Campus Crest Communities, Inc. (NYSE: CCG) (the “Company”),
today announced results for the three and six months ended June 30,
2014.
Highlights
Second Quarter 2014
- Funds From Operations Adjusted (“FFOA”)
of $10.4 million, resulting in $0.16 per diluted share for the
second quarter of 2014
- Same store net operating income (“NOI”)
of $11.4 million at 90.1% occupancy and a 54.8% margin
- Achieved leasing results ahead of prior
year as of July 27, 2014. Leasing for all 69 operating properties
was 87.9% versus 85.8%, an increase of 210 bps from the same period
prior year and breaks down as follows:
- Leasing for the Company’s 41 Grove
operating properties was 86.2% compared to 82.3% the prior year –
390 basis points ahead
- Leasing for the Company’s 32
wholly-owned Grove assets was 89.1% versus 85.2% the prior year, an
increase of 390 basis points over the same period prior year
- Leasing for the Company’s 9 joint
venture Grove assets was 76.2% versus 72.7%, an increase of 350
basis points over the same period prior year.
- Leasing for the Company’s Copper Beech
Brand portfolio of 28 operating properties was 90.8% versus 91.8%,
a decrease from the same period prior year of 100 basis points.
- Driven mainly by three markets that are
absorbing more slowly than prior years
"We are pleased to have delivered stable second quarter
results," said Ted W. Rollins, Campus Crest CEO. "We believe our
continued focus on operations supports the success we have seen
year-to-date and will be instrumental in maximizing our value
potential. Our wholly-owned Grove portfolio has achieved the
highest level of pre-leasing activity in the Company's history at
this point in the cycle. We are acutely focused on the leasing
activity for our evo projects in Montreal and Philadelphia, as
their progress has fallen below expectations. We believe the
projects will see improvements in leasing over the remainder of the
third quarter, but are hesitant to quantify our expected initial
weighted average development yields given the current lack of
clarity at this point in time. To further strengthen our focus on
operations, we are slowing our forward development activity in 2015
to just four Grove projects - a full 60% reduction from current
year construction activity."
"Given our current leasing results in our evo projects and our
decision to reduce development activity, we are revising our 2014
guidance," said Donnie Bobbitt, Campus Crest CFO. "Our revised
guidance for fiscal year 2014 FFOA per fully diluted share is now
$0.66 to $0.68. Given the mid-year change in guidance, we are
providing one-time quarterly guidance of at least $0.16 per fully
diluted share for the third quarter 2014. This revision reflects
(i) lower expected initial weighted average development yields on
our projects in Montreal and Philadelphia; and (ii) a reduction in
development and construction fees associated with fewer projects
being delivered in 2015."
Financial Results for the Three and Six Months Ended June 30,
2014
For the three and six months ended June 30, 2014, Funds From
Operations (“FFO”) and FFOA are shown in the table below.
FFO/FFOA
Three Months Ended June 30,
Six Months Ended June 30,
Per share -
Per share -
Per share
Per share -
($mm, except per share)
2014
diluted
2013
diluted
2014
diluted
2013
diluted
FFO $ 10.7 $ 0.16 $ 12.8 $ 0.20 $ 22.7 $ 0.35 $ 20.9 $ 0.38
FFOA1 $ 10.4 $ 0.16 $ 12.2 $ 0.19 $ 21.3 $ 0.33 $ 20.6 $ 0.37
1 Includes eliminations for the
write-off of transaction costs and the fair value adjustments of
Copper Beech debt as reflected in the Q2 2014 Supplemental Analyst
Package.
A reconciliation of net income (loss) attributable to common
stockholders to FFO and to FFOA can be found at the end of this
release.
For the three months ended June 30, 2014, the Company reported
total revenues of $35.3 million and net income (loss) attributable
to common stockholders of ($3.5) million, compared to $36.5 million
and $2.8 million, respectively, in the same period in 2013. For the
six months ended June 30, 2014, the Company reported total revenues
of $67.3 million and net income (loss) attributable to common
stockholders of ($5.4) million, compared to $69.5 million and $3.8
million, respectively, in the same period in 2013.
