Camden Property Trust (NYSE:CPT) (the "Company") announced today
operating results for the three and nine months ended September 30,
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
and nine months ended September 30, 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 September
30,
Nine Months Ended September
30,
Per Diluted Share
2024
2023
2024
2023
EPS(1)
($0.04)
$0.44
$1.13
$1.66
FFO
$1.65
$1.73
$5.02
$5.06
Core FFO
$1.71
$1.73
$5.12
$5.09
Core AFFO
$1.48
$1.49
$4.42
$4.50
Three Months Ended
3Q24 Guidance
3Q24 Guidance
Per Diluted Share
September 30, 2024
Midpoint
Variance
EPS(1)
($0.04)
$0.33
($0.37)
FFO
$1.65
$1.65
$0.00
Core FFO
$1.71
$1.68
$0.03
(1) For the three and nine months ended
September 30, 2024, EPS included approximately $0.37 per share of
impairments associated with land development activities.
During the quarter, Camden decided not to move forward at the
present time with four predevelopment projects. These decisions
were made as part of a strategic review taking into consideration
the Company’s current portfolio concentrations and the overall
operating environments in those markets or submarkets. The Company
recognized a non-cash charge of approximately $41.0 million, or
$0.37 per diluted share, of impairment expenses related to land
development projects located in Los Angeles, CA, Houston, TX, and
Atlanta, GA. These reductions primarily reflect the carrying and
other costs incurred since acquiring those development sites.
Camden will also cease capitalizing interest and expenses
associated with these assets going forward.
Quarterly Growth
Sequential Growth
Year-To-Date Growth
Same Property Results
3Q24 vs. 3Q23
3Q24 vs. 2Q24
2024 vs. 2023
Revenues
0.6%
0.3%
1.5%
Expenses
1.8%
1.5%
2.4%
Net Operating Income ("NOI")
0.0%
(0.4)%
1.0%
Same Property Results
3Q24
3Q23
2Q24
Occupancy
95.5%
95.5%
95.3%
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)
October 2024*
October 2023
3Q24
3Q23
Signed New Lease Rates
(4.8)%
(3.7)%
(2.8)%
0.2%
Signed Renewal Rates
3.0%
4.1%
3.6%
5.0%
Signed Blended Lease Rates
(1.7)%
(0.9)%
0.1%
2.3%
New Lease and Renewal Data - Date
Effective (2)
October 2024*
October 2023
3Q24
3Q23
Effective New Lease Rates
(4.4)%
(2.6)%
(2.2)%
0.9%
Effective Renewal Rates
3.4%
4.7%
3.9%
5.9%
Effective Blended Lease Rates
(0.8)%
1.1%
0.9%
3.3%
*Preliminary data as of October 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 and Bad Debt
October 2024*
October 2023
3Q24
3Q23
Occupancy
95.3%
94.9%
95.5%
95.5%
Bad Debt
NA
0.9%
0.9%
1.4%
*Preliminary data as of October 30, 2024
Development Activity
During the quarter, leasing continued at Camden Woodmill Creek
in Spring, TX, Camden Durham in Durham, NC, and Camden Long Meadow
Farms in Richmond, TX.
Development Communities - Construction Completed and Project in
Lease-Up ($ in millions)
Total
Total
% Leased
Community Name
Location
Homes
Cost
as of 10/30/2024
Camden Woodmill Creek
Spring, TX
189
$71.6
79%
Development Communities - Construction Ongoing ($ in
millions)
Total
Total
% Leased
Community Name
Location
Homes
Estimated Cost
as of 10/30/2024
Camden Durham
Durham, NC
420
$145.0
74%
Camden Long Meadow Farms
Richmond, TX
188
75.0
46%
Camden Village District
Raleigh, NC
369
138.0
Camden South Charlotte
Charlotte, NC
420
163.0
Camden Blakeney
Charlotte, NC
349
154.0
Total
1,746
$675.0
Liquidity Analysis
As of September 30, 2024, Camden had nearly $1.1 billion of
liquidity comprised of approximately $31.2 million in cash and cash
equivalents, and over $1.0 billion of availability under its
unsecured credit facility. At quarter-end, the Company had
approximately $267.0 million left to fund under its existing
wholly-owned development pipeline.
During the quarter, Camden utilized cash on hand and its
unsecured revolving credit facility to repay its 3.68% $250.0
million senior unsecured notes payable which matured in September
2024. Also during the quarter, the Company extended the maturity
date of its $40 million unsecured floating rate term loan to
2026.
