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| Camden Property Trust Reports Increase in Funds From Operations Per Share |
HOUSTON, Nov. 2 /PRNewswire/ -- Camden Property Trust (NYSE: CPT), announced that its funds from operations (FFO) for the third quarter of 1999 totaled $0.81 per diluted share or $38.4 million as compared to $0.75 per diluted share or $38.0 million reported for the same period in 1998, an 8.0% increase per diluted share. For the nine months ended September 30, 1999, Camden's FFO totaled $2.37 per diluted share or $113.7 million, a $14.4 million increase over the $99.4 million or $2.19 per diluted share reported for the same period in 1998. Revenues for the third quarter of 1999 totaled $94.2 million compared to $86.5 million in the third quarter of 1998. On a year-to-date basis, revenues totaled $274.4 million for the nine months ended September 30, 1999 and $236.7 million for the comparable period of 1998. For the 38,236 apartment homes included in the third quarter "same- property" results, revenues increased 3.0% while operating expenses increased 2.0%, resulting in a 3.5% increase in same-property net operating income (NOI). California, Colorado and Nevada (the markets Camden entered through a merger with Oasis Residential Inc. in April 1998) were three of the strongest performers during the quarter, with a weighted average NOI growth of 6.1%. On a year-to-date basis, total same property NOI growth was 4.4%, with revenue growth of 3.2% and expense growth of 1.2%. "Overall, our 1999 same-property performance is consistent with our original expectations of 4%-5%," said Ric Campo, Chairman and Chief Executive Officer. "While NOI growth in the Houston and Dallas markets has slowed this year, growth rates in a number of our other markets have clearly exceeded expectations. In general, our markets are showing good fundamentals with continuing job growth and a reduction in the number of new multifamily permits issued." During the third quarter, physical occupancy levels averaged 94.0% as compared to the 93.4% average occupancy reported last quarter and the 93.8% average occupancy reported for the third quarter of 1998. Average rental revenues per apartment home per month during the quarter rose $25 to $629, an increase of 4.1% over the same period in 1998. Net income to common shareholders for the quarter totaled $13.5 million or $0.32 per diluted share compared to $14.7 million or $0.31 per diluted share for the third quarter of 1998. For the nine months ended September 30, 1999, net income to common shareholders totaled $40.1 million or $0.94 per diluted share compared to $33.2 million or $0.79 per diluted share during the same period in 1998. Camden completed construction on three Houston properties (The Park at Midtown, The Park at Goose Creek and The Park at Holly Springs) and completed lease-ups at The Park at Midtown in Houston and Renaissance Pointe II in Orlando during the third quarter. Leasing continues to progress at seven communities including: The Park at Interlocken and The Park at Caley (both in Denver), The Park at Goose Creek, The Park at Greenway and The Park at Holly Springs (all located in the Houston area), The Park at Lee Vista in Orlando and The Park at Oxmoor in Louisville. Three additional communities (The Park at Arizona Center in Phoenix, The Park at Farmers Market in Dallas and The Park at Crown Valley in Mission Viejo) are expected to begin leasing during the fourth quarter of 1999 or first quarter of 2000. During the quarter, the Company issued $35.5 million of its 8.25% Perpetual Preferred Operating Partnership Units and repurchased $16.0 million of its common shares of beneficial interest, completing a cumulative total of $100 million common shares purchased through September 30, 1999. In a press release dated October 14, 1999, Camden announced its intention to repurchase an additional $100 million of its common shares using proceeds from asset sales. "With no debt maturities until October 2000 and only $77.5 million remaining to complete our current development pipeline, we believe our cash requirements for the next year can be funded through operating cash flow and the use of our new $375 million credit facility," said Steve Dawson, Chief Financial Officer. 