HOUSTON--(BUSINESS WIRE)--
Camden Property Trust (NYSE: CPT) today announced operating results for
the three and twelve months ended December 31, 2013.
Funds from Operations (“FFO”)
FFO for the fourth quarter of 2013 totaled $1.08 per diluted share or
$96.9 million, as compared to $0.97 per diluted share or $85.9 million
for the same period in 2012. FFO for the twelve months ended December
31, 2013 totaled $4.11 per diluted share or $368.3 million, as compared
to $3.62 per diluted share or $313.3 million for the same period in 2012.
FFO for the twelve months ended December 31, 2013 included: a $5.1
million or $0.06 per diluted share impact from a promoted equity
interest recognized in conjunction with the sale of joint venture
properties; a $1.0 million or $0.01 per diluted share impact from
non-recurring fee income; and a $0.7 million or $0.01 per diluted share
gain on sale of undeveloped land. FFO for the twelve months ended
December 31, 2012 included a $2.1 million or $0.02 per diluted share
charge related to the redemption of perpetual preferred operating
partnership units.
Net Income Attributable to Common Shareholders
(“EPS”)
The Company reported EPS of $130.0 million or $1.46 per diluted share
for the fourth quarter of 2013, as compared to $142.2 million or $1.60
per diluted share for the same period in 2012. EPS for the three months
ended December 31, 2013 included a $91.1 million or $1.03 per diluted
share gain on sale of discontinued operations and a $3.2 million or
$0.04 per diluted share gain on sale of unconsolidated joint venture
properties. EPS for the three months ended December 31, 2012 included: a
$17.2 million or $0.20 per diluted share gain on acquisition of
controlling interests in joint ventures; an $82.5 million or $0.94 per
diluted share gain on sale of discontinued operations; and a $14.5
million or $0.17 per diluted share gain on sale of unconsolidated joint
venture properties.
For the twelve months ended December 31, 2013, Camden reported net
income attributable to common shareholders of $336.4 million or $3.78
per diluted share, as compared to $283.4 million or $3.30 per diluted
share for the same period in 2012. EPS for the twelve months ended
December 31, 2013 included: a $182.2 million or $2.06 per diluted share
gain on sale of discontinued operations; a $16.3 million or $0.18 per
diluted share gain on sale of unconsolidated joint venture properties; a
$5.1 million or $0.06 per diluted share impact from a promoted equity
interest recognized in conjunction with the sale of joint venture
properties; a $1.0 million or $0.01 per diluted share impact from
non-recurring fee income; and a $0.7 million or $0.01 per diluted share
gain on sale of undeveloped land. EPS for the twelve months ended
December 31, 2012 included: a $57.4 million or $0.67 per diluted share
gain on acquisition of controlling interests in joint ventures; a $115.1
million or $1.34 per diluted share gain on sale of discontinued
operations; a $17.4 million or $0.20 per diluted share gain on sale of
unconsolidated joint venture properties; and a $2.1 million or $0.02 per
diluted share charge related to the redemption of perpetual preferred
operating partnership units.
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 41,150 apartment homes included in consolidated same-property
results, fourth quarter 2013 same-property net operating income (“NOI”)
increased 6.4% compared to the fourth quarter of 2012, with revenues
increasing 4.8% and expenses increasing 1.9%. On a sequential basis,
fourth quarter 2013 same-property NOI increased 2.4% compared to the
third quarter of 2013, with revenues increasing 0.5% and expenses
declining 2.9% compared to the prior quarter. On a full-year basis, 2013
same-property NOI increased 6.2%, with revenues increasing 5.1% and
expenses increasing 3.1% compared to the same period in 2012.
Same-property physical occupancy levels for the combined portfolio
averaged 95.8% during the fourth quarter of 2013, compared to 95.1% in
the fourth quarter of 2012 and 95.4% in the third quarter of 2013.
The Company defines same-property communities as communities owned and
stabilized since January 1, 2012, excluding properties held for sale. A
reconciliation of net income to net operating income and same-property
net operating income is included in the financial tables accompanying
this press release.
Disposition Activity
Camden disposed of 8 wholly-owned apartment communities during the
quarter for a total of $170.5 million: Camden Gardens, a 256-home
community in Dallas, TX; Camden Springs, a 304-home community in Dallas,
TX; Camden Fountain Palms, a 192-home community in Peoria, AZ; Camden
Sierra, a 288-home community in Peoria, AZ; Camden Town Center, a
240-home community in Glendale, AZ; Camden Bay Pointe, a 368-home
community in Tampa, FL; Camden Citrus Park, a 247-home community in
Tampa, FL; and Camden Habersham, a 240-home community in Charlotte, NC.
The Company also disposed of two joint venture apartment communities
during the quarter for a total of $68.7 million: Camden Westover Hills,
a 288-home community in San Antonio, TX, and Camden Lakemont, a 312-home
community in Richmond, TX. Camden’s proportionate share of the gain on
sale was $3.2 million.
For full-year 2013, Camden’s dispositions totaled $329.3 million of
wholly-owned communities and $268.9 million of joint venture communities.
Development Activity
Construction began during the quarter at two new wholly-owned
communities: The Camden in Los Angeles, CA, a $145 million project with
287 apartment homes; and Camden Victory Park in Dallas, TX, an $82
million project with 423 apartment homes. The Company also commenced
construction on Camden Miramar Phase IXB in Corpus Christi, TX, an $8
million 75-unit expansion of an existing community.
