-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
CPT reported Q1 2026 FFO of $1.70 per share, in line with consensus, while total revenue of $389M declined 1.0% Y/Y, also meeting expectations. Same property cash NOI fell 0.7% Y/Y with revenue growth of 0.2% and expense growth of 1.9%, reflecting pricing pressure from new supply deliveries across Sunbelt markets. Management expects 2026 to be a "below-average year for pricing power" as blended lease spreads deteriorated to -1.4% from +0.1% in the prior year, with new lease spreads worsening to -5.2% from -3.1%. For full-year 2026, management guides same property NOI growth of -2.50% to +1.50%, indicating potential negative growth. The weakest markets include Atlanta (-7.4% NOI), Nashville (-7.1%), and Houston (-3.7%), while Southeast FL (+4.8%) was strongest. CPT maintains $3.9B in total debt with $882M available liquidity, though cash position remains low at $41M. We believe supply pressures will persist through 2026, limiting rental rate growth potential.