Business Wire | Apr 29, 2021 04:15PM EDT

Camden Property Trust Announces First Quarter 2021 Operating Results

Apr. 29, 2021

HOUSTON--(BUSINESS WIRE)--Apr. 29, 2021--Camden Property Trust (NYSE:CPT) (the "Company") announced today operating results for the three months ended March 31, 2021. Net Income Attributable to Common Shareholders ("EPS"), Funds from Operations ("FFO"), and Adjusted Funds from Operations ("AFFO") for the three months ended March 31, 2021 are detailed below. A reconciliation of EPS to FFO is included in the financial tables accompanying this press release.

Three Months Ended

March 31

Per Diluted Share 2021 2020

EPS $0.31 $0.43

FFO $1.24 $1.35

AFFO $1.12 $1.20

Quarterly Growth Sequential Growth

Same Property Results 1Q21 vs. 1Q20 1Q21 vs. 4Q20

Revenues (0.4)% 0.1%

Expenses 5.4% 0.3%

Net Operating Income ("NOI") (3.5)% 0.1%

Same Property Results1Q21

1Q20

4Q20

Occupancy

96.0%

96.0%

95.5%

For 2021, the Company defines same property communities as communities owned and stabilized since January 1, 2020, 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.

April Collections

Same Property Results 1Q21 1Q20 4Q20

Occupancy 96.0% 96.0% 95.5%

For 2021, the Company defines same property communities as communities owned and stabilized since January 1, 2020, 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.

April Collections

Same Property Scheduled Rents* April 2021 April 2020 1Q21 1Q20

Collected 98.0% 94.3% 98.4% 97.9%

Deferred/Payment Plan Arranged -% 2.5% -% -%

Delinquent 2.0% 3.2% 1.6% 2.1%

*Rent is recognized as earned. The Company evaluates collectability on anongoing basis and any accounts considered uncollectable are recorded againstproperty revenues.

Operating Statistics - Same Property Portfolio

New Lease and Renewal Data - Date Signed ^ April April 1Q21^ 1Q20^(1) (2) 2021* 2020 (2) (2)

New Lease Rates 4.5% (2.5)% (0.8)% 0.4%

Renewal Rates 4.7% 0.1% 3.4% 4.3%

Blended Rates 4.6% (0.8)% 1.2% 2.5%



New Leases 1,692 1,366 1,734 1,529

Renewals 1,590 2,568 1,604 1,768

Total Leases 3,282 3,934 3,338 3,297

New Lease and Renewal Data - Date Effective (3) (4)

April 2021*

April 2020

1Q21(4)

1Q20(4)

New Lease Rates

1.7%

(1.4)%

(2.2)%

0.2%

Renewal Rates

3.1%

4.4%

2.9%

4.8%

Blended Rates

2.4%

2.1%

0.2%

2.4%

New Leases

1,456

1,124

1,539

1,463

Renewals

1,464

1,720

1,378

1,405

Total Leases

2,920

2,844

2,917

2,868

*Data as of April 26, 2021

(1) Average change in same property new lease and renewal rates vs. expiring lease rates when signed.

(2) Data represents average monthly leases signed during the period.

(3) Average change in same property new lease and renewal rates vs. expiring lease rates when effective.

(4) Data represents average monthly leases effective during the period.

New Lease and Renewal Data - Date Effective^ April April 1Q21^ 1Q20^(3) (4) 2021* 2020 (4) (4)

New Lease Rates 1.7% (1.4)% (2.2)% 0.2%

Renewal Rates 3.1% 4.4% 2.9% 4.8%

Blended Rates 2.4% 2.1% 0.2% 2.4%



New Leases 1,456 1,124 1,539 1,463

Renewals 1,464 1,720 1,378 1,405

Total Leases 2,920 2,844 2,917 2,868

*Data as of April 26, 2021

(1) Average change in same property new lease and renewal rates vs. expiringlease rates when signed.

