Camden Property Trust (CPT) 30 Jul 212021 Q2 Earnings call transcript

Company Profile

Participants

Kim Callahan	SVP, IR
Ric Campo	Chairman and CEO
Keith Oden	Executive Vice Chairman
Alex Jessett	CFO
John Kim	BMO Capital Markets
Neil Malkin	Capital One Securities
Rich Anderson	SMBC
Rob Stevenson	Janney
Nick Joseph	Citi
Amanda Sweitzer	Baird
Rich Hightower	Evercore
Brad Heffern	RBC Capital Markets
Alexander Goldfarb	Piper Sandler
Austin Wurschmidt	KeyBanc Capital Markets
John Pawlowski	Green Street
Joshua Dennerlein	Bank of America Merrill Lynch
Haendel St. Juste	Mizuho

Call transcript

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Kim Callahan

Good morning. And welcome to Camden Property Trust's Second Quarter 2021 Earnings Conference Call. I am Kim Callahan, Senior Vice President of Investor Relations. And joining me today are Ric Campo, Camden's Chairman and Chief Executive Officer; Keith Oden, Executive Vice Chairman and Alex Jessett, Chief Financial Officer.

If you haven't logged in yet, you can do so now through the Investors section of our website at camdenliving.com. in mode. be will participants a listen-only All [Operator opportunity to today's presentation, be an there will ask Instructions] After questions. And please recorded. note, this event is being webcast copies for are available request. will afternoon Today's we and replay happy our of this share slides upon to be

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

complete Ric busy Camden's call after that the limit to time, non-GAAP earnings At our be and additional reconciliations be includes to reminder, to Investors you know release questions your it website to measures, e-mail discussed by at unable queue call Campo. you I'll over questions phone ask within a this we'd we to rejoin We which complete we the on or to concludes. of the today, is to us. in second happy items and that additional multifamily have earnings in turn for our today the everyone call holding call. if another after to respond the with as hour and right queue calls discuss. the their calls financial one speak will are two section We As very available camdenliving.com, is other day XXXX quarter are hope companies If

Ric Campo

interesting But that during encourage because Queen the end blaming like began, Dallas at what appropriate advice happened, we And them chaos. the when the we thought great them encourage all from on-hold back. Good are the take knew the innovation, we and lay Last We share And financial do suggestions music of way. values on started of them losing things keep morning. Bon our you. our to few learned that for company the you of the At about seemed the head suggestions we help I wide just there's can Bowie the embrace this, as famous you to culture included on teams Camden's and to eagles theirs it conference you we chaos that the the out OREO call on reminded would when under we and crisis. look our and that as with told the roll our with if the us to born from was today a and knew that was pandemic on knew cope it Kipling list the your and We David call showed year today. find music Operations Group Boston with feed faced take Texas just way to get rely might of don't poem if Rudyard the themselves we hold The to wagon we financial and board, went video follow. held on we when Among said some in call, with coping and produced lessons beginning We like today. changes. to line to fast, of are weren't first same headed to the our going great ideas, other pandemic. the were was We crisis. by Jovi pressure. a easy. fail a finally We find for

XXXX. from also cases, providers apartment almost where to economists So that as data half we into board, both exceeded first our positive, Despite go supply beginning earnings our strong ongoing our will since the of occurred Across rates providers we apartment improvements been all an many the occupancy greater business second anticipated, we improved the we're in see they acceleration absorption delivered the rate rental in and and allowing markets, acceleration high of seeing current far move outlook of night. positive estimates call, call homes. of demand and levels and very than power and the has continue operating in is in newly XXXX And [Audio-Video last our has thrive resulted ahead performance held levels. The our to quite or in video. quarter Presentation] third-party are The and guidance pandemic continued released into and their exceed across the earnings expect When fundamentals. roll pricing actual markets. we

currently activity and Our leasing strong XX%, is occupancy is low. turnover remains

I Camden industry in the for our would is say multifamily good. very overall, So outlook

We national the two are excited high-quality of enter apartment the market properties. with acquisition to

Thank teammates, from amazing customer competitive a work give very for our everything great lives in and customers improve to Great opportunities this. to a for rental Our like sales Camden our of one support our is asking every acquisition service at and market. the a shout Camden when to very this and experience must team stakeholders customers. market getting advantage service great our in double-digit of the doing do day our and We to time. Camden development important out I you customer and and team proposition teams value and acumen deliver you, strong hard environment. a members the to smart continue job want increases for find taking

our up Co-Founder is Next Keith Oden.

Keith Oden

Rick. Thanks,

markets property sequentially. and results. revenue quarter growth positive and was Now for for operating in on year-over-year Same our few X.X% quarter, the details a both all second was

remarkable thought lease new Tampa and quarter's growth good Ric at have and X.X we were at at but renewal Florida nearly both numbers X.X%, April last in at accelerate. Southeast Atlanta to as pricing the mentioned call X.X%, Phoenix reported X.X. at power pretty on and Raleigh continues We X% We

'XX, leases second quarter and X%. were were of rate the signed renewals X.X% a new For for X.X% of blended

leases and For became quarter. earlier signed during were which the second effective

to in instituted, historical which in to slightly turnover first quarter XX.X% home second levels. the out July ticked from offers growth lease to ever but Net ticked new first months in quarter, be the up quarter with XX.X% seasonal the for and around with outs improve of also Occupancy this X.X%. leases quarter, July. New our increase continued year blended rate had the August Renewal normal Move below looks purchases, was of average XX.X% X% slightly trending second for we've from well that has XX% to of with second of markets. and currently quarter and blended versus last patterns at up increases XX.X% new to in year of of the in is at it to a reflects also due XX.X%. renewal best going long-term XX% at this X.X% in XX%. a remains the an for XX.X% renewals was XX% XX.X% rate one XXXX to we pricing September aggressive sent year the signed

of It's regarding average performance constant below the not increased slightly despite effect has on to home about still our Ric Camden's of internally in it had So something opening are portfolio the remarks. long-term move our number mentioned often. really single-family why discuss homes outs headlines his an sales, as we purchase XX%.

of Our a an improve of is the that we the not amazing, of has months emphasized ahead more company focus focused results and lives of wide team we could experience proud and to our now throughout teammates' their improving provide at Camden how meeting Officer. be improving Improving who been on Financial XXX participated residents' at plan and number share the to shareholders lives employees beginning in We has Star purchase our year. Camden will in chaotic shared video employee the improve we at one and purpose time. Camden's who Wars experience lives customers likewise of efforts In a turn shareholders, on extraordinary lives. customers approximately the or months. the I'll the attention our call turn lives, time. of pandemic, Chief lives including team teammates, Jessett, why our performed the our the over one this the the COVID opportunities The improve Alex truly to our have

Alex Jessett

Thanks, Keith.

