CAMDEN PROPERTY TRUST ANNOUNCES SECOND QUARTER 2025 OPERATING RESULTS
Houston, Texas (July 31, 2025) - Camden Property Trust (NYSE:CPT) (the "Company") announced today operating results for the three and six months ended June 30, 2025. Net Income Attributable to Common Shareholders (“EPS”), Funds from Operations (“FFO”), Core Funds from Operations ("Core FFO"), and Core Adjusted Funds from Operations (“Core AFFO”) for the three and six months ended June 30, 2025 are detailed below. A reconciliation of EPS to FFO, Core FFO, and Core AFFO is included in the financial tables accompanying this press release.
Three Months Ended June 30,
Six Months Ended June 30,
Per Diluted Share
2025
2024
2025
2024
EPS (1)
$0.74
$0.40
$1.10
$1.17
FFO
$1.67
$1.71
$3.37
$3.37
Core FFO
$1.70
$1.71
$3.42
$3.41
Core AFFO
$1.43
$1.44
$3.01
$2.94
Three Months Ended
2Q25 Guidance
2Q25 Guidance
Per Diluted Share
June 30, 2025
Midpoint
Variance
EPS (1)
$0.74
$0.29
$0.45
FFO
$1.67
$1.67
$0.00
Core FFO
$1.70
$1.69
$0.01
(1) The Company's EPS included approximately $0.43 per diluted share due to the gain on sale of an operating property for three and six months ended June 30, 2025.
Quarterly Growth
Sequential Growth
Year-To-Date Growth
Same Property Results
2Q25 vs. 2Q24
2Q25 vs. 1Q25
2025 vs. 2024
Revenues
1.0%
0.8%
0.9%
Expenses
2.4%
3.2%
1.5%
Net Operating Income ("NOI")
0.2%
(0.6)%
0.6%
Same Property Results
2Q25
2Q24
1Q25
Occupancy
95.6%
95.3%
95.4%
For 2025, the Company defines same property communities as communities wholly-owned and stabilized since January 1, 2024, excluding communities under redevelopment and properties held for sale. A reconciliation of net income to NOI and same property NOI is included in the financial tables accompanying this press release.
Operating Statistics - Same Property Portfolio
New Lease and Renewal Data - Date Effective (1)
2Q25
2Q24
1Q25
Effective New Lease Rates
(2.1)%
(2.5)%
(3.1)%
Effective Renewal Rates
3.7%
3.4%
3.3%
Effective Blended Lease Rates
0.7%
0.1%
(0.1)%
(1) Average change in same property new lease and renewal rates vs. expiring lease rates when effective.
1
Occupancy, Bad Debt and Turnover Data
2Q25
2Q24
1Q25
Occupancy
95.6%
95.3%
95.4%
Bad Debt
0.6%
0.8%
0.6%
Annualized Gross Turnover
51%
53%
40%
Annualized Net Turnover
39%
42%
31%
Development Activity
During the quarter, lease-up was completed at Camden Woodmill Creek in Spring, TX. Additionally, leasing continued at Camden Durham in Durham, NC, Camden Long Meadow Farms in Richmond, TX, and Camden Village District in Raleigh, NC.
Development Communities - Construction Completed and Project in Lease-Up ($ in millions)
Total
Total
% Leased
Community Name
Location
Homes
Cost
as of 7/28/2025
Camden Durham
Durham, NC
420
$145.4
95
%
Camden Long Meadow Farms
Richmond, TX
188
72.5
75
%
Total
608
$217.9
Development Communities - Construction Ongoing ($ in millions)
Total
Total
% Leased
Community Name
Location
Homes
Estimated Cost
as of 7/28/2025
Camden Village District
Raleigh, NC
369
$138.0
37
%
Camden South Charlotte
Charlotte, NC
420
163.0
Camden Blakeney
Charlotte, NC
349
154.0
Camden Nations
Nashville, TN
393
184.0
Total
1,531
$639.0
Acquisition and Disposition Activity
During the quarter, the Company acquired Camden Clearwater, a 360-apartment home community located in the Tampa, FL metropolitan area for approximately $138.7 million. Also during the quarter, the Company disposed of a 337-apartment home community in Houston, TX for $60.0 million and recognized a gain of approximately $47.3 million. Subsequent to quarter-end, the Company disposed of two operating communities that operated as one dual-phased community in Houston, TX and one operating community in Dallas, TX comprising a total of 626 apartment homes for approximately $113.5 million.
