EX-99.1 2 exhibit991earningsrelease1.htm EX-99.1 Document

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CAMDEN PROPERTY TRUST ANNOUNCES FIRST QUARTER 2024 OPERATING RESULTS

Houston, Texas (May 2, 2024) - Camden Property Trust (NYSE:CPT) (the "Company") announced today operating results for the three months ended March 31, 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 months ended March 31, 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 March 31,
Per Diluted Share20242023
EPS$0.77$0.39
FFO$1.67$1.66
Core FFO$1.70$1.66
Core AFFO$1.50$1.50

Three Months Ended1Q24 Guidance1Q24 Guidance
Per Diluted ShareMarch 31, 2024MidpointVariance
EPS$0.77$0.76$0.01
FFO$1.67$1.64$0.03
Core FFO$1.70$1.67$0.03

Quarterly GrowthSequential Growth
Same Property Results1Q24 vs. 1Q231Q24 vs. 4Q23
Revenues2.5%0.5%
Expenses2.9%2.3%
Net Operating Income ("NOI")2.3%(0.5)%

Same Property Results1Q241Q234Q23
Occupancy95.0%95.3%94.9%

"We are pleased to report strong performance for the quarter, with earnings and same property growth exceeding expectations," said Richard J. Campo, Camden’s Chairman and CEO. "We have revised our 2024 outlook for property operating expense growth downward from 4.50% to 3.25% at the midpoint of our guidance range as a result of favorable real estate tax valuations, lower core insurance claims, and the successful renewal of our insurance policies on May 1st. However, given the recent rise in interest rates and lowered odds of future rate cuts this year, we expect to incur higher than anticipated interest expense for the remainder of the year. As a result of these events, we are maintaining our full-year 2024 guidance of $6.74 per share for Core FFO at the midpoint of our range."

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)
April 2024*April 20231Q241Q23
Signed New Lease Rates(1.8)%2.7%(4.1)%2.0%
Signed Renewal Rates3.4%6.0%3.4%7.0%
Signed Blended Lease Rates0.6%4.1%(0.9)%4.0%
1

New Lease and Renewal Data - Date Effective (2)
April 2024*April 20231Q241Q23
Effective New Lease Rates(3.4)%1.8%(4.4)%2.0%
Effective Renewal Rates3.5%7.2%3.8%7.8%
Effective Blended Lease Rates(0.2)%3.9%(1.1)%4.5%
*Preliminary data as of April 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, Bad Debt and Turnover DataApril 2024*April 20231Q241Q23
Occupancy95.2%95.4%95.0%95.3%
Bad Debt0.6%1.9%0.8%1.7%
Annualized Gross Turnover47%47%45%44%
Annualized Net Turnover36%37%34%36%
*Preliminary data as of April 30, 2024

Development Activity
During the quarter, lease-up was completed at Camden NoDa in Charlotte, NC. Additionally, leasing began at Camden Long Meadow Farms in Richmond, TX and leasing continued at Camden Durham in Durham, NC and Camden Woodmill Creek in The Woodlands, TX.

Development Communities - Construction Ongoing ($ in millions)
TotalTotal% Leased
Community NameLocationHomesEstimated Costas of 4/30/2024
Camden DurhamDurham, NC420 $145.041 %
Camden Woodmill CreekThe Woodlands, TX189 75.035 %
Camden Long Meadow FarmsRichmond, TX188 80.012 %
Camden Village DistrictRaleigh, NC369 138.0
Total1,166$438.0

Disposition Activity
During the quarter, the Company disposed of a 592-apartment home community in Atlanta, GA for approximately $115.0 million and recognized a gain of approximately $43.8 million.

Capital Markets Transactions
During the quarter, the Company issued $400 million of senior unsecured notes due 2034. These ten-year notes were issued at 99.638% of par value with a coupon of 4.900%, a yield of 4.94%, and an effective interest rate of 5.06% per annum after giving effect to deducting the underwriting discounts and other expenses of the offering. Also during the quarter, the Company repaid the outstanding balance on its $300 million unsecured term loan and recognized charges in conjunction with this early retirement of debt of approximately $0.9 million, and repaid its 4.36% $250 million senior unsecured notes payable which matured in January 2024.

Share Repurchase
During the quarter, Camden repurchased 471,282 common shares at an average price of $96.91 per share for a total of $45.7 million. The Company had approximately $454.3 million remaining under its stock repurchase program as of March 31, 2024. Subsequent to quarter-end, Camden repurchased 44,692 common shares at an average price of $96.52 per share for a total of $4.3 million. Year to date, Camden repurchased 515,974 common shares at an average price of $96.88 for approximately $50.0 million. The Company currently has approximately $450.0 million remaining under its stock repurchase program.

