American Campus Communities, Inc. (NYSE:ACC) today announced the
following financial results for the quarter ended June 30,
2021.
Highlights
- Reported net loss attributable to ACC of $9.4 million or $0.07
per fully diluted share, versus net loss of $13.3 million or $0.10
per fully diluted share in the second quarter 2020.
- Reported FFOM of $58.8 million or $0.42 per fully diluted
share, versus $50.9 million or $0.37 per fully diluted share in the
second quarter prior year.
- Same store net operating income ("NOI") increased 11.6 percent
versus the second quarter 2020. Revenues increased 10.3 percent and
operating expenses increased 8.9 percent as compared to the prior
year quarter.
- Preleasing for the 2022 same store portfolio for academic year
2021-2022 currently stands at 91.7 percent as of July 23, 2021, as
compared to 88.6 percent for the same date prior year.
- Delivered phase four of the ten-phase Flamingo Crossings
Village, located near Walt Disney World® Resort in May. With the
completion of phase five in July, the company has delivered 4,996
beds on schedule and within budget. Since commencing leasing
activities only two months ago, approximately 3,200 residents have
occupied Flamingo Crossings Village, with occupancy expected to
increase to at least 85 percent this fall.
- Extended the maturity of the unsecured revolving credit
facility to May 2025 and demonstrated the company’s commitment to
Environmental, Social and Governance (“ESG”) practices by
introducing sustainability-linked pricing to the facility, whereby
the borrowing rate improves if the company meets certain ESG
performance targets.
- Won an industry-leading four Innovator Awards at this year's
InterFace Student Housing National Conference, including On-Campus
Best New Development; On-Campus Best Public-Private Financing
Solution; On-Campus Best Architecture; and On-Campus Best
Implementation of Mixed-Use/Live-Learn. Since the inception of the
Innovator Awards, ACC and its communities have won an
industry-leading total of 43 awards, furthering its best-in-class
reputation among colleges, universities and industry partners.
“The positive trends toward normalization continue on all
fronts,” said Bill Bayless, American Campus Communities CEO. “We
outperformed our operational and financial expectations for the
quarter, our Disney College Program housing continues to make great
strides in initial occupancy, and our Fall 2021 lease-up moved
ahead of the prior year’s pace in early July. Our preleasing
velocity is now trending at a level that we believe will result in
occupancy and average rental rate gains producing opening rental
revenue growth for the 2021-2022 academic year of 5.1 – 7.6
percent. We are pleased to now be able to provide a financial
outlook for the full year that includes these positive trends.
While the short-term impacts from the COVID pandemic will linger
into fall of 2021 at varying degrees geographically, we continue to
believe that we will return to our historic range of occupancy for
the 2022-2023 academic year, as the long-term fundamentals of our
sector are strong and appear to be gaining tailwinds. Specifically,
these tailwinds include admission applications at record highs at
the four-year public and private universities we serve and target;
new supply is continuing to trend downward nationally through the
2022-2023 academic year; universities nationwide are resuming
in-person academic and social activities and are reinstating their
on-campus housing policies for first-year students in Fall 2021;
and university partnership opportunities to modernize on-campus
housing are resuming to pre-pandemic levels and beyond. This
environment provides the company a unique opportunity for robust
internal growth and high-quality external growth, driving
meaningful earnings growth and net asset value creation in the
years ahead.”
Second Quarter Operating Results
Revenue for the 2021 second quarter totaled $208.5 million,
versus $185.5 million in the second quarter 2020, and operating
income for the quarter totaled $19.4 million compared to $12.5
million in the prior year second quarter. The increase in revenue
and operating income was primarily due to COVID-19 related
financial impacts affecting the prior year period, including rent
relief, the loss of revenues from summer camps and conferences,
increased uncollectible accounts and waived fees. Net loss for the
2021 second quarter totaled $9.4 million, or $0.07 per fully
diluted share, compared with net loss of $13.3 million, or $0.10
per fully diluted share for the same quarter in 2020.
FFO for the 2021 second quarter totaled $56.7 million, or $0.41
per fully diluted share, as compared to $50.3 million, or $0.36 per
fully diluted share for the same quarter in 2020. FFOM for the 2021
second quarter was $58.8 million, or $0.42 per fully diluted share
as compared to $50.9 million, or $0.37 per fully diluted share for
the same quarter in 2020. A reconciliation of FFO and FFOM to net
income is provided in Table 3.
