Camden Property Trust Announces First Quarter 2014 Operating Results

  Camden Property Trust Announces First Quarter 2014 Operating Results

Business Wire

HOUSTON -- May 6, 2014

Camden Property Trust (NYSE: CPT) today announced operating results for the
three months ended March 31, 2014.

Funds from Operations (“FFO”)

FFO for the first quarter of 2014 totaled $1.05 per diluted share or $94.8
million, as compared to $0.97 per diluted share or $86.6 million for the same
period in 2013. FFO for the three months ended March 31, 2014 and 2013
included a $0.4 million and $0.7 million, respectively, gain on sale of
undeveloped land.

Net Income Attributable to Common Shareholders (“EPS”)

The Company reported EPS of $40.0 million or $0.45 per diluted share for the
first quarter of 2014, as compared to $63.5 million or $0.72 per diluted share
for the same period in 2013. EPS for the three months ended March 31, 2014
included a $3.6 million or $0.04 per diluted share gain on sale of
unconsolidated joint venture properties, and a $0.4 million gain on sale of
undeveloped land. EPS for the three months ended March 31, 2013 included a
$31.8 million or $0.36 per diluted share gain on sale of discontinued
operations, and a $0.7 million or $0.01 per diluted share gain on sale of
undeveloped land.

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

Same Property Results

For the 47,915 apartment homes included in consolidated same property results,
first quarter 2014 same property net operating income (“NOI”) increased 6.3%
compared to the first quarter of 2013, with revenues increasing 4.7% and
expenses increasing 2.1%. On a sequential basis, first quarter 2014 same
property NOI declined 0.3% compared to the fourth quarter of 2013, with
revenues increasing 0.6% and expenses increasing 2.3% compared to the prior
quarter. Same property physical occupancy levels for the portfolio averaged
95.6% during the first quarter of 2014, compared to 95.7% in the fourth
quarter of 2013 and 94.9% in the first quarter of 2013.

The Company defines same property communities as communities owned and
stabilized since January 1, 2013. 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 two joint venture apartment communities during the quarter
for a total of $65.6 million: Camden Braun Station, a 240-home community in
San Antonio, TX, and Camden Piney Point, a 318-home community in Houston, TX.
Camden’s proportionate share of the gain on sale was $3.6 million. The Company
also sold approximately 3.0 acres of land adjacent to a current development
community in Atlanta, Georgia for $6.3 million, recognizing a gain of $0.4
million.

Development Activity

Construction began during the quarter at Camden Chandler in Chandler, AZ, a
$75 million project with 380 apartment homes. Construction continued at 13
additional wholly-owned development communities: Camden NOMA in Washington,
DC, a $110 million project with 320 apartment homes which is currently 40%
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; Camden Gallery in Charlotte, NC,
a $58 million project with 323 apartment homes; The Camden in Los Angeles, CA,
a $145 million project with 287 apartment homes; Camden Victory Park in
Dallas, TX, an $82 million project with 423 apartment homes; and Camden
Miramar Phase IXB in Corpus Christi, TX, an $8 million 75-unit expansion of an
existing community.

Lease-up continued during the quarter at Camden South Capitol in Washington,
DC, a $78 million joint venture project with 276 apartment homes which is
currently 82% leased; and Camden Waterford Lakes in Orlando, FL, a $37 million
joint venture project with 300 apartment homes which completed construction
during the quarter and is currently 71% leased. Construction also continued at
Camden Southline in Charlotte, NC, a $48 million joint venture project with
266 apartment homes.

During the quarter Camden acquired 2.9 acres of land in Houston, TX for $15.6
million for the future development of a two-phased apartment community.
Subsequent to quarter-end, the Company acquired 7.6 acres of land in
Montgomery County, MD for $23.8 million for the future development of an
apartment community.

Earnings Guidance

Camden maintained its FFO 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 now expected to be $1.48 to $1.68 per diluted share.
Second 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
future gains on real estate transactions.

The Company’s 2014 earnings guidance is based on projections of 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 Wednesday, May 7, 2014 at 11:00
a.m. Central Time to review its first quarter 2014 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: 3295566, 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 169
properties containing 59,641 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 64,150 apartment homes in
183 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
                                                     March 31,
OPERATING DATA                                       2014         2013
Property revenues
Rental revenues                                      $ 178,964     $ 164,393
Other property revenues                               26,965     25,418  
Total property revenues                               205,929    189,811 
                                                                   
Property expenses
Property operating and maintenance                     50,747        48,263
Real estate taxes                                     23,577     21,183  
Total property expenses                               74,324     69,446  
                                                                   
Non-property income
Fee and asset management                               3,023         2,894
Interest and other income                              288           52
Income on deferred compensation plans                 681        2,999   
Total non-property income                             3,992      5,945   
                                                                   
