Financial Highlights S-1 Consolidated Balance Sheets S-2 Consolidated Statements of Comprehensive Income S-3 Consolidated Statements of Funds from Operations S-4 Owned Properties Results of Operations S-5 Same Store Owned Properties Operating Expenses S-6 Seasonality of Operations S-7 Owned Development Update S-8 Third-Party Development Update S-9 Management Services Update S-10 Capital Structure S-11 Interest Coverage S-12 Detail of Property Groupings S-13 Definitions S-14 Investor Information S-16 Table of Contents Q2 Supplemental Package July 25, 2022 Exhibit 99.2
Financial Highlights ($ in thousands, except share and per share data) S-1 Operating Data Three Months Ended June 30, Six Months Ended June 30, 2022 2021 $ Change % Change 2022 2021 $ Change % Change Total revenues $ 245,658 $ 208,521 $ 37,137 17.8% $ 519,404 $ 441,243 $ 78,161 17.7% Operating income 35,073 19,437 15,636 80.4% 109,068 65,838 43,230 65.7% Net income (loss) attributable to ACC 4,419 (9,402) 13,821 (147.0%) 43,602 6,216 37,386 601.4% Net income (loss) per share - basic 0.03 (0.07) 0.31 0.04 Net income (loss) per share - diluted 0.03 (0.07) 0.30 0.04 Funds From Operations ("FFO") 1 71,589 56,714 14,875 26.2% 177,665 137,875 39,790 28.9% FFO per share - diluted 1 0.51 0.41 0.10 24.4% 1.26 0.99 0.27 27.3% Funds From Operations - Modified ("FFOM") 1 76,801 58,770 18,031 30.7% 178,187 138,234 39,953 28.9% FFOM per share - diluted 1 0.54 0.42 0.12 28.6% 1.26 0.99 0.27 27.3% Market Capitalization and Unsecured Notes Covenants 2 June 30, 2022 December 31, 2021 Debt to total market capitalization 27.6% 30.5% Net debt to EBITDA 3 6.8x 7.3x Unencumbered asset value to total asset value 89.0% 89.1% Total debt to total asset value 38.3% 39.1% Secured debt to total asset value 5.9% 5.9% Unencumbered asset value to unsecured debt 274.8% 268.9% Interest coverage 3 4.2x 3.5x 1. Refer to page S-4 for a reconciliation to net income, the most directly comparable GAAP measure. 2. Refer to the definitions outlined on pages S-14 and S-15 for detailed definitions of terms appearing on this page. 3. Refer to calculations on page S-12, including a reconciliation to net income and interest expense, the most directly comparable GAAP measures.
Consolidated Balance Sheets ($ in thousands) S-2 June 30, 2022 December 31, 2021 (unaudited) Assets Investments in real estate Owned properties, net $ 6,606,132 $ 6,676,811 On-campus participating properties, net 62,518 65,559 Investments in real estate, net 6,668,650 6,742,370 Cash and cash equivalents 45,460 120,351 Restricted cash 19,508 14,326 Student contracts receivable, net 13,727 14,187 Operating lease right of use assets 1 455,036 456,239 Other assets 1 236,432 227,113 Total assets $ 7,438,813 $ 7,574,586 Liabilities and equity Liabilities Secured mortgage and bond debt, net $ 533,514 $ 535,836 Unsecured notes, net 2,776,105 2,773,855 Unsecured term loan, net — 199,824 Unsecured revolving credit facility 135,000 — Accounts payable and accrued expenses 77,303 93,067 Operating lease liabilities 2 500,603 496,821 Other liabilities 2 131,778 173,898 Total liabilities 4,154,303 4,273,301 Redeemable noncontrolling interests 29,212 31,858 Equity American Campus Communities, Inc. and Subsidiaries stockholders' equity Common stock 1,394 1,391 Additional paid in capital 4,698,859 4,694,242 Common stock held in rabbi trust (3,801) (3,943) Accumulated earnings and dividends (1,582,281) (1,559,765) Accumulated other comprehensive loss (7,569) (14,547) Total American Campus Communities, Inc. and 3,106,602 3,117,378 Subsidiaries stockholders' equity Noncontrolling interests - partially owned properties 148,696 152,049 Total equity 3,255,298 3,269,427 Total liabilities and equity $ 7,438,813 $ 7,574,586 1. For purposes of calculating net asset value ("NAV") at June 30, 2022, the company excludes other assets of approximately $6.7 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 June 30, 2022, the company excludes other liabilities of approximately $33.2 million related to deferred revenue and fee income, as well as operating lease liabilities disclosed above.