NOI for same store properties was $103.3 million in the quarter,
an increase of 11.6 percent from $92.5 million in the 2020 second
quarter. Same store property revenues increased by 10.3 percent and
same store property operating expenses increased by 8.9 percent
versus the prior year quarter. The increase in same store property
operating results is primarily due to the normalization of the
company’s operations in 2021, as compared to the prior year
quarter, which was significantly impacted by COVID-19, as discussed
above. NOI for the total owned portfolio increased 13.3 percent to
$103.9 million for the quarter from $91.7 million in the comparable
period of 2020. A reconciliation of same store NOI to total NOI is
provided in Table 4.
Academic Year 2021-2022 Preleasing Update
Preleasing for the company’s 2022 same store portfolio for
academic year 2021-2022 currently stands at 91.7 percent as of July
23, 2021, as compared to 88.6 percent for the same date prior year.
The company’s 2021 outlook, which is detailed on page S-16 of the
Supplemental Analyst Package, includes opening Fall 2021 occupancy
of 92.0 to 94.0 percent and average rental rate growth of 3.0 to
3.5 percent.
“As Bill discussed in his InterFace Student Housing Conference
presentation on July 14th, the long-term fundamentals of the
student housing sector are strong and full normalization is
expected in Fall 2022. With regard to Fall 2021, while we are
extremely pleased with the progress we have made, lingering
short-term impacts of the COVID pandemic have prohibited a full
return to normalcy,” said Jennifer Beese, American Campus
Communities COO. “These short-term impacts include:
- current COVID-impacted occupancy in ACC communities is
resulting in a lower absolute number of renewal leases for the
2021-2022 academic year, despite renewal percentages being in-line
with pre-pandemic ranges;
- universities relaxing their on-campus housing policies in Fall
2020 caused lower on-campus occupancies (we estimate on-campus
housing occupancy in our 68 owned markets to have been
approximately 67 percent), resulting in a lower number of
first-year 2020 on-campus occupants directly transitioning to
off-campus housing in Fall 2021;
- geographic differences in university policies and consumer
behaviors; and
- continuing COVID-19 related concerns among some students and
parents.
Given these lingering impacts, we are very pleased with the
student desire to be back in the campus environment, as evidenced
by the increasing demand for spring and summer leases at our
properties and the meaningful projected rental revenue growth that
the Fall 2021 lease-up is anticipated to produce. We remain very
optimistic as the trend toward full normalization in Fall 2022
remains on track. With universities resuming their on-campus
housing policies, significantly increasing levels of in-person
learning and extracurricular events, and most allowing full
capacity attendance at fall sporting events, we will once again
have the opportunity to implement our exclusive in-person and
sports marketing programs as we kick off the 2022 leasing
season.”
Portfolio Update
Developments
During the quarter, the company delivered the $84.5 million
fourth phase of the ten-phase Flamingo Crossings Village, located
near Walt Disney World® Resort. With the completion of phase five
in July, the company has delivered 4,996 beds, representing $298.9
million of development on schedule and within budget. Since
commencing leasing activities on May 27, approximately 3,200
residents have occupied Flamingo Crossings Village. Based on future
onboarding plans and taking into consideration COVID protocols, the
company anticipates occupancy to be at least 85 percent of
available beds by the fall of 2021.
The company continues construction on the remaining five phases
of Flamingo Crossings Village, which are expected to be completed
through 2023. Barring unforeseen future impacts related to the
COVID-19 pandemic, the company expects the project to meet its
original 2022 targeted yield, with full stabilization at the 6.8
percent targeted yield in May 2023, as initially anticipated prior
to the pandemic.
Capital Markets
During the quarter, the company renewed its $1.0 billion senior
unsecured revolving credit facility. The facility now matures in
May 2025 and demonstrates the company’s commitment to ESG with
sustainability-linked pricing, whereby the borrowing rate improves
if the company meets certain ESG performance targets. The facility
also includes two 6-month extension options and an accordion
feature that allows the company to expand the facility by up to an
additional $500 million, subject to the satisfaction of certain
conditions. Borrowing rates float at a margin over LIBOR plus an
annual facility fee with spreads reflecting current market terms,
which are more favorable than those contained in the prior
facility. Both the margin and the facility fee are priced on a grid
that is tied to the company’s credit rating. Based on the company’s
current Baa2/BBB rating, the annual facility fee is 20 basis points
and the LIBOR margin is 85 basis points, a reduction of 15 basis
points from previous pricing levels.
