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

Camden Property Trust Announces Second Quarter 2021 Operating Results

Jul. 29, 2021

HOUSTON--(BUSINESS WIRE)--Jul. 29, 2021--Camden Property Trust (NYSE:CPT) (the "Company") announced today operating results for the three and six months ended June 30, 2021. 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, 2021 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 2021 2020 2021 2020

EPS $0.30 $0.17 $0.61 $0.60

FFO $1.28 $1.09 $2.52 $2.44

AFFO $1.10 $0.91 $2.21 $2.11

Quarterly Growth

Sequential Growth

Year-To-Date Growth

Same Property Results

2Q21 vs. 2Q20

2Q21 vs. 1Q21

2021 vs. 2020

Revenues

4.1%

2.3%

1.9%

Expenses

6.2%

1.7%

5.8%

Net Operating Income ("NOI")

3.0%

2.7%

(0.3)%

Quarterly Sequential Year-To-Date Growth Growth Growth

Same Property Results 2Q21 vs. 2Q20 2Q21 vs. 1Q21 2021 vs. 2020

Revenues 4.1% 2.3% 1.9%

Expenses 6.2% 1.7% 5.8%

Net Operating Income 3.0% 2.7% (0.3)%("NOI")

Same Property Results

2Q21

2Q20

1Q21

Occupancy

96.9%

95.1%

96.0%

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.

July Collections

Same Property Results 2Q21 2Q20 1Q21

Occupancy 96.9% 95.1% 96.0%

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.

July Collections

Same Property Scheduled Rents* July 2021 July 2020 2Q21 2Q20

Collected 97.9% 98.7% 98.7% 97.3%

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

Delinquent 2.1% 1.3% 1.3% 1.6%

*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 ^ July July 2Q21^ 2Q20^(1) (2) 2021* 2020 (2) (2)

New Lease Rates 18.7% (2.2)% 9.3% (2.8)%

Renewal Rates 10.5% 1.1% 6.7% 0.3%

Blended Rates 14.6% (0.7)% 8.0% (1.1)%



New Leases 1,530 1,839 2,099 1,834

Renewals 1,606 1,790 2,173 2,169

Total Leases 3,136 3,629 4,272 4,003

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

July 2021*

July 2020

2Q21(4)

2Q20(4)

New Lease Rates

13.3%

(2.5)%

5.4%

(2.3)%

Renewal Rates

6.4%

0.1%

4.0%

2.3%

Blended Rates

9.8%

(1.2)%

4.7%

0.2%

New Leases

2,296

2,286

1,880

1,571

Renewals

2,378

2,502

1,765

1,977

Total Leases

4,674

4,788

3,645

3,548

New Lease and Renewal Data - Date Effective^ July July 2Q21^ 2Q20^(3) (4) 2021* 2020 (4) (4)

New Lease Rates 13.3% (2.5)% 5.4% (2.3)%

Renewal Rates 6.4% 0.1% 4.0% 2.3%

Blended Rates 9.8% (1.2)% 4.7% 0.2%



New Leases 2,296 2,286 1,880 1,571

Renewals 2,378 2,502 1,765 1,977

Total Leases 4,674 4,788 3,645 3,548

*Data as of July 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.

*Data as of July 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.

Occupancy and Turnover Data

July 2021*

July 2020

2Q21

2Q20

Occupancy

97.1%

95.2%

96.9%

95.1%

Annualized Gross Turnover

56%

61%

54%

54%

Annualized Net Turnover

47%

48%

45%

44%

*Data as of July 26, 2021

Development Activity

During the quarter, lease-up was completed at Camden RiNo in Denver, CO and Camden Cypress Creek II (JV) in Cypress, TX, and leasing began at Camden Hillcrest in San Diego, CA.

