Camden Property Trust Announces Fourth Quarter 2003 Operating Results.Business Editors HOUSTON--(BUSINESS WIRE)--Feb. 5, 2004 Camden Property Trust (NYSE NYSE See: New York Stock Exchange :CPT CPT See: Carriage Paid To ) announced that its funds from operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. ("FFO FFO See: Funds from operations ") for the fourth quarter of 2003 totaled $0.83 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share or $36.3 million, as compared to $0.84 per diluted share or $35.8 million reported for the same period in 2002. On a year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. basis, Camden's twelve-month FFO totaled $3.08 per diluted share or $133.1 million in 2003, compared to $3.39 per diluted share or $150.1 million in 2002. Due to the implementation of new accounting guidance, FFO for 2002 has been adjusted by $0.01 per diluted share to include losses related to early retirement of debt. Net income ("EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ") for the fourth quarter of 2003 was $0.22 per diluted share compared to $0.93 per diluted share for the same period in 2002. EPS for the fourth quarter of 2002 included a $0.71 per diluted share impact from gain on sale of properties. For the twelve months ended Dec. 31, 2003, EPS totaled $0.71 per diluted share compared to $1.73 per diluted share in 2002. EPS for the twelve months ended Dec. 31, 2003 and 2002 included a $0.10 and $0.67 per diluted share impact from gain on sale of properties, respectively. A reconciliation of net income to FFO is included in the financial tables accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. this press release. Physical occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy levels averaged 94.5% during the fourth quarter of 2003 as compared to 94.4% in the third quarter of 2003 and 92.0% in the fourth quarter of 2002. For the 42,137 apartment homes included in "same-property" results, fourth quarter 2003 revenues increased 0.9% while operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased 5.1%, producing a 1.7% decline in same-property net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. ("NOI NOI Net Operating Income NOI Notice of Intent NOI Nation of Islam NOI Notice of Inquiry NOI Neuro Orthopaedic Institute NOI New Organizing Institute NOI Notice of Interest NOI No Offense Intended NOI National Olympiad in Informatics ") compared to the fourth quarter of 2002. On a sequential One after the other in some consecutive order such as by name or number. basis, fourth quarter 2003 same property NOI increased 4.9% compared to third quarter 2003, with revenues increasing 0.2% and expenses decreasing 6.4% compared to the prior quarter. On a year-to-date basis, 2003 same property NOI declined 5.0%, with a revenue decrease of 1.3% and expense growth of 4.7% compared to the same period in 2002. A reconciliation of net income to net operating income and same-property net operating income is included in the financial tables accompanying this press release. The Company continued its lease-ups of Camden Sierra (company, games) Sierra - (Or "Sierra On-Line") A computer game developer founded in the early 1980s by Ken and Roberta Willams in the small mountain town of Oakhurst California. Sierra was named after the local mountian range, 15 miles from the famous Yosemite National Park. at Otay Ranch ranch, large farm devoted chiefly to raising and breeding cattle, horses, sheep, and goats. The cattle ranch was introduced from Latin America to Texas and the plains of the W United States and Canada. in Chula Vista Chula Vista (ch  `lə), city (1990 pop. 135,163), San Diego co., S Calif., on San Diego Bay; inc. 1911. , Calif., Camden Oak Crest in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation).Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the , and Camden Harbor harbor: see port. View in Long Beach, Calif., during the quarter. Camden Sierra at Otay Ranch is currently 90% leased and 89% occupied oc·cu·py tr.v. oc·cu·pied, oc·cu·py·ing, oc·cu·pies 1. To fill up (time or space): a lecture that occupied three hours. 2. To dwell or reside in. 3. , Camden Oak Crest is 84% leased and 85% occupied, and Camden Harbor View is 42% leased and 41% occupied. Construction on Camden Harbor View should be completed in spring 2004. Camden also began construction at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. on Camden Westwind Westwind may refer to:
The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders in late 2006. Camden reconfirmed its expected range for 2004 FFO between $3.10 and $3.30 per diluted share and 2004 EPS between $0.58 and $0.78 per diluted share, excluding any gains recognized from property sales. The 2004 guidance is based on projections of same-property NOI growth between -2.0% and 2.0%, acquisitions of $100 million, dispositions of $100 million and new development starts of $100 to $200 million. For 2004, 12 research analysts have contributed FFO estimates on CPT to First Call ranging from $3.10 to $3.32 per diluted share, for a mean of $3.23 per diluted share. The Company also provided guidance for the first quarter of 2004 of $0.76 to $0.79 per diluted share for FFO and $0.14 to $0.17 per diluted share for EPS. Camden updates its earnings guidance to the market on a quarterly basis. A reconciliation of expected net income to expected FFO is included in the financial tables accompanying this press release. The Company will hold a conference call on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , Feb. 6, 2004 at 9:00 a.m. CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. to review its fourth quarter results and discuss its outlook for future performance. To participate in the call, please dial 800-884-5695 (domestic) or 617-786-2960 (international) by 8:50 a.m. CST and request the Camden Property Trust Fourth Quarter Earnings Call, Conference Passcode #61628222, or join the live webcast of the conference call by accessing the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the Company's Web site at www.camdenliving.com. Supplemental financial information is available in the Investor Relations section of the Company's Web site or by calling Camden's Investor Relations Department at 800-922-6336. In addition to historical information, this press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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. Camden Property Trust is a real estate company engaged in the ownership, development, acquisition, management and disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of of multifamily apartment communities. Camden owns interests in and operates 144 properties containing 51,344 apartment homes in the Sunbelt Sunbelt Region, south and southwestern U.S. It is characterized by a warm climate, rapid population growth since 1970, and relatively conservative voting patterns. Comprising 15 states, it extends from Virginia and Florida in the southeast through Nevada in the southwest, and Midwestern Mid·west or Middle West A region of the north-central United States around the Great Lakes and the upper Mississippi Valley. It is generally considered to include Ohio, Indiana, Illinois, Michigan, Wisconsin, Minnesota, Iowa, Missouri, Kansas, and markets from Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and to California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). . Upon completion of two properties under development, the Company's portfolio will increase to 52,346 apartment homes in 146 properties. For additional information, please contact Camden's Investor Relations Department at 800-922-6336 or 713-354-2787 or access our Web site at http://www.camdenliving.com.
CAMDEN
OPERATING RESULTS
(In thousands, except per share and property data amounts)
----------------------------------------------------------------------
(Unaudited) Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ -------------------
OPERATING DATA 2003 2002 2003 2002
--------- -------- --------- ---------
Revenues
Rental income $96,035 $91,967 $371,019 $365,883
Other property income 7,928 7,613 32,560 30,622
--------- -------- --------- ---------
Total property income 103,963 99,580 403,579 396,505
--------- -------- --------- ---------
Development and construction
fees 1,453 1,472 5,567 4,497
Management fees 421 458 1,709 1,767
Other income 2,238 1,794 5,685 8,214
