CPT Camden Property Trust

Camden Property Trust (NYSE:CPT) announced that its funds from operations (�FFO�) for the third quarter of 2008 totaled $0.89 per diluted share or $52.3 million, as compared to $0.91 per diluted share or $56.3 million for the same period in 2007. FFO for the nine months ended September 30, 2008 totaled $2.72 per diluted share or $159.5 million, as compared to $2.71 per diluted share or $170.0 million for the same period in 2007. FFO for the three months ended September 30, 2008 included a $0.04 per diluted share impact from gains on the repurchase of unsecured senior notes, and a $0.02 per diluted share charge for property insurance costs related to Hurricane Ike. (See press release dated September 15, 2008 � �Camden Property Trust Provides Hurricane Ike Update� for additional details). FFO for the nine months ended September 30, 2008 included an $0.08 per diluted share impact from gains on the repurchase of unsecured senior notes, and a $0.02 per diluted share charge for property insurance costs related to Hurricane Ike. Net Income (�EPS�) The Company reported net income (�EPS�) of $73.7 million or $1.32 per diluted share for the third quarter of 2008, as compared to $11.9 million or $0.20 per diluted share for the same period in 2007. EPS for the three months ended September 30, 2008 included a $1.20 per diluted share impact from gain on sale of properties including discontinued operations, a $0.04 per diluted share impact from gains on the repurchase of unsecured senior notes, and a $0.02 per diluted share charge for property insurance costs related to Hurricane Ike. For the nine months ended September 30, 2008, net income totaled $105.9 million or $1.89 per diluted share, as compared to $67.5 million or $1.13 per diluted share for the same period in 2007. EPS for the nine months ended September 30, 2008 included a $1.49 per diluted share impact from gain on sale of properties including discontinued operations, an $0.08 per diluted share impact from gains on the repurchase of unsecured senior notes, and a $0.02 per diluted share charge for property insurance costs related to Hurricane Ike. EPS for the nine months ended September 30, 2007 included a $0.45 per diluted share impact from gain on sale of discontinued operations, net of minority interest. A reconciliation of net income to FFO is included in the financial tables accompanying this press release. Same-Property Results For the 41,011 apartment homes included in consolidated same-property results, third quarter 2008 same-property net operating income (�NOI�) declined 0.3% compared to the third quarter of 2007, with revenues increasing 1.9% and expenses increasing 5.6%. On a sequential basis, third quarter 2008 same-property NOI declined 3.9% compared to the second quarter of 2008, with revenues increasing 1.0% and expenses increasing 9.5% compared to the prior quarter. On a year-to-date basis, 2008 same-property NOI increased 0.5%, with revenue growth of 1.6% and expense growth of 3.4% compared to the same period in 2007. Same-property physical occupancy levels for the portfolio averaged 94.9% during the third quarter of 2008, compared to 94.6% in the third quarter of 2007 and 94.6% in the second quarter of 2008. The Company defines same-property communities as communities owned and stabilized as of January 1, 2007, excluding properties held for sale and communities under redevelopment. 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 During the third quarter, lease-up was completed at Camden City Centre in Houston, TX, a $51.6 million project that is currently 93% leased. As of September 30, 2008, Camden had four wholly-owned apartment communities which were completed and in lease-up: Camden Royal Oaks in Houston, TX, a $21.0 million project that is currently 95% leased; Camden Potomac Yard in Arlington, VA, a $104.4 million project that is currently 74% leased; Camden Summerfield in Landover, MD, a $62.4 million project that is currently 73% leased; and Camden Orange Court in Orlando, FL, a $45.4 million project that is currently 57% leased. The Company also had two joint venture communities which were completed and in lease-up: Camden College Park in College Park, MD, a $125.4 million joint venture project that is currently 61% leased; and