Camden Property Trust Announces Fourth Quarter and Full Year 2007 Operating Results

Camden Property Trust (NYSE:CPT) announced that its funds from operations ("FFO”) for the fourth quarter of 2007 totaled $0.94 per diluted share or $57.1 million, as compared to $0.87 per diluted share or $54.7 million for the same period in 2006. FFO for the twelve months ended December 31, 2007 totaled $3.66 per diluted share or $227.2 million, as compared to $3.88 per diluted share or $237.8 million for the same period in 2006. FFO for the twelve months ended December 31, 2006 included a $0.43 per diluted share impact from gain on sale of land. Net Income ("EPS”) The Company reported net income ("EPS”) of $81.0 million or $1.41 per diluted share for the fourth quarter of 2007, as compared to $31.4 million or $0.53 per diluted share for the same period in 2006. EPS for the three months ended December 31, 2007 included a $1.17 per diluted share impact from gain on sale of land and discontinued operations, net of minority interest. EPS for the three months ended December 31, 2006 included a $0.31 per diluted share impact from gain on sale of land and discontinued operations, net of minority interest. For the twelve months ended December 31, 2007, net income totaled $148.5 million or $2.51 per diluted share, as compared to $232.8 million or $3.96 per diluted share for the same period in 2006. EPS for the twelve months ended December 31, 2007 included a $1.58 per diluted share impact from gain on sale of land and discontinued operations, net of minority interest. EPS for the twelve months ended December 31, 2006 included a $3.16 per diluted share impact from gain on sale of land, operating properties, joint venture properties and discontinued operations, net of minority interest. A reconciliation of net income to FFO is included in the financial tables accompanying this press release. Same-Property Results For the 42,089 apartment homes included in consolidated same-property results, fourth quarter 2007 same-property net operating income ("NOI”) increased 5.0% compared to the fourth quarter of 2006, with revenues increasing 2.4% and expenses declining 1.7%. On a sequential basis, fourth quarter 2007 same-property NOI increased 3.4% compared to the third quarter of 2007, with revenues declining 1.4% and expenses declining 8.9% compared to the prior quarter. On a full-year basis, 2007 same-property NOI increased 5.1%, with revenue growth of 4.1% and expense growth of 2.4% compared to the same period in 2006. Same-property physical occupancy levels for the combined portfolio averaged 93.6% during the fourth quarter of 2007, compared to 94.1% in the fourth quarter of 2006 and 94.5% in the third quarter of 2007. The Company defines same-property communities as communities owned and stabilized as of January 1, 2006, excluding properties held for sale and communities under redevelopment. A reconciliation of net income to net operating income and same-property net operating income is included in the financial tables accompanying this press release. Development Activity As of December 31, 2007, Camden had four wholly-owned apartment communities which were completed and in lease-up: Camden Old Creek in San Marcos, CA, a $92.1 million project that is currently 89% leased; Camden Royal Oaks in Houston, TX, a $21.0 million project that is currently 77% leased; Camden Monument Place in Fairfax, VA, a $62.2 million project that is currently 72% leased; and Camden City Centre in Houston, TX, a $51.1 million project that is currently 58% leased. The Company also had one joint venture community which was completed and in lease-up: Camden Plaza in Houston, TX, a $40.7 million project that is currently 59% leased. The Company has four additional communities currently under construction and in lease-up: Camden Potomac Yard in Arlington, VA, a $110.0 million project that is currently 20% leased; Camden Summerfield in Landover, MD, a $68.0 million project that is currently 19% leased; Camden College Park in College Park, MD, a $139.9 million joint venture project that is currently 18% leased; and Camden Main & Jamboree in Irvine, CA, a $112.0 million joint venture project that is currently 10% leased. Camden’s current development pipeline under construction includes seven wholly-owned communities comprising 2,126 apartment homes with a total budgeted cost