Camden Property Trust Q1 FY2026 earnings call

1. Announced executive team promotions: Alex Jesset, Lori Baker, and Ben Fraker promoted, with long tenure at Camden. 2. Camden ranked 13th on Fortune Best Place to Work list for 19th consecutive year, 96% of employees say it's a great place to work. 3. Macro case for improving apartment fundamentals strong: New supply peaked and halved in most markets, first quarter apartment net absorption strong. 4. CEO Alex Jesset noted strong first quarter, lowest bad debt since COVID-19, 2026 tax refunds up 10% for middle/higher income earners, markets strong with job growth, population growth, and corporate relocations. 5. California sales process progressing, with strong interest, one buyer in diligence process for entire portfolio. 6. Disposed of a community in Dallas, acquired two apartment communities in Atlanta and Orlando. 7. President and COO Lori Baker mentioned operating performance in line with expectations, slight first quarter outperformance due to timing, April results on track, low turnover, focus on renewals and retention, renewals offers in mid-3% range, commitment to smarter, faster, better with data, AI, etc. 8. CFO Ben Fraker discussed capital markets activity: recast revolving line of credit, issued 10-year bonds, share repurchases of $423 million, first quarter core FFO $1.70 per share, reaffirmed same-store revenue and expense guidance, provided second quarter core FFO guidance.

1. Reaffirmed midpoint of full-year same-store revenue guidance at 0.75%, same-store expense guidance at 3%, same-store NOI guidance at negative 0.5%. 2. Kept midpoint of full year core FFO per share guidance at $6.75. 3. Expected core FFO per share for second quarter of 2026 to be in the range of $1.65 to $1.69, representing a $0.03 per share sequential decline at midpoint, driven by same-store NOI decrease partially offset by additional non-same-store NOI from acquisitions.

Q: Eric Wolf with Citi asked about the ramp expected for the rest of the year and early signs of spread increase.

A: April occupancy around 95.4% vs 95.1% in first quarter, blended rates up about 100 basis points in April, expecting strong third quarter and better fourth quarter as supply absorbed, markets like Atlanta, Dallas, Orlando, Nashville, Raleigh, and southeast Florida showing green shoots. 2.

Q: Jamie Feldman with Wells Fargo asked about concessions.

A: Concessions coming down in most markets as new supply down 50% from peak, one development community in Raleigh offering concession not much over one month. 3.

Q: Austin Warschmidt with KeyBank Capital Markets asked about take rates on renewal leases.

A: Renewal offers in mid 3% range, saw a little price sensitivity early in year, feeling good about conversations, teams focused on explaining costs and product. 4.

Q: Steve Sokwa with Evercore ISI asked about portfolio size and data.

A: Bigger not better, with current scale have enough data to make decisions, no significant improvement in data side from being bigger. 5.

Q: Yana Gallin with Bank of America asked about acquisitions.

A: Evaluating opportunities to redeploy disposition proceeds, cap rates stable in Sunbelt markets for newer, well-located properties in 4.5% to 5% range, not seeing much lease up acquisition opportunities this year. 6.

Q: Rich Anderson with Cantor Fixed Gerald asked about cadence of recovery.

A: Anticipating recovery like post-GFC with several years of growth, cadence of completions in Camden's markets dropping from 200,000 in 2025 to 120 in 2028. 7.

Q: Brad Heffern with RBC Capital Markets asked about first quarter blend not showing normal seasonal pattern.

A: First quarter in line with expectations and guidance, outperformed in overlapping markets with competitors, April results doing well. 8.

Q: Hendel St. Juiced with Mizuho asked about capital deployment and buybacks.

A: Bought back $693 million between 2025 and 26, continue to monitor share price, no additional share repurchases in 2026 guidance but have capacity to do more. 9.

Q: John Kim with BMO Capital Markets asked about selling Southern California portfolio to one buyer.

A: Believed picking one buyer limited execution risk while maximizing proceeds, active in acquisitions, awarded $250 million worth of acquisitions recently. 10.

Q: Alexander Goldfarb with Piper Sandler asked about demand and supply dynamics.

A: Entirely a supply story, demand in markets strong, market supply down 50% over peak, supply down 20%-60% year-over-year in most markets. 11.

Q: Adam Kramer with Morgan Stanley asked about Class A vs Class B and urban vs suburban product.

A: A's vs B's flat, delta in suburban vs urban, apartment supply falling fastest in urban areas, leading to additional pricing power there. 12.

Q: Michael Goldsmith with UBS asked about Houston market.

A: Houston fundamentals fantastic, but consumer sentiment fallen, rent-to-income low, sentiment issue causing slower housing decisions, but consumer has ability to spend more. 13.

Q: Rich Hightower with Barclays asked about revenue management post-real page lawsuit.

A: Revenue management relies on data and human interaction, no negative impact on Camden, full-time revenue management department, software is tool for humans. 14.

Q: David Julian with Goldman Sachs asked about tax refund benefit and April blends.

A: Tax refund benefit not driver of April uptick, driver is typical leasing season and supply absorption. 15.

Q: Alex Kim with Zellman and Associates asked about development vs acquisitions and Denver's Baker.

A: Best uses of capital include share repurchases, then developments and acquisitions toss-up, acquisitions better in some cases, Baker in Denver not started as math not great, will start if area improves.