UNITED STATES FORM 10-Q (Mark One) [x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE For the quarterly period ended September 30, 2004 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 NOIndicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). 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 November 1, 2004, there were 39,946,753 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 September 30, 2004 and | ||
December 31, 2003 | 3 | |
Consolidated Statements of Operations (Unaudited) for the three and nine months | ||
ended September 30, 2004 and 2003 | 4 | |
Consolidated Statements of Cash Flows (Unaudited) for the nine months | ||
ended September 30, 2004 and 2003 | 5 | |
Notes to Consolidated Financial Statements (Unaudited) | 6 | |
Item 2 | Management's Discussion and Analysis of Financial Condition and | |
Results of Operations | 16 | |
Item 3 | Quantitative and Qualitative Disclosures About Market Risk | 30 |
Item 4 | Controls and Procedures | 30 |
PART II | OTHER INFORMATION | |
Item 1 | Legal Proceedings | 31 |
Item 2 | Unregistered Sales of Equity Securities and Use of Proceeds | 31 |
Item 3 | Defaults Upon Senior Securities | 31 |
Item 4 | Submission of Matters to a Vote of Security Holders | 31 |
Item 5 | Other Information | 31 |
Item 6 | Exhibits | 31 |
SIGNATURES | 33 | |
2 |
PART I. FINANCIAL INFORMATION |
September 30, 2004 | December 31, 2003 | |||||||
---|---|---|---|---|---|---|---|---|
ASSETS | ||||||||
Real estate assets, at cost | ||||||||
Land | $ | 406,760 | $ | 400,490 | ||||
Buildings and improvements | 2,583,555 | 2,499,214 | ||||||
2,990,315 | 2,899,704 | |||||||
Accumulated depreciation | (680,184 | ) | (601,688 | ) | ||||
Net operating real estate assets | 2,310,131 | 2,298,016 | ||||||
Properties under development, including land | 174,351 | 189,119 | ||||||
Investments in joint ventures | 10,076 | 11,033 | ||||||
Land held for sale | 1,800 | -- | ||||||
Total real estate assets | 2,496,358 | 2,498,168 | ||||||
Accounts receivable - affiliates | 30,434 | 25,997 | ||||||
Notes receivable | ||||||||
Affiliates | 10,010 | 9,017 | ||||||
Other | 53,599 | 41,416 | ||||||
Other assets, net | 49,804 | 40,951 | ||||||
Cash and cash equivalents | 2,465 | 3,357 | ||||||
Restricted cash | 4,259 | 6,655 | ||||||
Total assets | $ | 2,646,929 | $ | 2,625,561 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Liabilities | ||||||||
Notes payable | ||||||||
Unsecured | $ | 1,435,197 | $ | 1,277,879 | ||||
Secured | 170,129 | 231,798 | ||||||
Accounts payable | 28,794 | 26,150 | ||||||
Accrued real estate taxes | 32,732 | 27,407 | ||||||
Accrued expenses and other liabilities | 48,192 | 50,111 | ||||||
Distributions payable | 30,331 | 30,946 | ||||||
Total liabilities | 1,745,375 | 1,644,291 | ||||||
Commitments and contingencies | ||||||||
Minority interests | ||||||||
Perpetual preferred units | 115,060 | 149,815 | ||||||
Common units | 43,881 | 46,570 | ||||||
Total minority interests | 158,941 | 196,385 | ||||||
Shareholders' equity | ||||||||
Common shares of beneficial interest | 486 | 483 | ||||||
Additional paid-in capital | 1,346,040 | 1,330,512 | ||||||
Distributions in excess of net income | (353,996 | ) | (297,808 | ) | ||||
Unearned restricted share awards | (14,069 | ) | (11,875 | ) | ||||
Treasury shares, at cost | (235,848 | ) | (236,427 | ) | ||||
Total shareholders' equity | 742,613 | 784,885 | ||||||
Total liabilities and shareholders' equity | $ | 2,646,929 | $ | 2,625,561 | ||||
