EX-99.1 2 a50056164_ex991.htm EXHIBIT 99.1 a50056164_ex991.htm
EXHIBIT 99.1
 
 
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CAMDEN PROPERTY TRUST ANNOUNCES
THIRD QUARTER 2011 OPERATING RESULTS;
FFO PER DILUTED SHARE INCREASES 18%


Houston, TEXAS (November 3, 2011) – Camden Property Trust (NYSE: CPT) today announced operating results for the three and nine months ended September 30, 2011.

Funds From Operations (“FFO”)
FFO for the third quarter of 2011 totaled $0.77 per diluted share or $58.8 million, as compared to $0.65 per diluted share or $46.7 million for the same period in 2010, an increase of 18% per diluted share.

FFO for the nine months ended September 30, 2011 totaled $1.89 per diluted share or $143.3 million, as compared to $1.98 per diluted share or $140.4 million for the same period in 2010.  FFO for the nine months ended September 30, 2011 included:  a $0.40 per diluted share impact related to a $29.8 million loss on discontinuation of a hedging relationship of an interest rate swap and $0.5 million write-off of unamortized loan costs related to the payoff of a term loan; a $4.7 million or $0.06 per diluted share gain on sale of undeveloped land; a net $3.3 million or $0.04 per diluted share impact related to the sale of an available-for-sale investment; and a $2.1 million or $0.03 per diluted share impact for General & Administrative (“G&A”) costs related to a one-time bonus awarded to all non-executive employees.  FFO for the nine months ended September 30, 2010 included a $2.7 million or $0.04 per diluted share impact for income relating to the expiration of an indemnification provision related to one of the Company’s operating joint ventures.
 
 
Net Income Attributable to Common Shareholders (“EPS”)
The Company reported EPS of $11.8 million or $0.16 per diluted share for the third quarter of 2011, as compared to $1.7 million or $0.02 per diluted share for the same period in 2010.

For the nine months ended September 30, 2011, Camden reported EPS of $2.5 million or $0.03 per diluted share, as compared to $6.1 million or $0.09 per diluted share for the same period in 2010.  EPS for the nine months ended September 30, 2011 included: a $0.41 per diluted share impact related to a $29.8 million loss on discontinuation of a hedging relationship of an interest rate swap and $0.5 million write-off of unamortized loan costs related to the payoff of a term loan; a $4.7 million or $0.06 per diluted share gain on sale of undeveloped land; a net $3.3 million or $0.05 per diluted share impact related to gain on sale of an available-for-sale investment; a $2.1 million or $0.03 per diluted share impact for G&A costs related to a one-time bonus awarded to all non-executive employees; and a $1.1 million or $0.02 per diluted share impact from gain on sale of three joint venture interests.  EPS for the nine months ended September 30, 2010 included a $2.7 million or $0.04 per diluted share impact for income relating to the expiration of an indemnification provision related to one of the Company’s operating joint ventures.

A reconciliation of net income attributable to common shareholders to FFO is included in the financial tables accompanying this press release.

Same Property Results
For the 47,309 apartment homes included in consolidated same property results, third quarter 2011 same property NOI increased 7.4% compared to the third quarter of 2010, with revenues increasing 6.3% and expenses increasing 4.6%.  On a sequential basis, third quarter 2011 same property NOI increased 0.9% compared to the second quarter of 2011, with revenues increasing 2.1% and expenses increasing 3.9% compared to the prior quarter.  On a year-to-date basis, 2011 same property NOI increased 6.8%, with revenues increasing 5.1% and expenses increasing 2.6% compared to the same period in 2010. Same property physical occupancy levels for the portfolio averaged 95.0% during the third quarter of 2011, compared to 94.3% in the third quarter of 2010 and 94.8% in the second quarter of 2011.
 
 
 
 

The Company defines same property communities as communities owned and stabilized as of January 1, 2010, excluding properties held for sale and communities under major 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.

Acquisition Activity
During the quarter, the Company acquired 30 acres of land in Atlanta, GA for approximately $40 million, which it intends to utilize for future development.

Camden also completed the acquisition of a 240-home apartment community in San Antonio, TX during the quarter for approximately $15 million through one of its discretionary investment funds (“Funds”), in which it owns a 20% interest.  Subsequent to quarter-end, the Company acquired five additional communities with 1,488 apartment homes located in Houston, TX for approximately $136 million through its Funds.

Development Activity
Lease-up was completed during the third quarter at Camden Ivy Hall, a $17 million joint venture community which is currently 94% occupied.  Lease-ups began during the quarter at two wholly-owned communities:  Camden LaVina in Orlando, FL, which is currently 35% leased; and Camden Summerfield II in Landover, MD, which is currently 19% leased.

