Camden Property Trust Announces 2020 Operating Results, 2021 Financial Outlook, and First Quarter 2021 Dividend

Rhea-AI Summary

Camden Property Trust (CPT) reported operating results for Q4 and FY 2020. Net Income Per Share (EPS) fell to $0.29 from $0.95 in 2019, while Funds from Operations (FFO) decreased to $1.21. A non-cash adjustment and COVID-19 impacts negatively influenced these figures. Revenues dropped 0.1% year-over-year, with expenses rising 8.4%. Despite these challenges, liquidity remains strong with $1.3 billion available. The company also provided earnings guidance for 2021, indicating cautious optimism in a recovering apartment market.

Positive

• Liquidity of approximately $1.3 billion, providing operational stability.
• No scheduled debt maturities until 2022, reducing immediate financial pressure.
• Continued leasing activity with a strong collection rate of 96.4% in January 2021.

Negative

• EPS declined from $0.95 in Q4 2019 to $0.29 in Q4 2020.
• FFO fell from $1.24 in Q4 2019 to $1.21 in Q4 2020.
• COVID-19 related impacts totaled approximately $14.8 million for the year.

Camden Property Trust (NYSE:CPT) (the "Company") announced today operating results for the three and twelve months ended December 31, 2020. Net Income Attributable to Common Shareholders (“EPS”), Funds from Operations (“FFO”), and Adjusted Funds from Operations (“AFFO”) for the three and twelve months ended December 31, 2020 are detailed below. A reconciliation of EPS to FFO is included in the financial tables accompanying this press release.

	Three Months Ended		Twelve Months Ended
	December 31		December 31
Per Diluted Share	2020	2019	2020	2019
EPS	$0.29	$0.95	$1.24	$2.22
FFO	$1.21	$1.24	$4.90	$5.04
AFFO	$1.00	$1.04	$4.13	$4.32

EPS, FFO and AFFO for the three and twelve months ended December 31, 2020 were negatively impacted by a $3.5 million or $0.035 per diluted share non-cash adjustment to retail straight-line rent receivables during the fourth quarter of 2020. In addition, the Company incurred approximately $14.8 million or $0.15 per diluted share of COVID-19 Related Impact for the twelve months ended December 31, 2020.

	Quarterly Growth	Sequential Growth	Year-To-Date Growth
Same Property Results*	4Q20 vs. 4Q19	4Q20 vs. 3Q20	2020 vs. 2019
Revenues	(0.1)%	(0.7)%	1.1%
Expenses	8.4%	(0.9)%	3.8%
Net Operating Income ("NOI")	(4.6)%	(0.5)%	(0.4)%

*Same property results exclude any COVID-19 Related Impact.

Same Property Results	4Q20	4Q19	3Q20
Occupancy	95.5%	96.2%	95.6%

For 2020, the Company defines same property communities as communities owned and stabilized since January 1, 2019, excluding communities under redevelopment and properties held for sale. A reconciliation of net income to NOI and same property NOI is included in the financial tables accompanying this press release.

January Collections

Same Property Scheduled Rents*	January 2021	January 2020	4Q20	4Q19
Collected	96.4%	97.8%	98.6%	97.9%
Deferred/Payment Plan Arranged	—%	—%	—%	—%
Delinquent	3.6%	2.2%	1.4%	2.1%

*Rent is recognized as earned. The Company evaluates collectability on an ongoing basis and any accounts considered uncollectable are recorded against property revenues.

Retail revenues are not included above and comprise approximately 0.6% of total property revenues, excluding the negative impact of the $3.5 million non-cash adjustment to retail straight-line rent receivables during the fourth quarter of 2020. The Company collected 60% and 62% of its retail billings for the fourth quarter of 2020 and January 2021, respectively.

