Camden Property Trust 2017 Annual Report CAMDEN NOMA II - WASHINGTON, DC CAMDEN PROPERTY TRUST – 2017 ANNUAL REPORT Camden’s purpose is to improve the lives of our team members, customers and shareholders, one experience at a time. Our positive corporate culture drives our Company’s success, and has resulted in better overall performance versus our peers. 2017 TOTAL SHAREHOLDER RETURN VS. MULTIFAMILY REIT PEERS (Compound Annual Growth Rate – CAGR) 13.3% 13.4% 12.0% 11.8% 8.9% 4.6% SOURCE: KEYBANC CAPITAL MARKETS CPT PEER AVG CPT PEER AVG CPT PEER AVG AS OF 12/31/17 1 YEAR 3 YEAR 10 YEAR 1 CAMDEN LINCOLN STATION - DENVER, CO 2 CAMDEN PROPERTY TRUST – 2017 ANNUAL REPORT 4Q17 NOI Contribution (Includes pro-rata share of NOI from JVs) Washington, DC Mo 17 D, CO 2 L A Raleigh, NC 7 O County, CA Cte, NC 2 S D A A 7 Ee, CA P A 5.8% D T 77 O, L 4.9% A T Houston, T 12 Tampa, L 3.8% S L 7 C C T 10 Camden maintains a high-quality, geographically diverse portfolio of apartment communities located in some of the nation’s highest growth markets. We continue to improve the quality of 14 155 our portfolio by selling older assets and MAJOR MARKETS TOTAL COMMUNITIES replacing them with newly constructed, state-of-the-art communities in dynamic cities that offer residents a great quality of life. Camden’s apartment homes feature all of the modern comforts, conveniences, services and amenities our residents have 53,033 13 YEARS come to appreciate as Living Excellence. APARTMENT HOMES AVERAGE AGE DATA AS OF 12/31/17 3 2017 HIGHLIGHTS $4.53 $3.84 FFO PER AFFO PER DILUTED SHARE DILUTED SHARE $11B $3.00 TOTAL MARKET ANNUAL DIVIDENDS CAPITALIZATION PER SHARE 95.5% $736M SAME PROPERTY CURRENT DEVELOPMENT OCCUPANCY PIPELINE 2.9% 2.2% SAME PROPERTY SAME PROPERTY REVENUE GROWTH NOI GROWTH DATA AS OF 12/31/17 4 CAMDEN PROPERTY TRUST – 2017 ANNUAL REPORT Camden’s financial position remains strong. We have one of the best balance sheets and highest credit ratings in the REIT industry, including the lowest net debt- to-EBITDA ratio in the multifamily sector. With low leverage and access to a variety of capital resources, Camden is well-positioned to grow our business and capitalize on future investment opportunities. THE CAMDEN - HOLLYWOOD, CA 2017 METRICS 4.3X 4.9X NET DEBT TO EBITDA TOTAL FIXED CHARGE RATIO COVERAGE RATIO 4.6X UNENCUMBERED REAL ESTATE AT COST TO UNSECURED DEBT RATIO CREDIT RATINGS Moody’s Fitch A3, STABLE A–, STABLE Standard & Poor’s BBB+, STABLE CAMDEN VICTORY PARK - DALLAS, TX 5 TO OUR SHAREHOLDERS THE CAMDEN - HOLLYWOOD, CA end, we acquired two additional high rise apartment 2017 HIGHLIGHTS communities in St. Petersburg, FL, and Orlando, FL, 2017 was another good year for Camden. Funds from for a total combined purchase price of approximately operations (“FFO”) totaled over $424 million or $4.53 $208 million, further enhancing our holdings in the per share, and our annual dividend rate was $3.00 Florida region. per share. Same property revenue and net operating income (“NOI”) grew 2.9% and 2.2% respectively, both Camden’s development program also creates exceeding the midpoints of our initial 2017 guidance significant value for our shareholders, and provides ranges, and Camden’s solid operating performance new state-of-the-art communities with modern translated into a 13.3% total shareholder return in technology and features for our residents. During 2017, 2017 — the highest return in the multifamily sector for we completed construction on three communities with the second year in a row. a total cost of $222 million, stabilized four communities with a total cost of $335 million and commenced Over the past several years, Camden has dramatically construction on three additional projects with a total improved the quality of its portfolio through strategic budgeted cost of $228 million. We expect to add more capital recycling, disposing of older assets and new communities to our development pipeline during acquiring newer properties with more attractive 2018, with $100 million to $300 million of new starts growth prospects. During 2017 we sold our only budgeted this year. student-housing community, Camden Miramar, located in Corpus Christi, TX, for approximately We have also focused time and effort on revitalizing $78 million, and we acquired Camden Buckhead older, well-located assets within our core portfolio, Square, a newly constructed community in Atlanta, giving our apartment homes updated interiors and GA, for approximately $58 million. Shortly after year- a fresh look and feel. Our repositioning program has 6 CAMDEN PROPERTY TRUST – 2017 ANNUAL REPORT totaled nearly $290 million over the past few years, scheduled for 2018, providing ample liquidity