Camden Property Trust (NYSE:CPT) (the "Company") announced today
operating results for the three and twelve months ended December
31, 2023. Net Income Attributable to Common Shareholders (“EPS”),
Funds from Operations (“FFO”), Core Funds from Operations ("Core
FFO"), and Core Adjusted Funds from Operations (“Core AFFO”) for
the three and twelve months ended December 31, 2023 are detailed
below. A reconciliation of EPS to FFO, Core FFO, and Core AFFO is
included in the financial tables accompanying this press
release.
Three Months Ended
Twelve Months Ended
December 31,
December 31,
Per Diluted Share
2023
2022
2023
2022
EPS
$2.03
$0.42
$3.70
$6.04
FFO
$1.72
$1.74
$6.78
$6.59
Core FFO
$1.73
$1.74
$6.82
$6.52
Core AFFO
$1.44
$1.48
$5.94
$5.69
Three Months Ended
4Q23 Guidance
4Q23 Guidance
Per Diluted Share
December 31, 2023
Midpoint
Variance
EPS
$2.03
$0.39
$1.64
FFO
$1.72
$1.72
$0.00
Core FFO
$1.73
$1.72
$0.01
Quarterly Growth
Sequential Growth
Year-To-Date Growth
Same Property Results
4Q23 vs. 4Q22
4Q23 vs. 3Q23
2023 vs. 2022
Revenues
2.6%
(0.6)%
5.1%
Expenses
7.7%
(2.2)%
6.7%
Net Operating Income ("NOI")
0.0%
0.3%
4.3%
Same Property Results
4Q23
4Q22
3Q23
Occupancy
94.9%
95.8%
95.6%
For 2023, the Company defines same property communities as
communities wholly-owned and stabilized since January 1, 2022,
excluding communities under redevelopment and properties held for
sale. A reconciliation of net income to NOI and same property NOI
is included in the financial tables accompanying this press
release.
Operating Statistics - Same Property
Portfolio
New Lease and Renewal Data - Date Signed
(1)
January 2024*
January 2023
4Q23
4Q22
Signed New Lease Rates
(3.8)%
1.8%
(4.3)%
4.0%
Signed Renewal Rates
3.6%
7.1%
3.9%
8.3%
Signed Blended Lease Rates
(0.3)%
4.1%
(0.6)%
6.1%
New Lease and Renewal Data - Date
Effective (2)
January 2024*
January 2023
4Q23
4Q22
Effective New Lease Rates
(4.4)%
1.1%
(3.9)%
5.2%
Effective Renewal Rates
3.7%
8.4%
4.4%
10.2%
Effective Blended Lease Rates
(0.6)%
4.8%
0.1%
7.5%
*Data as of January 31, 2024
(1) Average change in same property new
lease and renewal rates vs. expiring lease rates when signed.
(2) Average change in same property new
lease and renewal rates vs. expiring lease rates when
effective.
Occupancy, Bad Debt and Turnover Data
January 2024*
January 2023
4Q23
4Q22
Occupancy
95.0%
95.3%
94.9%
95.8%
Bad Debt
N/A
1.6%
1.1%
1.6%
Annualized Gross Turnover
41%
44%
44%
44%
Annualized Net Turnover
31%
36%
34%
37%
*Data as of January 31, 2024
Development Activity During
the quarter, construction was completed at Camden NoDa in
Charlotte, NC. Additionally, leasing began at Camden Woodmill Creek
in The Woodlands, TX and leasing continued at Camden Durham in
Durham, NC.
Development Communities - Construction Completed and Project in
Lease-Up ($ in millions)
Total
Total
% Leased
Community Name
Location
Homes
Cost
as of 1/31/2024
Camden NoDa
Charlotte, NC
387
$107.6
89%
Development Communities - Construction Ongoing ($ in
millions)
Total
Total
% Leased
Community Name
Location
Homes
Estimated Cost
as of 1/31/2024
Camden Durham
Durham, NC
420
$145.0
17%
Camden Woodmill Creek
The Woodlands, TX
189
75.0
15%
Camden Village District
Raleigh, NC
369
138.0
Camden Long Meadow Farms
Richmond, TX
188
80.0
Total
1,166
$438.0
Disposition Activity During
the quarter, the Company disposed of a 714-apartment home community
in Costa Mesa, CA for approximately $232.0 million and recognized a
gain of approximately $176.4 million. In February 2024, Camden
expects to close on a planned disposition of a 592-apartment home
community in Atlanta, GA for approximately $115.0 million.
