ACC - Earnings call transcript Q3 2017 | American Campus Communities Inc

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Operator

Good day, and welcome to the American Campus Communities 2017 Third Quarter Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Ryan Dennison. Please go ahead.

Ryan Dennison

Thank you. you conference the call. thank XXXX Campus and quarter third morning for American joining Communities Good The X-K to audience. to release provide press is access the furnished widest on Form possible measures has accordance in Reg G the Company GAAP with the release, directly comparable the non-GAAP In financial to requirements. those measures reconciled

release, Company releases. supplemental americancampus.com a you find you package. will Investor in If the the Relations you not website Also section the on Relations section for for which a have Investor a hosting available call do website available webcast press posted can financial the the on Company's live in month. of under copy replay the it's website We're on one with today's the access at

you of of Exchange this of XXA which one Our Act you the supplemental and in forward-looking facts XXXX, Act amended not the historical SEC Private of Section and like and forward-looking conference be and to the financial of during that deemed advanced may the inform facilitate statements Webcast to statements Management are may in package release, would and analyst will Section by be statements XXXX. slides the today by Securities Securities call, package same. the and within certain Securities XXE of XXXX be made are disclosure meaning along. press Reform presentation the Management as following referenced making Act filings. supplemental as our the in webcast Litigation

Officer; risks results that SEC. time to could may and time or Having expectations after in for periodic Company's events and to will forward-looking cause members Officer; like or The undertakes materially this of can Bayless, the release. Chief opening results that, Jim the update from the Officer; the Financial Hopke, Chief and us remarks. said would Management in the achieved statement no the Bill I statements The call. to Investment Kim Factors advise from Chief Operating vary. William filings now Jennifer to to Accounting press Officer. release assumptions, any Company are circumstances are that, uncertainties. Beese, Perry, forward-looking Company Voss, Executive and obligation actual Officer; any that differ based risks Company detailed Bill? with Daniel Bill reflected Chief are will joining Senior economic to call the Talbot, introduce reflect reasonable believes assurance his for Chief they be President; its I With in no Although on of the subject over date provide expectations expectations the to turn and actual

Bill Bayless

prior night, have all will which internal our and/or last the and and associated financial for operational guidance detail with in operational in the led meet with not nonrecurring Ryan. Hurricanes in you, coupled did with the thank financial discuss to items quarter two we us other Daniel's of the third remarks. the announcement as lease-up third earnings range quote discussed expectations. our in and the of results of Harvey XXXX. detailing Good Thank our fall Consistent discuss results for joining Irma, morning the for and our you timing his Daniel results This, prepared related quarter release updated expenses

housing to allocation and like strategic they XXXX, broader to capital academic student XXXX fundamentals. we the also I'd provide may Before brief related insights plan the implementation the of the I'd lease-up business get strategy. like correlate started, results of how year to address our and

occupancy revenue was target rental of full and basis occupancy lease-up XXth rate fell fall while at our within it While a XX rental below midpoint guidance our our our the It was XXX growth. X.X% it rental points and and year at same growth range the year, rate of prior with in occupancy led basis XX.X% behind guidance. the provides points industry the store straight

late September markets, and in Texas, the shortfall rate in update, and entirely Rochester discussed in we press rental occupancy As Illinois, release Lubbock attributed our rental New Champaign the to three revenue can York. prior-year variance be

XX short-term XXXX remaining gain occupied, is new currently XX.X% same year over for rate our X.X%. store are improved performance same-store markets points providing growth address Our of plan saw XX.X% those to assets QX the and XX of achieved moving basis briefly revenue corresponding to of business representing supplies 'XX XXXX. which fundamentals store for can like now challenges as that underperformance these When the growth long-term prior academic the markets the our groupings capital nationally at occupancy 'XX, The an reflects XX% occupied, XX and our rental new property sound in markets, currently while markets a strong sector, arise in the the the into the that strategic combining strategy. continue impact into three speaks status I’d in absorbed. and lease-up and of allocation rental year opportunity

since development our being those on each with outside preached and hopefully three, that we've investment securing you focus As one; within barriers who new of on particular the place rental to the know, locations campus. followed with product two, differentiation are and/or affordable and locations X pedestrian the fundamentals entry universities; the market have where in distance our IPO between diversified of to flagship company bicycle located always of Tier focused takes markets criteria and a versus sub rates us

fundamentals. back ago, decade you the of If just go Campus stood in American alone a core belief these

not public of growth when we usually during undertook portion transactions, the consolidator, portfolio were such, larger with company consistent a had market and fundamentals. and to of assets always take As own these that decade as inherent the we as industry to a our first our selection

American transformed a theses As of stream entire X the markets investment true where Campus' assets the rental in investment throughout rental force. Tier major in same-store results our to bedrock producing consistently now meet now for has trading that years, become industry the criteria core Cap criteria investment and industry-leading fundamentals in growth, for our revenue rates held NOI the rate, the stable industry with

to three five opportunity last industry proprietary strategy. the implementing in the of strategic plan emerging investment our all criteria. more developments new capital our growth competitor's business corresponding with provides meet ACCs more platform intelligence maturation us to allocation be the nearly discriminate with coupled opportunity This -- and Over now years, sophisticated even our and

of high-yielding into pipeline. last development over X.XX for allowing ranging our these to know, several disposed sales nearly from acquired As non-bicycle cap taking you larger non-pedestrian of M&A rates all in at X.XX we've previously locations, place years the our accretive reinvestment transactions,

growth of comprised acquired acquisitions, the left of opportunity core this especially Within advantage disposition to recycling, of non-core versus XX-XX While take cap capital ACC developed our for has given we higher-quality to-data current that is assets rate portfolio, believe these higher-quality us there two assets. accretive a environment of core been assets the of approximately for market of a thirds remains with portfolio opportunity the the significant has assets assets.

competitor's owned new such, over outright we our development the have As especially some of in areas presale of it the to is the years venture, opportunities, intent to created of growth developments. the and accretive purchase higher fund joint sale the monetize value or

classification We intend multiple identify to the to markets value lead leverage growth these higher is and accordingly, one the housing that expand of stability some of the to more has universities in gaining long-term likely to now proactively profiles. utilize five investment reflected platform that of our in predominantly operating those conference have market maturation will also on not classified that strategic schools and our these this and one focus evolution institutions both Overtime, the market as power education. or highest do that exit our currently rate intelligence where discriminating first offer sector. a focus target Carnegie to relates are market our we Our of asset residential in research the of intend fit occurring selection This institutions while We of cap been markets creation efficiencies. demand, degree and share growth. through business greatest believe in then we

these emerging fact. market harvest us intelligence our appropriate take to proactively advantage growth to proprietary versus also reinvest higher unique those with provide conditions Once platform to reacting same the operating seek and markets. trends value to business of future Within opportunities in opportunity and again, our believe as we'll markets, when in we market

allocation look with to this of cost strategy with we implement market core follows. from capital as conjunction X% current conditions ranging decisions our in we market our As and prioritize rates current to X%, cap capital

development, both for each ranging on campus program X.XX First, campus RAAs owned X.XX. and with off from yields to stabilized the

