Camden Property Trust (NYSE:CPT) Q4 2022 Earnings Call Transcript

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So we are prepared to do that. We are expect to be first in line to pursue evictions, but we just know that it’s going to be some lag between, okay, we have lifted the moratorium, now you can begin the process, which in some cases, can take 30 days to 90 days depending on the jurisdiction. So it will be — I think even after March 31, it will be a little bit of a drag in terms of time to get our real estate back. The flip side of that is, is that we think that once the gig is up for the non — for the rent strikers that they may choose to just move out voluntarily before we evict them, because they know there’s the end is in sight and that’s something that they haven’t had to contemplate for the last two years.

Chandni Luthra: Thank you for all that detail.

Operator: Our next question comes from Rich Anderson with SMBC. Please go ahead.

Rich Anderson: Hey. Good morning our there. Thanks for hanging with us.

Ric Campo: Hi, Rich.

Rich Anderson: So you are driving around the country, I am curious to know how is the market clearing that gets you to where you are at with revenue growth at 5.1% versus last year, obviously, we are all expecting deceleration. But is these landlords like yourself and others kind of sort of slow playing it, because of the uncertainty that lies ahead or are you seeing some sort of behavioral shifts with residents that’s causing the market to clear — where it’s clearing and it kind of all comes down to market rental rate growth, what you are assuming for this year at 3%. Is there a chance that we do have this soft landing or no recession or whatever you want to call it, if that market rent growth number could be something much higher than 3%?

Ric Campo: Sure. That’s why we have a range, right? I think and what the upside in our guidance could clearly be occupancy. I mean if you have a very positive — the job number today was eye-popping, obviously. And if you — if the Fed can thread the needle and keep job growth going and have a soft landing, whether it’s a landing and you keep the consumer going then, yeah, I think, our — you have two parts of upside in that guidance. One would be the rate, right, the 3%. The other would be we probably beat our occupancy numbers. And the occupancy number is probably the one that is the — when you think about — when I think about those numbers, the earning is the earn-in, the 3%, that’s what most market pundits are putting out there. And then the occupancies where we could be more — could be too conservative given an outcome that you just — that I just described and so there are two places where you could beat and those are really the two.

Rich Anderson: So I guess the question is, is this proactive from you or are you seeing behavioral shifts from your residents that are landing you where you are at now? MAA said they are not seeing any behavioral shifts with the residents that they are really more focused on the macro and that’s what’s driving where there is landing right now, is that a consistent theme for you guys?

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