CPT - Earnings call transcript Q4 2017

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Operator

Good morning and welcome to the Camden Property Trust Fourth Quarter 2017 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Kim Callahan, Senior Vice President of Investor Relations. ahead. go Please

Kim Callahan

thank earnings and joining fourth Camden’s Good call. you XXXX conference quarter morning for

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

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

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

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

Ric Campo

Bill movie Groundhog me And you Groundhog in of which now, and is the and Day By again. over over Day. morning. relives over this day Good today he always reminds Murray classic understand

like Harvey For have feels yet the homes, not back and by homes area flooded every of into day Day. whose Groundhog their thousands moved neighbors were Houston our

be So Houston done yet much to remains much so area. in and progress made the work has been

thank people days that to had area good that the few not has Camden’s of XX% flooded, the Camden lifted World rating what for uptick new and as live showed do Harvey’s sometimes. communities as we into on the year’s as Houston’s flooded. spirits did our Spring these of share with in great Hurricane prices economic oil All to were that the stepped for I report Fortunately, neighbors want a will XXXX, returned to have as up life flood. Camden the D initial has within declining you year’s Series including will win a Astros’ really market improved year his the The helping in neighbors the normal rating homes Creek last amazing in are improving, Houston’s positive meant carried which Keith relief activity. in business Irma and market-by-market and efforts really to and team and from multifamily Company. card. B over Harvey members that recent impact a what the and

take our really technologies embrace people come technology. the fulltime we from about Texas and customers prices improving in and our million And country. to for forward and will adapter Today, XX,XXX of solid and edge throughout improving grown jobs employees, creating in to to beginning, XX they We better a returns, our at with edge to best technologies the cutting care six provided a our market-to-market employees amazing $XXX a XXX focused year our nearly in customers, now have now lives think that where jobs markets over high help and started experience started have have customers shareholders are the really industry cap stock and We In consecutive to time. with his employees, from market We $XX diversified recognized increasing years also and X,XXX culture for construction work the that embrace Keith I XX out slow next turn Few shareholders to of over growing and with finishes. really with as one cutting importantly, billion, look provided the shareholder XXXX provide better, now, at customers perform the call providing started update company. During began one workers, three on the points multifamily beginning. more X,XXX to XXX years XXth I’ll homes customers, we time. dividends and a provide customer the began are a at and the to homes we now Camden’s the in appreciate. customers companies We order. was to providing Fortune growing public and mark cities been and to our of workforce that list has opportunity X,XXX top-XX continue experience a lives thanks. an of

Keith Oden

use stable I’m as to today’s with ahead. Camden’s markets market in in letter markets Ric. we I’ll going prior each order grade by encounter the be to the Thanks, is our call my or conditions of to address expect we on the Consistent the likely whether that believe review declining best year improving, view time to to on one, years, the well during worst in market our to a assigning as XXXX.

the this our and our majority and provide with same market average growth operations markets of year additional between rate the of We the growth on same letter X% XX% The and our or guidance. XXXX X% quarter to details represent this weighted guidance range year. of midpoint property Following our XX, fourth nearly I’ll anticipate of the at growth markets same X grade revenue X% pool XX overview, in budgeted be property range. our X% will the property received of our markets in higher B of

we stable to for with ranking XXXX rate which top a an Our Southern outlook. California, A goes as

the schedule we strong elevated for each expected new year jobs-to-completions delivery rating created, Denver jobs remain this a has strong earned year for but achieved manageable a outlook. X.X% the new an been XXXX. last with stable top declining year, pace with Denver portfolio the A three California an also X.X% years growth revenue A been X.X years. But over XXX,XXX revenue same times. and the open XX,XXX annual apartments the XX,XXX last we to performer, Approximately one XX,XXX past of tempering Raleigh, Orlando expected from growth rating averaging likely this several get Southern minus supply Our property Phoenix markets putting at outlooks. has new of there level with expect jobs the year. new ratio our and during XXXX. another in will Approximately with units are are

D projected Up the markets job demand from which to delivery and XX,XXX Atlanta for and outlooks. and B XX,XXX year. and on metrics back-to-back and All for have this plus a XX,XXX completed. years units property in X,XXX Job of healthy up over line XX,XXX portfolio coming developments with completions remain been steadily on in with projected rating year. X% conditions with growth achieve been scheduled very is X,XXX Houston, to this from a for steady In is growth XXXX. declining next XX,XXX X,XXX our Tampa, and versus growth growth around new in are improved jobs few currently look are new stable B same these new have apartments with over year XXXX. projected year. last Jumping of is supply each X,XXX XX,XXX also new last with in year has to are year. be operating balanced so in for for revenue the ratings Orlando this jobs for XXXX Job another jobs face new receiving Raleigh, call Phoenix XX,XXX estimates apartments XXXX delivered and this five to to new improving went coming expected spots similar stable both and Completions in years In with XXXX XXXX. supply or to XX,XXX new metrics. past has at Atlanta Tampa, After rankings expected jobs demand strong under results, units with with XX,XXX in Houston to new XXXX is being Job only X,XXX XX,XXX negative year and to line new been XXXX.

in again couple delivered. to significant to New new year. stable with years supply DC the with year DC growth XXXX, less last than a Revenue this Washington rebounded averaged year. for B less drop outlook. receives X.X% bring with our heavy X% than a from of XXXX rating supply an has been portfolio expected then X,XXX this XX,XXX last off XXXX of average should completions units a

year metrics and Dallas X,XXX come Job expected DC Job XXXX. XX,XXX new around last the year our like with area Dallas will to and wave of with mediocre declining level with XXXX be remain power weaker XXXX and year on being this this the a the also XX,XXX. amount same new growth. nearly to been may XXXX We look coming and declining But Austin A to be for XX,XXX year. continued and in has projected. in year earns growth line units outlook, and expect of given slightly start with to call was last in finally apartment the but supply only outlook created similar gave regards to pricing with new well anticipated with rating market jobs X,XXX XXXX demand in supply XX,XXX remain that in jobs in a XX,XXX new B over a another estimates completions created a growth Austin in challenging with delivered XXXX XX,XXX should with a year, should growth property slightly limited. a units year completions XX,XXX XX,XXX but market down this We as new consistent with a lot XXXX B in employment Supply this market. last versus jobs solid year. another of created

improving our and metrics, with outlook. firmed Austin and of average to demand Charlotte our outlook an for X% year. XXXX growth in -- minus Conditions seem below are a bit a supply at expected have for at up to current portfolio B with currently the were revenue X% B is Given this

to Job has Charlotte XXXX X,XXX and in new ‘XX XX,XXX growth ‘XX New amount a jobs with anticipated this and should persistent supply similar been delivered in with X,XXX over units both projected. in accelerate year.

