Supplemental Analyst Package - Investor Relations

Transcription

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BRINGING
QUALITY
TOGETHER
Supplemental Analyst Package | 3Q-2012
October 22, 2012
AMERICAN CAMPUS COMMUNITIES |
TABLE OF CONTENTS
Financial Highlights ________________________________________________________________________________
1
Consolidated Balance Sheets _________________________________________________________________________
2
Consolidated Statements of Comprehensive Income ______________________________________________________
3
Consolidated Statements of Funds from Operations _______________________________________________________
4
Wholly-owned Property Results of Operations ___________________________________________________________
5
Seasonality of Operations ___________________________________________________________________________
6
Capital Structure __________________________________________________________________________________
7
Portfolio Overview _________________________________________________________________________________
8
Portfolio Overview - Detail by Property ________________________________________________________________
9
Owned Development Update _________________________________________________________________________
13
Mezzanine Investment Update _______________________________________________________________________
14
Third-party Development Update _____________________________________________________________________
15
Management Services Update ________________________________________________________________________
16
Investor Information _______________________________________________________________________________
17
FINANCIAL HIGHLIGHTS
$ in thousands, except share and per share data
Operating Data
Total revenues
Operating income
Net income attributable to ACC
Net income per share - basic
Net income per share - diluted
FFO
FFO per share—diluted
FFOM
FFOM per share—diluted
Operating Statistics
Debt to gross asset value2
Debt to total market capitalization3 4
Unencumbered asset value to unsecured debt 5
Secured debt to gross asset value
Interest coverage6
Net debt to EBITDA7
1.
2.
3.
4.
5.
6.
7.
Three Months Ended September 30,
2012
$ 118,807
15,502
627
28,878
0.32
29,395
0.32
1
1
1
1
2011
$ 95,200
15,839
1,641
0.02
0.02
23,725
0.33
24,028
0.34
$ Change
$ 23,607
(337)
(1,014)
Nine Months Ended September 30,
% Change
24.8%
(2.13%)
5,153
21.7%
5,367
22.3%
September 30, 2012
December 31, 2011
38.2%
29.5%
446.2%
25.9%
3.56
5.98
42.0%
30.4%
342.0%
27.5%
3.21
7.23
2012
$ 335,604
75,105
32,981
0.41
0.40
109,882
1.36
107,980
1.33
1
1
1
1
2011
$ 281,834
68,125
40,794
0.59
0.58
92,896
1.32
91,475
1.30
$ Change
$
53,770
6,980
(7,813)
% Change
19.1%
10.2%
16,986
18.3%
16,505
18.0%
Includes $4.7 million and $6.1 million for the three and nine months ended September 30, 2012, respectively, of acquisition-related costs such as broker fees, due diligence costs and legal and
accounting fees.
Gross asset value is the book value of the company’s total assets, calculated in accordance with generally accepted accounting principles, excluding accumulated depreciation and our on-campus
participating properties.
Excludes debt related to our on-campus participating properties totaling $76.8 million and $79.3 million as of September 30, 2012 and December 31, 2011, respectively, as well as net unamortized debt
premiums of $26.3 million and $5.1 million as of September 30, 2012 and December 31, 2011, respectively.
Market capitalization is calculated based on a common share price of $43.88 and $41.96 as of September 30, 2012 and December 31, 2011, respectively, and fully diluted common shares totaling
93,835,514 and 74,322,409 as of September 30, 2012 and December 31, 2011, respectively.
Unencumbered asset value is the sum of (i) the company’s undepreciated real estate assets which are not subject to secured debt; and (ii) all other assets, excluding accounts receivable and intangibles,
for such properties.
Based on earnings before interest, taxes, depreciation, and amortization (―EBITDA‖), as defined in the company’s Credit Facility Agreement, and cash interest expense of $203.2 million and $57.1 million,
respectively, for the four most recently completed fiscal quarters. Excludes interest associated with our on-campus participating properties and Hampton Roads unconsolidated joint venture. Includes our
share of interest expense related to debt from a joint venture in which we held a 10% interest through January 2012.
Net debt is calculated as total debt less cash on hand. Includes an additional $82.5 million of budgeted EBITDA for properties owned less than 12 months so that a full 12 months of EBITDA is reflected
AMERICAN CAMPUS COMMUNITIES | 1
CONSOLIDATED BALANCE SHEETS
$ in thousands
September 30, 2012
December 31, 2011
(unaudited)
Assets
Investments in real estate:
Wholly-owned properties, net
Wholly-owned properties held for sale
On-campus participating properties, net
Investments in real estate, net
C ash and cash equivalents
Restricted cash
Student contracts receivable, net
Other assets
Total assets
Liabilities and equity
Liabilities:
Secured mortgage, construction and bond debt
Unsecured term loan
Unsecured revolving credit facility
Secured agency facility
Accounts payable and accrued expenses
Other liabilities
Total liabilities
$
$
$
Redeemable noncontrolling interests
3,944,757
22,010
58,080
4,024,847
18,011
51,078
9,483
111,153
4,214,572
1,157,388
350,000
206,000
116,000
57,700
113,637
2,000,725
$
$
$
56,838
2,761,757
27,300
59,850
2,848,907
22,399
22,956
5,324
108,996
3,008,582
858,530
200,000
273,000
116,000
36,884
77,840
1,562,254
42,529
Equity:
American C ampus C ommunities, Inc. and
Subsidiaries stockholders' equity:
C ommon stock
917
2,470,737
(335,667)
(7,551)
Additional paid in capital
Accumulated earnings and dividends
Accumulated other comprehensive loss
