HOUSTON--(BUSINESS WIRE)--
Camden Property Trust (NYSE:CPT) announced that its funds from
operations ("FFO") for the fourth quarter of 2008 totaled $0.17 per
diluted share or $10.1 million, as compared to $0.94 per diluted share
or $57.1 million for the same period in 2007. FFO for the three months
ended December 31, 2008 included an $0.88 per diluted share impact from
impairment losses on land held for development and predevelopment
investments, and a $0.15 per diluted share impact from gains on the
repurchase of unsecured senior notes.
FFO for the twelve months ended December 31, 2008 totaled $2.90 per
diluted share or $169.6 million, as compared to $3.66 per diluted share
or $227.2 million for the same period in 2007. FFO for the twelve months
ended December 31, 2008 included an $0.88 per diluted share impact from
impairment losses on land held for development and predevelopment
investments, and a $0.23 per diluted share impact from gains on the
repurchase of unsecured senior notes.
Net Income ("EPS")
The Company reported a net loss of $34.9 million or $0.63 per diluted
share for the fourth quarter of 2008, as compared to net income of $81.0
million or $1.41 per diluted share for the same period in 2007. EPS for
the three months ended December 31, 2008 included a $0.93 per diluted
share impact from impairment losses on land held for development and
predevelopment investments, and a $0.16 per diluted share impact from
gains on the repurchase of unsecured senior notes. EPS for the three
months ended December 31, 2007 included a $1.17 per diluted share impact
from gain on sale of land and discontinued operations, net of minority
interest.
For the twelve months ended December 31, 2008, net income totaled $71.0
million or $1.28 per diluted share, as compared to $148.5 million or
$2.51 per diluted share for the same period in 2007. EPS for the twelve
months ended December 31, 2008 included a $1.50 per diluted share impact
from gain on sale of properties including discontinued operations, a
$0.93 per diluted share impact from impairment losses on land held for
development and predevelopment investments, and a $0.25 per diluted
share impact from gains on the repurchase of unsecured senior notes. EPS
for the twelve months ended December 31, 2007 included a $1.58 per
diluted share impact from gain on sale of land and discontinued
operations, net of minority interest.
A reconciliation of net income to FFO is included in the financial
tables accompanying this press release.
Same-Property Results
For the 40,340 apartment homes included in consolidated same-property
results, fourth quarter 2008 same-property net operating income ("NOI")
declined 2.8% compared to the fourth quarter of 2007, with revenues
increasing 1.1% and expenses increasing 8.2%. On a sequential basis,
fourth quarter 2008 same-property NOI increased 0.8% compared to the
third quarter of 2008, with revenues declining 2.2% and expenses
declining 6.7% compared to the prior quarter. On a full-year basis, 2008
same-property NOI declined 0.4%, with revenue growth of 1.5% and expense
growth of 4.6% compared to the same period in fiscal year 2007.
Same-property physical occupancy levels for the combined portfolio
averaged 93.6% during the fourth quarter of 2008, compared to 93.6% in
the fourth quarter of 2007 and 94.9% in the third quarter of 2008.
The Company defines same-property communities as communities owned and
stabilized as of January 1, 2007, excluding properties held for sale and
communities under redevelopment. A reconciliation of net income to net
operating income and same-property net operating income is included in
the financial tables accompanying this press release.
Development Activity
During the fourth quarter, lease-up was completed at Camden Royal Oaks
in Houston, TX, a $21.1 million project that is currently 92% leased. In
addition, the Company completed construction on two projects during the
quarter: Camden Cedar Hills in Austin, TX and Camden Whispering Oaks in
Houston, TX. As of December 31, 2008, Camden had five wholly-owned
apartment communities which were completed and in lease-up: Camden
Potomac Yard in Arlington, VA, a $104.5 million project that is
currently 72% leased; Camden Summerfield in Landover, MD, a $62.6
million project that is currently 78% leased; Camden Orange Court in
Orlando, FL, a $45.5 million project that is currently 66% leased;
Camden Cedar Hills in Austin, TX, a $23.6 million project that is
currently 84% leased; and Camden Whispering Oaks in Houston, TX, a $27.3
million project that is currently 80% leased. The Company also had two
joint venture communities which were completed and in lease-up: Camden
College Park in College Park, MD, a $125.3 million project that is
currently 66% leased; and Camden Main & Jamboree in Irvine, CA, a $110.1
million project that is currently 88% leased.
