EX-99.1 2 exhibit991earningsreleaseq.htm EXHIBIT 99.1 Exhibit
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CAMDEN PROPERTY TRUST ANNOUNCES THIRD QUARTER 2016 OPERATING RESULTS

Houston, TEXAS (October 27, 2016) - Camden Property Trust (NYSE:CPT) today announced operating results for the three and nine months ended September 30, 2016. Net Income Attributable to Common Shareholders (“EPS”), Funds from Operations (“FFO”), and Adjusted Funds from Operations (“AFFO”) for the three and nine months ended September 30, 2016 are detailed below. A reconciliation of EPS to FFO is included in the financial tables accompanying this press release.

 
Three Months Ended
 
Nine Months Ended
 
September 30
 
September 30
Per Diluted Share
2016
2015
 
2016
2015
EPS
$3.21
$0.41
 
$8.60
$2.09
FFO
$1.13
$1.14
 
$3.49
$3.34
AFFO
$0.92
$0.94
 
$3.01
$2.83
 
Quarterly Growth

Sequential Growth

Year to Date Growth

Same Property Results
3Q16 vs. 3Q15

3Q16 vs. 2Q16

2016 vs. 2015

Revenues
3.7
%
1.6
%
4.2
%
Expenses
2.2
%
1.4
%
3.2
%
Net Operating Income ("NOI")
4.5
%
1.7
%
4.7
%
Same Property Results
3Q16

3Q15

2Q16

Occupancy
95.8
%
96.2
%
95.5
%

“We are pleased to announce another solid quarter of performance,” said Richard Campo, Camden’s Chairman and CEO. “Our earnings were better than expected primarily due to lower operating expenses and the timing of certain dispositions, and we have raised our full-year guidance for both FFO and same property NOI as a result. In addition, we have now successfully completed all dispositions planned for 2016, for a total of nearly $1.2 billion in asset sales year-to-date, and we paid a special dividend of $4.25 per share to our common shareholders.”

The Company defines same property communities as communities owned and stabilized as of January 1, 2015, excluding properties held for sale. A reconciliation of net income to NOI and same property NOI is included in the financial tables accompanying this press release.

Development Activity
Lease-up was completed during the quarter at Camden Glendale in Glendale, CA, and construction was completed at Camden Victory Park in Dallas, TX. The Company also commenced construction at Camden Washingtonian in Gaithersburg, MD.

Development Communities - Construction Completed and Projects in Lease-Up ($ in millions)
 
 
Total
Total
% Leased

Community Name
Location
Units
Cost
as of 10/26/2016

Camden Chandler
Chandler, AZ
380
$67.8
87
%
Camden Victory Park
Dallas, TX
423
84.8
67
%
TOTAL
 
803
$152.6
 


Development Communities - Construction Ongoing ($ in millions)
 
 
Total
Total
% Leased

Community Name
Location
Units
Budget
as of 10/26/2016

Camden Gallery
Charlotte, NC
323
$58.0
69
%
The Camden
Los Angeles, CA
287
145.0
70
%
Camden Lincoln Station
Denver, CO
267
56.0
 
Camden NoMa II
Washington, DC
405
115.0
 
Camden Shady Grove
Rockville, MD
457
116.0
 
Camden McGowen Station
Houston, TX
315
90.0
 
Camden Washingtonian
Gaithersburg, MD
365
90.0
 
TOTAL
 
2,419
$670.0
 

Acquisition/Disposition Activity
During the quarter Camden acquired approximately 2.4 acres of land in Denver, CO for $15.0 million for the future development of approximately 230 apartment homes. The Company also sold one dual-phased community and five operating communities comprised of 2,906 apartment homes for approximately $484.4 million. Year-to-date, dispositions totaled nearly $1.2 billion.

Earnings Guidance
Camden updated its earnings guidance for 2016 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for fourth quarter 2016 as detailed below.

Per Diluted Share
4Q16
2016
EPS
$0.40 - $0.44
$9.00 - $9.04
FFO
$1.12 - $1.16
$4.61 - $4.65
Same Property Growth
2016 Range
2016 Midpoint
Revenues
3.9% - 4.1%
4.0%
Expenses
2.3% - 2.5%
2.4%
NOI
4.8% - 5.0%
4.9%

The Company's revised 2016 same store expense guidance is the result of lower projected operating expenses, including lower than anticipated property taxes due to both lower rates and valuations combined with better than expected resolutions to several prior year property tax appeals. The majority of the tax refunds from these prior year appeals will be recognized in the fourth quarter of 2016.  

