HOUSTON--(BUSINESS WIRE)--
Camden Property Trust (NYSE: CPT) today announced operating results for
the three and nine months ended September 30, 2009.
Funds from Operations ("FFO")
FFO for the third quarter of 2009 totaled $0.70 per diluted share or
$48.1 million, as compared to $0.89 per diluted share or $52.3 million
for the same period in 2008. FFO for the three months ended September
30, 2008 included a $0.04 per diluted share impact from gains related to
early retirement of debt, and a $0.02 per diluted share charge for
insurance deductible costs related to hurricane damage.
FFO for the nine months ended September 30, 2009 totaled $2.29 per
diluted share or $146.3 million, as compared to $2.72 per diluted share
or $159.5 million for the same period in 2008. FFO for the nine months
ended September 30, 2009 included a $0.04 per diluted share impact from
losses related to early retirement of debt. FFO for the nine months
ended September 30, 2008 included an $0.08 per diluted share impact from
gains related to early retirement of debt, and a $0.02 per diluted share
charge for insurance deductible costs related to hurricane damage.
Net Income Attributable to Common
Shareholders ("EPS")
The Company reported net income attributable to common shareholders
("EPS") of $3.9 million or $0.06 per diluted share for the third quarter
of 2009, as compared to $73.7 million or $1.30 per diluted share for the
same period in 2008. EPS for the three months ended September 30, 2008
included a $1.20 per diluted share impact from gain on sale of
properties including discontinued operations, a $0.04 per diluted share
impact from gains related to early retirement of debt, and a $0.02 per
diluted share charge for insurance deductible costs related to hurricane
damage.
For the nine months ended September 30, 2009, net income attributable to
common shareholders totaled $28.5 million or $0.46 per diluted share, as
compared to $105.9 million or $1.88 per diluted share for the same
period in 2008. EPS for the nine months ended September 30, 2009
included a $0.27 per diluted share impact from gain on sale of
discontinued operations, and a $0.04 per diluted share impact from
losses related to early retirement of debt. EPS for the nine months
ended September 30, 2008 included a $1.49 per diluted share impact from
gain on sale of properties including discontinued operations, an $0.08
per diluted share impact from gains related to early retirement of debt,
and a $0.02 per diluted share charge for insurance deductible costs
related to hurricane damage.
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, third quarter 2009 same-property NOI declined 7.0% compared to
the third quarter of 2008, with revenues declining 4.5% and expenses
declining 0.6%. On a sequential basis, third quarter 2009 same-property
NOI declined 3.3% compared to the second quarter of 2009, with revenues
declining 1.3% and expenses increasing 1.7% compared to the prior
quarter. On a year-to-date basis, 2009 same-property NOI declined 6.2%,
with revenues declining 2.4% and expenses increasing 3.8% compared to
the same period in 2008. Same-property physical occupancy levels for the
portfolio averaged 93.7% during the third quarter of 2009, compared to
94.9% in the third quarter of 2008 and 94.2% in the second quarter of
2009.
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 third quarter, the Company completed lease-ups at three
development communities: Camden Whispering Oaks in Houston, TX; Camden
Potomac Yard in Arlington, VA; and Camden Summerfield in Landover, MD.
Camden currently has two wholly-owned apartment communities completed
and in lease-up: Camden Orange Court in Orlando, FL, a $45.5 million
project that is currently 93% leased; and Camden Dulles Station in Oak
Hill, VA, a $72.3 million project that is currently 81% leased.
The Company completed lease-up at one joint venture development
community, Camden College Park in College Park, MD, during the quarter.
Camden also had two joint venture communities which were completed and
in lease-up: Camden Amber Oaks in Austin, TX, a $35.2 million project
that is currently 74% leased; and Braeswood Place in Houston, TX, a
$50.3 million project that is currently 52% leased. Camden has two
additional joint venture communities currently under construction in
Houston, TX: Belle Meade, a $33.2 million project that is currently 20%
leased; and Camden Travis Street, a $39.0 million project that is
currently 2% leased.
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 $2.97 to $3.01 per diluted share,
and full-year 2009 EPS is expected to be $0.49 to $0.53 per diluted
share. The Company's previous FFO guidance was $2.91 to $3.05 per
diluted share. Fourth quarter 2009 earnings guidance is $0.69 to $0.73
per diluted share for FFO and $0.04 to $0.08 per diluted share for EPS.
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 NOI declines between 5.5% and 6.5%. Same-property revenue
is expected to decline between 2.75% and 3.25%, and same-property
expense growth is projected to increase between 1.75% and 2.25%. 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, October 30, 2009 at
11:00 a.m. Central Time to review its third 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: 9392035, 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.
