CAMDEN PROPERTY TRUST ANNOUNCES THIRD QUARTER 2017 OPERATING RESULTS
Houston, Texas (October 26, 2017) - Camden Property Trust (NYSE:CPT) today announced operating results for the three and nine months ended September 30, 2017. Net Income Attributable to Common Shareholders (“EPS”), Funds from Operations (“FFO”), and Adjusted Funds from Operations (“AFFO”) for the three and nine months ended September 30, 2017 are detailed below. A reconciliation of EPS to FFO is included in the financial tables accompanying this press release.
|
| | | | |
| | Three Months Ended | Nine Months Ended |
| | September 30 | September 30 |
| Per Diluted Share | 2017 | 2016 | 2017 | 2016 |
| EPS | $0.38 | $3.21 | $1.20 | $8.60 |
| FFO | $1.11 | $1.13 | $3.35 | $3.49 |
| AFFO | $0.92 | $0.92 | $2.87 | $3.01 |
EPS, FFO and AFFO for the three and nine months ended September 30, 2017 included approximately $0.05 per diluted share in expenses related to Hurricanes Harvey and Irma.
|
| | | |
| | Quarterly Growth | Sequential Growth | Year-to-Date Growth |
| Same Property Results | 3Q17 vs. 3Q16 | 3Q17 vs. 2Q17 | 2017 vs. 2016 |
| Revenues | 2.5% | 1.1% | 2.8% |
| Expenses | 3.9% | 4.1% | 3.4% |
| Net Operating Income ("NOI") | 1.7% | (0.5)% | 2.5% |
|
| | | | | | |
| Same Property Results | 3Q17 |
| 3Q16 |
| 2Q17 |
|
| Occupancy | 95.9 | % | 95.8 | % | 95.4 | % |
“Operating performance across Camden’s portfolio remains strong, and with recent improvements in the Houston apartment market as a result of Hurricane Harvey, we have raised our full-year 2017 guidance for same property revenue and NOI growth,” said Richard J. Campo, Camden’s Chairman and CEO.
The Company defines same property communities as communities owned and stabilized as of January 1, 2016, excluding properties held for sale. Reported same property expenses for 2017 exclude approximately $3.9 million of property level expenses related to Hurricanes Harvey and Irma. A reconciliation of net income to NOI and same property NOI is included in the financial tables accompanying this press release.
Development Activity
During the quarter, lease-up was completed at Camden Victory Park in Dallas, TX. Construction was completed during the quarter at Camden Lincoln Station in Denver, CO, and construction commenced at Camden RiNo in Denver, CO.
Development Communities - Construction Completed and Projects in Lease-Up ($ in millions)
|
| | | | | |
| | | Total | Total | % Leased |
|
| Community Name | Location | Units | Cost | as of 10/25/2017 |
|
| Camden Lincoln Station | Denver, CO | 267 | $56.4 | 87 | % |
| Camden NoMa II | Washington, DC | 405 | 106.9 | 61 | % |
| Total | | 672 | $163.3 | |
Development Communities - Construction Ongoing ($ in millions) |
| | | | | |
| | | Total | Total | % Leased |
|
| Community Name | Location | Units | Budget | as of 10/25/2017 |
|
| Camden Shady Grove | Rockville, MD | 457 | $116.0 | 45 | % |
| Camden McGowen Station | Houston, TX | 315 | 90.0 |
|
|
| Camden Washingtonian | Gaithersburg, MD | 365 | 90.0 |
|
|
| Camden North End I | Phoenix, AZ | 441 | 105.0 | |
| Camden Grandview II | Charlotte, NC | 28 | 21.0 | |
| Camden RiNo | Denver, CO | 233 | 75.0 | |
| Total | | 1,839 | $497.0 | |
Acquisition/Disposition Activity
In July 2017, the Company entered into a sales contract for Camden Miramar, its student housing community located in Corpus Christi, TX, for approximately $78.0 million. Closing of this sale is not guaranteed and is subject to, among other items, the satisfactory due diligence and financing by the purchaser. The Company has included a $0.01 per share impact for this potential disposition in its FFO guidance for the fourth quarter and full-year 2017, assuming a December 2017 closing date.