Operating Results
For the three and six months ended June 30, 2014, results for
wholly-owned same store properties were as follows:
Same Store Results
Three Months Ended June 30, Six Months Ended June 30,
($mm)
2014 2013 Change
2014 2013 Change
Number of Assets 28 28 28 28 Number of Beds 14,920 14,920 14,920
14,920 Occupancy 90.1 % 92.5 % (240) bps 90.3 % 93.0 % (270) bps
Total Revenues $ 20.8 $ 21.5 (3.3 %) $ 41.8 $ 43.0 (2.8 %) NOI $
11.4 $ 12.1 (5.9 %) $ 22.9 $ 24.0 (4.4 %) NOI Margin 54.8 % 56.3 %
(150) bps 54.9 % 55.8 % (90) bps
NOI margin is calculated by dividing NOI for the period by total
student housing rental and services revenues for the period. A
reconciliation of net income (loss) attributable to common
stockholders to NOI can be found at the end of this release. In
addition, details regarding same store NOI and calculations thereof
may be found in the Supplemental Analyst Package located at
http://investors.campuscrest.com/.
Portfolio Information
As of June 30, 2014, the Company owned interests in 79
properties totaling approximately 43,256 beds across North America.
A summary of the leasing for the 2014/2015 academic year
follows:
2014/2015 Academic Year Leasing Summary 2014-2015
2013-2014 Rental Rate Property
Properties Unit Beds
Signed(1) %
Signed(1) % Change
Change Operating Wholly-Owned 32 6,400 17,476
15,569 89.1 % 14,884 85.2 % 3.9 % n/a HSRE Joint venture 9 1,870
5,148 3,923 76.2 % 3,742 72.7 % 3.5 %
n/a
Total Operating 41 8,270 22,624
19,492 86.2 % 18,626 82.3
% 3.9 % 1.0% - 2.0% Copper
Beech Portfolio 28 5,047 13,177
11,963 90.8 % 12,096 91.8
% (1.0 %) 0.0% - 1.0%
Total Operating Portfolio 69
13,317 35,801 31,455 87.9
% 30,722 85.8 %
2.1 % n/a
Total 2014 Deliveries 10 3,128
7,455 3,268 43.8 %
n/a n/a n/a
n/a Note: The redevelopment of the Company's 100%
owned property in Toledo, OH is excluded. 1 As of July 27, 2014 and
July 27, 2013, respectively.
Investment Activity
Development
The Company expects to deliver eight new development projects,
totaling 5,213 beds, for the 2014/2015 academic year, at a total
cost of approximately $384.9 million, $214.5 million of which is
the Company’s share of total development cost. The assets are
located a median of 0.3 miles from campuses of primary non-flagship
and flagship universities.
Redevelopment
The Company expects to deliver two redevelopment projects in its
Canadian joint venture, totaling 2,242 beds, for the 2014/2015
academic year, at a total cost of approximately $166.0 million,
$58.1 million of which is the Company’s share of total development
cost. The two assets are located in downtown Montréal, Québec and
serve over 120,000 students in the market.
Balance Sheet and Capital Markets
The Company proactively manages its balance sheet and looks to
opportunistically access capital to fund growth and maintain a
conservative capital structure.
As of June 30, 2014, the Company had $17.6 million of cash and
$5.7 million of restricted cash. Additionally, the Company had net
availability under its revolving credit facility of $84.1 million
as of June 30, 2014.
As of June 30, 2014, the Company had not sold any shares under
its $100.0 million At-the-Market common equity offering
program.