At-The-Market (ATM) Share Offering Program
Since the beginning of the second quarter, the company sold 1.2
million shares of common stock under the ATM program at a weighted
average price of $49.05 per share, for net proceeds of
approximately $58.9 million. The proceeds were primarily used to
repay borrowings on the company’s revolving credit facility, which
was utilized to fund construction on our high-yielding development
pipeline. Total gross proceeds of $59.7 million have been raised
under the company’s current ATM program, leaving approximately $440
million of capacity.
COVID-19 Update
The company continues to collaborate in good faith with its
university partners and during the quarter refunded $0.7 million of
students’ rent for a portion of existing on-campus leases at one
university. The company anticipates refunds of $0.7 million in the
third quarter and does not expect the need for on-campus refunds to
continue into the upcoming 2021-2022 academic year.
The company collected an average of 96.8 percent of rent during
the second quarter, representing total delinquency of approximately
$5.8 million, which includes approximately $0.3 million in rent
relief under the company’s Resident Hardship Program.
2021 Outlook
The company believes that the financial results for the fiscal
year ending December 31, 2021 may be affected by, among other
factors:
- national and regional economic trends and events;
- the success of our leasing activities for the 2021-2022
academic year, which could be impacted as the COVID-19 pandemic
continues to evolve;
- the level of lease terminations, rent refunds, and/or
abatements granted to student and commercial tenants;
- economic hardship experienced by student and commercial tenants
and its ultimate effect on rent collections and thus the provision
for uncollectible accounts;
- canceled or delayed third-party development projects;
- reduced revenues at our third-party managed properties
resulting in reduced third-party management fee income;
- the impact of any stimulus payments that may be received by the
company, our tenants, and/or our University partners under the
Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”)
and any future similar governmental actions;
- any increase in, or reduction to, operating expenses as a
result of COVID-19;
- the amount of leasing and related fees earned for the 2021-2022
and 2022-2023 academic years, which are affected by the timing and
velocity of the company’s leasing process;
- the timing and amount of any acquisitions, dispositions or
joint venture activity;
- interest rate risk;
- the timing of commencement and completion of construction for
owned development projects;
- university enrollment, funding and policy trends;
- the amount of income recognized by the taxable REIT
subsidiaries and any corresponding income tax expense;
- the outcome of legal proceedings arising in the normal course
of business; and
- the finalization of property tax rates and assessed values in
certain jurisdictions.
Based upon these factors, management anticipates that fiscal
year 2021 FFO will be in the range of $1.95 to $2.09 per fully
diluted share and FFOM will be in the range of $1.93 to $2.07 per
fully diluted share. Additionally, management anticipates that
third quarter 2021 FFO will be in the range of $0.32 to $0.36 per
fully diluted share and FFOM will be in the range of $0.33 to $0.37
per fully diluted share.
For additional details regarding the company’s outlook, please
see pages S-15 and S-16 of the Supplemental Analyst Package 2Q
2021. All guidance is based on the current expectations and
judgment of the company’s management team. A reconciliation of the
range provided for projected net income to projected FFO and FFOM
is included in Table 5.
Supplemental Information and Earnings Conference Call
Supplemental financial and operating information, as well as
this release, are available in the investor relations section of
the American Campus Communities website, www.americancampus.com. In
addition, the company will host a conference call to discuss second
quarter results and the 2021 outlook on Tuesday, July 27, 2021 at
10:00 a.m. ET (9:00 a.m. CT). The conference call may be accessed
by dialing 888-317-6003 passcode 5977280, or 412-317-6061 for
international participants.
To listen to the live webcast, go to www.americancampus.com at
least 15 minutes prior to the call so that required audio software
can be downloaded. A replay of the conference call will be
available beginning one hour after the end of the call until August
10, 2021 by dialing 877-344-7529 or 412-317-0088 conference number
10157764. Additionally, the replay will be available for one year
at www.americancampus.com.