Liquidity Analysis
As of June 30, 2025, Camden had approximately $717.5 million of liquidity comprised of approximately $33.1 million in cash and cash equivalents, and approximately $684.4 million of availability under its unsecured credit facility and commercial paper program. At quarter-end, the Company had approximately $312.2 million left to fund under its existing wholly-owned development pipeline.
Earnings Guidance
Camden updated its earnings guidance for 2025 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for third quarter 2025 as detailed below. Expected EPS excludes gains, if any, from future real estate transactions.
3Q25
2025
2025 Midpoint
Per Diluted Share
Range
Range
Current
Prior
Change
EPS
$1.01 - $1.05
$2.33 - $2.43
$2.38
$1.16
$1.22
FFO
$1.64 - $1.68
$6.65 - $6.75
$6.70
$6.68
$0.02
Core FFO(1)
$1.67 - $1.71
$6.76 - $6.86
$6.81
$6.78
$0.03
(1) The Company's 2025 core FFO guidance excludes approximately $0.11 per share of non-core charges for legal costs and settlements and expensed transaction pursuit costs.
2
2025
2025 Midpoint
Same Property Growth Guidance
Range
Current
Prior
Change
Revenues
0.50% - 1.50%
1.00%
1.00%
0.00%
Expenses
2.00% - 3.00%
2.50%
3.00%
(0.50)%
NOI
(0.75%) - 1.25%
0.25%
0.00%
0.25%
Camden intends to update its earnings guidance to the market on a quarterly basis. Additional information on the Company’s 2025 financial outlook including key assumptions for same property growth and a reconciliation of expected EPS to expected FFO and expected Core FFO are included in the financial tables accompanying this press release.
The Company strongly encourages interested parties to join the call via webcast in order to view any associated videos, slide presentations, etc. The dial-in phone line will be reserved for accredited analysts and investors who plan to pose questions to Management during the Q&A session of the call.
Supplemental financial information is available in the Investors section of the Company’s website under Earnings Releases or by calling Camden’s Investor Relations Department at (713) 354-2787.
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 at the time of this publication, and the Company assumes no obligation to update or supplement these statements because of subsequent events.
About Camden
Camden Property Trust, an S&P 500 Company, is a real estate company primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns and operates 173 properties containing 59,046 apartment homes across the United States. Upon completion of 4 properties currently under development, the Company’s portfolio will increase to 60,577 apartment homes in 177 properties. Camden has been recognized as one of the 100 Best Companies to Work For® by FORTUNE magazine for 18 consecutive years, most recently ranking #18. For additional information, please contact Camden’s Investor Relations Department at (713) 354-2787 or access our website at camdenliving.com.
3
CAMDEN
OPERATING RESULTS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
OPERATING DATA
Property revenues (a)
$396,509
$387,150
$787,074
$770,291
Property expenses
Property operating and maintenance
93,031
90,126
182,729
179,170
Real estate taxes
50,641
48,763
100,363
98,264
Total property expenses
143,672
138,889
283,092
277,434
Non-property income
Fee and asset management
2,633
2,606
5,120
3,890
Interest and other income
68
1,598
78
3,366
Income on deferred compensation plans
8,350
1,073
9,548
6,892
Total non-property income
11,051
5,277
14,746
14,148
Other expenses
Property management
9,699
9,846
19,594
19,240
Fee and asset management
641
475
1,312
918
General and administrative
21,183
18,154
39,891
34,847
Interest
35,375
32,227
69,165
64,764
Depreciation and amortization
152,108
145,894
301,360
290,696
Expense on deferred compensation plans
8,350
1,073
9,548
6,892
Total other expenses
227,356
207,669
440,870
417,357
Loss on early retirement of debt
—
—
—
(921)
Gain on sale of operating property
47,293
—
47,293
43,806
Income from continuing operations before income taxes
83,825
45,869
125,151
132,533
Income tax expense
(1,231)
(1,059)
(1,790)
(1,964)
Net income
82,594
44,810
123,361
130,569
Net Income allocated to non-controlling interests
(1,924)
(1,893)
(3,869)
(3,763)
Net income attributable to common shareholders
$80,670
$42,917
$119,492
$126,806
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income
$82,594
$44,810
$123,361
$130,569
Other comprehensive income
