Camden Property Trust Announces Second Quarter 2002 Operating Results.Business Editors & Real Estate Writers HOUSTON--(BUSINESS WIRE)--Aug. 1, 2002 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 second quarter of 2002 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 $37.5 million, as compared to $0.94 per diluted share or $42.0 million reported for the same period in 2001. 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 six-month FFO totaled $1.73 per diluted share or $77.6 million compared to $1.84 per diluted share or $82.1 million in 2001. Excluding a $1.1 million impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. provision for a technology investment recorded in the first quarter of 2001, six-month FFO for 2001 was $83.2 million or $1.86 per diluted share. Earnings per share (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 second quarter of 2002 was $0.28 per diluted share compared to $0.40 per diluted share for the same period in 2001. EPS for the second quarter of 2002 and 2001 each included a $0.01 per diluted share impact from gain on sale of properties. For the six months ended June June: see month. 30, 2002, EPS totaled $0.60 per diluted share compared to $0.82 per diluted share in 2001. EPS for the six months ended June 30, 2002 included a $0.01 per diluted share impact from gain on sale of properties. EPS for the six months ended June 30, 2001 included a net effect of $0.03 per diluted share impact from gain on sale of properties net of an impairment provision for a technology investment. Physical occupancy levels averaged 92.1% during the second quarter of 2002 as compared to 91.7% in the prior quarter of 2002 and 94.4% in the second quarter of 2001. For the 42,379 apartment homes included in "same-property" results, second quarter 2002 revenues decreased 2.2% 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 5.2%, producing a 6.5% 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 second quarter of 2001. On a year-to-date basis, 2002 same property NOI declined 3.6%, with a revenue decrease of 1.9% and expense growth of 1.1% compared to the same period in 2001. Camden Farmers Market in Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. and Camden Crown Valley in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, completed lease-up during the quarter, and are currently 92% and 96% occupied respectively. Construction is currently underway on four developments: Camden Harbour View in Long Beach, Calif., Camden Vineyards in Murrieta, Calif., Camden Oak Crest in Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; , and Camden Miramar Miramar (mĭr`əmär'), city (1990 pop. 40,663), Broward co., SE Fla.; inc. 1955. It is a residential community in the rapidly growing I-75 corridor between Miami and Fort Lauderdale. V in Corpus Christi, Texas Corpus Christi is a coastal city and the county seat of Nueces CountyGR6 in the U.S. state of Texas. It is part of the region known as South Texas. . Lease-up began at Camden Vineyards in June 2002, and Camden Miramar V is currently 100% pre-leased. Initial occupancy at both Camden Harbour View and Camden Oak Crest is expected to occur in early 2003. Camden acquired two apartment communities in Tampa Tampa (tăm`pə), city (1990 pop. 280,015), seat of Hillsborough co., W Fla., a port of entry with an impressive harbor on Tampa Bay; inc. 1855. , Fla., (Camden Bay II and Camden Ybor City) and one apartment community in Scottsdale Scottsdale, city (1990 pop. 130,069), Maricopa co., central Ariz.; settled in 1895 by Winfield Scott, inc. 1951. It is a resort and retirement center in the Phoenix metropolitan area. , Ariz. (Camden San Paloma) during the second quarter. Camden Bay II is a 352-unit property which was completed and stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. in 2001, and has now combined operations For the department of the British War Office during World War II, see . In the military, combined operations are operations conducted by forces of two or more allied nations acting together for the accomplishment of a single mission. See also
