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Image source: The Motley Fool. Friday, July 31, 2026, at 11 a.m. ET Senior Vice President of Investor Relations - Kimberly Callahan Executive Chairman - Ric Campo Chief Executive Officer - Alex Jessett President and Chief Operating Officer - Laurie Baker Chief Financial Officer - Ben Fraker Executive Vice Chairman - Keith Oden Senior Vice President of Real Estate Investment - Stanley Jones Need a quote from a Motley Fool analyst? Email [email protected] Kimberly Callahan: Good morning, and welcome to Camden Property Trust Second Quarter 2026 Earnings Conference Call. I'm Kim Callahan, Senior Vice President of Investor Relations. Joining me today for our prepared remarks are Ric Campo, Camden's Executive Chairman; Alex Jessett, Chief Executive Officer; Laurie Baker, President and Chief Operating Officer; and Ben Fraker, Chief Financial Officer; Keith Oden, our Executive Vice Chairman; and Stanley Jones, Senior Vice President of Real Estate Investment 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. And 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 second quarter 2026 earnings release is available in the Investors section of our website at camdenliving.com, and it includes reconciliations to non-GAAP financial measures, which will be discussed on the call. We would like to respect everyone's time and complete our call within 1 hour, so please limit your initial question to one then rejoin the queue if you have a follow-up question or additional items to discuss. If we are unable to speak with everyone in the queue today, we'd be happy to respond to additional questions by phone or e-mail after the call concludes. At this time, I'll turn the call over to Ric Campo. Richard Campo: Good morning. Our on-hold music today featured a song about each of the 5 Camden markets, which recently hosted World Cup soccer games, Houston, Dallas, Miami, Atlanta and Los Angeles. Now that the World Cup has been completed, the host cities are celebrating the success and the economic benefits that the games produced. The last time the U.S. hosted the World Cup was 32 years ago in 1994 the year after Camden joined the New York Stock Exchange. That year, 9 cities hosted games and only 2 Sunbelt cities were included, Dallas and Orlando. This year, 11 cities hosted the games and the Sunbelt representation doubled. Camden has significant presence in all 4 Sunbelt host cities. Sunbelt cities have led the nation in population growth, employment growth, and a domestic in-migration over the last 3 decades. During this time, the Sunbelt has gained stature and recognition as confirmed by its prominence in this year's World Cup. We believe these trends will continue to make the Sunbelt an attractive place in which Camden's residents can live, work and play. As you know, we made the decision this year to improve our market concentration in the Sunbelt markets due to the sale of our California properties and reallocation of the proceeds to our Sunbelt markets. The plan was straightforward: sell the California properties for $1.625 billion, acquire $1 billion of newer properties in our existing markets and spend the remainder to buy back Camden's shares. Sounds simple, to execute to $3.25 billion in transactions in 6 months or so. At the same time, continue to operate our California properties at a high level, ensuring the sales success, easier said than done. As it turns out, the execution has been nearly flawless with only $200 million of acquisition properties left to identify. This is a direct result of our amazing team at Camden, including our West Coast property operations 100-member team led by Carter Powell, our national operations and asset management teams led by Laurie Baker, Travis Oden and Mike Zimmerman, our Real Estate Investment team led by Stanley Jones with [ Landon Bass ] leading the California sales effort. Our Legal Team, led by Josh Lebar, our HR team, led by Allison Dunavant, our IT and Marketing teams led by Kristy Simonette, our construction team, led by Steve Heffner, our Investor Relations team led by Kim Callahan, and our finance treasury, tax, risk and accounting teams led by Ben Fraker and Kevin Necas, truly a great team effort, job well done in Camden. We operated in California for 28 years. Saying goodbye is truly bitter-sweet. I want to thank Team Camden California for a job well done and all the best in the future. Hope our paths cross again soon. Up next is Alex Jessett. Alexander Jessett: Thanks, Rick, and good morning. As just mentioned, our time in California came to a close this week. As we've often said, Camden exists to improve people's lives. Over the years, we improved the lives of our Camden team in California by providing a Great Workplace where they could do their best work and have fun. We improved the lives of our residents by providing quality homes, which were expertly maintained and managed by some of our industry's finest professionals. And finally, we are and we will continue to improve our investors' lives through the reinvestment of the California proceeds into both faster-growing, newer Sunbelt communities and Camden stock. The biggest negative of the sale was having to part ways with approximately 100 Camden team members, many who have been with Camden for 10-plus years. I want to acknowledge the loyalty and professionalism they exhibited throughout our years together, which continued through Wednesday's closing. Thank you for all that you did to make our years in California, fun, meaningful and rewarding. The California sales proceeds were in line with our expectations, and I would like to thank the buyers for their professionalism throughout the process. The $1.625 billion of consideration for this 19-year-old portfolio represents for Camden a trailing 12-month FFO yield of 5.6% and an AFFO yield of 5.2%. The Prop 13 adjustment for the buyer should represent an approximate 30 basis point reduction from these numbers. In addition to the $694 million of Camden shares we repurchased at an FFO yield of 6.4% and an AFFO yield of 5.5%, we closed on $645 million of acquisitions with an average age of 5 years and an FFO yield just under 5% and 2 land sites for a total of $45 million. Additionally, we've been awarded 2 other acquisitions and an additional land site for a total of $195 million. We are actively underwriting several other acquisition opportunities and remain confident we can effectively deploy the remaining 1031 proceeds from the California sale. As mentioned previously, this strategic market rebalancing is FFO-neutral in year 1 and anticipate to be accretive in short order as the newer Sunbelt communities we acquire should grow faster than the older California assets we disposed off. In addition, we will no longer be subject to high levels of regulatory and advocacy spend in California. This spend, which we booked to property management expense would have reduced our California portfolio's annual NOI by approximately 80 basis points. Camden already has the youngest portfolio in the multifamily REIT sector and the sale of our California assets, combined with our 2026 new acquisitions, further reduces our average age by 1 year. In addition, we expect our future recurring CapEx spend per unit to decline by 5% and our bad debt to be reduced by 10 basis points after the sale. At the beginning of the year, we gave [indiscernible] FFO guidance of $6.75 per share at the midpoint of our guidance range. Last night, despite all of the moving parts this year, we reaffirmed that midpoint of $6.75 per share. Our initial guidance for same-store growth contemplated 50 basis points for revenue and negative 90 basis points for NOI when excluding the California portfolio. We are maintaining that full year same-store revenue guidance and increasing our full year same-store NOI guidance on better expense control. I know we are all looking for green shoots and they're becoming plentiful. Sequentially, signed blended lease rates improved 160 basis points in the second quarter as compared to a 70 basis point sequential increase this time last year. In July, almost [ 50% ] of our communities had positive signed new leases, up from only 20% in March. Looking across our markets, the majority of our communities in Atlanta, Charlotte, Dallas, Raleigh and Southeast Florida achieved positive signed new lease growth in July and approximately half of our communities in Houston, Orlando and Washington, D.C did as well. Additionally, signed renewal gains have increased by 170 basis points from March to July. And finally, on an effective basis, 50% of our communities had positive blends in the second quarter, increasing to 65% in July. On a blended signed basis, 55% of our communities were positive in the quarter, increasing to 75% in July. The trend is our friend. And finally, one of the questions I've been asked the most over the past couple of years is when Camden will start registering positive signed new lease growth? As you know, we have dynamic pricing, which changes daily, and I'm happy to report that system-wide average signed new leases have been positive a handful days this month, including at least 2 days this week, and that is a very green shoot. Camden has been extremely busy this year, and I echo Ric's shout out and thanks to our fantastic team members who have worked tirelessly to make all this happen. I will now turn the call over to Laurie Baker, our President and Chief Operating Officer. Laurie Baker: Thank you, Alex, and good morning, everyone. [ Prorating ] conditions across our portfolio are playing out as anticipated with steady improvements seen across our 13 current markets. Rental rates for the second quarter, now excluding California, had effective new leases down 3.3% and renewals up 2.8% for blended rate growth of negative 0.2%. This was in line with our expectations and reflected a 220 basis point improvement from negative 5.5% new lease rate growth in the first quarter of 2026. We also saw a 140 basis point improvement in blended rate growth from negative 1.6% in the first quarter 2026 to negative 0.2% for the second quarter 2026, and our blended rate growth turned positive in both June and July. Our renewal rates were fairly steady for the first half of 2026 but began to improve during our summer leasing season. The effective growth rate for renewals in both the first and second quarter was slightly below 3%. However, our signed renewal increase was 3.4% in June and over 4% in July, which positions us well for those leases becoming affected during the third quarter. Renewal offers to residents with August and September expirations were sent out with an average increase of 4.2%. Occupancy has also shown improvement and has been trending slightly ahead of budget with second quarter averaging 95.7% versus 95.1% in the first quarter of 2026. July occupancy was 95.8%, and we expect occupancy rates to remain relatively stable through the third quarter before moderating slightly with normal seasonal trends towards year-end. Turnover rates across our portfolio remained very low with second quarter 2026 annualized net turnover consistent with second quarter 2025 at 39%. A testament to our strong resident retention and satisfaction, and move-outs for home purchases also remained low at 10.4% for the second quarter. So while we're not declaring victory, we are encouraged by what we are seeing. Our operating story in the second quarter is one of improvements, strong renewal execution and broad-based pricing recovery across the portfolio. The green shoots are becoming more visible and our teams are doing exactly what Camden teams do best, executing locally, staying disciplined in positioning the portfolio to capture upside as market conditions continue to improve. With that, I'll turn the call over to Ben. Benjamin Fraker: Thank you, Laurie, and good morning, everyone. I will cover our second quarter results, the California disposition and related capital allocation activity, our balance sheet and our updated third quarter and full year outlook. Camden reported second quarter core FFO of $1.68 per share, $0.01 above the midpoint of our guidance range of $1.67 per share. The out-performance was driven primarily by stronger-than-anticipated occupancy across our stabilized operating communities. We are encouraged by continued improvement in leasing trends, new supply is past peak levels in most of our markets. Concessions are beginning to moderate and underlying demand remains healthy. As