Document

EX-99.1 2 exhibit991earningsrelease2.htm EX-99.1 Document

CAMDEN PROPERTY TRUST ANNOUNCES SECOND QUARTER 2024 OPERATING RESULTS

Houston, Texas (August 1, 2024) - Camden Property Trust (NYSE:CPT) (the "Company") announced today operating results for the three and six months ended June 30, 2024. Net Income Attributable to Common Shareholders (“EPS”), Funds from Operations (“FFO”), Core Funds from Operations ("Core FFO"), and Core Adjusted Funds from Operations (“Core AFFO”) for the three and six months ended June 30, 2024 are detailed below. A reconciliation of EPS to FFO, Core FFO, and Core AFFO is included in the financial tables accompanying this press release.


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

Per Diluted Share	2024	2023	2024	2023
EPS	$0.40	$0.84	$1.17	$1.22
FFO	$1.71	$1.67	$3.37	$3.33
Core FFO	$1.71	$1.70	$3.41	$3.36
Core AFFO	$1.44	$1.51	$2.94	$3.01


	Three Months Ended	2Q24 Guidance	2Q24 Guidance
Per Diluted Share	June 30, 2024	Midpoint	Variance
EPS	$0.40	$0.36	$0.04
FFO	$1.71	$1.66	$0.05
Core FFO	$1.71	$1.67	$0.04


	Quarterly Growth	Sequential Growth	Year-To-Date Growth
Same Property Results	2Q24 vs. 2Q23	2Q24 vs. 1Q24	2024 vs. 2023
Revenues	1.4%	0.5%	2.0%
Expenses	2.5%	0.8%	2.7%
Net Operating Income ("NOI")	0.9%	0.4%	1.6%


Same Property Results	2Q24	2Q23	1Q24
Occupancy	95.3%	95.5%	95.0%

For 2024, the Company defines same property communities as communities wholly-owned and stabilized since January 1, 2023, excluding communities under redevelopment and properties held for sale. A reconciliation of net income to NOI and same property NOI is included in the financial tables accompanying this press release.

Operating Statistics - Same Property Portfolio


New Lease and Renewal Data - Date Signed (1)	July 2024*	July 2023	2Q24	2Q23
Signed New Lease Rates	(1.6)%	1.6%	(1.8)%	2.4%
Signed Renewal Rates	4.0%	5.2%	3.7%	6.0%
Signed Blended Lease Rates	0.9%	3.3%	0.8%	4.0%
New Lease and Renewal Data - Date Effective (2)	July 2024*	July 2023	2Q24	2Q23
Effective New Lease Rates	(1.5)%	2.0%	(2.6)%	2.3%
Effective Renewal Rates	3.7%	6.4%	3.3%	6.4%
Effective Blended Lease Rates	1.2%	4.1%	0.0%	4.0%

*Preliminary data as of July 31, 2024

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

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


Occupancy, Bad Debt and Turnover Data	July 2024*	July 2023	2Q24	2Q23
Occupancy	95.6%	95.6%	95.3%	95.5%
Bad Debt	N/A	1.7%	0.8%	1.5%
Annualized Gross Turnover	59%	65%	53%	54%
Annualized Net Turnover	47%	53%	42%	45%

*Preliminary data as of July 31, 2024

Development Activity

During the quarter, construction was completed at Camden Woodmill Creek in The Woodlands, TX. Construction commenced at Camden South Charlotte in Charlotte, NC and Camden Blakeney in Charlotte, NC. Additionally, leasing continued at Camden Durham in Durham, NC and Camden Long Meadow Farms in Richmond, TX.

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

Total

% Leased

Community Name

Location

Homes

Cost

as of 7/31/2024

Camden Woodmill Creek

The Woodlands, TX

189

$70.9

Development Communities - Construction Ongoing ($ in millions)


		Total	Total	% Leased
Community Name	Location	Homes	Estimated Cost	as of 7/31/2024
Camden Durham	Durham, NC	420	$145.0	69	%
Camden Long Meadow Farms	Richmond, TX	188	75.0	32	%
Camden Village District	Raleigh, NC	369	138.0
Camden South Charlotte	Charlotte, NC	420	163.0
Camden Blakeney	Charlotte, NC	349	154.0
Total		1,746	$675.0

Share Repurchase

During the quarter, Camden repurchased 44,692 common shares at an average price of $96.52 per share for a total of $4.3 million. Year to date, Camden repurchased 515,974 common shares at an average price of $96.88 for approximately $50.0 million. The Company currently has approximately $450.0 million remaining under its stock repurchase program.

