Camden Property Trust Announces 2017 Operating Results, 2018 Financial Outlook, and First Quarter 2018 Dividend

|Business Wire|About: CPT

HOUSTON--(BUSINESS WIRE)-- Camden Property Trust (CPT) announced today operating results for the three and twelve months ended December 31, 2017. 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, 2017 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         2017     2016         2017     2016
EPS $0.91     $0.45 $2.13     $9.05
FFO $1.18 $1.15 $4.53 $4.64
AFFO         $0.97     $0.98         $3.84     $3.99
 

EPS, FFO and AFFO for the twelve months ended December 31, 2017 included approximately $0.05 per diluted share in expenses related to Hurricanes Harvey and Irma.

 
        Quarterly Growth     Sequential Growth     Year-to-Date Growth
Same Property Results         4Q17 vs. 4Q16     4Q17 vs. 3Q17     2017 vs. 2016
Revenues 3.0% (0.2)% 2.9%
Expenses 6.3% (4.9)% 4.1%
Net Operating Income ("NOI")         1.4%     2.5%     2.2%
 
 
Same Property Results         4Q17     4Q16     3Q17
Occupancy         95.7 %     94.8 %     95.9 %
 

“We are pleased to report another strong quarter of performance, with earnings and operating results in line with our expectations,” said Richard J. Campo, Camden’s Chairman and CEO. “We expect 2018 to be another good year for Camden and the multifamily industry.”

For 2017, the Company defines same property communities as communities owned and stabilized as of January 1, 2016, excluding 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.

Development Activity

During the quarter, lease-up was completed at Camden Lincoln Station in Denver, CO, and construction commenced at Camden Downtown I in Houston, TX.

 

Development Communities - Construction Completed and Projects in Lease-Up ($ in millions)

 
            Total     Total     % Leased
Community Name (NDIX)         Location     Units     Cost    

as of 1/30/2018

Camden NoMa II         Washington, DC     405     $107.2     68%
Total               405     $107.2      
 
 

Development Communities - Construction Ongoing ($ in millions)

 
            Total       Total       % Leased
Community Name       Location       Units       Budget      

as of 1/30/2018

Camden Shady Grove Rockville, MD 457 $116.0

59%

Camden McGowen Station Houston, TX 315 90.0
Camden Washingtonian Gaithersburg, MD 365 90.0
Camden North End I Phoenix, AZ 441 105.0
Camden Grandview II Charlotte, NC 28 21.0
Camden RiNo Denver, CO 233 75.0
Camden Downtown I       Houston, TX       271       132.0        
Total               2,110       $629.0        
 

Acquisition/Disposition Activity

On December 12, 2017, Camden sold Camden Miramar, its student housing community located in Corpus Christi, TX, for approximately $78 million.

Subsequent to quarter-end, the Company acquired Camden Pier District, a 358-home apartment community located in St. Petersburg, FL, for a total purchase price after closing costs of approximately $127 million.

Earnings Guidance

Camden provided initial earnings guidance for 2018 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for first quarter 2018 as detailed below.

 
        1Q18     2018     2018
Per Diluted Share         Range     Range     Midpoint
EPS $0.40 - $0.44 $1.68 - $1.88 $1.78
FFO         $1.11 - $1.15     $4.62 - $4.82     $4.72
 
 
        2018     2018
Same Property Growth         Range     Midpoint
Revenues 2.5% - 3.5% 3.0%
Expenses 3.5% - 4.5% 4.0%
NOI         1.5% - 3.5%     2.5%
 

For 2018, the Company defines same property communities as communities owned and stabilized as of January 1, 2017, excluding properties held for sale and properties under redevelopment. 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 2018 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 2018 dividend of $0.77 per common share, which is a 2.7% increase over the Company's prior quarterly dividend of $0.75 per share. The dividend is payable on April 17, 2018 to shareholders of record as of March 30, 2018. 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 2, 2018 at 10:00 AM CT
Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061
Passcode: 2881376

Webcast: http://services.choruscall.com/links/cpt180202.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 (the “Company”) 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 engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns interests in and operates 156 properties containing 53,391 apartment homes across the United States. Upon completion of 7 properties currently under development, the Company’s portfolio will increase to 55,501 apartment homes in 163 properties. Camden was recently named by FORTUNE® Magazine for the tenth consecutive year as one of the “100 Best Companies to Work For” in America, ranking #22.

