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CAMDEN PROPERTY TRUST - Annual Report: 2023 (Form 10-K)









































150.58 172.90 137.56 160.85 

Properties Under ConstructionRaleigh, North Carolina 789 2 789 2 Houston, Texas 377 2 377 2 Charlotte, North Carolina— — 387 1 Phoenix, Arizona — — 397 1 Total Properties Under Construction1,166 4 1,950 6 Total Properties59,800 176 60,652 178 
(1)Excludes leasing costs, which are expensed as incurred.
Properties Under Development
Our consolidated balance sheet at December 31, 2023 included approximately $486.9 million related to properties under development and land. Of this amount, approximately $214.0 million related to our projects currently under construction. In addition, we had approximately $272.9 million primarily invested in land held for future development related to projects we currently expect to begin construction.
Communities Under Construction. At December 31, 2023, we had four properties in various stages of construction as follows:
($ in millions)
Properties and Locations
Number of
Homes		Estimated
Cost		Cost
Incurred		Included in
Properties
Under
Development		Estimated
Date of
Construction
Completion		Estimated
Date of
Stabilization
Communities Under Construction
Camden Durham (1)
420 $145.0 $126.8 $79.3 2Q244Q25
Durham, NC
Camden Woodmill Creek (2)
189 75.0 64.5 25.6 3Q242Q25
The Woodlands, TX
Camden Village District369 138.0 68.4 68.4 2Q254Q26
Raleigh, NC
Camden Long Meadow Farms188 80.0 40.7 40.7 3Q242Q25
Richmond, TX
Total1,166 $438.0 $300.4 $214.0 
(1)Property in lease-up and was 17% leased at January 31, 2024.
(2)Property in lease-up and was 15% leased at January 31, 2024.
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    Development Pipeline Communities. At December 31, 2023, we had the following communities undergoing development activities:
($ in millions)
Properties and Locations
Projected
Homes
Total Estimated
Cost (1)
Cost to Date
Camden South Charlotte420 $153.0 $32.9 
Charlotte, NC
Camden Blakeney349 145.0 26.0 
Charlotte, NC
Camden Baker435 165.0 33.1 
Denver, CO
Camden Nations393 175.0 39.0 
Nashville, TN
Camden Gulch480 260.0 49.1 
Nashville, TN
Camden Paces III350 100.0 22.5 
Atlanta, GA
Camden Highland Village II300 100.0 10.4 
Houston, TX
Camden Arts District354 150.0 45.5 
Los Angeles, CA
Camden Downtown II271 145.0 14.4 
Houston, TX
3,352 $1,393.0 $272.9 
(1)Represents our estimate of total costs we expect to incur on these projects. However, forward-looking statements are not guarantees of future performance, results, or events. Although we believe these expectations are based upon reasonable assumptions, future events rarely develop exactly as forecasted and estimates routinely require adjustment.


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Geographic Diversification
    At December 31, 2023 and 2022, our real estate assets by various markets, excluding depreciation, were as follows:
 
($ in thousands)20232022
Houston, Texas$1,960,825 14.9 %$1,878,221 14.5 %
Washington, D.C. Metro1,633,201 12.4 1,619,826 12.5 
Dallas/Fort Worth, Texas1,117,909 8.5 1,076,941 8.3 
Atlanta, Georgia1,036,351 7.9 1,012,209 7.8 
Phoenix, Arizona899,802 6.8 872,695 6.8 
Orlando, Florida775,393 5.9 761,013 5.9 
Southeast Florida757,434 5.7 740,263 5.7 
Charlotte, North Carolina731,254 5.5 690,767 5.4 
Tampa/St.Petersburg, Florida723,695 5.5 711,552 5.5 
Austin, Texas705,347 5.3 691,830 5.4 
Raleigh, North Carolina699,142 5.3 618,157 4.8 
Los Angeles/Orange County, California687,949 5.2 810,109 6.3 
Denver, Colorado620,916 4.7 611,147 4.7 
San Diego/Inland Empire, California472,464 3.6 463,825 3.6 
Nashville, Tennessee370,445 2.8 357,318 2.8 
Total$13,192,127 100.0 %$12,915,873 100.0 %
Property-Level NOI (1)
Property NOI, as reconciled above, is detailed further into the categories below for the year ended December 31, 2023 as compared to 2022:
 
 Number of
Homes at		Year Ended
December 31,		Change
($ in thousands)12/31/202320232022$%
Property revenues:
Same store communities47,423 $1,238,564 $1,178,247 $60,317 5.1 %
Non-same store communities10,824 264,396 200,479 63,917 31.9 
Development and lease-up communities1,553 3,851 — 3,851 *
Dispositions/Other Property Analysis
Dispositions/other property NOI decreased approximately $7.4 million for the year ended December 31, 2023 as compared to the same period in 2022. The decrease was comprised of lower NOI related to dispositions of approximately $1.4 million and lower other property NOI of approximately $6.0 million for the year ended December 31, 2023 as compared to the same period in 2022. The decrease in NOI related to dispositions was due to the disposition of two operating properties in 2023, and the disposition of one operating property in March 2022. The lower other property NOI was primarily due to a decrease in revenues in 2023 related to approximately $7.6 million of net below market leases recognized during the year ended December 31, 2022 as a result of the acquisition of the Funds in April 2022. The decrease in other property NOI was partially offset by higher revenues of approximately $1.1 million related to business interruptions received during the year ended December 31, 2023.
Non-Property Income
 
