UNITED STATES FORM 10-Q [x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE For the quarterly period ended September 30, 2003 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) For the transition period from __________ to _________ Commission file number: 1-12110 CAMDEN PROPERTY TRUST |
TEXAS (State or Other Jurisdiction of Incorporation or Organization) | 76-6088377 (I.R.S. Employer Identification Number) |
3 Greenway Plaza, Suite 1300, Houston, Texas 77046 Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NOIndicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: As of November 1, 2003, there were 39,613,275 shares of Common Shares of Beneficial Interest, $0.01 par value outstanding. |
CAMDEN PROPERTY TRUST |
PART I | FINANCIAL INFORMATION | Page |
---|---|---|
Item 1 | Financial Statements | |
Consolidated Balance Sheets (Unaudited) as of September 30, 2003 and | ||
December 31, 2002 | 3 | |
Consolidated Statements of Operations (Unaudited) for the three and six months | ||
ended September 30, 2003 and 2002 | 4 | |
Consolidated Statements of Cash Flows (Unaudited) for the three and six months | ||
ended September 30, 2003 and 2002 | 5 | |
Notes to Consolidated Financial Statements (Unaudited) | 6 | |
Item 2 | Management's Discussion and Analysis of Financial Condition and | |
Results of Operations | 14 | |
Item 3 | Quantitative and Qualitative Disclosures About Market Risk | 27 |
Item 4 | Controls and Procedures | 27 |
PART II | OTHER INFORMATION | |
Item 1 | Legal Proceedings | 28 |
Item 2 | Changes in Securities and Use of Proceeds | 28 |
Item 3 | Defaults Upon Senior Securities | 28 |
Item 4 | Submission of Matters to a Vote of Security Holders | 28 |
Item 5 | Other Information | 28 |
Item 6 | Exhibits and Reports on Form 8-K | 28 |
SIGNATURES | 29 | |
2 PART I. FINANCIAL INFORMATION |
(In thousands) | ||||||||||||||||||
September 30, 2003 | December 31, 2002 | |||||||||||||||||
Assets | ||||||||||||||||||
Real estate assets, at cost | ||||||||||||||||||
Land | $ | 397,006 | $ | 386,246 | ||||||||||||||
Buildings and improvements | 2,462,252 | 2,348,702 | ||||||||||||||||
2,859,258 | 2,734,948 | |||||||||||||||||
Accumulated depreciation | (575,459 | ) | (498,776 | ) | ||||||||||||||
Net operating real estate assets | 2,283,799 | 2,236,172 | ||||||||||||||||
Properties under development, including land | 236,529 | 285,636 | ||||||||||||||||
Investment in joint ventures | 9,994 | 15,386 | ||||||||||||||||
Total real estate assets | 2,530,322 | 2,537,194 | ||||||||||||||||
Accounts receivable - affiliates | 7,141 | 5,843 | ||||||||||||||||
Notes receivable | ||||||||||||||||||
Affiliates | -- | 1,800 | ||||||||||||||||
Other | 24,419 | 17,614 | ||||||||||||||||
Other assets, net | 39,367 | 41,827 | ||||||||||||||||
Cash and cash equivalents | 2,341 | 405 | ||||||||||||||||
Restricted cash | 4,058 | 4,216 | ||||||||||||||||
Total assets | $ | 2,607,648 | $ | 2,608,899 | ||||||||||||||
Liabilities and shareholders' equity | ||||||||||||||||||
Liabilities | ||||||||||||||||||
Notes payable | ||||||||||||||||||
Unsecured | $ | 1,248,852 | $ | 1,177,347 | ||||||||||||||
Secured | 232,953 | 249,669 | ||||||||||||||||
Accounts payable | 24,025 | 36,189 | ||||||||||||||||
Accrued real estate taxes | 31,444 | 26,827 | ||||||||||||||||
Accrued expenses and other liabilities | 51,266 | 48,144 | ||||||||||||||||
Distributions payable | 30,698 | 30,541 | ||||||||||||||||
Total liabilities | 1,619,238 | 1,568,717 | ||||||||||||||||
Commitments and contingencies | ||||||||||||||||||
Minority interests | ||||||||||||||||||
Units convertible into perpetual preferred shares | 149,815 | 149,815 | ||||||||||||||||
Units convertible into common shares | 47,382 | 50,914 | ||||||||||||||||
Total minority interests | 197,197 | 200,729 | ||||||||||||||||
Shareholders' equity | ||||||||||||||||||
