Camden Property Trust Announces Third Quarter 2004 Operating Results.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; -- Camden Property Trust (NYSE NYSE See: New York Stock Exchange :CPT CPT See: Carriage Paid To ) announced that its 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 third quarter of 2004 was $5.8 million or $0.14 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 compared to $5.9 million or $0.14 per diluted share for the same period in 2003. For the nine months ended September September: see month. 30, 2004, EPS totaled $22.8 million or $0.54 per diluted share compared to $20.2 million or $0.49 per diluted share for the same period in 2003. 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 2004 totaled $0.76 per diluted share or $33.6 million, as compared to $0.76 per diluted share or $32.9 million reported for the same period in 2003. FFO for the three months ended September 30, 2004 included a charge of $0.7 million or $0.02 per diluted share related to the redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. of $35.5 million of Series C preferred units. FFO for the nine months ended September 30, 2004 totaled $2.38 per diluted share or $105.5 million, as compared to $2.30 per diluted share or $98.9 million reported for the same period in 2003. FFO for the nine months ended September 30, 2004 included $1.7 million or $0.04 per diluted share related to insurance proceeds received for lost rents related to a fire in one of Camden's communities in 2000, a $0.9 million or $0.02 per diluted share gain associated with the sale of an e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. investment that had previously been written off, and a $0.7 million or $0.02 per diluted share charge related to the redemption of $35.5 million of Series C preferred units. 2003 FFO has been adjusted from amounts previously reported to include gains on sale of undepreciated property in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the National Association of Real Estate Investment Trusts ("NAREIT NAREIT National Association of Real Estate Investment Trusts ") definition of FFO. 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 94.8% during the third quarter of 2004 as compared to 94.3% in the second quarter of 2004 and 94.4% in the third quarter of 2003. For the 44,481 apartment homes included in "same-property" results, third quarter 2004 revenues increased 0.5% 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 2.5%, producing a 0.9% 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 2003. On a sequential One after the other in some consecutive order such as by name or number. basis, third quarter 2004 same-property NOI declined 1.7% compared to second quarter 2004, with revenues increasing 0.5% and expenses increasing 3.6% compared to the prior quarter. 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, 2004 same-property NOI increased 0.5%, with a revenue increase of 1.4% and expense growth of 2.6% compared to the same period in 2003. 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. Leasing continued at Camden Harbor harbor: see port. View in Long Beach, CA during the quarter, and that community is currently 84% leased and 82% 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. . Construction continued on Camden Westwind Westwind may refer to:
Orlando (ôrlăn`dō), city (1990 pop. 164,693), seat of Orange co., central Fla., in a lake region; inc. 1875. In a citrus fruit and farm area, it is one of the world's most visited vacation spots. , FL and Camden Farmers Market II 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. , TX, with initial occupancies expected at all three communities during early to mid- mid- pref. Middle: midbrain. 2005. Camden Westwind is being developed in a joint venture format, with Camden retaining a 20% ownership interest. In addition, construction and leasing was completed during the quarter on an additional phase at 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. in Corpus Christi Corpus Christi, in Christianity Corpus Christi [Lat.,=body of Christ], feast of the Western Church, observed on the Thursday after Trinity Sunday (or on the following Sunday). , TX, which added 126 student housing units to the existing community. During the quarter, the Company issued $100 million of 4.70% 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, retired $58.2 million of 7.29% secured mortgage debt, and redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. $35.5 million of its 8.25% Series C preferred units. Original issuance costs of $0.7 million were expensed in connection with the redemption of the Series C preferred units. As previously announced, on October October: see month. 