EXHIBIT 99.1
Camden Property Trust Announces First Quarter 2005 Operating Results
HOUSTON--(BUSINESS WIRE)--May 5, 2005--Camden Property Trust
(NYSE:CPT) announced that its net income ("EPS") for the first quarter
of 2005 was $166.7 million or $3.40 per diluted share compared to $9.4
million or $0.22 per diluted share for the same period in 2004. EPS
for the three months ended March 31, 2005 included a $2.97 per diluted
share impact from gain on sale of properties and discontinued
operations, $0.49 per diluted share income from the sale of technology
investments, and a $0.28 per diluted share charge for transaction
compensation and merger expenses.
Funds From Operations ("FFO")
FFO for the first quarter of 2005 totaled $1.10 per diluted share
or $54.4 million, as compared to $0.84 per diluted share or $36.8
million reported for the same period in 2004. FFO for the three months
ended March 31, 2005 included a $0.49 per diluted share impact from
the sale of technology investments, and a $0.28 per diluted share
charge for transaction compensation and merger expenses. FFO for the
three months ended March 31, 2004 included income of $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 $0.02 per diluted
share associated with the sale of technology investments. A
reconciliation of net income to FFO is included in the financial
tables accompanying this press release.
Summit Merger
As previously announced, Camden completed its acquisition of
Summit Properties Inc. ("Summit") on February 28, 2005. The Company's
first quarter 2005 financial results reflect combined operations
beginning on the merger date.
Same-Property Results
For the 50,970 apartment homes included in consolidated
same-property results, first quarter 2005 same-property net operating
income ("NOI") growth was 0.0% compared to the first quarter of 2004,
with revenues increasing 1.1% and operating expenses increasing 2.7%.
On a sequential basis, first quarter 2005 same-property NOI increased
0.4% compared to fourth quarter 2004, with revenues increasing 0.8%
and expenses increasing 1.5% compared to the prior quarter.
Same-property physical occupancy levels for the combined portfolio
averaged 93.8% during the first quarter of 2005, compared to 94.2% in
the first quarter of 2004 and 93.5% in the fourth quarter of 2004.
For the 39,887 apartment homes included in Camden's same-property
results, first quarter 2005 revenues increased 0.5% while operating
expenses increased 3.4%, producing a 1.5% decline in same-property net
operating income ("NOI") compared to the first quarter of 2004. On a
sequential basis, first quarter 2005 same-property NOI increased 1.1%
compared to fourth quarter 2004, with revenues increasing 0.7% and
expenses increasing 0.2% compared to the prior quarter.
For the 11,083 same-property apartment homes acquired from Summit,
first quarter 2005 revenues increased 2.7% while operating expenses
increased 0.6%, producing a 3.8% increase in same-property net
operating income ("NOI") compared to the first quarter of 2004. On a
sequential basis, first quarter 2005 same-property NOI declined by
1.3% compared to fourth quarter 2004, with revenues increasing 1.0%
and expenses increasing 5.9% 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.
Development Activity
As of March 31, 2005, Camden had two completed apartment
communities in lease-up: Summit Las Olas in Fort Lauderdale, FL and
Summit Fallsgrove in Rockville, MD, which are currently 91% and 86%
leased, respectively. The Company continued construction during the
quarter on seven apartment communities (including one joint venture
community), four of which were originally Summit developments. Of
those projects, two are currently in lease-up: Camden Lago Vista in
Orlando, FL and Camden Westwind in Ashburn, VA (joint venture) are
currently 34% and 6% leased, respectively. The remaining five
communities under construction are expected to begin lease-ups later
in 2005.
Camden also announced three new development starts during the
quarter: Camden Old Creek in San Marcos, CA, with 350 apartment homes;
Camden Monument Place in Fairfax, VA, with 368 apartment homes; and
Camden Potomac Yards in Arlington County, VA, with 379 apartment
homes. Initial occupancy for the first two projects is expected to
occur in the second quarter of 2006, with Camden Potomac Yards opening
by the end of 2006.
Disposition Activity
During the quarter, Camden disposed of a 432-home apartment
community in Las Vegas, NV for $36.5 million. The Company also
contributed 12 communities containing 4,034 apartment homes (located
in Houston, TX, Dallas, TX, Las Vegas, NV, Phoenix, AZ and Orange
County, CA) for approximately $398 million to a recently formed joint
venture. (See press release dated March 21, 2005 for additional
details on the joint venture). At March 31, 2005, the Company had two
apartment communities located in Tampa, FL and Atlanta, GA designated
as held for sale. Subsequent to quarter-end, Camden sold the 454-home
apartment community in Tampa, FL for $61.5 million and expects to
complete the sale of the 431-home Atlanta apartment community during
the second quarter of 2005.
