Camden Property Trust Announces Fourth Quarter and Full Year 2009 Operating Results

2/8/2010

HOUSTON--(BUSINESS WIRE)-- Camden Property Trust (NYSE: CPT) today announced operating results for the three and twelve months ended December 31, 2009.

Funds from Operations ("FFO")

FFO for the fourth quarter of 2009 totaled ($0.53) per diluted share or ($36.3) million, as compared to $0.17 per diluted share or $10.1 million for the same period in 2008. FFO for the three months ended December 31, 2009 included a $1.24 per diluted share impact from impairment losses on land held for development and predevelopment investments. 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 related to early retirement of debt. FFO excluding these non-recurring items for the three months ended December 31, 2009 and December 31, 2008 would have been $0.71 per diluted share and $0.90 per diluted share respectively.

FFO for the twelve months ended December 31, 2009 totaled $1.68 per diluted share or $109.9 million, as compared to $2.90 per diluted share or $169.6 million for the same period in 2008. FFO for the twelve months ended December 31, 2009 included a $1.31 per diluted share impact from impairment losses on land held for development and predevelopment investments, and a $0.04 per diluted share impact from losses related to early retirement of debt. 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 related to early retirement of debt. FFO excluding these non-recurring items for the twelve months ended December 31, 2009 and December 31, 2008 would have been $3.04 per diluted share and $3.54 per diluted share respectively.

Net Income Attributable to Common Shareholders ("EPS")

The Company reported a net loss attributable to common shareholders ("EPS") of $79.3 million or $1.19 per diluted share for the fourth quarter of 2009, as compared to a net loss of $34.9 million or $0.63 per diluted share for the same period in 2008. EPS for the three months ended December 31, 2009 included a $1.24 per diluted share impact from impairment losses on land held for development and predevelopment investments. 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 related to early retirement of debt.

For the twelve months ended December 31, 2009, Camden reported a net loss attributable to common shareholders of $50.8 million or $0.80 per diluted share, as compared to net income attributable to common shareholders of $71.0 million or $1.28 per diluted share for the same period in 2008. EPS for the twelve months ended December 31, 2009 included an $1.31 per diluted share impact from impairment losses on land held for development and predevelopment investments, 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 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 related to early retirement of debt.

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, fourth quarter 2009 same-property net operating income ("NOI") declined 5.5% compared to the fourth quarter of 2008, with revenues declining 5.1% and expenses declining 4.4%. On a sequential basis, fourth quarter 2009 same-property NOI increased 2.6% compared to the third quarter of 2009, with revenues declining 2.7% and expenses declining 10.2% compared to the prior quarter. On a full-year basis, 2009 same-property NOI declined 6.0%, with a revenue decline of 3.1% and expense growth of 1.8% compared to the same period in fiscal year 2008. Same-property physical occupancy levels for the combined portfolio averaged 92.9% during the fourth quarter of 2009, compared to 93.7% in the fourth quarter of 2008 and 93.7% in the third 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 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, the Company completed lease-up at Camden Orange Court in Orlando, FL, a $45.5 million project that is currently 94% occupied. Camden currently has one wholly-owned apartment community completed and in lease-up: Camden Dulles Station in Oak Hill, VA, a $72.3 million project that is currently 85% leased.

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 80% leased; and Braeswood Place in Houston, TX, a $50.3 million project that is currently 64% leased. Camden has two additional joint venture communities currently under construction in Houston, TX: Belle Meade, a $36.7 million project that is currently 32% leased; and Camden Travis Street, a $39.0 million project that is currently 31% leased.

Camden recently announced a reduction in the number of planned development projects it would undertake, which resulted in a $85.6 million impairment charge during the fourth quarter of 2009. [See press release dated February 2, 2010 for further details.]

Earnings Guidance

Camden provided initial earnings guidance for 2010 based on its current and expected views of the apartment market and general economic conditions. Full-year 2010 FFO is expected to be $2.35 to $2.65 per diluted share, and full-year 2010 EPS is expected to be $(0.24) to $0.06 per diluted share. First quarter 2010 earnings guidance is $0.64 to $0.68 per diluted share for FFO and $(0.01) to $0.03 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 2010 earnings guidance is based on projections of same-property revenue declines between 2.25% and 4.25%, expense growth between 2.0% and 3.5%, and NOI declines between 5.5% and 8.5%. Additional information on the Company's 2010 financial outlook and a reconciliation of expected net income attributable to common shareholders 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 9, 2010 at 11:00 a.m. Central Time to review its fourth quarter and full-year 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: 4636692, 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 third 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               2009         2008          2009         2008

