Business Wire | Jul 30, 2020 04:30PM EDT

Camden Property Trust Announces Second Quarter 2020 Operating Results

Jul. 30, 2020

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

Three Months Ended Six Months Ended

June 30 June 30

Per Diluted Share 2020 2019 2020 2019

EPS $0.17 $0.43 $0.60 $0.82

FFO $1.09 $1.28 $2.44 $2.50

AFFO $0.91 $1.07 $2.11 $2.19

EPS, FFO and AFFO include an approximate $0.14 per diluted share impact of non-recurring charges from COVID-19 Related Impact for the three and six months ended June 30, 2020 as detailed below.

COVID-19 Related Impact Per Diluted Income Statement Line Item Share

Resident Relief Funds (Wholly-Owned) $0.090 Property revenues

Resident Relief Funds (JV Allocation $0.004 Equity in income of jointat Pro-rata) ventures

Employee Relief Fund $0.007 General & administrative expense

Frontline Bonus $0.028 Property operating & maintenance expense

2Q COVID-19 Expenses $0.013 Property operating & maintenance expense

Total $0.142

Quarterly Sequential Year-To-Date Growth Growth Growth

Same Property Results* 2Q20 vs. 2Q19 2Q20 vs. 1Q20 2020 vs. 2019

Revenues 0.1% (2.0)% 1.9%

Expenses 2.3% 0.9% 1.2%

Net Operating Income (1.1)% (3.5)% 2.2%("NOI")

*Same property results exclude COVID-19 Related Impact described above.

Same Property Results 2Q20 2Q19 1Q20

Occupancy 95.2% 96.1% 96.1%

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.

July Collections

Same Property Scheduled Rents* July 2020 July 2019 2Q20 2Q19

Collected 98.7% 98.4% 97.7% 98.6%

Deferred/Payment Plan Arranged -% -% 1.1% -%

Delinquent 1.3% 1.6% 1.2% 1.4%

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

Retail revenues are not included above and comprise approximately 0.7% of total property revenues. The Company collected 46% and 48% of its retail billings for the second quarter of 2020 and July 2020, respectively.

Operating Statistics - Same Property Portfolio

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

New Lease Rates (2.0)% 4.0% (2.8)% 4.0%

Renewal Rates 1.1% 5.3% 0.3% 5.7%

Blended Rates (0.6)% 4.6% (1.1)% 4.8%



New Leases 1,733 1,773 1,759 2,054

Renewals 1,716 1,692 2,096 1,962

Total Leases 3,449 3,465 3,855 4,016

New Lease and Renewal Data - Effective^ (3) July July 2Q20^ 2Q19^(4) 2020* 2019 (4) (4)

New Lease Rates (2.0)% 4.4% (2.1)% 3.2%

Renewal Rates 0.2% 5.6% 2.3% 5.4%

Blended Rates (0.9)% 5.0% 0.3% 4.3%



New Leases 2,180 2,080 1,510 1,860

Renewals 2,404 2,400 1,898 1,714

Total Leases 4,584 4,480 3,408 3,574

*Data as of July 29, 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 July 2020* July 2019 2Q20 2Q19

Occupancy 95.3% 96.3% 95.2% 96.1%

Annualized Gross Turnover 57% 66% 54% 57%

Annualized Net Turnover 46% 58% 43% 50%

*Data as of July 29, 2020

Development Activity

Leasing began during the quarter at Camden Cypress Creek II in Cypress, TX, a joint venture project with 234 apartment homes.

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

Total Total % Leased

Community Name Location Homes Cost as of 7/29/2020

Camden North End I Phoenix, AZ 441 $98.8 89 %

Development Communities - Construction Ongoing ($ in millions)

Total Total % Leased

Community Name Location Homes Estimated Cost as of 7/29/ 2020

Camden Downtown I Houston, TX 271 $132.0 24 %

Camden RiNo Denver, CO 233 78.0

Camden Lake Eola Orlando, FL 360 120.0

Camden Buckhead Atlanta, GA 366 160.0

Camden North End II Phoenix, AZ 343 90.0

Camden Hillcrest San Diego, CA 132 95.0

Camden Cypress Creek II (JV) Cypress, TX 234 38.0 6%

Total 1,939 $713.0

Capital Markets Transactions

During the quarter, the Company issued $750.0 million of senior unsecured notes under its existing shelf registration statement. These 10-year notes were offered to the public at 99.929% of par value with a coupon of 2.800%. Camden received net proceeds of approximately $743.1 million, net of underwriting discounts and other estimated offering expenses.