Earnings Guidance
The Company maintained earnings guidance for 2005 of FFO between
$3.39 and $3.59 per diluted share, and provided guidance for second
quarter 2005 FFO of $0.78 to $0.82 per diluted share. EPS is expected
to be between $0.33 and $0.37 per diluted share for the second quarter
of 2005, and between $3.20 and $3.40 for full-year 2005, excluding any
future gains from potential property or land sales. The 2005 guidance
is based on projections of same-property NOI growth between 1.0% and
3.0%, acquisitions of $200-$300 million, dispositions of $200-$300
million and future development starts of $200-$300 million. 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.
Conference Call
The Company will hold a conference call on Friday, May 6, 2005 at
10:00 a.m. Central Time to review its first quarter results and
discuss its outlook for future performance. To participate in the
call, please dial 800-510-9836 (domestic) or 617-614-3670
(international) by 9:50 a.m. Central Time and request the Camden
Property Trust First Quarter Earnings Call, Conference Passcode
#44829337, 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.
Forward-Looking Statements
In addition to historical information, this press release contains
forward-looking statements under the federal securities law. These
statements are based on current expectations, estimates and
projections about the industry and markets in which Camden operates,
management's beliefs, and assumptions made by management.
Forward-looking statements are not guarantees of future performance
and involve certain risks and uncertainties which are difficult to
predict.
About Camden
Camden Property Trust is a real estate company engaged in the
ownership, development, acquisition, management and disposition of
multifamily apartment communities. Camden owns interests in and
operates 191 properties containing 65,992 apartment homes across the
United States. Upon completion of ten properties under development,
the Company's portfolio will increase to 69,617 apartment homes in 201
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
March 31,
-----------------------------
OPERATING DATA 2005 (a) 2004
- -------------- -----------------------------
Property Revenues
Rental revenues $107,317 $93,654
Other property revenues 9,824 8,243
-----------------------------
Total property revenues 117,141 101,897
Property Expenses
Property operating and maintenance 34,194 29,461
Real estate taxes 13,193 11,181
-----------------------------
Total property expenses 47,387 40,642
Non-property income
Development, construction, and other
fees 7,306 2,181
Sale of technology investments 24,199 863
Other income 3,223 3,418
-----------------------------
Total non-property income 34,728 6,462
Other expenses
Property management 3,220 2,869
Fee and asset management 1,948 989
General and administrative 5,276 4,186
Transaction compensation and merger
expenses 13,824 -
Interest 23,501 21,135
Amortization of deferred financing costs 1,221 764
Depreciation and amortization 33,084 25,793
-----------------------------
Total other expenses 82,074 55,736
-----------------------------
Income from continuing operations before
gain on sale of properties, impairment
loss on land held for sale, equity in
income of joint ventures and minority
interests 22,408 11,981
Gain on sale of properties, including
land 132,128 1,255
Impairment loss on land held for sale - (1,143)
Equity in income of joint ventures 110 99
Income allocated to minority interests
Distributions on perpetual preferred
units (1,778) (2,843)
Original issuance costs on redeemed
perpetual preferred units (365) -
Income allocated to common units (1,145) (713)
-----------------------------
Income from continuing operations 151,358 8,636
Income from discontinued operations 926 795
Income from discontinued operations
allocated to common units - (43)
Gain on sale of discontinued
operations 14,380 -
-----------------------------
Net income $166,664 $9,388
=============================
PER SHARE DATA
- --------------
Net income - basic $3.63 $0.23
Net income - diluted 3.40 0.22
Income from continuing operations -
basic 3.30 0.21
Income from continuing operations -
diluted 3.09 0.20
Weighted average number of common and
common equivalent shares outstanding:
Basic 45,900 40,031
Diluted 49,374 42,146
PROPERTY DATA
- -------------
Total operating properties (end of
period) (b) 192 144
Total operating apartment homes in
operating properties (end of
period) (b) 66,446 51,344
Total operating apartment homes
(weighted average) 50,656 46,912
Total operating apartment homes -
excluding discontinued operations
(weighted average) 49,933 45,474
(a) The Company's 2005 financial results include the results of Summit
subsequent to February 28, 2005.
(b) Includes joint ventures and properties held for sale.
