EXHIBIT 99.1
Camden Property Trust Announces First
Quarter 2006 Operating Results
HOUSTON--(BUSINESS WIRE)--May 4, 2006--Camden Property Trust
(NYSE:CPT) announced that its funds from operations ("FFO") for the
first quarter of 2006 totaled $0.88 per diluted share or $51.8
million, as compared to $1.10 per diluted share or $54.4 million
reported for the same period in 2005. 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.
Net Income ("EPS")
The Company reported net income ("EPS") of $41.4 million or $0.75
per diluted share for the first quarter of 2006 compared to $166.7
million or $3.40 per diluted share for the same period in 2005. EPS
for the three months ended March 31, 2006 included a $0.50 per diluted
share impact from gain on sale of properties and discontinued
operations. 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. A reconciliation of net
income to FFO is included in the financial tables accompanying this
press release.
Same-Property Results
For the 49,557 apartment homes included in consolidated
same-property results, first quarter 2006 same-property net operating
income ("NOI") growth was 10.2% compared to the first quarter of 2005,
with revenues increasing 8.3% and operating expenses increasing 5.4%.
On a sequential basis, first quarter 2006 same-property NOI increased
3.7% compared to fourth quarter 2005, with revenues increasing 2.2%
and expenses declining 0.1% compared to the prior quarter.
Same-property physical occupancy levels for the combined portfolio
averaged 96.0% during the first quarter of 2006, compared to 93.8% in
the first quarter of 2005 and 96.2% in the fourth quarter of 2005. The
Company defines same-property communities as communities owned by
either Camden or Summit Properties Inc. ("Summit") and stabilized as
of January 1, 2005, excluding properties held for sale. 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
Camden announced two new development starts during the quarter:
Camden City Centre in Houston, TX, with 379 apartment homes; and
Camden Dulles Station in Herndon, VA, with 368 apartment homes. Total
budgeted costs for those projects are $54.0 million and $77.0 million,
respectively, with initial occupancy expected to occur in mid- to
late-2007. The Company also announced the start of two new joint
venture developments: Camden Main & Jamboree in Irvine, CA, a $107.1
million community with 290 apartment homes; and Camden Plaza in
Houston, TX, a $42.9 million community with 271 apartment homes. (See
press release dated March 3, 2006 for additional information on these
joint venture developments).
As of March 31, 2006, Camden had one completed apartment community
in lease-up: Camden Farmers Market II in Dallas, TX, a $29.5 million
project that is currently 87% leased. The Company's current
development pipeline includes 11 wholly-owned communities with 3,958
apartment homes and a total budgeted cost of $719.6 million, and two
joint venture communities with 561 apartment homes and a total
budgeted cost of $150.0 million. Of those 13 communities, five are
currently in lease-up. Camden Dilworth in Charlotte, NC is currently
61% leased; Camden Fairfax Corner in Fairfax, VA is currently 54%
leased; Camden Westwind in Ashburn, VA is currently 46% leased; Camden
Manor Park in Raleigh, NC is currently 31% leased; and Camden
Clearbrook in Frederick, MD is currently 4% leased.
Acquisition/Disposition Activity
During the quarter, Camden acquired the remaining joint venture
membership interest in Camden Westwind, a 464-home apartment community
under development in Ashburn, VA. Total budgeted cost for Camden
Westwind is projected to be $97.6 million when construction is
completed.
Dispositions for the quarter included two wholly-owned apartment
communities: Camden Highlands, a 160-home apartment community in
Plano, TX for $9.7 million, and Camden View, a 365-home apartment
community in Tucson, AZ for $31.3 million. Gain on sale of those two
properties totaled $27.4 million. The Company also sold two joint
venture communities during the quarter for a combined total of $47.5
million. Camden's pro-rata share of those dispositions totaled $11.9
million, and the Company recognized a $1.8 million gain as a result of
the sales.
Properties and Land Held for Sale
At March 31, 2006, Camden had eight operating communities
consisting of 3,691 apartment homes classified as held for sale. These
properties included: Camden Live Oaks, a 770-home apartment community
in Tampa, FL; Camden Trails, a 264-home apartment community in Dallas,
TX; Camden Oaks, a 446-home apartment community in Dallas, TX; Camden
Pass, a 456-home apartment community in Tucson, AZ; Camden Crossing, a
366-home apartment community in Houston, TX; Camden Wilshire, a
536-home apartment community in Houston, TX; Camden Wyndham, a
448-home apartment community in Houston, TX; and Summit Brickell, a
405-home apartment community in Miami, FL. The Company also had 13.9
acres of undeveloped land in Southeast Florida, Dallas, TX and Long
Beach, CA classified as held for sale at quarter-end. Subsequent to
quarter-end, the Company disposed of Camden Trails for $8.8 million
and Camden Pass for $20.3 million.