Liquidity Analysis

As of June 30, 2024, Camden had nearly $1.3 billion of liquidity comprised of approximately $93.9 million in cash and cash equivalents, and $1.2 billion of availability under its unsecured credit facility. At quarter-end, the Company had approximately $297.9 million left to fund under its existing wholly-owned development pipeline.

Hurricane Impact

Subsequent to the quarter-end, Hurricane Beryl impacted several of our multifamily communities in the Houston, TX area. We are currently in the preliminary stage of assessing the effect of this event and expect the storm-related expenses for this incident to be in the range of approximately $2.0 million to $3.0 million, net of insurance proceeds. These estimates are preliminary and may change as we receive additional information.

Earnings Guidance

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


	3Q24	2024	2024 Midpoint
Per Diluted Share	Range	Range	Current	Prior	Change
EPS	$0.31 - $0.35	$1.83 - $1.93	$1.88	$1.86	$0.02
FFO	$1.63 - $1.67	$6.67 - $6.77	$6.72	$6.69	$0.03
Core FFO(1)	$1.66 - $1.70	$6.74 - $6.84	$6.79	$6.74	$0.05

(1) The Company's 2024 core FFO guidance includes approximately $0.07 per share of non-core adjustments for casualty-related expenses, legal costs, loss on early retirement of debt, severance, and expensed pursuit costs.







	2024	2024 Midpoint
Same Property Growth Guidance	Range	Current	Prior	Change
Revenues	1.00% - 2.00%	1.50%	1.50%	0.00%
Expenses	2.35% - 3.35%	2.85%	3.25%	(0.40)%
NOI	(0.25%) - 1.75%	0.75%	0.50%	0.25%

Camden intends to update its earnings guidance to the market on a quarterly basis. Additional information on the Company’s 2024 financial outlook including key assumptions for same property growth and a reconciliation of expected EPS to expected FFO and expected Core FFO are included in the financial tables accompanying this press release.

Conference Call

Friday, August 2, 2024 at 10:00 AM CT

Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061; Passcode: 5174172

Webcast: https://investors.camdenliving.com

The Company strongly encourages interested parties to join the call via webcast in order to view any associated videos, slide presentations, etc. The dial-in phone line will be reserved for accredited analysts and investors who plan to pose questions to Management during the Q&A session of the call.

Supplemental financial information is available in the Investors section of the Company’s website under Earnings Releases or by calling Camden’s Investor Relations Department at (713) 354-2787.

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements under the federal securities law. These statements are based on current expectations, estimates, and projections about the industry and markets in which Camden operates, management's beliefs, and assumptions made by management. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties which are difficult to predict. Factors which may cause the Company’s actual results or performance to differ materially from those contemplated by forward-looking statements are described under the heading “Risk Factors” in Camden’s Annual Report on Form 10-K and in other filings with the Securities and Exchange Commission (SEC). Forward-looking statements made in today’s press release represent management’s current opinions at the time of this publication, and the Company assumes no obligation to update or supplement these statements because of subsequent events.

About Camden

Camden Property Trust, an S&P 500 Company, is a real estate company primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns and operates 172 properties containing 58,250 apartment homes across the United States. Upon completion of 5 properties currently under development, the Company’s portfolio will increase to 59,996 apartment homes in 177 properties. Camden has been recognized as one of the 100 Best Companies to Work For® by FORTUNE magazine for 17 consecutive years, most recently ranking #24. For additional information, please contact Camden’s Investor Relations Department at (713) 354-2787 or access our website at camdenliving.com.



CAMDEN						OPERATING RESULTS
						(In thousands, except per share amounts)

(Unaudited)


	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
OPERATING DATA




Property revenues (a)	$387,150	$385,499	$770,291	$763,662

Property expenses
Property operating and maintenance	90,126	87,742	179,170	173,027
Real estate taxes	48,763	49,855	98,264	99,251
Total property expenses	138,889	137,597	277,434	272,278

Non-property income
Fee and asset management	2,606	718	3,890	1,296
Interest and other income	1,598	431	3,366	493
Income on deferred compensation plans	1,073	2,844	6,892	8,756
Total non-property income	5,277	3,993	14,148	10,545

Other expenses
Property management	9,846	8,751	19,240	17,048
Fee and asset management	475	420	918	833
General and administrative	18,154	15,863	34,847	31,219
Interest	32,227	33,578	64,764	66,421
Depreciation and amortization	145,894	143,054	290,696	285,498

