EX-99.1 2 a5006755ex99-1.txt EXHIBIT 99.1 Exhibit 99.1 Camden Property Trust Announces Third Quarter 2005 Operating Results HOUSTON--(BUSINESS WIRE)--Oct. 27, 2005--Camden Property Trust (NYSE:CPT) announced that its Funds from Operations ("FFO") for the third quarter of 2005 totaled $0.76 per diluted share or $44.4 million, as compared to $0.76 per diluted share or $33.6 million reported for the third quarter of 2004. FFO for the nine months ended September 30, 2005 totaled $2.63 per diluted share or $145.8 million, as compared to $2.38 per diluted share or $105.5 million reported for the same period in 2004. FFO for the nine months ended September 30, 2005 included a $0.44 per diluted share impact from the sale of technology investments and a $0.25 per diluted share charge for transaction compensation and merger expenses relating to Camden's merger with Summit Properties Inc. ("Summit"). Net Income ("EPS") The Company reported a net loss of $2.3 million or $0.05 per diluted share for the third quarter of 2005, primarily due to a $0.17 per diluted share charge related to the amortization of acquired in place leases and a $0.04 per diluted share charge for early retirement of joint venture debt. Net income for the third quarter of 2004 was $5.8 million or $0.14 per diluted share. For the nine months ended September 30, 2005, net income totaled $186.2 million or $3.39 per diluted share compared to $22.8 million or $0.54 per diluted share for the same period in 2004. Net income for the nine months ended September 30, 2005 included a $3.03 per diluted share impact from gain on sale of properties and discontinued operations, a $0.44 per diluted share impact from the sale of technology investments, a $0.40 per diluted share charge related to the amortization of acquired in place leases, and a $0.25 per diluted share charge for transaction compensation and merger expenses relating to Camden's merger with Summit Properties Inc. A reconciliation of net income ("EPS") to FFO is included in the financial tables accompanying this press release. Same-Property Results For the 49,936 apartment homes included in consolidated same-property results, third quarter 2005 same-property net operating income ("NOI") growth was 4.4% compared to the third quarter of 2004, with revenues increasing 4.9% and operating expenses increasing 5.6%. On a sequential basis, third quarter 2005 same-property NOI declined 0.5% compared to second quarter 2005, with revenues increasing 2.0% and expenses increasing 6.0% compared to the prior quarter. On a year-to-date basis, 2005 same-property NOI increased 2.7%, with revenue growth of 3.1% and expense growth of 3.7% compared to the same period in 2004. Same-property physical occupancy levels for the combined portfolio averaged 96.0% during the third quarter of 2005, compared to 94.6% in the third quarter of 2004 and 95.2% in the second quarter of 2005. For the 38,853 apartment homes included in Camden's same-property results, third quarter 2005 revenues increased 4.0% while operating expenses increased 3.8%, producing a 4.2% increase in same-property net operating income ("NOI") compared to the third quarter of 2004. On a sequential basis, third quarter 2005 same-property NOI declined 1.5% compared to the second quarter of 2005, with revenues increasing 1.7% and expenses increasing 6.4% compared to the prior quarter. On a year-to-date basis, 2005 same-property NOI increased 2.4%, with revenue growth of 2.4% and expense growth of 2.5% compared to the same period in 2004. For the 11,083 same-property apartment homes acquired from Summit, third quarter 2005 revenues increased 7.2% while operating expenses increased 11.9%, producing a 4.8% increase in same-property net operating income ("NOI") compared to the third quarter of 2004. On a sequential basis, third quarter 2005 same-property NOI increased by 1.9% compared to the second quarter of 2005, with revenues increasing 2.9% and expenses increasing 4.9% compared to the prior quarter. On a year-to-date basis, 2005 same-property NOI increased 3.5%, with revenue growth of 4.9% and expense growth of 7.7% compared to the same period in 2004. A reconciliation of net income to net operating income and same-property net operating income is included in the financial tables accompanying this press release. Development Activity The Company completed construction on two apartment communities during the third quarter. Camden Lago Vista in Orlando, FL, was completed during the quarter and is currently 95% leased and occupied. Camden Farmers Market II in Dallas, TX was also completed and is currently 51% leased, with