(Reuters) – Camden Property Trust beat Wall Street estimates for second-quarter funds from operations (FFO) on Thursday, helped by strong demand for rental spaces in states like North Carolina and Arizona.
Rental supply across the United States, most prominently in the country’s Sunbelt region, remains elevated.
The real estate investment trust (REIT), however, said that less than 20% of its portfolio is in the markets where supply is outstripping demand.
Meanwhile, the outlook for long-term rental demand remains healthy due to trends such as high costs of home ownership, stable employment levels and delayed marriages.
The REIT, which manages more than 60,000 apartment units across the U.S., saw signed new-lease rates, offered to tenants who newly move in, decline by 1.8%.
The renewal rates, given to tenants extending their stay, increased by 3.7%, leading to positive growth in rental revenue.
Camden reported FFO per share, a key measure of performance of a REIT, of $1.71, in the quarter ended June 30. Analysts on average had estimated FFO per share of $1.67, according to LSEG data.
The same property revenues grew 1.4%.
Shares of the company were flat in trading after the bell.
(Reporting by Ananta Agarwal in Bengaluru; Editing by Mohammed Safi Shamsi)