(2) Data represents average monthly leases signed during the period.

(3) Average change in same property new lease and renewal rates vs. expiringlease rates when effective.

(4) Data represents average monthly leases effective during the period.

Occupancy and Turnover Data

April 2021*

April 2020

1Q21

1Q20

Occupancy

96.6%

95.5%

96.0%

96.0%

Annualized Gross Turnover

47%

47%

45%

46%

Annualized Net Turnover

37%

37%

35%

37%

*Data as of April 26, 2021

Development Activity

During the quarter, construction commenced at Camden Durham in Durham, NC, and leasing began at two communities: Camden Lake Eola in Orlando, FL, and Camden Buckhead in Atlanta, GA. Subsequent to quarter-end, leasing began at Camden Hillcrest in San Diego, CA.

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

Occupancy and Turnover Data April 2021* April 2020 1Q21 1Q20

Occupancy 96.6% 95.5% 96.0% 96.0%

Annualized Gross Turnover 47% 47% 45% 46%

Annualized Net Turnover 37% 37% 35% 37%

*Data as of April 26, 2021

Development Activity

During the quarter, construction commenced at Camden Durham in Durham, NC, and leasing began at two communities: Camden Lake Eola in Orlando, FL, and Camden Buckhead in Atlanta, GA. Subsequent to quarter-end, leasing began at Camden Hillcrest in San Diego, CA.

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

Total Total % Leased

Community Name Location Homes Cost as of 4/26/2021

Camden Downtown I Houston, TX 271 $131.5 72 %

Camden RiNo Denver, CO 233 78.9 96 %

Camden Cypress Creek II (JV) Cypress, TX 234 31.9 87 %

Total 738 $242.3

Development Communities - Construction Ongoing ($ in millions)

Total Total % Leased

Community Name Location Homes Estimated Cost as of 4/26/2021

Camden North End II Phoenix, AZ 343 $90.0 48 %

Camden Lake Eola Orlando, FL 360 125.0 11 %

Camden Buckhead Atlanta, GA 366 160.0 15 %

Camden Hillcrest San Diego, CA 132 95.0 3 %

Camden Atlantic Plantation, FL 269 100.0

Camden Tempe II Tempe, AZ 397 115.0

Camden NoDa Charlotte, NC 387 105.0

Camden Durham Durham, NC 354 120.0

Total 2,608 $910.0

Liquidity Analysis

As of March 31, 2021, Camden had approximately $1.2 billion of liquidity comprised of approximately $333 million in cash and cash equivalents and no amounts outstanding on its $900 million unsecured credit facility. The Company has no scheduled debt maturities until 2022, and at quarter-end had $358 million left to fund under its existing wholly-owned development pipeline. As of March 31, 2021, Camden had outstanding letters of credit totaling approximately $12 million, which reduced the availability under its unsecured credit facility to $888 million.

Earnings Guidance

Camden updated its earnings guidance for 2021 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for second quarter 2021 as detailed below.

2Q21 2021 2021 Midpoint

Per Diluted Share Range Range Current Prior Change

EPS $0.25 - $0.31 $0.84 - $1.14 $0.99 $0.91 $0.08

FFO $1.22 - $1.28 $4.94 - $5.24 $5.09 $5.00 $0.09



2021 2021 Midpoint

Same Property Growth Range Current Prior Change

Revenues 0.85% - 2.35% 1.60% 0.75% 0.85%

Expenses 3.50% - 4.30% 3.90% 3.50% 0.40%

NOI (1.10)% - 1.60% 0.25% (0.85)% 1.10%

Camden intends to update its earnings guidance to the market on a quarterly basis. Additional information on the Company's 2021 financial outlook and a reconciliation of expected EPS to expected FFO are included in the financial tables accompanying this press release.

