Camden Property Trust earns most of its revenue by renting apartments and providing related services to residents. In the third quarter of 2026, selling its California communities lifted profit attributable to common shareholders to $900.4 million, but revenue from its established, comparable properties was almost unchanged. The sale gives Camden money to buy and build apartments in its Sunbelt markets; replacing the income from the properties sold remains the immediate business challenge.
Analysis period: July–September 2026, with January–September comparisons. Research cutoff: November 8, 2026, New York time. The latest Camden financial disclosures verified are its November 6 filing and November 5 earnings materials, including their October updates.
1. The California sale raised profit while the operating portfolio earned less
The profit increase came from selling property, while income from operating apartments declined. Camden sold 11 California communities containing 3,620 homes for approximately $1.6 billion in July. It recorded approximately $973.0 million of gains on those sales: the amount by which the proceeds, after selling costs, exceeded the properties’ accounting value.
That gain is economically meaningful because Camden turned property into cash. It is also different from rent earned month after month. Once a community is sold, its future rent belongs to the buyer.
The distinction is visible in the results below. Property net operating income, or NOI, means property revenue minus the costs of running those properties, including property taxes. It measures what the apartments contribute before interest, depreciation, corporate expenses, and income taxes.
| Consolidated results; USD millions except EPS | Q3 2026 | Q3 2025 | First nine months 2026 | First nine months 2025 |
|---|---|---|---|---|
| Property revenue | 381.061 | 395.676 | 1,162.778 | 1,182.750 |
| Property NOI, non-GAAP | 240.272 | 249.980 | 740.976 | 753.962 |
| Gains on sales of operating properties and land | 973.508 | 85.645 | 1,041.608 | 132.938 |
| Land-development impairment expense | 86.404 | 0.000 | 86.404 | 0.000 |
| Net income attributable to common shareholders | 900.391 | 108.934 | 961.630 | 228.426 |
| Diluted earnings per common share, USD | 8.71 | 1.00 | 9.26 | 2.10 |
Source: Camden Q3 2026 Form 10-Q, consolidated income statement, p. 2; Note 12, pp. 22–23; NOI reconciliation, p. 30. The California sales remained within continuing operations; the company did not classify them as discontinued operations.
Quarterly property revenue fell 3.7%, and NOI fell 3.9%. Income added by acquisitions and newly leased developments only partly replaced income lost through sales. The following calculation shows where the decline came from.
| Change in quarterly property NOI, 2026 versus 2025; USD millions | Change |
|---|---|
| Properties sold and other property items | −20.147 |
| Properties outside the comparable group, including acquisitions | 9.562 |
| Development and lease-up communities | 1.204 |
| Established comparable properties | −0.327 |
| Total decline | −9.708 |
Source: Q3 2026 Form 10-Q, property-level NOI, p. 30. The acquisitions group also includes properties that recently reached stable occupancy or were being redeveloped.
Interest also took a larger share of the business’s income. Quarterly interest expense rose to $41.0 million from $35.0 million after new bond and bank borrowing and greater use of the revolving credit facility during the quarter. This helps explain why selling buildings at a large accounting gain did not translate into stronger ongoing earnings.
Camden’s Core Funds from Operations, or Core FFO, provides another view. It adds back accounting charges that spread real estate costs over time, removes property-sale gains, and adjusts for certain other items. Quarterly Core FFO fell 4.7% to $178.0 million from $186.8 million; over the first nine months, it fell 5.3% to $534.2 million from $564.2 million. The complete adjustment table appears in Calculation notes A. Even under management’s adjusted measure, the business earned less in total.
Source: Q3 2026 Form 10-Q, property-level NOI, pp. 30–32; expense discussion, pp. 33–34; FFO reconciliation, p. 35.
