HOUSTON--(BUSINESS WIRE)--
Camden Property Trust (NYSE: CPT) today announced operating results for
the three and nine months ended September 30, 2010.
Funds From Operations
FFO for the third quarter of 2010 totaled $0.65 per diluted share or
$46.7 million, as compared to $0.70 per diluted share or $48.1 million
for the same period in 2009. FFO for the nine months ended September 30,
2010 totaled $1.98 per diluted share or $140.4 million, as compared to
$2.29 per diluted share or $146.3 million for the same period in 2009.
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.
Net Income Attributable to Common Shareholders
(“EPS”)
The Company reported net income attributable to common shareholders
(“EPS”) of $1.7 million or $0.02 per diluted share for the third quarter
of 2010, as compared to $3.9 million or $0.06 per diluted share for the
same period in 2009.
For the nine months ended September 30, 2010, net income attributable to
common shareholders totaled $6.1 million or $0.09 per diluted share, as
compared to $28.5 million or $0.46 per diluted share for the same period
in 2009. 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.
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 46,757 apartment homes included in consolidated same property
results, third quarter 2010 same property NOI declined 0.6% compared to
the third quarter of 2009, with revenues declining 0.9% and expenses
declining 1.5%. On a sequential basis, third quarter 2010 same property
NOI increased 0.4% compared to the second quarter of 2010, with revenues
increasing 1.1% and expenses increasing 2.2% compared to the prior
quarter. On a year-to-date basis, 2010 same property NOI declined 4.6%,
with revenues declining 3.0% and expenses declining 0.5% compared to the
same period in 2009. Same property physical occupancy levels for the
portfolio averaged 94.3% during the third quarter of 2010, compared to
93.9% in the third quarter of 2009 and 94.2% in the second quarter of
2010.
The Company defines same property communities as communities owned and
stabilized as of January 1, 2009, excluding properties held for sale and
communities under major 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.
Acquisition Activity
The Company completed two acquisitions during the quarter for
approximately $41 million through its Multifamily Value Add Fund, in
which it has a 20% interest: Camden Yorktown, a 306-home stabilized
apartment community in Houston, TX; and Camden Ivy Hall, a 110-home
development community in Atlanta, GA.
The ownership of Camden Main & Jamboree, one of the Company’s joint
venture communities, was restructured during the quarter, resulting in
Camden’s ownership interest increasing from 30.0% to 99.9%. The Company
previously accounted for this joint venture under the equity method of
accounting. Following the restructuring, Camden has consolidated this
entity for financial reporting purposes. The Company did not record a
gain or loss on the restructuring, as the net consideration approximated
the fair market value of the net assets received.
Development Activity
During the third quarter, the Company commenced construction on two new
development communities: Camden Lake Nona, a $61.0 million project in
Orlando, FL; and Camden Summerfield II, a $32.0 million project in
Landover, MD. Initial occupancy at these communities is scheduled for
late 2011 and mid-2012 respectively, with construction completions
expected in late 2012.
Camden also completed lease-up of one fully-consolidated joint venture
community during the quarter: Camden Travis Street, a $30.9 million
project that is currently 97% leased. The Company has three additional
joint venture communities in lease-up: Belle Meade, a $37.6 million
project that is currently 89% leased; Braeswood Place, a $50.2 million
project that is currently 83% leased; and Camden Ivy Hall, a $17.5
million project that is currently 53% leased.
The Company has nine additional development communities which may begin
construction in late 2010 through 2012.
Equity Issuance
During the third quarter, Camden issued 0.6 million common shares
through its at-the-market (“ATM”) share offering program at an average
price of $48.05 per share, for total net consideration of approximately
$28.2 million. Subsequent to quarter-end, the Company issued 1.0 million
common shares through its at-the-market (“ATM”) share offering program
at an average price of $49.25 per share, for total net consideration of
approximately $50.4 million. Year-to-date, Camden has issued
approximately 4.0 million common shares through its ATM program at an
average price of $47.52 per share, for total net consideration of
approximately $185.0 million.
“We have continued to strengthen our balance sheet over the past several
quarters and have reduced leverage by issuing equity through our ATM
program,” said Richard Campo, Camden’s Chairman & Chief Executive
Officer. “These proceeds will be used to help fund our new development
projects in a leverage-neutral way.”