4, 2004, Camden and Summit Properties Inc. executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. a definitive merger agreement pursuant to which Summit will be merged with and into a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Camden. The transaction is currently expected to close in the first quarter of 2005. Camden expects 2004 FFO between $3.18 and $3.30 per diluted share and 2004 EPS between $0.66 and $0.78 per diluted share, excluding any future gains from potential property sales. For 2004, 12 research analysts have contributed FFO estimates on CPT to First Call ranging from $3.18 to $3.27 per diluted share, for a mean of $3.24 per diluted share. The Company also provided guidance for the fourth quarter of 2004 of $0.80 to $0.92 per diluted share for FFO and $0.12 to $0.24 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 , November November: see month. 5, 2004 at 11:00 AM Central Time to review its third quarter results and discuss its outlook for future performance. To participate in the call, please dial (800) 901-5241 (domestic) or (617) 786-2963 (international) by 10:50 AM Central Time and request the Camden Property Trust Third Quarter Earnings Call, Conference Passcode #53493631, 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 145 properties containing 52,008 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 53,122 apartment homes in 148 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. Additional Information about the Merger and Where to Find It In connection with the proposed merger of Summit with and into a wholly owned subsidiary of Camden, Camden and Summit intend to file relevant materials with the Securities and Exchange Commission, including a registration statement on Form S-4 that will contain a prospectus A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security. and a joint proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. . INVESTORS AND SECURITY HOLDERS OF CAMDEN AND SUMMIT ARE URGED TO READ THE MATERIALS WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT CAMDEN, SUMMIT AND THE MERGER. The proxy statement, prospectus and other relevant materials (when they become available), and any other documents filed by Camden or Summit with the SEC, may be obtained free of charge at the SEC's web site at www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . In addition, investors and security holders may obtain free copies of the documents filed with the SEC by Camden by directing a written request to Camden Property Trust, 3 Greenway Plaza Greenway Plaza is a master-planned mixed-use development off of U.S. Highway 59 in Houston, Texas, five miles (8 kilometers) west of Downtown Houston and three miles (5 kilometers) east of Uptown Houston. , Suite 1300, Houston, TX 77046, Attention: Investor Relations, and free copies of the documents filed with the SEC by Summit by directing a written request to Summit Properties Inc. 309 East Morehead Morehead may refer to:
Camden, Summit and their respective executive officers, trust managers and directors may be deemed to be participants in the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of proxies from the security holders of Camden and Summit in connection with the merger. Information about those executive officers and trust managers of Camden and their ownership of Camden common shares is set forth in the proxy statement for Camden's 2004 Annual Meeting of Shareholders, which was filed with the SEC on March 30, 2004. Information about the executive officers and directors of Summit and their ownership of Summit common stock is set forth in the proxy statement for Summit's 2004 Annual Meeting of Stockholders, which was filed with the SEC on March 24, 2004. Investors and security holders may obtain additional information regarding the direct and indirect interests of Camden, Summit and their respective executive officers, trust managers and directors in the merger by reading the proxy statement and prospectus regarding the merger when they become available. This communication shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful Contrary to or unauthorized by law; illegal. When applied to promises, agreements, or contracts, the term denotes that such agreements have no legal effect. The law disapproves of such conduct because it is immoral or contrary to public policy. prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. .
