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Camden Property Trust Announces Third Quarter 2024 Operating Results

1. Camden's EPS fell to ($0.04) from $0.44 last year. 2. The company recorded a $41 million impairment from halted projects. 3. Core FFO showed marginal change with guidance adjusted downward. 4. Occupancy rate remains stable at 95.5%, slightly improving year-over-year. 5. Hurricanes impacted communities, incurring $2.1 million in expenses.

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Why Bearish?

The decline in EPS and impairment charges indicate potential profit challenges. Past events show that significant losses affect stock valuations.

How important is it?

The financial results and metrics are critical for assessing CPT's performance and trends. Investors evaluate earnings closely to gauge future growth prospects.

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Immediate financial results may influence investor confidence and stock performance shortly. Similar past quarterly declines have led to rapid reactions in stock prices.

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HOUSTON--(BUSINESS WIRE)--Camden Property Trust (NYSE:CPT) (the "Company") announced today operating results for the three and nine months ended September 30, 2024. 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 nine months ended September 30, 2024 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 September 30, Nine Months Ended September 30, Per Diluted Share 2024 2023 2024 2023 EPS(1) ($0.04) $0.44 $1.13 $1.66 FFO $1.65 $1.73 $5.02 $5.06 Core FFO $1.71 $1.73 $5.12 $5.09 Core AFFO $1.48 $1.49 $4.42 $4.50 Three Months Ended 3Q24 Guidance 3Q24 Guidance Per Diluted Share September 30, 2024 Midpoint Variance EPS(1) ($0.04) $0.33 ($0.37) FFO $1.65 $1.65 $0.00 Core FFO $1.71 $1.68 $0.03 (1) For the three and nine months ended September 30, 2024, EPS included approximately $0.37 per share of impairments associated with land development activities. During the quarter, Camden decided not to move forward at the present time with four predevelopment projects. These decisions were made as part of a strategic review taking into consideration the Company’s current portfolio concentrations and the overall operating environments in those markets or submarkets. The Company recognized a non-cash charge of approximately $41.0 million, or $0.37 per diluted share, of impairment expenses related to land development projects located in Los Angeles, CA, Houston, TX, and Atlanta, GA. These reductions primarily reflect the carrying and other costs incurred since acquiring those development sites. Camden will also cease capitalizing interest and expenses associated with these assets going forward. Quarterly Growth Sequential Growth Year-To-Date Growth Same Property Results 3Q24 vs. 3Q23 3Q24 vs. 2Q24 2024 vs. 2023 Revenues 0.6% 0.3% 1.5% Expenses 1.8% 1.5% 2.4% Net Operating Income ("NOI") 0.0% (0.4)% 1.0% Same Property Results 3Q24 3Q23 2Q24 Occupancy 95.5% 95.5% 95.3% For 2024, the Company defines same property communities as communities wholly-owned and stabilized since January 1, 2023, 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 Signed (1) October 2024* October 2023 3Q24 3Q23 Signed New Lease Rates (4.8)% (3.7)% (2.8)% 0.2% Signed Renewal Rates 3.0% 4.1% 3.6% 5.0% Signed Blended Lease Rates (1.7)% (0.9)% 0.1% 2.3% New Lease and Renewal Data - Date Effective (2) October 2024* October 2023 3Q24 3Q23 Effective New Lease Rates (4.4)% (2.6)% (2.2)% 0.9% Effective Renewal Rates 3.4% 4.7% 3.9% 5.9% Effective Blended Lease Rates (0.8)% 1.1% 0.9% 3.3% *Preliminary data as of October 30, 2024 (1) Average change in same property new lease and renewal rates vs. expiring lease