ACC - Earnings call transcript Q2 2020 | American Campus Communities Inc

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Operator

Good morning, and welcome to the American Campus Communities’ Second Quarter 2020 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Ryan Dennison, Senior Vice President of Capital Markets and Investor Relations. ahead. go Please

Ryan Dennison

to morning Campus Good press you joining has provide for was the audience. Thank the release, XXXX and Second American company access to X-K Communities’ on the The widest Quarter the possible an furnished In non-GAAP you. Also which reconciled Form thank Relations the Conference directly release Company website the both those to in section, measures release supplemental on will GAAP measures and package accordance financial the posted Investor earnings with the press financial package. comparable Reg includes you find Call. G materials requirements. the in

We access live on webcast available a are with website today's the replay hosting call, can the month. for which you one for

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

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

Bill Bayless

provide us you, current joining financial morning, the pandemic our comprehensive And all business. on and QX potential thank and Thank Good a as operating of Ryan. to results. for we discuss XXXX and of related update impacts our you COVID-XX the

residents, guidelines. to established with operate Consistent complying local our our earnings crisis. and we of CDC's staff have all discussed quarter call, field leadership to do we guidelines us stakeholders. principal reiterated guide and we objectives serve the under thing eight press of continued to As overriding the communities through Swan with release has our the those And and Black in objectives, right the been this our from our event, our outset of municipal on by objective the adhering State as this first to follow to while our

member’s and all working our of mom executive take the ACC all of counselor that, remotely, want still of off we our next-generation And its to that best work most four and the to members to work The during to an months. team some hats Campus have acknowledge I'd our member, corporate new we our with working playing parent. the are of team and period. field teacher, XX-year team been ACC I camp objectives. many continued roles in engagement, the work team, to parents American hard the adapted of of and during about this appear support our learning all Our like to strategic time. thank environment, the they have meaningful to to Directors also over collectively team business have perseverance acknowledge advance our thank staff be dad behalf their each team members Board commitment, our support believe and challenging a and also our company's entire and like guidance well certainly lot and members business for truly I'd what last done history, their day. has have of On provided for for

rent at no resident would go on of made company of to basis. because timely pandemic, you our this mentioned the pay an know, we home, that consistent As the outset previously objectives, eight and values inability a a with guiding a pledge without

that our communities average apartment a on-campus committed open the the did the those indeed the compassionate to Campus our be financial May and are true to payments. impacts Staying these partners. apartment XX.X% monthly possible their our and their COVID, university We due in commitments long-term reflected At partner April, maybe communities cause Government short-term for that corresponding ACE also American to residents And our hardships be best rent in made shutdowns. and June financial leases committed we on to of off-campus parents the that basis market to experiencing residents our and quarter. pledge and to

than Resident their parents. of we to financial hardship our For those our relief $X direct to to and residents meet X,XXX able that were million obligations more of not Program, provided nearly financial their Hardship due through

relief students Residence our leasing We additional $XX administered an partners. Life parents ACE at and on-campus million financial by of our university to provided are administration, also and where rent collections communities,

not being our rent collected revenues waiving budgeted with resulted during the payment in collection the million In fees associated $X quarter. than and of addition, more of of

of the discuss, up makes residents. a fee income our that relief majority this team able the service to expense in reductions portion not this of of were waiver the the through quarter. deliver our large for diminished will revenue to ability As diminish to $XX our quality and financial million did offset We

of leases begin financial and about current ending the somewhat. universities new and buying across majority the of position at the student ahead, academic in-place to the year unlike With residents, potential our a in the the to weeks Nation, improve power renter has multifamily

in of and of aid or summer many those As completed were scholarships college being eligible the students, from year parents your and apply aid will for group all-time assessments aid economy student form the years, when Incomes was at of to spring at students for their own financial unemployment recall college current on for every grants, financial financial favorable XXXX, demographic students' each that In academic from for and the loans. or time. needs-based the being near of are applications position from economic year, lows. the were financial all-time their at you nearly being with parents likely based conditions in the U.S. reflected highs

the students industry of students without than academic parents received and COVID housing summer the students March this now of of to have the and saw upcoming when We the parents year. such, aid increase in support. XXXX contrast, financial in due reasons As experiencing likely financial as the for for has they academic many significantly this qualify hit By income every so financial in their resilient financial pandemic aid the and the in benefit macroeconomic the more are spring applied for in to times student year, in is of prior aid likely the needs-based U.S. one during diminish recession. hardship of financial over And year, occurs aid middle those believe those perhaps stress. of years, XXXX of been

next of As while believe the we do there full in will XXXX. the we to academic a look not forward fall to return normalcy be year,

given are academic four with variables. optimistic following We facilitating policies on to safe curriculum in-person return at instruction. of a time, focus of environment to delivery the One, university's their some and this procedures in promote campus cautiously component the

these Two, year isolate student and environment, dad, halls, XX-year how improved outbreak. two COVID of to the curriculum regard four ability last at same-store -- the incremental served the as desire properties, conducting of classes. it's As of improvement to period reported we sentiment days, instruction that five leasing and, housing with property at online, leased. is component with own me, to XX compared shows and also sanitize schools XX. Three, their activity properties as well style and the having excuse open to and with renewals, student serving XX% XX the Education being of continued in-suite leasing XX with XX time, demographic college bath how in data to a diminishment worth in times applications, understanding in representing are this of it households The in-person overall continue home for if reported with being student's facilitate an in versus four universities mom environment our to no in modern available the at their online. With And velocity peers re-letting of have prior our our a predominantly leases of the to for we apartment residence only X% with, living Chronicle even student the to currently data, delivered delivery. noting, on universities of at And to college be now have residents, impacts predominantly potential universities in and in same having normal four, chronicle Higher some in above announced and And our request see three, XX-year-old regard potential occupancy. traffic, coupled market July

range last behind of for of the XX% prior with to night's As points now basis only classes, weeks release, saw XXX before the we you commencement are upcoming left academic a year, pre-leased XX year. on the five

market trends XXX supplemental, in decreased and the our to is that down leasing final like category applications, While our three, to since XX-day numbers. or XX that that to in increased the further now XXst optimism, opportunities of at to It year the variance review prior I'd points break traffic, risk prior from should decrease May S-X negatively and worth in suggest, may time, our for on ongoing renewals properties. the our that leasing positively year basis have core the impact and page properties update. cautious would and leases variance velocity the open of terms that our you year noting, continue leasing to when variance prior

focusing these become normal that of accommodations, risk skips, it and Those risk categories, renewal re-let prior lease-up. year, financial each re-let also these current may the we three, of categories routinely two, released one, rent, annual paying that any a so on have to any and renewal are risk, lease. to shows. reasons. their lease signed their apartment components thus of ordinary manage a asked every are renewal having all current in that is accommodations First, future attempt to and and on who skip they current there to that period three be available has beginning their the responsibility, goal to three leaseholder for vacated year no their the our three quit academic each lease due us but is In students upcoming from out and A has skipped classes,

the our our -- renewal have in are taken from actions XXX earnings this pre-leasing academic certainty the we reports. not counted With release. not be actively wish of fare in counted our who skips, and are which leases in the normal they they and and who versus throughout levels. definitive usual in in re-let re-lease early reported, leases to not commenced May, XX.X% our show these process lease-up. no-show These they shows out the late in well re-letting always timing us regard that this are are re-let had students the an the they and with their to help this at in to next planning as fall as them historical far, may and management potential is have been we no students are that attempt statistics in the year, to Thus, potential pre-leasing lease-up, numbers number have shows July, students our pre-leasing no not consistent leases identify have for Thus As removed request, in returning up proactively Given accommodations. as it June, time and to than as our earlier included