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,
2017       2016 2017       2016

OPERATING DATA

       
Property revenues
Rental revenues $197,278 $186,461 $770,540 $750,597
Other property revenues 32,549       30,678   130,356       125,850  
Total property revenues 229,827       217,139   900,896       876,447  
 
Property expenses
Property operating and maintenance (a) 53,629 49,976 217,817 206,780
Real estate taxes 27,009       23,700   110,925       104,575  
Total property expenses 80,638       73,676   328,742       311,355  
 
Non-property income
Fee and asset management 2,370 1,641 8,176 6,864
Interest and other income 1,432 836 3,011 2,202
Income on deferred compensation plans 4,902       730   16,608       5,511  
Total non-property income 8,704       3,207   27,795       14,577  
 
Other expenses
Property management 5,991 5,978 25,773 25,125
Fee and asset management 1,085 987 3,903 3,848
General and administrative (b) 13,002 12,579 50,587 47,415
Interest 20,618 23,209 86,750 93,145
Depreciation and amortization 68,193 62,767 263,974 250,146
Expense on deferred compensation plans 4,902       730   16,608       5,511  
Total other expenses 113,791       106,250   447,595       425,190  
 
Loss on early retirement of debt (323 )
Gain on sale of operating properties, including land 43,231 43,231 295,397
Equity in income of joint ventures (c) 1,965       2,073   6,822       7,125  
Income from continuing operations before income taxes 89,298 42,493 202,084 457,001
Income tax expense (216 )     (413 ) (1,224 )     (1,617 )
Income from continuing operations 89,082 42,080 200,860 455,384
Income from discontinued operations 7,605
Gain on sale of discontinued operations, net of tax               375,237  
Net income 89,082 42,080 200,860 838,226
Less income allocated to non-controlling interests from
continuing operations
(1,093 )     (1,187 ) (4,438 )     (18,403 )
Net income attributable to common shareholders $87,989       $40,893   $196,422       $819,823  
 

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Net income $89,082 $42,080 $200,860 $838,226
Other comprehensive income
Unrealized gain (loss) on cash flow hedging activities (64 ) 1,690
Unrealized gain (loss) and unamortized prior service cost on post retirement obligation (20 ) (80 ) (20 ) (80 )

Reclassification of net loss on cash flow hedging activities, prior service cost and net loss

on post retirement obligation

34       33   136       130  
Comprehensive income 89,032 42,033 202,666 838,276
Less income allocated to non-controlling interests from continuing operations (1,093 )     (1,187 ) (4,438 )     (18,403 )
Comprehensive income attributable to common shareholders $87,939       $40,846   $198,228       $819,873  
 

PER SHARE DATA

 
Total earnings per common share - basic $0.92 $0.45 $2.14 $9.08
Total earnings per common share - diluted 0.91 0.45 2.13 9.05
Earnings per share from continuing operations - basic 0.92 0.45 2.14 4.81
Earnings per share from continuing operations - diluted 0.91 0.45 2.13 4.79
 
Weighted average number of common shares outstanding:
Basic 94,905 89,745 91,499 89,580
Diluted 97,068 90,844 92,515 89,903
 

(a)

Includes approximately $3.9 million in storm-related expenses related to Hurricanes Harvey and Irma for the twelve months ended December 31, 2017.

(b)

Includes approximately $0.7 million in storm-related expenses related to Hurricanes Harvey and Irma for the twelve months ended December 31, 2017.

(c)

Includes approximately $0.4 million in storm-related expenses related to Hurricanes Harvey and Irma for the twelve months ended December 31, 2017.

