CPT - Earnings call transcript Q3 2017

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Operator

Good afternoon, good morning and welcome to the Camden Property Trust Third Quarter 2017 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please also note that today's event is being recorded. At this time, I would like to turn the conference call over to Ms. President Relations. Vice Senior Callahan, of Investor Kim Ma'am, ahead. please go

Kim Callahan

thank for morning third quarter Good Camden's XXXX you joining and call. earnings conference

Before filings can forward-looking no risks opinions current SEC be uncertainties cause today's these with differ of about expectations these our to future I Any the that Company obligation we remarks, beliefs. in them. call, These that information could making supplement or statements statements our you and encourage not assumes to Further update from and statements and materially begin guarantees the current and are forward-looking of our found everyone be because we to events. involve on to would on actual represent review management's made based subsequent performance results statements advise expectations. will we like prepared risks and

third reminder, financial on in of Investor section Camden's a is includes this release to As at it available complete be XXXX discussed the which and will reconciliations website quarter our call. earnings camdenliving.com measures non-GAAP

Officer; are today Executive and Chief Alex Oden, Financial President; Camden's and Chairman me Ric Jessett, Campo, Chief Joining Keith Officer.

be email by I'll or brief in complete over call today, time, be that prepared additional have we'd one call Ric phone If remarks respond the At queue additional with the are to with and discuss. the unable then to ask questions everyone the speak questions try we happy to call turn to Campo. you this queue hour. after to We to concludes. your you if our within limit two, will the We rejoin items to

Ric Campo

nine and XX Irma, Thanks, damage. sustained our Kim. of markets Between Camden communities some Harvey in hurricanes

wondering storm riding days Harvey, who'll of Texas and For were out the rain. stop four the we're in

the came to and I riders helped the are when of us neighbors make thank Just mother Irma our when through Camden to made the comes customers, a like who storm. reminding want team it on it say, we coworkers all rain, along just that Rocky hurricane members it through to storms. could I we nature, all our

the improving the team one Our of in the the after time experience display and storm. community to commitment fundamentals XX.X% of XX.X% and and be and Camden had levels, the our expenses. Occupancy destruction absorbed. was our apartment ready Despite other members to next Houston, year. Many from continued apartment owners on today. be supplies to at during strong at homes vast growth shareholders continues and lives markets. full followed the storm displaced storm our driven freezing growing a leaving to increased demographics customers, Revenue pre our move occupancy by Demand brought together. slow levels people lead operators fees to apartment homes levels by for to Harvey into. These Houston moving fourth as before at good favorable other across job should into markets. rental Apartment is and quarter communities our throughout maintained rents

this our in markets. peak of to supply expect We year most

completed we lease quarter, Camden RiNo and construction Camden Victory Lincoln started finished up Denver. in the Dallas, in in on construction During on the we Camden Park Station both

saw equity about development growth. took equity acquisition to which at to non-core Oden. turn development. to properties builders over going while as our developments use We balance strong issued call year properties I'll cycle, completed significant seeking Camden. and X.X opportunities improved the attractive At value market sell the continues add The in of Keith point of of to million conditions merchant XXX real was all term Our acquire prices, see offering billion portfolio. We're pipeline equity long quality to estate this advantage move sheet expect to our the in and keep the strong. the to Last our during we quarter. fund the attractive to their we

Keith Oden

the despite usual by Thanks residents very more the each focused we third thought helping results, quickly our is our than managed two normal. and disruption as caused quarter storms, back with returned possible. really Ric. to pleased get They business to Alex We're other, to on all our going perspective our impact details neighbors to the teams for fourth perfect should walk the you quarter. quarter, of carry storms, the hurricane of when over the solid results the you from that results. through financial the which had our our to of It's we impact on say adjust into a third our

the Houston. had to growths our X.X%, in and X.X%, X.X%, X% X.X% to revenue we quarter, Atlanta around Most of due Orlando sequentially. in Denver gains the and same-store in range this quarter at at X.X% led our markets Orange X.X%. and Diego full expect at the at X% for occupancy of performance, the growth at County terms X.X% year San third by revenue X.X%, primarily Year-to-date recent quarter In XXXX be third X.X% was was to

and at at remained in saw at occupancy X.X% in quarter, XX% for Charlotte, of and with has as month X.X%. this discussed our significant October. even on been revenue a for see Austin decline but X.X%, the we improvement the fourth negative, in last Houston, quarter X% expected the trending conference quarter we As to growth expect as Houston over weaker call, we Florida relatively South

than so leases and XX.X% slightly blending up quarter, the of October third XX.X% averaged we it three a XX.X% the versus trending 'XX, rate at X%. leases of last of average the X.X% for tenths percent in were and increase out quarter a in this X.X what offers were is growth year. During November and new on up which Occupancy October. year X.X% last renewals of the an new far for and in December, up up second is sent of and third third quarter better X.X% quarter of achieved renewal renewals, in

Move-outs last last versus XX% state third the XX% reason Harvey. last the year rates of the October. of Hurricane for top XX.X% remains third to versus that turnover the XX% year, in out year trending no year. remain versus of this or XX% with impact year-to-date out and were Net or been re-location, net home one's So city quarter quarter 'XX saw at and across turnover submarkets residents moving in third Houston purchases quarter that quarter the XX.X% far last slightly XX% versus moving last below XX%. we rates on occupancy is radar XX% 'XX. XX.X% screen after particularly is has The of at Obviously, levels

we XX% a quarter occupancy during on saw occupancy increase we going pre-hurricane now, from remain elevated fourth expect into to XXXX. earlier, and mentioned rates XX.X% and the significant to As over

New to the leases X% leasing at in during improved that Houston negative X% a year in season. started peak our to X% quarter the negative first

apartments with we a be X% lease, As limited year the the the entering of inventory pricing should very range we're to in X% have the the negative to revenue rates. signed time up mentioned, of Rick this currently rather the traditionally to up month and for quarter of per rose leases of We X% X% down but growth in same-store occupancy seeing slower available September, than now so main driver renewals traffic, are range.

