Investor Presentation September 2014 1
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 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 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. 2
Outlook for Multifamily Industry Same property net operating income ( NOI ) projected above long-term trend for next several years Strong demand from: 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 being met by strong demand 3
Favorable Demographics Trends Over 60% of this age group choose to rent 69 68 67 66 65 64 63 62 61 60 59 58 Source: Witten Advisors 4 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Echo Boom Population Aged 20-34 (millions)
Young adults steadily finding employment 1500 1000 500 0 500 1000 1500 2000 2500 5 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD Year-Year Change in 20-34 Employment (000) Source: Witten Advisors data through June 2014
Pent-up demand from young adults living at home Annual Change in U.S. Population Aged 20-34 (millions) 1.2 1.0 0.8 0.6 0.4 0.2 0.0 0.2 0.4 0.6 0.8 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Estimated Home Move-Backs Potential Pent-up Move-outs from Home 2014 2016 1.4M more young adults than usual living with parents Source: Witten Advisors 6
Homeownership Rate Returning to Lower Level 70% 69% 68% 67% 66% 65% 64% 63% 62% 2Q14 64.8% 7 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 Share of U.S. Households Who Own Home Source: Witten Advisors seasonally adjusted homeownership rate
Negative Sentiment Toward Home Ownership Many people choosing to rent rather than buy Moveout rates from apartment residents purchasing homes have declined dramatically (23% at peak vs. 15% in 2Q14 for Camden s portfolio) Strong credit scores and significant down payments now required by mortgage lenders 8
Manageable Levels of New Supply Multifamily starts expected to peak in late 2014 or early 2015 then 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 9
Multifamily Starts 300,000 250,000 200,000 150,000 100,000 50,000 Actual Starts Projected Deficit of 450,000 starts from 2009-2012 0 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 5+ Rental Starts, trailing 12 months Source: Witten Advisors 10
Demand projected to exceed supply in most markets 2-year average ratio of estimated job growth to multifamily completions (2014-2015) 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Long-term Equilibrium Ratio of 5:1 Las Vegas Phoenix San Diego Orange County Los Angeles Tampa Atlanta Orlando CPT Average Dallas SE Florida Denver Houston Charlotte Raleigh Austin Washington, DC Ratio of Jobs to Completions Source: Witten Advisors and Axiometrics 11
Strategy & Portfolio 12
Camden s Strategy Maximize portfolio cash flow growth through excellent customer service Create value through development and redevelopment Recycle capital through acquisitions and dispositions Maintain strong balance sheet with low leverage 13
Camden s Portfolio 183 communities containing 64,152 apartment homes including development properties High-quality properties with average age of 12 years one of the youngest in sector Same property occupancy 96.3% (as of 9/7/14) 14
Geographic Diversity & Market Balance Las Vegas 6.3% Denver 4.1% Washington, DC 16.0% LA/Orange County 7.0% San Diego/Inland Empire 3.8% Phoenix 3.4% Dallas 7.0% Austin 2.7% Houston 12.8% Corpus Christi 1.9% Atlanta 6.0% Tampa 6.8% Raleigh 4.2% Charlotte 5.5% Orlando 5.8% Southeast Florida 6.7% Percentage of NOI by Market 2Q14 Actual (Including pro-rata share of NOI from JV communities) 15
