Camden Property Trust (CPT) 2 Aug 242024 Q2 Earnings call transcript

Good morning, and welcome to Camden Property Trust Second Quarter 2024 Earnings Conference Call. I'm Kim Callahan, Senior Vice President of Investor Relations.

Joining me today are Ric Campo, Camden's Chairman and Chief Executive Officer; Keith Oden, Executive Vice Chairman; and Alex Jessett, President and 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 e-mail upon request. note, is please recorded. And Instructions] this being event [Operator

them. our would prepared advise making Before performance beliefs. and on of our not I statements forward-looking expectations like differ the you are risks involve These based be found can uncertainties we to begin future in cause SEC, Further encourage expectations. our actual will could and remarks, from to guarantees review information and with we and be everyone to we risks results statements current that filings that materially about these

represent Any no current forward-looking statements supplement subsequent made on update to and today's these assumes call company because of management's events. the or statements opinions, obligation

please section Camden's As camdenliving.com, complete within reconciliations non-GAAP to it one call. at second to after complete a includes the so time to speak and if like discuss. queue able would call phone is this measures, to to are limit additional to rejoin items we happy everyone concludes. respect e-mail discussed reminder, If on questions Investors everyone's be then hour, our in and be have which question additional of We today, will financial earnings or you the with the the respond website XXXX to queue release quarter available call your initial we'd by in one, our

over Rick Campo. to call the turn I'll time, this At

The today theme waiting. Kim. Thanks, of music on-hold is

the buyers bad CFRs to levels. return Operations throw towels a are property relief the are anticipated towel are reach recent completions long to begin stakeholders to is multifamily months, go are in pre-pandemic During waiting seemed the for for pace something. in and sellers sale. start with Sellers as ] waiting in to [ and for and come view by tax down buyers expenses. and as to the peak buying of waiting waiting that interest teams Fed our on insurance multifamily for Transaction for to the to between meetings to in consensus end. debts standoff buyers are while waiting property a for rate cut for well multifamily the and teams first be the waiting everyone

While we the eventually, part. meantime, In timing will a that the hardest Tom us, the the waiting late certain are end waiting the is great Petty reminds as is debate.

are The We markets. about have quarter I'm we reprise to second XX-year last Yes, most the our from With comments of going markets of are supply behind spent in playing we for at talking time as expected. us, quarter since our a my most out the high rent our deliveries. Starts to the of yes, to are in just projected news apartment markets apartments our post-pandemic most XXXX. rate that limiting markets development And this are adjusting now. good to still over in interest fall is XXX,XXX frenzy. quickly growth low is

should which falling XXXX, point. deliveries in XX% and a in in XXXX XX% peak low supply would New be XX-year another XXXX,

Apartment strong. demand to continues be

demand to Camden affordability XX. apartment XXX,XXX XXXX. Camden has a matching apartment of and reported in and our XXX,XXX positive data main by Nine driven advisors net recent During be apartment half driver the exposure. population of people. that reported was demographic in year, loss employment Coast the cities bottom where apartments projects, is of The XXXX The XXX,XXX. by are XX cities major the markets household West most The apartment demand the trends. XXXX-XXXX growth, census and These increased limited XXX,XXX were range. top and top cities population With East XX demand over on the the formation XXXX first

pre-pandemic flat. greater in rents been over are markets to markets struggle. levels. to pay relatively had continues Ten continues of job Apartment while apartments. Los robust been growth the affordability of improve been except have have has on as has resident growth Consumers our wage XX% take which less our growth X%, the spending Employment for all Angeles, to compared than of

pay rates residents move-outs a income and of their of prices out XX% near to have residents lows, kept rents. home Mortgage towards rising homes historic second the Camden moved Camden to New in home XX.X% buy buy quarter.

