Camden Property Trust (CPT) 8-K Camden Property Trust Announces Fourth Quarterand Full Year 2008 Operating Results

EXHIBIT 99.1

Camden Property Trust Announces Fourth Quarterand Full Year 2008 Operating Results

HOUSTON--(BUSINESS WIRE)--February 9, 2009--Camden Property Trust (NYSE:CPT) announced that its funds from operations (“FFO”) for the fourth quarter of 2008 totaled $0.17 per diluted share or $10.1 million, as compared to $0.94 per diluted share or $57.1 million for the same period in 2007. FFO for the three months ended December 31, 2008 included an $0.88 per diluted share impact from impairment losses on land held for development and predevelopment investments, and a $0.15 per diluted share impact from gains on the repurchase of unsecured senior notes.

FFO for the twelve months ended December 31, 2008 totaled $2.90 per diluted share or $169.6 million, as compared to $3.66 per diluted share or $227.2 million for the same period in 2007. FFO for the twelve months ended December 31, 2008 included an $0.88 per diluted share impact from impairment losses on land held for development and predevelopment investments, and a $0.23 per diluted share impact from gains on the repurchase of unsecured senior notes.

Net Income (“EPS”)

The Company reported a net loss of $34.9 million or $0.63 per diluted share for the fourth quarter of 2008, as compared to net income of $81.0 million or $1.41 per diluted share for the same period in 2007. EPS for the three months ended December 31, 2008 included a $0.93 per diluted share impact from impairment losses on land held for development and predevelopment investments, and a $0.16 per diluted share impact from gains on the repurchase of unsecured senior notes. 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.

For the twelve months ended December 31, 2008, net income totaled $71.0 million or $1.28 per diluted share, as compared to $148.5 million or $2.51 per diluted share for the same period in 2007. EPS for the twelve months ended December 31, 2008 included a $1.50 per diluted share impact from gain on sale of properties including discontinued operations, a $0.93 per diluted share impact from impairment losses on land held for development and predevelopment investments, and a $0.25 per diluted share impact from gains on the repurchase of unsecured senior notes. 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.

A reconciliation of net income to FFO is included in the financial tables accompanying this press release.

Same-Property Results

For the 40,340 apartment homes included in consolidated same-property results, fourth quarter 2008 same-property net operating income (“NOI”) declined 2.8% compared to the fourth quarter of 2007, with revenues increasing 1.1% and expenses increasing 8.2%. On a sequential basis, fourth quarter 2008 same-property NOI increased 0.8% compared to the third quarter of 2008, with revenues declining 2.2% and expenses declining 6.7% compared to the prior quarter. On a full-year basis, 2008 same-property NOI declined 0.4%, with revenue growth of 1.5% and expense growth of 4.6% compared to the same period in fiscal year 2007. Same-property physical occupancy levels for the combined portfolio averaged 93.6% during the fourth quarter of 2008, compared to 93.6% in the fourth quarter of 2007 and 94.9% in the third quarter of 2008.

The Company defines same-property communities as communities owned and stabilized as of January 1, 2007, 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

During the fourth quarter, lease-up was completed at Camden Royal Oaks in Houston, TX, a $21.1 million project that is currently 92% leased. In addition, the Company completed construction on two projects during the quarter: Camden Cedar Hills in Austin, TX and Camden Whispering Oaks in Houston, TX. As of December 31, 2008, Camden had five wholly-owned apartment communities which were completed and in lease-up: Camden Potomac Yard in Arlington, VA, a $104.5 million project that is currently 72% leased; Camden Summerfield in Landover, MD, a $62.6 million project that is currently 78% leased; Camden Orange Court in Orlando, FL, a $45.5 million project that is currently 66% leased; Camden Cedar Hills in Austin, TX, a $23.6 million project that is currently 84% leased; and Camden Whispering Oaks in Houston, TX, a $27.3 million project that is currently 80% leased. The Company also had two joint venture communities which were completed and in lease-up: Camden College Park in College Park, MD, a $125.3 million project that is currently 66% leased; and Camden Main & Jamboree in Irvine, CA, a $110.1 million project that is currently 88% leased.

