CPT - Earnings call transcript Q1 2019

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Operator

Good morning everyone and welcome to the Camden Property Trust First Quarter 2019 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please also note today's event is being recorded. And at this time, I'd like to turn the conference call over to Ms. Kim Callahan, Senior VP of Investor Relations. ahead. go please Ma'am,

Kim Callahan

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

we begin prepared forward-looking to actual filings about we you these statements be involve with or that our Before 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

first 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 e-mail 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

morning. good and Kim, Thanks,

and Kim not conference we of But is That to for recently is I call the too you focus explanation all work a and you chose of Urban, Camden him the Our for to pre-conference Year. our team Country needs to named who call our later. that let music want for Music I'll today music. tell long story solid for another Camden Keith thank associates, Entertainer quarter whatsoever. it hard story Camden. you why That's featured that give produced to no big

the quarter. You have clearly this shareholders members, shown our time team one you customers our at strength how a our and lives of improved

Recently for Survey largest markets. household of covering some in average. Bureau's from the operating magnets our was markets better our demand surprise country Seattle the the XXXX, the to might West first our This revenue exceed for identified young XX, Census but operating group. And continues driven be guidance top and migration XX who healthy year to for customer as Houston we Community The the only to that the the American are in Apartment business. followed to the of Dallas X-year X. looks another you was millennial we result, than performance a to In-migration strong, national by strong expected. same-store job the for quarter year. by U.S. regional ages XXXX Camden through most top increased be XXXX growth Denver, data market growth continue in population adults, and led released continues multifamily Austin. and Coast drive in net

completions cost in XXXX our The millennials the and be in over offered driven levels XXXX life are absorbed much and XXXX frame. strong attracted without XXX,XXX with of this of quality migration growth, job time consistent and high was markets trouble. by Our the low markets. during apartment should living

have up our developments development for our shareholders. continues to with leasing line been budgets. Our in value business Recent create

We are add development continuing to future to for the deliveries. pipeline

budget $XXX XXXX a million. with $XXX of year have million completed in We in acquisitions full

for will that some confident to I'll target. turn the XXXX over I'm competitive, hit remains market or Oden the markets. call our acquisition the our Keith While teams observations exceed on

Keith Oden

Ric. Thanks,

bit and little same-store a sequentially. the were sign quarter results is revenue were for XXXX. for revenues of planned, better Overall, X.X% a quarter which X.X% the up than first good balance certainly Our

X% at Atlanta. quarter South Denver Dallas our for Metro XXXX as Orlando B-minus were the weakest Phoenix to up First Contributing growth our X.X%; of six County expected in even. with Orange at markets D.C. revenue Atlanta L.A. D.C. rated County X.X%; revenue X.X%; Austin, Orange Metro, quarter up were and outperformance L.A. X.X%; was and better X.X%; of And markets our Florida. X% and or

leases favorably quarter in blended of XXXX renewals, to the a up quarter X.X% Regarding new X.X%. X.X% blended renewals X.X%, that rents rate first on rate new of to and the compares and X.X% were first, leases for and quarter growth up prior of the

we seeing And at are rates for X.X% X.X% we we're a of continue a our anticipate April our April that months. confidence through gives from running rate renewals summer for should improvement our X.X% preliminary expected, June blended rates May, April. meet combined leasing new increase peak renewals average to trend expectations lease X% leasing January the with seasonal for lease this season. As new throughout and even. results momentum out in leases through us going at our

again turnover April to last quarter the year. above-trend traffic across net our occupancy We first our quarter, qualified of XX.X% rate and averaged quarter support the occupancy Our versus platform. XX% at the occupancy quarter came compared matched XX.X% a levels which XX.X%. to in the was last April, first XX% in XX%, fell to strong for continues and last XXXX XX.X% level above

markets. the from our full versus in the we've a rate quarter XX.X% Interestingly, quarter in reports year. to recent for as returning greater fell as for year numbers some family of XX% even our fractional the of sale and to Our of XXXX of year slightly income, strength that yet single to an and first XX.X% increase rent-to-income Despite household the last to percentage the XX.X%. are to in see extent millennial move-outs reports market to purchased impact a homes correct, last our as remained XX.X% at continues average reflect only the rent same last

collectively XX celebrate behalf on Finally year, indication was progress for team years. of to XXX work. to great the first Congratulations how REIT Magazine's the made is FORTUNE Camden entire list an achieving the XX%, place honor included the great on in our of to Camden this of to score consecutive place also live. a Work. It's our in in last industry much we've as XX Best sentiment Places a goal the customer of quarter. We

at experience Your time improving one made to commitment lives possible. this a

to, I'll the call Now Jessett. turn Alex over

Alex Jessett

Thanks Keith.