Earnings Guidance
Camden raised its earnings guidance for 2006 FFO by $0.05 per
diluted share. Full-year 2006 FFO is now expected to be $3.50 to $3.70
per diluted share. The Company also provided guidance of $0.85 to
$0.90 per diluted share for second quarter 2006 FFO. EPS is expected
to be $1.35 to $1.55 per diluted share for full-year 2006, and $0.19
to $0.24 per diluted share for the second quarter of 2006, excluding
any future gains from property or land sales.
The Company's 2006 earnings guidance is based on projections of
same-property revenue growth between 5.0% and 6.0%, same-property
expense growth between 4.5% and 5.5%, same-property NOI growth between
5.0% and 7.0%, acquisitions of $100 to $200 million, dispositions of
$275 to $400 million and future development starts of $200 to $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 5, 2006 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 877-407-0782 (domestic) or 201-689-8567
(international) by 9:50 a.m. Central Time and request the Camden
Property Trust First Quarter 2006 Earnings Call, or join the live
webcast of the conference call by accessing the Investor Relations
section of the Company's website at www.camdenliving.com. Supplemental
financial information is available in the Investor Relations section
of the Company's website under Earnings Releases or by calling
Camden's Investor Relations Department at 800-922-6336.
Forward-Looking Statements
In addition to historical information, this press release contains
forward-looking statements under the federal securities law. These
statements are based on current expectations, estimates and
projections about the industry and markets in which Camden operates,
management's beliefs, and assumptions made by management.
Forward-looking statements are not guarantees of future performance
and involve certain risks and uncertainties which are difficult to
predict.
About Camden
Camden Property Trust is a real estate company engaged in the
ownership, development, acquisition, management and disposition of
multifamily apartment communities. Camden owns interests in and
operates 185 properties containing 63,664 apartment homes across the
United States. Upon completion of 13 properties under development, the
Company's portfolio will increase to 68,183 apartment homes in 198
properties.
For additional information, please contact Camden's Investor
Relations Department at 800-922-6336 or 713-354-2787 or access our
website at www.camdenliving.com.
CAMDEN OPERATING RESULTS
(In thousands, except per share and property data amounts)
- ----------------------------------------------------------------------
(Unaudited) Three Months Ended
March 31,
-------------------------
OPERATING DATA 2006 2005 (a)
- -------------- -------------------------
Property revenues
Rental revenues $131,426 $100,687
Other property revenues 12,410 9,162
-------------------------
Total property revenues 143,836 109,849
Property expenses
Property operating and maintenance 38,077 31,521
Real estate taxes 15,750 12,219
-------------------------
Total property expenses 53,827 43,740
Non-property income
Fee and asset management 2,477 7,306
Sale of technology investments - 24,199
Interest and other income 753 3,223
Income on deferred compensation plans 50 23
-------------------------
Total non-property income 3,280 34,751
Other expenses
Property management 4,226 3,220
Fee and asset management 1,366 1,948
General and administrative 7,414 5,276
Transaction compensation and merger expenses - 13,824
Interest 31,037 23,501
Depreciation and amortization 37,053 30,855
Amortization of deferred financing costs 1,047 1,221
Expense on deferred compensation plans 50 23
-------------------------
Total other expenses 82,193 79,868
-------------------------
Income from continuing operations before gain
on sale of properties, equity in income of
joint ventures and minority interests 11,096 20,992
Gain on sale of properties, including land 499 132,117
Equity in income of joint ventures 2,317 110
Income allocated to minority interests
Distributions on perpetual preferred units (1,750) (1,778)
Original issuance costs on redeemed perpetual
preferred units - (365)
Income allocated to common units and other
minority interests (1,279) (1,131)
-------------------------
Income from continuing operations 10,883 149,945
Income from discontinued operations 3,965 2,342
Gain on sale of discontinued operations 27,392 14,391
Income from discontinued operations
allocated to common units (797) (14)
-------------------------
Net income $41,443 $166,664
=========================
PER SHARE DATA
- --------------
Net income - basic $0.76 $3.63
Net income - diluted 0.75 3.40
Income from continuing operations - basic 0.20 3.27
Income from continuing operations - diluted 0.20 3.06
Weighted average number of common and
common equivalent shares outstanding:
Basic 54,290 45,900
Diluted 55,474 49,374
PROPERTY DATA
- -------------
Total operating properties (end of period)(b) 187 192
Total operating apartment homes in
operating properties (end of period)(b) 64,384 66,446
Total operating apartment homes (weighted
