EX-99.1 2 a5388308ex991.txt EXHIBIT 99.1 Exhibit 99.1 Camden Property Trust Announces First Quarter 2007 Operating Results HOUSTON--(BUSINESS WIRE)--April 26, 2007--Camden Property Trust (NYSE:CPT) announced that its funds from operations ("FFO") for the first quarter of 2007 totaled $0.89 per diluted share or $55.9 million, as compared to $0.88 per diluted share or $51.8 million reported for the same period in 2006. The Company reported net income ("EPS") of $13.0 million or $0.22 per diluted share for the first quarter of 2007 compared to $41.4 million or $0.75 per diluted share for the same period in 2006. EPS for the three months ended March 31, 2006 included a $0.50 per diluted share impact from gain on sale of properties and discontinued operations. A reconciliation of net income to FFO is included in the financial tables accompanying this press release. Same-Property Results For the 44,604 apartment homes included in consolidated same-property results, first quarter 2007 same-property net operating income ("NOI") growth was 5.5% compared to the first quarter of 2006, with revenues increasing 5.1% and operating expenses increasing 4.4%. On a sequential basis, first quarter 2007 same-property NOI increased 2.6% compared to fourth quarter 2006, with revenues increasing 1.6% and expenses increasing 0.1% compared to the prior quarter. Same-property physical occupancy levels for the portfolio averaged 94.4% during the first quarter of 2007, compared to 96.0% in the first quarter of 2006 and 94.1% in the fourth quarter of 2006. The Company defines same-property communities as communities owned by Camden and stabilized as of January 1, 2006, excluding properties held for sale and communities under redevelopment. 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 As of March 31, 2007, Camden had five completed apartment communities in lease-up: Camden Clearbrook in Frederick, MD, a $46.0 million project that is currently 91% leased; Camden Manor Park in Raleigh, NC, a $52.0 million project that is currently 87% leased; Camden Westwind in Ashburn, VA, a $97.6 million project that is currently 76% leased; Camden Old Creek in San Marcos, CA, a $98.0 million project that is currently 61% leased; and Camden Royal Oaks in Houston, TX, a $22.0 million project that is currently 52% leased. The Company's current development pipeline under construction includes six wholly-owned communities comprising 2,046 apartment homes with a total budgeted cost of $422.0 million. Camden also has five joint venture communities under development comprising 1,528 apartment homes with a total budgeted cost of $367.9 million. The Company's future development pipeline currently consists of 16 potential developments comprising 5,368 apartment homes and a total estimated cost of nearly $1.4 billion. The future pipeline represents projects in the early phase of the development process for which Camden either owns the land, has an option to acquire the land or enter into a leasehold interest, or is the buyer under a long-term conditional contract. Acquisition/Disposition Activity There was no acquisition or disposition activity during the first quarter of 2007. Subsequent to quarter-end, the Company acquired Camden South Congress, a 253-home apartment community in Austin, TX. Properties and Land Held for Sale At March 31, 2007, Camden had three operating communities consisting of 930 apartment homes classified as held for sale: Camden Downs, a 254-home apartment community in Louisville, KY; Camden Taravue, a 304-home apartment community in St. Louis, MO; and Camden Trace, a 372-home apartment community in St. Louis, MO. The Company also had 5.7 acres of undeveloped land in Miami, FL, Boca Raton, FL and Dallas, TX classified as held for sale at quarter-end. Earnings Guidance Camden maintained its earnings guidance for 2007 based on its current and expected views of the apartment market and general economic conditions. Full-year 2007 FFO is expected to be between $3.60 and $3.90 per diluted share, and full-year 2007 EPS is expected to be between $0.95 and $1.25 per diluted share. Second quarter 2007 earnings guidance is $0.88 to $0.92 per diluted share for FFO and $0.21 to $0.25 per diluted share for EPS. Guidance for EPS excludes potential future gains on the sale of operating properties. Camden intends to update its earnings guidance to the market on a quarterly basis. The Company's 2007 earnings guidance is based on projections of same-property NOI growth between 5.5% and 7.5%, acquisitions of $0 - $100 million, dispositions of $175 - $450 million and new development starts of $350 - $500 million. 