HOUSTON--(BUSINESS WIRE)--
Camden Property Trust (NYSE: CPT) today announced operating results for
the three and nine months ended September 30, 2011.
Funds From Operations (“FFO”)
FFO for the third quarter of 2011 totaled $0.77 per diluted share or
$58.8 million, as compared to $0.65 per diluted share or $46.7 million
for the same period in 2010, an increase of 18% per diluted share.
FFO for the nine months ended September 30, 2011 totaled $1.89 per
diluted share or $143.3 million, as compared to $1.98 per diluted share
or $140.4 million for the same period in 2010. FFO for the nine months
ended September 30, 2011 included: a $0.40 per diluted share impact
related to a $29.8 million loss on discontinuation of a hedging
relationship of an interest rate swap and $0.5 million write-off of
unamortized loan costs related to the payoff of a term loan; a $4.7
million or $0.06 per diluted share gain on sale of undeveloped land; a
net $3.3 million or $0.04 per diluted share impact related to the sale
of an available-for-sale investment; and a $2.1 million or $0.03 per
diluted share impact for General & Administrative (“G&A”) costs related
to a one-time bonus awarded to all non-executive employees. FFO for the
nine months ended September 30, 2010 included a $2.7 million or $0.04
per diluted share impact for income relating to the expiration of an
indemnification provision related to one of the Company’s operating
joint ventures.
Net Income Attributable to Common Shareholders
(“EPS”)
The Company reported EPS of $11.8 million or $0.16 per diluted share for
the third quarter of 2011, as compared to $1.7 million or $0.02 per
diluted share for the same period in 2010.
For the nine months ended September 30, 2011, Camden reported EPS of
$2.5 million or $0.03 per diluted share, as compared to $6.1 million or
$0.09 per diluted share for the same period in 2010. EPS for the nine
months ended September 30, 2011 included: a $0.41 per diluted share
impact related to a $29.8 million loss on discontinuation of a hedging
relationship of an interest rate swap and $0.5 million write-off of
unamortized loan costs related to the payoff of a term loan; a $4.7
million or $0.06 per diluted share gain on sale of undeveloped land; a
net $3.3 million or $0.05 per diluted share impact related to gain on
sale of an available-for-sale investment; a $2.1 million or $0.03 per
diluted share impact for G&A costs related to a one-time bonus awarded
to all non-executive employees; and a $1.1 million or $0.02 per diluted
share impact from gain on sale of three joint venture interests. EPS for
the nine months ended September 30, 2010 included a $2.7 million or
$0.04 per diluted share impact for income relating to the expiration of
an indemnification provision related to one of the Company’s operating
joint ventures.
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 47,309 apartment homes included in consolidated same property
results, third quarter 2011 same property NOI increased 7.4% compared to
the third quarter of 2010, with revenues increasing 6.3% and expenses
increasing 4.6%. On a sequential basis, third quarter 2011 same property
NOI increased 0.9% compared to the second quarter of 2011, with revenues
increasing 2.1% and expenses increasing 3.9% compared to the prior
quarter. On a year-to-date basis, 2011 same property NOI increased 6.8%,
with revenues increasing 5.1% and expenses increasing 2.6% compared to
the same period in 2010. Same property physical occupancy levels for the
portfolio averaged 95.0% during the third quarter of 2011, compared to
94.3% in the third quarter of 2010 and 94.8% in the second quarter of
2011.
The Company defines same property communities as communities owned and
stabilized as of January 1, 2010, 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
During the quarter, the Company acquired 30 acres of land in Atlanta, GA
for approximately $40 million, which it intends to utilize for future
development.
Camden also completed the acquisition of a 240-home apartment community
in San Antonio, TX during the quarter for approximately $15 million
through one of its discretionary investment funds (“Funds”), in which it
owns a 20% interest. Subsequent to quarter-end, the Company acquired
five additional communities with 1,488 apartment homes located in
Houston, TX for approximately $136 million through its Funds.
Development Activity
Lease-up was completed during the third quarter at Camden Ivy Hall, a
$17 million joint venture community which is currently 94% occupied.
