Supplemental Analyst Package
Fourth Quarter 2004 Earnings Call
March 2, 2005
TABLE OF CONTENTS
Supplemental Analyst Package
Fourth Quarter 2004 Earnings Call
1
Financial Highlights ……….…………………………....………………………...……..………………………….….….…....………….……
2
Consolidated and Combined Statements of Operations…………………………………………...…………………….....….….…...………..
3
Consolidated and Combined Statements of Funds from Operations……………………………………...…………………..….…….………
4
Capital Structure…………………………………………………………………………………….....….…………………...……………..……
5
Portfolio Overview……………………………………………………….…………………………………..…………….……....………………..
6
Same Store Results of Operations…………………………………………………….………………………………….....………………………
7
Owned Off-Campus Same Store Occupancy…………………………………………..…….…………………...……………………………...
8
Fall to Spring Change in Occupancy - Owned Off-Campus Properties…………………………………..……………………………………
9
Fall to Spring Change in Occupancy - On-Campus Participating Properties…………………………….……………………………………
10
2005 / 2006 Leasing Status...……………………...…………….………………………………..……………………………..………….………
11
Recent Acquisitions / Dispositions……………………………………………………………...……………....………………….………………
12
Acquisitions / Developments Update……………………………………………………………...……………....………………………….……
13
Third Party Development Services Update…………………………….……………………………..…………………..……………….………
14
Management Services Update…………………………………………………………………….………….…………..…………………...……
15
2005 Outlook………………………………………………………………………….………………………...…………….………….…………
16
American Campus Communities Contacts………….……………..…………………………..…………………………………….…………….
17
Consolidated and Combined Balance Sheets ……………………………………...……………………………………………..….…….……..
FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
Supplemental Analyst Package
Fourth Quarter 2004 Earnings Call
2004
2003
$ Change
% Change
2004
2003
$ Change
% Change
Operating Data
Total revenues
18,181
$
15,248
$
2,933
$
19.2%
60,823
$
57,136
$
3,687
$
6.5%
Operating income
5,946
3,988
1,958
49.1%
14,500
16,444
(1,944)
-11.8%
Net income (loss)
3,340
(377)
3,717
985.9%
(1,339)
(944)
(395)
-41.8%
Net income per share - basic and diluted
0.26
-
-
-
-
-
-
-
FFO
6,161
1,828
4,333
237.0%
8,609
7,961
648
8.1%
FFO per share - basic
0.49
-
-
-
-
-
-
-
FFO per share - diluted
0.48
-
-
-
-
-
-
-
FFOM
4,548
325
4,223
1299.4%
6,455
5,784
671
11.6%
FFOM per share - basic and diluted
0.36
-
-
-
-
-
-
-
Capitalization
Total debt
(1)
Market equity
(2)
Total enterprise value
Debt to total enterprise value
Total common shares outstanding
Total PIUs and RSUs outstanding
(3)
128,145
128,145
(1)
Excludes debt related to our on-campus participating properties of $77.2 million and $76.8 at December 31, 2004 and September 30, 2004, respectively.
(2)
Based on closing price per common share of $22.49 and $18.56 as of December 31, 2004 and September 30, 2004, respectively.
352,778
30.2%
33.0%
12,615,000
12,615,000
(3)
Consists of profit interest units ("PIUs") in the Operating Partnership and restricted stock units ("RSUs").