$XX located our Town our Before the estate quarter purchased Camden activities, I to real first during XXXX, constructed, Scottsdale. $XXX Downtown we subsequent we Street, community million Downtown in million XXX-unit XXX-unit, newly financial to a located Old constructed, results Rainey Scottsdale move quarter-end, X-storey guidance on building, on update Camden And newly for a Austin. purchased recent in brief and a of for

Rockville we yield. of development the schedule, Shady in X% quarter ahead stabilized XXXX, Camden During first generating stabilized our Grove Maryland, a of

End We phase on Phoenix, our XXX the of approximately North for quarter-end, future acres Charlotte, second also the on we phase both purchased development four of Camden Camden End. completed Charlotte, second Camden the finally, of in and Grandview construction subsequent neighborhood development the first the in our construction of apartment and North NoDa phase began of approximately in development And land to homes. of

million. of the shares X,XXX,XXX public of On first quarter, $XXX the generating side, we approximately net financing during completed offering proceeds a

unencumbered with weighted million X. Camden repaid interest on X.X%. of communities, secured XX at of par was of also with $XXX repayments repaid February this We a average repaid secured rate debt one $X.X debt $XXX billion. These March remaining million at approximately million debt $XXX valued the on

now extending unsecured capacity to assets and restated As XXXX our a are March maturity the dates is result, $XXX we first and credit of and debt quarter our line XX% increasing our Also the the XX% million. during unencumbered. unsecured to of of amended

ratio a with Our charge outstanding at balance lines quarter at four of fixed our and the million times ended sheet X.X with is We credit. $XXX debt-to-EBITDA strong, total unsecured on times. coverage net

today, upcoming, effect $XXX issuance. unsecured we Camden of we of first Rainey purchase bond which anticipate outstanding dividend refinancing As the payments quarter and taking after an with Street our have million into

financial the guidance range we of from quarter for Turning of first or $XXX.X reported million, operations results, last midpoint of XXXX by $X.XX. $X.XX our exceeding share to night funds the per

and of outperformance the $X.XXXX first from of higher development in quarter results maintenance and repair same-store approximately was the of communities operating expense resulting and and primarily our lower our same-store better-than-anticipated per from impact our and repayment from lower the we by lower operating to equity XXXX and a FFO The approximately of updated overhead due and and net for debt night interest based expense full from debt share in $X.XXXX the and the income. upon first in offset fee income higher expectations $X.XX combination of costs for outstanding. $X.XXX higher timing Our occupancy remainder Last non-same-store performance offering year-to-date was approximately guidance. secured joint-venture earlier-than-anticipated amounts our revised and our year, quarter year

first result better-than-expected increased As our of a quarter X.X%. midpoint revenue year same-store X.X% growth from we full the occupancy our of performance, to

insurance of our resulting increased a expense year insurance driven renewal growth we This X.XX% X.XX%. to expense, full higher-than-anticipated challenging expense is Additionally, the midpoint from by entirely from environment. increase

first from same-store basis at also expense same-store guidance NOI Our Street midpoint the from full share. income our our per to $X.XX original increases $X.XX by maintained Rainey to XXXX adjustments guidance not Camden FFO. results, associated our to X.X%. guidance There from several in acquisition. quarter approximately our NOI of our FFO earlier-than-anticipated increased revenue midpoint our guidance anticipated with including XXXX X.X% point our resulted we XX net increased to additional from guidance our same-store outperformance acquisition night, partially year operating increase offset the of resulting following of XXXX increase the are of $X.XX Last $X.XXX

$X.XXX equity expense removed in generated recent equity repayment of NOI, We to proceeds. capital of generated from fourth and removal XXXX guidance. offset still the acquisitions budgeting, additional earlier-than-anticipated our forma partially guidance. proceeds raise, $X.XXX pro our as result quarter a spend additional our midpoint in dispositions by secured lower interest an prior dispositions our have line earlier from we the the of offering the million guidance, disposition fourth Due of $XXX prior million current debt quarter of with and at from recent of acquisition to our $XXX are our in due lower

is higher resulting equity XXXX. Last we a swaps. issue bond second the offset we in quarter Our night, XXXX assumes, increase at anticipated This million into effect of revised rate mid-June, in impact place $XXX $X.XXX also X% quarter approximately for after now of taking share per first XX-year the of guidance from by provided all-in our earnings our in an guidance offering. aggregate unsecured forward-starting FFO the share count

share is midpoint in share open this from share refunds by The resulting per an the per $X.XX an of of communities interest outstanding per We expect At acquisitions in our represents impact or an second and improvement our FFO late our is full of time, within be from shares call aggregate FFO after in increase to quarter approximate we resulting during lease-up per increase first $X.XX of share a the $X.XX and decrease questions. share revenues recent share a $X.XXX primarily property in equity for range result $X.XX in $X.XX expected our additional second expected in outstanding quarter per $X.XX. same-store offset from per the higher to due NOI, our February increase $X.XX of amounts will approximate $X.XXX FFO up debt. the expense decrease approximate of NOI tax increase of offering. This This average the share peak quarter to X% XXXX. the in leasing periods $X.XXX lower during partially per the anticipated quarter, sequential and approximate to an from