The Company has one wholly-owned community and two joint venture communities currently under construction and in lease-up: Camden Dulles Station in Oak Hill, VA, a $77.0 million wholly-owned project that is currently 52% leased; Camden Amber Oaks in Austin, TX, a $40.0 million joint venture project that is currently 20% leased; and Braeswood Place in Houston, TX, a $48.6 million joint venture project that is currently 5% leased. Camden has two additional joint venture communities currently under construction in Houston, TX: Camden Travis Street, a $39.0 million project, and Belle Meade, a $33.2 million project.

In January 2009, Camden announced a reduction in the number of planned development projects it would undertake, which resulted in a $51.3 million non-cash impairment charge during the fourth quarter of 2008. In addition, the Company announced a reduction in its construction and development staff, which will result in a cash charge of approximately $1.0 million for severance costs during the first quarter of 2009. [See press release dated January 26, 2009 for further details.]

Properties Held for Sale

At December 31, 2008, Camden had one operating community held for sale: Camden West Oaks, a 671-home apartment community in Houston, TX.

Debt & Equity Repurchases

During the fourth quarter, Camden repurchased and retired $137.8 million of senior unsecured notes, resulting in an $8.8 million gain on early retirement of debt. During the twelve months ended December 31, 2008, the Company repurchased and retired a total of $191.0 million of senior unsecured notes, resulting in a $13.6 million gain on early retirement of debt.

During the twelve months ended December 31, 2008, Camden repurchased 694,800 common shares for a total of $30.1 million.

Liquidity

As of December 31, 2008, Camden had $444 million available under its $600 million unsecured revolving Line of Credit. After all extension options, the Line of Credit is scheduled to mature in January 2011. The Company anticipates that it may issue approximately $250 million in new secured or unsecured debt during 2009. Camden has $126 million of debt maturities in 2009 and $348 million of debt maturities in 2010. It is anticipated that these debt maturities will be repaid utilizing a combination of the following sources: the Company’s existing Line of Credit, future debt offerings, retained cash flow from operations and property dispositions.

Earnings Guidance

Camden provided initial earnings guidance for 2009 based on its current and expected views of the apartment market and general economic conditions. Full-year 2009 FFO is expected to be $3.15 to $3.45 per diluted share, and full-year 2009 EPS is expected to be $0.05 to $0.35 per diluted share. First quarter 2009 earnings guidance is $0.80 to $0.84 per diluted share for FFO and $0.02 to $0.06 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 2009 earnings guidance is based on projections of same-property revenue declines between 0.5% and 2.5%, expense growth between 5.0% and 6.25%, and NOI declines between 4.5% and 7.5%. Additional information on the Company’s 2009 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 Tuesday, February 10, 2009 at 10:00 a.m. Central Time to review its fourth quarter and full-year 2008 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 2008 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, an S&P 400 Company, is a real estate company engaged in the ownership, development, acquisition, management and disposition of multifamily apartment communities. Camden owns interests in and operates 181 properties containing 62,903 apartment homes across the United States. Upon completion of five properties under development, the Company’s portfolio will increase to 64,329 apartment homes in 186 properties. Camden was recently named by FORTUNE® Magazine for the second consecutive year as one of the “100 Best Companies to Work For” in America.

