Camden Property Trust Announces 2012 Operating Results, 12.5% Dividend Increase and 2013 Financial Outlook
Camden Property Trust (NYSE:CPT) today announced operating results for
the three and twelve months ended December 31, 2012.
Funds from Operations (“FFO”)
FFO for the fourth quarter of 2012 totaled $0.97 per diluted share or
$85.9 million, as compared to $0.84 per diluted share or $64.3 million
for the same period in 2011. FFO for the twelve months ended December
31, 2012 totaled $3.62 per diluted share or $313.3 million, as compared
to $2.73 per diluted share or $207.5 million for the same period in 2011.
FFO for the twelve months ended December 31, 2012 included a $2.1
million or $0.02 per diluted share charge related to the redemption of
perpetual preferred operating partnership units. FFO for the twelve
months ended December 31, 2011 included: a $0.40 per diluted share
charge related to a $29.8 million loss on discontinuation of a hedging
relationship of an interest rate swap and $0.5 million write-off of
unamortized loan costs related to the payoff of a term loan; a $4.7
million or $0.06 per diluted share gain on sale of undeveloped land; and
a net $3.3 million or $0.04 per diluted share gain on sale of an
available-for-sale investment.
Net Income Attributable to Common Shareholders
(“EPS”)
The Company reported EPS of $142.2 million or $1.60 per diluted share
for the fourth quarter of 2012, as compared to $46.8 million or $0.62
per diluted share for the same period in 2011. EPS for the three months
ended December 31, 2012 included: a $17.2 million or $0.20 per diluted
share gain on acquisition of controlling interests in joint ventures; an
$82.5 million or $0.94 per diluted share gain on sale of discontinued
operations; and a $14.5 million or $0.17 per diluted share gain on sale
of unconsolidated joint venture properties. EPS for the three months
ended December 31, 2011 included a $24.6 million or $0.33 per diluted
share gain on sale of discontinued operations, and a $6.4 million or
$0.09 per diluted share gain on sale of unconsolidated joint venture
properties.
For the twelve months ended December 31, 2012, Camden reported net
income attributable to common shareholders of $283.4 million or $3.30
per diluted share, as compared to $49.4 million or $0.66 per diluted
share for the same period in 2011. EPS for the twelve months ended
December 31, 2012 included: a $57.4 million or $0.67 per diluted share
gain on acquisition of controlling interests in joint ventures; a $115.1
million or $1.34 per diluted share gain on sale of discontinued
operations; a $17.4 million or $0.20 per diluted share gain on sale of
unconsolidated joint venture properties; and a $2.1 million or $0.02 per
diluted share charge related to the redemption of perpetual preferred
operating partnership units. EPS for the twelve months ended December
31, 2011 included: a $24.6 million or $0.34 per diluted share gain on
sale of discontinued operations; a $6.4 million or $0.09 per diluted
share gain on sale of unconsolidated joint venture properties; a $0.41
per diluted share charge related to a $29.8 million loss on
discontinuation of a hedging relationship of an interest rate swap and
$0.5 million write-off of unamortized loan costs related to the payoff
of a term loan; a $4.7 million or $0.06 per diluted share gain on sale
of undeveloped land; a net $3.3 million or $0.05 per diluted share gain
on sale of an available-for-sale investment; and a $1.1 million or $0.02
per diluted share gain on sale of unconsolidated joint venture interests.
A reconciliation of net income attributable to common shareholders to
FFO is included in the financial tables accompanying this press release.
Same-Property Results
For the 44,774 apartment homes included in consolidated same-property
results, fourth quarter 2012 same-property net operating income (“NOI”)
increased 8.0% compared to the fourth quarter of 2011, with revenues
increasing 6.6% and expenses increasing 4.1%. On a sequential basis,
fourth quarter 2012 same-property NOI increased 1.7% compared to the
third quarter of 2012, with revenues up slightly and expenses declining
2.8% compared to the prior quarter. On a full-year basis, 2012
same-property NOI increased 9.2%, with revenues increasing 6.5% and
expenses increasing 2.2% compared to the same period in 2011.
Same-property physical occupancy levels for the combined portfolio
averaged 95.1% during the fourth quarter of 2012, compared to 94.6% in
the fourth quarter of 2011 and 95.6% in the third quarter of 2012.
The Company defines same-property communities as communities owned and
stabilized as of January 1, 2011, excluding properties held for sale and
communities under major 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.
Acquisition Activity
During the fourth quarter, Camden acquired three communities with 839
apartment homes for a total of $145.0 million: Camden Montierra, a
249-home apartment community in Scottsdale, AZ; Camden San Marcos, a
320-home apartment community in Scottsdale, AZ; and Camden Belleview
Station, a 270-home apartment community in Denver, CO. The Company also
purchased the remaining 50% ownership interest in an unconsolidated
joint venture for approximately $15.9 million and assumed approximately
$26.2 million in mortgage debt. The Company now owns 100% of Camden
Denver West, a 320-home apartment community located in Denver, CO.
