Camden Property Trust Announces Second Quarter 2012 Operating Results

About Camden

Camden Property Trust, an S&P 400 Company, is a real estate company engaged in the ownership, development, acquisition, management and disposition of multifamily apartment communities. Camden owns interests in and operates 200 properties containing 67,917 apartment homes across the United States. Upon completion of seven properties under development, the Company's portfolio will increase to 70,125 apartment homes in 207 properties. Camden was recently named by FORTUNE® Magazine for the fifth consecutive year as one of the “100 Best Companies to Work For” in America, ranking #7.

For additional information, please contact Camden’s Investor Relations Department at [phone] or [phone] or access our website at www.camdenliving.com.

CAMDEN						OPERATING RESULTS
(In thousands, except per share and property data amounts)
(Unaudited)						Three Months Ended												Six Months Ended
						June 30,												June 30,
OPERATING DATA						2012						2011						2012						2011
Property revenues
Rental revenues						$	159,318					$	138,167					$	313,037					$	274,002
Other property revenues							26,727						23,235						51,659						45,002
Total property revenues							186,045						161,402						364,696						319,004
Property expenses
Property operating and maintenance							51,119						46,232						100,338						91,038
Real estate taxes							19,338						17,558						37,709						34,902
Total property expenses							70,457						63,790						138,047						125,940
Non-property income
Fee and asset management							3,608						2,471						6,531						4,309
Interest and other income (loss)							(65	)					86						(753	)					4,857
Income (loss) on deferred compensation plans							(2,185	)					1,375						5,601						7,329
Total non-property income							1,358						3,932						11,379						16,495
Other expenses
Property management							4,851						5,109						10,135						10,428
Fee and asset management							1,444						1,670						3,187						2,890
General and administrative							9,730						8,032						18,409						17,820
Interest							26,247						28,381						52,930						58,118
Depreciation and amortization							53,310						44,754						103,428						90,605
Amortization of deferred financing costs							900						1,890						1,812						3,417
Expense (benefit) on deferred compensation plans							(2,185	)					1,375						5,601						7,329
Total other expenses							94,297						91,211						195,502						190,607
Gain on acquisition of controlling interests in joint ventures							-						-						40,191						-
Gain on sale of properties, including land							-						4,748						-						4,748
Gain on sale of unconsolidated joint venture interests							-						-						-						1,136
Loss on discontinuation of hedging relationship							-						(29,791	)					-						(29,791	)
Equity in income of joint ventures							632						16						998						390
Income (loss) from continuing operations before income taxes							23,281						(14,694	)					83,715						(4,565	)
Income tax expense - current							(434	)					(256	)					(658	)					(1,576	)
Income (loss) from continuing operations							22,847						(14,950	)					83,057						(6,141	)
Income from discontinued operations							-						895						353						1,687
Gain on sale of discontinued operations, net of tax							-						-						32,541						-
Net income (loss)							22,847						(14,055	)					115,951						(4,454	)
Less income allocated to noncontrolling interests from continuing operations							(1,084	)					(781	)					(1,909	)					(1,337	)
Less income, including gain on sale, allocated to noncontrolling interests from discontinued operations							-						(11	)					(670	)					(20	)
Less income allocated to perpetual preferred units							-						(1,750	)					(776	)					(3,500	)
Less write off of original issuance costs of redeemed perpetual preferred units							-						-						(2,075	)					-
Net income (loss) attributable to common shareholders						$	21,763						($16,597	)				$	110,521						($9,311	)
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income (loss)						$	22,847						($14,055	)				$	115,951						($4,454	)
Other comprehensive income
Unrealized loss on cash flow hedging activities							-						(2,189	)					-						(2,692	)
Reclassification of net losses on cash flow hedging activities							-						33,786						-						39,552
Reclassification of gain on available-for-sale investment to earnings, net of tax							-						-						-						(3,309	)
Reclassification of prior service cost on post retirement obligations							8						-						16						-
Comprehensive income							22,855						17,542						115,967						29,097
Less income allocated to noncontrolling interests from continuing operations							(1,084	)					(781	)					(1,909	)					(1,337	)
Less income, including gain on sale, allocated to noncontrolling interests from discontinued operations							-						(11	)					(670	)					(20	)
Less income allocated to perpetual preferred units							-						(1,750	)					(776	)					(3,500	)
Less write off of original issuance costs of redeemed perpetual preferred units							-						-						(2,075	)					-
Comprehensive income attributable to common shareholders						$	21,771					$	15,000					$	110,537					$	24,240
PER SHARE DATA
Net income (loss) attributable to common shareholders - basic						$	0.26						($0.23	)				$	1.34						($0.13	)
Net income (loss) attributable to common shareholders - diluted							0.26						(0.23	)					1.32						(0.13	)
Income (loss) from continuing operations attributable to common shareholders - basic							0.26						(0.24	)					0.95						(0.15	)
Income (loss) from continuing operations attributable to common shareholders - diluted							0.26						(0.24	)					0.94						(0.15	)
Weighted average number of common and
common equivalent shares outstanding:
Basic							83,223						72,343						81,554						72,126
Diluted							83,846						72,343						84,461						72,126
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													Six Months Ended
					June 30,													June 30,
FUNDS FROM OPERATIONS					2012						2011							2012							2011
Net income (loss) attributable to common shareholders (a)					$	21,763						($16,597	)					$	110,521							($9,311	)
Real estate depreciation from continuing operations						52,197						43,505							101,206							88,108
Real estate depreciation and amortization from discontinued operations						-						977							186							1,948
Adjustments for unconsolidated joint ventures						2,038						1,813							4,313							3,819
Income allocated to noncontrolling interests						709						653							1,802							1,036
(Gain) on acquisition of controlling interests in joint ventures						-						-							(40,191	)						-
(Gain) on sale of discontinued operations, net of tax						-						-							(32,541	)						-
(Gain) on sale of unconsolidated joint venture interests						-						-							-							(1,136	)
Funds from operations - diluted					$	76,707					$	30,351						$	145,296						$	84,464
PER SHARE DATA
Funds from operations - diluted					$	0.89					$	0.40						$	1.72						$	1.12
Cash distributions						0.56						0.49							1.12							0.98
Weighted average number of common and
common equivalent shares outstanding:
FFO - diluted						86,067						75,523							84,461							75,273
PROPERTY DATA
Total operating properties (end of period) (b)						199						196							199							196
Total operating apartment homes in operating properties (end of period) (b)						67,694						67,212							67,694							67,212
Total operating apartment homes (weighted average)						53,720						50,883							53,338							50,849
Total operating apartment homes - excluding discontinued operations (weighted average)						53,720						49,062							53,048							49,061

