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Camden Property Trust Announces Third Quarter 2021 Operating Results

·21 min read

HOUSTON, October 28, 2021--(BUSINESS WIRE)--Camden Property Trust (NYSE:CPT) (the "Company") announced today operating results for the three and nine months ended September 30, 2021. Net Income Attributable to Common Shareholders ("EPS"), Funds from Operations ("FFO"), and Adjusted Funds from Operations ("AFFO") for the three and nine months ended September 30, 2021 are detailed below. A reconciliation of EPS to FFO is included in the financial tables accompanying this press release.

Three Months Ended

Nine Months Ended

September 30

September 30

Per Diluted Share

2021

2020

2021

2020

EPS

$0.29

$0.35

$0.90

$0.95

FFO

$1.36

$1.25

$3.88

$3.69

AFFO

$1.17

$1.03

$3.38

$3.14

Quarterly Growth

Sequential Growth

Year-To-Date Growth

Same Property Results

3Q21 vs. 3Q20

3Q21 vs. 2Q21

2021 vs. 2020

Revenues

5.1%

3.3%

2.9%

Expenses

4.7%

3.6%

5.4%

Net Operating Income ("NOI")

5.4%

3.1%

1.5%

Same Property Results

3Q21

3Q20

2Q21

Occupancy

97.3%

95.5%

96.9%

For 2021, the Company defines same property communities as communities owned and stabilized since January 1, 2020, excluding communities under redevelopment and properties held for sale. A reconciliation of net income to NOI and same property NOI is included in the financial tables accompanying this press release.

October Collections

Same Property Scheduled Rents

October 2021*

October 2020

3Q21

3Q20

Collected

98.7%

98.5%

98.8%

98.9%

Delinquent

1.3%

1.5%

1.2%

1.1%

*Data as of October 24, 2021

Rent is recognized as earned. The Company evaluates collectability on an ongoing basis and any accounts considered uncollectible are recorded against property revenues.

Operating Statistics - Same Property Portfolio

New Lease and Renewal Data - Date Signed (1) (2)

October 2021*

October 2020

3Q21(2)

3Q20(2)

New Lease Rates

18.3%

(3.5)%

19.8%

(3.3)%

Renewal Rates

13.8%

2.9%

12.1%

1.7%

Blended Rates

16.5%

(1.0)%

16.0%

(1.1)%

New Leases

1,008

1,481

1,568

1,845

Renewals

781

1,003

1,713

1,516

Total Leases

1,789

2,484

3,281

3,361

New Lease and Renewal Data - Date Effective (3) (4)

October 2021*

October 2020

3Q21(4)

3Q20(4)

New Lease Rates

19.4%

(4.0)%

16.6%

(2.8)%

Renewal Rates

12.6%

1.9%

8.5%

0.5%

Blended Rates

15.9%

(1.4)%

12.2%

(1.1)%

New Leases

1,551

1,781

1,936

2,024

Renewals

1,603

1,384

2,293

2,162

Total Leases

3,154

3,165

4,229

4,186

*Data as of October 24, 2021

(1)

Average change in same property new lease and renewal rates vs. expiring lease rates when signed.

(2)

Data represents average monthly leases signed during the period.

(3)

Average change in same property new lease and renewal rates vs. expiring lease rates when effective.

(4)

Data represents average monthly leases effective during the period

Occupancy and Turnover Data

October 2021*

October 2020

3Q21

3Q20

Occupancy

97.3%

95.4%

97.3%

95.5%

Annualized Gross Turnover

43%

53%

54%

61%

Annualized Net Turnover

36%

40%

47%

49%

*Data as of October 24, 2021

Development Activity

During the quarter, lease-up was completed at Camden Downtown in Houston, TX, and construction was completed at Camden North End II in Phoenix, AZ and Camden Lake Eola in Orlando, FL. Subsequent to the quarter-end, lease-up was completed at Camden North End II in Phoenix, AZ.

