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 Camden Property Trust Announces First Quarter 2020 Operating Results
   Thursday, May 07, 2020 4:30:00 PM ET

HOUSTON--(BUSINESS WIRE)--Camden Property Trust (NYSE:CPT) (the "Company") announced today operating results for the three months ended March 31, 2020. Net Income Attributable to Common Shareholders (“EPS”), Funds from Operations (“FFO”), and Adjusted Funds from Operations (“AFFO”) for the three months ended March 31, 2020 are detailed below. A reconciliation of EPS to FFO is included in the financial tables accompanying this press release.

“We are pleased to report strong performance for the first quarter of 2020, with same property growth and FFO per share both slightly better than anticipated,” said Richard J. Campo, Camden’s Chairman and CEO. “Despite the challenging and unprecedented circumstances we all currently face, Camden is committed to providing a great place to live for our residents and a great place to work for our team members, and our top priority is the continued safety and well-being of those groups.”

 

Three Months Ended

 

March 31

Per Diluted Share

2020

2019

EPS

$0.43

$0.40

FFO

$1.35

$1.22

AFFO

$1.20

$1.12

 

Quarterly Growth

Sequential Growth

Same Property Results

1Q20 vs. 1Q19

1Q20 vs. 4Q19

Revenues

3.7%

0.4%

Expenses

0.1%

3.4%

Net Operating Income ("NOI")

5.7%

(1.1)%

Same Property Results

1Q20

1Q19

4Q19

Occupancy

96.1%

95.9%

96.2%



For 2020, the Company defines same property communities as communities owned and stabilized since January 1, 2019, 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.

Same Property Scheduled Rents*

April 2020

April 2019

1Q20

Collected

94.3%

98.6%

97.9%

Deferred/Payment Plan Arranged

2.5%

Delinquent

3.2%

1.4%

2.1%

*Rent is recognized as earned. The Company evaluates collectability on an ongoing basis and any accounts considered uncollectible are subsequently reserved against property revenues.

Retail revenues are not included above and comprise approximately 0.8% of total property revenues. The Company collected 41% of its retail billings in April 2020.

New Lease and Renewal Data (1) (2)

April 2020

April 2019

1Q20

New Lease Rates

(2.5)%

2.9%

0.5%

Renewal Rates

0.1%

5.6%

4.2%

Blended Rates

(0.8)%

4.1%

2.5%

 

 

 

 

New Leases Signed

1,322

2,025

1,471

Renewals Signed

2,485

1,731

1,717

Total Leases Signed

3,807

3,756

3,188

 

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

(2) 1Q20 data represents average monthly leases signed during the quarter.

Occupancy and Turnover Data

April 2020

April 2019

1Q20

Occupancy

95.6%

96.0%

96.1%

Annualized Gross Turnover

47%

49%

46%

Annualized Net Turnover

37%

42%

37%

During the quarter, lease-up was completed at Camden Grandview II in Charlotte, NC and leasing began at Camden Downtown I in Houston, TX. In addition, the Company elected to temporarily suspend construction on Camden Atlantic, a previously early-stage new development in Plantation, FL.

Development Communities - Construction Completed and Projects in Lease-Up ($ in millions)

 

 

Total

Total

% Leased

Community Name

Location

Homes

Cost

as of 5/6/2020

Camden North End I

Phoenix, AZ

441

$98.8

81%

Total

 

441

$98.8

81%

Development Communities - Construction Ongoing ($ in millions)

 

 

Total

Total

% Leased

Community Name

Location

Homes

Budget

as of 5/6/2020

Camden Downtown I

Houston, TX

271

$132.0

16%

Camden RiNo

Denver, CO

233

75.0

 

Camden Lake Eola

Orlando, FL

360

120.0

 

Camden Buckhead

Atlanta, GA

366

160.0

 

Camden North End II

Phoenix, AZ

343

90.0

 

Camden Hillcrest

San Diego, CA

132

95.0

 

Camden Cypress Creek II (JV)

Cypress, TX

234

38.0

 

Total

 

1,939

$710.0

 

During the quarter, Camden acquired 4.9 acres of land in Raleigh, NC for $18.2 million for the future development of approximately 355 apartment homes. The Company also sold approximately 4.7 acres of land adjacent to one of our operating communities in Raleigh, NC for approximately $0.8 million and recognized a gain of $0.4 million.

