CPT 10-K & 10-Q changes, risk factors and insider trading
Camden Property Trust · NYSE · Real Estate Investment Trusts · CIK 906345 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
Largest changes
“We use technology in substantially all aspects of our business operations, including internet and cloud-based systems and applications. We also use mobile devices, social networking, outside vendors, and various platforms to connect with our employees, suppliers, and residents. …”see in full comparison
see in full comparisonWe use technology in substantially all aspects of our business operations, including internet and cloud-based systems and applications. We also use mobile devices, social networking, outside vendors, and other online activities to connect with our employees, suppliers, and residents. Such uses and the on-going advancement in technology such as generative artificial intelligence, machine learning, and remote connectivity solutions give rise to potential cybersecurity risks with increasing sophistication, including but not limited to, security breaches, espionage, system disruption, theft, and inadvertent release of confidential information.Our business involves the storage and transmission of numerous classes of sensitive and confidential information and intellectual property, including residents' and suppliers' personal information, private information about employees, and financial and strategic information about us.Further, asAs we pursue our strategy to grow through acquisitions and developments andto pursuenew initiatives to improve our operations, we are also expanding our information technologies, resulting in a larger technological presence and corresponding exposure to cybersecurity risk. If we fail to assess and identify cybersecurity risks associated with our operations, we may become increasingly vulnerable to such risks and may be liable fortheconsequential litigation and remediation costs. Additionally, the measures we have implemented to prevent security breaches and cyber incidents may not be effective and there can be no complete assurance of prevention or anticipation of such incidents. The theft, destruction, loss, misappropriation, or release of sensitive data, confidential information or intellectual property, or interference with our information technology systems or the technology systems of third parties on which we rely could result in business disruption, negative publicity, brand damage, violation of privacy laws, loss of residents, potential liability, and competitive disadvantage, any of which could result in a material adverse effect on our financial condition or results of operations.
“•increased costs, including those driven by tariffs, regulatory changes, or other supplychain cost escalations such as higher prices for materials, equipment, contracted services, compliance requirements, or constraints in global or domestic supply chains; and”see in full comparison
“Information security risks have escalated as a result of these emerging technologies and the heightened sophistication and activity levels of cyber-attack perpetrators. Cyber-attacks can include third parties gaining unauthorized access to our data, including sensitive information about our residents, as well as our vendors' data or information technology systems. These attacks may occur through stolen credentials, computer malware, phishing attacks, ransomware, and other deliberate attempts to compromise information security.”see in full comparison
“As of the date of this filing, we have an unsecured term loan with varying interest rates dependent upon various market indexes. In addition, we have an unsecured revolving credit facility and utilize a commercial paper program bearing interest at variable rates on all amounts drawn and a senior unsecured note which has been converted into a floating rate instrument through an interest rate swap arrangement. We may incur other additional variable rate debt in the future. …”see in full comparison
“As of the date of this filing, we have an unsecured term loan with varying interest rates dependent upon various market indexes. In addition, we have an unsecured revolving credit facility bearing interest at variable rates on all amounts drawn and a senior unsecured note which has been converted into a floating rate instrument through an interest rate swap arrangement. We may incur other additional variable rate debt in the future. …”see in full comparison
Full comparison: every changed paragraph (15)
Volatility in capital and credit markets, cost increases, or other unfavorable changes in economic conditions, either nationally or regionally in one or more of the markets in which we operate, could adversely impact us.
The capital and credit markets are subject to volatility and disruption. If we need to incur debt from a source other than our revolving credit facility,facility or our commercial paper program, we cannot be certain the additional financing will be available to the extent required and on acceptable terms. If debt financing on acceptable terms is not available, we may be unable to fully execute our growth strategy, otherwise take advantage of business opportunities, or respond to competitive pressures, any of which could have a material adverse effect on our results of operations, financial condition (including liquidity), and our ability to make distributions to shareholders.
•increased costs, including those driven by tariffs, regulatory changes, or other supplychain cost escalations such as higher prices for materials, equipment, contracted services, compliance requirements, or constraints in global or domestic supply chains; and
•increased operating costs, if these costs cannot be passed through to our residents; and
We hold land for future development and may in the future acquire additional land holdings. The risks inherent in purchasing, owning, and developing land increase as demand for apartments, or rental rates, decrease. Real estate markets are highly uncertain and, as a result, the value of undeveloped land may fluctuate significantly. In addition, carrying costs can be significant and can result in losses or reduced profitability. As a result, we hold certain land and may in the future acquire additional land in our development pipeline at a cost we may not be able to fully recover or at a cost which may preclude us from developing a profitable multifamily community. Under current market conditions, in 20242025 we recorded impairment charges on threetwo parcels of land. If there are subsequent changes in the fair market value of our land holdings and the resulting value is less than the carrying basis of our land holdings reflected in our financial statements, we may be required to take future impairment charges which would reduce our net income.
•disruptions in the supply of materials or labor, increased materials and labor costs, problems with contractors or subcontractors, or other costs including those costsarising duefrom totariffs, duties, import-related taxes, or errors and omissions which occur in the design or construction process;
We use technology in substantially all aspects of our business operations, including internet and cloud-based systems and applications. We also use mobile devices, social networking, outside vendors, and various platforms to connect with our employees, suppliers, and residents. As we have incorporated and may continue to incorporate the use of generative artificial intelligence and other advancing technologies, any breach, interruption, or security failure of those technologies, or any non-compliance with applicable laws, could have a negative impact on our business operations, results of operations, financial condition, or reputation.
Information security risks have escalated as a result of these emerging technologies and the heightened sophistication and activity levels of cyber-attack perpetrators. Cyber-attacks can include third parties gaining unauthorized access to our data, including sensitive information about our residents, as well as our vendors' data or information technology systems. These attacks may occur through stolen credentials, computer malware, phishing attacks, ransomware, and other deliberate attempts to compromise information security.
We use technology in substantially all aspects of our business operations, including internet and cloud-based systems and applications. We also use mobile devices, social networking, outside vendors, and other online activities to connect with our employees, suppliers, and residents. Such uses and the on-going advancement in technology such as generative artificial intelligence, machine learning, and remote connectivity solutions give rise to potential cybersecurity risks with increasing sophistication, including but not limited to, security breaches, espionage, system disruption, theft, and inadvertent release of confidential information. Our business involves the storage and transmission of numerous classes of sensitive and confidential information and intellectual property, including residents' and suppliers' personal information, private information about employees, and financial and strategic information about us. Further, asAs we pursue our strategy to grow through acquisitions and developments and to pursue new initiatives to improve our operations, we are also expanding our information technologies, resulting in a larger technological presence and corresponding exposure to cybersecurity risk. If we fail to assess and identify cybersecurity risks associated with our operations, we may become increasingly vulnerable to such risks and may be liable for the consequential litigation and remediation costs. Additionally, the measures we have implemented to prevent security breaches and cyber incidents may not be effective and there can be no complete assurance of prevention or anticipation of such incidents. The theft, destruction, loss, misappropriation, or release of sensitive data, confidential information or intellectual property, or interference with our information technology systems or the technology systems of third parties on which we rely could result in business disruption, negative publicity, brand damage, violation of privacy laws, loss of residents, potential liability, and competitive disadvantage, any of which could result in a material adverse effect on our financial condition or results of operations.
OurWe rely on, or may rely in the future on, certain third-party service and software providers areto primarilyhost responsiblesystems, forprovide thekey security of their own information technology environmentssoftware, and in certain instances we rely significantly on third-party service providers to supply and store our sensitive data in a secure manner. All of theseThese third parties face potential risks relating to cybersecurity similar to ours which could disrupt their businesses and therefore adversely impact us. While we provide guidance and specific requirementsrequirements, in some cases, we do not directly control any of these parties'their information technology security operations,operations or the amount of investment they place in guarding against cybersecurity threats. Accordingly, we are subject to any flawflaws or breaches toin their information technology systems, or those which they operate for us, which could have a material adverse effect on our financial condition or results of operations.
The notes related to our properties subject to secured debt, our unsecured term loans, andloan, unsecured revolving credit facility, and commercial paper program, and the indenture under which our unsecured debt was issued contain customary restrictions, requirements, and other limitations, as well as certain financial and operating covenants including maintenance of certain financial ratios. Maintaining compliance with these provisions could limit our financial flexibility. A default in these provisions, if uncured, could require us to repay the indebtedness before the scheduled maturity date which could adversely affect our liquidity and increase our financing costs.
