CAMDEN PROPERTY TRUST ANNOUNCES FOURTH QUARTER
AND FULL YEAR 2009 OPERATING RESULTS
Houston, TEXAS (February 8, 2010) – Camden Property Trust (NYSE: CPT) today announced operating results for the three and twelve months ended December 31, 2009.
Funds from Operations (“FFO”)
FFO for the fourth quarter of 2009 totaled ($0.53) per diluted share or ($36.3) million, as compared to $0.17 per diluted share or $10.1 million for the same period in 2008. FFO for the three months ended December 31, 2009 included a $1.24 per diluted share impact from impairment losses on land held for development and predevelopment investments. 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 related to early retirement of debt. FFO excluding these non-recurring items for the three months ended December 31, 2009 and December 31, 2008 would have been $0.71 per diluted share and $0.90 per diluted share respectively.
FFO for the twelve months ended December 31, 2009 totaled $1.68 per diluted share or $109.9 million, as compared to $2.90 per diluted share or $169.6 million for the same period in 2008. FFO for the twelve months ended December 31, 2009 included a $1.31 per diluted share impact from impairment losses on land held for development and predevelopment investments, and a $0.04 per diluted share impact from losses related to early retirement of debt. 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 related to early retirement of debt. FFO excluding these non-recurring items for the twelve months ended December 31, 2009 and December 31, 2008 would have been $3.04 per diluted share and $3.54 per diluted share respectively.
Net Income Attributable to Common Shareholders (“EPS”)
The Company reported a net loss attributable to common shareholders (“EPS”) of $79.3 million or $1.19 per diluted share for the fourth quarter of 2009, as compared to a net loss of $34.9 million or $0.63 per diluted share for the same period in 2008. EPS for the three months ended December 31, 2009 included a $1.24 per diluted share impact from impairment losses on land held for development and predevelopment investments. 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 related to early retirement of debt.
For the twelve months ended December 31, 2009, Camden reported a net loss attributable to common shareholders of $50.8 million or $0.80 per diluted share, as compared to net income attributable to common shareholders of $71.0 million or $1.28 per diluted share for the same period in 2008. EPS for the twelve months ended December 31, 2009 included an $1.31 per diluted share impact from impairment losses on land held for development and predevelopment investments, a $0.27 per diluted share impact from gain on sale of discontinued operations, and a $0.04 per diluted share impact from losses related to early retirement of debt. 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 related to early retirement of debt.
A reconciliation of net income attributable to common shareholders to FFO is included in the financial tables accompanying this press release.
Same-Property Results
For the 42,670 apartment homes included in consolidated same-property results, fourth quarter 2009 same-property net operating income (“NOI”) declined 5.5% compared to the fourth quarter of 2008, with revenues declining 5.1% and expenses declining 4.4%. On a sequential basis, fourth quarter 2009 same-property NOI increased 2.6% compared to the third quarter of 2009, with revenues declining 2.7% and expenses declining 10.2% compared to the prior quarter. On a full-year basis, 2009 same-property NOI declined 6.0%, with a revenue decline of 3.1% and expense growth of 1.8% compared to the same period in fiscal year 2008. Same-property physical occupancy levels for the combined portfolio averaged 92.9% during the fourth quarter of 2009, compared to 93.7% in the fourth quarter of 2008 and 93.7% in the third quarter of 2009.
The Company defines same-property communities as communities owned and stabilized as of January 1, 2008, 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, the Company completed lease-up at Camden Orange Court in Orlando, FL, a $45.5 million project that is currently 94% occupied. Camden currently has one wholly-owned apartment community completed and in lease-up: Camden Dulles Station in Oak Hill, VA, a $72.3 million project that is currently 85% leased.
Camden also had two joint venture communities which were completed and in lease-up: Camden Amber Oaks in Austin, TX, a $35.2 million project that is currently 80% leased; and Braeswood Place in Houston, TX, a $50.3 million project that is currently 64% leased. Camden has two additional joint venture communities currently under construction in Houston, TX: Belle Meade, a $36.7 million project that is currently 32% leased; and Camden Travis Street, a $39.0 million project that is currently 31% leased.