In addition, Camden acquired 2.4 acres of land in Plantation, FL and 3.5
acres of land in Charlotte, NC during the fourth quarter for future
development of two multifamily communities.
Disposition Activity
The Company disposed of eight wholly-owned communities with 2,180
apartment homes during the quarter for a total of $177.6 million. The
eight communities had an average age of 19 years and were located in
Houston, Austin, Dallas, Atlanta, Charlotte and Philadelphia. Camden
also sold six joint venture communities with 2,153 apartment homes
during the quarter for a total of $178.5 million. The six joint venture
communities had an average age of 25 years and were located in Atlanta,
St. Louis and Kansas City, MO.
Subsequent to quarter-end, the Company disposed of an additional
wholly-owned community. Camden Live Oaks, a 770-home apartment community
in Tampa, FL with an age of 23 years was sold for approximately $63.4
million.
Development Activity
Lease-up was completed during the quarter at Camden Westchase Park, a
348-home project in Tampa, FL which is currently 97% occupied. Leasing
continued at Camden Royal Oaks II, a 104-home project in Houston, TX,
which is currently 81% leased; and Camden Town Square, a 438-home
project in Orlando, FL which completed construction during the quarter
and is currently 72% leased.
Construction began during the quarter at three communities: Camden
Glendale, in Glendale, CA, a $115 million project with 303 apartment
homes; Camden Boca Raton in Boca Raton, FL, a $54 million project with
261 apartment homes; and Camden Paces in Atlanta, GA, a $110 million
project with 379 apartment homes.
Construction continued at four additional wholly-owned development
communities: Camden City Centre II in Houston, TX, a $36 million project
with 268 apartment homes; Camden NOMA in Washington, DC, a $110 million
project with 320 apartment homes; Camden Lamar Heights in Austin, TX, a
$47 million project with 314 apartment homes; and Camden Flatirons in
Denver, CO, a $78 million project with 424 apartment homes.
Lease-up was completed during the quarter at one joint venture
community, Camden Amber Oaks II in Austin, TX, a 244-home project which
is currently 95% occupied. Construction continued at Camden South
Capitol in Washington, DC, an $88 million joint venture project with 276
apartment homes, and construction began at Camden Waterford Lakes in
Orlando, FL, a $40 million joint venture project with 300 apartment
homes.
Quarterly Dividend Declaration
Camden’s Board of Trust Managers declared a first quarter 2013 dividend
of $0.63 per common share, which is a 12.5% increase over the Company’s
prior quarterly dividend of $0.56 per share. The dividend is payable on
April 17, 2013 to holders of record as of March 28, 2013. In declaring
the dividend, the Board of Trust Managers considered a number of
factors, including the Company’s past performance and future prospects,
as described in this release.
Earnings Guidance
Camden provided initial earnings guidance for 2013 based on its current
and expected views of the apartment market and general economic
conditions. Full-year 2013 FFO is expected to be $3.85 to $4.05 per
diluted share, and full-year 2013 EPS is expected to be $1.38 to $1.58
per diluted share. First quarter 2013 earnings guidance is $0.92 to
$0.96 per diluted share for FFO and $0.28 to $0.32 per diluted share for
EPS. Guidance for EPS excludes gains on real estate transactions. Camden
intends to update its earnings guidance to the market on a quarterly
basis.
The Company’s initial 2013 earnings guidance is based on projections of
same-property revenue growth between 4.75% and 6.25%, expense growth
between 3.2% and 4.0%, and NOI growth between 5.5% and 7.5%. Additional
information on the Company’s 2013 financial outlook and a reconciliation
of expected net income attributable to common shareholders to expected
FFO are included in the financial tables accompanying this press release.
Conference Call
The Company will hold a conference call on Friday, February 1, 2013 at
11:00 a.m. Central Time to review its fourth quarter and full-year 2012
results and discuss its outlook for future performance. To participate
in the call, please dial (888) 317-6003 (Domestic) or (412) 317-6061
(International) by 10:50 a.m. Central Time and enter passcode: 6680150,
or join the live webcast of the conference call by accessing the
Investor Relations section of the Company’s website at 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. Factors which may cause
the Company’s actual results or performance to differ materially from
those contemplated by forward-looking statements are described under the
heading “Risk Factors” in Camden’s Annual Report on Form 10-K and
in other filings with the Securities and Exchange Commission (SEC).
Forward-looking statements made in today’s press release represent
management’s current opinions, and the Company assumes no obligation to
update or supplement these statements because of subsequent events.
About Camden
Camden Property Trust, an S&P 400 Company, is a real estate company
engaged in the ownership, development, acquisition, management and
disposition of multifamily apartment communities. Camden owns interests
in and operates 192 properties containing 65,005 apartment homes across
the United States. Upon completion of nine properties under development,
the Company’s portfolio will increase to 67,850 apartment homes in 201
properties. Camden was recently named by FORTUNE® Magazine for the sixth
consecutive year as one of the “100 Best Companies to Work For” in
America, ranking #10.