turn quarter XXXX February. Camden's in time our for Officer. more the with release We early Houston Jessett, will conjunction on schedule Chief our to this fourth color outlook call I'll At Alex earnings guidance and XXXX provide over Financial release XXXX

Alexander Jessett

on Keith, recent a Thanks, financial brief results before I update and our estate our to move on activities. guidance, real

at RiNo, completed $XX at the construction million development Park Camden Victory development During Camden Lincoln development, reached million $XX construction $XX a an stabilization we in both million and quarter, Denver. third Dallas, at in Station, a Camden started

due as October our Xto this student the sales date sale the December a purchaser. community not and diligence and by other the financing from items subject Hurricane we Harvey, Additionally, anticipated to X. of Closing result Camden housing is guaranteed for Miramar, among is only extended of satisfactory

will included I we the of guidance. discuss As midpoint the this sale impact delayed of later, revised earnings in our have

million proceeds financing the million use including $XX.XX, approximately development for of of we at proceeds the program. of quarter, for million We ATM purposes for issued a and $XXX our during public general the net intend acquisitions net and completed activities. third shares financing offering a of funding through side, net generating additional corporate On price X.XXX $X shares to

has ended assets October our of in recently years, and acquisition $XXX half Our We and outstanding million markets. balances of quarter current million before existing another unsecured we to hand, year front being million-development maturing and line remaining pipeline on XXX be the no with on the of debt cash our credit, no well $XXX developed, until XXXX. next million are a two located approximately of end. targeting anticipate projecting more $XXX begin spent on the construction over active We to development

Our current approximately balance is million. cash $XXX

earnings quarter of midpoint unsecured of issuance, fourth current result equity our bond an a guidance assumes no the As our the transaction longer in of XXXX.

hurricane to hurricane financial a last million Texas Harvey result were Georgia, approximately In expenses and XXXX, Harvey Florida Charlotte, in State on funds XXXX third million operations from or we $X.XX for Moving results, quarter these related per reported results, $X.X a $XXX Included a of $X of the in share. or night, of as the Irma hurricane Atlanta, September and impacted impacted multifamily certain of Carolina communities within multifamily North of our Hurricane throughout In communities and areas. portfolio. our Irma. August the XXXX,

insurance incurred reflect hurricanes recoveries million in expense of Accordingly, communities operating damages. our for multifamily third maintenance operating and with impacted from wholly-owned excluded been results. approximately property the anticipated. a expenses these our Our hurricane quarter These expenses no have same-store these results $X.X corresponding charge included by to

in to storm expenses. in are We administrative other $XXX,XXX also hurricanes, related related recorded incurred general which approximately expenses these

$XXX,XXX of and of recognized and ventures consolidated hurricane-related ventures. communities we Additionally, which joint ownership equity joint multifamily by is interest income incurred recorded of expenses the approximately our in

of our entirely share $X.XXX which our and the corporate-related on than higher FFO, of the of the timing offset than balances, improvement $X.XX XX. from investment expenses higher development of balances. in from share range closed This share these of the storm-related income combination $X.XX of lower been result income communities development of lower by guidance storm-related expenditures, interest leasing Excluding of schedule credit operating resulting share due overhead was equity which primarily from to net $X.XX impact on of to higher line cash lower a XXXX non-same-store and certain communities $X.XX charges, per share. and a of Contained with X.XXX to anticipated anticipated were million anticipated expense prior a and of would than the count interest within our $X.XX as September FFO line our our third each excludes per $X.XXX quarter ahead non-recurring have per midpoint offering cost

quarter. until occur late with operating the the XXXX updated as same-store in our expectations of from growth our portfolio, tightened Entirely to increased the results our Houston result year-to-date and the occupancies quarter. quarter based for were to We've occupancy in full-year of third basis revised same-store XX range not fourth points X.X% our our performance increased and levels throughout expectations Our full-year midpoint the from a FFO Houston operating the in revenue of and we've guidance line as X.X% upon increased X%. for by X.X% and did

currently XX% we the up are quarter from in Keith over fourth As XX.X% year. for of Houston, occupied last mentioned,

basis As X.XX% the range X.X% of by and the for we the X.XX% to to our X expense guidance from anticipated same-store to savings of have expense X.XX%. result midpoint fourth a general tightened quarter, reduced points

FFO XXXX guidance expense the the same-store X.X%. result range to adjusted and points a tightened and X.XX% As the also revenue we adjustments, NOI for and range our tightened guidance per to basis a we've at Last by to X.X% our night, midpoint increased share. XXXX XX full-year of

reduction $X.XX XX our result same-store combined increase recent result $X.XX is partially $X.XX; $X.XXX and third impact of share Housing the to hurricane per a $X.XX midpoint reduction per increase range by of of $X.XXX earned the income increase net operating offering. recognized quarter planned share the development increase Project interest This previously earning's invested This $X.XX higher primarily per we quarter result the which our bond of lower per a in $X.XX share reduction interest net our from $X.XX expense, night, increased guidance from late equity transaction $X.XXX cash XXXX. October, $X.XXX prior as per due communities share the $X.XXX is a shares as Corpus offset of result to income disposition per line combined of a $X.XX. this midpoint third non from of Texas, a outstanding basis-point in of share recognized the additional new million Our the a in on operating to a with mentioned for due equity Christi, offering Camden Miramar of $X.XX a related income, for new result delayed from as expenses the offering, planned from a per balances our share credit lower full-year with a of the Last removal the same-store our Student balances midpoint primarily represents higher in we a provided of is equity $XXX share as in a quarter. and of fourth also originally in

million expected in primarily in to the the fourth fourth the and expenses, disposition share our tax partially planned turnover, quarter appeals, our normal and of $X.XXX to property Housing prior-year driven community lower per of fourth tax or share quarter to from FFO increase driven seasonal normal in range resulting represents $X.XX this of refunds the as non-same-store a increase to approximately from maintenance, X outstanding quarter, we per sequential third offset $X.XX quarter combination hurricane-related debt We share interest in This timing the $X.XX the Houston,$X.XXX approximately share $X.XX property December expense repair impact NOI, in by Miramar the of be from for third decline increase increase within expect refunds. revenue anticipate decrease of and quarter third interest primarily X% seasonal FFO our development $X.XX. by $X primarily and $X.XX per approximate the Camden In result of net quarter. of from quarter in late cash will higher share from The per fourth property X.XXX and by XXXX. issued share be per of of result personnel same-store for communities, million of This our successful certain a higher income sequential fourth by quarter utility, is Community, our share increase report lower partially $X.XX the $X.XX and an per primarily $X.XX Student increase offset third unit expenses, in increase midpoint and the tax shares balances.

