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Camden Property Trust Announces Second Quarter 2024 Operating Results

Camden Property Trust (NYSE:CPT) (the "Company") announced today operating results for the three and six months ended June 30, 2024. 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 six months ended June 30, 2024 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 June 30,

Six Months Ended June 30,

Per Diluted Share

2024

2023

2024

2023

EPS

$

0.40

$

0.84

$

1.17

$

1.22

FFO

$

1.71

$

1.67

$

3.37

$

3.33

Core FFO

$

1.71

$

1.70

$

3.41

$

3.36

Core AFFO

$

1.44

$

1.51

$

2.94

$

3.01

 
 

 

Three Months Ended

2Q24 Guidance

2Q24 Guidance

Per Diluted Share

June 30, 2024

Midpoint

Variance

EPS

$

0.40

$

0.36

$

0.04

FFO

$

1.71

$

1.66

$

0.05

Core FFO

$

1.71

$

1.67

$

0.04

 
 

 

Quarterly Growth

Sequential Growth

Year-To-Date Growth

Same Property Results

2Q24 vs. 2Q23

2Q24 vs. 1Q24

2024 vs. 2023

Revenues

1.4

%

0.5

%

2.0

%

Expenses

2.5

%

0.8

%

2.7

%

Net Operating Income ("NOI")

0.9

%

0.4

%

1.6

%

 
 

Same Property Results

2Q24

2Q23

1Q24

Occupancy

95.3

%

95.5

%

95.0

%

 

For 2024, the Company defines same property communities as communities wholly-owned and stabilized since January 1, 2023, 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)

July 2024*

July 2023

2Q24

2Q23

Signed New Lease Rates

(1.6

)%

1.6

%

(1.8

)%

2.4

%

Signed Renewal Rates

4.0

%

5.2

%

3.7

%

6.0

%

Signed Blended Lease Rates

0.9

%

3.3

%

0.8

%

4.0

%

New Lease and Renewal Data - Date Effective (2)

July 2024*

July 2023

2Q24

2Q23

Effective New Lease Rates

(1.5

)%

2.0

%

(2.6

)%

2.3

%

Effective Renewal Rates

3.7

%

6.4

%

3.3

%

6.4

%

Effective Blended Lease Rates

1.2

%

4.1

%

0.0

%

4.0

%

*Preliminary data as of July 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

July 2024*

July 2023

2Q24

2Q23

Occupancy

95.6

%

95.6

%

95.3

%

95.5

%

Bad Debt

NA

1.7

%

0.8

%

1.5

%

Annualized Gross Turnover

59

%

65

%

53

%

54

%

Annualized Net Turnover

47

%

53

%

42

%

45

%

*Preliminary data as of July 31, 2024

Development Activity

During the quarter, construction was completed at Camden Woodmill Creek in The Woodlands, TX. Construction commenced at Camden South Charlotte in Charlotte, NC and Camden Blakeney in Charlotte, NC. Additionally, leasing continued at 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 7/31/2024

Camden Woodmill Creek

The Woodlands, TX

189

$

70.9

65

%

 

Development Communities - Construction Ongoing ($ in millions)

 

 

 

Total

Total

% Leased

Community Name

Location

Homes

Estimated Cost

as of 7/31/2024

Camden Durham

Durham, NC

420

$

145.0

69

%

Camden Long Meadow Farms

Richmond, TX

188

 

75.0

32

%

Camden Village District

Raleigh, NC

369

 

138.0

 

Camden South Charlotte

Charlotte, NC

420

 

163.0

 

Camden Blakeney

Charlotte, NC

349

 

154.0

 

Total

 

1,746

$

675.0

 

 

Share Repurchase

During the quarter, Camden repurchased 44,692 common shares at an average price of $96.52 per share for a total of $4.3 million. Year to date, Camden repurchased 515,974 common shares at an average price of $96.88 for approximately $50.0 million. The Company currently has approximately $450.0 million remaining under its stock repurchase program.