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

Occupancy and Turnover Data July 2021* July 2020 2Q21 2Q20

Occupancy 97.1% 95.2% 96.9% 95.1%

Annualized Gross Turnover 56% 61% 54% 54%

Annualized Net Turnover 47% 48% 45% 44%

*Data as of July 26, 2021

Development Activity

During the quarter, lease-up was completed at Camden RiNo in Denver, CO and Camden Cypress Creek II (JV) in Cypress, TX, and 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 7/25/2021

Camden Downtown I Houston, TX 271 $131.6 92 %

Development Communities - Construction Ongoing ($ in millions)

Total Total % Leased

Community Name Location Homes Estimated Cost as of 7/25/2021

Camden North End II Phoenix, AZ 343 $87.0 76 %

Camden Lake Eola Orlando, FL 360 125.0 57 %

Camden Buckhead Atlanta, GA 366 160.0 43 %

Camden Hillcrest San Diego, CA 132 95.0 16 %

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 $907.0

Acquisition Activity

During the quarter, the Company acquired Camden Franklin Park, a 328-home apartment community located in Franklin, TN, for approximately $105.3 million, and acquired Camden Music Row, a 430-home apartment community located in Nashville, TN, for approximately $186.3 million.

In June 2021, Camden acquired a 14.6-acre land parcel in The Woodlands, TX for approximately $9.3 million, and a 0.2-acre land parcel in St. Petersburg, FL for approximately $2.1 million for future development purposes.

Equity Issuance

During the three and six months ended June 30, 2021, the Company issued approximately 2.9 million common shares through its at-the-market ("ATM") share offering program at an average price of $126.64 per share, for total net consideration of approximately $358.8 million.

Liquidity Analysis

As of June 30, 2021, Camden had approximately $1.3 billion of liquidity comprised of approximately $375 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 $302 million left to fund under its existing wholly-owned development pipeline. As of June 30, 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 third quarter 2021 as detailed below.

3Q21 2021 2021 Midpoint

Per Diluted Share Range Range Current Prior Change

EPS $0.22 - $0.28 $1.09 - $1.29 $1.19 $0.99 $0.20

FFO $1.30 - $1.36 $5.17 - $5.37 $5.27 $5.09 $0.18



2021 2021 Midpoint

Same Property Growth Range Current Prior Change

Revenues 3.25% - 4.25% 3.75% 1.60% 2.15%

Expenses 3.35% - 4.15% 3.75% 3.90% (0.15)%

NOI 2.75% - 4.75% 3.75% 0.25% 3.50%

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, July 30, 2021 at 10:00 AM CT Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061 Passcode: 4745317 Webcast: https://services.choruscall.com/mediaframe/webcast.html?webcastid=Y0Uocwtj

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 169 properties containing 57,611 apartment homes across the United States. Upon completion of 8 properties currently under development, the Company's portfolio will increase to 60,219 apartment homes in 177 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.

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,

2021 2020 2021 2020

OPERATING DATA



Property revenues ^(a) $276,523 $250,683 $544,091 $516,562



Property expenses

Property operating and 65,544 64,641 129,023 124,597 maintenance

Real estate taxes 37,427 35,040 74,880 69,220

Total property expenses 102,971 99,681 203,903 193,817



Non-property income

Fee and asset management 2,263 2,380 4,469 4,907

Interest and other income 257 325 589 654

Income/(loss) on deferred 6,400 11,435 10,026 (3,425 )compensation plans

Total non-property income 8,920 14,140 15,084 2,136



Other expenses

Property management 6,436 5,939 12,560 12,466

Fee and asset management 1,019 820 2,151 1,663

General and administrative 15,246 14,391 29,468 27,624

Interest 24,084 23,482 47,728 43,189

Depreciation and amortization 99,586 92,803 192,727 184,662

Expense/(benefit) on deferred 6,400 11,435 10,026 (3,425 )compensation plans

Total other expenses 152,771 148,870 294,660 266,179



Gain on sale of land - - - 382

Equity in income of joint 2,198 1,633 4,112 3,755 ventures

Income from continuing operations 31,899 17,905 64,724 62,839 before income taxes