a result, revenues and NOI exceeded our expectations for the quarter. Next, I will discuss capital allocation and balance sheet activity. On July 29, we completed the sale of our 11 California operating communities for a combined $1.625 billion, the transaction was a major strategic step that allowed us to redeploy capital into higher growth markets, in Camden shares while maximizing tax efficiency. Our capital allocation priorities were clear; maximize long-term shareholder value and shift capital towards our existing Sunbelt markets with stronger population growth, employment growth, migration, household formation and long-term multifamily demand. First, we repurchased $694 million of Camden common shares during the second half of 2025 in the first half of 2026 at an average price of $105.17 per share. That was well below our estimated consensus NAV of around $130 per share and represented a 6.4% FFO yield. Second, we designated $1 billion of the California sales proceeds for 1031 Exchange Transactions in order to maximize tax efficiencies. And as Alex mentioned, we are making great progress on that front. Completed investments include 7 operating community acquisitions in Atlanta, Orlando, Nashville, Dallas, Phoenix, Tampa and Charlotte as well as 2 [ development ] land sites in the suburbs of Raleigh and Tampa. Approximately $900 million of the California proceeds were used to repay all outstanding balances under our line of credit and commercial paper program. $195 million will be used to purchase awarded real estate, including 2 communities and 1 land site in the third quarter. Approximately $200 million is anticipated to be used for future 1031 acquisitions to occur by late fourth quarter, and the remaining $330 million will be used for general corporate purposes. The repayment of our line of credit and commercial paper further strengthened Camden's balance sheet, resulting in a pro forma net debt to EBITDA at a strong 4.5x at the end of July and preserving substantial liquidity to fund acquisitions, development opportunities and other capital allocation priorities. Subsequent to quarter end, we closed and funded a new 1-year $350 million unsecured term loan. As this term loan is not revolving, we are leaving the balances outstanding to further enhance liquidity as we continue to opportunistically recycle capital. Turning to guidance. For the third quarter, we are providing core FFO guidance of $1.69 per share at the midpoint, up $0.01 from our second quarter core FFO of $1.68 per share. The sequential increase is driven by the following items. First, we expect a $0.03 benefit from improved same-store operations reflecting higher revenues during peak leasing season, lower insurance expense following our favorable renewal and lower property taxes from incrementally higher third quarter tax refunds. Second, we expect $0.02 of incremental interest income from cash balances currently held for future acquisitions and general purposes. Third, we expect $0.02 from lower corporate expenses primarily due to the timing of public company fees, lower disposition related costs and the elimination of regional overhead costs previously supporting our California operations. Finally, we expect a $0.01 benefit from lower interest expense due to lower debt balances. Together, these items add to a positive $0.08, partially offset by $0.07 from lower NOI following the California sale, net of NOI contributions from acquisitions completed in the second quarter and completed or expected in the third quarter. The result is our projected $0.01 sequential increase in core FFO per share. For the full year, we are maintaining our core FFO guidance midpoint of $6.75 per share, unchanged from our prior annual guidance. Operating performance has exceeded our expectations, and we now expect $0.03 per share full year benefit from better-than-expected same-store NOI performance, driven primarily by lower operating expenses. That benefit is primarily offset by the timing of real estate transactions throughout 2026. On same-store guidance, I want to provide additional perspective on the California disposition. At the beginning of the year, our same-store midpoint outlook, including California was revenue growth of 0.75%, expense growth of 3% and an NOI decline of 0.5% because California is no longer in the same-store pool, the more relevant comparison is our original outlook, excluding California. On that basis, the original midpoint implied revenue growth of 0.5%, expense growth of 3% and an NOI decline of 0.9%. Our updated outlook, excluding California shows revenue tracking in line with that original expectation and materially better expense performance. On an apples-to-apples basis, excluding California, revenue is in line with our initial outlook. Expenses are 50 basis points better and expected same-store NOI has improved by 30 basis points from a 0.9% decline to a 0.6% decline. Our revised same-store midpoint outlook, excluding California, is now revenue growth of 0.5%, expense growth of 2.5% and an NOI decline of 0.6%. The expense improvement is primarily driven by better utility performance, including lower water consumption, improved [ trash ] contract pricing, favorable insurance subrogation recoveries and insurance renewal pricing that came in better than originally anticipated. In summary, we are pleased with our second quarter results and the continued improvement in occupancy and operating fundamentals across the portfolio. The California disposition was a significant strategic milestone. We used the proceeds to repurchase shares at an attractive discount to NAV, reinvest tax efficiently through 1031 exchanges and increased exposure to attractive Sunbelt growth markets. With improving operating fundamentals, a flexible balance sheet and a younger, more growth-oriented portfolio, Camden remains well positioned for the future. Thank you, and we will now open the call to questions. Operator: Our first question today comes from Eric Wolfe from Citi. Eric Wolfe: For the 50 bps same-store revenue guidance, can you talk about how you're going to get there from an occupancy rate, bad debt and other income perspective? And then obviously, you threw out a lot of statistics there in terms of what you're seeing in July and August thus far. But maybe help us understand sort of what you're seeing in terms of blends and how that plays into the guidance? Alexander Jessett: Absolutely. Thanks, Eric. So the first thing, obviously, and we did throw out a lot of stats there. And I hope the overriding view is that we're seeing a lot of green shoots. And so we're not going to get into our total July numbers, but what I will tell you is when we look at the effective July rates that we have, both on new leases, renewals on a blended basis, it's looking pretty good. And when we look at a signed, the signed has really given us a lot of comfort as the way the rest of this year can roll forward. And if you think about it on the signed basis. If you look at a new lease, every new lease, we signed it about 25 days before the people move in. And then if you look at it on the renewal side, we're about 60 days before they move in. So we've got pretty good visibility right now to the way the rest of the third quarter is going to look. And it is really a sharp acceleration versus what we saw this time last year. And then when you look at the occupancy side, so obviously, we're really, really comfortable with where our occupancy is right now. We are anticipating a slight uptick in the third quarter, which is normal. And then we are anticipating a slight downtick in the fourth quarter. Now if you compare that to what we saw in the fourth quarter of last year, in the fourth quarter last year, we saw a pretty significant drop-off occupancy, I think it got down about 95.1%. We're absolutely not anticipating that, that's what's going to occur this year. And once again, we've got pretty good visibility on a couple of -- going out about 3 months and things are looking really, really strong for us right now. Operator: Our next question comes from Jamie Feldman from Wells Fargo. Jamie Feldman: This is Connor on with Jamie. And congratulations on such a well-managed portfolio sale. Can you clarify whether the $1.625 billion sale price is stated before or after transaction costs and fees? And if before, approximately how much of transaction-related fees should investors assume? Alexander Jessett: Yes, absolutely. And thanks, Conor, for the congratulations. It absolutely goes to our teams in the field. They did a wonderful job in getting this transaction across the finish line. When you look at the $1.625 billion, that is before transaction costs and transaction costs for us is in the neighborhood of $15 million. I will point out that over half of that is management tax on one transaction that we have in or we had in Los Angeles, the city of Los Angeles. So you see some of the additional costs that are just associated with operating in that marketplace. But yes, it's about $15 million. Operator: Our next question comes from Haendel St. Juste from Mizuho. Haendel St. Juste: I wanted to go back to the subject of stock buybacks. Earlier, you mentioned that you hit your target from the portfolio redeployment, and you still have some acquisitions that you're targeting. So I'm curious, given where the stock is, broadly, are stock buybacks off the table? And would they require any incremental dispositions just broadly your thoughts on capital deployment with a range of options in front of you today? Benjamin Fraker: Haendel, I think we have to -- let me just talk about how we think about capital allocation first, right? So when you think about capital allocation, there's lots of things you can do, right? You can buy assets, you can develop, you can improve your portfolio through enhancements that we are doing through our rehab programs and redevelopment programs and you buy stock. And so we clearly have bought a lot of stock. And if you take a look at the last 2 years, just to put it in perspective, we sold $2.1 billion of older assets. We bought $1.1 billion roughly so far. We have $200 million left on this 1031 exchange program to try to minimize the special dividend that we might have to have. And we decided that rather than doing a special dividend, we do -- if we're going to give -- send capital back to shareholders, we'd rather do it in a buyback than a special dividend. So when you think about all that calculus and we do some development. And the development that we're doing is definitely lower than we normally do, primarily because it's hard to make numbers work and all that. So I would say that just generally, if you look at the best investment we can make today, it's buying our stock even at this level today. The -- we are in the real estate business long term. So we don't want to sort of shut down our operations of being able to buy and sell and develop. But on the other hand, we're going to definitely lean towards that -- the capital allocation creates more value for shareholders. And today, when you look at the existing market, and you look at our NAV, the consensus NAV is somewhere in that $130 range and you look at our stock at $111 today. That's a gap, a big gap. And we've always said that we will lean into buying stock if it's at a significant discount and it's persists over a long period of time and we can't -- or a reasonable period of time, so we can actually execute. And then we are going to lever up long term to buy stock. So we would have to sell additional assets. But I wouldn't say that we're done buying stock back. I would just say that if the market continues and we're able to thread the needle between the tax efficiency and the ability to create some cash flow out of asset sales without having to pay special dividends, we could lean into buying the stock again too. Alex, you might want to augment that? Alexander Jessett: Yes, absolutely. That's exactly right. And the way we look at it right now is we have maximized the tax efficiency aspects, and that's why we are buying assets entirely for that reason. But repurchasing shares is a great use of our capital. As I tell most of you guys and we met at NAREIT or other conferences, Camden is a screaming buy, and we believe that too, so that's why we're out there buying. Operator: Our next question comes from Brad Heffern from RBC. Brad Heffern: Alex, you gave that commentary around system-wide signed new leases having been positive a few days in July. I just