Consolidated Statements of Comprehensive Income (Unaudited, $ in thousands, except share and per share data) S-3 Three Months Ended June 30, Six Months Ended June 30, 2022 2021 $ Change 2022 2021 $ Change Revenues Owned properties $ 232,313 $ 199,623 $ 32,690 $ 485,361 $ 418,067 $ 67,294 On-campus participating properties 6,168 5,221 947 16,862 14,179 2,683 Third-party development services 4,147 866 3,281 11,029 2,825 8,204 Third-party management services 3,030 2,811 219 6,152 6,172 (20) Total revenues 245,658 208,521 37,137 519,404 441,243 78,161 Operating expenses Owned properties 106,961 95,703 11,258 210,569 189,694 20,875 On-campus participating properties 3,929 3,279 650 7,930 6,569 1,361 Third-party development and management services 5,026 5,000 26 10,180 10,387 (207) General and administrative 1 16,872 12,093 4,779 27,170 23,221 3,949 Depreciation and amortization 70,978 68,741 2,237 141,530 136,858 4,672 Ground/facility leases 6,819 3,435 3,384 12,957 6,643 6,314 Other operating expenses 2 — 833 (833) — 2,033 (2,033) Total operating expenses 210,585 189,084 21,501 410,336 375,405 34,931 Operating income 35,073 19,437 15,636 109,068 65,838 43,230 Nonoperating income (expenses) Interest income 407 352 55 967 572 395 Interest expense (30,509) (29,240) (1,269) (60,570) (58,217) (2,353) Amortization of deferred financing costs (1,626) (1,418) (208) (3,240) (2,737) (503) Other nonoperating income 577 157 420 757 157 600 Total nonoperating expenses (31,151) (30,149) (1,002) (62,086) (60,225) (1,861) Income (loss) before income taxes 3,922 (10,712) 14,634 46,982 5,613 41,369 Income tax provision (323) (341) 18 (663) (681) 18 Net income (loss) 3,599 (11,053) 14,652 46,319 4,932 41,387 Net loss (income) attributable to noncontrolling interests 820 1,651 (831) (2,717) 1,284 (4,001) Net income (loss) attributable to ACC, Inc. and $ 4,419 $ (9,402) $ 13,821 $ 43,602 $ 6,216 $ 37,386 Subsidiaries common stockholders Other comprehensive income Change in fair value of interest rate swaps and other 2,261 1,351 910 6,978 3,869 3,109 Comprehensive income (loss) $ 6,680 $ (8,051) $ 14,731 $ 50,580 $ 10,085 $ 40,495 Net income (loss) per share attributable to ACC, Inc. and Subsidiaries common stockholders Basic $ 0.03 $ (0.07) $ 0.31 $ 0.04 Diluted $ 0.03 $ (0.07) $ 0.30 $ 0.04 Weighted-average common shares outstanding Basic 139,463,165 138,048,659 139,350,929 137,884,442 Diluted 141,066,184 138,048,659 140,624,028 139,139,383 1. The three and six months ended June 30, 2022 amounts include $0.2 million and $0.4 million in consulting, legal, and other costs incurred in relation to stockholder activism activities in preparation for the company's annual stockholders' meeting, respectively. The three and six months ended June 30, 2022 amounts also include $5.2 million of transaction costs incurred related to the Blackstone Merger Agreement executed on April 18, 2022. The three months ended June 30, 2021 amount includes $1.3 million in accelerated amortization of unvested restricted stock awards due to the retirement of the company's President in August 2021. The six months ended June 30, 2021 amount includes $0.9 million in consulting, legal, and other costs incurred in relation to stockholder activism activities in preparation for the company's annual stockholders' meeting and $1.8 million in accelerated amortization of unvested restricted stock awards due to the retirement of the company's President in August 2021. 2. The three and six months ended June 30, 2021 amounts include $0.8 million and $2.0 million related to the settlement of a litigation matter, respectively.
