UNITED STATES FORM 10-Q [x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE For the quarterly period ended March 31, 2003 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) For the transition period from __________ to _________ Commission file number: 1-12110 CAMDEN PROPERTY TRUST |
TEXAS (State or Other Jurisdiction of Incorporation or Organization) | 76-6088377 (I.R.S. Employer Identification Number) |
3 Greenway Plaza, Suite 1300, Houston, Texas 77046 Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NO |
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NOIndicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). YES X NO APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: As of May 8, 2003, there were 39,284,469 shares of Common Shares of Beneficial Interest, $0.01 par value outstanding. |
CAMDEN PROPERTY TRUST |
PART I | FINANCIAL INFORMATION | Page |
---|---|---|
Item 1 | Financial Statements | |
Consolidated Balance Sheets (Unaudited) as of March 31, 2003 and | ||
December 31, 2002 | 3 | |
Consolidated Statements of Operations (Unaudited) for the three months ended | ||
March 31, 2003 and 2002 | 4 | |
Consolidated Statements of Cash Flows (Unaudited) for the three months ended | ||
March 31, 2003 and 2002 | 5 | |
Notes to Consolidated Financial Statements (Unaudited) | 6 | |
Item 2 | Management's Discussion and Analysis of Financial Condition and | |
Results of Operations | 14 | |
Item 3 | Quantitative and Qualitative Disclosures About Market Risk | 25 |
Item 4 | Controls and Procedures | 25 |
PART II | OTHER INFORMATION | |
Item 1 | Legal Proceedings | 26 |
Item 2 | Changes in Securities and Use of Proceeds | 26 |
Item 3 | Defaults Upon Senior Securities | 26 |
Item 4 | Submission of Matters to a Vote of Security Holders | 26 |
Item 5 | Other Information | 26 |
Item 6 | Exhibits and Reports on Form 8-K | 26 |
SIGNATURES | 27 | |
CERTIFICATIONS | 28 |
2 PART I. FINANCIAL INFORMATION |
(In thousands) | ||||||||||||||
March 31, 2003 | December 31, 2002 | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
ASSETS | ||||||||||||||
Real estate assets, at cost | ||||||||||||||
Land | $ | 392,794 | $ | 386,246 | ||||||||||
Buildings and improvements | 2,392,936 | 2,348,702 | ||||||||||||
2,785,730 | 2,734,948 | |||||||||||||
Accumulated depreciation | (524,165 | ) | (498,776 | ) | ||||||||||
Net operating real estate assets | 2,261,565 | 2,236,172 | ||||||||||||
Properties under development, including land | 264,259 | 285,636 | ||||||||||||
Investment in joint ventures | 10,919 | 15,386 | ||||||||||||
Total real estate assets | 2,536,743 | 2,537,194 | ||||||||||||
Accounts receivable - affiliates | 6,444 | 5,843 | ||||||||||||
Notes receivable | ||||||||||||||
Affiliates | 1,800 | 1,800 | ||||||||||||
Other | 18,614 | 18,614 | ||||||||||||
Other assets, net | 43,143 | 41,827 | ||||||||||||
Cash and cash equivalents | 1,945 | 405 | ||||||||||||
Restricted cash | 4,365 | 4,216 | ||||||||||||
Total assets | $ | 2,613,054 | $ | 2,609,899 | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Liabilities | ||||||||||||||
Notes payable | ||||||||||||||
Unsecured | $ | 1,208,513 | $ | 1,177,347 | ||||||||||
Secured | 248,481 | 249,669 | ||||||||||||
Accounts payable | 36,978 | 36,189 | ||||||||||||
Accrued real estate taxes | 12,782 | 26,827 | ||||||||||||
Accrued expenses and other liabilities | 52,347 | 49,144 | ||||||||||||
Distributions payable | 30,639 | 30,541 | ||||||||||||
Total liabilities | 1,589,740 | 1,569,717 | ||||||||||||
Commitments and contingencies | ||||||||||||||
Minority interests | ||||||||||||||
Units convertible into perpetual preferred shares | 149,815 | 149,815 | ||||||||||||
Units convertible into common shares | 49,621 | 50,914 | ||||||||||||
Total minority interests | 199,436 | 200,729 | ||||||||||||
Shareholders' equity | ||||||||||||||