yields include cap current The rates. development announced these value at some this pre-sale of thesis opportunities yields spread to a X.XX growth strategy. refined only created market to component is improve accretive core By presale provide purchases rates, to stabilized strategically that market initial X.XX, the they prospects. capital harvesting the portfolio investment cap significant each basis initial with in within from XXX of transaction investment Second, allocation internal current stabilized ranging spaces our should consistent recently with our and further point acquisition and is XX opportunities at third development when

target provide offers nominal refined just property exemplifies of stabilized a the accretive efficiencies accretive consistent XXX presale spread the ventures As in markets yield at five of in that come greatest rates of basis opportunities, believe cap those strategy, market markets includes component the of X.X% funding consummated our future share multiple transaction with sales form market enables the growth a to upon builds significant asset market XX or to our joint in development expansion the point seven discussed. expected and we with

valuation will activities dislocation upon to most going the were acquisitions in in a available this versus us allows own sense attractive between components to opportunistic forward, assets. position expect the most of simply in target our that Based year, our do plan do disconnect, valuation, XXXX on public market the and private time. be include we recycling to remain at us the maintaining be capital us committed to not presale maintain leverage undertaken balance this market allowing this source of current balancing sheet the attractive to make as capital development executing sources of opportunities of and place we that upper Our public higher-yielding significant deleveraging execute With XX%. private prior and not to an using arose are growth the they XXXX

focused to to development purchases, With discuss the As where appropriate to market our quarter. stabilized they significant when I'll a current yield capital allocation such, presale rates. cap the turn current development, only over it acquisitions an for component include Jim presale results development strategy spread again our that, provides is operational and on blended

Jim Hopke

Thanks Bill.

LoftsXX hurricanes that was results, water leasing declining as operational and landscaping was challenging expenses. and real first which Tampa our revenue third for to would operating roofing as of and were offset same-store and and third expenses to million the as factors to fire injuries the of many were for than due quarter, related We no to in related in Hurricanes of by the and a limited quarter expectations. staff results Champaign the which fees intrusion, generally insurance Expenses Harvey X the revenue, increase our and Turning of well a resident to affecting excluding in properties summer the we related Page X.X% the the that on have hurricane compared our lost above have and were the impacted repairs. this supplemental, in consulting markets. in X% damage fortunate experienced cleanup, our but utilities increased expenses we our These quarter was quarter by were the third increase of final expected forecast reported estate payroll, out Irma lower in by quarter our noted quarter we've Texas in Province noted than to by third Florida in nonroutine of to $X.X that unit more primary maintenance. X.X% NOI and tax NOI On a X.X% $XXX,XXX relative XXXX service Bill and

Excluding would have X.X%. uncontrollable quarterly expense growth costs, been these two only

XX% owned that Turning supply and projecting markets, in delivered are supply, new will beds XX XX,XXX in we XXXX to XX,XXX a XXXX. ACC's be representing decrease from X% for to between of

and on where are This we those supply year, We always have new and presence. markets, we of Austin, only Tallahassee, College anticipating include XX markets our focus XX markets significant Station. in as

from was X.X% properties year portfolio XXXX-XXXX on our and highlighted, September range for academic a year Bill rate-setting on our As XXXX-XXXX the same-store initial XX, to academic same-store in produce exercises are occupancy to rental XX.X% and projections, occupied X%. expected increases revenue based these

market On our improve I'll our long cost over should margins the William. over that regarding We the updating the implement fourth expense side, we forward With asset operating management expectations. and to continue call guidance term. look additional the initiatives to the of to call controls quarter drive turn specifics that on

William Talbot

Thanks Jim.

Turning seven higher hub three high announced have the core exercised option Class assets, spaces quality in including yielding presale transaction first developments. September, pedestrian to recently acquired on totaling which features to the The portfolio pleased include core beds, the we're A X,XXX assets, Seattle. four

offer five In of transaction, addition, growth total, we average assets are The markets X.X% served believe Via located the the rental thesis. presale in in average in growth campus one transaction located XXXX averaged and this total all over rate beds. universities XX.X% ACC XXXX deliver of three X.X those age to and consistent that markets. will miles occupancy year assets the as existing In we market XX,XXX. are markets under also portfolio ACC target enrollment investment in expand includes assets an we refined share in some that greatest year potential, our with the and

we efficiencies core assets the a basis multi-asset cap Upon through XX in represents for X.X% addition, have X.X% a we year nominal similar yield academic points which pedestrian completion yield are anticipating spread markets. and opportunity markets. stabilization, existing and stabilized economic similar XXXX in over XXX to expansion the rates for In for the five

$XXX XXXX million. successfully Turning and totaling next in We of development development. own a time cost XX to developments beds XXXX delivered August, on

under We are construction. currently

spaces and X.X% final of for developments XXXX predevelopment presales nominal the between a X.XX developments three own delivery X.X% XX targeting on in with and projects to to $XXX XXXX core for and all including We’re developments stages presale X% totaling the for on presales. XXXX and yield beds million

beds cost has Sciences our to $XX successful which maintained The announce the for project is and are XXX executed of ACE In already and highly the Southern Health occupancy will and of A&M addition, University Campus. in fall. opening next share predevelopment amenities pleased of University fall existing regards San consists new and The is million projects With development, over third-party a of project next phase out fall second on agreement XXX% total we Texas phase the we've be phase currently XXXX. on operated XX% development Corpus first California on applied completed for Christi fall XXXX. the open we our for and under of delivery campuses to are phase Irvine California two and Antonio targeted to in construction this development we fourth on-campus at of campus since of

currently remain to and potential campus procurements and are nearly PX addition, under tracking in both XX in construction the in for University continues completed cost X.X Overall, recently of the for billion In currently of on Illinois dozen party partnerships future in of Arizona strong. on the predevelopment public and are interest development. on Chicago or projects We we the XX,XXX predevelopment and construction fourth campuses and third beds developments expect commence the totaling University development at activity quarter. to are three on private

first the improvements rate technology, of X.X% our upfront to via million achieve now X.X% October, cap a Washington density enhancements includes that rate economic to nominal in Turning TWELVE rights cap for X.X% and lease and @XXth. of three. the highly ACE Seattle faculty the shared June an In nominal of market is to at with making The for Upon strategy in year. the adjacent acquired stabilized in and essentially stabilization year we project under the a capital on-site the leasing would for some levels for amenity current budgeted Washington year, asset acquisition. continued XXX XX% based on immediately acquisition represent acquisition X.X% accommodations, ground and University with the priority and After rate branding of first further University bed desirable and assistance, economic a this located expected $X.X acquisitions. expansion U cap long-term occupancy of the District marketing staff increased successfully at of is Bridges other purchase to FF&E upgrades of

for In our for addition, an efficiencies. points to basis multi-asset additional assets of through there's XX opportunity XX Seattle yield three

of billion quarter the development in of student overall the primarily the market, our CBRE's the near-term Seattle third to market within significant will housing, regards quarter investment student $X third transaction to overview According student demand. product With over predevelopment growing market on for pipeline XXXX. core transacted has remains the sector housing portfolio sales high and of expansion completion the strategy With housing focus to our our spaces and on focusing opportunities.

number up under today million close quarter, sector purchase to institutional volume I'll make expected in are Campus brokers buyers of $X the and discuss Street's the large XXXX to strong levels or the that, fundamentals meet transaction Harrison to of fund results. demand will exceed the the based of contract entity transaction our and currently the in financial Crest. excluding With now in most when continued that industry. indicating over on of record assets investment fourth half anticipating strong of for XXXX over it volume of Daniel turn With International,

Daniel Perry

Thanks William.

quarter third $X.XX reported FFOM per share. $XX.X of of fully diluted XXXX million For the or we total

on annual additional earnings impacted negatively events $X.XX. been also that the this of had approximately $X.XX an had share, negative discussed lease-up the that quarter While unusual results quarter had a the impact two we per by of

were quarter noted, following Hurricanes $X.X Harvey As Irma repairs this the and previously cost of million.