Quarter ended December 31,
Year ended December 31,
December 31, 2004
September 30, 2004
123,774
$
116,265
$
286,593
236,513
410,367
$
1
$
CONSOLIDATED & COMBINED BALANCE SHEETS
(dollars in thousands, except share and per share data)
Supplemental Analyst Package
Fourth Quarter 2004 Earnings Call
2
CONSOLIDATED & COMBINED BALANCE SHEETS
(dollars in thousands, except share and per share data)
December 31, 2004
December 31, 2003
Assets
Investments in real estate:
Owned off-campus properties, net
$ 272,450
$ 222,907
On-campus participating properties, net
68,064
77,689
Investments in real estate, net
340,514
300,596
Cash and cash equivalents
4,050
5,227
Restricted cash and short-term investments
9,816
9,503
Student contracts receivable, net
2,164
2,355
Other assets
11,084
12,885
$ 367,628
$ 330,566
Total assets
Liabilities and stockholders’ and Predecessor owners’ equity
Liabilities:
Mortgage loans, bonds payable, and lines of credit
$ 201,014
$ 275,598
Accounts payable and accrued expenses
5,443
3,966
Other liabilities
20,294
23,092
226,751
302,656
Minority interests
2,648
252
Stockholders’ and Predecessor owners’ equity:
Common stock, $.01 par value, 800,000,000 shares authorized,
12,615,000 shares issued and outstanding
126
-
Additional paid in capital
136,259
-
Accumulated earnings and dividends
1,802
-
Accumulated other comprehensive income (loss)
42
(197)
Predecessor owners’ equity
-
27,855
138,229
27,658
Total liabilities and stockholders’ and Predecessor owners’ equity
$ 367,628
$ 330,566
Total stockholder’s and Predecessor owners’ equity
Total liabilities
CONSOLIDATED & COMBINED STATEMENTS OF OPERATIONS
(dollars in thousands, except share and per share data)
Supplemental Analyst Package
Fourth Quarter 2004 Earnings Call
2004
2003
$ Change
2004
2003
$ Change
Revenues:
Owned off-campus properties
10,455
$
7,699
$
2,756
$
35,115
$
31,514
$
3,601
$
On-campus participating properties
5,595
5,578
17
17,418
16,482
936
Third party development services
1,065
1,600
(535)
5,803
7,939
(2,136)
Third party management services
798
371
427
2,105
1,189
916
Resident services and other
268
-
268
382
12
370
Total revenues
18,181
15,248
2,933
60,823
57,136
3,687
Operating expenses:
Owned off-campus properties
4,446
3,728
718
16,861
15,272
1,589
On-campus participating properties
2,082
2,099
(17)
7,900
7,925
(25)
Third party development and management services
1,422
1,448
(26)
5,543
5,389
154
General and administrative
1,314
1,561
(247)
5,234
2,749
2,485
Depreciation and amortization
2,823
2,237
586
9,973
8,868
1,105
Ground lease
148
187
(39)
812
489
323
Total operating expenses
12,235
11,260
975
46,323
40,692
5,631
Operating income
5,946
3,988
1,958
14,500
16,444
(1,944)
Nonoperating income and (expenses):
Interest income
25
15
10
82
71
11
Interest expense
(3,550)
(4,299)
749
(16,698)
(16,940)
242
Amortization of deferred financing costs
(232)
(140)
(92)
(1,211)
(558)
(653)
Other nonoperating income
653
-
653
927
-
927
Total nonoperating expenses
(3,104)
(4,424)
1,320
(16,900)
(17,427)
527
Income (loss) before income taxes, minority interests, and
discontinued operations
2,842
(436)
3,278
(2,400)
(983)
(1,417)
Income tax (provision) benefit
(29)
-
(29)
728
-
728
Minority interests
(30)
41
(71)
100
16
84
Income (loss) from continuing operations
2,783
(395)
3,178
(1,572)
(967)
(605)
Discontinued operations:
Income attributable to discontinued operations
557
2
555
272
7
265
Gain (loss) from disposition of real estate
-
16
(16)
(39)
16
(55)
Total discontinued operations
557
18
539
233
23
210
Net income (loss)
(1)
3,340
$
(377)
$
3,717
$
(1,339)
$
(944)
$
(395)
$
Net income per share - basic and diluted
0.26
$
Weighted-average common shares outstanding:
Basic
Diluted
(1)
Full-year 2004 results reflect charges totaling approximately $2.6 million related to the company’s IPO and related formation transactions. Excluding these transactions,
net income for the year ended December 31, 2004 would have been $1.3 million.