Liquidity Analysis

As of June 30, 2024, Camden had nearly $1.3 billion of liquidity comprised of approximately $93.9 million in cash and cash equivalents, and $1.2 billion of availability under its unsecured credit facility. At quarter-end, the Company had approximately $297.9 million left to fund under its existing wholly-owned development pipeline.

Hurricane Impact

Subsequent to the quarter-end, Hurricane Beryl impacted several of our multifamily communities in the Houston, TX area. We are currently in the preliminary stage of assessing the effect of this event and expect the storm-related expenses for this incident to be in the range of approximately $2.0 million to $3.0 million, net of insurance proceeds. These estimates are preliminary and may change as we receive additional information.

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 third quarter 2024 as detailed below. Expected EPS excludes gains, if any, from future real estate transactions.

 

 

3Q24

2024

2024 Midpoint

Per Diluted Share

Range

Range

Current

Prior

Change

EPS

$0.31 - $0.35

$1.83 - $1.93

$

1.88

$

1.86

$

0.02

FFO

$1.63 - $1.67

$6.67 - $6.77

$

6.72

$

6.69

$

0.03

Core FFO(1)

$1.66 - $1.70

$6.74 - $6.84

$

6.79

$

6.74

$

0.05

(1) The Company's 2024 core FFO guidance includes approximately $0.07 per share of non-core adjustments for casualty-related expenses, legal costs, loss on early retirement of debt, severance, and expensed pursuit costs.

 

 

2024

2024 Midpoint

Same Property Growth Guidance

Range

Current

Prior

Change

Revenues

1.00% - 2.00%

1.50

%

1.50

%

0.00

%

Expenses

2.35% - 3.35%

2.85

%

3.25

%

(0.40

)%

NOI

(0.25%) - 1.75%

0.75

%

0.50

%

0.25

%

 

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.

Conference Call

Friday, August 2, 2024 at 10:00 AM CT

Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061; Passcode: 5174172

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 58,250 apartment homes across the United States. Upon completion of 5 properties currently under development, the Company’s portfolio will increase to 59,996 apartment homes in 177 properties. Camden has been recognized as one of the 100 Best Companies to Work For® by FORTUNE magazine for 17 consecutive years, most recently ranking #24. 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 June 30,

 

Six Months Ended June 30,

 

2024

2023

 

2024

2023

OPERATING DATA

 

 

 

 

 

 

 

 

 

 

 

Property revenues (a)

$

387,150

 

$

385,499

 

 

$

770,291

 

$

763,662

 

 

 

 

 

 

 

Property expenses

 

 

 

 

 

Property operating and maintenance

 

90,126

 

 

87,742

 

 

 

179,170

 

 

173,027

 

Real estate taxes

 

48,763

 

 

49,855

 

 

 

98,264

 

 

99,251

 

Total property expenses

 

138,889

 

 

137,597

 

 

 

277,434

 

 

272,278

 

 

 

 

 

 

 

Non-property income

 

 

 

 

��

Fee and asset management

 

2,606

 

 

718

 

 

 

3,890

 

 

1,296

 

Interest and other income

 

1,598

 

 

431

 

 

 

3,366

 

 

493

 

Income on deferred compensation plans

 

1,073

 

 

2,844

 

 

 

6,892

 

 

8,756

 

Total non-property income

 

5,277

 

 

3,993

 

 

 

14,148

 

 

10,545

 

 

 

 

 

 

 

Other expenses

 

 

 

 

 

Property management

 

9,846

 

 

8,751

 

 

 

19,240

 

 

17,048

 

Fee and asset management

 

475

 

 

420

 

 

 

918

 

 

833

 

General and administrative

 

18,154

 

 

15,863

 

 

 

34,847

 

 

31,219

 

Interest

 

32,227

 

 

33,578

 

 

 

64,764

 

 

66,421

 

Depreciation and amortization

 

145,894

 

 

143,054

 

 

 

290,696

 

 

285,498

 

Expense on deferred compensation plans

 

1,073

 

 

2,844

 

 

 

6,892

 

 

8,756

 

Total other expenses

 

207,669

 

 

204,510

 

 

 

417,357

 

 

409,775

 

