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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023
OR

☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________ to _______________
Commission file number: 1-12110

CAMDEN PROPERTY TRUST
(Exact Name of Registrant as Specified in Its Charter)

TX |  | 76-6088377
(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)
11 Greenway Plaza, Suite 2400 | Houston, | Texas |  | 77046
(Address of principal executive offices) |  | (Zip Code)

(713) 354-2500
(Registrant's Telephone Number, Including Area Code)

N/A
(Former Name, Former Address and Former Fiscal Year, If Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class | Trading Symbol | Name of each exchange on which registered
Common Shares of Beneficial Interest, $.01 par value | CPT | NYSE

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit). Yes ý No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of "large accelerated filer", "accelerated filer", and "small reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer |  | ý | Accelerated filer |  | ☐
Non-accelerated filer |  | ¨ | Smaller Reporting Company |  | ☐
|  |  | Emerging Growth Company |  | ☐

If an emerging growth company, indicate by check mark if the registrant has elected to not use the extended transition period for complying with any new or revised financial accounting standards provided pursuant of Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ý
On April 21, 2023, 106,762,369 common shares of the registrant were outstanding, net of treasury shares and shares held in our deferred compensation arrangements.

Table of Contents
CAMDEN PROPERTY TRUST
Table of Contents

|  |  | Page
PART I |  | FINANCIAL INFORMATION | 1
Item 1 |  | Financial Statements | 1
|  | Condensed Consolidated Balance Sheets (Unaudited) as of March 31, 2023 and December 31, 2022 | 1
|  | Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) for the Three Months Ended March 31, 2023 and 2022 | 2
|  | Condensed Consolidated Statements of Equity (Unaudited) for the Three Months Ended March 31, 2023 and 2022 | 3
|  | Condensed Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended March 31, 2023 and 2022 | 5
|  | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6
Item 2 |  | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 16
Item 3 |  | Quantitative and Qualitative Disclosures About Market Risk | 28
Item 4 |  | Controls and Procedures | 28
PART II |  | OTHER INFORMATION | 28
Item 1 |  | Legal Proceedings | 28
Item 1A |  | Risk Factors | 28
Item 2 |  | Unregistered Sales of Equity Securities and Use of Proceeds | 29
Item 3 |  | Defaults Upon Senior Securities | 29
Item 4 |  | Mine Safety Disclosures | 29
Item 5 |  | Other Information | 29
Item 6 |  | Exhibits | 30
SIGNATURES

Table of Contents
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
CAMDEN PROPERTY TRUST
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

(in thousands, except per share amounts) | March 31, 2023 |  | December 31, 2022
Assets |  |  |
Real estate assets, at cost |  |  |
Land | $ | 1,722,881 |  |  | $ | 1,716,273 |
Buildings and improvements | 10,778,795 |  |  | 10,674,619 |
| $ | 12,501,676 |  |  | $ | 12,390,892 |
Accumulated depreciation | (3,987,438) |  |  | (3,848,111) |
Net operating real estate assets | $ | 8,514,238 |  |  | $ | 8,542,781 |
Properties under development, including land | 515,134 |  |  | 524,981 |
Total real estate assets | $ | 9,029,372 |  |  | $ | 9,067,762 |
Accounts receivable – affiliates | 12,121 |  |  | 13,364 |
Other assets, net | 226,394 |  |  | 229,371 |
Cash and cash equivalents | 20,419 |  |  | 10,687 |
Restricted cash | 6,863 |  |  | 6,751 |
Total assets | $ | 9,295,169 |  |  | $ | 9,327,935 |
Liabilities and equity |  |  |
Liabilities |  |  |
Notes Payable |  |  |
Unsecured | $ | 3,232,682 |  |  | $ | 3,165,924 |
Secured | 515,134 |  |  | 514,989 |
Accounts payable and accrued expenses | 191,468 |  |  | 211,370 |
Accrued real estate taxes | 48,084 |  |  | 95,551 |
Distributions payable | 110,444 |  |  | 103,628 |
Other liabilities | 193,804 |  |  | 179,552 |
Total liabilities | $ | 4,291,616 |  |  | $ | 4,271,014 |
Commitments and contingencies (Note 11) |  |  |
Equity |  |  |
Common shares of beneficial interest; $0.01 par value per share; 175,000 shares authorized; 117,738 and 117,734 issued; 115,652 and 115,636 outstanding at March 31, 2023 and December 31, 2022, respectively | 1,156 |  |  | 1,156 |
Additional paid-in capital | 5,903,437 |  |  | 5,897,454 |
Distributions in excess of net income attributable to common shareholders | (648,457) |  |  | (581,532) |
Treasury shares, at cost (8,889 and 9,090 common shares at March 31, 2023 and December 31, 2022, respectively) | (321,431) |  |  | (328,684) |
Accumulated other comprehensive loss | (1,415) |  |  | (1,774) |
Total common equity | $ | 4,933,290 |  |  | $ | 4,986,620 |
Non-controlling interests | 70,263 |  |  | 70,301 |
Total equity | $ | 5,003,553 |  |  | $ | 5,056,921 |
Total liabilities and equity | $ | 9,295,169 |  |  | $ | 9,327,935 |

See Notes to Condensed Consolidated Financial Statements (Unaudited).
1

Table of Contents
CAMDEN PROPERTY TRUST
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
(Unaudited)

| Three Months Ended March 31, |  |
(in thousands, except per share amounts) | 2023 |  | 2022 |  |  |  |
Property revenues | $ | 378,163 |  |  | $ | 311,359 |  |  |  |  |
Property expenses |  |  |  |  |  |  |
Property operating and maintenance | 85,285 |  |  | 70,437 |  |  |  |  |
Real estate taxes | 49,396 |  |  | 39,873 |  |  |  |  |
Total property expenses | $ | 134,681 |  |  | $ | 110,310 |  |  |  |  |
Non-property income/(loss) |  |  |  |  |  |  |
Fee and asset management | $ | 578 |  |  | $ | 2,450 |  |  |  |  |
Interest and other income | 62 |  |  | 2,131 |  |  |  |  |
Income/(loss) on deferred compensation plans | 5,912 |  |  | (7,497) |  |  |  |  |
Total non-property income/(loss) | $ | 6,552 |  |  | $ | (2,916) |  |  |  |  |
Other expenses |  |  |  |  |  |  |
Property management | $ | 8,297 |  |  | $ | 7,214 |  |  |  |  |
Fee and asset management | 413 |  |  | 1,175 |  |  |  |  |
General and administrative | 15,356 |  |  | 14,790 |  |  |  |  |
Interest | 32,843 |  |  | 24,542 |  |  |  |  |
Depreciation and amortization | 142,444 |  |  | 113,138 |  |  |  |  |
Expense/(benefit) on deferred compensation plans | 5,912 |  |  | (7,497) |  |  |  |  |
Total other expenses | $ | 205,265 |  |  | $ | 153,362 |  |  |  |  |
Gain on sale of operating property | — |  |  | 36,372 |  |  |  |  |
Equity in income of joint ventures | — |  |  | 3,048 |  |  |  |  |
Income from continuing operations before income taxes | $ | 44,769 |  |  | $ | 84,191 |  |  |  |  |
Income tax expense | (1,150) |  |  | (590) |  |  |  |  |
Net income | $ | 43,619 |  |  | $ | 83,601 |  |  |  |  |
Less income allocated to non-controlling interests | (1,702) |  |  | (2,856) |  |  |  |  |
Net income attributable to common shareholders | $ | 41,917 |  |  | $ | 80,745 |  |  |  |  |

Earnings per share – basic | $ | 0.39 |  |  | $ | 0.77 |  |  |  |  |
Earnings per share – diluted | $ | 0.39 |  |  | $ | 0.76 |  |  |  |  |
Weighted average number of common shares outstanding – basic | 108,568 |  |  | 105,336 |  |  |  |  |
Weighted average number of common shares outstanding – diluted | 108,604 |  |  | 106,152 |  |  |  |  |
Condensed Consolidated Statements of Comprehensive Income |  |  |  |  |  |  |
Net income | $ | 43,619 |  |  | $ | 83,601 |  |  |  |  |
Other comprehensive income |  |  |  |  |  |  |
Reclassification of net loss on cash flow hedging activities, prior service cost and net loss on post retirement obligation | 359 |  |  | 369 |  |  |  |  |
Comprehensive income | $ | 43,978 |  |  | $ | 83,970 |  |  |  |  |
Less income allocated to non-controlling interests | (1,702) |  |  | (2,856) |  |  |  |  |
Comprehensive income attributable to common shareholders | $ | 42,276 |  |  | $ | 81,114 |  |  |  |  |

See Notes to Condensed Consolidated Financial Statements (Unaudited).
2

Table of Contents
CAMDEN PROPERTY TRUST
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(Unaudited)
For the three months ended March 31, 2023

| Common Shareholders |  |  |  |
(in thousands, except per share amounts) | Common shares of beneficial interest |  | Additional paid-in capital |  | Distributions in excess of net income |  | Treasury shares, at cost |  | Accumulated other comprehensive (loss)/income |  | Non-controlling interests |  | Total equity
Equity, December 31, 2022 | $ | 1,156 |  |  | $ | 5,897,454 |  |  | $ | (581,532) |  |  | $ | (328,684) |  |  | $ | (1,774) |  |  | $ | 70,301 |  |  | $ | 5,056,921 |
Net income |  |  |  |  | 41,917 |  |  |  |  |  |  | 1,702 |  |  | 43,619 |
Other comprehensive income |  |  |  |  |  |  |  |  | 359 |  |  |  |  | 359 |
Net share awards |  |  | 5,721 |  |  |  |  | 7,253 |  |  |  |  |  |  | 12,974 |
Employee share purchase plan |  |  | 118 |  |  |  |  |  |  |  |  |  |  | 118 |
Conversion of operating partnership units |  |  | 144 |  |  |  |  |  |  |  |  | (144) |  |  | — |
Cash distributions declared to equity holders ($1.00 per common share) |  |  |  |  | (108,842) |  |  |  |  |  |  | (1,596) |  |  | (110,438) |
Equity, March 31, 2023 | $ | 1,156 |  |  | $ | 5,903,437 |  |  | $ | (648,457) |  |  | $ | (321,431) |  |  | $ | (1,415) |  |  | $ | 70,263 |  |  | $ | 5,003,553 |

See Notes to Condensed Consolidated Financial Statements (Unaudited).
3

Table of Contents
CAMDEN PROPERTY TRUST
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Continued)
(Unaudited)
For the three months ended March 31, 2022

| Common Shareholders |  |  |  |
(in thousands, except per share amounts) | Common shares of beneficial interest |  | Additional paid-in capital |  | Distributions in excess of net income |  | Treasury shares, at cost |  | Accumulated other comprehensive (loss)/income |  | Non-controlling interests |  | Total equity
Equity, December 31, 2021 | $ | 1,126 |  |  | $ | 5,363,530 |  |  | $ | (829,453) |  |  | $ | (333,974) |  |  | $ | (3,739) |  |  | $ | 68,765 |  |  | $ | 4,266,255 |
Net income |  |  |  |  | 80,745 |  |  |  |  |  |  | 2,856 |  |  | 83,601 |
Other comprehensive income |  |  |  |  |  |  |  |  | 369 |  |  |  |  | 369 |
Common shares issued | 1 |  |  | 26,164 |  |  |  |  |  |  |  |  |  |  | 26,165 |
Net share awards |  |  | 6,477 |  |  |  |  | 4,453 |  |  |  |  |  |  | 10,930 |
Employee share purchase plan |  |  | 134 |  |  |  |  |  |  |  |  |  |  | 134 |
Cash distributions declared to equity holders ($0.94 per common share) |  |  |  |  | (99,366) |  |  |  |  |  |  | (1,511) |  |  | (100,877) |
Other |  |  | (38) |  |  |  |  |  |  |  |  |  |  | (38) |
Equity, March 31, 2022 | $ | 1,127 |  |  | $ | 5,396,267 |  |  | $ | (848,074) |  |  | $ | (329,521) |  |  | $ | (3,370) |  |  | $ | 70,110 |  |  | $ | 4,286,539 |