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 151 properties containing 52,215 apartment homes in the Sunbelt and Midwestern markets from Florida to California. Upon completion of eight properties under development, the Company's portfolio will increase to 55,785 apartment homes in 159 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. THIRD QUARTER 1999 - FINANCIAL HIGHLIGHTS (In thousands, except per share, property data amounts, ratios and note amounts) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 1999 1998 % Change 1999 1998 % Change Revenues $94,177 $86,549 8.8% $274,424 $236,728 15.9% Avg. monthly rent per operating unit 629 604 4.1% 619 585 5.8% Net income to common shareholders 13,535 14,650 (7.6%) 40,079 33,179 20.8% Per share - basic 0.33 0.33 0.0% 0.96 0.83 15.7% Per share - diluted 0.32 0.31 3.2% 0.94 0.79 19.0% Funds from operations - diluted 38,431 37,951 1.3% 113,742 99,386 14.4% Per share 0.81 0.75 8.0% 2.37 2.19 8.2% Per share - as adjusted 0.81 0.75 8.0% 2.37 2.20 7.7% (See Note B and Note C) Dividends per share 0.520 0.505 3.0% 1.560 1.515 3.0% Dividend payout ratio 64.2% 67.3% 65.8% 69.2% EBITDA 54,334 50,877 159,139 135,319 Interest expensed 14,709 13,414 42,227 36,680 Interest capitalized 4,123 2,924 12,306 6,385 Total interest incurred 18,832 16,338 54,533 43,065 Principal amortization 1,185 711 3,510 1,847 Preferred dividends & distributions 4,754 2,343 12,421 7,029 Interest expense coverage ratio 3.7 x 3.8 x 3.8 x 3.7 x Total interest coverage ratio 2.9 x 3.1 x 2.9 x 3.1 x Fixed charge expense coverage ratio 2.6 x 3.1 x 2.7 x 3.0 x Total fixed charge coverage ratio 2.2 x 2.6 x 2.3 x 2.6 x Same property NOI increase 3.5% 4.4% (# of units included) 38,236 38,236 As of September 30, 1999 1998 Total assets $2,468,672 $2,322,270 Total debt $1,085,486 $962,728 Common and common equivalent shares, outstanding end of period (A) 47,037 50,750 Share price, end of period $26.88 $27.94 Perpetual preferred units, end of period $132,712 $0 Book equity value, end of period $1,073,609 $1,195,467 Market equity value, end of period (including perpetual preferred units) $1,396,831 $1,417,828 Debt to total market capitalization ratio 43.7% 40.4% Debt to assets ratio 44.0% 41.5% Unencumbered real estate assets (at cost) to unsecured debt ratio 267% 293% (A) Includes: 41,129 common shares (including restricted awards & options), 3,207 convertible preferred shares, 2,557 OP units and 144 convertible debentures. 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. 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 nine months ended September 30, 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. Had this accounting policy been adopted at January 1, 1998, funds from operations per share would have been affected by $1.1 million or $0.02 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,(D) September 30,(D) OPERATING DATA (E) 1999 1998 1999 1998 Rental income $86,753 $79,802 $252,582 $219,601 Other property income 6,006 4,973 16,585 13,539 Total property income 92,759 84,775 269,167 233,140 Equity in income of joint ventures (472) 317 472 1,039 Fee and asset management 1,404 510 3,627 859 Other income 486 947 1,158 1,690 Total revenues 94,177 86,549 274,424 236,728 Property operating and maintenance 28,205 25,506 80,344 72,755 Real estate taxes 9,165 8,153 27,669 23,122 General and administrative 2,473 2,013 7,272 5,532 Interest 14,709 13,414 42,227 36,680 Depreciation and amortization 22,703 20,411 65,541 57,388 Total expenses 77,255 69,497 223,053 195,477 Income before gain on sale of properties and minority interests 16,922 17,052 51,371 41,251 Gain on sale of properties and joint venture interests 2,259 --- 2,979 --- Losses related to early retirement of debt --- --- --- --- Income before minority interests 19,181 17,052 54,350 41,251 Preferred unit distributions (2,411) --- (5,392) --- Minority interests (892) (59) (1,850) (1,043) Net income 15,878 16,993 47,108 40,208 Preferred share dividends (2,343) (2,343) (7,029) (7,029) Net income to common shareholders $13,535 $14,650 $40,079 $33,179 FUNDS FROM OPERATIONS Net income to common shareholders $13,535 $14,650 $40,079 $33,179 Real estate depreciation 22,315 20,070 64,388 56,364 Real estate depreciation from unconsolidated joint ventures 797 754 2,423 1,498 Loss on sale of property held in joint venture 738 --- 738 --- Gain on sale of properties and joint venture interests (2,259) --- (2,979) --- Preferred share dividends 2,343 2,343 7,029 7,029 Minority interests 892 59 1,850 1,043 Interest on convertible subordinated debentures 63 69 195 249 Amortization of deferred costs on convertible debentures 7 6 19 24 Funds from operations - diluted $38,431 $37,951 $113,742 $99,386 PER SHARE DATA Net income - basic $0.33 $0.33 $0.96 $0.83 Net income - diluted 0.32 0.31 0.94 0.79 Funds from operations - diluted 0.81 0.75 2.37 2.19 Funds from operations - diluted (as adjusted) 0.81 0.75 2.37 2.20 Cash distributions 0.520 0.505 1.560 1.515 Weighted average number of common and common equivalent shares outstanding: Basic 40,939 44,370 41,668 40,115 Diluted 42,025 47,437 44,728 43,116 FFO - diluted 47,364 50,800 48,083 45,454 PROPERTY DATA Total operating properties (end of period) (F) 151 148 151 148 Total operating units in operating properties (end of period) (F) 52,215 51,070 52,215 51,070 Total operating units (weighted average) 45,992 44,006 45,304 41,712 (D) See Note A and Note B on previous page. (E) Certain reclassifications have been made to the Company's historical operating data. (F) 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