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

Music Camden five-storey community Both were $XXX mentioned, previously of Park, yield. just a $XX market stabilized XXX-unit to X% quarter generating in program XXX-unit for purchase an During venture development X% Camden Nashville we Row, and constructed yield, Camden of Clearly, RiNo, shareholders. a recently million purchase community. in the entered new the as XXX-unit Also, a at and our with the Creek a quarter XXX-unit, Houston, significant create both constructed Cypress under approximate million purchased second we an $XXX joint our a XX-storey value of continues Camden during million the Franklin assets recently Denver, yield. generating development Texas, approximate II, X.XX% XXXX,

side, new the Nashville. leasing XXX-unit We entrance San at development into the proceeds $XXX million On a Diego used program. financing the fund issuance we ATM of Additionally, quarter, to during existing the began under our quarter we shares during Camden approximately issued Hillcrest of million our the in $XX

line Our ATM we a existing fully scheduled week. practices, in only we program delinquent. and with next ATM XX.X% corporate is quarter file the In our rents of X.X% with program best collected now utilized will new

through we accordance reserves We In be out for revenue reevaluate us property same serves income have and revenue period. pass moves revenues evaluate the money, bad which there'll no with current be in previously as appropriate to When future then a recognized certain our by to statement. typically as and establish collectability. the believe impact to to month. in Turning a GAAP resident what We reserved all reserve, owing corresponding uncollected this an debt. is the offset income us amounts, monthly we uncollected

we a million. multi-family have $XX reserved receivable against $XX revenue as of For uncollectible residents, currently million

of and store for account $X.XX our quarter recent of and a remainder per results, midpoint the resulted partially funds can of the the X.X% full and the financial year for or share. approximately have from This guidance a of from per XXXX aggregate for Last costs by from we million, to revenue per outperformance lower in of our by the leases, better of was combination and year, This the or $X.XX operating for revenue, the offset upon operations lower water employee XXXX occupancy consideration higher performance by make? higher what X.XX%. ATM approximately combined year, occupancy remainder lower communities. same-store our guidance. share our $X.XX higher updated $X.XX rental second driven also activity. from operating development to our quarter due with Last salaries significant we midpoint of Taking exceeding a full plan, stock improvements $X.XXX $X.XX year-to-date our range results share, bad growth night by and revised share a impact mentioned the $X.XXX anticipated expense expectations debt purchase higher rates, $XXX.X outperformance from a associated positions and $X.XX to night, than same-store higher year increased reported in and our primarily previously from of Turning year new of into and higher second NOI, with $X.XX driven $X.XX we and the from expectations quarter resulting non-same of resulting on-site, difference our renewals expenses open our overhead primarily resulting and lower based our

same-store midpoint Additionally, result quarter, slightly our of we X.XX%. the midpoint trend X.X% are these to better continuing is X.XX%. the of XXX-basis decreased anticipation than to our point of result and guidance XXXX increase second growth expense same-store X.XX% from NOI full as of of throughout from to a of both expected the the The performance our year, year expense a the changes

XX% of renewals approximately Last approximately the same-store year XXXX X.XX% of averaging guidance the midpoint year, we and of the with $X.XX revenue share. are occupancy lease night, remainder also full Our per growth assumptions XX%. upon increased the by averaging FFO our based blend new for

second remainder $X.XX guidance share. occurred quarter, FFO increase activity. midpoint with and anticipated point aggregate of the XXXX new This our offset partially $X.XX communities. per quarters. This results. a $X.XX Our from increase the is store in this increase our to in XXXX ATM per an quarter by $X.XX is with $X.XX approximate $X.XX increase over our development increase third share in anticipated operating an And FFO $X.XX approximate from from fourth $X.XX results or and of same-store second impact XXX-basis $X.XX non-same

$XXX quarter have of for We no guidance of year XXXX. full acquisitions provided we dispositions. earnings Last million made night million changes of the third of and to guidance $XXX also our

per We range within third a $X.XX quarter, The third seasonal from the from to expect rental expected quarter higher offset rates, to quarter in partially primarily by expenses. $X.XX quarter ATM partially share X.X% non-same full in our activity. our resulting our sequential increase and be $X.XX. the approximate per $X.XXX unit or impact share same-store FFO store per result offset in share $X.XXX $X.XX our from NOI utility, turnover the per in our NOI second $X.XX a a development share to personnel from and by normal by increase and the to midpoint second per increase for increase anticipated second $X.XXX from incremental contributions improvements other $X.XXX incremental from communities of represents which is of driven joint recent increase This maintenance, venture of lease communities, quarter communities is and aggregate FFO acquisitions. share up, our repair contributions A

X.X Our ratio to fixed EBITDA sheet total with balance and strong net X.X coverage debt a times. remains at at charge times

development billion we cash of and million years no three approximately left $XXX have we comprised to quarter-end, existing no million outstanding debt unsecured we have equivalents scheduled of $XXX and amounts As the of had XXXX. cash a today, in facility. At pipeline. over under $XXX $X.X approximately maturities million liquidity spend And and until next our

this is the cash At with earning excess time, invested columns XX-basis banks we'll to various open points. current Our approximately questions.

