Business Wire | Oct 29, 2020 04:16PM EDT

Camden Property Trust Announces Third Quarter 2020 Operating Results

Oct. 29, 2020

HOUSTON--(BUSINESS WIRE)--Oct. 29, 2020--Camden Property Trust (NYSE:CPT) (the "Company") announced today operating results for the three and nine months ended September 30, 2020. Net Income Attributable to Common Shareholders ("EPS"), Funds from Operations ("FFO"), and Adjusted Funds from Operations ("AFFO") for the three and nine months ended September 30, 2020 are detailed below. A reconciliation of EPS to FFO is included in the financial tables accompanying this press release.

Three Months Ended Nine Months Ended

September 30 September 30

Per Diluted Share 2020 2019 2020 2019

EPS $0.35 $0.44 $0.95 $1.26

FFO $1.25 $1.29 $3.69 $3.79

AFFO $1.03 $1.09 $3.14 $3.28

The Company incurred approximately $0.4 million and $14.8 million of COVID-19 Related Impact for the three and nine months ended September 30, 2020, respectively.

Quarterly Sequential Year-To-Date Growth Growth Growth

Same Property Results* 3Q20 vs. 3Q19 3Q20 vs. 2Q20 2020 vs. 2019

Revenues 0.8% 2.2% 1.5%

Expenses 4.7% 4.9% 2.4%

Net Operating Income (1.3)% 0.6% 1.0%("NOI")

*Same property results exclude any COVID-19 Related Impact.

Same Property Results 3Q20 3Q19 2Q20

Occupancy 95.6% 96.3% 95.2%

For 2020, the Company defines same property communities as communities owned and stabilized since January 1, 2019, 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.

October Collections

Same Property Scheduled Rents* October 2020 October 2019 3Q20 3Q19

Collected 98.1% 98.2% 99.4% 98.3%

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

Delinquent 1.9% 1.8% 0.6% 1.7%

*Rent is recognized as earned. The Company evaluates collectability on an ongoing basis and any accounts considered uncollectable are recorded against property revenues.

Retail revenues are not included above and comprise approximately 0.6% of total property revenues. The Company collected 58% and 54% of its retail billings for the third quarter of 2020 and October 29, 2020, respectively.

Operating Statistics - Same Property Portfolio

New Lease and Renewal Data - Date Signed October October 3Q20^ 3Q19^^(1) (2) 2020* 2019 (2) (2)

New Lease Rates (3.1)% (0.4)% (3.0)% 2.5%

Renewal Rates 3.0% 5.0% 1.7% 5.1%

Blended Rates (0.8)% 1.8% (0.9)% 3.7%



New Leases 1,248 1,415 1,760 1,686

Renewals 838 995 1,467 1,418

Total Leases 2,086 2,410 3,227 3,104

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

October 2020*

October 2019

3Q20(4)

3Q19(4)

New Lease Rates

(3.5)%

0.4%

(2.4)%

3.4%

Renewal Rates

2.1%

4.7%

0.6%

5.4%

Blended Rates

(1.0)%

2.5%

(0.9)%

4.4%

New Leases

1,698

1,487

1,943

2,003

Renewals

1,338

1,379

2,087

2,106

Total Leases

3,036

2,866

4,030

4,109

*Data as of October 27, 2020 (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 October October 3Q20^ 3Q19^Effective^ (3) (4) 2020* 2019 (4) (4)

New Lease Rates (3.5)% 0.4% (2.4)% 3.4%

Renewal Rates 2.1% 4.7% 0.6% 5.4%

Blended Rates (1.0)% 2.5% (0.9)% 4.4%



New Leases 1,698 1,487 1,943 2,003

Renewals 1,338 1,379 2,087 2,106

Total Leases 3,036 2,866 4,030 4,109

*Data as of October 27, 2020 (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.

Occupancy and Turnover Data October 2020* October 2019 3Q20 3Q19

Occupancy 95.4% 96.1% 95.6% 96.3%

Annualized Gross Turnover 50% 48% 60% 62%

Annualized Net Turnover 39% 39% 49% 52%

*Data as of October 27, 2020

Development Activity

During the quarter, construction was completed at Camden Downtown I in Houston, TX, lease-up was completed at Camden North End I in Phoenix, AZ and leasing began at Camden RiNo in Denver, CO. The Company also commenced construction at three communities: Camden Atlantic in Plantation, FL, Camden Tempe II in Tempe, AZ and Camden NoDa in Charlotte, NC. Subsequent to quarter-end, leasing began at Camden North End II in Phoenix, AZ.

