CHARLOTTE, N.C., Sept. 29, 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 June 30, 2015.
"We have successfully concluded the pre-leasing for the
2015/2016 academic year with the total portfolio ending up 320
basis points over the 2014/2015 leasing results. The portfolio
effective rental rates increased over 200 basis points," stated
David Coles, Interim Chief Executive
Officer. "As part of our continued efforts to simplify the balance
sheet, we have successfully eliminated three additional joint
venture investments including the dispositions of our JV properties
in Norman, OK and San Angelo, TX as well as acquiring the full
ownership interest in our former JV property in Fayetteville, AR. Despite the ongoing
strategic review we have executed well against our pre-leasing
goals as demonstrated in our year-over-year gains in occupancy and
rate."
"As previously disclosed, the Board continues to pursue a
potential sale of the Company, and our transaction committee
remains engaged in discussions with the leading potential
purchaser. Those discussions are ongoing and subject to reaching
mutual agreement on terms and conditions, and there can be no
assurance that those discussions will result in an agreement for
the sale of the Company. If an agreement is reached, it
would be subject to customary and other negotiated closing
conditions" noted Aaron Halfacre,
President and Chief Investment Officer. "The Board has not
eliminated any alternatives and will continue to consider and
discuss with interested parties a range of potential strategic
alternatives. Until such time as that process has
concluded, the Company does not anticipate providing any further
updates."
Property Leasing Results for Academic Year 2015/2016
The following tables highlight the leasing activity for the
2015/2016 academic year as of September 29,
2015:
Preleasing
Update
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preleasing1
|
|
|
|
|
Properties
|
|
Beds
|
|
AY
'14/'15
|
|
AY
'15/'16
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Same Store
Properties by Occupancy2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1
(98%+)
|
|
34
|
|
16,027
|
|
99.8%
|
|
96.7%
|
|
(3.1%)
|
Tier 2 (95% to
97.9%)
|
|
7
|
|
4,080
|
|
96.6%
|
|
85.0%
|
|
(11.6%)
|
Tier 3 (90% to
94.9%)
|
|
7
|
|
3,776
|
|
91.6%
|
|
95.2%
|
|
3.6%
|
Tier 4 (Below
90%)
|
|
20
|
|
10,931
|
|
80.6%
|
|
85.2%
|
|
4.6%
|
|
|
|
|
|
|
|
|
|
|
|
Total Same Store
Properties
|
|
68
|
|
34,814
|
|
92.5%
|
|
91.5%
|
|
(1.0%)
|
|
|
|
|
|
|
|
|
|
|
|
Same Store
Properties By Ownership
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholly
Owned
|
|
61
|
|
28,995
|
|
92.7%
|
|
91.1%
|
|
(1.6%)
|
Joint
Venture
|
|
7
|
|
5,819
|
|
91.5%
|
|
93.9%
|
|
2.4%
|
|
|
|
|
|
|
|
|
|
|
|
Total Same Store
Properties
|
|
68
|
|
34,814
|
|
92.5%
|
|
91.5%
|
|
(1.0%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 Deliveries By
Type
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grove & Copper
Beech
|
|
7
|
|
4,345
|
|
73.1%
|
|
81.4%
|
|
8.3%
|
evo
Philadelphia
|
|
1
|
|
850
|
|
46.6%
|
|
98.8%
|
|
52.2%
|
evo
Montreal
|
|
2
|
|
2,223
|
|
10.9%
|
|
50.7%
|
|
39.8%
|
|
|
|
|
|
|
|
|
|
|
|
Total 2014
Deliveries
|
|
10
|
|
7,418
|
|
51.4%
|
|
74.2%
|
|
22.8%
|
|
|
|
|
|
|
|
|
|
|
|
2014 Deliveries By
Ownership
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholly
Owned
|
|
5
|
|
3,105
|
|
78.6%
|
|
86.3%
|
|
7.7%
|
Joint
Venture
|
|
5
|
|
4,313
|
|
31.8%
|
|
65.5%
|
|
33.7%
|
|
|
|
|
|
|
|
|
|
|
|
Total 2014
Deliveries
|
|
10
|
|
7,418
|
|
51.4%
|
|
74.2%
|
|
22.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Portfolio By
Ownership
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholly
Owned
|
|
66
|
|
32,100
|
|
91.3%
|
|
90.6%
|
|
(0.7%)
|
Joint
Venture
|
|
12
|
|
10,132
|
|
66.1%
|
|
81.8%
|
|
15.7%
|
|
|
|
|
|
|
|
|
|
|
|
Total
Portfolio
|
|
78
|
|
42,232
|
|
85.3%
|
|
88.5%
|
|
3.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footnotes:
|
|
|
|
|
|
|
|
|
|
|
1) AY'14/'15
represents results through September 30, 2014; AY'15'/'16
represents results through September 24, 2015.