Common shares of beneficial interest | 479 | 479 | ||||||||||||
Additional paid-in capital | 1,318,649 | 1,314,592 | ||||||||||||
Distributions in excess of net income | (241,960 | ) | (224,756 | ) | ||||||||||
Unearned restricted share awards | (16,282 | ) | (13,714 | ) | ||||||||||
Treasury shares, at cost | (237,008 | ) | (237,148 | ) | ||||||||||
Total shareholders' equity | 823,878 | 839,453 | ||||||||||||
Total liabilities and shareholders' equity | $ | 2,613,054 | $ | 2,609,899 | ||||||||||
See Notes to Consolidated Financial Statements. 3 CAMDEN PROPERTY TRUST |
(In thousands, except per share amounts) | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2003 | 2002 | ||||||||||||||||
Revenues | |||||||||||||||||
Rental income | $ | 90,008 | $ | 90,087 | |||||||||||||
Other property income | 7,410 | 7,224 | |||||||||||||||
Total property income | 97,418 | 97,311 | |||||||||||||||
Fee and asset management | 1,770 | 1,536 | |||||||||||||||
Other income | 1,612 | 2,850 | |||||||||||||||
Total revenues | 100,800 | 101,697 | |||||||||||||||
Expenses | |||||||||||||||||
Property operating and maintenance | 28,082 | 24,745 | |||||||||||||||
Real estate taxes | 11,164 | 10,335 | |||||||||||||||
Total property expenses | 39,246 | 35,080 | |||||||||||||||
Property management | 2,537 | 2,395 | |||||||||||||||
Fee and asset management | 1,563 | 702 | |||||||||||||||
General and administrative | 3,611 | 3,085 | |||||||||||||||
Other expenses | 1,077 | 1,178 | |||||||||||||||
Interest | 18,356 | 17,104 | |||||||||||||||
Depreciation and amortization | 26,555 | 25,519 | |||||||||||||||
Total expenses | 92,945 | 85,063 | |||||||||||||||
Income from continuing operations before gain on sale of properties, equity in income of joint ventures and minority interests | 7,855 | 16,634 | |||||||||||||||
Gain on sale of properties | 1,423 | -- | |||||||||||||||
Equity in income of joint ventures | 2,643 | 225 | |||||||||||||||
Income allocated to minority interests | |||||||||||||||||
Distributions on units convertible into perpetual preferred shares | (3,218 | ) | (3,218 | ) | |||||||||||||
Income allocated to units convertible into common shares | (369 | ) | (454 | ) | |||||||||||||
Income from continuing operations | 8,334 | 13,187 | |||||||||||||||
Income from discontinued operations | -- | 795 | |||||||||||||||
Net income | $ | 8,334 | $ | 13,982 | |||||||||||||
Earnings per share - basic | |||||||||||||||||
Income from continuing operations | $ | 0.21 | $ | 0.32 | |||||||||||||
Income from discontinued operations | -- | 0.02 | |||||||||||||||
Net income | $ | 0.21 | $ | 0.34 | |||||||||||||
Earnings per share - diluted | |||||||||||||||||
Income from continuing operations | $ | 0.20 | $ | 0.30 | |||||||||||||
Income from discontinued operations | -- | 0.02 | |||||||||||||||
Net income | $ | 0.20 | $ | 0.32 | |||||||||||||
Distributions declared per common share | $ | 0.635 | $ | 0.635 | |||||||||||||
Weighted average number of common shares outstanding | 39,164 | 40,826 | |||||||||||||||
Weighted average number of common and common dilutive equivalent shares outstanding | 42,752 | 44,648 |
See Notes to Consolidated Financial Statements. 4 CAMDEN PROPERTY TRUST |
(In thousands) | ||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
2003 | 2002 | |||||||||||||||||||
CASH FLOW FROM OPERATING ACTIVITIES | ||||||||||||||||||||
Net income | $ | 8,334 | $ | 13,982 | ||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||||||||
Income from discontinued operations | -- | (795 | ) | |||||||||||||||||
Depreciation and amortization | 26,555 | 25,519 | ||||||||||||||||||
Equity in income of joint ventures, net of cash received | 256 | 536 | ||||||||||||||||||
Gain on sale of properties | (1,423 | ) | -- | |||||||||||||||||
Income allocated to units convertible into common shares | 369 | 454 | ||||||||||||||||||
