Camden Property Trust (NYSE:CPT) today announced operating results for the three months ended March 31, 2016.
“We are pleased to announce recent dispositions of $630 million as part of our capital recycling initiatives and continued steps toward improving the quality of our portfolio,” said Richard J. Campo, Camden’s Chairman and CEO. "Since 2011, we have completed the sale of $2.4 billion of assets and expect total dispositions to approach nearly $3 billion by the end of 2016. Over the same time period, we have grown our average monthly revenue per occupied home by over 50% while lowering the average age of our portfolio."
Highlights
- Completed sale of Las Vegas portfolio for $630 million
- Anticipate $400 - $600 million of additional asset sales
- Revised 2016 disposition guidance to $1.0 - $1.2 billion in aggregate
- Assuming the $1.1 billion midpoint of expected dispositions, approximately $425 million is expected to be returned to shareholders in the form of a special dividend, with the remaining $675 million used to retire debt and pre-fund in entirety the $245 million remaining to be spent on our current development pipeline
- 2016 estimated FFO per share revised to $4.55 at the midpoint vs. $4.85 prior as a result of the Company's increased disposition volume
- 2016 same store NOI revised to 4.25% at the midpoint from 4.5% prior driven by higher growth rates on both the completed and planned dispositions
Funds from Operations (“FFO”), Adjusted Funds from Operations (“AFFO”), and Net Income Attributable to Common Shareholders (“EPS”) for the three months ended March 31, 2016 are detailed below. A reconciliation of EPS to FFO is included in the financial tables accompanying this press release.
| Three Months Ended | Quarterly | Sequential | ||||||||||||||||
| March 31 | Growth | Growth | ||||||||||||||||
| Per Diluted Share | 2016 | 2015 | Same Property Results | 1Q16 vs. 1Q15 | 1Q16 vs. 4Q15 | |||||||||||||
| FFO | $1.20 | $1.08 | Revenues | 4.9% | 0.6% | |||||||||||||
| AFFO | $1.10 | $0.96 | Expenses | 2.3% | 2.0% | |||||||||||||
| EPS | $0.46 | $1.27 | Net Operating Income ("NOI") | 6.3% | (0.2)% | |||||||||||||
| Same Property Results | 1Q16 | 1Q15 | 4Q15 | ||||||
| Occupancy | 95.4% | 95.5% | 95.5% | ||||||
The Company defines same property communities as communities owned and stabilized as of January 1, 2015, excluding properties held for sale. A reconciliation of net income to NOI and same property NOI is included in the financial tables accompanying this press release.
Development Activity
Construction was completed during the quarter at Camden Chandler located in Chandler, AZ. Lease-up was completed at Camden Flatirons in Denver, CO and Camden Southline (JV) in Charlotte, NC.
Development Communities - Construction Completed and Projects in Lease-Up ($ in millions) | ||||||||||||||||||||
| Total | Total | CPT % | % Leased | |||||||||||||||||
| Community Name | Location | Units | Cost | Owned | as of 4/24/2016 | |||||||||||||||
| Camden Paces | Atlanta, GA | 379 | $117.4 | 100% | 89% | |||||||||||||||
| Camden Glendale | Glendale, CA | 303 | 113.3 | 100% | 77% | |||||||||||||||
| Camden Chandler | Chandler, AZ | 380 | 67.5 | 100% | 71% | |||||||||||||||
| TOTAL | 1,062 | $298.2 | ||||||||||||||||||
Development Communities - Construction Ongoing ($ in millions) | ||||||||||||||||||||
| Total | Total | CPT % | % Leased | |||||||||||||||||
| Community Name | Location | Units | Budget | Owned | as of 4/24/2016 | |||||||||||||||
| Camden Gallery | Charlotte, NC | 323 | $58.0 | 100% | 30% | |||||||||||||||
| Camden Victory Park | Dallas, TX | 423 | 82.0 | 100% | 20% | |||||||||||||||
| The Camden | Los Angeles, CA | 287 | 145.0 | 100% | 16% | |||||||||||||||
| Camden Lincoln Station | Denver, CO | 267 | 56.0 | 100% | ||||||||||||||||
| Camden NoMa II | Washington, DC | 405 | 115.0 | 100% | ||||||||||||||||
| Camden Shady Grove | Rockville, MD | 457 | 116.0 | 100% | ||||||||||||||||
| Camden McGowen Station | Houston, TX | 315 | 90.0 | 100% | ||||||||||||||||
| TOTAL | 2,477 | $662.0 | ||||||||||||||||||
Acquisition/Disposition Activity
During the quarter the Company acquired 2.0 acres of land in Charlotte, NC for $4.1 million and sold 6.3 acres of land in Tampa, FL for $2.2 million. Subsequent to quarter-end, Camden sold its Las Vegas portfolio, comprised of 15 operating communities with 4,918 apartment homes, a retail center, and approximately 19.6 acres of undeveloped land for $630 million. The Company is also marketing several additional communities for sale and expects these future sales to total $400 to $600 million.