The Company has one wholly-owned community and two joint venture
communities currently under construction and in lease-up: Camden Dulles
Station in Oak Hill, VA, a $77.0 million wholly-owned project that is
currently 52% leased; Camden Amber Oaks in Austin, TX, a $40.0 million
joint venture project that is currently 20% leased; and Braeswood Place
in Houston, TX, a $48.6 million joint venture project that is currently
5% 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.
In January 2009, Camden announced a reduction in the number of planned
development projects it would undertake, which resulted in a $51.3
million non-cash impairment charge during the fourth quarter of 2008. In
addition, the Company announced a reduction in its construction and
development staff, which will result in a cash charge of approximately
$1.0 million for severance costs during the first quarter of 2009. [See
press release dated January 26, 2009 for further details.]
Properties Held for Sale
At December 31, 2008, Camden had one operating community held for sale:
Camden West Oaks, a 671-home apartment community in Houston, TX.
Debt & Equity Repurchases
During the fourth quarter, Camden repurchased and retired $137.8 million
of senior unsecured notes, resulting in an $8.8 million gain on early
retirement of debt. During the twelve months ended December 31, 2008,
the Company repurchased and retired a total of $191.0 million of senior
unsecured notes, resulting in a $13.6 million gain on early retirement
of debt.
During the twelve months ended December 31, 2008, Camden repurchased
694,800 common shares for a total of $30.1 million.
Liquidity
As of December 31, 2008, Camden had $444 million available under its
$600 million unsecured revolving Line of Credit. After all extension
options, the Line of Credit is scheduled to mature in January 2011. The
Company anticipates that it may issue approximately $250 million in new
secured or unsecured debt during 2009. Camden has $126 million of debt
maturities in 2009 and $348 million of debt maturities in 2010. It is
anticipated that these debt maturities will be repaid utilizing a
combination of the following sources: the Company's existing Line of
Credit, future debt offerings, retained cash flow from operations and
property dispositions.
Earnings Guidance
Camden provided initial 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 $3.15 to $3.45 per
diluted share, and full-year 2009 EPS is expected to be $0.05 to $0.35
per diluted share. First quarter 2009 earnings guidance is $0.80 to
$0.84 per diluted share for FFO and $0.02 to $0.06 per diluted share for
EPS. Guidance for EPS excludes potential future gains on the sale of
properties. Camden intends to update its earnings guidance to the market
on a quarterly basis.
The Company's initial 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%.
Additional information on the Company's 2009 financial outlook and a
reconciliation of expected net income to expected FFO are included in
the financial tables accompanying this press release.
Conference Call
The Company will hold a conference call on Tuesday, February 10, 2009 at
10:00 a.m. Central Time to review its fourth quarter and full-year 2008
results and discuss its outlook for future performance. To participate
in the call, please dial (800) 860-2442 (domestic) or (412) 858-4600
(international) by 9:50 a.m. Central Time and request the Camden
Property Trust Fourth Quarter 2008 Earnings Call, or join the live
webcast of the conference call by accessing the Investor Relations
section of the Company's website at www.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.