Property revenues

Rental revenues              $ 131,420    $ 137,921     $ 537,422    $ 547,718

Other property revenues        21,643       19,721        86,504       76,298

Total property revenues        153,063      157,642       623,926      624,016

Property expenses

Property operating and         42,099       41,990        175,788      168,981
maintenance

Real estate taxes              15,937       17,052        71,079       70,301

Total property expenses        58,036       59,042        246,867      239,282

Non-property income

Fee and asset management       1,915        2,274         8,008        9,167
income

Interest and other income      412          1,077         2,826        4,736

Income (loss) on deferred      2,907        (13,713  )    14,609       (33,443 )
compensation plans

Total non-property income      5,234        (10,362  )    25,443       (19,540 )
(loss)

Other expenses

Property management            5,016        4,722         18,864       19,910

Fee and asset management       1,366        1,435         4,878        6,054

General and administrative     8,233        7,699         31,243       31,586

Interest                       30,932       33,702        128,296      132,399

Depreciation and               43,919       43,300        174,682      171,814
amortization

Amortization of deferred       1,569        837           3,925        2,958
financing costs

Expense (benefit) on           2,907        (13,713  )    14,609       (33,443 )
deferred compensation plans

Total other expenses           93,942       77,982        376,497      331,278

Income from continuing
operations before gain on
sale of properties,
including land, gain (loss)
on early retirement of         6,319        10,256        26,005       33,916
debt, impairment associated
with land development
activities, and equity in
income (loss) of joint
ventures

Gain on sale of properties,    -            -             -            2,929
including land

Gain (loss) on early           -            8,828         (2,550   )   13,566
retirement of debt

Impairment associated with     (85,614  )   (51,323  )    (85,614  )   (51,323 )
land development activities

Equity in income (loss) of     103          (483     )    695          (1,265  )
joint ventures

Loss from continuing
operations before income       (79,192  )   (32,722  )    (61,464  )   (2,177  )
taxes

Income tax expense -           (195     )   (327     )    (967     )   (843    )
current

Loss from continuing           (79,387  )   (33,049  )    (62,431  )   (3,020  )
operations

Income from discontinued       -            619           1,341        4,847
operations

Gain (loss) on sale of         -            (77      )    16,887       80,198
discontinued operations

Net income (loss)              (79,387  )   (32,507  )    (44,203  )   82,025

Less (income) loss
allocated to noncontrolling    1,851        (652     )    403          (4,052  )
interests

Less income allocated to       (1,750   )   (1,750   )    (7,000   )   (7,000  )
perpetual preferred units

Net income (loss)
attributable to common         ($79,286 )   ($34,909 )    ($50,800 ) $ 70,973
shareholders

CONDENSED CONSOLIDATED
STATEMENTS OF OTHER
COMPREHENSIVE INCOME

Net income (loss)              ($79,387 )   ($32,507 )    ($44,203 ) $ 82,025

Other comprehensive income
(loss)

Unrealized loss on cash        (1,984   )   (36,109  )    (12,291  )   (44,386 )
flow hedging activities

Reclassification of net
losses on cash flow hedging    5,750        2,442         22,192       9,317
activities

Gain on postretirement         -            33            -            136
obligations

Comprehensive income (loss)    (75,621  )   (66,141  )    (34,302  )   47,092

Less (income) loss
allocated to noncontrolling    1,851        (652     )    403          (4,052  )
interests

Less income allocated to       (1,750   )   (1,750   )    (7,000   )   (7,000  )
perpetual preferred units

Comprehensive income (loss)
attributable to common         ($75,520 )   ($68,543 )    ($40,899 ) $ 36,040
shareholders

PER SHARE DATA

Net income (loss)
attributable to common         ($1.19   )   ($0.63   )    ($0.80   ) $ 1.28
shareholders - basic

Net income (loss)
attributable to common         (1.19    )   (0.63    )    (0.80    )   1.28
shareholders - diluted

Income (loss) from
continuing operations          (1.19    )   (0.64    )    (1.09    )   (0.26   )
attributable to common
shareholders - basic

Income (loss) from
continuing operations          (1.19    )   (0.64    )    (1.09    )   (0.26   )
attributable to common
shareholders - diluted

Weighted average number of
common and

common equivalent shares
outstanding:

Basic                          66,134       55,401        62,359       55,272

Diluted                        66,134       55,401        62,359       55,272

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 OPERATIONS          2009       2008          2009         2008

Net income (loss)
attributable to common         ($79,286 )   ($34,909 )    ($50,800 ) $ 70,973
shareholders

Real estate depreciation and
amortization from continuing   42,773       42,403        170,480      168,264
operations

