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