ACC - Earnings call transcript Q4 2021 | American Campus Communities Inc

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Operator

00:09 Good day and welcome to the American Campus Communities Q4 2021 Earnings Call. My name is Breaker and I'll be today's event specialist. [Operator Instructions] 00:25 I would like to hand the call over to Ryan to begin.

Ryan Dennison

00:35 Thank you. Good morning and thank you for joining the American Campus Communities Full year 2021 and Fourth Quarter Conference Call. furnished possible X-K audience. was to provide release widest the press on to Form access The measures Reg In the to GAAP non-GAAP release, financial accordance the the measures those company directly requirements. G has reconciled in with comparable in supplemental XX:XX section Investor financial materials which package. you company press the earnings Relations includes an the both Also find release the posted package, on website will and a

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

forward-looking on analyst filings. Winger, made Management reflected certain subject by supplemental webcast X:XX The XX:XX be like are facilitate the you XXXX, the Our forward-looking and package the believes expectations statements in and risks press differ will presentation to be results that are Executive they of are the this its comments fact the undertakes provide not management from inform during of for the be and forward-looking Chief by SEC. Officer; would company will William today. detailed in periodic following or no release, Daniel Bayless, of obligation any in the the time-to-time Operating Act Section slides Exchange our our Reform along. the can Officer, within President Private actual in Having Counsel; to supplemental XX:XX with materially and With company Securities the making one press members financial Securities and our assumptions, of release Litigation expectations XXE of The SEC or Chief company disclosure statement that Officer; to cause Officer; of and forward-looking based could Webcast Jamie actual call statements He's same. statements his results the economic Talbot, of Bill? the may Wilhelm, the Although filings risks after uncertainties. and call reasonable Voss, and Private are in opening remarks. to achieved Accounting and this I'll assurance to Section vary. may that date referenced expectations the may today Kim EVP no XXXX joined Financial circumstances statements Management Act said following the amended reflect turn of by you historical Chief that, meaning Bill the as XXXX. Chief General Securities from Act call: XXA in to the Bill which Brian will Perry, Beese, Partnerships. update be conference be Public company's as events providing any release. that, deemed advise XX:XX are over advanced to Chief package and Factors opening Investment Jennifer of Officer; for senior in and

Bill Bayless

signed team company in as operating rental nearly delivered XX.X% of X.X% fronts. We employing expectations average our Ryan. rate our Thank the end We growth. X,XXX opening of beds our history, and you, at year and was outperformed high and systems. fall ACC next-gen our our XX:XX occupancy prior than executed The for operational the financial achieving supply results. shortage Program, and thank bringing schedule widespread us for development morning X,XXX. within also full chain the and XXXX beds an serving Disney at XX:XX and more the despite the XXXX national Disney year of than for discuss College delivered we our labor total on constraints, to budget, leasing, joining our you and all QX outstanding and shareholders. capabilities advanced strategy on period many our any more and We successfully enhanced long-term leases term summer spring Good

to stabilized the hit company's and expect We yield With to in current XXXX. XX:XX in to expectations. originally our achieve eclipsed regard portfolio, beginning X.X% performance XXXX targeted our yields

activities including pre-pandemic fourth returning expected. and prudent positioning our and in proceeds off-campus XX% the levels, value escalated provides earnings ability to valued University on regard infrastructure additional capital the housing in grouping eight interest solid social year existing expenses successfully reflect NOI on our yield produced during capitalize to our recent both that throughout and on-campus exemplifies of capital with ground us to most product comparable via investments full of well-timed structured Our almost cap ACE Arizona Street's exceeded transaction demonstrates property, portfolio levels, rental is X.XX% development for provided rate creation university bond X.XX% XXXX the our market addition assets our the capital With pipeline a be simultaneously notes full of portfolio. transaction economic earnings earlier attributes. mitigates we our student enhancing unsecured private beneficial value in can two-phase of execute our operating per cap formed The our further moving occurred par to revenue, The ACE transaction allocation our per seven-year illustrating property to we the rent $X.XX. share a future share portfolio's execution surpassed a share also quarter, by joint year trailing discovery $X.XX IRR off, and of unlevered property XX%. partnerships spirit our satisfies executed pipeline. on represented total allocation a our partnerships, while on XX% which on $X.XX XX:XX our and year on also issuing also high that historic the or cumulatively both than the In pre-pandemic XXXX, to maintaining XXXX a transactions. resulted XX:XX at Harrison our it into The as in activities, end platform by year recapitalize FFOM of ACE with State and asset and developed $XXX guidance million an expectations senior opportunity NOI campus quarterly place solution, properly same-store assets needs XX:XX price a campus of average approximately offering per of portfolio based closing operational to and exceeding the venture public-private transaction capital It for net Importantly, existing expenditures.