Subsequent to quarter-end, the Company issued $750.0 million of senior unsecured notes under its existing shelf registration statement. These 10-year notes were offered to the public at 99.929% of par value with a coupon of 2.800%. Camden received net proceeds of approximately $743.1 million, net of underwriting discounts and other estimated offering expenses.

As of April 30, 2020, the Company had approximately $1.45 billion of liquidity comprised of $562 million in cash and cash equivalents and no amounts outstanding on its $900 million unsecured credit facility. The Company has no scheduled debt maturities until 2022, and had $235 million left to fund under its existing wholly-owned development pipeline at quarter-end.

Subsequent to quarter-end, Camden announced two Resident Relief Funds for residents experiencing financial losses caused by the COVID-19 pandemic. The Resident Relief Funds were intended to help residents impacted by COVID-19 by providing financial assistance for living expenses such as food, utilities, medical expenses, insurance, childcare or transportation. To date, the Resident Relief Funds have paid approximately $10.4 million to approximately 8,200 Camden residents.

“We are proud that we were able to provide meaningful financial assistance to so many of our residents through our Camden Cares Resident Relief Fund. Our timely response provided a bridge to our hardest hit residents to transition to other forms of assistance such as stimulus checks, unemployment benefits and Payroll Protection Plan payments”, said Keith Oden, Camden’s Executive Vice-Chairman. “Below we have included the communication we sent to our residents recapping the Camden Cares Resident Relief Fund as well as one of the hundreds of heartfelt expressions of gratitude we received from our residents.”

Dear Camden Residents,

First and foremost, it is our sincere hope you and your loved ones have remained safe and in good health during the ongoing COVID-19 outbreak. The safety and health of Camden’s residents and our employees have always been and will remain our top priority. We also have great concern for the financial hardship the pandemic has imposed on many of our residents. That concern led us to create the $5,000,000 Camden Cares Resident Relief Program.

As we shared last week, we have already approved and delivered funds to 2,367 Camden residents with a total dollar value of $4,540,000. This left us with $460,000 remaining of our initial $5,000,000 fund. The balance was due to some residents not requesting the maximum grant available and the denial of some applications which did not meet the criteria. To fulfill our commitment and distribute the full $5,000,000, this past Monday, April 20, 2020, we re-opened the website for 30 minutes to allow additional residents to submit applications. All residents who submitted a qualified application demonstrating loss of income due to COVID-19 were to split the remaining $460,000. Since Monday, we reviewed and approved an additional 5,819 applications, which would have resulted in a grant of $79 per person. However, due to the unprecedented financial need demonstrated by so many residents, Camden increased our initial commitment of $5,000,000 to $10,359,000. This will allow all 5,819 approved applications from this past Monday to receive grants equaling $1,000 each.

We are pleased that this increase in our Camden Cares Resident Relief Fund to $10,359,000 has provided financial support to 8,186 Camden residents. If you applied for relief on April 20th, you will receive an email of your approval or denial later today. We appreciate you as a resident and look forward to continuing to provide you with living excellence for many years to come. We are all in this together.

Team Camden

I just wanted to write and say thank you so much. Reading this email literally brought me to tears, and it’s a true privilege to live in a Camden owned property. Never in my life have I seen a company willingly double its promised commitment. You didn’t have to give everyone who applied $1,000, you could have just fulfilled your commitment of $79 each and called it a day but you didn’t. You went above and beyond and I’m literally moved to tears from the kindness and generosity your company has shown. I have lived in two different Camden locations since 2016, and this email has encouraged me that I definitely picked the right place to live. I haven’t received word on whether or not we are approved yet, but even before we get an answer I just wanted to say thank you for what you’ve done.

