CHARLOTTE, N.C., July 16, 2015 /PRNewswire/ -- Campus Crest
Communities, Inc. (NYSE: CCG) (the "Company" or "Campus Crest"), an
owner and manager of high-quality student housing properties, today
announced results for the three months ended March 31, 2015.
"We have successfully concluded the financial consolidation of
the Copper Beech acquisition and look forward to returning to a
more normalized reporting cycle," stated David Coles, Interim Chief Executive Officer.
"We remain focused on our previously stated goals of reducing
financial statement complexity and improving operational focus. We
thank our stakeholders for their patience and continued support as
we execute on our goal of maximizing shareholder value."
"Our property results remain solid with pre-leasing for the
Company's total portfolio for the 2015/2016 academic year up by
approximately 280 basis points accompanied by a currently
anticipated 75 basis point improvement in overall rate," noted
Aaron Halfacre, President and Chief
Investment Officer. "We look forward to providing investors with a
corporate update on our scheduled conference call."
Property Leasing Results for Academic Year 2015/2016
The following tables highlight the leasing activity for the
2015/2016 academic year as of July, 13, 2015:
Pre-leasing
Update
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-leasing as of
July 13,
|
|
|
|
|
Properties
|
|
Beds
|
|
AY
'14/'15
|
|
AY
'15/'16
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Same Store
Properties by Occupancy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1
(98%+)
|
|
35
|
|
16,531
|
|
95.7%
|
|
92.2%
|
|
(3.5%)
|
Tier 2 (95% to
97.9%)
|
|
7
|
|
4,080
|
|
90.0%
|
|
74.8%
|
|
(15.2%)
|
Tier 3 (90% to
94.9%)
|
|
7
|
|
3,776
|
|
80.8%
|
|
88.7%
|
|
7.9%
|
Tier 4 (Below
90%)
|
|
22
|
|
12,143
|
|
71.0%
|
|
74.5%
|
|
3.5%
|
|
|
|
|
|
|
|
|
|
|
|
Total Same Store
Properties
|
|
71
|
|
36,530
|
|
85.3%
|
|
84.0%
|
|
(1.3%)
|
|
|
|
|
|
|
|
|
|
|
|
Same Store
Properties By Ownership
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholly
Owned
|
|
61
|
|
28,995
|
|
85.9%
|
|
84.5%
|
|
(1.4%)
|
Joint
Venture
|
|
10
|
|
7,535
|
|
83.2%
|
|
82.3%
|
|
(0.9%)
|
|
|
|
|
|
|
|
|
|
|
|
Total Same Store
Properties
|
|
71
|
|
36,530
|
|
85.3%
|
|
84.0%
|
|
(1.3%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 Deliveries By
Type
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grove & Copper
Beech
|
|
7
|
|
4,345
|
|
59.8%
|
|
74.4%
|
|
14.6%
|
evo
Philadelphia
|
|
1
|
|
850
|
|
35.6%
|
|
96.4%
|
|
60.8%
|
evo
Montreal
|
|
2
|
|
2,223
|
|
2.4%
|
|
27.0%
|
|
24.6%
|
|
|
|
|
|
|
|
|
|
|
|
Total 2014
Deliveries
|
|
10
|
|
7,418
|
|
39.9%
|
|
62.7%
|
|
22.8%
|
|
|
|
|
|
|
|
|
|
|
|
2014 Deliveries By
Ownership
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholly
Owned
|
|
5
|
|
3,105
|
|
64.7%
|
|
79.8%
|
|
15.1%
|
Joint
Venture
|
|
5
|
|
4,313
|
|
22.0%
|
|
50.4%
|
|
28.4%
|
|
|
|
|
|
|
|
|
|
|
|
Total 2014
Deliveries
|
|
10
|
|
7,418
|
|
39.9%
|
|
62.7%
|
|
22.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Portfolio By
Ownership
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholly
Owned
|
|
66
|
|
32,100
|
|
83.8%
|
|
84.0%
|
|
0.2%
|
Joint
Venture
|
|
15
|
|
11,848
|
|
60.9%
|
|
70.7%
|
|
9.8%
|
|
|
|
|
|
|
|
|
|
|
|
Total
Portfolio
|
|
81
|
|
43,948
|
|
77.6%
|
|
80.4%
|
|
2.8%
|
Financial Highlights for the Three Months Ended March 31, 2015
The first quarter 2015 results presented in the accompanying
Supplemental Analyst Package reflect the consolidation of assets
acquired in the Copper Beech transaction, the initial closing of
which occurred on January 30, 2015.
