Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 26, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | AMERICAN CAMPUS COMMUNITIES INC | |
Entity Central Index Key | 0001283630 | |
Trading Symbol | acc | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock Shares Outstanding (in shares) | 137,260,121 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | ||
Document Information [Line Items] | ||
Entity Registrant Name | American Campus Communities Operating Partnership LP | |
Entity Central Index Key | 0001357369 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Investments in real estate: | ||
Investments in real estate, net | $ 6,694,147 | $ 6,661,034 |
Cash and cash equivalents | 46,166 | 71,238 |
Restricted cash | 33,689 | 35,279 |
Student contracts receivable | 14,056 | 8,565 |
Other assets | 537,390 | 262,730 |
Total assets | 7,325,448 | 7,038,846 |
Liabilities: | ||
Secured mortgage, construction and bond debt, net | 864,070 | 853,084 |
Accounts payable and accrued expenses | 58,439 | 88,767 |
Operating lease liabilities | 282,550 | |
Other liabilities | 185,234 | 191,233 |
Total liabilities | 3,635,646 | 3,307,599 |
Commitments and contingencies (Note 12) | ||
Redeemable noncontrolling interests | 186,695 | 184,446 |
American Campus Communities, Inc. and Subsidiaries stockholders’ equity: | ||
Common stock, $0.01 par value, 800,000,000 shares authorized, 137,188,689 and 136,967,286 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively | 1,370 | 1,370 |
Additional paid in capital | 4,455,948 | 4,458,240 |
Common stock held in rabbi trust, 71,432 and 69,603 shares at March 31, 2019 and December 31, 2018, respectively | (3,162) | (3,092) |
Accumulated earnings and dividends | (1,005,041) | (971,070) |
Accumulated other comprehensive loss | (10,191) | (4,397) |
Total American Campus Communities, Inc. and Subsidiaries stockholders’ equity | 3,438,924 | 3,481,051 |
Total equity | 3,503,107 | 3,546,801 |
Partners’ capital: | ||
Accumulated other comprehensive loss | (10,191) | (4,397) |
Total liabilities and equity / capital | 7,325,448 | 7,038,846 |
Owned properties, net | ||
Investments in real estate: | ||
Investments in real estate, net | 6,606,019 | 6,583,397 |
Owned property held for sale | ||
Investments in real estate: | ||
Investments in real estate, net | 9,258 | 0 |
On-campus participating properties, net | ||
Investments in real estate: | ||
Investments in real estate, net | 78,870 | 77,637 |
Partially owned properties | ||
American Campus Communities, Inc. and Subsidiaries stockholders’ equity: | ||
Noncontrolling interests - partially owned properties | 64,183 | 65,750 |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | ||
Investments in real estate: | ||
Investments in real estate, net | 6,694,147 | 6,661,034 |
Cash and cash equivalents | 46,166 | 71,238 |
Restricted cash | 33,689 | 35,279 |
Student contracts receivable | 14,056 | 8,565 |
Other assets | 537,390 | 262,730 |
Total assets | 7,325,448 | 7,038,846 |
Liabilities: | ||
Secured mortgage, construction and bond debt, net | 864,070 | 853,084 |
Accounts payable and accrued expenses | 58,439 | 88,767 |
Operating lease liabilities | 282,550 | |
Other liabilities | 185,234 | 191,233 |
Total liabilities | 3,635,646 | 3,307,599 |
Commitments and contingencies (Note 12) | ||
Redeemable noncontrolling interests | 186,695 | 184,446 |
American Campus Communities, Inc. and Subsidiaries stockholders’ equity: | ||
Accumulated other comprehensive loss | (10,191) | (4,397) |
Partners’ capital: | ||
General partner - 12,222 OP units outstanding at both March 31, 2019 and December 31, 2018 | 52 | 55 |
Limited partner - 137,247,899 and 137,024,667 OP units outstanding at March 31, 2019 and December 31, 2018, respectively | 3,449,063 | 3,485,393 |
Accumulated other comprehensive loss | (10,191) | (4,397) |
Total partners’ capital | 3,438,924 | 3,481,051 |
Total capital | 3,503,107 | 3,546,801 |
Total liabilities and equity / capital | 7,325,448 | 7,038,846 |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | Owned properties, net | ||
Investments in real estate: | ||
Investments in real estate, net | 6,606,019 | 6,583,397 |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | Owned property held for sale | ||
Investments in real estate: | ||
Investments in real estate, net | 9,258 | 0 |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | On-campus participating properties, net | ||
Investments in real estate: | ||
Investments in real estate, net | 78,870 | 77,637 |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | Partially owned properties | ||
Partners’ capital: | ||
Noncontrolling interests - partially owned properties | 64,183 | 65,750 |
Unsecured notes, net | ||
Liabilities: | ||
Unsecured debt | 1,589,096 | 1,588,446 |
Unsecured notes, net | AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | ||
Liabilities: | ||
Unsecured debt | 1,589,096 | 1,588,446 |
Unsecured term loans, net | ||
Liabilities: | ||
Unsecured debt | 198,857 | 198,769 |
Unsecured term loans, net | AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | ||
Liabilities: | ||
Unsecured debt | 198,857 | 198,769 |
Unsecured revolving credit facility | ||
Liabilities: | ||
Unsecured debt | 457,400 | 387,300 |
Unsecured revolving credit facility | AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | ||
Liabilities: | ||
Unsecured debt | $ 457,400 | $ 387,300 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 |
Common stock, shares issued (in shares) | 137,188,689 | 136,967,286 |
Common stock, shares outstanding (in shares) | 137,188,689 | 136,967,286 |
Common stock held in Rabbi Trust (in shares) | 71,432 | 69,603 |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | ||
General partner, OP units outstanding (in units) | 12,222 | 12,222 |
Limited partner, OP units outstanding (in units) | 137,247,899 | 137,024,667 |
Investments in real estate, net | ||
Consolidated variable interest entities' assets | $ 1,056,632 | $ 1,042,585 |
Investments in real estate, net | AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | ||
Consolidated variable interest entities' assets | 1,056,632 | 1,042,585 |
Cash, cash equivalents and restricted cash | ||
Consolidated variable interest entities' assets | 52,282 | 72,218 |
Cash, cash equivalents and restricted cash | AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | ||
Consolidated variable interest entities' assets | 52,282 | 72,218 |
Other assets | ||
Consolidated variable interest entities' assets | 17,747 | 11,918 |
Other assets | AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | ||
Consolidated variable interest entities' assets | 17,747 | 11,918 |
Secured mortgage and construction debt, net | ||
Consolidated variable interest entities' liabilities | 465,744 | 447,292 |
Secured mortgage and construction debt, net | AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | ||
Consolidated variable interest entities' liabilities | 465,744 | 447,292 |
Accounts payable, accrued expenses and other liabilities | ||
Consolidated variable interest entities' liabilities | 47,981 | 53,432 |
Accounts payable, accrued expenses and other liabilities | AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | ||
Consolidated variable interest entities' liabilities | $ 47,981 | $ 53,432 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues: | ||
Total revenues | $ 242,131 | $ 220,409 |
Operating expenses: | ||
Third-party development and management services | 4,186 | 4,198 |
General and administrative | 7,315 | 6,699 |
Depreciation and amortization | 68,755 | 64,779 |
Ground/facility leases | 3,549 | 2,842 |
Provision for real estate impairment | 3,201 | 0 |
Total operating expenses | 183,132 | 170,003 |
Operating income | 58,999 | 50,406 |
Nonoperating income (expenses): | ||
Interest income | 926 | 1,223 |
Interest expense | (27,061) | (23,684) |
Amortization of deferred financing costs | (1,132) | (1,414) |
Total nonoperating expenses | (27,267) | (23,875) |
Income before income taxes | 31,732 | 26,531 |
Income tax provision | (364) | (281) |
Net income | 31,368 | 26,250 |
Net income attributable to noncontrolling interests | (1,728) | (323) |
Net income attributable to ACC, Inc. and Subsidiaries common stockholders | 29,640 | 25,927 |
Other comprehensive (loss) income | ||
Change in fair value of interest rate swaps and other | (5,794) | 465 |
Comprehensive income | $ 23,846 | $ 26,392 |
Net income per share attributable to ACC, Inc. and Subsidiaries common shareholders | ||
Basic (in dollars per share) | $ 0.21 | $ 0.19 |
Diluted (in dollars per share) | $ 0.21 | $ 0.18 |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 137,101,535 | 136,525,557 |
Diluted (in shares) | 138,152,378 | 137,499,963 |
Owned properties | ||
Revenues: | ||
Owned properties and on-campus participating properties revenue | $ 224,419 | $ 205,532 |
Operating expenses: | ||
Operating expenses | 92,169 | 88,060 |
On-campus participating properties | ||
Revenues: | ||
Owned properties and on-campus participating properties revenue | 11,448 | 10,443 |
Operating expenses: | ||
Operating expenses | 3,957 | 3,425 |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | ||
Revenues: | ||
Total revenues | 242,131 | 220,409 |
Operating expenses: | ||
Third-party development and management services | 4,186 | 4,198 |
General and administrative | 7,315 | 6,699 |
Depreciation and amortization | 68,755 | 64,779 |
Ground/facility leases | 3,549 | 2,842 |
Provision for real estate impairment | 3,201 | 0 |
Total operating expenses | 183,132 | 170,003 |
Operating income | 58,999 | 50,406 |
Nonoperating income (expenses): | ||
Interest income | 926 | 1,223 |
Interest expense | (27,061) | (23,684) |
Amortization of deferred financing costs | (1,132) | (1,414) |
Total nonoperating expenses | (27,267) | (23,875) |
Income before income taxes | 31,732 | 26,531 |
Income tax provision | (364) | (281) |
Net income | 31,368 | 26,250 |
Net income attributable to ACC, Inc. and Subsidiaries common stockholders | 29,800 | 26,136 |
Series A preferred unit distributions | (31) | (31) |
Net income attributable to common unitholders | 29,769 | 26,105 |
Other comprehensive (loss) income | ||
Change in fair value of interest rate swaps and other | (5,794) | 465 |
Comprehensive income | $ 23,975 | $ 26,570 |
Net income per share attributable to ACC, Inc. and Subsidiaries common shareholders | ||
Basic (in dollars per share) | $ 0.21 | $ 0.19 |
Diluted (in dollars per share) | $ 0.21 | $ 0.18 |
Weighted-average common units outstanding | ||
Basic (in units) | 137,696,323 | 137,482,493 |
Diluted (in units) | 138,747,166 | 138,456,899 |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | Owned properties | ||
Revenues: | ||
Owned properties and on-campus participating properties revenue | $ 224,419 | $ 205,532 |
Operating expenses: | ||
Operating expenses | 92,169 | 88,060 |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | On-campus participating properties | ||
Revenues: | ||
Owned properties and on-campus participating properties revenue | 11,448 | 10,443 |
Operating expenses: | ||
Operating expenses | 3,957 | 3,425 |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | Partially owned properties | ||
Nonoperating income (expenses): | ||
Net income attributable to noncontrolling interests | (1,568) | (114) |
Third-party development services | ||
Revenues: | ||
Contract with customer, revenue | 3,171 | 846 |
Third-party development services | AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | ||
Revenues: | ||
Contract with customer, revenue | 3,171 | 846 |
Third-party management services | ||
Revenues: | ||
Contract with customer, revenue | 2,311 | 2,731 |
Third-party management services | AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | ||
Revenues: | ||
Contract with customer, revenue | 2,311 | 2,731 |
Resident services | ||
Revenues: | ||
Contract with customer, revenue | 782 | 857 |
Resident services | AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | ||
Revenues: | ||
Contract with customer, revenue | $ 782 | $ 857 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common Shares | Additional Paid in Capital | Common Shares Held in Rabbi Trust | Accumulated Earnings and Dividends | Accumulated Other Comprehensive Loss | Noncontrolling Interests – Partially Owned PropertiesPartially owned properties | AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P.Accumulated Other Comprehensive Loss | AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P.Noncontrolling Interests – Partially Owned PropertiesPartially owned properties | General PartnerAMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | Limited PartnerAMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. |
Equity, Beginning (in shares) at Dec. 31, 2017 | 136,362,728 | 63,778 | ||||||||||
Equity, Beginning at Dec. 31, 2017 | $ 3,498,958 | $ 1,364 | $ 4,326,910 | $ (2,944) | $ (837,644) | $ (2,701) | $ 13,973 | |||||
Capital, Beginning (in units) at Dec. 31, 2017 | 12,222 | 136,414,284 | ||||||||||
Capital, Beginning at Dec. 31, 2017 | $ 3,498,958 | $ (2,701) | $ 13,973 | $ 67 | $ 3,487,619 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Adjustments to reflect redeemable noncontrolling interests at fair value | 4,526 | 4,526 | 4,526 | $ 4,526 | ||||||||
Amortization of restricted stock awards and vesting of restricted stock units (in shares) | 3,040 | 3,040 | ||||||||||
Amortization of restricted stock awards and vesting of restricted stock units | 3,443 | 3,443 | 3,443 | $ 3,443 | ||||||||
Vesting of restricted stock awards (in shares) | 165,263 | 165,263 | ||||||||||
Vesting of restricted stock awards | (2,757) | $ 1 | (2,758) | (2,757) | $ (2,757) | |||||||
Distributions to common and restricted unit holders and other | 60,564 | 5 | $ 60,559 | |||||||||
Distributions to common and restricted stockholders/unit holders and other | (60,564) | (60,564) | ||||||||||
Contributions by noncontrolling interests - partially owned properties | 9,515 | 9,515 | 9,515 | 9,515 | ||||||||
Distributions to noncontrolling interests - partially owned properties | (47) | (47) | (47) | (47) | ||||||||
Conversion of common and preferred operating partnership units to common stock (in shares) | 68,448 | 68,448 | ||||||||||
Conversion of common and preferred operating partnership units to common stock | 478 | $ 1 | 477 | 478 | $ 478 | |||||||
Net proceeds from sale of common stock | 465 | 465 | 465 | 465 | ||||||||
Deposits to deferred compensation plan, net of withdrawals (in shares) | 1,160 | (1,160) | ||||||||||
Deposits to deferred compensation plan, net of withdrawals | (127) | $ 127 | ||||||||||
Net income | 26,040 | 25,927 | 113 | 26,040 | 113 | $ 2 | $ 25,925 | |||||
Equity, Ending (in shares) at Mar. 31, 2018 | 136,600,639 | 62,618 | ||||||||||
Equity, Ending at Mar. 31, 2018 | 3,480,057 | $ 1,366 | 4,332,471 | $ (2,817) | (872,281) | (2,236) | 23,554 | |||||
Capital, Ending (in units) at Mar. 31, 2018 | 12,222 | 136,651,035 | ||||||||||
Capital, Ending at Mar. 31, 2018 | 3,480,057 | (2,236) | 23,554 | $ 64 | $ 3,458,675 | |||||||
Equity, Beginning (in shares) at Dec. 31, 2017 | 136,362,728 | 63,778 | ||||||||||
Equity, Beginning at Dec. 31, 2017 | 3,498,958 | $ 1,364 | 4,326,910 | $ (2,944) | (837,644) | (2,701) | 13,973 | |||||
Capital, Beginning (in units) at Dec. 31, 2017 | 12,222 | 136,414,284 | ||||||||||
Capital, Beginning at Dec. 31, 2017 | 3,498,958 | (2,701) | 13,973 | $ 67 | $ 3,487,619 | |||||||
Equity, Ending (in shares) at Dec. 31, 2018 | 136,967,286 | 69,603 | ||||||||||
Equity, Ending at Dec. 31, 2018 | 3,546,801 | $ 1,370 | 4,458,240 | $ (3,092) | (971,070) | (4,397) | 65,750 | |||||
Capital, Ending (in units) at Dec. 31, 2018 | 12,222 | 137,024,667 | ||||||||||
Capital, Ending at Dec. 31, 2018 | 3,546,801 | (4,397) | 65,750 | $ 55 | $ 3,485,393 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Adjustments to reflect redeemable noncontrolling interests at fair value | (2,547) | (2,547) | (2,547) | $ (2,547) | ||||||||
Amortization of restricted stock awards and vesting of restricted stock units (in shares) | 0 | |||||||||||
Amortization of restricted stock awards and vesting of restricted stock units | 3,765 | 3,765 | 3,765 | $ 3,765 | ||||||||
Vesting of restricted stock awards (in shares) | 180,961 | 180,961 | ||||||||||
Vesting of restricted stock awards | (3,831) | (3,831) | (3,831) | $ (3,831) | ||||||||
Distributions to common and restricted unit holders and other | 63,611 | 6 | $ 63,605 | |||||||||
Distributions to common and restricted stockholders/unit holders and other | (63,611) | (63,611) | ||||||||||
Contributions by noncontrolling interests - partially owned properties | 625 | 625 | 625 | 625 | ||||||||
Distributions to noncontrolling interests - partially owned properties | (3,661) | (3,661) | (3,661) | (3,661) | ||||||||
Conversion of common and preferred operating partnership units to common stock (in shares) | 42,271 | 42,271 | ||||||||||
Conversion of common and preferred operating partnership units to common stock | 251 | 251 | 251 | $ 251 | ||||||||
Net proceeds from sale of common stock | (5,794) | (5,794) | (5,794) | (5,794) | ||||||||
Deposits to deferred compensation plan, net of withdrawals (in shares) | (1,829) | 1,829 | ||||||||||
Deposits to deferred compensation plan, net of withdrawals | 70 | $ (70) | ||||||||||
Net income | 31,109 | 29,640 | 1,469 | 31,109 | 1,469 | $ 3 | $ 29,637 | |||||
Equity, Ending (in shares) at Mar. 31, 2019 | 137,188,689 | 71,432 | ||||||||||
Equity, Ending at Mar. 31, 2019 | $ 3,503,107 | $ 1,370 | $ 4,455,948 | $ (3,162) | $ (1,005,041) | $ (10,191) | $ 64,183 | |||||
Capital, Ending (in units) at Mar. 31, 2019 | 12,222 | 137,247,899 | ||||||||||
Capital, Ending at Mar. 31, 2019 | $ 3,503,107 | $ (10,191) | $ 64,183 | $ 52 | $ 3,449,063 |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Distributions declared per common share (in dollars per share) | $ 0.46 | $ 0.44 |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | ||
Distributions declared per common share (in dollars per share) | $ 0.46 | $ 0.44 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities | ||
Net income | $ 31,368 | $ 26,250 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for real estate impairment | 3,201 | 0 |
Depreciation and amortization | 68,755 | 64,779 |
Amortization of deferred financing costs and debt premiums/discounts | (19) | (16) |
Share-based compensation | 3,765 | 3,443 |
Income tax provision | 364 | 281 |
Amortization of interest rate swap terminations and other | 102 | 102 |
Student contracts receivable | ||
Student contracts receivable | (5,491) | (556) |
Other assets | (7,723) | 2,100 |
Accounts payable and accrued expenses | (30,595) | (1,088) |
Other liabilities | 16,885 | 12,845 |
Net cash provided by operating activities | 80,612 | 108,140 |
Investing activities | ||
Other investing activities | (1,123) | (1,314) |
Net cash used in investing activities | (116,872) | (136,710) |
Financing activities | ||
Pay-off of mortgage and construction loans | 0 | (10,375) |
