American Campus Communities Supplemental Analyst Package Third Quarter 2005 Earnings Call November 1, 2005 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||
2005 | 2004 | $ Change | % Change | 2005 | 2004 | $ Change | % Change | ||||||||||||||||||||||||
Operating Data | |||||||||||||||||||||||||||||||
Total revenues | $ | 21,877 | $ | 13,458 | $ | 8,419 | 62.6 | % | $ | 61,425 | $ | 42,641 | $ | 18,784 | 44.1 | % | |||||||||||||||
Operating income (loss) | 3,661 | (991 | ) | 4,652 | 12,687 | 8,456 | 4,231 | ||||||||||||||||||||||||
Net (loss) income | (596 | ) | (5,208 | ) | 4,612 | 5,804 | (4,679 | ) | 10,483 | ||||||||||||||||||||||
Net (loss) income per share - basic | (0.04 | ) | (0.13 | ) | (1 | ) | 0.41 | (0.13 | ) | (1 | ) | ||||||||||||||||||||
Net (loss) income per share - diluted | (0.03 | ) | (0.12 | ) | (1 | ) | 0.41 | (0.12 | ) | (1 | ) | ||||||||||||||||||||
FFO | 3,567 | (2,641 | ) | 6,208 | 11,829 | 2,448 | 9,381 | ||||||||||||||||||||||||
FFO per share - basic | 0.21 | (0.01 | ) | (1 | ) | 0.84 | (0.01 | ) | (1 | ) | |||||||||||||||||||||
FFO per share - diluted | 0.21 | (0.01 | ) | (1 | ) | 0.83 | (0.01 | ) | (1 | ) | |||||||||||||||||||||
FFOM | 4,285 | (2,163 | ) | 6,448 | 12,404 | 1,981 | 10,423 | ||||||||||||||||||||||||
FFOM per share - basic | 0.25 | (0.02 | ) | (1 | ) | 0.88 | (0.02 | ) | (1 | ) | |||||||||||||||||||||
FFOM per share - diluted | 0.25 | (0.02 | ) | (1 | ) | 0.87 | (0.02 | ) | (1 | ) | |||||||||||||||||||||
Same store net operating income - | |||||||||||||||||||||||||||||||
owned off-campus properties | 3,604 | 3,442 | 162 | 4.7 | % | 13,448 | 11,954 | 1,494 | 12.5 | % | |||||||||||||||||||||
Operating Statistics | September 30, 2005 | December 31, 2004 | |||||||||||||||||||||||||||||
Debt to total market capitalization (2) | 32.0% | 30.2% | |||||||||||||||||||||||||||||
Interest coverage (3) | 2.18 | 2.26 | |||||||||||||||||||||||||||||
Fixed charge coverage (3) | 1.65 | 1.72 | |||||||||||||||||||||||||||||
(1) Per share amounts represent the period from August 17, 2004, the date of the Company's initial public offering, to September 30, 2004. | |||||||||||||||||||||||||||||||
(2) Excludes debt related to our on-campus participating properties of $90.7 million and $77.2 million at September 30, 2005 and December 31, 2004, respectively. | |||||||||||||||||||||||||||||||
(3) Represents operating performance for the four most recently completed fiscal quarters. Excludes interest and fixed charges associated with our on-campus participating properties. |
September 30, 2005 | December 31, 2004 | ||||||
Assets | |||||||
Investments in real estate: | |||||||
Owned off-campus properties, net | $ | 409,712 | $ | 272,450 | |||
On-campus participating properties, net | 81,750 | 68,064 | |||||
Investments in real estate, net | 491,462 | 340,514 | |||||
Cash and cash equivalents | 5,879 | 4,050 | |||||
Restricted cash | 8,547 | 9,816 | |||||
Investments in commercial paper | 31,682 | - | |||||
Student contracts receivable, net | 2,284 | 2,164 | |||||
Other assets | 14,615 | 11,084 | |||||
Total assets | $ | 554,469 | $ | 367,628 | |||
Liabilities and stockholders’ equity | |||||||
Liabilities: | |||||||
Secured debt | $ | 291,762 | $ | 201,014 | |||
Accounts payable and accrued expenses | 8,564 | 5,443 | |||||
Other liabilities | 26,275 | 20,294 | |||||
Total liabilities | 326,601 | 226,751 | |||||
Minority interests | 2,816 | 2,648 | |||||
Stockholders’ equity: | |||||||
Common stock, $.01 par value, 800,000,000 shares authorized, | |||||||
17,190,000 and 12,615,000 shares issued and outstanding | |||||||
at September 30, 2005 and December 31,2004, respectively | 172 | 126 | |||||
Additional paid in capital | 231,253 | 136,259 | |||||
Accumulated (deficit) earnings and distributions | (6,777 | ) | 1,802 | ||||
Accumulated other comprehensive income | 404 | 42 | |||||
