REIT Earnings Press Releases

Camden Property Trust Announces Second Quarter 2021 Operating Results

HOUSTON--(BUSINESS WIRE)-- Camden Property Trust (NYSE:CPT) (the "Company") announced today operating results for the three and six months ended June 30, 2021. 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, 2021 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

2021

2020

2021

2020

EPS

$0.30

$0.17

$0.61

$0.60

FFO

$1.28

$1.09

$2.52

$2.44

AFFO

$1.10

$0.91

$2.21

$2.11

 

Quarterly Growth

Sequential Growth

Year-To-Date Growth

Same Property Results

2Q21 vs. 2Q20

2Q21 vs. 1Q21

2021 vs. 2020

Revenues

4.1%

2.3%

1.9%

Expenses

6.2%

1.7%

5.8%

Net Operating Income ("NOI")

3.0%

2.7%

(0.3)%

Same Property Results

2Q21

2Q20

1Q21

Occupancy

96.9%

95.1%

96.0%

For 2021, the Company defines same property communities as communities owned and stabilized since January 1, 2020, 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.

July Collections

Same Property Scheduled Rents*

July 2021

July 2020

2Q21

2Q20

Collected

97.9%

98.7%

98.7%

97.3%

Deferred/Payment Plan Arranged

—%

—%

—%

1.1%

Delinquent

2.1%

1.3%

1.3%

1.6%

*Rent is recognized as earned. The Company evaluates collectability on an ongoing basis and any accounts considered uncollectable are recorded against property revenues.

Operating Statistics - Same Property Portfolio

New Lease and Renewal Data - Date Signed (1) (2)

July 2021*

July 2020

2Q21(2)

2Q20(2)

New Lease Rates

18.7%

(2.2)%

9.3%

(2.8)%

Renewal Rates

10.5%

1.1%

6.7%

0.3%

Blended Rates

14.6%

(0.7)%

8.0%

(1.1)%

 

 

 

 

 

New Leases

1,530

1,839

2,099

1,834

Renewals

1,606

1,790

2,173

2,169

Total Leases

3,136

3,629

4,272

4,003

New Lease and Renewal Data - Date Effective (3) (4)

July 2021*

July 2020

2Q21(4)

2Q20(4)

New Lease Rates

13.3%

(2.5)%

5.4%

(2.3)%

Renewal Rates

6.4%

0.1%

4.0%

2.3%

Blended Rates

9.8%

(1.2)%

4.7%

0.2%

 

 

 

 

 

New Leases

2,296

2,286

1,880

1,571

Renewals

2,378

2,502

1,765

1,977

Total Leases

4,674

4,788

3,645

3,548

*Data as of July 26, 2021

(1)

Average change in same property new lease and renewal rates vs. expiring lease rates when signed.

(2)

Data represents average monthly leases signed during the period.

(3)

Average change in same property new lease and renewal rates vs. expiring lease rates when effective.

(4)

Data represents average monthly leases effective during the period.

Occupancy and Turnover Data

July 2021*

July 2020

2Q21

2Q20

Occupancy

97.1%

95.2%

96.9%

95.1%

Annualized Gross Turnover

56%

61%

54%

54%

Annualized Net Turnover

47%

48%

45%

44%

 

*Data as of July 26, 2021

 

Development Activity

During the quarter, lease-up was completed at Camden RiNo in Denver, CO and Camden Cypress Creek II (JV) in Cypress, TX, and leasing began at Camden Hillcrest in San Diego, CA.

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

 

 

Total

Total

% Leased

Community Name

Location

Homes

Cost

as of 7/25/2021

Camden Downtown I

Houston, TX

271

$131.6

92

%

Development Communities - Construction Ongoing ($ in millions)

 

 

Total

Total

% Leased

Community Name

Location

Homes

Estimated Cost

as of 7/25/2021

Camden North End II

Phoenix, AZ

343

 

$87.0

76

%

Camden Lake Eola

Orlando, FL

360

 

125.0

57

%

Camden Buckhead

Atlanta, GA

366

 

160.0

43

%

Camden Hillcrest

San Diego, CA

132

 

95.0

16

%

Camden Atlantic

Plantation, FL

269

 

100.0

 

Camden Tempe II

Tempe, AZ

397

 

115.0

 

Camden NoDa

Charlotte, NC

387

 

105.0

 

Camden Durham

Durham, NC

354

 

120.0

 

Total

 

2,608

 

$907.0

 

Acquisition Activity

During the quarter, the Company acquired Camden Franklin Park, a 328-home apartment community located in Franklin, TN, for approximately $105.3 million, and acquired Camden Music Row, a 430-home apartment community located in Nashville, TN, for approximately $186.3 million.