Expense on deferred compensation plans	1,073	2,844	6,892	8,756
Total other expenses	207,669	204,510	417,357	409,775

Loss on early retirement of debt	—	(2,513)	(921)	(2,513)
Gain on sale of operating property	—	48,919	43,806	48,919



Income from continuing operations before income taxes	45,869	93,791	132,533	138,560
Income tax expense	(1,059)	(851)	(1,964)	(2,001)



Net income	44,810	92,940	130,569	136,559
Less income allocated to non-controlling interests	(1,893)	(1,841)	(3,763)	(3,543)
Net income attributable to common shareholders	$42,917	$91,099	$126,806	$133,016

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$44,810	$92,940	$130,569	$136,559
Other comprehensive income
Unrealized gain on cash flow hedging activities	—	—	85	—

Reclassification of net loss on cash flow hedging activities, prior service cost and net loss on post retirement obligation	361	358	1,450	717
Comprehensive income	45,171	93,298	132,104	137,276
Less income allocated to non-controlling interests	(1,893)	(1,841)	(3,763)	(3,543)
Comprehensive income attributable to common shareholders	$43,278	$91,457	$128,341	$133,733

PER SHARE DATA

Total earnings per common share - basic	$0.40	$0.84	$1.17	$1.22
Total earnings per common share - diluted	0.40	0.84	1.17	1.22



Weighted average number of common shares outstanding:
Basic	108,406	108,663	108,556	108,616
Diluted	108,424	109,392	108,577	108,636

(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, 2024, we recognized $387.2 million of property revenue which consisted of approximately $344.6 million of rental revenue and approximately $42.6 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 $385.5 million recognized for the three months ended June 30, 2023, made up of approximately $343.1 million of rental revenue and approximately $42.4 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, 2024, we recognized $770.3 million of property revenue which consisted of approximately $686.2 million of rental revenue and approximately $84.1 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. This compared to the $763.7 million of property revenue recognized for the six months ended June 30, 2023, made up of approximately $680.3 million of rental revenue and approximately $83.4 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. Revenue related to utility rebilling to residents was $10.5 million and $10.3 million for the three months ended June 30, 2024 and 2023, respectively and was $21.2 million and $20.8 million for the six months ended June 30 2024 and 2023, respectively.

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



CAMDEN						FUNDS FROM OPERATIONS
						(In thousands, except per share and property data amounts)

(Unaudited)


	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
FUNDS FROM OPERATIONS

Net income attributable to common shareholders	$42,917	$91,099	$126,806	$133,016
Real estate depreciation and amortization	142,895	140,013	284,742	279,400


Income allocated to non-controlling interests	1,893	1,841	3,763	3,543
Gain on sale of operating properties	—	(48,919)	(43,806)	(48,919)




Funds from operations	$187,705	$184,034	$371,505	$367,040

Plus: Casualty-related expenses, net of (recoveries)	(1,587)	981	(64)	939
Plus: Severance	—	—	506	—
Plus: Legal costs and settlements, net of recoveries	1,114	—	1,966	84
Plus: Loss on early retirement of debt	—	2,513	921	2,513
Plus: Expensed development & other pursuit costs	660	471	660	471

Less: Miscellaneous (income)/expense	—	(364)	—	(364)
Core funds from operations	$187,892	$187,635	$375,494	$370,683

Less: recurring capitalized expenditures (a)	(29,595)	(21,034)	(51,620)	(38,613)

Core adjusted funds from operations	$158,297	$166,601	$323,874	$332,070

PER SHARE DATA
Funds from operations - diluted	$1.71	$1.67	$3.37	$3.33
Core funds from operations - diluted	1.71	1.70	3.41	3.36
Core adjusted funds from operations - diluted	1.44	1.51	2.94	3.01
Distributions declared per common share	1.03	1.00	2.06	2.00


Weighted average number of common shares outstanding:
FFO/Core FFO/Core AFFO - diluted	110,018	110,262	110,171	110,232

PROPERTY DATA
Total operating properties (end of period) (b)	172	172	172	172
Total operating apartment homes in operating properties (end of period) (b)	58,250	58,961	58,250	58,961
Total operating apartment homes (weighted average)	58,244	59,039	58,290	58,938

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

(b) Includes joint ventures and properties held for sale, if any.

