Exhibit 99.1
Camden Property Trust Announces First Quarter 2007 Operating Results
HOUSTON--(BUSINESS WIRE)--April 26, 2007--Camden Property Trust
(NYSE:CPT) announced that its funds from operations ("FFO") for the
first quarter of 2007 totaled $0.89 per diluted share or $55.9
million, as compared to $0.88 per diluted share or $51.8 million
reported for the same period in 2006. The Company reported net income
("EPS") of $13.0 million or $0.22 per diluted share for the first
quarter of 2007 compared to $41.4 million or $0.75 per diluted share
for the same period in 2006. 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. A reconciliation of net income
to FFO is included in the financial tables accompanying this press
release.
Same-Property Results
For the 44,604 apartment homes included in consolidated
same-property results, first quarter 2007 same-property net operating
income ("NOI") growth was 5.5% compared to the first quarter of 2006,
with revenues increasing 5.1% and operating expenses increasing 4.4%.
On a sequential basis, first quarter 2007 same-property NOI increased
2.6% compared to fourth quarter 2006, with revenues increasing 1.6%
and expenses increasing 0.1% compared to the prior quarter.
Same-property physical occupancy levels for the portfolio averaged
94.4% during the first quarter of 2007, compared to 96.0% in the first
quarter of 2006 and 94.1% in the fourth quarter of 2006. The Company
defines same-property communities as communities owned by Camden and
stabilized as of January 1, 2006, excluding properties held for sale
and communities under redevelopment. 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, 2007, Camden had five completed apartment
communities in lease-up: Camden Clearbrook in Frederick, MD, a $46.0
million project that is currently 91% leased; Camden Manor Park in
Raleigh, NC, a $52.0 million project that is currently 87% leased;
Camden Westwind in Ashburn, VA, a $97.6 million project that is
currently 76% leased; Camden Old Creek in San Marcos, CA, a $98.0
million project that is currently 61% leased; and Camden Royal Oaks in
Houston, TX, a $22.0 million project that is currently 52% leased.
The Company's current development pipeline under construction
includes six wholly-owned communities comprising 2,046 apartment homes
with a total budgeted cost of $422.0 million. Camden also has five
joint venture communities under development comprising 1,528 apartment
homes with a total budgeted cost of $367.9 million.
The Company's future development pipeline currently consists of 16
potential developments comprising 5,368 apartment homes and a total
estimated cost of nearly $1.4 billion. The future pipeline represents
projects in the early phase of the development process for which
Camden either owns the land, has an option to acquire the land or
enter into a leasehold interest, or is the buyer under a long-term
conditional contract.
Acquisition/Disposition Activity
There was no acquisition or disposition activity during the first
quarter of 2007. Subsequent to quarter-end, the Company acquired
Camden South Congress, a 253-home apartment community in Austin, TX.
Properties and Land Held for Sale
At March 31, 2007, Camden had three operating communities
consisting of 930 apartment homes classified as held for sale: Camden
Downs, a 254-home apartment community in Louisville, KY; Camden
Taravue, a 304-home apartment community in St. Louis, MO; and Camden
Trace, a 372-home apartment community in St. Louis, MO. The Company
also had 5.7 acres of undeveloped land in Miami, FL, Boca Raton, FL
and Dallas, TX classified as held for sale at quarter-end.
Earnings Guidance
Camden maintained its earnings guidance for 2007 based on its
current and expected views of the apartment market and general
economic conditions. Full-year 2007 FFO is expected to be between
$3.60 and $3.90 per diluted share, and full-year 2007 EPS is expected
to be between $0.95 and $1.25 per diluted share. Second quarter 2007
earnings guidance is $0.88 to $0.92 per diluted share for FFO and
$0.21 to $0.25 per diluted share for EPS. Guidance for EPS excludes
potential future gains on the sale of operating properties. Camden
intends to update its earnings guidance to the market on a quarterly
basis.
