-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, A8YZB56q9B7hVCn6JS0/bBLcqlGnlTdoH5OwbRdasI9mjUkmJKENKbcgvK+EU5QB +j0bJ336R52JoO/iWfLcYg== 0000906345-01-500007.txt : 20010516 0000906345-01-500007.hdr.sgml : 20010516 ACCESSION NUMBER: 0000906345-01-500007 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010331 FILED AS OF DATE: 20010515 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CAMDEN PROPERTY TRUST CENTRAL INDEX KEY: 0000906345 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 766088377 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-12110 FILM NUMBER: 1636687 BUSINESS ADDRESS: STREET 1: THREE GREENWAY PLAZA STREET 2: SUITE 1300 CITY: HOUSTON STATE: TX ZIP: 77046 BUSINESS PHONE: 7139643555 MAIL ADDRESS: STREET 1: THREE GREENWAY PLZ STREET 2: SUITE 1300 CITY: HOUSTON STATE: TX ZIP: 77046 10-Q 1 q01-1qt.txt QUARTERLY REPORT SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) [x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2001 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to _________ Commission file number: 1-12110 CAMDEN PROPERTY TRUST (Exact Name of Registrant as Specified in Its Charter) TEXAS 76-6088377 (State or Other Jurisdiction of (I.R.S. Employer Identification Incorporation or Organization) Number) 3 Greenway Plaza, Suite 1300, Houston, Texas 77046 (Address of Principal Executive Offices) (Zip Code) (713) 354-2500 (Registrant's Telephone Number, Including Area Code) N/A (Former Name, Former Address and Former Fiscal Year, If Changed Since Last Report) Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NO APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: As of May 15, 2001, there were 40,588,875 shares of Common Shares of Beneficial Interest, $0.01 par value outstanding. 1 PART I. FINANCIAL INFORMATION Item 1. Financial Statements CAMDEN PROPERTY TRUST CONSOLIDATED BALANCE SHEETS (In thousands) ASSETS March 31, December 31, 2001 2000 ------------ ------------ (Unaudited) Real estate assets, at cost: Land $ 353,465 $ 350,248 Buildings and improvements 2,140,352 2,124,740 ------------ ------------ 2,493,817 2,474,988 Less: accumulated depreciation (350,520) (326,723) ------------ ------------ Net operating real estate assets 2,143,297 2,148,265 Properties under development, including land 143,525 148,741 Investment in joint ventures 22,380 22,612 ------------ ------------ Total real estate assets 2,309,202 2,319,618 Accounts receivable - affiliates 3,368 3,236 Notes receivable: Affiliates 1,800 1,800 Other 80,152 72,893 Other assets, net 25,192 23,923 Cash and cash equivalents 4,125 4,936 Restricted cash 4,538 4,475 ------------ ------------ Total assets $ 2,428,377 $ 2,430,881 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Notes payable: Unsecured $ 826,947 $ 799,026 Secured 325,748 339,091 Accounts payable 10,982 13,592 Accrued real estate taxes 12,503 26,781 Accrued expenses and other liabilities 41,029 36,981 Distributions payable 31,080 28,900 ------------ ------------ Total liabilities 1,248,289 1,244,371 Minority Interests: Units convertible into perpetual preferred shares 149,815 149,815 Units convertible into common shares 59,961 60,562 ------------ ------------ Total minority interests 209,776 210,377 7.33% Convertible Subordinated Debentures 14 1,950 Shareholders' Equity: Convertible preferred shares of beneficial interest 42 42 Common shares of beneficial interest 451 450 Additional paid-in capital 1,320,052 1,312,323 Distributions in excess of net income (161,469) (153,972) Unearned restricted share awards (10,798) (6,680) Less: treasury shares, at cost (177,980) (177,980) ------------ ------------ Total shareholders' equity 970,298 974,183 ------------ ------------ Total liabilities and shareholders' equity $ 2,428,377 $ 2,430,881 ============ ============ See Notes to Consolidated Financial Statements. 2 CAMDEN PROPERTY TRUST CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share amounts) Three Months Ended March 31, ------------------------ 2001 2000 ----------- ----------- Revenues Rental income $ 92,210 $ 89,518 Other property income 6,951 6,363 ----------- ----------- Total property income 99,161 95,881 Equity in income of joint ventures 2,696 257 Fee and asset management 1,543 1,709 Other income 1,954 867 ----------- ----------- Total revenues 105,354 98,714 ----------- ----------- Expenses Property operating and maintenance 28,159 27,706 Real estate taxes 10,066 9,990 General and administrative 3,283 3,139 Impairment provision for technology investments 1,090 Interest 17,143 16,584 Depreciation and amortization 24,496 24,599 ----------- ----------- Total expenses 84,237 82,018 ----------- ----------- Income before gain on sales properties and minority interests 21,117 16,696 Gain on sales of properties 1,716 1,933 ----------- ----------- Income before minority interests 22,833 18,629 Income allocated to minority interests Distributions on units convertible into perpetual preferred shares (3,218) (3,218) Income allocated to units convertible into common shares (1,071) (392) ----------- ----------- Total income allocated to minority interests (4,289) (3,610) ----------- ----------- Net income 18,544 15,019 Preferred share dividends (2,343) (2,343) ----------- ----------- Net income to common shareholders $ 16,201 $ 12,676 =========== =========== Basic earnings per share $ 0.43 $ 0.33 Diluted earnings per share $ 0.41 $ 0.31 Distributions declared per common share $ 0.610 $ 0.5625 Weighted average number of common shares outstanding 37,975 38,492 Weighted average number of common and common dilutive equivalent shares outstanding 39,570 41,575 See Notes to Consolidated Financial Statements. 3 CAMDEN PROPERTY TRUST CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands)
Three Months Ended March 31, ------------------------ 2001 2000 ----------- ----------- CASH FLOW FROM OPERATING ACTIVITIES Net income $ 18,544 $ 15,019 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 24,496 24,599 Equity in income of joint ventures, net of cash received 791 501 Gain on sale of properties (1,716) (1,933) Income allocated to units convertible into common shares 1,071 392 Accretion of discount on unsecured notes payable 119 98 Net change in operating accounts (7,741) (10,186) ----------- ----------- Net cash provided by operating activities 35,564 28,490 CASH FLOW FROM INVESTING ACTIVITIES Increase in real estate assets (18,855) (38,484) Net proceeds from sale of properties 6,549 20,056 Increase in investment in joint ventures (559) Increase in notes receivable (7,259) (9,058) Other (2,129) (377) ----------- ----------- Net cash used in investing activities (22,253) (27,863) CASH FLOW FROM FINANCING ACTIVITIES Net (decrease) increase in unsecured lines of credit and short-term borrowings (70,000) 37,000 Proceeds from notes payable 197,802 Proceeds from issuance of preferred units, net 17,136 Repayment of notes payable (113,343) (1,242) Distributions to shareholders and minority interests (28,544) (27,101) Repurchase of common shares and units (26,306) Other (37) 53 ----------- ----------- Net cash used in financing activities (14,122) (460) ----------- ----------- Net (decrease) increase in cash and cash equivalents (811) 167 Cash and cash equivalents, beginning of period 4,936 5,517 ----------- ----------- Cash and cash equivalents, end of period $ 4,125 $ 5,684 =========== =========== SUPPLEMENTAL INFORMATION Cash paid for interest, net of interest capitalized $ 11,722 $ 15,078 Interest capitalized 3,103 4,162 SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES Conversion of 7.33% subordinated debentures to common shares, net $ 1,936 $ 629 Value of shares issued under benefit plans, net 5,039 4,759 Conversion of operating partnership units to common shares 90