You have a special place in our hearts forever and we are just floored by Camden. I might be crying off and on today, but after so much craziness in this world, it’s moments like these where you just have to stop and be grateful. You see the struggles of people, and Camden is a company for PEOPLE. You see us not just as a dollar sign and our hearts are touched. Thank you for everything and for helping so many people who have lost jobs in this time.

From The Demir Family (Samet + Cemile) at Camden College Park

In April 2020, we made available up to $1.0 million to help our employees who have incurred additional expenses or are dealing with financial challenges due to the impact of COVID-19, with our executives donating up to $250,000 and the remaining $750,000 donated by the Company.

In May 2020, Camden's Chairman and CEO, and Executive Vice-Chairman each agreed to voluntarily reduce the amount of his annual bonuses (cash or shares) which may be awarded in the future by $500,000. The aggregate $1.0 million compensation reduction will serve as a contribution to the Resident Relief Funds and to a $3.0 million bonus paid in May 2020 to our on-site and construction employees of the Company who have continued to provide ongoing essential services during the COVID-19 pandemic.

Given the uncertainty surrounding the social and economic impact from COVID-19, Camden has withdrawn its 2020 earnings guidance and will not be providing an update to its financial outlook at this time.

Friday, May 8, 2020 at 10:00 AM CT
Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061
Passcode: 9204638
Webcast: https://services.choruscall.com/links/cpt200508.html

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.

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.

Camden Property Trust, an S&P 400 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 164 properties containing 56,112 apartment homes across the United States. Upon completion of 7 properties currently under development, the Company’s portfolio will increase to 58,051 apartment homes in 171 properties. Camden has been recognized as one of the 100 Best Companies to Work For® by FORTUNE magazine for 13 consecutive years, most recently ranking #18. The Company also received a Glassdoor Employees' Choice Award in 2020, ranking #25 for large U.S. companies.

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 March 31,

 

2020

2019

 

 

Property revenues (a)

$

265,879

 

$

248,567

 

 

 

 

Property expenses

 

 

Property operating and maintenance

 

59,956

 

 

56,948

 

Real estate taxes

 

34,180

 

 

33,890

 

Total property expenses

 

94,136

 

 

90,838

 

 

 

 

Non-property income

 

 

Fee and asset management

 

2,527

 

 

1,843

 

Interest and other income

 

329

 

 

298

 

Income/(Loss) on deferred compensation plans

 

(14,860

)

 

10,356

 

Total non-property income (loss)

 

(12,004

)

 

12,497

 

 

 

 

Other expenses

 

 

Property management

 

6,527

 

 

6,657

 

Fee and asset management

 

843

 

 

1,184

 

General and administrative

 

13,233

 

 

13,308

 

Interest

 

19,707

 

 

20,470

 

Depreciation and amortization

 

91,859

 

 

80,274

 

Expense/(Benefit) on deferred compensation plans

 

(14,860

)

 

10,356

 

Total other expenses

 

117,309

 

 

132,249

 

 

 

 

Gain on sale of land

 

382

 

 

Equity in income of joint ventures

 

2,122

 

 

1,912

 

Income from continuing operations before income taxes

 

44,934

 

 

39,889

 

Income tax expense

 

(467

)

 

(168

)

Net income

 

44,467

 

 

39,721

 

Less income allocated to non-controlling interests

 

(1,183

)

 

(1,108

)

Net income attributable to common shareholders

$

43,284

 

$

38,613

 

 

 

 

 

 

Net income

$

44,467

 

$

39,721

 

Other comprehensive income

 

 

Unrealized (loss) on cash flow hedging activities

 

 

(5,938

)

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

 

366

 

 

(375

)

Comprehensive income

 

44,833

 

 

33,408

 

Less income allocated to non-controlling interests

 

(1,183

)

 

(1,108

)

Comprehensive income attributable to common shareholders

$

43,650

 