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



CAMDEN						BALANCE SHEETS
						(In thousands)

(Unaudited)


	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023
ASSETS
Real estate assets, at cost
Land	$1,716,515	$1,706,983	$1,711,873	$1,732,804	$1,727,182
Buildings and improvements	11,148,312	11,014,440	10,993,390	10,963,667	10,848,837
	12,864,827	12,721,423	12,705,263	12,696,471	12,576,019
Accumulated depreciation	(4,582,440)	(4,439,710)	(4,332,524)	(4,254,388)	(4,113,095)
Net operating real estate assets	8,282,387	8,281,713	8,372,739	8,442,083	8,462,924
Properties under development, including land	439,758	477,481	486,864	499,761	516,543




Total real estate assets	8,722,145	8,759,194	8,859,603	8,941,844	8,979,467
Accounts receivable – affiliates	9,903	10,350	11,905	12,057	12,121
Other assets, net (a)	245,625	233,137	244,182	237,594	239,958

Cash and cash equivalents	93,932	92,693	259,686	14,600	20,326
Restricted cash	7,969	8,230	8,361	8,369	8,531
Total assets	$9,079,574	$9,103,604	$9,383,737	$9,214,464	$9,260,403



LIABILITIES AND EQUITY
Liabilities
Notes payable
Unsecured	$3,222,569	$3,223,285	$3,385,309	$3,323,057	$3,352,415
Secured	330,241	330,184	330,127	330,071	330,015
Accounts payable and accrued expenses	212,247	213,896	222,599	211,759	192,613
Accrued real estate taxes	90,702	46,612	96,517	128,794	93,642
Distributions payable	113,506	113,556	110,427	110,463	110,465
Other liabilities (b)	183,377	182,443	186,987	175,341	189,711
Total liabilities	4,152,642	4,109,976	4,331,966	4,279,485	4,268,861




Equity
Common shares of beneficial interest	1,157	1,157	1,156	1,156	1,156
Additional paid-in capital	5,924,608	5,919,851	5,914,868	5,911,627	5,907,828
Distributions in excess of net income attributable to common shareholders	(710,633)	(641,663)	(613,651)	(727,117)	(666,218)
Treasury shares	(359,975)	(356,880)	(320,364)	(320,702)	(320,675)
Accumulated other comprehensive income/(loss) (c)	283	(78)	(1,252)	(699)	(1,057)
Total common equity	4,855,440	4,922,387	4,980,757	4,864,265	4,921,034
Non-controlling interests	71,492	71,241	71,014	70,714	70,508
Total equity	4,926,932	4,993,628	5,051,771	4,934,979	4,991,542
Total liabilities and equity	$9,079,574	$9,103,604	$9,383,737	$9,214,464	$9,260,403





(a) Includes net deferred charges of:	$3,703	$4,286	$5,879	$6,481	$7,033



(b) Includes deferred revenues of:	$894	$958	$1,030	$1,167	$1,239

(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						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.

Core FFO

Core FFO represents FFO as further adjusted for items not considered part of our core business operations, such as casualty-related expenses, net of recoveries, severance, legal costs and settlements, net of recoveries, loss on early retirement of debt, expensed transaction, development and other pursuit costs, net of recoveries, net below market lease amortization, pandemic resident relief, (gain)/loss on sale of land, advocacy contributions, and miscellaneous (income)/expense adjustments. We consider Core FFO to be a helpful supplemental measure of operating performance as it excludes not only depreciation expense of real estate assets, but it also excludes certain items which by their nature are not comparable period over period and therefore tends to obscure actual operating performance. Our definition of Core FFO may differ from other REITs, and there can be no assurance our basis for computing this measure is comparable to other REITs.

Core Adjusted FFO

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


	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Net income attributable to common shareholders	$42,917	$91,099	$126,806	$133,016
Real estate depreciation and amortization	142,895	140,013	284,742	279,400


Income allocated to non-controlling interests	1,893	1,841	3,763	3,543

Gain on sale of operating properties	—	(48,919)	(43,806)	(48,919)


Funds from operations	$187,705	$184,034	$371,505	$367,040

Plus: Casualty-related expenses, net of (recoveries)	(1,587)	981	(64)	939
Plus: Severance	—	—	506	—
Plus: Legal costs and settlements, net of recoveries	1,114	—	1,966	84
Plus: Loss on early retirement of debt	—	2,513	921	2,513
Plus: Expensed development & other pursuit costs	660	471	660	471