For the three months ended March 31,
2015, revenue, revenue per occupied bed, net operating
income ("NOI") and Funds From Operations Adjusted ("FFOA") are
shown in the table below.
Financial
Highlights
|
|
|
|
|
|
|
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|
|
Three Months Ended
March 31,
|
|
($'000, except per
share/bed data)
|
|
2015
|
|
2014
|
|
Change
|
|
|
|
|
|
|
|
|
|
Total
Revenues
|
|
$40,329
|
|
$24,711
|
|
63.2%
|
|
Total RevPoB (wholly
owned Grove)
|
|
549
|
|
526
|
|
4.4%
|
|
Total RevPoB (wholly
owned Copper Beech)
|
|
473
|
|
473
|
|
-
|
|
NOI
|
|
22,896
|
|
13,995
|
|
63.6%
|
|
FFOA
|
|
6,313
|
|
9,916
|
|
(36.3%)
|
|
FFOA per
Share
|
|
$0.10
|
|
$0.15
|
|
(33.3%)
|
|
A reconciliation of the net income attributable to common
stockholders to FFOA can be found at the end of this release.
The consolidation of the Copper Beech acquisition, along with
continued activities of the strategic repositioning, produced
results for the three months ended March 31,
2015, that do not allow for normal, run-rate
characterization.
Balance Sheet
As of March 31, 2015, the Company
held cash and cash equivalents totaling $35.3 million and $8.0
million of restricted cash. Borrowing capacity under the
Company's credit facility was $36.5
million.
Dividends
As previously announced on April 1,
2015, the Company does not anticipate declaring any dividend
payments for 2015, and the Company currently does not intend to
make distributions to common stockholders in 2015 at this time.
Additionally, the Series A Cumulative Redeemable Preferred
Shares dividend remains suspended. However, dividends on the Series
A Preferred Stock will accumulate at the effective annual rate of
$2.00 per share until paid.
Update on Strategic Review Process
The Company will be providing an update on corporate activities,
including the current status of developments concerning the
Company's strategic review process, and to discuss the financial
results from first quarter, on a conference call being held today,
Thursday, July 16, 2015 at
9:00 a.m. (EST).
Conference Call
Details
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 13614370. The replay will be
available until July 23, 2015.
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.
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 43,000 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.
