Camden Property Trust Announces 2022 Operating Results, 2023 Financial Outlook, and First Quarter 2023 Dividend

HOUSTON, February 02, 2023--(BUSINESS WIRE)--Camden Property Trust (NYSE:CPT) (the "Company") announced today operating results for the three and twelve months ended December 31, 2022. Net Income Attributable to Common Shareholders ("EPS"), Funds from Operations ("FFO"), and Adjusted Funds from Operations ("AFFO") for the three and twelve months ended December 31, 2022 are detailed below. A reconciliation of EPS to FFO is included in the financial tables accompanying this press release.

	Three Months Ended		Twelve Months Ended
	December 31,		December 31,
Per Diluted Share	2022	2021	2022	2021
EPS(1)(2)	$0.42	$2.02	$6.04	$2.96
FFO(1)	$1.74	$1.51	$6.59	$5.39
AFFO(1)	$1.48	$1.30	$5.76	$4.68
(1) For the twelve months ended December 31, 2022, EPS, FFO, and AFFO included approximately $0.01 per diluted share in storm-related expenses related to Hurricane Ian. (2) For the twelve months ended December 31, 2022, EPS included a non-cash gain on acquisition of unconsolidated joint venture interests of approximately $4.37 per diluted share.

	Quarterly Growth	Sequential Growth	Year-To-Date Growth
Same Property Results	4Q22 vs. 4Q21	4Q22 vs. 3Q22	2022 vs. 2021
Revenues	9.9%	0.8%	11.2%
Expenses(1)	8.1%	(3.9)%	5.1%
Net Operating Income ("NOI")(1)	10.9%	3.3%	14.6%
(1) For the twelve months ended December 31, 2022, same property results exclude approximately $1.0 million of storm-related expenses related to Hurricane Ian.

Same Property Results	4Q22	4Q21	3Q22
Occupancy	95.8%	97.1%	96.6%

For 2022, the Company defines same property communities as communities wholly-owned and stabilized since January 1, 2021, 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.

Operating Statistics - Same Property Portfolio

New Lease and Renewal Data - Date Signed (1)	January 2023*	January 2022	4Q22	4Q21
New Lease Rates	2.0%	16.5%	4.0%	16.7%
Renewal Rates	7.3%	13.5%	8.4%	14.2%
Blended Rates	4.2%	14.9%	6.1%	15.5%
New Lease and Renewal Data - Date Effective (2)	January 2023*	January 2022	4Q22	4Q21
New Lease Rates	1.2%	16.6%	5.3%	17.7%
Renewal Rates	8.4%	15.0%	10.1%	13.6%
Blended Rates	4.8%	15.8%	7.6%	15.7%
*Data as of January 30, 2023 (1) Average change in same property new lease and renewal rates vs. expiring lease rates when signed. (2) Average change in same property new lease and renewal rates vs. expiring lease rates when effective.

Occupancy and Turnover Data	January 2023*	January 2022	4Q22	4Q21
Occupancy	95.4%	97.1%	95.8%	97.1%
Annualized Gross Turnover	42%	43%	44%	42%
Annualized Net Turnover	34%	37%	37%	36%
*Data as of January 30, 2023

Development Activity

During the quarter, construction was completed at Camden Atlantic in Plantation, FL and leasing continued at Camden Tempe 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 1/30/2023
Camden Atlantic	Plantation, FL	269	$100.2	87%

Development Communities - Construction Ongoing ($ in millions)

		Total	Total	% Leased
Community Name	Location	Homes	Estimated Cost	as of 1/30/2023
Camden Tempe II	Tempe, AZ	397	$115.0	50%
Camden NoDa	Charlotte, NC	387	108.0
Camden Durham	Durham, NC	420	145.0
Camden Village District	Raleigh, NC	369	138.0
Camden Woodmill Creek	The Woodlands, TX	189	75.0
Camden Long Meadow Farms	Richmond, TX	188	80.0
Total		1,950	$661.0

Capital Markets Transactions

During the quarter, the Company used the $300 million delayed draw unsecured term loan facility and borrowings from our existing unsecured credit facility to repay the principal amount of our 3.15% senior unsecured note payable which matured on December 15, 2022, for a total of $350.0 million, plus accrued interest. The current weighted average interest rate on our unsecured term loan facility and unsecured credit facility is 5.2%.

Liquidity Analysis

As of December 31, 2022, Camden had nearly $1.2 billion of liquidity comprised of approximately $10.7 million in cash and cash equivalents, and over $1.1 billion of availability under its unsecured credit facility. At quarter-end, the Company had $306.7 million left to fund under its existing wholly-owned development pipeline.