 

 

 

 

 

 

Loss on early retirement of debt

 

 

 

(2,513

)

 

 

(921

)

 

(2,513

)

Gain on sale of operating property

 

 

 

48,919

 

 

 

43,806

 

 

48,919

 

Income from continuing operations before income taxes

 

45,869

 

 

93,791

 

 

 

132,533

 

 

138,560

 

Income tax expense

 

(1,059

)

 

(851

)

 

 

(1,964

)

 

(2,001

)

Net income

 

44,810

 

 

92,940

 

 

 

130,569

 

 

136,559

 

Less income allocated to non-controlling interests

 

(1,893

)

 

(1,841

)

 

 

(3,763

)

 

(3,543

)

Net income attributable to common shareholders

$

42,917

 

$

91,099

 

 

$

126,806

 

$

133,016

 

 

 

 

 

 

 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

 

 

 

 

Net income

$

44,810

 

$

92,940

 

 

$

130,569

 

$

136,559

 

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

 

361

 

 

358

 

 

 

1,450

 

 

717

 

Comprehensive income

 

45,171

 

 

93,298

 

 

 

132,104

 

 

137,276

 

Less income allocated to non-controlling interests

 

(1,893

)

 

(1,841

)

 

 

(3,763

)

 

(3,543

)

Comprehensive income attributable to common shareholders

$

43,278

 

$

91,457

 

 

$

128,341

 

$

133,733

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

Total earnings per common share - basic

$

0.40

 

$

0.84

 

 

$

1.17

 

$

1.22

 

Total earnings per common share - diluted

 

0.40

 

 

0.84

 

 

 

1.17

 

 

1.22

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

Basic

 

108,406

 

 

108,663

 

 

 

108,556

 

 

108,616

 

Diluted

 

108,424

 

 

109,392

 

 

 

108,577

 

 

108,636

 

(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 June 30, 2024, we recognized $387.2 million of property revenue which consisted of approximately $344.6 million of rental revenue and approximately $42.6 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 $385.5 million recognized for the three months ended June 30, 2023, made up of approximately $343.1 million of rental revenue and approximately $42.4 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. For the six months ended June 30, 2024, we recognized $770.3 million of property revenue which consisted of approximately $686.2 million of rental revenue and approximately $84.1 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. This compared to the $763.7 million of property revenue recognized for the six months ended June 30, 2023, made up of approximately $680.3 million of rental revenue and approximately $83.4 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 $10.5 million and $10.3 million for the three months ended June 30, 2024 and 2023, respectively and was $21.2 million and $20.8 million for the six months ended June 30 2024 and 2023, 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 June 30,

 

Six Months Ended June 30,

 

2024

2023

 

2024

2023

FUNDS FROM OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to common shareholders

$

42,917

 

$

91,099

 

 

$

126,806

 

$

133,016

 

Real estate depreciation and amortization

 

142,895

 

 

140,013

 

 

 

284,742

 

 

279,400

 

Income allocated to non-controlling interests

 

1,893

 

 

1,841

 

 

 

3,763

 

 

3,543

 

Gain on sale of operating properties

 

 

 

(48,919

)

 

 

(43,806

)

 

(48,919

)

Funds from operations

$

187,705

 

$

184,034

 

 

$

371,505

 

$

367,040

 

 

 

 

 

 

 

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

 

(1,587

)

 

981

 

 

 

(64

)

 

939

 

Plus: Severance

 

 

 

 

 

 

506

 

 

 

Plus: Legal costs and settlements, net of recoveries

 

1,114

 

 

 

 

 

1,966

 

 

84

 

Plus: Loss on early retirement of debt

 

 

 

2,513

 

 

 

921

 

 

2,513

 

Plus: Expensed development & other pursuit costs

 

660

 

 

471

 

 

 

660

 

 

471

 

Less: Miscellaneous (income)/expense

 

 

 

(364

)

 

 

 

 

(364

)

Core funds from operations

$

187,892

 

$

187,635

 

 

$

375,494

 

$

370,683

 

 

 

 

 

 

 

