Camden Property Trust (CPT) 29 Jul 222022 Q2 Earnings call transcript

Company Profile

Participants

Kim Callahan	Senior Vice President, Investor Relations
Ric Campo	Chairman and CEO
Keith Oden	Executive Vice Chairman and President
Alex Jessett	Chief Financial Officer
Austin Wurschmidt	KeyBanc
Nicholas Joseph	Citi
Derek Johnston	Deutsche Bank
Neil Malkin	Capital One
John Kim	BMO
Rich Anderson	SMBC
Alexander Goldfarb	Piper Sandler
Joshua Dennerlein	Bank of America
Robyn Luu	Green Street

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Kim Callahan

Good morning. And welcome to Camden Property Trust Second Quarter 2022 Earnings Conference Call. I am Kim Callahan, Senior Vice President of Investor Relations.

Joining me today are Ric Campo, Camden’s Chairman and Chief Executive Officer; Keith Oden, Executive Vice Chairman and President, and Alex Jessett, Chief Financial Officer. Today’s event is being webcast through the Investor section of our website at camdenliving.com and a replay will be available this afternoon.

email slide slides conjunction on will later or a remarks our our have today those and also by will presentation with in prepared website We request. upon be available with event participants All afterward listen-only the ask be [Operator recorded. an note Instructions] to this will opportunity please being mode in during presentation is and questions

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

is reminder, release quarter over we hour Campo. are call respond non-GAAP time, phone and to call and would speak Ric by rejoin includes if measures, this you we At to after items your on to to Camden’s two that discuss. second be you the unable will queue limit email the one turn call. our will the in questions questions the at If discussed everyone XXXX which additional or complete complete additional it then reconciliations to section call I earnings queue this in to have with happy hope We be camdenliving.com today, concludes. the to financial a website within Investors As of available our we ask to

Ric Campo

important held financial of real The conference be two Best Together, and Camden of fall, Annual for as of most that culture baseball consecutive able conditions. will a and Leadership inside with always today’s which markets brings May, After the our lot to Conference, has earned three Camden was music events. a on-hold will estate plus companies together that Thanks Camden. In is to from a days continue this The a created with reconnecting cultural great an Fortunes leadership and years [Video the culture in XX but which meetings, together theme serves highlight build. our was you learning, resonate fun. years. team XXX rise thrive have May, in Camden to reel culture will reminder Companies our virtual view year great for good following that A XXX for place which since changed of we Presentation and world Camden leaders for in will team list and thrive. all has

place, For has driven growth levels. in XX%. growing last have strong strength increases that housing history, year large our and with and Consumer our XX-year growing FFO been and in by strong wage markets. growth, the best NOI These had a in and are a almost half, growth and gains whopping NOI our XX.X% we FFO savings by remain are driven likely demand into rate consumer built employment to high run for is

are rental apartments double-digit Our despite affordable, increases. the

to demand. moving our cut incomes not are their last year, markets moving more up over migration Our the than their rent. Apartment residents supply in of Domestic to XXX,XXX XX% with roughly led is spend Americans back. has not they

amazing great strong next successes. are with Oden. Keith Up balance moderate sheet, team over couple growth more of With an expect culture, we that believe years, to long-term the growth rate. next but will ready our is a we We exceed for a

Keith Oden

Thanks, Ric.

trends. XXXX our posting double-digit second on and markets XX quarter, July growth was XX property once our Same again revenue few for Now with our for details of exceeding XXXX results expectations revenue growth. a the XX.X% quarter operating

year and to increased Rental at our Given projection an full have blended outperformance of new rate with growth the rates had for improved up XX.X%, for this of revenue XX.XX% second outlook renewals year, the XX.X% the midpoint remainder XX.XX% quarter of signed guidance XXXX leases our up a of range. XX.X%. the we

quarter XXXX the to in was quarter, rates move-outs surprising. occupancy XX.X% is for decline XX.X% at versus above with homes quarter during were the results growth, XX.X% XX% last versus is of and $XXX,XXX. now XX.X%. move-outs second XX.X% XXXX. and July second median to year, the renewals for Occupancy preliminary homes compared year-over-year purchase the Our our not are mortgage XX% purchase XX.X%. doubled the averaged during to and is trending at have XXXX during and last The the price performance currently XX.X% home leases Since turnover for home sales quarter. Net second July trending nearly second at quarter XXXX blended year which existing new matched XX.X% quarter at last

would likely rental So remain rates, increases recent despite the be will homebuyers renters. many in

Officer. Alex up Next is Jessett, Camden’s Chief Financial

Alex Jessett

Thanks, Keith.