Development Communities - Construction Completed and Projects in Lease-Up ($ in millions)

Total

Total

% Leased

Community Name

Location

Homes

Cost

as of 10/24/2021

Camden North End II

Phoenix, AZ

343

$79.0

96%

Camden Lake Eola

Orlando, FL

360

124.7

82%

Total

703

$203.7

Development Communities - Construction Ongoing ($ in millions)

Total

Total

% Leased

Community Name

Location

Homes

Estimated Cost

as of 10/24/2021

Camden Buckhead

Atlanta, GA

366

$160.0

52%

Camden Hillcrest

San Diego, CA

132

95.0

32%

Camden Atlantic

Plantation, FL

269

100.0

Camden Tempe II

Tempe, AZ

397

115.0

Camden NoDa

Charlotte, NC

387

105.0

Camden Durham

Durham, NC

354

120.0

Total

1,905

$695.0

Acquisition Activity

During the quarter, the Company acquired Camden Central, a 368-home apartment community located in St. Petersburg, FL for approximately $176.3 million. Subsequent to quarter-end, the Company acquired Camden Greenville, a 558-home apartment community located in Dallas, TX for approximately $165.5 million and also acquired a 5.2-acre land parcel in Denver, CO for approximately $24.0 million for future development purposes.

Equity Issuance

During the three months ended September 30, 2021, the Company issued approximately 1.5 million common shares through its at-the-market ("ATM") share offering program at an average price of $150.28 per share, for total net consideration of approximately $220.7 million.

Liquidity Analysis

As of September 30, 2021, Camden had approximately $1.3 billion of liquidity comprised of approximately $428.2 million in cash and cash equivalents, and no amounts outstanding on its $900 million unsecured credit facility. The Company has no scheduled debt maturities until 2022, and at quarter-end had $242.4 million left to fund under its existing wholly-owned development pipeline. As of September 30, 2021, Camden had outstanding letters of credit totaling approximately $14.8 million, which reduced the availability under its unsecured credit facility to $885.2 million.

Earnings Guidance

Camden updated its earnings guidance for 2021 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for fourth quarter 2021 as detailed below.

4Q21

2021

2021 Midpoint

Per Diluted Share

Range

Range

Current

Prior

Change

EPS

$0.31 - $0.37

$1.21 - $1.27

$1.24

$1.19

$0.05

FFO

$1.46 - $1.52

$5.34 - $5.40

$5.37

$5.27

$0.10

2021

2021 Midpoint

Same Property Growth

Range

Current

Prior

Change

Revenues

4.00% - 4.50%

4.25%

3.75%

0.50%

Expenses

3.55% - 3.95%

3.75%

3.75%

0.00%

NOI

4.00% - 5.00%

4.50%

3.75%

0.75%

Camden intends to update its earnings guidance to the market on a quarterly basis. Additional information on the Company’s 2021 financial outlook and a reconciliation of expected EPS to expected FFO are included in the financial tables accompanying this press release.

Conference Call

Friday, October 29, 2021 at 10:00 AM CT
Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061
Passcode: 6751407
Webcast: https://services.choruscall.com/mediaframe/webcast.html?webcastid=fZSPWV6V

The Company strongly encourages interested parties to join the call via webcast in order to view any associated videos, slide presentations, etc. The dial-in phone line will be reserved for accredited analysts and investors who plan to pose questions to Management during the Q&A session of the call.

Supplemental financial information is available in the Investors section of the Company’s website under Earnings Releases or by calling Camden’s Investor Relations Department at (713) 354-2787.

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. Factors which may cause the Company’s actual results or performance to differ materially from those contemplated by forward-looking statements are described under the heading "Risk Factors" in Camden’s Annual Report on Form 10-K and in other filings with the Securities and Exchange Commission (SEC). Forward-looking statements made in today’s press release represent management’s current opinions at the time of this publication, and the Company assumes no obligation to update or supplement these statements because of subsequent events.

About Camden

Camden Property Trust, an S&P 400 Company, is a real estate company primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns interests in and operates 173 properties containing 59,240 apartment homes across the United States. Upon completion of 6 properties currently under development, the Company’s portfolio will increase to 61,145 apartment homes in 179 properties. Camden has been recognized as one of the 100 Best Companies to Work For® by FORTUNE magazine for 14 consecutive years, most recently ranking #8.

