Camden Property Trust Announces 2012 Operating Results, 12.5% Dividend Increase and 2013 Financial O

Before you go, we thought you'd like these...
Before you go close icon

Camden Property Trust Announces 2012 Operating Results, 12.5% Dividend Increase and 2013 Financial Outlook

HOUSTON--(BUSINESS WIRE)-- Camden Property Trust (NYS: CPT) today announced operating results for the three and twelve months ended December 31, 2012.


Funds from Operations ("FFO")

FFO for the fourth quarter of 2012 totaled $0.97 per diluted share or $85.9 million, as compared to $0.84 per diluted share or $64.3 million for the same period in 2011. FFO for the twelve months ended December 31, 2012 totaled $3.62 per diluted share or $313.3 million, as compared to $2.73 per diluted share or $207.5 million for the same period in 2011.

FFO for the twelve months ended December 31, 2012 included a $2.1 million or $0.02 per diluted share charge related to the redemption of perpetual preferred operating partnership units. FFO for the twelve months ended December 31, 2011 included: a $0.40 per diluted share charge related to a $29.8 million loss on discontinuation of a hedging relationship of an interest rate swap and $0.5 million write-off of unamortized loan costs related to the payoff of a term loan; a $4.7 million or $0.06 per diluted share gain on sale of undeveloped land; and a net $3.3 million or $0.04 per diluted share gain on sale of an available-for-sale investment.

Net Income Attributable to Common Shareholders ("EPS")

The Company reported EPS of $142.2 million or $1.60 per diluted share for the fourth quarter of 2012, as compared to $46.8 million or $0.62 per diluted share for the same period in 2011. EPS for the three months ended December 31, 2012 included: a $17.2 million or $0.20 per diluted share gain on acquisition of controlling interests in joint ventures; an $82.5 million or $0.94 per diluted share gain on sale of discontinued operations; and a $14.5 million or $0.17 per diluted share gain on sale of unconsolidated joint venture properties. EPS for the three months ended December 31, 2011 included a $24.6 million or $0.33 per diluted share gain on sale of discontinued operations, and a $6.4 million or $0.09 per diluted share gain on sale of unconsolidated joint venture properties.

For the twelve months ended December 31, 2012, Camden reported net income attributable to common shareholders of $283.4 million or $3.30 per diluted share, as compared to $49.4 million or $0.66 per diluted share for the same period in 2011. EPS for the twelve months ended December 31, 2012 included: a $57.4 million or $0.67 per diluted share gain on acquisition of controlling interests in joint ventures; a $115.1 million or $1.34 per diluted share gain on sale of discontinued operations; a $17.4 million or $0.20 per diluted share gain on sale of unconsolidated joint venture properties; and a $2.1 million or $0.02 per diluted share charge related to the redemption of perpetual preferred operating partnership units. EPS for the twelve months ended December 31, 2011 included: a $24.6 million or $0.34 per diluted share gain on sale of discontinued operations; a $6.4 million or $0.09 per diluted share gain on sale of unconsolidated joint venture properties; a $0.41 per diluted share charge related to a $29.8 million loss on discontinuation of a hedging relationship of an interest rate swap and $0.5 million write-off of unamortized loan costs related to the payoff of a term loan; a $4.7 million or $0.06 per diluted share gain on sale of undeveloped land; a net $3.3 million or $0.05 per diluted share gain on sale of an available-for-sale investment; and a $1.1 million or $0.02 per diluted share gain on sale of unconsolidated joint venture interests.

A reconciliation of net income attributable to common shareholders to FFO is included in the financial tables accompanying this press release.

