dbvirago/iStock via Getty Images
RBC Capital Markets on Monday lowered its rating recommendation on Camden Property Trust (NYSE:CPT) shares to Sector Perform from Outperform on the view that its “stronger-than-expected 2Q24/July results were more a product of peak leasing season than improving fundamentals.”
The apartment REIT provided a business update for its Q3 through Aug. 31, 2024, that showed its same-property occupancy rate increased from the past two quarters and same-property blended lease rental rate crept up.
But analyst Brad Heffern thinks Camden Property (CPT) in on track to miss guidance for the back half of 2024, he wrote in a note, adding he no longer sees competitive FFO growth in 2025 as “this may be another long fall/winter for the Sun Belt” market.
“While tapering supply is in sight, the supply problem could be replaced by a demand problem if move-outs to buy a home return to normal levels as rates come down.”
RBC’s Sector Perform rate aligns with the Seeking Alpha Quant rating system of Hold and diverges from the average Wall Street analyst rating of Buy.
(CPT) edged down 0.3% in late morning trading.