Total American C ampus C ommunities, Inc. and
Subsidiaries stockholders' equity
Noncontrolling interests
Total equity
Total liabilities and equity
$
2,128,436
28,573
2,157,009
4,214,572
725
1,664,416
(286,565)
(3,360)
$
1,375,216
28,583
1,403,799
3,008,582
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Unaudited, $ in thousands, except share and per share data
2012
2011
$ Change
Revenues
Wholly-owned properties
On-c ampus partic ipating properties
Third-party development servic es
Third-party management servic es
Resident servic es
$
Total revenues
110,112
5,087
1,467
1,687
454
118,807
Operating expenses
Wholly-owned properties
On-c ampus partic ipating properties
Third-party development and management servic es
General and administrative
Deprec iation and amortization
Ground/fac ility leases
60,682
3,010
2,602
7,582
28,336
1,093
Total operating expenses
2
$
23,692
76
(101)
(107)
47
$
304,346
17,766
7,427
5,083
982
95,200
23,607
335,604
48,612
2,870
2,488
2,880
21,701
810
12,070
140
114
4,702
6,635
283
148,721
8,306
8,013
15,760
76,838
2,861
23,944
$
252,120
17,115
6,150
5,427
1,022
122,808
7,495
7,801
8,931
64,050
2,624
25,913
811
212
6,829
12,788
237
260,499
213,709
46,790
75,105
68,125
6,980
1
2
79,361
15,839
Nonoperating income and (expenses)
Interest inc ome
Interest expense
Amortization of deferred financ ing c osts
(Loss) inc ome from unc onsolidated joint ventures
Other nonoperating inc ome
429
(13,812)
(1,072)
136
167
(13,046)
(1,223)
(42)
-
262
(766)
151
42
136
1,358
(39,591)
(3,047)
444
14
374
(38,928)
(3,776)
(67)
-
(14,319)
(14,144)
(175)
(40,822)
(42,397)
1,183
(181)
1,695
(88)
(512)
(93)
34,283
(493)
25,728
(373)
Income from continuing operations
Discontinued operations
Inc ome attributable to disc ontinued operations
Gain from disposition of real estate
33,790
25,355
20
185
-
(165)
-
961
83
1,924
14,574
(963)
(14,491)
185
(165)
1,044
16,498
(15,454)
1,792
(151)
(770)
(244)
34,834
(1,853)
20
$
$
Net income per share attributable to
American Campus Communities, Inc. and
Subsidiaries common stockholders
Basic
Diluted
Weighted-average common shares
outstanding
Basic
Diluted
8,555
(120)
(605)
1,022
(395)
Other comprehensive (loss) income
Change in fair value of interest rate swaps
Comprehensive (loss) income
1,575
1,607
Total discontinued operations
Net income attributable to American
Campus Communities, Inc. and Subsidiaries
984
(663)
729
511
14
1,002
-
Net income
Net inc ome attributable to nonc ontrolling interests
52,226
651
1,277
(344)
(40)
53,770
15,502
(337)
$
281,834
103,305
Total nonoperating expenses
2.
1
86,420
5,011
1,568
1,794
407
Operating income
Inc ome before inc ome taxes and disc ontinued
operations
Inc ome tax provision
1.
$
2012
2011
$ Change
627
8,435
41,853
(1,059)
(7,019)
(794)
$
1,641
$
(1,014)
$
32,981
$
40,794
$
(7,813)
(2,386)
(1,759)
$
468
2,109
$
(2,854)
(3,868)
$
(4,191)
28,790
$
1,395
42,189
$
(5,586)
(13,399)
$
-
$
0.02
$
0.41
$
0.59
$
-
$
0.02
$
0.40
$
0.58
89,169,868
70,008,276
79,404,323
68,551,434
89,751,495
70,561,514
80,009,463
69,120,438
Wholly-owned properties operating expenses for the three and nine months ended September 30, 2012 include $0.9 million and $1.6 million, respectively, of acquisition-related costs such as broker fees,
due diligence costs and legal and accounting fees.
General and administrative expenses for the three and nine months ended September 30, 2012 include $3.8 million and $4.5 million, respectively, of acquisition-related costs such as due diligence costs
and legal and accounting fees related to the acquisition of a 15-property portfolio from Campus Acquisitions in September 2012.
CONSOLIDATED STATEMENTS OF FUNDS FROM OPERATIONS
Unaudited, $ in thousands, except share and per share data
2012
2011
$ Change
Net income attributable to American Campus Communities,
Inc. and Subsidiaries
Noncontrolling interests 2
Gain from disposition of real estate
Loss (income) from unconsolidated joint ventures
FFO from unconsolidated joint ventures 3
Real estate related depreciation and amortization
Funds from operations ("FFO")
$
Elimination of operations of on-campus participating properties
Net loss (income) from on-campus participating properties
Amortization of investment in on-campus participating properties
FFO per share - diluted
FFOM per share - diluted 7
Weighted average common shares outstanding - diluted
1.
2.
3.
4.
5.
6.
7.
1
$
919
(1,167)
28,630
Modifications to reflect operational performance of on-campus
participating properties
Our share of net cash flow4
Management fees
Impact of on-campus participating properties
Elimination of gain on debt restructuring unconsolidated joint venture5
Loss on remeasurement of equity method investment 6
Funds from operations-modified ("FFOM")
627
129
28,122
28,878
$
$
$
1,641
151
42
(26)
21,917
23,725
$
770
(1,123)
23,372
(1,014)
(22)
(42)
26
6,205
5,153
441
215
656
88
21
109
29,395
24,028
5,367
0.32
0.32
90,764,959
$
$
0.33
0.34
71,580,468
$
149
(44)
5,258
529
236
765
$
2012
2011
$ Change
$
32,981
798
(83)
(444)
429
76,201
109,882
1
$
(535)
(3,481)
105,866
$
$
$
1.36
1.33
81,011,069
$
(576)
(3,330)
88,990
1,602
814
2,416
(424)
122
107,980
40,794
1,059
(14,574)
67
(19)
65,569
92,896
$
$
$
(7,813)
(261)
14,491
(511)
448
10,632
16,986
41
(151)
16,876
1,715
770
2,485
(113)
44
(69)
91,475
(424)
122
16,505
$
1.32
1.30
70,152,495
Net income for the three and nine months ended September 30, 2012 includes $4.7 million and $6.1 million, respectively, of acquisition-related costs such as broker fees, due diligence costs and legal and
accounting fees.
The adjustment to FFO for noncontrolling interests’ share of net income excludes $0.3 million and $1.1 million for the three and nine months ended September 30, 2012, respectively, of income
attributable to the noncontrolling partner in The Varsity, a property purchased in December 2011 from a seller that retained a 20.5% noncontrolling interest in the property.