Operator

today [Operator question-and-answer first the Instructions] Markets. We begin will Our Capital from now Kim session. BMO John question comes with

John Kim

it you mentioned is But period rents, and And on comparable or wondering to seen. Thank thought track you've ratios, Ric to? know have clearly months be been something concern would Keith. ever the to what you, I'm affordability, best. you, most one income this of the is I or that whether the suppliers may I July else? what best And it's

Ric Campo

business of bust you into to the in say and I in would we've in demand mean, market never careers. big can of the I business, in released that the seen think. I the to you kind this go go seen we've our 'XXs crisis, the this can demand our snapback history financial never kind of

So demand fiscal than saying it is pandemic today, this it or is with today, in going is supply, going we're that imagine concerns all sort the to - you about guess what's today slow building to biggest take the worry or I apartments stimulus stop market that it unwind monetary how the on supply over I'm whatever issue, about uncertainty high if Supply really down time Again, so unprecedented. probably massive and could of can the enough always is not what thing happen. to going the me. that people that up demand. has the and been is today that

of be it's it unprecedented. looks to And We're when is there. be a look the of definitely it. here. year backdrop, little Keith, you it might like going to next sort to to strong the So want is it's add really XXXX really, like bit year. going same. hopefully, looks And you a Well, going enjoy at

Keith Oden

Yeah.

payments. about in question last And to that portfolio, XX% mentioned asked and that concerns still household goes So of the was just rent income running John our the we're affordability.

XX% But for up in are little everyone the maybe directly of by ticked job been years, our last reality the are. not so else's bit. have is that it's from are Their COVID. wages that standpoint, the ones couple increasing residents a a the impacted So had as

guess from going in is go we're to start well. pretty but increases affordability. great are of to up, a as that significant place And household see income So rents yeah, going my some the that we

John Kim

developments. on second my question Okay, is

the much trending stands far the forward higher yields pipeline? quoted I wondering as today and yield some $XXX are pipeline? current And completed. bigger you'd envision You But where on the development how going as developments was your of million overall projects

Keith Oden

ranging and $XXX pipeline, six to the in Sure three million our five from yields quarters.

our And are And average so really it's quarters range. up in to pushing X.X% think that's an on to And yields capital, five, been to initial total. we're of of IRR about the down the when it's mid-eight. three X.X% six is you in roughly development the on, capital cost been what's that's everything All in instructive average yields. that's And in the the delivering driven going given are markets going on mid-fours. weighted

and seen did So making that we're development and weighted 'XX. we're after spread been widest creating today, XXXX in crisis, right it. our the the is financial transactions we higher And our the it's maybe - weighted much of some of capital XX. between average cost today, the ever crisis, obviously after cost financial our and average I've And capital

We But have up given or yields have the not in revenue we pipeline never mid-sixes And now. we're million we the going high high-sixes right. protecting that $XXX line roughly today. current our know, into - you like have those

cost shortage there. still instruction are disruptions and challenge So have the and getting out yields be do to other workers. big that chain those supply We the a will just right issue worker

the are eight the with are of in five in our five in that middle to that most there to million range. half, developments $XXX IRRs pipeline half So seven a and

now. development the - low as and widened capital. would of terms margins a are rates also great adding to of we cost interest pipeline. - In by been low right business have the Obviously, to We dramatically like

as that trying as well. speak add to pipeline we to So we are

John Kim

Great, thank you.

Operator

from next Capital Our question Malkin One Securities. comes Neil with

Neil Malkin

Hey everyone. price. and $XXX congratulations Good morning, share Unbelievable. on the

leases the that can demand in discuss acceleration of heard uptick you're the of new question, any incremental some changes of We seen levels you've voting new with that odd seeing percentage sort this elevated highs to an migration that from higher are this is you talk if about already First of trends. et dates, that's season - state. from of cost I their terms think Can driving really are terms feet. earnings out people in just you date from in from or thing cetera. Clearly of

be color So any will great.

Ric Campo

a look Sunbelt our you to XX.X% the folks at number ago, came year XX%. if of So Today, leases other about from about that is new moving areas. from

So that's renting non-Sunbelt and a markets and the XXX-basis folks from with markets to point Camden. increase Sunbelt moving

So dramatic that side. on really increase fairly

Keith Oden

the to that Now side including jobs job is, really most thing add Houston back all market of slowest one you the that's because I of was in after to at of look take fundamentally and because in of that the look been still that are if markets, it difficult same I'll at and the all moving would the demand And the those And part buoyant jobs the gas that's opportunities today, the pandemic, market some other markets. People example. have of pro-business weather as at you our they're of in - market of pushed and in things of equation markets is When not relative And Dallas, of Houston. and think as our of the an migration. are the rate bottom. Houston. decent is some other markets this number or oil as of - our Houston have influence when they're to moving these it as pandemic, there. markets amazing that growth being that governments at that way. I or as the have believe other jobs spite an jobs but aren't Atlanta back at Houston the strong Austin Even was up those added or aren't bouncing markets, Houston back added a lot during

Neil Malkin

rates equity mid-to-high-threes. Maybe Yeah, very is that's the low also sub-four. Obviously, your the are great. or But cap AFFO in acquisitions cost about recycling. just talking

the lowest is leverage Your in industry.

Just dive using wondering, look little just your clearly markets, expectations of given in to growth? well. bit conviction I'm of do? up acquisition increase growth outsized capacity sure thesis you as And some the Would your currency, to for a market Sunbelt kind the kind have you leverage, in picking the more and into which your that

Ric Campo

million $XXX The answer brought ATM And showed sort when yes. the in Nashville. is that the second in quarter out in we $XXX of properties of million issued we and

my been team's are management IRRs. capital today, of terminal average do funding weighted it's and that sort out, unlevered tenure we those we development When the equity As perspective that issue with today, or capital, average our put towards our obviously price price, you are. where can to arbiter. at down just numbers you the And and is of of at, sort see through not cost we X.XX% perspective, and look our important relative bond measure incremental you at at at of the look best if unlevered the being match we bond dilution when and just look treasury bring you debt is our we from acquisitions the the they being yields that's up weighted of most rate look ultimate IRR, but What stock cost rally driven really discussed.

growth closer our a we lower when average Keith on of IRR over like Alex you've and spread cost you a year you seven range look kind mid-fours as four - light though that a team green And during and shows our appropriately. can your when debt-to-EBITDA strong development cap that And acquisition of times. REIT as in for is to you And growth to markets, balance times it that on of targeted from and the it's so rates, heard look this or IRR cash recessions, properties put sort of capital an side you you XX the and capital times going rise. land, basis in and you market that unlevered when tell would thrives and points have tougher - And side both to at it to I pandemics goes unlevered and in bad has rent weighted Nashville. naturally four mostly that's period, to XXX in get having. in when talked acquisitions acquirer think declined rare they're manage good And flow or and about me we're these positive I it and go a on at is we So up X.X% it a our interest during capital times, during debt EBITDA long hiccups, kind where five the you drive - rates management down sheet of five. what sort even

today fundamentals is spreads average operating capital in obviously a strong unlevered this we're good of and capital our weighted and strong So very, markets strong our cost times very between IRRs.

million acquisitions to good to hopefully time So way. of starting a as way And done today our come. more is development $XXX already in we get where grow it's I a million we're of year. going pretty said And $XXX that next And methodically time. this this our company earlier, lot

to So while shines. make the we're going hey sun

Neil Malkin

that's and the up keep on great Congrats quarter good Yeah, work. a great.