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. 3. Represents transaction costs incurred in relation to the Blackstone Merger Agreement executed on April 18, 2022. 4. Represents consulting, legal, and other 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. 5. Represents expense associated with the settlement of a litigation matter, which is included in other operating expenses in the accompanying consolidated statements of comprehensive income. 6. 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. Consolidated Statements of Funds from Operations ("FFO") (Unaudited, $ in thousands, except share and per share data) S-4 Three Months Ended June 30, Six Months Ended June 30, 2022 2021 $ Change 2022 2021 $ Change Net income (loss) attributable to ACC, Inc. and Subsidiaries common stockholders $ 4,419 $ (9,402) $ 13,821 $ 43,602 $ 6,216 $ 37,386 Noncontrolling interests' share of net (loss) income (820) (1,651) 831 2,717 (1,284) 4,001 Joint Venture ("JV") partners' share of FFO JV partners' share of net loss (income) 818 1,634 (816) (2,573) 1,334 (3,907) JV partners' share of depreciation and amortization (3,116) (1,902) (1,214) (6,237) (3,794) (2,443) (2,298) (268) (2,030) (8,810) (2,460) (6,350) Total depreciation and amortization 70,978 68,741 2,237 141,530 136,858 4,672 Corporate depreciation 1 (690) (706) 16 (1,374) (1,455) 81 FFO attributable to common stockholders and OP unitholders 71,589 56,714 14,875 177,665 137,875 39,790 Elimination of operations of on-campus participating properties ("OCPPs") Net loss (income) from OCPPs 749 1,135 (386) (3,152) (1,819) (1,333) Amortization of investment in OCPPs (1,996) (2,039) 43 (3,989) (4,081) 92 70,342 55,810 14,532 170,524 131,975 38,549 Modifications to reflect operational performance of OCPPs Our share of net cashflow 2 635 534 101 1,068 673 395 Management fees and other 362 294 68 931 802 129 Contribution from OCPPs 997 828 169 1,999 1,475 524 Blackstone transaction costs 3 5,235 — 5,235 5,235 — 5,235 Stockholder activism and other proxy advisory costs 4 227 — 227 429 914 (485) Elimination of litigation settlement expense 5 — 833 (833) — 2,033 (2,033) Executive retirement charges 6 — 1,299 (1,299) — 1,837 (1,837) Funds from operations-modified ("FFOM") attributable to $ 76,801 $ 58,770 $ 18,031 $ 178,187 $ 138,234 $ 39,953 common stockholders and OP unitholders FFO per share - diluted $ 0.51 $ 0.41 $ 1.26 $ 0.99 FFOM per share - diluted $ 0.54 $ 0.42 $ 1.26 $ 0.99 Weighted-average common shares outstanding - diluted 141,066,184 139,766,038 141,053,324 139,643,100
Owned Properties Results of Operations 1 ($ in thousands) S-5 Three Months Ended June 30, Six Months Ended June 30, 2022 2021 $ Change % Change 2022 2021 $ Change % Change Owned properties revenues Same store properties $ 215,981 $ 198,239 $ 17,742 8.9% $ 455,620 $ 416,028 $ 39,592 9.5% New properties 16,332 1,384 14,948 29,741 2,039 27,702 Total revenues $ 232,313 $ 199,623 $ 32,690 16.4% $ 485,361 $ 418,067 $ 67,294 16.1% Owned properties operating expenses Same store properties 2 $ 99,221 $ 93,234 $ 5,987 6.4% $ 195,590 $ 185,637 $ 9,953 5.4% New properties 7,675 2,398 5,277 14,823 3,915 10,908 Other 3 65 71 (6) 156 142 14 Total operating expenses $ 106,961 $ 95,703 $ 11,258 11.8% $ 210,569 $ 189,694 $ 20,875 11.0% Owned properties net operating income (loss) Same store properties $ 116,760 $ 105,005 $ 11,755 11.2% $ 260,030 $ 230,391 $ 29,639 12.9% New properties 8,657 (1,014) 9,671 14,918 (1,876) 16,794 Other 3 (65) (71) 6 (156) (142) (14) Total net operating income $ 125,352 $ 103,920 $ 21,432 20.6% $ 274,792 $ 228,373 $ 46,419 20.3% 1. Refer to page S-13 for detail of our store groupings. 2. Refer to page S-6 for detail of same store operating expenses. 3. Includes 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).