rates when signed. (2) Average change in same property new lease and renewal rates vs. expiring lease rates when effective. Occupancy and Bad Debt October 2024* October 2023 3Q24 3Q23 Occupancy 95.3% 94.9% 95.5% 95.5% Bad Debt NA 0.9% 0.9% 1.4% *Preliminary data as of October 30, 2024 Development Activity During the quarter, leasing continued at Camden Woodmill Creek in Spring, TX, Camden Durham in Durham, NC, and Camden Long Meadow Farms in Richmond, TX. Development Communities - Construction Completed and Project in Lease-Up ($ in millions) Total Total % Leased Community Name Location Homes Cost as of 10/30/2024 Camden Woodmill Creek Spring, TX 189 $71.6 79% Development Communities - Construction Ongoing ($ in millions) Total Total % Leased Community Name Location Homes Estimated Cost as of 10/30/2024 Camden Durham Durham, NC 420 $145.0 74% Camden Long Meadow Farms Richmond, TX 188 75.0 46% Camden Village District Raleigh, NC 369 138.0 Camden South Charlotte Charlotte, NC 420 163.0 Camden Blakeney Charlotte, NC 349 154.0 Total 1,746 $675.0 Liquidity Analysis As of September 30, 2024, Camden had nearly $1.1 billion of liquidity comprised of approximately $31.2 million in cash and cash equivalents, and over $1.0 billion of availability under its unsecured credit facility. At quarter-end, the Company had approximately $267.0 million left to fund under its existing wholly-owned development pipeline. During the quarter, Camden utilized cash on hand and its unsecured revolving credit facility to repay its 3.68% $250.0 million senior unsecured notes payable which matured in September 2024. Also during the quarter, the Company extended the maturity date of its $40 million unsecured floating rate term loan to 2026. Hurricane Impact During the quarter, Hurricane Beryl impacted several of our multifamily communities in the Houston, TX area and we incurred approximately $2.1 million of storm-related expenses, net of anticipated insurance recoveries. Camden expects no material charges related to either Hurricane Helene or Hurricane Milton. Earnings Guidance Camden updated its earnings guidance for 2024 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for fourth quarter 2024 as detailed below. Expected EPS excludes gains, if any, from future real estate transactions. 4Q24 2024 2024 Midpoint Per Diluted Share Range Range Current Prior Change EPS $0.34 - $0.38 $1.46 - $1.50 $1.48 $1.88 $(0.40) FFO $1.65 - $1.69 $6.67 - $6.71 $6.69 $6.72 $(0.03) Core FFO(1) $1.68 - $1.72 $6.79 - $6.83 $6.81 $6.79 $0.02 (1) The Company's 2024 core FFO guidance excludes approximately $0.12 per share of non-core charges for casualty-related expenses, severance, legal costs, loss on early retirement of debt, expensed pursuit costs, and advocacy contributions. 2024 2024 Midpoint Same Property Growth Guidance Range Current Prior Change Revenues 1.10% - 1.50% 1.30% 1.50% (0.20)% Expenses 2.10% - 2.50% 2.30% 2.85% (0.55)% NOI 0.35% - 1.15% 0.75% 0.75% 0.00% Camden intends to update its earnings guidance to the market on a quarterly basis. Additional information on the Company’s 2024 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. Conference Call Friday, November 1, 2024 at 10:00 AM CT Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061; Passcode: 6652140 Webcast: https://investors.camdenliving.com 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 172 properties containing 58,250 apartment homes across the United States. Upon completion of 5 properties currently under development, the Company’s portfolio will increase to 59,996 apartment homes in 177 properties. Camden has been recognized as one of the 100 Best Companies to Work For® by FORTUNE magazine for 17 consecutive years, most recently ranking #24. For