Earnings Guidance
Camden updated its earnings guidance for 2010 based on its view of the
current and expected apartment market and general economic conditions.
Full-year 2010 FFO is expected to be $2.64 to $2.68 per diluted share,
and full-year 2010 EPS is expected to be $0.14 to $0.18 per diluted
share. Fourth quarter 2010 earnings guidance is $0.66 to $0.70 per
diluted share for FFO and $0.05 to $0.09 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 2010 earnings guidance is based on projections of same
property revenue declines between 1.75% and 2.25%, expense growth
between 0.5% and 1.0%, and NOI declines between 3.5% and 4.5%.
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.
Camden expects to issue earnings guidance for 2011 in conjunction with
its fourth quarter 2010 earnings release on February 4, 2011.
Conference Call
The Company will hold a conference call on Friday, November 5, 2010 at
11:00 a.m. Central Time to review its third quarter 2010 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: 3001742, 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. Factors which may cause
the Company’s actual results or performance to differ materially from
those contemplated by forward-looking statements are described under the
heading “Risk Factors” in Camden’s Annual Report on Form 10-K and
in other filings with the Securities and Exchange Commission (SEC).
Forward-looking statements made in today’s press release represent
management’s current opinions, and the Company assumes no obligation to
update or supplement these statements because of subsequent events.
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 186 properties containing 63,964 apartment homes across
the United States. Upon completion of three properties under
development, the Company’s portfolio will increase to 64,681 apartment
homes in 189 properties. Camden was recently named by FORTUNE® 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.
| | |
| | |
| 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 | 2010 | 2009 | | 2010 | 2009 |
| Property revenues | | | | | |
|
Rental revenues
|
$
|
133,601
| |
$
|
132,758
| | |
$
|
395,258
| |
$
|
403,248
| |
|
Other property revenues
|
|
22,675
|
|
|
22,467
|
| |
|
65,519
|
|
|
64,271
|
|
|
Total property revenues
|
|
156,276
|
|
|
155,225
|
| |
|
460,777
|
|
|
467,519
|
|
| | | | |
|
| Property expenses | | | | | |
|
Property operating and maintenance
| |
47,430
| | |
46,266
| | | |
135,844
| | |
132,285
| |
|
Real estate taxes
|
|
16,817
|
|
|
17,803
|
| |
|
53,359
|
|
|
54,692
|
|
|
Total property expenses
|
|
64,247
|
|
|
64,069
|
| |
|
189,203
|
|
|
186,977
|
|
| | | | |
|
| Non-property income | | | | | |
|
Fee and asset management income
| |
2,145
| | |
1,818
| | | |
6,028
| | |
6,093
| |
|
Interest and other income
| |
451
| | |
582
| | | |
3,988
| | |
2,414
| |
|
Income on deferred compensation plans
|
|
6,918
|
|
|
8,194
|
| |
|
6,818
|
|
|
11,702
|
|
|
Total non-property income
|
|
9,514
|
|
|
10,594
|
| |
|
16,834
|
|
|
20,209
|
|
| | | | |
|
| Other expenses | | | | | |
|
Property management
| |
4,789
| | |
4,377
| | | |
14,994
| | |
13,848
| |
|
Fee and asset management
| |
1,155
| | |
1,074
| | | |
3,611
| | |
3,512
| |
|
General and administrative
| |
7,568
| | |
