Campus Crest Communities 8K CCG Announces 2013 Results and Provides Initial 2014 Financial Outlook | SEC 27 Feb 14

Exhibit 99.1

CCG Announces 2013 Results and Provides Initial 2014 Financial Outlook

Charlotte, NC – February 26, 2014 – Campus Crest Communities, Inc. (NYSE: CCG) (the “Company”), a leading developer, builder, owner and manager of high-quality student housing properties, today announced results for the three and twelve months ended December 31, 2013.

Highlights

Fourth Quarter 2013

Increased Funds From Operations Adjusted (“FFOA”) per diluted share 5.0%, from $0.20 in the fourth quarter of 2012 to $0.21

Delivered same store net operating income (“NOI”) of $11.2 million at a 92.4% occupancy and 52.1% margin

Achieved 46.6% leasing for the 2014/2015 academic year as of February 23, 2014 at all 41 Grove operating properties compared to 42.7% the prior year, and 60.5% at the 28 operating Copper Beech properties compared to 67.8% the prior year

Commenced construction of The Grove at Gainesville, a wholly-owned 676-bed, $41.4 million development 0.3 miles from the University of Florida scheduled to be delivered for the 2014/2015 academic year

Completed the disposition of four non-core, wholly-owned student housing properties generating net proceeds of approximately $50.0 million

Issued approximately $95.2 million of its 8.0% Series A cumulative redeemable preferred stock and $100.0 million of the 4.75% senior exchangeable notes due 2018

Full Year 2013

Increased FFOA per diluted share 6.7%, from $0.75 for the year ended December, 31 2012 to $0.80

Achieved same store NOI of $35.0 million at a 91.8% occupancy and 52.8% margin

Delivered six new Grove properties and an expansion of an existing Grove property, with a total of 3,756 beds, for the 2013/2014 academic year

Based on in-place rate and occupancy, this group of developments is expected to achieve between a 7.5% and 8.0% weighted average yield

Commenced or continued progress on eight new development and two redevelopment projects expected to be delivered for the 2014/2015 academic year, containing 7,455 beds with median distance to campus of 0.3 miles

Increased the quarterly common dividend to $0.165 per share, an increase of 3.1% on an annualized basis, in January 2013

Completed a $312.7 million common stock offering to fund the staged acquisition of Copper Beech in February 2013

Financial Results for the Three and Twelve Months Ended December 31, 2013

For the three and twelve months ended December 31, 2013, Funds From Operations (“FFO”) and FFOA are shown in the table below.

FFO/FFOA
	Three Months Ended December 31,
($mm, except per share)	2013		Per share - diluted		2012		Per share - diluted
FFO	$	14.2	$	0.22	$	7.7	$	0.20
FFOA¹	$	13.5	$	0.21	$	7.7	$	0.20

	Twelve Months Ended December 31,
($mm, except per share)	2013		Per share - diluted		2012		Per share - diluted
FFO	$	49.3	$	0.82	$	25.4	$	0.72
FFOA¹	$	48.1	$	0.80	$	26.3	$	0.75

¹Includes eliminations for the write-off of transaction costs, development costs, unamortized deferred financing fees and the fair value adjustments of Copper Beech debt as reflected in the Q4 2013Supplemental Analyst Package.

A reconciliation of net income attributable to common stockholders to FFO and to FFOA can be found at the end of this release.

For the three months ended December 31, 2013, the Company reported total revenues of $35.0 million and net income (loss) attributable to common stockholders of ($12.0) million, compared to $32.3 million and $1.1 million, respectively, in the same period in 2012. For the twelve months ended December 31, 2013, the Company reported total revenues of $142.3 million and net income (loss) attributable to common stockholders of ($4.5) million, compared to $128.4 million and $6.6 million, respectively, in the same period in 2012.

Operating Results

For the three and twelve months ended December 31, 2013, results for wholly-owned same store properties were as follows:

Same Store Results
	Three Months Ended December 31,									Twelve Months Ended December 31,
($mm)	2013			2012			Change			2013			2012			Change

Number of Assets		28			28						23			23
Number of Beds		14,920			14,920						11,868			11,868
Occupancy		92.4	%		93.7	%		(130) bps			91.8	%		92.4	%		(60) bps
Total Revenues	$	21.6		$	21.2			1.6	%	$	66.4		$	65.9			0.8	%
NOI	$	11.2		$	12.3			(8.4	%)	$	35.0		$	35.9			(2.3	%)
NOI Margin		52.1	%		57.8	%		(570) bps			52.8	%		54.4	%		(160) bps

Note: Excludes 4 properties sold in December 2013.