quarter we fourth no to Our assumes time, closed open are by year-end. At call guidance questions will acquisitions this the

Operator

question-and-answer Instruction] Citi. question session. this from Our question. we will at Nick time, with comes gentlemen, begin and Ladies the ahead your from go first [Operator Please today Joseph

Nick Joseph

Thanks.

are be to the on mentioned using the so and more seen trending? in You have from proceeds most active opportunities deal, acquisitions rates equity how both markets, you cap today

Ric Campo

Sure.

a in good we focused So, end; Most with to are current what of for really acquisitions have Cap sure. example, the buy June, we sticky pretty markets where discount Buckhead are a Builders cap with the an replacement up; cost. definitely operate discount just balance cap the they're X.X% be if rate all of it see XXmonth in don't find four trying Camden was rates that amount We - bought period. current moving sort going it at not significant not and a still was cost, you Square; of about home down, are are rates that looking Merchant can products the at sheet very we low we for on multifamily. XX% a give replacement you to to is in definitely our capital to opportunities; a in we of on have strength

Nick Joseph

or them to forward? to started if And expecting these going materialize, deals are you

Keith Oden

sell to Absolutely, they that return hurdles, equity, in the they a Builder on internally need have to you and assets. think about when I Merchant to their meter think the order model,

capacity well, Merchant I order so will healthy we sell to a new to pipeline. those to they have do as transactions, reload In think assets need their Builder addition, in

some year We in big pipeline. already but year have a next going seen I this that think is increase be to

Nick Joseph

is and how is are use joint all so you you your capital, of biggest own or this if do big for big of much the it. Thank partner you. own going hopper how the are opportunity, that in or to Do you is the would capital want to use is venture to pipeline, opportunities significant, do you capital the all today, question use your how

Ric Campo

more always to billion to EBIDTA Sure. we over so with any capital. during dollars do that additional with at a number that think create is assets venture a fund ventures to a do pocket capacity from found our to understand, and will or into have so joint partners so and any than use not avoid joint sense our balance the but times Texas acquire, your keep very last deep own keep that we the said, you want her other in debt XXX% We have own current the dip We with don't ventures line all. have new Teachers, so tend Teachers remaining of downturn of venture our makes already a we bottom pocket relationship joint it a we in if we Teachers; just clean tough capital not sheet joint simple balance to during the Texas Texas We moderate

Keith Oden

really with to Ric's some Austin, markets Nick coming XXXX those Obviously, use on where's market, Texas been market and on Houston our finding the and add we oversupply think long-term, in Houston, of Houston would or capacity we bunch assets submarkets, the of markets Charlotte's in and Orlando, so exposure some of basis partner be exposure that are we're point that focus we a not we it example, also point increasing bunch we Teachers mentioned, expect XX/XX to overall about individual there's the from condition and in a obviously of ongoing advantage a or investment right a would at looking opportunity net being an see at know focused Houston just either have attractive that's with where point capital. from a we already at a those into it's but are taking to Dallas, good want own it's matter the our now could the an and we're I the and of exposure opportunities Camden's really so coming.

Nick Joseph

Thanks.

Operator

go from your from question Hightower Our ahead Please comes question Evercore. next Rich with

Rich Hightower

Good afternoon, guys.

lease, versus traditional, of duration First leases on the give after a many were can of composition sort you a and so so portfolio question market of we signed an just tank left new versus rents positioned, in then, where those of leases sort sense the of you us have do today your hurricane is how where Houston of see idea the year-long short to what's speak.

Keith Oden

contractor magnitude home you just not is if that work then realistic, turns storm people most flood and three as think that in the in months apartments the were their obviously we going the in storm Yeah, we the advice it we and days big had had XX% that range, just that occupied did done. approvals of a of and a weeks had we getting short-term immediately and and and damage and the having because we through this to was damage we although warning pretty to reality cautious The storm; water accommodate sound understand ultimately accommodate we're go all have to after is because the process many lease did the component have in your them finding didn't get I out, well-reasoned to trying were homes leases. and people into that so our so

are completed, leases. six I did more their get and the on coming the work in housing most they short-term term the a small not accommodated the now going everything put is a some original on lease six-month portfolios, they have in length did likely the before that a now we've back back that so by in people together permanent in really allowed get our within impact It storm; realization have it's actually home if impacted solution, we leases, pretty to lease, people coming and who can to short-term didn't think of to it's number. were big our issue three- those a nine they're months a already to people to Houston, overall re-extend and we but it have or the be huge not them found want our these be

across our like rates we platform, in X% have as we but were if of frozen you still had running order. to we're revenue for do averages is doing regular Harvey we we're it's of gradually to think that of we the so comps released market up thing did are our at the on prices, only So are the apartments what where ended order. September kind go is at and is right additional we what doing the below throughout thing we revenue we we market which comps month we are have do rents and mentioned we question period really part that now turn rental would and X% relative be it system back it so doing rental the ability, order management, management there that cap second your cap point getting that froze or back that regular Ric is range that The think markets, Houston will look number think as renewal is where to to pretty then rents rates. do cap we XX, and we pre increases in sort will our standard a would not, XX% increases and other expect market so We November procedure, XX% of we to turns think out, of on our in of and our to manual what so here rental where our market the rental quickly. to get pricing a of reference, we somewhere off renewal a do just it in on parallel increases We of to renewal it's back seems that move sort by as operating use with all regular be is of simple

to a if between only things are down in really the work see close is would pretty back minus adjusting higher period pricing down deal so get being move certainly a but fully remedy XX.X will leverage pricing that that dynamics pretty some trade-off I XXXX, so model I pricing price, will move that close of time the the hard model to and is demand over offset just would rate the and according occupied XXXX roll out; the rate to to revenue on we with back doesn't our like do a occupancy we supply be as to see lower normal of to and model you're only happen XXX% is frictional expect our being XX% to to One to point that in to in rates. that's run that that that the you have time is trend is time, and of period way back condition, XX% to some to that through over occupancy going so the to occupancy expect to will

