OPERATING RESULTS | |||||||
---|---|---|---|---|---|---|---|
(In thousands, except per share and property data amounts) | |||||||
(Unaudited) | Three Months Ended March 31, | ||||
---|---|---|---|---|---|
2003 | 2002 | ||||
OPERATING DATA | |||||
Revenues | |||||
Rental income | $ 90,008 | $ 90,087 | |||
Other property income | 7,410 | 7,224 | |||
Total property income | 97,418 | 97,311 | |||
Development and construction fees | 1,336 | 1,072 | |||
Management fees | 434 | 464 | |||
Other income | 1,612 | 2,850 | |||
Total revenues | 100,800 | 101,697 | |||
Expenses | |||||
Property operating and maintenance | 28,082 | 24,745 | |||
Real estate taxes | 11,164 | 10,335 | |||
Property management | 2,537 | 2,395 | |||
Fee and asset mangement | 1,563 | 702 | |||
General and administrative | 3,611 | 3,085 | |||
Other expenses | 1,077 | 1,178 | |||
Interest | 18,356 | 17,104 | |||
Depreciation and amortization | 26,555 | 25,519 | |||
Total expenses | 92,945 | 85,063 | |||
Income from continuing operations before gain on sale of properties, | 7,855 | 16,634 | |||
equity in income of joint ventures and minority interests | |||||
Gain on sale of properties | 1,423 | -- | |||
Equity in income of joint ventures | 2,643 | 225 | |||
Income allocated to minority interests | |||||
Distributions on units convertible into perpetual preferred shares | (3,218 | ) | (3,218 | ) | |
Income allocated to units convertible into common shares | (369 | ) | (454 | ) | |
Income from continuing operations | 8,334 | 13,187 | |||
Income from discontinued operations | -- | 795 | |||
Net income | $ 8,334 | $ 13,982 | |||
FUNDS FROM OPERATIONS | |||||
Net income | $ 8,334 | $ 13,982 | |||
Real estate depreciation from continuing operations | 25,389 | 24,601 | |||
Real estate depreciation from discontinued operations | -- | 538 | |||
Adjustments for unconsolidated joint ventures | 535 | 564 | |||
(Gain) on sale of properties | (1,423 | ) | -- | ||
(Gain) on sale of properties held in joint ventures | (985 | ) | (37 | ) | |
Income allocated to units convertible into common shares | 369 | 454 | |||
Funds from operations - diluted | $ 32,219 | $ 40,102 | |||
PER SHARE DATA | |||||
Income from continuing operations - basic | $ 0.21 | $ 0.32 | |||
Income from continuing operations - diluted | 0.20 | 0.30 | |||
Net income - basic | 0.21 | 0.34 | |||
Net income - diluted | 0.20 | 0.32 | |||
Funds from operations - diluted | 0.75 | 0.90 | |||
Cash distributions | 0.64 | 0.64 | |||
Weighted average number of common and | |||||
common equivalent shares outstanding: | |||||
Basic | 39,164 | 40,826 | |||
Diluted | 42,752 | 44,648 | |||
FFO - diluted | 42,752 | 44,648 | |||
PROPERTY DATA | |||||
Total operating properties (end of period) * | 143 | 144 | |||
Total operating apartment homes in operating properties (end of period) * | 50,790 | 51,045 | |||
Total operating apartment homes (weighted average) | 45,911 | 45,872 | |||
Total operating apartment homes - excluding discontinued operations (weighted average) | 45,911 | 44,548 |
* | Includes joint venture investments. |
6 |
BALANCE SHEETS | |||||||
---|---|---|---|---|---|---|---|
(In thousands) | |||||||
(Unaudited) | Mar 31, | Dec 31, | |||
---|---|---|---|---|---|
2003 | 2002 | ||||
ASSETS | |||||
Real estate assets, at cost | |||||
Land | $ 392,794 | $ 386,246 | |||
Buildings and improvements | 2,392,936 | 2,348,702 | |||
2,785,730 | 2,734,948 | ||||
Accumulated depreciation | (524,165 | ) | (498,776 | ) | |
Net operating real estate assets | 2,261,565 | 2,236,172 | |||
