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| Camden Property Trust Announces Increase in Funds from Operations Per Share |
HOUSTON, July 28 /PRNewswire/ -- Camden Property Trust (NYSE: CPT) announced that its funds from operations (FFO) per share for the second quarter of 1998 totaled $0.74 per share or $37.5 million as compared to $0.65 per share or $19.3 million reported for the same period in 1997. For the six months ended June 30, 1998, Camden's FFO totaled $1.44 per share or $61.4 million, or $31.3 million over the $1.27 per share or $30.1 million reported for the same period in 1997. Same property net operating income for the second quarter increased 7.0% over the second quarter of 1997, with revenues increasing 5.3% and operating expenses increasing 2.9%. For the six months ended June 30, 1998, same property net operating income increased 8.1% over the same period in 1997, with revenues increasing 5.9%, and operating expenses increasing 2.6%. The Company's operating results for the second quarter of 1998 reflect two recently adopted accounting changes. 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 of this item decreased the Company's second quarter funds from operations was $(0.01) per share. 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. This policy change was made in order to conform to standards and practices utilized by the majority of the Company's peers in the industry. The impact of this policy change increased the Company's second quarter funds from operations by $0.03 per share. Had these changes not been adopted, Camden's second quarter 1998 FFO would have been $0.72 per share, an increase of 10.8% over the same period in 1997. Revenues for the second quarter of 1998 totaled $91.6 million compared to $54.1 million in the second quarter of 1997. For the six months ended June 30, 1998, revenues totaled $150.2 million compared to $83.5 million in 1997. Average rental revenues per apartment home per month during the quarter rose to $589, an increase of 12.0% over the same period in 1997. Occupancy levels averaged 93.0% during the second quarter of 1998 as compared to 93.8% during the second quarter of 1997. Net income to common shareholders for the quarter totaled $9.6 million or $0.21 per diluted share compared to $6.4 million or $0.24 per diluted share for the second quarter of 1997. For the six months, net income to common shareholders totaled $0.47 per diluted share or $18.5 million, compared to $0.48 per diluted share or $10.5 million in 1997. "With the completion of the Oasis merger, Camden is well positioned to capitalize on opportunities in our 16 core markets from Orlando to Orange County. Strong same store results and better than expected yields on our new developments contributed to another excellent quarter for the Company," said Ric Campo, Chairman and CEO. During the second quarter, lease-ups were completed at The Park at Centreport, 268 apartment homes, and The Park at Buckingham, 464 apartment homes, both located in Dallas/Fort Worth. Lease-ups at The Park at Towne Center, 240 apartment homes in Phoenix, and Renaissance Pointe Phase II, 306 apartment homes in Orlando, are expected to begin during the third quarter of 1998. On June 30, 1998, the Company sold 5,119 apartment homes in Las Vegas to the newly formed Sierra-Nevada Multifamily Investments, LLC, in which Camden is a 20% investor and a large corporate pension fund is an 80% investor. The formation of Sierra-Nevada allows Camden to continue to dominate the Las Vegas market while enhancing the Company's diversification, consistent with Camden's core market strategy. Subsequent to the end of the second quarter, the Company purchased three additional apartment communities including: Cedar Ridge -_ 420 homes in St. Louis, Live Oaks Plantation _ 770 homes in Tampa, and Sabal Club -_ 436 homes in Orlando. These three acquisitions totaled approximately $97 million. Camden Property Trust currently owns interests in and operates 151 properties containing 51,015 apartment homes in the Sunbelt and Midwestern markets from Florida to California. Upon completion of the 14 properties under construction, the Company's portfolio will increase to 56,695 apartment homes in 165 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 our website at http://www.camdenprop.com. Second Quarter 1998 -- Financial Highlights (Unaudited) Three Months Six Months Ended June 30, Ended June 30, 1998 1997 % 1998 1997 % Change Change Revenues $91,587 $54,072 69.4% $150,179 $83,544 79.8% Avg. monthly rent per operating unit 589 526 12.0% 574 525 9.3% Net income to common shareholders 9,568 6,429 48.8% 18,529 10,493 76.6% Per share - basic 0.22 0.24 (8.3%) 0.49 0.49 0.0% Per share - diluted 0.21 0.24 (12.5%) 0.47 0.48 (2.1%) Funds from operations 37,487 19,271 94.5% 61,435 30,148 103.8% Per share 0.74 0.65 13.8% 1.44 1.27 13.4% Per share - as adjusted 0.74 0.67 10.4% 1.45 1.31 10.7% (A,B) Dividends per share 0.505 0.490 3.1% 1.010 0.980 3.1% Interest expense coverage ratio 3.4 3.1 --- 3.6 3.3 --- Dividend