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| Camden Property Trust Reports Increase in Funds From Operations Per Share |
HOUSTON, July 28 /PRNewswire/ -- Camden Property Trust (NYSE: CPT), announced that its funds from operations (FFO) for the second quarter of 1999 totaled $0.79 per diluted share or $37.5 million as compared to $0.74 per diluted share or $37.5 million reported for the same period in 1998. For the six months ended June 30, 1999, Camden's FFO totaled $1.55 per share or $75.3 million, a $13.9 million increase over the $1.44 per share or $61.4 million reported for the same period in 1998. Revenues for the second quarter of 1999 totaled $91.4 million compared to $91.6 million in the second quarter of 1998. On a year-to-date basis, revenues totaled $180.2 million for the six months ended June 30, 1999 and $150.2 million for the comparable period of 1998. "The slight decrease in revenues seen from the second quarter of 1998 to the second quarter of 1999 is primarily due to the transfer of 5,119 Las Vegas apartment homes into a joint venture on June 30, 1998," said Keith Oden, President and Chief Operating Officer. "A pro forma adjustment for the $8.9 million of revenues contributed by these properties in the second quarter of 1998 would result in quarter-to-quarter total revenue growth of nearly 11%." For the 38,236 apartment homes included in the second quarter "same- property" results, revenues increased 3.2% while operating expenses increased 1.2%, resulting in a 4.3% increase in same-property net operating income (NOI). Same-property NOI growth was particularly strong during the quarter in the California, Kentucky and North Carolina regions, with results of 26.7%, 13.5% and 12.7% respectively. On a year-to-date basis "same-property" NOI increased 4.5% with a 3.3% increase in revenues and 1.4% increase in expenses. "Houston and Dallas continue to perform in line with expectations with a weighted average NOI growth of 4.8% year-to-date," said Ric Campo, Chairman and Chief Executive Officer. Physical occupancy levels averaged 93.4% during the quarter, a slight increase over the 93.2% average occupancy reported last quarter and the 93.0% average occupancy reported in the second quarter of 1998. Average rental revenues per apartment home per month during the quarter rose to $618, an increase of 4.9% over the same period in 1998. Net income to common shareholders for the quarter totaled $12.8 million or $0.30 per diluted share compared to $9.6 million or $0.21 per diluted share for the second quarter of 1998. For the six months ended June 30, 1999, net income to common shareholders totaled $26.5 million or $0.61 per diluted share compared to $18.5 million or $0.47 per diluted share during the same period in 1998. Camden recently completed the lease-up of The Park at Midtown in Houston and expects to complete lease-up of the second phase of Renaissance Pointe in Orlando during the third quarter of 1999. Leasing continued to progress during the quarter at The Park at Interlocken in Denver, The Park at Goose Creek, The Park at Greenway, and The Park at Holly Springs, all located in the Houston area. The Company recently began lease-ups of both The Park at Lee Vista in Orlando and The Park at Oxmoor in Louisville. Leasing activity year-to-date has exceeded expectations, with an average of 40 apartment homes leased per month at the six properties under lease-up during the first and second quarters, compared to a budgeted rate of 31 apartment homes per month. "The Park at Midtown has proven to be one of Camden's most successful development projects ever with lease-up completed six months ahead of schedule at rents $0.09 per square foot higher than anticipated," said Keith Oden. During the quarter, the Company issued $200 million of 7.0% five-year senior unsecured notes and $15 million of 6.7% three-year medium-term notes. Camden currently has $14.5 million available under its medium-term note program, and has oversubscribed the recent syndication of a new senior unsecured revolving line of credit. "We expect that a new line of credit for approximately $375 million will be executed during the third quarter of 1999 and will include 14 banks, 10 of which are new to Camden's unsecured facility," said Steve Dawson, Chief Financial Officer. "The new line will replace the Company's three current credit facilities (totaling $275 million) which had no balances outstanding at quarter end." Camden Property Trust is a real estate company engaged in the ownership, development, acquisition, 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 56,210 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 that 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. SECOND QUARTER 1999 - FINANCIAL HIGHLIGHTS (In thousands, except per share, property data amounts, ratios