additional information, please contact Camden’s Investor Relations Department at (713) 354-2787 or access our website at camdenliving.com. CAMDEN OPERATING RESULTS (In thousands, except per share amounts) (Unaudited)   Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 OPERATING DATA Property revenues (a) $387,232 $390,778 $1,157,523 $1,154,440 Property expenses Property operating and maintenance 95,940 91,011 275,110 264,038 Real estate taxes 47,420 49,094 145,684 148,345 Total property expenses 143,360 140,105 420,794 412,383 Non-property income Fee and asset management 1,707 1,077 5,597 2,373 Interest and other income 1,076 64 4,442 557 Income/(loss) on deferred compensation plans 8,248 (3,339 ) 15,140 5,417 Total non-property income 11,031 (2,198 ) 25,179 8,347 Other expenses Property management 9,817 7,891 29,057 24,939 Fee and asset management 623 444 1,541 1,277 General and administrative 18,845 15,543 53,692 46,762 Interest 32,486 33,006 97,250 99,427 Depreciation and amortization 145,844 144,359 436,540 429,857 Expense/(benefit) on deferred compensation plans 8,248 (3,339 ) 15,140 5,417 Total other expenses 215,863 197,904 633,220 607,679 Impairment associated with land development activities (40,988 ) — (40,988 ) — Loss on early retirement of debt — — (921 ) (2,513 ) Gain on sale of operating property — — 43,806 48,919 Income (loss) from continuing operations before income taxes (1,948 ) 50,571 130,585 189,131 Income tax expense (390 ) (752 ) (2,354 ) (2,753 ) Net income (loss) (2,338 ) 49,819 128,231 186,378 Less income allocated to non-controlling interests (1,866 ) (1,856 ) (5,629 ) (5,399 ) Net income (loss) attributable to common shareholders ($4,204 ) $47,963 $122,602 $180,979 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Net income (loss) ($2,338 ) $49,819 $128,231 $186,378 Other comprehensive income (loss) 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 358 358 1,808 1,075 Comprehensive income (loss) (1,980 ) 50,177 130,124 187,453 Less income allocated to non-controlling interests (1,866 ) (1,856 ) (5,629 ) (5,399 ) Comprehensive income (loss) attributable to common shareholders ($3,846 ) $48,321 $124,495 $182,054 PER SHARE DATA Total earnings/(loss) per common share - basic ($0.04 ) $0.44 $1.13 $1.66 Total earnings/(loss) per common share - diluted (0.04 ) 0.44 1.13 1.66 Weighted average number of common shares outstanding: Basic 108,426 108,683 108,513 108,638 Diluted 108,426 108,706 108,547 108,659 (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 September 30, 2024, we recognized $387.2 million of property revenue which consisted of approximately $344.9 million of rental revenue and approximately $42.3 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 $390.8 million recognized for the three months ended September 30, 2023, made up of approximately $347.7 million of rental revenue and approximately $43.1 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. For the nine months ended September 30, 2024, we recognized $1,157.5 million of property revenue which consisted of approximately $1,031.0 million of rental revenue and approximately $126.5 million of amounts received under contractual terms for other services considered to be non-lease components within our lease contracts. This compared to the $1,154.4 million of property revenue recognized for the nine months ended September 30, 2023, made up of approximately $1,028.0 million of rental revenue and approximately $126.4 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 $10.7 million and $10.5 million for the three months ended September 30, 2024 and 2023, respectively and was $31.9 million and $31.3 million for the nine months ended September 30 2024 and 2023, respectively. 