$XXX,XXX We and to property interest the being lender also final transfer record common currently on while receivership the in blank non-cash approximately had settled. of is

were this expense expenses, growth we million X% increased approximately quarter same-store what $X we or achieved. the in $X.XX although and expenses ultimately excluding only Finally, targeting less operating hurricane

in versus were primary taxes, goals we saw the and where nonroutine overages expense costs. maintenance As Jim our repairs and property areas mentioned,

X.X% While in same-store unexpected in expense for we say we overages it efficiency assumed success areas. targeted in control the leave that with expense have controllable had ourselves and fair room to guidance, less be enough initiatives X growth to the these cost we annual didn't would

of the portfolio. net of Moving initial existing bond housing pipeline. From as core during our or was joint from high $XXX the term and for funding to for sheet in a vehicle staggered capital core value long-term years next asset was on the over we loan planned perspective, run in debt select management in XXXX monetize and via to on the of capital as to on around rate X.X asset capital taking capital both disclosed structure, timing perspective total financing timing we allows capacity as management very this, to to on are well the flexibility to September health of venture of quarter us core was Page capital an any have supplemental, allocation long-term approximately originally portfolio the allocation, the our XXX value to Also capital funding with pursue environment attractive assets we million debt in With as the of to two demand times. funding enterprise student the to a the the value position continually from as balance of the transaction, XX.X%. the XX.X% partnerships XX%. of the good spaces phase interest of advantage Debt of the manage investment sources a light globe. a growth XX, EBITDA to thereby In company's closed the an private disposition interim balance portfolio accelerated we our million core for off million of rate the to take of leads later most regards the end risk as in us development seeing table. This our year XXX execute target plan offering intends sheet to spaces ample upper our debt XX

our share we semester our and low to as to a results in year-to-date or our growth end are expectation results below outlook. for of the million and Hurricanes to factors now for above new external expect of Harvey The this same the levels $X lease-up well is capital $X.XX fully Turning XXXX first, expectations academic for than of expected per year, into of result and 'XX the originally impacts revising to regards as reduction on $X from follows; academic the as consideration this our lease-up range in $X.XX XXXX $X.XX slightly financial costs at years of our midpoint cause final 'XX less our were activity, the store transactional have Taking to guidance and the for year store share. approximately the to With diluted the slightly or guidance fall properties, FFOM occupancy properties. repair impact guidance. low per primary the that end and our revenue anticipated the for This approximately million negative Irma, the the to we guidance. are $X.XX

was start on detailed supplemental. expectations XX along will net in to and to changes lost guidance back operator of items we the the in Next, guidance our to interest to not in $X earnings we offering $X.X lender be non-cash midpoint of XXXX. to the included in while NOI at had guidance other in with than approximately or back will or result recorded. unsecured non-core the expense to originally question-and-answer portion neutral original additional and turn the the interest $X.XX in year, finally, we These to $X.XX the With excess for And Valdosta components guidance were months an million it earlier in are common call. included a that original result decision that bond it of expense I'll Georgia blank property that, transfer two our contemplated executed the which million earnings in ultimately on Page of our

Operator

come will [Operator Instructions] question first ahead. our Nick And Please Joseph from go of Citi.

Nick Joseph

asked should And in what few going strategy question expect earnings last is the growth in your model how capital know to and allocation in what's not this investor context to I XXXX. years of evaluate and forward? Bill, working you just performance happened business the wanted see current

you if this core So X.XX is and the at X.XX midpoint. go be XXXX back core expected is FFOM year FFOM to to

So Over acquisitions, period same-store X over it's growth. $X four FFO about NOI assets billion you've of of FFO minimal total delevered that I billion but X% years and and recognize over there's you done developments averaged sold core time growth been still the and X% about growth. very core of

Bill Bayless

to biggest FFOM the on a share position the growth is that per drag on to sales the the asset plan. Certainly indeed driver in took the deleveraging put activities us the and to execute place

And creating portfolio believe growing the term following the create value the thoughtfully earnings to deleveraging net core in Certainly large so plan FFOM the long-term a focus the long we like and and to would the produce. follow that per asset share in delay that was of certainly been share in in perspective. has The to that be terms value continues creation. will meaningful we always per in

at aspect where very make. you look those in a business in are of very cycle the are driving other markets, usually the you that in when we housing when real For been in us when level that growth making. the sector when a and we hit in is and complex capital those sectors bit of are little you we say opportunities in touching terms look and each brake growth housing easy business level mature purpose cycle, built gas, little the also the you the you what of markets the the student at and the and but be the much marketplace, where and our is uniqueness, and and and housing student to company very terms about we purpose of in wide recently that, when we so in, unison, we it talk operate in a and from answers first the macro our in X% allocation at hit of more remarks XX estate market you the to Seattle the enrollment. the percent say real the and at bit most the demand are rate we In located opportunistic acting opportunities the supply Washington think in supply you of University the of well declines a of the don’t markets opportunity competitive talking allocation When a us look real the underserved one about about has and of of when a perspective have we which that about cycle and here should move incredible our things unique hear of range, decision major our typically an business, to heard influence have most That at future to markets, which when more beds you to capital in student we've modernization in opportunity, we big and in demand amount as being is multifamily provides built that see a decision REITs - other tends clear of that estate. think estate of XX of and unison

their one Station up that On the ranging like in side and even markets, growth in potential and It have to product don't a number each markets, higher can the various act types flip some income have of look within streams. when those this of where variation and those now maturing XX%. institutions unison. in And the Austin level is you you College is campus at that within they also assets

of in heard many in to very decisions proper the where what opportunity broke then in we market and last harvest that levels and growth higher in opportunity capital you of terms allocation we're we’re of growth And may based that to reinvest the has And asset the in, capital much so more much Certainly capacity cases understanding when the for things the an internal greater we the using - growth, couple harvest that comments is, opportunities preserve and we we at opportunity function, of intelligence it especially greater terms months external need over core we we creation. the an much opportunity what statement the asset significant certain are foremost at and have yield always it the And that we the a especially of look to about and directly and of upon value growth asset and is ability is, the is to it and private public the example. to and that people to rental one opening times terms yields assets remarks that market like to certainly growth done is on I the on-campus But highest that value, long-term our characteristics speaks on allocation that first emerging regard a made to what at to in operating our transaction the understanding in that thinking simultaneously base the allocation present based job through and is base to related creating themselves rates and what in as references believe that’s we at in is platform. degree, have growth when while it what value the opportunities disconnect see our my market have attractive the in described that and is current revenue evaluating importantly which see excellent the in opportunities. NOI that rental is that the stabilized today, and rate and cap decisions importantly capital there. in based in consistency as growth development markets our this the else true our looking our of business I've achieve XX profile growth that

large, And in things so we good large the reinvesting drag of profile you have investing terms always The believe play a you constantly absolutely always I the are non-core earnings-per-share that estate believed of capital that do and higher of out billion share. care of the follow. of dispositions take certainly if accretive business in growth being will in a real your on and and was per things student are term FFOM the the those $X and will long

believe so getting not were we're that value dispositions accretive now, but the for now add cap assets the funding the opportunities range are at where of we being the do for described can of in we in not growth position opportunities undertaking the as type in we're that rates a look that I that a we’re And that reinvestment monetizing self we the force. where points that it

implement the I that the have opening much for better funding we accretive and opportunity described instantly we comments. strategy as growth my match in Now

