Camden Property Trust Announces Third Quarter 2024 Operating Results
Camden Property Trust (NYSE:CPT) reported its Q3 2024 financial results, showing mixed performance. The company's Core FFO was $1.71 per share, exceeding guidance by $0.03, while EPS declined to ($0.04) from $0.44 year-over-year. Same-property revenues grew 0.6% year-over-year, but NOI remained flat. The company recorded $41.0 million in impairment charges related to four canceled predevelopment projects. Occupancy remained stable at 95.5%, while signed blended lease rates showed a slight increase of 0.1% in Q3. Camden updated its 2024 guidance, maintaining NOI growth projection at 0.75% while adjusting Core FFO guidance to $6.79-$6.83 per share.
Camden Property Trust (NYSE:CPT) ha riportato i risultati finanziari per il terzo trimestre del 2024, evidenziando una performance mista. L'FFO Core dell'azienda è stato di $1.71 per azione, superando le previsioni di $0.03, mentre l'EPS è diminuito a ($0.04) rispetto a $0.44 dell'anno precedente. I ricavi delle stesse proprietà sono cresciuti dello 0.6% rispetto all'anno precedente, ma il NOI è rimasto stabile. L'azienda ha registrato $41.0 milioni di oneri di riduzione di valore legati a quattro progetti di pre-sviluppo cancellati. L'Occupancy è rimasta stabile al 95.5%, mentre i tassi di locazione misti firmati hanno mostrato un leggero aumento dello 0.1% nel terzo trimestre. Camden ha aggiornato le previsioni per il 2024, mantenendo la proiezione di crescita del NOI al 0.75% e adattando le previsioni dell'FFO Core a $6.79-$6.83 per azione.
Camden Property Trust (NYSE:CPT) informó sus resultados financieros del tercer trimestre de 2024, mostrando un rendimiento mixto. El FFO Core de la compañía fue de $1.71 por acción, superando las proyecciones en $0.03, mientras que el EPS cayó a ($0.04) desde $0.44 interanual. Los ingresos de propiedades similares crecieron un 0.6% interanual, pero el NOI se mantuvo plano. La compañía registró $41.0 millones en cargos por deterioro relacionados con cuatro proyectos de predesarrollo cancelados. La ocupación se mantuvo estable en un 95.5%, mientras que las tasas de arrendamiento mixtas firmadas mostraron un ligero aumento del 0.1% en el tercer trimestre. Camden actualizó su guía para 2024, manteniendo la proyección de crecimiento del NOI en un 0.75% y ajustando la guía de FFO Core a $6.79-$6.83 por acción.
캠든 프로퍼티 트러스트 (NYSE:CPT)는 2024년 3분기 재무 결과를 발표하며 혼합 성과를 보여주었습니다. 회사의 Core FFO는 주당 $1.71로, 가이던스를 $0.03 초과했지만, EPS는 전년 대비 $0.44에서 ($0.04)로 감소했습니다. 동일 부동산 수익은 전년 대비 0.6% 증가했으나, NOI는 변동이 없었습니다. 회사는 네 개의 조기 개발 프로젝트 취소와 관련하여 $4100만의 자산 손상 차익을 기록했습니다. 점유율은 95.5%로 안정적이었고, 체결된 혼합 임대료는 3분기 동안 0.1%의 소폭 증가를 보였습니다. 캠든은 2024년 가이던스를 업데이트하며, NOI 성장 예측을 0.75%로 유지하면서 Core FFO 가이던스를 주당 $6.79-$6.83로 조정했습니다.
Camden Property Trust (NYSE:CPT) a publié ses résultats financiers pour le troisième trimestre 2024, montrant une performance mixte. Le Core FFO de l'entreprise s'élevait à 1,71 $ par action, dépassant les prévisions de 0,03 $, tandis que le bénéfice par action (EPS) est tombé à (-0,04 $) contre 0,44 $ l'année précédente. Les revenus des mêmes propriétés ont augmenté de 0,6 % d'une année sur l'autre, mais le NOI est resté stable. L'entreprise a enregistré 41,0 millions de dollars de charges de dépréciation liées à quatre projets de prédéveloppement annulés. Le taux d'occupation est resté stable à 95,5 %, tandis que les taux de location mixtes signés ont montré une légère augmentation de 0,1 % au troisième trimestre. Camden a mis à jour ses prévisions pour 2024, maintenant la projection de croissance du NOI à 0,75 %, tout en ajustant ses prévisions de Core FFO à 6,79 $-6,83 $ par action.