Lease-ups began during the quarter at two wholly-owned communities:
Camden LaVina in Orlando, FL, which is currently 35% leased; and Camden
Summerfield II in Landover, MD, which is currently 19% leased.
Construction continued during the quarter on six wholly-owned
development communities: Camden LaVina in Orlando, FL, a $60 million
project with 420 apartment homes; Camden Summerfield II in Landover, MD,
a $30 million project with 187 apartment homes; Camden Royal Oaks II in
Houston, TX, a $14 million project with 104 apartment homes; Camden
Montague in Tampa, FL, a $23 million project with 192 apartment homes;
Camden Westchase Park in Tampa, FL, a $52 million project with 348
apartment homes; and Camden Town Square in Orlando, FL, a $66 million
project with 438 apartment homes. Construction also continued during the
quarter on two joint venture communities: Camden South Capitol in
Washington, DC, an $88 million project with 276 apartment homes, and
Camden Amber Oaks II in Austin, TX, a $25 million project with 244
apartment homes.
Subsequent to quarter-end, the Company began construction on two
additional wholly-owned development communities: Camden City Centre II
in Houston, TX, a $36 million project with 268 apartment homes, and
Camden NOMA in Washington, DC, a $110 million project with 320 apartment
homes.
Equity Issuance
During the third quarter, Camden issued 506,200 common shares through
its at-the-market (“ATM”) share offering programs at an average price of
$65.76 per share, for total net consideration of approximately $32.7
million. Year-to-date Camden has issued 1,127,898 common shares through
its ATM programs at an average price of $63.13 per share, for total net
consideration of approximately $69.9 million.
Earnings Guidance
Camden updated its earnings guidance for 2011 based on its current and
expected views of the apartment market and general economic conditions.
Full-year 2011 FFO is expected to be $2.70 to $2.74 per diluted share,
and full-year 2011 EPS is expected to be $0.24 to $0.28 per diluted
share. Fourth quarter 2011 earnings guidance is $0.81 to $0.85 per
diluted share for FFO and $0.20 to $0.24 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 2011 earnings guidance is based on projections of same
property revenue growth between 5.2% and 5.6%, expense growth between
2.75% and 3.25%, and NOI growth between 6.75% and 7.25%. Additional
information on the Company’s 2011 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 2012 in conjunction with
its fourth quarter 2011 earnings release on February 2, 2012.
Conference Call
The Company will hold a conference call on Friday, November 4, 2011 at
11:00 a.m. Central Time to review its third quarter 2011 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: 9252989, 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 202 properties containing 68,979 apartment homes across
the United States. Upon completion of 10 properties under development,
the Company's portfolio will increase to 71,776 apartment homes in 212
properties. Camden was recently named by FORTUNE® Magazine for the
fourth consecutive year as one of the “100 Best Companies to Work For”
in America, placing 7th 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 www.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 | | | | | 2011 |
| 2010 | | 2011 |
| 2010 |
| Property revenues | | | | | | | | | |
| |
|
Rental revenues
| | | | | $144,211 | | $131,911 | | $424,210 | | $390,376 |