Total stockholders’ equity | 225,052 | 138,229 | |||||
Total liabilities and stockholders’ equity | $ | 554,469 | $ | 367,628 | |||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
2005 | 2004 | $ Change | 2005 | 2004 | $ Change | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||
Owned off-campus properties | $ | 15,184 | $ | 8,944 | $ | 6,240 | $ | 42,437 | $ | 24,659 | $ | 17,778 | |||||||||||||
On-campus participating properties | 3,637 | 3,328 | 309 | 12,263 | 11,823 | 440 | |||||||||||||||||||
Third party development services | 2,017 | 537 | 1,480 | 3,994 | 4,738 | (744 | ) | ||||||||||||||||||
Third party management services | 783 | 535 | 248 | 2,055 | 1,307 | 748 | |||||||||||||||||||
Resident services | 256 | 114 | 142 | 676 | 114 | 562 | |||||||||||||||||||
Total revenues | 21,877 | 13,458 | 8,419 | 61,425 | 42,641 | 18,784 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
Owned off-campus properties | 8,386 | 5,254 | 3,132 | 20,395 | 12,457 | 7,938 | |||||||||||||||||||
On-campus participating properties | 2,173 | 2,032 | 141 | 6,034 | 5,873 | 161 | |||||||||||||||||||
Third party development and management services | 1,609 | 1,330 | 279 | 4,646 | 4,121 | 525 | |||||||||||||||||||
General and administrative | 1,534 | 2,912 | (1,378 | ) | 4,823 | 3,920 | 903 | ||||||||||||||||||
Depreciation and amortization | 4,269 | 2,619 | 1,650 | 12,143 | 7,150 | 4,993 | |||||||||||||||||||
Ground/facility leases | 245 | 302 | (57 | ) | 697 | 664 | 33 | ||||||||||||||||||
Total operating expenses | 18,216 | 14,449 | 3,767 | 48,738 | 34,185 | 14,553 | |||||||||||||||||||
Operating income (loss) | 3,661 | (991 | ) | 4,652 | 12,687 | 8,456 | 4,231 | ||||||||||||||||||
Nonoperating income and (expenses): | |||||||||||||||||||||||||
Interest income | 396 | 32 | 364 | 498 | 57 | 441 | |||||||||||||||||||
Interest expense | (4,319 | ) | (4,678 | ) | 359 | (12,761 | ) | (13,148 | ) | 387 | |||||||||||||||
Amortization of deferred financing costs | (318 | ) | (691 | ) | 373 | (840 | ) | (979 | ) | 139 | |||||||||||||||
Other nonoperating income | - | 371 | (371 | ) | 430 | 371 | 59 | ||||||||||||||||||
Total nonoperating expenses | (4,241 | ) | (4,966 | ) | 725 | (12,673 | ) | (13,699 | ) | 1,026 | |||||||||||||||
(Loss) income before income taxes, minority interests, | |||||||||||||||||||||||||
and discontinued operations | (580 | ) | (5,957 | ) | 5,377 | 14 | (5,243 | ) | 5,257 | ||||||||||||||||
- | - | ||||||||||||||||||||||||
Income tax (provision) benefit | (6 | ) | 757 | (763 | ) | (6 | ) | 757 | (763 | ) | |||||||||||||||
- | - | ||||||||||||||||||||||||
Minority interests | (10 | ) | 86 | (96 | ) | (85 | ) | 130 | (215 | ) | |||||||||||||||
Loss from continuing operations | (596 | ) | (5,114 | ) | 4,518 | (77 | ) | (4,356 | ) | 4,279 | |||||||||||||||
Discontinued operations: | |||||||||||||||||||||||||
Loss attributable to discontinued operations | - | (94 | ) | 94 | (2 | ) | (284 | ) | 282 | ||||||||||||||||
Gain (loss) from disposition of real estate | - | - | - | 5,883 | (39 | ) | 5,922 | ||||||||||||||||||
Total discontinued operations | - | (94 | ) | 94 | 5,881 | (323 | ) | 6,204 | |||||||||||||||||
Net (loss) income | $ | (596 | ) | $ | (5,208 | ) | $ | 4,612 | $ | 5,804 | $ | (4,679 | ) | $ | 10,483 | ||||||||||
Net (loss) income per share - basic | $ | (0.04 | ) | $ | (0.13 | ) | (1 | ) | $ | 0.41 | $ | (0.13 | ) | (1 | ) | ||||||||||
Net (loss) income per share - diluted | $ | (0.03 | ) | $ | (0.12 | ) | (1 | ) | $ | 0.41 | $ | (0.12 | ) | (1 | ) | ||||||||||
Weighted-average common shares outstanding: | |||||||||||||||||||||||||
Basic | 17,005,462 | 12,290,256 | (1 | ) | 14,100,631 | 12,290,256 | (1 | ) | |||||||||||||||||
Diluted | 17,126,462 | 12,411,256 | (1 | ) | 14,263,981 | 12,411,256 | (1 | ) | |||||||||||||||||