$

32,300

 

 

 

 

 

 

 

 

 

Total earnings per common share - basic

$

0.43

 

$

0.40

 

Total earnings per common share - diluted

 

0.43

 

 

0.40

 

 

 

 

Weighted average number of common shares outstanding:

 

 

Basic

 

99,298

 

 

96,892

 

Diluted

 

99,380

 

 

97,041

 

(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 March 31, 2020, we recognized $265.9 million of property revenue which consisted of approximately $236.6 million of rental revenue and approximately $29.3 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 $248.6 million recognized for the three months ended March 31, 2019, made up of approximately $220.1 million of rental revenue and approximately $28.5 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 $6.9 million and $6.5 million for the three months ended March 31, 2020 and 2019, respectively.

 

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 March 31,

 

2020

2019

 

 

 

 

 

Net income attributable to common shareholders

$

43,284

 

$

38,613

 

Real estate depreciation and amortization

 

89,511

 

 

78,675

 

Adjustments for unconsolidated joint ventures

 

2,242

 

 

2,231

 

Income allocated to non-controlling interests

 

1,282

 

 

1,144

 

Funds from operations

$

136,319

 

$

120,663

 

 

 

 

Less: recurring capitalized expenditures (a)

 

(14,825

)

 

(9,655

)

 

 

 

Adjusted funds from operations

$

121,494

 

$

111,008

 

 

 

 

 

 

Funds from operations - diluted

$

1.35

 

$

1.22

 

Adjusted funds from operations - diluted

 

1.20

 

 

1.12

 

Distributions declared per common share

 

0.83

 

 

0.80

 

 

 

 

Weighted average number of common shares outstanding:

 

 

FFO/AFFO - diluted

 

101,128

 

 

98,797

 

 

 

 

 

 

Total operating properties (end of period) (b)

 

164

 

 

164

 

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

 

56,112

 

 

55,945

 

Total operating apartment homes (weighted average)

 

49,017

 

 

47,957

 

(a)

Capital expenditures necessary to help preserve the value of and maintain the functionality at our communities.

(b)

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)

 

Mar 31,
2020

Dec 31,
2019

Sep 30,
2019

Jun 30,
2019

Mar 31,
2019

ASSETS

 

 

 

 

 

Real estate assets, at cost

 

 

 

 

 

Land

$

1,206,130

 

$

1,199,384

 

$

1,158,342

 

$

1,158,342

 

$

1,127,485

 

Buildings and improvements

 

7,547,150

 

 

7,404,090

 

 

7,242,256

 

 

7,192,644

 

 

7,057,101

 

 

 

8,753,280

 

 

8,603,474

 

 

8,400,598

 

 

8,350,986

 

 

8,184,586

 

Accumulated depreciation

 

(2,770,848

)

 

(2,686,025

)

 

(2,638,693

)

 

(2,558,690

)

 

(2,479,875

)

Net operating real estate assets

 

5,982,432

 

 

5,917,449

 

 

5,761,905

 

 

5,792,296

 

 

5,704,711

 

Properties under development, including land

 

467,288

 

 

512,319

 

 

440,917

 

 

397,418

 

 

307,981

 

Investments in joint ventures

 

22,318

 

 

20,688

 

 

21,715

 

 

21,313

 

 

21,955

 

Total real estate assets

 

6,472,038

 

 

6,450,456

 

 

6,224,537

 

 

6,211,027

 

 

6,034,647

 

Accounts receivable – affiliates

 

20,344

 

 

21,833

 

 

23,170

 

 

22,297

 

 

21,337

 

Other assets, net (a)

 

196,544

 

 

248,716

 

 

238,014

 

 

233,335

 

 

217,663

 

Cash and cash equivalents

 

22,277

 

 

23,184

 

 

157,239

 

 

149,551

 

 

6,092

 

Restricted cash

 

4,367

 

 

4,315

 

 

5,686

 

 

5,392

 

 

5,655

 