At the Our very and diligently the ordinary normal process lease-up very and until became accommodations, from any never annual both re-lease lease-up attempt unsuccessful end to subject the process, is end show. to that no possession and we process. request essentially of re-lets final no re-let and their to no statistics, shows show annual our accommodations then of took also the remove leasing of actual a

this over has that of the the occupancies the by reasons XXX As the clear, loss of points, we total XX.X% we just in versus process always fall exceed also basis only have the years, our our processes that commented net the of of commented points to over of the XX a is typically leasing the our year. years of lose average to typically final basis net peers. having report occupancy final With been market average be final statistics reflected we lease-up been To we discussed. the XX impacts our fall always We've of believe over each occupancy. years administration we one often diligent industry

guarantor. going This part being exhaustive an fall, to the them process properties currently to e-mail show?" no steps not have to for a of already But roommate each with our We directly to there's and leases rather, the we At we series and incoming discussions leases, with call proactively have coordinating engagement being no-show year's other to "Are XX,XXX ask and a of new have residents resident efforts expedite position this us undertaken they're leased to opportunity open related that communications or communication know actually undertake already to communication their that process with As latter total if you XX,XXX to actions our returning giving unit, residents, take and of to this required possession process, with of not items. XX,XXX are informational facilitate units a in an do move-in coming. to possibility market, let speak or includes as matching, risk. representing of renewal this regard a taken their planning category, have the we well each greater and and the guarantor, as attempt resident you

increase And in potential person to new In relet of this leases phone as the year, implemented we our than dialogue total this our date and our prior over have requested XX,XXX returning were time, made calls. which our XX% successfully of reflect renewals. of with addition standard again usual of have XX% year's At incoming and do no-show an activity. a direct e-mail earlier numbers this protocols, had

the While COVID, is know we due process. expedite some our this know portion of to degree the do to is what directly increase increase to to yet year prior over we do due the same-day efforts not

year. to no-show the basis XXX prior the approximately this opposed July year. current in potential yesterday, in XXX versus year. as no The XXX to X,XXX the the XXX we current potential basis to of year regard time represents prior relet for have as request, identified shows XXth, currently year we As in prior XXX combined points potential total lost occupancy relet compared of have With points at

show the in the week typically concert being -- shows the first historically due. with of the number of no August addition, increase no rent first In in installment

due last impact XXX processes, example, XX to potential no points final Through a managed as XXX basis shows August an Xth we XXth reletting. the of no shows diminishment of of of As successful July to normal the hit last on high and our year. only successfully year, actual

to and and identification determine our payments processes did relets in of potential no expedite historical increases first in if normal above during fact rent week occur, monitor usual. accelerate or closely or of shows than will We earlier increases these shows August no if potential the to efforts

in show fully net points XXX no on more the further a cases is applications to representing of potential leased relet leasing shows backfill the this facilitate this traffic, that we and fewer being challenging. year's prior in to we wait in year previously like process, year no basis these regard velocity properties potential stages the may activities de-densification I'd our not as many mostly and opportunities having cases to and to the our many properties to that leasing last being X,XXX, request. be COVID I'm July list bearings relet due leased The environment likely year universities relet ability in will rely late fewer While and discussed request increased and of have housing will occupancy. show with historical with of velocity lost levels to to accelerate relet fall to COVID. With -- This lease-up, sorry no beyond XXth, combined to and discuss both

tracking university universities on-campus serve, showers regard of XX in the a product XXX,XXX cutting beds by potential beds. be and bathrooms toilets XX,XXX time, facilities, bathing small With to reduced bedrooms for those in much community sharing as have activities housing, the the control we a served double beds. XX in the their looking summer and these XX singles, confined and of share students on-campus the this serve, upon spread on-campus beds de-densify to in we thus at XXX,XXX type as as on-campus with common owned existed sanitization Based of As ideal sinks, of over universities halls XX,XXX XX de-densification we older preference the are capacity XX many earlier largely this the than reduction number resulting this by our half de-densifying to of of the restroom converting by to students less common residence of approximately spaces, viruses. minimize in discussed are where many to the markets to as with in product ability to consumer traditional

not statistics intact to further, growth leased, final no leasing and due final this representing COVID. that, beds briefly reflected portfolio's results to mix XXX more increases, regard wave increase compared At levels is decreases our are an in as in total the only X,XXX adjusted design that for de-densification on with covering XX.X% variance housing. as In additional via remaining the vacant of rental beds. report to average addition, de-densification we've the any to of quarantine time, to second have to or see housing, in compliance reduction over X,XXX own that or fall? levels that university average shows time, at demand in we're touch to a an response the seen additional pleased basis and average plans, additional are positive I'd XX,XXX place XX rate off-campus beds of upcoming with the like these on-campus to capacity discuss stages prior at not, on-campus markets turn rent coronavirus that off-line occur, XX yet of stays points have academic place use impacting on-campus we not and the over -- of in on bed, where that Should not the of the to-date, we this impacted have our Whether With ultimately where of final also the rent are on-campus beds it our than increase our or total is actual As year. yet With resulting per a it this upon loss our rate given depends XX a the are in operations X.X% rent. I'll administering to Jennifer of how $XXX occurring associated a leases an relets. only XX the leases velocity associated universities the taking universities of year occur. with the to hopeful rent largely we mandates may to in yet beds we portfolio fact

Jennifer Beese

Bill. Thanks

virus exterior the communities based in crisis. mid-rise been or less interaction. or types in our the for university revenue operations our for our units, our with quarter directly was partnerships, of last how on our has unit objectives elevator a to performance, and the COVID-XX. relief business XX.X%, which combined of which by typically operating highlights portfolio summer townhome pandemic, able quarter, Campus which to for the common foregone this the portfolio core accommodate portfolio each a rent students since Page same-store and under of decrease waived and designated American mid-March, revenues by conference property in banks through single-point supplemental coronavirus either systems additional eight X.X% our rely mitigation of was on by expected, through was our different transitioning As of focused and increased S-X X% side outlined nature for as and strategies by response to feature entries by In our NOI property have products norms revenues the reserves creating made circulation residents. garden-style that were buildings area consists resident is for new community. expenses circulate bad decreasing impacted to team XX% fees, our was in the we and essential preparations the and This the require on Over team our high-rise use on operating officially Bill to operational addressing The mitigation. debt property the of amid XX.X%. apartment resulted interior balance which followed of offset XX% partially camp common savings entries, financial Understanding

As the “Be a with Be safe. and of RB smart. your part of maker our are COVID part.” operational Lysol implementing collaborating Do plan, program. comprehensive we

operational to and to policies, operating resident promotion education, staff approach in broken pandemic the accountability environment responsibility. a and Our specifications, components: and can four-key material down student be of

entries, analysis us aspects the guidelines, have ACC operational entries, disinfecting Simply In response highlight which these approximately team touchless To involvement restrooms amenities buttons. continuously communities. has of and each incorporated of our $X the handles, would of with every were door best spaces areas and fixtures enhance our wipe put building sanitization public touchless promoting from pulls surface applied self-cleans elevator practices. and RB-Lysol addition also of of where has close strategically the towel surface program in The desks, distancing, plan. touch to dispensers. The identified sanitization information Do the at program. contaminants EPA to is door area implementation gave began which entry public further public safe. installed operations with Be some smart. the while public trash were among This essential “Be in a recycling collaboration stations community will dispensers bathroom to to following overlays, chemical surface ACC's highlighted touch of million. and CDC Antimicrobial occupancies soap lobbies, areas. and high-touch the placed student areas single-point the replaced door minimize Signage promote on annual Hand elevator your a all areas touchscreens will surface been interaction the receptacles, point that policies operation elevators, part.�� at items maximum evaluated expense greatly stations off others handles, and begin high-touch needed the that throughout to $X.X and occur. recommended paper physical points, foot analysis, reception touchless and

are ACC providing spaces to residents residents to regulations cleaning leaving education self-checklist overhauled at updated the with policies and before a student use daily responsibilities, community addressing and health their code of a comprehensively and resident procedures. that rules of our perform also assist unit. amenity our COVID-XX their every has We also for conduct addresses wellness student

with and procedures policies proud these are cleaning We RB-Lysol. have co-written to

that approved surfaces. COVID-XX to virus U.S. hard product recently against when causes first Environmental the Agency as test the effective the Lysol non-core spray Protection used disinfectant As on

