Financial Highlights S-1 Consolidated Balance Sheets S-2 Consolidated Statements of Comprehensive Income S-3 Consolidated Statements of Funds from Operations ("FFO") S-5 Owned Properties Results of Operations S-7 Same Store Owned Properties Operating Expenses S-8 Seasonality of Operations S-9 Seasonality of Operations - Build-up to 2022 Same Store Grouping S-10 Owned Development Update S-11 Third-Party Development Update S-12 Management Services Update S-13 Capital Structure S-14 Interest Coverage S-15 Current Development Pipeline Funding Plan (2022 - 2023) S-16 Outlook - Summary (Full Year and Q1 2022) S-17 2022 Outlook - Detail S-18 Detail of Property Groupings S-19 Definitions S-20 Investor Information S-22 Table of Contents Q4 Supplemental Package February 22, 2022 Exhibit 99.2
Financial Highlights ($ in thousands, except share and per share data) S-1 Operating Data Three Months Ended December 31, Year Ended December 31, 2021 2020 $ Change % Change 2021 2020 $ Change % Change Total revenues $ 272,289 $ 232,958 $ 39,331 16.9% $ 942,409 $ 870,584 $ 71,825 8.3% Operating income 73,387 51,111 22,276 43.6% 156,560 187,344 (30,784) (16.4%) Net income attributable to ACC 40,712 24,807 15,905 64.1% 35,489 72,803 (37,314) (51.3%) Net income per share - basic and diluted 0.29 0.18 0.24 0.51 Funds From Operations - ("FFO") 1 107,539 89,900 17,639 19.6% 300,794 281,088 19,706 7.0% FFO per share - diluted 1 0.76 0.65 0.11 16.9% 2.15 2.02 0.13 6.4% Funds From Operations - Modified ("FFOM") 1 105,405 81,773 23,632 28.9% 300,553 275,495 25,058 9.1% FFOM per share - diluted 1 0.75 0.59 0.16 27.1% 2.14 1.98 0.16 8.1% Market Capitalization and Unsecured Notes Covenants 2 December 31, 2021 December 31, 2020 Debt to total market capitalization 30.5% 37.8% Net debt to EBITDA 3 7.3x 8.3x Unencumbered asset value to total asset value 89.1% 86.5% Total debt to total asset value 39.1% 41.2% Secured debt to total asset value 5.9% 7.4% Unencumbered asset value to unsecured debt 268.9% 255.3% Interest coverage 3 3.5x 3.5x 1. Refer to page S-5 for a reconciliation to net income, the most directly comparable GAAP measure. 2. Refer to the definitions outlined on pages S-20 and S-21 for detailed definitions of terms appearing on this page. 3. Refer to calculations on page S-15, including a reconciliation to net income and interest expense, the most directly comparable GAAP measures.
Consolidated Balance Sheets ($ in thousands) S-2 December 31, 2021 December 31, 2020 (unaudited) Assets Investments in real estate Owned properties, net $ 6,676,811 $ 6,721,744 On-campus participating properties, net 65,559 69,281 Investments in real estate, net 6,742,370 6,791,025 Cash and cash equivalents 120,351 54,017 Restricted cash 14,326 19,955 Student contracts receivable, net 14,187 11,090 Operating lease right of use assets 1 456,239 457,573 Other assets 1 227,113 197,500 Total assets $ 7,574,586 $ 7,531,160 Liabilities and equity Liabilities Secured mortgage and bond debt, net $ 535,836 $ 646,827 Unsecured notes, net 2,773,855 2,375,603 Unsecured term loans, net 199,824 199,473 Unsecured revolving credit facility — 371,100 Accounts payable and accrued expenses 93,067 85,070 Operating lease liabilities 2 496,821 486,631 Other liabilities 2 173,898 185,352 Total liabilities 4,273,301 4,350,056 Redeemable noncontrolling interests 31,858 24,567 Equity American Campus Communities, Inc. and Subsidiaries stockholders' equity Common stock 1,391 1,375 Additional paid in capital 4,694,242 4,472,170 Common stock held in rabbi trust (3,943) (3,951) Accumulated earnings and dividends (1,559,765) (1,332,689) Accumulated other comprehensive loss (14,547) (22,777) Total American Campus Communities, Inc. and 3,117,378 3,114,128 Subsidiaries stockholders' equity Noncontrolling interests - partially owned properties 152,049 42,409 Total equity 3,269,427 3,156,537 Total liabilities and equity $ 7,574,586 $ 7,531,160 1. For purposes of calculating net asset value ("NAV") at December 31, 2021, the company excludes other assets of approximately $7.9 million related to net deferred financing costs on its revolving credit facility and the net value of in-place leases, as well as operating lease right of use assets disclosed above. 2. For purposes of calculating NAV at December 31, 2021, the company excludes other liabilities of approximately $54.1 million related to deferred revenue and fee income, as well as operating lease liabilities disclosed above.
Consolidated Statements of Comprehensive Income ($ in thousands, except share and per share data) S-3 Three Months Ended December 31, Year Ended December 31, 2021 2020 $ Change 2021 2020 $ Change Revenues (unaudited) (unaudited) Owned properties $ 251,572 $ 218,068 $ 33,504 $ 889,052 $ 820,699 $ 68,353 On-campus participating properties 10,961 9,710 1,251 31,207 29,906 1,301 Third-party development services 6,428 2,012 4,416 10,191 7,543 2,648 Third-party management services 3,328 3,168 160 11,959 12,436 (477) Total revenues 272,289 232,958 39,331 942,409 870,584 71,825 Operating expenses (income) Owned properties 100,778 93,713 7,065 407,648 378,454 29,194 On-campus participating properties 3,644 3,164 480 14,333 13,521 812 Third-party development and management services 5,236 5,455 (219) 20,613 21,700 (1,087) General and administrative 1 11,922 7,211 4,711 45,452 35,774 9,678 Depreciation and amortization 69,294 67,724 1,570 275,597 267,703 7,894 Ground/facility leases 5,528 3,480 2,048 17,673 13,513 4,160 Gain from disposition of real estate — — — — (48,525) 48,525 Other operating expenses 2 2,500 1,100 1,400 4,533 1,100 3,433 Total operating expenses 198,902 181,847 17,055 785,849 683,240 102,609 Operating income 73,387 51,111 22,276 156,560 187,344 (30,784) Nonoperating income (expenses) Interest income 415 363 52 1,374 2,939 (1,565) Interest expense (30,305) (28,500) (1,805) (117,793) (112,507) (5,286) Amortization of deferred financing costs (1,617) (1,368) (249) (5,824) (5,259) (565) Loss from extinguishment of debt 3 — — — — (4,827) 4,827 Other nonoperating income 4 171 3,243 (3,072) 328 3,507 (3,179) Total nonoperating expenses (31,336) (26,262) (5,074) (121,915) (116,147) (5,768) Income before income taxes 42,051 24,849 17,202 34,645 71,197 (36,552) Income tax provision (340) (216) (124) (1,361) (1,349) (12) Net income 41,711 24,633 17,078 33,284 69,848 (36,564) Net (income) loss attributable to noncontrolling interests (999) 174 (1,173) 2,205 2,955 (750) Net income attributable to ACC, Inc. and $ 40,712 $ 24,807 $ 15,905 $ 35,489 $ 72,803 $ (37,314) Subsidiaries common stockholders Other comprehensive income (loss) Change in fair value of interest rate swaps and other 2,689 1,837 852 8,230 (5,831) 14,061 Comprehensive income $ 43,401 $ 26,644 $ 16,757 $ 43,719 $ 66,972 $ (23,253) Net income per share attributable to ACC, Inc. and Subsidiaries common stockholders Basic and diluted $ 0.29 $ 0.18 $ 0.24 $ 0.51 Weighted-average common shares outstanding Basic 139,156,803 137,632,091 138,503,705 137,588,964 Diluted 140,273,133 138,725,378 139,703,635 138,710,430 Refer to the next page for footnote explanations.
