HOUSTON--(BUSINESS WIRE)--
Camden Property Trust (NYSE: CPT) today announced operating results for
the three and nine months ended September 30, 2012.
Funds From Operations (“FFO”)
FFO for the third quarter of 2012 totaled $0.93 per diluted share or
$82.1 million, as compared to $0.77 per diluted share or $58.8 million
for the same period in 2011.
FFO for the nine months ended September 30, 2012 totaled $2.65 per
diluted share or $227.4 million, as compared to $1.89 per diluted share
or $143.3 million for the same period in 2011. FFO for the nine months
ended September 30, 2012 included a $2.1 million or $0.02 per diluted
share charge related to the redemption of perpetual preferred operating
partnership units. 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; and a net $3.3 million or $0.04 per diluted
share impact related to gain on sale of an available-for-sale investment.
“We are pleased to report another strong quarter, with FFO per share
growing 21% and same property net operating income rising 10.7%,” said
Richard Campo, Camden’s Chairman & Chief Executive Officer. “Apartment
fundamentals continue to be strong across our markets, allowing us to
increase our 2012 earnings guidance for the third time this year.”
Net Income Attributable to Common Shareholders
(“EPS”)
The Company reported EPS of $30.7 million or $0.35 per diluted share for
the third quarter of 2012, as compared to $11.8 million or $0.16 per
diluted share for the same period in 2011. EPS for the three months
ended September 30, 2012 included a $2.9 million or $0.03 per diluted
share impact related to the gain on sale of an unconsolidated joint
venture property.
For the nine months ended September 30, 2012, the Company reported EPS
of $141.2 million or $1.66 per diluted share, as compared to $2.5
million or $0.03 per diluted share for the same period in 2011. EPS for
the nine months ended September 30, 2012 included: a $40.2 million or
$0.47 per diluted share impact related to the gain on acquisition of the
controlling interest in twelve joint ventures; a $32.5 million or $0.38
per diluted share impact related to the gain on sale of discontinued
operations; a $2.9 million or $0.03 per diluted share impact related to
the gain on sale of an unconsolidated joint venture property; and, a
$2.1 million or $0.02 per diluted share charge related to the redemption
of perpetual preferred operating partnership units. EPS for the nine
months ended September 30, 2011 included: a $0.42 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 $0.07 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; and a $1.1 million or $0.02
per diluted share impact from gain on sale of three joint venture
interests.
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 47,251 apartment homes included in consolidated same property
results, third quarter 2012 same property NOI increased 10.7% compared
to the third quarter of 2011, with revenues increasing 6.6% and expenses
increasing 0.4%. On a sequential basis, third quarter 2012 same property
NOI increased 2.8% compared to the second quarter of 2012, with revenues
increasing 2.6% and expenses increasing 2.4% compared to the prior
quarter. On a year-to-date basis, 2012 same property NOI increased 9.6%,
with revenues increasing 6.5% and expenses increasing 1.6% compared to
the same period in 2011. Same property physical occupancy levels for the
portfolio averaged 95.6% during the third quarter of 2012, compared to
95.1% in the third quarter of 2011 and 95.4% in the second quarter of
2012.
The Company defines same property communities as communities owned and
stabilized as of January 1, 2011, 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
Camden acquired three stabilized communities during the third quarter
for a total of $135.0 million: Camden Creekstone, a 223-home apartment
community in Atlanta, GA; Camden Landmark, a 469-home apartment
community in Ontario, CA; and Camden Henderson, a 106-home apartment
community in Dallas, TX. The Company also purchased the remaining 75%
non-controlling ownership interest in a fully-consolidated joint venture
during the quarter. Camden Travis Street, a 253-home apartment community
in Houston, TX, is now wholly-owned by the Company.
During the quarter the Company acquired 12.0 acres of land located in
Austin, TX for future development of a multifamily community. Subsequent
to quarter-end Camden acquired 2.4 acres of land in Plantation, FL for
future development of a multifamily community.
Disposition Activity
Camden disposed of one joint venture community during the quarter, which
was owned by one of the Company’s funds. Camden South Congress, a
253-home apartment community in Austin, TX, was sold for approximately
$54.4 million. Camden’s proportionate share of the gain was
approximately $2.9 million.
Subsequent to quarter-end, the Company sold two wholly-owned communities
for a total of $26.6 million: Camden Laurel Ridge, a 183-home apartment
community in Austin, TX; and Camden Steeplechase, a 290-home apartment
community in Houston, TX. The Company also sold Camden Passage, a
596-home joint venture apartment community in Kansas City, MO for
approximately $40.7 million subsequent to quarter-end.
Development Activity
Lease-ups were completed during the quarter at three development
communities: Camden Montague, a 192-home project in Tampa, FL which is
currently 96% occupied; Camden LaVina, a 420-home project in Orlando,
FL, which is currently 96% occupied; and Camden Summerfield II, a
187-home project in Landover, MD, which is currently 95% occupied.
