Camden Property Trust (NYSE:CPT) (the "Company") announced today
operating results for the three and six months ended June 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
six months ended June 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 June 30,
Six Months Ended June 30,
Per Diluted Share
2024
2023
2024
2023
EPS
$
0.40
$
0.84
$
1.17
$
1.22
FFO
$
1.71
$
1.67
$
3.37
$
3.33
Core FFO
$
1.71
$
1.70
$
3.41
$
3.36
Core AFFO
$
1.44
$
1.51
$
2.94
$
3.01
Three Months Ended
2Q24 Guidance
2Q24 Guidance
Per Diluted Share
June 30, 2024
Midpoint
Variance
EPS
$
0.40
$
0.36
$
0.04
FFO
$
1.71
$
1.66
$
0.05
Core FFO
$
1.71
$
1.67
$
0.04
Quarterly Growth
Sequential Growth
Year-To-Date Growth
Same Property Results
2Q24 vs. 2Q23
2Q24 vs. 1Q24
2024 vs. 2023
Revenues
1.4
%
0.5
%
2.0
%
Expenses
2.5
%
0.8
%
2.7
%
Net Operating Income ("NOI")
0.9
%
0.4
%
1.6
%
Same Property Results
2Q24
2Q23
1Q24
Occupancy
95.3
%
95.5
%
95.0
%
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)
July 2024*
July 2023
2Q24
2Q23
Signed New Lease Rates
(1.6
)%
1.6
%
(1.8
)%
2.4
%
Signed Renewal Rates
4.0
%
5.2
%
3.7
%
6.0
%
Signed Blended Lease Rates
0.9
%
3.3
%
0.8
%
4.0
%
New Lease and Renewal Data - Date
Effective (2)
July 2024*
July 2023
2Q24
2Q23
Effective New Lease Rates
(1.5
)%
2.0
%
(2.6
)%
2.3
%
Effective Renewal Rates
3.7
%
6.4
%
3.3
%
6.4
%
Effective Blended Lease Rates
1.2
%
4.1
%
0.0
%
4.0
%
*Preliminary data as of July 31, 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
July 2024*
July 2023
2Q24
2Q23
Occupancy
95.6
%
95.6
%
95.3
%
95.5
%
Bad Debt
NA
1.7
%
0.8
%
1.5
%
Annualized Gross Turnover
59
%
65
%
53
%
54
%
Annualized Net Turnover
47
%
53
%
42
%
45
%
*Preliminary data as of July 31, 2024
Development Activity
During the quarter, construction was completed at Camden
Woodmill Creek in The Woodlands, TX. Construction commenced at
Camden South Charlotte in Charlotte, NC and Camden Blakeney in
Charlotte, NC. Additionally, leasing continued at 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 7/31/2024
Camden Woodmill Creek
The Woodlands, TX
189
$
70.9
65
%
Development Communities - Construction
Ongoing ($ in millions)
Total
Total
% Leased
Community Name
Location
Homes
Estimated Cost
as of 7/31/2024
Camden Durham
Durham, NC
420
$
145.0
69
%
Camden Long Meadow Farms
Richmond, TX
188
75.0
32
%
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
Share Repurchase
During the quarter, 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 June 30, 2024, Camden had nearly $1.3 billion of liquidity
comprised of approximately $93.9 million in cash and cash
equivalents, and $1.2 billion of availability under its unsecured
credit facility. At quarter-end, the Company had approximately
$297.9 million left to fund under its existing wholly-owned
development pipeline.
Hurricane Impact
Subsequent to the quarter-end, Hurricane Beryl impacted several
of our multifamily communities in the Houston, TX area. We are
currently in the preliminary stage of assessing the effect of this
event and expect the storm-related expenses for this incident to be
in the range of approximately $2.0 million to $3.0 million, net of
insurance proceeds. These estimates are preliminary and may change
as we receive additional information.
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 third quarter 2024
as detailed below. Expected EPS excludes gains, if any, from future
real estate transactions.
