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| Camden Property Trust Announces Increase in Funds From Operations Per Share |
HOUSTON, Oct. 26 /PRNewswire/ -- Camden Property Trust (NYSE: CPT) announced that its funds from operations (FFO) per share for the third quarter of 1998 totaled $0.75 per share or $38.0 million as compared to $0.66 per share or $22.0 million reported for the same period in 1997. For the nine months ended September 30, 1998, Camden's FFO totaled $2.19 per share or $99.4 million, which was $0.26 per share and $47.3 million over the $1.93 per share or $52.1 million reported for the same period in 1997. Revenues for the third quarter of 1998 totaled $86.5 million compared to $56.9 million in the third quarter of 1997. For the nine months ended September 30, 1998, revenues totaled $236.7 million compared to $140.5 million in 1997. Same property net operating income for the third quarter increased 6.7% over the third quarter of 1997, with revenues increasing 4.8% and operating expenses increasing 2.1%. For the nine months ended September 30, 1998, same property net operating income increased 8.0% over the same period in 1997, with revenues increasing 5.6%, and operating expenses increasing 2.2%. Average rental revenues per apartment home per month during the quarter rose to $604, an increase of 12.1% over the same period in 1997. Occupancy levels averaged 93.8% during the third quarter of 1998 as compared to 94.5% during the third quarter of 1997. Net income to common shareholders for the quarter totaled $14.7 million or $0.31 per diluted share compared to $8.3 million or $0.27 per diluted share for the third quarter of 1997. For the nine months, net income to common shareholders totaled $0.79 per diluted share or $33.2 million, compared to $0.76 per diluted share or $18.8 million in 1997. "Camden's core market operating strategy continues to produce solid earnings' growth for shareholders", said Ric Campo, Chairman and CEO. During the third quarter, lease-ups began at The Park at Towne Center, 240 apartment homes in Phoenix, and Renaissance Pointe Phase II, 306 apartment homes in Orlando. Camden Property Trust currently owns interests in and operates 151 properties containing 51,070 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 56,750 apartment homes in 165 properties. In addition to historical information, this press release contains forward-looking statements under the federal securities laws. 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 our website at http://www.camdenprop.com. Third Quarter 1998 -- Financial Highlights (In thousands, except per share, property data amounts, ratios and note amounts) (Unaudited) Three Months Nine Months Ended September 30, Ended September 30, 1998 1997 %Change 1998 1997 %Change Revenues $86,549 $56,939 52.0% $236,728 $140,483 68.5% Avg. monthly rent per operating unit 604 539 12.1% 585 530 10.4% Net income to common shareholders 14,650 8,260 77.4% 33,179 18,753 76.9% Per share - basic 0.33 0.27 22.2% 0.83 0.77 7.8% Per share - diluted 0.31 0.27 14.8% 0.79 0.76 3.9% Funds from operations 37,951 21,976 72.7% 99,386 52,124 90.7% Per share 0.75 0.66 13.6% 2.19 1.93 13.5% Per share - as adjusted 0.75 0.69 8.7% 2.20 2.00 10.0% (See Note 1 and Note 2) Dividends per share 0.505 0.490 3.1% 1.515 1.470 3.1% Interest expense coverage ratio 3.8 3.9 --- 3.7 3.5 --- Dividend payout ratio 67.3% 74.2% --- 69.2% 76.2% --- Same property NOI 6.7% --- --- 8.0% --- --- (# of units included) 26,696 --- --- 26,696 --- --- As of September 30, 1998 * 1997 Total assets $2,322,270 $1,273,708 Total debt 962,728 440,197 Common and common equivalent shares outstanding, end of period 50,750 34,654 Share price, end of period 27.94 30.63 Book equity value, end of period 1,195,467 705,002 Market equity value, end of period 1,417,828 1,061,279 Debt to total market capitalization ratio 40.4% 29.3% Debt to assets ratio 41.5% 34.6% Unencumbered real estate assets to unsecured debt ratio 293% 369% * Total assets for September 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. 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. The impact on the Company's funds from operations per share for the three months ended September 30, 1998 due to the adoption of Issue No. 97-11 amounted to $(530,000) or $(0.01) per share. Had this Issue been adopted at January 1, 1997, funds from operations per share would have been affected by $(406,000) or $(0.01) per share and $(1 million) or $(0.04) per share for the three and nine months ended September 30, 1997, respectively, and $(419,000) or $(0.01) per share for the nine months ended September 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. The impact on the Company's funds from operations per share for three months ended September 30, 1998 due to the adoption of the new accounting policy amounted to $1.8 million or $0.04 per share. Had this accounting policy been adopted at January 1, 1997, funds from operations per share would have been affected by $1.4 million or $0.04 per share and $2.8 million or $0.11 per share for the three and nine months ended September 30, 1997, respectively, and $1.1 million or $0.02 per share for the nine months ended September 30, 1998. OPERATING RESULTS (In thousands, except per share and property data amounts) (Unaudited) Three Months Ended Nine Months Ended September 30, * September 30, * OPERATING DATA 1998 1997 1998 1997 Rental income $79,802 $53,378 $219,601 $132,416 Other property income 5,052 2,893 13,618 6,491 Total property income 84,854 56,271 233,219 138,907 Equity in income of joint ventures 317 368 1,039 804 Fee and asset management 510 219 859 482 Other income 868 81 1,611 290 Total revenues 86,549 56,939 236,728 140,483 Property operating and maintenance 25,366 20,889 72,244 49,544 Real estate taxes 8,153 5,769 23,122 15,436 General and administrative 2,153 1,048 6,043 3,088 Interest 13,414 7,466 36,680 20,742 Depreciation and amortization ** 20,411 12,895 57,388 31,425 Total expenses 69,497 48,067 195,477 120,235 Income before losses related to early retirement of debt and minority interest 17,052 8,872 41,251 20,248 Losses related to early retirement of debt --- --- --- (286) Income before minority interest 17,052 8,872 41,251 19,962 Minority interest (59) (612) (1,043) (1,209) Net income 16,993 8,260 40,208 18,753 Preferred share dividends (2,343) --- (7,029) --- Net income to common shareholders $14,650 $8,260 $33,179 $18,753 FUNDS FROM OPERATIONS Net income to common shareholders $14,650 $8,260 $33,179 $18,753 Real estate depreciation 20,070 12,648 56,364 30,644 Real estate depreciation from unconsolidated joint ventures 754 313 1,498 596 Losses related to early retirement of debt --- --- --- 286 Preferred share dividends 2,343 --- 7,029 --- Minority interest 59 612 1,043 1,209 Interest on convertible subordinated debentures 69 130 249 559 Amortization of deferred costs on convertible debentures 6 13 24 77 Funds from operations $37,951 $21,976 $99,386 $52,124 PER SHARE DATA Net income - basic $0.33 $0.27 $0.83 $0.77 Net income - diluted 0.31 0.27 0.79 0.76 Funds from operations 0.75 0.66 2.19 1.93 Funds from operations - as adjusted 0.75 0.69 2.20 2.00 Cash distributions 0.505 0.490 1.515 1.470 Weighted average number of common and common equivalent shares outstanding: Basic 44,370 30,410 40,115 24,487 Diluted 47,437 33,128 43,116 24,791 FFO 50,800 33,428 45,454 26,978 PROPERTY DATA *** Total operating properties (end of period) 151 101 151 101 Total operating units in operating properties (end of period) 51,070 34,728 51,070 34,728 Total operating units (weighted average) 50,710 34,205 44,896 28,515 * See Note 1 and Note 2 above. ** 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