The decrease in same-store NOI for the three and twelve months ended December 31, 2013 was primarily a result of an increase in bad debt expense of $1.2 million for both the quarter and the year.

NOI margin is calculated by dividing NOI for the period by total student housing rental and services revenues for the period. A reconciliation of net income attributable to common stockholders to NOI can be found at the end of this release. In addition, details regarding same store NOI and calculations thereof may be found in theSupplemental Analyst Packagelocated athttp://investors.campuscrest.com/.

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Portfolio Information

As of December 31, 2013, the Company owned interests in 79 properties totaling approximately 43,256 beds across North America. A summary of the leasing for the 2014 – 2015 academic year follows:

2014/2015 Acadmic Year Leasing Summary
							2014-2015					2013-2014
Property	Properties		Unit		Beds		Signed⁽¹⁾		%			Signed⁽¹⁾		%			Change

Operating
Wholly-Owned		31		6,184		16,892		8,350		49.4	%		7,859		46.5	%		2.9	%
HSRE Joint venture		10		2,086		5,732		2,187		38.2	%		1,797		31.4	%		6.8	%
Total Operating		41		8,270		22,624		10,537		46.6	%		9,656		42.7	%		3.9	%

Copper Beech Portfolio		28		5,047		13,177		7,974		60.5	%		8,939		67.8	%		(7.3	%)

Total Operating Portfolio		69		13,317		35,801		18,511		51.7	%		18,595		51.9	%		(0.2	%)

Total 2014 Deliveries		10		3,128		7,455		1,303		17.5	%		n/a		n/a			n/a

Note: Excludes the Toledo, OH redevelopment.

¹ As of February 23, 2014 and February 23, 2013, respectively.

Investment Activity

Development

The Company expects to deliver eight new development projects, totaling 5,213 beds, for the 2014/2015 academic year, at a total cost of approximately $384.9 million, of which $214.5 million is the Company’s share. The assets are located a median of 0.3 miles to campuses of primary non-flagship and flagship universities.

Redevelopment

The Company expects to deliver two redevelopment projects, totaling 2,242 beds, for the 2014/2015 academic year, at a total cost of approximately $166.4 million, of which $58.2 million is the Company’s share. The two assets are located in downtown Montréal, Québec.

Acquisitions

On September 30, 2013, the Company entered into an amendment to the purchase and sale agreement for the Copper Beech portfolio that, subject to receipt of required third-party lender consents, enabled the Company to acquire a 67% ownership interest in 30 properties, while deferring ownership in 7 properties until the Company exercises future purchase options. As of December 31, 2013, the Company held a 67% effective interest in 28 operating and 2 non-operating properties.

In January 2014, the Company acquired from Harrison Street Real Estate Capital the remaining 80% interest in The Grove at Denton, Texas, for approximately $7.7 million.

Dispositions

On December 27, 2013, the Company completed the sale of four wholly-owned Grove-branded student housing properties. The four properties were unencumbered and generated net sales proceeds to the Company of approximately $50.0 million.

Balance Sheet and Capital Markets

On October 9, 2013, the Company closed on two capital markets offerings:

$100.0 million through an issuance by its operating partnership of 4.75% exchangeable senior notes due 2018

$95.2 million through the re-opening of the Company's 8.0% Series A cumulative redeemable preferred stock.

As of December 31, 2013, the Company had $26.7 million of restricted cash from the asset sales mentioned above that were structured as a 1031 exchange. Additionally, as of December 31, 2013, the Company had not sold any shares under its $100.0 million At-the-Market common equity offering program.

Dividends

On January 28, 2014, the Company announced that its Board of Directors declared its first quarter 2014 common stock dividend of $0.165 per share. The dividend is payable on April 9, 2014 to stockholders of record as of March 26, 2014.

The Board of Directors also declared a cash dividend of $0.50 per Series A Cumulative Redeemable Preferred Share for the first quarter of 2014. The preferred share dividend is payable on April 15, 2014 to stockholders of record as of March 26, 2014.