Liquidity Analysis

As of June 30, 2020, the Company had approximately $1.5 billion of liquidity comprised of $602 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 had $184.7 million left to fund under its existing wholly-owned development pipeline at quarter-end.

Earnings Guidance

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

3Q20 Guidance 3Q20 vs. 3Q19 Same Property GrowthPer Diluted Share Revenues (2.2)% - (1.0)%EPS $0.27 - $0.33 Expenses 3.5% - 5.5%FFO $1.14 - $1.20 NOI (6.5)% - (3.5)%

Conference Call

Friday, July 31, 2020 at 10:00 AM CT Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061 Passcode: 4385387 Webcast: https://services.choruscall.com/links/cpt200731.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 164 properties containing 56,112 apartment homes across the United States. Upon completion of 7 properties currently under development, the Company's portfolio will increase to 58,051 apartment homes in 171 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 Six Months Ended June June 30, 30,

2020 2019 2020 2019

OPERATING DATA



Property revenues ^(a) $250,683 $255,761 $516,562 $504,328



Property expenses

Property operating and 64,641 58,147 124,597 115,095 maintenance

Real estate taxes 35,040 33,080 69,220 66,970

Total property expenses 99,681 91,227 193,817 182,065



Non-property income

Fee and asset management 2,380 1,867 4,907 3,710

Interest and other income 325 331 654 629

Income/(Loss) on deferred 11,435 3,856 (3,425 ) 14,212 compensation plans

Total non-property income 14,140 6,054 2,136 18,551



Other expenses

Property management 5,939 6,093 12,466 12,750

Fee and asset management 820 1,522 1,663 2,706

General and administrative 14,391 13,261 27,624 26,569

Interest 23,482 19,349 43,189 39,819

Depreciation and amortization 92,803 84,646 184,662 164,920

Expense/(Benefit) on deferred 11,435 3,856 (3,425 ) 14,212 compensation plans

Total other expenses 148,870 128,727 266,179 260,976



Gain on sale of land - - 382 -

Equity in income of joint 1,633 1,909 3,755 3,821 ventures

Income from continuing 17,905 43,770 62,839 83,659 operations before income taxes

Income tax expense (394 ) (228 ) (861 ) (396 )

Net income 17,511 43,542 61,978 83,263

Less income allocated to (1,034 ) (1,143 ) (2,217 ) (2,251 )non-controlling interests

Net income attributable to $16,477 $42,399 $59,761 $81,012 common shareholders ^(b)



CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Net income $17,511 $43,542 $61,978 $83,263

Other comprehensive income

Unrealized (loss) on cash flow - (7,060 ) - (12,998 )hedging activities

Reclassification of net loss(gain) on cash flow hedgingactivities, prior service cost 366 (351 ) 732 (726 )and net loss on post retirementobligation

Comprehensive income 17,877 36,131 62,710 69,539

Less income allocated to (1,034 ) (1,143 ) (2,217 ) (2,251 )non-controlling interests

Comprehensive incomeattributable to common $16,843 $34,988 $60,493 $67,288 shareholders



PER SHARE DATA



Total earnings per common share $0.17 $0.43 $0.60 $0.83 - basic

Total earnings per common share 0.17 0.43 0.60 0.82 - diluted



Weighted average number of common shares outstanding:

Basic 99,399 98,903 99,348 97,903

Diluted 99,408 98,997 99,394 98,024

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 June 30, 2020, we recognized $250.7 million of property revenue which consisted of approximately $221.4 million of rental revenue, net of $9.1 million related to the Resident Relief Funds, and approximately $29.3 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 $255.8 million recognized for the three months ended June 30, 2019, made up of approximately $226.3 million of rental revenue and approximately $29.5 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. For the six months ended June 30, 2020, we recognized(a) $516.6 million of property revenue which consisted of approximately $458.0 million of rental revenue, net of $9.1 million related to the Resident Relief Funds, and approximately $58.6 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 $504.3 million recognized for the six months ended June 30, 2019, made up of approximately $446.3 million of rental revenue and approximately $58.0 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 $7.1 million and $6.4 million for the three months ended June 30, 2020 and 2019, respectively. For the six months ended June 30, 2020 we recognized $14.0 million of revenue related to utility rebilling to residents. This compares to revenue related to utility rebilling to residents of $12.9 million for the six months ended June 30, 2019.