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 183 properties containing 63,286 apartment homes across
the United States. Upon completion of two properties under development,
the Company's portfolio will increase to 63,658 apartment homes in 185
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 Nine Months Ended
September 30, September 30,
OPERATING DATA 2009 2008 2009 2008
Property revenues
Rental revenues $133,702 $138,979 $406,002 $409,797
Other property 22,672 20,404 64,861 56,577
revenues
Total property 156,374 159,383 470,863 466,374
revenues
Property expenses
Property operating 46,772 47,519 133,617 126,916
and maintenance
Real estate taxes 17,893 17,921 54,957 53,033
Total property 64,665 65,440 188,574 179,949
expenses
Non-property income
Fee and asset 1,818 2,350 6,093 6,893
management income
Interest and other 582 1,234 2,414 3,659
income
Income (loss) on
deferred 8,194 (10,550 ) 11,702 (19,730 )
compensation plans
Total non-property 10,594 (6,966 ) 20,209 (9,178 )
income (loss)
Other expenses
Property management 4,377 5,007 13,848 15,188
Fee and asset 1,074 1,198 3,512 4,619
management
General and 7,532 7,513 23,010 23,887
administrative
Interest 31,117 32,838 97,364 98,697
Depreciation and 42,895 43,808 130,763 128,514
amortization
Amortization of
deferred financing 682 798 2,356 2,121
costs
Expense (benefit) on
deferred 8,194 (10,550 ) 11,702 (19,730 )
compensation plans
Total other expenses 95,871 80,612 282,555 253,296
Income from
continuing
operations before
gain on sale of
properties,
including land, gain 6,432 6,365 19,943 23,951
(loss) on early
retirement of debt,
and equity in income
(loss) of joint
ventures
Gain on sale of
properties, - 1,823 - 2,929
including land
Gain (loss) on early - 2,440 (2,550 ) 4,738
retirement of debt
Equity in income
(loss) of joint (38 ) (261 ) 592 (782 )
ventures
Income from
continuing 6,394 10,367 17,985 30,836
operations before
income taxes
Income tax expense - (126 ) (83 ) (772 ) (516 )
current
Income from
continuing 6,268 10,284 17,213 30,320
operations
Income (loss) from
discontinued (76 ) 545 1,084 3,937
operations
Gain on sale of
discontinued - 65,599 16,887 80,275
operations
Net income 6,192 76,428 35,184 114,532
Less net income
allocated to (505 ) (1,005 ) (1,448 ) (3,400 )
noncontrolling
interests
Less net income
allocated to (1,750 ) (1,750 ) (5,250 ) (5,250 )
perpetual preferred
units
Net income
attributable to $3,937 $73,673 $28,486 $105,882
common shareholders
CONDENSED
CONSOLIDATED
STATEMENTS OF OTHER
COMPREHENSIVE INCOME
Net income $6,192 $76,428 $35,184 $114,532
Other comprehensive
income (loss)
Unrealized loss on
cash flow hedging (8,732 ) (4,475 ) (10,307 ) (8,277 )
activities
Reclassification of
net losses on cash 5,697 2,905 16,442 6,875
flow hedging
activities
Gain on
postretirement - 103 - 103
obligations
Comprehensive income 3,157 74,961 41,319 113,233
Less net income
allocated to (505 ) (1,005 ) (1,448 ) (3,400 )
noncontrolling
interests
Less net income
allocated to (1,750 ) (1,750 ) (5,250 ) (5,250 )
perpetual preferred
units
Comprehensive income
attributable to $902 $72,206 $34,621 $104,583
common shareholders
PER SHARE DATA
Net income
attributable to $0.06 $1.32 $0.46 $1.90
common shareholders
- basic
Net income
attributable to 0.06 1.30 0.46 1.88
common shareholders
- diluted
Income from
continuing
operations 0.06 0.12 0.17 0.38
attributable to
common shareholders
- basic
Income from
continuing
operations 0.06 0.12 0.17 0.37
attributable to
common shareholders
- diluted
Weighted average
number of common and
common equivalent
shares outstanding:
Basic 66,094 55,367 61,087 55,228
Diluted 66,602 56,008 61,579 55,889
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 Nine Months Ended
September 30, September 30,
FUNDS FROM OPERATIONS 2009 2008 2009 2008
Net income
attributable to $3,937 $73,673 $28,486 $105,882
common shareholders
Real estate
depreciation and 41,834 42,913 127,707 125,861
amortization from
continuing operations
Real estate
depreciation from - 346 - 2,745
discontinued
operations
Adjustments for
unconsolidated joint 1,935 1,889 5,812 5,143
ventures
Income allocated to
noncontrolling 406 884 1,148 3,044
interests
Gain on sale of
operating properties, - (1,823 ) - (2,929 )
net of taxes
Gain on sale of
discontinued - (65,599 ) (16,887 ) (80,265 )
operations
Funds from operations $48,112 $52,283 $146,266 $159,481
- diluted
PER SHARE DATA
Funds from operations $0.70 $0.89 $2.29 $2.72
- diluted
Cash distributions 0.45 0.70 1.60 2.10
Weighted average
