Camden Property Trust Announces First Quarter 2013 Operating Results

  Camden Property Trust Announces First Quarter 2013 Operating Results

Business Wire

HOUSTON -- May 2, 2013

Camden Property Trust (NYSE: CPT) today announced operating results for the
three months ended March 31, 2013.

Funds from Operations (“FFO”)

FFO for the first quarter of 2013 totaled $0.97 per diluted share or $86.6
million, as compared to $0.83 per diluted share or $68.6 million for the same
period in 2012. FFO for the three months ended March 31, 2013 included a $0.7
million or $0.01 per diluted share gain on sale of undeveloped land. FFO for
the three months ended March 31, 2012 included a $2.1 million or $0.03 per
diluted share charge related to the redemption of perpetual preferred
operating partnership units.

Net Income Attributable to Common Shareholders (“EPS”)

The Company reported EPS of $63.5 million or $0.72 per diluted share for the
first quarter of 2013, as compared to $88.8 million or $1.07 per diluted share
for the same period in 2012. EPS for the three months ended March 31, 2013
included a $31.8 million or $0.36 per diluted share gain on sale of
discontinued operations, and a $0.7 million or $0.01 per diluted share gain on
sale of undeveloped land. EPS for the three months ended March 31, 2012
included: a $40.2 million or $0.49 per diluted share gain on acquisition of
controlling interests in joint ventures; a $32.5 million or $0.39 per diluted
share gain on sale of discontinued operations; and, a $2.1 million or $0.03
per diluted share charge related to the redemption of perpetual preferred
operating partnership units.

A reconciliation of net income attributable to common shareholders to FFO is
included in the financial tables accompanying this press release.

Same Property Results

For the 43,869 apartment homes included in consolidated same property results,
first quarter 2013 same property net operating income (“NOI”) increased 6.7%
compared to the first quarter of 2012, with revenues increasing 5.9% and
expenses increasing 4.5%. On a sequential basis, first quarter 2013 same
property NOI declined 0.3% compared to the fourth quarter of 2012, with
revenues increasing 0.8% and expenses increasing 2.8% compared to the prior
quarter. Same property physical occupancy levels for the portfolio averaged
95.2% during the first quarter of 2013, compared to 95.1% in the fourth
quarter of 2012 and 94.9% in the first quarter of 2012.

The Company defines same property communities as communities owned and
stabilized as of January 1, 2012, excluding properties held for sale. 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

Subsequent to quarter-end, the Company acquired Camden Post Oak, a 356-home
apartment community located in Houston, TX.

Disposition Activity

During the first quarter, the Company disposed of Camden Live Oaks, a 770-home
apartment community in Tampa, FL, for approximately $63.4 million. The Company
also sold 3.7 acres of undeveloped land adjacent to current development
communities in Houston, TX and Atlanta, GA during the quarter for
approximately $6.6 million, recognizing a gain of $0.7 million.

Subsequent to quarter-end, the Company sold Camden Reserve, a 526-home
apartment community in Orlando, FL, for approximately $40.5 million.

Development Activity

Leasing continued during the quarter at Camden Royal Oaks II, a 104-home
project in Houston, TX, which is currently 93% leased; and Camden Town Square,
a 438-home project in Orlando, FL which is currently 84% leased. Leasing began
during the quarter at Camden City Centre II, a 268-home project in Houston,
TX, which is currently 46% leased and expected to complete construction during
the second quarter.

Construction continued at six additional wholly-owned development communities:
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; Camden Flatirons in Denver, CO, a $78 million project with
424 apartment homes; Camden Glendale in Glendale, CA, a $115 million project
with 303 apartment homes; Camden Boca Raton in Boca Raton, FL, a $54 million
project with 261 apartment homes; and Camden Paces in Atlanta, GA, a $110
million project with 379 apartment homes.

Construction also continued at two joint venture development communities:
Camden South Capitol in Washington, DC, an $88 million project with 276
apartment homes; and Camden Waterford Lakes in Orlando, FL, a $40 million
project with 300 apartment homes. Camden South Capitol began leasing
subsequent to quarter-end and is currently 11% leased.

Equity Issuances

During the first quarter, Camden issued 135,747 common shares through its ATM
program at an average price of $70.63 per share, for total net consideration
of approximately $9.4 million.

Earnings Guidance

Camden updated its 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 $3.89 to $4.05 per diluted share, and
full-year 2013 EPS is expected to be $1.79 to $1.95 per diluted share. Second
quarter 2013 earnings guidance is $0.96 to $1.00 per diluted share for FFO and
$0.34 to $0.38 per diluted share for EPS. Guidance for EPS excludes potential
future gains on real estate transactions. Camden intends to update its
earnings guidance to the market on a quarterly basis.

