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| Camden Property Trust Announces Increase in Funds from Operations Per Share |
HOUSTON, Jan. 26 /PRNewswire/ -- Camden Property Trust (NYSE: CPT) announced that its funds from operations (FFO) per share for the fourth quarter of 1998 totaled $0.76 per share or $38.6 million as compared to $0.68 per share or $23.6 million reported for the same period in 1997. For the twelve months ended December 31, 1998, Camden's FFO totaled $2.95 per share or $138.0 million, $62.2 million over the $2.62 per share or $75.8 million reported for the same period in 1997. Same property net operating income for 1998 increased 8.2% over the prior year, with revenues increasing 5.1% and operating expenses increasing 0.6%. Revenues for the fourth quarter of 1998 totaled $87.1 million compared to $59.3 million in the fourth quarter of 1997. For the twelve months ended December 31, 1998, revenues totaled $323.8 million compared to $199.8 million in 1997. Occupancy levels averaged 93.5% during the fourth quarter of 1998 as compared to 93.9% during the fourth quarter of 1997. Occupancy for the full year in 1998 and 1997 averaged 93.4% and 93.9% respectively. Average rental revenues per apartment per month during the quarter rose to $607, an increase of 11.2% over the same period in 1997. Net income to common shareholders for the quarter totaled $14.8 million or $0.32 per diluted share compared to $19.7 million or $0.59 per diluted share for the fourth quarter of 1997. For the twelve months, net income to common shareholders totaled $1.12 per diluted share or $48.0 million, compared to $1.41 per diluted share or $38.4 million in 1997. "We successfully completed all of our major objectives for the year. We managed our balance sheet well and again produced double-digit earnings growth. Since 1994, our FFO per share has increased 46.8%, an average annual growth rate of 10.1%. Camden is well positioned to continue that growth with a diversified portfolio in sixteen markets and an active yet manageable development pipeline," said Ric Campo, Chairman and CEO. Construction was completed on The Park at Towne Center in Phoenix during the fourth quarter, and stabilization is expected to occur during the second quarter of 1999. Lease-ups are currently underway at six properties including: Renaissance Pointe II in Orlando, The Park at Interlocken in Denver, The Park at Greenway in Houston, The Park at Goose Creek in Baytown, The Park at Midtown in Houston and The Park at Holly Springs in Houston. The Company's development pipeline, including the six properties in lease-up, now contains 5,658 apartment homes. During the fourth quarter, the Company added The Park at Caley in Denver to the pipeline. This property will contain 218 apartment homes and is estimated to cost $18.3 million. Construction began in December. Camden Property Trust is one of the nation's largest multifamily REITs and owns interests in and operates 149 properties containing 51,310 apartment homes in the Sunbelt and Midwestern markets from Florida to California. Upon completion of 14 properties under development, the Company's portfolio will increase to 56,968 apartment homes in 163 properties. 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 credit risks and uncertainties which are difficult to predict. For more information, please contact Richard J. Campo or D. Keith Oden at 800-9Camden, or locally at 713-354-2500, or visit the Company's website at http://www.camdenprop.com. OPERATING RESULTS (In thousands, except per share and property data amounts) (Unaudited) Three Months Ended Twelve Months Ended December 31, (A) December 31, (A) OPERATING DATA (B) 1998 1997 1998 1997 Rental income $81,031 $55,512 $300,632 $187,928 Other property income 4,554 3,045 18,093 9,446 Total property income 85,585 58,557 318,725 197,374 Equity in income of joint ventures 273 337 1,312 1,141 Fee and asset management 693 261 1,552 743 Other income 560 151 2,250 531 Total revenues 87,111 59,306 323,839 199,789 Property operating and maintenance 24,382 21,100 97,137 70,679 Real estate taxes 8,347 5,592 31,469 21,028 General and administrative 2,466 1,336 7,998 4,389 Interest 13,787 7,795 50,467 28,537 Depreciation and amortization 20,725 13,411 78,113 44,836 Total expenses 69,707 49,234 265,184 169,469 Income before gain on sales of properties, losses related to early retirement of debt and minority interests 17,404 10,072 58,655 30,320 Gain on sales of properties --- 10,170 --- 10,170 Losses related to early retirement of debt --- (111) --- (397) Income before minority interests 17,404 20,131 58,655 40,093 Minority interests (279) (446) (1,322) (1,655) Net income 17,125 19,685 57,333 38,438 Preferred share dividends (2,342) --- (9,371) --- Net income to common shareholders $14,783 $19,685 $47,962 $38,438 FUNDS FROM OPERATIONS Net income to common shareholders $14,783 $19,685 $47,962 $38,438 Real estate depreciation 20,376 13,125 76,740 43,769 Real estate depreciation from unconsolidated joint ventures 755 310 2,253 906 Gain on sales of properties --- (10,170) --- (10,170) Losses related to early retirement of debt --- 111 --- 397 Preferred share dividends 2,342 --- 9,371 --- Minority interests 279 446 1,322 1,655 Interest on convertible subordinated debentures 68 111 317 670 Amortization of deferred costs on convertible debentures 7 11 31 88 Funds from operations $38,610 $23,629 $137,996 $75,753 PER SHARE DATA Net income - basic $0.33 $0.62 $1.16 $1.46 Net income - diluted 0.32 0.59 1.12 1.41 Funds from operations 0.76 0.68 2.95 2.62 Funds from operations - as adjusted 0.76 0.71 2.96 2.71 Cash distributions 0.505 0.490 2.020 1.960 Weighted average number of common and common equivalent shares outstanding: Basic 44,316 31,511 41,174 26,257 Diluted 47,351 34,517 44,183 28,356 FFO 50,713 34,517 46,779 28,882 PROPERTY DATA (C) Total operating properties (end of period) 149 100 149 100 Total operating units in operating properties (end of period) 51,310 34,669 51,310 34,669 Total operating units (weighted average) 51,215 35,141 46,476 30,172 (A) See Note a and Note b on chart 2. (B) Certain reclassifications have been made to the Company's historical operating data. (C) Includes joint venture investments. FOURTH QUARTER 1998 - FINANCIAL HIGHLIGHTS (In thousands, except per share, property date amounts, ratios and note amounts) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 1998 1997(D) % Change 1998 1997(A) %Change Revenues $87,111 $59,306 46.9% $323,839 $199,789 62.1% Avg. monthly rent per operating unit 607 546 11.2% 591 535 10.5% Net income to common shareholders 14,783 19,685 (24.9%) 47,962 38,438 24.8% Per share - basic 0.33 0.62 (46.8%) 1.16 1.46 (20.5%) Per share - diluted 0.32 0.59 (45.8%) 1.12 1.41 (20.6%) Funds from operations 38,610 23,629 63.4% 137,996 75,753 82.2% Per share 0.76 0.68 11.8% 2.95 2.62 12.6% Per share - as adjusted 0.76 0.71 7.0% 2.96 2.71 9.2% (See Note B and Note C) Dividends per share 0.505 0.490 3.1% 2.020 1.960 3.1% Interest expense coverage ratio 3.8 4.0 --- 3.8 3.6 --- Dividend payout ratio 66.4% 72.1% --- 68.5% 74.8% --- Same property NOI 9.2% --- --- 8.2% --- --- (# of units included) 26,452 --- --- 26,452 --- --- As of December 31, 1998 1997 Total assets $2,347,982 $1,323,620 Total debt $1,002,568 $480,754 Common and common equivalent shares outstanding, end of period 50,077 34,546 Share price, end of period $26.00 $31.00 Book equity value, end of period $1,170,388 $710,564 Market equity value, end of period $1,302,002 $1,070,926 Debt to total market capitalization ratio 43.5% 31.0% Debt to assets ratio 42.7% 36.3% Unencumbered real estate assets (at cost) to unsecured debt ratio 284% 344% (A) Includes a $10,170 or $0.32 basic earnings per share impact and $0.29 diluted earnings per share impact related to gain on sales of properties. Note B: Effective March 20, 1998, the Company adopted Issue No. 97-11, Accounting for Internal Costs Relating to Real Estate Property Acquisitions, by the Emerging Issues Task Force, which requires that internal costs of identifying and acquiring operating properties be expensed instead of capitalized. The impact on the Company's funds from operations per share for the three months ended December 31, 1998 due to the adoption of Issue No. 97-11 amounted to $(612,000) or $(0.01) per share. Had this Issue been adopted at January 1, 1997, funds from operations per share would have been affected by $(452,000) or $(0.01) per share and $(1.5 million) or $(0.05) per share for the three and twelve months ended December 31, 1997, respectively, and $(419,000) or $(0.01) per share for the twelve months ended December 31, 1998. Note C: Effective April 1, 1998, the Company implemented prospectively a new accounting policy whereby expenditures for carpet, appliances and HVAC unit replacements are expensed in the first five years of a property's life and capitalized thereafter. The impact on the Company's funds from operations per share for three months ended December 31, 1998 due to the adoption of the new accounting policy amounted to $1.5 million or $0.03 per share. Had this accounting policy been adopted at January 1, 1997, funds from operations per share would have been affected by $1.3 million or $0.04 per share and $4.1 million or $0.14 per share for the three and twelve months ended December 31, 1997, respectively, and $1.1 million or $0.02 per share for the twelve months ended December 31, 1998.SOURCE Camden Property Trust
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CONTACT:
Richard J. Campo, or D. Keith Oden,
800-9Camden, or 713-354-2500, both of Camden Property Trust
