Item 16. Summary

None.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, Camden Property Trust has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

February 15, 2019				CAMDEN PROPERTY TRUST
				By:		/s/ Michael P. Gallagher
						Michael P. Gallagher
						Senior Vice President — Chief Accounting Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of Camden Property Trust and in the capacities and on the dates indicated.

Name		Title		Date
/s/ Richard J. Campo		Chairman of the Board of Trust		February 15, 2019
Richard J. Campo		Managers and Chief Executive Officer (Principal Executive Officer)
/s/ D. Keith Oden		President and Trust Manager		February 15, 2019
D. Keith Oden
/s/ Alexander J. Jessett		Executive Vice President - Finance,		February 15, 2019
Alexander J. Jessett		Chief Financial Officer and Treasurer (Principal Financial Officer)
/s/ Michael P. Gallagher		Senior Vice President - Chief Accounting		February 15, 2019
Michael P. Gallagher		Officer (Principal Accounting Officer)
*
Heather J. Brunner		Trust Manager		February 15, 2019
*
Scott S. Ingraham		Trust Manager		February 15, 2019
*
Renu Khator		Trust Manager		February 15, 2019
*
William B. McGuire, Jr.		Trust Manager		February 15, 2019
*
William F. Paulsen		Trust Manager		February 15, 2019
*
Frances Aldrich Sevilla-Sacasa		Trust Manager		February 15, 2019
*
Steven A. Webster		Trust Manager		February 15, 2019
*
Kelvin R. Westbrook		Trust Manager		February 15, 2019
*By: /s/ Alexander J. Jessett
Alexander J. Jessett Attorney-in-fact

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and the Board of Trust Managers of Camden Property Trust

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Camden Property Trust and subsidiaries (the "Company") as of December 31, 2018 and 2017, the related consolidated statements of income and comprehensive income, equity, and cash flows, for each of the three years in the period ended December 31, 2018, and the related notes and the schedules listed in the Index at Item 15 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2018 and 2017, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2018, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 15, 2019, expressed an unqualified opinion on the Company's internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ DELOITTE & TOUCHE LLP
Houston, Texas
February 15, 2019
We have served as the Company's auditor since 1993.

CAMDEN PROPERTY TRUST

CONSOLIDATED BALANCE SHEETS

	December 31,
(in thousands, except per share amounts)	2018				2017
Assets
Real estate assets, at cost
Land	$	1,098,526			$	1,021,031
Buildings and improvements	6,935,971				6,269,481
	$	8,034,497			$	7,290,512
Accumulated depreciation	(2,403,149		)		(2,118,839		)
Net operating real estate assets	$	5,631,348			$	5,171,673
Properties under development, including land	293,978				377,231
Investments in joint ventures	22,283				27,237
Total real estate assets	$	5,947,609			$	5,576,141
Accounts receivable – affiliates	22,920				24,038
Other assets, net	205,454				195,764
Cash and cash equivalents	34,378				368,492
Restricted cash	9,225				9,313
Total assets	$	6,219,586			$	6,173,748
Liabilities and equity
Liabilities
Notes payable
Unsecured	$	1,836,427			$	1,338,628
Secured	485,176				865,970
Accounts payable and accrued expenses	146,866				128,313
Accrued real estate taxes	54,358				51,383
Distributions payable	74,982				72,943
Other liabilities	183,999				154,567
Total liabilities	$	2,781,808			$	2,611,804
Commitments and contingencies (Note 15)
Non-qualified deferred compensation share awards	52,674				77,230
Equity
Common shares of beneficial interest; $0.01 par value per share; 175,000 shares authorized; 105,503 and 105,489 issued; 103,080 and 102,769 outstanding at December 31, 2018 and 2017, respectively	1,031				1,028
Additional paid-in capital	4,154,763				4,137,161
Distributions in excess of net income attributable to common shareholders	(495,496		)		(368,703		)
Treasury shares, at cost (9,841 and 10,073 common shares, at December 31, 2018 and 2017, respectively)	(355,804		)		(364,066		)
Accumulated other comprehensive income (loss)	6,929				(57		)
Total common equity	$	3,311,423			$	3,405,363
Non-controlling interests	73,681				79,351
Total equity	$	3,385,104			$	3,484,714
Total liabilities and equity	$	6,219,586			$	6,173,748

See Notes to Consolidated Financial Statements.

CAMDEN PROPERTY TRUST

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

	Year Ended December 31,
(in thousands, except per share amounts)	2018				2017				2016
Property revenues
Rental revenues	$	842,047			$	770,540			$	750,597
Other property revenues	112,458				130,356				125,850
Total property revenues	$	954,505			$	900,896			$	876,447
Property expenses
Property operating and maintenance	$	220,732			$	217,817			$	206,780
Real estate taxes	122,847				110,925				104,575
Total property expenses	$	343,579			$	328,742			$	311,355
Non-property income
Fee and asset management	$	7,231			$	8,176			$	6,864
Interest and other income	2,101				3,011				2,202
Income (loss) on deferred compensation plans	(6,535		)		16,608				5,511
Total non-property income	$	2,797			$	27,795			$	14,577
Other expenses
Property management	$	25,581			$	25,773			$	25,125
Fee and asset management	4,451				3,903				3,848
General and administrative	50,735				50,587				47,415
Interest	84,263				86,750				93,145
Depreciation and amortization	300,946				263,974				250,146
Expense (benefit) on deferred compensation plans	(6,535		)		16,608				5,511
Total other expenses	$	459,441			$	447,595			$	425,190
Loss on early retirement of debt	—				(323		)		—
Gain on sale of operating properties, including land	—				43,231				295,397
Equity in income of joint ventures	7,836				6,822				7,125
Income from continuing operations before income taxes	$	162,118			$	202,084			$	457,001
Income tax expense	(1,424		)		(1,224		)		(1,617		)
Income from continuing operations	$	160,694			$	200,860			$	455,384
Income from discontinued operations	—				—				7,605
Gain on sale of discontinued operations, net of tax	—				—				375,237
Net income	$	160,694			$	200,860			$	838,226
Less income allocated to non-controlling interests from continuing operations	(4,566		)		(4,438		)		(18,403		)
Net income attributable to common shareholders	$	156,128			$	196,422			$	819,823

See Notes to Consolidated Financial Statements.

CAMDEN PROPERTY TRUST

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Continued)

	Year Ended December 31,
(In thousands, except per share amounts)	2018				2017				2016
Earnings per share – basic
Earnings per common share from continuing operations	$	1.63			$	2.14			$	4.81
Earnings per common share from discontinued operations	—				—				4.27
Total earnings per common share – basic	$	1.63			$	2.14			$	9.08
Earnings per share – diluted
Earnings per common share from continuing operations	$	1.63			$	2.13			$	4.79
Earnings per common share from discontinued operations	—				—				4.26
Total earnings per common share – diluted	$	1.63			$	2.13			$	9.05
Weighted average number of common shares outstanding – basic	95,208				91,499				89,580
Weighted average number of common shares outstanding – diluted	95,366				92,515				89,903
Net income attributable to common shareholders
Income from continuing operations	$	160,694			$	200,860			$	455,384
Less income allocated to non-controlling interests from continuing operations	(4,566		)		(4,438		)		(18,403		)
Income from continuing operations attributable to common shareholders	$	156,128			$	196,422			$	436,981
Income from discontinued operations, including gain on sale	$	—			$	—			$	382,842
Net income attributable to common shareholders	$	156,128			$	196,422			$	819,823
Consolidated Statements of Comprehensive Income
Net income	$	160,694			$	200,860			$	838,226
Other comprehensive income
Unrealized gain on cash flow hedging activities	6,782				1,690				—
Unrealized gain (loss) and unamortized prior service cost on post retirement obligation	450				(20		)		(80		)
Reclassification of net (gain) loss on cash flow hedging activities, prior service cost and net loss on post retirement obligation	(246		)		136				130
Comprehensive income	$	167,680			$	202,666			$	838,276
Less income allocated to non-controlling interests from continuing operations	(4,566		)		(4,438		)		(18,403		)
Comprehensive income attributable to common shareholders	$	163,114			$	198,228			$	819,873

See Notes to Consolidated Financial Statements.

CAMDEN PROPERTY TRUST

CONSOLIDATED STATEMENTS OF EQUITY

	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				Non-controlling interests				Total equity
Equity, December 31, 2015	$	976			$	3,662,864			$	(458,577	)		$	(386,793	)		$	(1,913	)		$	76,339			$	2,892,896
Net income									819,823												18,403				838,226
Other comprehensive income																	50								50
Net share awards					15,213								9,783												24,996
Employee share purchase plan					944								753												1,697
Common share options exercised (45 shares)					1,003								2,918												3,921
Change in classification of deferred compensation plan					(13,956		)																		(13,956		)
Change in redemption value of non-qualified share awards									(9,145		)														(9,145		)
Diversification of share awards within deferred compensation plan					11,931				13,497																25,428
Conversions/redemptions of operating partnership units (8 shares)					290																(370		)		(80		)
Cash distributions declared to equity holders ($7.25 per share)									(654,778		)										(13,692		)		(668,470		)
Other	2				(12		)																		(10		)
Equity, December 31, 2016	$	978			$	3,678,277			$	(289,180	)		$	(373,339	)		$	(1,863	)		$	80,680			$	3,095,553
Net income									196,422												4,438				200,860
Other comprehensive income																	1,806								1,806
Common shares issued (4,778 shares)	48				444,990																				445,038
Net share awards					15,779								8,177												23,956
Employee share purchase plan					1,030								686												1,716
Common share options exercised (11 shares)					521								410												931
Change in classification of deferred compensation plan					(13,388		)																		(13,388		)
Change in redemption value of non-qualified share awards									(10,038		)														(10,038		)
Diversification of share awards within deferred compensation plan					10,159				13,074																23,233
Conversions of operating partnership units (3 shares)					117																(117		)		—
Cash distributions declared to equity holders ($3.00 per share)									(278,981		)										(5,650		)		(284,631		)
Other	2				(324		)																		(322		)
Equity, December 31, 2017	$	1,028			$	4,137,161			$	(368,703	)		$	(364,066	)		$	(57	)		$	79,351			$	3,484,714

See Notes to Consolidated Financial Statements.

CAMDEN PROPERTY TRUST

CONSOLIDATED STATEMENTS OF EQUITY (Continued)

	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				Non-controlling interests				Total equity
Equity, December 31, 2017	$	1,028			$	4,137,161			$	(368,703	)		$	(364,066	)		$	(57	)		$	79,351			$	3,484,714
Net income									156,128												4,566				160,694
Other comprehensive income																	6,986								6,986
Net share awards					13,720								7,961												21,681
Employee share purchase plan					826								554												1,380
Common share options exercised (8 shares)					41								—												41
Change in classification of deferred compensation plan					(16,407		)																		(16,407		)
Change in redemption value of non-qualified share awards									669																669
Diversification of share awards within deferred compensation plan					29,379				10,915																40,294
Common shares repurchased													(253		)										(253		)
Conversions/redemptions of operating partnership units (2 shares)					(9,781		)														(4,634		)		(14,415		)
Cash distributions declared to equity holders ($3.08 per share)									(294,505		)										(5,602		)		(300,107		)
Other	3				(176		)																		(173		)
Equity, December 31, 2018	$	1,031			$	4,154,763			$	(495,496	)		$	(355,804	)		$	6,929			$	73,681			$	3,385,104

See Notes to Consolidated Financial Statements.