Capital Markets Transactions
During the quarter, the Company issued $500 million senior
unsecured notes due 2026. These three-year notes were issued at
99.997% of par value with a coupon of 5.850%, a yield of 5.85%, and
effective interest rate of 6.08% per annum after giving effect to
deducting the underwriting discounts and other expenses of the
offering. In connection with the offering of the notes, Camden
initiated a forward interest rate swap agreement with an aggregate
notional amount of $500 million. Under the interest rate swap
agreement, the Company receives a fixed rate of 5.85% and pays a
floating interest rate of daily compounded SOFR plus 1.12%.
Subsequent to quarter-end, the Company issued $400 million
senior unsecured notes due 2034. These ten-year notes were issued
at 99.638% of par value with a coupon of 4.900%, a yield of 4.94%,
and effective interest rate of 5.06% per annum after giving effect
to deducting the underwriting discounts and other expenses of the
offering. Also subsequent to quarter-end, the Company repaid the
outstanding balance on its $300 million unsecured term loan and
repaid its 4.36% $250 million senior unsecured notes payable which
matured in January 2024.
Liquidity Analysis As of
December 31, 2023, Camden had over $1.4 billion of liquidity
comprised of approximately $259.7 million in cash and cash
equivalents, and nearly $1.2 billion of availability under its
unsecured credit facility. At quarter-end, the Company had $137.6
million left to fund under its existing wholly-owned development
pipeline.
Earnings Guidance Camden
provided initial earnings guidance for 2024 based on its current
and expected views of the apartment market and general economic
conditions, and provided guidance for first quarter 2024 as
detailed below. Expected EPS excludes gains, if any, from future
real estate transactions.
1Q24
2024
Per Diluted Share
Range
Range
Midpoint
EPS
$0.74 - $0.78
$1.72 - $2.02
$1.87
FFO
$1.62 - $1.66
$6.54 - $6.84
$6.69
Core FFO(1)
$1.65 - $1.69
$6.59 - $6.89
$6.74
(1) The Company's 2024 core FFO guidance
includes approximately $0.05 per share of non-core adjustments for
casualty-related expenses, legal costs, loss on early retirement of
debt, and expensed pursuit costs.
2024
Same Property Growth Guidance
Range
Midpoint
Revenues
0.50% - 2.50%
1.50%
Expenses
3.75% - 5.25%
4.50%
NOI
(1.50%) - 1.50%
0.00%
Camden intends to update its earnings guidance to the market on
a quarterly basis. Additional information on the Company’s 2024
financial outlook including key assumptions for same property
growth and a reconciliation of expected EPS to expected FFO and
expected Core FFO are included in the financial tables accompanying
this press release.
Quarterly Dividend
Declaration Camden's Board of Trust Managers declared a
first quarter 2024 dividend of $1.03 per common share payable on
April 17, 2024 to shareholders of record as of March 29, 2024. In
declaring the dividend, the Board of Trust Managers considered a
number of factors, including the Company's past performance and
future prospects, as described in this press release.