Less: Miscellaneous (income)/expense	—	(364)	—	(364)
Core funds from operations	$187,892	$187,635	$375,494	$370,683

Less: recurring capitalized expenditures	(29,595)	(21,034)	(51,620)	(38,613)

Core adjusted funds from operations	$158,297	$166,601	$323,874	$332,070

Weighted average number of common shares outstanding:
EPS diluted	108,424	109,392	108,577	108,636
FFO/Core FFO/ Core AFFO diluted	110,018	110,262	110,171	110,232



CAMDEN						NON-GAAP FINANCIAL MEASURES
						DEFINITIONS & RECONCILIATIONS
						(In thousands, except per share amounts)

(Unaudited)

Reconciliation of FFO, Core FFO, and Core AFFO per share






























	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Total Earnings Per Common Share - Diluted	$0.40	$0.84	$1.17	$1.22
Real estate depreciation and amortization	1.29	1.26	2.57	2.52

Income allocated to non-controlling interests	0.02	0.01	0.03	0.03
Gain on sale of operating property	—	(0.44)	(0.40)	(0.44)


FFO per common share - Diluted	$1.71	$1.67	$3.37	$3.33

Plus: Casualty-related expenses, net of (recoveries)	(0.02)	0.01	—	0.01
Plus: Severance	—	—	—	—
Plus: Legal costs and settlements, net of recoveries	0.01	—	0.02	—
Plus: Loss on early retirement of debt	—	0.02	0.01	0.02
Plus: Expensed development & other pursuit costs	0.01	—	0.01	—

Less: Miscellaneous (income)/expense	—	—	—	—
Core FFO per common share - Diluted	$1.71	$1.70	$3.41	$3.36

Less: recurring capitalized expenditures	(0.27)	(0.19)	(0.47)	(0.35)

Core AFFO per common share - Diluted	$1.44	$1.51	$2.94	$3.01

Expected FFO & Core FFO

Expected FFO and Core FFO is calculated in a method consistent with historical FFO and Core FFO, and is considered appropriate supplemental measures of expected operating performance when compared to expected earnings per common share (EPS). A reconciliation of the ranges provided for diluted EPS to expected FFO and expected Core FFO per diluted share is provided below:


	3Q24	Range	2024	Range
	Low	High	Low	High
Expected earnings per common share - diluted	$0.31	$0.35	$1.83	$1.93
Expected real estate depreciation and amortization	1.30	1.30	5.17	5.17

Expected income allocated to non-controlling interests	0.02	0.02	0.07	0.07

Expected (gain) on sale of operating properties	—	—	(0.40)	(0.40)


Expected FFO per share - diluted	$1.63	$1.67	$6.67	$6.77
Anticipated Adjustments to FFO	0.03	0.03	0.07	0.07
Expected Core FFO per share - diluted	$1.66	$1.70	$6.74	$6.84


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



CAMDEN						NON-GAAP FINANCIAL MEASURES
						DEFINITIONS & RECONCILIATIONS
						(In thousands, except per share amounts)

(Unaudited)

Net Operating Income (NOI)

NOI is defined by the Company as property revenue less property operating and maintenance expenses less real estate taxes. NOI is further detailed in the Components of Property NOI schedules on page 11 of the supplement. The Company considers NOI to be an appropriate supplemental measure of operating performance to net income attributable to common shareholders because it reflects the operating performance of our communities without allocation of corporate level property management overhead or general and administrative costs. Our definition of NOI may differ from other REITs and there can be no assurance our basis for computing this measure is comparable to other REITs. A reconciliation of net income to net operating income is provided below:


	Three months ended June 30,		Six months ended June 30,
	2024	2023	2024	2023
Net income	$44,810	$92,940	$130,569	$136,559
Less: Fee and asset management income	(2,606)	(718)	(3,890)	(1,296)
Less: Interest and other income	(1,598)	(431)	(3,366)	(493)
Less: Income on deferred compensation plans	(1,073)	(2,844)	(6,892)	(8,756)
Plus: Property management expense	9,846	8,751	19,240	17,048
Plus: Fee and asset management expense	475	420	918	833
Plus: General and administrative expense	18,154	15,863	34,847	31,219
Plus: Interest expense	32,227	33,578	64,764	66,421
Plus: Depreciation and amortization expense	145,894	143,054	290,696	285,498

Plus: Expense on deferred compensation plans	1,073	2,844	6,892	8,756
Plus: Loss on early retirement of debt	—	2,513	921	2,513
Less: Gain on sale of operating property	—	(48,919)	(43,806)	(48,919)



