Is Camden Property Trust a Stock to Buy and Hold Forever? Here's Why It Could Be.
Camden Property Trust (NYSE: CPT) is a real estate investment trust, or REIT, that specializes in multifamily properties. Its core property type is apartment communities in or near major U.S. cities. Including properties currently under construction, the company owns about 60,800 apartment homes in its portfolio.The business grows through both acquisitions and developments, both of which can be excellent ways to create value for shareholders. It also strategically adds value to its properties through redevelopment, which includes renovations, upgrades, and added amenities, allowing the company to increase its rental income.Like most REITs, Camden Property Group is sensitive to interest rate fluctuations. Without getting too deep into the economics, REITs tend to perform well when rates are falling, and tend to underperform the market when rates rise. But overall, this is a business designed to produce steady rental income, even in challenging times.Continue reading
Camden Property Trust (NYSE: CPT) is a real estate investment trust, or REIT, that specializes in multifamily properties. Its core property type is apartment communities in or near major U.S. cities. Including properties currently under construction, the company owns about 60,800 apartment homes in its portfolio.
The business grows through both acquisitions and developments, both of which can be excellent ways to create value for shareholders. It also strategically adds value to its properties through redevelopment, which includes renovations, upgrades, and added amenities, allowing the company to increase its rental income.
Like most REITs, Camden Property Group is sensitive to interest rate fluctuations. Without getting too deep into the economics, REITs tend to perform well when rates are falling, and tend to underperform the market when rates rise. But overall, this is a business designed to produce steady rental income, even in challenging times.