2. Residents are staying, but new leases still face price pressure
Stable occupancy is supporting revenue, while lower rents and higher costs limit growth. The clearest test uses the same communities in both periods. Camden’s 2026 comparison includes 51,087 homes in properties wholly owned and operating beyond their initial leasing stage since January 1, 2025, excluding redevelopment and properties held for sale.
| Comparable-property results; USD millions except margins | Q3 2026 | Q3 2025 | First nine months 2026 | First nine months 2025 |
|---|---|---|---|---|
| Revenue | 332.846 | 333.258 | 996.340 | 996.532 |
| Property expenses | 121.921 | 122.006 | 363.342 | 358.866 |
| Property NOI | 210.925 | 211.252 | 632.998 | 637.666 |
| NOI as a percentage of revenue, calculated | 63.37% | 63.39% | 63.53% | 63.99% |
Source: Q3 2026 Form 10-Q, “Property-Level NOI” and “Same Store Analysis,” pp. 30–31. NOI margins are calculated from the amounts shown.
Management attributes the nearly flat revenue to lower rental rates being largely offset by occupancy and charges for utilities and other services. Residents continuing their leases help: third-quarter effective renewal rents rose 3.6%, while rents on new leases fell 2.0%, each measured against the expiring lease. Comparable-property occupancy was 95.6%, versus 95.5% a year earlier.
Those two rent measures describe different customer decisions. Existing residents accepted higher renewal prices, while Camden offered lower prices to new residents. With residential leases averaging about fourteen months, changes in newly effective leases take time to spread through total revenue.
Sources: Camden’s November 5, 2026 supplement, p. 3, effective lease rates and comparable-property occupancy; Q3 2026 Form 10-Q, Note 2, p. 11, and same-store analysis, p. 31.
Costs explain the difference between stable revenue and falling nine-month property income. Utilities, property taxes, marketing, and employee costs increased. Lower insurance expense partly offset those increases. During the third quarter alone, insurance and employee-cost savings almost balanced higher utilities, leasing, and repair costs, keeping property expenses roughly flat. Thus the quarter’s steadier margin came partly from cost relief rather than stronger rental pricing.
Source: Q3 2026 Form 10-Q, “Same Store Analysis,” p. 31.
The slowdown predates the California sale. Camden reported third-quarter comparable-property revenue growth of 4.1% in 2023, 0.6% in 2024, and 0.8% in 2025. The 2026 comparison was a 0.1% decline. Each year uses its own qualifying property group, so these rates show the broad operating progression rather than the growth of one unchanged portfolio.
Sources: Camden’s third-quarter earnings releases dated October 26, 2023, October 31, 2024, and November 6, 2025, “Same Property Results”; 2026 Form 10-Q, p. 30.
Competitor MAA provides a useful check on whether this is only a Camden problem. In its October 28 release, MAA reported third-quarter comparable-property revenue down 0.4% and NOI down 1.8%. Its management said improvement in new-resident pricing was arriving about a quarter later than expected, although October leasing showed improvement. The portfolios differ, but both companies’ results show that keeping apartments occupied has been easier than lifting overall rental revenue.
Source: MAA Q3 2026 results, October 28, 2026, management commentary and “Same Store Operating Results.” This is a directional comparison, not an assumption that the companies have identical properties or cost structures.
Management’s November outlook reflects this slower progress. Its full-year comparable-property revenue-growth midpoint fell from 0.5% to zero, and the NOI-growth midpoint moved from a 0.6% decline to a 1.0% decline. Lower expected expense growth only partly offset the weaker revenue outlook.
Source: Camden’s November 5, 2026 supplement, p. 3, “Same Property Growth Guidance.” These are management forecasts for the full year, not reported quarterly results.
3. New apartments can replace lost income, but construction takes years
Camden is exchanging current rental income for newer properties and future development income. In its 2025 annual letter, management said it intended to use most California sale proceeds to acquire newer properties in existing Sunbelt markets, where it expected better growth. That purpose gives the transaction a business rationale: change the locations and age of the portfolio, then build income from the replacements.
Source: Camden 2025 Annual Report, shareholder letter, PDF p. 3, “2026 Outlook.” This was management’s stated plan, not an achieved growth outcome.
By September, Camden had bought eight operating communities for approximately $754.5 million. They were located in Florida, Georgia, Tennessee, Texas, Arizona, and North Carolina. Operating communities fell from 172 at year-end to 168, with apartment homes falling from 58,759 to 56,995. The company had already begun replacing sold assets, but it was operating a smaller portfolio at quarter-end. Houston and the Washington, D.C., area remained its two largest markets, with 8,207 and 6,194 operating homes, respectively.
