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Camden Property Trust Announces Third Quarter 2022 Operating Results

Camden Property Trust (NYSE:CPT) (the "Company") announced today operating results for the three and nine months ended September 30, 2022. Net Income Attributable to Common Shareholders (“EPS”), Funds from Operations (“FFO”), and Adjusted Funds from Operations (“AFFO”) for the three and nine months ended September 30, 2022 are detailed below. A reconciliation of EPS to FFO is included in the financial tables accompanying this press release.

 

Three Months Ended

Nine Months Ended

 

September 30,

September 30,

Per Diluted Share

2022

2021

2022

2021

EPS(1)(2)

$0.27

$0.29

$5.62

$0.90

FFO(1)

$1.70

$1.36

$4.85

$3.88

AFFO(1)

$1.47

$1.17

$4.28

$3.38

(1) For the three and nine months ended September 30, 2022, EPS, FFO, and AFFO included approximately $0.01 per diluted share in storm-related expenses related to Hurricane Ian.

(2) For the nine months ended September 30, 2022, EPS included a non-cash gain on acquisition of unconsolidated joint venture interests of approximately $4.37 per diluted share.

 

Quarterly Growth

Sequential Growth

Year-To-Date Growth

Same Property Results

3Q22 vs. 3Q21

3Q22 vs. 2Q22

2022 vs. 2021

Revenues

11.7%

3.1%

11.6%

Expenses(1)

4.0%

2.8%

4.1%

Net Operating Income ("NOI")(1)

16.3%

3.2%

16.0%

(1) For the three and nine months ended September 30, 2022, same property results exclude approximately $1.0 million of storm-related expenses related to Hurricane Ian.

Same Property Results

3Q22

3Q21

2Q22

Occupancy

96.6%

97.2%

96.9%

For 2022, the Company defines same property communities as communities wholly-owned and stabilized since January 1, 2021, 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.

Operating Statistics - Same Property Portfolio

New Lease and Renewal Data - Date Signed (1)

October 2022*

October 2021

3Q22

3Q21

New Lease Rates

5.2%

17.6%

11.8%

19.2%

Renewal Rates

9.4%

13.8%

11.5%

12.3%

Blended Rates

6.9%

15.9%

11.6%

15.6%

New Lease and Renewal Data - Date Effective (2)

October 2022*

October 2021

3Q22

3Q21

New Lease Rates

8.0%

19.1%

14.2%

16.2%

Renewal Rates

11.3%

13.1%

14.0%

8.8%

Blended Rates

9.7%

16.0%

14.1%

12.2%

*Data as of October 24, 2022

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

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

Occupancy and Turnover Data

October 2022*

October 2021

3Q22

3Q21

Occupancy

96.1%

97.2%

96.6%

97.2%

Annualized Gross Turnover

49%

47%

59%

55%

Annualized Net Turnover

41%

39%

51%

47%

*Data as of October 24, 2022

Development Activity

During the quarter, lease-up was completed at Camden Buckhead in Atlanta, GA and Camden Hillcrest in San Diego, CA and construction commenced at Camden Woodmill Creek in The Woodlands, TX and Camden Long Meadow Farms in Richmond, TX. Additionally, leasing began at Camden Atlantic in Plantation, FL and leasing continued at Camden Tempe II in Phoenix, AZ.

Development Communities - Construction Ongoing ($ in millions)

 

 

Total

Total

% Leased

Community Name

Location

Homes

Estimated Cost

as of 10/24/2022

Camden Atlantic

Plantation, FL

269

$100.0

40%

Camden Tempe II

Tempe, AZ

397

115.0

33%

Camden NoDa

Charlotte, NC

387

105.0

 

Camden Durham

Durham, NC

420

145.0

 

Camden Village District

Raleigh, NC

369

138.0

 

Camden Woodmill Creek

The Woodlands, TX

189

75.0

 

Camden Long Meadow Farms

Richmond, TX

188

80.0

 

Total

 

2,219

$758.0

 

Capital Markets Transactions

During the quarter, the Company amended and restated its existing unsecured credit facility adding a $300 million delayed draw unsecured term loan facility and increased the capacity of the unsecured revolving credit facility from $900 million to $1.2 billion, for a total facility capacity of $1.5 billion. The Company also extended the maturity date of its $40 million unsecured floating rate term loan with an unrelated third party to mature in 2024.

