View all news

Camden Property Trust Announces Second Quarter 2022 Operating Results

07/28/2022

Camden Property Trust (NYSE:CPT) (the "Company") announced today operating results for the three and six months ended June 30, 2022. Net Income Attributable to Common Shareholders (“EPS”), Funds from Operations (“FFO”), and Adjusted Funds from Operations (“AFFO”) for the three and six months ended June 30, 2022 are detailed below. A reconciliation of EPS to FFO is included in the financial tables accompanying this press release.

 

 

Three Months Ended

Six Months Ended

 

June 30,

June 30,

Per Diluted Share

2022

2021

2022

2021

EPS (1)

$4.54

$0.30

$5.37

$0.61

FFO

$1.64

$1.28

$3.14

$2.52

AFFO

$1.44

$1.10

$2.81

$2.21

(1) For the three and six months ended June 30, 2022, EPS included a non-cash gain on acquisition of unconsolidated joint venture interests of approximately $4.32 and $4.37 per diluted share, respectively.

 

 

Quarterly Growth

Sequential Growth

Year-To-Date Growth

Same Property Results

2Q22 vs. 2Q21

2Q22 vs. 1Q22

2022 vs. 2021

Revenues

12.1%

3.2%

11.6%

Expenses

4.7%

2.7%

4.2%

Net Operating Income ("NOI")

16.5%

3.5%

16.0%

 
 

Same Property Results

2Q22

2Q21

1Q22

Occupancy

96.9%

96.9%

97.1%

 

For 2022, the Company defines same property communities as communities wholly-owned and stabilized since January 1, 2021, excluding communities under redevelopment and properties held for sale. A reconciliation of net income to NOI and same property NOI is included in the financial tables accompanying this press release.

 

Operating Statistics - Same Property Portfolio

New Lease and Renewal Data - Date Signed (1)

July 2022*

July 2021

2Q22

2Q21

New Lease Rates

13.5%

18.4%

16.3%

9.1%

Renewal Rates

12.7%

11.0%

14.4%

6.7%

Blended Rates

13.1%

14.5%

15.3%

7.9%

 

 

 

 

 

New Lease and Renewal Data - Date Effective (2)

July 2022*

July 2021

2Q22

2Q21

New Lease Rates

15.5%

13.0%

15.3%

5.2%

Renewal Rates

14.6%

6.6%

13.4%

4.1%

Blended Rates

15.1%

9.7%

14.3%

4.7%

 

 

 

 

 

*Data as of July 25, 2022

(1) Average change in same property new lease and renewal rates vs. expiring lease rates when signed.

(2) Average change in same property new lease and renewal rates vs. expiring lease rates when effective.

 

Occupancy and Turnover Data

July 2022*

July 2021

2Q22

2Q21

Occupancy

96.7%

97.1%

96.9%

96.9%

Annualized Gross Turnover

59%

60%

53%

54%

Annualized Net Turnover

52%

50%

46%

45%

*Data as of July 25, 2022

Development Activity

During the quarter, construction was completed at Camden Buckhead in Atlanta, GA and construction commenced at Camden Village District in Raleigh, NC. Leasing began at Camden Tempe II in Tempe, AZ and leasing continued at Camden Hillcrest in San Diego, CA.

 

Development Communities - Construction Completed and Projects in Lease-Up ($ in millions)

 

 

Total

Total

% Leased

Community Name

Location

Homes

Cost

as of 7/25/2022

Camden Buckhead

Atlanta, GA

366

$162.2

85%

Camden Hillcrest

San Diego, CA

132

91.7

82%

Total

 

498

$253.9

 

 

Development Communities - Construction Ongoing ($ in millions)

 

 

Total

Total

% Leased

Community Name

Location

Homes

Estimated Cost

as of 7/25/2022

Camden Tempe II

Tempe, AZ

397

$115.0

10%

Camden Atlantic

Plantation, FL

269

100.0

 

Camden NoDa

Charlotte, NC

387

105.0

 

Camden Durham

Durham, NC

420

145.0

 

Camden Village District

Raleigh, NC

369

138.0

 

Total

 

1,842

$603.0

 

 

Acquisition/Disposition Activity

During the quarter, Camden acquired two land parcels for a combined acreage of 42.6 in Charlotte, NC and a 3.8-acre land parcel in Nashville, TN for future development purposes.