For additional information, please contact Camden’s Investor Relations Department at (800) 922-6336 or (713) 354-2787 or access our website at 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	2008			2007			2008			2007
Property revenues
Rental revenues		$137,921			$133,080			$547,718			$525,497
Other property revenues		19,721			16,385			76,298			62,822
Total property revenues		157,642			149,465			624,016			588,319
Property expenses
Property operating and maintenance		41,967			38,858			168,883			155,181
Real estate taxes		16,999			14,322			70,032			62,169
Total property expenses		58,966			53,180			238,915			217,350
Non-property income
Fee and asset management income		2,274			1,722			9,167			8,293
Sale of technology investments		-			-			-			623
Interest and other income		1,077			4,047			4,736			8,804
Income (loss) on deferred compensation plans		(13,713	)		(1,120	)		(33,443	)		7,282
Total non-property income (loss)		(10,362	)		4,649			(19,540	)		25,002
Other expenses
Property management		4,722			4,437			19,910			18,413
Fee and asset management		1,435			1,150			6,054			4,552
General and administrative		7,699			8,514			31,586			32,590
Interest		33,702			31,350			132,399			115,753
Depreciation and amortization		43,300			40,068			171,814			157,297
Amortization of deferred financing costs		837			949			2,958			3,661
Expense (benefit) on deferred compensation plans		(13,713	)		(1,120	)		(33,443	)		7,282
Total other expenses		77,982			85,348			331,278			339,548
Income from continuing operations before gain on sale of properties, gain on early retirement of debt, impairment loss on land, equity in income of joint ventures, minority interests and income taxes		10,332			15,586			34,283			56,423
Gain on sale of properties, including land		-			-			2,929			-
Gain on early retirement of debt		8,828			-			13,566			-
Impairment loss on land		(51,323	)		(1,447	)		(51,323	)		(1,447	)
Equity in income (loss) of joint ventures		(483	)		454			(1,265	)		1,526
Minority interests
Distributions on perpetual preferred units		(1,750	)		(1,750	)		(7,000	)		(7,000	)
Income allocated to common units and other minority interests		(652	)		(1,374	)		(4,052	)		(4,729	)
Income (loss) from continuing operations before income taxes		(35,048	)		11,469			(12,862	)		44,773
Income tax expense		(327	)		(478	)		(843	)		(3,052	)
Income (loss) from continuing operations		(35,375	)		10,991			(13,705	)		41,721
Income from discontinued operations		543			2,431			4,480			13,214
Gain (loss) on sale of discontinued operations		(77	)		76,063			80,198			107,039
Income from discontinued operations allocated to common units		-			(8,509	)		-			(13,517	)
Net income (loss)		($34,909	)		$80,976			$70,973			$148,457
CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME
Net income (loss)		($34,909	)		$80,976			$70,973			$148,457
Other comprehensive income (loss)
Unrealized loss on cash flow hedging activities		(33,667	)		(16,123	)		(35,069	)		(16,123	)
Gain on postretirement obligations		33			-			136			-
Comprehensive income (loss)		($68,543	)		$64,853			$36,040			$132,334
PER SHARE DATA
Net income - basic		($0.63	)		$1.43			$1.28			$2.55
Net income - diluted		(0.63	)		1.41			1.28			2.51
Income from continuing operations - basic		(0.64	)		0.19			(0.25	)		0.72
Income from continuing operations - diluted		(0.64	)		0.19			(0.25	)		0.71
Weighted average number of common and common equivalent shares outstanding:
Basic		55,401			56,782			55,272			58,135
Diluted		55,401			57,613			55,272			59,125
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	2008			2007			2008			2007
Net income (loss)		($34,909	)		$80,976			$70,973			$148,457
Real estate depreciation and amortization from continuing operations		42,403			39,247			168,264			154,140
Real estate depreciation from discontinued operations		-			1,287			2,745			6,924
Adjustments for unconsolidated joint ventures		1,960			982			7,103			4,934
Income from continuing operations allocated to common units		573			1,444			3,617			4,279
Income from discontinued operations allocated to common units		-			8,509			-			13,517
(Gain) loss on sale of operating properties, net of taxes		-			-			(2,929	)		1,184
(Gain) loss on sale of discontinued operations		77			(75,306	)		(80,188	)		(106,282	)
Funds from operations - diluted		$10,104			$57,139			$169,585			$227,153
PER SHARE DATA
Funds from operations - diluted		$0.17			$0.94			$2.90			$3.66
Cash distributions		0.70			0.69			2.80			2.76
Weighted average number of common and common equivalent shares outstanding:
FFO - diluted		58,398			60,597			58,528			62,120
PROPERTY DATA
Total operating properties (end of period) (a)		181			182			181			182
Total operating apartment homes in operating properties (end of period) (a)		62,903			63,085			62,903			63,085
Total operating apartment homes (weighted average)		50,509			52,542			51,277			53,132
Total operating apartment homes - excluding discontinued operations (weighted average)		49,838			48,520			49,312			47,832
(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,
	2008			2008			2008			2008			2007
ASSETS
Real estate assets, at cost
Land		$744,059			$745,085			$755,200			$749,664			$730,548
Buildings and improvements		4,447,587			4,442,067			4,474,749			4,435,787			4,316,472
		5,191,646			5,187,152			5,229,949			5,185,451			5,047,020
Accumulated depreciation		(981,049	)		(952,883	)		(935,640	)		(907,643	)		(868,074	)
Net operating real estate assets		4,210,597			4,234,269			4,294,309			4,277,808			4,178,946
Properties under development and land		264,188			323,300			333,419			358,994			446,664
Investments in joint ventures		15,106			15,663			14,773			12,526			8,466
Properties held for sale, including land		20,653			9,495			36,152			23,299			25,253
Total real estate assets		4,510,544			4,582,727			4,678,653			4,672,627			4,659,329
Accounts receivable - affiliates		37,000			36,868			36,556			36,166			35,940
Notes receivable
Affiliates		58,109			58,240			53,849			52,331			50,358
Other		8,710			8,710			8,710			8,710			11,565
Other assets, net (a)		103,013			111,847			117,599			116,010			126,996
Cash and cash equivalents		7,407			29,517			1,242			947			897
Restricted cash		5,559			4,971			4,687	��		5,325			5,675
Total assets		$4,730,342			$4,832,880			$4,901,296			$4,892,116			$4,890,760
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Notes payable
Unsecured		$2,103,187			$2,096,285			$2,400,027			$2,351,006			$2,265,319
Secured		729,209			727,235			539,328			559,952			562,776
Accounts payable and accrued expenses		82,575			86,668			77,441			90,779			107,403
Accrued real estate taxes		23,600			40,664			30,664			17,769			24,943
Other liabilities (b)		149,554			124,915			129,471			146,817			136,365
Distributions payable		42,936			42,968			42,965			42,942			42,689
Total liabilities		3,131,061			3,118,735			3,219,896			3,209,265			3,139,495
Commitments and contingencies
Minority interests
Perpetual preferred units		97,925			97,925			97,925			97,925			97,925
Common units		88,075			93,816			96,249			97,416			111,624
Other minority interests		1,787			8,438			8,572			8,537			10,403
Total minority interests		187,787			200,179			202,746			203,878			219,952
Shareholders' equity
Common shares of beneficial interest		660			660			660			660			654
Additional paid-in capital		2,237,703			2,232,436			2,230,119			2,227,256			2,209,631
Distributions in excess of net income		(312,309	)		(238,301	)		(272,294	)		(250,845	)		(227,025	)
Employee notes receivable		(295	)		(298	)		(302	)		(306	)		(1,950	)
Treasury shares, at cost		(463,209	)		(463,108	)		(463,574	)		(463,574	)		(433,874	)
Accumulated other comprehensive loss (c)		(51,056	)		(17,423	)		(15,955	)		(34,218	)		(16,123	)
Total shareholders' equity		1,411,494			1,513,966			1,478,654			1,478,973			1,531,313
Total liabilities and shareholders' equity		$4,730,342			$4,832,880			$4,901,296			$4,892,116			$4,890,760
(a) includes:
net deferred charges of:		$10,505			$11,388			$9,434			$10,287			$10,811
value of in place leases of:		-			-			-			$62			$258
(b) includes:
deferred revenues of:		$2,640			$2,940			$2,747			$2,575			$2,459
(above)/below market leases of:		-			-			-			($6	)		($13	)
distributions in excess of investments in joint ventures of:		$30,105			$27,977			$26,022			$25,065			$23,653
fair value adjustment of derivative instruments:		$51,056			$17,423			$15,955			$34,218			$16,123
(c) Represents the fair value adjustment of derivative instruments and gain on post retirement obligations.