Operator

question-and-answer first at question. with session. Wurschmidt Markets. will Our today from your Austin question Please and time, we gentlemen comes Ladies the ahead go begin from KeyBanc Instructions] this [Operator

Austin Wurschmidt

Hi. Good morning.

where seen renewals year? new you've was think by lease as see do just this improvement achieve to could I new blended you lease driven been lease the curious, same level a rates curious in the And nearly have we largely rates. Just scenario rates appears

Keith Oden

in I But to X.X%. was it rates -- increase Yes. for going about April don't decent jumped that we're see anything numbers we the think did new like to see Austin. pretty the a lease

rates renewal in stay the X.X% more got year the likely surprised that about lease they rates the they number. I the for are range. where above will be April where throughout the were I'd if X%, think much new it's

So I that's don't think likely.

full the two that about we'll But the for I next should new right steady it's sort improvement. months think rates. -- even for lease repeated for may be that likely full The see year plan of number that. the after be the X.X% not for

So, X.X% to up lease the the still blended for rate end on to basis closer gain going a you're year. X%,

Austin Wurschmidt

early curious confidence have Got targets about transaction your the environment's been? it. And gives you you're just You exceed the you here year. or what But that more think are what curious confidence what Thanks. you then meet And on? talked and some this lease-up? success Ric that or the given can from again how then the focused seeing of acquisition metros you stabilized you you're deals clearly gives had transactions the competitive just

Ric Campo

Sure.

the we're million. at it's it only $XXX most transactions easy since are given would plus be hitting target's $XXX that pretty Exceeding So easy pretty million. looking today

million as in So, it doesn't past. to buy as much $XXX used the

value in markets in. we Sunbelt like metros, the There more probably is the terms In the of markets. we're

of merchant stabilized hasn't product and that a fair We are but yet. as through seeing hasn't builder been fully really stabilized has a lease-up, gone amount property managed its

create the from So is. that gives us ability the in upside cap what going that to rate

to sort them of we substantial of So sort all Xs we Camden to putting properties bring in of it the them cost all a build anywhere we're and have special the Street least that's for and bought mid-four have and cost think But them end for us bought in We're same what today. year. --I looking drive all should concessions buying of XX%. Most up XX% is in the second would cash activities some cycle service last XX% of those discount it have off flows of what replacement The here that we're Rainey been at at sort to the the been project XX%, into where attributes. range from discounts looking. the

Austin Wurschmidt

Great. Thank you.

Operator

from Joseph your comes Nick go question ahead from next Please question. with Our Citi.

Michael Griffin

Nick. for Hi. This on is Michael Griffin

levels that leverage targets levels the we think at the for should year? So at remainder sort of especially about have lower going run you've long-term it given of the leverage leverage seems How raise. your recently, equity then And changed forward all?

Ric Campo

Sure.

leverage over we moderate Our sort leverage us down to XX talked to get period it's we're of time, that in taken And this XXXX a our and about years want we've it to sort our bringing of four and keep cap XXXX. leverage don't use anymore five market EBITDA. even obsolete between times of of debt We and to XXXX times concept given debt that became during here.

and And first look quarter, rocky at stay bond in you of at going the on going the was When so that to we're in what zone. the the first pretty market was stock end the quarter obviously -- then and it got the quarter with dramatically of or the into market fourth prices. along sort mid-part quarter, first stock and improved of into the

that volatility tap time we markets the at bond fundings, when at market decided equity to time. opposed as the were so at to given looking the markets the And these the we bond in

investors better to June. we're from kind of do leverage, belief multiple with that stock get we with time should we're has to longest operate in the part So is in lower think and that certain and this our keep history our over where, then better of that a the I just we with extent, going leverage. should period dry for long multiple second, -- the to a to point of And powder recovery getting the fundamental of U.S. a

in leverage the versus said, it's be have higher cycle. spectrum that prudent the this with end rather spectrum. so, think the And lower the the end just to leverage lower leverage late I of at We'd of

and of to same don't folks have in cycle to a a that have to have powder their view. market. do that powder have down And have we when properties sell properties higher plenty acquire dry we that, leverages from take So

