EXHIBIT 99.1
Camden Property Trust Announces Fourth Quarter
and Full Year 2007 Operating Results
HOUSTON--(BUSINESS WIRE)--Camden Property Trust (NYSE:CPT) announced that its funds from operations (“FFO”) for the fourth quarter of 2007 totaled $0.94 per diluted share or $57.1 million, as compared to $0.87 per diluted share or $54.7 million for the same period in 2006.
FFO for the twelve months ended December 31, 2007 totaled $3.66 per diluted share or $227.2 million, as compared to $3.88 per diluted share or $237.8 million for the same period in 2006. FFO for the twelve months ended December 31, 2006 included a $0.43 per diluted share impact from gain on sale of land.
Net Income (“EPS”)
The Company reported net income (“EPS”) of $81.0 million or $1.41 per diluted share for the fourth quarter of 2007, as compared to $31.4 million or $0.53 per diluted share for the same period in 2006. EPS for the three months ended December 31, 2007 included a $1.17 per diluted share impact from gain on sale of land and discontinued operations, net of minority interest. EPS for the three months ended December 31, 2006 included a $0.31 per diluted share impact from gain on sale of land and discontinued operations, net of minority interest.
For the twelve months ended December 31, 2007, net income totaled $148.5 million or $2.51 per diluted share, as compared to $232.8 million or $3.96 per diluted share for the same period in 2006. EPS for the twelve months ended December 31, 2007 included a $1.58 per diluted share impact from gain on sale of land and discontinued operations, net of minority interest. EPS for the twelve months ended December 31, 2006 included a $3.16 per diluted share impact from gain on sale of land, operating properties, joint venture properties and discontinued operations, net of minority interest.
A reconciliation of net income to FFO is included in the financial tables accompanying this press release.
Same-Property Results
For the 42,089 apartment homes included in consolidated same-property results, fourth quarter 2007 same-property net operating income (“NOI”) increased 5.0% compared to the fourth quarter of 2006, with revenues increasing 2.4% and expenses declining 1.7%. On a sequential basis, fourth quarter 2007 same-property NOI increased 3.4% compared to the third quarter of 2007, with revenues declining 1.4% and expenses declining 8.9% compared to the prior quarter. On a full-year basis, 2007 same-property NOI increased 5.1%, with revenue growth of 4.1% and expense growth of 2.4% compared to the same period in 2006. Same-property physical occupancy levels for the combined portfolio averaged 93.6% during the fourth quarter of 2007, compared to 94.1% in the fourth quarter of 2006 and 94.5% in the third quarter of 2007.
The Company defines same-property communities as communities owned and stabilized as of January 1, 2006, excluding properties held for sale and communities under redevelopment. 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.
Development Activity
As of December 31, 2007, Camden had four wholly-owned apartment communities which were completed and in lease-up: Camden Old Creek in San Marcos, CA, a $92.1 million project that is currently 89% leased; Camden Royal Oaks in Houston, TX, a $21.0 million project that is currently 77% leased; Camden Monument Place in Fairfax, VA, a $62.2 million project that is currently 72% leased; and Camden City Centre in Houston, TX, a $51.1 million project that is currently 58% leased. The Company also had one joint venture community which was completed and in lease-up: Camden Plaza in Houston, TX, a $40.7 million project that is currently 59% leased.
The Company has four additional communities currently under construction and in lease-up: Camden Potomac Yard in Arlington, VA, a $110.0 million project that is currently 20% leased; Camden Summerfield in Landover, MD, a $68.0 million project that is currently 19% leased; Camden College Park in College Park, MD, a $139.9 million joint venture project that is currently 18% leased; and Camden Main & Jamboree in Irvine, CA, a $112.0 million joint venture project that is currently 10% leased.
Camden’s current development pipeline under construction includes seven wholly-owned communities comprising 2,126 apartment homes with a total budgeted cost of $401.0 million.
The Company also has four joint venture communities under construction comprising 1,257 apartment homes with a total budgeted cost of $333.7 million.
Camden’s future development pipeline currently consists of 18 potential developments comprising 5,840 apartment homes and a total estimated cost of $1.5 billion. The future pipeline represents projects in the early phase of the development process for which Camden either owns the land, has an option to acquire the land or enter into a leasehold interest, or is the buyer under a long-term conditional contract.
