American Campus Communities, Inc. Provides Leasing Update and Capital Allocation Overview
September 29 2015 - 6:59AM
Business Wire
American Campus Communities, Inc. (NYSE:ACC), the largest
owner, manager and developer of high-quality student housing
properties in the U.S., today released leasing information for the
2015-2016 academic year on Form 8-K, provided a portfolio update,
and provided information on the company’s strategies regarding
capital allocation and balance sheet management in a presentation
available in the Investor Relations section of the company’s
website at www.americancampus.com.
Academic Year 2015-2016 Leasing Update
As of September 28, 2015, the Q4 2015 same store properties are
97.7 percent leased with a 2.9 percent final projected rental rate
increase compared to 97.7 percent as of September 30, 2014. The
total new store properties are leased to 89.9 percent. The combined
total wholly-owned portfolio is 96.9 percent leased as of September
28, 2015.
Portfolio Update
At the end of July, the company completed the acquisition of
Stadium Centre which included the presale of an additional
development phase targeting delivery in Fall 2016. Upon completion
the property will contain 970 beds located pedestrian to Florida
State University in Tallahassee. The transaction consists of a
710-bed existing asset and a to-be-developed phase of 260-beds,
which will function as one property.
“Stadium Centre represents the last of the acquisition
properties which the company placed under contract in early 2015.
Given the current capital market environment, we do not anticipate
any further acquisitions as part of our near term growth strategy,”
said Bill Bayless, American Campus CEO. “The inclusion of the
to-be-developed phase allowed us to acquire the Stadium Centre
assets, on a standalone asset underwrite basis, at a blended cap
rate of 6.2 percent nominal and 6.0 percent economic. With our
eight existing properties containing over 2,600 beds in the Florida
State market, we are optimistic that multiple asset market
efficiencies may yield as much as 25 to 50 basis points more than
the going-in cap rates imply, approaching returns we achieve on our
developments.”
Balance Sheet Management and Capital Allocation
Strategy
As previously announced, on September 15, 2015, the company
priced a $400 million offering of senior unsecured notes under its
existing shelf registration. These five-year notes were issued at
99.811 percent of par value with a coupon of 3.35 percent and
are fully and unconditionally guaranteed by the Company.
“With the completion of this offering which, will be used to
term out the full balance on our revolving credit facility and near
term maturities of mortgage loans, we believe it is an appropriate
time to update the market on our capital allocation strategy and
funding plans,” stated Bill Bayless. “As always, we strive to
allocate our capital to investment opportunities that generate an
appropriate risk adjusted return and are accretive to both net
asset value and earnings per share. Due to the existing capital
market environment, we do not currently believe acquisitions
provide an attractive investment. As such, at this time, we are
stepping away from the acquisition market and rather are focusing
on executing on our high yielding development pipeline. We intend
to fund the developments with a mix of available operating cash
flow and continuation of our capital recycling program. With a
robust private market for student housing properties experiencing
valuations at historic highs, disposition of non-core assets along
with the potential disposition or joint venture of core assets
currently represent our most attractive source of external
capital.”
Forward-Looking Statements
In addition to historical information, this press release
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.
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, 2015, American Campus Communities owned
159 student housing properties containing approximately 96,400
beds. Including its owned and third-party managed properties,
American Campus Communities’ total managed portfolio consisted of
198 properties with approximately 126,800 beds.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150929005650/en/
American Campus Communities, Inc.Ryan Dennison,
512-732-1000Investor Relations
American Campus Communit... (NYSE:ACC)
Historical Stock Chart
From Mar 2024 to Apr 2024
American Campus Communit... (NYSE:ACC)
Historical Stock Chart
From Apr 2023 to Apr 2024