Conference Call Friday,
February 2, 2024 at 10:00 AM CT Domestic Dial-In Number: (888)
317-6003; International Dial-In Number: (412) 317-6061; Passcode:
5105539 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 and operates 172 properties containing 58,634 apartment
homes across the United States. Upon completion of 4 properties
currently under development, the Company’s portfolio will increase
to 59,800 apartment homes in 176 properties. Camden has been
recognized as one of the 100 Best Companies to Work For® by FORTUNE
magazine for 16 consecutive years, most recently ranking #33. 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 December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
OPERATING
DATA
Property revenues (a)
$387,587
$375,909
$1,542,027
$1,422,756
Property expenses
Property operating and maintenance
89,873
81,233
353,911
315,737
Real estate taxes
46,664
45,896
195,009
182,344
Total property expenses
136,537
127,129
548,920
498,081
Non-property income
Fee and asset management
1,078
931
3,451
5,188
Interest and other income
322
138
879
3,019
Income/(loss) on deferred compensation
plans
9,981
8,813
15,398
(19,637
)
Total non-property income/(loss)
11,381
9,882
19,728
(11,430
)
Other expenses
Property management
8,767
7,373
33,706
28,601
Fee and asset management
440
426
1,717
2,516
General and administrative
15,744
15,887
62,506
60,413
Interest
33,968
30,668
133,395
113,424
Depreciation and amortization
144,956
147,271
574,813
577,020
Expense/(benefit) on deferred compensation
plans
9,981
8,813
15,398
(19,637
)
Total other expenses
213,856
210,438
821,535
762,337
Loss on early retirement of debt
—
—
(2,513
)
—
Gain on sale of operating properties,
including land
176,497
—
225,416
36,372
Gain on acquisition of unconsolidated
joint venture interests
—
—
—
474,146
Equity in income of joint ventures
—
—
—
3,048
Income from continuing operations
before income taxes
225,072
48,224
414,203
664,474
Income tax expense
(897
)
(753
)
(3,650
)
(2,966
)
Net income
224,175
47,471
410,553
661,508
Less income allocated to non-controlling
interests
(1,845
)
(1,762
)
(7,244
)
(7,895
)
Net income attributable to common
shareholders
$222,330
$45,709
$403,309
$653,613
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
Net income
$224,175
$47,471
$410,553
$661,508
Other comprehensive income
Unrealized loss on cash flow hedging
activities
(728
)
—
(728
)
—
Unrealized gain (loss) and unamortized
prior service cost on post retirement obligation
(183
)
489
(183
)
489
Reclassification of net loss on cash flow
hedging activities, prior service cost and net loss on post
retirement obligation
358
369
1,433
1,476
Comprehensive income
223,622
48,329
411,075
663,473
Less income allocated to non-controlling
interests
(1,845
)
(1,762
)
(7,244
)
(7,895
)
Comprehensive income attributable to
common shareholders
$221,777
$46,567
$403,831
$655,578
PER SHARE
DATA
Total earnings per common share -
basic
$2.04
$0.42
$3.71
$6.07
Total earnings per common share -
diluted
2.03
0.42
3.70
6.04
Weighted average number of common
shares outstanding:
Basic
108,698
108,467
108,653
107,605
Diluted
110,312
108,512
109,399
108,388
(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 December 31, 2023, we recognized $387.6
million of property revenue which consisted of approximately $346.0
million of rental revenue and approximately $41.6 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 $375.9 million recognized for
the three months ended December 31, 2022, made up of approximately
$336.0 million of rental revenue and approximately $39.9 million of
amounts received under contractual terms for other services
considered to be non-lease components within our lease contracts.
For the twelve months ended December 31, 2023, we recognized
$1,542.0 million of property revenue which consisted of
approximately $1,374.0 million of rental revenue and approximately
$168.0 million of amounts received under contractual terms for
other services considered to be non-lease components within our
lease contracts. This compares to the $1,422.8 million of property
revenue recognized for the twelve months ended December 31, 2022,
made up of approximately $1,266.0 million of rental revenue and
approximately $156.8 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 $10.7 million and $10.0 million for the three months
ended December 31, 2023 and 2022, respectively and was $42.0
million and $37.5 million for the twelve months ended December 31,
2023 and 2022, 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 December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
FUNDS FROM OPERATIONS
Net income attributable to common
shareholders
$222,330
$45,709
$403,309
$653,613
Real estate depreciation and
amortization
141,892
144,105
562,654
565,913
Adjustments for unconsolidated joint
ventures
—
—
—
2,709
Income allocated to non-controlling
interests
1,845
1,762
7,244
7,895
Gain on sale of operating properties
(176,412
)
—
(225,331
)
(36,372
)
Gain on acquisition of unconsolidated
joint venture interests
—
—
—
(474,146
)
Funds from operations
$189,655
$191,576
$747,876
$719,612
Plus: Casualty-related expenses, net of
recoveries
683
625
1,186
2,282
Plus: Severance
—
—
—
896
Plus: Legal costs and settlements, net of
recoveries
196
—
280
555
Plus: Loss on early retirement of debt
—
—
2,513
—
Plus: Expensed development & other
pursuit costs
—
—
471
—
Less: Net below market lease
amortization
—
(722
)
—
(8,467
)
Less: Miscellaneous (income)/expense
(a)
—
—
(364
)
(2,071
)
Core funds from operations
$190,534
$191,479
$751,962
$712,807
Less: recurring capitalized expenditures
(b)
(31,927
)
(29,033
)
(97,094
)
(90,715
)
Core adjusted funds from
operations
$158,607
$162,446
$654,868
$622,092
PER SHARE DATA
Funds from operations - diluted
$1.72
$1.74
$6.78
$6.59
Core funds from operations - diluted
1.73
1.74
6.82
6.52
Core adjusted funds from operations -
diluted
1.44
1.48
5.94
5.69
Distributions declared per common
share
1.00
0.94
4.00
3.76
Weighted average number of common
shares outstanding:
FFO/Core FFO/Core AFFO - diluted
110,312
110,117
110,269
109,261
PROPERTY DATA
Total operating properties (end of period)
(c)
172
172
172
172
Total operating apartment homes in
operating properties (end of period) (c)
58,634
58,702
58,634
58,702
Total operating apartment homes (weighted
average)
59,245
58,621
59,068
56,566
(a)
Activity relates to proceeds from a
previously sold technology investment.
