Camden Property Trust Announces First Quarter 2021 Operating Results

Rhea-AI Summary

Camden Property Trust (NYSE:CPT) reported its operating results for Q1 2021, showing a decrease in EPS ($0.31 vs. $0.43 in Q1 2020) and FFO ($1.24 vs. $1.35). Revenue fell by 0.4% year-over-year with a 5.4% rise in expenses. Occupancy remained stable at 96.0%. April 2021 rent collections improved to 98.0% compared to 94.3% in April 2020. The company has approximately $1.2 billion in liquidity and updated its 2021 earnings guidance, forecasting EPS of $0.84 to $1.14 and FFO of $4.94 to $5.24. A conference call is scheduled for April 30, 2021.

Positive

• April 2021 collections improved to 98.0%, up from 94.3% in April 2020.
• Camden has $1.2 billion in liquidity, providing financial stability.
• No debt maturities until 2022, reducing immediate financial pressure.
• Construction commenced at Camden Durham, adding to future growth potential.

Negative

• EPS declined from $0.43 in Q1 2020 to $0.31 in Q1 2021.
• FFO also decreased from $1.35 to $1.24 year-over-year.
• Expenses rose 5.4%, impacting net operating income (NOI), which fell by 3.5%.

Camden Property Trust (NYSE:CPT) (the "Company") announced today operating results for the three months ended March 31, 2021. Net Income Attributable to Common Shareholders (“EPS”), Funds from Operations (“FFO”), and Adjusted Funds from Operations (“AFFO”) for the three months ended March 31, 2021 are detailed below. A reconciliation of EPS to FFO is included in the financial tables accompanying this press release.

		Three Months Ended
		March 31
Per Diluted Share		2021		2020
EPS		$0.31		$0.43
FFO		$1.24		$1.35
AFFO		$1.12		$1.20
		Quarterly Growth		Sequential Growth
Same Property Results		1Q21 vs. 1Q20		1Q21 vs. 4Q20
Revenues		(0.4)%		0.1%
Expenses		5.4%		0.3%
Net Operating Income ("NOI")		(3.5)%		0.1%

Same Property Results	1Q21	1Q20	4Q20
Occupancy	96.0%	96.0%	95.5%

For 2021, the Company defines same property communities as communities owned and stabilized since January 1, 2020, 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.

April Collections

Same Property Scheduled Rents*	April 2021	April 2020	1Q21	1Q20
Collected	98.0%	94.3%	98.4%	97.9%
Deferred/Payment Plan Arranged	—%	2.5%	—%	—%
Delinquent	2.0%	3.2%	1.6%	2.1%
*Rent is recognized as earned. The Company evaluates collectability on an ongoing basis and any accounts considered uncollectable are recorded against property revenues.

Operating Statistics - Same Property Portfolio

New Lease and Renewal Data - Date Signed (1) (2)	April 2021*	April 2020	1Q21(2)	1Q20(2)
New Lease Rates	4.5%	(2.5)%	(0.8)%	0.4%
Renewal Rates	4.7%	0.1%	3.4%	4.3%
Blended Rates	4.6%	(0.8)%	1.2%	2.5%
New Leases	1,692	1,366	1,734	1,529
Renewals	1,590	2,568	1,604	1,768
Total Leases	3,282	3,934	3,338	3,297

New Lease and Renewal Data - Date Effective (3) (4)	April 2021*	April 2020	1Q21(4)	1Q20(4)
New Lease Rates	1.7%	(1.4)%	(2.2)%	0.2%
Renewal Rates	3.1%	4.4%	2.9%	4.8%
Blended Rates	2.4%	2.1%	0.2%	2.4%
New Leases	1,456	1,124	1,539	1,463
Renewals	1,464	1,720	1,378	1,405
Total Leases	2,920	2,844	2,917	2,868
*Data as of April 26, 2021
(1) Average change in same property new lease and renewal rates vs. expiring lease rates when signed.
(2) Data represents average monthly leases signed during the period.
(3) Average change in same property new lease and renewal rates vs. expiring lease rates when effective.
(4) Data represents average monthly leases effective during the period.