Liquidity Analysis
As of March 31, 2024, Camden had nearly $1.3 billion of liquidity comprised of approximately $92.7 million in cash and cash equivalents, and nearly $1.2 billion of availability under its unsecured credit facility. At quarter-end, the Company had $97.4 million left to fund under its existing wholly-owned development pipeline.

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Earnings Guidance
Camden provided initial earnings guidance for 2024 based on its current and expected views of the apartment market and general economic conditions, and provided guidance for second quarter 2024 as detailed below. Expected EPS excludes gains, if any, from future real estate transactions.

2Q2420242024 Midpoint
Per Diluted ShareRangeRangeCurrentPriorChange
EPS$0.34 - $0.38$1.74 - $1.98$1.86$1.87$(0.01)
FFO$1.64 - $1.68$6.57 - $6.81$6.69$6.69$0.00
Core FFO(1)
$1.65 - $1.69$6.62 - $6.86$6.74$6.74$0.00
(1) The Company's 2024 core FFO guidance includes approximately $0.05 per share of non-core adjustments for casualty-related expenses, legal costs, loss on early retirement of debt, severance, and expensed pursuit costs.

20242024 Midpoint
Same Property Growth GuidanceRangeCurrentPriorChange
Revenues0.75% - 2.25%1.50%1.50%0.00%
Expenses2.75% - 3.75%3.25%4.50%(1.25)%
NOI(0.75%) - 1.75%0.50%0.00%0.50%

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, May 3, 2024 at 10:00 AM CT
Domestic Dial-In Number: (888) 317-6003; International Dial-In Number: (412) 317-6061; Passcode: 0739105
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 171 properties containing 58,061 apartment homes across the United States. Upon completion of 4 properties currently under development, the Company’s portfolio will increase to 59,227 apartment homes in 175 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.
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CAMDENOPERATING RESULTS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended March 31,
20242023
OPERATING DATA
Property revenues (a)
$383,141$378,163
Property expenses
Property operating and maintenance89,044 85,285 
Real estate taxes49,501 49,396 
Total property expenses138,545 134,681 
Non-property income
Fee and asset management1,284 578 
Interest and other income1,768 62 
Income on deferred compensation plans5,819 5,912 
Total non-property income8,871 6,552 
Other expenses
Property management9,394 8,297 
Fee and asset management443 413 
General and administrative16,693 15,356 
Interest32,537 32,843 
Depreciation and amortization144,802 142,444 
Expense on deferred compensation plans5,819 5,912 
Total other expenses209,688 205,265 
Loss on early retirement of debt(921)— 
Gain on sale of operating property43,806 — 
Income from continuing operations before income taxes86,664 44,769 
Income tax expense(905)(1,150)
Net income85,759 43,619 
Less income allocated to non-controlling interests(1,870)(1,702)
Net income attributable to common shareholders$83,889 $41,917 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income$85,759$43,619
Other comprehensive income
Unrealized gain on cash flow hedging activities85 — 
Reclassification of net loss on cash flow hedging activities, prior service cost and net loss on post retirement obligation1,089 359 
Comprehensive income86,933 43,978 
Less income allocated to non-controlling interests(1,870)(1,702)
Comprehensive income attributable to common shareholders$85,063 $42,276 
PER SHARE DATA
Total earnings per common share - basic$0.77 $0.39 
Total earnings per common share - diluted0.77 0.39 
Weighted average number of common shares outstanding:
     Basic108,706 108,568 
     Diluted108,729 108,604 

(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 March 31, 2024, we recognized $383.1 million of property revenue which consisted of approximately $341.5 million of rental revenue and approximately $41.6 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 $378.2 million recognized for the three months ended March 31, 2023, made up of approximately $337.2 million of rental revenue and approximately $41.0 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 March 31, 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.
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CAMDENFUNDS FROM OPERATIONS
(In thousands, except per share and property data amounts)
(Unaudited)
Three Months Ended March 31,
20242023
FUNDS FROM OPERATIONS
Net income attributable to common shareholders$83,889 $41,917 
 Real estate depreciation and amortization141,847 139,387 
 Income allocated to non-controlling interests1,870 1,702 
 Gain on sale of operating properties(43,806)— 
Funds from operations$183,800 $183,006 
Plus: Casualty-related expenses, net of recoveries
1,523 (42)
Plus: Severance
506 — 
Plus: Legal costs and settlements, net of recoveries
852 84 
Plus: Loss on early retirement of debt
921 — 
Core funds from operations$187,602 $183,048 
Less: recurring capitalized expenditures (a)
(22,025)(17,579)
Core adjusted funds from operations$165,577 $165,469 
PER SHARE DATA
Funds from operations - diluted$1.67 $1.66 
Core funds from operations - diluted1.70 1.66 
Core adjusted funds from operations - diluted1.50 1.50 
Distributions declared per common share1.03 1.00 
Weighted average number of common shares outstanding:
FFO/Core FFO/Core AFFO - diluted110,323 110,201 
PROPERTY DATA
Total operating properties (end of period) (b)
171 172 
Total operating apartment homes in operating properties (end of period) (b)
58,061 58,702 
Total operating apartment homes (weighted average)58,336 58,837 


.