Represents our 10% share of FFO from a joint venture with Fidelity (―Fund II‖) in which we were a noncontrolling partner. In January 2012, we purchased the full ownership interest in the one remaining
property owned by Fund II (University Heights). Subsequent to the acquisition, the property is now wholly-owned and is consolidated by the company.
50% of the properties’ net cash available for distribution after payment of operating expenses, debt service (including repayment of principal) and capital expenditures. Represents amounts accrued for
the interim periods.
Immediately prior to our purchase of University Heights from Fund II (see Note 3), Fund II negotiated a Settlement Agreement with the lender of the property’s mortgage loan whereby the lender agreed
to accept a discounted amount that was less than the original principal amount of the loan as payment in full. Accordingly, Fund II recorded a gain on debt restructuring to reflect the discounted payoff.
Our 10% share of such gain is reflected above as an adjustment to FFOM.
Represents a non-cash loss recorded to remeasure our equity method investment in Fund II to fair value as a result of our purchase of the full ownership interest in University Heights from Fund II in
January 2012.
Excluding the acquisition-related costs mentioned in note 1, FFOM per fully diluted share was $0.38 and $1.41 for the three and nine months ended September 30, 2012, respectively.
WHOLLY-OWNED PROPERTY RESULTS OF OPERATIONS
$ in thousands
2012
2011
$ Change
% Change
2012
2011
$ Change
% Change
Wholly-owned property revenues
Same store properties 1
$
87,300
$
111,557
$
47,700
New properties
Total revenues2
$
84,884
$
$
24,257
$
2,416
87,734
$
46,843
$
2,850
2.8%
$
259,393
23,823
27.2%
$
308,237
857
1.8%
$
123,979
21,407
$
251,835
$
7,558
$
255,777
$
52,460
20.5%
$
121,200
$
2,779
2.3%
48,844
3,942
3.0%
44,902
Wholly-owned property operating expenses
New properties
Total operating expenses
13,595
3
2,263
11,332
26,199
3
2,847
23,352
$
61,295
$
49,106
$
12,189
24.8%
$
150,178
$
124,047
$
26,131
21.1%
$
39,600
$
38,041
$
1,559
4.1%
$
135,414
$
130,635
$
4,779
3.7%
$
50,262
$
38,628
$
11,634
30.1%
$
158,059
$
131,730
$
26,329
Wholly-owned property net operating income
New properties
Total net operating income
1.
2.
3.
10,662
587
10,075
22,645
1,095
21,550
20.0%
Includes Brookstone Village and Campus Walk located in Wilmington, North Carolina, which were sold in October 2012 and are classified within discontinued operations on the accompanying consolidated
statements of comprehensive income. Revenues for these properties totaled $0.9 million for the three months ended September 30, 2012 and 2011, respectively. Operating expenses for these properties
totaled $0.6 million and $0.5 million for the three months ended September 30, 2012 and 2011, respectively. Excluding these two properties from the same store property grouping would have resulted in
an increase in same store net operating income of 4.2%.
Includes revenues that are reflected as Resident Services Revenue on the accompanying consolidated statements of comprehensive income.
Operating expenses for the three and nine months ended September 30, 2012 include $0.9 million and $1.6 million, respectively, of acquisition-related costs such as broker fees, due diligence costs and
legal and accounting fees.
SEASONALITY OF OPERATIONS1
$ in thousands, except for per bed amounts
Three Months Ended
September 30, 2011
December 31, 2011
March 31, 2012
June 30, 2012
September 30, 2012
Total/Weighted Average2
Last 12 Months
Same store properties3
Revenue per occupied bed
Rental revenue per occupied bed per month
4
Other income per occupied bed per month
Total revenue per occupied bed
$
497
$
55
$
Average number of owned beds
552
$
31
$
53,160
Average physical occupancy for the quarter
524
555
$
35
$
53,160
96.3%
524
559
$
39
$
53,160
98.5%
518
557
$
521
$
561
55
$
53,160
98.5%
518
573
40
53,160
94.8%
53,160
95.4%
96.8%
Total revenue
$
84,884
$
87,179
$
87,879
$
84,214
$
87,300
$
346,572
Property operating expenses
Net operating income
$
46,843
38,041
$
37,527
49,652
$
37,977
49,902
$
38,373
45,841
$
47,700
39,600
$
161,577
184,995
Operating margin
44.8%
57.0%
56.8%
54.4%
45.4%
53.4%
5
New properties
4
Other income per occupied bed per month
$
471
$
77
548
$
531
$
57
588
$
581
$
85
666
$
586
$
75
661
1,799
4,500
6,924
7,295
96.4%
92.9%
87.1%
86.7%
Total revenue
$
Operating margin
2,850
$
2,264
7,360
$
3,973
12,055
$
5,746
12,532
$
599
$
582
$
64
663
$
652
70
12,791
7,878
95.4%
$
6,787
24,257
91.2%
$
13,595
56,204
30,101
$
586
20.6%
$
3,387
46.0%
$
6,309
52.3%
$
5,745
45.8%
$
10,662
44.0%
$
26,103
46.4%
$
496
$
524
$
530
$
526
$
534
$
529
$
573
ALL PROPERTIES
Other income per occupied bed per month 4
56
$
$
1.
2.
3.
4.
5.
87,734
38,627
44.0%
$
$
94,539
53,039
56.1%
$
$
99,934
56,211
56.2%
$
$
96,746
51,586
53.3%
44
61,038
95.4%
$
45,160
$
591
65,951
93.8%
43,723
$
569
57
60,455
97.2%
41,500
$
570
43
60,084
98.1%
49,107
$
557
40
57,660
96.3%
Operating margin
$
54,959
Total revenue
552
33
111,557
96.1%
$
61,295
$
50,262
45.1%
402,776
191,678
$
211,098
52.4%
Excludes Pirates Cove, sold in April 2012. Includes Brookstone Village and Campus Walk, which were sold in October 2012 and are classified within discontinued operations on the accompanying consolidated statements
of comprehensive income.
