Shares of Camden Property Trust (NYSE: CPT) jumped 10% in December, according to data provided by S&P Global Market Intelligence. That was a nice bounce-back month for the real estate investment trust (REIT), which was under pressure most of the year. A couple of catalysts drove shares of the apartment owner higher, including declaring its latest dividend and growing optimism that interest rates will decline in the coming months.

Last year was a more challenging year for Camden Property Trust. While the residential REIT's core funds from operations (FFO) were on track to rise by about 3.3% in 2023, that was much slower than 2022's surge of more than 22%.

One issue slowing its growth was higher interest rates. Camden expected increased interest expenses to lop $0.21 per share off its FFO in 2023. That was due to the impact of rising rates on its floating rate debt and refinancing maturing debt. For example, the company issued $500 million of 5.85% debt due in 2026 in October to repay a portion of the balance on its credit facility. That was a higher rate than the 4.2% weighted average interest rate on all its debt. The company had previously used its credit facility to retire $185.2 million of secured variable rate debt after the rate on that debt hit 7.1%.

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Source Fool.com