On Thursday, Camden Property Trust (NYSE: CPT) beat Wall Street estimates for second-quarter funds from operations (FFO), helped by strong demand for rental spaces in states like North Carolina and Arizona.
Rental supply across the United States, most prominently in the country’s Sunbelt region, remains elevated.
However, the real estate investment trust (REIT) said that less than 20% of its portfolio is in the markets where supply is outstripping demand.
Meanwhile, the outlook for long-term rental demand remains healthy due to trends such as high costs of home ownership, stable employment levels, and delayed marriages.
The REIT, which manages more than 60,000 apartment units across the U.S., saw signed new-lease rates, offered to tenants who newly moved in, decline by 1.8%.
The renewal rates, given to tenants extending their stay, increased by 3.7%, leading to positive growth in rental revenue.
Camden (NYSE: CPT) reported FFO per share, a key measure of performance of a REIT, of $1.71, in the quarter that ended June 30. On average, analysts had estimated an FFO per share of $1.67, according to LSEG data.
The same property revenues grew by 1.4%.
Shares of the company were flat in trading after the bell.
(Source: ReutersReuters)
