Camden Property Trust Announces Second Quarter 2024 Operating Results

Camden Property Trust (NYSE:CPT) (the "Company") announced today operating results for the three and six months ended June 30, 2024. Net Income Attributable to Common Shareholders (“EPS”), Funds from Operations (“FFO”), Core Funds from Operations ("Core FFO"), and Core Adjusted Funds from Operations (“Core AFFO”) for the three and six months ended June 30, 2024 are detailed below. A reconciliation of EPS to FFO, Core FFO, and Core AFFO is included in the financial tables accompanying this press release.

Three Months Ended June 30,

Six Months Ended June 30,

Per Diluted Share

2024

2023

2024

2023

EPS

0.40

0.84

1.17

1.22

FFO

1.71

1.67

3.37

3.33

Core FFO

1.71

1.70

3.41

3.36

Core AFFO

1.44

1.51

2.94

3.01

Three Months Ended

2Q24 Guidance

Per Diluted Share

June 30, 2024

Midpoint

Variance

EPS

0.40

0.36

0.04

FFO

1.71

1.66

0.05

Core FFO

1.71

1.67

0.04

Quarterly Growth

Sequential Growth

Year-To-Date Growth

Same Property Results

2Q24 vs. 2Q23

2Q24 vs. 1Q24

2024 vs. 2023

Revenues

1.4

0.5

2.0

Expenses

2.5

0.8

2.7

Net Operating Income ("NOI")

0.9

0.4

1.6

Same Property Results

2Q24

2Q23

1Q24

Occupancy

95.3

95.5

95.0

For 2024, the Company defines same property communities as communities wholly-owned and stabilized since January 1, 2023, 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)

July 2024*

July 2023

2Q24

2Q23

Signed New Lease Rates

(1.6

1.6

(1.8

2.4

Signed Renewal Rates

4.0

5.2

3.7

6.0

Signed Blended Lease Rates

0.9

3.3

0.8

4.0

New Lease and Renewal Data - Date Effective (2)

July 2024*

July 2023

2Q24

2Q23

Effective New Lease Rates

(1.5

2.0

(2.6

2.3

Effective Renewal Rates

3.7

6.4

3.3

6.4

Effective Blended Lease Rates

1.2

4.1

0.0

4.0

*Preliminary data as of July 31, 2024

(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, Bad Debt and Turnover Data

July 2024*

July 2023

2Q24

2Q23

Occupancy

95.6

95.3

95.5

Bad Debt

1.7

0.8

1.5

Annualized Gross Turnover

Annualized Net Turnover

*Preliminary data as of July 31, 2024

Development Activity

During the quarter, construction was completed at Camden Woodmill Creek in The Woodlands, TX. Construction commenced at Camden South Charlotte in Charlotte, NC and Camden Blakeney in Charlotte, NC. Additionally, leasing continued at Camden Durham in Durham, NC and Camden Long Meadow Farms in Richmond, TX.

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

Total

% Leased

Community Name

Location

Homes

Cost

as of 7/31/2024

Camden Woodmill Creek

The Woodlands, TX

189

70.9

Development Communities - Construction Ongoing ($ in millions)

Total

% Leased

Community Name

Location

Homes

Estimated Cost

as of 7/31/2024

Camden Durham

Durham, NC

420

145.0

Camden Long Meadow Farms

Richmond, TX

188

75.0

Camden Village District

Raleigh, NC

369

138.0

Camden South Charlotte

Charlotte, NC

420

163.0

Camden Blakeney

Charlotte, NC

349

154.0

Total

1,746

675.0

Share Repurchase

During the quarter, Camden repurchased 44,692 common shares at an average price of $96.52 per share for a total of $4.3 million. Year to date, Camden repurchased 515,974 common shares at an average price of $96.88 for approximately $50.0 million. The Company currently has approximately $450.0 million remaining under its stock repurchase program.

Liquidity Analysis

As of June 30, 2024, Camden had nearly $1.3 billion of liquidity comprised of approximately $93.9 million in cash and cash equivalents, and $1.2 billion of availability under its unsecured credit facility. At quarter-end, the Company had approximately $297.9 million left to fund under its existing wholly-owned development pipeline.

Hurricane Impact

Subsequent to the quarter-end, Hurricane Beryl impacted several of our multifamily communities in the Houston, TX area. We are currently in the preliminary stage of assessing the effect of this event and expect the storm-related expenses for this incident to be in the range of approximately $2.0 million to $3.0 million, net of insurance proceeds. These estimates are preliminary and may change as we receive additional information.

