Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

Camden Property Trust Announces 2012 Operating Results, 12.5% Dividend Increase and 2013 Financial Outlook



  Camden Property Trust Announces 2012 Operating Results, 12.5% Dividend
  Increase and 2013 Financial Outlook

Business Wire

HOUSTON -- January 31, 2013

Camden Property Trust (NYSE:CPT) today announced operating results for the
three and twelve months ended December 31, 2012.

Funds from Operations (“FFO”)

FFO for the fourth quarter of 2012 totaled $0.97 per diluted share or $85.9
million, as compared to $0.84 per diluted share or $64.3 million for the same
period in 2011. FFO for the twelve months ended December 31, 2012 totaled
$3.62 per diluted share or $313.3 million, as compared to $2.73 per diluted
share or $207.5 million for the same period in 2011.

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. FFO for the twelve months ended
December 31, 2011 included: a $0.40 per diluted share charge 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 gain on
sale of an available-for-sale investment.

Net Income Attributable to Common Shareholders (“EPS”)

The Company reported EPS of $142.2 million or $1.60 per diluted share for the
fourth quarter of 2012, as compared to $46.8 million or $0.62 per diluted
share for the same period in 2011. 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. EPS for the three months ended December 31, 2011 included a $24.6
million or $0.33 per diluted share gain on sale of discontinued operations,
and a $6.4 million or $0.09 per diluted share gain on sale of unconsolidated
joint venture properties.

For the twelve months ended December 31, 2012, Camden reported net income
attributable to common shareholders of $283.4 million or $3.30 per diluted
share, as compared to $49.4 million or $0.66 per diluted share for the same
period in 2011. 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. EPS for the twelve months ended
December 31, 2011 included: a $24.6 million or $0.34 per diluted share gain on
sale of discontinued operations; a $6.4 million or $0.09 per diluted share
gain on sale of unconsolidated joint venture properties; a $0.41 per diluted
share charge related to a $29.8 million loss on discontinuation of a hedging
relationship of an interest rate swap and $0.5 million write-off of
unamortized loan costs related to the payoff of a term loan; a $4.7 million or
$0.06 per diluted share gain on sale of undeveloped land; a net $3.3 million
or $0.05 per diluted share gain on sale of an available-for-sale investment;
and a $1.1 million or $0.02 per diluted share gain on sale of unconsolidated
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 44,774 apartment homes included in consolidated same-property results,
fourth quarter 2012 same-property net operating income (“NOI”) increased 8.0%
compared to the fourth quarter of 2011, with revenues increasing 6.6% and
expenses increasing 4.1%. On a sequential basis, fourth quarter 2012
same-property NOI increased 1.7% compared to the third quarter of 2012, with
revenues up slightly and expenses declining 2.8% compared to the prior
quarter. On a full-year basis, 2012 same-property NOI increased 9.2%, with
revenues increasing 6.5% and expenses increasing 2.2% compared to the same
period in 2011. Same-property physical occupancy levels for the combined
portfolio averaged 95.1% during the fourth quarter of 2012, compared to 94.6%
in the fourth quarter of 2011 and 95.6% in the third 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 to net
operating income and same-property net operating income is included in the
financial tables accompanying this press release.

Acquisition Activity

During the fourth quarter, Camden acquired three communities with 839
apartment homes for a total of $145.0 million: Camden Montierra, a 249-home
apartment community in Scottsdale, AZ; Camden San Marcos, a 320-home apartment
community in Scottsdale, AZ; and Camden Belleview Station, a 270-home
apartment community in Denver, CO. The Company also purchased the remaining
50% ownership interest in an unconsolidated joint venture for approximately
$15.9 million and assumed approximately $26.2 million in mortgage debt. The
Company now owns 100% of Camden Denver West, a 320-home apartment community
located in Denver, CO.

In addition, Camden acquired 2.4 acres of land in Plantation, FL and 3.5 acres
of land in Charlotte, NC during the fourth quarter for future development of
two multifamily communities.

Disposition Activity

The Company disposed of eight wholly-owned communities with 2,180 apartment
homes during the quarter for a total of $177.6 million. The eight communities
had an average age of 19 years and were located in Houston, Austin, Dallas,
Atlanta, Charlotte and Philadelphia. Camden also sold six joint venture
communities with 2,153 apartment homes during the quarter for a total of
$178.5 million. The six joint venture communities had an average age of 25
years and were located in Atlanta, St. Louis and Kansas City, MO.