(1) Share and per share amounts represent the period from August 17, 2004, the date of the Company's initial public offering, through September 30, 2004. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
2005 | 2004 | $ Change | 2005 | 2004 | $ Change | ||||||||||||||||||||
Net (loss) income | $ | (596 | ) | $ | (5,208 | ) | $ | 4,612 | $ | 5,804 | $ | (4,679 | ) | $ | 10,483 | ||||||||||
Minority interests | 10 | (86 | ) | 96 | 85 | (130 | ) | 215 | |||||||||||||||||
(Gain) loss from disposition of real estate | - | - | - | (5,883 | ) | 39 | (5,922 | ) | |||||||||||||||||
Real estate related depreciation and amortization | 4,153 | 2,653 | 1,500 | 11,823 | 7,218 | 4,605 | |||||||||||||||||||
Funds from operations ("FFO") | 3,567 | (2,641 | ) | 6,208 | 11,829 | 2,448 | 9,381 | ||||||||||||||||||
Elimination of operations of on-campus participating properties: | |||||||||||||||||||||||||
Net loss from on-campus participating properties | 966 | 968 | (2 | ) | 897 | 909 | (12 | ) | |||||||||||||||||
Amortization of investment in on-campus participating properties | (913 | ) | (950 | ) | 37 | (2,675 | ) | (2,660 | ) | (15 | ) | ||||||||||||||
3,620 | (2,623 | ) | 6,243 | 10,051 | 697 | 9,354 | |||||||||||||||||||
Modifications to reflect operational performance of on-campus | |||||||||||||||||||||||||
participating properties: | |||||||||||||||||||||||||
Our share of net cash flow (1) | 245 | 302 | (57 | ) | 697 | 698 | (1 | ) | |||||||||||||||||
Management fees | 167 | 158 | 9 | 588 | 586 | 2 | |||||||||||||||||||
On-campus participating property development fees (2) | 253 | - | 253 | 1,068 | - | 1,068 | |||||||||||||||||||
Impact of on-campus participating properties | 665 | 460 | 205 | 2,353 | 1,284 | 1,069 | |||||||||||||||||||
Funds from operations – modified for operational performance | |||||||||||||||||||||||||
of on-campus participating properties ("FFOM") | $ | 4,285 | $ | (2,163 | ) | $ | 6,448 | $ | 12,404 | $ | 1,981 | $ | 10,423 | ||||||||||||
FFO per share | |||||||||||||||||||||||||
Basic | $ | 0.21 | $ | (0.01 | ) | (3 | ) | $ | 0.84 | $ | (0.01 | ) | (3 | ) | |||||||||||
Diluted | $ | 0.21 | $ | (0.01 | ) | (3 | ) | $ | 0.83 | $ | (0.01 | ) | (3 | ) | |||||||||||
FFOM per share | |||||||||||||||||||||||||
Basic | $ | 0.25 | $ | (0.02 | ) | (3 | ) | $ | 0.88 | $ | (0.02 | ) | (3 | ) | |||||||||||
Diluted | $ | 0.25 | $ | (0.02 | ) | (3 | ) | $ | 0.87 | $ | (0.02 | ) | (3 | ) | |||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||||
Basic | 17,005,462 | 12,290,256 | (3 | ) | 14,100,631 | 12,290,256 | (3 | ) | |||||||||||||||||
Diluted | 17,174,663 | 12,411,256 | (3 | ) | 14,263,981 | 12,411,256 | (3 | ) | |||||||||||||||||
(1) 50% of the properties’ net cash available for distribution after payment of operating expenses, debt service (including repayment of principal) and capital expenditures. | |||||||||||||||||||||||||
Represents amounts accrued for the interim periods. | |||||||||||||||||||||||||
(2) Development and construction management fees related to the Cullen Oaks Phase II on-campus participating property, which was completed in August 2005. | |||||||||||||||||||||||||
(3) Share and per share amounts represent the period from August 17, 2004, the date of the Company's initial public offering, through September 30, 2004. |
Total Debt (1) | $ | 196,456 | |||||||||||
Total Market Value (2) | 417,266 | ||||||||||||
Total Market Capitalization | $ | 613,722 | |||||||||||
Debt to Total Market Capitalization | 32.0 | % | |||||||||||
Interest Coverage (3) | 2.18 | ||||||||||||
Fixed Charge Coverage (3) | 1.65 | ||||||||||||
Principal Outstanding (1) | Weighted Average Interest Rate | Average Term to Maturity | |||||||||||
Fixed Rate Mortgage (1) | $ | 196,456 | 6.90 | % | 6.4 Years | ||||||||
Variable Rate Unsecured Revolving Credit Facility | - | - | 1.9 Years | ||||||||||
Total / Weighted Average | $ | 196,456 | 6.90 | % | 6.4 Years |
