Camden Property Trust Announces Third Quarter 2012 Operating Results

  Camden Property Trust Announces Third Quarter 2012 Operating Results

Business Wire

HOUSTON -- November 01, 2012

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            28,025     23,892      79,322     68,605  
revenues
Total property            194,204    164,224     556,823    481,399 
revenues
                                                                   
Property expenses
Property operating and     54,008        48,731        153,491       138,974
maintenance
Real estate taxes         19,096     16,892      56,586     51,596  
Total property            73,104     65,623      210,077    190,570 
expenses
                                                                   
Non-property income
Fee and asset              3,041         2,646         9,572         6,955
management
Interest and other         3             (108    )     (750    )     4,749
income (loss)
Income (loss) on
deferred compensation     (1,781  )   (6,096  )    3,820      1,233   
plans
Total non-property        1,263      (3,558  )    12,642     12,937  
income
                                                                   
Other expenses
Property management        5,509         5,050         15,644        15,478
Fee and asset              1,864         1,330         5,051         4,220
management
General and                9,303         8,572         27,712        26,392
administrative
Interest                   25,865        27,354        78,795        85,472
Depreciation and           52,588        43,367        155,579       133,547
amortization
Amortization of
deferred financing         909           1,344         2,721         4,761
costs
Expense (benefit) on
deferred compensation     (1,781  )   (6,096  )    3,820      1,233   
plans
Total other expenses      94,257     80,921      289,322    271,103 
                                                                   
                                                                   
Gain on acquisition of
controlling interests      -             -             40,191        -
in joint ventures
Gain on sale of
properties, including      -             -             -             4,748
land
Gain on sale of
unconsolidated joint       -             -             -             1,136
venture interests
Loss on
discontinuation of         -             -             -             (29,791 )
hedging relationship
Equity in income
(loss) of joint           3,688      (556    )    4,686      (166    )
ventures
Income from continuing
operations before          31,794        13,566        114,943       8,590
income taxes
Income tax expense -      (334    )   (313    )    (992    )   (1,889  )
current
Income from continuing     31,460        13,253        113,951       6,701
operations
Income from
discontinued               343           1,098         1,262         3,196
operations
Gain on sale of
discontinued              -          -           32,541     -       
operations, net of tax
Net income                 31,803        14,351        147,754       9,897
Less income allocated
to noncontrolling          (1,100  )     (752    )     (3,009  )     (2,089  )
interests from
continuing operations
Less income, including
gain on sale,
allocated to
noncontrolling             -             (9      )     (670    )     (29     )
interests from
discontinued
operations
Less income allocated
to perpetual preferred     -             (1,750  )     (776    )     (5,250  )
units
Less write off of
original issuance
costs of redeemed         -          -           (2,075  )   -       
perpetual preferred
units
Net income
attributable to common   $ 30,703    $ 11,840     $ 141,224   $ 2,529   
shareholders
                                                                   
                                                                   
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          -             -             -             (2,692  )
activities
Reclassification of
net losses on cash         -             108           -             39,660
flow hedging
activities
Reclassification of
gain on
available-for-sale         -             -             -             (3,309  )
investment to
earnings, net of tax
Reclassification of
prior service cost on     7          -           23         -       
post retirement
obligations
Comprehensive income       31,810        14,459        147,777       43,556
Less income allocated
to noncontrolling          (1,100  )     (752    )     (3,009  )     (2,089  )
interests from
continuing operations
Less income, including
gain on sale,
allocated to
noncontrolling             -             (9      )     (670    )     (29     )
interests from
discontinued
operations
Less income allocated
to perpetual preferred     -             (1,750  )     (776    )     (5,250  )
units
Less write off of
original issuance
costs of redeemed         -          -           (2,075  )   -       
perpetual preferred
units
Comprehensive income
attributable to common   $ 30,710    $ 11,948     $ 141,247   $ 36,188  
shareholders
                                                                   