For the four most recently completed fiscal quarters.
Includes all properties owned during the full year ended December 31, 2011.
Other income is all income other than Net Student Rent. This includes, but is not limited to, utility income, damages, parking income, summer conference rent, application and administration fees, income from retail
tenants, etc.
Includes the following properties opened or acquired in 2011 and 2012: Villas at Babcock, Villas on Sycamore, Lobo Village, University Village Northwest, Eagles Trail, U Club Townhomes on Woodward, 26 West, The
Varsity, University Shoppes, University Heights-Knoxville, Avalon Heights, University Commons, The Block, The Retreat, University Edge, the 15-property Campus Acquisitions portfolio acquired in September 2012, and
11 properties that completed construction and opened for operations in August and September 2012. Also includes Campus Trails, a 480-bed property that incurred business interruption due to significant property
damage resulting from a fire in April 2010. The 72 beds damaged by the fire reopened for occupancy in August 2011.
CAPITAL STRUCTURE AS OF SEPTEMBER 30, 2012
$ in thousands, except share and per share data
1.
2.
3.
4.
5.
6.
Gross asset value is the book value of the company’s total assets calculated in accordance with generally accepted accounting principles, excluding accumulated depreciation and our on-campus
participating properties.
Unencumbered asset value is the sum of (i) the company’s undepreciated real estate assets which are not subject to secured debt; and (ii) all other assets, excluding accounts receivable and intangibles,
Excludes debt related to our on-campus participating properties totaling $76.8 million with a weighted average interest rate of 7.2% and average term maturity of 7.6 years. Also excludes net
unamortized debt premiums of $26.3 million.
Based on share price of $43.88 and fully diluted share count of 93,835,514 as of September 30, 2012. Assumes conversion of 1,278,490 common and preferred Operating Partnership units and 574,656
unvested restricted stock awards.
Based on earnings before interest, taxes, depreciation, and amortization (―EBITDA‖), as defined in the company’s Credit Facility Agreement, and cash interest expense of $203.2 million and $57.1 million,
respectively, for the four most recently completed fiscal quarters. Excludes interest associated with our on-campus participating properties and Hampton Roads unconsolidated joint venture. Includes our
share of interest expense related to debt from a joint venture in which we held a 10% interest through January 2012.
Net debt is calculated as total debt less cash on hand as of September 30, 2012. Includes an additional $82.5 million of budgeted EBITDA for properties owned less than 12 months so that a full 12
months of EBITDA is reflected for such properties.
PORTFOLIO OVERVIEW
Summary
Physical Occupancy at
September 30,
Units
Beds
2012
2011
Fall 2012 Initial
Rental Rate
Change
Same Store Wholly-owned Properties 2
17,910
56,912
97.4%
98.2%
3.5%
3.4%
New Wholly-owned Properties 3
6,673
20,022
95.5%
n/a
n/a
1,915
6,703
95.2%
n/a
n/a
Property Type
New Development Properties
4
Fall 2012 Final
Rental Rate
Change
Rental Revenue per Occupied
Bed for Academic Year1
2012/2013
2011/2012
$
538.38
$
520.78
n/a
$
678.38
n/a
n/a
$
599.88
n/a
2,260
6,740
97.3%
n/a
n/a
n/a
$
704.70
n/a
Campus Acquisitions Portfolio 6
2,498
6,579
93.9%
n/a
n/a
n/a
$
732.51
n/a
Wholly-owned Properties - Total
24,583
76,934
96.9%
n/a
n/a
n/a
$
574.17
n/a
On-campus Participating Properties
1,863
4,519
99.6%
99.8%
New Acquisition Properties
1.
2.
3.
4.
5.
6.
5
Represents average rental revenue per occupied bed for the academic years presented.
Includes Brookstone Village and Campus Walk located in Wilmington, North Carolina, which were sold in October 2012 and are classified within discontinued operations on the accompanying consolidated
statements of comprehensive income.
Two properties currently undergoing redevelopment (U Club Townhomes on Woodward and University Shoppes) are excluded from the new property grouping for both periods presented.
Includes 11 properties that completed construction and opened for operations in August and September 2012.
Includes the following properties: (1) 26 West, a 1,026-bed property purchased in December 2011; (2) The Varsity, a 901-bed property purchased in December 2011; (3) University Heights, a 636-bed
property purchased from one of the Fidelity Joint Ventures in January 2012; (4) Avalon Heights, a 754-bed property purchased in May 2012; (5) University Commons, a 480-bed property purchased in
June 2012; (6) The Block, a 1,555-bed property purchased in August 2012; and (7) The Retreat, a 780-bed property purchased in September 2012. Also includes University Edge, a 608-bed property that
is subject to a pre-sale agreement and completed construction and opened for occupancy in August 2012. The company is consolidating this property for financial reporting purposes and is obligated to
purchase the property now that the third-party developer has completed construction of the property. The company anticipates closing on the purchase of University Edge in October 2012.
The company acquired this 15-property portfolio in September 2012.
PORTFOLIO OVERVIEW
Detail – properties with rental rate growth above 3%
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12-13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34-35.
36-38.
39.
40.