Net income attributable to common shareholders includes the approximate(b) $14.4 million COVID-19 Related Impact for the three and six months ended June 30, 2020. 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.

CAMDEN FUNDS FROM OPERATIONS

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

(Unaudited)

Three Months Ended June Six Months Ended June 30, 30,

2020 2019 2020 2019

FUNDS FROM OPERATIONS



Net income attributable to common $16,477 $42,399 $59,761 $81,012 shareholders ^(a)

Real estate depreciation and 90,500 82,796 180,011 161,471 amortization

Adjustments for unconsolidated joint 2,287 2,260 4,529 4,491 ventures

Income allocated to non-controlling 1,103 1,180 2,385 2,324 interests

Funds from operations $110,367 $128,635 $246,686 $249,298



Less: recurring capitalized (18,782 ) (21,166 ) (33,607 ) (30,821 )expenditures^ (b)



Adjusted funds from operations $91,585 $107,469 $213,079 $218,477



PER SHARE DATA

Funds from operations - diluted $1.09 $1.28 $2.44 $2.50

Adjusted funds from operations - 0.91 1.07 2.11 2.19 diluted

Distributions declared per common share 0.83 0.80 1.66 1.60



Weighted average number of common shares outstanding:

FFO/AFFO - diluted 101,156 100,750 101,142 99,779



PROPERTY DATA

Total operating properties (end of 164 165 164 165 period) ^(c)

Total operating apartment homes inoperating properties (end of period) ^ 56,112 56,271 56,112 56,271 (c)

Total operating apartment homes 49,069 48,565 49,043 48,261 (weighted average)

Net income attributable to common shareholders includes the approximate(a) $14.4 million COVID-19 Related Impact for the three and six months ended June 30, 2020. 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.

CAMDEN BALANCE SHEETS

(In thousands)

(Unaudited)

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

ASSETS

Real estate assets, at cost

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

Buildings and improvements 7,597,165 7,547,150 7,404,090 7,242,256 7,192,644

8,803,821 8,753,280 8,603,474 8,400,598 8,350,986

Accumulated depreciation (2,857,124 ) (2,770,848 ) (2,686,025 ) (2,638,693 ) (2,558,690 )

Net operating real estate assets 5,946,697 5,982,432 5,917,449 5,761,905 5,792,296

Properties under development, 514,336 467,288 512,319 440,917 397,418 including land

Investments in joint ventures 21,735 22,318 20,688 21,715 21,313

Total real estate assets 6,482,768 6,472,038 6,450,456 6,224,537 6,211,027

Accounts receivable - affiliates 21,432 20,344 21,833 23,170 22,297

Other assets, net ^(a) 211,823 196,544 248,716 238,014 233,335

Cash and cash equivalents 601,584 22,277 23,184 157,239 149,551

Restricted cash 4,093 4,367 4,315 5,686 5,392

Total assets $7,321,700 $6,715,570 $6,748,504 $6,648,646 $6,621,602







LIABILITIES AND EQUITY

Liabilities

Notes payable

Unsecured $3,224,871 $2,606,876 $2,524,099 $2,432,137 $2,431,336

Secured - - - 45,250 45,467

Accounts payable and accrued 167,453 156,841 171,719 170,689 128,371 expenses

Accrued real estate taxes 62,499 32,365 54,408 74,658 59,525

Distributions payable 84,138 84,112 80,973 80,764 80,767

Other liabilities^ (b) 172,172 164,052 215,581 187,367 187,368

Total liabilities 3,711,133 3,044,246 3,046,780 2,990,865 2,932,834



Equity

Common shares of beneficial 1,068 1,069 1,069 1,065 1,065 interest

Additional paid-in capital 4,574,387 4,569,995 4,566,731 4,538,422 4,533,667

Distributions in excess of netincome attributable to common (689,809 ) (623,570 ) (584,167 ) (599,615 ) (563,834 )shareholders

Treasury shares, at cost (341,637 ) (342,778 ) (348,419 ) (348,556 ) (348,480 )

Accumulated other comprehensive (5,797 ) (6,163 ) (6,529 ) (6,438 ) (6,795 )income (loss) ^(c)

Total common equity 3,538,212 3,598,553 3,628,685 3,584,878 3,615,623

Non-controlling interests 72,355 72,771 73,039 72,903 73,145

Total equity 3,610,567 3,671,324 3,701,724 3,657,781 3,688,768

Total liabilities and equity $7,321,700 $6,715,570 $6,748,504 $6,648,646 $6,621,602





(a) Includes net deferred $3,031 $3,399 $3,658 $4,358 $4,345 charges of:



(b) Includes deferred revenues $344 $375 $408 $497 $581 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 believesare useful in evaluating an equity REIT's performance. Camden's definitions andcalculations of non-GAAP financial measures may differ from those used by otherREITs, and thus may not be comparable. The non-GAAP financial measures shouldnot be considered as an alternative to net income as an indication of ouroperating performance, or to net cash provided by operating activities as ameasure of our liquidity.



