Valued at a market cap of $12.7 billion, Camden Property Trust (CPT) is a Real Estate Investment Trust (REIT) focused on owning, managing, and developing multifamily apartment communities across the United States. With a portfolio of 172 properties and over 58,000 apartment homes, it is a leading player in the residential real estate sector. The Houston, Texas-based company is expected to announce its Q3 earnings after the market closes on Thursday, Oct. 31.

Ahead of the event, analysts expect the REIT to report a FFO of $1.68 per share, down 2.9% from $1.73 per share reported in the year-ago quarter. However, the company has consistently surpassed Wall Street’s FFO projections over the past four quarters. In Q2 2024, CPT exceeded the consensus estimates by 2.4%.

In fiscal 2024, analysts expect Camden Property Trust to report an FFO of $6.77 per share, marginally down from $6.82 per share in fiscal 2023. Nevertheless, its FFO is expected to grow 2.7% year-over-year in fiscal 2025, reaching $6.95 per share.

CPT stock has increased nearly 21% on a YTD basis, lagging behind the S&P 500 Index’s ($SPX) 22.8% gains. But the stock has outpaced the Real Estate Select Sector SPDR Fund’s (XLRE) 9.2% returns over the same time frame.

Shares of Camden Property Trust rose 2.7% following its Q2 earnings release on Aug. 1 due to stronger-than-expected funds from operations (FFO) of $1.71 per share and revenue of $387.2 million. The company's positive rental revenue growth, driven by a 3.7% increase in lease renewal rates, further boosted investor confidence. Additionally, Camden's exposure to high-demand regions like North Carolina and Arizona, where rental demand remains robust, contributed to the favorable market reaction.

The consensus opinion on Camden Property Trust stock is cautiously optimistic, with an overall “Moderate Buy” rating. Among 26 analysts covering the stock, seven recommend a “Strong Buy” rating, one gives a “Moderate Buy” rating, 17 suggest a “Hold” rating, and one recommends a “Strong Sell” rating. The average target price for CPT is $125.22, indicating a potential upside of just 4.3% from current price levels.  

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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.