Michael Griffin

the, thanks, helpful, Street. quick it it’s other very Got question one so on Camden Rainey

more of You'd markets. mentioned of I'm to this market previously an one to that just your kind more get asset-specific lower-growth Austin is exposure curious play is the maybe.

little a of would on that be color nice. Sort kind of

Ric Campo

property at not on -- for But of a it's area. the affordable. been side of east monitoring in in downtown more you are and side We've play. And the are plus core of The which rents downtown It sort couple I sort asset-specific in east years. an the the makes Austin. mean of on $X downtown when the it of core. foot rents less the definitely look Austin they're It's this Sure. is a Austin

So, the we like downtown. idea being behind in

miles You are ground two the we a work street. from UT. on just Google property broke where across

urban the well as Austin have between So downtown do product, a portfolio it at sort when And important, over brings have of up contribution market it like our of when balance versus and high-end bit balances really product a is will -- balance the just that gives between well that as in our us from perspective. urban well. that suburban diversification you suburban, our that have we balance which sort time, and we good so market cycles obviously NOI

Michael Griffin

you, me. Got for that’s it

Operator

from Kim go Our next Please question from ahead your with comes BMO. John question.

John Kim

guidance, On ahead your year this of a being and last of is function optimistic Or ahead as capital are assumptions? of more underwriting pace growth rental you. improving? as your mainly cost with your far you acquisition of Thank

Ric Campo

think I both. it's

we're markets. for up growth long. so been of have given rental cycle just late seen that in bit terms We in these good tick a of it's some And

it's more bullish. debt have this we little more than want a have in And to more us properties confidence that us little -- a You we buy most longer a of confidence. for The in more a on bit does go definitely people little little otherwise. saw uptick saw gives we it gives zone, that give bit could low little think a sort would we period that And us revenue really think. a where than this an fact And growth. time of I of be our capacity

John Kim

ratio. a, rent-income lower you many your peer. than Sunbelt That's peers. then, XX.X% But your it's even of lower than quoted And main

the quoted I calculate you this Can figure? XX% think yesterday. of they just remind us how you parameters

Ric Campo

income household by divided total That's Yes. expense. monthly rental

John Kim

No. Average in median household? not,

Ric Campo

average. the It's No.

John Kim

Okay. Thank you.

Ric Campo

welcome. You're

Operator

Our question. go next your question comes Please Scotiabank. Trent ahead with from from Trujillo

Trent Trujillo

the start morning. question. Hi. taking quarter new Thanks to year. my for and Good Good

having So, occupancy noted by was each These also and up Charlotte pretty points. year-over-year Atlanta, materially supply. are basis a basis for about markets XXX in Dallas on elevated

levels? you leasing to maximizing thinking these how about markets occupancy can during these revenue you're how achieve peak able talk So about, you're And in season?

Keith Oden

Yeah.

us is. is true long for Atlanta in not In a fair a Buckhead activity supply in where for around submarket communities XX.X% development. in where portfolio fair just right are market markets historically. amount Charlotte Charlotte, really other as numbers sort there's just mid-XXs in continues -- just growth your -- where really Charlotte, enough job also true in good the strong time. the absorption a occupancy Our Less to Dallas. -- work. depends true on of the It footprint It's and are Atlanta. story continually at we to a decent lot the the of rate a -- an now been new entire that's the a make there's Atlanta of of targeted Yes in be in not the get footprint what We just amount is. of And in story the it's really there's Dallas, supply in it but

that rent. markets higher would the I to the all XX-year give be is growth, to it's I'm prime The our domestic the that's where all of of in on large, the But job of in-migration job other historical to ability decent that And core that in and a fairly rental in-migration remarks, those those in our the based millennials numbers growth getting that – otherwise almost propensity supply on range convinced a that to are large percentage our fact new I thing cohort. that markets of be to got to has of addition absorb Ric's a mean domestically. have is and factor head-scratcher. into happened a job proportion are number by story supply a us the XX continuing to we growth think opening The

total, every really market XX-plus rate a So when across that's occupancy place in we're at look portfolio be. that you to our a has good and in

Trent Trujillo

that see for purchase go of rates? recently. you you and stabilized yield on Thank that that that Thanks. there that Can the past land And compares very this detail. to cap made Charlotte maybe you opportunity about you talk you're and how kind quarter to you what touched anticipating

Alex Jessett

Yeah. Absolutely.

about the in of anticipating So we is just outside neighborhood of $XXX total be units, XXX it's about Downtown about and NoDa It's X.X%. cost Charlotte. going yield million to are

can So new on very acquisition. what a get you healthy spread to

Trent Trujillo

so you Thank much.

