HOUSTON--(Business Wire)--
Camden Property Trust (NYSE:CPT) announced that its funds from
operations ("FFO") for the first quarter of 2008 totaled $0.89 per
diluted share or $52.3 million, as compared to $0.89 per diluted share
or $55.9 million for the same period in 2007. The Company reported net
income ("EPS") of $14.9 million or $0.27 per diluted share for the
first quarter of 2008, as compared to $13.0 million or $0.22 per
diluted share for the same period in 2007. EPS for the three months
ended March 31, 2008 included a $0.13 per diluted share impact from
gain on sale of properties, including discontinued operations. A
reconciliation of net income to FFO is included in the financial
tables accompanying this press release.
Same-Property Results
For the 43,480 apartment homes included in consolidated
same-property results, first quarter 2008 same-property net operating
income ("NOI") increased 1.4% compared to the first quarter of 2007,
with revenues increasing 1.5% and expenses increasing 1.6%. On a
sequential basis, first quarter 2008 same-property NOI declined 1.2%
compared to the fourth quarter of 2007, with revenues increasing 0.5%
and expenses increasing 3.5% compared to the prior quarter.
Same-property physical occupancy levels for the portfolio averaged
93.8% during the first quarter of 2008, compared to 94.5% in the first
quarter of 2007 and 93.6% in the fourth quarter of 2007.
The Company defines same-property communities as communities owned
and stabilized as of January 1, 2007, excluding properties held for
sale and communities under redevelopment. A reconciliation of net
income to net operating income and same-property net operating income
is included in the financial tables accompanying this press release.
Development Activity
During the first quarter, lease-up was completed at Camden Old
Creek in San Marcos, CA, a $92.2 million project that is currently 94%
occupied. As of March 31, 2008, Camden had three wholly-owned
apartment communities which were completed and in lease-up: Camden
Royal Oaks in Houston, TX, a $21.0 million project that is currently
86% leased; Camden Monument Place in Fairfax, VA, a $62.4 million
project that is currently 88% leased; and Camden City Centre in
Houston, TX, a $51.6 million project that is currently 77% leased. The
Company also had one joint venture community which was completed and
in lease-up: Camden Plaza in Houston, TX, a $40.8 million project that
is currently 80% leased.
The Company has eight additional communities currently under
construction and in lease-up: Camden Potomac Yard in Arlington, VA, a
$110.0 million project that is currently 34% leased; Camden
Summerfield in Landover, MD, a $68.0 million project that is currently
36% leased; Camden Orange Court in Orlando, FL, a $49.0 million
project that is currently 14% leased; Camden Dulles Station in Oak
Hill, VA, a $77.0 million project that is currently 9% leased; Camden
Cedar Hills in Austin, TX, a $27.0 million project that is currently
3% leased; Camden Whispering Oaks in Houston, TX, a $30.0 million
project that is currently 3% leased; Camden College Park in College
Park, MD, a $139.9 million joint venture project that is currently 32%
leased; and Camden Main & Jamboree in Irvine, CA, a $115.0 million
joint venture project that is currently 27% leased.
Camden's current development pipeline under construction includes
six wholly-owned communities comprising 1,778 apartment homes with a
total budgeted cost of $361.0 million. The Company also has five joint
venture communities under construction comprising 1,605 apartment
homes with a total budgeted cost of $376.7 million.
Camden's future development pipeline currently consists of 18
potential developments comprising 5,855 apartment homes and a total
estimated cost of $1.5 billion. The future pipeline represents
projects in the early phase of the development process for which
Camden either owns the land, has an option to acquire the land or
enter into a leasehold interest, or is the buyer under a long-term
conditional contract.
Disposition Activity
During the quarter, the Company disposed of Camden Ridgeview, a
167-home apartment community in Austin, TX for $10.6 million,
resulting in a gain on sale of $6.1 million. The Company also sold
4,100 square feet of retail space adjacent to its regional office in
Las Vegas for $1.4 million, resulting in a gain on sale of $1.1
million.
Properties and Land Held for Sale
At March 31, 2008, Camden had two operating communities consisting
of 272 apartment homes held for sale: Camden Pinnacle, a 224-home
apartment community in Denver, CO; and Oasis Sands, a 48-home
apartment community in Las Vegas, NV.
