Camden Property Trust · Earnings release

CAMDEN PROPERTY TRUST ANNOUNCES THIRD QUARTER 2024 OPERATING RESULTS

Houston, Texas (October 31, 2024) - Camden Property Trust (NYSE:CPT) (the "Company") announced today operating results for the three and nine months ended September 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 nine months ended September 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 September 30,

Nine Months Ended September 30,

Per Diluted Share

EPS(1)

FFO

Core FFO

Core AFFO

Three Months Ended

Per Diluted Share

Midpoint

Variance

EPS(1)

FFO

Core FFO

(1) For the three and nine months ended September 30, 2024, EPS included approximately $0.37 per share of impairments associated with land development activities.

During the quarter, Camden decided not to move forward at the present time with four predevelopment projects. These decisions were made as part of a strategic review taking into consideration the Company’s current portfolio concentrations and the overall operating environments in those markets or submarkets. The Company recognized a non-cash charge of approximately $41.0 million, or $0.37 per diluted share, of impairment expenses related to land development projects located in Los Angeles, CA, Houston, TX, and Atlanta, GA. These reductions primarily reflect the carrying and other costs incurred since acquiring those development sites. Camden will also cease capitalizing interest and expenses associated with these assets going forward.

Quarterly Growth

Sequential Growth

Year-To-Date Growth

Same Property Results

Revenues

Expenses

Net Operating Income ("NOI")

Same Property Results

Occupancy

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.

1

Operating Statistics - Same Property Portfolio

New Lease and Renewal Data - Date Signed (1)

Signed New Lease Rates

Signed Renewal Rates

Signed Blended Lease Rates

New Lease and Renewal Data - Date Effective (2)

Effective New Lease Rates

Effective Renewal Rates

Effective Blended Lease Rates

*Preliminary data as of October 30, 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 and Bad Debt

Occupancy

Bad Debt

NA

*Preliminary data as of October 30, 2024

Development Activity

During the quarter, leasing continued at Camden Woodmill Creek in Spring, TX, 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

Total

% Leased

Community Name

Location

Homes

Cost

Camden Woodmill Creek

Spring, TX

%

Development Communities - Construction Ongoing ($ in millions)

Total

Total

% Leased

Community Name

Location

Homes

Estimated Cost

Camden Durham

Durham, NC

%

Camden Long Meadow Farms

Richmond, TX

%

Camden Village District

Raleigh, NC

Camden South Charlotte

Charlotte, NC

Camden Blakeney

Charlotte, NC

Total

Liquidity Analysis

As of September 30, 2024, Camden had nearly $1.1 billion of liquidity comprised of approximately $31.2 million in cash and cash equivalents, and over $1.0 billion of availability under its unsecured credit facility. At quarter-end, the Company had approximately $267.0 million left to fund under its existing wholly-owned development pipeline.

During the quarter, Camden utilized cash on hand and its unsecured revolving credit facility to repay its 3.68% $250.0 million senior unsecured notes payable which matured in September 2024. Also during the quarter, the Company extended the maturity date of its $40 million unsecured floating rate term loan to 2026.

Hurricane Impact

During the quarter, Hurricane Beryl impacted several of our multifamily communities in the Houston, TX area and we incurred approximately $2.1 million of storm-related expenses, net of anticipated insurance recoveries. Camden expects no material charges related to either Hurricane Helene or Hurricane Milton.

2

Earnings Guidance

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

Per Diluted Share

Range

Range

Current

Prior

Change

G1G2EPS

G3G4FFO

G5G6Core FFO(1)

(1) The Company's 2024 core FFO guidance excludes approximately $0.12 per share of non-core charges for casualty-related expenses, severance, legal costs, loss on early retirement of debt, expensed pursuit costs, and advocacy contributions.

Same Property Growth Guidance

Range

Current

Prior

Change

G7Revenues

G8Expenses

G9NOI

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

Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061; Passcode: 6652140

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.