See Notes to Consolidated Financial Statements. 3 |
CAMDEN PROPERTY TRUST |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2004 | 2003 | 2004 | 2003 | |||||||||||
Revenues | ||||||||||||||
Rental revenues | $ | 96,937 | $ | 93,588 | $ | 289,212 | $ | 275,289 | ||||||
Other property revenues | 9,047 | 8,790 | 26,268 | 25,237 | ||||||||||
Total property revenues | 105,984 | 102,378 | 315,480 | 300,526 | ||||||||||
Fee and asset management | 1,962 | 1,944 | 6,639 | 5,402 | ||||||||||
Other revenues | 1,917 | 802 | 7,999 | 3,447 | ||||||||||
Total revenues | 109,863 | 105,124 | 330,118 | 309,375 | ||||||||||
Expenses | ||||||||||||||
Property operating and maintenance | 33,537 | 31,661 | 95,507 | 89,815 | ||||||||||
Real estate taxes | 11,604 | 11,203 | 34,953 | 33,448 | ||||||||||
Total property expenses | 45,141 | 42,864 | 130,460 | 123,263 | ||||||||||
Property management | 2,901 | 2,533 | 8,512 | 7,494 | ||||||||||
Fee and asset management | 850 | 598 | 2,845 | 3,229 | ||||||||||
General and administrative | 4,074 | 3,878 | 12,400 | 11,926 | ||||||||||
Other expenses | -- | -- | -- | 1,389 | ||||||||||
Interest | 19,305 | 18,584 | 59,701 | 55,459 | ||||||||||
Depreciation | 27,149 | 26,353 | 80,299 | 78,699 | ||||||||||
Amortization of deferred financing costs | 767 | 658 | 2,250 | 1,923 | ||||||||||
Total expenses | 100,187 | 95,468 | 296,467 | 283,382 | ||||||||||
Income before gain on sale of land, impairment loss on land held for sale, equity in income of joint ventures and minority interests | 9,676 | 9,656 | 33,651 | 25,993 | ||||||||||
Gain on sale of land | -- | 89 | 1,255 | 2,171 | ||||||||||
Impairment loss on land held for sale | -- | -- | (1,143 | ) | -- | |||||||||
Equity in income of joint ventures | 93 | 4 | 259 | 3,152 | ||||||||||
Income allocated to minority interests | ||||||||||||||
Distributions on perpetual preferred units | (2,664 | ) | (3,218 | ) | (8,350 | ) | (9,654 | ) | ||||||
Original issuance costs of redeemed perpetual preferred units | (745 | ) | -- | (745 | ) | -- | ||||||||
Income allocated to common units | (553 | ) | (593 | ) | (2,078 | ) | (1,482 | ) | ||||||
Net income | $ | 5,807 | $ | 5,938 | $ | 22,849 | $ | 20,180 | ||||||
Net income per share - basic | $ | 0.14 | $ | 0.15 | $ | 0.57 | $ | 0.51 | ||||||
Net income per share - diluted | $ | 0.14 | $ | 0.14 | $ | 0.54 | $ | 0.49 | ||||||
Distributions declared per common share | $ | 0.635 | $ | 0.635 | $ | 1.905 | $ | 1.905 | ||||||
Weighted average number of common shares outstanding | 40,377 | 39,290 | 40,234 | 39,224 | ||||||||||
Weighted average number of common and common dilutive equivalent shares outstanding | 42,574 | 41,465 | 42,381 | 41,170 |
See Notes to Consolidated Financial Statements. 4 CAMDEN PROPERTY TRUSTCONSOLIDATED |
Nine Months Ended September 30, | ||||||||
---|---|---|---|---|---|---|---|---|
2004 | 2003 | |||||||
Cash flow from operating activities | ||||||||
Net income | $ | 22,849 | $ | 20,180 | ||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Depreciation | 80,299 | 78,699 | ||||||
Amortization of deferred financing costs | 2,250 | 1,923 | ||||||
Equity in income of joint ventures | (259 | ) | (3,152 | ) | ||||
Gain on sale of land | (1,255 | ) | (2,171 | ) | ||||
Impairment loss on land held for sale | 1,143 | -- | ||||||
Original issuance costs of redeemed perpetual preferred units | 745 | -- | ||||||
Income allocated to common units | 2,078 | 1,482 | ||||||