CAMDEN PROPERTY TRUST

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Year Ended December 31,
(in thousands)	2018				2017				2016
Cash flows from operating activities
Net income	$	160,694			$	200,860			$	838,226
Net income from discontinued operations, including gain on sale	—				—				(382,842		)
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	300,946				263,974				250,146
Loss on early retirement of debt	—				323				—
Gain on sale of operating properties, including land	—				(43,231		)		(295,397		)
Distributions of income from joint ventures	7,736				6,851				7,057
Equity in income of joint ventures	(7,836		)		(6,822		)		(7,125		)
Share-based compensation	16,749				17,547				20,123
Receipts for settlement of forward interest rate swaps	15,905				—				—
Net change in operating accounts and other	9,553				(4,846		)		281
Net cash from continuing operating activities	$	503,747			$	434,656			$	430,469
Net cash from discontinued operating activities	—				—				12,594
Net cash from operating activities	$	503,747			$	434,656			$	443,063
Cash flows from investing activities
Development and capital improvements, including land	$	(359,230	)		$	(299,086	)		$	(342,952	)
Acquisition of operating property	(290,005		)		(58,267		)		—
Proceeds from sales of operating properties, including land	11,296				76,902				515,754
Purchase of short-term investments	—				—				(100,000		)
Increase in non-real estate assets	(14,503		)		(5,128		)		(2,580		)
Decrease (increase) in notes receivable	9,475				(1,988		)		(4,063		)
Maturity of short-term investments	—				100,000				—
Other	2,046				(2,187		)		3,161
Net cash from continuing investing activities	$	(640,921	)		$	(189,754	)		$	69,320
Proceeds from discontinued operations, including land	—				—				622,982
Net cash from discontinued investing activities	—				—				(1,890		)
Net cash from investing activities	$	(640,921	)		$	(189,754	)		$	690,412

See Notes to Consolidated Financial Statements.

CAMDEN PROPERTY TRUST

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

	Year Ended December 31,
(in thousands)	2018				2017				2016
Cash flows from financing activities
Borrowings on unsecured credit facility and other short-term borrowings	$	342,000			$	465,000			$	1,305,000
Repayments on unsecured credit facility and other short-term borrowings	(342,000		)		(465,000		)		(1,549,000		)
Repayment of notes payable	(381,438		)		(278,999		)		(3,077		)
Distributions to common shareholders and non-controlling interests	(298,005		)		(280,761		)		(663,363		)
Proceeds from notes payable	495,545				—				—
Proceeds from issuance of common shares	—				445,038				—
Repurchase of common shares and redemption of units	(14,668		)		—				—
Other	1,538				1,799				6,203
Net cash from financing activities	$	(197,028	)		$	(112,923	)		$	(904,237	)
Net increase (decrease) in cash, cash equivalents, and restricted cash	(334,202		)		131,979				229,238
Cash, cash equivalents, and restricted cash, beginning of year	377,805				245,826				16,588
Cash, cash equivalents, and restricted cash, end of year	$	43,603			$	377,805			$	245,826
Reconciliation of cash, cash equivalents, and restricted cash to the Consolidated Balance Sheet
Cash and cash equivalents	$	34,378			$	368,492			$	237,364
Restricted cash	9,225				9,313				8,462
Total cash, cash equivalents, and restricted cash, end of year	43,603				377,805				245,826
Supplemental information
Cash paid for interest, net of interest capitalized	$	81,299			$	88,654			$	93,302
Cash paid for income taxes	1,951				1,705				2,424
Supplemental schedule of noncash investing and financing activities
Distributions declared but not paid	$	74,982			$	72,943			$	69,161
Value of shares issued under benefit plans, net of cancellations	17,253				18,061				19,006
Accrual associated with construction and capital expenditures	35,588				19,016				22,762

See Notes to Consolidated Financial Statements.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Description of Business

Business. Formed on May 25, 1993, Camden Property Trust, 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 December 31, 2018, we owned interests in, operated, or were developing 167 multifamily properties comprised of 56,858 apartment homes across the United States. Of the 167 properties, six properties were under construction, and will consist of a total of 1,698 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 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, authority to make decisions, kick-out rights and participating rights. As of December 31, 2018, two of our consolidated operating partnerships are VIEs. We are considered the primary beneficiary of both consolidated operating partnerships and therefore consolidate these operating partnerships. We hold the sole 1% general partnership interest in each of these consolidated operating partnership VIEs. During the year ended December 31, 2018, certain unit holders of one of these consolidated operating partnerships redeemed their operating partnership units in exchange for cash consideration of approximately $14.4 million, and as of December 31, 2018, we held approximately 95% of the outstanding common limited partnership units. We held approximately 92% of the outstanding common limited partnership units of the other consolidated operating partnership as of December 31, 2018.

Acquisitions of Real Estate. Upon 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.

During the year ended December 31, 2018 and 2017, we recognized amortization expense of approximately $9.4 million and $1.3 million, respectively, related to in-place leases. We recognized revenue of approximately $0.2 million related to net below market leases for the year ended December 31, 2018, and did not recognize any revenue related to net below market leases for the year ended December 31, 2017. During the year ended December 31, 2018, the weighted average amortization periods for in-place and net below market leases were approximately seven months and five months, respectively. During the year ended December 31, 2017, the weighted average amortization period for in-place leases was approximately six months. We did not recognize any revenue or amortization expense related to below market or in-place leases for the year ended December 31, 2016.

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. In estimating fair value, management uses appraisals, management estimates, and discounted cash flow calculations which utilize inputs from a marketplace participant’s perspective. When impairment exists, the long-lived asset is adjusted to its fair value. In addition, we evaluate our equity investments in joint ventures and if we believe there is an other than temporary decline in market value of our investment below our carrying value, we will record an impairment charge. We did not record any impairment charges for the years ended December 31, 2018, 2017, or 2016.

The value of our properties under development depends on market conditions, including estimates of the project start date as well as estimates of demand for multifamily communities. We have reviewed market trends and other marketplace information

and have 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 on our consolidated financial position and results of operations.

Cash and Cash Equivalents. All cash and investments in money market accounts and other highly liquid securities with a maturity of three months or less at the date of purchase are considered to be cash and cash equivalents. We maintain the majority of our cash and cash equivalents at major financial institutions in the United States and deposits with these financial institutions may exceed the amount of insurance provided on such deposits; however, we regularly monitor the financial stability of these financial institutions and believe we are not currently exposed to any significant default risk with respect to these deposits.

Short-term Investments. Our short-term investments consisted of certificates of deposit which have original maturities of more than three months but less than one year.

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. 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 activities necessary to prepare the underlying real estate for its intended use have been initiated. All construction and certain 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 completed, the total capitalized development cost of each apartment home is transferred from properties under development including land to buildings and improvements.

As discussed above, carrying charges are principally interest and real estate taxes capitalized as part of properties under development. Capitalized interest was approximately $13.6 million, $15.2 million, and $18.2 million for the years ended December 31, 2018, 2017, and 2016, respectively. Capitalized real estate taxes were approximately $2.2 million, $2.4 million, and $4.5 million for the years ended December 31, 2018, 2017, and 2016, respectively.

Where possible, we stage our construction to allow leasing and occupancy during the construction period, which we believe minimizes the duration of the lease-up period following completion of construction. Our accounting policy related to properties in the development and leasing phase is to expense all operating expenses associated with completed apartment homes. We capitalize renovation and improvement costs we believe extend the economic lives of depreciable property. Capital expenditures subsequent to initial construction are capitalized and depreciated over their estimated useful lives.

We also incur expenditures related to renovation and construction of office space we lease and we capitalize these leasehold improvements as furniture, fixtures, equipment and other. We depreciate these costs using the straight-line method over the shorter of the lease term or the useful life of the improvement.

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 below market leases)	underlying lease term

Derivative Financial Instruments. Derivative financial instruments are recorded in the consolidated balance sheets at fair value and we do not apply master netting for financial reporting purposes. Accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting, and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows or other types of forecasted transactions are cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes attributable to the earnings effect of the hedged

transactions. We may enter into derivative contracts which are intended to economically hedge certain of our risks, for which hedge accounting does not apply or we elect not to apply hedge accounting.

Discontinued Operations. A property is classified as a discontinued operation when the disposal represents a strategic shift, such as disposal of a major line of business, a major geographical area or a major equity investment. The results of operations for properties sold during the period or classified as held for sale at the end of the period, and meeting the above criteria of discontinued operations, are classified as discontinued operations for all periods presented. The property-specific components of earnings classified as discontinued operations include separately identifiable property-specific revenues, expenses, depreciation, and interest expense, if any. The gain or loss resulting from the eventual disposal of the held for sale properties meeting the criteria of discontinued operations is also classified within discontinued operations. Real estate assets held for sale are measured at the lower of carrying amount or fair value less costs to sell and are presented separately in the accompanying consolidated balance sheets. Subsequent to classification of a property as held for sale, no further depreciation is recorded. Consolidated operating properties sold or classified as held for sale, which do not meet the above criteria of discontinued operations are not included in discontinued operations and the related gains and losses are included in continuing operations. Properties sold by our unconsolidated entities which do not meet the above criteria of discontinued operations are not included in discontinued operations and related gains or losses are reported as a component of equity in income of joint ventures.

Gains on sale of real estate are recognized using the full accrual or partial sale methods, as applicable, in accordance with accounting principles generally accepted in the United States of America ("GAAP"), provided various criteria relating to the terms of sale and any subsequent involvement with the real estate sold are satisfied.

See Note 8, "Acquisitions, Dispositions, and Discontinued Operations," for discussion of discontinued operations for the year ended December 31, 2016. There were no discontinued operations for the years ended 2018 or 2017.

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 receive to sell an asset, or pay to transfer a liability, in an orderly transaction with a market participant at the measurement date. 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 are recorded in other assets in our 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.

Derivative Financial Instruments. The estimated fair values of derivative financial instruments are valued using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and volatility. The fair values of interest rate swaps and caps are estimated using the market-standard methodology of netting the discounted fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of interest rates (forward curves) derived from observable market interest rate curves. In addition, credit valuation adjustments, which consider the impact of any credit enhancements to the contracts, are incorporated in the fair values to account for potential nonperformance risk, including our own nonperformance risk and the respective counterparty’s nonperformance risk. The fair value of interest rate caps is determined using the market-standard methodology of discounting the future expected cash receipts which would occur if variable interest rates rise above the strike rate of the caps. The variable interest rates used in the calculation of projected receipts on the cap are based on an expectation of future interest rates derived from observed market interest rate curves and volatilities.

Although we have determined the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit

spreads, to evaluate the likelihood of default. However, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined our derivative valuations in their entirety are classified in Level 2 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. Long-lived assets such as the land, real estate asset, and in-place leases acquired with an operating property are measured in the form of cash received unless otherwise noted. These assets are recorded at fair value if they are impaired using the fair value methodologies used to measure long-lived assets described above at "Asset Impairment." Non-recurring fair value disclosures are not provided for impairments on assets disposed during the period because they are no longer owned by us. 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 December 31, 2018 and 2017, the carrying values of cash and cash equivalents, short-term investments, accounts receivable, accounts payable, accrued expenses and distributions payable represent 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. The carrying value of our notes receivable, which are included in other assets, net in our consolidated balance sheets, approximates their fair value. The estimated fair values are based on certain factors, such as market interest rates, terms of the note and credit worthiness of the borrower. These financial instruments utilize Level 3 inputs. 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. Our rental revenue is recognized on a straight-line basis and other property revenue is recorded when due from residents and is recognized as it is earned. Other property revenue consists primarily of utility rebillings and administrative, application, and other transactional fees charged to our residents. Our apartment homes are rented to residents on lease terms generally ranging from twelve to fifteen months, with monthly payments due in advance. All other sources of income, including interest and fee and asset management income, are recognized as earned. See Note 3, "Revenues," for further discussion. Operations of multifamily properties acquired are recorded from the date of acquisition in accordance with the acquisition method of accounting. In management’s opinion, due to the number of residents, the types and diversity of submarkets in which our properties operate, and the collection terms, there is no significant concentration of credit risk.

Reclassifications. Certain reclassifications have been made to amounts in prior period financial statements to conform to the current period presentation. As of December 31, 2018, we reclassified certain insignificant amounts within investing activities which had no impact on our consolidated statements of cash flows for the years ended December 31, 2017 and 2016.

Insurance. Our primary lines of insurance coverage are property, general liability, health, and workers’ compensation. We believe our insurance coverage adequately insures our properties against the risk of loss attributable to fire, earthquake, hurricane, tornado, flood, and other perils and adequately insures us against other risks. Losses are accrued based upon our estimates of the aggregate liability for claims incurred using certain actuarial assumptions followed in the insurance industry and based on our experience.