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

CAMDEN

OPERATING RESULTS

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

OPERATING DATA

Property revenues (a)

$294,130

$265,721

$838,221

$782,283

Property expenses

Property operating and maintenance

71,337

65,191

200,360

189,788

Real estate taxes

38,731

35,861

113,611

105,081

Total property expenses

110,068

101,052

313,971

294,869

Non-property income

Fee and asset management

3,248

2,542

7,717

7,449

Interest and other income

443

1,948

1,032

2,602

Income/(loss) on deferred compensation plans

(843

)

5,071

9,183

1,646

Total non-property income

2,848

9,561

17,932

11,697

Other expenses

Property management

6,640

5,894

19,200

18,360

Fee and asset management

1,159

1,018

3,310

2,681

General and administrative

14,960

12,726

44,428

40,350

Interest

24,987

24,265

72,715

67,454

Depreciation and amortization

111,462

90,575

304,189

275,237

Expense/(benefit) on deferred compensation plans

(843

)

5,071

9,183

1,646

Total other expenses

158,365

139,549

453,025

405,728

Gain on sale of land

382

Equity in income of joint ventures

2,540

2,154

6,652

5,909

Income from continuing operations before income taxes

31,085

36,835

95,809

99,674

Income tax expense

(480

)

(615

)

(1,292

)

(1,476

)

Net income

30,605

36,220

94,517

98,198

Less income allocated to non-controlling interests

(1,122

)

(1,263

)

(3,508

)

(3,480

)

Net income attributable to common shareholders (b)

$29,483

$34,957

$91,009

$94,718

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Net income

$30,605

$36,220

$94,517

$98,198

Other comprehensive income

Reclassification of net loss on cash flow hedging activities, prior service cost and net loss on post retirement obligation

372

366

1,117

1,098

Comprehensive income

30,977

36,586

95,634

99,296

Less income allocated to non-controlling interests

(1,122

)

(1,263

)

(3,508

)

(3,480

)

Comprehensive income attributable to common shareholders

$29,855

$35,323

$92,126

$95,816

PER SHARE DATA

Total earnings per common share - basic

$0.29

$0.35

$0.90

$0.95

Total earnings per common share - diluted

0.29

0.35

0.90

0.95

Weighted average number of common shares outstanding:

Basic

103,071

99,419

101,119

99,372

Diluted

103,171

99,455

101,199

99,414

(a)

We elected to combine lease and non-lease components and thus present rental revenue in a single line item in our consolidated statements of income and comprehensive income. For the three months ended September 30, 2021, we recognized $294.1 million of property revenue which consisted of approximately $259.1 million of rental revenue and approximately $35.0 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. This compares to property revenue of $265.7 million recognized for the three months ended September 30, 2020, made up of approximately $234.3 million of rental revenue, and approximately $31.4 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. For the nine months ended September 30, 2021, we recognized $838.2 million of property revenue which consisted of approximately $737.8 million of rental revenue and approximately $100.4 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. This compares to $782.3 million of property revenue recognized for the nine months ended September 30, 2020, made up of approximately $692.2 million of rental revenue, net of approximately $9.1 million related to the Resident Relief Funds, and approximately $90.1 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. Revenue related to utility rebilling to residents was $7.9 million and $7.4 million for the three months ended September 30, 2021 and 2020, respectively, and was $23.2 million and $21.4 million for the nine months ended September 30, 2021 and 2020, respectively.

(b)

Net income attributable to common shareholders for the three and nine months ended September 30, 2020 was negatively impacted by an approximate $0.4 million and $14.8 million Pandemic Related Impact. Please refer to page 27 of the supplement, footnote (a), for additional detail on the breakdown of the Pandemic Related Impact.