Accretion of discount on unsecured notes payable | 466 | 505 | ||||||
Amortization of share-based compensation | 2,057 | 2,080 | ||||||
Net change in operating accounts | 11,259 | 5,543 | ||||||
Net cash provided by operating activities | 121,632 | 105,089 | ||||||
Cash flow from investing activities | ||||||||
Increase in real estate assets | (80,483 | ) | (85,012 | ) | ||||
Net proceeds from sale of land and townhomes | 3,451 | 13,498 | ||||||
Increase in notes receivable - other | (12,183 | ) | (6,805 | ) | ||||
Distributions from joint ventures | 1,216 | 8,544 | ||||||
Increase in non-real estate assets and other | (4,714 | ) | (1,431 | ) | ||||
Net cash used in investing activities | (92,713 | ) | (71,206 | ) | ||||
Cash flow from financing activities | ||||||||
Net increase in unsecured line of credit and short term borrowings | 287,000 | 71,000 | ||||||
Proceeds from notes payable | 99,841 | -- | ||||||
Repayment of notes payable | (291,658 | ) | (16,716 | ) | ||||
Distributions to shareholders and minority interests | (92,957 | ) | (90,739 | ) | ||||
Redemption of perpetual preferred units | (35,500 | ) | -- | |||||
Net increase in accounts receivable - affiliates | (1,294 | ) | (920 | ) | ||||
Repayment of notes receivable - affiliates | -- | 1,800 | ||||||
Increase in notes receivable - affiliates | (993 | ) | -- | |||||
Common share options exercised | 7,015 | 3,676 | ||||||
Payment of deferred financing costs | (1,858 | ) | (891 | ) | ||||
Other | 593 | 843 | ||||||
Net cash used in financing activities | (29,811 | ) | (31,947 | ) | ||||
Net (decrease) increase in cash and cash equivalents | (892 | ) | 1,936 | |||||
Cash and cash equivalents, beginning of period | 3,357 | 405 | ||||||
Cash and cash equivalents, end of period | $ | 2,465 | $ | 2,341 | ||||
Supplemental Information | ||||||||
Cash paid for interest, net of interest capitalized | $ | 58,582 | $ | 50,554 | ||||
Interest capitalized | 6,965 | 12,267 | ||||||
Supplemental schedule of noncash investing and financing activities | ||||||||
Value of shares issued under benefit plans, net | $ | 5,710 | $ | 2,302 | ||||
Conversion of operating partnership units to common shares | -- | 318 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2004 | 2003 | 2004 | 2003 | |||||||||||
Net income, as reported | $ | 5,807 | $ | 5,938 | $ | 22,849 | $ | 20,180 | ||||||
Add: stock-based employee compensation expense included in reported net income | 877 | 865 | 2,768 | 2,513 | ||||||||||
Deduct: total stock-based employee compensation expense determined under fair value method for all awards | (1,150 | ) | (1,180 | ) | (3,525 | ) | (3,206 | ) | ||||||
Pro forma net income | $ | 5,534 | $ | 5,623 | $ | 22,092 | $ | 19,487 | ||||||
Net income per share: | ||||||||||||||
Basic - as reported | $ | 0.14 | $ | 0.15 | $ | 0.57 | $ | 0.51 | ||||||
Basic - pro forma | 0.14 | 0.14 | 0.55 | 0.50 | ||||||||||
Diluted - as reported | 0.14 | 0.14 | 0.54 | 0.49 | ||||||||||
Diluted - pro forma | 0.13 | 0.14 | 0.52 | 0.47 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2004 | 2003 | 2004 | 2003 | |||||||||||
Basic earnings per share calculation | ||||||||||||||
Net income | $ | 5,807 | $ | 5,938 | $ | 22,849 | $ | 20,180 | ||||||
Net income - per share | $ | 0.14 | $ | 0.15 | $ | 0.57 | $ | 0.51 | ||||||
Weighted average number of common shares outstanding | 40,377 | 39,290 | 40,234 | 39,224 | ||||||||||
Diluted earnings per share calculation | ||||||||||||||