See Notes to Condensed Consolidated Financial Statements (Unaudited).
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CAMDEN PROPERTY TRUST
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

| Three Months Ended March 31,
(in thousands) | 2023 |  | 2022
Cash flows from operating activities |  |  |
Net income | $ | 43,619 |  |  | $ | 83,601 |
Adjustments to reconcile net income to net cash from operating activities: |  |  |
Depreciation and amortization | 142,444 |  |  | 113,138 |
Gain on sale of operating property | — |  |  | (36,372) |
Distributions of income from joint ventures | — |  |  | 3,015 |
Equity in income of joint ventures | — |  |  | (3,048) |
Share-based compensation | 3,629 |  |  | 3,175 |
Net change in operating accounts and other | (49,981) |  |  | (41,222) |
Net cash from operating activities | $ | 139,711 |  |  | $ | 122,287 |
Cash flows from investing activities |  |  |
Development and capital improvements, including land | $ | (91,908) |  |  | $ | (90,531) |
Proceeds from sale of operating property | — |  |  | 70,536 |
Increase in earnest money | — |  |  | (23,219) |
Other | (1,627) |  |  | (5,696) |
Net cash from investing activities | $ | (93,535) |  |  | $ | (48,910) |
Cash flows from financing activities |  |  |
Borrowings on unsecured revolving credit facility | $ | 265,000 |  |  | $ | 500,000 |
Repayments on unsecured revolving credit facility | (199,000) |  |  | — |
Proceeds from issuance of common shares | — |  |  | 26,165 |
Distributions to common shareholders and non-controlling interests | (103,599) |  |  | (88,786) |
Other | 1,267 |  |  | 5,758 |
Net cash from financing activities | $ | (36,332) |  |  | $ | 443,137 |
Net increase in cash, cash equivalents, and restricted cash | 9,844 |  |  | 516,514 |
Cash, cash equivalents, and restricted cash, beginning of period | 17,438 |  |  | 618,980 |
Cash, cash equivalents, and restricted cash, end of period | $ | 27,282 |  |  | $ | 1,135,494 |
Reconciliation of cash, cash equivalents, and restricted cash to the Condensed Consolidated Balance Sheets |  |  |
Cash and cash equivalents | $ | 20,419 |  |  | $ | 1,129,716 |
Restricted cash | 6,863 |  |  | 5,778 |
Total cash, cash equivalents, and restricted cash, end of period | $ | 27,282 |  |  | $ | 1,135,494 |
Supplemental information |  |  |
Cash paid for interest, net of interest capitalized | $ | 26,378 |  |  | $ | 16,581 |
Supplemental schedule of noncash investing and financing activities |  |  |
Distributions declared but not paid | 110,444 |  |  | 100,880 |
Value of shares issued under benefit plans, net of cancellations | 23,583 |  |  | 20,245 |
Accrual associated with construction and capital expenditures | 27,413 |  |  | 20,564 |

See Notes to Condensed Consolidated Financial Statements (Unaudited).
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CAMDEN PROPERTY TRUST
Notes to Condensed Consolidated Financial Statements
(Unaudited)
1. Description of Business
Business. Formed on May 25, 1993, Camden Property Trust ("CPT"), a Texas real estate investment trust ("REIT"), and all consolidated subsidiaries are primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Our multifamily apartment communities are referred to as "communities," "multifamily communities," "properties," or "multifamily properties" in the following discussion. As of March 31, 2023, we owned interests in, operated, or were developing 178 multifamily properties comprised of 60,652 apartment homes across the United States. Of the 178 properties, six properties were under construction as of March 31, 2023, and will consist of a total of 1,950 apartment homes when completed. We also own land holdings which we may develop into multifamily communities in the future.
2. Summary of Significant Accounting Policies and Recent Accounting Pronouncements
Principles of Consolidation. Our condensed consolidated financial statements include our accounts and the accounts of other subsidiaries and joint ventures (including partnerships and limited liability companies) over which we have control. All intercompany transactions, balances, and profits have been eliminated in consolidation. Investments acquired or created are evaluated based on the accounting guidance relating to variable interest entities ("VIEs"), which requires the consolidation of VIEs in which we are considered to be the primary beneficiary. If the investment is determined not to be a VIE, then the investment is evaluated for consolidation primarily using a voting interest model. In determining if we have a controlling financial interest, we consider factors such as ownership interests, decision making authority, kick-out rights and participating rights. As of March 31, 2023, two of our consolidated operating partnerships were VIEs. We are considered the primary beneficiary of both consolidated operating partnerships and therefore consolidate these operating partnerships. As of March 31, 2023, we held between approximately 93% and 95% of the outstanding common limited partnership units and the sole 1% general partnership interest in each of these consolidated operating partnerships.
Interim Financial Reporting. We have prepared these unaudited financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial statements and the applicable rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, these statements do not include all information and footnote disclosures required for annual statements. While we believe the disclosures presented are adequate for interim reporting, these interim unaudited financial statements should be read in conjunction with the audited financial statements and notes included in our 2022 Annual Report on Form 10-K.
Acquisitions of Real Estate. Upon an acquisition of real estate, we determine the fair value of tangible and intangible assets, which includes land, buildings (as-if-vacant), furniture and fixtures, the value of in-place leases, including above and below market leases, and acquired liabilities. In estimating these values, we apply methods similar to those used by independent appraisers of income-producing property. Estimates of fair value of acquired debt are based upon interest rates available for the issuance of debt with similar terms and remaining maturities. Depreciation is computed on a straight-line basis over the remaining useful lives of the related tangible assets. The value of in-place leases and above or below market leases is amortized over the estimated average remaining life of leases in place at the time of acquisition; the net carrying value of in-place leases are included in other assets, net and the net carrying value of above or below market leases are included in other liabilities, net in our condensed consolidated balance sheets.
We did not recognize amortization expense related to in-place leases or revenue related to net below-market leases during the three months ended March 31, 2023. We recognized amortization expense related to in-place leases and revenue related to net below-market leases of approximately $6.2 million and $0.9 million, respectively, for the three months ended March 31, 2022. The weighted average amortization period for in-place leases and net below-market leases during the three months ended March 31, 2022 was approximately twelve months and ten months, respectively.
Asset Impairment. Long-lived assets are reviewed for impairment annually or whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Impairment may exist if estimated future undiscounted cash flows associated with long-lived assets are not sufficient to recover the carrying value of such assets. We consider projected future undiscounted cash flows, trends, strategic decisions regarding future development plans, and other factors in our assessment of whether impairment conditions exist. While we believe our estimates of future cash flows are reasonable, different assumptions regarding a number of factors, including market rents, economic conditions, and occupancies, could significantly affect these estimates. When impairment exists, the long-lived asset is adjusted to its fair value. In estimating fair value, management uses appraisals, management estimates, and discounted cash flow calculations which utilize inputs from
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a marketplace participant's perspective. We did not record any impairment charges for the three months ended March 31, 2023 or 2022.
The value of our properties under development depends on market conditions, including estimates of the project start date, projected construction costs, and demand for multifamily communities. We have reviewed market trends and other marketplace information and incorporated this information as well as our current outlook into the assumptions we use in our impairment analyses. Due to the judgment and assumptions applied in the impairment analyses, it is possible actual results could differ substantially from those estimated.
We believe the carrying value of our operating real estate assets, properties under development, and land is currently recoverable. However, if market conditions deteriorate or if changes in our development strategy significantly affect any key assumptions used in our fair value estimates, we may need to take material charges in future periods for impairments related to existing assets. Any such material non-cash charges could have an adverse effect in our consolidated financial position and results of operations.
Cost Capitalization. Real estate assets are carried at cost plus capitalized carrying charges. Carrying charges are primarily interest and real estate taxes which are capitalized as part of properties under development. Capitalized interest is generally based on the weighted average interest rate of our unsecured debt and was approximately $5.0 million and $4.0 million for the three months ended March 31, 2023 and 2022, respectively. Capitalized real estate taxes were approximately $1.3 million and $1.2 million for the three months ended March 31, 2023 and 2022, respectively.
Expenditures directly related to the development and improvement of real estate assets are capitalized at cost as land and buildings and improvements. Indirect development costs, including salaries and benefits and other related costs directly attributable to the development of properties, are also capitalized. We begin capitalizing development, construction, and carrying costs when the development of the future real estate asset is probable and certain activities necessary to prepare the underlying real estate for its intended use have been initiated. All construction and carrying costs are capitalized and reported in the balance sheet as properties under development until the apartment homes are substantially completed. As apartment homes within development properties are substantially completed, the total capitalized development cost of each apartment home is transferred from properties under development including land to buildings and improvements.
Depreciation and amortization is computed over the expected useful lives of depreciable property on a straight-line basis with lives generally as follows:

| Estimated Useful Life
Buildings and improvements | 5-35 years
Furniture, fixtures, equipment, and other | 3-20 years
Intangible assets/liabilities (in-place leases and above and below-market leases) | underlying lease term

Fair Value. For financial assets and liabilities recorded at fair value on a recurring or non-recurring basis, fair value is the price we would expect to receive to sell an asset, or pay to transfer a liability, in an orderly transaction with a market participant at the measurement date under current market conditions. In the absence of such data, fair value is estimated using internal information consistent with what market participants would use in a hypothetical transaction.
In determining fair value, observable inputs reflect market data obtained from independent sources while unobservable inputs reflect our market assumptions; preference is given to observable inputs. These two types of inputs create the following fair value hierarchy:
•Level 1: Quoted prices for identical instruments in active markets.
•Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.
•Level 3: Significant inputs to the valuation model are unobservable.
Recurring Fair Value Measurements. The following describes the valuation methodologies we use to measure different financial instruments at fair value on a recurring basis:
Deferred Compensation Plan Investments. The estimated fair values of investment securities classified as deferred compensation plan investments are based on quoted market prices utilizing public information for the same transactions. Our deferred compensation plan investments, excluding the value of Company shares, are recorded in other assets in our condensed
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consolidated balance sheets. The inputs associated with the valuation of our recurring deferred compensation plan investments are included in Level 1 of the fair value hierarchy.
Non-Recurring Fair Value Measurements. Certain assets are measured at fair value on a non-recurring basis. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. These assets primarily include long-lived assets which are recorded at fair value when they are acquired, including the remeasurement of previously held ownership interests, using fair value methodologies described above at "Acquisitions of Real Estate," or if the long-lived assets are impaired using the fair value methodologies used to measure long-lived assets described above at "Asset Impairment." The inputs associated with the valuation of long-lived assets are generally included in Level 3 of the fair value hierarchy, unless a quoted price for a similar long-lived asset in an active market exists, at which time they are included in Level 2 of the fair value hierarchy.
Financial Instrument Fair Value Disclosures. As of March 31, 2023 and December 31, 2022, the carrying values of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, and distributions payable represented fair value because of the short-term nature of these instruments. The carrying value of restricted cash approximates its fair value based on the nature of our assessment of the ability to recover these amounts. In calculating the fair value of our notes payable, interest rate and spread assumptions reflect current credit worthiness and market conditions available for the issuance of notes payable with similar terms and remaining maturities. These financial instruments utilize Level 2 inputs.
Income Recognition. The majority of our revenues are derived from real estate lease contracts and presented as property revenues, and include rental revenue as well as revenue from amounts received under contractual terms for other services provided to our customers. As a lessor, we have also elected practical expedients to: i) not separate the lease and non-lease components by class of underlying assets and account for the combined components as a single component under certain conditions, and ii) exclude from lease revenues the sales taxes collected from lessees and certain lessor costs paid directly by the lessee. Our other revenue streams include fee and asset management income in accordance with other revenue guidance, ASC 606, Revenues from Contracts with Customers. Details of our material revenue streams are discussed below:
Property Revenues: We earn rental revenue from operating lease contracts for the use of dedicated spaces within owned assets, which is our only underlying asset class. We recognize rental revenues from these lease contracts on a straight-line basis over the applicable lease term, net of amounts related to lease contracts identified as uncollectible. We also earn revenues from amounts received under contractual terms for other services considered non-lease components within a lease contract, primarily consisting of utility rebillings and other transactional fees. These amounts received under contractual terms for other services are charged to our residents and recognized monthly as earned. Any identified uncollectible amounts related to individual lease contracts are presented as an adjustment to property revenue. Any renewal options of real estate lease contracts are considered a new and separate contract which will be recognized at the time the option is exercised on a straight-line basis over the renewal period.
As of March 31, 2023, our average residential lease term was approximately fourteen months with all non-residential commercial leases averaging longer lease terms. We currently anticipate property revenue from existing leases as follows:

(in millions) |
Year ended December 31, | Operating Leases
Remainder of 2023 | $ | 731.7 |
2024 | 138.0 |
2025 | 2.2 |
2026 | 2.2 |
2027 | 2.2 |
Thereafter | 12.7 |
Total | $ | 889.0 |

Credit Risk. In management’s opinion, there is no significant concentration of credit risk due to the number of residents, the types and diversity of submarkets in which our properties operate, and the collection terms.
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3. Per Share Data
Basic earnings per share is computed using net income attributable to common shareholders and the weighted average number of common shares outstanding. Diluted earnings per share reflects common shares issuable from the assumed conversion of common share options and unvested share awards as well as units convertible into common shares. Only those items having a dilutive impact on our basic earnings per share are included in diluted earnings per share. Our unvested share-based awards are considered participating securities and are reflected in the calculation of basic and diluted earnings per share using the two-class method. Common shares under a forward sale agreement, if any, will be considered in our calculation for diluted earnings-per-share until settlement using the if-converted method. The number of common share equivalent securities excluded from the diluted earnings per share calculation was approximately 1.8 million and 1.0 million for the three months ended March 31, 2023 and 2022, respectively. These securities, which include share awards granted and units convertible into common shares, are anti-dilutive and were therefore excluded from the diluted earnings per share calculations. The following table presents information necessary to calculate basic and diluted earnings per share for the periods indicated:

|  | Three Months Ended March 31, |  |
(in thousands, except per share amounts) |  | 2023 |  | 2022 |  |  |  |
Earnings per common share calculation – basic |  |  |  |  |  |  |  |
Income from continuing operations attributable to common shareholders |  | $ | 41,917 |  |  | $ | 80,745 |  |  |  |  |
Amount allocated to participating securities |  | (81) |  |  | (121) |  |  |  |  |
Net income attributable to common shareholders – basic |  | $ | 41,836 |  |  | $ | 80,624 |  |  |  |  |
Total earnings per common share – basic |  | $ | 0.39 |  |  | $ | 0.77 |  |  |  |  |
Weighted average number of common shares outstanding – basic |  | 108,568 |  |  | 105,336 |  |  |  |  |
Earnings per common share calculation – diluted |  |  |  |  |  |  |  |
Income from continuing operations attributable to common shareholders, net of amount allocated to participating securities |  | $ | 41,836 |  |  | $ | 80,624 |  |  |  |  |
Income allocated to common units from continuing operations |  | — |  |  | 291 |  |  |  |  |
Net income attributable to common shareholders – diluted |  | $ | 41,836 |  |  | $ | 80,915 |  |  |  |  |
Total earnings per common share – diluted |  | $ | 0.39 |  |  | $ | 0.76 |  |  |  |  |
Weighted average number of common shares outstanding – basic |  | 108,568 |  |  | 105,336 |  |  |  |  |
Incremental shares issuable from assumed conversion of: |  |  |  |  |  |  |  |
Share awards granted |  | 36 |  |  | 83 |  |  |  |  |
Common units |  | — |  |  | 733 |  |  |  |  |
Weighted average number of common shares outstanding – diluted |  | 108,604 |  |  | 106,152 |  |  |  |  |

4. Common Shares
In May 2022, we created an at-the-market ("ATM") share offering program through which we can, but have no obligation to, sell common shares for an aggregate offering amount of up to $500.0 million (the "2022 ATM program"), in amounts and at times as we determine, into the existing trading market at current market prices as well as through negotiated transactions. Actual sales from time to time may depend on a variety of factors including, among others, market conditions, the trading price of our common shares, and determinations by management of the appropriate sources of funding for us. The proceeds from any sale of our common shares under the 2022 ATM program are intended to be used for general corporate purposes, which may include reducing future borrowings under our unsecured revolving credit facility, the repayment of other indebtedness, the redemption or other repurchase of outstanding debt or equity securities, funding for development activities, and financing for acquisitions.
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The 2022 ATM program also permits the use of forward sale agreements which allows us to lock in a share price on the sale of common shares at the time the agreement is executed, but defer receiving the proceeds from the sale of the applicable shares until a later date. If we enter into a forward sale agreement, we expect the applicable forward purchasers will borrow from third parties and, through the applicable sales agent acting in its role as forward seller, sell a number of common shares equal to the number of shares underlying the applicable agreement. Under this scenario, we would not initially receive any proceeds from any sale of borrowed shares by the forward seller. We expect to physically settle each forward sale agreement with the relevant forward purchaser on or prior to the maturity date of a particular forward sale agreement by issuing our common shares in return for the receipt of aggregate net cash proceeds at settlement equal to the number of common shares underlying the particular forward sale agreement multiplied by the relevant forward sale price. However, at our sole discretion, we may also elect to cash settle or net share settle a particular forward sale agreement, in which case we may not receive any proceeds from the issuance of common shares, and we will instead receive or pay cash (in the case of cash settlement) or receive or deliver common shares (in the case of net share settlement). As of the date of this filing, we have not sold any shares or entered into any forward sales agreement and have common shares having an aggregate offering amount of up to $500.0 million remaining available for sale under this ATM program.
In August 2021, we created an ATM share offering program through which we could, but had no obligation to, sell common shares having an aggregate offering amount of up to $500.0 million (the "2021 ATM program"). During the three months ended March 31, 2022, we sold an aggregate of approximately 0.2 million common shares at an average price per share of $165.01, for aggregate net consideration of approximately $26.2 million under the 2021 ATM program. In May 2022, we terminated the 2021 ATM program with an aggregate offering amount of approximately $71.3 million remaining available for sale and, upon termination, no further common shares were available for sale. There were no additional shares sold under the 2021 ATM program from March 31, 2022 through the date of the applicable termination agreements.
We have a share repurchase plan approved by our Board of Trust Managers which allows for the repurchase of up to $500.0 million of our common equity securities through open-market purchases, block purchases, and privately negotiated transactions. As of the date of this filing, there were no repurchases and the dollar value of our common equity securities authorized to be repurchased under this program is $500.0 million.
We currently have an automatic shelf registration statement which allows us to offer common shares, preferred shares, debt securities, or warrants, and our Amended and Restated Declaration of Trust provides we may issue up to 185 million shares of beneficial interest, consisting of 175 million common shares and 10 million preferred shares. At March 31, 2023, we had approximately 106.8 million common shares outstanding, net of treasury shares and shares held in our deferred compensation arrangements, and no preferred shares outstanding.
5. Acquisitions and Dispositions
Acquisition of Land. We did not acquire any land during the three months ended March 31, 2023. During the three months ended March 31, 2022, we acquired approximately 15.9 acres of land in Richmond, Texas for future development purposes for approximately $7.8 million.
Sale of Operating Property. We did not sell any operating properties during the three months ended March 31, 2023. During the three months ended March 31, 2022, we sold one operating property comprised of 245 apartment homes located in Largo, Maryland for approximately $71.9 million and recognized a gain of approximately $36.4 million.
6. Investments in Joint Ventures
On April 1, 2022, the Company purchased the remaining 68.7% ownership interests in two unconsolidated discretionary investment funds (collectively, "the Funds" or "the acquisition of the Funds") and consolidated the Funds as of the acquisition date. Prior to the acquisition, we accounted for our 31.3% ownership interest of the Funds under the equity method. The following table summarizes the statement of income data for the Funds for the period accounted for under the equity method.

(in millions) |  |  | Three Months Ended March 31, 2022 |  |  |  |
Total revenues |  |  | $ | 37.2 |  |  |  |  |
Net income |  |  | 7.1 |  |  |  |  |
Equity in income (1) |  |  | 3.0 |  |  |  |  |

(1)Equity in income excludes our ownership interest of fee income from various services provided by us to the Funds.
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Prior to the acquisition of the Funds, we earned fees for property and asset management, construction, development, and other services related to the Funds, and we eliminated fee income for services provided to the Funds to the extent of our ownership. Fees earned for these services, net of eliminations, were approximately $1.7 million for the three months ended March 31, 2022. After the acquisition of the Funds on April 1, 2022, we no longer earn these fees.
7. Notes Payable
The following is a summary of our indebtedness:

(in millions) |  | March 31, 2023 |  | December 31, 2022
Commercial banks |  |  |  |
5.84% Term Loan, due 2024 |  | $ | 39.9 |  |  | $ | 39.8 |
5.70% Term Loan, due 2024 |  | 300.0 |  |  | 300.0 |
5.63% Unsecured revolving credit facility |  | 108.0 |  |  | 42.0 |
|  | $ | 447.9 |  |  | $ | 381.8 |
Senior unsecured notes |  |  |  |
5.07% Notes, due 2023 |  | 249.9 |  |  | 249.8 |
4.36% Notes, due 2024 |  | 249.8 |  |  | 249.7 |
3.68% Notes, due 2024 |  | 249.4 |  |  | 249.2 |
3.74% Notes, due 2028 |  | 398.4 |  |  | 398.3 |
3.67% Notes, due 2029 (1) |  | 595.6 |  |  | 595.5 |
2.91% Notes, due 2030 |  | 744.9 |  |  | 744.8 |
3.41% Notes, due 2049 |  | 296.8 |  |  | 296.8 |
|  | $ | 2,784.8 |  |  | $ | 2,784.1 |
Total unsecured notes payable |  | $ | 3,232.7 |  |  | $ | 3,165.9 |
Secured notes |  |  |  |
Master Credit Facilities |  |  |  |
3.78% - 4.04% Conventional Mortgage Notes, due 2026 - 2028 |  | $ | 291.2 |  |  | $ | 291.2 |
6.69% Variable Rate Notes, due 2026 |  | 166.3 |  |  | 166.2 |
6.99% Variable Rate Construction Note, due 2024 |  | 18.9 |  |  | 18.9 |
3.87% note, due 2028 |  | 38.7 |  |  | 38.7 |
Total secured notes payable |  | $ | 515.1 |  |  | $ | 515.0 |
Total notes payable (2) |  | $ | 3,747.8 |  |  | $ | 3,680.9 |

(1) The 2029 Notes have an effective annual interest rate of approximately 3.84% through June 2026, which includes the effect of a settled forward interest rate swap, and approximately 3.28% thereafter, for an all-in average effective rate of approximately 3.67%.
(2) Unamortized debt discounts, debt issuance costs, and fair market value adjustments of $17.1 million and $18.0 million are included in notes payable as of March 31, 2023 and December 31, 2022, respectively.
We have a $300 million unsecured term loan facility with a delayed draw feature which matures in August 2024, with one option to extend the facility at our election to August 2025, and a $1.2 billion unsecured revolving credit facility which matures in August 2026, with two options to extend the facility at our election for two consecutive six-month periods and to expand the facility up to three times by up to an additional $500 million upon satisfaction of certain conditions. The interest rates on our unsecured revolving credit facility and delayed term loan are based upon the Secured Overnight Financing Rate ("SOFR") plus a spread which is subject to change as our credit ratings change. Advances under our revolving credit facility may be priced at the scheduled rates, or we may enter into bid rate loans with participating banks at rates below the scheduled rates. These bid rate loans have terms of 180 days or less and may not exceed the lesser of $600 million or the remaining amount available under our revolving credit facility. Our revolving credit facility and delayed term loan are subject to customary financial covenants and limitations. We believe we are in compliance with all such financial covenants and limitations as of March 31, 2023 and through the date of this filing.
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Our unsecured revolving credit facility provides us with the ability to issue up to $50 million in letters of credit. While our issuance of letters of credit does not increase our borrowings outstanding under our revolving credit facility, it does reduce the amount available. At March 31, 2023, we had outstanding letters of credit totaling approximately $14.2 million, approximately $1.1 billion available under our unsecured revolving credit facility, and approximately $300.0 million outstanding on our term loan.
As a result of the acquisition of the Funds on April 1, 2022, we assumed secured mortgage loans and recorded an approximate $2.4 million fair value adjustment as a decrease to the note balances, which is being amortized over the respective debt terms. During the three months ended March 31, 2023, we recorded amortization of the fair value adjustment, which resulted in an increase to interest expense of approximately $0.1 million. As of March 31, 2023, approximately $1.8 million of the fair value adjustment remained unamortized.
We had outstanding floating rate debt of approximately $633.1 million and $539.9 million at March 31, 2023 and 2022, respectively. The weighted average interest rate on such debt was approximately 6.0% and 1.3% for the three months ended March 31, 2023 and 2022, respectively.
Our indebtedness had a weighted average maturity of approximately 6.1 years at March 31, 2023. The table below is a summary of the maturity dates of our outstanding debt and principal amortizations, and the weighted average interest rates on such debt, at March 31, 2023:

(in millions) (1) |  | Amount (2) |  | Weighted Average Interest Rate (3)
Remainder of 2023 |  | $ | 247.5 |  |  | 5.1 | %
2024 |  | 556.5 |  |  | 4.2 |
2025 |  | 297.8 |  |  | 5.7 |
2026 |  | 188.9 |  |  | 6.4 |
2027 |  | 280.9 |  |  | 4.6 |
Thereafter |  | 2,176.2 |  |  | 3.4 |
Total |  | $ | 3,747.8 |  |  | 4.1 | %

(1)Includes all available extension options.
(2)Includes amortization of debt discounts, debt issuance costs, and fair market value adjustments.
(3)Includes the effects of the applicable settled forward interest rate swaps.
8. Derivative Financial Instruments and Hedging Activities
Risk Management Objective of Using Derivatives. We are exposed to certain risks arising from both our business operations and economic conditions. We manage economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of our debt funding and the use of derivative financial instruments. Specifically, we may enter into derivative financial instruments to manage exposures arising from business activities resulting in differences in the amount, timing, and duration of our known or expected cash payments related to our borrowings.
Cash Flow Hedges of Interest Rate Risk. Our objectives in using interest rate derivatives are to add stability to interest expense and to manage our exposure to interest rate movements. To accomplish these objectives, we periodically use interest rate swaps as part of our interest rate risk management strategy. Interest rate swaps involve the receipt of variable rate amounts from a counterparty in exchange for us making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.
Designated Hedges. The gain or loss on derivatives designated and qualifying as cash flow hedges is reported as a component of other comprehensive income or loss, and subsequently reclassified into earnings in the period the hedged forecasted transaction affects earnings and is presented in the same line item as the earnings effect of the hedged item. At March 31, 2023 and 2022, we had no designated hedges outstanding.
As of the three months ended March 31, 2023 and 2022, there were no unrealized gains or losses recognized in other comprehensive income related to derivative financial instruments. During each of the three months ended March 31, 2023 and 2022, approximately $0.3 million was reclassified from accumulated other comprehensive income (loss) as an increase to interest expense for derivative financial instruments settled in prior periods.
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9. Share-Based Compensation and Non-Qualified Deferred Compensation Plan
Incentive Compensation. We currently maintain the 2018 Share Incentive Plan (the "2018 Share Plan"), which was approved by our shareholders. The shares available for awards under the 2018 Share Plan are, subject to certain other limits under the plan, generally available for any type of award authorized under the 2018 Share Plan including stock options, stock appreciation rights, restricted stock awards, stock bonuses and other stock-based awards. Persons eligible to receive awards under the 2018 Share Plan include our and our subsidiaries' officers and employees, Trust Managers, and certain of our and our subsidiaries' consultants and advisors. A total of 9.7 million shares ("Share Limit") was authorized under the 2018 Share Plan. Shares issued or to be issued are counted against the Share Limit as (1) 3.45 to 1.0 for every share award, excluding stock options and share appreciation rights, granted, and (2) 1.0 to 1.0 for every share of stock option or share appreciation right granted. As of March 31, 2023, there were approximately 5.2 million common shares available under the 2018 Share Plan, which would result in approximately 1.5 million shares which could be granted pursuant to full value awards conversion ratios as defined under the plan.
Total compensation cost for share awards charged against income was approximately $3.9 million and $3.4 million for the three months ended March 31, 2023 and 2022, respectively. Total capitalized compensation costs for share awards were approximately $1.7 million and $1.0 million for the three months ended March 31, 2023 and 2022, respectively.
A summary of activity under our share incentive plans for the three months ended March 31, 2023 is shown below:

|  |  |  |  | Nonvested Share Awards Outstanding |  | Weighted Average Exercise / Grant Price
Nonvested share awards outstanding at December 31, 2022 |  |  |  |  | 164,647 |  |  | $ | 132.99 |
Granted |  |  |  |  | 202,594 |  |  | 117.56 |
Vested |  |  |  |  | (166,292) |  |  | 121.69 |
Forfeited |  |  |  |  | (1,778) |  |  | 131.04 |
Total nonvested share awards outstanding at March 31, 2023 |  |  |  |  | 199,171 |  |  | $ | 126.75 |

Share Awards and Vesting. Share awards for employees generally vest over three years and are valued at the market value of the shares on the grant date. In the event the holder of the share awards attains at least age 65, and with respect to employees, also attain at least ten or more years of service ("Retirement Eligibility") before the term in which the awards are scheduled to vest, the value of the share awards is amortized from the date of grant to the individual's Retirement Eligibility date. All new share awards granted after reaching Retirement Eligibility vest on the date of grant.
The weighted average fair value of share awards granted during the three months ended March 31, 2023 and 2022 was $117.56 per share and $163.64 per share, respectively. The total fair value of shares vested was approximately $20.2 million and $17.8 million during the three months ended March 31, 2023 and 2022, respectively. At March 31, 2023, the unamortized value of previously issued unvested share awards was approximately $22.7 million which is expected to be amortized over the next three years.
10. Net Change in Operating Accounts
The effect of changes in the operating and other accounts on cash flows from operating activities is as follows:

| Three Months Ended March 31,
(in thousands) | 2023 |  | 2022
Change in assets: |  |  |
Other assets, net | $ | 4,044 |  |  | $ | (9,613) |
Change in liabilities: |  |  |
Accounts payable and accrued expenses | (20,000) |  |  | (13,109) |
Accrued real estate taxes | (47,467) |  |  | (29,708) |
Other liabilities | 12,539 |  |  | 10,266 |
Other | 903 |  |  | 942 |
Change in operating accounts and other | $ | (49,981) |  |  | $ | (41,222) |

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11. Commitments and Contingencies
Construction Contracts. As of March 31, 2023, we estimated the total additional cost to complete the six properties currently under construction to be approximately $267.7 million. We expect to fund this amount through a combination of one or more of the following: cash flows generated from operations, draws on our unsecured revolving credit facility, the use of debt and equity offerings under our automatic shelf registration statement, proceeds from property dispositions, equity issued from our ATM programs, and other unsecured borrowings or secured mortgages.
Litigation. We are subject to various legal proceedings and claims which arise in the ordinary course of business. Matters which arise out of allegation of bodily injury, property damage, and employment practices are generally covered by insurance. While the resolution of these legal proceedings and claims cannot be predicted with certainty, management currently believes the final outcome of such matters will not have a material adverse effect on our consolidated financial statements.
We have been named as a defendant in several cases alleging antitrust violations by a seller of revenue management software and owners and/or operators of multi-family housing, including us, which utilize this software. The complaints allege collusion among defendants to fix rents in violation of Section 1 of the Sherman Act. The first case naming us was filed on November 10, 2022. On April 10, 2023, the U.S. Judicial Panel on Multidistrict Litigation consolidated more than 20 cases, including those filed against us, into a single federal court in the Middle District of Tennessee. We believe these lawsuits are without merit and intend to vigorously defend the actions. At this stage of the proceedings, it is not possible to predict or determine the outcome nor is it possible to estimate the amount of loss, if any, associated with an adverse decision.
Other Commitments and Contingencies. In the ordinary course of our business, we issue letters of intent indicating a willingness to negotiate for acquisitions, dispositions, or joint ventures and also enter into arrangements contemplating various transactions. Such letters of intent and other arrangements are non-binding as to either party unless and until a definitive contract is entered into by the parties. Even if definitive contracts relating to the purchase or sale of real property are entered into, these contracts generally provide the purchaser with time to evaluate the property and conduct due diligence, during which periods the purchaser will have the ability to terminate the contracts without penalty or forfeiture of any deposit or earnest money. There can be no assurance definitive contracts will be entered into with respect to any matter covered by letters of intent or we will consummate any transaction contemplated by any definitive contract. Furthermore, due diligence periods for real property are frequently extended as needed. An acquisition or sale of real property becomes probable at the time the due diligence period expires and the definitive contract has not been terminated. We are then at risk under a real property acquisition contract, but generally only to the extent of any earnest money deposits associated with the contract, and are obligated to sell under a real property sales contract. At March 31, 2023, we had approximately $1.1 million of earnest money deposits for potential acquisitions of land which are included in other assets in our condensed consolidated balance sheet, of which approximately $0.5 million was non-refundable.
Lease Commitments. Substantially all of our lessee operating leases, which are recorded within other liabilities in our condensed consolidated balance sheets, are related to office facility leases. We had no significant changes to our lessee lease commitments for the three months ended March 31, 2023. The lease and non-lease components, excluding short-term lease contracts with a duration of 12 months or less, are accounted for as a combined single component based upon the standalone price at the time the applicable lease is commenced and is recognized as a lease expense on a straight-line basis over the lease term. Most of our office facility leases include options to renew and generally are not included in the operating lease liabilities or right-of-use assets as they are not reasonably certain of being exercised. If an option to renew is exercised, it would be considered a separate contract and recognized based upon the standalone price at the time the option to renew is exercised. Variable lease payments which values are not known at lease commencement, such as executory costs of real estate taxes, property insurance, and common area maintenance, are expensed as incurred. Rental expense totaled approximately $1.0 million for each of the three months ended March 31, 2023 and 2022. The following is a summary of our maturities of our lease liabilities as of March 31, 2023:

(in millions) |
Year ended December 31, | Operating Leases
Remainder of 2023 | $ | 2.5 |
2024 | 3.1 |
2025 | 2.3 |
2026 | 0.4 |
2027 | 0.1 |
Thereafter | — |
Less: discount for time value | (0.6) |
Lease liability as of March 31, 2023 | $ | 7.8 |

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12. Income Taxes
We have maintained and intend to maintain our election as a REIT under the Internal Revenue Code of 1986, as amended. In order for us to continue to qualify as a REIT we must meet a number of organizational and operational requirements, including a requirement to distribute annual dividends to our shareholders equal to a minimum of 90% of our adjusted taxable income. As a REIT, we generally will not be subject to federal income tax on our taxable income at the corporate level to the extent such income is distributed to our shareholders annually. If our taxable income exceeds our dividends in a tax year, REIT tax rules allow us to designate dividends from the subsequent tax year in order to avoid current taxation on undistributed income. If we fail to qualify as a REIT in any taxable year, we may be subject to federal and state income taxes for such year. In addition, we may not be able to requalify as a REIT for the four subsequent taxable years and may be subject to federal and state income taxes in those years as well. Historically, we have incurred only state and local income, franchise, and excise taxes. Taxable income from non-REIT activities managed through taxable REIT subsidiaries is subject to applicable federal, state, and local income taxes. Our consolidated operating partnerships are flow-through entities and are not subject to federal income taxes at the entity level.
We have recorded income, franchise, sales, and excise taxes in the condensed consolidated statements of income and comprehensive income for the three months ended March 31, 2023 and 2022 as income tax expense. Income taxes for the three months ended March 31, 2023 primarily related to state income tax. We have no significant temporary or permanent differences or tax credits associated with our taxable REIT subsidiaries.
We believe we have no uncertain tax positions or unrecognized tax benefits requiring disclosure as of and for the three months ended March 31, 2023.
13. Fair Value Measurements
Recurring Fair Value Measurements. The following table presents information about our financial instruments measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022 using the inputs and fair value hierarchy discussed in Note 2, "Summary of Significant Accounting Policies and Recent Accounting Pronouncements."
Financial Instruments Measured at Fair Value on a Recurring Basis

| March 31, 2023 |  | December 31, 2022
(in millions) | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
Other Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deferred compensation plan investments (1) | $ | 123.1 |  |  | $ | — |  |  | $ | — |  |  | $ | 123.1 |  |  | $ | 120.7 |  |  | $ | — |  |  | $ | — |  |  | $ | 120.7 |