Construction continued at 10 additional wholly-owned development
communities: Camden NOMA in Washington, DC, a $110 million project with
320 apartment homes which is currently 10% leased; Camden Lamar Heights
in Austin, TX, a $47 million project with 314 apartment homes; Camden
Flatirons in Denver, CO, a $78 million project with 424 apartment homes;
Camden Glendale in Glendale, CA, a $115 million project with 303
apartment homes; Camden Boca Raton in Boca Raton, FL, a $54 million
project with 261 apartment homes; Camden Paces in Atlanta, GA, a $110
million project with 379 apartment homes; Camden La Frontera in Round
Rock, TX, a $36 million project with 300 apartment homes; Camden
Foothills in Scottsdale, AZ, a $50 million project with 220 apartment
homes; Camden Hayden in Tempe, AZ, a $48 million project with 234
apartment homes; and Camden Gallery in Charlotte, NC, a $58 million
project with 323 apartment homes.
Lease-up continued during the quarter at Camden South Capitol in
Washington, DC, an $88 million joint venture project with 276 apartment
homes which is currently 64% leased. Construction continued at two other
joint venture development communities: Camden Waterford Lakes in
Orlando, FL, a $40 million project with 300 apartment homes which is
currently 41% leased; and Camden Southline in Charlotte, NC, a $48
million project with 266 apartment homes.
Quarterly Dividend Declaration
Camden’s Board of Trust Managers declared a first quarter 2014 dividend
of $0.66 per common share, which is a 4.8% increase over the Company’s
prior quarterly dividend of $0.63 per share. The dividend is payable on
April 17, 2014 to holders of record as of March 31, 2014. In declaring
the dividend, the Board of Trust Managers considered a number of
factors, including the Company’s past performance and future prospects,
as described in this release.
Earnings Guidance
Camden provided initial earnings guidance for 2014 based on its current
and expected views of the apartment market and general economic
conditions. Full-year 2014 FFO is expected to be $4.10 to $4.30 per
diluted share, and full-year 2014 EPS is expected to be $1.44 to $1.64
per diluted share. First quarter 2014 earnings guidance is $1.02 to
$1.06 per diluted share for FFO and $0.37 to $0.41 per diluted share for
EPS. Guidance for EPS excludes gains on real estate transactions.
The midpoint of the Company’s initial 2014 earnings guidance assumes net
dispositions of $200 million of wholly-owned assets and $450 million of
joint venture assets during 2014, with a corresponding reduction in
associated net fee and asset management income. The net impact to 2014
FFO from these planned dispositions is approximately $0.07 per diluted
share. Camden expects same-property revenue growth between 3.5% and
4.5%, expense growth between 3.25% and 4.25%, and NOI growth between
3.25% and 5.25%.
Camden intends to update its earnings guidance to the market on a
quarterly basis. Additional information on the Company’s 2014 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, January 31, 2014 at
11:00 a.m. Central Time to review its fourth quarter and full-year 2013
results and discuss its outlook for future performance. To participate
in the call, please dial (888) 317-6003 (Domestic) or (412) 317-6061
(International) by 10:50 a.m. Central Time and enter passcode: 1713299,
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 170 properties containing 59,899 apartment homes across
the United States. Upon completion of 14 properties under development
and the expansion of an existing community, the Company’s portfolio will
increase to 64,328 apartment homes in 184 properties. Camden was
recently named by FORTUNE® Magazine for the seventh consecutive year as
one of the “100 Best Companies to Work For” in America, ranking #11.
For additional information, please contact Camden’s Investor Relations
Department at (800) 922-6336 or (713) 354-2787 or access our website at camdenliving.com.
|
|
| | |
| | |
| CAMDEN | | | OPERATING RESULTS |
| | | (In thousands, except per share and property data amounts) |
|
|
|
|
|
|
|
|
|
| (Unaudited) | | | Three Months Ended | | Twelve Months Ended |
| | | December 31, | | December 31, |
OPERATING DATA | | | 2013 | 2012 | | 2013 | 2012 |
| Property revenues | | | | | | | |
|
Rental revenues
| | |
$
|
177,795
| |
$
|
159,207
| | |
$
|
683,362
| |
$
|
602,004
| |
|
Other property revenues
| | |
|
26,522
|
|
|
24,591
|
| |
|
105,489
|
|
|
96,314
|
|
|
Total property revenues
| | |
|
204,317
|
|
|
183,798
|
| |
|
788,851
|
|
|
698,318
|
|
| | | | | | |
|
| Property expenses | | | | | | | |
|
Property operating and maintenance
| | | |
50,297
| | |
47,453
| | | |
199,650
| | |
185,720
| |
|
Real estate taxes
| | |
|
21,582
|
|
|
18,087
|
| |
|
86,041
|
|
|
70,710
|
|
|
Total property expenses
| | |
|
71,879
|
|
|
65,540
|
| |
|
285,691
|
|
|
256,430
|
|
| | | | | | |
|
| Non-property income | | | | | | | |
