Camden Property Trust (CPT) Earnings & Analysis

Latest quarter

Camden Property Trust reported Q2 FY2026 revenue of $392.9 million, down −0.90% from Q2 FY2025, and above the consensus of $391.7 million. The company reported adjusted EPS, as the consensus counts it, of $1.68, above the consensus of $1.67.

The filing shows diluted EPS of $0.18 in Q2 FY2026, compared with $0.74 a year earlier. Camden attributed the lower quarterly net income primarily to a prior-year gain on an operating-property sale, higher interest expense related to debt issuance and other borrowings, and higher depreciation expense from acquisitions. The filing said same-store property NOI declined as higher property expenses, including salaries and benefits, utilities, real estate taxes, marketing and leasing, and insurance, outweighed relatively unchanged same-store revenue.

Camden reported a gross margin of 64.1%, compared with 63.8% a year earlier, while operating margin was 12.2%, compared with 15.9%. The company reported free cash flow of −$380.8 million, compared with $34.8 million in Q2 FY2025.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

Alex Jessett said the company saw improving leasing trends during the quarter and in July, citing a greater share of communities with positive signed new leases and gains in signed renewal rates. He said system-wide average signed new leases had turned positive on a handful of days during the month.

In response to questions on pricing, Jessett said third- and fourth-quarter blended lease rates were expected to be positive at roughly 1% or slightly above, while he did not expect new-lease pricing to stay flat throughout the entire third quarter because of normal seasonal patterns. Laurie Baker said concessions were moderating across markets and remained most prevalent where development activity and supply were high. She said Austin’s occupancy had improved for six consecutive quarters, while the company continued to manage concessions and pricing to balance occupancy across its portfolio.

Jessett said Austin and Nashville faced supply issues, and he said markets including Austin, Denver and Phoenix were performing in line with the company’s expectations despite differing local conditions. Ben Fraker said the company expected the new same-store portfolio’s bad debt to be around 40 basis points and other income to grow by around 3%.

On capital allocation, Fraker said Camden completed the sale of 11 California operating communities for $1.625 billion and used approximately $900.0 million of proceeds to repay line-of-credit and commercial-paper balances. He said completed investments included seven operating-community acquisitions and two development land sites, while $195 million was allocated to awarded real estate in the third quarter and approximately $200 million was anticipated for future 1031 acquisitions by late fourth quarter. Fraker said Camden also closed a new one-year $350 million unsecured term loan after quarter-end.

Asked about the remaining portfolio, Jessett said Camden did not intend to exit its existing markets but expected to reduce exposure slightly in DC Metro and Houston. Stanley Jones said underwriting for recent acquisitions assumed no real effective rent growth until 2027 and 2028, when concessions would be gradually removed.

Guidance

Camden updated its FY2026 same-store outlook excluding California to expense growth of 2.50% and an operating-income decline of −0.60%. Ben Fraker said the company maintained its full-year Core FFO midpoint of $6.75 and continued to expect same-store revenue growth excluding California of 0.50%.