Camden Property Trust Announces Second Quarter 2012 Operating Results

Camden Property Trust (NYSE: CPT) today announced operating results for the three and six months ended June 30, 2012.

Funds From Operations (“FFO”)

FFO for the second quarter of 2012 totaled $0.89 per diluted share or $76.7 million, as compared to $0.40 per diluted share or $30.4 million for the same period in 2011. FFO for the three months ended June 30, 2011 included: a $0.40 per diluted share impact related to a $29.8 million loss on the discontinuation of a hedging relationship of an interest rate swap and $0.5 million write-off of unamortized loan costs related to the payoff of a term loan; and a $4.7 million or $0.06 per diluted share gain on sale of undeveloped land.

FFO for the six months ended June 30, 2012 totaled $1.72 per diluted share or $145.3 million, as compared to $1.12 per diluted share or $84.5 million for the same period in 2011. FFO for the six months ended June 30, 2012 included a $2.1 million or $0.02 per diluted share charge related to the redemption of perpetual preferred operating partnership units. FFO for the six months ended June 30, 2011 included: a $0.40 per diluted share impact related to a $29.8 million loss on discontinuation of a hedging relationship of an interest rate swap and $0.5 million write-off of unamortized loan costs related to the payoff of a term loan; a $4.7 million or $0.06 per diluted share gain on sale of undeveloped land; a net $3.3 million or $0.04 per diluted share impact related to the sale of an available-for-sale investment; and a $2.1 million or $0.03 per diluted share impact for General & Administrative (“G&A”) costs related to a one-time bonus awarded to all non-executive employees.

Net Income Attributable to Common Shareholders (“EPS”)

The Company reported EPS of $21.8 million or $0.26 per diluted share for the second quarter of 2012, as compared to a net loss of $16.6 million or $0.23 per diluted share for the same period in 2011. EPS for the three months ended June 30, 2011 included: a $0.42 per diluted share impact related to a $29.8 million loss on discontinuation of a hedging relationship of an interest rate swap and $0.5 million write-off of unamortized loan costs related to the payoff of a term loan; and a $4.7 million or $0.07 per diluted share gain on sale of undeveloped land.

For the six months ended June 30, 2012, the Company reported EPS of $110.5 million or $1.32 per diluted share, as compared to a net loss of $9.3 million or $0.13 per diluted share for the same period in 2011. EPS for the six months ended June 30, 2012 included: a $40.2 million or $0.48 per diluted share impact related to the gain on acquisition of the controlling interest in twelve joint ventures; a $32.5 million or $0.39 per diluted share impact related to the gain on sale of discontinued operations; and, a $2.1 million or $0.02 per diluted share charge related to the redemption of perpetual preferred operating partnership units. EPS for the six months ended June 30, 2011 included: a $0.42 per diluted share impact related to a $29.8 million loss on discontinuation of a hedging relationship of an interest rate swap and $0.5 million write-off of unamortized loan costs related to the payoff of a term loan; a $4.7 million or $0.07 per diluted share gain on sale of undeveloped land; a net $3.3 million or $0.05 per diluted share impact related to gain on sale of an available-for-sale investment; a $2.1 million or $0.03 per diluted share impact for G&A costs related to a one-time bonus awarded to all non-executive employees; and a $1.1 million or $0.02 per diluted share impact from gain on sale of three joint venture interests.

A reconciliation of net income attributable to common shareholders to FFO is included in the financial tables accompanying this press release.

Same Property Results

For the 47,724 apartment homes included in consolidated same property results, second quarter 2012 same property NOI increased 8.6% compared to the second quarter of 2011, with revenues increasing 6.1% and expenses increasing 2.1%. On a sequential basis, second quarter 2012 same property NOI increased 2.4% compared to the first quarter of 2012, with revenues increasing 2.2% and expenses increasing 1.9% compared to the prior quarter. On a year-to-date basis, 2012 same property NOI increased 9.1%, with revenues increasing 6.4% and expenses increasing 2.3% compared to the same period in 2011. Same property physical occupancy levels for the portfolio averaged 95.3% during the second quarter of 2012, compared to 94.9% in both the second quarter of 2011 and first quarter of 2012.