Accretion of discount on unsecured notes payable | 166 | 109 | ||||||||||||||||||
Net change in operating accounts | (9,078 | ) | (10,890 | ) | ||||||||||||||||
Net cash provided by operating activities of continuing operations | 25,179 | 28,915 | ||||||||||||||||||
Net cash provided by operating activities of discontinued operations | -- | 671 | ||||||||||||||||||
Net cash provided by operating activities | 25,179 | 29,586 | ||||||||||||||||||
CASH FLOW FROM INVESTING ACTIVITIES | ||||||||||||||||||||
Increase in real estate assets | (32,452 | ) | (32,379 | ) | ||||||||||||||||
Net proceeds from sale of properties and townhomes | 4,929 | 1,075 | ||||||||||||||||||
Decrease in investment in joint ventures | 4,211 | -- | ||||||||||||||||||
Increase in investments in third party development properties | -- | (2,930 | ) | |||||||||||||||||
Other | (384 | ) | (698 | ) | ||||||||||||||||
Net cash used in investing activities | (23,696 | ) | (34,932 | ) | ||||||||||||||||
CASH FLOW FROM FINANCING ACTIVITIES | ||||||||||||||||||||
Net increase in unsecured line of credit and short term borrowings | 31,000 | 69,000 | ||||||||||||||||||
Repayment of notes payable | (1,188 | ) | (35,775 | ) | ||||||||||||||||
Distributions to shareholders and minority interests | (30,173 | ) | (29,910 | ) | ||||||||||||||||
Other | 418 | 4,019 | ||||||||||||||||||
Net cash provided by financing activities | 57 | 7,334 | ||||||||||||||||||
Net increase in cash and cash equivalents | 1,540 | 1,988 | ||||||||||||||||||
Cash and cash equivalents, beginning of period | 405 | 3,179 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | 1,945 | $ | 5,167 | ||||||||||||||||
SUPPLEMENTAL INFORMATION | ||||||||||||||||||||
Cash paid for interest, net of interest capitalized | $ | 13,079 | $ | 17,912 | ||||||||||||||||
Interest capitalized | 4,268 | 2,263 | ||||||||||||||||||
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||||||||||||||||||||
Value of shares issued under benefit plans, net | $ | 3,837 | $ | 9,314 | ||||||||||||||||
Conversion of operating partnership units to common shares | 90 | 680 |
Three Months Ended March 31, | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2003 | 2002 | |||||||||||||
Basic earnings per share calculation | ||||||||||||||
Income from continuing operations | $ | 8,334 | $ | 13,187 | ||||||||||
Income from discontinued operations | -- | 795 | ||||||||||||
Net income | $ | 8,334 | $ | 13,982 | ||||||||||
Income from continuing operations - per share | $ | 0.21 | $ | 0.32 | ||||||||||
Income from discontinued operations - per share | -- | 0.02 | ||||||||||||
Net income - per share | $ | 0.21 | $ | 0.34 | ||||||||||
Weighted average common shares outstanding | 39,164 | 40,826 | ||||||||||||
Diluted earnings per share calculation | ||||||||||||||
Income from continuing operations | $ | 8,334 | $ | 13,187 | ||||||||||
Income allocated to units convertible into common shares | 369 | 454 | ||||||||||||
Income from continuing operations, as adjusted | 8,703 | 13,641 | ||||||||||||
Income from discontinued operations | -- | 795 | ||||||||||||
Net income, as adjusted | $ | 8,703 | $ | 14,436 | ||||||||||
Income from continuing operations, as adjusted - per share | $ | 0.20 | $ | 0.30 | ||||||||||
Income from discontinued operations - per share | -- | 0.02 | ||||||||||||
Net income, as adjusted - per share | $ | 0.20 | $ | 0.32 | ||||||||||
Weighted average common shares outstanding | 39,164 | 40,826 | ||||||||||||
Incremental shares issuable from assumed conversion of: | ||||||||||||||
Common share options and awards granted | 1,132 | 1,357 | ||||||||||||
Units convertible into common shares | 2,456 | 2,465 | ||||||||||||
Weighted average common shares outstanding, as adjusted | 42,752 | 44,648 | ||||||||||||
(In thousands) | |||||
Total property income | $ | 2,306 | |||