Other Assets, Net. Other assets in our consolidated financial statements include investments under deferred compensation plans, deferred financing costs, non-real estate leasehold improvements and equipment, notes receivable, prepaid expenses, and other miscellaneous receivables. Investments under deferred compensation plans are classified as trading securities and are adjusted to fair market value at period end. For a further discussion of our investments under deferred compensation plans, see Note 12, “Share-based Compensation and Benefit Plans.” Deferred financing costs are related to our unsecured credit facility and unsecured short-term borrowing facility, and are amortized no longer than the terms of the related facilities on the straight-line method, which approximates the effective interest method. Corporate leasehold improvements and equipment are depreciated using the straight-line method over the shorter of the expected useful lives or the lease terms which generally range from three to ten years.

Notes Receivable. We have one note receivable included in Other assets, net in our consolidated balance sheets, relating to a real estate secured loan to an unaffiliated third party. During 2018, we received payments of approximately $9.5 million in principal and approximately $0.5 million in interest on this note which matures on October 1, 2025. At December 31, 2018 and 2017, the outstanding note receivable balance was approximately $9.3 million and $18.8 million, respectively, and the weighted average interest rate was approximately 4.0% for each of the years ended December 31, 2018 and 2017. Interest is recognized over the life of the note and is included in interest and other income in our consolidated statements of income and comprehensive income. We consider a note receivable to be impaired if it is probable we will not collect all contractually due principal and interest, and we do not accrue interest when a note is considered impaired and an allowance is recorded for any principal and previously accrued interest which is not believed to be collectible. All cash receipts on impaired notes are applied to reduce the principal amount of such notes until the principal has been recovered and, thereafter, are recognized as interest income. There were no impairments a

s of December 31, 2018 or 2017.

Reportable Segments. We operate in a single reportable segment which includes the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Each of our operating properties is considered a separate operating segment as each property earns revenues and incurs expenses, individual operating results are reviewed and discrete financial information is available. We do not distinguish or group our consolidated operations based on geography, size or type. Our multifamily apartment communities have similar long-term economic characteristics and provide similar products and services to our residents. Further, all material operations are within the United States and no multifamily apartment community comprises more than 10% of consolidated revenues. As a result, our operating properties are aggregated into a single reportable segment. Our multifamily communities generate rental revenue and other income through the leasing of apartment homes, which comprised approximately 99% of our total property revenues and total non-property income, excluding income on deferred compensation plans, for each of the years ended December 31, 2018, 2017, and 2016.

Restricted Cash. Restricted cash consists of escrow deposits held by lenders for property taxes, insurance and replacement reserves, cash required to be segregated for the repayment of residents’ security deposits, and escrowed amounts related to our development and acquisition activities. Substantially all restricted cash is invested in demand and short-term instruments.

Share-based Compensation. Compensation expense associated with share-based awards is recognized in our consolidated statements of income and comprehensive income using the grant-date fair values. Compensation cost for all share-based awards, including options, requires measurement at estimated fair value on the grant date and recognition of compensation expense over the requisite service period for awards expected to vest. The fair value of stock option grants is estimated using the Black-Scholes valuation model. Valuation models require the input of assumptions, including judgments to estimate the expected stock price volatility, expected life, and forfeiture rate. The compensation cost for share-based awards is based on the market value of the shares on the date of grant and is adjusted as actual forfeitures occur.

Use of Estimates. In the application of GAAP, management is required to make estimates and assumptions which affect the reported amounts of assets and liabilities at the date of the financial statements, results of operations during the reporting periods, and related disclosures. Our more significant estimates include estimates supporting our impairment analysis related to the carrying values of our real estate assets. These estimates are based on historical experience and other assumptions believed to be reasonable under the circumstances. Future events rarely develop exactly as forecasted, and the best estimates routinely require adjustment.

Recent Accounting Pronouncements. In October 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2018-16 ("ASU 2018-16"), "Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes." ASU 2018-16 permits the use of the overnight index swap rate based on the Secured Overnight Financing Rate to be used as a U.S. benchmark interest rate for hedge accounting purposes. ASU 2018-16 is effective for public entities which have already adopted ASU 2017-12 beginning after December 31, 2018. Since we already adopted ASU 2017-12, we adopted ASU 2018-16 as of January 1, 2019 with no impact on our existing hedges. We will consider these changes for qualifying new or redesignated hedging relationships entered into in the future.

In August 2018, the FASB issued ASU 2018-15 "Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." ASU 2018-15 clarifies certain implementation costs relating to a cloud computing arrangement which is considered to be a service contract should be capitalized as if the arrangement was an internal-use software project. The standard also requires costs associated with an implementation to be classified where the fees are recorded in financial statements for such arrangements. ASU 2018-15 is effective for interim and annual periods beginning after December 15, 2019, and early adoption is permitted. This standard may be applied using the prospective transition method which is applicable to service contracts entered, renewed, or materially modified after the effective date or the retrospective transition method which allows us to recognize a cumulative effect adjustment to the opening balance of retained earnings, if any, as of the adoption date. We anticipate adopting ASU 2018-15 as of January 1, 2020, using the retrospective transition method and we do not expect our adoption to have a material impact on our consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13 "Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement." ASU 2018-13 removes, modifies, and adds certain fair value disclosure requirements including (i) the removal of disclosures regarding amounts, reasons, and timing for transfers between Levels 1 and 2 as well as descriptions of valuation processes used for Level 3 measurements of the fair value hierarchy; (ii) the modification of disclosures for the timing of liquidation of investee assets; (iii) the clarification of the narrative description of the measurement uncertainty of Level 3 fair value measurements at the reporting date does not need to include sensitivity of future changes; (iv) the addition of disclosures related to changes in unrealized gains and losses in other comprehensive income for recurring Level 3 fair value measurements to also be included in the statement of comprehensive income; and (v) the addition of disclosures for the

range and weighted average of significant unobservable inputs. ASU 2018-13 is effective January 1, 2020 for the additional disclosures and early adoption of the removal and amended disclosures is allowed. We expect to adopt ASU 2018-13 as of January 1, 2020 and do not expect the adoption to have a material impact on our consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09 "Revenue from Contracts with Customers." ASU 2014-09 prescribes a single, common revenue standard to replace most existing revenue recognition guidance in GAAP, including most industry-specific requirements. The standard outlines a five-step model whereby revenue is recognized as performance obligations within a contract are satisfied. Several ASUs intended to promote a more consistent interpretation and application of the principles outlined in the standard have been issued since the issuance of ASU 2014-09 which modify certain sections of the new revenue recognition standard. We adopted ASU 2014-09 and all related amendments effective January 1, 2018 using the modified retrospective with cumulative effect transition method. This method requires us to recognize the cumulative effect of initially applying the new revenue standard as an adjustment, if any, to the opening balance of retained earnings, which had no impact on our consolidated financial statements upon adoption. See Note 3, "Revenues," for additional disclosures required by the ASU.

In February 2016, the FASB issued ASU 2016-02, "Leases." ASU 2016-02 supersedes the current accounting for leases. The new lease standard retains three distinct types of leases which are similar to existing guidance for lessors: operating, sales-type, and financing, and aligns many of the underlying lessor model principles with those in the new revenue standard. For lessees, the new lease standard retains two distinct types of leases, finance and operating; and (i) requires lessees to record a right of use asset and a related liability for the rights and obligations associated with a lease, regardless of lease classification, and recognize lease expense in a manner similar to current accounting and (ii) eliminates most real estate specific lease provisions. We adopted ASU 2016-02 and its related amendments as of January 1, 2019 using the transition practical expedient which allows us to recognize a cumulative-effect adjustment to the opening balance of retained earnings as of the adoption date as well as other elected practical expedients. We have identified our lease commitments and finalized our evaluation on our consolidated financial statements and on our internal accounting processes. Substantially all of our real estate lessor commitments will continue to be accounted for as operating leases and the new leasing standard will not have a material impact on rental revenues. Our lessee operating lease commitments are subject to the standard and recognized as operating lease liabilities and right-of-use assets upon adoption. Our adoption of the new leasing standard will not have a material impact on our consolidated financial statements. Upon our adoption of ASU 2016-02 as of January 1, 2019, we will increase lease liabilities by approximately $16.6 million along with a corresponding right-of-use assets on our consolidated balance sheet, and this ASU will not have any impact on our consolidated statement of income upon adoption.

3. Revenue

On January 1, 2018, we adopted ASU 2014-09 and all related amendments in accordance with ASU 2014-09 and elected to apply the new revenue standard to those contracts which were not completed as of January 1, 2018. We also elected to omit disclosing the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the invoiced amount directly corresponds to the value transferred to the customer as provided for in the practical expedients. Our adoption of ASU 2014-09 and its related amendments did not have a material impact upon our consolidated financial statements as the majority of our revenues are derived from real estate lease contracts which are scoped out of ASU 2014-09.

Our presentation of revenue within our condensed consolidated statements of income and comprehensive income is separated into its component parts by the nature and timing of the revenue streams. Our revenue within the scope of this new revenue standard is recognized when the services are transferred to our customers for an amount which reflects the consideration we expect to receive in exchange for those services rendered and include the following:

Other Property Revenues. The items within other property revenues relate to non-lease components within a lease contract and primarily consist of utility rebillings which are usually recognized over time and other transactional fees primarily recognized at a point-in-time. These fees are charged to our residents and recognized monthly as the performance obligation is satisfied.

Upon our adoption of ASU 2014-09, we are now presenting certain revenue items, historically included as a component of other property revenues, as rental revenues due to the nature and timing of revenue recognition for these items being more closely aligned to a lease. This new presentation has been applied prospectively as this reclassification will not have an impact upon total property revenues or the opening balance of retained earnings. Approximately $22.2 million of rental revenue is related to this presentation for the year ended December 31, 2018. Had ASU 2014-09 been effective as of January 1, 2017, we would have reclassified approximately $21.9 million from other property revenues to rental revenue for the year ended December 31, 2017.

Fee and Asset Management Income. Management fee income primarily consists of fees charged to our unconsolidated joint ventures for managing the joint venture, and the development, redevelopment and capital expenditures of their operating communities. While the individual activities related to these fees may vary, the services provided are substantially similar, have the same pattern of transfer, and are considered to be individual performance obligations composed of a series of distinct services, recognized monthly as earned.

We also generate construction fees for construction management and general contracting services provided to third-party owners of multifamily, commercial, and retail properties. These fees are recognized as we satisfy our single performance obligation over time based on a percentage-of-completion of cost basis which we believe is an accurate depiction of the transfer of control to our customers. For these contracts, significant judgment is used to estimate the cost plus margin for the project fee and our profitability on those contracts is dependent on the ability to accurately predict such factors.

Contract Balances. We record third-party construction receivables for amounts where we have unconditional rights to payment but have not received and liabilities for amounts incurred but not paid. For the years ended December 31, 2018 and 2017, these contract receivable and liability balances were immaterial.

4. Per Share Data

Basic earnings per share are computed using net income attributable to common shareholders and the weighted average number of common shares outstanding. Diluted earnings per share reflect common shares issuable from the assumed conversion of common share options and share awards granted and 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. The number of common share equivalent securities excluded from the diluted earnings per share calculation was approximately 2.1 million, 1.5 million, and 2.4 million for the years ended December 31, 2018, 2017, and 2016, respectively. These securities, which include common share options and share awards granted and units convertible into common shares, were excluded from the diluted earnings per share calculation as they are anti-dilutive.