|
2) Tiers based on
'14/'15 leasing
|
|
|
|
|
|
Financial Highlights for the Three Months Ended June 30, 2015
The second quarter 2015 results presented in the accompanying
Supplemental Analyst Package reflect the consolidation of assets
acquired via the Copper Beech transaction. For the three months
ended June 30, 2015, revenue, revenue
per occupied bed, net operating income ("NOI") and Funds From
Operations Adjusted ("FFOA") are shown in the table below.
Financial
Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
($'000, except per
share/bed data)
|
|
2015
|
|
2014
|
|
Change
|
|
2015
|
|
2014
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenues
|
|
$45,679
|
|
$24,990
|
|
82.8%
|
|
$86,008
|
|
$49,701
|
|
73.1%
|
Total RevPoB (wholly
owned Grove)
|
|
555
|
|
524
|
|
5.9%
|
|
551
|
|
525
|
|
5.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total RevPoB (wholly
owned Copper Beech)
|
|
491
|
|
489
|
|
0.4%
|
|
489
|
|
487
|
|
0.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOI
|
|
25,524
|
|
13,916
|
|
83.4%
|
|
48,420
|
|
27,911
|
|
73.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFOA
|
|
6,295
|
|
9,039
|
|
(30.4%)
|
|
12,607
|
|
18,954
|
|
(33.5%)
|
FFOA per
Share
|
|
$0.10
|
|
$0.14
|
|
(30.5%)
|
|
$0.19
|
|
$0.29
|
|
(32.8%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of the net income attributable to common
stockholders to FFOA can be found at the end of this release.
Balance Sheet
As of June 30, 2015, the Company
held cash and cash equivalents totaling $15.7 million and $17.4
million of restricted cash.
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 accrue at the effective annual rate of
$2.00 per share until paid.
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 79
student housing properties with over 42,000 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
Assets
|
|
|
|
|
Investment in real
estate, net:
|
|
|
|
|
|
Student housing
properties1
|
|
$1,553,782
|
|
$935,962
|
|
Accumulated
depreciation
|
|
(150,912)
|
|
(128,121)
|
|
Land and properties
held for sale2
|
|
15,019
|
|
37,163
|
|
Land held for
investment3
|
|
7,413
|
|
7,413
|
Investment in real
estate, net
|
|
1,425,302
|
|
852,417
|
Investment in
unconsolidated entities1
|
|
87,730
|
|
259,740
|
Cash and cash
equivalents
|
|
15,679
|
|
15,240
|
Restricted
cash4
|
|
17,411
|
|
5,429
|
Student receivables,
net
|
|
2,070
|
|
1,587
|
Cost and earnings in
excess of construction billings
|
|
-
|
|
3,887
|
Intangible assets,
net
|
|
9,315
|
|
-
|
Other
assets
|
|
32,823
|
|
35,742
|
Total
assets
|
|
$1,590,330
|
|
$1,174,042
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
Mortgage and
construction loans
|
|
$600,750
|
|
$300,673
|
|
Line of credit and
other debt
|
|
367,680
|
|
317,746
|
|
Accounts payable and
accrued expenses
|
|
28,621
|
|
53,816
|
|
Construction billings
in excess of cost and earnings
|
|
-
|
|
481
|
|
Other
liabilities
|
|
35,025
|
|
22,092
|
Total
liabilities
|
|
1,032,076
|
|
694,808
|
Equity:
|
|
|
|
|
|
Preferred
stock
|
|
$61
|
|
$61
|
|
Common
stock
|
|
648
|
|
648
|
|
Additional common and
preferred paid-in capital
|
|
781,280
|
|
773,998
|
|
Accumulated deficit
and distributions
|
|
(301,776)
|
|
(301,566)
|
|
Accumulated other
comprehensive loss
|
|
(3,090)
|
|
(2,616)
|
Total stockholders'
equity
|
|
477,123
|
|
470,525
|
Noncontrolling
interests
|
|
81,131
|
|
8,709
|
Total
equity
|
|
558,254
|
|
479,234
|
Total liabilities
and equity
|
|
$1,590,330
|
|
$1,174,042
|
|
|
|
|
|
|
|
|
|
|
|
|
1 As of
June 30, 2015, the Company's 100% interest in 29 Copper Beech
properties (and Copper Beech at Ames), pursuant to the closing of
the Copper Beech transaction, is included in "Student housing
properties." In prior periods, the Company's investment in these
properties was included in "Investment in unconsolidated
entities."
