Camden Property Trust Announces 2013 Operating Results, 4.8% Dividend Increase and 2014 Financial Outlook

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