and note amounts) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 1999 1998 % Change 1999 1998 % Change Revenues $91,412 $91,587 (0.2%) $180,247 $150,179 20.0% Avg. monthly rent per operating unit 618 589 4.9% 615 574 7.1% Net income to common shareholders 12,838 9,568 34.2% 26,544 18,529 43.3% Per share - basic 0.31 0.22 40.9% 0.63 0.49 28.6% Per share - diluted 0.30 0.21 42.9% 0.61 0.47 29.8% Funds from operations - diluted 37,503 37,487 0.0% 75,311 61,435 22.6% Per share 0.79 0.74 6.8% 1.55 1.44 7.6% Per share - as adjusted 0.79 0.74 6.8% 1.55 1.45 6.9% (See Note 1 and Note 2) Dividends per share 0.520 0.505 3.0% 1.040 1.010 3.0% Dividend payout ratio 65.8% 68.2% --- 67.1% 70.1% --- EBITDA 53,170 52,908 --- 104,805 84,442 --- Interest expensed 14,044 15,512 --- 27,518 23,266 --- Interest capitalized 4,304 2,420 --- 8,182 3,461 --- Total interest incurred 18,348 17,932 --- 35,700 26,727 --- Principal amortization 1,048 884 --- 2,325 1,136 --- Preferred dividend payments 4,462 4,686 --- 7,667 4,686 --- Interest expense coverage ratio 3.8 x 3.4 x --- 3.8 x 3.6 x --- Total interest coverage ratio 2.9 x 3.0 x --- 2.9 x 3.2 x --- Fixed charge expense coverage ratio 2.7 x 2.5 x --- 2.8 x 2.9 x --- Total fixed charge coverage ratio 2.2 x 2.3 x --- 2.3 x 2.6 x --- Same property NOI increase 4.3% --- --- 4.5% --- --- (# of units included) 38,236 --- --- 38,236 --- --- As of June 30, 1999 1998 Total assets $2,422,444 $2,284,052 Total debt $1,063,337 $926,118 Common and common equivalent shares, outstanding end of period 47,672 50,914 Share price, end of period $27.75 $29.75 Perpetual preferred units, end of period $97,926 $0 Book equity value, end of period $1,093,883 $1,204,320 Market equity value, end of period * $1,420,824 $1,514,692 Debt to total market capitalization ratio 42.8% 37.9% Debt to assets ratio 43.9% 40.5% Unencumbered real estate assets (at cost) to unsecured debt ratio 270% 282% * Includes perpetual preferred 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 six months ended June 30, 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 six months ended June 30, 1998. OPERATING RESULTS (In thousands, except per share and property data amounts) (Unaudited) Three Months Ended Six Months Ended June 30, * June 30, * OPERATING DATA ** 1999 1998 1999 1998 Rental income $83,695 $84,964 $165,829 $139,799 Other property income 5,420 5,350 10,579 8,566 Total property income 89,115 90,314 176,408 148,365 Equity in income of joint ventures 428 430 944 722 Fee and asset management 1,273 237 2,223 349 Other income 596 606 672 743 Total revenues 91,412 91,587 180,247 150,179 Property operating and maintenance 26,563 27,931 52,139 47,249 Real estate taxes 9,303 8,680 18,504 14,969 General and administrative 2,376 2,068 4,799 3,519 Interest 14,044 15,512 27,518 23,266 Depreciation and amortization 21,486 22,489 42,838 36,977 Total expenses 73,772 76,680 145,798 125,980 Income before gain on sale of property and minority interests 17,640 14,907 34,449 24,199 Gain on sale of property --- --- 720 --- Income before minority interests 17,640 14,907 35,169 24,199 Preferred unit distributions (2,119) --- (2,981) --- Minority interests (340) (653) (958) (984) Net income 15,181 14,254 31,230 23,215 Preferred share dividends (2,343) (4,686) (4,686) (4,686) Net income to common shareholders $12,838 $9,568 $26,544 $18,529 FUNDS FROM OPERATIONS Net income to common shareholders $12,838 $9,568 $26,544 $18,529 Real estate depreciation 21,109 22,094 42,073 36,294 Real estate depreciation from unconsolidated joint ventures 801 408 1,626 744 Gain on sale of property --- --- (720) --- Preferred share dividends 2,343 4,686 4,686 4,686 Minority interests 340 653 958 984 Interest on convertible subordinated debentures 66 71 132 180 Amortization of deferred costs on convertible debentures 6 7 12 18 Funds from operations - diluted $37,503 $37,487 $75,311 $61,435 PER SHARE DATA Net income - basic $0.31 $0.22 $0.63 $0.49 Net income - diluted 0.30 0.21 0.61 0.47 Funds from operations - basic 0.84 0.78 1.65 1.53 Funds from operations - diluted 0.79 0.74 1.55 1.44 Funds from operations - diluted (as adjusted) 0.79 0.74 1.55 1.45 Cash distributions 0.520 0.505 1.040 1.010 Weighted average number of common and common equivalent shares outstanding: Basic 41,243 44,262 42,038 37,952 Diluted 44,320 46,826 45,093 40,581 FFO - diluted 47,676 50,867 48,449 42,736 PROPERTY DATA Total operating properties (end of period) *** 149 148 149 148 Total operating units in operating properties (end of period) *** 51,490 49,389 51,490 49,389 Total operating units (weighted average) 45,178 48,119 44,960 40,564 * See Note 1 and Note 2 on the previous chart. ** Certain reclassifications have been made to the Company's historical operating data. *** 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