XX Ballantyne Charlotte homes overall apartment beginning supporting concerns the an environment on leasing be Apartments XXXX of of demand is This should current take anytime advantage economy I our drivers. located trends take should Charlotte, be To North set now want a in their larger to to providing these we and work is high despite do. household soon. believe and their residents, beyond, XXX given team more for a home Blakeney, accelerating age growth a continues South Demographic demand and under. shoutout Camden to change commitment excellence in will trajectory. give robust they multifamily which groups, suburban The adults today in living and big cost the the up to we XX% our hard XXXX, young Carolina. are XXXX submarket members construction what of monthly supply starting Camden to Camden to sufficient a and propensity rent to formations going be apartment. to owning demand about not assuming than XXXX tailwind, a share continue rent including of for leasing that

Keith Oden up next. Thanks.

conditions expected. Thanks, portfolio generally we out across our as Ric. Operating are playing

quarter primarily performance due and exceeded quarter's to discussed our Our bit we costs forecast, taxes, which lower continued last property same-property insurance on a second XXXX call.

and X.X% D.C. quarter eight-tenths Nashville Inland renewals percent with Houston Denver, of above our rates Rental second growth down signed a respectively, revenue most Florida, and approximately growth the posting revenue with for challenged for to blended an rate all positive of Our of and markets declines and occupancy up leases portfolio X.X% were the X%, top our X.X% of average a for XX.X%. from for revenue ranging X% Southeast X.X% Diego, for markets Washington, same County, of San quarter. Austin showed Metro, L.A./Orange Empire, quarter. and the X.X% average property remain

our growth of Renewal with occupancy to September rates finally, average moving indicate rate to turnover And for the turnover in Preliminary better across buy homes. an out results XX.X%. fewer remained residents quarter by X.X%. and XX% compared very out with for July increase quarter sent the were Net of August levels XXXX. XX% averaging of slightly portfolio XX% low second for driven of was second offers

call over Alex I'll Camden's President Financial and Officer. now Jessett, the turn Chief to

Thanks, Keith.

results activity. on financial Before real I estate and our move recent guidance, brief to on our update a

a located submarket in the we and on single-family XXX Texas, the million Blakeney, community Charlotte, XXX on Charlotte. located quarter second the X-storey construction garden-style and of $XXX Ballantyne completed development style Camden South rental $XXX $XX in unit, of XXX-unit, During XXXX, million, unit, garden new both new began Woodlands, a X-storey a million, construction Woodmill we development, Camden Creek, Camden

financial our Turning to results.

received insurance property expense timing For $X.XX in of third resulting expense expected this prior refunds lower as core FFO tax large half This quarter. taxes. quarterly were property Approximately quarter, per the midpoint and the guidance. in ahead we part of outperformance actually driven second by we operating related quarter outperformance $X.XX per $X.XX was from in lower our reported share, was share of second expenses lower-than-anticipated the of core the and

the debt management $X.XX share bad higher the interest Property third-party for and our savings including and of by income we quarter, and fee had in from our cash business during asset Additionally, expense fee income and second construction income revenues with per from our higher driven and other in cost line combination additional quarter, interest expectations. balances. were the

of our midpoint X.X%. year we Last full guidance at the night, maintained revenue

to prior guidance per Insurance amount our also our be in previously expenses We represents anticipate of be year-over-year. X.X% flat of and the X.XX%, X.XX% operating $X.XX savings and second full lowered by was guidance, taxes. entire from assumption occurring the or driven year to X% the it share of to insurance approximately property lower-than-anticipated now with anticipated our the quarter. continued favorable expense We down to primarily

in property now XX we up approximately Texas taxes assessments favorability represent taking the will effect increase the $X.XX forecast. Property into Although, our XX% assuming decreases and XXXX quarter we expenses, from insurance that growth lower midpoint our we hope basis on higher lower which continues, taxes, year-over-year. of of be second total our of claims approximately not to approximately per in NOI projected anticipating previously same-store the it points increased have Based trend X%, to a are were property will guidance share. After basis refunds, X.X% are core operating we of expenses, XX points.

We which midpoint our is $X.XX the in year $X.XX FFO higher is insurance lower core lower from from the latter share year is same-store quarter was spread of the are or from dispositions and not a $X.XX, net $X.XX increasing our management $XXX in $X.XX of the from and midpoint full second the $X.XX At are is offset part to also anticipated $X.XX communities. million anticipated by no lower additional assuming property the development with we repeated of second to of an million still and quarter, other on our is the dilution and these accretion guidance from range, taxes from $XXX per the in fee increase to of anticipated related transactions. increase. which throughout NOI, costs matching non-same-store income interest acquisitions, and asset taxes. core $X.XX the be our from non-timing of

totaled $XXX year in starts. with our end any initial million, not guidance, XXXX further the development of anticipating and for line Our the are full we starts top year

