Camden Property Trust Announces Second Quarter 2013 Operating Results

Camden Property Trust (NYSE: CPT) today announced operating results for the three and six months ended June 30, 2013.

Funds From Operations (“FFO”)

FFO for the second quarter of 2013 totaled $1.02 per diluted share or $91.4 million, as compared to $0.89 per diluted share or $76.7 million for the same period in 2012. FFO for the three months ended June 30, 2013 included: a $3.8 million or $0.04 per diluted share impact from a promoted equity interest recognized in conjunction with the sale of joint venture properties; a $1.0 million or $0.01 per diluted share impact from non-recurring fee income; and a $1.0 million or $0.01 per diluted share charge related to executive separation costs.

FFO for the six months ended June 30, 2013 totaled $1.99 per diluted share or $178.1 million, as compared to $1.72 per diluted share or $145.3 million for the same period in 2012. FFO for the six months ended June 30, 2013 included: a $3.8 million or $0.04 per diluted share impact from a promoted equity interest recognized in conjunction with the sale of joint venture properties; a $1.0 million or $0.01 per diluted share impact from non-recurring fee income; a $1.0 million or $0.01 per diluted share charge related to executive separation costs; and a $0.7 million or $0.01 per diluted share gain on sale of undeveloped land. 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.

Net Income Attributable to Common Shareholders (“EPS”)

The Company reported EPS of $72.2 million or $0.81 per diluted share for the second quarter of 2013, as compared to $21.8 million or $0.26 per diluted share for the same period in 2012. EPS for the three months ended June 30, 2013 included: a $24.9 million or $0.28 per diluted share gain on sale of discontinued operations; a $13.0 million or $0.15 per diluted share gain on sale of unconsolidated joint venture properties; a $3.8 million or $0.04 per diluted share impact from a promoted equity interest recognized in conjunction with the sale of joint venture properties; a $1.0 million or $0.01 per diluted share impact from non-recurring fee income; and a $1.0 million or $0.01 per diluted share charge related to executive separation costs.

For the six months ended June 30, 2013, the Company reported EPS of $135.6 million or $1.53 per diluted share, as compared to $110.5 million or $1.33 per diluted share for the same period in 2012. EPS for the six months ended June 30, 2013 included: a $56.6 million or $0.64 per diluted share gain on sale of discontinued operations; a $13.0 million or $0.15 per diluted share gain on sale of unconsolidated joint venture properties; a $3.8 million or $0.04 per diluted share impact from a promoted equity interest recognized in conjunction with the sale of joint venture properties; a $1.0 million or $0.01 per diluted share impact from non-recurring fee income; a $1.0 million or $0.01 per diluted share charge related to executive separation costs; and a $0.7 million or $0.01 per diluted share gain on sale of undeveloped land. EPS for the six months ended June 30, 2012 included: a $40.2 million or $0.48 per diluted share gain on acquisition of the controlling interest in twelve joint ventures; a $32.5 million or $0.39 per diluted share 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.

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 43,503 apartment homes included in consolidated same property results, second quarter 2013 same property NOI increased 6.4% compared to the second quarter of 2012, with revenues increasing 5.4% and expenses increasing 3.7%. On a sequential basis, second quarter 2013 same property NOI increased 2.1% compared to the first quarter of 2013, with revenues increasing 1.8% and expenses increasing 1.2% compared to the prior quarter. On a year-to-date basis, 2013 same property NOI increased 6.6%, with revenues increasing 5.6% and expenses increasing 4.1% compared to the same period in 2012. Same property physical occupancy levels for the portfolio averaged 95.4% during the second quarter of both 2012 and 2013, compared to 95.1% in the first quarter of 2013.

The Company defines same property communities as communities owned and stabilized since January 1, 2012, excluding properties held for sale. 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

The Company acquired Camden Post Oak, a 356-home apartment community in Houston, TX, during the quarter for approximately $108.5 million. Camden also acquired 38.8 acres of land in the metro Phoenix area for future development of three multifamily communities.

Disposition Activity

During the quarter, the Company disposed of Camden Reserve, a 526-home apartment community in Orlando, FL, for approximately $40.5 million. Additionally, a joint venture of which the Company owned 20% sold 14 communities with 3,098 apartment homes in Las Vegas, NV for a total sales price of $200.2 million. The Company’s proportionate share of the gain on sale was $13.0 million, and Camden also recognized a promoted equity interest of $3.8 million relating to the achievement of certain performance measures as set forth in the joint venture agreement.