of $401.0 million. The Company also has four joint venture communities under construction comprising 1,257 apartment homes with a total budgeted cost of $333.7 million. Camden’s future development pipeline currently consists of 18 potential developments comprising 5,840 apartment homes and a total estimated cost of $1.5 billion. The future pipeline represents projects in the early phase of the development process for which Camden either owns the land, has an option to acquire the land or enter into a leasehold interest, or is the buyer under a long-term conditional contract. Disposition Activity During the quarter, the Company disposed of seven communities consisting of 2,124 apartment homes which were previously held for sale: Camden Ridge, a 208-home apartment community in Fort Worth, TX; Camden Terrace, a 340-home apartment community in Fort Worth, TX; Camden Glen, a 304-home apartment community in Greensboro, NC; Camden Wendover, a 216-home apartment community in Greensboro, NC; Camden Eastchase, a 220-home apartment community in Charlotte, NC; Camden Timber Creek, a 352-home apartment community in Charlotte, NC; and Camden Isles, a 484-home apartment community in Tampa, FL. The seven communities were sold for a total of $120.5 million, resulting in a gain on sale of $75.3 million. Camden also completed the sale of 0.9 acres of undeveloped land in Miami, FL during the quarter for $6.1 million, resulting in a gain on sale of $0.7 million. Properties and Land Held for Sale At December 31, 2007, Camden had two operating communities consisting of 319 apartment homes held for sale: Camden Ridgeview, a 167-home apartment community in Austin, TX; and Camden Pinnacle, a 224-home apartment community in Denver, CO. The Company also had 4.6 acres of undeveloped land in Boca Raton, FL and Dallas, TX classified as held for sale at quarter-end. Stock Repurchase During the fourth quarter of 2007, Camden repurchased 2,276,500 common shares at an average price per share of $50.50, for a total of $115.0 million. Subsequent to quarter-end, the Company repurchased an additional 690,400 common shares at an average price per share of $43.41, for a total of $30.0 million. The Company completed a total of $230.1 million of common share repurchases during 2007 and early 2008. On January 30, 2008, Camden’s Board of Trust Managers approved the repurchase of up to an additional $250.0 million of its common shares. Earnings Guidance Camden provided initial earnings guidance for 2008 based on its current and expected views of the apartment market and general economic conditions. Full-year 2008 FFO is expected to be $3.60 to $3.80 per diluted share, and full-year 2008 EPS is expected to be $0.44 to $0.66 per diluted share. First quarter 2008 earnings guidance is $0.87 to $0.91 per diluted share for FFO and $0.08 to $0.12 per diluted share for EPS. Guidance for EPS excludes potential future gains on the sale of properties. Camden intends to update its earnings guidance to the market on a quarterly basis. The Company’s initial 2008 earnings guidance is based on projections of same-property NOI growth between 2.25% and 3.25%, acquisitions of $200 -$400 million, dispositions of $175 - $380 million and new development starts of $200 -$500 million. Additional information on the Company’s 2008 financial outlook and a reconciliation of expected net income to expected FFO are included in the financial tables accompanying this press release. Conference Call The Company will hold a conference call on Friday, February 8, 2008 at 10:00 a.m. Central Time to review its fourth quarter and full-year 2007 results and discuss its outlook for future performance. To participate in the call, please dial (800) 860-2442 (domestic) or (412) 858-4600 (international) by 9:50 a.m. Central Time and request the Camden Property Trust Fourth Quarter 2007 Earnings Call, or join the live webcast of the conference call by accessing the Investor Relations section of the Company’s website at www.camdenliving.com. Supplemental financial information is available in the Investor Relations section of the Company’s website under Earnings Releases or by calling Camden’s Investor Relations Department at (800) 922-6336. 