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Camden Property Withdraws 2020 Guidance on Coronavirus Scare
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The coronavirus outbreak has been wreaking havoc on the U.S. economy, the residential REIT sector also being no exception. In regard to that, Camden Property Trust (CPT - Free Report) recently informed its stakeholders about the actions being taken to tackle this volatile situation.
Like its residential REIT counterparts, Mid-America Apartment Communities, Inc (MAA - Free Report) Apartment Investment and Management Company (AIV - Free Report) and AvalonBay Communities, Inc. (AVB - Free Report) , Camden Property has withdrawn its full-year 2020 guidance. Earlier, the company had projected its funds from operations (FFO) per share at $5.3-$5.5. This was based on the assumptions of same-property revenue growth of 2.7-3.7%, operating expense rise of 2.5-3.5%, and a NOI expansion of 2.3-4.3%.
Camden Property also updated on its operating position. The average same-store occupancy for first-quarter 2020 was strong at 96.1%. Moreover, as of Apr 14, 2020, the same-store occupancy remained healthy at about 95.6%. Currently, the company’s estimate of April cash collections is 94%. The company has also agreed with some of its residents to delay about 2% of April rents for future payment.
Furthermore, the company noted that its liquidity position is solid with a strong investment-grade balance sheet. It has more than $700 million available under its $900-million revolving credit facility, taking into account this week’s dividend payment. Further, the company has a geographically-diversified portfolio and no debt maturities until January 2022.
While providing the investment updates, Camden Property stated that this year it has not commenced construction activities on any new development communities, and the future actions will be based on the economic and market conditions.
Apart from the above-mentioned financial updates, Camden Property announced certain additional steps to deal with this pandemic. These include allowing employees to work remotely and additional pays if any of them is impacted by the pandemic. For its residents affected financially by the pandemic, the company has offered zero rent increases on lease renewals, waiving off late fees and payment plans.
Overall, the company’s strong liquidity position, with a healthy occupancy, is expected to aid it sail through these turbulent times.
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Camden Property Withdraws 2020 Guidance on Coronavirus Scare
The coronavirus outbreak has been wreaking havoc on the U.S. economy, the residential REIT sector also being no exception. In regard to that, Camden Property Trust (CPT - Free Report) recently informed its stakeholders about the actions being taken to tackle this volatile situation.
Like its residential REIT counterparts, Mid-America Apartment Communities, Inc (MAA - Free Report) Apartment Investment and Management Company (AIV - Free Report) and AvalonBay Communities, Inc. (AVB - Free Report) , Camden Property has withdrawn its full-year 2020 guidance. Earlier, the company had projected its funds from operations (FFO) per share at $5.3-$5.5. This was based on the assumptions of same-property revenue growth of 2.7-3.7%, operating expense rise of 2.5-3.5%, and a NOI expansion of 2.3-4.3%.
Camden Property also updated on its operating position. The average same-store occupancy for first-quarter 2020 was strong at 96.1%. Moreover, as of Apr 14, 2020, the same-store occupancy remained healthy at about 95.6%. Currently, the company’s estimate of April cash collections is 94%. The company has also agreed with some of its residents to delay about 2% of April rents for future payment.
Furthermore, the company noted that its liquidity position is solid with a strong investment-grade balance sheet. It has more than $700 million available under its $900-million revolving credit facility, taking into account this week’s dividend payment. Further, the company has a geographically-diversified portfolio and no debt maturities until January 2022.
While providing the investment updates, Camden Property stated that this year it has not commenced construction activities on any new development communities, and the future actions will be based on the economic and market conditions.
Apart from the above-mentioned financial updates, Camden Property announced certain additional steps to deal with this pandemic. These include allowing employees to work remotely and additional pays if any of them is impacted by the pandemic. For its residents affected financially by the pandemic, the company has offered zero rent increases on lease renewals, waiving off late fees and payment plans.
Overall, the company’s strong liquidity position, with a healthy occupancy, is expected to aid it sail through these turbulent times.
Shares of this Zacks Rank #3 (Hold) company have depreciated 14.6% in the past 12 months, while its industry has declined 7.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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