EX-99.1 3 exh99_7-29.htm FORM 8-K - 99.1 PRESS RELEASED DATED 07-29-03

EXHIBIT 99.1



CAMDEN PROPERTY TRUST ANNOUNCES
SECOND QUARTER 2003 OPERATING RESULTS

Houston, TEXAS (July 29, 2003) – Camden Property Trust (NYSE: CPT) announced that its funds from operations (“FFO”) for the second quarter of 2003 totaled $0.74 per diluted share or $31.7 million, as compared to $0.83 per diluted share or $37.5 million reported for the same period in 2002. On a year-to-date basis, Camden’s six-month FFO totaled $1.49 per diluted share or $64.0 million in 2003, compared to $1.73 per diluted share or $77.6 million in 2002. Net income (“EPS”) for the second quarter of 2003 was $0.14 per diluted share compared to $0.28 per diluted share for the same period in 2002. For the six months ended June 30, 2003, EPS totaled $0.35 per diluted share compared to $0.60 per diluted share in 2002. A reconciliation of net income to FFO is included in the financial tables accompanying this press release.

Physical occupancy levels averaged 92.4% during the second quarter of 2003 as compared to 91.4% in the first quarter of 2003 and 92.1% in the second quarter of 2002. For the 42,137 apartment homes included in “same-property” results, second quarter 2003 revenues decreased 1.3% while operating expenses increased 1.3%, producing a 3.0% decline in same-property net operating income (“NOI”) compared to the second quarter of 2002. On a sequential basis, second quarter 2003 same property NOI increased 1.5% compared to first quarter 2003, with revenues increasing 2.5% and expenses increasing 4.2% compared to the prior quarter. On a year-to-date basis, 2003 same property NOI declined 5.9%, with a revenue decrease of 2.4% and expense growth of 3.4% compared to the same period in 2002. 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.

The Company completed lease-ups at Camden Ybor City in Tampa, FL and Camden Vineyards in Murrieta, CA during the quarter, and those properties are currently 94% and 95% occupied respectively. Construction was completed at Camden Oak Crest in Houston, TX during the quarter, and the community is currently 68% leased and 62% occupied. At quarter-end, Camden had three additional communities under construction, with lease-ups underway at all three projects. Camden Sierra at Otay Ranch in San Diego, CA is currently 76% leased and 71% occupied; construction should be completed during the third quarter of 2003. Camden Tuscany in San Diego, CA is currently 77% leased and 64% occupied; construction should be completed by the end of the third quarter of 2003. Camden Harbor View in Long Beach, CA is currently 21% leased and 18% occupied; construction should be completed by the end of the first quarter of 2004.

Management expects EPS for the third quarter of 2003 to be between $0.11 and $0.15 per diluted share, and FFO to be between $0.74 and $0.78 per diluted share. EPS for 2003 is expected to be between $0.66 and $0.72 per diluted share, and FFO



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is expected to be between $3.07 and $3.13 per diluted share. For 2003, 12 research analysts have contributed FFO estimates on CPT to First Call ranging from $3.02 to $3.11 per diluted share, for a consensus average of $3.07 per diluted share. Camden updates 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.

The Company will hold a conference call on Wednesday, July 30, 2003 at 9:00 AM CDT to review its second quarter results and discuss its outlook for future performance. To participate in the call, please dial (888) 689-4517 by 8:50 AM CDT, 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 or by calling Camden’s Investor Relations Department at (800) 922-6336.

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.

Camden Property Trust is a real estate company engaged in the ownership, development, acquisition, management and disposition of multifamily apartment communities.  Camden owns interests in and operates 142 properties containing 50,762 apartment homes in the Sunbelt and Midwestern markets from Florida to California.  Upon completion of three properties under development, the Company’s portfolio will increase to 51,882 apartment homes in 145 properties.

For additional information, please contact Camden’s Investor Relations Department at (800) 922-6336 or (713) 354-2787 or access our website at http://www.camdenliving.com.  



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OPERATING RESULTS
(In thousands, except per share and property data amounts)


(Unaudited) Three Months Ended
June 30, 		Six Months Ended
June 30,
OPERATING DATA 2003 2002 2003 2002
Revenues          
Rental income  $   91,486   $   91,185   $ 181,494   $ 181,272  
Other property income  8,634   7,693   16,044   14,917  
   Total property income  100,120   98,878   197,538   196,189  
Development and construction fees  1,257   1,088   2,593   2,160  
Management fees  431   429   865   893  
Other income  1,033   1,358   2,645   4,208  
   Total revenues  102,841   101,753   203,641   203,450  
 