Unrealized gain on cash flow hedging activities
—
—
—
85
Reclassification of net loss on cash flow hedging activities, prior service cost and net loss on post retirement obligation
351
361
702
1,450
Comprehensive income
82,945
45,171
124,063
132,104
Net income allocated to non-controlling interests
(1,924)
(1,893)
(3,869)
(3,763)
Comprehensive income attributable to common shareholders
$81,021
$43,278
$120,194
$128,341
PER SHARE DATA
Total earnings per common share - basic
$0.74
$0.40
$1.10
$1.17
Total earnings per common share - diluted
0.74
0.40
1.10
1.17
Weighted average number of common shares outstanding:
Basic
108,636
108,406
108,584
108,556
Diluted
109,400
108,424
108,636
108,577
(a) We elected to combine lease and non-lease components and thus present rental revenue in a single line item in our consolidated statements of income and comprehensive income. For the three months ended June 30, 2025, we recognized $396.5 million of property revenue which consisted of approximately $352.4 million of rental revenue and approximately $44.1 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. This compares to property revenue of $387.2 million recognized for the three months ended June 30, 2024, made up of approximately $344.6 million of rental revenue and approximately $42.6 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. For the six months ended June 30, 2025, we recognized $787.1 million of property revenue which consisted of approximately $700.7 million of rental revenue and approximately $86.4 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. This compares to the $770.3 million of property revenue recognized for the six months ended June 30, 2024, made up of approximately $686.2 million of rental revenue and approximately $84.1 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. Revenue related to utility rebilling to residents was $11.6 million and $10.5 million for the three months ended June 30, 2025 and 2024, respectively and was $23.0 million and $21.2 million for the six months ended June 30, 2025 and 2024, respectively.
Note: Please refer to the following pages for definitions and reconciliations of all non-GAAP financial measures presented in this document.
4
CAMDEN
FUNDS FROM OPERATIONS
(In thousands, except per share and property data amounts)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
FUNDS FROM OPERATIONS
Net income attributable to common shareholders
$80,670
$42,917
$119,492
$126,806
Real estate depreciation and amortization
148,886
142,895
295,054
284,742
Income allocated to non-controlling interests
1,924
1,893
3,869
3,763
Gain on sale of operating property
(47,293)
—
(47,293)
(43,806)
Funds from operations
$184,187
$187,705
$371,122
$371,505
Less: Casualty-related expenses, net of recoveries (a)
(1,099)
(1,587)
(969)
(64)
Plus: Severance (b)
—
—
—
506
Plus: Legal costs and settlements (b)
2,311
1,114
4,183
1,966
Plus: Loss on early retirement of debt
—
—
—
921
Plus: Expensed transaction, development, and other pursuit costs (b)
2,082
660
2,963
660
Plus: Other miscellaneous items (a)
76
—
76
—
Core funds from operations
$187,557
$187,892
$377,375
$375,494
Less: Recurring capitalized expenditures (c)
(29,968)
(29,595)
(46,066)
(51,620)
Core adjusted funds from operations
$157,589
$158,297
$331,309
$323,874
PER SHARE DATA
Funds from operations - diluted
$1.67
$1.71
$3.37
$3.37
Core funds from operations - diluted
1.70
1.71
3.42
3.41
Core adjusted funds from operations - diluted
1.43
1.44
3.01
2.94
Distributions declared per common share
1.05
1.03
2.10
2.06
Weighted average number of common shares outstanding:
FFO/Core FFO/Core AFFO - diluted
110,269
110,018
110,230
110,171
PROPERTY DATA
Total operating properties (end of period) (d)
176
172
176
172
Total operating apartment homes in operating properties (end of period) (d)
59,672
58,250
59,672
58,250
Total operating apartment homes (weighted average)
59,633
58,244
59,353
58,290
.
(a) Non-core adjustment generally recorded within Property NOI.
(b) Non-core adjustment generally recorded within General and Administrative Expenses.
(c) Capital expenditures necessary to help preserve the value of and maintain the functionality at our communities.
(d) Includes joint ventures and properties held for sale, if any.
Note: Please refer to the following pages for definitions and reconciliations of all non-GAAP financial measures presented in this document.