The Company’s 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, May 3, 2013 at 11:00 a.m.
Central Time to review its first quarter 2013 results and discuss its outlook
for future performance. To participate in the call, please dial (888) 317-6003
(Domestic) or (412) 317-6061 (International) by 10:50 a.m. Central Time and
enter passcode: 1896876, 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 inother 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 64,835 apartment homes across the United States. Upon
completion of 9 properties under development, the Company's portfolio will
increase to 67,680 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
www.camdenliving.com.

                                                            
CAMDEN                                     OPERATING RESULTS
(In thousands, except per share and property data amounts)
                                                            
(Unaudited)                                   Three Months Ended
                                              March 31,
OPERATING DATA                                2013             2012
Property revenues
Rental revenues                               $  169,603        $  146,254
Other property revenues                         26,587         23,445   
Total property revenues                         196,190        169,699  
                                                                
Property expenses
Property operating and maintenance               50,494            46,114
Real estate taxes                               21,653         17,373   
Total property expenses                         72,147         63,487   
                                                                
Non-property income
Fee and asset management                         2,894             2,923
Interest and other income (loss)                 52                (688     )
Income on deferred compensation plans           2,999          7,786    
Total non-property income                       5,945          10,021   
                                                                
Other expenses
Property management                              5,983             5,284
Fee and asset management                         1,477             1,743
General and administrative                       9,794             8,679
Interest                                         24,895            26,683
Depreciation and amortization                    53,255            47,906
Amortization of deferred financing costs         916               912
Expense on deferred compensation plans          2,999          7,786    
Total other expenses                            99,319         98,993   
                                                                
                                                                
Gain on sale of land                             698               -
Gain on acquisition of controlling               -                 40,191
interests in joint ventures
Equity in income of joint ventures              934            366      
Income from continuing operations before         32,301            57,797
income taxes
Income tax expense - current                    (399     )      (224     )
Income from continuing operations                31,902            57,573
Income from discontinued operations              748               2,990
Gain on sale of discontinued operations,        31,783         32,541   
net of tax
Net income                                       64,433            93,104
Less income allocated to noncontrolling          (917     )        (764     )
interests from continuing operations
Less income, including gain on sale,
allocated to noncontrolling interests from       (40      )        (731     )
discontinued operations
Less income allocated to perpetual               -                 (776     )
preferred units
Less write off of original issuance costs       -              (2,075   )
of redeemed perpetual preferred units
Net income attributable to common             $  63,476       $  88,758   
shareholders
                                                                
                                                                
CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
Net income                                    $  64,433         $  93,104
Other comprehensive income
Reclassification of prior service cost and      14             8        
net loss on post retirement obligations
Comprehensive income                             64,447            93,112
Less income allocated to noncontrolling          (917     )        (764     )
interests from continuing operations
Less income, including gain on sale,
allocated to noncontrolling interests from       (40      )        (731     )
discontinued operations
Less income allocated to perpetual               -                 (776     )
preferred units
Less write off of original issuance costs       -              (2,075   )
of redeemed perpetual preferred units
Comprehensive income attributable to          $  63,490       $  88,766   
common shareholders
                                                                
                                                                
PER SHARE DATA
Net income attributable to common             $  0.72           $  1.10
shareholders - basic
Net income attributable to common                0.72              1.07
shareholders - diluted
Income from continuing operations
attributable to common shareholders -            0.35              0.66
basic
Income from continuing operations
attributable to common shareholders -            0.35              0.65
diluted
                                                                
Weighted average number of common and
common equivalent shares outstanding:
Basic                                            86,703            79,885
Diluted                                          87,276            82,855
                                                                
                                                                
                                                                
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
                                    March 31,
FUNDS FROM OPERATIONS               2013                    2012
                                                             
Net income attributable to          $    63,476              $   88,758
common shareholders
Real estate depreciation from            52,158                  46,797
continuing operations
Real estate depreciation and
amortization from discontinued           215                     2,398
operations
Adjustments for unconsolidated           1,608                   2,275
joint ventures
Income allocated to                      957                     1,093
noncontrolling interests
(Gain) on acquisition of
controlling interests in joint           -                       (40,191   )
ventures
(Gain) on sale of discontinued          (31,783    )          (32,541   )
operations, net of tax
Funds from operations -             $    86,631            $   68,589    
diluted
                                                             
PER SHARE DATA
Funds from operations -             $    0.97                $   0.83
diluted
Cash distributions                       0.63                    0.56
                                                             
Weighted average number of
common and
common equivalent shares
outstanding:
FFO - diluted                            89,177                  82,855
                                                             
PROPERTY DATA
Total operating properties               192                     197
(end of period) ^(a)
Total operating apartment
homes in operating properties            65,005                  67,025
(end of period) ^(a)
Total operating apartment                54,311                  52,957
homes (weighted average)
Total operating apartment
homes - excluding discontinued           53,653                  48,900
operations (weighted average)
                                                             
                                                             
^(a) Includes joint ventures
and properties held for sale.
                                                             
                                                             
                                                             
Note: Please refer to the following pages for definitions and reconciliations
of all non-GAAP financial measures presented in this document.