|
2 As of
June 30, 2015, includes four land parcels and one property that the
Company intends to divest.
|
3 As of
June 30, 2015, includes six strategically held land parcels that
could be used for the development of phase two properties, with an
aggregate bed count ranging from approximately 1,000 to
1,500.
|
4
Restricted cash includes escrow accounts held by lenders for the
purpose of paying taxes, insurance and funding capital
improvements.
|
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,
|
|
|
|
2015
|
|
2014
|
|
$
Change
|
|
2015
|
|
2014
|
|
$
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Student housing
rental
|
|
$43,722
|
|
$23,637
|
|
$20,085
|
|
$82,512
|
|
$47,272
|
|
$35,240
|
|
Student housing
services
|
|
1,745
|
|
1,026
|
|
720
|
|
3,055
|
|
1,999
|
|
1,056
|
|
Property management
services
|
|
212
|
|
327
|
|
(115)
|
|
441
|
|
430
|
|
11
|
Total
revenues
|
|
45,679
|
|
24,990
|
|
20,690
|
|
86,008
|
|
49,701
|
|
36,307
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Student housing
operations
|
|
19,943
|
|
10,747
|
|
9,197
|
|
37,147
|
|
21,360
|
|
15,787
|
|
General and
administrative
|
|
10,423
|
|
3,649
|
|
6,773
|
|
18,461
|
|
7,155
|
|
11,306
|
|
Severance1
|
|
62
|
|
-
|
|
62
|
|
570
|
|
-
|
|
570
|
|
Write-off of other
assets
|
|
597
|
|
-
|
|
597
|
|
1,366
|
|
-
|
|
1,366
|
|
Transaction
costs2
|
|
1,640
|
|
1,460
|
|
180
|
|
3,132
|
|
2,045
|
|
1,087
|
|
Ground
leases
|
|
120
|
|
120
|
|
-
|
|
240
|
|
237
|
|
3
|
|
Depreciation and
amortization
|
|
27,861
|
|
7,253
|
|
20,608
|
|
47,617
|
|
14,233
|
|
33,384
|
Total operating
expenses
|
|
60,646
|
|
23,229
|
|
37,417
|
|
108,533
|
|
45,030
|
|
63,503
|
Equity in earnings
(losses) of unconsolidated entities3,4
|
|
790
|
|
(891)
|
|
1,681
|
|
(1,359)
|
|
(572)
|
|
(787)
|
Operating (loss)
income
|
|
(14,177)
|
|
870
|
|
(15,047)
|
|
(23,885)
|
|
4,099
|
|
(27,984)
|
Nonoperating
income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
(9,270)
|
|
(2,950)
|
|
(6,320)
|
|
(17,058)
|
|
(6,326)
|
|
(10,732)
|
|
Gain on purchase of
Copper Beech5
|
|
6,393
|
|
-
|
|
6,393
|
|
28,035
|
|
-
|
|
28,035
|
|
Gain on sale of
assets6
|
|
-
|
|
-
|
|
-
|
|
7,748
|
|
-
|
|
7,748
|
|
Other income
(expense)
|
|
4
|
|
104
|
|
(100)
|
|
(51)
|
|
170
|
|
(221)
|
Total nonoperating
(expense) income, net
|
|
(2,873)
|
|
(2,846)
|
|
(27)
|
|
18,674
|
|
(6,156)
|
|
24,830
|
Net loss before
income tax benefit
|
|
(17,050)
|
|
(1,976)
|
|
(15,074)
|
|
(5,210)
|
|
(2,057)
|
|
(3,153)
|
Income tax
benefit
|
|
-
|
|
210
|
|
(210)
|
|
-
|
|
400
|
|
(400)
|
Loss from
continuing operations
|
|
(17,050)
|
|
(1,766)
|
|
(15,285)
|
|
(5,210)
|
|
(1,657)
|
|
(3,553)
|
Income (loss) from
discontinued operations7
|
|
-
|
|
1,374
|
|
(1,374)
|
|
(1,157)
|
|
2,313
|
|
(3,470)
|
Net (loss)
income
|
|
(17,050)
|
|
(392)
|
|
(16,658)
|
|
(6,367)
|
|
656
|
|
(7,023)
|
Less: Dividends on
preferred stock
|
|
3,050
|
|
3,050
|
|
-
|
|
6,100
|
|
6,100
|
|
-
|
Less: Net loss
attributable to noncontrolling interests
|
|
(4,000)
|
|
12
|
|
(4,012)
|
|
(6,157)
|
|
(3)
|
|
(6,154)
|
Net loss
attributable to common stockholders
|
|
($16,100)
|
|
($3,454)
|
|
($12,645)
|
|
($6,310)
|
|
($5,441)
|
|
($869)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data -
basic and diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations attributable to common stockholders
|
|
($0.25)
|
|
($0.07)
|
|
|
|
($0.08)
|
|
($0.12)
|
|
|
|
Income (loss) from
discontinued operations attributable to common
stockholders
|
|
$0.00
|
|
$0.02
|
|
|
|
($0.02)
|
|
$0.04
|
|
|
Net loss per share
attributable to common stockholders
|
|
($0.25)
|
|
($0.05)
|
|
|
|
($0.10)
|
|
($0.08)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
64,741
|
|
64,681
|
|
|
|
64,737
|
|
64,588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1For the
three months ended June 30, 2015, severance includes termination
benefits for former executives in connection with the
Company's strategic repositioning.