Total property expenses | 973 | ||||
Net operating income | 1,333 | ||||
Depreciation | 538 | ||||
Income from discontinued operations | $ | 795 | |||
(In millions) | ||||||||||||||
March 31, 2003 | December 31, 2002 | |||||||||||||
Unsecured line of credit and short term borrowings | $ | 127.0 | $ | 96.0 | ||||||||||
Senior unsecured notes | ||||||||||||||
7.03% Notes, due 2003 | 50.0 | 50.0 | ||||||||||||
7.14% Notes, due 2004 | 199.7 | 199.7 | ||||||||||||
7.11% - 7.28% Notes, due 2006 | 174.4 | 174.4 | ||||||||||||
5.98% Notes, due 2007 | 149.4 | 149.3 | ||||||||||||
6.77% Notes, due 2010 | 99.9 | 99.9 | ||||||||||||
7.69% Notes, due 2011 | 149.4 | 149.4 | ||||||||||||
5.93% Notes, due 2012 | 199.2 | 199.1 | ||||||||||||
1,022.0 | 1,021.8 | |||||||||||||
Medium term notes | ||||||||||||||
6.88% - 7.17% Notes, due 2004 | 30.0 | 30.0 | ||||||||||||
7.63% Notes, due 2009 | 15.0 | 15.0 | ||||||||||||
6.79% Notes, due 2010 | 14.5 | 14.5 | ||||||||||||
59.5 | 59.5 | |||||||||||||
Total unsecured notes | 1,208.5 | 1,177.3 | ||||||||||||
Secured notes | ||||||||||||||
7.10% - 8.50% Conventional Mortgage Notes, due 2003 - 2009 | 149.1 | 150.0 | ||||||||||||
1.83% - 7.29% Tax-exempt Mortgage Notes, due 2025 - 2032 | 99.4 | 99.7 | ||||||||||||
248.5 | 249.7 | |||||||||||||
Total notes payable | $ | 1,457.0 | $ | 1,427.0 | ||||||||||
(In thousands) | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2003 | 2002 | |||||||||||||
Decrease (increase) in assets: | ||||||||||||||
Accounts receivable - affiliates | $ | (448 | ) | $ | (263 | ) | ||||||||
Other assets, net | (1,532 | ) | (678 | ) | ||||||||||
Restricted cash | (149 | ) | (189 | ) | ||||||||||
Increase (decrease) in liabilities: | ||||||||||||||
Accounts payable | 789 | 6,039 | ||||||||||||
Accrued real estate taxes | (13,829 | ) | (14,378 | ) | ||||||||||
Accrued expenses and other liabilities | 6,091 | (1,421 | ) | |||||||||||
Net change in operating accounts | $ | (9,078 | ) | $ | (10,890 | ) | ||||||||
Three Months Ended March 31, | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2003 | 2002 | |||||||||||||
Net income, as reported | $ | 8,334 | 13,982 | |||||||||||
Per share - basic | 0.21 | 0.34 | ||||||||||||
Per share - diluted | 0.20 | 0.32 | ||||||||||||
Net income, pro forma | $ | 8,129 | 13,904 | |||||||||||
Per share - basic | 0.21 | 0.34 | ||||||||||||
Per share - diluted | 0.20 | 0.32 | ||||||||||||
Share-based compensation cost: | ||||||||||||||
Included in net income, as reported | $ | 787 | 628 | |||||||||||
Included in net income, pro forma | 992 | 706 |
o | the results of our efforts to implement our property development, construction and acquisition strategies; |
o | the effects of economic conditions, including rising interest rates; |
o | our ability to generate sufficient cash flows; |
o | the failure to qualify as a real estate investment trust; |
o | the costs of our capital and debt; |
o | changes in our capital requirements; |
o | the actions of our competitors and our ability to respond to those actions; |
o | changes in governmental regulations, tax rates and similar matters; and |
o | environmental uncertainties and disasters. |
March 31, 2003 | December 31, 2002 | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apartment Homes | Properties | Apartment Homes | Properties | |||||||||||||||
Operating Properties | ||||||||||||||||||
West Region | ||||||||||||||||||
Las Vegas, Nevada (a) | 10,017 | 35 | 10,017 | 35 | ||||||||||||||
Denver, Colorado (a) | 2,529 | 8 | 2,529 | 8 | ||||||||||||||
Phoenix, Arizona | 2,433 | 8 | 2,433 | 8 | ||||||||||||||
Southern California | 1,917 | 5 | 1,917 | 5 | ||||||||||||||
Tucson, Arizona | 821 | 2 | 821 | 2 | ||||||||||||||
Central Region | ||||||||||||||||||
Dallas, Texas | 8,359 | 23 | 8,359 | 23 | ||||||||||||||
Houston, Texas | 6,446 | 14 | 6,446 | 14 | ||||||||||||||