Same Store Owned Properties Operating Expenses 1 2 ($ in thousands, except per bed amounts) S-6 Three Months Ended June 30, 2022 2021 Total Per Bed $ Change From Prior Year % Change From Prior Year % of Total Operating Expenses Total Per Bed % of Total Operating Expenses Property taxes $ 23,051 $ 240 $ (325) (1.4%) 24% $ 23,376 $ 244 24% General & administrative and other 19,580 203 881 4.7% 20% 18,699 194 20% Utilities 19,187 199 1,921 11.1% 19% 17,266 179 19% Payroll 19,089 198 388 2.1% 19% 18,701 194 20% Repairs and maintenance 10,958 114 2,872 35.5% 11% 8,086 84 9% Insurance 4,029 42 447 12.5% 4% 3,582 37 4% Marketing 3,327 35 (197) (5.6%) 3% 3,524 37 4% Total same store owned operating expenses $ 99,221 $ 1,031 $ 5,987 6.4% 100% $ 93,234 $ 969 100% Same store owned beds 96,234 Six Months Ended June 30, 2022 2021 Total Per Bed $ Change From Prior Year % Change From Prior Year % of Total Operating Expenses Total Per Bed % of Total Operating Expenses Property taxes $ 45,911 $ 478 $ (269) (0.6%) 23% $ 46,180 $ 480 25% General & administrative and other 39,373 409 2,298 6.2% 20% 37,075 385 20% Utilities 38,618 401 2,552 7.1% 20% 36,066 375 19% Payroll 37,578 390 725 2.0% 19% 36,853 383 20% Repairs and maintenance 19,157 199 3,568 22.9% 10% 15,589 162 8% Insurance 7,808 81 1,004 14.8% 4% 6,804 71 4% Marketing 7,145 74 75 1.1% 4% 7,070 73 4% Total same store owned operating expenses $ 195,590 $ 2,032 $ 9,953 5.4% 100% $ 185,637 $ 1,929 100% Same store owned beds 96,234 1. Refer to the definition of operating expenses on page S-15 for a detailed description of items included in the various expense categories. 2. Refer to page S-13 for detail of our same store groupings.
Seasonality of Operations 1 ($ in thousands, except per bed amounts) S-7 Three Months Ended Total/Weighted Average- June 30, 2021 September 30, 2021 December 31, 2021 March 31, 2022 June 30, 2022 Last 12 Months 2022 Same Store Properties Average number of owned beds 96,234 96,234 96,234 96,234 96,234 96,234 Average physical occupancy for the quarter 83.6% 86.3% 96.0% 95.6% 87.1% 91.2% Rental revenue per occupied bed per month 2 $ 770 $ 778 $ 815 $ 815 $ 790 $ 800 Rental revenue $ 185,955 $ 193,947 $ 225,994 $ 224,877 $ 198,672 $ 843,490 Other income 3 12,284 16,181 14,271 14,762 17,309 62,523 Total revenue $ 198,239 $ 210,128 $ 240,265 $ 239,639 $ 215,981 $ 906,013 Property operating expenses 93,234 112,632 96,119 96,369 99,221 404,341 Net operating income $ 105,005 $ 97,496 $ 144,146 $ 143,270 $ 116,760 $ 501,672 Operating margin 53.0% 46.4% 60.0% 59.8% 54.1% 55.4% 2022 New Properties Average number of owned beds 3,625 5,284 5,284 6,268 7,250 6,022 Average physical occupancy for the quarter 8.6% 70.2% 87.8% 83.1% 82.8% 81.2% Rental revenue per occupied bed per month 2 $ 872 $ 778 $ 771 $ 826 $ 863 $ 815 Rental revenue $ 816 $ 8,662 $ 10,728 $ 12,904 $ 15,548 $ 47,842 Other income 3 568 623 579 505 784 2,491 Total revenue $ 1,384 $ 9,285 $ 11,307 $ 13,409 $ 16,332 $ 50,333 Property operating expenses 2,398 4,479 4,592 7,148 7,675 23,894 Net operating (loss) income $ (1,014) $ 4,806 $ 6,715 $ 6,261 $ 8,657 $ 26,439 Operating margin (73.3%) 51.8% 59.4% 46.7% 53.0% 52.5% ALL PROPERTIES Average number of owned beds 99,859 101,518 101,518 102,502 103,484 102,256 Average physical occupancy for the quarter 80.8% 85.5% 95.6% 94.8% 86.8% 90.7% Rental revenue per occupied bed per month 2 $ 772 $ 778 $ 813 $ 816 $ 795 $ 801 Rental revenue $ 186,771 $ 202,609 $ 236,722 $ 237,781 $ 214,220 $ 891,332 Other income 3 12,852 16,804 14,850 15,267 18,093 65,014 Total revenue $ 199,623 $ 219,413 $ 251,572 $ 253,048 $ 232,313 $ 956,346 Property operating expenses 95,632 117,111 100,711 103,517 106,896 428,235 Net operating income $ 103,991 $ 102,302 $ 150,861 $ 149,531 $ 125,417 $ 528,111 Operating margin 52.1% 46.6% 60.0% 59.1% 54.0% 55.2% Other 4 Total revenue $ — $ — $ — $ — $ — $ — Property operating expenses 71 65 67 91 65 288 Net operating loss $ (71) $ (65) $ (67) $ (91) $ (65) $ (288) 1. Refer to page S-13 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-5.
