Camden property trust announces 2020 operating results, 2021 financial outlook, and first quarter 2021 dividend
Houston--(business wire)--camden property trust (nyse:cpt) (the "company") announced today operating results for the three and twelve months ended december 31, 2020. 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, 2020 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 2020 2019 2020 2019 eps $0.29 $0.95 $1.24 $2.22 ffo $1.21 $1.24 $4.90 $5.04 affo $1.00 $1.04 $4.13 $4.32 eps, ffo and affo for the three and twelve months ended december 31, 2020 were negatively impacted by a $3.5 million or $0.035 per diluted share non-cash adjustment to retail straight-line rent receivables during the fourth quarter of 2020. in addition, the company incurred approximately $14.8 million or $0.15 per diluted share of covid-19 related impact for the twelve months ended december 31, 2020. quarterly growth sequential growth year-to-date growth same property results* 4q20 vs. 4q19 4q20 vs. 3q20 2020 vs. 2019 revenues (0.1)% (0.7)% 1.1% expenses 8.4% (0.9)% 3.8% net operating income ("noi") (4.6)% (0.5)% (0.4)% *same property results exclude any covid-19 related impact. same property results 4q20 4q19 3q20 occupancy 95.5% 96.2% 95.6% for 2020, the company defines same property communities as communities owned and stabilized since january 1, 2019, 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. january collections same property scheduled rents* january 2021 january 2020 4q20 4q19 collected 96.4% 97.8% 98.6% 97.9% deferred/payment plan arranged —% —% —% —% delinquent 3.6% 2.2% 1.4% 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. retail revenues are not included above and comprise approximately 0.6% of total property revenues, excluding the negative impact of the $3.5 million non-cash adjustment to retail straight-line rent receivables during the fourth quarter of 2020. the company collected 60% and 62% of its retail billings for the fourth quarter of 2020 and january 2021, respectively. operating statistics - same property portfolio new lease and renewal data - date signed (1) (2) january 2021* january 2020 4q20(2) 4q19(2) new lease rates (3.1)% 0.7% (3.9)% (0.3)% renewal rates 3.0% 5.3% 2.9% 5.1% blended rates (0.2)% 3.1% (0.9)% 2.1% new leases 1,604 1,417 1,374 1,350 renewals 1,559 1,531 1,140 1,165 total leases 3,163 2,948 2,514 2,515 new lease and renewal data - date effective (3) (4) january 2021* january 2020 4q20(4) 4q19(4) new lease rates (3.4)% 0.2% (4.0)% (0.4)% renewal rates 2.9% 5.0% 2.6% 4.7% blended rates (1.0)% 2.4% (1.1)% 1.9% new leases 1,540 1,395 1,490 1,398 renewals 960 1,178 1,150 1,155 total leases 2,500 2,573 2,640 2,553 *data as of february 2, 2021 (1) average change in same property new lease and renewal rates vs. expiring lease rates when signed. (2) data represents average monthly leases signed during the period. (3) average change in same property new lease and renewal rates vs. expiring lease rates when effective. (4) data represents average monthly leases effective during the period. occupancy and turnover data january 2021* january 2020 4q20 4q19 occupancy 95.7% 96.2% 95.5% 96.2% annualized gross turnover 46% 46% 46% 44% annualized net turnover 36% 37% 36% 36% *data as of february 2, 2021 development activity during the quarter, construction was completed at camden rino in denver, co and camden cypress creek ii (jv) in cypress, tx, and leasing began at camden north end ii in phoenix, az. development communities - construction completed and projects in lease-up ($ in millions) total total % leased community name location homes cost as of 2/3/2021 camden downtown i houston, tx 271 $131.2 59 % camden rino denver, co 233 78.9 70 % camden cypress creek ii (jv) cypress, tx 234 32.2 51 % total 738 $242.3 development communities - construction ongoing ($ in millions) total total % leased community name location homes estimated cost as of 2/3/2021 camden north end ii phoenix, az 343 $90.0 26 % camden lake eola orlando, fl 360 125.0 camden buckhead atlanta, ga 366 160.0 camden hillcrest san diego, ca 132 95.0 camden atlantic plantation, fl 269 100.0 camden tempe ii tempe, az 397 115.0 camden noda charlotte, nc 387 105.0 