Our products frequency housing revised including de-clean and space and each in our has surface high-touch cleaning student the communities. areas of type procedures regimen, customized point of for functional

prepare will according bedroom will to Confident Lysol will bedroom. ready we broken and and products And enters unit and As place protocols. unit co-written and their room the student doors, seal with we be Clean the resident on we not the Lysol unit until make which bedroom turn and disinfect units, Lysol each and a

to physical decentralized we've As and process to we order make in our distancing. touch promote welcome free our students, move-in strived

Our operational issued and residents new along engagement for gloves and equipment for with each policies with as staff as have safe been guidelines use. well have other masks, their other

campaign educate will out through brochures reach e-mail and programming. Life and also Living Healthy virtual We our virtual a Residence residents

Residence Our health residents. will of our in personal the and and programming initiatives Life wellness academic success support

promoting While education part. is Be among most safe. self-accountability and the is to smart. part your critical of key our perhaps current understanding residents. the the Do responsibility environment, Be program

such, the part is collectively the individual virus of the of mitigating important most residents. of the spread actions As our

fall now home new this that our ACC our have been will we responsibility Already, embrace become distancing, turn knowledge personal team. teams will physical to I'd work communities. our the for unprecedented for over For our call to unprecedented the the see sanitization delighted like college policies the I that, who during our a entire personal student activity. are tremendous far fall times. done will on-site residents William, the And particularly to has norms and semester, residents. behavioral With we these practices new investment so for discuss our XXXX have responsibility residents thank at

William Talbot

completed we phase necessary permits development State all Health Thanks of to for received including I for all Jennifer. Beginning with Disney College and report Program Sciences. San this second our to housing Francisco USC be the expected pleased occupancy am at projects for that deliveries, and have XXXX our owned projects August,

Disney, potential to project occupancy despite are not do discussions based reopened based XXXX. with anticipate the on capacity has experiencing regards World targeted in to time from and onboarding. to Disney Project developments With currently Disney we budget, for Walt labor while limited Flamingo of XXXX on the fall reopening we to Crossings, schedule targeted their current COVID-XX, and those impacts occupancy open the on disruption on are While

greater in the terms will we fluid, XXXX Walt project all lease remains in the lease, for project Through participants situation X,XXX the the While based forma World's a our Disney convert Disney To portfolio. these program. with intern part the a the beds provisions once of first right the time, in additional officials alternate hotel filled employees prolonged X,XXX regards ground San in mandated of January the has available ready have recommences. pro of program fall on-campus of a to than ground have backup to to extent hospitality to State DCP intended significantly Orlando participants of open to to or the August, Each DCP along efforts. to primary occupy available in right as have the housing which amount increasing their With beds to part the of right equal the provision continues the the project all has and where we program Francisco returns suspended de-densification period as for of to for the uses be offer university reduce XXXX manage development's to the we use. University, has have to

is XX% single discussions continue Our San capacity potential no performing the Health marketing working leasing summer process we the Sciences a leasing that duties this the the State open configuration at under with academic and license the project occupancy administrative this anticipate for year. will to regards Francisco through university, continued with After and operating project will There the a to II, agreement university. With for situation remains return XX% capacity the and we for activity and are Phase and bed XXXX, we designed are fall. fully work monitor spring and currently with pre-leased show to and closely USC for to fall.

QX update call. will a comprehensive deliveries all on We on fall our provide the

PX on-campus Moving to our business.

of levels XX of in have strong development pre various pipeline development. on-campus We with projects a

First, we originally our construction in Georgetown project planned. and year as closing at this of QX University of anticipate on third-party commencement

to anticipated three of Northeastern, COVID-XX, by Virginia Commonwealth Berkeley due on-campus projects and California, currently all We be all next for Princeton, and third-party suspended However, scope, projects and Upper through predevelopment awards continue UC are housing seen in UC continue – the a Berkeley numerous delivery until make structure, Hearst and some on And COVID-XX, to opportunities. XXXX. with and our previously early feasibility, projects have year. pipeline expect XXXX at not of MIT, yet disruptions in initiatives to in predevelopment while Concordia vibrant to of and timing Irvine delayed Concordia, see delayed the our stages University we close and delivering on future Concordia of XXXX and West California, University we fees The University. we Berkeley fall caused progress targeting UC construction pursue University, delivery finalized. commence Virginia targeting been and fall in and with Irvine have active development procurement procurements announced temporarily Overall, final to

that Bill As to preference more across beds heavily traditional baths. and older de-densify within if more of isolation had the easily unit. country to housing in weighted occur universities on-campus allow community suite-style impacted consisting sanitization Consumer is to of dorms mentioned with his remarks, also needed accommodations and modern apartment primarily have the

in housing our In to equity-based addition, revenue due to models de-densification as will and update order structures financing ACE like sheet other and including impacts, financing project-based universities their financial well as streams off-balance reduced utilize related both program. stock

the established is We positioned well on And facts need housing of that expanding the expect financing partner on-campus of modernization ACC opportunity. method. these the further capitalize for as the this best-in-class believe combination will outdated the to accelerate utilizing PX

In arise will may economic investments what execute corresponding positioning on-campus, an be opportunistic we and environment. is on from itself addition to that expanding also to the COVID-XX believe ACC crisis opportunity

Given the market to be of private continues disconnect the us environment. prohibitive cost a execute equity public for to valuations, on mini investments to that our current is it recent in

equity growth. external our As strategy such, pursue we order joint venture in to are expanding

minimal a contribute assets invest as equity fund identify or Eastdil and GP. engaged are have advisers which We in ACC or existing to currently venture in as market Secured joint equity sources minority would the financial for

outperformance, identifying equity requiring our FFO to of crisis We structure sheet and both returns drive identification external benefit outsized while external with dispositions via fees economic upon utilize minimal accretive continues. will equity if partners. this also in partnership of on the growth core form partners our through In and ACC of ACC the off-balance the executing our while capital promotes further current strategic that balance will our liquidity opportunities to off-balance pursue growth investment investment investments. offering to addition and access on for more sheet allow plan preserve generation to ACC sheet of to existing and for the to competency potentially Allianz, EPS proven execute

as we progress. market make will We the keep up-to-date

construction off beds markets. XXXX. XX% academic delivered the own continue new markets reflecting is but to delivered construction, tracking were Finally, for looking under supply this new yet not Within supply reductions additional XXXX, a since beds XX% number see our X,XXX beds of year, to potential of XXXX we XX in planned across our planned a for under of XX%. XXXX favorable fall currently in Even decline markets, XX,XXX fall year's the to decline forward with in the current ACC's if lowest we are beds all

with on our results. market these the I call. update turn over quarter now to to will Daniel third our to respect financial will discuss it potential We deliveries

Daniel Perry

William. Thanks,

$XX.X of FFOM per we As million total the share. diluted $X.XX night, for or was last quarter fully second XXXX reported

As across a orders governmental quarter the COVID-XX the shelter into significantly has associated in the place of QX country. effects been was by put discussed, effect impacted and

million believe due we impacted cannot was related and $XX related item owned to approximately relief, debt bad to every completely increased and fees this situations camp Overall, FFOM rent pandemic While was the the isolate revenue loss property negatively other COVID by million surrounding we items. $XX in revenue, lost to $XX.X quarter. summer pandemic, waives million

operating were $X property the expenses in the revenue, lost to we and lower offsetting Somewhat budgeted, owned spend originally except million property taxes. area able than insurance were of reduce for each uncontrollables as

approximately to $X.X due $XXX,XXX million paid and venture lower. property earnings in expense less joint university rent was outperformance lower-than-originally-budgeted being and partners lessor a reduction As the was result our ground lease a NOI, approximately non-controlling partners' to interest of ground

our spring a approximately participating and also $XXX,XXX $X refunding universities was properties income contribution lower of of FFOM to from business in lower, these portion fee segments. properties almost million at rents on-campus both management due third-party Additionally, was

pandemic current of in the regard that approximately you the issuing able couple in-place we not current of leases year, for want plan And not the to do of are quarter. first for represent we Lastly, will make you to created universities the to XXXX year academic close July properties. any uncertainty third-party some $XXX,XXX out will We however effect a time. at expense we create with delinquencies original to curriculum this pandemic Due continued coming substantial as by our the quarter. materially delivery relative savings and academic to were majority ultimate in expect expect the actions the by G&A of months taken new last and additional our the XXXX guidance the at earnings of of we the differ overhead should of month the from impacts recent aware months.