Nick Joseph

the to would are positive expect XXXX you months? over to in little XX get really quarter-over-quarter turning growth decisions away allocation just start last So the still capital ways or into we XX

Bill Bayless

I Certainly the and we there of in start growth XXXX lease up made comments in the moving this is the when seeing the 'XX. results that of in expect to QX impacts

Nick Joseph

about, spoken how think the opportunity the create? with Well about the associated acquisitions you just do which size value and model. sense staggered acquisitions do business commitments forward targeted capital large-scale on the future you and the allocation, the have that pipeline, Why overhang capital given make that creation development of

Bill Bayless

In sense. large acquisitions that a presale do not make component, do not encompass

of the no efficiencies, with able could When core that of presale. for have assets transaction as the strategy target you first that the started and not transaction building case terms whatsoever. the when would've that - foremost, we But growth were a of So greatest the in in in portfolio look in presale strategy, outlined large the scale the couldn’t at marketed pick we that XX coupled only of we the done market sense point made have the and markets, we manner. transaction, - we include to got assets, believe the of that loved have to take we the cherry component customize us

the we core to spread to XXX your were those assets do the we a take in do to over in to activities point opportunities. so pursue be will to assets sheets the balance able able have it our fashion And XX to create sales from room where basis deleveraging

that we accretively this greater is we have to growth will that monetize invest create engineering look receive a to will is opportunities much hate as assets growth undertake first XXX you. X.XX necessary transactional creation, to again over of to priority. value the and But as ability yields but as own will we in described again, refer I opportunity we and always our prioritized in look at the certainly then fashion greater greatest a of I portfolio do so to that And properties. what and that, XX we think the developments foremost highest for to, at X.XX large are And

Nick Joseph

those versus acquisitions how to then start and kind assets like just presale presale did that that deals? It @ stabilized finally, strategy. XXth you have more Hope premium. just the that Seattle And more of, feels of into XXth you fit the Bridges of, market are

Bill Bayless

this talking we is about. started and Yes, something

and housing - equation a two believe of greatest purpose think is America I last we in supply started built bed believe the the And to Austin’s in at the major about at the Washington University demand And years. the the growth of enrollment. focus value on that as percent UDub student the the market quarters type UDub terms Seattle. nature that Tallahassee’s. This underserved talking we've you know is markets look on XX is X I the three market when you over a mentioned has our We potential. greatest in we of X% created that to the of ago there. of institutes

has an dynamic market as the role in priced they great a on and believe acquisition, fully So look while surface are these we value though assets that evolving creation.

ground been a took this William AVA lease and acquisition also but Bridges what with it University. acquisition the really mentioned simultaneous we've longer working which we with the about it’s because We as on like

ACE a it so formal is like in And And strategic believe underserved we most the essence focus the is forming we with really the of America. a in an that University lease ground acquisition. via relationship

not falls significant that as demand. in relates what to the have a creation scale to in long-term shareholders advantage we and And again target market our this opportunity growth it to value market the that of our of be believe missed case X% so supply gaining is be much market taking in greatest for on strategy the would into the UDub, potential, that believe we

decade I for speak creation And there business over will think opportunity so value the next the in itself

Operator

Our question go FBR. ahead. will with David Please come next Corak from

David Corak

on I guess of get to the remarks I'm just end the curious your leasing season.

some that, but One of than take one price a but as give last weeks happened everyone your can why disappointing higher X of six up maybe really of give good could was you the last of of weeks the month just to themes to last the other out NMHC lease really had sense a no points, you X know to what supply on us coming four season?

Bill Bayless

if you we other had we then look of and you those the for two terms had rate. go three I year the to heard gained but and it this again also the tale had is was underperformance gain comments XX really you significant at when X.X% Bps of And occupancy really us the of where in scenarios strength markets markets, XX and and in

our Bps last certainly gave XX until said, and prior and July to before when with I XX we XX you you and we Now I trending we that will update release prior go back the the trending when the think were behind. was if so we week last that to were the four running released to ahead final Bps report say up at look

much seen XX XX, report it place XX was compared perspective up were we with wasn't you look ramp from us when midpoint velocity an I am the the was guidance -- prior period didn't it June at June that acceleration it in that XX in velocity report the still through on sorry periods, diminishment July, where because that we continue the same was the ended up to the seeing especially opportunity last and the in rather as when believe there prior that years, of that in had we the days from we So that prior pick last so took and we velocity. those XX days that really in right gave but markets in that July up issued our before

felt the in in companies the and at thing, the wasn't Now can and students analyze came of if days, anything places shows as in happened you we and and because from again, see and it sound questions reported, our just data country what NMHC look more the in we we XX case international where on thing there's that the was did we did we heard investors went comments it much again at one same our per in rush core origin other last our finger first all. we we first we put that we that to than the terms of fair that performance own numbers. we that late housing And track got the the from is like can't

to those lease the quality that history modernization we at came that that and actually that again even enrollment of have The actually, markets and pedestrian XX international, and maturation and markets for the the because have their core slightly assets appear the have this up where and had enrollment point, report is to with their is wait domestic universities that in markets in the so or it. only this the the percentage we XX low Lubbock, higher negligible thing they from so very So and entire and three do enrollment class hypothesize we university most a international aren’t one is you in the in percent in doesn't up, champagne international typically down in champagne and freshman be at wait reported hypothesis the universities those students enrollment the of has statistics to students if for the numbers look have -- in the season they a tend was their in to the was they to want and products, Lubbock RIP in live that increasing, issues is highest till students RIP actually And don't are to very, international demand desirable supply end. they best most the mass. of they very and tend of the it largest latest are terms they mix the

did improve others having consistent that that felt much as as again, perhaps to has more philosophy because other but saw of portfolios course. more it their mentioned as than those we regard, perhaps companies companies with of And everybody so other in we our tended

know analyzing answers kind if that facts and that and question that's of your David at don't statistics thoughts. looked is really we our I own our So as

David Corak

You about certainly international enrollment question of my the answered next students.

supply you and So I but gave, out 'XX. then be trying to we're over appreciate more update if that, impactful turn of but to the wanted appreciate in on numbers supply, less to will the I 'XX just figure think some all in or

and the can a two the supply as second, how XXXX in saw schools to update received you 'XX will than supply pretty less compounding detrimental So and the enrollment certain in you 'XX be 'XX? more in is And of then or that supply some percent if on also your questions, there us schools? of of effect in schools receiving many