Earnings Guidance
Camden updated its earnings guidance for 2016 based on its current and expected views of the apartment market and general economic conditions, and its revised expectations for $1.0 to $1.2 billion of dispositions during 2016.
Guidance for second quarter 2016 and full-year 2016 is detailed below. | ||||||||
| Per Diluted Share | 2Q16 | 2016 | ||||||
| FFO | $1.13 - $1.17 | $4.45 - $4.65 | ||||||
| EPS | $4.60 - $4.64 | $5.62 - $5.82 | ||||||
| Same Property Growth | 2016 Range | 2016 Midpoint | ||||||
| Revenues | 3.60% - 4.60% | 4.10% | ||||||
| Expenses | 3.25% - 4.25% | 3.75% | ||||||
| NOI | 3.50% - 5.00% | 4.25% | ||||||
Camden intends to update its earnings guidance to the market on a quarterly basis. Additional information on the Company’s 2016 financial outlook and a reconciliation of expected EPS to expected FFO are included in the financial tables accompanying this press release.
Special Dividend
Camden anticipates declaring a special dividend in 2016. Provided all planned dispositions are completed as forecasted, the special dividend is anticipated to total $4.25 to $5.25 per share. The company expects to pay approximately 90% of the dividend in the third quarter of 2016, and the remainder in early 2017.
Conference Call
The Company will hold a conference call on Friday, April 29, 2016 at 11:00 a.m. Central Time to review its first quarter 2016 results and discuss its outlook for future performance. To participate in the call, please dial (888) 317-6003 (Domestic) or (412) 317-6061 (International) by 10:50 a.m. Central Time and enter passcode: 9433137, or join the live webcast of the conference call by accessing the Investors section of the Company’s website at camdenliving.com. 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 (800) 922-6336 or (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, 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 engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns interests in and operates 158 properties containing 55,254 apartment homes across the United States. Upon completion of 7 properties under development, the Company’s portfolio will increase to 57,731 apartment homes in 165 properties. Camden was recently named by FORTUNE® Magazine for the ninth consecutive year as one of the “100 Best Companies to Work For” in America, ranking #9.
For additional information, please contact Camden’s Investor Relations Department at (800) 922-6336 or (713) 354-2787 or access our website at camdenliving.com.
