Camden Property Trust Turns Corner With Third Quarter Gains

HOUSTON-With third quarter 2000 funds from operations of 88-cents per share running 8.9% above third quarter 1999, and occupancy levels showing a 0.6% rise, Camden Property Trust believes it has turned the corner and perceives a brighter fourth quarter.

“Clearly we have turned the corner in Houston and expect to see positive results in the fourth quarter as the market continues to strengthen,” says Keith Oden, Camden’s president. Camden had reported FFO for the third quarter of $39.5 million in comparison to $38.4 million for the same period in 1999. This year’s third quarter revenues tally $102.4 million, up from $94.2 million in third quarter 1999. Year-to-date, Camden’s FFO is $2.60 per diluted share or $116.4 million in comparison to $2.37 per share or $113.7 million in 1999, an increase of 10.1%.

Occupancy rates are slightly higher, coming in at 94.6% for the quarter, up from 94% in third quarter 1999. For the 38,417 apartment homes included in the third quarter “same-property” results, revenues have increased 3.9% while operating expenses are up 0.7%, producing a 6.0% increase in same-property net operating income. A year-to-date analysis shows same property NOI is riding at 4.5%, with revenue growth of 3.3% and expense growth of 1.2%.

During the third quarter, Camden has completed a 151-unit expansion at the Miramar student housing facility in Corpus Christi, TX. Lease-ups have been completed at the Park at Greenway and the Park at Holly Springs in Houston. The Park properties in Orlando, Louisville, Phoenix and Dallas are still being leased, while the Park at Crown Valley in Southern California has just started its marketing campaign. Camden is calling for 2001 completions of more multifamily projects in Dallas and Southern California.

A total of $137.2 million has been generated in the past quarter with the sale of 3,599 apartment homes. That and $21.4 million in land and non-multifamily sales in this year’s first quarter bring Camden’s total disposition volume for 2000 to $158.6 million. The revenue has been used to reduce debt and lower the company’s overall leverage. The company intends to pursue a similar disposition program in 2001 as part of its strategy to continue decreasing the volatility of cash flows in its stabilized portfolio.

“We plan to implement this strategy through a combination of joint ventures and/or asset sales that would contribute to a reduction in the volatility of our cash flows,” says Ric Campo, chairman and CEO. “Disposition proceeds could then be utilized to fund investments in higher growth markets.”