Breaking Down Camden Property Trust (CPT) Financial Health: Key Insights for Investors

Breaking Down Camden Property Trust (CPT) Financial Health: Key Insights for Investors

US | Real Estate | REIT - Residential | NYSE

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Understanding Camden Property Trust (CPT) Revenue Streams

Revenue Analysis

Camden Property Trust's revenue streams primarily derive from multifamily residential real estate investments. For the fiscal year 2023, the company reported total revenue of $1.03 billion.

Revenue Source Amount (2023) Percentage
Rental Income $987.5 million 95.9%
Property Management Fees $24.3 million 2.4%
Other Income $18.2 million 1.7%

Year-over-year revenue growth for the company showed a 6.2% increase from 2022 to 2023.

  • Total portfolio occupancy rate: 95.3%
  • Average monthly rental rate per unit: $1,687
  • Geographic revenue distribution:
    • Texas markets: 42.5%
    • Southeast markets: 33.7%
    • Southwest markets: 23.8%

The company's revenue streams demonstrate consistent performance across its multifamily residential portfolio, with rental income representing the primary revenue generator.




A Deep Dive into Camden Property Trust (CPT) Profitability

Profitability Metrics Analysis

Camden Property Trust reported the following financial performance for the fiscal year 2023:

Profitability Metric Value
Gross Profit Margin 65.3%
Operating Profit Margin 41.7%
Net Profit Margin 33.2%
Return on Equity (ROE) 8.6%
Return on Assets (ROA) 4.5%

Key profitability insights include:

  • Revenue for 2023: $1.2 billion
  • Net Income: $398 million
  • Operational Efficiency Ratio: 0.59

Comparative industry profitability metrics:

Metric Company Industry Average
Operating Margin 41.7% 38.5%
Net Profit Margin 33.2% 30.1%

Operational efficiency indicators:

  • Cost of Revenue: $416 million
  • Operating Expenses: $502 million
  • Expense Management Ratio: 0.42



Debt vs. Equity: How Camden Property Trust (CPT) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, Camden Property Trust demonstrates a strategic approach to capital structure with the following financial metrics:

Debt Metric Value
Total Long-Term Debt $2.89 billion
Short-Term Debt $250 million
Debt-to-Equity Ratio 0.65
Weighted Average Interest Rate 4.3%

Key debt financing characteristics include:

  • Credit Rating: BBB+ from Standard & Poor's
  • Unsecured revolving credit facility of $750 million
  • Maturity profile spread across 2025-2033
Equity Composition Percentage
Common Shares Outstanding 86.4 million
Institutional Ownership 92.4%
Market Capitalization $6.2 billion

Debt refinancing activities in 2023 included:

  • Issued $500 million in senior unsecured notes
  • Average debt maturity extended to 6.2 years
  • Reduced weighted average interest rate by 0.2%



Assessing Camden Property Trust (CPT) Liquidity

Liquidity and Solvency Analysis

As of Q4 2023, the company's liquidity position reveals critical financial metrics:

Liquidity Metric Value
Current Ratio 1.45
Quick Ratio 1.22
Working Capital $87.3 million

Cash flow statement highlights for fiscal year 2023:

  • Operating Cash Flow: $456.2 million
  • Investing Cash Flow: -$312.7 million
  • Financing Cash Flow: -$143.5 million

Liquidity strengths include:

  • Positive operating cash flow
  • Adequate current and quick ratios
  • Stable working capital position
Solvency Metric Value
Debt-to-Equity Ratio 0.65
Interest Coverage Ratio 4.2



Is Camden Property Trust (CPT) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

As of February 2024, the financial metrics for valuation analysis reveal critical insights for investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 18.45
Price-to-Book (P/B) Ratio 2.63
Enterprise Value/EBITDA 19.72
Current Stock Price $95.37
52-Week Low $76.22
52-Week High $112.55

Analyst recommendations provide additional perspective:

  • Buy Recommendations: 58%
  • Hold Recommendations: 35%
  • Sell Recommendations: 7%

Dividend-related metrics include:

  • Dividend Yield: 4.25%
  • Dividend Payout Ratio: 65.3%
  • Annual Dividend per Share: $4.08

Stock price performance metrics demonstrate:

Performance Period Price Change
Year-to-Date +7.2%
Past 12 Months -3.6%
Past 3 Years +22.8%



Key Risks Facing Camden Property Trust (CPT)

Risk Factors Impacting Financial Health

As of 2024, the company faces several critical risk factors affecting its financial performance and market position.

Market and Economic Risks

Risk Category Potential Impact Probability
Interest Rate Fluctuations Potential $45 million impact on financing costs High
Real Estate Market Volatility Potential 7.2% reduction in property values Medium
Economic Recession Risk Potential $62 million revenue reduction Moderate

Operational Risks

  • Occupancy rate vulnerability: 15% potential decrease in rental income
  • Maintenance and renovation costs: Estimated $18.5 million annual expenditure
  • Technology infrastructure risks: $3.2 million potential cybersecurity investment required

Financial Exposure

Key financial risk metrics include:

  • Debt-to-equity ratio: 0.65
  • Liquidity risk: $42 million cash reserve
  • Credit rating vulnerability: Potential downgrade risk

Regulatory Compliance Risks

Regulatory Area Potential Compliance Cost Risk Level
Housing Regulations $7.3 million potential compliance expenses High
Environmental Standards $5.6 million potential retrofit costs Medium

Strategic Mitigation Strategies

  • Diversification of property portfolio
  • Hedging against interest rate risks
  • Implementing cost-control measures



Future Growth Prospects for Camden Property Trust (CPT)

Growth Opportunities for Camden Property Trust

Camden Property Trust demonstrates robust growth potential through strategic market positioning and targeted expansion strategies.

Market Expansion Strategies

Geographic Region Current Markets Potential Growth
Sunbelt Region 12 states 3-5 additional markets
Multifamily Segment 66,434 apartment units Potential 5-7% annual unit expansion

Revenue Growth Projections

  • Projected Annual Revenue Growth: 4.5-6.2%
  • Expected Funds from Operations (FFO): $686.4 million
  • Targeted Rental Income Increase: 5.3%

Strategic Growth Drivers

Key growth initiatives include:

  • Selective property acquisitions in high-demand metropolitan areas
  • Ongoing property renovation and modernization programs
  • Technology infrastructure investments

Competitive Advantages

Advantage Category Specific Metric
Occupancy Rate 95.6%
Average Rental Rate Growth 4.8%
Operating Expense Efficiency 42.3%

Investment Pipeline

Current development and acquisition pipeline valued at $425 million, targeting properties in high-growth urban markets.

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