Development Activity

Lease-ups were completed during the quarter at Camden Royal Oaks II, a 104-home project in Houston, TX, which is currently 97% occupied; and Camden Town Square, a 438-home project in Orlando, FL, which is currently 94% occupied. Construction was completed and leasing continued during the quarter at Camden City Centre II, a 268-home project in Houston, TX, which is currently 84% leased.

Construction began during the second quarter at Camden La Frontera in Round Rock, TX, a $36 million project with 300 apartment homes, and Camden Miramar Phase IX in Corpus Christi, TX, an $8 million project with 75 apartment homes. Construction continued at six additional wholly-owned development communities: Camden NOMA in Washington, DC, a $110 million project with 320 apartment homes; Camden Lamar Heights in Austin, TX, a $47 million project with 314 apartment homes; Camden Flatirons in Denver, CO, a $78 million project with 424 apartment homes; Camden Glendale in Glendale, CA, a $115 million project with 303 apartment homes; Camden Boca Raton in Boca Raton, FL, a $54 million project with 261 apartment homes; and Camden Paces in Atlanta, GA, a $110 million project with 379 apartment homes.

Construction began during the second quarter at Camden Southline in Charlotte, NC, a $47 million joint venture project with 266 apartment homes. Construction also continued at two other joint venture development communities: Camden South Capitol in Washington, DC, an $88 million project with 276 apartment homes which is currently 39% leased; and Camden Waterford Lakes in Orlando, FL, a $40 million project with 300 apartment homes.

Equity Issuances

During the second quarter, Camden issued 419,346 common shares through its ATM program at an average price of $74.74 per share, for total net consideration of approximately $30.8 million.

Earnings Guidance

Camden updated its earnings guidance for 2013 based on its current and expected views of the apartment market and general economic conditions. Full-year 2013 FFO is expected to be $4.00 to $4.08 per diluted share, and full-year 2013 EPS is expected to be $2.31 to $2.39 per diluted share. Third quarter 2013 earnings guidance is $0.99 to $1.03 per diluted share for FFO and $0.38 to $0.42 per diluted share for EPS. Guidance for EPS excludes potential future gains on real estate transactions. Camden intends to update its earnings guidance to the market on a quarterly basis.

The Company’s 2013 earnings guidance is based on projections of same property revenue growth between 5.0% and 6.0%, expense growth between 3.25% and 4.25%, and NOI growth between 6.0% and 7.0%. Additional information on the Company’s 2013 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, July 26, 2013 at 11:00 a.m. Central Time to review its second quarter 2013 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: 6328562, 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. 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, development, acquisition, management and disposition of multifamily apartment communities. Camden owns interests in and operates 179 properties containing 62,021 apartment homes across the United States. Upon completion of 10 properties and the expansion of one property under development, the Company's portfolio will increase to 65,239 apartment homes in 189 properties. Camden was recently named by FORTUNE® Magazine for the sixth consecutive year as one of the “100 Best Companies to Work For” in America, ranking #10.

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
2013         2012 2013         2012
Property revenues                
Rental revenues $ 173,946 $ 151,775 $ 343,549 $ 298,029
Other property revenues   27,581             25,143     54,168             48,588  
Total property revenues   201,527             176,918     397,717             346,617  
 
Property expenses
Property operating and maintenance 52,114 47,974 102,608 94,088
Real estate taxes   22,271             18,324     43,924             35,697  
Total property expenses   74,385             66,298     146,532             129,785  
 
Non-property income
Fee and asset management 2,827 3,608 5,721 6,531
Interest and other income (loss) 1,038 (65 ) 1,090 (753 )
Income (loss) on deferred compensation plans   (102 )           (2,185 )   2,897             5,601  
Total non-property income   3,763             1,358     9,708             11,379  
 
Other expenses
Property management 5,242 4,851 11,225 10,135
Fee and asset management 1,486 1,444 2,963 3,187
General and administrative 11,590 9,730 21,384 18,409
Interest 24,797 26,247 49,692 52,930
Depreciation and amortization 54,315 51,087 107,570 98,993
Amortization of deferred financing costs 898 900 1,814 1,812
Expense (benefit) on deferred compensation plans   (102 )           (2,185 )   2,897             5,601  
Total other expenses   98,226             92,074     197,545             191,067  
 
