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The call balanced solid operational and financial strengths—strong liquidity, disciplined capital allocation (notably large share repurchases), low bad debt, improving leasing trends in April, and constructive Sunbelt market fundamentals—against notable near-term headwinds including a $53M legal settlement, reaffirmed modest same-store guidance (NOI midpoint -0.5%), Q2 sequential compression, and timing risk tied to the California sale and supply absorption. Management emphasized conservative guidance and the timing sensitivity of earnings while expressing confidence in long-term market positioning and capital deployment.
Camden reaffirmed its full‑year 2026 same‑store guidance with midpoints of +0.75% revenue, +3.0% expense and -0.5% NOI, and kept the full‑year core FFO per share midpoint at $6.75; first‑quarter core FFO was $1.70 (beating the midpoint by $0.04), with Q2 core FFO guidance of $1.65–$1.69 (a $0.03 per‑share sequential mid‑point decline) driven by an expected $0.04 sequential same‑store NOI decrease partially offset by $0.01 of non‑same‑store NOI from acquisitions. Q1 results included unusually low bad debt (<40 bps), annualized net turnover of 30% (one of the lowest in company history) with 9.2% of move‑outs due to home purchases, $58.2M of non‑core FFO charges (including a $53M settlement and ~$4.9M investment losses), and the Q1 beat breakdown of +$0.01 revenue, +$0.02 property expense timing savings, and +$0.01 construction fee timing; renewal offers are being sent at mid‑3% increases. Balance‑sheet/capital actions noted: a $1.2B revolver recast (maturity extended four years, pricing down ~15 bps), $600M of 10‑year unsecured bonds at a ~5% all‑in rate, $423M of share repurchases in Q1 at an average $104.08 (plus $271M in 2025), a modeled $650M of proceeds used for repurchases, an expectation to reinvest ~60% of SoCal sale proceeds via 1031 exchanges and a plan for roughly $1B of acquisitions to maximize tax‑deferred exchanges; April trends showed occupancy ~95.4% (vs 95.1% in Q1) and blended rates roughly +100 bps vs Q1.
Promotions of Alexander Jessett to CEO, Laurie A. Baker to president/COO and Ben Fraker reinforce succession planning with each executive bringing 25+ years at Camden; Camden ranked #13 on Fortune Best Places to Work for the 19th consecutive year with 96% employee approval.
Recast $1.2B revolving credit facility extending maturity four years and reduced pricing by 15 bps; issued $600M of 10-year unsecured bonds at ~5% to lock in long-term fixed-rate financing and extend weighted-average debt maturity.
Share repurchases of $423M in the quarter at an average $104.08/share (plus $271M in 2025), and $693M repurchased between 2025–2026 at ~6.4% FFO yield, demonstrating opportunistic capital deployment while shares trade at a discount to NAV.
Reported core FFO of $1.70/share for Q1, beating the midpoint of guidance by $0.04 with drivers including lower bad debt and timing-related property expense savings.
Recorded lowest bad debt level since COVID at <40 basis points in Q1 driven by higher collections (aided by ~10% higher 2026 tax refunds for middle/high income earners) and enhanced resident credit screening.
April occupancy improved to ~95.4% from 95.1% in Q1; blended rates up ~100 basis points in April versus Q1; renewal offers for May–July set in the mid-3% range with typical achieved rates ~50 bps below offers.
California disposition process advanced with >230 confidentiality agreements and one buyer in diligence (anticipated late June/July close); plan to reinvest ~60% of proceeds via 1031 exchanges and already deployed proceeds to acquisitions (Camden Alpharetta and Camden at Lake Nona combined $170M) and repurchases.
First-quarter annualized net turnover rate of 30%—one of the lowest in company history—move-outs for home purchases only 9.2% of total, reflecting record resident retention and highest customer sentiment scores to date.
Management highlighted strong demographic and job trends: Dallas–Fort Worth led absolute job growth (12 months ended Jan), Houston added ~127k residents year-over-year (12 months to 07/01/2025), and migration reaccelerating in 2026 with >10% sequential annual increases in several key markets; cap rates for newer, well-located Sunbelt trades remain in the ~4.5%–5% range.
Good morning, and welcome to Camden Property Trust First Quarter 2026 Earnings Conference Call. I am Kimberly Callahan, senior vice president of investor relations. Joining me today for our prepared remarks are Richard J. Campo, Camden’s executive chairman; Alexander Jessett, chief executive officer; Laurie A. Baker, president and chief operating officer; and Unknown Executive, chief financial officer. D. Keith Oden, executive vice chairman, and Stanley Jones, senior vice president of real estate investments, will also be available for the Q&A portion of our call. Today’s event is being webcast through the Investors section of our website at camdenliving.com, and a replay will be available shortly after the call ends.
Please note this event is being recorded. Before we begin our prepared remarks, I would like to advise everyone that we will be making forward-looking statements based on our current expectations and beliefs. These statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from expectations. Further information about these risks can be found in our filings with the SEC, and we encourage you to review them. Any forward-looking statements made on today’s call represent management’s current opinions, and the company assumes no obligation to update or supplement these statements because of subsequent events. As a reminder, Camden’s complete first quarter 2026 earnings release is available in the Investors section of our website at camdenliving.com, and it includes reconciliations to...