CAMPUS CREST
COMMUNITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (unaudited)
|
(in
$000s)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
Assets
|
|
|
|
|
Investment in real
estate, net:
|
|
|
|
|
|
Student housing
properties1
|
|
$1,506,297
|
|
$935,962
|
|
Accumulated
depreciation
|
|
(138,830)
|
|
(128,121)
|
|
Land and properties
held for sale2
|
|
13,588
|
|
37,163
|
|
Land held for
investment2
|
|
7,413
|
|
7,413
|
Investment in real
estate, net
|
|
1,388,468
|
|
852,417
|
Investment in
unconsolidated entities1
|
|
93,783
|
|
259,740
|
Cash and cash
equivalents
|
|
35,260
|
|
15,240
|
Restricted
cash3
|
|
8,045
|
|
5,429
|
Student receivables,
net
|
|
2,857
|
|
1,587
|
Cost and earnings in
excess of construction billings
|
|
618
|
|
3,887
|
Intangible assets,
net4
|
|
21,030
|
|
-
|
Other
assets
|
|
30,200
|
|
35,742
|
Total
assets
|
|
$1,580,261
|
|
$1,174,042
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
Mortgage and
construction loans
|
|
$566,495
|
|
$300,673
|
|
Line of credit and
other debt
|
|
367,976
|
|
317,746
|
|
Accounts payable and
accrued expenses
|
|
36,562
|
|
53,816
|
|
Construction billings
in excess of cost and earnings
|
|
-
|
|
481
|
|
Other
liabilities
|
|
43,121
|
|
22,092
|
Total
liabilities
|
|
1,014,154
|
|
694,808
|
Equity:
|
|
|
|
|
|
Preferred
stock
|
|
$61
|
|
$61
|
|
Common
stock
|
|
648
|
|
648
|
|
Additional common and
preferred paid-in capital
|
|
780,665
|
|
773,998
|
|
Accumulated deficit
and distributions
|
|
(288,726)
|
|
(301,566)
|
|
Accumulated other
comprehensive loss
|
|
(3,174)
|
|
(2,616)
|
Total stockholders'
equity
|
|
489,474
|
|
470,525
|
Noncontrolling
interests
|
|
76,633
|
|
8,709
|
Total
equity
|
|
566,107
|
|
479,234
|
Total liabilities
and equity
|
|
$1,580,261
|
|
$1,174,042
|
|
|
1As of
March 31, 2015, the Company's 100% interest in 26 Copper Beech
properties, pursuant to the initial closing of the Copper Beech
transaction in January 2015, is included in "Student housing
properties." In prior periods, the Company's investment in these
properties was included in "Investment in unconsolidated
entities".
2As of
March 31, 2015, the Company owned five strategically held land
parcels that could be used for the development of four phase two
properties and one additional property, with an aggregate bed count
ranging from approximately 1,000 to 1,500, and five land parcels
which the Company intends to divest. The costs associated with the
strategically held parcels are included in land held for
investment.
3Restricted cash includes escrow accounts
held by lenders for the purpose of paying taxes, insurance and
funding capital improvements.
4Includes
in-place leases from the Copper Beech transaction and the trademark
for the Copper Beech brand name.
|
CAMPUS CREST
COMMUNITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
|
|
(in $000s, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
2015
|
|
2014
|
|
$
Change
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Student housing
rental
|
|
$38,790
|
|
$23,635
|
|
$15,155
|
|
Student housing
services
|
|
1,310
|
|
973
|
|
337
|
|
Property management
services
|
|
229
|
|
103
|
|
126
|
|
Total
revenues
|
|
|
40,329
|
|
24,711
|
|
15,618
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Student housing
operations
|
|
17,204
|
|
10,613
|
|
6,591
|
|
General and
administrative
|
|
8,038
|
|
3,506
|
|
4,532
|
|
Severance1
|
|
508
|
|
-
|
|
508
|
|
Write-off of other
assets
|
|
769
|
|
-
|
|
769
|
|
Transaction
costs2
|
|
1,492
|
|
585
|
|
907
|
|
Ground
leases
|
|
120
|
|
117
|
|
3
|
|
Depreciation and
amortization
|
|
19,756
|
|
6,980
|
|
12,776
|
|
Total operating
expenses
|
|
47,887
|
|
21,801
|
|
26,086
|
|
Equity in earnings
(loss) of unconsolidated entities3,4
|
|
(2,149)
|
|
319
|
|
(2,467)
|
|
Operating income
(loss)
|
|
(9,707)
|
|
3,229
|
|
(12,936)
|
|
Nonoperating
income (expense):
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
(7,788)
|
|
(3,376)
|
|
(4,412)
|
|
Gain on purchase of
