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Research Alert: CFRA Retains Hold Opinion On Shares Of Camden Property Trust

· 02/05/2021 06:05

11:00 AM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our target by $8 to $100, using forward P/FFO of 20x our 2021 FFO estimate versus multifamily REIT average at 22.0x and CPT's portfolio profile in lower rent Sun Belt markets. Given Covid-19 impact on rental rates, we lower our 2021 FFO estimate by $0.15 to $5.00 and introduce 2022's at $5.20, as CPT post Q4 2020 FFO of $1.21, a $0.04 miss to consensus. In January, new lease rates were down 3.1% and renewals up 3.0% Y/Y. We expect CPT's select larger markets to be a drag on 2021 FFO, as these areas are urban markets hurt by Covid-19. In Q4 2020, occupancy was 95.5% versus 96.2% Y/Y, and collected rent was 96.4% in January 2021, down from 98.6% in Q4 2020. Cash NOI was down 4.6%, with the weakest markets in Houston, down 18.7% (13.5% of total units), Los Angeles/ Orange County (-13.6%, 4.8%), Austin (-8.5%, 4.6%), and Dallas (-6.8%, 10.1%). Stable markets with net migration were Phoenix (+8.1%, 6.7%), and southeast FL (+0.9%, 4.5%), while Washington D.C. was slightly negative (-1.6%, 12.3%).