CAMDEN OPERATING RESULTS
(In thousands, except per share and property data amounts)
----------------------------------------------------------------------
(Unaudited) Three Months Ended Nine Months Ended
September 30, September 30,
------------------- --------------------
OPERATING DATA 2004 2003 2004 2003
-------------- --------- --------- --------- ----------
Revenues
Rental revenues $96,937 $93,588 $289,212 $275,289
Other property revenues 9,047 8,790 26,268 25,237
--------- --------- --------- ----------
Total property revenues 105,984 102,378 315,480 300,526
--------- --------- --------- ----------
Development and construction
fees 1,516 1,521 5,348 4,114
Management fees 446 423 1,291 1,288
Other revenues 1,917 802 7,999 3,447
--------- --------- --------- ----------
Total revenues 109,863 105,124 330,118 309,375
Expenses
Property operating and
maintenance 33,537 31,661 95,507 89,815
Real estate taxes 11,604 11,203 34,953 33,448
--------- --------- --------- ----------
Total property expenses 45,141 42,864 130,460 123,263
--------- --------- --------- ----------
Property management 2,901 2,533 8,512 7,494
Fee and asset management 850 598 2,845 3,229
General and administrative 4,074 3,878 12,400 11,926
Other expenses - - - 1,389
Interest 19,305 18,584 59,701 55,459
Amortization of deferred
financing costs 767 658 2,250 1,923
Depreciation 27,149 26,353 80,299 78,699
--------- --------- --------- ----------
Total expenses 100,187 95,468 296,467 283,382
--------- --------- --------- ----------
Income before gain on sale of
land, impairment loss on
land held for sale, equity
in income of joint ventures
and minority interests 9,676 9,656 33,651 25,993
Gain on sale of land - 89 1,255 2,171
Impairment loss on land held
for sale - - (1,143) -
Equity in income of joint
ventures 93 4 259 3,152
Income allocated to minority
interests
Distributions on perpetual
preferred units (2,664) (3,218) (8,350) (9,654)
Original issuance costs on
redeemed perpetual
preferred units (745) - (745) -
Income allocated to common
units (553) (593) (2,078) (1,482)
--------- --------- --------- ----------
Net income $5,807 $5,938 $22,849 $20,180
========= ========= ========= ==========
FUNDS FROM OPERATIONS
---------------------
Net income $5,807 $5,938 $22,849 $20,180
Real estate depreciation 26,741 25,844 78,987 77,129
Adjustments for
unconsolidated joint
ventures 523 529 1,570 1,588
(Gain) on sale of
properties held in joint
ventures - - - (1,436)
Income allocated to common
units 553 593 2,078 1,482
--------- --------- --------- ----------
Funds from operations -
diluted $33,624 $32,904 $105,484 $98,943
========= ========= ========= ==========
PER SHARE DATA
--------------
Net income - basic $0.14 $0.15 $0.57 $0.51
Net income - diluted 0.14 0.14 0.54 0.49
Funds from operations -
diluted 0.76 0.76 2.38 2.30
Cash distributions 0.64 0.64 1.91 1.91
Weighted average number of
common and common equivalent
shares outstanding:
Basic 40,377 39,290 40,234 39,224
Diluted 42,574 41,465 42,381 41,170
FFO - diluted 44,449 43,343 44,257 43,050
PROPERTY DATA
-------------
Total operating properties
(end of period) (a) 145 144 145 144
Total operating apartment
homes in operating
properties (end of
period) (a) 52,008 51,344 52,008 51,344
Total operating apartment
homes (weighted average) 47,192 46,581 47,039 46,237
(a) Includes joint venture investments.
CAMDEN BALANCE SHEETS
(In thousands)
----------------------------------------------------------------------
(Unaudited) Sep 30, Jun 30, Mar 31,
2004 2004 2004
----------- ----------- -----------
ASSETS
Real estate assets, at cost
Land $406,760 $406,626 $404,113
Buildings and improvements 2,583,555 2,573,099 2,538,193
----------- ----------- -----------
2,990,315 2,979,725 2,942,306
Accumulated depreciation (680,184) (653,581) (627,808)
----------- ----------- -----------
Net operating real estate
assets 2,310,131 2,326,144 2,314,498
Properties under development,
including land 174,351 163,326 156,466
Investment in joint ventures 10,076 10,371 10,754
Land held for sale 1,800 1,800 1,800
----------- ----------- -----------
Total real estate assets 2,496,358 2,501,641 2,483,518
Accounts receivable - affiliates 30,434 29,981 28,984
Notes receivable
Affiliates 10,010 9,665 9,335
Other 53,599 48,333 41,685
Other assets, net (a) 49,804 48,063 42,922
Cash and cash equivalents 2,465 1,922 3,836
Restricted cash 4,259 4,841 6,794
----------- ----------- -----------
Total assets $2,646,929 $2,644,446 $2,617,074
=========== =========== ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities
Notes payable