Camden recently announced a reduction in the number of planned development projects it would undertake, which resulted in a $85.6 million impairment charge during the fourth quarter of 2009. [See press release dated February 2, 2010 for further details.]
Earnings Guidance
Camden provided initial earnings guidance for 2010 based on its current and expected views of the apartment market and general economic conditions. Full-year 2010 FFO is expected to be $2.35 to $2.65 per diluted share, and full-year 2010 EPS is expected to be $(0.24) to $0.06 per diluted share. First quarter 2010 earnings guidance is $0.64 to $0.68 per diluted share for FFO and $(0.01) to $0.03 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 2010 earnings guidance is based on projections of same-property revenue declines between 2.25% and 4.25%, expense growth between 2.0% and 3.5%, and NOI declines between 5.5% and 8.5%. Additional information on the Company’s 2010 financial outlook and a reconciliation of expected net income attributable to common shareholders 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 9, 2010 at 11:00 a.m. Central Time to review its fourth quarter and full-year 2009 results and discuss its outlook for future performance. To participate in the call, please dial (866) 843-0890 (Domestic) or (412) 317-9250 (International) by 10:50 a.m. Central Time and enter passcode: 4636692, or join the live webcast of the conference call by accessing the Investor Relations section of the Company’s website at 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 183 properties containing 63,286 apartment homes across the United States. Upon completion of two properties under development, the Company’s portfolio will increase to 63,658 apartment homes in 185 properties. Camden was recently named by FORTUNE® Magazine for the third 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 | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| Property revenues | | | | | | | | | | |
| Rental revenues | | $131,420 | | | $137,921 | | | $537,422 | | | $547,718 | |
| Other property revenues | | 21,643 | | | 19,721 | | | 86,504 | | | 76,298 | |
| Total property revenues | | 153,063 | | | 157,642 | | | 623,926 | | | 624,016 | |
| | | | | | | | | | | | | |
| Property expenses | | | | | | | | | | |
| Property operating and maintenance | | 42,099 | | | 41,990 | | | 175,788 | | | 168,981 | |
| Real estate taxes | | 15,937 | | | 17,052 | | | 71,079 | | | 70,301 | |
| Total property expenses | | 58,036 | | | 59,042 | | | 246,867 | | | 239,282 | |
| | | | | | | | | | | | | |
| Non-property income | | | | | | | | | | |
| Fee and asset management income | | 1,915 | | | 2,274 | | | 8,008 | | | 9,167 | |
| Interest and other income | | 412 | | | 1,077 | | | 2,826 | | | 4,736 | |
| Income (loss) on deferred compensation plans | | 2,907 | | | (13,713 | ) | | 14,609 | | | (33,443 | ) |
| Total non-property income (loss) | | 5,234 | | | (10,362 | ) | | 25,443 | | | (19,540 | ) |
| | | | | | | | | | | | | |
| Other expenses | | | | | | | | | | |
| Property management | | 5,016 | | | 4,722 | | | 18,864 | | | 19,910 | |
| Fee and asset management | | 1,366 | | | 1,435 | | | 4,878 | | | 6,054 | |
| General and administrative | | 8,233 | | | 7,699 | | | 31,243 | | | 31,586 | |
| Interest | | 30,932 | | | 33,702 | | | 128,296 | | | 132,399 | |
| Depreciation and amortization | | 43,919 | | | 43,300 | | | 174,682 | | | 171,814 | |
| Amortization of deferred financing costs | | 1,569 | | | 837 | | | 3,925 | | | 2,958 | |
| Expense (benefit) on deferred compensation plans | | 2,907 | | | (13,713 | ) | | 14,609 | | | (33,443 | ) |