(1) Excluding debt related to our on-campus participating properties totaling $90.7 million with a weighted average interest rate of 6.72% and average term to | ||||||||||||
maturity of 12.8 years. Also excludes unamortized debt premiums of $4.6 million. | ||||||||||||
(2) Based on share price of $24.02 at September 30, 2005. | ||||||||||||
(3) Represents operating performance for the four most recently completed fiscal quarters. Excludes interest and fixed charges associated with our on-campus participating properties. |
Physical Occupancy at September 30, | ||||||||||||||||||||||
Property | Primary University Served | Units | Beds | 2005 | 2004 | |||||||||||||||||
Owned off-campus properties: | ||||||||||||||||||||||
1. Commons On Apache | Arizona State University Main Campus | 111 | 444 | 100.0 | % | (1 | ) | 100.0 | % | (1 | ) | |||||||||||
2. The Village at Blacksburg | Virginia Tech University | 288 | 1,056 | 99.1 | % | 98.6 | % | |||||||||||||||
3. The Village on University | Arizona State University Main Campus | 288 | 918 | 98.5 | % | 96.6 | % | |||||||||||||||
4. River Club Apartments | The University of Georgia – Athens | 266 | 794 | 98.6 | % | 92.7 | % | |||||||||||||||
5. River Walk Townhomes | The University of Georgia – Athens | 100 | 340 | 97.9 | % | 98.2 | % | |||||||||||||||
6. The Callaway House | Texas A&M University | 173 | 538 | 103.7 | % | 102.2 | % | |||||||||||||||
7. The Village at Alafaya Club | The University of Central Florida | 228 | 840 | 98.7 | % | 95.5 | % | |||||||||||||||
8. The Village at Science Drive | The University of Central Florida | 192 | 732 | 99.5 | % | 99.5 | % | |||||||||||||||
9. University Village at Boulder Creek | The University of Colorado at Boulder | 82 | 309 | 93.2 | % | 86.1 | % | |||||||||||||||
10. University Village at Fresno | California State University – Fresno | 105 | 406 | 95.8 | % | 99.8 | % | |||||||||||||||
11. University Village at TU | Temple University | 220 | 749 | 98.1 | % | 99.6 | % | |||||||||||||||
Subtotal - Same Store Properties | 2,053 | 7,126 | 98.8 | % | 97.4 | % | ||||||||||||||||
12. University Village at Sweethome (2) | State University of New York – Buffalo | 269 | 828 | 100.0 | % | |||||||||||||||||
13. University Club Tallahassee | Florida State University | 152 | 608 | 99.2 | % | |||||||||||||||||
14. The Grove at University Club | Florida State University | 64 | 128 | 97.7 | % | |||||||||||||||||
15. College Club Tallahassee | Florida A&M University | 96 | 384 | 96.6 | % | |||||||||||||||||
16. The Greens at College Club | Florida A&M University | 40 | 160 | 98.8 | % | |||||||||||||||||
17. University Club Gainesville | University of Florida | 94 | 376 | 96.0 | % | |||||||||||||||||
18. City Parc at Fry Street | University of North Texas | 136 | 418 | 99.5 | % | |||||||||||||||||
19. The Estates | University of Florida | 396 | 1,044 | 99.1 | % | |||||||||||||||||
20. Callaway Villas (3) | Texas A&M University | 236 | 704 | n/a | ||||||||||||||||||
21. Village at Newark (4) | Rutgers University, NJIT, Essex CCC | 221 | 812 | n/a | ||||||||||||||||||
Subtotal - New Properties | 1,704 | 5,462 | 98.8 | % | (5 | ) | ||||||||||||||||
Total owned off-campus properties | 3,757 | 12,588 | 98.8 | % | (5 | ) | ||||||||||||||||
On-campus participating properties: | ||||||||||||||||||||||
22. University Village—PVAMU | Prairie View A&M University | 612 | 1,920 | 99.1 | % | 99.6 | % | |||||||||||||||
23. University College—PVAMU | Prairie View A&M University | 756 | 1,470 | 86.4 | % | 99.9 | % | |||||||||||||||
24. University Village—TAMIU | Texas A&M International University | 84 | 252 | 73.8 | % | 70.6 | % | |||||||||||||||
25. Cullen Oaks - Phase I and II (6) | The University of Houston | 411 | 879 | 99.9 | % | 99.6 | % | |||||||||||||||
Total on-campus participating properties | 1,863 | 4,521 | 93.7 | % | 98.0 | % | ||||||||||||||||