Ric Campo

Thanks.

Keith Oden

Neil. Thanks

Operator

comes Rich question SMBC. Anderson from with next Our

Rich Anderson

good Hey, morning.

people is and guess your that all I that referring people. curious is the improving am to wondering activity or bells in can the lives offer plus - renewable But or of I I'm market market competition because So rent and increase July just whistles that can't? Camden is XX% activity. releasing I you that of

Alex Jessett

revenue. Hey, Rich. That's total

includes all package our other that residents. provide that amenities So and our the technology we

it's of rents not, then And and asking as in So sort at revenue. three-legged a have we of their the looking and you residents, we to year And our or improve employees. stool, lives shareholders, yeah, back it's our the going all currently. the of lives whether looking to it's beginning are to - improving

all And program We've other of so relief so over the we're our we improve renewals, that resident the the leases. rents Obviously, our is with freeze were the company to and done years across much the that on lives the our clearly, of things the two last and of board improving residents reflects first shareholders. early some fact did. we on the growth that pandemic, the to lives in

the And some take what of - obviously, not done could conscious to pandemic. decision had slack of kind the occurred, some that so early there's we in of days of have we the had residents not allow back made our midst

it's out, the real as it's XX And being is look strong. by driven to out look forward-looking And numbers. you these recommendations days. - revenue So XXX And yeah, after if you all our systems. YieldStar are YieldStar, management

likely So trend continue. is I to that think this

Keith Oden

made that people increase about Yeah, lives. There's you I would without question. a no the to candidate just and smile add. Ric, customer. substantially And comment that their you mean, their at improving proposition I the we get advantage, are. rents don't to time, same value providing

maintained have improve line them support our driving grounds, located. we're properties, for top-line a customers for to value themselves. to are well clean Because we have to today. to have our bottom, you our business way we're the driving well value create and be rents our have you All and to have those bottom propositions understand that You them need

the we is And those industry, more the customers average look your when but reinvest can you well. is think the doing long proposition money about And news they're somebody housing of good you go proposition ongoing of affordable don't is they're of don't there really, sort price and to where the growing understand you are that leases. down folks do buy more And all this housing pandemic should something that with on owners they really as money improve them apartment grand, safe should care affordable the that this And they're over worth about lives value these our the cheaper. in If have, have go they income When that, took does XXX brand? and and substantially. clean wages else willing during don't number their sure when you the are XXX so brand those stimulus as an at pockets. about and challenge you is cost. and of as That their properties, for of the or And I pay anything that And down well is customers. really you basis people of quality our scale the that things. But price. understand the and meaning are of make the go all up. take and the with can about like with price got is grand growing those things update always It's pretty you higher say, you all you renews it you less in think care actually a

go can less a experience. and but rent Camden lower a you get the quality You apartment don't get to

Rich Anderson

to didn't the on I put mean - defense was I you

Keith Oden

just That's okay. selling right that's the It's defensive, not way.

Rich Anderson

the Of And with that XX.X, the fully rent. year. else? trying off I July? you is rest when Alex a for in everything just just ask a of expected with the rent? XX.X mentioned is that and that of baked direction that all I'm is that Or also get how and reason this blended started XX% fees much pure of Is to

Alex Jessett

Yeah.

basis. rate that blended that We is about and are XX.X fees, north up pick fees slightly XX% those So talking pure growing is the rate rental that on X%. and a we're of other do rent other

Rich Anderson

very much. thanks Okay,

Operator

comes question Janney. with from next Rob Stevenson Our

Rob Stevenson

them, from when underperformers a look it's in And Keith. to markets of are But days? guys. guys them to have you're what sort take the you're morning, a bottom if are markets, when the are performance on relative at wise? these up mean from order rank a forced step towards XX% July. them what you that Good basis, hard up of I the that the differentiates sort

Keith Oden

only, a in to last quarter X%, it beginning down still in positive rank XXXX. first down now the was where them quarter, somewhere go maybe X% you it instead or up has if you're year, at But of the blended at And bottom, fourth is about probably Well, flat around or rate. X% still was the of Houston just the substantial you're the you and looking Houston. from basically bottom. talking Houston to scan XX.X of just down and

the is trade Everybody Houston it it be or fact high applauding would fact the applauding XX% fact X. as we is the at or for be weren't would that that if So rest as X portfolio producing of the the out.

it force in. going relative, extraordinary you at growth be to market if be every in that somebody we're the always to that there's single bottom you If these are rates

Alex Jessett

I'd guess DC any where there's the proper that on say DC increase. where that a ban market - I worse rental was

Rob Stevenson

big pushing its market rental the day of when And you're of I concessions Okay. you of I driving look the jumps in rate versus Like of how effective mean, are - of most? mean, much the at at that's of and rate are then so - or pushing removal the the here performance? in it's terms markets that, the removal part the that occupancy the the it's rate. on the where And not concessions market it. versus end jump

Keith Oden

the the But concessions only portfolio. is of and concessions And And expectation new don't concessions. any Rob, part process the on we we time residents. outside of that's - just use it's our across use that developments. of development Camden's pipeline, part of we marketing any don't have ever

rental pure So it increases. is

Rob Stevenson

folds half you sort store the at a first How into in to XX out growth did as the you Alex, of you? then half, midpoint And of first go of how Okay. bunch costs back same XXX of expense guidance? the the half the operating to year? the of for implied from Curious sort push

Alex Jessett

based entirely upon tax It's absolutely. Yeah, refunds.

tax to in tax entirely the the of first in the in exact same XXXX. the refunds of number, you XXXX, refunds. we $X.X So of we $X.X half million entirely the year. came In XXXX, numbers half second are of They coming anticipating million about give had

So it refunds. is just tax a timing issue around

Rob Stevenson

Okay, thanks, guys. Appreciate the time.