Subsequent to quarter end, Camden's Board of Trust Managers increased its share repurchase authorization from $269 million to $500 million. No share repurchases were made during the quarter or subsequent to quarter end.

Liquidity Analysis

As of September 30, 2022, Camden had over $1.5 billion of liquidity comprised of approximately $62.0 million in cash and cash equivalents, and nearly $1.5 billion of availability under its unsecured credit facility and delayed draw unsecured term loan facility. At quarter-end, the Company had $348.4 million left to fund under its existing wholly-owned development pipeline.

Earnings Guidance

Camden updated its earnings guidance for 2022 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for fourth quarter 2022 as detailed below. Expected EPS excludes gains, if any, from real estate transactions not completed by quarter end.

 

4Q22

2022

2022 Midpoint

Per Diluted Share

Range

Range

Current

Prior

Change

EPS

$0.36 - $0.40

$5.98 - $6.02

$6.00

$5.97

$0.03

FFO

$1.72 - $1.76

$6.57 - $6.61

$6.59

$6.58

$0.01

 

 

 

 

 

 

 

 

2022

2022 Midpoint

Same Property Growth

 

Range

Current

Prior

Change

Revenues

 

11.00% - 11.50%

11.25%

11.25%

—%

Expenses

 

4.75% - 5.25%

5.00%

5.00%

—%

NOI

 

14.25% - 15.25%

14.75%

14.75%

—%

Camden intends to update its earnings guidance to the market on a quarterly basis. Additional information on the Company’s 2022 financial outlook and a reconciliation of expected EPS to expected FFO are included in the financial tables accompanying this press release.

Conference Call

Friday, October 28, 2022 at 10:00 AM CT

Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061

Passcode: 5737190

Webcast: https://investors.camdenliving.com

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 500 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 171 properties containing 58,433 apartment homes across the United States. Upon completion of 7 properties currently under development, the Company’s portfolio will increase to 60,652 apartment homes in 178 properties. Camden has been recognized as one of the 100 Best Companies to Work For® by FORTUNE magazine for 15 consecutive years, most recently ranking #26.

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 September 30,

 

Nine Months Ended September 30,

 

 

2022

 

2021

 

2022

 

2021

OPERATING DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property revenues (a)

 

$

373,772

 

 

$

294,130

 

 

$

1,046,847

 

 

$

838,221

 

 

 

 

 

 

 

 

 

 

Property expenses (b)

 

 

 

 

 

 

 

 

Property operating and maintenance

 

 

84,649

 

 

 

71,337

 

 

 

234,504

 

 

 

200,360

 

Real estate taxes

 

 

48,182

 

 

 

38,731

 

 

 

136,448

 

 

 

113,611

 

Total property expenses

 

 

132,831

 

 

 

110,068

 

 

 

370,952

 

 

 

313,971

 

 

 

 

 

 

 

 

 

 

Non-property income

 

 

 

 

 

 

 

 

Fee and asset management

 

 

617

 

 

 

3,248

 

 

 

4,257

 

 

 

7,717

 

Interest and other income

 

 

88

 

 

 

443

 

 

 

2,881

 

 

 

1,032

 

Income/(loss) on deferred compensation plans

 

 

(6,275

)

 

 

(843

)

 

 

(28,450

)

 

 

9,183

 

Total non-property income/(loss)

 

 

(5,570

)

 

 

2,848

 

 

 

(21,312

)

 

 

17,932

 

 

 

 

 

 

 

 

 

 

Other expenses

 

 

 

 

 

 

 

 

Property management

 

 

6,732

 

 

 

6,640

 

 

 

21,228

 

 

 

19,200

 

Fee and asset management

 

 

556

 

 

 

1,159

 

 