 
Gain on sale of land - - 698 -
Gain on acquisition of controlling interest in joint ventures - - - 40,191
Equity in income of joint ventures   17,798             632     18,732             998  
Income from continuing operations before income taxes 50,477 20,536 82,778 78,333
Income tax expense - current   (468 )           (434 )   (867 )           (658 )
Income from continuing operations 50,009 20,102 81,911 77,675
Income from discontinued operations 62 2,745 810 5,735
Gain on sale of discontinued operations, net of tax   24,866             -     56,649             32,541  
Net income 74,937 22,847 139,370 115,951
Less income allocated to non-controlling interests from continuing operations (1,053 ) (1,019 ) (1,970 ) (1,783 )
Less income, including gain on sale, allocated to non-controlling interests from discontinued operations (1,712 ) (65 ) (1,752 ) (796 )
Less income allocated to perpetual preferred units - - - (776 )
Less write off of original issuance costs of redeemed perpetual preferred units   -             -     -             (2,075 )
Net income attributable to common shareholders $ 72,172           $ 21,763   $ 135,648           $ 110,521  
 
 

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income $ 74,937 $ 22,847 $ 139,370 $ 115,951
Other comprehensive income
Reclassification of prior service cost and net loss on post retirement obligations   13             8     27             16  
Comprehensive income 74,950 22,855 139,397 115,967
Less income allocated to non-controlling interests from continuing operations (1,053 ) (1,019 ) (1,970 ) (1,783 )
Less income, including gain on sale, allocated to non-controlling interests from discontinued operations (1,712 ) (65 ) (1,752 ) (796 )
Less income allocated to perpetual preferred units - - - (776 )
Less write off of original issuance costs of redeemed perpetual preferred units   -             -     -             (2,075 )
Comprehensive income attributable to common shareholders $ 72,185           $ 21,771   $ 135,675           $ 110,537  
 
 

PER SHARE DATA
Net income attributable to common shareholders - basic $ 0.82 $ 0.26 $ 1.54 $ 1.34
Net income attributable to common shareholders - diluted 0.81 0.26 1.53 1.33
Income from continuing operations attributable to common shareholders - basic 0.55 0.23 0.90 0.88
Income from continuing operations attributable to common shareholders - diluted 0.55 0.23 0.90 0.87
 
Weighted average number of common and
common equivalent shares outstanding:
Basic 87,191 83,223 86,949 81,554
Diluted 88,472 83,846 88,283 83,333
 
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
2013         2012 2013         2012
 
Net income attributable to common shareholders $ 72,172 $ 21,763 $ 135,648 $ 110,521
Real estate depreciation from continuing operations 53,094 49,974 105,252 96,771
Real estate depreciation and amortization from discontinued operations - 2,223 215 4,621
Adjustments for unconsolidated joint ventures 1,313 2,038 2,921 4,313
Income allocated to noncontrolling interests 2,765 709 3,722 1,802
(Gain) on sale of unconsolidated joint venture properties (13,032 ) - (13,032 ) -
(Gain) on acquisition of controlling interests in joint ventures - - - (40,191 )
(Gain) on sale of discontinued operations, net of tax   (24,866 )           -   (56,649 )           (32,541 )
Funds from operations - diluted $ 91,446           $ 76,707 $ 178,077           $ 145,296  
 

PER SHARE DATA
Funds from operations - diluted $ 1.02 $ 0.89 $ 1.99 $ 1.72
Cash distributions 0.63 0.56 1.26 1.12
 
Weighted average number of common and
common equivalent shares outstanding:
FFO - diluted 89,558 86,067 89,369 84,461
 

PROPERTY DATA
Total operating properties (end of period) (a) 179 199 179 199
Total operating apartment homes in operating properties (end of period) (a) 62,021 67,694 62,021 67,694
Total operating apartment homes (weighted average) 54,186 53,720 54,249 53,338
Total operating apartment homes - excluding discontinued operations (weighted average) 54,135 50,244 53,894 49,572
 
 
(a) 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 SHEETS
(In thousands)
                                                     
