Camden Property Trust Announces 2023 Operating Results, 2024 Financial Outlook, and First Quarter 2024 Dividend
|
Three Months Ended |
Twelve Months Ended |
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Per Diluted Share |
2023 |
2022 |
2023 |
2022 |
EPS |
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FFO |
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Core FFO |
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Core AFFO |
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Three Months Ended |
4Q23 Guidance |
4Q23 Guidance |
Per Diluted Share |
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Midpoint |
Variance |
EPS |
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FFO |
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Core FFO |
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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
Operating Statistics - Same Property Portfolio
New Lease and Renewal Data - Date Signed (1) |
|
|
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) |
|
|
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 (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 |
|
|
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 |
Development Activity
During the quarter, construction was completed at Camden NoDa in
Development Communities - Construction Completed and Project in Lease-Up ($ in millions)
|
|
Total |
Total |
% Leased |
Community |
Location |
Homes |
Cost |
as of |
|
|
387 |
|
89% |
Development Communities - Construction Ongoing ($ in millions)
|
|
Total |
Total |
% Leased |
Community |
Location |
Homes |
Estimated Cost |
as of |
|
|
420 |
|
17% |
|
|
189 |
75.0 |
15% |
|
|
369 |
138.0 |
|
|
|
188 |
80.0 |
|
Total |
|
1,166 |
|
|
Disposition Activity
During the quarter, the Company disposed of a 714-apartment home community in
Capital Markets Transactions
During the quarter, the Company issued
Subsequent to quarter-end, the Company issued
Liquidity Analysis
As of
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 |
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FFO |
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Core FFO(1) |
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(1) The Company's 2024 core FFO guidance includes approximately |
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2024 |
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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
Conference Call
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
About Camden
CAMDEN |
OPERATING RESULTS |
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(In thousands, except per share amounts) |
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(Unaudited) |
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|
Three Months Ended |
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Twelve Months Ended |
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|
2023 |
2022 |
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2023 |
2022 |
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OPERATING DATA |
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Property revenues (a) |
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Property expenses |
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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 |
|
|
|
|
|
|
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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 |
) |
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Other expenses |
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|
|
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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 |
|
|
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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 |
|
|
|
|
|
|
|
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|
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
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Net income |
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|
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Other comprehensive income |
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|
|
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|
|||||
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 |
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PER SHARE DATA |
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Total earnings per common share - basic |
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Total earnings per common share - diluted |
2.03 |
|
0.42 |
|
|
3.70 |
|
6.04 |
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|
|
|
|
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|
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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 |
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|
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 |
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(In thousands, except per share and property data amounts) |
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(Unaudited) |
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|
Three Months Ended |
|
Twelve Months Ended |
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|
2023 |
2022 |
|
2023 |
2022 |
||||
FUNDS FROM OPERATIONS |
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|
||||
|
|
|
|
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|
||||
Net income attributable to common shareholders |
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
||||
Less: recurring capitalized expenditures (b) |
(31,927 |
) |
(29,033 |
) |
|
(97,094 |
) |
(90,715 |
) |
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Core adjusted funds from operations |
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PER SHARE DATA |
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Funds from operations - diluted |
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|
|
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|
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 |
|
|
|
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|
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Weighted average number of common shares outstanding: |
|
|
|
|
|
||||
FFO/Core FFO/Core AFFO - diluted |
110,312 |
|
110,117 |
|
|
110,269 |
|
109,261 |
|
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|
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|
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PROPERTY DATA |
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|
|
||||
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 |
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(In thousands) |
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(Unaudited) |
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ASSETS |
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|
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Real estate assets, at cost |
|
|
|
|
|
|||||
Land |
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
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LIABILITIES AND EQUITY |
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Liabilities |
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|
|||||
Notes payable |
|
|
|
|
|
|||||
Unsecured |
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
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|
|||||
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 |
) |
|
(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 |
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(a) Includes net deferred charges of: |
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(b) Includes deferred revenues of: |
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(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
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 |
|
Twelve Months Ended |
||||||
|
2023 |
2022 |
|
2023 |
2022 |
||||
Net income attributable to common shareholders |
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: recurring capitalized expenditures |
(31,927 |
) |
(29,033 |
) |
|
(97,094 |
) |
(90,715 |
) |
|
|
|
|
|
|
||||
Core adjusted funds from operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
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 |
|
Twelve Months Ended |
||||||
|
2023 |
2022 |
|
2023 |
2022 |
||||
Total Earnings Per Common Share - Diluted |
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: recurring capitalized expenditures |
(0.29 |
) |
(0.26 |
) |
|
(0.88 |
) |
(0.83 |
) |
|
|
|
|
|
|
||||
Core AFFO per common share - Diluted |
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
Anticipated Adjustments to FFO |
0.03 |
|
0.03 |
|
|
0.05 |
|
0.05 |
|
Expected Core FFO per share - diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
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 |
|
Twelve months ended |
||||||
|
2023 |
2022 |
|
2023 |
2022 |
||||
Net income |
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
"Same Property" Communities |
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
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 |
|
Twelve months ended |
||||||
|
2023 |
2022 |
|
2023 |
2022 |
||||
Net income |
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
Annualized Adjusted EBITDAre |
|
|
|
|
|
|
|
|
|
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 |
|
Twelve months ended |
||||||
|
|
|
2023 |
2022 |
|
2023 |
2022 |
||||
Unsecured notes payable |
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
Net Debt to Annualized Adjusted EBITDAre:
|
|
|
Three months ended |
|
Twelve months ended |
||
|
|
|
2023 |
2022 |
|
2023 |
2022 |
Net debt |
|
|
|
|
|
|
|
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 |
|||
(Unaudited) |
|||
|
|
|
|
Earnings Guidance - Per Diluted Share |
|
|
|
Expected FFO per share - diluted |
|
|
|
Expected CORE FFO per share - diluted |
|
|
|
|
|
|
|
"Same Property" Communities |
|
|
|
Number of Units - 2024 |
|
|
55,866 |
2023 Base Net Operating Income |
|
|
|
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 |
|
|
|
Bad Debt Midpoint |
|
|
1.1% |
|
|
|
|
Capitalized Expenditures |
|
|
|
Recurring |
|
|
|
Revenue Enhancing Capex and Repositions (a) |
|
|
|
Non - Recurring Capital Expenditures |
|
|
|
|
|
|
|
Acquisitions/Dispositions |
|
|
|
Acquisition Volume (consolidated on balance sheet) |
|
|
|
Disposition Volume (consolidated on balance sheet) |
|
|
|
|
|
|
|
Development |
|
|
|
Development Starts (consolidated on balance sheet) |
|
|
|
Development Spend (consolidated on balance sheet) |
|
|
|
|
|
|
|
Non-Property Income |
|
|
|
Non-Property Income |
|
|
|
Includes: Fee and asset management income and interest and other income |
|
|
|
|
|
|
|
CORE Corporate Expenses |
|
|
|
General and Administrative Expenses |
|
|
|
Property Management Expense |
|
|
|
Fee and Asset Management Expense |
|
|
|
Corporate G&A Depreciation/Amortization |
|
|
|
Income Tax Expense |
|
|
|
Non-CORE Corporate Expenses / Insurance Adjustments |
|
|
|
|
|
|
|
Capital |
|
|
|
Expensed Interest |
|
|
|
Capitalized Interest |
|
|
|
(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/
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