CAMDEN | OPERATING RESULTS (In thousands, except per share amounts) | |||||||||||
(Unaudited) | ||||||||||||
| Three Months Ended March 31, | ||||||||||||
| 2016 | 2015 | |||||||||||
OPERATING DATA | ||||||||||||
| Property revenues | ||||||||||||
| Rental revenues | $ | 187,119 | $ | 175,220 | ||||||||
| Other property revenues | 30,476 | 26,388 | ||||||||||
| Total property revenues | 217,595 | 201,608 | ||||||||||
| Property expenses | ||||||||||||
| Property operating and maintenance | 50,269 | 48,851 | ||||||||||
| Real estate taxes | 26,880 | 24,677 | ||||||||||
| Total property expenses | 77,149 | 73,528 | ||||||||||
| Non-property income | ||||||||||||
| Fee and asset management | 1,765 | 1,563 | ||||||||||
| Interest and other income | 224 | 60 | ||||||||||
| Income on deferred compensation plans | 63 | 1,864 | ||||||||||
| Total non-property income | 2,052 | 3,487 | ||||||||||
| Other expenses | ||||||||||||
| Property management | 7,140 | 5,792 | ||||||||||
| Fee and asset management | 952 | 1,076 | ||||||||||
| General and administrative | 12,223 | 9,748 | ||||||||||
| Interest (a) | 23,790 | 25,052 | ||||||||||
| Depreciation and amortization | 62,091 | 57,984 | ||||||||||
| Expense on deferred compensation plans | 63 | 1,864 | ||||||||||
| Total other expenses | 106,259 | 101,516 | ||||||||||
| Gain on sale of operating properties, including land | 443 | 85,192 | ||||||||||
| Equity in income of joint ventures | 1,497 | 1,382 | ||||||||||
| Income from continuing operations before income taxes | 38,179 | 116,625 | ||||||||||
| Income tax expense | (315 | ) | (429 | ) | ||||||||
| Income from continuing operations | 37,864 | 116,196 | ||||||||||
| Income from discontinued operations | 5,076 | 4,869 | ||||||||||
| Net income | 42,940 | 121,065 | ||||||||||
| Less income allocated to non-controlling interests from continuing operations | (1,210 | ) | (5,466 | ) | ||||||||
| Net income attributable to common shareholders | $ | 41,730 | $ | 115,599 | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||
| Net income | $ | 42,940 | $ | 121,065 | ||||||||
| Other comprehensive income | ||||||||||||
| Reclassification of net loss on cash flow hedging activities, prior service cost and net loss on post retirement obligation | 32 | 37 | ||||||||||
| Comprehensive income | 42,972 | 121,102 | ||||||||||
| Less income allocated to non-controlling interests from continuing operations | (1,210 | ) | (5,466 | ) | ||||||||
| Comprehensive income attributable to common shareholders | $ | 41,762 | $ | 115,636 | ||||||||
PER SHARE DATA | ||||||||||||
| Total earnings per common share - basic | $ | 0.46 | $ | 1.29 | ||||||||
| Total earnings per common share - diluted | 0.46 | 1.27 | ||||||||||
| Earnings per share from continuing operations - basic | 0.41 | 1.23 | ||||||||||
| Earnings per share from continuing operations - diluted | 0.41 | 1.22 | ||||||||||
| Weighted average number of common shares outstanding: | ||||||||||||
| Basic | 89,344 | 88,987 | ||||||||||
| Diluted | 90,509 | 90,464 | ||||||||||
(a) Prior period has been changed to reflect the adoption of ASU 2015-03 (as supplemented by ASU 2015-15) at December 31, 2015, which required retrospective application.
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 March 31, | ||||||||||||
| 2016 | 2015 | |||||||||||
FUNDS FROM OPERATIONS | ||||||||||||
| Net income attributable to common shareholders | $ | 41,730 | $ | 115,599 | ||||||||
| Real estate depreciation and amortization | 60,485 | 56,459 | ||||||||||
| Real estate depreciation from discontinued operations | 4,327 | 3,904 | ||||||||||
| Adjustments for unconsolidated joint ventures | 2,358 | 2,245 | ||||||||||
| Income allocated to non-controlling interests | 1,210 | 5,466 | ||||||||||
| Gain on sale of operating properties, net of tax | - | (85,145 | ) | |||||||||
| Funds from operations | $ | 110,110 | $ | 98,528 | ||||||||
| Less: recurring capitalized expenditures (a) | (9,294 | ) | (10,644 | ) | ||||||||
| Adjusted funds from operations - diluted | $ | 100,816 | $ | 87,884 | ||||||||
PER SHARE DATA | ||||||||||||
| Funds from operations - diluted | $ | 1.20 | $ | 1.08 | ||||||||
| Adjusted funds from operations - diluted | 1.10 | 0.96 | ||||||||||
| Distributions declared per common share | 0.75 | 0.70 | ||||||||||
| Weighted average number of common shares outstanding: | ||||||||||||
| FFO/AFFO - diluted | 91,593 | 91,275 | ||||||||||
PROPERTY DATA | ||||||||||||
| Total operating properties (end of period) (b) | 173 | 168 | ||||||||||
| Total operating apartment homes in operating properties (end of period) (b) | 60,172 | 58,446 | ||||||||||
| Total operating apartment homes (weighted average) | 52,552 | 51,558 | ||||||||||
| Total operating apartment homes - excluding discontinued operations (weighted average) | 47,634 | 46,640 | ||||||||||
(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.