Construction continued during the quarter on six wholly-owned development communities:  Camden LaVina in Orlando, FL, a $60 million project with 420 apartment homes; Camden Summerfield II in Landover, MD, a $30 million project with 187 apartment homes; Camden Royal Oaks II in Houston, TX, a $14 million project with 104 apartment homes; Camden Montague in Tampa, FL, a $23 million project with 192 apartment homes; Camden Westchase Park in Tampa, FL, a $52 million project with 348 apartment homes; and Camden Town Square in Orlando, FL, a $66 million project with 438 apartment homes.  Construction also continued during the quarter on two joint venture communities: Camden South Capitol in Washington, DC, an $88 million project with 276 apartment homes, and Camden Amber Oaks II in Austin, TX, a $25 million project with 244 apartment homes.

Subsequent to quarter-end, the Company began construction on two additional wholly-owned development communities:  Camden City Centre II in Houston, TX, a $36 million project with 268 apartment homes, and Camden NOMA in Washington DC, a $110 million project with 320 apartment homes.

Equity Issuance
During the third quarter, Camden issued 506,200 common shares through its at-the-market (“ATM”) share offering programs at an average price of $65.76 per share, for total net consideration of approximately $32.7 million.  Year-to-date Camden has issued 1,127,898 common shares through its ATM programs at an average price of $63.13 per share, for total net consideration of approximately $69.9 million.

Earnings Guidance
Camden updated its earnings guidance for 2011 based on its current and expected views of the apartment market and general economic conditions.  Full-year 2011 FFO is expected to be $2.70 to $2.74 per diluted share, and full-year 2011 EPS is expected to be $0.24 to $0.28 per diluted share.  Fourth quarter 2011 earnings guidance is $0.81 to $0.85 per diluted share for FFO and $0.20 to $0.24 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 2011 earnings guidance is based on projections of same property revenue growth between 5.2% and 5.6%, expense growth between 2.75% and 3.25%, and NOI growth between 6.75% and 7.25%.  Additional information on the Company’s 2011 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.

Camden expects to issue earnings guidance for 2012 in conjunction with its fourth quarter 2011 earnings release on February 2, 2012.

Conference Call
The Company will hold a conference call on Friday, November 4, 2011 at 11:00 a.m. Central Time to review its third quarter 2011 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: 9252989, 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 202 properties containing 68,979 apartment homes across the United States.  Upon completion of 10 properties under development, the Company's portfolio will increase to 71,776 apartment homes in 212 properties.  Camden was recently named by FORTUNE® Magazine for the fourth consecutive year as one of the “100 Best Companies to Work For” in America, placing 7th 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 www.camdenliving.com.
 
 
 
 
 
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
  
2011
    
2010
    
2011
    
2010
  
Property revenues
                        
Rental revenues
     $144,211       $131,911       $424,210       $390,376  
Other property revenues
     24,723       22,363       70,977       64,641  
   Total property revenues
     168,934       154,274       495,187       455,017  
                                 
Property expenses
                                
Property operating and maintenance
     50,715       46,999       144,666       134,655  
Real estate taxes
     17,329       16,652       52,932       52,767  
   Total property expenses
     68,044       63,651       197,598       187,422  
                                 
Non-property income (loss)
                                
Fee and asset management
     2,646       2,145       6,955       6,028  
Interest and other income (loss)
     (108 )     451       4,749       3,988  
Income (loss) on deferred compensation plans
     (6,096 )     6,918       1,233       6,818  
   Total non-property income (loss)
     (3,558 )     9,514       12,937       16,834  
                                 
Other expenses
                                
Property management
     5,050       4,789       15,478       14,994  
Fee and asset management
     1,330       1,155       4,220       3,611  
General and administrative
     8,572       7,568       26,392       22,339  
Interest
     27,354       31,781       85,472       95,078  
Depreciation and amortization
     44,558       43,034       137,111       128,012  
Amortization of deferred financing costs
     1,344       1,185       4,761       2,624  
Expense (benefit) on deferred compensation plans
     (6,096 )     6,918       1,233       6,818  
   Total other expenses
     82,112       96,430       274,667       273,476  
                                 