The Company defines same property communities as communities owned and stabilized as of January 1, 2011, excluding properties held for sale and communities under major redevelopment. A reconciliation of net income attributable to common shareholders to net operating income and same property net operating income is included in the financial tables accompanying this press release.

Acquisition Activity

Camden acquired one multifamily community with 477 apartment homes located in Dallas, TX during the quarter for approximately $76.0 million. Subsequent to quarter-end, the Company acquired a multifamily community with 223 apartment homes located in Atlanta, GA for approximately $25.3 million.

During the quarter the Company also acquired 4.7 acres of land located in Dallas, TX for future development of a multifamily community.

Development Activity

Construction was completed during the quarter at Camden Montague, a 192 apartment home project with a current cost of $20 million in Tampa, FL, which began leasing in February 2012 and is currently 99% leased. Lease-ups continued during the quarter at three completed communities: Camden LaVina, a $56 million project with 420 apartment homes in Orlando, FL, which is currently 88% leased; Camden Summerfield II, a 187 apartment home project with a current cost of $25 million in Landover, MD, which is currently 98% leased; and Camden Royal Oaks II, a $13 million project with 104 apartment homes in Houston, TX, which is currently 39% leased. Lease-up activity is also underway at two communities which are currently under construction: Camden Westchase Park, a $52 million project with 348 apartment homes in Tampa, FL which is currently 59% leased; and Camden Town Square, a $66 million project with 438 apartment homes in Orlando, FL which began leasing during the quarter and is currently 41% leased.

Construction began during the quarter at Camden Lamar Heights in Austin, TX, a $47 million project with 314 apartment homes, and continued at two additional wholly-owned development communities: Camden City Centre II in Houston, TX, a $36 million project with 268 apartment homes, and Camden NOMA in Washington, DC, a $110 million project with 320 apartment homes. Construction also continued during the quarter on two joint venture communities: Camden Amber Oaks II in Austin, TX, a $25 million project with 244 apartment homes, which is currently 59% leased, and Camden South Capitol in Washington, DC, an $88 million project with 276 apartment homes.

Equity Issuance

During the second quarter, Camden issued 2,572,609 common shares through its at-the-market (“ATM”) share offering programs at an average price of $66.55 per share, for total net consideration of approximately $168.5 million. Subsequent to quarter-end, the Company issued an additional 938,380 common shares through its ATM program at an average price of $69.34 per share, for total net consideration of approximately $64.1 million. Year-to-date through July 2012, Camden has issued 4,215,234 common shares through its ATM programs at an average price of $66.73 per share, for total net consideration of approximately $276.9 million.

Earnings Guidance

Camden updated its earnings guidance for 2012 based on its current and expected views of the apartment market and general economic conditions. Full-year 2012 FFO is expected to be $3.50 to $3.58 per diluted share, and full-year 2012 EPS is expected to be $1.94 to $2.02 per diluted share. Third quarter 2012 earnings guidance is $0.88 to $0.92 per diluted share for FFO and $0.30 to $0.34 per diluted share for EPS. Guidance for EPS excludes potential future gains on the sale of properties. Camden intends to update its earnings guidance to the market on a quarterly basis.

The Company’s 2012 earnings guidance is based on projections of same property revenue growth between 5.5% and 6.5%, expense growth between 2.5% and 3.0%, and NOI growth between 7.5% and 8.5%. Additional information on the Company’s 2012 financial outlook and a reconciliation of expected net income attributable to common shareholders to expected FFO are included in the financial tables accompanying this press release.

Conference Call

The Company will hold a conference call on Friday, August 3, 2012 at 11:00 a.m. Central Time to review its second quarter 2012 results and discuss its outlook for future performance. To participate in the call, please dial (866) 843-0890 (Domestic) or (412) 317-9250 (International) by 10:50 a.m. Central Time and enter passcode: 7289205, or join the live webcast of the conference call by accessing the Investor Relations section of the Company’s website at camdenliving.com. Supplemental financial information is available in the Investor Relations section of the Company’s website under Earnings Releases or by calling Camden’s Investor Relations Department at (800) 922-6336.

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.

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 (800) 922-6336 or (713) 354-2787 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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