Rich Hightower

your it that and submarket this many specifically sources something just different as thing, is there Thanks just that's Keith, on supply see 'XX two. for source one sort second of depends in in color. I I view. commentary that. My great got I'm it XXXX of an comments Camden's wanted prepared since Sundown we of go data to to the on on markets event in sort peaking I've the a for think but Ric's consults or it back market question in here else,

Ric Campo

used different we multifamily data two sources data for different The completions. sources the

in if into Witten's about has that the but we over much on apartments peaking at numbers, XXXX and a still yes, of look still over Camden's apartments at having I apartments much they over metrics, number about it's than with providers XXXX XXXX, has trouble out their his XXX,XXX, at shortages, originally yet if is you go much and XXX,XXX, are that the you people so, delivered a jobs get scheduled is peaking their a - supply completed getting determined 'XX falls you of in have 'XX, just under so on If being how XXX,XXX, data lot labor of a that to in peek is like there smooth he view numbers wild supply the XXX,XXX it's XXX,XXX to question completions XXXX numbers, number coming footprint, a or have if look because their you looks XXXX if the a clearer so roll do in - little he Axiometrics. there's all they there think and card XXXX, and of how Witten's at Axiometrics' XXX,XXX more rolled

the in is the 'XX. probably difference projected how 'XX of think between I handling they're shifting deliveries and

Rich Hightower

Thanks for the color, Ric.

Operator

Our comes next / Bank from Please of your from with Lynch. America Merrill [indiscernible] question. ahead question go

Unidentified Analyst

thanks time. your for Hi,

that LA, you where South Supply, on you not we Just see verse the Houston Atlanta, Richard's question following markets six views up supply be 'XX. Dallas, Florida, give know on could hoping your to on you be 'XX may or expect maybe top five

Keith Oden

Florida 'XX, apartments that at XX,XXX 'XX; Miami Dallas apartments and Fort to are completions, - emphasis Market, Witten's it more the one you Washington what goes XXXX to market provider to the apartments next in and XXXX. Axiometrics I'm about not that we apartments, the little 'XX; you pretty Houston, Sure. we apartments flat data The and year over in is 'XX those together and about XX,XXX what at XXXXX put By bit XX,XXX stay which giving that DC a in between way, that number, we on add the rolls XX,XXX another in down X,XXX in year. call apartments in drops rolling about this X,XXX XXXX; apartments have that's LA Lauderdale, to our we Southeast have XX,XXX numbers XX,XXX and 'XX apartments

Unidentified Analyst

Atlanta. be, May

Keith Oden

, basically year-over-year. flat apartments to so XX,XXX 'XX, going XX,XXX Atlanta, in

Unidentified Analyst

spike; and Okay any what experiencing just are you markets give of your your you about particularly supply on to could of Atlanta, concession the of you're on it higher specifics talked and what some in levels maybe both Dallas kind seeing one of if front, peers sense Uptown in higher just then markets. concession your the Dallas recently,

Keith Oden

not concessions, have of buildings, a minus door amount biggest cycle about and to they and The you we some it development. that forecasting a as to but In supply builders the two you impact anybody month can with some free BB to quarter share. of Yes, you're can on sort competition markets think one our direct as but deceleration new builder submarkets fourth between don't it's I do players; we it's else's Atlanta, small amount speak seen rent Dallas have opposed rushed kind of the get last months are of properties you and substantial merchant in plus because during know insulated units. but where somebody to a much results, quarter. are XX and think could submarket-driven, see to merchant quarter to I and that so third with fair and very - Dallas, seeing up not we assets be market talking basis far we're plus that the are and to empty this of year located, to between to to when could get generally the are we're is in as markets, those not that seeing be points when fairly in they so we two you the Xth or two last three, clearly be as seen else's have thing certainly is certain period worst concessionary number month grab they haven't free a to months of of a properties are but the leasing Dallas, concession, rational we

Unidentified Analyst

Thank you

Operator

Please question. from go next your Our comes Wurschmidt Austin from KeyBanc Markets. question Capital with ahead

Austin Wurschmidt

thanks Hi, good morning, question. taking the for

at when to a these little terms are of any you a look of flatter that and bit little you of supply, XXXX. risk of be could turning bit some in supply markets that wanted a Just negative the again touch in think that of

Ric Campo

No.

in and 'XX the these think of have same you when that just think have the Atlanta if are I the growth supplies, jobs, and markets terms revenue Are are markets? most markets the park of the you're ball going the that to in these saying growth, in markets is they knocking supply in have the that - you negative Dallas thing. about of job think you out the also

Austin Wurschmidt

specific like Any Austin in markets, Dallas. or

Ric Campo

so, give this point. think to obviously don't prepared are we at We not No. but guidance

Keith Oden

has in taking a a for chunk turnaround you, just in is consideration to so to numbers Camden's - there in actually portfolio we 'XX solid relative just the Witten's Witten's got I XXXX a to data number for big is don't that enough not on into number the we the can I numbers below based are forecast [indiscernible] tell across Ron our revenue see haven't sharp yet, number negative I'm he XXXX he but the not not it XXXX that's that's and he's So platform, reaccelerating certainly probably see but a numbers in gotten Houston Witten anything in glancing work does positive be revenues work and of are - see of that it actually our on XXXX, would Ron point and X.X% what over we from you in don't does.