Same-Property Results

For the 44,774 apartment homes included in consolidated same-property results, fourth quarter 2012 same-property net operating income ("NOI") increased 8.0% compared to the fourth quarter of 2011, with revenues increasing 6.6% and expenses increasing 4.1%. On a sequential basis, fourth quarter 2012 same-property NOI increased 1.7% compared to the third quarter of 2012, with revenues up slightly and expenses declining 2.8% compared to the prior quarter. On a full-year basis, 2012 same-property NOI increased 9.2%, with revenues increasing 6.5% and expenses increasing 2.2% compared to the same period in 2011. Same-property physical occupancy levels for the combined portfolio averaged 95.1% during the fourth quarter of 2012, compared to 94.6% in the fourth quarter of 2011 and 95.6% in the third quarter of 2012.

The Company defines same-property communities as communities owned and stabilized as of January 1, 2011, excluding properties held for sale and communities under major redevelopment. A reconciliation of net income to net operating income and same-property net operating income is included in the financial tables accompanying this press release.

Acquisition Activity

During the fourth quarter, Camden acquired three communities with 839 apartment homes for a total of $145.0 million: Camden Montierra, a 249-home apartment community in Scottsdale, AZ; Camden San Marcos, a 320-home apartment community in Scottsdale, AZ; and Camden Belleview Station, a 270-home apartment community in Denver, CO. The Company also purchased the remaining 50% ownership interest in an unconsolidated joint venture for approximately $15.9 million and assumed approximately $26.2 million in mortgage debt. The Company now owns 100% of Camden Denver West, a 320-home apartment community located in Denver, CO.

In addition, Camden acquired 2.4 acres of land in Plantation, FL and 3.5 acres of land in Charlotte, NC during the fourth quarter for future development of two multifamily communities.

Disposition Activity

The Company disposed of eight wholly-owned communities with 2,180 apartment homes during the quarter for a total of $177.6 million. The eight communities had an average age of 19 years and were located in Houston, Austin, Dallas, Atlanta, Charlotte and Philadelphia. Camden also sold six joint venture communities with 2,153 apartment homes during the quarter for a total of $178.5 million. The six joint venture communities had an average age of 25 years and were located in Atlanta, St. Louis and Kansas City, MO.

Subsequent to quarter-end, the Company disposed of an additional wholly-owned community. Camden Live Oaks, a 770-home apartment community in Tampa, FL with an age of 23 years was sold for approximately $63.4 million.

Development Activity

Lease-up was completed during the quarter at Camden Westchase Park, a 348-home project in Tampa, FL which is currently 97% occupied. Leasing continued at Camden Royal Oaks II, a 104-home project in Houston, TX, which is currently 81% leased; and Camden Town Square, a 438-home project in Orlando, FL which completed construction during the quarter and is currently 72% leased.

Construction began during the quarter at three communities: Camden Glendale, in Glendale, CA, a $115 million project with 303 apartment homes; Camden Boca Raton in Boca Raton, FL, a $54 million project with 261 apartment homes; and Camden Paces in Atlanta, GA, a $110 million project with 379 apartment homes.

Construction continued at four additional wholly-owned development communities: Camden City Centre II in Houston, TX, a $36 million project with 268 apartment homes; Camden NOMA in Washington, DC, a $110 million project with 320 apartment homes; Camden Lamar Heights in Austin, TX, a $47 million project with 314 apartment homes; and Camden Flatirons in Denver, CO, a $78 million project with 424 apartment homes.

Lease-up was completed during the quarter at one joint venture community, Camden Amber Oaks II in Austin, TX, a 244-home project which is currently 95% occupied. Construction continued at Camden South Capitol in Washington, DC, an $88 million joint venture project with 276 apartment homes, and construction began at Camden Waterford Lakes in Orlando, FL, a $40 million joint venture project with 300 apartment homes.

Quarterly Dividend Declaration

Camden's Board of Trust Managers declared a first quarter 2013 dividend of $0.63 per common share, which is a 12.5% increase over the Company's prior quarterly dividend of $0.56 per share. The dividend is payable on April 17, 2013 to holders of record as of March 28, 2013. In declaring the dividend, the Board of Trust Managers considered a number of factors, including the Company's past performance and future prospects, as described in this release.