Quarter ended December 31,
Year ended December 31,
3
12,622,145
12,743,145
Supplemental Analyst Package
Fourth Quarter 2004 Earnings Call
2004
2003
$ Change
2004
2003
$ Change
Net income (loss)
(1)
3,340
$
(377)
$
3,717
$
(1,339)
$
(944)
$
(395)
$
Minority interests
30
(41)
71
(100)
(16)
(84)
(Gain) loss from disposition of real estate
-
(16)
16
39
(16)
55
Real estate related depreciation and amortization
2,791
2,262
529
10,009
8,937
1,072
Funds from operations (“FFO”)
(1)
6,161
1,828
4,333
8,609
7,961
648
Elimination of operations of on-campus participating properties:
Net income from on-campus participating properties
(1,179)
(1,219)
40
(270)
(187)
(83)
Amortization of investment in on-campus participating properties
(871)
(850)
(21)
(3,531)
(3,270)
(261)
(2,050)
(2,069)
19
(3,801)
(3,457)
(344)
Modifications to reflect operational performance of on-campus
participating properties:
Our share of net cash flow
(2)
148
282
(134)
772
471
301
Management fees
274
284
(10)
860
809
51
CONSOLIDATED & COMBINED STATEMENTS OF FUNDS FROM OPERATIONS
(dollars in thousands, except per share data)
Supplemental Analyst Package
Fourth Quarter 2004 Earnings Call
On-campus participating property development fees
15
-
15
-
Impact of on-campus participating properties
437
566
(129)
1,647
1,280
367
Funds from operations – modified for operational performance
of on-campus participating properties (“FFOM”)
4,548
$
325
$
4,223
$
6,455
$
5,784
$
671
$
FFO per share – basic
0.49
$
FFO per share – diluted
0.48
$
FFOM per share – basic and diluted
0.36
$
Weighted average common shares outstanding
Basic
12,622,145
Diluted
12,743,145
FFO and FFOM for the year ended December 31, 2004 would have been $1.3 million, $11.2 million and $9.1 million, respectively
represent actual cash received for the year-to-date periods and amounts accrued for the interim periods.
Quarter ended December 31,
Year ended December 31,
(2)
50% of the properties’ net cash available for distribution after payment of operating expenses, debt service (including repayment of principal) and capital expenditures. Amounts
(3)
Development and construction management fees related to the Cullen Oaks Phase II on-campus participating property.
(1)
Full-year 2004 results reflect charges totaling approximately $2.6 million related to the company’s IPO and related formation transactions. Excluding these transactions, net income,
4
(1)
(3)
CAPITAL STRUCTURE
AS OF DECEMBER 31, 2004
(dollars in thousands)
Supplemental Analyst Package
Fourth Quarter 2004 Earnings Call
2004 Interest Expense Summary
(3)
Owned Off-Campus Properties
$ 11,583
On-Campus Participating Properties
5,548
Corporate and other
180
Total Interest Expense
$ 17,311
(2) Based on share price of $22.49 at December 31, 2004
(3) Includes interest expense related to discontinued operations.
(1) Excluding debt related to our on-campus participating properties totaling $77.2 million with a weighted average interest rate of 6.9% and average term to maturity of 16.1 years
Total Debt
(1)
123,774
$
Total Market Equity
(2)
286,593
Total Enterprise Value
410,367
$
Debt to Total Enterprise Value
30.2%
Principal
Outstanding
(1)
Average
Term to
Maturity
Fixed Rate Mortgage Notes Payable
111,974
$
6.73%
5.9 Years
Variable Rate Secured Revolving Credit Facility
11,800
3.92%
2.6 Years
Total / Weighted Average
123,774
$
6.46%
5.6 Years
Variable Rate Debt as a Percent of Total Debt
9.5%
Variable Rate Debt as a Percent of Total Enterprise Value
2.9%
Weighted
Average
Interest
Total Equity
70%
Total Debt
(1)
30%
0
0
11,800
0
15,351
96,623
0
20
40
60
80
100
2005
2006
2007
2008
2009
Thereafter
Debt Maturity Schedule: 2005 - Thereafter
(1)
5
PORTFOLIO OVERVIEW
AS OF DECEMBER 31, 2004
Supplemental Analyst Package
Fourth Quarter 2004 Earnings Call
Property
Primary University Served
Units
Beds
Occupancy
Owned off-campus properties:
Commons On Apache
Arizona State University Main Campus
111
444
100.0%
(1)
The Village at Blacksburg
Virginia Polytechnic Institute and State University
288
1,056
98.6%
The Village on University
Arizona State University Main Campus
288
918
95.1%
River Club Apartments
The University of Georgia – Athens
266
794
93.3%
River Walk Townhomes
The University of Georgia – Athens
100
340
98.2%
The Callaway House
Texas A&M University
173
538
101.9%
The Village at Alafaya Club
The University of Central Florida
228
840
96.5%
The Village at Science Drive
The University of Central Florida
192
732
99.5%
University Village at Boulder Creek
The University of Colorado at Boulder
82
309
87.1%
University Village at Fresno
California State University – Fresno
105
406
99.5%
University Village at San Bernardino
(2)
California State University – San Bernardino
132
480
95.6%
University Village at TU
Temple University
220
749
99.7%
University Village at Sweet Home
(3)
State University of New York – Buffalo
269
828
n/a
Total owned off-campus properties
2,454
8,434
97.3%
On-campus participating properties:
University Village—PVAMU
Prairie View A&M University
612
1,920
99.2%
University College—PVAMU
Prairie View A&M University
756
1,470
98.6%
University Village—TAMIU
Texas A&M International University
84
252
66.3%
Cullen Oaks Phase I
The University of Houston
231
525
98.3%
Cullen Oaks Phase II
(3)
The University of Houston
180
354
n/a
Total on-campus participating properties
1,863
4,521
96.9%
Total – all properties
4,317
12,955
97.1%
(1) Commons on Apache is 100% leased for the 2004-2005 academic year by Arizona State University.