Expenses  
Property operating and maintenance  29,462   28,216   57,544   52,961  
Real estate taxes  11,081   10,433   22,245   20,768  
Property management  2,424   2,326   4,961   4,721  
Fee and asset mangement  1,068   340   2,631   1,042  
General and administrative  4,437   3,212   8,048   6,297  
Other expenses  312   --   1,389   1,178  
Interest  18,519   17,483   36,875   34,587  
Depreciation and amortization  27,056   25,113   53,611   50,632  
   Total expenses  94,359   87,123   187,304   172,186  
Income from continuing operations before gain on sale of properties,  8,482   14,630   16,337   31,264  
   equity in income of joint ventures and minority interests 
Gain on sale of properties  659   284   2,082   284  
Equity in income of joint ventures  505   128   3,148   353  
Income allocated to minority interests 
   Distributions on units convertible into perpetual preferred shares  (3,218 ) (3,218 ) (6,436 ) (6,436 )
   Income allocated to units convertible into common shares  (520 ) (477 ) (889 ) (931 )
Income from continuing operations  5,908   11,347   14,242   24,534  
   Income from discontinued operations  --   770   --   1,565  
Net income  $     5,908   $   12,117   $   14,242   $   26,099  
FUNDS FROM OPERATIONS  
  Net income  $     5,908   $   12,117   $   14,242   $   26,099  
  Real estate depreciation from continuing operations  25,896   24,099   51,285   48,700  
  Real estate depreciation from discontinued operations  --   531   --   1,069  
  Adjustments for unconsolidated joint ventures  524   549   1,059   1,113  
  (Gain) on sale of properties  (659 ) (284 ) (2,082 ) (284 )
  (Gain) on sale of properties held in joint ventures  (451 ) --   (1,436 ) (37 )
  Income allocated to units convertible into common shares  520   477   889   931  
     Funds from operations - diluted  $   31,738   $   37,489   $   63,957   $   77,591  
PER SHARE DATA  
  Net income - basic  $       0.15   $       0.30   $       0.36   $       0.64  
  Net income - diluted  0.14   0.28   0.35   0.60  
  Funds from operations - diluted  0.74   0.83   1.49   1.73  
  Cash distributions  0.64   0.64   1.27   1.27  
 
Weighted average number of common and
     common equivalent shares outstanding: 		 
     Basic  39,218   41,061   39,191   40,944  
     Diluted  41,169   45,051   41,019   44,851  
     FFO - diluted  43,047   45,051   42,900   44,851  
 
PROPERTY DATA  
  Total operating properties (end of period) *  142   146   142   146  
  Total operating apartment homes in operating properties (end of period) *  50,762   52,175   50,762   52,175  
  Total operating apartment homes (weighted average)  46,218   46,659   46,065   46,265  
  Total operating apartment homes - excluding discontinued operations 
     (weighted average)  46,218   45,335   46,065   44,941  


* Includes joint venture investments.

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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BALANCE SHEETS
(In thousands)


(Unaudited) Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,
  2003 2003 2002 2002 2002
ASSETS            
Real estate assets, at cost 
     Land  $    396,527   $    392,794   $    386,246   $    381,818   $    379,606  
     Buildings and improvements  2,437,833   2,392,936   2,348,702   2,364,457   2,336,066  
   2,834,360   2,785,730   2,734,948   2,746,275   2,715,672  
     Accumulated depreciation  (549,769 ) (524,165 ) (498,776 ) (497,556 ) (471,919 )
           Net operating real estate assets  2,284,591   2,261,565   2,236,172   2,248,719   2,243,753  
     Properties under development, including land  242,682   264,259   285,636   204,857   192,776  
     Investment in joint ventures  10,247   10,919   15,386   15,846   16,131  
     Investment in third party development properties  --   --   --   49,283   46,795  
           Total real estate assets  2,537,520   2,536,743   2,537,194   2,518,705   2,499,455  
Accounts receivable - affiliates  6,736   6,444   5,843   5,588   5,551  
Notes receivable 
     Affiliates  --   1,800   1,800   1,800   1,800  
     Other  22,532   18,614   18,614   3,000   --  
Other assets, net *  40,641   43,143   41,827   43,530   43,208  
Cash and cash equivalents  1,550   1,945   405   1,652   2,200  
Restricted cash  4,258   4,365   4,216   6,461   6,271  
           Total assets  $ 2,613,237   $ 2,613,054   $ 2,609,899   $ 2,580,736   $ 2,558,485  
 
LIABILITIES AND SHAREHOLDERS' EQUITY  
Liabilities  
     Notes payable 
           Unsecured  $ 1,236,681   $ 1,208,513   $ 1,177,347   $ 1,116,063   $ 1,045,919  
           Secured  240,711   248,481   249,669   271,477   280,588  
Accounts payable  34,580   36,978   36,189   27,010   29,867  
Accrued real estate taxes  20,822   12,782   26,827   30,502   21,187  
Accrued expenses and other liabilities  45,126   52,347   49,144   46,773   44,137  
Distributions payable  30,663   30,639   30,541   31,177   31,789  
           Total liabilities  1,608,583   1,589,740   1,569,717   1,523,002   1,453,487  
 
