Camden's Q4 Shows Decline in Concessions

"Portfolio wide concessions decreased for first time in two and a half years," says Camden president and COO Keith Oden, adding the decrease amounted to nearly $90 per unit on an annualized basis. Overall, the REIT saw concession expenses decrease $1 million from $12 million to $11 million. "It's the first sequential decline in gross concessions," he says.

However, the REIT continues to struggle in the Texas markets, particularly Dallas and Houston. During the fourth quarter, Camden lost market share to its competitors. Occupancy dropped to roughly 90% although the REIT expects to bounce back to 94% in 2005.

"The challenge in these markets is that there is almost no concession that is too large," Oden says. "We try to maintain some sense of price discipline, but we are competing against those who have very aggressively discounted. It's a continued battle withunderlying fundamentals." He says the expectation is "that we will be able to recapture and hold the occupancy levels."

At the end of the fourth quarter 2004, Camden's portfolio occupancy averaged 94.1% compared to 94.8% in the third quarter 2004 and 94.5% in the fourth quarter 2003. Fourth quarter 2004 same-property NOI increased 1.5% compared to third quarter 2004. Oden says the REIT expects to have an average occupancy of 94.6% in 2005.