|
Fee and asset management
| | | |
2,873
| | |
2,773
| | | |
11,690
| | |
12,345
| |
|
Interest and other income (loss)
| | | |
41
| | |
40
| | | |
1,217
| | |
(710
|
)
|
|
Income on deferred compensation plans
| | |
|
3,078
|
|
|
952
|
| |
|
8,290
|
|
|
4,772
|
|
|
Total non-property income
| | |
|
5,992
|
|
|
3,765
|
| |
|
21,197
|
|
|
16,407
|
|
| | | | | | |
|
| Other expenses | | | | | | | |
|
Property management
| | | |
5,196
| | |
6,152
| | | |
21,774
| | |
21,796
| |
|
Fee and asset management
| | | |
1,288
| | |
1,580
| | | |
5,756
| | |
6,631
| |
|
General and administrative
| | | |
9,209
| | |
9,816
| | | |
40,586
| | |
37,528
| |
|
Interest
| | | |
24,162
| | |
25,487
| | | |
98,129
| | |
104,246
| |
|
Depreciation and amortization
| | | |
55,878
| | |
50,556
| | | |
214,395
| | |
194,673
| |
|
Amortization of deferred financing costs
| | | |
859
| | |
887
| | | |
3,548
| | |
3,608
| |
|
Expense on deferred compensation plans
| | |
|
3,078
|
|
|
952
|
| |
|
8,290
|
|
|
4,772
|
|
|
Total other expenses
| | |
|
99,670
|
|
|
95,430
|
| |
|
392,478
|
|
|
373,254
|
|
| | | | | | |
|
| | | | | | |
|
|
Gain on sale of land
| | | |
-
| | |
-
| | | |
698
| | |
-
| |
|
Gain on acquisition of controlling interest in joint ventures
| | | |
-
| | |
17,227
| | | |
-
| | |
57,418
| |
|
Equity in income of joint ventures
| | |
|
4,207
|
|
|
15,489
|
| |
|
24,865
|
|
|
20,175
|
|
| Income from continuing operations before income taxes | | | | 42,967 | | | 59,309 | | | | 157,442 | | | 162,634 | |
|
Income tax expense - current
| | |
|
(239
|
)
|
|
(216
|
)
| |
|
(1,826
|
)
|
|
(1,208
|
)
|
| Income from continuing operations | | | | 42,728 | | | 59,093 | | | | 155,616 | | | 161,426 | |
|
Income from discontinued operations
| | | |
1,290
| | |
4,526
| | | |
8,515
| | |
17,406
| |
|
Gain on sale of discontinued operations, net of tax
| | |
|
91,101
|
|
|
82,527
|
| |
|
182,160
|
|
|
115,068
|
|
| Net income | | | | 135,119 | | | 146,146 | | | | 346,291 | | | 293,900 | |
|
Less income allocated to non-controlling interests from continuing
operations
| | | |
(1,128
|
)
| |
(1,811
|
)
| | |
(4,022
|
)
| |
(4,459
|
)
|
|
Less income, including gain on sale, allocated to non-controlling
interests from discontinued operations
| | | |
(3,995
|
)
| |
(2,169
|
)
| | |
(5,905
|
)
| |
(3,200
|
)
|
|
Less income allocated to perpetual preferred units
| | | |
-
| | |
-
| | | |
-
| | |
(776
|
)
|
|
Less write off of original issuance costs of redeemed perpetual
preferred units
| | |
|
-
|
|
|
-
|
| |
|
-
|
|
|
(2,075
|
)
|
| Net income attributable to common shareholders | | | $ | 129,996 |
| $ | 142,166 |
| | $ | 336,364 |
| $ | 283,390 |
|
| | | | | | |
|
| | | | | | |
|
CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME |
|
|
|
|
|
|
|
| Net income | | | $ | 135,119 | | $ | 146,146 | | | $ | 346,291 | | $ | 293,900 | |
| Other comprehensive income | | | | | | | |
|
Reclassification of prior service cost and net loss on post
retirement obligation
| | | |
13
| | |
7
| | | |
54
| | |
30
| |
|
Unrealized loss and unamortized prior service cost on post
retirement obligation
| | |
|
(99
|
)
|
|
(409
|
)
| |
|
(99
|
)
|
|
(409
|
)
|
| Comprehensive income | | | | 135,033 | | | 145,744 | | | | 346,246 | | | 293,521 | |
|
Less income allocated to non-controlling interests from continuing
operations
| | | |
(1,128
|
)
| |
(1,811
|
)
| | |
(4,022
|
)
| |
(4,459
|
)
|
|
Less income, including gain on sale, allocated to non-controlling
interests from discontinued operations
| | | |
(3,995
|
)
| |
(2,169
|
)
| | |
(5,905
|
)
| |
(3,200
|
)
|
|
Less income allocated to perpetual preferred units
| | | |
-
| | |
-
| | | |
-
| | |
(776
|
)
|
|
Less write off of original issuance costs of redeemed perpetual
preferred units
| | |
|
-
|
|
|
-
|
| |
|
-
|
|
|
(2,075
|
)
|
| Comprehensive income attributable to common shareholders | | | $ | 129,910 |
| $ | 141,764 |
| | $ | 336,319 |
| $ | 283,011 |
|
| | | | | | |
|
| | | | | | |
|
PER SHARE DATA | | | | | | | |
|
Net income attributable to common shareholders - basic
| | |
$
|
1.47
| |
$
|
1.63
| | |
$
|
3.82
| |
$
|
3.35
| |
Net income attributable to common shareholders - diluted
| | | |
1.46
| | |
1.60
| | | |
3.78
| | |
3.30
| |
|
Income from continuing operations attributable to common
shareholders - basic
| | | |
0.46
| | |
0.65
| | | |
1.70
| | |
1.81
| |
|
Income from continuing operations attributable to common
shareholders - diluted
| | | |
0.46
| | |
0.64
| | | |
1.69
| | |
1.79
| |
| | | | | | |
|
| Weighted average number of common and | | | | | | | |
| common equivalent shares outstanding: | | | | | | | |
|
Basic
| | | |
87,459
| | |
86,298
| | | |
87,204
| | |
83,772
| |
|
Diluted
| | | |
88,686
| | |
88,020
| | | |
88,494
| | |
85,556
| |
| | | | | | |
|
| | | | | | |
|
|
Note: Please refer to the following pages for definitions and
reconciliations of all non-GAAP financial measures presented in this
document.
