-----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, V1jIvNCA4gytsZ+4LHfRraSyjQImmGwOTF8U0LAhaqU2GWZDeVRlpTRYsBhVyVN7 3gRYUseo8ZneDVWd4clm1Q== 0001157523-04-010400.txt : 20041105 0001157523-04-010400.hdr.sgml : 20041105 20041104213737 ACCESSION NUMBER: 0001157523-04-010400 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041104 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041105 DATE AS OF CHANGE: 20041104 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: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12110 FILM NUMBER: 041121033 BUSINESS ADDRESS: STREET 1: 3 GREENWAY PLAZA STREET 2: SUITE 1300 CITY: HOUSTON STATE: TX ZIP: 77046 BUSINESS PHONE: 7133542500 MAIL ADDRESS: STREET 1: 3 GREENWAY PLAZA STREET 2: SUITE 1300 CITY: HOUSTON STATE: TX ZIP: 77046 8-K 1 a4759408.txt CAMDEN PROPERTY TRUST UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of report (Date of earliest event reported): November 4, 2004 CAMDEN PROPERTY TRUST (Exact name of registrant as specified in its charter) TEXAS 1-12110 76-6088377 (State or other jurisdiction of (Commission file number) (I.R.S. Employer incorporation or organization) Identification Number) Three Greenway Plaza, Suite 1300, Houston, Texas 77046 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (713) 354-2500 Not applicable (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition. On November 4, 2004, Camden Property Trust (the "Company") issued a press release announcing its consolidated financial results for the quarter ended September 30, 2004. A copy of the press release is furnished as Exhibit 99.1 to this report. This information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing. Item 9.01 Financial Statements and Exhibits. (c) Exhibits. 99.1 Press Release issued by Camden Property Trust dated November 4, 2004. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: November 4, 2004 CAMDEN PROPERTY TRUST By: /s/ Dennis M. Steen ---------------------------------------- Dennis M. Steen Senior Vice President - Finance, Chief Financial Officer and Secretary EX-99.1 2 a4759408ex991.txt PRESS RELEASE Exhibit 99.1 Camden Property Trust Announces Third Quarter 2004 Operating Results HOUSTON--(BUSINESS WIRE)--Nov. 4, 2004--Camden Property Trust (NYSE:CPT) announced that its net income ("EPS") for the third quarter of 2004 was $5.8 million or $0.14 per diluted share compared to $5.9 million or $0.14 per diluted share for the same period in 2003. For the nine months ended September 30, 2004, EPS totaled $22.8 million or $0.54 per diluted share compared to $20.2 million or $0.49 per diluted share for the same period in 2003. Funds from operations ("FFO") for the third quarter of 2004 totaled $0.76 per diluted share or $33.6 million, as compared to $0.76 per diluted share or $32.9 million reported for the same period in 2003. FFO for the three months ended September 30, 2004 included a charge of $0.7 million or $0.02 per diluted share related to the redemption of $35.5 million of Series C preferred units. FFO for the nine months ended September 30, 2004 totaled $2.38 per diluted share or $105.5 million, as compared to $2.30 per diluted share or $98.9 million reported for the same period in 2003. FFO for the nine months ended September 30, 2004 included $1.7 million or $0.04 per diluted share related to insurance proceeds received for lost rents related to a fire in one of Camden's communities in 2000, a $0.9 million or $0.02 per diluted share gain associated with the sale of an e-commerce investment that had previously been written off, and a $0.7 million or $0.02 per diluted share charge related to the redemption of $35.5 million of Series C preferred units. 2003 FFO has been adjusted from amounts previously reported to include gains on sale of undepreciated property in accordance with the National Association of Real Estate Investment Trusts ("NAREIT") definition of FFO. A reconciliation of net income to FFO is included in the financial tables accompanying this press release. Physical occupancy levels averaged 94.8% during the third quarter of 2004 as compared to 94.3% in the second quarter of 2004 and 94.4% in the third quarter of 2003. For the 44,481 apartment homes included in "same-property" results, third quarter 2004 revenues increased 0.5% while operating expenses increased 2.5%, producing a 0.9% decline in same-property net operating income ("NOI") compared to the third quarter of 2003. On a sequential basis, third quarter 2004 same-property NOI declined 1.7% compared to second quarter 2004, with revenues increasing 0.5% and expenses increasing 3.6% compared to the prior quarter. On a year-to-date basis, 2004 same-property NOI increased 0.5%, with a revenue increase of 1.4% and expense growth of 2.6% compared to the same period in 2003. 