| Total other expenses | | 93,942 | | | 77,982 | | | 376,497 | | | 331,278 | |
| | | | | | | | | | | | | |
| Income from continuing operations before gain on sale of properties, | |
| including land, gain (loss) on early retirement of debt, impairment associated | |
| with land development activities, and equity in income (loss) of joint ventures | | 6,319 | | | 10,256 | | | 26,005 | | | 33,916 | |
| Gain on sale of properties, including land | | - | | | - | | | - | | | 2,929 | |
| Gain (loss) on early retirement of debt | | - | | | 8,828 | | | (2,550 | ) | | 13,566 | |
| Impairment associated with land development activities | | (85,614 | ) | | (51,323 | ) | | (85,614 | ) | | (51,323 | ) |
| Equity in income (loss) of joint ventures | | 103 | | | (483 | ) | | 695 | | | (1,265 | ) |
| Loss from continuing operations before income taxes | | (79,192 | ) | | (32,722 | ) | | (61,464 | ) | | (2,177 | ) |
| Income tax expense - current | | (195 | ) | | (327 | ) | | (967 | ) | | (843 | ) |
| Loss from continuing operations | | (79,387 | ) | | (33,049 | ) | | (62,431 | ) | | (3,020 | ) |
| Income from discontinued operations | | - | | | 619 | | | 1,341 | | | 4,847 | |
| Gain (loss) on sale of discontinued operations | | - | | | (77 | ) | | 16,887 | | | 80,198 | |
| Net income (loss) | | (79,387 | ) | | (32,507 | ) | | (44,203 | ) | | 82,025 | |
| Less (income) loss allocated to noncontrolling interests | | 1,851 | | | (652 | ) | | 403 | | | (4,052 | ) |
| Less income allocated to perpetual preferred units | | (1,750 | ) | | (1,750 | ) | | (7,000 | ) | | (7,000 | ) |
| Net income (loss) attributable to common shareholders | | ($79,286 | ) | | ($34,909 | ) | | ($50,800 | ) | | $70,973 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME | |
| Net income (loss) | | ($79,387 | ) | | ($32,507 | ) | | ($44,203 | ) | | $82,025 | |
| Other comprehensive income (loss) | | | | |
| Unrealized loss on cash flow hedging activities | | (1,984 | ) | | (36,109 | ) | | (12,291 | ) | | (44,386 | ) |
| Reclassification of net losses on cash flow hedging activities | | 5,750 | | | 2,442 | | | 22,192 | | | 9,317 | |
| Gain on postretirement obligations | | - | | | 33 | | | - | | | 136 | |
| Comprehensive income (loss) | | (75,621 | ) | | (66,141 | ) | | (34,302 | ) | | 47,092 | |
| Less (income) loss allocated to noncontrolling interests | | 1,851 | | | (652 | ) | | 403 | | | (4,052 | ) |
| Less income allocated to perpetual preferred units | | (1,750 | ) | | (1,750 | ) | | (7,000 | ) | | (7,000 | ) |
| Comprehensive income (loss) attributable to common shareholders | | ($75,520 | ) | | ($68,543 | ) | | ($40,899 | ) | | $36,040 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| PER SHARE DATA | | | | | | | | | | |
| Net income (loss) attributable to common shareholders - basic | | ($1.19 | ) | | ($0.63 | ) | | ($0.80 | ) | | $1.28 | |
| Net income (loss) attributable to common shareholders - diluted | | (1.19 | ) | | (0.63 | ) | | (0.80 | ) | | 1.28 | |
| Income (loss) from continuing operations attributable to common shareholders - basic | | (1.19 | ) | | (0.64 | ) | | (1.09 | ) | | (0.26 | ) |
| Income (loss) from continuing operations attributable to common shareholders - diluted | | (1.19 | ) | | (0.64 | ) | | (1.09 | ) | | (0.26 | ) |
| | | | | | | | | | | | | |
| Weighted average number of common and | | | | |
| common equivalent shares outstanding: | | | | |
| Basic | | 66,134 | | | 55,401 | | | 62,359 | | | 55,272 | |
| Diluted | | 66,134 | | | 55,401 | | | 62,359 | | | 55,272 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| 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 | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| | | | | | | | | | | | | |