                                 
Loss on discontinuation of hedging relationship
     -       -       (29,791 )     -  
Gain on sale of properties, including land
     -       -       4,748       236  
Gain on sale of unconsolidated joint venture interests
     -       -       1,136       -  
Equity in loss of joint ventures
     (556 )     (244 )     (166 )     (785 )
Income from continuing operations before income taxes
     14,664       3,463       11,786       10,404  
Income tax expense - current
     (313 )     (712 )     (1,889 )     (1,286 )
Income from continuing operations
     14,351       2,751       9,897       9,118  
Income from discontinued operations
     -       1,081       -       2,743  
Net income
     14,351       3,832       9,897       11,861  
Less income allocated to noncontrolling interests from continuing operations
     (761 )     (432 )     (2,118 )     (542 )
Less income allocated to perpetual preferred units
     (1,750 )     (1,750 )     (5,250 )     (5,250 )
Net income attributable to common shareholders
     $11,840       $1,650       $2,529       $6,069  
                                 
                                 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
  
Net income
     $14,351       $3,832       $9,897       $11,861  
Other comprehensive income
                                
Unrealized loss on cash flow hedging activities
     -       (5,323 )     (2,692 )     (19,549 )
Reclassification of net losses on cash flow hedging activities
     108       5,825       39,660       17,488  
Unrealized gain on available-for-sale securities, net of tax
     -       1,914       -       1,914  
Reclassification of gain on available-for-sale investment to earnings, net of tax
     -       -       (3,309 )     -  
Comprehensive income
     14,459       6,248       43,556       11,714  
Less income allocated to noncontrolling interests from continuing operations
     (761 )     (432 )     (2,118 )     (542 )
Less income allocated to perpetual preferred units
     (1,750 )     (1,750 )     (5,250 )     (5,250 )
Comprehensive income attributable to common shareholders
     $11,948       $4,066       $36,188       $5,922  
                                 
                                 
PER SHARE DATA
                                
  Net income attributable to common shareholders - basic
     $0.16       $0.02       $0.03       $0.09  
  Net income attributable to common shareholders - diluted
     0.16       0.02       0.03       0.09  
  Income from continuing operations attributable to common shareholders - basic
     0.16       0.01       0.03       0.05  
  Income from continuing operations attributable to common shareholders - diluted
     0.16       0.01       0.03       0.05  
                                 
Weighted average number of common and
                                
  common equivalent shares outstanding:
                                
     Basic
     73,242       69,100       72,502       67,898  
     Diluted
     74,274       69,441       73,217       68,169  
                                 
                                 
                                 
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
    
Nine Months Ended
  
   
September 30,
    
September 30,
  
FUNDS FROM OPERATIONS
  
2011
    
2010
    
2011
    
2010
  
                         
  Net income attributable to common shareholders (a)
     $11,840       $1,650       $2,529       $6,069  
  Real estate depreciation from continuing operations
     43,286       41,806       133,342       124,399  
  Real estate depreciation from discontinued operations
     -       651       -       2,276  
  Adjustments for unconsolidated joint ventures
     3,223       2,292       7,042       6,753  
  (Gain) on sale of unconsolidated joint venture interests
     -       -       (1,136 )     -  
  Income allocated to noncontrolling interests
     458       281       1,494       864  
     Funds from operations - diluted
     $58,807       $46,680       $143,271       $140,361  
                                 
PER SHARE DATA
                                
  Funds from operations - diluted
     $0.77       $0.65       $1.89       $1.98  
  Cash distributions
     0.49       0.45       1.47       1.35  
                                 
Weighted average number of common and
                                
  common equivalent shares outstanding:
                                
     FFO - diluted
     76,494       72,025       75,685       70,779  
                                 
PROPERTY DATA
                                
  Total operating properties (end of period) (b)
     197       186       197       186  
  Total operating apartment homes in operating properties (end of period) (b)
     67,491       63,964       67,491       63,964  
  Total operating apartment homes (weighted average)
     50,921       50,950       50,895       50,736  
  Total operating apartment homes - excluding discontinued operations (weighted average)
     50,921       49,884       50,895       49,670  
 
(a) Includes a $29.8 million charge related to a loss on the discontinuation of a hedging relationship for the nine months ended September 30,2011.
(b) Includes joint ventures and properties held for sale.
 
Note: Please refer to the following pages for definitions and reconciliations of all non-GAAP financial measures presented in this document.
 
