UPDATE: ISI Upgrades Camden Property Trust to Buy After Sunbelt Continues to Show Strength

According to a research report published today by ISI, Camden Property Trust (NYSE: CPT) is set to see continued strength through the Sunbelt and therefore, ISI is upgrading the rating to Buy.

“While Camden's markets are typically viewed as low barrier to entry, the company's operating results were similar to companies operating in “supply constrained” markets such as NYC, Boston, SF, and LA. CPT's same store revenue growth in Q4 was 6.7% which beat ESS's 6.5% gain, AVB's 6.2% figure, and EQR's 5.8% rise. One area where CPT lagged the peers was expense growth which rose 4.6% in the quarter, thereby leading to NOI growth of only 8.0% which beat EQR's 7.6% gain but was 250bp below AVB and ESS as both companies benefited in the quarter from negative expense growth,” ISI stated in the report.

ISI reiterates its $70 PT on Camden Property Trust, which close Friday at $65.12.