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