(2) In November 2004, California State University exercised its option to purchase this property for $28.3 million. This disposition was consummated in January 2005.
(3) Currently under development with a scheduled completion date of August 2005.
6
SAME STORE RESULTS OF OPERATIONS
(dollars in thousands)
Supplemental Analyst Package
Fourth Quarter 2004 Earnings Call
2004
2003
$ Change
% Change
2004
2003
$ Change
% Change
Property revenues
Owned off-campus properties:
Same store properties
8,380
$
7,699
$
681
$
8.8%
31,938
$
31,514
$
424
$
1.3%
New properties
2,075
-
2,075
100.0%
3,177
-
3,177
100.0%
Total owned off-campus properties
10,455
7,699
2,756
35.8%
35,115
31,514
3,601
11.4%
On-campus participating properties:
Same store properties
5,595
5,578
17
0.3%
16,604
16,089
515
3.2%
New properties
-
-
-
-
814
393
421
107.1%
Total on-campus participating properties
5,595
5,578
17
0.3%
17,418
16,482
936
��
5.7%
Total property revenues
16,050
$
13,277
$
2,773
$
20.9%
52,533
$
47,996
$
4,537
$
9.5%
Property operating expenses
Owned off-campus properties:
Same store properties
3,813
$
3,728
$
85
$
2.3%
15,576
$
15,272
$
304
$
2.0%
New properties
633
-
633
100.0%
1,285
-
1,285
100.0%
Total owned off-campus properties
4,446
3,728
718
19.3%
16,861
15,272
1,589
10.4%
On-campus participating properties:
Same store properties
2,082
2,099
(17)
-0.8%
7,522
7,803
(281)
-3.6%
New properties
-
-
-
-
378
122
256
209.8%
Total on-campus participating properties
2,082
2,099
(17)
-0.8%
7,900
7,925
(25)
-0.3%
Total property operating expenses
6,528
$
5,827
$
701
$
12.0%
24,761
$
23,197
$
1,564
$
6.7%
Property net operating income
Owned off-campus properties:
Same store properties
4,567
$
3,971
$
596
$
15.0%
16,362
$
16,242
$
120
$
0.7%
New properties
1,442
-
1,442
100.0%
1,892
-
1,892
100.0%
Total owned off-campus properties
6,009
3,971
2,038
51.3%
18,254
16,242
2,012
12.4%
On-campus participating properties:
Same store properties
3,513
3,479
34
1.0%
9,082
8,286
796
9.6%
New properties
-
-
-
-
436
271
165
60.9%
Total on-campus participating properties
3,513
3,479
34
1.0%
9,518
8,557
961
11.2%
-
Total property net operating income
9,522
$
7,450
$
2,072
$
27.8%
27,772
$
24,799
$
2,973
$
12.0%
Quarter ended December 31,
Year ended December 31,
7
12/31/2004
12/31/2003
Occupancy
Occupancy
Callaway House
101.9%
71.6%
Commons on Apache
100.0%
96.4%
River Club Apartments
93.3%
98.1%
River Walk Townhomes
98.2%
95.3%
The Village at Alafaya Club
96.5%
99.2%
The Village at Blacksburg
98.6%
76.3%
The Village at Science Drive
99.5%
99.5%
The Village on University
95.1%
76.3%
University Village at Boulder Creek
87.1%
94.5%
97.0%
88.3%
Total
8
OWNED OFF-CAMPUS SAME STORE OCCUPANCY
Supplemental Analyst Package
Fourth Quarter 2004 Earnings Call
Fall Beds
Occupied
(1)
Spring Beds
Occupied
(2)
Variance
Spring
Occupancy
Change
Commons on Apache
444
444
-
-
The Village at Blacksburg
1,041
1,040
(1)
-0.1%
The Village on University
887
909
22
2.4%
River Club Apartments
736
756
20
2.6%
River Walk Townhomes
334
333
(1)
-0.3%
The Callaway House
550
548
(2)
-0.4%
The Village at Alafaya Club
802
817
15
1.8%
The Village at Science Drive
728
727
(1)
-0.1%
University Village at Boulder Creek
266
268
2
0.7%
