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

Rhea-AI Summary

Camden Property Trust (NYSE:CPT) reported Q4 and full-year 2022 results, revealing EPS of $0.42 for Q4 and $6.04 for the year. Funds from Operations (FFO) rose to $1.74 in Q4 and $6.59 overall, while Adjusted FFO (AFFO) reached $1.48 for Q4 and $5.76 for the year. Revenues showed a 9.9% year-over-year increase, with Net Operating Income (NOI) up by 10.9%. Occupancy dipped to 95.8% in Q4 from 97.1% a year prior. The Board declared a $1.00 dividend per share, payable on April 17, 2023. Initial earnings guidance for Q1 2023 suggests an EPS range of $0.36 - $0.40.

Positive

• FFO increased by 5% year-over-year, indicating robust operational performance.
• Declared a $1.00 dividend per share, demonstrating commitment to shareholder returns.
• Strong liquidity position with nearly $1.2 billion in liquidity available.

Negative

• EPS dropped significantly from $2.02 in Q4 2021 to $0.42 in Q4 2022.
• Occupancy rates decreased from 97.1% to 95.8% year-over-year, indicating potential leasing challenges.

HOUSTON--(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		212,558		195,070		169,973		191,651
Accrued real estate taxes	95,551		125,210		86,952		36,988		66,673
Distributions payable	103,628		103,620		103,621		100,880		88,786
Other liabilities (b)	179,552		176,334		186,143		197,021		193,052
Total liabilities	4,271,014		4,305,763		4,308,736		4,176,171		3,710,529
Equity
Common shares of beneficial interest	1,156		1,156		1,156		1,127		1,126
Additional paid-in capital	5,897,454		5,893,623		5,890,792		5,396,267		5,363,530
Distributions in excess of net income attributable to common shareholders	(581,532	)	(525,127	)	(452,865	)	(848,074	)	(829,453	)
Treasury shares	(328,684	)	(329,027	)	(328,975	)	(329,521	)	(333,974	)
Accumulated other comprehensive loss (c)	(1,774	)	(2,632	)	(3,001	)	(3,370	)	(3,739	)
Total common equity	4,986,620		5,037,993		5,107,107		4,216,429		4,197,490
Non-controlling interests	70,301		70,369		70,173		70,110		68,765
Total equity	5,056,921		5,108,362		5,177,280		4,286,539		4,266,255
Total liabilities and equity	$9,327,935		$9,414,125		$9,486,016		$8,462,710		$7,976,784
(a) Includes net deferred charges of:	$8,413		$8,961		$307		$693		$969
(b) Includes deferred revenues of:	$304		$331		$358		$384		$334
(c) Represents the unrealized net loss and unamortized prior service costs on post retirement obligations, and unrealized net 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 December 31,					Twelve Months Ended December 31,
	2022		2021			2022		2021
Net income attributable to common shareholders	$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	(29,033	)	(22,398	)		(90,715	)	(73,603	)
Adjusted funds from operations	$162,543		$137,772			$628,897		$485,747
Weighted average number of common shares outstanding:
EPS diluted	108,512		105,448			108,388		102,829
FFO/AFFO diluted	110,117		106,322			109,261		103,747
	Three Months Ended December 31,					Twelve Months Ended December 31,
	2022		2021			2022		2021
Total Earnings Per Common Share - Diluted	$0.42		$2.02			$6.04		$2.96
Real estate depreciation and amortization	1.31		1.07			5.16		3.96
Adjustments for unconsolidated joint ventures	—		0.03			0.02		0.09
Income allocated to non-controlling interests	0.01		0.03			0.04		0.06
Gain on sale of operating property	—		(1.64	)		(0.33	)	(1.68	)
Gain on acquisition of unconsolidated joint venture interests	—		—			(4.34	)	—
FFO per common share - Diluted	$1.74		$1.51			$6.59		$5.39
Less: recurring capitalized expenditures	(0.26	)	(0.21	)		(0.83	)	(0.71	)
AFFO per common share - Diluted	$1.48		$1.30			$5.76		$4.68

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, from real estate transactions not sold as of quarter close 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:

	1Q23 Range			2023 Range
	Low	High		Low	High
Expected earnings per common share - diluted	$0.36	$0.40		$1.53	$1.83
Expected real estate depreciation and amortization	1.26	1.26		5.12	5.12
Expected income allocated to non-controlling interests	0.01	0.01		0.05	0.05
Expected FFO per share - diluted	$1.63	$1.67		$6.70	$7.00
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 11 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 December 31,					Twelve months ended December 31,
	2022		2021			2022		2021
Net income	$47,471		$217,859			$661,508		$312,376
Less: Fee and asset management income	(931	)	(2,815	)		(5,188	)	(10,532	)
Less: Interest and other income	(138	)	(191	)		(3,019	)	(1,223	)
Less: Income/(loss) on deferred compensation plans	(8,813	)	(5,186	)		19,637		(14,369	)
Plus: Property management expense	7,373		7,139			28,601		26,339
Plus: Fee and asset management expense	426		1,201			2,516		4,511
Plus: General and administrative expense	15,887		14,940			60,413		59,368
Plus: Interest expense	30,668		24,582			113,424		97,297
Plus: Depreciation and amortization expense	147,271		116,503			577,020		420,692
Plus: Expense/(benefit) on deferred compensation plans	8,813		5,186			(19,637	)	14,369
Less: Gain on sale of operating properties	—		(174,384	)		(36,372	)	(174,384	)
Less: Gain on acquisition of unconsolidated joint venture interests	—		—			(474,146	)	—
Less: Equity in income of joint ventures	—		(3,125	)		(3,048	)	(9,777	)
Plus: Income tax expense	753		601			2,966		1,893
NOI	$248,780		$202,310			$924,675		$726,560
"Same Property" Communities	$197,575		$178,163			$753,204		$656,985
Non-"Same Property" Communities	48,713		20,238			164,621		51,041
Development and Lease-Up Communities	1,025		—			1,255		8
Hurricane Expenses	—		—			(1,000	)	—
Other	1,467		3,909			6,595		18,526
NOI	$248,780		$202,310			$924,675		$726,560