See Notes to Consolidated Financial Statements. 4 CAMDEN PROPERTY TRUST Notes to Consolidated Financial Statements (Unaudited) 1. Interim Unaudited Financial Information The accompanying interim unaudited financial information has been prepared according to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted according to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments and eliminations, consisting only of normal recurring adjustments, necessary to present fairly the financial position of Camden Property Trust as of March 31, 2001 and the results of operations and cash flows for the three months ended March 31, 2001 and 2000 have been included. The results of operations for such interim periods are not necessarily indicative of the results for the full year. Business Camden Property Trust is a real estate company with activities related to the ownership, development, construction and management of multifamily apartment communities in the Southwest, Southeast, Midwest and Western regions of the United States. At March 31, 2001, we owned interests in, operated or were developing 146 multifamily properties containing 52,318 apartment homes located in nine states. Three of our multifamily properties containing 1,538 apartment homes were under development at March 31, 2001. One of our newly developed multifamily properties containing 322 apartment homes was in lease-up at March 31, 2001. Additionally, we have several sites which we intend to develop into multifamily apartment communities. Property Update During the first quarter of 2001, stabilization occurred at the following two properties totaling 924 apartment homes: The Park at Oxmoor in Louisville and The Park at Lee Vista in Orlando. We consider a property stabilized once it reaches 90% occupancy, or generally one year from opening the leasing office, with some allowances for larger than average properties. Additionally, construction continued at three properties totaling 1,538 apartment homes: The Park at Farmers Market, Phase I in Dallas, The Park at Crown Valley in Mission Viejo and Camden Harbour View in Long Beach. We have begun leasing at the Dallas and Mission Viejo properties, and are expected to begin leasing during the third quarter of 2002 at the property in Long Beach. Dispositions during the first quarter of 2001 included one parcel of land totaling 15.2 acres located in Houston and two operating properties with a total of 556 apartment homes located in North Carolina. The proceeds from the land sale totaled $6.4 million and were used to reduce indebtedness outstanding under our unsecured line of credit. The operating properties were held through a joint venture and the gains from these dispositions, totaling $2.6 million, are included in "Equity in income of joint ventures". Real Estate Assets at Cost We capitalized $4.1 million and $6.7 million in the three months ended March 31, 2001 and 2000, respectively, of renovation and improvement costs which we believe extended the economic lives and enhanced the earnings of our multifamily properties. 5 Property Operating and Maintenance Expenses Property operating and maintenance expenses included normal repairs and maintenance totaling $6.9 million for the three months ended March 31, 2001, compared to $7.0 million for the three months ended March 31, 2000. Common Share Dividend Declaration In March 2001, we announced that our Board of Trust Managers had declared a dividend of $0.61 per share for the first quarter of 2001 which was paid on April 17, 2001 to all common shareholders of record as of March 30, 2001. We paid an equivalent amount per unit to holders of common operating partnership units. This distribution to common shareholders and holders of common operating partnership units equates to an annualized dividend rate of $2.44 per share or unit. Preferred Share Dividend Declaration In March 2001, we announced that our Board of Trust Managers had declared a quarterly dividend on our preferred shares of $0.5625 per share payable May 15, 2001 to all preferred shareholders of record as of March 30, 2001. Recent Accounting Pronouncements In June 1998, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 133, "Accounting for Derivative Instruments and Hedging Activities", which is effective for all fiscal years beginning after June 15, 2000. SFAS No. 133, as amended, establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts and for hedging activities. Under SFAS No. 133, certain contracts that were not formerly considered derivatives may now meet the definition of a derivative. We have adopted SFAS No. 133 effective January 1, 2001. The adoption of SFAS No. 133 did not have a material impact on our financial position, results of operations, or cash flows. 6 Earnings Per Share The following table presents information necessary to calculate basic and diluted earnings per share for the three months ended March 31, 2001 and 2000:
Three Months Ended March 31, ------------------------ 2001 2000 ----------- ----------- Basic earnings per share: Weighted average common shares outstanding 37,975 38,492 =========== =========== Basic earnings per share $ 0.43 $ 0.33 =========== =========== Diluted earnings per share: Weighted average common shares outstanding 37,975 38,492 Shares issuable from assumed conversion of: Common share options and awards granted 1,022 533 Units convertible into common shares 573 2,550 ----------- ----------- Weighted average common shares outstanding, as adjusted 39,570 41,575 =========== =========== Diluted earnings per share $ 0.41 $ 0.31 =========== =========== Earnings for basic and diluted computation: Net income $ 18,544 $ 15,019 Less: Preferred share dividends (2,343) (2,343) ----------- ----------- Net income to common shareholders (Basic diluted earnings per share computation) 16,201 12,676 Income allocated to operating partnership units 392 ----------- ----------- Net income to common shareholders, as adjusted (Diluted earnings per share computation) $ 16,201 $ 13,068 =========== ===========
2. Notes Receivable We have entered into agreements with unaffiliated third parties to develop, construct, and manage nine multifamily projects containing a total of 3,112 apartment homes. We are providing financing for a portion of each project in the form of notes receivable which mature through 2005. These notes earn interest at 10% annually and are secured by second liens on the assets and partial guarantees by the third party owners. We expect these notes to be repaid from operating cash flow or proceeds from the sale of the individual properties. At March 31, 2001 and 2000, these notes had principal balances totaling $78.0 million and $37.2 million, respectively, and we anticipate funding up to an aggregate of $110 million in connection with these projects. We earn fees for managing the development, construction and eventual operations of these properties. The related fees we earned for these projects totaled $249,000 and $829,000 million for the quarters ended March 31, 2001 and 2000, respectively. We have begun construction on four of these projects, and initial occupancy has begun on three of the projects. We have the option to purchase these properties in the future at a price to be determined based upon the property's performance and an agreed valuation model. 7 The following is a detail of our third party construction subject to notes receivable.
