Camden Cuts 2026 Earnings Outlook After California Sale

The Tip Desk · November 6, 2026 · 3 min read

The multifamily REIT sold 11 California communities for about $1.6 billion, booked a $9.37-a-share gain, and lowered its 2026 EPS midpoint to $9.44.

Camden Property Trust (CPT) sold its California portfolio of 11 operating communities and 3,620 apartment homes on July 29, 2026, for an aggregate price of about $1.6 billion and recognized a gain of about $1.0 billion, or $9.37 a share, in the third quarter. The multifamily REIT used about $0.9 billion of proceeds to retire balances under its unsecured revolving credit facility and commercial paper program. Reported earnings were $8.71 a share, compared with $1.00 a year earlier, when the quarter included about $0.78 a share of gain on sale of operating properties.

The sale left the company with 168 properties and 56,995 apartment homes at quarter end, down from 174 properties and 59,416 homes a year earlier. Property revenues were $381.1 million for the three months ended September 30, 2026, versus $395.7 million a year earlier. Land-development impairments of $0.83 a share partially offset the California gain.

Same-property results, which exclude the California communities classified as held for sale, showed a sequential turn in net operating income. Same-property NOI rose 0.6% from the second quarter after a 1.3% sequential decline in that period. Same-property revenue was unchanged sequentially, and same-property expenses fell 1.0% sequentially after 4.3% sequential growth in the second quarter. Year-to-date same-property NOI growth was (0.7)%. Occupancy was 95.6%.

Leasing improved on a three-quarter path. Effective new lease rates were (2.0)% in the third quarter, after (3.3)% in the second quarter and (5.5)% in the first. Effective renewal rates were 3.6%. Effective blended lease rates turned positive at 1.0%, after (0.2)% in the second quarter and (1.6)% in the first.

Core FFO was $1.71 a share, up from $1.68 in the second quarter. FFO was $1.70 a share. Core AFFO was $1.42 a share.

The company updated 2026 earnings guidance after the California sale. The 2026 EPS midpoint was cut to $9.44 from $9.93, a $0.49 reduction. Expected EPS excludes gains, if any, from future real estate transactions. The 2026 FFO midpoint was raised to $6.15 from $6.12. Core FFO guidance was unchanged at a $6.75 midpoint. Same-property revenue guidance midpoint was cut to 0.00% from 0.50%, expense midpoint to 1.75% from 2.50%, and NOI midpoint to (1.00)% from (0.60)%. Fourth-quarter 2026 guidance is EPS of $0.12 to $0.16, FFO of $1.61 to $1.65, and Core FFO of $1.63 to $1.67.

Camden acquired Camden Brandon in Tampa, Camden LoSo in Charlotte, and Camden Gulch in Nashville for a combined $305.2 million, plus a Tampa land parcel for about $18.3 million. Construction began at Camden RTP in the Raleigh metro area, adding 398 homes and $130.0 million of estimated cost. Ongoing development rose to 1,560 homes and $618.0 million as of October 31, 2026, from 1,162 homes and $492.0 million at the end of the second quarter. Camden Village District, 369 homes, was 88% leased.

The company repurchased 474,660 shares for $50.0 million in the quarter, leaving $247.9 million remaining under its stock repurchase program. Liquidity was about $1.8 billion at September 30, including about $0.6 billion in cash and related accounts and about $1.2 billion of availability under the unsecured credit facility and commercial paper program. In October, Camden redeemed $500 million of senior unsecured notes due in November 2026 using cash on hand and commercial paper.