Camden intends to update its earnings guidance to the market on a quarterly basis. Additional information on the Company’s 2016 financial outlook and a reconciliation of expected EPS to expected FFO are included in the financial tables accompanying this press release.

Special Dividend
In addition to the regular quarterly dividend, Camden declared a special dividend of $4.25 per share to its common shareholders of record as of September 23, 2016. The special dividend, consisting primarily of gains on dispositions completed in 2016, was paid on September 30, 2016.

Conference Call
Friday, October 28, 2016 at 11:00 AM CT
Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061
Passcode: 6983019
Webcast: http://services.choruscall.com/links/cpt161028.html


Supplemental financial information is available in the Investors section of the Company’s website under Earnings Releases or by calling Camden’s Investor Relations Department at (713) 354-2787.

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 (the "Company") operates, management's beliefs, and assumptions made by management. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties which are difficult to predict. Factors which may cause the Company’s actual results or performance to differ materially from those contemplated by forward-looking statements are described under the heading “Risk Factors” in Camden’s Annual Report on Form 10-K and in other filings with the Securities and Exchange Commission (SEC). Forward-looking statements made in today’s press release represent management’s current opinions at the time of this publication, and the Company assumes no obligation to update or supplement these statements because of subsequent events.

About Camden
Camden Property Trust, an S&P 400 Company, is a real estate company engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns interests in and operates 151 properties containing 52,506 apartment homes across the United States. Upon completion of 7 properties under development, the Company’s portfolio will increase to 54,925 apartment homes in 158 properties. Camden was recently named by FORTUNE® Magazine for the ninth consecutive year as one of the “100 Best Companies to Work For” in America, ranking #9.

For additional information, please contact Camden’s Investor Relations Department at (713) 354-2787 or access our website at camdenliving.com.








 
 
 
CAMDEN
 
OPERATING RESULTS
 
 
(In thousands, except per share amounts)
 
 
 
(Unaudited)
 
Three Months Ended September 30,
 
 Nine Months Ended September 30,
 
2016
2015
 
2016
2015
OPERATING DATA
 
 
 
 
 
Property revenues
 
 
 
 
 
Rental revenues

$187,771


$182,650

 

$564,136


$536,183

Other property revenues
32,464

29,943

 
95,172

84,450

Total property revenues
220,235

212,593

 
659,308

620,633

 
 
 
 
 
 
Property expenses
 
 
 
 
 
Property operating and maintenance
53,679

53,380

 
156,804

151,400

Real estate taxes
26,695

25,284

 
80,875

74,542

Total property expenses
80,374

78,664

 
237,679

225,942

 
 
 
 
 
 
Non-property income
 
 
 
 
 
Fee and asset management
1,667

1,902

 
5,223

5,083

Interest and other income
927

107

 
1,366

308

Income/(loss) on deferred compensation plans
3,494

(3,438
)
 
4,781

(1,871
)
Total non-property income
6,088

(1,429
)
 
11,370

3,520

 
 
 
 
 
 
Other expenses
 
 
 
 
 
Property management
5,590

5,700

 
19,147

17,423

Fee and asset management
911

1,227

 
2,861

3,424

General and administrative
10,810

11,790

 
34,836

33,120

Interest (a)
23,076

23,674

 
69,936

73,572

Depreciation and amortization
62,832

61,336

 
187,379

179,260

Expense/(benefit) on deferred compensation plans
3,494

(3,438
)
 
4,781

(1,871
)
Total other expenses
106,713

100,289

 
318,940

304,928

 
 
 
 
 
 
Gain on sale of operating properties, including land
262,719

—

 
295,397

85,192

Equity in income of joint ventures
1,866

1,574

 
5,052

4,487

Income from continuing operations before income taxes
303,821

33,785

 
414,508

182,962

Income tax expense
(400
)
(498
)
 