Operator

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

Alexander Goldfarb

Hey, Just you? morning down your there. on questions How markets. few are a

their recent revenue that stuff Some was peers of growth calls some strongest jumped out County commented your of and L.A./Orange the weakness. your market had on

curious, of better assets? have your So guys your located are were have no Downtown this off you your or is because versus what in some located? you L.A./Orange you L.A. weakness County seen where where maybe assets assets that just are subsequent specific maybe close quarter Or based on

Ric Campo

No. same outperformance which really We're in tracking but -- plan L.A., quarter, County not $XXX,XXX our our to was -- strong Orange as the on it's still about did we relative is revenues. in it's first

not for our pretty unanticipated of the in a came year. But the -- which timing $XXX,XXX, change quarter, up which Hollywood, in off pretty Camden decent prior more income, it's addition, to signage and L.A., burning it us. that a pick at of total got a outperformance a which surprise one-time from good -- concessions of to some year first the which is not a of we've Orange the in in our that from was it County, Camden was like but part of the So Community chunk one us. was is community was big in, prior The of the again that issue

year. much this than is to a our different of where But on the in is expected be competitors bit Orange it really County. -- pretty our is we for track footprint many L.A., Our little performance with

Alexander Goldfarb

voted then overturn would the control. of California And you other Colorado there. would the that your We'll on of rent phenomenon feel you Do some that's question the some where leave in aside legislature Colorado, in state-wide coastal the Sunbelt XX-year the more control way ban the is enough a second go because creep been other Okay. discussed. down is invoking of to to your housing? of a Or understand may where are markets? getting that politicians what that counter is rent you markets are sense markets maybe

Keith Oden

I to that's case. don't going the think be

We most And have a pro-business, and end couple things it's and of think in of of job these growth about we're markets. you why cost the markets employment are that -- about positive about these when the in from in, a of markets when day we the it's about at living think we're growth growth. perspective. population markets affordable And drives

if much rent as drives getting other have really of these have other demand that of can the these shock that large we sort same you in that don't -- we where So there. because that markets, demand supply create markets, build you're the between the of the you you up, just supply housing in even can some balance for price and that's and

any including any whether market mean because trying there's are of the that, are fighters they always go becomes of live that as But foot suburbs or rent and about downtown a or go They $X.XX into folks downtown suburban Dallas the control people teachers Houston aren't interesting the you areas about pushed able can't you should $X.XX or dramatically in Austin. the into $X -- getting and there but at to like lower out or of it and fire out at drops get when way a out they thinking are pretty argument, in in high-rise urban the argument aren't that and live you housing properties control suburbs. start the price ends So can affordable. The areas, foot. that it, to major rent, an or is be we that in because at -- the discussion considering I markets a

Alexander Goldfarb

Okay. Rick. Thank you,

Operator

Our next America. from Bank question. Spector with Jeff of ahead question Please comes from go your

Jeff Spector

your in discussed you not sure this southeast supply demand especially your about I markets, where is did. Thank talk the you, stronger XXXX than good could But morning. you you so if I'm if on apologize already, clearly expected? thoughts in

Alexander Jessett

Yes.

And XXXX completions, for XXXX. like the last at across just looking for we looks Camden's in Ron work, XXX,XXX looking all So XXX,XXX. at year get we year XXXX, footprint in it for entire got comparison about apartments Witten's of

So the it's supply. of terms in virtually identical

it's but XXXX Now growth and moves market around identical job coin it in almost terms of is though the two little interesting The his completions. the in a location the side aggregate, million but to flip bit the from thing has of morning's year job's he's a in it growth increase had Camden's but And XXX,XXX Witten's this even numbers reflective it's market, number that XXX,XXX total do number, of in of this actually employment not in up what hurt to in job Camden's footprint U.S. forecast certainly going total employment across had number and the got for to that is that, his last again forecast, million sizable to pretty if what down XXXX. within couldn't from year. X.X XXXX is year. last growth going growth He that portfolio coming Witten and from at to nationally this look today's U.S. don't know I total is you is.

is big pretty in reflects which XXXX average. which yet way thesis is drop So national all just clearly, year, better continue a than last we are more to want it that's between along of -- And a we're XX,XXX and our and Camden about the population markets up seeing XXX,XXX be we're his to forecast that portfolio in than our jobs that and grow employment picking jobs and in is across XXXX. nationally