(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)
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
Dec 31, 2022
ASSETS
Real estate assets, at cost
Land
$1,711,873
$1,732,804
$1,727,182
$1,722,881
$1,716,273
Buildings and improvements
10,993,390
10,963,667
10,848,837
10,778,795
10,674,619
12,705,263
12,696,471
12,576,019
12,501,676
12,390,892
Accumulated depreciation
(4,332,524
)
(4,254,388
)
(4,113,095
)
(3,987,438
)
(3,848,111
)
Net operating real estate assets
8,372,739
8,442,083
8,462,924
8,514,238
8,542,781
Properties under development, including
land
486,864
499,761
516,543
515,134
524,981
Total real estate assets
8,859,603
8,941,844
8,979,467
9,029,372
9,067,762
Accounts receivable – affiliates
11,905
12,057
12,121
12,121
13,364
Other assets, net (a)
244,182
237,594
239,958
226,394
229,371
Cash and cash equivalents
259,686
14,600
20,326
20,419
10,687
Restricted cash
8,361
8,369
8,531
6,863
6,751
Total assets
$9,383,737
$9,214,464
$9,260,403
$9,295,169
$9,327,935
LIABILITIES AND EQUITY
Liabilities
Notes payable
Unsecured
$3,385,309
$3,323,057
$3,352,415
$3,232,682
$3,165,924
Secured
330,127
330,071
330,015
515,134
514,989
Accounts payable and accrued expenses
222,599
211,759
192,613
191,468
211,370
Accrued real estate taxes
96,517
128,794
93,642
48,084
95,551
Distributions payable
110,427
110,463
110,465
110,444
103,628
Other liabilities (b)
186,987
175,341
189,711
193,804
179,552
Total liabilities
4,331,966
4,279,485
4,268,861
4,291,616
4,271,014
Equity
Common shares of beneficial interest
1,156
1,156
1,156
1,156
1,156
Additional paid-in capital
5,914,868
5,911,627
5,907,828
5,903,437
5,897,454
Distributions in excess of net income
attributable to common shareholders
(613,651
)
(727,117
)
(666,218
)
(648,457
)
(581,532
)
Treasury shares
(320,364
)
(320,702
)
(320,675
)
(321,431
)
(328,684
)
Accumulated other comprehensive loss
(c)
(1,252
)
(699
)
(1,057
)
(1,415
)
(1,774
)
Total common equity
4,980,757
4,864,265
4,921,034
4,933,290
4,986,620
Non-controlling interests
71,014
70,714
70,508
70,263
70,301
Total equity
5,051,771
4,934,979
4,991,542
5,003,553
5,056,921
Total liabilities and equity
$9,383,737
$9,214,464
$9,260,403
$9,295,169
$9,327,935
(a) Includes net deferred charges of:
$5,879
$6,481
$7,033
$7,710
$8,413
(b) Includes deferred revenues of:
$1,030
$1,167
$1,239
$1,348
$304
(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.
Core FFO
Core FFO represents FFO as further adjusted for items not
considered part of our core business operations, such as
casualty-related expenses, net of (recoveries), severance, legal
costs and settlements, net of recoveries, loss on early retirement
of debt, expensed development and other pursuit costs, net below
market lease amortization, and miscellaneous (income)/expense
adjustments. We consider Core FFO to be a helpful supplemental
measure of operating performance as it excludes not only
depreciation expense of real estate assets, but it also excludes
certain items which by their nature are not comparable period over
period and therefore tends to obscure actual operating performance.
