American Campus Communities Provides Third Quarter Update
September 25 2017 - 8:00AM
Business Wire
American Campus Communities, Inc. (NYSE: ACC), the nation’s
largest owner and manager of high-quality student housing
properties, today provided an interim leasing update for the
2017-2018 academic year on Form 8-K in conjunction with the
company’s participation in the 2017 National Multifamily Housing
Council (NMHC) Student Housing Conference. With several
universities commencing their fall class term in late September,
the company continues to work toward completion of 2017-2018
academic year leasing. Additionally, the company is providing an
update on projected expenses associated with Hurricanes Harvey and
Irma. The company will provide final leasing results and an update
to the company’s fiscal year 2017 financial guidance in its third
quarter 2017 earnings release after the market close on Monday,
October 23, 2017.
Academic Year 2017-2018 Preleasing Update
As of September 24, 2017, the company’s 2018 same store
wholly-owned portfolio was 96.6 percent leased compared to 97.2
percent leased as of September 30, 2016, with a 2.9 percent
projected rental rate increase over in-place rents. The company’s
new wholly-owned properties are 86.7 percent leased, including the
10 wholly-owned development projects opened this fall, which are
83.4 percent leased.
“While the results for 57 of our 60 same store markets exceeded
our expectations, softness in three markets caused us to fall short
of our leasing expectations,” said Bill Bayless, American Campus
Communities CEO. “Challenging conditions at Texas Tech, the
University of Illinois and the Rochester Institute of Technology
had a negative impact on overall leasing results. Excluding these
three markets, the company’s 2018 same store portfolio was 98.0
percent leased compared to 97.5 percent leased in the prior year
with projected rental rate growth of 3.2 percent, demonstrating the
strong fundamentals that continue nationally for the sector. Our
same store properties at Texas Tech, the University of Illinois and
RIT are currently leased to 83.4 percent compared to 95.2 percent
in the prior year. Based on the current leasing results, we
estimate rental revenue for the remainder of calendar year 2017 to
be approximately $4.9 million below the midpoint of our rental
revenue assumptions included in 2017 guidance, which excludes
properties acquired to-date in 2017. These estimates represent
approximately 4.5 of the 12 months of the overall academic year
lease term. When also including the expenses associated with
Hurricanes Harvey and Irma discussed below, we now believe we are
trending around the low end of our current FFOM per-share guidance
range and will provide a full update of our 2017 guidance on our
upcoming earnings call. Looking forward, we see a healthy
environment for student housing nationally and expect that
diminished levels of new supply expected for 2018 and continued
enrollment growth will create a favorable backdrop for the
2018-2019 lease up.”
Update on Projected Hurricane Expenses
The company currently expects to incur approximately $2.0 to
$2.5 million of expenses during 2017 as a result of Hurricanes
Harvey and Irma. While the company is finalizing its assessment of
the impact of Hurricane Irma, the projected expenses primarily
relate to cleanup and repairs for water intrusion, roofing and
landscaping at the company’s communities located in Texas and
Florida.
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, 2017, American Campus Communities owned
160 student housing properties containing approximately 99,000
beds. Including its owned and third-party managed properties, ACC's
total managed portfolio consisted of 197 properties with
approximately 128,700 beds. Visit www.americancampus.com.
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20170925005438/en/
American Campus Communities, Inc.Ryan Dennison,
512-732-1000Investor Relations
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