HOUSTON--(BUSINESS WIRE)--
Camden Property Trust (NYSE: CPT) announced that its funds from
operations ("FFO") for the first quarter of 2009 totaled $0.88 per
diluted share or $51.6 million, as compared to $0.89 per diluted share
or $52.3 million for the same period in 2008. The Company reported net
income attributable to common shareholders ("EPS") of $6.2 million or
$0.11 per diluted share for the first quarter of 2009, as compared to
$14.9 million or $0.27 per diluted share for the same period in 2008.
EPS for the three months ended March 31, 2008 included a $0.13 per
diluted share impact from gain on sale of properties, including
discontinued operations. A reconciliation of net income attributable to
common shareholders to FFO is included in the financial tables
accompanying this press release.
Same-Property Results
For the 42,670 apartment homes included in consolidated same-property
results, first quarter 2009 same-property net operating income ("NOI")
declined 3.8% compared to the first quarter of 2008, with revenues
declining 0.5% and expenses increasing 5.5%. On a sequential basis,
first quarter 2009 same-property NOI declined 2.3% compared to the
fourth quarter of 2008, with revenues declining 1.1% and expenses
increasing 0.9% compared to the prior quarter. Same-property physical
occupancy levels for the portfolio averaged 93.6% during the first
quarter of 2009, compared to 93.7% in both the first quarter and fourth
quarter of 2008.
The Company defines same-property communities as communities owned and
stabilized as of January 1, 2008, excluding properties held for sale and
communities under redevelopment. A reconciliation of net income
attributable to common shareholders to net operating income and
same-property net operating income is included in the financial tables
accompanying this press release.
Development Activity
During the first quarter, the Company completed construction on Camden
Dulles Station in Oak Hill, VA. As of March 31, 2009, construction had
been completed on all of Camden's wholly-owned development projects,
with no material obligations remaining to fund. The Company currently
has six wholly-owned apartment communities completed and in lease-up:
Camden Potomac Yard in Arlington, VA, a $104.6 million project that is
currently 87% leased; Camden Summerfield in Landover, MD, a $62.6
million project that is currently 86% leased; Camden Orange Court in
Orlando, FL, a $45.5 million project that is currently 73% leased;
Camden Cedar Hills in Austin, TX, a $23.6 million project that is
currently 95% leased; Camden Whispering Oaks in Houston, TX, a $27.4
million project that is currently 87% leased; and Camden Dulles Station
in Oak Hill, VA, a $72.2 million project that is currently 57% leased.
The Company also had one joint venture community which was completed and
in lease-up: Camden College Park in College Park, MD, a $127.9 million
project that is currently 76% leased.
The Company has two joint venture communities currently under
construction and in lease-up: Camden Amber Oaks in Austin, TX, a $40.0
million joint venture project that is currently 39% leased; and
Braeswood Place in Houston, TX, a $48.6 million joint venture project
that is currently 25% leased. Camden has two additional joint venture
communities currently under construction in Houston, TX: Camden Travis
Street, a $39.0 million project, and Belle Meade, a $33.2 million
project. Both projects are scheduled for initial occupancy in mid- to
late-2009.
Properties Held for Sale
At March 31, 2009, Camden had one operating community held for sale:
Camden West Oaks, a 671-home apartment community in Houston, TX.
Financing Activities
During the quarter, Camden retired approximately $50.5 million of
secured mortgage debt and $40.0 million of unsecured medium-term notes,
using proceeds from its unsecured Line of Credit. Subsequent to
quarter-end, the Company obtained a $420 million secured credit
facility. [See press release dated April 17, 2009 for more details].
Debt Repurchases
During the first quarter, Camden repurchased and retired $7.4 million of
senior unsecured notes, resulting in a $0.2 million gain on early
retirement of debt. Subsequent to quarter-end, Camden repurchased and
retired an additional $10.3 million of senior unsecured notes.
On April 28, 2009, Camden completed a Tender Offer for certain
outstanding notes. The aggregate principal amount accepted for purchase
totaled $169.5 million. The Company intends to repurchase and retire
these notes on May 1, 2009 using cash balances on hand and funds from
its unsecured Line of Credit. [See press release dated April 28, 2009
for more details].
Liquidity
As of March 31, 2009, Camden had $241 million outstanding on its $600
million unsecured Line of Credit. Subsequent to quarter-end, the Company
repaid all balances outstanding under the Line of Credit with proceeds
from a $420 million secured credit facility. Upon completion of the
Tender Offer, Camden will have $82 million of debt maturities remaining
in 2009 and $186 million of debt maturities in 2010.
