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
170 urban and suburban properties with some 60,000 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, while the rest are
in top markets such as Atlanta, Denver, Florida, Las
Vegas, North Carolina, Phoenix, Southern California, and
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 1,000. Its average occupancy rate
was 96% during 2015, and each apartment averaged about 950 square
feet of living space. Its communities are less than 15 years
In addition, Camden provides construction management and general
contracting services for third-party investors developing
commercial, retail, and residential properties.
More than 55% of Camden's properties were located in six markets
during 2015: Houston, Washington DC, Dallas, Las Vegas, Atlanta,
and Raleigh, North Carolina.
Camden's revenues have risen roughly 50% since 2011 mostly as
its rising property valuations have commanded higher rental rates.
Meanwhile, the REIT's net income, while more volatile, has grown
five-fold over the same period as it's grown its revenues and kept
a lid on rising property costs.
The REIT's revenue climbed 5% to $900 million during 2015 mostly
thanks to a 4.1% hike in average rental rates driven by better
Despite solid revenue growth in 2015, Camden's net income fell 14%
to $258 million as it had to pay higher salary and compensation
expenses with the completion of new property units which stemmed
the need for more personnel spending. The REIT's operating cash
levels rose 1% to $423 million thanks to a rise in cash-related
Rather than follow the aggressive property acquisition strategy
other REIT's use to boost rental revenue, Camden prefers to develop
and renovate new and existing properties to drive property
valuations and command higher rental rates. Indeed, between 2011
and 2015, the REIT's average monthly rental rate on its apartments
grew 25% from $1,142 to $1,431 at the end of 2015. Over the same
period, its annual revenues climbed more than 50% while profits
have risen more than five-fold.
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 34 as its core customers as they have the highest propensity to
rent, and it sees this demographic growing.