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As a reminder, Camden's complete second quarter 2012 earnings release is available in the Investor Relations section of our website at camdenliving.com and it includes reconciliations to non-GAAP financial measures, which will be discussed on this call.Joining me today are Ric Campo, Camden's Chairman and Chief Executive Officer; Keith Oden, President; and Dennis Steen, Chief Financial Officer. Our call today is scheduled for one hour as another multifamily company will be doing their call right behind ours. As a result, we ask that you limit your questions to two with one follow-up and rejoin the queue if you have additional questions. If we are unable to speak with everyone in the queue today, we'd be happy to respond to additional questions by phone or email after the call concludes. At this time, I'll turn the call over to Ric Campo. Ric Campo Good morning to most of you on the call, except these close folks. The band Train's hit Maybe This Will Be My Year was surely on the minds of our onsite teams as they prepare their 2012 operating budget. After the first two quarters, I suspect most of them, if not all, have dropped the Maybe part. The apartment business is great. In spite of slower job growth than we'd like, our markets are growing jobs faster than the national average keeping demand strong. New supply is not a threat. Camden residents are doing very well. Their incomes have increased from $63,000 to over $71,000 annually over the last year, reducing the percentage of rent income from 18.4% to 17.7%. Our residents have the capacity to pay more rent, even with the large increases that they have already experienced. Half of our markets have yet to reach peak rent levels that we achieved in 2008. Rents are still a bargain in many of our markets.
I salute our teams for making the most of a very strong environment. It's easy to get complex in an environment like this.During the quarter, we acquired two properties for $100 million, at cap rates in the low 5s. The exclusivity period for acquisitions has expired for our fund. These properties and future acquisitions will be wholly owned by Camden. Our capital recycling program for the rest of the year will include sales of $350 million of properties, with an average age of 23 years, and cap rates in the 6s. Our $551 million development communities in lease-up and under construction continued to outperform our expectations. We expect the stabilized returns to be in the 7% to 8% range, which is 50 basis points higher due to higher rents, faster leasing, and lower construction costs. We plan on starting 1,237 apartments in four properties, totaling $290 million by the end of the year, of returns in the same range as the communities that I just previously discussed. The plan on continuing prefunding our development investment, with the combination of ATM equity issuance and unsecured debt. We have raised $233 million of equity through the ATM program during the second and third quarters. We have a target range of 4.5 times to 5.5 times debt-to-EBITDA. We will continue to strengthen our balance sheet, and improve the quality of our portfolio as we go forward. I would like now to turn the call over now to Keith Oden, our President and Chief Operating Officer, I guess. Keith Oden Chief President. Ric Campo Chief something. Keith Oden I always wanted to be Chief of something. Thanks Rick. Compared to our expectations so far this year, our onsite teams have gotten off to a remarkably good start. After a quarter like this, it's kind of tempting to just acknowledge our team members for a great quarter and move on to Q&A. With that in mind, my comments today will be brief.
Virtually every metric that we use to monitor the conditions on the ground that our community remains either very good or excellent. For the second quarter, same store average rents on new leases were up 6%, and renewals were up 8.4% for a blended increase of 7%. August renewals are trending up 8% as well, with 40% completed so far in the month.Read the rest of this transcript for free on seekingalpha.com