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An In-Depth Look at Camden Property Trust’s Apartment Business

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Type of properties

Camden Property Trust’s (CPT) properties typically consist of mid-rise buildings or two- and three-story buildings in a landscaped setting. The company provides residents with a variety of amenities common to multifamily rental properties.

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Portfolio restructuring

Camden Property Trust has restructured its portfolio over the past four years through strategic capital recycling and internal growth from its operating portfolio. The company’s operating communities are down from 186 in 2010 to 168 as of 2014. During the same period, apartment homes also declined from 63,316 to 58,948.

To remain competitive, Camden and other major apartment REIT players such as Equity Residential (EQR), Essex Property Trust (ESS), and AvalonBay Communities (AVB) have restructured their portfolios. Camden makes up 1.6% of the holdings of the iShares Cohen & Steers REIT ETF (ICF).

Portfolio details

Camden Property Trust’s operating properties average 945 square feet of living area per apartment home. For fiscal 2014, 148 operating properties had more than 200 apartment homes, with the largest having 1,005 apartment homes. Camden’s operating properties had an average age of 12 years, while its value per apartment home increased from $118,000 in January 2011 to the current $193,400.

The company’s resident lease terms generally range from six to 15 months. The average annual rental revenue per apartment home for fiscal 2010 was $1,079 compared to $1,230 and $1,157 for fiscal 2014 and fiscal 2013, respectively.

For fiscal 2014, no single operating property accounted for greater than 1.7% of its total revenues. The operating properties of the company had a weighted average occupancy rate of approximately 96% and 95% for fiscal 2014 and fiscal 2013, respectively.

In the next part of this series, we’ll look at Camden Property Trust’s geographic coverage.

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