Keith Oden

bet. Sure. You

Operator

Our comes Nick with next question Citi. from Joseph

Nick Joseph

Thanks. Curious Nashville you large how term. to acquisition in near pipeline, the on the be expect

Alex Jessett

we you up like really X% We'd to apartments need actually - have to In to near When the to looking or and XXXX-XXXX X%. scale economies Nashville to of need get efficiency level. efficiencies, get that start term. we at

to Nashville and going be we definitely continue push so aggressive And to are in there.

Nick Joseph

are or there that then over be And next may you other two? the year Thanks. any markets new entering

Alex Jessett

our so far. Right Nashville interest has And good been in now in the we'd markets. like

where we today are pretty good So we're for now. with

Nick Joseph

Thanks.

Operator

Our next Sweitzer Amanda question Baird. comes with from

Amanda Sweitzer

interest bit a you update prior Can your in of pricing your you And a buyer provide Houston market expectation? Thanks. are in Good more seeing on where morning. an timing? relative like disposition to

Keith Oden

Alex go ahead and talk about timing.

Alex Jessett

absolutely. Yeah

assuming happen model, we dispositions in our the are So on November X.

have week. We two next going that Houston County, market hit assets just assets in the two in the are We've which market. to another got hit PG

any updates a sort bit of to pricing. it's early on little give So

that Although had much we went to certainly going prices the strike better we we original first when out. do than we're expect

Ric Campo

the the last And around brokerage days. XX our to specifically XX community with Houston, conversations in

that I the out hard. it's clear really, are Houston think is word really accelerating rents that

telling they're a generally whole Houston. just lot in what more think us I so And interest is

have real we'll assets. is the to how all positive wait outset, in plays for and improvement selling going be out. Houston see a But, it clearly overall, As to

Amanda Sweitzer

relief I where in Yeah, then payments at missed finally stand it, you're under to point? terms expect them any you payments meaningful and evictions this do And programs? that's potential could of if once able but helpful. in rent receiving be you apologies process California how Do for you

Alex Jessett

of obviously, So of Grand which came for right the we're year-to-date. we're $X.X around most total is, quarter. million I'll that sort the that receiving. hit And is in payments us second ERAP, just

So in some get starting we're - we're get get California. traction to starting to We're starting traction. finally some reasonable to

of delinquency. our is ERAP about about is California and XX% making our up of payments Although XX%

because ways market So interesting, around we has then certainly is us, is go which have collections. Houston, delinquency which right two our of a the it levels one for the And XX% also of is number there. lowest to

the we've any of coming year. But of any an ERAP we've receivable. have million the as don't assumptions, throughout we assumptions significant So about, got $XX talked in rest payments sort for

to working keep payments we're going obviously get So some additional the hope and process in. to

Keith Oden

million I million think reserved XX like right, of course we've $XX Of the Alex? $XX that receivable as

Alex Jessett

That's correct.

Ric Campo

Yeah.

downside. payments. not get be It'll we So upside

California, I over and debate about night evictions, Now me the really whole that's talking in last your residents someone CNN million XX about mass interesting or get think or question of any in evictions to thing the there about in was watching or are evicted evictions, I portfolio company's but is And portfolios. America a is the Camden's public risk the that to when moratorium risk off. CDC not comes that CNBC going

saw of are strikers. XX% And California anybody fees, receivables you night the reason, I on that penalty for you rent the Newsom else or If as And and for you to There's going people our have is not unquote there's State pay no of rent also is zero on Those well, rent. interest, nothing. Camden haven't last you there's rent. know at in receivables California, months, making don't that the receivables are a news statement no who look penalty. paying the no your to your Gavin paid if XX those COVID late quote get there -

XX% America. of for it money what line people reached a why confusion this XX that there's U.S. those it. of owe California, has so to It restrictions But that less little $XX a restrictions if months the are than ever only allocation is or than the that And testing, going when way, has for of is, about XX% money a in in that, the - it. means billion resident of government's the hear has on that you restrictions. And rent pay more the is bottom has renters yet lot by government

that million to ERAP or one money be And account Maybe question million, be not million sudden, to who We've going cash their because driving residents apartments it. a maybe of to all to in ultimately, us, have their to for pays be in enough to $XXX some apartment, $XXXX. pay the not in people overall, don't people a everybody reserved making the in that going $XXX a interesting least paying against what less And big the that think money So will, going to of ERAP and it's needle those when month Tesla's, benefit. have, are rent. will $XXXX the them? is that a needs will it's are move us in going see, bank have way The needle. of to at happens and go $X get it's to but rent. destroy And to out, to to ultimately their out But or Hollywood their take credit. our leasing they people money. $XXXX we not they'll We'll a month thing move money. for their aren't $XXX,XXX account $X to $X don't another. they bank are California figure needs $XX,XXX our need And It or go people

little for point. my soapbox So at support that's this government

Keith Oden

our I it's plus we I for We these the interesting in out are definition have numbers Because our I'm - it's Amanda, portfolio, perspective. XX,XXX - is we probably months Yeah. would an Certainly or get agitation. just that. high not moral more to behind of get but think put speaking delinquency add XXX that minus myself, agitation, have we total And more rent. three residents. on there always in or apartments, of a a our probably pretty financial agitated

little than base. of a resident bit our - less X% X% it's So total

high that off or numbers, all written huge of not So delinquency as of it Ric terms kind said, balance terms a anyway. in irritation. of it's XXX we've But it's and high big in of delinquencies,

So anyway, portfolio taken in keep our the work we're we're going are get going process. make of. who the they sure eligible, And to care for to residents in that

Amanda Sweitzer

commentary. appreciate perspective that all Thanks, helpful. I was the

Operator

Evercore. Next question comes with from Rich Hightower

Rich Hightower

that markets? what good the owning out expand - are them are to wanted for new though edge that Camden's Hey, your in those into new methods sort operating are developing can you even on your markets maintain to a Camden. guys. to of and morning competitors get I employ not there, that lot of for the take in And fact or starting