Unsecured $1,435,197 $1,332,216 $1,291,074
Secured 170,129 229,423 230,622
Accounts payable 28,794 31,309 26,112
Accrued real estate taxes 32,732 21,935 14,165
Accrued expenses and other
liabilities 48,192 43,957 54,397
Distributions payable 30,331 31,038 30,974
----------- ----------- -----------
Total liabilities 1,745,375 1,689,878 1,647,344
Commitments and contingencies
Minority interests
Perpetual preferred units 115,060 149,815 149,815
Common units 43,881 44,884 45,711
----------- ----------- -----------
Total minority interests 158,941 194,699 195,526
Shareholders' equity
Common shares of beneficial
interest 486 485 484
Additional paid-in capital 1,346,040 1,344,366 1,340,564
Distributions in excess of net
income (353,996) (333,416) (314,720)
Unearned restricted share awards (14,069) (15,384) (15,937)
Treasury shares, at cost (235,848) (236,182) (236,187)
----------- ----------- -----------
Total shareholders' equity 742,613 759,869 774,204
----------- ----------- -----------
Total liabilities and
shareholders' equity $2,646,929 $2,644,446 $2,617,074
=========== =========== ===========
(a) includes net deferred charges
of: $8,917 $8,756 $9,313
(Unaudited) Dec 31, Sep 30,
2003 2003
----------- -----------
ASSETS
Real estate assets, at cost
Land $400,490 $397,006
Buildings and improvements 2,499,214 2,462,252
----------- -----------
2,899,704 2,859,258
Accumulated depreciation (601,688) (575,459)
----------- -----------
Net operating real estate assets 2,298,016 2,283,799
Properties under development, including land 189,119 236,529
Investment in joint ventures 11,033 9,994
Land held for sale - -
----------- -----------
Total real estate assets 2,498,168 2,530,322
Accounts receivable - affiliates 25,997 7,141
Notes receivable
Affiliates 9,017 -
Other 41,416 24,289
Other assets, net (a) 40,951 39,497
Cash and cash equivalents 3,357 2,341
Restricted cash 6,655 4,058
----------- -----------
Total assets $2,625,561 $2,607,648
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Notes payable
Unsecured $1,277,879 $1,248,852
Secured 231,798 232,953
Accounts payable 26,150 24,025
Accrued real estate taxes 27,407 31,444
Accrued expenses and other liabilities 50,111 51,266
Distributions payable 30,946 30,698
----------- -----------
Total liabilities 1,644,291 1,619,238
Commitments and contingencies
Minority interests
Perpetual preferred units 149,815 149,815
Common units 46,570 47,382
----------- -----------
Total minority interests 196,385 197,197
Shareholders' equity
Common shares of beneficial interest 483 481
Additional paid-in capital 1,330,512 1,321,103
Distributions in excess of net income (297,808) (281,256)
Unearned restricted share awards (11,875) (12,667)
Treasury shares, at cost (236,427) (236,448)
----------- -----------
Total shareholders' equity 784,885 791,213
----------- -----------
Total liabilities and shareholders' equity $2,625,561 $2,607,648
=========== ===========
(a) includes net deferred charges of: $9,558 $8,691
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 of depreciable operating property sales, plus real estate
depreciation and amortization, and after adjustments for
unconsolidated partnerships and joint ventures. Camden's definition of
diluted FFO also assumes conversion 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 of operating properties 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 Nine Months Ended
September 30, September 30,
------------------ ------------------
2004 2003 (a) 2004 2003 (a)
------------------ ------------------
Net income $5,807 $5,938 $22,849 $20,180
Real estate depreciation 26,741 25,844 78,987 77,129
Adjustments for unconsolidated
joint ventures 523 529 1,570 1,588
(Gain) on sale of properties
held in joint ventures - - - (1,436)
Income allocated to common
units 553 593 2,078 1,482
--------- -------- --------- --------
Funds from operations -
diluted $33,624 $32,904 $105,484 $98,943
========= ======== ========= ========
Weighted average number of common
and common equivalent shares
outstanding:
EPS diluted 42,574 41,465 42,381 41,170
FFO diluted 44,449 43,343 44,257 43,050
Net income per common share -
diluted $0.14 $0.14 $0.54 $0.49
FFO per common share - diluted $0.76 $0.76 $2.38 $2.30
(a) FFO for the three months ended and nine months ended September 30,
2003 previously included a reduction of $0.1 million and $2.2
million respectively from gains on sales of undepreciated
property. We have adjusted FFO to include these types of gains as
they currently do not meet NAREITs definition of gains that should
be adjusted from net income in calculating FFO.