Camden Main & Jamboree in Irvine, CA, a $110.8 million joint venture project that is currently 81% leased. The Company has three additional communities currently under construction and in lease-up: Camden Dulles Station in Oak Hill, VA, a $77.0 million project that is currently 42% leased; Camden Cedar Hills in Austin, TX, a $27.0 million project that is currently 71% leased; Camden Whispering Oaks in Houston, TX, a $30.0 million project that is currently 61% leased. Construction began during the third quarter on Camden Travis Street, a $39 million fully-consolidated joint venture development community for which Camden retains a 25% ownership. Camden�s current joint venture development pipeline includes three additional communities which are under construction but have not yet begun leasing. These projects comprise 807 apartment homes with a total budgeted cost of $121.8 million. The Company also has one pre-development joint venture community planned with 319 apartment homes at a total estimated cost of $40.0 million. Camden�s future development pipeline currently consists of 17 potential developments comprising 5,602 apartment homes and a total estimated cost of $1.45 billion. The future pipeline represents projects in the early phase of development, for which Camden owns the land but has not yet begun construction. Disposition Activity During the quarter, the Company disposed of Camden Lakeview, a 476-home apartment community in Irving, TX; Camden Woodview, a 283-home apartment community in Austin, TX; Camden Briar Oaks, a 430-home apartment community in Austin, TX; Camden Arbors, a 358-home apartment community in Westminster, CO; and Camden Place, a 442-home apartment community in Mesquite, TX. The five communities were sold for a total of $115.6 million, resulting in a gain on sale of $65.6 million. The Company also sold Camden South Congress, a 253-home apartment community in Austin, TX, to the Camden Multifamily Value Add Fund during the quarter. The sales price for the community was $44.2 million, resulting in a gain of approximately $1.8 million on the sale. Land Held for Sale At September 30, 2008, the Company had 4.6 acres of undeveloped land in Boca Raton, FL and Dallas, TX classified as held for sale. Debt & Equity Repurchases During the third quarter, Camden repurchased and retired $25.5 million of senior unsecured notes, resulting in a $2.4 million gain on early retirement of debt. During the nine months ended September 30, 2008, the Company repurchased and retired a total of $53.3 million of senior unsecured notes, resulting in a $4.7 million gain on early retirement of debt. No common shares were repurchased during the third quarter of 2008. During the nine months ended September 30, 2008, Camden repurchased 690,400 common shares for a total of $30.0 million. The Company has completed a total of $230.1 million of common share repurchases since January 1, 2007. Earnings Guidance Camden�s earnings guidance for 2008 is based on its current and expected views of the apartment market and general economic conditions. Full-year 2008 FFO is expected to be $3.57 to $3.61 per diluted share, and full-year 2008 EPS is expected to be $1.95 to $1.99 per diluted share. The Company�s revised 2008 earnings guidance is based on projections of same-property revenue growth of 1.4% to 1.8%, expense growth of 4.8% to 5.2%, and NOI growth of (0.2)% to (0.6)%. Fourth quarter 2008 earnings guidance is $0.85 to $0.89 per diluted share for FFO and $0.06 to $0.10 per diluted share for EPS. Guidance for EPS excludes potential future gains on the sale of properties. Camden intends to update 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, October 31, 2008 at 10:00 a.m. Central Time to review its third quarter 2008 results and discuss its outlook for future performance. To participate in the call, please dial (800) 860-2442 (domestic) or (412) 858-4600 (international) by 9:50 a.m. Central Time and request the Camden Property Trust Third Quarter 2008 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, an S&P 400 Company, is a real estate company engaged in the ownership, development, acquisition, management and disposition of multifamily apartment communities. Camden owns interests in and operates 179 properties containing 62,421 apartment homes across the United States. Upon completion of seven properties under development, the Company�s portfolio will increase to 64,329 apartment homes in 186 properties. Camden was recently named to FORTUNE� Magazine�s list of the �100 Best Companies to Work For.