Exhibit 99.1
Camden Property Trust Announces Second Quarter 2004 Operating Results
HOUSTON--(BUSINESS WIRE)--Aug. 5, 2004--Camden Property Trust
(NYSE:CPT) announced that its net income ("EPS") for the second
quarter of 2004 was $7.7 million or $0.18 per diluted share compared
to $5.9 million or $0.14 per diluted share for the same period in
2003. For the six months ended June 30, 2004, EPS totaled $17.0
million or $0.40 per diluted share compared to $14.2 million or $0.35
per diluted share for the same period in 2003.
Funds from operations ("FFO") for the second quarter of 2004
totaled $0.79 per diluted share or $35.1 million, as compared to $0.75
per diluted share or $32.4 million reported for the same period in
2003. FFO for the six months ended June 30, 2004 totaled $1.63 per
diluted share or $71.9 million, as compared to $1.54 per diluted share
or $66.0 million reported for the same period in 2003. FFO for the six
months ended June 30, 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. 2003 FFO has been adjusted from
amounts previously reported to include 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 both the first and
second quarters of 2004 as compared to 91.4% and 92.4% in the first
and second quarters of 2003 respectively. For the 44,481 apartment
homes included in "same-property" results, second quarter 2004
revenues increased 0.6% while operating expenses increased 2.8%,
producing a 0.9% decline in same-property net operating income ("NOI")
compared to the second quarter of 2003. On a sequential basis, second
quarter 2004 same-property NOI declined 2.2% compared to first quarter
2004, with revenues declining 0.2% and expenses increasing 3.0%
compared to the prior quarter. On a year-to-date basis, 2004
same-property NOI increased 1.2%, with a revenue increase of 1.8% and
expense growth of 2.7% compared to the same period in 2003. 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.
During the quarter, lease-ups were completed at Camden Oak Crest
in Houston, TX and Camden Sierra at Otay Ranch in Chula Vista, CA, and
the properties are currently 93% and 95% occupied, respectively. The
Company also completed construction at Camden Harbor View in Long
Beach, CA during the quarter, and that community is currently 69%
leased and 66% occupied. Construction continued on Camden Westwind in
Ashburn, VA, Camden Lee Vista II in Orlando, FL and Camden Farmers
Market II in Dallas, TX, with initial occupancies expected at all
three communities during early to mid-2005. Camden Westwind is being
developed in a joint venture format, with Camden retaining a 20%
ownership interest. In addition, construction recently began on an
additional phase at Camden Miramar in Corpus Christi, TX, which will
add 126 student housing units to the existing community in time for
the 2004 fall semester.
The Company also acquired two tracts of undeveloped land in the
Washington DC/Northern Virginia area during the quarter for
approximately $29 million. Pre-development activities are currently
underway on both sites, and Camden plans to develop two multifamily
communities containing 747 apartment homes on those sites in late 2004
or early 2005.
Subsequent to quarter-end, the Company issued $100 million of
senior unsecured notes under its existing shelf registration. These
five-year notes, rated Baa2 by Moody's and BBB by Standard & Poor's
and Fitch, were issued at 99.841% of par value with a coupon of 4.70%.
Interest on the notes is payable semi-annually on January 15 and July
15, and the notes will mature on July 15, 2009. The Company used the
net proceeds to reduce the balance outstanding under its unsecured
credit facility.
Camden expects 2004 FFO between $3.15 and $3.30 per diluted share
and 2004 EPS between $0.63 and $0.78 per diluted share, excluding any
future gains from potential property sales. For 2004, 11 research
analysts have contributed FFO estimates on CPT to First Call ranging
from $3.10 to $3.30 per diluted share, for a mean of $3.25 per diluted
share. The Company also provided guidance for the third quarter of
2004 of $0.75 to $0.80 per diluted share for FFO and $0.11 to $0.16
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, August 6, 2004
at 11:00 AM Central Time to review its second quarter results and
discuss its outlook for future performance. To participate in the
call, please dial (888) 482-0024 (domestic) or (617) 801-9702
(international) by 10:50 AM Central Time and request the Camden
Property Trust Second Quarter Earnings Call, Conference Passcode
#90094069, 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 145 properties containing 51,882 apartment homes in the
Sunbelt and Midwestern markets from Florida to California. Upon
completion of three properties under development and the expansion of
an existing property, the Company's portfolio will increase to 53,122
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
Web site at http://www.camdenliving.com.
