Fitch affirms Camden Property

Fitch Ratings said it affirmed Camden Property Trust's issuer default rating at BBB, unsecured revolving credit facility at BBB, senior notes at BBB and preferred units at BB+.

The outlook is stable.

The affirmation reflects favorable multifamily property fundamentals across the company's stabilized portfolio that should result in fixed charge coverage in the mid 2 times range, according to the agency.

The action also considers leverage in the mid 6x range and adequate risk-adjusted capitalization for the BBB rating category, in part from recent delevering equity raises, the agency noted.

Concerns include modest property-level underperformance relative to other selected multifamily REITs over the long term measured by occupancy and same-store net operating income growth, due primarily to CPT owning assets in less supply-constrained markets, Fitch said.

CPT's leverage is solid for a BBB-rated multifamily REIT, the agency said, with net debt to trailing 12 months recurring operating EBITDA at 7.0x as of March 31, compared with 7.2x and 7.7x as of Dec. 31, 2010 and Dec. 31, 2009, respectively.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.