Earnings Guidance

Camden provided initial earnings guidance for 2024 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for third quarter 2024 as detailed below. Expected EPS excludes gains, if any, from future real estate transactions.

3Q24

2024

2024 Midpoint

Per Diluted Share

Range

Current

Prior

Change

EPS

$0.31 - $0.35

$1.83 - $1.93

1.88

1.86

0.02

FFO

$1.63 - $1.67

$6.67 - $6.77

6.72

6.69

0.03

Core FFO(1)

$1.66 - $1.70

$6.74 - $6.84

6.79

6.74

0.05

(1) The Company's 2024 core FFO guidance includes approximately $0.07 per share of non-core adjustments for casualty-related expenses, legal costs, loss on early retirement of debt, severance, and expensed pursuit costs.

2024

2024 Midpoint

Same Property Growth Guidance

Range

Current

Prior

Change

Revenues

1.00% - 2.00%

1.50

0.00

Expenses

2.35% - 3.35%

2.85

3.25

(0.40

NOI

(0.25%) - 1.75%

0.75

0.50

0.25

Camden intends to update its earnings guidance to the market on a quarterly basis. Additional information on the Company’s 2024 financial outlook including key assumptions for same property growth and a reconciliation of expected EPS to expected FFO and expected Core FFO are included in the financial tables accompanying this press release.

Conference Call

Friday, August 2, 2024 at 10:00 AM CT Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061; Passcode: 5174172 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 and operates 172 properties containing 58,250 apartment homes across the United States. Upon completion of 5 properties currently under development, the Company’s portfolio will increase to 59,996 apartment homes in 177 properties. Camden has been recognized as one of the 100 Best Companies to Work For® by FORTUNE magazine for 17 consecutive years, most recently ranking #24. 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 June 30,

Six Months Ended June 30,

2024

2023

2024

2023

OPERATING DATA

Property revenues (a)

387,150

385,499

770,291

763,662

Property expenses

Property operating and maintenance

90,126

87,742

179,170

173,027

Real estate taxes

48,763

49,855

98,264

99,251

Total property expenses

138,889

137,597

277,434

272,278

Non-property income

Fee and asset management

2,606

718

3,890

1,296

Interest and other income

1,598

431

3,366

493

Income on deferred compensation plans

1,073

2,844

6,892

8,756

Total non-property income

5,277

3,993

14,148

10,545

Other expenses

Property management

9,846

8,751

19,240

17,048

Fee and asset management

475

420

918

833

General and administrative

18,154

15,863

34,847

31,219

Interest

32,227

33,578

64,764

66,421

Depreciation and amortization

145,894

143,054

290,696

285,498

Expense on deferred compensation plans

1,073

2,844

6,892

8,756

Total other expenses

207,669

204,510

417,357

409,775

Loss on early retirement of debt

—

(2,513

)

(921

)

(2,513

)

Gain on sale of operating property

—

48,919

43,806

48,919

Income from continuing operations before income taxes

45,869

93,791

132,533

138,560

Income tax expense

(1,059

)

(851

)

(1,964

)

(2,001

)

Net income

44,810

92,940

130,569

136,559

Less income allocated to non-controlling interests

(1,893

)

(1,841

)

(3,763

)

(3,543

)

Net income attributable to common shareholders

42,917

91,099

126,806

133,016

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Net income

44,810

92,940

130,569

136,559

Other comprehensive income

Unrealized gain on cash flow hedging activities

—

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

361

358

1,450

717

Comprehensive income

45,171

93,298

132,104

137,276

Less income allocated to non-controlling interests

(1,893

)

(1,841

)

(3,763

)

(3,543

)

Comprehensive income attributable to common shareholders

43,278

91,457

128,341

133,733

PER SHARE DATA

Total earnings per common share - basic

0.40

0.84

1.17

1.22

Total earnings per common share - diluted

0.40

0.84

1.17

1.22

Weighted average number of common shares outstanding:

Basic

108,406

108,663

108,556

108,616

Diluted

108,424

109,392

108,577

108,636

(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 June 30, 2024, we recognized $387.2 million of property revenue which consisted of approximately $344.6 million of rental revenue and approximately $42.6 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 $385.5 million recognized for the three months ended June 30, 2023, made up of approximately $343.1 million of rental revenue and approximately $42.4 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. For the six months ended June 30, 2024, we recognized $770.3 million of property revenue which consisted of approximately $686.2 million of rental revenue and approximately $84.1 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. This compared to the $763.7 million of property revenue recognized for the six months ended June 30, 2023, made up of approximately $680.3 million of rental revenue and approximately $83.4 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 $10.5 million and $10.3 million for the three months ended June 30, 2024 and 2023, respectively and was $21.2 million and $20.8 million for the six months ended June 30 2024 and 2023, 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 June 30,