In April 2022, Camden purchased the remaining 68.7% ownership interests in two discretionary Funds for cash consideration of approximately $1.1 billion, after adjusting for our assumption of approximately $515 million of existing secured mortgage debt of the Funds, which remains outstanding. The gross asset valuation of these communities acquired was approximately $2.1 billion and the Company now owns 100% of the interests in 7,247 apartment homes. In conjunction with this acquisition, we recognized a non-cash, non-FFO gain of approximately $474 million which represented a step-up to fair value on our previously held 31.3% equity interests in the Funds.

Capital Markets Transactions

During the quarter, the Company issued 2,900,000 common shares in a public equity offering and received approximately $490.3 million in net proceeds. The Company used the net proceeds to reduce borrowings under its $900 million unsecured line of credit.

Liquidity Analysis

As of June 30, 2022, Camden had approximately $907.8 million of liquidity comprised of approximately $72.1 million in cash and cash equivalents, and $835.7 million of availability under its unsecured credit facility. At quarter-end, the Company had $247.7 million left to fund under its existing wholly-owned development pipeline and no scheduled debt maturities until 3Q22.

Earnings Guidance

Camden updated its earnings guidance for 2022 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for third quarter 2022 as detailed below. Expected EPS excludes, gains, if any, from real estate transactions not completed by quarter end.

 

3Q22

2022

2022 Midpoint

Per Diluted Share

Range

Range

Current

Prior

Change

EPS

$0.24 - $0.28

$5.87 - $6.07

$5.97

$1.37

$4.60

FFO

$1.68 - $1.72

$6.48 - $6.68

$6.58

$6.51

$0.07

 

 

 

 

 

 

 

 

2022

2022 Midpoint

Same Property Growth

 

Range

Current

Prior

Change

Revenues

 

10.75% - 11.75%

11.25%

10.25%

1.00%

Expenses

 

4.50% - 5.50%

5.00%

4.20%

0.80%

NOI

 

13.75% - 15.75%

14.75%

13.75%

1.00%

Camden intends to update its earnings guidance to the market on a quarterly basis. Additional information on the Company’s 2022 financial outlook and a reconciliation of expected EPS to expected FFO are included in the financial tables accompanying this press release.

Conference Call

Friday, July 29, 2022 at 10:00 AM CT
Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061
Passcode: 6983346
Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=Hsqycs9l

The Company strongly encourages interested parties to join the call via webcast in order to view any associated videos, slide presentations, etc. The dial-in phone line will be reserved for accredited analysts and investors who plan to pose questions to Management during the Q&A session of the call.

Supplemental financial information is available in the Investors section of the Company’s website under Earnings Releases or by calling Camden’s Investor Relations Department at (713) 354-2787.

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 at the time of this publication, and the Company assumes no obligation to update or supplement these statements because of subsequent events.

About Camden

Camden Property Trust, an S&P 500 Company, is a real estate company primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns interests in and operates 171 properties containing 58,425 apartment homes across the United States. Upon completion of 5 properties currently under development, the Company’s portfolio will increase to 60,267 apartment homes in 176 properties. Camden has been recognized as one of the 100 Best Companies to Work For® by FORTUNE magazine for 15 consecutive years, most recently ranking #26.

For additional information, please contact Camden’s Investor Relations Department at (713) 354-2787 or access our website at camdenliving.com.