Growth Drives Results Top 25 Metro Areas For Estimated Gains: 2013-2018 Employment Growth (in thousands) Population Growth (in thousands) Rank Metro area Gain 1 Houston-Baytown TX 471.4 2 New York-Wayne NY-NJ 383.7 3 Dallas-Plano TX 377.8 4 Los Angeles-Long Beach CA 366.7 5 Atlanta-Sandy Springs GA 360.6 6 Chicago-Naperville IL 218.7 7 Phoenix-Mesa-Scottsdale AZ 202.6 8 Orlando FL 168.4 9 Denver-Aurora CO 167.3 10 Austin-Round Rock TX 165.8 11 Philadelphia PA 163.3 12 Seattle-Bellevue WA 155.3 13 Washington-Arlington DC-VA-MD-WV 152.8 14 San Antonio TX 146.6 15 Fort Worth-Arlington TX 144.9 16 Minneapolis-St. Paul MN-WI 139.6 17 Santa Ana-Anaheim CA 130.0 18 Riverside-San Bernardino CA 124.7 19 San Diego-Carlsbad CA 122.8 20 Charlotte-Gastonia NC-SC 121.8 21 Las Vegas-Paradise NV 120.7 22 Portland-Vancouver OR-WA 118.6 23 Baltimore-Towson MD 118.0 24 Tampa-St. Petersburg FL 117.9 25 San Francisco-San Mateo CA 112.5 Rank Metro area Gain 1 Houston-Baytown TX 569.5 2 Phoenix-Mesa-Scottsdale AZ 495.6 3 Dallas-Plano TX 478.2 4 Atlanta-Sandy Springs GA 465.4 5 Los Angeles-Long Beach CA 371.0 6 New York-Wayne NY-NJ 307.7 7 Orlando FL 298.7 8 Washington-Arlington DC-VA-MD-WV 272.8 9 Riverside-San Bernardino CA 259.8 10 Austin-Round Rock TX 248.3 11 Denver-Aurora CO 246.9 12 Fort Worth-Arlington TX 245.8 13 Las Vegas-Paradise NV 235.0 14 San Antonio TX 219.6 15 Charlotte-Gastonia NC-SC 213.9 16 San Diego-Carlsbad CA 184.7 17 Seattle-Bellevue WA 170.1 18 West Palm Beach-Boynton Beach FL 168.0 19 Tampa-St. Petersburg FL 161.0 20 Minneapolis-St. Paul MN-WI 159.4 21 Fort Lauderdale-Pompano Beach FL 148.5 22 Miami-Miami Beach FL 145.1 23 Santa Ana-Anaheim CA 141.2 24 Raleigh-Cary NC 136.9 25 Chicago-Naperville IL 124.2 Over 98% of Camden s NOI is derived from these markets Source: Moody s Analytics July 2014. Highlighted represent Camden markets. 16
New Leases / Renewals Average change in same property new lease and renewal rates vs. expiring lease rates when signed 8% 6% 4% 2% 0% -2% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14* * July 1 August 31 results New Leases Renewals 17
Rents Continue to Rise Average Monthly In-Place Rents (Camden s Same Property Portfolio) $1,200 $1,186 $1,180 $1,167 $1,173 $1,160 $1,160 $1,140 $1,141 $1,128 $1,120 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 18
Household Income Growing Average Household Income for Camden s Residents $85,000 $82,000 $83,000 $80,000 $79,700 $79,700 $77,900 $75,800 $75,000 $70,000 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 19
Rent-to-Income Ratios Favorable Average Rent-to-Income Ratio for Camden s Residents 18% 17.7% 17.7% 17.4% 17.3% 17.2% 17.2% 17% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 20
Occupancy by Market Current Same Property Occupancy (as of 9/7/14) 99% 98% 97% 96% 95% 94% 93% 21 Charlotte Austin Washington, DC Southeast Florida Atlanta CPT Average Denver Houston Phoenix Orlando Las Vegas Tampa Southern California Raleigh Dallas
3-Year Average Same Property Growth vs. Peers Revenue Growth (2011-2013 Average) 6% 4% 2% 0% CPT ESS PPS AVB EQR UDR BRE AEC MAA HME AIV NOI Growth (2011-2013 Average) 8% 6% 4% 2% 0% CPT ESS PPS AVB EQR HME UDR AEC AIV BRE MAA Source: Company Financial Reports 22