Net Income | $ | 5,807 | $ | 5,938 | $ | 22,849 | $ | 20,180 | ||||||
Income allocated to common units | 8 | 9 | 32 | 23 | ||||||||||
Net income, as adjusted | $ | 5,815 | $ | 5,947 | $ | 22,881 | $ | 20,203 | ||||||
Net income, as adjusted - per share | $ | 0.14 | $ | 0.14 | $ | 0.54 | $ | 0.49 | ||||||
Weighted average common shares outstanding | 40,377 | 39,290 | 40,234 | 39,224 | ||||||||||
Incremental shares issuable from assumed conversion of: | ||||||||||||||
Common share options and awards granted | 1,635 | 1,613 | 1,585 | 1,379 | ||||||||||
Common units | 562 | 562 | 562 | 567 | ||||||||||
Weighted average common shares outstanding, as adjusted | 42,574 | 41,465 | 42,381 | 41,170 | ||||||||||
Location | Property Type (s) | Status | Apartment Homes At 9/30/04 | Sept 30, 2004 | Dec 31, 2003 | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dallas/Fort Worth, Texas | Multifamily | Stabilized | 1,314 | $ | 17.9 | $ | 11.4 | ||||||||||
Las Vegas, Nevada | Multifamily | Stabilized/Development | 560 | 7.9 | 7.4 | ||||||||||||
Reno, Nevada | Multifamily | Stabilized | 450 | 5.5 | 5.4 | ||||||||||||
Tampa, Florida | Multifamily | Stabilized | 370 | 5.0 | -- | ||||||||||||
Houston, Texas | Multifamily/Commercial | Predevelopment/Development | -- | 4.7 | 4.7 | ||||||||||||
San Jose, California | Multifamily | Stabilized | 117 | 3.6 | 3.6 | ||||||||||||
Denver, Colorado | Multifamily | Stabilized | 279 | 3.5 | 3.5 | ||||||||||||
Atlanta, Georgia | Multifamily | Stabilized | 360 | 3.0 | 3.0 | ||||||||||||
Austin, Texas | Multifamily | Stabilized | 296 | 2.5 | 2.4 | ||||||||||||
Total | 3,746 | $ | 53.6 | $ | 41.4 | ||||||||||||
September 30, 2004 | December 31, 2003 | |||||||
---|---|---|---|---|---|---|---|---|
Unsecured line of credit and short term borrowings | $ | 334.0 | $ | 47.0 | ||||
Senior unsecured notes | ||||||||
7.14% Notes, due 2004 | -- | 199.9 | ||||||
7.11% - 7.28% Notes, due 2006 | 174.7 | 174.5 | ||||||
5.98% Notes, due 2007 | 149.6 | 149.5 | ||||||
4.74% Notes, due 2009 | 99.8 | -- | ||||||
6.77% Notes, due 2010 | 99.9 | 99.9 | ||||||
7.69% Notes, due 2011 | 149.5 | 149.5 | ||||||
5.93% Notes, due 2012 | 199.3 | 199.2 | ||||||
5.45% Notes, due 2013 | 198.9 | 198.9 | ||||||
1,071.7 | 1,171.4 | |||||||
Medium term notes | ||||||||
6.88% - 7.17% Notes, due 2004 | -- | 30.0 | ||||||
7.63% Notes, due 2009 | 15.0 | 15.0 | ||||||
6.79% Notes, due 2010 | 14.5 | 14.5 | ||||||
29.5 | 59.5 | |||||||
Total unsecured notes | 1,435.2 | 1,277.9 | ||||||
Secured notes | ||||||||
7.10% - 8.50% Conventional Mortgage Notes, due 2006 - 2009 | 72.3 | 133.2 | ||||||
1.82% - 7.29% Tax-exempt Mortgage Notes, due 2025 - 2032 | 97.8 | 98.6 | ||||||
170.1 | 231.8 | |||||||
Total notes payable | $ | 1,605.3 | $ | 1,509.7 | ||||
Nine Months Ended September 30, | ||||||||
---|---|---|---|---|---|---|---|---|
2004 | 2003 | |||||||
Decrease (increase) in assets: | ||||||||
Other assets, net | $ | (5,512 | ) | $ | 1,114 | |||
Restricted cash | 2,396 | 158 | ||||||
Increase (decrease) in liabilities: | ||||||||
Accounts payable | 2,656 | (12,164 | ) | |||||
Accrued real estate taxes | 4,975 | 4,943 | ||||||
Accrued expenses and other liabilities | 6,744 | 11,492 | ||||||
Net change in operating accounts | $ | 11,259 | $ | 5,543 | ||||
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 | the performance of our mezzanine financing program; | |||||||
o | changes in governmental regulations, tax rates and similar matters; and | |||||||