Disposition Activity
During the quarter, the Company disposed of seven communities consisting of 2,124 apartment homes which were previously held for sale: Camden Ridge, a 208-home apartment community in Fort Worth, TX; Camden Terrace, a 340-home apartment community in Fort Worth, TX; Camden Glen, a 304-home apartment community in Greensboro, NC; Camden Wendover, a 216-home apartment community in Greensboro, NC; Camden Eastchase, a 220-home apartment community in Charlotte, NC; Camden Timber Creek, a 352-home apartment community in Charlotte, NC; and Camden Isles, a 484-home apartment community in Tampa, FL. The seven communities were sold for a total of $120.5 million, resulting in a gain on sale of $75.3 million.
Camden also completed the sale of 0.9 acres of undeveloped land in Miami, FL during the quarter for $6.1 million, resulting in a gain on sale of $0.7 million.
Properties and Land Held for Sale
At December 31, 2007, Camden had two operating communities consisting of 319 apartment homes held for sale: Camden Ridgeview, a 167-home apartment community in Austin, TX; and Camden Pinnacle, a 224-home apartment community in Denver, CO.
The Company also had 4.6 acres of undeveloped land in Boca Raton, FL and Dallas, TX classified as held for sale at quarter-end.
Stock Repurchase
During the fourth quarter of 2007, Camden repurchased 2,276,500 common shares at an average price per share of $50.50, for a total of $115.0 million. Subsequent to quarter-end, the Company repurchased an additional 690,400 common shares at an average price per share of $43.41, for a total of $30.0 million. The Company completed a total of $230.1 million of common share repurchases during 2007 and early 2008.
On January 30, 2008, Camden’s Board of Trust Managers approved the repurchase of up to an additional $250.0 million of its common shares.
Earnings Guidance
Camden provided initial earnings guidance for 2008 based on its current and expected views of the apartment market and general economic conditions. Full-year 2008 FFO is expected to be $3.60 to $3.80 per diluted share, and full-year 2008 EPS is expected to be $0.44 to $0.66 per diluted share. First quarter 2008 earnings guidance is $0.87 to $0.91 per diluted share for FFO and $0.08 to $0.12 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 initial 2008 earnings guidance is based on projections of same-property NOI growth between 2.25% and 3.25%, acquisitions of $200 -$400 million, dispositions of $175 - $380 million and new development starts of $200 -$500 million. Additional information on the Company’s 2008 financial outlook and a reconciliation of expected net income to expected FFO are included in the financial tables accompanying this press release.
Conference Call
The Company will hold a conference call on Friday, February 8, 2008 at 10:00 a.m. Central Time to review its fourth quarter and full-year 2007 results and discuss its outlook for future performance. To participate in the call, please dial (800) 860-2442 (domestic) or (412) 858-4600 (international) by 9:50 a.m. Central Time and request the Camden Property Trust Fourth Quarter 2007 Earnings Call, 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 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 is a real estate company engaged in the ownership, development, acquisition, management and disposition of multifamily apartment communities. Camden owns interests in and operates 182 properties containing 63,085 apartment homes across the United States. Upon completion of 11 properties under development, the Company’s portfolio will increase to 66,468 apartment homes in 193 properties.
