Camden property trust announces first quarter 2021 operating results
Houston--(business wire)--camden property trust (nyse:cpt) (the "company") announced today operating results for the three months ended march 31, 2021. net income attributable to common shareholders (“eps”), funds from operations (“ffo”), and adjusted funds from operations (“affo”) for the three months ended march 31, 2021 are detailed below. a reconciliation of eps to ffo is included in the financial tables accompanying this press release. three months ended march 31 per diluted share 2021 2020 eps $0.31 $0.43 ffo $1.24 $1.35 affo $1.12 $1.20 quarterly growth sequential growth same property results 1q21 vs. 1q20 1q21 vs. 4q20 revenues (0.4)% 0.1% expenses 5.4% 0.3% net operating income ("noi") (3.5)% 0.1% 1q21 1q20 4q20 occupancy 96.0% 96.0% 95.5% 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. april collections same property scheduled rents* april 2021 april 2020 1q21 1q20 collected 98.0% 94.3% 98.4% 97.9% deferred/payment plan arranged —% 2.5% —% —% delinquent 2.0% 3.2% 1.6% 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. operating statistics - same property portfolio new lease and renewal data - date signed (1) (2) april 2021* april 2020 1q21(2) 1q20(2) new lease rates 4.5% (2.5)% (0.8)% 0.4% renewal rates 4.7% 0.1% 3.4% 4.3% blended rates 4.6% (0.8)% 1.2% 2.5% new leases 1,692 1,366 1,734 1,529 renewals 1,590 2,568 1,604 1,768 total leases 3,282 3,934 3,338 3,297 new lease and renewal data - date effective (3) (4) april 2021* april 2020 1q21(4) 1q20(4) new lease rates 1.7% (1.4)% (2.2)% 0.2% renewal rates 3.1% 4.4% 2.9% 4.8% blended rates 2.4% 2.1% 0.2% 2.4% new leases 1,456 1,124 1,539 1,463 renewals 1,464 1,720 1,378 1,405 total leases 2,920 2,844 2,917 2,868 *data as of april 26, 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 april 2021* april 2020 1q21 1q20 occupancy 96.6% 95.5% 96.0% 96.0% annualized gross turnover 47% 47% 45% 46% annualized net turnover 37% 37% 35% 37% *data as of april 26, 2021 development activity during the quarter, construction commenced at camden durham in durham, nc, and leasing began at two communities: camden lake eola in orlando, fl, and camden buckhead in atlanta, ga. subsequent to quarter-end, leasing began at camden hillcrest in san diego, ca. development communities - construction completed and projects in lease-up ($ in millions) total total % leased community name location homes cost as of 4/26/2021 camden downtown i houston, tx 271 $131.5 72 % camden rino denver, co 233 78.9 96 % camden cypress creek ii (jv) cypress, tx 234 31.9 87 % total 738 $242.3 development communities - construction ongoing ($ in millions) total total % leased community name location homes estimated cost as of 4/26/2021 camden north end ii phoenix, az 343 $90.0 48 % camden lake eola orlando, fl 360 125.0 11 % camden buckhead atlanta, ga 366 160.0 15 % camden hillcrest san diego, ca 132 95.0 3 % 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 2,608 $910.0 liquidity analysis as of march 31, 2021, camden had approximately $1.2 billion of liquidity comprised of approximately $333 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 $358 million left to fund under its existing wholly-owned development pipeline. as of march 31, 2021, camden had outstanding letters of credit totaling approximately $12 million, which reduced the availability under its unsecured credit facility to $888 million. earnings guidance camden updated its earnings guidance for 2021 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for second quarter 2021 as detailed below. 2q21 2021 2021 midpoint per diluted share range range current prior change eps $0.25 - $0.31 $0.84 - $1.14 $0.99 $0.91 $0.08 ffo $1.22 - $1.28 $4.94 - $5.24 $5.09 $5.00 $0.09 2021 2021 midpoint same property growth range current prior change revenues 0.85% - 2.35% 1.60% 0.75% 0.85% expenses 3.50% - 4.30% 3.90% 3.50% 0.40% noi (1.10)% - 1.60% 0.25% (0.85)% 1.10% 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. conference call friday, april 30, 2021 at 10:00 am ct domestic dial-in number: (888) 317-6003; international dial-in number: (412) 317-6061 passcode: 4025578 webcast: https://services.choruscall.com/links/cpt210430.html 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 167 properties containing 56,851 apartment homes across the united states. upon completion of 8 properties currently under development, the company’s portfolio will increase to 59,459 apartment homes in 175 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. 