Equity Issuances
During the quarter, Camden completed a public offering of 4,750,000 common shares at a net price of $93.18 per share, for net proceeds before expenses of approximately $442.6 million. The Company also issued 28,111 common shares through its ATM program at an average price of $90.44 per share, for total net consideration of approximately $2.5 million.
Hurricane Expenses
The Company incurred approximately $5.0 million or $0.05 per diluted share in expenses during the quarter related to Hurricanes Harvey and Irma, as detailed below. Property expenses from Hurricanes Harvey and Irma have been excluded from same property results.
|
| |
| Property Expenses | $3.9 million |
| Equity in Income of Joint Ventures | $0.4 million |
| General and Administrative Expense | $0.7 million |
| Total Hurricane Expenses | $5.0 million |
Earnings Guidance
Camden updated its earnings guidance for 2017 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for fourth quarter 2017 as detailed below.
|
| | | | | |
| | 4Q17 | 2017 | 2017 Midpoint | |
| Per Diluted Share | Range | Range | Current | Prior | Change |
| EPS | $0.47 - $0.51 | $1.66 - $1.70 | $1.68 | $1.70 | $(0.02) |
| FFO | $1.16 - $1.20 | $4.51 - $4.55 | $4.53 | $4.57 | $(0.04) |
The Company updated its guidance for 2017 same property growth, which was previously provided in July 2017.
|
| | | | | |
| | 2017 | 2017 Midpoint | |
| Same Property Growth | Range | Current | Prior | Change |
|
| Revenues | 2.80% - 3.00% | 2.90% | 2.80% | 0.10 | % |
| Expenses | 3.95% - 4.15% | 4.05% | 4.10% | (0.05 | )% |
| NOI | 2.10% - 2.40% | 2.25% | 2.00% | 0.25 | % |
Camden intends to update its earnings guidance to the market on a quarterly basis. Additional information on the Company’s 2017 financial outlook and a reconciliation of expected EPS to expected FFO are included in the financial tables accompanying this press release.
Conference Call
Friday, October 27, 2017 at 11:00 AM CT
Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061
Passcode: 6883383
Webcast: http://services.choruscall.com/links/cpt171027.html
Supplemental financial information is available in the Investors section of the Company’s website under Earnings Releases or by calling Camden’s Investor Relations Department at (713) 354-2787.
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 (the “Company”) 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. Factors which may cause the Company’s actual results or performance to differ materially from those contemplated by forward-looking statements are described under the heading “Risk Factors” in Camden’s Annual Report on Form 10-K and in other filings with the Securities and Exchange Commission (SEC). Forward-looking statements made in today’s press release represent management’s current opinions at the time of this publication, and the Company assumes no obligation to update or supplement these statements because of subsequent events.
About Camden
Camden Property Trust, an S&P 400 Company, is a real estate company engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns interests in and operates 156 properties containing 54,038 apartment homes across the United States. Upon completion of 6 properties under development, the Company’s portfolio will increase to 55,877 apartment homes in 162 properties. Camden was recently named by FORTUNE® Magazine for the tenth consecutive year as one of the “100 Best Companies to Work For” in America, ranking #22.