Earnings Guidance
Camden updated its earnings guidance for 2009 based on its current and
expected views of the apartment market and general economic conditions.
Full-year 2009 FFO is expected to be $3.20 to $3.45 per diluted share,
and full-year 2009 EPS is expected to be $0.12 to $0.37 per diluted
share. Second quarter 2009 earnings guidance is $0.82 to $0.86 per
diluted share for FFO and $0.05 to $0.09 per diluted share for EPS. The
Company's second quarter 2009 earnings guidance includes a $0.02 per
diluted share gain on early retirement of debt recognized in April 2009,
but excludes other potential future gains on the sale of properties and
the early retirement of debt. Camden intends to update its earnings
guidance to the market on a quarterly basis.
The Company's 2009 earnings guidance is based on projections of
same-property revenue declines between 0.5% and 2.5%, expense growth
between 5.0% and 6.25%, and NOI declines between 4.5% and 7.5%. A
reconciliation of expected net income attributable to common
shareholders to expected FFO is included in the financial tables
accompanying this press release.
Conference Call
The Company will hold a conference call on Friday, May 1, 2009 at 11:00
a.m. Central Time to review its first quarter 2009 results and discuss
its outlook for future performance. To participate in the call, please
dial (866) 843-0890 (domestic) or (412) 317-9250 (international) by
10:50 a.m. Central Time and enter passcode: 9409451, or join the live
webcast of the conference call by accessing the Investor Relations
section of the Company's website at camdenliving.com. Supplemental
financial information is available in the Investor Relations section of
the Company's website under Earnings Releases or by calling Camden's
Investor Relations Department at (800) 922-6336.
Annual Meeting of Shareholders
Camden's Annual Meeting of Shareholders will be held on May 6, 2009 at
the Renaissance Hotel, 6 East Greenway Plaza, Houston, Texas, at 10:00
a.m., Central Time. The Company's proxy statement, 10-K, and Annual
Report to Shareholders are available in the Investor Relations section
of the company's website at camdenliving.com.
If you wish to receive hard copies of these documents, please contact
Camden's Investor Relations Department at ir@camdenliving.com.
Forward-Looking Statements
In addition to historical information, this press release contains
forward-looking statements under the federal securities law. These
statements are based on current expectations, estimates and projections
about the industry and markets in which Camden operates, management's
beliefs, and assumptions made by management. Forward-looking statements
are not guarantees of future performance and involve certain risks and
uncertainties which are difficult to predict.
About Camden
Camden Property Trust, an S&P 400 Company, is a real estate company
engaged in the ownership, development, acquisition, management and
disposition of multifamily apartment communities. Camden owns interests
in and operates 182 properties containing 63,269 apartment homes across
the United States. Upon completion of four properties under development,
the Company's portfolio will increase to 64,329 apartment homes in 186
properties. Camden was recently named by FORTUNE(R) Magazine for the
second consecutive year as one of the "100 Best Companies to Work For"
in America.
For additional information, please contact Camden's Investor Relations
Department at (800) 922-6336 or (713) 354-2787 or access our website at camdenliving.com.