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

We Camden million Atlanta. construction undeveloped acquired land XXX-unit, unit, development II, on Tempe $XXX District, XX X Camden million of During new Buckhead, Nashville. leasing acres second development in unit, of acres Tempe, quarter Village XXXX, in began in $XXX Arizona. for Camden Charlotte two completed the land Raleigh. we in of future new and $XXX a of undeveloped a comprised parcels development And development XXX we in began at We XXX on new a construction million

in portfolio. ownership a we located primarily step-up on the across in apartment $XXX.X represented the early purchased which with approximately included the this value our communities for quarter, $XXX The As with fair XX equity interest average common in interest in venture X.X reported, previously recognize gain joint million of shares received of XX XX.X% assets age transaction million funds. Also proceeds. debt. issued second funds we held homes, Camden’s of reported, two the as with to beginning multifamily of involved fund billion the X,XXX markets of the remaining $X.X inclusive at previously an Sunbelt XX.X% assumption we previously quarter, of In non-cash our acquisition, and million, this net in non-FFO conjunction the a years,

years left credit. of million have next million under our of outstanding As we approximately spend the today, we line development had quarter $XX pipeline. over XXX to our three end, existing $XXX under At million

the expense, appeals night, by higher property tax in valuations from Houston. Atlanta year-to-date valuations higher Austin operating million $X.XX remainder offset Last and than share, XX $X.XX remain operations July of EBITDA for net we $X.XX reported increased our to partially the rates and guidance X.X midpoint initial $X.XX quarter performance, our to Our portfolio, $X.XX. XX.XX%. with and for of or revenue from balance from the per sheet the approximately at strong based second full lease in for quarter prior year upon in our Last non-same-store higher of resulting and XX.XX% our times. we lower final to our higher $XXX.X after expected new debt range rental primarily expectations growth variance have our from night, and and year, above resulted $X.XX bad funds of rates in This of debt the midpoint per renewal and same-store second the occupancy share for $X.XX

upon for is midpoint average and XX.X% of average leases renewals year. increase revenue revised in XX.XX% an Our anticipated remainder of new growth based the an X.X% increase in the

the will We remainder the average XX.X%. are of anticipating that year our occupancy for

on increase and to and increase Atlanta, insurance total and of May up to increase by anticipated basis midpoint expense total same-store increased insurance inflationary maintenance our valuations are of pressures and to approximate Houston, X% X.X% the our year-over-year. estimates. in makes have expenses now higher our XX% increase renewal. increase and offset approximately anticipated Additionally, previously year-over-year, total This XX% approximately and mentioned we tied costs an growth expense X% XXX lower-than-anticipated and the Austin expenses our to now XX% approximately than of from point expenses our makes make repair maintenance by and our Property is up X%. partially taxes successful is policy of by results X.X% from anticipated tax from now to year-over-year Repair prior up anticipated

from increase from of per share Last per night, guidance XX.XX%. result FFO from and of revenue additional adjustments, a our midpoint NOI new development increase per to same-store guidance approximate This expense midpoint also XXXX and our the non-same-store $X.XX primarily an NOI resulted increase $X.XX of same-store our XXXX guidance XX.XX% $X.XX midpoint from increased NOI $X.XX a our our portfolio. by and the for As we revised increased share from been share. of year $X.XX full has

third the quarter for also earnings XXXX. We guidance provided of

additional to time, quarter. by range We second a rate $X.XX. and expect variable from development $X.XX from $X.XX partially the our second recorded we expenses the increase resulting increases our increase offset partially This sequential the At related open lease within an additional revenues offering. same-store result shares third midpoint offset related The incremental and in the higher call is FFO increase primarily to of non-same-store combined decrease in to utility impact of NOI, portfolio. sequential quarter NOI up outstanding approximate leasing from periods, incentives, to share the These share per of in and be a $X.XX of our and are $X.XX FFO questions. higher early the represents interest quarter of $XX to this for from the will expense during $X.XX equity by increase peak the $X.XX per expected the seasonality

Operator

come Instructions] go Wurschmidt KeyBanc. will the with [Operator And Please ahead. first question Austin from

Austin Wurschmidt

half could had just update was what the and morning, Good color that in curious I previously transaction planned market? an on everybody. general you you the on are us the seeing disposition give year some if you Hey.

Ric Campo

an ten and on market of the the with markets going transaction given experienced, the sort with that’s dislocation everything increase substantially, slowed obviously, the the in have just that has Well, Fed. down year

product on -- market also the the clarity. that me, a anywhere are we the on we -- kind rather for more basically about think return market When have XX%. discovery probably excuse here, so depends gone from space XX% So values have decided for have early has buyers needs up do value-add about, folks, using really have pretty have just what’s the thing. to everyone that lot really properties changed probably work that gone their XX% It leverage and think equities and XX-year-old the the that of most game the gone to of you down impacted happened and of capital sort off what to XX% were and type, the that when of being taken down has them you XX-year-old our are the and cost with waiting price leverage to dispositions we much than table think

