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

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

2011

2012

2011

Property revenues

Rental revenues

$165,464

$137,113

$626,127

$533,937

Other property revenues

25,968

21,775

101,781

87,137

Total property revenues

191,432

158,888

727,908

621,074

Property expenses

Property operating and maintenance

50,226

42,722

196,811

175,000

Real estate taxes

18,621

15,809

72,858

65,128

Total property expenses

68,847

58,531

269,669

240,128

Non-property income

Fee and asset management

2,773

3,018

12,345

9,973

Interest and other income (loss)

40

(100)

(710)

4,649

Income on deferred compensation plans

952

5,540

4,772

6,773

Total non-property income

3,765

8,458

16,407

21,395

Other expenses

Property management

6,152

5,208

21,796

20,686

Fee and asset management

1,580

1,715

6,631

5,935

General and administrative

9,816

9,064

37,528

35,456

Interest

25,487

26,942

104,282

112,414

Depreciation and amortization

52,501

42,428

203,077

171,127

Amortization of deferred financing costs

887

1,116

3,608

5,877

Expense on deferred compensation plans

952

5,540

4,772

6,773

Total other expenses

97,375

92,013

381,694

358,268

Gain on acquisition of controlling interests in joint ventures

17,227

-

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 ventures

15,489

5,845

20,175

5,679

Income from continuing operations before income taxes

61,691

22,647

170,545

25,845

Income tax expense - current

(216)

(331)

(1,208)

(2,220)

Income from continuing operations

61,475

22,316

169,337

23,625

Income from discontinued operations

2,144

3,127

9,495

11,715

Gain on sale of discontinued operations, net of tax

82,527

24,621

115,068

24,621

Net income

146,146

50,064

293,900

59,961

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 obligation

7

-

30

-

Unrealized loss and unamortized prior service cost on postretirement obligation

(409)

(884)

(409)

(884)

Comprehensive income

145,744

49,180

293,521

92,736

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 - diluted

1.60

0.62

3.30

0.66

Income from continuing operations attributable to common shareholders - basic

0.67

0.25

1.90

0.17

Income from continuing operations attributable to common shareholders - diluted

0.66

0.25

1.88

0.17

Weighted average number of common and common equivalent shares outstanding:

Basic

86,298

73,510

83,772

72,756

Diluted

88,020

74,428

85,556

73,462

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

Twelve Months Ended

December 31,

December 31,

FUNDS FROM OPERATIONS

2012

2011

2012

2011

Net income attributable to common shareholders(a)

$142,166

$46,850

$283,390

$49,379

Real estate depreciation from continuing operations

51,399

41,219

198,642

166,149

Real estate depreciation and amortization from discontinued operations

948

2,626

6,795

11,038

Adjustments for unconsolidated joint ventures

1,741

3,492

7,939

10,534

Income allocated to noncontrolling interests

3,971

1,092

6,475

2,586

(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 distributions

0.56

0.49

2.24

1.96

Weighted average number of common and common equivalent shares outstanding:

FFO - diluted

88,991

76,649

86,619

75,928