Income tax expense (460 ) (394 ) (812 ) (861 )

Net income 31,439 17,511 63,912 61,978

Less income allocated to (1,260 ) (1,034 ) (2,386 ) (2,217 )non-controlling interests

Net income attributable to common $30,179 $16,477 $61,526 $59,761 shareholders ^(b)



CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Net income $31,439 $17,511 $63,912 $61,978

Other comprehensive income

Reclassification of net loss oncash flow hedging activities, 372 366 745 732 prior service cost and net losson post retirement obligation

Comprehensive income 31,811 17,877 64,657 62,710

Less income allocated to (1,260 ) (1,034 ) (2,386 ) (2,217 )non-controlling interests

Comprehensive income attributable $30,551 $16,843 $62,271 $60,493 to common shareholders



PER SHARE DATA



Total earnings per common share - $0.30 $0.17 $0.61 $0.60 basic

Total earnings per common share - 0.30 0.17 0.61 0.60 diluted



Weighted average number of common shares outstanding:

Basic 100,701 99,399 100,127 99,348

Diluted 100,767 99,408 100,197 99,394

(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 June 30, 2021, we recognized $276.5 million of property revenue which consisted of approximately $242.9 million of rental revenue and approximately $33.6 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 $250.7 million recognized for the three months ended June 30, 2020, made up 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. For the six months ended June 30, 2021, we recognized $544.1 million of property revenue which consisted of approximately $478.6 million of rental revenue and approximately $65.5 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. This compares to $516.6 million of property revenue recognized for the six months ended June 30, 2020, made up 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. Revenue related to utility rebilling to residents was $7.6 million and $7.1 million for the three months ended June 30, 2021 and 2020, respectively, and was $15.3 million and $14.0 million for the six months ended June 30, 2021 and 2020, respectively.

(b)

Net income attributable to common shareholders for the three and six months ended June 30, 2020 was negatively impacted by an approximate $14.4 million Pandemic Related Impact. Please refer to page 27 of the supplement, footnote (a), for additional detail on the breakdown of the Pandemic 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 June 30, 2021, we recognized $276.5 million of property revenue which consisted of approximately $242.9 million of rental revenue and approximately $33.6 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 $250.7 million recognized for the three months ended June 30, 2020, made up 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(a) contracts. For the six months ended June 30, 2021, we recognized $544.1 million of property revenue which consisted of approximately $478.6 million of rental revenue and approximately $65.5 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. This compares to $516.6 million of property revenue recognized for the six months ended June 30, 2020, made up 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. Revenue related to utility rebilling to residents was $7.6 million and $7.1 million for the three months ended June 30, 2021 and 2020, respectively, and was $15.3 million and $14.0 million for the six months ended June 30, 2021 and 2020, respectively.



Net income attributable to common shareholders for the three and six months ended June 30, 2020 was negatively impacted by an approximate $14.4 million(b) Pandemic Related Impact. Please refer to page 27 of the supplement, footnote (a), for additional detail on the breakdown of the Pandemic Related Impact.

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 June 30,

Six Months Ended June 30,

2021

2020

2021

2020

FUNDS FROM OPERATIONS

Net income attributable to common shareholders (a)

$30,179

$16,477

$61,526

$59,761

Real estate depreciation and amortization

97,122

90,500

187,829

180,011

Adjustments for unconsolidated joint ventures

2,630

2,287

5,229

4,529

Income allocated to non-controlling interests

1,260

1,103

2,386

2,385

Funds from operations

$131,191

$110,367

$256,970

$246,686

Less: recurring capitalized expenditures (b)

(18,808

)

(18,782

)

(31,488

)

(33,607

)

Adjusted funds from operations

$112,383

$91,585

$225,482

$213,079

PER SHARE DATA

Funds from operations - diluted

$1.28

$1.09

$2.52

$2.44

Adjusted funds from operations - diluted

1.10

0.91

2.21

2.11

Distributions declared per common share

0.83

0.83

1.66

1.66

Weighted average number of common shares outstanding:

FFO/AFFO - diluted

102,444

101,156

101,896

101,142

PROPERTY DATA

Total operating properties (end of period) (c)

169

164

169

164

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

57,611

56,112

57,611

56,112

Total operating apartment homes (weighted average)

49,887

49,069

49,663

49,043

CAMDEN FUNDS FROM OPERATIONS

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

(Unaudited)

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

2021 2020 2021 2020

FUNDS FROM OPERATIONS



Net income attributable to common $30,179 $16,477 $61,526 $59,761 shareholders^ (a)

Real estate depreciation and 97,122 90,500 187,829 180,011 amortization

Adjustments for unconsolidated 2,630 2,287 5,229 4,529 joint ventures

Income allocated to 1,260 1,103 2,386 2,385 non-controlling interests

Funds from operations $131,191 $110,367 $256,970 $246,686



Less: recurring capitalized (18,808 ) (18,782 ) (31,488 ) (33,607 )expenditures^ (b)



Adjusted funds from operations $112,383 $91,585 $225,482 $213,079



PER SHARE DATA

Funds from operations - diluted $1.28 $1.09 $2.52 $2.44

Adjusted funds from operations - 1.10 0.91 2.21 2.11 diluted

Distributions declared per common 0.83 0.83 1.66 1.66 share



Weighted average number of common shares outstanding:

FFO/AFFO - diluted 102,444 101,156 101,896 101,142



PROPERTY DATA

Total operating properties (end 169 164 169 164 of period) ^(c)

Total operating apartment homesin operating properties (end of 57,611 56,112 57,611 56,112period) ^(c)

Total operating apartment homes 49,887 49,069 49,663 49,043 (weighted average)

(a)

Net income attributable to common shareholders for the three and six months ended June 30, 2020 was negatively impacted by an approximate $14.4 million Pandemic Related Impact. Please refer to page 27 of the supplement, footnote (a), for additional detail on the breakdown of the Pandemic 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 for the three and six months ended June 30, 2020 was negatively impacted by an approximate $14.4 million(a) Pandemic Related Impact. Please refer to page 27 of the supplement, footnote (a), for additional detail on the breakdown of the Pandemic 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.

CAMDEN

BALANCE SHEETS

(In thousands)

(Unaudited)

Jun 30,2021

Mar 31,2021

Dec 31,2020

Sep 30,2020

Jun 30,2020

ASSETS

Real estate assets, at cost

Land

$1,285,634

$1,233,937

$1,225,214

$1,216,942

$1,206,656

Buildings and improvements

8,288,865

7,863,707

7,763,748

7,677,676

7,597,165

9,574,499

9,097,644

8,988,962

8,894,618

8,803,821

Accumulated depreciation

(3,219,085

)

(3,124,504

)

(3,034,186

)

(2,944,769

)

(2,857,124

)

Net operating real estate assets

6,355,414

5,973,140

5,954,776

5,949,849

5,946,697

Properties under development, including land

443,100

541,958

564,215

522,664

514,336

Investments in joint ventures

18,415

18,800

18,994

20,992

21,735

Total real estate assets

6,816,929

6,533,898

6,537,985

6,493,505

6,482,768

Accounts receivable - affiliates

19,183

19,502

20,158

20,152

21,432

Other assets, net (a)

241,687

213,126

216,276

217,534

211,823

Cash and cash equivalents

374,556

333,402

420,441

589,614

601,584

Restricted cash

4,762

4,105

4,092

3,918

4,093

Total assets

$7,457,117

$7,104,033

$7,198,952

$7,324,723

$7,321,700

LIABILITIES AND EQUITY

Liabilities

Notes payable

Unsecured

$3,168,492

$3,167,557

$3,166,625

$3,225,799

$3,224,871

Accounts payable and accrued expenses

155,057

159,111

175,608

183,654

167,453

Accrued real estate taxes

66,696

33,155

66,156

87,159

62,499

Distributions payable

86,689

84,282

84,147

84,137

84,138

Other liabilities (b)