|
Other property revenues
| | | |
24,723
|
|
22,363
| |
70,977
|
|
64,641
|
|
Total property revenues
| | | |
168,934
|
|
154,274
| |
495,187
|
|
455,017
|
| | | | | | | | | | | | | |
|
| Property expenses | | | | | | | | | | | |
|
Property operating and maintenance
| |
50,715
| |
46,999
| |
144,666
| |
134,655
|
|
Real estate taxes
| | | | | |
17,329
|
|
16,652
| |
52,932
|
|
52,767
|
|
Total property expenses
| | | |
68,044
|
|
63,651
| |
197,598
|
|
187,422
|
| | | | | | | | | | | | | |
|
| Non-property income (loss) | | | | | | | | | | |
|
Fee and asset management
| | | |
2,646
| |
2,145
| |
6,955
| |
6,028
|
|
Interest and other income (loss)
| | | |
(108)
| |
451
| |
4,749
| |
3,988
|
|
Income (loss) on deferred compensation plans
| |
(6,096)
|
|
6,918
| |
1,233
|
|
6,818
|
|
Total non-property income (loss)
| | |
(3,558)
|
|
9,514
| |
12,937
|
|
16,834
|
| | | | | | | | | | | | | |
|
| Other expenses | | | | | | | | | | | | |
|
Property management
| | | | |
5,050
| |
4,789
| |
15,478
| |
14,994
|
|
Fee and asset management
| | | |
1,330
| |
1,155
| |
4,220
| |
3,611
|
|
General and administrative
| | | |
8,572
| |
7,568
| |
26,392
| |
22,339
|
|
Interest
| | | | | | |
27,354
| |
31,781
| |
85,472
| |
95,078
|
|
Depreciation and amortization
| | | |
44,558
| |
43,034
| |
137,111
| |
128,012
|
|
Amortization of deferred financing costs
| |
1,344
| |
1,185
| |
4,761
| |
2,624
|
|
Expense (benefit) on deferred compensation plans
| |
(6,096)
|
|
6,918
| |
1,233
|
|
6,818
|
|
Total other expenses
| | | | |
82,112
|
|
96,430
| |
274,667
|
|
273,476
|
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | | |
|
|
Loss on discontinuation of hedging relationship
| |
-
| |
-
| |
(29,791)
| |
-
|
|
Gain on sale of properties, including land
| |
-
| |
-
| |
4,748
| |
236
|
|
Gain on sale of unconsolidated joint venture interests
| |
-
| |
-
| |
1,136
| |
-
|
|
Equity in loss of joint ventures
| | | |
(556)
|
|
(244)
| |
(166)
|
|
(785)
|
| Income from continuing operations before income taxes | | 14,664 | | 3,463 | | 11,786 | | 10,404 |
|
Income tax expense - current
| | | |
(313)
|
|
(712)
| |
(1,889)
|
|
(1,286)
|
| Income from continuing operations | | | 14,351 | | 2,751 | | 9,897 | | 9,118 |
|
Income from discontinued operations
| |
-
|
|
1,081
| |
-
|
|
2,743
|
| Net income | | | | | | | 14,351 | | 3,832 | | 9,897 | | 11,861 |
|
Less income allocated to noncontrolling interests from continuing
operations
| |
(761)
| |
(432)
| |
(2,118)
| |
(542)
|
|
Less income allocated to perpetual preferred units
| |
(1,750)
|
|
(1,750)
| |
(5,250)
|
|
(5,250)
|
| Net income attributable to common shareholders | | $11,840 |
| $1,650 | | $2,529 |
| $6,069 |
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | | |
|
CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME | | | | |
| Net income | | | | | | $14,351 | | $3,832 | | $9,897 | | $11,861 |
| Other comprehensive income | | | | | | | | | | |
|
Unrealized loss on cash flow hedging activities
| |
-
| |
(5,323)
| |
(2,692)
| |
(19,549)
|
|
Reclassification of net losses on cash flow hedging activities
| |
108
| |
5,825
| |
39,660
| |
17,488
|
|
Unrealized gain on available-for-sale securities, net of tax
| |
-
| |
1,914
| |
-
| |
1,914
|
|
Reclassification of gain on available-for-sale investment to
earnings, net of tax
| |
-
|
|
-
| |
(3,309)
|
|
-
|
| Comprehensive income | | | | | 14,459 | | 6,248 | | 43,556 | | 11,714 |
