EXHIBIT 99.1
Camden Property Trust Announces First Quarter 2004 Operating Results
HOUSTON--(BUSINESS WIRE)--May 6, 2004--Camden Property Trust
(NYSE:CPT) announced that its net income ("EPS") for the first quarter
of 2004 was $9.4 million or $0.22 per diluted share compared to $8.3
million or $0.20 per diluted share for the same period in 2003. Funds
from operations ("FFO") for the first quarter of 2004 totaled $0.84
per diluted share or $36.8 million, as compared to $0.79 per diluted
share or $33.6 million reported for the same period in 2003. FFO for
the first quarter of 2004 included $1.7 million or $0.04 per diluted
share related to an insurance settlement for lost rents related to a
fire in one of Camden's communities in 2000, and $0.9 million or $0.02
per diluted share associated with the sale of an e-commerce investment
that had previously been written off. FFO for the first quarter of
2003 has been adjusted from amounts previously reported to include
$1.4 million or $0.03 per diluted share from gains on sale of
undepreciated property in accordance with the National Association of
Real Estate Investment Trusts ("NAREIT") definition of FFO. A
reconciliation of net income to FFO is included in the financial
tables accompanying this press release.
Physical occupancy levels averaged 94.3% during the first quarter
of 2004 as compared to 94.5% in the fourth quarter of 2003 and 91.4%
in the first quarter of 2003. For the 44,481 apartment homes included
in "same-property" results, first quarter 2004 revenues increased 3.0%
while operating expenses increased 2.6%, producing a 3.3% increase in
same-property net operating income ("NOI") compared to the first
quarter of 2003. On a sequential basis, first quarter 2004 same
property NOI declined 1.4% compared to fourth quarter 2003, with
revenues declining 0.1% and expenses increasing 1.9% compared to the
prior quarter. 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.
The Company continued its lease-ups of Camden Sierra at Otay Ranch
in Chula Vista, CA, Camden Oak Crest in Houston, TX and Camden Harbor
View in Long Beach, CA during the quarter. Camden Sierra at Otay Ranch
is currently 90% leased and 91% occupied, Camden Oak Crest is 93%
leased and 95% occupied, and Camden Harbor View is 51% leased and 48%
occupied. Construction continued on Camden Harbor View and Camden
Westwind in Ashburn, VA, with expected completion dates of second
quarter 2004 and first quarter 2006, respectively. Camden Westwind is
being developed in a joint venture format, with Camden retaining a 20%
ownership interest.
The Company also began construction during the quarter on two new
development projects: Camden Lee Vista II in Orlando, FL and Camden
Farmers Market II in Dallas, TX. Camden Lee Vista II is a suburban
garden-style community featuring 366 one- and two-bedroom apartment
homes. Camden Farmers Market II is a 284-home urban-infill apartment
and loft community, featuring 132 traditional class "A" apartment
layouts, and 152 "loft-style" units with amenities including concrete
flooring, exposed HVAC duct work, upgraded lighting features and open
floorplans. Both projects will be located adjacent to existing Camden
communities (Camden Lee Vista and Camden Farmers Market), and initial
occupancy is scheduled for first quarter 2005 and second quarter 2005,
respectively.
Camden reconfirmed its expected range for 2004 FFO between $3.10
and $3.30 per diluted share and 2004 EPS between $0.58 and $0.78 per
diluted share, excluding any gains recognized from property sales. The
2004 guidance is based on projections of same-property NOI growth
between -2.0% and 2.0%, acquisitions of $100 million, dispositions of
$100 million and new development starts of $100 to $200 million. For
2004, 12 research analysts have contributed FFO estimates on CPT to
First Call ranging from $3.10 to $3.29 per diluted share, for a mean
of $3.22 per diluted share. The Company also provided guidance for the
second quarter of 2004 of $0.77 to $0.80 per diluted share for FFO and
$0.15 to $0.18 per diluted share for EPS. Camden updates its earnings
guidance to the market on a quarterly basis. A reconciliation of
expected net income to expected FFO is included in the financial
tables accompanying this press release.
The Company will hold a conference call on Friday, May 7, 2004 at
10:00 AM Central Time to review its first quarter results and discuss
its outlook for future performance. To participate in the call, please
dial 800-884-5695 (domestic) or 617-786-2960 (international) by 9:50
AM Central Time and request the Camden Property Trust First Quarter
Earnings Call, Conference Passcode #62735633, 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 or by calling Camden's Investor Relations Department
at 800-922-6336.
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.
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 144 properties containing 51,344 apartment homes in the
Sunbelt and Midwestern markets from Florida to California. Upon
completion of four properties under development, the Company's
portfolio will increase to 52,996 apartment homes in 148 properties.
For additional information, please contact Camden's Investor
Relations Department at 800-922-6336 or 713-354-2787 or access our
website at http://www.camdenliving.com.