The California communities also had established earning power. JLL, the broker representing Camden in the sale, reported trailing twelve-month occupancy averaging 96% and minimal rent concessions. The company therefore sold functioning, well-occupied properties. New investments must replace that contribution before the portfolio change can improve total earnings.
Sources: Q3 2026 Form 10-Q, Note 5, p. 14, and portfolio table, p. 28; JLL’s transaction announcement, August 5, 2026. JLL participated in the transaction; its occupancy description concerns the sold portfolio.
New construction offers a longer route to replacement income. Four projects had estimated total costs of $618.0 million, of which $408.7 million had been incurred. The remaining $209.3 million is a future funding requirement. Leasing some finished apartments before an entire development is complete allows rent to begin earlier, but management’s schedules show that full operating contributions arrive gradually.
| Projects under construction at September 30, 2026 | Homes | Estimated total cost, USD millions | Expected construction completion | Expected stabilization |
|---|---|---|---|---|
| Camden South Charlotte | 420 | 155.0 | Q2 2027 | Q4 2028 |
| Camden Blakeney, Charlotte | 349 | 149.0 | Q3 2027 | Q3 2028 |
| Camden Nations, Nashville | 393 | 184.0 | Q3 2028 | Q2 2030 |
| Camden RTP, Morrisville | 398 | 130.0 | Q4 2029 | Q3 2031 |
Two additional planned communities in Tampa had a combined estimated cost of $362.0 million, with $54.1 million invested. They were not yet under construction. Starting them would add funding needs beyond the four active projects; management said future starts depend on market and economic conditions.
Source: Q3 2026 Form 10-Q, development tables, pp. 28–29. Dates and costs are management estimates. “Stabilization” means reaching the company’s expected mature operating stage after apartments have been offered for rent.
The completed Camden Village District illustrates the time needed to fill a new community. It was 50% leased on October 31, 2025, and 88% leased a year later. Camden now expected stabilization in the first quarter of 2027. South Charlotte and Blakeney were only 24% and 8% leased, respectively, at October 31, 2026. More apartments must be leased before these projects reach their planned operating income.
Sources: Camden Q3 2025 results, “Development Activity”; Q3 2026 Form 10-Q, pp. 28–29.
The land write-down is the strongest counterweight to the expansion plan. Camden put two projects on hold for the foreseeable future and reduced their recorded values by $85.2 million. A separate parcel produced another $1.2 million charge. These charges did not require new cash payments in the quarter, but they recognize that earlier land and development spending is worth less than previously recorded.
This has happened before: Camden recorded approximately $41.0 million of land-development impairments in the third quarter of 2024 after deciding not to proceed at that time with four projects. Repeated write-downs show why excluding impairments from FFO does not remove development risk. Pausing projects can avoid further spending; it also leaves previously invested money without the rental income originally contemplated.
Sources: Q3 2026 Form 10-Q, Note 5, p. 14, and development discussion, p. 25; Camden Q3 2024 results, impairment discussion.
4. Property sales financed spending that operating cash did not cover
Operating cash covered distributions, but not distributions plus the full property-investment program. Camden generated $516.0 million from operations in the first nine months, down 18.1% from $629.8 million. This measure includes money collected from residents and operating payments; property-sale proceeds appear separately under investing activities.
The $53.0 million antitrust settlement payment was a major reason for the decline. Management also identified income lost through dispositions, the timing of property-tax payments, and higher cash interest. Newly acquired communities partly offset those pressures. Cash interest paid, after interest included in development costs, rose to $107.9 million from $95.9 million.
Payment timing also left Camden with less cash. Changes in unpaid bills and other operating accounts added $16.2 million to operating cash in 2026, compared with $52.3 million in 2025. The increase in property taxes still owed was smaller, and reductions in other unpaid bills used cash. In practical terms, the timing of operating payments left less cash in the company than a year earlier.
Source: Q3 2026 Form 10-Q, cash-flow statement, p. 7; Note 13, p. 23; cash-flow discussion, pp. 36–37.
Camden is a real estate investment trust, or REIT. To retain that tax status, it must distribute at least 90% of adjusted taxable income, which differs from accounting profit. This requirement makes distributions an important part of funding decisions; the property-sale gain alone does not determine the cash dividend required.