The following table presents information necessary to calculate basic and diluted earnings per share for the periods indicated:

		Year Ended December 31,
(in thousands, except per share amounts)		2018				2017				2016
Earnings per common share calculation – basic
Income from continuing operations attributable to common shareholders		$	156,128			$	196,422			$	436,981
Amount allocated to participating securities		(1,107		)		(660		)		(6,304		)
Income from continuing operations attributable to common shareholders, net of amount allocated to participating securities		$	155,021			$	195,762			$	430,677
Discontinued operations, including gain on sale, attributable to common shareholders		—				—				382,842
Net income attributable to common shareholders – basic		$	155,021			$	195,762			$	813,519
Earnings per common share from continuing operations		$	1.63			$	2.14			$	4.81
Earnings per common share from discontinued operations		—				—				4.27
Total earnings per common share – basic		$	1.63			$	2.14			$	9.08
Weighted average number of common shares outstanding – basic		95,208				91,499				89,580

		Year Ended December 31,
(in thousands, except per share amounts)		2018				2017				2016
Earnings per common share calculation – diluted
Income from continuing operations attributable to common shareholders, net of amount allocated to participating securities		$	155,021			$	195,762			$	430,677
Income allocated to common units from continuing operations		—				1,174				—
Income from continuing operations attributable to common shareholders, as adjusted		$	155,021			$	196,936			$	430,677
Discontinued operations, including gain on sale, attributable to common shareholders		—				—				382,842
Net income attributable to common shareholders – diluted		$	155,021			$	196,936			$	813,519
Earnings per common share from continuing operations		$	1.63			$	2.13			$	4.79
Earnings per common share from discontinued operations		—				—				4.26
Total earnings per common share – diluted		$	1.63			$	2.13			$	9.05
Weighted average number of common shares outstanding – basic		95,208				91,499				89,580
Incremental shares issuable from assumed conversion of:
Common share options and share awards granted		158				211				323
Common units		—				805				—
Weighted average number of common shares outstanding – diluted		95,366				92,515				89,903

5. Common Shares

In May 2017, we created an at-the market ("ATM") share offering program through which we can, but have no obligation to, sell common shares having an aggregate offering price of up to $315.3 million (the "2017 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 2017 ATM program are intended to be used for general corporate purposes, which may include reducing future borrowings under our unsecured line of credit or short-term borrowing facilities, the repayment of other indebtedness, the redemption or other repurchase of outstanding debt or equity securities, funding for development activities, and financing for acquisitions.

For the year ended December 31, 2018, we did not sell any shares under the 2017 ATM program. The following table presents activity under the 2017 ATM program for the year ended December 31, 2017:

(in thousands, except per share amounts)	Year Ended December 31, 2017
Total net consideration	$	2,513.6
Common shares sold	28.1
Average price per share	$	90.44

As of the date of this filing, we had common shares having an aggregate offering price of up to $312.8 million remaining available for sale under the 2017 ATM program. No additional shares were sold under the 2017 ATM program subsequent to December 31, 2018 through the date of this filing.

We have a repurchase plan approved by our Board of Trust Managers which allows for the repurchase of up to $500 million of our common equity securities through open market purchases, block purchases, and privately negotiated transactions. In 2018, we repurchased 3,222 common shares for approximately $0.3 million. As of the date of this filing, the remaining dollar value of our common equity securities authorized to be repurchased under the program was approximately $269.5 million. There were no repurchases for the years ended December 31, 2017 or 2016 under this program, or subsequent to December 31, 2018 through the date of this filing.

We currently have an automatic shelf registration statement which allows us to offer, from time to time, common shares, preferred shares, debt securities, or warrants. 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 December 31,

2018, we had approximately 93.2 million common shares outstanding, net of treasury shares and shares held in our deferred compensation arrangements, and no preferred shares outstanding.

In addition to our 2016 quarterly dividends, our Board of Trust Managers declared a special dividend of $4.25 per common share to our common shareholders of record as of September 23, 2016, consisting of gains on dispositions of assets completed in 2016, which was paid on September 30, 2016. We also paid equivalent amounts per unit to holders of the common operating partnership units.

6. Operating Partnerships

At December 31, 2018, approximately 4% of our consolidated multifamily apartment homes were held in Camden Operating, L.P. (“Camden Operating” or the “operating partnership”). Camden Operating has 11.9 million outstanding common limited partnership units and as of December 31, 2018, we held approximately 92% of the outstanding common limited partnership units and the sole 1% general partnership interest of the operating partnership. The remaining common limited partnership units, comprising approximately 0.8 million units, are primarily held by former officers, directors, and investors of Paragon Group, Inc., which we acquired in 1997. Each common limited partnership unit is redeemable for one common share of Camden Property Trust or cash at our election. Holders of common limited partnership units are not entitled to rights as shareholders prior to redemption of their common limited partnership units. No member of our management owns Camden Operating common limited partnership units.

At December 31, 2018, approximately 33% of our consolidated multifamily apartment homes were held in Camden Summit Partnership, L.P. (the “Camden Summit Partnership”). Camden Summit Partnership has 22.8 million outstanding common limited partnership units and as of December 31, 2018, we held approximately 95% of the outstanding common limited partnership units and the sole 1% general partnership interest of Camden Summit Partnership. The remaining common limited partnership units, comprising approximately 1.0 million units, are primarily held by former officers, directors, and investors of Summit Properties Inc., which we acquired in 2005. Each common limited partnership unit is redeemable for one common share of Camden Property Trust or cash at our election and holders of common limited partnership units are not entitled to rights as shareholders prior to redemption of their common limited partnership units. No member of our management owns Camden Summit Partnership common limited partnership units, and two of our ten trust managers own Camden Summit Partnership common limited partnership units.

During 2018, we entered into an agreement with certain holders of common units of limited partnership interest in the Camden Summit Partnership, which holders included two of our Trust Managers. This agreement modifies the original terms of the Tax Protection Agreement dated February 28, 2005 which states the Camden Summit Partnership must maintain a certain amount of secured debt until February 28, 2020 to protect the negative tax capital of the unitholders or reimburse the unitholders for income taxes incurred from the repayment of this indebtedness. Pursuant to this 2018 agreement, Camden Summit Partnership issued $100.0 million of unsecured debt with an unrelated third party which was guaranteed by Camden Property Trust. Additionally, each such unitholder agreed to indemnify Camden Property Trust for their portion of the unsecured debt equal to the amount of income and gain which would be required to be recognized by the unitholder due to their negative tax capital account; the indemnities are for a one-year period with an annual October 15 renewal right. These amounts were approximately $21.2 million in the aggregate for the two Trust Managers which are holders of common units of limited partner interest in Camden Summit Partnership. In return, Camden Summit Partnership agreed to extend the duration of the Tax Protection Agreement for two years for each year such unitholder's indemnification agreement remains in place.

7. 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 will be subject to federal and state income taxes at regular corporate rates, including for taxable years ended before January 1, 2019 any applicable alternative minimum tax. In addition, we may not be able to requalify as a REIT for the four subsequent taxable years. 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 operating partnerships are flow-through entities and are not subject to federal income taxes at the entity level.

We have recorded income, franchise, and excise taxes in the consolidated statements of income and comprehensive income for the years ended December 31, 2018, 2017 and 2016 as income tax expense. Income taxes for the years ended December 31,

2018, 2017 and 2016, primarily related to state income tax and federal taxes on certain of our taxable REIT subsidiaries. We have no significant temporary or permanent differences or tax credits associated with our taxable REIT subsidiaries.

For income tax purposes, distributions to common shareholders are characterized as ordinary income, capital gains or as a return of a shareholder's invested capital. A summary of the income tax characterization of our distributions paid per common share for the years ended December 31, 2018, 2017 and 2016 is set forth in the following table:

		Year Ended December 31,
		2018				2017				2016
Common Share Distributions
Ordinary income		$	2.99			$	2.38			$	—
Long-term capital gain		0.09				0.41				5.02
Unrecaptured Sec. 1250 gain		—				0.21				2.23
Total		$	3.08			$	3.00			$	7.25

We have taxable REIT subsidiaries which are subject to federal and state income taxes. At December 31, 2018, our taxable REIT subsidiaries had immaterial net operating loss carryforwards (“NOL’s”) which expire in years 2034 to 2037 and no benefits related to these NOL’s have been recognized in our consolidated financial statements.

The carrying value of net assets reported in our consolidated financial statements at December 31, 2018 exceeded the tax basis by approximately $1.3 billion.

Income Tax Expense. For the tax year ended December 31, 2018, we had income tax expense of approximately $1.4 million, and $1.2 million and $1.6 million for the tax years ended December 31, 2017 and 2016, respectively. Income tax for the years ended December 31, 2018, 2017, and 2016 was comprised mainly of state income tax and federal income tax related to one of our taxable REIT subsidiaries.

Income Tax Expense – Deferred. For the years ended December 31, 2018, 2017, and 2016, our deferred tax expense was not significant.

The income tax returns of Camden Property Trust and its subsidiaries are subject to examination by federal, state and local tax jurisdictions for years 2015 through 2017. Tax attributes generated in years prior to 2015 are also subject to challenge in any examination of those tax years. We believe we have no uncertain tax positions or unrecognized tax benefits requiring disclosure as of and for the periods presented.

Tax reform. The 2017 Tax Act was passed on December 22, 2017 which includes a number of changes to the corporate income tax system, including but not limited to a reduction in the statutory federal corporate income tax rate from 35% to 21% for non-REIT “C” corporations, changes to deductions for certain pass-through business income, and possible limitations on interest expense, depreciation and the deductibility of executive compensation. As a REIT, we generally will not be subject to federal income tax on our taxable income at the corporate level and the changes from the 2017 Tax Act did not have a material impact on our consolidated financial statements.

8. Acquisitions, Dispositions, and Discontinued Operations

Asset Acquisition of Operating Properties. In September 2018, we acquired one operating property comprised of 299 apartment homes located in Orlando, Florida, for approximately $89.8 million. In February 2018, we acquired one operating property comprised of 333 apartment homes located in Orlando, Florida, for approximately $81.4 million. In January 2018, we acquired one operating property comprised of 358 apartment homes located in St. Petersburg, Florida, for approximately $126.9 million. In June 2017, we acquired one operating property comprised of 250 apartment homes, located in Atlanta, Georgia, for approximately $58.3 million. There were no asset acquisitions of operating properties for the year ended December 31, 2016.

Acquisitions of Land. In April 2018, we acquired approximately 1.8 acres of land in Orlando, Florida for approximately $11.4 million for the development of a community with 360 wholly-owned apartment homes which started construction during the quarter ended June 30, 2018. During the year ended December 31, 2017, we acquired approximately 8.2 acres of land in San Diego, California for approximately $20.0 million. During the year ended December 31, 2016, we acquired an aggregate of approximately 4.6 acres of land located in Denver, Colorado and Charlotte, North Carolina for approximately $19.9 million.

Land Holding Dispositions. In September 2018, we sold approximately 14.1 acres of land adjacent to two development properties in Phoenix, Arizona for approximately $11.5 million. During the year ended December 31, 2017, we did not sell any land. During the year ended December 31, 2016, we sold approximately 6.3 acres of land adjacent to an operating property in Tampa, Florida for approximately $2.2 million and recognized a gain of approximately $0.4 million.

Sale of Operating Properties. We did not sell any operating properties during the year ended December 31, 2018. During the year ended December 31, 2017, we sold one operating property, comprised of 1,005 apartment homes, located in Corpus Christi, Texas for approximately $78.4 million and recognized a gain of approximately $43.2 million.

During the year ended December 31, 2016, we sold one dual-phased property and six other operating properties comprised of an aggregate of 3,184 apartment homes with an average age of 24 years, located in Landover and Frederick, Maryland; Fullerton, California; and Tampa, Altamonte Springs, and St. Petersburg, Florida for an aggregate of approximately $523.4 million, and recognized a gain of approximately $294.9 million.

Discontinued Operations. During the years ended December 31, 2018 and 2017, we did not have any discontinued operations. During the year ended December 31, 2016, we had discontinued operations related to the sale in April 2016 of 15 operating properties, comprised of an aggregate of 4,918 apartment homes, with an average age of 23 years, a retail center and approximately 19.6 acres of land, all located in Las Vegas, Nevada, to an unaffiliated third party for an aggregate of approximately $630.0 million and recognized a gain of approximately $375.2 million, net of closing costs.