Proceeds from revolving credit facility | 180,600 | 234,900 |
Paydowns of revolving credit facility | (110,500) | (144,500) |
Proceeds from construction loans | 14,174 | 32,966 |
Scheduled principal payments on debt | (2,040) | (2,248) |
Debt issuance and assumption costs | (1,853) | 0 |
Contribution by noncontrolling interests | 625 | 854 |
Taxes paid on net-share settlements | (3,831) | (2,757) |
Distributions paid to common and restricted stockholders | (63,611) | (60,564) |
Distributions paid to noncontrolling interests | (3,966) | (491) |
Net cash provided by financing activities | 9,598 | 47,785 |
Net change in cash, cash equivalents, and restricted cash | (26,662) | 19,215 |
Cash, cash equivalents, and restricted cash at beginning of period | 106,517 | 64,772 |
Cash, cash equivalents, and restricted cash at end of period | 79,855 | 83,987 |
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets | ||
Total cash, cash equivalents, and restricted cash at end of period | 106,517 | 64,772 |
Supplemental disclosure of non-cash investing and financing activities | ||
Conversion of common and preferred operating partnership units to common stock | 251 | 478 |
Non-cash contribution from noncontrolling interest | 0 | 8,729 |
Change in accrued construction in progress | (13,915) | 12,118 |
Change in fair value of derivative instruments, net | (5,896) | 363 |
Adjustment to reflect redeemable noncontrolling interests at fair value | (2,547) | 4,526 |
Initial recognition of operating lease right of use assets | 280,687 | |
Initial recognition of operating lease liabilities | 279,982 | |
Supplemental disclosure of cash flow information | ||
Interest paid | 20,912 | 17,911 |
Owned properties | ||
Investing activities | ||
Capital expenditures | (10,751) | (11,338) |
Owned properties under development | ||
Investing activities | ||
Capital expenditures | (104,768) | (122,912) |
On-campus participating properties | ||
Investing activities | ||
Capital expenditures | (230) | (1,146) |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | ||
Operating activities | ||
Net income | 31,368 | 26,250 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for real estate impairment | 3,201 | 0 |
Depreciation and amortization | 68,755 | 64,779 |
Amortization of deferred financing costs and debt premiums/discounts | (19) | (16) |
Share-based compensation | 3,765 | 3,443 |
Income tax provision | 364 | 281 |
Amortization of interest rate swap terminations and other | 102 | 102 |
Student contracts receivable | ||
Student contracts receivable | (5,491) | (556) |
Other assets | (7,723) | 2,100 |
Accounts payable and accrued expenses | (30,595) | (1,088) |
Other liabilities | 16,885 | 12,845 |
Net cash provided by operating activities | 80,612 | 108,140 |
Investing activities | ||
Other investing activities | (1,123) | (1,314) |
Net cash used in investing activities | (116,872) | (136,710) |
Financing activities | ||
Pay-off of mortgage and construction loans | 0 | (10,375) |
Proceeds from revolving credit facility | 180,600 | 234,900 |
Paydowns of revolving credit facility | (110,500) | (144,500) |
Proceeds from construction loans | 14,174 | 32,966 |
Scheduled principal payments on debt | (2,040) | (2,248) |
Debt issuance and assumption costs | (1,853) | 0 |
Contribution by noncontrolling interests | 625 | 854 |
Taxes paid on net-share settlements | (3,831) | (2,757) |
Net cash provided by financing activities | 9,598 | 47,785 |
Net change in cash, cash equivalents, and restricted cash | (26,662) | 19,215 |
Cash, cash equivalents, and restricted cash at beginning of period | 106,517 | 64,772 |
Cash, cash equivalents, and restricted cash at end of period | 79,855 | 83,987 |
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets | ||
Total cash, cash equivalents, and restricted cash at end of period | 106,517 | 64,772 |
Supplemental disclosure of non-cash investing and financing activities | ||
Conversion of common and preferred operating partnership units to common stock | 251 | 478 |
Non-cash contribution from noncontrolling interest | 0 | 8,729 |
Change in accrued construction in progress | (13,915) | 12,118 |
Change in fair value of derivative instruments, net | (5,896) | 363 |
Adjustment to reflect redeemable noncontrolling interests at fair value | (2,547) | 4,526 |
Initial recognition of operating lease right of use assets | 280,687 | |
Initial recognition of operating lease liabilities | 279,982 | |
Supplemental disclosure of cash flow information | ||
Interest paid | 20,912 | 17,911 |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | Common and preferred units | ||
Financing activities | ||
Distributions | (63,343) | (60,502) |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | Unvested restricted awards | ||
Financing activities | ||
Distributions | (573) | (506) |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | Partially owned properties | ||
Financing activities | ||
Distributions | (3,661) | (47) |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | Owned properties | ||
Investing activities | ||
Capital expenditures | (10,751) | (11,338) |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | Owned properties under development | ||
Investing activities | ||
Capital expenditures | (104,768) | (122,912) |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | On-campus participating properties | ||
Investing activities | ||
Capital expenditures | $ (230) | $ (1,146) |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business American Campus Communities, Inc. (“ACC”) is a real estate investment trust (“REIT”) that commenced operations effective with the completion of an initial public offering (“IPO”) on August 17, 2004. Through ACC’s controlling interest in American Campus Communities Operating Partnership LP (“ACCOP”), ACC is one of the largest owners, managers and developers of high quality student housing properties in the United States in terms of beds owned and under management. ACC is a fully integrated, self-managed and self-administered equity REIT with expertise in the acquisition, design, financing, development, construction management, leasing and management of student housing properties. ACC’s common stock is publicly traded on the New York Stock Exchange (“NYSE”) under the ticker symbol “ACC.” The general partner of ACCOP is American Campus Communities Holdings, LLC (“ACC Holdings”), an entity that is wholly-owned by ACC. As of March 31, 2019 , ACC Holdings held an ownership interest in ACCOP of less than 1% . The limited partners of ACCOP are ACC and other limited partners consisting of current and former members of management and nonaffiliated third parties. As of March 31, 2019 , ACC owned an approximate 99.5% limited partnership interest in ACCOP. As the sole member of the general partner of ACCOP, ACC has exclusive control of ACCOP’s day-to-day management. Management operates ACC and ACCOP as one business. The management of ACC consists of the same members as the management of ACCOP. ACC consolidates ACCOP for financial reporting purposes, and ACC does not have significant assets other than its investment in ACCOP. Therefore, the assets and liabilities of ACC and ACCOP are the same on their respective financial statements. References to the “Company” means collectively ACC, ACCOP and those entities/subsidiaries owned or controlled by ACC and/or ACCOP. References to the “Operating Partnership” mean collectively ACCOP and those entities/subsidiaries owned or controlled by ACCOP. Unless otherwise indicated, the accompanying Notes to the Consolidated Financial Statements apply to both the Company and the Operating Partnership. As of March 31, 2019 , the Company’s property portfolio contained 171 properties with approximately 109,400 beds. The Company’s property portfolio consisted of 131 owned off-campus student housing properties that are in close proximity to colleges and universities, 34 American Campus Equity (“ACE ® ”) properties operated under ground/facility leases, and six on-campus participating properties operated under ground/facility leases with the related university systems. Of the 171 properties, eight were under development as of March 31, 2019 , and when completed will consist of a total of approximately 9,000 beds. The Company’s communities contain modern housing units and are supported by a resident assistant system and other student-oriented programming, with many offering resort-style amenities. Through one of ACC’s taxable REIT subsidiaries (“TRSs”), the Company also provides construction management and development services, primarily for student housing properties owned by colleges and universities, charitable foundations, and others. As of March 31, 2019 , also through one of ACC’s TRSs, the Company provided third-party management and leasing services for 34 properties that represented approximately 24,300 beds. Third-party management and leasing services are typically provided pursuant to management contracts that have initial terms that range from one to five years . As of March 31, 2019 , the Company’s total owned and third-party managed portfolio included 205 properties with approximately 133,700 beds. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and use of Estimates The accompanying consolidated financial statements, presented in U.S. dollars, are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the date of the financial statements, and revenue and expenses during the reporting periods. The Company’s actual results could differ from those estimates and assumptions. All material intercompany transactions among consolidated entities have been eliminated. All dollar amounts in the tables herein, except share, per share, unit and per unit amounts, are stated in thousands unless otherwise indicated. Principles of Consolidation The Company’s consolidated financial statements include its accounts and the accounts of other subsidiaries and joint ventures (including partnerships and limited liability companies) over which it has control. Investments acquired or created are evaluated based on the accounting guidance relating to variable interest entities (“VIEs”), which requires the consolidation of VIEs in which the Company is considered to be the primary beneficiary. If the investment is determined not to be a VIE, then the investment is evaluated for consolidation using the voting interest model. Recently Issued Accounting Pronouncements The Company does not expect the following accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”) to have a material effect on its consolidated financial statements: Accounting Standards Update Effective Date ASU 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract” January 1, 2020 ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement” January 1, 2020 ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” January 1, 2020 Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02 (“ASU 2016-12”), “Leases (Topic 842): Amendments to the FASB Accounting Standards Codification.” ASU 2016-02 outlines principles for the recognition, measurement, presentation and disclosure of leases. Subsequent to the issuance of ASU 2016-02, the FASB issued additional ASUs clarifying aspects of the new lease accounting standard, which are effective upon adoption of ASU 2016-02. These lease-related ASUs are collectively referred to as the “New Leases Standard.” The Company adopted the New Leases Standard on January 1, 2019, utilizing the modified retrospective transition approach. Under this approach, the Company elected to apply the new standard to leases that were in place as of January 1, 2019. Results for reporting periods beginning January 1, 2019 are presented under the New Leases Standard. Upon adoption, the Company did not record an adjustment to beginning retained earnings. In addition, the Company adopted the following additional practical expedients available for implementation: • An entity need not reassess whether any existing or expired contracts are or contain leases; • An entity need not reassess lease classification for any existing or expired leases; and • An entity need not reassess initial direct costs for any existing leases. As Lessee: • Under the New Leases Standard, lessees classify leases as either operating or finance leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification determines whether lease expense is recognized on a straight-line basis over the term of the lease (operating lease) or under the effective interest method (finance lease). In addition, the New Leases Standard requires lessees to recognize right-of-use assets and related lease liabilities for leases with a term greater than 12 months regardless of their lease classification. • Upon adoption of the New Leases Standard on January 1, 2019, the Company was a lessee under 28 ground leases and two corporate office headquarters leases for which it recorded $278.2 million in right of use assets (“ROU Assets”), which are included in other assets on the accompanying consolidated balance sheet, and $277.5 million of operating lease liabilities. • Because the Company’s existing leases under which it is a lessee will continue to be classified as operating leases, the timing and pattern of lease expense recognition (straight-line basis) will remain unchanged. However, for any leases entered into or modified after January 1, 2019 the leases will need to be evaluated under the New Leases Standard and may be classified as finance leases depending on the terms of the transactions. As Lessor: • Under the New Leases Standard, the accounting for lessors remained largely unchanged from current GAAP; however, ASU 2016-02 required that lessors expense, on an as-incurred basis, certain initial direct costs that are not incremental in negotiating a lease. Under existing standards, these costs are capitalizable and therefore the New Leases Standard will result in certain of these costs being expensed as incurred after adoption. For the Company, these costs include internal leasing payroll costs incurred for owned and presale development projects, as well as certain legal expenses incurred when negotiating commercial leases. • The New Leases Standard also required lessors to evaluate collectability of all operating lease payments in a contract at lease commencement and thereafter. If the operating lease payments are deemed not probable of collection, adjustments are recognized as a reduction to lease income. This resulted in the reclassification of the provision for uncollectible accounts from operating expenses to revenue. This adjustment is reflected on a prospective basis in the accompanying consolidated statements of comprehensive income, starting in the three months ended March 31, 2019. The adjustments to lease income for owned properties and on-campus participating properties were a $1.1 million reduction to income and a $0.8 million addition to income, respectively, for the three months ended March 31, 2019. • The New Leases Standard provides a practical expedient that allows lessors to not separate certain lease and non-lease components if certain criteria are met. The Company assessed the criteria and determined that the timing and pattern of transfer for common area maintenance and the related rental revenue is the same. Therefore, the Company elected the practical expedient which resulted in no change to how revenue is currently recorded. Other In addition, on January 1, 2019 , the Company adopted the following accounting pronouncements which did not have a material effect on the Company’s consolidated financial statements: • ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” • ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” Interim Financial Statements The accompanying interim financial statements are unaudited, but have been prepared in accordance with GAAP for interim financial information and in conjunction with the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting solely of normal recurring matters) necessary for a fair presentation of the financial statements of the Company for these interim periods have been included. Because of the seasonal nature of the Company’s operations, the results of operations and cash flows for any interim period are not necessarily indicative of results for other interim periods or for the full year. These financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . Investments in Real Estate Investments in real estate are recorded at historical cost. Major improvements that extend the life of an asset are capitalized and depreciated over the remaining useful life of the asset. The cost of ordinary repairs and maintenance are charged to expense when incurred. Depreciation and amortization are recorded on a straight-line basis over the estimated useful lives of the assets as follows: Buildings and improvements 7-40 years Leasehold interest - on-campus participating properties 25-34 years (shorter of useful life or respective lease term) Furniture, fixtures and equipment 3-7 years Project costs directly associated with the development and construction of an owned real estate project, which include interest, property taxes, and amortization of deferred financing costs, are capitalized as construction in progress. Upon completion of the project, costs are transferred into the applicable asset category and depreciation commences. Interest totaling approximately $2.7 million and $3.0 million was capitalized during the three months ended March 31, 2019 and 2018 . Management assesses whether there has been an impairment in the value of the Company’s investments in real estate whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment is recognized when estimated expected future undiscounted cash flows are less than the carrying value of the property, or when a property meets the criteria to be classified as held for sale, at which time an impairment charge is recognized for any excess of the carrying value of the property over the expected net proceeds from the disposal. The estimation of expected future net cash flows is inherently uncertain and relies on assumptions regarding current and future economics and market conditions. If such conditions change, then an adjustment to the carrying value of the Company’s long-lived assets could occur in the future period in which the conditions change. To the extent that a property is impaired, the excess of the carrying amount of the property over its estimated fair value is charged to earnings. In the case of any impairment, the valuation would be based on Level 3 inputs. There were no impairments of the carrying values of the Company's investments in real estate as of March 31, 2019 , other than a $3.2 million impairment charge recorded on March 31, 2019 concurrent with the classification of one owned property as held for sale. Long-Lived Assets–Held for Sale Long-lived assets to be disposed of are classified as held for sale in the period in which all of the following criteria are met: a. Management, having the authority to approve the action, commits to a plan to sell the asset. b. The asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets. c. An active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated. d. The sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one year. e. The asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value. f. Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Concurrent with this classification, the asset is recorded at the lower of cost or fair value less estimated selling costs, and depreciation ceases. The Company had one property classified as held for sale as of March 31, 2019 . Restricted Cash Restricted cash consists of funds held in trust and invested in low risk investments, generally consisting of government backed securities, as permitted by the indentures of trusts, which were established in connection with three bond issues for the Company’s on-campus participating properties. Additionally, restricted cash includes escrow accounts held by lenders and resident security deposits, as required by law in certain states. Restricted cash also consists of escrow deposits made in connection with potential property acquisitions and development opportunities. These escrow deposits are invested in interest-bearing accounts at federally-insured banks. Realized and unrealized gains and losses are not material for the periods presented. Consolidated VIEs The Company has investments in various entities that qualify as VIEs for accounting purposes and for which the Company is the primary beneficiary and therefore includes the entities in its consolidated financial statements. These VIEs include the Operating Partnership, six joint ventures that own a total of 15 operating properties, two properties subject to presale arrangements, and six properties owned under the on-campus participating property structure. The VIE assets and liabilities consolidated within the Company's assets and liabilities are disclosed at the bottom of the Consolidated Balance Sheets. Earnings per Share – Company Basic earnings per share is computed using net income attributable to common stockholders and the weighted average number of shares of the Company’s common stock outstanding during the period. Diluted earnings per share reflects common shares issuable from the assumed conversion of American Campus Communities Operating Partnership Units (“OP Units”) and common share awards granted. Only those items having a dilutive impact on basic earnings per share are included in diluted earnings per share. The following potentially dilutive securities were outstanding for the three months ended March 31, 2019 and 2018 , but were not included in the computation of diluted earnings per share because the effects of their inclusion would be anti-dilutive. Three Months Ended 2019 2018 Common OP Units (Note 7) 594,788 956,936 Preferred OP Units (Note 7) 64,361 77,513 Total potentially dilutive securities 659,149 1,034,449 The following is a summary of the elements used in calculating basic and diluted earnings per share: Three Months Ended 2019 2018 Numerator – basic and diluted earnings per share: Net income $ 31,368 $ 26,250 Net income attributable to noncontrolling interests (1,728 ) (323 ) Net income attributable to common stockholders 29,640 25,927 Amount allocated to participating securities (573 ) (506 ) Net income attributable to common stockholders $ 29,067 $ 25,421 Denominator: Basic weighted average common shares outstanding 137,101,535 136,525,557 Unvested restricted stock awards (Note 8) 1,050,843 974,406 Diluted weighted average common shares outstanding 138,152,378 137,499,963 Earnings per share: Net income attributable to common stockholders - basic $ 0.21 $ 0.19 Net income attributable to common stockholders - diluted $ 0.21 $ 0.18 Earnings per Unit – Operating Partnership Basic earnings per OP Unit is computed using net income attributable to common unitholders and the weighted average number of common units outstanding during the period. Diluted earnings per OP Unit reflects the potential dilution that could occur if securities or other contracts to issue OP Units were exercised or converted into OP Units or resulted in the issuance of OP Units and then shared in the earnings of the Operating Partnership. The following is a summary of the elements used in calculating basic and diluted earnings per unit: Three Months Ended 2019 2018 Numerator – basic and diluted earnings per unit: Net income $ 31,368 $ 26,250 Net loss attributable to noncontrolling interests – partially owned properties (1,568 ) (114 ) Series A preferred unit distributions (31 ) (31 ) Amount allocated to participating securities (573 ) (506 ) Net income attributable to common unitholders $ 29,196 $ 25,599 Denominator: Basic weighted average common units outstanding 137,696,323 137,482,493 Unvested restricted stock awards (Note 8) 1,050,843 974,406 Diluted weighted average common units outstanding 138,747,166 138,456,899 Earnings per unit: Net income attributable to common unitholders - basic $ 0.21 $ 0.19 Net income attributable to common unitholders - diluted $ 0.21 $ 0.18 |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Presale Development Projects: During the three months ended March 31, 2018, the Company entered into two presale agreements to purchase two properties under development that when completed will contain 783 beds. The Company is obligated to purchase the properties for approximately $107.3 million , which includes the contractual purchase price and the cost of elected upgrades, as long as the developer meets certain construction completion deadlines and other closing conditions. As part of the presale agreement, the Company provided $15.6 million of mezzanine financing to one of the projects. |
Investments in Owned Properties
Investments in Owned Properties | 3 Months Ended |
Mar. 31, 2019 | |
Owned properties | |
Real Estate Properties [Line Items] | |
Investments in Owned Properties | Investments in Owned Properties Owned properties, both wholly-owned and those owned through investments in VIEs, consisted of the following: March 31, 2019 December 31, 2018 Land (1) $ 651,573 $ 653,522 Buildings and improvements 6,471,752 6,486,106 Furniture, fixtures and equipment 371,556 371,429 Construction in progress 397,811 302,902 7,892,692 7,813,959 Less accumulated depreciation (1,286,673 ) (1,230,562 ) Owned properties, net $ 6,606,019 (2) $ 6,583,397 (1) The land balance above includes undeveloped land parcels with book values of approximately $54.5 million as of both March 31, 2019 and December 31, 2018 . It also includes land totaling approximately $10.3 million as of both March 31, 2019 and December 31, 2018 related to properties under development. (2) Excludes the net book value of one property classified as held for sale in the accompanying consolidated balance sheet at March 31, 2019 . |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt A summary of the Company’s outstanding consolidated indebtedness, including unamortized debt premiums and discounts, is as follows: March 31, 2019 December 31, 2018 Debt secured by owned properties: Mortgage loans payable: Unpaid principal balance $ 725,606 $ 727,163 Unamortized deferred financing costs (1,961 ) (1,757 ) Unamortized debt premiums 10,333 11,579 733,978 736,985 Construction loans payable (1) 36,382 22,207 Unamortized deferred financing costs (205 ) (480 ) 770,155 758,712 Debt secured by on-campus participating properties: Mortgage loans payable (2) 67,384 67,867 Bonds payable (2) 27,030 27,030 Unamortized deferred financing costs (499 ) (525 ) 93,915 94,372 Total secured mortgage, construction and bond debt 864,070 853,084 Unsecured notes, net of unamortized OID and deferred financing costs (3) 1,589,096 1,588,446 Unsecured term loans, net of unamortized deferred financing costs (4) 198,857 198,769 Unsecured revolving credit facility 457,400 387,300 Total debt, net $ 3,109,423 $ 3,027,599 (1) Construction loans payable relate to construction loans partially financing the development of two presale development projects. These properties are owned by entities determined to be VIEs for which the Company is the primary beneficiary. The creditors of these construction loans do not have recourse to the assets of the Company. (2) The creditors of mortgage loans payable and bonds payable related to on-campus participating properties do not have recourse to the assets of the Company. (3) Includes net unamortized original issue discount (“OID”) of $1.5 million and $1.6 million at March 31, 2019 and December 31, 2018 , respectively, and net unamortized deferred financing costs of $9.4 million and $10.0 million at March 31, 2019 and December 31, 2018 , respectively. (4) Includes net unamortized deferred financing costs of $1.1 million and $1.2 million at March 31, 2019 and December 31, 2018 , respectively. Mortgage and Construction Loans Payable In January 2019, the Company refinanced $70.0 million of variable rate debt on one wholly-owned property, extending the maturity to January 2024. This transaction was accounted for as a debt extinguishment. The Company entered into an interest rate swap contract to hedge the variable rate cash flows associated with interest payments on this LIBOR-based mortgage loan, resulting in a fixed rate of 4.00% . Refer to Note 9 for information related to derivatives. In May 2017, the lender of the non-recourse mortgage loan secured by Blanton Common, a property located near Valdosta State University which was inherited as part of the GMH student housing transaction in 2008, sent a formal notice of default and initiated foreclosure proceedings. The property generated insufficient cash flow to cover the debt service on the mortgage, which had a balance of $27.4 million at default and a contractual maturity date of August 2017. In May 2017, the lender began receiving the net operating cash flows of the property each month in lieu of scheduled monthly mortgage payments. In June 2017, the Company recorded an impairment charge for this property of $15.3 million . In August 2017, the property transferred to receivership and a third-party manager began managing the property on behalf of the lender. As of March 31, 2019 , the Company was cooperating with the lender to allow for a consensual foreclosure process upon which the property will be surrendered to the lender in satisfaction of the mortgage loan. Unsecured Notes The Company has issued the following senior unsecured notes: Date Issued Amount % of Par Value Coupon Yield Original Issue Discount Term (Years) April 2013 $ 400,000 99.659 3.750 % 3.791 % $ 1,364 10 June 2014 400,000 99.861 4.125 % 4.269 % (1) 556 10 September 2015 400,000 99.811 3.350 % 3.391 % 756 5 October 2017 400,000 99.912 3.625 % 3.635 % 352 10 $ 1,600,000 $ 3,028 (1) The yield includes the effect of the amortization of interest rate swap terminations (see Note 9 ). The notes are fully and unconditionally guaranteed by the Company. Interest on the notes is payable semi-annually. The terms of the unsecured notes include certain financial covenants that require the Operating Partnership to limit the amount of total debt and secured debt as a percentage of total asset value, as defined. In addition, the Operating Partnership must maintain a minimum ratio of unencumbered asset value to unsecured debt, as well as a minimum interest coverage level. As of March 31, 2019 , the Company was in compliance with all such covenants. Unsecured Revolving Credit Facility In February 2019, the Company exercised the option under the existing credit agreement to increase the capacity of the unsecured revolving credit facility from $700 million to $1 billion . It may be expanded by up to an additional $200 million upon the satisfaction of certain conditions. The maturity date of the revolving credit facility is March 2022. The unsecured revolving credit facility bears interest at a variable rate, at the Company’s option, based upon a base rate of one-, two-, three- or six-month LIBOR, plus, in each case, a spread based upon the Company’s investment grade rating from either Moody’s Investor Services, Inc. or Standard & Poor’s Rating Group. Additionally, the Company is required to pay a facility fee of 0.20% per annum on the $1 billion revolving credit facility. As of March 31, 2019 , the revolving credit facility bore interest at a weighted average annual rate of 3.69% ( 2.49% + 1.00% spread + 0.20% facility fee), and availability under the revolving credit facility totaled $542.6 million . The terms of the unsecured credit facility include certain restrictions and covenants, which limit, among other items, the incurrence of additional indebtedness and liens. The facility contains customary affirmative and negative covenants and also contains financial covenants that, among other things, require the Company to maintain certain maximum leverage ratios and minimum ratios of “EBITDA” (earnings before interest, taxes, depreciation and amortization) to fixed charges. The financial covenants also include a minimum asset value requirement, a maximum secured debt ratio, and a minimum unsecured debt service coverage ratio. As of March 31, 2019 , the Company was in compliance with all such covenants. Unsecured Term Loans In 2017, the Company entered into an Unsecured Term Loan Credit Agreement (the “Term Loan II Facility”) totaling $200 million . The maturity date of the Term Loan II Facility is June 2022. The agreement has an accordion feature that allows the Company to expand the amount by up to an additional $100 million , subject to the satisfaction of certain conditions. The weighted average annual rate on the Term Loan II Facility was 3.58% ( 2.48% + 1.10% spread) at March 31, 2019 . The terms of the term loan facilities described above include certain restrictions and covenants consistent with those of the unsecured revolving credit facility discussed above. As of March 31, 2019 , the Company was in compliance with all such covenants. |
Stockholders' Equity _ Partners
Stockholders' Equity / Partners' Capital | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity / Partners' Capital | Stockholders’ Equity / Partners’ Capital Stockholders’ Equity - Company In May 2018, the Company renewed its at-the-market share offering program (the “ATM Equity Program”) through which the Company may issue and sell, from time to time, shares of common stock having an aggregate offering price of up to $500 million . The shares that may be sold under this program include shares of common stock of the Company with an aggregate offering price of approximately $233.0 million that were not sold under the Company's previous ATM equity program that expired in May 2018. Actual sales under the program will depend on a variety of factors including, but not limited to, market conditions, the trading price of the Company’s common stock and determinations of the appropriate sources of funding for the Company. There was no activity under the Company’s ATM Equity Program during the three months ended March 31, 2019 and 2018 . As of March 31, 2019 , the Company had approximately $500.0 million available for issuance under its ATM Equity Program. In 2015, the Company established a Non-Qualified Deferred Compensation Plan (“Deferred Compensation Plan”) maintained for the benefit of certain employees and members of the Company’s Board of Directors, in which vested share awards (see Note 8 ), salary and other cash amounts earned may be deposited. Deferred Compensation Plan assets are held in a rabbi trust, which is subject to the claims of the Company’s creditors in the event of bankruptcy or insolvency. The shares held in the Deferred Compensation Plan are classified within stockholders’ equity in a manner similar to the manner in which treasury stock is classified. Subsequent changes in the fair value of the shares are not recognized. During the three months ended March 31, 2019 , 7,332 and 5,503 shares of vested stock were deposited into and withdrawn from the Deferred Compensation Plan, respectively. As of March 31, 2019 , 71,432 shares of ACC’s common stock were held in the Deferred Compensation Plan. |
Noncontrolling Interests
Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Interests in Consolidated Real Estate Joint Ventures and Presale Arrangements Noncontrolling interests - partially owned properties: As of March 31, 2019 , the Operating Partnership consolidates four joint ventures that own and operate ten owned off-campus properties. Additionally, the Company has entered into two presale agreements to purchase two in-process development properties. The portion of net assets attributable to the third-party partners in these arrangements is classified as “noncontrolling interests - partially owned properties” within equity and capital on the accompanying consolidated balance sheets of ACC and the Operating Partnership, respectively. Redeemable noncontrolling interests (ACC) / redeemable limited partners (Operating Partnership) : In the third quarter of 2017, the Company entered into two joint ventures (the “Core Joint Ventures”). The Company is consolidating these joint ventures and the noncontrolling interest holder in each of these consolidated joint ventures has the option to redeem its noncontrolling interest in the entities through the exercise of put options. The options will be exercisable in the third and fourth quarter of 2019, and the redemption price is based on the fair value of the properties at the time of option exercise. As the exercise of the options is outside of the Company’s control, the portion of net assets attributable to the third-party partner in each of the Core Joint Ventures is classified as “redeemable noncontrolling interests” and “redeemable limited partners” in the mezzanine section of the accompanying consolidated balance sheets of ACC and the Operating Partnership, respectively. During the three months ended March 31, 2019 , there were no changes in the redemption value of redeemable noncontrolling interest that resulted from a change in the fair value of the net assets held by the Core Joint Ventures. The third-party partners’ share of the income or loss of the joint ventures described above is calculated based on the partners’ economic interest in the joint ventures and is included in “net income attributable to noncontrolling interests” on the consolidated statements of comprehensive income of ACC, and is reported as “net income attributable to noncontrolling interests - partially owned properties” on the consolidated statements of comprehensive income of the Operating Partnership. Operating Partnership Ownership Also included in redeemable noncontrolling interests (ACC) / redeemable limited partners (Operating Partnership) are OP Units for which the Operating Partnership is required, either by contract or securities law, to deliver registered common shares of ACC to the exchanging OP unit holder, or for which the Operating Partnership has the intent or history of exchanging such units for cash. The units classified as such include Series A Preferred Units (“Preferred OP Units”) as well as Common OP Units. The value of OP Units is reported at the greater of fair value, which is based on the closing market value of the Company’s common stock at period end, or historical cost at the end of each reporting period. The OP Unitholders’ share of the income or loss of the Company is included in “net income attributable to noncontrolling interests” on the consolidated statements of comprehensive income of ACC. As of March 31, 2019 and December 31, 2018 , approximately 0.5% of the equity interests of the Operating Partnership were held by owners of Common OP Units and Preferred OP Units not held by ACC or ACC Holdings. During the three months ended March 31, 2019 , 42,271 Preferred OP Units were converted into an equal number of shares of ACC’s common stock. During the year ended December 31, 2018 , 412,343 Common OP Units were converted into an equal number of shares of ACC’s common stock. Below is a table summarizing the activity of redeemable noncontrolling interests (ACC) / redeemable limited partners (Operating Partnership) for the three months ended March 31, 2019 , which includes both the redeemable joint venture partners and OP Units discussed above: Balance, December 31, 2018 $ 184,446 Net income 259 Distributions (305 ) Conversion of OP Units into shares of ACC common stock (252 ) Adjustments to reflect OP Units at fair value 2,547 Balance, March 31, 2019 $ 186,695 Balance, December 31, 2017 $ 132,169 Net income 210 Distributions, net of contributions (376 ) Conversion of OP Units into shares of ACC common stock (478 ) Adjustments to reflect OP Units at fair value (4,526 ) Balance, March 31, 2018 $ 126,999 |