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 | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | |||||||||||||||
OPERATING DATA | 2007 | 2006 | 2007 | 2006 | ||||||||||||
Property revenues | ||||||||||||||||
Rental revenues | $ | 137,586 | $ | 131,505 | $ | 543,475 | $ | 527,554 | ||||||||
Other property revenues | 17,103 | 13,469 | 65,605 | 53,022 | ||||||||||||
Total property revenues | 154,689 | 144,974 | 609,080 | 580,576 | ||||||||||||
Property expenses | ||||||||||||||||
Property operating and maintenance | 40,755 | 39,842 | 162,639 | 158,624 | ||||||||||||
Real estate taxes | 14,931 | 14,132 | 64,667 | 61,539 | ||||||||||||
Total property expenses | 55,686 | 53,974 | 227,306 | 220,163 | ||||||||||||
Non-property income | ||||||||||||||||
Fee and asset management income | 1,722 | 3,011 | 8,293 | 14,041 | ||||||||||||
Sale of technology investments | - | - | 623 | 1,602 | ||||||||||||
Interest and other income | 4,047 | 3,674 | 8,804 | 9,771 | ||||||||||||
Income on deferred compensation plans | (1,120 | ) | 5,808 | 7,282 | 10,116 | |||||||||||
Total non-property income | 4,649 | 12,493 | 25,002 | 35,530 | ||||||||||||
Other expenses | ||||||||||||||||
Property management | 4,437 | 4,669 | 18,413 | 18,490 | ||||||||||||
Fee and asset management | 1,150 | 1,089 | 4,552 | 9,382 | ||||||||||||
General and administrative | 8,514 | 12,285 | 32,590 | 37,584 | ||||||||||||
Interest | 31,475 | 26,633 | 116,281 | 117,862 | ||||||||||||
Depreciation and amortization | 41,355 | 39,328 | 162,189 | 153,609 | ||||||||||||
Amortization of deferred financing costs | 957 | 916 | 3,689 | 3,807 | ||||||||||||
Expense on deferred compensation plans | (1,120 | ) | 5,808 | 7,282 | 10,116 | |||||||||||
Total other expenses | 86,768 | 90,728 | 344,996 | 350,850 | ||||||||||||
Income from continuing operations before gain on sale of properties, impairment loss on land, equity in income of joint ventures, minority interests and income taxes | 16,884 | 12,765 | 61,780 | 45,093 | ||||||||||||
Gain (loss) on sale of properties, including land | - | (104 | ) | - | 97,452 | |||||||||||
Impairment loss on land | (1,447 | ) | - | (1,447 | ) | - | ||||||||||
Equity in income of joint ventures | 454 | 642 | 1,526 | 5,156 | ||||||||||||
Minority interests | ||||||||||||||||
Distributions on perpetual preferred units | (1,750 | ) | (1,750 | ) | (7,000 | ) | (7,000 | ) | ||||||||
Income allocated to common units and other minority interests | (1,374 | ) | (1,308 | ) | (4,729 | ) | (15,685 | ) | ||||||||
Income from continuing operations before income taxes | 12,767 | 10,245 | 50,130 | 125,016 | ||||||||||||
Income tax expense | (478 | ) | - | (1,868 | ) | - | ||||||||||
Income tax expense on sale of depreciable operating properties | - | - | (1,184 | ) | - | |||||||||||
Income from continuing operations | 12,289 | 10,245 | 47,078 | 125,016 | ||||||||||||
Income from discontinued operations | 1,133 | 2,493 | 7,857 | 10,864 | ||||||||||||
Gain on sale of discontinued operations, including land | 76,063 | 18,879 | 107,039 | 99,273 | ||||||||||||
Income from discontinued operations allocated to common units | (8,509 | ) | (253 | ) | (13,517 | ) | (2,307 | ) | ||||||||
Net income | $ | 80,976 | $ | 31,364 | $ | 148,457 | $ | 232,846 | ||||||||
PER SHARE DATA | ||||||||||||||||
Net income - basic | $ | 1.43 | $ | 0.54 | $ | 2.55 | $ | 4.11 | ||||||||
Net income - diluted | 1.41 | 0.53 | 2.51 | 3.96 | ||||||||||||
Income from continuing operations - basic | 0.22 | 0.18 | 0.81 | 2.21 | ||||||||||||
Income from continuing operations - diluted | 0.21 | 0.17 | 0.80 | 2.14 | ||||||||||||