CAMDEN	2009 Financial Outlook
	as of February 9, 2009
(Unaudited)
2008 Reported FFO, Adjusted for Non-Routine Items
	Total	Per Share
2008 Reported FFO	$169,585	$2.90
Adjustments for non-routine items:
Plus: Impairment loss on land	51,323	0.88
Less: Gain on early retirement of debt	(13,566)	(0.23)
2008 FFO adjusted for non-routine items	$207,342	$3.55
2008 Fully Diluted Shares Outstanding - FFO		58,528
2009 Financial Outlook
Earnings Guidance - Per Diluted Share
Expected net income per share - diluted		$0.05 to $0.35
Expected difference between EPS and fully diluted FFO shares		0.00
Expected real estate depreciation		2.91
Expected adjustments for unconsolidated joint ventures		0.02
Expected income allocated to common units		0.17
Expected FFO per share - diluted		$3.15 to $3.45
"Same Property" Communities
Number of Units		42,670
2008 Base Net Operating Income		$334 million
Total Revenue Growth		(0.50%) to (2.50%)
Revenue Growth excluding revenue attributable to ancillary income initiatives (a)		(2.00%) to (4.00%)
Total Expense Growth		5.00% to 6.25%
Expense Growth excluding expenses related to ancillary income initiatives (b)		3.10% to 4.35%
Net Operating Income Growth		(4.50%) to (7.50%)
Physical Occupancy		93.3%
∙ Impact from 1.0% change in NOI Growth is approximately $0.06 / share
Acquisitions/Dispositions
Dispositions (Communities Held for Sale at 12/31/08)		$25 to $30 million
Future Dispositions Volume		$0 to $100 million
Future Acquisitions Volume (consolidated on balance sheet)		$0 to $100 million
Future Acquisitions Volume (joint venture)		$0 to $200 million
Development
Development Starts (consolidated on balance sheet)		$0 to $100 million
Development Starts (joint venture)		$0 to $100 million
2009 Incremental FFO Accretion vs. 2008 for Developments Stabilized in 2008 (consolidated on balance sheet)		$2 million
2009 Incremental FFO Accretion vs. 2008 for Current Developments (consolidated on balance sheet)		$4 to $5 million
2009 Incremental FFO Dilution vs. 2008 from Impaired Assets (excludes 2008 impairment loss on land)		($6 million)
2009 Incremental FFO Accretion vs. 2008 for Current Developments (joint venture)		$3 million
Capitalized Maintenance Expenditures		$25 to $30 million
Non-Property Income
Non-Property Income, Net		$4 to $6 million
Includes: Fee and asset management income, net of expenses and Interest and other income
Corporate Expenses
General and Administrative and Property Management Expense		$48 to $52 million
Anticipated 1Q2009 Severance Charge		$1 million
Debt
Capitalized Interest		$9 to $11 million
Expensed Interest		$126 to $134 million
30 Day LIBOR (average)		0.70%