Source: Q3 2026 Form 10-Q, Note 10, p. 21.
The following comparison tests how much cash remained after the company’s broad property-spending line. Spending is shown as a positive amount to be deducted.
| Cash allocation; USD millions | First nine months 2026 | First nine months 2025 |
|---|---|---|
| Cash from operations | 516.013 | 629.806 |
| Development and capital improvements, including land | 362.050 | 310.388 |
| Cash remaining after that spending, calculated | 153.963 | 319.418 |
| Cash distributions to shareholders and outside partnership owners | 337.439 | 345.465 |
| Cash remaining after spending and distributions, calculated | −183.476 | −26.047 |
| Cash paid to repurchase common shares | 483.057 | 49.999 |
| Cash paid to acquire operating properties | 749.605 | 334.216 |
Source: Q3 2026 Form 10-Q, cash-flow statement, p. 7. The calculated remainder uses the exact cash-flow spending line; it excludes operating-property acquisitions and is not Camden’s Core AFFO or a measure of cash after maintenance spending alone.
Camden disclosed what its investment spending was for. The $362.1 million rounded total comprised $190.2 million for new development, $85.4 million for capital expenditures, and $63.4 million for upgrades intended to improve existing communities. Another $23.1 million covered interest, taxes, and indirect development costs recorded as part of the assets being built. Cash spent on three land purchases was a major reason spending increased. The separate $749.6 million acquisition cash outflow should not be confused with the $754.5 million reported transaction purchase prices.
Net property and land sale proceeds of $1,677.3 million were the largest source supporting this capital program. New notes provided another $945.7 million of cash, while commercial-paper repayments used $591.5 million. The cash balance increased, but the increase depended on selling assets and borrowing as well as collecting rent. That funding structure makes the timing of future purchases, developments, and debt payments important to Camden’s flexibility.
Source: Q3 2026 Form 10-Q, pp. 7 and 36–37. Calculation notes B reconcile all three cash-flow categories to closing cash.
5. Available borrowing capacity matters more than the headline cash balance
Camden has substantial funding access, but much of its closing cash was set aside for property exchanges. Of $607.4 million in cash, cash equivalents, and restricted cash, only $168.7 million was unrestricted. Approximately $427.0 million was held by an intermediary for Section 1031 property exchanges. Treating all of that money as freely available for ordinary payments would overstate immediate flexibility.
| Consolidated financial position; USD millions | September 30, 2026 | December 31, 2025 |
|---|---|---|
| Unrestricted cash and cash equivalents | 168.704 | 25.203 |
| Restricted cash | 438.648 | 12.039 |
| Operating real estate, after depreciation | 8,232.616 | 8,284.344 |
| Development properties and land | 402.848 | 419.227 |
| Other assets and affiliate receivables | 321.313 | 302.176 |
| Total assets | 9,564.129 | 9,042.989 |
| Financing debt, carrying amount | 4,228.277 | 3,900.790 |
| Other liabilities | 707.503 | 703.946 |
| Total equity, including outside partnership owners | 4,628.349 | 4,438.253 |
Source: Q3 2026 Form 10-Q, balance sheet, p. 1; restricted-cash policy, p. 11; Note 5, p. 14. Combined rows and the accounting equation are reconciled in Calculation notes C.
The asset increase was mainly cash rather than a larger recorded property base. Acquisitions and construction added assets, while sales, depreciation, and land impairments reduced them. Financing debt nevertheless increased by $327.5 million from year-end. Repaying approximately $900 million of revolving and commercial-paper balances with California proceeds during the quarter therefore did not mean total debt had fallen over the first nine months.
The credit facility supplies another layer of flexibility. At September 30, Camden had approximately $1.2 billion available, with no commercial paper outstanding. The facility also backs the commercial-paper program, so those capacities should not be counted twice. Its maturity was extended to March 2030, with two optional six-month extensions. Camden also had an unused $500 million share-issuance program; that is potential funding rather than cash already received.
Source: Q3 2026 Form 10-Q, Notes 4–6, pp. 13–16; liquidity discussion, pp. 37–38.