St. Louis, Missouri | 2,123 | 6 | 2,123 | 6 | ||||||||||||||
Austin, Texas | 1,745 | 6 | 1,745 | 6 | ||||||||||||||
Corpus Christi, Texas | 1,284 | 3 | 1,284 | 3 | ||||||||||||||
Kansas City, Missouri | 596 | 1 | 596 | 1 | ||||||||||||||
East Region | ||||||||||||||||||
Tampa, Florida | 6,089 | 13 | 6,089 | 13 | ||||||||||||||
Orlando, Florida | 2,804 | 6 | 2,804 | 6 | ||||||||||||||
Charlotte, North Carolina | 1,659 | 6 | 1,659 | 6 | ||||||||||||||
Louisville, Kentucky | 1,448 | 5 | 1,448 | 5 | ||||||||||||||
Greensboro, North Carolina | 520 | 2 | 520 | 2 | ||||||||||||||
Total Operating Properties | 50,790 | 143 | 50,790 | 143 | ||||||||||||||
Properties Under Development | ||||||||||||||||||
West Region | ||||||||||||||||||
Southern California | 1,120 | 3 | 1,120 | 3 | ||||||||||||||
Central Region | ||||||||||||||||||
Houston, Texas | 364 | 1 | 364 | 1 | ||||||||||||||
Total Properties Under Development | 1,484 | 4 | 1,484 | 4 | ||||||||||||||
Total Properties | 52,274 | 147 | 52,274 | 147 | ||||||||||||||
Less: Joint Venture Properties (a) | 4,939 | 19 | 4,939 | 19 | ||||||||||||||
Total Properties Owned 100% | 47,335 | 128 | 47,335 | 128 | ||||||||||||||
(a) | Includes properties held in joint ventures as follows: one property with 320 apartment homes in Colorado in which we own a 50% interest, the remaining interest is owned by an unaffiliated private investor; and 18 properties with 4,619 apartment homes in Nevada in which we own a 20% interest, the remaining interest is owned by an unaffiliated private investor |
($ in millions) | |||||||||||||||||||||||||||||||||||||
Property and Location | Number of Apartment Homes | Cost to Date | % Leased at 4/28/03 | Date of Completion | Estimated Date of Stabilization | ||||||||||||||||||||||||||||||||
Camden Ybor City | |||||||||||||||||||||||||||||||||||||
Tampa, FL | 454 | $ | 43.3 | 86 | % | 1Q02 | 2Q03 | ||||||||||||||||||||||||||||||
Camden Vineyards | |||||||||||||||||||||||||||||||||||||
Murrieta, CA | 264 | 32.2 | 89 | 4Q02 | 2Q03 | ||||||||||||||||||||||||||||||||
718 | $ | 75.5 | |||||||||||||||||||||||||||||||||||
At March 31, 2003, we had four properties in various stages of construction as follows: |
($ in millions) | |||||||||||||||||||||||||||||||||||||
Property and Location | Number of Apartment Homes | Estimated Cost | Cost Incurred At 3/31/03 | Estimated Date of Completion | Estimated Date of Stabilization | ||||||||||||||||||||||||||||||||
In Lease-Up | |||||||||||||||||||||||||||||||||||||
Camden Sierra at Otay Ranch | |||||||||||||||||||||||||||||||||||||
Chula Vista, CA | 422 | $ | 60.0 | $ | 58.6 | 2Q03 | 1Q04 | ||||||||||||||||||||||||||||||
Camden Oak Crest | |||||||||||||||||||||||||||||||||||||
Houston, TX | 364 | 24.4 | 21.7 | 3Q03 | 2Q04 | ||||||||||||||||||||||||||||||||
Camden Tuscany | |||||||||||||||||||||||||||||||||||||
San Diego, CA | 160 | 39.0 | 36.9 | 3Q03 | 3Q03 | ||||||||||||||||||||||||||||||||
Camden Harbor View | |||||||||||||||||||||||||||||||||||||
Long Beach, CA | 538 | 137 | .5 | 118.6 | 1Q04 | 4Q04 | |||||||||||||||||||||||||||||||
Total development properties | 1,484 | $ | 260.9 | $ | 235.8 | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2003 | 2002 | |||||||||||||
Total property revenue per apartment home per month | 707 | 728 | ||||||||||||
Annualized total property expenses per apartment home | 3,419 | 3,150 | ||||||||||||
Weighted average number of operating apartment homes | 45,911 | 44,548 | ||||||||||||
Weighted average occupancy, by region | ||||||||||||||
West | 93.3 | % | 92.1 | % | ||||||||||
Central | 90.4 | % | 92.5 | % | ||||||||||
East | 91.1 | % | 89.6 | % | ||||||||||
Total operating properties owned 100% | 91.4 | % | 91.7 | % |
($ in thousands) | |||||||||||||||||||||||||||||||||||||
Apartment Homes | Three Months Ended March 31, 2003 2002 | Change $ % | |||||||||||||||||||||||||||||||||||
