Boston, MA 05/08/2014 (wallstreetpr) – Camden Property Trust (NYSE:CPT) reported 1Q that showed encouraging growth of funds from operations (FFO) a measure used to evaluate REIT performance. However, the company wants investors to know that what it reported in the quarter is just the tip of the iceberg in terms of its potential.
Talk about potential and the company is bullish about the real estate opportunities in Houston. The strong demand coupled with potential tax breaks for developers present an exciting picture for the company in its efforts to create big shareholder value.
Camden Property Trust (NYSE:CPT) is scheduled to break ground with its real estate development in Houston by the end of 2013 with some more projects lined up for the near future.
Houston enjoys occupancy rate of 96 percent and the big job opportunities in the region continue to create housing shortages. Furthermore, rapid urbanization is also inviting many people to the region, and there are no adequate units to satisfy the demand. There are already a growing interest among developers to move into Houston to take advantage of the big housing demand, but Camden Property Trust (NYSE:CPT) believes its strategy gives it an upper hand against competitors.
The company has its McGowen Station project coming up soon. The project proposed an eight-storey building in Midtown. The construction work for the projected is expected to start before the year ends.
More projects in the pipeline
Camden Property Trust (NYSE:CPT) recently acquired land for a second project that is expected to be a downtown complex to be built in two phases and on a 3-acre land acquired for $15.6 million.
According to CEO Rick Campo, the proposed downtown complex is expected to qualify for tax breaks through an expanded Downtown Living Initiative that offer benefits to multifamily units.
1Q at a glance
Camden Property Trust (NYSE:CPT) realized FFO of $94.8 million or $1.05 per diluted share in 1Q2014. That compared with $86.6 million or 97 cents per diluted share in the corresponding quarter a year earlier.
Net income in the latest quarter was $40 million, translating to 45 cents per diluted share.