3Q24
2024
2024 Midpoint
Per Diluted Share
Range
Range
Current
Prior
Change
EPS
$0.31 - $0.35
$1.83 - $1.93
$
1.88
$
1.86
$
0.02
FFO
$1.63 - $1.67
$6.67 - $6.77
$
6.72
$
6.69
$
0.03
Core FFO(1)
$1.66 - $1.70
$6.74 - $6.84
$
6.79
$
6.74
$
0.05
(1) The Company's 2024 core FFO guidance
includes approximately $0.07 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
1.00% - 2.00%
1.50
%
1.50
%
0.00
%
Expenses
2.35% - 3.35%
2.85
%
3.25
%
(0.40
)%
NOI
(0.25%) - 1.75%
0.75
%
0.50
%
0.25
%
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, August 2, 2024 at 10:00 AM CT Domestic Dial-In Number:
(888) 317-6003; International Dial-In Number: (412) 317-6061;
Passcode: 5174172 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 June
30,
Six Months Ended June
30,
2024
2023
2024
2023
OPERATING
DATA
Property revenues (a)
$
387,150
$
385,499
$
770,291
$
763,662
Property expenses
Property operating and maintenance
90,126
87,742
179,170
173,027
Real estate taxes
48,763
49,855
98,264
99,251
Total property expenses
138,889
137,597
277,434
272,278
Non-property income
Fee and asset management
2,606
718
3,890
1,296
Interest and other income
1,598
431
3,366
493
Income on deferred compensation plans
1,073
2,844
6,892
8,756
Total non-property income
5,277
3,993
14,148
10,545
Other expenses
Property management
9,846
8,751
19,240
17,048
Fee and asset management
475
420
918
833
General and administrative
18,154
15,863
34,847
31,219
Interest
32,227
33,578
64,764
66,421
Depreciation and amortization
145,894
143,054
290,696
285,498
Expense on deferred compensation plans
1,073
2,844
6,892
8,756
Total other expenses
207,669
204,510
417,357
409,775
Loss on early retirement of debt
—
(2,513
)
(921
)
(2,513
)
Gain on sale of operating property
—
48,919
43,806
48,919
Income from continuing operations
before income taxes
45,869
93,791
132,533
138,560
Income tax expense
(1,059
)
(851
)
(1,964
)
(2,001
)
Net income
44,810
92,940
130,569
136,559
Less income allocated to non-controlling
interests
(1,893
)
(1,841
)
(3,763
)
(3,543
)
Net income attributable to common
shareholders
$
42,917
$
91,099
$
126,806
$
133,016
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
Net income
$
44,810
$
92,940
$
130,569
$
136,559
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
361
358
1,450
717
Comprehensive income
45,171
93,298
132,104
137,276
Less income allocated to non-controlling
interests
(1,893
)
(1,841
)
(3,763
)
(3,543
)
Comprehensive income attributable to
common shareholders
$
43,278
$
91,457
$
128,341
$
133,733
PER SHARE
DATA
Total earnings per common share -
basic
$
0.40
$
0.84
$
1.17
$
1.22
Total earnings per common share -
diluted
0.40
0.84
1.17
1.22
Weighted average number of common
shares outstanding:
Basic
108,406
108,663
108,556
108,616
Diluted
108,424
109,392
108,577
108,636
(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 June 30, 2024, we
recognized $387.2 million of property revenue which consisted of
approximately $344.6 million of rental revenue and approximately
$42.6 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 $385.5 million
recognized for the three months ended June 30, 2023, made up of
approximately $343.1 million of rental revenue and approximately
$42.4 million of amounts received under contractual terms for other
services considered to be non-lease components within our lease
contracts. For the six months ended June 30, 2024, we recognized
$770.3 million of property revenue which consisted of approximately
$686.2 million of rental revenue and approximately $84.1 million of
amounts received under contractual terms for other services
considered to be non-lease components within our lease contracts.