approximately in camp to third in also We have other to fees of range income, the we are the million in regards anticipated and business the to continue communicated us expected of with refunds. we to $X which remainder million, finally And some additional to the keep continuing income expect still portfolio the quarter. to in of to little-to-no of $X.X and for late summer expected on-campus originally refunds within waive summer which million ACE $X in is should convenience year, through loss current range academic our other $X.X million term, the remainder the be the expected result of combined fees

originally it were projects California three development until University believe now projects that income be to in likely Irvine, the we expected and million scheduled development commence discussed, XXXX. is in XXXX fee a delayed at to will University, third-party $X the contribute XXXX. William Berkeley These of Concordia As in combined

to pandemic policies our healthy the the some In operating well-received and balance balance to million sheet reduce financial revolving bond $XXX be strong using meantime, university improved sheet longer proceeds future, confidence the balance term, return Bill normalized to continued on the offering company's billion company's in of that results give and disruption. will consumer facility. outstanding there will the sentiment allow liquidity a to immediate liquidity absorb While XX-year the a discussed us further substantial the us $X the into impacts the We and June have credit we levels. with

June XXXX. on million in with had debt remaining of secured of XX, revolver maturities in As manageable $XXX $XXX debt in XXXX million our and availability maturing over mortgage a we no

have supplemental XXXX, page projects As of million we S-XX in the -- including on delivery through earnings currently detailed $XXX under capital for remaining only development our needs. development all

value company's X.X and was debt-to-total-asset As of debt-to-EBITDA June was XX.X% XX, the net times.

to our this we due page elevated feel we to Although have are to discussed, the back call. into about low targets to the the continue the historically plan the ratios short-term debt-to-EBITDA With times disruption lay out portion at time confident mid-XX% relative that, the we will range. question-and-answer and the back start leverage COVID-related five communicated which S-XX, the on six bring temporarily capital it turn of range the debt-to-total-assets high operator to to I'll to company's back

Operator

go begin Our question question-and-answer We the John Pawlowski come Green session. from will Advisors. [Operator now first Instructions] will Street Please with ahead.

John Pawlowski

market scenario project? very I'm reinstatement William, What's the Disney you plan? give curious of to employees period case given program. much. a thanks to -- you has around prolonged the just would into you for Hey, pivot open timing what the a to time look where the best internship or and the hotel-like just framework a

Bill Bayless

one. publicly undertaking approach they're to in terms is how that -- and can take this follow going pretty it. actually their is and go of statements to And you It obviously and Bill much Yes. Disney ahead their

have College into prolonged the Disney exactly relates as what when William Certainly likely it As said at as is. play to comes occupancy. and this our Program looked year not in we prepared back remarks, having

occurring. anticipate stated. like perspective think we we remind so very we careful from we structured a beyond that transaction be a and something ground one everyone, we we were thoughtful perspective and want the And to think I of this when when design this about period lease thing want prolonged, to have The to

it backup Rather design, alternatives portfolio. housing things And made for adaptable doing so, we multifamily being units that offering look the Disney and to convert part the the college typical terms traditional how a than hospitality William when in that referenced program really more with and College cast to those developed achieve to Program we through employee their or participants. it we dividing broader of do furniture the college we in of the privacy at walls members Disney as

be From that. that the usually program Program positioned when beds and available XX,XXX. first well in from comes levels decision to historical a thousands thing a we're We're over -- of for the available to foremost, do is College actual perspective, January. an we so we transition, want back. pinnacle to Disney make participants that the And not to first over X,XXX just that And up going do fill, have are of only have last

not don't for be stabilization. our Disney there position in so, the is use and intended a And want we for to where long-term

ongoing perspectives with to prudent as decision and an are, we're if always having timelines so ongoing think But already things on are, those in them. We're that. the to a on that the evolve it to content. Disney original continued intended early how we've about we the is conversations to conversations And do their all for we their basis these over switch at stages use make time thing And prudent. any what to long-term in ability were want to stabilization last what circumvent

John Pawlowski

in Jennifer, trajectory things of decisions. pretty the or ground pretty on velocity well university terms I Then me. and now. But changing going cancellations last Understood. are is or Okay. question reletting leasing for risk seems modest right Bill and quickly understand

give on examples in recent where trying as which to So you've the us the pain is things notice understand the points we to ground next of a some you could cancellation so, geography, spiked seen have kind date. healthy just of months of portfolio playbook weeks? change, going within And these schools forward few

Bill Bayless

schools in show show don't for variation our hybrid at in relative you or of there's you and you to online, though. any Yes. and -- down we no as really coming statistics ahead request. we'll example It for be accordingly no at the that to break conclusions and go not you relates trends immediate and category person request draw those some great the and When short-term see categories either relet can it weeks, point look to a look the relet

into at example, across we For have at in-person And portfolio of you reletting, mirror of represent type percentage in balance no you XXX look XXX same those much breakdown. have we and universities, beds XXX they pretty the online universities. get universities areas. the at that potential shows when hybrid at those our XX When identified, the

have And so we not.

publicly that June we but those time To those situations to we to actually we said early And the announced online. one a went of examples and And have can speak university in Hall go Fresno hey see from We cancellation new in going Phase continued we're cancellations. in both of some both have also those early where they two to announcement, leasing Fresno activity, leasing and had activity. at of are and months of did where the USC. predominantly actually at out saw Currie also properties June, held at we two our equal where direct ground

still an whole, four a relets. now And category all X% since you pre-leased XX.X% in we've no as only were when we mentioned add hit the XX%. And had XX% right occupancy portfolio, were online a XX%, so, release potential of they that our We're a look when same-store we shows properties, at announcement earnings as the and at. At we when we're at as -- you announced all at potential time announced. We're actually today. and USC total

show, is focused is if -- on and significant delivery, seen -- X, that looking universities' positive. no in on evolve, you velocity cautious just at Leasing the the no when data do look disparate. what all said that days. and and data, at we're but be to nature we John, activity uber seem relets, of trending potential watching The Those optimistic. there guess a word yet it through haven't certainly absolutely progress XX and the all seeing curriculum this you When time. are and in where optimism we're And not over, as we of leasing the the good as that end, trending. in we way question – variations itself, classification things there's how any cautious those shows the forward and focused that's and daily proper so, trends just asked, are of administration And relet and in is that doesn't are managing I the XX shows point no the bit for trends crosses news. And there's we highly we're it the looking very

probably uncertain related an I we hope most thing COVID. environment that's positive to So think the in for could

John Pawlowski

very Makes Okay. Thanks sense. much.

Bill Bayless

Thank you, John.

Operator

from Our next come Goldfarb Please question Piper with Sandler. will Alexander go ahead.