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

Total Total % Leased

Community Name Location Homes Cost as of 10/27/2020

Camden Downtown I Houston, TX 271 $131.2 39%

Development Communities - Construction Ongoing ($ in millions)

Total Total % Leased

Community Name Location Homes Estimated Cost as of 10/27/ 2020

Camden RiNo Denver, CO 233 $79.0 40%

Camden North End II Phoenix, AZ 343 90.0 1%

Camden Lake Eola Orlando, FL 360 125.0

Camden Buckhead Atlanta, GA 366 160.0

Camden Hillcrest San Diego, CA 132 95.0

Camden Atlantic Plantation, FL 269 100.0

Camden Tempe II Tempe, AZ 397 115.0

Camden NoDa Charlotte, NC 387 105.0

Camden Cypress Creek II Cypress, TX 234 38.0 33%(JV)

Total 2,721 $907.0

Liquidity Analysis

As of September 30, 2020, Camden had approximately $1.5 billion of liquidity comprised of approximately $590 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 $384 million left to fund under its existing wholly-owned development pipeline. As of September 30, 2020, Camden had outstanding letters of credit totaling approximately $10 million, which reduced the availability under its unsecured credit facility to $890 million.

In October 2020, the Company entered into a $40 million two-year unsecured floating rate term loan with an unrelated third party and used the net proceeds, together with cash on hand, to repay its $100 million unsecured term loan which was scheduled to mature in 2022.

Earnings Guidance

Camden updated its earnings guidance for 2020 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for fourth quarter 2020 as detailed below.

Per Diluted Share 4Q20 Range 2020 Range

EPS $0.30 - $0.36 $1.25 - $1.31

FFO $1.21 - $1.27 $4.90 - $4.96



Same Property Growth 2020 Range

Revenues 0.75% - 1.25%

Expenses 3.20% - 3.60%

NOI (0.75)% - 0.15%

Conference CallFriday, October 30, 2020 at 10:00 AM CT Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061 Passcode: 6005789 Webcast: https://services.choruscall.com/links/cpt201030.html

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 165 properties containing 56,383 apartment homes across the United States. Upon completion of 9 properties currently under development, the Company's portfolio will increase to 59,104 apartment homes in 174 properties. Camden has been recognized as one of the 100 Best Companies to Work For(r) by FORTUNE magazine for 13 consecutive years, most recently ranking #18. 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 Nine Months Ended September 30, September 30,

2020 2019 2020 2019

OPERATING DATA



Property revenues ^(a) $ 265,721 $ 260,672 $ 782,283 $ 765,000



Property expenses

Property operating and 65,191 62,277 189,788 177,372 maintenance

Real estate taxes 35,861 31,596 105,081 98,566

Total property expenses 101,052 93,873 294,869 275,938



Non-property income

Fee and asset management 2,542 2,139 7,449 5,849

Interest and other income 1,948 1,485 2,602 2,114

Income on deferred 5,071 780 1,646 14,992 compensation plans

Total non-property income 9,561 4,404 11,697 22,955



Other expenses

Property management 5,894 6,154 18,360 18,904

Fee and asset management 1,018 1,316 2,681 4,022

General and administrative 12,726 13,458 40,350 40,027

Interest 24,265 20,719 67,454 60,538

Depreciation and amortization 90,575 85,814 275,237 250,734

Expense on deferred 5,071 780 1,646 14,992 compensation plans

Total other expenses 139,549 128,241 405,728 389,217



Gain on sale of land - - 382 -

Equity in income of joint 2,154 2,133 5,909 5,954 ventures

Income from continuingoperations before income 36,835 45,095 99,674 128,754 taxes

Income tax expense (615 ) (313 ) (1,476 ) (709 )

Net income 36,220 44,782 98,198 128,045

Less income allocated to (1,263 ) (1,185 ) (3,480 ) (3,436 )non-controlling interests

Net income attributable to $ 34,957 $ 43,597 $ 94,718 $ 124,609 common shareholders ^(b)



CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Net income $ 36,220 $ 44,782 $ 98,198 $ 128,045

Other comprehensive income

Unrealized (loss) on cash - - - (12,998 )flow hedging activities

Reclassification of net loss(gain) on cash flow hedgingactivities, prior service 366 357 1,098 (369 )cost and net loss on postretirement obligation

Comprehensive income 36,586 45,139 99,296 114,678

Less income allocated to (1,263 ) (1,185 ) (3,480 ) (3,436 )non-controlling interests

Comprehensive incomeattributable to common $ 35,323 $ 43,954 $ 95,816 $ 111,242 shareholders



PER SHARE DATA



Total earnings per common $ 0.35 $ 0.44 $ 0.95 $ 1.27 share - basic

Total earnings per common 0.35 0.44 0.95 1.26 share - diluted



Weighted average number of common shares outstanding:

Basic 99,419 98,959 99,372 98,259

Diluted 99,455 99,066 99,414 98,375

(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, 2020, we recognized $265.7 million of property revenue which consisted of approximately $234.3 million of rental revenue and approximately $31.4 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 $260.7 million recognized for the three months ended September 30, 2019, made up of approximately $230.7 million of rental revenue and approximately $30.0 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, 2020, we recognized $782.3 million of property revenue which consisted of approximately $692.2 million of rental revenue and approximately $90.1 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 $765.0 million recognized for the nine months ended September 30, 2019, made up of approximately $677.0 million of rental revenue and approximately $88.0 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 $7.4 million and $6.6 million for the three months ended September 30, 2020 and 2019, respectively. For the nine months ended September 30, 2020 we recognized $21.4 million of revenue related to utility rebilling to residents. This compares to revenue related to utility rebilling to residents of $19.5 million for the nine months ended September 30, 2019.

(b)

Net income attributable to common shareholders includes an approximate $0.4 million and $14.8 million COVID-19 Related Impact for the three and nine months ended September 30, 2020, respectively. Please refer to page 28 of the supplement, footnote (a), for additional detail on the breakdown of the COVID-19 Related Impact.

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 September 30, 2020, we recognized $265.7 million of property revenue which consisted of approximately $234.3 million of rental revenue and approximately $31.4 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 $260.7 million recognized for the three months ended September 30, 2019, made up of approximately $230.7 million of rental revenue and approximately $30.0 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, 2020, we recognized $782.3 million of property revenue which consisted of(a) approximately $692.2 million of rental revenue and approximately $90.1 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 $765.0 million recognized for the nine months ended September 30, 2019, made up of approximately $677.0 million of rental revenue and approximately $88.0 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 $7.4 million and $6.6 million for the three months ended September 30, 2020 and 2019, respectively. For the nine months ended September 30, 2020 we recognized $21.4 million of revenue related to utility rebilling to residents. This compares to revenue related to utility rebilling to residents of $19.5 million for the nine months ended September 30, 2019.



Net income attributable to common shareholders includes an approximate $0.4 million and $14.8 million COVID-19 Related Impact for the three and nine(b) months ended September 30, 2020, respectively. Please refer to page 28 of the supplement, footnote (a), for additional detail on the breakdown of the COVID-19 Related Impact.

Note: Please refer to the following pages for definitions and reconciliationsof all non-GAAP financial measures presented in this document.CAMDENFUNDS FROM OPERATIONS

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

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2020

2019

2020

2019

FUNDS FROM OPERATIONS

Net income attributable to common shareholders (a)

$

34,957

$

43,597

$

94,718

$

124,609

Real estate depreciation and amortization

87,974

83,437

267,985

244,908

Adjustments for unconsolidated joint ventures

2,404

2,245

6,933

6,736

Income allocated to non-controlling interests

1,276

1,225

3,661

3,549

Funds from operations

$

126,611

$

130,504

$

373,297

$

379,802

Less: recurring capitalized expenditures (b)

(22,299

)

(20,242

)

(55,906

)

(51,063

)

Adjusted funds from operations

$

104,312

$

110,262

$

317,391

$

328,739

PER SHARE DATA

Funds from operations - diluted

$

1.25

$

1.29

$

3.69

$

3.79

Adjusted funds from operations - diluted

1.03

1.09

3.14

3.28

Distributions declared per common share

0.83

0.80

2.49

2.40

Weighted average number of common shares outstanding:

FFO/AFFO - diluted

101,203

100,819

101,162

100,129

PROPERTY DATA

Total operating properties (end of period) (c)

165

165

165

165

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

56,383

56,271

56,383

56,271

Total operating apartment homes (weighted average)

49,158

48,801

49,081

48,441

CAMDEN FUNDS FROM OPERATIONS

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

(Unaudited)

Three Months Ended Nine Months Ended September 30, September 30,

2020 2019 2020 2019

FUNDS FROM OPERATIONS



Net income attributable to $ 34,957 $ 43,597 $ 94,718 $ 124,609 common shareholders ^(a)

Real estate depreciation and 87,974 83,437 267,985 244,908 amortization

Adjustments for 2,404 2,245 6,933 6,736 unconsolidated joint ventures

Income allocated to 1,276 1,225 3,661 3,549 non-controlling interests

Funds from operations $ 126,611 $ 130,504 $ 373,297 $ 379,802



Less: recurring capitalized (22,299 ) (20,242 ) (55,906 ) (51,063 )expenditures^ (b)



Adjusted funds from $ 104,312 $ 110,262 $ 317,391 $ 328,739 operations



PER SHARE DATA

Funds from operations - $ 1.25 $ 1.29 $ 3.69 $ 3.79 diluted

Adjusted funds from 1.03 1.09 3.14 3.28 operations - diluted

Distributions declared per 0.83 0.80 2.49 2.40 common share



Weighted average number of common shares outstanding:

FFO/AFFO - diluted 101,203 100,819 101,162 100,129



PROPERTY DATA

Total operating properties 165 165 165 165 (end of period) ^(c)

Total operating apartmenthomes in operating properties 56,383 56,271 56,383 56,271 (end of period) ^(c)

Total operating apartment 49,158 48,801 49,081 48,441 homes (weighted average)

(a)

Net income attributable to common shareholders includes the approximate $0.4 million and $14.8 million COVID-19 Related Impact for the three and nine months ended September 30, 2020, respectively. Please refer to page 28 of the supplement, footnote (a), for additional detail on the breakdown of the COVID-19 Related Impact.

(b)

Capital expenditures necessary to help preserve the value of and maintain the functionality at our communities.

(c)

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. Net income attributable to common shareholders includes the approximate $0.4 million and $14.8 million COVID-19 Related Impact for the three and(a) nine months ended September 30, 2020, respectively. Please refer to page 28 of the supplement, footnote (a), for additional detail on the breakdown of the COVID-19 Related Impact.

(b) Capital expenditures necessary to help preserve the value of and maintain the functionality at our communities.



(c) 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.CAMDENBALANCE SHEETS

(In thousands)

(Unaudited)

Sep 30,2020

Jun 30,2020

Mar 31,2020

Dec 31,2019

Sep 30,2019

ASSETS

Real estate assets, at cost

Land

$

1,216,942

$

1,206,656

$

1,206,130

$

1,199,384

$

1,158,342

Buildings and improvements

7,677,676

7,597,165

7,547,150

7,404,090

7,242,256

8,894,618

8,803,821

8,753,280

8,603,474

8,400,598

Accumulated depreciation

(2,944,769

)

(2,857,124

)

(2,770,848

)

(2,686,025

)

(2,638,693

)

Net operating real estate assets

5,949,849

5,946,697

5,982,432

5,917,449

5,761,905

Properties under development, including land

522,664

514,336

467,288

512,319

440,917

Investments in joint ventures

20,992

21,735

22,318

20,688

21,715

Total real estate assets

6,493,505

6,482,768

6,472,038

6,450,456

6,224,537

Accounts receivable - affiliates

20,152

21,432

20,344

21,833

23,170

Other assets, net (a)

217,534

211,823

196,544

248,716

238,014

Cash and cash equivalents

589,614

601,584

22,277

23,184

157,239

Restricted cash

3,918

4,093

4,367

4,315

5,686

Total assets

$

7,324,723

$

7,321,700

$

6,715,570

$

6,748,504

$

6,648,646

LIABILITIES AND EQUITY

Liabilities

Notes payable

Unsecured

$

3,225,799

$

3,224,871

$

2,606,876

$

2,524,099

$

2,432,137

Secured

-

-

-

-

45,250

Accounts payable and accrued expenses

183,654

167,453

156,841

171,719

170,689

Accrued real estate taxes

87,159

62,499

32,365

54,408

74,658

Distributions payable

84,137

84,138

84,112

80,973

80,764

Other liabilities (b)