Subsequent to quarter-end, the Company disposed of an additional wholly-owned
community. Camden Live Oaks, a 770-home apartment community in Tampa, FL with
an age of 23 years was sold for approximately $63.4 million.

Development Activity

Lease-up was completed during the quarter at Camden Westchase Park, a 348-home
project in Tampa, FL which is currently 97% occupied. Leasing continued at
Camden Royal Oaks II, a 104-home project in Houston, TX, which is currently
81% leased; and Camden Town Square, a 438-home project in Orlando, FL which
completed construction during the quarter and is currently 72% leased.

Construction began during the quarter at three communities: 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; and
Camden Paces in Atlanta, GA, a $110 million project with 379 apartment homes.

Construction continued at four 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; Camden Lamar Heights in Austin, TX, a $47 million
project with 314 apartment homes; and Camden Flatirons in Denver, CO, a $78
million project with 424 apartment homes.

Lease-up was completed during the quarter at one joint venture community,
Camden Amber Oaks II in Austin, TX, a 244-home project which is currently 95%
occupied. Construction continued at Camden South Capitol in Washington, DC, an
$88 million joint venture project with 276 apartment homes, and construction
began at Camden Waterford Lakes in Orlando, FL, a $40 million joint venture
project with 300 apartment homes.

Quarterly Dividend Declaration

Camden’s Board of Trust Managers declared a first quarter 2013 dividend of
$0.63 per common share, which is a 12.5% increase over the Company’s prior
quarterly dividend of $0.56 per share. The dividend is payable on April 17,
2013 to holders of record as of March 28, 2013. 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 2013 based on its current and
expected views of the apartment market and general economic conditions.
Full-year 2013 FFO is expected to be $3.85 to $4.05 per diluted share, and
full-year 2013 EPS is expected to be $1.38 to $1.58 per diluted share. First
quarter 2013 earnings guidance is $0.92 to $0.96 per diluted share for FFO and
$0.28 to $0.32 per diluted share for EPS. Guidance for EPS excludes gains on
real estate transactions. Camden intends to update its earnings guidance to
the market on a quarterly basis.

The Company’s initial 2013 earnings guidance is based on projections of
same-property revenue growth between 4.75% and 6.25%, expense growth between
3.2% and 4.0%, and NOI growth between 5.5% and 7.5%. Additional information on
the Company’s 2013 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, February 1, 2013 at 11:00
a.m. Central Time to review its fourth quarter and full-year 2012 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: 6680150, 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 192
properties containing 65,005 apartment homes across the United States. Upon
completion of nine properties under development, the Company’s portfolio will
increase to 67,850 apartment homes in 201 properties. Camden was recently
named by FORTUNE® Magazine for the sixth consecutive year as one of the “100
Best Companies to Work For” in America, ranking #10.

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               2012          2011         2012         2011
Property revenues                                                  
Rental revenues              $165,464      $137,113     $626,127     $533,937
Other property revenues      25,968        21,775       101,781      87,137
Total property revenues      191,432       158,888      727,908      621,074
                                                                      
Property expenses
Property operating and       50,226        42,722       196,811      175,000
maintenance
Real estate taxes            18,621        15,809       72,858       65,128
Total property expenses      68,847        58,531       269,669      240,128
                                                                      
Non-property income
Fee and asset management     2,773         3,018        12,345       9,973
Interest and other income    40            (100)        (710)        4,649
(loss)
Income on deferred           952           5,540        4,772        6,773
compensation plans
Total non-property income    3,765         8,458        16,407       21,395
                                                                      
Other expenses
Property management          6,152         5,208        21,796       20,686
Fee and asset management     1,580         1,715        6,631        5,935
General and administrative   9,816         9,064        37,528       35,456
Interest                     25,487        26,942       104,282      112,414
Depreciation and             52,501        42,428       203,077      171,127
amortization
Amortization of deferred     887           1,116        3,608        5,877
financing costs
Expense on deferred          952           5,540        4,772        6,773
compensation plans
Total other expenses         97,375        92,013       381,694      358,268
                                                                      