(1)Approximately $7.4 million and $3.6 million of participant cash was withdrawn from our deferred compensation plan investments during the three months ended March 31, 2023 and the year ended December 31, 2022, respectively.
Non-Recurring Fair Value Disclosures. The nonrecurring fair value disclosure inputs under the fair value hierarchy are discussed in Note 2, "Summary of Significant Accounting Policies and Recent Accounting Pronouncements." We did not have any asset acquisitions of operating properties or impairments during each of the three months ended March 31, 2023 and 2022.
Financial Instrument Fair Value Disclosures. The following table presents the carrying and estimated fair values of our notes payable at March 31, 2023 and December 31, 2022, in accordance with the policies discussed in Note 2, "Summary of Significant Accounting Policies and Recent Accounting Pronouncements."

| March 31, 2023 |  | December 31, 2022
(in millions) | Carrying Value |  | Estimated Fair Value |  | Carrying Value |  | Estimated Fair Value
Fixed rate notes payable | $ | 3,114.7 |  |  | $ | 2,843.0 |  |  | $ | 3,114.0 |  |  | $ | 2,806.1 |
Floating rate notes payable (1) | 633.1 |  |  | 633.5 |  |  | 566.9 |  |  | 566.8 |

(1) Includes balances outstanding under our unsecured revolving credit facility at March 31, 2023 and December 31, 2022.
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion should be read in conjunction with the condensed consolidated financial statements and notes appearing elsewhere in this report, as well as Part I, Item 1A, "Risk Factors" within our Annual Report on Form 10-K for the year ended December 31, 2022. Historical results and trends which might appear in the condensed consolidated financial statements should not be interpreted as being indicative of future operations.
We consider portions of this report to be "forward-looking" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to our expectations for future periods. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions, or other items relating to the future; forward-looking statements are not guarantees of future performance, results, or events. Although we believe the expectations reflected in our forward-looking statements are based upon reasonable assumptions, we can give no assurance our expectations will be achieved. Any statements contained herein which are not statements of historical fact should be deemed forward-looking statements. Reliance should not be placed on these forward-looking statements as these statements are subject to known and unknown risks, uncertainties, and other factors beyond our control and could differ materially from our actual results and performance.
For a discussion of risks in response to recent bank failures, see "Because of recent deterioration of the credit and capital markets, we may be unable to obtain debt financing from sources other than our unsecured revolving credit facility on acceptable terms or at all" under Item 1A, "Risk Factors." Factors which may cause our actual results or performance to differ materially from those contemplated by forward-looking statements include, but are not limited to, the following:
•Because of recent deterioration of the credit and capital markets, we may be unable to obtain debt financing from sources other than our unsecured revolving credit facility on acceptable terms or at all;
•Volatility in capital and credit markets, or other unfavorable changes in economic conditions, either nationally or regionally in one or more of the markets in which we operate, could adversely impact us;
•Short-term leases could expose us to the effects of declining market rents;
•Competition could limit our ability to lease apartments or increase or maintain rental income;
•We could be negatively impacted by the risks associated with land holdings and related activities;
•Development, repositions, redevelopment and construction risks could impact our profitability;
•Our acquisition strategy may not produce the cash flows expected;
•Changes in rent control or rent stabilization laws and regulations could adversely affect our operations and property values;
•Failure to qualify as a REIT could have adverse consequences;
•Tax laws may continue to change at any time and any such legislative or other actions could have a negative effect on us;
•A cybersecurity incident and other technology disruptions could negatively impact our business;
•We have significant debt which could have adverse consequences;
•Insufficient cash flows could limit our ability to make required payments for debt obligations or pay distributions to shareholders;
•Issuances of additional debt may adversely impact our financial condition;
•We may be unable to renew, repay, or refinance our outstanding debt;
•Rising interest rates could both increase our borrowing costs, thereby adversely affecting our cash flows and the amounts available for distribution to our shareholders, and decrease our share price, if investors seek higher yields through other investments;
•Failure to maintain our current credit ratings could adversely affect our cost of funds, related margins, liquidity, and access to capital markets;
•Share ownership limits and our ability to issue additional equity securities may prevent takeovers beneficial to shareholders;
•The form, timing and amount of dividend distributions in future periods may vary and be impacted by economic and other considerations;
•Environmental, Social, and Governance factors may impose additional costs and/or expose us to new risks;
•Litigation risks could affect our business;
•A pandemic and measures intended to prevent its spread could negatively impact our business;
•Damage from catastrophic weather and other natural events could result in losses;
•Competition could adversely affect our ability to acquire properties; and
•We could be adversely impacted due to our share price fluctuations.
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These forward-looking statements represent our estimates and assumptions as of the date of this report, and we assume no obligation to update or supplement forward-looking statements because of subsequent events.
Executive Summary
Camden Property Trust and all consolidated subsidiaries are primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. We focus on investing in markets characterized by high-growth economic conditions, strong employment, and attractive quality of life which we believe leads to higher demand for our apartments and retention of our residents. As of March 31, 2023, we owned interests in, operated, or were developing 178 multifamily properties comprised of 60,652 apartment homes across the United States. In addition, we own other land holdings which we may develop into multifamily apartment communities in the future.
Business Environment and Current Outlook
During the three months ended March 31, 2023, our results reflect an increase in same store revenues of approximately 8.0% as compared to the same period in 2022. The increase was primarily due to higher average rental rates, which we believe was primarily attributable to job growth, favorable demographics with a higher propensity to rent versus buy, higher demand for multifamily housing in our markets, and a manageable supply of new multifamily housing.
We currently believe the supply of multifamily homes will remain at manageable levels during 2023 in the submarkets and asset classes in which we operate. However, if economic conditions were to worsen, our operating results could be adversely affected.
Consolidated Results
Net income attributable to common shareholders was $41.9 million and $80.7 million for the three months ended March 31, 2023 and 2022, respectively. The decrease was primarily due to a gain on sale of an operating property in Largo, Maryland during the first quarter of 2022. The decrease was also due to higher depreciation and interest expense and lower equity in income of joint ventures during the three months ended March 31, 2023, primarily due to our purchase of the remaining 68.7% ownership interests in two unconsolidated investment funds (collectively, "the Funds" or "the acquisition of the Funds") on April 1, 2022. The decrease was partially offset by a 21.1% increase in property operations primarily related to non-same store, same store, and development and lease up communities during the three months ended March 31, 2023 as compared to the same period in 2022. See further discussion of our 2023 operations as compared to 2022 in "Results of Operations," below.
Construction Activity
At March 31, 2023, we had a total of six properties under construction comprising 1,950 apartment homes. As of March 31, 2023, we estimated the total additional cost to complete the construction of these six properties is approximately $267.7 million.
Future Outlook
Subject to market conditions, we intend to continue to seek opportunities to develop new communities and to redevelop, reposition, and acquire existing communities. We also intend to evaluate our portfolio and plan to continue our practice of selective dispositions as market conditions warrant and opportunities arise. We expect to maintain a strong balance sheet and preserve our financial flexibility by continuing to focus on our core fundamentals which we believe are generating positive cash flows from operations, maintaining appropriate debt levels, leverage ratios, and controlling overhead costs. We intend to meet our near-term liquidity requirements through a combination of one or more of the following: cash flows generated from operations, draws on our unsecured revolving credit facility, the use of debt and equity offerings under our automatic shelf registration statement, proceeds from property dispositions, equity issued from the ATM programs, and other unsecured borrowings or secured mortgages.
As of March 31, 2023, we had approximately $1.1 billion available under our $1.2 billion unsecured revolving credit facility. As of March 31, 2023 and through the date of this filing, we also had common shares having an aggregate offering amount of up to $500.0 million remaining available for sale under our 2022 ATM program and the ability to issue debt and equity under our automatic shelf registration statement. We believe scheduled repayments of debt due during the next 12 months are manageable at approximately $500.0 million which represents approximately 13.3% of our total outstanding debt, and excludes amortization of debt discounts, and debt issuance costs. We believe we are well-positioned with a strong balance sheet and sufficient liquidity to fund new development, repositions, redevelopment, and other capital requirements including
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scheduled debt maturities. We will, however, continue to assess and take further actions we believe are prudent to meet our objectives and capital requirements.
Property Portfolio
Our multifamily property portfolio is summarized as follows:

| March 31, 2023 |  | December 31, 2022
| Number of Homes |  | Properties |  | Number of Homes |  | Properties
Operating Properties |  |  |  |  |  |  |
Houston, Texas | 9,154 |  |  | 26 |  |  | 9,154 |  |  | 26 |
Dallas, Texas | 6,224 |  |  | 15 |  |  | 6,224 |  |  | 15 |
Washington, D.C. Metro | 6,192 |  |  | 17 |  |  | 6,192 |  |  | 17 |
Atlanta, Georgia | 4,862 |  |  | 15 |  |  | 4,862 |  |  | 15 |
Phoenix, Arizona | 4,029 |  |  | 13 |  |  | 4,029 |  |  | 13 |
Orlando, Florida | 3,954 |  |  | 11 |  |  | 3,954 |  |  | 11 |
Austin, Texas | 3,686 |  |  | 11 |  |  | 3,686 |  |  | 11 |
Raleigh, North Carolina | 3,252 |  |  | 9 |  |  | 3,252 |  |  | 9 |
Charlotte, North Carolina | 3,104 |  |  | 14 |  |  | 3,104 |  |  | 14 |
Tampa, Florida | 3,104 |  |  | 8 |  |  | 3,104 |  |  | 8 |
Southeast Florida | 3,050 |  |  | 9 |  |  | 3,050 |  |  | 9 |
Denver, Colorado | 2,873 |  |  | 9 |  |  | 2,873 |  |  | 9 |
Los Angeles/Orange County, California | 2,663 |  |  | 7 |  |  | 2,663 |  |  | 7 |
San Diego/Inland Empire, California | 1,797 |  |  | 6 |  |  | 1,797 |  |  | 6 |
Nashville, Tennessee | 758 |  |  | 2 |  |  | 758 |  |  | 2 |
Total Operating Properties | 58,702 |  |  | 172 |  |  | 58,702 |  |  | 172 |
Properties Under Construction |  |  |  |  |  |  |
Raleigh, North Carolina | 789 |  |  | 2 |  |  | 789 |  |  | 2 |
Phoenix, Arizona | 397 |  |  | 1 |  |  | 397 |  |  | 1 |
Charlotte, North Carolina | 387 |  |  | 1 |  |  | 387 |  |  | 1 |
Houston, Texas | 377 |  |  | 2 |  |  | 377 |  |  | 2 |
Total Properties Under Construction | 1,950 |  |  | 6 |  |  | 1,950 |  |  | 6 |
Total Properties | 60,652 |  |  | 178 |  |  | 60,652 |  |  | 178 |

Stabilized Communities
We generally consider a property stabilized once it reaches 90% occupancy. During the three months ended March 31, 2023, stabilization was achieved at one operating property as follows:

Stabilized Property and Location | Number of Homes |  | Date of Construction Completion |  | Date of Stabilization
Operating Properties |  |  |  |  |
Camden Atlantic | 269 |  | 4Q22 |  | 1Q23
Plantation, FL |  |  |  |  |

Properties Under Development
Our condensed consolidated balance sheet at March 31, 2023 includes approximately $515.1 million related to properties under development and land. Of this amount, approximately $270.1 million related to our properties currently under construction. In addition, we had approximately $245.0 million primarily invested in land held for future development.
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Properties Under Construction. At March 31, 2023, we had six properties in various stages of construction as follows:

($ in millions) Properties and Locations | Number of Homes |  | Estimated Cost |  | Cost Incurred |  | Included in Properties Under Development |  | Estimated Date of Construction Completion |  | Estimated Date of Stabilization
Properties Under Construction |  |  |  |  |  |  |  |  |  |  |
Camden Tempe II (1) |  |  |  |  |  |  |  |  |  |  |
Tempe, AZ | 397 |  |  | $ | 115.0 |  |  | $ | 104.4 |  |  | $ | 16.7 |  |  | 3Q23 |  | 2Q24
Camden NoDa (2) |  |  |  |  |  |  |  |  |  |  |
Charlotte, NC | 387 |  | 108.0 |  | 101.6 |  | 66.1 |  | 4Q23 |  | 1Q25
Camden Durham |  |  |  |  |  |  |  |  |  |  |
Durham, NC | 420 |  | 145.0 |  | 95.7 |  | 95.7 |  | 2Q24 |  | 4Q25
Camden Village District |  |  |  |  |  |  |  |  |  |  |
Raleigh, NC | 369 |  | 138.0 |  | 45.4 |  | 45.4 |  | 2Q25 |  | 4Q26
Camden Woodmill Creek |  |  |  |  |  |  |  |  |  |  |
The Woodlands, TX | 189 |  | 75.0 |  | 28.9 |  | 28.9 |  | 3Q24 |  | 4Q24
Camden Long Meadow Farms |  |  |  |  |  |  |  |  |  |  |
Richmond, TX | 188 |  | 80.0 |  | 17.3 |  | 17.3 |  | 3Q24 |  | 4Q24
Total | 1,950 |  |  | $ | 661.0 |  |  | $ | 393.3 |  |  | $ | 270.1 |  |  |  |  |

(1) Property in lease-up and was 73% leased at April 26, 2023.
(2) Property in lease-up and was 37% leased at April 26, 2023.
Development Pipeline Communities. At March 31, 2023, we had the following multifamily communities undergoing development activities:

($ in millions) Properties and Locations | Projected Homes |  | Total Estimated Cost (1) |  | Cost to Date
Camden Blakeney |  |  |  |  |
Charlotte, NC | 349 |  | $ | 120.0 |  |  | $ | 22.7 |
Camden South Charlotte |  |  |  |  |
Charlotte, NC | 420 |  | 135.0 |  |  | 25.7 |
Camden Nations |  |  |  |  |
Nashville, TN | 393 |  | 175.0 |  |  | 35.1 |
Camden Baker |  |  |  |  |
Denver, CO | 435 |  | 165.0 |  |  | 30.3 |
Camden Paces III |  |  |  |  |
Atlanta, GA | 350 |  | 100.0 |  |  | 21.0 |
Camden Highland Village II |  |  |  |  |
Houston, TX | 300 |  | 100.0 |  |  | 9.9 |
Camden Arts District |  |  |  |  |
Los Angeles, CA | 354 |  | 150.0 |  |  | 41.7 |
Camden Gulch |  |  |  |  |
Nashville, TN | 480 |  | 260.0 |  |  | 44.9 |
Camden Downtown II |  |  |  |  |
Houston, TX | 271 |  |  | 145.0 |  |  | 13.7 |
Total | 3,352 |  |  | $ | 1,350.0 |  |  | $ | 245.0 |

(1)Represents our estimate of total costs we expect to incur on these projects. However, forward-looking estimates are not guarantees of future performance, results, or events. Although we believe these expectations are based upon reasonable assumptions, future events rarely develop exactly as forecast, and estimates routinely require adjustment.
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Results of Operations
Changes in revenues and expenses related to our operating properties from period to period are due primarily to the performance of stabilized properties in the portfolio, the lease-up of newly constructed properties, and the impact of acquisitions and dispositions.
Management considers property net operating income ("NOI") to be an appropriate supplemental measure of operating performance to net income because it reflects the operating performance of our communities without an allocation of corporate level property management overhead or general and administrative costs. We define NOI as property revenue less property operating and maintenance expenses less real estate taxes. NOI is further detailed in the Property-Level NOI table as seen below. NOI is not defined by accounting principles generally accepted in the United States of America ("GAAP") and should not be considered an alternative to net income as an indication of our operating performance. Additionally, NOI as disclosed by other REITs may not be comparable to our calculation.
Reconciliations of net income to NOI for the three months ended March 31, 2023 and 2022 are as follows:

|  | Three Months Ended March 31, |  |
(in thousands) |  | 2023 |  | 2022 |  |  |  |
Net income |  | $ | 43,619 |  |  | $ | 83,601 |  |  |  |  |
Less: Fee and asset management income |  | (578) |  |  | (2,450) |  |  |  |  |
Less: Interest and other income |  | (62) |  |  | (2,131) |  |  |  |  |
Less: (Income)/loss on deferred compensation plans |  | (5,912) |  |  | 7,497 |  |  |  |  |
Plus: Property management expense |  | 8,297 |  |  | 7,214 |  |  |  |  |
Plus: Fee and asset management expense |  | 413 |  |  | 1,175 |  |  |  |  |
Plus: General and administrative expense |  | 15,356 |  |  | 14,790 |  |  |  |  |
Plus: Interest expense |  | 32,843 |  |  | 24,542 |  |  |  |  |
Plus: Depreciation and amortization expense |  | 142,444 |  |  | 113,138 |  |  |  |  |
Plus: Expense/(benefit) on deferred compensation plans |  | 5,912 |  |  | (7,497) |  |  |  |  |
Less: Gain on sale of operating property |  | — |  |  | (36,372) |  |  |  |  |
Less: Equity in income of joint ventures |  | — |  |  | (3,048) |  |  |  |  |
Plus: Income tax expense |  | 1,150 |  |  | 590 |  |  |  |  |
Net operating income |  | $ | 243,482 |  |  | $ | 201,049 |  |  |  |  |

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Property-Level NOI (1)
Property NOI, as reconciled above, is detailed further into the following categories for the three months ended March 31, 2023 as compared to the same period in 2022:

($ in thousands) | Homes at |  | Three Months Ended March 31, |  | Change |  |  |  |
3/31/2023 |  | 2023 |  | 2022 |  | $ |  | % |  |  |  |  |  |  |  |
Property revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same store communities | 48,137 |  |  | $ | 310,126 |  |  | $ | 287,206 |  |  | $ | 22,920 |  |  | 8.0 | % |  |  |  |  |  |  |  |
Non-same store communities | 10,565 |  |  | 64,109 |  |  | 19,584 |  |  | 44,525 |  |  | * |  |  |  |  |  |  |  |
Development and lease-up communities | 1,950 |  |  | 1,344 |  |  | — |  |  | 1,344 |  |  | 100.0 |  |  |  |  |  |  |  |  |
Dispositions/Other | — |  |  | 2,584 |  |  | 4,569 |  |  | (1,985) |  |  | (43.4) |  |  |  |  |  |  |  |  |
Total property revenues | 60,652 |  |  | $ | 378,163 |  |  | $ | 311,359 |  |  | $ | 66,804 |  |  | 21.5 | % |  |  |  |  |  |  |  |
Property expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same store communities | 48,137 |  |  | $ | 108,721 |  |  | $ | 100,808 |  |  | $ | 7,913 |  |  | 7.8 | % |  |  |  |  |  |  |  |
Non-same store communities | 10,565 |  |  | 24,398 |  |  | 7,127 |  |  | 17,271 |  |  | * |  |  |  |  |  |  |  |
Development and lease-up communities | 1,950 |  |  | 492 |  |  | — |  |  | 492 |  |  | 100.0 |  |  |  |  |  |  |  |  |
Dispositions/Other | — |  |  | 1,070 |  |  | 2,375 |  |  | (1,305) |  |  | (54.9) |  |  |  |  |  |  |  |  |
Total property expenses | 60,652 |  |  | $ | 134,681 |  |  | $ | 110,310 |  |  | $ | 24,371 |  |  | 22.1 | % |  |  |  |  |  |  |  |
Property NOI: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same store communities | 48,137 |  |  | $ | 201,405 |  |  | $ | 186,398 |  |  | $ | 15,007 |  |  | 8.1 | % |  |  |  |  |  |  |  |
Non-same store communities | 10,565 |  |  | 39,711 |  |  | 12,457 |  |  | 27,254 |  |  | * |  |  |  |  |  |  |  |
Development and lease-up communities | 1,950 |  |  | 852 |  |  | — |  |  | 852 |  |  | 100.0 |  |  |  |  |  |  |  |  |
Dispositions/Other | — |  |  | 1,514 |  |  | 2,194 |  |  | (680) |  |  | (31.0) |  |  |  |  |  |  |  |  |
Total property NOI | 60,652 |  |  | $ | 243,482 |  |  | $ | 201,049 |  |  | $ | 42,433 |  |  | 21.1 | % |  |  |  |  |  |  |  |

* Not a meaningful percentage.
(1) Same store communities are communities we wholly-owned and were stabilized since January 1, 2022, excluding communities under redevelopment and properties held for sale. Non-same store communities are stabilized communities not owned or stabilized since January 1, 2022, including communities under redevelopment and excluding properties held for sale. We define communities under redevelopment as communities with capital expenditures which improve a community's cash flow and competitive position through extensive unit, exterior building, common area, and amenity upgrades. Management believes same store information is useful as it allows both management and investors to determine financial results over a particular period for the same set of communities. Development and lease-up communities are non-stabilized communities we have developed since January 1, 2022, excluding properties held for sale. Dispositions/Other includes those communities disposed of or held for sale which are not classified as discontinued operations, non-multifamily rental properties, expenses related to land holdings not under active development, and other miscellaneous revenues and expenses, including net below market leases, casualty-related expenses net of recoveries and severance related costs.
Same Store Analysis
Same store property NOI increased approximately $15.0 million for the three months ended March 31, 2023 as compared to the same period in 2022. The increase was primarily due to an increase of approximately $22.9 million in same store property revenues which was partially offset by an increase in property expenses of approximately $7.9 million.
The $22.9 million increase in same store property revenues during the three months ended March 31, 2023, as compared to the same period in 2022, was primarily due to a $21.5 million increase in rental revenues comprised of a 10.7% increase in average rental rates and higher other rental income, partially offset by lower occupancy and reletting fees, net of uncollectible revenue. The increase was also due to an increase of approximately $1.2 million in income from our utility and other rebilling programs and an increase of $0.2 million related to fees and other income.
The $7.9 million increase in same store property expenses during the three months ended March 31, 2023, as compared to the same period in 2022, was primarily due to higher property insurance expense of approximately $2.8 million, higher real estate taxes of approximately $2.7 million as a result of higher valuations at a number of our communities, higher repairs and maintenance expenses of $1.6 million, and higher utilities expense and other property expenses of $1.3 million. These increases were partially offset by a net decrease in salaries and general and administrative expenses of approximately $0.5 million, which
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was primarily due to our reducing and centralizing our workforce to manage certain responsibilities for all our communities in April 2022. The centralization of workforce is now being recorded in general and administrative expenses.
Non-same Store and Development and Lease-up Analysis
Property NOI from non-same store and development and lease-up communities increased approximately $28.1 million for the three months ended March 31, 2023 as compared to the same period in 2022. The increase in Property NOI was comprised of increases from non-same store communities of approximately $27.3 million and increases from development and lease-up communities of approximately $0.8 million for the three months ended March 31, 2023, as compared to the same period in 2022. The increase in property NOI from our non-same store communities was primarily due to our acquisition of the Funds on April 1, 2022 and the stabilization of three operating properties in 2022 and one operating property during the three months ended March 31, 2023.
The following table details the changes, described above, relating to non-same store and development and lease up NOI:

(in millions) |  | For the three months ended March 31, 2023 as compared to 2022 |  |
Property Revenues: |  |  |  |
Revenues from acquisitions |  | $ | 39.7 |  |  |
Revenues from non-same store stabilized properties |  | 3.8 |  |  |
Revenues from development and lease-up properties |  | 1.3 |  |  |
Other |  | 1.1 |  |  |
|  | $ | 45.9 |  |  |
Property Expenses: |  |  |  |
Expenses from acquisitions |  | $ | 16.0 |  |  |
Expenses from non-same store stabilized properties |  | 0.8 |  |  |
Expenses from development and lease-up properties |  | 0.5 |  |  |
Other |  | 0.5 |  |  |
|  | $ | 17.8 |  |  |
Property NOI: |  |  |  |
NOI from acquisitions |  | $ | 23.7 |  |  |
NOI from non-same store stabilized properties |  | 3.0 |  |  |
NOI from development and lease-up properties |  | 0.8 |  |  |
Other |  | 0.6 |  |  |
|  | $ | 28.1 |  |  |