(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.
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CAMDENBALANCE SHEETS
(In thousands)
(Unaudited)
Mar 31,
2024		Dec 31,
2023		Sep 30,
2023		Jun 30,
2023		Mar 31,
2023
ASSETS
Real estate assets, at cost
Land$1,706,983 $1,711,873 $1,732,804 $1,727,182 $1,722,881 
Buildings and improvements11,014,440 10,993,390 10,963,667 10,848,837 10,778,795 
12,721,423 12,705,263 12,696,471 12,576,019 12,501,676 
Accumulated depreciation(4,439,710)(4,332,524)(4,254,388)(4,113,095)(3,987,438)
Net operating real estate assets8,281,713 8,372,739 8,442,083 8,462,924 8,514,238 
Properties under development, including land477,481 486,864 499,761 516,543 515,134 
Total real estate assets8,759,194 8,859,603 8,941,844 8,979,467 9,029,372 
Accounts receivable – affiliates10,350 11,905 12,057 12,121 12,121 
Other assets, net (a)
233,137 244,182 237,594 239,958 226,394 
Cash and cash equivalents92,693 259,686 14,600 20,326 20,419 
Restricted cash8,230 8,361 8,369 8,531 6,863 
Total assets$9,103,604 $9,383,737 $9,214,464 $9,260,403 $9,295,169 
LIABILITIES AND EQUITY
Liabilities
Notes payable
Unsecured$3,223,285 $3,385,309 $3,323,057 $3,352,415 $3,232,682 
Secured330,184 330,127 330,071 330,015 515,134 
Accounts payable and accrued expenses213,896 222,599 211,759 192,613 191,468 
Accrued real estate taxes46,612 96,517 128,794 93,642 48,084 
Distributions payable113,556 110,427 110,463 110,465 110,444 
Other liabilities (b)
182,443 186,987 175,341 189,711 193,804 
Total liabilities4,109,976 4,331,966 4,279,485 4,268,861 4,291,616 
Equity
Common shares of beneficial interest1,157 1,156 1,156 1,156 1,156 
Additional paid-in capital5,919,851 5,914,868 5,911,627 5,907,828 5,903,437 
Distributions in excess of net income attributable to common shareholders(641,663)(613,651)(727,117)(666,218)(648,457)
Treasury shares(356,880)(320,364)(320,702)(320,675)(321,431)
Accumulated other comprehensive loss (c)
(78)(1,252)(699)(1,057)(1,415)
Total common equity4,922,387 4,980,757 4,864,265 4,921,034 4,933,290 
Non-controlling interests71,241 71,014 70,714 70,508 70,263 
Total equity4,993,628 5,051,771 4,934,979 4,991,542 5,003,553 
Total liabilities and equity$9,103,604 $9,383,737 $9,214,464 $9,260,403 $9,295,169 
(a) Includes net deferred charges of:$4,286 $5,879 $6,481 $7,033 $7,710 
(b) Includes deferred revenues of:$958 $1,030 $1,167 $1,239 $1,348 
(c) Represents the unrealized net loss and unamortized prior service costs on post retirement obligations, and unrealized net loss on cash flow hedging activities.
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CAMDENNON-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 (or losses) from the sale of certain real estate assets (depreciable real estate), impairments of certain real estate assets (depreciable real estate), gains or losses from change in control, 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 or losses on dispositions of depreciable real estate, 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, such as casualty-related expenses, net of recoveries, severance, legal costs and settlements, net of recoveries, loss on early retirement of debt, expensed transaction, development and other pursuit costs, net of recoveries, net below market lease amortization, pandemic resident relief, (gain)/loss on sale of land, advocacy contributions, and miscellaneous (income)/expense adjustments. 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 March 31,
20242023
Net income attributable to common shareholders$83,889 $41,917 
 Real estate depreciation and amortization141,847 139,387 
 Income allocated to non-controlling interests1,870 1,702 
 Gain on sale of operating properties(43,806)— 
Funds from operations$183,800 $183,006 
Plus: Casualty-related expenses, net of recoveries
1,523 (42)
Plus: Severance
506 — 
Plus: Legal costs and settlements, net of recoveries
852 84 
Plus: Loss on early retirement of debt
921 — 
Core funds from operations$187,602 $183,048 
Less: recurring capitalized expenditures(22,025)(17,579)
Core adjusted funds from operations$165,577 $165,469 
Weighted average number of common shares outstanding:
EPS diluted108,729 108,604 
FFO/Core FFO/ Core AFFO diluted110,323 110,201 