Camden Property Trust (NYSE:CPT) hat seine finanziellen Ergebnisse für das 3. Quartal 2024 berichtet und dabei eine gemischte Leistung gezeigt. Der Core FFO des Unternehmens betrug $1,71 pro Aktie und übertraf die Prognose um $0,03, während das EPS im Jahresvergleich von $0,44 auf ($0,04) fiel. Die Erlöse aus vergleichbaren Immobilien wuchsen im Jahresvergleich um 0,6%, während das NOI unverändert blieb. Das Unternehmen verbuchte 41 Millionen Dollar an Wertminderungen im Zusammenhang mit vier stornierten Vorentwicklungsprojekten. Die Belegung blieb mit 95,5% stabil, während die unterzeichneten gemischten Mietpreise im 3. Quartal einen leichten Anstieg von 0,1% zeigten. Camden hat seine Prognose für 2024 aktualisiert und die NOI-Wachstumsprognose bei 0,75% belassen, während die Prognose für den Core FFO auf $6,79-$6,83 pro Aktie angepasst wurde.
- Core FFO of $1.71 exceeded guidance by $0.03
- Same-property revenues increased by 0.6% year-over-year
- Maintained strong occupancy rate at 95.5%
- Substantial liquidity position of $1.1 billion
- EPS declined to ($0.04) from $0.44 year-over-year
- $41.0 million impairment charge for canceled development projects
- Flat NOI growth (0.0%) year-over-year
- Negative new lease rates at -2.8% in Q3 2024
- Reduced 2024 same-property revenue growth guidance to 1.30% from 1.50%
Insights
Camden Property Trust's Q3 results reveal concerning trends in the multifamily housing sector. Core FFO of
The most troubling signals come from October's preliminary leasing data, showing new lease rates declining by
The company's updated 2024 guidance reflects these challenges, with same-property revenue growth lowered to
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||
Per Diluted Share |
2024 |
2023 |
2024 |
2023 |
EPS(1) |
( |
|
|
|
FFO |
|
|
|
|
Core FFO |
|
|
|
|
Core AFFO |
|
|
|
|
|
Three Months Ended |
3Q24 Guidance |
3Q24 Guidance |
Per Diluted Share |
September 30, 2024 |
Midpoint |
Variance |
EPS(1) |
( |
|
( |
FFO |
|
|
|
Core FFO |
|
|
|
(1) For the three and nine months ended September 30, 2024, EPS included approximately |
During the quarter, Camden decided not to move forward at the present time with four predevelopment projects. These decisions were made as part of a strategic review taking into consideration the Company’s current portfolio concentrations and the overall operating environments in those markets or submarkets. The Company recognized a non-cash charge of approximately
|
Quarterly Growth |
Sequential Growth |
Year-To-Date Growth |
Same Property Results |
3Q24 vs. 3Q23 |
3Q24 vs. 2Q24 |
2024 vs. 2023 |
Revenues |
|
|
|
Expenses |
|
|
|
Net Operating Income ("NOI") |
|
(0.4)% |
|
Same Property Results |
3Q24 |
3Q23 |
2Q24 |
Occupancy |
|
|
|
For 2024, the Company defines same property communities as communities wholly-owned and stabilized since January 1, 2023, 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 2024* |
October 2023 |
3Q24 |
3Q23 |
Signed New Lease Rates |
(4.8)% |
(3.7)% |
(2.8)% |
|
Signed Renewal Rates |
|
|
|
|
Signed Blended Lease Rates |
(1.7)% |
(0.9)% |
|
|
New Lease and Renewal Data - Date Effective (2) |
October 2024* |
October 2023 |
3Q24 |
3Q23 |
Effective New Lease Rates |
(4.4)% |
(2.6)% |
(2.2)% |
|
Effective Renewal Rates |
|
|
|
|
Effective Blended Lease Rates |
(0.8)% |
|
|
|
*Preliminary data as of October 30, 2024 |
(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 Bad Debt |
October 2024* |
October 2023 |
3Q24 |
3Q23 |
Occupancy |
|
|
|
|
Bad Debt |
NA |
|
|
|
*Preliminary data as of October 30, 2024