Other expenses
Property management                                    5,839         5,983
Fee and asset management                               1,259         1,477
General and administrative                             9,545         9,794
Interest                                               23,133        24,895
Depreciation and amortization                          57,396        51,603
Amortization of deferred financing costs               841           916
Expense on deferred compensation plans                681        2,999   
Total other expenses                                  98,694     97,667  
                                                                   
                                                                   
Gain on sale of land                                   354           698
Equity in income of joint ventures                    4,290      934     
Income from continuing operations before               41,547        30,275
income taxes
Income tax expense                                    (474    )   (399    )
Income from continuing operations                      41,073        29,876
Income from discontinued operations                    -             2,774
Gain on sale of discontinued operations,              -          31,783  
net of tax
Net income                                             41,073        64,433
Less income allocated to non-controlling               (1,037  )     (864    )
interests from continuing operations
Less income, including gain on sale,
allocated to non-controlling interests from           -          (93     )
discontinued operations
Net income attributable to common                    $ 40,036    $ 63,476  
shareholders
                                                                   
                                                                   
CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
Net income                                           $ 41,073      $ 64,433
Other comprehensive income
Reclassification of prior service cost and             15            14
net loss on post retirement obligation
Comprehensive income                                   41,088        64,447
Less income allocated to non-controlling               (1,037  )     (864    )
interests from continuing operations
Less income, including gain on sale,
allocated to non-controlling interests from           -          (93     )
discontinued operations
Comprehensive income attributable to common          $ 40,051    $ 63,490  
shareholders
                                                                   
                                                                   
PER SHARE DATA
Net income attributable to common                    $ 0.45        $ 0.72
shareholders - basic
Net income attributable to common                      0.45          0.72
shareholders - diluted
Income from continuing operations                      0.45          0.33
attributable to common shareholders - basic
Income from continuing operations
attributable to common shareholders -                  0.45          0.33
diluted
                                                                   
Weighted average number of common and
common equivalent shares outstanding:
Basic                                                  87,651        86,703
Diluted                                                88,824        87,276
                                                                   
                                                                   
                                                                   
Note: Please refer to the following pages for definitions and reconciliations
of all non-GAAP financial measures presented in this document.

                                                       
CAMDEN                       FUNDS FROM OPERATIONS
(In thousands, except per share and property data amounts)
                                                        
                                                             
                                                             
(Unaudited)                            Three Months Ended
                                       March 31,
FUNDS FROM OPERATIONS                  2014                 2013
                                                             
Net income attributable to             $    40,036           $   63,476
common shareholders
Real estate depreciation                    56,011               50,506
from continuing operations
Real estate depreciation and
amortization from                           -                    1,867
discontinued operations
Adjustments for
unconsolidated joint                        1,314                1,608
ventures
Income allocated to                         1,037                957
non-controlling interests
(Gain) on sale of
unconsolidated joint venture                (3,566   )           -
properties
(Gain) on sale of
discontinued operations, net               -                 (31,783   )
of tax
Funds from operations -                $    94,832         $   86,631    
diluted
                                                             
PER SHARE DATA
Funds from operations -                $    1.05             $   0.97
diluted
Cash distributions                          0.66                 0.63
                                                             
Weighted average number of
common and
common equivalent shares
outstanding:
FFO - diluted                               89,910               89,177
                                                             
PROPERTY DATA
Total operating properties                  169                  192
(end of period) ^(a)
Total operating apartment
homes in operating                          59,641               65,005
properties (end of period)
^(a)
Total operating apartment                   52,659               54,311
homes (weighted average)
Total operating apartment
homes - excluding                           52,659               51,018
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)         Mar 31,          Dec 31,          Sep 30,          Jun 30,          Mar 31,
                    2014            2013            2013            2013            2013
ASSETS
Real estate
assets, at cost
Land                $ 978,770        $ 969,711        $ 967,121        $ 965,257        $ 949,244
Buildings and        5,691,619     5,629,904     5,596,754     5,552,095     5,404,616  
improvements
                      6,670,389        6,599,615        6,563,875        6,517,352        6,353,860
Accumulated          (1,698,724 )   (1,643,713 )   (1,619,325 )   (1,604,402 )   (1,552,499 )
depreciation
Net operating
real estate           4,971,665        4,955,902        4,944,550        4,912,950        4,801,361
assets
Properties
under                 515,141          472,566          438,968          393,694          339,848
development,
including land
Investments in        36,719           42,155           43,338           44,630           45,260
joint ventures
Properties held      -             -             58,765        -             14,986     
for sale
Total real            5,523,525        5,470,623        5,485,621        5,351,274        5,201,455
estate assets
Accounts
receivable -          26,145           27,724           27,474           27,274           26,948
affiliates
Other assets,         107,862          109,401          112,520          94,847           89,233
net ^(a)
Cash and cash         16,768           17,794           4,707            6,506            59,642
equivalents
Restricted cash      5,549         6,599         60,889        6,381         5,578      
Total assets        $ 5,679,849    $ 5,632,141    $ 5,691,211    $ 5,486,282    $ 5,382,856  
                                                                                        