want to make sure I understand that right. Should we assume that, that means new lease should be close to flat in July and August? Or does that just bounce around a lot day-to-day and you have some more negative days and it just blends to something lower? Alexander Jessett: Yes, it absolutely does bounce around quite a bit. but we are getting pretty close to the point where it's going to be flat. Now it's not going to be flat for the full quarter. And whenever anybody asks me about this, I already said third quarter, but not for the entire third quarter. I said it might be a day, it might be a couple of days, and that's exactly what we've hit. I think you have to remember that if you sort of think about the way the peak leasing cycle works or peak leasing season works, you really sort of peak out towards the latter part of August and then in September, it starts the decline of the typical seasonality. So I wouldn't expect to see it for the full quarter, but absolutely love the direction that we're going, love these green shoots, and this is the first time in several years that we can sit here and tell you, we've seen system-wide some positive new leases. So it's absolutely wonderful, wonderful green shoot for us. Operator: Our next question comes from Steve Sakwa from Evercore ISI. Steve Sakwa: Just maybe sticking on that theme, Alex. I think at NAREIT,you had sort of maybe talked about a further improvement in new lease pricing into the fourth quarter. And I'm just wondering, just based on all the green shoots you're seeing, is that still your expectation for new leases? And if you could just maybe give us a sense for maybe what your expected blended -- blended rent growth is for the back half? That would be great. Alexander Jessett: Yes, absolutely. So if you look at the third quarter and the fourth quarter, I think on the new lease side, they're going to look fairly similar. And a lot of it is, is that the fourth quarter becomes an easier comp for us. If you look at it on a blended basis, what we're anticipating is both the third quarter and the fourth quarter to be positive on the blend sort of in the 1% and just over 1% type range. That's what we're expecting. And once again, what's different this year in our math than what you would typically see is that the fourth quarter last year was decidedly weaker and that does help us with the [indiscernible]. Operator: Our next question comes from Jana Galan from Bank of America. Jana Galan: Curious, just following up on the term loan, what the plan is for the debt maturities in the back half of the year? Benjamin Fraker: Sure. So the reason we put the term loan in place was to enhance our liquidity as we were waiting to sell our California portfolio, and we have that for 1 year, which is going to give us continued flexibility and full availability under our line of credit and commercial paper program as we approach that maturity. So we're going to continue to watch the markets. And if it makes sense, we will issue another long-term bond to refinance that in November, but the term loan does allow us to have that additional liquidity and financial flexibility under our line and commercial paper. Operator: Our next question comes from Rich Anderson from Cantor Fitzgerald. Richard Anderson: So Alex, when we were at a NAREIT. We talked about this sort of hockey stick concept of future growth. And you implied that in the third quarter, you expect and I don't want to put words in your mouth -- don't want me to do that, but there would be some sort of real visible hockey stick-type of event in the third quarter, and that was what was behind your guidance. I understand you're laying out all these green shoots, but it doesn't still feel like hockey stick to me. So I'm wondering if you're pulling back on that third quarter thesis a little bit or if it's still very much intact as you look into the coming quarter? Alexander Jessett: Absolutely. Not pulling back whatsoever. And maybe that's just because I'm in Texas, and I don't really know what a hockey stick looks like. Here is what I tell you guys. The third quarter is looking really strong. We have tons of green shoots. And because of that, we feel really good that the third quarter in terms of new leases, renewals, blends, is going to be an outlier as compared to what we've seen in the third quarter last year and what we're seeing in the second quarter this year. So I feel really, really good about that. And then that's going to give us the pricing power that we need as you move into the typical weaker fourth quarter. And so we feel very good and not pulling back on our thought process whatsoever. Benjamin Fraker: I'm sorry, the interesting part of this equation is, I think that a lot of folks have the recency effect, right, which is, gee, from -- in '24, '25 and '26, revenue grew on average for cumulatively through that period 2.1%. So we have had 41 months of -- and if you go just back before into 2023 because you started having your -- the slowdown because of supply then. So you had 41 months so far where we've had rents that have basically been flat or down in most markets. And so the market has this recency effect like, "Oh, well, that's just going to -- let's just take the graph, and we'll just take it out into '26, '27, '28, and that's what's going to happen. And -- but if you look at post-financial crisis, okay? So -- our revenue went down roughly 5.1% in 2009 and 2010. From 2011 through 2019, the highest growth rate was 6.5%, the lowest growth rate was 0.9%. And through that 8-year period, it averaged somewhere around 4%. And so we're going to go back to a more normalized economy. You never had -- we had an unprecedented situation where you had a 50-year high in supply, and so that's clearly something that we had to work through and we'll continue to work through. And once we do get to this point where you have a balance in supply and demand. We still have high demand in our markets. And we know that supply is going down. And so when you hit that pivot point, it's going to be more like a hockey stick than a slow slog growth, in my opinion. And just because of the history of where we operate and the history of how these markets work when you have supply and demand or demand higher than supply, which is getting ready to happen next year probably. Operator: Our next question comes from Wes Golladay from Baird. Wesley Golladay: A quick question on concessions. I know you don't typically like to use them, but I believe you were using them last year. Have you pulled back on that? Laurie Baker: Yes. This is Laurie. We're continuing to see our concessions in the markets level off. And where we're seeing them the most is where there's development in these high supply areas. As a practice, we do not use concessions, but we have on a handful of our communities where we've had acquisitions or new developments that we are also leasing up -- that is something we usually put into our pro forma. We always assume at least a month of concessions for development. And then we have to manage throughout the lease up, what makes the most sense with sometimes specials for early move-ins. And so we are seeing that moderate throughout all of our markets. And where we're seeing it moderate is where we're also seeing the opportunity for us to pick up on both occupancy and our new leases and renewals. So let me just give you kind of an example. Austin, obviously, one of the highest concessionary markets. One of the most challenged with supply, is quickly changing. And we're continuing to work through that supply but we also continue to see strong demand absorption with more than 11,000 units just in the last 12 months. So if you look at the beginning of last year, 2025, we've seen occupancy improve 6 quarters straight. So quarter-over-quarter, we're continuing to see occupancy improve. Second quarter 2025 occupancy was at 94.7%. And this quarter, we just delivered 96.1%. So you have 140 basis points better, and then we're currently in July, I'll just share "Don't smack me, Alex". But our occupancy is sitting at 96.6%. So again, as occupancy firms up, concessions burn off and we have the ability to improve our pricing, you're just starting to see that play out. As you just heard from Rick and Alex talking about the change. And who would have thought that we'd be sitting at 96.6% occupancy in Austin, Texas today. So that's kind of -- again, we're managing around the concessions. We're continuing to sell the value and making price decisions based on what makes the most sense to balance occupancy on our portfolio. Operator: Our next question comes from John Kim from BMO Capital Markets. John Kim: Just listening to this call and the other calls in the sector so far. There hasn't been a lot of talk about AI or technology advancements or data analytics, Airbnb. And I was wondering if there's anything else that you're doing on this front? That would meaningfully drive same-store revenue? Or has most of this already been accomplished? Alexander Jessett: We are incredibly bullish about what AI can do really for every single line item on an income statement. And let me tell you what we're doing. So the approach that we're taking at Camden, we're dividing into three words. We call it leadership, crowd and then lab. And leadership is a concept that all of us in a leadership position is encouraging AI, encouraging our teams to work with AI, encouraging our teams to come up with solutions that are AI-driven. The next thing is we look at the crowd. And our belief is that the best solutions always come from those that are closest to the problem. So we are empowering all of our team members to play around, see what they can use AI for in order to create efficiencies. And then once they come up with solutions that work or that they believe work, we have put together a lab. And my belief is we are one of the few companies really in the country that have put together this lab concept where it's also like a sandbox where they can play with whatever they're rolling out and make sure that, number one, it's safe; number two, it works, et cetera. But if you look at an income statement, and then you start at the very top, if we can use AI to increase our renewal percentages, that is one of the most dramatic changes that can actually flow through the bottom line. If we can -- if you look at the expense categories, if we can use AI to make sure that we minimize our property insurance expense, remember the property insurance for us is about 7% of our total expenses. If we can proactively get on top of where the claims occur and make sure that we do what we need to, to minimize those. If you think about workers' compensation claims, if we can use AI to analyze where those occur, that will 100% help us in that category, if we can use AI to help understand our utility spend, that will absolutely be helpful. We believe that AI is here to help Camden, to help our team members be more efficient, and we are very, very bullish about it. Every Senior Vice President in this company meets once a month, to discuss the AI initiatives coming out of each of their departments. So this is something that we are at the front lines of. And I firmly believe that at this point in time next year, we will be talking about real life, real benefits to the bottom line for Camden. So incredibly excited about it. There's a lot out there, and we are at the forefront of it. Operator: Our next question comes from Michael Goldsmith from UBS. Ami Probandt: This is Ami on with Michael. So I know you guys just sold out of California, but are there any other noncore markets in the portfolio that you could target for sales in the future, maybe D.C. portfolio and become a pure-play [ Sunbelt REIT ]or anything else that you guys might be looking to do with the portfolio moving forward? Alexander Goldfarb: So the rest of our markets, they're like our children, we love them all equally. Sometimes we get annoyed with some of them, but we love them all equally. And so we're not going to sell out. We have no intention to sell out of any of our existing markets. Now as I've mentioned before, we will reduce our exposure to our 2 largest markets, and that's D.C. Metro and that's Houston. And that's just for portfolio allocation purposes. So expect us to reduce our exposure there slightly. But no, the rest of our markets, we intend to stay in for the long time. Operator: Our next question comes from Adam Kramer from Morgan Stanley. Adam Kramer: Great. I'll sneak in a