Camden Property Trust Gains After Upgrade

NEW YORK (AP) — Camden Property Trust is facing weak demand for its rental apartments, but will have enough cash on hand to pay its debt obligations and dividends through next year, an analyst said, upgrading the real estate investment trust to "Neutral" from "Underperform."

Shares of Camden Property Trust gained $1.08, or 5 percent, to $22.80 in morning trading.

Robert W. Baird analyst Paula Poskon also lowered the company's price target by $2 to $22, nearly flat with its closing price Wednesday of $21.71. However, said she would buy the shares if they fell below $18.

She lowered her 2009 funds from operations (FFO) estimate by 16 cents to $3.17 per share and her 2010 FFO estimate by 30 cents to $3.07 per share to reflect ongoing weakness in demand for the company's rental housing.

FFO, which adds such items as amortization and depreciation back to net income, is considered a key measure of strength for real estate investment trusts because it provides a more accurate picture of cash performance.