number of common and
common equivalent
shares outstanding:
FFO - diluted 68,959 58,561 63,967 58,572
PROPERTY DATA
Total operating
properties (end of 183 179 183 179
period) (a)
Total operating
apartment homes in 63,286 62,421 63,286 62,421
operating properties
(end of period) (a)
Total operating
apartment homes 50,383 50,877 50,639 51,532
(weighted average)
Total operating
apartment homes -
excluding 50,383 49,560 50,191 49,136
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) Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
2009 2009 2009 2008 2008
ASSETS
Real estate
assets, at
cost
Land $746,825 $746,936 $746,935 $744,059 $745,085
Buildings and 4,484,335 4,473,906 4,466,296 4,447,587 4,442,067
improvements
5,231,160 5,220,842 5,213,231 5,191,646 5,187,152
Accumulated (1,107,227 ) (1,065,861 ) (1,023,466 ) (981,049 ) (952,883 )
depreciation
Net operating
real estate 4,123,933 4,154,981 4,189,765 4,210,597 4,234,269
assets
Properties
under 279,620 268,655 258,239 264,188 323,300
development
and land
Investments in 43,236 22,334 15,158 15,106 15,663
joint ventures
Properties
held for sale, 6,622 6,732 20,696 20,653 9,495
including land
Total real 4,453,411 4,452,702 4,483,858 4,510,544 4,582,727
estate assets
Accounts
receivable - 35,971 35,909 36,105 37,000 36,868
affiliates
Notes
receivable
Affiliates 54,462 54,033 58,481 58,109 58,240
Other - - - 8,710 8,710
Other assets, 104,669 92,421 84,905 103,013 111,847
net (a)
Cash and cash 81,683 157,665 7,256 7,407 29,517
equivalents
Restricted 3,901 5,190 4,437 5,559 4,971
cash
Total assets $4,734,097 $4,797,920 $4,675,042 $4,730,342 $4,832,880
LIABILITIES
AND
SHAREHOLDERS'
EQUITY
Liabilities
Notes payable
Unsecured $1,646,106 $1,728,150 $2,151,492 $2,103,187 $2,096,285
Secured 976,051 969,668 680,631 729,209 727,235
Accounts
payable and 78,466 65,012 73,250 82,575 86,668
accrued
expenses
Accrued real 42,386 30,154 19,113 23,600 40,664
estate taxes
Other 145,464 132,763 137,397 149,554 124,915
liabilities(b)
Distributions 33,028 33,050 43,136 42,936 42,968
payable
Total 2,921,501 2,958,797 3,105,019 3,131,061 3,118,735
liabilities
Commitments
and
contingencies
Perpetual
preferred 97,925 97,925 97,925 97,925 97,925
units
Shareholders'
equity
Common shares
of beneficial 770 769 666 660 660
interest
Additional
paid-in 2,522,525 2,517,788 2,242,940 2,237,703 2,232,436
capital
Distributions
in excess of
net income (383,265 ) (357,168 ) (345,481 ) (312,309 ) (238,301 )
attributable
to common
shareholders
Notes
receivable (101 ) (287 ) (291 ) (295 ) (298 )
secured by
common shares
Treasury
shares, at (462,188 ) (462,751 ) (462,751 ) (463,209 ) (463,108 )
cost
Accumulated
other (44,921 ) (41,886 ) (48,716 ) (51,056 ) (17,423 )
comprehensive
loss (c)
Total common
shareholders' 1,632,820 1,656,465 1,386,367 1,411,494 1,513,966
equity
Noncontrolling 81,851 84,733 85,731 89,862 102,254
interest
Total
shareholders' 1,714,671 1,741,198 1,472,098 1,501,356 1,616,220
equity
Total
liabilities
and $4,734,097 $4,797,920 $4,675,042 $4,730,342 $4,832,880
shareholders'
equity
(a)includes:
net deferred $11,617 $12,108 $10,061 $10,505 $11,388
charges of:
(b)includes:
deferred $2,938 $3,183 $2,402 $2,640 $2,940
revenues of:
distributions
in excess of
investments in $30,507 $30,287 $31,318 $30,105 $27,977
joint ventures
of:
fair value
adjustment of $44,730 $41,797 $48,693 $51,068 $17,511
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 attributable to common shareholders to FFO is provided below:
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Net income attributable to common $3,937 $73,673 $28,486 $105,882
shareholders
Real estate depreciation and
amortization from continuing 41,834 42,913 127,707 125,861
operations
Real estate depreciation from - 346 - 2,745
discontinued operations
Adjustments for unconsolidated 1,935 1,889 5,812 5,143
joint ventures
Income allocated to noncontrolling 406 884 1,148 3,044
interests
Gain on sale of operating - (1,823 ) - (2,929 )
properties, net of taxes
Gain on sale of discontinued - (65,599 ) (16,887 ) (80,265 )
operations
Funds from operations - diluted $48,112 $52,283 $146,266 $159,481
Weighted average number of common
and
common equivalent shares
outstanding:
EPS diluted 66,602 56,008 61,579 55,889
FFO diluted 68,959 58,561 63,967 58,572
Net income attributable to common $0.06 $1.30 $0.46 $1.88
shareholders - diluted
FFO per common share - diluted $0.70 $0.89 $2.29 $2.72
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 attributable to common shareholders (EPS).