Less: recurring capitalized expenditures (a)

 

(29,595

)

 

(21,034

)

 

 

(51,620

)

 

(38,613

)

 

 

 

 

 

 

Core adjusted funds from operations

$

158,297

 

$

166,601

 

 

$

323,874

 

$

332,070

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

Funds from operations - diluted

$

1.71

 

$

1.67

 

 

$

3.37

 

$

3.33

 

Core funds from operations - diluted

 

1.71

 

 

1.70

 

 

 

3.41

 

 

3.36

 

Core adjusted funds from operations - diluted

 

1.44

 

 

1.51

 

 

 

2.94

 

 

3.01

 

Distributions declared per common share

 

1.03

 

 

1.00

 

 

 

2.06

 

 

2.00

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

FFO/Core FFO/Core AFFO - diluted

 

110,018

 

 

110,262

 

 

 

110,171

 

 

110,232

 

 

 

 

 

 

 

PROPERTY DATA

 

 

 

 

 

Total operating properties (end of period) (b)

 

172

 

 

172

 

 

 

172

 

 

172

 

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

 

58,250

 

 

58,961

 

 

 

58,250

 

 

58,961

 

Total operating apartment homes (weighted average)

 

58,244

 

 

59,039

 

 

 

58,290

 

 

58,938

 

 

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

(b) Includes joint ventures and properties held for sale, if any.

Note: Please refer to the following pages for definitions and reconciliations of all non-GAAP financial measures presented in this document.

 

CAMDEN

BALANCE SHEETS

(In thousands)

(Unaudited)

 

Jun 30,

2024

Mar 31,

2024

Dec 31,

2023

Sep 30,

2023

Jun 30,

2023

ASSETS

 

 

 

 

 

Real estate assets, at cost

 

 

 

 

 

Land

$

1,716,515

 

$

1,706,983

 

$

1,711,873

 

$

1,732,804

 

$

1,727,182

 

Buildings and improvements

 

11,148,312

 

 

11,014,440

 

 

10,993,390

 

 

10,963,667

 

 

10,848,837

 

 

 

12,864,827

 

 

12,721,423

 

 

12,705,263

 

 

12,696,471

 

 

12,576,019

 

Accumulated depreciation

 

(4,582,440

)

 

(4,439,710

)

 

(4,332,524

)

 

(4,254,388

)

 

(4,113,095

)

Net operating real estate assets

 

8,282,387

 

 

8,281,713

 

 

8,372,739

 

 

8,442,083

 

 

8,462,924

 

Properties under development, including land

 

439,758

 

 

477,481

 

 

486,864

 

 

499,761

 

 

516,543

 

Total real estate assets

 

8,722,145

 

 

8,759,194

 

 

8,859,603

 

 

8,941,844

 

 

8,979,467

 

Accounts receivable – affiliates

 

9,903

 

 

10,350

 

 

11,905

 

 

12,057

 

 

12,121

 

Other assets, net (a)

 

245,625

 

 

233,137

 

 

244,182

 

 

237,594

 

 

239,958

 

Cash and cash equivalents

 

93,932

 

 

92,693

 

 

259,686

 

 

14,600

 

 

20,326

 

Restricted cash

 

7,969

 

 

8,230

 

 

8,361

 

 

8,369

 

 

8,531

 

Total assets

$

9,079,574

 

$

9,103,604

 

$

9,383,737

 

$

9,214,464

 

$

9,260,403

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Liabilities

 

 

 

 

 

Notes payable

 

 

 

 

 

Unsecured

$

3,222,569

 

$

3,223,285

 

$

3,385,309

 

$

3,323,057

 

$

3,352,415

 

Secured

 

330,241

 

 

330,184

 

 

330,127

 

 

330,071

 

 

330,015

 

Accounts payable and accrued expenses

 

212,247

 

 

213,896

 

 

222,599

 

 

211,759

 

 

192,613

 

Accrued real estate taxes

 

90,702

 

 

46,612

 

 

96,517

 

 

128,794

 

 

93,642

 

Distributions payable

 

113,506

 

 

113,556

 