Hurricane Impact
During the quarter, Hurricane Beryl impacted several of our
multifamily communities in the Houston, TX area and we incurred
approximately $2.1 million of storm-related expenses, net of
anticipated insurance recoveries. Camden expects no material
charges related to either Hurricane Helene or Hurricane Milton.
Earnings Guidance
Camden updated its earnings guidance for 2024 based on its
current and expected views of the apartment market and general
economic conditions, and provided guidance for fourth quarter 2024
as detailed below. Expected EPS excludes gains, if any, from future
real estate transactions.
4Q24
2024
2024 Midpoint
Per Diluted Share
Range
Range
Current
Prior
Change
EPS
$0.34 - $0.38
$1.46 - $1.50
$1.48
$1.88
$(0.40)
FFO
$1.65 - $1.69
$6.67 - $6.71
$6.69
$6.72
$(0.03)
Core FFO(1)
$1.68 - $1.72
$6.79 - $6.83
$6.81
$6.79
$0.02
(1) The Company's 2024 core FFO guidance excludes approximately
$0.12 per share of non-core charges for casualty-related expenses,
severance, legal costs, loss on early retirement of debt, expensed
pursuit costs, and advocacy contributions.
2024
2024 Midpoint
Same Property Growth Guidance
Range
Current
Prior
Change
Revenues
1.10% - 1.50%
1.30%
1.50%
(0.20)%
Expenses
2.10% - 2.50%
2.30%
2.85%
(0.55)%
NOI
0.35% - 1.15%
0.75%
0.75%
0.00%
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, November 1, 2024 at 10:00 AM CT Domestic Dial-In Number:
(888) 317-6003; International Dial-In Number: (412) 317-6061;
Passcode: 6652140 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 172
properties containing 58,250 apartment homes across the United
States. Upon completion of 5 properties currently under
development, the Company’s portfolio will increase to 59,996
apartment homes in 177 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 September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
OPERATING
DATA
Property revenues (a)
$387,232
$390,778
$1,157,523
$1,154,440
Property expenses
Property operating and maintenance
95,940
91,011
275,110
264,038
Real estate taxes
47,420
49,094
145,684
148,345
Total property expenses
143,360
140,105
420,794
412,383
Non-property income
Fee and asset management
1,707
1,077
5,597
2,373
Interest and other income
1,076
64
4,442
557
Income/(loss) on deferred compensation
plans
8,248
(3,339
)
15,140
5,417
Total non-property income
11,031
(2,198
)
25,179
8,347
Other expenses
Property management
9,817
7,891
29,057
24,939
Fee and asset management
623
444
1,541
1,277
General and administrative
18,845
15,543
53,692
46,762
Interest
32,486
33,006
97,250
99,427
Depreciation and amortization
145,844
144,359
436,540
429,857
Expense/(benefit) on deferred compensation
plans
8,248
(3,339
)
15,140
5,417
Total other expenses
215,863
197,904
633,220
607,679
Impairment associated with land
development activities
(40,988
)
—
(40,988
)
—
Loss on early retirement of debt
—
—
(921
)
(2,513
)
Gain on sale of operating property
—
—
43,806
48,919
Income (loss) from continuing
operations before income taxes
(1,948
)
50,571
130,585
189,131
Income tax expense
(390
)
(752
)
(2,354
)
(2,753
)
Net income (loss)
(2,338
)
49,819
128,231
186,378
Less income allocated to non-controlling
interests
(1,866
)
(1,856
)
(5,629
)
(5,399
)
Net income (loss) attributable to
common shareholders
($4,204
)
$47,963
$122,602
$180,979
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
Net income (loss)
($2,338
)
$49,819
$128,231
$186,378
Other comprehensive income
(loss)
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
358
358
1,808
1,075
Comprehensive income (loss)
(1,980
)
50,177
130,124
187,453
Less income allocated to non-controlling
interests
(1,866
)
(1,856
)
(5,629
)
(5,399
)
Comprehensive income (loss)
attributable to common shareholders
($3,846
)
$48,321
$124,495
$182,054
PER SHARE
DATA
Total earnings/(loss) per common share -
basic
($0.04
)
$0.44
$1.13
$1.66
Total earnings/(loss) per common share -
diluted
(0.04
)
0.44
1.13
1.66
Weighted average number of common
shares outstanding:
Basic
108,426
108,683
108,513
108,638
Diluted
108,426
108,706
108,547
108,659
(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 September 30, 2024, we recognized $387.2
million of property revenue which consisted of approximately $344.9
million of rental revenue and approximately $42.3 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 $390.8 million recognized for
the three months ended September 30, 2023, made up of approximately
$347.7 million of rental revenue and approximately $43.1 million of
amounts received under contractual terms for other services
considered to be non-lease components within our lease contracts.
