CPT Q3 2025 10-Q Deep Dive: How Acquisitions Are Fueling Growth

Camden Property Trust (CPT), a major player in the U.S. apartment market, recently released its financial results for the third quarter of 2025. Digging into a company's financial filings, like this 10-Q report filed with the SEC, offers a clear view of its performance beyond the headlines. Let's break down Camden's income statement to see how the apartment landlord is navigating the current economic landscape.

Growth Driven by New Properties

A key story in Camden's report is the contrast between its established properties and its newer ones. The company's "same-store" portfolio—assets owned and operated for over a year—saw revenues climb by a modest 0.8% in the third quarter compared to last year. However, property expenses for this same group grew faster at 2.3%, resulting in a nearly flat Net Operating Income (NOI), a measure of profitability for real estate assets.

So, where is the growth coming from? The answer lies in strategic portfolio changes. For the first nine months of 2025, Camden has been busy:

• Acquisitions: The company spent nearly $338 million to acquire three properties in Florida, Tennessee, and Texas, adding over 1,100 apartment homes to its portfolio.
• Dispositions: Simultaneously, Camden sold three properties in Texas for a total of $173.5 million, netting a gain of over $132 million.

This strategy of "portfolio recycling"—selling older assets to fund the acquisition and development of newer ones—is fueling the company's overall growth, even as its core holdings face modest returns.

A Clearer Look at the Bottom Line

A quick glance at the income statement shows a massive swing in profitability, with net income attributable to shareholders hitting $108.9 million for the quarter, compared to a $4.2 million loss in the same period last year. However, these figures are heavily influenced by one-time events. This quarter's profit was boosted by an $85.6 million gain from property sales, while last year's result was dragged down by a $41 million impairment charge.

To get a more stable view of performance, real estate investors often look at Funds From Operations (FFO). FFO is a metric that adds back non-cash expenses like depreciation to net income, providing a better sense of a REIT's operating cash flow.

The following flow diagram visualizes Camden's revenue and expense streams for the third quarter, showing how the company arrived at its net income.

As the chart illustrates, the primary revenue driver is property rentals. "Non-property income" includes items like fee and asset management services, which contribute a smaller but notable portion of total income.

Camden's FFO for the quarter was $184.2 million, a slight increase from $181.5 million in the third quarter of 2024. This much more stable figure suggests that, after stripping out the noise from property sales and impairments, the company's core operational performance remains steady.

Building for the Future

Camden isn't just buying and selling; it's also building. As of September 30, 2025, the company had three multifamily properties under construction in Charlotte and Nashville. These projects, which will add over 1,100 new homes, have a total estimated cost of just over $500 million. This development pipeline represents a significant investment in future growth, positioning Camden to expand its presence in key Sun Belt markets.

In conclusion, Camden Property Trust's latest filing reveals a company actively managing its assets in a complex market. While growth from its existing portfolio is slow, a disciplined strategy of acquiring, selling, and developing properties is driving its financial results. This active management appears crucial for navigating rising operating and interest expenses, allowing Camden to maintain a stable operational footing while investing in its future.