Australia markets closed
  • ALL ORDS

    7,745.90
    -25.90 (-0.33%)
     
  • AUD/USD

    0.6893
    -0.0031 (-0.45%)
     
  • ASX 200

    7,539.00
    -19.10 (-0.25%)
     
  • OIL

    73.99
    +0.60 (+0.82%)
     
  • GOLD

    1,885.20
    +8.60 (+0.46%)
     
  • BTC-AUD

    33,132.18
    -1,045.44 (-3.06%)
     
  • CMC Crypto 200

    524.62
    -12.24 (-2.28%)
     

Camden Property Trust Announces Third Quarter 2022 Operating Results

HOUSTON, October 27, 2022--(BUSINESS WIRE)--Camden Property Trust (NYSE:CPT) (the "Company") announced today operating results for the three and nine months ended September 30, 2022. 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, 2022 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

2022

2021

2022

2021

EPS(1)(2)

$0.27

$0.29

$5.62

$0.90

FFO(1)

$1.70

$1.36

$4.85

$3.88

AFFO(1)

$1.47

$1.17

$4.28

$3.38

(1) For the three and nine months ended September 30, 2022, EPS, FFO, and AFFO included approximately $0.01 per diluted share in storm-related expenses related to Hurricane Ian.

(2) For the nine months ended September 30, 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

3Q22 vs. 3Q21

3Q22 vs. 2Q22

2022 vs. 2021

Revenues

11.7%

3.1%

11.6%

Expenses(1)

4.0%

2.8%

4.1%

Net Operating Income ("NOI")(1)

16.3%

3.2%

16.0%

(1) For the three and nine months ended September 30, 2022, same property results exclude approximately $1.0 million of storm-related expenses related to Hurricane Ian.

Same Property Results

3Q22

3Q21

2Q22

Occupancy

96.6%

97.2%

96.9%

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)

October 2022*

October 2021

3Q22

3Q21

New Lease Rates

5.2%

17.6%

11.8%

19.2%

Renewal Rates

9.4%

13.8%

11.5%

12.3%

Blended Rates

6.9%

15.9%

11.6%

15.6%

New Lease and Renewal Data - Date Effective (2)

October 2022*

October 2021

3Q22

3Q21

New Lease Rates

8.0%

19.1%

14.2%

16.2%

Renewal Rates

11.3%

13.1%

14.0%

8.8%

Blended Rates

9.7%

16.0%

14.1%

12.2%

*Data as of October 24, 2022

(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

October 2022*

October 2021

3Q22

3Q21

Occupancy

96.1%

97.2%

96.6%

97.2%

Annualized Gross Turnover

49%

47%

59%

55%

Annualized Net Turnover

41%

39%

51%

47%

*Data as of October 24, 2022

Development Activity

During the quarter, lease-up was completed at Camden Buckhead in Atlanta, GA and Camden Hillcrest in San Diego, CA and construction commenced at Camden Woodmill Creek in The Woodlands, TX and Camden Long Meadow Farms in Richmond, TX. Additionally, leasing began at Camden Atlantic in Plantation, FL and leasing continued at Camden Tempe II in Phoenix, AZ.

Development Communities - Construction Ongoing ($ in millions)

Total

Total

% Leased

Community Name

Location

Homes

Estimated Cost

as of 10/24/2022

Camden Atlantic

Plantation, FL

269

$100.0

40%

Camden Tempe II

Tempe, AZ

397

115.0

33%

Camden NoDa

Charlotte, NC

387

105.0

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

2,219

$758.0

Capital Markets Transactions

During the quarter, the Company amended and restated its existing unsecured credit facility adding a $300 million delayed draw unsecured term loan facility and increased the capacity of the unsecured revolving credit facility from $900 million to $1.2 billion, for a total facility capacity of $1.5 billion. The Company also extended the maturity date of its $40 million unsecured floating rate term loan with an unrelated third party to mature in 2024.

Subsequent to quarter end, Camden's Board of Trust Managers increased its share repurchase authorization from $269 million to $500 million. No share repurchases were made during the quarter or subsequent to quarter end.

Liquidity Analysis

As of September 30, 2022, Camden had over $1.5 billion of liquidity comprised of approximately $62.0 million in cash and cash equivalents, and nearly $1.5 billion of availability under its unsecured credit facility and delayed draw unsecured term loan facility. At quarter-end, the Company had $348.4 million left to fund under its existing wholly-owned development pipeline.

Earnings Guidance

Camden updated its earnings guidance for 2022 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for fourth quarter 2022 as detailed below. Expected EPS excludes gains, if any, from real estate transactions not completed by quarter end.

4Q22

2022

2022 Midpoint

Per Diluted Share

Range

Range

Current

Prior

Change

EPS

$0.36 - $0.40

$5.98 - $6.02

$6.00

$5.97

$0.03

FFO

$1.72 - $1.76

$6.57 - $6.61

$6.59

$6.58

$0.01

2022

2022 Midpoint

Same Property Growth

Range

Current

Prior

Change

Revenues

11.00% - 11.50%

11.25%

11.25%

—%

Expenses

4.75% - 5.25%

5.00%

5.00%

—%

NOI

14.25% - 15.25%

14.75%

14.75%

—%

Camden intends to update its earnings guidance to the market on a quarterly basis. Additional information on the Company’s 2022 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 28, 2022 at 10:00 AM CT
Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061
Passcode: 5737190
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 171 properties containing 58,433 apartment homes across the United States. Upon completion of 7 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 September 30,

Nine Months Ended September 30,

2022

2021

2022

2021

OPERATING DATA

Property revenues (a)

$

373,772

$

294,130

$

1,046,847

$

838,221

Property expenses (b)