177,967

172,172

164,052

215,581

187,367

Total liabilities

3,758,716

3,711,133

3,044,246

3,046,780

2,990,865

Equity

Common shares of beneficial interest

1,068

1,068

1,069

1,069

1,065

Additional paid-in capital

4,577,813

4,574,387

4,569,995

4,566,731

4,538,422

Distributions in excess of net income attributable to common shareholders

(737,556

)

(689,809

)

(623,570

)

(584,167

)

(599,615

)

Treasury shares, at cost

(341,831

)

(341,637

)

(342,778

)

(348,419

)

(348,556

)

Accumulated other comprehensive income (loss) (c)

(5,431

)

(5,797

)

(6,163

)

(6,529

)

(6,438

)

Total common equity

3,494,063

3,538,212

3,598,553

3,628,685

3,584,878

Non-controlling interests

71,944

72,355

72,771

73,039

72,903

Total equity

3,566,007

3,610,567

3,671,324

3,701,724

3,657,781

Total liabilities and equity

$

7,324,723

$

7,321,700

$

6,715,570

$

6,748,504

$

6,648,646

(a) Includes net deferred charges of:

$

2,686

$

3,031

$

3,399

$

3,658

$

4,358

(b) Includes deferred revenues of:

$

314

$

344

$

375

$

408

$

497

(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)

Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, 2020 2020 2020 2019 2019

ASSETS

Real estate assets, at cost

Land $ 1,216,942 $ 1,206,656 $ 1,206,130 $ 1,199,384 $ 1,158,342

Buildings and 7,677,676 7,597,165 7,547,150 7,404,090 7,242,256 improvements

8,894,618 8,803,821 8,753,280 8,603,474 8,400,598

Accumulated (2,944,769 ) (2,857,124 ) (2,770,848 ) (2,686,025 ) (2,638,693 ) depreciation

Net operatingreal estate 5,949,849 5,946,697 5,982,432 5,917,449 5,761,905 assets

Propertiesunder 522,664 514,336 467,288 512,319 440,917 development,including land

Investments in 20,992 21,735 22,318 20,688 21,715 joint ventures

Total real 6,493,505 6,482,768 6,472,038 6,450,456 6,224,537 estate assets

Accountsreceivable - 20,152 21,432 20,344 21,833 23,170 affiliates

Other assets, 217,534 211,823 196,544 248,716 238,014 net ^(a)

Cash and cash 589,614 601,584 22,277 23,184 157,239 equivalents

Restricted cash 3,918 4,093 4,367 4,315 5,686

Total assets $ 7,324,723 $ 7,321,700 $ 6,715,570 $ 6,748,504 $ 6,648,646







LIABILITIES AND EQUITY

Liabilities

Notes payable

Unsecured $ 3,225,799 $ 3,224,871 $ 2,606,876 $ 2,524,099 $ 2,432,137

Secured - - - - 45,250

Accountspayable and 183,654 167,453 156,841 171,719 170,689 accruedexpenses

Accrued real 87,159 62,499 32,365 54,408 74,658 estate taxes

Distributions 84,137 84,138 84,112 80,973 80,764 payable

Otherliabilities^ 177,967 172,172 164,052 215,581 187,367 (b)

Total 3,758,716 3,711,133 3,044,246 3,046,780 2,990,865 liabilities



Equity

Common sharesof beneficial 1,068 1,068 1,069 1,069 1,065 interest

Additional 4,577,813 4,574,387 4,569,995 4,566,731 4,538,422 paid-in capital

Distributionsin excess ofnet income (737,556 ) (689,809 ) (623,570 ) (584,167 ) (599,615 ) attributable tocommonshareholders

Treasury (341,831 ) (341,637 ) (342,778 ) (348,419 ) (348,556 ) shares, at cost

Accumulatedothercomprehensive (5,431 ) (5,797 ) (6,163 ) (6,529 ) (6,438 ) income (loss) ^(c)