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 181 properties containing 62,903 apartment homes across
the United States. Upon completion of five 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 Twelve Months Ended
December 31, December 31,
OPERATING DATA 2008 2007 2008 2007
Property revenues
Rental revenues $ 137,921 $ 133,080 $ 547,718 $ 525,497
Other property 19,721 16,385 76,298 62,822
revenues
Total property 157,642 149,465 624,016 588,319
revenues
Property expenses
Property operating 41,967 38,858 168,883 155,181
and maintenance
Real estate taxes 16,999 14,322 70,032 62,169
Total property 58,966 53,180 238,915 217,350
expenses
Non-property income
Fee and asset 2,274 1,722 9,167 8,293
management income
Sale of technology - - - 623
investments
Interest and other 1,077 4,047 4,736 8,804
income
Income (loss) on
deferred (13,713 ) (1,120 ) (33,443 ) 7,282
compensation plans
Total non-property (10,362 ) 4,649 (19,540 ) 25,002
income (loss)
Other expenses
Property management 4,722 4,437 19,910 18,413
Fee and asset 1,435 1,150 6,054 4,552
management
General and 7,699 8,514 31,586 32,590
administrative
Interest 33,702 31,350 132,399 115,753
Depreciation and 43,300 40,068 171,814 157,297
amortization
Amortization of
deferred financing 837 949 2,958 3,661
costs
Expense (benefit) on
deferred (13,713 ) (1,120 ) (33,443 ) 7,282
compensation plans
Total other expenses 77,982 85,348 331,278 339,548
Income from
continuing
operations before
gain on sale of
properties, gain on
early retirement of 10,332 15,586 34,283 56,423
debt, impairment
loss on land, equity
in income of joint
ventures, minority
interests and income
taxes
Gain on sale of
properties, - - 2,929 -
including land
Gain on early 8,828 - 13,566 -
retirement of debt
Impairment loss on (51,323 ) (1,447 ) (51,323 ) (1,447 )
land
Equity in income
(loss) of joint (483 ) 454 (1,265 ) 1,526
ventures
Minority interests
Distributions on
perpetual preferred (1,750 ) (1,750 ) (7,000 ) (7,000 )
units
Income allocated to
common units and (652 ) (1,374 ) (4,052 ) (4,729 )
other minority
interests
Income (loss) from
continuing (35,048 ) 11,469 (12,862 ) 44,773
operations before
income taxes
Income tax expense (327 ) (478 ) (843 ) (3,052 )
Income (loss) from
continuing (35,375 ) 10,991 (13,705 ) 41,721
operations
Income from
discontinued 543 2,431 4,480 13,214
operations
Gain (loss) on sale
of discontinued (77 ) 76,063 80,198 107,039
operations
Income from
discontinued - (8,509 ) - (13,517 )
operations allocated
to common units
Net income (loss) ($34,909 ) $ 80,976 $ 70,973 $ 148,457
CONDENSED
CONSOLIDATED
STATEMENTS OF OTHER
COMPREHENSIVE INCOME
Net income (loss) ($34,909 ) $ 80,976 $ 70,973 $ 148,457
Other comprehensive
income (loss)
Unrealized loss on
cash flow hedging (33,667 ) (16,123 ) (35,069 ) (16,123 )
activities
Gain on
postretirement 33 - 136 -
obligations
Comprehensive income ($68,543 ) $ 64,853 $ 36,040 $ 132,334
(loss)
PER SHARE DATA
Net income - basic ($0.63 ) $ 1.43 $ 1.28 $ 2.55
Net income - diluted (0.63 ) 1.41 1.28 2.51
Income from
continuing (0.64 ) 0.19 (0.25 ) 0.72
operations - basic
Income from
continuing (0.64 ) 0.19 (0.25 ) 0.71
operations - diluted
Weighted average
number of common and
common equivalent
shares outstanding:
Basic 55,401 56,782 55,272 58,135
Diluted 55,401 57,613 55,272 59,125
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 Twelve Months Ended
December 31, December 31,
FUNDS FROM 2008 2007 2008 2007
OPERATIONS
Net income (loss) ($34,909 ) $ 80,976 $ 70,973 $ 148,457
Real estate
depreciation and
amortization from 42,403 39,247 168,264 154,140
continuing
operations
Real estate
depreciation from - 1,287 2,745 6,924
discontinued
operations
Adjustments for
unconsolidated joint 1,960 982 7,103 4,934
ventures
Income from
continuing 573 1,444 3,617 4,279
operations allocated
to common units
Income from
discontinued - 8,509 - 13,517
operations allocated
to common units
(Gain) loss on sale
of operating - - (2,929 ) 1,184