| Net income (loss) attributable to common shareholders | | | ($79,286 | ) | | | ($34,909 | ) | | | ($50,800 | ) | | | $70,973 | |
| Real estate depreciation and amortization from continuing operations | | | 42,773 | | | | 42,403 | | | | 170,480 | | | | 168,264 | |
| Real estate depreciation from discontinued operations | | | - | | | | - | | | | - | | | | 2,745 | |
| Adjustments for unconsolidated joint ventures | | | 1,988 | | | | 1,960 | | | | 7,800 | | | | 7,103 | |
| Income (loss) allocated to noncontrolling interests | | | (1,794 | ) | | | 573 | | | | (646 | ) | | | 3,617 | |
| Gain (loss) on sale of operating properties, net of taxes | | | - | | | | - | | | | - | | | | (2,929 | ) |
| Gain (loss) on sale of discontinued operations | | | - | | | | 77 | | | | (16,887 | ) | | | (80,188 | ) |
| Funds from operations - diluted | | | ($36,319 | ) | | | $10,104 | | | | $109,947 | | | | $169,585 | |
| | | | | | | | | | | | | | | | | |
| PER SHARE DATA | | | | | | | | | | | | | |
| Funds from operations - diluted | | | ($0.53 | ) | | | $0.17 | | | | $1.68 | | | | $2.90 | |
| Cash distributions | | | 0.45 | | | | 0.70 | | | | 2.05 | | | | 2.80 | |
| | | | | | | | | | | | | | | | | |
| Weighted average number of common and | | | | | |
| common equivalent shares outstanding: | | | | | |
| FFO - diluted | | | 69,119 | | | | 58,398 | | | | 65,266 | | | | 58,528 | |
| | | | | | | | | | | | | | | | | |
| PROPERTY DATA | | | | | | | | | | | | | |
Total operating properties (end of period) (a) | | | 183 | | | | 181 | | | | 183 | | | | 181 | |
Total operating apartment homes in operating properties (end of period) (a) | | | 63,286 | | | | 62,903 | | | | 63,286 | | | | 62,903 | |
| Total operating apartment homes (weighted average) | | | 50,515 | | | | 50,509 | | | | 50,608 | | | | 51,277 | |
| Total operating apartment homes - excluding discontinued operations (weighted average) | | | 50,515 | | | | 49,838 | | | | 50,272 | | | | 49,312 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
(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, | |
| | | 2009 | | | 2009 | | | 2009 | | | 2009 | | | 2008 | |
| ASSETS | | | | | | | | | | | | | | | |
| Real estate assets, at cost | | | | | | | | | | | | | |
| Land | | | $747,921 | | | | $746,825 | | | | $746,936 | | | | $746,935 | | | | $744,059 | |
| Buildings and improvements | | | 4,512,124 | | | | 4,484,335 | | | | 4,473,906 | | | | 4,466,296 | | | | 4,447,587 | |
| | | | 5,260,045 | | | | 5,231,160 | | | | 5,220,842 | | | | 5,213,231 | | | | 5,191,646 | |
| Accumulated depreciation | | | (1,149,056 | ) | | | (1,107,227 | ) | | | (1,065,861 | ) | | | (1,023,466 | ) | | | (981,049 | ) |
| Net operating real estate assets | | | 4,110,989 | | | | 4,123,933 | | | | 4,154,981 | | | | 4,189,765 | | | | 4,210,597 | |
| Properties under development and land | | | 201,581 | | | | 279,620 | | | | 268,655 | | | | 258,239 | | | | 264,188 | |
| Investments in joint ventures | | | 43,542 | | | | 43,236 | | | | 22,334 | | | | 15,158 | | | | 15,106 | |
| Properties held for sale, including land | | | - | | | | 6,622 | | | | 6,732 | | | | 20,696 | | | | 20,653 | |
| Total real estate assets | | | 4,356,112 | | | | 4,453,411 | | | | 4,452,702 | | | | 4,483,858 | | | | 4,510,544 | |
| Accounts receivable - affiliates | | | 36,112 | | | | 35,971 | | | | 35,909 | | | | 36,105 | | | | 37,000 | |
| Notes receivable | | | | | | | | | | | | | | | | | |
| Affiliates | | | 45,847 | | | | 54,462 | | | | 54,033 | | | | 58,481 | | | | 58,109 | |
| Other | | | - | | | | - | | | | - | | | | - | | | | 8,710 | |