Consolidated Statements of Comprehensive Income ($ in thousands, except share and per share data) S-4 1. The three months ended December 31, 2021 amount includes $0.6 million in consulting, legal, and other related costs incurred in relation to stockholder activism activities in preparation for the company's annual stockholders' meeting. The three months ended December 31, 2020 amount includes $0.2 million in consulting, legal, and other related costs incurred in relation to stockholder activism activities in preparation for the company's annual stockholders' meeting. The year ended December 31, 2021 amount includes $2.6 million in accelerated amortization of unvested restricted stock awards due to the retirement of the company's President in August 2021 and $1.6 million in consulting, legal, and other related costs incurred in relation to stockholder activism activities in preparation for the company's annual stockholders' meeting. The year ended December 31, 2020 amount includes $0.2 million in consulting, legal, and other related costs incurred in relation to stockholder activism activities in preparation for the company's annual stockholders' meeting. 2. The three months ended December 31, 2021 amount includes a $2.5 million charitable donation made to Arizona State University (ASU) in connection with a joint venture transaction. The three months and year ended December 31, 2020 amount includes $1.1 million related to the settlement of a litigation matter. The year ended December 31, 2021 amount includes the charitable donation made to ASU disclosed above and $2.0 million related to the settlement of a litigation matter. 3. The year ended December 31, 2020 amount represents the loss associated with the January 2020 redemption of the company's $400 million 3.35% Senior Notes originally scheduled to mature in October 2020. 4. The three months and year ended December 31, 2020, include a $2.1 million gain in connection with the early repayment of a loan receivable and a $1.1 million gain related to the settlement of a litigation matter.
Consolidated Statements of Funds from Operations ("FFO") (Unaudited, $ in thousands, except share and per share data) S-5 Three Months Ended December 31, Year Ended December 31, 2021 2020 $ Change 2021 2020 $ Change Net income attributable to ACC, Inc. and Subsidiaries common stockholders $ 40,712 $ 24,807 $ 15,905 $ 35,489 $ 72,803 $ (37,314) Noncontrolling interests' share of net income (loss) 999 (174) 1,173 (2,205) (2,955) 750 Joint Venture ("JV") partners' share of FFO JV partners' share of net (income) loss (848) 272 (1,120) 2,382 3,259 (877) JV partners' share of depreciation and amortization (1,901) (1,911) 10 (7,598) (7,747) 149 (2,749) (1,639) (1,110) (5,216) (4,488) (728) Gain from disposition of real estate — — — — (48,525) 48,525 Total depreciation and amortization 69,294 67,724 1,570 275,597 267,703 7,894 Corporate depreciation 1 (717) (818) 101 (2,871) (3,450) 579 FFO attributable to common stockholders and OP unitholders 107,539 89,900 17,639 300,794 281,088 19,706 Elimination of operations of on-campus participating properties ("OCPPs") Net income from OCPPs (4,561) (3,510) (1,051) (4,922) (3,716) (1,206) Amortization of investment in OCPPs (1,989) (2,050) 61 (8,039) (8,015) (24) 100,989 84,340 16,649 287,833 269,357 18,476 Modifications to reflect operational performance OCPPs Our share of net cashflow 2 392 (273) 665 2,026 1,359 667 Management fees and other 880 727 153 2,015 1,873 142 Contribution from OCPPs 1,272 454 818 4,041 3,232 809 Elimination of loss from extinguishment of debt 3 — — — — 4,827 (4,827) Elimination of gain from early repayment of loan receivable — (2,136) 2,136 — (2,136) 2,136 Executive retirement charges 4 — — — 2,588 — 2,588 Elimination of charitable donation 5 2,500 — 2,500 2,500 — 2,500 Elimination of litigation settlement (gain) expense 6 — (1,100) 1,100 2,033 — 2,033 Stockholder engagement and other proxy advisory costs 7 644 215 429 1,558 215 1,343 Funds from operations-modified ("FFOM") attributable to $ 105,405 $ 81,773 $ 23,632 $ 300,553 $ 275,495 $ 25,058 common stockholders and OP unitholders FFO per share - diluted $ 0.76 $ 0.65 $ 2.15 $ 2.02 FFOM per share - diluted $ 0.75 $ 0.59 $ 2.14 $ 1.98 Weighted-average common shares outstanding - diluted 140,776,850 139,229,095 140,207,352 139,214,147 Refer to the next page for footnote explanations.