Development Activity
During the quarter, leasing continued at Camden Woodmill Creek in
Development Communities - Construction Completed and Project in Lease-Up ($ in millions)
|
|
Total |
Total |
% Leased |
Community Name |
Location |
Homes |
Cost |
as of 10/30/2024 |
Camden Woodmill Creek |
|
189 |
|
|
Development Communities - Construction Ongoing ($ in millions)
|
|
Total |
Total |
% Leased |
Community Name |
Location |
Homes |
Estimated Cost |
as of 10/30/2024 |
Camden |
|
420 |
|
|
Camden Long Meadow Farms |
|
188 |
75.0 |
|
|
|
369 |
138.0 |
|
Camden |
|
420 |
163.0 |
|
Camden Blakeney |
|
349 |
154.0 |
|
Total |
|
1,746 |
|
|
Liquidity Analysis
As of September 30, 2024,
During the quarter,
Hurricane Impact
During the quarter, Hurricane Beryl impacted several of our multifamily communities in the
Earnings Guidance
|
4Q24 |
2024 |
2024 Midpoint |
||
Per Diluted Share |
Range |
Range |
Current |
Prior |
Change |
EPS |
|
|
|
|
|
FFO |
|
|
|
|
|
Core FFO(1) |
|
|
|
|
|
(1) The Company's 2024 core FFO guidance excludes approximately
|
|
2024 |
2024 Midpoint |
||
Same Property Growth Guidance |
|
Range |
Current |
Prior |
Change |
Revenues |
|
|
|
|
(0.20)% |
Expenses |
|
|
|
|
(0.55)% |
NOI |
|
|
|
|
|
Conference Call
Friday, November 1, 2024 at 10:00 AM CT
Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061; Passcode: 6652140
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
About
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.
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|
||||||||
OPERATING RESULTS |
|||||||||
(In thousands, except per share amounts) |
|||||||||
(Unaudited) |
|||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
OPERATING DATA |
|
|
|
|
|
||||
|
|
|
|
|
|
||||
Property revenues (a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Property expenses |
|
|
|
|
|
||||
Property operating and maintenance |
95,940 |
|
91,011 |
|
|
275,110 |
|
264,038 |
|
Real estate taxes |
47,420 |
|
49,094 |
|
|
145,684 |
|
148,345 |
|
Total property expenses |
143,360 |
|
140,105 |
|
|
420,794 |
|
412,383 |
|
|
|
|
|
|
|
||||
Non-property income |
|
|
|
|
|
||||
Fee and asset management |
1,707 |
|
1,077 |
|
|
5,597 |
|
2,373 |
|
Interest and other income |
1,076 |
|
64 |
|
|
4,442 |
|
557 |
|
Income/(loss) on deferred compensation plans |
8,248 |
|
(3,339 |
) |
|
15,140 |
|
5,417 |
|
Total non-property income |
11,031 |
|
(2,198 |
) |
|
25,179 |
|
8,347 |
|
|
|
|
|
|
|
||||
Other expenses |
|
|
|
|
|
||||
Property management |
9,817 |
|
7,891 |
|
|
29,057 |
|
24,939 |
|
Fee and asset management |
623 |
|
444 |
|
|
1,541 |
|
1,277 |
|
General and administrative |
18,845 |
|
15,543 |
|
|
53,692 |
|
46,762 |
|
Interest |
32,486 |
|
33,006 |
|
|
97,250 |
|
99,427 |
|
Depreciation and amortization |
145,844 |
|
144,359 |
|
|
436,540 |
|
429,857 |
|
Expense/(benefit) on deferred compensation plans |
8,248 |
|
(3,339 |
) |
|
15,140 |
|
5,417 |
|
Total other expenses |
215,863 |
|
197,904 |
|
|
633,220 |
|
607,679 |
|
|
|
|
|
|
|
||||
Impairment associated with land development activities |
(40,988 |
) |
— |
|
|
(40,988 |
) |
— |
|
Loss on early retirement of debt |
— |
|
— |
|
|
(921 |
) |
(2,513 |
) |
Gain on sale of operating property |
— |
|
— |
|
|
43,806 |
|
48,919 |
|
Income (loss) from continuing operations before income taxes |
(1,948 |
) |
50,571 |
|
|
130,585 |
|
189,131 |
|
Income tax expense |
(390 |
) |
(752 |
) |
|
(2,354 |
) |
(2,753 |
) |
Net income (loss) |
(2,338 |
) |
49,819 |
|
|
128,231 |
|
186,378 |
|
Less income allocated to non-controlling interests |