XXXX We have approximately $XX million of spend. development remaining

for We also third guidance of earnings provided quarter XXXX. the

quarter the same-store and additional from $X.XX by decline to $X.XX the property is $X.XX the tax due costs. midpoint season, quarter sequential and public third the and per overhead decline nonrecurring core through partially in refunds lower FFO timing taxes from as management due primarily a of with in compensation expenses we sequential associated certain increase expenses within a the share the approximate sequential our expenses and decrease revenue expect property in per $X.XX partially in maintenance an a fee continue of and other share offset to primarily We net to the by operating core of and utility per per expenses, third repair cumulative leasing same-store outperformance. This the to offset resulting a company and share $X.XX, share range a in peak increase second second resulting interest $X.XX at per components quarter be of and representing for the decrease $X.XX reduction sequential interest income seasonality asset $X.XX share FFO in and in quarter

of our debt approximately rate. As is fixed today, of XX%

maturities next to left million XX fund our We have of no pipeline. $X.X over amounts only our than outstanding under months facility, billion development $XXX $XXX less credit on the million and existing

time, this At remains strong open up sheet incredibly we'll to debt balance EBITDA X.Xx. net Our questions. the with call at to

[Operator our Brad question Heffern from first today Capital Instructions] RBC comes from And Markets.

July like you seems some month demand Was it strong Can It way what or just talk attribute were you you to for would on aggressive of impact that there based was for else in Did that a get about that anything out? call you to? you your comp you'd a more seeing? sort really peers. the wasn't that like

have we a July good the month. only we where marketing support is increased have kind of from done just sort was traffic -- the counts of sure make them Yes, be. And to XX,XXX-foot that that level, our to we thing the our need remained that

has the our year But has strength had now, where X and they we think Washington, portfolio. in last Houston Metro really spend in they're although additional impactful largest been marketing. you in for of a portfolio. us D.C. been markets bit so, and that and or overall, Right lagged the our the are So about leading portfolio they've little our if

those Metro year, D.C. the having enough So good a of this and the we're in year a didn't strength anticipated X as our which anticipate it's year we portfolio. we certainly to some move what markets, as good on needle in

and saw consumers out the last of year July the of It in the running I was seasonality year. if that and moved the of August, and is mean, they their seasonality, equation we quicker. by sort was out I you other money, caused year, think, about last earlier part July pandemic -- think --

August. the year, money prior a been of was in they out their time, had COVID fourth and driven This of we've it and and that so while, think a COVID it the people not And July sort primarily long probably, are that. just gone has money moving about third don't anymore. the by weakest one for for if the of more we in and you have because had partners fill was year, quarter to probably that setup And

robust So continue with continues to really market because with though going costs interest but up. even we in of markets. associated home expected, -- single-family strong to print market from growth, and prices be was home and take share And weak the job our the today rates

up high power. the So just peak demand pricing just little teams pretty gave And for job market. bit a great it I did our occupancy sets us It a through a leasing good more season. think building

question next from KeyBanc Austin Capital Our comes Markets. from Wurschmidt

curious acceleration you we So of employment the household formation environment? strong on market, And in saw the we employment prepared and power just growth a historic on that seen year curious, thoughts remarks, your maybe see if a versus late. employment and continued of last the touched as back slowdown what slowdown are getting a pricing kind rent and near-record some driver of this And more in with coincided in impacts we've market growth in gains Ric, how just to your reports do that slowdown early the year, how absorption. that's

Sure.

think the if clearly about high as you of thing interest part I think our equation. good the because thing dynamics affect slowdown rates and that business, the a is good one a

sort I for comment, sticking a landing, going And market. growth think economy the of the seem be with slower Olympic an with job to gold. speak, good I'm to so Fed's So slower or the maybe they

And that with take You to family. when up single the the to share perspective good to they're where unemployment job growth print the went still our news saw migration enough -- continue household jobs slowing, enough markets are. And morning. even there's from from this the our still and in are rate is about X.X% the formation from market

a stick key you that having what stick end Fed Obviously, crashing XXXX, job is doesn't going -- with we and not bets up the the then think We if the happens Fed if have landing. to is in landing to happen so are then. recession growth with the And reasonable going said, on what's all to and off is economy.

moderate is have the market. employment to the that to where best, in going is be growth in and employment You're our happens going growth employment growth markets which

be the where are, and headroom So that to long-term growth like really good good I us we cutting would our pretty business. feel be about I which to for some the employment able slower gives start idea rates,