Owned Development Update ($ in thousands) S-8 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 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. 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 Disney College Program Phases VII A - B Orlando, FL ACE 1,472 81,400 March & May 2022 7,495 $ 450,500 OWNED DEVELOPMENT PROJECTS UNDER CONSTRUCTION 3 University / Market Served Project Location Project Type Beds 1 Estimated Project Cost 2 Total Costs Incurred as of June 30, 2022 Scheduled Occupancy Walt Disney World® Resort Disney College Program Phase VIII Orlando, FL ACE 736 $ 41,400 $ 37,721 Aug 2022 Disney College Program Phases IX-X 4 Orlando, FL ACE 2,209 122,700 104,531 Jan & May 2023 2,945 $ 164,100 $ 142,252
Third-Party Development Update ($ in thousands) S-9 Three Months Ended June 30, Six Months Ended June 30, 2022 2021 $ Change 2022 2021 $ Change Development services revenue1 $ 4,147 $ 866 $ 3,281 $ 11,029 $ 2,825 $ 8,204 1. The six months ended June 30, 2022 and 2021 amounts include $0.8 million and $0.4 million, respectively, of revenue related to cost savings on previously completed projects. 2. 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. 3. 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. 4. The scope of the proposed project may involve a combination of refinancing, new construction, extensive renovation, refurbishment and/or modernization of existing on-campus university housing facilities. CONTRACTED PROJECTS IN PROGRESS University Served Project Location Beds Total Fees Fees Earned as of June 30, 2022 Fees Earned in Current Year Remaining Fees as of June 30, 2022 Scheduled Completion Georgetown University Capitol Campus Housing Washington, D.C. 476 $ 3,000 $ 2,788 $ 436 $ 212 August 2022 Concordia University Phase II Austin, TX 235 1,300 1,200 241 100 August 2022 Princeton University Lake Campus Graduate Housing Princeton, NJ 604 6,000 3,488 951 2,512 August 2023 Drexel University Kelly Hall Renovation Philadelphia, PA 410 1,900 1,216 199 684 August 2023 University of California, Irvine Phase V Irvine, CA 1,077 5,700 2,735 768 2,965 September 2023 University of Texas at Austin Graduate Housing Austin, TX 784 4,500 2,345 2,345 2,155 July 2024 Massachusetts Institute of Technology Family & Graduate Housing Cambridge, MA 676 9,800 5,168 5,168 4,632 August 2024 4,262 $ 32,200 $ 18,940 $ 10,108 $ 13,260 ON-CAMPUS AWARD PIPELINE 2 University Served Project Location Anticipated Financing Structure Anticipated Commencement Targeted Completion Estimated Fees Emory University Graduate Housing Atlanta, GA Third-party 2022 / 2023 Fall 2024 / 2025 $3,225 University of California, Berkeley Albany Village Graduate Housing Berkeley, CA ACE 2022 Fall 2024 N/A Upper Hearst Development for the Goldman School of Public Policy Berkeley, CA Third-party 2023 Summer 2025 $3,000 Master Development - future phases 3 Berkeley, CA TBD TBD TBD TBD Purdue University Purdue University Research Foundation West Lafayette, IN Third-party 2022 / 2023 Fall 2024 / 2025 $4,200 Northeastern University Phase II Boston, MA ACE Q1 / Q2 2023 Fall 2025 N/A University of Toledo 4 Housing System Modernization, Renovation & Monetization Toledo, OH Third-party TBD TBD TBD University of California, Riverside Master Development - future phases 3 Riverside, CA TBD TBD TBD TBD Virginia Commonwealth University Honors College Housing Richmond, VA TBD TBD TBD TBD West Virginia University Master Development 3 Morgantown, WV TBD TBD TBD TBD
Management Services Update ($ in thousands) S-10 Three Months Ended June 30, Six Months Ended June 30, 2022 2021 $ Change 2022 2021 $ Change Management services revenue $ 3,030 $ 2,811 $ 219 $ 6,152 $ 6,172 $ (20) NEW / PENDING MANAGEMENT CONTRACTS University Served Project Location Approximate Beds Stabilized Annual Fees 1 Actual or Anticipated Commencement University of Toledo 2 Various Toledo, OH 2,730 $ 700 June 2022 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 5,081 $ 1,530 DISCONTINUED MANAGEMENT CONTRACTS University Served Project Location Beds 2022 Fee Contribution Prior to Termination Discontinued As Of Disney College Program 3 Various Orlando, FL 3,771 $ 21 March 2022 Columbus State University Independence Place Columbus, GA 555 38 March 2022 Temple College University Courtyard Apartments Temple, TX 280 28 June 2022 4,606 $ 87 1. Stabilized annual fees are dependent upon the achievement of anticipated occupancy levels. 2. Represents the approximate number of beds and estimated stabilized fee upon the completion of refinancing, new construction, extensive renovation, refurbishment and/or modernization of existing on-campus university housing facilities. 3. 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-8).