Properties under development, including land | 264,259 | 285,636 | |||
Investment in joint ventures | 10,919 | 15,386 | |||
Total real estate assets | 2,536,743 | 2,537,194 | |||
Accounts receivable - affiliates | 6,444 | 5,843 | |||
Notes receivable | |||||
Affiliates | 1,800 | 1,800 | |||
Other | 18,614 | 18,614 | |||
Other assets, net * | 43,143 | 41,827 | |||
Cash and cash equivalents | 1,945 | 405 | |||
Restricted cash | 4,365 | 4,216 | |||
Total assets | $ 2,613,054 | $ 2,609,899 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
---|---|---|---|---|---|
Liabilities | |||||
Notes payable | |||||
Unsecured | $ 1,208,513 | $ 1,177,347 | |||
Secured | 248,481 | 249,669 | |||
Accounts payable | 36,978 | 36,189 | |||
Accrued real estate taxes | 12,782 | 26,827 | |||
Accrued expenses and other liabilities | 52,347 | 49,144 | |||
Distributions payable | 30,639 | 30,541 | |||
Total liabilities | 1,589,740 | 1,569,717 | |||
Commitments and contingencies | |||||
Minority interests | |||||
Units convertible into perpetual preferred shares | 149,815 | 149,815 | |||
Units convertible into common shares | 49,621 | 50,914 | |||
Total minority interests | 199,436 | 200,729 | |||
Shareholders' equity | |||||
Common shares of beneficial interest | 479 | 479 | |||
Additional paid-in capital | 1,318,649 | 1,314,592 | |||
Distributions in excess of net income | (241,960 | ) | (224,756 | ) | |
Unearned restricted share awards | (16,282 | ) | (13,714 | ) | |
Treasury shares, at cost | (237,008 | ) | (237,148 | ) | |
Total shareholders' equity | 823,878 | 839,453 | |||
Total liabilities and shareholders' equity | $ 2,613,054 | $ 2,609,899 | |||
* | includes net deferred charges of $9,925 and $10,190 at March 31, 2003 and December 31, 2002 respectively. |
7 |
COMPONENTS OF PROPERTY NET OPERATING INCOME | |||||||
---|---|---|---|---|---|---|---|
(In thousands, except property data amounts) | |||||||
(Unaudited) |
Apartment | Three Months Ended March 31, | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Property Revenues | Homes | 2003 | 2002 | Growth | ||||||||||||||
"Same Property" Communities (a) | 42,137 | $87,183 | $90,405 | (3.6 | ) | |||||||||||||
Non-"Same Property" Communities (b) | 2,996 | 7,739 | 4,605 | 68.1 | % | |||||||||||||
Development and Lease-Up Communities (c) | 2,202 | 2,351 | -- | -- | ||||||||||||||
Dispositions / Other (d) | -- | 145 | 2,301 | (93.7 | %) | |||||||||||||
Total Property Revenues | 47,335 | $97,418 | $97,311 | 0.1 | % | |||||||||||||
Property Expenses | ||||||||||||||||||
"Same Property" Communities (a) | 42,137 | $34,396 | $32,548 | 5.7 | % | |||||||||||||
Non-"Same Property" Communities (b) | 2,996 | 3,482 | 1,879 | 85.3 | % | |||||||||||||
Development and Lease-Up Communities (c) | 2,202 | 1,366 | -- | -- | ||||||||||||||
Dispositions / Other (d) | -- | 2 | 653 | (99.7 | %) | |||||||||||||
Total Property Expenses | 47,335 | $39,246 | $35,080 | 11.9 | % | |||||||||||||
Property Net Operating Income | ||||||||||||||||||
"Same Property" Communities (a) | 42,137 | $52,787 | $57,857 | (8.8 | %) | |||||||||||||
Non-"Same Property" Communities (b) | 2,996 | 4,257 | 2,726 | 56.2 | % | |||||||||||||
Development and Lease-Up Communities (c) | 2,202 | 985 | -- | -- | ||||||||||||||
Dispositions / Other (d) | -- | 143 | 1,648 | (91.3 | %) | |||||||||||||
Total Property Net Operating Income | 47,335 | $58,172 | $62,231 | (6.5 | %) |
Three Months Ended March 31, | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Reconciliation of Property Net Operating Income to Net Income | 2003 | 2002 | |||||||||