Note: Please refer to the following pages for definitions and reconciliations of all non-GAAP financial measures presented in this document.
CAMDEN | BALANCE SHEET (In thousands) | |||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
| Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||
| Real estate assets, at cost | ||||||||||||||||||||||||||
| Land | $ | 998,519 | $ | 989,247 | $ | 990,035 | $ | 975,211 | $ | 953,246 | ||||||||||||||||
| Buildings and improvements | 5,978,843 | 5,911,432 | 5,890,751 | 5,769,476 | 5,618,341 | |||||||||||||||||||||
| 6,977,362 | 6,900,679 | 6,880,786 | 6,744,687 | 6,571,587 | ||||||||||||||||||||||
| Accumulated depreciation | (1,841,107 | ) | (1,780,694 | ) | (1,730,929 | ) | (1,671,189 | ) | (1,613,193 | ) | ||||||||||||||||
| Net operating real estate assets | 5,136,255 | 5,119,985 | 5,149,857 | 5,073,498 | 4,958,394 | |||||||||||||||||||||
| Properties under development, including land (a) | 489,730 | 486,918 | 439,777 | 484,663 | 515,743 | |||||||||||||||||||||
| Investments in joint ventures | 32,568 | 33,698 | 34,705 | 35,731 | 36,526 | |||||||||||||||||||||
| Properties held for sale (a) | 238,417 | 239,063 | 237,635 | 238,640 | 239,031 | |||||||||||||||||||||
| Total real estate assets | 5,896,970 | 5,879,664 | 5,861,974 | 5,832,532 | 5,749,694 | |||||||||||||||||||||
| Accounts receivable – affiliates | 24,011 | 25,100 | 25,053 | 25,855 | 25,652 | |||||||||||||||||||||
| Other assets, net (b) | 107,161 | 116,260 | 118,985 | 108,220 | 109,937 | |||||||||||||||||||||
| Cash and cash equivalents | 6,935 | 10,617 | 10,375 | 16,508 | 174,353 | |||||||||||||||||||||
| Restricted cash | 5,378 | 5,971 | 6,126 | 5,791 | 5,034 | |||||||||||||||||||||
| Total assets | $ | 6,040,455 | $ | 6,037,612 | $ | 6,022,513 | $ | 5,988,906 | $ | 6,064,670 | ||||||||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||
| Notes payable | ||||||||||||||||||||||||||
| Unsecured | $ | 1,866,502 | $ | 1,824,930 | $ | 1,803,360 | $ | 1,761,793 | $ | 1,829,146 | ||||||||||||||||
| Secured | 899,315 | 899,757 | 900,472 | 901,032 | 901,582 | |||||||||||||||||||||
| Accounts payable and accrued expenses | 140,991 | 133,353 | 131,532 | 128,532 | 134,438 | |||||||||||||||||||||
| Accrued real estate taxes | 25,499 | 45,223 | 57,642 | 43,905 | 23,269 | |||||||||||||||||||||
| Distributions payable | 69,020 | 64,275 | 64,276 | 64,253 | 64,261 | |||||||||||||||||||||
| Other liabilities (c) | 86,423 | 97,814 | 96,679 | 100,515 | 102,163 | |||||||||||||||||||||
| Total liabilities | 3,087,750 | 3,065,352 | 3,053,961 | 3,000,030 | 3,054,859 | |||||||||||||||||||||
| Commitments and contingencies | ||||||||||||||||||||||||||
| Non-qualified deferred compensation share awards | 88,550 | 79,364 | 72,316 | 69,791 | 69,902 | |||||||||||||||||||||
| Equity | ||||||||||||||||||||||||||
| Common shares of beneficial interest | 975 | 976 | 976 | 976 | 976 | |||||||||||||||||||||
| Additional paid-in capital | 3,658,372 | 3,662,864 | 3,660,482 | 3,657,537 | 3,656,105 | |||||||||||||||||||||
| Distributions in excess of net income attributable to common shareholders | (491,275 | ) | (458,577 | ) | (452,257 | ) | (426,614 | ) | (403,518 | ) | ||||||||||||||||
| Treasury shares, at cost | (378,032 | ) | (386,793 | ) | (387,114 | ) | (387,172 | ) | (388,181 | ) | ||||||||||||||||
| Accumulated other comprehensive loss (d) | (1,881 | ) | (1,913 | ) | (2,307 | ) | (2,345 | ) | (2,382 | ) | ||||||||||||||||
| Total common equity | 2,788,159 | 2,816,557 | 2,819,780 | 2,842,382 | 2,863,000 | |||||||||||||||||||||
| Non-controlling interests | 75,996 | 76,339 | 76,456 | 76,703 | 76,909 | |||||||||||||||||||||