                                                                               
CAMDEN           BALANCE SHEETS
                 (In thousands)
                                                                           
                                                                                     
(Unaudited)      Mar 31,          Dec 31,          Sept 30,         Jun 30,          Mar 31,
                 2013            2012            2012            2012            2012
ASSETS
Real estate
assets, at
cost
Land             $ 949,244        $ 949,777        $ 929,289        $ 893,910        $ 868,964
Buildings and     5,404,616     5,389,674     5,359,707     5,203,675     5,068,560  
improvements
                   6,353,860        6,339,451        6,288,996        6,097,585        5,937,524
Accumulated       (1,552,499 )   (1,518,896 )   (1,542,530 )   (1,505,862 )   (1,458,451 )
depreciation
Net operating
real estate        4,801,361        4,820,555        4,746,466        4,591,723        4,479,073
assets
Properties
under              339,848          334,463          280,948          297,712          301,282
development,
including land
Investments in     45,260           45,092           46,566           47,776           49,436
joint ventures
Properties        14,986        30,517        6,373         -             -          
held for sale
Total real         5,201,455        5,230,627        5,080,353        4,937,211        4,829,791
estate assets
Accounts
receivable -       26,948           33,625           28,874           29,940           29,742
affiliates
Other assets,      89,233           88,260           96,401           88,002           89,706
net ^(a)
Cash and cash      59,642           26,669           5,590            52,126           49,702
equivalents
Restricted        5,578         5,991         6,742         5,295         5,074      
cash
Total assets     $ 5,382,856    $ 5,385,172    $ 5,217,960    $ 5,112,574    $ 5,004,015  
                                                                                     
                                                                                     
                                                                                     
LIABILITIES
AND EQUITY
Liabilities
Notes payable
Unsecured        $ 1,538,471      $ 1,538,212      $ 1,415,354      $ 1,381,152      $ 1,380,952
Secured            945,134          972,256          978,371          1,015,260        1,050,154
Accounts
payable and        102,307          101,896          118,879          87,041           105,370
accrued
expenses
Accrued real       20,683           28,452           43,757           31,607           17,991
estate taxes
Distributions      56,559           49,969           49,940           49,135           47,594
payable
Other
liabilities ^     69,679        67,679        78,551        83,471        90,423     
(b)
Total              2,732,833        2,758,464        2,684,852        2,647,666        2,692,484
liabilities
                                                                                     
Commitments
and
contingencies
                                                                                     
Equity
Common shares
of beneficial      962              962              959              945              919
interest
Additional
paid-in            3,590,261        3,587,505        3,580,528        3,501,354        3,327,961
capital
Distributions
in excess of
net income         (590,831   )     (598,951   )     (692,235   )     (674,221   )     (648,074   )
attributable
to common
shareholders
Treasury
shares, at         (412,643   )     (425,355   )     (425,756   )     (430,958   )     (437,215   )
cost
Accumulated
other             (1,048     )   (1,062     )   (660       )   (667       )   (675       )
comprehensive
loss ^(c)
Total common       2,586,701        2,563,099        2,462,836        2,396,453        2,242,916
equity
Noncontrolling    63,322        63,609        70,272        68,455        68,615     
interests
Total equity      2,650,023     2,626,708     2,533,108     2,464,908     2,311,531  
Total
liabilities      $ 5,382,856    $ 5,385,172    $ 5,217,960    $ 5,112,574    $ 5,004,015  
and equity
                                                                                     
                                                                                     
                                                                                     
(a) Includes:
net deferred     $ 14,861         $ 15,635         $ 13,695         $ 14,432         $ 15,267
charges of:
                                                                                     
(b) Includes:
deferred         $ 2,158          $ 2,521          $ 1,746          $ 2,012          $ 2,337
revenues of:
distributions
in excess of
investments in   $ 9,718          $ 9,509          $ 16,708         $ 16,499         $ 16,298
joint ventures
of:
fair value
adjustment of      ($2        )     ($1        )   $ 185            $ 5,918          $ 11,574
derivative
instruments:
                                                                                     
(c) Represents the unrealized loss 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
                                                 March 31,
                                                 2013             2012
Net income
attributable to                                  $  63,476         $ 88,758
common
shareholders
Real estate
depreciation                                        52,158           46,797
from continuing
operations
Real estate
depreciation
and
amortization                                        215              2,398
from
discontinued
operations
Adjustments for
unconsolidated                                      1,608            2,275
joint ventures
Income
allocated to                                        957              1,093
noncontrolling
interests
(Gain) on
acquisition of
controlling                                         -                (40,191 )
interests in
joint ventures
(Gain) on sale
of discontinued                                    (31,783  )     (32,541 )
operations, net
of tax
Funds from
operations -                                     $  86,631       $ 68,589  
diluted
                                                                   