Incentive Award Plan
Incentive Award Plan | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Incentive Award Plan | Incentive Award Plan In May 2018, the Company’s stockholders approved the American Campus Communities, Inc. 2018 Incentive Award Plan (the “2018 Plan”). The 2018 Plan replaced the Company’s 2010 Incentive Award Plan (the “2010 Plan”). The 2018 Plan provides for the grant of various stock-based incentive awards to selected employees and directors of the Company and the Company’s affiliates. The types of awards that may be granted under the 2018 Plan include incentive stock options, nonqualified stock options, restricted stock awards (“RSAs”), restricted stock units (“RSUs”), profits interest units (“PIUs”) and other stock-based awards. The Company has reserved a total 3.5 million shares of the Company’s common stock for issuance pursuant to the 2018 Plan, subject to certain adjustments for changes in the Company’s capital structure, as defined in the 2018 Plan. Upon approval of the 2018 Plan, all remaining authorized shares that were not granted under the 2010 Plan were forfeited and are no longer available for issuance as new awards. Restricted Stock Awards (“RSAs”) A summary of RSAs as of March 31, 2019 and activity during the three months then ended is presented below: Number of RSAs Nonvested balance at December 31, 2018 862,680 Granted 383,087 Vested (1) (266,556 ) Forfeited (5,295 ) Nonvested balance at March 31, 2019 973,916 (1) Includes shares withheld to satisfy tax obligations upon vesting. The fair value of RSAs is calculated based on the closing market value of ACC’s common stock on the date of grant. The fair value of these awards is amortized to expense over the vesting periods. Amortization expense for the three months ended March 31, 2019 and 2018 amounted to approximately $3.8 million and $3.3 million , respectively. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and forward starting swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Forward starting swaps are used to protect the Company against adverse fluctuations in interest rates by reducing its exposure to variability in cash flows relating to interest payments on a forecasted issuance of debt. As disclosed in Note 2, the adoption of ASU 2017-12 did not have a material effect on the Company’s consolidated financial statements. The change in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in other comprehensive income (“OCI”) (outside of earnings) and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings within the same income statement line item as the earnings effect of the hedged transaction. The following table summarizes the Company’s outstanding interest rate swap contracts and forward starting swap contracts which are included in other assets and other liabilities on the accompanying consolidated balance sheets as of March 31, 2019 : Hedged Debt Instrument Effective Date Maturity Date Pay Fixed Rate Receive Floating Rate Index Current Notional Amount Fair Value Cullen Oaks mortgage loan Feb 18, 2014 Feb 15, 2021 2.2750% LIBOR - 1 month $ 13,014 $ (6 ) Cullen Oaks mortgage loan Feb 18, 2014 Feb 15, 2021 2.2750% LIBOR - 1 month 13,148 (6 ) Park Point mortgage loan Feb 1, 2019 Jan 16, 2024 2.7475% LIBOR - 1 month 70,000 (1,919 ) Unsecured corporate debt (1) Sep 30, 2019 Sep 30, 2029 2.8020% LIBOR - 3 month 100,000 (3,490 ) Unsecured corporate debt (1) Sep 30, 2019 Sep 30, 2029 2.8025% LIBOR - 3 month 50,000 (1,742 ) Unsecured corporate debt (1) Sep 30, 2019 Sep 30, 2029 2.7990% LIBOR - 3 month 50,000 (1,727 ) Total $ 296,162 $ (8,890 ) (1) Represents forward starting swaps to hedge forecasted issuances of unsecured debt. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets as of March 31, 2019 and December 31, 2018 : Asset Derivatives Liability Derivatives Fair Value as of Fair Value as of Description Balance Sheet Location March 31, 2019 December 31, 2018 Balance Sheet Location March 31, 2019 December 31, 2018 Interest rate swap contracts Other assets $ — $ 101 Other liabilities $ 1,931 $ — Forward starting swap contracts Other assets — — Other liabilities 6,959 2,287 Total derivatives designated $ — $ 101 $ 8,890 $ 2,287 The table below presents the effect of the Company’s derivative financial instruments on the accompanying consolidated statements of comprehensive income for the three months ended March 31, 2019 and 2018 . Three Months Ended March 31, Description 2019 2018 Amount of (loss) gain recognized in OCI on derivatives $ (5,896 ) $ 363 Amount of loss reclassified from accumulated OCI into interest expense $ 102 $ 102 Interest expense presented in the consolidated statements of comprehensive income in which the effects of cash flow hedges are recorded $ 27,061 $ 23,684 Credit-risk-related Contingent Features The Company has agreements with some of its derivative counterparties that contain a provision such that if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. Similarly, the Company has agreements with some of its derivative counterparties that contain a provision such that the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness. |
Fair Value Disclosures
Fair Value Disclosures | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures Financial Instruments Carried at Fair Value The following table presents information about the Company’s financial instruments measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018 , and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities the Company has the ability to access. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets and inputs other than quoted prices observable for the asset or liability, such as interest rates and yield curves observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In instances in which the inputs used to measure fair value may fall into different levels of the fair value hierarchy, the level in the fair value hierarchy within which the fair value measurement in its entirety has been determined is based on the lowest level input significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. Disclosures concerning financial instruments measured at fair value are as follows: Fair Value Measurements as of March 31, 2019 December 31, 2018 Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Derivative financial instruments $ — $ — $ — $ — $ — $ 101 $ — $ 101 Liabilities: Derivative financial instruments $ — $ 8,890 $ — $ 8,890 $ — $ 2,287 $ — $ 2,287 Mezzanine: Redeemable noncontrolling interests (Company)/Redeemable limited partners (Operating Partnership) $ — $ 29,977 $ 156,718 $ 186,695 $ — $ 27,828 $ 156,618 $ 184,446 The OP Unit component of redeemable noncontrolling interests has a redemption feature, and is marked to its redemption value when the redemption value exceeds the original issue price. The redemption value is based on the fair value of the Company’s common stock at the redemption date, and is therefore calculated based on the fair value of the Company’s common stock at the balance sheet date. Since the valuation is based on observable inputs such as quoted prices for similar instruments in active markets, these instruments are classified in Level 2 of the fair value hierarchy. As discussed in Note 7 , the redeemable noncontrolling interests related to the joint venture partners in the Core Transaction are marked to their redemption value at each balance sheet date. The redemption value is based on the fair value of the underlying properties held by the joint ventures. This analysis incorporates information obtained from a number of sources, including the Company’s analysis of comparable properties in the Company’s portfolio, estimations of net operating results of the properties, capitalization rates, discount rates, and other market data. The Company has determined these estimates are primarily based upon unobservable inputs and therefore are considered to be Level 3 inputs within the fair value hierarchy. Financial Instruments Not Carried at Fair Value Cash and Cash Equivalents, Restricted Cash, Student Contracts Receivable, certain items in Other Assets (including receivables, deposits, and prepaid expenses), Accounts Payable and Accrued Expenses and Other Liabilities: The Company estimates that the carrying amount approximates fair value, due to the short maturity of these instruments. Loans Receivable : The fair value of loans receivable is based on a discounted cash flow analysis consisting of scheduled cash flows and discount rate estimates to approximate those that a willing buyer and seller might use. These financial instruments utilize Level 3 inputs. Mortgage Loans Payable : The fair value of mortgage loans payable is based on the present value of the cash flows at current market interest rates through maturity. The Company has concluded the fair value of these financial instruments utilize Level 2 inputs as the majority of the inputs used to value these instruments fall within Level 2 of the fair value hierarchy. Bonds Payable : The fair value of bonds payable is based on quoted prices in markets that are not active due to the unique characteristics of these financial instruments; as such, the Company has concluded the inputs used to measure fair value fall within Level 2 of the fair value hierarchy. Unsecured Notes : In calculating the fair value of unsecured notes, interest rate and spread assumptions reflect current creditworthiness and market conditions available for the issuance of unsecured notes with similar terms and remaining maturities. These financial instruments utilize Level 2 inputs. Construction Loans Payable, Unsecured Revolving Credit Facility, and Unsecured Term Loans : The fair value of these instruments approximates their carrying values due to the variable interest rate feature of these instruments. The table below contains the estimated fair value and related carrying amounts for the Company’s financial instruments as of March 31, 2019 and December 31, 2018 : March 31, 2019 December 31, 2018 Estimated Fair Value Carrying Amount Estimated Fair Value Carrying Amount Assets: Loans receivable $ 50,993 $ 55,383 $ 50,993 $ 54,611 Liabilities: Unsecured notes $ 1,592,615 $ 1,589,096 (1) $ 1,566,900 $ 1,588,446 (1) Mortgage loans payable $ 737,020 $ 760,093 (2) $ 668,911 $ 693,384 (3) Bonds payable $ 28,911 $ 26,760 (4) $ 28,805 $ 26,741 (4) (1) Includes net unamortized OID and net unamortized deferred financing costs (see Note 5 ). (2) Includes net unamortized debt premiums and discounts and net unamortized deferred financing costs (see Note 5 ). Does not include one variable rate mortgage loan with a principal balance of $41.2 million as of March 31, 2019. (3) Includes net unamortized debt premiums and discounts and net unamortized deferred financing costs (see Note 5 ). Does not include two variable rate mortgage loans with a combined principal balance of $111.4 million as of December 31, 2018. (4) Includes net unamortized deferred financing costs (see Note 5 ). |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases Refer to Note 2 for information on the impact of the adoption of the New Leases Standard. As Lessee The Company, as lessee, has entered into 50 ground/facility and office space lease agreements, which qualify as operating leases under the New Leases Standard. These leases include leases entered into under the ACE program with university systems and Walt Disney World ® Resort, leases with local and regional land owners for owned off-campus properties, leases for corporate office space, and leases under the OCPP structure. Under such leases, the lessors receive annual minimum (base) rent, variable rent based upon the operating performance of the property, or a combination thereof. The leases have original terms (excluding extension options) ranging from seven to 102 years. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company records base rent expense under the straight-line method over the term of the lease, and variable rent expense is recorded when the achievement of the target is considered probable. Straight-line rent is capitalized during the construction period and expensed upon the commencement of operations. In the accompanying consolidated statements of comprehensive income, rent expense for ACE properties and OCPPs is included in ground/facility lease expense, and rent expense for owned off-campus properties is included in owned properties operating expenses. Total straight line rent expense, variable rent expense, and capitalized rent costs for the three months ended March 31, 2019 was $2.5 million , $2.6 million , and $2.5 million , respectively. As of March 31, 2019, ROU Assets, which are included in other assets on the accompanying consolidated balance sheet, were approximately $280.0 million . For purposes of calculating the ROU Asset and lease liability for such leases, extension options are not included in the lease term unless it is reasonably certain that the Company will exercise the option, or the lessor has the sole ability to exercise the option. As most of the Company’s leases do not contain an implicit rate, the Company uses its incremental borrowing rate to determine the present value of the lease payments. This involves determining a secured interest rate for each lease based on the term of the respective lease. The weighted average incremental borrowing rate was 6.03% as of March 31, 2019 . The weighted average remaining lease term of leases with a lease liability as of March 31, 2019 is 58.2 years (excluding extension options). There were no finance lease obligations outstanding as of March 31, 2019 . Future minimum commitments over the life of all operating leases, which exclude variable rent payments, are as follows: March 31, 2019 December 31, 2018 2019 $ 8,331 (1) $ 9,463 2020 11,814 12,092 2021 16,280 16,653 2022 18,988 18,999 2023 19,067 18,903 Thereafter 1,049,874 1,042,842 Total minimum lease payments 1,124,354 $ 1,118,952 Less imputed interest (841,804 ) Total lease liabilities $ 282,550 (1) Excluding the three months ended March 31, 2019 . As Lessor The Company’s primary business involves leasing properties to students under agreements that are classified as operating leases, and which have terms of 12 months or less. These student leases do not provide for variable rent payments. The Company is also a lessor under commercial leases at certain owned properties, some of which provide for variable lease payments based upon tenant performance such as a percentage of sales. The Company recognizes the base lease payments provided for under the leases on a straight-line basis over the lease term, and variable payments are recognized in the period in which the changes in facts and circumstances on which the variable payments are based occur. Lease income under both student and commercial leases is included in owned property revenues in the accompanying consolidated statements of comprehensive income. Lease income under student leases totaled $221.7 million and $201.7 million for the three months ended March 31, 2019 and 2018 , respectively, and lease income under commercial leases totaled $3.4 million and $3.3 million for the three months ended March 31, 2019 and 2018 , respectively. |
