CAMDEN PROPERTY TRUST
For the period ended Sep 30, 2024. Filed Nov 1, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 1, 2024
CPT$99.44-4.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-02.
0000906345-24-000027
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-01.
0000906345-24-000041
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 60 previous paragraphs and 63 current paragraphs.
45 unchanged; 10 reworded; 7 added; 5 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 4 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
Construction and Development Activity
Current report
We stopped development activities for the foreseeable future on four of our developments in the third quarter of 2024 and recorded approximately $41.0 million of impairment charges on three of these land parcels. We review our long-lived assets on an annual basis or whenever events or circumstances indicated the carrying amount of an asset may not be recoverable and our impairment evaluations take into consideration the current and anticipated economic climate. We currently have three other land parcels held for future development we plan to develop. However, the commencement of future developments may be impacted by macroeconomic issues, multifamily market conditions, and other factors. We will continue to evaluate future development starts based on market, economic, and capital market conditions. However, there can be no assurance we will not have impairments charges in the future.
Current report
Disposition
Current report
On July 8, 2024, Hurricane Beryl impacted several of our multifamily communities in the Houston, Texas area. During the three and nine months ended September 30, 2024, we expensed approximately $2.1 million of costs, net of anticipated insurance recoveries related to this hurricane.
Current report
In September 2024, we extended the maturity date of our $40.0 million unsecured floating rate term loan with an unrelated third party from September 2024 to September 2026.
Current report
Properties Under Development and Land
Current report
Land Holdings. At September 30, 2024, we also had four undeveloped land tracts with a valuation of approximately $57.8 million.
Removed paragraphs (5)
Previous report
Construction Activity
Previous report
Dispositions
Previous report
Subsequent Events
Previous report
On July 8, 2024, Hurricane Beryl impacted several of our multifamily communities in the Houston, Texas area. We are currently in the preliminary stage of assessing the effect of this event on the Company's consolidated financial results for the third quarter of 2024. Based upon the information available to date, we currently expect the storm-related expenses for this incident to be in the range of approximately $2.0 million to $3.0 million, net of available insurance proceeds. These estimates are preliminary and may change as we receive additional information.
Previous report
Properties Under Development
Reworded paragraphs (10)
Previous wording
During the three and six months ended June 30, 2024, our results reflect an increase in same store revenues of approximately 1.4% and 2.0%, respectively, as compared to the same periods in 2023. The increases were in part due to higher average rental rates, which we believe were primarily attributable to job growth, favorable demographics with a higher propensity to rent versus buy, and continued demand for multifamily housing in our markets.
Current wording
During the three and nine months ended September 30, 2024, our results reflect an increase in same store revenues of approximately 0.6% and 1.5%, respectively, as compared to the same periods in 2023. The increases were in part due to higher average rental rates, which we believe were primarily attributable to job growth, favorable demographics with a higher propensity to rent versus buy, and continued demand for multifamily housing in our markets.
Previous wording
We believe the levels of new multifamily supply in the submarkets and asset classes in which we operate are elevated in 2024, but should be met with continued demand to absorb these new deliveries. However, if this were to change or other economic conditions were to worsen, our operating results could be adversely affected.
Current wording
We believe the levels of new multifamily supply in the submarkets and asset classes in which we operate continue to be elevated for the remainder of 2024 and into 2025, but should be met with continued demand to absorb these new deliveries. However, if this were to change or other economic conditions were to worsen, our operating results could be adversely affected.
Previous wording
Net income attributable to common shareholders was $42.9 million and $91.1 million for the three months ended June 30, 2024 and 2023, respectively, and was $126.8 million and $133.0 million for the six months ended June 30, 2024 and 2023, respectively. The $48.2 million decrease during the three months ended June 30, 2024, as compared to the same period in 2023, was primarily due to a $48.9 million gain on sale of one operating property recognized in 2023. The $6.2 million decrease during the six months ended June 30, 2024, as compared to the same period in 2023, was primarily due to recognizing a higher gain on sale of one operating property in 2023 of $48.9 million as compared to recognizing the gain on sale of one operating property in 2024 of $43.8 million. See further discussion of our 2024 operations as compared to 2023 in"Results of Operations," below.