� 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. � 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 2008 � 2007 2008 � 2007 Property revenues Rental revenues $ 140,062 $ 133,921 $ 413,070 $ 395,569 Other property revenues � 20,524 � � � 17,000 � � 56,928 � � � 46,793 � Total property revenues 160,586 150,921 469,998 442,362 � Property expenses Property operating and maintenance 47,925 42,801 128,080 117,564 Real estate taxes � 18,045 � � � 16,015 � � 53,434 � � � 48,255 � Total property expenses 65,970 58,816 181,514 165,819 � Non-property income Fee and asset management income 2,350 1,765 6,893 6,571 Interest and other income 1,234 2,008 3,659 5,380 Income (loss) on deferred compensation plans � (10,550 ) � � 1,261 � � (19,730 ) � � 8,402 � Total non-property income (6,966 ) 5,034 (9,178 ) 20,353 � Other expenses Property management 5,007 4,448 15,188 13,976 Fee and asset management 1,198 971 4,619 3,402 General and administrative 7,513 8,110 23,887 24,076 Interest 32,838 27,599 98,697 84,403 Depreciation and amortization 44,086 41,444 129,349 118,077 Amortization of deferred financing costs 798 905 2,121 2,712 Expense (benefit) on deferred compensation plans � (10,550 ) � � 1,261 � � (19,730 ) � � 8,402 � Total other expenses � 80,890 � � � 84,738 � � 254,131 � � � 255,048 � � Income from continuing operations before gain on sale of properties, gain on early retirement of debt, equity in income of joint ventures, minority interests and income taxes 6,760 12,401 25,175 41,848 Gain on sale of properties, including land 1,823 - 2,929 - Gain on early retirement of debt 2,440 - 4,738 - Equity in income (loss) of joint ventures (261 ) (147 ) (782 ) 1,072 Minority interests Distributions on perpetual preferred units (1,750 ) (1,750 ) (5,250 ) (5,250 ) Income allocated to common units and other minority interests � (1,005 ) � � (1,225 ) � (3,400 ) � � (3,355 ) Income from continuing operations before income taxes 8,007 9,279 23,410 34,315 Income tax expense � (83 ) � � (353 ) � (516 ) � � (2,574 ) Income from continuing operations 7,924 8,926 22,894 31,741 Income from discontinued operations 150 3,145 2,713 9,772 Gain on sale of discontinued operations 65,599 - 80,275 30,976 Income from discontinued operations allocated to common units � - � � � (219 ) � - � � � (5,008 ) Net income $ 73,673 � � $ 11,852 � $ 105,882 � � $ 67,481 � � CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME Net income $ 73,673 $ 11,852 $ 105,882 $ 67,481 Other comprehensive income (loss) Unrealized loss on cash flow hedging activities (1,570 ) - (1,402 ) - Gain on postretirement obligations � 103 � � � - � � 103 � � � - � Comprehensive income $ 72,206 $ 11,852 $ 104,583 $ 67,481 � PER SHARE DATA Net income - basic $ 1.33 $ 0.20 $ 1.92 $ 1.15 Net income - diluted 1.32 0.20 1.89 1.13 Income from continuing operations - basic 0.14 0.15 0.41 0.54 Income from continuing operations - diluted 0.14 0.15 0.41 0.53 � Weighted average number of common and common equivalent shares outstanding: Basic 55,367 58,073 55,228 58,590 Diluted 56,008 58,993 55,889 59,634 � � � 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 Nine Months Ended September 30, September 30, FUNDS FROM OPERATIONS 2008 � 2007 2008 � 2007 � Net income $ 73,673 $ 11,852 $ 105,882 $ 67,481 Real estate depreciation and amortization from continuing operations 43,191 40,515 126,696 115,741 Real estate depreciation from discontinued operations 68 1,005 1,910 4,789 Adjustments for unconsolidated joint ventures 1,889 1,641 5,143 3,952 Income from continuing operations allocated to common units 884 1,051 3,044 2,835 Income from discontinued operations allocated to common units - 219 - 5,008 (Gain) loss on sale of operating properties, net of taxes (1,823 ) - (2,929 ) 1,184 (Gain) on sale of discontinued operations � (65,599 ) � � - � (80,265 ) � � (30,976 ) Funds from operations - diluted $ 52,283 � � $ 56,283 $ 159,481 � � $ 170,014 � � PER SHARE DATA Funds from operations - diluted $ 0.89 $ 0.91 $ 2.72 $ 2.71 Cash distributions 0.70 