And margins portfolio selling we have be our that continue of exist, a sellers we after were where to on so together buying quality of the the through and continue we to portfolio said, will out and market and We at improve that come you lot market think, Labor pause there ultimately, are will the monitor been and Labor starting to and Day, to right probably see long a able figure selling the capital be to -- is. diversity that the will still the time with a will wall and where the of improve clarity, of when for there, but do -- after that, to year. think about we of geographic it sort buyers end of now is the Day and kind think I come -- more that that

Austin Wurschmidt

that growth and slow question, you long-term then, historical expect you sort up growth catch the should And prepared still sort in supply to of mentioned ahead, average. but of exceed remarks in second years to that your

level kind gives I are you sense exceed that? that presumably of continue So, of average X%, you long-term but is given And what average that to to of confidence then, first, put point guess, today? us that a projects a just the you could guess, that production the X% on you what on can could I give

Ric Campo

to take that. you want Keith,

Keith Oden

Yeah.

XXX,XXX at look planned markets are about you from deliveries the Camden’s if got XXX,XXX. this across going year. Ron So Witten about for XXXX relative that to has to completions up

beyond percentage not out we flat. then meaningful, stock, been it’s have as start the line you years stay of where that, of a So last couple years it the look if for it’s but really with the and in at of fairly

in where of forward, come roll I strong really new we start out of range renewals, is growth we well you if continue embedded range. years in the at on NOI this thinking growth easy this we is I X% as the X.X% mean, So last XXXX Camden about the across average start to will out XX and the over strong on really and kind part XXXX, really, leases. portfolio long-term as in as XXXX mean, where point get somewhere

about consumers So, in you affordability think now as I are layup dealing to kind to XXXX normal have a of being we and higher think issues that sort of terms continue the alternative renting their as than to which right going of in starts. with it to home, home number decline you of I buying single-family as -- dramatic are see I see the is are we to a think think pretty likely long

the benefit virtually space. to types have are and you all that I continue just going So will housing in shortage to of think it to multifamily continue a

Austin Wurschmidt

that. Thanks for

Operator

with ahead. Citi. go The Joseph next Please from will Nicholas question come

Nicholas Joseph

more Thanks. a comp demand strong, more the seeing back days demand focusing Maybe, XX of on of but you the out on numbers that, but there. on look you challenging any consumer days push any kind side, changing, following obviously, as remain XX pricing? or up or signs Are July

Keith Oden

No.

quarters. we be rates been new as days days we to But across and trying come XX% are really it’s increases for lease good our talking our XX% to period XX% have you look most we are almost year out XX XX%, rates running our going continue time -- in of out last because just renewal of to and We occupied, XX to on we so. out are shape, the case, our not. I and couple been down currently into really where numbers, continues on renewal we lease a rolling Turnover of that we and portfolio. last are definitely about or new obviously nearly XX%, pre-lease were still be low, are to XX%, mean

the into And have the not quarters. sustainable as to so been of we run at you it’s you just for are just out stay couple comps, those not -- that levels last

it’s clearing be will it’s know, kind push to our down, but we rents if Everybody still that So going markets, have, of the our the going occupancy kind we of model the continue level up come of market to price. as we going we continuing to is maintain in see to people in that numbers fine. rents that happens, be strength continuing the fourth I But those think as in are long down to great for submarkets, sure. and reality were quarter, to will to the increase come the that

Ric Campo

One of the things I think…

Nicholas Joseph

Okay.

Ric Campo

our our consumer in important look year-over-year you up well. is about, doing income that for jobs. When it’s have are … Camden at XX%. think residents, all and that consumers gone to almost really is increase They

worried and on six especially end make to XX% and not six getting the ones their inflation those pressured. income customers pressured savings the and most income our folks that of XX% about that paying the that worry, and they at end they stuff. are for they guess, are so that to about going interest And are rent financial are comes but be inflation and probably average when you Street consumers sort I the that’s of and good So on to impacted income rates. we not XX% side going It’s it darn low and of the really lower on rates Wall folks are to and too as are are that are growth figures folks all worry and are also the important think and rent. about pretty their think And the when down doing of think figures I I

are They are But in and marketplace. our residents are are they they ends that financially worried But stressed. feel future the can we in are well. more about happen their incomes. with the they meet to not stressed, making about So going than doing what’s

Nicholas Joseph

that into but more lag thinking And and DC touched basis, this helpful. of That’s are the and about are probably Thanks. relative strength the guess, Houston. importantly XXXX? two How broad the you markets, all year across back markets then half those really on I you a on