In June 2021, Camden acquired a 14.6-acre land parcel in The Woodlands, TX for approximately $9.3 million, and a 0.2-acre land parcel in St. Petersburg, FL for approximately $2.1 million for future development purposes.

Equity Issuance

During the three and six months ended June 30, 2021, the Company issued approximately 2.9 million common shares through its at-the-market (“ATM”) share offering program at an average price of $126.64 per share, for total net consideration of approximately $358.8 million.

Liquidity Analysis

As of June 30, 2021, Camden had approximately $1.3 billion of liquidity comprised of approximately $375 million in cash and cash equivalents and no amounts outstanding on its $900 million unsecured credit facility. The Company has no scheduled debt maturities until 2022, and at quarter-end had $302 million left to fund under its existing wholly-owned development pipeline. As of June 30, 2021, Camden had outstanding letters of credit totaling approximately $12 million, which reduced the availability under its unsecured credit facility to $888 million.

Earnings Guidance

Camden updated its earnings guidance for 2021 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for third quarter 2021 as detailed below.

 

3Q21

2021

2021 Midpoint

Per Diluted Share

Range

Range

Current

Prior

Change

EPS

$0.22 - $0.28

$1.09 - $1.29

$1.19

$0.99

$0.20

FFO

$1.30 - $1.36

$5.17 - $5.37

$5.27

$5.09

$0.18

 

 

 

 

 

 

 

 

2021

2021 Midpoint

Same Property Growth

 

Range

Current

Prior

Change

Revenues

 

3.25% - 4.25%

3.75%

1.60%

2.15%

Expenses

 

3.35% - 4.15%

3.75%

3.90%

(0.15)%

NOI

 

2.75% - 4.75%

3.75%

0.25%

3.50%

Camden intends to update its earnings guidance to the market on a quarterly basis. Additional information on the Company’s 2021 financial outlook and a reconciliation of expected EPS to expected FFO are included in the financial tables accompanying this press release.

Conference Call

Friday, July 30, 2021 at 10:00 AM CT
Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061
Passcode: 4745317
Webcast: https://services.choruscall.com/mediaframe/webcast.html?webcastid=Y0Uocwtj

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 400 Company, is a real estate company primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns interests in and operates 169 properties containing 57,611 apartment homes across the United States. Upon completion of 8 properties currently under development, the Company’s portfolio will increase to 60,219 apartment homes in 177 properties. Camden has been recognized as one of the 100 Best Companies to Work For® by FORTUNE magazine for 14 consecutive years, most recently ranking #8.

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,

 

2021

2020

 

2021

2020

OPERATING DATA

 

 

 

 

 

 

 

 

 

 

 

Property revenues (a)

$276,523

 

$250,683

 

 

$544,091

 

$516,562

 

 

 

 

 

 

 

Property expenses

 

 

 

 

 

Property operating and maintenance

65,544

 

64,641

 

 

129,023

 

124,597

 

Real estate taxes

37,427

 

35,040

 

 

74,880

 

69,220

 

Total property expenses

102,971

 

99,681

 

 

203,903

 

193,817

 

 

 

 

 

 

 

Non-property income

 

 

 

 

 

Fee and asset management

2,263

 

2,380

 

 

4,469

 

4,907

 

Interest and other income

257

 

325

 

 

589

 

654

 

Income/(loss) on deferred compensation plans

6,400

 

11,435

 

 

10,026

 

(3,425

)

Total non-property income

8,920

 

14,140

 

 

15,084

 

2,136

 

 

 

 

 

 

 

Other expenses

 

 

 

 

 

Property management

6,436

 

5,939

 

 

12,560

 

12,466

 