Occupancy and Turnover Data	April 2021*	April 2020	1Q21	1Q20
Occupancy	96.6%	95.5%	96.0%	96.0%
Annualized Gross Turnover	47%	47%	45%	46%
Annualized Net Turnover	37%	37%	35%	37%
*Data as of April 26, 2021

Development Activity

During the quarter, construction commenced at Camden Durham in Durham, NC, and leasing began at two communities: Camden Lake Eola in Orlando, FL, and Camden Buckhead in Atlanta, GA. Subsequent to quarter-end, leasing began at Camden Hillcrest in San Diego, CA.

Development Communities - Construction Completed and Projects in Lease-Up ($ in millions)

		Total	Total	% Leased
Community Name	Location	Homes	Cost	as of 4/26/2021
Camden Downtown I	Houston, TX	271	$131.5	72 %
Camden RiNo	Denver, CO	233	78.9	96 %
Camden Cypress Creek II (JV)	Cypress, TX	234	31.9	87 %
Total		738	$242.3

Development Communities - Construction Ongoing ($ in millions)

		Total		Total	% Leased
Community Name	Location	Homes		Estimated Cost	as of 4/26/2021
Camden North End II	Phoenix, AZ	343		$90.0	48 %
Camden Lake Eola	Orlando, FL	360		125.0	11 %
Camden Buckhead	Atlanta, GA	366		160.0	15 %
Camden Hillcrest	San Diego, CA	132		95.0	3 %
Camden Atlantic	Plantation, FL	269		100.0
Camden Tempe II	Tempe, AZ	397		115.0
Camden NoDa	Charlotte, NC	387		105.0
Camden Durham	Durham, NC	354		120.0
Total		2,608		$910.0

Liquidity Analysis

As of March 31, 2021, Camden had approximately $1.2 billion of liquidity comprised of approximately $333 million in cash and cash equivalents and no amounts outstanding on its $900 million unsecured credit facility. The Company has no scheduled debt maturities until 2022, and at quarter-end had $358 million left to fund under its existing wholly-owned development pipeline. As of March 31, 2021, Camden had outstanding letters of credit totaling approximately $12 million, which reduced the availability under its unsecured credit facility to $888 million.

Earnings Guidance

Camden updated its earnings guidance for 2021 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for second quarter 2021 as detailed below.

	2Q21	2021	2021 Midpoint
Per Diluted Share	Range	Range	Current	Prior	Change
EPS	$0.25 - $0.31	$0.84 - $1.14	$0.99	$0.91	$0.08
FFO	$1.22 - $1.28	$4.94 - $5.24	$5.09	$5.00	$0.09
		2021	2021 Midpoint
Same Property Growth		Range	Current	Prior	Change
Revenues		0.85% - 2.35%	1.60%	0.75%	0.85%
Expenses		3.50% - 4.30%	3.90%	3.50%	0.40%
NOI		(1.10)% - 1.60%	0.25%	(0.85)%	1.10%

Camden intends to update its earnings guidance to the market on a quarterly basis. Additional information on the Company’s 2021 financial outlook and a reconciliation of expected EPS to expected FFO are included in the financial tables accompanying this press release.

Conference Call

Friday, April 30, 2021 at 10:00 AM CT
Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061
Passcode: 4025578
Webcast: https://services.choruscall.com/links/cpt210430.html

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 400 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 167 properties containing 56,851 apartment homes across the United States. Upon completion of 8 properties currently under development, the Company’s portfolio will increase to 59,459 apartment homes in 175 properties. Camden has been recognized as one of the 100 Best Companies to Work For® by FORTUNE magazine for 14 consecutive years, most recently ranking #8. The Company also received a Glassdoor Employees' Choice Award in 2020, ranking #25 for large U.S. companies.