1. Refer to the definitions outlined on pages S-14 and S-15 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 $4.9 million, and unamortized deferred financing costs of $20.0 million. 3. Based on share price of $64.47 and fully diluted share count of 141,060,479 as of June 30, 2022. Assumes conversion of 406,574 common and preferred Operating Partnership units and 1,170,873 unvested restricted stock awards. 4. Refer to calculations on page S-12, including a reconciliation to net income and interest expense, the most directly comparable GAAP measures. 5. Excludes accumulated depreciation of $2.2 billion, receivables and intangible assets, net of accumulated amortization of $83.6 million, and lease-related right of use assets of $455.0 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 4.2%. 8. The company's variable rate debt consists of the unsecured revolving credit facility and $0.4 million of mortgage debt at one of our on-campus participating properties. Capital Structure as of June 30, 2022 1 ($ in millions, except per share data) S-11 Market Capitalization & Unsecured Notes Covenants Debt Maturity Schedule Total Debt 2 $ 3,469 Total Equity Market Value 3 9,094 Total Market Capitalization 12,563 Debt to Total Market Capitalization 27.6% Net Debt to EBITDA 4 6.8x Total Asset Value 5 $ 9,060 Unencumbered Asset Value 8,065 Unencumbered Asset Value to Total Asset Value 89.0% Requirement Current Ratio Total Debt to Total Asset Value ≤ 60% 38.3% Secured Debt to Total Asset Value ≤ 40% 5.9% Unencumbered Asset Value to Unsecured Debt > 150% 274.8% Interest Coverage 4 > 1.5x 4.2x Principal Outstanding ² Weighted Average Interest Rate Average Term To Maturity Mortgage Loans 6 $ 460 4.1% 7 4.8 Yrs Unsecured Revolving Credit Facility 135 2.7% 2.9 Yrs Unsecured Notes 8 2,800 3.5% 5.0 Yrs On-Campus Participating Properties 74 4.2% 13.9 Yrs Total/Weighted Average $ 3,469 3.5% 5.1 Yrs Variable Rate Debt as % of Total Debt 8 3.9% Weighted Average Interest Rate Of Debt Maturing Each Year Fixed Rate Debt N/A 3.8% 4.2% N/A 3.7% 3.6% 4.1% 2.3% 2.9% 3.9% Total Debt N/A 3.8% 4.2% 2.9% 3.7% 3.6% 4.0% 2.3% 2.9% 3.9% $400 $400 $400 $400 $400 $400 $400 $130 $330 $135 $6 $6 $24 $38 Unsecured Notes 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-12 Three Months Ended September 30, December 31, March 31, June 30, Last Twelve 2021 2021 2022 2022 Months Net (loss) income attributable to ACC, Inc. and Subsidiaries common stockholders $ (11,439) $ 40,712 $ 39,183 $ 4,419 $ 72,875 Net (loss) income attributable to noncontrolling interests (1,920) 999 3,537 (820) 1,796 Interest expense 29,271 30,305 30,061 30,509 120,146 Income tax provision 340 340 340 323 1,343 Depreciation and amortization 69,445 69,294 70,552 70,978 280,269 Amortization of deferred financing costs 1,470 1,617 1,614 1,626 6,327 Share-based compensation 4,693 3,531 4,294 3,995 16,513 Earnings Before Interest, Taxes, Depreciation, and Amortization ("EBITDA") $ 91,860 $ 146,798 $ 149,581 $ 111,030 $ 499,269 Pro-forma adjustments to EBITDA 2 6,691 Adjusted EBITDA $ 505,960 Interest expense from consolidated statement of comprehensive income $ 29,271 $ 30,305 $ 30,061 $ 30,509 $ 120,146 Amortization of mortgage debt premiums/discounts 366 131 38 38 573 Capitalized interest 1,849 1,874 1,586 1,226 6,535 Change in accrued interest payable 7,346 (8,617) 7,279 (8,886) (2,878) Cash Interest Expense $ 38,832 $ 23,693 $ 38,964 $ 22,887 $ 124,376 Pro-forma adjustments to Cash Interest Expense 2 (3,326) Adjusted Interest Expense $ 121,050 Interest Coverage 4.2x 1. Refer to pages S-14 and S-15 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.