Keith Oden

the but that relative a obviously it was and that the revenues weren’t has portfolio. you and X% lagged relative Houston of think, roughly said in put So for that’s, fact if the I DC, our think in -- and it’s the basis that to on that think rest and portfolio second basis our those and Houston quarter would back up I that be into in XX% a and you a turning about DC, up Washington, XX%, on XX markets perspective about other on just important to were numbers on flips

one that XX% of obviously, that be previous comparable we roll to DC continue year-over-year for -- implications this I year, think we X% to that, for that we the probably and in where stack for as a of into close difficult -- these the much, and is those these comp. and the year, on periods renewal in anything rents one into things where Houston numbers the renewal to gets have we the push yet, as markets much increases last levels X% more to at the would had

they coming in -- outsized markets in the to what DC get we two last have in increases one period. rents think little probably I happened raising renewal be aggressive -- to because there’s bit So didn’t and more in more the the -- just raise, Houston, our rental in a what opportunity of have -- and what those XXXX year to consumers and probably we in have going

call. will pretty set. really we picture give a those the think, markets So next comp clearer able -- be a lot the in have of you that I this is there I in end on those two obviously, good at hopefully because pretty and upside by XXXX, decent two basis But, just upside markets the think relative to of

Ric Campo

so that was to sort and because -- were just in into terms And who if are the people what DC they of complex, you probably if proper And prices when from were evict very the high DC people back investors -- doing paying, them more now, economy, DC the and need yet COVID about they of energy Also those you thin. want the looks it’s not think has whole California and combined opening the and in Austin, because in of -- not when it able being are just the about to. Houston putting running then animal, they like dividends have like exploration. the make ultimately last jobs. fast in than you -- I billion rather region jobs X,XXX added, the the folks. interesting, Dallas Houston, job as week, wanting are didn’t as energy because because different big picture just Houston’s complaining but Exxon $XX companies they to jobs Houston, do Chevron back and related energy for last better of issues had a to add in reported add that think, -- They continues and and nature ESG is the gas and time, And month dollars expanding didn’t

Houston tailwind, market on a is I there so the And of because think that.

different maybe XXXX. in DC intended no or and very tank maybe markets pun at are intended the in with as I gas Houston. But kind of for they look them So

Nicholas Joseph

you. Thank

Operator

ahead. question from with Deutsche next Please Derek go will The Bank. come Johnston

Derek Johnston

on growth an further loss opportunities update to rent you and thus lease the year? portfolio Can everyone. your Hi, next provide for

Alex Jessett

Yeah. Absolutely.

is us X.X%. loss lease for right to now So about

Derek Johnston

been development, And really some supply cost and markets then your Excellent. where seems growth Thank new on seemingly benign of you. strong, outpacing increases. rent actually has in

development to view what given you company starts a need construction see Thanks. really progress? and would beyond how ramp to new this backdrop you So

Ric Campo

think The saw you bad quarter land development are you we were this that our -- up news, up. added But moderate. we to are is release, and is don’t starting good news in down, costs if The that revenues we to positions costs go we good going costs but I to costs have that think and the are continuing news increase on Well, news, think and slow. the think development. is to -- We earnings continuing are are in bad I right? work so starting

has we continue So a been to for development ultimately that, us to will continue business build. do and great

of I market that as legacy capital cost, think sort down land get portfolio think the settles had next so not last on that in be and of, the are -- the right for year ramping we has down couple once have sort and focusing now, of we of will up months. and terms existing scenario what and term I the that cost is long we up of just that

weighted we be the now still cost good sort and able a where But business, will think of between of we spreads on sort average middle probably our to business. make to of still in of and really I the reasonable see that will long-term kind the out. think, fourth of and wait capital quarter I it’s development settle things

cost contingencies from If sort look with in average pipeline, Xs and anywhere still pretty big low you even to yields we I numbers that construction are business good environment. Xs mean those this our low in that’s have of at

Derek Johnston

you. Thank

Operator

question will Capital come go Please ahead. The from Malkin Neil One. with next

Neil Malkin

following the development I Hi, guess on morning. maybe side. everyone. Good just

I to seeing won’t it numbers well, seems delays, make are wanted about initially forecasted. you maybe, probably the see if, you you talked You development guys like

you We up hoping regulatory would just a you the that next Can quarters is of be could of you the over kind et costs talk where talk about and about and if maybe or delays, it’s of cetera? great? function function like that are starts shaping a several see it

Ric Campo

interesting, everybody can things about of issue and that recession I to belief. so and just that cities this done challenge permits I issue and say have get we job is buildings how very about is beyond just and under that you think are and and takes like staff that I inspect regulatory forever are losses talking people mean, yet worried absolutely the Sure. this, it to permits everyone be experiencing big issues would and building stuff definitely Houston, you are even that like issue. mean friendly about And else municipalities markets is. sort to like used

So of into fold starts or year of the that going we next lot this year. to a are several the had starts

through pretty Next numbers. buoyant start year, should Alex, year might those go be you a to want

Alex Jessett

Yeah. Absolutely.

tell we I’d still start is what that you make that are total Neil, think we end our the to So, number. low going of

anticipating… are We

Neil Malkin

What… Okay.