The Company also had 4.6 acres of undeveloped land in Boca Raton,
FL and Dallas, TX classified as held for sale at quarter-end.
Stock Repurchase
During the first quarter of 2008, Camden repurchased 690,400
common shares at an average price per share of $43.41, for a total of
$30.0 million. The Company completed a total of $230.1 million of
common share repurchases during 2007 and early 2008.
Earnings Guidance
Camden's earnings guidance for 2008 is based on its current and
expected views of the apartment market and general economic
conditions. Full-year 2008 FFO is expected to be $3.60 to $3.80 per
diluted share, and full-year 2008 EPS is expected to be $0.57 to $0.77
per diluted share. Second quarter 2008 earnings guidance is $0.87 to
$0.91 per diluted share for FFO and $0.08 to $0.12 per diluted share
for EPS. Guidance for EPS excludes potential future gains on the sale
of properties. Camden intends to update its earnings guidance to the
market on a quarterly basis. A reconciliation of expected net income
to expected FFO is included in the financial tables accompanying this
press release.
Conference Call
The Company will hold a conference call on Friday, May 2, 2008 at
10:00 a.m. Central Time to review its first quarter 2008 results and
discuss its outlook for future performance. To participate in the
call, please dial (800) 860-2442 (domestic) or (412) 858-4600
(international) by 9:50 a.m. Central Time and request the Camden
Property Trust First Quarter 2008 Earnings Call, or join the live
webcast of the conference call by accessing the Investor Relations
section of the Company's website at www.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.
Annual Meeting of Shareholders
Camden's Annual Meeting of Shareholders will be held on May 6,
2008 at the Renaissance Hotel, 6 East Greenway Plaza, Houston, Texas,
at 1:30 p.m., Central Standard Time. The Company's proxy statement,
10-K, and Annual Report to Shareholders are available in the Investor
Relations section of the company's website at www.camdenliving.com. If
you wish to receive hard copies of these documents, please contact
Camden's Investor Relations Department at ir@camdenliving.com.
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.
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 181 properties containing 62,918 apartment
homes across the United States. Upon completion of 11 properties under
development, the Company's portfolio will increase to 66,301 apartment
homes in 192 properties. Camden was recently named to FORTUNE(R)
Magazine's list of the "100 Best Companies to Work For."
For additional information, please contact Camden's Investor
Relations Department at (800) 922-6336 or (713) 354-2787 or access our
website at www.camdenliving.com.
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CAMDEN OPERATING RESULTS
(In thousands, except per share and property data amounts)
----------------------------------------------------------------------
(Unaudited) Three Months Ended
March 31,
-------------------
OPERATING DATA 2008 2007
------------------------------------------------- -------------------
Property revenues
Rental revenues $138,793 $133,036
Other property revenues 17,930 14,640
-------------------
Total property revenues 156,723 147,676
Property expenses
Property operating and maintenance 40,985 38,589
Real estate taxes 17,917 16,049
-------------------
Total property expenses 58,902 54,638
Non-property income
Fee and asset management income 2,412 2,386
Interest and other income 1,333 1,562
Income on deferred compensation plans (8,541) 2,306
-------------------
Total non-property income (4,796) 6,254
Other expenses
Property management 4,900 4,728
Fee and asset management 1,725 1,620
General and administrative 7,960 8,054
Interest 32,661 27,790
Depreciation and amortization 42,785 39,053
Amortization of deferred financing costs 742 913
Expense on deferred compensation plans (8,541) 2,306
-------------------
Total other expenses 82,232 84,464
-------------------
Income from continuing operations before gain on
sale of properties, equity in income of joint
ventures, minority interests and income taxes 10,793 14,828
Gain on sale of properties, including land 1,106 -
Equity in income (loss) of joint ventures (47) 735
Minority interests
Distributions on perpetual preferred units (1,750) (1,750)
Income allocated to common units and other
minority interests (1,269) (787)
-------------------
Income from continuing operations before income
taxes 8,833 13,026
Income tax expense (273) (1,905)
-------------------
Income from continuing operations 8,560 11,121
Income from discontinued operations 228 2,186
Gain on sale of discontinued operations 6,127 -
Income from discontinued operations allocated
to common units - (270)
-------------------
Net income $ 14,915 $ 13,037
===================
PER SHARE DATA
-------------------------------------------------
Net income - basic $ 0.27 $ 0.22
Net income - diluted 0.27 0.22
Income from continuing operations - basic 0.16 0.19
Income from continuing operations - diluted 0.16 0.19
Weighted average number of common and common
equivalent shares outstanding:
Basic 54,965 58,813
Diluted 55,625 59,994
PROPERTY DATA
-------------------------------------------------
Total operating properties (end of period) (a) 181 187
Total operating apartment homes in operating
properties (end of period) (a) 62,918 64,516
Total operating apartment homes (weighted
average) 51,763 53,097
Total operating apartment homes - excluding
discontinued operations (weighted average) 51,380 49,604
(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.