|
|
|
| | |
| | |
| CAMDEN | FUNDS FROM OPERATIONS |
| (In thousands, except per share and property data amounts) |
|
|
|
|
|
|
|
| | | | |
|
| (Unaudited) | Three Months Ended | | Twelve Months Ended |
| December 31, | | December 31, |
FUNDS FROM OPERATIONS | 2013 | 2012 | | 2013 | 2012 |
| | | | |
|
| Net income attributable to common shareholders | $ | 129,996 | | $ | 142,166 | | | $ | 336,364 | | $ | 283,390 | |
|
Real estate depreciation from continuing operations
| |
54,520
| | |
49,454
| | | |
209,474
| | |
190,238
| |
|
Real estate depreciation and amortization from discontinued
operations
| |
199
| | |
2,893
| | | |
5,255
| | |
15,199
| |
|
Adjustments for unconsolidated joint ventures
| |
1,422
| | |
1,741
| | | |
5,738
| | |
7,939
| |
|
Income allocated to non-controlling interests
| |
5,123
| | |
3,971
| | | |
9,927
| | |
6,475
| |
|
(Gain) on sale of unconsolidated joint venture properties
| |
(3,245
|
)
| |
(14,543
|
)
| | |
(16,277
|
)
| |
(17,418
|
)
|
|
(Gain) on acquisition of controlling interests in joint ventures
| |
-
| | |
(17,227
|
)
| | |
-
| | |
(57,418
|
)
|
|
(Gain) on sale of discontinued operations, net of tax
|
|
(91,101
|
)
|
|
(82,527
|
)
| |
|
(182,160
|
)
|
|
(115,068
|
)
|
| Funds from operations - diluted | $ | 96,914 |
| $ | 85,928 |
| | $ | 368,321 |
| $ | 313,337 |
|
| | | | |
|
PER SHARE DATA | | | | | |
|
Funds from operations - diluted
|
$
|
1.08
| |
$
|
0.97
| | |
$
|
4.11
| |
$
|
3.62
| |
|
Cash distributions
| |
0.63
| | |
0.56
| | | |
2.52
| | |
2.24
| |
| | | | |
|
| Weighted average number of common and | | | | | |
| common equivalent shares outstanding: | | | | | |
|
FFO - diluted
| |
89,772
| | |
88,991
| | | |
89,580
| | |
86,619
| |
| | | | |
|
PROPERTY DATA | | | | | |
|
Total operating properties (end of period) (a) | |
170
| | |
193
| | | |
170
| | |
193
| |
|
Total operating apartment homes in operating properties (end of
period) (a) | |
59,899
| | |
65,775
| | | |
59,899
| | |
65,775
| |
|
Total operating apartment homes (weighted average)
| |
53,710
| | |
55,163
| | | |
54,181
| | |
54,194
| |
|
Total operating apartment homes - excluding discontinued operations
(weighted average)
| |
52,629
| | |
49,891
| | | |
51,759
| | |
48,194
| |
| | | | |
|
| | | | |
|
| (a) Includes joint ventures and properties held
for sale. |
| | | | |
|
| | | | |
|
|
Note: Please refer to the following pages for definitions and
reconciliations of all non-GAAP financial measures presented in this
document.
|
|
|
|
| |
| |
| |
| |
| |
| CAMDEN | | BALANCE SHEETS |
| | (In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | |
|
| (Unaudited) | | Dec 31, | | Sep 30, | | Jun 30, | | Mar 31, | | Dec 31, |
| | 2013 |
| 2013 |
| 2013 |
| 2013 |
| 2012 |
| ASSETS | | | | | | | | | | |
|
Real estate assets, at cost
| | | | | | | | | | |
|
Land
| |
$
|
969,711
| | |
$
|
967,121
| | |
$
|
965,257
| | |
$
|
949,244
| | |
$
|
949,777
| |
|
Buildings and improvements
| |
|
5,629,904
|
|
|
|
5,596,754
|
|
|
|
5,552,095
|
|
|
|
5,404,616
|
|
|
|
5,389,674
|
|
| | |
6,599,615
| | | |
6,563,875
| | | |
6,517,352
| | | |
6,353,860
| | | |
6,339,451
| |
|
Accumulated depreciation
| |
|
(1,643,713
|
)
|
|
|
(1,619,325
|
)
|
|
|
(1,604,402
|
)
|
|
|
(1,552,499
|
)
|
|
|
(1,518,896
|
)
|
|
Net operating real estate assets
| | |
4,955,902
| | | |
4,944,550
| | | |
4,912,950
| | | |
4,801,361
| | | |
4,820,555
| |
|
Properties under development, including land
| | |
472,566
| | | |
438,968
| | | |
393,694
| | | |
339,848
| | | |
334,463
| |
|
Investments in joint ventures
| | |
42,155
| | | |
43,338
| | | |
44,630
| | | |
45,260
| | | |
45,092
| |
|
Properties held for sale
| |
|
-
|
|
|
|
58,765
|
|
|
|
-
|
|
|
|
14,986
|
|
|
|
30,517
|
|
|
Total real estate assets
| | |
5,470,623
| | | |
5,485,621
| | | |
5,351,274
| | | |
5,201,455
| | | |
5,230,627
| |
|
Accounts receivable - affiliates
| | |
27,724
| | | |
27,474
| | | |
27,274
| | | |
26,948
| | | |
33,625
| |
|
Other assets, net (a) | | |
109,401
| | | |
112,520
| | | |
94,847
| | | |
89,233
| | | |
88,260
| |
|
Cash and cash equivalents
| | |
17,794
| | | |
4,707
| | | |
6,506
| | | |
59,642
| | | |
26,669
| |
|
Restricted cash
| |
|
6,599
|
|
|
|
60,889
|
|
|
|
6,381
|
|
|
|
5,578
|
|
|
|
5,991
|
|
|
Total assets
| |
$
|
5,632,141
|
|
|
$
|
5,691,211
|
|
|
$
|
5,486,282
|
|
|
$
|
5,382,856
|
|
|
$
|
5,385,172
|
|
| | | | | | | | | |
|
| | | | | | | | | |
|
| | | | | | | | | |
|
| LIABILITIES AND EQUITY | | | | | | | | | | |
|
Liabilities
| | | | | | | | | | |
|
Notes payable
| | | | | | | | | | |
|
Unsecured
| |
$
|
1,588,798
| | |
$
|
1,721,998
| | |
$
|
1,579,733
| | |
$
|
1,538,471
| | |
$
|
1,538,212
| |
|
Secured
| | |
941,968
| | | |
943,039
| | | |
944,090
| | | |
945,134
| | | |
972,256
| |
|
