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| Camden Property Trust Reports Increase in Funds From Operations Per Share |
HOUSTON, May 4 /PRNewswire/ -- Camden Property Trust (NYSE: CPT), announced that its funds from operations (FFO) per share for the first quarter of 1999 totaled $0.77 per share or $37.8 million as compared to $0.69 per share or $23.9 million reported for the same period in 1998. Revenues for the first quarter of 1999 totaled $88.8 million compared to $58.6 million in the first quarter of 1998. For the 28,887 apartment homes included in the first quarter "same-property" results, revenues increased 3.8% while operating expenses increased 1.7%, resulting in a 5.0% increase in same-property net operating income (NOI). Same-property NOI growth was particularly strong in the Louisville, Austin and St. Louis markets with results of 12.4%, 10.2% and 9.4% respectively. The Company's largest same-property markets, Houston and Dallas, also contributed strong performances with NOI growth of 5.7% and 6.2% respectively. "Camden continues to experience solid same-property performance as a result of our on-site management's focus on customer service and the Company's solid middle market properties," said Ric Campo, Chairman and Chief Executive Officer. Physical occupancy levels averaged 93.2% during the quarter as compared to 93.3% during the first quarter of 1998. Average rental revenues per apartment home per month during the first quarter rose to $612, an increase of 10.5% over the same period in 1998. Net income to common shareholders for the quarter totaled $13.7 million or $0.31 per diluted share compared to $9.0 million or $0.27 per diluted share for the first quarter of 1998. During the quarter, the Company completed construction of the second phase of Renaissance Pointe in Orlando. At March 31, the property was 58% occupied, and stabilization is expected to occur during the third quarter of 1999. The lease-up of The Park at Towne Center in Phoenix was recently completed, and leasing continues at the following five properties: The Park at Interlocken in Denver, The Park at Goose Creek in Baytown, The Park at Greenway in Houston, The Park at Holly Springs in Houston and The Park at Midtown in Houston. Leasing activity year-to-date has been strong, with an average of 33 apartment homes leased per month at the seven properties previously mentioned. "Our two urban Houston properties have performed particularly well averaging 51 homes leased per month year-to-date, including an average of 65 homes leased during the month of April," said Keith Oden, President and Chief Operating Officer. "Maintaining our financial flexibility has always been a major focus for us. That flexibility allows us to take advantage of opportunities to enhance shareholder value," said Steve Dawson, Senior Vice President and Chief Financial Officer. "We began repurchasing our common shares in September 1998. To date, we have acquired approximately 3.3 million shares at an average price of $25.27 for a total cost of $84.0 million." The Company currently has $275 million available under its senior unsecured lines of credit following the issuance of $100 million of 8.5% cumulative redeemable perpetual preferred operating units in February and $200 million of 7.0% five-year senior unsecured notes in April 1999. Additionally, during the quarter the Company issued $39.5 million of three, five and ten year senior unsecured notes and sold a 126-home apartment community in Louisville for approximately $4.3 million. Camden Property Trust is a real estate company engaged in the ownership, development, acquisition, marketing, management and disposition of multifamily apartment communities. Camden owns interests in and operates 149 properties containing 51,490 apartment homes in the Sunbelt and Midwestern markets from Florida to California. Upon completion of 11 properties under development, the Company's portfolio will increase to 56,190 apartment homes in 160 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 1-800-9Camden, or locally at 713-354-2500 or visit Camden's web site at http://www.camdenprop.com. FIRST QUARTER 1999 - FINANCIAL HIGHLIGHTS (In thousands, except per share, property data amounts, ratios and note amounts) (Unaudited) Three Months Ended March 31, 1999 1998 % Change Revenues $88,835 $58,592 51.6% Avg. monthly rent per operating unit 612 554 10.5% Net income to common shareholders 13,706 8,961 53.0% Per share - basic 0.32 0.28 14.3% Per share - diluted 0.31 0.27 14.8% Funds from operations 37,808 23,948 57.9% Per share 0.77 0.69 11.6% Per share - as adjusted 0.77 0.71 8.5% (See Note 1 and Note 2) Dividends per share 0.520 0.505 3.0% Interest expense coverage ratio, times 3.9 4.1 Dividend payout ratio 67.5% 73.2% Same property NOI 5.0% (# of units included) 28,887 As of March 31, 1999 1998 Total assets $2,377,816 $1,356,682 Total debt (03/31 actual) $1,013,336 $535,856 Common and common equivalent shares, outstanding end of period 47,826 34,543 Share price, end of period $24.75 $29.63 Perpetual preferred units, end of period $97,936 $0 Book equity value, end of period $1,106,539 $709,958 Market equity value, end of period (A)$1,281,630 $1,023,336 Debt to total market capitalization ratio44.2% 34.4% Debt to assets ratio 42.6% 39.5% Unencumbered real estate assets (at cost) to unsecured debt ratio - Pro forma 264% 304% (A) Includes perpetual preferred operating units. Note 1: 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. Had this Issue been adopted at January 1, 1998, funds from operations per share would have been affected by $(419,000) or $(0.01) per share for the three months ended March 31, 1998. Note 2: 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. Had this accounting policy been adopted at January 1, 1998, funds from operations per share would have been affected by $1.1 million or $0.03 per share for the three months ended March 31, 1998. OPERATING RESULTS (In thousands, except per share and property data amounts) (Unaudited) Three Months Ended March 31, (A) OPERATING DATA (B) 1999 1998 Rental income $82,134 $54,835 Other property income 5,159 3,216 Total property income 87,293 58,051 Equity in income of joint ventures 516 292 Fee and asset management 950 112 Other income 76 137 Total revenues 88,835 58,592 Property operating and maintenance 25,576 19,318 Real estate taxes 9,201 6,289 General and administrative 2,423 1,451 Interest 13,474 7,754 Depreciation and amortization 21,352 14,488 Total expenses 72,026 49,300 Income before gain on sale of property and minority interests 16,809 9,292 Gain on sale of property 720 --- Income before minority interests 17,529 9,292 Preferred unit distributions (862) --- Minority interests (618) (331) Net income 16,049 8,961 Preferred share dividends (2,343) --- Net income to common shareholders $13,706 $8,961 FUNDS FROM OPERATIONS Net income to common shareholders $13,706 $8,961 Real estate depreciation 20,964 14,200 Real estate depreciation from unconsolidated joint ventures 825 336 Gain on sale of property (720) --- Preferred share dividends 2,343 --- Minority interests 618 331 Interest on convertible subordinated debentures 66 109 Amortization of deferred costs on convertible debentures 6 11 Funds from operations $37,808 $23,948 PER SHARE DATA Net income - basic $0.32 $0.28 Net income - diluted 0.31 0.27 Funds from operations 0.77 0.69 Funds from operations - as adjusted 0.77 0.71 Cash distributions 0.520 0.505 Weighted average number of common and common equivalent shares outstanding: Basic 42,842 31,572 Diluted 45,874 34,267 FFO 49,230 34,515 PROPERTY DATA (C) Total operating properties (end of period) 149 100 Total operating units in operating properties (end of period) 51,490 34,669 Total operating units (weighted average)51,445 34,273 (A) See Note 1 and Note 2 of Financial Highlights. (B) Certain reclassifications have been made to the Company's historical operating data. (C) Includes joint venture investments.SOURCE Camden Property Trust
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CONTACT:
Richard J. Campo or D. Keith Oden both of
Camden Property Trust, 800-9Camden, or local, 713-354-2500
