Camden Property Trust (CPT) 8-K Form 8K 07/29/2003

EXHIBIT 99.1

CAMDEN PROPERTY TRUST ANNOUNCES
SECOND QUARTER 2003 OPERATING RESULTS

Houston, TEXAS (July 29, 2003) – Camden Property Trust (NYSE: CPT) announced that its funds from operations (“FFO”) for the second quarter of 2003 totaled $0.74 per diluted share or $31.7 million, as compared to $0.83 per diluted share or $37.5 million reported for the same period in 2002. On a year-to-date basis, Camden’s six-month FFO totaled $1.49 per diluted share or $64.0 million in 2003, compared to $1.73 per diluted share or $77.6 million in 2002. Net income (“EPS”) for the second quarter of 2003 was $0.14 per diluted share compared to $0.28 per diluted share for the same period in 2002. For the six months ended June 30, 2003, EPS totaled $0.35 per diluted share compared to $0.60 per diluted share in 2002. A reconciliation of net income to FFO is included in the financial tables accompanying this press release.

Physical occupancy levels averaged 92.4% during the second quarter of 2003 as compared to 91.4% in the first quarter of 2003 and 92.1% in the second quarter of 2002. For the 42,137 apartment homes included in “same-property” results, second quarter 2003 revenues decreased 1.3% while operating expenses increased 1.3%, producing a 3.0% decline in same-property net operating income (“NOI”) compared to the second quarter of 2002. On a sequential basis, second quarter 2003 same property NOI increased 1.5% compared to first quarter 2003, with revenues increasing 2.5% and expenses increasing 4.2% compared to the prior quarter. On a year-to-date basis, 2003 same property NOI declined 5.9%, with a revenue decrease of 2.4% and expense growth of 3.4% compared to the same period in 2002. 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.

The Company completed lease-ups at Camden Ybor City in Tampa, FL and Camden Vineyards in Murrieta, CA during the quarter, and those properties are currently 94% and 95% occupied respectively. Construction was completed at Camden Oak Crest in Houston, TX during the quarter, and the community is currently 68% leased and 62% occupied. At quarter-end, Camden had three additional communities under construction, with lease-ups underway at all three projects. Camden Sierra at Otay Ranch in San Diego, CA is currently 76% leased and 71% occupied; construction should be completed during the third quarter of 2003. Camden Tuscany in San Diego, CA is currently 77% leased and 64% occupied; construction should be completed by the end of the third quarter of 2003. Camden Harbor View in Long Beach, CA is currently 21% leased and 18% occupied; construction should be completed by the end of the first quarter of 2004.

Management expects EPS for the third quarter of 2003 to be between $0.11 and $0.15 per diluted share, and FFO to be between $0.74 and $0.78 per diluted share. EPS for 2003 is expected to be between $0.66 and $0.72 per diluted share, and FFO

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is expected to be between $3.07 and $3.13 per diluted share. For 2003, 12 research analysts have contributed FFO estimates on CPT to First Call ranging from $3.02 to $3.11 per diluted share, for a consensus average of $3.07 per diluted share. 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.

The Company will hold a conference call on Wednesday, July 30, 2003 at 9:00 AM CDT to review its second quarter results and discuss its outlook for future performance. To participate in the call, please dial (888) 689-4517 by 8:50 AM CDT, 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.

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.

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 142 properties containing 50,762 apartment homes in the Sunbelt and Midwestern markets from Florida to California.  Upon completion of three properties under development, the Company’s portfolio will increase to 51,882 apartment homes in 145 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.  

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OPERATING RESULTS
(In thousands, except per share and property data amounts)