The following is a summary of income from discontinued operations for the year ended December 31, 2016 relating to the 15 operating properties and the retail center sold in April 2016:

		Year Ended December 31,
(in thousands)		2016
Property revenues		$	19,184
Property expenses		(6,898		)
		$	12,286
Property management expense		(242		)
Depreciation and amortization		(4,327		)
Income tax expense		(112		)
Income from discontinued operations		$	7,605
Gain on sale of discontinued operations, net of tax		$	375,237

9. Investments in Joint Ventures

Our equity investments in unconsolidated joint ventures, which we account for utilizing the equity method of accounting, consists of three funds (collectively, the "Funds"). At December 31, 2018, 2017, and 2016, we had two discretionary investment funds in which we had an ownership interest of 31.3% in each of these funds. In March 2015, we completed the formation of a third fund with an unaffiliated third party for additional multifamily investments of up to $450.0 million. We have a 20.0% ownership interest in this third fund, and it did not own any properties in 2018, 2017, or 2016. We provide property and asset management and other services to the Funds which own operating properties and we may also provide construction and development services to the Funds which own properties under development. The following table summarizes the combined balance sheet and statement of income data for the Funds as of and for the periods presented:

(in millions)	2018				2017
Total assets	$	695.2			$	715.9
Total third-party debt	510.7				514.5
Total equity	158.4				174.5

	2018				2017				2016
Total revenues	$	127.4			$	121.9			$	119.8
Net income (1)	16.4				13.5				14.8
Equity in income (2) (3)	7.8				6.8				7.1

(1)	Net income for the years ended December 31, 2017 includes approximately $1.3 million of property expense, respectively, relating to Hurricanes Harvey and Irma in the third quarter of 2017.

(2)	Equity in income excludes our ownership interest of fee income from various services provided by us to the Funds.

(3)	Equity in income for the years ended December 31, 2017 includes our ownership interest of the hurricane related recoveries and expenses of approximately $0.4 million, respectively.

The Funds in which we have a partial interest have been funded in part with secured third-party debt. As of December 31, 2018, we had no outstanding guarantees related to debt of the Funds.

We may earn fees for property and asset management, construction, development, and other services related to joint ventures in which we own an equity interest and may earn a promoted equity interest if certain thresholds are met. We eliminate fee income for services provided to these joint ventures to the extent of our ownership. Fees earned for these services, net of eliminations, were approximately $5.7 million, $5.8 million, and $5.3 million for the years ended December 31, 2018, 2017, and 2016, respectively.

10. Notes Payable

The following is a summary of our indebtedness:

		December 31,
(in millions)		2018				2017
Commercial banks
Term loan, due 2022		$	99.6			$	—
Senior unsecured notes (1)
4.78% Notes, due 2021		$	249.1			$	248.7
3.15% Notes, due 2022		347.3				346.6
5.07% Notes, due 2023		248.0				247.6
4.36% Notes, due 2024		248.7				248.5
3.68% Notes, due 2024		247.6				247.2
3.74% Notes, due 2028		396.1				—
		$	1,736.8			$	1,338.6
Total unsecured notes payable		$	1,836.4			$	1,338.6
Secured notes (1)
4.38% – 5.33% Conventional Mortgage Notes, due 2019 – 2045		485.2				866.0
Total notes payable		$	2,321.6			$	2,204.6
Floating rate debt included in unsecured notes (3.34%)		$	99.6			$	—
Floating rate debt included in secured notes (1.92%)		$	—			$	175.0
Value of real estate assets, at cost, subject to secured notes		$	867.9			$	1,534.9

(1)	Unamortized debt discounts and debt issuance costs of $13.9 million and $12.3 million are included in senior unsecured and secured notes payable as of December 31, 2018 and 2017, respectively.

In August 2015, we amended and restated our $500 million unsecured credit facility, which extended the maturity date from September 2015 to August 2019, with two six-month options to extend the maturity date at our election to August 2020, and increased the availability to $600 million, with the option to further increase it to $900 million by either adding additional banks to the facility or obtaining the agreement of the existing banks to increase their commitments. The interest rate on this credit facility is based upon the London Interbank Offered Rate ("LIBOR") plus a margin which is subject to change as our credit ratings change. Advances under this 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 $300 million or the remaining amount available under the credit facility. This credit facility is subject to customary financial covenants and limitations. We believe we are in compliance with all such financial covenants and limitations on the date of this filing.

Our 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 credit facility, it does reduce the amount available. At December 31, 2018, we had no amounts outstanding on our $600 million credit facility and we had outstanding letters of credit totaling approximately $10.1 million, leaving approximately $589.9 million available under our credit facility.

In May 2018, we extended the term on our $45.0 million unsecured short-term borrowing facility from May 2018 to May 2019. The interest rate is based on LIBOR plus 0.95%. At December 31, 2018, we had no amounts outstanding on this unsecured short-term borrowing facility, leaving $45.0 million available under this facility.

In September 2018, we entered into a $100.0 million three-year unsecured floating-rate term loan with an unrelated third party, which was funded in October 2018. The interest rate on the term loan is based on LIBOR plus a margin which is subject to change as our credit ratings change. See Note 6, "Operating Partnerships" for a further discussion of this transaction.

In October 2018, we repaid at maturity our $175.0 million variable rate secured conventional mortgage notes and $205.0 million of outstanding fixed rate secured conventional mortgage notes which were scheduled to mature in 2018 from our unsecured line of credit, other short-term borrowings, and the $100.0 million term loan discussed above.

Also in October 2018, we issued $400.0 million aggregate principal amount of 4.100% senior unsecured notes due October 15, 2028 (the "2028 Notes") under our existing shelf registration statement. The 2028 Notes were offered to the public at 99.893% of their face amount with a stated rate of 4.100% and a yield to maturity of 4.113%. After giving effect to the settlement of the swap agreements as discussed below in Note 11, "Derivative Financial Instruments and Hedging Activities," and deducting the underwriting discounts and other estimated expenses of the offering, the effective annual interest rate on the 2028 Notes is approximately 3.74%. We received net proceeds of approximately $396.1 million, net of underwriting discounts and other estimated offering expenses. Interest on the 2028 Notes is payable semi-annually on April 15 and October 15, beginning April 15, 2019. We may redeem the 2028 Notes, in whole or in part, at any time at a redemption price equal to the principal amount and accrued interest of the notes being redeemed, plus a make-whole provision. If, however, we redeem the 2028 Notes 90 days or fewer prior to the maturity date, the redemption price will equal 100% of the principal amount of the 2028 Notes to be redeemed plus accrued and unpaid interest on the amount being redeemed to the redemption date. The 2028 Notes are direct, senior unsecured obligations and rank equally with all of our other unsecured and unsubordinated indebtedness. We used the proceeds from the offering of the 2028 Notes to repay outstanding balances on our unsecured line of credit and other short-term borrowings (including amounts incurred to repay the $380.0 million secured unconventional mortgage notes) and the remainder for general corporate purposes.

At December 31, 2018, we had $99.6 million outstanding floating rate debt with a weight average interest rate on this debt of approximately 3.3%. At December 31, 2017, we had outstanding floating rate debt of approximately $175.0 million with a weighted average interest rate on this debt of approximately 1.9%.

Our indebtedness had a weighted average maturity of 4.9 years at December 31, 2018. 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 December 31, 2018:

(in millions)		Amount				Weighted Average Interest Rate
2019		$	437.3			5.2	%
2020 (1)		(1.9		)		—
2021		248.5				4.8
2022		448.8				3.2
2023		249.8				5.1
Thereafter		939.1				3.9
Total		$	2,321.6			4.2	%

(1)	Includes only amortization of debt discounts and debt issuance costs, net of scheduled principal payments.

Subsequent to December 31, 2018, we repaid $200.0 million of secured notes utilizing our unsecured credit facility.

11. 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 principally manage our exposures to a wide variety of business and operational risks through management of our core business activities. 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 principally related to our borrowings. See Note 2, "Summary of Significant Accounting Policies and Recent Accounting Pronouncements" for a further discussion of derivative financial instruments.

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 primarily use interest rate swaps and

caps 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. Interest rate caps involve the receipt of variable rate amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an upfront premium. Our interest rate swaps and caps hedge interest expense and net proceeds from the settlement of such hedges will be classified as operating activities in the consolidated statement of cash flows.

Designated Hedges. The gain or loss on the 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 presented in the same line item as the earnings effect of the hedged item. During 2018, we entered into four designated hedges with a total notional value of $500.0 million to hedge a portion of anticipated future fixed rate debt issuances in 2018 and 2019. At December 31, 2018, we had a total of two designated hedges outstanding with a total notional value of $300.0 million to hedge a portion of anticipated future fixed rate debt issuances in 2019. At December 31, 2017, we had a total of three designated hedges outstanding with a total notional value of $200.0 million to hedge a portion of anticipated future fixed rate debt issuances in 2018.

In connection with the issuance of our 2028 Notes, we settled an aggregate of $400.0 million forward interest rate swap designated hedges resulting in a cash receipt of approximately $15.9 million which was recorded in accumulated other comprehensive income on our consolidated balance sheets and will be recognized over the life of the issued debt as an adjustment to interest expense.

Non-Designated Hedges. Derivatives are not entered into for trading or speculative purposes and are used to manage our exposure to interest rate movements and other identified risks. Our non-designated hedges are either specifically non-designated by management or do not meet strict hedge accounting requirements. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings in interest and other income. At December 31, 2018 and 2017, we did not have any non-designated hedges outstanding.

The table below presents the fair value of our derivative financial instruments as well as their classification in the consolidated balance sheets at December 31, 2018 and 2017:

	Asset Derivatives												Liability Derivatives
	December 31, 2018 (1)						December 31, 2017						December 31, 2018 (1)						December 31, 2017
(in millions)	Balance Sheet Location		Fair Value				Balance Sheet Location		Fair Value				Balance Sheet Location		Fair Value				Balance Sheet Location		Fair Value
Derivatives designated as hedging instruments
Interest Rate Swaps	Other Assets		$	—			Other Assets		$	2.2			Other Liabilities		$	7.4			Other Liabilities		$	0.5

(1)	The derivatives subject to master netting arrangements are presented on a gross basis on our condensed consolidated balance sheet as of December 31, 2018. There were no derivative contracts in a master netting arrangement as of December 31, 2018 and 2017.

The table below presents the effect of our derivative financial instruments in the consolidated statements of income and comprehensive income for the year ended December 31, 2018 and 2017:

(in millions)		Unrealized Gain Recognized in Other Comprehensive Income (“OCI”) on Derivatives								Location of Gain Reclassified from Accumulated OCI into Income		Amount of Gain Reclassified from Accumulated OCI into Income
Derivatives in Cash Flow Hedging Relationships		2018				2017						2018			2017
Interest Rate Swaps		$	6.8			$	1.7			Interest expense		$	0.4		$	—

As of December 31, 2018, the amount we expect to be reclassified into earnings in the next 12 months as a decrease to interest expense is approximately $0.7 million.

Credit-Risk-Related Contingent Features. Derivative financial investments expose us to credit risk in the event of non-performance by the counterparties under the terms of the interest rate hedge agreements. The Company has an agreement with a derivative counterparty that contains a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness. As of December 31, 2018, the fair value of derivatives in a net liability position, which excludes any adjustment for nonperformance risk, related to these agreements was approximately $7.4 million.

12. Share-based Compensation and Benefit Plans

Incentive Compensation. We currently maintain the 2018 Share Incentive Plan (the “2018 Share Plan”) and the 2011 Share Incentive Plan (the “2011 Share Plan”), although no new awards may be granted under the 2011 Plan. Each of these plans were approved by the Company’s 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 officers and employees of the Company or any of its subsidiaries, Trust Managers of the Company, and certain consultants and advisors to the Company or any of its subsidiaries. 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 set forth 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 December 31, 2018, there were approximately 8.2 million common shares available under the 2018 Share Plan, which would result in approximately 2.4 million shares which could be granted pursuant to full value awards conversion ratios as defined under the plan.

Total compensation cost for option and share awards charged against income was approximately $17.8 million, $18.8 million, and $21.3 million for 2018, 2017 and 2016, respectively. Total capitalized compensation cost for option and share awards was approximately $3.0 million for the year ended December 31, 2018, and was $3.8 million for both years ended December 31, 2017, and 2016.