CAMDEN
OPERATING RESULTS
(In thousands, except per share and property data amounts)
- ----------------------------------------------------------------------
(Unaudited) Three Months Ended
March 31,
-------------------
OPERATING DATA 2004 2003
- -------------- --------- ---------
Revenues
Rental revenues $96,305 $90,101
Other property revenues 8,465 7,591
--------- ---------
Total property revenues 104,770 97,692
--------- ---------
Development and construction fees 1,761 1,336
Management fees 420 434
Other revenues 4,281 1,612
--------- ---------
Total revenues 111,232 101,074
Expenses
Property operating and maintenance 30,394 28,356
Real estate taxes 11,510 11,164
--------- ---------
Total property expenses 41,904 39,520
--------- ---------
Property management 2,869 2,537
Fee and asset management 989 1,563
General and administrative 4,186 3,611
Other expenses - 1,077
Interest 21,135 18,356
Amortization of deferred financing costs 764 626
Depreciation 26,609 25,929
--------- ---------
Total expenses 98,456 93,219
--------- ---------
Income before gain on sale of land, impairment
loss on land held for sale, equity in income of
joint ventures and minority interests 12,776 7,855
Gain on sale of land 1,255 1,423
Impairment loss on land held for sale (1,143) -
Equity in income of joint ventures 99 2,643
Income allocated to minority interests
Distributions on units convertible into
perpetual preferred shares (2,843) (3,218)
Income allocated to units convertible into
common shares (756) (369)
--------- ---------
Net income $9,388 $8,334
========= =========
FUNDS FROM OPERATIONS
- ---------------------
Net income $9,388 $8,334
Real estate depreciation 26,120 25,389
Adjustments for unconsolidated joint ventures 522 535
(Gain) on sale of properties held in joint
ventures - (985)
Income allocated to units convertible into
common shares 756 369
--------- ---------
Funds from operations - diluted $36,786 $33,642
========= =========
PER SHARE DATA
- --------------
Net income - basic $0.23 $0.21
Net income - diluted 0.22 0.20
Funds from operations - diluted 0.84 0.79
Cash distributions 0.64 0.64
Weighted average number of common and
common equivalent shares outstanding:
Basic 40,031 39,164
Diluted 42,146 42,752
FFO - diluted 44,025 42,752
PROPERTY DATA
- -------------
Total operating properties (end of period) (a) 144 143
Total operating apartment homes in operating
properties (end of period) (a) 51,344 50,790
Total operating apartment homes (weighted
average) 46,912 45,911
(a) Includes joint venture investments.
Note: Please refer to the following pages for definitions and
reconciliations of all non-GAAP financial measures presented in
this document.
BALANCE SHEETS
(In thousands)
- ----------------------------------------------------------------------
(Unaudited) Mar 31, Dec 31, Sep 30,
2004 2003 2003
----------- ----------- -----------
ASSETS
Real estate assets, at cost
Land $404,113 $400,490 $397,006
Buildings and improvements 2,538,193 2,499,214 2,462,252
----------- ----------- -----------
2,942,306 2,899,704 2,859,258
Accumulated depreciation (627,808) (601,688) (575,459)
----------- ----------- -----------
Net operating real estate
assets 2,314,498 2,298,016 2,283,799
Properties under development,
including land 156,466 189,119 236,529
Investment in joint ventures 10,754 11,033 9,994
Land held for sale 1,800 - -
----------- ----------- -----------
Total real estate assets 2,483,518 2,498,168 2,530,322
Accounts receivable - affiliates 28,984 25,997 7,141
Notes receivable
Affiliates 9,335 9,017 -
Other 41,685 41,416 24,289
Other assets, net (a) 42,922 40,951 39,497
Cash and cash equivalents 3,836 3,357 2,341
Restricted cash 6,794 6,655 4,058
----------- ----------- -----------
Total assets $2,617,074 $2,625,561 $2,607,648
=========== =========== ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities
Notes payable
Unsecured $1,291,074 $1,277,879 $1,248,852
Secured 230,622 231,798 232,953
Accounts payable 26,112 26,150 24,025
Accrued real estate taxes 14,165 27,407 31,444
Accrued expenses and other
liabilities 54,397 50,111 51,266
Distributions payable 30,974 30,946 30,698
----------- ----------- -----------
Total liabilities 1,647,344 1,644,291 1,619,238
Commitments and contingencies
Minority interests
Units convertible into perpetual
preferred shares 149,815 149,815 149,815
Units convertible into common
shares 45,711 46,570 47,382
----------- ----------- -----------
Total minority interests 195,526 196,385 197,197
Shareholders' equity
Common shares of beneficial
interest 484 483 481
Additional paid-in capital 1,340,564 1,330,512 1,321,103
Distributions in excess of net
income (314,720) (297,808) (281,256)
Unearned restricted share awards (15,937) (11,875) (12,667)
Treasury shares, at cost (236,187) (236,427) (236,448)
----------- ----------- -----------
Total shareholders' equity 774,204 784,885 791,213
----------- ----------- -----------
Total liabilities and
shareholders' equity $2,617,074 $2,625,561 $2,607,648
=========== =========== ===========
(a) includes net deferred charges
of: $9,313 $9,558 $8,691
(Unaudited) Jun 30, Mar 31,
2003 2003
------------ ------------
ASSETS
Real estate assets, at cost
Land $396,527 $392,794
Buildings and improvements 2,437,833 2,392,936
------------ ------------