(Unaudited)	Three Months Ended June 30,				Six Months Ended June 30,
OPERATING DATA	2003		2002		2003		2002
Revenues
Rental income	$   91,486		$   91,185		$ 181,494		$ 181,272
Other property income	8,634		7,693		16,044		14,917
Total property income	100,120		98,878		197,538		196,189
Development and construction fees	1,257		1,088		2,593		2,160
Management fees	431		429		865		893
Other income	1,033		1,358		2,645		4,208
Total revenues	102,841		101,753		203,641		203,450
Expenses
Property operating and maintenance	29,462		28,216		57,544		52,961
Real estate taxes	11,081		10,433		22,245		20,768
Property management	2,424		2,326		4,961		4,721
Fee and asset mangement	1,068		340		2,631		1,042
General and administrative	4,437		3,212		8,048		6,297
Other expenses	312		--		1,389		1,178
Interest	18,519		17,483		36,875		34,587
Depreciation and amortization	27,056		25,113		53,611		50,632
Total expenses	94,359		87,123		187,304		172,186
Income from continuing operations before gain on sale of properties,	8,482		14,630		16,337		31,264
equity in income of joint ventures and minority interests
Gain on sale of properties	659		284		2,082		284
Equity in income of joint ventures	505		128		3,148		353
Income allocated to minority interests
Distributions on units convertible into perpetual preferred shares	(3,218	)	(3,218	)	(6,436	)	(6,436	)
Income allocated to units convertible into common shares	(520	)	(477	)	(889	)	(931	)
Income from continuing operations	5,908		11,347		14,242		24,534
Income from discontinued operations	--		770		--		1,565
Net income	$     5,908		$   12,117		$   14,242		$   26,099
FUNDS FROM OPERATIONS
Net income	$     5,908		$   12,117		$   14,242		$   26,099
Real estate depreciation from continuing operations	25,896		24,099		51,285		48,700
Real estate depreciation from discontinued operations	--		531		--		1,069
Adjustments for unconsolidated joint ventures	524		549		1,059		1,113
(Gain) on sale of properties	(659	)	(284	)	(2,082	)	(284	)
(Gain) on sale of properties held in joint ventures	(451	)	--		(1,436	)	(37	)
Income allocated to units convertible into common shares	520		477		889		931
Funds from operations - diluted	$   31,738		$   37,489		$   63,957		$   77,591
PER SHARE DATA
Net income - basic	$       0.15		$       0.30		$       0.36		$       0.64
Net income - diluted	0.14		0.28		0.35		0.60
Funds from operations - diluted	0.74		0.83		1.49		1.73
Cash distributions	0.64		0.64		1.27		1.27
Weighted average number of common and      common equivalent shares outstanding:
Basic	39,218		41,061		39,191		40,944
Diluted	41,169		45,051		41,019		44,851
FFO - diluted	43,047		45,051		42,900		44,851
PROPERTY DATA
Total operating properties (end of period) *	142		146		142		146
Total operating apartment homes in operating properties (end of period) *	50,762		52,175		50,762		52,175
Total operating apartment homes (weighted average)	46,218		46,659		46,065		46,265
Total operating apartment homes - excluding discontinued operations
(weighted average)	46,218		45,335		46,065		44,941

* Includes joint venture investments.

Note: Please refer to the following pages for definitions and reconciliations of all non-GAAP financial measures presented in this document.

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BALANCE SHEETS
(In thousands)

(Unaudited)	Jun 30,		Mar 31,		Dec 31,		Sep 30,		Jun 30,
	2003		2003		2002		2002		2002
ASSETS
Real estate assets, at cost
Land	$    396,527		$    392,794		$    386,246		$    381,818		$    379,606
Buildings and improvements	2,437,833		2,392,936		2,348,702		2,364,457		2,336,066
	2,834,360		2,785,730		2,734,948		2,746,275		2,715,672
Accumulated depreciation	(549,769	)	(524,165	)	(498,776	)	(497,556	)	(471,919	)
Net operating real estate assets	2,284,591		2,261,565		2,236,172		2,248,719		2,243,753
Properties under development, including land	242,682		264,259		285,636		204,857		192,776
Investment in joint ventures	10,247		10,919		15,386		15,846		16,131
Investment in third party development properties	--		--		--		49,283		46,795
Total real estate assets	2,537,520		2,536,743		2,537,194		2,518,705		2,499,455
Accounts receivable - affiliates	6,736		6,444		5,843		5,588		5,551
Notes receivable
Affiliates	--		1,800		1,800		1,800		1,800
Other	22,532		18,614		18,614		3,000		--
Other assets, net *	40,641		43,143		41,827		43,530		43,208
Cash and cash equivalents	1,550		1,945		405		1,652		2,200
Restricted cash	4,258		4,365		4,216		6,461		6,271
Total assets	$ 2,613,237		$ 2,613,054		$ 2,609,899		$ 2,580,736		$ 2,558,485
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Notes payable
Unsecured	$ 1,236,681		$ 1,208,513		$ 1,177,347		$ 1,116,063		$ 1,045,919
Secured	240,711		248,481		249,669		271,477		280,588
Accounts payable	34,580		36,978		36,189		27,010		29,867
Accrued real estate taxes	20,822		12,782		26,827		30,502		21,187
Accrued expenses and other liabilities	45,126		52,347		49,144		46,773		44,137
Distributions payable	30,663		30,639		30,541		31,177		31,789
Total liabilities	1,608,583		1,589,740		1,569,717		1,523,002		1,453,487
Commitments and contingencies	--		--		--		--		--
Minority interests
Units convertible into perpetual preferred shares	149,815		149,815		149,815		149,815		149,815
Units convertible into common shares	48,354		49,621		50,914		51,997		53,307
Total minority interests	198,169		199,436		200,729		201,812		203,122
Shareholders' equity
Common shares of beneficial interest	480		479		479		479		479
Additional paid-in capital	1,320,045		1,318,649		1,314,592		1,314,556		1,314,325
Distributions in excess of net income	(261,577	)	(241,960	)	(224,756	)	(237,607	)	(221,801	)
Unearned restricted share awards	(15,477	)	(16,282	)	(13,714	)	(15,048	)	(16,190	)
Treasury shares, at cost	(236,986	)	(237,008	)	(237,148	)	(206,458	)	(174,937	)
Total shareholders' equity	806,485		823,878		839,453		855,922		901,876
Total liabilities and shareholders' equity	$ 2,613,237		$ 2,613,054		$ 2,609,899		$ 2,580,736		$ 2,558,485
* includes net deferred charges of:	$        9,268		$        9,925		$      10,190		$        8,340		$        7,167