Fee and asset management

1,019

 

820

 

 

2,151

 

1,663

 

General and administrative

15,246

 

14,391

 

 

29,468

 

27,624

 

Interest

24,084

 

23,482

 

 

47,728

 

43,189

 

Depreciation and amortization

99,586

 

92,803

 

 

192,727

 

184,662

 

Expense/(benefit) on deferred compensation plans

6,400

 

11,435

 

 

10,026

 

(3,425

)

Total other expenses

152,771

 

148,870

 

 

294,660

 

266,179

 

 

 

 

 

 

 

Gain on sale of land

 

 

 

 

382

 

Equity in income of joint ventures

2,198

 

1,633

 

 

4,112

 

3,755

 

Income from continuing operations before income taxes

31,899

 

17,905

 

 

64,724

 

62,839

 

Income tax expense

(460

)

(394

)

 

(812

)

(861

)

Net income

31,439

 

17,511

 

 

63,912

 

61,978

 

Less income allocated to non-controlling interests

(1,260

)

(1,034

)

 

(2,386

)

(2,217

)

Net income attributable to common shareholders (b)

$30,179

 

$16,477

 

 

$61,526

 

$59,761

 

 

 

 

 

 

 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

 

 

 

 

Net income

$31,439

 

$17,511

 

 

$63,912

 

$61,978

 

Other comprehensive income

 

 

 

 

 

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

372

 

366

 

 

745

 

732

 

Comprehensive income

31,811

 

17,877

 

 

64,657

 

62,710

 

Less income allocated to non-controlling interests

(1,260

)

(1,034

)

 

(2,386

)

(2,217

)

Comprehensive income attributable to common shareholders

$30,551

 

$16,843

 

 

$62,271

 

$60,493

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

Total earnings per common share - basic

$0.30

 

$0.17

 

 

$0.61

 

$0.60

 

Total earnings per common share - diluted

0.30

 

0.17

 

 

0.61

 

0.60

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

Basic

100,701

 

99,399

 

 

100,127

 

99,348

 

Diluted

100,767

 

99,408

 

 

100,197

 

99,394

 

(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, 2021, we recognized $276.5 million of property revenue which consisted of approximately $242.9 million of rental revenue and approximately $33.6 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 $250.7 million recognized for the three months ended June 30, 2020, made up of approximately $221.4 million of rental revenue, net of $9.1 million related to the Resident Relief Funds, and approximately $29.3 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, 2021, we recognized $544.1 million of property revenue which consisted of approximately $478.6 million of rental revenue and approximately $65.5 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. This compares to $516.6 million of property revenue recognized for the six months ended June 30, 2020, made up of approximately $458.0 million of rental revenue, net of $9.1 million related to the Resident Relief Funds, and approximately $58.6 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 $7.6 million and $7.1 million for the three months ended June 30, 2021 and 2020, respectively, and was $15.3 million and $14.0 million for the six months ended June 30, 2021 and 2020, respectively.

 

 

(b)

Net income attributable to common shareholders for the three and six months ended June 30, 2020 was negatively impacted by an approximate $14.4 million Pandemic Related Impact.  Please refer to page 27 of the supplement, footnote (a), for additional detail on the breakdown of the Pandemic Related Impact.

 

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,

 

2021

2020

 

2021

2020

FUNDS FROM OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to common shareholders (a)

$30,179

 

$16,477

 

 

$61,526

 

$59,761

 

Real estate depreciation and amortization

97,122

 

90,500

 

 

187,829

 

180,011

 

Adjustments for unconsolidated joint ventures

2,630

 

2,287

 

 

5,229

 

4,529

 

Income allocated to non-controlling interests

1,260

 

1,103

 

 

2,386

 

2,385

 

Funds from operations

$131,191

 

$110,367

 

 

$256,970

 

$246,686

 

 

 

 

 

 

 

Less: recurring capitalized expenditures (b)

(18,808

)

(18,782

)

 

(31,488

)

(33,607

)

 

 

 

 

 

 

Adjusted funds from operations

$112,383

 

$91,585

 

 

$225,482

 

$213,079

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

Funds from operations - diluted

$1.28

 

$1.09

 

 

$2.52

 