Conference Call

Friday, April 30, 2021 at 10:00 AM CT Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061 Passcode: 4025578 Webcast: https://services.choruscall.com/links/cpt210430.html

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 400 Company, is a real estate company primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns interests in and operates 167 properties containing 56,851 apartment homes across the United States. Upon completion of 8 properties currently under development, the Company's portfolio will increase to 59,459 apartment homes in 175 properties. Camden has been recognized as one of the 100 Best Companies to Work For(r) by FORTUNE magazine for 14 consecutive years, most recently ranking #8. The Company also received a Glassdoor Employees' Choice Award in 2020, ranking #25 for large U.S. companies.

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 March 31,

2021 2020

OPERATING DATA



Property revenues ^(a) $267,568 $265,879



Property expenses

Property operating and maintenance 63,479 59,956

Real estate taxes 37,453 34,180

Total property expenses 100,932 94,136



Non-property income

Fee and asset management 2,206 2,527

Interest and other income 332 329

Income/(loss) on deferred compensation plans 3,626 (14,860 )

Total non-property income 6,164 (12,004 )



Other expenses

Property management 6,124 6,527

Fee and asset management 1,132 843

General and administrative 14,222 13,233

Interest 23,644 19,707

Depreciation and amortization 93,141 91,859

Expense/(benefit) on deferred compensation plans 3,626 (14,860 )

Total other expenses 141,889 117,309



Gain on sale of land - 382

Equity in income of joint ventures 1,914 2,122

Income from continuing operations before income taxes 32,825 44,934

Income tax expense (352 ) (467 )

Net income 32,473 44,467

Less income allocated to non-controlling interests (1,126 ) (1,183 )

Net income attributable to common shareholders $31,347 $43,284



CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Net income $32,473 $44,467

Other comprehensive income

Reclassification of net loss on cash flow hedgingactivities, prior service cost and net loss on post 373 366 retirement obligation

Comprehensive income 32,846 44,833

Less income allocated to non-controlling interests (1,126 ) (1,183 )

Comprehensive income attributable to common shareholders $31,720 $43,650



PER SHARE DATA



Total earnings per common share - basic $0.31 $0.43

Total earnings per common share - diluted 0.31 0.43



Weighted average number of common shares outstanding:

Basic 99,547 99,298

Diluted 99,621 99,380

(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 March 31, 2021, we recognized $267.6 million of property revenue which consisted of approximately $235.8 million of rental revenue and approximately $31.8 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 $265.9 million recognized for the three months ended March 31, 2020, made up of approximately $236.6 million of rental revenue and approximately $29.3 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 $7.7 million and $6.9 million for the three months ended March 31, 2021 and 2020, respectively.

Note: Please refer to the following pages for definitions and reconciliations of all non-GAAP financial measures presented in this document.

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 March 31, 2021, we recognized $267.6 million of property revenue which consisted of approximately $235.8 million of rental revenue and approximately $31.8 million of amounts received under contractual terms for other services(a) considered to be non-lease components within our lease contracts. This compares to property revenue of $265.9 million recognized for the three months ended March 31, 2020, made up of approximately $236.6 million of rental revenue and approximately $29.3 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 $7.7 million and $6.9 million for the three months ended March 31, 2021 and 2020, respectively.

Note: Please refer to the following pages for definitions and reconciliationsof 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 March 31,

2021

2020

FUNDS FROM OPERATIONS

Net income attributable to common shareholders

$31,347

$43,284

Real estate depreciation and amortization

90,707

89,511

Adjustments for unconsolidated joint ventures

2,599

2,242

Income allocated to non-controlling interests

1,126

1,282

Funds from operations

$125,779

$136,319

Less: recurring capitalized expenditures (a)

(12,680

)

(14,825

)

Adjusted funds from operations

$113,099

$121,494

PER SHARE DATA

Funds from operations - diluted

$1.24

$1.35

Adjusted funds from operations - diluted

1.12

1.20

Distributions declared per common share

0.83

0.83

Weighted average number of common shares outstanding:

FFO/AFFO - diluted

101,341

101,128

PROPERTY DATA

Total operating properties (end of period) (b)

167

164

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

56,851

56,112

Total operating apartment homes (weighted average)

49,439

49,017

CAMDEN FUNDS FROM OPERATIONS

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

(Unaudited)

Three Months Ended March 31,

2021 2020

FUNDS FROM OPERATIONS



Net income attributable to common shareholders $31,347 $43,284

Real estate depreciation and amortization 90,707 89,511

Adjustments for unconsolidated joint ventures 2,599 2,242

Income allocated to non-controlling interests 1,126 1,282

Funds from operations $125,779 $136,319



Less: recurring capitalized expenditures^ (a) (12,680 ) (14,825 )



Adjusted funds from operations $113,099 $121,494



PER SHARE DATA

Funds from operations - diluted $1.24 $1.35

Adjusted funds from operations - diluted 1.12 1.20

Distributions declared per common share 0.83 0.83



Weighted average number of common shares outstanding:

FFO/AFFO - diluted 101,341 101,128



PROPERTY DATA

Total operating properties (end of period) ^(b) 167 164

Total operating apartment homes in operating properties 56,851 56,112 (end of period) ^(b)

Total operating apartment homes (weighted average) 49,439 49,017

(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.

(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 reconciliationsof all non-GAAP financial measures presented in this document.

CAMDEN

BALANCE SHEETS

(In thousands)

(Unaudited)

Mar 31,2021

Dec 31,2020

Sep 30,2020

Jun 30,2020

Mar 31,2020

ASSETS

Real estate assets, at cost

Land

$1,233,937

$1,225,214

$1,216,942

$1,206,656

$1,206,130

Buildings and improvements

7,863,707

7,763,748

7,677,676

7,597,165

7,547,150

9,097,644

8,988,962

8,894,618

8,803,821

8,753,280

Accumulated depreciation

(3,124,504

)

(3,034,186

)

(2,944,769

)

(2,857,124

)

(2,770,848

)

Net operating real estate assets

5,973,140

5,954,776

5,949,849

5,946,697

5,982,432

Properties under development, including land

541,958

564,215

522,664

514,336

467,288

Investments in joint ventures

18,800

18,994

20,992

21,735

22,318

Total real estate assets

6,533,898

6,537,985

6,493,505

6,482,768

6,472,038

Accounts receivable - affiliates

19,502

20,158

20,152

21,432

20,344

Other assets, net (a)

213,126

216,276

217,534

211,823

196,544

Cash and cash equivalents

333,402

420,441

589,614

601,584

22,277

Restricted cash

4,105

4,092

3,918

4,093

4,367

Total assets

$7,104,033

$7,198,952

$7,324,723

$7,321,700

$6,715,570

LIABILITIES AND EQUITY

Liabilities

Notes payable

Unsecured

$3,167,557

$3,166,625

$3,225,799

$3,224,871

$2,606,876

Accounts payable and accrued expenses

159,111

175,608

183,654

167,453

156,841

Accrued real estate taxes

33,155

66,156

87,159

62,499

32,365

Distributions payable

84,282

84,147

84,137

84,138

84,112

Other liabilities (b)

185,852

189,829

177,967

172,172

164,052

Total liabilities

3,629,957

3,682,365

3,758,716

3,711,133

3,044,246

Equity

Common shares of beneficial interest

1,070

1,069

1,068

1,068

1,069

Additional paid-in capital

4,588,056

4,581,710

4,577,813

4,574,387

4,569,995

Distributions in excess of net income attributable to common shareholders

(842,628

)

(791,079

)

(737,556

)

(689,809

)

(623,570

)

Treasury shares

(335,511

)

(341,412

)

(341,831

)

(341,637

)

(342,778

)

Accumulated other comprehensive income (loss) (c)

(5,010

)

(5,383

)

(5,431

)

(5,797

)

(6,163

)