For additional information, please contact Camden’s Investor Relations Department at (713) 354-2787 or access our website at camdenliving.com.
|
| | |
| | | |
| CAMDEN | | OPERATING RESULTS |
| | | (In thousands, except per share amounts) |
| | | |
(Unaudited) |
| | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2017 | 2016 | | 2017 | 2016 |
| OPERATING DATA | | | | | |
| Property revenues | | | | | |
| Rental revenues |
| $194,690 |
|
| $187,771 |
| |
| $573,262 |
|
| $564,136 |
|
| Other property revenues | 33,488 |
| 32,464 |
| | 97,807 |
| 95,172 |
|
| Total property revenues | 228,178 |
| 220,235 |
| | 671,069 |
| 659,308 |
|
| | | | | | |
| Property expenses | | | | | |
Property operating and maintenance (a) | 60,090 |
| 53,679 |
| | 164,188 |
| 156,804 |
|
| Real estate taxes | 28,193 |
| 26,695 |
| | 83,916 |
| 80,875 |
|
| Total property expenses | 88,283 |
| 80,374 |
| | 248,104 |
| 237,679 |
|
| | | | | | |
| Non-property income | | | | | |
| Fee and asset management | 2,116 |
| 1,667 |
| | 5,806 |
| 5,223 |
|
| Interest and other income | 385 |
| 927 |
| | 1,579 |
| 1,366 |
|
| Income on deferred compensation plans | 3,648 |
| 3,494 |
| | 11,706 |
| 4,781 |
|
| Total non-property income | 6,149 |
| 6,088 |
| | 19,091 |
| 11,370 |
|
| | | | | | |
| Other expenses | | | | | |
| Property management | 6,201 |
| 5,590 |
| | 19,782 |
| 19,147 |
|
| Fee and asset management | 973 |
| 911 |
| | 2,818 |
| 2,861 |
|
General and administrative (b) | 12,266 |
| 10,810 |
| | 37,585 |
| 34,836 |
|
| Interest | 21,210 |
| 23,076 |
| | 66,132 |
| 69,936 |
|
| Depreciation and amortization | 67,014 |
| 62,832 |
| | 195,781 |
| 187,379 |
|
| Expense on deferred compensation plans | 3,648 |
| 3,494 |
| | 11,706 |
| 4,781 |
|
| Total other expenses | 111,312 |
| 106,713 |
| | 333,804 |
| 318,940 |
|
| | | | | | |
| Loss on early retirement of debt | — |
| — |
| | (323 | ) | — |
|
| Gain on sale of operating properties, including land | — |
| 262,719 |
| | — |
| 295,397 |
|
Equity in income of joint ventures (c) | 1,255 |
| 1,866 |
| | 4,857 |
| 5,052 |
|
| Income from continuing operations before income taxes | 35,987 |
| 303,821 |
| | 112,786 |
| 414,508 |
|
| Income tax expense | (512 | ) | (400 | ) | | (1,008 | ) | (1,204 | ) |
| Income from continuing operations | 35,475 |
| 303,421 |
| | 111,778 |
| 413,304 |
|
| Income from discontinued operations | — |
| — |
| | — |
| 7,605 |
|
| Gain on sale of discontinued operations, net of tax | — |
| — |
| | — |
| 375,237 |
|
| Net income | 35,475 |
| 303,421 |
| | 111,778 |
| 796,146 |
|
Less income allocated to non-controlling interests from
continuing operations | (1,091 | ) | (12,523 | ) | | (3,345 | ) | (17,216 | ) |
| Net income attributable to common shareholders |
| $34,384 |
|
| $290,898 |
| |
| $108,433 |
|
| $778,930 |
|
| | | | | | |
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | | | | | |
| Net income | $35,475 | $303,421 | | $111,778 | $796,146 |
| Other comprehensive income | | | | | |
| Unrealized gain on cash flow hedging activities | 1,754 |
| — |
| | 1,754 |
| — |
|
| Reclassification of net loss on cash flow hedging activities, prior service cost and net loss on post retirement obligation | 34 |
| 32 |
| | 102 |
| 97 |
|
| Comprehensive income | 37,263 |
| 303,453 |
| | 113,634 |
| 796,243 |
|
Less income allocated to non-controlling interests from
continuing operations | (1,091 | ) | (12,523 | ) | | (3,345 | ) | (17,216 | ) |
| Comprehensive income attributable to common shareholders |
| $36,172 |
|
| $290,930 |
| |
| $110,289 |
|
| $779,027 |
|
| | | | | | |
| PER SHARE DATA | | | | | |
| | | | | | |
| Total earnings per common share - basic |
| $0.38 |
|
| $3.23 |
| |
| $1.20 |
|
| $8.63 |
|
| Total earnings per common share - diluted | 0.38 |
| 3.21 |
| | 1.20 |
| 8.60 |
|
| Earnings per share from continuing operations - basic | 0.38 |
| 3.23 |
| | 1.20 |
| 4.35 |
|
| Earnings per share from continuing operations - diluted | 0.38 |
| 3.21 |
| | 1.20 |
| 4.34 |
|
| | | | | | |
| Weighted average number of common shares outstanding: | | | | | |
| Basic | 91,011 |
| 89,669 |
| | 90,351 |
| 89,524 |
|
| Diluted | 92,033 |
| 90,012 |
| | 91,345 |
| 89,858 |
|
(a) Includes approximately $3.9 million in storm-related expenses related to Hurricanes Harvey and Irma for both the three and nine months ended September 30, 2017.