Earnings Guidance

Camden provided initial earnings guidance for 2023 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for first quarter 2023 as detailed below. Expected EPS excludes gains, if any, from future real estate transactions.

	1Q23	2023
Per Diluted Share	Range	Range	Midpoint
EPS	$0.36 - $0.40	$1.53 - $1.83	$1.68
FFO	$1.63- $1.67	$6.70 - $7.00	$6.85

A reconciliation of 2023 FFO per share guidance as compared to 2022 actual results is detailed below.

2022 FFO per share - actual	$ 6.59
5% Same store NOI growth	0.36
Additional NOI from Fund acquisition	0.26
Growth in other non-same store/development communities	0.16
Increased interest expense	(0.21)
2022 Amortization of net below market leases - Fund acquisition	(0.07)
2022 Equity in income of joint ventures and management fees - Fund	(0.07)
Higher overhead expenses	(0.06)
Additional shares outstanding for full year 2023	(0.06)
Other - 2022 Chirp earnout and 2022 disposition	(0.05)
2023 FFO per share - midpoint guidance	$ 6.85

		2023
Same Property Growth		Range	Midpoint
Revenues		4.10% - 6.10%	5.10%
Expenses		4.75% - 6.25%	5.50%
NOI		3.50% - 6.50%	5.00%

Camden intends to update its earnings guidance to the market on a quarterly basis. Additional information on the Company’s 2023 financial outlook including key assumptions for same property growth and a reconciliation of expected EPS to expected FFO are included in the financial tables accompanying this press release.

Quarterly Dividend Declaration

Camden's Board of Trust Managers declared a first quarter 2023 dividend of $1.00 per common share payable on April 17, 2023 to shareholders of record as of March 31, 2023. In declaring the dividend, the Board of Trust Managers considered a number of factors, including the Company's past performance and future prospects, as described in this press release.

Conference Call

Friday, February 3, 2023 at 10:00 AM CT
Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061; Passcode: 2673669
Webcast: https://investors.camdenliving.com

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 500 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 172 properties containing 58,702 apartment homes across the United States. Upon completion of 6 properties currently under development, the Company’s portfolio will increase to 60,652 apartment homes in 178 properties. Camden has been recognized as one of the 100 Best Companies to Work For® by FORTUNE magazine for 15 consecutive years, most recently ranking #26. 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 December 31,					Twelve Months Ended December 31,
	2022		2021			2022		2021
OPERATING DATA
Property revenues (a)	$375,909		$305,364			$1,422,756		$1,143,585
Property expenses (b)
Property operating and maintenance	81,233		67,343			315,737		267,703
Real estate taxes	45,896		35,711			182,344		149,322
Total property expenses	127,129		103,054			498,081		417,025
Non-property income
Fee and asset management	931		2,815			5,188		10,532
Interest and other income	138		191			3,019		1,223
Income/(loss) on deferred compensation plans	8,813		5,186			(19,637	)	14,369
Total non-property income/(loss)	9,882		8,192			(11,430	)	26,124
Other expenses
Property management	7,373		7,139			28,601		26,339
Fee and asset management	426		1,201			2,516		4,511
General and administrative	15,887		14,940			60,413		59,368
Interest	30,668		24,582			113,424		97,297
Depreciation and amortization	147,271		116,503			577,020		420,692
Expense/(benefit) on deferred compensation plans	8,813		5,186			(19,637	)	14,369
Total other expenses	210,438		169,551			762,337		622,576
Gain on sale of operating properties	—		174,384			36,372		174,384
Gain on acquisition of unconsolidated joint venture interests	—		—			474,146		—
Equity in income of joint ventures	—		3,125			3,048		9,777
Income from continuing operations before income taxes	48,224		218,460			664,474		314,269
Income tax expense	(753	)	(601	)		(2,966	)	(1,893	)
Net income	47,471		217,859			661,508		312,376
Less income allocated to non-controlling interests	(1,762	)	(4,961	)		(7,895	)	(8,469	)
Net income attributable to common shareholders	$45,709		$212,898			$653,613		$303,907
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$47,471		$217,859			$661,508		$312,376
Other comprehensive income
Unrealized gain and unamortized prior service cost on post retirement obligation	489		154			489		154
Reclassification of net loss on cash flow hedging activities, prior service cost and net loss on post retirement obligation	369		373			1,476		1,490
Comprehensive income	48,329		218,386			663,473		314,020
Less income allocated to non-controlling interests	(1,762	)	(4,961	)		(7,895	)	(8,469	)
Comprehensive income attributable to common shareholders	$46,567		$213,425			$655,578		$305,551
PER SHARE DATA
Total earnings per common share - basic	$0.42		$2.03			$6.07		$2.97
Total earnings per common share - diluted	0.42		2.02			6.04		2.96
Weighted average number of common shares outstanding:
Basic	108,467		104,611			107,605		101,999
Diluted	108,512		105,448			108,388		102,829