total 2,254 $790.0 acquisition activity during the quarter, camden acquired 4.1 acres of land in durham, nc for $27.6 million for the future development of approximately 354 apartment homes. liquidity analysis as of december 31, 2020, camden had approximately $1.3 billion of liquidity comprised of approximately $420 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 $325 million left to fund under its existing wholly-owned development pipeline. as of december 31, 2020, camden had outstanding letters of credit totaling approximately $12 million, which reduced the availability under its unsecured credit facility to $888 million. capital market transactions during the quarter, the company entered into a $40 million two-year unsecured floating rate term loan with an unrelated third party and used the net proceeds, together with cash on hand, to repay its $100 million unsecured term loan which was scheduled to mature in 2022. earnings guidance camden provided initial earnings guidance for 2021 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for first quarter 2021 as detailed below. 1q21 2021 per diluted share range range midpoint eps $0.27 - $0.33 $0.71 - $1.11 $0.91 ffo $1.20 - $1.26 $4.80 - $5.20 $5.00 2021 same property growth range midpoint revenues (0.25)% - 1.75% 0.75% expenses 3.00% - 4.00% 3.50% noi (2.70)% - 1.00% (0.85)% 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. 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 2021 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 2021 dividend of $0.83 per common share. the dividend is payable on april 16, 2021 to shareholders of record as of march 31, 2021. 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 5, 2021 at 10:00 am ct domestic dial-in number: (888) 317-6003; international dial-in number: (412) 317-6061 passcode: 1538225 webcast: https://services.choruscall.com/links/cpt210205.html 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 56,850 apartment homes across the united states. upon completion of 7 properties currently under development, the company’s portfolio will increase to 59,104 apartment homes in 174 properties. camden has been recognized as one of the 100 best companies to work for® by fortune magazine for 13 consecutive years, most recently ranking #18. 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 december 31, twelve months ended december 31, 2020 2019 2020 2019 operating data property revenues (a) $261,554 $263,461 $1,043,837 $1,028,461 property expenses property operating and maintenance 62,402 58,217 252,190 235,589 real estate taxes 37,555 32,192 142,636 130,758 total property expenses 99,957 90,409 394,826 366,347 non-property income fee and asset management 3,351 2,847 10,800 8,696 interest and other income 347 976 2,949 3,090 income on deferred compensation plans 10,399 6,702 12,045 21,694 total non-property income 14,097 10,525 25,794 33,480 other expenses property management 5,841 6,386 24,201 25,290 fee and asset management 1,273 1,737 3,954 5,759 general and administrative 13,274 13,174 53,624 53,201 interest 24,072 20,168 91,526 80,706 depreciation and amortization 91,925 85,540 367,162 336,274 expense on deferred compensation plans 10,399 6,702 12,045 21,694 total other expenses 146,784 133,707 552,512 522,924 loss on early retirement of debt (176 ) (11,995 ) (176 ) (11,995 ) gain on sale of operating properties, including land — 49,901 382 49,901 equity in income of joint ventures 2,143 8,829 8,052 14,783 income from continuing operations before income taxes 30,877 96,605 130,551 225,359 income tax expense (496 ) (380 ) (1,972 ) (1,089 ) net income 30,381 96,225 128,579 224,270 less income allocated to non-controlling interests (1,188 ) (1,211 ) (4,668 ) (4,647 ) net income attributable to common shareholders (b) $29,193 $95,014 $123,911 $219,623 consolidated statements of comprehensive income net income $30,381 $96,225 $128,579 $224,270 other comprehensive income unrealized loss on cash flow hedging activities — — — (12,998 ) unrealized loss and unamortized prior service cost on post retirement obligation (318 ) (449 ) (318 ) (449 ) reclassification of net loss (gain) on cash flow hedging activities, prior service cost and net