Our definition of Core FFO may differ from other REITs, and there
can be no assurance our basis for computing this measure is
comparable to other REITs.
Core Adjusted FFO
In addition to FFO & Core FFO, we compute Core Adjusted FFO
("Core AFFO") as a supplemental measure of operating performance.
Core AFFO is calculated utilizing Core 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 Core FFO and
Core AFFO is provided below:
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
Net income attributable to common
shareholders
$222,330
$45,709
$403,309
$653,613
Real estate depreciation and
amortization
141,892
144,105
562,654
565,913
Adjustments for unconsolidated joint
ventures
—
—
—
2,709
Income allocated to non-controlling
interests
1,845
1,762
7,244
7,895
Gain on sale of operating properties
(176,412
)
—
(225,331
)
(36,372
)
Gain on acquisition of unconsolidated
joint venture interests
—
—
—
(474,146
)
Funds from operations
$189,655
$191,576
$747,876
$719,612
Plus: Casualty-related expenses, net of
recoveries
683
625
1,186
2,282
Plus: Severance
—
—
—
896
Plus: Legal costs and settlements, net of
recoveries
196
—
280
555
Plus: Loss on early retirement of debt
—
—
2,513
—
Plus: Expensed development & other
pursuit costs
—
—
471
—
Less: Net below market lease
amortization
—
(722
)
—
(8,467
)
Less: Miscellaneous (income)/expense
(a)
—
—
(364
)
(2,071
)
Core funds from operations
$190,534
$191,479
$751,962
$712,807
Less: recurring capitalized
expenditures
(31,927
)
(29,033
)
(97,094
)
(90,715
)
Core adjusted funds from
operations
$158,607
$162,446
$654,868
$622,092
Weighted average number of common shares
outstanding:
EPS diluted
110,312
108,512
109,399
108,388
FFO/Core FFO/ Core AFFO diluted
110,312
110,117
110,269
109,261
a) Activity relates to proceeds from an
earn-out from a previously sold technology investment
CAMDEN
NON-GAAP FINANCIAL
MEASURES
(In thousands, except per share
amounts)
(Unaudited)
Reconciliation of
FFO, Core FFO, and Core AFFO per share
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
Total Earnings Per Common Share -
Diluted
$2.03
$0.42
$3.70
$6.04
Real estate depreciation and
amortization
1.28
1.31
5.07
5.15
Adjustments for unconsolidated joint
ventures
—
—
—
0.02
Income allocated to non-controlling
interests
0.01
0.01
0.05
0.05
Gain on sale of operating property
(1.60
)
—
(2.04
)
(0.33
)
Gain on acquisition of unconsolidated
joint venture interests
—
—
—
(4.34
)
FFO per common share - Diluted
$1.72
$1.74
$6.78
$6.59
Plus: Casualty-related expenses, net of
recoveries
0.01
0.01
0.01
0.02
Plus: Severance
—
—
—
0.01
Plus: Legal costs and settlements, net of
recoveries
—
—
—
—
Plus: Loss on early retirement of debt
—
—
0.03
—
Plus: Expensed development & other
pursuit costs
—
—
—
—
Less: Net below market lease
amortization
—
(0.01
)
—
(0.08
)
Less: Miscellaneous (income)/expense
(a)
—
—
—
(0.02
)
Core FFO per common share -
Diluted
$1.73
$1.74
$6.82
$6.52
Less: recurring capitalized
expenditures
(0.29
)
(0.26
)
(0.88
)
(0.83
)
Core AFFO per common share -
Diluted
$1.44
$1.48
$5.94
$5.69
Expected FFO & Core
FFO
Expected FFO and Core FFO is calculated in a method consistent
with historical FFO and Core FFO, and is considered appropriate
supplemental measures of expected operating performance when
compared to expected earnings per common share (EPS). A
reconciliation of the ranges provided for diluted EPS to expected
FFO and expected Core FFO per diluted share is provided below:
1Q24 Range
2024 Range
Low
High
Low
High
Expected earnings per common share -
diluted
$0.74
$0.78
$1.72
$2.02
Expected real estate depreciation and
amortization
1.28
1.28
5.17
5.17
Expected income allocated to
non-controlling interests
0.01
0.01
0.06
0.06
Expected (gain) on sale of operating
properties
(0.41
)
(0.41
)
(0.41
)
(0.41
)
Expected FFO per share - diluted
$1.62
$1.66
$6.54
$6.84
Anticipated Adjustments to FFO
0.03
0.03
0.05
0.05
Expected Core FFO per share - diluted
$1.65
$1.69
$6.59
$6.89
Note: This table contains forward-looking
statements. Please see paragraph regarding forward-looking
statements earlier in this document.