Weighted
average number
of common and
common
equivalent
shares
outstanding:
EPS diluted                                         87,276           82,855
FFO diluted                                         89,177           82,855
                                                                   
Net income
attributable to
common                                           $  0.72           $ 1.07
shareholders -
diluted
FFO per common                                   $  0.97           $ 0.83
share - diluted
                                                                   
                                                                   
                                                                   
                                                                   
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:
                                                                   
                   2Q13 Range                    2013 Range
                   Low        High              Low              High
                                                                   
Expected net
income
attributable to
common             $  0.34     $  0.38           $  1.79           $ 1.95
shareholders
per share -
diluted
Expected real
estate                0.59        0.59              2.34             2.34
depreciation
Expected
adjustments for       0.02        0.02              0.07             0.07
unconsolidated
joint ventures
Expected income
allocated to          0.01        0.01              0.05             0.05
noncontrolling
interests
Realized (gain)
on sale of           0.00      0.00             (0.36    )     (0.36   )
discontinued
operations
Expected FFO
per share -        $  0.96     $  1.00           $  3.89           $ 4.05
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
                                                 March 31,
                                                 2013             2012
Net income
attributable to                                  $  63,476         $ 88,758
common
shareholders
Less: Fee and
asset                                               (2,894   )       (2,923  )
management
income
Less: Interest
and other                                           (52      )       688
(income) loss
Less: Income on
deferred                                            (2,999   )       (7,786  )
compensation
plans
Plus: Property
management                                          5,983            5,284
expense
Plus: Fee and
asset                                               1,477            1,743
management
expense
Plus: General
and                                                 9,794            8,679
administrative
expense
Plus: Interest                                      24,895           26,683
expense
Plus:
Depreciation                                        53,255           47,906
and
amortization
Plus:
Amortization of                                     916              912
deferred
financing costs
Plus: Expense
on deferred                                         2,999            7,786
compensation
plans
Less: Gain on                                       (698     )       -
sale of land
Less: Gain on
acquisition of
controlling                                         -                (40,191 )
interests in
joint ventures
Less: Equity in
income of joint                                     (934     )       (366    )
ventures
Plus: Income
tax expense -                                       399              224
current
Less: Income
from                                                (748     )       (2,990  )
discontinued
operations
Less: Gain on
sale of
discontinued                                        (31,783  )       (32,541 )
operations, net
of tax
Plus: Income
allocated to
noncontrolling                                      917              764
interests from
continuing
operations
Plus: Income,
including gain
on sale,
allocated to                                        40               731
noncontrolling
interests from
discontinued
operations
Plus: Income
allocated to                                        -                776
perpetual
preferred units
Plus: Write off
of original
issuance costs                                     -             2,075   
of redeemed
perpetual
preferred units
Net Operating                                    $  124,043        $ 106,212
Income (NOI)
                                                                   
"Same Property"                                  $  101,729        $ 95,327
Communities
Non-"Same
Property"                                           20,706           10,135
Communities
Development and
Lease-Up                                            962              8
Communities
Other                                              646           742     
Net Operating                                    $  124,043        $ 106,212
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
                                                 March 31,
                                                 2013             2012
Net income
attributable to                                  $  63,476         $ 88,758
common
shareholders
Plus: Interest                                      24,895           26,683
expense
Plus:
Amortization of                                     916              912
deferred
financing costs
Plus:
Depreciation                                        53,255           47,906
and
amortization
Plus: Income
allocated to                                        -                776
perpetual
preferred units
Plus: Write off
of original
issuance costs                                      -                2,075
of redeemed
perpetual
preferred units
Plus: Income
allocated to
noncontrolling                                      917              764
interests from
continuing
operations
Plus: Income,
including gain
on sale,
allocated to                                        40               731
noncontrolling
interests from
discontinued
operations
Plus: Income
tax expense -                                       399              224
current
Plus: Real
estate
depreciation
and                                                 215              2,398
amortization
from
discontinued
operations
Less: Gain on
acquisition of
controlling                                         -                (40,191 )
interests in
joint ventures
Less: Gain on                                       (698     )       -
sale of land
Less: Equity in
income of joint                                     (934     )       (366    )
ventures
Less: Gain on
sale of
discontinued                                       (31,783  )     (32,541 )
operations, net
of tax
EBITDA                                           $  110,698        $ 98,129

Contact:

Camden Property Trust
Kim Callahan, 713-354-2549
 
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