Construction was completed during the quarter at Camden Westchase Park,
a 348-home project in Tampa, FL which is currently 95% leased. Lease-ups
continued during the quarter at Camden Royal Oaks II, a 104-home project
in Houston, TX, which is currently 61% leased; and Camden Town Square, a
438-home project in Orlando, FL which is currently 60% leased.
Construction began during the quarter at Camden Flatirons in Denver, CO,
a $78 million project with 424 apartment homes, and continued at three
additional wholly-owned development communities: Camden City Centre II
in Houston, TX, a $36 million project with 268 apartment homes; Camden
NOMA in Washington, DC, a $110 million project with 320 apartment homes;
and Camden Lamar Heights in Austin, TX, a $47 million project with 314
apartment homes.
Construction was also completed during the quarter on one joint venture
community, Camden Amber Oaks II in Austin, TX, a 244-home project which
is currently 86% leased. Construction continued on Camden South Capitol
in Washington, DC, a 276-home joint venture project expected to have
initial occupancy in the third quarter of 2013.
Equity Issuance
During the third quarter, Camden issued 1,302,454 common shares through
its at-the-market (“ATM”) share offering programs at an average price of
$69.34 per share, for total net consideration of approximately $88.9
million. Year-to-date through October 2012, Camden has issued 4,579,308
common shares through its ATM programs at an average price of $66.93 per
share, for total net consideration of approximately $301.8 million.
Earnings Guidance
Camden updated its earnings guidance for 2012 based on its current and
expected views of the apartment market and general economic conditions.
Full-year 2012 FFO is expected to be $3.59 to $3.63 per diluted share,
and full-year 2012 EPS is expected to be $2.06 to $2.10 per diluted
share. Fourth quarter 2012 earnings guidance is $0.94 to $0.98 per
diluted share for FFO and $0.42 to $0.46 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 2012 earnings guidance is based on projections of same
property revenue growth between 6.20% and 6.70%, expense growth between
2.00% and 2.50%, and NOI growth between 8.75% and 9.25%. Additional
information on the Company’s 2012 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 Friday, November 2, 2012 at
11:00 a.m. Central Time to review its third quarter 2012 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: 3311044, 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 200 properties containing 67,762 apartment homes across
the United States. Upon completion of six properties under development,
the Company's portfolio will increase to 69,802 apartment homes in 206
properties. Camden was recently named by FORTUNE® Magazine for the fifth
consecutive year as one of the “100 Best Companies to Work For” in
America, ranking #7.
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 | | 2012 |
| 2011 | | 2012 |
| 2011 |
| Property revenues | | | | | | | | |
|
Rental revenues
| |
$
|
166,179
| | |
$
|
140,332
| | |
$
|
477,501
| | |
$
|
412,794
| |
|
Other property revenues
| |
|
28,025
|
|
|
|
23,892
|
| |
|
79,322
|
|
|
|
68,605
|
|
|
Total property revenues
| |
|
194,204
|
|
|
|
164,224
|
| |
|
556,823
|
|
|
|
481,399
|
|
| | | | | | | |
|
| Property expenses | | | | | | | | |
|
Property operating and maintenance
| | |
54,008
| | | |
48,731
| | | |
153,491
| | | |
138,974
| |
|
Real estate taxes
| |
|
19,096
|
|
|
|
16,892
|
| |
|
56,586
|
|
|
|
51,596
|
|
|
Total property expenses
| |
|
73,104
|
|
|
|
65,623
|
| |
|
210,077
|
|
|
|
190,570
|
|
| | | | | | | |
|
| Non-property income | | | | | | | | |
|
Fee and asset management
| | |
3,041
| | | |
2,646
| | | |
9,572
| | | |
6,955
| |
|
Interest and other income (loss)
| | |
3
| | | |
(108
|
)
| | |
(750
|
)
| | |
4,749
| |
|
Income (loss) on deferred compensation plans