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. Leasing continued at Camden Harbor View in Long Beach, CA during the quarter, and that community is currently 84% leased and 82% occupied. Construction continued on Camden Westwind in Ashburn, VA, Camden Lago Vista in Orlando, FL and Camden Farmers Market II in Dallas, TX, with initial occupancies expected at all three communities during early to mid-2005. Camden Westwind is being developed in a joint venture format, with Camden retaining a 20% ownership interest. In addition, construction and leasing was completed during the quarter on an additional phase at Camden Miramar in Corpus Christi, TX, which added 126 student housing units to the existing community. During the quarter, the Company issued $100 million of 4.70% senior unsecured notes, retired $58.2 million of 7.29% secured mortgage debt, and redeemed $35.5 million of its 8.25% Series C preferred units. Original issuance costs of $0.7 million were expensed in connection with the redemption of the Series C preferred units. As previously announced, on October 4, 2004, Camden and Summit Properties Inc. executed a definitive merger agreement pursuant to which Summit will be merged with and into a wholly owned subsidiary of Camden. The transaction is currently expected to close in the first quarter of 2005. Camden expects 2004 FFO between $3.18 and $3.30 per diluted share and 2004 EPS between $0.66 and $0.78 per diluted share, excluding any future gains from potential property sales. For 2004, 12 research analysts have contributed FFO estimates on CPT to First Call ranging from $3.18 to $3.27 per diluted share, for a mean of $3.24 per diluted share. The Company also provided guidance for the fourth quarter of 2004 of $0.80 to $0.92 per diluted share for FFO and $0.12 to $0.24 per diluted share for EPS. 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 Friday, November 5, 2004 at 11:00 AM Central Time to review its third quarter results and discuss its outlook for future performance. To participate in the call, please dial (800) 901-5241 (domestic) or (617) 786-2963 (international) by 10:50 AM Central Time and request the Camden Property Trust Third Quarter Earnings Call, Conference Passcode #53493631, or join the live webcast of the conference call by accessing the Investor Relations section of the Company's web site at www.camdenliving.com. Supplemental financial information is available in the Investor Relations section of the Company's web site 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 145 properties containing 52,008 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 53,122 apartment homes in 148 properties. For additional information, please contact Camden's Investor Relations Department at (800) 922-6336 or (713) 354-2787 or access our web site at http://www.camdenliving.com. Additional Information about the Merger and Where to Find It In connection with the proposed merger of Summit with and into a wholly owned subsidiary of Camden, Camden and Summit intend to file relevant materials with the Securities and Exchange Commission, including a registration statement on Form S-4 that will contain a prospectus and a joint proxy statement. INVESTORS AND SECURITY HOLDERS OF CAMDEN AND SUMMIT ARE URGED TO READ THE MATERIALS WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT CAMDEN, SUMMIT AND THE MERGER. The proxy statement, prospectus and other relevant materials (when they become available), and any other documents filed by Camden or Summit with the SEC, may be obtained free of charge at the SEC's web site at www.sec.gov. In addition, investors and security holders may obtain free copies of the documents filed with the SEC by Camden by directing a written request to Camden Property Trust, 3 Greenway Plaza, Suite 1300, Houston, TX 77046, Attention: Investor Relations, and free copies of the documents filed with the SEC by Summit by directing a written request to Summit Properties Inc. 309 East Morehead Street, Suite 200, Charlotte, NC 28202, Attention: Investor Relations. Investors and security holders are urged to read the proxy statement, prospectus and the other relevant materials when they become available before making any voting or investment decision with respect to the merger. Camden, Summit and their respective executive officers, trust managers and directors may be deemed to be participants in the solicitation of proxies from the security holders of Camden and Summit in connection with the merger. Information about those executive officers and trust managers of Camden and their ownership of Camden common shares is set forth in the proxy statement for Camden's 2004 Annual Meeting of Shareholders, which was filed with the SEC on