Number of Estimated Estimated/ Estimated/ Apartment Cost Actual Date Actual Date of Property and Location Homes ($ millions) of Completion Stabilization - ----------------------------------------------- --------- ------------ ------------- -------------- Stabilized Pecos Ranch Phoenix, AZ 272 $ 21 4Q00 1Q01 In lease-up Marina Pointe II Tampa, FL 352 30 1Q01 3Q01 Creekside Denver, CO 279 32 2Q01 4Q01 Under Construction Ybor City Tampa, FL 454 40 4Q01 3Q02 Pre-Development Little Italy San Diego, CA 160 32 Otay Ranch San Diego, CA 422 57 California Oaks Murietta, CA 264 35 Lee Vista II Orlando, FL 366 31 Midtown West Houston, TX 543 54 --------- ------------ Total Third Party Development 3,112 $ 332 ========= ============
3. Technology Investments During 2000, our Board of Trust Managers authorized us to invest in non-real estate initiatives, including investments in e-commerce initiatives with other multi-family real estate owners. These investments may be made in companies that will provide our residents with a broad range of real estate technology services including high-speed data, video and entertainment services, as well as resident portals. These portals will provide our residents with a variety of online services, including online rental payments and maintenance requests, which we believe will improve their overall living experience. As of March 31, 2001, we had $4.2 million invested into various e-commerce companies that will provide a broad range of internet-based services to our residents. These investments are being accounted for under the cost method and are included in other assets in our consolidated financial statements. In addition to our investments, we have $2.2 million in notes receivable from other web-based companies. During the first quarter of 2001, we expensed $1.1 million of e-commerce investments relating to BroadBand Residential Inc. The $1.1 million included a note receivable of approximately $600,000, and represented our total investment, including notes receivable, in BroadBand Residential at the time of the write-off. 8 4. Notes Payable The following is a summary of our indebtedness: (In millions)
March 31, December 31, 2001 2000 ----------- ------------ Unsecured Line of Credit and Short Term Borrowings $ 126.0 $ 196.0 Senior Unsecured Notes 6.73% - 6.76% Notes, due 2001 50.0 150.0 7.03% Notes, due 2003 50.0 50.0 7.14% Notes, due 2004 199.3 199.2 7.16% - 7.28% Notes, due 2006 173.9 124.3 7.78% Notes, due 2011 148.3 ----------- ------------ 621.5 523.5 Medium Term Notes 6.68% - 6.74% Notes, due 2002 34.5 34.5 6.88% - 7.17% Notes, due 2004 30.0 30.0 7.64% Notes, due 2009 15.0 15.0 ----------- ------------ 79.5 79.5 Secured Notes 7.00% - 8.50% Conventional Mortgage Notes, due 2003 - 2009 224.4 237.6 5.20% - 7.29% Tax-exempt Mortgage Notes, due 2007 - 2028 101.3 101.5 ----------- ------------ 325.7 339.1 ----------- ------------ Total Notes Payable $ 1,152.7 $ 1,138.1 =========== ============
We have a $400 million line of credit with a group of 14 banks which matures August 2003. The scheduled interest rate is currently based on a spread over LIBOR or Prime. The scheduled interest rates are subject to change as our credit ratings change. Advances under the line of credit may be priced at the scheduled rates, or we may enter into bid rate loans with participating banks at rates below the scheduled rates. These bid rate loans have terms of six months or less and may not exceed the lesser of $200 million or the remaining amount available under the line of credit. The line of credit is subject to customary financial covenants and limitations. At quarter end, we were in compliance with all covenants and limitations. On February 7, 2001, we issued from our $750 million shelf registration an aggregate principal amount of $50 million of 7% five-year senior unsecured notes maturing on February 15, 2006 and $150 million of 7.625% ten-year senior unsecured notes maturing on February 15, 2011. Interest on the notes is payable semiannually on February 15 and August 15, commencing on August 15, 2001. We may redeem the notes at any time at a redemption price equal to the principal amount and accrued interest, plus a make- whole provision. The notes are direct, senior unsecured obligations and rank equally with all other unsecured and unsubordinated indebtedness. The proceeds from the sale of the notes were $197.8 million, net of issuance costs. We used the net proceeds to reduce indebtedness outstanding under the unsecured line of credit. At March 31, 2001, the weighted average interest rate on floating rate debt was 5.84%. 9 5. Net Change in Operating Accounts The effect of changes in the operating accounts on cash flows from operating activities is as follows: (In thousands) Three Months Ended March 31, ---------------------- 2001 2000 ---------- ---------- Decrease (increase) in assets: Accounts receivable - affiliates $ 208 $ 167 Other assets, net 4,634 (4,379) Restricted cash (63) 318 Increase (decrease) in liabilities: Accounts payable (2,610) 2,294 Accrued real estate taxes (13,980) (12,184) Accrued expenses and other liabilities 4,070 3,598 ---------- ---------- Net change in operating accounts $ (7,741) $ (10,186) ========== ========== 6. Convertible Subordinated Debentures In April 1994, we issued $86.3 million aggregate principal amount of 7.33% Convertible Subordinated Debentures which matured April 1, 2001. The debentures were convertible at any time prior to maturity into our common shares, subject to adjustments under certain circumstances. As of March 31, 2001, $86.2 million in principal amount of the debentures had been converted to 3.6 million common shares. In addition, $3.2 million of unamortized debenture issue costs have been reclassified to additional paid-in- capital 7. Preferred Units In 1999, our operating partnership issued $100 million of 8.5% Series B Cumulative Redeemable Perpetual Preferred Units. Also during 1999 and 2000, our operating partnership issued $53 million of 8.25% Series C Cumulative Redeemable Perpetual Preferred Units. Distributions on the preferred units are payable quarterly in arrears. The preferred units are redeemable for cash by the operating partnership on or after the fifth anniversary of issuance at par plus the amount of any accumulated and unpaid distributions. The preferred units are convertible after 10 years by the holder into corresponding Cumulative Redeemable Perpetual Preferred Shares. The preferred units are subordinate to present and future debt. 8. Restricted Share and Option Awards During the first three months of 2001, we granted 239,703 restricted shares in lieu of cash compensation to certain key employees and non-employee trust managers. The restricted shares were issued based on the market value of our common shares at the date of grant and have vesting periods of up to five years. We granted no options during the quarter ended March 31, 2001. During the three month period ended March 31, 2001, previously granted options to purchase 77,041 shares became exercisable and 312,495 restricted shares vested. 