Accounts payable and accrued expenses
| | |
113,307
| | | |
124,336
| | | |
100,279
| | | |
102,307
| | | |
101,896
| |
|
Accrued real estate taxes
| | |
35,648
| | | |
50,247
| | | |
36,863
| | | |
20,683
| | | |
28,452
| |
|
Distributions payable
| | |
56,787
| | | |
56,793
| | | |
56,821
| | | |
56,559
| | | |
49,969
| |
|
Other liabilities (b) | |
|
88,272
|
|
|
|
69,716
|
|
|
|
63,366
|
|
|
|
69,679
|
|
|
|
67,679
|
|
|
Total liabilities
| | |
2,824,780
| | | |
2,966,129
| | | |
2,781,152
| | | |
2,732,833
| | | |
2,758,464
| |
| | | | | | | | | |
|
|
Commitments and contingencies
| | | | | | | | | | |
|
Non-Qualified deferred compensation share awards
| | |
47,180
| | | |
47,092
| | | |
-
| | | |
-
| | | |
-
| |
| | | | | | | | | |
|
|
Equity
| | | | | | | | | | |
|
Common shares of beneficial interest
| | |
967
| | | |
967
| | | |
967
| | | |
962
| | | |
962
| |
|
Additional paid-in capital
| | |
3,596,069
| | | |
3,595,536
| | | |
3,625,283
| | | |
3,590,261
| | | |
3,587,505
| |
|
Distributions in excess of net income attributable to common
shareholders
| | |
(494,167
|
)
| | |
(571,935
|
)
| | |
(574,286
|
)
| | |
(590,831
|
)
| | |
(598,951
|
)
|
|
Treasury shares, at cost
| | |
(410,227
|
)
| | |
(410,309
|
)
| | |
(410,665
|
)
| | |
(412,643
|
)
| | |
(425,355
|
)
|
|
Accumulated other comprehensive loss (c) | |
|
(1,106
|
)
|
|
|
(1,021
|
)
|
|
|
(1,035
|
)
|
|
|
(1,048
|
)
|
|
|
(1,062
|
)
|
|
Total common equity
| | |
2,691,536
| | | |
2,613,238
| | | |
2,640,264
| | | |
2,586,701
| | | |
2,563,099
| |
|
Non-controlling interests
| |
|
68,645
|
|
|
|
64,752
|
|
|
|
64,866
|
|
|
|
63,322
|
|
|
|
63,609
|
|
|
Total equity
| |
|
2,760,181
|
|
|
|
2,677,990
|
|
|
|
2,705,130
|
|
|
|
2,650,023
|
|
|
|
2,626,708
|
|
|
Total liabilities and equity
| |
$
|
5,632,141
|
|
|
$
|
5,691,211
|
|
|
$
|
5,486,282
|
|
|
$
|
5,382,856
|
|
|
$
|
5,385,172
|
|
| | | | | | | | | |
|
| | | | | | | | | |
|
| | | | | | | | | |
|
| (a) Includes: | | | | | | | | | | |
| net deferred charges of: | | $ | 14,497 | | | $ | 13,243 | | | $ | 14,008 | | | $ | 14,861 | | | $ | 15,635 | |
| | | | | | | | | |
|
| (b) Includes: | | | | | | | | | | |
| deferred revenues of: | | $ | 1,886 | | | $ | 1,979 | | | $ | 1,336 | | | $ | 2,158 | | | $ | 2,521 | |
| distributions in excess of investments in joint ventures of: | | $ | - | | | $ | - | | | $ | - | | | $ | 9,718 | | | $ | 9,509 | |
| fair value adjustment of derivative instruments: | | $ | - | | | $ | - | | | $ | - | | | | ($2 | ) | | | ($1 | ) |
| | | | | | | | | |
|
| (c) Represents the unrealized loss and unamortized prior service
costs on post retirement obligations. |
| | | | | | | | | |
|
|
|
|
|
| |
|
|
|
| |
| CAMDEN | 2014 Financial Outlook |
| as of January 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | |
|
| (Unaudited) | | | | | | | | | | |
| | | | | | | | | |
|
| 2013 Reported FFO, Adjusted for Non-Routine Items and Year End
Shares Outstanding |
| ($'s and shares in thousands) | | | | | | | | | | |
| | | | | Total | | | | | Per Share |
| 2013 Reported FFO | | | | | $ | 368,321 | | | | | | $ | 4.11 | |
| Adjustments for 2013 non-routine items: | | | | | | | | | | |
|
Less: Promoted equity interests
| | | | | |
(5,120
|
)
| | | | | |
(0.06
|
)
|
|
Less: Non-recurring fee income
| | | | | |
(1,000
|
)
| | | | | |
(0.01
|
)
|
|
Less: Gain on sale of properties, including land
| | | | | | (698 | ) | | | | | | (0.01 | ) |
| | | | | | | | | |
|
| 2013 FFO adjusted for non-routine items | | | | | $ | 361,503 | | | | | | $ | 4.04 | |
| | | | | | | | | |
|
|
2013 Fully Diluted Weighted Average Shares Outstanding - FFO
| | | | | | | | | | |
89,580
| |
| | | | | | | | | |
|
| December 31, 2013 Fully Diluted Weighted Average Shares Outstanding
- FFO
| | | | | | | | | | |
89,750
| |
| | | | | | | | | |
|
| 2013 FFO Adjusted for Non-Routine Items and December 31, 2013
Fully Diluted Shares Outstanding - FFO | | | | | | | | | | $ | 4.03 | |
| | | | | | | | | |
|
| | | | | | | | | |
|
| | | | | | | | | |
|
| 2014 Financial Outlook |
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | |
|
| Earnings Guidance - Per Diluted Share | | | | | | | | | | |
|
Expected FFO per share - diluted
| | | | | | | | | | $4.10 - $4.30 |
| | | | | | | | | |
|
| "Same Property" Communities | | | | | | | | | | |
|
Number of Units
| | | | | | | | | |
47,915
|
|
2013 Base Net Operating Income
| | | | | | | | | | $461 million |
|
Total Revenue Growth
| | | | | | | | | |
3.50% - 4.50%
|
|
Total Expense Growth
| | | | | | | | | |
3.25% - 4.25%
|
|
Net Operating Income Growth
| | | | | | | | | |
3.25% - 5.25%
|
| Impact from 1.0% change in NOI Growth is approximately $0.051 /
share | | | | | | | | | | |
| | | | | | | | | |
|
Impact from 2014 Revenue Enhancing Repositions included