payout ratio 68.2% 75.4% --- 70.1% 77.2% --- Same property NOI 7.0% 4.9% --- 8.1% 5.1% --- (# of units included) 26,424 15,119 --- 26,424 15,119 --- As of June 30, 1998 1997 Total assets $2,284,052 $1,265,718 Total debt 926,118 567,726 Common and common equivalent shares outstanding, end of period 50,914 29,633 Share price, end of period 29.75 31.63 Book equity value, end of period 1,204,320 568,532 Market equity value, end of period 1,514,692 937,144 Debt to total market capitalization ratio 37.9% 37.7% Debt to assets ratio 40.5% 44.9% Unencumbered real estate assets to unsecured debt ratio 282% 254% * Total assets for June 30, 1998 are estimated based on preliminary allocation of costs under purchase method of accounting for the acquisition of Oasis Residential, Inc. in April 1998. NOTES: A: 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 June 30, 1998 due to the adoption of Issue No. 97-11 amounted to $(0.01) per share. Had this Issue been adopted at January 1, 1997, funds from operations per share would have been affected by $(0.01) and $(0.03) per share for the three and six months ended June 30, 1997, respectively, and $(0.01) per share for the six months ended June 30, 1998. B: 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 June 30, 1998 due to the adoption of the new accounting policy amounted to $0.03 per share. Had this accounting policy been adopted at January 1, 1997, funds from operations per share would have been affected by $0.03 and $0.06 per share for the three and six months ended June 30, 1997, respectively, and $0.03 per share for the six months ended June 30, 1998. Operating Results (Unaudited) Three Months Ended Six Months Ended June 30,(A,B) June 30,(A,B) OPERATING DATA 1998 1997 1998 1997 Rental income $84,964 $51,084 $139,799 $79,038 Other property income 5,350 2,304 8,566 3,598 Total property income 90,314 53,388 148,365 82,636 Equity in income of joint ventures 430 436 722 436 Fee and asset management 237 119 349 263 Other income 606 129 743 209 Total revenues 91,587 54,072 150,179 83,544 Property operating and maintenance 27,749 18,663 46,878 28,655 Real estate taxes 8,680 5,975 14,969 9,667 General and administrative 2,250 1,216 3,890 2,040 Interest 15,512 9,090 23,266 13,276 Depreciation and amortization ** 22,489 12,102 36,977 18,530 Total expenses 76,680 47,046 125,980 72,168 Income before losses related to early retirement of debt and minority interest 14,907 7,026 24,199 11,376 Losses related to early retirement of debt --- --- --- (286) Income before minority interest 14,907 7,026 24,199 11,090 Minority interest (653) (597) (984) (597) Net income 14,254 6,429 23,215 10,493 Preferred share dividends (4,686) --- (4,686) ---- Net income to common shareholders $9,568 $6,429 $18,529 $10,493 FUNDS FROM OPERATIONS Net income to common shareholders $9,568 $6,429 $18,529 $10,493 Real estate depreciation22,094 11,807 36,294 17,996 Real estate depreciation from unconsolidated joint ventures 408 283 744 283 Losses related to early retirement of debt --- --- --- 286 Preferred share dividends4,686 --- 4,686 --- Minority interest 653 597 984 597 Interest on convertible subordinated debentures 71 133 180 429 Amortization of deferred costs on convertible debentures 7 22 18 64 Funds from operations $37,487 $19,271 $61,435 $30,148 PER SHARE DATA Net income - basic $0.22 $0.24 $0.49 $0.49 Net income - diluted 0.21 0.24 0.47 0.48 Funds from operations 0.74 0.65 1.44 1.27 Funds from operations - as adjusted 0.74 0.67 1.45 1.31 Cash distributions 0.505 0.490 1.010 0.980 Weighted average number of common and common equivalent shares outstanding: Basic 44,262 26,432 37,952 21,476 Diluted 46,826 26,729 40,581 21,746 FFO 50,867 29,633 42,736 23,689 PROPERTY DATA *** Total operating properties (end of period) 148 100 148 100 Total operating units in operating properties (end of period) 49,389 34,350 49,389 34,350 Total operating units (weighted average) 49,704 33,517 41,989 25,671 NOTES: A: 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 June 30, 1998 due to the adoption of Issue No. 97-11 amounted to $(0.01) per share. Had this Issue been adopted at January 1, 1997, funds from operations per share would have been affected by $(0.01) and $(0.03) per share for the three and six months ended June 30, 1997, respectively, and $(0.01) per share for the six months ended June 30, 1998. B: 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 June 30, 1998 due to the adoption of the new accounting policy amounted to $0.03 per share. Had this accounting policy been adopted at January 1, 1997, funds from operations per share would have been affected by $0.03 and $0.06 per share for the three and six months ended June 30, 1997, respectively, and $0.03 per share for the six months ended June 30, 1998. ** Depreciation and amortization is estimated based on preliminary allocation of costs under purchase method of accounting for the acquisition of Oasis Residential, Inc. in April 1998. *** 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 713-354-2500