 

2,090

 

 

 

3,310

 

General and administrative

 

 

14,002

 

 

 

14,960

 

 

 

44,526

 

 

 

44,428

 

Interest

 

 

29,192

 

 

 

24,987

 

 

 

82,756

 

 

 

72,715

 

Depreciation and amortization

 

 

158,877

 

 

 

111,462

 

 

 

429,749

 

 

 

304,189

 

Expense/(benefit) on deferred compensation plans

 

 

(6,275

)

 

 

(843

)

 

 

(28,450

)

 

 

9,183

 

Total other expenses

 

 

203,084

 

 

 

158,365

 

 

 

551,899

 

 

 

453,025

 

 

 

 

 

 

 

 

 

 

Gain on sale of operating property

 

 

 

 

 

 

 

 

36,372

 

 

 

 

Gain on acquisition of unconsolidated joint venture interests

 

 

 

 

 

 

 

 

474,146

 

 

 

 

Equity in income of joint ventures

 

 

 

 

 

2,540

 

 

 

3,048

 

 

 

6,652

 

Income from continuing operations before income taxes

 

 

32,287

 

 

 

31,085

 

 

 

616,250

 

 

 

95,809

 

Income tax expense

 

 

(737

)

 

 

(480

)

 

 

(2,213

)

 

 

(1,292

)

Net income

 

 

31,550

 

 

 

30,605

 

 

 

614,037

 

 

 

94,517

 

Less income allocated to non-controlling interests

 

 

(1,706

)

 

 

(1,122

)

 

 

(6,133

)

 

 

(3,508

)

Net income attributable to common shareholders

 

$

29,844

 

 

$

29,483

 

 

$

607,904

 

 

$

91,009

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

 

 

 

 

 

 

 

Net income

 

$

31,550

 

 

$

30,605

 

 

$

614,037

 

 

$

94,517

 

Other comprehensive income

 

 

 

 

 

 

 

 

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

 

 

369

 

 

 

372

 

 

 

1,107

 

 

 

1,117

 

Comprehensive income

 

 

31,919

 

 

 

30,977

 

 

 

615,144

 

 

 

95,634

 

Less income allocated to non-controlling interests

 

 

(1,706

)

 

 

(1,122

)

 

 

(6,133

)

 

 

(3,508

)

Comprehensive income attributable to common shareholders

 

$

30,213

 

 

$

29,855

 

 

$

609,011

 

 

$

92,126

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total earnings per common share - basic

 

$

0.27

 

 

$

0.29

 

 

$

5.66

 

 

$

0.90

 

Total earnings per common share - diluted

 

 

0.27

 

 

 

0.29

 

 

 

5.62

 

 

 

0.90

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

108,466

 

 

 

103,071

 

 

 

107,314

 

 

 

101,119

 

Diluted

 

 

108,506

 

 

 

103,171

 

 

 

108,099

 

 

 

101,199

 

       

(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 September 30, 2022, we recognized $373.8 million of property revenue which consisted of approximately $332.0 million of rental revenue and approximately $41.8 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 $294.1 million recognized for the three months ended September 30, 2021, made up of approximately $259.1 million of rental revenue and approximately $35.0 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. For the nine months ended September 30, 2022, we recognized $1,046.8 million of property revenue which consisted of approximately $929.9 million of rental revenue and approximately $116.9 million of amounts received under contractual terms for other services considered to be non-lease contracts. This compares to the $838.2 million of property revenue recognized for the nine months ended September 30, 2021, made up of approximately $737.8 million of rental revenue and approximately $100.4 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 $9.8 million and $7.9 million for the three months ended September 30, 2022 and 2021, respectively and was $27.5 million and $23.2 million for the nine months ended September 30, 2022 and 2021, respectively.

 

(b) For both the three and nine months ended September 30, 2022 expenses include approximately $1.0 million in storm-related expenses related to Hurricane Ian.