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. About Camden Camden Property Trust is a real estate company engaged in the ownership, development, acquisition, management and disposition of multifamily apartment communities. Camden owns interests in and operates 182 properties containing 63,085 apartment homes across the United States. Upon completion of 11 properties under development, the Company’s portfolio will increase to 66,468 apartment homes in 193 properties. For additional information, please contact Camden’s Investor Relations Department at (800) 922-6336 or (713) 354-2787 or access our website at www.camdenliving.com. CAMDEN OPERATING RESULTS (In thousands, except per share and property data amounts)     (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, OPERATING DATA 2007 2006 2007 2006 Property revenues Rental revenues $ 137,586 $ 131,505 $ 543,475 $ 527,554 Other property revenues   17,103     13,469     65,605     53,022   Total property revenues 154,689 144,974 609,080 580,576   Property expenses Property operating and maintenance 40,755 39,842 162,639 158,624 Real estate taxes   14,931     14,132     64,667     61,539   Total property expenses 55,686 53,974 227,306 220,163   Non-property income Fee and asset management income 1,722 3,011 8,293 14,041 Sale of technology investments - - 623 1,602 Interest and other income 4,047 3,674 8,804 9,771 Income on deferred compensation plans   (1,120 )   5,808     7,282     10,116   Total non-property income 4,649 12,493 25,002 35,530   Other expenses Property management 4,437 4,669 18,413 18,490 Fee and asset management 1,150 1,089 4,552 9,382 General and administrative 8,514 12,285 32,590 37,584 Interest 31,475 26,633 116,281 117,862 Depreciation and amortization 41,355 39,328 162,189 153,609 Amortization of deferred financing costs 957 916 3,689 3,807 Expense on deferred compensation plans   (1,120 )   5,808     7,282     10,116   Total other expenses   86,768     90,728     344,996     350,850     Income from continuing operations before gain on sale of properties, impairment loss on land, equity in income of joint ventures, minority interests and income taxes 16,884 12,765 61,780 45,093 Gain (loss) on sale of properties, including land - (104 ) - 97,452 Impairment loss on land (1,447 ) - (1,447 ) - Equity in income of joint ventures 454 642 1,526 5,156 Minority interests Distributions on perpetual preferred units (1,750 ) (1,750 ) (7,000 ) (7,000 ) Income allocated to common units and other minority interests   (1,374 )   (1,308 )   (4,729 )   (15,685 ) Income from continuing operations before income taxes 12,767 10,245 50,130 125,016 Income tax expense (478 ) - (1,868 ) - Income tax expense on sale of depreciable operating properties   -     -     (1,184 )   -   Income from continuing operations 12,289 10,245 47,078 125,016 Income from discontinued operations 1,133 2,493 7,857 10,864 Gain on sale of discontinued operations, including land 76,063 18,879 107,039 99,273 Income from discontinued operations allocated to common units   (8,509 )   (253 )   (13,517 )   (2,307 ) Net income $ 80,976   $ 31,364   $ 148,457   $ 232,846     PER SHARE DATA Net income - basic $ 1.43 $ 0.54 $ 2.55 $ 4.11 Net income - diluted 1.41 0.53 2.51 3.96 Income from continuing operations - basic 0.22 0.18 0.81 2.21 Income from continuing operations - diluted 0.21 0.17 0.80 2.14   Weighted average number of common and common equivalent shares outstanding: Basic 56,782 58,432 58,135 56,660 Diluted 57,613 59,738 59,125 59,524   PROPERTY DATA Total operating properties (end of period) (a) 182 186 182 186 Total operating apartment homes in operating properties (end of period) (a) 63,085 63,843 63,085 63,843 Total operating apartment homes (weighted average) 52,542 53,530 53,132 55,850 Total operating apartment homes - excluding discontinued operations (weighted average) 51,192 49,393 50,504 50,872     (a) Includes joint ventures and properties held for sale.   