Camden Property Trust Announces First Quarter 2009 Operating Results (Business Wire)

Thu, 30 Apr 2009 21:11:00 Etc/GM

Same-Property Results

For the 42,670 apartment homes included in consolidated same-property results, first quarter 2009 same-property net operating income (“NOI”) declined 3.8% compared to the first quarter of 2008, with revenues declining 0.5% and expenses increasing 5.5%. On a sequential basis, first quarter 2009 same-property NOI declined 2.3% compared to the fourth quarter of 2008, with revenues declining 1.1% and expenses increasing 0.9% compared to the prior quarter. Same-property physical occupancy levels for the portfolio averaged 93.6% during the first quarter of 2009, compared to 93.7% in both the first quarter and fourth quarter of 2008.

The Company defines same-property communities as communities owned and stabilized as of January 1, 2008, excluding properties held for sale and communities under redevelopment. A reconciliation of net income attributable to common shareholders to net operating income and same-property net operating income is included in the financial tables accompanying this press release.

Development Activity

During the first quarter, the Company completed construction on Camden Dulles Station in Oak Hill, VA. As of March 31, 2009, construction had been completed on all of Camden’s wholly-owned development projects, with no material obligations remaining to fund. The Company currently has six wholly-owned apartment communities completed and in lease-up: Camden Potomac Yard in Arlington, VA, a $104.6 million project that is currently 87% leased; Camden Summerfield in Landover, MD, a $62.6 million project that is currently 86% leased; Camden Orange Court in Orlando, FL, a $45.5 million project that is currently 73% leased; Camden Cedar Hills in Austin, TX, a $23.6 million project that is currently 95% leased; Camden Whispering Oaks in Houston, TX, a $27.4 million project that is currently 87% leased; and Camden Dulles Station in Oak Hill, VA, a $72.2 million project that is currently 57% leased. The Company also had one joint venture community which was completed and in lease-up: Camden College Park in College Park, MD, a $127.9 million project that is currently 76% leased.

The Company has two joint venture communities currently under construction and in lease-up: Camden Amber Oaks in Austin, TX, a $40.0 million joint venture project that is currently 39% leased; and Braeswood Place in Houston, TX, a $48.6 million joint venture project that is currently 25% leased. Camden has two additional joint venture communities currently under construction in Houston, TX: Camden Travis Street, a $39.0 million project, and Belle Meade, a $33.2 million project. Both projects are scheduled for initial occupancy in mid- to late-2009.

Properties Held for Sale

At March 31, 2009, Camden had one operating community held for sale: Camden West Oaks, a 671-home apartment community in Houston, TX.

Financing Activities

During the quarter, Camden retired approximately $50.5 million of secured mortgage debt and $40.0 million of unsecured medium-term notes, using proceeds from its unsecured Line of Credit. Subsequent to quarter-end, the Company obtained a $420 million secured credit facility. [See press release dated April 17, 2009 for more details].

Debt Repurchases

During the first quarter, Camden repurchased and retired $7.4 million of senior unsecured notes, resulting in a $0.2 million gain on early retirement of debt. Subsequent to quarter-end, Camden repurchased and retired an additional $10.3 million of senior unsecured notes.

On April 28, 2009, Camden completed a Tender Offer for certain outstanding notes. The aggregate principal amount accepted for purchase totaled $169.5 million. The Company intends to repurchase and retire these notes on May 1, 2009 using cash balances on hand and funds from its unsecured Line of Credit. [See press release dated April 28, 2009 for more details].

Liquidity

As of March 31, 2009, Camden had $241 million outstanding on its $600 million unsecured Line of Credit. Subsequent to quarter-end, the Company repaid all balances outstanding under the Line of Credit with proceeds from a $420 million secured credit facility. Upon completion of the Tender Offer, Camden will have $82 million of debt maturities remaining in 2009 and $186 million of debt maturities in 2010.

Earnings Guidance

Camden updated its earnings guidance for 2009 based on its current and expected views of the apartment market and general economic conditions. Full-year 2009 FFO is expected to be $3.20 to $3.45 per diluted share, and full-year 2009 EPS is expected to be $0.12 to $0.37 per diluted share. Second quarter 2009 earnings guidance is $0.82 to $0.86 per diluted share for FFO and $0.05 to $0.09 per diluted share for EPS. The Company’s second quarter 2009 earnings guidance includes a $0.02 per diluted share gain on early retirement of debt recognized in April 2009, but excludes other potential future gains on the sale of properties and the early retirement of debt. Camden intends to update its earnings guidance to the market on a quarterly basis.

The Company’s 2009 earnings guidance is based on projections of same-property revenue declines between 0.5% and 2.5%, expense growth between 5.0% and 6.25%, and NOI declines between 4.5% and 7.5%. A reconciliation of expected net income attributable to common shareholders to expected FFO is included in the financial tables accompanying this press release.

Conference Call

The Company will hold a conference call on Friday, May 1, 2009 at 11:00 a.m. Central Time to review its first quarter 2009 results and discuss its outlook for future performance. To participate in the call, please dial (866) 843-0890 (domestic) or (412) 317-9250 (international) by 10:50 a.m. Central Time and enter passcode: 9409451, or join the live webcast of the conference call by accessing the Investor Relations section of the Company’s website at camdenliving.com. Supplemental financial information is available in the Investor Relations section of the Company’s website under Earnings Releases or by calling Camden’s Investor Relations Department at (800) 922-6336.