Leases | Leases Refer to Note 2 for information on the impact of the adoption of the New Leases Standard. As Lessee The Company, as lessee, has entered into 50 ground/facility and office space lease agreements, which qualify as operating leases under the New Leases Standard. These leases include leases entered into under the ACE program with university systems and Walt Disney World ® Resort, leases with local and regional land owners for owned off-campus properties, leases for corporate office space, and leases under the OCPP structure. Under such leases, the lessors receive annual minimum (base) rent, variable rent based upon the operating performance of the property, or a combination thereof. The leases have original terms (excluding extension options) ranging from seven to 102 years. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company records base rent expense under the straight-line method over the term of the lease, and variable rent expense is recorded when the achievement of the target is considered probable. Straight-line rent is capitalized during the construction period and expensed upon the commencement of operations. In the accompanying consolidated statements of comprehensive income, rent expense for ACE properties and OCPPs is included in ground/facility lease expense, and rent expense for owned off-campus properties is included in owned properties operating expenses. Total straight line rent expense, variable rent expense, and capitalized rent costs for the three months ended March 31, 2019 was $2.5 million , $2.6 million , and $2.5 million , respectively. As of March 31, 2019, ROU Assets, which are included in other assets on the accompanying consolidated balance sheet, were approximately $280.0 million . For purposes of calculating the ROU Asset and lease liability for such leases, extension options are not included in the lease term unless it is reasonably certain that the Company will exercise the option, or the lessor has the sole ability to exercise the option. As most of the Company’s leases do not contain an implicit rate, the Company uses its incremental borrowing rate to determine the present value of the lease payments. This involves determining a secured interest rate for each lease based on the term of the respective lease. The weighted average incremental borrowing rate was 6.03% as of March 31, 2019 . The weighted average remaining lease term of leases with a lease liability as of March 31, 2019 is 58.2 years (excluding extension options). There were no finance lease obligations outstanding as of March 31, 2019 . Future minimum commitments over the life of all operating leases, which exclude variable rent payments, are as follows: March 31, 2019 December 31, 2018 2019 $ 8,331 (1) $ 9,463 2020 11,814 12,092 2021 16,280 16,653 2022 18,988 18,999 2023 19,067 18,903 Thereafter 1,049,874 1,042,842 Total minimum lease payments 1,124,354 $ 1,118,952 Less imputed interest (841,804 ) Total lease liabilities $ 282,550 (1) Excluding the three months ended March 31, 2019 . As Lessor The Company’s primary business involves leasing properties to students under agreements that are classified as operating leases, and which have terms of 12 months or less. These student leases do not provide for variable rent payments. The Company is also a lessor under commercial leases at certain owned properties, some of which provide for variable lease payments based upon tenant performance such as a percentage of sales. The Company recognizes the base lease payments provided for under the leases on a straight-line basis over the lease term, and variable payments are recognized in the period in which the changes in facts and circumstances on which the variable payments are based occur. Lease income under both student and commercial leases is included in owned property revenues in the accompanying consolidated statements of comprehensive income. Lease income under student leases totaled $221.7 million and $201.7 million for the three months ended March 31, 2019 and 2018 , respectively, and lease income under commercial leases totaled $3.4 million and $3.3 million for the three months ended March 31, 2019 and 2018 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Construction Contracts: As of March 31, 2019 , excluding two properties under construction and subject to presale arrangements which are being funded by construction loans, the Company estimates additional costs to complete six owned development projects under construction to be approximately $446.1 million . Joint Ventures: As part of the Core Transaction, the Company entered into two joint ventures during the third quarter of 2017. As part of this transaction, the Company is obligated to increase its investment in the joint ventures over a two year period. As of March 31, 2019 , the remaining funding commitment was approximately $154.0 million . Presale Development Projects: The Company has entered into two presale agreements to purchase properties which will be completed in Fall 2019. Total estimated development costs of approximately $107.3 million include the purchase price and elected upgrades, of which $87.1 million remains to be funded as of March 31, 2019 . The Company is obligated to purchase the properties as long as the developer meets certain construction completion deadlines and other closing conditions. As a part of the presale agreements, the Company has the option to elect not to purchase the asset, which would result in the Company paying a significant penalty. The Company is responsible for leasing, management, and initial operations of the project while the third-party developer retains development risk during the construction period. See Note 7 for further discussion. The Company expects to fund the commitments mentioned above through a combination of proceeds from cash flows generated from operations, anticipated property dispositions, joint venture activity, and a combination of debt and equity transactions, which may include net proceeds from the ATM Equity Program discussed in Note 6 , borrowings under the Company’s existing unsecured credit facilities, and accessing the unsecured bond market. Contingencies Development-related Guarantees: For certain of its third-party development projects, the Company commonly provides alternate housing and project cost guarantees, subject to force majeure. These guarantees are typically limited, on an aggregate basis, to the amount of the projects’ related development fees or a contractually agreed-upon maximum exposure amount. Alternate housing guarantees generally require the Company to provide substitute living quarters and transportation for students to and from the university if the project is not complete by an agreed-upon completion date. These guarantees typically expire at the later of five days after completion of the project or once the Company has moved all students from the substitute living quarters into the project. Under project cost guarantees, the Company is responsible for the construction cost of a project in excess of an approved budget. The budget consists primarily of costs included in the general contractors’ guaranteed maximum price contract (“GMP”). In most cases, the GMP obligates the general contractor, subject to force majeure and approved change orders, to provide completion date guarantees and to cover cost overruns and liquidated damages. In addition, the GMP is in certain cases secured with payment and performance bonds. Project cost guarantees expire upon completion of certain developer obligations, which are normally satisfied within one year after completion of the project. The Company’s estimated maximum exposure amount under the above guarantees is approximately $15.8 million as of March 31, 2019 . As of March 31, 2019 , management did not anticipate any material deviations from schedule or budget related to third-party development projects currently in progress. In the normal course of business, the Company enters into various development-related purchase commitments with parties that provide development-related goods and services. In the event that the Company was to terminate development services prior to the completion of projects under construction, the Company could potentially be committed to satisfy outstanding purchase orders with such parties. As a part of the development agreement with Walt Disney World ® Resort, the Company has guaranteed the completion of construction of a $614.6 million project to be delivered in phases from 2020 to 2023. In addition, the Company is subject to a development guarantee in the event that the substantial completion of a project phase is delayed beyond its respective targeted delivery date, except in circumstances resulting in unavoidable delays. The agreement dictates that the Company shall pay damages of $20 per bed for each day of delay for any Disney College Internship Program participant who was either scheduled to live in the delayed phase as well as any participant who was not able to participate in the program due to the lack of available housing and would have otherwise been housed in the delayed phase. Under the agreement, the maximum exposure related to the Disney project assuming all beds are not delivered on their respective delivery date is approximately $0.2 million per day. Conveyance to University: In August 2013, the Company entered into an agreement to convey fee interest in a parcel of land, on which one of the Company’s student housing properties resides (University Crossings), to Drexel University (the “University”). Concurrent with the land conveyance, the Company as lessee entered into a ground lease agreement with the University as lessor for an initial term of 40 years , with three 10 -year extensions, at the Company’s option. The Company also agreed to convey the building and improvements to the University at an undetermined date in the future and to pay real estate transfer taxes not to exceed $2.4 million . The Company paid approximately $0.6 million in real estate transfer taxes upon the conveyance of land to the University, leaving approximately $1.8 million to be paid by the Company upon the transfer of the building and improvements. Pre-development expenditures: The Company incurs pre-development expenditures such as architectural fees, permits, and deposits associated with the pursuit of third-party and owned development projects. The Company bears the risk of loss of these pre-development expenditures if financing cannot be arranged or the Company is unable to obtain the required permits and authorizations for the project. As such, management periodically evaluates the status of third-party and owned projects that have not yet commenced construction and expenses any deferred costs related to projects whose current status indicates the commencement of construction is unlikely and/or the costs may not provide future value to the Company in the form of revenues. As of March 31, 2019 , the Company has deferred approximately $8.2 million in pre-development costs related to third-party and owned development projects that have not yet commenced construction. Such costs are included in other assets on the accompanying consolidated balance sheets. Other Guarantees: In 2017, as part of the purchase of an undeveloped land parcel, the Company entered into an agreement to construct a commercial retail space within a project under development that will be conveyed back to the seller upon construction completion. If the construction of the retail space is not completed in accordance with the agreement, the Company is required to pay liquidated damages of $2.1 million . As of March 31, 2019 , management anticipates completing construction of the retail space in accordance with the agreement. Litigation: The Company is subject to various claims, lawsuits and legal proceedings, as well as other matters that have not been fully resolved and that have arisen in the ordinary course of business. While it is not possible to ascertain the ultimate outcome of such matters, management believes that the aggregate amount of such liabilities, if any, in excess of amounts provided or covered by insurance, will not have a material adverse effect on the consolidated financial position or results of operations of the Company. However, the outcome of claims, lawsuits and legal proceedings brought against the Company is subject to significant uncertainty. Therefore, although management considers the likelihood of such an outcome to be remote, the ultimate results of these matters cannot be predicted with certainty. Letters of Intent: In the ordinary course of the Company’s business, the Company enters into letters of intent indicating a willingness to negotiate for acquisitions, dispositions or joint ventures. Such letters of intent are non-binding (except with regard to exclusivity and confidentiality), and neither party to the letter of intent is obligated to pursue negotiations unless and until a definitive contract is entered into by the parties. Even if definitive contracts are entered into, the letters of intent relating to the acquisition and disposition of real property and resulting contracts generally contemplate that such contracts will provide the acquirer with time to evaluate the property and conduct due diligence, during which periods the acquirer will have the ability to terminate the contracts without penalty or forfeiture of any material deposit or earnest money. There can be no assurance that definitive contracts will be entered into with respect to any matter covered by letters of intent or that the Company will consummate any transaction contemplated by any definitive contract. Furthermore, due diligence periods for real property are frequently extended as needed. Once the due diligence period expires, the Company is then at risk under a real property acquisition contract, but only to the extent of any non-refundable earnest money deposits associated with the contract and subject to normal closing conditions being met. Environmental Matters: The Company is not aware of any environmental liability with respect to the properties that would have a material adverse effect on the Company’s business, assets or results of operations. However, there can be no assurance that such a material environmental liability does not exist. The existence of any such material environmental liability could have an adverse effect on the Company’s results of operations and cash flows. |
Segments
Segments | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segments | Segments The Company defines business segments by their distinct customer base and service provided. The Company has identified four reportable segments: Owned Properties, On-Campus Participating Properties, Development Services, and Property Management Services. Management evaluates each segment’s performance based on operating income before depreciation, amortization and minority interests. Three Months Ended 2019 2018 Owned Properties Rental revenues and other income $ 225,201 $ 206,389 Interest income 119 381 Total revenues from external customers 225,320 206,770 Operating expenses before depreciation, amortization, and ground/facility lease expense (92,169 ) (88,060 ) Ground/facility lease expense (2,667 ) (2,047 ) Interest expense, net (1) (4,763 ) (1,629 ) Operating income before depreciation and amortization $ 125,721 $ 115,034 Depreciation and amortization $ 65,632 $ 61,808 Capital expenditures $ 115,519 $ 134,250 On-Campus Participating Properties Rental revenues and other income $ 11,448 $ 10,443 Interest income 41 21 Total revenues from external customers 11,489 10,464 Operating expenses before depreciation, amortization, and ground/facility lease expense (3,957 ) (3,425 ) Ground/facility lease expense (882 ) (795 ) Interest expense, net (1) (1,303 ) (1,253 ) Operating income before depreciation and amortization $ 5,347 $ 4,991 Depreciation and amortization $ 2,056 $ 1,942 Capital expenditures $ 230 $ 1,146 Development Services Development and construction management fees $ 3,171 $ 846 Operating expenses (1,886 ) (2,205 ) Operating income (loss) before depreciation and amortization $ 1,285 $ (1,359 ) Property Management Services Property management fees from external customers $ 2,311 $ 2,731 Operating expenses (2,300 ) (1,993 ) Operating income before depreciation and amortization $ 11 $ 738 Reconciliations Total segment revenues and other income $ 242,291 $ 220,811 Unallocated interest income earned on investments and corporate cash 766 821 Total consolidated revenues, including interest income $ 243,057 $ 221,632 Segment operating income before depreciation and amortization $ 132,364 $ 119,404 Depreciation and amortization (69,887 ) (66,193 ) Net unallocated expenses relating to corporate interest and overhead (27,544 ) (26,680 ) Provision for real estate impairment (3,201 ) — Income tax provision (364 ) (281 ) Net income $ 31,368 $ 26,250 (1) Net of capitalized interest and amortization of debt premiums. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Distributions : On May 1, 2019 , the Board of Directors of the Company declared a distribution per share of $0.47 , which will be paid on May 24, 2019 to all common stockholders of record as of May 13, 2019 . At the same time, the Operating Partnership will pay an equivalent amount per unit to holders of Common OP Units, as well as the quarterly cumulative preferential distribution to holders of Preferred OP Units (see Note 7 ). |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and use of Estimates | Basis of Presentation and use of Estimates The accompanying consolidated financial statements, presented in U.S. dollars, are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the date of the financial statements, and revenue and expenses during the reporting periods. The Company’s actual results could differ from those estimates and assumptions. All material intercompany transactions among consolidated entities have been eliminated. All dollar amounts in the tables herein, except share, per share, unit and per unit amounts, are stated in thousands unless otherwise indicated. |
Principles of Consolidation | Principles of Consolidation The Company’s consolidated financial statements include its accounts and the accounts of other subsidiaries and joint ventures (including partnerships and limited liability companies) over which it has control. Investments acquired or created are evaluated based on the accounting guidance relating to variable interest entities (“VIEs”), which requires the consolidation of VIEs in which the Company is considered to be the primary beneficiary. If the investment is determined not to be a VIE, then the investment is evaluated for consolidation using the voting interest model. |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued Accounting Pronouncements The Company does not expect the following accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”) to have a material effect on its consolidated financial statements: Accounting Standards Update Effective Date ASU 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract” January 1, 2020 ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement” January 1, 2020 ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” January 1, 2020 Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02 (“ASU 2016-12”), “Leases (Topic 842): Amendments to the FASB Accounting Standards Codification.” ASU 2016-02 outlines principles for the recognition, measurement, presentation and disclosure of leases. Subsequent to the issuance of ASU 2016-02, the FASB issued additional ASUs clarifying aspects of the new lease accounting standard, which are effective upon adoption of ASU 2016-02. These lease-related ASUs are collectively referred to as the “New Leases Standard.” The Company adopted the New Leases Standard on January 1, 2019, utilizing the modified retrospective transition approach. Under this approach, the Company elected to apply the new standard to leases that were in place as of January 1, 2019. Results for reporting periods beginning January 1, 2019 are presented under the New Leases Standard. Upon adoption, the Company did not record an adjustment to beginning retained earnings. In addition, the Company adopted the following additional practical expedients available for implementation: • An entity need not reassess whether any existing or expired contracts are or contain leases; • An entity need not reassess lease classification for any existing or expired leases; and • An entity need not reassess initial direct costs for any existing leases. As Lessee: • Under the New Leases Standard, lessees classify leases as either operating or finance leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification determines whether lease expense is recognized on a straight-line basis over the term of the lease (operating lease) or under the effective interest method (finance lease). In addition, the New Leases Standard requires lessees to recognize right-of-use assets and related lease liabilities for leases with a term greater than 12 months regardless of their lease