For the nine months ended September 30, 2024, we recognized
$1,157.5 million of property revenue which consisted of
approximately $1,031.0 million of rental revenue and approximately
$126.5 million of amounts received under contractual terms for
other services considered to be non-lease components within our
lease contracts. This compared to the $1,154.4 million of property
revenue recognized for the nine months ended September 30, 2023,
made up of approximately $1,028.0 million of rental revenue and
approximately $126.4 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 September 30, 2024 and 2023, respectively and was $31.9
million and $31.3 million for the nine months ended September 30
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 September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
FUNDS FROM
OPERATIONS
Net income (loss) attributable to
common shareholders
($4,204
)
$47,963
$122,602
$180,979
Real estate depreciation and
amortization
142,853
141,362
427,595
420,762
Income allocated to non-controlling
interests
1,866
1,856
5,629
5,399
Gain on sale of operating properties
—
—
(43,806
)
(48,919
)
Impairment associated with land
development activities
40,988
—
40,988
—
Funds from operations
$181,503
$191,181
$553,008
$558,221
Plus: Casualty-related expenses, net of
(recoveries)
2,833
(436
)
2,769
503
Plus: Severance
—
—
506
—
Plus: Legal costs and settlements, net of
recoveries
1,301
—
3,267
84
Plus: Loss on early retirement of debt
—
—
921
2,513
Plus: Expensed development & other
pursuit costs
833
—
1,493
471
Plus: Advocacy contributions
1,653
—
1,653
—
Less: Miscellaneous (income)/expense
—
—
—
(364
)
Core funds from operations
$188,123
$190,745
$563,617
$561,428
Less: recurring capitalized expenditures
(a)
(25,676
)
(26,554
)
(77,296
)
(65,167
)
Core adjusted funds from
operations
$162,447
$164,191
$486,321
$496,261
PER SHARE
DATA
Funds from operations - diluted
$1.65
$1.73
$5.02
$5.06
Core funds from operations - diluted
1.71
1.73
5.12
5.09
Core adjusted funds from operations -
diluted
1.48
1.49
4.42
4.50
Distributions declared per common
share
1.03
1.00
3.09
3.00
Weighted average number of common
shares outstanding:
FFO/Core FFO/Core AFFO - diluted
110,082
110,301
110,141
110,255
PROPERTY
DATA
Total operating properties (end of period)
(b)
172
172
172
172
Total operating apartment homes in
operating properties (end of period) (b)
58,250
58,961
58,250
58,961
Total operating apartment homes (weighted
average)
58,453
59,153
58,344
59,010
(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)
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
ASSETS
Real estate assets, at cost
Land
$1,718,185
$1,716,515
$1,706,983
$1,711,873
$1,732,804
Buildings and improvements
11,222,261
11,148,312
11,014,440
10,993,390
10,963,667
12,940,446
12,864,827
12,721,423
12,705,263
12,696,471
Accumulated depreciation
(4,725,152
)
(4,582,440
)
(4,439,710
)
(4,332,524
)
(4,254,388
)
Net operating real estate assets
8,215,294
8,282,387
8,281,713
8,372,739
8,442,083
Properties under development and land
418,209
439,758
477,481
486,864
499,761
Total real estate assets
8,633,503
8,722,145
8,759,194
8,859,603
8,941,844
Accounts receivable – affiliates
8,993
9,903
10,350
11,905
12,057
Other assets, net (a)
262,339
245,625
233,137
244,182
237,594
Cash and cash equivalents
31,234
93,932
92,693
259,686
14,600
Restricted cash
11,112
7,969
8,230
8,361
8,369
Total assets
$8,947,181
$9,079,574
$9,103,604
$9,383,737
$9,214,464
LIABILITIES AND EQUITY
Liabilities
Notes payable
Unsecured
$3,121,499
$3,222,569
$3,223,285
$3,385,309
$3,323,057
Secured
330,299
330,241
330,184
330,127
330,071
Accounts payable and accrued expenses
221,880
212,247
213,896
222,599
211,759
Accrued real estate taxes
131,693
90,702
46,612
96,517
128,794
Distributions payable
113,505
113,506
113,556
110,427
110,463
Other liabilities (b)
214,027
183,377
182,443
186,987
175,341
Total liabilities
4,132,903
4,152,642
4,109,976
4,331,966
4,279,485
Equity
Common shares of beneficial interest
1,158
1,157
1,157
1,156
1,156
Additional paid-in capital
5,927,477
5,924,608
5,919,851
5,914,868
5,911,627
Distributions in excess of net income
attributable to common shareholders