average) 57,177 50,656
Total operating apartment homes - excluding
discontinued operations (weighted average) 53,203 45,987
(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 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
March 31,
-------------------------
FUNDS FROM OPERATIONS 2006 2005 (a)
- --------------------- -------------------------
Net income $41,443 $166,664
Real estate depreciation and amortization
from continuing operations 36,399 30,229
Real estate depreciation from discontinued
operations 346 2,229
Adjustments for unconsolidated joint
ventures 781 668
Income from continuing operations allocated
to common units 1,228 1,131
Income from discontinued operations
allocated to common units 797 14
(Gain) on sale of operating properties - (132,117)
(Gain) on sale of discontinued operations (27,392) (14,380)
(Gain) on sale of joint venture properties (1,763) -
-------------------------
Funds from operations - diluted $51,839 $54,438
=========================
PER SHARE DATA
- --------------
Funds from operations - diluted $0.88 $1.10
Cash distributions 0.66 0.64
Weighted average number of common and
common equivalent shares outstanding:
FFO - diluted 58,988 49,374
PROPERTY DATA
- -------------
Total operating properties (end of period)
(b) 187 192
Total operating apartment homes in
operating properties (end of period)(b) 64,384 66,446
Total operating apartment homes (weighted
average) 57,177 50,656
Total operating apartment homes - excluding
discontinued operations (weighted average) 53,203 45,987
(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 the 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,
2006 2005 2005
---------------------------------
ASSETS
Real estate assets, at cost
Land $664,219 $646,854 $660,748
Buildings and improvements 3,892,700 3,840,969 3,881,682
---------------------------------
4,556,919 4,487,823 4,542,430
Accumulated depreciation (732,984) (716,650) (713,991)
---------------------------------
Net operating real estate assets 3,823,935 3,771,173 3,828,439
Properties under development,
including land 419,843 372,976 377,787
Investment in joint ventures 8,199 6,096 6,937
Properties held for sale 188,477 172,112 51,741
---------------------------------
Total real estate assets 4,440,454 4,322,357 4,264,904
Accounts receivable - affiliates 33,361 34,084 35,313
Notes receivable
Affiliates 22,531 11,916 11,505
Other 13,264 13,261 24,865
Other assets, net (a) 102,269 99,516 100,080
Cash and cash equivalents 1,256 1,576 1,076
Restricted cash 5,269 5,089 5,829
---------------------------------
Total assets $4,618,404 $4,487,799 $4,443,572
=================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Notes payable
Unsecured $2,118,403 $2,007,164 $1,903,094
Secured 623,250 625,927 661,723
Accounts payable and accrued expenses 116,215 108,979 102,231
Accrued real estate taxes 17,818 26,070 39,740
Other liabilities (b) 98,327 88,811 84,835
Distributions payable 40,612 38,922 38,933
---------------------------------
Total liabilities 3,014,625 2,895,873 2,830,556
Commitments and contingencies
Minority interests
Perpetual preferred units 97,925 97,925 97,925
Common units 113,034 112,637 115,190
Other minority interests 10,512 10,461 10,425
---------------------------------
Total minority interests 221,471 221,023 223,540
Shareholders' equity
Common shares of beneficial
interest 610 608 607
Additional paid-in capital 1,908,099 1,902,595 1,899,713
Distributions in excess of net
income (289,482) (295,074) (273,609)
Employee notes receivable (2,046) (2,078) (2,087)
Treasury shares, at cost (234,873) (235,148) (235,148)
---------------------------------
Total shareholders' equity 1,382,308 1,370,903 1,389,476
---------------------------------
Total liabilities and
shareholders' equity $4,618,404 $4,487,799 $4,443,572
=================================
(a) includes:
net deferred charges of: $14,079 $13,061 $13,757
value of in place leases of: $1,156 $1,363 $10,561
(b) includes:
deferred revenues of: $3,844 $994 $1,120
above/below market leases of: $51 $90 $889
distributions in excess of
investments in joint ventures
of: $17,692 $17,407 $19,762
(Unaudited) Jun 30, Mar 31,
2005 2005
----------------------
ASSETS
Real estate assets, at cost
Land $657,433 $655,321
Buildings and improvements 3,839,732 3,810,003
----------------------
4,497,165 4,465,324
Accumulated depreciation (694,120) (658,683)
----------------------
Net operating real estate assets 3,803,045 3,806,641
Properties under development, including land 368,022 348,202
Investment in joint ventures 11,830 11,985
Properties held for sale 39,930 72,338
----------------------
Total real estate assets 4,222,827 4,239,166
Accounts receivable - affiliates 35,084 33,587
Notes receivable
Affiliates 11,108 10,729
Other 32,283 32,274
Other assets, net (a) 101,475 95,941
Cash and cash equivalents 6,432 6,351
Restricted cash 6,375 5,835
----------------------
Total assets $4,415,584 $4,423,883
======================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Notes payable
Unsecured $1,860,107 $1,900,710
Secured 672,557 675,473
Accounts payable and accrued expenses 104,216 101,576
