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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