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 FUNDS FROM OPERATIONS Net income (loss) attributable to common shareholders ($4,204 ) $47,963 $122,602 $180,979 Real estate depreciation and amortization 142,853 141,362 427,595 420,762 Income allocated to non-controlling interests 1,866 1,856 5,629 5,399 Gain on sale of operating properties — — (43,806 ) (48,919 ) Impairment associated with land development activities 40,988 — 40,988 — Funds from operations $181,503 $191,181 $553,008 $558,221 Plus: Casualty-related expenses, net of (recoveries) 2,833 (436 ) 2,769 503 Plus: Severance — — 506 — Plus: Legal costs and settlements, net of recoveries 1,301 — 3,267 84 Plus: Loss on early retirement of debt — — 921 2,513 Plus: Expensed development & other pursuit costs 833 — 1,493 471 Plus: Advocacy contributions 1,653 — 1,653 — Less: Miscellaneous (income)/expense — — — (364 ) Core funds from operations $188,123 $190,745 $563,617 $561,428 Less: recurring capitalized expenditures (a) (25,676 ) (26,554 ) (77,296 ) (65,167 ) Core adjusted funds from operations $162,447 $164,191 $486,321 $496,261 PER SHARE DATA Funds from operations - diluted $1.65 $1.73 $5.02 $5.06 Core funds from operations - diluted 1.71 1.73 5.12 5.09 Core adjusted funds from operations - diluted 1.48 1.49 4.42 4.50 Distributions declared per common share 1.03 1.00 3.09 3.00 Weighted average number of common shares outstanding: FFO/Core FFO/Core AFFO - diluted 110,082 110,301 110,141 110,255 PROPERTY DATA Total operating properties (end of period) (b) 172 172 172 172 Total operating apartment homes in operating properties (end of period) (b) 58,250 58,961 58,250 58,961 Total operating apartment homes (weighted average) 58,453 59,153 58,344 59,010 (a) Capital expenditures necessary to help preserve the value of and maintain the functionality at our communities. (b) 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. CAMDEN BALANCE SHEETS (In thousands) (Unaudited) Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 ASSETS Real estate assets, at cost Land $1,718,185 $1,716,515 $1,706,983 $1,711,873 $1,732,804 Buildings and improvements 11,222,261 11,148,312 11,014,440 10,993,390 10,963,667 12,940,446 12,864,827 12,721,423 12,705,263 12,696,471 Accumulated depreciation (4,725,152 ) (4,582,440 ) (4,439,710 ) (4,332,524 ) (4,254,388 ) Net operating real estate assets 8,215,294 8,282,387 8,281,713 8,372,739 8,442,083 Properties under development and land 418,209 439,758 477,481 486,864 499,761 Total real estate assets 8,633,503 8,722,145 8,759,194 8,859,603 8,941,844 Accounts receivable – affiliates 8,993 9,903 10,350 11,905 12,057 Other assets, net (a) 262,339 245,625 233,137 244,182 237,594 Cash and cash equivalents 31,234 93,932 92,693 259,686 14,600 Restricted cash 11,112 7,969 8,230 8,361 8,369 Total assets $8,947,181 $9,079,574 $9,103,604 $9,383,737 $9,214,464 LIABILITIES AND EQUITY Liabilities Notes payable Unsecured $3,121,499 $3,222,569 $3,223,285 $3,385,309 $3,323,057 Secured 330,299 330,241 330,184 330,127 330,071 Accounts payable and accrued expenses 221,880 212,247 213,896 222,599 211,759 Accrued real estate taxes 131,693 90,702 46,612 96,517 128,794 Distributions payable 113,505 113,506 113,556 110,427 110,463 Other liabilities (b) 214,027 183,377 182,443 186,987 175,341 Total liabilities 4,132,903 4,152,642 4,109,976 4,331,966 4,279,485 Equity Common shares of beneficial interest 1,158 1,157 1,157 1,156 1,156 Additional paid-in capital 5,927,477 5,924,608 5,919,851 5,914,868 5,911,627 Distributions in excess of net income attributable to common shareholders (826,725 ) (710,633 ) (641,663 ) (613,651 ) (727,117 ) Treasury shares (359,989 ) (359,975 ) (356,880 ) (320,364 ) (320,702 ) Accumulated other comprehensive