2014 Earnings Guidance and Outlook

Based on the current expectations and judgment of the Company's management team, the Company anticipates that fiscal year 2014 FFOA will be in the range of $0.72 to $0.74 per fully diluted share. This reflects a blend of 2013/2014 and 2014/2015 academic years as well as the base case for Copper Beech in the event the Company does not elect to exercise purchase option one. The following table provides details of our 2014 guidance:

2014 FFOA Guidance
(mm, except per share figures)	Range

Wholly-owned NOI for operating properties¹	$	57.0			to	$	59.0
Occupancy		91.0	%		to		93.0	%
Total RevPOB	$	530			to	$	536

Expected weighted average development yields on 2014/2015 AY		7.5	%		to		8.0	%
deliveries (wholly-owned and JVs)

FFOA contribution from JV properties (including 2014 deliveries)	$	7.3			to	$	7.5

FFOA contribution from investment in Copper Beech²	$	15.5			to	$	16.0

Net development, construction and management services fees³	$	4.9			to	$	5.1

General and administrative expense	$	11.9			to	$	12.3

Overhead D&A				$	0.9

Ground lease				$	0.6

Interest expense	$	17.1			to	$	18.1

Preferred dividends				$	12.2

Weighted average fully diluted shares/units outstanding					65.2

¹Includes 32 wholly-owned Grove properties (31 outlined on pg. 19 of theSupplemental Analyst Package plus The Grove at Denton).

²Ownership and cash flow splits as outlined in the amendment to the PSA dated September 30, 2013.

³Shown net of taxes.

As a result of certain transactions at the end of 2013 and assumptions for 2014, the Company expects to have short term dilution of approximately $0.16 to $0.18 per fully diluted share that is embedded in the above guidance. This dilution is partially offset in 2014 by the impact of other items, such as the delivery of new properties in the third quarter 2014 that were funded by the 2013 transactions. These transactions and assumptions include:

The impact of the preferred and exchangeable notes capital raises executed in the fourth quarter 2013, which the Company believes represents a very effective manner to create liquidity at an attractive blended cost relative to a common equity issuance;

The loss of FFO contribution from recycling capital via the four wholly-owned dispositions in the fourth quarter 2013; and

A base case Copper Beech structure in 2014, in the event the Company does not elect to exercise purchase option one. This would result in the preferred payment expiring on March 18^th, ownership remaining at 67% in the 30 properties until August 18^th, and reverting to a 48% ownership across all 37 properties with no promoted cash flows thereafter. The Company thinks this is an appropriate and conservative way to guide, and will update if and when an agreement is reached.

Our FFOA guidance excludes non-recurring and non-cash items, such as the write-off of deferred financing costs as a result of early payoff of financings, potential impairments, transaction costs associated with the Copper Beech investment and other acquisitions and the mark-to-market adjustment of the Copper Beech debt. Additionally, it excludes the potential impact of any asset dispositions or capital raises.

Conference Call Details

The Company will host a conference call on Thursday, February 27, 2014, at 9:00 a.m. (EST) to discuss the financial results, as well as the Company's outlook for 2014.

The call can be accessed live over the phone by dialing 877-407-0789, or for international callers, 201-689-8562. A replay will be available shortly after the call and can be accessed by dialing 877-870-5176, or for international callers, 858-384-5517. The pin number for the replay is 13574886. The replay will be available until March 6, 2014.

Interested parties may also listen to a simultaneous webcast of the conference call by logging onto the Company's website athttp://investors.campuscrest.com/. A recording of the call will also be available on the Company's website following the call.

Supplemental Schedules

The Company has published aSupplemental Analyst Package in order to provide additional disclosure and financial information for the benefit of the Company’s stakeholders. These can be found under the “Earnings Center” tab in the Investors section of the Company’s web site athttp://www.campuscrest.com/.

About Campus Crest Communities, Inc.

Campus Crest Communities, Inc. is a leading developer, builder, owner and manager of high-quality student housing properties located close to college campuses in targeted markets. Pro forma for the Copper Beech restructure, the Company has ownership interests in 80 student housing properties and over 43,000 beds across North America, of which 70 are operating and 10 are development or redevelopment properties. The Company is an equity REIT that differentiates itself through its vertical integration and consistent branding across the portfolio through three unique brands targeting different segments of the college student population. The Grove® brand offers more traditional apartment floor plans and focuses on customer service, privacy, on-site amenities and a proprietary residence life program. The Copper Beech brand and townhome product offers more residential-type living to students looking for a larger floor plan with a front door and back porch. The evo brand provides urban students with a luxury student housing option with all the conveniences of city living. Additional information can be found on the Company's website athttp://www.campuscrest.com/.