                                                                                        
                                                                                        
LIABILITIES AND
EQUITY
Liabilities
Notes payable
Unsecured           $ 1,649,041      $ 1,588,798      $ 1,721,998      $ 1,579,733      $ 1,538,471
Secured               940,881          941,968          943,039          944,090          945,134
Accounts
payable and           124,981          113,307          124,336          100,279          102,307
accrued
expenses
Accrued real          21,922           35,648           50,247           36,863           20,683
estate taxes
Distributions         59,728           56,787           56,793           56,821           56,559
payable
Other
liabilities ^        88,693        88,272        69,716        63,366        69,679     
(b)
Total                 2,885,246        2,824,780        2,966,129        2,781,152        2,732,833
liabilities
                                                                                        
Commitments and
contingencies
Non-Qualified
deferred              55,498           47,180           47,092           -                -
compensation
share awards
                                                                                        
Equity
Common shares
of beneficial         966              967              967              967              962
interest
Additional            3,593,633        3,596,069        3,595,536        3,625,283        3,590,261
paid-in capital
Distributions
in excess of
net income            (523,321   )     (494,167   )     (571,935   )     (574,286   )     (590,831   )
attributable to
common
shareholders
Treasury              (399,510   )     (410,227   )     (410,309   )     (410,665   )     (412,643   )
shares, at cost
Accumulated
other                (1,091     )   (1,106     )   (1,021     )   (1,035     )   (1,048     )
comprehensive
loss ^(c)
Total common          2,670,677        2,691,536        2,613,238        2,640,264        2,586,701
equity
Non-controlling      68,428        68,645        64,752        64,866        63,322     
interests
Total equity         2,739,105     2,760,181     2,677,990     2,705,130     2,650,023  
Total
liabilities and     $ 5,679,849    $ 5,632,141    $ 5,691,211    $ 5,486,282    $ 5,382,856  
equity
                                                                                        
                                                                                        
                                                                                        
(a) Includes:
net deferred        $ 13,615         $ 14,497         $ 13,243         $ 14,008         $ 14,861
charges of:
                                                                                        
(b) Includes:
deferred            $ 1,786          $ 1,886          $ 1,979          $ 1,336          $ 2,158
revenues of:
distributions
in excess of
investments in      $ -              $ -              $ -              $ -              $ 9,718
joint ventures
of:
fair value
adjustment of       $ -              $ -              $ -              $ -                ($2        )
derivative
instruments:
                                                                                        
(c) Represents the unrealized loss and unamortized prior service costs on post retirement obligations.

                                                          
CAMDEN              NON-GAAP FINANCIAL MEASURES
                   DEFINITIONS & RECONCILIATIONS
                    (In thousands, except per share amounts)
                                                        
                                                                 
                                                                 
(Unaudited)
                                                                 
This document contains certain non-GAAP financial measures management believes
are useful in evaluating an equity REIT's performance. Camden's definitions
and calculations of non-GAAP financial measures may differ from those used by
other REITs, and thus may not be comparable. The non-GAAP financial measures
should not be considered as an alternative to net income as an indication of
our operating performance, or to net cash provided by operating activities as
a measure of our liquidity.
                                                                 
                                                                 
FFO
The National Association of Real Estate Investment Trusts (“NAREIT”) currently
defines FFO as net income attributable to common shares computed in accordance
with generally accepted accounting principles (“GAAP”), excluding gains or
losses from depreciable operating property sales, plus real estate
depreciation and amortization, and after adjustments for unconsolidated
partnerships and joint ventures. Camden’s definition of diluted FFO also
assumes conversion of all dilutive convertible securities, including minority
interests, which are convertible into common equity. The Company considers FFO
to be an appropriate supplemental measure of operating performance because, by
excluding gains or losses on dispositions of operating properties and
excluding depreciation, FFO can help one compare the operating performance of
a company's real estate between periods or as compared to different companies.
A reconciliation of net income attributable to common shareholders to FFO is
provided below:
                                                                 