                                                                   
PER SHARE DATA
Net income
attributable to common   $ 0.36        $ 0.16        $ 1.69        $ 0.03
shareholders - basic
Net income
attributable to common     0.35          0.16          1.66          0.03
shareholders - diluted
Income (loss) from
continuing operations      0.35          0.14          1.29          (0.01   )
attributable to common
shareholders - basic
Income (loss) from
continuing operations      0.35          0.14          1.27          (0.01   )
attributable to common
shareholders - diluted
                                                                   
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   $ 30,703     $ 11,840   $ 141,224     $ 2,529
common shareholders ^ (a)
Real estate depreciation       51,477       42,095     152,246       129,778
from continuing operations
Real estate depreciation
and amortization from          221          1,191      844           3,564
discontinued operations
Adjustments for
unconsolidated joint           1,885        3,223      6,198         7,042
ventures
Income allocated to            702          458        2,504         1,494
noncontrolling interests
(Gain) on sale of
unconsolidated joint           (2,875 )     -          (2,875  )     -
venture property
(Gain) on acquisition of
controlling interests in       -            -          (40,191 )     -
joint ventures
(Gain) on sale of
discontinued operations,       -            -          (32,541 )     -
net of tax
(Gain) on sale of
unconsolidated joint          -         -         -          (1,136  )
venture interests
Funds from operations -      $ 82,113   $ 58,807   $ 227,409   $ 143,271 
diluted
                                                                   
PER SHARE DATA
Funds from operations -      $ 0.93       $ 0.77     $ 2.65        $ 1.89
diluted
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     203          197        203           197
(end of period) ^(b)
Total operating apartment
homes in operating             68,831       67,491     68,831        67,491
properties (end of period)
^(b)
Total operating apartment      54,934       50,921     53,870        50,895
homes (weighted average)
Total operating apartment
homes - excluding              54,461       48,627     53,204        48,601
discontinued operations
(weighted average)

^(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     5,359,707     5,203,675     5,068,560     4,751,654     4,758,397  
improvements
                   6,288,996        6,097,585        5,937,524        5,519,670        5,524,699
Accumulated       (1,542,530 )   (1,505,862 )   (1,458,451 )   (1,432,799 )   (1,421,867 )
depreciation
Net operating
real estate        4,746,466        4,591,723        4,479,073        4,086,871        4,102,832
assets
Properties
under              280,948          297,712          301,282          299,870          274,201
development,
including land
Investments in     46,566           47,776           49,436           44,844           37,033
joint ventures
Properties        6,373         -             -             11,131        -          
held for sale
Total real         5,080,353        4,937,211        4,829,791        4,442,716        4,414,066
estate assets
Accounts
receivable -       28,874           29,940           29,742           31,035           31,395
affiliates
Other assets,      96,401           88,002           89,706           88,089           87,657
net ^(a)
Cash and cash      5,590            52,126           49,702           55,159           56,099
equivalents
Restricted        6,742         5,295         5,074         5,076         5,357      
cash
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        118,879          87,041           105,370          93,747           97,613
accrued
expenses
Accrued real       43,757           31,607           17,991           21,883           37,721
estate taxes
Distributions      49,940           49,135           47,594           39,364           39,319
payable
Other
liabilities ^     78,551        83,471        90,423        109,276       111,043    
(b)
Total              2,684,852        2,647,666        2,692,484        2,696,382        2,718,800
liabilities
                                                                                     
Commitments
and
contingencies
                                                                                     
Perpetual
preferred          -                -                -                97,925           97,925
units
                                                                                     