 

CAMDEN

OPERATING RESULTS
(In thousands, except per share amounts)

 

(Unaudited)

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

2021

 

2022

2021

OPERATING DATA

 

 

 

 

 

 

 

 

 

 

 

Property revenues (a)

$

361,716

 

$

276,523

 

 

$

673,075

 

$

544,091

 

 

 

 

 

 

 

Property expenses

 

 

 

 

 

Property operating and maintenance

 

79,418

 

 

65,544

 

 

 

149,855

 

 

129,023

 

Real estate taxes

 

48,393

 

 

37,427

 

 

 

88,266

 

 

74,880

 

Total property expenses

 

127,811

 

 

102,971

 

 

 

238,121

 

 

203,903

 

 

 

 

 

 

 

Non-property income

 

 

 

 

 

Fee and asset management

 

1,190

 

 

2,263

 

 

 

3,640

 

 

4,469

 

Interest and other income

 

662

 

 

257

 

 

 

2,793

 

 

589

 

Income/(loss) on deferred compensation plans

 

(14,678

)

 

6,400

 

 

 

(22,175

)

 

10,026

 

Total non-property income/(loss)

 

(12,826

)

 

8,920

 

 

 

(15,742

)

 

15,084

 

 

 

 

 

 

 

Other expenses

 

 

 

 

 

Property management

 

7,282

 

 

6,436

 

 

 

14,496

 

 

12,560

 

Fee and asset management

 

359

 

 

1,019

 

 

 

1,534

 

 

2,151

 

General and administrative

 

15,734

 

 

15,246

 

 

 

30,524

 

 

29,468

 

Interest

 

29,022

 

 

24,084

 

 

 

53,564

 

 

47,728

 

Depreciation and amortization

 

157,734

 

 

99,586

 

 

 

270,872

 

 

192,727

 

Expense/(benefit) on deferred compensation plans

 

(14,678

)

 

6,400

 

 

 

(22,175

)

 

10,026

 

Total other expenses

 

195,453

 

 

152,771

 

 

 

348,815

 

 

294,660

 

 

 

 

 

 

 

Gain on sale of operating property

 

 

 

 

 

 

36,372

 

 

 

Gain on acquisition of unconsolidated joint venture interests

 

474,146

 

 

 

 

 

474,146

 

 

 

Equity in income of joint ventures

 

 

 

2,198

 

 

 

3,048

 

 

4,112

 

Income from continuing operations before income taxes

 

499,772

 

 

31,899

 

 

 

583,963

 

 

64,724

 

Income tax expense

 

(886

)

 

(460

)

 

 

(1,476

)

 

(812

)

Net income

 

498,886

 

 

31,439

 

 

 

582,487

 

 

63,912

 

Less income allocated to non-controlling interests

 

(1,571

)

 

(1,260

)

 

 

(4,427

)

 

(2,386

)

Net income attributable to common shareholders

$

497,315

 

$

30,179

 

 

$

578,060

 

$

61,526

 

 

 

 

 

 

 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

 

 

 

 

Net income

$

498,886

 

$

31,439

 

 

$

582,487

 

$

63,912

 

Other comprehensive income

 

 

 

 

 

Reclassification of net loss on cash flow hedging activities, prior service cost and net loss on post retirement obligation

 

369

 

 

372

 

 

 

738

 

 

745

 

Comprehensive income

 

499,255

 

 

31,811

 

 

 

583,225

 

 

64,657

 

Less income allocated to non-controlling interests

 

(1,571

)

 

(1,260

)

 

 

(4,427

)

 

(2,386

)

Comprehensive income attributable to common shareholders

$

497,684

 

$

30,551

 

 

$

578,798

 

$

62,271

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

Total earnings per common share - basic

$

4.59

 

$

0.30

 

 

$

5.41

 

$

0.61

 

Total earnings per common share - diluted

 

4.54

 

 

0.30

 

 

 

5.37

 

 

0.61

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

Basic

 

108,106

 

 

100,701

 

 

 

106,729

 

 

100,127

 

Diluted

 

109,745

 

 

100,767

 

 

 