$2.44

 

Adjusted funds from operations - diluted

1.10

 

0.91

 

 

2.21

 

2.11

 

Distributions declared per common share

0.83

 

0.83

 

 

1.66

 

1.66

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

FFO/AFFO - diluted

102,444

 

101,156

 

 

101,896

 

101,142

 

 

 

 

 

 

 

PROPERTY DATA

 

 

 

 

 

Total operating properties (end of period) (c)

169

 

164

 

 

169

 

164

 

Total operating apartment homes in operating properties (end of period) (c)

57,611

56,112

57,611

56,112

Total operating apartment homes (weighted average)

49,887

 

49,069

 

 

49,663

 

49,043

 

(a)

Net income attributable to common shareholders for the three and six months ended June 30, 2020 was negatively impacted by an approximate $14.4 million Pandemic Related Impact.  Please refer to page 27 of the supplement, footnote (a), for additional detail on the breakdown of the Pandemic Related Impact.

 

 

(b)

Capital expenditures necessary to help preserve the value of and maintain the functionality at our communities.

 

 

(c)

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,
2021

Mar 31,
2021

Dec 31,
2020

Sep 30,
2020

Jun 30,
2020

ASSETS

 

 

 

 

 

Real estate assets, at cost

 

 

 

 

 

Land

$1,285,634

 

$1,233,937

 

$1,225,214

 

$1,216,942

 

$1,206,656

 

Buildings and improvements

8,288,865

 

7,863,707

 

7,763,748

 

7,677,676

 

7,597,165

 

 

9,574,499

 

9,097,644

 

8,988,962

 

8,894,618

 

8,803,821

 

Accumulated depreciation

(3,219,085

)

(3,124,504

)

(3,034,186

)

(2,944,769

)

(2,857,124

)

Net operating real estate assets

6,355,414

 

5,973,140

 

5,954,776

 

5,949,849

 

5,946,697

 

Properties under development, including land

443,100

 

541,958

 

564,215

 

522,664

 

514,336

 

Investments in joint ventures

18,415

 

18,800

 

18,994

 

20,992

 

21,735

 

Total real estate assets

6,816,929

 

6,533,898

 

6,537,985

 

6,493,505

 

6,482,768

 

Accounts receivable – affiliates

19,183

 

19,502

 

20,158

 

20,152

 

21,432

 

Other assets, net (a)

241,687

 

213,126

 

216,276

 

217,534

 

211,823

 

Cash and cash equivalents

374,556

 

333,402

 

420,441

 

589,614

 

601,584

 

Restricted cash

4,762

 

4,105

 

4,092

 

3,918

 

4,093

 

Total assets

$7,457,117

 

$7,104,033

 

$7,198,952

 

$7,324,723

 

$7,321,700

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Liabilities

 

 

 

 

 

Notes payable

 

 

 

 

 

Unsecured

$3,168,492

 

$3,167,557

 

$3,166,625

 

$3,225,799

 

$3,224,871

 

Accounts payable and accrued expenses

155,057

 

159,111

 

175,608

 

183,654

 

167,453

 

Accrued real estate taxes

66,696

 

33,155

 

66,156

 

87,159

 

62,499

 

Distributions payable

86,689

 

84,282

 

84,147

 

84,137

 

84,138

 

Other liabilities (b)

193,975

 

185,852

 

189,829

 

177,967

 

172,172

 

Total liabilities

3,670,909

 

3,629,957

 

3,682,365

 

3,758,716

 

3,711,133

 

 

 

 

 

 

 

Equity

 

 

 

 

 

Common shares of beneficial interest

1,098

 

1,070

 

1,069

 

1,068

 

1,068

 

Additional paid-in capital

4,953,703

 

4,588,056

 

4,581,710

 

4,577,813

 

4,574,387

 

Distributions in excess of net income attributable to common shareholders

(897,761

)

(842,628

)

(791,079

)

(737,556

)

(689,809

)

Treasury shares

(334,161

)

(335,511

)

(341,412

)

(341,831

)

(341,637

)

Accumulated other comprehensive income (loss) (c)

(4,638

)

(5,010

)

(5,383

)

(5,431

)

(5,797

)