Alex Jessett

So $XXX million is starts. was on we range put are to Camden in Meadow our which starting Creek, million order with $XXX Long Nations, and that our and Farms Mill anticipating page XX. We always of

anticipate those three this we Village will that just last year. mind in started And So District we starting quarter. keep

So make range. we low our should the end of

Neil Malkin

mean, talked Great. sort there Houston climate like on unknown of even you I know quarters your administration’s two sorts green Houston, impact exposure, several the his things impact of the that is going fossil just already or lost, that I the what on the on is these markets energy, focus jobs likelihood loss, a given elevated the would -- it DC on the close be laughable. because Metro idea trimming to are Houston, that of this numbers ago, administration portfolio. your to could speculation take the being be these would Okay. actually there it’s that of jobs having somehow two recent right Other and replace an you the is that analyst fuel, question is its assault having Question up, now. executive an order to and is, Biden you SFR obviously, It’s gone doing are contribution JV in with down the about that and

if maybe Kings can, are of Houston. like the guys So you you

helpful. you if that, So on kind of that give be XX-foot could would your view

Ric Campo

Sure.

green energy which So that sure. the of We ESG fossil any I and in on for are not on forced to and that to the being think, think way need right? mean, challenge there’s about in move is is energy. has transition But soon, things, But change, direction kind and it’s the federal government about think it’s important happens fossil if talk I fuels. so energy about nail clean the is think us issues, hit no much critical to to their climate replacing to do and that the from head, you that really is it. people fuels because an companies happen I just time and what focus you

have of the and energy an infrastructure system made the cars investments how as take You provide world example. to in electric grid just and major have we in the to

So a to might us be our the our just to to to car those. we a give it -- more in couple in give ESG car -- robust the that in you. charging you power example. had in we of sure we wanted EVs are our I EV how our to what our can’t none utilize weeks that stations We we today. the companies positioned challenge in we debate that garages wiring developments, ago our But and have can’t our I If a we think about -- small are have Committee, of will power making one put wanted apartments, and do new future, have in if infrastructure an many in station we is have every in agree garages every get to for

be is climate that and there So have get developed so transition. to issues change us many to really to and us to get

years in say, last So, really XX giving investments back lot been of of it’s that’s negative XX capital. have and by I the but have investors, seen, have interesting job investors companies in capital or the that years, energy unless cash And are didn’t -- should and the that on you we think giving that a back and that the there push Houston have over not was effect had. really ESG industry hasn’t driven industry we also Houston, the we part energy seen you Houston, you and been a flow give the us growth energy

companies pushing And supply. energy of the market -- to and more has exploration, driven in to so be less up in to oil -- is less cost be the invest which limited and less infrastructure

world. the and the be you be is is capital So government bunch Ship project and Ultimately, I billion example doing $XXX a going Exxon to a think, by is there Houston in Channel. for subsidized of Houston federal long-term, is it projects, the that big to going of Houston clean in energy capture is have carbon it

become be And know, they energy to they year don’t in XX smart think companies to are they think, doesn’t don’t it’s that well I pivot made but I a not issue, long-enough be period, in become is for I happen that it’s going a think have and years. do to and have made I one like that where -- are two think, don’t they to years, they five long-term, to enough XX Houston transition a long do is being where -- Houston -- and I so, or know there definitely will years the ultimately, year, a think, a so sure. complicated And And and dinosaurs maybe transition. that Detroit. position will

Neil Malkin

Thank you.

Operator

will question from BMO. John Please come next The with ahead. Kim go

John Kim

could on Raleigh? you update Thank overall development if you. I the in and yields am your started pipeline provide this on an the on projects wondering you quarter

Ric Campo

Sure.

on that XX% lot classic are is are there. at we development So cash construction rents some have low underwritten to and that Phoenix low have or a actually those at Xs under in -- rates almost very in up is X.X deals the cash pipeline in lease-up you lower increase and

to underwrote under than then because that yields that are large, So behind of the our is are lease-up originally low -- to Xs low existing and the rental we construction And X. And from better. started anywhere hasn’t pipeline X increases. our by yields better and

John Kim

separate these X.X% X% X.X% then earn-in year to X% X%? with confirm Okay. but and items year, up talked you lease. can you there are about revenue to just to same-store market that move all based starting Great. for are that’s wanted on your loss next on a I And answers, next the the for additive which then rents,

Alex Jessett

Yeah.

we everything at earn-in So look at if going what then. is way froze and anticipate and like it you the think rent we to the to is about just the end right roll way XXXX we the calculate of look

Obviously, below have number. are lease, that’s to place you loss froze component are that And I right? you are get is for to then leases how you of there a of so, and that in some mean, those that Because with associated freezing market. right that X% is everything the XXXX that

John Kim

And market as year loss achieve so numbers? growth assuming to rent lease you could the the the what rent next effective is

Alex Jessett

Yeah.

necessarily Assuming right to up renewals you market as you everybody market, don’t X% everybody to increase we take took to know, have there, an up X.X%. up you and could market. But you take if would our

John Kim

Thank Great. Yeah. you.