Alexander Goldfarb

down good there. Hey, morning

that their came just Cal State low, in as statements, give second Earlier Northeast. States an it recent wave, line lot thinking? the sort in still but update those just questioning, this you've rate So first, university continuing out nowhere Bill, is you near the was a and year of on a really of modify then of along high debt as had can

no a you sports what program, about X start to because versus but to thinking cancel little read of can as switching just saying, So that we're cancel thinking we bit and online, curious a happening, hybrid, talk going the go are sort in-person, are September about, date. universities what's we what the school approach headlines actually actually about universities with the

Bill Bayless

Candidly, they're guidelines preparing are interaction meet though Yes. university in doing issued and thing headline, CDC all we thinking consistent of their we're almost every it's what the saying it the we're hybrid, for identical is social the case. has the And university and conversation in-person classroom preparation we're or is this first distancing. of almost that the is, with fall online. in to single just were areas the predominantly And And category just it's doesn't having. matter they

environment. to that in an compliant, is with social it And to classrooms, active is everything distance have where online being extent so, instruction, the you done COVID

online ability between and The virtually, to in-person is have that have that indeed we it's none set to second up and word deliver I curriculum or certain. is ability deliver that that they the has in an think capability, university university I every all the and and serve, virtually I a going think, flexibility is, the component cannot eliminate every not duration great. It's have curriculum they which same the two, time dual

at based impacts not de-densification, what of in William's four really they and pandemic. and going They've that has housing us, have is the there at certainly they when households on look community I have and then in situation. And been we can their And that university their are script, products, it spring. is sorry, -- the is had they and assessed the their don't in to thought have do in-suite de-densification. products that. guess, was ability where you directly and modify to -- which two discussion evidenced And my you things the had you have time toward had done through assess that that those how into, bath gets work most geared so look in the de-densification those to upon What pre self-isolate bath when time they're and to areas really

and and college may of I in not fully circumstances up the reporting, the category ground think, adjust universities universities the come regardless this have of so, in students environment. on And had -- in the spring, have everything on based that to have delivery, to have may so online, they in-person, up, set chaotic back set to, their curriculum have but as rather COVID order we need situation towns that

Alexander Goldfarb

their view is those decisions But basically are that universities have that set decisions set. your

that some say. get don't be they now You some we're going sense waffling or in-person to a will and are that

Bill Bayless

look you are gets the we're and of percentage operation a universities I Again, and may schedule university have with student that administrative when said we're higher universities every hybrid. irrelevant have and component I plan. in-person a their That And then think, higher online. a class at the that guarantee, headline there is they said, the of in-person and

administration at of three institutions. in-person, components so, of And really it's online and categories are the all

don't the have change to they're of that plans. they don't say, adjusting And headline they don't they just have operational categorization. to necessarily -- So their

is we universities one delivery the bit, So curriculum versus of how in-person. hear a approaching lot a things online the that they're of little of

lecture or I'm comfortable. the are online; you hey, whether in that immunocompromised have Well, professor kids you that allow If saying, in hall. the older res and hey, the deliver they're say, is we'll a not classroom, to they

And together putting are and operating focused and flexible as under. -- on get it not They're they're these so, how in very innovative as categorized into these headline they're what they're universities plans.

market's As obviously, interest the this. focused we, in given are

Alexander Goldfarb

Street's Yes. interest And well. Wall as

have sure the So second hit, going occupancy just back I is, make the just I question to right. numbers want to

hit university versus a a about then, X.X% I potential year. X.X% spoke was for the think, year, But potential mentioned only online X%, exposure. I but You that thought last this you

that we more is So before versus I X.X%, the should on? those come way. potential answer this students want you de-densification then, force numbers is just X.X% the are understanding your it the correctly. focus to to the headline And may that that really we're

Bill Bayless

correct. And prior total where going you subcomponent discussed four a X% taking properties are the to in total And show us, XXX portfolio, basis looking no the for the four same-store properties no are at total then deducting year. that from at the was to same-store in points potential of that request properties, those And relets are points Yes. currently the clarify versus the basis combined four that of related everybody, and the X% pre-leased relet they're at to percent online universities. we from XXX that XX only broader the XX. shows, Those to four a potential that currently those and

last process managed So we And bps a as being a year. basis XX mentioned XXX impact. only normal I the that year to in points year, normal to down is of variance total

have it cautious cautioned we're relates anything anything is about is talk Now thing that this that a the administering. ordinary optimism and when that we we year to but normal other as

fully to our year it was or at make as it's leased time, be harder may bps this with close to gap. assume XX, difficult last many And above would in we that that going historic normal XXX XX% look so not managing leased to down we and at when ordinary of this which environment properties success more

assessment risk out indeed So is those looking prior viewed we the And in our in XXX our optimistic being late to shows this is as at lead total when basis to we XX,XXX points. of moment what time risk that's at surge. relet beds may that have. is of on-campus at time look now There that total into XXX bogey you a at as there as offline appropriately that de-densification bps moment we're said that taken we upside internal consideration due potential this the to taking quarantine

Alexander Goldfarb

very Thanks much, Bill.

Bill Bayless

In demand not COVID.

Alexander Goldfarb

Thanks, Well, right. Yes. Bill.

Operator

Our next go Bank of with come Alua Askarbek America. question Please from will ahead.

Alua Askarbek

getting I of are the XXXX-XXXX? might question. fall yet. leasing I be ahead here myself thinking XXXX and terms school In leasing the with how of taking for in you Thank strategy. everyone. following my you not realize Hi, year XXXX guys over But about

Bill Bayless

your that believe year academic a beyond A about love going next for COVID. rate regard. like couple And this question touched on because We the the we And return having growth intact be there forward fall we should one of world things in all to do lease-up. year. thinking I in some normalcy is certainly rental briefly XXXX positive and still

the housing. did impact student And of fundamentals that the not saw really in COVID so pricing crisis you

terms incredibly next update XX% year. that an next XX% year expected in down XX% year picture and heard so this going to also positively also. that another it's of into we in script to declining You William's positive go the And supply view after

housing ahead. But also could that unknown the and have related service their to develop as them of those component universities the going to have how we evolve. how looked believe ongoing is. an activity new Any of other out of know XX,XXX is years older in facilities take that things it's of choose undesirable particular beds. don't at to impact on-campus to taken going The quickly that those variable the we and on-campus de-densification has that one place is And opportunity

throughout have and that when business -- business the is. facing. all at what period. impacts very It optimistic do the studying outlook think we fundamentals America When our of we so crisis to about get us think And post-COVID where that really deal is segment on we're makes we our about a short-term together we're bullish beyond this and the very crisis, really we cautious with this we environment we look

Alua Askarbek

little that a up bit. Following on

saw I fall -- do In that just quarter for think this But assume strategy down significantly on-campus to marketing, were change of lack probably advertising. expenses this in process? terms from Is going that I of you marketing?

Bill Bayless

go And is looking all And year. of you first How at. we're own go had dollars good --- that of that in is have we through know our have we You spend what a we as savings marketing through fantastic progress. our QX. because significant this we cost marketing the analysis our question over obviously leasing as numbers, pretty

marketing to revenue XXX on we more that replaced have environment. basis activities, we think that to obviously a basis. the dollar but -- digital traditionally ultimately marketing in COVID media it's all related point dollars spend that evaluate has benefit Now this decrease and social And the much that's currently lot been at candidly with impact we gap us is rather that. a that causing activities the of don't look to and of cost-effective incremental appropriately have real But

a know, activities basis undertake. annual that the an expensive dollars marketing our of significant on we You amount

call promotional giving away -- what out activities t-shirts. on-campus the X,XXX getting there I'll For

that stadium arenas our American -- on athletic our is into expense colleges of the programs. and the Our football And biggest of of university the see every marketing things lack sports lease-up of PX you of There's throughout a tickets because Communities. back Wilhelm those But to in world advertising had affiliation and that lot us when go we overall the things. those and benefit marketing available Campus basketball contracts haven't with are of recognition. this Jamie in the

so forward. causing to is talked And about principles it see eight what going have the may one to opportunity. benefits COVID we're of it forward. all giving with and through and us give through impactful things can't going the you your assessment. that we're I it through to tell from learn an that question but answer you that yet, go guiding our the this is learning that dollars as marketing can be We unique I going attempt evaluate But us to efficient to process in our to more

Alua Askarbek

you. Thank

Operator

Our question come Wurschmidt Austin ahead. KeyBanc. with from Please next will go