CAMDEN OPERATING RESULTS
(In thousands, except per share and property data
amounts)
(Unaudited) Three Months Ended
March 31,
OPERATING DATA 2009 2008
Property revenues
Rental revenues $ 136,500 $ 134,263
Other property revenues 20,532 17,201
Total property revenues 157,032 151,464
Property expenses
Property operating and 42,283 39,179
maintenance
Real estate taxes 18,532 17,281
Total property expenses 60,815 56,460
Non-property income
Fee and asset management 2,031 2,412
income
Interest and other income 735 1,333
Income (loss) on deferred (4,152 ) (8,541 )
compensation plans
Total non-property income (1,386 ) (4,796 )
(loss)
Other expenses
Property management 4,929 4,900
Fee and asset management 1,135 1,725
General and administrative 8,232 7,960
Interest 32,245 32,573
Depreciation and amortization 43,980 41,516
Amortization of deferred 817 734
financing costs
Expense (benefit) on deferred (4,152 ) (8,541 )
compensation plans
Total other expenses 87,186 80,867
Income from continuing
operations before gain on
sale of properties, including
land, gain on early 7,645 9,341
retirement of debt, equity in
income (loss) of joint
ventures, and distributions
on perpetual preferred units
Gain on sale of properties, - 1,106
including land
Gain on early retirement of 166 -
debt
Equity in income (loss) of 408 (47 )
joint ventures
Distributions on perpetual (1,750 ) (1,750 )
preferred units
Income from continuing
operations before income 6,469 8,650
taxes
Income tax expense - current (299 ) (273 )
Income from continuing 6,170 8,377
operations
Income from discontinued 585 1,680
operations
Gain on sale of discontinued - 6,127
operations
Net income 6,755 16,184
Less net income allocated to (521 ) (1,269 )
noncontrolling interest
Net income attributable to $ 6,234 $ 14,915
common shareholders
CONDENSED CONSOLIDATED
STATEMENTS OF OTHER
COMPREHENSIVE INCOME
Net income $ 6,755 $ 16,184
Other comprehensive income
(loss)
Unrealized loss on cash flow (2,936 ) (19,425 )
hedging activities
Reclassification of net
losses on cash flow hedging 5,276 1,330
activities
Comprehensive income (loss) 9,095 (1,911 )
Less net income allocated to (521 ) (1,269 )
noncontrolling interest
Comprehensive income (loss)
attributable to common $ 8,574 ($3,180 )
shareholders
PER SHARE DATA
Net income attributable to $ 0.11 $ 0.27
common shareholders - basic
Net income attributable to 0.11 0.27
common shareholders - diluted
Income from continuing
operations attributable to 0.10 0.13
common shareholders - basic
Income from continuing
operations attributable to 0.10 0.13
common shareholders - diluted
Weighted average number of
common and common equivalent
shares outstanding:
Basic 55,552 54,965
Diluted 56,047 55,625
Note: Please refer to the following pages for definitions and reconciliations of
all non-GAAP financial measures presented in this document.
CAMDEN FUNDS FROM OPERATIONS
(In thousands, except per share and property
data amounts)
(Unaudited) Three Months Ended
March 31,
FUNDS FROM OPERATIONS 2009 2008
Net income attributable to $ 6,234 $ 14,915
common shareholders
Real estate depreciation and
amortization from continuing 43,010 40,653
operations
Real estate depreciation from - 1,285
discontinued operations
Adjustments for unconsolidated 1,916 1,539
joint ventures
Income allocated to 421 1,156
noncontrolling interest
(Gain) loss on sale of
operating properties, net of - (1,106 )
taxes
(Gain) loss on sale of - (6,112 )
discontinued operations
Funds from operations - $ 51,581 $ 52,330
diluted
PER SHARE DATA
Funds from operations - $ 0.88 $ 0.89
diluted
Cash distributions 0.70 0.70
Weighted average number of
common and common equivalent
shares outstanding:
FFO - diluted 58,471 58,544
PROPERTY DATA
Total operating properties 182 181
(end of period) (a)
Total operating apartment
homes in operating properties 63,269 62,918
(end of period) (a)
Total operating apartment 50,688 51,763
homes (weighted average)
Total operating apartment
homes - excluding discontinued 50,017 48,756
operations (weighted average)