Forward-Looking Statements

This press release, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. 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. Forward-looking statements in this press release include, among others, the performance of properties in occupancy and yield targets, outlook and guidance for full year 2014 FFOA and the related underlying assumptions, growth and development opportunities, leasing activities, financing strategies, and development and construction projects. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company’s control that may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect the Company’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, except as otherwise required by federal securities laws, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statements, see the risk factors discussed in the Company’s most recent Annual Report on Form 10-K, as updated in the Company’s Quarterly Reports on Form 10-Q.

Contact:

Thomas Nielsen, Investor Relations

(704) 496-2571

Investor.Relations@CampusCrest.com

CAMPUS CREST COMMUNITIES

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in $000s)

	December 31,			December 31,
	2013			2012

Assets
Investment in real estate, net:
Student housing properties	$	716,285		$	669,387
Accumulated depreciation		(102,356	)		(97,820	)
Development in process		91,184			50,781
Investment in real estate, net		705,113			622,348
Investment in unconsolidated entities¹		324,838			22,555
Cash and cash equivalents		32,054			5,970
Restricted cash ²		32,636			3,902
Student receivables, net		2,825			2,193
Cost and earnings in excess of construction billings		42,803			23,077
Other assets, net		42,410			16,275
Total assets	$	1,182,679		$	696,320

Liabilities and equity
Liabilities:
Mortgage and construction loans	$	205,531		$	218,337
Line of credit and other debt		207,952			75,375
Accounts payable and accrued expenses		62,448			45,634
Construction billings in excess of cost and earnings		600			49
Other liabilities		11,166			12,023
Total liabilities		487,697			351,418
Equity:
Preferred stock	$	61		$	23
Common stock		645			386
Additional common and preferred paid-in capital		773,896			377,180
Accumulated deficit and distributions		(84,142	)		(37,047	)
Accumulated other comprehensive loss		(71	)		(58	)
Total stockholders' equity		690,389			340,484
Noncontrolling interests		4,593			4,418
Total equity		694,982			344,902
Total liabilities and equity	$	1,182,679		$	696,320

¹As of December 31, 2013, includes the Company’s investment in Copper Beech equating to a 67.0% effective ownership interest in 30 properties.

²As of December 31, 2013, includes approximately $26,700 of cash held in escrow from the sale of the four properties on December 27, 2013.

CAMPUS CREST COMMUNITIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in $000s, except per share data)

	Three Months Ended December 31,									Twelve Months Ended December 31,
	2013			2012			$ Change			2013			2012			$ Change

Revenues:
Student housing rental	$	23,518		$	20,502		$	3,016		$	87,635		$	71,211		$	16,424
Student housing services		972			703			269			3,615			2,880			735
Development, construction and management services		10,494			11,133			(639	)		51,069			54,295			(3,226	)
Total revenues		34,984			32,338			2,646			142,319			128,386			13,933
Operating expenses:
Student housing operations		10,974			8,950			2,024			40,346			32,633			7,713
Development, construction and management services		8,360			10,234			(1,874	)		46,759			50,493			(3,734	)
General and administrative		2,667			2,320			347			10,658			8,821			1,837
Transaction costs¹		286			-			286			1,121			-			1,121
Ground leases		88			54			34			249			217			32
Inpairment of unconsolidated joint venture²		312			-			312			312			-			312
Depreciation and amortization		6,547			5,551			996			23,700			20,693			3,007
Total operating expenses		29,234			27,109			2,125			123,145			112,857			10,288
Equity in earnings (loss) of unconsolidated entities^{3, 4}		(7,335	)		78			(7,413	)		(3,727	)		361			(4,088	)
Operating income		(1,585	)		5,307			(6,892	)		15,447			15,890			(443	)
Nonoperating income (expense):
Interest expense, net⁵		(4,204	)		(3,150	)		(1,054	)		(12,969	)		(11,545	)		(1,424	)
Other income⁶		(5	)		(175	)		170			1,414			6,144			(4,730	)
Total nonoperating expense, net		(4,209	)		(3,325	)		(884	)		(11,555	)		(5,401	)		(6,154	)
Net income before income tax benefit (expense)		(5,794	)		1,982			(7,776	)		3,892			10,489			(6,597	)
Income tax benefit (expense)		420			(26	)		446			727			(356	)		1,083
Income from continuing operations		(5,374	)		1,956			(7,330	)		4,619			10,133			(5,514	)
Income (loss) from discontinued operations⁷		(3,966	)		312			(4,278	)		(3,001	)		665			(3,666	)
Net income		(9,340	)		2,268			(11,608	)		1,618			10,798			(9,180	)
Net income (loss) attributable to noncontrolling interests		(88	)		8			(96	)		(34	)		46			(80	)
Dividends on preferred stock		2,733			1,150			1,583			6,183			4,114			2,069
Net income (loss) attributable to common stockholders	($	11,985	)	$	1,110		($	13,095	)	($	4,531	)	$	6,638		($	11,169	)