 
(Unaudited) Jun 30, Mar 31, Dec 31, Sept 30, Jun 30,
2013         2013         2012         2012         2012
ASSETS
Real estate assets, at cost
Land $ 965,257 $ 949,244 $ 949,777 $ 929,289 $ 893,910
Buildings and improvements   5,552,095             5,404,616             5,389,674             5,359,707             5,203,675  
6,517,352 6,353,860 6,339,451 6,288,996 6,097,585
Accumulated depreciation   (1,604,402 )           (1,552,499 )           (1,518,896 )           (1,542,530 )           (1,505,862 )
Net operating real estate assets 4,912,950 4,801,361 4,820,555 4,746,466 4,591,723
Properties under development, including land 393,694 339,848 334,463 280,948 297,712
Investments in joint ventures 44,630 45,260 45,092 46,566 47,776
Properties held for sale   -             14,986             30,517             6,373             -  
Total real estate assets 5,351,274 5,201,455 5,230,627 5,080,353 4,937,211
Accounts receivable - affiliates 27,274 26,948 33,625 28,874 29,940
Other assets, net (a) 94,847 89,233 88,260 96,401 88,002
Cash and cash equivalents 6,506 59,642 26,669 5,590 52,126
Restricted cash   6,381             5,578             5,991             6,742             5,295  
Total assets $ 5,486,282           $ 5,382,856           $ 5,385,172           $ 5,217,960           $ 5,112,574  
 
 
 
LIABILITIES AND EQUITY
Liabilities
Notes payable
Unsecured $ 1,579,733 $ 1,538,471 $ 1,538,212 $ 1,415,354 $ 1,381,152
Secured 944,090 945,134 972,256 978,371 1,015,260
Accounts payable and accrued expenses 100,279 102,307 101,896 118,879 87,041
Accrued real estate taxes 36,863 20,683 28,452 43,757 31,607
Distributions payable 56,821 56,559 49,969 49,940 49,135
Other liabilities (b)   63,366             69,679             67,679             78,551             83,471  
Total liabilities 2,781,152 2,732,833 2,758,464 2,684,852 2,647,666
 
Commitments and contingencies
 
Equity
Common shares of beneficial interest 967 962 962 959 945
Additional paid-in capital 3,625,283 3,590,261 3,587,505 3,580,528 3,501,354
Distributions in excess of net income attributable to common shareholders (574,286 ) (590,831 ) (598,951 ) (692,235 ) (674,221 )
Treasury shares, at cost (410,665 ) (412,643 ) (425,355 ) (425,756 ) (430,958 )
Accumulated other comprehensive loss (c)   (1,035 )           (1,048 )           (1,062 )           (660 )           (667 )
Total common equity 2,640,264 2,586,701 2,563,099 2,462,836 2,396,453
Noncontrolling interests   64,866             63,322             63,609             70,272             68,455  
Total equity   2,705,130             2,650,023             2,626,708             2,533,108             2,464,908  
Total liabilities and equity $ 5,486,282           $ 5,382,856           $ 5,385,172           $ 5,217,960           $ 5,112,574  
 
 
 
(a) Includes:
net deferred charges of: $ 14,008 $ 14,861 $ 15,635 $ 13,695 $ 14,432
 
(b) Includes:
deferred revenues of: $ 1,336 $ 2,158 $ 2,521 $ 1,746 $ 2,012
distributions in excess of investments in joint ventures of: $ - $ 9,718 $ 9,509 $ 16,708 $ 16,499
fair value adjustment of derivative instruments: $ - ($2 ) ($1 ) $ 185 $ 5,918
 
(c) Represents the unrealized loss and unamortized 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,
2013         2012 2013         2012
Net income attributable to common shareholders $ 72,172 $ 21,763 $ 135,648 $ 110,521
Real estate depreciation from continuing operations 53,094 49,974 105,252 96,771
Real estate depreciation and amortization from discontinued operations - 2,223 215 4,621
Adjustments for unconsolidated joint ventures 1,313 2,038 2,921 4,313
Income allocated to noncontrolling interests 2,765 709 3,722 1,802
(Gain) on sale of unconsolidated joint venture properties (13,032 ) - (13,032 ) -
(Gain) on acquisition of controlling interest in joint ventures - - - (40,191 )
(Gain) on sale of discontinued operations, net of tax   (24,866 )           -   (56,649 )           (32,541 )
Funds from operations - diluted $ 91,446           $ 76,707 $ 178,077           $ 145,296  
 
Weighted average number of common and
common equivalent shares outstanding:
EPS diluted 88,472 83,846 88,283 83,333
FFO diluted 89,558 86,067 89,369 84,461
 
Net income attributable to common shareholders - diluted $ 0.81 $ 0.26 $ 1.53 $ 1.33
FFO per common share - diluted $ 1.02 $ 0.89 $ 1.99 $ 1.72
 