($ in thousands)20232022$%
Fee and asset management$3,451 $5,188 $(1,737)(33.5)%
Interest and other income879 3,019 (2,140)(70.9)
Income/(loss) on deferred compensation plans15,398 (19,637)35,035 *
Total non-property income$19,728 $(11,430)$31,158 (272.6)%
*Not a meaningful percentage.
Fee and asset management income from property management, asset management, construction, and development activities at our joint ventures and our third-party construction projects decreased approximately $1.7 million for the year ended December 31, 2023 as compared to 2022. The decrease was primarily due to the consolidation of the Funds on April 1, 2022, and no longer earning the related fee and asset management income. The decrease was also due to slightly lower fees earned related to a decrease in third-party construction activity during 2023 as compared to 2022.
Interest and other income decreased approximately $2.1 million for the year ended December 31, 2023, as compared to 2022. The decrease was primarily due to a higher earn-out received in 2022 as compared to 2023 related to a technology joint venture sold in September 2020.
Our deferred compensation plans recognized income of approximately $15.4 million in 2023 and incurred a loss of approximately $19.6 million in 2022. The changes were related to the performance of the investments held in deferred compensation plans for participants and were directly offset by the expense/(benefit) related to these plans, as discussed below.
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Other Expenses
($ in thousands)20232022$%
Property management$33,706 $28,601 $5,105 17.8 %
Fee and asset management1,717 2,516 (799)(31.8)
General and administrative
62,506 60,413 2,093 3.5 
Interest133,395 113,424 19,971 17.6 
Depreciation and amortization
574,813 577,020 (2,207)(0.4)
Expense/(benefit) on deferred compensation plans15,398 (19,637)35,035 *
Total other expenses$821,535 $762,337 $59,198 7.8 %
Total real estate assets$ $ Accounts receivable – affiliates  Other assets, net  Cash and cash equivalents  Restricted cash  Total assets$ $ Liabilities and equityLiabilitiesNotes payableUnsecured$ $ Secured  Accounts payable and accrued expenses  Accrued real estate taxes  Distributions payable  Other liabilities  Total liabilities$ $ 
Commitments and contingencies (Note 14)
Equity
Common shares of beneficial interest; $ par value per share; shares authorized; and issued; and outstanding at December 31, 2023 and 2022, respectively
  Additional paid-in capital  Distributions in excess of net income attributable to common shareholders()()
Treasury shares, at cost ( and common shares, at December 31, 2023 and 2022, respectively)
()()Accumulated other comprehensive loss()()Total common equity$ $ Non-controlling interests  Total equity$ $ Total liabilities and equity$ $ 
See Notes to Consolidated Financial Statements.
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CAMDEN PROPERTY TRUST
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
 
 Year Ended December 31,
(in thousands, except share amounts)202320222021
Property revenues$ $ $ 
Property expenses
Property operating and maintenance$ $ $ 
Real estate taxes   
Total property expenses$ $ $ 
Non-property income
Fee and asset management$ $ $ 
Interest and other income   
Income/(loss) on deferred compensation plans () 
Total non-property income/(loss)$ $()$ 
Other expenses
Property management$ $ $ 
Fee and asset management   
General and administrative   
Interest   
Depreciation and amortization   
Expense/(benefit) on deferred compensation plans () 
Total other expenses$ $ $ 
Loss on early retirement of debt()  
Gain on sale of operating properties, including land   
Gain on acquisition of unconsolidated joint venture interests—  — 
Equity in income of joint ventures   
Income from continuing operations before income taxes$ $ $ 
Income tax expense()()()
Net income$ $ $ 
Less income allocated to non-controlling interests()()()
Net income attributable to common shareholders$ $ $ 
Total earnings per share – basic   
Total earnings per share – diluted   
Weighted average number of common shares outstanding – basic   
Weighted average number of common shares outstanding – diluted   
Consolidated Statements of Comprehensive IncomeNet income$ $ $ Other comprehensive incomeUnrealized loss on cash flow hedging activities()  Unrealized gain (loss) and unamortized prior service cost on post retirement obligation()  Reclassification of net loss on cash flow hedging activities, prior service cost and net loss on post retirement obligation   Comprehensive income$ $ $ Less income allocated to non-controlling interests()()()
See Notes to Consolidated Financial Statements.
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CAMDEN PROPERTY TRUST
CONSOLIDATED STATEMENTS OF EQUITY (Continued)
 
 Common Shareholders  
(in thousands, except per share amounts)Common
shares of
beneficial
interest		Additional
paid-in capital		Distributions
in excess of
net income		Treasury
shares, at cost		Accumulated
other
comprehensive
loss		Non-controlling
interests		Total
equity
Equity, December 31, 2022$ $ $()$()$()$ $ 
Net income   
Other comprehensive income  
Net share awards   
Employee share purchase plan   
Conversion/ redemption of operating partnership units (3 shares) ()()
Cash distributions declared to equity holders ($4.00 per share)()()()
Other()()
Equity, December 31, 2023$ $ $()$()$()$ $ 
See Notes to Consolidated Financial Statements.