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) and Valet Waste (Camden's door to door trash collection program).
(b)	Excludes expenses associated with Perfect Connection (Camden's bulk cable program) and Valet Waste (Camden's door to door trash collection program).
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,
	2008			2007			2008			2007
Net income (loss)		($34,909	)		$80,976			$70,973			$148,457
Real estate depreciation and amortization from continuing operations		42,403			39,247			168,264			154,140
Real estate depreciation from discontinued operations		-			1,287			2,745			6,924
Adjustments for unconsolidated joint ventures		1,960			982			7,103			4,934
Income from continuing operations allocated to common units		573			1,444			3,617			4,279
Income from discontinued operations allocated to common units		-			8,509			-			13,517
(Gain) loss on sale of operating properties, net of taxes		-			-			(2,929	)		1,184
(Gain) loss on sale of discontinued operations		77			(75,306	)		(80,188	)		(106,282	)
Funds from operations - diluted		$10,104			$57,139			$169,585			$227,153
Weighted average number of common and
common equivalent shares outstanding:
EPS diluted		55,401			57,613			55,272			59,125
FFO diluted		58,398			60,597			58,528			62,120
Net income per common share - diluted		($0.63	)		$1.41			$1.28			$2.51
FFO per common share - diluted		$0.17			$0.94			$2.90			$3.66