See peg. during the fourth quarter of 2002. Camden San Paloma is a stabilized 324-unit property which was completed in 1994. The total purchase price for these three communities was $99.7 million. In June 2002, the Company issued $150.0 million of five-year senior unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. notes at a coupon rate Coupon rate In bonds, notes, or other fixed income securities, the stated percentage rate of interest, usually paid twice a year. of 5.875%. Proceeds from the offering were used to reduce the balance outstanding on the line of credit. Camden currently utilizes a $420 million unsecured line of credit which matures in August 2004. During the quarter, the Company initiated syndication See syndication format. of a new line of credit to mature in August 2005, and to-date has received commitments for over $500 million. Camden expects to execute a new credit agreement for $500 million during the third quarter, replacing the existing $420 million line. Based on its current assumptions of a decline in same-property NOI of 3.5% to 4.0% in 2002, management expects FFO for 2002 to be between $3.40 and $3.48 per diluted share. EPS for 2002 is expected to be between $1.12 and $1.20 per diluted share. Camden plans to update its earnings guidance to the market on a quarterly basis. 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 , Aug. 2, 2002 at 10:00 a.m. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT to review its second quarter results and discuss its outlook for future performance. To participate in the call, please dial 888/689-4517 by 9:50 a.m. CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. , 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. Camden Property Trust is a real estate company engaged in the ownership, development, acquisition, management and disposition of multifamily apartment communities. Camden owns interests in and operates 146 properties containing 52,175 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 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 three properties under development and the expansion of an existing property, the Company's portfolio will increase to 53,542 apartment homes in 149 properties. 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. For additional information, please contact Camden's Investor Relations Department at 1-800-9Camden or 713/354-2787 or access our Web site at http://www.camdenliving.com.
SECOND QUARTER 2002 - FINANCIAL HIGHLIGHTS
(In thousands, except per share, property data amounts,
ratios and note amounts)
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2002 2001 % Change 2002 2001 % Change
------------------------ ---------------------------
Total revenues $103,847 $104,332 (0.5%) $207,652 $206,990 0.3%
EBITDA (a) 58,527 62,570 (6.5%) 119,117 123,720 (3.7%)
Net income to
common
shareholders 12,117 16,934 (28.4%) 26,099 33,135 (21.2%)
Earnings per
share -
basic 0.30 0.43 (30.2%) 0.64 0.85 (24.7%)
Earnings per
share -
diluted 0.28 0.40 (30.0%) 0.60 0.82 (26.8%)
Funds from
operations -
diluted 37,489 41,960 (10.7%) 77,591 82,105 (5.5%)
Per share 0.83 0.94 (11.7%) 1.73 1.84 (6.0%)
Dividends per
share 0.64 0.61 4.9% 1.27 1.22 4.1%
Dividend payout
ratio 77.1% 64.9% 73.4% 66.3%
Interest
expensed 17,483 17,774 34,587 34,917
Interest
capitalized 2,602 2,706 4,865 5,809
----- ----- ----- -----
Total
interest
incurred 20,085 20,480 39,452 40,726
Principal
amortization 1,294 1,362 2,569 2,705
Preferred
dividends &
distributions 3,218 3,420 6,436 8,981
Interest expense
coverage ratio 3.3 x 3.5 x 3.4 x 3.5 x
Total interest
coverage ratio 2.9 x 3.1 x 3.0 x 3.0 x
Fixed charge
expense coverage
ratio 2.7 x 2.8 x 2.7 x 2.7 x
Total fixed
charge coverage
ratio 2.4 x 2.5 x 2.5 x 2.4 x
Same property
NOI increase/
(decrease) (6.5%) (3.6%)
(# of apartment
homes included) 42,379 42,379
Gross turnover of
apartment units
(annualized) 67% 63%
Net turnover
(excludes
on-site
transfers and
transfers to
other Camden
properties) 61% 57%
(a) EBITDA, as presented, excludes impairment provisions for
technology investments, equity in income of joint ventures, gain
on sale of real estate assets, income allocated to minority
interests and dividends to preferred unitholders.