|
Less income allocated to noncontrolling interests from continuing
operations
| |
(761)
| |
(432)
| |
(2,118)
| |
(542)
|
|
Less income allocated to perpetual preferred units
| |
(1,750)
|
|
(1,750)
| |
(5,250)
|
|
(5,250)
|
| Comprehensive income attributable to common shareholders | | $11,948 |
| $4,066 | | $36,188 |
| $5,922 |
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | | |
|
PER SHARE DATA | | | | | | | | | | | |
|
Net income attributable to common shareholders - basic
| | $0.16 | | $0.02 | | $0.03 | | $0.09 |
|
Net income attributable to common shareholders - diluted
| |
0.16
| |
0.02
| |
0.03
| |
0.09
|
|
Income from continuing operations attributable to common
shareholders - basic
| |
0.16
| |
0.01
| |
0.03
| |
0.05
|
|
Income from continuing operations attributable to common
shareholders - diluted
| |
0.16
| |
0.01
| |
0.03
| |
0.05
|
| | | | | | | | | | | | | |
|
| Weighted average number of common and | | | | | | | | |
| common equivalent shares outstanding: | | | | | | | | |
|
Basic
| | | | | | |
73,242
| |
69,100
| |
72,502
| |
67,898
|
|
Diluted
| | | | | | |
74,274
| |
69,441
| |
73,217
| |
68,169
|
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | | |
|
|
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 | | | | | 2011 |
| 2010 | | 2011 |
| 2010 |
| | | | | | | | | | | | | |
|
| Net income attributable to common shareholders (a) | | $11,840 | | $1,650 | | $2,529 | | $6,069 |
|
Real estate depreciation from continuing operations
| |
43,286
| |
41,806
| |
133,342
| |
124,399
|
|
Real estate depreciation from discontinued operations
| |
-
| |
651
| |
-
| |
2,276
|
|
Adjustments for unconsolidated joint ventures
| |
3,223
| |
2,292
| |
7,042
| |
6,753
|
|
(Gain) on sale of unconsolidated joint venture interests
| |
-
| |
-
| |
(1,136)
| |
-
|
|
Income allocated to noncontrolling interests
| |
458
|
|
281
| |
1,494
|
|
864
|
| Funds from operations - diluted | | | | $58,807 |
| $46,680 | | $143,271 |
| $140,361 |
| | | | | | | | | | | | | |
|
PER SHARE DATA | | | | | | | | | | | | |
|
Funds from operations - diluted
| | | | $0.77 | | $0.65 | | $1.89 | | $1.98 |
|
Cash distributions
| | | | | |
0.49
| |
0.45
| |
1.47
| |
1.35
|
| | | | | | | | | | | | | |
|
| Weighted average number of common and | | | | | | | | | | |
| common equivalent shares outstanding: | | | | | | | | | | |
|
FFO - diluted
| | | | | |
76,494
| |
72,025
| |
75,685
| |
70,779
|
| | | | | | | | | | | | | |
|
PROPERTY DATA | | | | | | | | | | | | |
|
Total operating properties (end of period) (b) | |
197
| |
186
| |
197
| |
186
|
|
Total operating apartment homes in operating properties (end of
period) (b) | |
67,491
| |
63,964
| |
67,491
| |
63,964
|
|
Total operating apartment homes (weighted average)
| |
50,921
| |
50,950
| |
50,895
| |
50,736
|
|
Total operating apartment homes - excluding discontinued operations
(weighted average)
| |
50,921
| |
49,884
| |
50,895
| |
49,670
|
| | | | | | | | | | | | | |
|
| (a) Includes a $29.8 million charge related to
a loss on the discontinuation of a hedging relationship | | | | | | | | |
for the nine months ended September 30,2011. | | | | | | | | |
| (b) 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, |
| | | | 2011 |
| 2011 |
| 2011 |
| 2010 |
| 2010 |
| ASSETS | | | | | | | | | | | | |
|
Real estate assets, at cost
| | | | | | | | | | | |
|
Land
| | | | $766,302 | | $760,397 | | $760,397 | | $760,397 | | $763,559 |
|
Buildings and improvements