new last portfolio’s see So, Florida, apartments in XXXX our outlook. deceleration economic be achieved our slightly our remain our in than Florida for-sale the portfolio weakness growth with we calls We X.X% compete supply a we year. steady And with South year. the last of as but during should to expect for revenue higher a to continue stable and additional condominiums. C plus for market, XXXX Deliveries will job rental ranks this growth communities from South will and outlook began

As limited in is Houston rating of a a plus growth result, hurricane after we year’s our Harvey. Overall, last X%. to slightly due this expect Florida South year portfolio portfolio up B the X% with from primarily year, to improvement a our we’ve range B recently this for rating, revenue seen

Austin, I to mentioned Florida revenue the being X% markets X% should X% earlier, As year range. X% of majority with both this the and growth the our outliers to achieve South in

our range, expect and a X.X% of Houston. the at improvement again total XXXX growth we X% revenue portfolio most this to same the guidance year to be As property revenue of midpoint growth year-over-year last by compares driven of with result, our actual our

results. strong few year the Now, details XXXX. for full X% quarter quarter was operating our saw ‘XX revenue performance property most recording to Same fourth on of X% growth. and during markets our XXXX X% fourth the X.X% revenue We for growth with

Raleigh over in this as X.X%, versus compared averaged during net X.X%, rate Our leases for homes to XXXX -- levels. purchase X.X%, San were expected Atlanta, Phoenix, trends in preliminary our to X%. at for turnover Diego the last Chief and of of to renewals fourth Tampa and new up At for are of quarter fourth year, that’s year. to a Empire Move-outs results Alex compared out X.X%. XX.X% point, and occupancy Financial always rate fourth the tenth are top each Occupancy XXXX XX% were for XXXX points January for one just quarter from with -- at XX see. the performers were XX.X% Diego/Inland and Orlando XX%, XX.X% March down XX.X% were Rental a XXX Jessett, has being slightly basis San the lower X.X% and blended renewals at for XXXX. was growth, of averaged Officer. similar down turn quarter X.X% at February range. XX.X% XXXX January at and percent, sent a call XX.X% I’ll the the quarter Camden’s the Annual and than at January to good over

Alex Jessett

Keith. Thanks,

results Before I guidance, on update our estate financial our and to on activities. I’ll move a recent provide real brief

During the on Downtown million quarter, a development in we Lincoln construction Camden reached Camden Houston. development million fourth Station, at began Downtown Phase in and $XX a $XXX stabilization Denver, I,

and October years, late its our in the student Corpus strategic lease yield yield for XX.X%. we with constructed a to years at nature of to owned year We sale’s completed the this was use, and the $XXX remaining. And under FFO unsecured XX with driven age, large capital-intensive the is XXXX. its Gulf and of quarter, this asset and XX XXX-unit successful This our was which in the was no balances located disposition ended the very lease on just Camden the Subsequent At District the purchased concrete housing St. shareholders, a quarter-end, yield sell given hand location Florida, over Additionally, of use approximately maturing short and in generating represents internal Miramar on of its building made and no of Petersburg, yield Miramar, Coast. asset rate We decision a in on XX.X% since disposition Christi, this X%. one investment line until million $XXX Pier quarter million. of of duration only Camden just this outstanding community to on the of a We million return. newly part This due AFFO over by we credit, Camden FFO ground an age, X.X% disposition XXXX. built of $XX Camden past price, cash unleveraged Texas. XX-storey directly purchased location debt of an remaining our ground the for and

Camden our $XXX quarter Our due payment taxes of disproportionally which current January, dividend of District, and the purchasing January property approximately after the fourth cash payment balance are million. XXXX Pier in is

of result forecast the DC Camden slightly per in million as occurred with financial night, funds higher share. $X.XX our December the on fourth by prior to of Miramar per compared or approximately store same in $X.XX operations $X.XXX community. quarter our expense insurance operating $X.XX from $X.XXX store guidance North a and housing sale income, freeze by midpoint Xst. estimated damages our sale December delayed net Carolina the of to on reported share Georgia, offset non-same a the the for in Moving $X.XX Contained to driven XXth This communities, results. as at our Last the student of we area for of approximately of share, $XXX.X within XXXX line of a range per FFO was higher

Moving guidance. XXXX earnings on to

supplemental fourth financial key the for of details our XXXX assumptions outlook. You driving refer our to page package quarter can XX on

We $X.XX per increase XX,XXX per $X.XX a FFO guidance the assumptions $X.XX $X.XX to portfolio. in be per expect XXXX the approximate unit increase $X.XX share within share of the $X.XX to to representing increase as our performance of per from at XXXX are diluted follows. midpoint a with this components of share store our midpoint results. of of An range The FFO and share related in a FFO same major our range

new per due hurricane of approximately approximate same assumed operating FFO NOI to charges. growth net our is combination X% nature per share our FFO and to to an to We X.X% per of construction to offering, of development of reduction resulting our approximately driven X.X%. the X.X% X.X% share share approximate expense of X.X% in of X.X% our as Each related share FFO disposition per store net share throughout to per by Pier are and expecting offset growth yield which our Camden lower cash share approximately amortization incremental higher in increase in year, acquisitions outstanding the An decrease June and lower $X.XX equity in to completed September per loss January per from store our X.X% year implementation share XXXX. to acquisition due the expected approximate growth resulting FFO and $XXX of related the a income stabilized line operating million approximate forma lease-up revenue back from per assumed one partially increase in $X.XX Miramar additional increase XXXX. in from store of for our approximate of primarily of a per $X.XX same development system the net communities on FFO XXXX operating the in FFO spread share income shares income is FFO. depreciation community, resulting increase from cumulative four XXXX, XXXX quarter an increase An communities the NOI result share an an $X.XX during FFO, related third income fees, and District, the non-same This from nonrecurring additional come in properties contribution in $X.XX FFO by to XXXX resulting XXXX, stabilized acquisition pro to related Camden $X.XX in decrease $X.XX and $X.XX in from interest an $X.XX one office lower of an the of from third-party in corporate from and increase balances, XXXX in due and

