Camden Property Trust Reports Full-Year and Fourth Quarter 2025 Operating Results
Overview of Financial Performance
Camden Property Trust (NYSE: CPT) announced its operating and financial results for the three and twelve months ended December 31, 2025, highlighting stable core performance, disciplined capital allocation, and continued progress across its development and portfolio optimization strategy. Key performance measures included Net Income attributable to common shareholders (EPS), Funds from Operations (FFO), Core FFO, and Core Adjusted Funds from Operations (Core AFFO).
Earnings Results
For the fourth quarter of 2025, Camden reported diluted EPS of $1.44, a significant increase compared to $0.37 in the same period of 2024. Full-year 2025 EPS reached $3.54, up from $1.50 in 2024. These results included approximately $0.12 per share in impairment charges related to undeveloped land parcels during 2025.
Funds from Operations for the fourth quarter totaled $1.73 per diluted share, compared to $1.68 in the prior-year quarter. For the full year, FFO increased to $6.77, slightly higher than $6.70 in 2024. Core FFO followed a similar trend, reaching $1.76 in the fourth quarter and $6.88 for the year, demonstrating consistency in Camden’s underlying operating performance.
Core AFFO remained stable at $1.46 per share for the quarter and $5.90 for the year, reflecting steady cash flow generation.
Performance Versus Guidance
Fourth-quarter 2025 results exceeded guidance expectations across several metrics. EPS surpassed the midpoint of guidance by $1.09, while FFO and Core FFO each exceeded guidance by $0.03 per share. This outperformance reflects improved execution and favorable operating conditions late in the year.
Same Property Operating Results
Same property results showed modest year-over-year growth. Fourth-quarter revenues increased 0.5% compared to the prior year, while expenses rose 1.5%, resulting in flat net operating income (NOI). On a sequential basis, NOI increased 1.7% compared to the third quarter of 2025.
Occupancy remained stable at 95.2% in the fourth quarter, slightly below 95.3% in the prior-year period but consistent with recent quarters. For full-year 2025, same property revenues grew 0.8%, while expenses increased 1.7%, resulting in NOI growth of 0.3%.
Leasing Trends and Resident Metrics
Leasing activity reflected a competitive apartment market. Effective new lease rates declined 5.3% in the fourth quarter of 2025, while renewal rates increased 2.8%, leading to blended lease rate growth of (1.6%). These trends were slightly weaker than the same period in 2024.
Bad debt remained well controlled at 0.7%, consistent year over year. Annualized gross turnover declined to 40%, and net turnover improved to 30%, indicating improved resident retention.
Development Progress
Camden continued advancing its development pipeline during the quarter. Lease-up was completed at Camden Long Meadow Farms in Richmond, Texas, while leasing activity continued at Camden Village District in Raleigh, North Carolina, which was 60% leased as of January 31, 2026.
The company also maintained an active construction pipeline, with 1,162 apartment homes under development across Charlotte, North Carolina, and Nashville, Tennessee. Total estimated development costs for ongoing projects reached approximately $492 million, positioning Camden for future earnings growth as these communities stabilize.
Acquisition and Disposition Activity
During the quarter, Camden acquired a 322-home apartment community in Orlando, Florida, for approximately $85.2 million, expanding its presence in a high-growth market. The company also disposed of three operating communities in Houston, Texas, and Phoenix, Arizona, totaling 979 apartment homes, for approximately $201 million, recognizing a gain of $128 million.
Following quarter-end, Camden initiated the marketing process for 11 operating communities in California, signaling continued portfolio optimization.
Capital Allocation and Share Repurchases
Camden remained active in returning capital to shareholders. During the fourth quarter, the company repurchased over 2.0 million shares at an average price of $106.82, totaling $220.6 million. Year-to-date repurchases reached $270.6 million, with additional repurchases completed subsequent to quarter end.
In February 2026, the Board authorized a new $600 million share repurchase program, providing flexibility for continued capital deployment.
Liquidity and Balance Sheet Strength
As of December 31, 2025, Camden reported total liquidity of approximately $635 million, including cash and available credit capacity. Remaining funding commitments for its development pipeline totaled $213.8 million, which the company expects to fund through existing liquidity and operating cash flows.
2026 Earnings and Growth Outlook
Camden provided initial guidance for 2026, reflecting cautious optimism amid a moderating apartment market. Full-year Core FFO is expected to range between $6.60 and $6.90 per share, with a midpoint of $6.75. Same property NOI is projected to range from (2.5%) to 1.5%, driven by modest revenue growth and higher operating expenses.
Dividend Declaration
The Board of Trust Managers declared a first-quarter 2026 dividend of $1.06 per share, payable on April 17, 2026. The dividend reflects Camden’s confidence in its cash flow stability and long-term outlook.
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