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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
 
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