7,532
| | | |
22,339
| | |
23,010
| |
|
Interest
| |
31,781
| | |
31,117
| | | |
95,078
| | |
97,364
| |
|
Depreciation and amortization
| |
43,685
| | |
42,697
| | | |
129,963
| | |
130,197
| |
|
Amortization of deferred financing costs
| |
1,185
| | |
682
| | | |
2,624
| | |
2,356
| |
|
Expense on deferred compensation plans
|
|
6,918
|
|
|
8,194
|
| |
|
6,818
|
|
|
11,702
|
|
|
Total other expenses
|
|
97,081
|
|
|
95,673
|
| |
|
275,427
|
|
|
281,989
|
|
| | | | |
|
|
Gain on sale of properties, including land
| |
-
| | |
-
| | | |
236
| | |
-
| |
|
Loss on early retirement of debt
| |
-
| | |
-
| | | |
-
| | |
(2,550
|
)
|
|
Equity in income (loss) of joint ventures
|
|
(244
|
)
|
|
(38
|
)
| |
|
(785
|
)
|
|
592
|
|
| Income from continuing operations before income taxes | | 4,218 | | | 6,039 | | | | 12,432 | | | 16,804 | |
|
Income tax expense - current
|
|
(712
|
)
|
|
(126
|
)
| |
|
(1,286
|
)
|
|
(772
|
)
|
| Income from continuing operations | | 3,506 | | | 5,913 | | | | 11,146 | | | 16,032 | |
|
Income from discontinued operations
| |
326
| | |
279
| | | |
715
| | |
2,265
| |
|
Gain on sale of discontinued operations
|
|
-
|
|
|
-
|
| |
|
-
|
|
|
16,887
|
|
| Net income | | 3,832 | | | 6,192 | | | | 11,861 | | | 35,184 | |
|
Less income allocated to noncontrolling interests from continuing
operations
| |
(432
|
)
| |
(505
|
)
| | |
(542
|
)
| |
(1,448
|
)
|
|
Less income allocated to perpetual preferred units
|
|
(1,750
|
)
|
|
(1,750
|
)
| |
|
(5,250
|
)
|
|
(5,250
|
)
|
| Net income attributable to common shareholders | $ | 1,650 |
| $ | 3,937 |
| | $ | 6,069 |
| $ | 28,486 |
|
| | | | |
|
| | | | |
|
CONDENSED CONSOLIDATED STATEMENTS OF
OTHER COMPREHENSIVE INCOME | | | | | |
| Net income | $ | 3,832 | | $ | 6,192 | | | $ | 11,861 | | $ | 35,184 | |
| Other comprehensive income (loss) | | | | | |
|
Unrealized loss on cash flow hedging activities
| |
(5,323
|
)
| |
(8,732
|
)
| | |
(19,549
|
)
| |
(10,307
|
)
|
|
Reclassification of net losses on cash flow hedging activities
| |
5,825
| | |
5,697
| | | |
17,488
| | |
16,442
| |
|
Unrealized gain on available-for-sale securities, net of tax
|
|
1,914
|
|
|
-
|
| |
|
1,914
|
|
|
-
|
|
| Comprehensive income | | 6,248 | | | 3,157 | | | | 11,714 | | | 41,319 | |
|
Less income allocated to noncontrolling interests from continuing
operations
| |
(432
|
)
| |
(505
|
)
| | |
(542
|
)
| |
(1,448
|
)
|
|
Less income allocated to perpetual preferred units
|
|
(1,750
|
)
|
|
(1,750
|
)
| |
|
(5,250
|
)
|
|
(5,250
|
)
|
| Comprehensive income attributable to common shareholders | $ | 4,066 |
| $ | 902 |
| | $ | 5,922 |
| $ | 34,621 |
|
| | | | |
|
| | | | |
|
PER SHARE DATA | | | | | |
|
Net income attributable to common shareholders - basic
|
$
|
0.02
| |
$
|
0.06
| | |
$
|
0.09
| |
$
|
0.46
| |
|
Net income attributable to common shareholders - diluted
| |
0.02
| | |
0.06
| | | |
0.09
| | |
0.46
| |
|
Income from continuing operations attributable to common
shareholders - basic
| |
0.02
| | |
0.06
| | | |
0.08
| | |
0.15
| |
|
Income from continuing operations attributable to common
shareholders - diluted
| |
0.02
| | |
0.06
| | | |
0.08
| | |
0.15
| |
| | | | |
|
| Weighted average number of common and | | | | | |
| common equivalent shares outstanding: | | | | | |