•increases in operatingexpenses, expensesincluding from tariffs; and
As of the date of this filing, we have an unsecured term loan with varying interest rates dependent upon various market indexes. In addition, we have an unsecured revolving credit facility bearing interest at variable rates on all amounts drawn and a senior unsecured note which has been converted into a floating rate instrument through an interest rate swap arrangement. We may incur other additional variable rate debt in the future. Increases in interest rates would increase our interest expense, unless we make arrangements which hedge the risk of rising interest rates, and would increase the costs of refinancing existing debt and of issuing new debt. Accordingly, higher interest rates could adversely affect cash flow, net income, and cash available for payment of our debt obligations and distributions to shareholders.
Fitch, Moody's, and Standard & Poor's, the major debt rating agencies, routinely evaluate our debt and have given us investment grade ratings of A- with stable outlook, A3 with stable outlook, and A- with stable outlook, respectively, on our senior unsecured debt as of December 31, 2024.2025. These ratings are based on a number of factors, which include their assessment of our financial strength, liquidity, capital structure, asset quality, and sustainability of cash flow and earnings. Due to changes in market conditions, we may not be able to maintain our current credit ratings, which could adversely affect our cost of funds and related margins, liquidity, and access to capital markets.
As of the date of this filing, we have an unsecured term loan with varying interest rates dependent upon various market indexes. In addition, we have an unsecured revolving credit facility and utilize a commercial paper program bearing interest at variable rates on all amounts drawn and a senior unsecured note which has been converted into a floating rate instrument through an interest rate swap arrangement. We may incur other additional variable rate debt in the future. Increases in interest rates would increase our interest expense, unless we make arrangements which hedge against rising interest rates, and would also increase the costs associated with refinancing existing debt and issuing new debt. Accordingly, higher interest rates could adversely affect cash flow, net income, and cash available for payment of our debt obligations and distributions to shareholders.
Management's Discussion & Analysis (MD&A)
Removed heading “(1) For the year ended December 31, 2023, activity relates to proceeds from an earn-out from a previously sold technology investment.”
Largest changes
Management considers property net operating income ("NOI") to be an appropriate supplemental measure of operating performance to net income because it reflects the operating performance of our communities without an allocation of corporate level property management overhead or general and administrative costs. We define NOIsee in full comparisonis definedas total propertyincomerevenue less total property operating expenses. NOI is further detailed in the Property-Level NOI table as seenbelow.below,NOIand is not defined by accounting principles generally accepted in the United States of America ("GAAP") and should not be considered an alternative to net income as an indication of our operatingperformance, should not be considered an alternative to net cash from operating activities as a measure of liquidity, and should not be considered an indication of cash available to fund cash needs.performance. Additionally, NOI as disclosed by other REITs may not be comparable to our calculation.
We review our long-lived assets on an annual basis or whenever events or circumstances indicate the carrying amount of an asset may not be recoverable and our impairment evaluations take into consideration the current and anticipated economic climate. During the year ended December 31, 2025, we recognized an impairment charge of approximately $12.9 million on two undeveloped land parcels, as the estimated fair value was less than its book value. The impairmentsee in full comparisonexpenseassociated with land development activities for the year ended December 31, 2024 of approximately $41.0 million related to three projectsweforhavewhichputdevelopmentonactivitieshold.had been discontinued. Theseimpairmentchargesrepresentreflect the difference betweeneach parcel'sthe estimated fair value of each parcel andtheits carryingvalue,amount.whichThe 2024 impairments included the original purchase priceandas well as other capitalized development costs.
“(1) For the year ended December 31, 2023, activity relates to proceeds from an earn-out from a previously sold technology investment.”see in full comparison
“In February 2025, we established a commercial paper program under which we may issue short-term, unsecured Notes under the exemption from registration contained in Section (4)(a) of the Securities Act. Amounts available under the commercial paper program may be borrowed, repaid, and reborrowed from time to time, with the aggregate face or principal amount of the Notes outstanding under the commercial paper program at any time not to exceed $600 million. The Notes will have maturities of up to 397 days from the date of issue. …”see in full comparison
Net cash used in financing activities totaled approximately $322.0 million during the year ended December 31, 2025 as compared to approximately $725.5 million during the year ended December 31,see in full comparison20242024.asCashcompared to approximately $417.2 millionoutflows during the year ended December 31,2023.2025 primarily related to $461.0 million used for distributions to common shareholders and non-controlling interest holders, $270.7 million used for common share repurchases, and net payments of $178.0 million of borrowings from our unsecured revolving credit facility. These outflows were partially offset by net proceeds of approximately $588.1 million of borrowings from our commercial paper program. Cash outflows during 2024 primarily related to the repayment of our $250 million senior unsecured notes in September 2024 and the repayment of our $300 million unsecured term loan and the $250 million senior unsecured notes in January 2024. Cash outflows also related to $451.0 million used for distributions to common shareholders and non-controlling interest holders, and $50.0 million used for common share repurchases. These outflows were partially offset by net proceeds of approximately $396.0 million from the issuance of $400.0 million senior unsecured notes in January 2024, and net proceeds of $178.0 million of borrowings from our unsecured revolving credit facility.Cash outflows during 2023 primarily related to $434.9 million used for distributions to common shareholders and non-controlling interest holders, the repayment of $250 million senior unsecured notes and $187.7 million secured variable rate notes, which includes prepayment penalties and fees, and the net repayment of $42.0 million of borrowings from our unsecured revolving credit facility. These outflows were partially offset by net proceeds of approximately $498.2 million from the issuance of $500.0 million senior unsecured notes in November 2023.
As of December 31,see in full comparison2024,2025, we had approximately$1.0$1.2 billion available under our$1.2unsecuredbillionrevolving credit facility, which we have at our option, the ability to extend to August 2027 and the ability to increase the facility up to $500 million subject to certain conditions. We currently plan to use our unsecured revolving credit facilityandasdoanotliquidityhavebackstopanyfor borrowings under our commercial paper program. At December 31, 2025, we had $590.0 million outstanding under our commercial paper program. Over the next 12 months, contractual debtmaturingmaturitiesuntilincludeAprilthese2026.commercialAspaper borrowings as well as other debt obligations of $567.8 million. Additionally, as of December 31,2024,2025, and through the date of this filing, we also had common shares having an aggregate offering price of up to $500.0 million remaining available for sale under our 2023 ATM program. We believe we are well-positioned with a strong balance sheet and sufficient liquidity to fund future acquisitions, new development, redevelopment, and other capital funding requirements. We will, however, continue to assess and take further actions we believe are prudent to meet our objectives and capital requirements.
Full comparison: every changed paragraph (75)
We consider portions of this report to be "forward-looking" within the meaning of Section 27A of the Securities Act of 1933 (the "Securities Act") and Section 21E of the Exchange Act, both as amended, with respect to our expectations for future periods. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions, or other items relating to the future; forward-looking statements are not guarantees of future performance, results, or events. Although we believe the expectations reflected in our forward-looking statements are based upon reasonable assumptions, we can give no assurance our expectations will be achieved. Any statements contained herein which are not statements of historical fact should be deemed forward-looking statements. Reliance should not be placed on these forward-looking statements as these statements are subject to known and unknown risks, uncertainties, and other factors beyond our control and could differ materially from our actual results and performance.
•Volatility in capital and credit markets, cost increases, or other unfavorable changes in economic conditions, either nationally or regionally in one or more of the markets in which we operate, could adversely impact us;
•Rising interest rates could increase our borrowing costs, lower the value of our real estate, and decrease our share price, leading investors to seek higher yields through other investments;
•Competition could adversely affect our ability to acquire properties; and
•We could be adversely impacted due to our share price fluctuations.fluctuations; and
•Rising interest rates could increase our borrowing costs, lower the value of our real estate, and decrease our share price, leading investors to seek higher yields through other investments.
Our results for the year ended December 31, 2024,2025, reflect an increase in same store revenues of approximately 1.3%0.8% as compared to the same period in 2023.2024. The increase was dueprimarily todriven by higher rentalrevenues from other income as a result of higher average rental rates and lowerfavorable uncollectiblechanges revenue,in occupancy, which we believe was primarily attributable to job growth, favorable demographics with a higher propensity to rent versus buy,buy and continued demand for multifamily housing in our markets.