Net income (loss) per share attributable to common stockholders - Basic and Diluted:	($	0.19	)	$	0.03					($	0.08	)	$	0.19

Weighted average common shares outstanding:
Basic		64,503			38,479						59,984			34,781
Diluted		64,937			38,994						60,418			35,217

¹For the three months ended December 31, 2013, includes $286 of Copper Beech-related transaction costs. For twelve months ended December 31, 2013, includes $1,070 of Copper Beech-related transaction costs and $51 of Toledo, OH-related transaction costs.

²For the three and twelve months ended December 31, 2013, represents a $312 impairment at The Grove at Denton for which the Company acquired its joint venture partner's interest in January 2014.

³For the three and twelve months ended December 31, 2013, includes results from the Company’s investment in Copper Beech. The Company made its initial investment on March 18, 2013 and subsequently made additional investments. On September 30, 2013, the Company entered into an amendment to the purchase and sale agreement that, subject to receipt of required third-party lender consents, enabled the Company to acquire a 67% ownership interest in 30 properties, while deferring ownership in 7 properties until the Company exercises future purchase options. As of December 31, 2013, the Company held a 67% effective interest in 28 operating and 2 non-operating properties.

⁴For the three months and twelve months ended December 31, 2013, includes $906 in transaction costs related to evo à Square Victoria.

⁵For the three and twelve months ended December 31, 2013, includes an approximate $236 non-cash charge related to the write-off of unamortized deferred financing fees. For the three and twelve months ended December 31, 2012, includes an approximate $6 and $966, respectively, non-cash charge related to the write-off of unamortized deferred financing fees.

⁶For the twelve months ended December 31, 2013, includes interest income from the 8.5%, $31,700 loan made to existing investors in Copper Beech on March 18, 2013. In conjunction with the September 30, 2013 amendment to the purchase and sale agreement, the $31,700 loan was repaid by Copper Beech.

⁷For the three and twelve months ended December 31, 2013, includes a $4,729 impairment from the dispostion of The Grove at Jacksonville, The Grove at Jonesboro, The Grove at Wichita, and The Grove at Wichita Falls on December 27, 2013.

CAMPUS CREST COMMUNITIES

RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS TO FUNDS FROM OPERATIONS ("FFO") & NET OPERATING INCOME ("NOI") (unaudited)

(in $000s, except per share data)

	Three Months Ended December 31,								Twelve Months Ended December 31,
	2013			2012		$ Change			2013			2012			$ Change

Net income (loss) attributable to common stockholders	$	(11,985	)	$	1,110	$	(13,095	)	$	(4,531	)	$	6,638		$	(11,169	)
Net income (loss) attributable to noncontrolling interests		(88	)		8		(96	)		(34	)		46			(80	)
Impairment of disposed assets¹		4,729			-		4,729			4,729			-			4,729
Impairment of investment in unconsolidated joint venture²		312			-		312			312			-			312
Gain on purchase of joint venture properties³		-			-		-			-			(6,554	)		6,554
Real estate related depreciation and amortization		6,910			6,202		708			25,503			23,521			1,982
Real estate related depreciation and amortization -
unconsolidated entities		14,354			378		13,976			23,271			1,731			21,540
FFO available to common shares and OP units^{4, 5, 6}		14,232			7,698		6,534			49,250			25,382			23,868
Elimination of transactions costs		286			-		286			1,121			-			1,121
Elimination of transactions costs included in equity in earnings		-			-		-			906			-			906
Elimination of write-off of development costs		175			-		175			175			-			175
Elimination of FV adjustment of CB debt		(1,411	)		-		(1,411	)		(3,576	)		-			(3,576	)
Elimination of non-cash charge from the write-off of
unamortized deferred financing fees		236			6		230			236			966			(730	)
Funds from operations adjusted (FFOA) available to common
shares and OP units	$	13,518		$	7,704	$	5,814		$	48,112		$	26,348		$	21,764