Plus: Income tax expense	1,059	851	1,964	2,001




NOI	$248,261	$247,902	$492,857	$491,384

"Same Property" Communities	$235,481	$233,450	$470,115	$462,828
Non-"Same Property" Communities	8,935	7,124	18,078	13,294
Development and Lease-Up Communities	449	(4)	451	(7)

Disposition/Other	3,396	7,332	4,213	15,269
NOI	$248,261	$247,902	$492,857	$491,384



CAMDEN						NON-GAAP FINANCIAL MEASURES
						DEFINITIONS & RECONCILIATIONS
						(In thousands, except per share amounts)

(Unaudited)

EBITDAre and Adjusted EBITDAre

Earnings Before Interest, Taxes, Depreciation, and Amortization for Real Estate (“EBITDAre”) and Adjusted EBITDAre are supplemental measures of our financial performance. EBITDAre is calculated in accordance with the definition adopted by NAREIT as earnings before interest, taxes, depreciation and amortization plus or minus losses and gains on the disposition of depreciated property, including gains (losses) on change of control, plus impairment write-downs of depreciated property with adjustments to reflect the Company’s share of EBITDAre of unconsolidated joint ventures.

Adjusted EBITDAre represents EBITDAre as further adjusted for non-core items. Adjusted EBITDAre excludes equity in (income) loss of joint ventures, (gain) loss on land, and loss on early retirement of debt. The Company considers EBITDAre and Adjusted EBITDAre to be appropriate supplemental measures of operating performance to net income because it represents income before non-cash depreciation and the cost of debt, and excludes gains or losses from property dispositions. Annualized Adjusted EBITDAre is Adjusted EBITDAre as reported for the period multiplied by 4 for quarter results or 2 for 6 month results. A reconciliation of net income to EBITDAre and adjusted EBITDAre is provided below:


	Three months ended June 30,		Six months ended June 30,
	2024	2023	2024	2023
Net income	$44,810	$92,940	$130,569	$136,559
Plus: Interest expense	32,227	33,578	64,764	66,421

Plus: Depreciation and amortization expense	145,894	143,054	290,696	285,498


Plus: Income tax expense	1,059	851	1,964	2,001


Less: Gain on sale of operating property	—	(48,919)	(43,806)	(48,919)



EBITDAre	$223,990	$221,504	$444,187	$441,560
Plus: Casualty-related expenses, net of (recoveries)	(1,587)	981	(64)	939
Plus: Severance	—	—	506	—
Plus: Legal costs and settlements, net of recoveries	1,114	—	1,966	84
Plus: Loss on early retirement of debt	—	2,513	921	2,513
Plus: Expensed development & other pursuit costs	660	471	660	471


Less: Miscellaneous (income)/expense	—	(364)	—	(364)
Adjusted EBITDAre	$224,177	$225,105	$448,176	$445,203
Annualized Adjusted EBITDAre	$896,708	$900,420	$896,352	$890,406

Net Debt to Annualized Adjusted EBITDAre

The Company believes Net Debt to Annualized Adjusted EBITDAre to be an appropriate supplemental measure of evaluating balance sheet leverage. Net Debt is defined by the Company as the average monthly balance of Total Debt during the period, less the average monthly balance of Cash and Cash Equivalents during the period. The following tables reconcile average Total debt to Net debt and computes the ratio to Adjusted EBITDAre for the following periods:

Net Debt:


	Average monthly balance for the		Average monthly balance for the
	Three months ended June 30,		Six months ended June 30,
	2024	2023	2024	2023
Unsecured notes payable	$3,220,334	$3,364,180	$3,232,903	$3,316,971
Secured notes payable	330,222	391,732	330,194	453,409
Total debt	3,550,556	3,755,912	3,563,097	3,770,380
Less: Cash and cash equivalents	(54,686)	(6,775)	(60,347)	(8,650)
Net debt	$3,495,870	$3,749,137	$3,502,750	$3,761,730

Net Debt to Annualized Adjusted EBITDAre:


	Three months ended June 30,		Six months ended June 30,
	2024	2023	2024	2023
Net debt	$3,495,870	$3,749,137	$3,502,750	$3,761,730
Annualized Adjusted EBITDAre	896,708	900,420	896,352	890,406
Net Debt to Annualized Adjusted EBITDAre	3.9x	4.2x	3.9x	4.2x