loss on post retirement obligation 366 358 1,464 (11 ) comprehensive income 30,429 96,134 129,725 210,812 less income allocated to non-controlling interests (1,188 ) (1,211 ) (4,668 ) (4,647 ) comprehensive income attributable to common shareholders $29,241 $94,923 $125,057 $206,165 per share data total earnings per common share - basic $0.29 $0.96 $1.24 $2.23 total earnings per common share - diluted 0.29 0.95 1.24 2.22 weighted average number of common shares outstanding: basic 99,422 99,055 99,385 98,460 diluted 99,507 100,932 99,438 99,384 (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, 2020, we recognized $261.6 million of property revenue which consisted 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. this compares to property revenue of $263.5 million recognized for the three months ended december 31, 2019, made up of approximately $234.1 million of rental revenue and approximately $29.4 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, 2020, we recognized $1,043.8 million of property revenue which consisted 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. this compares to property revenue of $1,028.5 million recognized for the twelve months ended december 31, 2019, made up of approximately $911.1 million of rental revenue and approximately $117.4 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. revenue related to utility rebilling to residents was $7.5 million and $6.9 million for the three months ended december 31, 2020 and 2019, respectively. for the twelve months ended december 31, 2020 we recognized $28.9 million of revenue related to utility rebilling to residents. this compares to revenue related to utility rebilling to residents of $26.3 million for the twelve months ended december 31, 2019. (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 approximately $14.8 million of covid-19 related impact, which consists of the resident relief funds, employee relief fund, direct covid-19 expenses, and bonus paid to on-site employees. please refer to page 29 of the supplement, footnote (a), for additional detail on the breakdown of the covid-19 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, 2020 2019 2020 2019 funds from operations 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 gain on sale of operating properties, net of tax — (49,901 ) — (49,901 ) gain on sale of unconsolidated joint venture property — (6,204 ) — (6,204 ) income allocated to non-controlling interests 1,188 1,289 4,849 4,838 funds from operations $122,435 $125,586 $495,732 $505,388 less: recurring capitalized expenditures (b) (21,619 ) (21,109 ) (77,525 ) (72,172 ) adjusted funds from operations $100,816 $104,477 $418,207 $433,216 per share data funds from operations - diluted $1.21 $1.24 $4.90 $5.04 adjusted funds from operations - diluted 1.00 1.04 4.13 4.32 distributions declared per common share 0.83 0.80 3.32 3.20 weighted average number of common shares outstanding: ffo/affo - diluted 101,255 100,932 101,186 100,332 property data total operating properties (end of period) (c) 167 164 167 164 total operating apartment homes in operating properties (end of period) (c) 56,850 56,107 56,850 56,107 total operating apartment homes (weighted average) 49,270 48,875 49,128 48,549 (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, which consists of the resident relief funds, employee relief fund, direct covid-19 expenses, and bonus paid to on-site employees. please refer to page 29 of the supplement, footnote (a), for additional detail on the breakdown of the covid-19 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, 2020 sep 30, 2020 jun 30, 2020 mar 31, 2020 dec 31, 2019 assets real estate assets, at cost land $1,225,214 $1,216,942 $1,206,656 $1,206,130 $1,199,384 buildings and improvements 7,763,748 7,677,676 7,597,165 7,547,150 7,404,090 8,988,962 8,894,618 8,803,821 8,753,280 8,603,474 accumulated depreciation (3,034,186 ) (2,944,769 ) (2,857,124 ) (2,770,848 ) (2,686,025 ) net operating real estate assets 5,954,776 5,949,849 5,946,697 5,982,432 5,917,449 properties under development, including land 564,215 522,664 514,336 467,288 512,319 investments in joint ventures 18,994 20,992 21,735 22,318 20,688 total real estate