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 Twelve Months Ended December 31, December 31, FUNDS FROM OPERATIONS 2007   2006 2007   2006   Net income $ 80,976 $ 31,364 $ 148,457 $ 232,846 Real estate depreciation and amortization from continuing operations 40,534 38,682 159,031 150,982 Real estate depreciation from discontinued operations - 1,237 2,033 6,251 Adjustments for unconsolidated joint ventures 982 1,021 4,934 3,326 Income from continuing operations allocated to common units 1,444 1,004 4,279 15,230 Income from discontinued operations allocated to common units 8,509 253 13,517 2,307 Income tax expense on sale of depreciable operating properties - - 1,184 - (Gain) loss on sale of operating properties - 100 - (91,481 ) (Gain) on sale of discontinued operations (75,306 ) (18,937 ) (106,282 ) (78,823 ) (Gain) on sale of joint venture properties   -       -     -       (2,848 ) Funds from operations - diluted $ 57,139     $ 54,724   $ 227,153     $ 237,790     PER SHARE DATA Funds from operations - diluted $ 0.94 $ 0.87 $ 3.66 $ 3.88 Cash distributions 0.69 0.66 2.76 2.64   Weighted average number of common and common equivalent shares outstanding: FFO - diluted 60,597 62,994 62,120 61,253   PROPERTY DATA Total operating properties (end of period) (a) 182 186 182 186 Total operating apartment homes in operating properties (end of period) (a) 63,085 63,843 63,085 63,843 Total operating apartment homes (weighted average) 52,542 53,530 53,132 55,850 Total operating apartment homes - excluding discontinued operations (weighted average) 51,192 49,393 50,504 50,872     (a) Includes joint ventures and properties held for sale.       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) Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, 2007   2007   2007   2007   2006 ASSETS Real estate assets, at cost Land $ 730,548 $ 714,044 $ 713,084 $ 703,850 $ 693,312 Buildings and improvements   4,316,472       4,215,662       4,144,075       4,108,955       4,036,286   5,047,020 4,929,706 4,857,159 4,812,805 4,729,598 Accumulated depreciation   (868,074 )     (827,944 )     (788,318 )     (799,624 )     (762,011 ) Net operating real estate assets 4,178,946 4,101,762 4,068,841 4,013,181 3,967,587 Properties under development, including land 446,664 488,620 454,617 410,002 369,861 Investments in joint ventures 8,466 12,243 12,722 8,321 9,245 Properties held for sale, including land   25,253       73,325       72,577       32,879       32,763   Total real estate assets 4,659,329 4,675,950 4,608,757 4,464,383 4,379,456 Accounts receivable - affiliates 35,940 36,171 35,341 34,854 34,170 Notes receivable Affiliates 50,358 48,172 45,560 43,507 41,478 Other 11,565 11,565 11,565 11,565 3,855 Other assets, net (a) 126,996 129,810 136,524 118,329 121,336 Cash and cash equivalents 897 1,207 3,058 1,470 1,034   Restricted cash   5,675       5,904       20,053       5,772       4,721     Total assets $ 4,890,760     $ 4,908,779     $ 4,860,858     $ 4,679,880     $ 4,586,050           LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Notes payable Unsecured $ 2,265,319 $ 2,198,628 $ 2,065,175 $ 1,897,865 $ 1,759,498 Secured 562,776 565,564 566,001 568,731 571,478 Accounts payable and accrued expenses 107,403 110,643 128,892 110,486 124,834 Accrued real estate taxes 24,943 42,151 29,785 16,036 23,306 Other liabilities (b) 136,365 117,317 115,547 110,684 105,999 Distributions payable   42,689       44,180       44,982       45,137       43,068   Total liabilities 3,139,495 3,078,483 2,950,382 2,748,939 2,628,183   Commitments and contingencies   Minority interests Perpetual preferred units 97,925 97,925 97,925 97,925 97,925 Common units 111,624 104,176 105,353 102,217 115,280 Other minority interests   10,403       10,740       10,916       10,335       10,306   Total minority interests 219,952 212,841 214,194 210,477 223,511   Shareholders' equity Common shares of beneficial interest 654 654 654 654 650 Additional paid-in capital 2,209,631 2,207,333 2,204,525 2,199,713 2,183,622 Distributions in excess of net income (227,025 ) (269,667 ) (241,711 ) (243,786 ) (213,665 ) Employee notes receivable (1,950 ) (1,963 ) (1,976 ) (2,025 ) (2,036 ) Treasury shares, at cost (433,874 ) (318,902 ) (265,210 ) (234,092 ) (234,215 ) Other comprehensive income (c)   (16,123 )     -       -       -       -   Total shareholders' equity   1,531,313       1,617,455       1,696,282       1,720,464       1,734,356   Total liabilities and shareholders' equity $ 4,890,760     $ 4,908,779     $ 4,860,858     $ 4,679,880     $ 4,586,050         (a) includes: net deferred charges of: $ 10,811 $ 10,308 $ 11,565 $ 9,724 $ 10,295 value of in place leases of: $ 258 $ 703 $ 1,091 $ 61 $ 242   (b) includes: deferred revenues of: $ 2,459 $ 2,738 $ 2,937 $ 3,321 $ 3,875 above/below market leases of: ($13 ) $ 25 $ 43 $ 8 $ 32 distributions in excess of investments in joint ventures of: $ 23,653 $ 20,867 $ 19,549 $ 18,805 $ 18,350 fair value