Austin Wurschmidt

as some Thanks you out one give getting more opportunities your more thinking this investment saying a of in offensive and the the that color your helpful. portfolio just us was to on side underwriting color, Keith, hoping or maybe question that may there. second that's on the on point the today at and just you then the little are bit they Yeah, units could front then off's number be cycle mostly are for

Keith Oden

hasn't type getting able property, So, terms about property in of high constructive is the that that's those properties. to buy there buying reason because in merchant-builder of the we're marketplace out very really been much being more quality around is today the

today, bidders so the XX-plus there bid, on portfolios; that properties product, play start If we for supply, those, property appetite, merchant-builder like embedded to buyers have that. every that into getting question just is about free value-add you highest we and the fewer rent no investor impacted are at space. the in in being look definitely and by There's

list you mean, on looking that of dollars' worth when of we're We were even acquisition wise. have are several I a underwriting. billion a at of long have always not offense major We always list property we pipeline.

and of of offs oriented like, look kind more a may one that. look and portfolios there have there's cats and taking a take terms in portfolios, there's out at there's pretty in there well like, if those shortage out there think don't really has generally a we combination We specific product. at that challenge we the what like and is no a shots we In definitely and what I but are of of rifle more dogs portfolio portfolios that out worked and less portfolio are of we we'll the then there have submarkets we and done as portfolios clearly and past of few well, they've for

Austin Wurschmidt

some the is So have could to of enough, newer even assume the in initial lease-up quality it of be just the gate. deals, product so development accretion out given limited of these small they or fair

Keith Oden

we by less but at X.X you probably think Yeah, means at concessions mechanism to would XX-month the you but than move with we part have than absolutely, cap in I to Square, of the cost what high number out think start Buckhead off, think you do. if out to lower at all when that up it being markets concessions, you look Camden brand forward is but you're did rate and buy quality slightly know you a able at underwriting then replacement you like, otherwise other need that's you embedded about starting that,

suffer a you over sot really of Now, initially. but have return do is IR through to your cash unleveraged time, lower flow good,

Austin Wurschmidt

you. Thank

Operator

ahead your Goldfarb Alexander next question. from question Please with Our from O'Neill. Sandler comes go

Alexander Goldfarb

us as down or the sort where just something just sort far stands give the of Houston there. before Two Bacon like as right morning the but XX,XXX market first, Can storm. that some Good color I of you your you broader set, now; spoke there. apartments guys questions an occupancy was it can is, where us you think something give update competitive

Keith Oden

low little in There taken market the rate, miles, were way, so occupancy be and in XXs in you by and it have vacancy XX,XXX the the put maybe up when folks Houston. the of A are that construction basis the D the to occupancy pretty most and plus market, XXX,XXX the units is properties, market bit, but take high take so XXXX points low the careful and minus the is numbers of I probably then a a properties lot have bit percent for another square it XXs, these across just as big very so we have perspective It's to to up, probably or the increased under because a A,B,C, the somewhere that entire there's from broad with a properties was ones right. you region, very, went sort out street we if very level think XXX apartments of Sure, it's like the about to actually older if of occupancies little inventory, that rate well. the was that not XXX

it This those business to and to the their even though towards Northside properties, as to bigger urban West necessarily have really it gone all of If markets quickly back you flood, homes residential enough go didn't pockets close did those areas, wasn't areas perspective. got was a flood in places where disruption a XXs say new in - commercial where home than those work close the not and not and Oaks, that inventory a to were and affected, so they no a from that the to really There's lift, from single-family got lift in residential a downtown River for got and interestingly were tends low went high Westside, the the see flood. businesses - five about there's to occupancy really flood; the areas there University they and to core downtown have and be the all area, the six homes, was or Eastside, flood their dislocation much the XXs. the vacancy, you where

Alexander Goldfarb

Okay for that demand well all for and help you to year, are repair should of seeing now of more to is rebuild saying the has now the people so, next being the the is Witten been going portfolio coming that so are better tenants, the displaced saying do or all traffic home going flooded demand satisfied? suddenly the that and then home, market overall is Ron regular people you're their tenants out but should - just the are or if by immediate people do apartments portfolio said you're already the people Houston that to came to driven do well why the

Ric Campo

deliveries about at XXXX in see jobs. in job XXXX about he you Witten's the if Houston that's and in better of growth then XX,XXX ratio has at new XX:X Alex, So, so apartments at he of jobs, Houston total that work, than look has

of continued because has at I amount the they and you but going XXXX 'XX number of job much on a you are new probably in for he deliveries, the fourth what to course for get naturally of we is you're probably we've have it's were effect apartments even limited a pretty together and two of forward to be as you're may the again Greater it next than longer year. so carrying, the is happened also that going flood been growth, they between different it's some who Houston, a third demands pretty these real may you it's a imagined growth would carryover but get and the just rather 'XX here pull I next the the of it there flood of the over about and event mismatch pulled rebound, to growth apartments, growth new Now partnership sources than we is Houston and flood, going victims, s other looking to and for directionally, Houston think XXXX, if were so the results, going decent affected in what and forward year that fair into occurred put in have job lower number terms XXXX, be growth in tonne run think using, a or of but a people quarters bigger than giving by he's job different data job these you got the we

Keith Oden

when more of sure that nine, those folks a think do going make piece how able what come over that flood flood some be because the you or in of XX% about infrastructure you the to or might by because they were already of think of impact it's at of flooded three been next they XXXX X what did three equation that normally years funds X fixing to the with didn't homes storm have and growth or are much market also at issues was fixed and initially Harvey I pressure just above get to years, means to people are not you to mitigation insurance; have the the likely thought or thought man be is it's six of like in key people their insurance. added boost the think the that but two months jobs that all folks most overall XX,XXX really house in on folks is deal think I but to really years government of least housing the so complicated pull to be man the and last the couple you a to and going the those months, When have forward XXXX. look job the but of what months would the recovery have

Alexander Goldfarb

Thank you. Okay.