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,
2017     2016 2017     2016

FUNDS FROM OPERATIONS

       
 
Net income attributable to common shareholders (a) $87,989 $40,893 $196,422 $819,823
Real estate depreciation and amortization 66,448 61,214 257,540 243,908
Real estate depreciation from discontinued operations 4,327
Adjustments for unconsolidated joint ventures 2,253 2,250 8,903 9,194
Income allocated to non-controlling interests 1,093 1,187 4,438 18,403
Gain on sale of operating properties, net of tax (43,231 ) (43,231 ) (294,954 )
Gain on sale of discontinued operations, net of tax               (375,237 )
Funds from operations $114,552       $105,544   $424,072       $425,464  
 
Less: recurring capitalized expenditures (b) (20,783 ) (15,475 ) (64,758 ) (59,084 )
               
Adjusted funds from operations - diluted $93,769       $90,069   $359,314       $366,380  
 

PER SHARE DATA

Funds from operations - diluted $1.18 $1.15 $4.53 $4.64
Adjusted funds from operations - diluted 0.97 0.98 3.84 3.99
Distributions declared per common share 0.75 0.75 3.00 3.00
Special Distributions declared per common share 4.25
 
Weighted average number of common shares outstanding:
FFO/AFFO - diluted 97,068 91,926 93,594 91,794
 

PROPERTY DATA

Total operating properties (end of period) (c) 155 152 155 152
Total operating apartment homes in operating properties (end of period) (c) 53,033 52,793 53,033 52,793
Total operating apartment homes (weighted average) 46,533 45,455 46,210 48,505
Total operating apartment homes - excluding discontinued operations (weighted average) 46,533 45,455 46,210 46,934
 

(a)

Net income attributable to common shareholders for the year ended December 31, 2017 included approximately $5.0 million of storm-related expenses related to Hurricanes Harvey and Irma.

(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,
2017
    Sep 30,
2017
    Jun 30,
2017
    Mar 31,
2017
    Dec 31,
2016
ASSETS                
Real estate assets, at cost
Land $1,021,031 $1,016,097 $1,008,459 $984,523 $967,375
Buildings and improvements 6,269,481       6,269,561       6,199,435       6,071,203       5,967,023  
7,290,512 7,285,658 7,207,894 7,055,726 6,934,398
Accumulated depreciation (2,118,839 )     (2,080,989 )     (2,016,259 )     (1,952,809 )     (1,890,656 )
Net operating real estate assets 5,171,673 5,204,669 5,191,635 5,102,917 5,043,742
Properties under development, including land 377,231 363,481 373,294 377,107 442,292
Investments in joint ventures 27,237       28,420       29,665       30,062       30,254  
Total real estate assets 5,576,141 5,596,570 5,594,594 5,510,086 5,516,288
Accounts receivable – affiliates 24,038 23,620 23,592 23,634 24,028
Other assets, net (a) 195,764 189,253 155,784 147,922 142,010
Short-term investments (b) 100,000
Cash and cash equivalents 368,492 350,274 16,318 245,529 237,364
Restricted cash 9,313       9,178       8,312       8,175       8,462  
Total assets $6,173,748       $6,168,895       $5,798,600       $5,935,346       $6,028,152  
 
 
 
LIABILITIES AND EQUITY
Liabilities
Notes payable
Unsecured $1,338,628 $1,338,117 $1,437,608 $1,583,819 $1,583,236
Secured 865,970 866,134 866,292 866,476 897,352
Accounts payable and accrued expenses 128,313 127,557 116,754 120,086 137,813
Accrued real estate taxes 51,383 70,027 48,559 24,682 49,041
Distributions payable 72,943 72,962 69,347 69,326 69,161
Other liabilities (c) 154,567       154,506       134,851       123,654       118,959  
Total liabilities 2,611,804 2,629,303 2,673,411 2,788,043 2,855,562
 
Commitments and contingencies
Non-qualified deferred compensation share awards 77,230 73,015 84,050 75,704 77,037
 