| Total equity | 2,864,155 | 2,892,896 | 2,896,236 | 2,919,085 | 2,939,909 | |||||||||||||||||||||
| Total liabilities and equity | $ | 6,040,455 | $ | 6,037,612 | $ | 6,022,513 | $ | 5,988,906 | $ | 6,064,670 | ||||||||||||||||
| (a) All prior periods presented have been changed to present the 15 operating properties, 19.6 acres of land, and retail center located in Las Vegas, Nevada, which were classified as held for sale at March 31, 2016 and subsequently sold on April 26, 2016. (See page 18 for additional information relating to this sale). | ||||||||||||||||||||||||||
(b) Includes net deferred charges of: | $ | 2,600 | $ | 2,851 | $ | 3,077 | $ | 59 | $ | 43 | ||||||||||||||||
(c) Includes deferred revenues of: | $ | 1,797 | $ | 1,768 | $ | 1,918 | $ | 843 | $ | 1,728 | ||||||||||||||||
(d) Represents the unrealized net loss and unamortized prior service costs on post retirement obligation, and unrealized 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 gains (or losses) associated with previously depreciated operating properties, real estate depreciation and amortization, impairments of depreciable assets, and adjustments for unconsolidated joint ventures. 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 operating properties, and depreciation, FFO can assist in the comparison of the operating performance of a company’s real estate investments between periods or to different companies. A reconciliation of net income attributable to common shareholders to FFO is provided below: | |
Adjusted FFO | |
| In addition to FFO, we compute Adjusted FFO ("AFFO") as a supplemental measure of operating performance. AFFO is calculated utilizing FFO less recurring capital expenditures which are necessary to help preserve the value of and maintain the functionality at our communities. Our definition of recurring capital expenditures may differ from other REITs, and there can be no assurance our basis for computing this measure is comparable to other REITs. A reconciliation of FFO to AFFO is provided below: | |
| Three Months Ended March 31, | ||||||||||||||||||||
| 2016 | 2015 | |||||||||||||||||||
| Net income attributable to common shareholders | $ | 41,730 | $ | 115,599 | ||||||||||||||||
| Real estate depreciation and amortization | 60,485 | 56,459 | ||||||||||||||||||
| Real estate depreciation from discontinued operations | 4,327 | 3,904 | ||||||||||||||||||
| Adjustments for unconsolidated joint ventures | 2,358 | 2,245 | ||||||||||||||||||
| Income allocated to non-controlling interests | 1,210 | 5,466 | ||||||||||||||||||
| Gain on sale of operating properties, net of tax | - | (85,145 | ) | |||||||||||||||||
| Funds from operations | $ | 110,110 | $ | 98,528 | ||||||||||||||||
| Less: recurring capitalized expenditures | (9,294 | ) | (10,644 | ) | ||||||||||||||||
| Adjusted funds from operations | $ | 100,816 | $ | 87,884 | ||||||||||||||||
| Weighted average number of common shares outstanding: | ||||||||||||||||||||
| EPS diluted | 90,509 | 90,464 | ||||||||||||||||||
| FFO/AFFO diluted | 91,593 | 91,275 | ||||||||||||||||||
| Total earnings per common share - diluted | $ | 0.46 | $ | 1.27 | ||||||||||||||||
| FFO per common share - diluted | $ | 1.20 | $ | 1.08 | ||||||||||||||||
| AFFO per common share - diluted | $ | 1.10 | $ | 0.96 | ||||||||||||||||
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: | ||||||||||||||||||||
| 2Q16 Range | 2016 Range | |||||||||||||||||||
| Low | High | Low | High | |||||||||||||||||
| Expected earnings per common share - diluted | $ | 4.60 | $ | 4.64 | $ | 5.62 | $ | 5.82 | ||||||||||||