Jamie Fargo. question next Our from Wells comes Feldman from

Great.

new can in about to seems you comment your in So more be a more about the talk 'XX for rest not that? year, window good of starting mean, the just any to be developments I it delivering. 'XX, going like really there's

be how thinking bigger you as then comment? So it think more we could you that to are maybe about 'XX, And talk about a year? think ahead development --

delayed starts. were We shovel-readies development our them. we prepared. were had These So really and

properties think those started we start. that have to the so positioned that And can and I who ahead other deals And went the X we we They'll who we part announced. now be financing shovel-ready pipeline and the other and year. hard helping land likely can't that And to developers start Charlotte starts. expand able end get we'll between by to they're decent out that the It's with. in get we pipeline also just to XXXX be willing a of have have

with to XX% up. year, industry equity capital. an were development, Even business capital is pipeline. like looks for new and our largest And to -- get debt perspective, our private the if and apartment debt able amazing still multifamily we history mean, we've always and provider pretty this, not of in it's this still though development been look the ramp XXXX moving XXXX, cycles developers up at can't you you I down chatting the equity their from and

pretty time, same sellers the be next and really up same the their early the who listings will recapitalize it group and fall it who out transaction a robust like interest year-over-year, their up to At year. acquisitions and are there in are said coming market the that in or XX% need looks builders, in merchant DOBs

for So be sort we in will little sure. development more the bit clouds active a when of clear more,

from Capital from Kim comes question next Our BMO John Markets.

half to year. wanted in the your that blended views you're ask know sending on I I lease of second Keith, mentioned renewals at out the growth you X.X%. about

where where would just and you you think us leases those If the you think also remind typically you lease at could new go? rates sign for new

Yes.

our So renewals of points out. what XX we are basis average generally within the of send

just X%. new the the lease above So numbers? turns X.X% -- little something on into a probably Alex,

John. Yes, absolutely. Yes,

third the blended exactly assuming well. what the quarter as we're and quarter by we blended And for about the that's X.X%. So thought about X.X%, way, quarter, last fourth

Mitchell Connor Our comes from next Piper from question Sandler.

nice a quarter You the year-over-year. debt guys pretty saw second in bad in improvement

wondering you the Just the what if guys of the trending rest provide for this debt about and And insights then if bad in side in on markets of you're year? maybe other causing how certain some July slipping the any thinking what be with in and could anything seeing markets? are might you are improvements,

Yes, absolutely.

is second debt just had basis getting July. now. the We was What out points. control closed under really XX bad in So we about quarter

improvement So with little XX the they're bit right rest we early the be it's expectations is that needed for line but seeing to have is And at them. basis going where think which July year, us a of we're to where for points. numbers, our to in we the our biggest see

bad California in X.X% instance, X.X% it debt. the quarter, in debt; the for was second first quarter bad So was

that in quarter was as focused is those and on X.X%. that quite which first was with market now X.X% we're a So one the bit, -- obviously Atlanta,

pretty we And level, do which to is that points. to the to problematic think under us us bit that for a basis XX being for were little back normal So getting about we're getting control. get close markets a starting are

BOA. from Dennerlein Josh from Next question comes

Josh. on for is This Steven

is turnover. question the my So on

So correctly, from like the if July looks from I there's at bit a XQ look to it little number -- July. pickup

that, you have the So I on turnover? color wonder if on any

see turnover So increase in third an we'll quarter. always in the

very that's typical. So

the is our improvement I was thing XXXX that think XXXX XX%. a number that July basis turnover And is number be XX%. focusing July turnover I'd year-over-year. XXX point more on our That's

than we So now. lot a quarter, see it's although trending turnover the right higher better in do typically third typical

from Our next from Stevenson comes Janney. question Rob

start yield been those labor What's what And projects? have expected material Charlotte on you costs stabilized the you current terms development X the as seeing in pipeline? of

Sure.