assets 6,537,985 6,493,505 6,482,768 6,472,038 6,450,456 accounts receivable – affiliates 20,158 20,152 21,432 20,344 21,833 other assets, net (a) 216,276 217,534 211,823 196,544 248,716 cash and cash equivalents 420,441 589,614 601,584 22,277 23,184 restricted cash 4,092 3,918 4,093 4,367 4,315 total assets $7,198,952 $7,324,723 $7,321,700 $6,715,570 $6,748,504 liabilities and equity liabilities notes payable unsecured $3,166,625 $3,225,799 $3,224,871 $2,606,876 $2,524,099 accounts payable and accrued expenses 175,608 183,654 167,453 156,841 171,719 accrued real estate taxes 66,156 87,159 62,499 32,365 54,408 distributions payable 84,147 84,137 84,138 84,112 80,973 other liabilities (b) 189,829 177,967 172,172 164,052 215,581 total liabilities 3,682,365 3,758,716 3,711,133 3,044,246 3,046,780 equity common shares of beneficial interest 1,069 1,068 1,068 1,069 1,069 additional paid-in capital 4,581,710 4,577,813 4,574,387 4,569,995 4,566,731 distributions in excess of net income attributable to common shareholders (791,079 ) (737,556 ) (689,809 ) (623,570 ) (584,167 ) treasury shares, at cost (341,412 ) (341,831 ) (341,637 ) (342,778 ) (348,419 ) accumulated other comprehensive income (loss) (c) (5,383 ) (5,431 ) (5,797 ) (6,163 ) (6,529 ) total common equity 3,444,905 3,494,063 3,538,212 3,598,553 3,628,685 non-controlling interests 71,682 71,944 72,355 72,771 73,039 total equity 3,516,587 3,566,007 3,610,567 3,671,324 3,701,724 total liabilities and equity $7,198,952 $7,324,723 $7,321,700 $6,715,570 $6,748,504 (a) includes net deferred charges of: $2,299 $2,686 $3,031 $3,399 $3,658 (b) includes deferred 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: three months ended december 31, twelve months ended 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 december 31, twelve months ended 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 (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. 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: 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. 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, 2020 2019 2020 2019 net income (a) $30,381 $96,225 $128,579 $224,270 less: fee and asset management income (3,351 ) (2,847 ) (10,800 ) (8,696 ) less: interest and other income (347 ) (976 ) (2,949 ) (3,090 ) less: income on deferred compensation plans (10,399 ) (6,702 ) (12,045 ) (21,694 ) plus: property management expense 5,841 6,386 24,201 25,290 plus: fee and asset management expense 1,273 1,737 3,954 5,759 plus: general and administrative expense 13,274 13,174 53,624 53,201 plus: interest expense 24,072 20,168 91,526 80,706 plus: depreciation and amortization expense 91,925 85,540 367,162 336,274 plus: expense on deferred compensation plans 10,399 6,702 12,045 21,694 plus: loss on early retirement of debt 176 11,995 176 11,995 less: gain on sale of operating properties, including land — (49,901 ) (382 ) (49,901 ) less: equity in income of joint ventures (2,143 ) (8,829 ) (8,052 ) (14,783 ) plus: income tax expense 496 380 1,972 1,089 noi (b) (c) (d) $161,597 $173,052 $649,011 $662,114 "same property" communities $143,953 $150,819 $581,631 $584,056 non-"same property" communities 20,551 18,992 81,830 66,580 development and lease-up communities 15 15 (724 ) 2 covid-19 related impact (b) (c) — — (13,614 ) — dispositions/other (2,922 ) 3,226 (112 ) 11,476 noi (b) (c) (d) $161,597 $173,052 $649,011 $662,114 (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 approximately $14.8 million of covid-19 related impact, which consists of the resident relief funds, employee relief fund, direct covid-19 expenses, and bonus paid to on-site employees. please refer to page 29 of the supplement, footnote (a), for additional detail on the breakdown of the covid-19 related impact. (b) two resident relief funds were established for residents experiencing financial losses caused by the covid-19 pandemic, and paid out approximately $9.1 million to approximately 7,100 camden residents of our wholly-owned communities. all charges related to these funds were recognized as a reduction of revenue for the twelve months ended december 31, 2020. (c) the company incurred approximately $4.5 million of covid-19 