Total common equity

3,718,241

 

3,405,977

 

3,444,905

 

3,494,063

 

3,538,212

 

Non-controlling interests

67,967

 

68,099

 

71,682

 

71,944

 

72,355

 

Total equity

3,786,208

 

3,474,076

 

3,516,587

 

3,566,007

 

3,610,567

 

Total liabilities and equity

$7,457,117

 

$7,104,033

 

$7,198,952

 

$7,324,723

 

$7,321,700

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Includes net deferred charges of:

$1,655

 

$2,031

 

$2,299

 

$2,686

 

$3,031

 

 

 

 

 

 

 

(b) Includes deferred revenues of:

$232

 

$256

 

$284

 

$314

 

$344

 

 

 

 

 

 

 

(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. 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,

 

2021

2020

 

2021

2020

Net income attributable to common shareholders (a)

$30,179

 

$16,477

 

 

$61,526

 

$59,761

 

Real estate depreciation and amortization

97,122

 

90,500

 

 

187,829

 

180,011

 

Adjustments for unconsolidated joint ventures

2,630

 

2,287

 

 

5,229

 

4,529

 

Income allocated to non-controlling interests

1,260

 

1,103

 

 

2,386

 

2,385

 

Funds from operations

$131,191

 

$110,367

 

 

$256,970

 

$246,686

 

 

 

 

 

 

 

Less: recurring capitalized expenditures

(18,808

)

(18,782

)

 

(31,488

)

(33,607

)

 

 

 

 

 

 

Adjusted funds from operations

$112,383

 

$91,585

 

 

$225,482

 

$213,079

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

EPS diluted

100,767

 

99,408

 

 

100,197

 

99,394

 

FFO/AFFO diluted

102,444

 

101,156

 

 

101,896

 

101,142

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2021

2020

 

2021

2020

Total Earnings Per Common Share - Diluted

$0.30

 

$0.17

 

 

$0.61

 

$0.60

 

Real estate depreciation and amortization

0.95

 

0.89

 

 

1.84

 

1.78

 

Adjustments for unconsolidated joint ventures

0.02

 

0.02

 

 

0.05

 

0.04

 

Income allocated to non-controlling interests

0.01

 

0.01

 

 

0.02

 

0.02

 

FFO per common share - Diluted

$1.28

 

$1.09

 

 

$2.52

 

$2.44

 

 

 

 

 

 

 

Less: recurring capitalized expenditures

(0.18

)

(0.18

)

 

(0.31

)

(0.33

)

 

 

 

 

 

 

AFFO per common share - Diluted

$1.10

 

$0.91

 

 

$2.21

 

$2.11

 

(a)

Net income attributable to common shareholders includes the approximate $14.4 million Pandemic Related Impact for the three and six months ended June 30, 2020. The total Pandemic Related Impact was comprised of $9.5 million related to the Resident Relief Funds which were established in April 2020. Of this amount, approximately $9.1 million was paid to residents at our wholly-owned communities and approximately $1.3 million of Resident Relief Funds paid to residents of the operating communities owned by our unconsolidated joint ventures, of which, we recognized our ownership interest of $0.4 million in equity in income of joint ventures. Additionally, we incurred approximately $4.1 million of pandemic expenses at our operating communities, which included $2.8 million of bonuses paid to on-site employees who provided essential services during the pandemic and $1.3 million in other directly-related pandemic expenses. We also incurred approximately $0.8 million related to the Employee Relief Fund we established to help our employees impacted by the pandemic.

 

 

CAMDEN

 

NON-GAAP FINANCIAL MEASURES

 

 

DEFINITIONS & RECONCILIATIONS

 

 

(In thousands, except per share amounts)

 

 

 

(Unaudited)

 

Expected FFO

Expected FFO is calculated in a method consistent with historical FFO, and is considered an appropriate supplemental measure of expected operating performance when compared to expected earnings per common share (EPS). Guidance excludes gains, if any, on properties not currently held for sale due to the uncertain timing and extent of property dispositions and the resulting gains/losses on sales. A reconciliation of the ranges provided for diluted EPS to expected FFO per diluted share is provided below:

 

3Q21

Range

 

2021

Range

 

Low

High

 

