CPT Camden Property Trust

Camden Property Trust (NYSE:CPT) (the "Company") announced today operating results for the three months ended March 31, 2025. 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 months ended March 31, 2025 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 March 31,

Per Diluted Share

2025

2024

EPS

$0.36

$0.77

FFO

$1.70

$1.67

Core FFO

$1.72

$1.70

Core AFFO

$1.58

$1.50

 

Three Months Ended

1Q25 Guidance

1Q25 Guidance

Per Diluted Share

March 31, 2025

Midpoint

Variance

EPS

$0.36

$0.34

$0.02

FFO

$1.70

$1.66

$0.04

Core FFO

$1.72

$1.68

$0.04

"We are pleased to report strong first quarter results, and a raise to our full-year 2025 earnings guidance,” said Richard J. Campo, Camden’s Chairman and CEO. “Core FFO exceeded the midpoint of our guidance by $0.04 per share in the first quarter, with $0.02 resulting from higher than anticipated revenues and the remaining $0.02 from lower interest expense and the timing of other income and expense categories. We are maintaining our guidance for same property growth given recent uncertainty in the macro-economic environment. However, we expect to incur lower than anticipated borrowing costs for the remainder of the year due to our new commercial paper program, resulting in a revised midpoint of $6.78 per share for full-year 2025 Core FFO compared to our original guidance of $6.75 per share."

 

Quarterly Growth

Sequential Growth

Same Property Results

1Q25 vs. 1Q24

1Q25 vs. 4Q24

Revenues

0.8%

0.4%

Expenses

0.5%

2.2%

Net Operating Income ("NOI")

0.9%

(0.5)%

Same Property Results

1Q25

1Q24

4Q24

Occupancy

95.4%

95.0%

95.3%

For 2025, the Company defines same property communities as communities wholly-owned and stabilized since January 1, 2024, 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 Effective (1)

1Q25

1Q24

4Q24

Effective New Lease Rates

(3.1)%

(4.2)%

(4.6)%

Effective Renewal Rates

3.3%

4.0%

3.3%

Effective Blended Lease Rates

(0.1)%

(0.8)%

(1.1)%

(1)

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

Occupancy, Bad Debt and Turnover Data

1Q25

1Q24

4Q24

Occupancy

95.4%

95.0%

95.3%

Bad Debt

0.6%

0.8%

0.7%

Annualized Gross Turnover

40%

45%

41%

Annualized Net Turnover

31%

34%

31%

Development Activity

During the quarter, construction commenced at Camden Nations in Nashville, TN. Additionally, leasing began at Camden Village District in Raleigh, NC and leasing continued at Camden Woodmill Creek in Spring, TX, Camden Durham in Durham, NC, and Camden Long Meadow Farms in Richmond, TX.

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

 

 

Total

Total

% Leased

Community Name

Location

Homes

Cost

as of 4/28/2025

Camden Woodmill Creek

Spring, TX

189

$72.4

94%

Camden Durham

Durham, NC

420

145.2

90%

Camden Long Meadow Farms

Richmond, TX

188

72.1

64%

Total

 

797

$289.7

 

Development Communities - Construction Ongoing ($ in millions)

 

 

Total

Total

% Leased

Community Name

Location

Homes

Estimated Cost

as of 4/28/2025

Camden Village District

Raleigh, NC

369

$138.0

14%

Camden South Charlotte

Charlotte, NC

420

163.0

 

Camden Blakeney

Charlotte, NC

349

154.0

 

Camden Nations

Nashville, TN

393

184.0

 

Total

 

1,531

$639.0

 

Acquisition Activity

During the quarter, the Company acquired Camden Leander, a 352-home apartment community located in the Austin, TX metropolitan area for approximately $67.7 million and Camden West Nashville, a 435-home apartment community located in Nashville, TN for approximately $131.3 million.

Capital Markets Transaction

During the quarter, the Company established a commercial paper program which allows the issuance, from time to time, of commercial paper notes up to a maximum aggregate amount outstanding of $600 million. The net proceeds of the issuances under the commercial paper program are expected to be used for general corporate purposes, which may include property acquisitions and development in the ordinary course of business, capital expenditures, and working capital. As of March 31, 2025, an aggregate of $425.8 million was outstanding under the $600 million commercial paper program.

Liquidity Analysis

As of March 31, 2025, Camden had approximately $772.9 million of liquidity comprised of approximately $26.2 million in cash and cash equivalents, and approximately $746.7 million of availability under its unsecured credit facility and commercial paper program. At quarter-end, the Company had approximately $350.7 million left to fund under its existing wholly-owned development pipeline.