Operator

Anderson will come Rich with Please ahead. question next SMBC. go The from

Rich Anderson

music turn Let off here. my me on-hold

So…

Ric Campo

We have on

Rich Anderson

Okay.

Ric Campo

Go ahead.

Rich Anderson

do So, that. I no, can’t

situation as be August, the is the point is at leasing inflection looking we at So July assumed when which still it your forward think could hence the earn-in about of July XXXX, season bigger about freezing end points. July would to signed and to basis extend end that you now that go? get effective, point, difference that your this start a the roll of or Is of you when July earn-in it and to -- versus of is the XXX possible and talk of assume fair Alex,

Alex Jessett

we assuming will the no, XXXX. Well, so are upon of earn-in what that the the so X% plus is based bigger. at of get earn-in is end Well,

So then. that now till we consideration everything from that into expect takes

Rich Anderson

Okay.

Alex Jessett

If looking you QX in thing growth back QX look was inflection in think lease I our XX.X% in blended it and was at you last is are year real the was XX.X%. QX important points, to and go X.X%, if it at to

quarter to year. really really fourth and saw some to third are quarter this tough we the year what So starting compared of we have last in comps as

Rich Anderson

Fair enough.

so $XXXX end someone just the in growing second Say the the end back else’s comps, year, or above is of easier of the is the let’s comps that, year-over-year think year? or are and of but -- year. the you to rent how below slower moved call. it when because half things you to how happens question to today’s And I strange those you absolute question on But about maybe get the year because today is then a have rents, to $X,XXX. asked tough pace, last at weird case. the actual say, the the rent Is rent normally not have by the much so something of at the make it $X,XXX what this rent I in the year, these related it a But percentage increases lower that going of this from, is,

Alex Jessett

at at. to be we are so of comp going to increasing I look rest mean, It’s the looking the $X,XXX. It’s No. when just that you are be to have throughout above asking the we the continue our math, rents year. going that

You a part so in comp XXXX. are at tougher fourth the rents this because quarter year, escalated in quickly much of period of the looking latter

Ric Campo

a positive have negative a derivative, growth but second right?\. still You rent

Rich Anderson

Got Yeah. it.

the absolute paid… are your saying would because guess that’s rent actually So and saying terms -- gateway rent markets you interesting why that in are growth, growth negative, a be peers hazard opposite that you positive is would but

Ric Campo

Well, are we it. not paying

Rich Anderson

…why different.

Alex Jessett

You are right.

Rich Anderson

are not. Why you

Alex Jessett

Yeah.

Rich Anderson

Thank right. you All very much.

Ric Campo

absolute are market understand to how right end though, I understand could they strength anywhere than at the want you of year of don’t I rents in don’t today. that this have given America, the now be less

Rich Anderson

I maybe That’s revisit what understood. have that. to But I

Ric Campo

-- don’t my -- want head math in can’t York that in I or New work doesn’t to San Francisco. even I

Alex Jessett

markets -- now would to be to I I’d well. if conditions cadence imagine that’s but were that falling, true. absolute hard of that shocked a of them ramps right set have those have But, different as That’s mean,

Rich Anderson

my check will I very Okay. much. that. notes Thanks on

Alex Jessett

bet. You

Ric Campo

Thank you.

Operator

Sandler. next Goldfarb The Piper go Please Alexander from ahead. will come question with

Alexander Goldfarb

you like that market. maybe you acquisitions, as curious? to that me, transaction started signing for front, there not start are questions that’s Two like fewer, based down what’s on and development on you are in the morning got deals many just in to any sounds It the about dispositions you guys the -- on that guys Good acquire guys slowdown that’s opportunity happening. pickle are seeing anything for Is talked are mortgage a you obviously side, merchant there. suddenly for merchant the is, first developments your Hey. going here market, an

Ric Campo

and equity not making lot in seen were the of their builders that a opportunities. adjustments I would is X.Xx, no No, now definitely we Xx say really today. stress Xx really market there -- or which mean still I is on will there are, maybe distress. have with say but it’s today I there good not price merchant a there lot of is

the value enough to think design little ready to in cost out was equal and had -- incent project. to a was example to figure more and Nations build zoned our the almost go. building It a them profit and the bit was land would land to and there it But I was complicated is Nashville property or be what not to to -- that sell the couldn’t the they happened their was it developer us.

