Camden Property Trust Reports Decline in Net Income and Cash Reserves, Despite Revenue Growth

Camden Property Trust (CPT) reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

As of September 30, 2024, total real estate assets were valued at $8,633,503,000, a decrease from $8,859,603,000 at the end of 2023. The company's net operating real estate assets also declined to $8,215,294,000 from $8,372,739,000. Cash and cash equivalents saw a significant drop to $31,234,000 from $259,686,000. Total liabilities decreased to $4,132,903,000 from $4,331,966,000, while total equity fell to $4,814,278,000 from $5,051,771,000.

Property revenues for Q3 2024 were $387,232,000, down from $390,778,000 in Q3 2023, while revenues for the nine months increased slightly to $1,157,523,000 from $1,154,440,000. Total property expenses rose to $143,360,000 in Q3 2024 from $140,105,000 in Q3 2023, and for the nine months, expenses increased to $420,794,000 from $412,383,000. The net income attributable to common shareholders for Q3 2024 was $(4,204,000), a sharp decline from $47,963,000 in Q3 2023, with nine-month net income also down to $122,602,000 from $180,979,000.

The decrease in net income for Q3 was primarily attributed to a $41,000,000 impairment related to land development activities. Additionally, the company recognized a gain of $43,800,000 from the sale of an operating property in Atlanta, Georgia, compared to a gain of $48,900,000 from a property sale in Costa Mesa, California, in the previous year.

Strategically, Camden Property Trust has been active in managing its debt. The company issued $400,000,000 of senior unsecured notes in January 2024 and repaid a $300,000,000 unsecured term loan. As of September 30, 2024, the company had senior unsecured notes totaling $2,943,600,000, down from $3,045,400,000 at the end of 2023. The weighted average maturity of debt was approximately 6.5 years.

The company also repurchased 515,974 common shares for about $50,000,000 during the nine months ended September 30, 2024, with approximately $450,000,000 remaining authorized for repurchase. Camden Property Trust continues to maintain a robust portfolio, owning interests in 177 multifamily properties comprising 59,996 apartment homes across the United States, with five properties under construction expected to add 1,746 apartment homes upon completion.