We believe the levels of new multifamily supply in the submarkets and asset classes in which we operate willare continuemanageable toand bemoderating elevatedlevels intoof 2025new butsupply should be met with continued demand to absorb these new deliveries. However, if this were to change or other economic conditions were to worsen, our operating results could be adversely affected.
Net income attributable to common shareholders was $163.3$384.5 million and $403.3$163.3 million for the years ended December 31, 20242025 and December 31, 2023,2024, respectively. The decreaseincrease during the year ended December 31, 20242025 as compared to the same period in 20232024 was primarily due to recognizingan aincrease higherin gaingains on salesales of two operating properties in 2023 of $225.4 million as compared to recognizingand a gain on sale of one operating property in 2024 of $43.8 million. The decrease was also due to recognizing a $41.0 millionlower impairment charge associated with land development activities in 20242025 as compared to 2024. The increase was partially offset by higher depreciation expense and noamortization impairmentsof recognizedin-place leases relating to the acquisition of four operating properties completed in 2023.2025. See further discussion of our 20242025 operations as compared to 20232024 in "Results of Operations," below.
At December 31, 2024,2025, we had a total of three projects under construction to be comprised of 1,1381,162 apartment homes. Initial occupanciesoccupancy offor these three projects areis currently scheduledexpected to occurbegin within the next two years. As of December 31, 2024,2025, we estimated the total additionalremaining cost to complete the construction of these three properties isto be approximately $243.6$213.8 million.
In the third quarter of 2024, we stopped development activities for the foreseeable future on four of our developments and recorded approximately $41.0 million of impairment charges on three of these land parcels. We review our long-lived assets on an annual basis or whenever events or circumstances indicatedindicate the carrying amount of an asset may not be recoverable and our impairment evaluations take into consideration the current and anticipated economic climate. In the fourth quarter of 2025, we recorded an impairment charge of approximately $12.9 million related to two undeveloped land parcels as the estimated fair value was less than its book value. We currently have threetwo other land parcels held for future development we plan to develop, and the commencement of future developments may be impacted by macroeconomic issues, multifamily market conditions, and other factors. We will continue to evaluate future development starts based on market, economic, and capital market conditions. There can be no assurance we will not have impairmentsimpairment charges in the future.
DispositionAcquisitions
In 2025, we acquired four operating properties, consisting of a 352-apartment home community in Leander, Texas in January, a 435-apartment home community in Nashville, Tennessee in February, a 360-apartment home community in Clearwater, Florida in May, and a 322-apartment home community in Orlando, Florida in December for approximately $422.9 million.
Dispositions
In 2025, we completed five dispositions consisting of one operating property in Houston, Texas in June, one dual-phased operating property in Houston, Texas and one operating property in Irving, Texas in July, and one dual-phased operating property in Houston, Texas and one operating property in Phoenix, Arizona in November for a total of approximately $374.5 million and recognized a total gain of approximately $260.9 million.
In February 2024, we sold one operating property comprised of 592 apartment homes located in Atlanta, Georgia, for approximately $115.0 million and recognized a gain of approximately $43.8 million.
In February 2025, we established a commercial paper program (the "Program") under which we may issue the commercial paper notes (the "Notes") under the exemption from registration contained in Section (4)(1) of the Securities Act. Amounts available under the Program may be borrowed, repaid, and reborrowed from time to time, with the aggregate face or principal amount of the Notes outstanding under the Program at any time not to exceed $600.0 million. At December 31, 2025, we had an aggregate of $590.0 million principal amount of Notes outstanding under the Program which had a weighted average interest rate of 3.84%.
In 2025, we repurchased 2,531,018 common shares at an average price of $106.92 per share for approximately $270.7 million.
In January 2024, we issued $400.0 million of 4.90% senior unsecured notes due January 15, 2034. We utilized a portion of the net proceeds from these notes to repay the outstanding balance on our $300.0 million, 6.21% unsecured term loan due in August 2024. As a result of this early repayment of the $300.0 million unsecured term loan, we expensed approximately $0.9 million of unamortized loan costs, which are reflected in the loss on early retirement of debt in our consolidated statements of income and comprehensive income.
In September 2024, we extended the maturity date of our $40.0 million unsecured floating rate term loan with an unrelated third party from September 2024 to September 2026.
During the year ended December 31, 2024, we utilized cash on hand and our unsecured revolving credit facility to repay unsecured notes payable totaling $500.0 million, plus accrued interest.
During the year ended December 31, 2024, we repurchased 515,974 common shares for approximately $50.0 million at an average price of $96.88 per share under our $500.0 million share repurchase plan. As of the date of this filing, the remaining dollar value of our common equity securities authorized to be repurchased under this plan was approximately $450.0 million.
In January 2026, we repurchased 1,096,807 common shares at an average price of $110.03 per share for approximately $120.7 million. In February 2026, our Board of Trust Managers authorized a new $600.0 million share repurchase plan which allows for the repurchase of our common equity securities through open-market purchases, block purchases, and privately negotiated transactions. This new plan terminated and replaced our previous share repurchase plan, which had approximately $58.6 million remaining for repurchases at the time it was terminated. As of the date of this filing, the full $600.0 million authorized under the new plan remained available for repurchases.
In January 2025, we purchased one operating property comprised of 352 homes located in the Austin, Texas metropolitan area for approximately $67.7 million.
Subject to market conditions, we intend to continue to seek opportunities to acquire operating communities, develop new communities, and to redevelop and reposition existing communities. We also intend to evaluate our operating property and land development portfolios and plan to continue our practice of selective dispositions and redeploying capital as market conditions warrant and opportunities arise. We expect to maintain a strong balance sheet and preserve our financial flexibility by continuing to focus on our core fundamentals which currently are generating positive cash flows from operations, maintaining appropriate debt levels and leverage ratios, and controlling overhead costs. We intend to meet our short-term and long-term liquidity requirements through a combination of one or more of the following: cash flows generated from operations, draws on our unsecured revolving credit facility,facility and commercial paper program, the use of debt and equity offerings under our automatic shelf registration statement, proceeds from property dispositions, equity issued from our 2023 at-the-market ("ATM") programs,program, other unsecured borrowings, or secured mortgages.
As of December 31, 2024,2025, we had approximately $1.0$1.2 billion available under our $1.2unsecured billionrevolving credit facility, which we have at our option, the ability to extend to August 2027 and the ability to increase the facility up to $500 million subject to certain conditions. We currently plan to use our unsecured revolving credit facility andas doa notliquidity havebackstop anyfor borrowings under our commercial paper program. At December 31, 2025, we had $590.0 million outstanding under our commercial paper program. Over the next 12 months, contractual debt maturingmaturities untilinclude Aprilthese 2026.commercial Aspaper borrowings as well as other debt obligations of $567.8 million. Additionally, as of December 31, 2024,2025, and through the date of this filing, we also had common shares having an aggregate offering price of up to $500.0 million remaining available for sale under our 2023 ATM program. We believe we are well-positioned with a strong balance sheet and sufficient liquidity to fund future acquisitions, new development, redevelopment, and other capital funding requirements. We will, however, continue to assess and take further actions we believe are prudent to meet our objectives and capital requirements.
We generally consider a property stabilized once it reaches 90% occupancy. During the year ended December 31, 2024,2025, westabilization completedwas the construction of 387 homesachieved at Camdenthree NoDaoperating inproperties Charlotte,as North Carolina and achieved stabilization during the quarter ended March 31, 2024.follows:
At December 31, 2024,2025, there werewas threeone completed operating propertiesproperty in lease-up as follows:
Changes in revenues and expenses related to our operating properties from period-to-period are due primarily to the performance of stabilized properties in the portfolio, the lease-up of newly-constructed properties, acquisitions,and the impact of acquisitions and dispositions.
Management considers property net operating income ("NOI") to be an appropriate supplemental measure of operating performance to net income because it reflects the operating performance of our communities without an allocation of corporate level property management overhead or general and administrative costs. We define NOI is defined as total property incomerevenue less total property operating expenses. NOI is further detailed in the Property-Level NOI table as seen below.below, NOIand is not defined by accounting principles generally accepted in the United States of America ("GAAP") and should not be considered an alternative to net income as an indication of our operating performance, should not be considered an alternative to net cash from operating activities as a measure of liquidity, and should not be considered an indication of cash available to fund cash needs.performance. Additionally, NOI as disclosed by other REITs may not be comparable to our calculation.