 

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 September 30,

 

Nine Months Ended September 30,

 

 

2022

 

2021

 

2022

 

2021

FUNDS FROM OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to common shareholders (a)

 

$

29,844

 

 

$

29,483

 

 

$

607,904

 

 

$

91,009

 

Real estate depreciation and amortization

 

 

156,065

 

 

 

108,931

 

 

 

421,808

 

 

 

296,760

 

Adjustments for unconsolidated joint ventures

 

 

 

 

 

2,674

 

 

 

2,709

 

 

 

7,903

 

Income allocated to non-controlling interests

 

 

1,706

 

 

 

1,122

 

 

 

6,133

 

 

 

3,508

 

Gain on sale of operating property

 

 

 

 

 

 

 

 

(36,372

)

 

 

 

Gain on acquisition of unconsolidated joint venture interests

 

 

 

 

 

 

 

 

(474,146

)

 

 

 

Funds from operations

 

$

187,615

 

 

$

142,210

 

 

$

528,036

 

 

$

399,180

 

 

 

 

 

 

 

 

 

 

Less: recurring capitalized expenditures (b)

 

 

(26,001

)

 

 

(19,717

)

 

 

(61,682

)

 

 

(51,205

)

 

 

 

 

 

 

 

 

 

Adjusted funds from operations

 

$

161,614

 

 

$

122,493

 

 

$

466,354

 

 

$

347,975

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

Funds from operations - diluted

 

$

1.70

 

 

$

1.36

 

 

$

4.85

 

 

$

3.88

 

Adjusted funds from operations - diluted

 

 

1.47

 

 

 

1.17

 

 

 

4.28

 

 

 

3.38

 

Distributions declared per common share

 

 

0.94

 

 

 

0.83

 

 

 

2.82

 

 

 

2.49

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

 

 

 

FFO/AFFO - diluted

 

 

110,112

 

 

 

104,812

 

 

 

108,972

 

 

 

102,879

 

 

 

 

 

 

 

 

 

 

PROPERTY DATA

 

 

 

 

 

 

 

 

Total operating properties (end of period) (c)

 

 

171

 

 

 

172

 

 

 

171

 

 

 

172

 

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

 

 

58,433

 

 

 

58,682

 

 

 

58,433

 

 

 

58,682

 

Total operating apartment homes (weighted average)

 

 

58,427

 

 

 

51,011

 

 

 

55,881

 

 

 

50,202

 

         

(a) Net income attributable to common shareholders for the three and nine months ended September 30, 2022 included approximately $1.0 million of storm-related expenses related to Hurricane Ian.

 

(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)

 

 

Sep 30,

2022

Jun 30,

2022

Mar 31,

2022

Dec 31,

2021

Sep 30,

2021

ASSETS

 

 

 

 

 

Real estate assets, at cost

 

 

 

 

 

Land

$

1,706,396

 

$

1,695,118

 

$

1,343,209

 

$

1,349,594

 

$

1,317,431

 

Buildings and improvements

 

10,574,820

 

 

10,440,037

 

 

8,651,674

 

 

8,624,734

 

 

8,536,620

 

 

 

12,281,216

 

 

12,135,155

 

 

9,994,883

 

 

9,974,328

 

 

9,854,051

 

Accumulated depreciation

 

(3,709,487

)

 

(3,572,764

)

 

(3,436,969

)

 

(3,358,027

)

 

(3,319,206

)

Net operating real estate assets

 

8,571,729

 

 

8,562,391

 

 

6,557,914

 

 

6,616,301

 

 

6,534,845

 

Properties under development, including land

 

529,076

 

 

581,844

 

 

488,100

 

 

474,739

 

 

428,622

 

Investments in joint ventures

 

 

 

 

 

13,181

 

 

13,730

 

 

17,788

 

Total real estate assets

 

9,100,805

 

 

9,144,235

 

 

7,059,195

 

 

7,104,770

 

 

6,981,255

 

Accounts receivable – affiliates

 

13,258

 

 

13,258

 

 

13,258

 

 

18,664

 

 

18,686

 

Other assets, net (a)

 

231,645

 

 

249,865

 

 

254,763

 

 

234,370

 