                                                                      
Gain on acquisition of
controlling interests in     17,227        -            57,418       -
joint ventures
Gain on sale of              -             -            -            4,748
properties, including land
Gain on sale of
unconsolidated joint         -             -            -            1,136
venture interests
Loss on discontinuation of   -             -            -            (29,791)
hedging relationship
Equity in income of joint    15,489        5,845        20,175       5,679
ventures
Income from continuing
operations before income     61,691        22,647       170,545      25,845
taxes
Income tax expense -         (216)         (331)        (1,208)      (2,220)
current
Income from continuing       61,475        22,316       169,337      23,625
operations
Income from discontinued     2,144         3,127        9,495        11,715
operations
Gain on sale of
discontinued operations,     82,527        24,621       115,068      24,621
net of tax
Net income                   146,146       50,064       293,900      59,961
Less income allocated to
noncontrolling interests     (1,893)       (1,431)      (4,821)      (3,453)
from continuing operations
Less income, including
gain on sale, allocated to
noncontrolling interests     (2,087)       (33)         (2,838)      (129)
from discontinued
operations
Less income allocated to     -             (1,750)      (776)        (7,000)
perpetual preferred units
Less write off of original
issuance costs of redeemed   -             -            (2,075)      -
perpetual preferred units
Net income attributable to   $142,166      $46,850      $283,390     $49,379
common shareholders
                                                                      
                                                                      
CONDENSED CONSOLIDATED
STATEMENTS OF
COMPREHENSIVE INCOME
Net income                   $146,146      $50,064      $293,900     $59,961
Other comprehensive income
Unrealized loss on cash      -             -            -            (2,692)
flow hedging activities
Reclassification of net
(gain) loss on cash flow     -             (3)          -            39,657
hedging activities
Reclassification of (gain)
loss on available-for-sale   -             3            -            (3,306)
investment to earnings,
net of tax
Reclassification of prior
service cost and net loss    7             -            30           -
on post retirement
obligation
Unrealized loss and
unamortized prior service    (409)         (884)        (409)        (884)
cost on postretirement
obligation
Comprehensive income         145,744       49,180       293,521      92,736
Less income allocated to
noncontrolling interests     (1,893)       (1,431)      (4,821)      (3,453)
from continuing operations
Less income, including
gain on sale, allocated to
noncontrolling interests     (2,087)       (33)         (2,838)      (129)
from discontinued
operations
Less income allocated to     -             (1,750)      (776)        (7,000)
perpetual preferred units
Less write off of original
issuance costs of redeemed   -             -            (2,075)      -
perpetual preferred units
Comprehensive income
attributable to common       $141,764      $45,966      $283,011     $82,154
shareholders
                                                                      
                                                                      
PER SHARE DATA
Net income attributable to
common shareholders -        $1.63         $0.63        $3.35        $0.67
basic
Net income attributable to
common shareholders -        1.60          0.62         3.30         0.66
diluted
Income from continuing
operations attributable to   0.67          0.25         1.90         0.17
common shareholders -
basic
Income from continuing
operations attributable to   0.66          0.25         1.88         0.17
common shareholders -
diluted
                                                                      
Weighted average number of
common and common
equivalent shares
outstanding:
Basic                        86,298        73,510       83,772       72,756
Diluted                      88,020        74,428       85,556       73,462
                                                                      
                                                                      
                                                                      
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     2012           2011          2012          2011
                                                                      
Net income
attributable to common    $142,166       $46,850       $283,390      $49,379
shareholders ^ (a)
Real estate
depreciation from         51,399         41,219        198,642       166,149
continuing operations
Real estate
depreciation and
amortization from         948            2,626         6,795         11,038
discontinued
operations
Adjustments for
unconsolidated joint      1,741          3,492         7,939         10,534
ventures
Income allocated to
noncontrolling            3,971          1,092         6,475         2,586
interests
(Gain) on sale of
unconsolidated joint      (14,543)       (6,394)       (17,418)      (7,530)
venture properties
(Gain) on acquisition
of controlling            (17,227)       -             (57,418)      -
interests in joint
ventures
(Gain) on sale of
discontinued              (82,527)       (24,621)      (115,068)     (24,621)
operations, net of tax
Funds from operations     $85,928        $64,264       $313,337      $207,535
- diluted
                                                                      
PER SHARE DATA
Funds from operations     $0.97          $0.84         $3.62         $2.73
- diluted
Cash distributions        0.56           0.49          2.24          1.96
                                                                      
Weighted average
number of common and
common equivalent
shares outstanding:
FFO - diluted             88,991         76,649        86,619        75,928
                                                                      
PROPERTY DATA
Total operating
properties (end of        193            196           193           196
period) ^(b)
Total operating
apartment homes in        65,775         66,997        65,775        66,997
operating properties
(end of period) ^(b)
Total operating
apartment homes           55,163         50,934        54,194        50,905
(weighted average)
Total operating
apartment homes -
excluding discontinued    53,052         46,294        51,308        46,167
operations (weighted
average)
                                                                      
                                                                      
^(a) Includes a $29.8 million charge related to a loss on the discontinuation
of a hedging relationship for the twelve months ended December 31, 2011.
^(b) Includes joint ventures and properties held for sale.
 