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CAMDEN PROPERTY TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 Year Ended December 31,
(in thousands)202320222021
Cash flows from operating activities
Net income$ $ $ 
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization   
Loss on early retirement of debt   
Gain on sale of operating properties, including land()()()
Gain on acquisition of unconsolidated joint venture interests () 
Distributions of income from joint ventures   
Equity in income of joint ventures ()()
Share-based compensation   
Net change in operating accounts and other   
Net cash from operating activities$ $ $ 
Cash flows from investing activities
Development and capital improvements, including land$()$()$()
Acquisition of operating properties, including joint venture interests, net of cash acquired ()()
Net proceeds from sales of operating properties, including land   
Increase in non-real estate assets()()()
Other()() 
Net cash from investing activities$()$()$()
Cash flows from financing activities
Borrowings on unsecured revolving credit facility$ $ $ 
Repayments on unsecured revolving credit facility()() 
Repayment of notes payable, including prepayment penalties()() 
Proceeds from notes payable   
Distributions to common shareholders and non-controlling interests()()()
Proceeds from issuance of common shares   
Payment of deferred financing costs()()()
Other   
Net cash from financing activities$()$ $ 
Net increase (decrease) in cash, cash equivalents, and restricted cash () 
Cash, cash equivalents, and restricted cash, beginning of year   
Cash, cash equivalents, and restricted cash, end of year$ $ $ 
See Notes to Consolidated Financial Statements.

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CAMDEN PROPERTY TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
 
 Year Ended December 31,
(in thousands)202320222021
Reconciliation of cash, cash equivalents, and restricted cash to the Consolidated Balance Sheet
Cash and cash equivalents
$ $ $ 
Restricted cash
   