Common shares of beneficial interest | 481 | 479 | ||||||||||||||||
Additional paid-in capital | 1,321,103 | 1,314,592 | ||||||||||||||||
Distributions in excess of net income | (281,256 | ) | (224,756 | ) | ||||||||||||||
Unearned restricted share awards | (12,667 | ) | (13,714 | ) | ||||||||||||||
Treasury shares, at cost | (236,448 | ) | (237,148 | ) | ||||||||||||||
Total shareholders' equity | 791,213 | 839,453 | ||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,607,648 | $ | 2,608,899 | ||||||||||||||
See Notes to Consolidated Financial Statements. 3 CAMDEN PROPERTY TRUST |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2003 | 2002 | 2003 | 2002 | |||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Rental revenues | $ | 93,490 | $ | 92,644 | $ | 274,984 | $ | 273,916 | ||||||||||||||||||||||||
Other property revenues | 8,588 | 8,092 | 24,632 | 23,009 | ||||||||||||||||||||||||||||
Total property revenues | 102,078 | 100,736 | 299,616 | 296,925 | ||||||||||||||||||||||||||||
Fee and asset management | 1,944 | 1,281 | 5,402 | 4,334 | ||||||||||||||||||||||||||||
Other revenues | 802 | 2,212 | 3,447 | 6,420 | ||||||||||||||||||||||||||||
Total revenues | 104,824 | 104,229 | 308,465 | 307,679 | ||||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||
Property operating and maintenance | 31,361 | 28,649 | 88,905 | 81,610 | ||||||||||||||||||||||||||||
Real estate taxes | 11,203 | 10,113 | 33,448 | 30,881 | ||||||||||||||||||||||||||||
Total property expenses | 42,564 | 38,762 | 122,353 | 112,491 | ||||||||||||||||||||||||||||
Property management | 2,533 | 2,499 | 7,494 | 7,220 | ||||||||||||||||||||||||||||
Fee and asset management | 598 | 560 | 3,229 | 1,602 | ||||||||||||||||||||||||||||
General and administrative | 3,878 | 3,893 | 11,926 | 10,190 | ||||||||||||||||||||||||||||
Other expenses | -- | 1,074 | 1,389 | 2,252 | ||||||||||||||||||||||||||||
Losses related to early retirement of debt | -- | 234 | -- | 234 | ||||||||||||||||||||||||||||
Interest | 18,584 | 18,075 | 55,459 | 52,662 | ||||||||||||||||||||||||||||
Amortization of deferred financing costs | 658 | 544 | 1,923 | 1,530 | ||||||||||||||||||||||||||||
Depreciation | 26,353 | 25,595 | 78,699 | 75,241 | ||||||||||||||||||||||||||||
Total expenses | 95,168 | 91,236 | 282,472 | 263,422 | ||||||||||||||||||||||||||||
Income from continuing operations before gain on sale of properties, | 9,656 | 12,993 | 25,993 | 44,257 | ||||||||||||||||||||||||||||
equity in income of joint ventures and minority interests | ||||||||||||||||||||||||||||||||
Gain on sale of properties | 89 | 3 | 2,171 | 287 | ||||||||||||||||||||||||||||
Equity in income of joint ventures | 4 | 35 | 3,152 | 388 | ||||||||||||||||||||||||||||
Income allocated to minority interests | ||||||||||||||||||||||||||||||||
Distributions on units convertible into perpetual preferred shares | (3,218 | ) | (3,218 | ) | (9,654 | ) | (9,654 | ) | ||||||||||||||||||||||||
Income allocated to units convertible into common shares | (593 | ) | (276 | ) | (1,482 | ) | (1,207 | ) | ||||||||||||||||||||||||
Income from continuing operations | 5,938 | 9,537 | 20,180 | 34,071 | ||||||||||||||||||||||||||||
Income from discontinued operations | -- | 698 | -- | 2,263 | ||||||||||||||||||||||||||||
Net income | $ | 5,938 | $ | 10,235 | $ | 20,180 | $ | 36,334 | ||||||||||||||||||||||||
Earnings per share - basic | ||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 0.15 | $ | 0.23 | $ | 0.51 | $ | 0.83 | ||||||||||||||||||||||||
Income from discontinued operations | -- | 0.02 | -- | 0.06 | ||||||||||||||||||||||||||||
Net income | $ | 0.15 | $ | 0.25 | $ | 0.51 | $ | 0.89 | ||||||||||||||||||||||||
Earnings per share - diluted | ||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 0.14 | $ | 0.22 | $ | 0.49 | $ | 0.79 | ||||||||||||||||||||||||
Income from discontinued operations | -- | 0.02 | -- | 0.05 | ||||||||||||||||||||||||||||
