American Campus Communities, Inc. Reports Fourth Quarter and Year End 2007 Financial Results

Business Wire, Feb 27, 2008

AUSTIN, Texas -- American Campus Communities, Inc. (NYSE:ACC) today announced the following financial results for the quarter and year ended December 31, 2007.

Highlights

* Reported fourth quarter 2007 FFOM of $0.44 per fully diluted share versus $0.40 per fully diluted share in 2006, and $1.42 per fully diluted share for the full year 2007 as compared to $1.37 per fully diluted share in 2006, excluding a 2007 charge of $0.42 per fully diluted share for the company's 2004 Outperformance Bonus Plan.

* Increased net operating income ("NOI") for same store owned off-campus properties by 6.1 percent over the fourth quarter 2006 and 4.8 percent over the year ended December 31, 2006.

* Increased same store occupancy for owned off-campus properties to 97.9 percent as of December 31, 2007, compared to 97.1 for same quarter prior year.

* Executed the facility lease and commenced construction on the company's second American Campus Equity (ACE) development, Barrett Honors College, where the company will own on-campus housing. The $126.5 million, 1,720-bed community is located on the campus of Arizona State University.

* Commenced construction on the $336 million Hampton Roads Unaccompanied Housing Privatization Project, in partnership with the U.S Department of the Navy and Hunt Development Group, where ACC is providing development consulting and property management services. The company expects to earn $3.5 million in potential development fees.

* Raised $98.6 million of net proceeds through an equity offering on October 10, 2007, consisting of the sale of 3,500,000 shares of common stock at a price of $28.29 per share.

* Increased total assets by 21.7 percent from $884.4 million as of December 31, 2006 to $1.1 billion as of December 31, 2007 through acquisitions and developments consistent with the company's investment criteria.

2007 Operating Results

Revenue for the 2007 fourth quarter totaled $42.3 million, up 26.2 percent from $33.5 million in the 2006 fourth quarter. Operating income for the quarter increased $2.6 million or 23.0 percent over the prior year quarter primarily due to the third-party segment, 2007 acquisitions and the opening of University Centre in August 2007. Net income for the 2007 fourth quarter totaled $6.1 million, or $0.23 per fully diluted share, compared with $22.6 million, or $0.98 per fully diluted share, for the same quarter in 2006 during which the company recognized an $18.6 million gain on the disposition of The Village on University. FFO for the 2007 fourth quarter totaled $14.4 million, or $0.50 per fully diluted share, compared with $12.3 million, or $0.48 per fully diluted share, for the fourth quarter 2006. FFOM for the 2007 fourth quarter totaled $12.6 million, or $0.44 per fully diluted share, compared with $10.1 million, or $0.40 per fully diluted share, for the fourth quarter 2006. A reconciliation of FFO and FFOM to net income is shown on Table 3.

NOI for same store owned off-campus properties was $15.0 million in the quarter, up 6.1 percent from $14.1 million in the 2006 fourth quarter. NOI for the total owned off-campus property portfolio increased 25.9 percent to $17.7 million for the quarter from $14.1 million in the comparable period of 2006. For purposes of calculating property NOI, the company defines property NOI as property revenues less direct property operating expenses, excluding depreciation and unallocated corporate general and administrative expenses.

For the year ended December 31, 2007, total revenue was $147.1 million, up 23.7 percent from $119.0 million in 2006. Net loss for the year-to-date period totaled $1.7 million, or $0.07 per fully diluted share. FFO for the year-to-date period totaled $28.4 million, or $1.08 per fully diluted share, compared with $30.9 million in 2006, or $1.48 per fully diluted share, and FFOM for 2007 totaled $26.3 million, or $1.00 per fully diluted share, compared with $28.6 million in 2006, or $1.37 per fully diluted share. Excluding a compensation charge and tax impact of $10.9 million, or $0.42 per fully diluted share, related to the company's 2004 Outperformance Bonus Plan, FFOM for 2007 totaled $37.2 million, or $1.42 per fully diluted share.

"Our strong core performance in 2007 was in large part due to the successful integration of the Royal acquisition, which was reflected in our quarterly same store NOI growth numbers. During the second, third and fourth quarters, the period which the Royal properties were included in our same store quarterly groupings, we averaged 8.1 percent same store NOI growth when compared to same quarters prior year," said Bill Bayless, American Campus CEO. "In addition, the successful launch of our ACE program at ASU has paved the way for the future ownership of on-campus assets, and the award of eight third-party development projects during 2007 have created the opportunity for revenues in that segment to reach new heights. These achievements have set the stage for continued value creation in our core business and solid growth in our owned development and third-party services segments."