Six Months Ended June 30,

2024

2023

2024

2023

FUNDS FROM OPERATIONS

Net income attributable to common shareholders

42,917

91,099

126,806

133,016

Real estate depreciation and amortization

142,895

140,013

284,742

279,400

Income allocated to non-controlling interests

1,893

1,841

3,763

3,543

Gain on sale of operating properties

—

(48,919

)

(43,806

)

(48,919

)

Funds from operations

187,705

184,034

371,505

367,040

Plus: Casualty-related expenses, net of (recoveries)

(1,587

)

981

(64

)

939

Plus: Severance

—

506

—

Plus: Legal costs and settlements, net of recoveries

1,114

—

1,966

Plus: Loss on early retirement of debt

—

2,513

921

2,513

Plus: Expensed development & other pursuit costs

660

471

660

471

Less: Miscellaneous (income)/expense

—

(364

)

—

(364

)

Core funds from operations

187,892

187,635

375,494

370,683

Less: recurring capitalized expenditures (a)

(29,595

)

(21,034

)

(51,620

)

(38,613

)

Core adjusted funds from operations

158,297

166,601

323,874

332,070

PER SHARE DATA

Funds from operations - diluted

1.71

1.67

3.37

3.33

Core funds from operations - diluted

1.71

1.70

3.41

3.36

Core adjusted funds from operations - diluted

1.44

1.51

2.94

3.01

Distributions declared per common share

1.03

1.00

2.06

2.00

Weighted average number of common shares outstanding:

FFO/Core FFO/Core AFFO - diluted

110,018

110,262

110,171

110,232

PROPERTY DATA

Total operating properties (end of period) (b)

172

Total operating apartment homes in operating properties (end of period) (b)

58,250

58,961

58,250

58,961

Total operating apartment homes (weighted average)

58,244

59,039

58,290

58,938

(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)

Jun 30, 2024

Mar 31, 2024

Dec 31, 2023

Sep 30, 2023

Jun 30, 2023

ASSETS

Real estate assets, at cost

Land

1,716,515

1,706,983

1,711,873

1,732,804

1,727,182

Buildings and improvements

11,148,312

11,014,440

10,993,390

10,963,667

10,848,837

12,864,827

12,721,423

12,705,263

12,696,471

12,576,019

Accumulated depreciation

(4,582,440

)

(4,439,710

)

(4,332,524

)

(4,254,388

)

(4,113,095

)

Net operating real estate assets

8,282,387

8,281,713

8,372,739

8,442,083

8,462,924

Properties under development, including land

439,758

477,481

486,864

499,761

516,543

Total real estate assets

8,722,145

8,759,194

8,859,603

8,941,844

8,979,467

Accounts receivable – affiliates

9,903

10,350

11,905

12,057

12,121

Other assets, net (a)

245,625

233,137

244,182

237,594

239,958

Cash and cash equivalents

93,932

92,693

259,686

14,600

20,326

Restricted cash

7,969

8,230

8,361

8,369

8,531

Total assets

9,079,574

9,103,604

9,383,737

9,214,464

9,260,403

LIABILITIES AND EQUITY

Liabilities

Notes payable

Unsecured

3,222,569

3,223,285

3,385,309

3,323,057

3,352,415

Secured

330,241

330,184

330,127

330,071

330,015

Accounts payable and accrued expenses

212,247

213,896

222,599

211,759

192,613

Accrued real estate taxes

90,702

46,612

96,517

128,794

93,642

Distributions payable

113,506

113,556

110,427

110,463

110,465

Other liabilities (b)

183,377

182,443

186,987

175,341

189,711

Total liabilities

4,152,642

4,109,976

4,331,966

4,279,485

4,268,861

Equity

Common shares of beneficial interest

1,157

1,156

Additional paid-in capital

5,924,608

5,919,851

5,914,868

5,911,627

5,907,828

Distributions in excess of net income attributable to common shareholders

(710,633

)

(641,663

)

(613,651

)

(727,117

)

(666,218

)

Treasury shares

(359,975

)

(356,880

)

(320,364

)

(320,702

)

(320,675

)

Accumulated other comprehensive income/(loss) (c)

283

(78

)

(1,252

)

(699

)

(1,057

)

Total common equity

4,855,440

4,922,387

4,980,757

4,864,265

4,921,034

Non-controlling interests

71,492

71,241

71,014

70,714

70,508

Total equity

4,926,932

4,993,628

5,051,771

4,934,979

4,991,542

Total liabilities and equity

9,079,574

9,103,604

9,383,737

9,214,464

9,260,403

(a) Includes net deferred charges of:

3,703

4,286

5,879

6,481

7,033

(b) Includes deferred revenues of:

894

958

1,030

1,167

1,239

(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.

