Camden(US:CPT)2023-02-22 16:00Property Operations - As of December 31, 2022, the company owned interests in, operated, or was developing 178 multifamily properties comprising 60,652 apartment homes across the United States[82]. - The average occupancy rate for operating properties in 2022 was 96.6%[89]. - The average monthly rental rate per apartment in 2022 was $1,594 for Camden Asbury Village, with rates varying across different properties[89]. - The company reported a total of 58,702 operating properties as of December 31, 2022, an increase from 58,300 in 2021[88]. - The average monthly rental rates for various properties ranged from $1,222 to $2,573, with occupancy rates generally above 90%[101]. - Same store property revenues increased by $115.1 million, primarily due to a 12.4% increase in average rental rates[114]. - Non-same store communities saw a revenue increase of 220.7%, totaling $264.8 million[112]. - Total property revenues for the year ended December 31, 2022, reached $1.42 billion, a 24.4% increase compared to the previous year[112]. - Property net operating income (NOI) increased by 27.3% to $924.7 million, driven by improved performance across various communities[112]. - Same store property NOI increased by approximately $96.2 million for the year ended December 31, 2022, driven by a $115.1 million increase in same store property revenues[137]. - Property NOI from non-same store and development communities rose by $114.8 million for the year ended December 31, 2022, attributed to acquisitions and stabilization of properties[139]. Financial Performance - Net income attributable to common shareholders increased to $653.6 million for the year ended December 31, 2022, compared to $303.9 million for the same period in 2021, primarily due to a $474.1 million gain from the acquisition of remaining ownership interests in two investment funds[124]. - The gain on sale of operating properties decreased significantly to $36.4 million in 2022 from $174.4 million in 2021, reflecting a lower number of properties sold[124][146]. - Funds from operations rose to $719.6 million in 2022, up from $559.4 million in 2021, marking a 28.7% increase[173]. - Adjusted funds from operations reached $628.9 million in 2022, compared to $485.7 million in 2021, an increase of 29.4%[173]. - Net cash from operating activities was approximately $744.7 million in 2022, compared to $577.5 million in 2021, reflecting a 29.0% increase[177]. - Net cash used in investing activities increased significantly to approximately $1.5 billion in 2022 from $804.4 million in 2021, primarily due to the acquisition of the Funds for approximately $1.1 billion[177]. - Cash inflows from financing activities totaled approximately $109.9 million in 2022, down from $421.4 million in 2021, indicating a decrease of 73.9%[178]. - The company declared a first quarter dividend of $1.00 per common share for Q1 2023, projecting an annualized dividend rate of $4.00 for 2023[183]. Debt and Financing - The company faces risks from rising interest rates, which could increase borrowing costs and negatively impact cash flows and shareholder distributions[80]. - The company has significant debt, which could limit its ability to make required payments and pay distributions to shareholders[80]. - Scheduled repayments of debt over the next 12 months are manageable at approximately $500 million, representing about 13.6% of total outstanding debt[104]. - Interest expense rose by approximately $16.1 million, primarily due to assuming $515 million of secured mortgage debt with an average interest rate of 4.7%[120]. - Interest expense increased by 16.6% to $113.4 million in 2022 from $97.3 million in 2021[169]. - The interest expense coverage ratio was approximately 7.4 times for the year ended December 31, 2022, compared to 6.7 times for 2021[150]. - The company amended its credit facility to include a $300 million unsecured term loan and increased the capacity of its revolving credit facility from $900 million to $1.2 billion[179]. - As of December 31, 2022, the company had approximately $1.1 billion available under its $1.2 billion unsecured revolving credit facility[104]. Development and Expansion - The company has six projects under construction, expected to add 1,950 apartment homes, with an estimated additional cost to complete of approximately $306.7 million[84]. - The company has plans for future market expansion and development of additional multifamily apartment communities[82]. - Total properties under development amount to 1,950 homes with an estimated cost of $661 million, of which $354.3 million has been incurred[107]. - The company expects to continue seeking opportunities for community development and acquisitions, subject to market conditions[127]. - In 2022, the company acquired two parcels of land totaling approximately 42.6 acres in Charlotte, North Carolina for about $32.7 million, and additional land in Nashville and Richmond for approximately $30.5 million and $7.8 million respectively[103]. Operational Challenges - Changes in rent control or rent stabilization laws could adversely affect the company's operations and property values[80]. - The increase in same store property expenses was approximately $18.9 million, primarily due to higher real estate taxes, repairs, and maintenance expenses[138]. - The company incurred approximately $1.0 million in storm-related expenses due to Hurricane Ian, with no insurance recoveries[118]. - General and administrative expenses decreased as a percentage of total revenues from 5.1% in 2021 to 4.2% in 2022[120]. - Equity in income of joint ventures decreased by approximately $6.7 million for the year ended December 31, 2022, due to the consolidation of the Funds[146]. - Income tax expense increased by approximately $1.1 million for the year ended December 31, 2022, primarily due to higher state income taxes following the acquisition of the remaining ownership interests in the Funds[146]. Strategic Focus - The company is focused on investing in markets characterized by high-growth economic conditions, strong employment, and attractive quality of life[82]. - The company aims to maintain a conservative capital structure to enhance financial flexibility and capitalize on investment opportunities[174]. - The company plans to maintain a strong balance sheet and financial flexibility by focusing on core fundamentals, including generating positive cash flows and controlling overhead costs[127]. - The company has a share repurchase plan authorized for up to $500 million, with no repurchases made in 2022 or through the date of the filing[103]. - The company has common shares with an aggregate offering amount of up to $500 million remaining available for sale under its current ATM program[103].