(1,204
)
(1,334
)
Income from continuing operations
303,421

33,287

 
413,304

181,628

Income from discontinued operations
—

4,907

 
7,605

14,832

Gain on sale of discontinued operations, net of tax
—

—

 
375,237

—

Net income
303,421

38,194

 
796,146

196,460

Less income allocated to non-controlling interests from continuing operations
(12,523
)
(1,150
)
 
(17,216
)
(7,738
)
Net income attributable to common shareholders

$290,898


$37,044

 

$778,930


$188,722

 
 
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 
 
 
 
 
Net income
$303,421
$38,194
 
$796,146
$196,460
Other comprehensive income
 
 
 
 
 
Reclassification of net loss on cash flow hedging activities, prior service cost and net loss on post retirement obligation
32

38

 
97

112

Comprehensive income
303,453

38,232

 
796,243

196,572

Less income allocated to non-controlling interests from continuing operations
(12,523
)
(1,150
)
 
(17,216
)
(7,738
)
Comprehensive income attributable to common shareholders

$290,930


$37,082

 

$779,027


$188,834

 
 
 
 
 
 
PER SHARE DATA
 
 
 
 
 
 
 
 
 
 
 
Total earnings per common share - basic

$3.23


$0.41

 

$8.63


$2.10

Total earnings per common share - diluted
3.21

0.41

 
8.60

2.09

Earnings per share from continuing operations - basic
3.23

0.36

 
4.35

1.93

Earnings per share from continuing operations - diluted
3.21

0.36

 
4.34

1.93

 
 
 
 
 
 
Weighted average number of common shares outstanding:
 
 
 
 
 
     Basic
89,669

89,164

 
89,524

89,102

     Diluted
90,012

89,530

 
89,858

89,450


(a) Prior period has been changed to reflect the adoption of ASU 2015-03 (as supplemented by ASU 2015-15) at December 31, 2015, which required retrospective application.





Note: Please refer to the following pages for definitions and reconciliations of all non-GAAP financial measures presented in this document.




 
 
 
CAMDEN
 
FUNDS FROM OPERATIONS
 
 
(In thousands, except per share and property data amounts)
 
 
 
(Unaudited)
 
Three Months Ended September 30,
 
 Nine Months Ended September 30,
 
2016
2015
 
2016
2015
FUNDS FROM OPERATIONS
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to common shareholders

$290,898


$37,044

 

$778,930


$188,722

 Real estate depreciation and amortization
61,264

59,793

 
182,694

174,882

 Real estate depreciation from discontinued operations
—

4,059

 
4,327

11,936

 Adjustments for unconsolidated joint ventures
2,266

2,300

 
6,944

6,782

 Income allocated to non-controlling interests
12,523

1,150

 
17,216

7,738

 Gain on sale of operating properties, net of tax
(262,719
)
—

 
(294,954
)
(85,145
)
 Gain on sale of discontinued operations, net of tax
—

—

 
(375,237
)
—

     Funds from operations

$104,232


$104,346

 

$319,920


$304,915

 
 
 
 
 
 
     Less: recurring capitalized expenditures (a)
(19,246
)
(18,202
)
 
(43,609
)
(46,740
)
 
 
 
 
 
 
     Adjusted funds from operations - diluted

$84,986


$86,144

 

$276,311


$258,175

 
 
 
 
 
 
PER SHARE DATA
 
 
 
 
 
Funds from operations - diluted

$1.13


$1.14

 

$3.49


$3.34

Adjusted funds from operations - diluted
0.92

0.94

 
3.01

2.83

Distributions declared per common share
0.75

0.70

 
2.25

2.10

Special Distributions declared per common share
4.25

—

 
4.25

—

 
 
 
 
 
 
Weighted average number of common shares outstanding:
 
 
 
 
 
FFO/AFFO - diluted
91,901

91,426

 
91,749

91,347

 
 
 
 
 
 
PROPERTY DATA
 
 
 
 
 
Total operating properties (end of period) (b)
151

171

 
151

171

Total operating apartment homes in operating properties (end of period) (b)
52,506

59,407

 
52,506

59,407

Total operating apartment homes (weighted average)
46,702

52,323

 
49,521

51,881

Total operating apartment homes - excluding discontinued operations (weighted average)
46,702

47,405

 
47,426

46,963


(a) Capital expenditures necessary to help preserve the value of and maintain the functionality at our communities.

