Camden Property Trust

good morning and welcome to camden property trust second quarter 2025 earnings conference call i'm kim callahan senior vice president of investor relations joining me today for our prepared remarks are rick campo camden's chairman and chief executive officer keith odin executive vice chairman and alex jessett president and chief financial officer we also have lori baker chief operating officer and Stanley Jones, Senior Vice President of Real Estate Investments, available for the Q&A portion of our call. Today's event is being webcast through the Investors section of our website at camdenliving.com, and a replay will be available shortly after the call ends. 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 2025 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 a follow-up question or 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. Today's on-hold music featured the Beach Boys as a tribute to co-founder Brian Wilson, who passed away in June. The Beach Boys' upbeat musical themes included Good Vibrations, Surfing USA, and Fun, Fun, Fun, all fit with Team Camden and our culture to a T, a T-per, that is. Good Vibrations continue for our Summer Belt markets, and we should be back to Fun, Fun, Fun next year. Second quarter apartment demand was one of the best in 25 years, following a strong first quarter. Apartment affordability continued to improve during the quarter with 31 months of wage growth exceeding rent growth. This expands affordability and increases apartment demand, creating new apartment customers. Camden's sector-leading resident rent to income ratio also continues to improve and are better than pre-COVID levels. The historic high cost of homeownership continues to support apartment demand and lower move outs to purchase homes. Resident retention has been strong across our markets as a direct result of the living excellence provided by our onsite teams who have achieved our highest customer sentiment score ever. Great job, Team Camden. All other apartment macro demand drivers, including the outsized population growth and job growth, remain intact for our markets. New additions to supply have peaked in our markets. New developments are leasing at a decent pace given the record demand. As projects continue to lease up to the balance of 2025, rental rates should burn by the beginning of 2026, leading to better than average rent growth. Witten Advisors projects better than 4% growth in Camden's markets in 2026, accelerating to 5% in 2027 and beyond. We look forward to getting back to a more normal market and growth profile after the excesses of the post-COVID supply environment end. Camden is positioned well with one of the strongest balance sheets in the industry with no major dilutive refinancings over the next couple of years. I want to give a big shout out to Team Camden for their steadfast commitment to improving the lives of our teammates, our customers, and our stakeholders, one experience at a time. Next up is Keith Oden.

Thanks, Rick. Operating conditions across our portfolio are still playing out as we expected. Rental rates for the second quarter had effective new leases down 2.1% and renewals up 3.7% for a blended rate of 0.7%. This was in line with our expectations for the quarter and reflected an 80 basis point improvement from the negative 1 tenth percent blended rate we reported in the first quarter of 2025 and a 60 basis point improvement from the 1 tenth percent reported in the second quarter of 2024. Our preliminary July results are also on track and showing improvement versus the second quarter of 2025. Occupancy for the second quarter averaged 95.6% versus 95.4% in the first quarter of 2025, and we expect occupancy to remain relatively stable in the mid-95% range for the remainder of the year. Renewal offers for August and September were sent out with an average increase of 3.6%. Turnover rates across our portfolio remain very low, with the second quarter of 25 annualized net turnover of only 39%, a testament to strong resident retention and satisfaction, along with continued low levels of move-outs for home purchases, which were 9.8% this quarter. I'll now turn the call over to Alex Jesset, Camden's President and Chief Financial Officer.