Non-GAAP Financial Measures
The National Association of Real Estate Investment Trusts
("NAREIT") currently defines Funds from Operations ("FFO") as net
income or loss attributable to common shares computed in accordance
with generally accepted accounting principles ("GAAP"), excluding
gains or losses from depreciable operating property sales,
impairment charges and real estate depreciation and amortization,
and after adjustments for unconsolidated partnerships and joint
ventures. We present FFO because we consider it an important
supplemental measure of our operating performance and believe it is
frequently used by securities analysts, investors and other
interested parties in the evaluation of REITs. We also believe it
is meaningful to present a measure we refer to as FFO-Modified, or
(“FFOM”), which reflects certain adjustments related to the
economic performance of our on-campus participating properties and
excludes other items, as we determine in good faith, that do not
reflect our core operations on a comparative basis. FFO and FFOM
should not be considered as alternatives to net income or loss
computed in accordance with GAAP as an indicator of our financial
performance or to cash flow from operating activities computed in
accordance with GAAP as an indicator of our liquidity, nor are
these measures indicative of funds available to fund our cash
needs, including our ability to pay dividends or make
distributions.
The company defines property net operating income (“NOI”) as
property revenues less direct property operating expenses,
excluding depreciation, but including allocated corporate general
and administrative expenses.
About American Campus Communities
American Campus Communities, Inc. is the largest owner, manager
and developer of high-quality student housing communities in the
United States. The company is a fully integrated, self-managed and
self-administered equity real estate investment trust (REIT) with
expertise in the design, finance, development, construction
management and operational management of student housing
properties. As of June 30, 2021, American Campus Communities owned
166 student housing properties containing approximately 111,900
beds. Including its owned and third-party managed properties, ACC's
total managed portfolio consisted of 205 properties with
approximately 141,300 beds. Visit www.americancampus.com.
Forward-Looking Statements
In addition to historical information, this press release
contains forward-looking statements under the applicable federal
securities law. These statements are based on management’s current
expectations and assumptions regarding markets in which American
Campus Communities, Inc. (the “Company”) operates, operational
strategies, anticipated events and trends, the economy, and other
future conditions. Forward-looking statements are not guarantees of
future performance and involve certain risks and uncertainties,
which are difficult to predict. These risks and uncertainties that
could cause actual results to differ materially from those
expressed or implied in the forward looking-statements include
those related to the COVID-19 pandemic, about which there are still
many unknowns, including the duration of the pandemic and the
extent of its impact, and those discussed in our filings with the
Securities and Exchange Commission, including our Annual Report on
Form 10-K for the year ended December 31, 2020 under the heading
“Risk Factors” and under the heading “Business - Forward-looking
Statements” and subsequent quarterly reports on Form 10-Q. We
undertake no obligation to publicly update any forward-looking
statements, including our preleasing activity or expected full year
2021 operating results, whether as a result of new information,
future events, or otherwise. The information contained on our
website is not a part of this release.
Table 1
American Campus Communities,
Inc. and Subsidiaries
Consolidated Balance
Sheets
(dollars in thousands)
June 30, 2021
December 31, 2020
(unaudited)
Assets
Investments in real estate
Owned properties, net
$
6,713,823
$
6,721,744
On-campus participating properties,
net
65,984
69,281
Investments in real estate, net
6,779,807
6,791,025
Cash and cash equivalents
30,283
54,017
Restricted cash
27,476
19,955
Student contracts receivable, net
9,775
11,090
Operating lease right of use assets 1
457,520
457,573
Other assets 1
233,580
197,500
Total assets
$
7,538,441
$
7,531,160
Liabilities and equity
Liabilities
Secured mortgage and bond debt, net
$
629,328
$
646,827
Unsecured notes, net
2,377,453
2,375,603
Unsecured term loans, net
199,648
199,473
Unsecured revolving credit facility
520,700
371,100
Accounts payable and accrued expenses
69,705
85,070
Operating lease liabilities 2
495,627
486,631
Other liabilities 2
144,773
185,352
Total liabilities
4,437,234
4,350,056
Redeemable noncontrolling
interests
26,534
24,567
Equity
American Campus Communities, Inc. and
Subsidiaries
stockholders’ equity:
Common stock
1,386
1,375
Additional paid in capital
4,515,450
4,472,170
Common stock held in rabbi trust
(4,730
)
(3,951
)
Accumulated earnings and dividends
(1,457,273
)
(1,332,689
)
Accumulated other comprehensive loss
(18,908
)
(22,777
)
Total American Campus Communities, Inc.
and
Subsidiaries stockholders’ equity
3,035,925
3,114,128
Noncontrolling interests – partially owned
properties
38,748
42,409
Total equity
3,074,673
3,156,537
Total liabilities and equity
$
7,538,441
$
7,531,160
- For purposes of calculating net asset value ("NAV") at June 30,
2021, the company excludes other assets of approximately $9.0
million related to net deferred financing costs on its revolving
credit facility and the net value of in-place leases, as well as
operating lease right of use assets disclosed above.
