Real Estate Investment Trust Camden Property Trust Underperforms S&P 500 Over 5 Years

Camden Property Trust (CPT), a multifamily real estate investment trust, has delivered a total return of 40% over the past five years, turning a $1,000 investment into $1,405. While this growth is respectable, it pales in comparison to the S&P 500's 90.7% return over the same period, which WOULD have grown $1,000 to $1,907.

The REIT's portfolio of 173 properties and 59,000 apartment homes faces challenges in scaling further. Recent quarterly results showed modest 2% year-over-year revenue growth to $396.5 million, while Core adjusted funds from operations (FFO) declined slightly to $187.6 million.

High property prices and expensive rents have contributed to Camden's uninspiring growth trajectory. The company's performance raises questions about whether it represents an undervalued opportunity or justifiably discounted stock in today's market.