Xs Charlotte the X% the of IRs general yields suburban -- pipeline, range. And couple in deals we're the more Phoenix at X% are of like are the So in been the of the in with pipeline coming you the costs we terms our some last in development deals example. development to the urban going not projects were come having and for Xs. slowly. X in very, are areas the if years look then the in X% news But in maybe actually costs, ago. high and is the mid-Xs like month inflation very X.X Plumber down, good years but in a have costs And have down

much And no were happens But the financial subcontractor seen for compression. prices see year food people we've dramatically the margin. to construction next that. is interesting will because see substantially will construction that, crisis, fall, back were this people generally, peak I falls was that starts when drop and fall really time. just -- working be we after the cost and There And that in margins It compress. year like year at don't you if go think that to and we what starts as

and there prices, a global commodity on. this development that's on to the you are come steel, the is to that with other not about by just when know other bill some infrastructure bipartisan going driven don't those of happen going and aren't I And that's concrete the with market, so in likely government infrastructure, of lot those time products multifamily, because spend and going down. think going

way animal you tightens, really, it's going come crater did it margins down will is see say the labor today. prices the much come because and that to labor during It's the to So if labor. have hard And as compared the think landing, builders down financial -- market how and to we economy does I not have for will we still whole that crisis the decent a what was hit different be if today. and Fed a a it

able any What Are relief land any about to are these costs? going rate at and see get to there office or buy a to bulldozed converted? sites starting terms you in cheaper of being that of

fast Land because past as of What to drop thing land to people because think is tend sellers you the unwilling think sellers just existing their -- -- an be interesting prices, development who positioning it debt we've can't be, development generally start and it the multifamily in markets move as the would I are have you the like developers equity same. doesn't where opportunity allow they have and the cycles is seen land and today. can that because been who won't start this the the own to

perhaps end taking then soft is. the they the they so what beginning was and that's write and sort And off where worth for opportunity costs of up they generally land their it -- sell

I But of market the sellers definitely capital because are cost that today the and coming construction of not down. different costs understanding rise is think

tend and on will the get the buying and deals to think. these both be their deals do that land prices financed. I think can't land there make side from be than you But opportunities stickier would developers So

from from comes Evercore ISI. next Our question Steve Sakwa

I guess of I where on get to penciling? look basis, out wanted a do color do the I extent you you see are those What then around untrended development or rents, stabilized Ric, X assume, yields just bit you you a more little and heading? kind that trend to on the starts.

at yields, trended then generally conservative the in trended. we look of Sure. you Xs. at and look look and we in sort Xs at in pretty both. untrended We the high are they're when And the look our do we yields, untrended mid also yields, they and when at then trended We are

business your at in placement look positive you -- stabilized the long-term IRRs long as has yields, accretion term long -- capital. going to weighted -- yields the and we average or in long-term also for mainly you of because spread this that cost go, want that's you we're that and think want but capital are term, I the those a

with them IRR of X, or said, low other perspective. mid we're and is X that So is an one in one the Xs higher low high from and

look way But like I market it. the there that's those So substantial the at think is because what XXXX yields in in we and looks just upside of XXXX.

If economy get a new you reasonable better you market, growth. no to have and the normal coming rent than should supply

than If you look at today is like in have -- X the cycles, X.X long-term have to our during uptick rent which long-term a growth for from of and X%. you our better get we're business, 'XX. is it's site if a And and market growth revenue be today, years, those whole -- today, 'XX roughly the would what to lot in a little to you average over -- but X

So amount I developments think there's this of start a today. fair you in upside

from comes Wolfe from Our Citi. next Eric question

sending you're out where today. You mentioned renewals

indicators, you on what or came X down I based was you the June expect coming level? at do both it YieldStar seeing curious seasonally? the this up you're in occupancy with it it to start would looks like Because high stay think So and other and July, will

Yes.

maximizing literally to all But we're have adjustments in above to being making that occupancy, the and it's a that I it flat. the revenues. sure And the have any back now. XX%. to I and department deal daily XX.X% something Maybe basically rate that to and make revenue fourth bit our power maintain professionals it's able think trade-off occupancy our between at down comes year, probably key rents management but -- half we're or in think quarter, push at the in is So at pricing with we of little the to that

we bit started bit But with the it comfortable below XX.X%. end up cause regard now year to the at leasing of We've with year the probably guidance. our forecast a our little will little between drift I'm and to actually season. a ticked So pretty XX.X%. peak during Seasonality

Morgan from Stanley. Adam question from Our comes next Kramer

Great.

can know in to interested the across or of the the wanted maybe particular, does be today, loss where if few And Just lease even portfolio to of hear? markets, a gain kind you give stand? to to lease

Yes.

a would are loss around spread upon based right growth is it's So the now, they that had obviously, the imagine, And we've lease we in X%. markets, year-to-date. to revenue as right and you across position that would be so

Diego and markets about got loss to lease, has we've in to got obviously, a And larger like much so San and think leases Nashville Austin. or a gain D.C.