108,393

 

 

100,197

 

(a) We elected to combine lease and non-lease components and thus present rental revenue in a single line item in our consolidated statements of income and comprehensive income. For the three months ended June 30, 2022, we recognized $361.7 million of property revenue which consisted of approximately $320.9 million of rental revenue and approximately $40.8 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. This compares to property revenue of $276.5 million recognized for the three months ended June 30, 2021, made up of approximately $242.9 million of rental revenue and approximately $33.6 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. For the six months ended June 30, 2022, we recognized $673.1 million of property revenue which consisted of approximately $597.9 million of rental revenue and approximately $75.2 million of amounts received under contractual terms for other services considered to be non-lease contracts. This compares to the $544.1 million of property revenue recognized for the six months ended June 30, 2021, made up of approximately $478.6 million of rental revenue and approximately $65.5 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. Revenue related to utility rebilling to residents was $9.4 million and $7.6 million for the three months ended June 30, 2022 and 2021, respectively and was $17.7 million and $15.3 million for the six months ended June 30, 2022 and 2021, respectively.

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 June 30,

 

Six Months Ended June 30,

 

2022

2021

 

2022

2021

FUNDS FROM OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to common shareholders

$

497,315

 

$

30,179

 

 

$

578,060

 

$

61,526

 

Real estate depreciation and amortization

 

155,206

 

 

97,122

 

 

 

265,743

 

 

187,829

 

Adjustments for unconsolidated joint ventures

 

 

 

2,630

 

 

 

2,709

 

 

5,229

 

Income allocated to non-controlling interests

 

1,571

 

 

1,260

 

 

 

4,427

 

 

2,386

 

Gain on sale of operating property

 

 

 

 

 

 

(36,372

)

 

 

Gain on acquisition of unconsolidated joint venture interests

 

(474,146

)

 

 

 

 

(474,146

)

 

 

Funds from operations

$

179,946

 

$

131,191

 

 

$

340,421

 

$

256,970

 

 

 

 

 

 

 

Less: recurring capitalized expenditures (a)

 

(21,430

)

 

(18,808

)

 

 

(35,681

)

 

(31,488

)

 

 

 

 

 

 

Adjusted funds from operations

$

158,516

 

$

112,383

 

 

$

304,740

 

$

225,482

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

Funds from operations - diluted

$

1.64

 

$

1.28

 

 

$

3.14

 

$

2.52

 

Adjusted funds from operations - diluted

 

1.44

 

 

1.10

 

 

 

2.81

 

 

2.21

 

Distributions declared per common share

 

0.94

 

 

0.83

 

 

 

1.88

 

 

1.66

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

FFO/AFFO - diluted

 

109,745

 

 

102,444

 

 

 

108,393

 

 

101,896

 

 

 

 

 

 

 

PROPERTY DATA

 

 

 

 

 

Total operating properties (end of period) (b)

 

171

 

 

169

 

 

 

171

 

 

169

 

Total operating apartment homes in operating properties (end of period) (b)

 

58,425

 

 

57,611

 

 

 

58,425

 

 

57,611

 

Total operating apartment homes (weighted average)

 

58,282

 

 

49,887

 

 

 

54,608

 

 

49,663

 

(a) Capital expenditures necessary to help preserve the value of and maintain the functionality at our communities.

(b) Includes joint ventures and properties held for sale, if any.