Property revenues | |||||||||||||||||||||||||||||||||||||
Same property communities | 42,137 | $ | 87,183 | $ | 90,405 | $ | (3,222 | ) | (3.6 | )% | |||||||||||||||||||||||||||
Non-same property communities | 2,996 | 7,739 | 4,605 | 3,134 | 68.1 | ||||||||||||||||||||||||||||||||
Development and lease-up communities | 2,202 | 2,351 | -- | 2,351 | -- | ||||||||||||||||||||||||||||||||
Dispositions/other | -- | 145 | 2,301 | (2,156 | ) | (93.7 | ) | ||||||||||||||||||||||||||||||
Total property revenues | 47,335 | 97,418 | 97,311 | 107 | 0.1 | ||||||||||||||||||||||||||||||||
Property expenses | |||||||||||||||||||||||||||||||||||||
Same property communities | 42,137 | 34,396 | 32,548 | 1,848 | 5.7 | ||||||||||||||||||||||||||||||||
Non-same property communities | 2,996 | 3,482 | 1,879 | 1,603 | 85.3 | ||||||||||||||||||||||||||||||||
Development and lease-up communities | 2,202 | 1,366 | -- | 1,366 | -- | ||||||||||||||||||||||||||||||||
Dispositions/other | -- | 2 | 653 | (651 | ) | (99.7 | ) | ||||||||||||||||||||||||||||||
Total property expenses | 47,335 | 39,246 | 35,080 | 4,166 | 11.9 | ||||||||||||||||||||||||||||||||
Property net operating income | |||||||||||||||||||||||||||||||||||||
Same property communities | 42,137 | 52,787 | 57,857 | (5,070 | ) | (8.8 | ) | ||||||||||||||||||||||||||||||
Non-same property communities | 2,996 | 4,257 | 2,726 | 1,531 | 56.2 | ||||||||||||||||||||||||||||||||
Development and lease-up communities | 2,202 | 985 | -- | 985 | -- | ||||||||||||||||||||||||||||||||
Dispositions/other | -- | 143 | 1,648 | (1,505 | ) | (91.3 | ) | ||||||||||||||||||||||||||||||
Total property net operating income | 47,335 | $ | 58,172 | $ | 62,231 | $ | (4,059 | ) | (6.5 | )% | |||||||||||||||||||||||||||
Same property communities are stabilized communities we have owned since January 1, 2002. Non-same property communities are stabilized communities we have acquired or developed since January 1, 2002. Development and lease-up communities are non-stabilized communities we have developed or acquired after January 1, 2002. Dispositions represent communities we have sold since January 1, 2002 but are not included in discontinued operations. |
(i) | using what management believes is a prudent combination of debt and common and preferred equity; | |
(ii) | extending and sequencing the maturity dates of our debt where possible; | |
(iii) | managing interest rate exposure using what management believes are prudent levels of fixed and floating | |
(iv) | borrowing on an unsecured basis in order to maintain a substantial number of unencumbered assets; and | |
(v) | maintaining conservative coverage ratios. |
(i) | operating expenses; | |
(ii) | current debt service requirements; | |
(iii) | recurring capital expenditures; | |
(iv) | initial funding of property developments and acquisitions; | |
(vi) | common share repurchases; and | |
(vii) | distributions on our common and preferred equity. |
(In millions) |
Year | Amount | ||||
2003 | $ | 66.2 | |||
2004 | 234.3 | ||||
2005 | 61.0 | ||||
2006 | 337.3 | ||||
2007 | 165.5 | ||||
2008 and thereafter | 592.7 | ||||
Total | $ | 1,457.0 | |||
(In thousands) | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2003 | 2002 | ||||||||||||||||
Funds from operations: | |||||||||||||||||
Net income | $ | 8,334 | $ | 13,982 | |||||||||||||
Real estate depreciation from continuing operations | 25,389 | 24,601 | |||||||||||||||
Real estate depreciation from discontinued operations | -- | 538 | |||||||||||||||
Adjustments for unconsolidated joint ventures | (450 | ) | 527 | ||||||||||||||
Gain on sales of properties | (1,423 | ) | -- | ||||||||||||||
Income allocated to units convertible into common shares | 369 | 454 | |||||||||||||||
Funds from operations - diluted | $ | 32,219 | $ | 40,102 | |||||||||||||