classification. • Upon adoption of the New Leases Standard on January 1, 2019, the Company was a lessee under 28 ground leases and two corporate office headquarters leases for which it recorded $278.2 million in right of use assets (“ROU Assets”), which are included in other assets on the accompanying consolidated balance sheet, and $277.5 million of operating lease liabilities. • Because the Company’s existing leases under which it is a lessee will continue to be classified as operating leases, the timing and pattern of lease expense recognition (straight-line basis) will remain unchanged. However, for any leases entered into or modified after January 1, 2019 the leases will need to be evaluated under the New Leases Standard and may be classified as finance leases depending on the terms of the transactions. As Lessor: • Under the New Leases Standard, the accounting for lessors remained largely unchanged from current GAAP; however, ASU 2016-02 required that lessors expense, on an as-incurred basis, certain initial direct costs that are not incremental in negotiating a lease. Under existing standards, these costs are capitalizable and therefore the New Leases Standard will result in certain of these costs being expensed as incurred after adoption. For the Company, these costs include internal leasing payroll costs incurred for owned and presale development projects, as well as certain legal expenses incurred when negotiating commercial leases. • The New Leases Standard also required lessors to evaluate collectability of all operating lease payments in a contract at lease commencement and thereafter. If the operating lease payments are deemed not probable of collection, adjustments are recognized as a reduction to lease income. This resulted in the reclassification of the provision for uncollectible accounts from operating expenses to revenue. This adjustment is reflected on a prospective basis in the accompanying consolidated statements of comprehensive income, starting in the three months ended March 31, 2019. The adjustments to lease income for owned properties and on-campus participating properties were a $1.1 million reduction to income and a $0.8 million addition to income, respectively, for the three months ended March 31, 2019. • The New Leases Standard provides a practical expedient that allows lessors to not separate certain lease and non-lease components if certain criteria are met. The Company assessed the criteria and determined that the timing and pattern of transfer for common area maintenance and the related rental revenue is the same. Therefore, the Company elected the practical expedient which resulted in no change to how revenue is currently recorded. Other In addition, on January 1, 2019 , the Company adopted the following accounting pronouncements which did not have a material effect on the Company’s consolidated financial statements: • ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” • ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” |
Interim Financial Statements | Interim Financial Statements The accompanying interim financial statements are unaudited, but have been prepared in accordance with GAAP for interim financial information and in conjunction with the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting solely of normal recurring matters) necessary for a fair presentation of the financial statements of the Company for these interim periods have been included. Because of the seasonal nature of the Company’s operations, the results of operations and cash flows for any interim period are not necessarily indicative of results for other interim periods or for the full year. These financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . |
Investments in Real Estate | Investments in Real Estate Investments in real estate are recorded at historical cost. Major improvements that extend the life of an asset are capitalized and depreciated over the remaining useful life of the asset. The cost of ordinary repairs and maintenance are charged to expense when incurred. Depreciation and amortization are recorded on a straight-line basis over the estimated useful lives of the assets as follows: Buildings and improvements 7-40 years Leasehold interest - on-campus participating properties 25-34 years (shorter of useful life or respective lease term) Furniture, fixtures and equipment 3-7 years Project costs directly associated with the development and construction of an owned real estate project, which include interest, property taxes, and amortization of deferred financing costs, are capitalized as construction in progress. Upon completion of the project, costs are transferred into the applicable asset category and depreciation commences. Interest totaling approximately $2.7 million and $3.0 million was capitalized during the three months ended March 31, 2019 and 2018 . Management assesses whether there has been an impairment in the value of the Company’s investments in real estate whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment is recognized when estimated expected future undiscounted cash flows are less than the carrying value of the property, or when a property meets the criteria to be classified as held for sale, at which time an impairment charge is recognized for any excess of the carrying value of the property over the expected net proceeds from the disposal. The estimation of expected future net cash flows is inherently uncertain and relies on assumptions regarding current and future economics and market conditions. If such conditions change, then an adjustment to the carrying value of the Company’s long-lived assets could occur in the future period in which the conditions change. To the extent that a property is impaired, the excess of the carrying amount of the property over its estimated fair value is charged to earnings. In the case of any impairment, the valuation would be based on Level 3 inputs. There were no impairments of the carrying values of the Company's investments in real estate as of March 31, 2019 , other than a $3.2 million impairment charge recorded on March 31, 2019 concurrent with the classification of one owned property as held for sale. |
Long-Lived Assets - Held for Sale | Long-Lived Assets–Held for Sale Long-lived assets to be disposed of are classified as held for sale in the period in which all of the following criteria are met: a. Management, having the authority to approve the action, commits to a plan to sell the asset. b. The asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets. c. An active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated. d. The sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one year. e. The asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value. f. Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Concurrent with this classification, the asset is recorded at the lower of cost or fair value less estimated selling costs, and depreciation ceases. The Company had one property classified as held for sale as of March 31, 2019 . |
Restricted Cash | Restricted Cash Restricted cash consists of funds held in trust and invested in low risk investments, generally consisting of government backed securities, as permitted by the indentures of trusts, which were established in connection with three bond issues for the Company’s on-campus participating properties. Additionally, restricted cash includes escrow accounts held by lenders and resident security deposits, as required by law in certain states. Restricted cash also consists of escrow deposits made in connection with potential property acquisitions and development opportunities. These escrow deposits are invested in interest-bearing accounts at federally-insured banks. Realized and unrealized gains and losses are not material for the periods presented. |
Consolidated VIEs | Consolidated VIEs The Company has investments in various entities that qualify as VIEs for accounting purposes and for which the Company is the primary beneficiary and therefore includes the entities in its consolidated financial statements. These VIEs include the Operating Partnership, six joint ventures that own a total of 15 operating properties, two properties subject to presale arrangements, and six properties owned under the on-campus participating property structure. The VIE assets and liabilities consolidated within the Company's assets and liabilities are disclosed at the bottom of the Consolidated Balance Sheets. |
Earnings per Share - Company/Earnings per Unit - Operating Partnership | Earnings per Unit – Operating Partnership Basic earnings per OP Unit is computed using net income attributable to common unitholders and the weighted average number of common units outstanding during the period. Diluted earnings per OP Unit reflects the potential dilution that could occur if securities or other contracts to issue OP Units were exercised or converted into OP Units or resulted in the issuance of OP Units and then shared in the earnings of the Operating Partnership. Earnings per Share – Company Basic earnings per share is computed using net income attributable to common stockholders and the weighted average number of shares of the Company’s common stock outstanding during the period. Diluted earnings per share reflects common shares issuable from the assumed conversion of American Campus Communities Operating Partnership Units (“OP Units”) and common share awards granted. Only those items having a dilutive impact on basic earnings per share are included in diluted earnings per share. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Schedule of accounting pronouncements | The Company does not expect the following accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”) to have a material effect on its consolidated financial statements: Accounting Standards Update Effective Date ASU 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract” January 1, 2020 ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement” January 1, 2020 ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” January 1, 2020 |
Schedule of estimated useful lives of assets | Investments in Real Estate Investments in real estate are recorded at historical cost. Major improvements that extend the life of an asset are capitalized and depreciated over the remaining useful life of the asset. The cost of ordinary repairs and maintenance are charged to expense when incurred. Depreciation and amortization are recorded on a straight-line basis over the estimated useful lives of the assets as follows: Buildings and improvements 7-40 years Leasehold interest - on-campus participating properties 25-34 years (shorter of useful life or respective lease term) Furniture, fixtures and equipment 3-7 years |
Schedule of potentially dilutive securities not included in calculating diluted earnings per share | The following potentially dilutive securities were outstanding for the three months ended March 31, 2019 and 2018 , but were not included in the computation of diluted earnings per share because the effects of their inclusion would be anti-dilutive. Three Months Ended 2019 2018 Common OP Units (Note 7) 594,788 956,936 Preferred OP Units (Note 7) 64,361 77,513 Total potentially dilutive securities 659,149 1,034,449 |
Schedule of summary of elements used in calculating basic earnings per share/unit | The following is a summary of the elements used in calculating basic and diluted earnings per share: Three Months Ended 2019 2018 Numerator – basic and diluted earnings per share: Net income $ 31,368 $ 26,250 Net income attributable to noncontrolling interests (1,728 ) (323 ) Net income attributable to common stockholders 29,640 25,927 Amount allocated to participating securities (573 ) (506 ) Net income attributable to common stockholders $ 29,067 $ 25,421 Denominator: Basic weighted average common shares outstanding 137,101,535 136,525,557 Unvested restricted stock awards (Note 8) 1,050,843 974,406 Diluted weighted average common shares outstanding 138,152,378 137,499,963 Earnings per share: Net income attributable to common stockholders - basic $ 0.21 $ 0.19 Net income attributable to common stockholders - diluted $ 0.21 $ 0.18 |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Schedule of summary of elements used in calculating basic earnings per share/unit | The following is a summary of the elements used in calculating basic and diluted earnings per unit: Three Months Ended 2019 2018 Numerator – basic and diluted earnings per unit: Net income $ 31,368 $ 26,250 Net loss attributable to noncontrolling interests – partially owned properties (1,568 ) (114 ) Series A preferred unit distributions (31 ) (31 ) Amount allocated to participating securities (573 ) (506 ) Net income attributable to common unitholders $ 29,196 $ 25,599 Denominator: Basic weighted average common units outstanding 137,696,323 137,482,493 Unvested restricted stock awards (Note 8) 1,050,843 974,406 Diluted weighted average common units outstanding 138,747,166 138,456,899 Earnings per unit: Net income attributable to common unitholders - basic $ 0.21 $ 0.19 Net income attributable to common unitholders - diluted $ 0.21 $ 0.18 |
Investments in Owned Properti_2
Investments in Owned Properties (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Owned properties | |
Real Estate Properties [Line Items] | |
Schedule of real estate properties | Owned properties, both wholly-owned and those owned through investments in VIEs, consisted of the following: March 31, 2019 December 31, 2018 Land (1) $ 651,573 $ 653,522 Buildings and improvements 6,471,752 6,486,106 Furniture, fixtures and equipment 371,556 371,429 Construction in progress 397,811 302,902 7,892,692 7,813,959 Less accumulated depreciation (1,286,673 ) (1,230,562 ) Owned properties, net $ 6,606,019 (2) $ 6,583,397 (1) The land balance above includes undeveloped land parcels with book values of approximately $54.5 million as of both March 31, 2019 and December 31, 2018 . It also includes land totaling approximately $10.3 million as of both March 31, 2019 and December 31, 2018 related to properties under development. (2) Excludes the net book value of one property classified as held for sale in the accompanying consolidated balance sheet at March 31, 2019 . |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of summary of outstanding consolidated indebtedness, including unamortized debt premiums and discounts | A summary of the Company’s outstanding consolidated indebtedness, including unamortized debt premiums and discounts, is as follows: March 31, 2019 December 31, 2018 Debt secured by owned properties: Mortgage loans payable: Unpaid principal balance $ 725,606 $ 727,163 Unamortized deferred financing costs (1,961 ) (1,757 ) Unamortized debt premiums 10,333 11,579 733,978 736,985 Construction loans payable (1) 36,382 22,207 Unamortized deferred financing costs (205 ) (480 ) 770,155 758,712 Debt secured by on-campus participating properties: Mortgage loans payable (2) 67,384 67,867 Bonds payable (2) 27,030 27,030 Unamortized deferred financing costs (499 ) (525 ) 93,915 94,372 Total secured mortgage, construction and bond debt 864,070 853,084 Unsecured notes, net of unamortized OID and deferred financing costs (3) 1,589,096 1,588,446 Unsecured term loans, net of unamortized deferred financing costs (4) 198,857 198,769 Unsecured revolving credit facility 457,400 387,300 Total debt, net $ 3,109,423 $ 3,027,599 (1) Construction loans payable relate to construction loans partially financing the development of two presale development projects. These properties are owned by entities determined to be VIEs for which the Company is the primary beneficiary. The creditors of these construction loans do not have recourse to the assets of the Company. (2) The creditors of mortgage loans payable and bonds payable related to on-campus participating properties do not have recourse to the assets of the Company. (3) Includes net unamortized original issue discount (“OID”) of $1.5 million and $1.6 million at March 31, 2019 and December 31, 2018 , respectively, and net unamortized deferred financing costs of $9.4 million and $10.0 million at March 31, 2019 and December 31, 2018 , respectively. (4) Includes net unamortized deferred financing costs of $1.1 million and $1.2 million at March 31, 2019 and December 31, 2018 , respectively. The Company has issued the following senior unsecured notes: Date Issued Amount % of Par Value Coupon Yield Original Issue Discount Term (Years) April 2013 $ 400,000 99.659 3.750 % 3.791 % $ 1,364 10 June 2014 400,000 99.861 4.125 % 4.269 % (1) 556 10 September 2015 400,000 99.811 3.350 % 3.391 % 756 5 October 2017 400,000 99.912 3.625 % 3.635 % 352 10 $ 1,600,000 $ 3,028 (1) The yield includes the effect of the amortization of interest rate swap terminations (see Note 9 ). |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Schedule of summarized activity of redeemable limited partners | Below is a table summarizing the activity of redeemable noncontrolling interests (ACC) / redeemable limited partners (Operating Partnership) for the three months ended March 31, 2019 , which includes both the redeemable joint venture partners and OP Units discussed above: Balance, December 31, 2018 $ 184,446 Net income 259 Distributions (305 ) Conversion of OP Units into shares of ACC common stock (252 ) Adjustments to reflect OP Units at fair value 2,547 Balance, March 31, 2019 $ 186,695 Balance, December 31, 2017 $ 132,169 Net income 210 Distributions, net of contributions (376 ) Conversion of OP Units into shares of ACC common stock (478 ) Adjustments to reflect OP Units at fair value (4,526 ) Balance, March 31, 2018 $ 126,999 |
Incentive Award Plan (Tables)
Incentive Award Plan (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of restricted stock units and awards | A summary of RSAs as of March 31, 2019 and activity during the three months then ended is presented below: Number of RSAs Nonvested balance at December 31, 2018 862,680 Granted 383,087 Vested (1) (266,556 ) Forfeited (5,295 ) Nonvested balance at March 31, 2019 973,916 (1) Includes shares withheld to satisfy tax obligations upon vesting. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of summary of outstanding interest rate swap contracts | The following table summarizes the Company’s outstanding interest rate swap contracts and forward starting swap contracts which are included in other assets and other liabilities on the accompanying consolidated balance sheets as of March 31, 2019 : Hedged Debt Instrument Effective Date Maturity Date Pay Fixed Rate Receive Floating Rate Index Current Notional Amount Fair Value Cullen Oaks mortgage loan Feb 18, 2014 Feb 15, 2021 2.2750% LIBOR - 1 month $ 13,014 $ (6 ) Cullen Oaks mortgage loan Feb 18, 2014 Feb 15, 2021 2.2750% LIBOR - 1 month 13,148 (6 ) Park Point mortgage loan Feb 1, 2019 Jan 16, 2024 2.7475% LIBOR - 1 month 70,000 (1,919 ) Unsecured corporate debt (1) Sep 30, 2019 Sep 30, 2029 2.8020% LIBOR - 3 month 100,000 (3,490 ) Unsecured corporate debt (1) Sep 30, 2019 Sep 30, 2029 2.8025% LIBOR - 3 month 50,000 (1,742 ) Unsecured corporate debt (1) Sep 30, 2019 Sep 30, 2029 2.7990% LIBOR - 3 month 50,000 (1,727 ) Total $ 296,162 $ (8,890 ) (1) Represents forward starting swaps to hedge forecasted issuances of unsecured debt. |