Consolidated Statements of Funds from Operations ("FFO") (Unaudited, $ in thousands, except share and per share data) 1. Represents depreciation on corporate assets not added back for purposes of calculating FFO. 2. 50% of the properties’ net cash available for distribution after payment of operating expenses, debt service (including repayment of principal) and capital expenditures which is included in ground/facility leases expense in the accompanying consolidated statements of comprehensive income (refer to page S-3). During the three months ended December 31, 2020, the company waived its right to one property's 50% share of the net cash flow for the 2019-2020 academic year, which resulted in a $0.6 million reversal of contribution from OCPPs. 3. Represents the loss associated with the January 2020 redemption of the company's $400 million 3.35% Senior Notes originally scheduled to mature in October 2020. 4. Represents accelerated amortization of unvested restricted stock awards due to the retirement of the company's President in August 2021, which is included in general and administrative expenses in the accompanying consolidated statements of comprehensive income. 5. Represents a charitable donation to ASU in connection with the closing of a joint venture transaction in December 2021, which is included in other operating expenses in the accompanying consolidated statements of comprehensive income. 6. Represents expenses or gains associated with the settlement of litigation matters, which are included in other operating expenses and other nonoperating income, respectively, in the accompanying consolidated statements of comprehensive income. 7. Represents consulting, legal, and other related costs incurred in relation to stockholder activism activities in preparation for the company’s 2021 and 2022 annual stockholders' meetings, which are included in general and administrative expenses in the accompanying consolidated statements of comprehensive income. S-6
Owned Properties Results of Operations 1 ($ in thousands) S-7 Three Months Ended December 31, Year Ended December 31, 2021 2020 $ Change % Change 2021 2020 $ Change % Change Owned properties revenues Same store properties $ 236,722 $ 214,721 $ 22,001 10.2% $ 854,933 $ 813,182 $ 41,751 5.1% New properties 14,850 3,347 11,503 34,119 4,816 29,303 Sold properties and other 2 — — — — 2,701 (2,701) Total revenues $ 251,572 $ 218,068 $ 33,504 15.4% $ 889,052 $ 820,699 $ 68,353 8.3% Owned properties operating expenses Same store properties 3 $ 94,996 $ 91,290 $ 3,706 4.1% $ 390,587 $ 371,732 $ 18,855 5.1% New properties 5,715 2,342 3,373 16,787 5,341 11,446 Sold properties and other 2 67 81 (14) 274 1,381 (1,107) Total operating expenses $ 100,778 $ 93,713 $ 7,065 7.5% $ 407,648 $ 378,454 $ 29,194 7.7% Owned properties net operating income (loss) Same store properties $ 141,726 $ 123,431 $ 18,295 14.8% $ 464,346 $ 441,450 $ 22,896 5.2% New properties 9,135 1,005 8,130 17,332 (525) 17,857 Sold properties and other 2 (67) (81) 14 (274) 1,320 (1,594) Total net operating income $ 150,794 $ 124,355 $ 26,439 21.3% $ 481,404 $ 442,245 $ 39,159 8.9% 1. Refer to page S-19 for detail of our store groupings. 2. Includes one property sold in 2020, as well as professional fees related to the operation of consolidated joint ventures that are included in owned properties operating expenses in the accompanying consolidated statements of comprehensive income (refer to page S-3). Does not include the allocation of payroll and other administrative costs related to corporate management and oversight. 3. Refer to page S-8 for detail of same store operating expenses.
Same Store Owned Properties Operating Expenses 1 2 ($ in thousands, except per bed amounts) S-8 Three Months Ended December 31, 2021 2020 Total Per Bed $ Change From Prior Year % Change From Prior Year % of Total Operating Expenses Total Per Bed % of Total Operating Expenses Property taxes $ 20,765 $ 218 $ (2,265) (9.8%) 21% $ 23,030 $ 241 25% General & administrative and other 20,144 211 2,165 12.0% 21% 17,979 189 20% Payroll 17,631 185 (1,150) (6.1%) 19% 18,781 197 21% Utilities 19,759 207 1,449 7.9% 21% 18,310 192 20% Repairs and maintenance 8,454 89 1,479 21.2% 9% 6,975 73 8% Marketing 4,512 47 1,415 45.7% 5% 3,097 32 3% Insurance 3,731 39 613 19.7% 4% 3,118 33 3% Total same store owned operating expenses $ 94,996 $ 996 $ 3,706 4.1 % 100 % $ 91,290 $ 957 100 % Same store owned beds 95,365 Year Ended December 31, 2021 2020 Total Per Bed $ Change From Prior Year % Change From Prior Year % of Total Operating Expenses Total Per Bed % of Total Operating Expenses Property taxes $ 89,237 $ 936 $ (1,211) (1.3%) 22% $ 90,448 $ 947 25% General & administrative and other 77,343 811 3,803 5.2% 20% 73,540 771 20% Payroll 75,747 794 829 1.1% 19% 74,918 786 20% Utilities 74,083 777 2,987 4.2% 19% 71,096 746 19% Repairs and maintenance 45,198 474 7,669 20.4% 12% 37,529 394 10% Marketing 15,061 158 2,513 20.0% 4% 12,548 132 3% Insurance 13,918 146 2,265 19.4% 4% 11,653 122 3% Total same store owned operating expenses $ 390,587 $ 4,096 $ 18,855 5.1 % 100 % $ 371,732 $ 3,898 100 % Same store owned beds 95,365 1. Refer to the definition of operating expenses on page S-21 for a detailed description of items included in the various expense categories. 2. Refer to page S-19 for detail of our same store groupings.
Seasonality of Operations 1 ($ in thousands, except per bed amounts) S-9 Three Months Ended Total/Weighted Average- December 31, 2020 March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 Last Twelve Months 2021 Same Store Properties Average number of owned beds 95,365 95,365 95,365 95,365 95,365 95,365 Average physical occupancy for the quarter 90.5% 90.3% 83.9% 86.4% 96.0% 89.2% Rental revenue per occupied bed per month 2 $ 786 $ 786 $ 768 $ 775 $ 810 $ 786 Rental revenue $ 203,449 $ 203,038 $ 184,244 $ 191,476 $ 222,466 $ 801,224 Other income 3 11,272 12,094 11,464 15,895 14,256 53,709 Total revenue $ 214,721 $ 215,132 $ 195,708 $ 207,371 $ 236,722 $ 854,933 Property operating expenses 91,290 91,516 92,457 111,618 94,996 390,587 Net operating income $ 123,431 $ 123,616 $ 103,251 $ 95,753 $ 141,726 $ 464,346 Operating margin 57.5% 57.5% 52.8% 46.2% 59.9% 54.3% 2021 New Properties Average number of owned beds 2,496 3,480 4,494 6,153 6,153 5,070 Average physical occupancy for the quarter 14.5% 14.5% 15.9% 70.2% 86.6% 53.6% Rental revenue per occupied bed per month 2 $ 1,200 $ 1,343 $ 1,179 $ 859 $ 892 $ 919 Rental revenue $ 1,303 $ 2,033 $ 2,527 $ 11,133 $ 14,256 $ 29,949 Other income 3 2,044 1,279 1,388 909 594 4,170 Total revenue $ 3,347 $ 3,312 $ 3,915 $ 12,042 $ 14,850 $ 34,119 Property operating expenses 2,342 2,404 3,175 5,493 5,715 16,787 Net operating income $ 1,005 $ 908 $ 740 $ 6,549 $ 9,135 $ 17,332 Operating margin 30.0% 27.4% 18.9% 54.4% 61.5% 50.8% ALL PROPERTIES Average number of owned beds 97,861 98,845 99,859 101,518 101,518 100,435 Average physical occupancy for the quarter 88.6% 87.6% 80.8% 85.5% 95.4% 87.4% Rental revenue per occupied bed per month 2 $ 787 $ 789 $ 772 $ 778 $ 815 $ 790 Rental revenue $ 204,752 $ 205,071 $ 186,771 $ 202,609 $ 236,722 $ 831,173 Other income 3 13,316 13,373 12,852 16,804 14,850 57,879 Total revenue $ 218,068 $ 218,444 $ 199,623 $ 219,413 $ 251,572 $ 889,052 Property operating expenses 93,632 93,920 95,632 117,111 100,711 407,374 Net operating income $ 124,436 $ 124,524 $ 103,991 $ 102,302 $ 150,861 $ 481,678 Operating margin 57.1% 57.0% 52.1% 46.6% 60.0% 54.2% Sold properties and other 4 Total revenue $ — $ — $ — $ — $ — $ — Property operating expenses 81 71 71 65 67 274 Net operating loss $ (81) $ (71) $ (71) $ (65) $ (67) $ (274) 1. Refer to page S-19 for detail of our store groupings. 2. Rental revenue per occupied bed per month is calculated based upon our net student rental revenue earned during the respective quarter divided by average monthly occupied beds over the periods presented. 3. Other income is all income other than net student rent. This includes, but is not limited to, utility income, damages, parking income, summer conference rent, application and administration fees, income from retail tenants, and the provision for uncollectible accounts. 4. Includes costs related to the operation of consolidated joint ventures as noted on page S-7.