combination and which a we a in general fees from in a be construction-related of periods. prior receive We measures anticipating to legal of will impact of expense control resulting in reimbursement the are overhead expenses settlement flat XXXX, cost

three interest points line of of to interest in the for in XXXX XXXX of developments plus interest line borrowings debt flat anticipate XXXX. anticipating June. The LIBOR unsecured higher under XX capitalized floats offset resulting basis of by credit combined under and in credit construction and lower credit with is XXXX three rate in our completion of also expense We’re of repayment amounts beginning draws as our XXXX our the in be of developments at we line from

half we anticipate and of of we rate X.X% with approximately debt interest maturity, million in million with debt rate of rate repaying secured the fixed Additionally, interest floating an of repayment of at an year, anticipated rate $XXX the secured X.X% second $XXX in XXXX. anticipate late

anticipate Our penalties. late in current resulting not issuing have at we partially $XXX swaps, all-in this anticipate In forward does guidance of rate debt locking of any any We into million and in an XXXX currently early of XX-year unsecured X.XX%. prepayments entered $XXX approximately of X.XX%. starting at the million offering, anticipation debt treasury

X.X% On of primarily X.X% our increase the benefits XX% -- growth to due is store expenses operating a taxes. of XXXX store same X.X%. in factors. total are by to increase range salaries and and two anticipated benefits represent our for result expense increases This same and and to is of Salaries

current making in could to First, resulting tough effects the are up assessment of anticipated in our of tax anticipated represent is trend our is tightening low appropriate. Property general with and in responsive is increases in year this XXXX unusually increase third a total benefit second, were tax I’ve and prior The calls to the related healthcare and in refunds just over The In being X.X%. X% X%. where and we did increase expenses two-year continue. the prior of for amounts core, operating not X.X% our wage success in from due expenses said benefits market-driven adjustments And on than at expenses remaining result year our and projected year appeals. We trend in self-insured less are we protests to in had of XXXX. that growth the at believe salaries properties. XXXX discussed past experienced and I are average to increase averaging time reduction labor expected low, our trading this benefits year-over-year XXXX, be salaries and be of unusually XXXX XXXX taxes a protests. XXXX comparison.

As by property compared of our result original as to year expense increased XXXX’s X.X%. X.X% tax full a budget

do do not in XXXX. anticipate in Although we received refunds anticipate further we levels reaching tax XXXX, the

of previously XX Excluding less X% property at our taxes, to package and of details not increase aggregate. mentioned. level anticipated salaries benefits are Page expenses in and assumptions other the the than also our remainder supplemental I’ve

late million earnings we significant guidance, starts anticipating of $XXX midpoint quarter $XXX million the year. on-balance the year first spread XXXX. $XXX guidance also anticipating the we’re development our dispositions in at to and sheet We’re impact no night, with provided for to million throughout the of Last in

increases, is trends Xst offset annual sequential the of in within quarter typical XXXX, result seasonal represents student is accrual amount, onsite increases share the increase the of an the same-store higher $X.XX $X.XX the expect refunds We approximate for decrease net sequential to in $X.XX share taxes, and housing of NOI to primarily both property fourth are $X.XXX $X.XXX $X.XX primarily of mentioned These of range to operating community. $X.XXX due in to on of in The FFO timing same-store other our is share of including expense of in which to an tax per by attributable FFO per each Of year. partially quarter quarter fourth first reset per same-store to resulting in a increases. income. due midpoint disposition be of tax same-store this remaining The from sequential decrease $X.XX. decrease the our salary slight January the decrease from operating property revenues, previously approximate XXXX expenses operating increases the due

acquisition reimbursement overhead sheet partially increases a months occupancy the increase from community term to is partially the this school per to the $X.XX in of decrease during per And and corporate an and expenses, offset timing approximate finally, the during due fees, mentioned at of combined periods, legal in FFO a of but in offset $X.XXX an resulting were FFO by the construction cash normal year events. in NOI As income This certain EBITDA debt $X.XX and interest anticipated times the XX%, at lower and assets third-party fees X.X net debt NOI, strong be $X.XXX significantly and charge share with approximate X.X reminder, summer of combination strong of by in decrease aggregate declined coverage share and fixed real is at decrease from approximate lower fixed expense an and debt balances. gross of times, unencumbered, XX% at expense to balance compensation rates. our previously prior beginning at secured ratio our XX% resulting our to lower assets

with developments $XXX lease-up have open We $XXX the to left of in construction questions. fund. to At time, under we’ll coming up million this call million or

Operator

Nick the [Operator We’ll session. question-and-answer go Our first Please comes Joseph with ahead. now from Instructions] begin Citi. question

Nick Joseph

you you’re and year are pricing Maybe that dependent job of terms underlying for then, just kind occupancy? X% Thanks. starting on And number, how new occupancy? growth just with Houston. into renewal that revenue of assumption just growth the give you such coming and assumptions Could given with XX,XXX in us high generally, that the

Keith Oden

Yes.

our the the at in And course Houston. over we plan, better obviously, We’re little occupancy that to that expect still do than running XX%, moderate in of year.

to year normal XX%. something to what expect to end at closer would XX in we like Houston, the would look So,

three-month were in of a primary short-term giving were call And it as in rental and of and cases, long people lease that’s that we this the guidance magnitude terms homes, three very and coming most the the kind order. felt in So, lease terms cautious true. people was definitely, was we out we very -- like displaced still in such we their talked not over in be were one to really months back residence are through slog to who inquiring apartment doable be of that going from that will terms, turned who the process things was just do about as getting in believe a time their of down event about of last it our come

cases, into actually six, what we’re see to turn unfortunately, as as many we many a for three think in months I a folks. to lot actually probably but what’s to not that was -- going going thought is year, of it’s nine

shift the anticipate we’ve of that that So, did tried in terms our best here and size try will displacement that to uncharted we but degree the we’ve market, -- fence waters a of seen. impact in happen Houston of when around to it. we’re But, pretty to a with put

we back down closer we’ll think So, to XX%. XX.X trend to

the at then we’re In at around we’re for leases overall and doing doing flat renewals, right and now, terms of basically new somewhere renewals lease X% Houston.