|
Basic
| |
69,100
| | |
66,094
| | | |
67,898
| | |
61,087
| |
|
Diluted
| |
69,441
| | |
66,602
| | | |
68,169
| | |
61,579
| |
| | | | |
|
|
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 | | 2010 |
| 2009 | | 2010 |
| 2009 |
| | | | | | | |
|
| Net income attributable to common shareholders | | $ | 1,650 | | $ | 3,937 | | $ | 6,069 | | $ | 28,486 | |
|
Real estate depreciation from continuing operations
| | |
42,457
| | |
41,636
| | |
126,350
| | |
127,141
| |
|
Real estate depreciation from discontinued operations
| | |
-
| | |
198
| | |
325
| | |
566
| |
|
Adjustments for unconsolidated joint ventures
| | |
2,292
| | |
1,935
| | |
6,753
| | |
5,812
| |
|
Income allocated to noncontrolling interests
| | |
281
| | |
406
| | |
864
| | |
1,148
| |
|
Gain on sale of discontinued operations
| |
|
-
|
|
|
-
| |
|
-
|
|
|
(16,887
|
)
|
| Funds from operations - diluted | | $ | 46,680 |
| $ | 48,112 | | $ | 140,361 |
| $ | 146,266 |
|
| | | | | | | |
|
PER SHARE DATA | | | | | | | | |
|
Funds from operations - diluted
| |
$
|
0.65
| |
$
|
0.70
| |
$
|
1.98
| |
$
|
2.29
| |
|
Cash distributions
| | |
0.45
| | |
0.45
| | |
1.35
| | |
1.60
| |
| | | | | | | |
|
| Weighted average number of common and | | | | | | | | |
| common equivalent shares outstanding: | | | | | | | | |
|
FFO - diluted
| | |
72,025
| | |
68,959
| | |
70,779
| | |
63,967
| |
| | | | | | | |
|
PROPERTY DATA | | | | | | | | |
|
Total operating properties (end of period) (a) | | |
186
| | |
183
| | |
186
| | |
183
| |
|
Total operating apartment homes in operating properties (end of
period) (a) | | |
63,964
| | |
63,286
| | |
63,964
| | |
63,286
| |
|
Total operating apartment homes (weighted average)
| | |
50,929
| | |
50,383
| | |
50,729
| | |
50,639
| |
|
Total operating apartment homes - excluding discontinued operations
(weighted average)
| | |
50,327
| | |
49,781
| | |
50,127
| | |
49,589
| |
| | | | | | | |
|
| (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, |
| | 2010 |
| 2010 |
| 2010 |
| 2009 |
| 2009 |
| ASSETS | | | | | | | | | | |
|
Real estate assets, at cost
| | | | | | | | | | |
|
Land
| |
$
|
763,559
| | |
$
|
746,195
| | |
$
|
748,604
| | |
$
|
747,921
| | |
$
|
746,825
| |
|
Buildings and improvements
| |
|
4,613,036
|
|
|
|
4,521,376
|
|
|
|
4,527,523
|
|
|
|
4,512,124
|
|
|
|
4,484,335
|
|
| | |
5,376,595
| | | |
5,267,571
| | | |
5,276,127
| | | |
5,260,045
| | | |
5,231,160
| |
|
Accumulated depreciation
| |
|
(1,263,173
|
)
|
|
|
(1,221,422
|
)
|
|
|
(1,191,604
|
)
|
|
|
(1,149,056
|
)
|
|
|
(1,107,227
|
)
|
|
Net operating real estate assets
| | |
4,113,422
| | | |
4,046,149
| | | |
4,084,523
| | | |
4,110,989
| | | |
4,123,933
| |
|
Properties under development and land
| | |
198,377
| | | |
199,012
| | | |
196,371
| | | |
201,581
| | | |
279,620
| |
|
Investments in joint ventures
| | |
33,226
| | | |
50,392
| | | |
42,994
| | | |
43,542
| | | |
43,236
| |
|
Properties held for sale, including land
| |
|
9,737
|
|
|
|
9,692
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,622
|
|
|
Total real estate assets
| | |
4,354,762
| | | |
4,305,245
| | | |
4,323,888
| | | |
4,356,112
| | | |
4,453,411
| |
|
Accounts receivable - affiliates
| | |
32,269
| | | |
31,993
| | | |
32,657
| | | |
36,112
| | | |
35,971
| |
|
Notes receivable - affiliates
| | |
17,509
| | | |
38,478
| | | |
46,118
| | | |
45,847
| | | |
54,462
| |
|
Other assets, net (a) | | |
105,950
| | | |
87,371
| | | |
92,983
| | | |
102,114
| | | |
104,669
| |
|
Cash and cash equivalents
| | |
91,071
| | | |
128,155
| | | |
28,553
| | | |
64,156
| | | |
81,683
| |
|
Restricted cash
| |
|
5,174
|
|
|
|
3,738
|
|
|
|
3,680
|
|
|
|
3,658
|
|
|
|
3,901
|
|
|
Total assets
| |
$
|
4,606,735
|
|
|
$
|
4,594,980
|
|
|
$
|
4,527,879
|
|
|
$
|
4,607,999
|
|
|
$
|
4,734,097
|
|
| | | | | | | | | |
|
| | | | | | | | | |
|
| | | | | | | | | |
|
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | | |
|
Liabilities
| | | | | | | | | | |
|
Notes payable
| | | | | | | | | | |
|
Unsecured
| |
$
|
1,507,858
| | |
$
|
1,590,287
| | |
$
|
1,590,473
| | |
$
|
1,645,926
| | |
$
|
1,646,106
| |
|
Secured
| | |
1,034,354
| | | |
981,816
| | | |
980,188
| | | |
979,273
| | | |
976,051
| |
|
Accounts payable and accrued expenses
| | |
82,598
| | | |
63,663
| | | |
69,858
| | | |
74,420
| | | |
78,466
| |
|
Accrued real estate taxes
| | |
40,340
| | | |
28,416
| | | |
17,005
| | | |
23,241
| | | |
42,386
| |
|
Other liabilities (b) | | |
144,146
| | | |
137,020
| | | |
138,136
| | | |
145,176
| | | |
145,464
| |
|
Distributions payable
| |
|
34,548
|
|
|
|
34,275
|
|
|
|
33,403
|
|
|
|
33,025
|
|
|
|
33,028
|
|
|
Total liabilities
| | |
2,843,844
| | | |
2,835,477
| | | |
2,829,063
| | | |
2,901,061
| | | |
2,921,501
| |
| | | | | | | | | |
|
|
Commitments and contingencies
| | | | | | | | | | |
| | | | | | | | | |
|
|
Perpetual preferred units
| | |
97,925
| | | |
97,925
| | | |
97,925
| | | |
97,925
| | | |
97,925
| |
| | | | | | | | | |
|
|
Shareholders' equity
| | | | | | | | | | |
|
Common shares of beneficial interest
| | |
804
| | | |
798
| | | |
778
| | | |
770
| | | |
770
| |
|
Additional paid-in capital
| | |
2,673,606
| | | |
2,641,354
| | | |
2,548,722
| | | |
2,525,656
| | | |
2,522,525
| |
|
Distributions in excess of net income attributable to common
shareholders
| | |
(580,046
|
)
| | |
(550,039
|
)
| | |
(520,798
|
)
| | |
(492,571
|
)
| | |
(383,265
|
)
|
|
Notes receivable secured by common shares
| | |
-
| | | |
(102
|
)
| | |
(101
|
)
| | |
(101
|
)
| | |
(101
|
)
|
|
Treasury shares, at cost
| | |
(461,255
|
)
| | |
(461,517
|
)
| | |
(461,517
|
)
| | |
(462,188
|
)
| | |
(462,188
|
)
|
|
Accumulated other comprehensive loss (c) | |
|
(41,302
|
)
|
|
|
(43,718
|
)
|
|
|
(42,093
|
)
|
|
|
(41,155
|
)
|
|
|
(44,921
|
)
|
|
Total common shareholders' equity
| | |
1,591,807
| | | |
1,586,776
| | | |
1,524,991
| | | |
1,530,411
| | | |
1,632,820
| |
|
Noncontrolling interest
| |
|
73,159
|
|
|
|
74,802
|
|
|
|
75,900
|
|
|
|
78,602
|
|
|
|
81,851
|
|
|
Total shareholders' equity
| |
|
1,664,966
|
|
|
|
1,661,578
|
|
|
|
1,600,891
|
|
|
|
1,609,013
|
|
|
|
1,714,671
|
|
|
Total liabilities and shareholders' equity
| |
$
|
4,606,735
|
|
|
$
|
4,594,980
|
|
|
$
|
4,527,879
|
|
|
$
|
4,607,999
|
|
|
$
|
4,734,097
|
|
| | | | | | | | | |
|
| | | | | | | | | |
|
| | | | | | | | | |
|
| (a) includes: | | | | | | | | | | |
| net deferred charges of: | | $ | 14,892 | | | $ | 10,193 | | | $ | 10,704 | | | $ | 11,113 | | | $ | 11,617 | |
| | | | | | | | | |
|
| (b) includes: | | | | | | | | | | |