193,975

185,852

189,829

177,967

172,172

Total liabilities

3,670,909

3,629,957

3,682,365

3,758,716

3,711,133

Equity

Common shares of beneficial interest

1,098

1,070

1,069

1,068

1,068

Additional paid-in capital

4,953,703

4,588,056

4,581,710

4,577,813

4,574,387

Distributions in excess of net income attributable to common shareholders

(897,761

)

(842,628

)

(791,079

)

(737,556

)

(689,809

)

Treasury shares

(334,161

)

(335,511

)

(341,412

)

(341,831

)

(341,637

)

Accumulated other comprehensive income (loss) (c)

(4,638

)

(5,010

)

(5,383

)

(5,431

)

(5,797

)

Total common equity

3,718,241

3,405,977

3,444,905

3,494,063

3,538,212

Non-controlling interests

67,967

68,099

71,682

71,944

72,355

Total equity

3,786,208

3,474,076

3,516,587

3,566,007

3,610,567

Total liabilities and equity

$7,457,117

$7,104,033

$7,198,952

$7,324,723

$7,321,700

(a) Includes net deferred charges of:

$1,655

$2,031

$2,299

$2,686

$3,031

(b) Includes deferred revenues of:

$232

$256

$284

$314

$344

(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)

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

ASSETS

Real estate assets, at cost

Land $1,285,634 $1,233,937 $1,225,214 $1,216,942 $1,206,656

Buildings and 8,288,865 7,863,707 7,763,748 7,677,676 7,597,165 improvements

9,574,499 9,097,644 8,988,962 8,894,618 8,803,821

Accumulated (3,219,085 ) (3,124,504 ) (3,034,186 ) (2,944,769 ) (2,857,124 )depreciation

Net operatingreal estate 6,355,414 5,973,140 5,954,776 5,949,849 5,946,697 assets

Propertiesunder 443,100 541,958 564,215 522,664 514,336 development,including land

Investments in 18,415 18,800 18,994 20,992 21,735 joint ventures

Total real 6,816,929 6,533,898 6,537,985 6,493,505 6,482,768 estate assets

Accountsreceivable - 19,183 19,502 20,158 20,152 21,432 affiliates

Other assets, 241,687 213,126 216,276 217,534 211,823 net ^(a)

Cash and cash 374,556 333,402 420,441 589,614 601,584 equivalents

Restricted cash 4,762 4,105 4,092 3,918 4,093

Total assets $7,457,117 $7,104,033 $7,198,952 $7,324,723 $7,321,700







LIABILITIES AND EQUITY

Liabilities

Notes payable

Unsecured $3,168,492 $3,167,557 $3,166,625 $3,225,799 $3,224,871

Accountspayable and 155,057 159,111 175,608 183,654 167,453 accruedexpenses

Accrued real 66,696 33,155 66,156 87,159 62,499 estate taxes

Distributions 86,689 84,282 84,147 84,137 84,138 payable

Otherliabilities^ 193,975 185,852 189,829 177,967 172,172 (b)

Total 3,670,909 3,629,957 3,682,365 3,758,716 3,711,133 liabilities



Equity

Common sharesof beneficial 1,098 1,070 1,069 1,068 1,068 interest

Additional 4,953,703 4,588,056 4,581,710 4,577,813 4,574,387 paid-in capital

Distributionsin excess ofnet income (897,761 ) (842,628 ) (791,079 ) (737,556 ) (689,809 )attributable tocommonshareholders

Treasury shares (334,161 ) (335,511 ) (341,412 ) (341,831 ) (341,637 )

Accumulatedothercomprehensive (4,638 ) (5,010 ) (5,383 ) (5,431 ) (5,797 )income (loss) ^(c)