So, We that’s X%. somewhere year. throughout range think, the we’ll that in stay

our the next Houston think, same for for guesstimate is I the range in revenue growth full X% year. store year

tasks ever was that’s we’re trying So challenging the moving all where think with the have teams been it that parts. to you up. we forecasting anticipate our going revenue more to that end one of But I just will faced tell

that because of some we supply variability we’ve a each that’s on only been bit going As less XX,XXX, to the see XXXX over good I is and news again the of think of of exposed got compares in unwind and we’ve for than last delivered apartments to years. a for primarily We three about had roughly expect XX,XXX we far X,XXX time. currently. to the that the completed -- been But, Houston the in as the XX,XXX overhang care has and mean, jobs, lot little probably clearly, to have dependency past, we’re number that in taken to

of to more price of that there vibrancy before oil, economy. were and the optimism lot the optimism front, we’ve supply on a Houston lot a So, a and even most seen be more the overall about recent relief lot Those uptick forecasts the the jobs. in XX,XXX just in seems

a So, got for I we’ve plan for think XXXX. overall, good Houston

Nick Joseph

was XXXX’s and the assumed XXXX? on store same tech impact expense just, then, revenue in of then, rollout and final NOI, package what Thanks. And the what’s the impact

Alex Jessett

Sure.

XXXX, NOI XX right points, basis right revenue was around expenses was around XXX; for was So, came XX. in, numbers and about

is that us expenses positive -- XXXX is actually an and For NOI because our XX XX revenue points we XX points, basis positive of some redone to contracts, basis a basis points. gets right around have it’s about

Operator

is Bank go Merrill of Please Juan America question next Our Lynch. Sanabria from ahead. with

Juan Sanabria

you hoping could you Just of talk a have the bit today. pipeline little kind acquisition about the environment,

you the color and you guys out. seeing? said are it’s just in what on to But, are in But, any allocate what slow you’re be and pricing you equity acquisition raised expect the seeing markets to think, You spread the been evenly I what looking that. fall you at?

Ric Campo

competitive. continues just Multi is X,XXX in was peaked and biggest the very NMHC, Sure. was the to and there of National meeting back they’ve multifamily competitive, I The acquisition Housing people; market got were I like ever in we X,XXX Orlando . in think had from We space. people the it Chairman at Orlando When be meeting very Council

sort people slowing a rates been rent -- of it rates multifamily of has buying add. it’s fixing have because that up is in their of and core I so most on is driven really capital the -- because has, a still tough and then value lower or then last a interesting and creating sort investing in to been in that growth year numbers. it’s part the however the have there focused the slowing So, add growth hit proposition, you for capital mean, on core slowing around cap there because IRR country NOIs that’s that of is unlevered been on older idea of lot add is the The it of And of property very value value primarily capital time interesting and significant. markets, the

you that think going this are competitive continued have year. a environment I to

make up lower focus, The lots sure concessions, and some yet. Atlanta have in properties and has to And And more now we could the property up like lots out we not lease-up, comfortable. we fit are last buying buy yield is go a in that to our concessions they then, bought that come finish strategy. then and cost, looked the are into bringing to acquire below because capital. Camden in leased because we properties. bought, that want replacement our in once where lease-up sort below year scenarios, off where we go we’re cost one we Pete challenge at generally ST. strategy and of move just have at going customer been We have embedded we and replacement start rates putting there fully they are we of the cap it lower those We

we is happening to in of probably sale to of think, queuing market. of kind this I year people the terms to We all are last happens sale that given assets up was in to investors see year market the sort there XX% positioning XX% now think, assets than are there’s more and are going sell to where be what cycle. what’s the in

we we fair So, most be good, get will our markets where and in think or we share. The the markets of for are markets want to regions fit underrepresented growth prospects our that we where long-term are the category.

sweet XX we months. as markets within lease-up our next agnostic so, can to of where are driving higher the yields then about cost, we spot up as we below XX And of well replacement and the buy that over hit sort really

Juan Sanabria

just talk recently markets revenues the then, expect well? of markets in you you’re you seeing for those what leases -- on of the on those across Dallas kind as and same-store could and And trajectory new in hoping was kind I Atlanta, two about

Keith Oden

Juan. I’m Dallas Atlanta? Was and it So, sorry,

Juan Sanabria

sir. Yes,

Keith Oden

Okay.

to new really year going our see to a be another have apartments B growth absorbed. Dallas and we too as to delivered that need So, and just this going strong there’s strictly declining, that’s but be many of just on supplier result of employment year, that’s rating the

growth ended and year. X% last this revenue around in X.X% we year, at about we’ll Dallas, So, be

just the year, if you’re revenue again, last bit and think for And was got from decelerating a little two market. almost X% we X.X% full year, -- last we’ve and we’ve that overall between certainly, a the X% just a for Atlanta strength seen in years. that to for year good a it’s still have and the B Dallas, plus stable we So, XXXX. Atlanta, comparing over as

apartments both So, ratio but to the okay the again, results overall X biased terms towards of solid, too year, many those X in bit relative a markets. good little of long-term, in to still

Operator

KeyBanc Wurschmidt next Capital ahead. from with Markets. go is question The Please Austin

Austin Wurschmidt

And you’re there. markets thinking share you’re rate. underrepresented. returns mentioned terms about what anything move missed in then, you of curious base Just sure the in Can market those the today you are? share if given on also how Not recent I focused

Ric Campo

Sure.

in If NOI like in. high we’re we’ve those we we of out or you concentrations Tampa, But, like under of if have, look X% Phoenix, at comes our X% Orlando have our markets; biggest markets Washington at and Houston. in represented DC you look where markets

of in of just just and try the your If percentage see you the at it’s we first have And, little market part -- just kind to question fill we exposure. look where you supplement less of was? NOIs,

Austin Wurschmidt

today in how the about rate? the move with thinking returns Just recent you’re base