As of June 30,
2002 2001
---------------------------
Total assets $2,558,485 $2,446,581
Total debt $1,326,507 $1,195,465
Common and common equivalent
shares, outstanding end of period (b) 45,114 44,443
Share price, end of period $37.03 $36.70
Preferred units, end of period $149,815 $149,815
Book equity value, end of period (c) $1,104,998 $1,146,025
Market equity value, end of period (c) $1,823,571 $1,784,058
Debt to total market capitalization
ratio 42.1% 40.1%
Debt to assets, at cost 51.8% 48.9%
Unencumbered real estate assets
(at cost) to unsecured debt ratio 227% 237%
(b) Includes: 42,652 common shares (including 1,575 restricted share
awards & options), plus common share equivalents upon the assumed
conversion of minority interest units (2,462)
(c) Includes: common shares, preferred and common units, and common
share equivalents
OPERATING RESULTS
(In thousands, except per share and property data amounts)
(Unaudited) Three Months Ended Six Months Ended
June 30, June 30,
-------------------- ------------------
OPERATING DATA 2002 2001 2002 2001
-------- -------- -------- --------
Rental income $93,271 $93,116 $185,463 $185,326
Other property income 7,896 7,372 15,321 14,323
------- ------- -------- --------
Total property income 101,167 100,488 200,784 199,649
------- ------- -------- --------
Development and
construction fees 1,088 1,430 2,160 2,677
Management fees 234 290 500 586
Other income 1,358 2,124 4,208 4,078
------- ------- -------- --------
Total revenues 103,847 104,332 207,652 206,990
Property operating and
maintenance 28,956 25,741 54,426 51,520
Property supervision 2,326 2,464 4,721 4,844
Real estate taxes 10,681 10,448 21,264 20,514
General and administrative 3,357 3,109 6,946 6,392
Other expenses -- -- 1,178 --
Impairment provision for
technology investments -- -- -- 1,090
Interest 17,483 17,774 34,587 34,917
Depreciation and amortization 25,644 24,848 51,701 49,344
------- ------- -------- --------
Total expenses 88,447 84,384 174,823 168,621
------- ------- -------- --------
Income before gain on sale of
properties, equity in income
of joint ventures and
minority interests 15,400 19,948 32,829 38,369
Gain on sale of properties 284 656 284 2,372
Equity in income of joint
ventures 128 228 353 2,924
Income allocated to minority
interests
Distributions on units
convertible into perpetual
preferred shares (3,218) (3,218) (6,436) (6,436)
Income allocated to units
convertible into common
shares (477) (478) (931) (1,549)
------- ------- -------- --------
Net income 12,117 17,136 26,099 35,680
Preferred share dividends -- (202) -- (2,545)
------- ------- -------- --------
Net income to common
shareholders $12,117 $16,934 $26,099 $33,135
======= ======= ======== ========
FUNDS FROM OPERATIONS
Net income to common
shareholders $12,117 $16,934 $26,099 $33,135
Real estate depreciation 24,630 24,198 49,769 48,005
Adjustments for
unconsolidated joint
ventures 549 801 1,113 1,773
(Gain) on sale of properties
held in joint ventures -- -- (37) (2,567)
(Gain) on sale of properties (284) (656) (284) (2,372)
Preferred share dividends -- 202 -- 2,545
Income allocated to units
convertible into common
shares 477 478 931 1,549
Adjustments for convertible
subordinated debentures -- 3 -- 37
------- ------- -------- --------
Funds from operations -
diluted $37,489 $41,960 $77,591 $82,105
======= ======= ======== ========
PER SHARE DATA
Earnings per share - basic $0.30 $0.43 $0.64 $0.85
Earnings per share - diluted 0.28 0.40 0.60 0.82
Funds from operations -
diluted 0.83 0.94 1.73 1.84
Cash distributions 0.64 0.61 1.27 1.22
Weighted average number of
common and common equivalent
shares outstanding:
Basic 41,061 39,797 40,944 38,891
Diluted 45,051 44,525 44,851 42,512
FFO - diluted 45,051 44,525 44,851 44,672
PROPERTY DATA
Total operating properties
(end of period) (a) 146 145 146 145
Total operating apartment
homes in operating
properties (end of
period) (a) 52,175 51,672 52,175 51,672
Total operating apartment
homes (weighted average) 46,659 45,367 46,265 45,203
(a) Includes joint venture investments.
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