(1,866 |
) |
(1,856 |
) |
|
(5,629 |
) |
(5,399 |
) |
Net income (loss) attributable to common shareholders |
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|
|
|
|
|
||||
Net income (loss) |
( |
) |
|
|
|
|
|
|
|
Other comprehensive income (loss) |
|
|
|
|
|
||||
Unrealized gain on cash flow hedging activities |
— |
|
— |
|
|
85 |
|
— |
|
Reclassification of net loss on cash flow hedging activities, prior service cost and net loss on post retirement obligation |
358 |
|
358 |
|
|
1,808 |
|
1,075 |
|
Comprehensive income (loss) |
(1,980 |
) |
50,177 |
|
|
130,124 |
|
187,453 |
|
Less income allocated to non-controlling interests |
(1,866 |
) |
(1,856 |
) |
|
(5,629 |
) |
(5,399 |
) |
Comprehensive income (loss) attributable to common shareholders |
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
PER SHARE DATA |
|
|
|
|
|
||||
|
|
|
|
|
|
||||
Total earnings/(loss) per common share - basic |
( |
) |
|
|
|
|
|
|
|
Total earnings/(loss) per common share - diluted |
(0.04 |
) |
0.44 |
|
|
1.13 |
|
1.66 |
|
|
|
|
|
|
|
||||
Weighted average number of common shares outstanding: |
|
|
|
|
|
||||
Basic |
108,426 |
|
108,683 |
|
|
108,513 |
|
108,638 |
|
Diluted |
108,426 |
|
108,706 |
|
|
108,547 |
|
108,659 |
|
(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, 2024, we recognized |
|
|
Note: Please refer to the following pages for definitions and reconciliations of all non-GAAP financial measures presented in this document. |
|
|
|||||||||
FUNDS FROM OPERATIONS |
|||||||||
(In thousands, except per share and property data amounts) |
|||||||||
(Unaudited) |
|||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
FUNDS FROM OPERATIONS |
|
|
|
|
|
||||
|
|
|
|
|
|
||||
Net income (loss) attributable to common shareholders |
( |
) |
|
|
|
|
|
|
|
Real estate depreciation and amortization |
142,853 |
|
141,362 |
|
|
427,595 |
|
420,762 |
|
Income allocated to non-controlling interests |
1,866 |
|
1,856 |
|
|
5,629 |
|
5,399 |
|
Gain on sale of operating properties |
— |
|
— |
|
|
(43,806 |
) |
(48,919 |
) |
Impairment associated with land development activities |
40,988 |
|
— |
|
|
40,988 |
|
— |
|
Funds from operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Plus: Casualty-related expenses, net of (recoveries) |
2,833 |
|
(436 |
) |
|
2,769 |
|
503 |
|
Plus: Severance |
— |
|
— |
|
|
506 |
|
— |
|
Plus: Legal costs and settlements, net of recoveries |
1,301 |
|
— |
|
|
3,267 |
|
84 |
|
Plus: Loss on early retirement of debt |
— |
|
— |
|
|
921 |
|
2,513 |
|
Plus: Expensed development & other pursuit costs |
833 |
|
— |
|
|
1,493 |
|
471 |
|
Plus: Advocacy contributions |
1,653 |
|
— |
|
|
1,653 |
|
— |
|
Less: Miscellaneous (income)/expense |
— |
|
— |
|
|
— |
|
(364 |
) |
Core funds from operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: recurring capitalized expenditures (a) |
(25,676 |
) |
(26,554 |
) |
|
(77,296 |
) |
(65,167 |
) |
|
|
|
|
|
|
||||
Core adjusted funds from operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
PER SHARE DATA |
|
|
|
|
|
||||
Funds from operations - diluted |
|
|
|
|
|
|
|
|
|
Core funds from operations - diluted |
1.71 |
|
1.73 |
|
|
5.12 |
|
5.09 |
|
Core adjusted funds from operations - diluted |
1.48 |
|
1.49 |
|
|
4.42 |
|
4.50 |
|
Distributions declared per common share |
1.03 |
|
1.00 |
|
|
3.09 |
|
3.00 |
|
|
|
|
|
|
|
||||
Weighted average number of common shares outstanding: |
|
|
|
|
|
||||
FFO/Core FFO/Core AFFO - diluted |
110,082 |
|
110,301 |
|
|
110,141 |
|
110,255 |
|
|
|
|
|
|
|
||||
PROPERTY DATA |
|
|
|
|
|
||||