Total common 3,718,241 3,405,977 3,444,905 3,494,063 3,538,212 equity

Non-controlling 67,967 68,099 71,682 71,944 72,355 interests

Total equity 3,786,208 3,474,076 3,516,587 3,566,007 3,610,567

Totalliabilities and $7,457,117 $7,104,033 $7,198,952 $7,324,723 $7,321,700 equity











(a) Includesnet deferred $1,655 $2,031 $2,299 $2,686 $3,031 charges of:



(b) Includesdeferred $232 $256 $284 $314 $344 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 Six Months Ended June June 30, 30,

2021 2020 2021 2020

Net income attributable to common $30,179 $16,477 $61,526 $59,761 shareholders ^(a)

Real estate depreciation and 97,122 90,500 187,829 180,011 amortization

Adjustments for unconsolidated 2,630 2,287 5,229 4,529 joint ventures

Income allocated to 1,260 1,103 2,386 2,385 non-controlling interests

Funds from operations $131,191 $110,367 $256,970 $246,686



Less: recurring capitalized (18,808 ) (18,782 ) (31,488 ) (33,607 )expenditures



Adjusted funds from operations $112,383 $91,585 $225,482 $213,079



Weighted average number of common shares outstanding:

EPS diluted 100,767 99,408 100,197 99,394

FFO/AFFO diluted 102,444 101,156 101,896 101,142



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

2021 2020 2021 2020

Total Earnings Per Common Share - $0.30 $0.17 $0.61 $0.60 Diluted

Real estate depreciation and 0.95 0.89 1.84 1.78 amortization

Adjustments for unconsolidated 0.02 0.02 0.05 0.04 joint ventures

Income allocated to 0.01 0.01 0.02 0.02 non-controlling interests

FFO per common share - Diluted $1.28 $1.09 $2.52 $2.44



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



AFFO per common share - Diluted $1.10 $0.91 $2.21 $2.11

(a)

Net income attributable to common shareholders includes the approximate $14.4 million Pandemic Related Impact for the three and six months ended June 30, 2020. The total Pandemic 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 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 pandemic 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 pandemic expenses. We also incurred approximately $0.8 million related to the Employee Relief Fund we established to help our employees impacted by the pandemic.

Net income attributable to common shareholders includes the approximate $14.4 million Pandemic Related Impact for the three and six months ended June 30, 2020. The total Pandemic 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 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 $4.1 million of pandemic 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 pandemic expenses. We also incurred approximately $0.8 million related to the Employee Relief Fund we established to help our employees impacted by the pandemic.



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:

3Q21 Range 2021 Range

Low High Low High

Expected earnings per common share - diluted $0.22 $0.28 $1.09 $1.29

Expected real estate depreciation and 1.04 1.04 3.93 3.93 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 $1.30 $1.36 $5.17 $5.37





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 Six months ended June June 30, 30,

2021 2020 2021 2020

Net income^ (a) $31,439 $17,511 $63,912 $61,978

Less: Fee and asset management (2,263 ) (2,380 ) (4,469 ) (4,907 )income

Less: Interest and other income (257 ) (325 ) (589 ) (654 )

Less: (Income)/loss on deferred (6,400 ) (11,435 ) (10,026 ) 3,425 compensation plans

Plus: Property management expense 6,436 5,939 12,560 12,466

Plus: Fee and asset management 1,019 820 2,151 1,663 expense

Plus: General and administrative 15,246 14,391 29,468 27,624 expense

Plus: Interest expense 24,084 23,482 47,728 43,189

Plus: Depreciation and 99,586 92,803 192,727 184,662 amortization expense

Plus: Expense/(benefit) on 6,400 11,435 10,026 (3,425 )deferred compensation plans