| | |
4,758,397
|
|
4,711,552
|
|
4,690,741
|
|
4,680,361
|
|
4,613,036
|
| | | |
5,524,699
| |
5,471,949
| |
5,451,138
| |
5,440,758
| |
5,376,595
|
|
Accumulated depreciation
| | |
(1,421,867)
|
|
(1,378,630)
|
|
(1,335,831)
|
|
(1,292,924)
|
|
(1,263,173)
|
|
Net operating real estate assets
| | |
4,102,832
| |
4,093,319
| |
4,115,307
| |
4,147,834
| |
4,113,422
|
|
Properties under development, including land
| | |
274,201
| |
237,549
| |
220,641
| |
206,919
| |
198,377
|
|
Investments in joint ventures
| | |
37,033
| |
39,398
| |
21,196
| |
27,632
| |
33,226
|
|
Properties held for sale, including land
| | |
-
|
|
-
|
|
-
|
|
-
|
|
9,737
|
|
Total real estate assets
| | |
4,414,066
| |
4,370,266
| |
4,357,144
| |
4,382,385
| |
4,354,762
|
|
Accounts receivable - affiliates
| | |
31,395
| |
30,401
| |
29,973
| |
31,895
| |
32,269
|
|
Notes receivable - affiliates
| | |
-
| |
-
| |
-
| |
3,194
| |
17,509
|
|
Other assets, net (a) | | |
87,657
| |
90,346
| |
92,051
| |
106,175
| |
105,950
|
|
Cash and cash equivalents
| | |
56,099
| |
63,148
| |
98,771
| |
170,575
| |
91,071
|
|
Restricted cash
| | |
5,357
|
|
4,898
|
|
5,354
|
|
5,513
|
|
5,174
|
|
Total assets
| | | $4,594,574 |
| $4,559,059 |
| $4,583,293 |
| $4,699,737 |
| $4,606,735 |
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
| LIABILITIES AND EQUITY | | | | | | | | | | | |
|
Liabilities
| | | | | | | | | | | | |
|
Notes payable
| | | | | | | | | | | |
|
Unsecured
| | | $1,380,560 | | $1,380,368 | | $1,419,681 | | $1,507,757 | | $1,507,858 |
|
Secured
| | |
1,052,544
| |
1,053,699
| |
1,054,839
| |
1,055,997
| |
1,034,354
|
|
Accounts payable and accrued expenses
| | |
97,613
| |
78,460
| |
81,972
| |
81,556
| |
82,598
|
|
Accrued real estate taxes
| | |
37,721
| |
27,424
| |
16,585
| |
22,338
| |
40,340
|
|
Distributions payable
| | |
39,319
| |
38,966
| |
38,662
| |
35,295
| |
34,548
|
|
Other liabilities (b) | | |
111,043
|
|
123,829
|
|
134,608
|
|
141,496
|
|
144,146
|
|
Total liabilities
| | |
2,718,800
| |
2,702,746
| |
2,746,347
| |
2,844,439
| |
2,843,844
|
| | | | | | | | | | | |
|
|
Commitments and contingencies
| | | | | | | | | | | |
| | | | | | | | | | | |
|
|
Perpetual preferred units
| | |
97,925
| |
97,925
| |
97,925
| |
97,925
| |
97,925
|
| | | | | | | | | | | |
|
|
Equity
| | | | | | | | | | | | |
|
Common shares of beneficial interest
| | |
839
| |
834
| |
827
| |
824
| |
804
|
|
Additional paid-in capital
| | |
2,861,139
| |
2,823,690
| |
2,783,621
| |
2,775,625
| |
2,673,606
|
|
Distributions in excess of net income attributable to common
shareholders
| |
(700,897)
| |
(676,367)
| |
(623,740)
| |
(595,317)
| |
(580,046)
|
|
Treasury shares, at cost
| | |
(452,244)
| |
(459,134)
| |
(460,467)
| |
(461,255)
| |
(461,255)
|
|
Accumulated other comprehensive income (loss) (c) | |
201
|
|
93
|
|
(31,504)
|
|
(33,458)
|
|
(41,302)
|
|
Total common equity
| | |
1,709,038
| |
1,689,116
| |
1,668,737
| |
1,686,419
| |
1,591,807
|
|
Noncontrolling interest
| | |
68,811
|
|
69,272
|
|
70,284
|
|
70,954
|
|
73,159
|
|
Total equity
| | |
1,777,849
|
|
1,758,388
|
|
1,739,021
|
|
1,757,373
|
|
1,664,966
|
|
Total liabilities and equity
| | | $4,594,574 |
| $4,559,059 |
| $4,583,293 |
| $4,699,737 |
| $4,606,735 |
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
| (a) Includes: | | | | | | | | | | | | |
| net deferred charges of: | | | $16,868 | | $14,484 | | $12,677 | | $13,336 | | $14,892 |