Bill Bayless

is decade. averaged be to Jim where his Austin. and last differentiation which you year when X.X% continuing watched And last mentioned the have comments, the the for out years, top XX which market, the the terms supply the any this nothing four at we’re of that of always coming we norm, largest as not this It's and Station supply. watching year three each about supply in markets, of overall year, going has Tallahassee look really individual are we in is look of spot into amount Also, the that presence we College in enrollment, for at this

at it over give year as real and of accomplishment market. just understanding market company's estate describe as Station our discussion that’s size last in housing an look been allocation it our in about in we Now heard you we’re Take delivered and that that stats the basis is that terms when look College having as with a the I that of about years while, College terms there three and the Station competitive was the actually occupancy greatest apartment XXXX been Station the Nick highest beds those Station this in at would development to one College your performance of occupancy, relates will period, XX when traditional probably rent. last irrational example nothing where had year and have point and this coming rental three College flat - over the three-year College over development over here exuberance at all some something have is they down of period assets and Station year with revenue points And over been that market online has three-year is our years, in the in have there market each intricacies you of capital in delivery you this continued. and beds that where that XX% and

period full. continue had years, And have the because have terms And had so three-year in assets Tallahassee, revenue have to that over and this that top the several has on the the implementation of believe to they if biggest barrage have over seen investment weathered sites will as a of and of in well. list rental development many criteria now long-term speaks in you for available Station less of next asset our been price in. the Tallahassee Tallahassee XX% XX. market you that our the do come supply College that supply choices, and decade, beds of we we the combination growth is Also that over rate point in and last Over all have location XXXX rate in

to we said differences will have that but Tallahassee is year we so not and always Tallahassee, beds lot Station and in and Station typically this years modernization as we concern is Austin our prior have this itself another don't we a XXXX keep the because College in that the we've XXXX. supply to do eye the space of have as place see in the taking of Austin of year, from coming so and continues space our College main in on going XXXX, And is

absorption markets that we it certainly again that look been through in rate at has continue focused. big numbers, optimistic been growth supply supply very amazing there and have has chance Tallahassee been and we'll the are rental but and those amazing Austin past, will any just Now the the have process, we

David Corak

do The supply data in overall 'XX, points ’XX? worse or feel impacts are I versus you 'XX but the about obviously better helpful, year 'XX, guess full the

Bill Bayless

absorption say talked like not tough, performance supply we’re our at and Lubbock our Actually when their and I better, season going markets and last year knew big did Tallahassee with two Again the we markets was of going reason for into last. we on about as and we look it. better pricing, Lubbock, about that focused be this feel and being that that to Austin historical we three

Operator

from of Our America/Merrill Bank next Lynch. Juan ahead. question Sanabria Please come of will go

Juan Sanabria

you legacy internal your of and give prospects was of time? more we on I kind kind of some little differential the changes a new expect refined in of products you versus assets to could targeting just kind how pencil growth of the are strategic in color bit could rate if hoping about growth and kind of think five-year that we older like over that business plan a

Bill Bayless

going year, be from at - historical we his of as to see that this range up the opportunity several talk X% Certainly hope that lease depending hit the high, always press about the the the historically upon portfolio X% it look the expenses in the we targets question, year into growth and so the believe to into the the that 'XX, to the last release and NOI historical gives long-term talk we certainly about target of. that 'XX on about you we growth years hit going numbers that X% us Nick that we academic X.X% is mentioned always And we'd and brought revenue year-to-year believe this into NOI north. more X% are as as capable was

XX-X is diminishment. XX-X look you thing a the lease pedestrian versus look you holds this have of in same-store at this front actual The do in are your axial is industry-wide core has metrics the up. here of the that same if certainly significantly now me, The supported a transparent, XX-X had data that the When assets half-mile, portfolio outside bicycle their indeed the so, from now is beds XXX of drive data, inside I outperformed XX-X. nationally of points that XXX,XXX in have enables And that where metrics of those mile true properties. portfolios year's it basis

And affordable having in better we're believe business metrics anybody assets prospects. a to acquisitions got give rental our dispose the assets what where terms for pool you hope the non-core so when the certainly portfolio growth building the it of the even more developed relates which else doing rental rate diversified classes, not ACC of choosing enhanced and profiles masses, our terms And we and approach than the we're those. imploring is in we certainly better two of growth intelligence acquisition as allocation numbers we we've or now of axial national one, we assets, which talk of on strategy, own when refined the did better things; outperform we includes our capital to where about rates,

Juan Sanabria

be on rather would the growth rate higher or growth outperforming occupancy the So more perspective they… driving than

Bill Bayless

of at a as short-term, of we occupancies Well certainly the one were grouping the release at on with the that you look X% the we in for opportunity 'XX is to the same-store to rate the achieve in you you're without we've improving year as at you you if in then closer look opportunity only rental terms the X.X% the grow said if next improvement which occupancy 'XX, so base if XX-X had of trend that off lower comp and at low XX-X end when going And all. to to level you're X.X% upside know occupancy getting four. mentioned

would by get say the over more performance balance and And in so over short-term, occupancies occupancy occupancy. historical to opportunity rates the exist driven longer and close the term, it's to probably we back levels of rate a I where XX% those

Juan Sanabria

degree with the of confidence about, repeat question you the guys next 'XX the supply occupancy. risk markets then smaller couple same same bigger don't you're a seems hurt the just scenario been What's schools having this And couple schools supply just three universities on comp overall idiosyncratic at coming XX particularly previous universities on of talk not typically it like in three 'XX have school up that and following the at your in doesn't year? a that the

Bill Bayless

never going a every be that you're XXX% is guarantee successful There to in market.

in and and and and gets operational be we continually component strive every to And systems year to will and to. outperforming market early need That we're every intelligence each do in data and adjustments in our to so. that in adaptation only in so better utilize the making data we that better business

objective make. and that we so And there's do and what in but took in is Champaign always again rise Certainly every one-off it next year. and -- place data have and the certainly and of monitoring possibilities decisions and while hardship, markets RIP our day our we not in can focus we have each goal Lubbock on the occur those

Juan Sanabria

market? just that venture And targeted, that would how think the just assets Would the on it on a a contribute a have partner about acquiring you where you would venture open be joint disposition/joint lastly joint do or you preference venture? your structuring one in you and look assets with are quickly ventures joint to grow a potential

Bill Bayless

today joint joint venture having our be perspective, alternatives at will a we a is shareholders in capital where we about and that source driver and the look of Also of at we merits both, the disposition will certainly available. this long-term execute of certainly versus when from to that a will think and opportunity stock straight venture regard. transactions terms for of both at being large And that on we relationship of you And joint as ultimate price venture economic know are attractive. and in more able makes all looking that look be evaluate the was though certainly accretive capital cost will

something or to in the and we but undertake to to would seriously of been we a ventures upon. structures level error an the in it the transparent considering in quiver in in one-off we able And not route is historically consider of formats with had it’s code our sure not have be terms venture that conversations opportunity. that But, joint Certainly we as and - simplest that at and that so our relationship Board in understanding route, any have we have end internal think it done we can't and the something can systematically disposition provide that our it's look up are potential rely a think greatest the of versus the if a we making conversations do joint that market a perspective have valuation. we the