10 9. Securities Repurchase Program In 1998 and 1999, the Board of Trust Managers authorized us to repurchase or redeem up to $200 million of our securities through open market purchases and private transactions. As of March 31, 2001, we had repurchased 6,857,726 common shares and redeemed 105,814 units convertible in to common shares for a total cost of $178.0 million and $2.9 million, respectively. 10. Convertible Preferred Shares The 4,165,000 preferred shares paid a cumulative dividend quarterly in arrears in an amount equal to $2.25 per share per annum. The preferred shares generally had no voting rights and had a liquidation preference of $25 per share plus accrued and unpaid distributions. The preferred shares were convertible at the option of the holder at any time into common shares at a conversion price of $32.4638 per common share (equivalent to a conversion rate of 0.7701 per common share for each preferred share), subject to adjustment in certain circumstances. The preferred shares were not redeemable prior to April 30, 2001. Subsequent to quarter end, we announced that we would redeem all of our issued and outstanding preferred shares on April 30, 2001 at a redemption price of $25.00 per share plus an amount equal to all accumulated, accrued and unpaid dividends as of April 30, 2001. Prior to redemption, 3.1 million preferred shares were converted into 2.4 million common shares. The remaining preferred shares were redeemed for an aggregate of $27.1 million using funds available under our unsecured line of credit. 11. Contingencies Prior to our merger with Oasis Residential, Inc. in April 1998, Oasis had been contacted by certain regulatory agencies with regards to alleged failures to comply with the Fair Housing Amendments Act (the "Fair Housing Act") as it pertained to nine properties (seven of which we currently own) constructed for first occupancy after March 31, 1991. On February 1, 1999, the Justice Department filed a lawsuit against us and several other defendants in the United States District Court for the District of Nevada alleging (1) that the design and construction of these properties violates the Fair Housing Act and (2) that we, through the merger with Oasis, had discriminated in the rental of dwellings to persons because of handicap. The complaint requests an order that (i) declares that the defendant's policies and practices violate the Fair Housing Act; (ii) enjoins us from (a) failing or refusing, to the extent possible, to bring the dwelling units and public use and common use areas at these properties and other covered units that Oasis has designed and/or constructed into compliance with the Fair Housing Act, (b) failing or refusing to take such affirmative steps as may be necessary to restore, as nearly as possible, the alleged victims of the defendants alleged unlawful practices to positions they would have been in but for the discriminatory conduct and (c) designing or constructing any covered multi-family dwellings in the future that do not contain the accessibility and adaptability features set forth in the Fair Housing Act; and requires us to pay damages, including punitive damages, and a civil penalty. With any acquisition, we plan for and undertake renovations needed to correct deferred maintenance, life/safety and Fair Housing matters. On January 30, 2001, a consent decree was ordered and executed in the above Justice Department action. Under the terms of the decree, we were ordered to make certain retrofits and implement certain educational programs and fair housing advertising. These changes are to take place over the next five years. In management's opinion, the costs associated with complying with the decree are not expected to have a material impact on our financial statements. 11 We are subject to various legal proceedings and claims that arise in the ordinary course of business. These matters are generally covered by insurance. While the resolution of these matters cannot be predicted with certainty, management believes that the final outcome of such matters will not have a material adverse effect on our consolidated financial statements. 12. Subsequent Events In the ordinary course of our business, we issue letters of intent indicating a willingness to negotiate for the purchase or sale of multifamily properties or development land. In accordance with the local real estate market practice, such letters of intent are non-binding, and neither party to the letter of intent is obligated to pursue the transaction unless and until a definitive contract is entered into by the parties. The letters of intent and any resulting definitive contracts provide the purchaser with time to evaluate the properties and conduct due diligence and during which periods the purchaser will have the ability to terminate the contracts without penalty or forfeiture of any deposit or earnest money. There can be no assurance that definitive contracts will be entered into with respect to any properties covered by letters of intent or that we will acquire or sell any property as to which we may have entered into a definitive contract. Further, due diligence periods are frequently extended as needed. An acquisition or sale becomes probable at the time that the due diligence period expires and the definitive contract has not been terminated. We are then at risk under an acquisition contract, but only to the extent of any earnest money deposits associated with the contract, and are obligated to sell under a sales contract. We are currently in the due diligence period on contracts for the purchase of land for development and acquisition of a property. No assurance can be made that we will complete the purchases or will be satisfied with the outcome of the due diligence. 12 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Results of Operations Overview The following discussion should be read in conjunction with all of the financial statements and notes appearing elsewhere in this report as well as the audited financial statements appearing in our 2000 Annual Report to Shareholders. Where appropriate, comparisons are made on a dollars per-weighted-average-unit basis in order to adjust for changes in the number of apartment homes owned during each period. The statements contained in this report that are not historical facts are forward-looking statements, and actual results may differ materially from those included in the forward-looking statements. These forward-looking statements involve risks and uncertainties including, but not limited to, the following: changes in general economic conditions, changes in financial markets and interest rates, our failure to qualify as a real estate investment trust ("REIT") and environmental uncertainties and natural disasters. Business Camden Property Trust is a real estate investment trust which reports as a single business segment. At March 31, 2001, we owned interests in, operated or were developing 146 multifamily properties