Camden Property Trust Earnings Call Insights: Traffic Details and D.C. Metro Area Market
Camden Property Trust (NYSE:CPT) recently reported its first quarter earnings and discussed the following topics in its earnings conference call.
Nicholas Joseph – Citigroup: You mentioned that traffic remained strong, but can you give the actual figures for traffic relative to last year and then for D.C. specifically?
Richard J. Campo – Chairman and CEO: Yeah. Actually, our traffic – the way that we have historically calculated is on a year-over-year basis is down about 7%, although it’s kind of interesting because – and one of the things that we are in the process of doing is taking a hard look at whether we should redefine how we historically have counted traffic. The incidents of Internet traffic has gotten to be such a huge part of how people go about finding us and us transacting business where we can literally sign leases online without someone ever actually physically coming to the community and filling out a guest card. So, we are in the process of rethinking that. Clearly, we’ve got enough traffic at our communities because we’re – I think we’re doing a better job of targeting the traffic and we’ve got plenty of traffic to maintain our occupancy for the quarter above 95% and right now, we stand at about 95.6%, which is really high for our portfolio from a historical standpoint.
D. Keith Oden – President and Trust Manager: I think what I would add to that is that, is that we are now utilizing a very sophisticated big data analysis of our traffic and our spend on advertising and one of the questions that you have, when you have high occupancy and high lease conversion rates, it’s why have the traffic, if you don’t need it. We don’t need the traffic right now. So, looking at traffic numbers year-over-year, I would say, if you’re an efficient operator in using big data and you’re analyzing this with all the smart MBA types that we have looking at this data, I got to tell you, I’d rather have it go down substantially more and have occupancy go up and have our spend from an operating cost go down. So, I think if you – you’ve got be very careful about looking at traffic trends in this sort of big data Internet environment because I think they’re meaningless.
Nicholas Joseph – Citigroup: Then in terms of your development pipeline, how much cost pressure are you seeing from increasing costs and how does this affect your assumed stabilized yields…