Schedule of fair value of derivative financial instruments and classification on consolidated balance sheet | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets as of March 31, 2019 and December 31, 2018 : Asset Derivatives Liability Derivatives Fair Value as of Fair Value as of Description Balance Sheet Location March 31, 2019 December 31, 2018 Balance Sheet Location March 31, 2019 December 31, 2018 Interest rate swap contracts Other assets $ — $ 101 Other liabilities $ 1,931 $ — Forward starting swap contracts Other assets — — Other liabilities 6,959 2,287 Total derivatives designated $ — $ 101 $ 8,890 $ 2,287 |
Schedule of effect of derivative financial instruments on the income statement | The table below presents the effect of the Company’s derivative financial instruments on the accompanying consolidated statements of comprehensive income for the three months ended March 31, 2019 and 2018 . Three Months Ended March 31, Description 2019 2018 Amount of (loss) gain recognized in OCI on derivatives $ (5,896 ) $ 363 Amount of loss reclassified from accumulated OCI into interest expense $ 102 $ 102 Interest expense presented in the consolidated statements of comprehensive income in which the effects of cash flow hedges are recorded $ 27,061 $ 23,684 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instruments measured at fair value | Disclosures concerning financial instruments measured at fair value are as follows: Fair Value Measurements as of March 31, 2019 December 31, 2018 Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Derivative financial instruments $ — $ — $ — $ — $ — $ 101 $ — $ 101 Liabilities: Derivative financial instruments $ — $ 8,890 $ — $ 8,890 $ — $ 2,287 $ — $ 2,287 Mezzanine: Redeemable noncontrolling interests (Company)/Redeemable limited partners (Operating Partnership) $ — $ 29,977 $ 156,718 $ 186,695 $ — $ 27,828 $ 156,618 $ 184,446 |
Schedule of estimated fair value and related carrying amounts of mortgage loans and bonds payable | The table below contains the estimated fair value and related carrying amounts for the Company’s financial instruments as of March 31, 2019 and December 31, 2018 : March 31, 2019 December 31, 2018 Estimated Fair Value Carrying Amount Estimated Fair Value Carrying Amount Assets: Loans receivable $ 50,993 $ 55,383 $ 50,993 $ 54,611 Liabilities: Unsecured notes $ 1,592,615 $ 1,589,096 (1) $ 1,566,900 $ 1,588,446 (1) Mortgage loans payable $ 737,020 $ 760,093 (2) $ 668,911 $ 693,384 (3) Bonds payable $ 28,911 $ 26,760 (4) $ 28,805 $ 26,741 (4) (1) Includes net unamortized OID and net unamortized deferred financing costs (see Note 5 ). (2) Includes net unamortized debt premiums and discounts and net unamortized deferred financing costs (see Note 5 ). Does not include one variable rate mortgage loan with a principal balance of $41.2 million as of March 31, 2019. (3) Includes net unamortized debt premiums and discounts and net unamortized deferred financing costs (see Note 5 ). Does not include two variable rate mortgage loans with a combined principal balance of $111.4 million as of December 31, 2018. (4) Includes net unamortized deferred financing costs (see Note 5 ). |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Future Minimum Commitments of Operating Leases | There were no finance lease obligations outstanding as of March 31, 2019 . Future minimum commitments over the life of all operating leases, which exclude variable rent payments, are as follows: March 31, 2019 December 31, 2018 2019 $ 8,331 (1) $ 9,463 2020 11,814 12,092 2021 16,280 16,653 2022 18,988 18,999 2023 19,067 18,903 Thereafter 1,049,874 1,042,842 Total minimum lease payments 1,124,354 $ 1,118,952 Less imputed interest (841,804 ) Total lease liabilities $ 282,550 (1) Excluding the three months ended March 31, 2019 . |
Schedule of Future Minimum Rental Payments for Operating Leases | There were no finance lease obligations outstanding as of March 31, 2019 . Future minimum commitments over the life of all operating leases, which exclude variable rent payments, are as follows: March 31, 2019 December 31, 2018 2019 $ 8,331 (1) $ 9,463 2020 11,814 12,092 2021 16,280 16,653 2022 18,988 18,999 2023 19,067 18,903 Thereafter 1,049,874 1,042,842 Total minimum lease payments 1,124,354 $ 1,118,952 Less imputed interest (841,804 ) Total lease liabilities $ 282,550 (1) Excluding the three months ended March 31, 2019 . |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of segment information | Three Months Ended 2019 2018 Owned Properties Rental revenues and other income $ 225,201 $ 206,389 Interest income 119 381 Total revenues from external customers 225,320 206,770 Operating expenses before depreciation, amortization, and ground/facility lease expense (92,169 ) (88,060 ) Ground/facility lease expense (2,667 ) (2,047 ) Interest expense, net (1) (4,763 ) (1,629 ) Operating income before depreciation and amortization $ 125,721 $ 115,034 Depreciation and amortization $ 65,632 $ 61,808 Capital expenditures $ 115,519 $ 134,250 On-Campus Participating Properties Rental revenues and other income $ 11,448 $ 10,443 Interest income 41 21 Total revenues from external customers 11,489 10,464 Operating expenses before depreciation, amortization, and ground/facility lease expense (3,957 ) (3,425 ) Ground/facility lease expense (882 ) (795 ) Interest expense, net (1) (1,303 ) (1,253 ) Operating income before depreciation and amortization $ 5,347 $ 4,991 Depreciation and amortization $ 2,056 $ 1,942 Capital expenditures $ 230 $ 1,146 Development Services Development and construction management fees $ 3,171 $ 846 Operating expenses (1,886 ) (2,205 ) Operating income (loss) before depreciation and amortization $ 1,285 $ (1,359 ) Property Management Services Property management fees from external customers $ 2,311 $ 2,731 Operating expenses (2,300 ) (1,993 ) Operating income before depreciation and amortization $ 11 $ 738 Reconciliations Total segment revenues and other income $ 242,291 $ 220,811 Unallocated interest income earned on investments and corporate cash 766 821 Total consolidated revenues, including interest income $ 243,057 $ 221,632 Segment operating income before depreciation and amortization $ 132,364 $ 119,404 Depreciation and amortization (69,887 ) (66,193 ) Net unallocated expenses relating to corporate interest and overhead (27,544 ) (26,680 ) Provision for real estate impairment (3,201 ) — Income tax provision (364 ) (281 ) Net income $ 31,368 $ 26,250 (1) Net of capitalized interest and amortization of debt premiums. |
Organization and Description _2
Organization and Description of Business (Details) | 3 Months Ended |
Mar. 31, 2019PropertyBed | |
Real Estate Properties [Line Items] | |
Number of properties | 171 |
Number of beds | Bed | 109,400 |
Under Development | On-campus participating properties | |
Real Estate Properties [Line Items] | |
Number of properties under development | 8 |
Owned properties | Off Campus Properties | |
Real Estate Properties [Line Items] | |
Number of properties | 131 |
Owned properties | American Campus Equity | |
Real Estate Properties [Line Items] | |
Number of housing properties | 34 |
Owned properties | On-campus participating properties | |
Real Estate Properties [Line Items] | |
Number of properties | 6 |
Owned properties | Under Development | |
Real Estate Properties [Line Items] | |
Number of beds | Bed | 9,000 |
Management And Leasing Services | |
Real Estate Properties [Line Items] | |
Number of properties | 34 |
Number of beds | Bed | 24,300 |
Investments in real estate, net | |
Real Estate Properties [Line Items] | |
Number of properties | 205 |
Number of beds | Bed | 133,700 |
Maximum | |
Real Estate Properties [Line Items] | |
Initial term of contract | 5 years |
Minimum | |
Real Estate Properties [Line Items] | |
Initial term of contract | 1 year |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | |
Real Estate Properties [Line Items] | |
Limited partner interest (percent) | 99.50% |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | Maximum | |
Real Estate Properties [Line Items] | |
Ownership interest (percent) | 1.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands | Jan. 01, 2019USD ($)lease | Mar. 31, 2019USD ($)EntityPropertyagreement | Mar. 31, 2018USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of ground leases | lease | 28 | ||
Right-of-use assets | $ 280,000 | ||
Operating lease liabilities | 282,550 | ||
Capitalized interest | 2,700 | $ 3,000 | |
Provision for real estate impairment | $ 3,201 | $ 0 | |
Number of third-party joint venture partners (entities) | Entity | 6 | ||
Number of properties | Property | 171 | ||
Number of properties subject to presale arrangements | agreement | 2 | ||
Six joint ventures | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of properties | Property | 15 | ||
Owned property held for sale | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Provision for uncollectible accounts | $ 1,100 | ||
Provision for real estate impairment | $ 3,200 | ||
Number of properties | Property | 1 | ||
On-campus participating properties | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Provision for uncollectible accounts | $ 800 | ||
Number of properties | Property | 6 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right-of-use assets | $ 278,200 | ||
Operating lease liabilities | $ 277,500 | ||
Corporate Office Headquarters | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of corporate office headquarters leases | lease | 2 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Estimated Useful Lives of Assets (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Minimum | Buildings and improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Minimum | Furniture, fixtures and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Maximum | Buildings and improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
Maximum | Furniture, fixtures and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
On-campus participating properties | Minimum | Leasehold interest | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 25 years |
On-campus participating properties | Maximum | Leasehold interest | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 34 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Potentially Dilutive Securities Not Included in Calculating Diluted Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential dilutive securities (in shares) | 659,149 | 1,034,449 |
Common OP Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential dilutive securities (in shares) | 594,788 | 956,936 |
Preferred OP Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential dilutive securities (in shares) | 64,361 | 77,513 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Elements Used in Calculating Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator – basic and diluted earnings per share: | ||
Net income | $ 31,368 | $ 26,250 |
Net income attributable to noncontrolling interests | (1,728) | (323) |
Net income attributable to common stockholders | 29,640 | 25,927 |
Amount allocated to participating securities | (573) | (506) |
Net income attributable to common unitholders | $ 29,067 | $ 25,421 |
Denominator: | ||
Basic weighted average common shares outstanding (in shares) | 137,101,535 | 136,525,557 |
Diluted weighted average common shares outstanding (in shares) | 138,152,378 | 137,499,963 |
Earnings per share: | ||
Net income attributable to common stockholders - basic (in dollars per share) | $ 0.21 | $ 0.19 |
Net income attributable to common stockholders - diluted (in dollars per share) | $ 0.21 | $ 0.18 |
Unvested restricted stock awards | ||
Denominator: | ||
Unvested restricted stock awards (in shares) | 1,050,843 | 974,406 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Elements Used in Calculating Basic and Diluted Earnings per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator – basic and diluted earnings per unit: | ||
Net income | $ 31,368 | $ 26,250 |
Net income attributable to noncontrolling interests | (1,728) | (323) |
Net income attributable to common unitholders | 29,067 | 25,421 |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | ||
Numerator – basic and diluted earnings per unit: | ||
Net income | 31,368 | 26,250 |
Series A preferred unit distributions | (31) | (31) |
Amount allocated to participating securities | (573) | (506) |
Net income attributable to common unitholders | $ 29,196 | $ 25,599 |
Denominator: | ||
Basic weighted average common units outstanding (in units) | 137,696,323 | 137,482,493 |
Diluted weighted average common units outstanding (in units) | 138,747,166 | 138,456,899 |
Earnings per unit: | ||
Net income attributable to common unitholders - basic (in units) | $ 0.21 | $ 0.19 |
Net income attributable to common unitholders - diluted (in units) | $ 0.21 | $ 0.18 |
Partially owned properties | AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | ||
Numerator – basic and diluted earnings per unit: | ||
Net income attributable to noncontrolling interests | $ (1,568) | $ (114) |
Unvested restricted stock awards | AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | ||
Denominator: | ||
Unvested restricted stock awards (in units) | 1,050,843 | 974,406 |
Acquisitions (Details)
Acquisitions (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($)presale_agreementPropertyBed | Mar. 31, 2019PropertyagreementBed | |
Business Acquisition [Line Items] | ||
Number of presale agreements | agreement | 2 | |
Number of properties, under development | 6 | |
Number of beds | Bed | 109,400 | |
Presale development properties | ||
Business Acquisition [Line Items] | ||
Number of presale agreements | presale_agreement | 2 | |
Number of properties, under development | 2 | |
Number of beds | Bed | 783 | |
Estimated development costs | $ | $ 107.3 | |
In-process development properties | ||
Business Acquisition [Line Items] | ||
Number of presale agreements | agreement | 2 | |
Number of properties, under development | 2 | |
Mezzanine financing | $ | $ 15.6 |
Investments in Owned Properti_3
Investments in Owned Properties (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Real Estate Properties [Line Items] | ||
Owned properties, net | $ 6,694,147 | $ 6,661,034 |
Undeveloped land parcels | 54,500 | 54,500 |
Owned properties | ||
Real Estate Properties [Line Items] | ||
Land | 651,573 | 653,522 |
Buildings and improvements | 6,471,752 | 6,486,106 |
Furniture, fixtures and equipment | 371,556 | 371,429 |
Construction in progress | 397,811 | 302,902 |
Real estate properties gross | 7,892,692 | 7,813,959 |
Less accumulated depreciation | (1,286,673) | (1,230,562) |
Owned properties, net | 6,606,019 | 6,583,397 |
Under Development | ||
Real Estate Properties [Line Items] | ||
Undeveloped land parcels | $ 10,300 | $ 10,300 |
Debt - Summary of Outstanding C
Debt - Summary of Outstanding Consolidated Indebtedness, Including Unamortized Debt Premiums and Discounts (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019USD ($)Property | Dec. 31, 2018USD ($) | Aug. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |||
Secured mortgage, construction and bond debt, net | $ 864,070 | $ 853,084 | |
Total debt, net | 3,109,423 | 3,027,599 | |
Mortgage loans payable | |||
Debt Instrument [Line Items] | |||
Secured mortgage, construction and bond debt, net | $ 27,400 | ||
Unsecured debt | |||
Debt Instrument [Line Items] | |||
Unamortized deferred financing costs | (9,400) | (10,000) | |
Unamortized original issue discount | 1,500 | 1,600 | |
Term loans | |||
Debt Instrument [Line Items] | |||
Unamortized deferred financing costs | (1,100) | (1,200) | |
Wholly-owned properties, net | |||
Debt Instrument [Line Items] | |||
Total debt, net | 770,155 | 758,712 | |
Wholly-owned properties, net | Mortgage loans payable | |||
Debt Instrument [Line Items] | |||
Principal outstanding | 725,606 | 727,163 | |
Unamortized deferred financing costs | (1,961) | (1,757) | |
Unamortized debt premiums | 10,333 | 11,579 | |
Secured mortgage, construction and bond debt, net | 733,978 | 736,985 | |
Wholly-owned properties, net | Construction loans payable | |||
Debt Instrument [Line Items] | |||
Principal outstanding | 36,382 | 22,207 | |
Unamortized deferred financing costs | (205) | (480) | |
On-campus participating properties, net | |||
Debt Instrument [Line Items] | |||
Unamortized deferred financing costs | (499) | (525) | |
Total debt, net | 93,915 | 94,372 | |
On-campus participating properties, net | Mortgage loans payable | |||
Debt Instrument [Line Items] | |||
Principal outstanding | 67,384 | 67,867 | |
On-campus participating properties, net | Bonds payable | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 27,030 | 27,030 | |
In-process development properties | Construction loans payable | |||
Debt Instrument [Line Items] | |||
Number of properties sold | Property | 2 | ||
Unsecured notes, net | |||
Debt Instrument [Line Items] | |||
Unsecured debt | $ 1,589,096 | 1,588,446 | |
Unsecured term loans, net | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 198,857 | 198,769 | |
Unsecured revolving credit facility | |||
Debt Instrument [Line Items] | |||
Unsecured debt | $ 457,400 | $ 387,300 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||||||
Jan. 31, 2019 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 01, 2019 | Feb. 28, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 31, 2017 | |
Debt Instrument [Line Items] | |||||||||
Refinanced debt amount | $ 70,000,000 | ||||||||
Derivative, fixed interest rate | 4.00% | ||||||||
Mortgage loans payable | $ 864,070,000 | $ 853,084,000 | |||||||
Other operating income | $ 3,201,000 | $ 0 | |||||||
Credit Agreement | Unsecured revolving credit facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit, required unused commitment fee per annum (percent) | 0.20% | ||||||||
Weighted average annual interest rate (percent) | 3.69% | ||||||||
Stated percentage | 2.49% | ||||||||
Basis spread on variable rate | 1.00% | ||||||||
Mortgages | |||||||||
Debt Instrument [Line Items] | |||||||||
Mortgage loans payable | $ 27,400,000 | ||||||||
Other operating income | $ 15,300,000 | ||||||||
Unsecured debt | Unsecured revolving credit facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit, required unused commitment fee per annum (percent) | 0.20% | ||||||||
Current borrowing capacity of credit facility | $ 542,600,000 | ||||||||
Unsecured debt | Fifth Amended And Restated Credit Agreement | Unsecured revolving credit facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility | $ 1,000,000,000 | $ 1,000,000,000 | $ 700,000,000 | ||||||
Credit facility, additional borrowing capacity (up to) | $ 200,000,000 | ||||||||