Seasonality of Operations - Build-up to 2022 Same Store Grouping 1 ($ in thousands, except per bed amounts) S-10 Three Months Ended Total/Weighted Average- March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 Last Twelve Months 2021 Same Store Properties 2 Average number of owned beds 95,365 95,365 95,365 95,365 95,365 Average physical occupancy for the quarter 90.3% 83.9% 86.4% 96.0% 89.2% Rental revenue per occupied bed per month $ 786 $ 768 $ 775 $ 810 $ 786 Rental revenue $ 203,038 $ 184,244 $ 191,476 $ 222,466 $ 801,224 Other income 3 12,094 11,464 15,895 14,256 53,709 Total revenue $ 215,132 $ 195,708 $ 207,371 $ 236,722 $ 854,933 Property operating expenses 91,516 92,457 111,618 94,996 390,587 Net operating income $ 123,616 $ 103,251 $ 95,753 $ 141,726 $ 464,346 Operating margin 57.5% 52.8% 46.2% 59.9% 54.3% 2022 New Same Store Properties 4 Average number of owned beds 869 869 869 869 869 Average physical occupancy for the quarter 52.6% 46.3% 72.0% 92.3% 65.8% Rental revenue per occupied bed per month $ 1,394 $ 1,418 $ 1,316 $ 1,466 $ 1,402 Rental revenue $ 1,912 $ 1,711 $ 2,471 $ 3,528 $ 9,622 Other income 3 745 820 286 15 1,866 Total revenue $ 2,657 $ 2,531 $ 2,757 $ 3,543 $ 11,488 Property operating expenses 887 777 1,014 1,123 3,801 Net operating income $ 1,770 $ 1,754 $ 1,743 $ 2,420 $ 7,687 Operating margin 66.6% 69.3% 63.2% 68.3% 66.9% 2022 SAME STORE PROPERTIES Average number of owned beds 96,234 96,234 96,234 96,234 96,234 Average physical occupancy for the quarter 89.9% 83.6% 86.3% 96.0% 89.0% Rental revenue per occupied bed per month $ 790 $ 770 $ 778 $ 815 $ 789 Rental revenue $ 204,950 $ 185,955 $ 193,947 $ 225,994 $ 810,846 Other income 3 12,839 12,284 16,181 14,271 55,575 Total revenue $ 217,789 $ 198,239 $ 210,128 $ 240,265 $ 866,421 Property operating expenses 92,403 93,234 112,632 96,119 394,388 Net operating income $ 125,386 $ 105,005 $ 97,496 $ 144,146 $ 472,033 Operating margin 57.6% 53.0% 46.4% 60.0% 54.5% 1. Refer to page S-19 for detail of same store groupings. 2. This section presents operating results for the 2021 same store properties from page S-9. 3. Other income is all income other than net student rent. This includes, but is not limited to, utility income, damages, parking income, summer conference rent, application and administration fees, income from retail tenants, and the provision for uncollectible accounts. 4. Includes two development properties opened in 2020 that will become part of the same store grouping for 2022.
Owned Development Update ($ in thousands) S-11 1. Beds and total project costs per phase amounts may vary from those previously disclosed due to early deliveries of beds at certain phases. 2. In certain instances at ACE properties, the company agrees to construct spaces within the property that will ultimately be owned, managed, and funded by the universities or ground lessors. Such spaces include but are not limited to dining, childcare, retail, academic, and office facilities. Total and Estimated Project Cost excludes the costs of the construction of such facilities, as they will be reimbursed by the ground lessors. 3. Does not include land parcels in thirteen markets totaling $90.8 million. 4. Phase VII, with estimated project costs of $81.4 million and 1,472 beds, is scheduled for occupancy in May 2022. Phase VIII, with estimated project costs of $41.4 million and 736 beds, is scheduled for occupancy in August 2022. 5. Phase IX, with estimated project costs of $81.5 million and 1,473 beds, is scheduled for occupancy in January 2023. Phase X, with estimated project costs of $41.2 million and 736 beds, is scheduled for occupancy in May 2023. OWNED DEVELOPMENT PROJECTS UNDER CONSTRUCTION 3 University / Market Served Project Location Project Type Beds Estimated Project Cost 2 Total Costs Incurred as of December 31, 2021 Scheduled Occupancy Walt Disney World® Resort Disney College Program Phases VII-VIII 4 Orlando, FL ACE 2,208 $ 122,800 $ 113,587 May & Aug 2022 Disney College Program Phases IX-X 5 Orlando, FL ACE 2,209 122,700 99,164 Jan & May 2023 4,417 $ 245,500 $ 212,751 DISNEY COLLEGE PROGRAM COMPLETED PHASES University / Market Served Project Location Project Type Beds 1 Total Project Cost 1 2 Opened for Occupancy Walt Disney World® Resort Disney College Program Phases I - II Orlando, FL ACE 1,627 $ 108,500 May & Aug 2020 Disney College Program Phase III Orlando, FL ACE 984 54,400 January 2021 Disney College Program Phase IV Orlando, FL ACE 1,521 84,500 May 2021 Disney College Program Phase V Orlando, FL ACE 1,152 71,900 July 2021 Disney College Program Phase VI Orlando, FL ACE 739 49,800 January 2022 6,023 $ 369,100
Third-Party Development Update ($ in thousands) S-12 Three Months Ended December 31, Year ended December 31, 2021 2021 2020 $ Change 2021 2020 $ Change Development services revenue 1 $ 6,428 $ 2,012 $ 4,416 $ 10,191 $ 7,543 $ 2,648 1. The year ended December 31, 2021 and 2020 amounts include $1.1 million and $2.3 million, respectively, of revenue earned related to cost savings on previously completed projects. 2. Construction commenced in January 2022. 3. These awards relate to speculative development projects that are subject to final determination of feasibility, negotiation, final award, procurement rules and other applicable law, execution and closing of definitive agreements on terms acceptable to the company, and fluctuations in the construction and financing markets. Anticipated commencement and fees are dependent upon the availability of project financing, which is affected by current capital market conditions. Anticipated commencement and targeted completion dates for certain projects have been delayed due to disruption associated with COVID-19. 