CCG Announces Successful Disposition of Four Non-Core Assets for $50.0 Million
January 13 2014 - 4:20PM
Business Wire
Campus Crest Communities, Inc. (NYSE: CCG) (the “Company”) today
announced that it closed on the sale of four wholly-owned student
housing properties on December 27, 2013. The four Grove-branded
properties were unencumbered and generated net proceeds to the
Company of approximately $50.0 million. Based on the Company’s 2013
NOI estimate for these properties, the estimated weighted average
nominal cap rate on the dispositions was approximately 7.6%.
Property Name University
Year
Opened
Units Beds
Distance
(miles)
Enrollment Tuition
Dispositions The Grove at Jacksonville, AL
Jacksonville State University 2007 192 504 0.2 9,161 $7,950 The
Grove at Jonesboro, AR Arkansas State University 2008 192 504 0.3
13,877 6,934 The Grove at Wichita, KS Wichita State University 2008
192 504 1.1 14,893 5,418 The Grove at Wichita Falls, TX Midwestern
State University 2008 192 504 1.2 5,916
7,238
Total / Median / Average (1) 768
2,016 0.7 10,962 $6,885 (1)
Reflects total units and beds, median distance to campus, and
average enrollment and tuition
For the twelve months ended September 30, 2013, occupancy for
the four dispositions was 87.3%, total RevPOB was $446 and NOI
margin was 41.1%. By comparison, occupancy, total RevPOB and NOI
margin for the Company’s remaining 28 wholly-owned operating
properties during the same period were 92.8%, $514 and 55.8%,
respectively.
“These dispositions reflect our commitment to continually
improve the quality of our portfolio by selling older generation,
non-core assets with lower long-term NOI growth prospects compared
to our core portfolio,” said Ted W. Rollins, the Company’s Chairman
and Chief Executive Officer. “Dispositions are currently an
attractive source of capital, and we plan to recycle a portion of
the proceeds into higher yielding developments, as well as pay down
a portion of our outstanding credit facility balance in the
interim."
About Campus Crest Communities, Inc.
Campus Crest Communities, Inc. is a leading developer, builder,
owner and manager of high-quality student housing properties
located close to college campuses in targeted markets. Pro forma
for the Copper Beech restructure, the Company has ownership
interests in 78 student housing properties and over ~42,000 beds
across North America, of which 70 are operating and 8 are
development or redevelopment properties. The Company is an equity
REIT that differentiates itself through its vertical integration
and consistent branding across the portfolio through three unique
brands targeting different segments of the college student
population. The Grove® brand offers more traditional apartment
floor plans and focuses on customer service, privacy, on-site
amenities and a proprietary residence life program. The Copper
Beech brand and townhome product offers more residential-type
living to students looking for a larger floor plan with a front
door and back porch. The evo brand provides urban students with a
luxury student housing option with all the conveniences of city
living. Additional information can be found on the Company's
website at http://www.campuscrest.com/.
Forward-Looking Statements
This press release, together with other statements and
information publicly disseminated by Campus Crest, contains certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Campus Crest intends
such forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995 and includes this
statement for purposes of complying with these safe harbor
provisions. Forward-looking statements relate to expectations,
beliefs, projections, future plans and strategies, anticipated
events or trends and similar expressions concerning matters that
are not historical facts. In some cases, you can identify
forward-looking statements by the use of forward-looking
terminology such as “may,” “will,” “should,” “expects,” “intends,”
“plans,” “anticipates,” “believes,” “estimates,” “predicts” or
“potential” or the negative of these words and phrases or similar
words or phrases which are predictions of or indicate future events
or trends and which do not relate solely to historical matters. You
should not rely on forward-looking statements since they involve
known and unknown risks, uncertainties, assumptions and
contingencies, many of which are beyond Campus Crest’s control that
may cause actual results to differ significantly from those
expressed in any forward-looking statement. All forward-looking
statements reflect Campus Crest’s good faith beliefs, assumptions
and expectations, but they are not guarantees of future
performance. Furthermore, except as otherwise required by federal
securities laws, Campus Crest disclaims any obligation to publicly
update or revise any forward-looking statement to reflect changes
in underlying assumptions or factors, new information, data or
methods, future events or other changes. For a further discussion
of these and other factors that could cause Campus Crest future
results to differ materially from any forward-looking statements,
see the risk factors discussed in Campus Crest most recent Annual
Report on Form 10-K and in the prospectus supplement relating to
the offering referred to in this press release.
Campus Crest Communities, Inc.Thomas Nielsen, Investor
Relations704-496-2571
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