of have the at so land, I is their think definitely ready is a cost their where equity them province to a partner builder, they or up gone that, there little at opportunities are merchant like to shovel so us. market value willing are the of And or in and nervous profit deal capital sort sell their to they and

on. I But competitors. us of not but we that help there people probably recap and working probably think that for leaving want that’s the are type of some then to what not calls trade of with think a that, -- space is that I That’s do kind have of kind who had are people mezzanine we there I that’s that a that’s out to stuff amount out number that’s that’s there like sure. business transaction of in. fair our of

Alexander Goldfarb

past has folks headline the And Sunbelt the years influx or on second for of question coming other down Coast then from South. areas Okay. been garnering the few moving is, obviously

they of the guys benefit out from into market question but they look out say, I XX% the outside of now more of to buying Sunbelt or people of cetera. have, As went into how have the you call, region, if much been, your to same in Camden versus Sunbelt, market was Mid-American’s they X% coming ask will, portfolio, a et homes, will you that opined overall. And on

coming bit you you bigger are you seeing upscale, little impact a down similar from dynamics a or South? Given seeing more much higher if people add bit are income, away if curious

Ric Campo

South numbers you on -- has been acceleration and about going Coast being that not Alex, restrictions, on or North been has from migration what’s during going that. -- of to however the it’s nuance helped Well, a and was Alex. difficulty the to Go anywhere given the want new. in accelerated What ahead a the on the able to and it’s the I mean, for time. it’s that from time long Coast because some. work in of living people happened it, -- interesting it, whatever us some COVID think when you had for have long on pandemic or the the you sort definitely Alex you call

Alex Jessett

Absolutely. Yeah.

move-ins up look compare second XXX-basis-point you to of the That’s if markets XX.X% from at second basis of this if So Sunbelt came non-Sunbelt all XXX the XXXX, it’s our you points. and quarter, of sequential our increase to quarter markets.

markets. absolutely net New we are folks to moving New down cetera out Illinois, York, the et our beneficiary of So Jersey, Pennsylvania,

Keith Oden

that number… take just Alex, And

Alexander Goldfarb

Thanks.

Keith Oden

Some aggregate numbers around that.

Alexander Goldfarb

Yeah.

Keith Oden

Witten data number XXX,XXX year this goes had -- XXXX. XXX,XXX and to in has total about domestic that in-migration of to markets Camden’s net

to XXXX well. But a effect little for we the at been time in result all as place you a -- -- it continue and looks of turbocharged got this COVID. a as Ric’s complications it’s got elevated level point, trend to So has this it’s from very like in long

Alexander Goldfarb

plays of the migration? Which growth then guys you it inward continue sounds at versus -- Rich’s like perhaps Anderson’s Rich you on getting rent are slowdown looking this the half into year why positive point elsewhere, back in are

Keith Oden

Yeah.

story. that’s think of I clearly part the

Alexander Goldfarb

Okay. you. Thank

Operator

come go with will from Please ahead. question Joshua of Bank Dennerlein America. next The

Joshua Dennerlein

are kind on just growth. rate you July differences front, Could markets you the growth maybe where everyone. the then Hi, maybe talk about Yeah. and seeing lease strongest the of across

be I would just other kind think to into maybe overall? Houston the pretty of markets you and alluded Area, DC so interesting

Keith Oden

that, quarter prior property the same had and Metro discussed second have then have are year, X% range. So at almost that Phoenix got basically just at DC still already And you comparisons XX%. over you looking we Those the in Houston. our beyond --

Southeast have at XX.X%. got Florida You

double-digits. XX%. XX are markets in our are You -- got these Orlando of XX XX at at I XX%. with mean Tampa

this business are for pretty -- those crazy pretty are those So numbers.

Joshua Dennerlein

the the higher the then property driven me, that rate? you assessments the going municipalities or same-store Are and are felt increasing Board up. side, expected than any by was, tax valuation for across specific of you there markets driven the tax that more think, is or one part it kind just I it And by expenses on of seeing is where taxes

Alex Jessett

be Yeah. got for go values not actually in Absolutely. expected In I that Atlanta Atlanta. sort is in different there out, were originally we that successful aggregate one that of actually will much first can Atlanta of but the had an that the the is three those. in some we increase, initial called XXXX XXXX to protest markets down excess we and had and and expected than we -- some had test so based some upon taxes

usually challenge having markets, were this are that every to pointed taxes. out, no two successful Austin almost were XX% in had at We on The valuation, Austin in in and initial Houston other valuation. in we property Austin, we that increase vicinity. year are We close looking and a absolutely we valuations I success and got incredibly

being of number. in of similar this expected and range protests. once we quite Houston same level, we a sort got our was be us story ended we the then to X% XX% sort not all up So to to of of Houston range through had but got And the in sort X% that to the X% final had and

So are in that some seeing to X% ranges. in it. tell you the and also we to where of pressure give continue will add just that’s us sort that I sort X% general Orlando to of Florida, Southeast Tampa

