Camden Property Trust

Methodology

Camden Property Trust is a REIT where EPS has limited meaning—FFO (Funds From Operations) is the proper earnings metric for multifamily real estate. Depreciation distorts GAAP earnings while FFO better reflects operating cash generation. Investors should use FFO-based valuation methods rather than traditional P/E ratios for this REIT.

Methodology

PEG ratios based on EPS are inappropriate for Camden—FFO growth is the relevant metric for REIT valuation. The apartment operator typically delivers low-single-digit FFO growth from rent increases and occupancy optimization. Multifamily REITs trade more on cap rates and dividend yields than earnings multiples given their income-focused investment profile.

Methodology

Camden pays a substantial dividend yielding 3-4%, making total return analysis important, though PEGY using EPS is still flawed for REITs. The company's dividend payout represents 60-70% of FFO, providing income stability and growth potential. Investors should evaluate total return using FFO growth plus dividend yield rather than EPS-based metrics.