Core FFO

Core FFO represents FFO as further adjusted for items not considered part of our core business operations, such as casualty-related expenses, net of recoveries, severance, legal costs and settlements, net of recoveries, loss on early retirement of debt, expensed transaction, development and other pursuit costs, net of recoveries, net below market lease amortization, pandemic resident relief, (gain)/loss on sale of land, advocacy contributions, and miscellaneous (income)/expense adjustments. We consider Core FFO to be a helpful supplemental measure of operating performance as it excludes not only depreciation expense of real estate assets, but it also excludes certain items which by their nature are not comparable period over period and therefore tends to obscure actual operating performance. Our definition of Core FFO may differ from other REITs, and there can be no assurance our basis for computing this measure is comparable to other REITs.

Core Adjusted FFO

In addition to FFO & Core FFO, we compute Core Adjusted FFO ("Core AFFO") as a supplemental measure of operating performance. Core AFFO is calculated utilizing Core 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 Core FFO and Core AFFO is provided below:

Three Months Ended June 30,

Six Months Ended June 30,

2024

2023

2024

2023

Net income attributable to common shareholders

42,917

91,099

126,806

133,016

Real estate depreciation and amortization

142,895

140,013

284,742

279,400

Income allocated to non-controlling interests

1,893

1,841

3,763

3,543

Gain on sale of operating properties

—

(48,919

)

(43,806

)

(48,919

)

Funds from operations

187,705

184,034

371,505

367,040

Plus: Casualty-related expenses, net of (recoveries)

(1,587

)

981

(64

)

939

Plus: Severance

—

506

—

Plus: Legal costs and settlements, net of recoveries

1,114

—

1,966

Plus: Loss on early retirement of debt

—

2,513

921

2,513

Plus: Expensed development & other pursuit costs

660

471

660

471

Less: Miscellaneous (income)/expense

—

(364

)

—

(364

)

Core funds from operations

187,892

187,635

375,494

370,683

Less: recurring capitalized expenditures

(29,595

)

(21,034

)

(51,620

)

(38,613

)

Core adjusted funds from operations

158,297

166,601

323,874

332,070

Weighted average number of common shares outstanding:

EPS diluted

108,424

109,392

108,577

108,636

FFO/Core FFO/ Core AFFO diluted

110,018

110,262

110,171

110,232

CAMDEN

NON-GAAP FINANCIAL MEASURES

DEFINITIONS & RECONCILIATIONS

(In thousands, except per share amounts)

(Unaudited)

Reconciliation of FFO, Core FFO, and Core AFFO per share

Three Months Ended June 30,

Six Months Ended June 30,

2024

2023

2024

2023

Total Earnings Per Common Share - Diluted

0.40

0.84

1.17

1.22

Real estate depreciation and amortization

1.29

1.26

2.57

2.52

Income allocated to non-controlling interests

0.02

0.01

0.03

Gain on sale of operating property

—

(0.44

)

(0.40

)

(0.44

)

FFO per common share - Diluted

1.71

1.67

3.37

3.33

Plus: Casualty-related expenses, net of (recoveries)

(0.02

)

0.01

—

0.01

Plus: Severance

—

Plus: Legal costs and settlements, net of recoveries

0.01

—

0.02

—

Plus: Loss on early retirement of debt

—

0.02

0.01

0.02

Plus: Expensed development & other pursuit costs

0.01

—

0.01

—

Less: Miscellaneous (income)/expense

—

Core FFO per common share - Diluted

1.71

1.70

3.41

3.36

Less: recurring capitalized expenditures

(0.27

)

(0.19

)

(0.47

)

(0.35

)

Core AFFO per common share - Diluted

1.44

1.51

2.94

3.01

Expected FFO & Core FFO

Expected FFO and Core FFO is calculated in a method consistent with historical FFO and Core FFO, and is considered appropriate supplemental measures of expected operating performance when compared to expected earnings per common share (EPS). A reconciliation of the ranges provided for diluted EPS to expected FFO and expected Core FFO per diluted share is provided below:

3Q24

Range

2024

Range

Low

High

Low

High

Expected earnings per common share - diluted

0.31

0.35

1.83

1.93

Expected real estate depreciation and amortization

1.30

5.17

Expected income allocated to non-controlling interests

0.02

0.07

Expected (gain) on sale of operating properties

—

(0.40

)