|
|
2Transaction costs were $1.6 million for
the three months ended June 30, 2015, primarily attributable to
consents, professional fees and other related costs totaling $1.6
million related to the Copper Beech acquisition. Transaction costs
were $3.1 million for the six months ended June 30, 2015, primarily
attributable to consents, professional fees and other related costs
totaling $2.8 million related to the Copper Beech acquisition, with
the remaining $0.3 million related to various other costs
associated with the Montreal transaction and the Company's
strategic alternative process.
|
|
|
|
3For the
six months ended June 30, 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 29 Copper
Beech properties and partial interest in 5 Copper Beech
properties.
|
|
|
|
|
4For the
three months and six months ended June 30, 2015, $1.1 million and
$2.6 million equity in losses of unconsolidated entities were
contributed from the Montreal operations, respectively.
|
|
5For the
three months ended June 30, 2015, a preliminary gain of $6.4
million was recognized in connection with the Second Copper Beech
Closing, a business combination in which the Company acquired a
100% interest in two additional Copper Beech properties, with the
transaction closing on April 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 in 1Q 2015. 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
six months ended June 30, 2015, the Company recorded expenses of
$1.2 million due to the wind down of its construction and
development operations. No construction and development
revenues were recorded during the three months ended June 30, 2015.
For the three months ended June 30, 2014, the Company recorded
revenue from its construction and development operations of $10.3
million and expenses of $8.9 million resulting in income of $1.4
million.
|
|
|
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
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2015
|
|
2014
|
|
$
Change
|
|
2015
|
|
2014
|
|
$
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to common stockholders
|
($16,100)
|
|
($3,454)
|
|
($12,646)
|
|
($6,310)
|
|
($5,441)
|
|
($869)
|
Real estate related
depreciation and amortization
|
26,942
|
|
6,908
|
|
20,034
|
|
46,196
|
|
13,585
|
|
32,611
|
Real estate related
depreciation and amortization - unconsolidated entities
|
2,675
|
|
7,264
|
|
(4,589)
|
|
6,045
|
|
14,597
|
|
(8,552)
|
Gain on sale of
assets1
|
-
|
|
-
|
|
-
|
|
(7,748)
|
|
-
|
|
(7,748)
|
Gain on purchase of
Copper Beech2
|
(6,393)
|
|
-
|
|
(6,393)
|
|
(28,035)
|
|
-
|
|
(28,035)
|
FFO available to
common shares
|
7,124
|
|
10,718
|
|
(3,594)
|
|
10,148
|
|
22,741
|
|
(12,593)
|
Elimination of the
following:
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction
costs3
|
1,640
|
|
1,460
|
|
180
|
|
3,132
|
|
2,045
|
|
1,087
|
|
Write-off of other
assets
|
597
|
|
-
|
|
597
|
|
1,366
|
|
-
|
|
1,366
|
|
Severance
|
62
|
|
-
|
|
62
|
|
570
|
|
-
|
|
570
|
|
Discontinued
operations4
|
-
|
|
(1,374)
|
|
1,374
|
|
1,157
|
|
(2,313)
|
|
3,470
|
|
FV adjustment of CB
debt5
|
(3,128)
|
|
(1,765)
|
|
(1,364)
|
|
(3,766)
|
|
(3,519)
|
|
(247)
|
Funds from
operations adjusted (FFOA) available to common
shares
|
$6,295
|
|
$9,039
|
|
($2,743)
|
|
$12,607
|
|
$18,954
|
|
($6,345)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per share - basic
and diluted
|
$0.11
|
|
$0.17
|
|
($0.06)
|
|
$0.16
|
|
$0.35
|
|
($0.19)
|
FFOA per share -
basic and diluted
|
$0.10
|
|
$0.14
|
|
($0.04)
|
|
$0.19
|
|
$0.29
|
|
($0.10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares - basic
|
64,741
|
|
64,681
|
|
|
|
64,737
|
|
64,588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 in 1Q 2015. 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 June 30, 2015, a preliminary gain of $6.4
million was recognized in connection with the Second CB Closing, a
business combination in which the Company acquired a 100% interest
in two additional Copper Beech properties, with the transaction
closing on April 30, 2015.