| deferred revenues of: | | $ | 2,347 | | | $ | 2,467 | | | $ | 2,467 | | | $ | 2,664 | | | $ | 2,938 | |
| distributions in excess of investments in joint ventures of: | | $ | 34,045 | | | $ | 33,074 | | | $ | 32,195 | | | $ | 31,410 | | | $ | 30,507 | |
| fair value adjustment of derivative instruments: | | $ | 43,267 | | | $ | 43,757 | | | $ | 42,119 | | | $ | 41,083 | | | $ | 44,730 | |
| | | | | | | | | |
|
| (c) Represents the fair value adjustment of derivative
instruments, gain on post retirement obligations and unrealized gain
on available-for-sale securities, net of tax. |
| | |
| | |
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, |
| 2010 | 2009 | | 2010 | 2009 |
|
Net income attributable to common shareholders
|
$
|
1,650
|
$
|
3,937
| |
$
|
6,069
|
$
|
28,486
| |
|
Real estate depreciation from continuing operations
| |
42,457
| |
41,636
| | |
126,350
| |
127,141
| |
|
Real estate depreciation from discontinued operations
| |
-
| |
198
| | |
325
| |
566
| |
|
Adjustments for unconsolidated joint ventures
| |
2,292
| |
1,935
| | |
6,753
| |
5,812
| |
|
Income allocated to noncontrolling interests
| |
281
| |
406
| | |
864
| |
1,148
| |
|
Gain on sale of discontinued operations
|
|
-
|
|
-
| |
|
-
|
|
(16,887
|
)
|
|
Funds from operations - diluted
|
$
|
46,680
|
$
|
48,112
| |
$
|
140,361
|
$
|
146,266
|
|
| | | | |
|
|
Weighted average number of common and
| | | | | |
|
common equivalent shares outstanding:
| | | | | |
|
EPS diluted
| |
69,441
| |
66,602
| | |
68,169
| |
61,579
| |
|
FFO diluted
| |
72,025
| |
68,959
| | |
70,779
| |
63,967
| |
| | | | |
|
|
Net income attributable to common shareholders - diluted
|
$
|
0.02
|
$
|
0.06
| |
$
|
0.09
|
$
|
0.46
| |
|
FFO per common share - diluted
|
$
|
0.65
|
$
|
0.70
| |
$
|
1.98
|
$
|
2.29
| |
| | | | |
|
| | | | |
|
| | | | |
|
| | | | |
|
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:
|
| | | | |
|
| | | | |
|
| 4Q10 Range | | 2010 Range |
| Low | High | | Low | High |
| | | | |
|
|
Expected net income attributable to common shareholders per share -
diluted
|
$
|
0.05
|
$
|
0.09
| |
$
|
0.14
|
$
|
0.18
| |
|
Expected real estate depreciation
|
$
|
0.58
|
$
|
0.58
| |
$
|
2.35
|
$
|
2.35
| |
|
Expected adjustments for unconsolidated joint ventures
|
$
|
0.03
|
$
|
0.03
| |
$
|
0.13
|
$
|
0.13
| |
|
Expected income allocated to noncontrolling interests
|
$
|
0.00
|
$
|
0.00
| |
$
|
0.02
|
$
|
0.02
|
|
|
Expected FFO per share - diluted
|
$
|
0.66
|
$
|
0.70
| |
$
|
2.64
|
$
|
2.68
| |
| | | | |
|
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 | | Nine Months Ended |
| September 30, | | September 30, |
| 2010 | 2009 | | 2010 | 2009 |
|
Net income attributable to common shareholders
|
$
|
1,650
| |
$
|
3,937
| | |
$
|
6,069
| |
$
|
28,486
| |
|
Less: Fee and asset management income
| |
(2,145
|
)
| |
(1,818
|
)
| | |
(6,028
|
)
| |
(6,093
|
)
|
|
Less: Interest and other income
| |
(451
|
)
| |
(582
|
)
| | |
(3,988
|
)
| |
(2,414
|
)
|
|
Less: (Income) loss on deferred compensation plans
| |
(6,918
|
)
| |
(8,194
|
)
| | |
(6,818
|
)
| |
(11,702
|
)
|
|
Plus: Property management expense
| |
4,789
| | |
4,377
| | | |
14,994
| | |
13,848
| |
|
Plus: Fee and asset management expense
| |
1,155
| | |
1,074
| | | |
3,611
| | |
3,512
| |
|
Plus: General and administrative expense
| |
7,568
| | |
7,532
| | | |
22,339
| | |
23,010
| |
|
Plus: Interest expense
| |
31,781
| | |
31,117
| | | |
95,078
| | |
97,364
| |
|
Plus: Depreciation and amortization
| |
43,685
| | |
42,697
| | | |
129,963
| | |
130,197
| |
|
Plus: Amortization of deferred financing costs
| |
1,185
| | |
682
| | | |
2,624
| | |
2,356
| |
|
Plus: Expense (benefit) on deferred compensation plans
| |
6,918
| | |
8,194
| | | |
6,818
| | |
11,702
| |
|
Less: (Gain) on sale of properties, including land
| |
-
| | |
-
| | | |
(236
|
)
| |
-
| |
|
Plus: Loss on early retirement of debt
| |
-
| | |
-
| | | |
-
| | |
2,550
| |
|
Less: Equity in (income) loss of joint ventures
| |
244
| | |
38
| | | |
785
| | |
(592
|
)
|
|
Plus: Income allocated to perpetual preferred units
| |
1,750
| | |
1,750
| | | |
5,250
| | |
5,250
| |
|
Plus: Income (loss) allocated to noncontrolling interests
| |
432
| | |
505
| | | |
542
| | |
1,448
| |
|
Plus: Income tax expense - current
| |
712
| | |
126
| | | |
1,286
| | |
772
| |
|
Less: (Income) from discontinued operations
| |
(326
|
)
| |
(279
|
)
| | |
(715
|
)
| |
(2,265
|
)
|
|
Less: (Gain) loss on sale of discontinued operations
|
|
-
|
|
|
-
|
| |
|
-
|
|
|
(16,887
|
)
|
|
Net Operating Income (NOI)
|
$
|
92,029
| |
$
|
91,156
| | |
$
|
271,574
| |
$
|
280,542
| |
| | | | |
|
|
"Same Property" Communities
|
$
|
84,862
| |
$
|
85,357
| | |
$
|
251,678
| |
$
|
263,926
| |
|
Non-"Same Property" Communities
| |
7,429
| | |
5,428
| | | |
20,296
| | |
15,434
| |
|
Other
|
|
(262
|
)
|
|
371
|
| |
|
(400
|
)
|
|
1,182
|
|
|
Net Operating Income (NOI)
|
$
|
92,029
| |
$
|
91,156
| | |
$
|
271,574
| |
$
|
280,542
| |
| | | | |
|
| | | | |
|
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) 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 | | Nine Months Ended |
| September 30, | | September 30, |
| 2010 | 2009 | | 2010 | 2009 |
|
Net income attributable to common shareholders
|
$
|
1,650
| |
$
|
3,937
| | |
$
|
6,069
| |
$
|
28,486
| |
|
Plus: Interest expense
| |
31,781
| | |
31,117
| | | |
95,078
| | |
97,364
| |
|
Plus: Amortization of deferred financing costs
| |
1,185
| | |
682
| | | |
2,624
| | |
2,356
| |
|
Plus: Depreciation and amortization
| |
43,685
| | |
42,697
| | | |
129,963
| | |
130,197
| |
|
Plus: Income allocated to perpetual preferred units
| |
1,750
| | |
1,750
| | | |
5,250
| | |
5,250
| |
|
Plus: Income (loss) allocated to noncontrolling interests
| |
432
| | |
505
| | | |
542
| | |
1,448
| |
|
Plus: Income tax expense - current
| |
712
| | |
126
| | | |
1,286
| | |
772
| |
|
Plus: Real estate depreciation and amortization from discontinued
operations
| |
-
| | |
198
| | | |
325
| | |
566
| |
|
Less: (Gain) on sale of properties, including land
| |
-
| | |
-
| | | |
(236
|
)
| |
-
| |
|
Plus: Loss on early retirement of debt
| |
-
| | |
-
| | | |
-
| | |
2,550
| |
|
Less: Equity in (income) loss of joint ventures
| |
244
| | |
38
| | | |
785
| | |
(592
|
)
|
|
Less: (Gain) loss on sale of discontinued operations
|
|
-
|
|
|
-
|
| |
|
-
|
|
|
(16,887
|
)
|
|
EBITDA
|
$
|
81,439
| |
$
|
81,050
| | |
$
|
241,686
| |
$
|
251,510
| |
Source: Camden Property Trust
Contact:
Camden Property Trust
Kim Callahan, 713-354-2549