(a)				Includes a $29.8 million charge related to a loss on the discontinuation of a hedging relationship for the three and six months ended June 30, 2011.
(b)				Includes joint ventures.

CAMDEN					BALANCE SHEETS
(In thousands)
(Unaudited)					Jun 30,							Mar 31,							Dec 31,							Sep 30,							Jun 30,
					2012							2012							2011							2011							2011
ASSETS
Real estate assets, at cost
Land					$	893,910						$	868,964						$	768,016						$	766,302						$	760,397
Buildings and improvements						5,203,675							5,068,560							4,751,654							4,758,397							4,711,552
						6,097,585							5,937,524							5,519,670							5,524,699							5,471,949
Accumulated depreciation						(1,505,862	)						(1,458,451	)						(1,432,799	)						(1,421,867	)						(1,378,630	)
Net operating real estate assets						4,591,723							4,479,073							4,086,871							4,102,832							4,093,319
Properties under development, including land						297,712							301,282							299,870							274,201							237,549
Investments in joint ventures						47,776							49,436							44,844							37,033							39,398
Properties held for sale						-							-							11,131							-							-
Total real estate assets						4,937,211							4,829,791							4,442,716							4,414,066							4,370,266
Accounts receivable - affiliates						29,940							29,742							31,035							31,395							30,401
Other assets, net (a)						88,002							89,706							88,089							87,657							90,346
Cash and cash equivalents						52,126							49,702							55,159							56,099							63,148
Restricted cash						5,295							5,074							5,076							5,357							4,898
Total assets					$	5,112,574						$	5,004,015						$	4,622,075						$	4,594,574						$	4,559,059
LIABILITIES AND EQUITY
Liabilities
Notes payable
Unsecured					$	1,381,152						$	1,380,952						$	1,380,755						$	1,380,560						$	1,380,368
Secured						1,015,260							1,050,154							1,051,357							1,052,544							1,053,699
Accounts payable and accrued expenses						87,041							105,370							93,747							97,613							78,460
Accrued real estate taxes						31,607							17,991							21,883							37,721							27,424
Distributions payable						49,135							47,594							39,364							39,319							38,966
Other liabilities (b)						83,471							90,423							109,276							111,043							123,829
Total liabilities						2,647,666							2,692,484							2,696,382							2,718,800							2,702,746
Commitments and contingencies
Perpetual preferred units						-							-							97,925							97,925							97,925
Equity
Common shares of beneficial interest						945							919							845							839							834
Additional paid-in capital						3,501,354							3,327,961							2,901,024							2,861,139							2,823,690
Distributions in excess of net income attributable to common shareholders						(674,221	)						(648,074	)						(690,466	)						(700,897	)						(676,367	)
Treasury shares, at cost						(430,958	)						(437,215	)						(452,003	)						(452,244	)						(459,134	)
Accumulated other comprehensive income (loss) (c)						(667	)						(675	)						(683	)						201							93
Total common equity						2,396,453							2,242,916							1,758,717							1,709,038							1,689,116
Noncontrolling interests						68,455							68,615							69,051							68,811							69,272
Total equity						2,464,908							2,311,531							1,827,768							1,777,849							1,758,388
Total liabilities and equity					$	5,112,574						$	5,004,015						$	4,622,075						$	4,594,574						$	4,559,059
(a) Includes:
net deferred charges of:					$	14,432						$	15,267						$	16,102						$	16,868						$	14,484
(b) Includes:
deferred revenues of:					$	2,012						$	2,337						$	2,140						$	2,213						$	2,181
distributions in excess of investments in joint ventures of:					$	16,499						$	16,298						$	30,596						$	31,799						$	31,040
fair value adjustment of derivative instruments:					$	5,918						$	11,574						$	16,486						$	22,192						$	27,977
(c) Represents the fair value adjustment of derivative instruments and amortization of prior service costs on post retirement obligations.