A summary of activity under our share incentive plans for the year ended December 31, 2018 is shown below:

	Options Outstanding			Weighted Average Exercise / Grant Price				Nonvested Share Awards Outstanding			Weighted Average Exercise / Grant Price
Options and nonvested share awards outstanding at December 31, 2017	68,978			$	61.15			499,898			$	75.80
Granted	9,994			78.55				232,478			82.81
Exercised/Vested	(78,972	)		63.35				(316,668	)		75.66
Forfeited	—			—				(25,027	)		79.83
Total options and nonvested share awards outstanding at December 31, 2018	—			$	—			390,681			$	79.82

Options. Stock options other than reload options have a contractual life of ten years and vest over periods up to five years. Reload options vest at the grant date. Reload options are granted for the number of shares tendered as payment for the exercise price upon the exercise of an option with a reload provision. The reload options granted had an exercise price equal to the fair market value of a common share on the date of grant and expired on the same date as the original options which were exercised. None of our current incentive compensation plans carry reload option rights, and all of our obligations relating to reload options have been satisfied as of December 31, 2018. Expense for stock options is based on grant date fair value and recognized on a straight-line method over the vesting period.

We estimate the fair values of each option award on the date of grant using the Black-Scholes option pricing model. The weighted-average fair value of reload stock options granted during the years ended December 31, 2018, 2017 and 2016 and the weighted-average assumptions for such grants were as follows:

		Year Ended December 31, 2018		Year Ended December 31, 2017		Year Ended December 31, 2016
Weighted average fair value of options granted		$4.11		$5.25		$6.71
Expected volatility		15.1%		18.9%		18.0%
Risk-free interest rate		2.0%		1.3%		0.9%
Expected dividend yield		3.3%		5.5%		3.8%
Expected life		1 year		2 years		3 years

Our computations of expected volatility for 2018, 2017, and 2016 are based on the historical volatility of our common shares over a time period equal to the expected life of the option and ending on the grant date, and the interest rate for periods within the contractual life of the award is based on the U.S. Treasury yield curve in effect at the time of grant. The expected dividend yield on our common shares is based on the historical dividend yield over the expected term of the options granted. Our computation

of expected life is based upon historical experience of similar awards, giving consideration to the contractual terms of the share-based awards.

The total intrinsic value of options exercised was approximately $2.0 million, $2.2 million, and $8.9 million during the years ended December 31, 2018, 2017, and 2016, respectively. At December 31, 2018, there was no unrecognized compensation cost related to unvested options and there were no options outstanding.

Share Awards and Vesting. Share awards for employees vest over periods up to five 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, with 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.

At December 31, 2018, the weighted average fair value of share awards granted was $82.81, $83.41 and $74.92 in 2018, 2017 and 2016, respectively. The total fair value of shares vested during the years ended December 31, 2018, 2017 and 2016 was approximately $24.0 million, $23.1 million, and $27.2 million, respectively. At December 31, 2018, the unamortized value of previously issued unvested share awards was approximately $15.4 million which is expected to be amortized over the next two years.

Employee Share Purchase Plan (“ESPP”). In May 2018, our shareholders approved the 2018 Employee Share Purchase Plan (the "2018 ESPP") which amends and restates our 1999 Employee Share Purchase Plan (the "1999 ESPP") effective with the offering period commencing in June 2018. Under the 2018 ESPP, we may issue up to a total of approximately 500,000 common shares. The 2018 ESPP permits eligible employees to purchase our common shares either through payroll deductions or through semi-annual contributions. Each offering period has a six month duration commencing in June and December for which shares may be purchased at 85% of the market value, as defined on the first or last day of the offering period, whichever price is lower. We currently use treasury shares to satisfy ESPP share requirements. Each participant must hold the shares purchased for nine months in order to receive the discount, and a participant may not purchase more than $25,000 in value of shares during any plan year, as defined. The following table presents information related to our ESPP:

	2018				2017				2016
Shares purchased	15,330				18,986				20,797
Weighted average fair value of shares purchased	$	90.93			$	89.89			$	82.33
Expense recorded (in millions)	$	0.2			$	0.3			$	0.4

Rabbi Trust. We established a rabbi trust for a select group of participants in which share awards granted under the share incentive plan and salary and other cash amounts earned may be deposited. The rabbi trust is only in use for deferrals made prior to 2005, including bonuses related to service in 2004 but paid in 2005. The rabbi trust is an irrevocable trust and no portion of the trust fund may be used for any purpose other than the delivery of those assets to the participants. The assets held in the rabbi trust are subject to the claims of our general creditors in the event of bankruptcy or insolvency.

The value of the assets of the rabbi trust is consolidated into our financial statements. Granted share awards held by the rabbi trust are classified in equity in a manner similar to the manner in which treasury stock is accounted. Subsequent changes in the fair value of the shares are not recognized. The deferred compensation obligation is classified as an equity instrument and changes in the fair value of the amount owed to the participant are not recognized. At both December 31, 2018 and 2017, approximately 1.7 million share awards were held in the rabbi trust. Additionally, as of December 31, 2018 and 2017, the rabbi trust held trading securities totaling approximately $14.9 million and $26.7 million, respectively, which represents cash deferrals made by plan participants. Market value fluctuations on these trading securities are recognized in income in accordance with GAAP and the liability due to participants is adjusted accordingly.

At December 31, 2018 and 2017, approximately $21.2 million and $22.3 million, respectively, was required to be paid to us by plan participants upon the withdrawal of any assets from the rabbi trust, and is included in “Accounts receivable-affiliates” in our consolidated financial statements.

Non-Qualified Deferred Compensation Share Awards. In 2004, we established a Non-Qualified Deferred Compensation Plan which is an unfunded arrangement established and maintained primarily for the benefit of a select group of participants. Eligible participants commence participation in this plan on the date the deferral election first becomes effective. We credit to the participant's account an amount equal to the amount designated as the participant's deferral for the plan year as indicated in the participant's deferral election(s). Any modification to or termination of the plan will not reduce a participant's right to any vested amounts already credited to his or her account. Approximately 0.7 million and 1.0 million share awards were held in the plan at December 31, 2018 and 2017, respectively. Additionally, as of December 31, 2018 and 2017, the plan held trading securities totaling approximately $129.8 million and $93.6 million, respectively, which represents cash deferrals made by plan participants and diversification of share awards within the plan to trading securities. Market value fluctuations on these trading securities are

recognized in income in accordance with GAAP and the liability due to participants is adjusted accordingly. The assets held in the Non-Qualified Deferred Compensation Plan are subject to the claims of our general creditors in the event of bankruptcy or insolvency.

The plan, as amended, permitted diversification of fully vested share awards into other equity securities subject to a six month holding period. Balances within temporary equity in our consolidated balance sheets relate to fully vested awards and the proportionate share of nonvested awards of participants within our Non-Qualified Deferred Compensation Plan who were permitted to diversify their shares into other equity securities.

The following table summarizes the eligible share award activity for the twelve months ended December 31:

(in thousands)		2018				2017
Temporary equity:
Balance at inception/beginning of period		$	77,230			$	77,037
Change in classification		16,407				13,388
Change in redemption value		(669		)		10,038
Diversification of share awards (429 and 261 shares during December 31, 2018 and 2017, respectively)		(40,294		)		(23,233		)
Balance at December 31		$	52,674			$	77,230

In December 2018, the plan was amended and restated and effective January 1, 2019 participants in the plan are no longer able to diversify their common shares six months after vesting. Thus, the fully vested share awards and the proportionate share of nonvested share awards eligible for diversification at the amendment date were reclassified on the effective date from temporary equity into additional paid-in capital in our consolidated balance sheet. Deferred share-based compensation cannot be diversified, and distributions from this plan are made in the same form as the original deferral.

401(k) Savings Plan. We have a 401(k) savings plan, which is a voluntary defined contribution plan, which provides participating employees the ability to elect to contribute up to 60 percent of eligible compensation, subject to limitations as defined by the federal tax code, with the Company making matching contributions up to a predetermined limit. The matching contributions made for the year ended December 31, 2018, was approximately $2.9 million, and were approximately $2.7 million for the each of the years ended December 31, 2017 and 2016. Employees become vested in our matching contributions 33% after one year of service, 67% after two years of service and 100% after three years of service.

13. Fair Value Measurements

Recurring Fair Value Disclosures. The following table presents information about our financial instruments measured at fair value on a recurring basis as of December 31, 2018 and 2017 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

	December 31, 2018																December 31, 2017
(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)	$	144.7			$	—			$	—			$	144.7			$	120.3			$	—			$	—			$	120.3
Derivative financial instruments - forward interest rate swap	—				—				—				—				—				2.2				—				2.2
Other Liabilities
Derivative financial instruments - forward interest rate swaps	$	—			$	7.4			$	—			$	7.4			$	—			$	0.5			$	—			$	0.5

(1)

Approximately $12.7 million and $4.2 million of participant cash was withdrawn from our deferred compensation plan investments during the years ended December 31, 2018 and 2017, respectively. Approximately $40.3 million and $23.2 million of shares within the deferred compensation plan were diversified into other deferred compensation plan investments during the years ended December 31, 2018 and 2017, respectively.

Nonrecurring Fair Value Disclosures. The nonrecurring fair value disclosures inputs under the fair value hierarchy are discussed in Note 2, “Summary of Significant Accounting Policies and Recent Accounting Pronouncements.” We completed three asset acquisitions of operating properties during the year ended December 31, 2018 and one asset acquisition of an operating property during the year ended December 31, 2017. We recorded the real estate assets and identifiable below market and in-place leases at their relative fair values based upon methods similar to those used by independent appraisers of income producing properties. The fair value measurements associated with the valuation of these acquired assets represent Level 3 measurements within the fair value hierarchy. See Note 8, "Acquisitions, Dispositions, and Discontinued Operations" for a further discussion about these acquisitions.

Financial Instrument Fair Value Disclosures. The following table presents the carrying and estimated fair values of our notes payable at December 31, 2018 and 2017, in accordance with the policies discussed in Note 2, "Summary of Significant Accounting Policies and Recent Accounting Pronouncements."

	December 31, 2018								December 31, 2017
(in millions)	Carrying Value				Estimated Fair Value				Carrying Value				Estimated Fair Value
Fixed rate notes payable	$	2,222.0			$	2,265.4			$	2,029.6			$	2,106.5
Floating rate notes payable	99.6				99.4				175.0				173.7

14. Net Change in Operating Accounts

The effect of changes in the operating accounts and other on cash flows from operating activities is as follows:

	Year Ended December 31,
(in thousands)	2018				2017				2016
Change in assets:
Other assets, net	$	10,364			$	(6,724	)		$	(3,551	)
Change in liabilities:
Accounts payable and accrued expenses	(4,133		)		(2,300		)		(2,309		)
Accrued real estate taxes	1,910				2,342				5,526
Other liabilities	(1,486		)		(995		)		(2,361		)
Other	2,898				2,831				2,976
Change in operating accounts and other	$	9,553			$	(4,846	)		$	281

15. Commitments and Contingencies

Construction Contracts. As of December 31, 2018, we estimate the additional cost to complete the six consolidated projects currently under construction to be approximately $335.2 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 credit facility or other short-term borrowing, the use of debt and equity offerings under our automatic shelf registration statement, proceeds from property dispositions, equity issued from our 2017 ATM program, 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 allegations 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 believes the final outcome of such matters will not have a material adverse effect on our consolidated financial statements.

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 December 31, 2018, we had $2.9 million in earnest money deposits of which $0.4 million is non-refundable for potential acquisitions of operating properties and land which are included in other assets, net in our consolidated balance sheet.

Lease Commitments. At December 31, 2018, we had long-term leases covering certain land, office facilities and equipment. Rental expense totaled approximately $3.8 million, $4.0 million, and $4.1 million for the years ended December 31, 2018, 2017 and 2016, respectively. Minimum annual rental commitments for the years ending December 31, 2019 through 2023 are approximately $2.9 million, $3.0 million, $3.1 million, $2.7 million and $2.6 million, respectively, and approximately $4.5 million in the aggregate thereafter.