in Same Store Net Operating Income Guidance (a) | | | | | | | | | |
0.50%
|
| | | | | | | | | |
|
|
Physical Occupancy
| | | | | | | | | |
95%
|
| | | | | | | | | |
|
| Capitalized Expenditures | | | | | | | | | | |
|
Recurring
| | | | | | | | | | $56 - $60 million |
|
Revenue Enhancing Repositions (a) | | | | | | | | | | $55 - $75 million |
| | | | | | | | | |
|
| Acquisitions/Dispositions | | | | | | | | | | |
|
Disposition Volume (consolidated on balance sheet)
| | | | | | | | | | $250 - $350 million |
|
Disposition Volume (joint venture)
| | | | | | | | | | $100 - $450 million |
|
Acquisition Volume (consolidated on balance sheet)
| | | | | | | | | | $50 - $150 million |
| | | | | | | | | |
|
| Development | | | | | | | | | | |
|
Development Starts (consolidated on balance sheet)
| | | | | | | | | | $150 - $300 million |
|
Development Spend (consolidated on balance sheet)
| | | | | | | | | | $450 - $550 million |
| | | | | | | | | |
|
| | | | | | | | | |
|
| Non-Property Income | | | | | | | | | | |
|
Non-Property Income, Net
| | | | | | | | | | $3 - $5 million |
| Includes: Fee and asset management income, net of expenses and | | | | | | | | | | |
| Interest and other income | | | | | | | | | | |
| | | | | | | | | |
|
| Corporate Expenses | | | | | | | | | | |
|
General and administrative expense (b) | | | | | | | | | | $39 - $41 million |
|
Property management expense
| | | | | | | | | | $22 - $24 million |
| | | | | | | | | |
|
| Capital | | | | | | | | | | |
|
Expected Capital Transactions
| | | | | | | | | | $250 - $350 million |
|
Expensed Interest
| | | | | | | | | | $91 - $95 million |
|
Capitalized Interest
| | | | | | | | | | $21 - $23 million |
| | | | | | | | | |
|
| | | | | | | | | |
|
| | | | | | | | | |
|
|
(a) Capital expenditures that improve a community's competitive
position, typically kitchen and bath upgrades or other new amenities.
|
|
(b) Excludes any third party acquisition costs.
|
| | | | | | | | | |
|
|
Note: This table contains forward-looking statements. Please see the
paragraph regarding forward-looking statements earlier in this
document. Additionally, please refer to the following pages for
definitions and reconciliations of all non-GAAP financial measures
presented in this document.
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
| CAMDEN | NON-GAAP FINANCIAL MEASURES |
| DEFINITIONS & RECONCILIATIONS |
| (In thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | | |
|
| (Unaudited) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
|
|
This document contains certain non-GAAP financial measures
management believes are useful in evaluating an equity REIT's
performance. Camden's definitions and calculations of non-GAAP
financial measures may differ from those used by other REITs, and
thus may not be comparable. The non-GAAP financial measures should
not be considered as an alternative to net income as an indication
of our operating performance, or to net cash provided by operating
activities as a measure of our liquidity.
|
| | | | | | | | | | | | | | | |
|
FFO | | | | | | | | | | | | | | | | |
| The National Association of Real Estate Investment Trusts (“NAREIT”)
currently defines FFO as net income attributable to common shares
computed in accordance with generally accepted accounting principles
(“GAAP”), excluding gains or losses from depreciable operating
property sales, plus real estate depreciation and amortization, and
after adjustments for unconsolidated partnerships and joint
ventures. Camden’s definition of diluted FFO also assumes conversion
of all dilutive convertible securities, including minority
interests, which are convertible into common equity. The Company
considers FFO to be an appropriate supplemental measure of operating
performance because, by excluding gains or losses on dispositions of
operating properties and excluding depreciation, FFO can help one
compare the operating performance of a company's real estate between
periods or as compared to different companies. A reconciliation of
net income attributable to common shareholders to FFO is provided
below:
|
| | | | | | | | | | | | | | | |
|
| Three Months Ended | | | | | Twelve Months Ended |
| December 31, | | | | | December 31, |
| 2013 |
|
|
|
| 2012 | | | | | 2013 |
|
|
|
| 2012 |
|
Net income attributable to common shareholders
|
$
|
129,996
| | | | | |
$
|
142,166
| | | | | |
$
|
336,364
| | | | | |
$
|
283,390
| |
|
Real estate depreciation from continuing operations
| |
54,520
| | | | | | |
49,454
| | | | | | |
209,474
| | | | | | |
190,238
| |
|
Real estate depreciation and amortization from discontinued
operations
| |
199
| | | | | | |
2,893
| | | | | | |
5,255
| | | | | | |
15,199
| |
|
Adjustments for unconsolidated joint ventures
| |
1,422