Equity
Common shares of beneficial interest 1,028 1,028 978 978 978
Additional paid-in capital 4,137,161 4,134,206 3,678,660 3,675,737 3,678,277
Distributions in excess of net income attributable to common shareholders (368,703 ) (383,584 ) (351,910 ) (317,642 ) (289,180 )
Treasury (TSRMF) shares, at cost (364,066 ) (364,736 ) (364,785 ) (365,923 ) (373,339 )
Accumulated other comprehensive loss (d) (57 )     (7 )     (1,795 )     (1,829 )     (1,863 )
Total common equity 3,405,363 3,386,907 2,961,148 2,991,321 3,014,873
Non-controlling interests 79,351       79,670       79,991       80,278       80,680  
Total equity 3,484,714       3,466,577       3,041,139       3,071,599       3,095,553  
Total liabilities and equity $6,173,748       $6,168,895       $5,798,600       $5,935,346       $6,028,152  
 
 
 
 
 
(a) Includes:
net deferred charges of: $1,125 $1,312 $1,487 $1,683 $1,915
fair value adjustment of derivative instruments: $1,690 $1,754 $— $— $—
 
(b) Our short-term investments, at December 31, 2016, consisted wholly of a certificate of deposit that had a maturity date of January 4, 2017.
 
(c) Includes deferred revenues of: $426 $1,463 $513 $1,455 $1,541
 
(d) Represents the unrealized net loss and unamortized prior service costs on post retirement obligations, and unrealized gain on cash flow hedging activities.
 
 

CAMDEN

2018 FINANCIAL OUTLOOK

AS OF FEBRUARY 1, 2018

 

(Unaudited)

Earnings Guidance - Per Diluted Share          
Expected FFO per share - diluted $4.62 - $4.82
 
"Same Property" Communities
Number of Units 41,968
2017 Base Net Operating Income $509 million
Total Revenue Growth 2.5% - 3.5%
Total Expense Growth 3.5% - 4.5%
Net Operating Income Growth 1.5% - 3.5%

Impact from 1% change in NOI Growth is approximately $0.052 / share

 
Physical Occupancy 95.5%
 
Capitalized Expenditures
Recurring $65 - $69 million
Revenue Enhancing Capex and Repositions (a) $37 - $41 million
Redevelopments (b) $28 - $32 million
 
Acquisitions/Dispositions
Acquisition Volume (consolidated on balance sheet) $400 - $600 million
Disposition Volume (consolidated on balance sheet) $0 - $200 million
 
Development
Development Starts (consolidated on balance sheet) $100 - $300 million
Development Spend (consolidated on balance sheet) $185 - $215 million
 
Equity in Income of Joint Ventures (FFO) $15 - $17 million
 
Non-Property Income
Non-Property Income, Net $3 - $5 million
Includes: Fee and asset management income (including fees from joint ventures), net of expenses,
and interest and other income
 
Corporate Expenses
General and administrative expense $47 - $51 million
Property management expense $25 - $27 million
Corporate G&A Depreciation/Amortization $6 - $8 million
 
Capital
Expected Debt Capital Transactions $300 - $400 million
Expensed Interest $85 - $89 million
Capitalized Interest $12 - $14 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.

(b)

Redevelopments are capital expenditures that improve a community's cash flow and competitive position, through extensive unit, exterior building, common area, and amenity upgrades.

 

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.

 

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 gains (or losses) associated with the sale of previously depreciated operating properties, real estate depreciation and amortization, impairments of depreciable assets, and adjustments for unconsolidated joint ventures. 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 operating properties, 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,

2017   2016 2017   2016
Net income attributable to common shareholders $ 87,989   $ 40,893 $ 196,422   $ 819,823
Real estate depreciation and amortization 66,448 61,214 257,540 243,908
Real estate depreciation from discontinued operations 4,327
Adjustments for unconsolidated joint ventures 2,253 2,250 8,903 9,194
Income allocated to non-controlling interests 1,093 1,187 4,438 18,403
Gain on sale of operating properties, net of tax (43,231 ) (43,231 ) (294,954 )
Gain on sale of discontinued operations, net of tax                 (375,237 )
Funds from operations $ 114,552     $ 105,544   $ 424,072   $ 425,464  
 
Less: recurring capitalized expenditures (20,783 ) (15,475 ) (64,758 ) (59,084 )
           
Adjusted funds from operations $ 93,769     $ 90,069   $ 359,314     $ 366,380  
 
Weighted average number of common shares outstanding:
EPS diluted 97,068 90,844 92,515 89,903
FFO/AFFO diluted 97,068 91,926 93,594 91,794
 