Dividends
On July 22, 2014, the Company announced that its Board of
Directors declared its third quarter 2014 common stock dividend of
$0.165 per share. Based on a closing price of $8.99 on July 21,
2014, the annualized dividend yield is 7.3%. The dividend is
payable on October 8, 2014 to stockholders of record as of
September 24, 2014.
The Board of Directors also declared a cash dividend of $0.50
per Series A Cumulative Redeemable Preferred Share for the third
quarter of 2014. The preferred share dividend is payable on October
15, 2014 to stockholders of record as of September 24, 2014.
2014 Earnings Guidance and Outlook
Based on management’s current estimates of market conditions and
future operating results, the Company revises its previous guidance
for fiscal year 2014 FFOA per fully diluted share to a new range of
$0.66 to $0.68. Further, we have assumed $0.16 for the low end
range for the third quarter. Our revised guidance reflects (i)
lower expected initial yields on our evo projects in Montreal and
Philadelphia and (ii) a reduction in development and construction
fees associated with fewer projects being delivered in 2015. As
previously disclosed, this assumes that the Company does not elect
to exercise purchase option one for the Copper Beech portfolio.
The Company's FFOA guidance excludes non-recurring and non-cash
items, such as any severance-related charges, the write-off of
deferred financing costs as a result of early payoff of financings,
potential impairments, transaction costs associated with the Copper
Beech investment and other acquisitions and the mark-to-market
adjustment of the Copper Beech debt. Additionally, it excludes the
potential impact of any asset dispositions or capital raises.
Conference Call Details
The Company will host a conference call on Thursday, July 31,
2014, at 9:00 a.m. (EST) to discuss the financial results.
The call can be accessed live over the phone by dialing
877-407-0789, or for international callers, 201-689-8562. A replay
will be available shortly after the call and can be accessed by
dialing 877-870-5176, or for international callers, 858-384-5517.
The pin number for the replay is 13585309. The replay will be
available until August 7, 2014.
Interested parties may also listen to a simultaneous webcast of
the conference call by logging onto the Company's website at
http://investors.campuscrest.com/. A recording of the call will
also be available on the Company's website following the call.
Supplemental Schedules
The Company has published a Supplemental Analyst Package in
order to provide additional disclosure and financial information
for the benefit of the Company’s stakeholders. These can be found
under the “Earnings Center” tab in the Investors section of the
Company’s web site at http://www.campuscrest.com/.
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 79 student housing properties and over 43,000 beds
across North America, of which 69 are operating and 10 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 the Company, 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. The Company 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.
Forward-looking statements in this press release include, among
others, the performance of properties in occupancy and yield
targets, outlook and guidance for full-year 2014 FFOA and the
related underlying assumptions, growth and development
opportunities, leasing activities, financing strategies, and
development and construction projects. You should not rely on
forward-looking statements since they involve known and unknown
risks, uncertainties, assumptions and contingencies, many of which
are beyond the Company’s control that may cause actual results to
differ significantly from those expressed in any forward-looking
statement. All forward-looking statements reflect the Company’s
good faith beliefs, assumptions and expectations, but they are not
guarantees of future performance. Furthermore, except as otherwise
required by federal securities laws, the Company 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 the Company’s future results to differ materially from any
forward-looking statements, see the risk factors discussed in the
Company’s most recent Annual Report on Form 10-K, as updated in the
Company’s Quarterly Reports on Form 10-Q.