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CAMDEN FUNDS FROM OPERATIONS
(In thousands, except per share and property data amounts)
----------------------------------------------------------------------
(Unaudited) Three Months Ended
March 31,
----------------------
FUNDS FROM OPERATIONS 2008 2007
----------------------------------------------- ----------------------
Net income $ 14,915 $ 13,037
Real estate depreciation and amortization
from continuing operations 41,921 38,338
Real estate depreciation from discontinued
operations 17 1,268
Adjustments for unconsolidated joint
ventures 1,539 1,086
Income from continuing operations allocated
to common units 1,156 736
Income from discontinued operations
allocated to common units - 270
(Gain) loss on sale of operating properties,
net of taxes (1,106) 1,184
(Gain) on sale of discontinued operations (6,112) -
----------------------
Funds from operations - diluted $ 52,330 $ 55,919
======================
PER SHARE DATA
-----------------------------------------------
Funds from operations - diluted $ 0.89 $ 0.89
Cash distributions 0.70 0.69
Weighted average number of common and common
equivalent shares outstanding:
FFO - diluted 58,544 63,021
PROPERTY DATA
-----------------------------------------------
Total operating properties (end of period)
(a) 181 187
Total operating apartment homes in operating
properties (end of period) (a) 62,918 64,516
Total operating apartment homes (weighted
average) 51,763 53,097
Total operating apartment homes - excluding
discontinued operations (weighted average) 51,380 49,604
(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.
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CAMDEN BALANCE SHEETS
(In thousands)
----------------------------------------------------------------------
(Unaudited) Mar 31, Dec 31, Sep 30,
2008 2007 2007
-------------------------------------
ASSETS
Real estate assets, at cost
Land $ 749,664 $ 730,548 $ 714,044
Buildings and improvements 4,435,787 4,316,472 4,215,662
-------------------------------------
5,185,451 5,047,020 4,929,706
Accumulated depreciation (907,643) (868,074) (827,944)
-------------------------------------
Net operating real estate
assets 4,277,808 4,178,946 4,101,762
Properties under development,
including land 358,994 446,664 488,620
Investments in joint ventures 12,526 8,466 12,243
Properties held for sale,
including land 23,299 25,253 73,325
-------------------------------------
Total real estate assets 4,672,627 4,659,329 4,675,950
Accounts receivable - affiliates 36,166 35,940 36,171
Notes receivable
Affiliates 52,331 50,358 48,172
Other 8,710 11,565 11,565
Other assets, net (a) 116,010 126,996 129,810
Cash and cash equivalents 947 897 1,207
Restricted cash 5,325 5,675 5,904
-------------------------------------
Total assets $4,892,116 $4,890,760 $4,908,779
=====================================
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities
Notes payable
Unsecured $2,351,006 $2,265,319 $2,198,628
Secured 559,952 562,776 565,564
Accounts payable and accrued
expenses 90,779 107,403 110,643
Accrued real estate taxes 17,769 24,943 42,151
Other liabilities (b) 146,817 136,365 117,317
Distributions payable 42,942 42,689 44,180
-------------------------------------
Total liabilities 3,209,265 3,139,495 3,078,483
Commitments and contingencies
Minority interests
Perpetual preferred units 97,925 97,925 97,925
Common units 97,416 111,624 104,176
