Camden property trust announces 2022 operating results, 2023 financial outlook, and first quarter 2023 dividend
Houston--(business wire)--camden property trust (nyse:cpt) (the "company") announced today operating results for the three and twelve months ended december 31, 2022. 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, 2022 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 2022 2021 2022 2021 eps(1)(2) $0.42 $2.02 $6.04 $2.96 ffo(1) $1.74 $1.51 $6.59 $5.39 affo(1) $1.48 $1.30 $5.76 $4.68 (1) for the twelve months ended december 31, 2022, eps, ffo, and affo included approximately $0.01 per diluted share in storm-related expenses related to hurricane ian. (2) for the twelve months ended december 31, 2022, eps included a non-cash gain on acquisition of unconsolidated joint venture interests of approximately $4.37 per diluted share. quarterly growth sequential growth year-to-date growth same property results 4q22 vs. 4q21 4q22 vs. 3q22 2022 vs. 2021 revenues 9.9% 0.8% 11.2% expenses(1) 8.1% (3.9)% 5.1% net operating income ("noi")(1) 10.9% 3.3% 14.6% (1) for the twelve months ended december 31, 2022, same property results exclude approximately $1.0 million of storm-related expenses related to hurricane ian. same property results 4q22 4q21 3q22 occupancy 95.8% 97.1% 96.6% for 2022, the company defines same property communities as communities wholly-owned and stabilized since january 1, 2021, excluding communities under redevelopment and properties held for sale. a reconciliation of net income to noi and same property noi is included in the financial tables accompanying this press release. operating statistics - same property portfolio new lease and renewal data - date signed (1) january 2023* january 2022 4q22 4q21 new lease rates 2.0% 16.5% 4.0% 16.7% renewal rates 7.3% 13.5% 8.4% 14.2% blended rates 4.2% 14.9% 6.1% 15.5% new lease and renewal data - date effective (2) january 2023* january 2022 4q22 4q21 new lease rates 1.2% 16.6% 5.3% 17.7% renewal rates 8.4% 15.0% 10.1% 13.6% blended rates 4.8% 15.8% 7.6% 15.7% *data as of january 30, 2023 (1) average change in same property new lease and renewal rates vs. expiring lease rates when signed. (2) average change in same property new lease and renewal rates vs. expiring lease rates when effective. occupancy and turnover data january 2023* january 2022 4q22 4q21 occupancy 95.4% 97.1% 95.8% 97.1% annualized gross turnover 42% 43% 44% 42% annualized net turnover 34% 37% 37% 36% *data as of january 30, 2023 development activity during the quarter, construction was completed at camden atlantic in plantation, fl and leasing continued at camden tempe ii in phoenix, az. development communities - construction completed and projects in lease-up ($ in millions) total total % leased community name location homes cost as of 1/30/2023 camden atlantic plantation, fl 269 $100.2 87% development communities - construction ongoing ($ in millions) total total % leased community name location homes estimated cost as of 1/30/2023 camden tempe ii tempe, az 397 $115.0 50% camden noda charlotte, nc 387 108.0 camden durham durham, nc 420 145.0 camden village district raleigh, nc 369 138.0 camden woodmill creek the woodlands, tx 189 75.0 camden long meadow farms richmond, tx 188 80.0 total 1,950 $661.0 capital markets transactions during the quarter, the company used the $300 million delayed draw unsecured term loan facility and borrowings from our existing unsecured credit facility to repay the principal amount of our 3.15% senior unsecured note payable which matured on december 15, 2022, for a total of $350.0 million, plus accrued interest. the current weighted average interest rate on our unsecured term loan facility and unsecured credit facility is 5.2%. liquidity analysis as of december 31, 2022, camden had nearly $1.2 billion of liquidity comprised of approximately $10.7 million in cash and cash equivalents, and over $1.1 billion of availability under its unsecured credit facility. at quarter-end, the company had $306.7 million left to fund under its existing wholly-owned development pipeline. earnings guidance camden provided initial earnings guidance for 2023 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for first quarter 2023 as detailed below. expected eps excludes gains, if any, from future real estate transactions. 