Camden property trust announces 2021 operating results, 2022 financial outlook, and first quarter 2022 dividend
Houston--(business wire)--camden property trust (nyse:cpt) (the "company") announced today operating results for the three and twelve months ended december 31, 2021. 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, 2021 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 2021 2020 2021 2020 eps $2.02 $0.29 $2.96 $1.24 ffo $1.51 $1.21 $5.39 $4.90 affo $1.30 $1.00 $4.68 $4.13 quarterly growth sequential growth year-to-date growth same property results* 4q21 vs. 4q20 4q21 vs. 3q21 2021 vs. 2020 revenues 8.5% 2.5% 4.3% expenses (2.3)% (7.5)% 3.5% net operating income ("noi") 14.9% 8.4% 4.8% *same property results exclude any pandemic related impact. same property results 4q21 4q20 3q21 occupancy 97.1% 95.5% 97.3% 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. operating statistics - same property portfolio new lease and renewal data - date signed (1) (2) january 2022* january 2021 4q21(2) 4q20(2) new lease rates 17.1% (3.1)% 16.7% (4.0)% renewal rates 13.5% 3.0% 14.1% 2.9% blended rates 15.2% (0.2)% 15.5% (0.9)% new leases 1,311 1,646 1,287 1,398 renewals 1,472 1,546 1,163 1,145 total leases 2,783 3,192 2,450 2,543 new lease and renewal data - date effective (3) (4) january 2022* january 2021 4q21(4) 4q20(4) new lease rates 16.7% (3.4)% 17.8% (4.3)% renewal rates 14.8% 2.9% 13.6% 2.5% blended rates 15.7% (1.0)% 15.7% (1.3)% new leases 1,338 1,569 1,379 1,519 renewals 1,300 973 1,295 1,163 total leases 2,638 2,542 2,674 2,682 *data as of january 30, 2022 (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 january 2022* january 2021 4q21 4q20 occupancy 97.2% 95.7% 97.1% 95.5% annualized gross turnover 36% 47% 42% 47% annualized net turnover 32% 39% 38% 40% *data as of january 30, 2022 development activity during the quarter, construction was completed at camden hillcrest in san diego, ca and lease-up was completed at camden north end 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 1/30/2022 camden lake eola orlando, fl 360 $125.0 96% camden hillcrest san diego, ca 132 89.3 41% total 492 $214.3 development communities - construction ongoing ($ in millions) total total % leased community name location homes estimated cost as of 1/30/2022 camden buckhead atlanta, ga 366 $163.5 65% 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 1,773 $603.5 acquisition/disposition activity during the quarter, the company acquired camden greenville, a 558-home apartment community located in dallas, tx for approximately $165.5 million. during the quarter, camden also acquired a 5.2-acre land parcel in denver, co and a 2.0-acre land parcel in nashville, tn for approximately $60.6 million for future development purposes. the company disposed of three operating communities during the quarter for approximately $260.0 million. two of the communities sold were located in houston, tx and one in laurel, md and included 1,078 total apartment homes. equity issuance during the quarter, the company issued approximately 1.1 million common shares through its at-the-market (“atm”) share offering program at an average price of $167.56 per share, for total net consideration of approximately $179.7 million. liquidity analysis as of december 31, 2021, camden had approximately $1.5 billion of liquidity comprised of approximately $613.4 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 3q22, and at quarter-end had $199.4 million left to fund under its existing wholly-owned development pipeline. as of december 31, 2021, camden had outstanding letters of credit totaling approximately $14.8 million, which reduced the availability under its unsecured credit facility to $885.2 million. earnings guidance camden provided initial earnings guidance for 2022 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for first quarter 2022 as detailed below. 1q22 2022 per diluted share range range midpoint eps $0.38 - $0.42 $1.65 - $1.95 $1.80 ffo $1.45 - $1.49 $6.09 - $6.39 $6.24 2022 same property growth range midpoint revenues 7.75% - 9.75% 8.75% expenses 2.25% - 3.75% 3.00% noi 10.50% - 13.50% 12.00% for 2022, the company defines same property communities as communities owned and stabilized since january 1, 2021, excluding communities under redevelopment and properties held for sale. the company defines properties under redevelopment as communities with capital expenditures that improve a community's cash flow and competitive position, through extensive unit, exterior building, common area, and amenity upgrades. camden intends to update its earnings guidance to the market on a quarterly basis. additional information on the company’s 2022 financial outlook and a reconciliation of expected eps to expected ffo are included in the financial tables accompanying this press release. quarterly dividend declaration camden's board of trust managers declared a first quarter 2022 dividend of $0.94 per common share. the dividend is payable on april 18, 2022 to shareholders of record as of march 31, 2022. 