Net income | $ | 0.14 | $ | 0.24 | $ | 0.49 | $ | 0.84 | ||||||||||||||||||||||||
Distributions declared per common share | $ | 0.635 | $ | 0.635 | $ | 1.905 | $ | 1.905 | ||||||||||||||||||||||||
Weighted average number of common shares outstanding | 39,290 | 40,645 | 39,224 | 40,843 | ||||||||||||||||||||||||||||
Weighted average number of common and common dilutive | ||||||||||||||||||||||||||||||||
equivalent shares outstanding | 41,465 | 44,346 | 41,170 | 44,681 |
See Notes to Consolidated Financial Statements. 4 CAMDEN PROPERTY TRUST |
Nine months Ended September 30, | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2003 | 2002 | |||||||||||||
Cash flow from operating activities | ||||||||||||||
Net income | $ | 20,180 | $ | 36,334 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||
Income from discontinued operations | -- | (2,263 | ) | |||||||||||
Depreciation and amortization | 80,622 | 76,771 | ||||||||||||
Equity in income of joint ventures, net of cash received | 782 | 1,227 | ||||||||||||
Gain on sale of properties | (2,171 | ) | (287 | ) | ||||||||||
Income allocated to units convertible into common shares | 1,482 | 1,207 | ||||||||||||
Accretion of discount on unsecured notes payable | 505 | 375 | ||||||||||||
Net change in operating accounts | 4,623 | 16,547 | ||||||||||||
Net cash provided by operating activities of continuing operations | 106,023 | 129,911 | ||||||||||||
Net cash provided by operating activities of discontinued operations | -- | 3,707 | ||||||||||||
Net cash provided by operating activities | 106,023 | 133,618 | ||||||||||||
Cash flow from investing activities | ||||||||||||||
Increase in real estate assets | (85,012 | ) | (215,750 | ) | ||||||||||
Net proceeds from sale of properties and townhomes | 13,498 | 3,797 | ||||||||||||
Increase in notes receivable - other | (6,805 | ) | (3,000 | ) | ||||||||||
Decrease in notes receivable - affiliates | 1,800 | -- | ||||||||||||
Decrease in investments in joint ventures | 4,610 | -- | ||||||||||||
Increase in investments in third party development properties | -- | (6,449 | ) | |||||||||||
Decrease in investments in third party development properties | -- | 27,149 | ||||||||||||
Other | (1,431 | ) | (1,290 | ) | ||||||||||
Net cash used in investing activities | (73,340 | ) | (195,543 | ) | ||||||||||
Cash flow from financing activities | ||||||||||||||
Net increase in unsecured line of credit and short term borrowings | 71,000 | 77,000 | ||||||||||||
Proceeds from notes payable | -- | 149,298 | ||||||||||||
Repayment of notes payable | (16,716 | ) | (46,180 | ) | ||||||||||
Distributions to shareholders and minority interests | (90,739 | ) | (92,611 | ) | ||||||||||
Repurchase of common shares and units convertible into common shares | -- | (31,954 | ) | |||||||||||
Other | 5,708 | 4,845 | ||||||||||||
Net cash (used in) provided by financing activities | (30,747 | ) | 60,398 | |||||||||||
Net increase (decrease) in cash and cash equivalents | 1,936 | (1,527 | ) | |||||||||||
Cash and cash equivalents, beginning of period | 405 | 3,179 | ||||||||||||
Cash and cash equivalents, end of period | $ | 2,341 | $ | 1,652 | ||||||||||
Supplemental information | ||||||||||||||
Cash paid for interest, net of interest capitalized | $ | 50,554 | $ | 50,781 | ||||||||||
Interest capitalized | 12,267 | 7,882 | ||||||||||||
Supplemental schedule of noncash investing | ||||||||||||||
and financing activities | ||||||||||||||
Value of shares issued under benefit plans, net | $ | 2,302 | $ | 9,999 | ||||||||||
Conversion of operating partnership units to common shares | 318 | 694 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2003 | 2002 | 2003 | 2002 | |||||||||||||||||||||||||||||
Basic earnings per share calculation | ||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 5,938 | $ | 9,537 | $ | 20,180 | $ | 34,071 | ||||||||||||||||||||||||
