Camden Property Trust hums along by investing in, developing, and operating luxury and middle-market apartment complexes in about a dozen states. The real estate investment trust (REIT), which sports a hummingbird logo, has about 200 urban and suburban properties with some 70,000 apartment units. Its portfolio is made up of both wholly owned and joint-venture holdings; most communities carry the Camden name. Around a quarter of the REIT's properties are in Texas, but the company also has a presence in other top markets such as Atlanta, Denver, Florida, Las Vegas, North Carolina, Phoenix, Southern California, and Washington, DC.
The multifamily property market has proven to be rather resilient during the economic downturn. Much of that is due to a limited supply of new properties being developed or built and a continuing decline in homeownership rates. The company counts people ages 18 to 35 as its core customers as they have the highest propensity to rent, and it sees this demographic growing. Rental income from its existing properties increased more than 5% in 2011 after three consecutive years of decline, and Camden expects the upward trend to continue.
Camden actively manages its property portfolio by regularly developing and acquiring properties and by selling complexes and undeveloped land when it deems such actions appropriate; It frequently renovates properties to increase their rental value when competing with newer complexes. The company also provides construction management and general contracting services for third-party investors developing commercial, retail, and residential properties.
Concentrating on high-growth areas, Camden seeks to acquire apartment communities that are less than 15 years old, comprise more than 200 units, and have central heating and cooling, among other built-in amenities. It acquired about 20 new properties during 2011, including a portfolio of eight communities in Texas with nearly 3,000 individual units. It also divested several properties owned through joint ventures. – less