 
CAMDEN           BALANCE SHEETS
                 (In thousands)
 
                                                                        
(Unaudited)      Dec 31,       Sept 30,      Jun 30,       Mar 31,       Dec 31,
                 2012          2012          2012          2012          2011
ASSETS
Real estate
assets, at
cost
Land             $949,777      $929,289      $893,910      $868,964      $768,016
Buildings and    5,389,674     5,359,707     5,203,675     5,068,560     4,751,654
improvements
                 6,339,451     6,288,996     6,097,585     5,937,524     5,519,670
Accumulated      (1,518,896)   (1,542,530)   (1,505,862)   (1,458,451)   (1,432,799)
depreciation
Net operating
real estate      4,820,555     4,746,466     4,591,723     4,479,073     4,086,871
assets
Properties
under            334,463       280,948       297,712       301,282       299,870
development,
including land
Investments in   45,092        46,566        47,776        49,436        44,844
joint ventures
Properties       30,517        6,373         -             -             11,131
held for sale
Total real       5,230,627     5,080,353     4,937,211     4,829,791     4,442,716
estate assets
Accounts
receivable -     33,625        28,874        29,940        29,742        31,035
affiliates
Other assets,    88,260        96,401        88,002        89,706        88,089
net ^(a)
Cash and cash    26,669        5,590         52,126        49,702        55,159
equivalents
Restricted       5,991         6,742         5,295         5,074         5,076
cash
Total assets     $5,385,172    $5,217,960    $5,112,574    $5,004,015    $4,622,075
                                                                          
                                                                          
                                                                          
LIABILITIES
AND EQUITY
Liabilities
Notes payable
Unsecured        $1,538,212    $1,415,354    $1,381,152    $1,380,952    $1,380,755
Secured          972,256       978,371       1,015,260     1,050,154     1,051,357
Accounts
payable and      101,896       118,879       87,041        105,370       93,747
accrued
expenses
Accrued real     28,452        43,757        31,607        17,991        21,883
estate taxes
Distributions    49,969        49,940        49,135        47,594        39,364
payable
Other
liabilities ^    67,679        78,551        83,471        90,423        109,276
(b)
Total            2,758,464     2,684,852     2,647,666     2,692,484     2,696,382
liabilities
                                                                          
Commitments
and
contingencies
                                                                          
Perpetual
preferred        -             -             -             -             97,925
units
                                                                          
Equity
Common shares
of beneficial    962           959           945           919           845
interest
Additional
paid-in          3,587,505     3,580,528     3,501,354     3,327,961     2,901,024
capital
Distributions
in excess of
net income       (598,951)     (692,235)     (674,221)     (648,074)     (690,466)
attributable
to common
shareholders
Treasury
shares, at       (425,355)     (425,756)     (430,958)     (437,215)     (452,003)
cost
Accumulated
other
comprehensive    (1,062)       (660)         (667)         (675)         (683)
income (loss)
^(c)
Total common     2,563,099     2,462,836     2,396,453     2,242,916     1,758,717
equity
Noncontrolling   63,609        70,272        68,455        68,615        69,051
interests
Total equity     2,626,708     2,533,108     2,464,908     2,311,531     1,827,768
Total
liabilities      $5,385,172    $5,217,960    $5,112,574    $5,004,015    $4,622,075
and equity
                                                                          
                                                                          
                                                                          
(a) Includes:
net deferred     $15,635       $13,695       $14,432       $15,267       $16,102
charges of:
                                                                          
(b) Includes:
deferred         $2,521        $1,746        $2,012        $2,337        $2,140
revenues of:
distributions
in excess of
investments in   $9,509        $16,708       $16,499       $16,298       $30,596
joint ventures
of:
fair value
adjustment of    ($1)          $185          $5,918        $11,574       $16,486
derivative
instruments:
                                                                          
(c) Represents the unrealized (loss)/gain and unamortized prior service costs on
post retirement obligations.
 