Our next question comes from UBS. Michael Goldsmith from

This Probandt. is Ami

Some of is like reaching market might maybe and the category. supply be they seemed this higher a in Phoenix bottom

seeing you markets? of bottom the Or this reaching we are are happening? potentially any signs some So of these in

Yes.

when of of level are So of the that the going historic markets fight terms game look clearly, happened. don't that and deliveries middle mean, despite markets, mid-XXXX still peak of we're the we going kind do kicking supply whether And look worse the whole rate versus markets, over because news in near we're at the news forward and historical absorption. City lots just in to seem I anywhere you I robust, migration pretty challenge -- based Xth the it's math growth kind but jump new growing historic The probably a and just It's we're moving it the the me into in would people -- of have created sense. around the and we're broader of been supply where here, on apartments. if to new the those also markets of to a of that the growth, performance don't domestic you remained both the into end And I into at oversupply. because know, the good think Austin the that if is amount of and in lot around in grind off but like that's of levels supply, there's kicking Austin, in still jobs been our we're migration we're are of probably But markets being you I bottom Xth Nashville kind numbers net jobs either monthly still of for make just bode completions still printed markets. in but -- absorption, in still the inning those don't But at -- that like context leasing of still through, and of not employment or Nashville bottom, these in inning I good page the don't continue it -- is game, of job rental the Austin, to standards, still baseball we're hasn't the XXXX. think around by to are the and changer. -- know much drift terms the those

Anderson next question our Rich from And comes from Wedbush.

you bought stock $XX in the quarter during range. back So

balance stock from What like is consensus But believe don't under $XXX that something if you raising are equity are thoughts to same curious it, start I that. sort reversing it. thought now significance balance play and time? Just about XXX-ish. some scenario equity what an capital comes along point, particularly what a the the your you of and you is, -- know could you wonder -- protect And Your would NAV if not at all needs at your sheet or of set course there. thinking -- about I having something get what at your you standpoint,

and we on how we are focused that. the we where Well, do best fund make can clearly returns

the just tell in just and the while $XXX stocks $XXX below are -- ago will I -- it today, was course, so And the little a of that. you but last it's

allocation, improves acquire think it's of that of don't strategic and But -- part that way fund using portfolio, of quality to So our that strong, about an accretive the can and I I it capital a done and thing keeping could if our equity interesting do. think that it say would way. that balance I'm debt be we the our sheet portfolio basis, sure be on plan then to and a our would we

portfolios We haven't that. found like

where equity. an it transaction very I And all works, of think the the market that the to that months. math give over think the is be significantly. out if us that And I XX -- I'm acquisition including capital robust game use then today should next sources opportunity in you'll play works to sure going

What an that or do consensus the think on as about number? you NAV Any estimate? thoughts the $XXX

low $XXX, at came and at said [indiscernible], of CFO was transaction, a KKR that's cap an rate it I X. implied think out Camden for Well, the

rates So are and winter going of Xs. that in are most off low cap transactions the today today the

to think there's to a the where I of down the have maybe be public the are right of markets market So are the that rates the between is slow to real And now bring XXXX. flood ultimately, to today. going and market cap end and come properties that public to markets

could argue rates so that go cap because And higher you there that. of -- could stay or higher

capital taking But evidenced out massive of dollars a on hand, portfolio. a KKR there wall billion couple of there's acquiring Aimco the Blackstone Cutera of by the other out and

the middle be to So we'll today, back get see, -- at right? come Street the back one -- way and It's if rates where way the -- low. middle if pendulum would tends the the $XXX -- to to cap -- to Wall going of are tends versus trading you're other you least moves Street

from next [Indiscernible] [Operator from question Instructions] comes Baird. Our

you provide year? and some Can on insight half to expect D.C. second Houston you the of the how in perform

Yes.

to Houston are going top. continue think the to and I be in D.C.