For additional information, please contact Camden’s Investor Relations
Department at (800) 922-6336 or (713) 354-2787 or access our website at camdenliving.com.
|
|
|
CAMDEN
|
|
OPERATING RESULTS
|
|
|
|
(In thousands, except per share and property data amounts)
|
|
|
|
|
|
(Unaudited)
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
OPERATING DATA
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Property revenues
|
|
|
|
|
|
|
|
|
|
Rental revenues
|
|
$165,464
|
|
$137,113
|
|
$626,127
|
|
$533,937
|
|
Other property revenues
|
|
25,968
|
|
21,775
|
|
101,781
|
|
87,137
|
|
Total property revenues
|
|
191,432
|
|
158,888
|
|
727,908
|
|
621,074
|
|
|
|
|
|
|
|
|
|
|
|
Property expenses
|
|
|
|
|
|
|
|
|
|
Property operating and maintenance
|
|
50,226
|
|
42,722
|
|
196,811
|
|
175,000
|
|
Real estate taxes
|
|
18,621
|
|
15,809
|
|
72,858
|
|
65,128
|
|
Total property expenses
|
|
68,847
|
|
58,531
|
|
269,669
|
|
240,128
|
|
|
|
|
|
|
|
|
|
|
|
Non-property income
|
|
|
|
|
|
|
|
|
|
Fee and asset management
|
|
2,773
|
|
3,018
|
|
12,345
|
|
9,973
|
|
Interest and other income (loss)
|
|
40
|
|
(100)
|
|
(710)
|
|
4,649
|
|
Income on deferred compensation plans
|
|
952
|
|
5,540
|
|
4,772
|
|
6,773
|
|
Total non-property income
|
|
3,765
|
|
8,458
|
|
16,407
|
|
21,395
|
|
|
|
|
|
|
|
|
|
|
|
Other expenses
|
|
|
|
|
|
|
|
|
|
Property management
|
|
6,152
|
|
5,208
|
|
21,796
|
|
20,686
|
|
Fee and asset management
|
|
1,580
|
|
1,715
|
|
6,631
|
|
5,935
|
|
General and administrative
|
|
9,816
|
|
9,064
|
|
37,528
|
|
35,456
|
|
Interest
|
|
25,487
|
|
26,942
|
|
104,282
|
|
112,414
|
|
Depreciation and amortization
|
|
52,501
|
|
42,428
|
|
203,077
|
|
171,127
|
|
Amortization of deferred financing costs
|
|
887
|
|
1,116
|
|
3,608
|
|
5,877
|
|
Expense on deferred compensation plans
|
|
952
|
|
5,540
|
|
4,772
|
|
6,773
|
|
Total other expenses
|
|
97,375
|
|
92,013
|
|
381,694
|
|
358,268
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on acquisition of controlling interests in joint ventures
|
|
17,227
|
|
-
|
|
57,418
|
|
-
|
|
Gain on sale of properties, including land
|
|
-
|
|
-
|
|
-
|
|
4,748
|
|
Gain on sale of unconsolidated joint venture interests
|
|
-
|
|
-
|
|
-
|
|
1,136
|
|
Loss on discontinuation of hedging relationship
|
|
-
|
|
-
|
|
-
|
|
(29,791)
|
|
Equity in income of joint ventures
|
|
15,489
|
|
5,845
|
|
20,175
|
|
5,679
|
|
Income from continuing operations before income taxes
|
|
61,691
|
|
22,647
|
|
170,545
|
|
25,845
|
|
Income tax expense - current
|
|
(216)
|
|
(331)
|
|
(1,208)
|
|
(2,220)
|
|
Income from continuing operations
|
|
61,475
|
|
22,316
|
|
169,337
|
|
23,625
|
|
Income from discontinued operations
|
|
2,144
|
|
3,127
|
|
9,495
|
|
11,715
|
|
Gain on sale of discontinued operations, net of tax
|
|
82,527
|
|
24,621
|
|
115,068
|
|
24,621
|
|
Net income
|
|
146,146
|
|
50,064
|
|
293,900
|
|
59,961
|
|
Less income allocated to noncontrolling interests from continuing
operations
|
|
(1,893)
|
|
(1,431)
|
|
(4,821)
|
|
(3,453)
|
|
Less income, including gain on sale, allocated to noncontrolling
interests from discontinued operations
|
|
(2,087)
|
|
(33)
|
|
(2,838)
|
|
(129)
|
|
Less income allocated to perpetual preferred units
|
|
-
|
|
(1,750)
|
|
(776)
|
|
(7,000)
|
|
Less write off of original issuance costs of redeemed perpetual
preferred units
|
|
-
|
|
-
|
|
(2,075)
|
|
-
|
|
Net income attributable to common shareholders
|
|
$142,166
|
|
$46,850
|
|
$283,390
|
|
$49,379
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
|
|
|
|
Net income
|
|
$146,146
|
|
$50,064
|
|
$293,900
|
|
$59,961
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
Unrealized loss on cash flow hedging activities
|
|
-
|
|
-
|
|
-
|
|
(2,692)
|
|
Reclassification of net (gain) loss on cash flow hedging activities
|
|
-
|
|
(3)
|
|
-
|
|
39,657
|
|