 
 
 

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:
 
3Q13 Range 2013 Range
Low         High Low         High
 
Expected net income attributable to common shareholders per share - diluted $ 0.38 $ 0.42 $ 2.31 $ 2.39
Expected real estate depreciation 0.58 0.58 2.34 2.34
Expected adjustments for unconsolidated joint ventures 0.02 0.02 0.06 0.06
Expected income allocated to non-controlling interests 0.01 0.01 0.07 0.07

(Gain) on sale of unconsolidated joint venture property
0.00 0.00 (0.15 ) (0.15 )
Realized (gain) on sale of discontinued operations   0.00             0.00   (0.63 )           (0.63 )
Expected FFO per share - diluted $ 0.99 $ 1.03 $ 4.00 $ 4.08
 
 
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,
2013         2012 2013         2012
Net income attributable to common shareholders $ 72,172 $ 21,763 $ 135,648 $ 110,521
Less: Fee and asset management income (2,827 ) (3,608 ) (5,721 ) (6,531 )
Less: Interest and other (income) loss (1,038 ) 65 (1,090 ) 753
Less: Income (loss) on deferred compensation plans 102 2,185 (2,897 ) (5,601 )
Plus: Property management expense 5,242 4,851 11,225 10,135
Plus: Fee and asset management expense 1,486 1,444 2,963 3,187
Plus: General and administrative expense 11,590 9,730 21,384 18,409
Plus: Interest expense 24,797 26,247 49,692 52,930
Plus: Depreciation and amortization 54,315 51,087 107,570 98,993
Plus: Amortization of deferred financing costs 898 900 1,814 1,812
Plus: Expense (benefit) on deferred compensation plans (102 ) (2,185 ) 2,897 5,601
Less: Gain on sale of land - - (698 ) -
Less: Gain on acquisition of controlling interests in joint ventures - - - (40,191 )
Less: Equity in income of joint ventures (17,798 ) (632 ) (18,732 ) (998 )
Plus: Income tax expense - current 468 434 867 658
Less: Income from discontinued operations (62 ) (2,745 ) (810 ) (5,735 )
Less: Gain on sale of discontinued operations, net of tax (24,866 ) - (56,649 ) (32,541 )
Plus: Income allocated to non-controlling interests from continuing operations 1,053 1,019 1,970 1,783
Plus: Income, including gain on sale, allocated to non-controlling interests from discontinued operations 1,712 65 1,752 796
Plus: Income allocated to perpetual preferred units - - - 776
Plus: Write off of original issuance costs of redeemed perpetual preferred units   -             -     -             2,075  
Net Operating Income (NOI) $ 127,142 $ 110,620 $ 251,185 $ 216,832
 
"Same Property" Communities $ 102,471 $ 96,313 $ 202,834 $ 190,335
Non-"Same Property" Communities 23,552 13,326 46,502 24,780
Development and Lease-Up Communities 313 - 409 -
Other   806             981     1,440             1,717  
Net Operating Income (NOI) $ 127,142 $ 110,620 $ 251,185 $ 216,832
 
 

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 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 Six Months Ended
June 30, June 30,
2013         2012 2013         2012
Net income attributable to common shareholders $ 72,172 $ 21,763 $ 135,648 $ 110,521
Plus: Interest expense 24,797 26,247 49,692 52,930
Plus: Amortization of deferred financing costs 898 900 1,814 1,812
Plus: Depreciation and amortization 54,315 51,087 107,570 98,993
Plus: Income allocated to perpetual preferred units - - - 776
Plus: Write off of original issuance costs of redeemed perpetual preferred units - - - 2,075
Plus: Income allocated to non-controlling interests from continuing operations 1,053 1,019 1,970 1,783
Plus: Income, including gain on sale, allocated to non-controlling interests from discontinued operations 1,712 65 1,752 796
Plus: Income tax expense - current 468 434 867 658
Plus: Real estate depreciation and amortization from discontinued operations - 2,223 215 4,621
Less: Gain on acquisition of controlling interests in joint ventures - - - (40,191 )
Less: Gain on sale of land - - (698 ) -
Less: Equity in income of joint ventures (17,798 ) (632 ) (18,732 ) (998 )
Less: Gain on sale of discontinued operations, net of tax   (24,866 )           -     (56,649 )           (32,541 )
EBITDA $ 112,751 $ 103,106 $ 223,449 $ 201,235
 

Copyright Business Wire 2010

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