2,834,360 2,785,730
Accumulated depreciation (549,769) (524,165)
------------ ------------
Net operating real estate assets 2,284,591 2,261,565
Properties under development, including
land 242,682 264,259
Investment in joint ventures 10,247 10,919
Land held for sale - -
------------ ------------
Total real estate assets 2,537,520 2,536,743
Accounts receivable - affiliates 6,736 6,444
Notes receivable
Affiliates - 1,800
Other 21,314 17,664
Other assets, net (a) 40,959 43,143
Cash and cash equivalents 1,550 1,945
Restricted cash 4,258 4,365
------------ ------------
Total assets $2,612,337 $2,612,104
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Notes payable
Unsecured $1,236,681 $1,208,513
Secured 240,711 248,481
Accounts payable 34,580 36,978
Accrued real estate taxes 20,822 12,782
Accrued expenses and other liabilities 44,226 51,397
Distributions payable 30,663 30,639
------------ ------------
Total liabilities 1,607,683 1,588,790
Commitments and contingencies
Minority interests
Units convertible into perpetual preferred
shares 149,815 149,815
Units convertible into common shares 48,354 49,621
------------ ------------
Total minority interests 198,169 199,436
Shareholders' equity
Common shares of beneficial interest 480 479
Additional paid-in capital 1,320,045 1,318,649
Distributions in excess of net income (261,577) (241,960)
Unearned restricted share awards (15,477) (16,282)
Treasury shares, at cost (236,986) (237,008)
------------ ------------
Total shareholders' equity 806,485 823,878
------------ ------------
Total liabilities and shareholders'
equity $2,612,337 $2,612,104
============ ============
(a) includes net deferred charges of: $9,268 $9,925
NON-GAAP FINANCIAL MEASURES
DEFINITIONS & RECONCILIATIONS
(In thousands, except per share amounts)
- ----------------------------------------------------------------------
(Unaudited)
This document contains certain non-GAAP financial measures that
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 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
March 31,
-------- --------
2004 2003 (a)
-------- --------
Net income $9,388 $8,334
Real estate depreciation 26,120 25,389
Adjustments for unconsolidated joint
ventures 522 535
(Gain) on sale of properties held in
joint ventures - (985)
Income allocated to units convertible
into common shares 756 369
-------- --------
Funds from operations - diluted $36,786 $33,642
======== ========
Weighted average number of common and
common equivalent shares outstanding:
EPS diluted 42,146 42,752
FFO diluted 44,025 42,752
Net income per common share - diluted $0.22 $0.20
FFO per common share - diluted $0.84 $0.79
(a) FFO for the three months ended March 31, 2003 previously included
a reduction of $1.4 million from gains on sales of undepreciated
property. We have adjusted FFO to include these types of gains as
they currently do not meet NAREITs definition of gains that should
be adjusted from net income in calculating FFO.
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:
2Q04 Range 2004 Range
Low High Low High
------ ------ -------- --------
Expected net income per share -
diluted $0.15 $0.18 $0.58 $0.78
Expected real estate depreciation 0.60 0.60 2.42 2.42
Expected adjustments for
unconsolidated joint ventures 0.01 0.01 0.05 0.05
Expected income allocated to units
convertible into common shares 0.01 0.01 0.05 0.05
------ ------ -------- --------
Expected FFO per share - diluted $0.77 $0.80 $3.10 $3.30
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
March 31,
---------- ----------
2004 2003
---------- ----------
Net income $9,388 $8,334
Development and construction fees (1,761) (1,336)
Management fees (420) (434)
Other income (4,281) (1,612)
Property management expense 2,869 2,537
Fee and asset management expense 989 1,563
General and administrative expense 4,186 3,611
Other expenses - 1,077
Interest expense 21,135 18,356
Amortization of deferred financing costs 764 626
Depreciation 26,609 25,929
Gain on sale of land (1,255) (1,423)
Impairment loss on land held for sale 1,143 -
Equity in income of joint ventures (99) (2,643)
Distributions on units convertible into
perpetual preferred shares 2,843 3,218
Income allocated to units convertible into
common shares 756 369
---------- ----------
Net Operating Income (NOI) $62,866 $58,172
"Same Property" net operating income $58,102 $56,244
Non-"Same Property" net operating income 2,799 1,740
Development and Lease-Up net operating income 1,938 181
Dispositions / Other net operating income 27 7
---------- ----------
Net Operating Income (NOI) $62,866 $58,172
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
March 31,
----------- -----------
2004 2003
----------- -----------
Net income $9,388 $8,334
Interest expense 21,135 18,356
Amortization of deferred financing costs 764 626
Depreciation 26,609 25,929
Distributions on units convertible into
perpetual preferred shares 2,843 3,218
Income allocated to units convertible into
common shares 756 369
Gain on sale of land (1,255) (1,423)
Impairment loss on land held for sale 1,143 -
Equity in income of joint ventures (99) (2,643)
----------- -----------
EBITDA $61,284 $52,766
CONTACT: Camden Property Trust, Houston
Investor Relations
Kim Callahan, 800-922-6336 or 713-354-2787
www.camdenliving.com