Total operating properties (end of period) (b) |
172 |
|
172 |
|
|
172 |
|
172 |
|
Total operating apartment homes in operating properties (end of period) (b) |
58,250 |
|
58,961 |
|
|
58,250 |
|
58,961 |
|
Total operating apartment homes (weighted average) |
58,453 |
|
59,153 |
|
|
58,344 |
|
59,010 |
|
|
|
(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. |
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||||||||||
BALANCE SHEETS |
||||||||||
(In thousands) |
||||||||||
(Unaudited) |
||||||||||
|
Sep 30,
|
Jun 30,
|
Mar 31,
|
Dec 31,
|
Sep 30,
|
|||||
ASSETS |
|
|
|
|
|
|||||
Real estate assets, at cost |
|
|
|
|
|
|||||
Land |
|
|
|
|
|
|
|
|
|
|
Buildings and improvements |
11,222,261 |
|
11,148,312 |
|
11,014,440 |
|
10,993,390 |
|
10,963,667 |
|
|
12,940,446 |
|
12,864,827 |
|
12,721,423 |
|
12,705,263 |
|
12,696,471 |
|
Accumulated depreciation |
(4,725,152 |
) |
(4,582,440 |
) |
(4,439,710 |
) |
(4,332,524 |
) |
(4,254,388 |
) |
Net operating real estate assets |
8,215,294 |
|
8,282,387 |
|
8,281,713 |
|
8,372,739 |
|
8,442,083 |
|
Properties under development and land |
418,209 |
|
439,758 |
|
477,481 |
|
486,864 |
|
499,761 |
|
Total real estate assets |
8,633,503 |
|
8,722,145 |
|
8,759,194 |
|
8,859,603 |
|
8,941,844 |
|
Accounts receivable – affiliates |
8,993 |
|
9,903 |
|
10,350 |
|
11,905 |
|
12,057 |
|
Other assets, net (a) |
262,339 |
|
245,625 |
|
233,137 |
|
244,182 |
|
237,594 |
|
Cash and cash equivalents |
31,234 |
|
93,932 |
|
92,693 |
|
259,686 |
|
14,600 |
|
Restricted cash |
11,112 |
|
7,969 |
|
8,230 |
|
8,361 |
|
8,369 |
|
Total assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
LIABILITIES AND EQUITY |
|
|
|
|
|
|||||
Liabilities |
|
|
|
|
|
|||||
Notes payable |
|
|
|
|
|
|||||
Unsecured |
|
|
|
|
|
|
|
|
|
|
Secured |
330,299 |
|
330,241 |
|
330,184 |
|
330,127 |
|
330,071 |
|
Accounts payable and accrued expenses |
221,880 |
|
212,247 |
|
213,896 |
|
222,599 |
|
211,759 |
|
Accrued real estate taxes |
131,693 |
|
90,702 |
|
46,612 |
|
96,517 |
|
128,794 |
|
Distributions payable |
113,505 |
|
113,506 |
|
113,556 |
|
110,427 |
|
110,463 |
|
Other liabilities (b) |
214,027 |
|
183,377 |
|
182,443 |
|
186,987 |
|
175,341 |
|
Total liabilities |
4,132,903 |
|
4,152,642 |
|
4,109,976 |
|
4,331,966 |
|
4,279,485 |
|
|
|
|
|
|
|
|||||
Equity |
|
|
|
|
|
|||||
Common shares of beneficial interest |
1,158 |
|
1,157 |
|
1,157 |
|
1,156 |
|
1,156 |
|
Additional paid-in capital |
5,927,477 |
|
5,924,608 |
|
5,919,851 |
|
5,914,868 |
|
5,911,627 |
|
Distributions in excess of net income attributable to common shareholders |
(826,725 |
) |
(710,633 |
) |
(641,663 |
) |
(613,651 |
) |
(727,117 |
) |
Treasury shares |
(359,989 |
) |
(359,975 |
) |
(356,880 |
) |
(320,364 |
) |
(320,702 |
) |
Accumulated other comprehensive income/(loss) (c) |
641 |
|
283 |
|
(78 |
) |
(1,252 |
) |
(699 |
) |
Total common equity |
4,742,562 |
|
4,855,440 |
|
4,922,387 |
|
4,980,757 |
|
4,864,265 |
|
Non-controlling interests |
71,716 |
|
71,492 |
|
71,241 |
|
71,014 |
|
70,714 |
|
Total equity |
4,814,278 |
|
4,926,932 |
|
4,993,628 |
|
5,051,771 |
|
4,934,979 |
|
Total liabilities and equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
|
||||||||||
|
|
|
|
|
|
|||||
(a) Includes net deferred charges of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(b) Includes deferred revenues of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(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. |
||||||||||
|
|
|
|
|
|
|||||
|
||
|
|
|
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.
