Camden Property Trust Announces Public Offering of Common Shares

Rhea-AI Summary

Camden Property Trust (NYSE: CPT) announced a public offering of 2,900,000 common shares, intending to use the proceeds to reduce borrowings under its $900 million unsecured line of credit and for general corporate purposes, including financing acquisitions and development activities. The offering is underwritten by BofA Securities and Wells Fargo Securities, with an option for underwriters to purchase an additional 435,000 shares. Camden owns and operates 170 properties comprising 58,055 apartment homes, and expects to expand to 175 properties with 59,828 homes upon completion of current developments.

Positive

• Offering aims to reduce $900 million in borrowings, improving financial stability.
• Funds are intended for acquisitions and development, potentially increasing growth.

Negative

• Dilution of existing shares from the public offering may negatively impact shareholder value.

HOUSTON--(BUSINESS WIRE)-- Camden Property Trust (NYSE: CPT) today announced it is offering 2,900,000 common shares in an underwritten public offering. Camden intends to use the net proceeds to reduce borrowings under its $900 million unsecured line of credit incurred to fund the acquisition from Teacher Retirement System of Texas of its 68.7% interest in two of Camden’s investment funds and for general corporate purposes, which may include financing for acquisitions and funding for development activities. All of the shares are being offered by Camden and will be issued under Camden’s currently effective shelf registration statement filed with the Securities and Exchange Commission.

BofA Securities and Wells Fargo Securities will serve as the joint book-running managers. Camden has also granted the underwriters an option to purchase an additional 435,000 common shares. The underwriters may offer the common shares from time to time for sale in one or more transactions on the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any Camden common shares, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering may be made only by means of a prospectus and a related prospectus supplement, copies of which may be obtained when available from:

BofA Securities, NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte, NC 28255-0001,
Attn: Prospectus Department, or by email at dg.prospectus_requests@bofa.com.

Wells Fargo Securities, Attention: Equity Syndicate Department, 500 West 33rd Street, New York, New York, 10001, or by email at cmclientsupport@wellsfargo.com or by telephone at (800) 326-5897.

Camden Property Trust, an S&P 500 Company, is a real estate company primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns interests in and operates 170 properties containing 58,055 apartment homes across the United States. Upon completion of 5 properties currently under development, the Company’s portfolio will increase to 59,828 apartment homes in 175 properties. Camden has been recognized as one of the 100 Best Companies to Work For® by FORTUNE magazine for 14 consecutive years, most recently ranking #8.

In addition to historical information, this press release contains forward-looking statements under the federal securities law. These statements are based on current expectations, estimates, and projections about the industry and markets in which Camden operates, management's beliefs, and assumptions made by management. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties which are difficult to predict. Factors which may cause Camden’s actual results or performance to differ materially from those contemplated by forward-looking statements are described under the heading “Risk Factors” in Camden’s Annual Report on Form 10-K and in other filings with the Securities and Exchange Commission. Forward-looking statements made in today’s press release represent management’s current opinions at the time of this publication, and Camden assumes no obligation to update or supplement these statements because of subsequent events.

For additional information, please contact Camden's Investor Relations Department at (713) 354-2787.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220407005984/en/

Kim Callahan, 713-354-2549

Source: Camden Property Trust

FAQ

What is Camden Property Trust's recent public offering?

Camden Property Trust is offering 2,900,000 common shares to reduce debt and finance corporate activities.

How will Camden Property Trust use the proceeds from the share offering?

The proceeds will be used primarily to reduce borrowings under its $900 million unsecured line of credit and to finance acquisitions and development.

What is the impact of the public offering on existing shareholders of CPT?

The public offering may lead to dilution of existing shares, potentially affecting shareholder value.

Who is underwriting Camden Property Trust's stock offering?

BofA Securities and Wells Fargo Securities are serving as the joint book-running managers for the offering.

What is the size of the overallotment option in Camden's offering?

The underwriters have an option to purchase an additional 435,000 common shares.