(b) Includes joint ventures and properties held for sale.































Note: Please refer to the following pages for definitions and reconciliations of all non-GAAP financial measures presented in this document.




 
 
 
CAMDEN
 
BALANCE SHEET
 
 
(In thousands)
 
 
 
(Unaudited)
 
 
Sep 30,
2016

Jun 30,
2016

Mar 31,
2016

Dec 31,
2015

Sep 30,
2015

 
ASSETS
 
 
 
 
 
 
Real estate assets, at cost
 
 
 
 
 
 
Land

$962,507


$989,097


$998,519


$989,247


$990,035

 
Buildings and improvements
5,910,347

5,956,361

5,978,843

5,911,432

5,890,751

 
 
6,872,854

6,945,458

6,977,362

6,900,679

6,880,786

 
Accumulated depreciation
(1,829,563
)
(1,855,678
)
(1,841,107
)
(1,780,694
)
(1,730,929
)
 
Net operating real estate assets
5,043,291

5,089,780

5,136,255

5,119,985

5,149,857

 
Properties under development, including land
425,452

446,740

489,730

486,918

439,777

 
Investments in joint ventures
30,046

31,142

32,568

33,698

34,705

 
Properties held for sale, including land
 
 
 
 
 
 
Operating properties held for sale (a)
—

105,254

—

—

—

 
Discontinued operations held for sale (b)
—

—

238,417

239,063

237,635

 
Total real estate assets
5,498,789

5,672,916

5,896,970

5,879,664

5,861,974

 
Short-term investments (c)
100,000

—

—

—

—

 
Accounts receivable – affiliates
23,998

24,008

24,011

25,100

25,053

 
Other assets, net (d)
143,059

139,263

107,161

116,260

118,985

 
Cash and cash equivalents
313,742

341,726

6,935

10,617

10,375

 
Restricted cash
8,691

21,561

5,378

5,971

6,126

 
Total assets

$6,088,279


$6,199,474


$6,040,455


$6,037,612


$6,022,513

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
Notes payable
 
 
 
 
 
 
Unsecured

$1,582,655


$1,582,077


$1,866,502


$1,824,930


$1,803,360

 
Secured
897,971

898,723

899,315

899,757

900,472

 
Accounts payable and accrued expenses
143,193

140,864

140,991

133,353

131,532

 
Accrued real estate taxes
66,079

46,801

25,499

45,223

57,642

 
Distributions payable
82,861

69,116

69,020

64,275

64,276

 
Other liabilities (e)
122,270

117,023

86,423

97,814

96,679

 
Total liabilities
2,895,029

2,854,604

3,087,750

3,065,352

3,053,961

 
 
 
 
 
 
 
 
Commitments and contingencies
 
 
 
 
 
 
Non-qualified deferred compensation share awards
72,222

72,480

88,550

79,364

72,316

 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
Common shares of beneficial interest
978

978

975

976

976

 
Additional paid-in capital
3,675,806

3,673,237

3,658,372

3,662,864

3,660,482

 
Distributions in excess of net income attributable to common shareholders
(261,324
)
(104,004
)
(491,275
)
(458,577
)
(452,257
)
 
Treasury shares, at cost
(373,597
)
(373,914
)
(378,032
)
(386,793
)
(387,114
)
 
Accumulated other comprehensive loss (f)
(1,816
)
(1,848
)
(1,881
)
(1,913
)
(2,307
)
 
Total common equity
3,040,047

3,194,449

2,788,159

2,816,557

2,819,780

 
Non-controlling interests
80,981

77,941

75,996

76,339

76,456

 
Total equity
3,121,028

3,272,390

2,864,155

2,892,896

2,896,236

 
Total liabilities and equity

$6,088,279


$6,199,474


$6,040,455


$6,037,612


$6,022,513

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
(a) Operating properties held for sale includes one dual-phase property and one operating property as of June 30, 2016 which were each subsequently sold in July.
 
 
 
 
 
 
 
 
(b) All prior periods presented have been changed to present the 15 operating properties, 19.6 acres of land, and retail center located in Las Vegas, Nevada, which were classified as held for sale at March 31, 2016 and subsequently sold on April 26, 2016. (See page 19 for additional information relating to this sale).
 