o | environmental uncertainties and disasters. |
September 30, 2004 | December 31, 2003 | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apartment Homes | Properties | Apartment Homes | Properties | |||||||||||
Operating Properties | ||||||||||||||
West Region | ||||||||||||||
Las Vegas, Nevada (a) | 9,625 | 33 | 9,625 | 33 | ||||||||||
Denver, Colorado (a) | 2,529 | 8 | 2,529 | 8 | ||||||||||
Phoenix, Arizona | 2,433 | 8 | 2,433 | 8 | ||||||||||
Los Angeles/Orange County, California | 2,191 | 5 | 1,653 | 4 | ||||||||||
San Diego/Inland Empire, California | 846 | 3 | 846 | 3 | ||||||||||
Tucson, Arizona | 821 | 2 | 821 | 2 | ||||||||||
Central Region | ||||||||||||||
Dallas, Texas | 8,359 | 23 | 8,359 | 23 | ||||||||||
Houston, Texas | 6,810 | 15 | 6,810 | 15 | ||||||||||
St. Louis, Missouri | 2,123 | 6 | 2,123 | 6 | ||||||||||
Austin, Texas | 1,745 | 6 | 1,745 | 6 | ||||||||||
Corpus Christi, Texas | 1,410 | 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 | 52,008 | 145 | 51,344 | 144 | ||||||||||
Properties Under Development | ||||||||||||||
West Region | ||||||||||||||
Los Angeles/Orange County, California | -- | -- | 538 | 1 | ||||||||||
Central Region | ||||||||||||||
Dallas, Texas | 284 | 1 | -- | -- | ||||||||||
East Region | ||||||||||||||
Orlando, Florida | 366 | 1 | -- | -- | ||||||||||
Northern Virginia (a) | 464 | 1 | 464 | 1 | ||||||||||
Total Properties Under Development | 1,114 | 3 | 1,002 | 2 | ||||||||||
Total Properties | 53,122 | 148 | 52,346 | 146 | ||||||||||
Less: Joint Venture Properties (a) | 5,011 | 18 | 5,011 | 18 | ||||||||||
Total Properties Owned 100% | 48,111 | 130 | 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,16 properties with 4,227 apartment homes in Nevada in which we own a 20% interest, the remaining interest is owned by an unaffiliated private investor, and one property with 464 units currently under development in Virginia in which we own a 20% interest, the remaining interest is owned by an unaffiliated private investor. |
18 Development and Lease-Up Properties At September 30, 2004, we had one completed property in lease-up as follows: ($ in millions) |
Property and Location | Number of Apartment Homes | Cost to Date | % Leased at 11/01/04 | Date of Completion | Estimated Date of Stablization | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Camden Harbor View | |||||||||||||||||
Long Beach, CA | 538 | $ | 142.7 | 84 | % | 2Q04 | 4Q04 |
At September 30, 2004, we had three properties in various stages of construction as follows: ($ in millions) |
Property and Location | Number of Apartment Homes | Estimated Cost | Cost Incurred At 9/30/04 | Estimated Date of Completion | Estimated Date of Stablization | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Under Construction | |||||||||||||||||
Camden Farmers Market II | |||||||||||||||||
Dallas, TX | 284 | $ | 31.7 | $ | 14.6 | 3Q05 | 1Q06 | ||||||||||
Camden Lago Vista | |||||||||||||||||
Orlando, FL | 366 | 34.8 | 14.5 | 3Q05 | 1Q06 | ||||||||||||
Total | 650 | $ | 66.5 | $ | 29.1 | ||||||||||||
Under Construction - JV's | |||||||||||||||||
Camden Westwind | |||||||||||||||||
Ashburn, VA | 464 | $ | 69.1 | $ | 37.9 | 1Q06 | 4Q06 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2004 | 2003 | 2004 | 2003 | |||||||||||
Average monthly property revenue per apartment home | $ | 749 | $ | 733 | $ | 745 | $ | 722 | ||||||
Annualized total property expenses per apartment home | $ | 3,826 | $ | 3,681 | $ | 3,698 | $ | 3,555 | ||||||
