Camden Property Trust Weighs New Multifamily Construction Starts
Ric Campo, Camden’s CEO, said, “Camden entered this time of uncertainty with an experienced management team, a sound business plan, and a strong balance sheet with solid credit metrics.”
HOUSTON — (Realty News Report) – Camden Property Trust is taking a cautious approach to development amid the COVID-19 pandemic, confirming it has not begun construction on any proposed new projects in 2020 and will evaluate future starts case by case.
Camden has several projects on its planning boards, including two proposed Houston developments: a 271-unit high-rise, Camden Downtown II, and a 300-unit community, Camden Highland Village II. Additional proposed projects are in the pipeline in Atlanta, Charlotte, Los Angeles, and Phoenix.
In an official statement, Camden noted, “The company has not started construction on any new development communities in 2020, and it will evaluate future starts on an individual basis, based on evolving economic and market conditions.”
Locally, Camden owns 26 apartment communities in Houston totaling roughly 9,300 units. The company is currently building a 271-unit, $132 million high-rise in downtown Houston that remains on schedule to open in the third quarter of 2020.
Camden reported that April rent collections were down an estimated 6 percent. Approximately 2 percent of typical April rent revenue has been deferred for future payment as some residents face financial hardship caused by the pandemic.
To assist residents in need, Camden established a $5 million resident relief fund offering up to $2,000 per household for tenants experiencing financial distress. The relief fund was fully committed within 16 minutes of its announcement, reflecting the depth of need among residents across Camden’s portfolio of about 56,000 units. The company also waived late fees to ease pressure on residents.
The company emphasized that Camden employees continue to receive pay during this period. Recognizing that some team members are facing added expenses—such as childcare—or household income losses due to COVID-19, Camden made up to $1 million available to support employees with financial difficulties. Executives committed up to $250,000 toward that relief, and the company covered the remaining $750,000.
Keith Oden, Camden’s Executive Vice Chairman, said, “The additional funds will help Camden team members meet today’s unprecedented challenges. We are proud Camden’s financial strength allows us to take care of our families.”
Given the uncertainty around the pandemic’s economic impact, Camden, which publicly trades and manages roughly 56,000 units, withdrew its forward guidance for future performance. Several other real estate investment trusts and public companies have taken similar steps amid unpredictable market conditions.
Ric Campo, Camden’s Chairman and CEO, reiterated the company’s commitment to residents and employees: “Despite the current challenging circumstances, Camden continues its mission of providing a great place to live for our residents and a great place to work for our team members. Camden entered this time of uncertainty with an experienced management team, a sound business plan, and a strong balance sheet with solid credit metrics.”