 

110,427

 

 

110,463

 

 

110,465

 

Other liabilities (b)

 

183,377

 

 

182,443

 

 

186,987

 

 

175,341

 

 

189,711

 

Total liabilities

 

4,152,642

 

 

4,109,976

 

 

4,331,966

 

 

4,279,485

 

 

4,268,861

 

 

 

 

 

 

 

Equity

 

 

 

 

 

Common shares of beneficial interest

 

1,157

 

 

1,157

 

 

1,156

 

 

1,156

 

 

1,156

 

Additional paid-in capital

 

5,924,608

 

 

5,919,851

 

 

5,914,868

 

 

5,911,627

 

 

5,907,828

 

Distributions in excess of net income attributable to common shareholders

 

(710,633

)

 

(641,663

)

 

(613,651

)

 

(727,117

)

 

(666,218

)

Treasury shares

 

(359,975

)

 

(356,880

)

 

(320,364

)

 

(320,702

)

 

(320,675

)

Accumulated other comprehensive income/(loss) (c)

 

283

 

 

(78

)

 

(1,252

)

 

(699

)

 

(1,057

)

Total common equity

 

4,855,440

 

 

4,922,387

 

 

4,980,757

 

 

4,864,265

 

 

4,921,034

 

Non-controlling interests

 

71,492

 

 

71,241

 

 

71,014

 

 

70,714

 

 

70,508

 

Total equity

 

4,926,932

 

 

4,993,628

 

 

5,051,771

 

 

4,934,979

 

 

4,991,542

 

Total liabilities and equity

$

9,079,574

 

$

9,103,604

 

$

9,383,737

 

$

9,214,464

 

$

9,260,403

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Includes net deferred charges of:

$

3,703

 

$

4,286

 

$

5,879

 

$

6,481

 

$

7,033

 

 

 

 

 

 

 

(b) Includes deferred revenues of:

$

894

 

$

958

 

$

1,030

 

$

1,167

 

$

1,239

 

 

 

 

 

 

 

(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 (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 transaction, development and other pursuit costs, net of recoveries, net below market lease amortization, pandemic resident relief, (gain)/loss on sale of land, advocacy contributions, 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 June 30,

 

Six Months Ended June 30,

 

2024

2023

 

2024

2023

Net income attributable to common shareholders

$

42,917

 

$

91,099

 

 

$

126,806

 

$

133,016

 

Real estate depreciation and amortization

 

142,895

 

 

140,013

 

 

 

284,742

 

 

279,400

 

Income allocated to non-controlling interests

 

1,893

 

 

1,841

 

 

 

3,763

 

 

3,543

 

Gain on sale of operating properties

 

 

 

(48,919

)

 

 

(43,806

)

 

(48,919

)

Funds from operations

$

187,705

 

$

184,034

 

 

$

371,505

 

$

367,040

 

 

 

 

 

 

 

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

 

(1,587

)

 

981

 

 

 

(64

)

 

939

 

Plus: Severance

 

 

 

 

 

 

506

 

 

 

Plus: Legal costs and settlements, net of recoveries

 

1,114

 

 

 

 

 

1,966

 

 

84

 

Plus: Loss on early retirement of debt

 

 

 

2,513

 

 

 

921

 

 

2,513

 

Plus: Expensed development & other pursuit costs

 

660

 

 

471

 

 

 

660

 

 

471

 

Less: Miscellaneous (income)/expense

 

 

 

(364

)

 

 

 

 

(364

)

Core funds from operations

$

187,892

 

$

187,635

 

 

$

375,494

 

$

370,683

 

 

 

 

 

 

 

Less: recurring capitalized expenditures

 

(29,595

)

 

(21,034

)

 

 

(51,620

)

 

(38,613

)

 

 

 

 

 

 

Core adjusted funds from operations

$

158,297

 

$

166,601

 

 

$

323,874

 

$

332,070

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

EPS diluted

 

108,424

 

 

109,392

 

 

 

108,577

 

 

108,636

 

FFO/Core FFO/ Core AFFO diluted

 

110,018

 