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 attributable to
common shares computed in accordance with generally accepted accounting principles (“GAAP”), excluding gains or losses from
depreciable operating property sales, plus real estate depreciation and amortization, and after adjustments for
unconsolidated partnerships and joint ventures. Camden’s definition of diluted FFO also assumes conversion of all dilutive
convertible securities, including minority interests, which are convertible into common equity. The Company considers FFO to
be an appropriate supplemental measure of operating performance because, by excluding gains or losses on dispositions of
operating properties and excluding depreciation, FFO can help one compare the operating performance of a company's real
estate between periods or as compared to different companies. A reconciliation of net income attributable to common
shareholders to FFO is provided below:
							Three Months Ended								Six Months Ended
							June 30,								June 30,
							2012		2011						2012			2011
Net income (loss) attributable to common shareholders (a)							$	21,763		($16,597	)				$	110,521			($9,311	)
Real estate depreciation from continuing operations								52,197		43,505						101,206			88,108
Real estate depreciation and amortization from discontinued operations								-		977						186			1,948
Adjustments for unconsolidated joint ventures								2,038		1,813						4,313			3,819
Income allocated to noncontrolling interests								709		653						1,802			1,036
(Gain) on acquisition of controlling interests in joint ventures								-		-						(40,191	)		-
(Gain) on sale of discontinued operations, net of tax								-		-						(32,541	)		-
(Gain) on sale of unconsolidated joint venture interests								-		-						-			(1,136	)
Funds from operations - diluted							$	76,707	$	30,351					$	145,296		$	84,464
Weighted average number of common and
common equivalent shares outstanding:
EPS diluted								83,846		72,343						84,461			72,126
FFO diluted								86,067		75,523						84,461			75,273
Net income (loss) attributable to common shareholders - diluted							$	0.26		($0.23	)				$	1.32			($0.13	)
FFO per common share - diluted							$	0.89	$	0.40					$	1.72		$	1.12
(a) Includes a $29.8 million charge related to a loss on the discontinuation of a hedging relationship for the three and six months ended June 30, 2011.
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 net income attributable to common shareholders (EPS). A reconciliation of the ranges provided for expected net
income attributable to common shareholders per diluted share to expected FFO per diluted share is provided below:
							3Q12 Range								2012 Range
							Low		High						Low			High
Expected net income attributable to common shareholders per share - diluted							$	0.30	$	0.34					$	1.94		$	2.02
Expected real estate depreciation from continuing operations								0.55		0.55						2.30			2.30
Expected real estate depreciation and amortization from discontinued operations								0.00		0.00						0.00			0.00
Expected adjustments for unconsolidated joint ventures								0.02		0.02						0.10			0.10
Expected income allocated to noncontrolling interests								0.01		0.01						0.04			0.04
Realized (gain) on acquisition of controlling interests in joint ventures								0.00		0.00						(0.49	)		(0.49	)
Realized (gain) on sale of discontinued operations, net of tax								0.00		0.00						(0.39	)		(0.39	)
Expected FFO per share - diluted							$	0.88	$	0.92					$	3.50		$	3.58
Note:  This table contains forward-looking statements. Please see the paragraph regarding forward-looking statements earlier in this document.

