Camden Property Trust (CPT) Financials

Camden Property Trust (NYSE: CPT) has demonstrated steady operational performance and financial stability over the last several years through Q1 2025. Here's a summary of the most relevant trends and key financial figures observed from its quarterly statements:

• Consistent Net Income Growth: The company showed a notable net income of $40.8M in Q1 2025, slightly down from $42.6M in Q4 2024 but generally consistent quarter-over-quarter considering seasonal fluctuations. The annual trend over the past few years has been positive with full-year net income remaining strong.
• Strong Non-Interest Income: Camden benefits significantly from net realized and unrealized capital gains on investments, which contributed $390.6M in Q1 2025, helping to bolster total revenue to $360.5M despite a negative net interest income figure from long-term debt expenses.
• Healthy Operating Cash Flow: Net cash provided by operating activities stands at $148.2M in Q1 2025, showing solid cash generation from core operations, which supports continued capital investments and shareholder returns.
• Capital Expenditure and Investments: The purchase of investment securities and property-related investments indicates ongoing strategic investment, with Q1 2025 purchase of investments at $276M, showing the firm actively manages its asset base to support growth.
• Equity Stability: Total common equity remains robust at approximately $4.6 billion as of Q1 2025, supported by a stable total equity and noncontrolling interests of $4.7 billion, indicating a strong capital base.
• Interest Expense on Long-Term Debt: The interest expenses on long-term debt remain hefty, approximately $33.8M in Q1 2025, which offsets the total interest income resulting in a negative net interest income. This highlights the company’s reliance on debt financing, which has implications for interest rate sensitivity.
• Depreciation Expense: Depreciation is a significant expense line for the company, standing at $149.3M in Q1 2025, reflecting substantial investment in property and equipment assets over the years.
• Dividend Policy: Camden maintains a consistent dividend policy, paying cash dividends to common shareholders around $1.03-$1.05 per share quarterly, signaling a focus on returning cash to shareholders.
• Increase in Long-Term Debt: The total long-term debt increased from roughly $3.48B in Q4 2024 to $3.74B in Q1 2025, reflecting significant new debt issuance ($972M in Q1 2025) partly offset by debt repayments. This increased leverage could raise financial risk depending on interest rate environments.
• Decline in Cash Reserves: Although cash and equivalents slightly increased to $26.2M in Q1 2025 from $21.0M in Q4 2024, the overall level is relatively low compared to operating cash flows and debt levels, which could limit short-term liquidity flexibility.

Summary: Camden Property Trust has managed to maintain strong revenue growth, driven largely by investment gains, while generating solid operational cash flows. However, the heavy reliance on debt financing and large interest expenses pose risks, especially in rising interest rate scenarios. The company's continued dividend payments and equity base highlight financial stability and shareholder value orientation.

Investors should monitor ongoing debt levels, interest cost management, and investment return sustainability over the coming quarters to assess the risk-reward balance of CPT stock.