(0.40

)

Expected FFO per share - diluted

1.63

1.67

6.67

6.77

Anticipated Adjustments to FFO

0.03

0.07

Expected Core FFO per share - diluted

1.66

1.70

6.74

6.84

Note: This table contains forward-looking statements. Please see 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 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. Our definition of NOI 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 net income to net operating income is provided below:

Three months ended June 30,

Six months ended June 30,

2024

2023

2024

2023

Net income

44,810

92,940

130,569

136,559

Less: Fee and asset management income

(2,606

)

(718

)

(3,890

)

(1,296

)

Less: Interest and other income

(1,598

)

(431

)

(3,366

)

(493

)

Less: Income on deferred compensation plans

(1,073

)

(2,844

)

(6,892

)

(8,756

)

Plus: Property management expense

9,846

8,751

19,240

17,048

Plus: Fee and asset management expense

475

420

918

833

Plus: General and administrative expense

18,154

15,863

34,847

31,219

Plus: Interest expense

32,227

33,578

64,764

66,421

Plus: Depreciation and amortization expense

145,894

143,054

290,696

285,498

Plus: Expense on deferred compensation plans

1,073

2,844

6,892

8,756

Plus: Loss on early retirement of debt

—

2,513

921

2,513

Less: Gain on sale of operating property

—

(48,919

)

(43,806

)

(48,919

)

Plus: Income tax expense

1,059

851

1,964

2,001

NOI

248,261

247,902

492,857

491,384

"Same Property" Communities

235,481

233,450

470,115

462,828

Non-"Same Property" Communities

8,935

7,124

18,078

13,294

Development and Lease-Up Communities

449

)

451

)

Disposition/Other

3,396

7,332

4,213

15,269

NOI

248,261

247,902

492,857

491,384

CAMDEN

NON-GAAP FINANCIAL MEASURES

DEFINITIONS & RECONCILIATIONS

(In thousands, except per share amounts)

(Unaudited)

EBITDAre and Adjusted EBITDAre

Earnings Before Interest, Taxes, Depreciation, and Amortization for Real Estate (“EBITDAre”) and Adjusted EBITDAre are supplemental measures of our financial performance. EBITDAre is calculated in accordance with the definition adopted by NAREIT as earnings before interest, taxes, depreciation and amortization plus or minus losses and gains on the disposition of depreciated property, including gains (losses) on change of control, plus impairment write-downs of depreciated property with adjustments to reflect the Company’s share of EBITDAre of unconsolidated joint ventures.

Adjusted EBITDAre represents EBITDAre as further adjusted for non-core items. Adjusted EBITDAre excludes equity in (income) loss of joint ventures, (gain) loss on land, and loss on early retirement of debt. The Company considers EBITDAre and Adjusted EBITDAre to be appropriate supplemental measures of operating performance to net income because it represents income before non-cash depreciation and the cost of debt, and excludes gains or losses from property dispositions. Annualized Adjusted EBITDAre is Adjusted EBITDAre as reported for the period multiplied by 4 for quarter results or 2 for 6 month results. A reconciliation of net income to EBITDAre and adjusted EBITDAre is provided below:

Three months ended June 30,

Six months ended June 30,

2024

2023

2024

2023

Net income

44,810

92,940

130,569

136,559

Plus: Interest expense

32,227

33,578

64,764

66,421

Plus: Depreciation and amortization expense

145,894

143,054

290,696

285,498

Plus: Income tax expense

1,059

851

1,964

2,001

Less: Gain on sale of operating property

—

(48,919

)

(43,806

)

(48,919

)

EBITDAre

223,990

221,504

444,187

441,560

Plus: Casualty-related expenses, net of (recoveries)

(1,587

)

981

(64

)

939

Plus: Severance

—

506

—

Plus: Legal costs and settlements, net of recoveries

1,114

—

1,966

Plus: Loss on early retirement of debt

—

2,513

921

2,513

Plus: Expensed development & other pursuit costs

660

471

660

471

Less: Miscellaneous (income)/expense

—

(364

)

—

(364

)

Adjusted EBITDAre

224,177

225,105

448,176

445,203

Annualized Adjusted EBITDAre

896,708

900,420

896,352

890,406

Net Debt to Annualized Adjusted EBITDAre

The Company believes Net Debt to Annualized Adjusted EBITDAre 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 EBITDAre for the following periods:

Net Debt:

Average monthly balance for the

Three months ended June 30,

Six months ended June 30,

2024

2023

2024

2023

Unsecured notes payable

3,220,334

3,364,180

3,232,903