Note: Please refer to 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
March 31,
------------------------
FUNDS FROM OPERATIONS 2005 (a) 2004
--------------------- ------------------------
Net income $166,664 $9,388
Real estate depreciation and amortization
from continuing operations 32,458 25,304
Real estate depreciation from discontinued
operations - 816
Adjustments for unconsolidated joint
ventures 668 522
Income from continuing operations allocated
to common units 1,145 713
Income from discontinued operations
allocated to common units - 43
(Gain) on sale of operating properties (132,117) -
(Gain) on sale of discontinued operations (14,380) -
------------------------
Funds from operations - diluted $54,438 $36,786
========================
PER SHARE DATA
--------------
Funds from operations - diluted $1.10 $0.84
Cash distributions 0.64 0.64
Weighted average number of common and common
equivalent shares outstanding:
FFO - diluted 49,374 44,025
PROPERTY DATA
-------------
Total operating properties (end of period)
(b) 192 144
Total operating apartment homes in
operating properties (end of period) (b) 66,446 51,344
Total operating apartment homes (weighted
average) 50,656 46,912
Total operating apartment homes - excluding
discontinued operations (weighted average) 49,933 45,474
(a) The Company's 2005 financial results include the results of Summit
subsequent to February 28, 2005.
(b) Includes joint ventures and properties held for sale.
Note: Please refer to following pages for definitions and
reconciliations of all non-GAAP financial measures presented in
this document.
CAMDEN BALANCE SHEETS
(In thousands)
- ----------------------------------------------------------------------
(Unaudited) Mar 31, Dec 31, Sep 30,
2005 2004 2004
---------------------------------
ASSETS
Real estate assets, at cost
Land $655,321 $399,054 $406,760
Buildings and improvements 3,811,892 2,511,195 2,583,555
---------------------------------
4,467,213 2,910,249 2,990,315
Accumulated depreciation (658,683) (688,333) (680,184)
---------------------------------
Net operating real estate assets 3,808,530 2,221,916 2,310,131
Properties under development,
including land 348,202 176,769 174,351
Investment in joint ventures 38,107 9,641 10,076
Properties held for sale 70,449 62,418 1,800
---------------------------------
Total real estate assets 4,265,288 2,470,744 2,496,358
Accounts receivable - affiliates 33,587 31,380 30,434
Notes receivable
Affiliates 10,729 10,367 10,010
Other 32,274 44,547 53,599
Other assets, net (a) 95,941 66,164 49,804
Cash and cash equivalents 6,351 2,253 2,465
Restricted cash 5,835 3,909 4,259
---------------------------------
Total assets $4,450,005 $2,629,364 $2,646,929
=================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Notes payable
Unsecured $1,900,710 $1,407,208 $1,435,197
Secured 675,473 169,197 170,129
Accounts payable 54,975 31,904 28,794
Accrued real estate taxes 17,179 27,324 32,732
Accrued expenses and other
liabilities 131,155 65,237 48,192
Distributions payable 15,223 30,412 30,331
---------------------------------
Total liabilities 2,794,715 1,731,282 1,745,375
Commitments and contingencies
Minority interests
Perpetual preferred units 97,925 115,060 115,060
Common units 121,734 44,507 43,881
Other minority interests 9,880 - -
---------------------------------
Total minority interests 229,539 159,567 158,941
Shareholders' equity
Common shares of beneficial
interest 605 486 486
Additional paid-in capital 1,903,541 1,348,848 1,346,040
Distributions in excess of net
income (224,533) (361,973) (353,996)
Unearned restricted share awards (15,185) (13,023) (14,069)
Employee notes receivable (3,097) - -
Treasury shares, at cost (235,580) (235,823) (235,848)
---------------------------------
Total shareholders' equity 1,425,751 738,515 742,613
---------------------------------
Total liabilities and
shareholders' equity $4,450,005 $2,629,364 $2,646,929
=================================
(a) includes net deferred charges of: $13,386 $11,361 $8,917
(Unaudited) Jun 30, Mar 31,
2004 2004
---------------------------------
ASSETS
Real estate assets, at cost
Land $406,626 $404,113
Buildings and improvements 2,573,099 2,538,193
---------------------------------
2,979,725 2,942,306
Accumulated depreciation (653,581) (627,808)
---------------------------------
Net operating real estate assets 2,326,144 2,314,498
Properties under development,
including land 163,326 156,466
Investment in joint ventures 10,371 10,754
Properties held for sale 1,800 1,800
---------------------------------
Total real estate assets 2,501,641 2,483,518
Accounts receivable - affiliates 29,981 28,984
Notes receivable
Affiliates 9,665 9,335
Other 48,333 41,685
Other assets, net (a) 48,063 42,922
Cash and cash equivalents 1,922 3,836
Restricted cash 4,841 6,794
---------------------------------
Total assets $2,644,446 $2,617,074
=================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Notes payable
Unsecured $1,332,216 $1,291,074
Secured 229,423 230,622
Accounts payable 31,309 26,112
Accrued real estate taxes 21,935 14,165
Accrued expenses and other
liabilities 43,957 54,397
Distributions payable 31,038 30,974
---------------------------------