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 March 31,
	2021		2020
OPERATING DATA
Property revenues (a)	$267,568		$265,879
Property expenses
Property operating and maintenance	63,479		59,956
Real estate taxes	37,453		34,180
Total property expenses	100,932		94,136
Non-property income
Fee and asset management	2,206		2,527
Interest and other income	332		329
Income/(loss) on deferred compensation plans	3,626		(14,860	)
Total non-property income	6,164		(12,004	)
Other expenses
Property management	6,124		6,527
Fee and asset management	1,132		843
General and administrative	14,222		13,233
Interest	23,644		19,707
Depreciation and amortization	93,141		91,859
Expense/(benefit) on deferred compensation plans	3,626		(14,860	)
Total other expenses	141,889		117,309
Gain on sale of land	—		382
Equity in income of joint ventures	1,914		2,122
Income from continuing operations before income taxes	32,825		44,934
Income tax expense	(352	)	(467	)
Net income	32,473		44,467
Less income allocated to non-controlling interests	(1,126	)	(1,183	)
Net income attributable to common shareholders	$31,347		$43,284
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$32,473		$44,467
Other comprehensive income
Reclassification of net loss on cash flow hedging activities, prior service cost and net loss on post retirement obligation	373		366
Comprehensive income	32,846		44,833
Less income allocated to non-controlling interests	(1,126	)	(1,183	)
Comprehensive income attributable to common shareholders	$31,720		$43,650
PER SHARE DATA
Total earnings per common share - basic	$0.31		$0.43
Total earnings per common share - diluted	0.31		0.43
Weighted average number of common shares outstanding:
Basic	99,547		99,298
Diluted	99,621		99,380

(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 March 31, 2021, we recognized $267.6 million of property revenue which consisted of approximately $235.8 million of rental revenue and approximately $31.8 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 $265.9 million recognized for the three months ended March 31, 2020, made up of approximately $236.6 million of rental revenue and approximately $29.3 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 $7.7 million and $6.9 million for the three months ended March 31, 2021 and 2020, respectively.
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 March 31,
	2021		2020
FUNDS FROM OPERATIONS
Net income attributable to common shareholders	$31,347		$43,284
Real estate depreciation and amortization	90,707		89,511
Adjustments for unconsolidated joint ventures	2,599		2,242
Income allocated to non-controlling interests	1,126		1,282
Funds from operations	$125,779		$136,319
Less: recurring capitalized expenditures (a)	(12,680	)	(14,825	)
Adjusted funds from operations	$113,099		$121,494
PER SHARE DATA
Funds from operations - diluted	$1.24		$1.35
Adjusted funds from operations - diluted	1.12		1.20
Distributions declared per common share	0.83		0.83
Weighted average number of common shares outstanding:
FFO/AFFO - diluted	101,341		101,128
PROPERTY DATA
Total operating properties (end of period) (b)	167		164
Total operating apartment homes in operating properties (end of period) (b)	56,851		56,112
Total operating apartment homes (weighted average)	49,439		49,017