 
 
 
 
CAMDEN
                     BALANCE SHEETS
                      (In thousands)
                               
                               
(Unaudited)
  
Sep 30,
    
Jun 30,
    
Mar 31,
    
Dec 31,
    
Sep 30,
  
   
2011
    
2011
    
2011
    
2010
    
2010
  
ASSETS
                              
Real estate assets, at cost
                              
Land
     $766,302       $760,397       $760,397       $760,397       $763,559  
Buildings and improvements
     4,758,397       4,711,552       4,690,741       4,680,361       4,613,036  
      5,524,699       5,471,949       5,451,138       5,440,758       5,376,595  
Accumulated depreciation
     (1,421,867 )     (1,378,630 )     (1,335,831 )     (1,292,924 )     (1,263,173 )
Net operating real estate assets
     4,102,832       4,093,319       4,115,307       4,147,834       4,113,422  
Properties under development, including land
     274,201       237,549       220,641       206,919       198,377  
Investments in joint ventures
     37,033       39,398       21,196       27,632       33,226  
Properties held for sale, including land
     -       -       -       -       9,737  
Total real estate assets
     4,414,066       4,370,266       4,357,144       4,382,385       4,354,762  
Accounts receivable - affiliates
     31,395       30,401       29,973       31,895       32,269  
Notes receivable - affiliates
     -       -       -       3,194       17,509  
Other assets, net (a)
     87,657       90,346       92,051       106,175       105,950  
Cash and cash equivalents
     56,099       63,148       98,771       170,575       91,071  
Restricted cash
     5,357       4,898       5,354       5,513       5,174  
Total assets
     $4,594,574       $4,559,059       $4,583,293       $4,699,737       $4,606,735  
                                         
                                         
                                         
LIABILITIES AND EQUITY
                                        
Liabilities
                                        
Notes payable
                                        
Unsecured
     $1,380,560       $1,380,368       $1,419,681       $1,507,757       $1,507,858  
Secured
     1,052,544       1,053,699       1,054,839       1,055,997       1,034,354  
Accounts payable and accrued expenses
     97,613       78,460       81,972       81,556       82,598  
Accrued real estate taxes
     37,721       27,424       16,585       22,338       40,340  
Distributions payable
     39,319       38,966       38,662       35,295       34,548  
Other liabilities (b)
     111,043       123,829       134,608       141,496       144,146  
Total liabilities
     2,718,800       2,702,746       2,746,347       2,844,439       2,843,844  
                                         
Commitments and contingencies
                                        
                                         
Perpetual preferred units
     97,925       97,925       97,925       97,925       97,925  
                                         
Equity
                                        
Common shares of beneficial interest
     839       834       827       824       804  
Additional paid-in capital
     2,861,139       2,823,690       2,783,621       2,775,625       2,673,606  
Distributions in excess of net income attributable to common shareholders
     (700,897 )     (676,367 )     (623,740 )     (595,317 )     (580,046 )
Treasury shares, at cost
     (452,244 )     (459,134 )     (460,467 )     (461,255 )     (461,255 )
Accumulated other comprehensive income (loss) (c)
     201       93       (31,504 )     (33,458 )     (41,302 )
Total common equity
     1,709,038       1,689,116       1,668,737       1,686,419       1,591,807  
Noncontrolling interest
     68,811       69,272       70,284       70,954       73,159  
Total equity
     1,777,849       1,758,388       1,739,021       1,757,373       1,664,966  
Total liabilities and equity
     $4,594,574       $4,559,059       $4,583,293       $4,699,737       $4,606,735  
                                         
                                         
                                         
(a) Includes:
                                        
net deferred charges of:
     $16,868       $14,484       $12,677       $13,336       $14,892  
                                         
(b) Includes:
                                        
deferred revenues of:
     $2,213       $2,181       $2,254       $2,332       $2,347  
distributions in excess of investments in joint ventures of:
     $31,799       $31,040       $33,442       $32,288       $34,045  
fair value adjustment of derivative instruments:
     $22,192       $27,977       $31,655       $36,898       $43,267  
                                         
(c) Represents the fair value adjustment of derivative instruments, unrealized gain on post retirement obligations and unrealized gain on available-for-sale securities, net of tax, if any.
  
 
 
 
 
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
    
Nine Months Ended
  
   
September 30,
    
September 30,
  
   
2011
    
2010
    
2011
    
2010
  
  Net income attributable to common shareholders (a)
     $11,840       $1,650       $2,529       $6,069  
  Real estate depreciation from continuing operations
     43,286       41,806       133,342       124,399  
  Real estate depreciation from discontinued operations
     -       651       -       2,276  
  Adjustments for unconsolidated joint ventures
     3,223       2,292       7,042       6,753  
  (Gain) on sale of unconsolidated joint venture interests
     -       -       (1,136 )     -  
  Income allocated to noncontrolling interests
     458       281       1,494       864  
     Funds from operations - diluted
     $58,807       $46,680       $143,271       $140,361  
                                 
Weighted average number of common and
                                
common equivalent shares outstanding:
                                
EPS diluted
     74,274       69,441       73,217       68,169  
FFO diluted
     76,494       72,025       75,685       70,779  
                                 
 Net income attributable to common shareholders - diluted
     $0.16       $0.02       $0.03       $0.09  
 FFO per common share - diluted
     $0.77       $0.65       $1.89       $1.98  
                                 
(a) Includes a $29.8 million charge related to a loss on the discontinuation of a hedging relationship for the nine months ended September 30,2011.
                  