Dispositions/Other Property Analysis
Dispositions/Other property NOI decreased approximately $0.7 million for the three months ended March 31, 2023 as compared to the same period in 2022. The decrease was primarily due to the disposition of one operating property in March 2022.
Non-Property Income

($ in thousands) | Three Months Ended March 31, |  | Change |  |  |  |
2023 |  | 2022 |  | $ |  | % |  |  |  |  |  |  |  |
Fee and asset management | $ | 578 |  |  | $ | 2,450 |  |  | $ | (1,872) |  |  | (76.4) | % |  |  |  |  |  |  |  |
Interest and other income | 62 |  |  | 2,131 |  |  | (2,069) |  |  | (97.1) | % |  |  |  |  |  |  |  |
Income/(loss) on deferred compensation plans | 5,912 |  |  | (7,497) |  |  | 13,409 |  |  | * |  |  |  |  |  |  |  |
Total non-property income/(loss) | $ | 6,552 |  |  | $ | (2,916) |  |  | $ | 9,468 |  |  | (324.7) | % |  |  |  |  |  |  |  |

* Not a meaningful percentage.
Fee and asset management income from property management, asset management, construction, and development activities at our joint ventures and our third-party construction projects, decreased approximately $1.9 million for the three months ended March 31, 2023 as compared to the same period in 2022. The decrease was primarily due to the consolidation of
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the Funds on April 1, 2022, and no longer having any related fee and asset management income. The decrease was also due to lower fees earned related to decreases in third-party construction activity during the three months ended March 31, 2023 as compared to the same period in 2022.
Interest and other income decreased approximately $2.1 million for the three months ended March 31, 2023 as compared to the same period in 2022. The decrease during the three months ended March 31, 2023 was primarily due to an earn-out received and recognized during the three months ended March 31, 2022 related to a technology joint venture sold in September 2020.
Our deferred compensation plans recognized income of approximately $5.9 million during the three months ended March 31, 2023 as compared to incurring a loss of approximately $7.5 million during the three months ended March 31, 2022. The changes were related to the performance of the investments held in deferred compensation plans for participants and were directly offset by the expense/(benefit) related to these plans, as discussed below.
Other Expenses

($ in thousands) | Three Months Ended March 31, |  | Change |  |  |  |
2023 |  | 2022 |  | $ |  | % |  |  |  |  |  |  |  |
Property management | $ | 8,297 |  |  | $ | 7,214 |  |  | $ | 1,083 |  |  | 15.0 | % |  |  |  |  |  |  |  |
Fee and asset management | 413 |  |  | 1,175 |  |  | (762) |  |  | (64.9) |  |  |  |  |  |  |  |  |
General and administrative | 15,356 |  |  | 14,790 |  |  | 566 |  |  | 3.8 |  |  |  |  |  |  |  |  |
Interest | 32,843 |  |  | 24,542 |  |  | 8,301 |  |  | 33.8 |  |  |  |  |  |  |  |  |
Depreciation and amortization | 142,444 |  |  | 113,138 |  |  | 29,306 |  |  | 25.9 |  |  |  |  |  |  |  |  |
Expense/(benefit) on deferred compensation plans | 5,912 |  |  | (7,497) |  |  | 13,409 |  |  | * |  |  |  |  |  |  |  |
Total other expenses | $ | 205,265 |  |  | $ | 153,362 |  |  | $ | 51,903 |  |  | 33.8 | % |  |  |  |  |  |  |  |

* Not a meaningful percentage.
Property management expense, which represents regional supervision and accounting costs related to property operations, increased approximately $1.1 million for the three months ended March 31, 2023 as compared to the same period in 2022. The increase for the three months ended March 31, 2023 was primarily related to higher salaries, benefits, and incentive compensation costs primarily due to higher regional salary related costs which were previously allocated to fee and asset management expense and now recognized in property management expense upon our consolidating the Funds on April 1, 2022. Property management expenses were 2.2% of total property revenues for the three months ended March 31, 2023 and were 2.3% of total property revenues for the three months ended March 31, 2022.
Fee and asset management expense from property management, asset management, construction, and development activities at our joint ventures and our third-party projects decreased approximately $0.8 million during the three months ended March 31, 2023 as compared to the same period in 2022. The decrease was primarily due to our consolidating the Funds on April 1, 2022, and no longer having any related fee and asset management expenses.
General and administrative expense increased approximately $0.6 million during the three months ended March 31, 2023 as compared to the same period in 2022. Excluding income/(loss) on deferred compensation plans, general and administrative expenses were 4.1% and 4.7% of total revenues for the three months ended March 31, 2023 and 2022, respectively.
Interest expense increased approximately $8.3 million for the three months ended March 31, 2023 as compared to the same period in 2022. The increase was primarily due to an increase in interest expense related to our assuming approximately $515 million of secured mortgage debt upon completion of the acquisition of the Funds on April 1, 2022. The increase was also due to interest expense related to a $300 million term loan entered into in December 2022 and higher interest expense recognized on our unsecured revolving credit facility resulting from higher interest rates and an increase in average balances outstanding. The increase was partially offset by lower interest expense related to the repayment of a $350 million, 3.15% senior unsecured note payable in December 2022 and higher capitalized interest during the three months ended March 31, 2023 resulting from higher interest rates on our unsecured revolving credit facility.
Depreciation and amortization expense increased approximately $29.3 million for the three months ended March 31, 2023 as compared to the same period in 2022. The increase was primarily due to higher depreciation related to our acquisition of the Funds on April 1, 2022, and the completion of apartment homes in our development pipeline and the completion of repositions during 2022 and 2023. The increase was partially offset by higher amortization of in-place leases during the three months ended March 31, 2022 related to the acquisition of one operating property in August 2021 and one operating property in October 2021.
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Our deferred compensation plans incurred an expense of approximately $5.9 million for the three months ended March 31, 2023 as compared to recognizing a benefit of approximately $7.5 million during the three months ended March 31, 2022. The changes were related to the performance of the investments held in deferred compensation plans for participants and were directly offset by the income/(loss) related to these plans, as discussed in the non-property income section above.
Other

| Three Months Ended March 31, |  | Change |  |  |  |
($ in thousands) | 2023 |  | 2022 |  | $ |  | % |  |  |  |  |  |  |  |
Gain on sale of operating property | $ | — |  |  | $ | 36,372 |  |  | $ | (36,372) |  |  | — | % |  |  |  |  |  |  |  |
Equity in income of joint ventures | $ | — |  |  | $ | 3,048 |  |  | $ | (3,048) |  |  | (100.0) | % |  |  |  |  |  |  |  |
Income tax expense | $ | (1,150) |  |  | $ | (590) |  |  | $ | (560) |  |  | 94.9 | % |  |  |  |  |  |  |  |

The $36.4 million gain on sale during the three months ended March 31, 2022 was due to the disposition of one operating property located in Largo, Maryland.
Equity in income of joint ventures decreased approximately $3.0 million for the three months ended March 31, 2023, as compared to the same period in 2022. The decrease was due to our consolidating the Funds on April 1, 2022.
Income tax expense increased approximately $0.6 million for the three months ended March 31, 2023, respectively, as compared to the same period in 2022. The increase was primarily due to higher state income taxes due to our acquiring the Funds on April 1, 2022, partially offset by a decrease in taxable income due to lower third-party construction activities in a taxable REIT subsidiary.
Funds from Operations ("FFO"), Core FFO, and Core Adjusted FFO ("Core AFFO")
Management considers FFO, Core FFO, and Core AFFO to be appropriate supplementary measures of the financial performance of an equity REIT. The National Association of Real Estate Investment Trusts ("NAREIT") currently defines FFO in accordance with the 2018 NAREIT FFO White Paper which defines FFO as net income (computed in accordance with 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 represents FFO as further adjusted for items not considered part of our core business operations. We consider Core FFO to be a helpful supplemental measure of operating performance as it excludes not only depreciation expense of real estate assets, but it also excludes certain items which by their nature are not comparable period over period and therefore tends to obscure actual operating performance. Our definition of Core FFO may differ from other REITs, and there can be no assurance our basis for computing this measure is comparable to other REITs.
Core AFFO is calculated utilizing Core FFO less recurring capitalized expenditures which are necessary to help preserve the value of and maintain the functionality at our communities. We also consider Core AFFO to be a useful supplemental measure because it is frequently used by analysts and investors to evaluate a REIT's operating performance between periods or to different companies. 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.
To facilitate a clear understanding of our consolidated historical operating results, we believe FFO, Core FFO, and Core AFFO should be examined in conjunction with net income attributable to common shareholders as presented in the condensed consolidated statements of income and comprehensive income and data included elsewhere in this report. FFO, Core FFO, and Core AFFO are not defined by GAAP and should not be considered alternatives to net income attributable to common shareholders as an indication of our operating performance. Additionally, FFO, Core FFO, and Core AFFO as disclosed by other REITs may not be comparable to our calculation.
Reconciliations of net income attributable to common shareholders to FFO, Core FFO, and Core AFFO for the three months ended March 31, 2023 and 2022 are as follows:
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| Three Months Ended March 31, |  |
($ in thousands) | 2023 |  | 2022 |  |  |  |
Funds from operations |  |  |  |  |  |  |
Net income attributable to common shareholders | $ | 41,917 |  |  | $ | 80,745 |  |  |  |  |
Real estate depreciation and amortization | 139,387 |  |  | 110,537 |  |  |  |  |
Adjustments for unconsolidated joint ventures | — |  |  | 2,709 |  |  |  |  |
Gain on sale of operating property | — |  |  | (36,372) |  |  |  |  |
Income allocated to non-controlling interests | 1,702 |  |  | 2,856 |  |  |  |  |
Funds from operations | $ | 183,006 |  |  | $ | 160,475 |  |  |  |  |
Net below market leases | — |  |  | (861) |  |  |  |  |
Casualty-related expenses, net of (recoveries) | (42) |  |  | — |  |  |  |  |
Severance | — |  |  | 896 |  |  |  |  |
Legal costs and settlements | 84 |  |  | — |  |  |  |  |
Miscellaneous (income)/expense (1) | — |  |  | (1,877) |  |  |  |  |
Core funds from operations | $ | 183,048 |  |  | $ | 158,633 |  |  |  |  |
Less: recurring capitalized expenditures | (17,579) |  |  | (14,251) |  |  |  |  |
Core adjusted funds from operations | $ | 165,469 |  |  | $ | 144,382 |  |  |  |  |
Weighted average shares – basic | 108,568 |  |  | 105,336 |  |  |  |  |
Incremental shares issuable from assumed conversion of: |  |  |  |  |  |  |
Share awards granted | 36 |  |  | 83 |  |  |  |  |
Common units | 1,597 |  |  | 1,606 |  |  |  |  |
Weighted average shares – diluted | 110,201 |  |  | 107,025 |  |  |  |  |

