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Camden Property Trust’s 4Q15 Earnings Growth Drivers

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Jan. 19 2016, Updated 5:06 p.m. ET

Occupancy

Camden Property Trust’s portfolio occupancy rate inched up marginally by 0.1% year-over-year, reaching 96% in 3Q15. The company’s occupancy has remained above 95% for the last 14 quarters. In 4Q15, its occupancy rate may likely be around the same level as 3Q15. Atlanta and Denver are expected to report strong occupancy levels.

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Average rental rate

Camden Property Trust’s (CPT) weighted average monthly rental rates were up by 4.3% to $1,299 per month in 3Q15 over the same previous fiscal period. Average rental rate is defined as total rental revenues divided by the weighted average occupied apartment units for the period.

Average rental rates are expected to strengthen further in 4Q15, buoyed by an improving economy and robust demand for properties in the core markets. Markets such as Atlanta, Denver, and Austin are expected to lead the way for higher revenue and NOI (net operating income) growth. On the other hand, Houston and Washington, DC, are expected to remain laggards in terms of growth momentum.

Earnings estimates

In the previous part of this series, we looked at Camden Property Trust’s revenues versus analysts’ estimates. Now let’s look at its EPS (earnings per share) versus analysts’ estimates.

Wall Street (SPY) analysts expect Camden Property Trust to post a net income of $43.4 million for the fourth quarter of 2015. This translates to adjusted EPS of $0.52 for the quarter and $2.62 for 2015.

The company’s diluted EPS for 3Q15 declined by 4.7% to $0.41, while the basic EPS was $0.41. During the same period last year, the company reported EPS of $0.43. Its dividend per share is expected to be $0.70 for the fourth quarter.

Camden Property Trust constitutes 0.7% of the SPDR Dow Jones Global Real Estate ETF (RWO). Equity Residential (EQR), Essex Property Trust (ESS), and AvalonBay Communities (AVB) have weights of 3%, 1.6%, and 2.5%, respectively, in RWO.

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