University Village at Fresno
405
402
(3)
-0.7%
University Village at TU
746
741
(5)
-0.7%
Total
6,939
6,985
46
0.7%
(1)
Occupancy as of 9/30/04
(2)
Occupancy as of 2/25/05
9
Supplemental Analyst Package
Fourth Quarter 2004 Earnings Call
FALL TO SPRING CHANGE IN OCCUPANCY
OWNED OFF-CAMPUS PROPERTIES
Fall Beds
Occupied
(1)
Spring Beds
Occupied
(2)
Variance
Spring
Occupancy
Change
University Village - PVAMU
1,913
1,825
(88)
-19.8%
University College - PVAMU
1,469
1,406
(63)
-4.5%
University Village - TAMIU
178
181
3
1.7%
Cullen Oaks Phase I
523
523
-
0.0%
Total
4,083
3,935
(148)
-3.8%
(1)
Occupancy as of 9/30/04
(2)
Occupancy as of 2/25/05
10
Supplemental Analyst Package
Fourth Quarter 2004 Earnings Call
FALL TO SPRING CHANGE IN OCCUPANCY
ON-CAMPUS PARTICIPATING PROPERTIES
2005/2006 LEASING STATUS
OWNED OFF-CAMPUS PORTFOLIO
Supplemental Analyst Package
Fourth Quarter 2004 Earnings Call
(1)
Represents applications and signed leases in place through February 2005 for the 2005/2006 academic year and through February 2004 for the 2004/2005 academic year.
11
2005/2006 Academic Year
(1)
2004/2005 Academic Year
(1)
Change
% Change
Applications
Signed Leases
Applications
Signed Leases
Applications
Signed Leases
Applications
Signed Leases
Commons On Apache
444
444
444
444
-
-
0.0%
0.0%
The Village at Blacksburg
1,002
976
1,012
987
(10)
(11)
-1.0%
-1.1%
-
The Village on University
56
-
25
-
31
-
124.0%
0.0%
River Club Apartments
369
364
171
132
198
232
115.8%
175.8%
-
River Walk Townhomes
178
177
195
149
(17)
28
-8.7%
18.8%
The Callaway House
410
308
294
158
116
150
39.5%
94.9%
-
The Village at Alafaya Club
167
164
238
228
(71)
(64)
-29.8%
-28.1%
-
The Village at Science Drive
340
321
344
330
(4)
(9)
-1.2%
-2.7%
University Village at Boulder Creek
60
55
85
12
(25)
43
-29.4%
358.3%
-
University Village at Fresno
216
140
90
61
126
79
140.0%
129.5%
-
University Village at TU
400
302
279
144
121
158
43.4%
109.7%
-
Totals
3,642
3,251
3,177
2,645
465
606
14.6%
22.9%
RECENT ACQUISITIONS / DISPOSITIONS
(dollars in thousands)
Supplemental Analyst Package
Fourth Quarter 2004 Earnings Call
ACQUISITIONS
Property
Location
Year
Built
Primary University Served
Units
Beds
Month of
Acquisition
Proctor portfolio:
University Club Tallahassee
Tallahassee, FL
2000
Florida State University
152
608
February 2005
The Grove at University Club
Tallahassee, FL
2002
Florida State University
64
128
February 2005
College Club
Tallahassee, FL
2001
Florida A&M University
96
384
February 2005
College Club Tallahassee Phase II
Tallahassee, FL
2004
Florida A&M University
40
160
February 2005
University Club Gainesville Phase I
Gainesville, FL
1999
University of Florida
94
376
February 2005
Total Proctor portfolio
(1)
446
1,656
DISPOSITIONS
Property
Location
Year
Built
Primary University Served
Units
Beds
Sales Price
Cash
Proceeds
Month of
Disposition
University Village at San Bernardino
San Bernardino, CA
2004
California State University -
San Bernardino
132
480
$ 28,250
$ 28,146
January 2005
(1)
This portfolio was purchased for a total purchase price of $53.5 million, including the assumption of $35.4 million in debt with a weighted average interest rate of
7.4% and average term to maturity of 6 years.