(1) For 2024,2025, same store communities are communities we owned and were stabilized since January 1, 2023,2024, excluding communities under redevelopment and properties held for sale. Non-same store communities are stabilized communities not owned or stabilized since January 1, 2023,2024, including communities under redevelopment and excluding properties held for sale. We define communities under redevelopment as communities with capital expenditures that improve a community's cash flow and competitive position through extensive unit, exterior building, common area, and amenity upgrades. Management believes same store information is useful as it allows both management and investors to determine financial results over a particular period for the same set of communities. Development and lease-up communities are non-stabilized communities we have developed since January 1, 2023,2024, excluding properties held for sale. Dispositions/other includes those communities disposed of or held for sale which are not classified as discontinued operations, non-multifamily rental properties, expenses related to land holdings not under active development, and other miscellaneous revenues and expenses, including net above or below market leases, casualty-related expenses net of recoveries, and severance related costs.
The $19.3 million increase in same store property revenues for the year ended December 31, 2024, as compared to the same period in 2023, was primarily due to higher rental revenue due to higher average rental rates of approximately $9.0 million, lower uncollectible revenue of approximately $6.5 million, and higher other rental income of approximately $1.6 million. The increase was also due to approximately $2.1 million of higher income from our utility and ancillary income programs.
The $9.4$11.0 million increase in same store property expensesrevenues for the year ended December 31, 2024,2025, as compared to the same period in 2023,2024, was primarily due to higheran salaries and benefitsincrease of approximately $5.7$4.5 million,million higherfrom utilitiesour expenseutility and expenses associated with our ancillary programsincome programs, approximately $3.6 million due to favorable changes in occupancy, $1.9 million of approximatelylower $4.8uncollectible million, higher marketing, leasing,revenues, and other expenses of approximately $2.4$0.8 million, higher repairs and maintenance expense of approximately $2.3 million, and higher property general and administrative expenses of approximately $0.9 million. Themillion increase wasfrom partiallyother offsetrental by lower property insurance expense of approximately $6.4 million and lower real estate taxes of approximately $0.3 million.income.
The $8.6 million increase in same store property expenses for the year ended December 31, 2025, as compared to the same period in 2024, was primarily due to higher salaries and benefits of $3.0 million, higher general and administrative and marketing and leasing expenses of approximately $2.8 million, higher utilities of approximately $2.3 million, and higher repair and maintenance expense of approximately $0.5 million.
Property NOI from non-same store and development and lease-up communities increased approximately $21.7 million for the year ended December 31, 2025, as compared to the same period in 2024.
The increase was related to higher NOI from our non-same store communities of approximately $21.0 million for the year ended December 31, 2025, as compared to the same period in 2024. The increase was primarily due to the acquisition of four operating properties completed in 2025, and the stabilization of one operating property in 2024 and three additional properties in 2025.
The increase was also related to higher NOI from our development and lease-up communities of $0.7 million for the year ended December 31, 2025, as compared to the same period in 2024. The increase was primarily due to the timing of lease-up for one operating property which finished construction in 2025.
Property NOI from non-same store and development and lease-up communities increased $10.8 million for the year ended December 31, 2024, as compared to the same period in 2023. The increase was primarily due to an increase from non-same store communities of approximately $6.8 million and an increase from development and lease-up communities of approximately $4.0 million for the year ended December 31, 2024, as compared to the same period in 2023. The increase in property NOI from our non-same store communities was primarily due to the stabilization of two operating properties in 2023 and one operating property in 2024. The increase in property NOI from our development and lease-up communities was primarily due to the timing of three development communities under lease-up, one of which completed construction during the second quarter of 2024 and two of which completed construction during the fourth quarter of 2024.
Dispositions/other property NOI decreased approximately $28.8$2.3 million for the year ended December 31, 20242025 as compared to the same period in 2023. The decrease was comprised of lower NOI related to dispositions of approximately $24.3 million due to the dispositions of one operating property in each of June 2023, December 2023, and February 2024. The decrease was also due to lower NOI of approximately $8.0 million related to five dispositions completed in 2025, partially offset by higher other property NOI of approximately $4.5$5.7 millionmillion, primarily duedriven toby higherlower storm-related insurance expenses of approximately $5.6 million, partially offset by approximately $1.1 million of higher revenues related to business interruption proceeds forduring the year ended December 31, 20242025. asThe comparedother property NOI increase was partially offset by lower revenues due to higher business interruption insurance proceeds received during the sameyear periodended inDecember 2023.31, 2024.
Fee and asset management income from construction and development activities at our third-party construction projects increased approximately $3.7$5.8 million for the year ended December 31, 20242025 as compared to 2023.2024. The increase was primarily related to higher fees earned on the completion of third-party construction projects due to higher activity during 20242025 as compared to 2023.the same period in 2024.
Interest and other income increaseddecreased approximately $3.5$4.2 million for the year ended December 31, 2024,2025, as compared to 2023.the same period in 2024. The increasedecrease was primarily due to higher investment interest income earned due to having higherlower average cash balances induring 2024the year ended December 31, 2025 as compared to 2023.2024.
Our deferred compensation plans recognized income of approximately $12.6$19.3 million and $15.4$12.6 million in 20242025 and 2023,2024, respectively. The changeschange werewas related to the performance of the investments held in deferred compensation plans for participants and werewas directly offset by the expense related to these plans, as discussed below.
Property management expenses, which primarily represent regional supervision and accounting costs related to property operations, increaseddecreased approximately $4.6$0.9 million for the year ended December 31, 20242025 as compared to 2023.the same period in 2024. The increasedecrease was primarily related to lower advocacy contributions during the year ended December 31, 2025 as compared to the same period in 2024, partially offset by higher salary,salaries, benefits, and incentive compensation costs, and higher advocacy contributions.costs. Property management expenses were 2.5%2.4% and 2.2%2.5% of total property revenues for the years ended December 31, 20242025 and 2023,2024, respectively.
General and administrative expensesexpense increased approximately $9.9$7.0 million for the year ended December 31, 20242025 as compared to 2023.2024. The increase was primarily related to higher salaries, benefits, and incentive compensation costs, higher legal expenses,expenses and higher abandoned acquisition and development pursuit costs. Excluding income on deferred compensation plans, general and administrative expensesexpense werewas 4.7%5.0% and 4.0%4.7% of total revenues for the years ended December 31, 20242025 and 2023,2024, respectively.
Interest expense increased approximately $8.4 million for the year ended December 31, 2025 as compared to 2024. The increase was primarily due to increases in interest expense of $16.5 million relating to having higher average balances on our commercial paper program entered into in February 2025 and decreases in capitalized interest expense of $3.8 million due to having lower average balances in assets under construction during the year ended December 31, 2025 as compared to the same period in 2024. The increase was partially offset by lower interest expense of $11.9 million relating to debt repayments during 2024, including $250 million, 3.68% senior unsecured notes in September, and a $300 million, 6.21% unsecured term loan and $250.0 million of 4.36% senior unsecured notes in January, as well as lower variable rate interest expense recognized on the $500 million senior unsecured notes during the year ended December 31, 2025 as compared to the same period in 2024.
Interest expense decreased approximately $3.6 million for the year ended December 31, 2024 as compared to 2023. The decrease was primarily due to the repayments of a $300 million, 6.21% unsecured term loan and $250.0 million, 4.36% senior unsecured notes in January 2024, and the repayment of a $250 million, 3.68% senior unsecured notes in September 2024, and lower interest expense recognized on our unsecured revolving credit facility resulting from lower average balances outstanding during the year ended December 31, 2024 as compared to the same period in 2023. The decrease was also due to the early retirement of $185.2 million of secured variable rate notes in May 2023 and the repayment of $250 million, 5.07% senior unsecured notes in June 2023. The decrease was partially offset by increases in interest expense due to the issuance of $500 million senior unsecured notes in November 2023, the issuance of $400 million senior unsecured notes in January 2024 and decreases in capitalized interest expense primarily due to having lower average balances in assets under construction during the year ended December 31, 2024 as compared to the same period in 2023.
Depreciation and amortization expense increased approximately $7.2$29.0 million for the year ended December 31, 20242025 as compared to 2023.2024. The increase was primarily due to thehigher completiondepreciation expense and amortization of apartmentin-place homesleases of $31.4 million related to the acquisition of operating properties in ourJanuary, developmentFebruary, pipelineMay, and theDecember completion of capitalized improvements during 2023 and 2024.2025. The increase was partially offset by thelower dispositiondepreciation expense of one$3.5 million related to the dispositions of an operating property and a dual-phased operating property in November 2025, an operating property and a dual-phased operating property in July 2025, and an operating property in each of June 2023, December 2023,2025 and February 2024.
