Camden Property Trust (NYSE:CPT) Q1 2018 Earnings Conference Call Transcript
May 04, 2018 • 11:00 am ET
(Operator Instructions) And the first question comes from Austin Wurschmidt from KeyBanc Capital Markets. Please go ahead.
Hi, good morning. Just wanted to touch on Houston a bit and get an update there as it relates to operating trends you're seeing in the market and where occupancy sits today.
D. Keith Oden
Yes. So we're currently running in the 95% range, occupancy-wise, just above that, as we indicated in our original guidance meeting, I think we really started talking about this in the third quarter call last year, which is the spike that we saw in occupancy as a result of the Hurricane Harvey. We knew that, at one point, we got almost to 98% occupied in our entire portfolio, which is never sustainable over a long period of time. But the big uncertainty for us, as we look at 2018 plan, was how fast does that unwind happen? And there was a lot of uncertainty regarding how long is it going to take people to get their homes back together, and those that were moved in as a result of the floods?
So, we had -- we've laid out a plan where we felt comfortable that over some period of time, we would get back to kind of a more normal operating environment, which, for us, is around the 95% (ph) occupancy level. So it looks like we're there. And you saw our results for the first quarter. We're about 1.9% revenue growth. And our plan for the year indicates that we'll end the year somewhere around 3% revenue growth in Houston, which will be great, given where we were at this point last year. If somebody said, you're going to do 3% revenue growth in Houston in 2018, I would've kind of looked at it him real funny. But life is funny, and it looks like we're on track to do that. So things are returning to normal in Houston, and it looks like we're going to end up having a pretty decent year here.
And how has new and renewal lease rates trended from the first quarter and into the second quarter? And is there a disproportionate impact being driven by short-term lease renewals that's driving that number? Or are these just kind of your typical 12-month leases that are renewing?
D. Keith Oden
Yes. We're down -- we think we're down to less than 1% of residents who have any connection to delays resulting from -- or the flood. I mean, it's just a very small number. So if you look at our short-term leases versus kind of long-term trends, then you wouldn't see any difference today in our rent role from where we have been. So it's business as usual, 12 month and 15 month leases across our entire platform, which is what -- again, that's what we wanted to get back to as quickly as we could.
And then as far as new and renewal lease rates?
D. Keith Oden
Yes. So new lease rates were running about 0%; renewals, about 5%.