Camden Property forecasts 2024 funds from operation below expectations
Feb 1 (Reuters) - Camden Property Trust forecast annual funds from operation (FFO) below Wall Street estimates on Thursday, in a sign rental growth rates remain subdued in key markets such as Austin, Atlanta and Charlotte due to high supply.
Rental supply across the United States remains elevated, with about 16% of Camden's portfolio in markets where it is outstripping demand, pushing rental growth rates down.
The company expects 2024 FFO, a key measure of performance of a REIT, to be in the range of $6.54-$6.84 per share, the midpoint of which is lower than analysts' average estimate of $6.82, according to LSEG data.
The fourth quarter is also usually seen as the slowest seasonally, with new lease rents, which are offered to tenants moving in, often turning negative at times when supply is elevated.
Camden reported FFO, a key measure of performance of a REIT, of $1.72 per share in the quarter ended Dec. 31, in line with expectations.
New lease rates were down 3.8%, while renewal rates — offered to tenants renewing their leases — declined to 3.6% from 7.1% from a year ago. (Reporting by Ananta Agarwal and Nathan Gomes in Bengaluru; Editing by Shilpi Majumdar)