CAMPUS CREST COMMUNITIES
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in
$000s) June 30, December 31,
2014 2013
Assets Investment in real estate, net: Student
housing properties $ 743,882 $ 716,285 Accumulated depreciation
(114,607 ) (102,356 ) Development in process 163,433
91,184 Investment in real estate, net 792,708 705,113
Investment in unconsolidated entities1 370,538 324,838 Cash and
cash equivalents 17,601 32,054 Restricted cash 2 5,652 32,636
Student receivables, net 2,828 2,825 Notes receivable - Cost and
earnings in excess of construction billings 23,861 42,803 Other
assets, net 59,448 42,410
Total
assets $ 1,272,636 $ 1,182,679
Liabilities and equity Liabilities: Mortgage and
construction loans $ 241,134 $ 205,531 Line of credit and other
debt 285,030 207,952 Accounts payable and accrued expenses 62,569
62,448 Construction billings in excess of cost and earnings 368 600
Other liabilities 13,625 11,167 Total
liabilities 602,726 487,698 Equity:
Preferred stock $ 61 $ 61 Common stock 645 645 Additional common
and preferred paid-in capital 775,525 773,896 Accumulated deficit
and distributions (110,921 ) (84,143 ) Accumulated other
comprehensive loss 152 (71 ) Total
stockholders' equity 665,462 690,388 Noncontrolling interests
4,448 4,593 Total equity 669,910
694,981
Total liabilities and equity $
1,272,636 $ 1,182,679
1 As of June 30, 2014, March 31, 2014 and December 31, 2013,
includes the Company’s investment in Copper Beech equating to a 67%
effective ownership interest in 30 properties, of which 28 are
operating and two are non-operating properties. 2 As of June
30, 2014, March 31, 2014 and December 31, 2013, includes
approximately $0, $15,600 and $28,200, respectively, of cash held
in escrow from the sale of four wholly-owned Grove-branded student
housing properties on December 27, 2013.
CAMPUS CREST
COMMUNITIES CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in $000s,
except per share data) Three Months
Ended June 30, Six Months Ended June 30,
2014 2013 $
Change 2014 2013
$ Change Revenues:
Student housing rental $ 23,637 $ 21,205 $ 2,432 $ 47,272 $ 41,953
$ 5,319 Student housing services 1,026 953 73 1,999 1,777 222
Development, construction and management services 10,622
14,368 (3,746 ) 18,058
25,795 (7,737 )
Total revenues 35,285
36,526 (1,241 ) 67,329 69,525 (2,196 )
Operating expenses:
Student housing operations 10,747 9,822 925 21,360 19,512 1,848
Development, construction and management services 8,920 13,657
(4,737 ) 15,315 24,315 (9,000 ) General and administrative 3,649
2,908 741 7,155 5,559 1,596 Transaction costs1 1,460 203 1,257
2,045 588 1,457 Ground leases 120 54 66 237 108 129 Depreciation
and amortization 7,254 5,894
1,360 14,233 11,572 2,661
Total operating expenses 32,150 32,538 (388 ) 60,345
61,654 (1,309 ) Equity in earnings (loss) of unconsolidated
entities2, 3 (891 ) 1,896 (2,787 )
(572 ) 2,306 (2,878 )
Operating
income 2,244 5,884 (3,640 )
6,412 10,177 (3,765 )
Nonoperating income (expense): Interest expense, net (2,950
) (2,789 ) (161 ) (6,326 ) (5,673 ) (653 ) Other income4 104
689 (585 ) 170 725
(555 )
Total nonoperating expense, net
(2,846 ) (2,100 ) (746 ) (6,156 )
(4,948 ) (1,208 )
Net income before income tax benefit
(expense) (602 ) 3,784 (4,386 ) 256 5,229 (4,973 ) Income tax
benefit 210 (106 ) 316
400 346 54
Income from
continuing operations (392 ) 3,678 (4,070 ) 656 5,575 (4,919 )
Income (loss) from discontinued operations -
262 (262 ) - 532
(532 )
Net income (392 ) 3,940 (4,332 ) 656 6,107 (5,451 )
Dividends on preferred stock 3,050 1,150 1,900 6,100 2,300 3,800
Net income (loss) attributable to noncontrolling interests
12 19 (7 ) (3 ) 30
(33 )
Net income (loss) attributable to common
stockholders ($3,454 ) $ 2,771 ($6,225 )
($5,441 ) $ 3,777 ($9,218 )
Net
income (loss) per share attributable to common stockholders - Basic
and Diluted: ($0.05 ) $ 0.04 ($0.08 ) $ 0.07
Weighted
average common shares outstanding: Basic 64,681 64,512
64,588 55,382