Reclassification of (gain) loss on available-for-sale investment to
earnings, net of tax
|
|
-
|
|
3
|
|
-
|
|
(3,306)
|
|
Reclassification of prior service cost and net loss on post
retirement obligation
|
|
7
|
|
-
|
|
30
|
|
-
|
|
Unrealized loss and unamortized prior service cost on postretirement
obligation
|
|
(409)
|
|
(884)
|
|
(409)
|
|
(884)
|
|
Comprehensive income
|
|
145,744
|
|
49,180
|
|
293,521
|
|
92,736
|
|
Less income allocated to noncontrolling interests from continuing
operations
|
|
(1,893)
|
|
(1,431)
|
|
(4,821)
|
|
(3,453)
|
|
Less income, including gain on sale, allocated to noncontrolling
interests from discontinued operations
|
|
(2,087)
|
|
(33)
|
|
(2,838)
|
|
(129)
|
|
Less income allocated to perpetual preferred units
|
|
-
|
|
(1,750)
|
|
(776)
|
|
(7,000)
|
|
Less write off of original issuance costs of redeemed perpetual
preferred units
|
|
-
|
|
-
|
|
(2,075)
|
|
-
|
|
Comprehensive income attributable to common shareholders
|
|
$141,764
|
|
$45,966
|
|
$283,011
|
|
$82,154
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA
|
|
|
|
|
|
|
|
|
|
Net income attributable to common shareholders - basic
|
|
$1.63
|
|
$0.63
|
|
$3.35
|
|
$0.67
|
|
Net income attributable to common shareholders - diluted
|
|
1.60
|
|
0.62
|
|
3.30
|
|
0.66
|
|
Income from continuing operations attributable to common
shareholders - basic
|
|
0.67
|
|
0.25
|
|
1.90
|
|
0.17
|
|
Income from continuing operations attributable to common
shareholders - diluted
|
|
0.66
|
|
0.25
|
|
1.88
|
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common and common equivalent shares
outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
86,298
|
|
73,510
|
|
83,772
|
|
72,756
|
|
Diluted
|
|
88,020
|
|
74,428
|
|
85,556
|
|
73,462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
FUNDS FROM OPERATIONS
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common shareholders (a) |
|
$142,166
|
|
$46,850
|
|
$283,390
|
|
$49,379
|
|
Real estate depreciation from continuing operations
|
|
51,399
|
|
41,219
|
|
198,642
|
|
166,149
|
|
Real estate depreciation and amortization from discontinued
operations
|
|
948
|
|
2,626
|
|
6,795
|
|
11,038
|
|
Adjustments for unconsolidated joint ventures
|
|
1,741
|
|
3,492
|
|
7,939
|
|
10,534
|
|
Income allocated to noncontrolling interests
|
|
3,971
|
|
1,092
|
|
6,475
|
|
2,586
|
|
(Gain) on sale of unconsolidated joint venture properties
|
|
(14,543)
|
|
(6,394)
|
|
(17,418)
|
|
(7,530)
|
|
(Gain) on acquisition of controlling interests in joint ventures
|
|
(17,227)
|
|
-
|
|
(57,418)
|
|
-
|
|
(Gain) on sale of discontinued operations, net of tax
|
|
(82,527)
|
|
(24,621)
|
|
(115,068)
|
|
(24,621)
|
|
Funds from operations - diluted
|
|
$85,928
|
|
$64,264
|
|
$313,337
|
|
$207,535
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA
|
|
|
|
|
|
|
|
|
|
Funds from operations - diluted
|
|
$0.97
|
|
$0.84
|
|
$3.62
|
|
$2.73
|
|
Cash distributions
|
|
0.56
|
|
0.49
|
|
2.24
|
|
1.96
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common and common equivalent shares
outstanding:
|
|
|
|
|
|
|
|
|
|
FFO - diluted
|
|
88,991
|
|
76,649
|
|
86,619
|
|
75,928
|
|
|
|
|
|
|
|
|
|
|
|
PROPERTY DATA
|
|
|
|
|
|
|
|
|
|
Total operating properties (end of period) (b) |
|
193
|
|
196
|
|
193
|
|
196
|
|
Total operating apartment homes in operating properties (end of
period) (b) |
|
65,775
|
|
66,997
|
|
65,775
|
|
66,997
|
|
Total operating apartment homes (weighted average)
|
|
55,163
|
|
50,934
|
|
54,194
|
|
50,905
|
|
Total operating apartment homes - excluding discontinued operations
(weighted average)
|
|
53,052
|
|
46,294
|
|
51,308
|
|
46,167
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Includes a $29.8 million charge related
to a loss on the discontinuation of a hedging relationship for the
twelve months ended December 31, 2011.
|
|
(b) Includes joint ventures and properties
held for sale.
|
|
|
|
|
|
CAMDEN
|
|
BALANCE SHEETS
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
Dec 31,
|
|
Sept 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|
|
|
2012
|
|
2012
|
|
2012
|
|
2012
|
|
2011
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Real estate assets, at cost
|
|
|
|
|
|
|
|
|
|
|
|
Land
|
|
$949,777
|
|
$929,289
|
|
$893,910
|
|
$868,964
|
|
$768,016
|
|
Buildings and improvements
|
|
5,389,674
|
|
5,359,707
|
|
5,203,675
|
|
5,068,560
|
|
4,751,654
|
|
|
|
6,339,451
|
|
6,288,996
|
|
6,097,585
|
|
5,937,524
|
|
5,519,670
|
|
Accumulated depreciation
|
|
(1,518,896)
|
|
(1,542,530)
|
|
(1,505,862)
|
|
(1,458,451)
|
|
(1,432,799)
|
|
Net operating real estate assets
|
|
4,820,555
|
|
4,746,466
|
|
4,591,723
|
|
4,479,073
|
|
4,086,871
|
|
Properties under development, including land
|
|
334,463
|
|
280,948
|
|
297,712
|
|
301,282
|
|
299,870
|
|
Investments in joint ventures
|
|
45,092
|
|
46,566
|
|
47,776
|
|
49,436
|
|
44,844
|
|
Properties held for sale
|
|
30,517
|
|
6,373
|
|
-
|
|
-
|
|
11,131
|
|
Total real estate assets
|
|
5,230,627
|
|
5,080,353
|
|
4,937,211
|
|
4,829,791
|
|
4,442,716
|
|
Accounts receivable - affiliates
|
|
33,625
|
|
28,874
|
|
29,940
|
|
29,742
|
|
31,035
|
|
Other assets, net (a) |
|
88,260
|
|
96,401
|
|
88,002
|
|
89,706
|
|
88,089
|
|
Cash and cash equivalents
|
|
26,669
|
|
5,590
|
|
52,126
|
|
49,702
|
|
55,159
|
|
Restricted cash
|
|
5,991
|
|
6,742
|
|
5,295
|
|
5,074
|
|
5,076
|
|
Total assets
|
|
$5,385,172
|
|
$5,217,960
|
|
$5,112,574
|
|
$5,004,015
|
|
$4,622,075
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Notes payable
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured
|
|
$1,538,212
|
|
$1,415,354
|
|
$1,381,152
|
|
$1,380,952
|
|
$1,380,755
|
|
Secured
|
|
972,256
|
|
978,371
|
|
1,015,260
|
|
1,050,154
|
|
1,051,357
|
|
Accounts payable and accrued expenses
|
|
101,896
|
|
118,879
|
|
87,041
|
|
105,370
|
|
93,747
|
|
Accrued real estate taxes
|
|
28,452
|
|
43,757
|
|
31,607
|
|
17,991
|
|
21,883
|
|
Distributions payable
|
|
49,969
|
|
49,940
|
|
49,135
|
|
47,594
|
|
39,364
|
|
Other liabilities (b) |
|
67,679
|
|
78,551
|
|
83,471
|
|
90,423
|
|
109,276
|
|
Total liabilities
|
|
2,758,464
|
|
2,684,852
|
|
2,647,666
|
|
2,692,484
|
|
2,696,382
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Perpetual preferred units
|
|
-
|
|
-
|
|
-
|
|
-
|
|
97,925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Common shares of beneficial interest
|
|
962
|
|
959
|
|
945
|
|
919
|
|
845
|
|
Additional paid-in capital
|
|
3,587,505
|
|
3,580,528
|
|
3,501,354
|
|
3,327,961
|
|
2,901,024
|
|
Distributions in excess of net income attributable to common
shareholders
|
|
(598,951)
|
|
(692,235)
|
|
(674,221)
|
|
(648,074)
|
|
(690,466)
|
|
Treasury shares, at cost
|
|
(425,355)
|
|
(425,756)
|
|
(430,958)
|
|
(437,215)
|
|
(452,003)
|
|
Accumulated other comprehensive income (loss) (c) |
|
(1,062)
|
|
(660)
|
|
(667)
|
|
(675)
|
|
(683)
|
|
Total common equity
|
|
2,563,099
|
|
2,462,836
|
|
2,396,453
|
|
2,242,916
|
|
1,758,717
|
|
Noncontrolling interests
|
|
63,609
|
|
70,272
|
|
68,455
|
|
68,615
|
|
69,051
|
|
Total equity
|
|
2,626,708
|
|
2,533,108
|
|
2,464,908
|
|
2,311,531
|
|
1,827,768
|
|
Total liabilities and equity
|
|
$5,385,172
|
|
$5,217,960
|
|
$5,112,574
|
|
$5,004,015
|
|
$4,622,075
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Includes:
|
|
|
|
|
|
|
|
|
|
|
|
net deferred charges of:
|
|
$15,635
|
|
$13,695
|
|
$14,432
|
|
$15,267
|
|
$16,102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Includes:
|
|
|
|
|
|
|
|
|
|
|
|
deferred revenues of:
|
|
$2,521
|
|
$1,746
|
|
$2,012
|
|
$2,337
|
|
$2,140
|
|
distributions in excess of investments in joint ventures of:
|
|
$9,509
|
|
$16,708
|
|
$16,499
|
|
$16,298
|
|
$30,596
|
|
fair value adjustment of derivative instruments:
|
|
($1)
|
|
$185
|
|
$5,918
|
|
$11,574
|
|
$16,486
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) Represents the unrealized (loss)/gain and unamortized prior
service costs on post retirement obligations.
|
|
|
|
|
|
CAMDEN
|
|
2013 Financial Outlook
|
|
|
|
as of January 31, 2013
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
2012 Reported FFO, Adjusted for Year End Shares Outstanding
|
|
($'s and shares in thousands)
|
|
|
|
|
|
|
|
Total
|
|
Per Share
|
|
2012 Reported FFO
|
|
$313,337
|
|
$3.62
|
|
|
|
|
|
|
|
2012 Fully Diluted Shares Outstanding - FFO
|
|
|
|
86,619
|
|
|
|
|
|
|
|
December 31, 2012 Fully Diluted Shares Outstanding - FFO
|
|
|
|
89,039
|
|
|
|
|
|
|
|
2012 FFO adjusted for December 31, 2012 Fully Diluted Shares
Outstanding - FFO
|
|
|
|
$3.52
|
|
|
|
|
|
|
|
2013 Financial Outlook
|
|
|
|
|
|
|
|
Earnings Guidance - Per Diluted Share
|
|
|
|
|
|
Expected net income attributable to common shareholders per share -
diluted
|
|
|
|
$1.38 - $1.58
|
|
Expected real estate depreciation
|
|
|
|
2.33
|
|
Expected adjustments for unconsolidated joint ventures
|
|
|
|
0.07
|
|
Expected income allocated to noncontrolling interests
|
|
|
|
0.07
|
|
Expected FFO per share - diluted
|
|
|
|
$3.85 - $4.05
|
|
|
|
|
|
|
|
"Same Property" Communities
|
|
|
|
|
|
Number of Units
|
|
|
|
44,395
|
|
2012 Base Net Operating Income
|
|
|
|
$398 million
|
|
Total Revenue Growth
|
|
|
|
4.75% - 6.25%
|
|
Total Expense Growth
|
|
|
|
3.20% - 4.00%
|
|
Net Operating Income Growth
|
|
|
|
5.50% - 7.50%
|
|
Impact from 1.0% change in NOI Growth is approximately $0.045 /
share
|
|
|
|
|
|
|
|
|
|
|
|
Impact from 2013 Revenue Enhancing Repositions included
in Same Store Net Operating Income Guidance (a)
|
|
|
|
0.50%
|
|
|
|
|
|
|
|
Physical Occupancy
|
|
|
|
95%
|
|
|
|
|
|
|
|
Capitalized Expenditures
|
|
|
|
|
|
Recurring
|
|
|
|
$60 - $64 million
|
|
Revenue Enhancing Repositions (a) |
|
|
|
$50 - $60 million
|
|
|
|
|
|
|
|
Acquisitions/Dispositions
|
|
|
|
|
|
Acquisition Volume (consolidated on balance sheet)
|
|
|
|
$200 - $400 million
|
|
Disposition Volume
|
|
|
|
$200 - $400 million
|
|
|
|
|
|
|
|
Development
|
|
|
|
|
|
Development Starts (consolidated on balance sheet)
|
|
|
|
$250 - $400 million
|
|
Development Starts (joint venture)
|
|
|
|
$0 - $50 million
|
|
Development Spend (consolidated on balance sheet)
|
|
|
|
$200 - $250 million
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Property Income
|
|
|
|
|
|
Non-Property Income, Net
|
|
|
|
$5 - $6 million
|
|
Includes: Fee and asset management income, net of expenses and
|
|
|
|
|
|
Interest and other income
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Expenses
|
|
|
|
|
|
General and administrative expense (b) |
|
|
|
$38 - $40 million
|
|
Property management expense
|
|
|
|
$21 - $23 million
|
|
|
|
|
|
|
|
Capital
|
|
|
|
|
|
Expected Capital Transactions
|
|
|
|
$250 - $350 million
|
|
Expensed Interest
|
|
|
|
$98 - $102 million
|
|
Capitalized Interest
|
|
|
|
$14 - $16 million
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Capital expenditures that improve a community's competitive
position, typically kitchen and bath upgrades or other new amenities.
|
|
(b) Excludes any third party acquisition costs.
|
|
|
|
Note: This table contains forward-looking statements. Please see
the paragraph regarding forward-looking statements earlier in this
document. Additionally, please refer to the following pages for
definitions and reconciliations of all non-GAAP financial measures
presented in this document.
|
|
|
|
|
|
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 attributable to
common shares 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 attributable to common shareholders to FFO is provided
below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
2012
|
|
2011
|
|
|
|
2012
|
|
2011
|
|
Net income attributable to common shareholders (a) |
|
$142,166
|
|
$46,850
|
|
|
|
$283,390
|
|
$49,379
|
|
Real estate depreciation from continuing operations
|
|
51,399
|
|
41,219
|
|
|
|
198,642
|
|
166,149
|
|
Real estate depreciation and amortization from discontinued
operations
|
|
948
|
|
2,626
|
|
|
|
6,795
|
|
11,038
|
|
Adjustments for unconsolidated joint ventures
|
|
1,741
|
|
3,492
|
|
|
|
7,939
|
|
10,534
|
|
Income allocated to noncontrolling interests
|
|
3,971
|
|
1,092
|
|
|
|
6,475
|
|
2,586
|
|
(Gain) on sale of unconsolidated joint venture properties
|
|
(14,543)
|
|
(6,394)
|
|
|
|
(17,418)
|
|
(7,530)
|
|
(Gain) on acquisition of controlling interests in joint ventures
|
|
(17,227)
|
|
-
|
|
|
|
(57,418)
|
|
-
|
|
(Gain) on sale of discontinued operations, net of tax
|
|
(82,527)
|
|
(24,621)
|
|
|
|
(115,068)
|
|
(24,621)
|
|
Funds from operations - diluted
|
|
$85,928
|
|
$64,264
|
|
|
|
$313,337
|
|
$207,535
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common and common equivalent shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
EPS diluted
|
|
88,020
|
|
74,428
|
|
|
|
85,556
|
|
73,462
|
|
FFO diluted
|
|
88,991
|
|
76,649
|
|
|
|
86,619
|
|
75,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common shareholders - diluted
|
|
$1.60
|
|
$0.62
|
|
|
|
$3.30
|
|
$0.66
|
|
FFO per common share - diluted
|
|
$0.97
|
|
$0.84
|
|
|
|
$3.62
|
|
$2.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Includes a $29.8 million charge related to
a loss on the discontinuation of a hedging relationship for the
twelve months ended December 31, 2011.
|
|
|
|
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 attributable to common shareholders (EPS). A reconciliation
of the ranges provided for expected net income attributable to
common shareholders per diluted share to expected FFO per diluted
share is provided below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q13 Range
|
|
|
|
2013 Range
|
|
|
|
Low
|
|
High
|
|
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expected net income attributable to common shareholders per share -
diluted
|
|
$0.28
|
|
$0.32
|
|
|
|
$1.38
|
|
$1.58
|
|
Expected real estate depreciation
|
|
0.60
|
|
0.60
|
|
|
|
2.33
|
|
2.33
|
|
Expected adjustments for unconsolidated joint ventures
|
|
0.02
|
|
0.02
|
|
|
|
0.07
|
|
0.07
|
|
Expected income allocated to noncontrolling interests
|
|
0.02
|
|
0.02
|
|
|
|
0.07
|
|
0.07
|
|
Expected FFO per share - diluted
|
|
$0.92
|
|
$0.96
|
|
|
|
$3.85
|
|
$4.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 attributable to
common shareholders 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 attributable to common shareholders
to net operating income is provided below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
2012
|
|
2011
|
|
|
|
2012
|
|
2011
|
|
Net income attributable to common shareholders
|
|
$142,166
|
|
$46,850
|
|
|
|
$283,390
|
|
$49,379
|
|
Less: Fee and asset management income
|
|
(2,773)
|
|
(3,018)
|
|
|
|
(12,345)
|
|
(9,973)
|
|
Less: Interest and other (income) loss
|
|
(40)
|
|
100
|
|
|
|
710
|
|
(4,649)
|
|
Less: Income on deferred compensation plans
|
|
(952)
|
|
(5,540)
|
|
|
|
(4,772)
|
|
(6,773)
|
|
Plus: Property management expense
|
|
6,152
|
|
5,208
|
|
|
|
21,796
|
|
20,686
|
|
Plus: Fee and asset management expense
|
|
1,580
|
|
1,715
|
|
|
|
6,631
|
|
5,935
|
|
Plus: General and administrative expense
|
|
9,816
|
|
9,064
|
|
|
|
37,528
|
|
35,456
|
|
Plus: Interest expense
|
|
25,487
|
|
26,942
|
|
|
|
104,282
|
|
112,414
|
|
Plus: Depreciation and amortization
|
|
52,501
|
|
42,428
|
|
|
|
203,077
|
|
171,127
|
|
Plus: Amortization of deferred financing costs
|
|
887
|
|
1,116
|
|
|
|
3,608
|
|
5,877
|
|
Plus: Expense on deferred compensation plans
|
|
952
|
|
5,540
|
|
|
|
4,772
|
|
6,773
|
|
Less: Gain on acquisition of controlling interests in joint ventures
|
|
(17,227)
|
|
-
|
|
|
|
(57,418)
|
|
-
|
|
Less: Gain on sale of properties, including land
|
|
-
|
|
-
|
|
|
|
-
|
|
(4,748)
|
|
Less: Gain on sale of unconsolidated joint venture interests
|
|
-
|
|
-
|
|
|
|
-
|
|
(1,136)
|
|
Plus: Loss on discontinuation of hedging relationship
|
|
-
|
|
-
|
|
|
|
-
|
|
29,791
|
|
Less: Equity in income of joint ventures
|
|
(15,489)
|
|
(5,845)
|
|
|
|
(20,175)
|
|
(5,679)
|
|
Plus: Income tax expense - current
|
|
216
|
|
331
|
|
|
|
1,208
|
|
2,220
|
|
Less: Income from discontinued operations
|
|
(2,144)
|
|
(3,127)
|
|
|
|
(9,495)
|
|
(11,715)
|
|
Less: Gain on sale of discontinued operations, net of tax
|
|
(82,527)
|
|
(24,621)
|
|
|
|
(115,068)
|
|
(24,621)
|
|
Plus: Income allocated to noncontrolling interests from continuing
operations
|
|
1,893
|
|
1,431
|
|
|
|
4,821
|
|
3,453
|
|
Plus: Income, including gain on sale, allocated to noncontrolling
interests from discontinued operations
|
|
2,087
|
|
33
|
|
|
|
2,838
|
|
129
|
|
Plus: Income allocated to perpetual preferred units
|
|
-
|
|
1,750
|
|
|
|
776
|
|
7,000
|
|
Plus: Write off of original issuance costs of redeemed perpetual
preferred units
|
|
-
|
|
-
|
|
|
|
2,075
|
|
-
|
|
Net Operating Income (NOI)
|
|
$122,585
|
|
$100,357
|
|
|
|
$458,239
|
|
$380,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
"Same Property" Communities
|
|
$103,930
|
|
$96,193
|
|
|
|
$402,513
|
|
$368,569
|
|
Non-"Same Property" Communities
|
|
17,449
|
|
3,652
|
|
|
|
51,525
|
|
11,491
|
|
Development and Lease-Up Communities
|
|
598
|
|
1
|
|
|
|
1,126
|
|
1
|
|
Other
|
|
608
|
|
511
|
|
|
|
3,075
|
|
885
|
|
Net Operating Income (NOI)
|
|
$122,585
|
|
$100,357
|
|
|
|
$458,239
|
|
$380,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
loss of joint ventures, (gain) loss on sale of unconsolidated
joint venture interests, gain on acquisition of controlling
interest in joint ventures, gain on sale of discontinued
operations, net of tax, and income (loss) allocated to
noncontrolling interests. The Company considers EBITDA to be an
appropriate supplemental measure of operating performance to net
income attributable to common shareholders 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 attributable to common shareholders
to EBITDA is provided below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
2012
|
|
2011
|
|
|
|
2012
|
|
2011
|
|
Net income attributable to common shareholders
|
|
$142,166
|
|
$46,850
|
|
|
|
$283,390
|
|
$49,379
|
|
Plus: Interest expense
|
|
25,487
|
|
26,942
|
|
|
|
104,282
|
|
112,414
|
|
Plus: Amortization of deferred financing costs
|
|
887
|
|
1,116
|
|
|
|
3,608
|
|
5,877
|
|
Plus: Depreciation and amortization
|
|
52,501
|
|
42,428
|
|
|
|
203,077
|
|
171,127
|
|
Plus: Income allocated to perpetual preferred units
|
|
-
|
|
1,750
|
|
|
|
776
|
|
7,000
|
|
Plus: Write off of original issuance costs of redeemed perpetual
preferred units
|
|
-
|
|
-
|
|
|
|
2,075
|
|
-
|
|
Plus: Income, including gain on sale, allocated to noncontrolling
interests from discontinued operations
|
|
2,087
|
|
33
|
|
|
|
2,838
|
|
129
|
|
Plus: Income allocated to noncontrolling interests from continuing
operations
|
|
1,893
|
|
1,431
|
|
|
|
4,821
|
|
3,453
|
|
Plus: Income tax expense - current
|
|
216
|
|
331
|
|
|
|
1,208
|
|
2,220
|
|
Plus: Real estate depreciation and amortization from discontinued
operations
|
|
948
|
|
2,626
|
|
|
|
6,795
|
|
11,038
|
|
Less: Gain on sale of properties, including land
|
|
-
|
|
-
|
|
|
|
-
|
|
(4,748)
|
|
Less: Gain on sale of unconsolidated joint venture interests
|
|
-
|
|
-
|
|
|
|
-
|
|
(1,136)
|
|
Less: Gain on acquisition of controlling interests in joint ventures
|
|
(17,227)
|
|
-
|
|
|
|
(57,418)
|
|
-
|
|
Less: Equity in income of joint ventures
|
|
(15,489)
|
|
(5,845)
|
|
|
|
(20,175)
|
|
(5,679)
|
|
Less: Gain on sale of discontinued operations, net of tax
|
|
(82,527)
|
|
(24,621)
|
|
|
|
(115,068)
|
|
(24,621)
|
|
Plus: Loss on discontinuation of hedging relationship
|
|
-
|
|
-
|
|
|
|
-
|
|
29,791
|
|
EBITDA
|
|
$110,942
|
|
$93,041
|
|
|
|
$420,209
|
|
$356,244
|
|
|