Weighted average number of operating apartment homes owned 100% | 47,192 | 46,581 | 47,039 | 46,237 | ||||||||||
Weighted average occupancy, by region | ||||||||||||||
West | 95.8 | % | 95.0 | % | 95.2 | % | 93.8 | % | ||||||
Central | 91.7 | % | 93.0 | % | 93.1 | % | 91.2 | % | ||||||
East | 95.1 | % | 94.2 | % | 94.1 | % | 92.8 | % | ||||||
Total operating properties owned 100% | 93.8 | % | 93.9 | % | 94.0 | % | 92.4 | % |
Apartment Homes | Three Months Ended September 30, | Change | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
at 9/30/04 | 2004 | 2003 | $ | % | |||||||||||||
Property revenues | |||||||||||||||||
Same property communities | 44,481 | $ | 97,057 | $ | 96,553 | $ | 504 | 0.5 | % | ||||||||
Non-same property communities | 2,442 | 6,727 | 5,192 | 1,535 | 29.6 | ||||||||||||
Development and lease-up communities | 1,188 | 2,067 | 436 | 1,631 | 374.1 | ||||||||||||
Dispositions/other | -- | 133 | 197 | (64 | ) | (32.5 | ) | ||||||||||
Total property revenues | 48,111 | 105,984 | 102,378 | 3,606 | 3.5 | ||||||||||||
Property expenses | |||||||||||||||||
Same property communities | 44,481 | 41,202 | 40,206 | 996 | 2.5 | ||||||||||||
Non-same property communities | 2,442 | 2,754 | 2,403 | 351 | 14.6 | ||||||||||||
Development and lease-up communities | 1,188 | 1,055 | 80 | 975 | -- | ||||||||||||
Dispositions/other | -- | 130 | 175 | (45 | ) | (25.7 | ) | ||||||||||
Total property expenses | 48,111 | 45,141 | 42,864 | 2,277 | 5.3 | ||||||||||||
Property net operating income | |||||||||||||||||
Same property communities | 44,481 | 55,855 | 56,347 | (492 | ) | (0.9 | ) | ||||||||||
Non-same property communities | 2,442 | 3,973 | 2,789 | 1,184 | 42.5 | ||||||||||||
Development and lease-up communities | 1,188 | 1,012 | 356 | 656 | 184.3 | ||||||||||||
Dispositions/other | -- | 3 | 22 | (19 | ) | (86.4 | ) | ||||||||||
Total property net operating income | 48,111 | $ | 60,843 | $ | 59,514 | $ | 1,329 | 2.2 | % | ||||||||
Apartment Homes | Nine Months Ended September 30, | Change | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
at 9/30/04 | 2004 | 2003 | $ | % | |||||||||||||
Property revenues | |||||||||||||||||
Same property communities | 44,481 | $ | 290,318 | $ | 286,439 | $ | 3,879 | 1.4 | % | ||||||||
Non-same property communities | 2,442 | 19,875 | 12,997 | 6,878 | 52.9 | ||||||||||||
Development and lease-up communities | 1,188 | 4,885 | 598 | 4,287 | 716.9 | ||||||||||||
Dispositions/other | -- | 402 | 492 | (90 | ) | (18.3 | ) | ||||||||||
Total property revenues | 48,111 | 315,480 | 300,526 | 14,954 | 5.0 | ||||||||||||
Property expenses | |||||||||||||||||
Same property communities | 44,481 | 119,564 | 116,536 | 3,028 | 2.6 | ||||||||||||
Non-same property communities | 2,442 | 8,206 | 6,123 | 2,083 | 34.0 | ||||||||||||
Development and lease-up communities | 1,188 | 2,268 | 132 | 2,136 | -- | ||||||||||||
Dispositions/other | -- | 422 | 472 | (50 | ) | (10.6 | ) | ||||||||||
Total property expenses | 48,111 | 130,460 | 123,263 | 7,197 | 5.8 | ||||||||||||
Property net operating income | |||||||||||||||||
Same property communities | 44,481 | 170,754 | 169,903 | 851 | 0.5 | ||||||||||||
Non-same property communities | 2,442 | 11,669 | 6,874 | 4,795 | 69.8 | ||||||||||||
Development and lease-up communities | 1,188 | 2,617 | 466 | 2,151 | 461.6 | ||||||||||||
Dispositions/other | -- | (20 | ) | 20 | (40 | ) | (200.0 | ) | |||||||||
Total property net operating income | 48,111 | $ | 185,020 | $ | 177,263 | $ | 7,757 | 4.4 | % | ||||||||