Total cash, cash equivalents, and restricted cash, end of year
   
Supplemental information
Cash paid for interest, net of interest capitalized$ $ $ 
Cash paid for income taxes   
Supplemental schedule of noncash investing and financing activities
Distributions declared but not paid$ $ $ 
Value of shares issued under benefit plans, net of cancellations   
Accrual associated with construction and capital expenditures   
Acquisition of joint venture interests:
Mortgage debt assumed   
Other liabilities   
See Notes to Consolidated Financial Statements.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
multifamily properties comprised of apartment homes across the United States. Of the properties, properties were under construction, and will consist of a total of apartment homes when completed. We also own land holdings which we may develop into multifamily communities in the future.
% and % of the outstanding common limited partnership units and the sole % general partnership interest in each of these consolidated operating partnerships. million, and $ million and recognized revenue related to net below-market leases of approximately $ million and $ million for the years ended December 31, 2022 and 2021, respectively.
During the years ended December 31, 2022 and 2021, the weighted average amortization periods for in-place leases was approximately eight months and nine months, respectively, and the weighted average amortization periods for net below-market leases was approximately seven months and ten months, respectively.
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million, $ million, and $ million for the years ended December 31, 2023, 2022, and 2021, respectively. Capitalized real estate taxes were approximately $ million, $ million, and $ million for the years ended December 31, 2023, 2022, and 2021, respectively.
Where possible, we stage our construction to allow leasing and occupancy during the construction period, which we believe minimizes the duration of the lease-up period following completion of construction. Our accounting policy related to properties in the development and leasing phase is to expense all operating costs associated with completed apartment homes. We capitalize renovation and improvement costs we believe extend the economic lives of depreciable property. Capital expenditures subsequent to initial construction are capitalized and depreciated over their estimated useful lives.
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with all other commercial leases averaging longer lease terms. We anticipate property revenue from existing leases as follows:
(in millions)
Year ended December 31,Operating Leases
2024$ 
2025 
2026 
2027 
2028 
Thereafter 
Total$ 
Credit Risk. We believe there is no significant concentration of credit risk due to the number of residents, the types and diversity of submarkets in which our properties operate, and the collection terms.
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 million and $ million at December 31, 2023 and 2022, respectively. These investments are included in other assets, net in our consolidated balance sheets and we did not record any impairments during the years ended December 31, 2023, 2022, or 2021 relating to these investments.% of our total property revenues and total non-property income, excluding income (loss) on deferred compensation plans, for each of the years ended December 31, 2023, 2022, and 2021.
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million for each of the years ended December 31, 2023 and 2022, and 2021. These securities, which include share awards granted and units convertible into common shares, were excluded from the diluted earnings per share calculation as they are anti-dilutive. $ $ Amount allocated to participating securities()()()Net income attributable to common shareholders – basic$ $ $ Earnings per common share calculation – diluted
Income from continuing operations attributable to common shareholders, net of amount allocated to participating securities
$ $ $ Income allocated to common units from continuing operations   Net income attributable to common shareholders – diluted$ $ $ 
Total earnings per common share – diluted
$ $ $ Weighted average number of common shares outstanding – basic   Incremental shares issuable from assumed conversion of:Share awards granted   Common units   Weighted average number of common shares outstanding – diluted   
million (the "2023 ATM program"), in amounts and at times as we determine, into the existing trading market at current market prices as well as through negotiated transactions. Actual sales from time to time may depend on a variety of factors including, among others, market conditions, the trading price of our common shares, and determinations by management of the appropriate sources of funding for us. We intend to use the proceeds from any sale of our common shares under the 2023 ATM program for general corporate purposes, which may include reducing future borrowings under our unsecured revolving credit facility, the repayment of other indebtedness, the redemption or other repurchase of outstanding debt or equity securities, funding for development activities, and financing for acquisitions.
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million (the "2022 ATM program"). In May 2023, we terminated the 2022 ATM program and did not sell any shares under this program.
In August 2021, we created an ATM share offering program through which we could, but had no obligation to, sell common shares for an aggregate offering price of up to $ million (the "2021 ATM program"). In May 2022, we terminated the 2021 ATM program with an aggregate offering amount of approximately $ million remaining available for sale and, upon termination, no further common shares were available for sale.
We have a share repurchase plan approved by our Board of Trust Managers which allows for the repurchase of up to $ million of our common equity securities through open-market purchases, block purchases, and privately negotiated transactions. As of the date of this filing, there were no repurchases and the dollar value of our common equity securities authorized to be repurchased under this program remains at $ million.
We currently have an automatic shelf registration statement which allows us to offer, from time to time, common shares, preferred shares, debt securities, or warrants. Our Amended and Restated Declaration of Trust provides we may issue up to million shares of beneficial interest, consisting of million common shares and million preferred shares. At December 31, 2023, we had approximately million common shares outstanding, net of treasury shares and shares held in our deferred compensation arrangements, and preferred shares outstanding.
In the first quarter of 2024, the Company's Board of Trust Managers declared a first quarter dividend of $ per common share to our common shareholders of record as of March 29, 2024.
% of our consolidated multifamily apartment homes were held in Camden Operating, L.P. ("Camden Operating" or the "operating partnership"). Camden Operating has million outstanding common limited partnership units and as of December 31, 2023, we held approximately % of the outstanding common limited partnership units and the sole % general partnership interest of the operating partnership. The remaining common limited partnership units, comprising approximately million units, are primarily held by former officers, directors, and investors of Paragon Group, Inc., which we acquired in 1997. Each common limited partnership unit is redeemable for one common share of Camden Property Trust or cash at our election. Holders of common limited partnership units are not entitled to rights as shareholders prior to redemption of their common limited partnership units. No member of our management owns Camden Operating common limited partnership units.
At December 31, 2023, approximately % of our consolidated multifamily apartment homes were held in Camden Summit Partnership, L.P. (the "Camden Summit Partnership"). Camden Summit Partnership has million outstanding common limited partnership units and as of December 31, 2023, we held approximately % of the outstanding common limited partnership units and the sole % general partnership interest of Camden Summit Partnership. The remaining common limited partnership units, comprising approximately million units, are primarily held by former officers, directors, and investors of Summit Properties Inc., which we acquired in 2005. Each common limited partnership unit is redeemable for one common share of Camden Property Trust or cash at our election and holders of common limited partnership units are not entitled to rights as shareholders prior to redemption of their common limited partnership units. No member of our management owns Camden Summit Partnership common limited partnership units.
million in the aggregate as of December 31, 2023. We currently have a $ million two-year unsecured floating rate term loan with an unrelated third party which supports the negative tax capital accounts.
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% of our adjusted taxable income. As a REIT, we generally will not be subject to federal income tax on our taxable income at the corporate level to the extent such income is distributed to our shareholders annually. If our taxable income exceeds our dividends in a tax year, REIT tax rules allow us to designate dividends from the subsequent tax year in order to avoid current taxation on undistributed income. If we fail to qualify as a REIT in any taxable year, we may be subject to federal and state income taxes for such year. In addition, we may not be able to requalify as a REIT for the four subsequent taxable years and may be subject to federal and state income taxes in those years as well. Historically, we have incurred only state and local income, franchise, and excise taxes. Taxable income from non-REIT activities managed through taxable REIT subsidiaries is subject to applicable federal, state, and local income taxes. Our operating partnerships are flow-through entities and are not subject to federal income taxes at the entity level.
We have recorded income, franchise, and excise taxes in the consolidated statements of income and comprehensive income for the years ended December 31, 2023, 2022, and 2021 as income tax expense. Income taxes for the years ended December 31, 2023, 2022, and 2021, primarily related to state income tax and federal taxes on certain of our taxable REIT subsidiaries. We have significant temporary or permanent differences or tax credits associated with our taxable REIT subsidiaries.
For income tax purposes, distributions to common shareholders are characterized as ordinary income, capital gains, or return of capital.
 $ $ Long-term capital gain   Return of capital   Unrecaptured Sec. 1250 gain   Total$ $ $ 
The carrying value of net assets reported in our consolidated financial statements at December 31, 2023 exceeded the tax basis by approximately $ billion.
Income Tax Expense. We had income tax expense of approximately $ million, $ million, and $ million for the tax years ended December 31, 2023, 2022, and 2021, respectively, which was comprised mainly of state income and franchise taxes related to our taxable REIT subsidiaries.
Income Tax Expense – Deferred. For the years ended December 31, 2023, 2022, and 2021, our deferred tax expense was not significant.
The income tax returns of Camden Property Trust and its subsidiaries are subject to examination by federal, state, and local tax jurisdictions for years 2020 through 2022. Tax attributes generated in years prior to 2020 are also subject to challenge in any examination of those tax years. We believe we have uncertain tax positions or unrecognized tax benefits requiring disclosure as of and for the periods presented.
Tax Reform. The 2022 Inflation Reduction Act ("the 2022 Act") was passed on August 16, 2022, which is generally applicable for taxable years beginning after December 31, 2022, and included changes to the corporate income tax system. As a REIT, we are generally exempt from the majority of the provisions under the 2022 Act and do not believe the provisions will have a material impact on our consolidated financial statements.




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acres in Charlotte, North Carolina for an aggregate cost of approximately $ million; approximately acres of land in Nashville, Tennessee for approximately $ million; and approximately acres of land in Richmond, Texas for approximately $ million.
During the year ended December 31, 2021, we acquired for future development purposes approximately acres of land in Nashville, Tennessee for $ million; approximately acres of land in Denver, Colorado for $ million; approximately acres of land in The Woodlands, Texas for $ million; and approximately acres of land in St. Petersburg, Florida for $ million.
Asset Acquisition of Operating Properties. We did not acquire any operating properties during the year ended December 31, 2023. On April 1, 2022, we purchased the remaining % ownership interests in two unconsolidated discretionary investment funds (collectively, "the Funds" or "the acquisition of the Funds") for cash consideration of approximately $ billion, after adjusting for our assumption of approximately $515.0 million of existing secured mortgage debt of the Funds which remained outstanding. As a result of this acquisition, we now own 100% ownership interests in multifamily communities comprised of units located in Houston, Austin, Dallas, Tampa, Raleigh, Orlando, Washington D.C., Charlotte, and Atlanta. Prior to the acquisition, we accounted for our % ownership interests in each of these Funds in accordance with the equity method of accounting.
We accounted for this transaction as an asset acquisition and remeasured our previously held % ownership interests in the Funds to fair value at the acquisition date. As a result of this remeasurement, we recognized a gain of approximately $474.1 million. Upon consolidation, the total consideration was allocated to assets and liabilities based on relative fair value, resulting in an increase in assets comprised of $ billion of real estate assets, $ million of in-place leases and $ million of other assets and an increase in liabilities made up of $ million of secured debt, $ million of other liabilities, and approximately $ million of net below market leases.
During the year ended December 31, 2021, we acquired operating property comprised of apartment homes located in Dallas, Texas for approximately $ million in October and operating property comprised of apartment homes located in St. Petersburg, Florida for approximately $ million in August. In June 2021, we also acquired operating property comprised of apartment homes located in Franklin, Tennessee for approximately $ million and operating property comprised of apartment homes located in Nashville, Tennessee for approximately $ million.
Sale of Operating Properties. During the year ended December 31, 2023, we sold operating properties comprised of an aggregate of apartment homes located in Costa Mesa, California for an aggregate of approximately $ million and recognized a gain of approximately $ million. In February 2024, we sold operating property comprised of apartment homes located in Atlanta, Georgia for approximately $ million.
During the year ended December 31, 2022, we sold operating property comprised of apartment homes located in Largo, Maryland for approximately $ million and recognized a gain of approximately $ million. During the year ended December 31, 2021, we sold operating properties comprised of an aggregate of apartment homes located in Houston, Texas for an aggregate of approximately $ million and recognized a gain of approximately $ million and one property comprised of apartment homes, located in Laurel, Maryland for approximately $ million and recognized a gain of approximately $ million.
% ownership interest in the Funds, and accounted for these investments under the equity method.
2022 (1)
2021Total revenues$ $ $ Net income   
Equity in income (2)
   
(1)
(2)
Prior to the acquisition of the remaining interests in the Funds, we earned fees for property and asset management, construction, development, and other services related to the Funds, and we eliminated fee income for services provided to the
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million and $ million for the years ended December 31, 2022 and 2021, respectively. After the acquisition of the Funds on April 1, 2022, we no longer earn these fees.
% Term loan, due 2024$ $ 
% Term loan, due 2024
  
% Unsecured revolving credit facility
  $ $ Senior unsecured notes
% Notes, due 2023
$ $ 
% Notes, due 2024
  
% Notes, due 2024
  
% Notes, due 2026 (3)
  
% Notes, due 2028
  
% Notes, due 2029 (1)
  
% Notes, due 2030
  
% Notes, due 2049
  $ $ Total unsecured notes payable$ $ Secured notes  Master Credit Facilities
% - % Conventional Mortgage Notes, due 2026 - 2028
$ $ 
% Variable Rate Notes, due 2026
  