(826,725
)
(710,633
)
(641,663
)
(613,651
)
(727,117
)
Treasury shares
(359,989
)
(359,975
)
(356,880
)
(320,364
)
(320,702
)
Accumulated other comprehensive
income/(loss) (c)
641
283
(78
)
(1,252
)
(699
)
Total common equity
4,742,562
4,855,440
4,922,387
4,980,757
4,864,265
Non-controlling interests
71,716
71,492
71,241
71,014
70,714
Total equity
4,814,278
4,926,932
4,993,628
5,051,771
4,934,979
Total liabilities and equity
$8,947,181
$9,079,574
$9,103,604
$9,383,737
$9,214,464
(a) Includes net deferred charges of:
$3,244
$3,703
$4,286
$5,879
$6,481
(b) Includes deferred revenues of:
$830
$894
$958
$1,030
$1,167
(c) Represents the unrealized net loss and
unamortized prior service costs on post retirement obligations, and
unrealized net gain/(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 and losses from the sale
of certain real estate assets, gains and losses from change in
control, impairment write-downs of certain real estate assets and
investments in entities when the impairment is directly
attributable to decreases in the value of depreciable real estate
held by the entity, 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 and losses on dispositions of real estate,
impairment write-downs of certain real estate assets, 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. 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 September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Net income (loss) attributable to common
shareholders
($4,204
)
$47,963
$122,602
$180,979
Real estate depreciation and
amortization
142,853
141,362
427,595
420,762
Income allocated to non-controlling
interests
1,866
1,856
5,629
5,399
Gain on sale of operating properties
—
—
(43,806
)
(48,919
)
Impairment associated with land
development activities
40,988
—
40,988
—
Funds from operations
$181,503
$191,181
$553,008
$558,221
Plus: Casualty-related expenses, net of
(recoveries)
2,833
(436
)
2,769
503
Plus: Severance
—
—
506
—
Plus: Legal costs and settlements, net of
recoveries
1,301
—
3,267
84
Plus: Loss on early retirement of debt
—
—
921
2,513
Plus: Expensed development & other
pursuit costs
833
—
1,493
471
Plus: Advocacy contributions
1,653
—
1,653
—
Less: Miscellaneous (income)/expense
—
—
—
(364
)
Core funds from operations
$188,123
$190,745
$563,617
$561,428
Less: recurring capitalized
expenditures
(25,676
)
(26,554
)
(77,296
)
(65,167
)
Core adjusted funds from
operations
$162,447
$164,191
$486,321
$496,261
Weighted average number of common shares
outstanding:
EPS diluted
108,426
108,706
108,547
108,659
FFO/Core FFO/ Core AFFO diluted
110,082
110,301
110,141
110,255
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 September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Total Earnings Per Common Share -
Diluted
($0.04
)
$0.44
$1.13
$1.66
Real estate depreciation and
amortization
1.30
1.27
3.87
3.79
Income allocated to non-controlling
interests
0.02
0.02
0.05
0.05
Gain on sale of operating property
—
—
(0.40
)
(0.44
)
Impairment associated with land
development activities
0.37
—
0.37
—
FFO per common share - Diluted
$1.65
$1.73
$5.02
$5.06
Plus: Casualty-related expenses, net of
(recoveries)
0.02
—
0.03
—
Plus: Severance
—
—
—
—
Plus: Legal costs and settlements, net of
recoveries
0.01
—
0.03
—
Plus: Loss on early retirement of debt
—
—
0.01
0.03
Plus: Expensed development & other
pursuit costs
0.01
—
0.01
—
Plus: Advocacy contributions
0.02
—
0.02
—
Less: Miscellaneous (income)/expense
—
—
—
—
Core FFO per common share -
Diluted
$1.71
$1.73
$5.12
$5.09
Less: recurring capitalized
expenditures
(0.23
)
(0.24
)
(0.70
)
(0.59
)
Core AFFO per common share -
Diluted
$1.48
$1.49
$4.42
$4.50
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:
4Q24
Range
2024
Range
Low
High
Low
High
Expected earnings per common share -
diluted
$0.34
$0.38
$1.46
$1.50
Expected real estate depreciation and
amortization
1.29
1.29
5.17
5.17
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
)
Impairment associated with land
development activities
—
—
0.37
0.37
Expected FFO per share - diluted
$1.65
$1.69
$6.67
$6.71
Anticipated Adjustments to FFO
0.03
0.03
0.12
0.12
Expected Core FFO per share - diluted