Weighted average number of common and common equivalent shares outstanding: | ||||||||||||||||
Basic | 56,782 | 58,432 | 58,135 | 56,660 | ||||||||||||
Diluted | 57,613 | 59,738 | 59,125 | 59,524 | ||||||||||||
PROPERTY DATA | ||||||||||||||||
Total operating properties (end of period) (a) | 182 | 186 | 182 | 186 | ||||||||||||
Total operating apartment homes in operating properties (end of period) (a) | 63,085 | 63,843 | 63,085 | 63,843 | ||||||||||||
Total operating apartment homes (weighted average) | 52,542 | 53,530 | 53,132 | 55,850 | ||||||||||||
Total operating apartment homes - excluding discontinued operations (weighted average) | 51,192 | 49,393 | 50,504 | 50,872 | ||||||||||||
(a) 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 | FUNDS FROM OPERATIONS | |||||||||||||||||
(In thousands, except per share and property data amounts) | ||||||||||||||||||
(Unaudited) | Three Months Ended | Twelve Months Ended | ||||||||||||||||
December 31, | December 31, | |||||||||||||||||
FUNDS FROM OPERATIONS | 2007 | 2006 | 2007 | 2006 | ||||||||||||||
Net income | $ | 80,976 | $ | 31,364 | $ | 148,457 | $ | 232,846 | ||||||||||
Real estate depreciation and amortization from continuing operations | 40,534 | 38,682 | 159,031 | 150,982 | ||||||||||||||
Real estate depreciation from discontinued operations | - | 1,237 | 2,033 | 6,251 | ||||||||||||||
Adjustments for unconsolidated joint ventures | 982 | 1,021 | 4,934 | 3,326 | ||||||||||||||
Income from continuing operations allocated to common units | 1,444 | 1,004 | 4,279 | 15,230 | ||||||||||||||
Income from discontinued operations allocated to common units | 8,509 | 253 | 13,517 | 2,307 | ||||||||||||||
Income tax expense on sale of depreciable operating properties | - | - | 1,184 | - | ||||||||||||||
(Gain) loss on sale of operating properties | - | 100 | - | (91,481 | ) | |||||||||||||
(Gain) on sale of discontinued operations | (75,306 | ) | (18,937 | ) | (106,282 | ) | (78,823 | ) | ||||||||||
(Gain) on sale of joint venture properties | - | - | - | (2,848 | ) | |||||||||||||
Funds from operations - diluted | $ | 57,139 | $ | 54,724 | $ | 227,153 | $ | 237,790 | ||||||||||
PER SHARE DATA | ||||||||||||||||||
Funds from operations - diluted | $ | 0.94 | $ | 0.87 | $ | 3.66 | $ | 3.88 | ||||||||||
Cash distributions | 0.69 | 0.66 | 2.76 | 2.64 | ||||||||||||||
Weighted average number of common and common equivalent shares outstanding: | ||||||||||||||||||
FFO - diluted | 60,597 | 62,994 | 62,120 | 61,253 | ||||||||||||||
PROPERTY DATA | ||||||||||||||||||
Total operating properties (end of period) (a) | 182 | 186 | 182 | 186 | ||||||||||||||
Total operating apartment homes in operating properties (end of period) (a) | 63,085 | 63,843 | 63,085 | 63,843 | ||||||||||||||
Total operating apartment homes (weighted average) | 52,542 | 53,530 | 53,132 | 55,850 | ||||||||||||||
Total operating apartment homes - excluding discontinued operations (weighted average) | 51,192 | 49,393 | 50,504 | 50,872 | ||||||||||||||
(a) 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) | Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | ||||||||||||||||||
2007 | 2007 | 2007 | 2007 | 2006 | |||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Real estate assets, at cost | |||||||||||||||||||||||
Land | $ | 730,548 | $ | 714,044 | $ | 713,084 | $ | 703,850 | $ | 693,312 | |||||||||||||
Buildings and improvements | 4,316,472 | 4,215,662 | 4,144,075 | 4,108,955 | 4,036,286 | ||||||||||||||||||
5,047,020 | 4,929,706 | 4,857,159 | 4,812,805 | 4,729,598 | |||||||||||||||||||
Accumulated depreciation | (868,074 | ) | (827,944 | ) | (788,318 | ) | (799,624 | ) | (762,011 | ) | |||||||||||||