Earnings Guidance

Camden updated its earnings guidance for 2025 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for second quarter 2025 as detailed below. Expected EPS excludes gains, if any, from future real estate transactions.

 

2Q25

2025

2025 Midpoint

Per Diluted Share

Range

Range

Current

Prior

Change

EPS

$0.27 - $0.31

$1.01 - $1.31

$1.16

$1.15

$0.01

FFO

$1.65 - $1.69

$6.53 - $6.83

$6.68

$6.65

$0.03

Core FFO(1)

$1.67 - $1.71

$6.63 - $6.93

$6.78

$6.75

$0.03

(1)

The Company's 2025 core FFO guidance excludes approximately $0.10 per share of non-core charges for legal costs and settlements and expensed transaction pursuit costs.

 

2025

2025 Midpoint

Same Property Growth Guidance

Range

Current

Prior

Change

Revenues

0.00% - 2.00%

1.00%

1.00%

0.00%

Expenses

2.25% - 3.75%

3.00%

3.00%

0.00%

NOI

(1.50%) - 1.50%

0.00%

0.00%

0.00%

Camden intends to update its earnings guidance to the market on a quarterly basis. Additional information on the Company’s 2025 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.

Conference Call

Friday, May 2, 2025 at 10:00 AM CT Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061; Passcode: 5843308 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 176 properties containing 59,647 apartment homes across the United States. Upon completion of 4 properties currently under development, the Company’s portfolio will increase to 61,178 apartment homes in 180 properties. Camden has been recognized as one of the 100 Best Companies to Work For® by FORTUNE magazine for 18 consecutive years, most recently ranking #18. 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,

 

 

2025

 

 

2024

 

OPERATING DATA

 

 

 

 

 

Property revenues (a)

$

390,565

 

$

383,141

 

 

 

 

Property expenses

 

 

Property operating and maintenance

 

89,698

 

 

89,044

 

Real estate taxes

 

49,722

 

 

49,501

 

Total property expenses

 

139,420

 

 

138,545

 

 

 

 

Non-property income

 

 

Fee and asset management

 

2,487

 

 

1,284

 

Interest and other income

 

10

 

 

1,768

 

Income on deferred compensation plans

 

1,198

 

 

5,819

 

Total non-property income

 

3,695

 

 

8,871

 

 

 

 

Other expenses

 

 

Property management

 

9,895

 

 

9,394

 

Fee and asset management

 

671

 

 

443

 

General and administrative

 

18,708

 

 

16,693

 

Interest

 

33,790

 

 

32,537

 

Depreciation and amortization

 

149,252

 

 

144,802

 

Expense on deferred compensation plans

 

1,198

 

 

5,819

 

Total other expenses

 

213,514

 

 

209,688

 

 

 

 

Loss on early retirement of debt

 

—

 

 

(921

)

Gain on sale of operating property

 

—

 

 

43,806

 

Income from continuing operations before income taxes

 

41,326

 

 

86,664

 

Income tax expense

 

(559

)

 

(905

)

Net income

 

40,767

 

 

85,759

 

Net Income allocated to non-controlling interests

 

(1,945

)

 

(1,870

)

Net income attributable to common shareholders

$

38,822

 

$

83,889

 

 

 

 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

 

Net income

$

40,767

 

$

85,759

 

Other comprehensive income

 

 

Unrealized gain on cash flow hedging activities

 

—

 

 

85

 

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

 

351

 

 

1,089

 

Comprehensive income

 

41,118

 

 

86,933

 

Net income allocated to non-controlling interests

 

(1,945

)

 

(1,870

)

Comprehensive income attributable to common shareholders

$

39,173

 

$

85,063

 

 

 

 

PER SHARE DATA

 

 

 

 

 

Total earnings per common share - basic

$

0.36

 

$

0.77

 

Total earnings per common share - diluted

 

0.36

 

 

0.77

 

 

 

 

Weighted average number of common shares outstanding:

 

 

Basic

 

108,530

 

 

108,706

 

Diluted

 

108,597

 

 

108,729

 

(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, 2025, we recognized $390.6 million of property revenue which consisted of approximately $348.3 million of rental revenue and approximately $42.3 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 $383.1 million recognized for the three months ended March 31, 2024, made up of approximately $341.5 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. Revenue related to utility rebilling to residents was $11.4 million and $10.7 million for the three months ended March 31, 2025 and 2024,

 

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,

 

 

2025

 

 

2024

 