(b) Includes approximately $0.7 million in storm-related expenses related to Hurricanes Harvey and Irma for both the three and nine months ended September 30, 2017.
(c) Includes approximately $0.4 million in storm-related expenses related to Hurricanes Harvey and Irma for both the three and nine months ended September 30, 2017.
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 September 30, | | Nine Months Ended September 30, |
| | 2017 | 2016 | | 2017 | 2016 |
| FUNDS FROM OPERATIONS | | | | | |
| | | | | | |
Net income attributable to common shareholders (a) |
| $34,384 |
|
| $290,898 |
| |
| $108,433 |
|
| $778,930 |
|
| Real estate depreciation and amortization | 65,489 |
| 61,264 |
| | 191,092 |
| 182,694 |
|
| Real estate depreciation from discontinued operations | — |
| — |
| | — |
| 4,327 |
|
| Adjustments for unconsolidated joint ventures | 2,223 |
| 2,266 |
| | 6,650 |
| 6,944 |
|
| Income allocated to non-controlling interests | 1,091 |
| 12,523 |
| | 3,345 |
| 17,216 |
|
| Gain on sale of operating properties, net of tax | — |
| (262,719 | ) | | — |
| (294,954 | ) |
| Gain on sale of discontinued operations, net of tax | — |
| — |
| | — |
| (375,237 | ) |
| Funds from operations |
| $103,187 |
|
| $104,232 |
| |
| $309,520 |
|
| $319,920 |
|
| | | | | | |
Less: recurring capitalized expenditures (b) | (17,506 | ) | (19,246 | ) | | (43,975 | ) | (43,609 | ) |
| | | | | | |
| Adjusted funds from operations - diluted |
| $85,681 |
|
| $84,986 |
| |
| $265,545 |
|
| $276,311 |
|
| | | | | | |
| PER SHARE DATA | | | | | |
| Funds from operations - diluted |
| $1.11 |
|
| $1.13 |
| |
| $3.35 |
|
| $3.49 |
|
| Adjusted funds from operations - diluted | 0.92 |
| 0.92 |
| | 2.87 |
| 3.01 |
|
| Distributions declared per common share | 0.75 |
| 0.75 |
| | 2.25 |
| 2.25 |
|
| Special Distributions declared per common share | — |
| 4.25 |
| | — |
| 4.25 |
|
| | | | | | |
| Weighted average number of common shares outstanding: | | | | | |
| FFO/AFFO - diluted | 93,111 |
| 91,901 |
| | 92,424 |
| 91,749 |
|
| | | | | | |
| PROPERTY DATA | | | | | |
Total operating properties (end of period) (c) | 156 |
| 151 |
| | 156 |
| 151 |
|
Total operating apartment homes in operating properties (end of period) (c) | 54,038 |
| 52,506 |
| | 54,038 |
| 52,506 |
|
| Total operating apartment homes (weighted average) | 46,546 |
| 46,702 |
| | 46,103 |
| 49,521 |
|
| Total operating apartment homes - excluding discontinued operations (weighted average) | 46,546 |
| 46,702 |
| | 46,103 |
| 47,426 |
|
(a) Net income attributable to common shareholders for the three and nine months ended September 30, 2017 included approximately $5.0 million of storm-related expenses related to Hurricanes Harvey and Irma.