Income from discontinued operations | -- | 698 | -- | 2,263 | ||||||||||||||||||||||||||||
Net income | $ | 5,938 | $ | 10,235 | $ | 20,180 | $ | 36,334 | ||||||||||||||||||||||||
Income from continuing operations - per share | $ | 0.15 | $ | 0.23 | $ | 0.51 | $ | 0.83 | ||||||||||||||||||||||||
Income from discontinued operations - per share | -- | 0.02 | -- | 0.06 | ||||||||||||||||||||||||||||
Net income - per share | $ | 0.15 | $ | 0.25 | $ | 0.51 | $ | 0.89 | ||||||||||||||||||||||||
Weighted average common shares outstanding | 39,290 | 40,645 | 39,224 | 40,843 | ||||||||||||||||||||||||||||
Diluted earnings per share calculation | ||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 5,938 | $ | 9,537 | $ | 20,180 | $ | 34,071 | ||||||||||||||||||||||||
Income allocated to units convertible into common shares | 9 | 276 | 23 | 1,207 | ||||||||||||||||||||||||||||
Income from continuing operations, as adjusted | 5,947 | 9,813 | 20,203 | 35,278 | ||||||||||||||||||||||||||||
Income from discontinued operations | -- | 698 | -- | 2,263 | ||||||||||||||||||||||||||||
Net income, as adjusted | $ | 5,947 | $ | 10,511 | $ | 20,203 | $ | 37,541 | ||||||||||||||||||||||||
Income from continuing operations, as adjusted - per share | $ | 0.14 | $ | 0.22 | $ | 0.49 | $ | 0.79 | ||||||||||||||||||||||||
Income from discontinued operations - per share | -- | 0.02 | -- | 0.05 | ||||||||||||||||||||||||||||
Net income, as adjusted - per share | $ | 0.14 | $ | 0.24 | $ | 0.49 | $ | 0.84 | ||||||||||||||||||||||||
Weighted average common shares outstanding | 39,290 | 40,645 | 39,224 | 40,843 | ||||||||||||||||||||||||||||
Incremental shares issuable from assumed conversion of: | ||||||||||||||||||||||||||||||||
Common share options and awards granted | 1,613 | 1,238 | 1,379 | 1,374 | ||||||||||||||||||||||||||||
Units convertible into common shares | 562 | 2,463 | 567 | 2,464 | ||||||||||||||||||||||||||||
Weighted average common and common dilutive equivalent | ||||||||||||||||||||||||||||||||
shares outstanding | 41,465 | 44,346 | 41,170 | 44,681 | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Three months Ended September 30, 2002 | Nine months Ended September 30, 2002 | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total property revenues | $ | 2,275 | $ | 6,870 | ||||||||||||||||
Total property expenses | 1,041 | 3,002 | ||||||||||||||||||
Net operating income | 1,234 | 3,868 | ||||||||||||||||||
Depreciation | 536 | 1,605 | ||||||||||||||||||
Income from discontinued operations | $ | 698 | $ | 2,263 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
September 30, 2003 | December 31, 2002 | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Unsecured line of credit and short term borrowings | $ | 167.0 | $ | 96.0 | ||||||||||||||||
Senior unsecured notes | ||||||||||||||||||||
7.03% Notes, due 2003 | 50.0 | 50.0 | ||||||||||||||||||
7.14% Notes, due 2004 | 199.9 | 199.7 | ||||||||||||||||||
7.11% - 7.28% Notes, due 2006 | 174.5 | 174.4 | ||||||||||||||||||
5.98% Notes, due 2007 | 149.4 | 149.3 | ||||||||||||||||||
6.77% Notes, due 2010 | 99.9 | 99.9 | ||||||||||||||||||
7.69% Notes, due 2011 | 149.4 | 149.4 | ||||||||||||||||||
5.93% Notes, due 2012 | 199.2 | 199.1 | ||||||||||||||||||
1,022.3 | 1,021.8 | |||||||||||||||||||
Medium term notes | ||||||||||||||||||||
6.88% - 7.17% Notes, due 2004 | 30.0 | 30.0 | ||||||||||||||||||
7.63% Notes, due 2009 | 15.0 | 15.0 | ||||||||||||||||||
6.79% Notes, due 2010 | 14.5 | 14.5 | ||||||||||||||||||
59.5 | 59.5 | |||||||||||||||||||
Total unsecured notes | 1,248.8 | 1,177.3 | ||||||||||||||||||
Secured notes | ||||||||||||||||||||
7.10% - 8.50% Conventional Mortgage Notes, due 2005 - 2009 | 134.1 | 150.0 | ||||||||||||||||||
1.85% - 7.29% Tax-exempt Mortgage Notes, due 2025 - 2032 | 98.9 | 99.7 | ||||||||||||||||||
233.0 | 249.7 | |||||||||||||||||||