Other minority interests 8,537 10,403 10,740
-------------------------------------
Total minority interests 203,878 219,952 212,841
Shareholders' equity
Common shares of beneficial
interest 660 654 654
Additional paid-in capital 2,227,256 2,209,631 2,207,333
Distributions in excess of net
income (250,845) (227,025) (269,667)
Employee notes receivable (306) (1,950) (1,963)
Treasury shares, at cost (463,574) (433,874) (318,902)
Other comprehensive loss (c) (34,218) (16,123) -
-------------------------------------
Total shareholders' equity 1,478,973 1,531,313 1,617,455
-------------------------------------
Total liabilities and
shareholders' equity $4,892,116 $4,890,760 $4,908,779
=====================================
(a) includes:
net deferred charges of: $ 10,287 $ 10,811 $ 10,308
value of in place leases of: $ 62 $ 258 $ 703
(b) includes:
deferred revenues of: $ 2,575 $ 2,459 $ 2,738
above/below market leases
of: ($6) ($13) $ 25
distributions in excess of
investments in joint
ventures of: $ 25,065 $ 23,653 $ 20,867
fair value adjustment of
derivative instrument: $ 34,218 $ 16,123 -
(c) Represents the fair value
adjustment of the derivative
instrument.
(Unaudited) Jun 30, Mar 31,
2007 2007
------------------------
ASSETS
Real estate assets, at cost
Land $ 713,084 $ 703,850
Buildings and improvements 4,144,075 4,108,955
------------------------
4,857,159 4,812,805
Accumulated depreciation (788,318) (799,624)
------------------------
Net operating real estate assets 4,068,841 4,013,181
Properties under development, including land 454,617 410,002
Investments in joint ventures 12,722 8,321
Properties held for sale, including land 72,577 32,879
------------------------
Total real estate assets 4,608,757 4,464,383
Accounts receivable - affiliates 35,341 34,854
Notes receivable
Affiliates 45,560 43,507
Other 11,565 11,565
Other assets, net (a) 136,524 118,329
Cash and cash equivalents 3,058 1,470
Restricted cash 20,053 5,772
------------------------
Total assets $4,860,858 $4,679,880
========================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Notes payable
Unsecured $2,065,175 $1,897,865
Secured 566,001 568,731
Accounts payable and accrued expenses 128,892 110,486
Accrued real estate taxes 29,785 16,036
Other liabilities (b) 115,547 110,684
Distributions payable 44,982 45,137
------------------------
Total liabilities 2,950,382 2,748,939
Commitments and contingencies
Minority interests
Perpetual preferred units 97,925 97,925
Common units 105,353 102,217
Other minority interests 10,916 10,335
------------------------
Total minority interests 214,194 210,477
Shareholders' equity
Common shares of beneficial interest 654 654
Additional paid-in capital 2,204,525 2,199,713
Distributions in excess of net income (241,711) (243,786)
Employee notes receivable (1,976) (2,025)
Treasury shares, at cost (265,210) (234,092)
Other comprehensive loss (c) - -
------------------------
Total shareholders' equity 1,696,282 1,720,464
------------------------
Total liabilities and shareholders' equity $4,860,858 $4,679,880
========================
(a) includes:
net deferred charges of: $ 11,565 $ 9,724
value of in place leases of: $ 1,091 $ 61
(b) includes:
deferred revenues of: $ 2,937 $ 3,321
above/below market leases of: $ 43 $ 8
distributions in excess of investments in
joint ventures of: $ 19,549 $ 18,805
fair value adjustment of derivative
instrument: - -
(c) Represents the fair value adjustment of
the derivative instrument.