stabilization expected in early 2006. Camden continued construction on nine other development communities, including one joint venture community. Of those projects, two are currently in lease-up: Camden Westwind in Ashburn, VA (joint venture), and Camden Fairfax Corner in Fairfax, VA. Those projects are currently 30% leased and 16% leased, respectively. The remaining seven communities under construction are expected to begin lease-ups in late 2005 or during 2006. Acquisition/Disposition Activity During the quarter, the Company completed the acquisition of Camden World Gateway, a 408-home apartment community in Orlando, FL for $58.5 million. Subsequent to quarter-end, the Company acquired Camden Gaines Ranch, a 390-home apartment community in Austin, TX for $43.0 million. Dispositions for the quarter included Summit Lenox, a 431-home apartment community in Atlanta, GA sold for $30.2 million, and 2.2 acres of undeveloped land in Dallas, TX sold for $2.0 million. At quarter-end, Camden had two additional communities held for sale: Camden Live Oaks, a 770-home apartment community in Tampa, FL, and Camden Trails, a 264-home apartment community in Dallas, TX. Earnings Guidance Camden updated its 2005 earnings guidance and now expects full-year FFO of $3.44 to $3.49 per diluted share, and fourth quarter FFO of $0.82 to $0.86 per diluted share. EPS is expected to be between $0.02 and $0.06 per diluted share for the fourth quarter of 2005, and between $3.32 and $3.37 for full-year 2005, excluding any future gains from potential property or land sales. 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. Conference Call The Company will hold a conference call on Friday, October 28, 2005 at 9:00 a.m. Central Time to review its third quarter results and discuss its outlook for future performance. To participate in the call, please dial 866-831-6224 (domestic) or 617-213-8853 (international) by 8:50 a.m. Central Time and request the Camden Property Trust Third Quarter Earnings Call, Conference Passcode #56482111, 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. Forward-Looking Statements In addition to historical information, this press release contains forward-looking statements under the federal securities law. These statements are based on current expectations, estimates and projections about the industry and markets in which Camden operates, management's beliefs, and assumptions made by management. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties which are difficult to predict. About Camden Camden Property Trust is a real estate company engaged in the ownership, development, acquisition, management and disposition of multifamily apartment communities. Camden owns interests in and operates 194 properties containing 67,009 apartment homes across the United States. Upon completion of nine properties under development, the Company's portfolio will increase to 70,220 apartment homes in 203 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. OPERATING RESULTS (In thousands, except per share and CAMDEN property data amounts) ---------------------------------------------------------------------- (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, -------------------- -------------------- OPERATING DATA 2005 2004 2005 (a) 2004 ---------------------------- -------------------- -------------------- Property revenues Rental revenues $129,309 $92,347 $360,761 $275,547 Other property revenues 11,899 8,562 32,769 24,880 -------------------- -------------------- Total property revenues 141,208 100,909 393,530 300,427 Property expenses Property operating and maintenance 40,590 31,680 111,612 90,324 Real estate taxes 15,231 10,958 43,534 33,051 -------------------- -------------------- Total property expenses 55,821 42,638 155,146 123,375 Non-property income Fee and asset management 1,789 1,962 10,929 6,639 Sale of technology investments - - 24,199 863 Interest and other income 1,913 1,917 6,401 7,136 -------------------- -------------------- Total non-property income 3,702 3,879 41,529 14,638 Other expenses Property management 4,208 2,901 11,350 8,512 Fee and asset management 2,008 850 4,999 2,845 General and administrative 6,183 4,074 18,017 12,400 Transaction compensation and merger expenses - - 14,085 - Interest 29,331 19,305 81,416 59,701 Amortization of deferred financing costs 855 767 2,872 2,250 Amortization of acquired in place leases 9,498 - 22,161 - Depreciation and amortization 36,076 25,748 100,923 76,109 -------------------- -------------------- Total other expenses 88,159 53,645 255,823 161,817 -------------------- -------------------- Income from continuing 930 