12
ACQUISITIONS / DEVELOPMENTS UPDATE
(dollars in thousands)
ACQUISITIONS
Property
Location
Primary University Served
Units
Beds
Estimated
Acquisition
Costs
(1)
Estimated Debt
Assumed
Estimated
Closing Date
Cityparc at Fry Street
Denton, TX
University of North Texas
136
418
19,150
$
11,790
$
1st Quarter 2005
The Exchange at Gainesville
Gainesville, FL
University of Florida
396
1,044
47,500
-
1st Quarter 2005
DEVELOPMENTS
Property
Location
Primary University Served
Units
Beds
Estimated
Project Costs
Scheduled
Completion
Date
% Complete at
12/31/04
University Village at Sweet Home
Amherst, NY
State University of New York -
Buffalo
269
828
36,074
$
August 2005
30.8%
(1)
Represents purchase price per Purchase and Sale Agreement
13
Supplemental Analyst Package
Fourth Quarter 2004 Earnings Call
THIRD PARTY DEVELOPMENT SERVICES UPDATE
(dollars in thousands)
Supplemental Analyst Package
Fourth Quarter 2004 Earnings Call
2004
2003
$ Change
% Change
2004
2003
$ Change
% Change
Development services revenue
1,065
$
1,600
$
(535)
$
-33.4%
5,803
$
7,939
$
(2,136)
$
-26.9%
% of total revenue
5.9%
10.5%
9.5%
13.9%
CURRENT PROJECTS
Project
Units
Beds
Total Fees
Fees
Earned to
Date
(1)
Remaining
Fees
(1)
Scheduled
Completion
Saint Leo University Phase II
87
320
375
$
83
$
292
$
August 2005
Vista del Campo Phase II
545
1,564
3,501
43
3,458
August 2006
West Virginia University -
Pre-Development Services
96
345
400
250
150
May 2005
(1)
As of December 31, 2004
Quarter ended December 31,
Year ended December 31,
Location
Primary University Served
Morgantown, WV
West Virginia University
St. Leo, FL
St. Leo University
Irvine, CA
University of California - Irvine
14
MANAGEMENT SERVICES UPDATE
(dollars in thousands)
Supplemental Analyst Package
Fourth Quarter 2004 Earnings Call
2004
2003
$ Change
% Change
2004
2003
$ Change
% Change
Management services revenue
798
$
371
$
427
$
115.1%
2,105
$
1,189
$
916
$
77.0%
% of total revenue
4.4%
2.4%
3.5%
2.1%
NEW AND RENEWED MANAGEMENT CONTRACTS
Property
Location
Units
Beds
Estimated
Annual
Fees
Calumet
Hammond, IN
95
377
88
$
San Marcos Hall
San Marcos, TX
307
892
48
Sterling Grove
Tallahassee, FL
168
576
132
Sterling Meadows
Mt. Pleasant, MI
184
616
120
Central Michigan University
Property Management
Texas State University - San Marcos
Accounting Services
Florida State University
Property Management
Purdue-Calumet
Initial Operations & Property Management
Quarter ended December 31,
Year ended December 31,
Primary University Served
Service Provided
15
2005 OUTLOOK
(dollars in thousands, except per share data)
Supplemental Analyst Package
Fourth Quarter 2004 Earnings Call
Low
High
Net income
9,200
$
9,900
$
Gain on disposition of property
(5,400)
(5,600)
Minority interests
50
150
Depreciation and amortization
13,900
14,100
Amortization of acquired intangible assets
400
600
Funds from operations ("FFO")
18,150
19,150
Elimination of operations of on-campus participating
properties:
Net income from on-campus participating properties
(500)
(400)
Amortization of investment in on-campus
participating properties
(3,500)
(3,500)
(4,000)
(3,900)
Modifications to reflect operational performance of
on-campus participating properties:
Our share of net cash flow
800
900
Development fees earned on Cullen Oaks
1,050
1,100
Management fees
800
900
Impact of on-campus participating properties
2,650
2,900
Funds from operations - modified for operational performance
of on-campus participating properties (“FFOM”)
16,800
$
18,150
$
Weighted average common shares outstanding - diluted
12,744
12,744
Net income per share - diluted
0.72
$
0.78
$
FFO per share - diluted
1.42
$
1.50
$
FFOM per share - diluted
1.32
$
1.42
$
Key Assumptions
(1) We will complete current contracted acquisitions by mid-year at current contract terms without effect of fair value adjustments
that may be necessary.
