Camden's Q2 FFO & Revenues Beat Estimates, '25 View Raised

Camden Property Trust CPT reported second-quarter 2025 core funds from operations (FFO) per share of $1.70, surpassing the Zacks Consensus Estimate of $1.69. However, the figure marginally declined (0.6%) year over year.

The quarterly results reflect higher same-property revenues and improved occupancy, though lower effective new lease rates partly marred the growth tempo. CPT issued guidance for the third quarter and raised its full-year 2025 core FFO per share range.

Property revenues in the quarter came in at $396.5 million, outpacing the Zacks Consensus Estimate of $393.8 million. The figure also increased 2.4% on a year-over-year basis.

CPT’s Q2 in Detail

In the reported quarter, same-property revenues increased 1.0% year over year to $377.4 million. Same-property expenses rose 2.4% to $136.4 million. As a result, the same-property NOI climbed 0.2% to $241.0 million.

The same-property occupancy came in at 95.6%, increasing 30 basis points (bps) year over year and 20 bps sequentially.

In the second quarter, same-property effective blended lease rates jumped 0.7%, with effective new lease rates declining 2.1%, while effective renewal rates increased 3.7% versus expiring lease rates.

CPT’s Portfolio Activity

Camden has four communities under development with a total of 1,531 units at an estimated cost of $639 million.

During the quarter, the company acquired a 360-unit community in Tampa, FL — Camden Clearwater — for $138.7 million and sold a 337-unit property in Houston, TX, for $60.0 million, recording a $47.3 million gain.

CPT’s Balance Sheet Position

CPT exited the second quarter of 2025 with a liquidity of $717.5 million. This included $33.1 million in cash and cash equivalents, and around $684.4 million of availability under its unsecured credit facility and commercial paper program.

Additionally, its net debt-to-annualized adjusted EBITDAre for the April-June period was 4.2 times, up from 3.9 times in the prior-year comparable period.

2025 Guidance Revision by CPT

For the third quarter of 2025, CPT expects core FFO per share in the range of $1.67-$1.71. The Zacks Consensus Estimate presently stands at $1.68, within the projected range.

For the full year, CPT raised its guidance and now expects core FFO per share in the range of $6.76-$6.86, up from the earlier projected range of $6.63-$6.93. This marked a 3-cent increase at the midpoint to $6.81. The Zacks Consensus Estimate presently stands at $6.80, within the projected range.

Management expects same-property revenue growth of 0.5-1.5% and an expense increase of 2.0-3%. Same-property NOI is expected in the range of a decline of 0.75% to a growth of 1.25%.

CPT’s Zacks Rank

Camden currently carries a Zacks Rank #2 (Buy).

Camden Property Trust Price, Consensus and EPS Surprise

Camden Property Trust price-consensus-eps-surprise-chart | Camden Property Trust Quote

Performance of Other Residential REITs

AvalonBay Communities AVB reported second-quarter 2025 core FFO per share of $2.82, beating the Zacks Consensus Estimate of $2.80. The figure also climbed 1.8% from the prior-year quarter’s tally. AvalonBay’s quarterly performance reflects favorable same-store residential revenue and operating expense performance. 

AvalonBay revised its full-year 2025 outlook, reflecting higher same-store NOI, offset by the delayed occupancies' impact on development NOI. AVB’s total revenues in the quarter came in at $760.2 million, missing the Zacks Consensus Estimate by just 0.2%. However, the figure increased 4.7% on a year-over-year basis. AVB currently has a Zacks Rank #3 (Hold).

Mid-America Apartment Communities MAA, commonly known as MAA, reported second-quarter 2025 core FFO per share of $2.15, which surpassed the Zacks Consensus Estimate of $2.14. However, the reported figure fell 3.15% year over year from $2.22. 

Mid-America experienced a fall in same-store revenues, with average effective rent per unit declining year over year. The company witnessed low levels of resident turnover. Rental and other property revenues of $549.9 million for the second quarter missed the Zacks Consensus Estimate by 0.4%. However, the reported figure was 0.6% higher than the year-ago quarter’s tally. MAA currently has a Zacks Rank #4 (Sell).

Upcoming Earnings Release

We now look forward to the earnings release of another residential REIT — Equity Residential EQR — which is slated to report on Aug. 4.

The Zacks Consensus Estimate for Equity Residential’s second-quarter 2025 normalized FFO per share stands at 99 cents, indicating a 2.1% increase year over year. The consensus mark for Equity Residential’s second-quarter revenues is pegged at $769.26 million, calling for a 4.8% rise year over year. EQR currently has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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