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
Core FFO
Core FFO represents FFO as further adjusted for items not considered part of our core business operations. We consider Core FFO to be a helpful supplemental measure of operating performance as it excludes not only depreciation expense of real estate assets, but it also excludes certain items which by their nature are not comparable period over period and therefore tends to obscure actual operating performance. Our definition of Core FFO may differ from other REITs, and there can be no assurance our basis for computing this measure is comparable to other REITs.
Core Adjusted FFO
In addition to FFO & Core FFO, we compute Core Adjusted FFO ("Core AFFO") as a supplemental measure of operating performance. Core AFFO is calculated utilizing Core 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 Core FFO and Core AFFO is provided below:
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
Net income (loss) attributable to common shareholders |
( |
) |
|
|
|
|
|
|
|
Real estate depreciation and amortization |
142,853 |
|
141,362 |
|
|
427,595 |
|
420,762 |
|
Income allocated to non-controlling interests |
1,866 |
|
1,856 |
|
|
5,629 |
|
5,399 |
|
Gain on sale of operating properties |
— |
|
— |
|
|
(43,806 |
) |
(48,919 |
) |
Impairment associated with land development activities |
40,988 |
|
— |
|
|
40,988 |
|
— |
|
Funds from operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Plus: Casualty-related expenses, net of (recoveries) |
2,833 |
|
(436 |
) |
|
2,769 |
|
503 |
|
Plus: Severance |
— |
|
— |
|
|
506 |
|
— |
|
Plus: Legal costs and settlements, net of recoveries |
1,301 |
|
— |
|
|
3,267 |
|
84 |
|
Plus: Loss on early retirement of debt |
— |
|
— |
|
|
921 |
|
2,513 |
|
Plus: Expensed development & other pursuit costs |
833 |
|
— |
|
|
1,493 |
|
471 |
|
Plus: Advocacy contributions |
1,653 |
|
— |
|
|
1,653 |
|
— |
|
Less: Miscellaneous (income)/expense |
— |
|
— |
|
|
— |
|
(364 |
) |
Core funds from operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: recurring capitalized expenditures |
(25,676 |
) |
(26,554 |
) |
|
(77,296 |
) |
(65,167 |
) |
|
|
|
|
|
|
||||
Core adjusted funds from operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average number of common shares outstanding: |
|
|
|
|
|
||||
EPS diluted |
108,426 |
|
108,706 |
|
|
108,547 |
|
108,659 |
|
FFO/Core FFO/ Core AFFO diluted |
110,082 |
|
110,301 |
|
|
110,141 |
|
110,255 |
|
|
|||||||||
NON-GAAP FINANCIAL MEASURES |
|||||||||
DEFINITIONS & RECONCILIATIONS |
|||||||||
(In thousands, except per share amounts) |
|||||||||
(Unaudited) |
|||||||||
Reconciliation of FFO, Core FFO, and Core AFFO per share |
|||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
Total Earnings Per Common Share - Diluted |
( |
) |
|
|
|
|
|
|
|
Real estate depreciation and amortization |
1.30 |
|
1.27 |
|
|
3.87 |
|
3.79 |
|
Income allocated to non-controlling interests |
0.02 |
|
0.02 |
|
|
0.05 |
|
0.05 |
|
Gain on sale of operating property |
— |
|
— |
|
|
(0.40 |
) |
(0.44 |
) |
Impairment associated with land development activities |
0.37 |
|
— |
|
|
0.37 |
|
— |
|
FFO per common share - Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Plus: Casualty-related expenses, net of (recoveries) |
0.02 |
|
— |
|
|
0.03 |
|
— |
|
Plus: Severance |
— |
|
— |
|
|
— |
|
— |
|
Plus: Legal costs and settlements, net of recoveries |
0.01 |
|
— |
|
|
0.03 |
|
— |
|
Plus: Loss on early retirement of debt |
— |
|
— |
|
|
0.01 |
|
0.03 |
|
Plus: Expensed development & other pursuit costs |
0.01 |
|
— |
|
|
0.01 |
|
— |
|
Plus: Advocacy contributions |
0.02 |
|
— |
|
|
0.02 |
|
— |
|
Less: Miscellaneous (income)/expense |
— |
|
— |
|
|
— |
|
— |
|
Core FFO per common share - Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: recurring capitalized expenditures |
(0.23 |
) |
(0.24 |
) |
|
(0.70 |
) |
(0.59 |
) |
|
|
|
|
|
|
||||
Core AFFO per common share - Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expected FFO & Core FFO
