Camden Property Trust

Good morning and welcome to Camden Property Trust's second quarter 2023 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 slide presentations 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 second quarter 2023 earnings release is available in the Investors section of our website at camdenliving.com, and it includes reconciliations to non-GAAP financial measures, which will be discussed on this call. We would like to respect everyone's time and complete our call within one hour, so please limit your initial question to one, 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.

Good morning. Our on hold music theme for today was Happy Birthday. Last week, Camden's board and executive management team rang the closing bell of the New York Stock Exchange to celebrate Camden's 30th birthday as a public company. We were joined by the rest of Camden's 1,700 team members from coast to coast to commemorate this special day. It's been a remarkable journey, and we want to share a few memorable moments with you. So here we go with 30 years in 2 minutes and 30 seconds. Thank you. Our business was built to last. In 1993, we started with 6,000 apartments in three Texas markets with an enterprise value of $200 million. Today, we have 60,000 Sunbelt geographically and product diverse apartments with a value of $15.5 billion. Over the years, we have created a best-in-class operating and investment team platform that focuses on constant improvement. Camden exists today. to improve the lives of our team members, our customers, and our stakeholders one experience at a time. Our business continues to be strong. Market conditions continue to moderate from the post-COVID unprecedented housing boom that we all knew would happen. The transaction market is still quiet and with 70 percent decline from last year. New permits are starting to fall given the difficult financing environment and increased cost of capital. This should bode well for our markets as supply is absorbed over the next 18 months. Move outs to buy single-family homes to continue to trend lower than past years and quarters. And finally, I really want to give a big shout-out to our Camden teams for their hard work and their commitment to providing living excellence to our residents. Next up is Keith Oden.

Thanks, Rick. Now for some details on our second quarter 2023 operating results and July 2023 trends. Same property revenue growth for the quarter was in line with our expectations at 6.1%, and we have maintained the midpoint of our 2023 revenue guidance as a result. Consistent with the past several quarters, we saw the highest growth rates in our three Florida markets, Tampa, Orlando, and Southeast Florida, with very strong results in both Charlotte and Nashville as well. Despite the understandable concerns about elevated levels of supply in Camden Sunbelt markets, demand for high-quality apartments in our markets remained strong. Second quarter signed leases grew by a blended rate of 4.1%, with new leases up 2.2% and renewals up 5.9%. Our preliminary July results show moderating rates of growth with blended rates in the mid-3% range. Renewal offers for August and September were sent out in the high 5% range. Occupancy averaged 95.4% during the second quarter of 2023 and trended slightly higher in July at 95.6%. Our portfolio is currently 95.8% occupied, positioning us well for the normal seasonal slowing we typically see in the fourth quarter. Net turnover for the second quarter of 2023 was 44%, and move-outs to purchase homes were 11.8% for the quarter and 11% year-to-date, versus 15.1% in the second quarter of 2022 and 13.8% for the full year of 2022. I'll now turn the call over to Alex Jessett, Camden's Chief Financial Officer.