% Variable Rate Construction Note, due 2024
  
% note, due 2028
  Total secured notes payable$ $ 
Total notes payable (2)
$ $ Value of real estate assets, at cost, subject to secured notes$ $ 
(1)
(2) million and $ million are included in senior unsecured and secured notes payable as of December 31, 2023 and 2022, respectively.
At December 31, 2023 we had a $ million, % unsecured term loan which matured in August 2024, with one option to extend at our election to August 2025. In January 2024, we utilized a portion of the net proceeds from the notes due January 15, 2034 (the "2034 Notes") to repay the outstanding balance. See further discussion below. We also have a $ billion unsecured revolving credit facility which matures in August 2026, with two options to extend the facility at our election for two consecutive six-month periods and to expand the facility up to three times by up to an additional $500 million upon satisfaction of certain conditions. The interest rates on our unsecured revolving credit facility and term loan are based upon, at our option, (a) the daily or the one-, three-, or six- months Secured Overnight Financing Rate ("SOFR") plus, in each case, a spread based on our credit rating, or (b) a base rate equal to the higher of: (i) the Federal Funds Rate plus 0.50%, (ii) Bank of America, N.A.'s price rate, (iii) Term SOFR plus 1.0%, and (iv) 1.0%. Advances under our unsecured revolving credit facility may be priced at the scheduled rates, or we may enter into bid rate loans with participating banks at rates below the scheduled rates. These bid
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or less and may not exceed the lesser of $ million or the remaining amount available under our unsecured revolving credit facility. Our unsecured revolving credit facility and term loan are subject to customary financial covenants and limitations. We believe we are in compliance with all such financial covenants and limitations as of December 31, 2023 and through the date of this filing.
Our unsecured revolving credit facility provides us with the ability to issue up to $ million in letters of credit. While our issuance of letters of credit does not increase our borrowings outstanding under our revolving credit facility, it does reduce the amount available. At December 31, 2023, we had outstanding letters of credit totaling $ million and approximately $ billion available under our unsecured revolving credit facility.
In November 2023, we issued $ million aggregate principal amount of % senior unsecured notes due November 3, 2026 (the "2026 Notes") under our existing shell registration statement. The 2026 Notes were offered to the public % of their face amount with a stated rate of % and a yield to maturity of %. After deducting underwriting discounts and other offering expenses, the net proceeds from the sale of the 2026 Notes was approximately $ million. Interest on the 2026 Notes is payable semi-annually on May 3 and November 3, beginning May 3, 2024. We may redeem the 2026 Notes, in whole or in part, at anytime at a redemption price equal to the principal amount and accrued interest of the notes being redeemed, plus a make-whole provision. If, however, we redeem the 2026 Notes on or after one month prior to their maturity date, the redemption price will equal 100% of the principal amount of the 2026 Notes to be redeemed plus accrued and unpaid interest on the amount being redeemed to the redemption date. The 2026 Notes are direct, senior unsecured obligations and rank equally with all of our other unsecured and unsubordinated indebtedness. At December 31, 2023, the carrying value of the notes was $ million, which included the cumulative fair value adjustment of $ million. We used the net proceeds to repay the outstanding balance on our unsecured revolving credit facility.
In connection with the 2026 Notes, we initiated an interest rate swap agreement with an aggregate notional amount of $ million. Under the interest rate swap agreement, we pay a floating interest rate of daily compounded SOFR plus 1.12%. See Note 10, "Derivative Financial Instruments and Hedging Activities," for further discussion of the interest rate swap designated as a fair value hedge.
As a result of the acquisition of the Funds on April 1, 2022, we assumed approximately $ million of secured mortgage loans with maturity dates ranging from 2024 to 2028 and effective interest rates on the date of acquisition ranging from % to %. These secured mortgage loans consisted of a variable rate construction loan, a fixed rate cross-collateralized and cross-defaulted note between three operating properties, and two cross-collateralized and cross-defaulted master credit facilities with Fannie Mae, which included both fixed conventional mortgage notes and variable rate notes.
In connection with the assumed secured mortgage loans discussed above, we recorded an approximate $ million fair value adjustment as a decrease to the note balances, which is being amortized over the respective debt terms as an increase to interest expense. Due to the repayment of the secured variable rate notes discussed below, approximately $ million of the unamortized fair value adjustment was written-off and expensed as part of the loss on the early retirement of debt. During each of the years ended December 31, 2023 and 2022, we also recorded amortization of the fair value adjustment of approximately $ million. The remaining unamortized fair value adjustment at December 31, 2023 was approximately $ million.
In May 2023, we utilized draws our unsecured revolving credit facility to retire our $ million secured variable rate notes due in 2024 and 2026. As a result of the early repayments, we recorded a $ million loss on early retirement of debt in our consolidated statements of income and comprehensive income, which was comprised of approximately $ million of prepayment penalties and fees and approximately $ million for the write-off of unamortized fair value adjustments.
In June 2023, we utilized draws on our unsecured revolving credit facility to repay the principal amount of our % senior unsecured notes payable, which matured on June 15, 2023, for a total of $ million, plus accrued interest.
At December 31, 2023 we had outstanding floating rate debt of approximately $ million, which includes the 2026 Notes which have been converted to floating rate debt through the issuance of the interest rate swap discussed above. We had floating rate debt of approximately $ million at December 31, 2022, which includes balances outstanding under our unsecured revolving credit facility. The weighted average interest rate on such debt was approximately % and % at December 31, 2023 and 2022, respectively.