Expected FFO and Core FFO is calculated in a method consistent with historical FFO and Core FFO, and is considered appropriate supplemental measures of expected operating performance when compared to expected earnings per common share (EPS). A reconciliation of the ranges provided for diluted EPS to expected FFO and expected Core FFO per diluted share is provided below:
|
4Q24 |
|
Range |
|
2024 |
|
Range |
|
|
Low |
|
High |
|
Low |
|
High |
|
Expected earnings per common share - diluted |
|
|
|
|
|
|
|
|
Expected real estate depreciation and amortization |
1.29 |
1.29 |
|
5.17 |
|
5.17 |
|
|
Expected income allocated to non-controlling interests |
0.02 |
0.02 |
|
0.07 |
|
0.07 |
|
|
Expected (gain) on sale of operating properties |
— |
— |
|
(0.40 |
) |
(0.40 |
) |
|
Impairment associated with land development activities |
— |
— |
|
0.37 |
|
0.37 |
|
|
Expected FFO per share - diluted |
|
|
|
|
|
|
|
|
Anticipated Adjustments to FFO |
0.03 |
0.03 |
|
0.12 |
|
0.12 |
|
|
Expected Core FFO per share - diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Note: This table contains forward-looking statements. Please see paragraph regarding forward-looking statements earlier in this document. |
||||||||
|
||
|
|
NON-GAAP FINANCIAL MEASURES |
|
|
DEFINITIONS & RECONCILIATIONS |
|
|
(In thousands, except per share amounts) |
(Unaudited) |
||
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. Our definition of NOI 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 net income to net operating income is provided below:
|
Three months ended September 30, |
|
Nine months ended September 30, |
||||||
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
Net income (loss) |
( |
) |
|
|
|
|
|
|
|
Less: Fee and asset management income |
(1,707 |
) |
(1,077 |
) |
|
(5,597 |
) |
(2,373 |
) |
Less: Interest and other income |
(1,076 |
) |
(64 |
) |
|
(4,442 |
) |
(557 |
) |
Less: Income/(loss) on deferred compensation plans |
(8,248 |
) |
3,339 |
|
|
(15,140 |
) |
(5,417 |
) |
Plus: Property management expense |
9,817 |
|
7,891 |
|
|
29,057 |
|
24,939 |
|
Plus: Fee and asset management expense |
623 |
|
444 |
|
|
1,541 |
|
1,277 |
|
Plus: General and administrative expense |
18,845 |
|
15,543 |
|
|
53,692 |
|
46,762 |
|
Plus: Interest expense |
32,486 |
|
33,006 |
|
|
97,250 |
|
99,427 |
|
Plus: Depreciation and amortization expense |
145,844 |
|
144,359 |
|
|
436,540 |
|
429,857 |
|
Plus: Expense/(benefit) on deferred compensation plans |
8,248 |
|
(3,339 |
) |
|
15,140 |
|
5,417 |
|
Plus: Impairment associated with land development activities |
40,988 |
|
— |
|
|
40,988 |
|
— |
|
Plus: Loss on early retirement of debt |
— |
|
— |
|
|
921 |
|
2,513 |
|
Less: Gain on sale of operating property |
— |
|
— |
|
|
(43,806 |
) |
(48,919 |
) |
Plus: Income tax expense |
390 |
|
752 |
|
|
2,354 |
|
2,753 |
|
NOI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
"Same Property" Communities |
|
|
|
|
|
|
|
|
|
Non-"Same Property" Communities |
9,053 |
|
8,157 |
|
|
27,131 |
|
21,451 |
|
Development and Lease-Up Communities |
1,474 |
|
(12 |
) |
|
1,925 |
|
(19 |
) |
Disposition/Other |
(1,245 |
) |
7,880 |
|
|
2,968 |
|
23,149 |
|
NOI |
|
|
|
|
|
|
|
|
|
|
||
|
|
NON-GAAP FINANCIAL MEASURES |
|
|
DEFINITIONS & RECONCILIATIONS |
|
|
(In thousands, except per share amounts) |
|
|
|
(Unaudited) |
||
EBITDAre and Adjusted EBITDAre
Earnings Before Interest, Taxes, Depreciation, and Amortization for Real Estate (“EBITDAre”) and Adjusted EBITDAre are supplemental measures of our financial performance. EBITDAre is calculated in accordance with the definition adopted by NAREIT as earnings before interest, taxes, depreciation and amortization plus or minus losses and gains from the sale of certain real estate assets, including gains/losses on change of control, plus impairment write‐downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, and adjustments to reflect the Company’s share of EBITDAre of unconsolidated joint ventures.
