CHARLOTTE, N.C., May 20, 2015 /PRNewswire/ -- Campus Crest
Communities, Inc. (NYSE: CCG) (the "Company" or "Campus Crest"), an
owner and manager of high-quality student housing properties, today
provided an update on its current 2015/2016 academic year
pre-leasing results. The following table highlights the leasing
status as of May 18, 2015:
Pre-leasing
Update
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Pre-leasing as of
May 18,
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Properties
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Beds
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AY
'14/'15
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AY
'15/'16
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Change
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Same Store
Properties by Occupancy
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Tier 1
(98%+)
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35
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16,531
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87.0%
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84.4%
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(2.6%)
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Tier 2 (95% to
97.9%)
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7
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4,080
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78.9%
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64.7%
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(14.2%)
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Tier 3 (90% to
94.9%)
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7
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3,776
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65.8%
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73.4%
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7.6%
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Tier 4 (Below
90%)
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22
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12,143
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59.5%
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60.9%
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1.4%
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Total Same Store
Properties
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71
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36,530
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74.8%
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73.3%
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(1.5%)
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Same Store
Properties By Ownership
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Wholly
Owned
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32
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17,476
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73.9%
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71.5%
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(2.4%)
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Joint
Venture
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6
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3,532
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59.1%
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60.9%
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1.8%
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Copper
Beech
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33
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15,522
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79.3%
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78.1%
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(1.2%)
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Total Same Store
Properties
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71
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36,530
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74.8%
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73.3%
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(1.5%)
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2014 Deliveries By
Type
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Grove & Copper
Beech
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7
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4,339
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48.3%
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66.0%
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17.7%
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evo
Philadelphia
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1
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850
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24.5%
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89.5%
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65.0%
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evo
Montreal
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2
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2,223
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1.3%
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14.6%
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13.3%
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Total 2014
Deliveries
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10
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7,412
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31.5%
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53.3%
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21.8%
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2014 Deliveries By
Ownership
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Wholly
Owned
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5
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3,099
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50.7%
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71.7%
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21.0%
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Joint
Venture
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5
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4,313
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17.6%
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40.1%
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22.5%
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Total 2014
Deliveries
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10
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7,412
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31.5%
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53.3%
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21.8%
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Total Portfolio By
Ownership
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Wholly
Owned
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37
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20,575
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70.4%
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71.5%
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1.1%
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Copper
Beech
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33
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15,522
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79.3%
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78.1%
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(1.2%)
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Joint
Venture
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11
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7,845
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36.3%
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49.4%
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13.1%
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Total
Portfolio
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81
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43,942
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67.5%
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69.9%
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2.4%
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"Pre-leasing for the Company's total portfolio for the 2015/2016
academic year is up by approximately 240 basis points, driven by
strong growth from the 2014 new deliveries, while the Company's
same store portfolio pre-leasing currently trails prior year's
results," noted Aaron Halfacre,
President and Chief Investment Officer. "We have positive momentum
as the majority of our portfolio is trending above last year's
results, however, we are experiencing difficulties in select
markets. Specifically, Statesboro,
GA and Mt. Pleasant, MI are
experiencing negative leasing velocity following increased market
supply; Grand Forks, ND will
likely lease materially below the current academic year following a
construction-delayed 2014 opening and management turnover; and,
Copper Beech at Columbia, SC is
expected to finish materially behind last academic year's results
as it continues to recover from the negative impact stemming from
an isolated crime that occurred on the property last November.
Excluding these select markets, total portfolio and same store
pre-leasing results would be up approximately 550 and 110 basis
points, respectively. I commend our student housing team for
avoiding distractions and focusing on execution during this
critical time."
"Overall, we expect to achieve between 75 and 100 basis points
of year-over-year rate improvement for the 2015/2016 academic year.
In addition, ongoing initiatives to improve our tenant profile and
strengthen collections have proven successful as 2014/2015 bad debt
expense is at or below the Company's 2.5% budgeted levels and,
accordingly, we do not currently anticipate bad debt write-offs
related to the 2014/2015 academic year," concluded Mr.
Halfacre.
Timing of First Quarter 10-Q Filing
As previously disclosed in its Form 12b-25 filing with the
Securities and Exchange Commission ("SEC"), Campus Crest is unable
to timely file its first quarter 2015 Quarterly Report on Form 10-Q
primarily due to the complexity of consolidating the Copper Beech
operations that were acquired during the first quarter. Campus
Crest expects to file its Quarterly Report on Form 10-Q as quickly
as practicable, but will not meet the previously communicated
target date of May 29, 2015 for an
earnings release. Due to the delayed filing, the Company also noted
that it is in a quiet period and, as a result, will not be
attending NAREIT's REITWEEK 2015® Conference.
Campus Crest has informed the New York Stock Exchange (the
"NYSE") of the filing delay. The NYSE has provided formal
notification to the Company that it is not currently in compliance
with the NYSE's continued listing requirements under the timely
filing criteria set forth in Section 802.01E of the NYSE Listed
Company Manual, which are routinely issued by the NYSE in
situations when there are late filings with the SEC.
If Campus Crest does not file its Quarterly Report on Form 10-Q
by 2:30 pm Eastern Time on
May 22, 2015, its common stock, which
is listed on the NYSE under the symbol "CCG," will be assigned an
"LF" indicator to signify late filing status. Under NYSE rules, the
Company has six months from May 18,
2015, subject to ongoing evaluation, to file its Quarterly
Report on Form 10-Q. Campus Crest
can regain compliance with the NYSE listing standards at any time
during this six-month period once it files its Form 10-Q with the
SEC. If it fails to file its Quarterly Report on Form 10-Q within
such six-month period, the NYSE may, in its sole discretion, allow
Campus Crest's common stock to trade for up to an additional six
months depending on specific circumstances as outlined in the NYSE
rules. It is expected that the Company would need to submit an
official request to the NYSE for the NYSE's consideration at the
appropriate time.
While the Company is working diligently to complete its first
quarter 2015 Quarterly Report on Form 10-Q and expects to complete
the filing within the six months compliance period, no assurance
can be given that the first quarter 2015 Quarterly Report on Form
10-Q will be filed within such period, or that the NYSE would allow
the Company's securities to trade for up to an additional six
months.
About Campus Crest Communities, Inc.
Campus Crest Communities, Inc. is a leading owner and manager of
high-quality student housing properties located close to college
campuses in targeted markets. It has ownership interests in 82
student housing properties with over 44,000 beds across
North America. 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. 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.
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SOURCE Campus Crest Communities, Inc.