Our indebtedness had a weighted average maturity of years at December 31, 2023.
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  %
2025 (5)
  2026  2027  2028  Thereafter   Total$  %
(1)
(2)
(3)
(4)
In January 2024, we issued $ million aggregate principal amount of % senior unsecured notes due January 15, 2034 under our existing shell registration statement. The 2034 Notes were offered to the public % of their face amount with a stated rate of % and a yield to maturity of %. After deducting underwriting discounts and other offering expenses, the net proceeds from the sale of the 2034 Notes was approximately $ million. Interest on the 2034 Notes is payable semi-annually on January 15 and July 15, beginning July 15, 2024. We may redeem the 2034 Notes, in whole or in part, at anytime at a redemption price equal to the principal amount and accrued interest of the notes being redeemed, plus a make-whole provision. If, however, we redeem the 2034 Notes on or after three months prior to their maturity date, the redemption price will equal 100% of the principal amount of the 2034 Notes to be redeemed plus accrued and unpaid interest on the amount being redeemed to the redemption date. The 2034 Notes are direct, senior unsecured obligations and rank equally with all of our other unsecured and unsubordinated indebtedness. In January 2024, we utilized a portion of the net proceeds from the 2034 Notes to repay the $ million, % unsecured term loan due in August 2024 with a one year extension option to August 2025.
In January 2024, we utilized cash on hand to repay the principal amount of our % senior unsecured notes payable, which matured on January 15, 2024, for a total of $ million, plus accrued interest.
million was recognized in other comprehensive income. There were no unrealized gains or losses recognized for the years ended December 31, 2022 and 2021. During the year ended December 31, 2023, approximately $ million was reclassified from AOCI as an increase to interest expense for derivative financial instruments settled in prior periods. Approximately $ million was reclassified for each of the years ended December 31, 2022 and 2021.
Fair Value Hedges. From time to time we utilize interest rate swaps to achieve an additional level of floating rate debt relative to fixed rate debt as we deem appropriate. We designate fixed to floating interest rate swaps as fair value hedges. The changes in fair values of these derivative instruments and the offsetting changes in fair values of the underlying hedged debt due to changes in the relevant benchmark interest rates are recorded in interest expense. Refer to Note 9, "Notes Payable" for additional information on our long-term debt.
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million which exposes us to interest rate fluctuations on our 2026 Notes.This interest rate swap was designated and qualified as a fair value hedging instrument. At December 31, 2023, the carrying value of the notes was $ million, which included the cumulative fair value adjustment of $ million. There were no outstanding fair value hedges at December 31, 2022 or 2021.
million shares ("Share Limit") was authorized under the 2018 Share Plan. Shares issued or to be issued are counted against the Share Limit as set forth as (1) to for every share award, excluding stock options and share appreciation rights, granted, and (2) 1.0 to for every share of stock option or share appreciation right granted. As of December 31, 2023, there were approximately million common shares available under the 2018 Share Plan, which would result in approximately million shares which could be granted pursuant to full value awards conversion ratios as defined under the plan.
Total compensation cost for share awards charged against income was approximately $ million, $ million, and $ million for 2023, 2022, and 2021, respectively. Total capitalized compensation cost for share awards was approximately $ million, $ million, and $ million for the years ended December 31, 2023, 2022, and 2021, respectively.
 %
(1)We use a secured incremental borrowing rate, as defined by ASC 842 based on an estimated secured rate with applicable adjustments, as most of our lease contracts do not provide a readily determinable implicit rate.
 2025 2026 2027 2028 Thereafter Less: discount for time value()Lease liability as of December 31, 2023$ 
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 $ $ $ $ $ $ $ $—            Camden Copper Square        —            Camden Foothills        —            Camden Legacy        —            Camden Montierra        —            Camden North End I        — Camden North End II        —            Camden Old Town Scottsdale        —            Camden Pecos Ranch        —            Camden San Marcos        —            Camden San Paloma        —            Camden Sotelo        —            Camden Tempe        — Camden Tempe II        — CALIFORNIA       Los Angeles/Orange County           Camden Crown Valley        —            Camden Glendale        —            Camden Harbor View        —            Camden Main and Jamboree        —            The Camden         —        San Diego/Inland Empire           Camden Hillcrest        —            Camden Landmark        —            Camden Old Creek        —            Camden Sierra at Otay Ranch        —            Camden Tuscany        —            Camden Vineyards        — COLORADO       Denver           Camden Belleview Station        —            Camden Caley        —            Camden Denver West$ $ $ $ $ $ $ $ $—            Camden Flatirons        —            Camden Highlands Ridge        —            Camden Interlocken        —            Camden Lakeway        —            Camden Lincoln Station        —            Camden RiNo        — WASHINGTON DC METRO           Camden Ashburn Farm        —            Camden College Park        —            Camden Dulles Station        —            Camden Fair Lakes        —            Camden Fairfax Corner        —            Camden Fallsgrove        —             Camden Grand Parc        —            Camden Lansdowne        —            Camden Monument Place        —            Camden NoMa        —            Camden NoMa II        —            Camden Potomac Yard        —            Camden Roosevelt        —            Camden Shady Grove        —            Camden Silo Creek        —            Camden South Capitol                    Camden Washingtonian        — FLORIDA       Southeast Florida           Camden Atlantic        —            Camden Aventura        —            Camden Boca Raton        —            Camden Brickell        —            Camden Doral        —            Camden Doral Villas        —            Camden Las Olas        —            Camden Plantation        —            Camden Portofino         —        Orlando           Camden Hunter's Creek        —            Camden Lago Vista$ $ $ $ $ $ $ $ $—            Camden Lake Eola        —            Camden LaVina        —            Camden Lee Vista        —            Camden North Quarter        —            Camden Orange Court        —            Camden Thornton Park        —             Camden Town Square        —             Camden Waterford Lakes                    Camden World Gateway        —        Tampa/St. Petersburg           Camden Bay        — Camden Central        —            Camden Montague        —            Camden Pier District        —            Camden Preserve        —            Camden Royal Palms        —            Camden Visconti                    Camden Westchase Park        — GEORGIA       Atlanta           Camden Brookwood        —            Camden Buckhead        —            Camden Buckhead Square        —            Camden Creekstone        —            Camden Deerfield        —            Camden Dunwoody        —            Camden Fourth Ward        —            Camden Midtown Atlanta        —             Camden Paces        —            Camden Peachtree City        —            Camden Phipps        —            Camden Shiloh        —            Camden St. Clair        —            Camden Stockbridge        —            Camden Vantage        — NORTH CAROLINA       Charlotte           Camden Ballantyne$ $ $ $ $ $ $ $ $—            Camden Cotton Mills        —            CoWork by Camden        —            Camden Dilworth        —            Camden Fairview        —            Camden Foxcroft         —            Camden Foxcroft II        —            Camden Gallery        —            Camden Grandview        —            Camden Grandview II        —            Camden NoDa        —            Camden Sedgebrook        —            Camden South End        —            Camden Southline                    Camden Stonecrest        —            Camden Touchstone        —        Raleigh           Camden Asbury Village                    Camden Carolinian        —            Camden Crest        —            Camden Governor's Village        —            Camden Lake Pine        —            Camden Manor Park        —            Camden Overlook        —            Camden Reunion Park        —            Camden Westwood        — TENNESSEE NashvilleCamden Franklin Park        — Camden Music Row        — TEXAS       Austin           Camden Amber Oaks        —            Camden Amber Oaks II        —            Camden Brushy Creek                    Camden Cedar Hills        —            Camden Gaines Ranch        —            Camden Huntingdon        —            Camden La Frontera $ $ $ $ $ $ $ $ $—            Camden Lamar Heights        —            Camden Rainey Street        —            Camden Shadow Brook                    Camden Stoneleigh        —        Dallas/Fort Worth           Camden Addison        —            Camden Belmont        —            Camden Buckingham        —            Camden Centreport        —            Camden Cimarron        —            Camden Design District        —             Camden Farmers Market        — Camden Greenville        —            Camden Henderson        —            Camden Legacy Creek        —            Camden Legacy Park        —            Camden Panther Creek                    Camden Riverwalk        —            Camden Valley Park        —            Camden Victory Park         —        Houston           Camden City Centre        —            Camden City Centre II        — Camden Cypress Creek         Camden Cypress Creek II        — Camden Downs at Cinco Ranch        — Camden Downtown        —            Camden Grand Harbor                    Camden Greenway        —            Camden Heights                    Camden Highland Village        —            Camden Holly Springs        —            Camden McGowen Station        —            Camden Midtown        —            Camden Northpointe                    Camden Plaza        —            Camden Post Oak        —            Camden Royal Oaks$ $ $ $ $ $ $ $ $—            Camden Royal Oaks II         —            Camden Spring Creek        —            Camden Stonebridge        —            Camden Sugar Grove        —            Camden Travis Street        —            Camden Vanderbilt        —            Camden Whispering Oaks        —            Camden Woodson Park                    Camden Yorktown         Total current communities:$ $ $ $ $ $ $ $ $ Communities under construction:       Name / location
Camden Durham (1)
        Durham, NC
$— $ $— $— $ $ $ $ $— 
Camden Woodmill Creek (1)
        The Woodlands, TX
—  — —     — Camden Village District
        Raleigh, NC—  — —   —  — Camden Long Meadow Farms
        Richmond, TX—  — —     — Total communities under construction:$ $ $ $ $ $ $ $ $— Development pipeline communities:       Name/locationCamden South Charlotte,
        Charlotte, NC $— $ $— $— $ $ $— $ $— Camden Blakeney
        Charlotte, NC—  — —   —  — Camden Baker
        Denver, CO—  — —   —  — Camden Nations
        Nashville, TN—  — —   —  — Camden Gulch
        Nashville, TN—  — —   —  — Camden Paces III
        Atlanta, GA—  — —   —  — Camden Highland Village II
        Houston, TX—  — —   —  — Camden Arts District
        Los Angeles, CA$— $ $— $— $ $ $— $ $— Camden Downtown II
        Houston, TX—  — —   —  — Total development pipeline communities:$ $ $ $ $ $ $ $ $— Corporate$ $ $ $ $ $ $ $ $— N/A$ $ $ $ $ $ $ $ $— TOTAL$ $ $ $ $ $ $ $ $ 
(1)
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 $ $ Additions during period:Acquisition of operating properties   Development and repositions   Improvements   Deductions during period:Cost of real estate sold()()()Balance, end of period$ $ $ 
 
The changes in accumulated depreciation for the years ended December 31:
 
 202320222021Balance, beginning of period$ $ $ Depreciation of real estate assets   Dispositions()()()Balance, end of period$ $ $ 
The aggregate cost for federal income tax purposes at December 31, 2023 was $ billion.
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(c)$ $ 

(a)    The aggregate cost at December 31, 2023 for federal income tax purposes was approximately $.
(b)    This loan currently bears interest at % on any unpaid principal balance.
(c)    Payments will consist of annual interest and principal payments from October 1, 2021 to .

 $ $ Deductions:Collections of principal()()()Balance, end of period$ $ $ 
S-3

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