Joshua Dennerlein

Got you. it. Thank

Operator

Wo Barry go ahead. from with come will question Mizuho. next The [ph] Please

Unidentified Analyst

line am the I I St. Barry. on am Haendel Thanks. for

wondering key you if your expense and Maybe pressures off, or drivers in facing the on the you detail. could I you was revision XX more could pieces bps XX% discuss the expense Juste. guidance? upward first Thanks. are discuss in if

Alex Jessett

Absolutely. Yeah.

really expenses. we XXX a and so that’s major driver the taxes property basis are we our that and for up property there movement again of represent anticipating once seeing that think are property total it, you point taxes so about And X.X% is about XX% what are of if you taxes, to

X% entire total had points and which is on that So the XXX points, we basis originally have XX% for basis gets you the we delta expenses now. between X.X almost the XX

So entirely taxes. it’s driven almost property by

do we and outs. have couple ins other a of Now

and We what about increases tune some pressures inflationary to the that’s on to offset points. had are XXX of have some over us we a now seeing anticipated the really be But causing earn R&M that and originally good X%. basis to insurance year on the going originally it renewal, thought actually up about total we we XX% to was had and it’s is that the for our looks up insurance like

a point got leads the we R&M there. XXX taxes inflationary the So have main so to positive the issues and That in that basis be sort really property of you offsets just driver.

Unidentified Analyst

Okay. Thanks.

sounds it So mostly like it was non-controllable.

So bit the increase, talk what you G&A about your can looking at little the, XX% about that? supplemental, on

Alex Jessett

Absolutely. Yeah.

initiative about our Nest, reimagined are and look of you together. work me, positions up we out and came recall, quarter, at excuse talked this if our on-site up all took we managed with to effectively rolled three where last we a So I communities as last where is year,

took that, of our Assistant service. part that As shared a and into centralize Manager position we existing we

part of manager offset is salaries service fact property G&A in and offset more shared have remove an you now lower then position. So the the we system the than as in

Unidentified Analyst

you. Thank

Operator

will come from Luu Green question go ahead. with next Robyn The Street. Please

Robyn Luu

all. Good morning

markets? any notable in so Keith, supply have off Let from in on concession pickup with me with, start a question you heavier developers seen

Keith Oden

roughly to for our has strength we concession to been but of that’s the game where in less do rent they month yeah, the have and that just for new them always developers -- world, There with of our would our of include have But for concessions. concessions lease-ups. same don’t is and include year, in the we any in be. have that absolutely, in some portfolio. typical we the strength construction free stabilized is have markets one seen the We provision So, our across always for in what don’t than demand kind our less concessions we for been among that’s just -- last markets like in have part portfolio, we stabilized most expected played have

last for less but new the concessions, a overall probably year still all in part So overall of it’s in pricing structure of terms developments.

Robyn Luu

So your guess, own you this not around book? is, I competitors or question peers see was your my just what doing

Keith Oden

less as Yeah. well. They have concession

where all XX%, So rents they market scheduled are going in was were. an what whatever up their from far XX%, environment rents exceeding they pro forma are

to their topline to to they push was. real rents rents back forma push point where down there So then pro continue be where and -- would concess incentive no -- to the

pro guess My So, would all yeah, and or rents, would eliminated they -- to to probably on the then they all better forma. but It that are price mean total rent structure. rent is they concessions. have sticking total are rent is the they just means they market was rents And are clearing month their in that one for adjusting up. non-concessed doing free scheduled whatever doesn’t that

Robyn Luu

Got it.

your year? market. staying at And -- what X%. you have so quarter my the pressure second half Obviously, really second still question is, of pretty Can if pricing sorry, the for well I you second supply power look done the impacting holding July expect and DC any

Keith Oden

in This us. been really issue pressure the -- not has a DC supply huge for

XX,XXX entire in assets which are are that -- not in We a and our the delivered for range, of area. number this DC huge most have Metro the is Area our units metropolitan total year

Area has Witten deliveries scheduled about Metro to forward apartments. DC total If XX,XXX XXXX, the you roll of in

or Ric pointed either you what almost And it’s those the main the controlled have much the where Metro So restrictions out, real governmental lot your out been were, The to expect of but a just all there next it our back process. inability on get could flat I to in rent in difference eviction to district, been DC were do restrictions were don’t -- lifted. have completely not to markets year. those collect or over in of to challenges change with still estate is

we going DC regard last push a lot we to normal more market and to XXXX couldn’t through think really ability of year. So and look in how is I and rents, clearing probably the which just with to manage

Robyn Luu

you. Thank

Keith Oden

bet. You

Operator

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

Ric Campo

Thanks. being after conference Great. today of and Labor you see Thanks beginning at for Day. with the us season will we

So take great a care lot. summer. have a and Thanks

Operator

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

You may now disconnect.

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.