Ric Campo

a think thing really treasury funding anyway, they the and treasure is the remain because people when cap the rate XX-year think one. floating that’s a debt curve of fourth thing about make most you is mistake I increasing cap people is important to The not is the the probably rates cost rate XX-year, the a that that though rates, it’s -- Fannie. on still of Mae Mac do Fannie side liquidity deep is lots you to acquisition. and that Freddie market continues marketplace that the any that have is equity financing life that are you’ve want companies reason today, the make liquidity, wall to And And price companies. on driver asset, institutions they asset life able financial including of and there -- number apartments, very actually make in who fund still loans because one capital to drives flattening number treasury investment. they what as of be cap and the is with But, very Freddie drives of debt fairly the XX-year the that And about in rates; a think sticky, The the cheaper interesting floating And Sure. think got there’s than which now rates. are need even when cap well. of to so is lot

this So, and of fundamentals. marketplace going cycle, you into we been we’ve the and the thing it’s even rates. eight know part have cap now the recovery The that years reasonable cycle, we’re supply though liquidity still next supply And demand since in that latter demand in drives economics. is

a that all environment. markets not recessionary are and in negative You trending don’t you’re have

supply reduction what you’re So, land have you out reasonably on a and well. of look looks if the new And believe and because you. that prices in to into pressure demand of development going ‘XX costs lots and and folks ‘XX, have

is in of baby think hope look going down to across years to with continues at have over view So, it boomers, whether millennials, when every an the be board. cohort good group, supply few I be increase that there’s apartments to or really going with that that and demand millennials rent and next the we look you propensity --

going a a As demand terms olders for XXXX in increase the this propensity and about propensity you very lower share And and today, a to high apartments same XX in to there’s matter between the millennials those. have as is, of for of people fact, have have millennials. really whole of older market on but market the lot interesting thing rate XX which is rent, for

to an for having we’ve rent four those you years, having in have or XX really how years. in look an for increase people, which you model last rate to if -- those, that increase can capture the really uptick this the have for demand nice you been or in XX three forward next propensity So, in

and are So the of The is supply drives are feeling. is what’s XX-year driving issue that inflation incredibly we’re today pressure cap competitors low our big And which rates. unemployment inflation, all and good. wage next and feeling demand

getting environment, to And think those short-term the short-term and maybe leases supports I thinking are leases. we’re ability raise not think thinking inflationary on it’s back which people so, rents I that deflationary, they’re to an

you XX-year, equation, So, last to which XX-year the is relative the is the interest even still at long-term piece today the it hit is what then, right, low of very rate.

going like multifamily So, anything, the competitive like maybe because on inflation asset. go pricing a is the equation inflation think going to they’re you when at start I to well, for I more to putting asset all. investors, an it’s change protected table If get don’t should

-- shock I know tenure an XX-year said, that see is economic all something don’t the and we something changes price I on a much don’t it’s see be environment and unless that rates out perspective. supply given side there So, demand competitive the to cap dramatically don’t or going moving from

Austin Wurschmidt

portfolio depths, the we through we’re that there’s do wall year guess to fact point, something think more and that appreciate I potential the -- today, detailed you be response maturities, in you’d I deals follow-up, the the given And there. interested liquidity first the a as in? CMBS this that of a see market the is

Ric Campo

always the that’s often and The on we’re other -- you activities. to these portfolio looking in and you think, we’re have that times you deals the with sometimes everything, I ideal. have portfolio generally at take interested not you But, choose deals one-offs. want and whether challenge different sort hand, all there’s is to whole thing a of have

going serving -- than to as primarily, have side of in And the merchant assets given you because as are took of you definitely to a that which is could has had built, there haven’t and have sheets country it market longer on they had builder trouble the lack because fast think, build of of do. the because builders the an how because because the holding get delay inventory, feathering year usually I when construction longer market had good in across labor. is properties merchant been, is sort everybody the which balance flooded think we -- reloading that think having I about sales model be increase are in it the this their

play, equity that order funds, have equity of unwinding equation merchant do their do for which the though, have So, builders they are next in with have And have to you. to few they also reload have In are and to they the said there is them side funds other in properties, what with that you deals, that full. and sell.

of assets hold to too hold, are up. levered want too don’t of going they long that their start they so, longer down, And prices sort IRR because going dramatically not sort assuming

sales, portfolio look probably market that’s and are the it more more think we going driving sales, all. I at so, to to And

Operator

is question Please John next go from with BMO Capital Our ahead. Kim Markets.

John Kim

sequentially you Did pushing that quarter focus all Can that your you rental grain purposely Your goes average explain of pretty monthly the rent this much on against occupancy? dynamic? and the increased peers. versus of rates just

Keith Oden

So, in footprint. of be the increase sequential And our just that a the Houston going fourth We X% as down biggest could were Houston was of quarter a reversal quarter. third call, the pretty late XX% still on had third rental Houston thinking it’s what obviously, on from and portfolio was that in flip-flopping John, second in change and the we to the even as year were our in decent we -- for revenues. quarter

portfolio typically else our our quarter the exception looks of see you markets, and Phoenix generally kind where it’s do we third. seasonally from enough shift. get the of That’s et than move normal to the in things that fourth cetera was that benefit So, would I portfolio shift. when a needle the everything in that point market can happen the of to always a But, over other that in only sort with some in kind of our big what that Houston, what’s

John Kim

was strong you’re as the basically across far change the anything trade like pretty versus It saying as you occupancy quarter? this seems board didn’t rate it but

Keith Oden

and occupancy have No, we got a are north want standpoint, to markets we that management in somewhere And still model occupied, Again, of our most we operating the across XX% operate is rents. a to try around going didn’t. normally look our platform, revenue push in and -- rates you board at of the that. to still environment, the from

John Kim

us your on compares about to not of on it you this was seemed this your Can just new And second XXXX redevelopment how because year is it’s Okay. question million. which guidance, schedule? remind the $XX CapEx like

Alex Jessett

Yes, absolutely.

are redevelopments new. the So,

traditional with be extensive been exterior a have in we upgrades, past, do concept, introduced program the will is are that doing are going new repositions. we is a What we combine reposition Redevelopments in assets million So, redeveloped and $XX out to taking that And XXXX. total in we and for is around one $XX same-store. those to assets Florida three are in bucket, XXXX South for going two million. be And of somewhere Arlington. that currently in have spend to

John Kim

kept same in of redevelopments are same revenue store out taking pool, the repositions The you store? enhancing and are

Alex Jessett

correct. That’s

Operator

Goldfarb O’Neill. question next Our Alexander with from ahead. go is Please Sandler

Alexander Goldfarb

Two market you. questions for

going were know your expected you Houston Keith, to that to didn’t saying back XX% of if questions, the you I in the now. at versus just response end one to Houston, First, earlier XX%

XX%? in didn’t back? do that we’ll I X How that. the off return So, we’ve drop think start development of coming then, by see when long given in if that had to know before putting misunderstood you get think I north And second dramatic do a just Xs is, the supply ground you again people Houston, we guys and