- For purposes of calculating NAV at June 30, 2021, the company
excludes other liabilities of approximately $38.3 million related
to deferred revenue and fee income, as well as operating lease
liabilities disclosed above.
Table 2
American Campus Communities,
Inc. and Subsidiaries
Consolidated Statements of
Comprehensive Income
(dollars in thousands, except
share and per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2021
2020
2021
2020
(unaudited)
(unaudited)
Revenues
Owned properties
$
199,623
$
177,488
$
418,067
$
410,299
On-campus participating properties
5,221
4,101
14,179
14,810
Third-party development services
866
1,290
2,825
3,345
Third-party management services
2,811
2,668
6,172
6,497
Total revenues
208,521
185,547
441,243
434,951
Operating expenses (income)
Owned properties
95,703
85,749
189,694
178,223
On-campus participating properties
3,279
3,208
6,569
6,574
Third-party development and management
services
5,000
4,977
10,387
11,184
General and administrative 1
12,926
9,767
25,254
19,925
Depreciation and amortization
68,741
66,441
136,858
132,610
Ground/facility leases
3,435
2,893
6,643
6,962
Gain from disposition of real estate
—
—
—
(48,525
)
Total operating expenses
189,084
173,035
375,405
306,953
Operating income
19,437
12,512
65,838
127,998
Nonoperating income (expenses)
Interest income
352
870
572
1,721
Interest expense
(29,240
)
(27,168
)
(58,217
)
(54,951
)
Amortization of deferred financing
costs
(1,418
)
(1,255
)
(2,737
)
(2,542
)
Loss from extinguishment of debt 2
—
—
—
(4,827
)
Other nonoperating income
157
—
157
—
Total nonoperating expenses
(30,149
)
(27,553
)
(60,225
)
(60,599
)
(Loss) income before income taxes
(10,712
)
(15,041
)
5,613
67,399
Income tax provision
(341
)
(381
)
(681
)
(760
)
Net (loss) income
(11,053
)
(15,422
)
4,932
66,639
Net loss attributable to noncontrolling
interests
1,651
2,078
1,284
872
Net (loss) income attributable to ACC,
Inc. and
Subsidiaries common
stockholders
$
(9,402
)
$
(13,344
)
$
6,216
$
67,511
Other comprehensive income
(loss)
Change in fair value of interest rate
swaps and other
1,351
282
3,869
(9,519
)
Comprehensive (loss) income
$
(8,051
)
$
(13,062
)
$
10,085
$
57,992
Net (loss) income per share
attributable to ACC, Inc.
and Subsidiaries common
shareholders
Basic and Diluted
$
(0.07
)
$
(0.10
)
$
0.04
$
0.48
Weighted-average common shares
outstanding
Basic
138,048,659
137,613,560
137,884,442
137,545,365
Diluted
138,048,659
137,613,560
139,139,383
138,652,106
- The three months ended June 30, 2021 include $0.8 million
related to the settlement of a litigation matter and $1.3 million
in accelerated amortization of unvested restricted stock awards due
to the pending retirement of the company's President in August
2021. The six months ended June 30, 2021 include an estimated $2.0
million related to the anticipated settlement of a litigation
matter, $0.9 million in consulting, legal and other related costs
incurred in relation to stockholder engagement activities in
preparation for the company's 2021 annual stockholders' meeting,
and $1.8 million in accelerated amortization of unvested restricted
stock awards due to the pending retirement of the company's
President in August 2021. The six months ended June 30, 2020
include $1.1 million related to the settlement of a litigation
matter.
- The six months ended June 30, 2020 amount represents the loss
associated with the January 2020 redemption of the company's $400
million 3.35% Senior Notes originally scheduled to mature in
October 2020.