Net operating real estate assets | 4,178,946 | 4,101,762 | 4,068,841 | 4,013,181 | 3,967,587 | ||||||||||||||||||
Properties under development, including land | 446,664 | 488,620 | 454,617 | 410,002 | 369,861 | ||||||||||||||||||
Investments in joint ventures | 8,466 | 12,243 | 12,722 | 8,321 | 9,245 | ||||||||||||||||||
Properties held for sale, including land | 25,253 | 73,325 | 72,577 | 32,879 | 32,763 | ||||||||||||||||||
Total real estate assets | 4,659,329 | 4,675,950 | 4,608,757 | 4,464,383 | 4,379,456 | ||||||||||||||||||
Accounts receivable - affiliates | 35,940 | 36,171 | 35,341 | 34,854 | 34,170 | ||||||||||||||||||
Notes receivable | |||||||||||||||||||||||
Affiliates | 50,358 | 48,172 | 45,560 | 43,507 | 41,478 | ||||||||||||||||||
Other | 11,565 | 11,565 | 11,565 | 11,565 | 3,855 | ||||||||||||||||||
Other assets, net (a) | 126,996 | 129,810 | 136,524 | 118,329 | 121,336 | ||||||||||||||||||
Cash and cash equivalents | 897 | 1,207 | 3,058 | 1,470 | 1,034 |
| |||||||||||||||||
Restricted cash | 5,675 | 5,904 | 20,053 | 5,772 | 4,721 |
| |||||||||||||||||
Total assets | $ | 4,890,760 | $ | 4,908,779 | $ | 4,860,858 | $ | 4,679,880 | $ | 4,586,050 |
| ||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Notes payable | |||||||||||||||||||||||
Unsecured | $ | 2,265,319 | $ | 2,198,628 | $ | 2,065,175 | $ | 1,897,865 | $ | 1,759,498 | |||||||||||||
Secured | 562,776 | 565,564 | 566,001 | 568,731 | 571,478 | ||||||||||||||||||
Accounts payable and accrued expenses | 107,403 | 110,643 | 128,892 | 110,486 | 124,834 | ||||||||||||||||||
Accrued real estate taxes | 24,943 | 42,151 | 29,785 | 16,036 | 23,306 | ||||||||||||||||||
Other liabilities (b) | 136,365 | 117,317 | 115,547 | 110,684 | 105,999 | ||||||||||||||||||
Distributions payable | 42,689 | 44,180 | 44,982 | 45,137 | 43,068 | ||||||||||||||||||
Total liabilities | 3,139,495 | 3,078,483 | 2,950,382 | 2,748,939 | 2,628,183 | ||||||||||||||||||
Commitments and contingencies | |||||||||||||||||||||||
Minority interests | |||||||||||||||||||||||
Perpetual preferred units | 97,925 | 97,925 | 97,925 | 97,925 | 97,925 | ||||||||||||||||||
Common units | 111,624 | 104,176 | 105,353 | 102,217 | 115,280 | ||||||||||||||||||
Other minority interests | 10,403 | 10,740 | 10,916 | 10,335 | 10,306 | ||||||||||||||||||
Total minority interests | 219,952 | 212,841 | 214,194 | 210,477 | 223,511 | ||||||||||||||||||
Shareholders' equity | |||||||||||||||||||||||
Common shares of beneficial interest | 654 | 654 | 654 | 654 | 650 | ||||||||||||||||||
Additional paid-in capital | 2,209,631 | 2,207,333 | 2,204,525 | 2,199,713 | 2,183,622 | ||||||||||||||||||
Distributions in excess of net income | (227,025 | ) | (269,667 | ) | (241,711 | ) | (243,786 | ) | (213,665 | ) | |||||||||||||
Employee notes receivable | (1,950 | ) | (1,963 | ) | (1,976 | ) | (2,025 | ) | (2,036 | ) | |||||||||||||
Treasury shares, at cost | (433,874 | ) | (318,902 | ) | (265,210 | ) | (234,092 | ) | (234,215 | ) | |||||||||||||
Other comprehensive income (c) | (16,123 | ) | - | - | - | - | |||||||||||||||||
Total shareholders' equity | 1,531,313 | 1,617,455 | 1,696,282 | 1,720,464 | 1,734,356 | ||||||||||||||||||
Total liabilities and shareholders' equity | $ | 4,890,760 | $ | 4,908,779 | $ | 4,860,858 | $ | 4,679,880 | $ | 4,586,050 | |||||||||||||
(a) includes: | |||||||||||||||||||||||
net deferred charges of: | $ | 10,811 | $ | 10,308 | $ | 11,565 | $ | 9,724 | $ | 10,295 | |||||||||||||
value of in place leases of: | $ | 258 | $ | 703 | $ | 1,091 | $ | 61 | $ | 242 | |||||||||||||
(b) includes: | |||||||||||||||||||||||