(2) University Village at Sweet Home will open on-time and on-budget, and that 50% of the project costs will be permanently financed upon completion.
(3) The on-campus participating construction property Cullen Oaks Phase II will open on-time and on-budget
(4) We will enter into contracts for third-party development and construction projects that generate revenues consistent with historical levels.
(5) Our 2005/2006 academic year lease-up will be at similar rates and occupancy levels as experienced in the current academic year
(6) Our cost to comply with Sarbanes Oxley Section 404 by the end of 2005 will be approximately $0.5 million.
(7) The LIBOR and prime rates of interest will not increase more than 75 basis points in 2005.
16
AMERICAN CAMPUS COMMUNITIES CONTACTS
Supplemental Analyst Package
Fourth Quarter 2004 Earnings Call
Contact Name
Phone
William C. Bayless, Jr.
(512) 732-1020
bbayless@student housing.com
Brian B. Nickel
(512) 732-1045
bnickel@student housing.com
Mark J. Hager
(512) 732-1040
mhager@studenthousing.com
Georganne Palffy
(312) 640-6768
gpalffy@financialrelationsboard.com
American Campus Communities, Inc.
805 Las Cimas Parkway
Suite 400
Austin, Texas 78746
Tel: (512) 732-1000
Fax: (512) 732-2450
www.americancampuscommunities.com
Corporate Headquarters
Title
Chief Executive Officer
Chief Investment Officer
Chief Financial Officer
Investor Relations
17
FORWARD LOOKING STATEMENTS
This supplemental package contains forward-looking statements, which express the current beliefs and
expectations of management. Except for historical information, the matters discussed in this supplemental
package are forward-looking statements and can be identified by the use of the words “anticipate,”
“believe,” “expect,” “intend,” “may,” “might,” “plan,” “estimate,” “project,” “should,” “will,” “result” and
similar expressions. Such statements are based on current expectations and involve a number of known
and unknown risks and uncertainties that could cause our future results, performance or achievements to
differ significantly from the results, performance or achievements expressed or implied by such forward-
looking statements.
Our actual results could differ materially from those anticipated in these forward-looking statements as a
result of various factors, including risks and uncertainties inherent in the national economy, the real estate
industry in general, and in our specific markets; the effect of terrorism or the threat of terrorism; legislative
or regulatory changes including changes to laws governing REITS; our dependence on key personnel
whose continued service is not guaranteed; availability of qualified acquisition and development targets;
availability of capital and financing; rising interest rates; rising insurance rates; impact of ad valorem and
income taxation; changes in generally accepted accounting principals; and our continued ability to
successfully lease and operate our properties. While we believe these forward-looking statements are
based on reasonable assumptions, we can give no assurance that our expectations will be achieved. These
forward-looking statements are made as of the date of this supplemental package, and we undertake no
obligation to publicly update or revise any forward-looking statement, whether as a result of new
information, future events or otherwise.
Supplemental Analyst Package
Fourth Quarter 2004 Earnings Call