4. These projects include awards to develop multiple phases to be completed over several years. The scope, transaction structure, feasibility, fees, and timing will be determined on a phase by phase basis. CONTRACTED PROJECTS IN PROGRESS University Served Project Location Beds Total Fees Fees Earned as of December 31, 2021 Fees Earned in Current Year Remaining Fees as of December 31, 2021 Scheduled Completion Georgetown University Capitol Campus Housing Washington, D.C. 476 $ 3,000 $ 2,352 $ 601 $ 648 August 2022 Concordia University Phase II Austin, TX 235 1,300 959 959 341 August 2022 Princeton University Lake Campus Graduate Housing Princeton, NJ 604 6,000 2,537 2,537 3,463 August 2023 Drexel University Kelly Hall Renovation Philadelphia, PA 410 1,900 1,017 1,017 883 August 2023 University of California, Irvine Phase V Irvine, CA 1,077 5,700 1,967 1,967 3,733 September 2023 Massachusetts Institute of Technology Family & Graduate Housing 2 Cambridge, MA 676 9,800 — — 9,800 August 2024 3,478 $ 27,700 $ 8,832 $ 7,081 $ 18,868 ON-CAMPUS AWARD PIPELINE 3 University Served Project Location Anticipated Financing Structure Anticipated Commencement Targeted Completion Estimated Fees University of Texas at Austin Graduate Housing Austin, TX Third-party Q2 2022 Fall 2024 $4,500 Emory University Graduate Housing Atlanta, GA Third-party 2022 / 2023 Fall 2024 / 2025 $2,600 University of California, Berkeley Upper Hearst Development for the Goldman School of Public Policy Berkeley, CA Third-party 2022 / 2023 Summer 2024 / 2025 $3,000 Albany Village Graduate Housing Berkeley, CA ACE 2022 Fall 2024 N/A Master Development - future phases 4 Berkeley, CA TBD TBD TBD TBD Purdue University Purdue University Research Foundation West Lafayette, IN Third-party 2022 / 2023 Fall 2024 / 2025 $3,900 Northeastern University Phase II Boston, MA ACE Q1 / Q2 2023 Fall 2025 N/A University of California, Riverside Master Development - future phases 4 Riverside, CA TBD TBD TBD TBD Virginia Commonwealth University Honors College Housing Richmond, VA TBD TBD TBD TBD West Virginia University Master Development 4 Morgantown, WV TBD TBD TBD TBD
Management Services Update ($ in thousands) S-13 Three Months Ended December 31, Year Ended December 31, 2021 2020 $ Change 2021 2020 $ Change Management services revenue $ 3,328 $ 3,168 $ 160 $ 11,959 $ 12,436 $ (477) 1. Stabilized annual fees are dependent upon the achievement of anticipated occupancy levels. 2. Represents legacy housing for Disney College Program participants, which has been replaced by the various phases of the company's Walt Disney World® Resort owned development project (see page S-11). NEW / PENDING MANAGEMENT CONTRACTS University Served Project Location Approximate Beds Stabilized Annual Fees 1 Actual or Anticipated Commencement University of North Carolina, Chapel Hill Granville Towers Chapel Hill, NC 1,315 $ 490 February 2021 University of California, Riverside North District Phase I Riverside, CA 1,506 540 September 2021 Ferris State University Campus Creek Cottages Big Rapids, MI 368 50 November 2021 Campus Creek Townhomes Big Rapids, MI 312 60 November 2021 Morgan State University Morgan View Phase II Baltimore, MD 670 200 August 2022 Princeton University Lake Campus Graduate Housing Princeton, NJ 604 190 August 2023 University of California, Irvine Phase V Irvine, CA 1,077 440 September 2023 5,852 $ 1,970 DISCONTINUED MANAGEMENT CONTRACTS University Served Project Location Beds 2021 Fee Contribution Prior to Termination Discontinued As Of University of California, Berkeley Garden Village Berkeley, CA 236 $ 50 April 2021 Clark Atlanta University CAU Suites Atlanta, GA 598 60 July 2021 Heritage Commons Atlanta, GA 455 60 July 2021 Cleveland State University Euclid Commons Cleveland, OH 601 130 July 2021 Fenn Tower Cleveland, OH 438 40 July 2021 Texas A&M University The Cambridge @ College Station College Station, TX 552 30 October 2021 Disney College Program 2 Various Orlando, FL 3,771 200 March 2022 Columbus State University Independence Place Columbus, GA 555 150 April 2022 7,206 $ 720
1. Refer to the definitions outlined on pages S-20 and S-21 for detailed definitions of terms appearing on this page. 2. Excludes net unamortized debt premiums related to mortgage loans assumed in connection with acquisitions of $0.4 million, unamortized original issue discount on unsecured notes of $5.3 million, and unamortized deferred financing costs of $22.1 million. 3. Based on share price of $57.29 and fully diluted share count of 140,771,728 as of December 31, 2021. Assumes conversion of 503,717 common and preferred Operating Partnership units and 1,111,098 unvested restricted stock awards. 4. Refer to calculations on page S-15, including a reconciliation to net income and interest expense, the most directly comparable GAAP measures. 5. Excludes accumulated depreciation of $2.0 billion, receivables and intangible assets, net of accumulated amortization, of $86.6 million, and lease-related right of use assets of $456.2 million. 6. Includes $330.0 million of mortgage debt related to the ACC / Allianz joint venture of which the company has a 55% interest. 7. Including the amortization of net debt premiums related to mortgage loans assumed in connection with property acquisitions, the effective interest rate for fixed rate mortgage loans is 4.1%. 8. The company's variable rate debt consists of the unsecured revolving credit facility and $0.9 million of mortgage debt at one of our on-campus participating properties. Capital Structure as of December 31, 2021 1 ($ in millions, except per share data) S-14 Market Capitalization & Unsecured Notes Covenants Debt Maturity Schedule Total Debt ² $ 3,537 Total Equity Market Value ³ 8,065 Total Market Capitalization 11,602 Debt to Total Market Capitalization 30.5% Net Debt to EBITDA ⁴ 7.3x Total Asset Value ⁵ $ 9,052 Unencumbered Asset Value 8,066 Unencumbered Asset Value to Total Asset Value 89.1% Requirement Current Ratio Total Debt to Total Asset Value ≤ 60% 39.1% Secured Debt to Total Asset Value ≤ 40% 5.9% Unencumbered Asset Value to Unsecured Debt > 150% 268.9% Interest Coverage ⁴ > 1.5x 3.5x Principal Outstanding ² Weighted Average Interest Rate Average Term To Maturity Mortgage Loans ⁶ $ 461 4.1% 7 5.3 Yrs Unsecured Revolving Credit Facility — —% 3.4 Yrs Unsecured Term Loan 200 2.5% .5 Yrs Unsecured Notes 2,800 3.5% 5.5 Yrs On-Campus Participating Properties 76 4.2% 14.4 Yrs Total/Weighted Average $ 3,537 3.5% 5.4 Yrs Variable Rate Debt as % of Total Debt 8 0.1 % Weighted Average Interest Rate Of Debt Maturing Each Year Fixed Rate Debt 2.5% 3.8% 4.2% N/A 3.7% 3.6% 4.1% 2.3% 2.9% 3.9% Total Debt 2.5% 3.8% 4.2% 7.6% 3.7% 3.6% 4.0% 2.3% 2.9% 3.9% $400 $400 $400 $400 $400 $400 $400 $200 $131 $330 $6 $6 $25 $39 Unsecured Notes Unsecured Term Loans Mortgage Loans Unsecured Revolving Credit Facility On-Campus Participating Properties 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031+ $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000