CAMDEN OPERATING RESULTS
(In thousands, except per share
and property data amounts)
---------------------------------------------------------------------
(Unaudited) Three Months Ended Six Months Ended
June 30, June 30,
------------------- --------------------
OPERATING DATA 2004 2003 2004 2003
-------------- ------------------- --------------------
Revenues
Rental revenues $95,970 $91,600 $192,275 $181,701
Other property revenues 8,756 8,856 17,221 16,447
------------------- --------------------
Total property revenues 104,726 100,456 209,496 198,148
------------------- --------------------
Development and construction
fees 2,071 1,257 3,832 2,593
Management fees 425 431 845 865
Other revenues 1,801 1,033 6,082 2,645
------------------- --------------------
Total revenues 109,023 103,177 220,255 204,251
Expenses
Property operating and
maintenance 31,576 29,798 61,970 58,154
Real estate taxes 11,839 11,081 23,349 22,245
------------------- --------------------
Total property expenses 43,415 40,879 85,319 80,399
------------------- --------------------
Property management 2,742 2,424 5,611 4,961
Fee and asset management 1,006 1,068 1,995 2,631
General and administrative 4,140 4,437 8,326 8,048
Other expenses - 312 - 1,389
Interest 19,261 18,519 40,396 36,875
Amortization of deferred
financing costs 719 639 1,483 1,265
Depreciation 26,541 26,417 53,150 52,346
------------------- --------------------
Total expenses 97,824 94,695 196,280 187,914
------------------- --------------------
Income before gain on sale of
land, impairment loss on
land held for sale,
equity in income of joint
ventures and minority
interests 11,199 8,482 23,975 16,337
Gain on sale of land - 659 1,255 2,082
Impairment loss on land held
for sale - - (1,143) -
Equity in income of joint
ventures 67 505 166 3,148
Income allocated to minority
interests
Distributions on units
convertible into perpetual
preferred shares (2,843) (3,218) (5,686) (6,436)
Income allocated to units
convertible into common
shares (769) (520) (1,525) (889)
------------------- --------------------
Net income $7,654 $5,908 $17,042 $14,242
=================== ====================
FUNDS FROM OPERATIONS
---------------------
Net income $7,654 $5,908 $17,042 $14,242
Real estate depreciation 26,126 25,896 52,246 51,285
Adjustments for
unconsolidated joint
ventures 525 524 1,047 1,059
(Gain) on sale of
properties held in joint
ventures - (451) - (1,436)
Income allocated to units
convertible into common
shares 769 520 1,525 889
------------------- --------------------
Funds from operations -
diluted $35,074 $32,397 $71,860 $66,039
=================== ====================
PER SHARE DATA
--------------
Net income - basic $0.19 $0.15 $0.42 $0.36
Net income - diluted 0.18 0.14 0.40 0.35
Funds from operations -
diluted 0.79 0.75 1.63 1.54
Cash distributions 0.64 0.64 1.27 1.27
Weighted average number of
common and common
equivalent shares
outstanding:
Basic 40,291 39,218 40,161 39,191
Diluted 42,419 41,169 42,283 41,019
FFO - diluted 44,295 43,047 44,160 42,900
PROPERTY DATA
---------------------------
Total operating properties
(end of period) (a) 145 142 145 142
Total operating apartment
homes in operating
properties (end of
period) (a) 51,882 50,762 51,882 50,762
Total operating apartment
homes (weighted average) 47,013 46,218 46,962 46,065
(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.
CAMDEN BALANCE SHEETS
(In thousands)
---------------------------------------------------------------------
(Unaudited) Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,
2004 2004 2003 2003 2003
-------------------------------------------------------
ASSETS
Real estate
assets, at
cost
Land $406,626 $404,113 $400,490 $397,006 $396,527
Buildings and
improvements 2,573,099 2,538,193 2,499,214 2,462,252 2,437,833
-------------------------------------------------------
2,979,725 2,942,306 2,899,704 2,859,258 2,834,360
Accumulated
depreciation (653,581) (627,808) (601,688) (575,459) (549,769)
-------------------------------------------------------
Net operating
real estate
assets 2,326,144 2,314,498 2,298,016 2,283,799 2,284,591
Properties
under
development,
including
land 163,326 156,466 189,119 236,529 242,682
Investment in
joint
ventures 10,371 10,754 11,033 9,994 10,247
Land held
for sale 1,800 1,800 - - -
-------------------------------------------------------
Total real
estate
assets 2,501,641 2,483,518 2,498,168 2,530,322 2,537,520
Accounts
receivable -
affiliates 29,981 28,984 25,997 7,141 6,736
Notes receivable
Affiliates 9,665 9,335 9,017 - -
Other 48,333 41,685 41,416 24,289 21,314
Other assets,
net (a) 48,063 42,922 40,951 39,497 40,959
Cash and cash
equivalents 1,922 3,836 3,357 2,341 1,550
Restricted
cash 4,841 6,794 6,655 4,058 4,258
-------------------------------------------------------
Total
assets $2,644,446 $2,617,074 $2,625,561 $2,607,648 $2,612,337
=======================================================
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Liabilities
Notes payable
Unsecured $1,332,216 $1,291,074 $1,277,879 $1,248,852 $1,236,681
Secured 229,423 230,622 231,798 232,953 240,711
Accounts
payable 31,309 26,112 26,150 24,025 34,580
Accrued real
estate taxes 21,935 14,165 27,407 31,444 20,822
Accrued
expenses and
other
liabilities 43,957 54,397 50,111 51,266 44,226
Distributions