Property operating and maintenance

84,649

71,337

234,504

200,360

Real estate taxes

48,182

38,731

136,448

113,611

Total property expenses

132,831

110,068

370,952

313,971

Non-property income

Fee and asset management

617

3,248

4,257

7,717

Interest and other income

88

443

2,881

1,032

Income/(loss) on deferred compensation plans

(6,275

)

(843

)

(28,450

)

9,183

Total non-property income/(loss)

(5,570

)

2,848

(21,312

)

17,932

Other expenses

Property management

6,732

6,640

21,228

19,200

Fee and asset management

556

1,159

2,090

3,310

General and administrative

14,002

14,960

44,526

44,428

Interest

29,192

24,987

82,756

72,715

Depreciation and amortization

158,877

111,462

429,749

304,189

Expense/(benefit) on deferred compensation plans

(6,275

)

(843

)

(28,450

)

9,183

Total other expenses

203,084

158,365

551,899

453,025

Gain on sale of operating property

36,372

Gain on acquisition of unconsolidated joint venture interests

474,146

Equity in income of joint ventures

2,540

3,048

6,652

Income from continuing operations before income taxes

32,287

31,085

616,250

95,809

Income tax expense

(737

)

(480

)

(2,213

)

(1,292

)

Net income

31,550

30,605

614,037

94,517

Less income allocated to non-controlling interests

(1,706

)

(1,122

)

(6,133

)

(3,508

)

Net income attributable to common shareholders

$

29,844

$

29,483

$

607,904

$

91,009

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Net income

$

31,550

$

30,605

$

614,037

$

94,517

Other comprehensive income

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

369

372

1,107

1,117

Comprehensive income

31,919

30,977

615,144

95,634

Less income allocated to non-controlling interests

(1,706

)

(1,122

)

(6,133

)

(3,508

)

Comprehensive income attributable to common shareholders

$

30,213

$

29,855

$

609,011

$

92,126

PER SHARE DATA

Total earnings per common share - basic

$

0.27

$

0.29

$

5.66

$

0.90

Total earnings per common share - diluted

0.27

0.29

5.62

0.90

Weighted average number of common shares outstanding:

Basic

108,466

103,071

107,314

101,119

Diluted

108,506

103,171

108,099

101,199

(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, 2022, we recognized $373.8 million of property revenue which consisted of approximately $332.0 million of rental revenue and approximately $41.8 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 $294.1 million recognized for the three months ended September 30, 2021, made up 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. For the nine months ended September 30, 2022, we recognized $1,046.8 million of property revenue which consisted of approximately $929.9 million of rental revenue and approximately $116.9 million of amounts received under contractual terms for other services considered to be non-lease contracts. This compares to the $838.2 million of property revenue recognized for the nine months ended September 30, 2021, made up 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. Revenue related to utility rebilling to residents was $9.8 million and $7.9 million for the three months ended September 30, 2022 and 2021, respectively and was $27.5 million and $23.2 million for the nine months ended September 30, 2022 and 2021, respectively.

(b) For both the three and nine months ended September 30, 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 September 30,

Nine Months Ended September 30,

2022

2021

2022

2021

FUNDS FROM OPERATIONS

Net income attributable to common shareholders (a)

$

29,844

$

29,483

$

607,904

$

91,009

Real estate depreciation and amortization

156,065

108,931

421,808

296,760

Adjustments for unconsolidated joint ventures

2,674

2,709

7,903

Income allocated to non-controlling interests

1,706

1,122

6,133

3,508

Gain on sale of operating property

(36,372

)

Gain on acquisition of unconsolidated joint venture interests

(474,146

)

Funds from operations

$

187,615

$

142,210

$

528,036

$

399,180

Less: recurring capitalized expenditures (b)

(26,001

)

(19,717

)

(61,682

)

(51,205

)

Adjusted funds from operations

$

161,614

$

122,493

$

466,354

$

347,975

PER SHARE DATA

Funds from operations - diluted

$

1.70

$

1.36

$

4.85

$

3.88

Adjusted funds from operations - diluted

1.47

1.17

4.28

3.38

Distributions declared per common share

0.94

0.83

2.82

2.49

Weighted average number of common shares outstanding:

FFO/AFFO - diluted

110,112

104,812

108,972

102,879

PROPERTY DATA

Total operating properties (end of period) (c)

171

172

171

172

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

58,433

58,682

58,433

58,682

Total operating apartment homes (weighted average)

58,427

51,011

55,881

50,202

(a) Net income attributable to common shareholders for the three and nine months ended September 30, 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)

Sep 30,
2022

Jun 30,
2022

Mar 31,
2022

Dec 31,
2021

Sep 30,
2021

ASSETS

Real estate assets, at cost

Land

$

1,706,396

$

1,695,118

$

1,343,209

$

1,349,594

$

1,317,431

Buildings and improvements

10,574,820

10,440,037

8,651,674

8,624,734

8,536,620

12,281,216

12,135,155

9,994,883

9,974,328

9,854,051

Accumulated depreciation

(3,709,487

)

(3,572,764

)

(3,436,969

)

(3,358,027

)

(3,319,206

)

Net operating real estate assets

8,571,729

8,562,391

6,557,914

6,616,301

6,534,845

Properties under development, including land

529,076

581,844

488,100

474,739

428,622

Investments in joint ventures

13,181

13,730

17,788

Total real estate assets

9,100,805

9,144,235

7,059,195

7,104,770

6,981,255

Accounts receivable – affiliates

13,258

13,258

13,258

18,664

18,686

Other assets, net (a)

231,645

249,865

254,763

234,370

252,079

Cash and cash equivalents

62,027

72,095

1,129,716

613,391

428,226

Restricted cash

6,390

6,563

5,778

5,589

5,321

Total assets

$

9,414,125

$

9,486,016

$

8,462,710

$

7,976,784