Austin Wurschmidt

And you mentioned believe points. leasing more de-densified at I material on-campus acceleration seen housing. thank for velocity you you little was And that all Thanks, haven't acceleration the have hoping detail on Great. any a I guys. the and the de-densification. data But for that schools

to a to what have would to communicated leasing? second hotels attribute do point one the have recent find in to source other students housing? So even that that this they've on like own use needs plan they're their surge schools you at fill you if if or accommodations their any housing off-campus de-densified that And of sense then to

Bill Bayless

are and you when have processes conveying throes of these universities And the not bless in they those to the given the data we And have have God that processes. our administering because -- relationships we only in all at proactive that many been that and it. administration that that of No. are you look -- in cases the the university implementing. depth us these of are with through they officials universities the then And processes and

our all There's XX we we've us surge have across an at we XX say why seen that at board so XX. the increase in we just seen versus another trending, hopeful. seen coming. while the which And And that haven't that's the velocities, differentiation universities makes in versus a

we since from numbers, the to is did example their bed master lease related did together an over the and a release we and weekend this As put Friday's XXX call weekend de-densification. and over temple got our

that benefit is of that. Again we are lead their as issue that's one these that process the And go taking have traffic don't materialize. then we'll from fill we through see beds have we're we're start but that that places to just yet so from And But will see out the evidence processes the and it to to situation. hopeful that some place. through they assignment positive increased and hopeful,

having more people just need it's from think I delay. to

Austin Wurschmidt

should The we've traditional thinking the million $XXX dispositions Yes. future the pointed capital are construction million today, transaction do we in needs future to, kind remaining you of annual -- past committed fairway annually? And for more Understood. have you about capital then one down thinking seen versus just $XXX acquisitions. leverage how Appreciate is that just the in versus that you're to years projects where your deals think that you're starts? that. then lease-up the to how And or development recent about allocation, under prioritizing you the secondly on about

Daniel Perry

out is continue plan this supplemental, been lay Austin, target fund the that to to pipeline amount of Yes Daniel. -- the in we dispositions And same as about. talking we we've on the allocation development our on capital

in would our currently sell to to additional our or partnership his beyond of can partnership be But come have our place have may what that in into we would in able additional prepared opportunity expand situation opportunistic One for a primarily twofold. development that to those continued developments that continue COVID remarks to venture joint growth and on-camp place to For William we talked we assets really with our unfolds. as future sheet capital Allianz position sources on in the external and investment that pipeline. desire even reserve joint a of expansion fund balance statistics. about strategic venture also take the to up us to manage put so be in opportunities advantage the leverage to

investment to for look joint do then development. in an balance And those capacity as that continue opportunities, as, want sheet venture like acquisition we've reserve we – we to through off structure upside to balance on far about again, would our past we sheet the So talked

Austin Wurschmidt

how large JV of from Any what or considering, at sense acquisition of just point opportunity an set the you're perspective? this is a

Daniel Perry

Yes.

acquisition assessing. -- we're well still an I perspective think from

off of where the to in $XXX would type But that with you this stress comes want regard at ton year's a have and we we looking investment what that a to And at out of that. to seen $X look haven't of there what million you're yet. Obviously, comes We billion see structure program. lease-up off properties type when venture to a size meet typical typically pursue. joint comes criteria

Austin Wurschmidt

relet And how well versus that the Okay. one properties from some just the are then That's and shows on in leased curious those pre-leasing, break catch-up that was potential that you me. no have how that outlined are buckets the maybe that very from helpful. down potential? last those I three for really does

Bill Bayless

front here cautious. Yes. on second. hang me is one that have to one area have this of we data. one And be that second. data on an the table in of that as items raise Actually I Hang the on

pre-leased, XX.X% have we are our and Okay have properties that And at our we XX% currently currently are relets. show of go, the here properties below at relets. greater, no that our XX% or XX% we of

relets a little properties those below at eliminates XX% currently already no those gives property a relet. get are year. so, today you're request for potential current the show a where us exposure a leased, lease greater fully at Obviously in And a risk every you of we how terms the that of or those on typical of that in do XX% backfilling

through administer we is breakdown XX very what monitoring. closer that as really so – XX/XX a And we're that closely to

and had in out identified one identified is, of push that the of flush in Now de-densification result students the that we of beds we does did purpose. to attempted reasons early that that we university the for those off-campus to hopes relet beds no have all those shows have the want

where being so certainly that's in that line the of at opportunity, And hope we we of year up. backfill to this the harder that's versus risk an XXX But look kind basis of that. because environment and points XXX

Austin Wurschmidt

that. Appreciate Got it. the detail. Thanks for

Operator

with come Nick Citi. question from Please ahead. Joseph go next will Our

Michael Bilerman

Michael Bilerman here it's Hey, with Nick.

language the any the year pandemic? well doing for for is off-campus to the change how in variables are questions, programs? for as that's your or structure there changes you're of or of lease if there couple event any lease thinking a Just changed school language academic ACE the as both the that leasing upcoming Just

Bill Bayless

apartment Yes. a at no. Michael and positive the is that's no. answer when privately we communities look marketed And off-campus very and our

why. explain me Let

that Our when activities or to are no of the And actions the you effect one way our rental. had in private form it. undertake. shape in of any spring, shutting explain in look every XX.X% any way full properties force universities no lease off-campus way this leases and remained collection down we in the single we is lease And every shape -- nor universities of that tied in they at

into anything obligated lease executed. If have apartment. employer and an that with any a happens toward that employer that You your apartment you near not in you and lease major you're major no the move employment, way longer

contingent and are we that leases upon that our so, not or that. do form draw way a want added we have correlation any shape And any in language to not

agreements. our we As majority with leases on-campus with those where institutions lease beds beds where licensing place, it relates lease have not you under the students. the refunds and saw have the the the do to Those take agreements, master are of agreements the university

And direct relationship do there. have so the we not

administered community de-densification in coming. it to the an they bath, of duress was on decision were The with just go did made they the partner how that for a I is they our versus they were in not that we in and the decision partake the obligated that community other they thing that in that that universities chance to But and those not and and they universities, we last go those were done given of advance pointed because and out under, licensing urgency haven't hall through like But off-campus everybody in-suite getting agreements call made in had they agreements. referenced rather now bath given know we us a assessment the the earlier to on are the the refunds. refunds residence sense those hadn't students having participate facilities panic the

we economic necessary reasons. experienced need And to the that so, a some this were time the of related anything impacts at not level for do to resident those

Michael Bilerman

you and a But of are you communities. seen security the in in the As U.S. you're And as virus within place of and think lot a the are have teenagers. mitigate they're things your about those teenagers we've guys to things. lot -- spread of referenced cases across putting safety kids the kids abiding not by

schools protect to financially the going revenue spread So shut and we with do in a of how how that similar debt? in to the spring, or the do communities expect yourself say we starts Like level virus expect things impacts portfolio that? that you have should things of the other or to at XX% should -- terms in let's of in and and the you event refunds the that Universities refunds you are the own bad happened what like do what or down that

Bill Bayless

Yes.

of privately the schools Firstly -- not market pandemic, is our community the rent portion apartment in as about what break had open the did. larger throughout the the segment before you they action And there, first XX.X% of this talk and leased down ever out by saw we it payment took draconian faced most when which let's having and communities. and

one So for was as outcomes what you in the would we that at that look worst-case no experience when occurred certainly it, regard. prepared

year have were COVID aid of excellent and negatively prepared at in the the buying we money this aid the financial in mentioned remarks, was you academic when the that my need been and all-time the filled financial aid their by upcoming students COVID opportunity look year parents academic financial have Mom and the had assessments based all-time when and year, an dad consideration. to All they for financial assessment that. out At last at I students that in based need of As have had that available impacted people was for economy now the when at was that an securing and education. income they power their unemployment for students hit. part access high, beginning low

the the they and they that grants loans financial needs into for ordinary as student based. hardship normal ability go them has scholarships So year, suffered are this have the that to given academic qualify pell

have they after hit profile, basis economic they a a the improve traditional didn't where them. great when so And unlike in of year to middle the their COVID economy to have opportunity renter the that

nature. they at rent making would a condition for as all financial of to things their that look year the the the position hardship it as that they better based condition now price our we points is of relates in going than was this renting So financial are residents Also on upcoming -- it decisions then.