containing 52,318 apartment homes located in nine states. Three of our multifamily properties containing 1,538 apartment homes were under development at March 31, 2001. One of our newly developed multifamily properties containing 332 apartment homes was in lease-up at March 31, 2001. Additionally, we have several sites which we intend to develop into multifamily apartment communities. Property Update During the first quarter of 2001, stabilization occurred at the following two properties totaling 924 apartment homes: The Park at Oxmoor in Louisville and The Park at Lee Vista in Orlando. We consider a property stabilized once it reaches 90% occupancy, or generally one year from opening the leasing office, with some allowances for larger than average properties. Additionally, construction continued at three properties totaling 1,538 apartment homes: The Park at Farmers Market, Phase I in Dallas, The Park at Crown Valley in Mission Viejo and Camden Harbour View in Long Beach. We have begun leasing at the Dallas and Mission Viejo properties, and are expected to begin leasing during the third quarter of 2002 at the property in Long Beach. Dispositions during the first quarter of 2001 included one parcel of land totaling 15.2 acres located in Houston and two operating properties with a total of 556 apartment homes located in North Carolina. The proceeds from the land sale totaled $6.4 million and were used to reduce indebtedness outstanding under our unsecured line of credit. The operating properties were held through a joint venture and the gains from these dispositions, totaling $2.6 million, are included in "Equity in income of joint ventures". 13 Property Portfolio Our multifamily property portfolio, excluding land held for future development is summarized as follows:
March 31, 2001 December 31, 2000 -------------------- --------------------- Apartment Apartment Homes Properties Homes Properties --------- ---------- --------- ---------- Operating Properties West Las Vegas, Nevada (a) 10,653 37 10,653 37 Denver, Colorado (a) 2,529 8 2,529 8 Phoenix, Arizona 1,837 6 1,837 6 Southern California 1,272 3 1,272 3 Tucson, Arizona 821 2 821 2 Reno, Nevada 450 1 450 1 Central Dallas, Texas (a) 8,447 23 8,447 23 Houston, Texas 7,190 16 7,190 16 St. Louis, Missouri 2,123 6 2,123 6 Austin, Texas 1,745 6 1,745 6 Corpus Christi, Texas 1,663 4 1,663 4 Kansas City, Missouri 596 1 596 1 East Tampa, Florida 5,023 11 5,023 11 Orlando, Florida 2,804 6 2,804 6 Charlotte, North Carolina (a) 1,659 6 1,879 7 Louisville, Kentucky 1,448 5 1,448 5 Greensboro, North Carolina (a) 520 2 856 3 --------- ---------- --------- ---------- Total Operating Properties 50,780 143 51,336 145 --------- ---------- --------- ---------- Properties Under Development West Southern California 918 2 918 2 Central Dallas, Texas 620 1 620 1 --------- ---------- --------- ---------- Total Properties Under Development 1,538 3 1,538 3 --------- ---------- --------- ---------- Total Properties 52,318 146 52,874 148 --------- ---------- --------- ---------- Less: Joint Venture Properties (a) 5,947 21 6,503 23 --------- ---------- --------- ---------- Total Properties Owned 100% 46,371 125 46,371 125 ========= ========== ========= ==========
(a) The figures include properties held in joint ventures as follows: one property with 708 apartment homes in Dallas (and two properties with 556 apartment homes in North Carolina at December 31, 2000) in which we own a 44% interest, the remaining interest is owned by unaffiliated private investors; one property with 320 apartment homes in Colorado in which we own a 50% interest, the remaining interest is owned by an unaffiliated private investor; and 19 properties with 4,919 apartment homes in Nevada in which we own a 20% interest, the remaining interest is owned by an unaffiliated private pension fund 14 At March 31, 2001, we had one completed property under lease-up as follows:
Number of Estimated Product Apartment % Leased Date of Date of Property and Location Type Homes at 5/1/01 Completion Stabilization - ------------------------------ ------- --------- --------- ---------- ------------- The Park at Arizona Center Phoenix, AZ Urban 332 83% 1Q00 3Q01
At March 31, 2001, we had three development properties in various stages of construction as follows:
Number of Estimated Product Apartment % Leased Date of Date of Property and Location Type Homes at 5/1/01 Completion Stabilization - --------------------------------------------- ------- --------- --------- ---------- ------------- In Lease-Up The Park at Farmers Market, Phase I Dallas, TX Urban 620 $ 59.9 2Q01 4Q01 The Park at Crown Valley Mission Viejo, CA Garden 380 58.5 3Q01 4Q01 Under Construction Camden Harbour View Long Beach, CA Urban 538 120.0 2Q03 2Q04 ------- --------- --------- ---------- ------------- Total for three development properties 1,538 $ 238.4 ========= =========
We stage our construction to allow leasing and occupancy during the construction period which we believe minimizes the duration of the lease-up period following completion of construction. Our accounting policy related to properties in the development and leasing phase is that all operating expenses, excluding depreciation, associated with occupied apartment homes are expensed against revenues generated by those apartment homes as they become occupied. All construction and carrying costs are capitalized and reported on the balance sheet in "Properties under development, including land" until individual buildings are completed. Upon completion of each building, the total cost of that building and the associated land is transferred to "Land" and "Buildings and improvements" and the assets are depreciated over their estimated useful lives using the straight-line method of depreciation. Upon achieving 90% occupancy, or generally one year from opening the leasing office (with some allowances for larger than average properties), whichever occurs first, all apartment homes are considered operating and we begin expensing all items that were previously considered as carrying costs. Properties under development in our consolidated financial statements includes $90.7 million related to the development of three urban land projects located in Dallas, Houston and Long Beach, California. Of this amount, $38.2 million relates to two of our current development projects - The Park at Farmers Market in Dallas and Camden Harbour View in Long Beach. We have an additional $24.0 million invested in Dallas, which we may use for the future development of Farmers Market, Phase II, and we are also in the construction phase of for-sale townhomes in this area. We have $28.5 million invested in additional land under development in Houston and Long Beach. We are currently in the planning phase with respect to these properties to determine whether to further develop apartment homes in these areas. We may also sell certain parcels of all three properties to third parties for commercial and retail development. 