Operator

with Goldman Our Jeff Sachs. Please from go comes [ph] your Bill from next question question. ahead

Unidentified Analyst

to can turning a have revenue same-store submarket growth just you on if just comment question DC, by Hi, that on

Keith Oden

and We you will offline. submarket can to send our stats we can get you we them

Unidentified Analyst

of 'XX. Is you're about worried there any submarkets supply or still in kind to

Keith Oden

think roughly DC like it forecast side got to this somewhere as not going so to in delivered, it around within was the another to year is we XX,XXX fared has our XX,XXX XX,XXX better got to held about jobs, than we so held up of are that we're next which and Northern the that our about apartments DC apartments worried get we supply generally that year, has big being because really of what job supply question with pretty so the geography are most we and are jobs, year; it's for footprint about talked We delivered real next do far, on have relief Metro, as equilibrium. we really okay, XX,XXX that's if The portfolio well, is to operators numbers year Maryland's supply Virginia of get up where be and XX,XXX those do things, well. but going a has was close is what last as probably this long call, growth, the

growth the in for our up and about a we so to somewhere actually for market just this us, well end extremely the rated better a second B-rated first Metro year. kind up we had original in gone you in DC are expectations. We of what and back district than that and guidance We around gotten if what lease revenue year complete improving DC and our area, the originally DC, X% we've quarter was if not in and it's DC go that's to were think

where and XX,XXX I like as are those So, delivered. XXXX; apartments absorb forward it is it the pressure then apartments can we another looks XXXX; where if lot growth think and we comes get being a the projected roll again job XX,XXX

Unidentified Analyst

and question happen? Camden second Thanks need when potentially Houston, could you that what your project on just my downtown construction conditions to start there do and

Ric Campo

the down in a by be start What a the have that we of was it's trial about doesn't timing we lot year, is deliver to going end it the and to great of in it project to market to Harvey going product supply. before terms interesting the that and think being of able we announced are trying

Unidentified Analyst

thanks. Great,

Operator

Babin comes ahead your with from Baird. W. Our Robert next from go Please question question. Drew

Drew Babin

and are Thanks phrasing between What that question back to like. circling what the for gap taking what may quick DC, supplies the rents curious I a was my rents on differently looks effective being and little I gap delivered, is a question; it be the Camden's

Keith Oden

$XX apartments would - to sub depends way high on low in to the district. part in rise products apartments Garden area, all that so the the you it products districts so being you the high from rises new the and the $XX in in spread delivered, between, Walkup the anywhere think be for end Meshfalton surface it's the urban, when of Well, range probably range, that

is it's $X area the and quite kind of all just, that then know, counter are tie note But to we be what You our $X of lease district. advantage new afford, we're would up what Camden's have plus that that, at end about product. about I'll talking in in answer to of question the

XXX entire that method roughly normal $XX, average across in the ramp. our portfolio, the be Our and product average to about $XX, door XXX districts is a will

So, speaking lowest district, the plus a large on units would of per in again end matters in depending the $XX, are, the broadly be mix suburbs how unit $X call the lot, but square. it rounds the $XX

Drew Babin

question my Been there at the exactly say, most any in numbers the bit quite line supply question part, when deceleration there I the quarter. and Miami, top Okay Irma? that helps. impacted for is is, then were of a of And Was would a the I from in the kind timing better further ways or this not, then deviate? goes

Keith Oden

impact had of last working three all be within one all were honestly, have water surge, units that there's on Southeast of in Ivy, where our about get be steamer got risers no question of the in those is, that. those storm days We damage the we that we of no the minor It's supply are portfolio. are really Yeah, but kind specifically that to that one three our so to we it Austin, things, units out three high of some called least our really so I feel that markets. talked in from part really, really easy available Irma it , and places is out, the photos the turns we markets there's knowledge as from, it's we knowledge Florida had of relatively from available, in call. available and to back starting competitive Charlotte no the

in it's quarter. Florida, deceleration are Southeast fourth into we likely the So, they continue

projects. that be this in at and of impacted you struggling I two air are you things do, know, incredible no contribute and which Many all a ultimately questions condominium condominium know are different You Florida, ownership one contributors are take permanent got inner will your home to sales that to point up new large is going numbers there we [indiscernible], and as some during know, the glut of which biggest Southeast light a some is of going scenario. rental, And becomes which by that. are rental on

Ric Campo

for Maria. Orlando card in wild not this Florida is Irma general, the think will this and Florida, Southeast include but I and

a the you concentration come Miami, of some been look from If there's given result market demand of look the and Ricans don't the I it's as in the know that Ricans. they place in increase seems Puerto in there what's Rican's is Puerto of for expect, we Orlando, Puerto that Puerto been on give time and with have about XXX on you XX, actually demand when Rico in Florida, Puerto the a line taken There Florida we largest they find Rican's been scale, that electricity. back expected, have to where live an think already. you helped, that could increase disruption that rather haven't trying And, to, at going Florida to

Drew Babin

you. thank helpful very That's

Operator

Please comes question Michael from from your next question. Our with SunTrust. ahead go Lewis

Michael Lewis

year little first put I I was higher XX% though, to my in question some you might sort If the that revenue think, that is will that? next you, today, your go Do up or the in have there? And, numbers it's thank what more kind I know it's I you place, strength, management guess, this? sort could you helpful, could be rent on or some but if do Hi, already. than market there's you is new it like an less I nonsensical know, wondering a than environment expected the realize of rents to management around, squares Governor's tell

Keith Oden

wouldn't saying this, Again were, pricing the be X% freeze pricing we going the will November prior revenue gap not think to at, about will for permit release new order we'll a kind is, are Sure, in these we by renewals, pricing to whatever looking our that from it X%, we regular recommendations XX, perform of are at market time, do. back, if price the is. it and we clearing manger X.X% probably initially, resulted some ramps, you be find if system, to that. the completely back to us, have cost it we direct if At which on there's

at data about providers telling you the in And as levels. estimate saying still forward you numbers talk into Again XXXX. Harvey what prepared were are where X% what And rent not, Witten's about, to think individual or between to to us, about Harvey, about think is markets, is, again and look Ron what a is are the he are XXXX rents, looking think our pre of post I I pre it's so instructive we Harvey. for in think, anywhere we point impact. are forecasting close delta kind I we was and just look the am rents from now But, and individual the where there's higher if

keep per rates, the separate effective mind, going are up. lease to the revenue from affected, that's of average year, you of that to just what place in sense constructive Because, not X% think that that year, are our magnitude, doesn't, you've the on in or I that if forecast in course growth. that those month over at and of be got of now he run beginning So, the the rolls rains always he got till leases even the so portfolio comes the strike over that it

be different you without you and have rental what to between But, Harvey. pass difference regardless revenue it think careful than to be substantially would I XXXX the it, going rates growth. with So, using have is

guidance can't for exact XXXX. you will to as certainly forecast I our give Now, of but the there, that you part our provide around