| |
|
(1,781
|
)
|
|
|
(6,096
|
)
| |
|
3,820
|
|
|
|
1,233
|
|
|
Total non-property income
| |
|
1,263
|
|
|
|
(3,558
|
)
| |
|
12,642
|
|
|
|
12,937
|
|
| | | | | | | |
|
| Other expenses | | | | | | | | |
|
Property management
| | |
5,509
| | | |
5,050
| | | |
15,644
| | | |
15,478
| |
|
Fee and asset management
| | |
1,864
| | | |
1,330
| | | |
5,051
| | | |
4,220
| |
|
General and administrative
| | |
9,303
| | | |
8,572
| | | |
27,712
| | | |
26,392
| |
|
Interest
| | |
25,865
| | | |
27,354
| | | |
78,795
| | | |
85,472
| |
|
Depreciation and amortization
| | |
52,588
| | | |
43,367
| | | |
155,579
| | | |
133,547
| |
|
Amortization of deferred financing costs
| | |
909
| | | |
1,344
| | | |
2,721
| | | |
4,761
| |
|
Expense (benefit) on deferred compensation plans
| |
|
(1,781
|
)
|
|
|
(6,096
|
)
| |
|
3,820
|
|
|
|
1,233
|
|
|
Total other expenses
| |
|
94,257
|
|
|
|
80,921
|
| |
|
289,322
|
|
|
|
271,103
|
|
| | | | | | | |
|
| | | | | | | |
|
|
Gain on acquisition of controlling interests in joint ventures
| | |
-
| | | |
-
| | | |
40,191
| | | |
-
| |
|
Gain on sale of properties, including land
| | |
-
| | | |
-
| | | |
-
| | | |
4,748
| |
|
Gain on sale of unconsolidated joint venture interests
| | |
-
| | | |
-
| | | |
-
| | | |
1,136
| |
|
Loss on discontinuation of hedging relationship
| | |
-
| | | |
-
| | | |
-
| | | |
(29,791
|
)
|
|
Equity in income (loss) of joint ventures
| |
|
3,688
|
|
|
|
(556
|
)
| |
|
4,686
|
|
|
|
(166
|
)
|
| Income from continuing operations before income taxes | | | 31,794 | | | | 13,566 | | | | 114,943 | | | | 8,590 | |
|
Income tax expense - current
| |
|
(334
|
)
|
|
|
(313
|
)
| |
|
(992
|
)
|
|
|
(1,889
|
)
|
| Income from continuing operations | | | 31,460 | | | | 13,253 | | | | 113,951 | | | | 6,701 | |
|
Income from discontinued operations
| | |
343
| | | |
1,098
| | | |
1,262
| | | |
3,196
| |
|
Gain on sale of discontinued operations, net of tax
| |
|
-
|
|
|
|
-
|
| |
|
32,541
|
|
|
|
-
|
|
| Net income | | | 31,803 | | | | 14,351 | | | | 147,754 | | | | 9,897 | |
|
Less income allocated to noncontrolling interests from continuing
operations
| | |
(1,100
|
)
| | |
(752
|
)
| | |
(3,009
|
)
| | |
(2,089
|
)
|
|
Less income, including gain on sale, allocated to noncontrolling
interests from discontinued operations
| | |
-
| | | |
(9
|
)
| | |
(670
|
)
| | |
(29
|
)
|
|
Less income allocated to perpetual preferred units
| | |
-
| | | |
(1,750
|
)
| | |
(776
|
)
| | |
(5,250
|
)
|
|
Less write off of original issuance costs of redeemed perpetual
preferred units
| |
|
-
|
|
|
|
-
|
| |
|
(2,075
|
)
|
|
|
-
|
|
| Net income attributable to common shareholders | | $ | 30,703 |
|
| $ | 11,840 |
| | $ | 141,224 |
|
| $ | 2,529 |
|
| | | | | | | |
|
| | | | | | | |
|
CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME | | | | | | |
| Net income | | $ | 31,803 | | | $ | 14,351 | | | $ | 147,754 | | | $ | 9,897 | |
| Other comprehensive income | | | | | | | | |
|
Unrealized loss on cash flow hedging activities
| | |
-
| | | |
-
| | | |
-
| | | |
(2,692
|
)
|
|
Reclassification of net losses on cash flow hedging activities
| | |
-
| | | |
108
| | | |
-
| | | |
39,660
| |
|
Reclassification of gain on available-for-sale investment to
earnings, net of tax
| | |
-
| | | |
-
| | | |
-
| | | |
(3,309
|
)
|
|
Reclassification of prior service cost on post retirement obligations
| |
|
7
|
|
|
|
-
|
| |
|
23
|
|
|
|
-
|
|
| Comprehensive income | | | 31,810 | | | | 14,459 | | | | 147,777 | | | | 43,556 | |
|
Less income allocated to noncontrolling interests from continuing
operations
| | |
(1,100
|
)
| | |
(752
|
)
| | |
(3,009
|
)
| | |
(2,089
|
)
|
|
Less income, including gain on sale, allocated to noncontrolling
interests from discontinued operations
| | |
-
| | | |
(9
|
)
| | |
(670
|
)
| | |
(29
|
)
|
|
Less income allocated to perpetual preferred units
| | |
-
| | | |
(1,750
|
)
| | |
(776
|
)
| | |
(5,250
|
)
|
|
Less write off of original issuance costs of redeemed perpetual
preferred units
| |
|
-
|
|
|
|
-
|
| |
|
(2,075
|
)
|
|
|
-
|
|
| Comprehensive income attributable to common shareholders | | $ | 30,710 |
|
| $ | 11,948 |
| | $ | 141,247 |
|
| $ | 36,188 |
|
| | | | | | | |
|
| | | | | | | |
|
PER SHARE DATA | | | | | | | | |
|
Net income attributable to common shareholders - basic
| |
$
|
0.36
| | |
$
|
0.16
| | |
$
|
1.69
| | |
$
|
0.03
| |
|
Net income attributable to common shareholders - diluted
| | |
0.35
| | | |
0.16
| | | |
1.66
| | | |
0.03
| |
|
Income (loss) from continuing operations attributable to common
shareholders - basic
| | |
0.35
| | | |
0.14
| | | |
1.29
| | | |
(0.01
|
)
|
|
Income (loss) from continuing operations attributable to common
shareholders - diluted
| | |
0.35
| | | |
0.14
| | | |
1.27
| | | |
(0.01
|
)
|
| | | | | | | |
|
| Weighted average number of common and | | | | | | | | |
| common equivalent shares outstanding: | | | | | | | | |
|
Basic
| | |
85,631
| | | |
73,242
| | | |
82,923
| | | |
72,502
| |
|
Diluted
| | |
86,293
| | | |
74,274
| | | |
84,694
| | | |
72,502
| |
|
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 | | 2012 |
| 2011 | | 2012 |
| 2011 |
| | | | | | | |
|
| Net income attributable to common shareholders (a) | | $ | 30,703 | | | $ | 11,840 | | $ | 141,224 | | | $ | 2,529 | |
|
Real estate depreciation from continuing operations
| | |
51,477
| | | |
42,095
| | |
152,246
| | | |
129,778
| |
|
Real estate depreciation and amortization from discontinued
operations
| | |
221
| | | |
1,191
| | |
844
| | | |
3,564
| |
|
Adjustments for unconsolidated joint ventures
| | |
1,885
| | | |
3,223
| | |
6,198
| | | |
7,042
| |
|
Income allocated to noncontrolling interests
| | |
702
| | | |
458
| | |
2,504
| | | |
1,494
| |
|
(Gain) on sale of unconsolidated joint venture property
| | |
(2,875
|
)
| | |
-
| | |
(2,875
|
)
| | |
-
| |
|
(Gain) on acquisition of controlling interests in joint ventures
| | |
-
| | | |
-
| | |
(40,191
|
)
| | |
-
| |
|
(Gain) on sale of discontinued operations, net of tax
| | |
-
| | | |
-
| | |
(32,541
|
)
| | |
-
| |
|
(Gain) on sale of unconsolidated joint venture interests
| |
|
-
|
|
|
|
-
| |
|
-
|
|
|
|
(1,136
|
)
|
| Funds from operations - diluted | | $ | 82,113 |
|
| $ | 58,807 | | $ | 227,409 |
|
| $ | 143,271 |
|
| | | | | | | |
|
PER SHARE DATA | | | | | | | | |
|
Funds from operations - diluted
| |
$
|
0.93
| | |
$
|
0.77
| |
$
|
2.65
| | |
$
|
1.89
| |
|
Cash distributions
| | |
0.56
| | | |
0.49
| | |
1.68
| | | |
1.47
| |
| | | | | | | |
|
| Weighted average number of common and | | | | | | | | |
| common equivalent shares outstanding: | | | | | | | | |
|
FFO - diluted
| | |
88,514
| | | |
76,494
| | |
85,822
| | | |
75,685
| |
| | | | | | | |
|
PROPERTY DATA | | | | | | | | |
|
Total operating properties (end of period) (b) | | |
203
| | | |
197
| | |
203
| | | |
197
| |
|
Total operating apartment homes in operating properties (end of
period) (b) | | |
68,831
| | | |
67,491
| | |
68,831
| | | |
67,491
| |
|
Total operating apartment homes (weighted average)
| | |
54,934
| | | |
50,921
| | |
53,870
| | | |
50,895
| |
|
Total operating apartment homes - excluding discontinued operations
(weighted average)
| | |
54,461
| | | |
48,627
| | |
53,204
| | | |
48,601
| |
(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. |
|
| |
| |
| |
| |
| |
| CAMDEN | | BALANCE SHEETS |
| | (In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | |
|
| (Unaudited) | | Sept 30, | | Jun 30, | | Mar 31, | | Dec 31, | | Sep 30, |
| | 2012 |
| 2012 |
| 2012 |
| 2011 |
| 2011 |
| ASSETS | | | | | | | | | | |
|
Real estate assets, at cost
| | | | | | | | | | |
|
Land
| |
$
|
929,289
| | |
$
|
893,910
| | |
$
|
868,964
| | |
$
|
768,016
| | |
$
|
766,302
| |
|
Buildings and improvements
| |
|
5,359,707
|
|
|
|
5,203,675
|
|
|
|
5,068,560
|
|
|
|
4,751,654
|
|
|
|
4,758,397
|
|
| | |
6,288,996
| | | |
6,097,585
| | | |
5,937,524
| | | |
5,519,670
| | | |
5,524,699
| |
|
Accumulated depreciation
| |
|
(1,542,530
|
)
|
|
|
(1,505,862
|
)
|
|
|
(1,458,451
|
)
|
|
|
(1,432,799
|
)
|
|
|
(1,421,867
|
)
|
|
Net operating real estate assets
| | |
4,746,466
| | | |
4,591,723
| | | |
4,479,073
| | | |
4,086,871
| | | |
4,102,832
| |
|
Properties under development, including land
| | |
280,948
| | | |
297,712
| | | |
301,282
| | | |
299,870
| | | |
274,201
| |
|
Investments in joint ventures
| | |
46,566
| | | |
47,776
| | | |
49,436
| | | |
44,844
| | | |
37,033
| |
|
Properties held for sale
| |
|
6,373
|
|
|
|
-
|
|
|
|
-
|
|
|
|
11,131
|
|
|
|
-
|
|
|
Total real estate assets
| | |
5,080,353
| | | |
4,937,211
| | | |
4,829,791
| | | |
4,442,716
| | | |
4,414,066
| |
|
Accounts receivable - affiliates
| | |
28,874
| | | |
29,940
| | | |
29,742
| | | |
31,035
| | | |
31,395
| |
|
Other assets, net (a) | | |
96,401
| | | |
88,002
| | | |
89,706
| | | |
88,089
| | | |
87,657
| |
|
Cash and cash equivalents
| | |
5,590
| | | |
52,126
| | | |
49,702
| | | |
55,159
| | | |
56,099
| |
|
Restricted cash
| |
|
6,742
|
|
|
|
5,295
|
|
|
|
5,074
|
|
|
|
5,076
|
|
|
|
5,357
|
|
|
Total assets
| |
$
|
5,217,960
|
|
|
$
|
5,112,574
|
|
|
$
|
5,004,015
|
|
|
$
|
4,622,075
|
|
|
$
|
4,594,574
|
|
| | | | | | | | | |
|
| | | | | | | | | |
|
| | | | | | | | | |
|
| LIABILITIES AND EQUITY | | | | | | | | | | |
|
Liabilities
| | | | | | | | | | |
|
Notes payable
| | | | | | | | | | |
|
Unsecured
| |
$
|
1,415,354
| | |
$
|
1,381,152
| | |
$
|
1,380,952
| | |
$
|
1,380,755
| | |
$
|
1,380,560
| |
|
Secured
| | |
978,371
| | | |
1,015,260
| | | |
1,050,154
| | | |
1,051,357
| | | |
1,052,544
| |
|
Accounts payable and accrued expenses
| | |
118,879
| | | |
87,041
| | | |
105,370
| | | |
93,747
| | | |
97,613
| |
|
Accrued real estate taxes
| | |
43,757
| | | |
31,607
| | | |
17,991
| | | |
21,883
| | | |
37,721
| |
|
Distributions payable
| | |
49,940
| | | |
49,135
| | | |
47,594
| | | |
39,364
| | | |
39,319
| |
|
Other liabilities (b) | |
|
78,551
|
|
|
|
83,471
|
|
|
|
90,423
|
|
|
|
109,276
|
|
|
|
111,043
|
|
|
Total liabilities
| | |
2,684,852
| | | |
2,647,666
| | | |
2,692,484
| | | |
2,696,382
| | | |
2,718,800
| |
| | | | | | | | | |
|
|
Commitments and contingencies
| | | | | | | | | | |
| | | | | | | | | |
|
|
Perpetual preferred units
| | |
-
| | | |
-
| | | |
-
| | | |
97,925
| | | |
97,925
| |
| | | | | | | | | |
|
|
Equity
| | | | | | | | | | |
|
Common shares of beneficial interest
| | |
959
| | | |
945
| | | |
919
| | | |
845
| | | |
839
| |
|
Additional paid-in capital
| | |
3,580,528
| | | |
3,501,354
| | | |
3,327,961
| | | |
2,901,024
| | | |
2,861,139
| |
|
Distributions in excess of net income attributable to common
shareholders
| | |
(692,235
|
)
| | |
(674,221
|
)
| | |
(648,074
|
)
| | |
(690,466
|
)
| | |
(700,897
|
)
|
|
Treasury shares, at cost
| | |
(425,756
|
)
| | |
(430,958
|
)
| | |
(437,215
|
)
| | |
(452,003
|
)
| | |
(452,244
|
)
|
|
Accumulated other comprehensive income (loss) (c) | |
|
(660
|
)
|
|
|
(667
|
)
|
|
|
(675
|
)
|
|
|
(683
|
)
|
|
|
201
|
|
|
Total common equity
| | |
2,462,836
| | | |
2,396,453
| | | |
2,242,916
| | | |
1,758,717
| | | |
1,709,038
| |
|
Noncontrolling interests
| |
|
70,272
|
|
|
|
68,455
|
|
|
|
68,615
|
|
|
|
69,051
|
|
|
|
68,811
|
|
|
Total equity
| |
|
2,533,108
|
|
|
|
2,464,908
|
|
|
|
2,311,531
|
|
|
|
1,827,768
|
|
|
|
1,777,849
|
|
|
Total liabilities and equity
| |
$
|
5,217,960
|
|
|
$
|
5,112,574
|
|
|
$
|
5,004,015
|
|
|
$
|
4,622,075
|
|
|
$
|
4,594,574
|
|
| | | | | | | | | |
|
| | | | | | | | | |
|
| | | | | | | | | |
|
| (a) Includes: | | | | | | | | | | |
| net deferred charges of: | | $ | 13,695 | | | $ | 14,432 | | | $ | 15,267 | | | $ | 16,102 | | | $ | 16,868 | |