Low

High

Expected earnings per common share - diluted

$0.22

 

$0.28

 

 

$1.09

 

$1.29

 

Expected real estate depreciation and amortization

1.04

 

1.04

 

 

3.93

 

3.93

 

Expected adjustments for unconsolidated joint ventures

0.03

 

0.03

 

 

0.10

 

0.10

 

Expected income allocated to non-controlling interests

0.01

 

0.01

 

 

0.05

 

0.05

 

Expected FFO per share - diluted

$1.30

 

$1.36

 

 

$5.17

 

$5.37

 

 

 

 

 

 

 

 

 

 

 

 

 

Note: This table contains forward-looking statements. Please see paragraph regarding forward-looking statements earlier in this document.

Net Operating Income (NOI)

NOI is defined by the Company as property revenue less property operating and maintenance expenses less real estate taxes. NOI is further detailed in the Components of Property NOI schedules on page 12 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. 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,

 

2021

2020

 

2021

2020

Net income (a)

$31,439

 

$17,511

 

 

$63,912

 

$61,978

 

Less: Fee and asset management income

(2,263

)

(2,380

)

 

(4,469

)

(4,907

)

Less: Interest and other income

(257

)

(325

)

 

(589

)

(654

)

Less: (Income)/loss on deferred compensation plans

(6,400

)

(11,435

)

 

(10,026

)

3,425

 

Plus: Property management expense

6,436

 

5,939

 

 

12,560

 

12,466

 

Plus: Fee and asset management expense

1,019

 

820

 

 

2,151

 

1,663

 

Plus: General and administrative expense

15,246

 

14,391

 

 

29,468

 

27,624

 

Plus: Interest expense

24,084

 

23,482

 

 

47,728

 

43,189

 

Plus: Depreciation and amortization expense

99,586

 

92,803

 

 

192,727

 

184,662

 

Plus: Expense/(benefit) on deferred compensation plans

6,400

 

11,435

 

 

10,026

 

(3,425

)

Less: Gain on sale of land

 

 

 

 

(382

)

Less: Equity in income of joint ventures

(2,198

)

(1,633

)

 

(4,112

)

(3,755

)

Plus: Income tax expense

460

 

394

 

 

812

 

861

 

NOI (b) (c)

$173,552

 

$151,002

 

 

$340,188

 

$322,745

 

 

 

 

 

 

 

"Same Property" Communities

$154,560

 

$150,102

 

 

$305,043

 

$306,056

 

Non-"Same Property" Communities

15,995

 

13,687

 

 

30,485

 

28,114

 

Development and Lease-Up Communities

1,888

 

(339

)

 

2,993

 

(414

)

Pandemic Related Impact (b) (c)

 

(13,170

)

 

 

(13,170

)

Other

1,109

 

722

 

 

1,667

 

2,159

 

NOI (b) (c)

$173,552

 

$151,002

 

 

$340,188

 

$322,745

 

(a)

Net income includes the approximate $14.4 million of  Pandemic Related Impact for the three and six months ended June 30, 2020. Please refer to page 27 of the supplement, footnote (a), for additional detail on the breakdown of the Pandemic Related Impact.

 

 

(b)

Two Resident Relief Funds were established for residents experiencing financial losses caused by the pandemic, and paid out approximately $9.1 million to approximately 7,100 Camden residents of our wholly-owned communities. All charges related to these funds were recognized in 2Q20 as a reduction of revenue.

 

 

(c)

We incurred approximately $4.1 million of pandemic expenses at our operating communities, which included $2.8 million of bonuses paid to on-site employees who provided essential services during the pandemic and $1.3 million in other directly-related pandemic expenses, for the three and six months ended June 30, 2020.