Interest Coverage 1 ($ in thousands) S-15 Three Months Ended March 31, June 30, September 30, December 31, Last Twelve 2021 2021 2021 2021 Months Net income (loss) attributable to ACC, Inc. and Subsidiaries common stockholders $ 15,618 $ (9,402) $ (11,439) $ 40,712 $ 35,489 Net income (loss) attributable to noncontrolling interests 367 (1,651) (1,920) 999 (2,205) Interest expense 28,977 29,240 29,271 30,305 117,793 Income tax provision 340 341 340 340 1,361 Depreciation and amortization 68,117 68,741 69,445 69,294 275,597 Amortization of deferred financing costs 1,319 1,418 1,470 1,617 5,824 Share-based compensation 5,148 6,481 4,693 3,531 19,853 Earnings Before Interest, Taxes, Depreciation, and Amortization ("EBITDA") $ 119,886 $ 95,168 $ 91,860 $ 146,798 $ 453,712 Pro-forma adjustments to EBITDA 2 13,326 Adjusted EBITDA $ 467,038 Interest Expense from consolidated statement of comprehensive income $ 28,977 $ 29,240 $ 29,271 $ 30,305 $ 117,793 Amortization of mortgage debt premiums/discounts 395 340 366 131 1,232 Capitalized interest 2,532 2,367 1,849 1,874 8,622 Change in accrued interest payable 9,248 (7,062) 7,346 (8,617) 915 Cash Interest Expense $ 41,152 $ 24,885 $ 38,832 $ 23,693 $ 128,562 Pro-forma adjustments to Cash Interest Expense 2 4,104 Adjusted Interest Expense $ 132,666 Interest Coverage 3.5x 1. Refer to pages S-20 and S-21 for detailed definitions of terms appearing on this page. 2. Adjustment to reflect all acquisitions, development deliveries, dispositions, debt repayments, and debt refinancings as if such transactions had occurred on the first day of the 12 month period presented.
Current Development Pipeline Funding Plan (2022 - 2023) ($ in millions) S-16 Sources and Uses for Development - As of December 31, 2021 Estimated Project Total Costs Remaining Estimated Capital Uses: Cost Incurred Capital Needs Development Pipeline1: Disney College Program Housing Phases VII-VIII (2022 deliveries) $ 123 $ 114 $ 9 Phases IX-X (2023 deliveries) 123 99 24 Total $ 246 $ 213 $ 33 A Estimated Sources through 2023: Capital Sources Cash and Cash Equivalents as of December 31, 2021 $ 120 Estimated Cash Flow Available for Investment - through 2023 2 156 ASU joint venture - Phase II 3 280 Total $ 556 B Capital Excess / (Shortfall) $ 523 B-A Note: This analysis demonstrates the capital requirements and anticipated funding sources for the developments currently committed, underway, or with expected starts in the current year. As future developments commence, they are expected to be funded via excess capital, additional dispositions, joint ventures, free cash available for investment, and/or capital market transactions. Excess capital represents additional funds available for debt repayment, development and other external growth investment. 1. Includes owned development projects under construction and management’s Estimated Project Cost for future development deliveries that are expected to commence construction during the current year, as disclosed on page S-11. 2. Available cash flow is derived from disclosures in our 2020 Form 10-K and is calculated as net cash provided by operating activities of $351.1 million, excluding changes in working capital of $40.9 million plus interest rate swap related items of $1.7 million, less dividend payments of $260.8 million, less principal payments on debt of $11.9 million, less recurring capital expenditures of $20.8 million. This calculation results in available cash flow for investment in 2020 of $15.0 million. Due to the impacts of COVID-19 on the available cash flow for investment in 2020, the Estimated Cash Flow Available for Investment through 2023 assumes available cash flow in 2021 is consistent with levels experienced in 2020, followed by a gradual recovery to fully normalized levels by 2023. 3. Represents estimated gross proceeds to ACC for the second phase of the ASU joint venture transaction, which is expected to be completed in late 2022 or early 2023.
Outlook - Summary (Full Year and Q1 2022) 1 ($ in thousands, except share and per share data) S-17 Full Year 2022 Guidance Q1 2022 Guidance Low High Low High Net income $ 73,400 $ 87,300 $ 35,000 $ 37,300 Noncontrolling interests' share of net income 3,900 4,400 2,800 2,900 Joint Venture ("JV") partners' share of FFO JV partners' share of net income (3,700) (4,200) (2,800) (2,900) JV partners' share of depreciation and amortization (12,700) (12,700) (3,200) (3,200) (16,400) (16,900) (6,000) (6,100) Total depreciation and amortization 289,400 289,400 71,700 71,700 Corporate depreciation (3,200) (3,200) (800) (800) FFO $ 347,100 $ 361,000 $ 102,700 $ 105,000 Elimination of operations from on-campus participating properties ("OCPP") (13,700) (13,300) (5,900) (5,800) Contribution from OCPPs 3,200 3,800 900 1,100 FFOM $ 336,600 $ 351,500 $ 97,700 $ 100,300 Net income per share - diluted $ 0.52 $ 0.62 $ 0.25 $ 0.26 FFO per share - diluted $ 2.46 $ 2.56 $ 0.73 $ 0.74 FFOM per share - diluted $ 2.39 $ 2.49 $ 0.69 $ 0.71 Weighted-average common shares outstanding - diluted 141,066,600 141,066,600 141,061,800 141,061,800 1. The company believes that the financial results for the year ending December 31, 2022, may be affected by a number of factors, including but not limited to: • national and regional economic trends and events; • the success of leasing the company's owned properties for the 2022-2023 academic year; • the timing and amount of any acquisitions, dispositions or joint venture activity; • interest rate risk; • the timing of commencement and completion of construction on owned and third-party development projects; • university enrollment, funding and policy trends; • the outcome of legal proceedings arising in the normal course of business; and • the finalization of property tax rates and assessed values in certain jurisdictions.