(b) Capital expenditures necessary to help preserve the value of and maintain the functionality at our communities.
(c) Includes joint ventures and properties held for sale, if any.
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,
2017 |
| Jun 30,
2017 |
| Mar 31,
2017 |
| Dec 31,
2016 |
| Sep 30,
2016 |
|
| ASSETS | | | | | |
| Real estate assets, at cost | | | | | |
| Land |
| $1,016,097 |
|
| $1,008,459 |
|
| $984,523 |
|
| $967,375 |
|
| $962,507 |
|
| Buildings and improvements | 6,269,561 |
| 6,199,435 |
| 6,071,203 |
| 5,967,023 |
| 5,910,347 |
|
| | 7,285,658 |
| 7,207,894 |
| 7,055,726 |
| 6,934,398 |
| 6,872,854 |
|
| Accumulated depreciation | (2,080,989 | ) | (2,016,259 | ) | (1,952,809 | ) | (1,890,656 | ) | (1,829,563 | ) |
| Net operating real estate assets | 5,204,669 |
| 5,191,635 |
| 5,102,917 |
| 5,043,742 |
| 5,043,291 |
|
| Properties under development, including land | 363,481 |
| 373,294 |
| 377,107 |
| 442,292 |
| 425,452 |
|
| Investments in joint ventures | 28,420 |
| 29,665 |
| 30,062 |
| 30,254 |
| 30,046 |
|
| Total real estate assets | 5,596,570 |
| 5,594,594 |
| 5,510,086 |
| 5,516,288 |
| 5,498,789 |
|
| Accounts receivable – affiliates | 23,620 |
| 23,592 |
| 23,634 |
| 24,028 |
| 23,998 |
|
Other assets, net (a) | 189,253 |
| 155,784 |
| 147,922 |
| 142,010 |
| 143,059 |
|
Short-term investments (b) | — |
| — |
| — |
| 100,000 |
| 100,000 |
|
| Cash and cash equivalents | 350,274 |
| 16,318 |
| 245,529 |
| 237,364 |
| 313,742 |
|
| Restricted cash | 9,178 |
| 8,312 |
| 8,175 |
| 8,462 |
| 8,691 |
|
| Total assets |
| $6,168,895 |
|
| $5,798,600 |
|
| $5,935,346 |
|
| $6,028,152 |
|
| $6,088,279 |
|
| | | | | | |
| | | | | | |
| | | | | | |
| LIABILITIES AND EQUITY | | | | | |
| Liabilities | | | | | |
| Notes payable | | | | | |
| Unsecured |
| $1,338,117 |
|
| $1,437,608 |
|
| $1,583,819 |
|
| $1,583,236 |
|
| $1,582,655 |
|
| Secured | 866,134 |
| 866,292 |
| 866,476 |
| 897,352 |
| 897,971 |
|
| Accounts payable and accrued expenses | 127,557 |
| 116,754 |
| 120,086 |
| 137,813 |
| 143,193 |
|
| Accrued real estate taxes | 70,027 |
| 48,559 |
| 24,682 |
| 49,041 |
| 66,079 |
|
| Distributions payable | 72,962 |
| 69,347 |
| 69,326 |
| 69,161 |
| 82,861 |
|
Other liabilities (c) | 154,506 |
| 134,851 |
| 123,654 |
| 118,959 |
| 122,270 |
|
| Total liabilities | 2,629,303 |
| 2,673,411 |
| 2,788,043 |
| 2,855,562 |
| 2,895,029 |
|
| | | | | | |
| Commitments and contingencies | | | | | |
| Non-qualified deferred compensation share awards | 73,015 |
| 84,050 |
| 75,704 |
| 77,037 |
| 72,222 |
|
| | | | | | |
| Equity | | | | | |
| Common shares of beneficial interest | 1,028 |
| 978 |
| 978 |
| 978 |
| 978 |
|
| Additional paid-in capital | 4,134,206 |
| 3,678,660 |
| 3,675,737 |
| 3,678,277 |
| 3,675,806 |
|
| Distributions in excess of net income attributable to common shareholders | (383,584 | ) | (351,910 | ) | (317,642 | ) | (289,180 | ) | (261,324 | ) |
| Treasury shares, at cost | (364,736 | ) | (364,785 | ) | (365,923 | ) | (373,339 | ) | (373,597 | ) |
