Camden Property Trust hums along by investing
in, developing, and operating middle-market and luxury apartment
complexes in about a dozen states. The real estate investment
trust (REIT), which sports a hummingbird logo, has about
190 urban and suburban properties with some 62,000 apartment units.
Its portfolio is made up of both wholly owned and joint-venture
holdings; most communities carry the Camden name. Around
a quarter of the REIT's properties are in Texas, but the company
also has a presence in other top markets such as
Atlanta, Denver, Florida, Las Vegas, North Carolina, Phoenix,
Southern California, and Washington, DC.
Camden's properties typically consist of two- and three-story
buildings with controlled-access gates, swimming pools, a
clubhouse, and fitness facilities. Each property has at least 200
apartments; the largest has about 900. Its average occupancy rate
is 95% , and each apartment averages about 930 square feet of
living space. Its communities are less than 15 years old.
In addition, Camden provides construction management and general
contracting services for third-party investors developing
commercial, retail, and residential properties.
Overall revenues shot up 26% year-over-year in 2012 to $821
million due to a 17% increase in rental revenue and a 24% increase
in property management fees. The average price of rent grew from
$970 in 2011 to $1,045 in 2012.
Profits also grew from $56 million in 2011 to $286 million in
2012 after Camden realized gains on some of its joint ventures and
some other properties during the year.
The multifamily property market has proven to be rather
resilient after the economic downturn. Much of that is due to a
limited supply of new properties being developed or built and a
continuing decline in homeownership rates. The company counts
people ages 18 to 35 as its core customers as they have the highest
propensity to rent, and it sees this demographic growing.
Camden actively manages its property portfolio by regularly
developing and acquiring properties and by selling complexes and
undeveloped land. It bought about 20 new properties during 2012
that added another 6,400 apartments to its portfolio. At the same
time, however, it sold about a dozen apartment complexes that
totaled 5,600 apartments.