2014 Reported Same Property Growth vs. Peers Quarterly (2Q14 vs. 2Q13) Revenue Growth Quarterly (2Q14 vs. 2Q13) NOI Growth 8% 7% 6% 5% 4% 3% 2% 1% 0% ESS CPT UDR AIV EQR AVB PPS AEC MAA HME 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% ESS AIV UDR EQR CPT AEC AVB HME MAA PPS Year-to-Date (2014 vs. 2013) Revenue Growth Year-to-Date (2014 vs. 2013) NOI Growth 8% 7% 6% 5% 4% 3% 2% 1% 0% ESS CPT UDR AIV EQR AVB AEC MAA PPS HME 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% ESS AIV CPT UDR EQR AEC AVB MAA PPS HME Source: Company Financial Reports 23
2014 Expected Same Property Growth vs. Peers Revenue Guidance Midpoint of Range 10% 8% 6% 4% 2% 0% ESS CPT AIV EQR UDR AVB MAA HME PPS AEC NOI Guidance Midpoint of Range 10% 8% 6% 4% 2% 0% ESS UDR AIV CPT EQR MAA AVB AEC HME PPS Source: Company Financial Reports 24
2014 Guidance Original Guidance Earnings Guidance Earnings as of 1/30/14 as of 7/31/14 FFO per share $4.10 - $4.30 $4.20 - $4.30 EPS per share $1.44 - $1.64 $1.57 - $1.67 Same Property Performance Revenue Growth 3.50% - 4.50% 4.00% - 4.60% Expense Growth 3.25% - 4.25% 3.40% - 4.00% NOI Growth 3.25% - 5.25% 4.25% - 5.25% Average Occupancy 95% unchanged Transactions Acquisitions $50 - $150 million unchanged Dispositions $250 - $350 million unchanged Dispositions (Joint Ventures) $100 - $450 million $66 million Development Starts $150 - $300 million unchanged 25
Acquisitions, Dispositions & Development 26
2013 Acquisitions Acquired 3 communities for $225M Camden Vantage Atlanta, GA Year Built 2010 Camden Post Oak Houston, TX Year Built 2003 Camden Sotelo Tempe, AZ Year Built 2008/2012 27
2013/2014 Disposition Activity Disposed of 12 wholly-owned communities in 2013 with an average age of 25 years for $329M Disposed of 16 joint venture communities in 2013 with an average age of 19 years for $269M Disposed of 2 joint venture communities in February 2014 for $66M 2014 guidance includes dispositions of $250M-$350M for wholly-owned communities which are currently being marketed for sale 28
Development Activity Completed 65 communities with over 23,650 apartment homes for total cost of $2.9B since IPO Development projects $100M recently stabilized at projected 2014 yield of 8.6% value creation of nearly $60M $1.1B currently under construction or in lease-up estimated value creation of $250M $700M additional projects in future development pipeline 29
Current Development Pipeline ($ in millions) Estimated Total Total Initial Construction Stabilized % Wholly-Owned Projects Location Homes Cost Occupancy Completion Operations Leased (1) Camden NoMa Washington, DC 321 $110 4Q13 2Q14 2Q15 82% Camden Lamar Heights Austin, TX 314 47 2Q14 4Q14 4Q15 17% Camden Flatirons Denver, CO 424 78 2Q14 4Q14 4Q16 17% Camden La Frontera Round Rock, TX 300 36 2Q14 1Q15 4Q15 16% Camden Foothills Scottsdale, AZ 220 50 3Q14 1Q15 3Q15 13% Camden Boca Raton Boca Raton, FL 261 54 3Q14 4Q14 4Q15 13% Camden Paces Atlanta, GA 379 110 2Q14 2Q15 4Q16 5% Camden Hayden Tempe, AZ 234 48 4Q14 2Q15 3Q15 - Camden Glendale Glendale, CA 303 115 1Q15 3Q15 1Q16 - Camden Gallery Charlotte, NC 323 58 1Q15 4Q15 2Q16 - Camden Victory Park Dallas, TX 423 82 3Q15 1Q16 1Q18 - Camden Chandler Chandler, AZ 380 75 2Q15 2Q16 2Q17 - The Camden Los Angeles, CA 287 145 2Q16 4Q16 2Q17 - Subtotal 4,169 $1,008 Joint Venture Project Camden Southline Charlotte, NC 266 $48 1Q15 3Q15 4Q15 - Grand Total 4,435 $1,056 (1) As of 9/7/14 30
Development Camden Flatirons Denver, CO Camden La Frontera Round Rock, TX Camden NoMa Washington, DC Camden Lamar Heights Austin, TX Camden Paces Atlanta, GA 31
Development Camden Foothills Scottsdale, AZ Camden Hayden Tempe, AZ Camden Gallery Charlotte, NC Camden Boca Raton Boca Raton, FL Camden Glendale Glendale, CA Camden Victory Park Dallas, TX 32