to fund with over 25,000 apartment homes renovated at our development and investment activities and future approximately 10% cash-on-cash returns. In 2018, we cash needs through unsecured borrowings and cash plan to expand this program to include three larger- flow from operations. scale redevelopment projects which will encompass renovations to common areas and pool decks, along with extensive upgrades to interior finishes, fixtures 2018 OUTLOOK and appliances. We believe these redevelopments Fundamentals for our business remain strong, and 2018 will also provide a strong return on capital and further should look a lot like 2017 for the apartment industry. enhance the overall quality of our portfolio. The U.S. economy continues to expand, job growth and household formations are steady, and favorable Camden has one of the best balance sheets and demographics are driving demand for rental housing. highest credit ratings in the REIT industry, including Millennials aged 20 to 34 currently number over the lowest net debt-to-EBITDA ratio in the multifamily 67 million, and they represent half of Camden’s existing sector at 4.3 times. Our financial stability provides us residents. These young adults have a higher propensity with tremendous flexibility and access to a wide variety to rent than any other age cohort, and the number of of capital resources, positioning us well to capitalize people in this age group will rise over the next several on future investment opportunities. In September years. We have also seen increasing demand for well- 2017, we raised approximately $443 million through located apartment homes from other age cohorts such the issuance of common shares at an average net as Gen Xers and Baby Boomers who have recognized price of $93.18 per share. At the end of 2017 we had the ease and convenience of apartment living as nearly $370 million of cash and cash equivalents, no compared to homeownership. balances outstanding on our $645 million unsecured credit facilities and only $175 million of debt maturities CAMDEN VICTORY PARK - DALLAS, TX 7 CAMDEN LINCOLN STATION - DENVER, CO We believe these economic and demographic factors, along with a continued low level of homeownership CLOSING rates, will drive demand for our multifamily product for Camden’s purpose is to improve the lives of our many years to come. team members, customers and shareholders, one experience at a time. We are pleased to announce The pace of multifamily completions has been steady that Camden was once again named one of over the past few years, but it has been met by strong FORTUNE’s 100 Best Companies to Work For® in demand for rental housing, allowing the new supply America, ranking #24. We also ranked highly among to be absorbed in most markets. We expect demand the best workplaces for women, diversity and to remain healthy again in 2018, and the level of Millennials, and were recognized as a “Company that new supply in most of our markets this year should be Cares” by People Magazine. Camden strives to create similar to 2017. a work environment that promotes trust, loyalty, opportunity and fun. Our dedication to each other and Overall, we expect our 2018 total portfolio same to Camden’s core values is the foundation of our unique property revenue growth will be 3.0% at the midpoint culture, and we are truly honored to be recognized once of our guidance range, slightly better than the 2.9% again for such excellence in the workplace. growth we achieved in 2017. After back-to-back years with negative same property results, our Houston On behalf of the entire Camden team, we thank you for portfolio is budgeted for 3% revenue growth in 2018. your confidence in us and your continued support of We expect to see limited revenue growth in Southeast our company. Florida, Dallas and Austin this year, as our communities there will continue to compete with new supply. The Respectfully, remainder of Camden’s markets across the country are poised for another strong year with anticipated same property revenue growth between 2% to 5% for 2018 in those markets. Richard J. Campo D. Keith Oden Chairman & CEO President 8 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2017 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 1-12110 CAMDEN PROPERTY TRUST (Exact name of registrant as specified in its charter) Texas 76-6088377 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 11 Greenway Plaza, Suite 2400 Houston, Texas 77046 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code: (713) 354-2500 Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered Common Shares of Beneficial Interest, $.01 par value New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.