3

CAMDEN

OPERATING RESULTS

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

OPERATING DATA

Property revenues (a)

Property expenses

Property operating and maintenance

Real estate taxes

Total property expenses

Non-property income

Fee and asset management

Interest and other income

Income/(loss) on deferred compensation plans

Total non-property income

Other expenses

Property management

Fee and asset management

General and administrative

Interest

Depreciation and amortization

Expense/(benefit) on deferred compensation plans

Total other expenses

Impairment associated with land development activities

—

—

Loss on early retirement of debt

—

—

Gain on sale of operating property

—

—

Income (loss) from continuing operations before income taxes

Income tax expense

Net income (loss)

Less income allocated to non-controlling interests

Net income (loss) attributable to common shareholders

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Net income (loss)

Other comprehensive income (loss)

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

Comprehensive income (loss)

Less income allocated to non-controlling interests

Comprehensive income (loss) attributable to common shareholders

PER SHARE DATA

Total earnings/(loss) per common share - basic

Total earnings/(loss) per common share - diluted

Weighted average number of common shares outstanding:

Basic

Diluted

(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 September 30, 2024, we recognized $387.2 million of property revenue which consisted of approximately $344.9 million of rental revenue and approximately $42.3 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 $390.8 million recognized for the three months ended September 30, 2023, made up of approximately $347.7 million of rental revenue and approximately $43.1 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts.

For the nine months ended September 30, 2024, we recognized $1,157.5 million of property revenue which consisted of approximately $1,031.0 million of rental revenue and approximately $126.5 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. This compared to the $1,154.4 million of property revenue recognized for the nine months ended September 30, 2023, made up of approximately $1,028.0 million of rental revenue and approximately $126.4 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 $10.7 million and $10.5 million for the three months ended September 30, 2024 and 2023, respectively and was $31.9 million and $31.3 million for the nine months ended September 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.

4

CAMDEN

FUNDS FROM OPERATIONS

(In thousands, except per share and property data amounts)

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

FUNDS FROM OPERATIONS

Net income (loss) attributable to common shareholders

Real estate depreciation and amortization

Income allocated to non-controlling interests

Gain on sale of operating properties

—

—

Impairment associated with land development activities

—

—

Funds from operations

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

Plus: Severance

—

—

—

Plus: Legal costs and settlements, net of recoveries

—

Plus: Loss on early retirement of debt

—

—

Plus: Expensed development & other pursuit costs

—

Plus: Advocacy contributions

—

—

Less: Miscellaneous (income)/expense

—

—

—

Core funds from operations

Less: recurring capitalized expenditures (a)

Core adjusted funds from operations

PER SHARE DATA

Funds from operations - diluted

Core funds from operations - diluted

Core adjusted funds from operations - diluted

Distributions declared per common share

Weighted average number of common shares outstanding:

FFO/Core FFO/Core AFFO - diluted

PROPERTY DATA

Total operating properties (end of period) (b)

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

Total operating apartment homes (weighted average)

.

(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.

5

CAMDEN

BALANCE SHEETS

(In thousands)

(Unaudited)

ASSETS

Real estate assets, at cost

Land

Buildings and improvements

Accumulated depreciation

Net operating real estate assets

Properties under development and land

Total real estate assets

Accounts receivable – affiliates

Other assets, net (a)

Cash and cash equivalents

Restricted cash

Total assets

LIABILITIES AND EQUITY

Liabilities

Notes payable

Unsecured

Secured

Accounts payable and accrued expenses

Accrued real estate taxes

Distributions payable

Other liabilities (b)

Total liabilities

Equity

Common shares of beneficial interest

Additional paid-in capital

Distributions in excess of net income attributable to common shareholders

Treasury shares

Accumulated other comprehensive income/(loss) (c)

Total common equity

Non-controlling interests

Total equity

Total liabilities and equity

(a) Includes net deferred charges of:

(b) Includes deferred revenues of:

(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.