FUNDS FROM OPERATIONS

 

 

 

 

 

Net income attributable to common shareholders

$

38,822

 

$

83,889

 

Real estate depreciation and amortization

 

146,168

 

 

141,847

 

Income allocated to non-controlling interests

 

1,945

 

 

1,870

 

Gain on sale of property

 

—

 

 

(43,806

)

Funds from operations

$

186,935

 

$

183,800

 

 

 

 

Plus: Casualty-related expenses, net of recoveries (a)

 

130

 

 

1,523

 

Plus: Severance (b)

 

—

 

 

506

 

Plus: Legal costs and settlements (b)

 

1,872

 

 

852

 

Plus: Loss on early retirement of debt

 

—

 

 

921

 

Plus: Expensed transaction, development, and other pursuit costs (b)

 

881

 

 

—

 

Core funds from operations

$

189,818

 

$

187,602

 

 

 

 

Less: Recurring capitalized expenditures (c)

 

(16,098

)

 

(22,025

)

 

 

 

Core adjusted funds from operations

$

173,720

 

$

165,577

 

 

 

 

PER SHARE DATA

 

 

Funds from operations - diluted

$

1.70

 

$

1.67

 

Core funds from operations - diluted

 

1.72

 

 

1.70

 

Core adjusted funds from operations - diluted

 

1.58

 

 

1.50

 

Distributions declared per common share

 

1.05

 

 

1.03

 

 

 

 

Weighted average number of common shares outstanding:

 

 

FFO/Core FFO/Core AFFO - diluted

 

110,191

 

 

110,323

 

 

 

 

PROPERTY DATA

 

 

Total operating properties (end of period) (d)

 

176

 

 

171

 

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

 

59,647

 

 

58,061

 

Total operating apartment homes (weighted average)

 

59,074

 

 

58,336

 

(a)

Non-core adjustment generally recorded within Property NOI.

 

 

(b)

Non-core adjustment generally recorded within General and Administrative Expenses.

 

 

(c)

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

 

 

(d)

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,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

2025

2024

2024

2024

2024

ASSETS

 

 

 

 

 

Real estate assets, at cost

 

 

 

 

 

Land

$

1,763,468

 

$

1,722,526

 

$

1,718,185

 

$

1,716,515

 

$

1,706,983

 

Buildings and improvements

 

11,550,852

 

 

11,319,460

 

 

11,222,261

 

 

11,148,312

 

 

11,014,440

 

 

 

13,314,320

 

 

13,041,986

 

 

12,940,446

 

 

12,864,827

 

 

12,721,423

 

Accumulated depreciation

 

(5,011,583

)

 

(4,867,422

)

 

(4,725,152

)

 

(4,582,440

)

 

(4,439,710

)

Net operating real estate assets

 

8,302,737

 

 

8,174,564

 

 

8,215,294

 

 

8,282,387

 

 

8,281,713

 

Properties under development and land

 

403,657

 

 

401,542

 

 

418,209

 

 

439,758

 

 

477,481

 

Total real estate assets

 

8,706,394

 

 

8,576,106

 

 

8,633,503

 

 

8,722,145

 

 

8,759,194

 

Accounts receivable – affiliates

 

8,950

 

 

8,991

 

 

8,993

 

 

9,903

 

 

10,350

 

Other assets, net (a)

 

239,999

 

 

234,838

 

 

262,339

 

 

245,625

 

 

233,137

 

Cash and cash equivalents

 

26,182

 

 

21,045

 

 

31,234

 

 

93,932

 

 

92,693

 

Restricted cash

 

11,607

 

 

11,164

 

 

11,112

 

 

7,969

 

 

8,230

 

Total assets

$

8,993,132

 

$

8,852,144

 

$

8,947,181

 

$

9,079,574

 

$

9,103,604

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Liabilities

 

 

 

 

 

Notes payable

 

 

 

 

 

Unsecured

$

3,405,255

 

$

3,155,233

 

$

3,121,499

 

$

3,222,569

 

$

3,223,285

 

Secured

 

330,416

 

 

330,358

 

 

330,299

 

 

330,241

 

 

330,184

 

Accounts payable and accrued expenses

 

195,197

 

 

215,179

 

 

221,880

 

 

212,247

 

 

213,896

 

Accrued real estate taxes

 

46,192

 

 

78,529

 

 

131,693

 

 

90,702

 

 

46,612

 

Distributions payable

 

115,983

 

 

113,549

 

 

113,505

 

 

113,506

 

 

113,556

 

Other liabilities (b)

 