Unsecured debt | Term Loan II Facility | Unsecured revolving credit facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility | $ 200,000,000 | ||||||||
Weighted average annual interest rate (percent) | 3.58% | ||||||||
Stated percentage | 2.48088% | ||||||||
Basis spread on variable rate | 1.10% | ||||||||
Line of credit facility, accordion feature (up to) | $ 100,000,000 |
Debt - Summary of Senior Unsecu
Debt - Summary of Senior Unsecured Notes (Details) - AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Senior notes | |
Debt Instrument [Line Items] | |
Amount | $ 1,600,000,000 |
Original Issue Discount | 3,028,000 |
Senior notes - April 2013 | |
Debt Instrument [Line Items] | |
Amount | $ 400,000,000 |
% of Par Value | 99.659% |
Coupon (percent) | 3.75% |
Yield (percent) | 3.791% |
Original Issue Discount | $ 1,364,000 |
Term (Years) | 10 years |
Senior notes - June 2014 | |
Debt Instrument [Line Items] | |
Amount | $ 400,000,000 |
% of Par Value | 99.861% |
Coupon (percent) | 4.125% |
Yield (percent) | 4.269% |
Original Issue Discount | $ 556,000 |
Term (Years) | 10 years |
Senior notes - September 2015 | |
Debt Instrument [Line Items] | |
Amount | $ 400,000,000 |
% of Par Value | 99.811% |
Coupon (percent) | 3.35% |
Yield (percent) | 3.391% |
Original Issue Discount | $ 756,000 |
Term (Years) | 5 years |
Senior notes - October 2017 | |
Debt Instrument [Line Items] | |
Amount | $ 400,000,000 |
% of Par Value | 99.912% |
Coupon (percent) | 3.625% |
Yield (percent) | 3.635% |
Original Issue Discount | $ 352,000 |
Term (Years) | 10 years |
Stockholders' Equity _ Partne_2
Stockholders' Equity / Partners' Capital (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | May 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
Number of shares in deferred compensation plan (in shares) | 71,432 | 69,603 | |
Treasury Stock | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of shares in deferred compensation plan (in shares) | 71,432 | ||
ATM Equity Program | |||
Schedule of Equity Method Investments [Line Items] | |||
ATM equity program, aggregate offering price authorized (up to $500 million) | $ 500 | $ 500 | |
At The Market Program Expired May 2018, Included In ATM Equity Program | |||
Schedule of Equity Method Investments [Line Items] | |||
ATM equity program, aggregate offering price authorized (up to $500 million) | $ 233 | ||
Non-Qualified Deferred Compensation Plan | Treasury Stock | |||
Schedule of Equity Method Investments [Line Items] | |||
Treasury Stock, Shares, Acquired | 7,332 | ||
Number of shares withdrawn from deferred compensation plan (in shares) | 5,503 |
Noncontrolling Interests - Narr
Noncontrolling Interests - Narrative (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019EntityPropertyagreementshares | Dec. 31, 2018Propertyshares | |
Noncontrolling Interest [Line Items] | ||
Number of third-party joint venture partners (entities) | Entity | 6 | |
Number of properties | 171 | |
Number of presale agreements | agreement | 2 | |
Number of properties, under development | 6 | |
Common OP Unit | ||
Noncontrolling Interest [Line Items] | ||
Conversion of operating partnership units to common stock (in shares) | shares | 42,271 | 412,343 |
Core Transaction | ||
Noncontrolling Interest [Line Items] | ||
Number of joint ventures | 2 | |
In-process development properties | ||
Noncontrolling Interest [Line Items] | ||
Number of presale agreements | agreement | 2 | |
Number of properties, under development | 2 | |
Three off-campus properties | In-process development properties | ||
Noncontrolling Interest [Line Items] | ||
Number of properties | 10 | |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | Operating Partnership | ||
Noncontrolling Interest [Line Items] | ||
Equity interests held by owners of common units and preferred units (percent) | 0.50% | 0.50% |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | Three off-campus properties | ||
Noncontrolling Interest [Line Items] | ||
Number of third-party joint venture partners (entities) | Entity | 4 |
Noncontrolling Interests - Summ
Noncontrolling Interests - Summarized Activity of Redeemable Limited Partners (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Beginning balance | $ 184,446 | |
Distributions to noncontrolling interests - partially owned properties | (3,661) | $ (47) |
Conversion of OP Units into shares of ACC common stock | (251) | (478) |
Ending balance | 186,695 | |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | ||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Beginning balance | 184,446 | |
Distributions to noncontrolling interests - partially owned properties | (3,661) | (47) |
Conversion of OP Units into shares of ACC common stock | (251) | (478) |
Ending balance | 186,695 | |
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | Redeemable noncontrolling interests | ||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Beginning balance | 184,446 | 132,169 |
Net income | 259 | 210 |
Distributions to noncontrolling interests - partially owned properties | (305) | (376) |
Conversion of OP Units into shares of ACC common stock | (252) | (478) |
Adjustments to reflect OP Units at fair value | 2,547 | (4,526) |
Ending balance | $ 186,695 | $ 126,999 |
Incentive Award Plan - Narrativ
Incentive Award Plan - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | May 31, 2018 | |
Restricted stock awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | $ 3.8 | $ 3.3 | |
2018 Incentive Award Plan | Select Employees and Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserved for issuance (in shares) | 3,500,000 |
Incentive Award Plan - Summary
Incentive Award Plan - Summary of Restricted Stock Awards (Details) - Restricted stock awards | 3 Months Ended |
Mar. 31, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance (shares) | 862,680 |
Granted (shares) | 383,087 |
Vested (shares) | (266,556) |
Forfeited (shares) | (5,295) |
Ending balance (shares) | 973,916 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Summary of Outstanding Interest Rate Swap Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Jan. 31, 2019 | |
Derivative [Line Items] | ||
Pay Fixed Rate | 4.00% | |
Current Notional Amount | $ 296,162 | |
Fair Value | $ (8,890) | |
Interest Rate Swap - 2.275% Fixed Rate | ||
Derivative [Line Items] | ||
Effective Date | Feb. 18, 2014 | |
Maturity Date | Feb. 15, 2021 | |
Pay Fixed Rate | 2.275% | |
Receive Floating Rate Index | LIBOR - 1 month | |
Current Notional Amount | $ 13,014 | |
Fair Value | $ (6) | |
Interest Rate Swap - 2.275% Fixed Rate | ||
Derivative [Line Items] | ||
Effective Date | Feb. 18, 2014 | |
Maturity Date | Feb. 15, 2021 | |
Pay Fixed Rate | 2.275% | |
Receive Floating Rate Index | LIBOR - 1 month | |
Current Notional Amount | $ 13,148 | |
Fair Value | $ (6) | |
Interest Rate Swap - 2.7475% Fixed Rate | ||
Derivative [Line Items] | ||
Effective Date | Feb. 1, 2019 | |
Maturity Date | Jan. 16, 2024 | |
Pay Fixed Rate | 2.7475% | |
Receive Floating Rate Index | LIBOR - 1 month | |
Current Notional Amount | $ 70,000 | |
Fair Value | $ (1,919) | |
Interest Rate Swap - 2.8020% Fixed Rate | ||
Derivative [Line Items] | ||
Effective Date | Sep. 30, 2019 | |
Maturity Date | Sep. 30, 2029 | |
Pay Fixed Rate | 2.802% | |
Receive Floating Rate Index | LIBOR - 3 month | |
Current Notional Amount | $ 100,000 | |
Fair Value | $ (3,490) | |
Interest Rate Swap - 2.8025% Fixed Rate | ||
Derivative [Line Items] | ||
Effective Date | Sep. 30, 2019 | |
Maturity Date | Sep. 30, 2029 | |
Pay Fixed Rate | 2.8025% | |
Receive Floating Rate Index | LIBOR - 3 month | |
Current Notional Amount | $ 50,000 | |
Fair Value | $ (1,742) | |
Interest Rate Swap - 2.7990% Fixed Rate | ||
Derivative [Line Items] | ||
Effective Date | Sep. 30, 2019 | |
Maturity Date | Sep. 30, 2029 | |
Pay Fixed Rate | 2.799% | |
Receive Floating Rate Index | LIBOR - 3 month | |
Current Notional Amount | $ 50,000 | |
Fair Value | $ (1,727) |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Fair Value of Derivative Financial Instruments and Classification on Consolidated Balance Sheet (Details) - Designated as hedging instrument - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 0 | $ 101 |
Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 8,890 | 2,287 |
Interest rate swap contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0 | 101 |
Interest rate swap contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 1,931 | 0 |
Forward starting swap contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0 | 0 |
Forward starting swap contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 6,959 | $ 2,287 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Schedule of Effect of Derivative Financial Instruments On The Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative [Line Items] | ||
Amount of (loss) gain recognized in OCI on derivatives | $ (5,896) | $ 363 |
Interest expense presented in the consolidated statements of comprehensive income in which the effects of cash flow hedges are recorded | 27,061 | 23,684 |
Interest Expense | ||
Derivative [Line Items] | ||
Amount of loss reclassified from accumulated OCI into interest expense | $ 102 | $ 102 |
Fair Value Disclosures - Financ
Fair Value Disclosures - Financial Instruments Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2016 |
Assets | |||
Derivative financial instruments | $ 0 | $ 101 | |
Liabilities: | |||
Derivative financial instruments | 8,890 | $ 2,287 | |
Mezzanine: | |||
Redeemable noncontrolling interests (Company)/Redeemable limited partners (Operating Partnership) | 186,695 | 184,446 | |
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | |||
Assets | |||
Derivative financial instruments | 0 | 0 | |
Liabilities: | |||
Derivative financial instruments | 0 | 0 | |
Mezzanine: | |||
Redeemable noncontrolling interests (Company)/Redeemable limited partners (Operating Partnership) | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | |||
Assets | |||
Derivative financial instruments | 0 | 101 | |
Liabilities: | |||
Derivative financial instruments | 8,890 | 2,287 | |
Mezzanine: | |||
Redeemable noncontrolling interests (Company)/Redeemable limited partners (Operating Partnership) | 29,977 | 27,828 | |
Significant Unobservable Inputs (Level 3) | |||
Assets | |||
Derivative financial instruments | 0 | 0 | |
Liabilities: | |||
Derivative financial instruments | 0 | 0 | |
Mezzanine: | |||
Redeemable noncontrolling interests (Company)/Redeemable limited partners (Operating Partnership) | $ 156,718 | $ 156,618 |
Fair Value Disclosures - Estima
Fair Value Disclosures - Estimated Fair Value and Related Carrying Amounts of Mortgage Loans and Bonds Payable (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Estimated Fair Value | ||
Assets: | ||
Loans receivable | $ 50,993 | $ 50,993 |
Liabilities: | ||
Unsecured notes | 1,592,615 | 1,566,900 |
Mortgage loans payable | 737,020 | 668,911 |
Bonds payable | 28,911 | 28,805 |
Carrying Amount | ||
Assets: | ||
Loans receivable | 55,383 | 54,611 |
Liabilities: | ||
Unsecured notes | 1,589,096 | 1,588,446 |
Mortgage loans payable | 760,093 | 693,384 |
Bonds payable | 26,760 | 26,741 |
Owned properties | Mortgage loans payable | ||
Liabilities: | ||
Principal outstanding | 725,606 | 727,163 |
Owned properties | Mortgage loans payable | Variable rate mortgage loans | ||
Liabilities: | ||
Principal outstanding | $ 41,200 | $ 111,400 |
Leases (Details)
Leases (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)agreement | Mar. 31, 2018USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Number ground/facility and office space lease agreements | agreement | 50 | |
Straight line rent expense | $ 2.5 | |
Variable rent expense | 2.6 | |
Capitalized rent cost | 2.5 | |
Right-of-use assets | $ 280 | |
Weighted average incremental borrowing rate | 6.03% | |
Weighted average remaining lease term | 58 years 2 months 1 day | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease terms | 7 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease terms | 102 years | |
Student Lease Property | ||
Lessee, Lease, Description [Line Items] | ||
Lease income | $ 221.7 | $ 201.7 |
Commercial Lease Property | ||
Lessee, Lease, Description [Line Items] | ||
Lease income | $ 3.4 | $ 3.3 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Commitments of Operating Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Operating Lease Liabilities, Payments Due [Abstract] | ||
2019 | $ 8,331 | |
2020 | 11,814 | |
2021 | 16,280 | |
2022 | 18,988 | |
2023 | 19,067 | |
Thereafter | 1,049,874 | |
Total minimum lease payments | 1,124,354 | |
Less imputed interest | (841,804) | |
Total lease liabilities | $ 282,550 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2019 | $ 9,463 | |
2020 | 12,092 | |
2021 | 16,653 | |
2022 | 18,999 | |
2023 | 18,903 | |
Thereafter | 1,042,842 | |
Total minimum lease payments | $ 1,118,952 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 1 Months Ended | 3 Months Ended | |||
Aug. 31, 2013USD ($)extension | Sep. 30, 2019USD ($)agreement | Mar. 31, 2019USD ($)EntityProperty | Mar. 31, 2018USD ($)Property | Sep. 30, 2017Entity | |
Loss Contingencies [Line Items] | |||||
Number of properties | Property | 171 | ||||
Number of properties, under development | Property | 6 | ||||
Number of third-party joint venture partners (entities) | Entity | 6 | ||||
Deferred pre-development costs | $ 8,200,000 | ||||
Alternate Housing Guarantees | |||||
Loss Contingencies [Line Items] | |||||
Guarantee expiration period | 5 days | ||||
Project Cost Guarantees | |||||
Loss Contingencies [Line Items] | |||||
Guarantee expiration period | 1 year | ||||
Third-Party Development Projects | |||||
Loss Contingencies [Line Items] | |||||
Commitment under third-party development project | $ 15,800,000 | ||||
Performance Guarantee | |||||
Loss Contingencies [Line Items] | |||||
Estimate of possible loss | 614,600,000 | ||||
Guarantor obligations, maximum exposure | 2,100,000 | ||||
Core Transaction | |||||
Loss Contingencies [Line Items] | |||||
Asset acquisition, consideration transferred | 154,000,000 | ||||
Disney College Program Phases I-V (ACE) | Performance Guarantee | |||||
Loss Contingencies [Line Items] | |||||
Development guarantee, damages due per bed each day of a delay | 20 | ||||
Guarantor obligations, maximum exposure | 200,000 | ||||
Presale development properties | |||||
Loss Contingencies [Line Items] | |||||
Number of properties, under development | Property | 2 | ||||
Estimated development costs | $ 107,300,000 | ||||
Estimated development costs, remaining obligation to be funded | $ 87,100,000 | ||||
Presale development properties | Scenario, Forecast | |||||
Loss Contingencies [Line Items] | |||||
Number of presale agreements | agreement | 2 | ||||
Estimated development costs | $ 107,300,000 | ||||
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP, L.P. | Core Transaction | Consolidated properties | |||||
Loss Contingencies [Line Items] | |||||
Number of third-party joint venture partners (entities) | Entity | 2 | ||||
Period of option to purchase remaining interest in joint venture | 2 years | ||||
Under Development | |||||
Loss Contingencies [Line Items] | |||||
Number of properties | Property | 2 | ||||
Drexel University Property | |||||
Loss Contingencies [Line Items] | |||||
Lease term | 40 years | ||||
Number of lease renewal options | extension | 3 | ||||
Lease extension period | 10 years | ||||
Commitment to pay real estate transfer taxes, amount (not more than) | $ 1,800,000 | ||||
Real estate transfer taxes paid upon conveyance of land | 600,000 | ||||
Drexel University Property | Maximum | |||||
Loss Contingencies [Line Items] | |||||
Commitment to pay real estate transfer taxes, amount (not more than) | $ 2,400,000 | ||||
Construction Contracts | |||||
Loss Contingencies [Line Items] | |||||
Development projects under construction | $ 446,100,000 |
Segments - Narrative (Details)
Segments - Narrative (Details) | 3 Months Ended |
Mar. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Identified reportable segments (segments) | 4 |
Segments - Schedule of Segment
Segments - Schedule of Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 242,131 | $ 220,409 |
Ground/facility lease expense | (3,549) | (2,842) |
Interest expense, net | (27,061) | (23,684) |
Depreciation and amortization | (69,887) | (66,193) |
Operating expenses | (183,132) | (170,003) |
Total consolidated revenues, including interest income | 243,057 | 221,632 |
Segment operating income before depreciation and amortization | 58,999 | 50,406 |
Provision for real estate impairment | (3,201) | 0 |
Income tax provision | (364) | (281) |
Net income | 31,368 | 26,250 |
Operating segments | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 242,291 | 220,811 |
Segment operating income before depreciation and amortization | 132,364 | 119,404 |
Net income | 31,368 | 26,250 |
Operating segments | Owned properties | ||
Segment Reporting Information [Line Items] | ||
Rental revenues and other income | 225,201 | 206,389 |
Interest income | 119 | 381 |
Total revenues | 225,320 | 206,770 |
Operating expenses before depreciation, amortization, and ground/facility lease expense | (92,169) | (88,060) |
Ground/facility lease expense | (2,667) | (2,047) |
Interest expense, net | (4,763) | (1,629) |
Operating income before depreciation and amortization | 125,721 | 115,034 |
Depreciation and amortization | 65,632 | 61,808 |
Capital expenditures | 115,519 | 134,250 |
Operating segments | On-campus participating properties | ||
Segment Reporting Information [Line Items] | ||
Rental revenues and other income | 11,448 | 10,443 |
Interest income | 41 | 21 |
Total revenues | 11,489 | 10,464 |
Operating expenses before depreciation, amortization, and ground/facility lease expense | (3,957) | (3,425) |
Ground/facility lease expense | (882) | (795) |
Interest expense, net | (1,303) | (1,253) |
Operating income before depreciation and amortization | 5,347 | 4,991 |
Depreciation and amortization | 2,056 | 1,942 |
Capital expenditures | 230 | 1,146 |
Operating segments | Third-party development services | ||
Segment Reporting Information [Line Items] | ||
Operating income before depreciation and amortization | 1,285 | (1,359) |
Development and construction management fees | 3,171 | 846 |
Operating expenses | (1,886) | (2,205) |
Operating segments | Property management services | ||
Segment Reporting Information [Line Items] | ||
Operating income before depreciation and amortization | 11 | 738 |
Operating expenses | (2,300) | (1,993) |
Unallocated | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 766 | 821 |
Operating expenses | (27,544) | (26,680) |
Property management fees from external customers | Operating segments | Property management services | ||
Segment Reporting Information [Line Items] | ||
Total revenues | $ 2,311 | $ 2,731 |
Subsequent Events (Details)
Subsequent Events (Details) | May 01, 2019$ / shares |
Subsequent Event | Dividend Declared | |
Subsequent Event [Line Items] | |
Distributions declared per common unit (in dollars per unit) | $ 0.47 |