This compared to the $763.7 million of property revenue recognized
for the six months ended June 30, 2023, made up of approximately
$680.3 million of rental revenue and approximately $83.4 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 $10.5 million
and $10.3 million for the three months ended June 30, 2024 and
2023, respectively and was $21.2 million and $20.8 million for the
six months ended June 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 June
30,
Six Months Ended June
30,
2024
2023
2024
2023
FUNDS FROM OPERATIONS
Net income attributable to common
shareholders
$
42,917
$
91,099
$
126,806
$
133,016
Real estate depreciation and
amortization
142,895
140,013
284,742
279,400
Income allocated to non-controlling
interests
1,893
1,841
3,763
3,543
Gain on sale of operating properties
—
(48,919
)
(43,806
)
(48,919
)
Funds from operations
$
187,705
$
184,034
$
371,505
$
367,040
Plus: Casualty-related expenses, net of
(recoveries)
(1,587
)
981
(64
)
939
Plus: Severance
—
—
506
—
Plus: Legal costs and settlements, net of
recoveries
1,114
—
1,966
84
Plus: Loss on early retirement of debt
—
2,513
921
2,513
Plus: Expensed development & other
pursuit costs
660
471
660
471
Less: Miscellaneous (income)/expense
—
(364
)
—
(364
)
Core funds from operations
$
187,892
$
187,635
$
375,494
$
370,683
Less: recurring capitalized expenditures
(a)
(29,595
)
(21,034
)
(51,620
)
(38,613
)
Core adjusted funds from
operations
$
158,297
$
166,601
$
323,874
$
332,070
PER SHARE DATA
Funds from operations - diluted
$
1.71
$
1.67
$
3.37
$
3.33
Core funds from operations - diluted
1.71
1.70
3.41
3.36
Core adjusted funds from operations -
diluted
1.44
1.51
2.94
3.01
Distributions declared per common
share
1.03
1.00
2.06
2.00
Weighted average number of common
shares outstanding:
FFO/Core FFO/Core AFFO - diluted
110,018
110,262
110,171
110,232
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)
58,244
59,039
58,290
58,938
(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, 2024
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
ASSETS
Real estate assets, at cost
Land
$
1,716,515
$
1,706,983
$
1,711,873
$
1,732,804
$
1,727,182
Buildings and improvements
11,148,312
11,014,440
10,993,390
10,963,667
10,848,837
12,864,827
12,721,423
12,705,263
12,696,471
12,576,019
Accumulated depreciation
(4,582,440
)
(4,439,710
)
(4,332,524
)
(4,254,388
)
(4,113,095
)
Net operating real estate assets
8,282,387
8,281,713
8,372,739
8,442,083
8,462,924
Properties under development, including
land
439,758
477,481
486,864
499,761
516,543
Total real estate assets
8,722,145
8,759,194
8,859,603
8,941,844
8,979,467
Accounts receivable – affiliates
9,903
10,350
11,905
12,057
12,121
Other assets, net (a)
245,625
233,137
244,182
237,594
239,958
Cash and cash equivalents
93,932
92,693
259,686
14,600
20,326
Restricted cash
7,969
8,230
8,361
8,369
8,531
Total assets
$
9,079,574
$
9,103,604
$
9,383,737
$
9,214,464
$
9,260,403
LIABILITIES AND EQUITY
Liabilities
Notes payable
Unsecured
$
3,222,569
$
3,223,285
$
3,385,309
$
3,323,057
$
3,352,415
Secured
330,241
330,184
330,127
330,071
330,015
Accounts payable and accrued expenses
212,247
213,896
222,599
211,759
192,613
Accrued real estate taxes
90,702
46,612
96,517
128,794
93,642
Distributions payable
113,506
113,556
110,427
110,463
110,465
Other liabilities (b)
183,377
182,443
186,987
175,341
189,711
Total liabilities
4,152,642
4,109,976
4,331,966
4,279,485
