Camden Property Trust

Good morning and welcome to Camden Property Trust's first quarter 2022 earnings conference call. I'm Kim Callahan, Senior Vice President of Investor Relations. Joining me today are Rick Campo, Camden's Chairman and Chief Executive Officer, Keith Oden, Executive Vice Chairman and President, and Alex Jessett, Chief Financial Officer. Today's event is being webcast through the Investors section of our website at camdenliving.com, and a replay will be available this afternoon. We will have a slide presentation in conjunction with our prepared remarks, and those slides will also be available on our website later today or by email upon request. If you are joining us by phone and need assistance during the call, please signal a conference specialist by pressing the star key followed by zero. All participants will be in listen-only mode during the presentation with an opportunity to ask questions afterward. And please note, this event is being recorded. Before we begin our prepared remarks, I would like to advise everyone that we will be making forward-looking statements based on our current expectations and beliefs. These statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from expectations. Further information about these risks can be found in our filings with the SEC, and we encourage you to review them. Any forward-looking statements made on today's call represent management's current opinions, and the company assumes no obligation to update or supplement these statements because of subsequent events. As a reminder, Camden's complete first quarter 2022 earnings release is available in the investor section of our website at camdenliving.com, and it includes reconciliations to non-GAAP financial measures, which will be discussed on this call. We hope to complete our call within one hour, and we ask that you limit your questions to two, then rejoin the queue if you have additional items to discuss. If we are unable to speak with everyone in the queue today, we'd be happy to respond to additional questions by phone or email after the call concludes. At this time, I'll turn the call over to Rick Campo.

Thanks, Kim. The theme for our music today was Fools, as in April Fools. Since our IPO 29 years ago, April 1st 2022 was one of the most consequential days in Camden's history. The day began with Kim Callahan telling us that Camden was being included in the S&P 500. At first, we just assumed Kim was attempting one of the lamest April Fool's jokes in history, but Kim has never been a big jokester. Later that same day, we closed on our largest acquisition since the Summit merger in 2005 with the purchase of Texas Teachers Partnership Interest in 22 Camden Communities with a gross valuation of $2.1 billion. And finally, April 1st was the day that Camden completed the implementation of our Work Reimagined initiative, a comprehensive restructuring of how we staff, manage, and support our Camden communities. Alex will provide more details on this initiative in his comments. Any one of these events would have been a big deal for Camden. The fact that all three happened on April Fool's Day was extraordinary, and that's no joke. I want to give a big shout out to our teams in the field for continuing to outperform our competitors while improving the lives of our team members and our customers, one experience at a time. I'd also like to give a big shout out to our real estate investments, finance, legal, and asset management groups, along with our accounting group, for their amazing work in completion of the acquisition and the permanent financing for the Texas Teachers Transaction. Truly a team effort. Keith is up next. Thanks.

Thanks, Rick. Now a few details on our first quarter 2022 operating results and April trends. Same property revenue growth exceeded our expectations at 11.1%, the best quarterly growth in our company's history. Twelve of our 14 markets posted double-digit revenue growth in the quarter, with Tampa, Phoenix, and Southeast Florida showing the strongest results. Given this outperformance and an improved outlook for the remainder of the year, we have increased our 2022 full-year revenue growth projection from 8.75% to 10.25% at the midpoint of our guidance range. Rental rates for the first quarter had signed new leases up 15.8%, renewals up 13.2%, for a blended rate of 14.4%. Our preliminary April results are also trending at 14.4% for blended growth, with new leases at 14.7% and renewals at 14.1%. Renewal offers for May and June were sent out at an average increase of 14.4%. Occupancy averaged 97.1% during the first quarter of 2022, which matched our performance last quarter and compared to 95.9% in the first quarter of 2021. April 2022 occupancy is trending at 96.9% to date. Net turnover for the first quarter of 2022 was 36% versus 35% last year, and move-outs to purchase homes dropped to 14.1% for the quarter versus 15.8% last quarter, in line with normal seasonal patterns we typically see from 4Q to 1Q of each year. Move-outs to purchase homes remain well below normal for our portfolio. Finally, I want to acknowledge all of Team Camden for recently being named to Fortune's list of 100 best companies to work for. This year marks our 15th consecutive year on this prestigious list. Camden is one of only five companies included in the S&P 500 and also named to Fortune's list for the last 15 years. Rarified error indeed. Next up is Alex Jesset, Camden's Chief Financial Officer.