Total - all properties | 5,620 | 17,109 | 97.3 | % | (5 | ) | 97.6 | % | ||||||||||||||
(1) Commons on Apache is 100% leased from August 2004 through July 2006 by Arizona State University. | ||||||||||||||||||||||
(2) Construction was completed and property commenced operations in August 2005. | ||||||||||||||||||||||
(3) Currently under development - scheduled to open for occupancy in August 2006. | ||||||||||||||||||||||
(4) Currently under development - scheduled to open for occupancy in Fall 2007. Pending approval from the City of Newark's Central Planning Board, the project's capacity can be | ||||||||||||||||||||||
increased to 838 beds without modifying the existing building area. | ||||||||||||||||||||||
(5) Excludes properties that are currently under development. | ||||||||||||||||||||||
(6) Includes an additional phase consisting of 180 units and 354 beds that was completed in August 2005. Occupancy as of September 30, 2004 does not include the additional phase. | ||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
2005 | 2004 | $ Change | % Change | 2005 | 2004 | $ Change | % Change | ||||||||||||||||||
Property revenues | |||||||||||||||||||||||||
Owned off-campus properties: | |||||||||||||||||||||||||
Same store properties | $ | 8,109 | $ | 7,982 | $ | 127 | 1.6 | % | $ | 25,231 | $ | 23,697 | $ | 1,534 | 6.5 | % | |||||||||
New properties | 7,331 | 1,076 | 6,255 | 581.3 | % | 17,882 | 1,076 | 16,806 | 1561.9 | % | |||||||||||||||
Total owned off-campus properties (1) | 15,440 | 9,058 | 6,382 | 70.5 | % | 43,113 | 24,773 | 18,340 | 74.0 | % | |||||||||||||||
On-campus participating properties: | |||||||||||||||||||||||||
Same store properties | 3,466 | 3,328 | 138 | 4.1 | % | 12,092 | 11,823 | 269 | 2.3 | % | |||||||||||||||
New properties | 171 | - | 171 | 100.0 | % | 171 | - | 171 | 100.0 | % | |||||||||||||||
Total on-campus participating properties | 3,637 | 3,328 | 309 | 9.3 | % | 12,263 | 11,823 | 440 | 3.7 | % | |||||||||||||||
Total property revenues | $ | 19,077 | $ | 12,386 | $ | 6,691 | 54.0 | % | $ | 55,376 | $ | 36,596 | $ | 18,780 | 51.3 | % | |||||||||
Property operating expenses | |||||||||||||||||||||||||
Owned off-campus properties: | |||||||||||||||||||||||||
Same store properties | $ | 4,505 | $ | 4,540 | $ | (35 | ) | -0.8 | % | $ | 11,783 | $ | 11,743 | $ | 40 | 0.3 | % | ||||||||
New properties | 3,881 | 714 | 3,167 | 443.6 | % | 8,612 | 714 | 7,898 | 1106.2 | % | |||||||||||||||
Total owned off-campus properties | 8,386 | 5,254 | 3,132 | 59.6 | % | 20,395 | 12,457 | 7,938 | 63.7 | % | |||||||||||||||
On-campus participating properties: | |||||||||||||||||||||||||
Same store properties | 2,096 | 2,032 | 64 | 3.1 | % | 5,957 | 5,873 | 84 | 1.4 | % | |||||||||||||||
New properties | 77 | - | 77 | 100.0 | % | 77 | - | 77 | 100.0 | % | |||||||||||||||
Total on-campus participating properties | 2,173 | 2,032 | 141 | 6.9 | % | 6,034 | 5,873 | 161 | 2.7 | % | |||||||||||||||
Total property operating expenses | $ | 10,559 | $ | 7,286 | $ | 3,273 | 44.9 | % | $ | 26,429 | $ | 18,330 | $ | 8,099 | 44.2 | % | |||||||||
Property net operating income | |||||||||||||||||||||||||
Owned off-campus properties: | |||||||||||||||||||||||||
Same store properties | $ | 3,604 | $ | 3,442 | $ | 162 | 4.7 | % | $ | 13,448 | $ | 11,954 | $ | 1,494 | 12.5 | % | |||||||||
New properties | 3,450 | 362 | 3,088 | 853.0 | % | 9,270 | 362 | 8,908 | 2460.8 | % | |||||||||||||||
Total owned off-campus properties | 7,054 | 3,804 | 3,250 | 85.4 | % | 22,718 | 12,316 | 10,402 | 84.5 | % | |||||||||||||||
On-campus participating properties: | |||||||||||||||||||||||||
Same store properties | 1,370 | 1,296 | 74 | 5.7 | % | 6,135 | 5,950 | 185 | 3.1 | % | |||||||||||||||
New properties | 94 | - | 94 | 100.0 | % | 94 | - | 94 | 100.0 | % | |||||||||||||||