0.69 2.10 2.07 � Weighted average number of common and common equivalent shares outstanding: FFO - diluted 58,561 61,978 58,572 62,634 � PROPERTY DATA Total operating properties (end of period) (a) 179 187 179 187 Total operating apartment homes in operating properties (end of period) (a) 62,421 64,462 62,421 64,462 Total operating apartment homes (weighted average) 50,877 53,466 51,532 53,329 Total operating apartment homes - excluding discontinued operations (weighted average) 50,231 48,950 49,807 48,274 � � (a) 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) Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, 2008 � 2008 2008 � 2007 � 2007 ASSETS Real estate assets, at cost Land $ 745,085 $ 755,200 $ 749,664 $ 730,548 $ 714,044 Buildings and improvements � 4,442,067 � � � 4,474,749 � � 4,435,787 � � � 4,316,472 � � � 4,215,662 � 5,187,152 5,229,949 5,185,451 5,047,020 4,929,706 Accumulated depreciation � (952,883 ) � � (935,640 ) � (907,643 ) � � (868,074 ) � � (827,944 ) Net operating real estate assets 4,234,269 4,294,309 4,277,808 4,178,946 4,101,762 Properties under development, including land 323,300 333,419 358,994 446,664 488,620 Investments in joint ventures 15,663 14,773 12,526 8,466 12,243 Properties held for sale, including land � 9,495 � � � 36,152 � � 23,299 � � � 25,253 � � � 73,325 � Total real estate assets 4,582,727 4,678,653 4,672,627 4,659,329 4,675,950 Accounts receivable - affiliates 36,868 36,556 36,166 35,940 36,171 Notes receivable Affiliates 58,240 53,849 52,331 50,358 48,172 Other 8,710 8,710 8,710 11,565 11,565 Other assets, net (a) 111,847 117,599 116,010 126,996 129,810 Cash and cash equivalents 29,517 1,242 947 897 1,207 Restricted cash � 4,971 � � � 4,687 � � 5,325 � � � 5,675 � � � 5,904 � Total assets $ 4,832,880 � � $ 4,901,296 � $ 4,892,116 � � $ 4,890,760 � � $ 4,908,779 � � � � LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Notes payable Unsecured $ 2,096,285 $ 2,400,027 $ 2,351,006 $ 2,265,319 $ 2,198,628 Secured 727,235 539,328 559,952 562,776 565,564 Accounts payable and accrued expenses 86,668 77,441 90,779 107,403 110,643 Accrued real estate taxes 40,664 30,664 17,769 24,943 42,151 Other liabilities (b) 124,915 129,471 146,817 136,365 117,317 Distributions payable � 42,968 � � � 42,965 � � 42,942 � � � 42,689 � � � 44,180 � Total liabilities 3,118,735 3,219,896 3,209,265 3,139,495 3,078,483 � Commitments and contingencies � Minority interests Perpetual preferred units 97,925 97,925 97,925 97,925 97,925 Common units 93,816 96,249 97,416 111,624 104,176 Other minority interests � 8,438 � � � 8,572 � � 8,537 � � � 10,403 � � � 10,740 � Total minority interests 200,179 202,746 203,878 219,952 212,841 � Shareholders' equity Common shares of beneficial interest 660 660 660 654 654 Additional paid-in capital 2,232,436 2,230,119 2,227,256 2,209,631 2,207,333 Distributions in excess of net income (238,301 ) (272,294 ) (250,845 ) (227,025 ) (269,667 ) Employee notes receivable (298 ) (302 ) (306 ) (1,950 ) (1,963 ) Treasury shares, at cost (463,108 ) (463,574 ) (463,574 ) (433,874 ) (318,902 ) Accumulated other comprehensive loss (c) � (17,423 ) � � (15,955 ) � (34,218 ) � � (16,123 ) � � - � Total shareholders' equity � 1,513,966 � � � 1,478,654 � � 1,478,973 � � � 1,531,313 � � � 1,617,455 � Total liabilities and shareholders' equity $ 4,832,880 � � $ 4,901,296 � $ 4,892,116 � � $ 4,890,760 � � $ 4,908,779 � � � � (a) includes: net deferred charges of: $ 11,388 $ 9,434 $ 10,287 $ 10,811 $ 10,308 value of in place leases of: - - $ 62 $ 258 $ 703 � (b) includes: deferred revenues of: $ 2,940 $ 2,747 $ 2,575 $ 2,459 $ 2,738 above/below market leases of: - - ($6 ) ($13 ) $ 25 distributions in excess of investments in joint ventures of: $ 27,977 $ 26,022 $ 25,065 $ 23,653 $ 20,867 fair value adjustment of derivative instruments: $ 17,423 $ 15,955 $ 34,218 $ 16,123 - � (c) Represents the fair value adjustment of the derivative instruments and gain on post retirement obligations. 