Table 3
American Campus Communities,
Inc. and Subsidiaries
Consolidated Statements of
Funds from Operations (“FFO”)
(unaudited, dollars in
thousands, except share and per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2021
2020
2021
2020
Net (loss) income attributable to ACC,
Inc. and Subsidiaries common stockholders
$
(9,402
)
$
(13,344
)
$
6,216
$
67,511
Noncontrolling interests' share of net
loss
(1,651
)
(2,078
)
(1,284
)
(872
)
Joint Venture ("JV") partners' share of
FFO
JV partners' share of net loss
1,634
2,046
1,334
1,130
JV partners' share of depreciation and
amortization
(1,902
)
(1,927
)
(3,794
)
(3,892
)
(268
)
119
(2,460
)
(2,762
)
Gain from disposition of real estate
—
—
—
(48,525
)
Total depreciation and amortization
68,741
66,441
136,858
132,610
Corporate depreciation 1
(706
)
(885
)
(1,455
)
(1,774
)
FFO attributable to common stockholders
and OP unitholders
56,714
50,253
137,875
146,188
Elimination of operations of on-campus
participating properties ("OCPPs")
Net loss (income) from OCPPs
1,135
2,206
(1,819
)
(1,500
)
Amortization of investment in OCPPs
(2,039
)
(2,045
)
(4,081
)
(4,082
)
55,810
50,414
131,975
140,606
Modifications to reflect operational
performance of OCPPs
Our share of net cashflow 2
534
254
673
1,114
Management fees and other
294
244
802
827
Contribution from OCPPs
828
498
1,475
1,941
Elimination of loss from extinguishment of
debt 3
—
—
—
4,827
Elimination of litigation settlement
expense 4
833
—
2,033
1,100
Stockholder engagement and other proxy
advisory costs 5
—
—
914
—
Executive retirement charges 6
1,299
—
1,837
—
Funds from operations-modified (“FFOM”)
attributable to common stockholders and OP unitholders
$
58,770
$
50,912
$
138,234
$
148,474
FFO per share - diluted
$
0.41
$
0.36
$
0.99
$
1.05
FFOM per share - diluted
$
0.42
$
0.37
$
0.99
$
1.07
Weighted-average common shares
outstanding - diluted
139,766,038
139,220,414
139,643,100
139,155,823
- Represents depreciation on corporate assets not added back for
purposes of calculating FFO.
- 50% of the properties’ net cash available for distribution
after payment of operating expenses, debt service (including
repayment of principal) and capital expenditures which is included
in ground/facility leases expense in the accompanying consolidated
statements of comprehensive income.
- The six months ended June 30, 2020 amount represents the loss
associated with the January 2020 redemption of the company's $400
million 3.35% Senior Notes originally scheduled to mature in
October 2020.
- Represents expenses associated with the actual or estimated
settlements of litigation matters that are included in general and
administrative expenses in the accompanying consolidated statements
of comprehensive income.
- Represents consulting, legal, and other related costs incurred
in relation to stockholder engagement activities in preparation for
the company’s 2021 annual stockholders' meeting.
- Represents accelerated amortization of unvested restricted
stock awards due to the pending retirement of the company's
President in August 2021.
Table 4
American Campus Communities,
Inc. and Subsidiaries
Owned Properties Results of
Operations1
(unaudited, dollars in
thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
$ Change
% Change
2021
2020
$ Change
% Change
Owned properties revenues
Same store properties
$
195,708
$
177,391
$
18,317
10.3
%
$
410,840
$
407,312
$
3,528
0.9
%
New properties
3,915
97
3,818
7,227
286
6,941
Sold properties and other 2
—
—
—
—
2,701
(2,701
)
Total revenues
$
199,623
$
177,488
$
22,135
12.5
%
$
418,067
$
410,299
$
7,768
1.9
%
Owned properties operating
expenses
Same store properties
$
92,457
$
84,890
$
7,567
8.9
%
$
183,973
$
175,955
$
8,018
4.6
%
New properties
3,175
811
2,364
5,579
1,150
4,429
Sold properties and other 2
71
48
23
142
1,118
(976
)
Total operating expenses
$
95,703
$
85,749
$
9,954
11.6
%
$
189,694
$
178,223
$
11,471
6.4
%
Owned properties net operating income
(loss)
Same store properties
$
103,251
$
92,501
$
10,750
11.6
%
$
226,867
$
231,357
$
(4,490
)
(1.9
%)
New properties
740
(714
)
1,454
1,648
(864
)
2,512
Sold properties and other 2
(71
)
(48
)
(23
)
(142
)
1,583
(1,725
)
Total net operating income
$
103,920
$
91,739
$
12,181
13.3
%
$
228,373
$
232,076
$
(3,703
)
(1.6
%)
- The same store grouping above represents properties owned and
operating for both of the entire years ended December 31, 2021 and
2020, which are not conducting or planning to conduct substantial
development, redevelopment, or repositioning activities, and are
not classified as held for sale as of June 30, 2021. Includes the
full operating results of properties owned through joint ventures
in which the company has a controlling financial interest and which
are consolidated for financial reporting purposes.