payable 31,038 30,974 30,946 30,698 30,663
-------------------------------------------------------
Total
liabilities 1,689,878 1,647,344 1,644,291 1,619,238 1,607,683
Commitments and
contingencies
Minority
interests
Units
convertible
into perpetual
preferred
shares 149,815 149,815 149,815 149,815 149,815
Units
convertible
into common
shares 44,884 45,711 46,570 47,382 48,354
-------------------------------------------------------
Total minority
interests 194,699 195,526 196,385 197,197 198,169
Shareholders'
equity
Common shares
of beneficial
interest 485 484 483 481 480
Additional
paid-in
capital 1,344,366 1,340,564 1,330,512 1,321,103 1,320,045
Distributions
in excess of
net income (333,416) (314,720) (297,808) (281,256) (261,577)
Unearned
restricted
share awards (15,384) (15,937) (11,875) (12,667) (15,477)
Treasury shares,
at cost (236,182) (236,187) (236,427) (236,448) (236,986)
-------------------------------------------------------
Total
shareholders'
equity 759,869 774,204 784,885 791,213 806,485
-------------------------------------------------------
Total
liabilities
and
shareholders'
equity $2,644,446 $2,617,074 $2,625,561 $2,607,648 $2,612,337
=======================================================
(a) includes
net deferred
charges of: $8,756 $9,313 $9,558 $8,691 $9,268
CAMDEN 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 of 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 Six Months Ended
June 30, June 30,
------------------ ----------------
2004 2003 (a) 2004 2003 (a)
------------------ ----------------
Net income $7,654 $5,908 $17,042 $14,242
Real estate depreciation 26,126 25,896 52,246 51,285
Adjustments for
unconsolidated joint
ventures 525 524 1,047 1,059
(Gain) on sale of properties
held in joint ventures - (451) - (1,436)
Income allocated to units
convertible into common
shares 769 520 1,525 889
------------------ ----------------
Funds from operations -
diluted $35,074 $32,397 $71,860 $66,039
================== ================
Weighted average number of
common and common equivalent
shares outstanding:
EPS diluted 42,419 41,169 42,283 41,019
FFO diluted 44,295 43,047 44,160 42,900
Net income per common share -
diluted $0.18 $0.14 $0.40 $0.35
FFO per common share - diluted $0.79 $0.75 $1.63 $1.54
(a) FFO for the three months ended and six months ended June 30, 2003
previously included a reduction of $0.7 million and $2.1 million
respectively 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:
3Q04 Range 2004 Range
Low High Low High
------------------ ----------------
Expected net income per share
- diluted $0.11 $0.16 $0.63 $0.78
Expected real estate
depreciation 0.61 0.61 2.42 2.42
Expected adjustments for
unconsolidated joint ventures 0.02 0.02 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 $0.75 $0.80 $3.15 $3.30
Note: This table contains forward-looking statements. Please see the
paragraph regarding forward-looking statements on preceding pages.
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 Six Months Ended
June 30, June 30,
------------------ ------------------
2004 2003 2004 2003
------------------ ------------------
Net income $7,654 $5,908 $17,042 $14,242
Development and construction
fees (2,071) (1,257) (3,832) (2,593)
Management fees (425) (431) (845) (865)
Other income (1,801) (1,033) (6,082) (2,645)
Property management expense 2,742 2,424 5,611 4,961
Fee and asset management
expense 1,006 1,068 1,995 2,631
General and administrative
expense 4,140 4,437 8,326 8,048
Other expenses - 312 - 1,389
Interest expense 19,261 18,519 40,396 36,875
Amortization of deferred
financing costs 719 639 1,483 1,265
Depreciation 26,541 26,417 53,150 52,346
Gain on sale of land - (659) (1,255) (2,082)
Impairment loss on land held
for sale - - 1,143 -
Equity in income of joint
ventures (67) (505) (166) (3,148)
Distributions on units
convertible into perpetual
preferred shares 2,843 3,218 5,686 6,436
Income allocated to units
convertible into common
shares 769 520 1,525 889
------------------ ------------------
Net Operating Income (NOI) $61,311 $59,577 $124,177 $117,749
"Same Property" net operating
income $56,797 $57,312 $114,899 $113,556
Non-"Same Property" net
operating income 3,661 2,167 7,696 4,085
Development and Lease-Up net
operating income 903 107 1,605 110
Dispositions / Other net
operating income (50) (9) (23) (2)
------------------ ------------------
Net Operating Income (NOI) $61,311 $59,577 $124,177 $117,749
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 Six Months Ended
June 30, June 30,
------------------ ------------------
2004 2003 2004 2003
------------------ ------------------
Net income $7,654 $5,908 $17,042 $14,242
Interest expense 19,261 18,519 40,396 36,875
Amortization of deferred
financing costs 719 639 1,483 1,265
Depreciation 26,541 26,417 53,150 52,346
Distributions on units
convertible into perpetual
preferred shares 2,843 3,218 5,686 6,436
Income allocated to units
convertible into common
shares 769 520 1,525 889
Gain on sale of land - (659) (1,255) (2,082)
Impairment loss on land held
for sale - - 1,143 -
Equity in income of joint
ventures (67) (505) (166) (3,148)
------------------ ------------------
EBITDA $57,720 $54,057 $119,004 $106,823
CONTACT: Camden Property Trust, Houston
Investor Relations
Kim Callahan, 800-922-6336 or 713-354-2787
http://www.camdenliving.com