Total common 3,494,063 3,538,212 3,598,553 3,628,685 3,584,878 equity

Non-controlling 71,944 72,355 72,771 73,039 72,903 interests

Total equity 3,566,007 3,610,567 3,671,324 3,701,724 3,657,781

Totalliabilities and $ 7,324,723 $ 7,321,700 $ 6,715,570 $ 6,748,504 $ 6,648,646 equity





(a) Includesnet deferred $ 2,686 $ 3,031 $ 3,399 $ 3,658 $ 4,358 charges of:



(b) Includesdeferred $ 314 $ 344 $ 375 $ 408 $ 497 revenues 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 Nine Months Ended September 30, September 30,

2020 2019 2020 2019

Net income attributable to $ 34,957 $ 43,597 $ 94,718 $ 124,609 common shareholders ^(a)

Real estate depreciation and 87,974 83,437 267,985 244,908 amortization

Adjustments for unconsolidated 2,404 2,245 6,933 6,736 joint ventures

Income allocated to 1,276 1,225 3,661 3,549 non-controlling interests

Funds from operations $ 126,611 $ 130,504 $ 373,297 $ 379,802



Less: recurring capitalized (22,299 ) (20,242 ) (55,906 ) (51,063 )expenditures



Adjusted funds from operations $ 104,312 $ 110,262 $ 317,391 $ 328,739



Weighted average number of common shares outstanding:

EPS diluted 99,455 99,066 99,414 98,375

FFO/AFFO diluted 101,203 100,819 101,162 100,129



Three Months Ended Nine Months Ended September 30, September 30,

2020 2019 2020 2019

Total Earnings Per Common Share $ 0.35 $ 0.44 $ 0.95 $ 1.26 - Diluted

Real estate depreciation and 0.87 0.83 2.65 2.45 amortization

Adjustments for unconsolidated 0.02 0.01 0.06 0.05 joint ventures

Income allocated to 0.01 0.01 0.03 0.03 non-controlling interests

FFO per common share - Diluted $ 1.25 $ 1.29 $ 3.69 $ 3.79



Less: recurring capitalized (0.22 ) (0.20 ) (0.55 ) (0.51 )expenditures



AFFO per common share - Diluted $ 1.03 $ 1.09 $ 3.14 $ 3.28

(a)

Net income attributable to common shareholders includes an approximate $0.4 million and $14.8 million COVID-19 Related Impact for the three and nine months ended September 30, 2020, respectively. The total COVID-19 Related Impact for the nine months ended September 30, 2020 was comprised of $9.5 million related to the Resident Relief Funds which were established in April 2020. Of this amount, approximately $9.1 million was paid to residents at our wholly-owned communities and approximately $1.3 million of Resident Relief Funds paid to residents of the operating communities owned by our unconsolidated joint ventures, of which, we recognized our ownership interest of $0.4 million in equity in income of joint ventures. Additionally, we incurred approximately $4.5 million of COVID-19 expenses at our operating communities, which included $2.8 million of bonuses paid to on-site employees who provided essential services during the pandemic and $1.7 million in other directly-related COVID-19 expenses for the nine months ended September 30, 2020. We also incurred approximately $0.8 million related to the Employee Relief Fund we established to help our employees impacted by COVID-19 for the nine months ended September 30, 2020.

Net income attributable to common shareholders includes an approximate $0.4 million and $14.8 million COVID-19 Related Impact for the three and nine months ended September 30, 2020, respectively. The total COVID-19 Related Impact for the nine months ended September 30, 2020 was comprised of $9.5 million related to the Resident Relief Funds which were established in April 2020. Of this amount, approximately $9.1 million was paid to residents at our wholly-owned communities and approximately $1.3 million of Resident Relief Funds paid to residents of the operating communities owned(a) by our unconsolidated joint ventures, of which, we recognized our ownership interest of $0.4 million in equity in income of joint ventures. Additionally, we incurred approximately $4.5 million of COVID-19 expenses at our operating communities, which included $2.8 million of bonuses paid to on-site employees who provided essential services during the pandemic and $1.7 million in other directly-related COVID-19 expenses for the nine months ended September 30, 2020. We also incurred approximately $0.8 million related to the Employee Relief Fund we established to help our employees impacted by COVID-19 for the nine months ended September 30, 2020.

