Camden Property Trust (NYSE:CPT) announced that its funds from
operations ("FFO") for the first quarter of 2006 totaled $0.88 per
diluted share or $51.8 million, as compared to $1.10 per diluted
share or $54.4 million reported for the same period in 2005. FFO
for the three months ended March 31, 2005 included a $0.49 per
diluted share impact from the sale of technology investments, and a
$0.28 per diluted share charge for transaction compensation and
merger expenses. Net Income ("EPS") The Company reported net income
("EPS") of $41.4 million or $0.75 per diluted share for the first
quarter of 2006 compared to $166.7 million or $3.40 per diluted
share for the same period in 2005. EPS for the three months ended
March 31, 2006 included a $0.50 per diluted share impact from gain
on sale of properties and discontinued operations. EPS for the
three months ended March 31, 2005 included a $2.97 per diluted
share impact from gain on sale of properties and discontinued
operations, $0.49 per diluted share income from the sale of
technology investments, and a $0.28 per diluted share charge for
transaction compensation and merger expenses. A reconciliation of
net income to FFO is included in the financial tables accompanying
this press release. Same-Property Results For the 49,557 apartment
homes included in consolidated same-property results, first quarter
2006 same-property net operating income ("NOI") growth was 10.2%
compared to the first quarter of 2005, with revenues increasing
8.3% and operating expenses increasing 5.4%. On a sequential basis,
first quarter 2006 same-property NOI increased 3.7% compared to
fourth quarter 2005, with revenues increasing 2.2% and expenses
declining 0.1% compared to the prior quarter. Same-property
physical occupancy levels for the combined portfolio averaged 96.0%
during the first quarter of 2006, compared to 93.8% in the first
quarter of 2005 and 96.2% in the fourth quarter of 2005. The
Company defines same-property communities as communities owned by
either Camden or Summit Properties Inc. ("Summit") and stabilized
as of January 1, 2005, excluding properties held for sale. 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. Development Activity Camden
announced two new development starts during the quarter: Camden
City Centre in Houston, TX, with 379 apartment homes; and Camden
Dulles Station in Herndon, VA, with 368 apartment homes. Total
budgeted costs for those projects are $54.0 million and $77.0
million, respectively, with initial occupancy expected to occur in
mid- to late-2007. The Company also announced the start of two new
joint venture developments: Camden Main & Jamboree in Irvine,
CA, a $107.1 million community with 290 apartment homes; and Camden
Plaza in Houston, TX, a $42.9 million community with 271 apartment
homes. (See press release dated March 3, 2006 for additional
information on these joint venture developments). As of March 31,
2006, Camden had one completed apartment community in lease-up:
Camden Farmers Market II in Dallas, TX, a $29.5 million project
that is currently 87% leased. The Company's current development
pipeline includes 11 wholly-owned communities with 3,958 apartment
homes and a total budgeted cost of $719.6 million, and two joint
venture communities with 561 apartment homes and a total budgeted
cost of $150.0 million. Of those 13 communities, five are currently
in lease-up. Camden Dilworth in Charlotte, NC is currently 61%
leased; Camden Fairfax Corner in Fairfax, VA is currently 54%
leased; Camden Westwind in Ashburn, VA is currently 46% leased;
Camden Manor Park in Raleigh, NC is currently 31% leased; and
Camden Clearbrook in Frederick, MD is currently 4% leased.