| | | | | | | | | |
|
| (b) Includes: | | | | | | | | | | |
| deferred revenues of: | | $ | 1,746 | | | $ | 2,012 | | | $ | 2,337 | | | $ | 2,140 | | | $ | 2,213 | |
| distributions in excess of investments in joint ventures of: | | $ | 16,708 | | | $ | 16,499 | | | $ | 16,298 | | | $ | 30,596 | | | $ | 31,799 | |
| fair value adjustment of derivative instruments: | | $ | 185 | | | $ | 5,918 | | | $ | 11,574 | | | $ | 16,486 | | | $ | 22,192 | |
| | | | | | | | | |
|
| (c) Represents the unrealized (loss)/gain and unamortized prior
service costs on post retirement obligations. | | |
|
| |
| |
|
|
| |
| | |
CAMDEN | | NON-GAAP FINANCIAL MEASURES |
| | DEFINITIONS & RECONCILIATIONS |
| | (In thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | |
|
| | | | | | | | | | |
|
| (Unaudited) | | | | | | | | | | | |
| | | | | | | | | | |
|
This document contains certain non-GAAP financial measures
management believes are useful in evaluating an equity REIT's
performance. Camden's definitions and calculations of non-GAAP
financial measures may differ from those used by other REITs, and
thus may not be comparable. The non-GAAP financial measures should
not be considered as an alternative to net income as an indication
of our operating performance, or to net cash provided by operating
activities as a measure of our liquidity.
|
| | | | | | | | | | |
|
| | | | | | | | | | |
|
FFO | | | | | | | | | | | |
The National Association of Real Estate Investment Trusts
(“NAREIT”) currently defines FFO as net income attributable to
common shares computed in accordance with generally accepted
accounting principles (“GAAP”), excluding gains or losses from
depreciable operating property sales, plus real estate
depreciation and amortization, and after adjustments for
unconsolidated partnerships and joint ventures. Camden’s
definition of diluted FFO also assumes conversion of all dilutive
convertible securities, including minority interests, which are
convertible into common equity. The Company considers FFO to be an
appropriate supplemental measure of operating performance because,
by excluding gains or losses on dispositions of operating
properties and excluding depreciation, FFO can help one compare
the operating performance of a company's real estate between
periods or as compared to different companies. A reconciliation of
net income attributable to common shareholders to FFO is provided
below:
|
| | | | | | | | | | |
|
| | Three Months Ended | | | | Nine Months Ended | |
| | September 30, | | | | September 30, | |
| | 2012 |
| 2011 | | | | 2012 |
| 2011 | |
|
Net income (loss) attributable to common shareholders (a) | |
$
|
30,703
| | |
$
|
11,840
| | | | |
$
|
141,224
| | |
$
|
2,529
| | |
|
Real estate depreciation from continuing operations
| | |
51,477
| | | |
42,095
| | | | | |
152,246
| | | |
129,778
| | |
|
Real estate depreciation and amortization from discontinued
operations
| | |
221
| | | |
1,191
| | | | | |
844
| | | |
3,564
| | |
|
Adjustments for unconsolidated joint ventures
| | |
1,885
| | | |
3,223
| | | | | |
6,198
| | | |
7,042
| | |
|
Income allocated to noncontrolling interests
| | |
702
| | | |
458
| | | | | |
2,504
| | | |
1,494
| | |
|
(Gain) on sale of unconsolidated joint venture property
| | |
(2,875
|
)
| | |
-
| | | | | |
(2,875
|
)
| | |
-
| | |
|
(Gain) on acquisition of controlling interests in joint ventures
| | |
-
| | | |
-
| | | | | |
(40,191
|
)
| | |
-
| | |
|
(Gain) on sale of discontinued operations, net of tax
| | |
-
| | | |
-
| | | | | |
(32,541
|
)
| | |
-
| | |
|
(Gain) on sale of unconsolidated joint venture interests
| |
|
-
|
|
|
|
-
|
| | | |
|
-
|
|
|
|
(1,136
|
)
| |
|
Funds from operations - diluted
| |
$
|
82,113
|
|
|
$
|
58,807
|
| | | |
$
|
227,409
|
|
|
$
|
143,271
|
| |
| | | | | | | | | | |
|
|
Weighted average number of common and