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 4, 2022 at 10:00 am ct domestic dial-in number: (888) 317-6003; international dial-in number: (412) 317-6061 passcode: 1838681 webcast: https://services.choruscall.com/mediaframe/webcast.html?webcastid=amgiqn3x 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 171 properties containing 58,300 apartment homes across the united states. upon completion of 5 properties currently under development, the company’s portfolio will increase to 60,073 apartment homes in 176 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. 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, 2021 2020 2021 2020 operating data property revenues (a) $305,364 $261,554 $1,143,585 $1,043,837 property expenses property operating and maintenance 67,343 62,402 267,703 252,190 real estate taxes 35,711 37,555 149,322 142,636 total property expenses 103,054 99,957 417,025 394,826 non-property income fee and asset management 2,815 3,351 10,532 10,800 interest and other income 191 347 1,223 2,949 income on deferred compensation plans 5,186 10,399 14,369 12,045 total non-property income 8,192 14,097 26,124 25,794 other expenses property management 7,139 5,841 26,339 24,201 fee and asset management 1,201 1,273 4,511 3,954 general and administrative 14,940 13,274 59,368 53,624 interest 24,582 24,072 97,297 91,526 depreciation and amortization 116,503 91,925 420,692 367,162 expense on deferred compensation plans 5,186 10,399 14,369 12,045 total other expenses 169,551 146,784 622,576 552,512 loss on early retirement of debt — (176 ) — (176 ) gain on sale of operating properties, including land 174,384 — 174,384 382 equity in income of joint ventures 3,125 2,143 9,777 8,052 income from continuing operations before income taxes 218,460 30,877 314,269 130,551 income tax expense (601 ) (496 ) (1,893 ) (1,972 ) net income 217,859 30,381 312,376 128,579 less income allocated to non-controlling interests (4,961 ) (1,188 ) (8,469 ) (4,668 ) net income attributable to common shareholders (b) $212,898 $29,193 $303,907 $123,911 consolidated statements of comprehensive income net income $217,859 $30,381 $312,376 $128,579 other comprehensive income unrealized gain (loss) and unamortized prior service cost on post retirement obligation 154 (318 ) 154 (318 ) reclassification of net loss on cash flow hedging activities, prior service cost and net loss on post retirement obligation 373 366 1,490 1,464 comprehensive income 218,386 30,429 314,020 129,725 less income allocated to non-controlling interests (4,961 ) (1,188 ) (8,469 ) (4,668 ) comprehensive income attributable to common shareholders $213,425 $29,241 $305,551 $125,057 per share data total earnings per common share - basic $2.03 $0.29 $2.97 $1.24 total earnings per common share - diluted 2.02 0.29 2.96 1.24 weighted average number of common shares outstanding: basic 104,611 99,422 101,999 99,385 diluted 105,448 99,507 102,829 99,438 (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, 2021, we recognized $305.4 million of property revenue which consisted 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. this compares to property revenue of $261.6 million recognized for the three months ended december 31, 2020, made up of approximately $230.8 million of rental revenue, including the negative impact of $3.5 million related to the non-cash adjustment to retail straight-line rent receivables, and approximately $30.8 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, 2021, we recognized $1,143.6 million of property revenue which consisted 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. this compares to $1,043.8 million of property revenue recognized for the twelve months ended december 31, 2020, made up of approximately $923.0 million of rental revenue, including the combined negative impact of $12.6 million related to the non-cash adjustment to retail straight-line rent receivables and the resident relief funds, and approximately $120.8 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 $8.3 million and $7.5 million for the three months ended december 31, 2021 and 2020, respectively, and was $31.5 million and $28.9 million for the twelve months ended december 31, 2021 and 2020, respectively. (b) 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 an approximate $14.8 million due to pandemic related impact. please refer to page 28 of the supplement, footnote (a) for additional detail on the breakdown of the pandemic related impact. 