 

252,079

 

Cash and cash equivalents

 

62,027

 

 

72,095

 

 

1,129,716

 

 

613,391

 

 

428,226

 

Restricted cash

 

6,390

 

 

6,563

 

 

5,778

 

 

5,589

 

 

5,321

 

Total assets

$

9,414,125

 

$

9,486,016

 

$

8,462,710

 

$

7,976,784

 

$

7,685,567

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Liabilities

 

 

 

 

 

Notes payable

 

 

 

 

 

Unsecured

$

3,173,198

 

$

3,222,252

 

$

3,671,309

 

$

3,170,367

 

$

3,169,428

 

Secured

 

514,843

 

 

514,698

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

212,558

 

 

195,070

 

 

169,973

 

 

191,651

 

 

191,648

 

Accrued real estate taxes

 

125,210

 

 

86,952

 

 

36,988

 

 

66,673

 

 

88,116

 

Distributions payable

 

103,620

 

 

103,621

 

 

100,880

 

 

88,786

 

 

87,919

 

Other liabilities (b)

 

176,334

 

 

186,143

 

 

197,021

 

 

193,052

 

 

194,634

 

Total liabilities

 

4,305,763

 

 

4,308,736

 

 

4,176,171

 

 

3,710,529

 

 

3,731,745

 

 

 

 

 

 

 

Equity

 

 

 

 

 

Common shares of beneficial interest

 

1,156

 

 

1,156

 

 

1,127

 

 

1,126

 

 

1,114

 

Additional paid-in capital

 

5,893,623

 

 

5,890,792

 

 

5,396,267

 

 

5,363,530

 

 

5,180,783

 

Distributions in excess of net income attributable to common shareholders

 

(525,127

)

 

(452,865

)

 

(848,074

)

 

(829,453

)

 

(954,880

)

Treasury shares

 

(329,027

)

 

(328,975

)

 

(329,521

)

 

(333,974

)

 

(334,066

)

Accumulated other comprehensive loss (c)

 

(2,632

)

 

(3,001

)

 

(3,370

)

 

(3,739

)

 

(4,266

)

Total common equity

 

5,037,993

 

 

5,107,107

 

 

4,216,429

 

 

4,197,490

 

 

3,888,685

 

Non-controlling interests

 

70,369

 

 

70,173

 

 

70,110

 

 

68,765

 

 

65,137

 

Total equity

 

5,108,362

 

 

5,177,280

 

 

4,286,539

 

 

4,266,255

 

 

3,953,822

 

Total liabilities and equity

$

9,414,125

 

$

9,486,016

 

$

8,462,710

 

$

7,976,784

 

$

7,685,567

 

 

 

 

 

 

 

 

(a) Includes net deferred charges of:

$

8,961

 

$

307

 

$

693

 

$

969

 

$

1,336

 

 

 

 

 

 

 

(b) Includes deferred revenues of:

$

331

 

$

358

 

$

384

 

$

334

 

$

208

 

 

 

 

 

 

 

(c) Represents the unrealized net loss and unamortized prior service costs on post retirement obligations, and unrealized net 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

September 30,

 

Nine Months Ended

September 30,

 

2022

2021

 

2022

2021

Net income attributable to common shareholders

$

29,844

 

$

29,483

 

 

$

607,904

 

$

91,009

 

Real estate depreciation and amortization

 

156,065

 

 

108,931

 

 

 

421,808

 

 

296,760

 

Adjustments for unconsolidated joint ventures

 

 

 

2,674

 

 

 

2,709

 

 

7,903

 

Income allocated to non-controlling interests

 

1,706

 

 

1,122

 

 

 

6,133

 

 

3,508

 

Gain on sale of operating property

 

 

 

 

 

 

(36,372

)

 

 

Gain on acquisition of unconsolidated joint venture interests

 

 

 

 

 

 

(474,146

)

 

 

Funds from operations

$

187,615

 

$

142,210

 

 

$

528,036

 

$

399,180

 

 

 

 

 

 

 

Less: recurring capitalized expenditures

 