adjustment of derivative instrument: $ 16,123 - - - -   (c) Represents the fair value adjustment of the derivative instrument. CAMDEN 2008 Financial Outlook as of February 7, 2008     (Unaudited)   2008 Financial Outlook       Earnings Guidance - Per Diluted Share Expected net income per share - diluted $0.44 to $0.64 Expected difference between EPS and fully diluted FFO shares ($0.02) Expected real estate depreciation $2.94 Expected adjustments for unconsolidated joint ventures $0.13 Expected income allocated to common units $0.11 Expected FFO per share - diluted $3.60 to $3.80   "Same Property" Communities Number of Units 43,528 2007 Base Net Operating Income $324 million Total Revenue Growth 3.50% to 4.50% Revenue Growth excluding revenue attributable to ancillary income initiatives (a) 2.00% to 3.00% Total Expense Growth 5.50% to 6.75% Expense Growth excluding expenses related to ancillary income initiatives (b) 2.50% to 3.75% Net Operating Income Growth 2.25% to 3.25% Physical Occupancy 94.6% · Impact from 1.0% change in NOI Growth is approximately $0.05 / share   Repositioning Communities Number of Units 3,512 2007 Base Net Operating Income $23 million Capital Investment to Date $31 million Total Expected Capital Investment $39 million 2008 Net Operating Income Growth 8.50% to 9.00%   Acquisitions/Dispositions Dispositions (Communities Held for Sale at 12/31/07) $25 to $30 million Future Dispositions Volume $150 to $350 million Future Acquisitions Volume (consolidated on balance sheet) $0 million Future Acquisitions Volume (joint venture) $200 to $400 million   Development Development Starts (consolidated on balance sheet) $0 to $100 million Development Starts (joint venture) $200 to $400 million 2008 Projected Development FFO Dilution $13 to $15 million 2008 Incremental Development FFO Dilution vs. 2007 $6 to $8 million   Non-Property Income Non-Property Income, Net $10 to $14 million Includes: Fee and asset management income, net of expenses and Interest and other income   Corporate Expenses General and Administrative and Property Management Expense $50 to $54 million   Debt Capitalized Interest $16 to $18 million Expensed Interest $130 to $134 million LIBOR (average) 3.30%   Note: Please refer to the following pages for definitions and reconciliations of all non-GAAP financial measures presented in this document.   (a) excludes revenue earned from Perfect Connection (Camden's bulk cable program), Valet Waste (Camden's door to door trash collection program), and RUBS.   (b) excludes expenses associated with Perfect Connection (Camden's bulk cable program), Valet Waste (Camden's door to door trash collection program), and Utilities.   Note: This table contains forward-looking statements. Please see the paragraph regarding forward-looking statements earlier in this document. 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 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 minority interests, which are convertible into common equity. 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 between periods or as compared to different companies. A reconciliation of net income to FFO is provided below:     Three Months Ended Twelve Months Ended December 31, December 31, 2007 2006 2007 2006 Net income $ 80,976 $ 31,364 $ 148,457 $ 232,846 Real estate depreciation and amortization from continuing operations 40,534 38,682 159,031 150,982 Real estate depreciation from discontinued operations - 1,237 2,033 6,251 Adjustments for unconsolidated joint ventures 982 1,021 4,934 3,326 Income from continuing operations allocated to common units 1,444 1,004 4,279 15,230 Income from discontinued operations allocated to common units 8,509 253 13,517 2,307 Income tax expense on sale of depreciable operating properties - - 1,184 - (Gain) loss on sale of operating properties - 100 - (91,481 ) (Gain) on sale of discontinued operations (75,306 ) (18,937 ) (106,282 ) (78,823 ) (Gain) on sale of joint venture properties   -     -     -     (2,848 ) Funds from operations - diluted $ 57,139   $ 54,724   $ 227,153   $ 237,790     Weighted average number of common and common equivalent shares outstanding:   EPS diluted 57,613 59,738 59,125 59,524 FFO diluted 60,597 62,994 62,120 61,253   Net income per common share - diluted $ 1.41 $ 0.53 $ 2.51 $ 3.96 FFO per common share - diluted $ 0.94 $ 0.87 $ 3.66 $ 3.88   