Other assets, net (a) | | | 102,114 | | | | 104,669 | | | | 92,421 | | | | 84,905 | | | | 103,013 | |
| Cash and cash equivalents | | | 64,156 | | | | 81,683 | | | | 157,665 | | | | 7,256 | | | | 7,407 | |
| Restricted cash | | | 3,658 | | | | 3,901 | | | | 5,190 | | | | 4,437 | | | | 5,559 | |
| Total assets | | | $4,607,999 | | | | $4,734,097 | | | | $4,797,920 | | | | $4,675,042 | | | | $4,730,342 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | | | | | | | | |
| Notes payable | | | | | | | | | | | | | | | | | |
| Unsecured | | | $1,645,926 | | | | $1,646,106 | | | | $1,728,150 | | | | $2,151,492 | | | | $2,103,187 | |
| Secured | | | 979,273 | | | | 976,051 | | | | 969,668 | | | | 680,631 | | | | 729,209 | |
| Accounts payable and accrued expenses | | | 74,420 | | | | 78,466 | | | | 65,012 | | | | 73,250 | | | | 82,575 | |
| Accrued real estate taxes | | | 23,241 | | | | 42,386 | | | | 30,154 | | | | 19,113 | | | | 23,600 | |
Other liabilities (b) | | | 145,176 | | | | 145,464 | | | | 132,763 | | | | 137,397 | | | | 149,554 | |
| Distributions payable | | | 33,025 | | | | 33,028 | | | | 33,050 | | | | 43,136 | | | | 42,936 | |
| Total liabilities | | | 2,901,061 | | | | 2,921,501 | | | | 2,958,797 | | | | 3,105,019 | | | | 3,131,061 | |
| | | | | | | | | | | | | | | | | | | | | |
| Commitments and contingencies | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Perpetual preferred units | | | 97,925 | | | | 97,925 | | | | 97,925 | | | | 97,925 | | | | 97,925 | |
| | | | | | | | | | | | | | | | | | | | | |
| Shareholders' equity | | | | | | | | | | | | | | | | | |
| Common shares of beneficial interest | | | 770 | | | | 770 | | | | 769 | | | | 666 | | | | 660 | |
| Additional paid-in capital | | | 2,525,656 | | | | 2,522,525 | | | | 2,517,788 | | | | 2,242,940 | | | | 2,237,703 | |
| Distributions in excess of net income attributable to common shareholders | | | (492,571 | ) | | | (383,265 | ) | | | (357,168 | ) | | | (345,481 | ) | | | (312,309 | ) |
| Notes receivable secured by common shares | | | (101 | ) | | | (101 | ) | | | (287 | ) | | | (291 | ) | | | (295 | ) |
| Treasury shares, at cost | | | (462,188 | ) | | | (462,188 | ) | | | (462,751 | ) | | | (462,751 | ) | | | (463,209 | ) |
Accumulated other comprehensive loss (c) | | | (41,155 | ) | | | (44,921 | ) | | | (41,886 | ) | | | (48,716 | ) | | | (51,056 | ) |
| Total common shareholders' equity | | | 1,530,411 | | | | 1,632,820 | | | | 1,656,465 | | | | 1,386,367 | | | | 1,411,494 | |
| Noncontrolling interest | | | 78,602 | | | | 81,851 | | | | 84,733 | | | | 85,731 | | | | 89,862 | |
| Total shareholders' equity | | | 1,609,013 | | | | 1,714,671 | | | | 1,741,198 | | | | 1,472,098 | | | | 1,501,356 | |
| Total liabilities and shareholders' equity | | | $4,607,999 | | | | $4,734,097 | | | | $4,797,920 | | | | $4,675,042 | | | | $4,730,342 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| (a) includes: | | | | | | | | | | | | | | | | | | | | |
| net deferred charges of: | | | $11,113 | | | | $11,617 | | | | $12,108 | | | | $10,061 | | | | $10,505 | |
| | | | | | | | | | | | | | | | | | | | | |
| (b) includes: | | | | | | | | | | | | | | | | | | | | |
| deferred revenues of: | | | $2,664 | | | | $2,938 | | | | $3,183 | | | | $2,402 | | | | $2,640 | |
| distributions in excess of investments in joint ventures of: | | | $31,410 | | | | $30,507 | | | | $30,287 | | | | $31,318 | | | | $30,105 | |
| fair value adjustment of derivative instruments: | | | $41,083 | | | | $44,730 | | | | $41,797 | | | | $48,693 | | | | $51,068 | |
| | | | | | | | | | | | | | | | | | | | | |
| (c) Represents the fair value adjustment of derivative instruments and gain on post retirement obligations. | |