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 September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

FUNDS FROM OPERATIONS

Net income attributable to common shareholders (a)

$29,483

$34,957

$91,009

$94,718

Real estate depreciation and amortization

108,931

87,974

296,760

267,985

Adjustments for unconsolidated joint ventures

2,674

2,404

7,903

6,933

Income allocated to non-controlling interests

1,122

1,276

3,508

3,661

Funds from operations

$142,210

$126,611

$399,180

$373,297

Less: recurring capitalized expenditures (b)

(19,717

)

(22,299

)

(51,205

)

(55,906

)

Adjusted funds from operations

$122,493

$104,312

$347,975

$317,391

PER SHARE DATA

Funds from operations - diluted

$1.36

$1.25

$3.88

$3.69

Adjusted funds from operations - diluted

1.17

1.03

3.38

3.14

Distributions declared per common share

0.83

0.83

2.49

2.49

Weighted average number of common shares outstanding:

FFO/AFFO - diluted

104,812

101,203

102,879

101,162

PROPERTY DATA

Total operating properties (end of period) (c)

172

165

172

165

Total operating apartment homes in operating properties (end of period) (c)

58,682

56,383

58,682

56,383

Total operating apartment homes (weighted average)

51,011

49,158

50,202

49,081

(a)

Net income attributable to common shareholders for the three and nine months ended September 30, 2020 was negatively impacted by an approximate $0.4 million and $14.8 million Pandemic Related Impact. Please refer to page 27 of the supplement, footnote (a), for additional detail on the breakdown of the Pandemic Related Impact.

(b)

Capital expenditures necessary to help preserve the value of and maintain the functionality at our communities.

(c)

Includes joint ventures and properties held for sale, if any.

Note: Please refer to the following pages for definitions and reconciliations of all non-GAAP financial measures presented in this document.

CAMDEN

BALANCE SHEETS

(In thousands)

(Unaudited)

Sep 30,
2021

Jun 30,
2021

Mar 31,
2021

Dec 31,
2020

Sep 30,
2020

ASSETS

Real estate assets, at cost

Land

$1,317,431

$1,285,634

$1,233,937

$1,225,214

$1,216,942

Buildings and improvements

8,536,620

8,288,865

7,863,707

7,763,748

7,677,676

9,854,051

9,574,499

9,097,644

8,988,962

8,894,618

Accumulated depreciation

(3,319,206

)

(3,219,085

)

(3,124,504

)

(3,034,186

)

(2,944,769

)

Net operating real estate assets

6,534,845

6,355,414

5,973,140

5,954,776

5,949,849

Properties under development, including land

428,622

443,100

541,958

564,215

522,664

Investments in joint ventures

17,788

18,415

18,800

18,994

20,992

Total real estate assets

6,981,255

6,816,929

6,533,898

6,537,985

6,493,505

Accounts receivable – affiliates

18,686

19,183

19,502

20,158

20,152

Other assets, net (a)

252,079

241,687

213,126

216,276

217,534

Cash and cash equivalents

428,226

374,556

333,402

420,441

589,614

Restricted cash

5,321

4,762

4,105

4,092

3,918

Total assets

$7,685,567

$7,457,117

$7,104,033

$7,198,952

$7,324,723

LIABILITIES AND EQUITY

Liabilities

Notes payable

Unsecured

$3,169,428

$3,168,492

$3,167,557

$3,166,625

$3,225,799

Accounts payable and accrued expenses

191,648

155,057

159,111

175,608

183,654

Accrued real estate taxes

88,116

66,696

33,155

66,156

87,159

Distributions payable

87,919

86,689

84,282

84,147

84,137

Other liabilities (b)

194,634

193,975

185,852

189,829

177,967

Total liabilities

3,731,745

3,670,909

3,629,957

3,682,365

3,758,716

Equity

Common shares of beneficial interest

1,114

1,098

1,070

1,069

1,068

Additional paid-in capital

5,180,783

4,953,703

4,588,056

4,581,710

4,577,813

Distributions in excess of net income attributable to common shareholders

(954,880

)

(897,761

)

(842,628

)

(791,079

)

(737,556

)

Treasury shares

(334,066

)

(334,161

)

(335,511

)

(341,412

)

(341,831

)

Accumulated other comprehensive loss (c)

(4,266

)

(4,638

)

(5,010

)

(5,383

)

(5,431

)

Total common equity

3,888,685

3,718,241

3,405,977

3,444,905

3,494,063

Non-controlling interests

65,137

67,967

68,099

71,682

71,944

Total equity

3,953,822

3,786,208

3,474,076

3,516,587

3,566,007

Total liabilities and equity

$7,685,567

$7,457,117

$7,104,033

$7,198,952

$7,324,723

(a) Includes net deferred charges of:

$1,336

$1,655

$2,031

$2,299

$2,686

(b) Includes deferred revenues of:

$208

$232

$256

$284

$314

(c) Represents the unrealized net loss and unamortized prior service costs on post retirement obligations, and unrealized net gain (loss) on cash flow hedging activities.