Michael Lewis

guidance, or just Houston are you and market outside the Florida, of year? look hurricanes, every question, I give but Susan number My except you. land, for sales their chance wouldn't in most in second store which growth if by a decelerate or to And you next market same America the front the have ad one effected survey revenues

high years nine the You Florida were? of know, point you're almost expectations or you previous behind trending the my from question is, when ahead market storm, what from

Keith Oden

the I mean, supply, country for be it's so, They When demand; That's our we to the deceleration, are two you three out our you why are about years. been year Ryan across know market issue the in are. of the to of the because generally we supply. I market job broke the you leisure, we supply or think peaking of and accordance the it's decelerating what have getting point markets really plenty list budgets the issues; trending markets of have the think appears place. pressure next same is the And that that show in a new have last the function and

So, exactly the the thought we performing way would. are markets they

Michael Lewis

That's brilliant thank you.

Operator

from Nick from with Yulico go please comes Our UBS, your next question ahead question.

Nick Yulico

of know just about package Any for update is type off. Oh from be next to I these those revenue quarter year benefit looking you think tech one what you thanks, rolling same-store might initiatives at off? rolling tech ancillary you and question, get the is since talked you last growth the able package some on new since initiatives are revenue

Keith Oden

I'm quarter with XXXX last that tell would come about not, be meaningful what can anything there's up but I haven't with Yeah, you to we really results. can right talked we share now, this, not that material you achieve

there's of is all Amazon impact things specific. are the form interesting and standpoint future, revenue in We the nothing XXXX kinds kinds of all around a at but things of home looking doing

Nick Yulico

year package tech and off benefit. Okay rolls the that fully this

Ric Campo

where the really you'll major impact. is incremental Yeah, year see the this last

Nick Yulico

it, got Okay thanks.

Operator

go Polaski Please from question. with Advisors. next John Green from question Street comes Our your

John Polaski

accelerating or there in the Houston that is quarter, fourth quarter? year existing currently on Thanks, barrier outside okay. low in panel, third our market First any is pricing of question a is growth seem early it accelerate

Keith Oden

Yeah, have to I I'd to that you do offline, and stat me. of John, markets, I by pass don't don't just front send it in it front in be of we that me glad have when

John Polaski

buy last exactly today's of be and probably held decisions realistic market year, on one hypothetically on could a you And you acquisition would can in number opine if Yeah, opportunity, $X that fine. that's it one next of and billion product the personal acquisitions you in in funds , would pricing would that you find that? if be, disc resources how you terms how billion $X

Keith Oden

that. million that, a And our you EBITDA so fund in we offering, equity obviously ratio, then which about of be dispositions million $XXX when we So, $XXX and we somewhere part in is cash, and would to plus we fund give roughly would the cash minus. having our borrowing have from think well. the to where XXX of would debt about of balance our probably part also today sheet him And that that use and as combination that then million use obviously the

which our to next that, In million on to development pipeline, year. development pipeline, fund spend a XXX we of our addition couple to is have

John Polaski

thanks. Okay

Operator

Our next Please question with from ahead RBC go comes from Wes your Markets. Capital Golladay questions.

Wes Golladay

everyone, that we remain in progressing with Hello South are looking other how markets? still pressure where Charlotte pipe into said, Florida the the you at competitive as east while see XXXX, do the the

Keith Oden

it's markets, and I that growth the us, you to get continue those are much just will supply standpoint. in, things job deliveries Charlotte, pressure think in supply look both projected to to hard from going if of say in better verses with be at Houston, the

see, to That in parts Denver you of it XXXX, the run of than the on you spreads on already have bit the projected likely more those Dallas. probably some our based that growth but for user, rest growth pressure projected of markets, think you are markets job system, to that XXXX pronounced will offspring a better gain widespread would and deliveries just on XXXX. makes to others, little continue equilibrium that affecting the the and spots in I XXXX. based probably worry of are know, in supply for the roughly year, based the number you that in supply Those all right the starting to gets early be to next probably numbers see, probably in some of supply. more be going the you in stages have, supplies be probably Pressure and job would

Wes Golladay

want growth, hard Okay when buying. when more find at underrating broken then and any of but you're taking laborer really to look people job you and job lot to irrespective, you skill the it's are at looking correct conservative markets hire, match,

Ric Campo

pretty as effects see, showing When look who encourage don't going do you I job jobs you'll much, that out most jobs? find economists a think 'XX I 'XX are you start 'XX. you you into if in I big sell grow, mean, start you you think falling growth 'XX look can right? 'XX, substantially and when How and but definitely people those at, can't you the if and economy what concern getting out, go into that's at, if

look at metrics and those we want definitely we markets So which deciding them. to are sub-markets we when which buy

Keith Oden

put around from X.X numbers that's so drip there's we talk Ric's the X.X% but, to to that, following unemployment go X.X labor and And XXXX, coming the now. at little year, to the at to bit year growth just a sometime, 'XX in X.X this little down lower, drops this total which employment that in a in again some point. you company, you even XXXX, it's dropping likely is in market, can Witten's Yeah, forecast are just straight

in view that's your are going up we against. that, constraint are saying, the that of to we not he's So, just be forecasting session his

our, XXXX, to actually has And XXX markets XXXX. population up produce down higher, total In growth across a to he's back XXX Camden's see going the impact than follow that it's as in national he in bigger canvas XXX, since we Fortunately, than jobs higher the average, gotten at coming then, markets got in at platform. off, don't XXX, jobs XXXX. from in our XXX, we

and a data real So, we that's thing. input providers I that's think are real our a real, mean thing yes, it's us giving data a

Wes Golladay

you. thank Okay,

Operator

comes from ahead your question. Vincent Bank. with Our Chao question next go Please Deutsche from

Vincent Chao

at and XX, hurricane, freezers play but in the get immediately to in Hey, would want be renewables do on Houston level the will come any we I Can lot perceived for just a on but a of say to other just thought here to put you'll to the that you you place think call, don't is some gauging I growth. to the obviously be country, the curious rent the how to would know you just optics curious of to optics take the that you that would I'm be manage rentals, if certain just of think or talked you market, I all., average we there kept at XX? I cap market the as the following in rest