Jeff Spector

point? helpful. this are Thank to That's able And at on XXXX you. you comment

Richard Campo

going it? No markets not but matter and how coming, do, think be. to we talk we're about XXXX It's isn't you what the going to

Jeff Spector

That’s was talking all. I about… fine. That's only

Keith Oden

although completions got markets mean, tell is there in I in If supply it can Camden's from goes forecast you XXXX, the XXX,XXX. employment and growth, XXX,XXX about up to ticking sure. leave it he's -- I Witten's to -- up

up. you longer However, its I you because further, construct so three and it for four the got just high-rise, longer takes or it caution turned, and for has of forecast that product would completions some the communities because to been last on moved every longer type, these more lease to getting takes shortages out years labor

So yes, But slip. every subject years the we those apartments for aggregate, to out year forecast know to slippage in it's XXX,XXX that unless some five of are we've occurs. the -- last the four, on deliveries somewhere deliveries seen going that around

not Camden's So increase a across huge portfolio.

Jeff Spector

talk Thanks. second That's if apartments. that future think Lincoln And that can could especially or you thought about, then are when disruption? just Square about structure interesting. convert you other there thinking you to you're ideas helpful. thinking the parking What very about was my question -- Okay. We

Ric Campo

the place a Well, disrupt to good to is news that's really sleep. hard

can't that. digitize You

You don't need to But you place a necessarily need generally need anymore. the news a a you apartment. for bathroom sleep good kitchen that's

to going But estate be major for our disrupted. going don't think of disrupted do be business. to overall is and a use think that going we that disruption to we transportation's issue real So, be is clearly the

period is and reasonably reduced a Rideshare, for show amount time, the you years. built parking If environment, of when cars and a you their requirement the and look about cars, of be America So, environment things projections the percentage to over XX% that today, that little as short thinking it's like right? at built in like going parking XX of a over of most start autonomous

sure NAREIT So, up we garages Denver. that property what there was you're like our we've doing story in about -- making probably a when talking the build that about been is our

them of way where on of we ends floor concrete. of designing sure that don't and sound. we out electrical flat kind way They're sort we're keep primarily, concrete plenty and that to have the We chassis make in plumbing on concrete plates. and try future. to can put break for circulation but we're the we in doing are have of In the those sound, more usually so use for a to poured-in-place as Tinkertoy what convert structures to easier opposed the sort is in they're that -- always sure So,

probably needle those enough that adaptation terms returns. reasonable little perspective. not They're move spaces, but we're spending of So, still future of to more our a from it's on bit the in

going it's we're on their and interesting lot on put everyone's I apartments lot is wrestling to mobile with an that with. mobile the the package to think going allow to of residents packages solution in lifestyle still from the mobile think future issue Ultimately, and of there's be solutions for out a via a our -- changes that's everything there'll a directly be be already we mobile help there working app. and that into ultimate to

on be really revenue also expense for think a the but win side I only saving to that's we there opportunity because the think there's when office of going us a start opposed not issues on revenue you had issues deal having about as those deal actually customer to not to with thinking kind where lot of in with folks issues. those side the our service more

Jeff Spector

you. Thank Great.

Operator

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

Drew Babin

good Hey morning.

Ric Campo

Morning.

Drew Babin

peers different on Alex's is question well? that's about what on Is going as of extending you you also outperformed there? of seeing? from seeing issue are where that talk Question Can anything maybe revenue April are into California. materially about growth sort -- D.C. a Southern significantly footprint XQ your sort And

Keith Oden

And higher are They're at percentage really that more footprint just When our assets Yes. great suburban. look of it's issue. a assets. have we It is. we a

better have completed in a at forma young rents. D.C. Both We them well We just than projects up leased portfolio very two new of in D.C. pro construction incredibly

it's NoMa, but In and -- in in Shady the square instead -- a of downtown foot. $X differences foot. about Grove, it's it's NoDa space a square So, you're the $X talking

from relative continuing -- mix issue. do would And in primarily a group than in did biggest looks us first did outperform -- the an asset quarter. as We our we like we better $XXX,XXX be revenue and point But would and difference price the just more We it's -- mix issue it's D.C. continue April the side a to it's the peer thought So, it would say on about footprint. that's -- that's what well. into plan. the I

Ric Campo

single on I'm road meets are which the those the -- one where gets that the level it other are to it customer Camden's hitting XX day. every mentions going that down XX%. to Work really matter on And when working properties service the for this these years, list does people at Great smiling when that's rubber are and Keith comment been to Place that people and on third and rates is add

better competitors culture. We as bit and manage squeeze to more attitude revenue. have in well they just bit have and a an because little that awesome little that they're team able I expenses a there and our out believe