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)

 

Jun 30,
2022

Mar 31,
2022

Dec 31,
2021

Sep 30,
2021

Jun 30,
2021

ASSETS

 

 

 

 

 

Real estate assets, at cost

 

 

 

 

 

Land

$

1,695,118

 

$

1,343,209

 

$

1,349,594

 

$

1,317,431

 

$

1,285,634

 

Buildings and improvements

 

10,440,037

 

 

8,651,674

 

 

8,624,734

 

 

8,536,620

 

 

8,288,865

 

 

 

12,135,155

 

 

9,994,883

 

 

9,974,328

 

 

9,854,051

 

 

9,574,499

 

Accumulated depreciation

 

(3,572,764

)

 

(3,436,969

)

 

(3,358,027

)

 

(3,319,206

)

 

(3,219,085

)

Net operating real estate assets

 

8,562,391

 

 

6,557,914

 

 

6,616,301

 

 

6,534,845

 

 

6,355,414

 

Properties under development, including land

 

581,844

 

 

488,100

 

 

474,739

 

 

428,622

 

 

443,100

 

Investments in joint ventures

 

 

 

13,181

 

 

13,730

 

 

17,788

 

 

18,415

 

Total real estate assets

 

9,144,235

 

 

7,059,195

 

 

7,104,770

 

 

6,981,255

 

 

6,816,929

 

Accounts receivable – affiliates

 

13,258

 

 

13,258

 

 

18,664

 

 

18,686

 

 

19,183

 

Other assets, net (a)

 

249,865

 

 

254,763

 

 

234,370

 

 

252,079

 

 

241,687

 

Cash and cash equivalents

 

72,095

 

 

1,129,716

 

 

613,391

 

 

428,226

 

 

374,556

 

Restricted cash

 

6,563

 

 

5,778

 

 

5,589

 

 

5,321

 

 

4,762

 

Total assets

$

9,486,016

 

$

8,462,710

 

$

7,976,784

 

$

7,685,567

 

$

7,457,117

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Liabilities

 

 

 

 

 

Notes payable

 

 

 

 

 

Unsecured

$

3,222,252

 

$

3,671,309

 

$

3,170,367

 

$

3,169,428

 

$

3,168,492

 

Secured

 

514,698

 

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

195,070

 

 

169,973

 

 

191,651

 

 

191,648

 

 

155,057

 

Accrued real estate taxes

 

86,952

 

 

36,988

 

 

66,673

 

 

88,116

 

 

66,696

 

Distributions payable

 

103,621

 

 

100,880

 

 

88,786

 

 

87,919

 

 

86,689

 

Other liabilities (b)

 

186,143

 

 

197,021

 

 

193,052

 

 

194,634

 

 

193,975

 

Total liabilities

 

4,308,736

 

 

4,176,171

 

 

3,710,529

 

 

3,731,745

 

 

3,670,909

 

 

 

 

 

 

 

Equity

 

 

 

 

 

Common shares of beneficial interest

 

1,156

 

 

1,127

 

 

1,126

 

 

1,114

 

 

1,098

 

Additional paid-in capital

 

5,890,792

 

 

5,396,267

 

 

5,363,530

 

 

5,180,783

 

 

4,953,703

 

Distributions in excess of net income attributable to common shareholders

 

(452,865

)

 

(848,074

)

 

(829,453

)

 

(954,880

)

 

(897,761

)

Treasury shares

 

(328,975

)

 

(329,521

)

 

(333,974

)

 

(334,066

)

 

(334,161

)

Accumulated other comprehensive loss (c)

 

(3,001

)

 

(3,370

)

 

(3,739

)

 

(4,266

)

 

(4,638

)

Total common equity

 

5,107,107

 

 

4,216,429

 

 

4,197,490

 

 

3,888,685

 

 

3,718,241

 

Non-controlling interests

 

70,173

 

 

70,110

 

 

68,765

 

 

65,137

 

 

67,967

 

Total equity

 

5,177,280

 

 

4,286,539

 

 

4,266,255

 

 

3,953,822

 

 

3,786,208

 

Total liabilities and equity

$

9,486,016

 

$

8,462,710

 

$

7,976,784

 

$

7,685,567

 

$

7,457,117

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Includes net deferred charges of:

$

307

 

$

693

 

$

969

 

$

1,336

 

$

1,655

 

 

 

 

 

 

 

(b) Includes deferred revenues of:

$

358

 

$

384

 

$

334

 

$

208

 

$

232

 

 

 

 

 

 

 

(c) Represents the unrealized net loss and unamortized prior service costs on post retirement obligations, and unrealized net loss on cash flow hedging activities.

 

 

 

 

 

 

 

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 (computed in accordance with accounting principles generally accepted in the United States of America ("GAAP")), excluding depreciation and amortization related to real estate, gains (or losses) from the sale of certain real estate assets (depreciable real estate), impairments of certain real estate assets (depreciable real estate), gains or losses from change in control, and adjustments for unconsolidated joint ventures to reflect FFO on the same basis. Our calculation of diluted FFO also assumes conversion of all potentially dilutive securities, including certain non-controlling interests, which are convertible into common shares. We consider FFO to be an appropriate supplemental measure of operating performance because, by excluding gains or losses on dispositions of depreciable real estate, and depreciation, FFO can assist in the comparison of the operating performance of a company’s real estate investments between periods or to different companies. A reconciliation of net income attributable to common shareholders to FFO is provided below:

Adjusted FFO

In addition to FFO, we compute Adjusted FFO ("AFFO") as a supplemental measure of operating performance. AFFO is calculated utilizing FFO less recurring capital expenditures which are necessary to help preserve the value of and maintain the functionality at our communities. Our definition of recurring capital expenditures may differ from other REITs, and there can be no assurance our basis for computing this measure is comparable to other REITs. A reconciliation of FFO to AFFO is provided below:

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

2021

 

2022

2021

Net income attributable to common shareholders

$

497,315

 

$

30,179

 

 

$

578,060

 

$

61,526

 

Real estate depreciation and amortization

 

155,206

 

 

97,122

 

 

 

265,743

 

 

187,829

 

Adjustments for unconsolidated joint ventures

 

 

 

2,630

 

 

 

2,709

 

 

5,229

 

Income allocated to non-controlling interests

 

1,571

 

 

1,260

 

 

 

4,427

 

 

2,386

 

Gain on sale of operating property

 

 

 

 

 

 

(36,372

)

 

 

Gain on acquisition of unconsolidated joint venture interests

 

(474,146

)

 

 

 

 

(474,146

)

 

 

Funds from operations

$

179,946

 

$

131,191

 

 

$

340,421

 

$

256,970

 

 

 

 

 

 

 

Less: recurring capitalized expenditures

 

(21,430

)

 

(18,808

)

 

 

(35,681

)

 

(31,488

)

 

 

 

 

 

 

Adjusted funds from operations

$

158,516

 

$

112,383

 

 

$

304,740

 

$

225,482

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

EPS diluted

 

109,745

 

 

100,767

 

 

 

108,393

 

 

100,197

 

FFO/AFFO diluted

 

109,745

 

 

102,444

 

 

 

108,393

 

 

101,896

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

2021

 

2022

2021

Total Earnings Per Common Share - Diluted

$

4.54

 

$

0.30

 

 

$

5.37

 

$

0.61

 

Real estate depreciation and amortization

 

1.41

 

 

0.95

 

 

 

2.45

 

 

1.84

 

Adjustments for unconsolidated joint ventures

 

 

 

0.02

 

 

 

0.02

 

 

0.05

 

Income allocated to non-controlling interests

 

0.01

 

 

0.01

 

 

 

0.01

 

 

0.02

 

Gain on sale of operating property

 

 

 

 

 

 

(0.34

)

 

 

Gain on acquisition of unconsolidated joint venture interests

 

(4.32

)

 

 

 

 

(4.37

)

 

 

FFO per common share - Diluted

$

1.64

 

$

1.28

 

 

$

3.14

 

$

2.52

 

 

 

 

 

 

 

Less: recurring capitalized expenditures

 

(0.20

)

 

(0.18

)

 

 

(0.33

)

 

(0.31

)

 

 

 

 

 

 

AFFO per common share - Diluted

$

1.44

 

$

1.10

 

 

$

2.81

 

$

2.21

 

 

 

 

 

 

 

 

 

CAMDEN

 

NON-GAAP FINANCIAL MEASURES

 

 

DEFINITIONS & RECONCILIATIONS

 

 

(In thousands, except per share amounts)

(Unaudited)

 

 

 

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 earnings per common share (EPS). Guidance excludes gains, if any, from real estate transactions not sold as of quarter close due to the uncertain timing and extent of property dispositions and the resulting gains/losses on sales. A reconciliation of the ranges provided for diluted EPS to expected FFO per diluted share is provided below:

 

3Q22

Range

 

2022

Range

 

Low

High

 

Low

High

Expected earnings per common share - diluted

$

0.24

$

0.28

 

$

5.87

 

$

6.07

 

Expected real estate depreciation and amortization

 

1.43

 

1.43

 

 

5.18

 

 

5.18

 

Expected adjustments for unconsolidated joint ventures

 

 

 

 

0.02

 

 

0.02

 

Expected income allocated to non-controlling interests

 

0.01

 

0.01

 

 

0.07

 

 

0.07

 

(Gain) on acquisition of unconsolidated joint venture interests

 

 

 

 

(4.32

)

 

(4.32

)

Reported (gain) on sale of operating properties

 

 

 

 

(0.34

)

 

(0.34

)

Expected FFO per share - diluted

$

1.68

$

1.72

 

$

6.48

 

$

6.68

 

 

 

 

 

 

 

 

 

 

 

 

 

Note: This table contains forward-looking statements. Please see paragraph regarding forward-looking statements earlier in this document.

Net Operating Income (NOI)

NOI is defined by the Company as property revenue less property operating and maintenance expenses less real estate taxes. NOI is further detailed in the Components of Property NOI schedules on page 11 of the supplement. 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 June 30,

 

Six months ended June 30,

 

2022

2021

 

2022

2021

Net income

$

498,886

 

$

31,439

 

 

$

582,487

 

$

63,912

 

Less: Fee and asset management income

 

(1,190

)

 

(2,263

)

 

 

(3,640

)

 

(4,469

)

Less: Interest and other income

 

(662

)

 

(257

)

 

 

(2,793

)

 

(589

)

Less: Income/(loss) on deferred compensation plans

 

14,678

 

 

(6,400

)

 

 

22,175

 

 

(10,026

)

Plus: Property management expense

 

7,282

 

 

6,436

 

 

 

14,496

 

 

12,560

 

Plus: Fee and asset management expense

 

359

 

 

1,019

 

 

 

1,534

 

 

2,151

 

Plus: General and administrative expense

 

15,734

 

 

15,246

 

 

 

30,524

 

 

29,468

 

Plus: Interest expense

 

29,022

 

 

24,084

 

 

 

53,564

 

 

47,728

 

Plus: Depreciation and amortization expense

 

157,734

 

 

99,586

 

 

 

270,872

 

 

192,727

 

Plus: Expense/(benefit) on deferred compensation plans

 

(14,678

)

 

6,400

 

 

 

(22,175

)

 

10,026

 

Less: Gain on sale of operating property

 

 

 

 

 

 

(36,372

)

 

 

Less: Gain on acquisition of unconsolidated joint venture interests

 

(474,146

)

 

 

 

 

(474,146

)

 

 

Less: Equity in income of joint ventures

 

 

 

(2,198

)

 

 

(3,048

)

 

(4,112

)

Plus: Income tax expense

 

886

 

 

460

 

 

 

1,476

 

 

812

 

NOI

$

233,905

 

$

173,552

 

 

$

434,954

 

$

340,188

 

 

 

 

 

 

 

"Same Property" Communities

$

187,615

 

$

161,059

 

 

$

368,893

 

$

318,055

 

Non-"Same Property" Communities

 

43,416

 

 

7,154

 

 

 

60,093

 

 

12,440

 

Development and Lease-Up Communities

 

1,379

 

 

253

 

 

 

2,294

 

 

274

 

Other

 

1,495

 

 

5,086

 

 

 

3,674

 

 

9,419

 

NOI

$

233,905

 

$

173,552

 

 

$

434,954

 

$

340,188

 

 

 

CAMDEN

 

NON-GAAP FINANCIAL MEASURES

 

 

DEFINITIONS & RECONCILIATIONS

 

 

(In thousands, except per share amounts)

(Unaudited)

 

 

Adjusted EBITDA

Adjusted 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 operating properties including land, loss on early retirement of debt, as well as income (loss) allocated to non-controlling interests. The Company considers Adjusted 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. Annualized Adjusted EBITDA is Adjusted EBITDA as reported for the period multiplied by 4 for quarter results and by 2 for six month results. A reconciliation of net income attributable to common shareholders to Adjusted EBITDA is provided below:

 

 

Three months ended June 30,

 

Six months ended June 30,

 

2022

2021

 

2022

2021

Net income attributable to common shareholders

$

497,315

 

$

30,179

 

 

$

578,060

 

$

61,526

 

Plus: Interest expense

 

29,022

 

 

24,084

 

 

 

53,564

 

 

47,728

 

Plus: Depreciation and amortization expense

 

157,734

 

 

99,586

 

 

 

270,872

 

 

192,727

 

Plus: Income allocated to non-controlling interests

 

1,571

 

 

1,260

 

 

 

4,427

 

 

2,386

 

Plus: Income tax expense

 

886

 

 

460

 

 

 

1,476

 

 

812

 

Less: Gain on sale of operating property

 

 

 

 

 

 

(36,372

)

 

 

Less: Gain on acquisition of unconsolidated joint venture interests

 

(474,146

)

 

 

 

 

(474,146

)

 

 

Less: Equity in income of joint ventures

 

 

 

(2,198

)

 

 

(3,048

)

 

(4,112

)

Adjusted EBITDA

$

212,382

 

$

153,371

 

 

$

394,833

 

$

301,067

 

Annualized Adjusted EBITDA

$

849,528

 

$

613,484

 

 

$

789,666

 

$

602,134

 

 

Net Debt to Annualized Adjusted EBITDA

The Company believes Net Debt to Annualized Adjusted EBITDA to be an appropriate supplemental measure of evaluating balance sheet leverage. Net Debt is defined by the Company as the average monthly balance of Total Debt during the period, less the average monthly balance of Cash and Cash Equivalents during the period. The following tables reconcile average Total debt to Net debt and computes the ratio to Adjusted EBITDA for the following periods:

Net Debt:

 

 

 

Average monthly balance for the

 

Average monthly balance for the

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

 

 

2022

2021

 

2022

2021

Unsecured notes payable

 

 

$

3,231,938

 

$

3,168,180

 

 

$

3,284,799

 

$

3,167,713

 

Secured notes payable

 

 

 

514,650

 

 

 

 

 

257,325

 

 

 

Total debt

 

 

 

3,746,588

 

 

3,168,180

 

 

 

3,542,124

 

 

3,167,713

 

Less: Cash and cash equivalents

 

 

 

(31,302

)

 

(347,724

)

 

 

(360,731

)

 

(318,812

)

Net debt

 

 

$

3,715,286

 

$

2,820,456

 

 

$

3,181,393

 

$

2,848,901

 

 

 

 

 

 

 

 

 

Net Debt to Annualized Adjusted EBITDA:

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

 

 

2022

2021

 

2022

2021

Net debt

 

 

$

3,715,286

$

2,820,456

 

$

3,181,393

$

2,848,901

Annualized Adjusted EBITDA

 

 

 

849,528

 

613,484

 

 

789,666

 

602,134

Net Debt to Annualized Adjusted EBITDA

 

 

4.4x

4.6x

 

4.0x

4.7x

 

Kim Callahan, 713-354-2549

Source: Camden Property Trust

Multimedia Files:

Categories: Press Releases
View all news