American Campus Communities, Inc. Reports Third Quarter 2007 Financial Results

Business Wire,  Oct 30, 2007  

• E-mail
• Print
• Link

AUSTIN, Texas -- American Campus Communities, Inc. (NYSE:ACC) today announced the following financial results for the quarter ended September 30, 2007.

Highlights

* Increased net operating income ("NOI") for same store owned off-campus properties by 9.3 percent over the third quarter 2006.

* Quarterly FFOM of $5.9 million, or $0.23 per fully diluted share (including a $0.04 per fully diluted share charge consisting of a $0.5 million compensation charge and a related write-off of the company's deferred tax asset of $0.5 million, both related to the company's 2004 Outperformance Bonus Plan), compared to $5.5 million, or $0.27 per fully diluted share, in the third quarter prior year. Excluding the compensation charge and related tax impact, quarterly FFOM was $6.9 million or $0.27 per fully diluted share.

* The company reaffirms its annual FFOM guidance range of $1.36 to $1.48 per share, excluding the $0.43 per share impact from the compensation charge and related tax impact.

* Increased occupancy of same store owned off-campus portfolio for the 2007-2008 academic year to 98.5 percent, compared to 97.4 percent for the previous academic year.

* Achieved an average rental rate increase at the owned off-campus properties of 4.0 percent for the 2007-2008 academic year.

* Completed construction and opened University Centre, an 838-bed owned off-campus community serving students attending Newark and metro New York area colleges and universities.

* Placed two third-party on-campus communities into service, totaling 1,097 beds at the University of New Orleans and West Virginia University - Potomac State.

* Selected by the Erie Community College Foundation to develop 450 beds on the South Campus in Orchard Park, NY.

* Substantially expanded third-party management business with the award of four assignments at the University of Texas at Dallas, Drake University, Savannah State University and Arizona State University. These four contracts are planned to include more than 5,357 beds and represent more than $715 thousand in potential annual third-party fees.

Third Quarter 2007 Operating Results

Revenue for the 2007 third quarter totaled $36.5 million, up 18.3 percent from $30.9 million in the 2006 third quarter. Net loss for the 2007 third quarter totaled $2.4 million, or $0.10 per fully diluted share, compared with a net loss of $1.6 million, or $0.09 per fully diluted share, for the same quarter in 2006. Operating income for the quarter increased $0.3 million or 6.4 percent over the prior year quarter primarily due to the 2007 acquisitions and new development projects placed into service in 2006 and 2007. FFO for the 2007 third quarter totaled $5.2 million, or $0.21 per fully diluted share, compared with $5.0 million, or $0.24 per fully diluted share, for the third quarter 2006. FFOM for the 2007 third quarter totaled $5.9 million, or $0.23 per fully diluted share, compared with $5.5 million, or $0.27 per fully diluted share, for the third quarter 2006. A reconciliation of FFO and FFOM to net income is shown on Table 3.

"The financial results for the quarter met our internal expectations, and the operational performance of our core business continues to excel with 9.3 percent same store NOI growth when compared to the same quarter prior year," said Bill Bayless, American Campus CEO. "With the capital raise completed subsequent to the quarter, we are positioned to execute on our expanding development pipeline and thrive in a sector where many companies are hindered by the current capital environment."

Positioning Management for Future Growth

ACC's board of directors has approved several promotions and internal reassignments to maximize growth opportunities and facilitate the continuation of the company's sector-leading operational and financial performance. These promotions and reassignments will become effective as of November 1, 2007.

Executive Vice President and Chief Executive Officer Brian Nickel is being promoted to senior executive vice president of capital market strategies and chief investment officer. In addition to his current duties related to capital market strategies, Nickel will take a more active role in leading the execution of the company's investment and growth activities.

Greg Dowell, who has been the company's chief of operations since its IPO in 2004, is being promoted to senior executive vice president and chief operating officer. In addition to providing executive oversight for the company's property operations, Dowell will assume additional responsibilities for corporate support functions to enhance the continuing development, refinement and scalability of the company's property and corporate operating platforms.

With a $1.4 billion development pipeline continuing to rapidly expand, Jim Hopke, currently executive vice president and chief investment officer, will move into the position of executive vice president of project management and construction. In this role he will provide focused executive leadership and oversight related to the project management and delivery of owned and third-party development pipelines.