Houston, Texas-based Camden Property Trust (CPT) engages in the ownership, management, development, repositioning, redevelopment, acquisition, and construction of multifamily apartment communities. With a market cap of $11.6 billion, Camden operates as one of the major owners of apartments in the U.S. It is expected to announce its Q2 earnings after the market closes on Thursday, August 1.
Ahead of the event, analysts expect Camden to report a profit of $1.67 per share, down 1.8% from $1.70 per share reported in the year-ago quarter. The company has surpassed or met Wall Street’s FFO projections in each of the past four quarters. Its FFO for the last reported quarter grew marginally year over year to $1.67 per share, marginally exceeding the consensus estimates.
In fiscal 2024, analysts expect Camden to report an FFO of $6.73 per share, down 1.3% from $6.82 in fiscal 2023. However, in fiscal 2025, its FFO is projected to grow 2.4% annually to $6.89 per share.
Shares of Camden have gained 12% on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 18.8% gains but outpacing the S&P 500 Real Estate Sector SPDR’s (XLRE) 1.2% returns over the same time frame.
Camden’s strategic divestments and investments in high-growth markets position it to sustain a competitive edge and drive long-term value creation. CPT stock rose 4.5% in the subsequent trading session after the release of its Q1 results on May 2. The company reported a 1.3% increase in property revenues, while non-property income grew by 35.3%. Plus, its net income nearly doubled from $43.6 million to $86.7 million, driven by the $43.8 million profit from the sale of an operating property in Atlanta. This sale demonstrates Camden’s prowess in capitalizing on favorable market conditions.
Moreover, Camden repurchased shares worth $45.7 million in Q1 and paid its shareholders a quarterly dividend of $1.03 per share on July 17, continuing its three-decade dividend payment streak. This demonstrates Camden’s commitment to shareholders.
Overall, CPT stock has a “Moderate Buy” rating. Out of the 23 analysts covering the stock, seven recommend a “Strong Buy,” two advocate a “Moderate Buy,” 12 analysts are playing it safe with a “Hold,” one suggests a “Moderate Sell,” and the remaining one analyst advises a “Strong Sell” rating.
Although Camden is trading above its average target price of $108.78, the Street-high target of $122 suggests a potential upside of 9.7% from current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