income/(loss) (c) 641 283 (78 ) (1,252 ) (699 ) Total common equity 4,742,562 4,855,440 4,922,387 4,980,757 4,864,265 Non-controlling interests 71,716 71,492 71,241 71,014 70,714 Total equity 4,814,278 4,926,932 4,993,628 5,051,771 4,934,979 Total liabilities and equity $8,947,181 $9,079,574 $9,103,604 $9,383,737 $9,214,464 (a) Includes net deferred charges of: $3,244 $3,703 $4,286 $5,879 $6,481 (b) Includes deferred revenues of: $830 $894 $958 $1,030 $1,167 (c) Represents the unrealized net loss and unamortized prior service costs on post retirement obligations, and unrealized net gain/(loss) on cash flow hedging activities. 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 items not considered part of our core business operations. We consider Core FFO to be a helpful supplemental measure of operating performance as it excludes not only depreciation expense of real estate assets, but it also 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net income (loss) attributable to common shareholders ($4,204 ) $47,963 $122,602 $180,979 Real estate depreciation and amortization 142,853 141,362 427,595 420,762 Income allocated to non-controlling interests 1,866 1,856 5,629 5,399 Gain on sale of operating properties — — (43,806 ) (48,919 ) Impairment associated with land development activities 40,988 — 40,988 — Funds from operations $181,503 $191,181 $553,008 $558,221 Plus: Casualty-related expenses, net of (recoveries) 2,833 (436 ) 2,769 503 Plus: Severance — — 506 — Plus: Legal costs and settlements, net of recoveries 1,301 — 3,267 84 Plus: Loss on early retirement of debt — — 921 2,513 Plus: Expensed development & other pursuit costs 833 — 1,493 471 Plus: Advocacy contributions 1,653 — 1,653 — Less: Miscellaneous (income)/expense — — — (364 ) Core funds from operations $188,123 $190,745 $563,617 $561,428 Less: recurring capitalized expenditures (25,676 ) (26,554 ) (77,296 ) (65,167 ) Core adjusted funds from operations $162,447 $164,191 $486,321 $496,261 Weighted average number of common shares outstanding: EPS diluted 108,426 108,706 108,547 108,659 FFO/Core FFO/ Core AFFO diluted 110,082 110,301 110,141 110,255 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Total Earnings Per Common Share - Diluted ($0.04 ) $0.44 $1.13 $1.66 Real estate depreciation and amortization 1.30 1.27 3.87 3.79 Income allocated to non-controlling interests 0.02 0.02 0.05 0.05 Gain on sale of operating property — — (0.40 ) (0.44 ) Impairment associated with land development activities 0.37 — 0.37 — FFO per common share - Diluted $1.65 $1.73 $5.02 $5.06 Plus: Casualty-related expenses, net of (recoveries) 0.02 — 0.03 — Plus: Severance — — — — Plus: Legal costs and settlements, net of recoveries 0.01 — 0.03 — Plus: Loss on early retirement of debt — — 0.01 0.03 Plus: Expensed development & other pursuit costs 0.01 — 0.01 — Plus: Advocacy contributions 0.02 — 0.02 — Less: Miscellaneous (income)/expense — — — — Core FFO per common share - Diluted $1.71 $1.73 $5.12 $5.09 Less: recurring capitalized expenditures (0.23 ) (0.24 ) (0.70 ) (0.59 ) Core AFFO per common share - Diluted $1.48 $1.49 $4.42 $4.50 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: 4Q24 Range 2024 Range Low High Low High Expected earnings per common share - diluted $0.34 $0.38 $1.46 $1.50 Expected real estate depreciation and amortization 1.29 1.29 5.17 5.17 Expected income allocated to non-controlling interests 0.02 0.02 0.07 0.07 Expected (gain) on sale of operating properties — — (0.40 ) (0.40 ) Impairment associated with land development activities — — 0.37 0.37 Expected FFO per share - diluted $1.65 $1.69 $6.67 $6.71 Anticipated Adjustments to FFO 0.03 0.03 0.12 0.12 Expected Core FFO per share - diluted $1.68 $1.72 $6.79 $6.83 Note: This table contains forward-looking statements. Please see paragraph regarding forward-looking statements earlier in this document. 