CAMDEN
NON-GAAP FINANCIAL
MEASURES
DEFINITIONS &
RECONCILIATIONS
(In thousands, except per share
amounts)
(Unaudited)
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. Our definition of NOI 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 net
income to net operating income is provided below:
Three months ended December
31,
Twelve months ended December
31,
2023
2022
2023
2022
Net income
$224,175
$47,471
$410,553
$661,508
Less: Fee and asset management income
(1,078
)
(931
)
(3,451
)
(5,188
)
Less: Interest and other income
(322
)
(138
)
(879
)
(3,019
)
Less: Income/(loss) on deferred
compensation plans
(9,981
)
(8,813
)
(15,398
)
19,637
Plus: Property management expense
8,767
7,373
33,706
28,601
Plus: Fee and asset management expense
440
426
1,717
2,516
Plus: General and administrative
expense
15,744
15,887
62,506
60,413
Plus: Interest expense
33,968
30,668
133,395
113,424
Plus: Depreciation and amortization
expense
144,956
147,271
574,813
577,020
Plus: Expense/(benefit) on deferred
compensation plans
9,981
8,813
15,398
(19,637
)
Plus: Loss on early retirement of debt
—
—
2,513
—
Less: Gain on sale of operating
properties, including land
(176,497
)
—
(225,416
)
(36,372
)
Less: Gain on acquisition of
unconsolidated joint venture interests
—
—
—
(474,146
)
Less: Equity in income of joint
ventures
—
—
—
(3,048
)
Plus: Income tax expense
897
753
3,650
2,966
NOI
$251,050
$248,780
$993,107
$924,675
"Same Property" Communities
$202,942
$202,930
$804,175
$770,987
Non-"Same Property" Communities
41,983
39,753
163,983
123,942
Development and Lease-Up Communities
1,262
25
2,615
28
Disposition/Other
4,863
6,072
22,334
29,718
NOI
$251,050
$248,780
$993,107
$924,675
CAMDEN
NON-GAAP FINANCIAL
MEASURES
DEFINITIONS &
RECONCILIATIONS
(In thousands, except per share
amounts)
(Unaudited)
EBITDAre and Adjusted
EBITDAre
Earnings Before Interest, Taxes, Depreciation, and Amortization
for Real Estate (“EBITDAre”) and Adjusted EBITDAre are supplemental
measures of our financial performance. EBITDAre is calculated in
accordance with the definition adopted by NAREIT as earnings before
interest, taxes, depreciation and amortization plus or minus losses
and gains on the disposition of depreciated property, including
gains (losses) on change of control, plus impairment write-downs of
depreciated property with adjustments to reflect the Company’s
share of EBITDAre of unconsolidated joint ventures.
