HOUSTON – (Realty News Report) – Houston-based apartment developer Camden Property Trust posted lower earnings and profits during the fourth quarter amid falling rental rates from the lingering pandemic and economic crisis. Camden, which owns interests in and operates 167 multifamily and mixed-use properties across more than a dozen U.S. markets, posted fourth-quarter revenue of $261.6 million, down from $263.5 during the same period in 2019. Net income was $29.2 million, or 29 cents per share, compared with $95 million, or 95 cents per share, a year earlier.
Houston Multifamily Glut
Houston — Camden’s largest market with more than 5,900 units — had the company’s lowest average apartment occupancy at 92.3 percent. The flagging energy sector, combined with COVID-19, has taken an outsize toll on this region’s economy. Moreover, the area has a glut of apartments available for rent, causing heated competition among Houston landlords.
“We’ve got way too much supply,” Executive Vice Chairman of the Board Keith Oden said in a Friday morning earnings call. “It’s hand-to-hand combat on downtown or close-in assets.”
Hand-To-Hand Combat
Some 20,000 apartments came online in Houston in 2020 and developers are delivering another 20,000 this year.
“The bottom line is 40,000 apartments being delivered in Houston would require 200,000 jobs to be able to take up that slack. It obviously hasn’t happened,” Oden said.
Still, Camden officials expect operations to improve in the second half of the year as more businesses re-open. Camden expects to sell some of older properties in Houston and Washington DC in het second half of the year.
Overall occupancy was 95.5 percent in the fourth quarter among Camden’s portfolio, down from 95.6 percent in the third quarter and 96.2 percent during the final quarter of 2019.
The company cited negative financial impacts, including a $3.5 million adjustment to retail rent receivables during the fourth quarter and a $14.8 million hit related to COVID-19, including resident and employee relief funds and bonuses paid to on-site employees. Funds from operations were $122.4 million, down from $125.6 million a year earlier.
Camden stock closed at $101.80 per share Friday, down $1.82.
Feb. 5, 2021 Realty News Report Copyright 2021
File: Houston Multifamily Glut Pinches
Caption: Camden Vanderbilt multifamily property on Buffalo Speedway was built in the 1990s. Photo credit: Ralph Bivins, Realty News Report Copyright 2021
File: (2) REIT. Houston Multifamily Glut Pinches Camden Property Trust. CPT. 4Q 2020 Earnings.