properties, net of
taxes
(Gain) loss on sale
of discontinued 77 (75,306 ) (80,188 ) (106,282 )
operations
Funds from $ 10,104 $ 57,139 $ 169,585 $ 227,153
operations - diluted
PER SHARE DATA
Funds from $ 0.17 $ 0.94 $ 2.90 $ 3.66
operations - diluted
Cash distributions 0.70 0.69 2.80 2.76
Weighted average
number of common and
common equivalent
shares outstanding:
FFO - diluted 58,398 60,597 58,528 62,120
PROPERTY DATA
Total operating
properties (end of 181 182 181 182
period) (a)
Total operating
apartment homes in 62,903 63,085 62,903 63,085
operating properties
(end of period) (a)
Total operating
apartment homes 50,509 52,542 51,277 53,132
(weighted average)
Total operating
apartment homes -
excluding 49,838 48,520 49,312 47,832
discontinued
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) Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,
2008 2008 2008 2008 2007
ASSETS
Real estate
assets, at
cost
Land $ 744,059 $ 745,085 $ 755,200 $ 749,664 $ 730,548
Buildings and 4,447,587 4,442,067 4,474,749 4,435,787 4,316,472
improvements
5,191,646 5,187,152 5,229,949 5,185,451 5,047,020
Accumulated (981,049 ) (952,883 ) (935,640 ) (907,643 ) (868,074 )
depreciation
Net operating
real estate 4,210,597 4,234,269 4,294,309 4,277,808 4,178,946
assets
Properties
under 264,188 323,300 333,419 358,994 446,664
development
and land
Investments
in joint 15,106 15,663 14,773 12,526 8,466
ventures
Properties
held for
sale, 20,653 9,495 36,152 23,299 25,253
including
land
Total real 4,510,544 4,582,727 4,678,653 4,672,627 4,659,329
estate assets
Accounts
receivable - 37,000 36,868 36,556 36,166 35,940
affiliates
Notes
receivable
Affiliates 58,109 58,240 53,849 52,331 50,358
Other 8,710 8,710 8,710 8,710 11,565
Other assets, 103,013 111,847 117,599 116,010 126,996
net (a)
Cash and cash 7,407 29,517 1,242 947 897
equivalents
Restricted 5,559 4,971 4,687 5,325 5,675
cash
Total assets $ 4,730,342 $ 4,832,880 $ 4,901,296 $ 4,892,116 $ 4,890,760
LIABILITIES
AND
SHAREHOLDERS'
EQUITY
Liabilities
Notes payable
Unsecured $ 2,103,187 $ 2,096,285 $ 2,400,027 $ 2,351,006 $ 2,265,319
Secured 729,209 727,235 539,328 559,952 562,776
Accounts
payable and 82,575 86,668 77,441 90,779 107,403
accrued
expenses
Accrued real 23,600 40,664 30,664 17,769 24,943
estate taxes
Other
liabilities 149,554 124,915 129,471 146,817 136,365
(b)
Distributions 42,936 42,968 42,965 42,942 42,689
payable
Total 3,131,061 3,118,735 3,219,896 3,209,265 3,139,495
liabilities
Commitments
and
contingencies
Minority
interests
Perpetual
preferred 97,925 97,925 97,925 97,925 97,925
units
Common units 88,075 93,816 96,249 97,416 111,624
Other
minority 1,787 8,438 8,572 8,537 10,403
interests
Total
minority 187,787 200,179 202,746 203,878 219,952
interests
Shareholders'
equity
Common shares
of beneficial 660 660 660 660 654
interest
Additional
paid-in 2,237,703 2,232,436 2,230,119 2,227,256 2,209,631
capital
Distributions
in excess of (312,309 ) (238,301 ) (272,294 ) (250,845 ) (227,025 )
net income
Employee
notes (295 ) (298 ) (302 ) (306 ) (1,950 )
receivable
Treasury
shares, at (463,209 ) (463,108 ) (463,574 ) (463,574 ) (433,874 )
cost
Accumulated
other (51,056 ) (17,423 ) (15,955 ) (34,218 ) (16,123 )
comprehensive
loss (c)
Total
shareholders' 1,411,494 1,513,966 1,478,654 1,478,973 1,531,313
equity
Total
liabilities
and $ 4,730,342 $ 4,832,880 $ 4,901,296 $ 4,892,116 $ 4,890,760
shareholders'
equity
(a) includes:
net deferred $ 10,505 $ 11,388 $ 9,434 $ 10,287 $ 10,811
charges of:
value of in
place leases - - - $ 62 $ 258
of:
(b) includes:
deferred $ 2,640 $ 2,940 $ 2,747 $ 2,575 $ 2,459
revenues of:
(above)/below
market leases - - - ($6 ) ($13 )
of:
distributions
in excess of
investments $ 30,105 $ 27,977 $ 26,022 $ 25,065 $ 23,653
in joint
ventures of:
fair value
adjustment of $ 51,056 $ 17,423 $ 15,955 $ 34,218 $ 16,123
derivative
instruments:
(c) Represents the fair value adjustment of derivative instruments and
gain on post retirement obligations.