Total common equity

3,405,977

3,444,905

3,494,063

3,538,212

3,598,553

Non-controlling interests

68,099

71,682

71,944

72,355

72,771

Total equity

3,474,076

3,516,587

3,566,007

3,610,567

3,671,324

Total liabilities and equity

$7,104,033

$7,198,952

$7,324,723

$7,321,700

$6,715,570

(a) Includes net deferred charges of:

$2,031

$2,299

$2,686

$3,031

$3,399

(b) Includes deferred revenues of:

$256

$284

$314

$344

$375

(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 BALANCE SHEETS

(In thousands)

(Unaudited)

Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, 2021 2020 2020 2020 2020

ASSETS

Real estate assets, at cost

Land $1,233,937 $1,225,214 $1,216,942 $1,206,656 $1,206,130

Buildings and 7,863,707 7,763,748 7,677,676 7,597,165 7,547,150 improvements

9,097,644 8,988,962 8,894,618 8,803,821 8,753,280

Accumulated (3,124,504 ) (3,034,186 ) (2,944,769 ) (2,857,124 ) (2,770,848 ) depreciation

Net operating real 5,973,140 5,954,776 5,949,849 5,946,697 5,982,432 estate assets

Properties underdevelopment, 541,958 564,215 522,664 514,336 467,288 including land

Investments in 18,800 18,994 20,992 21,735 22,318 joint ventures

Total real estate 6,533,898 6,537,985 6,493,505 6,482,768 6,472,038 assets

Accountsreceivable - 19,502 20,158 20,152 21,432 20,344 affiliates

Other assets, net 213,126 216,276 217,534 211,823 196,544 ^(a)

Cash and cash 333,402 420,441 589,614 601,584 22,277 equivalents

Restricted cash 4,105 4,092 3,918 4,093 4,367

Total assets $7,104,033 $7,198,952 $7,324,723 $7,321,700 $6,715,570





LIABILITIES AND EQUITY

Liabilities

Notes payable

Unsecured $3,167,557 $3,166,625 $3,225,799 $3,224,871 $2,606,876

Accounts payableand accrued 159,111 175,608 183,654 167,453 156,841 expenses

Accrued real 33,155 66,156 87,159 62,499 32,365 estate taxes

Distributions 84,282 84,147 84,137 84,138 84,112 payable

Other liabilities^ 185,852 189,829 177,967 172,172 164,052 (b)

Total liabilities 3,629,957 3,682,365 3,758,716 3,711,133 3,044,246



Equity

Common shares ofbeneficial 1,070 1,069 1,068 1,068 1,069 interest

Additional paid-in 4,588,056 4,581,710 4,577,813 4,574,387 4,569,995 capital

Distributions inexcess of netincome (842,628 ) (791,079 ) (737,556 ) (689,809 ) (623,570 ) attributable tocommonshareholders

Treasury shares (335,511 ) (341,412 ) (341,831 ) (341,637 ) (342,778 )

Accumulated othercomprehensive (5,010 ) (5,383 ) (5,431 ) (5,797 ) (6,163 ) income (loss) ^(c)

Total common 3,405,977 3,444,905 3,494,063 3,538,212 3,598,553 equity

Non-controlling 68,099 71,682 71,944 72,355 72,771 interests

Total equity 3,474,076 3,516,587 3,566,007 3,610,567 3,671,324

Total liabilities $7,104,033 $7,198,952 $7,324,723 $7,321,700 $6,715,570 and equity





(a) Includes netdeferred charges $2,031 $2,299 $2,686 $3,031 $3,399 of:



(b) Includesdeferred revenues $256 $284 $314 $344 $375 of:



(c) Represents the unrealized net loss and unamortized prior service costs onpost retirement obligations, and unrealized net gain (loss) on cash flowhedging 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. A reconciliation of net income attributable to common shareholders to FFO is provided below:

Adjusted FFO

In addition to FFO, we compute Adjusted FFO ("AFFO") as a supplemental measure of operating performance. AFFO is calculated utilizing FFO less recurring capital expenditures which are necessary to help preserve the value of and maintain the functionality at our communities. Our definition of recurring capital expenditures may differ from other REITs, and there can be no assurance our basis for computing this measure is comparable to other REITs. A reconciliation of FFO to AFFO is provided below:



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. A reconciliation of net income attributable to common shareholders to FFO is provided below:

Adjusted FFO

In addition to FFO, we compute Adjusted FFO ("AFFO") as a supplemental measure of operating performance. AFFO is calculated utilizing FFO less recurring capital expenditures which are necessary to help preserve the value of and maintain the functionality at our communities. Our definition of recurring capital expenditures may differ from other REITs, and there can be no assurance our basis for computing this measure is comparable to other REITs. A reconciliation of FFO to AFFO is provided below:

Three Months Ended March 31,

2021 2020

Net income attributable to common shareholders $31,347 $43,284

Real estate depreciation and amortization 90,707 89,511

Adjustments for unconsolidated joint ventures 2,599 2,242

Income allocated to non-controlling interests 1,126 1,282

Funds from operations $125,779 $136,319



Less: recurring capitalized expenditures (12,680 ) (14,825 )



Adjusted funds from operations $113,099 $121,494



Weighted average number of common shares outstanding:

EPS diluted 99,621 99,380

FFO/AFFO diluted 101,341 101,128



Three Months Ended March 31,

2021 2020

Total Earnings Per Common Share - Diluted $0.31 $0.43

Real estate depreciation and amortization 0.89 0.89

Adjustments for unconsolidated joint ventures 0.03 0.02

Income allocated to non-controlling interests 0.01 0.01

FFO per common share - Diluted $1.24 $1.35



Less: recurring capitalized expenditures (0.12 ) (0.15 )



AFFO per common share - Diluted $1.12 $1.20

CAMDEN

NON-GAAP FINANCIAL MEASURES

DEFINITIONS & RECONCILIATIONS

(In thousands, except per share amounts)

(Unaudited)

Expected FFO

Expected FFO is calculated in a method consistent with historical FFO, and is considered an appropriate supplemental measure of expected operating performance when compared to expected earnings per common share (EPS). Guidance excludes gains, if any, on properties not currently held for sale due to the uncertain timing and extent of property dispositions and the resulting gains/losses on sales. A reconciliation of the ranges provided for diluted EPS to expected FFO per diluted share is provided below:



CAMDEN NON-GAAP FINANCIAL MEASURES

DEFINITIONS & RECONCILIATIONS

(In thousands, except per share amounts)



(Unaudited)

Expected FFO

Expected FFO is calculated in a method consistent with historical FFO, and is considered an appropriate supplemental measure of expected operating performance when compared to expected earnings per common share (EPS). Guidance excludes gains, if any, on properties not currently held for sale due to the uncertain timing and extent of property dispositions and the resulting gains/losses on sales. A reconciliation of the ranges provided for diluted EPS to expected FFO per diluted share is provided below:

2Q21 Range 2021 Range

Low High Low High

Expected earnings per common share - diluted $0.25 $0.31 $0.84 $1.14

Expected real estate depreciation and 0.93 0.93 3.95 3.95 amortization

Expected adjustments for unconsolidated joint 0.03 0.03 0.10 0.10 ventures

Expected income allocated to non-controlling 0.01 0.01 0.05 0.05 interests

Expected FFO per share - diluted $1.22 $1.28 $4.94 $5.24





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

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 12 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. A reconciliation of net income attributable to common shareholders to net operating income is provided below:

Three months ended March 31,

2021 2020

Net income $32,473 $44,467

Less: Fee and asset management income (2,206 ) (2,527 )

Less: Interest and other income (332 ) (329 )