Property
Royal Lexington
2nd Ave Centre
Aztec Corner
Eagles Trail
Nittany Crossing
University Crossings
Campus Trails
Brookstone Village
Campus Corner
The Callaway House
Hawks Landing
Willowtree Apartments and Towers
Campus Walk
University Greens
Lions Crossing
University Walk
The Outpost San Marc os
University Village at Boulder Creek
University Cresc ent
State College Park
The Edge
The Club
The Edge
The Village at Blac ksburg
The View
University Mills
University Meadows
The Centre
Vista del Sol-ACE
Abbott Plac e
Lobo Village-ACE
Campus Way
College Club Townhomes
University Village
University Club
Barrett Honors College-ACE
Location
Lexington, KY
Gainesville, FL
San Diego, CA
Hattiesburg, MS
State College, PA
Philadelphia, PA
Starkville, MS
Wilmington, NC
Bloomington, IN
College Station, TX
Oxford, OH
Ann Arbor, MI
Wilmington, NC
Norman, OK
State College, PA
Charlotte, NC
San Marc os, TX
Boulder, CO
Baton Rouge, LA
State College, PA
Charlotte, NC
Athens, GA
Orlando, FL
Blac ksburg, VA
Linc oln, NE
Cedar Falls, IA
Mt. Pleasant, MI
Kalamazoo, MI
Tempe, AZ
East Lansing, MI
Albuquerque, NM
Tusc aloosa, AL
Tallahassee, FL
Tallahassee, FL
Gainesville, FL
Tempe, AZ
September 30,
2012
2011
97.8%
98.4%
99.5%
99.4%
98.3%
98.5%
98.7%
80.1%
99.3%
99.4%
99.4%
99.4%
97.9%
99.0%
102.5%
102.5%
99.2%
99.1%
104.1%
103.7%
98.8%
99.0%
99.5%
96.9%
107.9%
105.5%
98.8%
98.8%
99.4%
99.4%
99.0%
99.2%
99.0%
99.6%
98.7%
98.7%
97.2%
98.4%
99.3%
99.5%
98.9%
98.8%
98.1%
97.9%
98.6%
99.6%
99.5%
99.6%
100.0%
100.0%
96.5%
99.0%
98.5%
98.5%
99.1%
99.4%
97.6%
98.8%
99.4%
99.4%
99.0%
99.5%
98.8%
98.1%
98.3%
96.1%
99.4%
99.2%
98.1%
98.7%
96.7%
97.4%
Fall 2012
Rental Rate
Change
15.8%
10.0%
6.6%
6.3%
6.2%
6.2%
5.8%
5.7%
5.7%
5.4%
5.3%
5.2%
5.2%
5.1%
5.1%
4.9%
4.9%
4.8%
4.8%
4.8%
4.8%
4.8%
4.7%
4.7%
4.7%
4.6%
4.6%
4.4%
4.4%
4.4%
4.3%
4.2%
4.1%
4.1%
4.1%
4.1%
PORTFOLIO OVERVIEW
Detail – properties with rental rate growth above 3%, continued
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59-61.
62.
63.
64.
65-66.
67.
Property
Location
University Trails
Lubboc k, TX
Sunnyside Commons
Morgantown, WV
Newtown Crossing
Lexington, KY
University Heights
Birmingham, AL
University Oaks
Columbia, SC
The Estates
Gainesville, FL
University Village
Fresno, CA
Uptown
Denton, TX
Sanc tuary Lofts
San Marc os, TX
University Gables
Murfreesboro, TN
The Highlands
Reno, NV
Lakeside
Athens, GA
Tower at 3rd
Champaign, IL
University Pines
Statesboro, GA
Peninsular Plac e
Ypsilanti, MI
The Enc lave
Bowling Green, OH
University Plac e
Charlottesville, VA
Aggie Station
Bryan, TX
The Summit and Jac ob Heights
Mankato, MN
Callaway Villas
College Station, TX
The Woods
Murfreesboro, TN
Chapel View
Chapel Hill, NC
University Club Townhomes
Tallahassee, FL
The Village on Sixth Avenue
Huntington, WV
Subtotal - Properties With Rental Rate
Growth Above 3%
September 30,
2012
2011
96.5%
98.2%
100.6%
100.6%
99.4%
99.2%
99.4%
99.4%
99.1%
99.1%
98.3%
99.3%
95.8%
98.0%
97.0%
97.0%
98.2%
98.2%
92.0%
98.9%
98.9%
99.2%
95.9%
98.2%
98.9%
98.9%
98.7%
99.5%
99.4%
99.2%
98.3%
98.5%
90.7%
80.7%
100.0%
99.3%
98.6%
97.8%
99.3%
99.9%
95.7%
97.5%
98.0%
97.8%
95.8%
99.5%
94.5%
97.3%
98.4%
98.3%
Fall 2012 Rental
Rate Change
4.1%
4.0%
4.0%
3.9%
3.8%
3.8%
3.8%
3.7%
3.7%
3.7%
3.6%
3.6%
3.5%
3.5%
3.4%
3.4%
3.4%
3.3%
3.3%
3.3%
3.3%
3.1%
3.1%
3.0%
4.6%
PORTFOLIO OVERVIEW
Detail – properties with rental rate growth between 0% and 2.99%
and properties reducing rental rates
September 30,
Property
Properties With Rental Rate Growth
Between 0% and 2.99%:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
The Village at Science Drive
University Village
University Village Northwest-ACE
Villas at Babcock
Chapel Ridge
Royal Village
Olde Towne University Square
Raiders Crossing
Burbank Commons
The Outpost San Antonio
Northgate Lakes
Campus Ridge
GrandMarc Seven Corners
The Village at Alafaya Club
University Village-Temple
Blanton Common
Entrada Real
Villas on Sycamore
University Centre
Cityparc
University Manor
University Pointe
Raiders Pass
Subtotal - Properties With Rental Rate
Growth Between 0% and 2.99%
Properties Reducing Rental Rates:
1.
South View Apartments
2.
Pirates Place Townhomes
3.
Villas at Chestnut Ridge
4.
Stone Gate
5.
University Village at Sweethome
6.