1q23 2023 per diluted share range range midpoint eps $0.36 - $0.40 $1.53 - $1.83 $1.68 ffo $1.63- $1.67 $6.70 - $7.00 $6.85 a reconciliation of 2023 ffo per share guidance as compared to 2022 actual results is detailed below. 2022 ffo per share - actual $ 6.59 5% same store noi growth 0.36 additional noi from fund acquisition 0.26 growth in other non-same store/development communities 0.16 increased interest expense (0.21) 2022 amortization of net below market leases - fund acquisition (0.07) 2022 equity in income of joint ventures and management fees - fund (0.07) higher overhead expenses (0.06) additional shares outstanding for full year 2023 (0.06) other - 2022 chirp earnout and 2022 disposition (0.05) 2023 ffo per share - midpoint guidance $ 6.85 2023 same property growth range midpoint revenues 4.10% - 6.10% 5.10% expenses 4.75% - 6.25% 5.50% noi 3.50% - 6.50% 5.00% camden intends to update its earnings guidance to the market on a quarterly basis. additional information on the company’s 2023 financial outlook including key assumptions for same property growth 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 2023 dividend of $1.00 per common share payable on april 17, 2023 to shareholders of record as of march 31, 2023. 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 3, 2023 at 10:00 am ct domestic dial-in number: (888) 317-6003; international dial-in number: (412) 317-6061; passcode: 2673669 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 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 500 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 172 properties containing 58,702 apartment homes across the united states. upon completion of 6 properties currently under development, the company’s portfolio will increase to 60,652 apartment homes in 178 properties. camden has been recognized as one of the 100 best companies to work for® by fortune magazine for 15 consecutive years, most recently ranking #26. 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, 2022 2021 2022 2021 operating data property revenues (a) $375,909 $305,364 $1,422,756 $1,143,585 property expenses (b) property operating and maintenance 81,233 67,343 315,737 267,703 real estate taxes 45,896 35,711 182,344 149,322 total property expenses 127,129 103,054 498,081 417,025 non-property income fee and asset management 931 2,815 5,188 10,532 interest and other income 138 191 3,019 1,223 income/(loss) on deferred compensation plans 8,813 5,186 (19,637 ) 14,369 total non-property income/(loss) 9,882 8,192 (11,430 ) 26,124 other expenses property management 7,373 7,139 28,601 26,339 fee and asset management 426 1,201 2,516 4,511 general and administrative 15,887 14,940 60,413 59,368 interest 30,668 24,582 113,424 97,297 depreciation and amortization 147,271 116,503 577,020 420,692 expense/(benefit) on deferred compensation plans 8,813 5,186 (19,637 ) 14,369 total other expenses 210,438 169,551 762,337 622,576 gain on sale of operating properties — 174,384 36,372 174,384 gain on acquisition of unconsolidated joint venture interests — — 474,146 — equity in income of joint ventures — 3,125 3,048 9,777 income from continuing operations before income taxes 48,224 218,460 664,474 314,269 income tax expense (753 ) (601 ) (2,966 ) (1,893 ) net income 47,471 217,859 661,508 312,376 less income allocated to non-controlling interests (1,762 ) (4,961 ) (7,895 ) (8,469 ) net income attributable to common shareholders $45,709 $212,898 $653,613 $303,907 consolidated statements of comprehensive income net income $47,471 $217,859 $661,508 $312,376 other comprehensive income unrealized gain and unamortized prior service cost on post retirement obligation 489 154 489 154 reclassification of net loss on cash flow hedging activities, prior service cost and net loss on post retirement obligation 369 373 1,476 1,490 comprehensive income 48,329 218,386 663,473 314,020 less income allocated to non-controlling interests (1,762 ) (4,961 ) (7,895 ) (8,469 ) comprehensive income attributable to common shareholders $46,567 $213,425 $655,578 $305,551 per share data total earnings per common