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:
4Q04 Range 2004 Range
Low High Low High
---------------- ----------------
Expected net income per share -
diluted $0.12 $0.24 $0.66 $0.78
Expected real estate depreciation 0.64 0.64 2.42 2.42
Expected adjustments for
unconsolidated joint ventures 0.02 0.02 0.05 0.05
Expected income allocated to common
units 0.02 0.02 0.06 0.06
---------------- ----------------
Expected FFO per share - diluted $0.80 $0.92 $3.18 $3.30
Note: This table contains forward-looking statements. Please see the
paragraph regarding forward-looking statements.
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 Nine Months Ended
September 30, September 30,
------------------- --------------------
2004 2003 2004 2003
--------- --------- --------- ----------
Net income $5,807 $5,938 $22,849 $20,180
Development and construction
fees (1,516) (1,521) (5,348) (4,114)
Management fees (446) (423) (1,291) (1,288)
Other revenues (1,917) (802) (7,999) (3,447)
Property management expense 2,901 2,533 8,512 7,494
Fee and asset management
expense 850 598 2,845 3,229
General and administrative
expense 4,074 3,878 12,400 11,926
Other expenses - - - 1,389
Interest expense 19,305 18,584 59,701 55,459
Amortization of deferred
financing costs 767 658 2,250 1,923
Depreciation 27,149 26,353 80,299 78,699
Gain on sale of land - (89) (1,255) (2,171)
Impairment loss on land held
for sale - - 1,143 -
Equity in income of joint
ventures (93) (4) (259) (3,152)
Distributions on perpetual
preferred units 2,664 3,218 8,350 9,654
Original issuance costs on
redeemed perpetual preferred
units 745 - 745 -
Income allocated to common
units 553 593 2,078 1,482
--------- --------- --------- ----------
Net Operating Income (NOI) $60,843 $59,514 $185,020 $177,263
"Same Property" net operating
income $55,855 $56,347 $170,754 $169,903
Non-"Same Property" net
operating income 3,973 2,789 11,669 6,874
Development and Lease-Up net
operating income 1,012 356 2,617 466
Dispositions / Other net
operating income 3 22 (20) 20
--------- --------- --------- ----------
Net Operating Income (NOI) $60,843 $59,514 $185,020 $177,263
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 Nine Months Ended
September 30, September 30,
------------------- --------------------
2004 2003 2004 2003
--------- --------- --------- ----------
Net income $5,807 $5,938 $22,849 $20,180
Interest expense 19,305 18,584 59,701 55,459
Amortization of deferred
financing costs 767 658 2,250 1,923
Depreciation 27,149 26,353 80,299 78,699
Distributions on perpetual
preferred units 2,664 3,218 8,350 9,654
Original issuance costs on
redeemed perpetual preferred
units 745 - 745 -
Income allocated to common
units 553 593 2,078 1,482
Gain on sale of land - (89) (1,255) (2,171)
Impairment loss on land held
for sale - - 1,143 -
Equity in income of joint
ventures (93) (4) (259) (3,152)
--------- --------- --------- ----------
EBITDA $56,897 $55,251 $175,901 $162,074
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