S-18 1. Refer to page S-19 for detail of the 2022 same store and new property groupings. 2022 Outlook - Detail ($ in thousands, except share and per share data) FFOM Guidance Assumptions & Other Year Ending December 31, 2022 Low High Owned Properties 2022 same store properties Rental revenue $ 856,700 $ 862,700 ß Assumes academic year 2022/2023 opening rental revenue growth of 3.2% - 4.6%. Other income 56,600 56,600 Same store revenue 913,300 919,300 % growth 5.4 % 6.1 % Same store operating expenses (410,000) (407,100) % growth 4.0 % 3.2 % Same store net operating income ("NOI") 503,300 512,200 % growth 6.6 % 8.5 % 2022 new properties NOI 37,800 39,800 2022 other (400) (400) ß Includes recurring professional fees related to the operation of our consolidated joint ventures. Total owned properties NOI $ 540,700 $ 551,600 Third-party development services revenue $ 15,200 $ 20,000 ß See page S-12 for the for third-party development projects that are possible to commence during 2022. Third-party management services revenue $ 10,900 $ 11,700 Third-party development and mgmt. services expenses $ (19,800) $ (20,500) General and administrative expenses $ (41,500) $ (42,700) Ground/facility leases expense $ (27,200) $ (27,800) ß Includes $13.0 million in ground lease expense related to same store ACE properties and $12.8 million related to the operating phases of the Disney College Program development project. Less: OCPP ground/facility leases expense $ 1,500 $ 1,900 Interest income $ 1,600 $ 1,600 ß Excludes on-campus participating properties ("OCPPs") for the purposes of calculating FFOM. Interest expense $ (122,300) $ (121,700) ß Net of $4.9 million of capitalized interest. Less: OCPP interest expense $ 3,000 $ 3,000 Amortization of deferred financing costs $ (6,200) $ (6,200) ß Excludes amounts related to OCPPs for the purposes of calculating FFOM. Corporate depreciation $ (3,200) $ (3,200) ß Represents depreciation on corporate assets not added back for the purposes of calculating FFO. OCPP overhead $ (1,500) $ (1,700) Income tax provision $ (1,400) $ (1,400) JV partners' share of net income $ (3,700) $ (4,200) ß JV partners' share of net income plus their share of depreciation and amortization represents total minority JV partners' share of FFO. For the purposes of calculating NAV, the company excludes $23.9 million of NOI and $148.5 million of mortgage debt related to consolidated joint venture partners' share of NOI and any mortgage debt.JV partners' share of depreciation and amortization $ (12,700) $ (12,700) Contribution from OCPP $ 3,200 $ 3,800 ß Includes the company's 50% share of OCPP net cash flow and management and development fees received, as per the definition of FFOM on page S-20. FFOM per share - diluted $ 2.39 $ 2.49
Detail of Property Groupings As of December 31, 2021 S-19 2021 Grouping 2022 Grouping Same Store Properties New Properties Same Store Properties New Properties # of Properties Design Beds # of Properties Design Beds # of Properties Design Beds # of Properties Design Beds Properties Purchased or Developed Prior to January 1, 2020 157 95,365 157 95,365 2020 Development Deliveries 3 2,496 2 869 1 1,627 2021 Development Deliveries 1 2 — 3,657 — 3,657 2022 Development Deliveries 1 3 — 2,947 — 2,947 2023 Development Deliveries 1 — 2,209 — 2,209 Total Owned Properties 157 95,365 3 11,309 159 96,234 1 10,440 Grand Total # of Owned Properties (All Groupings) 160 Grand Total Owned Design Beds (All Groupings) 106,674 Note on Property Portfolio: When disclosing our number of properties and design beds as of a certain date, we include all properties that are owned and operating as of that date, as well as properties that are under construction and anticipated to open for operations in future years. Properties that are in our development pipeline but have not yet commenced construction are not included. 2021: The 2021 same store grouping represents properties owned and operating for both of the entire calendar years ended December 31, 2021 and 2020. This same store grouping will be used for purposes of presenting our 2021 same store operating results. 2022: The 2022 same store grouping represents properties owned and operating for both of the entire calendar years ended December 31, 2022 and 2021. This same store grouping will be used for purposes of presenting our 2022 same store operating results. 1. The Disney College Program project will be delivered in multiple phases over several years with initial deliveries occurring in 2020 and full development completion anticipated in 2023. All phases are counted as one property in the table above. As of December 31, 2021, five phases totaling 5,284 beds were open for occupancy. All phases of the Disney College Program project will be included in our same store results as one property beginning in 2025 once all ten phases have been completed and operating for two full calendar years. 2. Includes 288 beds delivered in July 2021 as a part of Phase V of the Disney College Program which were previously scheduled for delivery in January 2022 as a part of Phase VI. 3. Includes 739 beds delivered as a part of Phase VI for which construction was substantially complete as of December 31, 2021, but were not occupied until January 2022.
Definitions ACE The company’s American Campus Equity program, whereby the company enters into long-term ground/facility lease agreements with Universities to invest our capital and to develop, own, and operate on-campus student housing communities. Properties under this structure are considered to be owned and are included in the company's consolidated financial statements. Adjusted EBITDA* EBITDA, including pro forma adjustments to reflect acquisitions, development deliveries, and dispositions as if such transactions had occurred on the first day of the 12-month period presented. Adjusted Interest Expense* Interest Expense, including pro forma adjustments to reflect acquisitions, development deliveries, dispositions, debt repayments, and debt refinancings as if such transactions had occurred on the first day of the 12-month period presented. Cash Cash and cash equivalents, determined on a consolidated basis in accordance with GAAP. Cash Interest Expense* Consolidated interest expense calculated in accordance with GAAP, plus amounts which have been deducted and minus amounts which have been added for, without duplication: (i) the amortization of mark-to-market premiums/discounts on mortgage loans assumed in connection with acquisitions; (ii) capitalized interest; and (iii) the change in accrued interest during the period presented. Design Beds Total beds based on the original property design, generally as specified in the construction documents. EBITDA* Consolidated net income calculated in accordance with GAAP, plus amounts which have been deducted and minus amounts which have been added for, without duplication: (i) interest expense; (ii) provision for income taxes; (iii) depreciation, amortization and all other non- cash items; (iv) provision for gains and losses; (v) noncontrolling interests; and (vi) extraordinary and other non-recurring items, as we determine in good faith. Funds from Operations (”FFO”) Determined based on the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”). Calculated as consolidated net income or loss attributable to common shares computed in accordance with GAAP, excluding gains or losses from depreciable operating property sales, plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Also excludes non-cash impairment charges. FFO Modified (”FFOM”) FFO modified to reflect certain adjustments related to the economic performance of our on-campus participating properties and other items, as we determine in good faith, that do not reflect our core operations on a comparative basis. The company believes it is meaningful to eliminate the FFO generated from the on-campus participating properties and instead to reflect the company's 50% share of the properties' net cash flow and management and development fees received, as this measure better reflects the economic benefit derived from the company's involvement in the operation of these properties. GAAP Accounting principles generally accepted in the United States of America. Interest Coverage* Adjusted EBITDA / Adjusted Interest Expense. Net Debt* Total Debt less Cash. Net Debt to EBITDA* Net Debt divided by Adjusted EBITDA. Net Operating Income “NOI” Property revenues less direct property operating expenses, excluding depreciation, but including an allocation of costs related to corporate management and oversight. * These definitions are provided for purposes of calculating the company’s unsecured notes covenants and other key ratios. S-20