share - basic $0.42 $2.03 $6.07 $2.97 total earnings per common share - diluted 0.42 2.02 6.04 2.96 weighted average number of common shares outstanding: basic 108,467 104,611 107,605 101,999 diluted 108,512 105,448 108,388 102,829 (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, 2022, we recognized $375.9 million of property revenue which consisted of approximately $336.0 million of rental revenue and approximately $39.9 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 $305.4 million recognized for the three months ended december 31, 2021, made up 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. for the twelve months ended december 31, 2022, we recognized $1,422.7 million of property revenue which consisted of approximately $1,265.9 million of rental revenue and approximately $156.8 million of amounts received under contractual terms for other services considered to be non-lease contracts. this compares to the $1,143.6 million of property revenue recognized for the twelve months ended december 31, 2021, made up 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. revenue related to utility rebilling to residents was $10.0 million and $8.3 million for the three months ended december 31, 2022 and 2021, respectively and was $37.5 million and $31.5 million for the twelve months ended december 31, 2022 and 2021, respectively. (b) for the twelve months ended december 31, 2022 expenses include approximately $1.0 million in storm-related expenses related to hurricane ian. 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, 2022 2021 2022 2021 funds from operations net income attributable to common shareholders (a) $45,709 $212,898 $653,613 $303,907 real estate depreciation and amortization 144,105 114,007 565,913 410,767 adjustments for unconsolidated joint ventures — 2,688 2,709 10,591 income allocated to non-controlling interests 1,762 4,961 7,895 8,469 gain on sale of operating property — (174,384 ) (36,372 ) (174,384 ) gain on acquisition of unconsolidated joint venture interests — — (474,146 ) — funds from operations $191,576 $160,170 $719,612 $559,350 less: recurring capitalized expenditures (b) (29,033 ) (22,398 ) (90,715 ) (73,603 ) adjusted funds from operations $162,543 $137,772 $628,897 $485,747 per share data funds from operations - diluted $1.74 $1.51 $6.59 $5.39 adjusted funds from operations - diluted 1.48 1.30 5.76 4.68 distributions declared per common share 0.94 0.83 3.76 3.32 weighted average number of common shares outstanding: ffo/affo - diluted 110,117 106,322 109,261 103,747 property data total operating properties (end of period) (c) 172 171 172 171 total operating apartment homes in operating properties (end of period) (c) 58,702 58,300 58,702 58,300 total operating apartment homes (weighted average) 58,621 51,313 56,566 50,479 (a) net income attributable to common shareholders for the twelve months ended december 31, 2022 included approximately $1.0 million of storm-related expenses related to hurricane ian. (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. balance sheets (in thousands) (unaudited) dec 31, 2022 sep 30, 2022 jun 30, 2022 mar 31, 2022 dec 31, 2021 assets real estate assets, at cost land $1,716,273 $1,706,396 $1,695,118 $1,343,209 $1,349,594 buildings and improvements 10,674,619 10,574,820 10,440,037 8,651,674 8,624,734 12,390,892 12,281,216 12,135,155 9,994,883 9,974,328 accumulated depreciation (3,848,111 ) (3,709,487 ) (3,572,764 ) (3,436,969 ) (3,358,027 ) net operating real estate assets 8,542,781 8,571,729 8,562,391 6,557,914 6,616,301 properties under development, including land 524,981 529,076 581,844 488,100 474,739 investments in joint ventures — — — 13,181 13,730 total real estate assets 9,067,762 9,100,805 9,144,235 7,059,195 7,104,770 accounts receivable – affiliates 13,364 13,258 13,258 13,258 18,664 other assets, net (a) 229,371 231,645 249,865 254,763 234,370 cash and cash equivalents 10,687 62,027 72,095 1,129,716 613,391 restricted cash 6,751 6,390 6,563 5,778 5,589 total assets $9,327,935 $9,414,125 $9,486,016 $8,462,710 $7,976,784 liabilities and equity liabilities notes payable unsecured $3,165,924 $3,173,198 $3,222,252 $3,671,309 $3,170,367 secured 514,989 514,843 514,698 — — accounts payable and accrued expenses 211,370 212,558 195,070 169,973 191,651 accrued real estate taxes 95,551 125,210 86,952 36,988 66,673 distributions payable 103,628 103,620 103,621 100,880 88,786 other liabilities (b) 179,552 176,334 186,143 197,021 193,052 total liabilities 4,271,014 4,305,763 4,308,736 4,176,171 3,710,529 equity common shares of beneficial interest 1,156 1,156 1,156 1,127 1,126 additional paid-in capital 5,897,454 5,893,623 5,890,792 5,396,267 5,363,530 distributions in excess of net income attributable to common shareholders (581,532 ) (525,127 ) (452,865 ) (848,074 ) (829,453 ) treasury shares (328,684 ) (329,027 ) (328,975 ) (329,521 ) (333,974 ) accumulated other comprehensive loss (c) (1,774 ) (2,632 ) (3,001 ) (3,370 ) (3,739 ) total common equity 4,986,620 5,037,993 5,107,107 4,216,429 4,197,490 non-controlling interests 70,301 70,369 70,173 70,110 68,765 total equity 5,056,921 5,108,362 5,177,280 4,286,539 4,266,255 total liabilities and equity $9,327,935 $9,414,125 $9,486,016 $8,462,710 $7,976,784 (a) includes net deferred charges of: $8,413 $8,961 $307 $693 $969 (b) includes deferred revenues of: $304 $331 $358 $384 $334 (c) represents the unrealized net loss and unamortized prior service costs on post retirement obligations, and unrealized net 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, 2022 2021 2022 2021 net income attributable to common shareholders $45,709 $212,898 $653,613 $303,907 real estate depreciation and amortization 144,105 114,007 565,913 410,767 adjustments for unconsolidated joint ventures — 2,688 2,709 10,591 income allocated to non-controlling interests 1,762 4,961 7,895 8,469 gain on sale of operating property — (174,384 ) (36,372 ) (174,384 ) gain on acquisition of unconsolidated joint venture interests — — (474,146 ) — funds from operations $191,576 $160,170 $719,612 $559,350 less: recurring capitalized expenditures (29,033 ) (22,398 ) (90,715 ) (73,603 ) adjusted funds from operations $162,543 $137,772 $628,897 $485,747 weighted average number of common shares outstanding: eps diluted 108,512 105,448 108,388 102,829 ffo/affo diluted 110,117 106,322 109,261 103,747 three months ended december 31, twelve months ended december 31, 2022 2021 2022 2021 total earnings per common share - diluted $0.42 $2.02 $6.04 $2.96 real estate depreciation and amortization 1.31 1.07 5.16 3.96 adjustments for unconsolidated joint ventures — 0.03 0.02 0.09 income allocated to non-controlling interests 0.01 0.03 0.04 0.06 gain on sale of operating property — (1.64 ) (0.33 ) (1.68 ) gain on acquisition of unconsolidated joint venture interests — — (4.34 ) — ffo per common share - diluted $1.74 $1.51 $6.59 $5.39 less: recurring capitalized expenditures (0.26 ) (0.21 ) (0.83 ) (0.71 ) affo per common share - diluted $1.48 $1.30 $5.76 $4.68 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, from real estate transactions not sold as of quarter close 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: 1q23 range 2023 range low high low high expected earnings per common share - diluted $0.36 $0.40 $1.53 $1.83 expected real estate depreciation and amortization 1.26 1.26 5.12 5.12 expected income allocated to non-controlling interests 0.01 0.01 0.05 0.05 expected ffo per share - diluted $1.63 $1.67 $6.70 $7.00 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 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. 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, 2022 2021 2022 2021 net income $47,471 $217,859 $661,508 $312,376 less: fee and asset management income (931 ) (2,815 ) (5,188 ) (10,532 ) less: interest and other income (138 ) (191 ) (3,019 ) (1,223 ) less: income/(loss) on deferred compensation plans (8,813 ) (5,186 ) 19,637 (14,369 ) plus: property management expense 7,373 7,139 28,601 26,339 plus: fee and asset management expense 426 1,201 2,516 4,511 plus: general and administrative expense 15,887 14,940 60,413 59,368 plus: interest expense 30,668 24,582 113,424 97,297 plus: depreciation and amortization expense 147,271 116,503 577,020 420,692 plus: expense/(benefit) on deferred compensation plans 8,813 5,186 (19,637 ) 14,369 less: gain on sale of operating properties — (174,384 ) (36,372 ) (174,384 ) less: gain on acquisition of unconsolidated joint venture interests — — (474,146 ) — less: equity in income of joint ventures — (3,125 ) (3,048 ) (9,777 ) plus: income tax expense 753 601 2,966 1,893 noi $248,780 $202,310 $924,675 $726,560 "same property" communities $197,575 $178,163 $753,204 $656,985 non-"same property" communities 48,713 20,238 164,621 51,041 development and lease-up communities 1,025 — 1,255 8 hurricane expenses — — (1,000 ) — other 1,467 3,909 6,595 18,526 noi $248,780 $202,310 $924,675 $726,560 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 acquisition 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, as well as income (loss) allocated to non-controlling interests. 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, 2022 2021 2022 2021 net income attributable to common shareholders $45,709 $212,898 $653,613 $303,907 plus: interest expense 30,668 24,582 113,424 97,297 plus: depreciation and amortization expense 147,271 116,503 577,020 420,692 plus: income allocated to non-controlling interests 1,762 4,961 7,895 8,469 plus: income tax expense 753 601 2,966 1,893 plus: hurricane expenses — — 1,000 — less: gain on sale of operating properties — (174,384 ) (36,372 ) (174,384 ) less: gain on acquisition of unconsolidated joint venture interests — — (474,146 ) — less: equity in income of joint ventures — (3,125 ) (3,048 ) (9,777 ) adjusted ebitda $226,163 $182,036 $842,352 $648,097 annualized adjusted ebitda $904,652 $728,144 $842,352 $648,097 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, 2022 2021 2022 2021 unsecured notes payable $3,188,976 $3,170,054 $3,242,448 $3,168,649 secured notes payable 514,940 — 386,096 — total debt 3,703,916 3,170,054 3,628,544 3,168,649 less: cash and cash equivalents (3,562 ) (385,194 ) (186,178 ) (329,967 ) net debt $3,700,354 $2,784,860 $3,442,366 $2,838,682 net debt to annualized adjusted ebitda: three months ended december 31, twelve months ended december 31, 2022 2021 2022 2021 net debt $3,700,354 $2,784,860 $3,442,366 $2,838,682 annualized adjusted ebitda 904,652 728,144 842,352 648,097 net debt to annualized adjusted ebitda 4.1x 3.8x 4.1x 4.4x camden 2023 financial outlook as of february 2, 2023 (unaudited) earnings guidance - per diluted share expected ffo per share - diluted $6.70 - $7.00 "same property" communities number of units - 2023 48,463 2022 base net operating income $790 million total revenue growth 4.10% - 6.10% total expense growth 4.75% - $6.25% net operating income growth 3.50% - 6.50% impact from 1% change in noi growth is approximately $0.072 / share 2023 assumptions earned-in rent growth as of december 31, 2022 & loss to lease capture 5.00% december 2022 to december 2023 assumed market rent growth 3.00% occupancy 95.7% rental income as a % of property revenues 89% other income growth 1.50% other income as a % of property revenues 11% property tax growth 6.50% property tax as a % of property expenses 37% insurance growth 12.50% insurance growth as a % of property expenses 6% capitalized expenditures recurring $96 - $100 million revenue enhancing capex, repositions, redevelopment, and repurposes (a) $93 - $97 million non - recurring capital expenditures $26 - $28 million acquisitions/dispositions acquisition volume (consolidated on balance sheet) $0 - $500 million disposition volume (consolidated on balance sheet) $0 - $500 million development development starts (consolidated on balance sheet) $250 - $600 million development spend (consolidated on balance sheet) $275 - $305 million non-property income non-property income $2 - $3 million includes: fee and asset management income and interest and other income corporate expenses general and administrative expenses $60 - $64 million property management expense $31 - $35 million fee and asset management expense $1 - $2 million corporate g&a depreciation/amortization $12 - $14 million income tax expense $2 - $4 million capital expensed interest $135 - $139 million capitalized interest $19 - $21 million (a) capital expenditures that improve a community's cash flow and competitive position, including kitchen and bath upgrades or other new amenities, additional leasable space, and our smart access solution.
