Toggle SGML Header (+)


Section 1: 8-K (8-K)

Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): July 25, 2019
CAMDEN PROPERTY TRUST
(Exact name of Registrant as Specified in Charter)
Texas
1-12110
76-6088377
(State or Other Jurisdiction of
Incorporation)
(Commission File Number)
(I.R.S. Employer
Identification Number)
11 Greenway Plaza, Suite 2400, Houston, Texas 77046
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (713) 354-2500
Not applicable
(Former Name or Former Address, if Changed Since Last Report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange on which registered
Common Shares of Beneficial Interest, $.01 par value
CPT
New York Stock Exchange
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). 
Emerging Growth Company
 
¨
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected to not use the extended transition period for complying with any new or revised financial accounting standards provided pursuant of Section 13(a) of the Exchange Act. ¨





Item 2.02    Results of Operations and Financial Condition.

On July 25, 2019, Camden Property Trust (the "Company") issued a press release announcing its consolidated financial results for the three and six months ended June 30, 2019. This press release refers to supplemental financial information available on the Company’s website. Copies of the press release and the supplemental information are furnished as Exhibits 99.1 and 99.2, respectively, to this report. This information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Item 9.01    Financial Statements and Exhibits.

(c)    Exhibits.

Exhibit
Number
Title
 
 
Press Release issued by Camden Property Trust dated July 25, 2019.
Supplemental Financial Information dated July 25, 2019.






SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: July 25, 2019
CAMDEN PROPERTY TRUST



By:    /s/ Michael P. Gallagher        
Michael P. Gallagher
Senior Vice President - Chief Accounting Officer






EXHIBIT INDEX


Exhibit
Number
Title
 
 
Press Release issued by Camden Property Trust dated July 25, 2019.
Supplemental Financial Information dated July 25, 2019.



(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
398895910_image1a01a02a33.jpg


CAMDEN PROPERTY TRUST ANNOUNCES SECOND QUARTER 2019 OPERATING RESULTS

Houston, Texas (July 25, 2019) - Camden Property Trust (NYSE:CPT) announced today operating results for the three and six months ended June 30, 2019. Net Income Attributable to Common Shareholders (“EPS”), Funds from Operations (“FFO”), and Adjusted Funds from Operations (“AFFO”) for the three and six months ended June 30, 2019 are detailed below. A reconciliation of EPS to FFO is included in the financial tables accompanying this press release.

 
Three Months Ended
Six Months Ended
 
June 30
June 30
Per Diluted Share
2019
2018
2019
2018
EPS
$0.43
$0.40
$0.82
$0.81
FFO
$1.28
$1.19
$2.50
$2.34
AFFO
$1.07
$1.00
$2.19
$2.04
 
Quarterly Growth
Sequential Growth
Year-To-Date Growth
Same Property Results
2Q19 vs. 2Q18
2Q19 vs. 1Q19
2019 vs. 2018
Revenues
3.4%
1.5%
3.5%
Expenses
2.0%
(1.3)%
2.9%
Net Operating Income ("NOI")
4.2%
3.1%
3.9%
Same Property Results
2Q19

2Q18

1Q19

Occupancy
96.1
%
95.7
%
95.8
%

“We are pleased to report another solid quarter of results for our company,” said Richard J. Campo, Camden’s Chairman and CEO. “Same property NOI growth and FFO per share were both better than anticipated for the second quarter. As a result, we have increased the midpoint of our 2019 FFO guidance by $0.02 to $5.09 per share, and raised the midpoint of our 2019 expected same property NOI growth from 3.40% to 3.75%.”

For 2019, the Company defines same property communities as communities owned and stabilized since January 1, 2018, excluding communities under redevelopment and properties held for sale. 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 at Camden Washingtonian in Gaithersburg, MD, and construction commenced at Camden Cypress Creek II in Cypress, TX, a joint venture project with 234 apartment homes.

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

% Leased

Community Name
Location
Units
Cost

as of 7/24/2019

Camden McGowen Station
Houston, TX
315
$90.9
83
%
Camden North End I
Phoenix, AZ
441
98.2

70
%
Camden Grandview II
Charlotte, NC
28
22.4

46
%
Total
 
784
$211.5

74
%

1


Development Communities - Construction Ongoing ($ in millions)
 
 
Total
Total
Community Name
Location
Units
Budget
Camden RiNo
Denver, CO
233
$75.0
Camden Downtown I
Houston, TX
271
132.0
Camden Lake Eola
Orlando, FL
360
120.0
Camden Buckhead
Atlanta, GA
365
160.0
Camden North End II
Phoenix, AZ
343
90.0
Camden Cypress Creek II (JV)
Cypress, TX
234
38.0
Total
 
1,806
$615.0

Acquisition Activity
During the quarter, Camden acquired approximately 4.3 acres of land in Charlotte, NC for approximately $10.9 million for the future development of approximately 400 apartment homes and acquired approximately 11.6 acres of land in Tempe, AZ for approximately $18.0 million for the future development of approximately 400 apartment homes. The Company also acquired Camden Rainey Street, a 326-home apartment community located in Austin, TX for approximately $120.4 million.

Capital Markets Transactions
In June 2019, the Company issued $600.0 million senior unsecured notes under its existing shelf registration statement. These ten-year notes were offered to the public at 99.751% of par value with a coupon of 3.150%. After giving effect to the settlement of the swap agreements which will be recognized over the first seven years of the notes and deducting the underwriting discounts and other estimated expenses of the offering, the effective annual interest rate on the notes is approximately 3.84% through June 2026, and approximately 3.28% thereafter, for an all-in average effective rate of approximately 3.67%. The Company received net proceeds of approximately $593.4 million, net of underwriting discounts and other estimated offering expenses.

Executive Officer Appointments
On July 24, 2019, Camden’s Board of Trust Managers appointed D. Keith Oden from President to Executive Vice Chairman of the Board, and H. Malcolm Stewart from Chief Operating Officer to President and Chief Operating Officer. Mr. Oden will retain his current role of providing strategic leadership, communicating and implementing the Company’s mission, and managing the Company’s operations. Mr. Stewart will continue to report to Mr. Oden and will retain his current responsibilities for overseeing the Company’s property operations, construction and facilities projects, strategic and business programs, and other day-to-day operational functions. These changes recognize Mr. Stewart’s long-term contributions to Camden’s success and, as part of good corporate governance and long-term succession planning, are intended to create an avenue for future promotions of other existing senior-level executives.

Earnings Guidance
Camden updated its earnings guidance for 2019 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for third quarter 2019 as detailed below.
 
3Q19
2019
2019 Midpoint
Per Diluted Share
Range
Range
Current
Prior
Change
EPS
$0.40 - $0.44
$1.63 - $1.75
$1.69
$1.64
$0.05
FFO
$1.26 - $1.30
$5.03 - $5.15
$5.09
$5.07
$0.02
 
 
2019
2019 Midpoint
Same Property Growth
 
Range
Current
Prior
Change
Revenues
 
3.15% - 3.65%
3.40%
3.40%
0.00%
Expenses
 
2.50% - 3.00%
2.75%
3.35%
(0.60)%
NOI
 
3.25% - 4.25%
3.75%
3.40%
0.35%

2


Camden intends to update its earnings guidance to the market on a quarterly basis. Additional information on the Company’s 2019 financial outlook and a reconciliation of expected EPS to expected FFO are included in the financial tables accompanying this press release.

Conference Call
Friday, July 26, 2019 at 10:00 AM CT
Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061
Passcode: 7002268
Webcast: https://services.choruscall.com/links/cpt190726.html

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 (713) 354-2787.

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 (the “Company”) 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 at the time of this publication, 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 primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns interests in and operates 165 properties containing 56,271 apartment homes across the United States. Upon completion of 6 properties currently under development, the Company’s portfolio will increase to 58,077 apartment homes in 171 properties. Camden was recently named by FORTUNE Magazine for the 12th consecutive year as one of the 100 Best Companies to Work For® in America, ranking #19.

For additional information, please contact Camden’s Investor Relations Department at (713) 354-2787 or access our website at camdenliving.com.


3



 
 
 
CAMDEN
 
OPERATING RESULTS
 
 
(In thousands, except per share amounts)
 
 
 

(Unaudited)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
2018
 
2019
2018
OPERATING DATA
 
 
 
 
 
 
 
 
 
 
 
Property revenues (a)
$255,761
$237,133
 
$504,328
$467,816
 
 
 
 
 
 
Property expenses
 
 
 
 
 
Property operating and maintenance
58,147

54,735

 
115,095

108,651

Real estate taxes
33,080

30,326

 
66,970

60,375

Total property expenses
91,227

85,061

 
182,065

169,026

 
 
 
 
 
 
Non-property income
 
 
 
 
 
Fee and asset management
1,867

1,826

 
3,710

3,824

Interest and other income
331

491

 
629

1,284

Income on deferred compensation plans
3,856

435

 
14,212

230

Total non-property income
6,054

2,752

 
18,551

5,338

 
 
 
 
 
 
Other expenses
 
 
 
 
 
Property management
6,093

6,473

 
12,750

13,112

Fee and asset management
1,522

1,088

 
2,706

2,053

General and administrative
13,261

12,272

 
26,569

24,495

Interest
19,349

20,607

 
39,819

40,981

Depreciation and amortization
84,646

75,569

 
164,920

145,793

Expense on deferred compensation plans
3,856

435

 
14,212

230

Total other expenses
128,727

116,444

 
260,976

226,664

 
 
 
 
 
 
Equity in income of joint ventures
1,909

1,872

 
3,821

3,701

Income from continuing operations before income taxes
43,770

40,252

 
83,659

81,165

Income tax expense
(228
)
(380
)
 
(396
)
(768
)
Net income
43,542

39,872

 
83,263

80,397

Less income allocated to non-controlling interests from continuing operations
(1,143
)
(1,201
)
 
(2,251
)
(2,331
)
Net income attributable to common shareholders

$42,399


$38,671

 

$81,012


$78,066

 
 
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 
 
 
 
 
Net income
$43,542
$39,872
 
$83,263
$80,397
Other comprehensive income
 
 
 
 
 
Unrealized gain (loss) on cash flow hedging activities
(7,060
)
5,181

 
(12,998
)
8,782

Reclassification of net (gain) loss on cash flow hedging activities, prior service cost and net loss on post retirement obligation
(351
)
34

 
(726
)
69

Comprehensive income
36,131

45,087

 
69,539

89,248

Less income allocated to non-controlling interests from continuing operations
(1,143
)
(1,201
)
 
(2,251
)
(2,331
)
Comprehensive income attributable to common shareholders

$34,988


$43,886

 

$67,288


$86,917

 
 
 
 
 
 
PER SHARE DATA
 
 
 
 
 
 
 
 
 
 
 
Total earnings per common share - basic

$0.43


$0.40

 

$0.83


$0.81

Total earnings per common share - diluted
0.43

0.40

 
0.82

0.81

 
 
 
 
 
 
Weighted average number of common shares outstanding:
 
 
 
 
 
     Basic
98,903

95,243

 
97,903

95,155

     Diluted
98,997

95,337

 
98,024

95,289


(a) Upon our adoption of Accounting Standard Codification 842 - “Leases” effective January 1, 2019, we elected the practical expedient to not separate lease and non-lease components and thus present rental revenue in a single line item in our consolidated statements of income and comprehensive income.  For the three months ended June 30, 2019, we recognized $255.7 million of property revenue which consisted of approximately $226.2 million of rental revenue and approximately $29.5 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts.   This compares to property revenue of $237.1 million recognized for the three months ended June 30, 2018, made up of approximately $208.6 million of rental revenue and approximately $28.5 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. For the six months ended June 30, 2019, we recognized $504.3 million of property revenue which consisted of approximately $446.3 million of rental revenue and approximately $58.0 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts.   This compares to property revenue of $467.8 million recognized for the six months ended June 30, 2018, made up of approximately $412.1 million of rental revenue and approximately $55.7 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts.

Note: Please refer to the following pages for definitions and reconciliations of all non-GAAP financial measures presented in this document.


4



 
 
 
CAMDEN
 
FUNDS FROM OPERATIONS
 
 
(In thousands, except per share and property data amounts)
 
 
 

(Unaudited)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
2018
 
2019
2018
FUNDS FROM OPERATIONS
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to common shareholders

$42,399


$38,671

 

$81,012


$78,066

 Real estate depreciation and amortization
82,796

73,980

 
161,471

142,575

 Adjustments for unconsolidated joint ventures
2,260

2,257

 
4,491

4,504

 Income allocated to non-controlling interests
1,180

1,201

 
2,324

2,331

     Funds from operations

$128,635


$116,109

 

$249,298


$227,476

 
 
 
 
 
 
     Less: recurring capitalized expenditures (a)
(21,166
)
(19,190
)
 
(30,821
)
(29,189
)
 
 
 
 
 
 
     Adjusted funds from operations

$107,469


$96,919

 

$218,477


$198,287

 
 
 
 
 
 
PER SHARE DATA
 
 
 
 
 
Funds from operations - diluted

$1.28


$1.19

 

$2.50


$2.34

Adjusted funds from operations - diluted
1.07

1.00

 
2.19

2.04

Distributions declared per common share
0.80

0.77

 
1.60

1.54

 
 
 
 
 
 
Weighted average number of common shares outstanding:
 
 
 
 
 
FFO/AFFO - diluted
100,750

97,220

 
99,779

97,172

 
 
 
 
 
 
PROPERTY DATA
 
 
 
 
 
Total operating properties (end of period) (b)
165

158

 
165

158

Total operating apartment homes in operating properties (end of period) (b)
56,271

54,181

 
56,271

54,181

Total operating apartment homes (weighted average)
48,565

46,682

 
48,261

46,518


(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, if any.




























Note: Please refer to the following pages for definitions and reconciliations of all non-GAAP financial measures presented in this document.


5



 
 
 
CAMDEN
 
BALANCE SHEETS
 
 
(In thousands)
 
 
 

(Unaudited)
 
Jun 30,
2019

Mar 31,
2019

Dec 31,
2018

Sep 30,
2018

Jun 30,
2018

ASSETS
 
 
 
 
 
Real estate assets, at cost
 
 
 
 
 
Land

$1,158,342


$1,127,485


$1,098,526


$1,088,293


$1,066,077

Buildings and improvements
7,192,644

7,057,101

6,935,971

6,828,068

6,620,169

 
8,350,986

8,184,586

8,034,497

7,916,361

7,686,246

Accumulated depreciation
(2,558,690
)
(2,479,875
)
(2,403,149
)
(2,328,092
)
(2,255,737
)
Net operating real estate assets
5,792,296

5,704,711

5,631,348

5,588,269

5,430,509

Properties under development, including land
397,418

307,981

293,978

315,904

373,350

Investments in joint ventures
21,313

21,955

22,283

24,664

26,205

Total real estate assets
6,211,027

6,034,647

5,947,609

5,928,837

5,830,064

Accounts receivable – affiliates
22,297

21,337

22,920

22,605

23,473

Other assets, net (a)(b)
233,335

217,663

205,454

228,468

204,717

Cash and cash equivalents
149,551

6,092

34,378

8,529

64,071

Restricted cash
5,392

5,655

9,225

10,061

9,581

Total assets

$6,621,602


$6,285,394


$6,219,586


$6,198,500


$6,131,906

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
Liabilities
 
 
 
 
 
Notes payable
 
 
 
 
 
Unsecured

$2,431,336


$2,079,136


$1,836,427


$1,394,178


$1,339,659

Secured
45,467

45,683

485,176

865,431

865,629

Accounts payable and accrued expenses (b)
128,371

126,964

146,866

140,046

127,777

Accrued real estate taxes
59,525

30,891

54,358

70,174

52,461

Distributions payable
80,767

80,771

74,982

74,976

75,071

Other liabilities (b)(c)
187,368

195,629

183,999

178,898

156,767

Total liabilities
2,932,834

2,559,074

2,781,808

2,723,703

2,617,364

 
 
 
 
 
 
Non-qualified deferred compensation share awards


52,674

60,874

85,938

 
 
 
 
 
 
Equity
 
 
 
 
 
Common shares of beneficial interest
1,065

1,064

1,031

1,030

1,027

Additional paid-in capital
4,533,667

4,527,659

4,154,763

4,147,278

4,132,404

Distributions in excess of net income attributable to common shareholders
(563,834
)
(526,856
)
(495,496
)
(466,512
)
(436,575
)
Treasury shares, at cost
(348,480
)
(349,655
)
(355,804
)
(355,825
)
(355,752
)
Accumulated other comprehensive income (loss) (d)
(6,795
)
616

6,929

14,031

8,794

Total common equity
3,615,623

3,652,828

3,311,423

3,340,002

3,349,898

Non-controlling interests
73,145

73,492

73,681

73,921

78,706

Total equity
3,688,768

3,726,320

3,385,104

3,413,923

3,428,604

Total liabilities and equity

$6,621,602


$6,285,394


$6,219,586


$6,198,500


$6,131,906

 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 

 
 
 
 
 
 
(a) Includes net deferred charges of:

$4,345


$5,081


$242


$538


$724

 
 
 
 
 
 
(b) Includes net asset/(liability) and interest receivable/(payable) fair value of derivative instruments:

$—


($13,370
)

($7,433
)

$15,674


$10,472

 
 
 
 
 
 
(c) Includes deferred revenues of:

$581


$659


$552


$603


$659

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


6



 
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 depreciation and amortization related to real estate, gains (or losses) from the sale of certain real estate assets (depreciable real estate), impairments of certain real estate assets (depreciable real estate), gains or losses from change in control, and adjustments for unconsolidated joint ventures to reflect FFO on the same basis. 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 depreciable real estate, 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. The FFO definition as restated in 2018 allows companies an option to also exclude gains and losses on sales or impairment charges on real estate assets incidental to a company's business. We did not elect this option, and as a result, the definition of FFO as restated did not have an impact on our calculation upon adoption on January 1, 2019. 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. Our definition of recurring capital expenditures may differ from other REITs, and there can be no assurance our basis for computing this measure is comparable to other REITs. A reconciliation of FFO to AFFO is provided below:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
2018
 
2019
2018
Net income attributable to common shareholders

$42,399


$38,671

 

$81,012


$78,066

 Real estate depreciation and amortization
82,796

73,980

 
161,471

142,575

 Adjustments for unconsolidated joint ventures
2,260

2,257

 
4,491

4,504

 Income allocated to non-controlling interests
1,180

1,201

 
2,324

2,331

Funds from operations

$128,635


$116,109

 

$249,298


$227,476

 
 
 
 
 
 
Less: recurring capitalized expenditures
(21,166
)
(19,190
)
 
(30,821
)
(29,189
)
 
 
 
 
 
 
Adjusted funds from operations

$107,469


$96,919

 

$218,477


$198,287

 
 
 
 
 
 
Weighted average number of common shares outstanding:
 
 
 
 
 
EPS diluted
98,997

95,337

 
98,024

95,289

FFO/AFFO diluted
100,750

97,220

 
99,779

97,172

 
 
 
 
 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
2018
 
2019
2018
Total Earnings Per Common Share - Diluted
$0.43
$0.40
 

$0.82


$0.81

 Real estate depreciation and amortization
0.82

0.76

 
1.62

1.47

 Adjustments for unconsolidated joint ventures
0.02

0.02

 
0.05

0.05

 Income allocated to non-controlling interests
0.01

0.01

 
0.01

0.01

FFO per common share - Diluted

$1.28


$1.19

 

$2.50


$2.34

 
 
 
 
 
 
Less: recurring capitalized expenditures
(0.21
)
(0.19
)
 
(0.31
)
(0.30
)
 
 
 
 
 
 
AFFO per common share - Diluted

$1.07


$1.00

 

$2.19


$2.04

 




7



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

(Unaudited)

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). Guidance excludes gains, if any, on properties not currently held for sale due to the uncertain timing and extent of property dispositions and the resulting gains/losses on sales. A reconciliation of the ranges provided for diluted EPS to expected FFO per diluted share is provided below:
 
3Q19

Range
 
2019

Range
 
Low
High
 
Low
High
Expected earnings per common share - diluted

$0.40


$0.44

 

$1.63


$1.75

Expected real estate depreciation and amortization
0.83

0.83

 
3.27

3.27

Expected adjustments for unconsolidated joint ventures
0.02

0.02

 
0.09

0.09

Expected income allocated to non-controlling interests
0.01

0.01

 
0.04

0.04

Expected FFO per share - diluted

$1.26


$1.30

 

$5.03


$5.15


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 property revenue less property operating and maintenance expenses less real estate taxes. NOI is further detailed in the Components of Property NOI schedules on page 11 of the supplement. 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 June 30,
 
Six months ended June 30,
 
2019
2018
 
2019
2018
Net income

$43,542


$39,872

 

$83,263


$80,397

Less: Fee and asset management income
(1,867
)
(1,826
)
 
(3,710
)
(3,824
)
Less: Interest and other income
(331
)
(491
)
 
(629
)
(1,284
)
Less: Income on deferred compensation plans
(3,856
)
(435
)
 
(14,212
)
(230
)
Plus: Property management expense
6,093

6,473

 
12,750

13,112

Plus: Fee and asset management expense
1,522

1,088

 
2,706

2,053

Plus: General and administrative expense
13,261

12,272

 
26,569

24,495

Plus: Interest expense
19,349

20,607

 
39,819

40,981

Plus: Depreciation and amortization expense
84,646

75,569

 
164,920

145,793

Plus: Expense on deferred compensation plans
3,856

435

 
14,212

230

Less: Equity in income of joint ventures
(1,909
)
(1,872
)
 
(3,821
)
(3,701
)
Plus: Income tax expense
228

380

 
396

768

NOI

$164,534


$152,072

 

$322,263


$298,790

 
 
 
 
 
 
"Same Property" Communities

$138,897


$133,353

 

$273,579


$263,332

Non-"Same Property" Communities
22,781

17,300

 
43,339

32,638

Development and Lease-Up Communities
1,482

79

 
2,467

77

Dispositions/Other
1,374

1,340

 
2,878

2,743

NOI

$164,534


$152,072

 

$322,263


$298,790









8



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

(Unaudited)

Adjusted EBITDA

Adjusted 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 operating properties including land, net of tax, loss on early retirement of debt and income (loss) allocated to non-controlling interests. The Company considers Adjusted 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. Annualized Adjusted EBITDA is Adjusted EBITDA as reported for the period multiplied by 4 for quarter results or 2 for 6 month results. A reconciliation of net income attributable to common shareholders to Adjusted EBITDA is provided below:
 
Three months ended June 30,
 
Six months ended June 30,
 
2019
2018
 
2019
2018
Net income attributable to common shareholders

$42,399


$38,671

 

$81,012


$78,066

Plus: Interest expense
19,349

20,607

 
39,819

40,981

Plus: Depreciation and amortization expense
84,646

75,569

 
164,920

145,793

Plus: Income allocated to non-controlling interests from continuing operations
1,143

1,201

 
2,251

2,331

Plus: Income tax expense
228

380

 
396

768

Less: Equity in income of joint ventures
(1,909
)
(1,872
)
 
(3,821
)
(3,701
)
Adjusted EBITDA

$145,856


$134,556

 

$284,577


$264,238

Annualized Adjusted EBITDA

$583,424


$538,224

 

$569,154


$528,476


Net Debt to Annualized Adjusted EBITDA

The Company believes Net Debt to Annualized Adjusted EBITDA to be an appropriate supplemental measure of evaluating balance sheet leverage. Net Debt is defined by the Company as the average monthly balance of Total Debt during the period, less the average monthly balance of Cash and Cash Equivalents during the period. The following tables reconcile average Total debt to Net debt and computes the ratio to Adjusted EBITDA for the following periods:


Net Debt:

 
 
 
Average monthly balance for
 
Average monthly balance for
 
 
 
the three months ended June 30,
 
the six months ended June 30,
 
 
 
2019
2018
 
2019
2018
Unsecured notes payable
 
 

$2,323,439


$1,339,486

 

$2,202,336


$1,339,228

Secured notes payable
 
 
45,539

865,686

 
158,737

865,772

Total debt
 
 
2,368,978

2,205,172

 
2,361,073

2,205,000

Less: Cash and cash equivalents
 
 
(89,879
)
(42,275
)
 
(114,314
)
(76,948
)
Net debt
 
 

$2,279,099


$2,162,897

 

$2,246,759


$2,128,052


Net Debt to Annualized Adjusted EBITDA:

 
 
 
Three months ended June 30,
 
Six months ended June 30,
 
 
 
2019
2018
 
2019
2018
Net debt
 
 

$2,279,099


$2,162,897

 

$2,246,759


$2,128,052

Annualized Adjusted EBITDA
 
 
583,424

538,224

 
569,154

528,476

Net Debt to Annualized Adjusted EBITDA
 
 
3.9x

4.0x

 
3.9x

4.0x





9
(Back To Top)

Section 3: EX-99.2 (EXHIBIT 99.2)

Exhibit


398895910_picture2a19.jpg




 
 
 
CAMDEN
 
TABLE OF CONTENTS
 
 
 


Page
Press Release Text
Financial Highlights
Operating Results
Funds from Operations
Balance Sheets
Portfolio Statistics
Components of Property Net Operating Income
"Same Property" Second Quarter Comparisons
"Same Property" Sequential Quarter Comparisons
"Same Property" Year to Date Comparisons
"Same Property" Operating Expense Detail & Comparisons
Joint Venture Operations
Current Development Communities
Development Pipeline
Redevelopment Summary
Acquisitions and Dispositions
Debt Analysis
Debt Maturity Analysis
Debt Covenant Analysis
Unconsolidated Real Estate Investments Debt Analysis
Unconsolidated Real Estate Investments Debt Maturity Analysis
Capitalized Expenditures & Maintenance Expense
Non-GAAP Financial Measures - Definitions & Reconciliations
Other Data
Community Table
            





In addition to historical information, this document 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 (the “Company”) 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 this document represent management’s opinions at the time of this publication, and the Company assumes no obligation to update or supplement these statements because of subsequent events.


2



398895910_image1a01a02a33.jpg


CAMDEN PROPERTY TRUST ANNOUNCES SECOND QUARTER 2019 OPERATING RESULTS

Houston, Texas (July 25, 2019) - Camden Property Trust (NYSE:CPT) announced today operating results for the three and six months ended June 30, 2019. Net Income Attributable to Common Shareholders (“EPS”), Funds from Operations (“FFO”), and Adjusted Funds from Operations (“AFFO”) for the three and six months ended June 30, 2019 are detailed below. A reconciliation of EPS to FFO is included in the financial tables accompanying this press release.

 
Three Months Ended
Six Months Ended
 
June 30
June 30
Per Diluted Share
2019
2018
2019
2018
EPS
$0.43
$0.40
$0.82
$0.81
FFO
$1.28
$1.19
$2.50
$2.34
AFFO
$1.07
$1.00
$2.19
$2.04
 
Quarterly Growth
Sequential Growth
Year-To-Date Growth
Same Property Results
2Q19 vs. 2Q18
2Q19 vs. 1Q19
2019 vs. 2018
Revenues
3.4%
1.5%
3.5%
Expenses
2.0%
(1.3)%
2.9%
Net Operating Income ("NOI")
4.2%
3.1%
3.9%
Same Property Results
2Q19

2Q18

1Q19

Occupancy
96.1
%
95.7
%
95.8
%

“We are pleased to report another solid quarter of results for our company,” said Richard J. Campo, Camden’s Chairman and CEO. “Same property NOI growth and FFO per share were both better than anticipated for the second quarter. As a result, we have increased the midpoint of our 2019 FFO guidance by $0.02 to $5.09 per share, and raised the midpoint of our 2019 expected same property NOI growth from 3.40% to 3.75%.”

For 2019, the Company defines same property communities as communities owned and stabilized since January 1, 2018, excluding communities under redevelopment and properties held for sale. 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 at Camden Washingtonian in Gaithersburg, MD, and construction commenced at Camden Cypress Creek II in Cypress, TX, a joint venture project with 234 apartment homes.

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

% Leased

Community Name
Location
Units
Cost

as of 7/24/2019

Camden McGowen Station
Houston, TX
315
$90.9
83
%
Camden North End I
Phoenix, AZ
441
98.2

70
%
Camden Grandview II
Charlotte, NC
28
22.4

46
%
Total
 
784
$211.5

74
%


3



Development Communities - Construction Ongoing ($ in millions)
 
 
Total
Total
Community Name
Location
Units
Budget
Camden RiNo
Denver, CO
233
$75.0
Camden Downtown I
Houston, TX
271
132.0
Camden Lake Eola
Orlando, FL
360
120.0
Camden Buckhead
Atlanta, GA
365
160.0
Camden North End II
Phoenix, AZ
343
90.0
Camden Cypress Creek II (JV)
Cypress, TX
234
38.0
Total
 
1,806
$615.0

Acquisition Activity
During the quarter, Camden acquired approximately 4.3 acres of land in Charlotte, NC for approximately $10.9 million for the future development of approximately 400 apartment homes and acquired approximately 11.6 acres of land in Tempe, AZ for approximately $18.0 million for the future development of approximately 400 apartment homes. The Company also acquired Camden Rainey Street, a 326-home apartment community located in Austin, TX for approximately $120.4 million.

Capital Markets Transactions
In June 2019, the Company issued $600.0 million senior unsecured notes under its existing shelf registration statement. These ten-year notes were offered to the public at 99.751% of par value with a coupon of 3.150%. After giving effect to the settlement of the swap agreements which will be recognized over the first seven years of the notes and deducting the underwriting discounts and other estimated expenses of the offering, the effective annual interest rate on the notes is approximately 3.84% through June 2026, and approximately 3.28% thereafter, for an all-in average effective rate of approximately 3.67%. The Company received net proceeds of approximately $593.4 million, net of underwriting discounts and other estimated offering expenses.

Executive Officer Appointments
On July 24, 2019, Camden’s Board of Trust Managers appointed D. Keith Oden from President to Executive Vice Chairman of the Board, and H. Malcolm Stewart from Chief Operating Officer to President and Chief Operating Officer. Mr. Oden will retain his current role of providing strategic leadership, communicating and implementing the Company’s mission, and managing the Company’s operations. Mr. Stewart will continue to report to Mr. Oden and will retain his current responsibilities for overseeing the Company’s property operations, construction and facilities projects, strategic and business programs, and other day-to-day operational functions. These changes recognize Mr. Stewart’s long-term contributions to Camden’s success and, as part of good corporate governance and long-term succession planning, are intended to create an avenue for future promotions of other existing senior-level executives.

Earnings Guidance
Camden updated its earnings guidance for 2019 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for third quarter 2019 as detailed below.
 
3Q19
2019
2019 Midpoint
Per Diluted Share
Range
Range
Current
Prior
Change
EPS
$0.40 - $0.44
$1.63 - $1.75
$1.69
$1.64
$0.05
FFO
$1.26 - $1.30
$5.03 - $5.15
$5.09
$5.07
$0.02
 
 
2019
2019 Midpoint
Same Property Growth
 
Range
Current
Prior
Change
Revenues
 
3.15% - 3.65%
3.40%
3.40%
0.00%
Expenses
 
2.50% - 3.00%
2.75%
3.35%
(0.60)%
NOI
 
3.25% - 4.25%
3.75%
3.40%
0.35%

4



Camden intends to update its earnings guidance to the market on a quarterly basis. Additional information on the Company’s 2019 financial outlook and a reconciliation of expected EPS to expected FFO are included in the financial tables accompanying this press release.

Conference Call
Friday, July 26, 2019 at 10:00 AM CT
Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061
Passcode: 7002268
Webcast: https://services.choruscall.com/links/cpt190726.html

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 (713) 354-2787.

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 (the “Company”) 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 at the time of this publication, 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 primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns interests in and operates 165 properties containing 56,271 apartment homes across the United States. Upon completion of 6 properties currently under development, the Company’s portfolio will increase to 58,077 apartment homes in 171 properties. Camden was recently named by FORTUNE Magazine for the 12th consecutive year as one of the 100 Best Companies to Work For® in America, ranking #19.

For additional information, please contact Camden’s Investor Relations Department at (713) 354-2787 or access our website at camdenliving.com.


5


 
 
 
CAMDEN
 
FINANCIAL HIGHLIGHTS
 
 
(In thousands, except per share, property data amounts and ratios)
 
 
 

(Unaudited)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
2018
 
2019
2018
Property revenues

$255,761


$237,133

 

$504,328


$467,816

 
 
 
 
 
 
Adjusted EBITDA
145,856

134,556

 
284,577

264,238

 
 
 
 
 
 
Net income attributable to common shareholders
42,399

38,671

 
81,012

78,066

      Per share - basic
0.43

0.40

 
0.83

0.81

      Per share - diluted
0.43

0.40

 
0.82

0.81

 
 
 
 
 
 
Funds from operations
128,635

116,109

 
249,298

227,476

       Per share - diluted
1.28

1.19

 
2.50

2.34

 
 
 
 
 
 
Adjusted funds from operations
107,469

96,919

 
218,477

198,287

       Per share - diluted
1.07

1.00

 
2.19

2.04

 
 
 
 
 
 
Dividends per share
0.80

0.77

 
1.60

1.54

Dividend payout ratio (FFO)
62.5
%
64.7
%
 
64.0
%
65.8
%
 
 
 
 
 
 
Interest expensed
19,349

20,607

 
39,819

40,981

Interest capitalized
3,194

3,738

 
5,926

7,431

    Total interest incurred
22,543

24,345

 
45,745

48,412

 
 
 
 
 
 
Principal amortization
215

169

 
481

341

 
 
 
 
 
 
Net Debt to Annualized Adjusted EBITDA (a)
3.9x

4.0x

 
3.9x

4.0x

Interest expense coverage ratio
7.5x

6.5x

 
7.1x

6.4x

Total interest coverage ratio
6.5x

5.5x

 
6.2x

5.5x

Fixed charge expense coverage ratio
7.5x

6.5x

 
7.1x

6.4x

Total fixed charge coverage ratio
6.4x

5.5x

 
6.2x

5.4x

Unencumbered real estate assets (at cost) to unsecured debt ratio
3.6x

4.9x

 
3.6x

4.9x

 
 

 
 
 
Same property NOI increase (b)
4.2
%
3.2
%
 
3.9
%
3.6
%
  (# of apartment homes included)
42,618

41,968

 
42,618

41,968

 
 
 
 
 
 
Gross turnover of apartment homes (annualized)
56
%
59
%
 
52
%
54
%
Net turnover (excludes on-site transfers and transfers to other Camden communities)
46
%
49
%
 
42
%
44
%
 
 
 
 
 
 
 
 
 
As of June 30,
 


 
2019
2018
Total assets
 
 
 

$6,621,602


$6,131,906

Total debt
 
 
 

$2,476,803


$2,205,288

Common and common equivalent shares, outstanding end of period (c)
 
 
 
100,789

97,266

Share price, end of period
 
 
 

$104.39


$91.13

Book equity value, end of period (d)
 
 
 

$3,688,768


$3,514,542

Market equity value, end of period (e)
 
 
 

$10,521,364


$8,863,851

 
(a) Net Debt is defined by the Company as the average monthly balance of Total Debt during the period, less the average monthly balance of Cash and Cash Equivalents during the period. Annualized Adjusted EBITDA is Adjusted EBITDA as reported for the period multiplied by either 4 for quarter results or 2 for 6 month results.
   
(b) "Same Property" Communities are communities which were owned by the Company and stabilized since January 1, 2018, excluding communities under redevelopment and properties held for sale.
  
(c) Includes at June 30, 2019: 99,036 common shares (including 112 common share equivalents related to share awards), plus 1,753 common share equivalents upon the assumed conversion of non-controlling units.
 
(d) Includes: common shares, common units, common share equivalents, and non-qualified deferred compensation share awards.
 
(e) Includes: common shares, common units, and common share equivalents.
 
Note: Please refer to pages 27, 28 and 29 for definitions and reconciliations of all non-GAAP financial measures presented in this document.

6


 
 
 
CAMDEN
 
OPERATING RESULTS
 
 
(In thousands, except per share amounts)
 
 
 

(Unaudited)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
2018
 
2019
2018
OPERATING DATA
 
 
 
 
 
 
 
 
 
 
 
Property revenues (a)
$255,761
$237,133
 
$504,328
$467,816
 
 
 
 
 
 
Property expenses
 
 
 
 
 
Property operating and maintenance
58,147

54,735

 
115,095

108,651

Real estate taxes
33,080

30,326

 
66,970

60,375

Total property expenses
91,227

85,061

 
182,065

169,026

 
 
 
 
 
 
Non-property income
 
 
 
 
 
Fee and asset management
1,867

1,826

 
3,710

3,824

Interest and other income
331

491

 
629

1,284

Income on deferred compensation plans
3,856

435

 
14,212

230

Total non-property income
6,054

2,752

 
18,551

5,338

 
 
 
 
 
 
Other expenses
 
 
 
 
 
Property management
6,093

6,473

 
12,750

13,112

Fee and asset management
1,522

1,088

 
2,706

2,053

General and administrative
13,261

12,272

 
26,569

24,495

Interest
19,349

20,607

 
39,819

40,981

Depreciation and amortization
84,646

75,569

 
164,920

145,793

Expense on deferred compensation plans
3,856

435

 
14,212

230

Total other expenses
128,727

116,444

 
260,976

226,664

 
 
 
 
 
 
Equity in income of joint ventures
1,909

1,872

 
3,821

3,701

Income from continuing operations before income taxes
43,770

40,252

 
83,659

81,165

Income tax expense
(228
)
(380
)
 
(396
)
(768
)
Net income
43,542

39,872

 
83,263

80,397

Less income allocated to non-controlling interests from continuing operations
(1,143
)
(1,201
)
 
(2,251
)
(2,331
)
Net income attributable to common shareholders

$42,399


$38,671

 

$81,012


$78,066

 
 
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 
 
 
 
 
Net income
$43,542
$39,872
 
$83,263
$80,397
Other comprehensive income
 
 
 
 
 
Unrealized gain (loss) on cash flow hedging activities
(7,060
)
5,181

 
(12,998
)
8,782

Reclassification of net (gain) loss on cash flow hedging activities, prior service cost and net loss on post retirement obligation
(351
)
34

 
(726
)
69

Comprehensive income
36,131

45,087

 
69,539

89,248

Less income allocated to non-controlling interests from continuing operations
(1,143
)
(1,201
)
 
(2,251
)
(2,331
)
Comprehensive income attributable to common shareholders

$34,988


$43,886

 

$67,288


$86,917

 
 
 
 
 
 
PER SHARE DATA
 
 
 
 
 
 
 
 
 
 
 
Total earnings per common share - basic

$0.43


$0.40

 

$0.83


$0.81

Total earnings per common share - diluted
0.43

0.40

 
0.82

0.81

 
 
 
 
 
 
Weighted average number of common shares outstanding:
 
 
 
 
 
     Basic
98,903

95,243

 
97,903

95,155

     Diluted
98,997

95,337

 
98,024

95,289


(a) Upon our adoption of Accounting Standard Codification 842 - “Leases” effective January 1, 2019, we elected the practical expedient to not separate lease and non-lease components and thus present rental revenue in a single line item in our consolidated statements of income and comprehensive income.  For the three months ended June 30, 2019, we recognized $255.7 million of property revenue which consisted of approximately $226.2 million of rental revenue and approximately $29.5 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts.   This compares to property revenue of $237.1 million recognized for the three months ended June 30, 2018, made up of approximately $208.6 million of rental revenue and approximately $28.5 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. For the six months ended June 30, 2019, we recognized $504.3 million of property revenue which consisted of approximately $446.3 million of rental revenue and approximately $58.0 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts.   This compares to property revenue of $467.8 million recognized for the six months ended June 30, 2018, made up of approximately $412.1 million of rental revenue and approximately $55.7 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts.

Note: Please refer to pages 27, 28 and 29 for definitions and reconciliations of all non-GAAP financial measures presented in this document.

7


 
 
 
CAMDEN
 
FUNDS FROM OPERATIONS
 
 
(In thousands, except per share and property data amounts)
 
 
 

(Unaudited)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
2018
 
2019
2018
FUNDS FROM OPERATIONS
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to common shareholders

$42,399


$38,671

 

$81,012


$78,066

 Real estate depreciation and amortization
82,796

73,980

 
161,471

142,575

 Adjustments for unconsolidated joint ventures
2,260

2,257

 
4,491

4,504

 Income allocated to non-controlling interests
1,180

1,201

 
2,324

2,331

     Funds from operations

$128,635


$116,109

 

$249,298


$227,476

 
 
 
 
 
 
     Less: recurring capitalized expenditures (a)
(21,166
)
(19,190
)
 
(30,821
)
(29,189
)
 
 
 
 
 
 
     Adjusted funds from operations

$107,469


$96,919

 

$218,477


$198,287

 
 
 
 
 
 
PER SHARE DATA
 
 
 
 
 
Funds from operations - diluted

$1.28


$1.19

 

$2.50


$2.34

Adjusted funds from operations - diluted
1.07

1.00

 
2.19

2.04

Distributions declared per common share
0.80

0.77

 
1.60

1.54

 
 
 
 
 
 
Weighted average number of common shares outstanding:
 
 
 
 
 
FFO/AFFO - diluted
100,750

97,220

 
99,779

97,172

 
 
 
 
 
 
PROPERTY DATA
 
 
 
 
 
Total operating properties (end of period) (b)
165

158

 
165

158

Total operating apartment homes in operating properties (end of period) (b)
56,271

54,181

 
56,271

54,181

Total operating apartment homes (weighted average)
48,565

46,682

 
48,261

46,518


(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, if any.




























Note: Please refer to pages 27, 28 and 29 for definitions and reconciliations of all non-GAAP financial measures presented in this document.

8


 
 
 
CAMDEN
 
BALANCE SHEETS
 
 
(In thousands)
 
 
 

(Unaudited)
 
Jun 30,
2019

Mar 31,
2019

Dec 31,
2018

Sep 30,
2018

Jun 30,
2018

ASSETS
 
 
 
 
 
Real estate assets, at cost
 
 
 
 
 
Land

$1,158,342


$1,127,485


$1,098,526


$1,088,293


$1,066,077

Buildings and improvements
7,192,644

7,057,101

6,935,971

6,828,068

6,620,169

 
8,350,986

8,184,586

8,034,497

7,916,361

7,686,246

Accumulated depreciation
(2,558,690
)
(2,479,875
)
(2,403,149
)
(2,328,092
)
(2,255,737
)
Net operating real estate assets
5,792,296

5,704,711

5,631,348

5,588,269

5,430,509

Properties under development, including land
397,418

307,981

293,978

315,904

373,350

Investments in joint ventures
21,313

21,955

22,283

24,664

26,205

Total real estate assets
6,211,027

6,034,647

5,947,609

5,928,837

5,830,064

Accounts receivable – affiliates
22,297

21,337

22,920

22,605

23,473

Other assets, net (a)(b)
233,335

217,663

205,454

228,468

204,717

Cash and cash equivalents
149,551

6,092

34,378

8,529

64,071

Restricted cash
5,392

5,655

9,225

10,061

9,581

Total assets

$6,621,602


$6,285,394


$6,219,586


$6,198,500


$6,131,906

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
Liabilities
 
 
 
 
 
Notes payable
 
 
 
 
 
Unsecured

$2,431,336


$2,079,136


$1,836,427


$1,394,178


$1,339,659

Secured
45,467

45,683

485,176

865,431

865,629

Accounts payable and accrued expenses (b)
128,371

126,964

146,866

140,046

127,777

Accrued real estate taxes
59,525

30,891

54,358

70,174

52,461

Distributions payable
80,767

80,771

74,982

74,976

75,071

Other liabilities (b)(c)
187,368

195,629

183,999

178,898

156,767

Total liabilities
2,932,834

2,559,074

2,781,808

2,723,703

2,617,364

 
 
 
 
 
 
Non-qualified deferred compensation share awards


52,674

60,874

85,938

 
 
 
 
 
 
Equity
 
 
 
 
 
Common shares of beneficial interest
1,065

1,064

1,031

1,030

1,027

Additional paid-in capital
4,533,667

4,527,659

4,154,763

4,147,278

4,132,404

Distributions in excess of net income attributable to common shareholders
(563,834
)
(526,856
)
(495,496
)
(466,512
)
(436,575
)
Treasury shares, at cost
(348,480
)
(349,655
)
(355,804
)
(355,825
)
(355,752
)
Accumulated other comprehensive income (loss) (d)
(6,795
)
616

6,929

14,031

8,794

Total common equity
3,615,623

3,652,828

3,311,423

3,340,002

3,349,898

Non-controlling interests
73,145

73,492

73,681

73,921

78,706

Total equity
3,688,768

3,726,320

3,385,104

3,413,923

3,428,604

Total liabilities and equity

$6,621,602


$6,285,394


$6,219,586


$6,198,500


$6,131,906

 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 

 
 
 
 
 
 
(a) Includes net deferred charges of:

$4,345


$5,081


$242


$538


$724

 
 
 
 
 
 
(b) Includes net asset/(liability) and interest receivable/(payable) fair value of derivative instruments:

$—


($13,370
)

($7,433
)

$15,674


$10,472

 
 
 
 
 
 
(c) Includes deferred revenues of:

$581


$659


$552


$603


$659

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

9


 
 
 
CAMDEN
 
PORTFOLIO STATISTICS
 
 
 

(Unaudited)

COMMUNITY PORTFOLIO AT JUNE 30, 2019 (in apartment homes)
 
Fully Consolidated
 
Non-Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
"Same Property"
Non-"Same Property" (a)
Completed in Lease-up
Under Construction
Total
 
Operating
Under Construction
Total
 
Grand Total
D.C. Metro (b)
4,655

1,926



6,581

 
281


281

 
6,862

Houston, TX
5,912


315

271

6,498

 
2,522

234

2,756

 
9,254

Atlanta, GA
4,262<