Near-term refinancing remains material. At September 30, approximately $1.0 billion of contractual debt matured within twelve months. In October, Camden repaid the $500 million notes originally due in November using cash and commercial paper. The bond obligation was extinguished, but the borrowed portion became a new short-term funding obligation. The filing does not give the resulting October commercial-paper balance.
| Scheduled debt amounts at September 30; USD millions | Carrying amount |
|---|---|
| Remainder of 2026 | 499.2 |
| 2027 | 521.4 |
| 2028 | 569.3 |
| 2029 | 597.7 |
| 2030 | 748.5 |
| Thereafter | 1,292.2 |
| Total | 4,228.3 |
Source: Q3 2026 Form 10-Q, Note 6, pp. 16–17. This is the filing’s schedule before the October repayment and includes available extension options. Amounts include debt-discount, issuance-cost, and fair-value adjustments, so they differ from contractual principal. The 2027 obligations include a $350 million bank loan due in July.
Borrowing costs are already affecting the business. The new $600 million bond due in 2036 carries a 4.90% cash coupon, equivalent to $29.4 million of annual contractual interest. Its disclosed effective rate, including financing costs, is 5.03%. Across outstanding debt, Camden reported a 4.1% weighted-average rate and a five-year average maturity at September 30. Nine-month interest expense rose 15.0% to $119.8 million from $104.2 million.
Approximately $889.2 million of debt carried floating interest rates at September 30, including the $500 million bond converted to floating rates through an interest-rate swap. That swap ended with the October repayment. Because commercial paper funded part of the repayment, Camden continued to face exposure to short-term borrowing rates.
Camden reported compliance with its borrowing covenants through the filing date. Its senior-note debt-to-assets covenant ratio was 29%, below the 60% ceiling, using the covenant’s asset definitions. Office and other operating leases add $33.4 million of undiscounted future payments, recorded as a $25.0 million liability. These leases are much smaller than the financing debt. The available credit and covenant headroom support the investment program, while higher interest and upcoming maturities limit how much flexibility can be spent elsewhere.
Sources: Q3 2026 Form 10-Q, Note 6, pp. 15–17; Note 9, p. 20; interest discussion, p. 33; November 5 supplement, p. 20, senior unsecured note covenants.
6. Buybacks supported per-share results while using substantial cash
A smaller share count softened the effect of lower total earnings. Repurchasing shares distributes cash to selling shareholders and reduces the number of shares among which future earnings are divided. Camden repurchased 4,536,826 shares under its programs during the first nine months, with approximately $472.9 million recorded in equity. Repurchased shares were held in treasury.
For the third quarter, Core FFO fell 4.7%, but the diluted share-and-unit count used for FFO fell 5.8%, to 103.826 million from 110.174 million. Reported Core FFO per diluted share consequently rose to $1.71 from $1.70. Reducing the share count supported the per-share result even though the company earned less in total.
Source: Q3 2026 Form 10-Q, equity statement, p. 3; Note 4, p. 13; FFO and share-count reconciliation, p. 35. FFO’s denominator differs from the prior-year GAAP EPS denominator because convertible partnership units are included in FFO.
Employee share awards partly offset the reduction in shares. Camden’s treasury-share count increased by about 4.3 million, less than the number repurchased, while awards and the employee purchase plan returned shares to use. Compensation paid in shares cost $14.0 million in the income statement, and another $2.0 million was included in development assets. Those costs matter even though they do not all require current cash payments.
The tradeoff is the cash committed. The cash-flow statement records $483.1 million paid for common-share repurchases, compared with the $472.9 million equity entry. The filing does not provide a complete bridge between those amounts, so the cash analysis uses the cash-flow figure. Another $247.9 million remained authorized under the repurchase plan, which creates an option to spend rather than an obligation.
Total equity increased by $190.1 million because reported profit exceeded distributions and the equity cost of repurchases. Gains realized by selling properties supplied most of that profit. They strengthened the recorded ownership balance without demonstrating faster rent growth.
Source: Q3 2026 Form 10-Q, pp. 1, 3, and 7; Notes 4 and 8, pp. 13 and 18–19. Calculation notes C reconcile each material equity component.