CAMDEN

NON-GAAP FINANCIAL MEASURES

DEFINITIONS & RECONCILIATIONS

(In thousands, except per share amounts)

(Unaudited)

This document contains certain non-GAAP financial measures management believes are useful in evaluating an equity REIT's performance. Camden's definitions and calculations of non-GAAP financial measures may differ from those used by other REITs, and thus may not be comparable. The non-GAAP financial measures should not be considered as an alternative to net income as an indication of our operating performance, or to net cash provided by operating activities as a measure of our liquidity.

FFO

The National Association of Real Estate Investment Trusts ("NAREIT") currently defines FFO as net income (computed in accordance with accounting principles generally accepted in the United States of America ("GAAP")), excluding depreciation and amortization related to real estate, gains (or losses) from the sale of certain real estate assets (depreciable real estate), impairments of certain real estate assets (depreciable real estate), gains or losses from change in control, and adjustments for unconsolidated joint ventures to reflect FFO on the same basis. Our calculation of diluted FFO also assumes conversion of all potentially dilutive securities, including certain non-controlling interests, which are convertible into common shares. We consider FFO to be an appropriate supplemental measure of operating performance because, by excluding gains or losses on dispositions of depreciable real estate, and depreciation, FFO can assist in the comparison of the operating performance of a company’s real estate investments between periods or to different companies. A reconciliation of net income attributable to common shareholders to FFO is provided below:

Adjusted FFO

In addition to FFO, we compute Adjusted FFO ("AFFO") as a supplemental measure of operating performance. AFFO is calculated utilizing FFO less recurring capital expenditures which are necessary to help preserve the value of and maintain the functionality at our communities. Our definition of recurring capital expenditures may differ from other REITs, and there can be no assurance our basis for computing this measure is comparable to other REITs. A reconciliation of FFO to AFFO is provided below:

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

Net income attributable to common shareholders (a)

$29,483

$34,957

$91,009

$94,718

Real estate depreciation and amortization

108,931

87,974

296,760

267,985

Adjustments for unconsolidated joint ventures

2,674

2,404

7,903

6,933

Income allocated to non-controlling interests

1,122

1,276

3,508

3,661

Funds from operations

$142,210

$126,611

$399,180

$373,297

Less: recurring capitalized expenditures

(19,717

)

(22,299

)

(51,205

)

(55,906

)

Adjusted funds from operations

$122,493

$104,312

$347,975

$317,391

Weighted average number of common shares outstanding:

EPS diluted

103,171

99,455

101,199

99,414

FFO/AFFO diluted

104,812

101,203

102,879

101,162

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

Total Earnings Per Common Share - Diluted

$0.29

$0.35

$0.90

$0.95

Real estate depreciation and amortization

1.04

0.87

2.88

2.65

Adjustments for unconsolidated joint ventures

0.02

0.02

0.07

0.06

Income allocated to non-controlling interests

0.01

0.01

0.03

0.03

FFO per common share - Diluted

$1.36

$1.25

$3.88

$3.69

Less: recurring capitalized expenditures

(0.19

)

(0.22

)

(0.50

)

(0.55

)

AFFO per common share - Diluted

$1.17

$1.03

$3.38

$3.14

(a)

Net income attributable to common shareholders includes the approximate $0.4 million and $14.8 million Pandemic Related Impact for the three and nine months ended September 30, 2020. The total Pandemic Related Impact for the nine months ended September 30, 2020 was comprised of $9.5 million related to the Resident Relief Funds which were established in April 2020. Of this amount, approximately $9.1 million was paid to residents at our wholly-owned communities and approximately $1.3 million of Resident Relief Funds paid to residents of the operating communities owned by our unconsolidated joint ventures, of which, we recognized our ownership interest of $0.4 million in equity in income of joint ventures. Additionally, we incurred approximately $4.5 million of pandemic expenses at our operating communities, which included $2.8 million of bonuses paid to on-site employees who provided essential services during the pandemic and $1.7 million in other directly-related pandemic expenses for the nine months ended September 30, 2020. We also incurred approximately $0.8 million related to the Employee Relief Fund we established to help our employees impacted by the pandemic during the nine months ended September 30, 2020.