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

Less: Equity in income of joint (2,198 ) (1,633 ) (4,112 ) (3,755 )ventures

Plus: Income tax expense 460 394 812 861

NOI^ (b) (c) $173,552 $151,002 $340,188 $322,745



"Same Property" Communities $154,560 $150,102 $305,043 $306,056

Non-"Same Property" Communities 15,995 13,687 30,485 28,114

Development and Lease-Up 1,888 (339 ) 2,993 (414 )Communities

Pandemic Related Impact^ (b) (c) - (13,170 ) - (13,170 )

Other 1,109 722 1,667 2,159

NOI^ (b) (c) $173,552 $151,002 $340,188 $322,745

(a)

Net income includes the approximate $14.4 million of Pandemic Related Impact for the three and six months ended June 30, 2020. Please refer to page 27 of the supplement, footnote (a), for additional detail on the breakdown of the Pandemic Related Impact.

(b)

Two Resident Relief Funds were established for residents experiencing financial losses caused by the 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 $4.1 million of pandemic 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 pandemic expenses, for the three and six months ended June 30, 2020.

Net income includes the approximate $14.4 million of Pandemic Related(a) Impact for the three and six months ended June 30, 2020. Please refer to page 27 of the supplement, footnote (a), for additional detail on the breakdown of the Pandemic Related Impact.



Two Resident Relief Funds were established for residents experiencing financial losses caused by the pandemic, and paid out approximately $9.1(b) 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 pandemic 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 pandemic 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 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 the direct Pandemic 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. 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 the direct Pandemic 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. A reconciliation of net income attributable to common shareholders to Adjusted EBITDA is provided below:

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

2021 2020 2021 2020

Net income attributable to common $30,179 $16,477 $61,526 $59,761 shareholders^ (a)

Plus: Interest expense 24,084 23,482 47,728 43,189

Plus: Depreciation and 99,586 92,803 192,727 184,662 amortization expense

Plus: Income allocated to 1,260 1,034 2,386 2,217 non-controlling interests

Plus: Income tax expense 460 394 812 861

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

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

Less: Equity in income of joint (2,198 ) (1,633 ) (4,112 ) (3,755 )ventures

Adjusted EBITDA $153,371 $146,477 $301,067 $300,473

Annualized Adjusted EBITDA $613,484 $585,908 $602,134 $600,946

(a)

Net income attributable to common shareholders includes the approximate $14.4 million Pandemic Related Impact for the three and six months ended June 30, 2020. Please refer to page 27 of the supplement, footnote (a), for additional detail on the breakdown of the Pandemic Related Impact.

(b)

Approximately $13.9 million of the stated Pandemic Related Impact, which consists of the Resident Relief Funds, Employee Relief Fund, directly-related pandemic expenses, and bonuses 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:

Net income attributable to common shareholders includes the approximate(a) $14.4 million Pandemic Related Impact for the three and six months ended June 30, 2020. Please refer to page 27 of the supplement, footnote (a), for additional detail on the breakdown of the Pandemic Related Impact.



Approximately $13.9 million of the stated Pandemic Related Impact, which(b) consists of the Resident Relief Funds, Employee Relief Fund, directly-related pandemic expenses, and bonuses 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 Average monthly balance for the for the

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

2021 2020 2021 2020

Unsecured notes payable $3,168,180 $3,224,594 $3,167,713 $2,929,272

Total debt 3,168,180 3,224,594 3,167,713 2,929,272

Less: Cash and cash (347,724 ) (558,090 ) (318,812 ) (282,409 )equivalents

Net debt $2,820,456 $2,666,504 $2,848,901 $2,646,863

Net Debt to Annualized Adjusted EBITDA:

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

2021 2020 2021 2020

Net debt $2,820,456 $2,666,504 $2,848,901 $2,646,863

Annualized Adjusted 613,484 585,908 602,134 600,946 EBITDA

Net Debt toAnnualized Adjusted 4.6x 4.6x 4.7x 4.4x EBITDA

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CONTACT: Kim Callahan, 713-354-2549