(a)		Capital expenditures necessary to help preserve the value of and maintain the functionality at our communities.
(b)		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)
	Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020
ASSETS
Real estate assets, at cost
Land	$1,233,937			$1,225,214			$1,216,942			$1,206,656			$1,206,130
Buildings and improvements	7,863,707			7,763,748			7,677,676			7,597,165			7,547,150
	9,097,644			8,988,962			8,894,618			8,803,821			8,753,280
Accumulated depreciation	(3,124,504	)		(3,034,186	)		(2,944,769	)		(2,857,124	)		(2,770,848	)
Net operating real estate assets	5,973,140			5,954,776			5,949,849			5,946,697			5,982,432
Properties under development, including land	541,958			564,215			522,664			514,336			467,288
Investments in joint ventures	18,800			18,994			20,992			21,735			22,318
Total real estate assets	6,533,898			6,537,985			6,493,505			6,482,768			6,472,038
Accounts receivable – affiliates	19,502			20,158			20,152			21,432			20,344
Other assets, net (a)	213,126			216,276			217,534			211,823			196,544
Cash and cash equivalents	333,402			420,441			589,614			601,584			22,277
Restricted cash	4,105			4,092			3,918			4,093			4,367
Total assets	$7,104,033			$7,198,952			$7,324,723			$7,321,700			$6,715,570
LIABILITIES AND EQUITY
Liabilities
Notes payable
Unsecured	$3,167,557			$3,166,625			$3,225,799			$3,224,871			$2,606,876
Accounts payable and accrued expenses	159,111			175,608			183,654			167,453			156,841
Accrued real estate taxes	33,155			66,156			87,159			62,499			32,365
Distributions payable	84,282			84,147			84,137			84,138			84,112
Other liabilities (b)	185,852			189,829			177,967			172,172			164,052
Total liabilities	3,629,957			3,682,365			3,758,716			3,711,133			3,044,246
Equity
Common shares of beneficial interest	1,070			1,069			1,068			1,068			1,069
Additional paid-in capital	4,588,056			4,581,710			4,577,813			4,574,387			4,569,995
Distributions in excess of net income attributable to common shareholders	(842,628	)		(791,079	)		(737,556	)		(689,809	)		(623,570	)
Treasury shares	(335,511	)		(341,412	)		(341,831	)		(341,637	)		(342,778	)
Accumulated other comprehensive income (loss) (c)	(5,010	)		(5,383	)		(5,431	)		(5,797	)		(6,163	)
Total common equity	3,405,977			3,444,905			3,494,063			3,538,212			3,598,553
Non-controlling interests	68,099			71,682			71,944			72,355			72,771
Total equity	3,474,076			3,516,587			3,566,007			3,610,567			3,671,324
Total liabilities and equity	$7,104,033			$7,198,952			$7,324,723			$7,321,700			$6,715,570
(a) Includes net deferred charges of:	$2,031			$2,299			$2,686			$3,031			$3,399
(b) Includes deferred revenues of:	$256			$284			$314			$344			$375
(c) Represents the unrealized net loss and unamortized prior service costs on post retirement obligations, and unrealized net gain (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 March 31,
	2021			2020
Net income attributable to common shareholders	$31,347			$43,284
Real estate depreciation and amortization	90,707			89,511
Adjustments for unconsolidated joint ventures	2,599			2,242
Income allocated to non-controlling interests	1,126			1,282
Funds from operations	$125,779			$136,319
Less: recurring capitalized expenditures	(12,680	)		(14,825	)
Adjusted funds from operations	$113,099			$121,494
Weighted average number of common shares outstanding:
EPS diluted	99,621			99,380
FFO/AFFO diluted	101,341			101,128
	Three Months Ended March 31,
	2021			2020
Total Earnings Per Common Share - Diluted	$0.31			$0.43
Real estate depreciation and amortization	0.89			0.89
Adjustments for unconsolidated joint ventures	0.03			0.02
Income allocated to non-controlling interests	0.01			0.01
FFO per common share - Diluted	$1.24			$1.35
Less: recurring capitalized expenditures	(0.12	)		(0.15	)
AFFO per common share - Diluted	$1.12			$1.20

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, on properties not currently held for sale 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:

	2Q21 Range					2021 Range
	Low		High			Low		High
Expected earnings per common share - diluted	$0.25		$0.31			$0.84		$1.14
Expected real estate depreciation and amortization	0.93		0.93			3.95		3.95
Expected adjustments for unconsolidated joint ventures	0.03		0.03

FAQ

What are the Q1 2021 earnings results for Camden Property Trust (CPT)?

Camden Property Trust reported Q1 2021 EPS of $0.31, FFO of $1.24, and an AFFO of $1.12.

How did Camden Property Trust's occupancy rates change in Q1 2021?

Occupancy remained unchanged at 96.0% in Q1 2021, compared to the same period last year.

What is Camden Property Trust's liquidity position as of March 31, 2021?

The company has approximately $1.2 billion in liquidity, including $333 million in cash.

What guidance did Camden Property Trust provide for 2021?

Camden updated its EPS guidance for 2021 to a range of $0.84 to $1.14 and FFO of $4.94 to $5.24.

When is the next conference call for Camden Property Trust (CPT)?

The next conference call is scheduled for April 30, 2021, at 10:00 AM CT.