CAMDEN

NON-GAAP FINANCIAL MEASURES

DEFINITIONS & RECONCILIATIONS

(In thousands, except per share amounts)

(Unaudited)

Expected FFO

Expected FFO is calculated in a method consistent with historical FFO, and is considered an appropriate supplemental measure of expected operating performance when compared to expected earnings per common share (EPS). Guidance excludes gains, if any, on properties not currently held for sale due to the uncertain timing and extent of property dispositions and the resulting gains/losses on sales. A reconciliation of the ranges provided for diluted EPS to expected FFO per diluted share is provided below:

4Q21 Range

2021 Range

Low

High

Low

High

Expected earnings per common share - diluted

$0.31

$0.37

$1.21

$1.27

Expected real estate depreciation and amortization

1.11

1.11

3.99

3.99

Expected adjustments for unconsolidated joint ventures

0.03

0.03

0.10

0.10

Expected income allocated to non-controlling interests

0.01

0.01

0.04

0.04

Expected FFO per share - diluted

$1.46

$1.52

$5.34

$5.40

Note: This table contains forward-looking statements. Please see paragraph regarding forward-looking statements earlier in this document.

Net Operating Income (NOI)

NOI is defined by the Company as property revenue less property operating and maintenance expenses less real estate taxes. NOI is further detailed in the Components of Property NOI schedules on page 12 of the supplement. The Company considers NOI to be an appropriate supplemental measure of operating performance to net income attributable to common shareholders because it reflects the operating performance of our communities without allocation of corporate level property management overhead or general and administrative costs. A reconciliation of net income attributable to common shareholders to net operating income is provided below:

Three months ended September 30,

Nine months ended September 30,

2021

2020

2021

2020

Net income (a)

$30,605

$36,220

$94,517

$98,198

Less: Fee and asset management income

(3,248

)

(2,542

)

(7,717

)

(7,449

)

Less: Interest and other income

(443

)

(1,948

)

(1,032

)

(2,602

)

Less: (Income)/loss on deferred compensation plans

843

(5,071

)

(9,183

)

(1,646

)

Plus: Property management expense

6,640

5,894

19,200

18,360

Plus: Fee and asset management expense

1,159

1,018

3,310

2,681

Plus: General and administrative expense

14,960

12,726

44,428

40,350

Plus: Interest expense

24,987

24,265

72,715

67,454

Plus: Depreciation and amortization expense

111,462

90,575

304,189

275,237

Plus: Expense/(benefit) on deferred compensation plans

(843

)

5,071

9,183

1,646

Less: Gain on sale of land

(382

)

Less: Equity in income of joint ventures

(2,540

)

(2,154

)

(6,652

)

(5,909

)

Plus: Income tax expense

480

615

1,292

1,476

NOI (b) (c)

$184,062

$164,669

$524,250

$487,414

"Same Property" Communities

$158,309

$150,226

$461,350

$454,415

Non-"Same Property" Communities

21,721

14,232

55,550

43,802

Development and Lease-Up Communities

2,794

(2

)

4,445

(5

)

Pandemic Related Impact (b) (c)

(444

)

(13,614

)

Other

1,238

657

2,905

2,816

NOI (b) (c)

$184,062

$164,669

$524,250

$487,414

(a)

Net income includes the approximate $0.4 million and $14.8 million of Pandemic Related Impact for the three and nine months ended September 30, 2020, respectively. Please refer to page 27 of the supplement, footnote (a), for additional detail on the breakdown of the Pandemic Related Impact.

(b)

Two Resident Relief Funds were established for residents experiencing financial losses caused by the pandemic, and paid out approximately $9.1 million to approximately 7,100 Camden residents of our wholly-owned communities, which were recognized in 2Q20 as a reduction of property revenues.

