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Section 1: 8-K (8-K)

Document
false0000906345 0000906345 2020-01-30 2020-01-30


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): January 30, 2020
CAMDEN PROPERTY TRUST
(Exact name of Registrant as Specified in Charter)
TX
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, TX 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)
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))
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
NYSE
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 January 30, 2020, Camden Property Trust (the "Company") issued a press release announcing its consolidated financial results for the three and twelve months ended December 31, 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 January 30, 2020.
Supplemental Financial Information dated January 30, 2020.
104
Cover Page Interactive Data File (formatted as Inline XBRL)






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: January 30, 2020
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 January 30, 2020.
Supplemental Financial Information dated January 30, 2020.
104
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).



(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
402539358_image1a01a02a39.jpg

CAMDEN PROPERTY TRUST ANNOUNCES 2019 OPERATING RESULTS,
2020 FINANCIAL OUTLOOK, AND FIRST QUARTER 2020 DIVIDEND

Houston, Texas (January 30, 2020) - Camden Property Trust (NYSE:CPT) (the "Company") announced today operating results for the three and twelve months ended December 31, 2019. Net Income Attributable to Common Shareholders (“EPS”), Funds from Operations (“FFO”), and Adjusted Funds from Operations (“AFFO”) for the three and twelve months ended December 31, 2019 are detailed below. A reconciliation of EPS to FFO is included in the financial tables accompanying this press release.

 
Three Months Ended
Twelve Months Ended
 
December 31
December 31
Per Diluted Share
2019
2018
2019
2018
EPS
$0.95
$0.41
$2.22
$1.63
FFO
$1.24
$1.23
$5.04
$4.77
AFFO
$1.04
$0.99
$4.32
$4.03
The Company's 4Q19 and full-year 2019 results include a $0.12 per diluted share charge related to the early redemption and prepayment of debt.

 
Quarterly Growth
Sequential Growth
Year-To-Date Growth
Same Property Results
4Q19 vs. 4Q18
4Q19 vs. 3Q19
2019 vs. 2018
Revenues
4.1%
0.3%
3.7%
Expenses
0.3%
(4.4)%
2.0%
Net Operating Income ("NOI")
6.2%
2.9%
4.7%

Same Property Results
4Q19

4Q18

3Q19

Occupancy
96.2
%
95.8
%
96.3
%

“We are pleased to report another strong quarter of performance, with same property growth and FFO per share slightly better than anticipated for both fourth quarter and full-year 2019,” said Richard J. Campo, Camden’s Chairman and CEO. “During 2019 we continued to improve the quality of our portfolio and strengthen our balance sheet through strategic capital recycling and the successful execution of several capital markets transactions. We expect demand for apartment homes to remain steady in 2020 with levels of new supply increasing slightly, resulting in moderating same property revenue growth over the course of the year.”

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
During the quarter, lease-up was completed at Camden McGowen Station in Houston, TX and construction commenced at Camden Atlantic in Plantation, FL.

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

% Leased

Community Name
Location
Homes
Cost

as of 1/29/2020

Camden North End I
Phoenix, AZ
441
$98.8
75
%
Camden Grandview II
Charlotte, NC
28
22.5

93
%
Total
 
469
$121.3

76
%

1


Development Communities - Construction Ongoing ($ in millions)
 
 
Total
Total
Community Name
Location
Homes
Budget
Camden Downtown I
Houston, TX
271
$132.0
Camden RiNo
Denver, CO
233
75.0
Camden Lake Eola
Orlando, FL
360
120.0
Camden Buckhead
Atlanta, GA
366
160.0
Camden North End II
Phoenix, AZ
343
90.0
Camden Hillcrest
San Diego, CA
132
95.0
Camden Atlantic
Plantation, FL
269
100.0
Camden Cypress Creek II (JV)
Cypress, TX
234
38.0
Total
 
2,208
$810.0

Acquisition/Disposition Activity
During the quarter, the Company acquired Camden Carolinian, a 186-home apartment community located in Raleigh, NC for approximately $75.1 million, and acquired Camden Highland Village, a 552-home apartment community with an adjacent 2.25-acre development site located in Houston, TX for approximately $155.2 million.

The Company also completed the sale of its Corpus Christi, TX portfolio and exit of that market during the quarter. The assets sold included two wholly-owned communities with 632 apartment homes, and one joint venture community with 270 apartment homes. Net proceeds to the Company were approximately $75.0 million.

Subsequent to quarter-end, Camden acquired 4.9 acres of land in Raleigh, NC for $18.2 million for the future development of approximately 355 apartment homes.

Capital Markets Transactions
In October 2019, the Company issued $300.0 million of senior unsecured notes under its existing shelf registration statement. These 30-year notes were offered to the public at 99.941% of par value with a coupon of 3.350%. Camden received net proceeds of approximately $296.6 million, net of underwriting discounts and other estimated offering expenses.

In late October 2019, Camden redeemed all of its 4.78% $250 million senior unsecured notes due 2021 and prepaid its 4.38% $45.3 million secured mortgage notes due 2045. In connection with these transactions, Camden recorded an approximate $12 million charge in the fourth quarter of 2019.

Equity Issuance
During the fourth quarter, Camden issued 224,256 common shares through its at-the-market (“ATM”) share offering program at an average price of $111.88 per share, for total net consideration of approximately $24.8 million.

Earnings Guidance
Camden provided initial earnings guidance for 2020 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for first quarter 2020 as detailed below.

 
1Q20
2020
Per Diluted Share
Range
Range
Midpoint
EPS
$0.39 - $0.43
$1.64 - $1.84
$1.74
FFO
$1.29 - $1.33
$5.30 - $5.50
$5.40
 
2020
Same Property Growth
Range
Midpoint
Revenues
2.70% - 3.70%
3.20%
Expenses
2.50% - 3.50%
3.00%
NOI
2.30% - 4.30%
3.30%

2


For 2020, the Company defines same property communities as communities owned and stabilized since January 1, 2019, excluding communities under redevelopment and properties held for sale. The Company defines properties under redevelopment as communities with capital expenditures that improve a community's cash flow and competitive position, through extensive unit, exterior building, common area, and amenity upgrades. Camden intends to update its earnings guidance to the market on a quarterly basis. Additional information on the Company’s 2020 financial outlook and a reconciliation of expected EPS to expected FFO are included in the financial tables accompanying this press release.

Quarterly Dividend Declaration
Camden's Board of Trust Managers declared a first quarter 2020 dividend of $0.83 per common share, which is a 3.75% increase over the Company's prior quarterly dividend of $0.80 per share. The dividend is payable on April 17, 2020 to shareholders of record as of March 31, 2020. 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 press release.

Conference Call
Friday, January 31, 2020 at 10:00 AM CT
Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061
Passcode: 0557569
Webcast: https://services.choruscall.com/links/cpt200131.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 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 164 properties containing 56,107 apartment homes across the United States. Upon completion of 8 properties currently under development, the Company’s portfolio will increase to 58,315 apartment homes in 172 properties. Camden has been recognized as one of the 100 Best Companies to Work For® by FORTUNE magazine for 12 consecutive years, most recently ranking #19. The Company also received a Glassdoor Employeesʼ Choice Award in 2020, ranking #25 for large U.S. companies.

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 December 31,
 
Twelve Months Ended December 31,
 
2019
2018
 
2019
2018
OPERATING DATA
 
 
 
 
 
 
 
 
 
 
 
Property revenues (a)
$263,461
$244,919
 
$1,028,461
$954,505
 
 
 
 
 
 
Property expenses
 
 
 
 
 
Property operating and maintenance
58,217

55,108

 
235,589

220,732

Real estate taxes
32,192

31,612

 
130,758

122,847

Total property expenses
90,409

86,720

 
366,347

343,579

 
 
 
 
 
 
Non-property income
 
 
 
 
 
Fee and asset management
2,847

1,580

 
8,696

7,231

Interest and other income
976

432

 
3,090

2,101

Income/(Loss) on deferred compensation plans
6,702

(10,304
)
 
21,694

(6,535
)
Total non-property income
10,525

(8,292
)
 
33,480

2,797

 
 
 
 
 
 
Other expenses
 
 
 
 
 
Property management
6,386

6,166

 
25,290

25,581

Fee and asset management
1,737

1,258

 
5,759

4,451

General and administrative
13,174

13,622

 
53,201

50,735

Interest
20,168

22,047

 
80,706

84,263

Depreciation and amortization
85,540

78,677

 
336,274

300,946

Expense/(Benefit) on deferred compensation plans
6,702

(10,304
)
 
21,694

(6,535
)
Total other expenses
133,707

111,466

 
522,924

459,441

 
 
 
 
 
 
Loss on early retirement of debt
(11,995
)

 
(11,995
)

Gain on sale of operating properties, net of tax
49,901


 
49,901


Equity in income of joint ventures
8,829

2,192

 
14,783

7,836

Income from continuing operations before income taxes
96,605

40,633

 
225,359

162,118

Income tax expense
(380
)
(326
)
 
(1,089
)
(1,424
)
Net income
96,225

40,307

 
224,270

160,694

Less income allocated to non-controlling interests
(1,211
)
(1,111
)
 
(4,647
)
(4,566
)
Net income attributable to common shareholders

$95,014


$39,196

 

$219,623


$156,128

 
 
 
 
 
 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 
 
 
 
 
Net income
$96,225
$40,307
 
$224,270
$160,694
Other comprehensive income
 
 
 
 
 
Unrealized gain (loss) on cash flow hedging activities

(7,202
)
 
(12,998
)
6,782

Unrealized gain (loss) and unamortized prior service cost on post retirement obligation
(449
)
450

 
(449
)
450

Reclassification of net (gain) loss on cash flow hedging activities, prior service cost and net loss on post retirement obligation
358

(350
)
 
(11
)
(246
)
Comprehensive income
96,134

33,205

 
210,812

167,680

Less income allocated to non-controlling interests
(1,211
)
(1,111
)
 
(4,647
)
(4,566
)
Comprehensive income attributable to common shareholders

$94,923


$32,094

 

$206,165


$163,114

 
 
 
 
 
 
PER SHARE DATA
 
 
 
 
 
 
 
 
 
 
 
Total earnings per common share - basic

$0.96


$0.41

 

$2.23


$1.63

Total earnings per common share - diluted
0.95

0.41

 
2.22

1.63

 
 
 
 
 
 
Weighted average number of common shares outstanding:
 
 
 
 
 
     Basic
99,055

95,262

 
98,460

95,208

     Diluted
100,932

95,465

 
99,384

95,366


(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 December 31, 2019, we recognized $263.5 million of property revenue which consisted of approximately $234.1 million of rental revenue and approximately $29.4 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 $244.9 million recognized for the three months ended December 31, 2018, made up of approximately $216.9 million of rental revenue and approximately $28.0 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. For the twelve months ended December 31, 2019, we recognized $1,028.5 million of property revenue which consisted of approximately $911.1 million of rental revenue and approximately $117.4 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 $954.5 million recognized for the twelve months ended December 31, 2018, made up of approximately $842.0 million of rental revenue and approximately $112.5 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 December 31,
 
Twelve Months Ended December 31,
 
2019
2018
 
2019
2018
FUNDS FROM OPERATIONS
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to common shareholders

$95,014


$39,196

 

$219,623


$156,128

 Real estate depreciation and amortization
83,137

76,867

 
328,045

294,283

 Adjustments for unconsolidated joint ventures
2,251

2,233

 
8,987

8,976

 Gain on sale of operating properties, net of tax
(49,901
)

 
(49,901
)

 Gain on sale of unconsolidated joint venture property
(6,204
)

 
(6,204
)

 Income allocated to non-controlling interests
1,289

1,140

 
4,838

4,595

     Funds from operations

$125,586


$119,436

 

$505,388


$463,982

 
 
 
 
 
 
     Less: recurring capitalized expenditures (a)
(21,109
)
(23,258
)
 
(72,172
)
(72,296
)
 
 
 
 
 
 
     Adjusted funds from operations

$104,477


$96,178

 

$433,216


$391,686

 
 
 
 
 
 
PER SHARE DATA
 
 
 
 
 
Funds from operations - diluted

$1.24


$1.23

 

$5.04


$4.77

Adjusted funds from operations - diluted
1.04

0.99

 
4.32

4.03

Distributions declared per common share
0.80

0.77

 
3.20

3.08

 
 
 
 
 
 
Weighted average number of common shares outstanding:
 
 
 
 
 
FFO/AFFO - diluted
100,932

97,221

 
100,332

97,201

 
 
 
 
 
 
PROPERTY DATA
 
 
 
 
 
Total operating properties (end of period) (b)
164

161

 
164

161

Total operating apartment homes in operating properties (end of period) (b)
56,107

55,160

 
56,107

55,160

Total operating apartment homes (weighted average)
48,875

47,653

 
48,549

46,925


(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)
 
Dec 31,
2019

Sep 30,
2019

Jun 30,
2019

Mar 31,
2019

Dec 31,
2018

ASSETS
 
 
 
 
 
Real estate assets, at cost
 
 
 
 
 
Land

$1,199,384


$1,158,342


$1,158,342


$1,127,485


$1,098,526

Buildings and improvements
7,404,090

7,242,256

7,192,644

7,057,101

6,935,971

 
8,603,474

8,400,598

8,350,986

8,184,586

8,034,497

Accumulated depreciation
(2,686,025
)
(2,638,693
)
(2,558,690
)
(2,479,875
)
(2,403,149
)
Net operating real estate assets
5,917,449

5,761,905

5,792,296

5,704,711

5,631,348

Properties under development, including land
512,319

440,917

397,418

307,981

293,978

Investments in joint ventures
20,688

21,715

21,313

21,955

22,283

Total real estate assets
6,450,456

6,224,537

6,211,027

6,034,647

5,947,609

Accounts receivable – affiliates
21,833

23,170

22,297

21,337

22,920

Other assets, net (a)
248,716

238,014

233,335

217,663

205,454

Cash and cash equivalents
23,184

157,239

149,551

6,092

34,378

Restricted cash
4,315

5,686

5,392

5,655

9,225

Total assets

$6,748,504


$6,648,646


$6,621,602


$6,285,394


$6,219,586

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
Liabilities
 
 
 
 
 
Notes payable
 
 
 
 
 
Unsecured

$2,524,099


$2,432,137


$2,431,336


$2,079,136


$1,836,427

Secured

45,250

45,467

45,683

485,176

Accounts payable and accrued expenses
171,719

170,689

128,371

126,964

146,866

Accrued real estate taxes
54,408

74,658

59,525

30,891

54,358

Distributions payable
80,973

80,764

80,767

80,771

74,982

Other liabilities (b)(c)
215,581

187,367

187,368

195,629

183,999

Total liabilities
3,046,780

2,990,865

2,932,834

2,559,074

2,781,808

 
 
 
 
 
 
Non-qualified deferred compensation share awards




52,674

 
 
 
 
 
 
Equity
 
 
 
 
 
Common shares of beneficial interest
1,069

1,065

1,065

1,064

1,031

Additional paid-in capital
4,566,731

4,538,422

4,533,667

4,527,659

4,154,763

Distributions in excess of net income attributable to common shareholders
(584,167
)
(599,615
)
(563,834
)
(526,856
)
(495,496
)
Treasury shares, at cost
(348,419
)
(348,556
)
(348,480
)
(349,655
)
(355,804
)
Accumulated other comprehensive income (loss) (d)
(6,529
)
(6,438
)
(6,795
)
616

6,929

Total common equity
3,628,685

3,584,878

3,615,623

3,652,828

3,311,423

Non-controlling interests
73,039

72,903

73,145

73,492

73,681

Total equity
3,701,724

3,657,781

3,688,768

3,726,320

3,385,104

Total liabilities and equity

$6,748,504


$6,648,646


$6,621,602


$6,285,394


$6,219,586

 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 

 
 
 
 
 
 
(a) Includes net deferred charges of:

$3,658


$4,358


$4,345


$5,081


$242

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

$—


$—


$—


($13,370
)

($7,433
)
 
 
 
 
 
 
(c) Includes deferred revenues of:

$408


$497


$581


$659


$552

 
 
 
 
 
 
(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 December 31,
 
Twelve Months Ended December 31,
 
2019
2018
 
2019
2018
Net income attributable to common shareholders

$95,014


$39,196

 

$219,623


$156,128

 Real estate depreciation and amortization
83,137

76,867

 
328,045

294,283

 Adjustments for unconsolidated joint ventures
2,251

2,233

 
8,987

8,976

 Income allocated to non-controlling interests
1,289

1,140

 
4,838

4,595

 Gain on sale of operating properties, net of tax
(49,901
)

 
(49,901
)

Gain on sale of unconsolidated joint venture property, net of tax
(6,204
)

 
(6,204
)

Funds from operations

$125,586


$119,436

 

$505,388


$463,982

 
 
 
 
 
 
Less: recurring capitalized expenditures
(21,109
)
(23,258
)
 
(72,172
)
(72,296
)
 
 
 
 
 
 
Adjusted funds from operations

$104,477


$96,178

 

$433,216


$391,686

 
 
 
 
 
 
Weighted average number of common shares outstanding:
 
 
 
 
 
EPS diluted
100,932

95,465

 
99,384

95,366

FFO/AFFO diluted
100,932

97,221

 
100,332

97,201

 
 
 
 
 
 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
2019
2018
 
2019
2018
Total Earnings Per Common Share - Diluted

$0.95


$0.41

 

$2.22


$1.63

 Real estate depreciation and amortization
0.82

0.79

 
3.27

3.03

 Adjustments for unconsolidated joint ventures
0.02

0.02

 
0.08

0.09

 Income allocated to non-controlling interests

0.01

 
0.03

0.02

 Gain on sale of operating properties, net of tax
(0.49
)

 
(0.50
)

Gain on sale of unconsolidated joint venture property, net of tax
(0.06
)

 
(0.06
)

FFO per common share - Diluted

$1.24


$1.23

 

$5.04


$4.77

 
 
 
 
 
 
Less: recurring capitalized expenditures
(0.20
)
(0.24
)
 
(0.72
)
(0.74
)
 
 
 
 
 
 
AFFO per common share - Diluted

$1.04


$0.99

 

$4.32


$4.03

 




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:
 
1Q20

Range
 
2020

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

$0.39


$0.43

 

$1.64


$1.84

Expected real estate depreciation and amortization
0.87

0.87

 
3.52

3.52

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

 
0.05

0.05

Expected FFO per share - diluted

$1.29


$1.33

 

$5.30


$5.50


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 supplemental. 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 December 31,
 
Twelve months ended December 31,
 
2019
2018
 
2019
2018
Net income

$96,225


$40,307

 

$224,270


$160,694

Less: Fee and asset management income
(2,847
)
(1,580
)
 
(8,696
)
(7,231
)
Less: Interest and other income
(976
)
(432
)
 
(3,090
)
(2,101
)
Less: (Income)/Loss on deferred compensation plans
(6,702
)
10,304

 
(21,694
)
6,535

Plus: Property management expense
6,386

6,166

 
25,290

25,581

Plus: Fee and asset management expense
1,737

1,258

 
5,759

4,451

Plus: General and administrative expense
13,174

13,622

 
53,201

50,735

Plus: Interest expense
20,168

22,047

 
80,706

84,263

Plus: Depreciation and amortization expense
85,540

78,677

 
336,274

300,946

Plus: Expense/(Benefit) on deferred compensation plans
6,702

(10,304
)
 
21,694

(6,535
)
Plus: Loss on early retirement of debt
11,995


 
11,995


Less: Gain on sale of operating properties, net of tax
(49,901
)

 
(49,901
)

Less: Equity in income of joint ventures
(8,829
)
(2,192
)
 
(14,783
)
(7,836
)
Plus: Income tax expense
380

326

 
1,089

1,424

NOI

$173,052


$158,199

 

$662,114


$610,926

 
 
 
 
 
 
"Same Property" Communities

$142,692


$134,372

 

$552,419


$527,780

Non-"Same Property" Communities
25,896

20,560

 
94,437

71,437

Development and Lease-Up Communities
1,403

708

 
4,251

1,260

Dispositions/Other
3,061

2,559

 
11,007

10,449

NOI

$173,052


$158,199

 

$662,114


$610,926









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. A reconciliation of net income attributable to common shareholders to Adjusted EBITDA is provided below:
 
Three months ended December 31,
 
Twelve months ended December 31,
 
2019
2018
 
2019
2018
Net income attributable to common shareholders

$95,014


$39,196

 

$219,623


$156,128

Plus: Interest expense
20,168

22,047

 
80,706

84,263

Plus: Depreciation and amortization expense
85,540

78,677

 
336,274

300,946

Plus: Income allocated to non-controlling interests
1,211

1,111

 
4,647

4,566

Plus: Income tax expense
380

326

 
1,089

1,424

Less: Gain on sale of operating properties, net of tax
(49,901
)

 
(49,901
)

Plus: Loss on early retirement of debt
11,995


 
11,995


Less: Equity in income of joint ventures
(8,829
)
(2,192
)
 
(14,783
)
(7,836
)
Adjusted EBITDA

$155,578


$139,165

 

$589,650


$539,491

Annualized Adjusted EBITDA

$622,312


$556,660

 

$589,650


$539,491


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 December 31,
 
the twelve months ended December 31,
 
 
 
2019
2018
 
2019
2018
Unsecured notes payable
 
 

$2,494,525


$1,836,195

 

$2,332,764


$1,468,164

Secured notes payable
 
 

485,261

 
90,699

770,578

Total debt
 
 
2,494,525

2,321,456

 
2,423,463

2,238,742

Less: Cash and cash equivalents
 
 
49,696

29,489

 
100,815

47,485

Net debt
 
 

$2,444,829


$2,291,967

 

$2,322,648


$2,191,257


Net Debt to Annualized Adjusted EBITDA:

 
 
 
Three months ended December 31,
 
Twelve months ended December 31,
 
 
 
2019
2018
 
2019
2018
Net debt
 
 

$2,444,829


$2,291,967

 

$2,322,648


$2,191,257

Annualized Adjusted EBITDA
 
 
622,312

556,660

 
589,650

539,491

Net Debt to Annualized Adjusted EBITDA
 
 
3.9x

4.1x

 
3.9x

4.1x





9



 
CAMDEN
 
2020 FINANCIAL OUTLOOK
 
 
AS OF JANUARY 30, 2020
 
 
 
 
 
 

(Unaudited)
Earnings Guidance - Per Diluted Share
 
 
 Expected FFO per share - diluted
 
$5.30 - $5.50
 
 
 
"Same Property" Communities
 
 
Number of Units
 
43,710
2019 Base Net Operating Income
 
$584 million
Total Revenue Growth
 
2.70% - 3.70%
Total Expense Growth
 
2.50% - 3.50%
Net Operating Income Growth
 
2.30% - 4.30%
Impact from 1% change in NOI Growth is approximately $0.058 / share
 
 
 
 
 
Capitalized Expenditures
 
 
Recurring
 
$72 - $76 million
Revenue Enhancing Capex and Repositions (a)
 
$52 - $56 million
Redevelopments (b)
 
$16 - $20 million
 
 
 
Acquisitions/Dispositions
 
 
Acquisition Volume (consolidated on balance sheet)
 
$200 - $400 million
Disposition Volume (consolidated on balance sheet)
 
$100 - $300 million
 
 
 
Development
 
 
Development Starts (consolidated on balance sheet)
 
$100 - $300 million
Development Spend (consolidated on balance sheet)
 
$285 - $315 million
 
 
 
Equity in Income of Joint Ventures (FFO)
 
$17 - $19 million
 
 
 
Non-Property Income
 
 
Non-Property Income
 
$10 - $12 million
Includes: Fee and asset management income and Interest and other income
 
 
 
 
 
 
 
 
Corporate Expenses
 
 
General and Administrative Expense
 
$52 - $56 million
Property Management Expense
 
$24 - $26 million
Fee and Asset Management Expense
 
$3 - $5 million
Corporate G&A Depreciation/Amortization
 
$9 - $11 million
 
 
 
Capital
 
 
Expected Debt Capital Transactions
 
$200 - $400 million
Expensed Interest
 
$85 - $89 million
Capitalized Interest
 
$16 - $18 million

(a) Revenue Enhancing Capex and Repositions are capital expenditures that improve a community's cash flow and competitive position, typically kitchen and bath upgrades or other new amenities.

(b) Redevelopments are capital expenditures that improve a community's cash flow and competitive position, through extensive unit, exterior building, common area, and amenity upgrades.


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.


10
(Back To Top)

Section 3: EX-99.2 (EXHIBIT 99.2)

Exhibit


402539358_picture1a85.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" Fourth 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
2020 Financial Outlook
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



402539358_image1a01a02a39.jpg

CAMDEN PROPERTY TRUST ANNOUNCES 2019 OPERATING RESULTS,
2020 FINANCIAL OUTLOOK, AND FIRST QUARTER 2020 DIVIDEND

Houston, Texas (January 30, 2020) - Camden Property Trust (NYSE:CPT) (the "Company") announced today operating results for the three and twelve months ended December 31, 2019. Net Income Attributable to Common Shareholders (“EPS”), Funds from Operations (“FFO”), and Adjusted Funds from Operations (“AFFO”) for the three and twelve months ended December 31, 2019 are detailed below. A reconciliation of EPS to FFO is included in the financial tables accompanying this press release.

 
Three Months Ended
Twelve Months Ended
 
December 31
December 31
Per Diluted Share
2019
2018
2019
2018
EPS
$0.95
$0.41
$2.22
$1.63
FFO
$1.24
$1.23
$5.04
$4.77
AFFO
$1.04
$0.99
$4.32
$4.03
The Company's 4Q19 and full-year 2019 results include a $0.12 per diluted share charge related to the early redemption and prepayment of debt.

 
Quarterly Growth
Sequential Growth
Year-To-Date Growth
Same Property Results
4Q19 vs. 4Q18
4Q19 vs. 3Q19
2019 vs. 2018
Revenues
4.1%
0.3%
3.7%
Expenses
0.3%
(4.4)%
2.0%
Net Operating Income ("NOI")
6.2%
2.9%
4.7%

Same Property Results
4Q19

4Q18

3Q19

Occupancy
96.2
%
95.8
%
96.3
%

“We are pleased to report another strong quarter of performance, with same property growth and FFO per share slightly better than anticipated for both fourth quarter and full-year 2019,” said Richard J. Campo, Camden’s Chairman and CEO. “During 2019 we continued to improve the quality of our portfolio and strengthen our balance sheet through strategic capital recycling and the successful execution of several capital markets transactions. We expect demand for apartment homes to remain steady in 2020 with levels of new supply increasing slightly, resulting in moderating same property revenue growth over the course of the year.”

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
During the quarter, lease-up was completed at Camden McGowen Station in Houston, TX and construction commenced at Camden Atlantic in Plantation, FL.

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

% Leased

Community Name
Location
Homes
Cost

as of 1/29/2020

Camden North End I
Phoenix, AZ
441
$98.8
75
%
Camden Grandview II
Charlotte, NC
28
22.5

93
%
Total
 
469
$121.3

76
%

3



Development Communities - Construction Ongoing ($ in millions)
 
 
Total
Total
Community Name
Location
Homes
Budget
Camden Downtown I
Houston, TX
271
$132.0
Camden RiNo
Denver, CO
233
75.0
Camden Lake Eola
Orlando, FL
360
120.0
Camden Buckhead
Atlanta, GA
366
160.0
Camden North End II
Phoenix, AZ
343
90.0
Camden Hillcrest
San Diego, CA
132
95.0
Camden Atlantic
Plantation, FL
269
100.0
Camden Cypress Creek II (JV)
Cypress, TX
234
38.0
Total
 
2,208
$810.0

Acquisition/Disposition Activity
During the quarter, the Company acquired Camden Carolinian, a 186-home apartment community located in Raleigh, NC for approximately $75.1 million, and acquired Camden Highland Village, a 552-home apartment community with an adjacent 2.25-acre development site located in Houston, TX for approximately $155.2 million.

The Company also completed the sale of its Corpus Christi, TX portfolio and exit of that market during the quarter. The assets sold included two wholly-owned communities with 632 apartment homes, and one joint venture community with 270 apartment homes. Net proceeds to the Company were approximately $75.0 million.

Subsequent to quarter-end, Camden acquired 4.9 acres of land in Raleigh, NC for $18.2 million for the future development of approximately 355 apartment homes.

Capital Markets Transactions
In October 2019, the Company issued $300.0 million of senior unsecured notes under its existing shelf registration statement. These 30-year notes were offered to the public at 99.941% of par value with a coupon of 3.350%. Camden received net proceeds of approximately $296.6 million, net of underwriting discounts and other estimated offering expenses.

In late October 2019, Camden redeemed all of its 4.78% $250 million senior unsecured notes due 2021 and prepaid its 4.38% $45.3 million secured mortgage notes due 2045. In connection with these transactions, Camden recorded an approximate $12 million charge in the fourth quarter of 2019.

Equity Issuance
During the fourth quarter, Camden issued 224,256 common shares through its at-the-market (“ATM”) share offering program at an average price of $111.88 per share, for total net consideration of approximately $24.8 million.

Earnings Guidance
Camden provided initial earnings guidance for 2020 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for first quarter 2020 as detailed below.

 
1Q20
2020
Per Diluted Share
Range
Range
Midpoint
EPS
$0.39 - $0.43
$1.64 - $1.84
$1.74
FFO
$1.29 - $1.33
$5.30 - $5.50
$5.40
 
2020
Same Property Growth
Range
Midpoint
Revenues
2.70% - 3.70%
3.20%
Expenses
2.50% - 3.50%
3.00%
NOI
2.30% - 4.30%
3.30%

4



For 2020, the Company defines same property communities as communities owned and stabilized since January 1, 2019, excluding communities under redevelopment and properties held for sale. The Company defines properties under redevelopment as communities with capital expenditures that improve a community's cash flow and competitive position, through extensive unit, exterior building, common area, and amenity upgrades. Camden intends to update its earnings guidance to the market on a quarterly basis. Additional information on the Company’s 2020 financial outlook and a reconciliation of expected EPS to expected FFO are included in the financial tables accompanying this press release.

Quarterly Dividend Declaration
Camden's Board of Trust Managers declared a first quarter 2020 dividend of $0.83 per common share, which is a 3.75% increase over the Company's prior quarterly dividend of $0.80 per share. The dividend is payable on April 17, 2020 to shareholders of record as of March 31, 2020. 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 press release.

Conference Call
Friday, January 31, 2020 at 10:00 AM CT
Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061
Passcode: 0557569
Webcast: https://services.choruscall.com/links/cpt200131.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 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 164 properties containing 56,107 apartment homes across the United States. Upon completion of 8 properties currently under development, the Company’s portfolio will increase to 58,315 apartment homes in 172 properties. Camden has been recognized as one of the 100 Best Companies to Work For® by FORTUNE magazine for 12 consecutive years, most recently ranking #19. The Company also received a Glassdoor Employeesʼ Choice Award in 2020, ranking #25 for large U.S. companies.

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 December 31,
 
Twelve Months Ended December 31,
 
2019
2018
 
2019
2018
Property revenues

$263,461


$244,919

 

$1,028,461


$954,505

 
 
 
 
 
 
Adjusted EBITDA
155,578

139,165

 
589,650

539,491

 
 
 
 
 
 
Net income attributable to common shareholders
95,014

39,196

 
219,623

156,128

      Per share - basic
0.96

0.41

 
2.23

1.63

      Per share - diluted
0.95

0.41

 
2.22

1.63

 
 
 
 
 
 
Funds from operations
125,586

119,436

 
505,388

463,982

       Per share - diluted
1.24

1.23

 
5.04

4.77

 
 
 
 
 
 
Adjusted funds from operations
104,477

96,178

 
433,216

391,686

       Per share - diluted
1.04

0.99

 
4.32

4.03

 
 
 
 
 
 
Dividends per share
0.80

0.77

 
3.20

3.08

Dividend payout ratio (FFO)
64.5
%
62.6
%
 
63.5
%
64.6
%
 
 
 
 
 
 
Interest expensed
20,168

22,047

 
80,706

84,263

Interest capitalized
4,204

2,874

 
14,131

13,632

    Total interest incurred
24,372

24,921

 
94,837

97,895

 
 
 
 
 
 
Principal amortization

256

 
699

795

 
 
 
 
 
 
Net Debt to Annualized Adjusted EBITDA (a)
3.9x

4.1x

 
3.9x

4.1x

Interest expense coverage ratio
7.7x

6.3x

 
7.3x

6.4x

Total interest coverage ratio
6.4x

5.6x

 
6.2x

5.5x

Fixed charge expense coverage ratio
7.7x

6.2x

 
7.2x

6.3x

Total fixed charge coverage ratio
6.4x

5.5x

 
6.2x

5.5x

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

4.1x

 
3.6x

4.1x

 
 

 
 
 
Same property NOI increase (b)
6.2
%
2.6
%
 
4.7
%
3.4
%
  (# of apartment homes included)
41,986

41,968

 
41,986

41,968

 
 
 
 
 
 
Gross turnover of apartment homes (annualized)
44
%
45
%
 
52
%
55
%
Net turnover (excludes on-site transfers and transfers to other Camden communities)
35
%
36
%
 
43
%
44
%
 
 
 
 
 
 
 
 
 
As of December 31,
 


 
2019
2018
Total assets
 
 
 

$6,748,504


$6,219,586

Total debt
 
 
 

$2,524,099


$2,321,603

Common and common equivalent shares, outstanding end of period (c)
 
 
 
101,091

97,247

Share price, end of period
 
 
 

$106.10


$88.05

Book equity value, end of period (d)
 
 
 

$3,701,724


$3,437,778

Market equity value, end of period (e)
 
 
 

$10,725,755


$8,562,598

 
(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 4 for quarter 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 December 31, 2019: 99,343 common shares (including 131 common share equivalents related to share awards), plus 1,748 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 28, 29 and 30 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 December 31,
 
Twelve Months Ended December 31,
 
2019
2018
 
2019
2018
OPERATING DATA
 
 
 
 
 
 
 
 
 
 
 
Property revenues (a)
$263,461
$244,919
 
$1,028,461
$954,505
 
 
 
 
 
 
Property expenses
 
 
 
 
 
Property operating and maintenance
58,217

55,108

 
235,589

220,732

Real estate taxes
32,192

31,612

 
130,758

122,847

Total property expenses
90,409

86,720

 
366,347

343,579

 
 
 
 
 
 
Non-property income
 
 
 
 
 
Fee and asset management
2,847

1,580

 
8,696

7,231

Interest and other income
976

432

 
3,090

2,101

Income/(Loss) on deferred compensation plans
6,702

(10,304
)
 
21,694

(6,535
)
Total non-property income
10,525

(8,292
)
 
33,480

2,797

 
 
 
 
 
 
Other expenses
 
 
 
 
 
Property management
6,386

6,166

 
25,290

25,581

Fee and asset management
1,737

1,258

 
5,759

4,451

General and administrative
13,174

13,622

 
53,201

50,735

Interest
20,168

22,047

 
80,706

84,263

Depreciation and amortization
85,540

78,677

 
336,274

300,946

Expense/(Benefit) on deferred compensation plans
6,702

(10,304
)
 
21,694

(6,535
)
Total other expenses
133,707

111,466

 
522,924

459,441

 
 
 
 
 
 
Loss on early retirement of debt
(11,995
)

 
(11,995
)

Gain on sale of operating properties, net of tax
49,901


 
49,901


Equity in income of joint ventures
8,829

2,192

 
14,783

7,836

Income from continuing operations before income taxes
96,605

40,633

 
225,359

162,118

Income tax expense
(380
)
(326
)
 
(1,089
)
(1,424
)
Net income
96,225

40,307

 
224,270

160,694

Less income allocated to non-controlling interests
(1,211
)
(1,111
)
 
(4,647
)
(4,566
)
Net income attributable to common shareholders

$95,014


$39,196

 

$219,623


$156,128

 
 
 
 
 
 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 
 
 
 
 
Net income
$96,225
$40,307
 
$224,270
$160,694
Other comprehensive income
 
 
 
 
 
Unrealized gain (loss) on cash flow hedging activities

(7,202
)
 
(12,998
)
6,782

Unrealized gain (loss) and unamortized prior service cost on post retirement obligation
(449
)
450

 
(449
)
450

Reclassification of net (gain) loss on cash flow hedging activities, prior service cost and net loss on post retirement obligation
358

(350
)
 
(11
)
(246
)
Comprehensive income
96,134

33,205

 
210,812

167,680

Less income allocated to non-controlling interests
(1,211
)
(1,111
)
 
(4,647
)
(4,566
)
Comprehensive income attributable to common shareholders

$94,923


$32,094

 

$206,165


$163,114

 
 
 
 
 
 
PER SHARE DATA
 
 
 
 
 
 
 
 
 
 
 
Total earnings per common share - basic

$0.96


$0.41

 

$2.23


$1.63

Total earnings per common share - diluted
0.95

0.41

 
2.22

1.63

 
 
 
 
 
 
Weighted average number of common shares outstanding:
 
 
 
 
 
     Basic
99,055

95,262

 
98,460

95,208

     Diluted
100,932

95,465

 
99,384

95,366


(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 December 31, 2019, we recognized $263.5 million of property revenue which consisted of approximately $234.1 million of rental revenue and approximately $29.4 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 $244.9 million recognized for the three months ended December 31, 2018, made up of approximately $216.9 million of rental revenue and approximately $28.0 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. For the twelve months ended December 31, 2019, we recognized $1,028.5 million of property revenue which consisted of approximately $911.1 million of rental revenue and approximately $117.4 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 $954.5 million recognized for the twelve months ended December 31, 2018, made up of approximately $842.0 million of rental revenue and approximately $112.5 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 28, 29 and 30 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 December 31,
 
Twelve Months Ended December 31,
 
2019
2018
 
2019
2018
FUNDS FROM OPERATIONS
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to common shareholders

$95,014


$39,196

 

$219,623


$156,128

 Real estate depreciation and amortization
83,137

76,867

 
328,045

294,283

 Adjustments for unconsolidated joint ventures
2,251

2,233

 
8,987

8,976

 Gain on sale of operating properties, net of tax
(49,901
)

 
(49,901
)

 Gain on sale of unconsolidated joint venture property
(6,204
)

 
(6,204
)

 Income allocated to non-controlling interests
1,289

1,140

 
4,838

4,595

     Funds from operations

$125,586


$119,436

 

$505,388


$463,982

 
 
 
 
 
 
     Less: recurring capitalized expenditures (a)
(21,109
)
(23,258
)
 
(72,172
)
(72,296
)
 
 
 
 
 
 
     Adjusted funds from operations

$104,477


$96,178

 

$433,216


$391,686

 
 
 
 
 
 
PER SHARE DATA
 
 
 
 
 
Funds from operations - diluted

$1.24


$1.23

 

$5.04


$4.77

Adjusted funds from operations - diluted
1.04

0.99

 
4.32

4.03

Distributions declared per common share
0.80

0.77

 
3.20

3.08

 
 
 
 
 
 
Weighted average number of common shares outstanding:
 
 
 
 
 
FFO/AFFO - diluted
100,932

97,221

 
100,332

97,201

 
 
 
 
 
 
PROPERTY DATA
 
 
 
 
 
Total operating properties (end of period) (b)
164

161

 
164

161

Total operating apartment homes in operating properties (end of period) (b)
56,107

55,160

 
56,107

55,160

Total operating apartment homes (weighted average)
48,875

47,653

 
48,549

46,925


(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 28, 29 and 30 for definitions and reconciliations of all non-GAAP financial measures presented in this document.

8


 
 
 
CAMDEN
 
BALANCE SHEETS
 
 
(In thousands)
 
 
 

(Unaudited)
 
Dec 31,
2019

Sep 30,
2019

Jun 30,
2019

Mar 31,
2019

Dec 31,
2018

ASSETS
 
 
 
 
 
Real estate assets, at cost
 
 
 
 
 
Land

$1,199,384


$1,158,342


$1,158,342


$1,127,485


$1,098,526

Buildings and improvements
7,404,090

7,242,256

7,192,644

7,057,101

6,935,971

 
8,603,474

8,400,598

8,350,986

8,184,586

8,034,497

Accumulated depreciation
(2,686,025
)
(2,638,693
)
(2,558,690
)
(2,479,875
)
(2,403,149
)
Net operating real estate assets
5,917,449

5,761,905

5,792,296

5,704,711

5,631,348

Properties under development, including land
512,319

440,917

397,418

307,981

293,978

Investments in joint ventures
20,688

21,715

21,313

21,955

22,283

Total real estate assets
6,450,456

6,224,537

6,211,027

6,034,647

5,947,609

Accounts receivable – affiliates
21,833

23,170

22,297

21,337

22,920

Other assets, net (a)
248,716

238,014

233,335

217,663

205,454

Cash and cash equivalents
23,184

157,239

149,551

6,092

34,378

Restricted cash
4,315

5,686

5,392

5,655

9,225

Total assets

$6,748,504


$6,648,646


$6,621,602


$6,285,394


$6,219,586

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
Liabilities
 
 
 
 
 
Notes payable
 
 
 
 
 
Unsecured

$2,524,099


$2,432,137


$2,431,336


$2,079,136


$1,836,427

Secured

45,250

45,467

45,683

485,176

Accounts payable and accrued expenses
171,719