The Commons
Subtotal - Properties Reducing Rental
Rates
Total - Same Store Wholly-owned
Properties
Location
Orlando, FL
Sacramento, CA
Prairie View, TX
San Antonio, TX
Chapel Hill, NC
Gainesville, FL
Toledo, OH
Murfreesboro, TN
Baton Rouge, LA
San Antonio, TX
Oviedo, FL
Johnson City, TN
Minneapolis, MN
Orlando, FL
Philadelphia, PA
Valdosta, GA
Tucson, AZ
Huntsville, TX
Newark, NJ
Denton, TX
Greenville, NC
Lubbock, TX
Lubbock, TX
Harrisonburg, VA
Greenville, NC
Amherst, NY
Harrisonburg, VA
Amherst, NY
Harrisonburg, VA
2012
2011
Fall 2012 Rental
Rate Change
98.0%
100.5%
100.0%
96.5%
98.9%
98.0%
100.2%
91.3%
97.2%
90.7%
97.0%
88.8%
126.4%
96.4%
83.2%
82.9%
87.1%
95.7%
98.2%
96.7%
97.7%
97.4%
84.2%
99.3%
104.1%
100.0%
99.5%
93.6%
97.1%
100.2%
99.6%
95.7%
100.0%
99.4%
95.5%
125.7%
99.3%
98.9%
99.0%
99.4%
96.5%
98.6%
98.3%
93.5%
95.0%
97.5%
2.9%
2.9%
2.9%
2.8%
2.6%
2.5%
2.5%
2.4%
2.3%
2.3%
2.2%
2.1%
2.1%
2.0%
1.9%
1.9%
1.6%
1.5%
1.3%
1.1%
0.9%
0.7%
0.3%
94.9%
99.0%
2.2%
98.3%
91.5%
98.9%
96.3%
99.2%
96.2%
98.4%
93.2%
99.3%
93.5%
90.3%
94.9%
-0.3%
-0.5%
-3.3%
-4.2%
-5.3%
-5.4%
97.1%
94.9%
-2.8%
97.4%
98.2%
3.4%
PORTFOLIO OVERVIEW
Detail – new wholly-owned properties
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
1.
2.
3.
4.
5.
6.
7.
8.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Property
University Pointe at College Station-ACE
Casas del Rio-ACE
Villas on Rensch
U Club on Frey
The Villas at Vista del Sol-ACE (Triad)
The Suites-ACE
Casa de Oro-ACE (Triad)
Hilltop Townhomes-ACE
Campus Edge on UTA Boulevard
The Village at Overton Park
U Club Townhomes on Marion Pugh
Subtotal - New Development
Properties
Location
Portland, OR
Albuquerque, NM
Amherst, NY
Kennesaw, GA
Tempe, AZ
Flagstaff, AZ
Tempe, AZ
Flagstaff, AZ
Arlington, TX
Lubbock, TX
College Station, TX
University Commons
The Varsity 1
Avalon Heights
University Heights
University Edge
The Block
The Retreat
26 West
Subtotal - New Acquisition
Properties
Minneapolis, MN
College Park, MD
Tampa, FL
Knoxville, TN
Kent, OH
Austin, TX
San Marcos, TX
Austin, TX
Icon Plaza
Chauncey Square
309 Green
Lofts54
CampusTown Rentals
CampusTown
Garnet River Walk
River Mill
Landmark
922 Place
Vintage West Campus
Texan
The Castilian
Bishops Square
Union
Subtotal - Campus Acquisition
Portfolio
Irvine, CA
West Lafayette, IN
Champaign, IL
Champaign, IL
Champaign, IL
Ames, IA
Columbia, SC
Athens, GA
Ann Arbor, MI
Tempe, AZ
Austin, TX
Austin, TX
Austin, TX
San Marcos, TX
Waco, TX
Total - New Wholly-owned
Properties
Total - All Wholly-owned
Properties
1.
September 30, 2012
87.0%
99.5%
99.0%
99.1%
99.0%
99.1%
57.0%
99.3%
100.0%
98.7%
99.4%
95.2%
112.9%
93.0%
99.9%
86.9%
90.3%
98.6%
98.6%
99.5%
97.3%
104.0%
87.3%
90.1%
88.4%
94.9%
100.7%
98.7%
84.8%
101.3%
61.1%
86.8%
100.0%
105.5%
88.3%
99.2%
93.9%
95.5%
96.9%
The company owns a 79.5% interest in this property.
OWNED DEVELOPMENT UPDATE
$ in thousands
RECENTLY COMPLETED PROJECTS
Project
Casas del Rio
Project
Type
ACE
Location
Albuquerque, NM
Primary University
Served
Univ. of New Mexic o
Total Project
Cost
$
40,600
Opened for
Occupancy
August 2012
The Suites
ACE
Flagstaff, AZ
Northern Arizona Univ.
Hilltop Townhomes
ACE
Flagstaff, AZ
Northern Arizona Univ.
550
27,500
August 2012
576
31,700
U Club on Frey
Off-c ampus
Kennesaw, GA
August 2012
Kennesaw State Univ.
456
22,200
Campus Edge on UTA Blvd
Off-c ampus
Arlington, TX
August 2012
Univ. of TX at Arlington
488
24,900
U Club Town. on Marion Pugh
Off-c ampus
August 2012
College Station, TX Texas A&M Univ.
640
34,100
Villas on Rensc h
August 2012
Off-c ampus
Amherst, NY
Univ. at Buffalo
610
44,800
August 2012
The Village at Overton Park
Off-c ampus
Lubboc k, TX
Texas Tec h Univ.
612
35,500
August 2012
Casa de Oro
ACE
Glendale, AZ
Arizona State Univ.
365
12,300
August 2012
The Villas at Vista del Sol
ACE
Tempe, AZ
Arizona State Univ.
400
20,800
August 2012
Univ. Pointe at College Station
ACE
Portland, OR
Portland State Univ.
978
87,000
September 2012
Beds
1,028
6,703
$
381,400
PROJECTS UNDER CONSTRUCTION
Project
Type
ACE
Location
Tempe, AZ
Primary University
Served
Arizona State Univ.
The Callaway House
Off-c ampus
Austin, TX
Chestnut Square
ACE
U Club on Woodward
Town. at Overton Park
Project
Estimated
Project Cost
$
50,300
As of September 30, 2012
Land and
Total Costs
1
%
Complete 3
15%
Scheduled
Completion
August 2013
Beds
816
72
Incurred
$
11,396
The Univ. of TX at Austin
219
753
60,100
16,393
409
16,802
29%
August 2013
Philadelphia, PA
Drexel Univ.
220
861
97,600
29,745
100
29,845
31%
September 2013
Off-c ampus
Tallahassee, FL
Florida State Univ.
112
448
29,000
3,289
7,013
10,302
16%
August 2013
Off-c ampus
Lubboc k, TX
Texas Tec h Univ.
112
448
29,200
4,258
7,868
12,126
23%
August 2013
601 Copeland
Off-c ampus
Tallahassee, FL
Florida State Univ.