4,268,861
Equity
Common shares of beneficial interest
1,157
1,157
1,156
1,156
1,156
Additional paid-in capital
5,924,608
5,919,851
5,914,868
5,911,627
5,907,828
Distributions in excess of net income
attributable to common shareholders
(710,633
)
(641,663
)
(613,651
)
(727,117
)
(666,218
)
Treasury shares
(359,975
)
(356,880
)
(320,364
)
(320,702
)
(320,675
)
Accumulated other comprehensive
income/(loss) (c)
283
(78
)
(1,252
)
(699
)
(1,057
)
Total common equity
4,855,440
4,922,387
4,980,757
4,864,265
4,921,034
Non-controlling interests
71,492
71,241
71,014
70,714
70,508
Total equity
4,926,932
4,993,628
5,051,771
4,934,979
4,991,542
Total liabilities and equity
$
9,079,574
$
9,103,604
$
9,383,737
$
9,214,464
$
9,260,403
(a) Includes net deferred charges of:
$
3,703
$
4,286
$
5,879
$
6,481
$
7,033
(b) Includes deferred revenues of:
$
894
$
958
$
1,030
$
1,167
$
1,239
(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 (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 June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net income attributable to common
shareholders
$
42,917
$
91,099
$
126,806
$
133,016
Real estate depreciation and
amortization
142,895
140,013
284,742
279,400
Income allocated to non-controlling
interests
1,893
1,841
3,763
3,543
Gain on sale of operating properties
—
(48,919
)
(43,806
)
(48,919
)
Funds from operations
$
187,705
$
184,034
$
371,505
$
367,040
Plus: Casualty-related expenses, net of
(recoveries)
(1,587
)
981
(64
)
939
Plus: Severance
—
—
506
—
Plus: Legal costs and settlements, net of
recoveries
1,114
—
1,966
84
Plus: Loss on early retirement of debt
—
2,513
921
2,513
Plus: Expensed development & other
pursuit costs
660
471
660
471
Less: Miscellaneous (income)/expense
—
(364
)
—
(364
)
Core funds from operations
$
187,892
$
187,635
$
375,494
$
370,683
Less: recurring capitalized
expenditures
(29,595
)
(21,034
)
(51,620
)
(38,613
)
Core adjusted funds from
operations
$
158,297
$
166,601
$
323,874
$
332,070
Weighted average number of common shares
outstanding:
EPS diluted
108,424
109,392
108,577
108,636
FFO/Core FFO/ Core AFFO diluted
110,018
110,262
110,171
110,232
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 June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Total Earnings Per Common Share -
Diluted
$
0.40
$
0.84
$
1.17
$
1.22
Real estate depreciation and
amortization
1.29
1.26
2.57
2.52
Income allocated to non-controlling
interests
0.02
0.01
0.03
0.03
Gain on sale of operating property
—
(0.44
)
(0.40
)
(0.44
)
FFO per common share - Diluted
$
1.71
$
1.67
$
3.37
$
3.33
Plus: Casualty-related expenses, net of
(recoveries)
(0.02
)
0.01
—
0.01
Plus: Severance
—
—
—
—
Plus: Legal costs and settlements, net of
recoveries
0.01
—
0.02
—
Plus: Loss on early retirement of debt
—
0.02
0.01
0.02
Plus: Expensed development & other
pursuit costs
0.01
—
0.01
—
Less: Miscellaneous (income)/expense
—
—
—
—
Core FFO per common share -
Diluted
$
1.71
$
1.70
$
3.41
$
3.36
Less: recurring capitalized
expenditures
(0.27
)
(0.19
)
(0.47
)
(0.35
)
Core AFFO per common share -
Diluted
$
1.44
$
1.51
$
2.94
$
3.01
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:
3Q24
Range
2024
Range
Low
High
Low
High
Expected earnings per common share -
diluted
$
0.31
$
0.35
$
1.83
$
1.93
Expected real estate depreciation and
amortization
1.30
1.30
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
)
Expected FFO per share - diluted