Definitions On-campus Participating Properties ("OCPPs") A transaction structure whereby the company enters into long-term ground/facility lease agreements with Universities to develop, construct, and operate student housing communities. Under the terms of the leases, title to the constructed facilities is held by the University/lessor and such lessor receives 50% of net cash flows, as defined, on an annual basis through the term of the lease. Operating Expenses General & administrative and other expenses include security costs, shuttle costs, and property-level general and administrative costs as well as an allocation of costs related to corporate management and oversight. Also includes acquisition integration costs, food service, and other miscellaneous expenses. Utilities expense represents gross expenses prior to any recoveries from tenants, which are reflected in owned properties revenues. Payroll expense includes payroll and related expenses for on-site personnel including general managers, maintenance staff, and leasing staff. Repairs and maintenance expense includes general maintenance costs such as interior painting, routine landscaping, pest control, fire protection, snow removal, elevator maintenance, roof and parking lot repairs, and other miscellaneous building repair costs. Also includes costs related to the annual turn process. Marketing expense includes costs related to property marketing campaigns associated with our ongoing leasing efforts. Physical Occupancy Occupied beds, including staff accommodations, divided by Design Beds. Rentable Beds Design Beds less beds used by on-site staff. Same Store Grouping Properties owned and operating for both of the entire annual periods presented, which are not conducting or planning to conduct substantial development, redevelopment, or repositioning activities, and are not classified as held for sale as of the current period-end. Includes the full operating results of properties owned through joint ventures in which the company has a controlling financial interest and which are consolidated for financial reporting purposes. Secured Debt* The portion of Total Debt that is secured by a mortgage, trust, deed of trust, deed to secure indebtedness, pledge, security interest, assignment of collateral, or any other security agreement. Total Asset Value* Undepreciated book value of real estate assets and all other assets, excluding receivables, intangibles, and right of use assets, of our consolidated subsidiaries, all determined in accordance with GAAP. Total Debt* Total consolidated debt calculated in accordance with GAAP, including finance leases and excluding mark-to-market premiums/ discounts on mortgage loans assumed in connection with acquisitions, the original issued discount on unsecured notes, and deferred financing costs. Total Equity Market Value Fully diluted common shares times the company’s stock price at period-end. Unencumbered Asset Value* The sum of (i) the undepreciated book value of real estate assets which are not subject to secured debt; and (ii) all other assets, excluding accounts receivable and intangibles, for such properties. Does not include assets of unconsolidated joint ventures. Unsecured Debt* The portion of Total Debt that is not Secured Debt. * These definitions are provided for purposes of calculating the company’s unsecured notes covenants and other key ratios. S-21
Investor Information Corporate Headquarters Investor Relations American Campus Communities, Inc. Tel: (512) 732-1000 Ryan Dennison (512) 732-1000 12700 Hill Country Blvd., Suite T-200 Fax: (512) 732-2450 SVP, Capital Markets and Investor Relations rdennison@americancampus.com Austin, Texas 78738 www.americancampus.com Executive Management Bill Bayless Chief Executive Officer Jennifer Beese President & Chief Operating Officer Daniel Perry Chief Financial Officer William Talbot Chief Investment Officer Kim Voss Chief Accounting Officer Research Coverage Jeffery Spector / Joshua Dennerlein BofA Securities (646) 855-1363 / (646) 855-1681 jeff.spector@bofa.com / joshua.dennerlein@bofa.com Neil Malkin Capital One (571) 633-8191 neil.malkin@capitalone.com Michael Bilerman / Nick Joseph Citigroup Equity Research (212) 816-1383 / (212) 816-1909 michael.bilerman@citi.com / nicholas.joseph@citi.com Derek Johnston / Tom Hennessy Deutsche Bank Securities, Inc. (212) 250-5683 / (212) 250-4063 derek.johnston@db.com / tom.hennessy@db.com Steve Sakwa / Samir Khanal Evercore ISI (212) 446-9462 / (212) 888-3796 steve.sakwa@evercoreisi.com / samir.khanal@evercoreisi.com Chandni Luthra Goldman Sachs (212) 902-5533 chandni.luthra@gs.com John Pawlowski / Alan Peterson Green Street Advisors (949) 640-8780 / (949) 640-8780 jpawlowski@greenstreetadvisors.com / apeterson@greenstreetadvisors.com Anthony Paolone / Nahom Tesfazghi J.P. Morgan Securities (212) 622-6682 anthony.paolone@jpmorgan.com / nahom.tesfazghi@jpmchase.com Jordan Sadler / Austin Wurschmidt KeyBanc Capital Markets (917) 368-2280 / (917) 368-2311 jsadler@key.com / awurschmidt@key.com Alexander Goldfarb Piper Sandler & Co. (212) 466-7937 alexander.goldfarb@psc.com American Campus Communities, Inc. is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding American Campus Communities, Inc.'s performance made by such analysts are theirs alone and do not represent the opinions, forecasts or predictions of the company or its management. American Campus Communities, Inc. does not by its reference above or distribution imply its endorsement of or concurrence with such information, conclusions or recommendations. S-22
Forward-looking Statements and Non-GAAP Financial Measures In addition to historical information, this press release contains forward-looking statements under the applicable federal securities law. These statements are based on management’s current expectations and assumptions regarding markets in which American Campus Communities, Inc. (the “company”) operates, operational strategies, anticipated events and trends, the economy, and other future conditions. Forward- looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. These risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward looking-statements include those related to the COVID-19 pandemic, about which there are still many unknowns, including the duration of the pandemic and the extent of its impact, and those discussed in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2020 under the heading “Risk Factors” and under the heading “Business - Forward-looking Statements” and subsequent quarterly reports on Form 10-Q. We undertake no obligation to publicly update any forward-looking statements, including our expected 2022 operating results, whether as a result of new information, future events, or otherwise. This presentation contains certain financial information not derived in accordance with United States generally accepted accounting principles (“GAAP”). These items include earnings before interest, tax, depreciation and amortization (“EBITDA”), net operating income (“NOI”), funds from operations (“FFO”) and FFO-Modified (“FFOM”). Refer to Definitions for a detailed explanation of terms appearing in the supplement. The company presents this financial information because it considers each item an important supplemental measure of its operating performance and believes it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs. These measures should not be considered as alternatives to net income or loss computed in accordance with GAAP as an indicator of the company's financial performance or to cash flow from operating activities computed in accordance with GAAP as an indicator of its liquidity, nor are these measures indicative of funds available to fund its cash needs, including its ability to pay dividends or make distributions.