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:

	1Q09 Range				2009 Range
	Low		High		Low		High
Expected net income per share - diluted		$0.02		$0.06		$0.05		$0.35
Expected real estate depreciation		0.73		0.73		2.91		2.91
Expected adjustments for unconsolidated joint ventures		0.01		0.01		0.02		0.02
Expected income allocated to common units		0.04		0.04		0.17		0.17
Expected FFO per share - diluted		$0.80		$0.84		$3.15		$3.45
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.

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,
	2008			2007			2008			2007
Net income		($34,909	)		$80,976			$70,973			$148,457
Fee and asset management income		(2,274	)		(1,722	)		(9,167	)		(8,293	)
Sale of technology investments		-			-			-			(623	)
Interest and other income		(1,077	)		(4,047	)		(4,736	)		(8,804	)
Income (loss) on deferred compensation plans		13,713			1,120			33,443			(7,282	)
Property management expense		4,722			4,437			19,910			18,413
Fee and asset management expense		1,435			1,150			6,054			4,552
General and administrative expense		7,699			8,514			31,586			32,590
Interest expense		33,702			31,350			132,399			115,753
Depreciation and amortization		43,300			40,068			171,814			157,297
Amortization of deferred financing costs		837			949			2,958			3,661
Expense (benefit) on deferred compensation plans		(13,713	)		(1,120	)		(33,443	)		7,282
(Gain) loss on sale of properties, including land		-			-			(2,929	)		-
Gain on early retirement of debt		(8,828	)		-			(13,566	)		-
Equity in income (loss) of joint ventures		483			(454	)		1,265			(1,526	)
Impairment loss on land		51,323			1,447			51,323			1,447
Distributions on perpetual preferred units		1,750			1,750			7,000			7,000
Income allocated to common units and other minority interests		652			1,374			4,052			4,729
Income tax expense		327			478			843			3,052
Income from discontinued operations		(543	)		(2,431	)		(4,480	)		(13,214	)
Gain (loss) on sale of discontinued operations		77			(76,063	)		(80,198	)		(107,039	)
Income from discontinued operations allocated to common units		-			8,509			-			13,517
Net Operating Income (NOI)		$98,676			$96,285			$385,101			$370,969
"Same Property" Communities		$76,823			$79,059			$310,231			$311,459
Non-"Same Property" Communities		10,969			9,170			40,085			30,007
Development and Lease-Up Communities		2,649			(47	)		3,750			(59	)
Redevelopment Communities		7,234			6,521			27,704			25,474
Dispositions / Other		1,001			1,582			3,331			4,088
Net Operating Income (NOI)		$98,676			$96,285			$385,101			$370,969

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,
	2008			2007			2008			2007
Net income		($34,909	)		$80,976			$70,973			$148,457
Interest expense		33,702			31,592			132,865			116,751
Amortization of deferred financing costs		837			949			2,958			3,661
Depreciation and amortization		43,300			40,068			171,814			157,297
Distributions on perpetual preferred units		1,750			1,750			7,000			7,000
Income allocated to common units and other minority interests		652			1,374			4,052			4,729
Income tax expense		327			478			843			3,052
Real estate depreciation and amortization from discontinued operations		-			1,294			2,762			6,955
(Gain) loss on sale of properties, including land		-			-			(2,929	)		-
Gain on early retirement of debt		(8,828	)		-			(13,566	)		-
Equity in income (loss) of joint ventures		483			(454	)		1,265			(1,526	)
Impairment loss on land		51,323			1,447			51,323			1,447
Gain (loss) on sale of discontinued operations		77			(76,063	)		(80,198	)		(107,039	)
Income from discontinued operations allocated to common units		-			8,509			-			13,517
EBITDA		$88,714			$91,920			$349,162			$354,301

CONTACT:
Camden Property Trust, Houston
Kim Callahan, 713-354-2549