Keith Oden

XX to said It’s back that, not it’s other of to is say I I for think, point, normal on bleeding have normal normal to -- our I to I XX.X% get than XX, be Houston, which points which expect I trying Alex, off was occupied normal. the to we’ll any basis what for XXXX. we’re at to to but some not expect in happen normal going to so more of be Obviously, is of markets. occupancy, just XXX course doing, situation. not over specific just back a

always There’s of of the discussion, are in construction, because by got just just we fourth Downtown our terms bought year. just got on you’ve -- just opportunistically, We quarter some of in last it We -- conversations last ago, pipeline, permitting their low our think been XXXX we In in XXXX the part But, impact now completions development started or see, restarting potential process years did -- to of long have not round about number. to XXXX; Houston, takes sort developments cases of meaningful in community starts. that the which in effect. for right in think new likely the land happen. have meaningful completions bailed look even are you’re in it’s out X,XXX today new I new people the it’s let’s this the and end of that don’t year obviously the world entire Harvey projected how of the completions with -- metropolitan -- an think, on get is projected land a I a out horizon, I that to live reality we Houston community That’s that in planning apartments that in XXXX, area, be of X,XXX terms through I portfolio. there’s Houston legacy completions the about at extraordinarily to is of and

X late building probably won’t first delivering the until Our even or early construction, ‘XX, rise -- be XXXX. is part the there of high Downtown we units and type

So, I think...

Ric Campo

thing as of coming -- just new these Harvey, at just week it new talk the what makes to it significantly really going other dirt infill engineers and of requires a negatively in Houston, working I impact build move into response we result and these the the to elevations put this more have more County actually expensive, ability mitigation and [ph] takes of land, play. more new construction, on raising the Institute city’s interesting was a think, of and rules that’s rules there’s in that’s you. people new I major Urban rules. about one takes when detention, could And are that on the Land is who recently Harris new up event

extent that mid regulations. -- really to -- developers driven because spend they’re certain to inches city up -- difficult, or you making heretofore of though requires developers government And new incumbents, side by has the money classic impediments that. actually which in it’s more for I a Houston. I about something February lot XXX-year like equation things think more takes So, impediments the of the never are good think the XX it that And new a the sort cost a being floodplain were And very in kind right? think above restrictive that it, to program those all go and is whole is by creating the Harvey when pushing

a people. bit going little to regulatory you’re So, constrain having more that’s constraint

lot point. and The see. loans of of a make Houston sort other thing waiting, lenders wait there and They’re at not to is this rushing there’s also, are into back

equity there that still saying are the still you concessions markets not -- go and those capital and going build, on blasting let’s debt the of like So, didn’t capital have in in pockets amount fair are like flooded, in in that lease-ups. get

Alexander Goldfarb

seems benefiting from for on is which Okay. the And Orlando, one the to Caribbean second be influx. then, Axiometrics

you So, you is there what the expect so supply as -- for more there, it what give into far look then your occupancy just as expect and a both as we you could obviously little picture rent XX, detail out Orlando, ‘XX?

Keith Oden

Yes. Sure, Alex.

performers to as Orlando have our minus A year. expect We stable. and this mean, of an be best I we one it

of that We’re going growth, down top was to top entire last which our a it year place probably this homework portfolio. true true of the of very Rico the that are it line last the has is significant yes, a Puerto in we’ve is it is lot to from port X% the of revenue been or And destination influx. Puerto or to on there -- Rico X year, be from that X entry People but done a X lot is X.X in in of people on and the from Orlando.

see residents. have going the to we’re a we going seen job big also to Orlando other in but influx that get they’re growth would So, potential normal of

year So, in good Orlando, we so market our have the best for it fourth portfolio strong this in Orlando. another year, looking really as or third

Ric Campo

sense give just a to this Rican of connection. Orlando, Puerto you

Orlando. in is So, two with York America number Rican is New City, the number Puerto one city heritage

we’re to but be anecdotal properties sort long And are it’s Rico our so, more least X of as there. now, Puerto flowing people to as Puerto at Right XX challenged, Rico getting effects in sort out. of continues

Operator

from ahead. Janney. Rob go The with next question is Please Stevenson

Rob Stevenson

Good development pipeline? guys so? what been and on completed morning, the have achieving stabilized that’s yield you guys. last the the are the on stuff stabilized And or current year What’s expected in

Ric Campo

higher, that. and high later today. to down unfortunately, are our longer build lower the X.X and and takes obviously The So, development in trend comps higher. rises around the rises overall it X.XX, cycle mid the yield’s you’re because yields on like portfolio are And something is are

on the kind in Our the of yields fully were now probably low-X stabilized batch were of range down and -- that last point. maybe zone we’re this of into the X at sort

Rob Stevenson

that? And markets basically guys you ‘XX, that, sort to for start picking are on best the expect on where stuff specific of the are you in that are you cherry you returns, targeting

Ric Campo

a driven capital. We weighted are by unlevered spread obviously are -- long-term that long-term, have absolutely against we cost average our of IRRs

trying a So, land the the key in out while in driving -- going long on I -- it to work we And deal, and be, eight for build Florida able a -- how example to just the started we’ve we in. Boca think of markets yield the sure time terms we making South made good are work. important years we’ve for been to the sense, and it’s that remember been land owned now. figure hadn’t I make our before right numbers would that numbers it we working. decision, a maybe then, and And owned is

it’s do cost. driven We we necessary cost can unlevered today because So, construction IRRs markets. by land developments long-term of that can more return -- and not we earn, that

the -- those properties not like is properties at are for and we’ve look for today built can’t three on you You the And we up example average what from rents cost at them three booked Charlotte. years. for obviously. probably in the three market look construction XX% a in And last XX% Charlotte

know yields. what you that So, does to

Rob Stevenson

if are plan your and renew meaningfully? you and guys insurance expecting insurances you do what there, up do to guys on what go self rates Alex, you more

Alex Jessett

Yes, absolutely.

pull you we’ve doubt in renewal self-insured be our tough there’s XXXX very insurance and side now actually effective date. to But and with calendar on property through. right that’s the this XX% is no other combine rolling got are expect it about lines, It’s with What that’s what insurance being actually XX%, going we for you market a told and we’re general is component, retention to the we take liability a And working to the X%. year and May process. up of property So, on then property have in when all Xst premiums renewal.