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, April 27, 2007 at 9:00 a.m. Central Time to review its first quarter results and discuss its outlook for future performance. To participate in the call, please dial (877) 407-0778 (domestic) or (201) 689-8565 (international) by 8:50 a.m. Central Time and request the Camden Property Trust First Quarter 2007 Earnings Call, 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 under Earnings Releases 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 188 properties containing 64,769 apartment homes across the United States. Upon completion of 11 properties under development, the Company's portfolio will increase to 68,343 apartment homes in 199 properties. For additional information, please contact Camden's Investor Relations Department at (800) 922-6336 or (713) 354-2787 or access our website at www.camdenliving.com. CAMDEN OPERATING RESULTS (In thousands, except per share and property data amounts) --------------------------------------------------------------------- (Unaudited) Three Months Ended March 31, --------------------- OPERATING DATA 2007 2006 ----------------------------------------------- --------------------- Property revenues Rental revenues $137,381 $133,255 Other property revenues 15,267 12,559 --------------------- Total property revenues 152,648 145,814 Property expenses Property operating and maintenance 40,447 38,371 Real estate taxes 16,534 16,317 --------------------- Total property expenses 56,981 54,688 Non-property income Fee and asset management 2,386 2,477 Interest and other income 1,562 753 Income on deferred compensation plans 2,306 50 --------------------- Total non-property income 6,254 3,280 Other expenses Property management 4,728 4,226 Fee and asset management 1,620 1,366 General and administrative 8,054 7,414 Interest 27,908 31,037 Depreciation and amortization 40,321 36,681 Amortization of deferred financing costs 916 1,047 Expense on deferred compensation plans 2,306 50 --------------------- Total other expenses 85,853 81,821 --------------------- Income from continuing operations before gain on sale of properties, equity in income of joint ventures, minority interests and income taxes 16,068 12,585 Gain on sale of properties, including land - 499 Equity in income of joint ventures 735 2,317 Minority interests: Distributions on perpetual preferred units (1,750) (1,750) Income allocated to common units and other minority interests (904) (1,256) --------------------- Income from continuing operations before income taxes 14,149 12,395 Income tax expense (721) - Income tax expense on sale of depreciable operating properties (1,184) - --------------------- Income from continuing operations 12,244 12,395 Income from discontinued operations 946 2,476 Gain on sale of discontinued operations - 27,392 Income from discontinued operations allocated to common units (153) (820) --------------------- Net income $13,037 $41,443 ===================== PER SHARE DATA ----------------------------------------------- Net income - basic $0.22 $0.76 Net income - diluted 0.22 0.75 Income from continuing operations - basic 0.21 0.23 Income from continuing operations - diluted 0.21 0.23 Weighted average number of common and common equivalent shares outstanding: Basic 58,813 54,290 Diluted 59,994 55,474 PROPERTY DATA ----------------------------------------------- Total operating properties (end of period) (a) 187 187 Total operating apartment homes in operating properties (end of period) (a) 64,516 64,384 Total operating apartment homes (weighted average) 53,097 57,177 Total operating apartment homes - excluding discontinued operations (weighted average) 52,167 53,448 (a) 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 FUNDS FROM OPERATIONS (In thousands, except per share and property data amounts) --------------------------------------------------------------------- (Unaudited) Three Months Ended March 31, -------------------- FUNDS FROM OPERATIONS 2007 2006 ------------------------------------------------ -------------------- Net income $13,037 $41,443 Real estate depreciation and amortization from continuing operations 39,606 36,027 Real estate depreciation from discontinued operations - 718 Adjustments for unconsolidated joint ventures 1,086 781 Income from continuing operations allocated to common units 853 1,205 Income from discontinued operations allocated to common units 153 820 (Gain) on sale of operating properties, net of taxes 1,184 - (Gain) on sale of discontinued operations - (27,392) (Gain) on sale of joint venture properties - (1,763) -------------------- Funds from operations - diluted $55,919 $51,839 ==================== PER SHARE DATA ------------------------------------------------ Funds from operations - diluted $0.89 $0.88 Cash distributions 0.69 0.66 Weighted average number of common and