FFO

The National Association of Real Estate Investment Trusts ("NAREIT") currentlydefines FFO as net income (computed in accordance with accounting principlesgenerally accepted in the United States of America ("GAAP")), excludingdepreciation and amortization related to real estate, gains (or losses) fromthe sale of certain real estate assets (depreciable real estate), impairmentsof certain real estate assets (depreciable real estate), gains or losses fromchange in control, and adjustments for unconsolidated joint ventures to reflectFFO on the same basis. Our calculation of diluted FFO also assumes conversionof all potentially dilutive securities, including certain non-controllinginterests, which are convertible into common shares. We consider FFO to be anappropriate supplemental measure of operating performance because, by excludinggains or losses on dispositions of depreciable real estate, and depreciation,FFO can assist in the comparison of the operating performance of a company'sreal estate investments between periods or to different companies. Areconciliation of net income attributable to common shareholders to FFO isprovided below:

Adjusted FFO

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

Three Months Ended June Six Months Ended June 30, 30,

2020 2019 2020 2019

Net income attributable to $16,477 $42,399 $59,761 $81,012 common shareholders ^(a)

Real estate depreciation and 90,500 82,796 180,011 161,471 amortization

Adjustments for unconsolidated 2,287 2,260 4,529 4,491 joint ventures

Income allocated to 1,103 1,180 2,385 2,324 non-controlling interests

Funds from operations $110,367 $128,635 $246,686 $249,298



Less: recurring capitalized (18,782 ) (21,166 ) (33,607 ) (30,821 )expenditures



Adjusted funds from operations $91,585 $107,469 $213,079 $218,477



Weighted average number of common shares outstanding:

EPS diluted 99,408 98,997 99,394 98,024

FFO/AFFO diluted 101,156 100,750 101,142 99,779



Three Months Ended June Six Months Ended June 30, 30,

2020 2019 2020 2019

Total Earnings Per Common Share $0.17 $0.43 $0.60 $0.82 - Diluted

Real estate depreciation and 0.89 0.82 1.78 1.62 amortization

Adjustments for unconsolidated 0.02 0.02 0.04 0.05 joint ventures

Income allocated to 0.01 0.01 0.02 0.01 non-controlling interests

FFO per common share - Diluted $1.09 $1.28 $2.44 $2.50



Less: recurring capitalized (0.18 ) (0.21 ) (0.33 ) (0.31 )expenditures



AFFO per common share - Diluted $0.91 $1.07 $2.11 $2.19

Net income attributable to common shareholders includes the approximate $14.4 million COVID-19 Related Impact for the three and six months ended June 30, 2020. The total COVID-19 Related Impact 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(a) 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 $4.1 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 $1.3 million in other directly related COVID-19 expenses. We also incurred approximately $0.8 million related to the Employee Relief Fund we established to help our employees impacted by COVID-19.

CAMDEN NON-GAAP FINANCIAL MEASURES

DEFINITIONS & RECONCILIATIONS

(In thousands, except per share amounts)

(Unaudited)

3Q20 Range

Low High

Expected earnings per common share - diluted $0.27 $0.33

Expected real estate depreciation and 0.84 0.84amortization

Expected adjustments for unconsolidated joint 0.02 0.02ventures

Expected income allocated to non-controlling 0.01 0.01interests

Expected FFO per share - diluted $1.14 $1.20

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:

Three months ended Six months ended June June 30, 30,

2020 2019 2020 2019

Net income ^(a) $17,511 $43,542 $61,978 $83,263

Less: Fee and asset management (2,380 ) (1,867 ) (4,907 ) (3,710 )income

Less: Interest and other income (325 ) (331 ) (654 ) (629 )

Less: (Income)/Loss on deferred (11,435 ) (3,856 ) 3,425 (14,212 )compensation plans

