EX-99.1 2 a6281864ex99-1.htm EXHIBIT 99.1 a6281864ex99-1.htm
EXHIBIT 99.1
 
GRAPHIC
 
 
 
CAMDEN PROPERTY TRUST ANNOUNCES
FIRST QUARTER 2010 OPERATING RESULTS

Houston, TEXAS (May 6, 2010) – Camden Property Trust (NYSE: CPT) announced that its funds from operations (“FFO”) for the first quarter of 2010 totaled $0.68 per diluted share or $47.0 million, as compared to $0.88 per diluted share or $51.6 million for the same period in 2009.  The Company reported net income attributable to common shareholders (“EPS”) of $2.3 million or $0.03 per diluted share for the first quarter of 2010, as compared to $6.2 million or $0.11 per diluted share for the same period in 2009.  EPS for the three months ended March 31, 2009 included a $0.01 per diluted share impact from the results of discontinued operations.  A reconciliation of net income attributable to common shareholders to FFO is included in the financial tables accompanying this press release.

“We are pleased to report that our first quarter operating results reflected better than anticipated performance from our apartment communities,” said Richard J. Campo, Camden’s Chairman and Chief Executive Officer.  “With market conditions continuing to improve across our portfolio, we expect our full-year 2010 FFO per share to be in the upper half of our guidance range.”

Same Property Results
For the 47,359 apartment homes included in consolidated same property results, first quarter 2010 same property net operating income (“NOI”) declined 9.1% compared to the first quarter of 2009, with revenues declining 4.8% and expenses increasing 2.0%.  On a sequential basis, first quarter 2010 same property NOI declined 6.1% compared to the fourth quarter of 2009, with revenues declining 0.9% and expenses increasing 7.6% compared to the prior quarter.  Same property physical occupancy levels for the portfolio averaged 93.1% during the first quarter of 2010, compared to 93.0% in the fourth quarter of 2009 and 93.6% in the first quarter of 2009.

The Company defines same property communities as communities owned and stabilized as of January 1, 2009, excluding properties held for sale and communities under redevelopment.  A reconciliation of net income attributable to common shareholders to net operating income and same property net operating income is included in the financial tables accompanying this press release.

Development Activity
Camden had one wholly-owned development community in lease-up during the first quarter:  Camden Dulles Station in Oak Hill, VA, a $72.3 million project that is currently 95% leased.

During the quarter, construction was completed on two joint venture communities:  Camden Travis Street, a $30.5 million project that is currently 47% leased; and Belle Meade, a $37.0 million project that is currently 54% leased.  Lease-ups continued during the quarter at two additional joint venture communities which completed construction during 2009:  Camden Amber Oaks in Austin, TX, a $35.3 million project that is currently 89% leased; and Braeswood Place in Houston, TX, a $50.3 million project that is currently 70% leased.

Equity Issuance
During the first quarter, Camden issued 403,500 common shares through its at-the-market (“ATM”) share offering program at an average price of $43.64 per share, for total net consideration of approximately $17.2 million.  Subsequent to quarter-end, the Company issued an additional 825,124 common shares through its ATM program at an average price of $45.27 per share, for total net consideration of approximately $36.8 million.
 
 
 
 
 
 
Earnings Guidance
Camden maintained its earnings guidance for 2010 based on its current and expected views of the apartment market and general economic conditions.  Full-year 2010 FFO is expected to be $2.35 to $2.65 per diluted share, and full-year 2010 EPS is expected to be $(0.24) to $0.06 per diluted share.  Second quarter 2010 earnings guidance is $0.61 to $0.65 per diluted share for FFO and $(0.03) to $0.01 per diluted share for EPS.  Guidance for EPS excludes potential future gains on the sale of properties.  Camden intends to update its earnings guidance to the market on a quarterly basis.

The Company’s 2010 earnings guidance is based on projections of same property revenue declines between 2.25% and 4.25%, expense growth between 2.0% and 3.5%, and NOI declines between 5.5% and 8.5%.  Additional information on the Company’s 2010 financial outlook and a reconciliation of expected net income attributable to common shareholders to expected FFO are included in the financial tables accompanying this press release.