- Includes one property sold in 2020, as well as professional
fees related to the operation of consolidated joint ventures that
are included in owned properties operating expenses in the
accompanying consolidated statements of comprehensive income (refer
to Table 2). Does not include the allocation of payroll and other
administrative costs related to corporate management and
oversight.
Table 5
American Campus Communities,
Inc. and Subsidiaries
Outlook Summary (Q3 2021 and
FY 2021) 1
(dollars in thousands, except
share and per share data)
Q3 2021 Guidance
FY 2021 Guidance
Low
High
Low
High
Net (loss) income
$
(19,900
)
$
(14,500
)
$
10,400
$
29,900
Noncontrolling interests' share of net
loss
(2,200
)
(2,200
)
(3,300
)
(3,300
)
Joint Venture ("JV") partners' share of
FFO
JV partners' share of net loss
2,200
2,200
3,500
3,500
JV partners' share of depreciation and
amortization
(1,900
)
(1,900
)
(7,700
)
(7,700
)
300
300
(4,200
)
(4,200
)
Total depreciation and amortization
67,500
67,500
273,600
273,600
Corporate depreciation
(800
)
(800
)
(3,100
)
(3,100
)
FFO
44,900
50,300
273,400
292,900
Elimination of operations from on-campus
participating properties ("OCPP")
(100
)
(100
)
(11,000
)
(11,000
)
Contribution from OCPPs
800
800
3,100
3,100
Elimination of litigation settlement
expense 2
—
—
2,000
2,000
Stockholder engagement and other proxy
advisory costs 3
—
—
900
900
Executive Retirement charges 4
800
800
2,600
2,600
Funds from operations - modified
("FFOM")
$
46,400
$
51,800
$
271,000
$
290,500
Net (loss) income per share -
diluted
$
(0.14
)
$
(0.10
)
$
0.07
$
0.21
FFO per share - diluted
$
0.32
$
0.36
$
1.95
$
2.09
FFOM per share - diluted
$
0.33
$
0.37
$
1.93
$
2.07
Weighted-average common shares
outstanding - diluted
140,753,900
140,753,900
140,214,200
140,214,200
1.
The company believes that the financial
results for the three months ending September 30, 2021 and year
ending December 31, 2021 may be affected by a number of factors.
Such factors include:
• national and regional economic trends
and events;
• the success of our leasing activities
for the 2021-2022 academic year, which could be impacted as the
COVID-19 pandemic continues to evolve;
• the level of lease terminations, rent
refunds, and/or abatements granted to student and commercial
tenants;
• economic hardship experienced by student
and commercial tenants and its ultimate effect on rent collections
and thus the provision for uncollectible accounts;
• canceled or delayed third-party
development projects;
• reduced revenues at our
third-party managed properties resulting in reduced third-party
management fee income;
• the impact of any stimulus
payments that may be received by the company, our tenants, and/or
our University partners under the Coronavirus Aid, Relief, and
Economic Security Act (“CARES Act”) and any future similar
governmental actions;
• any increase in, or reduction to,
operating expenses as a result of COVID-19;
• the amount of leasing and related
fees earned for the 2021-2022 and 2022-2023 academic years, which
are affected by the timing and velocity of the company’s leasing
process;
• the timing and amount of any
acquisitions, dispositions or joint venture activity;
• interest rate risk;
• the timing of commencement and
completion of construction on owned development projects;
• university enrollment, funding
and policy trends;
• the amount of income recognized
by the taxable REIT subsidiaries and any corresponding income tax
expense;
• the outcome of legal proceedings
arising in the normal course of business; and
• the finalization of property tax
rates and assessed values in certain jurisdictions.
2.
Represents expenses associated with the
actual or estimated settlements of litigation matters that are
included in general and administrative expenses in the accompanying
consolidated statements of comprehensive income.
3.
Represents consulting, legal, and other
related costs incurred in relation to stockholder engagement
activities in preparation for the company’s 2021 annual
stockholders' meeting.
4.
Represents accelerated amortization of
unvested restricted stock awards due to the pending retirement of
the company's President in August 2021.
Category: Earnings
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210726005748/en/
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