Detail of Property Groupings As of June 30, 2022 S-13 2022 Grouping 2023 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, 2021 159 96,234 159 96,234 2020 Development Deliveries 1 1 1,627 1 1,627 2021 Development Deliveries 1 — 3,657 — 3,657 2022 Development Deliveries 1 — 2,947 — 2,947 2023 Development Deliveries 1 — 2,209 — 2,209 Total Owned Properties 159 96,234 1 10,440 159 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. 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. 2023: The 2023 same store grouping represents properties owned and operating for both of the entire calendar years ended December 31, 2023 and 2022. This same store grouping will be used for purposes of presenting our 2023 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 June 30, 2022, seven phases totaling 7,495 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.
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-14
Definitions On-campus Participating Properties 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-15
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 Austin Wurschmidt KeyBanc Capital Markets (917) 368-2311 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-16
Non-GAAP Financial Measures 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. Additional Information and Where to Find It In connection with the proposed transaction with Blackstone, ACC has filed with the Securities and Exchange Commission (the “SEC”) a proxy statement on Schedule 14A, and has mailed the definitive proxy statement and a proxy card to each stockholder entitled to vote at the special meeting relating to the proposed transaction. INVESTORS AND SECURITY HOLDERS OF ACC ARE URGED TO READ THE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS IN CONNECTION WITH THE TRANSACTION THAT ACC FILES WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. The definitive proxy statement and any other documents filed by ACC with the SEC (when available) may be obtained free of charge at the SEC’s website at www.sec.gov or at ACC’s website at www.americancampus.com or by writing to American Campus Communities, Inc., Attention: Investor Relations, 12700 Hill Country Boulevard, Suite T-200, Austin, TX 78738. Cautionary Statement Regarding Forward Looking Statements Some of the statements contained in this release constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward- looking statements by discussions of strategy, plans or intentions. The forward-looking statements contained in this release reflect ACC’s current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances, many of which are beyond the control of ACC that may cause actual results and future events to differ significantly from those expressed in any forward-looking statement, which risks and uncertainties include, but are not limited to: the ability to complete the proposed transaction on the proposed terms or on the anticipated timeline, or at all, including risks and uncertainties related to securing the necessary shareholder approval and satisfaction of other closing conditions to consummate the proposed transaction; the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement relating to the proposed transaction; risks that the proposed transaction disrupts ACC’s current plans and operations or diverts the attention of ACC’s management or employees from ongoing business operations; the risk of potential difficulties with ACC’s ability to retain and hire key personnel and maintain relationships with suppliers and other third parties as a result of the proposed transaction; the failure to realize the expected benefits of the proposed transaction; the proposed transaction may involve unexpected costs and/or unknown or inestimable liabilities; the risk that ACC’s business may suffer as a result of uncertainty surrounding the proposed transaction; the risk that shareholder litigation in connection with the proposed transaction may affect the timing or occurrence of the proposed transaction or result in significant costs of defense, indemnification and liability; effects relating to the announcement of the transaction or any further announcements or the consummation of the transaction on the market price of ACC’s common stock. While forward-looking statements reflect ACC’s good faith beliefs, they are not guarantees of future performance or events. Any forward-looking statement speaks only as of the date on which it was made. ACC disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause ACC’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in ACC’s Annual Report on Form 10-K for the year ended December 31, 2021 and in the other periodic reports ACC files with the SEC. Non-GAAP Financial Measures and Other Information