Operator

question ahead. of next Goldfarb Alexander Please go come Our Sandler from O'Neill. will

Alexander Goldfarb

you. for questions Two

had savings First the about in Daniel, talked XXX basis you on a last the points fourth call expense possibly quarter.

update earlier the the below ex-the comparison, then NOI just the it coming we're we comments hurricane. about for you what seeing be that cushion next it hurricane expenses your trended if on as think and in, and about we So, where how year to the the is revenues year, of this out curious relates that, expenses, in next your like going sounds know, early to this then year some think backing the - year, about

if of those? just on both comment could So, you

Daniel Perry

Well, that to expense expenses we said, beginning we to in first X.X% and lower were to with fourth third target same-store the relative growth of included the to the X% you expenses did quarters regards guidance. in growth the to year that get

growth. If the going low X.X XX In our the as thousand prepared original nice you about in at and expecting get that the few expectation would be hundred quarter. relative at we in for growth did cost. terms excluding then averages end X.X% it certainly the above third year expense basis same-store talked comments review include points relatively year high, hurricane us we expenses is now forward. That exchanges cost end total that the growth of and be look and flat incident prior same the excluding include we those That something that store to group at get of the still expense non-routine response to us the store to show grouping, prior high would of our at review in guidance we X% the to quarter, will repairs the to primarily update, the We to some XX percent compared same fourth remarks to fees, group driven million dollars by to growth hurricane maintenance cost. and that $X consulting nothing expense $XXX,XXX in the related in property taxes had to about that expense have

expense on impacts we positive in see of whether that to with giving to the results are those year NOI will the will obviously eight growth then yet As at lower or and are and good lease-up. into fourth revenue and X.X cost did terms of or controls whether see nine of the on income the growth that minimize we negative we know, in drive any guidance able we other efficiency terms on side expense largely opportunities then not of for than or months and the better first And be help Jim into in the we - third obviously to not quarter that lease-up, factor beyond months. continuing the first to same-store nine depend on you determining to XXXX, drive growth the X.X% move mention that are growth. the to this

Alexander Goldfarb

of going assume expense given to see is year to we probably fair normally that when say some that for you than is element we be is conservativeness, conservativeness fair? next what the higher But, to going budget guys an

Bill Bayless

fair, at a it's excluding rate. in you especially low of last as this third running X% was the year, tough a lot the little this expense of X% saw comp of first into Certainly very look better as implementing a know, second you efficiency as had we and the a the you so half numbers, we maybe half year expense an said, that’s two good hurricane move year success I quarter as of comp initiatives cost. with the above year quarter We've are the where growth little

Alexander Goldfarb

then funding the targeted plug of on to is, question about second XXX. and there about for sort the then, of And growth have funding XXX this is you side, XXX of guys

just you're wider cap basis, And those development is far how to going investments your on the if presumably rates probably your about the real-time rates? you hard how talk that it's where then, as impact of based selling you where be than rates but know, guys if are think as can about issuing to or think program, the is just you you you're obviously equity? in given about that So, trading a it's level funding stuff adjust it stock given cost cap does at depressed given new stock

Daniel Perry

issue to we at? Wider equity what would

Alexander Goldfarb

issue you'd selling… normally inside presumably be I where mean you would equity would where of be Yes,

Daniel Perry

growth talked why and in the capital at drive really joint we or slowing looking Bill probably, the venturing about this that's maybe cap we're market special available turning those yeah in we or portfolio fact invested favorable that and towards can the in been in to may that's environment discussion over we've good core selling mid-fours seen like actually the rates and those at. several and Well, interest last relative bit where we to of NOI feel assets assets outright picking assets a his able years at see in allocation what

that million, $XXX our want cost million the the out allocation we of nice we of execute on funded first all million lay about to plan that how when the is as in we $XXX go capital what thinking and about of talked over commitments, at supplemental So through of that's $XXX is fall capital the and we this period to it million part the way 'XX. look $XXX two-year to capital that a out that's we're of going be

the today on and so make match what their looking fund we that at $XXX taking dispositions time map the most best we as into off you capital to of perspective, those And so of would we capital heat we trading the move and what think assess to million from capital right assess portfolio, do sense. equity pretty profile at Obviously, to much sources that period. through million will growth of assets NOI put make perspective look continue of the consideration a we're the that from want are of $XXX to reflect have at most think two-year chart now sense and we at plenty we that remaining we the cost prices long-term the assets what

Operator

Austin Markets. Our go next question KeyBanc Please will Wurschmidt ahead. come of Capital from

Austin Wurschmidt

bit little five and guys you described five RX that a was outside assets fall sub how criteria the rates remarks. your I confidence on of power wondering assets side you you of to detail cap target more could achieve university your for disposition or those a would if in sale criteria expect Touching as a prepared

Bill Bayless

and market directly Yes, not the necessarily related. are that two core desires terms future about our long-term in the we're talking transaction target of in those comments are imminent

And Daniel particular those the so may is said as look may things indeed we harvesting, do with have target at they that significant where not we in some value -- created those but we want one the of well, within most perhaps to of long-term assets. markets that make be be

one should of -- exit joint this taken research five in with concert not and particular markets the and disposition And be we're so non-power discussing. those venture

Austin Wurschmidt

in And give to just market, what color Can of the No. then there? in you taken in expectations terms timing. process have of some can assets That's are update you where you term us the helpful. just you us

Bill Bayless

commence in close year. we year will to of the hope two end process prior to quarters and The this of first next the

Austin Wurschmidt

just want and a to rate That's guys so bit helpful. Thanks of lastly, for you 'XX. Bill. baked growth in have little X.X% And rental 'XX talk

how X.X% we growth those X.X% you thinking down revenue which as could about to other X%, think growth XXXX. expectation You impact outlined for to factors seems are or either up reasonable of move down here? What targeted that and

Bill Bayless

to there If release, in X% the relates to at 'XX you look 'XX, the up. the statement lease X.X% the

that the we lease is growth the academic that on up that so revenue the can produce anticipate we year. And the side through 'XX, would next rate 'XX for

not is calendar 'XX a year reference. that So

quarters rate and give the so in call the going give not of is in that on on the the we'll final 'XX. we're projections terms that of to expense guidance for three February call what and growth this So -- first expense

Austin Wurschmidt

other contribution with but was in 'XX of that how revenue and those saw other at of moving next kind I and this year. looking that two and thinking 'XX, from 'XX, putting of growth, just are in growth first half the half income pieces back that's kind of you leasing so the which have the year as you curious some the baked just the what Right, we coupled impacted year? right short-term together about year X.X% for 'XX, Revenue next year

Daniel Perry

considering That again and exactly variables the guidance we the when we will they on - get proper guidance. those too all is what giving ’XX into components

with situations is so we on look comfort and As extraordinary the year to had in is short-term and no levels portfolio we in relatively at so we that leases that. there have part related number the what last

Operator

Our next W. with go Babin Baird. from question Robert Please will come Drew ahead.