7. The paid settlement resolves one lawsuit, with other cases still open
The class settlement is paid, but related government litigation remains unresolved. Camden agreed to pay $53.0 million to settle a class action alleging that apartment operators used RealPage rental software to coordinate rents unlawfully. It paid two $26.5 million installments in the second and third quarters, and final court approval arrived in October 2026. The agreement also includes commitments concerning the disclosure and use of non-public data. Camden did not admit liability.
The distinction between that settlement and the remaining cases matters. Camden still faced proceedings involving the District of Columbia, Arizona, the U.S. Department of Justice and participating states, and Maryland, as well as inquiries by other state regulators. The company said it could not estimate losses from adverse decisions in these cases. The paid class settlement therefore removes one identified payment requirement without establishing a ceiling on the remaining exposure.
Camden recorded $55.5 million of expense during the first nine months for the settlement and other unresolved related matters, including estimated defense costs. A third-quarter adjustment reduced expense by approximately $1.0 million. Core FFO excludes specified legal costs and recoveries, but the settlement’s cash payment remains a real use of funds. Future legal spending or changes required in pricing practices could affect cash and operations even when management excludes the associated expense from its preferred earnings measure.
Source: Q3 2026 Form 10-Q, Note 9, pp. 19–20; Core FFO reconciliation, p. 35. No additional loss estimate is assumed here.
8. Camden has funded its transition; stronger rental income is the next test
Camden’s financing position supports the portfolio transition, but its operating recovery is not yet established. The company has sold a large portfolio, begun acquiring replacements, retained substantial borrowing capacity, and funded developments that can contribute more rent as leasing progresses. Stable occupancy and rising renewal rents show continued demand from residents.
The company is still giving up more property income through sales than it is adding from replacement communities. Higher interest costs make the time needed to fill new apartments more consequential, while the land write-downs show the cost of committing money before projects become viable.
The business assessment would improve if newly acquired and newly leased apartments replace the income sold, while new-resident pricing strengthens enough to lift total property revenue faster than costs. If that takes longer, Camden can adjust the pace of acquisitions, development starts, and discretionary repurchases. Its current access to funding gives management room to make those choices; the eventual success of the Sunbelt shift depends on the rent and cash the replacement properties produce.
Reporting basis:
This analysis uses Camden Property Trust’s unaudited consolidated U.S. GAAP Form 10-Q for the quarter ended September 30, 2026, filed November 6, 2026, SEC accession 0001628280-26-071470, CIK 0000906345. It includes controlled subsidiaries and operating partnerships, with intercompany amounts eliminated. The company reports one apartment-property segment. Common-shareholder profit excludes income allocated to outside partnership owners; consolidated net income includes it.
Quarterly comparisons cover July 1–September 30 in each year. Cumulative comparisons cover January 1–September 30. Financial-position comparisons use September 30, 2026 and December 31, 2025. Comparative amounts follow the 2026 filing’s presentation, including its reclassification of certain prior-year legal costs. Figures are in U.S. dollars; table amounts retain sufficient precision to reproduce calculations.
Research was bounded by November 8, 2026, New York time. The latest verified Camden financial source is the November 6 filing. October debt repayment, litigation approval, land sale, and leasing information disclosed in the filing or accompanying earnings materials are within the evidence reviewed. The analysis does not assume that all subsequent developments have been independently confirmed.
Sources: Camden’s SEC filing history; selected 10-Q; SEC company financial facts. Electronic facts were checked against the filing’s dates, dollar units, and accounting scope. In this filing, the electronic fact labelled “Net Income (Loss)” represents common-shareholder profit; the fact explicitly including non-controlling interests supplies consolidated profit. Property lease revenue also includes the related resident-service components, so it is broader than apartment rent alone.