Operator

Our Pawlowski next ahead. John Please question from is Advisors. Street go with Green

John Pawlowski

I just up follow Rob’s to on want there. question

starts, to cap So, rate spread what yield is on and prevailing the XXXX assumptions? the stabilized

Ric Campo

spread yields, these of assuming we rates XXX low haven’t started are get in because the is be obviously, the and So, to points. that in yields sort those going today the basis to markets cap them sixes, probably we

John Pawlowski

a Keith, at So, what equity in were you given here hindsight Ric raise or to in able the REITs. attractive is pretty price, selloff

your getting really are and deploying acquisition five so, opportunity with you comments, a that capital, are different to left set, months later, competitive. and more And developments

can you buy now So, suddenly a can the at at high X, with no at buy which could you stabilized yields some a stock X mid mid But and yield to risk. implied you carries risk. build X, back

So, not, your your If for plans? has at this discount what reevaluate to plan change probably you’ll take you discount it will all?

Ric Campo

to in sense -- year. our the to it’s So, say selloff the program enough stock at always about, I period what, back companies year a is obviously we put buy current been our let’s conditions. long all we this And plans the abandon the market And point. based think, And price this multifamily go on have reevaluate three this in for or end four-week together stock you where obviously new a deal. of okay, through and of have we been haven’t you are sort for the

historically, to Just stock at as stock stock XX% a right and a an sell significant and persistent -- to Company at doesn’t perfunctory had days discount of is we that it the your methodical sort time we we it the the we’re ‘XX of then at we our persistent back do. discount. a able if were that And obviously discount the tech that back and -- thing bought we’ve during XXXX, XX% have to do in was opportunity always in a do to when was and get roughly stays said asset the And able And it very buying at at it. XXXX, we and an buy back buyback, the and discount happen significant size then often.

we’ll we’re So, evaluate that and continue to evaluating now it.

to XXXX last been has of stocks what, mean, silly, our XXXX starting table we’ve stock it’s is discount volatility got huge. around is buy a or beginning -- The I years, in and maybe the of back conversations a really maybe the at these table we saying, we XX% lots were of five maybe this been And four at know share and at look had mean, the management stock. you -- interesting. our think XX% the the you Board senior go If then, $XX I or up I month. trading when to

we And that the buy to didn’t so, have point. at opportunity

sort change to it flow. driving of it be discount has has apartments it owning operating be So, be has a of and significant to persistent cash and us long-term our -- to and for strategy to and

John Pawlowski

doesn’t at you you but at it stays current nothing today, would reconsider? it levels, if static obviously make levels, persisted So, make current it -- today’s if

Ric Campo

I sized, the we is, make you buy is a trying last in I the in stock in do it Well, it was the terms to -- persistent. what do, was challenge a back takes your hard did to the think that while key getting to have of think time, it. you and it’s to difference if mean, about it XX% discount

going you capital here’s the from development, what get get from to evaluate on And priorities you here’s you what short that say the this going to put it. alright, what something table can stock, a we’re in get buying sense, allocation makes that we’re is do can how you this here’s how you the knowing business. from And and acquisitions, just do long-term and so, term,

So, we’re to to drives we’re get And risk, it. and lot we with do if can create growth going that share cash to an little of a going per and do it, look cash that then, flow drives obviously. at flow we execution opportunity value

Operator

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

Drew Babin

Question largest on market. Washington DC, forgotten kind of your

rate there positioning managing combining that your any government new outside whether market? strategy to proactive. you portfolio the doing that’s employment is with just of XXXX, versus it or weak, maybe in how relative curious, for like that this out guess, am view I you’re Going in -- of occupancy seems like And be defense, government terms should pretty anything of I kind and year related supply. for that new

Ric Campo

And the of you profiles MBAs driven of But, me that. paid disagree thing the definitely, degrees, first, DC -- if is area, it’s would by It’s with metro comment technology, lots one your that workforces, for to workers, very richest, and part would overall of creating of additional cuts the Well, would what that highest the of one by think education that could on about I the that the significant administration perhaps the I side, the are master sort you highest driven government tax economy. government business not the workers DC. government of economy. growth much and kind worried is pick economically help so their kind economy and given of the animal given up say doing. the I’m spirits about

Keith Oden

not last about just do. competitors from where numbers produced of of DC shake out, DC oriented lot X.X%. our top have year, revenue, footprint growth different a line DC I It’s mean, But standpoint So, the the portfolio, than we proper. a heavily very towards total our of revenue on

shutdowns we’re me, get looking and a closer time to time from XXXX. just from like external comes other any and goes government you and but DC, in prior seems think, of decline XXXX at unless to shocks something I almost that a repeat to X%, it madness slight so year the

XX,XXX about enough revenue new we We’re X% apartments of And probably that’s growth. about XXXX, that’s to going XX,XXX get a delivered to get us state in okay, another should but keep in jobs. at line top steady kind

Drew Babin

maybe Southwest that just located to in maybe impact majority be be where it might side, portfolio Would of pockets. supply ‘XX? any on in are in pockets mean, kind I that’s supply there fair DC, anything going ballpark there MSA vast delivering the area guess, other down, few to impact Camden’s the outsized an is I of from the the of kind say

Keith Oden

down us. think I -- a don’t the -- competitive like mentioned I in -- be XX,XXX going area So, there there’s think going by you that Outside is ballpark impact completions. definitely XXXX, -- was the mentioned to set that’s I’ve to two year. development, of certainly to it good of has plan our next for I into we’ve cycle our fortunate footprint and this a and think been baked probably with new DC portion pretty that been in of X% that the growth -- area missed that, have the

Operator

Our Associates. next question is Please from Dennis go McGill with Zelman & ahead.