5
CAMDEN
BALANCE SHEETS
(In thousands)
(Unaudited)
Jun 30, 2025
Mar 31, 2025
Dec 31, 2024
Sep 30, 2024
Jun 30, 2024
ASSETS
Real estate assets, at cost
Land
$1,789,207
$1,763,468
$1,722,526
$1,718,185
$1,716,515
Buildings and improvements
11,763,017
11,550,852
11,319,460
11,222,261
11,148,312
13,552,224
13,314,320
13,041,986
12,940,446
12,864,827
Accumulated depreciation
(5,128,622)
(5,011,583)
(4,867,422)
(4,725,152)
(4,582,440)
Net operating real estate assets
8,423,602
8,302,737
8,174,564
8,215,294
8,282,387
Properties under development and land
380,437
403,657
401,542
418,209
439,758
Total real estate assets
8,804,039
8,706,394
8,576,106
8,633,503
8,722,145
Accounts receivable – affiliates
8,889
8,950
8,991
8,993
9,903
Other assets, net (a)
262,100
239,999
234,838
262,339
245,625
Cash and cash equivalents
33,091
26,182
21,045
31,234
93,932
Restricted cash
11,454
11,607
11,164
11,112
7,969
Total assets
$9,119,573
$8,993,132
$8,852,144
$8,947,181
$9,079,574
LIABILITIES AND EQUITY
Liabilities
Notes payable
Unsecured
$3,495,487
$3,405,255
$3,155,233
$3,121,499
$3,222,569
Secured
330,476
330,416
330,358
330,299
330,241
Accounts payable and accrued expenses
206,018
195,197
215,179
221,880
212,247
Accrued real estate taxes
91,954
46,192
78,529
131,693
90,702
Distributions payable
116,007
115,983
113,549
113,505
113,506
Other liabilities (b)
219,635
212,871
212,107
214,027
183,377
Total liabilities
4,459,577
4,305,914
4,104,955
4,132,903
4,152,642
Equity
Common shares of beneficial interest
1,157
1,157
1,158
1,158
1,157
Additional paid-in capital
5,941,893
5,936,982
5,930,729
5,927,477
5,924,608
Distributions in excess of net income attributable to common shareholders
(1,007,075)
(973,416)
(897,931)
(826,725)
(710,633)
Treasury shares
(350,166)
(351,092)
(359,732)
(359,989)
(359,975)
Accumulated other comprehensive income (c)
1,676
1,325
974
641
283
Total common equity
4,587,485
4,614,956
4,675,198
4,742,562
4,855,440
Non-controlling interests
72,511
72,262
71,991
71,716
71,492
Total equity
4,659,996
4,687,218
4,747,189
4,814,278
4,926,932
Total liabilities and equity
$9,119,573
$8,993,132
$8,852,144
$8,947,181
$9,079,574
(a) Includes net deferred charges of:
$1,953
$2,730
$2,675
$3,244
$3,703
(b) Includes deferred revenues of:
$692
$760
$767
$830
$894
(c) Represents the unrealized net loss and unamortized prior service costs on post retirement obligations, and unrealized net gain on cash flow hedging activities.
6
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 (computed in accordance with accounting principles generally accepted in the United States of America ("GAAP"), excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, and adjustments for unconsolidated joint ventures to reflect FFO on the same basis. Our calculation of diluted FFO also assumes conversion of all potentially dilutive securities, including certain non-controlling interests, which are convertible into common shares. We consider FFO to be an appropriate supplemental measure of operating performance because, by excluding gains and losses on dispositions of real estate, impairment write-downs of certain real estate assets, and depreciation, FFO can assist in the comparison of the operating performance of a company’s real estate investments between periods or to different companies.
Core FFO
Core FFO represents FFO as further adjusted for Non-Core Adjustments. We consider Core FFO to be a helpful supplemental measure of operating performance as it excludes certain items which by their nature are not comparable period over period and therefore tends to obscure actual operating performance. Our definition of Core FFO may differ from other REITs, and there can be no assurance our basis for computing this measure is comparable to other REITs.