6

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 and losses from the sale of certain real estate assets, gains and losses from change in control, impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, 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 and losses on dispositions of real estate, impairment write-downs of certain real estate assets, 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. 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 September 30,

Nine Months Ended September 30,

Net income (loss) attributable to common shareholders

Real estate depreciation and amortization

Income allocated to non-controlling interests

Gain on sale of operating properties

—

—

Impairment associated with land development activities

—

—

Funds from operations

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

Plus: Severance

—

—

—

Plus: Legal costs and settlements, net of recoveries

—

Plus: Loss on early retirement of debt

—

—

Plus: Expensed development & other pursuit costs

—

Plus: Advocacy contributions

—

—

Less: Miscellaneous (income)/expense

—

—

—

Core funds from operations

Less: recurring capitalized expenditures

Core adjusted funds from operations

Weighted average number of common shares outstanding:

EPS diluted

FFO/Core FFO/ Core AFFO diluted

7

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 September 30,

Nine Months Ended September 30,

Total Earnings Per Common Share - Diluted

Real estate depreciation and amortization

Income allocated to non-controlling interests

Gain on sale of operating property

—

—

Impairment associated with land development activities

—

—

FFO per common share - Diluted

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

—

—

Plus: Severance

—

—

—

—

Plus: Legal costs and settlements, net of recoveries

—

—

Plus: Loss on early retirement of debt

—

—

Plus: Expensed development & other pursuit costs

—

—

Plus: Advocacy contributions

—

—

Less: Miscellaneous (income)/expense

—

—

—

—

Core FFO per common share - Diluted

Less: recurring capitalized expenditures

Core AFFO per common share - Diluted

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:

Range

Range

Low

High

Low

High

Expected earnings per common share - diluted

Expected real estate depreciation and amortization

Expected income allocated to non-controlling interests

Expected (gain) on sale of operating properties

—

—

Impairment associated with land development activities

—

—

Expected FFO per share - diluted

Anticipated Adjustments to FFO

Expected Core FFO per share - diluted

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

8

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 September 30,

Nine months ended September 30,

Net income (loss)

Less: Fee and asset management income

Less: Interest and other income

Less: Income/(loss) on deferred compensation plans

Plus: Property management expense

Plus: Fee and asset management expense

Plus: General and administrative expense

Plus: Interest expense

Plus: Depreciation and amortization expense

Plus: Expense/(benefit) on deferred compensation plans

Plus: Impairment associated with land development activities

—

—

Plus: Loss on early retirement of debt

—

—

Less: Gain on sale of operating property

—

—

Plus: Income tax expense

NOI

"Same Property" Communities

Non-"Same Property" Communities

Development and Lease-Up Communities

Disposition/Other

NOI

9

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 from the sale of certain real estate assets, including gains/losses on change of control, plus impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, and adjustments to reflect the Company’s share of EBITDAre of unconsolidated joint ventures.

Adjusted EBITDAre represents EBITDAre as further adjusted for non-core items. 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, and impairment write-downs of certain real estate assets. Annualized Adjusted EBITDAre is Adjusted EBITDAre as reported for the period multiplied by 4 for quarter results or 1.33 for 9 month results. A reconciliation of net income to EBITDAre and adjusted EBITDAre is provided below:

Three months ended September 30,

Nine months ended September 30,

Net income (loss)

Plus: Interest expense

Plus: Depreciation and amortization expense

Plus: Income tax expense

Less: Gain on sale of operating property

—

—

Plus: Impairment associated with land development activities

—

—

EBITDAre

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

Plus: Severance

—

—

—

Plus: Legal costs and settlements, net of recoveries

—

Plus: Loss on early retirement of debt

—

—

Plus: Expensed development & other pursuit costs

—

Plus: Advocacy contributions

—

—

Less: Miscellaneous (income)/expense

—

—

—

Adjusted EBITDAre

Annualized Adjusted EBITDAre

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

Average monthly balance for the

Three months ended September 30,

Nine months ended September 30,

Unsecured notes payable

Secured notes payable

Total debt

Less: Cash and cash equivalents

Net debt

Net Debt to Annualized Adjusted EBITDAre:

Three months ended September 30,

Nine months ended September 30,

Net debt

Annualized Adjusted EBITDAre

Net Debt to Annualized Adjusted EBITDAre