 

110,262

 

 

 

110,171

 

 

110,232

 

 

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 June 30,

 

Six Months Ended June 30,

 

2024

2023

 

2024

2023

Total Earnings Per Common Share - Diluted

$

0.40

 

$

0.84

 

 

$

1.17

 

$

1.22

 

Real estate depreciation and amortization

 

1.29

 

 

1.26

 

 

 

2.57

 

 

2.52

 

Income allocated to non-controlling interests

 

0.02

 

 

0.01

 

 

 

0.03

 

 

0.03

 

Gain on sale of operating property

 

 

 

(0.44

)

 

 

(0.40

)

 

(0.44

)

FFO per common share - Diluted

$

1.71

 

$

1.67

 

 

$

3.37

 

$

3.33

 

 

 

 

 

 

 

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

 

(0.02

)

 

0.01

 

 

 

 

 

0.01

 

Plus: Severance

 

 

 

 

 

 

 

 

 

Plus: Legal costs and settlements, net of recoveries

 

0.01

 

 

 

 

 

0.02

 

 

 

Plus: Loss on early retirement of debt

 

 

 

0.02

 

 

 

0.01

 

 

0.02

 

Plus: Expensed development & other pursuit costs

 

0.01

 

 

 

 

 

0.01

 

 

 

Less: Miscellaneous (income)/expense

 

 

 

 

 

 

 

 

 

Core FFO per common share - Diluted

$

1.71

 

$

1.70

 

 

$

3.41

 

$

3.36

 

 

 

 

 

 

 

Less: recurring capitalized expenditures

 

(0.27

)

 

(0.19

)

 

 

(0.47

)

 

(0.35

)

 

 

 

 

 

 

Core AFFO per common share - Diluted

$

1.44

 

$

1.51

 

 

$

2.94

 

$

3.01

 

 

 

 

 

 

 

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:

 

3Q24

 

Range

 

2024

 

Range

 

Low

High

 

Low

High

Expected earnings per common share - diluted

$

0.31

$

0.35

 

$

1.83

 

$

1.93

 

Expected real estate depreciation and amortization

 

1.30

 

 

1.30

 

 

5.17

 

 

 

5.17

 

Expected income allocated to non-controlling interests

 

0.02

 

 

0.02

 

 

0.07

 

 

 

0.07

 

Expected (gain) on sale of operating properties

 

 

 

 

 

(0.40

)

 

(0.40

)

Expected FFO per share - diluted

$

1.63

 

$

1.67

 

$

6.67

 

 

$

6.77

 

Anticipated Adjustments to FFO

 

0.03

 

 

0.03

 

 

0.07

 

 

 

0.07

 

Expected Core FFO per share - diluted

$

1.66

 

$

1.70

 

$

6.74

 

 

$

6.84

 

 

 

 

 

 

 

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 June 30,

 

Six months ended June 30,

 

2024

2023

 

2024

2023

Net income

$

44,810

 

$

92,940

 

 

$

130,569

 

$

136,559

 

Less: Fee and asset management income

 

(2,606

)

 

(718

)

 

 

(3,890

)

 

(1,296

)

Less: Interest and other income

 

(1,598

)

 

(431

)

 

 

(3,366

)

 

(493

)

Less: Income on deferred compensation plans

 

(1,073

)

 

(2,844

)

 

 

(6,892

)

 

(8,756

)

Plus: Property management expense

 

9,846

 

 

8,751

 

 

 

19,240

 

 

17,048

 

Plus: Fee and asset management expense

 

475

 

 

420

 

 

 

918

 

 

833

 

Plus: General and administrative expense

 

18,154

 

 

15,863

 

 

 

34,847

 

 

31,219

 

Plus: Interest expense

 

32,227

 

 

33,578

 

 

 

64,764

 

 

66,421

 

Plus: Depreciation and amortization expense

 

145,894

 

 

143,054

 

 

 

290,696

 

 

285,498

 

Plus: Expense on deferred compensation plans

 

1,073

 

 

2,844

 

 

 

6,892

 

 

8,756

 