Accrued real estate taxes 29,510 17,179
Other liabilities (b) 62,753 58,432
Distributions payable 39,513 15,223
----------------------
Total liabilities 2,768,656 2,768,593
Commitments and contingencies
Minority interests
Perpetual preferred units 97,925 97,925
Common units 118,119 121,734
Other minority interests 9,878 9,880
----------------------
Total minority interests 225,922 229,539
Shareholders' equity
Common shares of beneficial interest 606 605
Additional paid-in capital 1,895,018 1,888,356
Distributions in excess of net income (236,954) (224,533)
Employee notes receivable (2,084) (3,097)
Treasury shares, at cost (235,580) (235,580)
----------------------
Total shareholders' equity 1,421,006 1,425,751
----------------------
Total liabilities and shareholders' equity $4,415,584 $4,423,883
======================
(a) includes:
net deferred charges of: $14,266 $13,386
value of in place leases of: $18,995 $29,186
(b) includes:
deferred revenues of: $1,250 $1,704
above/below market leases of: $1,675 $2,537
distributions in excess of investments in
joint ventures of: $8,496 $7,971
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 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,
------------------------
2006 2005
------------------------
Net income $41,443 $166,664
Real estate depreciation and amortization
from continuing operations 36,399 30,229
Real estate depreciation from discontinued
operations 346 2,229
Adjustments for unconsolidated joint
ventures 781 668
Income from continuing operations allocated
to common units 1,228 1,131
Income from discontinued operations
allocated to common units 797 14
(Gain) on sale of operating properties - (132,117)
(Gain) on sale of discontinued operations (27,392) (14,380)
(Gain) on sale of joint venture properties (1,763) -
------------------------
Funds from operations - diluted $51,839 $54,438
========================
Weighted average number of common and common
equivalent shares outstanding:
EPS diluted 55,474 49,374
FFO diluted 58,988 49,374
Net income per common share - diluted $0.75 $3.40
FFO per common share - diluted $0.88 $1.10
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:
2Q06 Range 2006 Range
Low High Low High
------------------ ------------------
Expected net income per share
- diluted $0.19 $0.24 $1.35 $1.55
Expected real estate
depreciation 0.62 0.62 2.48 2.48
Expected adjustments for
unconsolidated joint ventures 0.01 0.01 0.05 0.05
Expected income allocated to
common units 0.02 0.02 0.11 0.11
Expected (gain) on sale of
properties held in joint
ventures 0.00 0.00 (0.03) (0.03)
Expected (gain) on sale of
properties and properties
held for sale 0.00 0.00 (0.46) (0.46)
------------------ ------------------
Expected FFO per share -
diluted $0.85 $0.90 $3.50 $3.70
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,
------------------------
2006 2005
------------------------
Net income $41,443 $166,664
Fee and asset management (2,477) (7,306)
Sale of technology investments - (24,199)
Interest and other income (753) (3,223)
Income on deferred compensation plans (50) (23)
Property management expense 4,226 3,220
Fee and asset management expense 1,366 1,948
General and administrative expense 7,414 5,276
Transaction compensation and merger expenses - 13,824
Interest expense 31,037 23,501
Depreciation and amortization 37,053 30,855
Amortization of deferred financing costs 1,047 1,221
Expense on deferred compensation plans 50 23
Gain on sale of properties, including land (499) (132,117)
Equity in income of joint ventures (2,317) (110)
Distributions on perpetual preferred units 1,750 1,778
Original issuance costs on redeemed perpetual
preferred units - 365
Income allocated to common units and other
minority interests 1,279 1,131
Income from discontinued operations (3,965) (2,342)
Gain on sale of discontinued operations (27,392) (14,391)
Income from discontinued operations allocated
to common units 797 14
------------------------
Net Operating Income (NOI) $90,009 $66,109
"Same Property" Communities $80,451 $56,892
Non-"Same Property" Communities 7,953 3,507
Development and Lease-Up Communities 1,095 -
Dispositions / Other 510 5,710
------------------------
Net Operating Income (NOI) $90,009 $66,109
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,
------------------------
2006 2005
------------------------
Net income $41,443 $166,664
Interest expense 31,037 23,501
Amortization of deferred financing costs 1,047 1,221
Depreciation and amortization 37,053 30,855
Distributions on perpetual preferred units 1,750 1,778
Original issuance costs on redeemed perpetual
preferred units - 365
Income allocated to common units and other
minority interests 1,279 1,131
Real estate depreciation from discontinued
operations 346 2,229
Gain on sale of properties, including land (499) (132,117)
Equity in income of joint ventures (2,317) (110)
Gain on sale of discontinued operations (27,392) (14,391)
Income from discontinued operations allocated
to common units 797 14
------------------------
EBITDA $84,544 $81,140
CONTACT: Camden Property Trust
Kim Callahan, 713-354-2549