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 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 Nine Months Ended September 30, September 30, 2008 � 2007 2008 � 2007 Net income $ 73,673 $ 11,852 $ 105,882 $ 67,481 Real estate depreciation and amortization from continuing operations 43,191 40,515 126,696 115,741 Real estate depreciation from discontinued operations 68 1,005 1,910 4,789 Adjustments for unconsolidated joint ventures 1,889 1,641 5,143 3,952 Income from continuing operations allocated to common units 884 1,051 3,044 2,835 Income from discontinued operations allocated to common units - 219 - 5,008 (Gain) loss on sale of operating properties, net of taxes (1,823 ) - (2,929 ) 1,184 (Gain) on sale of discontinued operations � (65,599 ) � � - � � (80,265 ) � � (30,976 ) Funds from operations - diluted $ 52,283 � � $ 56,283 � $ 159,481 � � $ 170,014 � � Weighted average number of common and common equivalent shares outstanding: EPS diluted 56,008 58,993 55,889 59,634 FFO diluted 58,561 61,978 58,572 62,634 � Net income per common share - diluted $ 1.32 $ 0.20 $ 1.89 $ 1.13 FFO per common share - diluted $ 0.89 $ 0.91 $ 2.72 $ 2.71 � 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: � 4Q08 Range 2008 Range Low � High Low � High � Expected net income per share - diluted $ 0.06 $ 0.10 $ 1.95 $ 1.99 Expected difference between EPS and fully diluted FFO shares (0.01 ) (0.01 ) (0.09 ) (0.09 ) Expected real estate depreciation 0.75 0.75 2.94 2.94 Expected adjustments for unconsolidated joint ventures 0.03 0.03 0.12 0.12 Expected income allocated to common units 0.02 0.02 0.07 0.07 Expected (gain) on sale of properties and properties held for sale � 0.00 � � � 0.00 � � (1.42 ) � � (1.42 ) Expected FFO per share - diluted $ 0.85 $ 0.89 $ 3.57 $ 3.61 � � � � � � � 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 Nine Months Ended September 30, September 30, 2008 � 2007 2008 � 2007 Net income $ 73,673 $ 11,852 $ 105,882 $ 67,481 Fee and asset management income (2,350 ) (1,765 ) (6,893 ) (6,571 ) Interest and other income (1,234 ) (2,008 ) (3,659 ) (5,380 ) Income (loss) on deferred compensation plans 10,550 (1,261 ) 19,730 (8,402 ) Property management expense 5,007 4,448 15,188 13,976 Fee and asset management expense 1,198 971 4,619 3,402 General and administrative expense 7,513 8,110 23,887 24,076 Interest expense 32,838 27,599 98,697 84,403 Depreciation and amortization 44,086 41,444 129,349 118,077 Amortization of deferred financing costs 798 905 2,121 2,712 Expense (benefit) on deferred compensation plans (10,550 ) 1,261 (19,730 ) 8,402 (Gain) loss on sale of properties, including land (1,823 ) - (2,929 ) - Gain on early retirement of debt (2,440 ) - (4,738 ) - Equity in income (loss) of joint ventures 261 147 782 (1,072 ) Distributions on perpetual preferred units 1,750 1,750 5,250 5,250 Income allocated to common units and other minority interests 1,005 1,225 3,400 3,355 Income tax expense 83 353 516 2,574 Income from discontinued operations (150 ) (3,145 ) (2,713 ) (9,772 ) Gain on sale of discontinued operations (65,599 ) - (80,275 ) (30,976 ) Income from discontinued operations allocated to common units � - � � � 219 � � - � � � 5,008 � Net Operating Income (NOI) $ 94,616 $ 92,105 $ 288,484 $ 276,543 � "Same Property" Communities $ 76,865 $ 77,121 $ 235,484 $ 234,239 Non-"Same Property" Communities 9,779 7,913 28,650 20,934 Development and Lease-Up Communities 1,304 18 1,566 (108 ) Redevelopment Communities 7,119 6,159 20,471 18,954 Dispositions / Other � (451 ) � � 894 � � 2,313 � � � 2,524 � Net Operating Income (NOI) $ 94,616 $ 92,105 $ 288,484 $ 276,543 � � 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, 2008 � 2007 2008 � 2007 Net income $ 73,673 $ 11,852 $ 105,882 $ 67,481 Interest expense 32,924 27,853 99,163 85,159 Amortization of deferred financing costs 798 905 2,121 2,712 Depreciation and amortization 44,086 41,444 129,349 118,077 Distributions on perpetual preferred units 1,750 1,750 5,250 5,250 Income allocated to common units and other minority interests 1,005 1,225 3,400 3,355 Income tax expense 83 353 516 2,574 Real estate depreciation and amortization from discontinued operations 70 1,014 1,927 4,813 (Gain) loss on sale of properties, including land (1,823 ) - (2,929 ) - Gain on early retirement of debt (2,440 ) - (4,738 ) - Equity in income(loss) of joint ventures 261 147 782 (1,072 ) Gain on sale of discontinued operations (65,599 ) - (80,275 ) (30,976 ) Income from discontinued operations allocated to common units � - � � � 219 � � - � � � 5,008 � EBITDA $ 84,788 $ 86,762 $ 260,448 $ 262,381