Development Camden Chandler Chandler, AZ The Camden Los Angeles, CA Camden Southline (JV) Charlotte, NC 33
Future Development Projects ($ in millions) Total Projected Estimated Project Location Homes Cost Camden McGowen Station Houston, TX 320 $82 Camden Lincoln Station Denver, CO 267 51 Camden Conte I/II Houston, TX 519 170 Camden Shady Grove Montgomery County, MD 457 115 Camden Buckhead Atlanta, GA 336 80 Camden NoMa II Washington, DC 405 124 Camden Atlantic Plantation, FL 286 62 Total 2,590 $684 34
Capital Structure & Liquidity 35
Strong Capital Structure ($ in millions as of 7/31/14) Unsecured Lines of Credit $237 Mortgages $931 Senior Unsecured Notes $1,589 Equity * $6,806 Total Market Capitalization = $9.6 Billion 5.7x debt-to-ebitda 4.1% weighted average interest rate on all debt 83.8% fixed-rate debt 66.2% unsecured debt Manageable debt maturities over next several years 6.0 years weighted average maturity of debt * Based on closing share price of $75.49 on 9/8/14 36
Manageable Debt Maturities Future scheduled maturities excluding Line of Credit (as of 7/31/14) ($ in millions) $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 $1,814.4 $252.0 $249.2 $177.6 $24.5 $2.2 2014 2015 2016 2017 2018 Thereafter 37
Liquidity (as of 7/31/14) $272M availability under unsecured credit facilities $83M equity issuance available under ATM program Sufficient liquidity to meet near-term capital needs Unencumbered asset pool of approximately $5.8 billion 38
Summary 39
Why Camden? Experienced management team with proven history of performance and sound business plan Consistent long-term focus and commitment to highgrowth markets Strong balance sheet with ample liquidity Well-positioned to capitalize on future opportunities Ranked #11 by FORTUNE Magazine on list of 100 Best Companies to Work For in America 40
Definitions & Disclosure FFO The National Association of Real Estate Investment Trusts ( NAREIT ) currently defines FFO as net income attributable to common shareholders computed in accordance with generally accepted accounting principles ( GAAP ), excluding gains or losses from depreciable operating property sales, plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Camden s definition of diluted FFO also assumes conversion of all dilutive convertible securities, including noncontrolling interests, which are convertible into common shares. The Company considers FFO to be an appropriate supplemental measure of operating performance because, by excluding gains or losses on dispositions of operating properties and excluding depreciation, FFO can help one compare the operating performance of a company's real estate investments between periods or as compared to different companies. 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. EBITDA EBITDA is defined by the Company as earnings before interest, taxes, depreciation and amortization, including net operating income from discontinued operations, 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 discontinued operations, 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. 41
Non-GAAP 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: 2014 Range Low High Expected earnings per common share - diluted $1.57 $1.67 Expected real estate depreciation 2.56 2.56 Expected adjustments for unconsolidated joint ventures 0.06 0.06 Expected income allocated to non-controlling interests 0.05 0.05 (Gain) on sale of unconsolidated joint venture property (0.04) (0.04) Expected FFO per share - diluted $4.20 $4.30 42
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