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 net income (EPS). A reconciliation of the ranges provided for expected net income per diluted share to expected FFO per diluted share is provided below:   1Q08 Range 2008 Range Low High Low High   Expected net income per share - diluted $ 0.08 $ 0.12 $ 0.44 $ 0.64 Expected difference between EPS and fully diluted FFO shares 0.00 0.00 (0.02 ) (0.02 ) Expected real estate depreciation 0.73 0.73 2.94 2.94 Expected adjustments for unconsolidated joint ventures 0.04 0.04 0.13 0.13 Expected income allocated to common units 0.02 0.02 0.11 0.11 Expected (gain) on sale of properties and properties held for sale   0.00     0.00     0.00     0.00   Expected FFO per share - diluted $ 0.87 $ 0.91 $ 3.60 $ 3.80   Note: This table contains forward-looking statements. Please see the paragraph regarding forward-looking statements earlier in this document.   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 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 to net operating income is provided below:   Three Months Ended Twelve Months Ended December 31, December 31, 2007 2006 2007 2006 Net income $ 80,976 $ 31,364 $ 148,457 $ 232,846 Fee and asset management income (1,722 ) (3,011 ) (8,293 ) (14,041 ) Sale of technology investments - - (623 ) (1,602 ) Interest and other income (4,047 ) (3,674 ) (8,804 ) (9,771 ) Income on deferred compensation plans 1,120 (5,808 ) (7,282 ) (10,116 ) Property management expense 4,437 4,669 18,413 18,490 Fee and asset management expense 1,150 1,089 4,552 9,382 General and administrative expense 8,514 12,285 32,590 37,584 Interest expense 31,475 26,633 116,281 117,862 Depreciation and amortization 41,355 39,328 162,189 153,609 Amortization of deferred financing costs 957 916 3,689 3,807 Expense on deferred compensation plans (1,120 ) 5,808 7,282 10,116 (Gain) loss on sale of properties, including land - 104 - (97,452 ) Impairment loss on sale of land 1,447 - 1,447 - Equity in income of joint ventures (454 ) (642 ) (1,526 ) (5,156 ) Distributions on perpetual preferred units 1,750 1,750 7,000 7,000 Income allocated to common units and other minority interests 1,374 1,308 4,729 15,685 Income tax expense 478 - 1,868 - Income tax expense on sale of depreciable operating properties - - 1,184 - Income from discontinued operations (1,133 ) (2,493 ) (7,857 ) (10,864 ) Gain on sale of discontinued operations, including land (76,063 ) (18,879 ) (107,039 ) (99,273 ) Income from discontinued operations allocated to common units   8,509     253     13,517     2,307   Net Operating Income (NOI) $ 99,003 $ 91,000 $ 381,774 $ 360,413   "Same Property" Communities $ 79,843 $ 76,075 $ 314,631 $ 299,443 Non-"Same Property" Communities 10,615 8,217 37,572 23,745 Development and Lease-Up Communities 1,663 106 3,747 (24 ) Redevelopment Communities 5,954 6,220 23,312 24,311 Dispositions / Other   928     382     2,512     12,938   Net Operating Income (NOI) $ 99,003 $ 91,000 $ 381,774 $ 360,413     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 of joint ventures, gain on sale of real estate assets, and income allocated to minority interests. The Company considers EBITDA to be an appropriate supplemental measure 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. A reconciliation of net income to EBITDA is provided below:   Three Months Ended Twelve Months Ended December 31, December 31, 2007 2006 2007 2006 Net income $ 80,976 $ 31,364 $ 148,457 $ 232,846 Interest expense 31,591 26,752 116,753 118,344 Amortization of deferred financing costs including discontinued operations 957 916 3,689 3,813 Depreciation and amortization 41,355 39,328 162,189 153,609 Distributions on perpetual preferred units 1,750 1,750 7,000 7,000 Income allocated to common units and other minority interests 1,374 1,308 4,729 15,685 Income tax expense 478 - 1,868 - Income tax expense on sale of depreciable operating properties - - 1,184 - Real estate depreciation from discontinued operations - 1,237 2,033 6,251 (Gain) loss on sale of properties, including land - 104 - (97,452 ) Impairment loss on land 1,447 - 1,447 - Equity in income of joint ventures (454 ) (642 ) (1,526 ) (5,156 ) Gain on sale of discontinued operations (76,063 ) (18,879 ) (107,039 ) (99,273 ) Income from discontinued operations allocated to common units   8,509     253     13,517     2,307   EBITDA $ 91,920 $ 83,491 $ 354,301 $ 337,974