Drew Babin

helpful. Okay. Thanks pipeline. the one then, me question for on That's just that. from more And

that development. looking probably stabilized at comment the there that Are are yields exceeding in look five bond original short And, to under falling and you projects well. as extend are meaningful lease-up guess, those? If maybe lease-ups on at terms and or now currently of I could in that the projects any What expectations? you are

Keith Oden

are move And in if less they at are those These meeting urban then look are we -- and tend you our more to expectations that suburban projects the construction. seriously on Well, to urban. they're projects under projects. the lease-up be ones projects,

the when the are trend more of at construction terms which downtown yield look projects, Buckhead, than Lake you and projects. project lower high-rise are these suburban in to Eola concrete So wood-frame going also

X% under more the development So plus our are for or X% be probably yields completed to in X.X% they're in communities lease-up. the the the and to going communities range, minus like

Drew Babin

there on have is one Is a just you're in ultimate communities. goals? I has it's vertical. guess of more you the different Houston. urban decent so -- been some Station lease-up Okay. know -- that And, your little and a supply Downtown hitting little I in that, McGowen where kind

Ric Campo

Yes.

on pretty track. And going midtown, on are. a We a Houston downtown much that's going Camden. a where starting to into now. the long-term for all and we're It's asset out excited project been suburbs about move concentrated. be the project. be had to We're our has great the lease-up and it's on to And great But budgets. track is area supply it's that velocity -- the has

Drew Babin

all Good to for you. me. That’s hear. Thank

Operator

Please your question from from Anderson Nikko. with next SMBC go Our question. comes Rich ahead

Rich Anderson

that And, interesting, thing mean, morning. Could Good is be the I Ric, XXXX know. to interesting would coming. you say same Thanks. XXXX? about very

Ric Campo

could, absolutely. I coming It's too.

Rich Anderson

-- the for Thanks

Ric Campo

right? a fan You're Game Thrones of obviously

Rich Anderson

actually. Not want be. to all, Don't at

Okay.

and a the you specifically for So handful the some up I had perhaps, that. these a the you that, government credit came a -- called behind a help about missing month-to-month sort -- to And of quarter me of is guys of or to D.C. rents looking people in rent and some on made for was of terms have that you back of very shutdown. people enough topic think a specific it relief folks And question last XX on that get came in paycheck midst or all out nervous. days

And tell tenants guys paycheck-to-paycheck so would all, it first tight be of when so your wrong, underwriting a you scenario that I'm So, so if of hopefully. it not me why to carefully, such type rents? it's second, comes your are

Ric Campo

Sure.

bad you a see number quality at quality issue credit our credit think credit -- about you we when you one, suffered had debts up. all. So would quality, has mean, not I can tick if

been very consistent for Our period bad time. debts of a long have

they're not think when -- I think paycheck. people generally however, though, their getting I have issues that do

good, them still elsewhere. they're expenses are XX.X% at deal their with whether a that have of a a complicated dance. us so tells they're to and rent that they Well, not saving lot it's look other credit And and lot but that And most that income have as our -- if people well. you is money spending

getting it I a to sort free is for where workers think the and -- people are so you the media of -- aren't can hear reaching of out too haven’t and they in who they get think to the they that, paid So part government something certain extent.

deposit rent they the was with waive fees actually did we paid What paid rent. them and waive get the the late didn't rent. and -- waived to all we worked Now

people. So handful. issue we And, thing, were wasn't over country. one government had some was And would a people than because the hurt a else. timing it's of most we they're think like trouble. But it said, of they're -- in month if interesting miss that just Colorado. in months anything they the think income, I don't the people I all workers it California, more that several And I had And that in D.C.,

Rich Anderson

Yes. a a mean, Fair the enough. it? nature to situation. to fair kind maybe you're of Is put But responding response human I way to that just

Keith Oden

service make is that sure customer take issue. and we Absolutely. We want a care big to residents of our

I and this fine. say we and So worker, I you'd of we said teams a across out and issue week. if as government a to out want and if somebody proactive the them. late then everyone on care my in rent that – an don't comes look platform actually, sent says, guidance has can't pay our take that sent were fee I'm And somebody

Rich Anderson

Okay.

Do in is is know your Second screen sort your question something a included you on not of But radar guide that. significantly? have that you're XXX? you S&P care sort picture. of that into is guys big vision about that the I being strategy around to going

Keith Oden

don't we be and guess. it'd control nice have I Well, But interesting any over that.

I And about control. I things can't so really don't worry

Rich Anderson

Okay.