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, 2021 2020 2021 2020 funds from operations net income attributable to common shareholders (a) $212,898 $29,193 $303,907 $123,911 real estate depreciation and amortization 114,007 89,504 410,767 357,489 adjustments for unconsolidated joint ventures 2,688 2,550 10,591 9,483 income allocated to non-controlling interests 4,961 1,188 8,469 4,849 gain on sale of operating properties (174,384 ) — (174,384 ) — funds from operations $160,170 $122,435 $559,350 $495,732 less: recurring capitalized expenditures (b) (22,398 ) (21,619 ) (73,603 ) (77,525 ) adjusted funds from operations $137,772 $100,816 $485,747 $418,207 per share data funds from operations - diluted $1.51 $1.21 $5.39 $4.90 adjusted funds from operations - diluted 1.30 1.00 4.68 4.13 distributions declared per common share 0.83 0.83 3.32 3.32 weighted average number of common shares outstanding: ffo/affo - diluted 106,322 101,255 103,747 101,186 property data total operating properties (end of period) (c) 171 167 171 167 total operating apartment homes in operating properties (end of period) (c) 58,300 56,850 58,300 56,850 total operating apartment homes (weighted average) 51,313 49,270 50,479 49,128 (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 an approximate $14.8 million due to pandemic related impact. please refer to page 28 of the supplement, footnote (a), for additional detail on the breakdown of the pandemic related impact. (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, 2021 sep 30, 2021 jun 30, 2021 mar 31, 2021 dec 31, 2020 assets real estate assets, at cost land $1,349,594 $1,317,431 $1,285,634 $1,233,937 $1,225,214 buildings and improvements 8,624,734 8,536,620 8,288,865 7,863,707 7,763,748 9,974,328 9,854,051 9,574,499 9,097,644 8,988,962 accumulated depreciation (3,358,027 ) (3,319,206 ) (3,219,085 ) (3,124,504 ) (3,034,186 ) net operating real estate assets 6,616,301 6,534,845 6,355,414 5,973,140 5,954,776 properties under development, including land 474,739 428,622 443,100 541,958 564,215 investments in joint ventures 13,730 17,788 18,415 18,800 18,994 total real estate assets 7,104,770 6,981,255 6,816,929 6,533,898 6,537,985 accounts receivable – affiliates 18,664 18,686 19,183 19,502 20,158 other assets, net (a) 234,370 252,079 241,687 213,126 216,276 cash and cash equivalents 613,391 428,226 374,556 333,402 420,441 restricted cash 5,589 5,321 4,762 4,105 4,092 total assets $7,976,784 $7,685,567 $7,457,117 $7,104,033 $7,198,952 liabilities and equity liabilities notes payable unsecured $3,170,367 $3,169,428 $3,168,492 $3,167,557 $3,166,625 accounts payable and accrued expenses 191,651 191,648 155,057 159,111 175,608 accrued real estate taxes 66,673 88,116 66,696 33,155 66,156 distributions payable 88,786 87,919 86,689 84,282 84,147 other liabilities (b) 193,052 194,634 193,975 185,852 189,829 total liabilities 3,710,529 3,731,745 3,670,909 3,629,957 3,682,365 equity common shares of beneficial interest 1,126 1,114 1,098 1,070 1,069 additional paid-in capital 5,363,530 5,180,783 4,953,703 4,588,056 4,581,710 distributions in excess of net income attributable to common shareholders (829,453 ) (954,880 ) (897,761 ) (842,628 ) (791,079 ) treasury shares (333,974 ) (334,066 ) (334,161 ) (335,511 ) (341,412 ) accumulated other comprehensive loss (c) (3,739 ) (4,266 ) (4,638 ) (5,010 ) (5,383 ) total common equity 4,197,490 3,888,685 3,718,241 3,405,977 3,444,905 non-controlling interests 68,765 65,137 67,967 68,099 71,682 total equity 4,266,255 3,953,822 3,786,208 3,474,076 3,516,587 total liabilities and equity $7,976,784 $7,685,567 $7,457,117 $7,104,033 $7,198,952 (a) includes net deferred charges of: $969 $1,336 $1,655 $2,031 $2,299 (b) includes deferred revenues of: $334 $208 $232 $256 $284 (c) represents the unrealized net gain (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 december 31, twelve months ended december 31, 2021 2020 2021 2020 net income attributable to common shareholders (a) $212,898 $29,193 $303,907 $123,911 real estate depreciation and amortization 114,007 89,504 410,767 357,489 adjustments