Camden Property Trust Announces Third Quarter 2002 Operating Results.Business Editors HOUSTON--(BUSINESS WIRE)--Oct. 31, 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 third 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 $36.9 million, as compared to $0.95 per diluted share or $42.3 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 nine-month FFO totaled $2.56 per diluted share or $114.5 million compared to $2.79 per diluted share or $124.4 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, nine-month FFO for 2001 was $125.5 million or $2.81 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 third quarter of 2002 was $0.24 per diluted share compared to $0.42 per diluted share for the same period in 2001. EPS for the third quarter of 2001 included a $0.08 per diluted share impact from gain on sale of joint venture properties. For the nine months ended Sept. 30, 2002, EPS totaled $0.84 per diluted share compared to $1.24 per diluted share in 2001. EPS for the nine months ended Sept. 30, 2001 included a net effect of $0.17 per diluted share impact from gains recognized on property sales net of an impairment provision for a technology investment. "Camden's FFO for the first nine months of 2002 totaled $114.5 million, which was more than sufficient to cover all capital expenditures and cash distributions to shareholders," said Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a Campo, chairman and chief executive officer. "We believe that our FFO for 2003 will continue to provide adequate coverage for both dividends and capital expenditures, even at the low end of our guidance range." 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 92.8% during the third quarter of 2002 as compared to 92.1% in the prior quarter of 2002 and 94.6% in the third quarter of 2001. For the 42,379 apartment homes included in "same-property" results, third quarter 2002 revenues decreased 2.8% 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 0.5%, producing a 4.8% 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 third quarter of 2001. On a sequential One after the other in some consecutive order such as by name or number. basis, third quarter 2002 same property NOI rose 0.7% compared to second quarter 2002, with a revenue increase of 0.5% and expense growth of 0.3% compared to the prior quarter. On a year-to-date basis, 2002 same property NOI declined 4.0%, with a revenue decrease of 2.2% and expense growth of 0.9% compared to the same period in 2001. 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. , was completed during the third quarter and is currently 100% leased and 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. . Lease-up continued at Camden Ybor City 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., during the quarter, with stabilization Stabilization 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 expected by mid- mid- pref. Middle: midbrain. 2003. Construction is currently underway on three developments: Camden Harbour View in Long Beach, Calif., Camden Vineyards in Murrieta, Calif., and 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; . Lease-up began at Camden Vineyards during the quarter, and the property is currently 55% leased and 50% occupied. Initial occupancy is expected to occur at Camden Oak Crest during the fourth quarter of 2002, and at Camden Harbour View in early 2003. The company repurchased 953,900 of its common shares of beneficial interest during the third quarter and an additional 990,800 shares subsequent to Sept. 30, 2002. On a year-to-date basis, Camden repurchased a total of 1,944,700 common shares for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $62.7 million at an average price of $32.19 per share. Management expects FFO for 2002 to be approximately $3.40 per diluted share. FFO for 2003 is expected to be between $3.15 and $3.35 per diluted share. EPS is expected to be between $0.23 and $0.25 per diluted share in the fourth quarter of 2002 excluding gains on sales, and between $0.75 and $0.95 per diluted share in 2003, excluding gains on sales. 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 , Nov. 1, 2002 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 third quarter results and discuss its outlook for future performance. To participate in the call, please dial 888/689-4517 by 8:50 a.m. CST, 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 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 146 properties containing 52,376 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 three properties under development, 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.
THIRD QUARTER 2002 - FINANCIAL HIGHLIGHTS
(In thousands, except per share, property data amounts,
ratios and note amounts)
---------------------------------------------------------------------
(Unaudited)
Three Months Ended
September 30,
2002 2001 %Change
------------------------------
Total revenues $105,976 $106,781 (0.8%)
EBITDA(a) 58,675 61,687 (4.9%)
Net income to common shareholders 10,235 18,096 (43.4%)
Earnings per share - basic 0.25 0.44 (43.2%)
Earnings per share - diluted 0.24 0.42 (42.9%)
Funds from operations - diluted 36,935 42,325 (12.7%)
Per share 0.83 0.95 (12.6%)
Dividends per share 0.64 0.61 4.9%
Dividend payout ratio 77.1% 64.2%
Interest expensed 18,075 17,755
Interest capitalized 3,017 2,464
---------- ---------
Total interest incurred 21,092 20,219
Principal amortization 1,311 1,224
Preferred dividends & distributions 3,218 3,218
Interest expense coverage ratio 3.2 x 3.5 x
Total interest coverage ratio 2.8 x 3.1 x
Fixed charge expense coverage ratio 2.6 x 2.8 x