Copper Beech5
|
|
21,642
|
|
-
|
|
21,642
|
|
Gain on sale of
assets6
|
|
7,748
|
|
-
|
|
7,748
|
|
Other income
(expense)
|
|
(55)
|
|
66
|
|
(121)
|
|
Total nonoperating
expense, net
|
|
21,547
|
|
(3,310)
|
|
24,857
|
|
Net income (loss)
before income tax benefit (expense)
|
11,840
|
|
(81)
|
|
11,921
|
|
Income tax benefit
(expense)
|
|
-
|
|
190
|
|
(190)
|
|
Income (loss) from
continuing operations
|
|
11,840
|
|
109
|
|
11,731
|
|
Income (loss) from
discontinued operations7
|
|
(1,157)
|
|
939
|
|
(2,096)
|
|
Net income
(loss)
|
|
|
10,683
|
|
1,048
|
|
9,635
|
|
Less: Dividends on
preferred stock
|
|
3,050
|
|
3,050
|
|
-
|
|
Less: Net loss
attributable to noncontrolling interests
|
|
(2,157)
|
|
(15)
|
|
(2,142)
|
|
Net income (loss)
attributable to common stockholders
|
|
$9,790
|
|
($1,987)
|
|
$11,777
|
|
|
|
|
|
|
|
|
|
|
Per share data -
basic
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to common
stockholders
|
|
$0.17
|
|
($0.04)
|
|
|
|
Income (loss) from
discontinued operations attributable to common
stockholders
|
|
($0.02)
|
|
$0.01
|
|
|
|
Net income (loss)
per share attributable to common stockholders
|
|
$0.15
|
|
($0.03)
|
|
|
|
|
|
|
|
|
|
|
|
Per share data -
diluted8
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to common
stockholders
|
|
$0.15
|
|
($0.04)
|
|
|
|
Income (loss) from
discontinued operations attributable to common
stockholders
|
|
($0.01)
|
|
$0.01
|
|
|
|
Net income (loss)
per share attributable to common stockholders
|
|
$0.14
|
|
($0.03)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
64,720
|
|
64,495
|
|
|
|
Diluted
|
|
|
78,686
|
|
64,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1For the
three months ended March 31, 2015, severance includes termination
benefits for former executives in connection with the Company's
strategic repositioning.
2For the
three months ended March 31, 2015 and 2014, includes $1,492 and
$585, respectively, of transaction costs in connection with Copper
Beech and CSH Montreal including our proportional share of costs
incurred within the ventures.
3For the
three months ended March 31, 2015 and 2014, includes results from
the Company's investment in Copper Beech. The Company made its
initial investment in Copper Beech 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 enabled the Company to acquire a 67% ownership
interest in 28 operating properties, while deferring ownership in 7
properties until the Company exercises future purchase options. On
August 18, 2014, the Company elected to not exercise the first
purchase option and reverted to a 48% interest ownership interest
in 35 operating properties. On January 30, 2015, the Company
completed the initial closing of the Copper Beech transaction. As
of March 31, 2015, the Company held a 100% interest in 26 Copper
Beech properties and partial interest in 9 Copper Beech
properties.
4For the
three months ended March 31, 2015, $1,800 equity in losses of
unconsolidated entities were contributed from the Montreal
operations.
5For the
three months ended March 31, 2015, a gain of $21,642 was recognized
in connection with the purchase of the First Copper Beech Closing,
a business combination in which the Company acquired a significant
portion of the CB Portfolio with the transaction closing on January
30, 2015.
6In
connection with the previously announced strategic repositioning
the Company recognized a $3.1 million gain from the sale of a
portfolio of six undeveloped land parcels. The Company also
recognized a $4.6 million gain from the sale of The Grove at
Lawrence, Kansas and The Grove at Conway, Arkansas.
7For the
three months ended March 31, 2015, the Company recorded an expense
of $1.2 million related to the wind down of the Company's
construction and development operations. For the three months ended
March 31, 2014, the Company recorded revenue from its construction
and development operations of $7.3 million and expenses of $6.3
million resulting in income of $0.9 million.