Total notes payable | $ | 1,481.8 | $ | 1,427.0 | ||||||||||||||||
Nine months Ended September 30, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2003 | 2002 | |||||||||||||||||||
Decrease (increase) in assets: | ||||||||||||||||||||
Accounts receivable - affiliates | $ | (920 | ) | $ | (407 | ) | ||||||||||||||
Other assets, net | 1,114 | (8,027 | ) | |||||||||||||||||
Restricted cash | 158 | (858 | ) | |||||||||||||||||
Increase (decrease) in liabilities: | ||||||||||||||||||||
Accounts payable | (12,164 | ) | 13,664 | |||||||||||||||||
Accrued real estate taxes | 4,943 | 2,371 | ||||||||||||||||||
Accrued expenses and other liabilities | 11,492 | 9,804 | ||||||||||||||||||
Net change in operating accounts | $ | 4,623 | $ | 16,547 | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2003 | 2002 | 2003 | 2002 | |||||||||||||||||||||||||||||||||||
Net income, as reported | $ | 5,938 | $ | 10,235 | $ | 20,180 | $ | 36,334 | ||||||||||||||||||||||||||||||
Per share - basic | 0.15 | 0.25 | 0.51 | 0.89 | ||||||||||||||||||||||||||||||||||
Per share - diluted | 0.14 | 0.24 | 0.49 | 0.84 | ||||||||||||||||||||||||||||||||||
Net income, pro forma | $ | 5,623 | $ | 9,999 | $ | 19,487 | $ | 35,906 | ||||||||||||||||||||||||||||||
Per share - basic | 0.14 | 0.25 | 0.50 | 0.88 | ||||||||||||||||||||||||||||||||||
Per share - diluted | 0.14 | 0.23 | 0.47 | 0.83 | ||||||||||||||||||||||||||||||||||
Share-based compensation cost: | ||||||||||||||||||||||||||||||||||||||
Included in net income, as reported | $ | 751 | $ | 775 | $ | 2,372 | $ | 2,163 | ||||||||||||||||||||||||||||||
Included in net income, pro forma | 1,066 | 1,010 | 3,065 | 2,591 |
o | the results of our efforts to implement our property development, construction and acquisition strategies; | ||
o | the effects of economic conditions, including rising interest rates; | ||
o | our ability to generate sufficient cash flows; | ||
o | the failure to qualify as a real estate investment trust; | ||
o | the costs of our capital and debt; | ||
o | changes in our capital requirements; | ||
o | the actions of our competitors and our ability to respond to those actions; | ||
o | changes in governmental regulations, tax rates and similar matters; and | ||
o | environmental uncertainties and disasters. |
September 30, 2003 | December 31, 2002 | ||||||||||||||||||||||||||||||||
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Apartment Homes | Properties | Apartment Homes | Properties | ||||||||||||||||||||||||||||||
Operating Properties | |||||||||||||||||||||||||||||||||
West Region | |||||||||||||||||||||||||||||||||
Las Vegas, Nevada (a) | 9,625 | 33 | 10,017 | 35 | |||||||||||||||||||||||||||||
Denver, Colorado (a) | 2,529 | 8 | 2,529 | 8 | |||||||||||||||||||||||||||||
Phoenix, Arizona | 2,433 | 8 | 2,433 | 8 | |||||||||||||||||||||||||||||
Southern California | 2,499 | 7 | 1,917 | 5 | |||||||||||||||||||||||||||||
Tucson, Arizona | 821 | 2 | 821 | 2 | |||||||||||||||||||||||||||||
Central Region | |||||||||||||||||||||||||||||||||
Dallas, Texas | 8,359 | 23 | 8,359 | 23 | |||||||||||||||||||||||||||||
Houston, Texas | 6,810 | 15 | 6,446 | 14 | |||||||||||||||||||||||||||||
St. Louis, Missouri | 2,123 | 6 | 2,123 | 6 | |||||||||||||||||||||||||||||
Austin, Texas | 1,745 | 6 | 1,745 | 6 | |||||||||||||||||||||||||||||
Corpus Christi, Texas | 1,284 | 3 | 1,284 | 3 | |||||||||||||||||||||||||||||
Kansas City, Missouri | 596 | 1 | 596 | 1 | |||||||||||||||||||||||||||||
East Region | |||||||||||||||||||||||||||||||||
Tampa, Florida | 6,089 | 13 | 6,089 | 13 | |||||||||||||||||||||||||||||
Orlando, Florida | 2,804 | 6 | 2,804 | 6 | |||||||||||||||||||||||||||||
Charlotte, North Carolina | 1,659 | 6 | 1,659 | 6 | |||||||||||||||||||||||||||||
Louisville, Kentucky | 1,448 | 5 | 1,448 | 5 | |||||||||||||||||||||||||||||
Greensboro, North Carolina | 520 | 2 | 520 | 2 | |||||||||||||||||||||||||||||