Conference Call
The Company will hold a conference call on Friday, May 7, 2010 at 11:00 a.m. Central Time to review its first quarter 2010 results and discuss its outlook for future performance.  To participate in the call, please dial (866) 843-0890 (Domestic) or (412) 317-9250 (International) by 10:50 a.m. Central Time and enter passcode: 4447563, or join the live webcast of the conference call by accessing the Investor Relations section of the Company’s website at 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, an S&P 400 Company, is a real estate company engaged in the ownership, development, acquisition, management and disposition of multifamily apartment communities.  Camden owns interests in and operates 185 properties containing 63,658 apartment homes across the United States.  Camden was recently named by FORTUNE® Magazine for the third consecutive year as one of the “100 Best Companies to Work For” in America, placing 10th on the list.

For additional information, please contact Camden’s Investor Relations Department at (800) 922-6336 or (713) 354-2787 or access our website at camdenliving.com.
 
 
 
 
 
 
 
CAMDEN
  OPERATING RESULTS
  (In thousands, except per share and property data amounts)
             
(Unaudited)
  
Three Months Ended
   
March 31,
OPERATING DATA
  
2010
  
2009
Property revenues
            
Rental revenues
     $131,161       $136,500  
Other property revenues
     21,045       20,532  
   Total property revenues
     152,206       157,032  
                 
Property expenses
                
Property operating and maintenance
     44,613       42,304  
Real estate taxes
     18,445       18,601  
   Total property expenses
     63,058       60,905  
                 
Non-property income
                
Fee and asset management income
     1,838       2,031  
Interest and other income
     3,045       735  
Income (loss) on deferred compensation plans
     3,482       (4,152 )
   Total non-property income (loss)
     8,365       (1,386 )
                 
Other expenses
                
Property management
     5,183       4,929  
Fee and asset management
     1,194       1,135  
General and administrative
     7,404       8,232  
Interest
     31,555       32,245  
Depreciation and amortization
     43,813       43,980  
Amortization of deferred financing costs
     726       817  
Expense (benefit) on deferred compensation plans
     3,482       (4,152 )
   Total other expenses
     93,357       87,186  
                 
                 
Gain on early retirement of debt
     -       166  
Equity in income (loss) of joint ventures
     (105 )     408  
Income from continuing operations before income taxes
     4,051       8,129  
   Income tax expense - current
     (270 )     (299 )
Income from continuing operations
     3,781       7,830  
   Income from discontinued operations
     -       675  
Net income
     3,781       8,505  
   Less (income) loss allocated to noncontrolling interests from continuing operations
     254       (521 )
   Less income allocated to perpetual preferred units
     (1,750 )     (1,750 )
Net income attributable to common shareholders
     $2,285       $6,234  
                 
                 
CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME
  
Net income
     $3,781       $8,505  
Other comprehensive income (loss)
                
   Unrealized loss on cash flow hedging activities
     (6,817 )     (2,936 )
   Reclassification of net losses on cash flow hedging activities
     5,879       5,276  
Comprehensive income
     2,843       10,845  
   Less (income) loss allocated to noncontrolling interests from continuing operations
     254       (521 )
   Less income allocated to perpetual preferred units
     (1,750 )     (1,750 )
Comprehensive income attributable to common shareholders
     $1,347       8,574  
                 
                 
PER SHARE DATA
                
  Net income attributable to common shareholders - basic
     $0.03       $0.11  
  Net income attributable to common shareholders - diluted
     0.03       0.11  
  Income from continuing operations attributable to common shareholders - basic
     0.03       0.10  
  Income from continuing operations attributable to common shareholders - diluted
     0.03       0.10  
                 
Weighted average number of common and
                
  common equivalent shares outstanding:
                
     Basic
     66,475       55,552  
     Diluted
     68,169       56,047  
 
 
 
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
  
2010
  
2009
             
  Net income attributable to common shareholders
     $2,285       $6,234  
  Real estate depreciation from continuing operations
     42,639       43,010  
  Adjustments for unconsolidated joint ventures
     2,163       1,916  
  Income (loss) allocated to noncontrolling interests
     (105 )     421  
     Funds from operations - diluted
     $46,982       $51,581  
                 
PER SHARE DATA
                
  Funds from operations - diluted
     $0.68       $0.88  
  Cash distributions
     0.45       0.70  
                 
Weighted average number of common and
                
  common equivalent shares outstanding:
                