212,871

 

 

212,107

 

 

214,027

 

 

183,377

 

 

182,443

 

Total liabilities

 

4,305,914

 

 

4,104,955

 

 

4,132,903

 

 

4,152,642

 

 

4,109,976

 

 

 

 

 

 

 

Equity

 

 

 

 

 

Common shares of beneficial interest

 

1,157

 

 

1,158

 

 

1,158

 

 

1,157

 

 

1,157

 

Additional paid-in capital

 

5,936,982

 

 

5,930,729

 

 

5,927,477

 

 

5,924,608

 

 

5,919,851

 

Distributions in excess of net income attributable to common shareholders

 

(973,416

)

 

(897,931

)

 

(826,725

)

 

(710,633

)

 

(641,663

)

Treasury shares

 

(351,092

)

 

(359,732

)

 

(359,989

)

 

(359,975

)

 

(356,880

)

Accumulated other comprehensive income/(loss) (c)

 

1,325

 

 

974

 

 

641

 

 

283

 

 

(78

)

Total common equity

 

4,614,956

 

 

4,675,198

 

 

4,742,562

 

 

4,855,440

 

 

4,922,387

 

Non-controlling interests

 

72,262

 

 

71,991

 

 

71,716

 

 

71,492

 

 

71,241

 

Total equity

 

4,687,218

 

 

4,747,189

 

 

4,814,278

 

 

4,926,932

 

 

4,993,628

 

Total liabilities and equity

$

8,993,132

 

$

8,852,144

 

$

8,947,181

 

$

9,079,574

 

$

9,103,604

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Includes net deferred charges of:

$

2,730

 

$

2,675

 

$

3,244

 

$

3,703

 

$

4,286

 

 

 

 

 

 

 

(b) Includes deferred revenues of:

$

760

 

$

767

 

$

830

 

$

894

 

$

958

 

 

 

 

 

 

 

(c) 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.

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 and losses from the sale of certain real estate assets, gains and losses from change in control, impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, 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 and losses on dispositions of real estate, impairment write-downs of certain real estate assets, 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 Non-Core Adjustments. We consider Core FFO to be a helpful supplemental measure of operating performance as it 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 March 31,

 

 

2025

 

 

2024

 

Net income attributable to common shareholders

$

38,822

 

$

83,889

 

Real estate depreciation and amortization

 

146,168

 

 

141,847

 

Income allocated to non-controlling interests

 

1,945

 

 

1,870

 

Gain on sale of property

 

—

 

 

(43,806

)

Funds from operations

$

186,935

 

$

183,800

 

 

 

 

Plus: Casualty-related expenses, net of recoveries

 

130

 

 

1,523

 

Plus: Severance

 

—

 

 

506

 

Plus: Legal costs and settlements

 

1,872

 

 

852

 

Plus: Loss on early retirement of debt

 

—

 

 

921

 

Plus: Expensed transaction, development, and other pursuit costs

 

881

 

 

—

 

Core funds from operations

$

189,818

 

$

187,602

 

 

 

 

Less: Recurring capitalized expenditures

 

(16,098

)

 

(22,025

)

 

 

 

Core adjusted funds from operations

$

173,720

 

$

165,577

 

 

 

 

Weighted average number of common shares outstanding:

 

 

EPS diluted

 

108,597

 

 

108,729

 

FFO/Core FFO/ Core AFFO diluted

 

110,191

 

 

110,323

 

CAMDEN

 

NON-GAAP FINANCIAL MEASURES

DEFINITIONS & RECONCILIATIONS

(In thousands, except per share amounts)

 

(Unaudited)

 

Reconciliation of FFO, Core FFO, and Core AFFO per share

 

Three Months Ended March 31,

 

 

2025

 

 

2024

 

Total Earnings Per Common Share - Diluted

$

0.36

 

$

0.77

 

Real estate depreciation and amortization

 

1.32

 

 

1.28

 

Income allocated to non-controlling interests

 

0.02

 

 

0.02

 

Gain on sale of operating property

 

—

 

 

(0.40

)

FFO per common share - Diluted

$

1.70

 

$

1.67

 

 

 

 

Plus: Casualty-related expenses, net of recoveries

 

—

 

 

0.01

 

Plus: Severance

 

—

 

 

—

 

Plus: Legal costs and settlements

 

0.01

 

 

0.01

 

Plus: Loss on early retirement of debt

 

—

 

 

0.01

 

Plus: Expensed transaction, development, and other pursuit costs

 

0.01

 

 

—

 

