Camden Property Trust's (CPT) blended spreads are tracking below guidance, while initial 2026 guidance came in below prior consensus, RBC Capital Markets said in a Tuesday research report.

Management indicated that positive new lease spreads are probable at some point in 2026 and Washington, D.C., leads the portfolio with an A- outlook entering the year at high occupancy

The company's potential divestment of its remaining California portfolio and reinvestment into Sunbelt markets also looks appealing, with sales expected to close mid-year.

The brokerage cut its 2026 and 2027 core funds from operations estimates by $0.12 and $0.13.

RBC cut its price target to $108 per share from $109, with a sector perform rating.

Shares of Camden Property Trust were up 1.3% in recent trading.

Price: 109.34, Change: +1.42, Percent Change: +1.32