     FFO - diluted
     69,295       58,471  
                 
PROPERTY DATA
                
  Total operating properties (end of period) (a)
     185       182  
  Total operating apartment homes in operating properties (end of period) (a)
     63,658       63,269  
  Total operating apartment homes (weighted average)
     50,578       50,688  
  Total operating apartment homes - excluding discontinued operations (weighted average)
     50,578       50,017  
 
 
(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,
    
Jun 30,
    
Mar 31,
  
   
2010
    
2009
    
2009
    
2009
    
2009
  
ASSETS
                              
Real estate assets, at cost
                              
Land
     $748,604       $747,921       $746,825       $746,936       $746,935  
Buildings and improvements
     4,527,523       4,512,124       4,484,335       4,473,906       4,466,296  
      5,276,127       5,260,045       5,231,160       5,220,842       5,213,231  
Accumulated depreciation
     (1,191,604 )     (1,149,056 )     (1,107,227 )     (1,065,861 )     (1,023,466 )
Net operating real estate assets
     4,084,523       4,110,989       4,123,933       4,154,981       4,189,765  
Properties under development and land
     196,371       201,581       279,620       268,655       258,239  
Investments in joint ventures
     42,994       43,542       43,236       22,334       15,158  
Properties held for sale, including land
     -       -       6,622       6,732       20,696  
Total real estate assets
     4,323,888       4,356,112       4,453,411       4,452,702       4,483,858  
Accounts receivable - affiliates
     32,657       36,112       35,971       35,909       36,105  
Notes receivable - affiliates
     46,118       45,847       54,462       54,033       58,481  
Other assets, net (a)
     92,983       102,114       104,669       92,421       84,905  
Cash and cash equivalents
     28,553       64,156       81,683       157,665       7,256  
Restricted cash
     3,680       3,658       3,901       5,190       4,437  
Total assets
     $4,527,879       $4,607,999       $4,734,097       $4,797,920       $4,675,042  
                                         
                                         
                                         
LIABILITIES AND SHAREHOLDERS' EQUITY
                                        
Liabilities
                                        
Notes payable
                                        
Unsecured
     $1,590,473       $1,645,926       $1,646,106       $1,728,150       $2,151,492  
Secured
     980,188       979,273       976,051       969,668       680,631  
Accounts payable and accrued expenses
     69,858       74,420       78,466       65,012       73,250  
Accrued real estate taxes
     17,005       23,241       42,386       30,154       19,113  
Other liabilities (b)
     138,136       145,176       145,464       132,763       137,397  
Distributions payable
     33,403       33,025       33,028       33,050       43,136  
Total liabilities
     2,829,063       2,901,061       2,921,501       2,958,797       3,105,019  
                                         
Commitments and contingencies
                                        
                                         
Perpetual preferred units
     97,925       97,925       97,925       97,925       97,925  
                                         
Shareholders' equity
                                        
Common shares of beneficial interest
     778       770       770       769       666  
Additional paid-in capital
     2,548,722       2,525,656       2,522,525       2,517,788       2,242,940  
Distributions in excess of net income attributable to common shareholders
     (520,798 )     (492,571 )     (383,265 )     (357,168 )     (345,481 )
Notes receivable secured by common shares
     (101 )     (101 )     (101 )     (287 )     (291 )
Treasury shares, at cost
     (461,517 )     (462,188 )     (462,188 )     (462,751 )     (462,751 )
Accumulated other comprehensive loss (c)
     (42,093 )     (41,155 )     (44,921 )     (41,886 )     (48,716 )
Total common shareholders' equity
     1,524,991       1,530,411       1,632,820       1,656,465       1,386,367  
Noncontrolling interest
     75,900       78,602       81,851       84,733       85,731  
Total shareholders' equity
     1,600,891       1,609,013       1,714,671       1,741,198       1,472,098  
Total liabilities and shareholders' equity
     $4,527,879       $4,607,999       $4,734,097       $4,797,920       $4,675,042  
                                         
                                         
                                         
(a) includes:
                                        
net deferred charges of:
     $10,704       $11,113       $11,617       $12,108       $10,061  
                                         
(b) includes:
                                        
deferred revenues of:
     $2,467       $2,664       $2,938       $3,183       $2,402  
distributions in excess of investments in joint ventures of:
     $32,195       $31,410       $30,507       $30,287       $31,318  
fair value adjustment of derivative instruments:
     $42,119       $41,083       $44,730       $41,797       $48,693  
                                         
(c) Represents the fair value adjustment of derivative instruments and gain on post retirement obligations.
          