two-parter here, if that's okay. First is just on sort of market level. If you go sort of your expectations going into 2Q, which markets had the strongest improvement relative to expectations and which markets maybe disappointed relative to those expectations? And then second part, I think we asked earlier, apologies if I missed the answer. Just thinking about your same-store revenue guidance midpoint now. What would be sort of the rough contribution from occupancy, rent growth and then sort of ancillary revenue? Benjamin Fraker: I'll take the second one first. As far as the same-store revenue guidance goes, yes, it's made of all components. We've seen better occupancy in the second quarter. And as Alex said earlier, we're going to hope to see -- we are planning on seeing an uptick in the third quarter with a slight downtick back in the fourth quarter. Our bad debt is normalized as expected. We think it's going to come in for the new same-store portfolio at around 40 basis points that compares to our prior 50 basis points guidance, which at 10 basis points is primarily driven by California being gone. Our other income, we expect to grow somewhere around 3% and -- and as Alex touched on earlier, our back half blends will be somewhere 1% or north of that in the back half, and we feel very comfortable with our guidance, the way it is laid out. And based on the green shoots we have seen, the occupancy strength we've seen and the renewals that we've begun to sign. Alexander Jessett: And I'll hit the first part. So if you think about our expectations for the second quarter, there's not any one market that was really an outlier from what we expected. As I mentioned in my prepared remarks, we clearly had a lot of our markets that were showing green shoots. Good news is, is that's what we expected. And when you look at the markets that are a little bit behind and obviously, markets that jump out for being a little bit behind would be sort of Austin and Denver and Phoenix. But when I look at Nashville, when I look at those markets, though, I know what the issues are, right? So Austin, in Nashville, that's a supply issue. And when I look at Austin, Austin is sort of an interesting market to me because -- we always sort of talk about the second derivative. If you actually look, Austin is showing the highest improved momentum amongst all major U.S. markets. This is not a Camden number. This is across all operators in Austin. There's been a 360 basis points of less decline in rents market-wide March to June. But let me tell you what it is for us. If you look at March, signed new leases in Austin were down 11%. If you look at July, they're down 3%. That still is a negative, but that is 800 basis points better than what we saw in March. So even the market that had been softer for us are starting to show some fairly meaningful green shoots. And then you look at Phoenix. I'm always amazed that anybody rents with a 120 degrees, right? Phoenix is reverse seasonality, that's what happens. And Phoenix is really a story of two markets, right? It's East versus West. And the East side of Phoenix is absolutely outperforming the West. Thankfully, we are 100% on the east side. So no one market is doing better or worse than we expected. They're all doing in line with our expectations. But we just continue to see some things that really are giving us comfort as we look at the way the rest of this year can shake out. Richard Campo: Alex, I would just add, you mentioned Denver and Denver has been one that's been -- a lot of talk about, but we're seeing some of the biggest gains in our effective leases from the second quarter to where we're sitting today, and moving again from a negative 7.7% on effective new leases second -- in our second quarter to now negative 4.3%. So I mean, again, you're seeing improvements across the board even in those that have been a little more challenged, whether it is a supply story or just some of the market dynamics and that leads us to believe that we're definitely trending in the right direction and directionally should position us for steady improvement since those leases become affected in our third and fourth quarter. Operator: Our next question comes from Austin Wurschmidt from KeyBanc Capital Markets. Austin Wurschmidt: I realize things can change quickly as you just alluded to with the examples in Austin, Phoenix and Denver. But what percentage of leases today are at a gain to lease? And what's kind of the magnitude of that gain to lease? Alexander Jessett: Here's the way I would look at it, and I come back to my prepared remarks. So in my prepared remarks, I talked about that 50% of our communities in July have positive signed new leases. So that's definitely the direction you want to be in, if you compare that to where we were in March, where it was only 20%. And if you're looking at just sort of not looking at new lease or renewals. But the question -- if the question is about gain or loss to lease on the financial side, in July, we actually rolled into a loss to lease situation. And we haven't been in a loss to lease situation this year. So feel really good. That's the direction in which we're going. And if you look and you say, okay, well, where are the gain to leases. The gain to leases are exactly where you would expect them to be, gain to lease. We've got a slight gain to lease in Austin, and we've got a little bit of a gain to lease in Nashville, but the rest of them are operating a loss to lease. Operator: Our next question comes from Alexander Goldfarb from Piper Sandler. Alexander Goldfarb: I just wanted to follow up on Ami's question. understand that you're going to reduce your top two markets reduce that exposure. But as you guys conducted this process, I know originally years ago, you run Kansas City, but certainly, the landscape has changed, especially as we think about where supply [indiscernible] are. Are any -- did any of the Midwestern markets or any of those at all attractive to you from a pro-growth low supply markets that you'd want to enter? Or as you undertook this California repositioning exercise you did look at Midwest and determined that your best investment remains in the Sunbelt? Alexander Jessett: Yes. So what we do is we look at where the population growth is and where the employment growth is. And if you look at the markets in which we operate right now, those markets lead the nation in both of those categories. It is interesting, and we are paying attention to the fact that some of the Midwest markets are starting to get population growth a little bit more outsized than they typically do. And I think that's an affordability issue. What we have yet to see is whether or not that is a long-term trend. If you think about what we do, obviously, we are a very capital-intensive business. We're in a slow-moving business when it comes to investments. And so you want to make sure that you're not jumping on a trend that may not last, right? And so we continually evaluate all of the markets out there. And I will tell you that if any one market jumps out, and shows that it is a long-term trend of high population growth, high employment growth, then we will absolutely look at that market. But right now, we think we're in the right markets. I will tell you that probably two to three markets a year, we do a deep dive on to see if it's something that we want to enter. And the last one that we did a deep dive on that screen was Nashville, everyone that we deep dive since then hasn't screened. But we continue to look -- and if we believe that on a long-term basis that we can go into a market, create shareholder value, then we'll do that. Operator: Our next question comes from Rich Hightower from Barclays. Richard Hightower: Just a small one for me. And I know it's a relatively minor line item in the OpEx stack, but I did notice that your marketing and leasing expense, which I know is separate from the concession question earlier. It's gone up double digits year-to-date, well above any other cost category. So does that signal anything about the strength or weakness of the market kind of beyond the revenue commentary? Richard Campo: Rich, so I'll answer that. Our customer acquisition costs have increased year-over-year, meaning that guests are just more expensive. But the marketing spend for us was really ramped up as we entered into this leasing -- the peak leasing season where demand is typically high. And -- and we wanted to make sure that we went into this last summer season capturing as much of the demand as possible. I mean, remember, we are coming off a 95.1% occupancy in the first quarter, not where we want it to be. And so we didn't hold back in our marketing spend in case we had a shorter leasing season like we did last year. Fortunately, we didn't and so far have not experienced that. But that was a little bit of the reason, and we didn't want to be sorry at the end of the season that we didn't push a little bit where we thought we could actually make a difference. And the good news is lead volume has been up. We've been able to drive more qualified traffic as evidenced by just an increase of our guest card to visit ratios, which was up about a little over 7% year-over-year. Operator: Our next question comes from Peter Abramowitz from Deutsche Bank. Peter Abramowitz: Just wondering if you could give us an update on migration in your markets so far this year. Curious how it's been relative to historical levels and your expectations coming into the year, and which markets has it been stronger or weaker than your expectations? Alexander Jessett: Yes. The good news is that domestic in-migration into our markets continuing. And it's funny, I saw a headline from John Burns, who's a pretty good researcher out there. And his title was Domestic Migration is Normalizing, Not Disappearing. And I would tell you, if you go back and -- and Ric made a comment earlier where he said it's the 30-year trend into the Sunbelt markets. So I'm going to tell you it's been a 50-year trend into the Sunbelt markets. And sure that trend did an acceleration during the COVID times, but it is back to the long term and the long-term trend for us is very good for people moving into our markets, and one of the things that we look at is we say what percentage of our new renters are coming from outside of the Sunbelt. And when you look at that in the second quarter, 16% of our new renters were move-ins from non-[indiscernible] locations. And if I track that backwards, and I just sort of look and say, -- all right. What was that a year ago? A year ago, it was 15.5%. What was it before that, it was 14%. So it's not a matter of us seeing any drop-off on the domestic in-migration. And the reason is simple. It is you can come to our markets. Our markets have plentiful jobs, our markets are where young people want to be. Our markets have although people don't like it when it's the middle of the summer, our markets have fantastic weather, remember, you never have to shovel the heat off your car. So a lot of these drivers are what's causing people to continue to move to our markets, and we're continuing to see it in our data. Operator: Our next question comes from Julien Blouin from Goldman Sachs. Julien Blouin: Yes. I just wanted to go back to the blends expectation for the back half. It sounds like it a little over 1%, which I think would imply around 200 basis points of improvement versus the first half. Just wondering, your main Sunbelt here is assuming just 30 bps of improvement in the back half versus the first half. I guess I was wondering if you had any thoughts on why the ramp for your portfolio would be so much stronger over the coming months. Do you think the variance is maybe driven by market exposures? Is it age of assets? Do you feel like you have maybe just a more fundamentally bullish view of the coming months. Benjamin Fraker: I think it really comes down to what we've seen so far on the occupancy momentum that we picked up as well as the renewal momentum we've started to see and sign renewals that Alex and Laurie have talked about on top of the green shoots that we've begun to recognize across various of our markets on the new lease side as concessions begin to roll off with competing lease-ups. So that's really what it is. It's based on our current performance and what we're seeing so far. Alexander Jessett: And I'll add to that. All of our peers are great operators. And so their experience is perhaps different than our experience. I do know that sometimes