(26,001

)

 

(19,717

)

 

 

(61,682

)

 

(51,205

)

 

 

 

 

 

 

Adjusted funds from operations

$

161,614

 

$

122,493

 

 

$

466,354

 

$

347,975

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

EPS diluted

 

108,506

 

 

103,171

 

 

 

108,099

 

 

101,199

 

FFO/AFFO diluted

 

110,112

 

 

104,812

 

 

 

108,972

 

 

102,879

 

 

 

 

 

 

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2022

2021

 

2022

2021

Total Earnings Per Common Share - Diluted

$

0.27

 

$

0.29

 

 

$

5.62

 

$

0.90

 

Real estate depreciation and amortization

 

1.42

 

 

1.04

 

 

 

3.84

 

 

2.88

 

Adjustments for unconsolidated joint ventures

 

 

 

0.02

 

 

 

0.02

 

 

0.07

 

Income allocated to non-controlling interests

 

0.01

 

 

0.01

 

 

 

0.05

 

 

0.03

 

Gain on sale of operating property

 

 

 

 

 

 

(0.33

)

 

 

Gain on acquisition of unconsolidated joint venture interests

 

 

 

 

 

 

(4.35

)

 

 

FFO per common share - Diluted

$

1.70

 

$

1.36

 

 

$

4.85

 

$

3.88

 

 

 

 

 

 

 

Less: recurring capitalized expenditures

 

(0.23

)

 

(0.19

)

 

 

(0.57

)

 

(0.50

)

 

 

 

 

 

 

AFFO per common share - Diluted

$

1.47

 

$

1.17

 

 

$

4.28

 

$

3.38

 

 

 

 

 

 

 

 

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, from real estate transactions not sold as of quarter close 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:

 

4Q22

Range

 

2022

Range

 

Low

High

 

Low

High

Expected earnings per common share - diluted

$

0.36

$

0.40

 

$

5.98

 

$

6.02

 

Expected real estate depreciation and amortization

 

1.34

 

1.34

 

 

5.18

 

 

5.18

 

Expected adjustments for unconsolidated joint ventures

 

 

 

 

0.02

 

 

0.02

 

Expected income allocated to non-controlling interests

 

0.02

 

0.02

 

 

0.07

 

 

0.07

 

(Gain) on acquisition of unconsolidated joint venture interests

 

 

 

 

(4.34

)

 

(4.34

)

Reported (gain) on sale of operating properties

 

 

 

 

(0.34

)

 

(0.34

)

Expected FFO per share - diluted

$

1.72

$

1.76

 

$

6.57

 

$

6.61

 

 

 

 

 

 

 

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 11 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

September 30,

 

Nine months ended

September 30,

 

2022

2021

 

2022

2021

Net income

$

31,550

 

$

30,605

 

 

$

614,037

 

$

94,517

 

Less: Fee and asset management income

 

(617

)

 

(3,248

)

 

 

(4,257

)

 

(7,717

)

Less: Interest and other income

 

(88

)

 

(443

)

 

 

(2,881

)

 

(1,032

)

Less: Income/(loss) on deferred compensation plans

 

6,275

 

 

843

 

 

 

28,450

 

 

(9,183

)

Plus: Property management expense

 

6,732

 

 

6,640

 

 

 

21,228

 

 

19,200

 

Plus: Fee and asset management expense

 

556

 

 

1,159

 

 

 

2,090

 

 

3,310

 

Plus: General and administrative expense

 

14,002

 

 

14,960

 

 

 

44,526

 

 

44,428

 

Plus: Interest expense

 

29,192

 

 

24,987

 

 

 

82,756

 

 

72,715

 

Plus: Depreciation and amortization expense

 

158,877

 

 

111,462

 

 

 

429,749

 

 

304,189

 

Plus: Expense/(benefit) on deferred compensation plans

 

(6,275

)

 

(843

)

 

 

(28,450

)

 

9,183

 

Less: Gain on sale of operating property

 

 

 

 

 

 

(36,372

)

 

 