CAMDEN 2009 Financial Outlook
as of February 9, 2009
(Unaudited)
2008 Reported FFO, Adjusted for Non-Routine
Items
Total Per Share
2008 Reported FFO $ 169,585 $ 2.90
Adjustments for non-routine items:
Plus: Impairment loss on land 51,323 0.88
Less: Gain on early retirement of debt (13,566 ) (0.23 )
2008 FFO adjusted for non-routine items $ 207,342 $ 3.55
2008 Fully Diluted Shares Outstanding - FFO 58,528
2009 Financial Outlook
Earnings Guidance - Per Diluted Share
Expected net income per share - diluted $0.05 to $0.35
Expected difference between EPS and fully 0.00
diluted FFO shares
Expected real estate depreciation 2.91
Expected adjustments for unconsolidated joint 0.02
ventures
Expected income allocated to common units 0.17
Expected FFO per share - diluted $3.15 to $3.45
"Same Property" Communities
Number of Units 42,670
2008 Base Net Operating Income $334 million
Total Revenue Growth (0.50%) to (2.50%)
Revenue Growth excluding revenue attributable (2.00%) to (4.00%)
to ancillary income initiatives (a)
Total Expense Growth 5.00% to 6.25%
Expense Growth excluding expenses related to 3.10% to 4.35%
ancillary income initiatives (b)
Net Operating Income Growth (4.50%) to (7.50%)
Physical Occupancy 93.3%
∙ Impact from 1.0% change in NOI Growth is
approximately $0.06 / share
Acquisitions/Dispositions
Dispositions (Communities Held for Sale at $25 to $30 million
12/31/08)
Future Dispositions Volume $0 to $100 million
Future Acquisitions Volume (consolidated on $0 to $100 million
balance sheet)
Future Acquisitions Volume (joint venture) $0 to $200 million
Development
Development Starts (consolidated on balance $0 to $100 million
sheet)
Development Starts (joint venture) $0 to $100 million
2009 Incremental FFO Accretion vs. 2008 for
Developments Stabilized in 2008 (consolidated $2 million
on balance sheet)
2009 Incremental FFO Accretion vs. 2008 for
Current Developments (consolidated on balance $4 to $5 million
sheet)
2009 Incremental FFO Dilution vs. 2008 from
Impaired Assets (excludes 2008 impairment ($6 million)
loss on land)
2009 Incremental FFO Accretion vs. 2008 for $3 million
Current Developments (joint venture)
Capitalized Maintenance Expenditures $25 to $30 million
Non-Property Income
Non-Property Income, Net $4 to $6 million
Includes: Fee and asset management income,
net of expenses and Interest and other income
Corporate Expenses
General and Administrative and Property $48 to $52 million
Management Expense
Anticipated 1Q2009 Severance Charge $1 million
Debt
Capitalized Interest $9 to $11 million
Expensed Interest $126 to $134 million
30 Day LIBOR (average) 0.70%
Note: Please refer to the following pages for definitions and reconciliations
of all non-GAAP financial measures presented in this document.
(a) Excludes revenue earned from Perfect Connection (Camden's bulk cable
program) and Valet Waste (Camden's door to door trash collection program).
(b) Excludes expenses associated with Perfect Connection (Camden's bulk cable
program) and Valet Waste (Camden's door to door trash collection program).
Note: This table contains forward-looking statements. Please see the paragraph
regarding forward-looking statements earlier in this document.