 
CAMDEN                                       2013 Financial Outlook
                                             as of January 31, 2013
 
                                                           
(Unaudited)
                                                                 
2012 Reported FFO, Adjusted for Year End Shares Outstanding
($'s and shares in thousands)
                                             Total              Per Share
2012 Reported FFO                            $313,337           $3.62
                                                                 
2012 Fully Diluted Shares Outstanding                           86,619
- FFO
                                                                 
December 31, 2012 Fully Diluted Shares                          89,039
Outstanding - FFO
                                                                 
2012 FFO adjusted for December 31,
2012 Fully Diluted Shares Outstanding                           $3.52
- FFO
                                                                 
2013 Financial Outlook
                                                                 
Earnings Guidance - Per Diluted Share
Expected net income attributable to
common shareholders per share -                                 $1.38 - $1.58
diluted
Expected real estate depreciation                               2.33
Expected adjustments for                                        0.07
unconsolidated joint ventures
Expected income allocated to                                    0.07
noncontrolling interests
Expected FFO per share - diluted                                $3.85 - $4.05
                                                                 
"Same Property" Communities
Number of Units                                                 44,395
2012 Base Net Operating Income                                  $398 million
Total Revenue Growth                                            4.75% - 6.25%
Total Expense Growth                                            3.20% - 4.00%
Net Operating Income Growth                                     5.50% - 7.50%
Impact from 1.0% change in NOI Growth
is approximately $0.045 / share
                                                                 
Impact from 2013 Revenue Enhancing
Repositions included in Same Store Net                          0.50%
Operating Income Guidance ^(a)
                                                                 
Physical Occupancy                                              95%
                                                                 
Capitalized Expenditures
Recurring                                                       $60 - $64
                                                                million
Revenue Enhancing Repositions ^(a)                              $50 - $60
                                                                million
                                                                 
Acquisitions/Dispositions
Acquisition Volume (consolidated on                             $200 - $400
balance sheet)                                                  million
Disposition Volume                                              $200 - $400
                                                                million
                                                                 
Development
Development Starts (consolidated on                             $250 - $400
balance sheet)                                                  million
Development Starts (joint venture)                              $0 - $50
                                                                million
Development Spend (consolidated on                              $200 - $250
balance sheet)                                                  million
                                                                 
                                                                 
Non-Property Income
Non-Property Income, Net                                        $5 - $6
                                                                million
Includes: Fee and asset management
income, net of expenses and
Interest and other income
                                                                 
Corporate Expenses
General and administrative expense                              $38 - $40
^(b)                                                            million
Property management expense                                     $21 - $23
                                                                million
                                                                 
Capital
Expected Capital Transactions                                   $250 - $350
                                                                million
Expensed Interest                                               $98 - $102
                                                                million
Capitalized Interest                                            $14 - $16
                                                                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,
                       2012         2011               2012          2011
Net income
attributable to        $142,166     $46,850            $283,390      $49,379
common shareholders
^(a)
Real estate
depreciation from      51,399       41,219             198,642       166,149
continuing
operations
Real estate
depreciation and
amortization from      948          2,626              6,795         11,038
discontinued
operations
Adjustments for
unconsolidated         1,741        3,492              7,939         10,534
joint ventures
Income allocated to
noncontrolling         3,971        1,092              6,475         2,586
interests
(Gain) on sale of
unconsolidated         (14,543)     (6,394)            (17,418)      (7,530)
joint venture
properties
(Gain) on
acquisition of
controlling            (17,227)     -                  (57,418)      -
interests in joint
ventures
(Gain) on sale of
discontinued           (82,527)     (24,621)           (115,068)     (24,621)
operations, net of
tax
Funds from
operations -           $85,928      $64,264            $313,337      $207,535
diluted
                                                                      
Weighted average
number of common
and common
equivalent shares
outstanding:
EPS diluted            88,020       74,428             85,556        73,462
FFO diluted            88,991       76,649             86,619        75,928
                                                                      
Net income
attributable to        $1.60        $0.62              $3.30         $0.66
common shareholders
- diluted
FFO per common         $0.97        $0.84              $3.62         $2.73
share - diluted
                                                                      
                                                                      
^(a) Includes a $29.8 million charge related to a loss on the discontinuation
of a hedging relationship for the twelve months ended December 31, 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:
                                                                      
                       1Q13 Range                      2013 Range
                       Low          High               Low           High
                                                                      
