Company Website:
http://www.camdenliving.com
HOUSTON -- (Business Wire)
Camden Property Trust (NYSE:CPT) announced today operating results for
the three and six months ended June 30, 2018. 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, 2018 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
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
EPS
| | | | |
$0.40
|
|
|
$0.43
| | |
$0.81
|
|
|
$0.82
|
FFO
| | | | |
$1.19
| | |
$1.15
| | |
$2.34
| | |
$2.24
|
AFFO
|
|
|
|
|
$1.00
|
|
|
$0.97
|
|
|
$2.04
|
|
|
$1.95
|
|
|
|
|
|
|
|
Quarterly Growth
|
|
|
Sequential Growth
|
|
|
Year-to-Date Growth
|
Same Property Results
|
|
|
|
|
2Q18 vs. 2Q17
|
|
|
2Q18 vs. 1Q18
|
|
|
2018 vs. 2017
|
Revenues
| | | | |
3.2%
| | |
1.8%
| | |
3.3%
|
Expenses
| | | | |
3.3%
| | |
0.7%
| | |
2.7%
|
Net Operating Income ("NOI")
|
|
|
|
|
3.2%
|
|
|
2.4%
|
|
|
3.6%
|
|
|
Same Property Results
|
|
|
|
|
2Q18
|
|
|
2Q17
|
|
|
1Q18
|
Occupancy
|
|
|
|
|
95.8%
|
|
|
95.3%
|
|
|
95.4%
|
|
“We are pleased to report another solid quarter of results for our
company,” said Richard J. Campo, Camden’s Chairman and CEO. “Same
property performance and FFO per share were better than anticipated, and
we have raised our full-year 2018 guidance for same property revenue
growth, same property NOI growth and FFO per share as a result. We are
also proud to announce that Camden recently celebrated its 25th
anniversary as a publicly traded company, and we thank all of our team
members, customers and shareholders for helping us reach this amazing
milestone.”
The Company defines same property communities as communities owned and
stabilized since January 1, 2017, excluding communities under
redevelopment and properties held for sale. A reconciliation of net
income to NOI and same property NOI is included in the financial tables
accompanying this press release.
Development Activity
During the quarter, leasing began at Camden McGowen Station in Houston,
TX, Camden North End I in Phoenix, AZ and Camden Washingtonian in
Gaithersburg, MD, and construction commenced at Camden Lake Eola in
Orlando, FL.
Development Communities - Construction Completed and Projects in
Lease-Up ($ in millions)
|
|
|
|
|
| |
|
|
Total
|
|
|
Total
|
|
|
% Leased
|
Community Name
|
|
|
|
|
Location
|
|
|
Units
|
|
|
Cost
|
|
|
as of 7/31/2018
|
Camden NoMa II
| | | | |
Washington, DC
| | |
405
| | |
$107.9
| | |
86%
|
Camden Shady Grove
|
|
|
|
|
Rockville, MD
|
|
|
457
|
|
|
113.7
|
|
|
80%
|
Total
|
|
|
|
|
|
|
|
862
|
|
|
$221.6
|
|
|
|
|
Development Communities - Construction Ongoing ($ in millions)
|
|
|
|
| |
|
|
Total
|
|
|
Total
|
|
|
% Leased
|
Community Name
|
|
|
Location
|
|
|
Units
|
|
|
Budget
|
|
|
as of 7/31/2018
|
Camden McGowen Station
| | |
Houston, TX
| | |
315
| | |
$90.0
| | |
30%
|
Camden North End I
| | |
Phoenix, AZ
| | |
441
| | |
105.0
| | |
27%
|
Camden Washingtonian
| | |
Gaithersburg, MD
| | |
365
| | |
90.0
| | |
32%
|
Camden Grandview II
| | |
Charlotte, NC
| | |
28
| | |
21.0
| | | |
Camden RiNo
| | |
Denver, CO
| | |
233
| | |
75.0
| | | |
Camden Downtown I
| | |
Houston, TX
| | |
271
| | |
132.0
| | | |
Camden Lake Eola
|
|
|
Orlando, FL
|
|
|
360
|
|
|
120.0
|
|
|
|
Total
|
|
|
|
|
|
2,013
|
|
|
$633.0
|
|
|
|
|
Acquisition/Disposition Activity
In April 2018, the Company acquired a 1.78-acre land parcel in Orlando,
FL, for $11.4 million for the future development of 360 wholly-owned
apartment homes which commenced construction during the quarter ended
June 30, 2018.
Earnings Guidance
Camden updated its earnings guidance for 2018 based on its current and
expected views of the apartment market and general economic conditions,
and provided guidance for third quarter 2018 as detailed below.
| |
|
|
|
|
|
3Q18
|
|
|
2018
|
|
|
2018 Midpoint
|
|
|
| |
Per Diluted Share
|
|
|
|
|
Range
|
|
|
Range
|
|
|
Current
|
|
|
Prior
|
|
|
Change
| |
EPS
| | | | |
$0.39 - $0.43
|
|
|
$1.55 - $1.67
|
|
|
$1.61
|
|
|
$1.78
|
|
|
($0.17)
| (a) |
FFO
|
|
|
|
|
$1.17 - $1.21
|
|
|
$4.68 - $4.80
|
|
|
$4.74
|
|
|
$4.72
|
|
|
$0.02
| |
(a) Guidance adjusted for depreciation and amortization of real
estate and in-place leases for 2018 completed and anticipated
acquisitions.
|
|
|
|
|
|
2018
|
|
|
2018 Midpoint
|
|
|
|
Same Property Growth
|
|
|
|
|
Range
|
|
|
Current
|
|
|
Prior
|
|
|
Change
|
Revenues
|
|
|
|
|
2.90% - 3.40%
|
|
|
3.15%
|
|
|
3.00%
|
|
|
0.15%
|
Expenses
| | | | |
3.25% - 3.75%
| | |
3.50%
| | |
3.50%
| | |
0.00%
|
NOI
|
|
|
|
|
2.50% - 3.50%
|
|
|
3.00%
|
|
|
2.70%
|
|
|
0.30%
|
|
Camden intends to update its earnings guidance to the market on a
quarterly basis. Additional information on the Company’s 2018 financial
outlook and a reconciliation of expected EPS to expected FFO are
included in the financial tables accompanying this press release.
Conference Call
Friday, August
3, 2018 at 10:00 AM CT
Domestic Dial-In Number: (888) 317-6003;
International Dial-In Number: (412) 317-6061
Passcode: 1269818
Webcast:
http://services.choruscall.com/links/cpt180803.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
engaged in the ownership, management, development, redevelopment,
acquisition, and construction of multifamily apartment communities.
Camden owns interests in and operates 158 properties containing 54,181
apartment homes across the United States. Upon completion of 7
properties currently under development, the Company’s portfolio will
increase to 56,194 apartment homes in 165 properties. Camden was
recently named by FORTUNE® Magazine for the eleventh consecutive year as
one of the “100 Best Companies to Work For” in America, ranking #24.
For additional information, please contact Camden’s Investor Relations
Department at (713) 354-2787 or access our website at camdenliving.com.
|
CAMDEN |
|
|
|
| OPERATING RESULTS |
| | | | | (In thousands, except per share amounts) |
|
|
|
|
|
|
(Unaudited) | | | | | |
| | | | |
|
| | | | | Three Months Ended June 30, |
|
|
| Six Months Ended June 30, |
| | | | | 2018 |
|
| 2017 | | | | 2018 |
|
| 2017 |
OPERATING DATA | | | | | |
|
| | | | | |
|
| |
Property revenues | | | | | | | | | | | | | | | |
Rental revenues (a) | | | | |
$208,634
| | | |
$190,470
| | | | |
$412,139
| | | |
$378,572
| |
Other property revenues (a) | | | | |
28,499
|
|
|
|
32,900
|
| | | |
55,677
|
|
|
|
64,319
|
|
Total property revenues
| | | | |
237,133
|
|
|
|
223,370
|
| | | |
467,816
|
|
|
|
442,891
|
|
| | | | | | | | | | | | | | |
|
Property expenses | | | | | | | | | | | | | | | |
Property operating and maintenance
| | | | |
54,735
| | | |
52,550
| | | | |
108,651
| | | |
104,098
| |
Real estate taxes
| | | | |
30,326
|
|
|
|
27,803
|
| | | |
60,375
|
|
|
|
55,723
|
|
Total property expenses
| | | | |
85,061
|
|
|
|
80,353
|
| | | |
169,026
|
|
|
|
159,821
|
|
| | | | | | | | | | | | | | |
|
Non-property income | | | | | | | | | | | | | | | |
Fee and asset management
| | | | |
1,826
| | | |
1,942
| | | | |
3,824
| | | |
3,690
| |
Interest and other income
| | | | |
491
| | | |
560
| | | | |
1,284
| | | |
1,194
| |
Income on deferred compensation plans
| | | | |
435
|
|
|
|
3,441
|
| | | |
230
|
|
|
|
8,058
|
|
Total non-property income
| | | | |
2,752
|
|
|
|
5,943
|
| | | |
5,338
|
|
|
|
12,942
|
|
| | | | | | | | | | | | | | |
|
Other expenses | | | | | | | | | | | | | | | |
Property management
| | | | |
6,473
| | | |
6,554
| | | | |
13,112
| | | |
13,581
| |
Fee and asset management
| | | | |
1,088
| | | |
961
| | | | |
2,053
| | | |
1,845
| |
General and administrative
| | | | |
12,272
| | | |
12,451
| | | | |
24,495
| | | |
25,319
| |
Interest
| | | | |
20,607
| | | |
21,966
| | | | |
40,981
| | | |
44,922
| |
Depreciation and amortization
| | | | |
75,569
| | | |
65,033
| | | | |
145,793
| | | |
128,767
| |
Expense on deferred compensation plans
| | | | |
435
|
|
|
|
3,441
|
| | | |
230
|
|
|
|
8,058
|
|
Total other expenses
| | | | |
116,444
|
|
|
|
110,406
|
| | | |
226,664
|
|
|
|
222,492
|
|
| | | | | | | | | | | | | | |
|
Loss on early retirement of debt
| | | | |
—
| | | |
—
| | | | |
—
| | | |
(323
|
)
|
Equity in income of joint ventures
| | | | |
1,872
|
|
|
|
1,785
|
| | | |
3,701
|
|
|
|
3,602
|
|
Income from continuing operations before income taxes | | | | | 40,252 | | | | 40,339 | | | | | 81,165 | | | | 76,799 | |
Income tax expense
| | | | |
(380
|
)
|
|
|
(25
|
)
| | | |
(768
|
)
|
|
|
(496
|
)
|
Net income | | | | | 39,872 | | | | 40,314 | | | | | 80,397 | | | | 76,303 | |
Less income allocated to non-controlling interests from continuing
operations
| | | | |
(1,201
|
)
|
|
|
(1,126
|
)
| | | |
(2,331
|
)
|
|
|
(2,254
|
)
|
Net income attributable to common shareholders | | | | | $38,671 |
|
|
| $39,188 |
| | | | $78,066 |
|
|
| $74,049 |
|
| | | | | | | | | | | | | | |
|
CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME | | | | | | | | | | | | | | | |
Net income | | | | | $39,872 | | | $40,314 | | | | $80,397 | | | $76,303 |
Other comprehensive income | | | | | | | | | | | | | | | |
Unrealized gain on cash flow hedging activities
| | | | |
5,181
| | | |
—
| | | | |
8,782
| | | |
—
| |
Reclassification of net loss on cash flow hedging activities,
prior service cost and net loss
on post retirement obligation
| | | | |
34
|
|
|
|
34
|
| | | |
69
|
|
|
|
68
|
|
Comprehensive income | | | | | 45,087 | | | | 40,348 | | | | | 89,248 | | | | 76,371 | |
Less income allocated to noncontrolling interests from continuing
operations
| | | | |
(1,201
|
)
|
|
|
(1,126
|
)
| | | |
(2,331
|
)
|
|
|
(2,254
|
)
|
Comprehensive income attributable to common shareholders | | | | | $43,886 |
|
|
| $39,222 |
| | | | $86,917 |
|
|
| $74,117 |
|
| | | | | | | | | | | | | | |
|
PER SHARE DATA | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
Total earnings per common share - basic
| | | | |
$0.40
| | | |
$0.43
| | | | |
$0.81
| | | |
$0.82
| |
Total earnings per common share - diluted
| | | | |
0.40
| | | |
0.43
| | | | |
0.81
| | | |
0.82
| |
| | | | | | | | | | | | | | |
|
Weighted average number of common shares outstanding: | | | | | | | | | | | | | | | |
Basic
| | | | |
95,243
| | | |
90,105
| | | | |
95,155
| | | |
90,015
| |
Diluted
| | | | |
95,337
| | | |
91,041
| | | | |
95,289
| | | |
90,995
| |
|
(a) Upon our adoption of ASU 2014-09, we are now presenting certain
revenue items, historically included as a component of other property
revenues, as rental revenues due to the nature and timing of revenue
recognition for these items being more closely aligned to a lease. This
new presentation has been applied prospectively as this reclassification
will not have an impact upon total property revenues or the opening
balance of retained earnings. Approximately $5.8 million and$11.4
million of rental revenue is related to this presentation for the three
and six months ended June 30, 2018, respectively. Had ASU 2014-09 been
effective as of January 1, 2017, we would have reclassified
approximately $5.7 million and $11.0 million from other property
revenues to rental revenue for the three and six months ended June 30,
2017, respectively.
Note: Please refer to the following pages for definitions and
reconciliations of all non-GAAP financial measures presented in this
document.
|
|
|
|
| |
CAMDEN | | | | | FUNDS FROM OPERATIONS |
| | | | | (In thousands, except per share and property data amounts) |
|
|
|
|
|
|
(Unaudited) | | | | | |
| | | | |
|
| | | | | Three Months Ended June 30, |
|
| Six Months Ended June 30, |
| | | | | 2018 |
|
| 2017 | | | 2018 |
|
| 2017 |
FUNDS FROM OPERATIONS | | | | | |
|
| | | | |
|
| |
| | | | | | | | | | | | | |
|
Net income attributable to common shareholders | | | | | $38,671 | | | | $39,188 | | | | $78,066 | | | | $74,049 | |
Real estate depreciation and amortization
| | | | |
73,980
| | | |
63,450
| | | |
142,575
| | | |
125,603
| |
Adjustments for unconsolidated joint ventures
| | | | |
2,257
| | | |
2,214
| | | |
4,504
| | | |
4,427
| |
Income allocated to non-controlling interests
| | | | |
1,201
|
|
|
|
1,126
|
| | |
2,331
|
|
|
|
2,254
|
|
Funds from operations | | | | | $116,109 |
|
|
| $105,978 |
| | | $227,476 |
|
|
| $206,333 |
|
| | | | | | | | | | | | | |
|
Less: recurring capitalized expenditures (a) | | | | |
(19,190
|
)
| | |
(16,775
|
)
| | |
(29,189
|
)
| | |
(26,469
|
)
|
| | | | |
|
|
|
| | |
|
|
|
|
Adjusted funds from operations - diluted | | | | | $96,919 |
|
|
| $89,203 |
| | | $198,287 |
|
|
| $179,864 |
|
| | | | | | | | | | | | | |
|
PER SHARE DATA | | | | | | | | | | | | | | |
Funds from operations - diluted
| | | | |
$1.19
| | | |
$1.15
| | | |
$2.34
| | | |
$2.24
| |
Adjusted funds from operations - diluted
| | | | |
1.00
| | | |
0.97
| | | |
2.04
| | | |
1.95
| |
Distributions declared per common share
| | | | |
0.77
| | | |
0.75
| | | |
1.54
| | | |
1.50
| |
| | | | | | | | | | | | | |
|
Weighted average number of common shares outstanding: | | | | | | | | | | | | | | |
FFO/AFFO - diluted
| | | | |
97,220
| | | |
92,119
| | | |
97,172
| | | |
92,074
| |
| | | | | | | | | | | | | |
|
PROPERTY DATA | | | | | | | | | | | | | | |
Total operating properties (end of period) (b) | | | | |
158
| | | |
155
| | | |
158
| | | |
155
| |
Total operating apartment homes in operating properties (end of
period) (b) | | | | |
54,181
| | | |
53,771
| | | |
54,181
| | | |
53,771
| |
Total operating apartment homes (weighted average)
| | | | |
46,682
| | | |
46,053
| | | |
46,518
| | | |
45,882
| |
|
(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.
|
CAMDEN |
|
|
|
| BALANCE SHEETS |
| | | | | (In thousands) |
|
|
|
|
|
|
(Unaudited) | | | | | |
| | | | |
|
| | | | | Jun 30, 2018 |
|
| Mar 31, 2018 |
|
| Dec 31, 2017 |
|
| Sep 30, 2017 |
|
| Jun 30, 2017 |
ASSETS | | | | | |
|
| |
|
| |
|
| |
|
| |
Real estate assets, at cost
| | | | | | | | | | | | | | | | | |
Land
| | | | |
$1,066,077
| | | |
$1,053,578
| | | |
$1,021,031
| | | |
$1,016,097
| | | |
$1,008,459
| |
Buildings and improvements
| | | | |
6,620,169
|
|
|
|
6,494,229
|
|
|
|
6,269,481
|
|
|
|
6,269,561
|
|
|
|
6,199,435
|
|
| | | | |
7,686,246
| | | |
7,547,807
| | | |
7,290,512
| | | |
7,285,658
| | | |
7,207,894
| |
Accumulated depreciation
| | | | |
(2,255,737
|
)
|
|
|
(2,185,452
|
)
|
|
|
(2,118,839
|
)
|
|
|
(2,080,989
|
)
|
|
|
(2,016,259
|
)
|
Net operating real estate assets
| | | | |
5,430,509
| | | |
5,362,355
| | | |
5,171,673
| | | |
5,204,669
| | | |
5,191,635
| |
Properties under development, including land
| | | | |
373,350
| | | |
399,903
| | | |
377,231
| | | |
363,481
| | | |
373,294
| |
Investments in joint ventures
| | | | |
26,205
|
|
|
|
26,863
|
|
|
|
27,237
|
|
|
|
28,420
|
|
|
|
29,665
|
|
Total real estate assets
| | | | |
5,830,064
| | | |
5,789,121
| | | |
5,576,141
| | | |
5,596,570
| | | |
5,594,594
| |
Accounts receivable – affiliates
| | | | |
23,473
| | | |
23,397
| | | |
24,038
| | | |
23,620
| | | |
23,592
| |
Other assets, net (a)(b) | | | | |
204,717
| | | |
199,420
| | | |
195,764
| | | |
189,253
| | | |
155,784
| |
Cash and cash equivalents
| | | | |
64,071
| | | |
101,401
| | | |
368,492
| | | |
350,274
| | | |
16,318
| |
Restricted cash
| | | | |
9,581
|
|
|
|
15,036
|
|
|
|
9,313
|
|
|
|
9,178
|
|
|
|
8,312
|
|
Total assets
| | | | |
$6,131,906
|
|
|
|
$6,128,375
|
|
|
|
$6,173,748
|
|
|
|
$6,168,895
|
|
|
|
$5,798,600
|
|
| | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | |
|
LIABILITIES AND EQUITY | | | | | | | | | | | | | | | | | |
Liabilities
| | | | | | | | | | | | | | | | | |
Notes payable
| | | | | | | | | | | | | | | | | |
Unsecured
| | | | |
$1,339,659
| | | |
$1,339,142
| | | |
$1,338,628
| | | |
$1,338,117
| | | |
$1,437,608
| |
Secured
| | | | |
865,629
| | | |
865,798
| | | |
865,970
| | | |
866,134
| | | |
866,292
| |
Accounts payable and accrued expenses
| | | | |
127,777
| | | |
123,706
| | | |
128,313
| | | |
127,557
| | | |
116,754
| |
Accrued real estate taxes
| | | | |
52,461
| | | |
29,061
| | | |
51,383
| | | |
70,027
| | | |
48,559
| |
Distributions payable
| | | | |
75,071
| | | |
75,083
| | | |
72,943
| | | |
72,962
| | | |
69,347
| |
Other liabilities (b)(c) | | | | |
156,767
|
|
|
|
157,002
|
|
|
|
154,567
|
|
|
|
154,506
|
|
|
|
134,851
|
|
Total liabilities
| | | | |
2,617,364
| | | |
2,589,792
| | | |
2,611,804
| | | |
2,629,303
| | | |
2,673,411
| |
| | | | | | | | | | | | | | | | |
|
Commitments and contingencies
| | | | | | | | | | | | | | | | | |
Non-qualified deferred compensation share awards
| | | | |
85,938
| | | |
76,174
| | | |
77,230
| | | |
73,015
| | | |
84,050
| |
| | | | | | | | | | | | | | | | |
|
Equity
| | | | | | | | | | | | | | | | | |
Common shares of beneficial interest
| | | | |
1,027
| | | |
1,026
| | | |
1,028
| | | |
1,028
| | | |
978
| |
Additional paid-in capital
| | | | |
4,132,404
| | | |
4,132,056
| | | |
4,137,161
| | | |
4,134,206
| | | |
3,678,660
| |
Distributions in excess of net income attributable to common
shareholders
| | | | |
(436,575
|
)
| | |
(396,596
|
)
| | |
(368,703
|
)
| | |
(383,584
|
)
| | |
(351,910
|
)
|
Treasury shares, at cost
| | | | |
(355,752
|
)
| | |
(356,687
|
)
| | |
(364,066
|
)
| | |
(364,736
|
)
| | |
(364,785
|
)
|
Accumulated other comprehensive loss (d) | | | | |
8,794
|
|
|
|
3,579
|
|
|
|
(57
|
)
|
|
|
(7
|
)
|
|
|
(1,795
|
)
|
Total common equity
| | | | |
3,349,898
| | | |
3,383,378
| | | |
3,405,363
| | | |
3,386,907
| | | |
2,961,148
| |
Non-controlling interests
| | | | |
78,706
|
|
|
|
79,031
|
|
|
|
79,351
|
|
|
|
79,670
|
|
|
|
79,991
|
|
Total equity
| | | | |
3,428,604
|
|
|
|
3,462,409
|
|
|
|
3,484,714
|
|
|
|
3,466,577
|
|
|
|
3,041,139
|
|
Total liabilities and equity
| | | | |
$6,131,906
|
|
|
|
$6,128,375
|
|
|
|
$6,173,748
|
|
|
|
$6,168,895
|
|
|
|
$5,798,600
|
|
| | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | |
|
| | | | |
|
| | | | | | | | | | | | | | | | |
|
(a) Includes net deferred charges of: | | | | | $724 | | | | $929 | | | | $1,125 | | | | $1,312 | | | | $1,487 | |
| | | | | | | | | | | | | | | | |
|
(b) Includes net asset fair value of derivative instruments: | | | | | $10,472 | | | | $5,291 | | | | $1,690 | | | | $1,754 | | | | $— | |
| | | | | | | | | | | | | | | | |
|
(c) Includes deferred revenues of: | | | | | $659 | | | | $536 | | | | $426 | | | | $1,463 | | | | $513 | |
| | | | | | | | | | | | | | | | |
|
(d) Represents the unrealized net loss and unamortized prior
service costs on post retirement obligations, and unrealized net
gain on cash flow hedging activities. |
|
|
CAMDEN |
NON-GAAP FINANCIAL MEASURES |
DEFINITIONS & RECONCILIATIONS |
(In thousands, except per share amounts) |
|
(Unaudited) |
|
This document contains certain non-GAAP financial measures
management believes are useful in evaluating an equity REIT's
performance. Camden's definitions and calculations of non-GAAP
financial measures may differ from those used by other REITs, and
thus may not be comparable. The non-GAAP financial measures should
not be considered as an alternative to net income as an indication
of our operating performance, or to net cash provided by operating
activities as a measure of our liquidity.
|
|
FFO |
|
The National Association of Real Estate Investment Trusts (“NAREIT”)
currently defines FFO as net income (computed in accordance with
accounting principles generally accepted in the United States of
America ("GAAP")), excluding gains (or losses) associated with the
sale of previously depreciated operating properties, real estate
depreciation and amortization, impairments of depreciable assets,
and adjustments for unconsolidated joint ventures. Our calculation
of diluted FFO also assumes conversion of all potentially dilutive
securities, including certain non-controlling interests, which are
convertible into common shares. We consider FFO to be an appropriate
supplemental measure of operating performance because, by excluding
gains or losses on dispositions of operating properties, and
depreciation, FFO can assist in the comparison of the operating
performance of a company’s real estate investments between periods
or to different companies. A reconciliation of net income
attributable to common shareholders to FFO is provided below:
|
|
Adjusted FFO |
|
In addition to FFO, we compute Adjusted FFO ("AFFO") as a
supplemental measure of operating performance. AFFO is calculated
utilizing FFO less recurring capital expenditures which are
necessary to help preserve the value of and maintain the
functionality at our communities. 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, |
| | | | | 2018 |
|
| 2017 | | | 2018 |
|
| 2017 |
Net income attributable to common shareholders
| | | | |
$38,671
| |
|
|
$39,188
| | | |
$78,066
| |
|
|
$74,049
| |
Real estate depreciation and amortization
| | | | |
73,980
| | | |
63,450
| | | |
142,575
| | | |
125,603
| |
Adjustments for unconsolidated joint ventures
| | | | |
2,257
| | | |
2,214
| | | |
4,504
| | | |
4,427
| |
Income allocated to non-controlling interests
| | | | |
1,201
|
|
|
|
1,126
|
| | |
2,331
|
|
|
|
2,254
|
|
Funds from operations | | | | | $116,109 |
|
|
| $105,978 |
| | | $227,476 |
|
|
| $206,333 |
|
| | | | | | | | | | | | | |
|
Less: recurring capitalized expenditures
| | | | |
(19,190
|
)
| | |
(16,775
|
)
| | |
(29,189
|
)
| | |
(26,469
|
)
|
| | | | |
|
|
|
| | |
|
|
|
|
Adjusted funds from operations | | | | | $96,919 |
|
|
| $89,203 |
| | | $198,287 |
|
|
| $179,864 |
|
| | | | | | | | | | | | | |
|
Weighted average number of common shares outstanding:
| | | | | | | | | | | | | | |
EPS diluted
| | | | |
95,337
| | | |
91,041
| | | |
95,289
| | | |
90,995
| |
FFO/AFFO diluted
| | | | |
97,220
| | | |
92,119
| | | |
97,172
| | | |
92,074
| |
| | | | | | | | | | | | | |
|
Total earnings per common share - diluted
| | | | |
$0.40
| | | |
$0.43
| | | |
$0.81
| | | |
$0.82
| |
FFO per common share - diluted
| | | | |
$1.19
| | | |
$1.15
| | | |
$2.34
| | | |
$2.24
| |
AFFO per common share - diluted
| | | | |
$1.00
| | | |
$0.97
| | | |
$2.04
| | | |
$1.95
| |
|
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:
|
|
|
|
|
| 3Q18 Range |
|
| 2018 Range |
| | | | | Low |
|
| High | | | Low |
|
| High |
Expected earnings per common share - diluted
| | | | |
$0.39
| |
|
|
$0.43
| | | |
$1.55
| |
|
|
$1.67
|
Expected real estate depreciation and amortization
| | | | |
0.75
| | | |
0.75
| | | |
3.00
| | | |
3.00
|
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
| | | | |
$1.17
| | | |
$1.21
| | | |
$4.68
| | | |
$4.80
|
|
Note: This table contains forward-looking statements. Please see the
paragraph regarding forward-looking statements earlier in this document.
|
CAMDEN |
NON-GAAP FINANCIAL MEASURES |
DEFINITIONS & RECONCILIATIONS |
(In thousands, except per share amounts) |
|
|
(Unaudited) |
|
Net Operating Income (NOI) |
|
NOI is defined by the Company as total property income less property
operating and maintenance expenses less real estate taxes. NOI is
further detailed in the Components of Property NOI schedules on page
11. 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, |
| | | | | 2018 |
|
| 2017 | | | 2018 |
|
| 2017 |
Net income
| | | | |
$39,872
| |
|
|
$40,314
| | | |
$80,397
| |
|
|
$76,303
| |
Less: Fee and asset management income
| | | | |
(1,826
|
)
| | |
(1,942
|
)
| | |
(3,824
|
)
| | |
(3,690
|
)
|
Less: Interest and other income
| | | | |
(491
|
)
| | |
(560
|
)
| | |
(1,284
|
)
| | |
(1,194
|
)
|
Less: Income on deferred compensation plans
| | | | |
(435
|
)
| | |
(3,441
|
)
| | |
(230
|
)
| | |
(8,058
|
)
|
Plus: Property management expense
| | | | |
6,473
| | | |
6,554
| | | |
13,112
| | | |
13,581
| |
Plus: Fee and asset management expense
| | | | |
1,088
| | | |
961
| | | |
2,053
| | | |
1,845
| |
Plus: General and administrative expense
| | | | |
12,272
| | | |
12,451
| | | |
24,495
| | | |
25,319
| |
Plus: Interest expense
| | | | |
20,607
| | | |
21,966
| | | |
40,981
| | | |
44,922
| |
Plus: Depreciation and amortization expense
| | | | |
75,569
| | | |
65,033
| | | |
145,793
| | | |
128,767
| |
Plus: Expense on deferred compensation plans
| | | | |
435
| | | |
3,441
| | | |
230
| | | |
8,058
| |
Plus: Loss on early retirement of debt
| | | | |
—
| | | |
—
| | | |
—
| | | |
323
| |
Less: Equity in income of joint ventures
| | | | |
(1,872
|
)
| | |
(1,785
|
)
| | |
(3,701
|
)
| | |
(3,602
|
)
|
Plus: Income tax expense
| | | | |
380
|
|
|
|
25
|
| | |
768
|
|
|
|
496
|
|
NOI
| | | | |
$152,072
| | | |
$143,017
| | | |
$298,790
| | | |
$283,070
| |
| | | | | | | | | | | | | |
|
"Same Property" Communities
| | | | |
$131,729
| | | |
$127,703
| | | |
$260,333
| | | |
$251,384
| |
Non-"Same Property" Communities
| | | | |
16,144
| | | |
12,387
| | | |
30,809
| | | |
23,811
| |
Development and Lease-Up Communities
| | | | |
2,858
| | | |
389
| | | |
4,906
| | | |
431
| |
Dispositions/Other
| | | | |
1,341
|
|
|
|
2,538
|
| | |
2,742
|
|
|
|
7,444
|
|
NOI
| | | | |
$152,072
| | | |
$143,017
| | | |
$298,790
| | | |
$283,070
| |
|
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. 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, |
| | | | | 2018 |
|
| 2017 | | | 2018 |
|
| 2017 |
Net income attributable to common shareholders
| | | | |
$38,671
| |
|
|
$39,188
| | | |
$78,066
| |
|
|
$74,049
| |
Plus: Interest expense
| | | | |
20,607
| | | |
21,966
| | | |
40,981
| | | |
44,922
| |
Plus: Depreciation and amortization expense
| | | | |
75,569
| | | |
65,033
| | | |
145,793
| | | |
128,767
| |
Plus: Income allocated to non-controlling interests from continuing
operations
| | | | |
1,201
| | | |
1,126
| | | |
2,331
| | | |
2,254
| |
Plus: Income tax expense
| | | | |
380
| | | |
25
| | | |
768
| | | |
496
| |
Plus: Loss on early retirement of debt
| | | | |
—
| | | |
—
| | | |
—
| | | |
323
| |
Less: Equity in income of joint ventures
| | | | |
(1,872
|
)
|
|
|
(1,785
|
)
| | |
(3,701
|
)
|
|
|
(3,602
|
)
|
Adjusted EBITDA
| | | | |
$134,556
| | | |
$125,553
| | | |
$264,238
| | | |
$247,209
| |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180802005761/en/
Contacts:
Camden Property Trust
Kim Callahan, 713-354-2549
Source: Camden Property Trust
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