(c)

We incurred approximately $0.4 million of directly-related pandemic expenses at our operating communities for the three months ended September 30, 2020 and approximately $4.5 million for the nine months ended September 30, 2020, which included $2.8 million of bonuses paid to on-site employees providing essential services during the pandemic and approximately $1.7 million in other directly-related pandemic expenses.

CAMDEN

NON-GAAP FINANCIAL MEASURES

DEFINITIONS & RECONCILIATIONS

(In thousands, except per share amounts)

(Unaudited)

Adjusted EBITDA

Adjusted EBITDA is defined by the Company as earnings before interest, taxes, depreciation and amortization, including net operating income from discontinued operations, excluding equity in (income) loss of joint ventures, (gain) loss on sale of unconsolidated joint venture interests, gain on acquisition of controlling interest in joint ventures, gain on sale of operating properties including land, loss on early retirement of debt, income (loss) allocated to non-controlling interests, as well as the direct Pandemic Related Impact. The Company considers Adjusted EBITDA to be an appropriate supplemental measure of operating performance to net income attributable to common shareholders because it represents income before non-cash depreciation and the cost of debt, and excludes gains or losses from property dispositions. Annualized Adjusted EBITDA is Adjusted EBITDA as reported for the period multiplied by 4 for quarter results or 1.33 for the 9 month results. A reconciliation of net income attributable to common shareholders to Adjusted EBITDA is provided below:

Three months ended September 30,

Nine months ended September 30,

2021

2020

2021

2020

Net income attributable to common shareholders (a)

$29,483

$34,957

$91,009

$94,718

Plus: Interest expense

24,987

24,265

72,715

67,454

Plus: Depreciation and amortization expense

111,462

90,575

304,189

275,237

Plus: Income allocated to non-controlling interests

1,122

1,263

3,508

3,480

Plus: Income tax expense

480

615

1,292

1,476

Plus: Pandemic Related Impact (b)

444

14,364

Less: Gain on sale of land

(382

)

Less: Equity in income of joint ventures

(2,540

)

(2,154

)

(6,652

)

(5,909

)

Adjusted EBITDA

$164,994

$149,965

$466,061

$450,438

Annualized Adjusted EBITDA

$659,976

$599,860

$621,415

$600,584

(a)

Net income attributable to common shareholders includes the approximate $0.4 million and $14.8 million Pandemic Related Impact for the three and nine months ended September 30, 2020, respectively. Please refer to page 27 of the supplement, footnote (a), for additional detail on the breakdown of the Pandemic Related Impact.

(b)

Approximately $0.4 million and $14.4 million of the stated Pandemic Related Impact, which consists of the Resident Relief Funds, Employee Relief Fund, directly-related pandemic expenses, and bonuses paid to on-site employees, has been added back to the Adjusted EBITDA calculation for the three and nine months ended September 30, 2020, respectively.

Net Debt to Annualized Adjusted EBITDA

The Company believes Net Debt to Annualized Adjusted EBITDA to be an appropriate supplemental measure of evaluating balance sheet leverage. Net Debt is defined by the Company as the average monthly balance of Total Debt during the period, less the average monthly balance of Cash and Cash Equivalents during the period. The following tables reconcile average Total debt to Net debt and computes the ratio to Adjusted EBITDA for the following periods:

Net Debt:

Average monthly balance for the

Average monthly balance for the

Three months ended September 30,

Nine months ended September 30,

2021

2020

2021

2020

Unsecured notes payable

$3,169,116

$3,225,490

$3,168,181

$3,028,011

Total debt

3,169,116

3,225,490

3,168,181

3,028,011

Less: Cash and cash equivalents

(297,048

)

(536,520

)

(311,558

)

(367,113

)

Net debt

$2,872,068

$2,688,970

$2,856,623

$2,660,898

Net Debt to Annualized Adjusted EBITDA:

Three months ended September 30,

Nine months ended September 30,

2021

2020

2021

2020

Net debt

$2,872,068

$2,688,970

$2,856,623

$2,660,898

Annualized Adjusted EBITDA

659,976

599,860

621,415

600,584

Net Debt to Annualized Adjusted EBITDA

4.4x

4.5x

4.6x

4.4x

View source version on businesswire.com: https://www.businesswire.com/news/home/20211028006028/en/

Contacts

Kim Callahan, 713-354-2549