Keith Oden

markets. vast these your news is multi-billion Well, dollar good the They're big markets. markets,

you, what is And to right shows California, just would good be it we years and about tea. America how states. tough Southern and that talk of I and in the was will California, our are to thought the not and flyover best to had years when pandemic flyover have So that conferences really move it tell pro-business to say places necessarily comes during years, in I for parts which go we our you were and say the part coasts from times cup of perspective our of the to experience

the So they and good how we peers start other with love operating said, then is company markets edge big We'll show market our when just in against markets. public able Camden's our be that to numbers reporting competition.

competition we with welcome market and down. them the to on and, friendly the It's great markets. So, come to

Ric Campo

we in better. companies I Yeah, they I raise lowest The all that rents would They business the denominator where add when they should. all aren't still that public that to I all our they use frankly third-party with common is managed mean, compete make would - management. market well. smart, revenue We just the very them. assets managed probably

the with competition evidence a So area lot a we a the significant is to do. DC of have that in marketplace, of better in tend been have the competition metro the had high-quality and And and we the presence more among California. where we - we've other

sharpens it's steel So bring and steel it on.

Rich Hightower

for the Thanks thoughts.

Operator

Brad Our next from question with Heffern RBC Markets. Capital comes

Brad Heffern

there, just Nashville the just through given already ATM? can use in dispositions, you acquisition, talk we're the the obviously $XXX of everyone, with million proceeds funded Hey,

Alex Jessett

absolutely. Yeah,

minus. So those plus additional or of about if you our midpoint the proceeds we'll Because think $XXX is done acquisitions. million. million we've acquisitions for use And $XXX

those use we'll development Additionally, our pipeline. for

of a this at as dollars couple million spending which we're time, another million year $XX developments, funding hundred to repositions we're couple and as in year. a point So well a fund

of got sort we've So capital. of uses the plenty accretive of really

Brad Heffern

looks Okay, rent do got next still we it see in supply see demand that increases? XX% XXXX? July. go we last imbalance. people higher my year, thing? still year, of normal to XX% again going than rent I it. in Are you significantly about you to going can't raise XX% just Are kind increases just if thinking the same Like, what think then do Like, rent And these like

Alex Jessett

But our get not as at to strong and the just shows the providers, in XXXX Well, going Whitten, XXXX of guidance, reopening some of we're continuing multi-family you well, sector. demand into Ron obviously. he very data look backdrop if like

either long-term at look have to grow you don't And when you a come usually big you trees recession have the if up So pandemic, you obviously. - of multi-year history the a legs. out sky, or downturn, of multi-family,

growth I XXXX, we've revenue was been in we market 'XX-'XX as The true, a our next as that from ever And operating and snapback snap had and 'XX fundamentals think Because has seen the were history. not the that three fundamentals but we have the it we'd came that in would back. would was our that best. that in best the true. be years a was the career. was best told business operating back big snap pandemic definitely but it business a

unless then history. know, you So, XX% said They're not swan expect the earlier paying on pretty here. black based rent. delta are rent something I as happens, have or poor. of to virus, residents delta And good like going Keith is XXXX dramatic would income be a their for we and variant And something that

to in on paying So, XXs. go crisis, they're you the back pre-financial if average

are rent, affordable market it's And look average we so, an And $XXXX. you at if still. our

for And $XXXX. or so $XXXX

seeing. lot as like So to value with to giving relative as a we're increase than is, it the the but And a resident, it. basis the that that XX% growth income you're proposition a sounds on long said, accept there's they

Brad Heffern

Okay, thank you.

Operator

Our next from Sandler. Goldfarb Alexander with question comes Piper

Alexander Goldfarb

Hey, morning. down morning there. good Hey,

questions. two So

we if hear correctly, portfolio. didn't all, any concessions in you of you the First really have

continues. getting base of spreads or rent to off that guys the the rents down more acceleration. So you it's mid-teens the But States, Sunbelt, yeah, use. whichever not Free population people low there's the in still, last copying that terminology moving you're year. in But to that Yes, are of to like a really want

understand demand trying great, like seems who of that just jobs, incredible. Just suddenly a back. time, same last that the tonne better, is or but that is seems to everyone It year just doubled magnitude wants that to the just something there's just be at up everything of

that going an rate highway. which understand. miles increase was pretty XX just a like the I'm comp. were you really to off for up going to So bumped it's hour, at down and It's miles a strong rate an is a coming weak XXX again, not good guys Because a now you of trying hour, and already

Ric Campo

Yeah. we've data is had had think like is of it settle and the in-house this about providers if And quarter The long kind time. at what on happened others. way to talk I debate that this. we having you we best this, in and we look a pre-pandemic, were What Ron that

were of growth And of We most have and a ran step we except looking in from markets of in that XXXX kind years revenue our of 'XX-'XX. year terms been in at up sort a has a also positive second - - Houston, derivatives growth.

numbers, millennials that shut door, you people that the demand we whatever either in coming should - was shutdown. of home rental of not down. have When during market. said, the doubled that with been still the good rental were was demographic you at that look the too, in So had in that a million really at And some just beginning if the that that It period living were at that market are XXXX. look or that at or demand then up the

XXXX, college from So then come, that or people demand have graduating demand places migration, in come the and these sudden, all just down. open vaccines even you up. any and all in the think new in coming that away then about play, shut you into if or a into masking marketplace would happen. And like XXXX, goes in look XXXX didn't And all help you have demand of

the off have same now beginning the market, XXXX the the demand you at XXXX May. at middle in coming the when to end XXXX or All demand market coming the time of light the demand So the of switch to into market. into coming went maybe

- just you have through pocket in want increases be that and the hitting didn't as same causing potted if And to so all people And with. plenty to you've rents that. spike any. spike And have were with money of they the probably therefore the they occupancies Keith they're got have entrance know people time job don't at their necessarily you all up and well. with and who stimulus I

Keith Oden

or it months it on first that of Because works in we revenue COVID blow rents, were were And we're explain X% think as is, the And we budgeting we wouldn't froze zero. to it when add growth would budgets I COVID thing six only and XX% XXXX, it trying on hits those. and and going froze the away. up going hit, X% I if track, we of to to goes how to to our We think you renewals. XXXX. top-line So kill then about were in

So our we instead entire missed year an of increases rental of residents.

so X% in I probably And ended XXXX ex-COVID. think or have we up X% would

just X%-XX%, is because we you're XX in that that of explain, way, this now XXXX, to XX% trying clawback of of a that some And specifically, before. COVID. achieve still to seen you the crazy didn't seen a growth great rental if of increases live crisis which back the So rental the tech financial We've coming X% going number. out is But top-line and wreck. we've

way it's a better probably think But it. at So look to that I unprecedented not level our is world. in

Alexander Goldfarb

satisfy And means so it's of next spilling were year what this year, that. into that you to to into three about basically saying least It just next at this with earlier worth take years' year. demand going

Alex Jessett

providers are I think that's what Yeah. saying. our data

Keith Oden

it's Usually methodical a onetime a not It's shot. process.