(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 rate debt; | |||||||
(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, acquisitions and mezzanine financings; | |||||||
(v) | common share repurchases; and | |||||||
(vi) | distributions on our common and preferred equity. |
Total | 2004 | 2005 | 2006 | 2007 | 2008 | Thereafter | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Debt maturities | $ | 1,605.3 | $ | 0.8 | $ | 3.2 | $ | 544.2 | $ | 165.3 | $ | 17.8 | $ | 874.0 | ||||||||||||
Non-cancelable operating lease payments | 10.6 | 0.5 | 1.9 | 1.6 | 1.5 | 1.0 | 4.1 | |||||||||||||||||||
Construction contracts | 31.1 | 9.9 | 21.2 | -- | -- | -- | -- | |||||||||||||||||||
$ | 1,647.0 | $ | 11.2 | $ | 26.3 | $ | 545.8 | $ | 166.8 | $ | 18.8 | $ | 878.1 | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2004 | 2003 | 2004 | 2003 | |||||||||||
Funds from operations: | ||||||||||||||
Net income | $ | 5,807 | $ | 5,938 | $ | 22,849 | $ | 20,180 | ||||||
Real estate depreciation | 26,741 | 25,844 | 78,987 | 77,129 | ||||||||||
Adjustments for unconsolidated joint ventures | 523 | 529 | 1,570 | 152 | ||||||||||
Income allocated to common units | 553 | 593 | 2,078 | 1,482 | ||||||||||
Funds from operations - diluted | $ | 33,624 | $ | 32,904 | $ | 105,484 | $ | 98,943 | ||||||
Weighted average shares - basic | ||||||||||||||
Incremental shares issuable from assumed conversion of : | 40,377 | 39,290 | 40,234 | 39,224 | ||||||||||
Common share options and awards granted | 1,635 | 1,613 | 1,585 | 1,379 | ||||||||||
Common units | 2,437 | 2,440 | 2,438 | 2,447 | ||||||||||
Weighted average shares - diluted | 44,449 | 43,343 | 44,257 | 43,050 | ||||||||||
PART II. OTHER INFORMATION | ||||
---|---|---|---|---|
Item 1. | Legal Proceedings | |||
Subsequent to September 30, 2004, a lawsuit relating to the proposed merger with Summit Properties, Inc. was filed naming us as one of the defendants. See Note 13 to the Consolidated Financial Statements. | ||||
Item 2. | Unregistered Sales of Equity 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 | |||
(a) Exhibits | ||||
2.1 | Agreement and Plan of Merger, dated as of October 4, 2004, among Camden Property Trust, Camden Summit, Inc. and Summit Properties Inc. Incorporated by reference from Exhibit 2.1 to the Current Report on Form 8-K of Camden Property Trust filed on October 5, 2004 (File No. 1-12110) | ||||||
2.2 | Amendment No. 1 to Agreement and Plan of Merger, dated October 6, 2004, among Camden Property Trust, Camden Summit, Inc. and Summit Properties Inc. Incorporated by reference from Exhibit 2.1 to the Current Report on Form 8-K of Camden Property Trust filed on October 6, 2004 (File No. 1-12110) | ||||||
10.1 | Voting Agreement, dated October 4, 2004, among Camden Property Trust, William B. McGuire, Jr. and William F. Paulsen. Incorporated by reference from Exhibit 10.1 to the Current Report on Form 8-K of Camden Property Trust filed on October 5, 2004 (File No. 1-12110) | ||||||
31.1 | Certification pursuant to Rule 13a-14(a) of Chief Executive Officer dated November 9, 2004. |
31 |
31.2 | Certification pursuant to Rule 13a-14(a) of Chief Financial Officer dated November 9, 2004. | ||||||
32.1 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes - Oxley Act of 2002. |
/s/ Dennis M. Steen | November 9, 2004 | ||
Dennis M. Steen Chief Financial Officer, Sr. Vice President- Finance and Secretary | Date |
33 |