(1) Three months ended March 31, 2022 activity relates to proceeds from earn-out from previously sold technology investment.
Liquidity and Capital Resources
Financial Condition and Sources of Liquidity
We intend to maintain a strong balance sheet and preserve our financial flexibility, which we believe should enhance our ability to identify and capitalize on investment opportunities as they become available. We intend to maintain what management believes is a conservative capital structure by:
•extending and sequencing the maturity dates of our debt where practicable;
•managing interest rate exposure using what management believes to be prudent levels of fixed and floating rate debt;
•maintaining what management believes to be conservative coverage ratios; and
•using what management believes to be a prudent combination of debt and equity.
Our interest expense coverage ratio, net of capitalized interest, was approximately 6.7 and 7.4 for the three months ended March 31, 2023 and 2022, respectively. This ratio is a method for calculating the amount of operating cash flows available to cover interest expense and is calculated by dividing interest expense for the period into the sum of property revenues and expenses, non-property income, and other expenses, after adding back depreciation, amortization, and interest expense. Approximately 84.0% and 100% of our properties were unencumbered as of March 31, 2023 and 2022, respectively. Our weighted average maturity of debt was approximately 6.1 years at March 31, 2023.
Our primary sources of liquidity is cash flows generated from operations. Other sources may include one or more of the following: availability under our unsecured revolving credit facility, the use of debt and equity offerings under our automatic shelf registration statement, proceeds from property dispositions, equity issued from our ATM programs, and other unsecured borrowings or secured mortgages. We believe our liquidity and financial condition are sufficient to meet all of our reasonably anticipated cash needs during the next twelve months from our filing date including:
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•normal recurring operating expenses;
•current debt service requirements including scheduled debt maturities;
•recurring and non-recurring capital expenditures;
•funding of property developments, repositions, redevelopments, and acquisitions; and
•the minimum dividend payments required to maintain our REIT qualification under the Code.
Factors which could increase or decrease our future liquidity include but are not limited to volatility in capital and credit markets, changes in rent control or rent stabilization laws, sources of financing, the minimum REIT dividend requirements, our ability to complete asset purchases, sales, or developments, the effect our debt level and changes in credit ratings could have on our cost of funds, and our ability to access capital markets.
Cash Flows
At March 31, 2023, we had cash, cash equivalents and restricted cash of approximately $27.3 million as compared to $1.1 billion at March 31, 2022. On April 1, 2022, we purchased the remaining 68.7% ownership interests in the Funds for cash consideration of $1.1 billion, after adjusting for assumption of $515 million of existing secured mortgage debt of the Funds which remained outstanding. We funded this transaction with cash on hand. The following is further discussion of our cash flows for the three months ended March 31, 2023 as compared to the same period in 2022.
Net cash from operating activities was approximately $139.7 million during the three months ended March 31, 2023 as compared to approximately $122.3 million for the same period in 2022. The increase was primarily due to the increase in cash from property operations due to the acquisition of the Funds on April 1, 2022, and the growth attributable to our same store, non-same store and development and lease-up communities. The increase was partially offset by higher real estate tax payments related to the acquisition of the Funds. See further discussion of our 2023 operations as compared to 2022 in "Results of Operations."
Net cash used in investing activities during the three months ended March 31, 2023 totaled approximately $93.5 million as compared to $48.9 million during the same period in 2022. Cash outflows during the three months ended March 31, 2023 primarily related to amounts paid for property development and capital improvements of approximately $91.9 million. Cash outflows during the three months ended March 31, 2022 primarily related to amounts paid for property developments and capital improvements of approximately $90.5 million, and an increase in earnest money of approximately $23.2 million primarily related to an acquisition of a 42.6 acre land parcel completed in April 2022. These outflows were partially offset by net proceeds from the sale of one operating property of approximately $70.5 million. The increase in property development and capital improvements for the three months ended March 31, 2023, as compared to the same period in 2022, was primarily due to higher reposition expenditures, partially offset by the acquisition of approximately 15.9 acres of land in 2022, and the timing and completion of two operating properties in 2023 and 2022. The property development and capital improvements during the three months ended March 31, 2023 and 2022, included the following:

|  | Three Months Ended March 31,
(in millions) |  | 2023 |  | 2022
Expenditures for new development, including land |  | $ | 40.5 |  |  | $ | 48.5 |
Capital expenditures |  | 20.6 |  |  | 20.3 |
Reposition expenditures |  | 21.0 |  |  | 14.3 |
Direct real estate taxes and capitalized interest and other indirect costs |  | 9.8 |  |  | 7.4 |
Total |  | $ | 91.9 |  |  | $ | 90.5 |

Net cash used in financing activities totaled approximately $36.3 million for the three months ended March 31, 2023 as compared to net cash from financing activities of $443.1 million during the same period in 2022. Cash outflows during the three months ended March 31, 2023 primarily related to $103.6 million used for distributions to common shareholders and non-controlling interest holders, partially offset by net proceeds of $66.0 million of borrowings from our unsecured revolving credit facility. Cash inflows during the three months ended March 31, 2022 primarily related to net proceeds of $500.0 million of borrowings from our unsecured revolving credit facility, and net proceeds of $26.2 million from the issuance of approximately 0.2 million common shares from our ATM programs. These cash inflows during 2022 were partially offset by $88.8 million used for distributions to common shareholders and non-controlling interest holders.
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Financial Flexibility
We have a $1.2 billion unsecured revolving credit facility which matures in August 2026, with two options to extend the facility at our election for two consecutive six-month periods and to expand the facility up to three times by up to an additional $500 million upon satisfaction of certain conditions. The interest rate on our unsecured revolving credit facility is based upon SOFR plus a spread which is subject to change as our credit ratings change. Advances under our revolving credit facility may be priced at the scheduled rates, or we may enter into bid rate loans with participating banks at rates below the scheduled rates. These bid rate loans have terms of 180 days or less and may not exceed the lesser of $600 million or the remaining amount available under our revolving credit facility. Our revolving credit facility is subject to customary financial covenants and limitations. We believe we are in compliance with all such financial covenants and limitations as of March 31, 2023 and through the date of this filing.
Our unsecured revolving credit facility provides us with the ability to issue up to $50 million in letters of credit. While our issuance of letters of credit does not increase our borrowings outstanding under our revolving credit facility, it does reduce the amount available. At March 31, 2023, we had outstanding letters of credit totaling approximately $14.2 million, and approximately $1.1 billion available under our unsecured revolving credit facility.
In May 2022, we created an ATM share offering program through which we can, but have no obligation to, sell common shares and we may also enter into separate forward sale agreements with forward purchasers for an aggregate offering amount of up to $500.0 million (the "2022 ATM program"), in amounts and at times as we determine, into the existing trading market at current market prices as well as through negotiated transactions. Actual sales from time to time may depend on a variety of factors including, among others, market conditions, the trading price of our common shares, and determinations by management of the appropriate sources of funding for us. The proceeds from the sale of our common shares under the 2022 ATM program are intended to be used for general corporate purposes, which may include reducing future borrowings under our unsecured revolving credit facility, the repayment of other indebtedness, the redemption or other repurchase of outstanding debt or equity securities, funding for development activities, and financing for acquisitions. As of the date of this filing, we have not sold any shares or entered into any forward sales agreement and have common shares having an aggregate offering amount of up to $500.0 million remaining available for sale under this ATM program.
We believe our ability to access capital markets is enhanced by our senior unsecured debt ratings by Moody's, Fitch, and Standard and Poor's, which are currently A3 with stable outlook, A- with stable outlook, and A- with stable outlook, respectively. We believe our ability to access capital markets is also enhanced by our ability to borrow on a secured basis from various institutions including banks, Fannie Mae, Freddie Mac, or life insurance companies. However, we may not be able to maintain our current credit ratings and or borrow on a secured or unsecured basis in the future.
Future Cash Requirements and Contractual Obligations
One of our principal long-term liquidity requirements includes the repayment of maturing debt, including any future borrowings under our unsecured revolving credit facility. We believe scheduled repayments of debt due during the next 12 months are manageable at approximately $500.0 million which represents approximately 13.3% of our total outstanding debt, and excludes amortization of debt discounts, and debt issuance costs. See Note 7, "Notes Payable," in the notes to Condensed Consolidated Financial Statements for a further discussion of our scheduled maturities.
As of March 31, 2023, we estimated the additional cost to complete the construction of six properties to be approximately $267.7 million. Of this amount, we expect to incur costs between approximately $175 million and $185 million during the remainder of 2023 and to incur the remaining costs during 2024 through 2025. Additionally, we expect to incur costs between approximately $60 million and $80 million related to the start of new development activities, between approximately $80 million and $84 million of repositions, redevelopment, repurposes, and revenue enhancing expenditures and between approximately $80 million and $84 million of additional recurring capital expenditures.
We anticipate meeting our near-term liquidity requirements through a combination of one or more of the following: cash flows generated from operations, draws on our unsecured revolving credit facility, the use of debt and equity offerings under our automatic shelf registration statement, proceeds from property dispositions, equity issued from our ATM programs, and other unsecured borrowings or secured mortgages. We continue to evaluate our portfolio and plan to continue our practice of selective dispositions as market conditions warrant and opportunities arise.
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As a REIT, we are subject to a number of organizational and operational requirements, including a requirement to distribute current dividends to our shareholders equal to a minimum of 90% of our annual taxable income. In order to minimize paying income taxes, our general policy is to distribute at least 100% of our taxable income. In February 2023, our Board of Trust Managers declared a quarterly dividend of $1.00 per common share to our common shareholders of record as of March 31, 2023. The quarterly dividend was subsequently paid on April 17, 2023, and we paid equivalent amounts per unit to holders of the common operating partnership units. Assuming similar quarterly dividend distributions for the remainder of 2023, our annualized dividend rate would be $4.00 per share or unit.
Critical Accounting Policies
Our critical accounting policies have not changed from the information reported in our Annual Report on Form 10-K for the year ended December 31, 2022.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
No material changes to our exposures to market risk have occurred since our Annual Report on Form 10-K for the year ended December 31, 2022.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures. We carried out an evaluation, under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report pursuant to Securities Exchange Act ("Exchange Act") Rules 13a-15(e) and 15d-15(e). Based on the evaluation, the Chief Executive Officer and Chief Financial Officer concluded the disclosure controls and procedures as of the end of the period covered by this report are effective to ensure information required to be disclosed by us in our Exchange Act filings is accurately recorded, processed, summarized, and reported within the periods specified in the Securities and Exchange Commission's rules and forms and is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
Changes in Internal Controls. There were no changes in our internal control over financial reporting (identified in connection with the evaluation required by paragraph (d) in Rules 13a-15 and 15d-15 under the Exchange Act) during our most recent fiscal quarter which have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 1A. Risk Factors
For a discussion of our potential risks and uncertainties, see the risk factor below and those presented in our Annual Report on Form 10-K, Part 1, Item 1A, for the year ended December 31, 2022.
Risks Associated with Capital Markets, Credit Markets, and Real Estate
Because of the recent deterioration of the credit and capital markets, we may be unable to obtain debt financing from sources other than our unsecured revolving credit facility on acceptable terms or at all.
In efforts to curb potential rising inflation, the Federal Reserve has continued to increase interest rates. Additionally, as a result of concern about the recent deterioration in the financial markets, including the recent failures of banks, the cost of obtaining debt from credit and capital markets has increased as many lenders have increased interest rates, enacted tighter lending standards and reduced and, in some cases, ceased to provide funding to borrowers. If we need to incur debt from a source other than our unsecured revolving credit facility, we cannot be certain the additional financing will be available to the extent required and on acceptable terms. If debt financing on acceptable terms is not available, we may be unable to fully execute our growth strategy, otherwise take advantage of business opportunities, or respond to competitive pressures, any of which could have a material adverse effect on our results of operations and financial condition.
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
There were no unregistered sales of our equity securities for the three months ended March 31, 2023.
Item 3. Defaults Upon Senior Securities
None
Item 4. Mine Safety Disclosures
None
Item 5. Other Information
None
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Item 6. Exhibits

(a) Exhibits |  |
3.1 |  | Fifth Amended and Restated Bylaws of Camden Property Trust (incorporated by reference to Exhibit 3.1 to the Company's current Report on Form 8-K filed on February 24, 2023 (File No. 1-12110))
3.2 |  | First Amendment to the Sixth Amended and Restated Bylaws of Camden Property Trust (incorporated by reference to Exhibit 3.1 to the Company's current Report on Form 8-K filed on April 27, 2023 (File No. 1-12110))
*31.1 |  | Certification pursuant to Rule 13a-14(a) of Chief Executive Officer dated April 28, 2023
*31.2 |  | Certification pursuant to Rule 13a-14(a) of Chief Financial Officer dated April 28, 2023
*32.1 |  | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes – Oxley Act of 2002
*101.INS |  | XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document.
*101.SCH |  | XBRL Taxonomy Extension Schema Document
*101.CAL |  | XBRL Taxonomy Extension Calculation Linkbase Document
*101.DEF |  | XBRL Taxonomy Extension Definition Linkbase Document
*101.LAB |  | XBRL Taxonomy Extension Label Linkbase Document
*101.PRE |  | XBRL Taxonomy Extension Presentation Linkbase Document
*104 |  | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Filed herewith.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on our behalf by the undersigned thereunto duly authorized.

|  | CAMDEN PROPERTY TRUST
/s/ Michael P. Gallagher |  | April 28, 2023
Michael P. Gallagher |  | Date
Senior Vice President – Chief Accounting Officer |  |

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