--------- -------- --------- ---------
Total revenues 108,075 103,304 416,540 410,983
Expenses
Property operating and
maintenance 29,711 27,305 118,616 108,915
Real estate taxes 10,680 10,124 44,128 41,005
--------- -------- --------- ---------
Total property expenses 40,391 37,429 162,744 149,920
--------- -------- --------- ---------
Property management 2,660 2,807 10,154 10,027
Fee and asset management 679 897 3,908 2,499
General and administrative 4,305 4,249 16,231 14,439
Other expenses - 538 1,389 2,790
Losses related to early
retirement of debt - - - 234
Interest 19,955 18,837 75,414 71,499
Amortization of deferred
financing costs 711 635 2,634 2,165
Depreciation 26,743 25,936 105,442 101,177
--------- -------- --------- ---------
Total expenses 95,444 91,328 377,916 354,750
--------- -------- --------- ---------
Income from continuing
operations before gain on sale
of properties, equity in income
of joint ventures and minority
interests 12,631 11,976 38,624 56,233
Gain on sale of properties 419 72 2,590 359
Equity in income of joint
ventures 48 (22) 3,200 366
Income allocated to minority
interests
Distributions on units
convertible into perpetual
preferred shares (3,093) (3,218) (12,747) (12,872)
Income allocated to units
convertible into common
shares (755) (600) (2,237) (1,807)
--------- -------- --------- ---------
Income from continuing
operations 9,250 8,208 29,430 42,279
Income from discontinued
operations - 871 - 3,134
Gain on sale of discontinued
operations - 29,199 - 29,199
--------- -------- --------- ---------
Net income $9,250 $38,278 $29,430 $74,612
========= ======== ========= =========
FUNDS FROM OPERATIONS
Net income $9,250 $38,278 $29,430 $74,612
Real estate depreciation from
continuing operations 26,225 25,404 103,354 99,206
Real estate depreciation from
discontinued operations - 180 - 1,785
Adjustments for unconsolidated
joint ventures 526 621 2,114 2,289
(Gain) on sale of properties (419) (72) (2,590) (359)
(Gain) on sale of properties
held in joint ventures - - (1,436) (37)
(Gain) on sale of discontinued
operations - (29,199) - (29,199)
Income allocated to units
convertible into common
shares 755 600 2,237 1,807
--------- -------- --------- ---------
Funds from operations -
diluted $36,337 $35,812 $133,109 $150,104
========= ======== ========= =========
PER SHARE DATA
Net income - basic $0.23 $0.98 $0.75 $1.84
Net income - diluted 0.22 0.93 0.71 1.73
Income from continuing
operations - basic 0.23 0.21 0.75 1.05
Income from continuing
operations - diluted 0.22 0.20 0.71 1.00
Funds from operations -
diluted 0.83 0.84 3.08 3.39
Cash distributions 0.64 0.64 2.54 2.54
Weighted average number of
common and common equivalent
shares outstanding:
Basic 39,743 39,247 39,355 40,441
Diluted 41,903 40,951 41,354 44,216
FFO - diluted 43,782 42,837 43,234 44,216
PROPERTY DATA
Total operating properties
(end of period) (a) 144 143 144 143
Total operating apartment
homes in operating properties
(end of period) (a) 51,344 50,790 51,344 50,790
Total operating apartment
homes (weighted average) 46,819 47,254 46,382 46,750
Total operating apartment
homes - excluding
discontinued operations
(weighted average) 46,819 46,087 46,382 45,465
(a) Includes joint venture investments.
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) Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,
2003 2003 2003 2003 2002
--------------------------------------------------------
ASSETS
Real estate
assets, at
cost
Land $400,490 $397,006 $396,527 $392,794 $386,246
Buildings
and
improvements 2,499,214 2,462,252 2,437,833 2,392,936 2,348,702
-------------------------------------------------------
2,899,704 2,859,258 2,834,360 2,785,730 2,734,948
Accumulated
depreciation (601,688) (575,459) (549,769) (524,165) (498,776)
-------------------------------------------------------
Net operating
real estate
assets 2,298,016 2,283,799 2,284,591 2,261,565 2,236,172
Properties
under
development,
including
land 189,119 236,529 242,682 264,259 285,636
Investment in
joint
ventures 11,033 9,994 10,247 10,919 15,386
Investment in
third party
development
properties - - - - -
-------------------------------------------------------
Total real