Diluted 65,115 64,948 65,022 55,818
1 For the three and six months ended June 30,
2014, includes $1,460 and $2,045, respectively, of transaction
costs related to Copper Beech, the Montreal investments and other
transaction costs. Additionally, for the three and six months ended
June 30, 2013, includes $203 and $588, respectively, of transaction
costs related to Copper Beech. 2 For the three and six
months ended June 30, 2014 and the period from March 18, 2013 to
June 30, 2013, includes results from the Company’s investment in
Copper Beech. The Company made its initial investment on March 18,
2013 and subsequently made additional investments. On September 30,
2013, the Company entered into an amendment to the purchase and
sale agreement that, subject to receipt of required third-party
lender consents, enabled the Company to acquire a 67% ownership
interest in 30 properties, while deferring ownership in seven
properties until the Company exercises future purchase options. As
of June 30, 2014, the Company held a 67% effective interest in 28
operating and two non-operating properties. 3 For the
three and six months ended June 30, 2014, includes $1,765 and
$3,519, respectively, of fair value adjustment related to Copper
Beech's debt. For the three and six months ended June 30, 2013,
includes $833 and $945, respectively, of fair value adjustment
related to Copper Beech's debt. 4 For the three and six
months ended June 30, 2013, includes interest income from the 8.5%,
$31,700 loan made to existing investors in Copper Beech on March
18, 2013. In conjunction with the September 30, 2013 amendment to
the purchase and sale agreement, the $31,700 loan was repaid by
Copper Beech.
CAMPUS CREST COMMUNITIES
RECONCILIATION OF NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS TO FUNDS FROM OPERATIONS
("FFO"), FUNDS FROM OPERATIONS ADJUSTED ("FFOA") & NET
OPERATING INCOME ("NOI") (unaudited) (in $000s, except per
share data) Three Months Ended June
30, Six Months Ended June 30, 2014
2013
$ Change
2014 2013
$ Change
Net income (loss) attributable to common stockholders
($3,454 ) $ 2,771 ($6,225 ) ($5,441 ) $ 3,777 ($9,218 ) Net
income (loss) attributable to noncontrolling interests 12 19 (7 )
(3 ) 30 (33 ) Real estate related depreciation and amortization
6,908 5,646 1,262 13,585 11,181 2,404 Real estate related
depreciation and amortization - discontinued operations - 764 (764
) - 1,525 (1,525 ) Real estate related depreciation and
amortization - unconsolidated entities 7,264
3,624 3,640 14,597 4,431
10,166
FFO available to common shares and
OP units1, 2, 3
10,730 12,824 (2,094
) 22,738 20,944 1,794 Elimination of
transactions costs 1,460 203 1,257 2,045 588 1,457 Elimination of
FV adjustment of CB debt (1,765 ) (833 ) (932
) (3,519 ) (945 ) (2,574 )
Funds from
operations adjusted (FFOA) available to common shares and OP
units $ 10,425 $ 12,194
($1,769 ) $ 21,264
$ 20,587 $ 677 FFO
per share - diluted1, 2, 3 $ 0.16 $ 0.20 ($0.04 ) $ 0.35 $ 0.38
($0.03 ) FFOA per share - diluted $ 0.16 $ 0.19 ($0.03 ) $ 0.33 $
0.37 ($0.04 ) Weighted average common shares and OP units
outstanding - diluted 65,115 64,948 65,022 55,818
Three Months Ended June 30,
Six Months Ended June 30,
20141
20131
20141
20131
Net income (Loss) attributable to common
stockholders ($3,454 ) $ 2,771 ($5,441 ) $ 3,777 Net income (Loss)
attributable to noncontrolling interests 12 19 (3 ) 30 Preferred
stock dividends 3,050 1,150 6,100 2,300 Income tax benefit
(expense) (210 ) 106 (400 ) (346 ) Other income (expense) (104 )
(689 ) (170 ) (725 ) (Income) loss on discontinued operations -
(262 ) - (532 ) Interest expense 2,950 2,789 6,326 5,673 Equity in
earnings of unconsolidated entities 891 (1,896 ) 572 (2,306 )
Depreciation and amortization 7,254 5,894 14,233 11,572 Ground
lease expense 120 54 237 108 General and administrative expense
3,649 2,908 7,155 5,559 Transaction costs 1,460 203 2,045 588
Development, construction and management services expenses 8,920