common equivalent shares outstanding: FFO - diluted 63,021 58,988 PROPERTY DATA ------------------------------------------------ Total operating properties (end of period) (a) 187 187 Total operating apartment homes in operating properties (end of period) (a) 64,516 64,384 Total operating apartment homes (weighted average) 53,097 57,177 Total operating apartment homes - excluding discontinued operations (weighted average) 52,167 53,448 (a) 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 SHEETS (In thousands) --------------------------------------------------------------------- (Unaudited) Mar 31, Dec 31, Sep 30, 2007 2006 2006 --------------------------------- ASSETS Real estate assets, at cost Land $703,850 $693,312 $683,645 Buildings and improvements 4,108,955 4,036,286 3,988,031 --------------------------------- 4,812,805 4,729,598 4,671,676 Accumulated depreciation (799,624) (762,011) (725,790) --------------------------------- Net operating real estate assets 4,013,181 3,967,587 3,945,886 Properties under development, including land 410,002 369,861 351,246 Investments in joint ventures 8,321 9,245 8,266 Properties held for sale, including land 32,879 32,763 45,074 --------------------------------- Total real estate assets 4,464,383 4,379,456 4,350,472 Accounts receivable - affiliates 34,854 34,170 33,624 Notes receivable Affiliates 43,507 41,478 31,037 Other 11,565 3,855 3,855 Other assets, net (a) 118,329 121,336 112,801 Cash and cash equivalents 1,470 1,034 8,061 Restricted cash 5,772 4,721 5,541 --------------------------------- Total assets $4,679,880 $4,586,050 $4,545,391 ================================= LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Notes payable Unsecured $1,897,865 $1,759,498 $1,693,106 Secured 568,731 571,478 587,347 Accounts payable and accrued expenses 110,486 124,834 120,566 Accrued real estate taxes 16,036 23,306 41,165 Other liabilities (b) 110,684 105,999 101,332 Distributions payable 45,137 43,068 43,056 --------------------------------- Total liabilities 2,748,939 2,628,183 2,586,572 Commitments and contingencies Minority interests Perpetual preferred units 97,925 97,925 97,925 Common units 102,217 115,280 116,776 Other minority interests 10,335 10,306 10,002 --------------------------------- Total minority interests 210,477 223,511 224,703 Shareholders' equity Common shares of beneficial interest 654 650 650 Additional paid-in capital 2,199,713 2,183,622 2,176,170 Distributions in excess of net income (243,786) (213,665) (206,442) Employee notes receivable (2,025) (2,036) (2,047) Treasury shares, at cost (234,092) (234,215) (234,215) --------------------------------- Total shareholders' equity 1,720,464 1,734,356 1,734,116 --------------------------------- Total liabilities and shareholders' equity $4,679,880 $4,586,050 $4,545,391 ================================= (a) includes: net deferred charges of: $9,724 $10,295 $11,155 value of in place leases of: $61 $242 $452 (b) includes: deferred revenues of: $3,321 $3,875 $5,256 above/below market leases of: $8 $32 $80 distributions in excess of investments in joint ventures of: $18,805 $18,350 $18,044 (Unaudited) Jun 30, Mar 31, 2006 2006 ---------------------- ASSETS Real estate assets, at cost Land $697,690 $664,219 Buildings and improvements 4,074,737 3,892,700 ---------------------- 4,772,427 4,556,919 Accumulated depreciation (786,208) (732,984) ---------------------- Net operating real estate assets 3,986,219 3,823,935 Properties under development, including land 427,500 419,843 Investments in joint ventures 8,270 8,199 Properties held for sale, including land 55,562 188,477 ---------------------- Total real estate assets 4,477,551 4,440,454 Accounts receivable - affiliates 33,408 33,361 Notes receivable Affiliates 23,327 22,531 Other 9,211 13,264 Other assets, net (a) 111,636 102,269 Cash and cash equivalents 49,700 1,256 Restricted cash 5,194 5,269 ---------------------- Total assets $4,710,027 $4,618,404 ====================== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Notes payable Unsecured $1,940,693 $2,118,403 Secured 620,592 623,250 Accounts payable and accrued expenses 117,301 116,215 Accrued real estate taxes 31,280 17,818 Other liabilities (b) 99,460 98,327 Distributions payable 43,031 40,612 ---------------------- Total liabilities 2,852,357 3,014,625 Commitments and contingencies Minority interests Perpetual preferred units 97,925 97,925 Common units 106,217 113,034 Other minority interests 10,555 10,512 ---------------------- Total minority interests 214,697 221,471 Shareholders' equity Common shares of beneficial interest 649 610 Additional paid-in capital 2,172,616 1,908,099 Distributions in excess of net income (293,386) (289,482) Employee notes