Joining me today are Rick Campo, Camden’s Chairman and Chief Executive Officer; Keith Oden, President; and Dennis Steen, Chief Financial Officer. Our call today is scheduled for one hour, and as a result, we ask that you limit your questions to two with one follow-up and rejoin the queue if you have additional questions. If we are unable to speak with everyone in the queue today, we’ll be happy to respond to additional questions by phone or e-mail after the call concludes.At this time, I’ll turn the call over to Rick Campo. Richard J. Campo Thanks, Kim, and good morning and afternoon to everyone on the call. Our pre-conference music was chosen today to commemorate the 50 th anniversary of the Beach Boys. I know, we’ve received number of e-mails about the Beach Boys, they maybe a little too old for this crowd on the call, but for some of us the good vibrations are definitely a continuing theme in the multifamily business. We are looking forward to catching the wave of continued strong operating performance in 2012. I want to thank our Camden teams that made our strong 2011 operating performance possible. We ended 2011 strong with same-property revenue increasing 6.7% over the fourth quarter of 2010, and 5.5% for the year, which leads the sector in revenue growth so far. Same-store net operating income increased 8% for the quarter, and 7.1% for the year. We expect 2012 to be a repeat of the strong growth that we had in 2011. Strong macro factors continue to favor our business. On the demand side, falling home prices and tougher mortgage underwriting has kept competition from single-family home limited. Our customers have been doing very well in a slow job growth environment. Nearly, 60% of the jobs created in last two years have gone to people 34 years old and younger. The average income of our residence has increased from $61,000 per year to nearly $67,000 in the last year driving the ratio of rent paid to income down from 18.5% to 18% in a rising rent environment.
Historically, the rent to income ratio across our portfolio has been around 22%. While more young adults are working now, there are still 1.8 million living at home or in roommate situations, most of whom are waiting to move out into apartments.Multifamily supply is increasing from post World War II lows, but it’s now forecast to reach 200,000 units until late 2014. Multifamily demand should continue to exceed supply for at least the next several years supporting strong multifamily operating fundamentals. During 2011, and into January 2012, we took advantage of an attractive acquisition disposition and development environment. We acquired 6,076 apartments in our fund for $590 million, generating double digit cash returns for our partners. We continue to recycle capital through dispositions, and sold 2,800 apartments for $251 million. Our real estate investment and construction team started 2,800 apartments adding $504 million to our development pipeline. After the end of the quarter, we acquired our partner’s interest in 12 properties, 10 of which we developed. We financed the acquisition with 100% equity. The acquisition and equity offering was accretive to earnings, and strength in our balance sheet. Debt-to-EBITDA is now 6.3 times compared to 7.6 times during 2010. We will continue to maintain a strong balance sheet or the debt-to-EBITDA target of around 6 times. We continue to be active in the transactions market, and we’ll be active this year. Our 2012 guidance includes $250 million on balance sheet acquisitions and $250 million of dispositions. We expect to add another $350 million to $450 million to our development pipeline bringing our development pipeline to nearly $1 billion. At this point, I’ll turn the call over to Keith Oden. D. Keith Oden Thanks, Rick. Consistent with prior years, I’m going to use my time on today’s call to review the market conditions we expect in kind of in our four markets in 2012. I’ll address the markets in the order of strength by finding elaborate each one as well as our view as to whether we believe the market is likely to be improving, stable or defining in the year ahead.
Following the market overview, I’ll provide additional details on fourth quarter operations and our 2012 same-property guidance. Starting with an overview of Camden’s markets, we’ll begin in Texas and North Carolina, whose markets received our top five spot this year, and all ranked as an A or A minus.Read the rest of this transcript for free on seekingalpha.com