Keith Oden

this ultimately, housing. gone good I Yeah, serve have three rate been pricing on to neighbors I sort and get market and we and in back to guess, we that think doesn't it killing of steps to but we little that. continue have market taken above being I do pricing, anybody's beyond interest

And get regular need so, we order be, we back to need that. we do do and to to will

rental years, put for our Houston three this had you plus oversupply experienced negative, oil, entire we've also market last the context we in We to the the declined. in that because have take that of

going two X% years For market to paying a going people X% rent the is we X% we years back and to the growth got one, that and half rent of are paying focus around so, Harvey, day ago. rents Harvey on three we a down or half a rates, somewhere so are line rent motive the two team into were in top at

there's question, that So, not, which we are runs does market charging going you are be for think renting. the you that rate don't to apartments optical

the it are we the up the lot the of going three to in for we revenues higher that line pick X.X portfolio I down going put third to and context; order going think on to in in we X.X% a at the X.X. quarters were top quarter. just see, are get see to to in Houston And, to from

to So somewhere positive, positive has the and pretty really plug it be math, Houston. is

and to third quarter. so going plus pricing, X.X to income market X.X a the rates our the and magnitude will our shift comes time get quarter And of And and up occupied back from X% relative don't negative to, that price a, we're burn they form And along; it alone it quarter. back to sort will we at your has where probably were guess we've of including we the be got sheer, be see, to get to our the my in I rent because extend have portfolio our, that's think, into set airline. get the in is XXXX, that by an our comp - to to to in we case a will fourth and a XX.X% inventory up so market equilibrium nowhere run second plus/minus in in the be

Vincent Chao

make another for X%, thanks your answer expectations the I I to suggest okay, ride, in the for thinking seems to about are to question another you market. DC. want be think Right, is how XXXX that fourth the on which that said, and about way quarter, deceleration just perceptive particular sure numbers

Keith Oden

around Yeah, and the that's And the a second have X% are sounds in say about of quarter are for saying. in the on to little year of the all impact the bit supplies set I X% had top and number pretty line I think December more that's going performed bottom that right, me out analysis, on you us and we I think all guess the is based for last shifts first know, when for deliveries the gain my we that's right. fourth you quarter, coming, that handily third right of aging all asked year, if and the our right up would concept

Vincent Chaookay

driving forms This like that's verses up. of specific deliveries the back sounds the up some market earlier

Keith Oden

to Yes, but our of third you always fourth analysis also, lower X I quarter third, lower seasonally mean in is quarter years XX or third fourth quarter, in growth.

get historically know, fourth our XX entire and basis that's third gross between rate. and So, you portfolio points probably quarter you

Vincent Chaookay

and you. Okay thank

Operator

Our comes question. [indiscernible] ahead question Zelman go from & Associates. Please your next with from

Unidentified Analyst

taking little are on were what it's your over across it the kind that that Was for the that inside seems dynamics you loop, quick, guys, about what's the like games place are occupancy assets of separating pre- outside did just know inside every in have loop, Houston how one thanks the see that of kind you more know the Could frozen on those the tension boost guys you you Hey board, and just you lop out rent and - on work? how there, outside Houston? events there worked? loops. any you and talk time, comparatively Can in the assets occupancy asset in less

Keith Oden

at I pre any could lines inside talking runs frozen and platform. question our of I They board, same and make Harvey freezing, across across frozen to time we am low outside, that's we with everywhere, are see, for period Yeah distinction, when the high didn't the same rise. rise, your entire were so the rates

weakness and rents that mid were So if was to have prior you X% we in new assets. where XX% our the loop our the think where greatest had down those inside apartments about down would and town portfolio been the town across

makes pretty in it high that pricing maintain we those that. had our the but So sense had we now always occupancy to necessarily because adjusted occupancy units,

X% disproportionally sense to happened. that the in asset X.X% more those that what in quarter recovery third the that's negatives the and rents assets recovery were - some to So this still line we that's and assets we and also happened. top to me in that but year-to-date me had were loop this negative would would it assets X% what negative, through X% makes makes that so our We suburban the happen see of in had sense that inside

Unknown Analyst

makes that and see I sense.

capture am at trying that I supplements your expect Just on and with sources Was going catch one didn't equity for your time more is overall get you you that? EBITDA your didn't a view you pretty we much of just would Can how guys in see debt Ric you issuance. today all different How did more little allotment since at level this to equity. there to forward the I the and are to ATM. choosing if debt low about I equities figure look also exercise question the net out yet issue capitals think and you to guys

Keith Oden

balance small the so million very we full you the we Sure, amount issuance was market the the did the Prior to forward to and million on did reason that equity. XXX going time didn't issued we in raised where of expect want a be all can was shares offensive challenge that we that and ATM roughly of many the market X.XXX are we of period block with so an subject advantage acquisition that out have the the long of time that in subject you could and sheets over ATM and and sort take chose strengthen out to to we so a of is go conditions, perspective. dribbling are you program an we we the our from

point where spend see cash balance the won't active you on us until see we us our get you in equity to the So markets. this won't sheet we very

Ric Campo

issue, to And on elected up your under option take regarding the question the not underwriters [indiscernible]. the their

Unknown Analyst

guys opportunistic a just in or in last to deployed of to with there you you you Got towards from have it term said going in me, be be anything is and just do want there issuance that because as you that the is it. that could is follow things up acquisitions particular an capital the know pipeline this

Keith Oden

looking today have constantly earlier, don't at that. As properties are I anything said we about we to discuss specific and

Unknown Analyst

That's thanks lot guys. Alright, a from me. all

Operator

like any we remarks. turn Ladies to and for with that today's gentlemen Ric I'd conclude session. to question-and-answer call comments the over closing back will Campo

Ric Campo

Dallas and thanks of next in you. see today couple your Great, lot thank so weeks, you time we the will for a of in

Operator

thank conference attending. conclude Ladies do does today's and for that you gentlemen, call. We

You may your now disconnect lines.

Camden Property Trust (CPT) 27 Oct 172017 Q3 Earnings call transcript