The Company's 2007 earnings guidance is based on projections of
same-property NOI growth between 5.5% and 7.5%, acquisitions of $0 -
$100 million, dispositions of $175 - $450 million and new development
starts of $350 - $500 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, April 27, 2007
at 9:00 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) 407-0778 (domestic) or (201) 689-8565
(international) by 8:50 a.m. Central Time and request the Camden
Property Trust First Quarter 2007 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 188 properties containing 64,769 apartment homes across the
United States. Upon completion of 11 properties under development, the
Company's portfolio will increase to 68,343 apartment homes in 199
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 2007 2006
----------------------------------------------- ---------------------
Property revenues
Rental revenues $137,381 $133,255
Other property revenues 15,267 12,559
---------------------
Total property revenues 152,648 145,814
Property expenses
Property operating and maintenance 40,447 38,371
Real estate taxes 16,534 16,317
---------------------
Total property expenses 56,981 54,688
Non-property income
Fee and asset management 2,386 2,477
Interest and other income 1,562 753
Income on deferred compensation plans 2,306 50
---------------------
Total non-property income 6,254 3,280
Other expenses
Property management 4,728 4,226
Fee and asset management 1,620 1,366
General and administrative 8,054 7,414
Interest 27,908 31,037
Depreciation and amortization 40,321 36,681
Amortization of deferred financing costs 916 1,047
Expense on deferred compensation plans 2,306 50
---------------------
Total other expenses 85,853 81,821
---------------------
Income from continuing operations before gain
on sale of properties, equity in income of
joint ventures, minority interests and income
taxes 16,068 12,585
Gain on sale of properties, including land - 499
Equity in income of joint ventures 735 2,317
Minority interests:
Distributions on perpetual preferred units (1,750) (1,750)
Income allocated to common units and other
minority interests (904) (1,256)
---------------------
Income from continuing operations before income
taxes 14,149 12,395
Income tax expense (721) -
Income tax expense on sale of depreciable
operating properties (1,184) -
---------------------
Income from continuing operations 12,244 12,395
Income from discontinued operations 946 2,476
Gain on sale of discontinued operations - 27,392
Income from discontinued operations
allocated to common units (153) (820)
---------------------
Net income $13,037 $41,443
=====================
PER SHARE DATA
-----------------------------------------------
Net income - basic $0.22 $0.76
Net income - diluted 0.22 0.75
Income from continuing operations - basic 0.21 0.23
Income from continuing operations - diluted 0.21 0.23
Weighted average number of common and common
equivalent shares outstanding:
Basic 58,813 54,290
Diluted 59,994 55,474
PROPERTY DATA
-----------------------------------------------
Total operating properties (end of period)
(a) 187 187
Total operating apartment homes in operating
properties (end of period) (a) 64,516 64,384
Total operating apartment homes (weighted
average) 53,097 57,177
Total operating apartment homes - excluding
discontinued operations (weighted average) 52,167 53,448
(a) 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 2007 2006
------------------------------------------------ --------------------
Net income $13,037 $41,443
Real estate depreciation and amortization from
continuing operations 39,606 36,027
Real estate depreciation from discontinued
operations - 718
Adjustments for unconsolidated joint ventures 1,086 781
Income from continuing operations allocated to
common units 853 1,205
Income from discontinued operations allocated
to common units 153 820
(Gain) on sale of operating properties, net of
taxes 1,184 -
(Gain) on sale of discontinued operations - (27,392)
(Gain) on sale of joint venture properties - (1,763)
--------------------
Funds from operations - diluted $55,919 $51,839
====================
PER SHARE DATA
------------------------------------------------
Funds from operations - diluted $0.89 $0.88
Cash distributions 0.69 0.66
Weighted average number of common and common
equivalent shares outstanding:
FFO - diluted 63,021 58,988
PROPERTY DATA
------------------------------------------------
Total operating properties (end of period) (a) 187 187
Total operating apartment homes in operating