(a)Includes joint ventures and properties held for sale.
Note: Please refer to the following pages for definitions and
reconciliations of all non-GAAP financial measures presented in this
document.
CAMDEN BALANCE SHEETS
(In thousands)
(Unaudited) Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,
2009 2008 2008 2008 2008
ASSETS
Real estate
assets, at
cost
Land $ 746,935 $ 744,059 $ 745,085 $ 755,200 $ 749,664
Buildings and 4,466,296 4,447,587 4,442,067 4,474,749 4,435,787
improvements
5,213,231 5,191,646 5,187,152 5,229,949 5,185,451
Accumulated (1,023,466 ) (981,049 ) (952,883 ) (935,640 ) (907,643 )
depreciation
Net operating
real estate 4,189,765 4,210,597 4,234,269 4,294,309 4,277,808
assets
Properties
under 258,239 264,188 323,300 333,419 358,994
development
and land
Investments in 15,158 15,106 15,663 14,773 12,526
joint ventures
Properties
held for sale, 20,696 20,653 9,495 36,152 23,299
including land
Total real 4,483,858 4,510,544 4,582,727 4,678,653 4,672,627
estate assets
Accounts
receivable - 36,105 37,000 36,868 36,556 36,166
affiliates
Notes
receivable
Affiliates 58,481 58,109 58,240 53,849 52,331
Other - 8,710 8,710 8,710 8,710
Other assets, 84,905 103,013 111,847 117,599 116,010
net (a)
Cash and cash 7,256 7,407 29,517 1,242 947
equivalents
Restricted 4,437 5,559 4,971 4,687 5,325
cash
Total assets $ 4,675,042 $ 4,730,342 $ 4,832,880 $ 4,901,296 $ 4,892,116
LIABILITIES
AND
SHAREHOLDERS'
EQUITY
Liabilities
Notes payable
Unsecured $ 2,151,492 $ 2,103,187 $ 2,096,285 $ 2,400,027 $ 2,351,006
Secured 680,631 729,209 727,235 539,328 559,952
Accounts
payable and 73,250 82,575 86,668 77,441 90,779
accrued
expenses
Accrued real 19,113 23,600 40,664 30,664 17,769
estate taxes
Other 137,397 149,554 124,915 129,471 146,817
liabilities(b)
Distributions 43,136 42,936 42,968 42,965 42,942
payable
Total 3,105,019 3,131,061 3,118,735 3,219,896 3,209,265
liabilities
Commitments
and
contingencies
Minority
interests
Perpetual
preferred 97,925 97,925 97,925 97,925 97,925
units
Shareholders'
equity
Common shares
of beneficial 666 660 660 660 660
interest
Additional
paid-in 2,242,940 2,237,703 2,232,436 2,230,119 2,227,256
capital
Distributions
in excess of
net income (345,481 ) (312,309 ) (238,301 ) (272,294 ) (250,845 )
attributable
to common
shareholders
Notes
receivable (291 ) (295 ) (298 ) (302 ) (306 )
secured by
common shares
Treasury
shares, at (462,751 ) (463,209 ) (463,108 ) (463,574 ) (463,574 )
cost
Accumulated
other (48,716 ) (51,056 ) (17,423 ) (15,955 ) (34,218 )
comprehensive
loss (c)
Total common
shareholders' 1,386,367 1,411,494 1,513,966 1,478,654 1,478,973
equity
Noncontrolling 85,731 89,862 102,254 104,821 105,953
interest
Total
shareholders' 1,472,098 1,501,356 1,616,220 1,583,475 1,584,926
equity
Total
liabilities
and $ 4,675,042 $ 4,730,342 $ 4,832,880 $ 4,901,296 $ 4,892,116
shareholders'
equity
(a) includes:
net deferred $ 10,061 $ 10,505 $ 11,388 $ 9,434 $ 10,287
charges of:
value of in
place leases - - - - $ 62
of:
(b) includes:
deferred $ 2,402 $ 2,640 $ 2,940 $ 2,747 $ 2,575
revenues of:
(above)/below
market leases - - - - ($6 )
of:
distributions
in excess of
investments in $ 31,318 $ 30,105 $ 27,977 $ 26,022 $ 25,065
joint ventures
of:
fair value
adjustment of $ 48,693 $ 51,068 $ 17,511 $ 15,955 $ 34,218
derivative
instruments:
(c) Represents the fair value adjustment of derivative instruments and gain on post
retirement obligations.
CAMDEN NON-GAAP FINANCIAL MEASURES
DEFINITIONS & RECONCILIATIONS
(In thousands, except per share amounts)
(Unaudited)
This document contains certain non-GAAP financial measures management believes
are useful in evaluating an equity REIT's performance. Camden's definitions and
calculations of non-GAAP financial measures may differ from those used by other
REITs, and thus may not be comparable. The non-GAAP financial measures should
not be considered as an alternative to net income as an indication of our
operating performance, or to net cash provided by operating activities as a
measure of our liquidity.