|
|
|
3Transaction costs were $1.6 million for
the three months ended June 30, 2015, primarily attributable to
consents, professional fees and other related costs totaling $1.6
million related to the Copper Beech acquisition. Transaction costs
were $3.1 million for the six months ended June 30, 2015, primarily
attributable to consents, professional fees and other related costs
totaling $2.8 million related to the Copper Beech acquisition, with
the remaining $0.3 million related to various other costs
associated with the Montreal transaction and the Company's
strategic alternative process.
|
|
|
|
4For the
six months ended June 30, 2015, the Company recorded expenses of
$1.2 million due to the wind down of its construction and
development operations. No construction and development
revenues were recorded during the three months ended June 30, 2015.
For the three months ended June 30, 2014, the Company recorded
revenue from its construction and development operations of $10.3
million and expenses of $8.9 million resulting in income of $1.4
million.
|
|
|
5Includes
the Company's proportionate share of non-cash fair value debt and
other purchase accounting adjustments in its investment in Copper
Beech accounted for under the equity method, as well as the fair
value of debt adjustments for those Copper Beech properties
consolidated during the six months ended June 30, 2015.
|
|
|
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
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
20151
|
|
20141
|
|
20151
|
|
20141
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to common stockholders
|
($16,100)
|
|
($3,454)
|
|
($6,310)
|
|
($5,441)
|
|
Net loss attributable
to noncontrolling interests
|
(4,000)
|
|
12
|
|
(6,157)
|
|
(3)
|
|
Preferred stock
dividends
|
3,050
|
|
3,050
|
|
6,100
|
|
6,100
|
|
Income tax (benefit)
expense
|
-
|
|
(210)
|
|
-
|
|
(400)
|
|
Other (income)
expense
|
(4)
|
|
(104)
|
|
51
|
|
(170)
|
|
Gain on sale of
assets
|
-
|
|
-
|
|
(7,748)
|
|
-
|
|
Severance
|
62
|
|
-
|
|
570
|
|
-
|
|
Gain on purchase of
Copper Beech
|
(6,393)
|
|
-
|
|
(28,035)
|
|
-
|
|
(Income) loss on
discontinued operations
|
-
|
|
(1,374)
|
|
1,157
|
|
(2,313)
|
|
Interest
expense
|
9,270
|
|
2,950
|
|
17,058
|
|
6,326
|
|
Equity in losses of
unconsolidated entities
|
(790)
|
|
891
|
|
1,359
|
|
572
|
|
Depreciation and
amortization
|
27,861
|
|
7,253
|
|
47,617
|
|
14,233
|
|
Ground lease
expense
|
120
|
|
120
|
|
240
|
|
237
|
|
General and
administrative expense
|
10,423
|
|
3,649
|
|
18,461
|
|
7,155
|
|
Write-off of
corporate other assets
|
597
|
|
-
|
|
1,366
|
|
-
|
|
Transaction
costs
|
1,640
|
|
1,460
|
|
3,132
|
|
2,045
|
|
Property management
services
|
(212)
|
|
(327)
|
|
(441)
|
|
(430)
|
|
Total
NOI
|
$25,524
|
|
$13,916
|
|
$48,420
|
|
$27,911
|
|
|
Grove same store
properties NOI2
|
$13,496
|
|
$12,633
|
|
$27,098
|
|
$25,447
|
|
|
Wholly owned Copper
Beech properties NOI
|
$8,601
|
|
$ -
|
|
$14,485
|
|
$ -
|
|
|
New properties
NOI3
|
$2,658
|
|
$530
|
|
$5,347
|
|
$952
|
|
|
Grove Pullman and
Toledo NOI4
|
$769
|
|
$753
|
|
$1,490
|
|
$1,512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, which was a
consolidated JV property until January 30, 2015, at which time the
company purchased the remaining equity such that it is now 100%
owned
|
|
3 For the
six months ended June 30, 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 $1,042 net operating income for
the six months ended June 30, 2014, $952 relates to the Company's
100% ownership and the remaining amount relates to the Company's
joint venture ownership.
|
|
|
4 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, 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.