Total Operating Properties | 51,344 | 144 | 50,790 | 143 | |||||||||||||||||||||||||||||
Properties Under Development | |||||||||||||||||||||||||||||||||
West Region | |||||||||||||||||||||||||||||||||
Southern California | 538 | 1 | 1,120 | 3 | |||||||||||||||||||||||||||||
Central Region | |||||||||||||||||||||||||||||||||
Houston, Texas | -- | -- | 364 | 1 | |||||||||||||||||||||||||||||
Total Properties Under Development | 538 | 1 | 1,484 | 4 | |||||||||||||||||||||||||||||
Total Properties | 51,882 | 145 | 52,274 | 147 | |||||||||||||||||||||||||||||
Less: Joint Venture Properties (a) | 4,547 | 17 | 4,939 | 19 | |||||||||||||||||||||||||||||
Total Properties Owned 100% | 47,335 | 128 | 47,335 | 128 | |||||||||||||||||||||||||||||
(a) | Includes properties held in joint ventures as follows: one property with 320 apartment homes in Colorado in which we own a 50% interest, the remaining interest is owned by an unaffiliated private investor; and 16 properties with 4,227 apartment homes (18 properties with 4,619 apartment homes at December 31, 2002) in Nevada in which we own a 20% interest, the remaining interest is owned by an unaffiliated private investor. |
($ in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Property and Location | Number of Apartment Homes | Cost to Date | % Leased at 11/3/03 | Date of Completion | Estimated Date of Stabilization | |||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Camden Oak Crest | ||||||||||||||||||||||||||||||||||||||||||||||||
Houston, TX | 364 | $ | 22.3 | 76% | 2Q03 | 2Q04 | ||||||||||||||||||||||||||||||||||||||||||
Camden Tuscany | ||||||||||||||||||||||||||||||||||||||||||||||||
San Diego, CA | 160 | 38.9 | 96% | 3Q03 | 4Q03 | |||||||||||||||||||||||||||||||||||||||||||
Camden Sierra at Otay Ranch | ||||||||||||||||||||||||||||||||||||||||||||||||
Chula Vista, CA | 422 | 58.8 | 82% | 3Q03 | 1Q04 | |||||||||||||||||||||||||||||||||||||||||||
946 | $ | 120 | .0 | |||||||||||||||||||||||||||||||||||||||||||||
At September 30, 2003, we had one property under development as follows: |
($ in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Property and Location | Number of Apartment Homes | Estimated Cost | Cost Incurred At 9/30/03 | Estimated Date of Completion | Estimated Date of Stabilization | ||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Camden Harbor View | |||||||||||||||||||||||||||||||||||||||||||||||
Long Beach, CA | 538 | $ | 137.5 | $ | 133.6 | 1Q04 | 4Q04 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2003 | 2002 | 2003 | 2002 | |||||||||||||||||||||||||||||||||||
Total property revenue per apartment home per month | $ | 730 | $ | 732 | $ | 720 | $ | 729 | ||||||||||||||||||||||||||||||
Annualized total property expenses per apartment home | $ | 3,655 | $ | 3,379 | $ | 3,528 | $ | 3,314 | ||||||||||||||||||||||||||||||
Weighted average number of operating apartment homes | 46,581 | 45,892 | 46,237 | 45,258 | ||||||||||||||||||||||||||||||||||
Weighted average occupancy, by region | ||||||||||||||||||||||||||||||||||||||
West | 95.0% | 94.4% | 93.8% | 93.1% | ||||||||||||||||||||||||||||||||||
Central | 93.0% | 92.3% | 91.2% | 92.5% | ||||||||||||||||||||||||||||||||||
East | 94.2% | 90.6% | 92.8% | 90.1% | ||||||||||||||||||||||||||||||||||
Total operating properties owned 100% | 93.9% | 92.5% | 92.4% | 92.1% |
($ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Apartment Homes | Three Months Ended September 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
at 9/30/03 | 2003 | 2002 | $ | % | |||||||||||||||||||||||||||||||||||||||||||
Property revenues | |||||||||||||||||||||||||||||||||||||||||||||||
Same property communities | 42,137 | $ | 89,928 | $ | 91,081 | $ | (1,153 | ) | (1.3 | )% | |||||||||||||||||||||||||||||||||||||
Non-same property communities | 3,714 | 9,306 | 7,282 | 2,024 | 27.8 | ||||||||||||||||||||||||||||||||||||||||||