FFO
The National Association of Real Estate Investment Trusts ("NAREIT") currently
defines FFO as net income attributable to common shares computed in accordance
with generally accepted accounting principles ("GAAP"), excluding gains or
losses from depreciable operating property sales, plus real estate depreciation
and amortization, and after adjustments for unconsolidated partnerships and
joint ventures. Camden's definition of diluted FFO also assumes conversion of
all dilutive convertible securities, including minority interests, which are
convertible into common equity. The Company considers FFO to be an appropriate
supplemental measure of operating performance because, by excluding gains or
losses on dispositions of operating properties and excluding depreciation, FFO
can help one compare the operating performance of a company's real estate
between periods or as compared to different companies. A reconciliation of net
income to FFO is provided below:
Three Months Ended
March 31,
2009 2008
Net income attributable to common $ 6,234 $ 14,915
shareholders
Real estate depreciation and
amortization from continuing 43,010 40,653
operations
Real estate depreciation from - 1,285
discontinued operations
Adjustments for unconsolidated joint 1,916 1,539
ventures
Income allocated to noncontrolling 421 1,156
interest
(Gain) loss on sale of operating - (1,106 )
properties, net of taxes
(Gain) loss on sale of discontinued - (6,112 )
operations
Funds from operations - diluted $ 51,581 $ 52,330
Weighted average number of common and
common equivalent shares outstanding:
EPS diluted 56,047 55,625
FFO diluted 58,471 58,544
Net income attributable to common $ 0.11 $ 0.27
shareholders - diluted
FFO per common share - diluted $ 0.88 $ 0.89
Expected FFO
Expected FFO is calculated in a method consistent with historical FFO, and is
considered an appropriate supplemental measure of expected operating performance
when compared to expected net income (EPS). A reconciliation of the ranges
provided for expected net income per diluted share to expected FFO per diluted
share is provided below:
2Q09 Range 2009 Range
Low High Low High
Expected net income attributable to
common shareholders per share - $ 0.05 $ 0.09 $ 0.12 $ 0.37
diluted
Expected real estate depreciation 0.73 0.73 2.92 2.92
Expected adjustments for 0.04 0.04 0.14 0.14
unconsolidated joint ventures
Expected income allocated to 0.00 0.00 0.02 0.02
noncontrolling interest
Expected FFO per share - diluted $ 0.82 $ 0.86 $ 3.20 $ 3.45
Note: This table contains forward-looking statements. Please see the paragraph
regarding forward-looking statements earlier in this document.
Net Operating Income (NOI)
NOI is defined by the Company as total property income less property operating
and maintenance expenses less real estate taxes. The Company considers NOI to be
an appropriate supplemental measure of operating performance to net income
because it reflects the operating performance of our communities without
allocation of corporate level property management overhead or general and
administrative costs. A reconciliation of net income to net operating income is
provided below:
Three Months Ended
March 31,
2009 2008
Net income attributable to common $ 6,234 $ 14,915
shareholders
Fee and asset management income (2,031 ) (2,412 )
Interest and other income (735 ) (1,333 )
Income (loss) on deferred compensation 4,152 8,541
plans
Property management expense 4,929 4,900
Fee and asset management expense 1,135 1,725
General and administrative expense 8,232 7,960
Interest expense 32,245 32,573
Depreciation and amortization 43,980 41,516
Amortization of deferred financing 817 734
costs
Expense (benefit) on deferred (4,152 ) (8,541 )
compensation plans
Gain on sale of properties, including - (1,106 )
land
Gain on early retirement of debt (166 ) -
Equity in income (loss) of joint (408 ) 47
ventures
Distributions on perpetual preferred 1,750 1,750
units
Net income allocated to noncontrolling 521 1,269
interest
Income tax expense - current 299 273
Income from discontinued operations (585 ) (1,680 )
Gain on sale of discontinued - (6,127 )
operations
Income from discontinued operations - -
allocated to common units
Net Operating Income (NOI) $ 96,217 $ 95,004
"Same Property" Communities $ 80,872 $ 84,086
Non-"Same Property" Communities 11,669 8,964
Development and Lease-Up Communities 2,736 (55 )
Redevelopment Communities 704 758
Dispositions / Other 236 1,251
Net Operating Income (NOI) $ 96,217 $ 95,004
EBITDA
EBITDA is defined by the Company as earnings before interest, taxes,
depreciation and amortization, including net operating income from discontinued
operations, excluding equity in income of joint ventures, gain on sale of real
estate assets, and net income allocated to noncontrolling interest. The Company
considers EBITDA to be an appropriate supplemental measure of operating
performance to net income because it represents income before non-cash
depreciation and the cost of debt, and excludes gains or losses from property
dispositions. A reconciliation of net income to EBITDA is provided below:
Three Months Ended
March 31,
2009 2008
Net income attributable to common $ 6,234 $ 14,915
shareholders
Interest expense 32,245 32,777
Amortization of deferred financing 817 734
costs
Depreciation and amortization 43,980 41,516
Distributions on perpetual preferred 1,750 1,750
units
Net income allocated to noncontrolling 521 1,269
interest
Income tax expense - current 299 273
Real estate depreciation and
amortization from discontinued - 1,292
operations
Gain on sale of properties, including - (1,106 )
land
Gain on early retirement of debt (166 ) -
Equity in income (loss) of joint (408 ) 47
ventures
Gain on sale of discontinued - (6,127 )
operations
EBITDA $ 85,272 $ 87,340
Source: Camden Property Trust
Contact: Camden Property Trust, Houston
Kim Callahan, 713-354-2549