| CAMDEN | | 2010 Financial Outlook |
| | | as of February 8, 2010 |
| | | | | | | |
| | | | | | | |
| (Unaudited) | | | | | | |
| | | | | | | |
| 2009 Reported FFO, Adjusted for Non-Routine Items | | | | |
| | | | | | | |
| | | Total | | | Per Share | |
| 2009 Reported FFO | | | $109,947 | | | | $1.68 | |
| Adjustments for non-routine items: | | | | | |
| Plus: Impairment associated with land development activities | | | 85,614 | | | | 1.31 | |
| Plus: Loss on early retirement of debt | | | 2,550 | | | | 0.04 | |
| | | | | | | | | |
| 2009 FFO adjusted for non-routine items | | | $198,111 | | | | $3.04 | |
| | | | | | | | | |
| 2009 Fully Diluted Shares Outstanding - FFO | | | | 65,266 | |
| | | | | | | | | |
| December 31, 2009 Fully Diluted Shares Outstanding - FFO | | | | 69,190 | |
| | | | | | | | | |
| 2009 FFO adjusted for non-routine items and December 31, 2009 Fully Diluted Shares Outstanding - FFO | | | | $2.86 | |
| 2010 Financial Outlook | |
| | |
| Earnings Guidance - Per Diluted Share | |
| Expected net income attributable to common shareholders per share - diluted | ($0.24) - $0.06 |
| Expected real estate depreciation | $2.43 |
| Expected adjustments for unconsolidated joint ventures | $0.13 |
| Expected income allocated to noncontrolling interests | $0.03 |
| Expected FFO per share - diluted | $2.35 - $2.65 |
| | |
| "Same Property" Communities | |
| Number of Units | 47,359 |
| 2009 Base Net Operating Income | $353 million |
| Total Revenue Growth | (4.25%) - (2.25%) |
| Total Expense Growth | 2.00% - 3.50% |
| Net Operating Income Growth | (8.50%) - (5.50%) |
| Physical Occupancy | 94.00% |
| Impact from 1.0% change in NOI Growth is approximately $0.05 / share | |
| | |
| Acquisitions/Dispositions | |
| Future Dispositions Volume | $0 - $100 million |
| Future Acquisitions Volume (consolidated on balance sheet) | $0 - $100 million |
| Future Acquisitions Volume (joint venture) | $200 - $500 million |
| | |
| Development | |
| Development Starts (consolidated on balance sheet) | $0 - $150 million |
| Development Starts (joint venture) | $0 - $150 million |
| 2010 Incremental FFO Dilution vs. 2009 from Impaired Assets (excludes 2009 impairment loss on land) | ($6.5 million) |
| | |
| Capitalized Maintenance Expenditures | $35 - $40 million |
| | |
| Non-Property Income | |
| Non-Property Income, Net | $5 - $7 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 - $52 million |
| | |
| Debt | |
| Capitalized Interest | $4 - $6 million |
| Expensed Interest | $127 - $130 million |
| 30 Day LIBOR (average) | 0.58% |
| | |
| Note: Please refer to pages 29 and 30 for definitions and reconciliations of all non-GAAP financial measures presented in this document. |
| | |
| 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 attributable to common shares 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 attributable to common shareholders to FFO is provided below: | |
| | | | | | | | | | | | | |
| | | Three Months Ended | | | Twelve Months Ended | |
| | | December 31, | | | December 31, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| Net income (loss) attributable to common shareholders | | | ($79,286 | ) | | | ($34,909 | ) | | | ($50,800 | ) | | | $70,973 | |
| Real estate depreciation and amortization from continuing operations | | | 42,773 | | | | 42,403 | | | | 170,480 | | | | 168,264 | |
| Real estate depreciation from discontinued operations | | | - | | | | - | | | | - | | | | 2,745 | |
| Adjustments for unconsolidated joint ventures | | | 1,988 | | | | 1,960 | | | | 7,800 | | | | 7,103 | |
