Exhibit 99.2
Exchange at Gainesville
Statements of Revenues and Certain Expenses
Quarter ended Year ended
March 31, 2005 December 31, 2004
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(unaudited)
Revenues:
Rents $1,510,634 $6,008,089
Other income 59,266 164,148
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Total revenues 1,569,900 6,172,237
Certain expenses:
Real estate taxes 115,069 483,378
Property operating expenses 538,404 2,253,152
Management fees 47,187 185,249
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Total certain expenses 700,660 2,921,779
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Revenues in excess of certain expenses $ 869,240 $3,250,458
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See accompanying notes to financial statements
Exchange at Gainesville
Notes to Statements of Revenues and Certain Expenses
For the Year Ended December 31, 2004, and the Quarter Ended March 31, 2005
1. Basis of Presentation
Presented herein are the statements of revenues and certain expenses related to
the operation of the student housing property owned during 2004 and 2005 by a
certain limited liability company managed by the Exchange at Gainesville (the
"Property). The Property consists of 396 units and 1,044 beds located in
Gainesville, Florida. In March 2005, American Campus Communities, Inc., through
subsidiaries of its operating partnership, American Campus Communities Operating
Partnership LP, acquired the Property.
The accompanying financial statements have been prepared in accordance with the
applicable rules and regulations of the Securities and Exchange Commission for
the acquisition of real estate properties. Accordingly, the financial statements
exclude certain expenses because they may not be comparable to those expected to
be incurred in the proposed future operations of the Property. Items excluded
consist of interest and depreciation and amortization not applicable to future
operations.
2. Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.
3. Rental Revenue Recognition
Students are required to execute lease contracts with payment schedules that
vary from single to monthly payments. Rental income is generally recognized on a
straight-line basis over the terms of the leases.
4. Management Fees
The Property was managed by a third-party management company, pursuant to an
agreement which provided for management fees of 3% of monthly gross revenues
earned, as defined. Management fees of approximately $185,000 and $47,000 for
the year ended December 31, 2004 and for the quarter ended March 31, 2005,
respectively, were incurred.
5. Interim Unaudited Financial Information
The statement of revenues and certain expenses for the quarter ended March 31,
2005 are unaudited; however, in the opinion of management, all adjustments
(consisting solely of normal recurring adjustments) necessary for a fair
presentation of the statement of revenues and certain expenses for this interim
period have been included. The results of the interim period are not necessarily
indicative of the results to be obtained for a full fiscal year.