Investments in Joint Ventures. We have entered into, and may continue in the future to enter into, joint ventures or partnerships (including limited liability companies) through which we own an indirect economic interest in less than 100% of the community or land owned directly by the joint venture or partnership. Our decision whether to hold the entire interest in an apartment community or land ourselves, or to have an indirect interest in the community or land through a joint venture or partnership, is based on a variety of factors and considerations, including: (i) our projection, in some circumstances, that we will achieve higher returns on our invested capital or reduce our risk if a joint venture or partnership vehicle is used; (ii) our desire to diversify our portfolio of investments by market; (iii) our desire at times to preserve our capital resources to maintain liquidity or balance sheet strength; and (iv) the economic and tax terms required by a seller of land or of a community, who may prefer or who may require less payment if the land or community is contributed to a joint venture or partnership. Investments in joint ventures or partnerships are not limited to a specified percentage of our assets. Each joint venture or partnership agreement is individually negotiated, and our ability to operate or dispose of land or of a community in our sole discretion may be limited to varying degrees in our existing joint venture agreements and may be limited to varying degrees depending on the terms of future joint venture agreements.

Employment Agreements. At December 31, 2018, we had employment agreements with 13 of our senior officers, the terms of which expire at various times through August 20, 2019. Such agreements provide for minimum salary levels as well as various incentive compensation arrangements, which are payable based on the attainment of specific goals. The agreements also provide for severance payments plus a gross-up payment if certain situations occur, such as termination without cause or a change of control. In the case of 10 of the agreements, the severance payment equals one times the respective current annual base salary in the case of termination without cause and 2.99 times the respective average annual base salary over the previous three fiscal years in the case of a change of control and a termination of employment or a material adverse change in the scope of their duties. In the case of one agreement, the severance payment equals one times the respective current annual base salary for termination without cause and 2.99 times the greater of current gross income or average gross income over the previous three fiscal years in the case of a change of control. In the case of the other two agreements, the severance payment generally equals 2.99 times the respective average annual compensation over the previous three fiscal years in connection with, among other things, a termination without cause or a change of control, and the officer would be entitled to receive continuation and vesting of certain benefits in the case of such termination.

16. Quarterly Financial Data (unaudited)

Summarized quarterly financial data for the years ended December 31, 2018 and 2017, is as follows:

(in thousands, except per share amounts)	First				Second				Third				Fourth				Total (a)
2018:
Revenues	$	230,683			$	237,133			$	241,770			$	244,919			$	954,505
Net income attributable to common shareholders	39,395				38,671				38,866				39,196				156,128
Net income attributable to common shareholders per share – basic	0.41				0.40				0.41				0.41				1.63
Net income attributable to common shareholders per share – diluted	0.41				0.40				0.40				0.41				1.63
2017:
Revenues	$	219,521			$	223,370			$	228,178			$	229,827			$	900,896
Net income attributable to common shareholders	34,861				39,188				34,384				87,989				196,422
Net income attributable to common shareholders per share – basic	0.39				0.43				0.38			(b)	0.92			(c)	2.14
Net income attributable to common shareholders per share – diluted	0.39				0.43				0.38			(b)	0.91			(c)	2.13

(a)	Net income per share is computed independently for each of the quarters presented. Therefore, the sum of quarterly net income per share amounts may not equal the total computed for the year.

(b)	Includes a $4,987, or $0.05 basic and diluted per share, impact related to expenses due to Hurricanes Harvey and Irma.

(c)	Includes a $43,231, or $0.46 basic and $0.45 diluted per share, impact related to a gain on sale of one operating property.