deferred revenues of: | $ | 2,459 | $ | 2,738 | $ | 2,937 | $ | 3,321 | $ | 3,875 | |||||||||||||
above/below market leases of: | ($13 | ) | $ | 25 | $ | 43 | $ | 8 | $ | 32 | |||||||||||||
distributions in excess of investments in joint ventures of: | $ | 23,653 | $ | 20,867 | $ | 19,549 | $ | 18,805 | $ | 18,350 | |||||||||||||
fair value adjustment of derivative instrument: | $ | 16,123 | - | - | - | - | |||||||||||||||||
(c) Represents the fair value adjustment of the derivative instrument. |
CAMDEN | 2008 Financial Outlook | ||
as of February 7, 2008 | |||
(Unaudited) | |||
2008 Financial Outlook | |||
Earnings Guidance - Per Diluted Share | |||
Expected net income per share - diluted | $0.44 to $0.64 | ||
Expected difference between EPS and fully diluted FFO shares | ($0.02) | ||
Expected real estate depreciation | $2.94 | ||
Expected adjustments for unconsolidated joint ventures | $0.13 | ||
Expected income allocated to common units | $0.11 | ||
Expected FFO per share - diluted | $3.60 to $3.80 | ||
"Same Property" Communities | |||
Number of Units | 43,528 | ||
2007 Base Net Operating Income | $324 million | ||
Total Revenue Growth | 3.50% to 4.50% | ||
Revenue Growth excluding revenue attributable to ancillary income initiatives (a) | 2.00% to 3.00% | ||
Total Expense Growth | 5.50% to 6.75% | ||
Expense Growth excluding expenses related to ancillary income initiatives (b) | 2.50% to 3.75% | ||
Net Operating Income Growth | 2.25% to 3.25% | ||
Physical Occupancy | 94.6% | ||
∙ Impact from 1.0% change in NOI Growth is approximately $0.05 / share | |||
Repositioning Communities | |||
Number of Units | 3,512 | ||
2007 Base Net Operating Income | $23 million | ||
Capital Investment to Date | $31 million | ||
Total Expected Capital Investment | $39 million | ||
2008 Net Operating Income Growth | 8.50% to 9.00% | ||
Acquisitions/Dispositions | |||
Dispositions (Communities Held for Sale at 12/31/07) | $25 to $30 million | ||
Future Dispositions Volume | $150 to $350 million | ||
Future Acquisitions Volume (consolidated on balance sheet) | $0 million | ||
Future Acquisitions Volume (joint venture) | $200 to $400 million | ||
Development | |||
Development Starts (consolidated on balance sheet) | $0 to $100 million | ||
Development Starts (joint venture) | $200 to $400 million | ||
2008 Projected Development FFO Dilution | $13 to $15 million | ||
2008 Incremental Development FFO Dilution vs. 2007 | $6 to $8 million | ||
Non-Property Income | |||
Non-Property Income, Net | $10 to $14 million | ||
Includes: Fee and asset management income, net of expenses and | |||
Interest and other income | |||
Corporate Expenses | |||
General and Administrative and Property Management Expense | $50 to $54 million | ||
Debt | |||
Capitalized Interest | $16 to $18 million | ||
Expensed Interest | $130 to $134 million | ||
LIBOR (average) | 3.30% | ||
Note: Please refer to the following pages for definitions and reconciliations of all non-GAAP financial measures presented in this document. | |||
(a) excludes revenue earned from Perfect Connection (Camden's bulk cable program), Valet Waste (Camden's door to door trash collection program), and RUBS. | |||
(b) excludes expenses associated with Perfect Connection (Camden's bulk cable program), Valet Waste (Camden's door to door trash collection program), and Utilities. | |||
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) | ||||||||||||||||||
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 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 to FFO is provided below: | ||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||