Adjusted EBITDAre represents EBITDAre as further adjusted for
non-core items. Adjusted EBITDAre excludes equity in (income) loss
of joint ventures, (gain) loss on land, and loss on early
retirement of debt. The Company considers EBITDAre and Adjusted
EBITDAre to be appropriate supplemental measures 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. Annualized Adjusted EBITDAre is
Adjusted EBITDAre as reported for the period multiplied by 4 for
quarter results. A reconciliation of net income to EBITDAre and
adjusted EBITDAre is provided below:
Three months ended December
31,
Twelve months ended December
31,
2023
2022
2023
2022
Net income
$224,175
$47,471
$410,553
$661,508
Plus: Interest expense
33,968
30,668
133,395
113,424
Plus: Depreciation and amortization
expense
144,956
147,271
574,813
577,020
Plus: Income tax expense
897
753
3,650
2,966
Less: Gain on sale of operating
properties, including land
(176,497
)
—
(225,416
)
(36,372
)
Less: Gain on acquisition of
unconsolidated joint venture interests
—
—
—
(474,146
)
EBITDAre
$227,499
$226,163
$896,995
$844,400
Plus: Loss on early retirement of debt
—
—
2,513
—
Plus: Casualty-related expenses, net of
recoveries
683
625
1,186
2,282
Plus: Severance
—
—
—
896
Plus: Legal costs and settlements, net of
recoveries
196
—
280
555
Plus: Expensed development & other
pursuit costs
—
—
471
—
Less: Equity in income of joint
ventures
—
—
—
(3,048
)
Less: Net below market lease
amortization
—
(722
)
—
(8,467
)
Less: Miscellaneous (income)/expense
(a)
—
—
(364
)
(2,071
)
Adjusted EBITDAre
$228,378
$226,066
$901,081
$834,547
Annualized Adjusted EBITDAre
$913,512
$904,264
$901,081
$834,547
Net Debt to Annualized Adjusted
EBITDAre
The Company believes Net Debt to Annualized Adjusted EBITDAre 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 EBITDAre for the following
periods:
Net Debt:
Average monthly balance for
the
Average monthly balance for
the
Three months ended December
31,
Twelve months ended December
31,
2023
2022
2023
2022
Unsecured notes payable
$3,394,948
$3,188,976
$3,350,767
$3,242,448
Secured notes payable
330,108
514,940
391,745
386,096
Total debt
3,725,056
3,703,916
3,742,512
3,628,544
Less: Cash and cash equivalents
(95,392
)
(3,562
)
(30,257
)
(186,178
)
Net debt
$3,629,664
$3,700,354
$3,712,255
$3,442,366
Net Debt to Annualized Adjusted
EBITDAre:
Three months ended December
31,
Twelve months ended December
31,
2023
2022
2023
2022
Net debt
$3,629,664
$3,700,354
$3,712,255
$3,442,366
Annualized Adjusted EBITDAre
913,512
904,264
901,081
834,547
Net Debt to Annualized Adjusted
EBITDAre
4.0x
4.1x
4.1x
4.1x
CAMDEN
2024 FINANCIAL OUTLOOK
AS OF FEBRUARY 1, 2024
(Unaudited)
Earnings Guidance - Per Diluted
Share
Expected FFO per share - diluted
$6.54 - $6.84
Expected CORE FFO per share - diluted
$6.59 - $6.89
"Same Property" Communities
Number of Units - 2024
55,866
2023 Base Net Operating Income
$933 million
Total Revenue Growth
0.50% - 2.50%
Total Expense Growth
3.75% - 5.25%
Net Operating Income Growth
(1.50%) - 1.50%
Impact from 1.0% change in NOI Growth is
approximately $0.084 / share
Bad Debt Midpoint
1.1%
Capitalized Expenditures
Recurring
$101 - $105 million
Revenue Enhancing Capex and Repositions
(a)
$90 - $94 million
Non - Recurring Capital Expenditures
$23 - $25 million
Acquisitions/Dispositions
Acquisition Volume (consolidated on
balance sheet)
$0 - $500 million
Disposition Volume (consolidated on
balance sheet)
$115 - $615 million
Development
Development Starts (consolidated on
balance sheet)
$0 - $300 million
Development Spend (consolidated on balance
sheet)
$160 - $190 million
Non-Property Income
Non-Property Income
$7 - $8 million
Includes: Fee and asset management income
and interest and other income
CORE Corporate Expenses
General and Administrative Expenses
$61 - $65 million
Property Management Expense
$34 - $37 million
Fee and Asset Management Expense
$1 - $2 million
Corporate G&A
Depreciation/Amortization
$11 - $14 million
Income Tax Expense
$3 - $4 million
Non-CORE Corporate Expenses / Insurance
Adjustments
$5 - $6 million
Capital
Expensed Interest
$124 - $128 million
Capitalized Interest
$17 - $18 million
(a) Revenue Enhancing Capex and
Repositions are capital expenditures that improve a community's
cash flow and competitive position, typically kitchen and bath
upgrades, or other new amenities.
Note: This table contains forward-looking
statements. Please see the paragraph regarding forward-looking
statements on page 2 of this document. Additionally, please refer
to the following pages for definitions and reconciliations of all
non-GAAP financial measures presented in this document.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240201364593/en/
Kim Callahan, 713-354-2549
Camden Property (NYSE:CPT)
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