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									Six Months Ended
							June 30,									June 30,
							2012			2011						2012			2011
Net income (loss) attributable to common shareholders							$	21,763			($16,597	)				$	110,521			($9,311	)
Less: Fee and asset management income								(3,608	)		(2,471	)					(6,531	)		(4,309	)
Less: Interest and other (income) loss								65			(86	)					753			(4,857	)
Less: Income (loss) on deferred compensation plans								2,185			(1,375	)					(5,601	)		(7,329	)
Plus: Property management expense								4,851			5,109						10,135			10,428
Plus: Fee and asset management expense								1,444			1,670						3,187			2,890
Plus: General and administrative expense								9,730			8,032						18,409			17,820
Plus: Interest expense								26,247			28,381						52,930			58,118
Plus: Depreciation and amortization								53,310			44,754						103,428			90,605
Plus: Amortization of deferred financing costs								900			1,890						1,812			3,417
Plus: Expense (benefit) on deferred compensation plans								(2,185	)		1,375						5,601			7,329
Less: Gain on acquisition of controlling interests in joint ventures								-			-						(40,191	)		-
Less: Gain on sale of properties, including land								-			(4,748	)					-			(4,748	)
Less: Gain on sale of unconsolidated joint venture interests								-			-						-			(1,136	)
Plus: Loss on discontinuation of hedging relationship								-			29,791						-			29,791
Less: Equity in income of joint ventures								(632	)		(16	)					(998	)		(390	)
Plus: Income tax expense - current								434			256						658			1,576
Less: Income from discontinued operations								-			(895	)					(353	)		(1,687	)
Less: Gain on sale of discontinued operations, net of tax								-			-						(32,541	)		-
Plus: Income allocated to noncontrolling interests from continuing operations								1,084			781						1,909			1,337
Plus: Income, including gain on sale, allocated to noncontrolling interests from discontinued operations								-			11						670			20
Plus: Income allocated to perpetual preferred units								-			1,750						776			3,500
Plus: Write off of original issuance costs of redeemed perpetual preferred units								-			-						2,075			-
Net Operating Income (NOI)							$	115,588		$	97,612					$	226,649		$	193,064
"Same Property" Communities							$	103,563		$	95,360					$	204,668		$	187,616
Non-"Same Property" Communities								9,491			2,195						17,940			5,271
Development and Lease-Up Communities								1,536			-						2,216			-
Other								998			57						1,825			177
Net Operating Income (NOI)							$	115,588		$	97,612					$	226,649		$	193,064
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 discontinued operations, net of tax, and income (loss) allocated to noncontrolling 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									Six Months Ended
							June 30,									June 30,
							2012			2011						2012			2011
Net income (loss) attributable to common shareholders							$	21,763			($16,597	)				$	110,521			($9,311	)
Plus: Interest expense								26,247			28,381						52,930			58,118
Plus: Amortization of deferred financing costs								900			1,890						1,812			3,417
Plus: Depreciation and amortization								53,310			44,754						103,428			90,605
Plus: Income allocated to perpetual preferred units								-			1,750						776			3,500
Plus: Write off of original issuance costs on redeemed perpetual preferred units								-			-						2,075			-
Plus: Income, including gain on sale, allocated to noncontrolling interests from discontinued operations								-			11						670			20
Plus: Income allocated to noncontrolling interests from continuing operations								1,084			781						1,909			1,337
Plus: Income tax expense - current								434			256						658			1,576
Plus: Real estate depreciation and amortization from discontinued operations								-			977						186			1,948
Less: Gain on sale of properties, including land								-			(4,748	)					-			(4,748	)
Less: Gain on sale of unconsolidated joint venture interests								-			-						-			(1,136	)
Less: Gain on acquisition of controlling interests in joint ventures								-			-						(40,191	)		-
Less: Equity in income of joint ventures								(632	)		(16	)					(998	)		(390	)
Less: Gain on sale of discontinued operations, net of tax								-			-						(32,541	)		-
Plus: Loss on discontinuation of hedging relationship								-			29,791						-			29,791
EBITDA							$	103,106		$	87,230					$	201,235		$	174,727

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