up more we so we don't is down. universe important the outbreak. an We in online have To the think are switching we mechanisms how point having universities these were thing have delivery campus. think the a to where versus we And -- okay of social curriculum and set going look other don't distancing I up. Everybody leave shutting be we setting that about -- the think discussion it's for We're person. delivery. the classes we're those all university and four "Hey curriculum say And to they is and

And prepared. live is so is in -- this continued We have I better environment. again, everybody much COVID a important. And think we

a operate have that official. leases. XX two-week And property, We do. environment property this they that went throughout We property They we where properties we're did to quarantined search. quarantined. directly they in an that one reported no we contracted XX. COVID. early summer At had cases June to there where involved. did supposed We and XX-month They local We and continued had -- COVID our since all we period have were weren't to have things health outbreak in that students

manageable. is it so And

Dr. campus Frenk a students University already there. ago. as -- couple that to is those -- quarantine the thing of that think think other and cases who's not go to on to and the back higher CNBC in aren't come I was months The he do mom this. about able and do risk of and The the virus surges, Miami And of Julio to severe and back President and we're terms isolate to how that have he's they going fall last products more reference as in we Health speak if working to and the their in official, much want staying you And grandparents is may he students and resilient any in dad talking XX-year-old is was so better talked they're Global I than the like his credential about me to to about to and back many cases through right a so versus I'll are given thing group related this tell they it. it severe former XX appears home how are And and comments. a where university be much demographic XX and

Michael Bilerman

and one higher right? to large universities in your of the make post-COVID you're getting universities the The financially like have How how How to it a which what's can a view lot recognized different markets, the -- in you and And that environment is that is plays side. What's them. of university have all -- come schools impact There to of sort it the League of fair a going but the a significant. going to Ivy overall financial university even like going sort disruption an better, can't world. The sounds about disruption your of on the about for optimistic of you likelihood is for of about an number analogy. the is think other portfolio, clearly of this, are on I retail significant cost system do in terms education it mall best higher not in thinking and through some that's amount going difficulties going of from portfolio as is endowments

Bill Bayless

that as are Yes. when significant across you have the your universities a of put Not won't and the and here, financial thousands going and non-ancillary services. of at that say And strain. of And up that we the the schools at risk certainly there strain colleges that the higher privatization people's and into positioned Institution, going and financial are RX talked moment this. to is certainly for institutions sector economic X, way of to the the the more look and we all the applies certainly that to of have focusing be alluded end to the financial we and always doubt America education back think on portfolio capital at I'm consistent answer don't higher strain State but downturn that about question The toward that There no out there use flagships other Carnegie to in that the COVID is going come have they that on our Power Tier go with associated exist. Because education plays Research, future don't of X and away. we're only we on need

the going an us. that that of end look up it schools student you it and end for going see may those make not So, making provide When may and at to group may modernizing away, actually more housing only for as opportunity relates demand. it also increased smaller to schools that's it could up a drive demand do

completely other want education just at affordability we Ed Princeton time something agree a higher and to which and is public with that's than education serve. staff. a But year valuable. we candidly is and more that only institutions we about the of over stress more the average this is service I which we that private spending $XX,XXX And while is the public is are at faculty the continually the anyone more to tuition point on and become talk valuable of schools flagship dollars a year. for we to that attractive other The $XX,XXX And value in when point you serve at not we macroeconomic think of the out we're institutions $XXX,XXX schools

And so made our the said, that in mistake, no but we one have we're feeling schools the think is you pinch. Again no the in pinch. make we feeling economic acknowledge the criteria choices at us to not. They're long-term this investment again crisis they're well. financial position Everybody what

Michael Bilerman

you. Thank right. All

Bill Bayless

Michael. Thank you,

Operator

from come Our next Neil will ahead. Please Malkin with One. go question Capital

Neil Malkin

guys. Hey, good morning

Bill Bayless

morning. Good

Neil Malkin

next development. potential distressed terms JV platform? maybe inbound back in desire from have this inquiries the as see set you color with years? what the just it I was obviously inbound Obviously you inquiries? you of the distressed the just as side kind to opportunity some JV. that just into capital. maybe go of can the Kind provide opportunities or to Anything maybe to of as assets can some need a want is and But time. selling -- well to Can of maybe understand up grow additional shift you other about maybe to it call the little to out But the the talk to over free -- couple

Bill Bayless

Yes.

something which that the into address First capital is given our part this a and approach, -- our value to we And last on of we And emergence COVID, JV to to to do cost their And has Actually of it Voss, several we capital studied long-term our may has how there this ability our they business mission this candidly works that. have private prior opportunities though as it started you and public a we look my right AMB could we our after XXXX, to plan, certainly turmoil. we lot Accounting our I sheet I've something to more capital it. to has matured and own liquidity to of in like have growth COVID Model consistent clear create beyond and those to But years I've for where come program strategic had only with we relates crisis. the using was XX-year the and much out disconnect strategic how of our made at at core we a create as pursue in executive evolved, between as over this And -- our potential back on model. it without that we're go XX-year the have limited. successfully market a like and having been of of career is years contacts that made only as you Kim COVID. don't Officer very time where when Chief used out. have talking about purview as What we and the want say we're the felt capital the and when before candidly, hate propel sidelines income now there is that company's our with it and looked that thinking all point to consistent means strategic this the we too growth -- with and capital vision on look fee growth third-party been even when and pre-COVID look -- precious shareholders. William the is I mistakes that balance and Prologis had But I'd where been in we five she we advance in Certainly have more back we allocation want capital a their have executed earnings strategic about call at strategy. sitting valuations,

quiver strategic have as create through of dispositions not so basis, or I to this any on to on long-term capital we're And crisis everybody and another joint it liquidity efforts but aware we excellent is is think why it needs why prolonged. to a growth that. pursuing this vehicle for relates ventures Daniel out as also may is appropriately chosen a And an that call be as pointed very make our only it

Neil Malkin

of looks think they Yes, But and May leases now? then these what et just collections aid back of to quarter expected. And that the trend you is about talked of new it for all that then likely delinquency call sort of start like. as The are makes that general. kind kind based you August-September as and do of right I your is -- roll delinquencies will is what year July opposed leases kind collections gradually It transfer ticking sense. up your it the levels that. or for which given appreciate over on things -- looks financial the historical to as cetera, like delinquency in second you

Bill Bayless

mean academic August-September if don't we is to next back over I know expectation but to with payments, the we'll that a that -- certainly the our Yes, expectation our will I levels see immediately year. historical the go back migration

Neil Malkin

Okay. Then, in like about the pre-leasing, portfolio it of terms online about total XX%. is the the and looks XX%

is So, have hybrid Any that shows isn't person room delta of potential would that of, you function imply Is or in why Why de-densifying? no like for pushing that higher? is the the a on XX%. bigger? color that said, to about have not more

Bill Bayless

at it's so you the small. four in properties again, same-store And look only one that It's when thing assets. the of is No. that category, grouping

kept correlation over where were is and pandemic. the -- point regardless two you And out, the so, consumer of between kids parents their draw to sentiment we their have saying this were it's this university differences be and coming. that online, whether and are is hearing care we would Is going the camp. of in universities a XX-XX terms it’s be be We back They're going that the we feeling it's the meaning to don't well, college curriculum numbers. to going is portfolio to those my delivery, not was what thing And deliver. We what say, other what how again, whether students to the going can throughout hybrid. whether like person, it's certainly on going

is as those what And went that. that great hypothesis so -- show those We differentiation in categories there that previously into us and breakdowns, everything three think the which and -- those we don't see and by cautiously velocity, look sentiment at hearing traffic, were any see leasing, no out we consumer numbers look we at as trending I we makes through us re-lets. playing making gives and from were for