California headquarters I corporate end was live -- be Chairman are of real D.C. do continues their in They've expected are the Houston their announcement think year. weren't that the growth. we portfolio Chairman is XX been end and move think today. in yet Houston Houston. of to really either or year I from this years up is by Vice robust where morning, our I to -- X to terms an This to for Chevron saw X move clearly, going to to going they and actually going moved to saying it finally from just

it's So not in away a Houston's of anytime scheme is going thing soon. of not Houston capital but I X,XXX really and view, about probably think energy overall the sends it jobs, a the message the that's world important that huge employment has

to I get the -- term. it's think to going near only stronger continue to be in

a on doing have constructive on great good right going of I'm are really got what we with here. would would opportunity. clearly, occupancy Metro teams is taking a So And is very be. thought better Houston And momentum, that now they've it the great year what's our and of and than really having advantage job D.C.

positive of and markets, those think on end now between I I'm very the So both the year.

Keith I that the also it's world, but the of capital transition mentioned Houston to add of capital energy would the the energy world.

energy If And -- a transition. into lot investing and you hydrogen I a Houston. there and companies in these mean, look hub are major technology that is $X to at all the was billion government dollars the energy, spend clean roughly granted on

about ultimately, oil to and it warming traditional who and And thing to whole and -- and includes transition transition that's into have And oil interesting ones that but gas you how -- green, a plan plan gas have that a global and and to are change, fuels. the the people. gas transition works going companies for hydrogen get oil other include the has really understand to transition the energy debate how about

as both is So of transition. I think long to to term, well a going traditional energy continue result Houston do and

Our next from Segall Green David Street. from question comes

talk was about the if untrended feel low for assets if comfortable spread could an considering the range X starts, I how Charlotte below you yields on citing X untrended I that development you trading basis? those and were recent heard curious starts, about the the on correctly, in

Sure.

capital a So where acquisitions, development. cost yields, of dangerous because but in from use is in if always then going XXX we where want long-term start spread it we you is that going and perspective, at The the can XX get important, opinion, developments. you basis my XX and we in is your look we for key. our you with of from capital yields won that as On to long-term finish benchmark, cost points

we long the over so created our years. term, billions value to development, program of Camden through creation at And of dollars development value

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or in And think of great business, million long-term play it so debt long the simple in and business amount really construction to they where development, stick made suburban, well. development my our those to to -- that acquisitions suburbs, for allocate great makes time. construction along, But long the are no we transactions, sense long-term and that's a of created value $XXX offense over we've in the come it's a most a in as capital most that time, game a folks, the we'll they but period and

we way the that's So about it. think

next ISI. Steve from is Our question Sakwa follow-up from a Evercore

Great. Yes.

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Yes.

to most that So seem the I'll the have items first. hit variability

taxes, So My X%. property which a returned normal about is, level, having fantastic we to if move a obviously, more in you year think XXXX. gut we we're as about on, is

really of pendulum If a think you that insurance, about a case swung. insurance was

we If when up X%. the to you and was this is we this a be was business year, XX%, great XX%. And going insurance think thought now, still Right last remember it's now insurance year, down providers. up going we started insurance be to for our

renewal our how more did low. simple this business. find rates more of have that can to And business trying spoke we the insurance provider of every out that the can this to And was they is they to when last get way keep we

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think I shape. So we're in good pretty

Our from [Operator next UBS. from Instructions] question Goldsmith Michael comes

out the the the how impact are third factored we we as should Ami modeling the that How into about me, from line. guide? quarter? one quick hurricane on think And is Another

Yes.

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from from comes Markets. question BMO Capital next John our Kim And

wanted the back on year. of I blended follow to assumptions the the for up lease half

basis blended So in easier accelerate the are you signed factors? guess, that to, Or of other there second July, on the year-over-year I that expecting or improve at comps? you're Is yet year. in half XX points, based

absolutely. No,

about our that So easier a you is have effective. of comps, think component but to

July for is effective X.X%. up our So

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I June, in signed was you what May confirm it think X%? you Can

have do not you yes, that. get back we'll right I in the me, front but on to June number of

the ladies gentlemen, And like showing turn I'd questions, closing floor no and I'm any remarks. Rick to over Campo to for additional back

and And native the red, Very know and the you to people Simone by to everybody the give one well. I out is Biles, want the and sure to going that a great I shout call want Thank questions support report being U.S. being this shirts today. who to history. white Houston their had last of a and answered. the to call in make made on for blue probably yesterday [indiscernible] most recognize I have we the decorated gymnast history probably

So you with the the let we'll that, the rest of of day enjoy and Olympics. rest your

take and Bye-bye. So care thanks.

do We with thank conclude and today's we'll conference gentlemen, joining. for that, and And ladies call you presentation.

your may You disconnect now lines.