| | | | | | | | | | | |
|
common equivalent shares outstanding:
| | | | | | | | | | | |
|
EPS diluted
| | |
86,293
| | | |
74,274
| | | | | |
84,694
| | | |
72,502
| | |
|
FFO diluted
| | |
88,514
| | | |
76,494
| | | | | |
85,822
| | | |
75,685
| | |
| | | | | | | | | | |
|
|
Net income (loss) attributable to common shareholders - diluted
| |
$
|
0.35
| | |
$
|
0.16
| | | | |
$
|
1.66
| | |
$
|
0.03
| | |
|
FFO per common share - diluted
| |
$
|
0.93
| | |
$
|
0.77
| | | | |
$
|
2.65
| | |
$
|
1.89
| | |
| | | | | | | | | | |
|
| | | | | | | | | | |
|
| (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:
|
| | | | | | | | | | |
|
| | 4Q12 Range | | | | 2012 Range | |
| | Low |
| High | | | | Low |
| High | |
| | | | | | | | | | |
|
|
Expected net income attributable to common shareholders per share -
diluted
| |
$
|
0.42
| | |
$
|
0.46
| | | | |
$
|
2.06
| | |
$
|
2.10
| | |
|
Expected real estate depreciation from continuing operations
| | |
0.56
| | | |
0.56
| | | | | |
2.33
| | | |
2.33
| | |
|
Expected real estate depreciation and amortization from discontinued
operations
| | |
0.00
| | | |
0.00
| | | | | |
0.01
| | | |
0.01
| | |
|
Expected adjustments for unconsolidated joint ventures
| | |
(0.05
|
)
| | |
(0.05
|
)
| | | | |
0.02
| | | |
0.02
| | |
|
Expected income allocated to noncontrolling interests
| | |
0.01
| | | |
0.01
| | | | | |
0.04
| | | |
0.04
| | |
(Gain) on sale of unconsolidated joint venture property
| | |
0.00
| | | |
0.00
| | | | | |
(0.03
|
)
| | |
(0.03
|
)
| |
|
Realized (gain) on acquisition of controlling interests in joint
ventures
| | |
0.00
| | | |
0.00
| | | | | |
(0.46
|
)
| | |
(0.46
|
)
| |
|
Realized (gain) on sale of discontinued operations, net of tax
| |
|
0.00
|
|
|
|
0.00
|
| | | |
|
(0.38
|
)
|
|
|
(0.38
|
)
| |
|
Expected FFO per share - diluted
| |
$
|
0.94
| | |
$
|
0.98
| | | | |
$
|
3.59
| | |
$
|
3.63
| | |
| | | | | | | | | | |
|
| | | | | | | | | | |
|
| | | | | | | | | | |
|
|
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, | |
| | 2012 |
| 2011 | | | | 2012 |
| 2011 | |
|
Net income attributable to common shareholders
| |
$
|
30,703
| | |
$
|
11,840
| | | | |
$
|
141,224
| | |
$
|
2,529
| | |
|
Less: Fee and asset management income
| | |
(3,041
|
)
| | |
(2,646
|
)
| | | | |
(9,572
|
)
| | |
(6,955
|
)
| |
|
Less: Interest and other (income) loss
| | |
(3
|
)
| | |
108
| | | | | |
750
| | | |
(4,749
|
)
| |
|
Less: Income (loss) on deferred compensation plans
| | |
1,781
| | | |
6,096
| | | | | |
(3,820
|
)
| | |
(1,233
|
)
| |
|
Plus: Property management expense
| | |
5,509
| | | |
5,050
| | | | | |
15,644
| | | |
15,478
| | |
|
Plus: Fee and asset management expense
| | |
1,864
| | | |
1,330
| | | | | |
5,051
| | | |
4,220
| | |
|
Plus: General and administrative expense
| | |
9,303
| | | |
8,572
| | | | | |
27,712
| | | |
26,392
| | |
|
Plus: Interest expense
| | |
25,865
| | | |
27,354
| | | | | |
78,795
| | | |
85,472
| | |
|
Plus: Depreciation and amortization
| | |
52,588
| | | |
43,367
| | | | | |
155,579
| | | |
133,547
| | |
|
Plus: Amortization of deferred financing costs
| | |
909
| | | |
1,344
| | | | | |
2,721
| | | |
4,761
| | |
|
Plus: Expense (benefit) on deferred compensation plans
| | |
(1,781
|
)
| | |
(6,096
|
)
| | | | |
3,820
| | | |
1,233
| | |
|
Less: Gain on acquisition of controlling interests in joint ventures
| | |
-
| | | |
-
| | | | | |
(40,191
|
)
| | |
-
| | |
|
Less: Gain on sale of properties, including land
| | |
-
| | | |
-
| | | | | |
-
| | | |
(4,748
|
)
| |
|
Less: Gain on sale of unconsolidated joint venture interests
| | |
-
| | | |
-
| | | | | |
-
| | | |
(1,136
|
)
| |
|
Plus: Loss on discontinuation of hedging relationship
| | |
-
| | | |
-
| | | | | |
-
| | | |
29,791
| | |
|
Less: Equity in income (loss) of joint ventures
| | |
(3,688
|
)
| | |
556
| | | | | |
(4,686
|
)
| | |
166
| | |
|
Plus: Income tax expense - current
| | |
334
| | | |
313
| | | | | |
992
| | | |
1,889
| | |
|
Less: Income from discontinued operations
| | |
(343
|
)
| | |
(1,098
|
)
| | | | |
(1,262
|
)
| | |
(3,196
|
)
| |
|
Less: Gain on sale of discontinued operations, net of tax
| | |
-
| | | |
-
| | | | | |
(32,541
|
)
| | |
-
| | |
|
Plus: Income allocated to noncontrolling interests from continuing
operations
| | |
1,100
| | | |
752
| | | | | |
3,009
| | | |
2,089
| | |
|
Plus: Income, including gain on sale, allocated to noncontrolling
interests from discontinued operations
| | |
-
| | | |
9
| | | | | |
670
| | | |
29
| | |
|
Plus: Income allocated to perpetual preferred units
| | |
-
| | | |
1,750
| | | | | |
776
| | | |
5,250
| | |
|
Plus: Write off of original issuance costs of redeemed perpetual
preferred units
| |
|
-
|
|
|
|
-
|
| | | |
|
2,075
|
|
|
|
-
|
| |
|
Net Operating Income (NOI)
| |
$
|
121,100
| | |
$
|
98,601
| | | | |
$
|
346,746
| | |
$
|
290,829
| | |
| | | | | | | | | | |
|
|
"Same Property" Communities
| |
$
|
105,939
| | |
$
|
95,735
| | | | |
$
|
309,612
| | |
$
|
282,528
| | |
|
Non-"Same Property" Communities
| | |
13,300
| | | |
2,567
| | | | | |
33,127
| | | |
7,839
| | |
|
Development and Lease-Up Communities
| | |
1,148
| | | |
-
| | | | | |
1,476
| | | |
-
| | |
|
Other
| |
|
713
|
|
|
|
299
|
| | | |
|
2,531
|
|
|
|
462
|
| |
|
Net Operating Income (NOI)
| |
$
|
121,100
| | |
$
|
98,601
| | | | |
$
|
346,746
| | |
$
|
290,829
| | |
| | | | | | | | | | |
|
| | | | | | | | | | |
|
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, gain on acquisition of controlling
interest in joint ventures, gain on sale of discontinued
operations, net of tax, 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, | |
| | 2012 |
| 2011 | | | | 2012 |
| 2011 | |
|
Net income attributable to common shareholders
| |
$
|
30,703
| | |
$
|
11,840
| | | | |
$
|
141,224
| | |
$
|
2,529
| | |
|
Plus: Interest expense
| | |
25,865
| | | |
27,354
| | | | | |
78,795
| | | |
85,472
| | |
|
Plus: Amortization of deferred financing costs
| | |
909
| | | |
1,344
| | | | | |
2,721
| | | |
4,761
| | |
|
Plus: Depreciation and amortization
| | |
52,588
| | | |
43,367
| | | | | |
155,579
| | | |
133,547
| | |
|
Plus: Income allocated to perpetual preferred units
| | |
-
| | | |
1,750
| | | | | |
776
| | | |
5,250
| | |
|
Plus: Write off of original issuance costs of redeemed perpetual
preferred units
| | |
-
| | | |
-
| | | | | |
2,075
| | | |
-
| | |
|
Plus: Income, including gain on sale, allocated to noncontrolling
interests from discontinued operations
| | |
-
| | | |
9
| | | | | |
670
| | | |
29
| | |
|
Plus: Income allocated to noncontrolling interests from continuing
operations
| | |
1,100
| | | |
752
| | | | | |
3,009
| | | |
2,089
| | |
|
Plus: Income tax expense - current
| | |
334
| | | |
313
| | | | | |
992
| | | |
1,889
| | |
|
Plus: Real estate depreciation and amortization from discontinued
operations
| | |
221
| | | |
1,191
| | | | | |
844
| | | |
3,564
| | |
|
Less: Gain on sale of properties, including land
| | |
-
| | | |
-
| | | | | |
-
| | | |
(4,748
|
)
| |
|
Less: Gain on sale of unconsolidated joint venture interests
| | |
-
| | | |
-
| | | | | |
-
| | | |
(1,136
|
)
| |
|
Less: Gain on acquisition of controlling interests in joint ventures
| | |
-
| | | |
-
| | | | | |
(40,191
|
)
| | |
-
| | |
|
Less: Equity in income (loss) of joint ventures
| | |
(3,688
|
)
| | |
556
| | | | | |
(4,686
|
)
| | |
166
| | |
|
Less: Gain on sale of discontinued operations, net of tax
| | |
-
| | | |
-
| | | | | |
(32,541
|
)
| | |
-
| | |
|
Plus: Loss on discontinuation of hedging relationship
| |
|
-
|
|
|
|
-
|
| | | |
|
-
|
|
|
|
29,791
|
| |
|
EBITDA
| |
$
|
108,032
| | |
$
|
88,476
| | | | |
$
|
309,267
| | |
$
|
263,203
| | |
Camden Property Trust
Kim Callahan, 713-354-2549
Source: Camden Property Trust