Truist has revised its price target for Camden Property Trust (CPT, Financial), increasing it from $129 to $131 while maintaining a Buy rating on the stock. The analyst, Michael Lewis, highlighted Camden Property Trust as one of the preferred apartment REITs for the fiscal year 2025. Despite forecasts of a slowdown in U.S. job growth, Truist anticipates that the predicted 0.1% growth in same-store net operating income for this year will be the lowest point for Camden amidst a period of record-high new supply in its markets.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 21 analysts, the average target price for Camden Property Trust (CPT, Financial) is $130.70 with a high estimate of $144.00 and a low estimate of $120.00. The average target implies an upside of 10.54% from the current price of $118.24. More detailed estimate data can be found on the Camden Property Trust (CPT) Forecast page.
Based on the consensus recommendation from 25 brokerage firms, Camden Property Trust's (CPT, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Camden Property Trust (CPT, Financial) in one year is $120.76, suggesting a upside of 2.13% from the current price of $118.24. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Camden Property Trust (CPT) Summary page.
CPT Key Business Developments
Release Date: May 02, 2025
- Core Funds from Operations (FFO): $189.8 million or $1.72 per share, $0.04 ahead of prior guidance.
- Same-Property Revenue Growth: Ranged from 1.3% to 4.5% in top-performing markets.
- Rental Rates: Effective new leases down 3.1%, renewals up 3.3%, blended rate of negative 0.1%.
- Occupancy: Averaged 95.4% in Q1 2025, slight improvement from 95.3% in Q4 2024.
- Net Turnover Rate: 31%, one of the lowest in company history.
- Customer Sentiment Score: 91.1, highest since 2014.
- Acquisitions: Two acquisitions totaling $199 million.
- Development Starts: $184 million in new development, with plans for additional projects.
- Commercial Paper Program: $600 million program, borrowing at rates 50 basis points below line of credit.
- Full Year Core FFO Guidance: Increased by $0.03 per share to $6.78.
- Second Quarter Core FFO Guidance: Expected range of $1.67 to $1.71 per share.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Camden Property Trust (CPT, Financial) exceeded its operating expectations for the first quarter, beating guidance by $0.04 per share.
- New supply in CPT's markets has peaked, with new starts at a 13-year low, indicating a favorable supply-demand balance.
- CPT's Sunbelt markets continue to dominate in job growth, population growth, and young adult household growth, providing a strong demand base.
- CPT's customer sentiment score reached a record high of 91.1, reflecting high resident satisfaction.
- CPT was recognized for the 18th consecutive year as one of the 100 Best Companies to Work For by Fortune magazine, highlighting its strong corporate culture.
Negative Points
- Rental rates for the first quarter showed a blended rate of negative 0.1%, indicating pressure on new lease pricing.
- CPT's markets like Nashville and Austin are expected to remain challenged throughout 2025 due to high levels of new deliveries.
- The company is maintaining its same-store guidance due to macroeconomic uncertainty, indicating cautiousness in its outlook.
- CPT's acquisitions are expected to have a higher yield than its dispositions, potentially impacting FFO in the latter part of 2025.
- The lease-up of CPT's single-family rental communities has been slower than expected, indicating challenges in this segment.