March 30, 2004. Information about the executive officers and directors of Summit and their ownership of Summit common stock is set forth in the proxy statement for Summit's 2004 Annual Meeting of Stockholders, which was filed with the SEC on March 24, 2004. Investors and security holders may obtain additional information regarding the direct and indirect interests of Camden, Summit and their respective executive officers, trust managers and directors in the merger by reading the proxy statement and prospectus regarding the merger when they become available. This communication shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. CAMDEN OPERATING RESULTS (In thousands, except per share and property data amounts) - ---------------------------------------------------------------------- (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------------- -------------------- OPERATING DATA 2004 2003 2004 2003 - -------------- --------- --------- --------- ---------- Revenues Rental revenues $96,937 $93,588 $289,212 $275,289 Other property revenues 9,047 8,790 26,268 25,237 --------- --------- --------- ---------- Total property revenues 105,984 102,378 315,480 300,526 --------- --------- --------- ---------- Development and construction fees 1,516 1,521 5,348 4,114 Management fees 446 423 1,291 1,288 Other revenues 1,917 802 7,999 3,447 --------- --------- --------- ---------- Total revenues 109,863 105,124 330,118 309,375 Expenses Property operating and maintenance 33,537 31,661 95,507 89,815 Real estate taxes 11,604 11,203 34,953 33,448 --------- --------- --------- ---------- Total property expenses 45,141 42,864 130,460 123,263 --------- --------- --------- ---------- Property management 2,901 2,533 8,512 7,494 Fee and asset management 850 598 2,845 3,229 General and administrative 4,074 3,878 12,400 11,926 Other expenses - - - 1,389 Interest 19,305 18,584 59,701 55,459 Amortization of deferred financing costs 767 658 2,250 1,923 Depreciation 27,149 26,353 80,299 78,699 --------- --------- --------- ---------- Total expenses 100,187 95,468 296,467 283,382 --------- --------- --------- ---------- Income before gain on sale of land, impairment loss on land held for sale, equity in income of joint ventures and minority interests 9,676 9,656 33,651 25,993 Gain on sale of land - 89 1,255 2,171 Impairment loss on land held for sale - - (1,143) - Equity in income of joint ventures 93 4 259 3,152 Income allocated to minority interests Distributions on perpetual preferred units (2,664) (3,218) (8,350) (9,654) Original issuance costs on redeemed perpetual preferred units (745) - (745) - Income allocated to common units (553) (593) (2,078) (1,482) --------- --------- --------- ---------- Net income $5,807 $5,938 $22,849 $20,180 ========= ========= ========= ========== FUNDS FROM OPERATIONS - --------------------- Net income $5,807 $5,938 $22,849 $20,180 Real estate depreciation 26,741 25,844 78,987 77,129 Adjustments for unconsolidated joint ventures 523 529 1,570 1,588 (Gain) on sale of properties held in joint ventures - - - (1,436) Income allocated to common units 553 593 2,078 1,482 --------- --------- --------- ---------- Funds from operations - diluted $33,624 $32,904 $105,484 $98,943 ========= ========= ========= ========== PER SHARE DATA - -------------- Net income - basic $0.14 $0.15 $0.57 $0.51 Net income - diluted 0.14 0.14 0.54 0.49 Funds from operations - diluted 0.76 0.76 2.38 2.30 Cash distributions 0.64 0.64 1.91 1.91 Weighted average number of common and common equivalent shares outstanding: Basic 40,377 39,290 40,234 39,224 Diluted 42,574 41,465 42,381 41,170 FFO - diluted 44,449 43,343 44,257 43,050 PROPERTY DATA - ------------- Total operating properties (end of period) (a) 145 144 145 144 Total operating apartment homes in operating properties (end of period) (a) 52,008 51,344 52,008 51,344 Total operating apartment homes (weighted average) 47,192 46,581 47,039 46,237 (a) Includes joint venture investments. CAMDEN BALANCE SHEETS (In thousands) - ---------------------------------------------------------------------- (Unaudited) Sep 30, Jun 30, Mar 31, 2004 2004 2004 ----------- ----------- ----------- ASSETS Real estate assets, at cost Land $406,760 $406,626 $404,113 Buildings and improvements 2,583,555 2,573,099 2,538,193 ----------- ----------- ----------- 2,990,315 2,979,725 2,942,306 Accumulated depreciation (680,184) (653,581) (627,808) ----------- ----------- ----------- Net operating real estate assets 2,310,131 2,326,144 2,314,498 Properties under development, including land 174,351 163,326 156,466 Investment in joint ventures 10,076 10,371 10,754 Land held for sale 1,800 1,800 1,800 ----------- ----------- ----------- Total real estate assets 2,496,358 2,501,641 2,483,518 