Camden Property Trust BofA NY Global Real Estate Conference 2026

Thanks, Jana, and good afternoon, everybody. Thanks so much for joining us today. We've only got about 30 minutes, so I'll keep my opening short and leave as much time as I can for your questions. If you want more detail, our updated investor presentation is up on our website, and it covers a lot of what we're going to walk through today. For anybody who doesn't know Camden well, here's the quick version. We're a multifamily REIT with nearly 57,000 apartment homes in 13 major markets around the country. We're an S&P 500 company. Our total market cap is $15 billion, and we've been public for 33 years now. About 80% of the portfolio sits in the high-growth Sun Belt markets, and the rest is in the Washington, D.C. area, or the DMV, and in Denver.

Within those markets, 60% of our assets are in suburban submarkets, and roughly 60% would be considered Class B rather than Class A on price point. We've got one of the youngest portfolios in the business with an average age of 16 years. Our markets lead the country in job growth, population growth, in-migration, and just overall demand for apartments. That has driven record absorption across our portfolio. New supply hit a 50-year peak in 2024, and deliveries have been coming down steadily ever since. In our markets, completions as a percentage of inventory in 2027 and 2028 are projected to run below the 20-year historical average of 2.3%. Buying a home is still out of reach for a lot of people, with mortgage rates around 7% and a big premium to own versus rent.

Put all that together, and it sets us up a really good operating environment with better revenue and NOI growth in 2027 and beyond. Before anybody asks, we are not going to give any 2027 guidance today. So sorry, folks. Our markets are doing what we expected, and third quarter trends so far are right in line with our most recent guidance. Based upon what we actually saw in July and August, plus where we think September lands, we expect to average 95.7%-95.8% for occupancy in the third quarter, with blended lease rate growth between 1%-2%. That is consistent with what we talked about on our second quarter call back in July.

Our peak leasing season usually runs from March to the end of August, and this year felt a lot more typical or more normal than last year, when things slowed down by mid-year and the July 4th holiday. Given the pickup we saw in July and August, we expect the third quarter 2026 occupancy and lease rate growth to come in above both last quarter, or the second quarter of 2026, and last year, or the third quarter of 2025. That sets us up well heading into the fourth quarter. Retention is still high, turnover is still low, and move-outs to buy a home has averaged 10% since 2023, which is a record low. We will keep balancing occupancy against asking rents to maximize revenue now that we are in the slower stretch after Labor Day, so expect a slight moderation in sequential occupancy and rent growth in the fourth quarter.

As most of you know, we closed the sale of our 19-year-old California portfolio in late July for $1.625 billion. We put approximately $700 million of the proceeds back into share buybacks, and the rest is going towards acquisitions in our high-growth Sun Belt markets. So far, we have completed $750 million of acquisitions, adding newly built communities with an average age of five years across several of our markets, and we are working on a few more deals we would like to close before year-end. We also added three new development sites to the pipeline, one in Raleigh and two in Tampa, and we expect to start the Raleigh project later this year.

Camden has one of the best balance sheets and lowest leverage ratios in the multifamily space, and we are one of only a handful of U.S. REITs with an A-minus or better credit rating from all three rating agencies. Liquidity is in great shape. We have got $1.2 billion available under our unsecured line of credit and commercial paper program, plus roughly $600 million in cash equivalents, and 1031 exchange-related accounts. We do not have much coming due in the near term. We have got $553 million of debt at an average interest rate of about 5% maturing between now and year-end, and we plan to refinance it accretively in the near term using our unsecured credit facilities.

To wrap it up, Camden has the right products in the right markets, high-growth Sun Belt markets that are set up to outperform as new supply keeps declining and demand for rental housing stays solid. Our balance sheet is strong, leverage is low, liquidity is ample, and we can refinance what's coming due accretively. We've got a proven track record of recycling capital to improve the portfolio and its growth profile and creating value for shareholders along the way. Over the past 30 years, we've delivered solid long-term total returns, averaging 10.7% a year, which beats several NAREIT and broader market indices. With that, let's open up the question from the BofA team and our audience today.

Absolutely. I'll hit the first part, which is new leadership. The great news is that what's been working for Camden for the past 33 years isn't changing. I've been at Camden for 27 years. Ben's been at Camden for 26 years. Kim, we won't say how long she's been at Camden. The good news is that everything that has been working for quite some time and has delivered outsized results is not changing. The second thing is, we'll talk about California and the California transaction, and I think that's really the best capital allocation story that we have seen in REIT world this year. If you can trade out of 19-year-old assets in California, and California, by the way, is a market that we do not believe is going to grow as fast as the Sun Belt.

If you look back over history, California has not grown as fast as the Sun Belt. We're able to trade 19-year-old assets in California for five-year-old assets in our high core, high growth Sun Belt markets, and we were able to do that on a net neutral basis. That is fantastic. By the way, it's net neutral in year one and should become accretive in year two and go on from that point. I think that is a really strong example of how to allocate capital in an efficient manner. By the way, the way we were able to make that work is we bought back $700 million of Camden shares at a significant discount to NAV. We are absolutely prepared to do transactions like that, and we think this is a great story.

You asked about the M&A transactions that have happened in REIT space. Yes, there certainly has been some M&A transactions, which we will let the investors decide whether or not they think those make sense. Here is what I will tell you on markets. The Sun Belt has outperformed for 30 straight years. If you go look at total shareholder return over 20 years, the top two companies at the top of that list are the two Sun Belt companies, and that is because what drives our business is really simple. It is job growth and it is employment growth. If you look to see where, excuse me, job growth and population growth, and if you look to see where the job growth and population growth has been and where it is consistently been, it has been in the Sun Belt.