2024-03-08 08:50:48 ET
Summary
- Camden Property Trust shares have underperformed due to higher rates and a surge in supply impacting the apartment sector.
- Q4 property revenues rose by $12 million, but expenses and interest also increased.
- Rental growth has slowed, occupancy rates have declined, and expenses are rising, putting pressure on margins.
- While supply is weighing on rents, Camden's Sun Belt positioning is a long-term positive.
Shares of Camden Property Trust ( CPT ) have been a material underperformer over the past year as higher rates have weighed on real estate valuations. On top of this, a surge of supply has negatively impacted the apartment sector, pushing down rents. Last September , I rated CPT a buy, arguing shares had 10-15% upside. Since that recommendation, shares have returned over 4%, though this has materially lagged the broader market’s 18% gain. I continue to target a rise toward $105 and would remain long the stock....
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Camden Is Positioned To Weather A Weak 2024