Camden Property Trust Real Estate and Accumulated Depreciation As of December 31, 2018 (in thousands)																																					Schedule III
	Initial Cost												Total Cost
	Land				Building/ Construction in Progress & Improvements				Cost Subsequent to Acquisition/ Construction				Land				Building/ Construction in Progress & Improvements				Total				Accumulated Depreciation				Total Cost, Net of Accumulated Depreciation				Encumbrances				Year of Completion/ Acquisition
Current communities:
ARIZONA
Phoenix/Scottsdale
Camden Chandler	$	5,511			$	62,429			$	199			$	5,511			$	62,628			$	68,139			$	9,242			$	58,897							2016
Camden Copper Square	4,825				23,672				7,892				4,825				31,564				36,389				19,107				17,282								2000
Camden Foothills	11,006				33,712				223				11,006				33,935				44,941				6,135				38,806								2014
Camden Hayden	9,248				35,254				150				9,248				35,404				44,652				5,812				38,840								2015
Camden Legacy	4,068				26,612				14,159				4,068				40,771				44,839				26,909				17,930								1998
Camden Montierra	13,687				31,727				5,671				13,687				37,398				51,085				9,289				41,796								2012
Camden Pecos Ranch	3,362				24,492				5,699				3,362				30,191				33,553				9,266				24,287								2012
Camden San Marcos	11,520				35,166				6,033				11,520				41,199				52,719				10,536				42,183								2012
Camden San Paloma	6,480				23,045				10,382				6,480				33,427				39,907				17,856				22,051								2002
Camden Sotelo	3,376				30,576				1,283				3,376				31,859				35,235				6,444				28,791								2013
CALIFORNIA
Los Angeles/Orange County
Camden Crown Valley	9,381				54,210				10,382				9,381				64,592				73,973				34,812				39,161								2001
Camden Glendale	21,492				96,158				331				21,492				96,489				117,981				13,770				104,211								2015
Camden Harbor View	16,079				127,459				23,253				16,079				150,712				166,791				66,559				100,232				$	92,699			2003
Camden Main and Jamboree	17,363				75,387				2,335				17,363				77,722				95,085				20,949				74,136				45,895				2008
Camden Martinique	28,401				51,861				24,154				28,401				76,015				104,416				46,188				58,228								1998
Camden Sea Palms	4,336				9,930				7,641				4,336				17,571				21,907				9,667				12,240								1998
The Camden	18,286				118,730				215				18,286				118,945				137,231				13,137				124,094								2016
San Diego/Inland Empire
Camden Landmark	17,339				71,315				2,977				17,339				74,292				91,631				17,087				74,544								2012
Camden Old Creek	20,360				71,777				9,093				20,360				80,870				101,230				28,800				72,430								2007
Camden Sierra at Otay Ranch	10,585				49,781				6,421				10,585				56,202				66,787				27,329				39,458								2003
Camden Tuscany	3,330				36,466				5,196				3,330				41,662				44,992				20,004				24,988								2003
Camden Vineyards	4,367				28,494				4,694				4,367				33,188				37,555				16,808				20,747								2002
COLORADO
Denver
Camden Belleview Station	8,091				44,003				3,404				8,091				47,407				55,498				10,391				45,107								2012
Camden Caley	2,047				17,445				7,020				2,047				24,465				26,512				13,931				12,581				15,349				2000
Camden Denver West	6,396				51,552				11,860				6,396				63,412				69,808				13,711				56,097								2012
Camden Flatirons	$	6,849			$	72,631			$	413			$	6,849			$	73,044			$	79,893			$	12,825			$	67,068							2015
Camden Highlands Ridge	2,612				34,726				20,608				2,612				55,334				57,946				28,524				29,422								1996
Camden Interlocken	5,293				31,612				17,062				5,293				48,674				53,967				25,904				28,063				$	27,426			1999
Camden Lakeway	3,915				34,129				23,002				3,915				57,131				61,046				31,405				29,641				29,262				1997
Camden Lincoln Station	4,648				51,762				86				4,648				51,848				56,496				5,015				51,481								2017
WASHINGTON DC METRO
Camden Ashburn Farm	4,835				22,604				5,758				4,835				28,362				33,197				11,441				21,756								2005
Camden College Park	16,409				91,503				6,950				16,409				98,453				114,862				25,352				89,510								2008
Camden Dulles Station	10,807				61,548				5,558				10,807				67,106				77,913				22,346				55,567								2008
Camden Fair Lakes	15,515				104,223				13,204				15,515				117,427				132,942				48,905				84,037								2005
Camden Fairfax Corner	8,484				72,953				9,642				8,484				82,595				91,079				33,123				57,956								2006
Camden Fallsgrove	9,408				43,647				5,545				9,408				49,192				58,600				21,337				37,263								2005
Camden Grand Parc	7,688				35,900				2,981				7,688				38,881				46,569				15,927				30,642								2005
Camden Lansdowne	15,502				102,267				24,504				15,502				126,771				142,273				49,157				93,116								2005
Camden Largo Town Center	8,411				44,163				4,280				8,411				48,443				56,854				20,068				36,786								2005
Camden Monument Place	9,030				54,089				3,651				9,030				57,740				66,770				20,847				45,923								2007
Camden NoMa	19,442				82,306				274				19,442				82,580				102,022				17,430				84,592								2014
Camden NoMa II	17,331				91,211				39				17,331				91,250				108,581				12,378				96,203								2017
Camden Potomac Yard	16,498				88,317				8,265				16,498				96,582				113,080				31,907				81,173								2008
Camden Roosevelt	11,470				45,785				4,238				11,470				50,023				61,493				20,151				41,342								2005
Camden Russett	13,460				61,837				6,861				13,460				68,698				82,158				29,016				53,142				45,056				2005
Camden Shady Grove	24,177				89,820				30				24,177				89,850				114,027				9,404				104,623								2018
Camden Silo Creek	9,707				45,301				7,703				9,707				53,004				62,711				20,688				42,023								2005
Camden Washingtonian	13,512				73,285				—				13,512				73,285				86,797				2,532				84,265								2018
FLORIDA
Southeast Florida
Camden Aventura	12,185				47,616				13,055				12,185				60,671				72,856				27,617				45,239								2005
Camden Boca Raton	2,201				50,057				268				2,201				50,325				52,526				8,742				43,784								2014
Camden Brickell	14,621				57,031				23,217				14,621				80,248				94,869				32,025				62,844								2005
Camden Doral	10,260				40,416				7,542				10,260				47,958				58,218				20,465				37,753								2005
Camden Doral Villas	6,476				25,543				7,590				6,476				33,133				39,609				14,881				24,728								2005
Camden Las Olas	12,395				79,518				19,634				12,395				99,152				111,547				39,655				71,892								2005
Camden Plantation	6,299				77,964				11,402				6,299				89,366				95,665				38,047				57,618								2005
Camden Portofino	9,867				38,702				9,382				9,867				48,084				57,951				20,170				37,781								2005
Orlando
Camden Hunter's Creek	$	4,156			$	20,925			$	5,769			$	4,156			$	26,694			$	30,850			$	12,172			$	18,678							2005
Camden Lago Vista	3,497				29,623				6,033				3,497				35,656				39,153				15,582				23,571								2005
Camden LaVina	12,907				42,617				1,036				12,907				43,653				56,560				12,072				44,488								2012
Camden Lee Vista	4,350				34,643				8,524				4,350				43,167				47,517				24,338				23,179								2000
Camden North Quarter	9,990				68,471				742				9,990				69,213				79,203				3,641				75,562								2018
Camden Orange Court	5,319				40,733				3,300				5,319				44,033				49,352				15,681				33,671								2008
Camden Thornton Park	11,711				74,628				137				11,711				74,765				86,476				1,155				85,321								2018
Camden Town Square	13,127				45,997				833				13,127				46,830				59,957				11,711				48,246								2012
Camden World Gateway	5,785				51,821				8,348				5,785				60,169				65,954				25,433				40,521								2005
Tampa/St. Petersburg
Camden Bay	7,450				63,283				15,072				7,450				78,355				85,805				43,641				42,164								1998/2002
Camden Montague	3,576				16,534				472				3,576				17,006				20,582				4,849				15,733								2012
Camden Pier District	16,704				105,383				851				16,704				106,234				122,938				6,025				116,913								2018
Camden Preserve	1,206				17,982				8,795				1,206				26,777				27,983				17,337				10,646								1997
Camden Royal Palms	2,147				38,339				3,905				2,147				42,244				44,391				15,779				28,612								2007
Camden Westchase Park	11,955				36,254				609				11,955				36,863				48,818				9,560				39,258								2012
GEORGIA
Atlanta
Camden Brookwood	7,174				31,984				8,835				7,174				40,819				47,993				18,783				29,210								2005
Camden Buckhead Square	13,200				43,785				657				13,200				44,442				57,642				2,928				54,714								2017
Camden Creekstone	5,017				19,912				5,148				5,017				25,060				30,077				5,804				24,273								2012
Camden Deerfield	4,895				21,922				8,376				4,895				30,298				35,193				13,970				21,223								2005
Camden Dunwoody	5,290				23,642				9,038				5,290				32,680				37,970				15,425				22,545								2005
Camden Fourth Ward	10,477				51,258				1,148				10,477				52,406				62,883				9,468				53,415								2014
Camden Midtown Atlanta	6,196				33,828				10,645				6,196				44,473				50,669				19,631				31,038								2005
Camden Paces	15,262				102,521				828				15,262				103,349				118,611				17,913				100,698								2015
Camden Peachtree City	6,536				29,063				7,636				6,536				36,699				43,235				16,374				26,861								2005
Camden Shiloh	4,181				18,798				5,972				4,181				24,770				28,951				11,595				17,356				10,565				2005
Camden St. Clair	7,526				27,486				8,010				7,526				35,496				43,022				16,859				26,163								2005
Camden Stockbridge	5,071				22,693				4,859				5,071				27,552				32,623				12,396				20,227								2005
Camden Vantage	11,787				68,822				3,747				11,787				72,569				84,356				15,103				69,253								2013
NORTH CAROLINA
Charlotte
Camden Ballantyne	$	4,503			$	30,250			$	9,067			$	4,503			$	39,317			$	43,820			$	18,565			$	25,255							2005
Camden Cotton Mills	4,246				19,147				6,703				4,246				25,850				30,096				12,629				17,467								2005
Camden Dilworth	516				16,633				2,568				516				19,201				19,717				8,067				11,650								2006
Camden Fairview	1,283				7,223				4,327				1,283				11,550				12,833				6,188				6,645								2005
Camden Foxcroft	1,408				7,919				4,620				1,408				12,539				13,947				6,588				7,359								2005
Camden Foxcroft II	1,152				6,499				3,216				1,152				9,715				10,867				4,603				6,264								2005
Camden Gallery	7,930				51,957				114				7,930				52,071				60,001				6,141				53,860								2017
Camden Grandview	7,570				33,859				11,922				7,570				45,781				53,351				20,152				33,199								2005
Camden Sedgebrook	5,266				29,211				7,723				5,266				36,934				42,200				17,475				24,725								2005
Camden South End	6,625				29,175				11,276				6,625				40,451				47,076				17,595				29,481								2005
Camden Stonecrest	3,941				22,021				6,451				3,941				28,472				32,413				13,817				18,596								2005
Camden Touchstone	1,203				6,772				3,528				1,203				10,300				11,503				5,406				6,097								2005
Raleigh
Camden Crest	4,412				31,108				6,773				4,412				37,881				42,293				16,333				25,960								2005
Camden Governor's Village	3,669				20,508				6,291				3,669				26,799				30,468				11,585				18,883								2005
Camden Lake Pine	5,746				31,714				13,579				5,746				45,293				51,039				20,048				30,991								2005
Camden Manor Park	2,535				47,159				8,835				2,535				55,994				58,529				21,551				36,978								2006
Camden Overlook	4,591				25,563				9,781				4,591				35,344				39,935				17,017				22,918								2005
Camden Reunion Park	3,302				18,457				10,791				3,302				29,248				32,550				12,781				19,769								2005
Camden Westwood	4,567				25,519				9,062				4,567				34,581				39,148				14,891				24,257								2005
TEXAS
Austin
Camden Cedar Hills	2,684				20,931				2,072				2,684				23,003				25,687				8,336				17,351								2008
Camden Gaines Ranch	5,094				37,100				10,344				5,094				47,444				52,538				21,613				30,925								2005
Camden Huntingdon	2,289				17,393				10,470				2,289				27,863				30,152				19,185				10,967								1995
Camden La Frontera	3,250				32,376				363				3,250				32,739				35,989				6,210				29,779								2015
Camden Lamar Heights	3,988				42,773				356				3,988				43,129				47,117				8,103				39,014								2015
Camden Stoneleigh	3,498				31,285				8,478				3,498				39,763				43,261				17,559				25,702								2006
Corpus Christi
Camden Breakers	1,055				13,024				14,405				1,055				27,429				28,484				15,973				12,511								1996
Camden Copper Ridge	1,204				9,180				9,511				1,204				18,691				19,895				15,730				4,165								1993
Dallas/Fort Worth
Camden Addison	11,516				29,332				8,262				11,516				37,594				49,110				11,925				37,185								2012
Camden Belmont	$	12,521			$	61,522			$	5,312			$	12,521			$	66,834			$	79,355			$	15,342			$	64,013							2012
Camden Buckingham	2,704				21,251				10,705				2,704				31,956				34,660				20,173				14,487								1997
Camden Centreport	1,613				12,644				6,659				1,613				19,303				20,916				12,044				8,872								1997
Camden Cimarron	2,231				14,092				8,020				2,231				22,112				24,343				15,848				8,495								1997
Camden Farmers Market	17,341				74,193				22,213				17,341				96,406				113,747				49,780				63,967				$	50,704			2001/2005
Camden Henderson	3,842				15,256				648				3,842				15,904				19,746				4,154				15,592								2012
Camden Legacy Creek	2,052				12,896				6,786				2,052				19,682				21,734				13,325				8,409								1997
Camden Legacy Park	2,560				15,449				8,070				2,560				23,519				26,079				15,528				10,551				13,864				1997
Camden Valley Park	3,096				14,667				15,344				3,096				30,011				33,107				28,118				4,989								1994
Camden Victory Park	13,445				71,735				158				13,445				71,893				85,338				9,086				76,252								2016
Houston
Camden City Centre	4,976				44,735				3,853				4,976				48,588				53,564				18,081				35,483				33,790				2007
Camden City Centre II	5,101				28,131				426				5,101				28,557				33,658				7,514				26,144								2013
Camden Greenway	16,916				43,933				20,313				16,916				64,246				81,162				39,943				41,219								1999
Camden Holly Springs	11,108				42,852				12,030				11,108				54,882				65,990				16,527				49,463								2012
Camden McGowen Station	6,089				84,649				—				6,089				84,649				90,738				3,443				87,295								2018
Camden Midtown	4,583				18,026				10,559				4,583				28,585				33,168				18,258				14,910				28,054				1999
Camden Oak Crest	2,078				20,941				5,890				2,078				26,831				28,909				13,922				14,987								2003
Camden Park	4,922				16,453				6,030				4,922				22,483				27,405				6,789				20,616								2012
Camden Plaza	7,204				31,044				2,452				7,204				33,496				40,700				9,188				31,512				19,357				2007
Camden Post Oak	14,056				92,515				18,434				14,056				110,949				125,005				22,852				102,153								2013
Camden Royal Oaks	1,055				20,046				2,839				1,055				22,885				23,940				9,387				14,553								2006
Camden Royal Oaks II	587				12,743				25				587				12,768				13,355				3,457				9,898								2012
Camden Stonebridge	1,016				7,137				6,717				1,016				13,854				14,870				9,384				5,486								1993
Camden Sugar Grove	7,614				27,594				4,251				7,614				31,845				39,459				8,428				31,031								2012
Camden Travis Street	1,780				29,104				1,284				1,780				30,388				32,168				10,120				22,048								2010
Camden Vanderbilt	16,076				44,918				25,144				16,076				70,062				86,138				47,043				39,095				73,155				1994/1997
Camden Whispering Oaks	1,188				26,242				1,711				1,188				27,953				29,141				10,392				18,749								2008
Total current communities:	$	1,083,532			$	5,865,522			$	979,497			$	1,083,532			$	6,845,019			$	7,928,551			$	2,400,440			$	5,528,111			$	485,176
Communities under construction:
Name / location
Camden North End I (1) Phoenix, AZ					$	95,865											$	95,865			$	95,865			$	2,596			$	93,269							N/A
Camden Grandview II (1) Charlotte, NC					21,267												21,267				21,267				113				21,154								N/A
Camden RiNo Denver, CO					41,594												41,594				41,594								41,594								N/A
Camden Downtown I Houston, TX					58,963												58,963				58,963								58,963								N/A
Camden Lake Eola Orlando, FL					34,016												34,016				34,016								34,016								N/A
Camden Buckhead Atlanta, GA					26,073												26,073				26,073								26,073								N/A
Total communities under construction:	$	—			$	277,778			$	—			$	—			$	277,778			$	277,778			$	2,709			$	275,069			$	—
Development pipeline communities:
Name/location
Camden North End II Phoenix, AZ					$	15,301											$	15,301			$	15,301							$	15,301							N/A
Camden Hillcrest San Diego, CA					28,853												28,853				28,853								28,853								N/A
Camden Atlantic Plantation, FL					16,666												16,666				16,666								16,666								N/A
Camden Arts District Los Angeles, CA					21,471												21,471				21,471								21,471								N/A
Camden Paces III Atlanta, GA					14,632												14,632				14,632								14,632								N/A
Camden Downtown II Houston, TX					10,719												10,719				10,719								10,719								N/A
Total development pipeline communities:	$	—			$	107,642			$	—			$	—			$	107,642			$	107,642			$	—			$	107,642			$	—
Corporate					14,504								—				14,504				14,504								14,504								N/A
	$	—			$	14,504			$	—			$	—			$	14,504			$	14,504			$	—			$	14,504			$	—
TOTAL	$	1,083,532			$	6,265,446			$	979,497			$	1,083,532			$	7,244,943			$	8,328,475			$	2,403,149			$	5,925,326			$	485,176

(1)	Properties are in lease-up at December 31, 2018. Balances presented here includes costs which are included in buildings and improvements and land on the consolidated balance sheet at December 31, 2018. These costs related to completed unit turns for these properties.

S-1

Camden Property Trust Real Estate and Accumulated Depreciation As of December 31, 2018 (in thousands)	Schedule III

The changes in total real estate assets as adjusted for discontinued operations for the years ended December 31:

	2018				2017				2016
Balance, beginning of period	$	7,667,743			$	7,376,690			$	7,387,597
Additions during period:
Acquisition of operating properties	286,901				56,985				—
Development and repositions	300,294				224,202				278,447
Improvements	84,841				71,889				65,892
Deductions during period:
Cost of real estate sold – other	(11,304		)		(62,023		)		(355,246		)
Balance, end of period	$	8,328,475			$	7,667,743			$	7,376,690
The changes in accumulated depreciation for the years ended December 31:
	2018				2017				2016
Balance, beginning of period	$	2,118,839			$	1,890,656			$	1,780,694
Depreciation of real estate assets	284,310				255,924				243,403
Dispositions	—				(27,741		)		(133,441		)
Balance, end of period	$	2,403,149			$	2,118,839			$	1,890,656

The aggregate cost for federal income tax purposes at December 31, 2018 was $7.5 billion.

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Camden Property Trust Mortgage Loans on Real Estate As of December 31, 2018												Schedule IV
($ in thousands) Description		Interest Rate		Final Maturity Date		Periodic payment terms		Face amount of mortgages				Carry amount of mortgages (a)
Parking Garage Developer advances Houston, TX		(b)		October 1, 2025		(c)		$	9,314			$	9,314

(a)	The aggregate cost at December 31, 2018 for federal income tax purposes was approximately $9,314.

(b)	This loan currently bears interest at 4% and will increase to 7% on any unpaid principal balance on January 1, 2019 with the completion of our planned apartment project at an adjacent location.

(c)	Payments will consist of annual interest and principal payments from October 1, 2018 to October 1, 2025.

Changes in mortgage loans for the years ended December 31 are summarized below:

	2018				2017				2016
Balance, beginning of period	$	18,790			$	17,224			$	13,161
Additions:
Advances under real estate loans	—				1,566				7,458
Deductions:
Collections of principal and loan payoff	(9,476		)		—				(3,395		)
Balance, end of period	$	9,314			$	18,790			$	17,224

S-3