expenses at our operating communities for the twelve months ended december 31, 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. (d) for the three and twelve months ended december 31, 2020, noi is 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, non-cash retail straight-line rent receivables adjustment, and direct covid-19 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, 2020 2019 2020 2019 net income attributable to common shareholders (a) $29,193 $95,014 $123,911 $219,623 plus: interest expense 24,072 20,168 91,526 80,706 plus: depreciation and amortization expense 91,925 85,540 367,162 336,274 plus: income allocated to non-controlling interests 1,188 1,211 4,668 4,647 plus: income tax expense 496 380 1,972 1,089 plus: covid-19 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 — (49,901 ) (382 ) (49,901 ) plus: loss on early retirement of debt 176 11,995 176 11,995 less: equity in income of joint ventures (2,143 ) (8,829 ) (8,052 ) (14,783 ) adjusted ebitda $148,426 $155,578 $598,864 $589,650 annualized adjusted ebitda $593,704 $622,312 $598,864 $589,650 (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, which consists of the resident relief funds, employee relief fund, direct covid-19 expenses, and bonus paid to on-site employees. please refer to page 29 of the supplement, footnote (a), for additional detail on the breakdown of the covid-19 related impact. (b) approximately $14.4 million of the stated covid-19 related impact, which consists of the resident relief funds, employee relief fund, direct covid-19 expenses, and bonus paid to on-site employees, has been added back to the adjusted ebitda calculation for the twelve months ended december 31, 2020. (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 as 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, 2020 2019 2020 2019 unsecured notes payable $3,166,316 $2,494,525 $3,062,587 $2,332,764 secured notes payable — — — 90,699 total debt 3,166,316 2,494,525 3,062,587 2,423,463 less: cash and cash equivalents (403,119 ) (49,696 ) (376,114 ) (100,815 ) net debt $2,763,197 $2,444,829 $2,686,473 $2,322,648 net debt to annualized adjusted ebitda: three months ended december 31, twelve months ended december 31, 2020 2019 2020 2019 net debt $2,763,197 $2,444,829 $2,686,473 $2,322,648 annualized adjusted ebitda 593,704 622,312 598,864 589,650 net debt to annualized adjusted ebitda 4.7x 3.9x 4.5x 3.9x camden 2021 financial outlook as of february 4, 2021 (unaudited) earnings guidance - per diluted share expected ffo per share - diluted $4.80 - $5.20 "same property" communities number of units - 2021 45,490 2020 base net operating income $608 million total revenue growth (0.25)% - 1.75% total expense growth 3.00% - 4.00% net operating income growth (2.70)% - 1.00% impact from 1% change in noi growth is approximately $0.060 / share capitalized expenditures recurring $70 - $74 million revenue enhancing capex and repositions (a) $58 - $62 million acquisitions/dispositions acquisition volume (consolidated on balance sheet) $400 - $500 million disposition volume (consolidated on balance sheet) $400 - $500 million development development starts (consolidated on balance sheet) $120 - $320 million development spend (consolidated on balance sheet) $285 - $315 million equity in income of joint ventures (ffo) $18 - $20 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 expense $54 - $58 million property management expense $23 - $25 million fee and asset management expense $4 - $6 million corporate g&a depreciation/amortization $9 - $11 million capital expected capital transactions $0 - $400 million expensed interest $97 - $101 million capitalized interest $15 - $17 million (a) revenue enhancing capex and repositions are capital expenditures that improve a community's cash flow and competitive position, typically kitchen and bath upgrades or other new amenities, including our smart access solution. note: this table contains forward-looking statements. please see the paragraph regarding forward-looking statements earlier in this document. additionally, please refer to the following pages for definitions and reconciliations of all non-gaap financial measures presented in this document.