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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 finanical 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 sales of property, plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Camden’s definition of diluted FFO also assumes conversion at the beginning of the period 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 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 June 30,				Six Months Ended June 30,
	2003		2002		2003		2002
Net income	$   5,908		$ 12,117		$ 14,242		$ 26,099
Real estate depreciation from continuing operations	25,896		24,099		51,285		48,700
Real estate depreciation from discontinued operations	--		531		--		1,069
Adjustments for unconsolidated joint ventures	524		549		1,059		1,113
(Gain) on sale of properties	(659	)	(284	)	(2,082	)	(284	)
(Gain) on sale of properties held in joint ventures	(451	)	--		(1,436	)	(37	)
Income allocated to units convertible into common shares	520		477		889		931
Funds from operations - diluted	$ 31,738		$ 37,489		$ 63,957		$ 77,591
Weighted average number of common and     common equivalent shares outstanding
EPS diluted	41,169		45,051		41,019		44,851
FFO diluted	43,047		45,051		42,900		44,851
Net income per common share - diluted	$     0.14		$     0.28		$     0.35		$     0.60
FFO per common share - diluted	0.74		0.83		1.49		1.73

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:

	3Q03 Range		2003 Range
	Low	High	Low		High
Expected net income per share - diluted	$   0.11	$   0.15	$   0.66		$   0.72
Expected real estate depreciation	0.61	0.61	2.42		2.42
Expected adjustments for unconsolidated joint ventures	0.01	0.01	0.04		0.04
Expected income allocated to units convertible into common shares	0.01	0.01	0.03		0.03
Expected (gain) on sale of properties held in joint ventures	0.00	0.00	(0.03	)	(0.03	)
Expected (gain) on sale of properties	0.00	0.00	(0.05	)	(0.05	)
Expected FFO per share - diluted	$   0.74	$   0.78	$   3.07		$   3.13

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NON-GAAP FINANCIAL MEASURES
DEFINITIONS & RECONCILIATIONS
(In thousands, except per share amounts)

(Unautited)

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 June 30,				Six Months Ended June 30,
	2003		2002		2003		2002
Net income	$   5,908		$ 12,117		$   14,242		$   26,099
Development and construction fees	(1,257	)	(1,088	)	(2,593	)	(2,160	)
Management fees	(431	)	(429	)	(865	)	(893	)
Other income	(1,033	)	(1,358	)	(2,645	)	(4,208	)
Property management expense	2,424		2,326		4,961		4,721
Fee and asset management expense	1,068		340		2,631		1,042
General and administrative expense	4,437		3,212		8,048		6,297
Other expenses	312		--		1,389		1,178
Interest expense	18,519		17,483		36,875		34,587
Depreciation and amortization	27,056		25,113		53,611		50,632
Gain on sale of properties	(659	)	(284	)	(2,082	)	(284	)
Equity in income of joint ventures	(505	)	(128	)	(3,148	)	(353	)
Distributions on units convertible into perpetual preferred shares	3,218		3,218		6,436		6,436
Income allocated to units convertible into common shares	520		477		889		931
Income from discontinued operations	--		(770	)	--		(1,565	)
Net Operating Income (NOI)	$ 59,577		$ 60,229		$ 117,749		$ 122,460

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