| | | | | | |
1,741
| | | | | | |
5,738
| | | | | | |
7,939
| |
|
Income allocated to non-controlling interests
| |
5,123
| | | | | | |
3,971
| | | | | | |
9,927
| | | | | | |
6,475
| |
|
(Gain) on sale of unconsolidated joint venture properties
| |
(3,245
|
)
| | | | | |
(14,543
|
)
| | | | | |
(16,277
|
)
| | | | | |
(17,418
|
)
|
|
(Gain) on acquisition of controlling interest in joint ventures
| |
-
| | | | | | |
(17,227
|
)
| | | | | |
-
| | | | | | |
(57,418
|
)
|
|
(Gain) on sale of discontinued operations, net of tax
|
|
(91,101
|
)
|
|
|
|
|
|
(82,527
|
)
| | | | |
|
(182,160
|
)
|
|
|
|
|
|
(115,068
|
)
|
|
Funds from operations - diluted
|
$
|
96,914
|
|
|
|
|
|
$
|
85,928
|
| | | | |
$
|
368,321
|
|
|
|
|
|
$
|
313,337
|
|
| | | | | | | | | | | | | | | |
|
|
Weighted average number of common and
| | | | | | | | | | | | | | | | |
|
common equivalent shares outstanding:
| | | | | | | | | | | | | | | | |
|
EPS diluted
| |
88,686
| | | | | | |
88,020
| | | | | | |
88,494
| | | | | | |
85,556
| |
|
FFO diluted
| |
89,772
| | | | | | |
88,991
| | | | | | |
89,580
| | | | | | |
86,619
| |
| | | | | | | | | | | | | | | |
|
|
Net income attributable to common shareholders - diluted
|
$
|
1.46
| | | | | |
$
|
1.60
| | | | | |
$
|
3.78
| | | | | |
$
|
3.30
| |
|
FFO per common share - diluted
|
$
|
1.08
| | | | | |
$
|
0.97
| | | | | |
$
|
4.11
| | | | | |
$
|
3.62
| |
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
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:
|
| | | | | | | | | | | | | | | |
|
| 1Q14 Range | | | | | 2014 Range |
| Low |
|
|
|
| High | | | | | Low |
|
|
|
| High |
| | | | | | | | | | | | | | | |
|
|
Expected net income attributable to common shareholders per share -
diluted
|
$
|
0.37
| | | | | |
$
|
0.41
| | | | | |
$
|
1.44
| | | | | |
$
|
1.64
| |
|
Expected real estate depreciation
| |
0.62
| | | | | | |
0.62
| | | | | | |
2.56
| | | | | | |
2.56
| |
|
Expected adjustments for unconsolidated joint ventures
| |
0.02
| | | | | | |
0.02
| | | | | | |
0.05
| | | | | | |
0.05
| |
|
Expected income allocated to non-controlling interests
|
|
0.01
|
|
|
|
|
|
|
0.01
|
| | | | |
|
0.05
|
|
|
|
|
|
|
0.05
|
|
|
Expected FFO per share - diluted
|
$
|
1.02
| | | | | |
$
|
1.06
| | | | | |
$
|
4.10
| | | | | |
$
|
4.30
| |
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
|
Note: This table contains forward-looking statements. Please see the
paragraph regarding forward-looking statements earlier in this
document.
|
|
|
|
|
Net Operating Income (NOI) | | | | | | | | | | | | | | | | |
|
NOI is defined by the Company as total property income less property
operating and maintenance expenses less real estate taxes. The
Company considers NOI to be an appropriate supplemental measure of
operating performance to net income attributable to common
shareholders because it reflects the operating performance of our
communities without allocation of corporate level property
management overhead or general and administrative costs. A
reconciliation of net income attributable to common shareholders to
net operating income is provided below:
|
| | | | | | | | | | | | | | | |
|
| Three Months Ended | | | | | Twelve Months Ended |
| December 31, | | | | | December 31, |
| 2013 |
|
|
|
| 2012 | | | | | 2013 |
|
|
|
| 2012 |
|
Net income attributable to common shareholders
|
$
|
129,996
| | | | | |
$
|
142,166
| | | | | |
$
|
336,364
| | | | | |
$
|
283,390
| |
|
Less: Fee and asset management income
| |
(2,873
|
)
| | | | | |
(2,773
|
)
| | | | | |
(11,690
|
)
| | | | | |
(12,345
|
)
|
|
Less: Interest and other (income) loss
| |
(41
|
)
| | | | | |
(40
|
)
| | | | | |
(1,217
|
)
| | | | | |
710
| |
|
Less: Income on deferred compensation plans
| |
(3,078
|
)
| | | | | |
(952
|
)
| | | | | |
(8,290
|
)
| | | | | |
(4,772
|
)
|
|
Plus: Property management expense
| |
5,196
| | | | | | |
6,152
| | | | | | |
21,774
| | | | | | |
21,796
| |
|
Plus: Fee and asset management expense
| |
1,288
| | | | | | |
1,580
| | | | | | |
5,756
| | | | | | |
6,631
| |
|
Plus: General and administrative expense
| |
9,209
| | | | | | |
9,816
| | | | | | |
40,586
| | | | | | |
37,528
| |
|
Plus: Interest expense
| |
24,162
| | | | | | |
25,487
| | | | | | |
98,129
| | | | | | |
104,246
| |
|
Plus: Depreciation and amortization
| |
55,878
| | | | | | |
50,556
| | | | | | |
214,395
| | | | | | |
194,673
| |
|
Plus: Amortization of deferred financing costs
| |
859
| | | | | | |
887
| | | | | | |
3,548
| | | | | | |
3,608
| |
|
Plus: Expense on deferred compensation plans
| |
3,078
| | | | | | |
952
| | | | | | |
8,290
| | | | | | |
4,772
| |
|
Less: Gain on sale of land
| |
-
| | | | | | |
-
| | | | | | |
(698
|
)
| | | | | |
-
| |
|
Less: Gain on acquisition of controlling interests in joint ventures