Earnings Guidance

Camden provided initial earnings guidance for 2013 based on its current and expected views of the apartment market and general economic conditions. Full-year 2013 FFO is expected to be $3.85 to $4.05 per diluted share, and full-year 2013 EPS is expected to be $1.38 to $1.58 per diluted share. First quarter 2013 earnings guidance is $0.92 to $0.96 per diluted share for FFO and $0.28 to $0.32 per diluted share for EPS. Guidance for EPS excludes gains on real estate transactions. Camden intends to update its earnings guidance to the market on a quarterly basis.

The Company's initial 2013 earnings guidance is based on projections of same-property revenue growth between 4.75% and 6.25%, expense growth between 3.2% and 4.0%, and NOI growth between 5.5% and 7.5%. Additional information on the Company's 2013 financial outlook and a reconciliation of expected net income attributable to common shareholders to expected FFO are included in the financial tables accompanying this press release.

Conference Call

The Company will hold a conference call on Friday, February 1, 2013 at 11:00 a.m. Central Time to review its fourth quarter and full-year 2012 results and discuss its outlook for future performance. To participate in the call, please dial (888) 317-6003 (Domestic) or (412) 317-6061 (International) by 10:50 a.m. Central Time and enter passcode: 6680150, or join the live webcast of the conference call by accessing the Investor Relations section of the Company's website at camdenliving.com. Supplemental financial information is available in the Investor Relations section of the Company's website under Earnings Releases or by calling Camden's Investor Relations Department at (800) 922-6336.

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements under the federal securities law. These statements are based on current expectations, estimates and projections about the industry and markets in which Camden operates, management's beliefs, and assumptions made by management. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties which are difficult to predict. 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, and the Company assumes no obligation to update or supplement these statements because of subsequent events.

About Camden

Camden Property Trust, an S&P 400 Company, is a real estate company engaged in the ownership, development, acquisition, management and disposition of multifamily apartment communities. Camden owns interests in and operates 192 properties containing 65,005 apartment homes across the United States. Upon completion of nine properties under development, the Company's portfolio will increase to 67,850 apartment homes in 201 properties. Camden was recently named by FORTUNE® Magazine for the sixth consecutive year as one of the "100 Best Companies to Work For" in America, ranking #10.

For additional information, please contact Camden's Investor Relations Department at (800) 922-6336 or (713) 354-2787 or access our website at camdenliving.com.

 
CAMDEN OPERATING RESULTS
(In thousands, except per share and property data amounts)
   
(Unaudited)Three Months Ended Twelve Months Ended
December 31,December 31,

OPERATING DATA

2012 20112012 2011
Property revenues  
Rental revenues$165,464$137,113$626,127$533,937
Other property revenues25,968 21,775101,781 87,137
Total property revenues191,432 158,888727,908 621,074
 
Property expenses
Property operating and maintenance50,22642,722196,811175,000
Real estate taxes18,621 15,80972,858 65,128
Total property expenses68,847 58,531269,669 240,128
 
Non-property income
Fee and asset management2,7733,01812,3459,973
Interest and other income (loss)40(100)(710)4,649
Income on deferred compensation plans952 5,5404,772 6,773
Total non-property income3,765 8,45816,407 21,395
 
Other expenses
Property management6,1525,20821,79620,686
Fee and asset management1,5801,7156,6315,935
General and administrative9,8169,06437,52835,456
Interest25,48726,942104,282112,414
Depreciation and amortization52,50142,428203,077171,127
Amortization of deferred financing costs8871,1163,6085,877
Expense on deferred compensation plans952 5,5404,772 6,773
Total other expenses97,375 92,013381,694 358,268
 