Accumulated other comprehensive loss (d) | (7 | ) | (1,795 | ) | (1,829 | ) | (1,863 | ) | (1,816 | ) |
| Total common equity | 3,386,907 |
| 2,961,148 |
| 2,991,321 |
| 3,014,873 |
| 3,040,047 |
|
| Non-controlling interests | 79,670 |
| 79,991 |
| 80,278 |
| 80,680 |
| 80,981 |
|
| Total equity | 3,466,577 |
| 3,041,139 |
| 3,071,599 |
| 3,095,553 |
| 3,121,028 |
|
| Total liabilities and equity |
| $6,168,895 |
|
| $5,798,600 |
|
| $5,935,346 |
|
| $6,028,152 |
|
| $6,088,279 |
|
| | | | | | |
| | | | | | |
| | | | | |
|
| | | | | | |
| (a) Includes: | | | | | |
| net deferred charges of: |
| $1,312 |
|
| $1,487 |
|
| $1,683 |
|
| $1,915 |
|
| $2,140 |
|
| fair value adjustment of derivative instruments: |
| $1,754 |
|
| $— |
|
| $— |
|
| $— |
|
| $— |
|
| | | | | | |
(b) Our short-term investments consisted wholly of a certificate of deposit that had a maturity date of January 4, 2017.
|
| | | | | | |
| (c) Includes deferred revenues of: |
| $1,463 |
|
| $513 |
|
| $1,455 |
|
| $1,541 |
|
| $1,598 |
|
| | | | | | |
| (d) Represents the unrealized net loss and unamortized prior service costs on post retirement obligations, and unrealized gain on cash flow hedging activities. |
|
| | |
| | |
| 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 (computed in accordance with accounting principles generally accepted in the United States of America ("GAAP")), excluding gains (or losses) associated with the sale of previously depreciated operating properties, real estate depreciation and amortization, impairments of depreciable assets, and adjustments for unconsolidated joint ventures. Our calculation of diluted FFO also assumes conversion of all potentially dilutive securities, including certain non-controlling interests, which are convertible into common shares. We consider FFO to be an appropriate supplemental measure of operating performance because, by excluding gains or losses on dispositions of operating properties, and depreciation, FFO can assist in the comparison of the operating performance of a company’s real estate investments between periods or to different companies. A reconciliation of net income attributable to common shareholders to FFO is provided below:
Adjusted FFO
In addition to FFO, we compute Adjusted FFO ("AFFO") as a supplemental measure of operating performance. AFFO is calculated utilizing FFO less recurring capital expenditures which are necessary to help preserve the value of and maintain the functionality at our communities. Our definition of recurring capital expenditures may differ from other REITs, and there can be no assurance our basis for computing this measure is comparable to other REITs. A reconciliation of FFO to AFFO is provided below:
|
| | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2017 | 2016 | | 2017 | 2016 |
| Net income attributable to common shareholders |
| $34,384 |
|
| $290,898 |
| |
| $108,433 |
|
| $778,930 |
|
| Real estate depreciation and amortization | 65,489 |
| 61,264 |
| | 191,092 |
| 182,694 |
|
| Real estate depreciation from discontinued operations | — |