Equity
Common shares
of beneficial      959              945              919              845              839
interest
Additional
paid-in            3,580,528        3,501,354        3,327,961        2,901,024        2,861,139
capital
Distributions
in excess of
net income         (692,235   )     (674,221   )     (648,074   )     (690,466   )     (700,897   )
attributable
to common
shareholders
Treasury
shares, at         (425,756   )     (430,958   )     (437,215   )     (452,003   )     (452,244   )
cost
Accumulated
other
comprehensive     (660       )   (667       )   (675       )   (683       )   201        
income (loss)
^(c)
Total common       2,462,836        2,396,453        2,242,916        1,758,717        1,709,038
equity
Noncontrolling    70,272        68,455        68,615        69,051        68,811     
interests
Total equity      2,533,108     2,464,908     2,311,531     1,827,768     1,777,849  
Total
liabilities      $ 5,217,960    $ 5,112,574    $ 5,004,015    $ 4,622,075    $ 4,594,574  
and equity
                                                                                     
                                                                                     
                                                                                     
(a) Includes:
net deferred     $ 13,695         $ 14,432         $ 15,267         $ 16,102         $ 16,868
charges of:
                                                                                     
(b) Includes:
deferred         $ 1,746          $ 2,012          $ 2,337          $ 2,140          $ 2,213
revenues of:
distributions
in excess of
investments in   $ 16,708         $ 16,499         $ 16,298         $ 30,596         $ 31,799
joint ventures
of:
fair value
adjustment of    $ 185            $ 5,918          $ 11,574         $ 16,486         $ 22,192
derivative
instruments:
                                                                                     
(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     $ 30,703      $ 11,840         $ 141,224     $ 2,529
common
shareholders
^(a)
Real estate
depreciation          51,477        42,095           152,246       129,778
from continuing
operations
Real estate
depreciation and
amortization          221           1,191            844           3,564
from
discontinued
operations
Adjustments for
unconsolidated        1,885         3,223            6,198         7,042
joint ventures
Income allocated
to                    702           458              2,504         1,494
noncontrolling
interests
(Gain) on sale
of
unconsolidated        (2,875  )     -                (2,875  )     -
joint venture
property
(Gain) on
acquisition of
controlling           -             -                (40,191 )     -
interests in
joint ventures
(Gain) on sale
of discontinued       -             -                (32,541 )     -
operations, net
of tax
(Gain) on sale
of
unconsolidated       -          -              -          (1,136  )
joint venture
interests
Funds from
operations -        $ 82,113    $ 58,807        $ 227,409   $ 143,271 
diluted
                                                                             
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     $ 0.35        $ 0.16           $ 1.66        $ 0.03
common
shareholders -
diluted
FFO per common      $ 0.93        $ 0.77           $ 2.65        $ 1.89
share - diluted
                                                                             
                                                                             
^(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     $ 0.42        $ 0.46           $ 2.06        $ 2.10
common
shareholders per
share - diluted
Expected real
estate
depreciation          0.56          0.56             2.33          2.33
from continuing
operations
Expected real
estate
depreciation and
amortization          0.00          0.00             0.01          0.01
from
discontinued
operations
Expected
adjustments for       (0.05   )     (0.05  )         0.02          0.02
unconsolidated
joint ventures
Expected income
allocated to          0.01          0.01             0.04          0.04
noncontrolling
interests
(Gain) on sale
of
unconsolidated        0.00          0.00             (0.03   )     (0.03   )
joint venture
property
Realized (gain)
on acquisition
of controlling        0.00          0.00             (0.46   )     (0.46   )
interests in
joint ventures
Realized (gain)
on sale of
discontinued         0.00       0.00           (0.38   )   (0.38   )
operations, net
of tax
Expected FFO per    $ 0.94        $ 0.98           $ 3.59        $ 3.63
share - diluted
                                                                             
                                                                             
                                                                             
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     $ 30,703      $ 11,840         $ 141,224     $ 2,529
common
shareholders
Less: Fee and
asset management      (3,041  )     (2,646 )         (9,572  )     (6,955  )
income
Less: Interest
and other             (3      )     108              750           (4,749  )
(income) loss
Less: Income
(loss) on
deferred              1,781         6,096            (3,820  )     (1,233  )
compensation
plans
Plus: Property
management            5,509         5,050            15,644        15,478
expense
Plus: Fee and
asset management      1,864         1,330            5,051         4,220
expense
Plus: General
and                   9,303         8,572            27,712        26,392
administrative
expense
Plus: Interest        25,865        27,354           78,795        85,472
expense
Plus:
Depreciation and      52,588        43,367           155,579       133,547
amortization
Plus:
Amortization of       909           1,344            2,721         4,761
deferred
financing costs
Plus: Expense
(benefit) on
deferred              (1,781  )     (6,096 )         3,820         1,233
compensation
plans
Less: Gain on
acquisition of
controlling           -             -                (40,191 )     -
interests in
joint ventures
Less: Gain on
sale of               -             -                -             (4,748  )
properties,
including land
Less: Gain on
sale of
unconsolidated        -             -                -             (1,136  )
joint venture
interests
Plus: Loss on
discontinuation       -             -                -             29,791
of hedging
relationship
Less: Equity in
income (loss) of      (3,688  )     556              (4,686  )     166
joint ventures
Plus: Income tax
expense -             334           313              992           1,889
current
Less: Income
from                  (343    )     (1,098 )         (1,262  )     (3,196  )
discontinued
operations
Less: Gain on
sale of
discontinued          -             -                (32,541 )     -
operations, net
of tax
Plus: Income
allocated to
noncontrolling        1,100         752              3,009         2,089
interests from
continuing
operations
Plus: Income,
including gain
on sale,
allocated to          -             9                670           29
noncontrolling
interests from
discontinued
operations
Plus: Income
allocated to          -             1,750            776           5,250
perpetual
preferred units
Plus: Write off
of original
issuance costs       -          -              2,075      -       
of redeemed
perpetual
preferred units
Net Operating       $ 121,100     $ 98,601         $ 346,746     $ 290,829
Income (NOI)
                                                                             
"Same Property"     $ 105,939     $ 95,735         $ 309,612     $ 282,528
Communities
Non-"Same
Property"             13,300        2,567            33,127        7,839
Communities
Development and
Lease-Up              1,148         -                1,476         -
Communities
Other                713        299            2,531      462     
Net Operating       $ 121,100     $ 98,601         $ 346,746     $ 290,829
Income (NOI)
                                                                             
                                                                             
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     $ 30,703      $ 11,840         $ 141,224     $ 2,529
common
shareholders
Plus: Interest        25,865        27,354           78,795        85,472
expense
Plus:
Amortization of       909           1,344            2,721         4,761
deferred
financing costs
Plus:
Depreciation and      52,588        43,367           155,579       133,547
amortization
Plus: Income
allocated to          -             1,750            776           5,250
perpetual
preferred units
Plus: Write off
of original
issuance costs        -             -                2,075         -
of redeemed
perpetual
preferred units
Plus: Income,
including gain
on sale,
allocated to          -             9                670           29
noncontrolling
interests from
discontinued
operations
Plus: Income
allocated to
noncontrolling        1,100         752              3,009         2,089
interests from
continuing
operations
Plus: Income tax
expense -             334           313              992           1,889
current
Plus: Real
estate
depreciation and
amortization          221           1,191            844           3,564
from
discontinued
operations
Less: Gain on
sale of               -             -                -             (4,748  )
properties,
including land
Less: Gain on
sale of
unconsolidated        -             -                -             (1,136  )
joint venture
interests
Less: Gain on
acquisition of
controlling           -             -                (40,191 )     -
interests in
joint ventures
Less: Equity in
income (loss) of      (3,688  )     556              (4,686  )     166
joint ventures
Less: Gain on
sale of
discontinued          -             -                (32,541 )     -
operations, net
of tax
Plus: Loss on
discontinuation      -          -              -          29,791  
of hedging
relationship
EBITDA              $ 108,032     $ 88,476         $ 309,267     $ 263,203

Contact:

Camden Property Trust
Kim Callahan, 713-354-2549
 
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