15 Comparison of the Quarter Ended March 31, 2001 and March 31, 2000 Earnings before interest, depreciation and amortization increased $4.9 million, or 8.4%, from $57.9 million to $62.8 million for the three months ended March 31, 2000 and 2001, respectively. The weighted average number of apartment homes for the first quarter of 2001 decreased by 1,877 apartment homes, or 4.2%, from 46,915 to 45,038. Total operating properties were 122 and 133 at March 31, 2001 and 2000, respectively. The 45,038 weighted average apartment homes and the 122 operating properties exclude the impact of our ownership interest in properties owned in joint ventures. Our apartment communities generate rental revenue and other income through the leasing of apartment homes. Revenues from our rental operations comprised 94% and 97% of our total revenues for the quarters ended March 31, 2001 and 2000, respectively. The decrease in rental revenue as a percent of total revenue is due to the increase in Equity in income of joint ventures, which increased as a result of gains recognized from the sale of two properties held in a joint venture. Our primary financial focus for our apartment communities is net operating income. Net operating income represents total property revenues less property operating and maintenance expenses, including real estate taxes. Net operating income increased $2.8 million, or 4.7%, from $58.2 million to $60.9 million for the quarters ended March 30, 2000 and 2001, respectively. Rental income for the quarter ended March 31, 2001 increased $2.7 million, or 3.0%, over the quarter ended March 31, 2000. Rental income per apartment home per month increased $46 or 7.2%, from $636 to $682 for the first quarters of 2000 and 2001, respectively. The increase was primarily due to increased revenue growth from the stabilized real estate portfolio and higher average rental rates on the completed development properties. Additionally, properties sold in 2000 had average rental rates which were significantly lower than the portfolio average. Overall average occupancy increased from 93.0% for the quarter ended March 31, 2000 to 94.7% for the quarter ended March 31, 2001. Other property income increased $588,000 from $6.4 million to $7.0 million for the three months ended March 31, 2000 and 2001, respectively, which represents a monthly increase of $6 per apartment home. The increase in other property income was due primarily to increases from revenue sources such as telephone, cable and water. Equity in income of joint ventures increased $2.4 million over the first quarter 2000, primarily from gains recognized in one of our joint ventures from the sale of two properties totaling 556 apartment homes. Other income increased $1.1 million for the quarter ended March 31, 2001 compared to the same period in 2000. This increase was due to interest earned on our third party construction notes receivable. Property operating and maintenance expenses increased $450,000, or 1.6%, from $27.7 million for the quarter ended March 31, 2000 to $28.2 million for the quarter ended March 31, 2001. On an annualized basis, property operating and maintenance expenses increased $137 per unit, or 6.7%. This increase is primarily due to increases in salary and benefit expenses per unit, as well as an increase in property insurance costs. Property operating and maintenance expenses as a percent of total property income decreased from 28.9% to 28.4% for the quarters ended March 31, 2000 and 2001, respectively. Our operating expense ratios decreased primarily as a result of operating efficiencies generated by our newly developed properties. Also, the operating expense ratios for the properties sold in 2000 were higher than the portfolio average. Real estate taxes increased $75,000 from $10.0 million to $10.1 million for the first quarters of 2000 and 2001, respectively, which represents an annual increase of $42 per apartment home. The increase was primarily due to increases in the valuations of renovated and developed properties and increases in property tax rates. 16 General and administrative expenses increased $144,000 from $3.1 million to $3.3 million, but decreased as a percent of revenues from 3.2% to 3.1% for the quarters ended March 31, 2000 and 2001 respectively. Interest expense increased from $16.6 million to $17.1 million primarily due to interest on new development and funding of third party construction notes receivable. Interest capitalized was $3.1 million and $4.2 million for the quarters ended March 31, 2001 and 2000, respectively. Depreciation and amortization decreased from $24.6 million to $24.5 million. This decrease was due primarily to the sale of eleven properties in the third quarter of 2000, offset by new development and capital improvements. During the first quarter of 2001, we expensed $1.1 million of e-commerce investments relating to BroadBand Residential Inc. The $1.1 million included a note receivable of approximately $600,000, and represented our total investment, including notes receivable, in BroadBand Residential at the time of the write-off. Gains on sale of properties for the quarter ended March 31, 2001 totaled $1.7 million due to the sale of 15.2 acres of undeveloped land located in Houston. Gains on sales of properties of $1.9 million for the quarter ended March 31, 2000 related to the sale of a mini-storage facility in Las Vegas and the sale of approximately 61 acres of undeveloped land located in Las Vegas, Dallas and Houston. Liquidity and Capital Resources Financial Structure We intend to continue maintaining what management believes to be a conservative capital structure by: (i) using what management believes is a prudent combination of debt and common and preferred equity; (ii) extending and sequencing the maturity dates of our debt where possible; (iii) managing interest rate exposure using fixed rate debt and hedging where management believes it is appropriate; (iv) borrowing on an unsecured basis in order to maintain a substantial number of unencumbered assets; and (v) maintaining conservative coverage ratios. The interest expense coverage ratio, net of capitalized interest, was 3.7 and 3.5 times for the three months ended March 31, 2001 and 2000, respectively. At March 31, 2001 and 2000, 76.7% and 76.1%, respectively, of our properties (based on invested capital) were unencumbered. Liquidity We intend to meet our short-term liquidity requirements through cash flows provided by operations, our unsecured line of credit discussed in the financial flexibility section and other short-term borrowings. We expect that our ability to generate cash will be sufficient to meet our short-term liquidity needs, which include: (i) normal operating expenses; (ii) current debt service requirements; (iii) recurring capital expenditures; (iv) property developments; (v) common share repurchases; and (vi) distributions on our common and preferred equity. 