13,657 15,315 24,315 Development, construction and management
services revenues (10,622 ) (14,368 ) (18,058
) (25,795 )
Total NOI $ 13,916
$ 12,336 $ 27,911
$ 24,218 Same store properties NOI4 $ 11,393 $
12,109 $ 22,937 $ 23,988 New properties NOI4 $ 1,770 $ 0 $ 3,552 $
0 The Grove at Pullman & Toledo NOI5 $ 753 $ 227 $ 1,422 $ 230
1 For the three and six months ended
June 30, 2014 and the period March 18, 2013 to June 30, 2013,
includes results from the Company’s investment in Copper Beech. The
Company made its initial investment on March 18, 2013 and
subsequently made additional investments. On September 30, 2013,
the Company entered into an amendment to the purchase and sale
agreement that, subject to receipt of required third-party lender
consents, enabled the Company to acquire a 67% ownership interest
in 30 properties, while deferring ownership in seven properties
until the Company exercises future purchase options. As of June 30,
2014, the Company held a 67% effective interest in 28 operating and
two non-operating properties. 2 For the three and six months ended
June 30, 2014, includes $1,460 and $2,045, respectively, of
transaction costs related to Copper Beech, the Montreal investments
and other transaction costs. Additionally, for the three and six
months ended June 30, 2013, includes $203 and $588, respectively,
of transaction costs related to Copper Beech. 3 For the three and
six months ended June 30, 2014, includes $1,765 and $3,519,
respectively, of fair value adjustment related to Copper Beech's
debt. For the three and six months ended June 30, 2013, includes
$833 and $945, respectively, of fair value adjustment related to
Copper Beech's debt. 4 "Same store" properties are our wholly-owned
operating properties acquired or placed in-service prior to the
beginning of the earliest period presented and owned by us and
remaining in service through the end of the latest period presented
or period being analyzed. "New properties" are our wholly-owned
operating properties that we acquired or placed in service after
the beginning of the earliest period presented or period being
analyzed. 5 Includes NOI contribution from the operations of The
Grove at Pullman and the Toledo, OH redevelopment, as well as
business interruption insurance proceeds from The Grove at Pullman.
Non-GAAP Financial Measures
FFO and FFOA
FFO is a non-GAAP financial measure. We calculate FFO in
accordance with the definition that was adopted by the Board of
Governors of NAREIT. FFO, as defined by NAREIT, represents net
income (loss) determined in accordance with U.S. GAAP, excluding
extraordinary items as defined under GAAP and gains or losses from
sales of previously depreciated operating real estate assets, plus
specified non-cash items, such as real estate asset depreciation
and amortization, and after adjustments for unconsolidated
partnerships and joint ventures. In addition, in October 2011,
NAREIT communicated to its members that the exclusion of impairment
write-downs of depreciable real estate is consistent with the
definition of FFO.
We use FFO as a supplemental performance measure because, in
excluding real estate-related depreciation and amortization and
gains and losses from property dispositions, it provides a
performance measure that, when compared year over year, captures
trends in occupancy rates, rental rates and operating expenses. We
also believe that, as a widely recognized measure of the
performance of equity REITs, FFO will be used by investors as a
basis to compare our operating performance with that of other
REITs. However, because FFO excludes depreciation and amortization
and captures neither the changes in the value of our properties
that result from use or market conditions nor the level of capital
expenditures necessary to maintain the operating performance of our
properties, all of which have real economic effects and could
materially and adversely impact our results of operations, the
utility of FFO as a measure of our performance is limited.