Real estate depreciation from  -            -             -            2,745
discontinued operations

Adjustments for                1,988        1,960         7,800        7,103
unconsolidated joint ventures

Income (loss) allocated to     (1,794   )   573           (646     )   3,617
noncontrolling interests

Gain (loss) on sale of
operating properties, net of   -            -             -            (2,929  )
taxes

Gain (loss) on sale of         -            77            (16,887  )   (80,188 )
discontinued operations

Funds from operations -        ($36,319 ) $ 10,104      $ 109,947    $ 169,585
diluted

PER SHARE DATA

Funds from operations -        ($0.53   ) $ 0.17        $ 1.68       $ 2.90
diluted

Cash distributions             0.45         0.70          2.05         2.80

Weighted average number of
common and

common equivalent shares
outstanding:

FFO - diluted                  69,119       58,398        65,266       58,528

PROPERTY DATA

Total operating properties     183          181           183          181
(end of period) (a)

Total operating apartment
homes in operating properties  63,286       62,903        63,286       62,903
(end of period) (a)

Total operating apartment      50,515       50,509        50,608       51,277
homes (weighted average)

Total operating apartment
homes - excluding              50,515       49,838        50,272       49,312
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,

                2009            2009            2009            2009            2008

ASSETS

Real estate
assets, at
cost

Land            $ 747,921       $ 746,825       $ 746,936       $ 746,935       $ 744,059

Buildings and     4,512,124       4,484,335       4,473,906       4,466,296       4,447,587
improvements

                  5,260,045       5,231,160       5,220,842       5,213,231       5,191,646

Accumulated       (1,149,056 )    (1,107,227 )    (1,065,861 )    (1,023,466 )    (981,049  )
depreciation

Net operating
real estate       4,110,989       4,123,933       4,154,981       4,189,765       4,210,597
assets

Properties
under             201,581         279,620         268,655         258,239         264,188
development
and land

Investments in    43,542          43,236          22,334          15,158          15,106
joint ventures

Properties
held for sale,    -               6,622           6,732           20,696          20,653
including land

Total real        4,356,112       4,453,411       4,452,702       4,483,858       4,510,544
estate assets

Accounts
receivable -      36,112          35,971          35,909          36,105          37,000
affiliates

Notes
receivable

Affiliates        45,847          54,462          54,033          58,481          58,109

Other             -               -               -               -               8,710

Other assets,     102,114         104,669         92,421          84,905          103,013
net (a)

Cash and cash     64,156          81,683          157,665         7,256           7,407
equivalents

Restricted        3,658           3,901           5,190           4,437           5,559
cash

Total assets    $ 4,607,999     $ 4,734,097     $ 4,797,920     $ 4,675,042     $ 4,730,342

LIABILITIES
AND
SHAREHOLDERS'
EQUITY

Liabilities

Notes payable

Unsecured       $ 1,645,926     $ 1,646,106     $ 1,728,150     $ 2,151,492     $ 2,103,187

Secured           979,273         976,051         969,668         680,631         729,209

Accounts
payable and       74,420          78,466          65,012          73,250          82,575
accrued
expenses

Accrued real      23,241          42,386          30,154          19,113          23,600
estate taxes

Other             145,176         145,464         132,763         137,397         149,554
liabilities(b)

Distributions     33,025          33,028          33,050          43,136          42,936
payable

Total             2,901,061       2,921,501       2,958,797       3,105,019       3,131,061
liabilities

Commitments
and
contingencies

Perpetual
preferred         97,925          97,925          97,925          97,925          97,925
units

Shareholders'
equity

Common shares
of beneficial     770             770             769             666             660
interest

Additional
paid-in           2,525,656       2,522,525       2,517,788       2,242,940       2,237,703
capital

Distributions
in excess of
net income        (492,571   )    (383,265   )    (357,168   )    (345,481   )    (312,309  )
attributable
to common
shareholders

Notes
receivable        (101       )    (101       )    (287       )    (291       )    (295      )
secured by
common shares

Treasury
shares, at        (462,188   )    (462,188   )    (462,751   )    (462,751   )    (463,209  )
cost

Accumulated
other             (41,155    )    (44,921    )    (41,886    )    (48,716    )    (51,056   )
comprehensive
loss (c)

Total common
shareholders'     1,530,411       1,632,820       1,656,465       1,386,367       1,411,494
equity

Noncontrolling    78,602          81,851          84,733          85,731          89,862
interest

Total
shareholders'     1,609,013       1,714,671       1,741,198       1,472,098       1,501,356
equity

Total
liabilities
and             $ 4,607,999     $ 4,734,097     $ 4,797,920     $ 4,675,042     $ 4,730,342
shareholders'
equity