Core Adjusted FFO
In addition to FFO & Core FFO, we compute Core Adjusted FFO ("Core AFFO") as a supplemental measure of operating performance. Core AFFO is calculated utilizing Core FFO less recurring capital expenditures which are necessary to help preserve the value of and maintain the functionality at our communities. Our definition of recurring capital expenditures may differ from other REITs, and there can be no assurance our basis for computing this measure is comparable to other REITs. A reconciliation of FFO to Core FFO and Core AFFO is provided below:
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Net income attributable to common shareholders
$80,670
$42,917
$119,492
$126,806
Real estate depreciation and amortization
148,886
142,895
295,054
284,742
Income allocated to non-controlling interests
1,924
1,893
3,869
3,763
Gain on sale of operating property
(47,293)
—
(47,293)
(43,806)
Funds from operations
$184,187
$187,705
$371,122
$371,505
Less: Casualty-related expenses, net of recoveries
(1,099)
(1,587)
(969)
(64)
Plus: Severance
—
—
—
506
Plus: Legal costs and settlements
2,311
1,114
4,183
1,966
Plus: Loss on early retirement of debt
—
—
—
921
Plus: Expensed transaction, development, and other pursuit costs
2,082
660
2,963
660
Plus: Miscellaneous other items
76
—
76
—
Core funds from operations
$187,557
$187,892
$377,375
$375,494
Less: Recurring capitalized expenditures
(29,968)
(29,595)
(46,066)
(51,620)
Core adjusted funds from operations
$157,589
$158,297
$331,309
$323,874
Weighted average number of common shares outstanding:
EPS diluted
109,400
108,424
108,636
108,577
FFO/Core FFO/ Core AFFO diluted
110,269
110,018
110,230
110,171
7
CAMDEN
NON-GAAP FINANCIAL MEASURES
DEFINITIONS & RECONCILIATIONS
(In thousands, except per share amounts)
(Unaudited)
Reconciliation of FFO, Core FFO, and Core AFFO per share
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Total Earnings Per Common Share - Diluted
$0.74
$0.40
$1.10
$1.17
Real estate depreciation and amortization
1.35
1.29
2.67
2.57
Income allocated to non-controlling interests
0.01
0.02
0.03
0.03
Gain on sale of operating property
(0.43)
—
(0.43)
(0.40)
FFO per common share - Diluted
$1.67
$1.71
$3.37
$3.37
Less: Casualty-related expenses, net of recoveries
(0.01)
(0.02)
(0.01)
—
Plus: Severance
—
—
—
—
Plus: Legal costs and settlements
0.02
0.01
0.03
0.02
Plus: Loss on early retirement of debt
—
—
—
0.01
Plus: Expensed transaction, development, and other pursuit costs
0.02
0.01
0.03
0.01
Plus: Miscellaneous other items
—
—
—
—
Core FFO per common share - Diluted
$1.70
$1.71
$3.42
$3.41
Less: Recurring capitalized expenditures
(0.27)
(0.27)
(0.41)
(0.47)
Core AFFO per common share - Diluted
$1.43
$1.44
$3.01
$2.94
Expected FFO & Core FFO
Expected FFO and Core FFO is calculated in a method consistent with historical FFO and Core FFO, and is considered appropriate supplemental measures of expected operating performance when compared to expected earnings per common share (EPS). A reconciliation of the ranges provided for diluted EPS to expected FFO and expected Core FFO per diluted share is provided below:
3Q25
Range
2025
Range
Low
High
Low
High
Expected earnings per common share - diluted
$1.01
$1.05
$2.33
$2.43
Expected real estate depreciation and amortization
1.38
1.38
5.45
5.45
Expected income allocated to non-controlling interests
0.04
0.04
0.09
0.09
Expected (gain) on sale of operating properties
(0.79)
(0.79)
(1.22)
(1.22)
Expected FFO per share - diluted
$1.64
$1.68
$6.65
$6.75
Anticipated Adjustments to FFO
0.03
0.03
0.11
0.11
Expected Core FFO per share - diluted
$1.67
$1.71
$6.76
$6.86
Note: This table contains forward-looking statements. Please see paragraph regarding forward-looking statements earlier in this document.