Total fixed charge coverage ratio 2.3 x 2.5 x
Same property NOI increase/(decrease) (4.8%)
(# of apartment homes included) 42,379
Gross turnover of apartment units
(annualized) 74%
Net turnover (excludes on-site
transfers and transfers to other
Camden properties) 67%
---------------------------------------------------------------------
(Unaudited)
Nine Months Ended
September 30,
2002 2001 %Change
------------------------------
Total revenues $313,628 $313,771 (0.0%)
EBITDA(a) 177,792 185,407 (4.1%)
Net income to common shareholders 36,334 51,231 (29.1%)
Earnings per share - basic 0.89 1.30 (31.5%)
Earnings per share - diluted 0.84 1.24 (32.3%)
Funds from operations - diluted 114,526 124,430 (8.0%)
Per share 2.56 2.79 (8.2%)
Dividends per share 1.91 1.83 4.4%
Dividend payout ratio 74.6% 65.6%
Interest expensed 52,662 52,672
Interest capitalized 7,882 8,273
---------- ---------
Total interest incurred 60,544 60,945
Principal amortization 3,879 3,929
Preferred dividends & distributions 9,654 12,199
Interest expense coverage ratio 3.4 x 3.5 x
Total interest coverage ratio 2.9 x 3.0 x
Fixed charge expense coverage ratio 2.7 x 2.7 x
Total fixed charge coverage ratio 2.4 x 2.4 x
Same property NOI increase/(decrease) (4.0%)
(# of apartment homes included) 42,379
Gross turnover of apartment units
(annualized) 67%
Net turnover (excludes on-site
transfers and transfers to other
Camden properties) 61%
(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 September 30,
2002 2001
-----------------------
Total assets $2,580,736 $2,450,969
Total debt $1,387,540 $1,192,188
Common and common equivalent shares,
outstanding end of period (b) 43,866 44,573
Share price, end of period $33.15 $37.10
Preferred units, end of period $149,815 $149,815
Book equity value, end of period (c) $1,057,734 $1,142,117
Market equity value, end of period (c) $1,607,158 $1,806,658
Debt to total market capitalization
ratio 46.3% 39.8%
Debt to assets, at cost 53.8% 48.6%
Unencumbered real estate assets (at
cost) to unsecured debt ratio 217% 238%
(b) Includes: 41,404 common shares (including 1,264 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 Nine Months
Ended Ended
September 30, September 30,
---------------- --------------------
OPERATING DATA 2002 2001 2002 2001
--------------------------- ---------------- --------------------
Rental income $94,707 $94,746 $280,170 $280,072
Other property income 8,304 7,777 23,625 22,100
---------------- --------------------
Total property income 103,011 102,523 303,795 302,172
---------------- --------------------
Development and construction
fees 533 1,937 2,694 4,614
Management fees 220 288 719 874
Other income 2,212 2,033 6,420 6,111
---------------- --------------------
Total revenues 105,976 106,781 313,628 313,771
Property operating and
maintenance 29,458 28,102 83,884 79,622
Real estate taxes 10,345 10,292 31,609 30,806
Property supervision 2,499 2,369 7,220 7,213
General and administrative 3,925 3,426 10,871 9,818
Other expenses 1,074 905 2,252 905
Impairment provision for
technology investments - - - 1,090
Interest 18,075 17,755 52,662 52,672
Depreciation and
amortization 26,675 26,574 78,376 75,918
---------------- --------------------
Total expenses 92,051 89,423 266,874 258,044
---------------- --------------------
Income before gain on sale of
properties, equity in income of
joint ventures, minority
interests and extraordinary
charges 13,925 17,358 46,754 55,727
Gain on sale of properties 3 123 287 2,495
Equity in income of joint
ventures 35 5,437 388 8,361
Extraordinary charge - early
retirement of debt (234) (388) (234) (388)
Income allocated to minority
interests
Distributions on units
convertible into perpetual
preferred shares (3,218) (3,218) (9,654) (9,654)
Income allocated to units
convertible into common
shares (276) (1,216) (1,207) (2,765)
---------------- --------------------
Net income 10,235 18,096 36,334 53,776
Preferred share dividends - - - (2,545)
---------------- --------------------
Net income to common
shareholders $10,235 $18,096 $36,334 $51,231
================ ====================
FUNDS FROM OPERATIONS
----------------------------
Net income to common
shareholders $10,235 $18,096 $36,334 $51,231
Real estate depreciation 25,638 25,586 75,407 73,591
Adjustments for
unconsolidated joint
ventures 555 1,243 1,668 3,016
(Gain) on sale of properties
held in joint ventures - (4,081) (37) (6,648)
(Gain) on sale of
properties (3) (123) (287) (2,495)
Preferred share dividends - - - 2,545
Income allocated to units
convertible into common
shares 276 1,216 1,207 2,765
Extraordinary charge - early
retirement of debt 234 388 234 388
Adjustments for convertible
subordinated debentures - - - 37
---------------- --------------------
Funds from operations -
diluted $36,935 $42,325 $114,526 $124,430
================ ====================
PER SHARE DATA
---------------------------
Earnings per share - basic $0.25 $0.44 $0.89 $1.30
Earnings per share -
diluted 0.24 0.42 0.84 1.24
Funds from operations -
diluted 0.83 0.95 2.56 2.79
Cash distributions 0.64 0.61 1.91 1.83
Weighted average number of
common and
common equivalent shares
outstanding:
Basic 40,645 40,669 40,843 39,490
Diluted 44,346 42,649 44,681 41,264
FFO - diluted 44,346 44,569 44,681 44,637
PROPERTY DATA
---------------------------
Total operating properties
(end of period) (a) 146 145 146 145
Total operating apartment
homes in operating properties
(end of period) (a) 52,376 51,345 52,376 51,345
Total operating apartment
homes (weighted average) 47,216 45,735 46,582 45,380
(a) Includes joint venture investments.
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