CAMDEN

NON-GAAP FINANCIAL MEASURES

DEFINITIONS & RECONCILIATIONS

(In thousands, except per share amounts)

(Unaudited)



CAMDEN NON-GAAP FINANCIAL MEASURES

DEFINITIONS & RECONCILIATIONS

(In thousands, except per share amounts)

(Unaudited)

4Q20Range

2020Range

Low

High

Low

High

Expected earnings per common share - diluted

$

0.30

$

0.36

$

1.25

$

1.31

Expected real estate depreciation and amortization

0.88

0.88

3.53

3.53

Expected adjustments for unconsolidated joint ventures

0.02

0.02

0.08

0.08

Expected income allocated to non-controlling interests

0.01

0.01

0.04

0.04

Expected FFO per share - diluted

$

1.21

$

1.27

$

4.90

$

4.96

Note: This table contains forward-looking statements. Please see paragraph regarding 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:

4Q20 Range 2020 Range

Low High Low High

Expected earnings per common share - $ 0.30 $ 0.36 $ 1.25 $ 1.31 diluted

Expected real estate depreciation and 0.88 0.88 3.53 3.53 amortization

Expected adjustments for unconsolidated 0.02 0.02 0.08 0.08 joint ventures

Expected income allocated to 0.01 0.01 0.04 0.04 non-controlling interests

Expected FFO per share - diluted $ 1.21 $ 1.27 $ 4.90 $ 4.96



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 Nine months ended September September 30, 30,

2020 2019 2020 2019

Net income ^(a) $ 36,220 $ 44,782 $ 98,198 $ 128,045

Less: Fee and asset (2,542 ) (2,139 ) (7,449 ) (5,849 ) management income

Less: Interest and (1,948 ) (1,485 ) (2,602 ) (2,114 ) other income

Less: (Income)/Losson deferred (5,071 ) (780 ) (1,646 ) (14,992 ) compensation plans

Plus: Property 5,894 6,154 18,360 18,904 management expense

Plus: Fee and asset 1,018 1,316 2,681 4,022 management expense

Plus: General andadministrative 12,726 13,458 40,350 40,027 expense

Plus: Interest 24,265 20,719 67,454 60,538 expense

Plus: Depreciationand amortization 90,575 85,814 275,237 250,734 expense

Plus: Expense ondeferred compensation 5,071 780 1,646 14,992 plans

Less: Gain on sale of - - (382 ) - land

Less: Equity inincome of joint (2,154 ) (2,133 ) (5,909 ) (5,954 ) ventures

Plus: Income tax 615 313 1,476 709 expense

NOI ^(b) (c) $ 164,669 $ 166,799 $ 487,414 $ 489,062



"Same Property" $ 144,737 $ 146,686 $ 437,678 $ 433,237 Communities

Non-"Same Property" 20,072 17,413 61,279 47,588 Communities

Development and (354 ) (11 ) (739 ) (13 ) Lease-Up Communities

COVID-19 Related (444 ) - (13,614 ) - Impact ^(b) (c)

Dispositions/Other 658 2,711 2,810 8,250

NOI ^(b) (c) $ 164,669 $ 166,799 $ 487,414 $ 489,062

(a)

Net income attributable to common shareholders includes the approximate $0.4 million and $14.8 million COVID-19 Related Impact for the three and nine months ended September 30, 2020, respectively. Please refer to page 28 of the supplement, footnote (a), for additional detail on the breakdown of the COVID-19 Related Impact.

(b)

Two Resident Relief Funds were established for residents experiencing financial losses caused by the COVID-19 pandemic, and paid out approximately $9.1 million to approximately 7,100 Camden residents of our wholly-owned communities. All charges related to these funds were recognized in 2Q20 as a reduction of revenue.

(c)

We incurred approximately $0.4 million of COVID-19 expenses at our operating communities for the three months ended September 30, 2020 and $4.5 million for the nine months ending September 30, 2020, which included $2.8 million of bonuses paid to on-site employees who provided essential services during the pandemic and $1.7 million in other directly-related COVID-19 expenses.

Net income attributable to common shareholders includes the approximate $0.4 million and $14.8 million COVID-19 Related Impact for the three and(a) nine months ended September 30, 2020, respectively. Please refer to page 28 of the supplement, footnote (a), for additional detail on the breakdown of the COVID-19 Related Impact.