Adjusted EBITDAre represents EBITDAre as further adjusted for non-core items. The Company considers EBITDAre and Adjusted EBITDAre to be appropriate supplemental measures of operating performance to net income because it represents income before non-cash depreciation and the cost of debt, and excludes gains or losses from property dispositions, and impairment write-downs of certain real estate assets. Annualized Adjusted EBITDAre is Adjusted EBITDAre as reported for the period multiplied by 4 for quarter results or 1.33 for 9 month results. A reconciliation of net income to EBITDAre and adjusted EBITDAre is provided below:
|
Three months ended September 30, |
|
Nine months ended September 30, |
||||||
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
Net income (loss) |
( |
) |
|
|
|
|
|
|
|
Plus: Interest expense |
32,486 |
|
33,006 |
|
|
97,250 |
|
99,427 |
|
Plus: Depreciation and amortization expense |
145,844 |
|
144,359 |
|
|
436,540 |
|
429,857 |
|
Plus: Income tax expense |
390 |
|
752 |
|
|
2,354 |
|
2,753 |
|
Less: Gain on sale of operating property |
— |
|
— |
|
|
(43,806 |
) |
(48,919 |
) |
Plus: Impairment associated with land development activities |
40,988 |
|
— |
|
|
40,988 |
|
— |
|
EBITDAre |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Plus: Casualty-related expenses, net of (recoveries) |
2,833 |
|
(436 |
) |
|
2,769 |
|
503 |
|
Plus: Severance |
— |
|
— |
|
|
506 |
|
— |
|
Plus: Legal costs and settlements, net of recoveries |
1,301 |
|
— |
|
|
3,267 |
|
84 |
|
Plus: Loss on early retirement of debt |
— |
|
— |
|
|
921 |
|
2,513 |
|
Plus: Expensed development & other pursuit costs |
833 |
|
— |
|
|
1,493 |
|
471 |
|
Plus: Advocacy contributions |
1,653 |
|
— |
|
|
1,653 |
|
— |
|
Less: Miscellaneous (income)/expense |
— |
|
— |
|
|
— |
|
(364 |
) |
Adjusted EBITDAre |
|
|
|
|
|
|
|
|
|
Annualized Adjusted EBITDAre |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net Debt to Annualized Adjusted EBITDAre
The Company believes Net Debt to Annualized Adjusted EBITDAre 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 EBITDAre for the following periods:
Net Debt:
|
Average monthly balance for the |
|
Average monthly balance for the |
||||||
|
Three months ended September 30, |
|
Nine months ended September 30, |
||||||
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
Unsecured notes payable |
|
|
|
|
|
|
|
|
|
Secured notes payable |
330,280 |
|
330,052 |
|
|
330,222 |
|
412,290 |
|
Total debt |
3,523,645 |
|
3,704,228 |
|
|
3,549,946 |
|
3,748,330 |
|
Less: Cash and cash equivalents |
(43,414 |
) |
(8,338 |
) |
|
(54,702 |
) |
(8,546 |
) |
Net debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
||||
Net Debt to Annualized Adjusted EBITDAre:
|
Three months ended September 30, |
|
Nine months ended September 30, |
||||||
|
2024 |
2023 |
|
2024 |
2023 |
||||
Net debt |
|
|
|
|
|
||||
Annualized Adjusted EBITDAre |
895,960 |
910,000 |
|
896,221 |
896,937 |
||||
Net Debt to Annualized Adjusted EBITDAre |
3.9x |
4.1x |
|
3.9x |
4.2x |
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241031665810/en/
Kim Callahan, 713-354-2549
Source: Camden Property Trust
FAQ
What was Camden Property Trust's (CPT) Core FFO per share in Q3 2024?
How much was CPT's impairment charge in Q3 2024?
What is Camden Property Trust's (CPT) occupancy rate for Q3 2024?
What is CPT's updated Core FFO guidance for full-year 2024?