Ric Campo

Yeah.

part audition S&P, go would it's all like the it's you be of something love think it. but for a that we to I not

this question in love no be be important particularly a There's thing positive. to world be. and would – funds. just would we'd a So It's about index an it I it's it thing. it mean, good of

line So listening if anybody from available. we're S&P's the on

Rich Anderson

all Thank you That's me. very Outstanding. much. for

Ric Campo

have to you back. Good

Rich Anderson

Thanks.

Operator

Our with next your Please ahead question Bank. from Deutsche comes from Derek question. Johnston go

Derek Johnston

$XXX are versus job annual more and of of you this How super the probability growth everyone. and and targeting around thinking wage a has starts being Hey, cycle? end Are stellar with cycle rates that development you of doing? at million lower-for-longer the all still in shifted this

Keith Oden

ramp going can something we to challenge to where makes and sense of could are put $XXX a target construction costs to to of land we transactions can't that continuing feel continue that rise is And over are finding very, lower getting we like it on I And rise, it the we guess, that we because We capital. just just prices that the and to returns up that in think decided the have put and – is that if our don't the don't is just well we could the return sort – today sort on hurdle year. rents real we The great. years that up are million ramp right to the our continue still allocate in doing of how dramatically. very focused rates longer difficult. that's and disciplined and do requirements. lower even that late we metal constraints all do. we I that really, we But pedal but economy we cycle and

Derek Johnston

right. All

that is makes. And Now and when I payroll apologize get expense your growth I you by expense And just quarter. this to I on driven missed then – property asked seem we're softening? to taxes did this continue don't this it. just if looking and But someone if know, elevated trend on see thoughts

Alex Jessett

absolutely. No, Yeah.

slip quarter expecting if We look second between for about property the up two X.X%. think year, quarter million it'll for The the So you the between $X up actually were taxes we're third difference be and is the full that, big of at first the refund X%. quarter.

year. If in at about the up line with of for X%. expecting That's we're what you look actually sort the salaries salaries, were full

the bit we at this the going two Number that's to for a than XX%. would we tough is health But full insurance, continue about the factors. first we wildfires you California, you little about equally you sort which start was look feel all a first and in occur in comfortable insurance our they started in our when expenses. that And on hailstorms good for dragged a talked were very that is low. in when second seeing. one, the Midwest year numbers last raise in some We really premiums. the be of these the year too. really driven XXXX, they think is a quarter of revised really and just hurricanes there you're about year ultimately, to thing about have quarter think at recall employee this actually on full rise – in look full in And then that's year that XX%. our expect things what all about years start which guided think that impact guidance when environment, happened by And I property we And is you at But so the entirely costs, Dallas that two those year, year had the the like care with little think renewal bit we we floods higher to then have to providers. closer for to we when did If of last sort item we the fact didn't full that

Derek Johnston

Okay. in you June. Thanks. See

Operator

MUFG comes And ahead Securities. from Ford from question Karin Please our next with go your question.

Karin Ford

and was Hello, better quarter if new ramp rent first I than April occupancy on morning. from was you see. the good normally wondering with what lease line trend the growth just into seasonal or in

Alex Jessett

-- trends. better jumped the little X% up bit than for and X.X%. seasonal to X% Little that quarter better than We're

will moderate. that think I

moderating you're X.X% year, over and the full in to the in lease as plus But year us on it that's on somewhere the platform. the go up to the the growth. think on -- some to X% for around probably It somewhere for new that think end leases minus going or X% to gets will renewals forward. the somewhere April numbers we full going I I X.X% be

Karin Ford

Got it. Thanks.

Alex Jessett

You bet.

Karin Ford

land, your end sense parking parking value if in for any to in being needs just and up your does parking much then future? Ric, And in the question. a follow how on be hidden the up reduction drastic could structures there

Ric Campo

probably when to in make return that adapting for on X% real parking. actually sure be basically today, charging from you're investment our right? revenue investment, a pretty a about of say property much going you XXX-unit going a it to parking from garages it because while rent, substantial those So it's you're XXX-unit a and than call by other portfolio we're normal to or substantial that half parking, convert pretty if estate we're apartment is some Well X% the zero apartment getting think could

Karin Ford

Got it. Thanks.

Operator

possible John remarks. is turn I over call at any management comes question your to on would mute. go with question. from the it Our ahead And time, to back questions, conference this And Stifel. ensuring sir, from Instructions] next Please closing additional no Guinee like [Operator is your for line

Ric Campo

We'll Well up. you coming you. so Appreciate be with opportunity Thank thanks the today. Great. see you at much. NAREIT to

Operator

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

disconnect now lines. may your You

Camden Property Trust (CPT) 3 May 192019 Q1 Earnings call transcript