Net Income (GAAP) | $ 8,334 | $ 13,982 | |||||||||
Development and construction fees | (1,336 | ) | (1,072 | ) | |||||||
Management fees | (434 | ) | (464 | ) | |||||||
Other income | (1,612 | ) | (2,850 | ) | |||||||
Property management expense | 2,537 | 2,395 | |||||||||
Fee and asset management expense | 1,563 | 702 | |||||||||
General and administrative expense | 3,611 | 3,085 | |||||||||
Other expenses | 1,077 | 1,178 | |||||||||
Interest expense | 18,356 | 17,104 | |||||||||
Depreciation and amortization | 26,555 | 25,519 | |||||||||
Gain on Sale of Properties | (1,423 | ) | -- | ||||||||
Equity in income of joint ventures | (2,643 | ) | (225 | ) | |||||||
Distributions on units convertible into perpetual preferred shares | 3,218 | 3,218 | |||||||||
Income allocated to units convertible into common shares | 369 | 454 | |||||||||
Income from discontinued operations | -- | (795 | ) | ||||||||
Property Net Operating Income | $ 58,172 | $ 62,231 |
Income from Discontinued Operations(e) | Three Months Ended March 31, | ||||||
---|---|---|---|---|---|---|---|
2003 | 2002 | ||||||
Property Revenues | $-- | $2,306 | |||||
Property Expenses | -- | 973 | |||||
Property Net Operating Income | -- | 1,333 | |||||
Depreciation | -- | 538 | |||||
Income from Discontinued Operations | $-- | $ 795 |
Notes: | |
(a) | "Same Property" Communities are stabilized communities owned by the Company as of January 1, 2002. |
(b) | Non-"Same Property" Communities are stabilized communities acquired or developed by the Company after January 1, 2002. |
(c) | Development and Lease-Up Communities are non-stabilized communities developed or acquired by the Company after January 1, 2002. |
(d) | Disposition Communities include those communities disposed of by the Company since January 1, 2002, that the Company continues to manage and therefore are not classified as "Discontinued Operations" |
(e) | Represents operating results for the following communities disposed of in 4Q02: Camden Wallingford, Camden Waterford and Camden Chasewood. |
8 |
EARNINGS OUTLOOK | |||||||
---|---|---|---|---|---|---|---|
(Unaudited) |
2Q03 | 2Q03 | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2Q03 Earnings Outlook | Low Range | High Range | ||||||||||||||||
Projected Earnings Per Share (diluted) | $ | 0.11 | $ | 0.13 | ||||||||||||||
Projected real estate depreciation | 0.60 | 0.60 | ||||||||||||||||
Projected adjustments for unconsolidated joint ventures | 0.01 | 0.01 | ||||||||||||||||
Projected income allocated to units convertible into common shares | 0.01 | 0.01 | ||||||||||||||||
Projected gain on sale of properties | 0.00 | 0.00 | ||||||||||||||||
Projected Funds from Operations (FFO) Per Share (diluted) | $ | 0.73 | $ | 0.75 |
2003 | 2003 | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2003 Full Year Earnings Outlook | Low Range | High Range | ||||||||||||||||
Projected Earnings Per Share (diluted) | $ | 0.63 | $ | 0.73 | ||||||||||||||
Projected real estate depreciation | 2.44 | 2.44 | ||||||||||||||||
Projected adjustments for unconsolidated joint ventures | 0.03 | 0.03 | ||||||||||||||||
Projected income allocated to units convertible into common shares | 0.03 | 0.03 | ||||||||||||||||
Projected gain on sale of properties | (0.03 | ) | (0.03 | ) | ||||||||||||||
Projected Funds from Operations (FFO) Per Share (diluted) | $ | 3.10 | $ | 3.20 |
In addition to historical information, this document 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. |
9 |