| | | | | | | | | | | |
|
| (b) Includes: | | | | | | | | | | | | |
| deferred revenues of: | | | $2,213 | | $2,181 | | $2,254 | | $2,332 | | $2,347 |
| distributions in excess of investments in joint ventures of: | | $31,799 | | $31,040 | | $33,442 | | $32,288 | | $34,045 |
| fair value adjustment of derivative instruments: | | $22,192 | | $27,977 | | $31,655 | | $36,898 | | $43,267 |
| | | | | | | | | | | |
|
| (c) Represents the fair value adjustment of derivative
instruments, unrealized gain on post retirement obligations and
unrealized gain on available-for-sale securities, net of tax, if any. |
|
|
|
|
| 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, |
| | | | 2011 |
| 2010 | | | | 2011 |
| 2010 |
|
Net income attributable to common shareholders (a)
| | $11,840 | | $1,650 | | | | $2,529 | | $6,069 |
|
Real estate depreciation from continuing operations
| |
43,286
| |
41,806
| | | |
133,342
| |
124,399
|
|
Real estate depreciation from discontinued operations
| |
-
| |
651
| | | |
-
| |
2,276
|
|
Adjustments for unconsolidated joint ventures
| |
3,223
| |
2,292
| | | |
7,042
| |
6,753
|
|
(Gain) on sale of unconsolidated joint venture interests
| |
-
| |
-
| | | |
(1,136)
| |
-
|
|
Income allocated to noncontrolling interests
| |
458
|
|
281
| | | |
1,494
|
|
864
|
|
Funds from operations - diluted
| | $58,807 |
| $46,680 | | | | $143,271 |
| $140,361 |
| | | | | | | | | | | |
|
|
Weighted average number of common and
| | | | | | | | | | |
common equivalent shares outstanding:
| | | | | | | | | | |
|
EPS diluted
| |
74,274
| |
69,441
| | | |
73,217
| |
68,169
|
|
FFO diluted
| |
76,494
| |
72,025
| | | |
75,685
| |
70,779
|
| | | | | | | | | | | |
|
|
Net income attributable to common shareholders - diluted
| | $0.16 | | $0.02 | | | | $0.03 | | $0.09 |
|
FFO per common share - diluted
| | $0.77 | | $0.65 | | | | $1.89 | | $1.98 |
| | | | | | | | | | | |
|
| (a) Includes a $29.8 million charge related to
a loss on the discontinuation of a hedging relationship | | | | | | | | | | |
for the nine months ended September 30,2011. | | | | | | | | | | |
| | | | | | | | | | | |
|
| 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:
|
| | | | | | | | | | | |
|
| | | | 4Q11 Range | | | | 2011 Range |
| | | | Low |
| High | | | | Low |
| High |
| | | | | | | | | | | |
|
|
Expected net income attributable to common shareholders per share -
diluted
| | $0.20 | | $0.24 | | | | $0.24 | | $0.28 |
|
Expected difference between fully diluted EPS and FFO shares
| |
(0.02)
| |
(0.02)
| | | |
(0.07)
| |
(0.07)
|
|
Expected real estate depreciation
| |
0.58
| |
0.58
| | | |
2.38
| |
2.38
|
|
Expected adjustments for unconsolidated joint ventures
| |
0.04
| |
0.04
| | | |
0.14
| |
0.14
|
|
Recognized (gain) on sale of unconsolidated joint venture interests
| |
0.00
| |
0.00
| | | |
(0.02)
| |
(0.02)
|
|
Expected income allocated to noncontrolling interests
| |
0.01
|
|
0.01
| | | |
0.03
|
|
0.03
|
|
Expected FFO per share - diluted
| | $0.81 | | $0.85 | | | | $2.70 | | $2.74 |
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
|
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, |
| | | | 2011 |
| 2010 | | | | 2011 |
| 2010 |
|
Net income attributable to common shareholders
| | $11,840 | | $1,650 | | | | $2,529 | | $6,069 |
|
Less: Fee and asset management income
| |
(2,646)
| |
(2,145)
| | | |
(6,955)
| |
(6,028)
|
|
Less: Interest and other (income) loss
| |
108
| |
(451)
| | | |
(4,749)
| |
(3,988)