| — |
| | — |
| 4,327 |
|
| Adjustments for unconsolidated joint ventures | 2,223 |
| 2,266 |
| | 6,650 |
| 6,944 |
|
| Income allocated to non-controlling interests | 1,091 |
| 12,523 |
| | 3,345 |
| 17,216 |
|
| Gain on sale of operating properties, net of tax | — |
| (262,719 | ) | | — |
| (294,954 | ) |
| Gain on sale of discontinued operations, net of tax | — |
| — |
| | — |
| (375,237 | ) |
| Funds from operations |
| $103,187 |
|
| $104,232 |
| |
| $309,520 |
|
| $319,920 |
|
| | | | | | |
| Less: recurring capitalized expenditures | (17,506 | ) | (19,246 | ) | | (43,975 | ) | (43,609 | ) |
| | | | | | |
| Adjusted funds from operations |
| $85,681 |
|
| $84,986 |
| |
| $265,545 |
|
| $276,311 |
|
| | | | | | |
| Weighted average number of common shares outstanding: | | | | | |
| EPS diluted | 92,033 |
| 90,012 |
| | 91,345 |
| 89,858 |
|
| FFO/AFFO diluted | 93,111 |
| 91,901 |
| | 92,424 |
| 91,749 |
|
| | | | | | |
| Total earnings per common share - diluted |
| $0.38 |
|
| $3.21 |
| |
| $1.20 |
|
| $8.60 |
|
| FFO per common share - diluted |
| $1.11 |
|
| $1.13 |
| |
| $3.35 |
|
| $3.49 |
|
| AFFO per common share - diluted |
| $0.92 |
|
| $0.92 |
| |
| $2.87 |
|
| $3.01 |
|
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 earnings per common share (EPS). Guidance excludes gains, if any, on properties not currently held for sale due to the uncertain timing and extent of property dispositions and the resulting gains/losses on sales. A reconciliation of the ranges provided for diluted EPS to expected FFO per diluted share is provided below:
|
| | | | | | | | | | | | | |
| | 4Q17 |
| Range | | 2017 |
| Range |
| | Low | High | | Low | High |
| Expected earnings per common share - diluted |
| $0.47 |
|
| $0.51 |
| |
| $1.66 |
|
| $1.70 |
|
| Expected real estate depreciation and amortization | 0.66 |
| 0.66 |
| | 2.73 |
| 2.73 |
|
| Expected adjustments for unconsolidated joint ventures | 0.02 |
| 0.02 |
| | 0.09 |
| 0.09 |
|
| Expected income allocated to non-controlling interests | 0.01 |
| 0.01 |
| | 0.03 |
| 0.03 |
|
| Expected FFO per share - diluted |
| $1.16 |
|
| $1.20 |
| |
| $4.51 |
|
| $4.55 |
|
Note: This table contains forward-looking statements. Please see the paragraph regarding forward-looking statements presented 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. NOI is further detailed in the Components of Property NOI schedules on page 11. 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 September 30, | | Nine months ended September 30, |
| | 2017 | 2016 | | 2017 | 2016 |
| Net income |
| $35,475 |
|
| $303,421 |
| |
| $111,778 |
|
| $796,146 |
|
| Less: Fee and asset management income | (2,116 | ) | (1,667 | ) | | (5,806 | ) | (5,223 | ) |
| Less: Interest and other income | (385 | ) | (927 | ) | | (1,579 | ) | (1,366 | ) |
| Less: Income on deferred compensation plans | (3,648 | ) | (3,494 | ) | | (11,706 | ) | (4,781 | ) |
| Plus: Property management expense | 6,201 |
| 5,590 |
| | 19,782 |
| 19,147 |
|
| Plus: Fee and asset management expense | 973 |