Total on-campus participating properties | 1,464 | 1,296 | 168 | 13.0 | % | 6,229 | 5,950 | 279 | 4.7 | % | |||||||||||||||
Total property net operating income | $ | 8,518 | $ | 5,100 | $ | 3,418 | 67.0 | % | $ | 28,947 | $ | 18,266 | $ | 10,681 | 58.5 | % | |||||||||
(1) Includes revenues earned at properties related to non-customary activities, which subsequent to our IPO are reflected as Resident Services revenue on the accompanying | |||||||||||||||||||||||||
consolidated statements of operations |
Three Months Ended | |||||||||||||||||||||||||||||||
December 31, 2004 | March 31, 2005 | June 30, 2005 | September 30, 2005 | Total | |||||||||||||||||||||||||||
Owned off-campus properties - 12-month leases (9 properties): | |||||||||||||||||||||||||||||||
Revenues | $ | 7,764 | 24 | % | $ | 7,969 | 25 | % | $ | 7,986 | 25 | % | $ | 8,163 | 26 | % | $ | 31,882 | 100 | % | |||||||||||
Property operating expenses and estimated management costs (2) | 2,785 | 22 | % | 2,897 | 23 | % | 3,047 | 25 | % | 3,730 | 30 | % | 12,459 | 100 | % | ||||||||||||||||
Subtotal | $ | 4,979 | 26 | % | $ | 5,072 | 26 | % | $ | 4,939 | 25 | % | $ | 4,433 | 23 | % | $ | 19,423 | 100 | % | |||||||||||
Occupancy at period end | 97.3 | % | 97.5 | % | 97.4 | % | 98.3 | % | |||||||||||||||||||||||
Owned off-campus properties - less than 12-month leases (2 properties): | |||||||||||||||||||||||||||||||
Revenues | $ | 2,947 | 28 | % | $ | 3,048 | 29 | % | $ | 2,499 | 23 | % | $ | 2,116 | 20 | % | $ | 10,610 | 100 | % | |||||||||||
Property operating expenses and estimated management costs (2) | 1,247 | 23 | % | 1,257 | 24 | % | 1,259 | 24 | % | 1,542 | 29 | % | 5,305 | 100 | % | ||||||||||||||||
Subtotal | $ | 1,700 | 32 | % | $ | 1,791 | 34 | % | $ | 1,240 | 23 | % | $ | 574 | 11 | % | $ | 5,305 | 100 | % | |||||||||||
Occupancy at period end | 97.6 | % | 99.9 | % | 38.3 | % | 100.4 | % | |||||||||||||||||||||||
Total owned off-campus properties (11 properties): | |||||||||||||||||||||||||||||||
Revenues | $ | 10,711 | 25 | % | $ | 11,017 | 26 | % | $ | 10,485 | 25 | % | $ | 10,279 | 24 | % | $ | 42,492 | 100 | % | |||||||||||
Property operating expenses and estimated management costs (2) | 4,032 | 23 | % | 4,154 | 23 | % | 4,306 | 24 | % | 5,272 | 30 | % | 17,764 | 100 | % | ||||||||||||||||
Subtotal | $ | 6,679 | 27 | % | $ | 6,863 | 28 | % | $ | 6,179 | 25 | % | $ | 5,007 | 20 | % | $ | 24,728 | 100 | % | |||||||||||
Occupancy at period end | 97.4 | % | 98.0 | % | 85.3 | % | 98.8 | % | |||||||||||||||||||||||
On-campus participating properties - less than 12-month leases (4 properties): | |||||||||||||||||||||||||||||||
Revenues and interest income | $ | 5,612 | 31 | % | $ | 5,517 | 31 | % | $ | 3,160 | 18 | % | $ | 3,519 | 20 | % | $ | 17,808 | 100 | % | |||||||||||
Property operating expenses and estimated management costs (2) | 2,293 | 27 | % | 1,979 | 24 | % | 2,036 | 24 | % | 2,111 | 25 | % | 8,419 | 100 | % | ||||||||||||||||
Subtotal | $ | 3,319 | 35 | % | $ | 3,538 | 38 | % | $ | 1,124 | 12 | % | $ | 1,408 | 15 | % | $ | 9,389 | 100 | % | |||||||||||
Occupancy at period end | 96.9 | % | 93.1 | % | 14.1 | % | 93.2 | % | |||||||||||||||||||||||
Grand total - all properties (15 properties): | |||||||||||||||||||||||||||||||
Revenues | $ | 16,323 | 27 | % | $ | 16,534 | 27 | % | $ | 13,645 | 23 | % | $ | 13,798 | 23 | % | $ | 60,300 | 100 | % | |||||||||||
Property operating expenses and estimated management costs (2) | 6,325 | 24 | % | 6,133 | 23 | % | 6,342 | 24 | % | 7,383 | 28 | % | 26,183 | 100 | % | ||||||||||||||||
Subtotal | $ | 9,998 | 29 | % | $ | 10,401 | 31 | % | $ | 7,303 | 21 | % | $ | 6,415 | 19 | % | $ | 34,117 | 100 | % | |||||||||||
Occupancy at period end | 97.2 | % | 96.2 | % | 59.0 | % | 96.7 | % | |||||||||||||||||||||||
(1) For purposes of the seasonal trend analysis, the following properties are excluded: 2005 acquisitions, 2005 dispositions, and properties under construction during 2005. | |||||||||||||||||||||||||||||||