Calculation notes:
A. How reported profit becomes Camden’s adjusted earnings measures
The following table reproduces Camden’s reconciliation. Positive adjustments are added; negative adjustments are subtracted. FFO restores real estate depreciation and impairment charges and removes specified property gains. Core FFO then removes additional items selected by management. Interest expense and ordinary share-based compensation remain costs in these measures. These are earnings measures, not operating cash flow. The company does not assign separate tax adjustments to these rows; reported income-tax expense remains in the starting result. No additional assumed tax benefit is applied.
| Reconciliation; USD millions | Q3 2026 | Q3 2025 | First nine months 2026 | First nine months 2025 |
|---|---|---|---|---|
| Reported net income attributable to common shareholders | 900.391 | 108.934 | 961.630 | 228.426 |
| Add real estate depreciation and amortization | 156.148 | 156.272 | 455.989 | 451.326 |
| Add land-development impairment | 86.404 | 0.000 | 86.404 | 0.000 |
| Remove operating-property sale gains | −972.971 | −85.645 | −1,040.849 | −132.938 |
| Add income allocated to convertible outside partnership interests | 6.380 | 4.645 | 10.221 | 8.514 |
| FFO | 176.352 | 184.206 | 473.395 | 555.328 |
| Remove specified land-sale gain | −0.537 | 0.000 | −0.537 | 0.000 |
| Property-damage expenses, net of recoveries | 0.000 | −0.444 | −3.479 | −1.413 |
| Legal costs and settlements, net | −0.985 | 2.151 | 50.619 | 6.334 |
| Expensed transaction/development costs and costs of pursuing projects | 3.233 | 0.695 | 9.312 | 3.658 |
| Investment losses | 0.000 | 0.000 | 4.855 | 0.000 |
| Other miscellaneous adjustments | −0.036 | 0.168 | 0.026 | 0.244 |
| Core FFO | 178.027 | 186.776 | 534.191 | 564.151 |
| Deduct company-defined recurring capitalized expenditures | −30.338 | −29.274 | −76.630 | −75.340 |
| Core AFFO | 147.689 | 157.502 | 457.561 | 488.811 |
Source: Q3 2026 Form 10-Q, pp. 34–35. Core AFFO deducts expenditures Camden identifies as necessary to preserve property value and functionality. It does not deduct all acquisitions, construction, or other cash spending. Real estate depreciation here differs from total depreciation and amortization in the cash-flow statement.
B. Why reported profit and cash differ
Property-sale gains are removed from operating cash because the sale proceeds are counted under investing activities. Depreciation and impairments are added back because those expenses do not themselves require current-period cash payments. Changes in operating accounts reflect when bills are paid, alongside the other adjustments disclosed by Camden.
| Profit-to-operating-cash reconciliation; USD millions | First nine months 2026 | First nine months 2025 |
|---|---|---|
| Consolidated net income, including outside partnership owners | 971.851 | 236.940 |
| Add depreciation and amortization | 467.166 | 460.834 |
| Add land-development impairment | 86.404 | 0.000 |
| Remove property and land sale gains | −1,041.608 | −132.938 |
| Add investment losses | 4.855 | 0.000 |
| Add cash-flow statement’s share-compensation adjustment | 11.113 | 12.716 |
| Add net operating-account changes and other adjustments | 16.232 | 52.254 |
| Cash from operating activities | 516.013 | 629.806 |
The share-compensation adjustment has a different scope from total compensation cost in Note 8. Within the operating-account row, accrued property taxes added $33.739 million in 2026 versus $52.089 million in 2025. Accounts payable and accrued expenses used $24.208 million in 2026 versus providing $7.239 million in 2025. These are components of the cash flow already shown.
Closing cash also reconciles across the three kinds of activity:
| Cash reconciliation; USD millions | First nine months 2026 | First nine months 2025 |
|---|---|---|
| Opening cash, equivalents, and restricted cash | 37.242 | 32.209 |
| Operating cash flow | 516.013 | 629.806 |
| Investing cash flow | 555.479 | −478.565 |
| Financing cash flow | −501.382 | −146.141 |
| Closing cash, equivalents, and restricted cash | 607.352 | 37.309 |
Source: Q3 2026 Form 10-Q, p. 7 and Note 13, p. 23. September 2025 closing cash is a cash-flow comparator; it is not the December 2025 balance-sheet comparator.
C. Assets, obligations, and ownership balances reconcile
At September 30, assets of $9,564.129 million equal liabilities of $4,935.780 million plus equity of $4,628.349 million. At December 31, the corresponding check is $9,042.989 million = $4,604.736 million + $4,438.253 million.