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 march 31, 2021 2020 operating data property revenues (a) $267,568 $265,879 property expenses property operating and maintenance 63,479 59,956 real estate taxes 37,453 34,180 total property expenses 100,932 94,136 non-property income fee and asset management 2,206 2,527 interest and other income 332 329 income/(loss) on deferred compensation plans 3,626 (14,860 ) total non-property income 6,164 (12,004 ) other expenses property management 6,124 6,527 fee and asset management 1,132 843 general and administrative 14,222 13,233 interest 23,644 19,707 depreciation and amortization 93,141 91,859 expense/(benefit) on deferred compensation plans 3,626 (14,860 ) total other expenses 141,889 117,309 gain on sale of land — 382 equity in income of joint ventures 1,914 2,122 income from continuing operations before income taxes 32,825 44,934 income tax expense (352 ) (467 ) net income 32,473 44,467 less income allocated to non-controlling interests (1,126 ) (1,183 ) net income attributable to common shareholders $31,347 $43,284 consolidated statements of comprehensive income net income $32,473 $44,467 other comprehensive income reclassification of net loss on cash flow hedging activities, prior service cost and net loss on post retirement obligation 373 366 comprehensive income 32,846 44,833 less income allocated to non-controlling interests (1,126 ) (1,183 ) comprehensive income attributable to common shareholders $31,720 $43,650 per share data total earnings per common share - basic $0.31 $0.43 total earnings per common share - diluted 0.31 0.43 weighted average number of common shares outstanding: basic 99,547 99,298 diluted 99,621 99,380 (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 march 31, 2021, we recognized $267.6 million of property revenue which consisted of approximately $235.8 million of rental revenue and approximately $31.8 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 $265.9 million recognized for the three months ended march 31, 2020, made up of approximately $236.6 million of rental revenue and approximately $29.3 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 $7.7 million and $6.9 million for the three months ended march 31, 2021 and 2020, respectively. 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 march 31, 2021 2020 funds from operations net income attributable to common shareholders $31,347 $43,284 real estate depreciation and amortization 90,707 89,511 adjustments for unconsolidated joint ventures 2,599 2,242 income allocated to non-controlling interests 1,126 1,282 funds from operations $125,779 $136,319 less: recurring capitalized expenditures (a) (12,680 ) (14,825 ) adjusted funds from operations $113,099 $121,494 per share data funds from operations - diluted $1.24 $1.35 adjusted funds from operations - diluted 1.12 1.20 distributions declared per common share 0.83 0.83 weighted average number of common shares outstanding: ffo/affo - diluted 101,341 101,128 property data total operating properties (end of period) (b) 167 164 total operating apartment homes in operating properties (end of period) (b) 56,851 56,112 total operating apartment homes (weighted average) 49,439 49,017 (a) capital expenditures necessary to help preserve the value of and maintain the functionality at our communities. (b) includes joint ventures and properties held for sale, if any. note: please refer to the following pages for definitions and reconciliations of all non-gaap financial measures presented in this document. camden balance sheets (in thousands) (unaudited) mar 31, 2021 dec 31, 2020 sep 30, 2020 jun 30, 2020 mar 31, 2020 assets real estate assets, at cost land $1,233,937 $1,225,214 $1,216,942 $1,206,656 $1,206,130 buildings and improvements 7,863,707 7,763,748 7,677,676 7,597,165 7,547,150 9,097,644 8,988,962 8,894,618 8,803,821 8,753,280 accumulated depreciation (3,124,504 ) (3,034,186 ) (2,944,769 ) (2,857,124 ) (2,770,848 ) net operating real estate assets 5,973,140 5,954,776 5,949,849 5,946,697 5,982,432 properties under development, including land 541,958 564,215 522,664 514,336 467,288 investments in joint ventures 18,800 18,994 20,992 21,735 22,318 total real estate assets 6,533,898 6,537,985 6,493,505 6,482,768 6,472,038 accounts receivable – affiliates 19,502 20,158 20,152 21,432 20,344 other assets, net (a) 213,126 216,276 217,534 211,823 196,544 cash and cash equivalents 333,402 420,441 589,614 601,584 22,277 restricted cash 4,105 4,092 3,918 4,093 4,367 total assets $7,104,033 $7,198,952 $7,324,723 $7,321,700 $6,715,570 liabilities and equity liabilities notes payable unsecured $3,167,557 $3,166,625 $3,225,799 $3,224,871 $2,606,876 accounts payable and accrued expenses 159,111 175,608 183,654 167,453 156,841 accrued real estate taxes 33,155 66,156 87,159 62,499 32,365 distributions payable 84,282 84,147 84,137 84,138 84,112 other liabilities (b) 185,852 189,829 177,967 172,172 164,052 total liabilities 3,629,957 3,682,365 3,758,716 3,711,133 3,044,246 equity common shares of beneficial interest 1,070 1,069 1,068 1,068 1,069 additional paid-in capital 4,588,056 4,581,710 4,577,813 4,574,387 4,569,995 distributions in excess of net income attributable to common shareholders (842,628 ) (791,079 ) (737,556 ) (689,809 ) (623,570 ) treasury shares (335,511 ) (341,412 ) (341,831 ) (341,637 ) (342,778 ) accumulated other comprehensive income (loss) (c) (5,010 ) (5,383 ) (5,431 ) (5,797 ) (6,163 ) total common equity 3,405,977 3,444,905 3,494,063 3,538,212 3,598,553 non-controlling interests 68,099 71,682 71,944 72,355 72,771 total equity 3,474,076 3,516,587 3,566,007 3,610,567 3,671,324 total liabilities and equity $7,104,033 $7,198,952 $7,324,723 $7,321,700 $6,715,570 (a) includes net deferred charges of: $2,031 $2,299 $2,686 $3,031 $3,399 (b) includes deferred revenues of: $256 $284 $314 $344 $375 (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 march 31, 2021 2020 net income attributable to common shareholders $31,347 $43,284 real estate depreciation and amortization 90,707 89,511 adjustments for unconsolidated joint ventures 2,599 2,242 income allocated to non-controlling interests 1,126 1,282 funds from operations $125,779 $136,319 less: recurring capitalized expenditures (12,680 ) (14,825 ) adjusted funds from operations $113,099 $121,494 weighted average number of common shares outstanding: eps diluted 99,621 99,380 ffo/affo diluted 101,341 101,128 three months ended march 31, 2021 2020 total earnings per common share - diluted $0.31 $0.43 real estate depreciation and amortization 0.89 0.89 adjustments for unconsolidated joint ventures 0.03 0.02 income allocated to non-controlling interests 0.01 0.01 ffo per common share - diluted $1.24 $1.35 less: recurring capitalized expenditures (0.12 ) (0.15 ) affo per common share - diluted $1.12 $1.20 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: 2q21 range 2021 range low high low high expected earnings per common share - diluted $0.25 $0.31 $0.84 $1.14 expected real estate depreciation and amortization 0.93 0.93 3.95 3.95 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 $1.22 $1.28 $4.94 $5.24 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 march 31, 2021 2020 net income $32,473 $44,467 less: fee and asset management income (2,206 ) (2,527 ) less: interest and other income (332 ) (329 ) less: (income)/loss on deferred compensation plans (3,626 ) 14,860 plus: property management expense 6,124 6,527 plus: fee and asset management expense 1,132 843 plus: general and administrative expense 14,222 13,233 plus: interest expense 23,644 19,707 plus: depreciation and amortization expense 93,141 91,859 plus: expense/(benefit) on deferred compensation plans 3,626 (14,860 ) less: gain on sale of land — (382 ) less: equity in income of joint ventures (1,914 ) (2,122 ) plus: income tax expense 352 467 noi $166,636 $171,743 "same property" communities $150,483 $155,954 non-"same property" communities 14,155 14,427 development and lease-up communities 1,440 (75 ) dispositions/other 558 1,437 noi $166,636 $171,743 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 and 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 march 31, 2021 2020 net income attributable to common shareholders $31,347 $43,284 plus: interest expense 23,644 19,707 plus: depreciation and amortization expense 93,141 91,859 plus: income allocated to non-controlling interests 1,126 1,183 plus: income tax expense 352 467 less: gain on sale of land — (382 ) less: equity in income of joint ventures (1,914 ) (2,122 ) adjusted ebitda $147,696 $153,996 annualized adjusted ebitda $590,784 $615,984 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 three months ended march 31, 2021 2020 unsecured notes payable $3,167,246 $2,633,950 total debt 3,167,246 2,633,950 less: cash and cash equivalents (289,901 ) (20,184 ) net debt $2,877,345 $2,613,766 net debt to annualized adjusted ebitda: three months ended march 31, 2021 2020 net debt $2,877,345 $2,613,766 annualized adjusted ebitda 590,784 615,984 net debt to annualized adjusted ebitda 4.9 x 4.2 x