A reconciliation of the ranges provided for expected net income attributable to
common shareholders per diluted share to expected FFO per diluted share is
provided below:
4Q09 Range 2009 Range
Low High Low High
Expected net income attributable
to common shareholders per share - $0.04 $0.08 $0.49 $0.53
diluted
Expected difference between EPS 0.00 0.00 (0.01 ) (0.01 )
and fully diluted FFO shares
Expected real estate depreciation 0.61 0.61 2.61 2.61
Expected adjustments for 0.03 0.03 0.12 0.12
unconsolidated joint ventures
Expected income allocated to 0.01 0.01 0.02 0.02
noncontrolling interests
Expected (gain) on sale of
properties and properties held for 0.00 0.00 (0.26 ) (0.26 )
sale
Expected FFO per share - diluted 0.69 0.73 $2.97 $3.01
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)
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
attributable to common shareholders 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 attributable to common shareholders to net operating income is provided
below:
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Net income attributable to common $3,937 $73,673 $28,486 $105,882
shareholders
Fee and asset management income (1,818 ) (2,350 ) (6,093 ) (6,893 )
Interest and other income (582 ) (1,234 ) (2,414 ) (3,659 )
Income (loss) on deferred (8,194 ) 10,550 (11,702 ) 19,730
compensation plans
Property management expense 4,377 5,007 13,848 15,188
Fee and asset management expense 1,074 1,198 3,512 4,619
General and administrative expense 7,532 7,513 23,010 23,887
Interest expense 31,117 32,838 97,364 98,697
Depreciation and amortization 42,895 43,808 130,763 128,514
Amortization of deferred financing 682 798 2,356 2,121
costs
Expense (benefit) on deferred 8,194 (10,550 ) 11,702 (19,730 )
compensation plans
Gain on sale of properties, - (1,823 ) - (2,929 )
including land
Gain (loss) on early retirement of - (2,440 ) 2,550 (4,738 )
debt
Equity in income (loss) of joint 38 261 (592 ) 782
ventures
Less net income allocated to 1,750 1,750 5,250 5,250
perpetual preferred units
Net income allocated to 505 1,005 1,448 3,400
noncontrolling interests
Income tax expense - current 126 83 772 516
Income (loss) from discontinued 76 (545 ) (1,084 ) (3,937 )
operations
Gain on sale of discontinued - (65,599 ) (16,887 ) (80,275 )
operations
Income from discontinued
operations allocated to common - - - -
units
Net Operating Income (NOI) $91,709 $93,943 $282,289 $286,425
"Same Property" Communities $76,308 $82,035 $236,085 $251,616
Non-"Same Property" Communities 13,191 11,308 40,232 30,243
Development and Lease-Up 1,126 304 2,682 47
Communities
Redevelopment Communities 705 726 2,098 2,256
Dispositions / Other 379 (430 ) 1,192 2,263
Net Operating Income (NOI) $91,709 $93,943 $282,289 $286,425
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 interests. The Company
considers EBITDA to be an appropriate supplemental measure of operating
performance to net income attributable to common shareholders 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 attributable to common shareholders to EBITDA is provided below:
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Net income attributable to common $3,937 $73,673 $28,486 $105,882
shareholders
Interest expense 31,117 32,924 97,364 99,163
Amortization of deferred financing 682 798 2,356 2,121
costs
Depreciation and amortization 42,895 43,808 130,763 128,514
Less net income allocated to 1,750 1,750 5,250 5,250
perpetual preferred units
Net income allocated to 505 1,005 1,448 3,400
noncontrolling interests
Income tax expense - current 126 83 772 516
Real estate depreciation and
amortization from discontinued - 348 - 2,762
operations
Gain on sale of properties, - (1,823 ) - (2,929 )
including land
Gain (loss) on early retirement of - (2,440 ) 2,550 (4,738 )
debt
Equity in income (loss) of joint 38 261 (592 ) 782
ventures
Gain on sale of discontinued - (65,599 ) (16,887 ) (80,275 )
operations
EBITDA $81,050 $84,788 $251,510 $260,448
Source: Camden Property Trust
Contact: Camden Property Trust, Houston
Kim Callahan, 713-354-2549