(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 December 31, 2022, we recognized $375.9 million of property revenue which consisted of approximately $336.0 million of rental revenue and approximately $39.9 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 $305.4 million recognized for the three months ended December 31, 2021, made up of approximately $271.4 million of rental revenue and approximately $34.0 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. For the twelve months ended December 31, 2022, we recognized $1,422.7 million of property revenue which consisted of approximately $1,265.9 million of rental revenue and approximately $156.8 million of amounts received under contractual terms for other services considered to be non-lease contracts. This compares to the $1,143.6 million of property revenue recognized for the twelve months ended December 31, 2021, made up of approximately $1,009.2 million of rental revenue and approximately $134.4 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 $10.0 million and $8.3 million for the three months ended December 31, 2022 and 2021, respectively and was $37.5 million and $31.5 million for the twelve months ended December 31, 2022 and 2021, respectively.
(b)		For the twelve months ended December 31, 2022 expenses include approximately $1.0 million in storm-related expenses related to Hurricane Ian.
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 December 31,					Twelve Months Ended December 31,
	2022		2021			2022		2021
FUNDS FROM OPERATIONS
Net income attributable to common shareholders (a)	$45,709		$212,898			$653,613		$303,907
Real estate depreciation and amortization	144,105		114,007			565,913		410,767
Adjustments for unconsolidated joint ventures	—		2,688			2,709		10,591
Income allocated to non-controlling interests	1,762		4,961			7,895		8,469
Gain on sale of operating property	—		(174,384	)		(36,372	)	(174,384	)
Gain on acquisition of unconsolidated joint venture interests	—		—			(474,146	)	—
Funds from operations	$191,576		$160,170			$719,612		$559,350
Less: recurring capitalized expenditures (b)	(29,033	)	(22,398	)		(90,715	)	(73,603	)
Adjusted funds from operations	$162,543		$137,772			$628,897		$485,747
PER SHARE DATA
Funds from operations - diluted	$1.74		$1.51			$6.59		$5.39
Adjusted funds from operations - diluted	1.48		1.30			5.76		4.68
Distributions declared per common share	0.94		0.83			3.76		3.32
Weighted average number of common shares outstanding:
FFO/AFFO - diluted	110,117		106,322			109,261		103,747
PROPERTY DATA
Total operating properties (end of period) (c)	172		171			172		171
Total operating apartment homes in operating properties (end of period) (c)	58,702		58,300			58,702		58,300
Total operating apartment homes (weighted average)	58,621		51,313			56,566		50,479

(a)		Net income attributable to common shareholders for the twelve months ended December 31, 2022 included approximately $1.0 million of storm-related expenses related to Hurricane Ian.
(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)
	Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021
ASSETS
Real estate assets, at cost
Land	$1,716,273		$1,706,396		$1,695,118		$1,343,209		$1,349,594
Buildings and improvements	10,674,619		10,574,820		10,440,037		8,651,674		8,624,734
	12,390,892		12,281,216		12,135,155		9,994,883		9,974,328
Accumulated depreciation	(3,848,111	)	(3,709,487	)	(3,572,764	)	(3,436,969	)	(3,358,027	)
Net operating real estate assets	8,542,781		8,571,729		8,562,391		6,557,914		6,616,301
Properties under development, including land	524,981		529,076		581,844		488,100		474,739
Investments in joint ventures	—		—		—		13,181		13,730
Total real estate assets	9,067,762		9,100,805		9,144,235		7,059,195		7,104,770
Accounts receivable – affiliates	13,364		13,258		13,258		13,258		18,664
Other assets, net (a)	229,371		231,645		249,865		254,763		234,370
Cash and cash equivalents	10,687		62,027		72,095		1,129,716		613,391
Restricted cash	6,751		6,390		6,563		5,778		5,589
Total assets	$9,327,935		$9,414,125		$9,486,016		$8,462,710		$7,976,784
LIABILITIES AND EQUITY
Liabilities
Notes payable
Unsecured	$3,165,924		$3,173,198		$3,222,252		$3,671,309		$3,170,367
Secured	514,989		514,843		514,698		—		—
Accounts payable and accrued expenses	211,370