FFO per share - diluted^{4, 5, 6}	$	0.22		$	0.20	$	0.02		$	0.82		$	0.72		$	0.10
FFOA per share - diluted	$	0.21		$	0.20	$	0.01		$	0.80		$	0.75		$	0.05
Weighted average common shares and OP units outstanding - diluted		64,937			38,994					60,418			35,217


	Three Months Ended December 31,						Twelve Months Ended December 31,
	2013¹			2012¹			2013¹			2012¹

Net income (Loss) attributable to common stockholders	($	11,985	)	$	1,110		($	4,531	)	$	6,638
Net income (Loss) attributable to noncontrolling interests		(88	)		8			(34	)		46
Preferred stock dividends		2,733			1,150			6,183			4,114
Income tax benefit (expense)		(420	)		26			(727	)		356
Other income (expense)²		5			175			(1,414	)		(6,144	)
(Income) loss on discontinued operations		3,966			(312	)		3,001			(665	)
Interest expense		4,204			3,150			12,969			11,545
Equity in earnings of unconsolidated entities		7,335			(78	)		3,727			(361	)
Depreciation and amortization		6,547			5,551			23,700			20,693
Impairment of investment in unconsolidated joint venture		312			-			312			-
Ground lease expense		88			54			249			217
General and administrative expense		2,667			2,320			10,658			8,821
Transaction costs		286			0			1,121			-
Development, construction and management services expenses		8,360			10,234			46,759			50,493
Development, construction and management services revenues		(10,494	)		(11,133	)		(51,069	)		(54,295	)
Total NOI	$	13,516		$	12,255		$	50,904		$	41,458
Same store properties NOI⁷	$	11,221		$	12,255		$	35,046		$	35,875
New properties NOI⁷	$	1,531		$	0		$	14,293		$	5,583
The Grove at Pullman & Toledo NOI⁸	$	764		$	0		$	1,565		$	0

¹For the three and twelve months ended December 31, 2013, represents a $4,724 impairment from the dispostion of The Grove at Jacksonville, The Grove at Jonesboro, The Grove at Wichita, and The Grove at Wichita Falls on December 27, 2013.

²For the three and twelve months ended December 31, 2013, represents a $312 impairment at The Grove at Denton for which the Company acquired its joint venture partner's interest in January 2014.

³For the three and nine months ended December 31, 2012, represents a $6,554 gain from the purchase of our joint venture partner's interest in The Grove at Valdosta and The Grove at Moscow.

⁴For the three and twelve months ended December 31, 2013, includes results from the Company’s investment in Copper Beech. The Company made its initial investment on March 18, 2013 and subsequently made additional investments. On September 30, 2013, the Company entered into an amendment to the purchase and sale agreement that, subject to receipt of required third-party lender consents, enabled the Company to acquire a 67% ownership interest in 30 properties, while deferring ownership in 7 properties until the Company exercises future purchase options. As of December 31, 2013, the Company held a 67% effective interest in 28 operating and 2 non-operating properties.

⁵For the three months ended December 31, 2013, includes $286 of transaction costs, the write-off of $175 of development costs and a $1,187 fair value adjustment of Copper Beech’s debt. For twelve months ended December 31, 2013, includes $2,027 of transaction costs, the write-off of $175 of development costs and a $3,352 fair value adjustment of Copper Beech’s debt.

⁶For the three and twelve months ended December 31, 2013 and 2012, includes non-cash charges related to the write-off of unamortized deferred financing fees associated with construction debt paid-off prior maturity.

⁷"Same store" properties are our wholly-owned operating properties acquired or placed in-service prior to the beginning of the earliest period presented and owned by us and remaining in service through the end of the latest period presented or period being analyzed. "New properties" are our wholly-owned operating properties that we acquired or placed in service after the beginning of the earliest period presented or period being analyzed.