While FFO is a relevant and widely used measure of operating
performance of equity REITs, other equity REITs may use different
methodologies for calculating FFO and, accordingly, FFO as
disclosed by such other REITs may not be comparable to FFO
published herein. Therefore, we believe that in order to facilitate
a clear understanding of our historical operating results, FFO
should be examined in conjunction with net income (loss) (computed
in accordance with U.S. GAAP) as presented in the consolidated
financial statements included elsewhere in this document. FFO
should not be considered as an alternative to net income (loss)
(computed in accordance with U.S. GAAP) as an indicator of our
properties’ financial performance or to cash flow from operating
activities (computed in accordance with U.S. GAAP) as an indicator
of our liquidity, nor is it indicative of funds available to fund
our cash needs, including our ability to pay dividends or make
distributions.
FFOA is a non-GAAP financial measure. In addition to FFO, we
believe it is also a meaningful measure of our performance to
adjust FFO to exclude the write-off of unamortized deferred
financing fees, transaction costs, the write-off of development
cost and fair value debt adjustments on equity method investments.
Excluding the write-off of unamortized deferred financing fees,
transaction costs the write-off of development costs, and fair
value debt adjustments on equity method investments adjusts FFO to
be more reflective of operating results prior to capital
replacement or expansion, debt service obligations or other
commitments and contingencies.
NOI
NOI is a non-GAAP financial measure. We calculate NOI by adding
back (or subtracting from) to net income (loss) attributable to
common stockholders the following expenses or charges: income tax
expense, interest expense, equity in loss of unconsolidated
entities, preferred stock dividends, depreciation and amortization,
transaction costs, ground lease expense, general and administrative
expense and development, construction and management services
expense. The following income or gains are then deducted from net
income (loss) attributable to common stockholders, adjusted for add
backs of expenses or charges: equity in earnings of unconsolidated
entities, income tax benefit, other income, and development,
construction and management services revenue. We believe these
adjustments help provide a performance measure, when compared year
over year, that illustrates the operating results of our
wholly-owned properties and captures trends in student housing
rental and services income and student housing operating
expenses.
NOI excludes multiple components of net income (loss) (computed
in accordance with U.S. GAAP) and captures neither the changes in
the value of our properties that result from use or market
conditions nor the level of capital expenditures necessary to
maintain the operating performance of our properties, all of which
have real economic effects and could materially and adversely
impact our results of operations. Therefore, the utility of NOI as
a measure of our performance is limited. Additionally, other
companies, including other equity REITs, may use different
methodologies for calculating NOI and, accordingly, NOI as
disclosed by such other companies may not be comparable to NOI
published herein. Therefore, we believe that in order to facilitate
a clear understanding of our historical operating results, NOI
should be examined in conjunction with net income (loss) (computed
in accordance with U.S. GAAP) as presented in the consolidated
financial statements included elsewhere in this document. NOI
should not be considered as an alternative to net income (loss)
(computed in accordance with U.S. GAAP) as an indicator of our
properties’ financial performance or to cash flow from operating
activities (computed in accordance with U.S. GAAP) as an indicator
of our liquidity, nor is it indicative of funds available to fund
our cash needs, including our ability to pay dividends or make
distributions.
Campus Crest Communities, Inc.Jessica Martino, Investor
Relations, 704-496-2571Investor.Relations@CampusCrest.com
Lehman Abs Mbna Capa (NYSE:CCG)
Historical Stock Chart
From May 2024 to Jun 2024
Lehman Abs Mbna Capa (NYSE:CCG)
Historical Stock Chart
From Jun 2023 to Jun 2024