properties (end of period) (a) 64,516 64,384
Total operating apartment homes (weighted
average) 53,097 57,177
Total operating apartment homes - excluding
discontinued operations (weighted average) 52,167 53,448
(a) 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,
2007 2006 2006
---------------------------------
ASSETS
Real estate assets, at cost
Land $703,850 $693,312 $683,645
Buildings and improvements 4,108,955 4,036,286 3,988,031
---------------------------------
4,812,805 4,729,598 4,671,676
Accumulated depreciation (799,624) (762,011) (725,790)
---------------------------------
Net operating real estate assets 4,013,181 3,967,587 3,945,886
Properties under development,
including land 410,002 369,861 351,246
Investments in joint ventures 8,321 9,245 8,266
Properties held for sale, including
land 32,879 32,763 45,074
---------------------------------
Total real estate assets 4,464,383 4,379,456 4,350,472
Accounts receivable - affiliates 34,854 34,170 33,624
Notes receivable
Affiliates 43,507 41,478 31,037
Other 11,565 3,855 3,855
Other assets, net (a) 118,329 121,336 112,801
Cash and cash equivalents 1,470 1,034 8,061
Restricted cash 5,772 4,721 5,541
---------------------------------
Total assets $4,679,880 $4,586,050 $4,545,391
=================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Notes payable
Unsecured $1,897,865 $1,759,498 $1,693,106
Secured 568,731 571,478 587,347
Accounts payable and accrued expenses 110,486 124,834 120,566
Accrued real estate taxes 16,036 23,306 41,165
Other liabilities (b) 110,684 105,999 101,332
Distributions payable 45,137 43,068 43,056
---------------------------------
Total liabilities 2,748,939 2,628,183 2,586,572
Commitments and contingencies
Minority interests
Perpetual preferred units 97,925 97,925 97,925
Common units 102,217 115,280 116,776
Other minority interests 10,335 10,306 10,002
---------------------------------
Total minority interests 210,477 223,511 224,703
Shareholders' equity
Common shares of beneficial
interest 654 650 650
Additional paid-in capital 2,199,713 2,183,622 2,176,170
Distributions in excess of net
income (243,786) (213,665) (206,442)
Employee notes receivable (2,025) (2,036) (2,047)
Treasury shares, at cost (234,092) (234,215) (234,215)
---------------------------------
Total shareholders' equity 1,720,464 1,734,356 1,734,116
---------------------------------
Total liabilities and
shareholders' equity $4,679,880 $4,586,050 $4,545,391
=================================
(a) includes:
net deferred charges of: $9,724 $10,295 $11,155
value of in place leases of: $61 $242 $452
(b) includes:
deferred revenues of: $3,321 $3,875 $5,256
above/below market leases of: $8 $32 $80
distributions in excess of
investments in joint ventures
of: $18,805 $18,350 $18,044
(Unaudited) Jun 30, Mar 31,
2006 2006
----------------------
ASSETS
Real estate assets, at cost
Land $697,690 $664,219
Buildings and improvements 4,074,737 3,892,700
----------------------
4,772,427 4,556,919
Accumulated depreciation (786,208) (732,984)
----------------------
Net operating real estate assets 3,986,219 3,823,935
Properties under development,
including land 427,500 419,843
Investments in joint ventures 8,270 8,199
Properties held for sale, including
land 55,562 188,477
----------------------
Total real estate assets 4,477,551 4,440,454
Accounts receivable - affiliates 33,408 33,361
Notes receivable
Affiliates 23,327 22,531
Other 9,211 13,264
Other assets, net (a) 111,636 102,269
Cash and cash equivalents 49,700 1,256
Restricted cash 5,194 5,269
----------------------
Total assets $4,710,027 $4,618,404
======================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Notes payable
Unsecured $1,940,693 $2,118,403
Secured 620,592 623,250
Accounts payable and accrued expenses 117,301 116,215
Accrued real estate taxes 31,280 17,818
Other liabilities (b) 99,460 98,327
Distributions payable 43,031 40,612
----------------------
Total liabilities 2,852,357 3,014,625
Commitments and contingencies
Minority interests
Perpetual preferred units 97,925 97,925
Common units 106,217 113,034
Other minority interests 10,555 10,512
----------------------
Total minority interests 214,697 221,471
Shareholders' equity
Common shares of beneficial
interest 649 610
Additional paid-in capital 2,172,616 1,908,099
Distributions in excess of net
income (293,386) (289,482)
Employee notes receivable (2,035) (2,046)
Treasury shares, at cost (234,871) (234,873)
----------------------
Total shareholders' equity 1,642,973 1,382,308
----------------------