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 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 Twelve Months Ended
December 31, December 31,
2008 2007 2008 2007
Net income (loss) ($34,909 ) $ 80,976 $ 70,973 $ 148,457
Real estate depreciation
and amortization from 42,403 39,247 168,264 154,140
continuing operations
Real estate depreciation
from discontinued - 1,287 2,745 6,924
operations
Adjustments for
unconsolidated joint 1,960 982 7,103 4,934
ventures
Income from continuing
operations allocated to 573 1,444 3,617 4,279
common units
Income from discontinued
operations allocated to - 8,509 - 13,517
common units
(Gain) loss on sale of
operating properties, - - (2,929 ) 1,184
net of taxes
(Gain) loss on sale of 77 (75,306 ) (80,188 ) (106,282 )
discontinued operations
Funds from operations - $ 10,104 $ 57,139 $ 169,585 $ 227,153
diluted
Weighted average number
of common and
common equivalent shares
outstanding:
EPS diluted 55,401 57,613 55,272 59,125
FFO diluted 58,398 60,597 58,528 62,120
Net income per common ($0.63 ) $ 1.41 $ 1.28 $ 2.51
share - diluted
FFO per common share - $ 0.17 $ 0.94 $ 2.90 $ 3.66
diluted
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:
1Q09 Range 2009 Range
Low High Low High
Expected net income per share - diluted $ 0.02 $ 0.06 $ 0.05 $ 0.35
Expected real estate depreciation 0.73 0.73 2.91 2.91
Expected adjustments for unconsolidated joint 0.01 0.01 0.02 0.02
ventures
Expected income allocated to common units 0.04 0.04 0.17 0.17
Expected FFO per share - diluted $ 0.80 $ 0.84 $ 3.15 $ 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 Twelve Months Ended
December 31, December 31,
2008 2007 2008 2007
Net income ($34,909 ) $ 80,976 $ 70,973 $ 148,457
Fee and asset management (2,274 ) (1,722 ) (9,167 ) (8,293 )
income
Sale of technology - - - (623 )
investments
Interest and other (1,077 ) (4,047 ) (4,736 ) (8,804 )
income
Income (loss) on
deferred compensation 13,713 1,120 33,443 (7,282 )
plans
Property management 4,722 4,437 19,910 18,413
expense
Fee and asset management 1,435 1,150 6,054 4,552
expense
General and 7,699 8,514 31,586 32,590
administrative expense
Interest expense 33,702 31,350 132,399 115,753
Depreciation and 43,300 40,068 171,814 157,297
amortization
Amortization of deferred 837 949 2,958 3,661
financing costs
Expense (benefit) on
deferred compensation (13,713 ) (1,120 ) (33,443 ) 7,282
plans
(Gain) loss on sale of
properties, including - - (2,929 ) -
land
Gain on early retirement (8,828 ) - (13,566 ) -
of debt
Equity in income (loss) 483 (454 ) 1,265 (1,526 )
of joint ventures
Impairment loss on land 51,323 1,447 51,323 1,447
Distributions on
perpetual preferred 1,750 1,750 7,000 7,000
units
Income allocated to
common units and other 652 1,374 4,052 4,729
minority interests
Income tax expense 327 478 843 3,052
Income from discontinued (543 ) (2,431 ) (4,480 ) (13,214 )
operations
Gain (loss) on sale of 77 (76,063 ) (80,198 ) (107,039 )
discontinued operations
Income from discontinued
operations allocated to - 8,509 - 13,517
common units
Net Operating Income $ 98,676 $ 96,285 $ 385,101 $ 370,969
(NOI)
"Same Property" $ 76,823 $ 79,059 $ 310,231 $ 311,459
Communities
Non-"Same Property" 10,969 9,170 40,085 30,007
Communities
Development and Lease-Up 2,649 (47 ) 3,750 (59 )
Communities
Redevelopment 7,234 6,521 27,704 25,474
Communities
Dispositions / Other 1,001 1,582 3,331 4,088
Net Operating Income $ 98,676 $ 96,285 $ 385,101 $ 370,969
(NOI)
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 income allocated to minority interests. 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 Twelve Months Ended
December 31, December 31,
2008 2007 2008 2007
Net income ($34,909 ) $ 80,976 $ 70,973 $ 148,457
Interest expense 33,702 31,592 132,865 116,751
Amortization of deferred 837 949 2,958 3,661
financing costs
Depreciation and 43,300 40,068 171,814 157,297
amortization
Distributions on
perpetual preferred 1,750 1,750 7,000 7,000
units
Income allocated to
common units and other 652 1,374 4,052 4,729
minority interests
Income tax expense 327 478 843 3,052
Real estate depreciation
and amortization from - 1,294 2,762 6,955
discontinued operations
(Gain) loss on sale of
properties, including - - (2,929 ) -
land
Gain on early retirement (8,828 ) - (13,566 ) -
of debt
Equity in income (loss) 483 (454 ) 1,265 (1,526 )
of joint ventures
Impairment loss on land 51,323 1,447 51,323 1,447
Gain (loss) on sale of 77 (76,063 ) (80,198 ) (107,039 )
discontinued operations
Income from discontinued
operations allocated to - 8,509 - 13,517
common units
EBITDA $ 88,714 $ 91,920 $ 349,162 $ 354,301
Source: Camden Property Trust
Contact: Camden Property Trust, Houston
Kim Callahan, 713-354-2549