Camden Property Trust Completes Acquisition of Fund Partnership Interests and Joins S&P 500

Rhea-AI Summary

Camden Property Trust (NYSE:CPT) announced the acquisition of all outstanding partnership interests in its two discretionary investment funds from the Teacher Retirement System of Texas, effective April 1, 2022. The deal involved 22 multifamily communities with 7,247 apartment homes, valued at approximately $2.1 billion. Camden previously held 31.3% of the funds and acquired the remaining 68.7% for about $1.1 billion after assuming $520 million in mortgage debt. Camden will also join the S&P 500 index effective April 4, 2022, further solidifying its market position.

Positive

• Acquisition increases Camden's ownership in the funds from 31.3% to 100%.
• The deal enhances Camden's portfolio with 22 multifamily communities.
• Inclusion in the S&P 500 index boosts company visibility and credibility.

Negative

• Assumed approximately $520 million in secured mortgage debt.

HOUSTON--(BUSINESS WIRE)-- Camden Property Trust (NYSE:CPT) (the “Company”) announced today the acquisition of all outstanding partnership interests in its two discretionary investment funds from Teacher Retirement System of Texas (“TRS”) effective April 1, 2022. The assets involved in this transaction included 22 multifamily communities with 7,247 apartment homes with an average age of 12 years, primarily located in Sunbelt markets across Camden’s portfolio. The purchase price was based upon a gross asset valuation of the Funds of approximately $2.1 billion. Camden previously owned 31.3% of the Funds’ interests and acquired the remaining 68.7% interests through this transaction. Total consideration for the acquisition of TRS’ interests, after adjusting for the assumption of approximately $520 million of secured mortgage debt, was approximately $1.1 billion and was funded through cash on hand and borrowings under the Company’s $900 million unsecured line of credit.

In addition, the Company was named for inclusion in the S&P 500 index effective April 4, 2022.

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.

For additional information, please contact Camden’s Investor Relations Department at (713) 354-2787 or access our website at camdenliving.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220404005621/en/

Kim Callahan, 713-354-2549

Source: Camden Property Trust

FAQ

What was the acquisition by Camden Property Trust about?

Camden Property Trust acquired all outstanding partnership interests in its discretionary investment funds from Teacher Retirement System of Texas, including 22 multifamily communities.

How much did Camden pay for the acquisition of TRS interests?

The total consideration for the acquisition was approximately $1.1 billion after adjusting for mortgage debt.

What is the significance of Camden joining the S&P 500?

Joining the S&P 500 reinforces Camden's market credibility and increases its visibility among investors.

When did Camden Property Trust acquire the partnership interests?

The acquisition was effective on April 1, 2022.

How many apartment homes are included in the acquisition?

The acquisition includes 7,247 apartment homes across 22 multifamily communities.