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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 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 to FFO is provided below:
Three Months Ended
March 31,
------------------
2008 2007
------------------
Net income $14,915 $13,037
Real estate depreciation and amortization from
continuing operations 41,921 38,338
Real estate depreciation from discontinued
operations 17 1,268
Adjustments for unconsolidated joint ventures 1,539 1,086
Income from continuing operations allocated to
common units 1,156 736
Income from discontinued operations allocated to
common units - 270
(Gain) loss on sale of operating properties, net of
taxes (1,106) 1,184
(Gain) on sale of discontinued operations (6,112) -
------------------
Funds from operations - diluted $52,330 $55,919
==================
Weighted average number of common and common
equivalent shares outstanding:
EPS diluted 55,625 59,994
FFO diluted 58,544 63,021
Net income per common share - diluted $ 0.27 $ 0.22
FFO per common share - diluted $ 0.89 $ 0.89
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 (EPS). A
reconciliation of the ranges provided for expected net income per
diluted share to expected FFO per diluted share is provided below:
2Q08 Range 2008 Range
Low High Low High
--------------- ------------------
Expected net income per share -
diluted $ 0.08 $ 0.12 $ 0.57 $ 0.77
Expected difference between EPS and
fully diluted FFO shares (0.01) (0.01) ($0.03) ($0.03)
Expected real estate depreciation 0.73 0.73 $ 2.94 $ 2.94
Expected adjustments for
unconsolidated joint ventures 0.04 0.04 $ 0.13 $ 0.13
Expected income allocated to common
units 0.03 0.03 $ 0.11 $ 0.11
Expected (gain) on sale of
properties and properties held for
sale 0.00 0.00 ($0.12) ($0.12)
--------------- ------------------
Expected FFO per share - diluted $ 0.87 $ 0.91 $ 3.60 $ 3.80
Note: This table contains forward-looking statements. Please see the
paragraph regarding forward-looking statements earlier in this
document.
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CAMDEN NON-GAAP FINANCIAL MEASURES
DEFINITIONS & RECONCILIATIONS
(In thousands, except per share amounts)
----------------------------------------------------------------------
(Unaudited)
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 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 to net operating income is provided
below:
Three Months Ended
March 31,
------------------
2008 2007
------------------
Net income $14,915 $13,037
Fee and asset management income (2,412) (2,386)
Interest and other income (1,333) (1,562)
Income on deferred compensation plans 8,541 (2,306)
Property management expense 4,900 4,728
Fee and asset management expense 1,725 1,620
General and administrative expense 7,960 8,054
Interest expense 32,661 27,790
Depreciation and amortization 42,785 39,053
Amortization of deferred financing costs 742 913
Expense on deferred compensation plans (8,541) 2,306
(Gain) loss on sale of properties, including land (1,106) -
Equity in income of joint ventures 47 (735)
Distributions on perpetual preferred units 1,750 1,750
Income allocated to common units and other minority
interests 1,269 787
Income tax expense 273 1,905
Income tax expense on sale of depreciable operating
properties - -
Income from discontinued operations (228) (2,186)
Gain on sale of discontinued operations (6,127) -
Income from discontinued operations allocated to
common units - 270
--------- --------
Net Operating Income (NOI) $97,821 $93,038
"Same Property" Communities $81,328 $80,232
Non-"Same Property" Communities 8,990 6,395
Development and Lease-Up Communities 978 (90)
Redevelopment Communities 5,886 5,969
Dispositions / Other 639 532
--------- --------
Net Operating Income (NOI) $97,821 $93,038
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 of joint
ventures, gain on sale of real estate assets, and income allocated to
minority interests. The Company considers EBITDA to be an appropriate
supplemental measure of operating performance to net income 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 to EBITDA is provided below:
Three Months Ended
March 31,
------------------
2008 2007
------------------
Net income $14,915 $13,037
Interest expense 32,775 27,911
Amortization of deferred financing costs including
discontinued operations 742 913
Depreciation and amortization 42,785 39,053
Distributions on perpetual preferred units 1,750 1,750
Income allocated to common units and other minority
interests 1,269 787
Income tax expense 273 1,905
Real estate depreciation from discontinued
operations 17 1,268
(Gain) loss on sale of properties, including land (1,106) -
Equity in income of joint ventures 47 (735)
Gain on sale of discontinued operations (6,127) -
Income from discontinued operations allocated to
common units - 270
--------- --------
EBITDA $87,340 $86,159
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Camden Property Trust, Houston
Kim Callahan, 713-354-2549
Copyright Business Wire 2008