|
|
Less: (Income) loss on deferred compensation plans
| |
6,096
| |
(6,918)
| | | |
(1,233)
| |
(6,818)
|
|
Plus: Property management expense
| |
5,050
| |
4,789
| | | |
15,478
| |
14,994
|
|
Plus: Fee and asset management expense
| |
1,330
| |
1,155
| | | |
4,220
| |
3,611
|
|
Plus: General and administrative expense
| |
8,572
| |
7,568
| | | |
26,392
| |
22,339
|
|
Plus: Interest expense
| |
27,354
| |
31,781
| | | |
85,472
| |
95,078
|
|
Plus: Depreciation and amortization
| |
44,558
| |
43,034
| | | |
137,111
| |
128,012
|
|
Plus: Amortization of deferred financing costs
| |
1,344
| |
1,185
| | | |
4,761
| |
2,624
|
|
Plus: Expense (benefit) on deferred compensation plans
| |
(6,096)
| |
6,918
| | | |
1,233
| |
6,818
|
|
Less: Gain on sale of properties, including land
| |
-
| |
-
| | | |
(4,748)
| |
(236)
|
|
Less: Gain on sale of unconsolidated joint venture interests
| |
-
| |
-
| | | |
(1,136)
| |
-
|
|
Less: Equity in (income) loss of joint ventures
| |
556
| |
244
| | | |
166
| |
785
|
|
Plus: Loss on discontinuation of hedging relationship
| |
-
| |
-
| | | |
29,791
| |
-
|
|
Plus: Income allocated to perpetual preferred units
| |
1,750
| |
1,750
| | | |
5,250
| |
5,250
|
|
Plus: Income allocated to noncontrolling interests
| |
761
| |
432
| | | |
2,118
| |
542
|
|
Plus: Income tax expense - current
| |
313
| |
712
| | | |
1,889
| |
1,286
|
|
Less: Income from discontinued operations
| |
-
|
|
(1,081)
| | | |
-
|
|
(2,743)
|
|
Net Operating Income (NOI)
| | $100,890 | | $90,623 | | | | $297,589 | | $267,595 |
| | | | | | | | | | | |
|
|
"Same Property" Communities
| | $92,154 | | $85,796 | | | | $271,903 | | $254,586 |
|
Non-"Same Property" Communities
| |
8,298
| |
5,066
| | | |
24,964
| |
13,356
|
|
Development and Lease-Up Communities
| |
83
| |
-
| | | |
83
| |
-
|
|
Other
| | |
355
|
|
(239)
| | | |
639
|
|
(347)
|
|
Net Operating Income (NOI)
| | $100,890 | | $90,623 | | | | $297,589 | | $267,595 |
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
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 sale of unconsolidated joint venture
interests, 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, |
| | | | 2011 |
| 2010 | | | | 2011 |
| 2010 |
|
Net income attributable to common shareholders
| | $11,840 | | $1,650 | | | | $2,529 | | $6,069 |
|
Plus: Interest expense
| |
27,354
| |
31,781
| | | |
85,472
| |
95,078
|
|
Plus: Amortization of deferred financing costs
| |
1,344
| |
1,185
| | | |
4,761
| |
2,624
|
|
Plus: Depreciation and amortization
| |
44,558
| |
43,034
| | | |
137,111
| |
128,012
|
|
Plus: Income allocated to perpetual preferred units
| |
1,750
| |
1,750
| | | |
5,250
| |
5,250
|
|
Plus: Income allocated to noncontrolling interests
| |
761
| |
432
| | | |
2,118
| |
542
|
|
Plus: Income tax expense - current
| |
313
| |
712
| | | |
1,889
| |
1,286
|
|
Plus: Real estate depreciation from discontinued operations
| |
-
| |
651
| | | |
-
| |
2,276
|
|
Less: Gain on sale of properties, including land
| |
-
| |
-
| | | |
(4,748)
| |
(236)
|
|
Less: Gain on sale of unconsolidated joint venture interests
| |
-
| |
-
| | | |
(1,136)
| |
-
|
|
Less: Equity in (income) loss of joint ventures
| |
556
| |
244
| | | |
166
| |
785
|
|
Plus: Loss on discontinuation of hedging relationship
| |
-
|
|
-
| | | |
29,791
|
|
-
|
|
EBITDA
| | | $88,476 | | $81,439 | | | | $263,203 | | $241,686 |
Camden Property Trust
Kim Callahan, 713-354-2549
Source: Camden Property Trust