The combined asset row in section 5 includes other assets of $313.260 million plus affiliate receivables of $8.053 million in September, versus $293.292 million plus $8.884 million in December. Other assets include investments held to pay employee compensation later, the accounting value assigned to leases acquired with properties, and technology investments. Deferred-compensation investments increased from $150.6 million to $163.4 million; their investment gains and losses have matching compensation effects, so they do not represent additional apartment operating profit.
Financing debt combines notes backed by specific properties and notes without such collateral. Other liabilities include unpaid operating bills, property taxes, declared distributions, and other obligations. Accounts payable and accrued expenses fell from $248.087 million to $209.089 million, while accrued property taxes rose from $92.382 million to $129.373 million. Balance-sheet movements differ from the cash-flow adjustments because acquisitions, dispositions, and noncash entries can also change those balances.
The following table checks how the ownership balance changed. Negative treasury-share amounts represent the cost of shares Camden holds after buying them back. “Distributions in excess of income” records cumulative distributions beyond accumulated common-shareholder profit, rather than an unpaid liability.
| Equity component; USD millions | December 31, 2025 | Change | September 30, 2026 |
|---|---|---|---|
| Common-share par value | 1.157 | 0.000 | 1.157 |
| Additional paid-in capital | 5,948.938 | 8.490 | 5,957.428 |
| Distributions in excess of common-shareholder income | −969.240 | 634.302 | −334.938 |
| Treasury shares at cost | −620.497 | −458.079 | −1,078.576 |
| Accumulated other comprehensive income | 2.165 | 0.232 | 2.397 |
| Outside partnership owners’ interests | 75.730 | 5.151 | 80.881 |
| Total equity | 4,438.253 | 190.096 | 4,628.349 |
Common-shareholder income of $961.630 million less declared common distributions of $327.328 million explains the $634.302 million improvement in accumulated income after distributions.
Treasury shares changed by repurchases of $472.901 million, offset by $14.011 million for net share awards and $0.811 million for the employee purchase plan. Paid-in capital, which records contributed capital beyond shares’ nominal value, increased by $8.123 million from net awards and $0.630 million from the employee plan, less $0.263 million of other changes.
Other comprehensive income records certain accounting changes outside current profit. Its $0.232 million increase concerns interest-rate hedges and post-retirement benefits. Outside owners’ income of $10.221 million less declared distributions of $5.070 million explains their $5.151 million increase.
Sources: Q3 2026 Form 10-Q, pp. 1–3; Notes 2, 7, 11, and 13. Cash distributions of $337.439 million differ from distributions declared in equity of $332.398 million because declaration and payment dates differ. No shares had been sold through the replacement at-the-market issuance program as of the filing date.
D. Growth rates, margins, and forecast boundaries
Growth rates divide the current-period amount by the same prior-year period, then subtract one. For example, quarterly property-revenue growth is $381.061 million ÷ $395.676 million − 1 = −3.69%. Nine-month operating-cash growth is $516.013 million ÷ $629.806 million − 1 = −18.07%. NOI margins divide property NOI by property revenue; the nine-month comparable-property margin fell by 0.46 percentage points, not 0.46%.
The cash-allocation remainder is $516.013 million of operating cash less $362.050 million of development and improvements = $153.963 million; deducting $337.439 million of paid distributions leaves −$183.476 million.
The new bond’s annual cash coupon is $600.0 million principal × 4.90% = $29.4 million. This is a contractual annual amount, not 2026 interest expense or a forecast of total company interest. The office-lease payment schedule totals $33.4 million before its $8.4 million discount for payment timing, producing the $25.0 million recorded liability.
Sources: Q3 2026 Form 10-Q, pp. 2, 7, 16–17, 20, and 30. Historical comparable-property growth uses each year’s disclosed property group. The 2023 supplement, p. 11, reports $318.403 million versus $305.851 million, verifying rounded growth of 4.1%. The 2024 supplement, p. 11, reports revenue of $367.488 million versus $365.148 million; the 2025 supplement, p. 11, reports $374.669 million versus $371.684 million. These verify the rounded 0.6% and 0.8% historical comparisons without joining different property groups into a single growth calculation.
This report is for general information and business analysis. It is not investment advice or a recommendation to trade any security.