8
CAMDEN
NON-GAAP FINANCIAL MEASURES
DEFINITIONS & RECONCILIATIONS
(In thousands, except per share amounts)
(Unaudited)
Net Operating Income (NOI)
NOI is defined by the Company as property revenue less total property expenses. NOI is further detailed in the Components of Property NOI schedules on page 11 of the supplement. The Company considers NOI to be an appropriate supplemental measure of operating performance to net income because it reflects the operating performance of our communities without allocation of corporate level property management overhead or general and administrative costs. Our definition of NOI may differ from other REITs and there can be no assurance our basis for computing this measure is comparable to other REITs. A reconciliation of net income to net operating income is provided below:
Three months ended June 30,
Six months ended June 30,
2025
2024
2025
2024
Net income
$82,594
$44,810
$123,361
$130,569
Less: Fee and asset management income
(2,633)
(2,606)
(5,120)
(3,890)
Less: Interest and other income
(68)
(1,598)
(78)
(3,366)
Less: Income on deferred compensation plans
(8,350)
(1,073)
(9,548)
(6,892)
Plus: Property management expense
9,699
9,846
19,594
19,240
Plus: Fee and asset management expense
641
475
1,312
918
Plus: General and administrative expense
21,183
18,154
39,891
34,847
Plus: Interest expense
35,375
32,227
69,165
64,764
Plus: Depreciation and amortization expense
152,108
145,894
301,360
290,696
Plus: Expense on deferred compensation plans
8,350
1,073
9,548
6,892
Plus: Loss on early retirement of debt
—
—
—
921
Less: Gain on sale of operating property
(47,293)
—
(47,293)
(43,806)
Plus: Income tax expense
1,231
1,059
1,790
1,964
NOI
$252,837
$248,261
$503,982
$492,857
"Same Property" Communities
$241,000
$240,431
$483,414
$480,682
Non-"Same Property" Communities
7,121
3,065
12,501
5,530
Development and Lease-Up Communities
1,611
354
3,003
487
Disposition/Other
3,105
4,411
5,064
6,158
NOI
$252,837
$248,261
$503,982
$492,857
9
CAMDEN
NON-GAAP FINANCIAL MEASURES
DEFINITIONS & RECONCILIATIONS
(In thousands, except per share amounts)
(Unaudited)
EBITDAre and Adjusted EBITDAre
Earnings Before Interest, Taxes, Depreciation, and Amortization for Real Estate (“EBITDAre”) and Adjusted EBITDAre are supplemental measures of our financial performance. EBITDAre is calculated in accordance with the definition adopted by NAREIT as earnings before interest, taxes, depreciation and amortization plus or minus losses and gains from the sale of certain real estate assets, including gains/losses on change of control, plus impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, and adjustments to reflect the Company’s share of EBITDAre of unconsolidated joint ventures.
Adjusted EBITDAre represents EBITDAre as further adjusted for non-core items. The Company considers EBITDAre and Adjusted EBITDAre to be appropriate supplemental measures of operating performance to net income because it represents income before non-cash depreciation and the cost of debt, and excludes gains or losses from property dispositions, and impairment write-downs of certain real estate assets. Annualized Adjusted EBITDAre is Adjusted EBITDAre as reported for the period multiplied by 4 for quarter results or 2 for 6 month results. A reconciliation of net income to EBITDAre and adjusted EBITDAre is provided below:
Three months ended June 30,
Six months ended June 30,
2025
2024
2025
2024
Net income
$82,594
$44,810
$123,361
$130,569
Plus: Interest expense
35,375
32,227
69,165
64,764
Plus: Depreciation and amortization expense
152,108
145,894
301,360
290,696
Plus: Income tax expense
1,231
1,059
1,790
1,964
Less: Gain on sale of operating property
(47,293)
—
(47,293)
(43,806)
EBITDAre
$224,015
$223,990
$448,383
$444,187
Less: Casualty-related expenses, net of recoveries
(1,099)
(1,587)
(969)
(64)
Plus: Severance
—
—
—
506
Plus: Legal costs and settlements
2,311
1,114
4,183
1,966
Plus: Loss on early retirement of debt
—
—
—
921
Plus: Expensed transaction, development, and other pursuit costs
2,082
660
2,963
660
Plus: Miscellaneous other items
76
—
76
—
Adjusted EBITDAre
$227,385
$224,177
$454,636
$448,176
Annualized Adjusted EBITDAre
$909,540
$896,708
$909,272
$896,352
Net Debt to Annualized Adjusted EBITDAre
The Company believes Net Debt to Annualized Adjusted EBITDAre to be an appropriate supplemental measure of evaluating balance sheet leverage. Net Debt is defined by the Company as the average monthly balance of Total Debt during the period, less the average monthly balance of Cash and Cash Equivalents during the period. The following tables reconcile average Total debt to Net Debt and computes the ratio to Adjusted EBITDAre for the following periods:
