Citi Global Property CEO Conference March 2016 1
Table of Contents Company Overview 3 6 Multifamily Fundamentals 7 11 Camden s Portfolio 12 18 Real Estate Transactions 19 25 Capital Structure & Liquidity 26 29 Summary 30 31 Appendix 32 38 2016 Guidance Non-GAAP Financial Measures Definitions & Reconciliations Forward-Looking Statements 2
Company Overview 3
About Camden Publicly traded since 1993 S&P 400 Company Current dividend yield - 3.8% (1) Net Asset Value (NAV) per Share (2) - $88 Total Market Capitalization - $10 billion Nearly 60,000 apartment homes located in 15 major markets across the U.S. (1) Based on closing share price of $79.19 on 3/11/16 (2) Average NAV per covering analysts 4
Camden s Strategy Operate in high growth markets Maximize portfolio cash flow growth Recycle capital through acquisitions and dispositions Create value through development and redevelopment Maintain strong balance sheet with low leverage 5
Earnings & Dividend Growth Funds from Operations ( FFO ) per Share $5.00 $4.00 $3.00 $2.00 $1.00 2011 2012 2013 2014 2015 2016* Dividends per Share $5.00 $4.00 $3.00 $2.00 $1.00 2011 2012 2013 2014 2015 2016* * 2016 Guidance provided 1/28/16 6
Multifamily Fundamentals 7
Outlook for Multifamily Industry Same property net operating income ( NOI ) projected above long-term trend for next several years Strong demand from: o o o o Growing Echo Boom population with high propensity to rent Large share of jobs going to the 20-34 age cohort Pent-up demand from young adults living at home or with roommates Homeownership rate declining steadily and negative sentiment toward home ownership New supply still being met by strong demand Echo Boom Population Aged 20-34 (millions) 70 68 66 64 62 60 58 Favorable Demographics Trends* Over 60% of this age group choose to rent 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Year-Year Change in 20-34 Employment (000) 1500 1000 500 0 500 1000 1500 2000 2500 Young Adults Steadily Finding Employment* 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Annual Change in U.S. Population Aged 20-34 (millions) Pent-Up Demand From Young Adults Living At Home* 1.5 1.0 0.5 0.0 0.5 1.0 Annual Change in 20-34 Population Potential Pent-Up Moveouts from Home 2014: 1.3M more young adults than Estimated usual living Home with parents Move-Backs 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 *Source: Witten Advisors data through February 2016 8
Negative Sentiment Toward Home Ownership Many people choosing to rent rather than buy Moveout rates from apartment residents purchasing homes remain low (23% at peak vs. 14% in 2015 for Camden s portfolio) Strong credit scores and significant down payments required by mortgage lenders Young adults carrying significant amount of student debt Homeownership Rate Share of U.S. Households Who Own Home 70% 68% 66% 64% 62% 1Q90 1Q91 1Q92 1Q93 1Q94 1Q95 1Q96 1Q97 1Q98 1Q99 1Q00 1Q01 1Q02 1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11 1Q12 1Q13 1Q14 1Q15 4Q15* 63.7% *Source: Witten Advisors seasonally adjusted homeownership rate 9
Manageable Levels of Supply Multifamily starts expected to peak in 2016 then begin to decline Rising construction costs and interest rates make future development starts more challenging Single family rentals don t compete with well-located, amenity-rich apartment homes 5+ Rental Starts, trailing 12 months 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 Actual Starts Projected Deficit of 450,000 starts from 2009-2012 1Q92 1Q93 1Q94 1Q95 1Q96 1Q97 1Q98 1Q99 1Q00 1Q01 1Q02 1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11 1Q12 1Q13 1Q14 1Q15 1Q16 1Q17 1Q18 1Q19 Source: Witten Advisors 10
Demand projected to exceed supply in most markets 2-year average ratio of estimated job growth to multifamily completions (2016-2017) 10.0 8.0 6.0 4.0 2.0 Long-term Equilibrium Ratio of 5:1 Ratio of Jobs to Completions 0.0 Phoenix Las Vegas San Diego Atlanta Orlando Orange County Tampa Los Angeles Southeast Florida Washington, DC CPT Average Raleigh Charlotte Austin Denver Dallas Houston Source: Witten Advisors and Axiometrics 11
Camden s Portfolio 12
Portfolio Statistics 4Q15 Operating Communities 172 Apartment Homes 59,792 Total Monthly Revenues per Occupied Unit $1,501 Average Age of Portfolio (years) 12 Development Communities 8 Development Apartment Homes 2,857 Value per Home * $202,600 * Source: Green Street Advisors 13
Geographic Diversity & Market Balance Total Monthly Apartment Revenue per Same Store Occupancy Homes % of NOI (1) Occupied Home 4Q15 1Q16 (2) Washington, DC 6,405 15.3% $1,924 94.9% 94.8% Houston 8,434 12.0% 1,561 94.9% 94.3% Southern California 4,449 10.7% 1,941 95.7% 95.4% Southeast Florida 2,781 7.2% 2,032 96.9% 96.9% Atlanta 4,246 6.9% 1,491 95.6% 95.4% Dallas 5,243 6.5% 1,358 95.9% 96.3% Las Vegas 4,918 6.0% 1,046 94.9% 97.4% Tampa 3,788 5.3% 1,297 96.3% 96.0% Orlando 3,540 5.1% 1,324 95.5% 95.9% Denver 2,365 4.9% 1,623 95.0% 94.1% Charlotte 2,753 4.8% 1,448 96.2% 96.0% Phoenix 2,549 4.6% 1,398 95.8% 95.7% Raleigh 3,054 4.2% 1,201 94.7% 95.4% Austin 3,360 3.6% 1,354 95.6% 96.3% Corpus Christi, TX 1,907 2.9% 1,286 93.9% 92.4% Overall 59,792 100.0% $1,501 95.5% 95.6% (1) Including pro-rata share of NOI from joint venture communities (2) 1Q16 occupancy data through 3/6/16 14
Focus on High-Growth Markets Employment Growth (in thousands) Rank Metro area Gain 1 New York-Jersey City-White Plains NY-NJ 464.5 2 Los Angeles-Long Beach-Glendale CA 407.6 3 Dallas-Plano-Irving TX 383.6 4 Atlanta-Sandy Springs-Roswell GA 360.4 5 Phoenix-Mesa-Scottsdale AZ 317.2 6 Houston-The Woodlands-Sugar Land TX 286.7 7 Chicago-Naperville-Arlington Heights IL 283.4 8 Washington-Arlington-Alexandria DC-VA-MD-WV 214.1 9 Orlando-Kissimmee-Sanford FL 206.3 10 Seattle-Bellevue-Everett WA 169.1 11 Anaheim-Santa Ana-Irvine CA 166.9 12 Riverside-San Bernardino-Ontario CA 164.5 13 Tampa-St. Petersburg-Clearwater FL 163.5 14 San Diego-Carlsbad CA 155.5 15 San Jose-Sunnyvale-Santa Clara CA 154.7 16 Denver-Aurora-Lakewood CO 151.1 17 Minneapolis-St. Paul-Bloomington MN-WI 144.6 18 Charlotte-Concord-Gastonia NC-SC 140.7 19 Austin-Round Rock TX 134.0 20 San Francisco-Redwood City-South San Francisco CA 133.7 21 Miami-Miami Beach-Kendall FL 132.2 22 San Antonio-New Braunfels TX 131.3 23 Portland-Vancouver-Hillsboro OR-WA 128.7 24 Fort Worth-Arlington TX 128.3 25 Warren-Troy-Farmington Hills MI 127.2 Population Growth (in thousands) Rank Metro area Gain 1 Houston-The Woodlands-Sugar Land TX 677.0 2 Atlanta-Sandy Springs-Roswell GA 634.6 3 Phoenix-Mesa-Scottsdale AZ 563.5 4 Dallas-Plano-Irving TX 497.7 5 Orlando-Kissimmee-Sanford FL 387.3 6 New York-Jersey City-White Plains NY-NJ 365.6 7 Los Angeles-Long Beach-Glendale CA 354.4 8 Austin-Round Rock TX 307.5 9 Las Vegas-Henderson-Paradise NV 274.6 10 Charlotte-Concord-Gastonia NC-SC 271.7 11 Riverside-San Bernardino-Ontario CA 265.4 12 Tampa-St. Petersburg-Clearwater FL 265.0 13 Fort Worth-Arlington TX 255.2 14 Washington-Arlington-Alexandria DC-VA-MD-WV 239.4 15 Denver-Aurora-Lakewood CO 218.0 16 San Antonio-New Braunfels TX 212.1 17 Raleigh NC 204.9 18 West Palm Beach-Boca Raton-Delray Beach FL 202.4 19 Minneapolis-St. Paul-Bloomington MN-WI 195.2 20 Miami-Miami Beach-Kendall FL 192.3 21 San Diego-Carlsbad CA 190.6 22 Seattle-Bellevue-Everett WA 186.8 23 Fort Lauderdale-Pompano Beach-Deerfield Beach FL 173.1 24 Oakland-Hayward-Berkeley CA 165.9 25 Portland-Vancouver-Hillsboro OR-WA 153.8 Over 97% of Camden s NOI is derived from these markets Source: Moody s Analytics January 2016 Estimated Gains: 2014-2019 Highlighted represents Camden markets 15
Camden s Same Property Growth Revenue Growth 8% 6% 4% 2% Long-term Industry Avg ~3% 0% 2011 2012 2013 2014 2015 2016* NOI Growth 10% 8% 6% 4% 2% Long-term Industry Avg ~3% 0% 2011 2012 2013 2014 2015 2016* * 2016 Guidance provided 1/28/16 16
Same Property Revenue Growth by Market Over 5% 2015 Actual 2016 Guidance* Atlanta Atlanta Austin Austin Charlotte Dallas Dallas Denver Denver Las Vegas Las Vegas Orlando Orlando Phoenix Phoenix Raleigh Raleigh South Florida South Florida Southern California Southern California Tampa Tampa 3% - 5% -------------- Charlotte Under 3% Houston Washington, DC Houston Washington, DC * 2016 Guidance provided 1/28/16 17
New Leases & Renewals Average change in same property new lease and renewal rates vs. expiring lease rates when signed 8% 6% 4% 2% 0% 1Q15 2Q15 3Q15 4Q15 1Q16* New Leases Renewals * 1Q16 data through 3/7/16 18
Real Estate Transactions 19
Capital Recycling Since 2011 we have significantly improved the quality of our portfolio with minimal cash flow dilution $1.3B Total Acquisitions $1.7B Total Dispositions $635M $644M $757M $968M Wholly-owned Joint Ventures Wholly-owned Joint Ventures Average Age of 6 years* Average Age of 23 years* * Average age at time of purchase or sale 20
Development Value Creation Completed/ Stabilized Current Combined (2011-2015) Pipeline Total Communities 16 12 28 Apartment Homes 4,427 4,229 8,656 Total Cost $0.7B $1.1B $1.8B Market Value * $1.0B $1.4B $2.4B Value Creation $290M $330M $620M NAV Creation (per share) $3.16 $3.59 $6.75 * Value assuming current market cap rates ranging from 4.0%-5.25% for new product in our markets 21
Current Development Pipeline ($ in millions) Estimated Total Total Initial Construction Stabilized % Name Location Homes Cost Occupancy Completion Operations Leased (1) Camden Southline (JV) Charlotte, NC 266 $47 1Q15 4Q15 1Q16 93% Camden Flatirons Denver, CO 424 79 2Q14 3Q15 2Q16 89% Camden Paces Atlanta, GA 379 117 2Q14 4Q15 3Q16 81% Camden Glendale Glendale, CA 303 113 2Q15 3Q15 2Q16 76% Camden Chandler Chandler, AZ 380 73 1Q15 1Q16 4Q16 59% Camden Gallery Charlotte, NC 323 58 1Q16 3Q16 1Q17 11% Camden Victory Park Dallas, TX 423 82 1Q16 3Q16 1Q18 8% The Camden Los Angeles, CA 287 145 2Q16 4Q16 2Q17 - Camden Lincoln Station Denver, CO 267 56 4Q16 2Q17 1Q18 - Camden NoMa II Washington, DC 405 115 2Q17 4Q17 4Q19 - Camden Shady Grove Rockville, MD 457 116 1Q17 1Q18 4Q19 - Camden McGowen Station Houston, TX 315 90 4Q17 2Q18 3Q19 - Total 4,229 $1,091 Development Pipeline 72% funded with only $310M remaining to complete (2) (1) As of 3/7/16 (2) As of 12/31/15 22
Current Development Pipeline Camden Southline (JV) Charlotte, NC Camden Flatirons Denver, CO Camden Paces Atlanta, GA Camden Glendale Glendale, CA Camden Chandler Chandler, AZ Camden Gallery Charlotte, NC Camden Victory Park Dallas, TX The Camden Los Angeles, CA Camden Lincoln Station Denver, CO Camden NoMa II Washington, DC Camden Shady Grove Rockville, MD Camden McGowen Station Houston, TX 23
Future Development Projects ($ in millions) Total Projected Estimated Project Location Homes Cost Camden Washingtonian Gaithersburg, MD 365 $90 Camden North End (1) Phoenix, AZ 1,069 225 Camden Buckhead Atlanta, GA 336 80 Camden Arts District Los Angeles, CA 354 150 Camden Conte (2) Houston, TX 519 170 Camden Atlantic Plantation, FL 286 62 Total 2,929 $777 (1) Project to be developed in 3 phases (2) Project to be developed in 2 phases 24
Redevelopment Activity Target well-located 15-20 year old assets Update kitchen & bath areas, appliances, flooring, fixtures, lighting, etc. $228 million spent through 2015 $21 million budgeted for 2016 21,300 apartment homes completed at average cost of $11,400 per unit Average rental rate increase >$100 per month Over 10% cash-on-cash return Before - Kitchen Before - Bath After - Kitchen After - Bath 25
Capital Structure & Liquidity 26
Strong Capital Structure ($ in millions as of 2/29/16) Unsecured Credit Facilities $317 5.4x debt-to-ebitda Equity* $7,273 Mortgages $900 Senior Unsecured Notes $1,581 4.0% weighted average interest rate on all debt 81.3% fixed-rate debt 67.8% unsecured debt 5.5 years weighted average maturity of debt Total Market Capitalization = $10 Billion Manageable debt maturities over next several years * Based on closing share price of $79.19 on 3/11/16 27
Manageable Debt Maturities Future scheduled maturities excluding Credit Facilities (as of 2/29/16) ($ in millions) $700 $644.1 $600 $500 $500.0 $400 $350.0 $300 $246.8 $250.0 $250.0 $200 $175.0 $100 $0 $0.0 $0.0 $0.0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 28
Liquidity (as of 2/29/16) $323M availability under unsecured credit facilities $315M equity issuance available under ATM program Sufficient liquidity to meet near-term capital needs Unencumbered asset pool of approximately $6.3B Strong credit ratings o Moody s: Baa1 Positive o Fitch: BBB+ Positive o Standard & Poor s: BBB+ Stable 29
Summary 30
Why Camden? Experienced management team with proven history of performance and sound business plan Consistent long-term focus and commitment to high-growth markets Strong balance sheet with ample liquidity Well-positioned to capitalize on future opportunities Ranked #9 by FORTUNE Magazine as one of the 100 Best Companies to Work For in America 31
Appendix 32
2016 Guidance EARNINGS LOW MIDPOINT HIGH FFO per share $4.75 $4.85 $4.95 EPS per share $1.71 $1.81 $1.91 SAME PROPERTY PERFORMANCE Revenue Growth 4.10% 4.60% 5.10% Expense Growth 4.30% 4.80% 5.30% NOI Growth 3.50% 4.50% 5.50% TRANSACTIONS Acquisitions $0 million $0 million $0 million Dispositions $150 million $250 million $350 million Development Starts $0 million $100 million $200 million * 2016 Guidance provided 1/28/16 33
Non-GAAP Financial Measures Definitions & Reconciliations 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 gains (or losses) associated with previously depreciated operating properties, real estate depreciation and amortization, impairments of depreciable assets, and adjustments for unconsolidated joint ventures. Our calculation of diluted FFO also assumes conversion of all potentially dilutive securities, including certain noncontrolling interests, which are convertible into common shares. We consider FFO to be an appropriate supplemental measure of operating performance because, by excluding gains or losses on dispositions of operating properties, 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. A reconciliation of net income attributable to common shareholders to FFO is provided below: Three Months Ended Twelve Months Ended December 31, December 31, 2015 2014 2015 2014 Net income attributable to common shareholders $60,593 $178,498 $249,315 $292,089 Real estate depreciation and amortization 64,286 60,032 251,104 230,638 Adjustments for unconsolidated joint ventures 2,364 1,357 9,146 5,337 Income allocated to non-controlling interests 1,209 6,126 8,947 9,225 Gain on sale of unconsolidated joint venture properties (3,566) Gain on sale of operating properties, net of tax (18,870) (155,680) (104,015) (155,680) Funds from operations $109,582 $90,333 $414,497 $378,043 34
Non-GAAP Financial Measures Definitions & Reconciliations Adjusted FFO In addition to FFO, we compute Adjusted FFO ("AFFO") as a supplemental measure of operating performance. AFFO is calculated utilizing 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 AFFO is provided below: Three Months Ended Twelve Months Ended December 31, December 31, 2015 2014 2015 2014 Net income attributable to common shareholders $60,593 $178,498 $249,315 $292,089 Real estate depreciation and amortization 64,286 60,032 251,104 230,638 Adjustments for unconsolidated joint ventures 2,364 1,357 9,146 5,337 Income allocated to non-controlling interests 1,209 6,126 8,947 9,225 Gain on sale of unconsolidated joint venture properties (3,566) Gain on sale of operating properties, net of tax (18,870) (155,680) (104,015) (155,680) Funds from operations $109,582 $90,333 $414,497 $378,043 Less: recurring capitalized expenditures (17,429) (18,397) (64,169) (59,854) Adjusted funds from operations $92,153 $71,936 $350,328 $318,189 Weighted average number of common shares outstanding: EPS diluted 90,418 90,233 89,490 88,468 FFO/AFFO diluted 91,502 91,045 91,386 90,366 Earnings per common share - diluted $0.67 $1.98 $2.76 $3.27 FFO per common share - diluted $1.20 $0.99 $4.54 $4.18 AFFO per common share - diluted $1.01 $0.79 $3.83 $3.52 35
Non-GAAP Financial Measures Definitions & Reconciliations 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 earnings per common share (EPS). A reconciliation of the ranges provided for diluted EPS to expected FFO per diluted share is provided below: 1Q16 Range 2016 Range Low High Low High Expected earnings per common share - diluted $0.41 $0.45 $1.71 $1.91 Expected real estate depreciation and amortization 0.72 0.72 2.90 2.90 Expected adjustments for unconsolidated joint ventures 0.02 0.02 0.09 0.09 Expected income allocated to non-controlling interests 0.01 0.01 0.05 0.05 Expected FFO per share - diluted $1.16 $1.20 $4.75 $4.95 EBITDA EBITDA is defined by the Company as earnings before interest, taxes, depreciation and amortization, 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 operating properties including land, 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 Twelve Months Ended December 31, December 31, 2015 2014 2015 2014 Net income attributable to common shareholders $60,593 $178,498 $249,315 $292,089 Plus: Interest 23,740 24,846 97,312 94,906 Plus: Depreciation and amortization 65,886 61,539 257,082 237,346 Plus: Income allocated to non-controlling interests from continuing operations 1,209 6,126 8,947 9,225 Plus: Income tax expense 538 675 1,872 1,903 Less: Gain on sale of operating properties, including land (19,096) (155,680) (104,288) (159,289) Less: Impairment associated with land holdings 1,152 Less: Equity in income of joint ventures (1,681) (1,134) (6,168) (7,023) EBITDA $131,189 $114,870 $504,072 $470,309 36
Non-GAAP Financial Measures Definitions & Reconciliations 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 Twelve Months Ended December 31, December 31, 2015 2014 2015 2014 Net income attributable to common shareholders $60,593 $178,498 $249,315 $292,089 Less: Fee and asset management (1,916) (2,531) (6,999) (9,832) Less: Interest and other income (289) (80) (597) (842) Less: Income/(loss) on deferred compensation plans (1,607) (2,003) 264 (3,937) Plus: Property management 5,833 5,581 23,761 22,689 Plus: Fee and asset management 1,318 1,595 4,742 5,341 Plus: General and administrative 13,113 20,595 46,233 51,005 Plus: Interest 23,740 24,846 97,312 94,906 Plus: Depreciation and amortization 65,886 61,539 257,082 237,346 Plus: Expense/(benefit) on deferred compensation plans 1,607 2,003 (264) 3,937 Less: Gain on sale of operating properties, including land (19,096) (155,680) (104,288) (159,289) Less: Impairment associated with land holdings 1,152 Less: Equity in income of joint ventures (1,681) (1,134) (6,168) (7,023) Plus: Income tax expense 538 675 1,872 1,903 Plus: Income allocated to non-controlling interests from continuing operations 1,209 6,126 8,947 9,225 Net Operating Income (NOI) $149,248 $140,030 $571,212 $538,670 Same Property Communities $133,716 $126,462 $520,132 $494,325 Non-"Same Property" Communities 11,364 7,855 37,375 19,280 Development and Lease-Up Communities 3,438 697 8,479 994 Dispositions/Other 730 5,016 5,226 24,071 Net Operating Income (NOI) $149,248 $140,030 $571,212 $538,670 37
Forward-Looking Statements In addition to historical information, this presentation 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 (the Company ) operates, management's beliefs, and assumptions made by management. Forwardlooking 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 this presentation represent management s opinions as of the date of this presentation, and the Company assumes no obligation to update or supplement these statements because of subsequent events. 38
Notes 39
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