December 31, | December 31, | |||||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||||
Net income | $ | 80,976 | $ | 31,364 | $ | 148,457 | $ | 232,846 | ||||||||||
Real estate depreciation and amortization from continuing operations | 40,534 | 38,682 | 159,031 | 150,982 | ||||||||||||||
Real estate depreciation from discontinued operations | - | 1,237 | 2,033 | 6,251 | ||||||||||||||
Adjustments for unconsolidated joint ventures | 982 | 1,021 | 4,934 | 3,326 | ||||||||||||||
Income from continuing operations allocated to common units | 1,444 | 1,004 | 4,279 | 15,230 | ||||||||||||||
Income from discontinued operations allocated to common units | 8,509 | 253 | 13,517 | 2,307 | ||||||||||||||
Income tax expense on sale of depreciable operating properties | - | - | 1,184 | - | ||||||||||||||
(Gain) loss on sale of operating properties | - | 100 | - | (91,481 | ) | |||||||||||||
(Gain) on sale of discontinued operations | (75,306 | ) | (18,937 | ) | (106,282 | ) | (78,823 | ) | ||||||||||
(Gain) on sale of joint venture properties | - | - | - | (2,848 | ) | |||||||||||||
Funds from operations - diluted | $ | 57,139 | $ | 54,724 | $ | 227,153 | $ | 237,790 | ||||||||||
Weighted average number of common and common equivalent shares outstanding: | ||||||||||||||||||
EPS diluted | 57,613 | 59,738 | 59,125 | 59,524 | ||||||||||||||
FFO diluted | 60,597 | 62,994 | 62,120 | 61,253 | ||||||||||||||
Net income per common share - diluted | $ | 1.41 | $ | 0.53 | $ | 2.51 | $ | 3.96 | ||||||||||
FFO per common share - diluted | $ | 0.94 | $ | 0.87 | $ | 3.66 | $ | 3.88 | ||||||||||
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: | ||||||||||||||||||
1Q08 Range | 2008 Range | |||||||||||||||||
Low | High | Low | High | |||||||||||||||
Expected net income per share - diluted | $ | 0.08 | $ | 0.12 | $ | 0.44 | $ | 0.64 | ||||||||||
Expected difference between EPS and fully diluted FFO shares | 0.00 | 0.00 | (0.02 | ) | (0.02 | ) | ||||||||||||
Expected real estate depreciation | 0.73 | 0.73 | 2.94 | 2.94 | ||||||||||||||
Expected adjustments for unconsolidated joint ventures | 0.04 | 0.04 | 0.13 | 0.13 | ||||||||||||||
Expected income allocated to common units | 0.02 | 0.02 | 0.11 | 0.11 | ||||||||||||||
Expected (gain) on sale of properties and properties held for sale | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||
Expected FFO per share - diluted | $ | 0.87 | $ | 0.91 | $ | 3.60 | $ | 3.80 | ||||||||||
Note: This table contains forward-looking statements. Please see the paragraph regarding forward-looking statements earlier in this document. | ||||||||||||||||||
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 | Twelve Months Ended | |||||||||||||||||
December 31, | December 31, | |||||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||||
Net income | $ | 80,976 | $ | 31,364 | $ | 148,457 | $ | 232,846 | ||||||||||
Fee and asset management income | (1,722 | ) | (3,011 | ) | (8,293 | ) | (14,041 | ) | ||||||||||
Sale of technology investments | - | - | (623 | ) | (1,602 | ) | ||||||||||||
Interest and other income | (4,047 | ) | (3,674 | ) | (8,804 | ) | (9,771 | ) | ||||||||||
Income on deferred compensation plans | 1,120 | (5,808 | ) | (7,282 | ) | (10,116 | ) | |||||||||||
Property management expense | 4,437 | 4,669 | 18,413 | 18,490 | ||||||||||||||
Fee and asset management expense | 1,150 | 1,089 | 4,552 | 9,382 | ||||||||||||||
General and administrative expense | 8,514 | 12,285 | 32,590 | 37,584 | ||||||||||||||
Interest expense | 31,475 | 26,633 | 116,281 | 117,862 | ||||||||||||||
Depreciation and amortization | 41,355 | 39,328 | 162,189 | 153,609 | ||||||||||||||
Amortization of deferred financing costs | 957 | 916 | 3,689 | 3,807 | ||||||||||||||
Expense on deferred compensation plans | (1,120 | ) | 5,808 | 7,282 | 10,116 | |||||||||||||
(Gain) loss on sale of properties, including land | - | 104 | - | (97,452 | ) | |||||||||||||
Impairment loss on sale of land | 1,447 | - | 1,447 | - | ||||||||||||||
Equity in income of joint ventures | (454 | ) | (642 | ) | (1,526 | ) | (5,156 | ) | ||||||||||
Distributions on perpetual preferred units | 1,750 | 1,750 | 7,000 | 7,000 | ||||||||||||||
Income allocated to common units and other minority interests | 1,374 | 1,308 | 4,729 | 15,685 | ||||||||||||||
Income tax expense | 478 | - | 1,868 | - | ||||||||||||||
Income tax expense on sale of depreciable operating properties | - | - | 1,184 | - | ||||||||||||||
Income from discontinued operations | (1,133 | ) | (2,493 | ) | (7,857 | ) | (10,864 | ) | ||||||||||
Gain on sale of discontinued operations, including land | (76,063 | ) | (18,879 | ) | (107,039 | ) | (99,273 | ) | ||||||||||
Income from discontinued operations allocated to common units | 8,509 | 253 | 13,517 | 2,307 | ||||||||||||||
Net Operating Income (NOI) | $ | 99,003 | $ | 91,000 | $ | 381,774 | $ | 360,413 | ||||||||||
"Same Property" Communities | $ | 79,843 | $ | 76,075 | $ | 314,631 | $ | 299,443 | ||||||||||
Non-"Same Property" Communities | 10,615 | 8,217 | 37,572 | 23,745 | ||||||||||||||
Development and Lease-Up Communities | 1,663 | 106 | 3,747 | (24 | ) | |||||||||||||
Redevelopment Communities | 5,954 | 6,220 | 23,312 | 24,311 | ||||||||||||||
Dispositions / Other | 928 | 382 | 2,512 | 12,938 | ||||||||||||||
Net Operating Income (NOI) | $ | 99,003 | $ | 91,000 | $ | 381,774 | $ | 360,413 | ||||||||||
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 of joint ventures, gain on sale of real estate assets, and income allocated to minority interests. The Company considers EBITDA to be an appropriate supplemental measure of operating performance to net income 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 to EBITDA is provided below: | ||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||
December 31, | December 31, | |||||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||||
Net income | $ | 80,976 | $ | 31,364 | $ | 148,457 | $ | 232,846 | ||||||||||
Interest expense | 31,591 | 26,752 | 116,753 | 118,344 | ||||||||||||||
Amortization of deferred financing costs including discontinued operations | 957 | 916 | 3,689 | 3,813 | ||||||||||||||
Depreciation and amortization | 41,355 | 39,328 | 162,189 | 153,609 | ||||||||||||||
Distributions on perpetual preferred units | 1,750 | 1,750 | 7,000 | 7,000 | ||||||||||||||
Income allocated to common units and other minority interests | 1,374 | 1,308 | 4,729 | 15,685 | ||||||||||||||
Income tax expense | 478 | - | 1,868 | - | ||||||||||||||
Income tax expense on sale of depreciable operating properties | - | - | 1,184 | - | ||||||||||||||
Real estate depreciation from discontinued operations | - | 1,237 | 2,033 | 6,251 | ||||||||||||||
(Gain) loss on sale of properties, including land | - | 104 | - | (97,452 | ) | |||||||||||||
Impairment loss on land | 1,447 | - | 1,447 | - | ||||||||||||||
Equity in income of joint ventures | (454 | ) | (642 | ) | (1,526 | ) | (5,156 | ) | ||||||||||
Gain on sale of discontinued operations | (76,063 | ) | (18,879 | ) | (107,039 | ) | (99,273 | ) | ||||||||||
Income from discontinued operations allocated to common units | 8,509 | 253 | 13,517 | 2,307 | ||||||||||||||
EBITDA | $ | 91,920 | $ | 83,491 | $ | 354,301 | $ | 337,974 |
CONTACT:
Camden Property Trust, Houston
Kim Callahan, 713-354-2549