Operating Statistics - Same Property Portfolio

New Lease and Renewal Data - Date Signed (1) (2)	January 2021*	January 2020	4Q20(2)	4Q19(2)
New Lease Rates	(3.1)%	0.7%	(3.9)%	(0.3)%
Renewal Rates	3.0%	5.3%	2.9%	5.1%
Blended Rates	(0.2)%	3.1%	(0.9)%	2.1%
New Leases	1,604	1,417	1,374	1,350
Renewals	1,559	1,531	1,140	1,165
Total Leases	3,163	2,948	2,514	2,515

New Lease and Renewal Data - Date Effective (3) (4)	January 2021*	January 2020	4Q20(4)	4Q19(4)
New Lease Rates	(3.4)%	0.2%	(4.0)%	(0.4)%
Renewal Rates	2.9%	5.0%	2.6%	4.7%
Blended Rates	(1.0)%	2.4%	(1.1)%	1.9%
New Leases	1,540	1,395	1,490	1,398
Renewals	960	1,178	1,150	1,155
Total Leases	2,500	2,573	2,640	2,553

*Data as of February 2, 2021
(1) Average change in same property new lease and renewal rates vs. expiring lease rates when signed.
(2) Data represents average monthly leases signed during the period.
(3) Average change in same property new lease and renewal rates vs. expiring lease rates when effective.
(4) Data represents average monthly leases effective during the period.

Occupancy and Turnover Data	January 2021*	January 2020	4Q20	4Q19
Occupancy	95.7%	96.2%	95.5%	96.2%
Annualized Gross Turnover	46%	46%	46%	44%
Annualized Net Turnover	36%	37%	36%	36%

*Data as of February 2, 2021

Development Activity
During the quarter, construction was completed at Camden RiNo in Denver, CO and Camden Cypress Creek II (JV) in Cypress, TX, and leasing began at Camden North End II in Phoenix, AZ.

Development Communities - Construction Completed and Projects in Lease-Up ($ in millions)

		Total	Total	% Leased
Community Name	Location	Homes	Cost	as of 2/3/2021
Camden Downtown I	Houston, TX	271	$131.2	59 %
Camden RiNo	Denver, CO	233	78.9	70 %
Camden Cypress Creek II (JV)	Cypress, TX	234	32.2	51 %
Total		738	$242.3

Development Communities - Construction Ongoing ($ in millions)

		Total	Total	% Leased
Community Name	Location	Homes	Estimated Cost	as of 2/3/2021
Camden North End II	Phoenix, AZ	343	$90.0	26 %
Camden Lake Eola	Orlando, FL	360	125.0
Camden Buckhead	Atlanta, GA	366	160.0
Camden Hillcrest	San Diego, CA	132	95.0
Camden Atlantic	Plantation, FL	269	100.0
Camden Tempe II	Tempe, AZ	397	115.0
Camden NoDa	Charlotte, NC	387	105.0
Total		2,254	$790.0

Acquisition Activity
During the quarter, Camden acquired 4.1 acres of land in Durham, NC for $27.6 million for the future development of approximately 354 apartment homes.

Liquidity Analysis
As of December 31, 2020, Camden had approximately $1.3 billion of liquidity comprised of approximately $420 million in cash and cash equivalents and no amounts outstanding on its $900 million unsecured credit facility. The Company has no scheduled debt maturities until 2022, and at quarter-end had $325 million left to fund under its existing wholly-owned development pipeline. As of December 31, 2020, Camden had outstanding letters of credit totaling approximately $12 million, which reduced the availability under its unsecured credit facility to $888 million.

Capital Market Transactions
During the quarter, the Company entered into a $40 million two-year unsecured floating rate term loan with an unrelated third party and used the net proceeds, together with cash on hand, to repay its $100 million unsecured term loan which was scheduled to mature in 2022.

Earnings Guidance
Camden provided initial earnings guidance for 2021 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for first quarter 2021 as detailed below.

	1Q21	2021
Per Diluted Share	Range	Range

FAQ

What is Camden Property Trust's EPS for Q4 2020?

Camden Property Trust's EPS for Q4 2020 is $0.29.

How did Camden Property Trust's FFO change in 2020?

Camden's FFO decreased from $5.04 in 2019 to $4.90 in 2020.

What is the liquidity position of Camden Property Trust as of December 31, 2020?

Camden Property Trust had approximately $1.3 billion in liquidity.

Did Camden Property Trust provide earnings guidance for 2021?

Yes, Camden provided initial earnings guidance for 2021 based on market conditions.

What impacts did COVID-19 have on Camden Property Trust's financials?

COVID-19 related impacts amounted to approximately $14.8 million in 2020.