Development and lease-up communities | 1,484 | 2,645 | -- | 2,645 | -- | ||||||||||||||||||||||||||||||||||||||||||
Dispositions/other | -- | 199 | 2,373 | (2,174 | ) | (91.6 | ) | ||||||||||||||||||||||||||||||||||||||||
Total property revenues | 47,335 | 102,078 | 100,736 | 1,342 | 1.3 | ||||||||||||||||||||||||||||||||||||||||||
Property expenses | |||||||||||||||||||||||||||||||||||||||||||||||
Same property communities | 42,137 | 37,672 | 35,278 | 2,394 | 6.8 | ||||||||||||||||||||||||||||||||||||||||||
Non-same property communities | 3,714 | 3,596 | 2,819 | 777 | 27.6 | ||||||||||||||||||||||||||||||||||||||||||
Development and lease-up communities | 1,484 | 1,122 | -- | 1,122 | -- | ||||||||||||||||||||||||||||||||||||||||||
Dispositions/other | -- | 174 | 665 | (491 | ) | (73.8 | ) | ||||||||||||||||||||||||||||||||||||||||
Total property expenses | 47,335 | 42,564 | 38,762 | 3,802 | 9.8 | ||||||||||||||||||||||||||||||||||||||||||
Property net operating income | |||||||||||||||||||||||||||||||||||||||||||||||
Same property communities | 42,137 | 52,256 | 55,803 | (3,547 | ) | (6.4 | ) | ||||||||||||||||||||||||||||||||||||||||
Non-same property communities | 3,714 | 5,710 | 4,463 | 1,247 | 27.9 | ||||||||||||||||||||||||||||||||||||||||||
Development and lease-up communities | 1,484 | 1,523 | -- | 1,523 | -- | ||||||||||||||||||||||||||||||||||||||||||
Dispositions/other | -- | 25 | 1,708 | (1,683 | ) | (98.5 | ) | ||||||||||||||||||||||||||||||||||||||||
Total property net operating income | 47,335 | $ | 59,514 | $ | 61,974 | $ | (2,460 | ) | (4.0 | )% | |||||||||||||||||||||||||||||||||||||
Apartment Homes | Three Months Ended September 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
at 9/30/03 | 2003 | 2002 | $ | % | |||||||||||||||||||||||||||||||||||||||||||
Property revenues | |||||||||||||||||||||||||||||||||||||||||||||||
Same property communities | 42,137 | $ | 266,504 | $ | 272,046 | $ | (5,542 | ) | (2.0 | )% | |||||||||||||||||||||||||||||||||||||
Non-same property communities | 3,714 | 27,689 | 17,782 | 9,907 | 55.7 | ||||||||||||||||||||||||||||||||||||||||||
Development and lease-up communities | 1,484 | 4,930 | -- | 4,930 | -- | ||||||||||||||||||||||||||||||||||||||||||
Dispositions/other | -- | 493 | 7,097 | (6,604 | ) | (93.1 | ) | ||||||||||||||||||||||||||||||||||||||||
Total property revenues | 47,335 | 299,616 | 296,925 | 2,691 | 0.9 | ||||||||||||||||||||||||||||||||||||||||||
Property expenses | |||||||||||||||||||||||||||||||||||||||||||||||
Same property communities | 42,137 | 107,902 | 103,184 | 4,718 | 4.6 | ||||||||||||||||||||||||||||||||||||||||||
Non-same property communities | 3,714 | 11,523 | 7,157 | 4,366 | 61.0 | ||||||||||||||||||||||||||||||||||||||||||
Development and lease-up communities | 1,484 | 2,593 | -- | 2,593 | -- | ||||||||||||||||||||||||||||||||||||||||||
Dispositions/other | -- | 335 | 2,150 | (1,815 | ) | (84.4 | ) | ||||||||||||||||||||||||||||||||||||||||
Total property expenses | 47,335 | 122,353 | 112,491 | 9,862 | 8.8 | ||||||||||||||||||||||||||||||||||||||||||
Property net operating income | |||||||||||||||||||||||||||||||||||||||||||||||
Same property communities | 42,137 | 158,602 | 168,862 | (10,260 | ) | (6.1 | ) | ||||||||||||||||||||||||||||||||||||||||
Non-same property communities | 3,714 | 16,166 | 10,625 | 5,541 | 52.2 | ||||||||||||||||||||||||||||||||||||||||||
Development and lease-up communities | 1,484 | 2,337 | -- | 2,337 | -- | ||||||||||||||||||||||||||||||||||||||||||
Dispositions/other | -- | 158 | 4,947 | (4,789 | ) | (96.8 | ) | ||||||||||||||||||||||||||||||||||||||||
Total property net operating income | 47,335 | $ | 177,263 | $ | 184,434 | $ | (7,171 | ) | (3.9 | )% | |||||||||||||||||||||||||||||||||||||
(i) | using what management believes is a prudent combination of debt and common and preferred equity; | ||