 
Gain on acquisition of controlling interests in joint ventures17,227-57,418-
Gain on sale of properties, including land---4,748
Gain on sale of unconsolidated joint venture interests---1,136
Loss on discontinuation of hedging relationship---(29,791)
Equity in income of joint ventures15,489 5,84520,175 5,679
Income from continuing operations before income taxes61,69122,647170,54525,845
Income tax expense - current(216) (331)(1,208) (2,220)
Income from continuing operations61,47522,316169,33723,625
Income from discontinued operations2,1443,1279,49511,715
Gain on sale of discontinued operations, net of tax82,527 24,621115,068 24,621
Net income146,14650,064293,90059,961
Less income allocated to noncontrolling interests from continuing operations(1,893)(1,431)(4,821)(3,453)
Less income, including gain on sale, allocated to noncontrolling interests from discontinued operations(2,087)(33)(2,838)(129)
Less income allocated to perpetual preferred units-(1,750)(776)(7,000)
Less write off of original issuance costs of redeemed perpetual preferred units- -(2,075) -
Net income attributable to common shareholders$142,166 $46,850$283,390 $49,379
 
 

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Net income$146,146$50,064$293,900$59,961
Other comprehensive income
Unrealized loss on cash flow hedging activities---(2,692)
Reclassification of net (gain) loss on cash flow hedging activities-(3)-39,657
Reclassification of (gain) loss on available-for-sale investment to earnings, net of tax-3-(3,306)
Reclassification of prior service cost and net loss on post retirement obligation7-30-
Unrealized loss and unamortized prior service cost on postretirement obligation(409) (884)(409) (884)
Comprehensive income145,74449,180293,52192,736
Less income allocated to noncontrolling interests from continuing operations(1,893)(1,431)(4,821)(3,453)
Less income, including gain on sale, allocated to noncontrolling interests from discontinued operations(2,087)(33)(2,838)(129)
Less income allocated to perpetual preferred units-(1,750)(776)(7,000)
Less write off of original issuance costs of redeemed perpetual preferred units- -(2,075) -
Comprehensive income attributable to common shareholders$141,764 $45,966$283,011 $82,154
 
 

PER SHARE DATA

Net income attributable to common shareholders - basic$1.63$0.63$3.35$0.67
Net income attributable to common shareholders - diluted1.600.623.300.66
Income from continuing operations attributable to common shareholders - basic0.670.251.900.17
Income from continuing operations attributable to common shareholders - diluted0.660.251.880.17
 

Weighted average number of common and common equivalent shares outstanding:

Basic86,29873,51083,77272,756
Diluted88,02074,42885,55673,462
 
 
 
Note: Please refer to the following pages for definitions and reconciliations of all non-GAAP financial measures presented in this document.
 
Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners

Gift Finder Promo
More to Explore
Mon, Dec 05
Set Your Location
City, State, or Zip
 
CAMDEN FUNDS FROM OPERATIONS
(In thousands, except per share and property data amounts)
 
   
 
(Unaudited)Three Months EndedTwelve Months Ended
December 31,December 31,

FUNDS FROM OPERATIONS

2012 20112012 2011
 
Net income attributable to common shareholders(a)$142,166$46,850$283,390$49,379
Real estate depreciation from continuing operations51,39941,219198,642166,149
Real estate depreciation and amortization from discontinued operations9482,6266,79511,038
Adjustments for unconsolidated joint ventures1,7413,4927,93910,534
Income allocated to noncontrolling interests3,9711,0926,4752,586
(Gain) on sale of unconsolidated joint venture properties(14,543)(6,394)(17,418)(7,530)
(Gain) on acquisition of controlling interests in joint ventures(17,227)-(57,418)-
(Gain) on sale of discontinued operations, net of tax(82,527) (24,621)(115,068) (24,621)
Funds from operations - diluted$85,928

 

$64,264$313,337 $207,535
 

PER SHARE DATA

Funds from operations - diluted$0.97$0.84$3.62$2.73
Cash distributions0.560.492.241.96
 

Weighted average number of common and common equivalent shares outstanding:

FFO - diluted88,99176,64986,61975,928