people take different tasks or different approaches when it comes to do you get the occupancy up first. And then when you get the occupancy up, that gives you pricing power. That's the approach that we're taking and I'm sure whatever they're doing is right for their portfolio. Operator: Our next question comes from John Pawlowski from Green Street. John Pawlowski: My question is on the pricing on the 7 acquisitions you did in the quarter. So there could be a meaningfully different kind of going in yield versus a year 1 or year 2 stabilized yield just based off of what you assume for concession burn off. So Alex, could you share like the spot going in kind of cash NOI yield and then how you guys underwrote like maybe year 2 yield on these acquisitions? Alexander Jessett: Absolutely, but I'm going to let Stanley Jones, our Head of Real Estate Investment, take that one. Stanley Jones: John, when we look at the year 1 yield, as Alex mentioned in his prepared remarks, we are on that book of business, are in the high 4s and is based on current effective rents, 6 of these acquisitions are offering some concession, some ranging from no concessions up to just over 1.5 months. I would say, what I would caution against is painting those concessions across these deals with a broad brush. It's not always on every floor plan or lease term, oftentimes, it's on vacant units. So just a word of caution there. And then as you look at supply in the submarket, which these have been very competitive submarkets and have dealt with a lot of supply, the story for each of these acquisitions is really good. With just a few units left to absorb and very little new construction on the horizon. So as we look through the balance of I think our underwriting is conservative, and we're assuming no real effective rent growth until we get into 2027 and 2028. When we start to gradually remove those concessions. And once all the concessions are removed from the underwriting over the next 1 year, 1.5 years, you could see a path to getting to a yield in the mid-5s. Alexander Jessett: And I'm just going to add to that because, obviously, we've talked about a lot of transactions this year. And the fact that we are able to trade out of a 19-year-old portfolio in California with all of the complications associated with California into a 5-year old portfolio and blending the share repurchases and able to do that in a year 1 FFO neutral year 2 FFO accretive basis, I think it's just a remarkable accomplishment and a fantastic capital allocation. Operator: Our next question comes from Alex Kim from Zelman & Associates. Alex Kim: I wanted to ask about development lease-up velocity. Just curious how that's going in the two projects that you guys have in lease up and how are rents and concessions tracking relative to underwriting. And then just potentially what are the expected stabilization yields? Alexander Jessett: Yes, absolutely. So if you go back to original pro formas. Obviously, with a lot of these deals when we were underwriting them, we didn't sort of have the expectation that we would be dealing with a 50-year high term in terms of new supply. But I will tell you that they're all doing really well. And if you just look at where we are right now, and let's not talk about -- we've got one deal in lease-up, which is our Village District deal, and it's getting towards the end of lease-up which always makes it a little bit slower because you start to deal with the back door, but feel pretty good about where that one is. And I think that one is going to shake out to a stabilized yield at just 6%. When you look at the deals that are under construction, and we're talking about South Charlotte and Blake me first, those two deals, the real story there is that construction costs are coming in pretty dramatically as compared to what we originally anticipated. And the great news about that is -- you can get to a good number by having the numerator or the denominator moving in your favor. The denominator is very much moving in our favor on both of those. Nations is a little bit early in the process. So we haven't started leasing that one yet. But feel really good about the direction and where we're going. And we think that we're going to hit stabilized yields for these assets sort of in the high 5s, right around 6% range. Operator: And our next question comes from Eric Wolfe from Citi as a follow-up. Eric Wolfe: You mentioned July renewals were over 4% and you were sending out, I think, these renewals at the 4.2% level. I guess what would you expect to achieve on that 4.2%. I think historically, you've said maybe 50 basis points lower, but didn't know if the movement on new leases maybe meant that it could come in a little bit tighter than historical. So just curious what you think you can achieve on those renewals? Richard Campo: I mean, as you said, we continue to see the -- where our renewals go out. And by the time they're signed, the effect it is somewhere within that expected beat [indiscernible]. With August and September renewals going out at an average of 4.2% without giving you the exact numbers because they're moving day by day. I can tell you the September numbers are even stronger than the August number. So until good about that continued trend. And as long as it's going directionally to levels closer to the high 4s, we feel good about the third quarter and going into the fourth. Eric Wolfe: And then, I guess, maybe just last one. I mean, you gave the occupancy number. [indiscernible] gave the renewal number, I think, for July. I guess what's the hesitancy to provide sort of new lease number for July, you gave pieces of it, right? I think you have different pieces. But just curious like why -- I guess, why not just provide that number? Or if you think it sort of misleads people to provide that number because it changes around so much? Just curious on the philosophy there. Alexander Jessett: Yes. It's always funny because at one point in time, we started the way we kept giving all this information out there. You basically started giving monthly new lease and renewals. And that really does put you on -- it puts you on a treadmill where I think people focus far too much on little pieces of data rather than looking at the whole picture. Now that being said, we sort of laughed about it because it seems like whenever anybody has got some good numbers, then they want to talk about it. And we really do have good numbers. We're like, we really want to talk about it. But so I think we gave you enough color that you can gather that our numbers both on the new lease renewal and occupancy side are pretty good for July. But at this point in time, we're going to try very hard to stay away from giving monthly numbers. Benjamin Fraker: The thing I think about when I think about this real time, give me the exact lease rates that you signed today, I think about the way -- The Street reacts to second derivatives. So we've made the statement today, and it's clear that the second derivative for Camden's portfolio and for the multifamily industry is very positive and on a steep trajectory up. Now what has that done, to the investor expectations? Nothing. So on the other hand, if the second derivative was down, the stocks would crater. And so it's like a really interesting issue. So this idea of giving real-time information of like here's what the lease was today, and here's what it was tomorrow, that kind of thing is just -- there's just too much data out there, and the market reacts to things that -- to me, you need longer-term data, you need more data that is -- that shows the trend going on for better than a day or a week or a month. And so that's why I think the industry is trying to go that direction, even though, like Alex said, we'd like to show you our really good numbers and then that happens in one week, but then people get stressed out about a bad number for a week too. So that's kind of the theory anyway. Operator: And ladies and gentlemen, with that, we'll be ending today's question-and-answer session. I'd like to turn the floor back over to Alex Jessett for any closing comments. Alexander Jessett: Thank you for joining us today, and we look forward to visiting with many of you at the upcoming mean conference season begins in September. Take care. Operator: And with that, we'll be concluding today's conference call and presentation, we do thank you for joining. You may now disconnect your lines. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Camden Property Trust (CPT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Core FFO: Second quarter core FFO of $1.68 per share, $0.01 above the midpoint of guidance. Full-Year Core FFO Guidance: Reaffirmed at $6.75 per share midpoint. Same-Store Revenue Growth: Full-year guidance maintained at 0.5% (excluding California). Same-Store Expense Growth: Improved to 2.5% (excluding California), 50 basis points better than original outlook. Same-Store NOI: Full-year guidance improved to a decline of 0.6% (excluding California), up 30 basis points from original outlook. Rental Rate Growth: Effective new leases down 3.3%, renewals up 2.8%, blended rate growth of negative 0.2% for Q2. Occupancy: Averaged 95.7% in Q2, up from 95.1% in Q1; July occupancy at 95.8%. Turnover: Annualized net turnover of 39% for Q2, consistent with Q2 2025. California Portfolio Sale: Sold 11 operating communities for $1.625 billion, representing a trailing 12-month FFO yield of 5.6% and AFFO yield of 5.2%. Share Repurchases: Repurchased $694 million of Camden common shares at an average price of $105.17 per share, representing a 6.4% FFO yield. Acquisitions: Closed on $645 million of acquisitions with an average age of five years and an FFO yield just under 5%; awarded two additional acquisitions and one land site for $195 million. Net Debt to EBITDA: Pro forma at 4.5 times at the end of July. Warning! GuruFocus has detected 10 Warning Signs with CPT. Is CPT fairly valued? Test your thesis with our free DCF calculator. Release Date: July 31, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Successfully completed the sale of its California portfolio for $1.625 billion, executing a strategic rebalancing into faster-growing Sunbelt markets and repurchasing shares at an attractive discount to NAV. Reported second-quarter core FFO of $1.68 per share, exceeding guidance, driven by stronger-than-anticipated occupancy and improved operating fundamentals. Leasing trends are improving significantly, with signed blended lease rates up 160 basis points sequentially in Q2 and 75% of communities showing positive signed blends in July, up from 55% in Q2. Renewal rate growth is strengthening, with signed renewal increases reaching over 4% in July and renewal offers for August and September averaging 4.2%, positioning the company for continued revenue growth. The company's balance sheet is strong, with pro forma net debt to EBITDA at 4.5 times, and it has enhanced liquidity through a new $350 million term loan and full availability under its credit facilities. The portfolio is now younger and more growth-oriented, with the average age reduced by one year and expectations for lower future recurring CapEx and bad debt expenses. Management is seeing broad-based pricing recovery, with 50% of communities achieving positive effective blends in Q2, increasing to 65% in July, and system-wide signed new leases turning positive for the first time in years. The sale of the California portfolio resulted in parting ways with approximately 100 long-tenured Camden team members, a significant negative impact on the company's workforce. Same-store revenue growth guidance remains modest at 0.5% for the full year, reflecting ongoing challenges in achieving significant rent growth despite improving trends. Same-store NOI is still expected to decline by 0.6% for the full year, indicating that expense pressures and market conditions continue to weigh on profitability. The company is still facing headwinds in certain markets like Austin, Denver, and Phoenix, where new lease growth remains negative, though improving. The strategic rebalancing is only expected to be FFO-neutral in year one, with accretion anticipated only in the short order, limiting immediate earnings growth. The company incurred approximately $15 million in transaction costs related to the California sale, which includes a significant management tax from the City of Los Angeles. Marketing and leasing expenses have increased by double digits year-to-date, driven by