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CAMDENNON-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 March 31,
20242023
Total Earnings Per Common Share - Diluted$0.77 $0.39 
 Real estate depreciation and amortization1.28 1.26 
 Income allocated to non-controlling interests0.02 0.01 
 Gain on sale of operating property(0.40)— 
FFO per common share - Diluted$1.67 $1.66 
Plus: Casualty-related expenses, net of recoveries
0.01 — 
Plus: Legal costs and settlements, net of recoveries
0.01 — 
Plus: Loss on early retirement of debt
0.01 — 
Plus: Severance
0.00— 
Core FFO per common share - Diluted$1.70 $1.66 
Less: recurring capitalized expenditures(0.20)(0.16)
Core AFFO per common share - Diluted$1.50 $1.50 



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:
2Q24Range2024Range
LowHighLowHigh
Expected earnings per common share - diluted$0.34 $0.38 $1.74 $1.98 
Expected real estate depreciation and amortization1.28 1.28 5.16 5.16 
Expected income allocated to non-controlling interests0.02 0.02 0.07 0.07 
Expected (gain) on sale of operating properties— — (0.40)(0.40)
Expected FFO per share - diluted$1.64 $1.68 $6.57 $6.81 
Anticipated Adjustments to FFO0.01 0.01 0.05 0.05 
Expected Core FFO per share - diluted$1.65 $1.69 $6.62 $6.86 
Note: This table contains forward-looking statements. Please see paragraph regarding forward-looking statements earlier in this document.


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CAMDENNON-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 March 31,
20242023
Net income$85,759 $43,619 
Less: Fee and asset management income(1,284)(578)
Less: Interest and other income(1,768)(62)
Less: (Income) on deferred compensation plans(5,819)(5,912)
Plus: Property management expense9,394 8,297 
Plus: Fee and asset management expense443 413 
Plus: General and administrative expense16,693 15,356 
Plus: Interest expense32,537 32,843 
Plus: Depreciation and amortization expense144,802 142,444 
Plus: Expense on deferred compensation plans5,819 5,912 
Plus: Loss on early retirement of debt921 — 
Less: Gain on sale of operating property(43,806)— 
Plus: Income tax expense905 1,150 
NOI$244,596 $243,482 
"Same Property" Communities$234,634 $229,378 
Non-"Same Property" Communities9,143 6,170 
Development and Lease-Up Communities2 (3)
Disposition/Other817 7,937 
NOI$244,596 $243,482 
















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CAMDENNON-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 on the disposition of depreciated property, including gains (losses) on change of control, plus impairment write-downs of depreciated property with adjustments to reflect the Company’s share of EBITDAre of unconsolidated joint ventures.

Adjusted EBITDAre represents EBITDAre as further adjusted for non-core items. Adjusted EBITDAre excludes equity in (income) loss of joint ventures, (gain) loss on land, and loss on early retirement of debt. 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. Annualized Adjusted EBITDAre is Adjusted EBITDAre as reported for the period multiplied by 4 for quarter results. A reconciliation of net income to EBITDAre and adjusted EBITDAre is provided below:
Three months ended March 31,
20242023
Net income$85,759 $43,619 
Plus: Interest expense32,537 32,843 
Plus: Depreciation and amortization expense144,802 142,444 
Plus: Income tax expense905 1,150 
Less: Gain on sale of operating property(43,806)— 
EBITDAre$220,197 $220,056 
Plus: Casualty-related expenses, net of recoveries
1,523 (42)
Plus: Legal costs and settlements, net of recoveries
852 84 
Plus: Loss on early retirement of debt921 — 
Plus: Severance
506 — 
Adjusted EBITDAre$223,999 $220,098 
Annualized Adjusted EBITDAre$895,996 $880,392 


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
Three months ended March 31,
20242023
Unsecured notes payable$3,245,471 $3,269,763 
Secured notes payable330,165 515,086 
Total debt3,575,636 3,784,849 
Less: Cash and cash equivalents(66,007)(10,524)
Net debt$3,509,629 $3,774,325 
Net Debt to Annualized Adjusted EBITDAre:
Three months ended March 31,
20242023
Net debt$3,509,629 $3,774,325 
Annualized Adjusted EBITDAre895,996 880,392 
Net Debt to Annualized Adjusted EBITDAre3.9x4.3x

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