Commitments and contingencies  --   --   --   --   --  
 
Minority interests 
     Units convertible into perpetual preferred shares  149,815   149,815   149,815   149,815   149,815  
     Units convertible into common shares  48,354   49,621   50,914   51,997   53,307  
           Total minority interests  198,169   199,436   200,729   201,812   203,122  
 
Shareholders' equity 
     Common shares of beneficial interest  480   479   479   479   479  
     Additional paid-in capital  1,320,045   1,318,649   1,314,592   1,314,556   1,314,325  
     Distributions in excess of net income  (261,577 ) (241,960 ) (224,756 ) (237,607 ) (221,801 )
     Unearned restricted share awards  (15,477 ) (16,282 ) (13,714 ) (15,048 ) (16,190 )
     Treasury shares, at cost  (236,986 ) (237,008 ) (237,148 ) (206,458 ) (174,937 )
           Total shareholders' equity  806,485   823,878   839,453   855,922   901,876  
           Total liabilities and shareholders' equity  $ 2,613,237   $ 2,613,054   $ 2,609,899   $ 2,580,736   $ 2,558,485  
 
 
* includes net deferred charges of:  $        9,268   $        9,925   $      10,190   $        8,340   $        7,167  


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NON-GAAP FINANCIAL MEASURES
DEFINITIONS & RECONCILIATIONS
(In thousands, except per share amounts)

(Unaudited)

This document contains certain non-GAAP financial measures that management believes are useful in evaluating an equity REIT’s performance. Camden’s definitions and calculations of non-GAAP finanical 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 sales of property, plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Camden’s definition of diluted FFO also assumes conversion at the beginning of the period 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 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
June 30,		 Six Months Ended
June 30,
2003 2002 2003 2002
 Net income   $   5,908   $ 12,117   $ 14,242   $ 26,099  
 Real estate depreciation from continuing operations  25,896   24,099   51,285   48,700  
 Real estate depreciation from discontinued operations  --   531   --   1,069  
 Adjustments for unconsolidated joint ventures  524   549   1,059   1,113  
 (Gain) on sale of properties  (659 ) (284 ) (2,082 ) (284 )
 (Gain) on sale of properties held in joint ventures  (451 ) --   (1,436 ) (37 )
 Income allocated to units convertible into common shares  520   477   889   931  
    Funds from operations - diluted  $ 31,738   $ 37,489   $ 63,957   $ 77,591  
 
Weighted average number of common and
    common equivalent shares outstanding
        EPS diluted  41,169   45,051   41,019   44,851  
        FFO diluted  43,047   45,051   42,900   44,851  
 
Net income per common share - diluted  $     0.14   $     0.28   $     0.35   $     0.60  
FFO per common share - diluted  0.74   0.83   1.49   1.73  



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:



3Q03 Range 2003 Range
Low High Low High
Expected net income per share - diluted   $   0.11   $   0.15   $   0.66   $   0.72  
Expected real estate depreciation  0.61   0.61   2.42   2.42  
Expected adjustments for unconsolidated joint ventures  0.01   0.01   0.04   0.04  
Expected income allocated to units convertible into common shares  0.01   0.01   0.03   0.03  
Expected (gain) on sale of properties held in joint ventures  0.00   0.00   (0.03 ) (0.03 )
Expected (gain) on sale of properties  0.00   0.00   (0.05 ) (0.05 )
Expected FFO per share - diluted  $   0.74   $   0.78   $   3.07   $   3.13  


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NON-GAAP FINANCIAL MEASURES
DEFINITIONS & RECONCILIATIONS
(In thousands, except per share amounts)

(Unautited)

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
June 30,		 Six Months Ended
June 30,
2003 2002 2003 2002
Net income   $   5,908   $ 12,117   $   14,242   $   26,099  
Development and construction fees  (1,257 ) (1,088 ) (2,593 ) (2,160 )
Management fees  (431 ) (429 ) (865 ) (893 )
Other income  (1,033 ) (1,358 ) (2,645 ) (4,208 )
Property management expense  2,424   2,326   4,961   4,721  
Fee and asset management expense  1,068   340   2,631   1,042  
General and administrative expense  4,437   3,212   8,048   6,297  
Other expenses  312   --   1,389   1,178  
Interest expense  18,519   17,483   36,875   34,587  
Depreciation and amortization  27,056   25,113   53,611   50,632  
Gain on sale of properties  (659 ) (284 ) (2,082 ) (284 )
Equity in income of joint ventures  (505 ) (128 ) (3,148 ) (353 )
Distributions on units convertible into perpetual preferred shares  3,218   3,218   6,436   6,436  
Income allocated to units convertible into common shares  520   477   889   931  
Income from discontinued operations  --   (770 ) --   (1,565 )
   Net Operating Income (NOI)  $ 59,577   $ 60,229   $ 117,749   $ 122,460  



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