higher customer acquisition costs and a strategic push to capture demand during peak leasing season. Q: Can you clarify whether the $1.625 billion California sale price is stated before or after transaction costs and fees, and if before, approximately how much should investors assume?A: Alex Jessett (CEO) confirmed the $1.625 billion is before transaction costs, which are approximately $15 million. Over half of that cost is attributed to a management tax on one transaction in Los Angeles, highlighting the additional expenses associated with operating in that market. Q: Given where the stock is trading, are stock buybacks off the table, and would they require incremental dispositions?A: Ben Fraker (CFO) stated that buying back stock remains the best investment today, given the gap between the stock price and consensus NAV. While the company has maximized tax efficiency through 1031 exchanges, they would lean into buybacks if the discount persists, potentially requiring additional asset sales. Alex Jessett (CEO) added that Camden is a "screaming buy" and they believe in the value of repurchasing shares. Q: You mentioned system-wide signed new leases have been positive a few days in July. Should we assume new leases should be close to flat in July and August, or does it bounce around day-to-day?A: Alex Jessett (CEO) explained that the numbers do bounce around quite a bit, but they are getting close to flat. He clarified that it won't be flat for the entire third quarter, as the peak leasing season typically peaks in late August before seasonal decline in September. However, he emphasized this is the first time in several years they can report positive system-wide new leases, calling it a "wonderful green shoot." Q: At Nareit, you talked about a hockey stick concept of future growth. Are you pulling back on that third-quarter thesis, or is it still intact?A: Alex Jessett (CEO) confirmed they are not pulling back whatsoever. The third quarter is looking "really strong" with tons of green shoots, and they expect it to be an outlier compared to last year. Ben Fraker (CFO) added context, noting the market has a "recency effect" from 41 months of flat or declining rents, but post-financial crisis history shows that when supply and demand balance, growth can be more like a hockey stick than a slow slog. Q: Can you provide an update on concessions across the portfolio, and have you pulled back on using them?A: Laurie Baker (COO) stated that concessions are leveling off, particularly in high-supply areas. While Camden doesn't typically use concessions, they do on a handful of communities with acquisitions or new developments. She highlighted Austin as an example, where occupancy has improved six quarters straight from 94.7% in Q2 2025 to 96.1% this quarter, and currently sits at 96.6% in July, allowing them to burn off concessions and improve pricing. Q: What are you doing on the AI and technology front that could meaningfully drive same-store revenue?A: Alex Jessett (CEO) detailed Camden's three-pronged AI approach: "leadership" (encouraging AI adoption), "crowd" (empowering team members to find solutions), and "lab" (a sandbox for testing). He believes AI can improve renewal percentages, minimize property insurance and workers' comp claims, and optimize utility spend. Every Senior VP meets monthly to discuss AI initiatives, and he expects to discuss "real life, real benefits to the bottom line" by this time next year. Q: Are there any other non-core markets in the portfolio that you could target for sales in the future, maybe becoming a pure-play Sunbelt REIT?A: Alex Jessett (CEO) said the rest of their markets are "like our children, we love them all equally." They have no intention to sell out of any existing markets, but will reduce exposure to their two largest markets, DC Metro and Houston, for portfolio allocation purposes. The rest of the markets are intended for long-term holding. Q: Which markets had the strongest improvement relative to expectations in Q2, and what's the rough contribution from occupancy, rent growth, and ancillary revenue to same-store revenue guidance?A: Alex Jessett (CEO) noted no market was an outlier, but Austin, Denver, and Phoenix are a bit behind. Austin is showing the highest improved momentum market-wide, with signed new leases improving 800 basis points from March to July. Ben Fraker (CFO) added that bad debt is expected to come in around 40 basis points (down from 50 basis points guidance), other income should grow around 3%, and back-half blends will be 1% or north of that. Q: What percentage of leases today are at a gain to lease, and what's the magnitude?A: Alex Jessett (CEO) reported that in July, the portfolio rolled into a loss-to-lease situation for the first time this year, which is a positive direction. They have a slight gain to lease in Austin and a little in Nashville, but the rest of the markets are operating at a loss to lease. This compares favorably to March when only 20% of communities had positive signed new leases versus 50% in July. Q: Can you share the going-in cash NOI yield and the year-two stabilized yield on the seven acquisitions completed in the quarter?A: Stanley Jones (Head of Real Estate Investment) stated the year-one yield is in the high 4s based on current effective rents, with six of the seven acquisitions offering some concessions ranging from none to just over 1.5 months. Underwriting is conservative, assuming no real effective rent growth until 2027-2028, but once concessions are removed over the next 1-1.5 years, there's a path to a yield in the mid-5s. Q: How is development lease-up velocity going on the two projects in lease-up, and what are the expected stabilization yields?A: Alex Jessett (CEO) reported the Village District deal is nearing the end of lease-up and should stabilize at just 6%. For the deals under construction (South Charlotte and Blake), construction costs are coming in dramatically lower than anticipated, which helps the denominator. They expect stabilized yields in the high 5s to around 6% range for these assets. Q: You mentioned July renewals were For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Nearly completed the execution of a $3.25 billion capital reallocation plan, with only $200 million in acquisitions remaining to be identified., selling the entire 11-community California portfolio for $1.625 billion to increase market concentration in high-growth Sunbelt markets while maintaining a presence in existing markets like D.C. Reinvestment strategy utilized $694 million for share repurchases at a 6.4% FFO yield and $645 million for acquisitions of newer Sunbelt assets with an average age of 5 years. The California exit eliminates high regulatory and advocacy spending, which previously reduced that portfolio's annual NOI by approximately 80 basis points. Management identified 'green shoots' in leasing trends, noting that signed blended lease rates improved 160 basis points sequentially in Q2, significantly outpacing the 70 basis point improvement seen in the prior year. Operational performance was driven by stronger-than-anticipated occupancy across stabilized communities, with July occupancy reaching 95.8%. The portfolio now stands as the youngest in the multifamily REIT sector, with expected recurring CapEx per unit to decline by 5% following the disposition. Reaffirmed full-year core FFO guidance midpoint of $6.75 per share, despite the significant volume of moving parts from the California disposition. Updated same-store NOI guidance reflects a 30 basis point improvement (from -0.9% to -0.6%) due to better-than-expected expense control in utilities, insurance, and property taxes. Management anticipates blended rent growth to turn positive in the second half of 2026, projecting rates at or slightly above 1% for Q3 and Q4. The company expects to deploy the remaining $200 million of 1031 exchange proceeds by late Q4 to maximize tax efficiency and avoid a special dividend. Guidance assumes occupancy will remain stable through Q3 before a typical seasonal moderation toward year-end, though management does not expect a repeat of the significant Q4 2025 drop-off. Transaction costs for the California sale totaled approximately $15 million, with over half attributed to specific Los Angeles transfer taxes. Repayment of $900 million in debt from sales proceeds reduced pro forma net debt to EBITDA to 4.5x, strengthening the balance sheet for future development. Bad debt is expected to be reduced by 10 basis points system-wide following the exit from the California market. A new 1-year $350 million unsecured term loan was closed to enhance liquidity while management monitors the bond market for long-term refinancing opportunities. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management views the stock as a 'screaming buy' given the gap between the current price and an estimated NAV of approximately $130. Future buybacks remain an option but would likely require additional asset sales to maintain leverage targets, as the company prefers buybacks over special dividends for returning capital. Austin is showing the highest improved momentum in the portfolio, with signed new leases moving from negative 11% in March to negative 3% in July. Occupancy in Austin has improved for six consecutive quarters, reaching 96.6% in July, allowing management to begin burning off concessions. The company has established an 'AI Lab' to test efficiencies in renewal percentages, insurance claim mitigation, and utility spend analysis. Management expects to report tangible bottom-line benefits from these AI initiatives by the same time next year. Acquisitions were underwritten conservatively with no effective rent growth assumed until 2027 or 2028. Current yields are in the high 4% range but are expected to reach the mid-5% range as concessions are removed over the next 12 to 18 months.

Interested in Camden Property Trust? Here are five stocks we like better. Camden Property Trust exceeded Q2 expectations with Core FFO of $1.68 per share and 95.7% average occupancy. Management reaffirmed its full-year Core FFO guidance midpoint of $6.75 and raised its same-store NOI outlook excluding California. The company completed the $1.625 billion sale of 11 California communities, using proceeds for $645 million of Sun Belt acquisitions, land purchases, share repurchases and roughly $900 million of debt repayment. The repositioning is expected to be FFO-neutral in the first year and accretive thereafter. Leasing trends improved materially: blended effective rent growth excluding California improved to negative 0.2% from negative 1.6% in Q1, while renewal increases exceeded 4% in July. Camden expects positive blended rent growth of about 1% or slightly more in the second half of the year. 3 REITs to Watch as Rate Cuts Ignite a Real Estate Super Cycle Camden Property Trust (NYSE:CPT) reported second-quarter Core FFO of $1.68 per share, exceeding the midpoint of its guidance by $0.01, as occupancy and property operating results outperformed expectations. The apartment REIT also completed the sale of its California portfolio and continued redeploying proceeds into Sun Belt acquisitions, land sites, debt reduction and share repurchases. Chief Financial Officer Ben Fraker said the stronger-than-expected quarterly result was driven primarily by occupancy at stabilized communities. Camden’s second-quarter occupancy averaged 95.7%, up from 95.1% in the first quarter, while July occupancy reached 95.8%. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now 3 Stocks with Upgraded Ratings: Analysts Predict More Upside Management reaffirmed its full-year Core FFO guidance midpoint of $6.75 per share. The company raised its outlook for same-store net operating income, excluding California, due to lower expected expenses while maintaining its same-store revenue growth outlook. Camden completed the sale of 11 California operating communities on July 29 for $1.625 billion. The 19-year-old portfolio generated a trailing-12-month FFO yield of 5.6% and an AFFO yield of 5.2% for Camden, according to Chief Executive Officer Alex Jessett. Transaction costs are expected to total approximately $15 million, including more than half attributable to Los Angeles’ Measure ULA transfer tax on one sale. → Microsoft Just Flipped the AI Spending Narrative Overnight As Home Prices Hit Highs, These Apartment REITs Offer Growth Executive Chairman Ric Campo said the company’s plan was to sell California assets, acquire approximately $1 billion of newer properties in existing markets and use remaining capital for share repurchases. He described the execution as “nearly flawless,” with about $200 million of acquisition properties still to be identified. Camden has used the proceeds across several capital-allocation initiatives: Repurchased $694 million of common shares during the second half of 2025 and first half of 2026 at an average price of $105.17 per share. Completed $645 million of operating-community acquisitions, with an average property age of five years, plus $45 million of land purchases. Received awards for two additional acquisitions and one land site totaling $195 million. Used about $900 million of California-sale proceeds to repay outstanding balances on its line of credit and commercial paper program. → Carrier Earnings Could Send the Stock to a New All-Time High Fraker said the completed investments include seven apartment community acquisitions in Atlanta, Orlando, Nashville, Dallas, Phoenix, Tampa and Charlotte, along with development land in the Raleigh and Tampa suburbs. Camden expects about $200 million of remaining 1031 exchange proceeds to be deployed by late in the fourth quarter. The sale and reinvestment plan is expected to be FFO-neutral in the first year and accretive thereafter, Jessett said. Management expects the newer Sun Belt assets to grow faster than the older California properties that were sold. The company also expects the transaction to reduce recurring capital expenditures per unit by 5% and lower bad debt by 10 basis points. Camden said its pro forma net debt-to-EBITDA ratio stood at 4.5 times at the end of July. Subsequent to quarter-end, the company also closed a one-year, $350 million unsecured term loan to enhance liquidity while it continues to recycle capital. President and Chief Operating Officer Laurie Baker said operating conditions improved across Camden’s 13 current markets. Excluding California, effective new-lease rates declined 3.3% in the second quarter, while renewal rates rose 2.8%, producing blended effective rent growth of negative 0.2%. That result represented a substantial improvement from first-quarter new-lease growth of negative 5.5% and blended growth of negative 1.6%. Baker said blended rent growth turned positive in both June and July. Signed renewal increases reached 3.4% in June and more than 4% in July. Offers sent to residents with August and September lease expirations averaged a 4.2% increase. Annualized net turnover remained at 39%, unchanged from the second quarter of 2025, while move-outs for home purchases were 10.4%. Jessett said approximately half of Camden’s communities had positive signed new leases in July, compared with 20% in March. On an effective basis, 65% of communities posted positive blended rates in July, while 75% were positive on a signed blended basis. He also said average signed new leases across the system had turned positive on several days during July. However, he cautioned that daily pricing can fluctuate and said he did not expect new-lease pricing to be positive for the entire third quarter. For the second half, management expects blended rent growth to be positive, in the range of about 1% or slightly above. Jessett said Camden’s approach has been to prioritize occupancy before pursuing greater pricing power. Camden’s revised same-store outlook, excluding California, calls for 0.5% revenue growth, 2.5% expense growth and a 0.6% NOI decline. The updated NOI outlook improves on the company’s prior expectation for a 0.9% decline, reflecting expense performance that is 50 basis points better than initially expected. Fraker attributed the improvement to lower water consumption, better trash-contract pricing, favorable insurance subrogation recoveries and insurance renewal pricing that was better than anticipated. The company expects third-quarter Core FFO of $1.69 per share at the midpoint, up $0.01 sequentially. Expected gains from same-store operations, interest income, reduced corporate costs and lower interest expense are projected to be mostly offset by lower NOI following the California sale, net of contributions from recent and expected acquisitions. Management also highlighted improving conditions in markets that have faced elevated supply. Baker said Austin occupancy rose to 96.1% in the second quarter from 94.7% a year earlier and reached 96.6% in July. Jessett said Austin signed new-lease declines improved from 11% in March to 3% in July. While Camden intends to modestly reduce its exposure to its two largest markets, Washington, D.C., and Houston, Jessett said the company has no plans to exit any additional existing markets. He said the company continues to evaluate potential new markets but remains focused on locations with sustained population and employment growth. Camden Property Trust is a publicly traded real estate investment trust (REIT) specializing in the ownership, development and management of multifamily residential communities across the United States. The company's core business activities include acquiring land for new construction, overseeing the design and development of garden-style and mid-rise apartment communities, and providing ongoing property management services. Camden's asset management team focuses on maintaining high occupancy levels, resident satisfaction and operational efficiency through consistent leasing, maintenance and community engagement programs. Camden's portfolio encompasses a geographically diversified mix of properties located primarily in high-growth Sun Belt and major metropolitan markets. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Camden Property Trust Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

HOUSTON, July 30, 2026--(BUSINESS WIRE)--Camden Property Trust (NYSE:CPT) (the "Company") announced today operating results for the three and six months ended June 30, 2026. Net Income Attributable to Common Shareholders ("EPS"), Funds from Operations ("FFO"), Core Funds from Operations ("Core FFO"), and Core Adjusted Funds from Operations ("Core AFFO") for the three and six months ended June 30, 2026 are detailed below. A reconciliation of EPS to FFO, Core FFO, and Core AFFO is included in the financial tables accompanying this press release. Sale of California Portfolio As of June 30, 2026, Camden's California portfolio, consisting of 11 operating communities with 3,620 apartment homes, was classified as held for sale and is therefore excluded from the same property results presented below. On July 29, 2026, the Company sold these California communities for an aggregate sales price of approximately $1.625 billion. Approximately $0.9 billion of the proceeds will be used to retire balances outstanding under the Company's unsecured revolving credit facility and commercial paper program. Operating Statistics - Same Property Portfolio (Excluding CA) For 2026, the Company defines same property communities as communities wholly-owned and stabilized since January 1, 2025, excluding communities under redevelopment and properties held for sale. A reconciliation of net income to NOI and same property NOI is included in the financial tables accompanying this press release. Development Activity During the quarter, leasing continued at Camden Village District in Raleigh, NC and we began leasing at Camden South Charlotte in Charlotte, NC. Development Communities - Construction Completed and Project in Lease-Up ($ in millions) Development Communities - Construction Ongoing ($ in millions) Acquisition Activity During the quarter, the Company acquired five apartment home communities and two land parcels. Subsequent to quarter end, Camden acquired two apartment home communities. The tables below show the recent acquisition activity: Share Repurchases During the quarter, Camden repurchased 1,429,136 common shares at an average price of $100.78 per share for a total of $144.1 million. Year to date, Camden repurchased 4,062,166 common shares at an average price of $104.08 for a total of $422.9 million. The Company currently has $297.9 million remaining under its stock repurchase program. Liquidity Analysis As of June 30, 2026, Camden had approximately $287.4 million of liquidity comprised of approximately $44.7 million in cash and cash equivalents, and approximately $242.7 million of availability under its unsecured credit facility and commercial paper program. At quarter end, the Company had approximately $140.1 million left to fund under its existing wholly-owned development pipeline. Subsequent to the quarter end, the Company issued a $350 million unsecured term loan facility with a maturity date of July 2027. Litigation Update During the quarter, the Company entered into a binding term sheet to settle the class action litigation related to the use of a revenue management software and agreed to pay an aggregate of $53.0 million into a settlement fund which received preliminary court approval. The settlement will not impact the Company’s 2026 Core FFO or 2026 Core AFFO as certain legal costs and settlements are excluded from the calculation of these metrics. Earnings Guidance Camden updated its earnings guidance for 2026 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for third quarter 2026 as detailed below. Expected EPS excludes gains, if any, from future real estate transactions. Camden intends to update its earnings guidance to the market on a quarterly basis. Additional information on the Company’s 2026 financial outlook including key assumptions for same property growth and a reconciliation of expected EPS to expected FFO and expected Core FFO are included in the financial tables accompanying this press release. Conference Call Friday, July 31, 2026 at 10:00 AM CT Webcast: https://investors.camdenliving.com Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061; Passcode: 6740665 The Company strongly encourages interested parties to join the call via webcast in order to view any associated videos, slide presentations, etc. The dial-in phone line will be reserved for accredited analysts and investors who plan to pose questions to Management during the Q&A session of the call. Supplemental financial information is available in the Investors section of the Company’s website under Earnings Releases or by calling Camden’s Investor Relations Department at (713) 354-2787. Forward-Looking Statements In addition to historical information, this press release contains forward-looking statements under the federal securities law. These statements are based on current expectations, estimates, and projections about the industry and markets in which Camden operates, management's beliefs, and assumptions made by management. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties which are difficult to predict. Factors which may cause the Company’s actual results or performance to differ materially from those contemplated by forward-looking statements are described under the heading "Risk Factors" in Camden’s Annual Report on Form 10-K and in other filings with the Securities and Exchange Commission (SEC). Forward-looking statements made in today’s press release represent management’s current opinions at the time of this publication, and the Company assumes no obligation to update or supplement these statements because of subsequent events. About Camden Camden Property Trust, an S&P 500 Company, is a real estate company primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns and operates 167 properties containing 56,695 apartment homes across the United States. Upon completion of 3 properties currently under development, the Company’s portfolio will increase to 57,857 apartment homes in 170 properties. Camden has been recognized as one of the 100 Best Companies to Work For® by FORTUNE magazine for 19 consecutive years, most recently ranking #13. For additional information, please contact Camden’s Investor Relations Department at (713) 354-2787 or access our website at camdenliving.com. This document contains certain non-GAAP financial measures management believes are useful in evaluating an equity REIT's performance. Camden's definitions and calculations of non-GAAP financial measures may differ from those used by other REITs, and thus may not be comparable. The non-GAAP financial measures should not be considered as an alternative to net income as an indication of our operating performance, or to net cash provided by operating activities as a measure of our liquidity. FFO The National Association of Real Estate Investment Trusts ("NAREIT") currently defines FFO as net income (calculated in accordance with accounting principles generally accepted in the United States of America ("GAAP"), excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, and adjustments for unconsolidated joint ventures to reflect FFO on the same basis. Our calculation of diluted FFO also assumes conversion of all potentially dilutive securities, including certain non-controlling interests, which are convertible into common shares. We consider FFO to be an appropriate supplemental measure of operating performance because, by excluding gains and losses on dispositions of real estate, impairment write-downs of certain real estate assets, and depreciation, FFO can assist in the comparison of the operating performance of a company’s real estate investments between periods or to different companies. Core FFO Core FFO represents FFO as further adjusted for Non-Core Adjustments. We consider Core FFO to be a helpful supplemental measure of operating performance as it excludes certain items which by their nature are not comparable period over period and therefore tends to obscure actual operating performance. Our definition of Core FFO may differ from other REITs, and there can be no assurance our basis for computing this measure is comparable to other REITs. Core Adjusted FFO In addition to FFO & Core FFO, we compute Core Adjusted FFO ("Core AFFO") as a supplemental measure of operating performance. Core AFFO is calculated utilizing Core FFO less recurring capital expenditures which are necessary to help preserve the value of and maintain the functionality at our communities. Our definition of recurring capital expenditures may differ from other REITs, and there can be no assurance our basis for computing this measure is comparable to other REITs. A reconciliation of FFO to Core FFO and Core AFFO is provided below: Expected FFO & Core FFO Expected FFO and Core FFO is calculated in a method consistent with historical FFO and Core FFO, and is considered appropriate supplemental measures of expected operating performance when compared to expected earnings per common share (EPS). A reconciliation of the ranges provided for diluted EPS to expected FFO and expected Core FFO per diluted share is provided below: Net Operating Income (NOI) NOI is defined by the Company as property revenue less total property expenses. NOI is further detailed in the Components of Property NOI schedules on page 11 of the supplement. The Company considers NOI to be an appropriate supplemental measure of operating performance to net income because it reflects the operating performance of our communities without allocation of corporate level property management overhead or general and administrative costs. Our definition of NOI may differ from other REITs and there can be no assurance our basis for computing this measure is comparable to other REITs. A reconciliation of net income to net operating income is provided below: EBITDAre and Adjusted EBITDAre Earnings Before Interest, Taxes, Depreciation, and Amortization for Real Estate ("EBITDAre") and Adjusted EBITDAre are supplemental measures of our financial performance. EBITDAre is calculated in accordance with the definition adopted by NAREIT as earnings before interest, taxes, depreciation and amortization plus or minus losses and gains from the sale of certain real estate assets, including gains/losses on change of control, plus impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, and adjustments to reflect the Company’s share of EBITDAre of unconsolidated joint ventures. Adjusted EBITDAre represents EBITDAre as further adjusted for non-core items. The Company considers EBITDAre and Adjusted EBITDAre to be appropriate supplemental measures of operating performance to net income because it represents income before non-cash depreciation and the cost of debt, and excludes gains or losses from property dispositions, and impairment write-downs of certain real estate assets. Annualized Adjusted EBITDAre is Adjusted EBITDAre as reported for the period multiplied by 4 for quarter results or 2 for 6 month results. A reconciliation of net income to EBITDAre and adjusted EBITDAre is provided below: Net Debt to Annualized Adjusted EBITDAre The Company believes Net Debt to Annualized Adjusted EBITDAre to be an appropriate supplemental measure of evaluating balance sheet leverage. Net Debt is defined by the Company as the average monthly balance of Total Debt during the period, less the average monthly balance of Cash and Cash Equivalents during the period. The following tables reconcile average Total debt to Net Debt and computes the ratio to Adjusted EBITDAre for the following periods: Net Debt: Net Debt to Annualized Adjusted EBITDAre: View source version on businesswire.com: https://www.businesswire.com/news/home/20260730052798/en/ Contacts Kim Callahan, 713-354-2549

Camden Property Trust CPT is slated to report second-quarter 2026 results on July 30, after market close. The company’s quarterly results are likely to witness a year-over-year decline in revenues and funds from operations (FFO) per share. In the last reported quarter, this residential real estate investment trust (REIT) reported FFO per share of $1.70, delivering a surprise of 1.80%. Results reflected higher same-property net operating income (NOI). In the preceding four quarters, CPT’s FFO per share outpaced the Zacks Consensus Estimate on all occasions, with the average beat being 1.18%. The graph below depicts this surprise history: Camden Property Trust price-eps-surprise | Camden Property Trust Quote In this article, we will dive deep into the U.S. apartment market environment and the company's fundamentals and analyze the factors that might have contributed to its second-quarter 2026 performance. The U.S. multifamily market entered the second half of 2026 with a clearer recovery taking shape, as strong renter demand and a rapidly shrinking supply pipeline began translating into lower vacancy and improving rent growth. According to a Cushman & Wakefield report, net absorption reached roughly 124,600 units, up from 83,500 units in the first quarter and 8% above the prior year, making it the fifth-strongest quarter in nearly 25 years. The supply picture also became more favorable. Approximately 88,000 units were delivered during the quarter, down 27% year over year. Around 475,000 units remained under construction at quarter-end, equal to just 3.5% of existing inventory. Improving demand and slowing supply pushed the national vacancy rate down 35 basis points quarter over quarter to 8.9%, its first move below 9% since 2024. On a trailing four-quarter basis, absorption of approximately 362,000 units exceeded deliveries of about 358,000 units for the first time since early 2022, indicating vacancy is likely to have passed its cyclical peak. The recovery was particularly pronounced in previously overbuilt markets: Austin; Charleston, SC; Savannah, GA; Huntsville, AL; Salt Lake City, UT, and Colorado Springs recorded some of the largest quarterly vacancy declines. Rent growth remains modest but is beginning to improve. National asking rents reached approximately $1,945 per month, up 1.5% year over year, compared with 1.1% growth in the first quarter. The Bay Area led the recovery, with San Francisco rents rising 13%, San Jose 7% and the East Bay 4.8%. Norfolk, VA; Toledo, OH; Reno, NV, and Boise, ID, also posted strong gains. High-supply markets remained softer, with rents still declining in Austin and Sarasota, FL, although the pace of those declines moderated as excess supply was absorbed. Overall, the market appears to be shifting from stabilization into an occupancy-led recovery, with broader rent growth likely as the construction pipeline continues to shrink. Camden is expected to have benefited from gradually improving apartment fundamentals as peak leasing season gained momentum and new supply continued to moderate across its Sun Belt markets. April occupancy increased to approximately 95.4% from 95.1% in the first quarter, while blended lease rates improved by about 100 basis points sequentially. Strong resident retention, historically low turnover and renewal offers in the mid-3% range are likely to have supported revenue stability, although seasonal expense pressure, including higher repair and maintenance costs and annual merit increases, may have weighed on same-store NOI and earnings growth. For the second quarter, management guided to core FFO of $1.65-$1.69 per share, down approximately $0.03 sequentially at the midpoint. The decline is expected to reflect a roughly $0.04 reduction in same-store NOI, as improving revenues are more than offset by seasonal repair and maintenance costs, and annual merit increases, partly cushioned by $0.01 of incremental non-same-store NOI from acquisitions. For the second quarter, the Zacks Consensus Estimate for CPT’s revenues currently stands at $391.7 million, implying a 1.2% decline from the year-ago reported number. However, before the second-quarter earnings release, the company’s activities were not adequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly core FFO per share has been revised southward by a cent to $1.67 over the past week, which lies within the guided range and shows a decline of 1.8% year over year. Our proven model does not conclusively predict a surprise in terms of FFO per share for Camden this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here. Camden currently carries a Zacks Rank of 3 and has an Earnings ESP of -0.78%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Here are two stocks from the broader REIT sector — Extra Space Storage EXR and Highwoods Properties HIW— you may want to consider, as our model shows that these have the right combination of elements to report an FFO beat this quarter. Extra Space Storage is slated to report quarterly numbers on July 28. EXR has an Earnings ESP of +0.39% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Highwoods Properties is slated to report quarterly numbers on July 28. HIW has an Earnings ESP of +0.47% and a Zacks Rank of 3 at present. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Camden Property Trust (CPT) : Free Stock Analysis Report Highwoods Properties, Inc. (HIW) : Free Stock Analysis Report Extra Space Storage Inc (EXR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Camden Property Trust (CPT), based in Houston, Texas, is a multifamily real estate company with a market capitalization of approximately $11.8 billion. The company owns and operates apartment communities across the United States and specializes in leasing, managing, marketing, and maintaining apartment homes. It also provides development, construction, acquisition, redevelopment, and property management services, including retail and office space. CPT is set to report its Q2 earnings on Thursday, July 30, 2026, after the market closes. Ahead of the release, analysts expect the company to post a diluted EPS of $1.67, down 1.8% from $1.70 in the year-ago quarter. However, CPT has exceeded Wall Street's EPS estimates in each of the last four quarters, which is impressive. SpaceX Has Massive Multiyear Put Options Volume As SPCX Falls Below IPO Price Jeff Bezos Says ‘We Don’t Have a Revenue Problem’ in America — Bottom Half Paying Just 3% of Taxes Means ‘We Can Find 3%’ Nebius Stock Sold Off on Meta’s Data Center News. Buy the Dip. Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! For fiscal 2026, analysts expect CPT to report EPS of $6.65, reflecting a 3.3% decline from $6.88 in fiscal 2025. On the contrary, EPS is projected to increase 4.5% year over year to $6.95 in fiscal 2027. CPT stock has posted a marginal gain over the past 52 weeks, underperforming both the S&P 500 Index ($SPX), which returned 20.2%, and the State Street Real Estate Select Sector SPDR ETF (XLRE), which gained 6.6% over the same period. Camden Property Trust announced a second-quarter cash dividend of $1.06 per share on June 15, 2026, payable on July 17 to shareholders of record as of June 30, reinforcing its commitment to returning capital to investors. Analysts remain reasonably bullish on CPT, with the stock holding a "Moderate Buy" consensus rating. Of the 25 analysts covering the stock, seven rate it a "Strong Buy," one rates it a "Moderate Buy," 15 recommend a "Hold," and two rate it a "Strong Sell." Moreover, the average analyst price target of $92.31 implies a marginal upside from the current share price. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com