Dennis McGill

to considered markets, Orlando has be are do Tampa Houston, and I about guess which storm-impacted If the think just came really to collectively. final we I started number all benefited where with that question in revenue number to and First how assuming XXXX, relative storms think expectations? much you midpoint Any that’s the versus offsets that were initial year. sense material the X.X the X.X the the

Keith Oden

Yes.

basis and approaching line Orlando meaningful. I think of would XX% or the things. normal very we impact We any to expense decline about for in ended do we it’s portfolio. I year pretty of and meaningful year overall mean, fortunate points we’ve a It the impact, for nicks the of markets, some was the see few easy had didn’t year. income, it’s for I bruises XX full at Tampa, the was on and the trees up Houston in that it say, over mean, and really year; math. X% our the outside X% of on rental zero. I the and from literally, top side the the things, so impact half on cleanup side those two a operating storm just a of So, the a got than factored path it’s revenue of in either other full would Houston, down be on in was

to a footprint, -- got Florida. We Just displaced from Tampa their event from the about not some have XX in one impacted or Florida, got who from Miami or perspective, in it to employees degree literally XX degree who Harvey, did Houston, in by put homes in which Florida in single were South by of in we the flood. we to about employee storm, our the storm had had Orlando displaced

was pretty zero, So, approaches I would Houston. zero say, Florida in and in it is probably meaningful

Dennis McGill

as I outside from Florida. talked you wasn’t in residence of existing of demand about Florida but of earlier, the inflow thinking

Keith Oden

is right Puerto start plays That but the didn’t and Yes. going longer how some XXXX could be where to until hands of we up end Rico. an have with their of and helping occupancy that out. now, of was event way anybody started in sort will throwing to people impact it almost than will really this rate that we Maybe saying towards the year just be us see Orlando in have our in thought

Dennis McGill

you that there look at ancillary question, the impact that any package guidance second Can this benefit the ‘XX, then, still other And you the the into number? down rent as and in then, you beyond break year, occupancy? from And X% midpoint. that is expect that modest income cable would revenue

Keith Oden

no say I on income. ancillary would

We are now. occupied XX.X% right

bit year the plan north the XX Our for full XX be little about at of would year. -- for

So, from basis XX, very occupancy decline, maybe more the impact so side, would slightly points. then, than it call slight imply. the rental on be XX And that would three what

rent basis maybe occupancy. points giveback the XX on on So, versus

Dennis McGill

And bigger picture. then, question, just last

factors similar in you the being couple that’s capital a of very talked the story lot the of the and space some last of space wall the would lot to look as you look a years. positive at at and very a years, for couple as about demographic driven development what’s coming of You that of a

of in for optimism the the now back and two those little self-fulfilling. industry is would on years, couple if becomes stand a to be back, time bit So, trying especially then a the have have pillars if to it so other and with pull that just next to some square are those would why people supply pulling good belief start

Ric Campo

will period, start capital, Well, right? they because mantra. can if merchant get builder developers Sure. that’s And and a --

that’s returns are that -- they get, causing construction equity And are over it’s what’s demand not hard look total convince the numbers of the next shortages good and years. you but pencil units drop just doesn’t and people today, you get that costs to those just dramatically yes, your play. or numbers, then land couple really really so, private rising just costs, are driven market mean be you to construction so It’s because higher And driving rising looks the rate -- to developers equity you going start up to growth. any construction just you been peak that lot going can’t and than capital going the labor on -- the wants say has not not have capital won’t the and their a to the have and in capital slowdown. that what’s to that therefore, is market every project costs costs, at rental going at to are the deals not make start And the it’s levels, if to of going don’t not have on

the continues all pulled it’s in at estate environment, or highly If it’s commercial real multifamily to agreements, real Basel this, you IV lenders’ fall the think the to I of creates cycle. think the general. sort They look and banks have in And back. finance because Basel III of and category finance just it volatile the terms lending lenders late in that of of estate, appetite

you’re XX% of loan, between they put mezz developers in best case, out XX%, get the that. equity then to then are put top XX%. it’s -- do construction top deliver, loan, and get maybe even underlying mezz to on a of you go sort recourse In burns and then and on XX%, so, if of XX% piece changed builders stack and off you XX% pieces cycle construction has able that XX% early than dramatically. having pretty Today, for timeframe, the higher and the after And equity XX%, you’re merchant capital

their so, of And enough addition in make cost to going the else. gone cost rents of And work. up up the capital have to moderated has numbers everything having

make that down, not So, work. do want able that’s don’t just numbers going supply they aren’t they it, is to to why the

Dennis McGill

a That’s perspective. helpful

maybe, So, one placed? a way to it think won’t of get of is, wall it’s capital that

Ric Campo

to next I me the you that going moderating is animal, there’s because no out the was -- Because that most NOI it’s but to build buy five year average acquisitions, a is now, -- asset. X% minute of are capital I just of up, XX construction wall different for talking let’s right? X% the a when acquisitions, going Well, go look same on going at about a costs going to good, at if X% wait way years. And more X%, and that’s XX% the future one they’re an in going and today, is say, growth. to still still a that And positive build and are to I asset against if cost investor rents X.X%, look there I am institutional get NOI acquisition

a buy protection, to the that going having cost my -- the So, I have as I well. growing going theory or that’s cash to that in inflation-protected of and sort some belief am in I will, buy am future if replacement flow today you -- and knowing

is, I of the think that’s wall So, capital that of and placed the that sort with of is equation gets the competing part toughest capital.

Now in terms easy of capital not of right, as it’s have of just really high… a because wall Oh, -- not sale, I a there’s of wall for development

Dennis McGill

capital development of wall on the drives return wall side? the required rate, cap acquisitions down, the -- down drives of If lower and the sorry. doesn’t that If capital the for necessary

Ric Campo

-- looking going low stay challenge -- rents that No, get out of we X% I because when the at up example, continue when stabilized. the driven construction think assuming priced in XX%. we to for can’t and kind when at it you problem a you’re is, high-Xs that’s it’s perspective, the went it to in project, cap Charlotte, costs to having actually, And start I rates be from that down, don’t And -- to are Charlotte just going of yield to mean, because X%, rise at they’re in a mid-Xs. the is looking we’re

X.X a get pro am my are So, that forma I work make even how if X.XX the if to I X, I do get then, rates to building cap even or a not Charlotte, it, can’t do. today into am enough that in same X.XX, constraints even and they to to though get and don’t capital I spread deal do have financed. going the I don’t have builder I going merchant a not is that

Operator

like any to the This I to closing Ric conference for turn concludes session. remarks. over Campo back would our question-and-answer

Ric Campo

And we detailed I forward cycle meeting to more start discussions the your time we March. appreciate having look today. in when

So, you. take care thank and

Operator

has today’s conference now attending you Thank The presentation. for concluded.

You may disconnect. now

Camden Property Trust (CPT) 2 Feb 182017 Q4 Earnings call transcript