Total liabilities and
shareholders' equity $4,710,027 $4,618,404
======================
(a) includes:
net deferred charges of: $13,120 $14,079
value of in place leases of: $431 $1,156
(b) includes:
deferred revenues of: $4,408 $4,843
above/below market leases of: $13 $51
distributions in excess of
investments in joint ventures
of: $12,701 $11,556
CAMDEN NON-GAAP FINANCIAL MEASURES
DEFINITIONS & RECONCILIATIONS
(In thousands, except per share amounts)
---------------------------------------------------------------------
(Unaudited)
This document contains certain non-GAAP financial measures 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,
------------------
2007 2006
------------------
Net income $13,037 $41,443
Real estate depreciation and
amortization from continuing
operations 39,606 36,027
Real estate depreciation from
discontinued operations - 718
Adjustments for
unconsolidated joint
ventures 1,086 781
Income from continuing
operations allocated to
common units 853 1,205
Income from discontinued
operations allocated to
common units 153 820
(Gain) on sale of operating
properties, net of taxes 1,184 -
(Gain) on sale of
discontinued operations - (27,392)
(Gain) on sale of joint
venture properties - (1,763)
------------------
Funds from operations -
diluted $55,919 $51,839
==================
Weighted average number of
common and common equivalent
shares outstanding:
EPS diluted 59,994 55,474
FFO diluted 63,021 58,988
Net income per common share -
diluted $0.22 $0.75
FFO per common share - diluted $0.89 $0.88
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:
2Q07 Range 2007 Range
Low High Low High
------------------ ------------------
Expected net income per share -
diluted $0.21 $0.25 $0.95 $1.25
Expected difference between EPS
and fully diluted FFO shares (0.01) (0.01) (0.05) (0.05)
Expected real estate
depreciation 0.64 0.64 2.53 2.53
Expected adjustments for
unconsolidated joint ventures 0.02 0.02 0.06 0.06
Expected income allocated to
common units 0.02 0.02 0.09 0.09
Expected (gain) on sale of
properties held in joint
ventures 0.00 0.00 0.00 0.00
Expected (gain) on sale of
properties and properties held
for sale 0.00 0.00 0.02 0.02
------------------ ------------------
Expected FFO per share -
diluted $0.88 $0.92 $3.60 $3.90
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,
------------------
2007 2006
------------------
Net income $13,037 $41,443
Fee and asset management (2,386) (2,477)
Interest and other income (1,562) (753)
Income on deferred compensation plans (2,306) (50)
Property management expense 4,728 4,226
Fee and asset management expense 1,620 1,366
General and administrative expense 8,054 7,414
Interest expense 27,908 31,037
Depreciation and amortization 40,321 36,681
Amortization of deferred financing costs 916 1,047
Expense on deferred compensation plans 2,306 50
Gain on sale of properties, including land - (499)
Equity in income of joint ventures (735) (2,317)
Distributions on perpetual preferred units 1,750 1,750
Income allocated to common units and other
minority interests 904 1,256
Income tax expense 721 -
Income tax expense on sale of depreciable operating
properties 1,184 -
Income from discontinued operations (946) (2,476)
Gain on sale of discontinued operations - (27,392)
Income from discontinued operations allocated to
common units 153 820
------------------
Net Operating Income (NOI) $95,667 $91,126
"Same Property" Communities $80,426 $76,212
Non-"Same Property" Communities 7,288 4,869
Development and Lease-Up Communities 2,424 308
Redevelopment Communities 4,919 4,946
Dispositions / Other 610 4,791
------------------
Net Operating Income (NOI) $95,667 $91,126
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,
------------------
2007 2006
------------------
Net income $13,037 $41,443
Interest expense 27,908 31,037
Amortization of deferred financing costs 916 1,047
Depreciation and amortization 40,321 36,681
Distributions on perpetual preferred units 1,750 1,750
Income allocated to common units and other
minority interests 904 1,256
Income tax expense 721 -
Income tax expense on sale of depreciable operating
properties 1,184 -
Real estate depreciation from discontinued
operations - 718
Gain on sale of properties, including land - (499)
Equity in income of joint ventures (735) (2,317)
Gain on sale of discontinued operations - (27,392)
Income from discontinued operations allocated to
common units 153 820
------------------
EBITDA $86,159 $84,544
CONTACT: Camden Property Trust, Houston
Kim Callahan, 713-354-2549