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 property operating and maintenance expenses less real estate taxes. 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 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. 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 September 30, Nine months ended September 30, 2024 2023 2024 2023 Net income (loss) ($2,338 ) $49,819 $128,231 $186,378 Less: Fee and asset management income (1,707 ) (1,077 ) (5,597 ) (2,373 ) Less: Interest and other income (1,076 ) (64 ) (4,442 ) (557 ) Less: Income/(loss) on deferred compensation plans (8,248 ) 3,339 (15,140 ) (5,417 ) Plus: Property management expense 9,817 7,891 29,057 24,939 Plus: Fee and asset management expense 623 444 1,541 1,277 Plus: General and administrative expense 18,845 15,543 53,692 46,762 Plus: Interest expense 32,486 33,006 97,250 99,427 Plus: Depreciation and amortization expense 145,844 144,359 436,540 429,857 Plus: Expense/(benefit) on deferred compensation plans 8,248 (3,339 ) 15,140 5,417 Plus: Impairment associated with land development activities 40,988 — 40,988 — Plus: Loss on early retirement of debt — — 921 2,513 Less: Gain on sale of operating property — — (43,806 ) (48,919 ) Plus: Income tax expense 390 752 2,354 2,753 NOI $243,872 $250,673 $736,729 $742,057 "Same Property" Communities $234,590 $234,648 $704,705 $697,476 Non-"Same Property" Communities 9,053 8,157 27,131 21,451 Development and Lease-Up Communities 1,474 (12 ) 1,925 (19 ) Disposition/Other (1,245 ) 7,880 2,968 23,149 NOI $243,872 $250,673 $736,729 $742,057 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 1.33 for 9 month results. A reconciliation of net income to EBITDAre and adjusted EBITDAre is provided below: Three months ended September 30, Nine months ended September 30, 2024 2023 2024 2023 Net income (loss) ($2,338 ) $49,819 $128,231 $186,378 Plus: Interest expense 32,486 33,006 97,250 99,427 Plus: Depreciation and amortization expense 145,844 144,359 436,540 429,857 Plus: Income tax expense 390 752 2,354 2,753 Less: Gain on sale of operating property — — (43,806 ) (48,919 ) Plus: Impairment associated with land development activities 40,988 — 40,988 — EBITDAre $217,370 $227,936 $661,557 $669,496 Plus: Casualty-related expenses, net of (recoveries) 2,833 (436 ) 2,769 503 Plus: Severance — — 506 — Plus: Legal costs and settlements, net of recoveries 1,301 — 3,267 84 Plus: Loss on early retirement of debt — — 921 2,513 Plus: Expensed development & other pursuit costs 833 — 1,493 471 Plus: Advocacy contributions 1,653 — 1,653 — Less: Miscellaneous (income)/expense — — — (364 ) Adjusted EBITDAre $223,990 $227,500 $672,166 $672,703 Annualized Adjusted EBITDAre $895,960 $910,000 $896,221 $896,937 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: Net Debt: Average monthly balance for the Average monthly balance for the Three months ended September 30, Nine months ended September 30, 2024 2023 2024 2023 Unsecured notes payable $3,193,365 $3,374,176 $3,219,724 $3,336,040 Secured notes payable 330,280 330,052 330,222 412,290 Total debt 3,523,645 3,704,228 3,549,946 3,748,330 Less: Cash and cash equivalents (43,414 ) (8,338 ) (54,702 ) (8,546 ) Net debt $3,480,231 $3,695,890 $3,495,244 $3,739,784 Net Debt to Annualized Adjusted EBITDAre: Three months ended September 30, Nine months ended September 30, 2024 2023 2024 2023 Net debt $3,480,231 $3,695,890 $3,495,244 $3,739,784 Annualized Adjusted EBITDAre 895,960 910,000 896,221 896,937 Net Debt to Annualized Adjusted EBITDAre 3.9x 4.1x 3.9x 4.2x

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