Acquisition/Disposition Activity During the quarter, Camden
acquired the remaining joint venture membership interest in Camden
Westwind, a 464-home apartment community under development in
Ashburn, VA. Total budgeted cost for Camden Westwind is projected
to be $97.6 million when construction is completed. Dispositions
for the quarter included two wholly-owned apartment communities:
Camden Highlands, a 160-home apartment community in Plano, TX for
$9.7 million, and Camden View, a 365-home apartment community in
Tucson, AZ for $31.3 million. Gain on sale of those two properties
totaled $27.4 million. The Company also sold two joint venture
communities during the quarter for a combined total of $47.5
million. Camden's pro-rata share of those dispositions totaled
$11.9 million, and the Company recognized a $1.8 million gain as a
result of the sales. Properties and Land Held for Sale At March 31,
2006, Camden had eight operating communities consisting of 3,691
apartment homes classified as held for sale. These properties
included: Camden Live Oaks, a 770-home apartment community in
Tampa, FL; Camden Trails, a 264-home apartment community in Dallas,
TX; Camden Oaks, a 446-home apartment community in Dallas, TX;
Camden Pass, a 456-home apartment community in Tucson, AZ; Camden
Crossing, a 366-home apartment community in Houston, TX; Camden
Wilshire, a 536-home apartment community in Houston, TX; Camden
Wyndham, a 448-home apartment community in Houston, TX; and Summit
Brickell, a 405-home apartment community in Miami, FL. The Company
also had 13.9 acres of undeveloped land in Southeast Florida,
Dallas, TX and Long Beach, CA classified as held for sale at
quarter-end. Subsequent to quarter-end, the Company disposed of
Camden Trails for $8.8 million and Camden Pass for $20.3 million.
Earnings Guidance Camden raised its earnings guidance for 2006 FFO
by $0.05 per diluted share. Full-year 2006 FFO is now expected to
be $3.50 to $3.70 per diluted share. The Company also provided
guidance of $0.85 to $0.90 per diluted share for second quarter
2006 FFO. EPS is expected to be $1.35 to $1.55 per diluted share
for full-year 2006, and $0.19 to $0.24 per diluted share for the
second quarter of 2006, excluding any future gains from property or
land sales. The Company's 2006 earnings guidance is based on
projections of same-property revenue growth between 5.0% and 6.0%,
same-property expense growth between 4.5% and 5.5%, same-property
NOI growth between 5.0% and 7.0%, acquisitions of $100 to $200
million, dispositions of $275 to $400 million and future
development starts of $200 to $300 million. 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. Conference
Call The Company will hold a conference call on Friday, May 5, 2006
at 10:00 a.m. Central Time to review its first quarter results and
discuss its outlook for future performance. To participate in the
call, please dial 877-407-0782 (domestic) or 201-689-8567
(international) by 9:50 a.m. Central Time and request the Camden
Property Trust First Quarter 2006 Earnings Call, or join the live
webcast of the conference call by accessing the Investor Relations
section of the Company's website at www.camdenliving.com.
Supplemental financial information is available in the Investor
Relations section of the Company's website under Earnings Releases
or by calling Camden's Investor Relations Department at
800-922-6336. 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. About Camden Camden
Property Trust is a real estate company engaged in the ownership,
development, acquisition, management and disposition of multifamily
apartment communities. Camden owns interests in and operates 185
properties containing 63,664 apartment homes across the United
States. Upon completion of 13 properties under development, the
Company's portfolio will increase to 68,183 apartment homes in 198
properties. For additional information, please contact Camden's
Investor Relations Department at 800-922-6336 or 713-354-2787 or
access our website at www.camdenliving.com. -0- *T CAMDEN OPERATING
RESULTS (In thousands, except per share and property data amounts)
----------------------------------------------------------------------
(Unaudited) Three Months Ended March 31, -------------------------
OPERATING DATA 2006 2005 (a) --------------
------------------------- Property revenues Rental revenues
$131,426 $100,687 Other property revenues 12,410 9,162
------------------------- Total property revenues 143,836 109,849
Property expenses Property operating and maintenance 38,077 31,521
Real estate taxes 15,750 12,219 ------------------------- Total
property expenses 53,827 43,740 Non-property income Fee and asset
management 2,477 7,306 Sale of technology investments - 24,199
Interest and other income 753 3,223 Income on deferred compensation
plans 50 23 ------------------------- Total non-property income
3,280 34,751 Other expenses Property management 4,226 3,220 Fee and
asset management 1,366 1,948 General and administrative 7,414 5,276
Transaction compensation and merger expenses - 13,824 Interest
31,037 23,501 Depreciation and amortization 37,053 30,855
Amortization of deferred financing costs 1,047 1,221 Expense on
deferred compensation plans 50 23 ------------------------- Total
other expenses 82,193 79,868 ------------------------- Income from
continuing operations before gain on sale of properties, equity in
income of joint ventures and minority interests 11,096 20,992 Gain
on sale of properties, including land 499 132,117 Equity in income
of joint ventures 2,317 110 Income allocated to minority interests
Distributions on perpetual preferred units (1,750) (1,778) Original
issuance costs on redeemed perpetual preferred units - (365) Income
allocated to common units and other minority interests (1,279)
(1,131) ------------------------- Income from continuing operations
10,883 149,945 Income from discontinued operations 3,965 2,342 Gain
on sale of discontinued operations 27,392 14,391 Income from
discontinued operations allocated to common units (797) (14)
------------------------- Net income $41,443 $166,664
========================= PER SHARE DATA -------------- Net income
- basic $0.76 $3.63 Net income - diluted 0.75 3.40 Income from
continuing operations - basic 0.20 3.27 Income from continuing
operations - diluted 0.20 3.06 Weighted average number of common
and common equivalent shares outstanding: Basic 54,290 45,900
Diluted 55,474 49,374 PROPERTY DATA ------------- Total operating
properties (end of period)(b) 187 192 Total operating apartment
homes in operating properties (end of period)(b) 64,384 66,446
Total operating apartment homes (weighted average) 57,177 50,656
Total operating apartment homes - excluding discontinued operations
(weighted average) 53,203 45,987 (a) The Company's 2005 financial
results include the results of Summit subsequent to February 28,
2005. (b) Includes joint ventures and properties held for sale.
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, -------------------------
FUNDS FROM OPERATIONS 2006 2005 (a) ---------------------
------------------------- Net income $41,443 $166,664 Real estate
depreciation and amortization from continuing operations 36,399
30,229 Real estate depreciation from discontinued operations 346
2,229 Adjustments for unconsolidated joint ventures 781 668 Income
from continuing operations allocated to common units 1,228 1,131
Income from discontinued operations allocated to common units 797
14 (Gain) on sale of operating properties - (132,117) (Gain) on
sale of discontinued operations (27,392) (14,380) (Gain) on sale of
joint venture properties (1,763) - ------------------------- Funds
from operations - diluted $51,839 $54,438 =========================
PER SHARE DATA -------------- Funds from operations - diluted $0.88
$1.10 Cash distributions 0.66 0.64 Weighted average number of
common and common equivalent shares outstanding: FFO - diluted
58,988 49,374 PROPERTY DATA ------------- Total operating
properties (end of period) (b) 187 192 Total operating apartment
homes in operating properties (end of period)(b) 64,384 66,446
Total operating apartment homes (weighted average) 57,177 50,656
Total operating apartment homes - excluding discontinued operations
(weighted average) 53,203 45,987 (a) The Company's 2005 financial
results include the results of Summit subsequent to February 28,
2005. (b) Includes joint ventures and properties held for sale.
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, Dec 31, Sep 30, 2006 2005 2005
--------------------------------- ASSETS Real estate assets, at
cost Land $664,219 $646,854 $660,748 Buildings and improvements
3,892,700 3,840,969 3,881,682 ---------------------------------
4,556,919 4,487,823 4,542,430 Accumulated depreciation (732,984)
(716,650) (713,991) --------------------------------- Net operating
real estate assets 3,823,935 3,771,173 3,828,439 Properties under
development, including land 419,843 372,976 377,787 Investment in
joint ventures 8,199 6,096 6,937 Properties held for sale 188,477
172,112 51,741 --------------------------------- Total real estate
assets 4,440,454 4,322,357 4,264,904 Accounts receivable -
affiliates 33,361 34,084 35,313 Notes receivable Affiliates 22,531
11,916 11,505 Other 13,264 13,261 24,865 Other assets, net (a)
102,269 99,516 100,080 Cash and cash equivalents 1,256 1,576 1,076
Restricted cash 5,269 5,089 5,829 ---------------------------------
Total assets $4,618,404 $4,487,799 $4,443,572
================================= LIABILITIES AND SHAREHOLDERS'
EQUITY Liabilities Notes payable Unsecured $2,118,403 $2,007,164
$1,903,094 Secured 623,250 625,927 661,723 Accounts payable and
accrued expenses 116,215 108,979 102,231 Accrued real estate taxes
17,818 26,070 39,740 Other liabilities (b) 98,327 88,811 84,835
Distributions payable 40,612 38,922 38,933
--------------------------------- Total liabilities 3,014,625
2,895,873 2,830,556 Commitments and contingencies Minority
interests Perpetual preferred units 97,925 97,925 97,925 Common
units 113,034 112,637 115,190 Other minority interests 10,512
10,461 10,425 --------------------------------- Total minority
interests 221,471 221,023 223,540 Shareholders' equity Common
shares of beneficial interest 610 608 607 Additional paid-in
capital 1,908,099 1,902,595 1,899,713 Distributions in excess of
net income (289,482) (295,074) (273,609) Employee notes receivable
(2,046) (2,078) (2,087) Treasury shares, at cost (234,873)
(235,148) (235,148) --------------------------------- Total
shareholders' equity 1,382,308 1,370,903 1,389,476
--------------------------------- Total liabilities and
shareholders' equity $4,618,404 $4,487,799 $4,443,572
================================= (a) includes: net deferred
charges of: $14,079 $13,061 $13,757 value of in place leases of:
$1,156 $1,363 $10,561 (b) includes: deferred revenues of: $3,844
$994 $1,120 above/below market leases of: $51 $90 $889
distributions in excess of investments in joint ventures of:
$17,692 $17,407 $19,762 (Unaudited) Jun 30, Mar 31, 2005 2005
---------------------- ASSETS Real estate assets, at cost Land
$657,433 $655,321 Buildings and improvements 3,839,732 3,810,003
---------------------- 4,497,165 4,465,324 Accumulated depreciation
(694,120) (658,683) ---------------------- Net operating real
estate assets 3,803,045 3,806,641 Properties under development,
including land 368,022 348,202 Investment in joint ventures 11,830
11,985 Properties held for sale 39,930 72,338
---------------------- Total real estate assets 4,222,827 4,239,166
Accounts receivable - affiliates 35,084 33,587 Notes receivable
Affiliates 11,108 10,729 Other 32,283 32,274 Other assets, net (a)
101,475 95,941 Cash and cash equivalents 6,432 6,351 Restricted
cash 6,375 5,835 ---------------------- Total assets $4,415,584
$4,423,883 ====================== LIABILITIES AND SHAREHOLDERS'
EQUITY Liabilities Notes payable Unsecured $1,860,107 $1,900,710
Secured 672,557 675,473 Accounts payable and accrued expenses
104,216 101,576 Accrued real estate taxes 29,510 17,179 Other
liabilities (b) 62,753 58,432 Distributions payable 39,513 15,223
---------------------- Total liabilities 2,768,656 2,768,593
Commitments and contingencies Minority interests Perpetual
preferred units 97,925 97,925 Common units 118,119 121,734 Other
minority interests 9,878 9,880 ---------------------- Total
minority interests 225,922 229,539 Shareholders' equity Common
shares of beneficial interest 606 605 Additional paid-in capital
1,895,018 1,888,356 Distributions in excess of net income (236,954)
(224,533) Employee notes receivable (2,084) (3,097) Treasury
shares, at cost (235,580) (235,580) ---------------------- Total
shareholders' equity 1,421,006 1,425,751 ----------------------
Total liabilities and shareholders' equity $4,415,584 $4,423,883
====================== (a) includes: net deferred charges of:
$14,266 $13,386 value of in place leases of: $18,995 $29,186 (b)
includes: deferred revenues of: $1,250 $1,704 above/below market
leases of: $1,675 $2,537 distributions in excess of investments in
joint ventures of: $8,496 $7,971 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 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 March 31,
------------------------ 2006 2005 ------------------------ Net
income $41,443 $166,664 Real estate depreciation and amortization
from continuing operations 36,399 30,229 Real estate depreciation
from discontinued operations 346 2,229 Adjustments for
unconsolidated joint ventures 781 668 Income from continuing
operations allocated to common units 1,228 1,131 Income from
discontinued operations allocated to common units 797 14 (Gain) on
sale of operating properties - (132,117) (Gain) on sale of
discontinued operations (27,392) (14,380) (Gain) on sale of joint
venture properties (1,763) - ------------------------ Funds from
operations - diluted $51,839 $54,438 ========================
Weighted average number of common and common equivalent shares
outstanding: EPS diluted 55,474 49,374 FFO diluted 58,988 49,374
Net income per common share - diluted $0.75 $3.40 FFO per common
share - diluted $0.88 $1.10 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:
2Q06 Range 2006 Range Low High Low High ------------------
------------------ Expected net income per share - diluted $0.19
$0.24 $1.35 $1.55 Expected real estate depreciation 0.62 0.62 2.48
2.48 Expected adjustments for unconsolidated joint ventures 0.01
0.01 0.05 0.05 Expected income allocated to common units 0.02 0.02
0.11 0.11 Expected (gain) on sale of properties held in joint
ventures 0.00 0.00 (0.03) (0.03) Expected (gain) on sale of
properties and properties held for sale 0.00 0.00 (0.46) (0.46)
------------------ ------------------ Expected FFO per share -
diluted $0.85 $0.90 $3.50 $3.70 Note: This table contains
forward-looking statements. Please see the paragraph regarding
forward-looking statements earlier in this document. 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 March 31,
------------------------ 2006 2005 ------------------------ Net
income $41,443 $166,664 Fee and asset management (2,477) (7,306)
Sale of technology investments - (24,199) Interest and other income
(753) (3,223) Income on deferred compensation plans (50) (23)
Property management expense 4,226 3,220 Fee and asset management
expense 1,366 1,948 General and administrative expense 7,414 5,276
Transaction compensation and merger expenses - 13,824 Interest
expense 31,037 23,501 Depreciation and amortization 37,053 30,855
Amortization of deferred financing costs 1,047 1,221 Expense on
deferred compensation plans 50 23 Gain on sale of properties,
including land (499) (132,117) Equity in income of joint ventures
(2,317) (110) Distributions on perpetual preferred units 1,750
1,778 Original issuance costs on redeemed perpetual preferred units
- 365 Income allocated to common units and other minority interests
1,279 1,131 Income from discontinued operations (3,965) (2,342)
Gain on sale of discontinued operations (27,392) (14,391) Income
from discontinued operations allocated to common units 797 14
------------------------ Net Operating Income (NOI) $90,009 $66,109
"Same Property" Communities $80,451 $56,892 Non-"Same Property"
Communities 7,953 3,507 Development and Lease-Up Communities 1,095
- Dispositions / Other 510 5,710 ------------------------ Net
Operating Income (NOI) $90,009 $66,109 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 March 31, ------------------------ 2006
2005 ------------------------ Net income $41,443 $166,664 Interest
expense 31,037 23,501 Amortization of deferred financing costs
1,047 1,221 Depreciation and amortization 37,053 30,855
Distributions on perpetual preferred units 1,750 1,778 Original
issuance costs on redeemed perpetual preferred units - 365 Income
allocated to common units and other minority interests 1,279 1,131
Real estate depreciation from discontinued operations 346 2,229
Gain on sale of properties, including land (499) (132,117) Equity
in income of joint ventures (2,317) (110) Gain on sale of
discontinued operations (27,392) (14,391) Income from discontinued
operations allocated to common units 797 14
------------------------ EBITDA $84,544 $81,140 *T
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