⁸For the three and twelve months ended December 31, 2013, includes NOI contribution from the operations of The Grove at Pullman and the Toledo, OH-redevelopment, as well as business interruption insurance proceeds from The Grove at Pullman.

Non-GAAP Financial Measures

FFO and FFOA

FFO is a non-GAAP financial measure. We calculate FFO in accordance with the definition that was adopted by the Board of Governors of NAREIT. FFO, as defined by NAREIT, represents net income (loss) determined in accordance with U.S. GAAP, excluding extraordinary items as defined under GAAP and gains or losses from sales of previously depreciated operating real estate assets, plus specified non-cash items, such as real estate asset depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. In addition, in October 2011, NAREIT communicated to its members that the exclusion of impairment write-downs of depreciable real estate is consistent with the definition of FFO.

We use FFO as a supplemental performance measure because, in excluding real estate-related depreciation and amortization and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating expenses. We also believe that, as a widely recognized measure of the performance of equity REITs, FFO will be used by investors as a basis to compare our operating performance with that of other REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions nor the level of capital expenditures necessary to maintain the operating performance of our properties, all of which have real economic effects and could materially and adversely impact our results of operations, the utility of FFO as a measure of our performance is limited.

While FFO is a relevant and widely used measure of operating performance of equity REITs, other equity REITs may use different methodologies for calculating FFO and, accordingly, FFO as disclosed by such other REITs may not be comparable to FFO published herein. Therefore, we believe that in order to facilitate a clear understanding of our historical operating results, FFO should be examined in conjunction with net income (loss) (computed in accordance with U.S. GAAP) as presented in the consolidated financial statements included elsewhere in this document. FFO should not be considered as an alternative to net income (loss) (computed in accordance with U.S. GAAP) as an indicator of our properties’ financial performance or to cash flow from operating activities (computed in accordance with U.S. GAAP) as an indicator of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions.

FFOA is a non-GAAP financial measure. In addition to FFO, we believe it is also a meaningful measure of our performance to adjust FFO to exclude the write-off of unamortized deferred financing fees, transaction costs, the write-off of development cost and fair value debt adjustments on equity method investments. Excluding the write-off of unamortized deferred financing fees, transaction costs and fair value debt adjustments on equity method investments adjusts FFO to be more reflective of operating results prior to capital replacement or expansion, debt service obligations or other commitments and contingencies.

NOI

NOI is a non-GAAP financial measure. We calculate NOI by adding back (or subtracting from) to net income (loss) attributable to common stockholders the following expenses or charges: income tax expense, interest expense, equity in loss of unconsolidated entities, preferred stock dividends, depreciation and amortization, transaction costs, ground lease expense, general and administrative expense and development, construction and management services expense. The following income or gains are then deducted from net income (loss) attributable to common stockholders, adjusted for add backs of expenses or charges: equity in earnings of unconsolidated entities, income tax benefit, other income, and development, construction and management services revenue. We believe these adjustments help provide a performance measure, when compared year over year, that illustrates the operating results of our wholly-owned properties and captures trends in student housing rental and services income and student housing operating expenses.

NOI excludes multiple components of net income (loss) (computed in accordance with U.S. GAAP) and captures neither the changes in the value of our properties that result from use or market conditions nor the level of capital expenditures necessary to maintain the operating performance of our properties, all of which have real economic effects and could materially and adversely impact our results of operations. Therefore, the utility of NOI as a measure of our performance is limited. Additionally, other companies, including other equity REITs, may use different methodologies for calculating NOI and, accordingly, NOI as disclosed by such other companies may not be comparable to NOI published herein. Therefore, we believe that in order to facilitate a clear understanding of our historical operating results, NOI should be examined in conjunction with net income (loss) (computed in accordance with U.S. GAAP) as presented in the consolidated financial statements included elsewhere in this document. NOI should not be considered as an alternative to net income (loss) (computed in accordance with U.S. GAAP) as an indicator of our properties’ financial performance or to cash flow from operating activities (computed in accordance with U.S. GAAP) as an indicator of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions.

Campus Crest Communities Inactive 8-KCCG Announces 2013 Results and Provides Initial 2014 Financial Outlook