Our deferred compensation plans incurred an expense of approximately $12.6$19.3 million and $15.4$12.6 million in 20242025 and 2023,2024, respectively. The changeschange werewas related to the performance of the investments held in deferred compensation plans for participants and were directly offset by the income related to these plans, as discussed in the Non-Property Income section above.
We review our long-lived assets on an annual basis or whenever events or circumstances indicate the carrying amount of an asset may not be recoverable and our impairment evaluations take into consideration the current and anticipated economic climate. During the year ended December 31, 2025, we recognized an impairment charge of approximately $12.9 million on two undeveloped land parcels, as the estimated fair value was less than its book value. The impairment expense associated with land development activities for the year ended December 31, 2024 of approximately $41.0 million related to three projects wefor havewhich putdevelopment onactivities hold.had been discontinued. These impairment charges representreflect the difference between each parcel'sthe estimated fair value of each parcel and theits carrying value,amount. whichThe 2024 impairments included the original purchase price andas well as other capitalized development costs.
The $0.9 million loss on early retirement of debt during the year ended December 31, 2024 was due to the write-off of unamortized loan costs related to the early retirement of our $300 million unsecured term loan in January 2024, which was scheduled to mature in August 2024. The $2.5 million loss on early retirement of debt during the year ended December 31, 2023 was due to the early repayment of our $185.2 million secured variable rate notes due in 2024 and 2026, and consisted of approximately $1.7 million of prepayment penalties and fees and approximately $0.8 million of unamortized fair value adjustments.
In 2025, we recognized a total gain of $260.9 million from the dispositions of one operating property in Houston, Texas in June, one dual-phased operating property in Houston, Texas and one operating property in Irving, Texas in July, and one dual-phased operating property in Houston, Texas and one operating property in Phoenix, Arizona in November. The $43.8 million gain recognized in 2024 was due to the disposition of one operating property in Atlanta, Georgia in February.
The $43.8 million gain on sale for the year ended December 31, 2024 was due to the disposition of one operating property located in Atlanta, Georgia in February 2024. The $225.4 million gain on sale for the year ended December 31, 2023 was primarily due to the disposition of two operating properties located in Costa Mesa, California.
Income tax expense decreasedincreased approximately $0.7$1.1 million for the year ended December 31, 20242025 as compared to the same period in 2023.2024. The decreaseincrease was primarily due to lower state income and franchise income taxes relating to recent tax legislation changes in certain state jurisdictions, offset by an increase inhigher taxable income dueresulting tofrom higherincreased third-party construction activities within a taxable REIT subsidiary. The increase was also due to higher state and franchise income taxes for the year ended December 31, 2025 as compared to the same period in 2024 primarily due to tax legislation changes enacted in certain state jurisdictions in 2024.
Management considers FFO, Core FFO, and Core AFFO to be appropriate supplementary measures of the financial performance of an equity REIT. The National Association of Real Estate Investment Trusts ("NAREIT") currently defines FFO as net income (computedcalculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, and adjustments for unconsolidated joint ventures to reflect FFO on the same basis. Our calculation of diluted FFO also assumes conversion of all potentially dilutive securities, including certain non-controlling interests, which are convertible into common shares. We consider FFO to be an appropriate supplemental measure of operating performance because, by excluding gains and losses on dispositions of real estate, impairment write-downs of certain real estate assets, and depreciation, FFO can assist in the comparison of the operating performance of a company's real estate investments between periods or to different companies.
Core FFO represents FFO as further adjusted for items not considered part of our core business operations. We consider Core FFO to be a helpful supplemental measure of operating performance as it excludes not only depreciation expense of real estate assets, but it also excludes certain items which, by nature, are not comparable period over period and therefore tends to obscure actual operating performance. Our definition of Core FFO may differ from other REITs, and there can be no assurance our basis for computing this measure is comparable to other REITs.
(1) For the year ended December 31, 2023, activity relates to proceeds from an earn-out from a previously sold technology investment.
We also intend to maintain or strengthen our capital and liquidity positions by continuing to focus on our core fundamentals, which currently are generating positive cash flows from operations, maintaining appropriate debt levels and leverage ratios, and controlling overhead costs.
Our primary source of liquidity is cash flows generated from operations. Other sources may include one or more of the following: availability under our unsecured revolving credit facility,facility and commercial paper program, the use of debt and equity offerings under our automatic shelf registration statement, proceeds from property dispositions, equity issued from our 2023 ATM program, and other unsecured borrowings or secured mortgages. We believe our liquidity and financial condition are sufficient to meet all of our reasonably anticipated cash needs over the next 12 months from our filing date including:
•funding of property developments, repositions, redevelopments, and acquisitions; and
•the minimum dividend payments required to maintain our REIT qualification under the Code.Internal Revenue Code; and
What changed in the latest 10-Q
Risk Factors
There have been no material changes to the Risk Factors previously disclosed in Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2025.
No wording changes found in this section.
Full comparison: every changed paragraph (0)
Management's Discussion & Analysis (MD&A)
New heading “Properties Held for Sale”
New heading “(1) As of June 30, 2026, these properties were classified as held for sale and were subsequently sold in July 2026.”
New heading “(1) Property in lease-up was 13% leased at July 29, 2026.”
New heading “Held-for-Sale Analysis”
Removed heading “Subsequent Events”
Largest changes
“On July 8, 2026, we entered into a 364-day unsecured term loan facility ("term loan facility") with an aggregate principal amount of $350.0 million. The interest rate on our term loan facility is based upon, at our option, (a) Daily SOFR or one-, three- or six-month Term SOFR plus, in each case, a spread based on our credit rating or (b) a base rate equal to the higher of: (i) the Federal Funds Rate plus 0.50%, (ii) Bank of America, N.A.'s prime rate, (iii) Term SOFR plus 1.0%, and (iv) 1.0%, plus a spread based on our credit rating. …”see in full comparison
Net cash from operating activities was approximatelysee in full comparison$148.1$359.7 million during thethreesix months endedMarchJune31,30, 2026 as compared to approximately$148.2$378.9 million for the same period in 2025. Theslightdecrease was primarily due to the $26.5 million payment relating to the Class Action Litigation, and the timing of real estate tax payments in 2026 as compared to 2025, partially offset bya higher prepayment of rental income received from our residents, the growth attributable to our non-same store communities, including the acquisition of four operating properties during 2025, andthe timing ofone operatingpropertywhichinsurancecompleted construction in 2025.payments. See further discussion of our 2026 operations as compared to 2025 in "Results of Operations."
“On July 8, 2026, we entered into a 364-day unsecured term loan facility ("term loan facility") with an aggregate principal amount of $350.0 million. The interest rate on our term loan facility is based upon, at our option, (a) Daily SOFR or one-, three- or six-month Term SOFR plus, in each case, a spread based on our credit rating or (b) a base rate equal to the higher of: (i) the Federal Funds Rate plus 0.50%, (ii) Bank of America, N.A.'s prime rate, (iii) Term SOFR plus 1.0%, and (iv) 1.0%, plus a spread based on our credit rating.”see in full comparison
“(1) As of June 30, 2026, these properties were classified as held for sale and were subsequently sold in July 2026.”see in full comparison
We believe we remain well positioned from a liquidity and capital resources perspective. As ofsee in full comparisonMarchJune31,30, 2026, we had approximately$1.2$842.7billionmillion available under our unsecured revolving creditfacilityfacility,andwhichcurrentlyalsoplan to use our unsecured revolving credit facilityserves as a liquidity backstop for our commercial paper program. At quarter-end, outstanding borrowings under the commercial paper program;attotaledMarch$600.031,million,2026,andweotherhadcontractual$358.8debtmillionmaturitiesoutstandingdueunder our commercial paper program. Overwithin the next 12months,monthscontractualtotaleddebtapproximatelymaturities include these commercial paper borrowings as well as other debt obligations of $663.8$695.3 million.Additionally,In addition, as of the filingdate we had common shares with an aggregate offering amount ofdate, up to $500.0 millionremainingof common shares remained available forsaleissuance under our 2026 ATM program. Subsequent to quarter-end, we also completed the disposition of 11 California properties, which generated additional liquidity and enhanced our financial flexibility. We believewe are well-positioned with aour strong balancesheetsheet, available liquidity, and access to capital provide sufficientliquidityresources to fund future acquisitions,newdevelopmentdevelopment,andredevelopment,redevelopment activities, scheduled debt maturities, and other capitalrequirements including scheduled debt maturities. We will, however, continue to assess and take further actions we believe are prudent to meet our objectives and capitalrequirements.