| Income (loss) allocated to noncontrolling interests | | | (1,794 | ) | | | 573 | | | | (646 | ) | | | 3,617 | |
| Gain (loss) on sale of operating properties, net of taxes | | | - | | | | - | | | | - | | | | (2,929 | ) |
| Gain (loss) on sale of discontinued operations | | | - | | | | 77 | | | | (16,887 | ) | | | (80,188 | ) |
| Funds from operations - diluted | | | ($36,319 | ) | | | $10,104 | | | | $109,947 | | | | $169,585 | |
| | | | | | | | | | | | | | | | | |
| Weighted average number of common and | | | | | | | | | | | | | | | | |
| common equivalent shares outstanding: | | | | | | | | | | | | | | | | |
| EPS diluted | | | 66,134 | | | | 55,401 | | | | 62,359 | | | | 55,272 | |
| FFO diluted | | | 69,119 | | | | 58,398 | | | | 65,266 | | | | 58,528 | |
| | | | | | | | | | | | | | | | | |
| Net income attributable to common shareholders - diluted | | | ($1.19 | ) | | | ($0.63 | ) | | | ($0.80 | ) | | | $1.28 | |
| FFO per common share - diluted | | | ($0.53 | ) | | | $0.17 | | | | $1.68 | | | | $2.90 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| 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 attributable to common shareholders (EPS). A reconciliation of the ranges provided for expected | | | | | |
| net income attributable to common shareholders per diluted share to expected FFO per diluted share is provided below: | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | 1Q10 Range | | | 2010 Range | |
| | | Low | | | High | | | Low | | | High | |
| | | | | | | | | | | | | | | | | |
| Expected net income attributable to common shareholders per share - diluted | | | ($0.01 | ) | | | $0.03 | | | | ($0.24 | ) | | | $0.06 | |
| Expected real estate depreciation | | | 0.61 | | | | 0.61 | | | | 2.43 | | | | 2.43 | |
| Expected adjustments for unconsolidated joint ventures | | | 0.03 | | | | 0.03 | | | | 0.13 | | | | 0.13 | |
| Expected income allocated to noncontrolling interests | | | 0.01 | | | | 0.01 | | | | 0.03 | | | | 0.03 | |
| Expected FFO per share - diluted | | | 0.64 | | | | 0.68 | | | | $2.35 | | | | $2.65 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| 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) | | | | | | | | | | | | |
| 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 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 | | | Twelve Months Ended | |
| | | December 31, | | | December 31, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| Net income (loss) attributable to common shareholders | | | $(79,286 | ) | | | $(34,909 | ) | | | $(50,800 | ) | | | $70,973 | |
| Less: Fee and asset management income | | | (1,915 | ) | | | (2,274 | ) | | | (8,008 | ) | | | (9,167 | ) |
| Less: Interest and other income | | | (412 | ) | | | (1,077 | ) | | | (2,826 | ) | | | (4,736 | ) |
| Less: (Income) loss on deferred compensation plans | | | (2,907 | ) | | | 13,713 | | | | (14,609 | ) | | | 33,443 | |
| Plus: Property management expense | | | 5,016 | | | | 4,722 | | | | 18,864 | | | | 19,910 | |
| Plus: Fee and asset management expense | | | 1,366 | | | | 1,435 | | | | 4,878 | | | | 6,054 | |
| Plus: General and administrative expense | | | 8,233 | | | | 7,699 | | | | 31,243 | | | | 31,586 | |
| Plus: Interest expense | | | 30,932 | | | | 33,702 | | | | 128,296 | | | | 132,399 | |
| Plus: Depreciation and amortization | | | 43,919 | | | | 43,300 | | | | 174,682 | | | | 171,814 | |
| Plus: Amortization of deferred financing costs | | | 1,569 | | | | 837 | | | | 3,925 | | | | 2,958 | |
| Plus: (Expense) benefit on deferred compensation plans | | | 2,907 | | | | (13,713 | ) | | | 14,609 | | | | (33,443 | ) |
| Less: Gain on sale of properties, including land | | | - | | | | - | | | | - | | | | (2,929 | ) |
