ACC Releases First Quarter Financial Report

Austin, Texas — Austin-based American Campus Communities Inc. has released its first quarter financial report. The company achieved quarterly funds from operations of $78.2 million in the first quarter of this year, or $0.62 per fully diluted share, compared to $76.1 million the year prior.

ACC also reports a same-store, wholly owned portfolio average occupancy of 97.4 percent, compared to 97.8 percent during the first quarter of 2015. Non-core properties targeted for disposition represented 37 basis points of this 40 basis point decrease in same store average occupancy.

For the upcoming academic year, ACC’s same store portfolio is 83.3 percent applied for and 77.4 percent leased, up from 82.4 percent applied for and 75.7 percent leased in 2015.

The company completed the sale of two properties for $73.8 million, totaling 1,324 beds, during the first quarter. Both communities were located over .6 miles away from campus.

ACC executed a predevelopment agreement for an American Campus Equity transaction with Virginia Commonwealth University for the replacement and expansion of first-year on-campus, housing during the first quarter. The project is expected to include 1,524 on-campus beds, and is scheduled for delivery in fall 2018.

The company also executed a pre-development agreement for a proposed third-party development project on the campus of Texas A&M University – San Antonio, and executed a third-party consultant agreement with CHF – Collegiate Housing Island Campus to provide advisory services related to the potential purchase of a 1,790-bed apartment community located on the campus of Texas A&M University – Corpus Christi.

Subsequent to quarter end, ACC commenced construction on an eighth phase of on-campus development with Prairie View A&M University; and Suites at 3rd, an off-campus development located pedestrian to the University of Illinois. Both projects are set to open in fall 2017.

ACC was also awarded the right to begin pre-development on a proposed third-party development project on the campus of La Salle University after the end of the first quarter.

Standard & Poor’s Ratings Services also upgraded the company’s corporate credit rating to BBB from BBB- during the first quarter.

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