Here's why Camden will exit California as it bets big on the Sun Belt

"Camden Property Trust, one of the nation's largest apartment real estate investment trusts, has long complained about California's challenging regulatory environment. Frustrations escalated to a breaking point in the early 2020s. An eviction moratorium during the COVID-19 pandemic, which effectively reduced a large share of rental revenue, left landlords largely on their own to manage operating and capital expenditure expenses during that period."

"Now the Houston-based REIT is selling its strong-performing California portfolio, banking on buyers willing to seize the opportunity by embracing that regulatory environment. Company executives told Wall Street analysts on its Friday earnings call that there's strong interest in the portfolio valued at about $1.5 billion. They expect to close a deal midyear. Camden executives downplayed the regulatory climate and operating challenges in their talk track about the properties."

"They characterized the sale as part of an ongoing portfolio management strategy that reallocates capital into higher-return, pro-growth, pro-business Sun Belt markets while continuing share repurchases. Effectively, that means states with fewer, less robust tenant protections, which developers and landlords blame for higher operating costs. Camden CEO Ric Campo provided an overview of the company's thinking, focusing on a new Colorado law Protection Against Deceptive Pricing Practices that took effect at the start of the year."

Camden Property Trust is divesting a strong-performing California apartment portfolio after regulatory pressures and revenue losses tied to the COVID-19 eviction moratorium. The eviction moratorium reduced a large share of rental revenue and left landlords responsible for operating and capital expenditure costs. The company reported strong buyer interest in the roughly $1.5 billion portfolio and expects to close a midyear deal. The sale is framed as portfolio management to reallocate capital into higher-return, pro-growth Sun Belt markets while continuing share repurchases. Camden highlighted a new Colorado law, Protection Against Deceptive Pricing Practices, which requires transparent price disclosures in areas such as utility billing.

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