 
 
 
 
 
 
 
 
(c) At September 30, 2016, our short-term investments consist wholly of a certificate of deposit that has a maturity date of January 4, 2017.
 
 
 
 
 
 
 
 
(d) Includes net deferred charges of:

$2,140


$2,353


$2,600


$2,851


$3,077

 
 
 
 
 
 
 
 
(e) Includes deferred revenues of:

$1,598


$831


$1,797


$1,768


$1,918

 
 
 
 
 
 
 
 
(f) Represents the unrealized net loss and unamortized prior service costs on post retirement obligation, and unrealized loss on cash flow hedging activities.





 
 
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 accounting principles generally accepted in the United States of America ("GAAP")), excluding gains (or losses) associated with previously depreciated operating properties, real estate depreciation and amortization, impairments of depreciable assets, and adjustments for unconsolidated joint ventures. Our calculation of diluted FFO also assumes conversion of all potentially dilutive securities, including certain non-controlling interests, which are convertible into common shares. We consider FFO to be an appropriate supplemental measure of operating performance because, by excluding gains or losses on dispositions of operating properties, and depreciation, FFO can assist in the comparison of the operating performance of a company’s real estate investments between periods or to different companies. A reconciliation of net income attributable to common shareholders to FFO is provided below:

Adjusted FFO
In addition to FFO, we compute Adjusted FFO ("AFFO") as a supplemental measure of operating performance. AFFO is calculated utilizing FFO less recurring capital expenditures which are necessary to help preserve the value of and maintain the functionality at our communities. Our definition of recurring capital expenditures may differ from other REITs, and there can be no assurance our basis for computing this measure is comparable to other REITs. A reconciliation of FFO to AFFO is provided below:
 
Three Months Ended September 30,
 
 Nine Months Ended September 30,
 
2016
2015
 
2016
2015
Net income attributable to common shareholders

$290,898


$37,044

 

$778,930


$188,722

 Real estate depreciation and amortization
61,264

59,793

 
182,694

174,882

 Real estate depreciation from discontinued operations
—

4,059

 
4,327

11,936

 Adjustments for unconsolidated joint ventures
2,266

2,300

 
6,944

6,782

 Income allocated to non-controlling interests
12,523

1,150

 
17,216

7,738

 Gain on sale of operating properties, net of tax
(262,719
)
—

 
(294,954
)
(85,145
)
 Gain on sale of discontinued operations, net of tax
—

—

 
(375,237
)
—

Funds from operations

$104,232


$104,346

 

$319,920


$304,915

 
 
 
 
 
 
Less: recurring capitalized expenditures
(19,246
)
(18,202
)
 
(43,609
)
(46,740
)
 
 
 
 
 
 
Adjusted funds from operations

$84,986


$86,144

 

$276,311


$258,175

 
 
 
 
 
 
Weighted average number of common shares outstanding:
 
 
 
 
 
EPS diluted
90,012

89,530

 
89,858

89,450

FFO/AFFO diluted
91,901

91,426

 
91,749

91,347

 
 
 
 
 
 
Total earnings per common share - diluted

$3.21


$0.41

 

$8.60


$2.09

FFO per common share - diluted

$1.13


$1.14

 

$3.49


$3.34

AFFO per common share - diluted

$0.92


$0.94

 

$3.01


$2.83

 
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 earnings per common share (EPS). Guidance excludes gains, if any, on properties not currently held for sale due to the uncertain timing and extent of property dispositions and the resulting gains/losses on sales. A reconciliation of the ranges provided for diluted EPS to expected FFO per diluted share is provided below:
 
4Q16

Range
 
2016

Range
 
Low
High
 
Low
High
Expected earnings per common share - diluted

$0.40


$0.44

 

$9.00


$9.04

Expected real estate depreciation and amortization
0.68

0.68

 
2.75

2.75

Expected adjustments for unconsolidated joint ventures
0.03

0.03

 
0.10

0.10

Expected income allocated to non-controlling interests
0.01

0.01

 
0.21

0.21

Reported (gain) on sale of operating properties
—

—

 
(3.28
)
(3.28
)
Reported (gain) on sale of discontinued operations
—

—

 
(4.17
)
(4.17
)
Expected FFO per share - diluted

$1.12


$1.16

 

$4.61


$4.65



Note: This table contains forward-looking statements. Please see the paragraph regarding forward-looking statements earlier in this document.