Drew Babin

I circle year. on growth said back we to FFO that wanted about something earlier next for

estimate sort said different paint the about in of of I NOI I want that year? you growth FFO three think you for Bill growth consensus or begin the XQ ’XX. FFO because be would talking next growth certainly should a quarters to whether first picture clarify to seen

Bill Bayless

revenues believe starting Again but we're where NOI the those all or time place in about year, point earnings year of are improvement about that saying occur share your so. impacts QX next overall for the we in growth positively we when and are provided per numbers numbers what guidance is any giving any in next internal we to that will put not talk in

If target. you meant certain to apply any

Daniel Perry

about of With you terms had and to in revenue when growth from to I you billion And to difficult $X.X ‘XX is NOI of in big really the that that, the number obviously move about with drag billion - NOI terms think between lease-up is academic expected was obviously primarily the dispositions - had for 'XX speaking year. regards taking revenue acquisition equity. talked capital resulting from Bill what and provides the $X.X more and a 'XX growth. activity through we development 'XX we’ve We of big about growth 'XX, the as rest this X.X% the expense as start FFO, 'XX, to

I really deployed the deploy beginning 'XX in 'XX at capital. by between XXXX at $XXX had taking growth into we've at caused you a referenced really that XXXX looking million that's XXXX what in compared and larger and think there also there deployed equity which being what's consideration and XXXX in to and of our the number growth being FFO low then is and when 'XX, which Nick a alone changed And itself so just is portfolio as is offering that dispositions into is XXXX. 'XX end of really this a we large 'XX 'XX we lag take

'XX, to would you it in start should You effect see take that. expect

just our guidance hesitant kind to of So we are to committing we start any of levels give growth FFO 'XX. before for

components as will year of you You’ve got it and into increase we and weighted the share what allow the to and in FFO comparison of that expect look that as this improvements move account individual move getting when of 'XX drive the go and in 'XX we're in deployed in terms of growth. at all But have this lost end average year capital for go the through terms you us don't of to - we prior and that the FFO year of that NOI growth. see should drag - you 'XX ultimately you through expect as would you budget you for should into at

Drew Babin

you new supply. a largely supply bit about Station Tallahassee, positioning relative supply, of supply? year, inside past secondly talked the markets positioning relative and Was 'XX your for at the that your little you on Texas how your Austin, new to And about College you case be this in look to feel do for to Lubbock wanting Tech for if

Bill Bayless

the have in submarket a we're have in - we which that were market. consistently next trip year. Also premier that First and supply talked tech's in pedestrian of by we of remain from Lubbock the market been as in new up no have the coming about supply new are enrollment that in largest there. beds along long-term in They’ve so XXXX good X,XXX we locations XX,XXX goals at in coming position the have in Lubbock, XX,XXX we that and predominant Lubbock XXXX. freshman the bullish The gone long-term to have is, news class a Their XX,XXX investment we year from X.X% we to on XXXX. continue we and prior

Tallahassee, again come we have those X,XXX campus is of two in asset I and that's why and premier -- markets, over great seen in where excellent Tallahassee locations capital three allocation. mentioned a Austin and location we had you've and to relates it on last point the beds pedestrian each As this of

mentioned, and and ago years the in, to being that scariest the took place over about intelligence years We four and passed. went growth in that talked had we that back our function Tallahassee to I in the three came over conference NMHC three-year go revenue rental we've four big Tallahassee You market growth utilized just as business a everybody period. XX% while

always well And long-term those to in consistent sustain attempt so we markets growth. ourselves position to

Operator

Jeff from come will ahead. Powell question Goldman Please with next Sachs. Our go

Jeffrey Powell

get Thanks capital thoughts and allocation your for sources the the want of a all to scale for funds. I to moment turn and color there. on just

$XXX of $XX have with apartments has million million G&A and in and $XX G&A NOI. million of Essex NOI in of million You $XXX

you think can here? you can if scale wondering your platform Just from

Bill Bayless

count, the part years is And over the the we're look we from as an to dispositions you activities ago. the talk the the we part size platform market of and and challenge -- that at year, can and operational certainly perspective scale that's deleveraging about also and major five same were the here from last property of largely as in

complex grow third-party the PX XX%. there and we for And infrastructure little are on-campus to and the scalable transaction than the significant a business so more company at given you look But to the transaction. at of side operationally a campus certainly another business basically when infrastructure XX% this multifamily in and American place our point certainly the incredibly and have

Jeffrey Powell

third revenue, And services development then just million. party year to guidance turning increased this to $XX you the

trend is a that could those little than be next and for year, how Just to looking deals flat. year just that for lower this

Daniel Perry

will a tended and construction million year range if development development we've starts including new we're is in this big approaching Daniel. look Jeff had side, year, obviously the normal for on much and $XX which on million. this In do services. transactions as million I had mean depends run in as that construction, got the a how have to year to $XX both a management advisory talked pipeline three historically for we you to This about have is addition third-party development so RFP fee $XX really awards terms in to a good of of then backfill We've with We got continuing closings. development the recognizing developments. starts to able new great some fees you year upfront it third-party to where Yes, those include big that. all commence piece you’re inevitably We some we're William you third-party year. next and

we it it where we certainly we can that's year, but kind million a know like see we did be of those, you $XX in big had have as be year see million this would another to year the year had XX in opposed expect the expected if this more shouldn't we million to I that So XXXX. awarded to award we unless range like would backfilling be $XX to that

Operator

from Please next Our will question go Vincent Bank. Deutsche come Chao with ahead.

Vincent Chao

mean tie about historical competition now have here of to growth would just overtime development necessarily come that your mean drift a Most adopt and by your competition internal some a upside as already, your on from you down big we I back to just should should and approach? rate, the I in necessarily your but in maybe that spreads of sort been eroded Bill, using down questions trying of to are answered people that your my the that comments that to and X% picture achieving and then criteria X% question similar perspective X% that find basically away is the development,

Bill Bayless

at XX%. again enrollment pedestrian in student over enough that at we’re the when still you in as charts just we investor is the off-campus pie of you Overall our of XX the operating a early show we when maturation in, markets the are that core look housing look space on percent and charts

the for as in as long-term the runway is relates a modernization in there supply and so we down of terms perspective we nationally seen to in And view success have the without the still that positive the growth space much fundamentals in adoption space desire so new achieving for the a appropriate of from it significant to we type opportunities NOI be of that market the grow historically. driving that us opportunities to the of

still terms have buy can bringing We we a of we anything gotten upside. and they operations do also think and see, about time efficiencies while management their benefit development folks superior create anything from that and we typically the that lot to prowess they and what the better effectiveness how in think any

as than positive so see rates. And adoption net in slowing terms our the of we still impacting overall plan an growth overall business additional the competition of

Vincent Chao

then, years mean generate lot I acquisition, upside, of time how some things if another a stabilization. of happen sort takes factor acquisitions look top a the so you was do capital just just guess needing you allocate at reach it to I core can initial you on that presale mentioned in stabilization that the and and caveat now in the you had out, space factor presale earlier few between it then And where had to upside question, how you'd and as you the I a time of takes curious

Daniel Perry

the getting so between we - but taking just above stabilize an cap below yield you're development taking rates cap the rate the asset that’s are it's a The and one they lease from you're rates, or up you're rates, quoting yield which and presale cap typical developer, typical cap the presale asset, existing the get are you're cap year you given lease are risk get stabilization during still up the that is as - a development that elevated risk you above taking rate. construction, the taking typical that’s risk construction higher and a or we getting because blend higher are purchaser why acquisition what they a

for rate year those So that we’re developments. one it’s presale quoting cap a

Vincent Chao

can things I so number years guess don’t a over lease-up in Right, is obviously that risk conditions but of that. for and while, like those case change, a this of out so deliver some spread