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 acquisition 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, as well as income (loss) allocated to non-controlling interests. 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. A reconciliation of net income attributable to common shareholders to Adjusted EBITDA is provided below:

	Three months ended December 31,				Twelve months ended December 31,
	2022	2021			2022		2021
Net income attributable to common shareholders	$45,709	$212,898			$653,613		$303,907
Plus: Interest expense	30,668	24,582			113,424		97,297
Plus: Depreciation and amortization expense	147,271	116,503			577,020		420,692
Plus: Income allocated to non-controlling interests	1,762	4,961			7,895		8,469
Plus: Income tax expense	753	601			2,966		1,893
Plus: Hurricane expenses	—	—			1,000		—
Less: Gain on sale of operating properties	—	(174,384	)		(36,372	)	(174,384	)
Less: Gain on acquisition of unconsolidated joint venture interests	—	—			(474,146	)	—
Less: Equity in income of joint ventures	—	(3,125	)		(3,048	)	(9,777	)
Adjusted EBITDA	$226,163	$182,036			$842,352		$648,097
Annualized Adjusted EBITDA	$904,652	$728,144			$842,352		$648,097

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 December 31,					Twelve months ended December 31,
			2022		2021			2022		2021
Unsecured notes payable			$3,188,976		$3,170,054			$3,242,448		$3,168,649
Secured notes payable			514,940		—			386,096		—
Total debt			3,703,916		3,170,054			3,628,544		3,168,649
Less: Cash and cash equivalents			(3,562	)	(385,194	)		(186,178	)	(329,967	)
Net debt			$3,700,354		$2,784,860			$3,442,366		$2,838,682

Net Debt to Annualized Adjusted EBITDA:

			Three months ended December 31,			Twelve months ended December 31,
			2022	2021		2022	2021
Net debt			$3,700,354	$2,784,860		$3,442,366	$2,838,682
Annualized Adjusted EBITDA			904,652	728,144		842,352	648,097
Net Debt to Annualized Adjusted EBITDA			4.1x	3.8x		4.1x	4.4x

CAMDEN		2023 FINANCIAL OUTLOOK
		AS OF FEBRUARY 2, 2023
(Unaudited)

Earnings Guidance - Per Diluted Share
Expected FFO per share - diluted			$6.70 - $7.00
"Same Property" Communities
Number of Units - 2023			48,463
2022 Base Net Operating Income			$790 million
Total Revenue Growth			4.10% - 6.10%
Total Expense Growth			4.75% - $6.25%
Net Operating Income Growth			3.50% - 6.50%
Impact from 1% change in NOI Growth is approximately $0.072 / share
2023 Assumptions
Earned-in Rent Growth as of December 31, 2022 & Loss to Lease Capture			5.00%
December 2022 to December 2023 Assumed Market Rent Growth			3.00%
Occupancy			95.7%
Rental Income as a % of Property Revenues			89%
Other Income Growth			1.50%
Other Income as a % of Property Revenues			11%
Property Tax Growth			6.50%
Property Tax as a % of Property Expenses			37%
Insurance Growth			12.50%
Insurance Growth as a % of Property Expenses			6%
Capitalized Expenditures
Recurring			$96 - $100 million
Revenue Enhancing Capex, Repositions, Redevelopment, and Repurposes (a)			$93 - $97 million
Non - Recurring Capital Expenditures			$26 - $28 million
Acquisitions/Dispositions
Acquisition Volume (consolidated on balance sheet)			$0 - $500 million
Disposition Volume (consolidated on balance sheet)			$0 - $500 million
Development
Development Starts (consolidated on balance sheet)			$250 - $600 million
Development Spend (consolidated on balance sheet)			$275 - $305 million
Non-Property Income
Non-Property Income			$2 - $3 million
Includes: Fee and asset management income and interest and other income
Corporate Expenses
General and Administrative Expenses			$60 - $64 million
Property Management Expense			$31 - $35 million
Fee and Asset Management Expense			$1 - $2 million
Corporate G&A Depreciation/Amortization			$12 - $14 million
Income Tax Expense			$2 - $4 million
Capital
Expensed Interest			$135 - $139 million
Capitalized Interest			$19 - $21 million

(a)		Capital expenditures that improve a community's cash flow and competitive position, including kitchen and bath upgrades or other new amenities, additional leasable space, and our smart access solution.
Note: This table contains forward-looking statements. Please see the paragraph regarding forward-looking statements on page 2 of this document. Additionally, please refer to the following pages for definitions and reconciliations of all non-GAAP financial measures presented in this document.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230202005785/en/

Kim Callahan, 713-354-2549

Source: Camden Property Trust

FAQ

What was Camden Property Trust's EPS for Q4 2022?

The EPS for Q4 2022 was $0.42.

What dividend did Camden Property Trust declare for Q1 2023?

Camden declared a dividend of $1.00 per share payable on April 17, 2023.

How much liquidity does Camden Property Trust have?

Camden Property Trust has nearly $1.2 billion in liquidity.

What are Camden Property Trust's initial earnings guidance for Q1 2023?

The initial earnings guidance for Q1 2023 suggests an EPS range of $0.36 to $0.40.

How did Camden Property Trust's FFO change year-over-year?

FFO increased from $5.39 in 2021 to $6.59 in 2022.