$
1.63
$
1.67
$
6.67
$
6.77
Anticipated Adjustments to FFO
0.03
0.03
0.07
0.07
Expected Core FFO per share - diluted
$
1.66
$
1.70
$
6.74
$
6.84
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 June
30,
Six months ended June
30,
2024
2023
2024
2023
Net income
$
44,810
$
92,940
$
130,569
$
136,559
Less: Fee and asset management income
(2,606
)
(718
)
(3,890
)
(1,296
)
Less: Interest and other income
(1,598
)
(431
)
(3,366
)
(493
)
Less: Income on deferred compensation
plans
(1,073
)
(2,844
)
(6,892
)
(8,756
)
Plus: Property management expense
9,846
8,751
19,240
17,048
Plus: Fee and asset management expense
475
420
918
833
Plus: General and administrative
expense
18,154
15,863
34,847
31,219
Plus: Interest expense
32,227
33,578
64,764
66,421
Plus: Depreciation and amortization
expense
145,894
143,054
290,696
285,498
Plus: Expense on deferred compensation
plans
1,073
2,844
6,892
8,756
Plus: Loss on early retirement of debt
—
2,513
921
2,513
Less: Gain on sale of operating
property
—
(48,919
)
(43,806
)
(48,919
)
Plus: Income tax expense
1,059
851
1,964
2,001
NOI
$
248,261
$
247,902
$
492,857
$
491,384
"Same Property" Communities
$
235,481
$
233,450
$
470,115
$
462,828
Non-"Same Property" Communities
8,935
7,124
18,078
13,294
Development and Lease-Up Communities
449
(4
)
451
(7
)
Disposition/Other
3,396
7,332
4,213
15,269
NOI
$
248,261
$
247,902
$
492,857
$
491,384
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 or 2 for 6 month results. A reconciliation of net
income to EBITDAre and adjusted EBITDAre is provided below:
Three months ended June
30,
Six months ended June
30,
2024
2023
2024
2023
Net income
$
44,810
$
92,940
$
130,569
$
136,559
Plus: Interest expense
32,227
33,578
64,764
66,421
Plus: Depreciation and amortization
expense
145,894
143,054
290,696
285,498
Plus: Income tax expense
1,059
851
1,964
2,001
Less: Gain on sale of operating
property
—
(48,919
)
(43,806
)
(48,919
)
EBITDAre
$
223,990
$
221,504
$
444,187
$
441,560
Plus: Casualty-related expenses, net of
(recoveries)
(1,587
)
981
(64
)
939
Plus: Severance
—
—
506
—
Plus: Legal costs and settlements, net of
recoveries
1,114
—
1,966
84
Plus: Loss on early retirement of debt
—
2,513
921
2,513
Plus: Expensed development & other
pursuit costs
660
471
660
471
Less: Miscellaneous (income)/expense
—
(364
)
—
(364
)
Adjusted EBITDAre
$
224,177
$
225,105
$
448,176
$
445,203
Annualized Adjusted EBITDAre
$
896,708
$
900,420
$
896,352
$
890,406
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 June
30,
Six months ended June
30,
2024
2023
2024
2023
Unsecured notes payable
$
3,220,334
$
3,364,180
$
3,232,903
$
3,316,971
Secured notes payable
330,222
391,732
330,194
453,409
Total debt
3,550,556
3,755,912
3,563,097
3,770,380
Less: Cash and cash equivalents
(54,686
)
(6,775
)
(60,347
)
(8,650
)
Net debt
$
3,495,870
$
3,749,137
$
3,502,750
$
3,761,730
Net Debt to
Annualized Adjusted EBITDAre:
Three months ended June
30,
Six months ended June
30,
2024
2023
2024
2023
Net debt
$
3,495,870
$
3,749,137
$
3,502,750
$
3,761,730
Annualized Adjusted EBITDAre
896,708
900,420
896,352
890,406
Net Debt to Annualized Adjusted
EBITDAre
3.9x
4.2x
3.9x
4.2x
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240801098805/en/
Kim Callahan, 713-354-2549
Camden Property (NYSE:CPT)
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Camden Property (NYSE:CPT)
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