| 911 |
| | 2,818 |
| 2,861 |
|
| Plus: General and administrative expense | 12,266 |
| 10,810 |
| | 37,585 |
| 34,836 |
|
| Plus: Interest expense | 21,210 |
| 23,076 |
| | 66,132 |
| 69,936 |
|
| Plus: Depreciation and amortization expense | 67,014 |
| 62,832 |
| | 195,781 |
| 187,379 |
|
| Plus: Expense on deferred compensation plans | 3,648 |
| 3,494 |
| | 11,706 |
| 4,781 |
|
| Plus: Loss on Early Retirement of Debt | — |
| — |
| | 323 |
| — |
|
| Less: Gain on sale of operating properties, including land | — |
| (262,719 | ) | | — |
| (295,397 | ) |
| Less: Equity in income of joint ventures | (1,255 | ) | (1,866 | ) | | (4,857 | ) | (5,052 | ) |
| Plus: Income tax expense | 512 |
| 400 |
| | 1,008 |
| 1,204 |
|
| Less: Income from discontinued operations | — |
| — |
| | — |
| (7,605 | ) |
| Less: Gain on sale of discontinued operations, net of tax | — |
| — |
| | — |
| (375,237 | ) |
| Net Operating Income (NOI) |
| $139,895 |
|
| $139,861 |
| |
| $422,965 |
|
| $421,629 |
|
| | | | | | |
| "Same Property" Communities |
| $127,894 |
|
| $125,738 |
| |
| $381,074 |
|
| $371,788 |
|
| Non-"Same Property" Communities | 12,855 |
| 9,532 |
| | 39,659 |
| 26,661 |
|
| Development and Lease-Up Communities | 2,166 |
| 4 |
| | 3,248 |
| 4 |
|
| Hurricane Expenses | (3,944 | ) | — |
| | (3,944 | ) | — |
|
| Dispositions/Other | 924 |
| 4,587 |
| | 2,928 |
| 23,176 |
|
| Net Operating Income (NOI) |
| $139,895 |
|
| $139,861 |
| |
| $422,965 |
|
| $421,629 |
|
Adjusted EBITDA
Adjusted 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, gain on acquisition of controlling interest in joint ventures, gain on sale of operating properties including land, net of tax, loss on early retirement of debt and income (loss) allocated to non-controlling interests. The Company considers Adjusted 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 Adjusted EBITDA is provided below:
|
| | | | | | | | | | | | | |
| | Three months ended September 30, | | Nine months ended September 30, |
| | 2017 | 2016 | | 2017 | 2016 |
| Net income attributable to common shareholders |
| $34,384 |
|
| $290,898 |
| |
| $108,433 |
|
| $778,930 |
|
| Plus: Interest expense | 21,210 |
| 23,076 |
| | 66,132 |
| 69,936 |
|
| Plus: Depreciation and amortization expense | 67,014 |
| 62,832 |
| | 195,781 |
| 187,379 |
|
| Plus: Income allocated to non-controlling interests from continuing operations | 1,091 |
| 12,523 |
| | 3,345 |
| 17,216 |
|
| Plus: Income tax expense | 512 |
| 400 |
| | 1,008 |
| 1,204 |
|
| Plus: Real estate depreciation from discontinued operations | — |
| — |
| | — |
| 4,327 |
|
| Less: Gain on sale of operating properties, including land | — |
| (262,719 | ) | | — |
| (295,397 | ) |
| Plus: Loss on Early Retirement of Debt | — |
| — |
| | 323 |
| — |
|
| Less: Equity in income of joint ventures | (1,255 | ) | (1,866 | ) | | (4,857 | ) | (5,052 | ) |
| Less: Gain on sale of discontinued operations, net of tax | — |
| — |
| | — |
| (375,237 | ) |
| Adjusted EBITDA |
| $122,956 |
|
| $125,144 |
| |
| $370,165 |
|
| $383,306 |
|
