2015-10-29 | Camden Property Trust Announces Third Quarter 2015 Operating Results | NYSE:CPT

Camden Property Trust (NYSE:CPT) today announced operating results for the three and nine months ended September 30, 2015.

Funds from Operations (“FFO”), Adjusted Funds from Operations (“AFFO”), and Net Income Attributable to Common Shareholders (“EPS”) for the three and nine months ended September 30, 2015 are detailed below.

	Three Months Ended		Nine Months Ended
	September 30		September 30
Per Diluted Share	2015	2014	2015	2014
FFO	$1.14	$1.09	$3.34	$3.19
AFFO	$0.91	$0.89	$2.77	$2.71
EPS	$0.41	$0.43	$2.09	$1.28

A reconciliation of EPS to FFO is included in the financial tables accompanying this press release.

Same Property Results

	Quarterly Growth		Sequential Growth		Year to Date Growth
	3Q15 vs. 3Q14		3Q15 vs. 2Q15		2015 vs. 2014
Revenues	5.5	%	2.1	%	5.1	%
Expenses	5.7	%	4.8	%	5.2	%
Net Operating Income ("NOI")	5.5	%	0.6	%	5.0	%

	3Q15		3Q14		2Q15
Occupancy	96.0%		95.9%		95.9%

“We are pleased to report another solid quarter of earnings growth,” said Richard Campo, Camden’s Chairman and CEO. “Operating fundamentals in the apartment industry remain favorable, and we expect 2016 to be another strong year for our business.”

The Company defines same property communities as communities owned and stabilized as of January 1, 2014. A reconciliation of net income to NOI and same property NOI is included in the financial tables accompanying this press release.

Development Activity

Lease-up was completed during the third quarter at Camden Foothills in Scottsdale, AZ and the property is currently 94% occupied. Construction was completed during the quarter at Camden Flatirons located in Denver, CO and Camden Glendale located in Glendale, CA.

Development Communities - Construction Completed and Projects in Lease-Up ($ in millions)

		Total	Total	CPT %	% Leased
Community Name	Location	Units	Cost	Owned	as of 10/28/2015
Camden Hayden	Tempe, AZ	234	$44.2	100%	88%
Camden Flatirons	Denver, CO	424	79.2	100%	81%
Camden Glendale	Glendale, CA	303	112.8	100%	57%
TOTAL		961	$236.2

Development Communities - Construction Ongoing ($ in millions)

		Total	Total	CPT %	% Leased
Community Name	Location	Units	Budget	Owned	as of 10/28/2015
Camden Paces	Atlanta, GA	379	$117.0	100%	67%
Camden Southline	Charlotte, NC	266	48.0	31.3%	68%
Camden Chandler	Chandler, AZ	380	73.0	100%	67%
Camden Gallery	Charlotte, NC	323	58.0	100%
Camden Victory Park	Dallas, TX	423	82.0	100%
The Camden	Los Angeles, CA	287	145.0	100%
Camden Lincoln Station	Denver, CO	267	56.0	100%
Camden NoMa II	Washington, DC	405	115.0	100%
Camden Shady Grove	Rockville, MD	457	116.0	100%
Camden McGowen Station	Houston, TX	315	90.0	100%
TOTAL		3,502	$900.0

Acquisition/Disposition Activity

Subsequent to quarter-end, the Company acquired a 5.8-acre land parcel in Gaithersburg, MD for $13.3 million for the future development of approximately 365 apartment homes. The Company also disposed of Camden Providence Lakes, a 260-home community in Brandon, FL for $33.0 million subsequent to quarter-end.

Earnings Guidance

Camden updated its earnings guidance for 2015 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for fourth quarter 2015 as detailed below.

Per Diluted Share	4Q15	2015
FFO	$1.17 - $1.21	$4.51 - $4.55
EPS	$0.62 - $0.66	$2.71 - $2.75

Same Property Growth	2015 Range	2015 Midpoint
Revenue	5.1% - 5.3%	5.2%
Expenses	5.1% - 5.3%	5.2%
NOI	5.1% - 5.3%	5.2%

Camden intends to update its earnings guidance to the market on a quarterly basis. Additional information on the Company’s 2015 financial outlook and a reconciliation of expected EPS to expected FFO are included in the financial tables accompanying this press release.

Conference Call

The Company will hold a conference call on Friday, October 30, 2015 at 11:00 a.m. Central Time to review its third quarter 2015 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: 3697045, or join the live webcast of the conference call by accessing the Investors section of the Company’s website at camdenliving.com. Supplemental financial information is available in the Investors 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, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns interests in and operates 170 properties containing 59,147 apartment homes across the United States. Upon completion of 10 properties under development, the Company’s portfolio will increase to 62,649 apartment homes in 180 properties. Camden was recently named by FORTUNE® Magazine for the eighth 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 amounts)

(Unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
		2015			2014			2015			2014
OPERATING DATA
Property revenues
Rental revenues	$	194,515		$	184,247		$	571,461		$	543,649
Other property revenues		32,670			28,851			91,809			83,870
Total property revenues		227,185			213,098			663,270			627,519

Property expenses
Property operating and maintenance		58,062			55,228			164,532			158,239
Real estate taxes		26,044			23,447			76,774			70,640
Total property expenses		84,106			78,675			241,306			228,879

Non-property income
Fee and asset management		1,902			2,131			5,083			7,301
Interest and other income		107			430			308			762
Income/(loss) on deferred compensation plans		(3,438	)		(765	)		(1,871	)		1,934
Total non-property income		(1,429	)		1,796			3,520			9,997

Other expenses
Property management		5,884			5,416			17,928			17,108
Fee and asset management		1,227			1,240			3,424			3,746
General and administrative		11,790			10,331			33,120			30,410
Interest		23,265			22,967			72,288			68,846
Depreciation and amortization		65,079			59,179			190,337			174,528
Amortization of deferred financing costs		725			836			2,143			2,493
Expense/(benefit) on deferred compensation plans		(3,438	)		(765	)		(1,871	)		1,934
Total other expenses		104,532			99,204			317,369			299,065

Gain on sale of operating properties, including land		-			1,808			85,192			3,609
Impairment associated with land holdings		-			-			-			(1,152	)
Equity in income of joint ventures		1,574			863			4,487			5,889
Income from continuing operations before income taxes		38,692			39,686			197,794			117,918
Income tax expense		(498	)		(353	)		(1,334	)		(1,228	)
Net income		38,194			39,333			196,460			116,690
Less income allocated to non-controlling interests from continuing operations		(1,150	)		(1,050	)		(7,738	)		(3,099	)
Net income attributable to common shareholders	$	37,044		$	38,283		$	188,722		$	113,591

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$	38,194		$	39,333		$	196,460		$	116,690
Other comprehensive income
Unrealized loss on cash flow hedging activities		-			(417	)		-			(417	)
Reclassification of net loss on cash flow hedging activities, prior service cost and net
loss on post retirement obligation		38			20			112			49
Comprehensive income		38,232			38,936			196,572			116,322
Less income allocated to non-controlling interests from continuing operations		(1,150	)		(1,050	)		(7,738	)		(3,099	)
Comprehensive income attributable to common shareholders	$	37,082		$	37,886		$	188,834		$	113,223

PER SHARE DATA
Total earnings per common share – basic	$	0.41		$	0.43		$	2.10		$	1.28
Total earnings per common share – diluted		0.41			0.43			2.09			1.28

Weighted average number of common shares outstanding:
Basic		89,164			88,146			89,102			87,882
Diluted		90,341			89,353			89,450			89,052

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 September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
FUNDS FROM OPERATIONS

Net income attributable to common shareholders	$	37,044		$	38,283		$	188,722		$	113,591
Real estate depreciation and amortization		63,852			58,039			186,818			170,606
Adjustments for unconsolidated joint ventures		2,300			1,340			6,782			3,980
Income allocated to non-controlling interests		1,150			1,050			7,738			3,099
Gain on sale of unconsolidated joint venture properties		-			-			-			(3,566	)
Gain on sale of operating properties, net of tax		-			-			(85,145	)		-
Funds from operations	$	104,346		$	98,712		$	304,915		$	287,710

Less: recurring capitalized expenditures (a)		(21,508	)		(18,074	)		(52,002	)		(43,484	)

Adjusted funds from operations - diluted	$	82,838		$	80,638		$	252,913		$	244,226

PER SHARE DATA
Funds from operations - diluted	$	1.14		$	1.09		$	3.34		$	3.19
Adjusted funds from operations - diluted		0.91			0.89			2.77			2.71
Distributions declared per common share		0.70			0.66			2.10			1.98

Weighted average number of common shares outstanding:
FFO/AFFO - diluted		91,426			90,439			91,347			90,138

PROPERTY DATA
Total operating properties (end of period) ^(b)		171			170			171			170
Total operating apartment homes in operating properties (end of period) ^(b)		59,407			60,038			59,407			60,038
Total operating apartment homes (weighted average)		52,323			52,964			51,881			52,778

(a) Capital expenditures necessary to help preserve the value of and maintain the functionality at our communities.

(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 SHEET
	(In thousands)

(Unaudited)
	Sep 30, 2015			Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Sep 30, 2014
ASSETS
Real estate assets, at cost
Land	$	1,047,453		$	1,034,649		$	1,012,684		$	1,003,422		$	997,349
Buildings and improvements		6,237,648			6,134,510			5,979,985			5,890,498			5,894,453
		7,285,101			7,169,159			6,992,669			6,893,920			6,891,802
Accumulated depreciation		(1,914,469	)		(1,860,923	)		(1,798,955	)		(1,738,862	)		(1,813,124	)
Net operating real estate assets		5,370,632			5,308,236			5,193,714			5,155,058			5,078,678
Properties under development, including land		443,469			488,565			519,454			527,596			576,269
Investments in joint ventures		34,705			35,731			36,526			36,429			35,180
Properties held for sale		13,168			-			-			27,143			-
Total real estate assets		5,861,974			5,832,532			5,749,694			5,746,226			5,690,127
Accounts receivable – affiliates		25,053			25,855			25,652			25,977			25,954
Other assets, net ^(a)		130,360			120,082			122,326			124,888			123,999
Cash and cash equivalents		10,375			16,508			174,353			153,918			66,127
Restricted cash		6,126			5,791			5,034			5,898			5,769
Total assets	$	6,033,888		$	6,000,768		$	6,077,059		$	6,056,907		$	5,911,976



LIABILITIES AND EQUITY
Liabilities
Notes payable
Unsecured	$	1,811,739		$	1,770,491		$	1,838,203		$	1,837,911		$	1,837,621
Secured		903,468			904,196			904,914			905,628			906,328
Accounts payable and accrued expenses		131,532			128,532			134,438			157,232			147,255
Accrued real estate taxes		57,642			43,905			23,269			39,149			54,369
Distributions payable		64,276			64,253			64,261			60,386			60,265
Other liabilities ^(b)		96,679			100,515			102,163			100,058			94,230
Total liabilities		3,065,336			3,011,892			3,067,248			3,100,364			3,100,068

Commitments and contingencies
Non-qualified deferred compensation share awards		72,316			69,791			69,902			68,134			60,363

Equity
Common shares of beneficial interest		976			976			976			976			974
Additional paid-in capital		3,660,482			3,657,537			3,656,105			3,667,448			3,649,750
Distributions in excess of net income attributable to common shareholders		(452,257	)		(426,614	)		(403,518	)		(453,777	)		(568,142	)
Treasury shares, at cost		(387,114	)		(387,172	)		(388,181	)		(396,626	)		(397,497	)
Accumulated other comprehensive loss ^(c)		(2,307	)		(2,345	)		(2,382	)		(2,419	)		(1,474	)
Total common equity		2,819,780			2,842,382			2,863,000			2,815,602			2,683,611
Non-controlling interests		76,456			76,703			76,909			72,807			67,934
Total equity		2,896,236			2,919,085			2,939,909			2,888,409			2,751,545
Total liabilities and equity	$	6,033,888		$	6,000,768		$	6,077,059		$	6,056,907		$	5,911,976



(a) Includes net deferred charges of:	$14,452			$11,921			$12,432			$13,219			$14,361

(b) Includes deferred revenues of:	$1,918			$843			$1,728			$1,848			$1,734

(c) Represents the unrealized net loss and unamortized prior service costs on post retirement obligation, and unrealized loss on cash flow hedging activities.


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 accounting principles generally accepted in the United States of America ("GAAP")), excluding gains (or losses) associated with previously depreciated operating properties, real estate depreciation and amortization, impairments of depreciable assets, and adjustments for unconsolidated joint ventures. Our calculation of diluted FFO also assumes conversion of all potentially dilutive securities, including certain non-controlling interests, which are convertible into common shares. We consider FFO to be an appropriate supplemental measure of operating performance because, by excluding gains or losses on dispositions of operating properties, and depreciation, FFO can assist in the comparison of the operating performance of a company’s real estate investments between periods or to different companies. A reconciliation of net income attributable to common shareholders to FFO is provided below: Adjusted FFO In addition to FFO, we compute Adjusted FFO ("AFFO") as a supplemental measure of operating performance. AFFO is calculated utilizing FFO less recurring capital expenditures which are necessary to help preserve the value of and maintain the functionality at our communities. Definitions of recurring capital expenditures are subjective. Accordingly, there can be no assurance our basis for computing this non-GAAP measure is comparable with that of other REITs. A reconciliation of FFO to AFFO is provided below:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net income attributable to common shareholders	$	37,044		$	38,283		$	188,722		$	113,591
Real estate depreciation and amortization		63,852			58,039			186,818			170,606
Adjustments for unconsolidated joint ventures		2,300			1,340			6,782			3,980
Income allocated to non-controlling interests		1,150			1,050			7,738			3,099
Gain on sale of unconsolidated joint venture properties		-			-			-			(3,566	)
Gain on sale of operating properties, net of tax		-			-			(85,145	)		-
Funds from operations	$	104,346		$	98,712		$	304,915		$	287,710

Less: recurring capitalized expenditures		(21,508	)		(18,074	)		(52,002	)		(43,484	)

Adjusted funds from operations	$	82,838		$	80,638		$	252,913		$	244,226

Weighted average number of common shares outstanding:
EPS diluted		90,341			89,353			89,450			89,052
FFO/AFFO diluted		91,426			90,439			91,347			90,138

Earnings per common share - diluted	$	0.41		$	0.43		$	2.09		$	1.28
FFO per common share - diluted	$	1.14		$	1.09		$	3.34		$	3.19
AFFO per common share - diluted	$	0.91		$	0.89		$	2.77		$	2.71

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 earnings per common share (EPS). A reconciliation of the ranges provided for diluted EPS to expected FFO per diluted share is provided below:

	4Q15 Range						2015 Range
	Low			High			Low			High
Expected earnings per common share - diluted	$	0.62		$	0.66		$	2.71		$	2.75
Expected real estate depreciation and amortization		0.70			0.70			2.72			2.72
Expected adjustments for unconsolidated joint ventures		0.03			0.03			0.10			0.10
Expected income allocated to non-controlling interests		0.01			0.01			0.10			0.10
(Gain) on sale of unconsolidated joint venture property		-			-			-			-
Realized (gain) on sale of operating properties		-			-			(0.93	)		(0.93	)
Estimated (gain) on sale of operating property		(0.19	)		(0.19	)		(0.19	)		(0.19	)
Expected FFO per share - diluted	$	1.17		$	1.21		$	4.51		$	4.55

Note: This table contains forward-looking statements. Please see the paragraph regarding forward-looking statements earlier in this document.


CAMDEN	NON-GAAP FINANCIAL MEASURES DEFINITIONS & RECONCILIATIONS (In thousands, except per share amounts)

(Unaudited) 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 September 30,						Nine months ended September 30,
	2015			2014			2015			2014
Net income attributable to common shareholders	$	37,044		$	38,283		$	188,722		$	113,591
Less: Fee and asset management		(1,902	)		(2,131	)		(5,083	)		(7,301	)
Less: Interest and other income		(107	)		(430	)		(308	)		(762	)
Less: Income/(loss) on deferred compensation plans		3,438			765			1,871			(1,934	)
Plus: Property management		5,884			5,416			17,928			17,108
Plus: Fee and asset management		1,227			1,240			3,424			3,746
Plus: General and administrative		11,790			10,331			33,120			30,410
Plus: Interest		23,265			22,967			72,288			68,846
Plus: Depreciation and amortization		65,079			59,179			190,337			174,528
Plus: Amortization of deferred financing costs		725			836			2,143			2,493
Plus: Expense/(benefit) on deferred compensation plans		(3,438	)		(765	)		(1,871	)		1,934
Less: Gain on sale of operating properties, including land		-			(1,808	)		(85,192	)		(3,609	)
Less: Impairment associated with land holdings		-			-			-			1,152
Less: Equity in income of joint ventures		(1,574	)		(863	)		(4,487	)		(5,889	)
Plus: Income tax expense		498			353			1,334			1,228
Plus: Income allocated to non-controlling interests from continuing operations		1,150			1,050			7,738			3,099
Net Operating Income (NOI)	$	143,079		$	134,423		$	421,964		$	398,640

"Same Property" Communities	$	130,695		$	123,929		$	386,416		$	367,863
Non-"Same Property" Communities		7,982			3,919			25,442			11,425
Development and Lease-Up Communities		2,943			269			5,610			297
Dispositions/Other		1,459			6,306			4,496			19,055
Net Operating Income (NOI)	$	143,079		$	134,423		$	421,964		$	398,640

EBITDA EBITDA is defined by the Company as earnings before interest, taxes, depreciation and amortization, 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 operating properties including land, net of tax, and income (loss) allocated to non-controlling 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 September 30,						Nine months ended September 30,
	2015			2014			2015			2014
Net income attributable to common shareholders	$	37,044		$	38,283		$	188,722		$	113,591
Plus: Interest		23,265			22,967			72,288			68,846
Plus: Amortization of deferred financing costs		725			836			2,143			2,493
Plus: Depreciation and amortization		65,079			59,179			190,337			174,528
Plus: Income allocated to non-controlling interests from continuing operations		1,150			1,050			7,738			3,099
Plus: Income tax expense		498			353			1,334			1,228
Less: Gain on sale of operating properties, including land		-			(1,808	)		(85,192	)		(3,609	)
Less: Impairment associated with land holdings		-			-			-			1,152
Less: Equity in income of joint ventures		(1,574	)		(863	)		(4,487	)		(5,889	)
EBITDA	$	126,187		$	119,997		$	372,883		$	355,439

View source version on businesswire.com: http://www.businesswire.com/news/home/20151029006609/en/

Camden Property Trust
Kim Callahan, 713-354-2549

Business Wire

October 29, 2015 - 4:15 PM EDT

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Camden Property Trust Announces Third Quarter 2015 Operating Results

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Camden Property Trust Announces Third Quarter 2015 Operating Results

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