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Press Release: Camden Property Trust Announces -4-

· 02/04/2021 16:15
1Q21 Range 2021 Range ------ ------ ----- -------- Low High Low High ------ ------ ----- -------- Expected earnings per common share - diluted $0.27 $0.33 $0.71 $1.11 Expected real estate depreciation and amortization 0.89 0.89 3.94 3.94 Expected adjustments for unconsolidated joint ventures 0.03 0.03 0.10 0.10 Expected income allocated to non-controlling interests 0.01 0.01 0.05 0.05 ------ ------ ----- ------ Expected FFO per share - diluted $1.20 $1.26 $4.80 $5.20 ------ ------ ----- ------ Note: This table contains forward-looking statements. Please see paragraph regarding forward-looking statements earlier in this document.CAMDEN NON-GAAP FINANCIAL MEASURES DEFINITIONS & RECONCILIATIONS (In thousands, except per share amounts) (Unaudited)Three Months Ended Twelve Months Ended December 31, December 31, ------------------------- -------------------------- 2020 2019 2020 2019 ------------- ---------- ------------ ------------ Net income attributable to common shareholders (a) $29,193 $95,014 $123,911 $219,623 Real estate depreciation and amortization 89,504 83,137 357,489 328,045 Adjustments for unconsolidated joint ventures 2,550 2,251 9,483 8,987 Income allocated to non-controlling interests 1,188 1,289 4,849 4,838 Gain on sale of operating properties, net of tax -- (49,901) -- (49,901) Gain on sale of unconsolidated joint venture property, net of tax -- (6,204) -- (6,204) --------- --------- -------- --------- Funds from operations $122,435 $125,586 $495,732 $505,388 --------- --------- -------- --------- Less: recurring capitalized expenditures (21,619) (21,109) (77,525) (72,172) Adjusted funds from operations $100,816 $104,477 $418,207 $433,216 ========= ========= ======== ========= Weighted average number of common shares outstanding: EPS diluted 99,507 100,932 99,438 99,384 FFO/AFFO diluted 101,255 100,932 101,186 100,332 Three Months Ended Twelve Months Ended December 31, December 31, ------------------------- -------------------------- 2020 2019 2020 2019 --------- --------- -------- --------- Total Earnings Per Common Share - Diluted $0.29 $0.95 $1.24 $2.22 Real estate depreciation and amortization 0.88 0.82 3.53 3.27 Adjustments for unconsolidated joint ventures 0.03 0.02 0.09 0.08 Income allocated to non-controlling interests 0.01 -- 0.04 0.03 Gain on sale of operating properties, net of tax -- (0.49) -- (0.50) Gain on sale of unconsolidated joint venture property, net of tax -- (0.06) -- (0.06) --------- --------- -------- --------- FFO per common share - Diluted $1.21 $1.24 $4.90 $5.04 --------- --------- -------- --------- Less: recurring capitalized expenditures (0.21) (0.20) (0.77) (0.72) AFFO per common share - Diluted $1.00 $1.04 $4.13 $4.32 ========= ========= ======== =========revenues of: $284 $314 $344 $375 $408 (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:

(a) Net income attributable to common shareholders was negatively impacted for the three and twelve months ended December 31, 2020 by an approximate $3.5 million non-cash adjustment to retail straight-line rent receivables. Net income attributable to common shareholders was also negatively impacted for the twelve months ended December 31, 2020 by approximately $14.8 million of COVID-19 Related Impact. The COVID-19 Related Impact for the twelve months ended December 31, 2020 was comprised of $9.5 million related to the Resident Relief Funds, which were established in April 2020. Of this amount, approximately $9.1 million was paid to residents at our wholly-owned communities and was recorded as a reduction of property revenues, and approximately $1.3 million of Resident Relief Funds paid to residents of the operating communities owned by our unconsolidated joint ventures, of which, we recognized our ownership interest of $0.4 million in equity in income of joint ventures. Additionally, we incurred approximately $4.5 million of COVID-19 expenses at our operating communities during the second and third quarters of 2020, which included $2.8 million of bonuses paid to on-site employees who provided essential services during the pandemic and $1.7 million in other directly-related COVID-19 expenses for the twelve months ended December 31, 2020. We also incurred approximately $0.8 million related to the Employee Relief Fund we established to help our employees impacted by COVID-19 for the twelve months ended December 31, 2020.

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:

Net Operating Income (NOI)

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February 04, 2021 16:15 ET (21:15 GMT)