17 We consider our long-term liquidity requirements to be the repayment of maturing secured debt and borrowings under our unsecured line of credit and funding of acquisitions. We intend to meet our long-term liquidity requirements through the use of common and preferred equity capital, senior unsecured debt and property dispositions. We intend to concentrate our growth efforts toward selective development and acquisition opportunities in our current markets, and through the acquisition of existing operating portfolios and the development of properties in selected new markets. During the three months ended March 31, 2000, we incurred $15.1 million in development costs and no acquisition costs. We are developing three properties at an aggregate cost of approximately $238.4 million, $132.0 million of which was incurred through March 31, 2001. We intend to fund our developments and acquisitions through a combination of equity capital, partnership units, medium-term notes, construction loans, other debt securities and the unsecured line of credit. We also seek to selectively dispose of assets that management believes have a lower projected net operating income growth rate than the overall portfolio, or no longer conform to our operating and investment strategies. Additionally, over the next three years, we will continue rebalancing our portfolio with the goal of limiting any one market to no more than 12% of total real estate assets. We expect that any such sales should generate capital for acquisitions and new developments or for debt reduction. During the first quarter of 2000 we sold 15.2 acres of undeveloped land located in Houston. Net proceeds from these sales were approximately $6.4 million. We used the proceeds to reduce indebtedness outstanding under our unsecured line of credit. Net cash provided by operating activities totaled $35.6 million for the quarter ended March 31, 2001, an increase of $7.1 million, or 24.8%, over the same period in 2000. This increase was attributable to a $2.8 million increase in net operating income from the real estate portfolio for the quarter ended March 31, 2001 as compared to the same period in 2000, and an increase of $680,000 in income allocated to units convertible into common shares due to the sale of two properties held in a joint venture. Also, other assets increased $1.3 million, primarily from increases in technology investments. Net cash used in investing activities totaled $22.3 million for the quarter ended March 31, 2001 compared to $27.9 million for the same period in 2000. Total real estate assets, before accumulated depreciation, increased $13.6 million for the quarter ended March 31, 2001, compared to $18.5 million for the quarter ended March 31, 2000. For the quarter ended March 31, 2001, net cash flows provided by investing activities related to $6.5 million in net proceeds received from property dispositions. This increase in cash was offset by expenditures for property development and capital improvements totaling $15.1 million and $4.1 million, respectively for the quarter ended March 31, 2001. For the quarter ended March 31, 2000, expenditures for property development and capital improvements were $30.4 million and $6.7 million, respectively. Additionally, we received $20.1 million in net proceeds for property dispositions during the quarter ended March 31, 2000. Net cash used in financing activities totaled $14.1 million for the quarter ended March 31, 2001 compared to $460,000 for the quarter ended March 31, 2000. During the quarter ended March 31, 2001, we paid distributions totaling $28.5 million. We also received proceeds totaling $197.8 million from the issuance of senior unsecured notes. The proceeds from these issuances were used to pay down borrowings under our line of credit and repay notes payable, which decreased $70.0 million and $113.3 million, respectively, for the quarter ended March 31, 2001. During the quarter ended March 31, 2000, we paid $27.1 million for distributions and repurchased $26.3 million common shares and units convertible into common shares. These payments were funded by the increase in borrowings 18 under our line of credit of $37.0 million. Additionally, during the quarter ended March 31, 2000, we received proceeds of $17.1 million from the issuance of preferred units. In 1998, we began repurchasing our securities under a program approved by our Board of Trust Managers. The plan allows us to repurchase or redeem up to $200 million of our securities through open market purchases and private transactions. Management consummates these repurchases and redemptions at the time when they believe that we can reinvest available cash flow into our own securities at yields which exceed those currently available on direct real estate investments. These repurchases were made and we expect that future repurchases, if any, will be made without incurring additional debt and, in management's opinion, without reducing our financial flexibility. At March 31, 2001, we had repurchased approximately 6.9 million common shares and redeemed approximately 106,000 units at a total cost of $180.9 million. In March 2001, we announced that our Board of Trust Managers had declared a dividend in the amount of $0.61 per share for the first quarter of 2001 which was paid on April 17, 2001 to all common shareholders of record as of March 30, 2001. We paid an equivalent amount per unit to holders of the common operating partnership units. This distribution to common shareholders and holders of common operating partnership units equates to an annualized dividend rate of $2.44 per share or unit. In March 2001, we declared a quarterly dividend on our preferred shares in the amount of $0.5625 per share payable May 15, 2001 to all preferred shareholders of record as of March 30, 2001. Subsequent to quarter end, we announced that we would redeem all of our issued and outstanding preferred shares on April 30, 2001 at a redemption price of $25.00 per share plus an amount equal to all accumulated, accrued and unpaid dividends as of April 30, 2001. Prior to redemption, 3.1 million preferred shares were converted into 2.4 million common shares. The remaining preferred shares were redeemed for an aggregate of $27.1 million using funds available under our unsecured line of credit. As of March 31, 2001, we had senior unsecured debt totaling $826.9 million and secured mortgage loans totaling $325.8 million. Our indebtedness, excluding our unsecured line of credit, has a weighted average maturity of 6.6 years as of March 31, 2001. Scheduled principal repayments on all notes payable outstanding at March 31, 2001 is as follows: (In thousands) Year Amount ---- ----------- 2001 $ 54,056 2002 40,216 2003 251,247 2004 235,044 2005 61,677 2006 and thereafter 510,455 ----------- Total $ 1,152,695 =========== The scheduled principal repayments in 2001 include $50.0 million senior unsecured notes, which were issued in November 1996 and which we expect to repay from the unsecured line of credit. Financial Flexibility We have a $400 million line of credit with a group of 14 banks which matures August 2003. The scheduled interest rate on