Annual Meeting of Shareholders

Camden’s Annual Meeting of Shareholders will be held on May 6, 2009 at the Renaissance Hotel, 6 East Greenway Plaza, Houston, Texas, at 10:00 a.m., Central Time. The Company’s proxy statement, 10-K, and Annual Report to Shareholders are available in the Investor Relations section of the company’s website at camdenliving.com. If you wish to receive hard copies of these documents, please contact Camden’s Investor Relations Department at ir@camdenliving.com.

Forward-Looking Statements

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 risks and uncertainties which are difficult to predict.

About Camden

Camden Property Trust, an S&P 400 Company, is a real estate company engaged in the ownership, development, acquisition, management and disposition of multifamily apartment communities. Camden owns interests in and operates 182 properties containing 63,269 apartment homes across the United States. Upon completion of four properties under development, the Company’s portfolio will increase to 64,329 apartment homes in 186 properties. Camden was recently named by FORTUNE® Magazine for the second consecutive year as one of the “100 Best Companies to Work For” in America.

For additional information, please contact Camden’s Investor Relations Department at (800) 922-6336 or (713) 354-2787 or access our website at camdenliving.com.

CAMDEN		OPERATING RESULTS
		(In thousands, except per share and property data amounts)
(Unaudited)		Three Months Ended
		March 31,
OPERATING DATA		2009			2008
Property revenues
Rental revenues		$	136,500		$	134,263
Other property revenues			20,532			17,201
Total property revenues			157,032			151,464
Property expenses
Property operating and maintenance			42,283			39,179
Real estate taxes			18,532			17,281
Total property expenses			60,815			56,460
Non-property income
Fee and asset management income			2,031			2,412
Interest and other income			735			1,333
Income (loss) on deferred compensation plans			(4,152	)		(8,541	)
Total non-property income (loss)			(1,386	)		(4,796	)
Other expenses
Property management			4,929			4,900
Fee and asset management			1,135			1,725
General and administrative			8,232			7,960
Interest			32,245			32,573
Depreciation and amortization			43,980			41,516
Amortization of deferred financing costs			817			734
Expense (benefit) on deferred compensation plans			(4,152	)		(8,541	)
Total other expenses			87,186			80,867
Income from continuing operations before gain on sale of properties, including land, gain on early retirement of debt, equity in income (loss) of joint ventures, and distributions on perpetual preferred units			7,645			9,341
Gain on sale of properties, including land			-			1,106
Gain on early retirement of debt			166			-
Equity in income (loss) of joint ventures			408			(47	)
Distributions on perpetual preferred units			(1,750	)		(1,750	)
Income from continuing operations before income taxes			6,469			8,650
Income tax expense - current			(299	)		(273	)
Income from continuing operations			6,170			8,377
Income from discontinued operations			585			1,680
Gain on sale of discontinued operations			-			6,127
Net income			6,755			16,184
Less net income allocated to noncontrolling interest			(521	)		(1,269	)
Net income attributable to common shareholders		$	6,234		$	14,915
CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME
Net income		$	6,755		$	16,184
Other comprehensive income (loss)
Unrealized loss on cash flow hedging activities			(2,936	)		(19,425	)
Reclassification of net losses on cash flow hedging activities			5,276			1,330
Comprehensive income (loss)			9,095			(1,911	)
Less net income allocated to noncontrolling interest			(521	)		(1,269	)
Comprehensive income (loss) attributable to common shareholders		$	8,574			($3,180	)
PER SHARE DATA
Net income attributable to common shareholders - basic		$	0.11		$	0.27
Net income attributable to common shareholders - diluted			0.11			0.27
Income from continuing operations attributable to common shareholders - basic			0.10			0.13
Income from continuing operations attributable to common shareholders - diluted			0.10			0.13
Weighted average number of common and common equivalent shares outstanding:
Basic			55,552			54,965
Diluted			56,047			55,625
Note: Please refer to the following pages for definitions and reconciliations of all non-GAAP financial measures presented in this document.

CAMDEN		FUNDS FROM OPERATIONS
		(In thousands, except per share and property data amounts)
(Unaudited)		Three Months Ended
		March 31,
FUNDS FROM OPERATIONS		2009		2008
Net income attributable to common shareholders		$	6,234	$	14,915
Real estate depreciation and amortization from continuing operations			43,010		40,653
Real estate depreciation from discontinued operations			-		1,285
Adjustments for unconsolidated joint ventures			1,916		1,539
Income allocated to noncontrolling interest			421		1,156
(Gain) loss on sale of operating properties, net of taxes			-		(1,106	)
(Gain) loss on sale of discontinued operations			-		(6,112	)
Funds from operations - diluted		$	51,581	$	52,330
PER SHARE DATA
Funds from operations - diluted		$	0.88	$	0.89
Cash distributions			0.70		0.70
Weighted average number of common and common equivalent shares outstanding:
FFO - diluted			58,471		58,544
PROPERTY DATA
Total operating properties (end of period) (a) source: http://biz.yahoo.com/bw/090430/20090430006665.html?.v=1 Add comment Name Email Your Comments © copyright 2006 Finance and money analyses