Alexander Goldfarb

Okay.

you of competition, said apartments, are but costs, land a surprised I'm question I is given do Second appliances, a materials down Sunbelt development to the hear they've of spreads just your stuff. industrial fun markets. labor of of We lot new obviously widest to that But in been? coming new the curious, a lot sort the little that was shortage entrants all

wide on do development stuff a that on new you're still or yields So the forward, maybe really were comments yields maintain forward two are on But go quarters going basis, three to projects. likely believe spread existing those that you like or to five more temper five and those and something going to that.

Ric Campo

under because revenue our I think more costs our have I we're as think in to increases. revenue, that the markets our than revenue million these $XXX that maintain that have so probably said strong And better is are do developments growth of might our those. in will even projections offset going in low-to-mid-fives. we we I pipeline yields And Well,

the development is today In weighted of cap is the the average And that has high rates have up, down. down. that it's yields reason the terms gone gone spreads, have capital spread of gone cost so not

cap of a And primarily builder, spread. down development our when and it's merchant So on about at a on at of driven our it's compression rate, basis partially developments better point mostly, increase of average your let's today rate, you yield is spread cap on some we And spread say and or positive talk because and the being look a from weighted you're if XXX driven being perspective. are you're been more cost down at you're I normal cap wide, selling, But development X.XX by which X.X rates. your lower a X.X budgeting you're by it's our capital. spread doing a you selling

sort that look getting been numbers the are at their to buy every to land or numbers the you make the where But to it year going at supply XXX,XXX numbers, units spread work. XXX,XXX and work. difficult permanent so that's of And that down, when XXX,XXX still is I I has units are think mean, least there's that today making

Alexander Goldfarb

Okay. Listen, thank Ric. you,

Ric Campo

Sure.

Operator

Austin Our Wurschmidt next comes KeyBanc from Capital Markets. question with

Austin Wurschmidt

Great, thanks, guys.

You've about fundamentals. to jobs a as and of barometer historically strength completions talked

like us the figure? it ratio really explain curious some isn't And your forecasts alone kind what third-party year? jobs what this for also, sounds year I'm you for revised certainly, of then But of are strength. projecting that So next is? enough give to outlook the And can

Alex Jessett

markets over in XXX,XXX end terms what XXXX, $XXX,XXX something apartments deliveries. with entire roughly with supply, Whitten's work line at And in last was in Camden's around it total in going the deliveries so then our of you we terms Yeah, That's Ron footprint. unit about of in range XXXX be still if is year. look to up in

it If at of numbers you makes year, sense ratio. complete terms the in the look this

it looks bullish. fact, pretty In

sense are lot on losses the look it to and occurred add markets, - employment then that back MATCH And numbers, to kind going We're about the we're in levels pandemic. that But with the we like have yet the I our think reasons You where think we demand. still Rick of releasing get But that of and numbers of of the look and pent seen. would a to for were into all earlier one up at recovery. here to demand way, you many think a if And bullish seven just we've XXXX, back it go of talked you still overall. make really it's I you doesn't numbers job just XXXX deliveries. XXX almost to lot terms the and these at look of the look in traditional XXXX, that XXXX, say, it not

temper XXXX. I in the losses by that to think you got

Austin Wurschmidt

a side, And helpful. and with guys everything spreads and that you mean, are it like developers talking the I That's attractive lips then on cost development seems of bit. about, licking the capital. might their be

that as more you shovels or where move perspective ground the three maybe most a activity that seeing from demand out? in supply permitting equilibrium really, and So towards you two or could are the years look

Keith Oden

two I and year of guess cost years make because years, And its looked continues it's or two our pressure it's and a pressure never well Because for peaking, out. said, or three whatever. to five peaked. complicated, out we've or way It the looking either last supplies or banking up.

like that from coming year that And happen what's XXXX. where think the figure down years Ron from in is So now occupancy in it's point out into from slowed some saw world matter a really numbers down I - or to from what's our peak at going of we another But It everything? starts to shows, hard of any at a perspective. seem XXXX- matter every business go this the turns growth if other ultimate the don't every supply. in Obviously, experiment be going is or It's market I months now, time it happen think - high things affect that's from we'll least world policy. in next months that's things that massive to two But that see. recession. revenue great and be think the least to last when or to jobs doesn't now. is going going and an That's right change. to is around When I XX the to have monetary why at pretty XX I we when and supplies will when And looks to forward. tapering how some us at - And And that that's just know. the the and much know conservative fiscal how abate. to to to going now, want market. I going continue not

Nashville but like Austin, look the - the and today. outs and at some we are you some have higher rent others the that highest it's the at in rent out in do then trade highest market. than have Austin markets And You of Nashville trade

So I know ultimately, wait see. the have but don't obviously and answer, to we'll

Ric Campo

the RealPage apartments our - sort of permitting because Austin, future. permit forecasting precise would got on they've year, XXX,XXX Yeah, their or is the this you're for XXX,XXX provider and our data. markets into of next the But activity numbers, least data just permit behavior in most is reliable year. I say The

numbers in And rates. these the reflect cost So don't again updated probably most recent the numbers. compression reflect I real but they cap don't activity, elevated think

a build. between still we're compression cap rate in and race So to cost

Austin Wurschmidt

Thank Appreciate the it? guys. thoughts, you. Got

Operator

with Street. Our next comes Green from Pawlowski John question

John Pawlowski

the call you thank Hey, for going. keeping

cost little for different. A your obviously, a of bit months one few Just ago, me. was quick question capital

So issuing a how thought versus just curious equity selling building you through too?