Less: (Income)/loss on deferred compensation plans (3,626 ) 14,860

Plus: Property management expense 6,124 6,527

Plus: Fee and asset management expense 1,132 843

Plus: General and administrative expense 14,222 13,233

Plus: Interest expense 23,644 19,707

Plus: Depreciation and amortization expense 93,141 91,859

Plus: Expense/(benefit) on deferred compensation 3,626 (14,860 ) plans

Less: Gain on sale of land - (382 )

Less: Equity in income of joint ventures (1,914 ) (2,122 )

Plus: Income tax expense 352 467

NOI $166,636 $171,743



"Same Property" Communities $150,483 $155,954

Non-"Same Property" Communities 14,155 14,427

Development and Lease-Up Communities 1,440 (75 )

Dispositions/Other 558 1,437

NOI $166,636 $171,743

CAMDEN

NON-GAAP FINANCIAL MEASURES

DEFINITIONS & RECONCILIATIONS

(In thousands, except per share amounts)

(Unaudited)

Adjusted EBITDA

Adjusted EBITDA is defined by the Company as earnings before interest, taxes, depreciation and amortization, including net operating income from discontinued operations, excluding equity in (income) loss of joint ventures, (gain) loss on sale of unconsolidated joint venture interests, gain on acquisition of controlling interest in joint ventures, gain on sale of operating properties including land, loss on early retirement of debt and income (loss) allocated to non-controlling interests. The Company considers Adjusted EBITDA to be an appropriate supplemental measure of operating performance to net income attributable to common shareholders because it represents income before non-cash depreciation and the cost of debt, and excludes gains or losses from property dispositions. Annualized Adjusted EBITDA is Adjusted EBITDA as reported for the period multiplied by 4 for quarter results. A reconciliation of net income attributable to common shareholders to Adjusted EBITDA is provided below:



CAMDEN NON-GAAP FINANCIAL MEASURES

DEFINITIONS & RECONCILIATIONS

(In thousands, except per share amounts)

(Unaudited)

Adjusted EBITDA

Adjusted EBITDA is defined by the Company as earnings before interest, taxes, depreciation and amortization, including net operating income from discontinued operations, excluding equity in (income) loss of joint ventures, (gain) loss on sale of unconsolidated joint venture interests, gain on acquisition of controlling interest in joint ventures, gain on sale of operating properties including land, loss on early retirement of debt and income (loss) allocated to non-controlling interests. The Company considers Adjusted EBITDA to be an appropriate supplemental measure of operating performance to net income attributable to common shareholders because it represents income before non-cash depreciation and the cost of debt, and excludes gains or losses from property dispositions. Annualized Adjusted EBITDA is Adjusted EBITDA as reported for the period multiplied by 4 for quarter results. A reconciliation of net income attributable to common shareholders to Adjusted EBITDA is provided below:

Three months ended March 31,

2021 2020

Net income attributable to common shareholders $31,347 $43,284

Plus: Interest expense 23,644 19,707

Plus: Depreciation and amortization expense 93,141 91,859

Plus: Income allocated to non-controlling interests 1,126 1,183

Plus: Income tax expense 352 467

Less: Gain on sale of land - (382 )

Less: Equity in income of joint ventures (1,914 ) (2,122 )

Adjusted EBITDA $147,696 $153,996

Annualized Adjusted EBITDA $590,784 $615,984

Net Debt to Annualized Adjusted EBITDA

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

Net Debt:

Average monthly balance for the

Three months ended March 31,

2021 2020

Unsecured notes payable $3,167,246 $2,633,950

Total debt 3,167,246 2,633,950

Less: Cash and cash equivalents (289,901 ) (20,184 )

Net debt $2,877,345 $2,613,766

Net Debt to Annualized Adjusted EBITDA:

Three months ended March 31,

2021 2020

Net debt $2,877,345 $2,613,766

Annualized Adjusted EBITDA 590,784 615,984

Net Debt to Annualized Adjusted EBITDA 4.9 x 4.2 x

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CONTACT: Kim Callahan, 713-354-2549