for unconsolidated joint ventures 2,688 2,550 10,591 9,483 income allocated to non-controlling interests 4,961 1,188 8,469 4,849 gain on sale of operating properties (174,384 ) — (174,384 ) — funds from operations $160,170 $122,435 $559,350 $495,732 less: recurring capitalized expenditures (22,398 ) (21,619 ) (73,603 ) (77,525 ) adjusted funds from operations $137,772 $100,816 $485,747 $418,207 weighted average number of common shares outstanding: eps diluted 105,448 99,507 102,829 99,438 ffo/affo diluted 106,322 101,255 103,747 101,186 three months ended december 31, twelve months ended december 31, 2021 2020 2021 2020 total earnings per common share - diluted $2.02 $0.29 $2.96 $1.24 real estate depreciation and amortization 1.07 0.88 3.96 3.53 adjustments for unconsolidated joint ventures 0.03 0.03 0.09 0.09 income allocated to non-controlling interests 0.03 0.01 0.06 0.04 gain on sale of operating properties (1.64 ) — (1.68 ) — ffo per common share - diluted $1.51 $1.21 $5.39 $4.90 less: recurring capitalized expenditures (0.21 ) (0.21 ) (0.71 ) (0.77 ) affo per common share - diluted $1.30 $1.00 $4.68 $4.13 (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 an approximate $14.8 million due to pandemic related impact. the total pandemic 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 approximately $1.3 million of resident relief funds paid to residents of the operating communities owned by our unconsolidated joint ventures. additionally, we incurred approximately $4.5 million of pandemic expenses at our operating communities during the third and fourth 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 pandemic 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 the pandemic during the twelve months ended december 31, 2020. 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: 1q22 range 2022 range low high low high expected earnings per common share - diluted $0.38 $0.42 $1.65 $1.95 expected real estate depreciation and amortization 1.03 1.03 4.28 4.28 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 0.06 0.06 expected ffo per share - diluted $1.45 $1.49 $6.09 $6.39 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 12 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, 2021 2020 2021 2020 net income (a) $217,859 $30,381 $312,376 $128,579 less: fee and asset management income (2,815 ) (3,351 ) (10,532 ) (10,800 ) less: interest and other income (191 ) (347 ) (1,223 ) (2,949 ) less: income on deferred compensation plans (5,186 ) (10,399 ) (14,369 ) (12,045 ) plus: property management expense 7,139 5,841 26,339 24,201 plus: fee and asset management expense 1,201 1,273 4,511 3,954 plus: general and administrative expense 14,940 13,274 59,368 53,624 plus: interest expense 24,582 24,072 97,297 91,526 plus: depreciation and amortization expense 116,503 91,925 420,692 367,162 plus: expense on deferred compensation plans 5,186 10,399 14,369 12,045 plus: loss on early retirement of debt — 176 — 176 less: gain on sale of operating properties, including land (174,384 ) — (174,384 ) (382 ) less: equity in income of joint ventures (3,125 ) (2,143 ) (9,777 ) (8,052 ) plus: income tax expense 601 496 1,893 1,972 noi (b) (c) $202,310 $161,597 $726,560 $649,011 "same property" communities $168,342 $146,564 $620,662 $592,495 non-"same property" communities 28,174 15,085 86,160 58,885 development and lease-up communities 2,867 (4 ) 4,876 (7 ) pandemic related impact (b) (c) — — — (13,614 ) other 2,927 (48 ) 14,862 11,252 noi (b) (c) (d) $202,310 $161,597 $726,560 $649,011 (a) net income 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 was also negatively impacted for the twelve months ended december 31, 2020 by an approximate $14.8 million due to pandemic related impact. please refer to page 28 of the supplement, footnote (a), for additional detail on the breakdown of the pandemic related impact. (b) two resident relief funds were established for residents experiencing financial losses caused by the pandemic, and paid out approximately $9.1 million to approximately 7,100 camden residents of our wholly-owned communities, which were recognized in 2q20 as a reduction of property revenues. (c) we incurred approximately $4.5 million of directly-related pandemic related expenses at our operating communities for the twelve months ended december 31, 2020, which included $2.8 million of bonuses paid to employees providing essential services during the pandemic and approximately $1.7 million in other directly-related pandemic expenses. (d) for the three and twelve months ended december 31, 2020, noi was negatively impacted by an approximate $3.5 million non-cash adjustment to retail straight-line rent receivables. 