receivable (2,035) (2,046) Treasury shares, at cost (234,871) (234,873) ---------------------- Total shareholders' equity 1,642,973 1,382,308 ---------------------- Total liabilities and shareholders' equity $4,710,027 $4,618,404 ====================== (a) includes: net deferred charges of: $13,120 $14,079 value of in place leases of: $431 $1,156 (b) includes: deferred revenues of: $4,408 $4,843 above/below market leases of: $13 $51 distributions in excess of investments in joint ventures of: $12,701 $11,556 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 generally accepted accounting principles ("GAAP"), excluding gains or losses from 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 March 31, ------------------ 2007 2006 ------------------ Net income $13,037 $41,443 Real estate depreciation and amortization from continuing operations 39,606 36,027 Real estate depreciation from discontinued operations - 718 Adjustments for unconsolidated joint ventures 1,086 781 Income from continuing operations allocated to common units 853 1,205 Income from discontinued operations allocated to common units 153 820 (Gain) on sale of operating properties, net of taxes 1,184 - (Gain) on sale of discontinued operations - (27,392) (Gain) on sale of joint venture properties - (1,763) ------------------ Funds from operations - diluted $55,919 $51,839 ================== Weighted average number of common and common equivalent shares outstanding: EPS diluted 59,994 55,474 FFO diluted 63,021 58,988 Net income per common share - diluted $0.22 $0.75 FFO per common share - diluted $0.89 $0.88 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: 2Q07 Range 2007 Range Low High Low High ------------------ ------------------ Expected net income per share - diluted $0.21 $0.25 $0.95 $1.25 Expected difference between EPS and fully diluted FFO shares (0.01) (0.01) (0.05) (0.05) Expected real estate depreciation 0.64 0.64 2.53 2.53 Expected adjustments for unconsolidated joint ventures 0.02 0.02 0.06 0.06 Expected income allocated to common units 0.02 0.02 0.09 0.09 Expected (gain) on sale of properties held in joint ventures 0.00 0.00 0.00 0.00 Expected (gain) on sale of properties and properties held for sale 0.00 0.00 0.02 0.02 ------------------ ------------------ Expected FFO per share - diluted $0.88 $0.92 $3.60 $3.90 Note: This table contains forward-looking statements. Please see the paragraph regarding forward-looking statements earlier in this document. 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 March 31, ------------------ 2007 2006 ------------------ Net income $13,037 $41,443 Fee and asset management (2,386) (2,477) Interest and other income (1,562) (753) Income on deferred compensation plans (2,306) (50) Property management expense 4,728 4,226 Fee and asset management expense 1,620 1,366 General and administrative expense 8,054 7,414 Interest expense 27,908 31,037 Depreciation and amortization 40,321 36,681 Amortization of deferred financing costs 916 1,047 Expense on deferred compensation plans 2,306 50 Gain on sale of properties, including land - (499) Equity in income of joint ventures (735) (2,317) Distributions on perpetual preferred units 1,750 1,750 Income allocated to common units and other minority interests 904 1,256 Income tax expense 721 - Income tax expense on sale of depreciable operating properties 1,184 - Income from discontinued operations (946) (2,476) Gain on sale of discontinued operations - (27,392) Income from discontinued operations allocated to common units 153 820 ------------------ Net Operating Income (NOI) $95,667 $91,126 "Same Property" Communities $80,426 $76,212 Non-"Same Property" Communities 7,288 4,869 Development and Lease-Up Communities 2,424 308 Redevelopment Communities 4,919 4,946 Dispositions / Other 610 4,791 ------------------ Net Operating Income (NOI) $95,667 $91,126 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 March 31, ------------------ 2007 2006 ------------------ Net income $13,037 $41,443 Interest expense 27,908 31,037 Amortization of deferred financing costs 916 1,047 Depreciation and amortization 40,321 36,681 Distributions on perpetual preferred units 1,750 1,750 Income allocated to common units and other minority interests 904 1,256 Income tax expense 721 - Income tax expense on sale of depreciable operating properties 1,184 - Real estate depreciation from discontinued operations - 718 Gain on sale of properties, including land - (499) Equity in income of joint ventures (735) (2,317) Gain on sale of discontinued operations - (27,392) Income from discontinued operations allocated to common units 153 820 ------------------ EBITDA $86,159 $84,544 CONTACT: Camden Property Trust, Houston Kim Callahan, 713-354-2549