Plus: Property management expense 5,939 6,093 12,466 12,750

Plus: Fee and asset management 820 1,522 1,663 2,706 expense

Plus: General and administrative 14,391 13,261 27,624 26,569 expense

Plus: Interest expense 23,482 19,349 43,189 39,819

Plus: Depreciation and 92,803 84,646 184,662 164,920 amortization expense

Plus: Expense/(Benefit) on 11,435 3,856 (3,425 ) 14,212 deferred compensation plans

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

Less: Equity in income of joint (1,633 ) (1,909 ) (3,755 ) (3,821 )ventures

Plus: Income tax expense 394 228 861 396

NOI ^(b) (c) $151,002 $164,534 $322,745 $322,263



"Same Property" Communities $143,837 $145,508 $292,941 $286,551

Non-"Same Property" Communities 18,530 15,349 38,498 28,467

Development and Lease-Up 1,089 927 2,324 1,706 Communities

COVID-19 Related Impact ^(b) (c) (13,170 ) - (13,170 ) -

Dispositions/Other 716 2,750 2,152 5,539

NOI ^(b) (c) $151,002 $164,534 $322,745 $322,263

Net income includes the approximate $14.4 million COVID-19 Related Impact(a) for the three and six months ended June 30, 2020. 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 $4.1 million of COVID-19 expenses at our operating communities, which included $2.8 million of bonuses paid to(c) on-site employees who provided essential services during the pandemic and $1.3 million in other directly related COVID-19 expenses, for the three and six months ended June 30, 2020.

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 discontinuedoperations, excluding equity in (income) loss of joint ventures, (gain) loss onsale of unconsolidated joint venture interests, gain on acquisition ofcontrolling interest in joint ventures, gain on sale of operating propertiesincluding land, net of tax, loss on early retirement of debt and income (loss)allocated to non-controlling interests. The Company considers Adjusted EBITDAto be an appropriate supplemental measure of operating performance to netincome attributable to common shareholders because it represents income beforenon-cash depreciation and the cost of debt, and excludes gains or losses fromproperty dispositions. Annualized Adjusted EBITDA is Adjusted EBITDA asreported for the period multiplied by 4 for quarter results or 2 for 6 monthresults. A reconciliation of net income attributable to common shareholders toAdjusted EBITDA is provided below:

Three months ended June Six months ended June 30, 30,

2020 2019 2020 2019

Net income attributable to $16,477 $42,399 $59,761 $81,012 common shareholders ^(a)

Plus: Interest expense 23,482 19,349 43,189 39,819

Plus: Depreciation and 92,803 84,646 184,662 164,920 amortization expense

Plus: Income allocated to 1,034 1,143 2,217 2,251 non-controlling interests

Plus: Income tax expense 394 228 861 396

Plus: COVID-19 Related Impact ^ 13,920 - 13,920 - (b)

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

Less: Equity in income of joint (1,633 ) (1,909 ) (3,755 ) (3,821 )ventures

Adjusted EBITDA $146,477 $145,856 $300,473 $284,577

Annualized Adjusted EBITDA $585,908 $583,424 $600,946 $569,154

Net income attributable to common shareholders includes the approximate(a) $14.4 million COVID-19 Related Impact for the three and six months ended June 30, 2020. Please refer to page 28 of the supplement, footnote (a), for additional detail on the breakdown of the COVID-19 Related Impact.

Approximately $13.9 million of the stated COVID-19 Related Impact, which(b) 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.

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 June the six months ended June 30, 30,

2020 2019 2020 2019

Unsecured notes $3,224,594 $2,323,439 $2,929,272 $2,202,336 payable

Secured notes payable - 45,539 - 158,737

Total debt 3,224,594 2,368,978 2,929,272 2,361,073

Less: Cash and cash (558,090 ) (89,879 ) (282,409 ) (114,314 )equivalents

Net debt $2,666,504 $2,279,099 $2,646,863 $2,246,759

Net Debt to Annualized Adjusted EBITDA:

Three months ended Six months ended June June 30, 30,

2020 2019 2020 2019

Net debt $2,666,504 $2,279,099 $2,646,863 $2,246,759

Annualized Adjusted EBITDA 585,908 583,424 600,946 569,154

Net Debt to Annualized Adjusted 4.6x 3.9x 4.4x 3.9xEBITDA

View source version on businesswire.com: https://www.businesswire.com/news/home/20200730006026/en/

CONTACT: Kim Callahan, 713-354-2549