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 sale 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, income (loss) allocated to non-controlling interests, as well as the direct pandemic related impact. 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, 2021 2020 2021 2020 net income attributable to common shareholders (a) $212,898 $29,193 $303,907 $123,911 plus: interest expense 24,582 24,072 97,297 91,526 plus: depreciation and amortization expense 116,503 91,925 420,692 367,162 plus: income allocated to non-controlling interests 4,961 1,188 8,469 4,668 plus: income tax expense 601 496 1,893 1,972 plus: pandemic related impact (b) — — — 14,364 plus: retail straight-line rent receivables adjustment (c) — 3,519 — 3,519 less: gain on sale of operating properties, including land (174,384 ) — (174,384 ) (382 ) plus: loss on early retirement of debt — 176 — 176 less: equity in income of joint ventures (3,125 ) (2,143 ) (9,777 ) (8,052 ) adjusted ebitda $182,036 $148,426 $648,097 $598,864 annualized adjusted ebitda $728,144 $593,704 $648,097 $598,864 (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 an approximate $14.8 million due to pandemic related impact. please refer to page 28 of the supplement, footnote (a), for additional detail on the breakdown of the pandemic related impact. (b) approximately $14.4 million of the stated pandemic related impact, which consists of the resident relief funds, employee relief fund, directly-related pandemic expenses, and bonuses paid to on-site employees, has been added back to the adjusted ebitda calculation for the twelve months ended december 31, 2020, respectively. (c) during 4q20, we took an approximately $3.5 million negative non-cash adjustment to retail straight-line rent receivables as a result of our assessing collectability by tenant and determining it was no longer probable substantially all leasing revenue would be collected from certain retail tenants. this adjustment has been added back to the adjusted ebitda calculation for the three and twelve months ended december 31, 2020. 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, 2021 2020 2021 2020 unsecured notes payable $3,170,054 $3,166,316 $3,168,649 $3,062,587 total debt 3,170,054 3,166,316 3,168,649 3,062,587 less: cash and cash equivalents (385,194 ) (403,119 ) (329,967 ) (376,114 ) net debt $2,784,860 $2,763,197 $2,838,682 $2,686,473 net debt to annualized adjusted ebitda: three months ended december 31, twelve months ended december 31, 2021 2020 2021 2020 net debt $2,784,860 $2,763,197 $2,838,682 $2,686,473 annualized adjusted ebitda 728,144 593,704 648,097 598,864 net debt to annualized adjusted ebitda 3.8x 4.7x 4.4x 4.5x camden 2022 financial outlook as of february 3, 2022 (unaudited) earnings guidance - per diluted share expected ffo per share - diluted $6.09 - $6.39 "same property" communities number of units - 2022 46,789 2021 base net operating income $668 million total revenue growth 7.75% - 9.75% total expense growth 2.25% - 3.75% net operating income growth 10.50% - 13.50% impact from 1% change in noi growth is approximately $0.062 / share capitalized expenditures recurring $80 - $84 million revenue enhancing capex, repositions, redevelopment, and repurposes (a) $62 - $66 million non-recurring capital expenditures $16 - $18 million acquisitions/dispositions acquisition volume (consolidated on balance sheet) $500 - $700 million disposition volume (consolidated on balance sheet) $200 - $300 million development development starts (consolidated on balance sheet) $400 - $600 million development spend (consolidated on balance sheet) $300 - $330 million equity in income of joint ventures (ffo) $22 - $24 million non-property income non-property income $10 - $12 million includes: fee and asset management income and interest and other income corporate expenses general and administrative / property management expenses $82 - $88 million fee and asset management expense $4 - $6 million corporate g&a depreciation/amortization $10 - $12 million capital expensed interest $95 - $99 million capitalized interest $16 - $18 million (a) note: this table contains forward-looking statements. please see the paragraph regarding forward-looking statements earlier in this document. additionally, please refer to earlier pages for definitions and reconciliations of all non-gaap financial measures presented in this document.