 
 
 
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. NOI is further detailed in the Components of Property NOI schedules on page 11. The Company considers NOI to be an appropriate supplemental measure of operating performance to net income attributable to common shareholders because it reflects the operating performance of our communities without allocation of corporate level property management overhead or general and administrative costs. A reconciliation of net income attributable to common shareholders to net operating income is provided below:
 
Three months ended September 30,
 
Nine months ended September 30,
 
2016
2015
 
2016
2015
Net income

$303,421


$38,194

 

$796,146


$196,460

Less: Fee and asset management income
(1,667
)
(1,902
)
 
(5,223
)
(5,083
)
Less: Interest and other income
(927
)
(107
)
 
(1,366
)
(308
)
Less: Income/(loss) on deferred compensation plans
(3,494
)
3,438

 
(4,781
)
1,871

Plus: Property management expense
5,590

5,700

 
19,147

17,423

Plus: Fee and asset management expense
911

1,227

 
2,861

3,424

Plus: General and administrative expense
10,810

11,790

 
34,836

33,120

Plus: Interest expense
23,076

23,674

 
69,936

73,572

Plus: Depreciation and amortization expense
62,832

61,336

 
187,379

179,260

Plus: Expense/(benefit) on deferred compensation plans
3,494

(3,438
)
 
4,781

(1,871
)
Less: Gain on sale of operating properties, including land
(262,719
)
—

 
(295,397
)
(85,192
)
Less: Equity in income of joint ventures
(1,866
)
(1,574
)
 
(5,052
)
(4,487
)
Plus: Income tax expense
400

498

 
1,204

1,334

Less: Income from discontinued operations
—

(4,907
)
 
(7,605
)
(14,832
)
Less: Gain on sale of discontinued operations, net of tax
—

—

 
(375,237
)
—

Net Operating Income (NOI)

$139,861


$133,929

 

$421,629


$394,691

 
 
 
 
 
 
"Same Property" Communities

$120,966


$115,739

 

$357,919


$341,910

Non-"Same Property" Communities
11,801

8,545

 
35,898

24,160

Development and Lease-Up Communities
2,525

359

 
4,745

576

Dispositions/Other
4,569

9,286

 
23,067

28,045

Net Operating Income (NOI)

$139,861


$133,929

 

$421,629


$394,691


Adjusted EBITDA

Adjusted EBITDA is defined by the Company as earnings before interest, taxes, depreciation and amortization, including net operating income from discontinued operations, excluding equity in (income) loss of joint ventures, (gain) loss on sale of unconsolidated joint venture interests, gain on acquisition of controlling interest in joint ventures, gain on sale of operating properties including land, net of tax, and income (loss) allocated to non-controlling interests. The Company considers Adjusted EBITDA to be an appropriate supplemental measure of operating performance to net income attributable to common shareholders because it represents income before non-cash depreciation and the cost of debt, and excludes gains or losses from property dispositions. A reconciliation of net income attributable to common shareholders to Adjusted EBITDA is provided below:
 
Three months ended September 30,
 
Nine months ended September 30,
 
2016
2015
 
2016
2015
Net income attributable to common shareholders

$290,898


$37,044

 

$778,930


$188,722

Plus: Interest expense
23,076

23,674

 
69,936

73,572

Plus: Depreciation and amortization expense
62,832

61,336

 
187,379

179,260

Plus: Income allocated to non-controlling interests from continuing operations
12,523

1,150

 
17,216

7,738

Plus: Income tax expense
400

498

 
1,204

1,334

Plus: Real estate depreciation from discontinued operations
—

4,059

 
4,327

11,936

Less: Gain on sale of operating properties, including land
(262,719
)
—

 
(295,397
)
(85,192
)
Less: Equity in income of joint ventures
(1,866
)
(1,574
)
 
(5,052
)
(4,487
)
Less: Gain on sale of discontinued operations, net of tax
—

—

 
(375,237
)
—

Adjusted EBITDA

$125,144


$126,187

 

$383,306


$372,883