Full comparison: every changed paragraph (76)
Camden Property Trust and all consolidated subsidiaries are primarily engaged in the ownership, management, development, reposition, redevelopment, acquisition, and construction of multifamily apartment communities. We focus on investing in markets characterized by high-growth economic conditions, strong employment, and attractive quality of life which we believe leads to higher demand for our apartments and retention of our residents. As of MarchJune 31,30, 2026, we owned interests in, operated, or were developing 174179 multifamily properties comprised of 59,41660,838 apartment homes across the United States. InOf addition,the we179 properties, three properties were under construction as of June 30, 2026, and will consist of a total of 1,162 apartment homes when completed. We also own other land holdings which we may develop into multifamily apartment communities in the future.
Our results forDuring the three and six months ended MarchJune 31,30, 20262026, our results reflect anrelatively increase instable same store revenues of approximately 0.2%as compared to the same periodperiods in 2025,2025. drivenThe stability was in part due to consistent occupancy, which we believe was primarily byattributable higherto other income. We believestrong resident retention remains strong,retention, supported by favorable demographicsdemographic trends and continued demand for multifamily housing in our markets.
We believe the levels of new multifamily supply in the submarkets and asset classes in which we operate are manageable and moderating levels of supply should likely be met with continued demand to absorb these new deliveries. However, if this were to change or other economic conditions were to worsen, our operating results could be adversely affected.
Net income attributable to common shareholders was $42.4 million and $38.8$18.8 million for the three months ended MarchJune 31,30, 2026 andas 2025,compared respectively.to $80.7 million for the same period ended 2025. For the six months ended June 30, 2026, net income attributable to common shareholders was $61.2 million compared to $119.5 million for the same period in 2025. The $3.6 million increasedecrease during the three months ended MarchJune 31,30, 2026 as compared to the same period in 2025 was primarily due to the recognition of a $47.3 million gain on sale of an operating property,property includingin land,June 2025, higher interest expense of $68.1$6.0 million,million partiallyassociated offsetwith byour recent debt issuance and other borrowings, and higher otherdepreciation non-operating expensesexpense of approximately $59.1$5.0 million due to nine acquisitions completed in 2025 and 2026. The decrease during the six months ended June 30, 2026 was primarily due to the settlement of a $53.0 million class action matter and ana $4.9 million impairment charge related to certain technology investments.investments recognized during the six months ended June 30, 2026. See further discussion of our 2026 operations as compared to 2025 in "Results of Operations," below.
At MarchJune 31,30, 2026, we had a total of three properties under construction comprisingcomprised of 1,162 apartment homes. As of MarchJune 31,30, 2026, we estimated the total additional cost to complete the construction of these three properties was approximately $176.6$140.1 million.
On April 7, 2026, we entered into a binding term sheet to settle the RealPage class action litigation matter related to the use of a revenue management software. We andSubsequently, the plaintiffsparties agreedexecuted a definitive settlement agreement, which received the required preliminary court approvals during the three months ending June 30, 2026. Pursuant to negotiate and execute a long-formthe settlement agreement on or before May 7, 2026, which will be subject to preliminary and final approval by the court. Under the term sheet,agreement, we agreed to pay an aggregate of $53.0 million to settle all claims which have been asserted, or could have been asserted, against us in the litigation, inclusive of class member recoveries, plaintiffs’ attorneys’ fees, and thesettlement costsadministration costs. The settlement payment was payable in two equal installments of administering$26.5 million, the settlement.first of which was timely paid during the three months ending June 30, 2026 and the second of which is due during the third quarter of 2026.
During the three months ended March 31, 2026 we sold one operating property in Irving, Texas for approximately $77.0 million and recognized a gain of approximately $67.9 million.
On July 8, 2026, we entered into a 364-day unsecured term loan facility ("term loan facility") with an aggregate principal amount of $350.0 million. The interest rate on our term loan facility is based upon, at our option, (a) Daily SOFR or one-, three- or six-month Term SOFR plus, in each case, a spread based on our credit rating or (b) a base rate equal to the higher of: (i) the Federal Funds Rate plus 0.50%, (ii) Bank of America, N.A.'s prime rate, (iii) Term SOFR plus 1.0%, and (iv) 1.0%, plus a spread based on our credit rating.
Acquisitions
During the six months ended June 30, 2026, we acquired five operating properties for an aggregate purchase price of approximately $449.3 million, including a 288-apartment home community in Orlando, Florida and a 269-apartment home community in Alpharetta, Georgia, both acquired in April; a 196-apartment home community in Franklin, Tennessee, a 349-apartment home community in Roanoke, Texas, and a 320-apartment home community in Gilbert, Arizona, each acquired in June.
In July 2026, we acquired two operating properties for an aggregate purchase price of approximately $196.1 million, including a 296-apartment home community in Tampa, Florida and a 343-apartment home community in Charlotte, North Carolina.
During the six months ended June 30, 2026, we acquired for future development purposes two parcels of land for an aggregate purchase price of approximately $45.0 million. These acquisitions, both completed in May 2026, consisted of approximately 17.9 acres in Morrisville, North Carolina and 64.4 acres in Tampa, Florida.
During the six months ended June 30, 2026 we sold one operating property in Irving, Texas for approximately $77.0 million in February and recognized a gain of approximately $67.9 million.
Properties Held for Sale
As of June 30, 2026, 11 operating properties, comprised of 3,620 apartment homes, located in Los Angeles/Orange County and San Diego/Inland Empire, California were classified as held for sale and did not meet the criteria to qualify as a discontinued operation as the disposition did not represent a strategic shift which has or will have a major effect on our operations or financial results. As such, the results of operations for these properties continue to be included in income from continuing operations for all periods presented. At June 30, 2026, these California properties had aggregate net real estate and other assets of approximately $625.3 million, consisting of $463.0 million of buildings and improvements, less accumulated depreciation, $159.0 million of land, and $3.3 million of restricted cash. These properties also had liabilities of approximately $6.4 million, primarily consisting of resident deposits and prepaid rental income. The 11 operating properties were subsequently sold in July 2026 for an aggregate sales price of approximately $1.6 billion.
In February 2026, our Board of Trust Managers authorized a new share repurchase plan of up to $600.0 million.million of our common shares or equity securities. During February and March 2026, we repurchased an additional 1,536,223 common shares at an average price of $102.91 per share, and a total cost of approximately $158.1 million under the share repurchase plan authorized in February 2026. In Aprilthe 2026,second quarter, we repurchased 1,429,136 common shares at an average price of $100.78 per share for approximately $144.1 million. Through June 30, 2026, we repurchased an aggregate of 2,965,359 common shares under the February 2026 share repurchase plan for approximately $302.1 million. As of the date of this filing, $297.8$297.9 million remained available for repurchases under our share repurchase plan.
In April 2026, we renewed our at-the-market ("ATM") share offering program, which was expiring pursuant to its terms in May 2026, and entered into a replacement ATM share offering program through which we can, but have no obligation to, sell common shares and we may also enter into separate forward sale agreements with forward purchasers for an aggregate offering price of up to $500.0 million (the "2026 ATM program"). As of the date of this filing, we have $500.0 million available for sale under this program.
On March 27, 2026, the Company announced leadership changes effectiveEffective March 24, 2026.2026, Richard J. Campo, our former Chief Executive Officer and Chairman of the Board of Trust Managers, became the Executive Chairman of the Board of Trust Managers. Additionally, Alexander J. Jessett became the Chief Executive Officer of the Company, Laurie A. Baker became the President and Chief Operating Officer of the Company, and Benjamin D. Fraker became the Executive Vice President-Chief Financial Officer and Treasurer of the Company.
Effective July 2, 2026, Kevin J. Necas, Jr. was appointed Senior Vice President - Chief Accounting Officer and designated as the Company's principal accounting officer following the retirement of Michael P. Gallagher.
Subsequent Events
In April 2026, we acquired two operating properties, consisting of a 269-apartment home community in the Atlanta, Georgia metropolitan area and a 288-apartment home community in Orlando, Florida for approximately $171.3 million.