Total liabilities 1,689,878 1,647,344
Commitments and contingencies
Minority interests
Perpetual preferred units 149,815 149,815
Common units 44,884 45,711
Other minority interests - -
---------------------------------
Total minority interests 194,699 195,526
Shareholders' equity
Common shares of beneficial
interest 485 484
Additional paid-in capital 1,344,366 1,340,564
Distributions in excess of net
income (333,416) (314,720)
Unearned restricted share awards (15,384) (15,937)
Employee notes receivable - -
Treasury shares, at cost (236,182) (236,187)
---------------------------------
Total shareholders' equity 759,869 774,204
---------------------------------
Total liabilities and
shareholders' equity $2,644,446 $2,617,074
=================================
(a) includes net deferred charges of: $8,756 $9,313
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
March 31,
------------------
2005 2004
------------------
Net income $166,664 $9,388
Real estate depreciation and
amortization from continuing
operations 32,458 25,304
Real estate depreciation from
discontinued operations - 816
Adjustments for unconsolidated
joint ventures 668 522
Income from continuing
operations allocated to
common units 1,145 713
Income from discontinued
operations allocated to
common units - 43
(Gain) on sale of operating
properties (132,117) -
(Gain) on sale of discontinued
operations (14,380) -
------------------
Funds from operations -
diluted $54,438 $36,786
==================
Weighted average number of
common and common equivalent
shares outstanding:
EPS diluted 49,374 42,146
FFO diluted 49,374 44,025
Net income per common share -
diluted $3.40 $0.22
FFO per common share - diluted $1.10 $0.84
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:
2Q05 2005
Range Range
Low High Low High
----------------- ------------------
Expected net income per share -
diluted $0.33 $0.37 $3.20 $3.40
Expected real estate
depreciation 0.80 0.80 3.10 3.10
Expected adjustments for
unconsolidated joint ventures 0.02 0.02 0.08 0.08
Expected income allocated to
common units 0.00 0.00 0.00 0.00
Expected (gain) on sale of
properties and properties held
for sale (0.37) (0.37) (3.00) (3.00)
----------------- ------------------
Expected FFO per share - diluted $0.78 $0.82 $3.39 $3.59
Note: This table contains forward-looking statements. Please see
the paragraph regarding forward-looking statements earlier in this
document.
Net Operating Income (NOI)
- --------------------------
NOI is defined by the Company as total property income less property
operating and maintenance expenses less real estate taxes. The
Company considers NOI to be an appropriate supplemental measure of
operating performance to net income because it reflects the
operating performance of our communities without allocation of
corporate level property management overhead or general and
administrative costs. A reconciliation of net income to net
operating income is provided below:
Three Months Ended
March 31,
------------------
2005 2004
------------------
Net income $166,664 $9,388
Development, construction and
other fees (7,306) (2,181)
Sale of technology investments (24,199) (863)
Other income (3,223) (3,418)
Property management expense 3,220 2,869
Fee and asset management expense 1,948 989
General and administrative
expense 5,276 4,186
Transaction compensation and
merger expenses 13,824 -
Interest expense 23,501 21,135
Amortization of deferred
financing costs 1,221 764
Depreciation and amortization 33,084 25,793
Gain on sale of properties,
including land (132,128) (1,255)
Impairment loss on land held for
sale - 1,143
Equity in income of joint
ventures (110) (99)
Distributions on perpetual
preferred units 1,778 2,843
Original issuance costs on redeemed
perpetual preferred units 365 -
Income allocated to common units 1,145 713
Income from discontinued
operations (926) (795)
Income from discontinued operations
allocated to common units - 43
Gain on sale of discontinued
operations (14,380) -
------------------
Net Operating Income (NOI) $69,754 $61,255
CPT-"Same Property" Communities $50,979 $51,753
Summit-"Same Property"
Communities $7,272 $0
CPT Non-"Same Property"
Communities $4,362 $2,997
Summit Non-"Same Property"
Communities $1,090 $0
Development and Lease-Up
Communities $496 $0
Dispositions / Other $5,555 $6,505
------------------
Net Operating Income (NOI) $69,754 $61,255
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,
------------------
2005 2004
------------------
Net income $166,664 $9,388
Interest expense 23,501 21,135
Amortization of deferred
financing costs 1,221 764
Depreciation and amortization 33,084 25,793
Distributions on perpetual
preferred units 1,778 2,843
Original issuance costs on redeemed
perpetual preferred units 365 -
Income allocated to common units 1,145 713
Real estate depreciation from
discontinued operations - 816
Gain on sale of properties,
including land (132,128) (1,255)
Impairment loss on land held for
sale - 1,143
Equity in income of joint
ventures (110) (99)
Gain on sale of discontinued
operations (14,380) -
Minority interests from
discontinued operations - 43
------------------
EBITDA $81,140 $61,284
CONTACT: Camden Property Trust, Houston
Kim Callahan, 713-354-2549