Total earnings per common share - diluted $ 0.91 $ 0.45 $ 2.13 $ 9.05
FFO per common share - diluted $ 1.18 $ 1.15 $ 4.53 $ 4.64
AFFO per common share - diluted $ 0.97 $ 0.98 $ 3.84 $ 3.99
 

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:

 

1Q18 Range

2018 Range

Low   High Low   High
Expected earnings per common share - diluted $ 0.40 $ 0.44 $ 1.68 $ 1.88
Expected real estate depreciation and amortization 0.67 0.67 2.81 2.81
Expected adjustments for unconsolidated joint ventures 0.03 0.03 0.09 0.09
Expected income allocated to non-controlling interests   0.01       0.01     0.04       0.04  
Expected FFO per share - diluted $ 1.11 $ 1.15 $ 4.62 $ 4.82
 

Note:  This table contains forward-looking statements. Please see the paragraph regarding forward-looking statements earlier in this document.

 

CAMDEN

 

NON-GAAP FINANCIAL MEASURES

DEFINITIONS & RECONCILIATIONS
(In thousands, except per share amounts)
     

(Unaudited)

 

Net Operating Income (NOI)

 

NOI is defined by the Company as total property income 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 supplemental. 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,

2017   2016 2017   2016
Net income $ 89,082   $ 42,080 $ 200,860   $ 838,226
Less: Fee and asset management income (2,370 ) (1,641 ) (8,176 ) (6,864 )
Less: Interest and other income (1,432 ) (836 ) (3,011 ) (2,202 )
Less: Income on deferred compensation plans (4,902 ) (730 ) (16,608 ) (5,511 )
Plus: Property management expense 5,991 5,978 25,773 25,125
Plus: Fee and asset management expense 1,085 987 3,903 3,848
Plus: General and administrative expense 13,002 12,579 50,587 47,415
Plus: Interest expense 20,618 23,209 86,750 93,145
Plus: Depreciation and amortization expense 68,193 62,767 263,974 250,146
Plus: Expense on deferred compensation plans 4,902 730 16,608 5,511
Plus: Loss on Early Retirement of Debt 323
Less: Gain on sale of operating properties, including land (43,231 ) (43,231 ) (295,397 )
Less: Equity in income of joint ventures (1,965 ) (2,073 ) (6,822 ) (7,125 )
Plus: Income tax expense 216 413 1,224 1,617
Less: Income from discontinued operations (7,605 )
Less: Gain on sale of discontinued operations, net of tax                   (375,237 )
Net Operating Income (NOI) $ 149,189 $ 143,463 $ 572,154 $ 565,092
 
"Same Property" Communities $ 131,049 $ 129,266 $ 512,123 $ 501,054
Non-"Same Property" Communities 13,067 9,990 48,799 31,376
Development and Lease-Up Communities 1,799 3,635
Hurricane Expenses (3,944 )
Dispositions/Other   3,274       4,207     11,541       32,662  
Net Operating Income (NOI) $ 149,189 $ 143,463 $ 572,154 $ 565,092
 

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, net of tax, 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. 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,

2017   2016 2017   2016
Net income attributable to common shareholders $ 87,989 $ 40,893 $ 196,422 $819,823
Plus: Interest expense 20,618 23,209 86,750 93,145
Plus: Depreciation and amortization expense 68,193 62,767 263,974 250,146
Plus: Income allocated to non-controlling interests from continuing operations 1,093 1,187 4,438 18,403
Plus: Income tax expense 216 413 1,224 1,617
Plus: Real estate depreciation from discontinued operations 4,327
Less: Gain on sale of operating properties, including land (43,231 ) (43,231 ) (295,397 )
Plus: Loss on Early Retirement of Debt 323
Less: Equity in income of joint ventures (1,965 ) (2,073 ) (6,822 ) (7,125 )
Less: Gain on sale of discontinued operations, net of tax                 (375,237 )
Adjusted EBITDA $ 132,913 $ 126,396 $ 503,078 $509,702

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Camden Property Trust
Kim Callahan, 713-354-2549

Source: Camden Property Trust

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