 

CAMDEN

 

NON-GAAP FINANCIAL MEASURES

 

 

DEFINITIONS & RECONCILIATIONS

 

 

(In thousands, except per share amounts)

 

 

 

(Unaudited)

 

Adjusted EBITDA

Adjusted EBITDA is defined by the Company as earnings before interest, taxes, depreciation and amortization, including net operating income from discontinued operations, excluding equity in (income) loss of joint ventures, (gain) loss on sale of unconsolidated joint venture interests, gain on acquisition of controlling interest in joint ventures, gain on sale of operating properties including land, loss on early retirement of debt, income (loss) allocated to non-controlling interests, as well as the direct Pandemic Related Impact. The Company considers Adjusted EBITDA to be an appropriate supplemental measure of operating performance to net income attributable to common shareholders because it represents income before non-cash depreciation and the cost of debt, and excludes gains or losses from property dispositions. Annualized Adjusted EBITDA is Adjusted EBITDA as reported for the period multiplied by 4 for quarter results. A reconciliation of net income attributable to common shareholders to Adjusted EBITDA is provided below:

 

Three months ended June 30,

 

Six months ended June 30,

 

2021

2020

 

2021

2020

Net income attributable to common shareholders (a)

$30,179

 

$16,477

 

 

$61,526

 

$59,761

 

Plus: Interest expense

24,084

 

23,482

 

 

47,728

 

43,189

 

Plus: Depreciation and amortization expense

99,586

 

92,803

 

 

192,727

 

184,662

 

Plus: Income allocated to non-controlling interests

1,260

 

1,034

 

 

2,386

 

2,217

 

Plus: Income tax expense

460

 

394

 

 

812

 

861

 

Plus: Pandemic Related Impact (b)

 

13,920

 

 

 

13,920

 

Less: Gain on sale of land

 

 

 

 

(382

)

Less: Equity in income of joint ventures

(2,198

)

(1,633

)

 

(4,112

)

(3,755

)

Adjusted EBITDA

$153,371

 

$146,477

 

 

$301,067

 

$300,473

 

Annualized Adjusted EBITDA

$613,484

 

$585,908

 

 

$602,134

 

$600,946

 

(a)

Net income attributable to common shareholders includes the approximate $14.4 million Pandemic Related Impact for the three and six months ended June 30, 2020. Please refer to page 27 of the supplement, footnote (a), for additional detail on the breakdown of the Pandemic Related Impact.

 

 

(b)

Approximately $13.9 million of the stated Pandemic Related Impact, which consists of the Resident Relief Funds, Employee Relief Fund, directly-related pandemic expenses, and bonuses paid to on-site employees, has been added back to the Adjusted EBITDA calculation.

Net Debt to Annualized Adjusted EBITDA

The Company believes Net Debt to Annualized Adjusted EBITDA to be an appropriate supplemental measure of evaluating balance sheet leverage. Net Debt is defined by the Company as the average monthly balance of Total Debt during the period, less the average monthly balance of Cash and Cash Equivalents during the period. The following tables reconcile average Total debt to Net debt and computes the ratio to Adjusted EBITDA for the following periods:

Net Debt:

 

 

 

Average monthly balance for the

 

Average monthly balance for the

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

 

 

2021

2020

 

2021

2020

Unsecured notes payable

 

 

$3,168,180

 

$3,224,594

 

 

$3,167,713

 

$2,929,272

 

Total debt

 

 

3,168,180

 

3,224,594

 

 

3,167,713

 

2,929,272

 

Less: Cash and cash equivalents

 

 

(347,724

)

(558,090

)

 

(318,812

)

(282,409

)

Net debt

 

 

$2,820,456

 

$2,666,504

 

 

$2,848,901

 

$2,646,863

 

Net Debt to Annualized Adjusted EBITDA:

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

 

 

2021

2020

 

2021

2020

Net debt

 

 

$2,820,456

 

$2,666,504

 

 

$2,848,901

 

$2,646,863

 

Annualized Adjusted EBITDA

 

 

613,484

 

585,908

 

 

602,134

 

600,946

 

Net Debt to Annualized Adjusted EBITDA

 

 

4.6x

 

4.6x

 

 

4.7x

 

4.4x

 

 

Kim Callahan, 713-354-2549

Source: Camden Property Trust

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REIT Profile

Camden Property Trust
Symbol: CPT
CIK: 906345
Exchange: NYSE
Founded: 1993 (29 years)
Type of REIT: Equity REIT
Listing Status: Public
Market Capitalization: Large-Cap
REIT Sector: Residential

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Last updated: 2022-01-14 12:57:03 PST

Last updated: 2022-01-16 - v0.5