 
 
 
 
 
 
 
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 attributable to common shares 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 attributable to common shareholders to FFO is provided below:        
 
                    
                       
             
Three Months Ended
  
             
March 31,
  
             
2010
2009
  
  Net income attributable to common shareholders
        
$2,285
 
$6,234
    
  Real estate depreciation from continuing operations
        
42,639
 
43,010
    
  Adjustments for unconsolidated joint ventures
        
2,163
 
1,916
    
  Income (loss) allocated to noncontrolling interests
        
(105)
  
421
    
     Funds from operations - diluted
        
$46,982
  
$51,581
    
                       
Weighted average number of common and
                  
     common equivalent shares outstanding:
                  
EPS diluted
        
68,169
  
56,047
    
FFO diluted
        
69,295
  
58,471
    
                       
 Net income attributable to common shareholders - diluted
      
$0.03
  
$0.11
    
 FFO per common share - diluted
        
$0.68
  
$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 attributable to common shareholders (EPS).  A reconciliation of the ranges provided for expected net income attributable to common shareholders per diluted share to expected FFO per diluted share is provided below:
        
                       
     
   2Q10 Range
    
   2010 Range          
    
     
Low
High
    
Low
  
High
    
                       
Expected net income attributable to common shareholders per share - diluted
($0.03)
$0.01
    
($0.24)
  
$0.06
    
Expected real estate depreciation
0.60
0.60
    
2.43
  
2.43
    
Expected adjustments for unconsolidated joint ventures
0.03
0.03
    
0.13
  
0.13
    
Expected income allocated to noncontrolling interests
0.01
0.01
    
0.03
  
0.03
    
Expected FFO per share - diluted
0.61
0.65
    
$2.35
  
$2.65
    
 
 
 
 
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. 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
   
March 31,
   
2010
    
2009
  
Net income attributable to common shareholders
     $2,285       $6,234  
Less: Fee and asset management income
     (1,838 )     (2,031 )
Less: Interest and other income
     (3,045 )     (735 )
Less: (Income) loss on deferred compensation plans
     (3,482 )     4,152  
Plus: Property management expense
     5,183       4,929  
Plus: Fee and asset management expense
     1,194       1,135  
Plus: General and administrative expense
     7,404       8,232  
Plus: Interest expense
     31,555       32,245  
Plus: Depreciation and amortization
     43,813       43,980  
Plus: Amortization of deferred financing costs
     726       817  
Plus: Expense (benefit) on deferred compensation plans
     3,482       (4,152 )
Less: (Gain) on early retirement of debt
     -       (166 )
Less: Equity in (income) loss of joint ventures
     105       (408 )
Plus: Income allocated to perpetual preferred units
     1,750       1,750  
Plus: Income (loss) allocated to noncontrolling interests
     (254 )     521  
Plus: Income tax expense - current
     270       299  
Less: Income from discontinued operations
     -       (675 )
   Net Operating Income (NOI)
     $89,148       $96,127  
                 
"Same Property" Communities
     $82,585       $90,813  
Non-"Same Property" Communities
     5,201       4,116  
Development and Lease-Up Communities
     799       424  
Redevelopment Communities
     570       500  
Dispositions / Other
     (7 )     274  
  Net Operating Income (NOI)
     $89,148       $96,127  
                 
                 
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) loss of joint ventures, (gain) loss on early retirement of debt, and income (loss) allocated to noncontrolling interests. The Company considers 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 EBITDA is provided below:
                
                 
   
Three Months Ended
   
March 31,
      2010     2009
Net income attributable to common shareholders
     $2,285       $6,234  
Plus: Interest expense
     31,555       32,245  
Plus: Amortization of deferred financing costs
     726       817  
Plus: Depreciation and amortization
     43,813       43,980  
Plus: Income allocated to perpetual preferred units
     1,750       1,750  
Plus: Income (loss) allocated to noncontrolling interests
     (254 )     521  
Plus: Income tax expense - current
     270       299  
Less: (Gain) on early retirement of debt
     -       (166 )
Less: Equity in (income) loss of joint ventures
     105       (408 )
 EBITDA
     $80,250       $85,272