$1.68
$1.72
$6.79
$6.83
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 September
30,
Nine months ended September
30,
2024
2023
2024
2023
Net income (loss)
($2,338
)
$49,819
$128,231
$186,378
Less: Fee and asset management income
(1,707
)
(1,077
)
(5,597
)
(2,373
)
Less: Interest and other income
(1,076
)
(64
)
(4,442
)
(557
)
Less: Income/(loss) on deferred
compensation plans
(8,248
)
3,339
(15,140
)
(5,417
)
Plus: Property management expense
9,817
7,891
29,057
24,939
Plus: Fee and asset management expense
623
444
1,541
1,277
Plus: General and administrative
expense
18,845
15,543
53,692
46,762
Plus: Interest expense
32,486
33,006
97,250
99,427
Plus: Depreciation and amortization
expense
145,844
144,359
436,540
429,857
Plus: Expense/(benefit) on deferred
compensation plans
8,248
(3,339
)
15,140
5,417
Plus: Impairment associated with land
development activities
40,988
—
40,988
—
Plus: Loss on early retirement of debt
—
—
921
2,513
Less: Gain on sale of operating
property
—
—
(43,806
)
(48,919
)
Plus: Income tax expense
390
752
2,354
2,753
NOI
$243,872
$250,673
$736,729
$742,057
"Same Property" Communities
$234,590
$234,648
$704,705
$697,476
Non-"Same Property" Communities
9,053
8,157
27,131
21,451
Development and Lease-Up Communities
1,474
(12
)
1,925
(19
)
Disposition/Other
(1,245
)
7,880
2,968
23,149
NOI
$243,872
$250,673
$736,729
$742,057
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 from the sale of certain real estate assets, including
gains/losses on change of control, plus impairment write‐downs of
certain real estate assets and investments in entities when the
impairment is directly attributable to decreases in the value of
depreciable real estate held by the entity, and adjustments to
reflect the Company’s share of EBITDAre of unconsolidated joint
ventures.
Adjusted EBITDAre represents EBITDAre as further adjusted for
non-core items. 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, and impairment write-downs of
certain real estate assets. Annualized Adjusted EBITDAre is
Adjusted EBITDAre as reported for the period multiplied by 4 for
quarter results or 1.33 for 9 month results. A reconciliation of
net income to EBITDAre and adjusted EBITDAre is provided below:
Three months ended September
30,
Nine months ended September
30,
2024
2023
2024
2023
Net income (loss)
($2,338
)
$49,819
$128,231
$186,378
Plus: Interest expense
32,486
33,006
97,250
99,427
Plus: Depreciation and amortization
expense
145,844
144,359
436,540
429,857
Plus: Income tax expense
390
752
2,354
2,753
Less: Gain on sale of operating
property
—
—
(43,806
)
(48,919
)
Plus: Impairment associated with land
development activities
40,988
—
40,988
—
EBITDAre
$217,370
$227,936
$661,557
$669,496
Plus: Casualty-related expenses, net of
(recoveries)
2,833
(436
)
2,769
503
Plus: Severance
—
—
506
—
Plus: Legal costs and settlements, net of
recoveries
1,301
—
3,267
84
Plus: Loss on early retirement of debt
—
—
921
2,513
Plus: Expensed development & other
pursuit costs
833
—
1,493
471
Plus: Advocacy contributions
1,653
—
1,653
—
Less: Miscellaneous (income)/expense
—
—
—
(364
)
Adjusted EBITDAre
$223,990
$227,500
$672,166
$672,703
Annualized Adjusted EBITDAre
$895,960
$910,000
$896,221
$896,937
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
Average monthly balance for
the
Three months ended September
30,
Nine months ended September
30,
2024
2023
2024
2023
Unsecured notes payable
$3,193,365
$3,374,176
$3,219,724
$3,336,040
Secured notes payable
330,280
330,052
330,222
412,290
Total debt
3,523,645
3,704,228
3,549,946
3,748,330
Less: Cash and cash equivalents
(43,414
)
(8,338
)
(54,702
)
(8,546
)
Net debt
$3,480,231
$3,695,890
$3,495,244
$3,739,784
Net Debt to Annualized Adjusted
EBITDAre:
Three months ended September
30,
Nine months ended September
30,
2024
2023
2024
2023
Net debt
$3,480,231
$3,695,890
$3,495,244
$3,739,784
Annualized Adjusted EBITDAre
895,960
910,000
896,221
896,937
Net Debt to Annualized Adjusted
EBITDAre
3.9x
4.1x
3.9x
4.2x
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241031665810/en/
Kim Callahan, 713-354-2549
Camden Property (NYSE:CPT)
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