estate
assets 2,498,168 2,530,322 2,537,520 2,536,743 2,537,194
Accounts
receivable -
affiliates 25,997 7,141 6,736 6,444 5,843
Notes receivable
Affiliates - - - 1,800 1,800
Other 50,433 24,289 21,314 17,664 17,614
Other assets,
net (a) 40,951 39,497 40,959 43,143 41,827
Cash and cash
equivalents 3,357 2,341 1,550 1,945 405
Restricted
cash 6,655 4,058 4,258 4,365 4,216
-------------------------------------------------------
Total
assets $2,625,561 $2,607,648 $2,612,337 $2,612,104 $2,608,899
=======================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Notes payable
Unsecured $1,277,879 $1,248,852 $1,236,681 $1,208,513 $1,177,347
Secured 231,798 232,953 240,711 248,481 249,669
Accounts
payable 26,150 24,025 34,580 36,978 36,189
Accrued real
estate taxes 27,407 31,444 20,822 12,782 26,827
Accrued
expenses and
other
liabilities 50,111 51,266 44,226 51,397 48,144
Distributions
payable 30,946 30,698 30,663 30,639 30,541
-------------------------------------------------------
Total
liabil-
ities 1,644,291 1,619,238 1,607,683 1,588,790 1,568,717
Commitments and
contingencies
Minority interests
Units convertible
into perpetual
preferred
shares 149,815 149,815 149,815 149,815 149,815
Units
convertible
into common
shares 46,570 47,382 48,354 49,621 50,914
-------------------------------------------------------
Total minority
interests 196,385 197,197 198,169 199,436 200,729
Shareholders' equity
Common shares
of beneficial
interest 483 481 480 479 479
Additional
paid-in
capital 1,330,512 1,321,103 1,320,045 1,318,649 1,314,592
Distributions
in excess of
net income (297,808) (281,256) (261,577) (241,960) (224,756)
Unearned
restricted
share awards (11,875) (12,667) (15,477) (16,282) (13,714)
Treasury
shares, at
cost (236,427) (236,448) (236,986) (237,008) (237,148)
-------------------------------------------------------
Total
shareholders'
equity 784,885 791,213 806,485 823,878 839,453
-------------------------------------------------------
Total
liabilities
and
shareholders'
equity $2,625,561 $2,607,648 $2,612,337 $2,612,104 $2,608,899
=======================================================
(a) includes net
deferred
charges of: $9,558 $8,691 $9,268 $9,925 $10,190
CAMDEN
NON-GAAP FINANCIAL MEASURES
DEFINITIONS & RECONCILIATIONS
(In thousands, except per share amounts)
----------------------------------------------------------------------
(Unaudited)
This document contains certain non-GAAP financial measures that
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
generally accepted accounting principles ("GAAP"), excluding gains or
losses from sales of property, plus real estate depreciation and
amortization, and after adjustments for unconsolidated partnerships
and joint ventures. Camden's definition of diluted FFO also assumes
conversion at the beginning of the period of all dilutive convertible
securities, including minority interests, which are convertible into
common equity. The Company considers FFO to be an appropriate
supplemental measure of operating performance because, by excluding
gains or losses on dispositions and excluding depreciation, FFO can
help one compare the operating performance of a company's real estate
between periods or as compared to different companies. A
reconciliation of net income to FFO is provided below:
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ -------------------
2003 2002 2003 2002
--------- -------- --------- ---------
Net income $9,250 $38,278 $29,430 $74,612
Real estate depreciation from
continuing operations 26,225 25,404 103,354 99,206
Real estate depreciation from
discontinued operations - 180 - 1,785
Adjustments for unconsolidated
joint ventures 526 621 2,114 2,289
(Gain) on sale of properties (419) (72) (2,590) (359)
(Gain) on sale of properties
held in joint ventures - - (1,436) (37)
(Gain) on sale of discontinued
operations - (29,199) - (29,199)
Income allocated to units
convertible into common shares 755 600 2,237 1,807
--------- -------- --------- ---------
Funds from operations -
diluted $36,337 $35,812 $133,109 $150,104
========= ======== ========= =========
Weighted average number of
common and common equivalent
shares outstanding:
EPS diluted 41,903 40,951 41,354 44,216