(a) includes:

net deferred    $ 11,113        $ 11,617        $ 12,108        $ 10,061        $ 10,505
charges of:

(b) includes:

deferred        $ 2,664         $ 2,938         $ 3,183         $ 2,402         $ 2,640
revenues of:

distributions
in excess of
investments in  $ 31,410        $ 30,507        $ 30,287        $ 31,318        $ 30,105
joint ventures
of:

fair value
adjustment of   $ 41,083        $ 44,730        $ 41,797        $ 48,693        $ 51,068
derivative
instruments:

(c) Represents the fair value adjustment of derivative instruments and gain on post
retirement obligations.



 

CAMDEN

                                                   2010 Financial Outlook

                                                   as of February 8, 2010

(Unaudited)

2009 Reported FFO, Adjusted for Non-Routine Items

                                                   Total     Per Share

2009 Reported FFO                                  $109,947  $1.68

Adjustments for non-routine items:

Plus: Impairment associated with land development  85,614    1.31
activities

Plus: Loss on early retirement of debt             2,550     0.04

2009 FFO adjusted for non-routine items            $198,111  $3.04

2009 Fully Diluted Shares Outstanding - FFO                  65,266

December 31, 2009 Fully Diluted Shares Outstanding           69,190
- FFO

2009 FFO adjusted for non-routine items and
December 31, 2009 Fully Diluted Shares Outstanding           $2.86
- FFO

2010 Financial Outlook

Earnings Guidance - Per Diluted Share

Expected net income attributable to common                   ($0.24) - $0.06
shareholders per share - diluted

Expected real estate depreciation                            $2.43

Expected adjustments for unconsolidated joint                $0.13
ventures

Expected income allocated to noncontrolling                  $0.03
interests

Expected FFO per share - diluted                             $2.35 - $2.65

"Same Property" Communities

Number of Units                                              47,359

2009 Base Net Operating Income                               $353 million

Total Revenue Growth                                         (4.25%) - (2.25%)

Total Expense Growth                                         2.00% - 3.50%

Net Operating Income Growth                                  (8.50%) - (5.50%)

Physical Occupancy                                           94.00%

Impact from 1.0% change in NOI Growth is
approximately $0.05 / share

Acquisitions/Dispositions

Future Dispositions Volume                                   $0 - $100 million

Future Acquisitions Volume (consolidated on                  $0 - $100 million
balance sheet)

Future Acquisitions Volume (joint venture)                   $200 - $500 million

Development

Development Starts (consolidated on balance sheet)           $0 - $150 million

Development Starts (joint venture)                           $0 - $150 million

2010 Incremental FFO Dilution vs. 2009 from
Impaired Assets (excludes 2009 impairment loss on            ($6.5 million)
land)

Capitalized Maintenance Expenditures                         $35 - $40 million

Non-Property Income

Non-Property Income, Net                                     $5 - $7 million

Includes: Fee and asset management income, net of
expenses and

Interest and other income

Corporate Expenses

General and Administrative and Property Management           $48 - $52 million
Expense

Debt

Capitalized Interest                                         $4 - $6 million

Expensed Interest                                            $127 - $130 million

30 Day LIBOR (average)                                       0.58%

Note: Please refer to pages 29 and 30 for definitions and reconciliations of all
non-GAAP financial measures presented in this document.

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 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           Twelve Months Ended

                          December 31,                 December 31,

                          2009           2008          2009           2008

Net income (loss)
attributable to common      ($79,286 )   ($34,909 )      ($50,800 ) $ 70,973
shareholders

Real estate depreciation
and amortization from       42,773       42,403          170,480      168,264
continuing operations

Real estate depreciation
from discontinued           -            -               -            2,745
operations

Adjustments for
unconsolidated joint        1,988        1,960           7,800        7,103
ventures

Income (loss) allocated
to noncontrolling           (1,794   )   573             (646     )   3,617
interests

Gain (loss) on sale of
operating properties,       -            -               -            (2,929  )
net of taxes

Gain (loss) on sale of      -            77              (16,887  )   (80,188 )
discontinued operations

Funds from operations -     ($36,319 ) $ 10,104        $ 109,947    $ 169,585
diluted

Weighted average number
of common and common
equivalent shares
outstanding:

EPS diluted                 66,134       55,401          62,359       55,272

FFO diluted                 69,119       58,398          65,266       58,528

Net income attributable
to common shareholders -    ($1.19   )   ($0.63   )      ($0.80   ) $ 1.28
diluted

FFO per common share -      ($0.53   ) $ 0.17          $ 1.68       $ 2.90
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 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:

                          1Q10 Range                   2010 Range

                          Low          High            Low          High

Expected net income
attributable to common      ($0.01   ) $ 0.03            ($0.24   ) $ 0.06
shareholders per share -
diluted

Expected real estate        0.61         0.61            2.43         2.43
depreciation

Expected adjustments for
unconsolidated joint        0.03         0.03            0.13         0.13
ventures

Expected income
allocated to                0.01         0.01            0.03         0.03
noncontrolling interests

Expected FFO per share -    0.64         0.68          $ 2.35       $ 2.65
diluted

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
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           Twelve Months Ended

                          December 31,                 December 31,

                            2009         2008            2009         2008

Net income (loss)
attributable to common      ($79,286 )   ($34,909 )      ($50,800 ) $ 70,973
shareholders

Less: Fee and asset         (1,915   )   (2,274   )      (8,008   )   (9,167  )
management income

Less: Interest and other    (412     )   (1,077   )      (2,826   )   (4,736  )
income

Less: (Income) loss on
deferred compensation       (2,907   )   13,713          (14,609  )   33,443
plans

Plus: Property              5,016        4,722           18,864       19,910
management expense

Plus: Fee and asset         1,366        1,435           4,878        6,054
management expense

Plus: General and           8,233        7,699           31,243       31,586
administrative expense

Plus: Interest expense      30,932       33,702          128,296      132,399

Plus: Depreciation and      43,919       43,300          174,682      171,814
amortization

Plus: Amortization of       1,569        837             3,925        2,958
deferred financing costs

Plus: (Expense) benefit
on deferred compensation    2,907        (13,713  )      14,609       (33,443 )
plans

Less: Gain on sale of
properties, including       -            -               -            (2,929  )
land

Less: (Gain) loss on        -            (8,828   )      2,550        (13,566 )
early retirement of debt

Less: Equity in (income)    (103     )   483             (695     )   1,265
loss of joint ventures

Plus: Impairment
associated with land        85,614       51,323          85,614       51,323
development activities

Plus: Income allocated
to perpetual preferred      1,750        1,750           7,000        7,000
units

Plus: Income (loss)
allocated to                (1,851   )   652             (403     )   4,052
noncontrolling interests

Plus: Income tax expense    195          327             967          843
- current

Less: Income from           -            (619     )      (1,341   )   (4,847  )
discontinued operations

Less: (Gain) loss on
sale of discontinued        -            77              (16,887  )   (80,198 )
operations

Net Operating Income      $ 95,027     $ 98,600        $ 377,059    $ 384,734
(NOI)

"Same Property"           $ 78,257     $ 82,810        $ 314,342    $ 334,426
Communities

Non-"Same Property"         14,758       13,791          55,969       43,833
Communities

Development and Lease-Up    797          450             2,499        698
Communities

Redevelopment               787          744             2,886        3,000
Communities

Dispositions / Other        428          805             1,363        2,777

Net Operating Income      $ 95,027     $ 98,600        $ 377,059    $ 384,734
(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) loss of joint ventures, gain on sale of
real estate assets, impairment associated with land development activities,
(gain) loss on early retirement of debt, and income (loss) 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           Twelve Months Ended

                          December 31,                 December 31,

                            2009         2008            2009         2008

Net income (loss)
attributable to common      ($79,286 )   ($34,909 )      ($50,800 ) $ 70,973
shareholders

Plus: Interest expense      30,932       33,702          128,296      132,865

Plus: Amortization of       1,569        837             3,925        2,958
deferred financing costs

Plus: Depreciation and      43,919       43,300          174,682      171,814
amortization

Plus: Income allocated
to perpetual preferred      1,750        1,750           7,000        7,000
units

Plus: Income (loss)
allocated to                (1,851   )   652             (403     )   4,052
noncontrolling interests

Plus: Income tax expense    195          327             967          843
- current

Plus: Real estate
depreciation and            -            -               -            2,762
amortization from
discontinued operations

Less: Gain on sale of
properties, including       -            -               -            (2,929  )
land

Less: (Gain) loss on        -            (8,828   )      2,550        (13,566 )
early retirement of debt

Less: Equity in (income)    (103     )   483             (695     )   1,265
loss of joint ventures

Plus: Impairment
associated with land        85,614       51,323          85,614       51,323
development activities

Less: (Gain) loss on
sale of discontinued        -            77              (16,887  )   (80,198 )
operations

EBITDA                    $ 82,739     $ 88,714        $ 334,249    $ 349,162



 

 

    Source: Camden Property Trust
Contact: Camden Property Trust Kim Callahan, 713-354-2549