Less: Gain on acquisition of unconsolidated joint venture interests

 

 

 

 

 

 

(474,146

)

 

 

Less: Equity in income of joint ventures

 

 

 

(2,540

)

 

 

(3,048

)

 

(6,652

)

Plus: Income tax expense

 

737

 

 

480

 

 

 

2,213

 

 

1,292

 

NOI

$

240,941

 

$

184,062

 

 

$

675,895

 

$

524,250

 

 

 

 

 

 

 

"Same Property" Communities

$

191,278

 

$

164,486

 

 

$

555,629

 

$

478,822

 

Non-"Same Property" Communities

 

48,979

 

 

14,378

 

 

 

115,908

 

 

30,803

 

Development and Lease-Up Communities

 

230

 

 

 

 

 

230

 

 

8

 

Hurricane Expenses

 

(1,000

)

 

 

 

 

(1,000

)

 

 

Other

 

1,454

 

 

5,198

 

 

 

5,128

 

 

14,617

 

NOI

$

240,941

 

$

184,062

 

 

$

675,895

 

$

524,250

 

 

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 acquisition 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, as well as income (loss) allocated to non-controlling interests. 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 and by 1.33 for nine month results. A reconciliation of net income attributable to common shareholders to Adjusted EBITDA is provided below:

 

Three months ended

September 30,

 

Nine months ended

September 30,

 

2022

2021

 

2022

2021

Net income attributable to common shareholders

$

29,844

 

$

29,483

 

 

$

607,904

 

$

91,009

 

Plus: Interest expense

 

29,192

 

 

24,987

 

 

 

82,756

 

 

72,715

 

Plus: Depreciation and amortization expense

 

158,877

 

 

111,462

 

 

 

429,749

 

 

304,189

 

Plus: Income allocated to non-controlling interests

 

1,706

 

 

1,122

 

 

 

6,133

 

 

3,508

 

Plus: Income tax expense

 

737

 

 

480

 

 

 

2,213

 

 

1,292

 

Plus: Hurricane expenses

 

1,000

 

 

 

 

 

1,000

 

 

 

Less: Gain on sale of operating property

 

 

 

 

 

 

(36,372

)

 

 

Less: Gain on acquisition of unconsolidated joint venture interests

 

 

 

 

 

 

(474,146

)

 

 

Less: Equity in income of joint ventures

 

 

 

(2,540

)

 

 

(3,048

)

 

(6,652

)

Adjusted EBITDA

$

221,356

 

$

164,994

 

 

$

616,189

 

$

466,061

 

Annualized Adjusted EBITDA

$

885,424

 

$

659,976

 

 

$

821,585

 

$

621,415

 

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

September 30,

 

Nine months ended

September 30,

 

 

 

2022

2021

 

2022

2021

Unsecured notes payable

 

 

$

3,211,216

 

$

3,169,116

 

 

$

3,260,272

 

$

3,168,181

 

Secured notes payable

 

 

 

514,795

 

 

 

 

 

343,148

 

 

 

Total debt

 

 

 

3,726,011

 

 

3,169,116

 

 

 

3,603,420

 

 

3,168,181

 

Less: Cash and cash equivalents

 

 

 

(29,853

)

 

(297,048

)

 

 

(250,438

)

 

(311,558

)

Net debt

 

 

$

3,696,158

 

$

2,872,068

 

 

$

3,352,982

 

$

2,856,623

 

Net Debt to Annualized Adjusted EBITDA:

 

 

 

Three months ended

September 30,

 

Nine months ended

September 30,

 

 

 

2022

2021

 

2022

2021

Net debt

 

 

$

3,696,158

 

$

2,872,068

 

 

$

3,352,982

 

$

2,856,623

 

Annualized Adjusted EBITDA

 

 

 

885,424

 

 

659,976

 

 

 

821,585

 

 

621,415

 

Net Debt to Annualized Adjusted EBITDA

 

 

4.2x

 

4.4x

 

 

4.1x

 

4.6x

 

 

Contacts

Kim Callahan, 713-354-2549 

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