FFO diluted 43,782 42,837 43,234 44,216
Net income per common share -
diluted $0.22 $0.93 $0.71 $1.73
FFO per common share - diluted $0.83 $0.84 $3.08 $3.39
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 net income (EPS). A
reconciliation of the ranges provided for expected net income per
diluted share to expected FFO per diluted share is provided below:
1Q04 Range 2004 Range
Low High Low High
--------- -------- --------- ---------
Expected net income per share -
diluted $0.14 $0.17 $0.58 $0.78
Expected real estate
depreciation 0.60 0.60 2.42 2.42
Expected adjustments for
unconsolidated joint ventures 0.01 0.01 0.05 0.05
Expected income allocated to
units convertible into common
shares 0.01 0.01 0.05 0.05
Expected (gain) on sale of
properties held in joint
ventures 0.00 0.00 0.00 0.00
Expected (gain) on sale of
properties 0.00 0.00 0.00 0.00
--------- -------- --------- ---------
Expected FFO per share - diluted $0.76 $0.79 $3.10 $3.30
Net Operating Income (NOI)
--------------------------
NOI is defined by the Company as total property income less property
operating and maintenance expenses less real estate taxes. The Company
considers NOI to be an appropriate supplemental measure of operating
performance to net income 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 to net operating income is provided
below:
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ -------------------
2003 2002 2003 2002
--------- -------- --------- ---------
Net income $9,250 $38,278 $29,430 $74,612
Development and construction
fees (1,453) (1,472) (5,567) (4,497)
Management fees (421) (458) (1,709) (1,767)
Other income (2,238) (1,794) (5,685) (8,214)
Property management expense 2,660 2,807 10,154 10,027
Fee and asset management expense 679 897 3,908 2,499
General and administrative
expense 4,305 4,249 16,231 14,439
Other expenses - 538 1,389 2,790
Losses related to early
retirement of debt - - - 234
Interest expense 19,955 18,837 75,414 71,499
Amortization of deferred
financing costs 711 635 2,634 2,165
Depreciation 26,743 25,936 105,442 101,177
Gain on sale of properties (419) (72) (2,590) (359)
Equity in income of joint
ventures (48) 22 (3,200) (366)
Distributions on units
convertible into perpetual
preferred shares 3,093 3,218 12,747 12,872
Income allocated to units
convertible into common shares 755 600 2,237 1,807
Income from discontinued
operations - (871) - (3,134)
Gain on sale of discontinued
operations - (29,199) - (29,199)
--------- -------- --------- ---------
Net Operating Income (NOI) $63,572 $62,151 $240,835 $246,585
"Same Property" net operating
income $54,816 $55,761 $213,418 $224,623
Non-"Same Property" net
operating income 6,788 5,374 23,036 15,999
Development and Lease-Up net
operating income 1,918 - 4,173 -
Dispositions / Other net
operating income 50 1,016 208 5,963
--------- -------- --------- ---------
Net Operating Income (NOI) $63,572 $62,151 $240,835 $246,585
EBITDA
------
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 of joint ventures,
gain on sale of real estate assets, and income allocated to minority
interests. The Company considers EBITDA to be an appropriate
supplemental measure 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. A
reconciliation of net income to EBITDA is provided below:
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ -------------------
2003 2002 2003 2002
--------- -------- --------- ---------
Net income $9,250 $38,278 $29,430 $74,612
Interest expense 19,955 18,837 75,414 71,499
Losses related to early
retirement of debt - - - 234
Amortization of deferred
financing costs 711 635 2,634 2,165
Depreciation 26,743 25,936 105,442 101,177
Distributions on units
convertible into perpetual
preferred shares 3,093 3,218 12,747 12,872
Income allocated to units
convertible into common shares 755 600 2,237 1,807
Real estate depreciation from
discontinued operations - 180 - 1,785
Gain on sale of properties (419) (72) (2,590) (359)
Equity in income of joint
ventures (48) 22 (3,200) (366)
Gain on sale of discontinued
operations - (29,199) - (29,199)
--------- -------- --------- ---------
EBITDA $60,040 $58,435 $222,114 $236,227
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