8,505 24,090 29,873 operations before gain on sale of properties, equity in income (losses) of joint ventures and minority interests Gain on sale of properties, including land - - 132,128 1,255 Equity in income (losses) of joint ventures (1,827) 93 (1,472) 259 Income allocated to minority interests Distributions on perpetual preferred units (1,750) (2,664) (5,278) (8,350) Original issuance costs on redeemed perpetual preferred units - (745) (365) (745) Income allocated to common units and other minority interests (373) (515) (2,099) (1,956) -------------------- -------------------- Income (loss) from continuing operations (3,020) 4,674 147,004 20,336 Income from discontinued operations 703 1,171 3,091 3,778 Income from discontinued operations allocated to common units - (38) - (122) Impairment loss on land held for sale - - - (1,143) Gain on sale of discontinued operations - - 36,104 - -------------------- -------------------- Net income (loss) ($2,317) $5,807 $186,199 $22,849 ==================== ==================== PER SHARE DATA ---------------------------- Net income (loss) - basic ($0.04) $0.14 $3.63 $0.57 Net income (loss) - diluted (0.05) 0.14 3.39 0.54 Income (loss) from continuing operations - basic (0.05) 0.11 2.87 0.51 Income (loss) from continuing operations - diluted (0.06) 0.11 2.68 0.48 Weighted average number of common and common equivalent shares outstanding: Basic 54,018 40,377 51,294 40,234 Diluted 55,671 42,574 55,494 42,381 PROPERTY DATA ---------------------------- Total operating properties (end of period) (b) 193 145 193 145 Total operating apartment homes in operating properties (end of period) (b) 66,619 52,008 66,619 52,008 Total operating apartment homes (weighted average) 56,150 47,192 53,678 47,039 Total operating apartment homes - excluding discontinued operations (weighted average) 55,056 44,720 52,907 44,567 (a) The Company's 2005 financial results include the results of Summit subsequent to February 28, 2005. (b) Includes joint ventures and properties held for sale. Note: Please refer to following pages for definitions and reconciliations of all non-GAAP financial measures presented in this document. FUNDS FROM OPERATIONS (In thousands, except per share and CAMDEN property data amounts) ---------------------------------------------------------------------- (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, -------------------- -------------------- FUNDS FROM OPERATIONS 2005 2004 2005 (a) 2004 ---------------------------- -------------------- -------------------- Net income (loss) ($2,317) $5,807 $186,199 $22,849 Real estate depreciation and amortization from continuing operations 44,930 25,340 121,206 74,797 Real estate depreciation from discontinued operations 233 1,401 1,420 4,190 Adjustments for unconsolidated joint ventures 1,284 523 3,249 1,570 Income from continuing operations allocated to common units 241 515 1,969 1,956 Income from discontinued operations allocated to common units - 38 - 122 (Gain) on sale of operating properties - - (132,117) - (Gain) on sale of discontinued operations - - (36,104) - -------------------- -------------------- Funds from operations - diluted $44,371 $33,624 $145,822 $105,484 ==================== ==================== PER SHARE DATA ---------------------------- Funds from operations - diluted $0.76 $0.76 $2.63 $2.38 Cash distributions 0.64 0.64 1.91 1.91 Weighted average number of common and common equivalent shares outstanding: FFO - diluted 58,600 44,449 55,494 44,257 PROPERTY DATA ---------------------------- Total operating properties (end of period) (b) 193 145 193 145 Total operating apartment homes in operating properties (end of period) (b) 66,619 52,008 66,619 52,008 Total operating apartment homes (weighted average) 56,150 47,192 53,678 47,039 Total operating apartment homes - excluding discontinued operations (weighted average) 55,056 44,720 52,907 44,567 (a) The Company's 2005 financial results include the results of Summit subsequent to February 28, 2005. (b) Includes joint ventures and properties held for sale. Note: Please refer to following pages for definitions and reconciliations of all non-GAAP financial measures presented in this document. CAMDEN BALANCE SHEETS (In thousands) ---------------------------------------------------------------------- (Unaudited) Sep 30, Jun 30, Mar 31, 2005 2005 2005 ------------ ------------ ------------- ASSETS Real estate assets, at cost Land $660,748 $657,433 $655,321 Buildings and improvements 3,881,682 3,839,732 3,810,003 ------------ ------------ ------------- 4,542,430 4,497,165 4,465,324 Accumulated depreciation (713,991) (694,120) (658,683) ------------ ------------ ------------- Net operating real estate assets 3,828,439 3,803,045 3,806,641 Properties under development, including land 377,787 368,022 348,202 Investment in joint ventures 31,389 37,074 38,107 Properties held for sale 51,741 39,930 72,338 ------------ ------------ ------------- Total real estate assets 4,289,356 4,248,071 4,265,288 Accounts receivable - affiliates 35,313 35,084 33,587 Notes receivable Affiliates 11,505 11,108 10,729 Other 24,865 32,283 32,274 Other assets, net (a) 100,080 101,475 95,941 Cash and cash equivalents 1,076 6,432 6,351 Restricted cash 5,829 6,375 5,835 ------------ ------------ ------------- Total assets $4,468,024 $4,440,828 $4,450,005 ============ ============ ============= LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Notes payable Unsecured $1,903,094 $1,860,107 $1,900,710 Secured 661,723 672,557 675,473 Accounts payable 59,248 61,220 54,975 Accrued real estate taxes 39,740 29,510 17,179 Accrued expenses and other liabilities (b) 152,270 130,993 131,155 Distributions payable 38,933 39,513 15,223 ------------ ------------ ------------- Total liabilities 2,855,008 2,793,900 2,794,715 Commitments and contingencies Minority interests Perpetual preferred units 97,925 97,925 97,925 Common units 115,190 118,119 121,734 Other minority interests 10,425 9,878 9,880 ------------ ------------ ------------- Total minority interests 223,540 225,922 229,539 Shareholders' equity Common shares of beneficial interest 607 606 605 Additional paid-in capital 1,913,930 1,910,750 1,903,541 Distributions in excess of net income (273,609) (236,954) (224,533) Unearned restricted share awards (14,217) (15,732) (15,185) Employee notes receivable (2,087) (2,084) (3,097) Treasury shares, at cost (235,148) (235,580) (235,580) ------------ ------------ ------------- Total shareholders' equity 1,389,476 1,421,006 1,425,751 ------------ ------------ ------------- Total liabilities and shareholders' equity $4,468,024 $4,440,828 $4,450,005 ============ ============ ============= (a) includes: net deferred charges of: $13,757 $14,266 $13,386 value of in place leases of: $10,561 $18,995 $29,186 (b) includes: deferred revenues of: $34,508 $34,990 $35,797 above/below market leases of: $889 $1,675 $2,537 (Unaudited) Dec 31, Sep 30, 2004 2004 ------------- --------------- ASSETS Real estate assets, at cost Land $399,054 $406,760 Buildings and improvements 2,511,195 2,583,555 ------------- --------------- 2,910,249 2,990,315 Accumulated depreciation (688,333) (680,184) ------------- --------------- Net operating real estate assets 2,221,916 2,310,131 Properties under development, including land 176,769 174,351 Investment in joint ventures 9,641 10,076 Properties held for sale 62,418 1,800 ------------- --------------- Total real estate assets 2,470,744 2,496,358 Accounts receivable - affiliates 31,380 30,434 Notes receivable Affiliates 10,367 10,010 Other 44,547 53,599 Other assets, net (a) 66,164 49,804 Cash and cash equivalents 2,253 2,465 Restricted cash 3,909 4,259 ------------- --------------- Total assets $2,629,364 $2,646,929 ============= =============== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Notes payable Unsecured $1,407,208 $1,435,197 Secured 169,197 170,129 Accounts payable 31,904 28,794 Accrued real estate taxes 27,324 32,732 Accrued expenses and other liabilities (b) 65,237 48,192 Distributions payable 30,412 30,331 ------------- --------------- Total liabilities 1,731,282 1,745,375 Commitments and contingencies Minority interests Perpetual preferred units 115,060 115,060 Common units 44,507 43,881 Other minority interests - - ------------- --------------- Total minority interests 159,567 158,941 Shareholders' equity Common shares of beneficial interest 486 486 Additional paid-in capital 1,348,848 1,346,040 Distributions in excess of net income (361,973) (353,996) Unearned restricted share awards (13,023) (14,069) Employee notes receivable - - Treasury shares, at cost (235,823) (235,848) ------------- --------------- Total shareholders' equity 738,515 742,613 ------------- --------------- Total liabilities and shareholders' equity $2,629,364 $2,646,929 ============= =============== (a) includes: net deferred charges of: $11,361 $8,917 value of in place leases of: - - (b) includes: deferred revenues of: $2,280 $1,657 above/below market leases of: - - 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, -------------------- -------------------- 2005 2004 2005 2004 -------------------- -------------------- Net income (loss) ($2,317) $5,807 $186,199 $22,849 Real estate depreciation and amortization from