| Expected real estate depreciation and amortization | 0.72 | 0.72 | 2.89 | 2.89 | ||||||||||||||||
| Expected adjustments for unconsolidated joint ventures | 0.02 | 0.02 | 0.10 | 0.10 | ||||||||||||||||
| Expected income allocated to non-controlling interests | 0.01 | 0.01 | 0.06 | 0.06 | ||||||||||||||||
| Estimated (gain) on properties held for sale | (4.22 | ) | (4.22 | ) | (4.22 | ) | (4.22 | ) | ||||||||||||
| Expected FFO per share - diluted | $ | 1.13 | $ | 1.17 | $ | 4.45 | $ | 4.65 | ||||||||||||
Note: This table contains forward-looking statements. Please see the 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 total property income less property operating and maintenance expenses less real estate taxes. The Company considers NOI to be an appropriate supplemental measure of operating performance to net income attributable to common shareholders because it reflects the operating performance of our communities without allocation of corporate level property management overhead or general and administrative costs. A reconciliation of net income attributable to common shareholders to net operating income is provided below: | ||||||||
| Three months ended March 31, | ||||||||
| 2016 | 2015 | |||||||
| Net income | $ | 42,940 | $ | 121,065 | ||||
| Less: Fee and asset management | (1,765 | ) | (1,563 | ) | ||||
| Less: Interest and other income | (224 | ) | (60 | ) | ||||
| Less: Income on deferred compensation plans | (63 | ) | (1,864 | ) | ||||
| Plus: Property management | 7,140 | 5,792 | ||||||
| Plus: Fee and asset management | 952 | 1,076 | ||||||
| Plus: General and administrative | 12,223 | 9,748 | ||||||
| Plus: Interest | 23,790 | 25,052 | ||||||
| Plus: Depreciation and amortization | 62,091 | 57,984 | ||||||
| Plus: Expense on deferred compensation plans | 63 | 1,864 | ||||||
| Less: Gain on sale of operating properties, including land | (443 | ) | (85,192 | ) | ||||
| Less: Equity in income of joint ventures | (1,497 | ) | (1,382 | ) | ||||
| Plus: Income tax expense | 315 | 429 | ||||||
| Less: Income from discontinued operations | (5,076 | ) | (4,869 | ) | ||||
| Net Operating Income (NOI) | $ | 140,446 | $ | 128,080 | ||||
| "Same Property" Communities | $ | 124,968 | $ | 117,511 | ||||
| Non-"Same Property" Communities | 11,899 | 8,470 | ||||||
| Development and Lease-Up Communities | 2,734 | 343 | ||||||
| Dispositions/Other | 845 | 1,756 | ||||||
| Net Operating Income (NOI) | $ | 140,446 | $ | 128,080 | ||||
EBITDA 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, net of tax, and income (loss) allocated to non-controlling interests. The Company considers 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. A reconciliation of net income attributable to common shareholders to EBITDA is provided below: | ||||||||
| Three months ended March 31, | ||||||||
| 2016 | 2015 | |||||||
| Net income attributable to common shareholders | $ | 41,730 | $ | 115,599 | ||||
| Plus: Interest | 23,790 | 25,052 | ||||||
| Plus: Depreciation and amortization | 62,091 | 57,984 | ||||||
| Plus: Income allocated to non-controlling interests from continuing operations | 1,210 | 5,466 | ||||||
| Plus: Income tax expense | 315 | 429 | ||||||
| Plus: Real estate depreciation from discontinued operations | 4,327 | 3,904 | ||||||
| Less: Gain on sale of operating properties, including land | (443 | ) | (85,192 | ) | ||||
| Less: Equity in income of joint ventures | (1,497 | ) | (1,382 | ) | ||||
| EBITDA | $ | 131,523 | $ | 121,860 | ||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160428006892/en/
Contacts:
Kim Callahan, 713-354-2549