| Less: (Gain) loss on early retirement of debt | | | - | | | | (8,828 | ) | | | 2,550 | | | | (13,566 | ) |
| Less: Equity in (income) loss of joint ventures | | | (103 | ) | | | 483 | | | | (695 | ) | | | 1,265 | |
| Plus: Impairment associated with land development activities | | | 85,614 | | | | 51,323 | | | | 85,614 | | | | 51,323 | |
| Plus: Income allocated to perpetual preferred units | | | 1,750 | | | | 1,750 | | | | 7,000 | | | | 7,000 | |
| Plus: Income (loss) allocated to noncontrolling interests | | | (1,851 | ) | | | 652 | | | | (403 | ) | | | 4,052 | |
| Plus: Income tax expense - current | | | 195 | | | | 327 | | | | 967 | | | | 843 | |
| Less: Income from discontinued operations | | | - | | | | (619 | ) | | | (1,341 | ) | | | (4,847 | ) |
| Less: (Gain) loss on sale of discontinued operations | | | - | | | | 77 | | | | (16,887 | ) | | | (80,198 | ) |
| Net Operating Income (NOI) | | | $95,027 | | | | $98,600 | | | | $377,059 | | | | $384,734 | |
| | | | | | | | | | | | | | | | | |
| "Same Property" Communities | | | $78,257 | | | | $82,810 | | | | $314,342 | | | | $334,426 | |
| Non-"Same Property" Communities | | | 14,758 | | | | 13,791 | | | | 55,969 | | | | 43,833 | |
| Development and Lease-Up Communities | | | 797 | | | | 450 | | | | 2,499 | | | | 698 | |
| Redevelopment Communities | | | 787 | | | | 744 | | | | 2,886 | | | | 3,000 | |
| Dispositions / Other | | | 428 | | | | 805 | | | | 1,363 | | | | 2,777 | |
| Net Operating Income (NOI) | | | $95,027 | | | | $98,600 | | | | $377,059 | | | | $384,734 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| 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) loss of joint ventures, gain on sale of real estate assets, impairment associated with land development activities, (gain) loss on early retirement of debt, and income (loss) allocated | |
| to noncontrolling interests. The Company considers 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 EBITDA is provided below: | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Twelve Months Ended | |
| | | December 31, | | | December 31, | |
| | | | 2009 | | | | 2008 | | | | 2009 | | | | 2008 | |
| Net income (loss) attributable to common shareholders | | | ($79,286 | ) | | | ($34,909 | ) | | | ($50,800 | ) | | | $70,973 | |
| Plus: Interest expense | | | 30,932 | | | | 33,702 | | | | 128,296 | | | | 132,865 | |
| Plus: Amortization of deferred financing costs | | | 1,569 | | | | 837 | | | | 3,925 | | | | 2,958 | |
| Plus: Depreciation and amortization | | | 43,919 | | | | 43,300 | | | | 174,682 | | | | 171,814 | |
| Plus: Income allocated to perpetual preferred units | | | 1,750 | | | | 1,750 | | | | 7,000 | | | | 7,000 | |
| Plus: Income (loss) allocated to noncontrolling interests | | | (1,851 | ) | | | 652 | | | | (403 | ) | | | 4,052 | |
| Plus: Income tax expense - current | | | 195 | | | | 327 | | | | 967 | | | | 843 | |
| Plus: Real estate depreciation and amortization from discontinued operations | | | - | | | | - | | | | - | | | | 2,762 | |
| Less: Gain on sale of properties, including land | | | - | | | | - | | | | - | | | | (2,929 | ) |
| Less: (Gain) loss on early retirement of debt | | | - | | | | (8,828 | ) | | | 2,550 | | | | (13,566 | ) |
| Less: Equity in (income) loss of joint ventures | | | (103 | ) | | | 483 | | | | (695 | ) | | | 1,265 | |
| Plus: Impairment associated with land development activities | | | 85,614 | | | | 51,323 | | | | 85,614 | | | | 51,323 | |
| Less: (Gain) loss on sale of discontinued operations | | | - | | | | 77 | | | | (16,887 | ) | | | (80,198 | ) |
| EBITDA | | | $82,739 | | | | $88,714 | | | | $334,249 | | | | $349,162 | |