 
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:
 
   
4Q11 Range
    
2011 Range
  
   
Low
    
High
    
Low
    
High
  
                         
Expected net income attributable to common shareholders per share - diluted
     $0.20       $0.24       $0.24       $0.28  
Expected difference between fully diluted EPS and FFO shares
     (0.02 )     (0.02 )     (0.07 )     (0.07 )
Expected real estate depreciation
     0.58       0.58       2.38       2.38  
Expected adjustments for unconsolidated joint ventures
     0.04       0.04       0.14       0.14  
Recognized (gain) on sale of unconsolidated joint venture interests
     0.00       0.00       (0.02 )     (0.02 )
Expected income allocated to noncontrolling interests
     0.01       0.01       0.03       0.03  
Expected FFO per share - diluted
     $0.81       $0.85       $2.70       $2.74  
 
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
    
Nine Months Ended
  
   
September 30,
    
September 30,
  
   
2011
    
2010
    
2011
    
2010
  
Net income attributable to common shareholders
     $11,840       $1,650       $2,529       $6,069  
Less: Fee and asset management income
     (2,646 )     (2,145 )     (6,955 )     (6,028 )
Less: Interest and other (income) loss
     108       (451 )     (4,749 )     (3,988 )
Less: (Income) loss on deferred compensation plans
     6,096       (6,918 )     (1,233 )     (6,818 )
Plus: Property management expense
     5,050       4,789       15,478       14,994  
Plus: Fee and asset management expense
     1,330       1,155       4,220       3,611  
Plus: General and administrative expense
     8,572       7,568       26,392       22,339  
Plus: Interest expense
     27,354       31,781       85,472       95,078  
Plus: Depreciation and amortization
     44,558       43,034       137,111       128,012  
Plus: Amortization of deferred financing costs
     1,344       1,185       4,761       2,624  
Plus: Expense (benefit) on deferred compensation plans
     (6,096 )     6,918       1,233       6,818  
Less: Gain on sale of properties, including land
     -       -       (4,748 )     (236 )
Less: Gain on sale of unconsolidated joint venture interests
     -       -       (1,136 )     -  
Less: Equity in (income) loss of joint ventures
     556       244       166       785  
Plus: Loss on discontinuation of hedging relationship
     -       -       29,791       -  
Plus: Income allocated to perpetual preferred units
     1,750       1,750       5,250       5,250  
Plus: Income allocated to noncontrolling interests
     761       432       2,118       542  
Plus: Income tax expense - current
     313       712       1,889       1,286  
Less: Income from discontinued operations
     -       (1,081 )     -       (2,743 )
   Net Operating Income (NOI)
     $100,890       $90,623       $297,589       $267,595  
                                 
"Same Property" Communities
     $92,154       $85,796       $271,903       $254,586  
Non-"Same Property" Communities
     8,298       5,066       24,964       13,356  
Development and Lease-Up Communities
     83       -       83       -  
Other
     355       (239 )     639       (347 )
  Net Operating Income (NOI)
     $100,890       $90,623       $297,589       $267,595  
 
 
 
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 sale of unconsolidated joint venture interests, 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
    
Nine Months Ended
  
   
September 30,
    
September 30,
  
   
2011
    
2010
    
2011
    
2010
  
Net income attributable to common shareholders
     $11,840       $1,650       $2,529       $6,069  
Plus: Interest expense
     27,354       31,781       85,472       95,078  
Plus: Amortization of deferred financing costs
     1,344       1,185       4,761       2,624  
Plus: Depreciation and amortization
     44,558       43,034       137,111       128,012  
Plus: Income allocated to perpetual preferred units
     1,750       1,750       5,250       5,250  
Plus: Income allocated to noncontrolling interests
     761       432       2,118       542  
Plus: Income tax expense - current
     313       712       1,889       1,286  
Plus: Real estate depreciation from discontinued operations
     -       651       -       2,276  
Less: Gain on sale of properties, including land
     -       -       (4,748 )     (236 )
Less: Gain on sale of unconsolidated joint venture interests
     -       -       (1,136 )     -  
Less: Equity in (income) loss of joint ventures
     556       244       166       785  
Plus: Loss on discontinuation of hedging relationship
     -       -       29,791       -  
 EBITDA
     $88,476       $81,439       $263,203       $241,686