                                               Three Months Ended
                                               March 31,
                                               2014             2013
Net income
attributable to                                $  40,036         $  63,476
common
shareholders
Real estate
depreciation                                      56,011            50,506
from continuing
operations
Real estate
depreciation and
amortization                                      -                 1,867
from
discontinued
operations
Adjustments for
unconsolidated                                    1,314             1,608
joint ventures
Income allocated
to                                                1,037             957
non-controlling
interests
(Gain) on sale
of
unconsolidated                                    (3,566   )        -
joint venture
properties
(Gain) on sale
of discontinued                                  -              (31,783  )
operations, net
of tax
Funds from
operations -                                   $  94,832       $  86,631   
diluted
                                                                 
Weighted average
number of common
and
common
equivalent
shares
outstanding:
EPS diluted                                       88,824            87,276
FFO diluted                                       89,910            89,177
                                                                 
Net income
attributable to
common                                         $  0.45           $  0.72
shareholders -
diluted
FFO per common                                 $  1.05           $  0.97
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:
                                                                 
                    2Q14 Range                 2014 Range
                    Low        High           Low              High
                                                                 
Expected net
income
attributable to     $  0.37     $  0.41        $  1.48           $  1.68
common
shareholders per
share - diluted
Expected real
estate                 0.63        0.63           2.56              2.56
depreciation
Expected
adjustments for        0.01        0.01           0.05              0.05
unconsolidated
joint ventures
Expected income
allocated to           0.01        0.01           0.05              0.05
non-controlling
interests
(Gain) on sale
of
unconsolidated        0.00      0.00          (0.04    )      (0.04    )
joint venture
property
Expected FFO per    $  1.02     $  1.06        $  4.10           $  4.30
share - diluted
                                                                 
                                                                 

Note: This table contains forward-looking statements. Please see the paragraph
regarding forward-looking statements earlier in this document.
                                                                 
                                                                 
Net Operating
Income (NOI)
NOI is defined by the Company as total property income less property operating
and maintenance expenses less real estate taxes. The Company considers NOI to
be an appropriate supplemental measure of operating performance to net income
attributable to common shareholders because it reflects the operating
performance of our communities without allocation of corporate level property
management overhead or general and administrative costs.
A reconciliation of net income attributable to common shareholders to net
operating income is provided below:
                                                                 
                                               Three Months Ended
                                               March 31,
                                               2014             2013
Net income
attributable to                                $  40,036         $  63,476
common
shareholders
Less: Fee and
asset management                                  (3,023   )        (2,894   )
income
Less: Interest
and other                                         (288     )        (52      )
(income) loss
Less: Income on
deferred                                          (681     )        (2,999   )
compensation
plans
Plus: Property
management                                        5,839             5,983
expense
Plus: Fee and
asset management                                  1,259             1,477
expense
Plus: General
and                                               9,545             9,794
administrative
expense
Plus: Interest                                    23,133            24,895
expense
Plus:
Depreciation and                                  57,396            51,603
amortization
Plus:
Amortization of                                   841               916
deferred
financing costs
Plus: Expense on
deferred                                          681               2,999
compensation
plans
Less: Gain on                                     (354     )        (698     )
sale of land
Less: Equity in
income of joint                                   (4,290   )        (934     )
ventures
Plus: Income tax                                  474               399
expense
Less: Income
from                                              -                 (2,774   )
discontinued
operations
Less: Gain on
sale of
discontinued                                      -                 (31,783  )
operations, net
of tax
Plus: Income
allocated to
non-controlling                                   1,037             864
interests from
continuing
operations
Plus: Income,
including gain
on sale,
allocated to                                     -              93       
non-controlling
interests from
discontinued
operations
Net Operating                                  $  131,605        $  120,365
Income (NOI)
                                                                 
"Same Property"                                $  118,643        $  111,646
Communities
Non-"Same
Property"                                         12,313            7,924
Communities
Development and
Lease-Up                                          (5       )        (6       )
Communities
Other                                            654            801      
Net Operating                                  $  131,605        $  120,365
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
                                               March 31,
                                               2014             2013
Net income
attributable to                                $  40,036         $  63,476
common
shareholders
Plus: Interest                                    23,133            24,895
expense
Plus:
Amortization of                                   841               916
deferred
financing costs
Plus:
Depreciation and                                  57,396            51,603
amortization
Plus: Income
allocated to
non-controlling                                   1,037             864
interests from
continuing
operations
Plus: Income,
including gain
on sale,
allocated to                                      -                 93
non-controlling
interests from
discontinued
operations
Plus: Income tax                                  474               399
expense
Plus: Real
estate
depreciation and
amortization                                      -                 1,867
from
discontinued
operations
Less: Gain on                                     (354     )        (698     )
sale of land
Less: Equity in
income of joint                                   (4,290   )        (934     )
ventures
Less: Gain on
sale of
discontinued                                     -              (31,783  )
operations, net
of tax
EBITDA                                         $  118,273        $  110,698

Contact:

Camden Property Trust
Kim Callahan, 713-354-2549
 
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