Expected net income
attributable to        $0.28        $0.32              $1.38         $1.58
common shareholders
per share - diluted
Expected real          0.60         0.60               2.33          2.33
estate depreciation
Expected
adjustments for        0.02         0.02               0.07          0.07
unconsolidated
joint ventures
Expected income
allocated to           0.02         0.02               0.07          0.07
noncontrolling
interests
Expected FFO per       $0.92        $0.96              $3.85         $4.05
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              Twelve Months Ended
                       December 31,                    December 31,
                       2012         2011               2012          2011
Net income
attributable to        $142,166     $46,850            $283,390      $49,379
common shareholders
Less: Fee and asset    (2,773)      (3,018)            (12,345)      (9,973)
management income
Less: Interest and     (40)         100                710           (4,649)
other (income) loss
Less: Income on
deferred               (952)        (5,540)            (4,772)       (6,773)
compensation plans
Plus: Property         6,152        5,208              21,796        20,686
management expense
Plus: Fee and asset    1,580        1,715              6,631         5,935
management expense
Plus: General and
administrative         9,816        9,064              37,528        35,456
expense
Plus: Interest         25,487       26,942             104,282       112,414
expense
Plus: Depreciation     52,501       42,428             203,077       171,127
and amortization
Plus: Amortization
of deferred            887          1,116              3,608         5,877
financing costs
Plus: Expense on
deferred               952          5,540              4,772         6,773
compensation plans
Less: Gain on
acquisition of
controlling            (17,227)     -                  (57,418)      -
interests in joint
ventures
Less: Gain on sale
of properties,         -            -                  -             (4,748)
including land
Less: Gain on sale
of unconsolidated      -            -                  -             (1,136)
joint venture
interests
Plus: Loss on
discontinuation of     -            -                  -             29,791
hedging
relationship
Less: Equity in
income of joint        (15,489)     (5,845)            (20,175)      (5,679)
ventures
Plus: Income tax       216          331                1,208         2,220
expense - current
Less: Income from
discontinued           (2,144)      (3,127)            (9,495)       (11,715)
operations
Less: Gain on sale
of discontinued        (82,527)     (24,621)           (115,068)     (24,621)
operations, net of
tax
Plus: Income
allocated to
noncontrolling         1,893        1,431              4,821         3,453
interests from
continuing
operations
Plus: Income,
including gain on
sale, allocated to
noncontrolling         2,087        33                 2,838         129
interests from
discontinued
operations
Plus: Income
allocated to           -            1,750              776           7,000
perpetual preferred
units
Plus: Write off of
original issuance
costs of redeemed      -            -                  2,075         -
perpetual preferred
units
Net Operating          $122,585     $100,357           $458,239      $380,946
Income (NOI)
                                                                      
"Same Property"        $103,930     $96,193            $402,513      $368,569
Communities
Non-"Same Property"    17,449       3,652              51,525        11,491
Communities
Development and
Lease-Up               598          1                  1,126         1
Communities
Other                  608          511                3,075         885
Net Operating          $122,585     $100,357           $458,239      $380,946
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              Twelve Months Ended
                       December 31,                    December 31,
                       2012         2011               2012          2011
Net income
attributable to        $142,166     $46,850            $283,390      $49,379
common shareholders
Plus: Interest         25,487       26,942             104,282       112,414
expense
Plus: Amortization
of deferred            887          1,116              3,608         5,877
financing costs
Plus: Depreciation     52,501       42,428             203,077       171,127
and amortization
Plus: Income
allocated to           -            1,750              776           7,000
perpetual preferred
units
Plus: Write off of
original issuance
costs of redeemed      -            -                  2,075         -
perpetual preferred
units
Plus: Income,
including gain on
sale, allocated to
noncontrolling         2,087        33                 2,838         129
interests from
discontinued
operations
Plus: Income
allocated to
noncontrolling         1,893        1,431              4,821         3,453
interests from
continuing
operations
Plus: Income tax       216          331                1,208         2,220
expense - current
Plus: Real estate
depreciation and
amortization from      948          2,626              6,795         11,038
discontinued
operations
Less: Gain on sale
of properties,         -            -                  -             (4,748)
including land
Less: Gain on sale
of unconsolidated      -            -                  -             (1,136)
joint venture
interests
Less: Gain on
acquisition of
controlling            (17,227)     -                  (57,418)      -
interests in joint
ventures
Less: Equity in
income of joint        (15,489)     (5,845)            (20,175)      (5,679)
ventures
Less: Gain on sale
of discontinued        (82,527)     (24,621)           (115,068)     (24,621)
operations, net of
tax
Plus: Loss on
discontinuation of     -            -                  -             29,791
hedging
relationship
EBITDA                 $110,942     $93,041            $420,209      $356,244
 

Contact:

Camden Property Trust
Kim Callahan, 713-354-2549
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement