Camden Property Trust (NYSE:CPT) (the "Company") announced today
operating results for the three months ended March 31, 2024. Net
Income Attributable to Common Shareholders (“EPS”), Funds from
Operations (“FFO”), Core Funds from Operations ("Core FFO"), and
Core Adjusted Funds from Operations (“Core AFFO”) for the three
months ended March 31, 2024 are detailed below. A reconciliation of
EPS to FFO, Core FFO, and Core AFFO is included in the financial
tables accompanying this press release.
Three Months Ended March 31,
Per Diluted Share
2024
2023
EPS
$0.77
$0.39
FFO
$1.67
$1.66
Core FFO
$1.70
$1.66
Core AFFO
$1.50
$1.50
Three Months Ended
1Q24 Guidance
1Q24 Guidance
Per Diluted Share
March 31, 2024
Midpoint
Variance
EPS
$0.77
$0.76
$0.01
FFO
$1.67
$1.64
$0.03
Core FFO
$1.70
$1.67
$0.03
Quarterly Growth
Sequential Growth
Same Property Results
1Q24 vs. 1Q23
1Q24 vs. 4Q23
Revenues
2.5%
0.5%
Expenses
2.9%
2.3%
Net Operating Income ("NOI")
2.3%
(0.5)%
Same Property Results
1Q24
1Q23
4Q23
Occupancy
95.0%
95.3%
94.9%
"We are pleased to report strong performance for the quarter,
with earnings and same property growth exceeding expectations,"
said Richard J. Campo, Camden’s Chairman and CEO. "We have revised
our 2024 outlook for property operating expense growth downward
from 4.50% to 3.25% at the midpoint of our guidance range as a
result of favorable real estate tax valuations, lower core
insurance claims, and the successful renewal of our insurance
policies on May 1st. However, given the recent rise in interest
rates and lowered odds of future rate cuts this year, we expect to
incur higher than anticipated interest expense for the remainder of
the year. As a result of these events, we are maintaining our
full-year 2024 guidance of $6.74 per share for Core FFO at the
midpoint of our range."
For 2024, the Company defines same property communities as
communities wholly-owned and stabilized since January 1, 2023,
excluding communities under redevelopment and properties held for
sale. A reconciliation of net income to NOI and same property NOI
is included in the financial tables accompanying this press
release.
Operating Statistics - Same Property
Portfolio
New Lease and Renewal Data - Date Signed
(1)
April 2024*
April 2023
1Q24
1Q23
Signed New Lease Rates
(1.8)%
2.7%
(4.1)%
2.0%
Signed Renewal Rates
3.4%
6.0%
3.4%
7.0%
Signed Blended Lease Rates
0.6%
4.1%
(0.9)%
4.0%
New Lease and Renewal Data - Date
Effective (2)
April 2024*
April 2023
1Q24
1Q23
Effective New Lease Rates
(3.4)%
1.8%
(4.4)%
2.0%
Effective Renewal Rates
3.5%
7.2%
3.8%
7.8%
Effective Blended Lease Rates
(0.2)%
3.9%
(1.1)%
4.5%
*Preliminary data as of April 30, 2024
(1) Average change in same property new
lease and renewal rates vs. expiring lease rates when signed.
(2) Average change in same property new
lease and renewal rates vs. expiring lease rates when
effective.
Occupancy, Bad Debt and Turnover Data
April 2024*
April 2023
1Q24
1Q23
Occupancy
95.2%
95.4%
95.0%
95.3%
Bad Debt
0.6%
1.9%
0.8%
1.7%
Annualized Gross Turnover
47%
47%
45%
44%
Annualized Net Turnover
36%
37%
34%
36%
*Preliminary data as of April 30, 2024
Development Activity
During the quarter, lease-up was completed at Camden NoDa in
Charlotte, NC. Additionally, leasing began at Camden Long Meadow
Farms in Richmond, TX and leasing continued at Camden Durham in
Durham, NC and Camden Woodmill Creek in The Woodlands, TX.
Development Communities - Construction Ongoing ($ in
millions)
Total
Total
% Leased
Community Name
Location
Homes
Estimated Cost
as of 4/30/2024
Camden Durham
Durham, NC
420
$145.0
41%
Camden Woodmill Creek
The Woodlands, TX
189
75.0
35%
Camden Long Meadow Farms
Richmond, TX
188
80.0
12%
Camden Village District
Raleigh, NC
369
138.0
Total
1,166
$438.0
Disposition Activity
During the quarter, the Company disposed of a 592-apartment home
community in Atlanta, GA for approximately $115.0 million and
recognized a gain of approximately $43.8 million.
Capital Markets
Transactions
During the quarter, the Company issued $400 million of senior
unsecured notes due 2034. These ten-year notes were issued at
99.638% of par value with a coupon of 4.900%, a yield of 4.94%, and
an effective interest rate of 5.06% per annum after giving effect
to deducting the underwriting discounts and other expenses of the
offering. Also during the quarter, the Company repaid the
outstanding balance on its $300 million unsecured term loan and
recognized charges in conjunction with this early retirement of
debt of approximately $0.9 million, and repaid its 4.36% $250
million senior unsecured notes payable which matured in January
2024.
Share Repurchase
During the quarter, Camden repurchased 471,282 common shares at
an average price of $96.91 per share for a total of $45.7 million.
The Company had approximately $454.3 million remaining under its
stock repurchase program as of March 31, 2024. Subsequent to
quarter-end, Camden repurchased 44,692 common shares at an average
price of $96.52 per share for a total of $4.3 million. Year to
date, Camden repurchased 515,974 common shares at an average price
of $96.88 for approximately $50.0 million. The Company currently
has approximately $450.0 million remaining under its stock
repurchase program.
Liquidity Analysis
As of March 31, 2024, Camden had nearly $1.3 billion of
liquidity comprised of approximately $92.7 million in cash and cash
equivalents, and nearly $1.2 billion of availability under its
unsecured credit facility. At quarter-end, the Company had $97.4
million left to fund under its existing wholly-owned development
pipeline.
Earnings Guidance
Camden provided initial earnings guidance for 2024 based on its
current and expected views of the apartment market and general
economic conditions, and provided guidance for second quarter 2024
as detailed below. Expected EPS excludes gains, if any, from future
real estate transactions.
2Q24
2024
2024 Midpoint
Per Diluted Share
Range
Range
Current
Prior
Change
EPS
$0.34 - $0.38
$1.74 - $1.98
$1.86
$1.87
$(0.01)
FFO
$1.64 - $1.68
$6.57 - $6.81
$6.69
$6.69
$0.00
Core FFO(1)
$1.65 - $1.69
$6.62 - $6.86
$6.74
$6.74
$0.00
(1) The Company's 2024 core FFO guidance
includes approximately $0.05 per share of non-core adjustments for
casualty-related expenses, legal costs, loss on early retirement of
debt, severance, and expensed pursuit costs.
2024
2024 Midpoint
Same Property Growth Guidance
Range
Current
Prior
Change
Revenues
0.75% - 2.25%
1.50%
1.50%
0.00%
Expenses
2.75% - 3.75%
3.25%
4.50%
(1.25)%
NOI
(0.75%) - 1.75%
0.50%
0.00%
0.50%
Camden intends to update its earnings guidance to the market on
a quarterly basis. Additional information on the Company’s 2024
financial outlook including key assumptions for same property
growth and a reconciliation of expected EPS to expected FFO and
expected Core FFO are included in the financial tables accompanying
this press release.
Conference Call
Friday, May 3, 2024 at 10:00 AM CT Domestic Dial-In Number:
(888) 317-6003; International Dial-In Number: (412) 317-6061;
Passcode: 0739105 Webcast: https://investors.camdenliving.com
The Company strongly encourages interested parties to join the
call via webcast in order to view any associated videos, slide
presentations, etc. The dial-in phone line will be reserved for
accredited analysts and investors who plan to pose questions to
Management during the Q&A session of the call.
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 500 Company, is a real estate
company primarily engaged in the ownership, management,
development, redevelopment, acquisition, and construction of
multifamily apartment communities. Camden owns and operates 171
properties containing 58,061 apartment homes across the United
States. Upon completion of 4 properties currently under
development, the Company’s portfolio will increase to 59,227
apartment homes in 175 properties. Camden has been recognized as
one of the 100 Best Companies to Work For® by FORTUNE magazine for
17 consecutive years, most recently 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 March
31,
2024
2023
OPERATING
DATA
Property revenues (a)
$383,141
$378,163
Property expenses
Property operating and maintenance
89,044
85,285
Real estate taxes
49,501
49,396
Total property expenses
138,545
134,681
Non-property income
Fee and asset management
1,284
578
Interest and other income
1,768
62
Income on deferred compensation plans
5,819
5,912
Total non-property income
8,871
6,552
Other expenses
Property management
9,394
8,297
Fee and asset management
443
413
General and administrative
16,693
15,356
Interest
32,537
32,843
Depreciation and amortization
144,802
142,444
Expense on deferred compensation plans
5,819
5,912
Total other expenses
209,688
205,265
Loss on early retirement of debt
(921
)
—
Gain on sale of operating property
43,806
—
Income from continuing operations
before income taxes
86,664
44,769
Income tax expense
(905
)
(1,150
)
Net income
85,759
43,619
Less income allocated to non-controlling
interests
(1,870
)
(1,702
)
Net income attributable to common
shareholders
$83,889
$41,917
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
Net income
$85,759
$43,619
Other comprehensive income
Unrealized gain on cash flow hedging
activities
85
—
Reclassification of net loss on cash flow
hedging activities, prior service cost and net loss on post
retirement obligation
1,089
359
Comprehensive income
86,933
43,978
Less income allocated to non-controlling
interests
(1,870
)
(1,702
)
Comprehensive income attributable to
common shareholders
$85,063
$42,276
PER SHARE
DATA
Total earnings per common share -
basic
$0.77
$0.39
Total earnings per common share -
diluted
0.77
0.39
Weighted average number of common
shares outstanding:
Basic
108,706
108,568
Diluted
108,729
108,604
(a)
We elected to combine 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 March 31, 2024, we recognized $383.1 million
of property revenue which consisted of approximately $341.5 million
of rental revenue and approximately $41.6 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 $378.2 million recognized for the three
months ended March 31, 2023, made up of approximately $337.2
million of rental revenue and approximately $41.0 million of
amounts received under contractual terms for other services
considered to be non-lease components within our lease contracts
Revenue related to utility rebilling to residents was $10.7 million
and $10.5 million for the three months ended March 31, 2024 and
2023, 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 March
31,
2024
2023
FUNDS FROM
OPERATIONS
Net income attributable to common
shareholders
$83,889
$41,917
Real estate depreciation and
amortization
141,847
139,387
Income allocated to non-controlling
interests
1,870
1,702
Gain on sale of operating properties
(43,806
)
—
Funds from operations
$183,800
$183,006
Plus: Casualty-related expenses, net of
recoveries
1,523
(42
)
Plus: Severance
506
—
Plus: Legal costs and settlements, net of
recoveries
852
84
Plus: Loss on early retirement of debt
921
—
Core funds from operations
$187,602
$183,048
Less: recurring capitalized expenditures
(a)
(22,025
)
(17,579
)
Core adjusted funds from
operations
$165,577
$165,469
PER SHARE
DATA
Funds from operations - diluted
$1.67
$1.66
Core funds from operations - diluted
1.70
1.66
Core adjusted funds from operations -
diluted
1.50
1.50
Distributions declared per common
share
1.03
1.00
Weighted average number of common
shares outstanding:
FFO/Core FFO/Core AFFO - diluted
110,323
110,201
PROPERTY
DATA
Total operating properties (end of period)
(b)
171
172
Total operating apartment homes in
operating properties (end of period) (b)
58,061
58,702
Total operating apartment homes (weighted
average)
58,336
58,837
(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)
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
ASSETS
Real estate assets, at cost
Land
$1,706,983
$1,711,873
$1,732,804
$1,727,182
$1,722,881
Buildings and improvements
11,014,440
10,993,390
10,963,667
10,848,837
10,778,795
12,721,423
12,705,263
12,696,471
12,576,019
12,501,676
Accumulated depreciation
(4,439,710
)
(4,332,524
)
(4,254,388
)
(4,113,095
)
(3,987,438
)
Net operating real estate assets
8,281,713
8,372,739
8,442,083
8,462,924
8,514,238
Properties under development, including
land
477,481
486,864
499,761
516,543
515,134
Total real estate assets
8,759,194
8,859,603
8,941,844
8,979,467
9,029,372
Accounts receivable – affiliates
10,350
11,905
12,057
12,121
12,121
Other assets, net (a)
233,137
244,182
237,594
239,958
226,394
Cash and cash equivalents
92,693
259,686
14,600
20,326
20,419
Restricted cash
8,230
8,361
8,369
8,531
6,863
Total assets
$9,103,604
$9,383,737
$9,214,464
$9,260,403
$9,295,169
LIABILITIES AND EQUITY
Liabilities
Notes payable
Unsecured
$3,223,285
$3,385,309
$3,323,057
$3,352,415
$3,232,682
Secured
330,184
330,127
330,071
330,015
515,134
Accounts payable and accrued expenses
213,896
222,599
211,759
192,613
191,468
Accrued real estate taxes
46,612
96,517
128,794
93,642
48,084
Distributions payable
113,556
110,427
110,463
110,465
110,444
Other liabilities (b)
182,443
186,987
175,341
189,711
193,804
Total liabilities
4,109,976
4,331,966
4,279,485
4,268,861
4,291,616
Equity
Common shares of beneficial interest
1,157
1,156
1,156
1,156
1,156
Additional paid-in capital
5,919,851
5,914,868
5,911,627
5,907,828
5,903,437
Distributions in excess of net income
attributable to common shareholders
(641,663
)
(613,651
)
(727,117
)
(666,218
)
(648,457
)
Treasury shares
(356,880
)
(320,364
)
(320,702
)
(320,675
)
(321,431
)
Accumulated other comprehensive loss
(c)
(78
)
(1,252
)
(699
)
(1,057
)
(1,415
)
Total common equity
4,922,387
4,980,757
4,864,265
4,921,034
4,933,290
Non-controlling interests
71,241
71,014
70,714
70,508
70,263
Total equity
4,993,628
5,051,771
4,934,979
4,991,542
5,003,553
Total liabilities and equity
$9,103,604
$9,383,737
$9,214,464
$9,260,403
$9,295,169
(a) Includes net deferred charges of:
$4,286
$5,879
$6,481
$7,033
$7,710
(b) Includes deferred revenues of:
$958
$1,030
$1,167
$1,239
$1,348
(c) Represents the unrealized net loss and
unamortized prior service costs on post retirement obligations, and
unrealized net loss on cash flow hedging activities.
CAMDEN
NON-GAAP FINANCIAL
MEASURES
DEFINITIONS &
RECONCILIATIONS
(In thousands, except per share
amounts)
(Unaudited)
This document contains certain non-GAAP financial measures
management believes are useful in evaluating an equity REIT's
performance. Camden's definitions and calculations of non-GAAP
financial measures may differ from those used by other REITs, and
thus may not be comparable. The non-GAAP financial measures should
not be considered as an alternative to net income as an indication
of our operating performance, or to net cash provided by operating
activities as a measure of our liquidity.
FFO
The National Association of Real Estate Investment Trusts
(“NAREIT”) currently defines FFO as net income (computed in
accordance with accounting principles generally accepted in the
United States of America ("GAAP")), excluding 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.
Core FFO
Core FFO represents FFO as further adjusted for items not
considered part of our core business operations, such as
casualty-related expenses, net of recoveries, severance, legal
costs and settlements, net of recoveries, loss on early retirement
of debt, expensed transaction, development and other pursuit costs,
net of recoveries, net below market lease amortization, pandemic
resident relief, (gain)/loss on sale of land, advocacy
contributions, and miscellaneous (income)/expense adjustments. We
consider Core FFO to be a helpful supplemental measure of operating
performance as it excludes not only depreciation expense of real
estate assets, but it also excludes certain items which by their
nature are not comparable period over period and therefore tends to
obscure actual operating performance. Our definition of Core FFO
may differ from other REITs, and there can be no assurance our
basis for computing this measure is comparable to other REITs.
Core Adjusted FFO
In addition to FFO & Core FFO, we compute Core Adjusted FFO
("Core AFFO") as a supplemental measure of operating performance.
Core AFFO is calculated utilizing Core 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 Core FFO and
Core AFFO is provided below:
Three Months Ended March
31,
2024
2023
Net income attributable to common
shareholders
$83,889
$41,917
Real estate depreciation and
amortization
141,847
139,387
Income allocated to non-controlling
interests
1,870
1,702
Gain on sale of operating properties
(43,806
)
—
Funds from operations
$183,800
$183,006
Plus: Casualty-related expenses, net of
recoveries
1,523
(42
)
Plus: Severance
506
—
Plus: Legal costs and settlements, net of
recoveries
852
84
Plus: Loss on early retirement of debt
921
—
Core funds from operations
$187,602
$183,048
Less: recurring capitalized
expenditures
(22,025
)
(17,579
)
Core adjusted funds from
operations
$165,577
$165,469
Weighted average number of common shares
outstanding:
EPS diluted
108,729
108,604
FFO/Core FFO/ Core AFFO diluted
110,323
110,201
CAMDEN
NON-GAAP FINANCIAL
MEASURES
DEFINITIONS &
RECONCILIATIONS
(In thousands, except per share
amounts)
(Unaudited)
Reconciliation of
FFO, Core FFO, and Core AFFO per share
Three Months Ended March
31,
2024
2023
Total Earnings Per Common Share -
Diluted
$0.77
$0.39
Real estate depreciation and
amortization
1.28
1.26
Income allocated to non-controlling
interests
0.02
0.01
Gain on sale of operating property
(0.40
)
—
FFO per common share - Diluted
$1.67
$1.66
Plus: Casualty-related expenses, net of
recoveries
0.01
—
Plus: Legal costs and settlements, net of
recoveries
0.01
—
Plus: Loss on early retirement of debt
0.01
—
Plus: Severance
0.00
—
Core FFO per common share -
Diluted
$1.70
$1.66
Less: recurring capitalized
expenditures
(0.20
)
(0.16
)
Core AFFO per common share -
Diluted
$1.50
$1.50
Expected FFO & Core
FFO
Expected FFO and Core FFO is calculated in a method consistent
with historical FFO and Core FFO, and is considered appropriate
supplemental measures of expected operating performance when
compared to expected earnings per common share (EPS). A
reconciliation of the ranges provided for diluted EPS to expected
FFO and expected Core FFO per diluted share is provided below:
2Q24
Range
2024
Range
Low
High
Low
High
Expected earnings per common share -
diluted
$0.34
$0.38
$1.74
$1.98
Expected real estate depreciation and
amortization
1.28
1.28
5.16
5.16
Expected income allocated to
non-controlling interests
0.02
0.02
0.07
0.07
Expected (gain) on sale of operating
properties
—
—
(0.40
)
(0.40
)
Expected FFO per share - diluted
$1.64
$1.68
$6.57
$6.81
Anticipated Adjustments to FFO
0.01
0.01
0.05
0.05
Expected Core FFO per share - diluted
$1.65
$1.69
$6.62
$6.86
Note: This table contains forward-looking
statements. Please see 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 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. Our definition of NOI 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 net
income to net operating income is provided below:
Three months ended March
31,
2024
2023
Net income
$85,759
$43,619
Less: Fee and asset management income
(1,284
)
(578
)
Less: Interest and other income
(1,768
)
(62
)
Less: (Income) on deferred compensation
plans
(5,819
)
(5,912
)
Plus: Property management expense
9,394
8,297
Plus: Fee and asset management expense
443
413
Plus: General and administrative
expense
16,693
15,356
Plus: Interest expense
32,537
32,843
Plus: Depreciation and amortization
expense
144,802
142,444
Plus: Expense on deferred compensation
plans
5,819
5,912
Plus: Loss on early retirement of debt
921
—
Less: Gain on sale of operating
property
(43,806
)
—
Plus: Income tax expense
905
1,150
NOI
$244,596
$243,482
"Same Property" Communities
$234,634
$229,378
Non-"Same Property" Communities
9,143
6,170
Development and Lease-Up Communities
2
(3
)
Disposition/Other
817
7,937
NOI
$244,596
$243,482
CAMDEN
NON-GAAP FINANCIAL
MEASURES
DEFINITIONS &
RECONCILIATIONS
(In thousands, except per share
amounts)
(Unaudited)
EBITDAre and Adjusted
EBITDAre
Earnings Before Interest, Taxes, Depreciation, and Amortization
for Real Estate (“EBITDAre”) and Adjusted EBITDAre are supplemental
measures of our financial performance. EBITDAre is calculated in
accordance with the definition adopted by NAREIT as earnings before
interest, taxes, depreciation and amortization plus or minus losses
and gains on the disposition of depreciated property, including
gains (losses) on change of control, plus impairment write-downs of
depreciated property with adjustments to reflect the Company’s
share of EBITDAre of unconsolidated joint ventures.
Adjusted EBITDAre represents EBITDAre as further adjusted for
non-core items. Adjusted EBITDAre excludes equity in (income) loss
of joint ventures, (gain) loss on land, and loss on early
retirement of debt. The Company considers EBITDAre and Adjusted
EBITDAre to be appropriate supplemental measures of operating
performance to net income because it represents income before
non-cash depreciation and the cost of debt, and excludes gains or
losses from property dispositions. Annualized Adjusted EBITDAre is
Adjusted EBITDAre as reported for the period multiplied by 4 for
quarter results. A reconciliation of net income to EBITDAre and
adjusted EBITDAre is provided below:
Three months ended March
31,
2024
2023
Net income
$85,759
$43,619
Plus: Interest expense
32,537
32,843
Plus: Depreciation and amortization
expense
144,802
142,444
Plus: Income tax expense
905
1,150
Less: Gain on sale of operating
property
(43,806
)
—
EBITDAre
$220,197
$220,056
Plus: Casualty-related expenses, net of
recoveries
1,523
(42
)
Plus: Legal costs and settlements, net of
recoveries
852
84
Plus: Loss on early retirement of debt
921
—
Plus: Severance
506
—
Adjusted EBITDAre
$223,999
$220,098
Annualized Adjusted EBITDAre
$895,996
$880,392
Net Debt to Annualized Adjusted
EBITDAre
The Company believes Net Debt to Annualized Adjusted EBITDAre 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 EBITDAre for the following
periods:
Net Debt:
Average monthly balance for
the
Three months ended March
31,
2024
2023
Unsecured notes payable
$3,245,471
$3,269,763
Secured notes payable
330,165
515,086
Total debt
3,575,636
3,784,849
Less: Cash and cash equivalents
(66,007
)
(10,524
)
Net debt
$3,509,629
$3,774,325
Net Debt to Annualized Adjusted
EBITDAre:
Three months ended March
31,
2024
2023
Net debt
$3,509,629
$3,774,325
Annualized Adjusted EBITDAre
895,996
880,392
Net Debt to Annualized Adjusted
EBITDAre
3.9x
4.3x
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240502476911/en/
Kim Callahan, 713-354-2549
Camden Property (NYSE:CPT)
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