Camden Property Trust (NYSE:CPT) Q1 2018 Earnings Conference Call Transcript

May 04, 2018 • 11:00 am ET

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Camden Property Trust (NYSE:CPT) Q1 2018 Earnings Conference Call Transcript

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Presentation
Executive
Alex Jessett

2 years.

Late in 2018, we anticipate repaying at maturity, $175 million of secured floating rate debt with an anticipated interest rate of 2.5%, and repaying at par $205 million of secured fixed rate debt with an interest rate of approximately 5.8%. Our current guidance does not anticipate any early debt prepayments and any resulting penalties. We currently anticipate issuing $400 million of unsecured debt late in 2018 at a rate of approximately 3.8%. In anticipation of this offering, we have entered into $400 million of forward starting swaps, effectively locking in the 10-year treasury at 2.65%.

And finally, some of you may have noticed in the footnotes to our income statement that we have adopted the new revenue recognition standard effective January 1, 2018. As a result, we are now presenting as rental revenues, certain revenue items totaling approximately $5.6 million, which would have historically been included as a component of other property revenues. The major components of this reclassification include rental revenues associated with reletting, parking, storage and pets. This adoption does not change the sum of our total property revenues. This new presentation has been applied prospectively and, therefore, adjustments would need to be made to prior year periods for comparison purposes.

At this time, we'll open the call up to questions, and first turn the call over to Ric Campo.

Executive
Ric Campo

Thanks, Alex. Well, we have a winner for the hold music contest, and that would be Austin Wurschmidt from KeyBanc. And Austin identified that the on-hold music was the most popular songs released in 1993 and that 2018 was Camden's 25th anniversary as a public company. Clearly, 1993 wasn't the best year for new music, but 1993 turned out to be a great year for multifamily companies to go public. Collectively, we have been at the forefront of innovation and operational excellence in the multifamily business for the past 25 years. And it's interesting to note that only 25% of public companies make it to their 25th anniversary. So thanks, Austin, and we appreciate you getting that right. So we'll now turn the call over to questions and answers from the folks on the call.