the line of credit is 19 currently based on a spread over LIBOR or Prime. The scheduled interest rates are subject to change as our credit ratings change. Advances under the line of credit may be priced at the scheduled rates, or we may enter into bid rate loans with participating banks at rates below the scheduled rates. These bid rate loans have terms of nine months or less and may not exceed the lesser of $200 million or the remaining amount available under the line of credit. The line of credit is subject to customary financial covenants and limitations. As an alternative to our unsecured line of credit, we from time to time borrow using competitively bid unsecured short-term notes with lenders who may or may not be a part of the unsecured line of credit bank group. Such borrowings vary in term and pricing and are typically priced at interest rates comparable to or below those available under the unsecured line of credit. As of March 31, 2001, we had $274 million available under the unsecured line of credit and $550 million available under our universal shelf registration. We have significant unencumbered real estate assets which could be sold or used as collateral for financing purposes should other sources of capital not be available. On February 7, 2001, we issued from our $750 million shelf registration an aggregate principal amount of $50 million of 7% five-year senior unsecured notes maturing on February 15, 2006 and $150 million of 7.625% ten-year senior unsecured notes maturing on February 15, 2011. Interest on the notes is payable semiannually on February 15 and August 15, commencing on August 15, 2001. We may redeem the notes at any time at a redemption price equal to the principal amount and accrued interest, plus a make-whole provision. The notes are direct, senior unsecured obligations and rank equally with all other unsecured and unsubordinated indebtedness. The proceeds from the sale of the notes were $197.8 million, net of issuance costs. We used the net proceeds to reduce indebtedness outstanding under the unsecured line of credit. At March 31, 2001, the weighted average interest rate on floating rate debt was 5.84%. Funds from Operations Management considers FFO to be an appropriate measure of performance of an equity REIT. The National Association of Real Estate Investment Trusts currently defines FFO as net income (computed in accordance with generally accepted accounting principles), excluding gains (or losses) from debt restructuring and sales of property, plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Our definition of diluted FFO assumes conversion at the beginning of the period of all dilutive convertible securities, including minority interests, which are convertible into common equity. We believe that in order to facilitate a clear understanding of our consolidated historical operating results, FFO should be examined in conjunction with net income as presented in the consolidated financial statements and data included elsewhere in this report. FFO is not defined by generally accepted accounting principles. FFO 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. Further, FFO as disclosed by other REITs may not be comparable to our calculation. Our diluted FFO for the quarter ended March 31, 2001 increased $2.0 million over the quarter ended March 31, 2000. On a per share basis, diluted FFO for the quarter ended March 31, 2001 increased approximately 5.9% over the same period in 2000. The increase in diluted FFO was primarily due to a $2.8 million increase in net operating income from our real estate portfolio for the quarter ended March 31, 2001 compared to the same period in 2000. 20 The calculation of basic and diluted FFO for the three months ended March 31, 2001 and 2000 follows: (In thousands)
Three Months Ended March 31, ---------------------- 2001 2000 ---------- ---------- Funds from operations: Net income to common shareholders $ 16,201 $ 12,676 Real estate depreciation 23,807 23,802 Adjustments for unconsolidated ventures 972 809 Gain on sales of properties held in unconsolidated ventures (2,567) Gain on sales of properties (1,716) (1,933) ---------- ---------- Funds from operations - basic 36,697 35,354 Preferred share dividends 2,343 2,343 Income allocated to operating partnership units 1,071 392 Interest on convertible subordinated debentures 33 44 Amortization of deferred costs on convertible debentures 1 6 ---------- ---------- Funds from operations - diluted $ 40,145 $ 38,139 ========== ========== Weighted average shares - basic 37,975 38,492 Common share options and awards granted 1,022 533 Preferred shares 3,207 3,207 Minority interest units 2,539 2,550 Convertible subordinated debentures 79 127 ---------- ---------- Weighted average shares - diluted 44,822 44,909 ========== ==========
Inflation We lease apartments under lease terms generally ranging from six to thirteen months. Management believes that such short-term lease contracts lessen the impact of inflation due to our ability to adjust rental rates to market levels as leases expire. Impact of New Accounting Pronouncements In June 1998, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 133, "Accounting for Derivative Instruments and Hedging Activities", which is effective for all fiscal years beginning after June 15, 2000. SFAS No. 133, as amended, establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts and for hedging activities. Under SFAS No. 133, certain contracts that were not formerly considered derivatives may now meet the definition of a derivative. We have adopted SFAS No. 133 effective January 1, 2001. The adoption of SFAS No. 133 did not have a material impact on our financial position, results of operations, or cash flows. Item 3. Quantitative and Qualitative Disclosures About Market Risk No material changes have occurred since our Annual Report on Form 10-K for the year ended December 31, 2000. 21 PART II. OTHER INFORMATION Item 1. Legal Proceedings None Item 2. Changes in Securities and Use of Proceeds None Item 3. Defaults Upon Senior Securities None Item 4. Submission of Matters to a Vote of Security Holders None Item 5. Other Information None Item 6. Exhibits and Reports on Form 8-K (a) Exhibits None (b) Reports on Form 8-K Current report on Form 8-K dated February 12, 2001 and filed with the Commission on February 20, 2001, contained information under Item 5 (Other Events) and Item 7 (Financial Statements, Pro Forma Financial Information and Exhibits). 22 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on our behalf by the undersigned thereunto duly authorized. CAMDEN PROPERTY TRUST /s/ G. Steven Dawson May 15, 2001 - ----------------------------------------- ------------------------ G. Steven Dawson Date Sr. Vice President of Finance, Chief Financial Officer and Treasurer /s/ Dennis M. Steen May 15, 2001 - ----------------------------------------- ------------------------ Dennis M. Steen Date Vice President - Controller and Chief Accounting Officer -----END PRIVACY-ENHANCED MESSAGE-----