Core FFO per common share - Diluted

$

1.72

 

$

1.70

 

 

 

 

Less: Recurring capitalized expenditures

 

(0.14

)

 

(0.20

)

 

 

 

Core AFFO per common share - Diluted

$

1.58

 

$

1.50

 

 

 

 

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:

 

2Q25 Range

 

2025 Range

 

Low

High

 

Low

High

Expected earnings per common share - diluted

$

0.27

$

0.31

 

$

1.01

$

1.31

Expected real estate depreciation and amortization

 

1.36

 

1.36

 

 

5.45

 

5.45

Expected income allocated to non-controlling interests

 

0.02

 

0.02

 

 

0.07

 

0.07

Expected FFO per share - diluted

$

1.65

$

1.69

 

$

6.53

$

6.83

Anticipated Adjustments to FFO

 

0.02

 

0.02

 

 

0.10

 

0.10

Expected Core FFO per share - diluted

$

1.67

$

1.71

 

$

6.63

$

6.93

 

 

 

 

 

 

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 total property expenses. 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 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 March 31,

 

 

2025

 

 

2024

 

Net income

$

40,767

 

$

85,759

 

Less: Fee and asset management income

 

(2,487

)

 

(1,284

)

Less: Interest and other income

 

(10

)

 

(1,768

)

Less: Income on deferred compensation plans

 

(1,198

)

 

(5,819

)

Plus: Property management expense

 

9,895

 

 

9,394

 

Plus: Fee and asset management expense

 

671

 

 

443

 

Plus: General and administrative expense

 

18,708

 

 

16,693

 

Plus: Interest expense

 

33,790

 

 

32,537

 

Plus: Depreciation and amortization expense

 

149,252

 

 

144,802

 

Plus: Expense on deferred compensation plans

 

1,198

 

 

5,819

 

Plus: Loss on early retirement of debt

 

—

 

 

921

 

Less: Gain on sale of operating property

 

—

 

 

(43,806

)

Plus: Income tax expense

 

559

 

 

905

 

NOI

$

251,145

 

$

244,596

 

 

 

 

"Same Property" Communities

$

243,369

 

$

241,165

 

Non-"Same Property" Communities

 

4,759

 

 

2,596

 

Development and Lease-Up Communities

 

2,013

 

 

2

 

Disposition/Other

 

1,004

 

 

833

 

NOI

$

251,145

 

$

244,596

 

 

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 from the sale of certain real estate assets, including gains/losses on change of control, plus impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, and adjustments to reflect the Company’s share of EBITDAre of unconsolidated joint ventures.

Adjusted EBITDAre represents EBITDAre as further adjusted for non-core items. 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, and impairment write-downs of certain real estate assets. 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 March 31,

 

 

2025

 

 

2024

 

Net income

$

40,767

$

85,759

 

Plus: Interest expense

 

33,790

 

 

32,537

 

Plus: Depreciation and amortization expense

 

149,252

 

 

144,802

 

Plus: Income tax expense

 

559

 

 

905

 

Less: Gain on sale of operating property

 

—

 

 

(43,806

)

EBITDAre

$

224,368

 

$

220,197

 

 

 

 

Plus: Casualty-related expenses, net of recoveries

 

130

 

 

1,523

 

Plus: Severance

 

—

 

 

506

 

Plus: Legal costs and settlements

 

1,872

 

 

852

 

Plus: Loss on early retirement of debt

 

—

 

 

921

 

Plus: Expensed transaction, development, and other pursuit costs

 

881

 

 

—

 

Adjusted EBITDAre

$

227,251

 

$

223,999

 

Annualized Adjusted EBITDAre

$

909,004

 

$

895,996

 

 

 

 

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

 

Three months ended March 31,

 

 

2025

 

 

2024

 

Unsecured notes payable

$

3,404,088

 

$

3,245,471

 

Secured notes payable

 

330,396

 

 

330,165

 

Total average debt

 

3,734,484

 

 

3,575,636

 

Less: Average cash and cash equivalents

 

(12,302

)

 

(66,007

)

Net debt

$

3,722,182

 

$

3,509,629

 

 

 

 

 

 

 

Net Debt to Annualized Adjusted EBITDAre:

 

Three months ended March 31,

 

 

2025

 

 

2024

 

Net debt

$

3,722,182

$

3,509,629

Annualized Adjusted EBITDAre

 

909,004

 

 

895,996

 

Net Debt to Annualized Adjusted EBITDAre

4.1x

 

 

3.9x

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250501001678/en/

Kim Callahan, 713-354-2549