Two Resident Relief Funds were established for residents experiencing financial losses caused by the COVID-19 pandemic, and paid out(b) approximately $9.1 million to approximately 7,100 Camden residents of our wholly-owned communities. All charges related to these funds were recognized in 2Q20 as a reduction of revenue.



We incurred approximately $0.4 million of COVID-19 expenses at our operating communities for the three months ended September 30, 2020 and(c) $4.5 million for the nine months ending September 30, 2020, which included $2.8 million of bonuses paid to on-site employees who provided essential services during the pandemic and $1.7 million in other directly-related COVID-19 expenses.

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, income (loss) allocated to non-controlling interests, as well as direct COVID-19 Related Impact. 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 or 1.33 for 9 month 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, income (loss) allocated to non-controlling interests, as well as direct COVID-19 Related Impact. 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 or 1.33 for 9 month results. A reconciliation of net income attributable to common shareholders to Adjusted EBITDA is provided below:

Three months ended Nine months ended September 30, September 30,

2020 2019 2020 2019

Net income attributable to $ 34,957 $ 43,597 $ 94,718 $ 124,609 common shareholders ^(a)

Plus: Interest expense 24,265 20,719 67,454 60,538

Plus: Depreciation and 90,575 85,814 275,237 250,734 amortization expense

Plus: Income allocated to 1,263 1,185 3,480 3,436 non-controlling interests

Plus: Income tax expense 615 313 1,476 709

Plus: COVID-19 Related Impact ^ 444 - 14,364 - (b)

Less: Gain on sale of land - - (382 ) -

Less: Equity in income of joint (2,154 ) (2,133 ) (5,909 ) (5,954 )ventures

Adjusted EBITDA $ 149,965 $ 149,495 $ 450,438 $ 434,072

Annualized Adjusted EBITDA $ 599,860 $ 597,980 $ 600,584 $ 578,763

(a)

Net income attributable to common shareholders includes the approximate $0.4 million and $14.8 million COVID-19 Related Impact for the three and nine months ended September 30, 2020, respectively. Please refer to page 28 of the supplement, footnote (a), for additional detail on the breakdown of the COVID-19 Related Impact.

(b)

Approximately $0.4 million and $14.4 million of the stated COVID-19 Related Impact, which consists of the Resident Relief Funds, Employee Relief Fund, direct COVID-19 expenses, and bonus paid to on-site employees, has been added back to the Adjusted EBITDA calculation for the three and nine months ended September 30, 2020, respectively.

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:

Net income attributable to common shareholders includes the approximate $0.4 million and $14.8 million COVID-19 Related Impact for the three and(a) nine months ended September 30, 2020, respectively. Please refer to page 28 of the supplement, footnote (a), for additional detail on the breakdown of the COVID-19 Related Impact.



Approximately $0.4 million and $14.4 million of the stated COVID-19 Related Impact, which consists of the Resident Relief Funds, Employee Relief Fund,(b) direct COVID-19 expenses, and bonus paid to on-site employees, has been added back to the Adjusted EBITDA calculation for the three and nine months ended September 30, 2020, respectively.

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 Average monthly balance for

the three months ended the nine months ended September 30, September 30,

2020 2019 2020 2019

Unsecurednotes $ 3,225,490 $ 2,431,858 $ 3,028,011 $ 2,278,843 payable

Securednotes - 45,322 - 120,933 payable

Total debt 3,225,490 2,477,180 3,028,011 2,399,776

Less: Cashand cash (536,520 ) (124,936 ) (367,113 ) (117,855 ) equivalents

Net debt $ 2,688,970 $ 2,352,244 $ 2,660,898 $ 2,281,921

Net Debt to Annualized Adjusted EBITDA:

Three months ended Nine months ended September September 30, 30,

2020 2019 2020 2019

Net debt $ 2,688,970 $ 2,352,244 $ 2,660,898 $ 2,281,921

AnnualizedAdjusted 599,860 597,980 600,584 578,763 EBITDA

Net Debt toAnnualized 4.5 x 3.9 x 4.4 x 3.9 xAdjustedEBITDA

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CONTACT: Kim Callahan, 713-354-2549