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Camden Property has projected full-year core funds from operations below analyst expectations due to declining new lease rates and modest revenue growth. The Texas-based REIT manages over 59,210 apartment homes nationwide. Fourth-quarter effective lease rates fell 5.3%, compared with a 4.7% drop a year earlier. The company expects 2026 core FFO between USD 6.60 and USD 6.90 per share, slightly below forecasts, and first-quarter FFO also under estimates. Despite these challenges, quarterly revenue rose 1.2%, and profit per share jumped to USD 1.44, showing some resilience.
Camden Property has projected that its full-year core funds from operations will come in below analysts estimates, reflecting ongoing pressure from declining new lease rates and modest property revenue growth. The Texas-based real estate investment trust, which manages over 59,210 apartment homes across the United States, indicated that effective new lease rates continued to slide in the fourth quarter, falling 5.3%, compared with a 4.7% drop in the same period last year. Advertisement
For 2026, Camden Property anticipates core funds from operations a key metric for REIT performance between USD 6.60 and USD 6.90 per share, lower than the USD 6.91 per share expected by analysts, according to LSEG data. The company also expects first-quarter core FFO in the range of USD 1.64 to USD 1.68 per share, falling short of analyst projections of USD 1.71 per share.
During the quarter ended December 31, Camden Property reported a core FFO of USD 1.76 per share, slightly higher than USD 1.73 per share a year earlier. Property revenue grew by around 1.2% to USD 390.79 million in the same period. Profit per share surged to USD 1.44, up from 37 cents in the previous year, reflecting some resilience despite the pressure on leasing rates.
Industry analysts note that REITs are facing a challenging environment in 2026, as sustained higher interest rates, softening demand in key property segments, and oversupply in areas such as the multifamily sector continue to weigh on operating performance. Camden Property's outlook underscores the broader difficulties in the U.S. residential real estate market, where rental growth is slowing amid macroeconomic pressures.
Source PTI
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