Only those assets that were owned and operated during all four quarters are reflected. | |||||||||||||||||||||||||||||||
(2) Represents direct property expenses and estimated management costs for owned off-campus properties at 2.5% of revenues, whereas on-campus participating properties operating expenses | |||||||||||||||||||||||||||||||
include actual management costs. |
PROJECTS UNDER CONSTRUCTION | |||||||||||||||||||||||||
Project | Location | Primary University Served | Units | Beds | Estimated Project Costs | % Complete (1) | Scheduled to Open for Occupancy | ||||||||||||||||||
Callaway Villas | College Station, TX | Texas A&M University | 236 | 704 | $ | 37,475 | 7 | % | August 2006 | ||||||||||||||||
Village at Newark | Newark, NJ | Rutgers University, NJIT, Essex CCC | 221 | 812 | (2 | ) | 72,935 | 1 | % | Fall 2007 | |||||||||||||||
$ | 110,410 | ||||||||||||||||||||||||
PROJECTS IN PRE-DEVELOPMENT | |||||||||||||||||||||||||
Project | Location | Anticipated Commencement | Targeted Units | Targeted Beds | Estimated Project Cost | Targeted Completion | |||||||||||||||||||
Arizona State University (3) | Tempe, AZ | ||||||||||||||||||||||||
Component I | Second Quarter 2006 | 625 | 1,600 | $ | 110,000 | August 2007 | |||||||||||||||||||
Component II | Second Quarter 2007 | 700 | 2,000 | 115,000 | August 2008 | ||||||||||||||||||||
Component III | Second Quarter 2008 | 575 | 1,500 | 110,000 | August 2009 | ||||||||||||||||||||
$ | 335,000 | ||||||||||||||||||||||||
(1) As of September 30, 2005. | |||||||||||||||||||||||||
(2) Pending approval from the City of Newark's Central Planning Board, the project's capacity can be increased to 838 beds without modifying the existing building area. | |||||||||||||||||||||||||
(3) Component developments are contingent upon the execution of a Memorandum of Understanding ("MOU"), Board of Regents approval on each Component, and execution of | |||||||||||||||||||||||||
all transactional documents. |
Three Months Ended Sept. 30, | Nine Months Ended Sept. 30, | ||||||||||||||||||
2005 | 2004 | $ Change | 2005 | 2004 | $ Change | ||||||||||||||
Development services revenue | $ | 2,017 | $ | 537 | $ | 1,480 | $ | 3,994 | $ | 4,738 | $ | (744 | ) | ||||||
% of total revenue | 9.2 | % | 4.0 | % | 6.5 | % | 11.1 | % |
RECENTLY COMPLETED PROJECTS | Completion Date | |||||||||||||||||||||
Project | Location | Primary University Served | Units | Beds | Total Fees | |||||||||||||||||
Cullen Oaks Phase II | Houston, TX | University of Houston | 180 | 354 | $ 1,117 | August 2005 | ||||||||||||||||
Saint Leo University Phase II | Saint Leo, FL | Saint Leo University | 87 | 320 | 375 | August 2005 | ||||||||||||||||
$ 1,492 |
CONTRACTED PROJECTS IN PROGRESS | ||||||||||||||||||||||
Project | Location | Primary University Served | Units | Beds | Total Fees | Fees Earned to Date (1) | Remaining Fees (1) | Scheduled Completion | ||||||||||||||
Vista del Campo Phase II | Irvine, CA | University of California - Irvine | 545 | 1,564 | $ 3,500 | $ 1,622 | $ 1,878 | August 2006 | ||||||||||||||
West Virginia University - Evansdale (2) | Morgantown, WV | West Virginia University | 96 | 345 | 725 | 455 | 270 | August 2006 | ||||||||||||||
Fenn Tower Renovation | Cleveland, OH | Cleveland State University | 174 | 438 | 1,510 | 576 | 934 | August 2006 | ||||||||||||||
Cardinal Village Dining Hall | Beaumont, TX | Lamar University | n/a | n/a | 110 | 88 | 22 | November 2005 | ||||||||||||||
The Inn at Auraria | Denver, CO | Auraria Higher Education System | 125 | 439 | 300 | 188 | 112 | August 2006 | ||||||||||||||
West Virginia University - Potomac State (3) | Keyser, WV | Potomac State College | 107 | 355 | 700 | 230 | 470 | August 2007 | ||||||||||||||
$ 6,845 | $ 3,159 | $ 3,686 |