In April 2026, we created an at-the market ("ATM") share offering program through which we can, but have no obligation to, sell common shares and we may also enter into separate forward sale agreements with forward purchasers for an aggregate offering price of up to $500.0 million (the "2026 ATM program"). As of the date of this filing, we have $500.0 million available for sale under this program.
We believe we remain well positioned from a liquidity and capital resources perspective. As of MarchJune 31,30, 2026, we had approximately $1.2$842.7 billionmillion available under our unsecured revolving credit facilityfacility, andwhich currentlyalso plan to use our unsecured revolving credit facilityserves as a liquidity backstop for our commercial paper program. At quarter-end, outstanding borrowings under the commercial paper program; attotaled March$600.0 31,million, 2026,and weother hadcontractual $358.8debt millionmaturities outstandingdue under our commercial paper program. Overwithin the next 12 months,months contractualtotaled debtapproximately maturities include these commercial paper borrowings as well as other debt obligations of $663.8$695.3 million. Additionally,In addition, as of the filing date we had common shares with an aggregate offering amount ofdate, up to $500.0 million remainingof common shares remained available for saleissuance under our 2026 ATM program. Subsequent to quarter-end, we also completed the disposition of 11 California properties, which generated additional liquidity and enhanced our financial flexibility. We believe we are well-positioned with aour strong balance sheetsheet, available liquidity, and access to capital provide sufficient liquidityresources to fund future acquisitions, newdevelopment development,and redevelopment,redevelopment activities, scheduled debt maturities, and other capital requirements including scheduled debt maturities. We will, however, continue to assess and take further actions we believe are prudent to meet our objectives and capital requirements.
(1) As of June 30, 2026, these properties were classified as held for sale and were subsequently sold in July 2026.
At MarchJune 31,30, 2026, there was one completed operating property in lease uplease-up as follows:
Our condensed consolidated balance sheet at MarchJune 31,30, 2026 includes approximately $458.0$500.1 million related to properties under development and land. Of this amount, approximately $315.4$301.2 million related to our projects currently under construction. In addition, we had approximately $142.6$198.9 million primarily invested in land held for future development and land holdings, which included approximately $97.7$154.0 million related to land held for future development and $44.9 million invested in land which we may develop in the future.
Properties Under Construction. At MarchJune 31,30, 2026, we had three properties in various stages of construction as follows:
(1) Property in lease-up was 13% leased at July 29, 2026.
Development Pipeline Communities. At MarchJune 31,30, 2026, we had the following multifamily communities undergoing development activities:
Land Holdings. At MarchJune 31,30, 2026, we also had four undeveloped land tracts with a valuation of approximately $44.9 million.
Reconciliations of net income to NOI for the three and six months ended MarchJune 31,30, 2026 and 2025 are as follows:
Property NOI, as reconciled above, is detailed further into the following categories for the three and six months ended MarchJune 31,30, 2026 as compared to the same period in 2025:
(1) For 2026, same store communities are communities we wholly-owned and were stabilized since January 1, 2025, excluding communities under redevelopment and properties held for sale. Non-same store communities are stabilized communities not owned or stabilized since January 1, 2025, including communities under redevelopment and excluding properties held for sale. We define communities under redevelopment as communities with capital expenditures which improve a community's cash flow and competitive position through extensive unit, exterior building, common area, and amenity upgrades. Management believes same store information is beneficial as it allows both management and investors the ability to determine financial results over a particular period for the same set of communities. Development and lease-up communities are non-stabilized communities we have developed since January 1, 2025, excluding properties held for sale. Held-for-sale communities are communities and associated non-multifamily rental properties we wholly-owned and were stabilized since January 1, 2025, which met the held-for-sale criteria, but did not meet the criteria to be classified as discontinued operations. Dispositions/Other includes those communities disposed of or held for sale which are not classified as discontinued operations, non-multifamily rental properties,properties not classified as held for sale, expenses related to land holdings not under active development, and other miscellaneous revenues and expenses, including net above or below-market leases, casualty-related expenses net of recoveries, and severance related costs.
Same store property NOI decreased approximately $1.7$3.0 million and $4.8 million for the three and six months ended MarchJune 31,30, 20262026, respectively, as compared to the same periodperiods in 2025.
The $1.7 million decrease in same store property NOI for the three months ended March 31, 2026 was primarily due to an increase in same store property expenses of approximately $2.4 million, which exceeded the approximately $0.7 million increase in same store property revenues as compared to the same period in 2025.
The $0.7 million increase in same store property revenues during the three months ended March 31, 2026, as compared to the same period in 2025, was primarily due to an increase of approximately $1.2 million from our utility and ancillary income programs, partially offset by changes to occupancy of approximately $0.5 million.
The $2.4$3.0 million decrease in same store property NOI for the three months ended June 30, 2026 was primarily due to an increase in same store property expenses duringof theapproximately three$2.8 monthsmillion. endedThis March 31, 2026, as compared to the same period in 2025,increase was primarily due to higher salaries and benefits of approximately $0.9 million, increased utilities of approximately $0.7 million, and higher real estate taxes of approximately $0.9 million and increased salaries and benefits of approximately $0.8$0.7 million. The increase was also due to higher utilities of approximately $0.3 million, increased generalmarketing and administrativeleasing expense of approximately $0.3$0.4 million,million and higher insurance expense of approximately $0.2 million. The increase was partially offset by lower repair and maintenance expense of approximately $0.1 million.
The $4.8 million decrease in same store property NOI for the six months ended June 30, 2026 was primarily due to an increase in same store property expenses of approximately $4.6 million. This increase was primarily due to higher salaries and benefits of approximately $1.6 million, higher real estate taxes of approximately $1.4 million, and increased utilities of approximately $0.9 million. The increase was also due to higher marketing and leasing expense of approximately $0.6 million and increased general and administrative expense of approximately $0.3 million. These increases were partially offset by lower repair and maintenance expense of approximately $0.2 million.
Same store property revenues remained relatively unchanged for both periods, decreasing $0.2 million for each as compared to the same period in 2025, primarily due to lower rental rates, mostly offset by increases from our utility and ancillary income programs, changes to occupancy, and lower uncollectible revenues.
Property NOI from non-same store and development and lease-up communities increased approximately $5.3$5.7 million and $11.1 million for the three and six months ended MarchJune 31,30, 20262026, respectively, as compared to the same periodperiods in 2025.
The increaseincreases waswere related to higher NOI from our non-same store communities of approximately $4.6$4.7 million and $9.4 million for the three and six months ended MarchJune 31,30, 20262026, respectively, as compared to the same periodperiods in 2025. The increaseincreases waswere primarily due to the acquisition of four operating properties in 2025 and five operating properties in 2026, as well as the stabilization of three operating properties during 2025.
The increaseincreases waswere also related to higher NOI from our development and lease-up communities of $0.7$1.0 million and $1.7 million for the three and six months ended MarchJune 31,30, 20262026, respectively, as compared to the same periodperiods in 2025. The increaseincreases waswere due to the timing of lease-up for one operating property which completed construction during the third quarter of 2025.
The following table details the changes, described above, relating to non-same store and development and lease uplease-up NOI:
Held-for-Sale Analysis
Held-for-sale property NOI decreased approximately $0.1 million for the three months ended June 30, 2026 and increased $0.1 million for the six months ended June 30, 2026, as compared to the same periods in 2025. During the three months ended June 30, 2026, the $0.1 million decrease was primarily driven by approximately $0.8 million of higher expenses, mostly offset by an increase in revenues of $0.7 million. The increase in expenses was primarily due to higher utilities and repairs and maintenance expenses. The increase in revenues was primarily due to higher rental rates, an increase from our utilities and ancillary income programs, and changes to occupancy. During the six months ended June 30, 2026, the $0.1 million increase was primarily driven by approximately $1.5 million of higher revenues, primarily offset by $1.4 million of increased expenses. The increase in revenues was primarily due to the same factors above, and was primarily offset by higher salaries and benefits, repairs and maintenance, utilities, and other property operating expenses.
Dispositions/other property NOI decreased approximately $3.5 million and $9.6 million for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025. The decreases were comprised of lower NOI related to dispositions of approximately $6.9 million and $13.4 million for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025, due to the seven dispositions completed in 2025 and one disposition completed during the six months ended June 30, 2026. The decreases were partially offset by higher other property NOI of approximately $3.4 million and $3.8 million for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025. The increases were primarily due to higher casualty-related expense recoveries during the three and six months ended June 30, 2026 as compared to the same periods in 2025.