8For the
period ended March 31, 2015, shares issuable upon settlement of the
exchange feature of the Exchangeable Senior notes were dilutive and
were included in the computation of diluted earnings per share
based on the "if-converted" method. The computation of diluted
earnings per share used net income adjusted for interest expense
related to the Exchangeable Senior notes of $1.4 million and a
share price equal to the March 31, 2015 ending share value of $7.16
per share. The effect of the inclusion of all potentially dilutive
securities for 2014 would be anti-dilutive when computing diluted
earnings per share. For the period ended and 2014, shares issuable
upon settlement of the exchange feature of the Exchangeable Senior
notes were anti-dilutive and were, hence, not included in the
computation of diluted earnings per share based on the
"if-converted" method.
|
CAMPUS CREST
COMMUNITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS TO FUNDS FROM
OPERATIONS ("FFO") & FUNDS FROM OPERATIONS ADJUSTED ("FFOA")
(unaudited)
|
|
(in $000s, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2015
|
|
2014
|
|
$
Change
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to common stockholders
|
|
$9,790
|
|
($1,987)
|
|
$11,777
|
|
Real estate related
depreciation and amortization
|
|
19,254
|
|
6,677
|
|
12,577
|
|
Real estate related
depreciation and amortization - unconsolidated entities
|
|
3,370
|
|
7,333
|
|
(3,963)
|
|
Gain on sale of
assets1
|
(7,748)
|
|
-
|
|
(7,748)
|
|
Gain on purchase of
Copper Beech2
|
(21,642)
|
|
-
|
|
(21,642)
|
|
FFO available to
common shares
|
|
3,024
|
|
12,023
|
|
(9,001)
|
|
Elimination of the
following:
|
|
|
|
|
|
|
|
Transaction
costs3
|
1,492
|
|
585
|
|
907
|
|
Write-off of other
assets
|
769
|
|
-
|
|
769
|
|
Severance
|
508
|
|
-
|
|
508
|
|
Discontinued
operations4
|
1,157
|
|
(939)
|
|
2,096
|
|
FV adjustment of CB
debt5
|
(637)
|
|
(1,754)
|
|
1,117
|
|
Funds from
operations adjusted (FFOA) available to common
shares
|
|
$6,313
|
|
$9,916
|
|
($3,603)
|
|
|
|
|
|
|
|
|
|
FFO per share -
basic
|
|
$0.05
|
|
$0.19
|
|
($0.14)
|
|
FFOA per share -
basic
|
|
$0.10
|
|
$0.15
|
|
($0.05)
|
|
|
|
|
|
|
|
|
|
FFO per share -
diluted6
|
|
$0.05
|
|
$0.19
|
|
($0.14)
|
|
FFOA per share -
diluted6
|
|
$0.10
|
|
$0.15
|
|
($0.05)
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares - basic
|
|
64,720
|
|
64,495
|
|
|
|
Weighted average
common shares - diluted6
|
|
78,686
|
|
64,929
|
|
|
|
|
|
|
|
|
|
|
|
1In
connection with the previously announced strategic repositioning
the Company recognized a $3.1 million gain from the sale of a
portfolio of six undeveloped land parcels. The Company also
recognized a $4.6 million gain from the sale of The Grove at
Lawrence, Kansas and The Grove at Conway,
Arkansas. 2For the
three months ended March 31, 2015, a gain of $21,642 was recognized
in connection with the purchase of the first Copper Beech closing,
a business combination in which the Company acquired a significant
portion of the CB Portfolio with the transaction closing on January
30, 2015.