AWARDED PROJECTS | ||||||||||||||||||||||
Project | Location | Anticipated Commencement | Estimated Fees | |||||||||||||||||||
Blinn College | Brenham, TX | Fourth Quarter 2005 | $ 650 | |||||||||||||||||||
West Virginia University - Downtown (4) | Morgantown, WV | Fourth Quarter 2005 | 650 | |||||||||||||||||||
University of Hawaii - Manoa | Honolulu, HI | Second or Third Quarter 2006 | 2,285 | |||||||||||||||||||
University of New Orleans (5) | New Orleans, LA | Undetermined | 1,550 | |||||||||||||||||||
Hope International University (6) | Fullerton, CA | Undetermined | - | |||||||||||||||||||
$ 5,135 | ||||||||||||||||||||||
(1) As of September 30, 2005 | ||||||||||||||||||||||
(2) The West Virginia - Evansdale project consists of pre-development and design services which were completed in the third quarter 2005 and construction administration services which are currently | ||||||||||||||||||||||
in progress. Contractual fees are shown net of costs anticipated to be incurred to complete the project. | ||||||||||||||||||||||
(3) The West Virginia - Potomac State project consists of pre-development and design services which are currently in progress and construction administration services which are scheduled to commence | ||||||||||||||||||||||
in the third quarter 2006. Contractual fees are shown net of costs anticipated to be incurred to complete the project. | ||||||||||||||||||||||
(4) We will provide pre-development, design, and construction administration services. Estimated fees are shown net of costs anticipated to be incurred to complete the project. | ||||||||||||||||||||||
(5) Hurricane Katrina has caused a delay in the commencement of construction for the third-party development of the University of New Orleans housing project. The University has expressed their commitment | ||||||||||||||||||||||
to this project moving forward and is in the process of establishing a definitive timeline. | ||||||||||||||||||||||
(6) Currently in the strategic planning phase and in the process of determining project size and scope. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2005 | 2004 | $ Change | 2005 | 2004 | $ Change | |||||||||||||
Management services revenue | $ 783 | $ 535 | $ 248 | $ 2,055 | $ 1,307 | $ 748 | ||||||||||||
% of total revenue | 3.6% | 3.9% | 3.3% | 3.1% | ||||||||||||||
NEW MANAGEMENT CONTRACTS | ||||||||||||||||||
Property | Location | University | Units | Beds | Estimated Annual Fees | Anticipated Commencement | ||||||||||||
Fenn Tower | Cleveland, OH | Cleveland State University | 174 | 438 | $ 100 | August 2006 | ||||||||||||
The Inn at Auraria | Denver , CO | Auraria Higher Education System | 125 | 439 | 145 | August 2006 | ||||||||||||
Vista del Campo Phase II | Irvine, CA | University of California Irvine | 545 | 1,564 | 400 | August 2006 | ||||||||||||
$ 645 | ||||||||||||||||||
DEVELOPMENT AWARDS WITH ANTICIPATED MANAGEMENT | ||||||||||||||||||
University | Location | Anticipated Commencement | ||||||||||||||||
Blinn College | Brenham, TX | August 2006 | ||||||||||||||||
Arizona State University | Tempe, AZ | August 2007 | ||||||||||||||||
University of Hawaii - Manoa | Honolulu, HI | August 2007 |
Contact Name | Title | Phone | E-mail | |||||||
William C. Bayless, Jr. | Chief Executive Officer | (512) 732-1020 | bbayless@studenthousing.com | |||||||
Brian B. Nickel | Chief Financial Officer | (512) 732-1045 | bnickel@studenthousing.com | |||||||
Gina Cowart | Investor Relations | (512) 732-1041 | gcowart@studenthousing.com | |||||||
Corporate Headquarters | ||||||||||
American Campus Communities, Inc. | ||||||||||
805 Las Cimas Parkway | ||||||||||
Suite 400 | ||||||||||
Austin, Texas 78746 | ||||||||||
Tel: (512) 732-1000 | ||||||||||
Fax: (512) 732-2450 | ||||||||||
www.americancampuscommunities.com | ||||||||||
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.