81
283
21,200
2,227
1,582
3,809
7%
August 2013
Prairie View A&M Phase VII5
ACE
Prairie View, TX
Prairie View A&M Univ.
96
336
15,600
-
-
-
0%
August 2013
1,081
3,945
$
364
1,313
$
0%
August 2014
364
1,313
$
Manzanita Hall(Triad)
SUBTOTAL - 2013 DELIVERIES
University Shoppes 6
Off-c ampus
Orlando, FL
Univ. of Central Florida
SUBTOTAL - 2014 DELIVERIES
303,000
112,300
112,300
$
$
CIP
11,324
Other2
Units
241
4
67,236
$
-
$
-
$
$
$
$
17,044
25,700
25,700
$
$
$
84,280
25,700
25,700
OWNED DEVELOPMENT PIPELINE 7 8
Kennesaw State Univ. Phase II
Project
Type
Off-c ampus
Location
Kennesaw, GA
Primary University
Served
Kennesaw State Univ.
Texas A&M University
ACE
College Station, TX Texas A&M Univ.
Carbondale Development
Off-c ampus
Carbondale, IL
Southern Illinois Univ.
West Virginia University
ACE
Morgantown, WV
West Virginia Univ.
Anticipated
Commencement
Q2 2013
Approx.
Targeted Beds
408
Q2 2013
TBD
TBD
TBD
Targeted
Completion
August 2014
784
36,300
August 2014
650
32,100
TBD
1,842
1.
2.
3.
4.
5.
6.
7.
8.
9.
Estimated
Project Cost9
$
23,200
TBD
$
TBD
91,600
The total construction in progress (―CIP‖) balance above excludes $1.3 million related to ongoing renovation projects at operating properties, as well as the CIP balance of $4.1 million related to the Townhomes at
Newtown Crossing property in Lexington, KY that is discussed on page 14.
Consists of amounts incurred to purchase the land for off-campus development projects, as well as any other development-related expenditures not included in CIP such as deposits, furniture, etc.
Based on costs incurred under the general construction contract as of September 30, 2012.
This project consists of the redevelopment of an existing student housing high-rise building into a new residence hall product, utilizing the existing building structure.
Execution of this project’s ground lease agreement and construction commencement occurred in October 2012.
This project was purchased in July 2011. In October 2012, demolition of the existing retail center began in connection with the development of a new mixed-use community.
Does not include undeveloped land parcels in 4 university markets totaling $22.3 million.
Commencement of owned off-campus development projects is subject to final determination of feasibility, execution and closing on definitive agreements, municipal approval processes, fluctuations in the
construction market, and current capital market conditions. ACE awards provide the company with the opportunity to exclusively negotiate with the subject universities. Commencement of ACE projects is subject to
various levels of university board approval, final determination of feasibility, execution and closing on definitive agreements, municipal approval processes, fluctuations in the construction market, and current capital
market conditions.
Estimated project costs include land and other predevelopment costs of $9.7 million incurred as of September 30, 2012 for owned development pipeline projects.
MEZZANINE INVESTMENT UPDATE
$ in thousands
University Edge1
Location
Kent, OH
Primary
University
Served
Kent State Univ.
Oxford Commons2
Oxford, OH
The Retreat3
San Marcos, TX
Project
Town. at Newtown Crossing 4 Lexington, KY
Mezzanine
Investment
$
4,500
1.
2.
3.
4.
Actual or
Targeted
Completion
August 2012
Units
201
Beds
608
Miami Univ.
184
456
-
Option
21,350
August 2012
Option Not Exercised
Texas State Univ.
187
780
-
Option
52,000
August 2012
Purchased September 2012
Univ. of Kentucky
152
608
2,000
Pre-sale
38,750
August 2013
Under Construction
$
6,500
Structure
Pre-sale
Purchase
Price
$
31,100
Status
To Be Purchased October 2012
$ 143,200
The company previously provided mezzanine financing to a private developer and was obligated to purchase the property once construction was completed and certain closing conditions were met. The
property opened for operations in August 2012 and the company anticipates closing on the purchase of the property in October 2012. As of September 30, 2012, the company is including this property in
its consolidated financial statements. Therefore, as of September 30, 2012, the company has included the following amounts in its consolidated balance sheet: land of $4.8 million, building and
improvements of $23.6 million, furniture, fixtures, and equipment of $0.8 million, and construction loan payable of $22.2 million.
In March 2011, the company provided mezzanine financing of $4.0 million to a private developer, while also retaining an option to purchase the property upon completion. The developer was responsible
for leasing, management, and initial operations of the property. The developer paid interest on the mezzanine investment amount on a monthly basis until March 2012, at which time the original
mezzanine investment amount plus accrued but unpaid interest was repaid in full. During the third quarter 2012, the company chose not to exercise our option to purchase this property.
The company previously provided mezzanine financing to a private developer, while also retaining an option to purchase the property upon completion. The developer was responsible for leasing,
management, and initial operations of the property, and was required to pay interest on the mezzanine investment on a monthly basis. The developer completed construction of the property in August
2012, at which time the company chose to exercise our option to purchase the property. We closed on the purchase of this property in September 2012, at which time our mezzanine investment (plus all
accrued but unpaid interest) was credited to the company in connection with the purchase.
In July 2012, the company provided mezzanine financing to a private developer and is obligated to purchase the property as long as certain construction completion deadlines are met. The company is
responsible for leasing, management, and initial operations of the project while the third-party developer retains the development risk. As of September 30, 2012, the company is including this property in
its consolidated financial statements. Therefore, as of September 30, 2012, the company has included the following amounts in its consolidated balance sheet: land of $7.5 million, construction in
progress of $4.1 million, and construction loan payable of $8.5 million.