Total assets

$

6,715,570

 

$

6,748,504

 

$

6,648,646

 

$

6,621,602

 

$

6,285,394

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Liabilities

 

 

 

 

 

Notes payable

 

 

 

 

 

Unsecured

$

2,606,876

 

$

2,524,099

 

$

2,432,137

 

$

2,431,336

 

$

2,079,136

 

Secured

 

 

 

45,250

 

 

45,467

 

 

45,683

 

Accounts payable and accrued expenses

 

156,841

 

 

171,719

 

 

170,689

 

 

128,371

 

 

126,964

 

Accrued real estate taxes

 

32,365

 

 

54,408

 

 

74,658

 

 

59,525

 

 

30,891

 

Distributions payable

 

84,112

 

 

80,973

 

 

80,764

 

 

80,767

 

 

80,771

 

Other liabilities (b)(c)

 

164,052

 

 

215,581

 

 

187,367

 

 

187,368

 

 

195,629

 

Total liabilities

 

3,044,246

 

 

3,046,780

 

 

2,990,865

 

 

2,932,834

 

 

2,559,074

 

 

 

 

 

 

 

Equity

 

 

 

 

 

Common shares of beneficial interest

 

1,069

 

 

1,069

 

 

1,065

 

 

1,065

 

 

1,064

 

Additional paid-in capital

 

4,569,995

 

 

4,566,731

 

 

4,538,422

 

 

4,533,667

 

 

4,527,659

 

Distributions in excess of net income attributable to common shareholders

 

(623,570

)

 

(584,167

)

 

(599,615

)

 

(563,834

)

 

(526,856

)

Treasury shares, at cost

 

(342,778

)

 

(348,419

)

 

(348,556

)

 

(348,480

)

 

(349,655

)

Accumulated other comprehensive income (loss) (d)

 

(6,163

)

 

(6,529

)

 

(6,438

)

 

(6,795

)

 

616

 

Total common equity

 

3,598,553

 

 

3,628,685

 

 

3,584,878

 

 

3,615,623

 

 

3,652,828

 

Non-controlling interests

 

72,771

 

 

73,039

 

 

72,903

 

 

73,145

 

 

73,492

 

Total equity

 

3,671,324

 

 

3,701,724

 

 

3,657,781

 

 

3,688,768

 

 

3,726,320

 

Total liabilities and equity

$

6,715,570

 

$

6,748,504

 

$

6,648,646

 

$

6,621,602

 

$

6,285,394

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Includes net deferred charges of:

$

3,399

 

$

3,658

 

$

4,358

 

$

4,345

 

$

5,081

 

 

 

 

 

 

 

(b) Includes net asset/(liability) and interest receivable/(payable) fair value of derivative instruments:

$—

 

$—

 

$—

 

$—

 

($

13,370

)

 

 

 

 

 

 

(c) Includes deferred revenues of:

$

375

 

$

408

 

$

497

 

$

581

 

$

659

 

 

 

 

 

 

 

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

 

 

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:

 

 

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 March 31,

 

2020

2019

Net income attributable to common shareholders

$

43,284

 

$

38,613

 

Real estate depreciation and amortization

 

89,511

 

 

78,675

 

Adjustments for unconsolidated joint ventures

 

2,242

 

 

2,231

 

Income allocated to non-controlling interests

 

1,282

 

 

1,144

 

Funds from operations

$

136,319

 

$

120,663

 

 

 

 

Less: recurring capitalized expenditures

 

(14,825

)

 

(9,655

)

 

 

 

Adjusted funds from operations

$

121,494

 

$

111,008

 

 

 

 

Weighted average number of common shares outstanding:

 

 

EPS diluted

 

99,380

 

 

97,041

 

FFO/AFFO diluted

 

101,128

 

 

98,797

 

 

 

 

 

Three Months Ended March 31,

 

2020

2019

Total Earnings Per Common Share - Diluted

$

0.43

 

$

0.40

 

Real estate depreciation and amortization

 

