Valued at a market cap of $12 billion, Camden Property Trust (CPT) is a real estate company primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. The Houston, Texas-based company is expected to announce its fiscal Q4 earnings results after the market closes on Thursday, Feb. 6.
Ahead of this event, analysts project the REIT to report an FFO of $1.68 per share, down 2.9% from $1.73 per share in the year-ago quarter. The company has a solid track record of consistently beating Wall Street's FFO estimates in the last four quarters. In Q3, CPT’s adjusted FFO of $1.71 outpaced the Wall Street estimates by a slight margin of 1.8%.
For fiscal 2024, analysts expect CPT to report an EPS of $6.74, down 1.2% from $6.82 in fiscal 2023. Nonetheless, in fiscal 2025, EPS is expected to marginally increase year-over-year to $6.79.
Shares of CPT have gained 16.6% over the past 52 weeks, underperforming the S&P 500 Index's ($SPX) 26.5% rise but outpacing the Real Estate Select Sector SPDR Fund’s (XLRE) 6.5% return over the same time frame.
Camden Property Trust released its Q3 earnings results on Oct. 31, and due to its mixed performance, shares of CPT plunged 1.8% the following day. The company’s FFO of $1.71 per share declined nearly 1.2% from the year-ago quarter and surpassed the Wall Street estimates of $1.68. However, its revenue marginally fell year-over-year to $387.2 million and slightly missed the consensus estimates.
An all-time high new apartment supply led to a decline in new lease rates. Moreover, the company paused four pre-development projects due to unfavorable economic conditions, including high construction costs and muted rent growth. These factors might have further lowered investor confidence.
Wall Street analysts are moderately optimistic about CPT’s stock, with a "Moderate Buy" rating overall. Among 26 analysts covering the stock, seven recommend "Strong Buy," one indicates a “Moderate Buy,” 16 suggest “Hold,” and two suggest “Strong Sell.”
The average price target for Camden Property Trust is $126.91, which indicates a modest 12.7% potential upside from the current levels.