| |
-
| | | | | | |
(17,227
|
)
| | | | | |
-
| | | | | | |
(57,418
|
)
|
|
Less: Equity in income of joint ventures
| |
(4,207
|
)
| | | | | |
(15,489
|
)
| | | | | |
(24,865
|
)
| | | | | |
(20,175
|
)
|
|
Plus: Income tax expense - current
| |
239
| | | | | | |
216
| | | | | | |
1,826
| | | | | | |
1,208
| |
|
Less: Income from discontinued operations
| |
(1,290
|
)
| | | | | |
(4,526
|
)
| | | | | |
(8,515
|
)
| | | | | |
(17,406
|
)
|
|
Less: Gain on sale of discontinued operations, net of tax
| |
(91,101
|
)
| | | | | |
(82,527
|
)
| | | | | |
(182,160
|
)
| | | | | |
(115,068
|
)
|
|
Plus: Income allocated to non-controlling interests from continuing
operations
| |
1,128
| | | | | | |
1,811
| | | | | | |
4,022
| | | | | | |
4,459
| |
|
Plus: Income, including gain on sale, allocated to non-controlling
interests from discontinued operations
| |
3,995
| | | | | | |
2,169
| | | | | | |
5,905
| | | | | | |
3,200
| |
|
Plus: Income allocated to perpetual preferred units
| |
-
| | | | | | |
-
| | | | | | |
-
| | | | | | |
776
| |
|
Plus: Write off of original issuance costs of redeemed perpetual
preferred units
|
|
-
|
|
|
|
|
|
|
-
|
| | | | |
|
-
|
|
|
|
|
|
|
2,075
|
|
|
Net Operating Income (NOI)
|
$
|
132,438
| | | | | |
$
|
118,258
| | | | | |
$
|
503,160
| | | | | |
$
|
441,888
| |
| | | | | | | | | | | | | | | |
|
|
"Same Property" Communities
|
$
|
103,464
| | | | | |
$
|
97,196
| | | | | |
$
|
400,240
| | | | | |
$
|
376,864
| |
|
Non-"Same Property" Communities
| |
28,154
| | | | | | |
20,488
| | | | | | |
99,983
| | | | | | |
62,089
| |
|
Development and Lease-Up Communities
| |
(15
|
)
| | | | | |
(17
|
)
| | | | | |
(15
|
)
| | | | | |
(17
|
)
|
|
Other
|
|
835
|
|
|
|
|
|
|
591
|
| | | | |
|
2,952
|
|
|
|
|
|
|
2,952
|
|
|
Net Operating Income (NOI)
|
$
|
132,438
| | | | | |
$
|
118,258
| | | | | |
$
|
503,160
| | | | | |
$
|
441,888
| |
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
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 non-controlling interests. The Company
considers EBITDA to be an appropriate supplemental measure of
operating performance to net income attributable to common
shareholders because it represents income before non-cash
depreciation and the cost of debt, and excludes gains or losses from
property dispositions.
|
|
A reconciliation of net income attributable to common shareholders
to EBITDA is provided below:
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
|
| Three Months Ended | | | | | Twelve Months Ended |
| December 31, | | | | | December 31, |
| 2013 |
|
|
|
| 2012 | | | | | 2013 |
|
|
|
| 2012 |
|
Net income attributable to common shareholders
|
$
|
129,996
| | | | | |
$
|
142,166
| | | | | |
$
|
336,364
| | | | | |
$
|
283,390
| |
|
Plus: Interest expense
| |
24,162
| | | | | | |
25,487
| | | | | | |
98,129
| | | | | | |
104,246
| |
|
Plus: Amortization of deferred financing costs
| |
859
| | | | | | |
887
| | | | | | |
3,548
| | | | | | |
3,608
| |
|
Plus: Depreciation and amortization
| |
55,878
| | | | | | |
50,556
| | | | | | |
214,395
| | | | | | |
194,673
| |
|
Plus: Income allocated to perpetual preferred units
| |
-
| | | | | | |
-
| | | | | | |
-
| | | | | | |
776
| |
|
Plus: Write off of original issuance costs of redeemed perpetual
preferred units
| |
-
| | | | | | |
-
| | | | | | |
-
| | | | | | |
2,075
| |
|
Plus: Income allocated to non-controlling interests from continuing
operations
| |
1,128
| | | | | | |
1,811
| | | | | | |
4,022
| | | | | | |
4,459
| |
|
Plus: Income, including gain on sale, allocated to non-controlling
interests from discontinued operations
| |
3,995
| | | | | | |
2,169
| | | | | | |
5,905
| | | | | | |
3,200
| |
|
Plus: Interest expense from discontinued operations
| |
-
| | | | | | |
-
| | | | | | |
-
| | | | | | |
36
| |
|
Plus: Income tax expense - current
| |
239
| | | | | | |
216
| | | | | | |
1,826
| | | | | | |
1,208
| |
|
Plus: Real estate depreciation and amortization from discontinued
operations
| |
199
| | | | | | |
2,893
| | | | | | |
5,255
| | | | | | |
15,199
| |
|
Less: Gain on acquisition of controlling interests in joint ventures
| |
-
| | | | | | |
(17,227
|
)
| | | | | |
-
| | | | | | |
(57,418
|
)
|
|
Less: Gain on sale of land
| |
-
| | | | | | |
-
| | | | | | |
(698
|
)
| | | | | |
-
| |
|
Less: Equity in income of joint ventures
| |
(4,207
|
)
| | | | | |
(15,489
|
)
| | | | | |
(24,865
|
)
| | | | | |
(20,175
|
)
|
|
Less: Gain on sale of discontinued operations, net of tax
|
|
(91,101
|
)
|
|
|
|
|
|
(82,527
|
)
| | | | |
|
(182,160
|
)
|
|
|
|
|
|
(115,068
|
)
|
|
EBITDA
|
$
|
121,148
| | | | | |
$
|
110,942
| | | | | |
$
|
461,721
| | | | | |
$
|
420,209
| |
Camden Property Trust
Kim Callahan, 713-354-2549
Source: Camden Property Trust