(ii) | extending and sequencing the maturity dates of our debt where possible; | ||
(iii) | managing interest rate exposure using what management believes are prudent levels of fixed and floating rate debt; | ||
(iv) | borrowing on an unsecured basis in order to maintain a substantial number of unencumbered assets; and | ||
(v) | maintaining conservative coverage ratios. |
(i) | operating expenses; | ||
(ii) | current debt service requirements; | ||
(iii) | recurring capital expenditures; | ||
(iv) | initial funding of property developments and acquisitions; | ||
(vi) | common share repurchases; and | ||
(vii) | distributions on our common and preferred equity. |
Year | Amount | |||
---|---|---|---|---|
2003 | $ | 51.0 | ||
2004 | 234.3 | |||
2005 | 61.0 | |||
2006 | 210.4 | |||
2007 | 165.5 | |||
2008 and thereafter | 759.6 | |||
Total | $ | 1,481.8 | ||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2003 | 2002 | 2003 | 2002 | |||||||||||||||||||||||||||||||||||||||||
Funds from operations: | ||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 5,938 | $ | 10,235 | $ | 20,180 | $ | 36,334 | ||||||||||||||||||||||||||||||||||||
Real estate depreciation from continuing operations | 25,844 | 25,102 | 77,129 | 73,802 | ||||||||||||||||||||||||||||||||||||||||
Real estate depreciation from discontinued operations | -- | 536 | -- | 1,605 | ||||||||||||||||||||||||||||||||||||||||
Adjustments for unconsolidated joint ventures | 529 | 555 | 152 | 1,631 | ||||||||||||||||||||||||||||||||||||||||
Gain on sales of properties | (89 | ) | (3 | ) | (2,171 | ) | (287 | ) | ||||||||||||||||||||||||||||||||||||
Income allocated to units convertible into common shares | 593 | 276 | 1,482 | 1,207 | ||||||||||||||||||||||||||||||||||||||||
Funds from operations - diluted | $ | 32,815 | $ | 36,701 | $ | 96,772 | $ | 114,292 | ||||||||||||||||||||||||||||||||||||
Weighted average common shares outstanding | 39,290 | 40,645 | 39,224 | 40,843 | ||||||||||||||||||||||||||||||||||||||||
Common share options and awards granted | 1,613 | 1,238 | 1,379 | 1,374 | ||||||||||||||||||||||||||||||||||||||||
Units convertible into common shares | 2,440 | 2,463 | 2,447 | 2,464 | ||||||||||||||||||||||||||||||||||||||||
Weighted average common and common equivalent | ||||||||||||||||||||||||||||||||||||||||||||
shares outstanding - diluted | 43,343 | 44,346 | 43,050 | 44,681 | ||||||||||||||||||||||||||||||||||||||||
PART II. OTHER INFORMATION | |||
---|---|---|---|
Item 1. | Legal Proceedings | ||
None | |||
Item 2. | Changes in Securities and Use of Proceeds | ||
None | |||
Item 3. | Defaults Upon Senior Securities | ||
None | |||
Item 4. | Submission of Matters to a Vote of Security Holders | ||
None | |||
Item 5. | Other Information | ||
None |
Item 6. | Exhibits and Reports on Form 8-K | ||||||
(a) | Exhibits | ||||||
31.1 | Certification Pursuant to Section 302(a) of the Sarbanes - Oxley Act of 2002 of Chief Executive Officer dated November 13, 2003. | ||||||
31.2 | Certification Pursuant to Section 302(a) of the Sarbanes - Oxley Act of 2002 of Chief Financial Officer dated November 13, 2003. | ||||||
32.1 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes - Oxley Act of 2002 of Chief Executive Officer dated November 13, 2003. | ||||||
32.2 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes - Oxley Act of 2002 of Chief Financial Officer dated November 13, 2003. | ||||||
(b) | Reports on Form 8-K | ||||||
Current report on Form 8-K dated July 29, 2003 and filed with the Commission on July 30, 2003 contained information under Item 7 (Financial Statements, Pro Forma Financial Information and Exhibits) and Item 12 (Results of Operations and Financial Condition). |
/s/ Dennis M. Steen | November 13, 2003 | ||
Dennis M. Steen Chief Financial Officer, Sr. Vice President - Finance, and Secretary and Treasurer | Date | ||
29 |