0.89

 

 

0.80

 

Adjustments for unconsolidated joint ventures

 

0.02

 

 

0.02

 

Income allocated to non-controlling interests

 

0.01

 

 

FFO per common share - Diluted

$

1.35

 

$

1.22

 

 

 

 

Less: recurring capitalized expenditures

 

(0.15

)

 

(0.10

)

 

 

 

AFFO per common share - Diluted

$

1.20

 

$

1.12

 

 

CAMDEN

 

NON-GAAP FINANCIAL MEASURES

 

 

DEFINITIONS & RECONCILIATIONS

 

 

(In thousands, except per share amounts)

(Unaudited)

 

 

 

 

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 supplemental. 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 March 31,

 

2020

2019

Net income

$

44,467

 

$

39,721

 

Less: Fee and asset management income

 

(2,527

)

 

(1,843

)

Less: Interest and other income

 

(329

)

 

(298

)

Less: (Income)/Loss on deferred compensation plans

 

14,860

 

 

(10,356

)

Plus: Property management expense

 

6,527

 

 

6,657

 

Plus: Fee and asset management expense

 

843

 

 

1,184

 

Plus: General and administrative expense

 

13,233

 

 

13,308

 

Plus: Interest expense

 

19,707

 

 

20,470

 

Plus: Depreciation and amortization expense

 

91,859

 

 

80,274

 

Plus: Expense/(Benefit) on deferred compensation plans

 

(14,860

)

 

10,356

 

Less: Gain on sale of land

 

(382

)

 

Less: Equity in income of joint ventures

 

(2,122

)

 

(1,912

)

Plus: Income tax expense

 

467

 

 

168

 

NOI

$

171,743

 

$

157,729

 

 

 

 

"Same Property" Communities

$

149,104

 

$

141,043

 

Non-"Same Property" Communities

 

19,968

 

 

13,118

 

Development and Lease-Up Communities

 

1,235

 

 

779

 

Dispositions/Other

 

1,436

 

 

2,789

 

NOI

$

171,743

 

$

157,729

 

CAMDEN

 

NON-GAAP FINANCIAL MEASURES

 

 

DEFINITIONS & RECONCILIATIONS

 

 

(In thousands, except per share amounts)

(Unaudited)

 

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 sale of unconsolidated joint venture interests, gain on acquisition of controlling interest in joint ventures, gain on sale of operating properties including land, net of tax, loss on early retirement of debt and 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. A reconciliation of net income attributable to common shareholders to Adjusted EBITDA is provided below:

 

 

Three months ended March 31,

 

2020

2019

Net income attributable to common shareholders

$

43,284

 

$

38,613

 

Plus: Interest expense

 

19,707

 

 

20,470

 

Plus: Depreciation and amortization expense

 

91,859

 

 

80,274

 

Plus: Income allocated to non-controlling interests

 

1,183

 

 

1,108

 

Plus: Income tax expense

 

467

 

 

168

 

Less: Gain on sale of land

 

(382

)

 

Less: Equity in income of joint ventures

 

(2,122

)

 

(1,912

)

Adjusted EBITDA

$

153,996

 

$

138,721

 

Annualized Adjusted EBITDA

$

615,984

 

$

554,884

 

 

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:

 

 

Average monthly balance for

 

the three months ended March 31,

 

2020

2019

Unsecured notes payable

$

2,633,950

 

$

2,081,233

 

Secured notes payable

 

 

271,936

 

Total debt

 

2,633,950

 

 

2,353,169

 

Less: Cash and cash equivalents

 

(20,184

)

 

(138,748

)

Net debt

$

2,613,766

 

$

2,214,421

 

 

 

Three months ended March 31,

 

2020

2019

Net debt

$

2,613,766

$

2,214,421

Annualized Adjusted EBITDA

 

615,984

 

554,884

Net Debt to Annualized Adjusted EBITDA

4.2x

4.0x

 

Kim Callahan, 713-354-2549

Source: Camden Property Trust



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