The Multifamily Value Add Fund LP's leveraged investment power,based on a $300 million fund raising, would total $1 billion.Richard J. Campo, chairman and CEO of the locally based Camden,told shareholders and analysts that the company plans to commit upto $60 million to the fund for a 20% ownership stake. He said thefund received a $150-million commitment Dec. 31, 2007.

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According to an SEC filing last Thursday, one of Camden's whollyowned subsidiaries is the fund's general partner. The fund's termis eight years, with the goal to acquire fully developedmultifamily assets nationwide. The filing said funding isanticipated to close sometime this year.

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In the earnings call, Campo reported Camden's balance sheet isstrong despite the prevailing uncertain market. He also discussedmore stock buybacks and problem markets. He indicated overallfundamentals of the business are good, with multifamily supplynationwide manageable and not too much in the way of overbuilding."The wild card is the shadow supply of single-family homes and whateffect they'll have on multifamily demand," he said. "That willunfold during 2008."

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Camden's FFO for fourth quarter 2007 totaled $57.1 million incomparison to $54.7 million for the same period in 2006. For the 12months ending Dec. 31, 2007, FFO totaled $227.2 million compared to$237.8 million in 2006. Net income for 2007 totaled $148.5 millionversus $323.8 million in 2006.

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Keith Oden, president and COO, pointed out that the crumblinghousing market was having a definite impact on Camden's bottom linein some regions. Las Vegas, Phoenix, Orlando, Tampa and SoutheastFlorida were the hardest hit areas, with shrinking demand andexcess supply.

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"We received 26% of NOI from these markets in the last quarter,"Oden explained. "These are the five markets of most concern when itcomes to too many single-family homes and declining demand formultifamily as well as too much supply." On the flip side of thecoin, he said Austin, Dallas and Houston and Denver were consideredexcellent markets with sound fundamentals.

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Oden added that Camden will continue its stock repurchasingprogram. During Q4 2007, Camden repurchased 2.2 million commonshares for a total of $115 million. Prior to the quarter's end,Camden spent $30 million for additional 690,400 common shares.

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On Jan. 30, Camden's board approved an additional $250-millionrepurchase of common shares. Oden said that as the companycontinues to sell assets, it will reinvest in the purchase ofstock.

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