Dispositions/other property NOI decreased approximately $6.1 million for the three months ended March 31, 2026, as compared to the same period in 2025 primarily due to higher NOI related to seven dispositions completed in 2025, as compared to one disposition completed during the three months ended March 31, 2026.
Fee and asset management income from construction and development activities at our third-party construction projects decreasedincreased approximately $0.3$0.5 million and $0.2 million for the three and six months ended MarchJune 31,30, 20262026, respectively, as compared to the same periodperiods in 2025. The decreaseincreases in fees waswere primarily due to lowerhigher third-party construction activity as compared to the same periodperiods in 2025.
Interest and other income increased approximately $0.1 million and $0.3 million for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025, primarily attributable to higher interest income earned during 2026.
Our deferred compensation plans incurred a lossincome of approximately $1.2$12.6 million and $11.4 million during the three and six months ended MarchJune 31,30, 2026, comparedrespectively, to income ofand approximately $1.2$8.4 million and $9.5 million for the same periodperiods in 2025.2025, respectively. The changechanges waswere related to the performance of the investments held in deferred compensation plans for participants and was directly offset by the (benefit)/expense related to these plans, as discussed below.
Property management expense, which represents regional supervision and accounting costs related to property operations, increased approximately $0.4 million and $0.8 million for the three and six months ended MarchJune 31,30, 2026 as compared to the same periodperiods in 2025. The increaseincreases waswere primarily related to higher salaries, benefits, and incentive compensation costs. Property management expenseexpenses waswere approximately 2.6% and 2.4% of total property revenues for the three months ended June 30, 2026 and 2025, respectively, and were 2.6% and 2.5% of total property revenues for the threesix months ended MarchJune 31,30, 2026 and 2025, respectively.
Fee and asset management expenses from construction and development activities at our third-party projects increased approximately $1.2 million for each of the three and six months ended June 30, 2026, compared to the same periods in 2025, primarily due to increased third-party construction activity and higher other miscellaneous operating expenses.
General and administrative expense decreasedincreased approximately $2.2$3.4 million and $1.1 million during the three and six months ended MarchJune 31,30, 20262026, respectively, as compared to the same periodperiods in 2025. The decreaseincreases were primarily driven by higher acquisition pursuit costs, together with higher salaries, benefits, and incentive compensation costs, and higher rental expense. The increase for the six months ended 2026 was drivenpartially primarilyoffset by lower legal expenses,expenses dueresulting to legal recoveries offrom approximately $5.0 million of legal recoveries received during the three months ended March 31, 2026 related to a construction litigation matter. This decrease was partially offset by increases in salaries, benefits, and incentive compensation costs, as well as higher acquisition pursuit costs. General and administrative expenses were approximately 3.8%5.6% and 4.3%4.8% of total revenues for the three months ended MarchJune 31,30, 2026 and 2025, respectively, and were 4.7% and 4.5% of total revenues for the six months ended June 30, 2026 and 2025, respectively.
Interest expense increased approximately $3.6$6.0 million and $9.6 million for the three and six months ended MarchJune 31,30, 2026, as compared to the same periodperiods in 2025. The increase for the three months ended June 30, 2026 was primarily due to increases in interest expense relating to the issuance of $600 million of 4.90% senior unsecured notes in February 2026 and havingthe unsecured revolving credit facility due to higher average balancesoutstanding on our commercial paper program during the three months ended March 31, 2026.borrowings. These increases were partially offset by ahigher decrease incapitalized interest expense on our unsecured revolving credit facility due to lowerhaving higher average balances outstandingof assets under construction and lower interest rates, as well as lower variable ratevariable-rate interest expense on the $500 million senior unsecured notes, and slightly higher capitalized interest expense compared to the same period in 2025.notes.
The $9.6 million increase in interest expense for the six months ended June 30, 2026, was primarily due to higher interest expense related to the February 2026 issuance of the $600 million senior unsecured notes and having higher average borrowings under the commercial paper program. These increases were partially offset by lower variable-rate interest expense on the $500 million senior unsecured notes, higher capitalized interest due to having higher average balances of assets under construction, and lower interest expense on the unsecured revolving credit facility due to lower interest rates during 2026 as compared to the same period in 2025.
Depreciation and amortization expense increased approximately $0.7$5.0 million and $5.8 million for the three and six months ended MarchJune 31,30, 2026 as compared to the same periodperiods in 2025. The increaseincreases waswere primarily due to higher depreciation expense related to the acquisition of four operating properties induring January, February, May,2025 and Decemberfive 2025.operating Theproperties increaseduring was2026, as well as higher depreciation expense related to development properties placed in service during 2026. These increases were partially offset by lower depreciation expense relatedresulting tofrom the disposition of seven operating properties completed in 2025 and one operating property disposed of in February 2026.
Our deferred compensation plans recognized aan benefitexpense of approximately $1.2$12.6 million and $11.4 million for the three and six months ended MarchJune 31,30, 2026, asrespectively, compared to an expense ofand approximately $1.2$8.4 million and $9.5 million during the samethree periodand insix 2025.months ended June 30, 2025, respectively. The changechanges waswere related to the performance of the investments held in deferred compensation plans for participants and waswere directly offset by the (loss)/income related to these plans, as discussed in the non-property income section above.
Other non‑operating expenses increased by $59.1$57.4 million for the threesix months ended MarchJune 31,30, 2026, as compared to the same period in 2025. The increase was primarily attributable to higher legal expenses relatedassociated towith a $53.0 million pending legal settlement,settlement asrecognized wellduring asthe three months ended March 31, 2026, together with increased costs associated with other litigation matters. TheOn April 7, 2026, the Company entered into a binding term sheet forto settlement ofsettle a class action litigationlegal mattermatter, onand Aprilthe 7,parties subsequently executed a definitive long-form settlement agreement, which received the required preliminary court approvals during the three months ended June 30, 2026, as disclosed in Note 9. "Commitments and Contingencies" to the condensed consolidated financial statements. The increase during the threesix months ended MarchJune 31,30, 2026 also reflects a $4.9 million impairment charge related to technology investments resulting from the permanent decline in estimated market conditions.
The gain on sale of operating property, including land recognized during the threesix months ended MarchJune 31,30, 2026, was primarily related to a $67.9 million gain from the disposition of one operating property located in Irving, Texas. The $47.3 million gain on sale during the three and six months ended June 30, 2025 was due to the disposition of one operating property located in Houston, Texas in June 2025.
Income tax expense increased approximately $0.4 million for the threesix months ended MarchJune 31,30, 2026 as compared to the same period in 2025. The increase was primarily driven by higher state and franchise income tax expenses during the threesix months ended MarchJune 31,30, 2026 primarily due to tax refunds recognized in the same period in 2025 related to tax legislation changes enacted in certain state jurisdictions in 2024.
CPT insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 0 Form 4 filings and open-market sales in 1 filing (1 insider, 1 trade date, 30,000 shares, about $3.4M). Net open-market shares: -30,000 (purchases minus sales); net value about -$3.4M.Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
| Trade date | Insider | Transaction | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-07-02 | Necas Kevin J. Jr. |
Grant/award | 2,133 | — | — |
| 2026-06-05 | Campo Richard J |
Open-market sale | 30,000 | $112.42 | $3.4M |
| 2026-05-08 | Sevilla-Sacasa Frances Aldrich |
Grant/award | 2,507 | — | — |
| 2026-05-08 | Westbrook Kelvin R |
Grant/award | 2,507 | — | — |
| 2026-05-08 | Webster Steven A |
Grant/award | 1,350 | — | — |
| 2026-05-08 | Khator Renu |
Grant/award | 2,507 | — | — |
| 2026-05-08 | Ingraham Scott S |
Grant/award | 2,507 | — | — |
| 2026-05-08 | Gibson Mark |
Grant/award | 2,507 | — | — |
| 2026-05-08 | Brunner Heather J. |
Grant/award | 2,507 | — | — |
| 2026-05-08 | Benito Javier |
Grant/award | 2,507 | — | — |
Well-known investors holding CPT (13F)
| Investor | Quarter | Shares | Reported value | % of their 13F | Change vs prior quarter |
|---|---|---|---|---|---|
| Davis Selected Advisers (Chris Davis) | 2026-06-30 | 86,120 | $9.9M | 0.04% | Reduced 2% |