continuing operations 44,930 25,340 121,206 74,797 Real estate depreciation from discontinued operations 233 1,401 1,420 4,190 Adjustments for unconsolidated joint ventures 1,284 523 3,249 1,570 Income from continuing operations allocated to common units 241 515 1,969 1,956 Income from discontinued operations allocated to common units - 38 - 122 (Gain) on sale of operating properties - - (132,117) - (Gain) on sale of discontinued operations - - (36,104) - -------------------- -------------------- Funds from operations - diluted $44,371 $33,624 $145,822 $105,484 ==================== ==================== Weighted average number of common and common equivalent shares outstanding: EPS diluted 55,671 42,574 55,494 42,381 FFO diluted 58,600 44,449 55,494 44,257 Net income (loss) per common share - diluted $(0.05) $0.14 $3.39 $0.54 FFO per common share - diluted $0.76 $0.76 $2.63 $2.38 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: 4Q05 Range 2005 Range Low High Low High -------------------- -------------------- Expected net income (loss) per share - diluted $0.02 $0.06 $3.32 $3.37 Expected real estate depreciation 0.77 0.77 2.99 2.99 Expected adjustments for unconsolidated joint ventures 0.02 0.02 0.08 0.08 Expected income allocated to common units 0.01 0.01 0.04 0.04 Expected (gain) on sale of properties and properties held for sale 0.00 0.00 (2.99) (2.99) -------------------- -------------------- Expected FFO per share - diluted $0.82 $0.86 $3.44 $3.49 Note: This table contains 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, -------------------- -------------------- 2005 2004 2005 2004 -------------------- -------------------- Net income (loss) ($2,317) $5,807 $186,199 $22,849 Fee and asset management (1,789) (1,962) (10,929) (6,639) Sale of technology investments - - (24,199) (863) Interest and other income (1,913) (1,917) (6,401) (7,136) Property management expense 4,208 2,901 11,350 8,512 Fee and asset management expense 2,008 850 4,999 2,845 General and administrative expense 6,183 4,074 18,017 12,400 Transaction compensation and merger expenses - - 14,085 - Interest expense 29,331 19,305 81,416 59,701 Amortization of deferred financing costs 855 767 2,872 2,250 Amortization of acquired in place leases 9,498 - 22,161 - Depreciation and amortization 36,076 25,748 100,923 76,109 Gain on sale of properties, including land - - (132,128) (1,255) Impairment loss on land held for sale - - - 1,143 Equity in (income) losses of joint ventures 1,827 (93) 1,472 (259) Distributions on perpetual preferred units 1,750 2,664 5,278 8,350 Original issuance costs on redeemed perpetual preferred units - 745 365 745 Income allocated to common units and other minority interests 373 515 2,099 1,956 Income from discontinued operations (703) (1,171) (3,091) (3,778) Income from discontinued operations allocated to common units - 38 - 122 Gain on sale of discontinued operations - - (36,104) - -------------------- -------------------- Net Operating Income (NOI) $85,387 $58,271 $238,384 $177,052 CPT-"Same Property" Communities $50,756 $48,723 $152,149 $148,652 Summit-"Same Property" Communities 22,549 - 51,856 - CPT Non-"Same Property" Communities 4,083 3,159 12,414 9,029 Summit Non-"Same Property" Communities 6,054 - 12,700 - Development and Lease-Up Communities 438 - 671 - Dispositions / Other 1,507 6,389 8,594 19,371 -------------------- -------------------- Net Operating Income (NOI) $85,387 $58,271 $238,384 $177,052 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, -------------------- -------------------- 2005 2004 2005 2004 -------------------- -------------------- Net income (loss) ($2,317) $5,807 $186,199 $22,849 Interest expense 29,331 19,305 81,416 59,701 Amortization of deferred financing costs 855 767 2,872 2,250 Amortization of acquired in place leases 9,498 - 22,161 - Depreciation and amortization 36,076 25,748 100,923 76,109 Distributions on perpetual preferred units 1,750 2,664 5,278 8,350 Original issuance costs on redeemed perpetual preferred units - 745 365 745 Income allocated to common units and other minority interests 373 515 2,099 1,956 Real estate depreciation from discontinued operations 233 1,401 1,420 4,190 Gain on sale of properties, including land - - (132,128) (1,255) Impairment loss on land held for sale - - - 1,143 Equity in income of joint ventures 1,827 (93) 1,472 (259) Gain on sale of discontinued operations - - (36,104) - Income from discontinued operations allocated to common units - 38 - 122 -------------------- -------------------- EBITDA $77,626 $56,897 $235,973 $175,901 CONTACT: Camden Property Trust, Houston Kim Callahan, 713-354-2549