July 31 (Reuters) -

Camden Property Trust ( CPT ) raised its full-year core funds from

operations (FFO) forecast on Thursday, benefiting from rising

rental rates amid a shrinking supply of homes.

Shares of the Houston-based real estate investment trust

rose 1.8% in after-hours trading.

Higher interest rates and persistent inflation have deterred

prospective homebuyers, steering them toward rental options,

while affordable housing demand has increased due to a shortage

of single-family homes.

Camden owns and manages about 60,000 apartment units across

the United States through more than 175 properties.

The company now expects core FFO for 2025 to be between

$6.76 and $6.86 per share, compared to its previous forecast of

$6.63 and $6.93 per share.

Core adjusted FFO, a key performance measure for REITs, for

the second quarter ended June 30, was $1.43 per share, compared

with analysts' average estimate of $1.69 per share, according to

data compiled by LSEG.