Accounts receivable - affiliates 30,434 29,981 28,984 Notes receivable Affiliates 10,010 9,665 9,335 Other 53,599 48,333 41,685 Other assets, net (a) 49,804 48,063 42,922 Cash and cash equivalents 2,465 1,922 3,836 Restricted cash 4,259 4,841 6,794 ----------- ----------- ----------- Total assets $2,646,929 $2,644,446 $2,617,074 =========== =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Notes payable Unsecured $1,435,197 $1,332,216 $1,291,074 Secured 170,129 229,423 230,622 Accounts payable 28,794 31,309 26,112 Accrued real estate taxes 32,732 21,935 14,165 Accrued expenses and other liabilities 48,192 43,957 54,397 Distributions payable 30,331 31,038 30,974 ----------- ----------- ----------- Total liabilities 1,745,375 1,689,878 1,647,344 Commitments and contingencies Minority interests Perpetual preferred units 115,060 149,815 149,815 Common units 43,881 44,884 45,711 ----------- ----------- ----------- Total minority interests 158,941 194,699 195,526 Shareholders' equity Common shares of beneficial interest 486 485 484 Additional paid-in capital 1,346,040 1,344,366 1,340,564 Distributions in excess of net income (353,996) (333,416) (314,720) Unearned restricted share awards (14,069) (15,384) (15,937) Treasury shares, at cost (235,848) (236,182) (236,187) ----------- ----------- ----------- Total shareholders' equity 742,613 759,869 774,204 ----------- ----------- ----------- Total liabilities and shareholders' equity $2,646,929 $2,644,446 $2,617,074 =========== =========== =========== (a) includes net deferred charges of: $8,917 $8,756 $9,313 (Unaudited) Dec 31, Sep 30, 2003 2003 ----------- ----------- ASSETS Real estate assets, at cost Land $400,490 $397,006 Buildings and improvements 2,499,214 2,462,252 ----------- ----------- 2,899,704 2,859,258 Accumulated depreciation (601,688) (575,459) ----------- ----------- Net operating real estate assets 2,298,016 2,283,799 Properties under development, including land 189,119 236,529 Investment in joint ventures 11,033 9,994 Land held for sale - - ----------- ----------- Total real estate assets 2,498,168 2,530,322 Accounts receivable - affiliates 25,997 7,141 Notes receivable Affiliates 9,017 - Other 41,416 24,289 Other assets, net (a) 40,951 39,497 Cash and cash equivalents 3,357 2,341 Restricted cash 6,655 4,058 ----------- ----------- Total assets $2,625,561 $2,607,648 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Notes payable Unsecured $1,277,879 $1,248,852 Secured 231,798 232,953 Accounts payable 26,150 24,025 Accrued real estate taxes 27,407 31,444 Accrued expenses and other liabilities 50,111 51,266 Distributions payable 30,946 30,698 ----------- ----------- Total liabilities 1,644,291 1,619,238 Commitments and contingencies Minority interests Perpetual preferred units 149,815 149,815 Common units 46,570 47,382 ----------- ----------- Total minority interests 196,385 197,197 Shareholders' equity Common shares of beneficial interest 483 481 Additional paid-in capital 1,330,512 1,321,103 Distributions in excess of net income (297,808) (281,256) Unearned restricted share awards (11,875) (12,667) Treasury shares, at cost (236,427) (236,448) ----------- ----------- Total shareholders' equity 784,885 791,213 ----------- ----------- Total liabilities and shareholders' equity $2,625,561 $2,607,648 =========== =========== (a) includes net deferred charges of: $9,558 $8,691 CAMDEN 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 financial measures may differ from those used by other REITs, and thus may not be comparable. The non-GAAP financial measures should not be considered as an alternative to net income as an indication of our operating performance, or to net cash provided by operating activities as a measure of our liquidity. FFO - --- The National Association of Real Estate Investment Trusts ("NAREIT") currently defines FFO as net income computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains or losses from of depreciable operating property sales, plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Camden's definition of diluted FFO also assumes conversion of all dilutive convertible securities, including minority interests, which are convertible into common equity. The Company considers FFO to be an appropriate supplemental measure of operating performance because, by excluding gains or losses on dispositions of operating properties and excluding depreciation, FFO can help one compare the operating performance of a company's real estate between periods or as compared to different companies. A reconciliation of net income to FFO is provided below: Three Months Ended Nine Months Ended September 30, September 30, ------------------ ------------------ 2004 2003 (a) 2004 2003 (a) ------------------ ------------------ Net income $5,807 $5,938 $22,849 $20,180 Real estate depreciation 26,741 25,844 78,987 77,129 Adjustments for unconsolidated joint ventures 523 529 1,570 1,588 (Gain) on sale of properties held in joint ventures - - - (1,436) Income allocated to common units 553 593 2,078 1,482 --------- -------- --------- -------- Funds from operations - diluted $33,624 $32,904 $105,484 $98,943 ========= ======== ========= ======== Weighted average number of common and common equivalent shares outstanding: EPS diluted 42,574 41,465 42,381 41,170 FFO diluted 44,449 43,343 44,257 43,050 Net income per common share - diluted $0.14 $0.14 $0.54 $0.49 FFO per common share - diluted $0.76 $0.76 $2.38 $2.30 (a) FFO for the three months ended and nine months ended September 30, 2003 previously included a reduction of $0.1 million and $2.2 million respectively from gains on sales of undepreciated property. We have adjusted FFO to include these types of gains as they currently do not meet NAREITs definition of gains that should be adjusted from net income in calculating FFO. 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: 4Q04 Range 2004 Range Low High Low High ---------------- ---------------- Expected net income per share - diluted $0.12 $0.24 $0.66 $0.78 Expected real estate depreciation 0.64 0.64 2.42 2.42 Expected adjustments for unconsolidated joint ventures 0.02 0.02 0.05 0.05 Expected income allocated to common units 0.02 0.02 0.06 0.06 ---------------- ---------------- Expected FFO per share - diluted $0.80 $0.92 $3.18 $3.30 Note: This table contains forward-looking statements. Please see the paragraph regarding forward-looking statements. 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 Nine Months Ended September 30, September 30, ------------------- -------------------- 2004 2003 2004 2003 --------- --------- --------- ---------- Net income $5,807 $5,938 $22,849 $20,180 Development and construction fees (1,516) (1,521) (5,348) (4,114) Management fees (446) (423) (1,291) (1,288) Other revenues (1,917) (802) (7,999) (3,447) Property management expense 2,901 2,533 8,512 7,494 Fee and asset management expense 850 598 2,845 3,229 General and administrative expense 4,074 3,878 12,400 11,926 Other expenses - - - 1,389 Interest expense 19,305 18,584 59,701 55,459 Amortization of deferred financing costs 767 658 2,250 1,923 Depreciation 27,149 26,353 80,299 78,699 Gain on sale of land - (89) (1,255) (2,171) Impairment loss on land held for sale - - 1,143 - Equity in income of joint ventures (93) (4) (259) (3,152) Distributions on perpetual preferred units 2,664 3,218 8,350 9,654 Original issuance costs on redeemed perpetual preferred units 745 - 745 - Income allocated to common units 553 593 2,078 1,482 --------- --------- --------- ---------- Net Operating Income (NOI) $60,843 $59,514 $185,020 $177,263 "Same Property" net operating income $55,855 $56,347 $170,754 $169,903 Non-"Same Property" net operating income 3,973 2,789 11,669 6,874 Development and Lease-Up net operating income 1,012 356 2,617 466 Dispositions / Other net operating income 3 22 (20) 20 --------- --------- --------- ---------- Net Operating Income (NOI) $60,843 $59,514 $185,020 $177,263 EBITDA - ------ EBITDA is defined by the Company as earnings before interest, taxes, depreciation and amortization, including net operating income from discontinued operations, excluding equity in income of joint ventures, gain on sale of real estate assets, and income allocated to minority interests. The Company considers EBITDA to be an appropriate supplemental measure of operating performance to net income because it represents income before non-cash depreciation and the cost of debt, and excludes gains or losses from property dispositions. A reconciliation of net income to EBITDA is provided below: Three Months Ended Nine Months Ended September 30, September 30, ------------------- -------------------- 2004 2003 2004 2003 --------- --------- --------- ---------- Net income $5,807 $5,938 $22,849 $20,180 Interest expense 19,305 18,584 59,701 55,459 Amortization of deferred financing costs 767 658 2,2501,923 Depreciation 27,149 26,353 80,299 78,699 Distributions on perpetual preferred units 2,664 3,218 8,350 9,654 Original issuance costs on redeemed perpetual preferred units 745 - 745 - Income allocated to common units 553 593 2,078 1,482 Gain on sale of land - (89) (1,255) (2,171) Impairment loss on land held for sale - - 1,143 - Equity in income of joint ventures (93) (4) (259) (3,152) --------- --------- --------- ---------- EBITDA $56,897 $55,251 $175,901 $162,074 CONTACT: Camden Property Trust, Houston Investor Relations Department Kim Callahan, 800-922-6336 or 713-354-2787 http://www.camdenliving.com -----END PRIVACY-ENHANCED MESSAGE-----