Current wording
Net income (loss) attributable to common shareholders was $(4.2) million and $48.0 million for the three months ended September 30, 2024 and 2023, respectively, and was $122.6 million and $181.0 million for the nine months ended September 30, 2024 and 2023, respectively. The $52.2 million and $58.4 million decreases during the three and nine months ended September 30, 2024 as compared to the same periods in 2023, were primarily due to recognizing a $41.0 million impairment associated with land development activities. The decrease during the nine months ended September 30, 2024, was also due to recognizing a higher gain on sale of one operating property in 2023 of $48.9 million as compared to recognizing a gain on sale of one operating property in 2024 of $43.8 million. See further discussion of our 2024 operations as compared to 2023 in"Results of Operations," below.
Previous wording
At June 30, 2024, we had a total of five properties under construction comprising 1,746 apartment homes. As of June 30, 2024, we estimated the total additional cost to complete the construction of these five properties is approximately $297.9 million.
Current wording
At September 30, 2024, we had a total of five properties under construction comprising 1,746 apartment homes. As of September 30, 2024, we estimated the total additional cost to complete the construction of these five properties is approximately $267.0 million.
Previous wording
Operating property: In February 2024, we sold one operating property comprised of 592 apartment homes located in Atlanta, Georgia for approximately $115.0 million and recognized a gain of approximately $43.8 million.
Current wording
In February 2024, we sold one operating property comprised of 592 apartment homes located in Atlanta, Georgia for approximately $115.0 million and recognized a gain of approximately $43.8 million.
Previous wording
During the three months ended June 30, 2024, we repurchased 44,692 common shares at an average price of $96.52 per share, and during the six months ended June 30, 2024, we repurchased 515,974 common shares at an average price of $96.88 per share. The total cost of the shares repurchased for the six months ended June 30, 2024 was approximately $50.0 million. As of the date of this filing, the remaining dollar value of our common equity securities authorized to be repurchased under this plan was approximately $450.0 million.
Current wording
During the nine months ended September 30, 2024, we repurchased 515,974 common shares for approximately $50.0 million at an average price of $96.88 per share. As of the date of this filing, the remaining dollar value of our common equity securities authorized to be repurchased under this plan was approximately $450.0 million.
Previous wording
As of June 30, 2024, we had no amounts outstanding and had approximately $1.2 billion available under our unsecured revolving credit facility. As of June 30, 2024, and through the date of this filing, we also had common shares having an aggregate offering amount of up to $500.0 million remaining available for sale under our 2023 ATM program and the ability to issue debt and equity under our automatic shelf registration statement. We believe scheduled repayments of debt due during the next 12 months are manageable at approximately $290.0 million which represents approximately 8.2% of our total outstanding debt, and excludes amortization of debt discounts and debt issuance costs. We believe we are well-positioned with a strong balance sheet and sufficient liquidity to fund new development, repositions, redevelopment, and other capital requirements including scheduled debt maturities. We will, however, continue to assess and take further actions we believe are prudent to meet our objectives and capital requirements.
Current wording
As of September 30, 2024, we had approximately $1.0 billion available under our $1.2 billion unsecured revolving credit facility and do not have any debt maturing until April 2026. As of September 30, 2024, and through the date of this filing, we also had common shares having an aggregate offering amount of up to $500.0 million remaining available for sale under our 2023 ATM program. We believe we are well-positioned with a strong balance sheet and sufficient liquidity to fund new development, repositions, redevelopment, and other capital requirements including scheduled debt maturities. We will, however, continue to assess and take further actions we believe are prudent to meet our objectives and capital requirements.
Previous wording
Our condensed consolidated balance sheet at June 30, 2024 includes approximately $439.8 million related to properties under development and land. Of this amount, approximately $216.6 million related to our properties currently under construction. In addition, we had approximately $223.2 million primarily invested in land held for future development.
Current wording
Our condensed consolidated balance sheet at September 30, 2024 includes approximately $418.2 million related to properties under development and land. Of this amount, approximately $230.9 million related to our properties currently under construction. In addition, we had approximately $187.3 million primarily invested in land held for future development and land holdings, which included approximately $129.5 million related to land held for future development and $57.8 million invested in land which we may develop in the future.
Previous wording
(1) Property in lease-up and was 69% leased at July 31, 2024.
Current wording
(1) Property in lease-up and was 74% leased at October 30, 2024.
Previous wording
(2) Property in lease-up and was 32% leased at July 31, 2024.
Current wording
(2) Property in lease-up and was 46% leased at October 30, 2024.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
In September 2024, we utilized cash on hand and our unsecured revolving credit facility to repay the principal amount of our 3.68% senior unsecured notes payable, which had a maturity date of September 15, 2024, for a total of $250.0 million, plus accrued interest.