Las Vegas apartment owner’s profit falls

Jennifer Shubinski

Wednesday, Nov. 12, 2003 | noon

Camden Property Trust, which owns 34 apartment complexes in the Las Vegas area, reported a profit of $5.9 million, or 14 cents per share, for the third quarter, down from $10.2 million, or 24 cents, in the year-ago quarter.

Revenue grew slightly to $104.8 million.

Funds from operations, or FFO, fell to $32.8 million, or 76 cents per share, from $36.7 million, or 83 cents per share, in the year ago quarter. The results met Wall Street expectations.

Kim Callahan, spokeswoman for the Houston-based company, said the profit declined because Camden's same-property portfolio -- comprised of about 42,000 apartment units -- experienced a decline in net operating income of 6.4 percent.

"It is a reflection of the multifamily market right now, a lack of pricing power by the landlords," she said. "After Sept. 11 (2001) there has not been much job growth, and there has been soft demand for apartment projects." Callahan said rents in the company's portfolio have been down nationwide. That, coupled with the growth of expenses, such as utilities and taxes, contributed to the decline.

While the company is experiencing a soft market nationwide, Las Vegas is fairing better than other cities, she said.

Las Vegas' overall net operating income was down 5.8 percent, less than the company's nationwide average.

"In Las Vegas, you guys are luckily one of the bright spots in the economy,' Callahan said.

She said the Las Vegas market is not oversupplied and has been boosted by job growth and continued in-migration.

"Supply hasn't ticked up or down, it's a manageable number," Callahan said.