Weighted average shares - basic | 39,164 | 40,826 | |||||||||||||||
Common share options and awards granted | 1,132 | 1,357 | |||||||||||||||
Units convertible into common shares | 2,456 | 2,465 | |||||||||||||||
Weighted average shares - diluted | 42,752 | 44,648 | |||||||||||||||
PART II. OTHER INFORMATION | |
---|---|
Item 1 | Legal Proceedings |
None | |
Item 2 | Changes in Securities and Use of Proceeds |
None | |
Item 3 | Defaults Upon Senior Securities |
None | |
Item 4 | Submission of Matters to a Vote of Security Holders |
None | |
Item 5 | Other Information |
None | |
Item 6 | Exhibits and Reports on Form 8-K |
(a) | Exhibits | ||
99.1 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes - Oxley Act of 2002 of Chief Executive Officer dated May 12, 2003 | ||
99.2 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes - Oxley Act of 2002 of Chief Financial Officer dated May 12, 2003 | ||
(b) | Reports on Form 8-K | ||
None |
/s/ G. Steven Dawson | May 12, 2003 | ||
G. Steven Dawson Chief Financial Officer, Sr. Vice President - Finance, and Secretary | Date |
/s/ Dennis M. Steen | May 12, 2003 | ||
Dennis M. Steen Vice President - Controller, Chief Accounting Officer and Treasurer | Date |
27 CERTIFICATIONSCERTIFICATION PURSUANT TO |
1. | I have reviewed this quarterly report on Form 10-Q of Camden Property Trust (the “Registrant”); |
2. | Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this quarterly report; |
4. | The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the Registrant and we have: |
a. | Designed such disclosure controls and procedures to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; |
b. | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the “Evaluation Date”); and |
c. | Presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; |
5. | The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation, to the Registrant’s auditors and the Audit Committee of the Registrant’s Board of Trust Managers: |
a. | All significant deficiencies in the design or operation of internal controls which could adversely affect the Registrant’s ability to record, process, summarize and report financial data and have identified for the Registrant’s auditors any material weaknesses in internal controls; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal controls; |
6. | The Registrant’s other certifying officer and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. |
Date: May 12, 2003: | /s/ Richard J. Campo |
Richard J. Campo Chairman of the Board and Chief Executive Officer |
28 CERTIFICATIONSCERTIFICATION PURSUANT TO |
1. | I have reviewed this quarterly report on Form 10-Q of Camden Property Trust (the “Registrant”); |
2. | Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this quarterly report; |
4. | The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the Registrant and we have: |
a. | Designed such disclosure controls and procedures to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; |
b. | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the “Evaluation Date”); and |
c. | Presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; |
5. | The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation, to the Registrant’s auditors and the Audit Committee of the Registrant’s Board of Trust Managers: |
a. | All significant deficiencies in the design or operation of internal controls which could adversely affect the Registrant’s ability to record, process, summarize and report financial data and have identified for the Registrant’s auditors any material weaknesses in internal controls; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal controls; |
6. | The Registrant’s other certifying officer and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. |
Date: May 12, 2003: | /s/ G. Steven Dawson |
G. Steven Dawson Chief Financial Officer |
29 |