HOUSTON--(BUSINESS WIRE)--
Camden Property Trust (NYSE:CPT) announced today a reduction in the
number of planned development projects it anticipates undertaking and
the charges related to such actions. These decisions were the result of
Camden's quarterly strategic review taking into consideration the
current and anticipated economic climate.
The Company will recognize a charge of approximately $85.6 million in
the fourth quarter of 2009. The charge reflects a $72.2 million non-cash
reduction to the previous carrying value of $109.9 million for land
holdings for eight future projects the Company has put on hold for the
foreseeable future, and a $13.4 million charge associated with a land
development joint venture. These reductions primarily reflect the
decline in fair market value below the carrying value of these
investments. Camden will also cease capitalizing interest and expenses
associated with these assets.
Camden currently has five wholly-owned land parcels held for future
development, with a total cost basis of approximately $89.6 million,
which are not affected by these actions. Camden plans to continue its
predevelopment activities for these five wholly-owned land parcels in
2010. The Company currently does not anticipate starting any new
development during the first half of 2010, and future development starts
will be evaluated based on the Company's then current assessment of
market, economic and capital markets conditions.
Camden currently has 372 apartment homes under development at two
multifamily properties, including 119 apartment homes at a multifamily
property owned through a non-consolidated joint venture and 253 homes at
a multifamily property owned through a consolidated joint venture in
which Camden owns an interest. Less than $10.0 million remains to be
funded for these development projects, and the Company expects the
remaining expenditures to be funded from existing construction loans.
"Development remains a core competency for Camden," said Richard Campo,
Chairman and Chief Executive Officer. "We believe that market conditions
will improve in the future, allowing us to start some of the projects we
have delayed."
Excluding the charges mentioned above, Camden currently expects fourth
quarter 2009 Funds from Operations ("FFO") per diluted share to be
within the range set forth in its third quarter earnings release issued
on October 29, 2009, which release also contained a reconciliation of
expected FFO to expected earnings per share.
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.
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, placing 10th on the list.
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.
Source: Camden Property Trust
Contact: Camden Property Trust
Kim Callahan, 713-354-2549