About Camden Development, Inc.

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, North Carolina, Phoenix, Southern California, and Washington, DC. The firm announced it would sell its Las Vegas properties in April 2016 for $630 million.

Operations

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 old.

In addition, Camden provides construction management and general contracting services for third-party investors developing commercial, retail, and residential properties.

Geographic Reach

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. The firm announced it would sell its Las Vegas properties in April 2016 for $630 million.

Financial Performance

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 property valuations.

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 rental income.

Strategy

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.

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Camden Development, Inc.

11 Greenway Plz Ste 2400
Houston, TX 77046-1124
Phone: 1 (713) 354-2500
www.camdenbuildersinc.com

Stats

  • Employer Type: Public
  • Sr V Pres: Steven Kddington
  • Executive Sec: Brandy Miller
  • Pres-trust Mgr: D K Oden

Major Office Locations

  • Houston, TX

Other Locations

  • Scottsdale, AZ
  • Mission Viejo, CA
  • Frisco, TX
  • Herndon, VA

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