Plus: Loss on early retirement of debt

 

 

 

2,513

 

 

 

921

 

 

2,513

 

Less: Gain on sale of operating property

 

 

 

(48,919

)

 

 

(43,806

)

 

(48,919

)

Plus: Income tax expense

 

1,059

 

 

851

 

 

 

1,964

 

 

2,001

 

NOI

$

248,261

 

$

247,902

 

 

$

492,857

 

$

491,384

 

 

 

 

 

 

 

"Same Property" Communities

$

235,481

 

$

233,450

 

 

$

470,115

 

$

462,828

 

Non-"Same Property" Communities

 

8,935

 

 

7,124

 

 

 

18,078

 

 

13,294

 

Development and Lease-Up Communities

 

449

 

 

(4

)

 

 

451

 

 

(7

)

Disposition/Other

 

3,396

 

 

7,332

 

 

 

4,213

 

 

15,269

 

NOI

$

248,261

 

$

247,902

 

 

$

492,857

 

$

491,384

 

 

 

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 or 2 for 6 month results. A reconciliation of net income to EBITDAre and adjusted EBITDAre is provided below:

 

Three months ended June 30,

 

Six months ended June 30,

 

2024

2023

 

2024

2023

Net income

$

44,810

 

$

92,940

 

 

$

130,569

 

$

136,559

 

Plus: Interest expense

 

32,227

 

 

33,578

 

 

 

64,764

 

 

66,421

 

Plus: Depreciation and amortization expense

 

145,894

 

 

143,054

 

 

 

290,696

 

 

285,498

 

Plus: Income tax expense

 

1,059

 

 

851

 

 

 

1,964

 

 

2,001

 

Less: Gain on sale of operating property

 

 

 

(48,919

)

 

 

(43,806

)

 

(48,919

)

EBITDAre

$

223,990

 

$

221,504

 

 

$

444,187

 

$

441,560

 

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

 

(1,587

)

 

981

 

 

 

(64

)

 

939

 

Plus: Severance

 

 

 

 

 

 

506

 

 

 

Plus: Legal costs and settlements, net of recoveries

 

1,114

 

 

 

 

 

1,966

 

 

84

 

Plus: Loss on early retirement of debt

 

 

 

2,513

 

 

 

921

 

 

2,513

 

Plus: Expensed development & other pursuit costs

 

660

 

 

471

 

 

 

660

 

 

471

 

Less: Miscellaneous (income)/expense

 

 

 

(364

)

 

 

 

 

(364

)

Adjusted EBITDAre

$

224,177

 

$

225,105

 

 

$

448,176

 

$

445,203

 

Annualized Adjusted EBITDAre

$

896,708

 

$

900,420

 

 

$

896,352

 

$

890,406

 

 

 

 

 

 

 

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 June 30,

 

Six months ended June 30,

 

2024

2023

 

2024

2023

Unsecured notes payable

$

3,220,334

 

$

3,364,180

 

 

$

3,232,903

 

$

3,316,971

 

Secured notes payable

 

330,222

 

 

391,732

 

 

 

330,194

 

 

453,409

 

Total debt

 

3,550,556

 

 

3,755,912

 

 

 

3,563,097

 

 

3,770,380

 

Less: Cash and cash equivalents

 

(54,686

)

 

(6,775

)

 

 

(60,347

)

 

(8,650

)

Net debt

$

3,495,870

 

$

3,749,137

 

 

$

3,502,750

 

$

3,761,730

 

 

 

 

 

 

 

 

 

Net Debt to Annualized Adjusted EBITDAre:

 

Three months ended June 30,

 

Six months ended June 30,

 

2024

 

2023

 

 

2024

 

2023

 

Net debt

$

3,495,870

$

3,749,137

 

$

3,502,750

$

3,761,730

Annualized Adjusted EBITDAre

 

896,708

 

 

900,420

 

 

 

896,352

 

 

890,406

 

Net Debt to Annualized Adjusted EBITDAre

3.9x

4.2x

 

3.9x

4.2x

 

Contacts

Kim Callahan, 713-354-2549

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