Neil Malkin

Okay, me. last then great. And one for

if there's you see of you'll near is terms believe don't partnerships least about I to that increase or having before, in this know to maybe capital there in you from In development, the guys given but activity equity at an or the balance ACE the private talked that the over -- just term, ACE even RFPs RFPs potential percentage a do COVID. of preserve RFPs impact on want full financial chance sheets

Bill Bayless

talk the modernization. increased And that to of about there's certainly, believe and going level we especially Yeah. be when potential we highest the activity, at

of we evaluation forward sentiment, of the in being the case closely We to this of equity most American willing -- financial relates that And where Campus terms to very continue sense to every prudent it as and going what ACE thing administration we're first structure make is other to them. looking campus. to our of on don't understand the stringent universities, in be to all consumers university. we're going we're The invest in invest models as at Equity, our and consumer capital

Bilerman question as the how we're positioned. Mr. earlier about Just asked

where money, ACE, move discriminating it's to on criteria forward that plan we or As even investment invest the growth on our to have we want off-campus. of our we in whether always implementation related

develop want that universities do candidates to going And of the be to our housing, not we deals. you at may so some those but look which forward when for equity, want

equity we willing developer with We of us to continue to step have And source that some in evaluated. look the XXX(c)X then invest that's going a third-party be forward. for transactions the for project-based will as may institutions model also those in

are that out, working something is thing I'll with team universities. Wilhelm and that other The Jamie this and point his

at to making no was do how having as themselves to made with behind We structure we that made their talked was refunds. that a be there now and someone the partner a stability balance our and real Moody's the balance sheet that XXX(c)X on-campus deal where, supposed long-term where perhaps structures the found that offer best we for to credit campus. of ACE in well, share it. the partner decisions, in and their behind support contribute universities toward decision one of a and as and And related pain step-up project-based a and that contribution. situation what universities participation those have universities S&P, the that now COVID. look if you and As to make an off step-up them comfort those what deals about them model on doesn't support, and maybe look sheet Earlier with at eat investment is that those decisions $XX to with had they At those million perform any

activity. in that be going-forward that We more there's and may certainly this financing to to evolution. impacts of principle, learning we think how an terms uptick have going is think And we business. so, do desired I again COVID some across what come equity-based and are And the structures PX it in those are beneficial. And have things transactions that may that going our think from

and Now other of crisis do did. universities this. this American took to did. Campus Not have to. We've mentioned, And we say I stores when they step-up step-up but that equity contribute, didn't equity heard asked we from that partners me even didn't all the let as were throughout approach partners other

I in has goodwill which competitive manner probably given have think so, greater long-term as advantage that us our the over education, the partner, we that higher only peers. behaved among we a And a

Neil Malkin

Our Skidmore from ahead. Instructions] Appreciate Thank you. Operator: that. come next go [Operator will question [ph]. Rick Please

Unidentified Analyst

Bill. Hey, Good morning.

reduced do how look remaining versus of using fall the think rent occupancy any occupancy? trade-off you rate? are And as or Just about rent at to drive and lease-up, traffic concessions you you Thanks. the

Bill Bayless

time, this we're trying to you At -- point always always Yeah. in revenue. maximize have

of Based certainly, at and we would time and sign where what going shows relets how rent period end the that out. rate that. is vacant mentioned but rate beds I we're on may average that the that you so, for is through also based materialize rental of no where rent variation increase, great in X.X% And there's upon trade roll-out and up. And that the rolling of this that currently and maybe leases potential remaining occupancy a ultimately

so relates of many vacant the look beds price how that vacant as point. many that how portfolio and of those today, are we as below to point beds it And beds are our at vacant price those above and

Unidentified Analyst

front Drive number that of me, Crown. in

Bill Bayless

Let me shows relets. and first speak to no

same-store at shows XXX bring no I'm up fall above that out sorry number are XXX and that points On the or XXX no that they XXX if price bring below. the of number that shows, down,

As are same-store and above it sorry of are our yes below. above them priced XXX priced I'm relates to XXXX of XXXX, relets number

getting it's this terms of to it in at in time average is point of components a the we in time. no but wouldn't terms the certainly that sausage the terms basis lease-up conclusions and typically place than so really But expectation final impacts this a conclusion this our draw at market in the is the of With percentage and really, how XX% clear see this into made in administration come more time. how rate of of at our draw rental that perspective have definitive of no in hard shows and that And But let terms in equation. variation relets full remainder so industry from a into real year of rent. normal point final anything we the anything

Unidentified Analyst

Thank you.

Operator

ahead. Please go with Nick Citi. Joseph will question from come next Our

Michael Bilerman

Bilerman. Michael one Has follow-up. It's quick

the joint back go is the you're be the joint to venture markets, set acquisition up. on a at able looking that transaction before venture get you hard On to would into

hear for contribution have capital? or eventual sure and are would do the how a the venture, that that to not So to the going make assets you you you

Bill Bayless

that Yes. joint do we be portion We preserve would where XX-X And diligently preserve do our is that not thinking Michael. we're our capital going again, about would asset and we're will to XX-XX, equity. can and and a absolutely our an venture we anything contribute

we're lever So try our so. to risk having do then to going and stuff to to sheet and have transaction not up out balance tie go on associated with up

Michael Bilerman

expect potential of terms should deployment? And where that raising capital? are third-party in you in process that we When

Bill Bayless

Yes.

We in the have we'll the process be interest the package of time update so commenced next the parties in and process process. part process. fully not I and place front you the of playing and call is expect we we the We'll procuring are are in just through of out that next the on to have we to as by talk. would an where give

time. update you process we'll again, on So in point the at that

Michael Bilerman

are at partners, actual And it is that joint theoretical more these or in to prospective are venture you presenting just market opportunities point? today the this

Bill Bayless

is It theoretical.

coming track overview prudent you is and of it maybe This we Campus an pursue. want record. American opportunities in we forth of place to to Here's is type when that think our have know the partners

Michael Bilerman

Thanks. time. the Appreciate right. All

Bill Bayless

Michael. Thank you,

Operator

question-and-answer session. for conference Bill to Bayless This would I the back remarks. concludes our to turn over closing any like

Bill Bayless

all to of classes to the with uncertainty until universities again And we're opportunities in update a It you must dignity We our you to no us. all are us. must do as before with recent worthy certainly and itself. we than and of make family. all in And you every We full for in and to currently come injustice pleased stand safety, And commitment supporting very are derive progress COVID thank who related students sparked The consider against our insight and statement for that other period our we're change. that outrage, acknowledge less And protection the have one to difference. to that We'd in pause of less up move their commenced death risk joining facilitate the give and truly the each reason that call to the some the sadness renewed have close the tragic this of individual. belief black this issued we lives statement to country is will it's anti-racism. life of that deep that others. the uncertainty to for Floyd be and we'll like for the and we'll and examples actions is take and we've to future. is unacceptable. to reading racism grief, speaking George any to like that up this intense this part by I'd valuable responsibility community have ACC real care, and internal And Dear black external speed pain with. that is to of a the a commitment keep This our we there and world and our citizens people continue in from pain.

individual. answers that today, sense While we we every compassion we our to of humanity use must don't a acknowledges the heartfelt our and cultivate world all know respects collective and have

by discrimination. Our our our engage to direct change. for and and and drive real are staff difficult understanding the to take in student strengthened we that and communities place to up and have speak must real company racism achieve residents our and defined tolerance and conversations to continue We'll zero and diversity and inclusion encourage

and inclusion to We'll we to learn further help each With our continue university of forward to discrimination without a of we'll our help and drive evolution you change. listen with the and in this this and roles communities for values on engage next Together to equality. embrace look that diversity play broader student world thing actively update. stand that we and will We leading to communities and right speaking cost. will the participate our provide core hate. do each us to serve toward resources to drive prejudice We'll

Operator

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

disconnect. now may You

American Campus Communities (ACC) 21 Jul 202020 Q2 Earnings call transcript