3For the three months ended March 31, 2015
and March 31, 2014, includes $1,492 and $585, respectively, of
transaction costs in connection with Copper Beech and CSH Montreal
including our proportional share of costs incurred within the
ventures. 4For the three months ended March 31,
2015, the Company recorded an expense of $1.2 million due to the
wind down of our construction and development operations. For the
three months ended March 31, 2014, the Company recorded revenue
from our construction and development operations of $7.3 million
and expenses of $6.3 million resulting in income of $0.9
million. 5Includes
the Company proportionate share of provisional non-cash fair value
of debt and other purchase accounting adjustments in our investment
in Copper Beech. The fair value debt and purchase accounting
adjustments included in equity in earnings related to Copper Beech
were approximately $0.6 million and $1.8 million for the three
months ended March 31, 2015 and 2014,
respectively. 6For
the three months ended March 31, 2015, the effect of the inclusion
of all potentially dilutive securities would be anti-dilutive when
computing FFO per share. For the three months ended March 31, 2014,
the effect of the inclusion of all potentially dilutive securities
would be anti-dilutive when computing FFO and FFOA per share. The
computation of diluted FFOA per share used net income adjusted for
interest expense related to the Exchangeable Senior notes of $1.4
million.
|
CAMPUS CREST
COMMUNITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS TO NET
OPERATING INCOME ("NOI") (unaudited)
|
(in $000s, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
20151
|
|
20141
|
|
|
|
|
|
Net income (loss)
attributable to common stockholders
|
$9,790
|
|
($1,987)
|
Net loss attributable
to noncontrolling interests
|
(2,157)
|
|
(15)
|
Preferred stock
dividends
|
3,050
|
|
3,050
|
Income tax (benefit)
expense
|
-
|
|
(190)
|
Other (income)
expense
|
55
|
|
(66)
|
Gain on sale of
assets
|
(7,748)
|
|
-
|
Severance
|
508
|
|
-
|
Gain on purchase of
Copper Beech
|
(21,642)
|
|
-
|
(Income) loss on
discontinued operations
|
1,157
|
|
(939)
|
Interest
expense
|
7,788
|
|
3,376
|
Equity in losses of
unconsolidated entities
|
2,149
|
|
(319)
|
Depreciation and
amortization
|
19,756
|
|
6,980
|
Ground lease
expense
|
120
|
|
117
|
General and
administrative expense
|
8,038
|
|
3,506
|
Write-off of
corporate other assets
|
769
|
|
-
|
Transaction
costs
|
1,492
|
|
585
|
Property management
services
|
(229)
|
|
(103)
|
Total
NOI
|
$22,896
|
|
$13,995
|
|
Grove same store
properties NOI2
|
$13,602
|
|
$12,814
|
|
Wholly owned Copper
Beech properties NOI
|
$5,884
|
|
$ -
|
|
New properties
NOI3
|
$2,689
|
|
$422
|
|
Grove Pullman and
Toledo NOI4
|
$721
|
|
$759
|
|
|
|
|
|
1 "Same
store" properties are the Company's wholly-owned operating
properties acquired or placed in-service prior to the beginning of
the earliest period presented and owned by the Company and
remaining in service through the end of the latest period presented
or period being analyzed. "New properties" are the Company's
wholly-owned operating properties acquired or placed in service
after the beginning of the earliest period presented or period
being analyzed.
2 Includes
NOI contribution from Copper Beech at Ames. This is a consolidated
joint venture property.
3For the
three months ended March 31, 2015 and 2014, includes financial
results for The Grove at Denton. The Company acquired its joint
venture partner's interest in The Grove at Denton on January 21,
2014. The occupancy data and net operating income related to Denton
are included in new properties. Of the $512 net operating income in
March 31, 2014, $422 relates to the Company's 100% ownership and
the remaining amount relates to the Company's joint venture
ownership.
4Includes
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, impairments, severance,
discontinued operations, the effect of not exercising the Copper
Beech purchase option, 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, impairments, severance, discontinued operations, the effect
of not exercising the Copper Beech purchase option, the write-off
of development cost, 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.
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SOURCE Campus Crest Communities, Inc.