Camden Property forecasts full-year core funds from operations below estimates as lease rates slide

Feb 5 (Reuters) - Real estate investment trust Camden Property CPT.N forecast full-year funds from operations below analysts' estimates on Thursday, as the company grappled with falling new lease rates and tepid property revenue growth.

Real estate investment trusts are bracing for a challenging 2026 as higher-for-longer interest rates, softening demand across key property segments and lingering oversupply in areas like multifamily segment continue to squeeze operating performance.

The Texas-based real estate investment trust owns and manages over 59,210 apartment homes across the United States.

Effective new lease rates at Camden Property continued to deteriorate in the fourth quarter, falling 5.3% compared with a 4.7% decline in the same period a year earlier.

The company expects 2026 core funds from operations — a key measure of a REIT's performance — between $6.60 and $6.90 per share, below analysts' expectations of $6.91 per share, as per data compiled by LSEG.

It also expects first-quarter core FFO at $1.64 and $1.68 per share, below analysts' expectations of $1.71 per share.

For the quarter ended December 31, it reported core FFO of $1.76 per share, compared with $1.73 per share a year earlier.

Revenue from property during the fourth quarter rose about 1.2% to $390.79 million.

The company reported profit per share of $1.44 in the quarter, compared with 37 cents a year earlier.