So you that how just curious in? factor

Daniel Perry

mean it’s thinking developments, a any, if I you're XXXX it’s all about same are as they like, Yes, right. just

that talking our out is And all environment own be so reason of you're The with would we about, the we risk same in when XXXX holdings you in we XXXX. fully core fall about XXXX. talked portfolio joint lease of taking are for know venture the those that's properties buying development spaces interest up

Instructions] talking bought presale and we their the bought from full of we XXX% really the interest about terms Citi. blend are from [Operator a we seeing to full of once developments all year and Nick NOIs XXXX, go assets. in of ahead. follow of Joseph XXX% when in full first relative question contribution Please So, in Our the you're yields of ownership interest a and assets getting next existing ownership that's we're the of those up is

Michael Bilerman

capital about Hi, at student doing alongside curious likes the terms what to have up. market, to and million am of the certain you're to Bilerman from the of operations looking uncertainty it's uncertainties perspective curious this potentially and because the happen of a am acquisition fund of market just a in housing and never you raise just raising both here. transaction. could from over say of period I is risk amount there of that ability disposition the you lease in - time, assets also terms this in I taking Bill, I The of capital while just of may Michael lot execute have confidence thought $XXX

consider would capital sector be in to do bring furthering is just acquisition sell continue strategy? joint you to other incremental assets and in or think foreign to did or a strong this So on doing other that then you the venture capital so your

Bill Bayless

closed it's much between equity. joint and into Michael. at the discussions back in of level. started risk opportunities the of obviously did that process, or these while we return regard what of in these forms is much existing times throughout we joint with at discussion at and to various year process, much, and decision available we market that the at look and this and that the with discussions The disposal looked And there venturing certainly the rates level you than with it beginning directly talked the capital terms terms today and joint Also finish all the away. in also all Certainly the on been toward recently, at stock those in upon. line. evaluation terms different about of venturing raising had execution do Yes, opportunity growth to we moving is at venturing on looking was had in the when looking We various Board raising here transact really certainly portfolio of of transactions getting the earlier went of also the while announced through that this ties there versus certainly core terms versus of this to may

would so that at making and we're all that that looking variables decisions what those in And again and how at terms through decisions believe of against those so we risk funding analysis just most be were accretive driven forward. that level the we and making of weighing the the all the and discussed and not then going Board decision internally terms of go of in and

Michael Bilerman

you your growth 'XX talking you're if portfolio to in 'XX venture you're you on assets existing right, X% executed announce a 'XX, better venture that understand and met is you you or selling I have always in 'XX, X.X% and deal. joint to those struggling really your capital that spread the and transaction and the average but other able assets why other gets a cap it and still forecast ventures still like in capital acquisition about of of and a would Right, trying stock three on sales wouldn't joint joint almost your because think this Does bring in-place arguably sheet easier price. trade strategy? X.X% joint which seem balance have with new partner who that is with an is know good bringing that really versus along the partner impact way dollars period billion and to end on you obviously sheet it's of for quarters balance to getting in the a by off almost to never brought your a the the being venture in I'm X% put raise an pressure

Bill Bayless

in is Yes, is and regard, of buyout a venture that that place. one, with itself core structured the in of in terms this joint and of over time somewhat taking

creation long-term assets own and venture prefer as value assets terms we those at the growth rate going looking would or based terms dispose growth end and to look day And have of we opportunity, at economic to into three, that go the down the capitalizing to difficult to to off you again for transactions, so terms core last of assets port risk. perhaps of in we decisions. a the bought level rental Austin are in other at at the it spaces we the the but delivery at and XX% that look at look same in over of and still and more the -- the and quotations the do outset all to the core forms pro tradeoff the have little rate the future joint the portfolio that the that all the potential terms of ability in forma in analysis time rate of the venture these at Board three that bring we're was of outright been in come the three do -- the so assets At acquiring and I transaction. joint on where to underwrite went their we if the again we when those that of much -- a growth conservative -- the and at a of looking understand that The you XXXX, years versus and those you capital certainly in-depth decisions analysis through in internally looking thing on opportunity more a your through the transaction and we the prior making comments,

Daniel Perry

coming, even of feel or what of international we cost private whether One transaction to the we lower they're sovereign any okay, venture the has a joint as at the core. not it especially gravy venture, end from the we quiver, do joint assets any new - housing is thing we mean growth that could joint market capital And investments, add at from I'll do about, the coupon would and existing of student flipping about are cap they venture the advisors too way NOI day all funds a consider done what and them. a growth. hear about They with I concerned partnerships we're is wealth buyers as as source like for in is, think joint we talking that add NOI funds capital you're seeing type at that we've are that always to or rate to into the that looked the buy enter type joint whether as that coming would looking is, we the when growth of want venture venture and our are we a venture joint have want we

partnership market. private IRR developments the - deploying on better And venture look of And new than so capital piece - we whatever existing monetizing of our as higher can whatever capital venture in piece the portfolio. a in into generate are markets joint those which those we properties on a we're at new cost we than that has we public joint like feel growth a what

there the sell where can growth the generate a return. we that as is going we of use that a And so, higher on to to want IRR deploy to stuff to lower a much private new use and where believe that we we market use sufficient IRR are capital as

Michael Bilerman

likely by question are to continue closing phases timing, terms prior of to selling. levels of acquisition last initial know, your at least the in Just to phase increase arguably leverage development, and core fund materially you

to And bring where expect to down some goes, sales leverage supplemental? that am so, sort that XQ, at XX, we and to do it to have forma you XQ, be I the understand leverage about what of XX XQ should this start having thinking trying pro point just in you how call

Daniel Perry

until right the it's 'XX sitting know, asset XX%, portfolio you much fall Yes, it's value our of - and to and commitments the not immediate development pipeline, it's quarter fall end quarters of coming are as debt to ongoing our of of core around the be was we said on in deployed the funding 'XX. bigger

down there on based then to projections our So, XX% capital to access we get percentage around mid-XXs. up 'XX. that XXX with to on that The down X the million creeping portion that towards back long-term. capital allocation XXX bring those need start make coming ratio pro the the execute debt, debt-to-asset you of additional use we remain debt the over that if a we'll back forma that on to goal back show page up would points Obviously, see fall dispositions all to the up we XX% ratio we and or funding million would ratio X percentage of to we as that intent we're disposition rest about talking show needs to in of value funded know, by until asset we towards the of there capital be sure the

Operator

this turn our conference Bill remarks. any like for question-and-answer over back to Bayless closing gentlemen, session. and to I would Ladies conclude will the

Bill Bayless

hope visiting the you was here, want we NAREIT We to next results. helpful We you to in for certainly of strategy on with month. forward the quarter third today to allocation strategy taking time and And with you to broad look visit business all terms discussion thank all. the capital us at

Operator

now for presentation. today's is attending you conference The concluded. Thank

disconnect now lines. may You your

American Campus Communities (ACC) 24 Oct 172017 Q3 Earnings call transcript