Camden Property Trust (NYSE: CPT) stock fell over 0.8% (as of 1:50 pm GMT-4; Source: Google finance) on lower than expected results for the third quarter of FY 19.
CPT in the third quarter of FY 19 has reported the adjusted funds from operations per share of $1.29, while adjusted revenue growth of 7.8 percent to $260.67 million in the third quarter of FY 19. For the fourth quarter of 2019, the company expects EPS per share to be $0.37-$0.41 and FFO per share to be in the range of $1.21-$1.25
For FY 19, the company expects EPS per share to be $1.63-$1.67, FFO per share to be in the range of $5 to $5.04, Same property revenue growth to be in the range of 3.4% to 3.6%, Same property expenses growth to be in the range of 2.10% to 2.30% and NOI growth to be in the range of 4.05% to 4.45%. The Company has raised the forecast for 2019 same property revenue growth on the back of better than expected occupancy rates achieved during the third quarter and continued strength in occupancy rates expected during the fourth quarter. The Company has also revised guidance for 2019 same property expense growth due to lower than expected property tax rates, mainly in its Texas markets.
Meanwhile, during the third quarter, the construction has started at Camden Hillcrest in San Diego, CA. Subsequent to quarter-end, lease-up was completed at Camden McGowen Station in Houston, TX.
Additionally, the company has recently issued $300 million senior unsecured notes under its existing shelf registration statement. These notes were for the term of 30-years and were offered to the public at 99.941% of par value with a coupon of 3.350%. CMD has received net proceeds from this issue of approximately $296.6 million, net of underwriting discounts and other estimated offering expenses.
In late October 2019, the company had redeemed all of its 4.78% $250 million senior notes due 2021 and prepaid its 4.38% $45.3 million secured mortgage notes due 2045. Related with these transactions, the company will record an approximate $12 million charge in the fourth quarter of 2019.
In addition, the company had declared a third quarter cash dividend of $0.80 per share to holders of record as of September 30, 2019 of its Common Shares of Beneficial Interest, which was paid on October 17, 2019.