Camden Property Trust reported third‑quarter 2025 results that included a diluted earnings per share of $1.00, a $0.63 beat over the consensus estimate of $0.37. Diluted funds from operations rose to $1.67 per share, beating the $1.66 midpoint of the consensus range, while core funds from operations reached $1.70 per share, a $0.01 lift over the $1.69 guidance midpoint. Core adjusted funds from operations were $1.43 per share. Revenue totaled $395.7 million, falling $2.8 million short of the $398.5 million consensus estimate, marking a miss of roughly 0.7%. Occupancy held at 95.5%, and bad debt improved to 0.6% from 0.9% a year earlier. Annualized gross turnover fell to 57% from 59%, and net turnover to 44% from 47%.
The earnings beat can be traced to disciplined cost management and lower borrowing costs, which helped offset the revenue shortfall. Strong occupancy and a tighter bad‑debt profile reduced credit‑loss provisions, while the company’s focus on efficient operating leverage kept expenses in check. The revenue miss, however, reflects intensified competition in the multifamily market; new supply in key Sunbelt markets has pressured lease rates, and the company’s pricing power was eroded by a 2.5% decline in new‑lease rates. These headwinds limited top‑line growth even as the portfolio’s cash‑generating ability remained robust.
Management raised the midpoint of its 2025 core FFO guidance from $6.81 to $6.85 per share, citing the quarter’s outperformance and lower-than‑expected borrowing costs. The company also updated its Q4 outlook to a diluted EPS range of $0.33–$0.37, FFO of $1.68–$1.72, and core FFO of $1.71–$1.75, slightly above the prior guidance range. CEO Richard J. Campo noted that the guidance increase reflects confidence in cost control and the ability to maintain profitability amid a competitive leasing environment. The adjustment signals management’s belief that the company can sustain its cash‑flow generation even as revenue growth moderates.
Operational highlights include the sale of two operating communities in Houston and Dallas for $113.5 million, realizing a gain of $85.6 million, and the repurchase of 465,742 shares at an average price of $107.33, spending $50 million and leaving $400 million in the share‑repurchase program. The company’s liquidity remains strong at $796.3 million, comprising $25.9 million in cash and $770.4 million under its unsecured credit facility and commercial paper program. A $269.1 million allocation remains earmarked to fund the development pipeline, which includes three new projects totaling 1,162 homes with an estimated $501 million in construction costs. Net debt‑to‑EBITDA stands at 4.2x, up from 3.9x a year earlier, reflecting the company’s continued focus on capital recycling.
Analysts have trimmed price targets and downgraded the stock to a hold rating, citing the revenue miss and margin compression as concerns. The guidance raise, however, has tempered some of the negative sentiment, as it demonstrates management’s confidence in cost discipline and its ability to navigate a competitive leasing landscape. The company’s strong occupancy, improved credit quality, and disciplined capital allocation position it well for long‑term value creation, even as it faces short‑term pricing pressures in the Sunbelt markets.
Overall, Camden’s Q3 results present a mixed picture: a solid earnings beat driven by cost control and occupancy, a revenue miss driven by competitive leasing, and a cautious but optimistic outlook reflected in the raised guidance. The company’s strategy of selling older, capital‑intensive assets and investing in newer, higher‑yield communities, combined with a robust liquidity position, supports its long‑term growth trajectory while managing near‑term headwinds.
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