THIRD-PARTY DEVELOPMENT UPDATE
$ in thousands
Development services revenue
% of total revenue
$
2012
2011
$ Change
1,467
$
1,568
$
(101)
1.2%
1.6%
$
2012
2011
$ Change
7,427
$
6,150
$
1,277
2.2%
2.2%
RECENTLY COMPLETED PROJECTS
Project
Location
Primary University Served
Units
Beds
Cardinal Court
Normal, IL
Illinois State University
228
896
Northern Illinois University
DeKalb, IL
Northern Illinois University
126
Bison Run Village
Laramie, WY
University of Wyoming
84
Glendale, AZ
Arizona State University
n/a
n/a
1
Casa de Oro Dining Hall
Total Fees
$
Completed
2,555
August 2012
1,008
4,572
August 2012
332
1,055
August 2012
543
August 2012
$
8,725
CONTRACTED PROJECTS IN PROGRESS
Project
Location
College of Staten Island Project
Staten Island, NY
North Campus Village - Housing
Ashland, OR
North Campus Village - Dining Hall1
Lakeside Graduate Community
Total Fees
Fees Earned as
of September
30, 2012
Fees Earned in
Current Year
Remaining Fees
as of September
30, 2012
Scheduled
Completion
$
$
$
Units
Beds
City University of New York
133
454
1,151
August 2013
Southern Oregon University
206
702
1,925
1,233
1,233
692
August 2013
Ashland, OR
Southern Oregon University
n/a
n/a
350
218
218
132
August 2013
Princeton, NJ
Princeton University
329
715
3,200
1,370
1,370
1,830
August 2014
$
2,620
$
8,095
$
1,469
4,290
$
1,469
4,290
$
3,805
ON-CAMPUS AWARD PIPELINE2
Project
Location
Anticipated Financing
Structure
USC Health Sciences Campus
Los Angeles, CA
ACE
1.
2.
Anticipated
Commencement
Estimated Fees
TBD
n/a
The Company is earning a fee to assist the University in building a dining hall that will be located adjacent to the student housing project. The dining hall will be owned by the University and will
be operated by a third-party food service operator.
These awards relate to speculative development projects that are subject to final determination of feasibility, execution and closing on definitive agreements, and fluctuations in the construction
and financing markets. Anticipated commencement and fees are dependent upon the availability of project financing, which is affected by current capital market conditions.
MANAGEMENT SERVICES UPDATE
$ in thousands
Management services revenue
% of total revenue
2012
2011
$ Change
$
1,687
$
1,794
$
(107)
1.4%
1.9%
2012
2011
$ Change
$
5,083
$
5,427
$
(344)
1.5%
1.9%
NEW/PENDING MANAGEMENT CONTRACTS
Property
West Village Suites
UT Dallas Residence Hall Phase III
Jaguar Court
College of Staten Island Project
Location
Hamilton, ON, CA
Richardson, TX
Victoria, TX
Staten Island, NY
McMaster University
University of Texas at Dallas
University of Houston - Victoria
City University of New York
Approximate
Beds
454
400
180
454
Stabilized
Annual Fees1
$
100
100
30
255
$
485
Actual or
Anticipated
Commencement
April 2012
August 2012
August 2012
August 2013
DISCONTINUED MANAGEMENT CONTRACTS
Property
Las Casas
Georgia Gwinnett property
1.
Location
Glendale, AZ
Lawrenceville, GA
Arizona State University
Georgia Gwinnett College
Beds
414
267
2012 Fee
Contribution
Prior to
Termination
$
24
129
$
153
Discontinued As Of
July 2012
September 2012
Stabilized annual fees are dependent upon the achievement of anticipated occupancy levels.
INVESTOR INFORMATION
Executive Management
Bill Bayless
Greg Dowell
Jon Graf
C hief Executive Officer
C hief Operating Officer
C hief Financial Officer
Research Coverage
Jeffery Spector / Jana Galan
Bank of America / Merrill Lynch
(646) 855-1363 / (646) 855-3081
[email protected] / [email protected]
Michael Bilerman / Eric Wolfe
C itigroup Equity Research
(212) 816-1383 / (212) 816-5871
John Perry
Deutsche Bank Securities, Inc.
(212) 250-4912
[email protected]
Matthew Rand
Goldman Sachs & C o
(212) 902-4227
[email protected]
Andrew McC ulloch
Green Street Advisors
(949) 640-8780
[email protected]
C arol Kemple
Hilliard Lyons
(502) 588-1839
[email protected]
Steve Sakwa / Seth Laughlin
ISI Group Inc.
(212) 446-9462 / (212) 446-9458
Anthony Paolone / Joseph Dazio
J.P. Morgan Securities
(212) 622-6682 / (212) 622-6416
Dan Donlan
Janney C apital Markets
(215) 665-6476
[email protected]
Jordan Sadler / Karin Ford
KeyBanc C apital Markets
(917) 368-2280 / (917) 368-2293
Ryan Meliker / Jonathan Petersen
MLV & C o
(212) 542-5872 / (646) 556-9185
Paula Poskon
Robert W. Baird & C o., Inc.
(703) 821-5782
[email protected]
Alexander Goldfarb / James Milam
Sandler O'Neill + Partners, L.P.
(212) 466-7937 / (212) 466-8066
Ross Nussbaum
UBS Investment Research
(212) 713-2484
[email protected]
American C ampus C ommunities, Inc. is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding American C ampus C ommunities, Inc.'s
performance made by such analysts are theirs alone and do not represent the opinions, forecasts or predictions of the company or its management. American C ampus C ommunities,
Inc. does not by its reference above or distribution imply its endorsement of or concurrence with such information, conclusions or recommendations.
Additional Information
C orporate Headquarters:
American C ampus C ommunities, Inc.
12700 Hill C ountry Blvd., Suite T-200
Austin, Texas 78738
Tel: (512) 732-1000; Fax: (512) 732-2450
www.americancampus.com
Investor Relations:
Gina C owart
VP, Investor Relations and C orporate Marketing
FORWARD-LOOKING STATEMENT
In addition to historical information, this supplemental
package contains forward-looking statements under the
federal securities law. These statements are based on
current expectations, estimates and projections about the
industry and markets in which American Campus
operates, management's beliefs, and assumptions made
by management. Forward-looking statements are not
guarantees of future performance and involve certain risks
and uncertainties, which are difficult to predict.

Supplemental Analyst Package - Investor Relations

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