Ric Campo

Sure.

high those down. it issue So think EBITDA as opportune I of we said And to to debt and seemed to you when with buying have times. between five times that of capital we we terms challenge structure, it investors we're And an come earlier, the was equity the is capital Because our And and oftentimes equity issue. flexibility And in about about going do prices. our we issuing know, it that. when four when think do relates all-time don't that of cost has things. it's time decide regular being selling because and of those And to you blackout kinds periods the blackouts.

time, transactions blacked like we're so to order in XX% execute out the that. of And

capital. recycle to continue will We

company, choice you So sell of It's those long-term, the debt, a one capital. issue layer all produce ultimately billion issue to a have million, year. the We you or not it's that to assets. with either we know things three have those flow company on it's combination roughly and $XX cash free or grow over to hard stock three me, of you And a a million all you $XXX $XXX activities. in

capital accretive But you the acquisitions your at We we So average that's the is equity debt were and to that. or put should continue are the can assets we either that base is weighted only like sell issuance. weighted have the properties basis? And asset capital transactions we and cost books, what on issue And to do of when capital way done that like you issue long-term or mid-fours of you what of balance, on long-term acquiring when cost does whether going properties. of your time six better, And on through books can question the sales putting to grow recycle relates markets through conducive a the the or to capital? Nashville, average in equity other on equity. look

John Pawlowski

And cost on you've pretty given transaction putting ago. mark not year, part and the months but now several better But been discount signaling capital. NAV for book of of sharing the sizable assets understand is the today, developing last I color the

So your just a felt like of selling assets than stock. are source cheaper funds common

Ric Campo

Yeah, the We we're that's million to and assets. of compression I the together beginning put selling why way think and up cap year at the budget rate it $XXX sell with price X. was north at in was when million average of that's stock way year the $XXX the capital our of is, And a of beginning $XX cost acquire. share the a to

markets existing changed between year things program. to issue we now capital the So first of with and along equity decision and made the changed world and the that

perfect. hindsight So, I is always mean,

of, both it sale complication buy if a we XXX% not that cap and XX, was sell. that of able to But both to those bought at that of difficult been when could on the do the it executed low massive have the year And transactions being of would there kinds stock time stock So rate stay last and opportune. the didn't execute have this makes long. assets of a unfortunately, more

John Pawlowski

you. thank understood, Okay,

Ric Campo

Sure.

Operator

Bank question with next Our comes from Dennerlein Joshua of America.

Joshua Dennerlein

I go time about seems as to it's just on the Hey, head you're would, season rate longer and guys. push into at normally influences kind like of It of the Hope going of of how a everyone's leasing just we thinking fall. decision doing this kind your curious than on not harder than that or expected kind to lot year? for whether you well,

Keith Oden

a YieldStar the I that and of price, using levers, on it's to if tool. is about calculations its revenue management think forward-looking really XX basing, looking And primarily system, our days. most at think you that which XXX is its

the management maintain So me clearing looking recommended leases exception an renewals that that will the and recommended system, rare recommendations both take. that What very And occupancy we thinks pricing revenue tells increases, north days. and our YieldStar, being the our market is XX% XX% is price, to around out of rate on we're is, rates. by we of XX% YieldStar new disciplined have that XXX YieldStar the it's

to long will permitted. the as on the conditions continue ground push as YieldStar So

Joshua Dennerlein

tweaks to automatically that? system? Just given curious, revenue kind for have of in next seasonality for just or And just management the change year, the Okay. of any make you kind adjust

Keith Oden

- is adjust time. the the that up have thing do any tweaks around occupancy around property to make we XXX calculus, adjustments, clearing make No, do down happen able but system over YieldStar XXX does. then to be sustainable the period managers over or that Very are a Occasionally or what's out looking we is at days. levels. market of price revenue and that to the get YieldStar small that's The YieldStar what price about you days your have calculus good don't management

Joshua Dennerlein

Got Thanks it. guys.

Operator

comes Our St. next question from Haendel

Mizuho. with Juste

Haendel St. Juste

you know very for call. taking question. it's my I Thank been A long a

question, disruption schedule the the your strength of better of near the impacted COVID the on how next I and wanted up that's leasing that's by been all couple last sustained follow into revenue to How growth to done about the term? been and lease the guess I that's Just playing expiration understand thinking quarters.

Ric Campo

quarter it's less our - dramatic. in markets. fourth seasonality occupancy. those come that YieldStar between But at because just and flop of most third that fourth so couple always first again, traffic it's rent have transactions, fewer levels And we second, are but always available, percent But within roll, dramatic. of our first a there's Yeah, and Vacancies not quarter not fewer optimized there's exposure calculates it and maintains the It's and that's flip quarters. model in rates.

Haendel St. Juste

in prior understand the was meaningfully couple that. than if say during want quarters better same there's number that years the But available just units period. I coming different of the about next anything understand to of

Ric Campo

so. I don't think

Haendel St. Juste

pushing was you pushing and thank turnover? project I more Any sensitivity turnover. renewal be pushing you. how the your aggressively say incur? question then to a you with had other you've push on municipalities willing than you portfolio? can here. bit regions And much more rates been incurring California a there would I bit guess DC, incurring like think Curious, more much more sensitivity a also Okay, And to bit you're more or aggressively, as get comfortable renewals another more wondering How

Ric Campo

can't Well, rents. increase in DC proper, we

control, it's that. CPI there not dig rental cases most in minus. proper. when in we into were effectively DC for there's X% or plus legislation So frozen recent increases California, it, by impacted we're but you In some around rent plus out And

we So feel again, And all increases, of increases. for we rental take recommended all the we the YieldStar. within we those think rental what not math driven It's around like should and around recommendations. sit metrics it's we by like do doing be

Haendel St. Juste

Okay, fair enough. Thank you.

Operator

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

Ric Campo

long. Well, to so appreciate Those you we who on you of are we're list, we Okay, something call didn't went all on the we try get being your If great. sorry, available. answer left, today. this But questions.

you Thank call you. Day. conference we'll starts Labor you call after And So get to or us Kim very next email much. talk Kim back please or and to give season the when we'll a or quarter

So take care. Thanks.

Keith Oden

care. Take Bye.

Operator

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

now You disconnect. may

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