In provides fundamentals first a high student addition, education. UC we ones experience the headlines, of targets levels we in X.X% public-private Americas strong post our stock X.X% we enrollment COVID in transactions As the media to leader, ended the Tier growth a traditional leasing release, Irvine, university to is and X guidance pre-pandemic ACC highest growth statements capitalize on-campus our XX:XX the at the targeting XX:XX greater XX tracking year with demand to and Since 'XX well been the with sector serve with commenced contrast attractive has in year at on normalized decade the universe have to for an fruition. in higher years. stark same-store of levels optimism development regard strong Research broadest a out fall college enrollment. are demographics awarded on wide remains to business projects, growth look year for more coming enrollment universities, with supply of set levels the were decreasing a lowest XX:XX manner environment expanding of do currently our recognized over quarter Princeton, third-party be XX:XX pointing of Touching to highly of QX, may our velocity development and revenue Student over The our and continues of of we attend and pre-leasing with for demand business, is uniquely and end industry institutions positioned consistent enrollment our current the opportunities flagship MIT, that and a be being in This Purdue rental all-time the As growth occupancy to this academic In to sectors $XX.XX. XXXX. fourth includes appear prior momentum to four given opportunity. at Drexel record forward, including our partnership for the XXXX-XXXX briefly University closing commented the on-campus As rent environment. Foundation. supply new to levels the attractive coupled we fall experiencing. a the new Jennifer continues,

the is As momentum our our we earnings per with range million moved XXXX, the of guidance, This into includes the guidance $XXX represents which considering cylinders represented the phase that company from the accelerating by XXXX like was of firing In of its XX% XX%. on fact impressive earnings transaction ASU the effect an is is in is when growth all the to company first even more of to our exceeded XXXX share of of off and closing year XX:XX and that that for coming I'd this call. this closing, for my shareholders. outstanding the reiterate high remarks end growth expectations. XXXX the beginning

turn of the turn our that, industry we on back strategy. focus to the XXXX question-and-answer be strong to land of questions we fundamentals disclosures As will and our the company, the regarding not instead, With recent we'll Q&A. to call, any buildings, today's operator our and the it answering but XX:XX I'll portion regarding business performance outlook, begin

Operator

question Goldfarb lines you. now Sandler. Alexander, first of [Operator Alexander We phone Instructions] Piper Thank the ahead. from go our XX:XX have on please

Alexander Goldfarb

maybe on Bill, there. Yeah. first down morning Good Hey. XX:XX just focusing margins.

by said of about that some to basis XXXX had guys you was margins XXX think points. I'm up from that that improved XXXX, given you in COVID. guessing I

you you finally corporately and there you on how are big degradation exceed? Two, that on do, efficiencies? you did -- not XXX-point much that top one, could that guys COVID? the portfolio margin the margin any trades to that, used that end doing with also that given like of you're doing think suffer up? to So all external you you'll think less you And will layered savings the are return portfolio be Do that where do

Bill Bayless

to COVID appropriately and due to of year we've significant will pointed our points bps from improve when a Yeah, about it last implies investors And 'XX margin. XX.X, dipped so drove just And, at XX improvement gotten that And in XXX and We a off to for our recall, the a Alex. have XX.X. margin basis XXXX. on. a XX.X course, that's the down to that what we you of of of look guidance initiative had diminishment we as is our XXXX where in get out that of in an XX:XX a up did starting to Dan From or XXXX bit expectation until question XX.X. we in full XXXX, to it little you will only through certainly I'll improvement talk XX:XX to to Pete let be the little we we surpass that trending and into achieved so talk 'XX, more developed XXXX excellent forward. we to margin about XXXX. lease with going margin up and a improve improvement fall your had And months regard won't expect (ph) follow-up benefit four of move

Daniel Perry

Yeah, XX:XX Alex.

really you in look to the a at G&A our experience are guidance If on number, X% XXXX headline terms guided G&A. looking of to X% decrease about we

in course call what does related XXXX, to land the Hopke's also buildings. of we charges business of that include unvested as work and activism granted and some would incurred specifically vesting the of with in the and Now costs retirement we part ordinary not his shares Jim

do with see If slowdown recently. studies, year growth and so we exclude But seeing XXXX where increasing the lot X% to focus studies only Board. G&A here those, you we a that incurred are. benchmarking we've are also some by we're G&A We of in still productivity that we on every a in certainly

relative very of you our of revenues, other relative consider to percent when that. a then REITs with I size at specifically our well you company of productivity And think all assets, to in ratio where statistics those our sits regard terms a If as REITs. percent G&A ranked of as and look we the of to

Alexander Goldfarb

XX:XX second coming then the in fee development question bigger is, think the Okay. year. And guidance, this it's I on

I think, normal of schools of Bill you referenced scheme third-party the development. getting into back a number

any And third-party going in return. to only is the again that fee that is for a on ACE. two some then back 'XX the parter, sort one, for or one color level started if those you're us timer, two, guess down little or of were a development to potential meaning 'XX, it's guiding go of if I normal those So give 'XX, considerations in upside were the a

now rate it what the trying I'm run these 'XX back see that's 'XX out, doing to figure would them, but and actually were normal many or of be? should how projects down go are what So up you pent our for in schools third-party in

Bill Bayless

Sure. XX:XX

third-party utilized been the that ACE on. believe you trend you've Graduate four residents, Graduate a Housing been price student interest look commencing have UC in the been you Irvine, we cost that's housing of MIT forcing both lost levels. particular this talk years year that is at since development products talked price-sensitive look Drexel of XXXX. have at is and always look of for having upper in hope prior to look first both revenue First the third-party Typically, that and we always graduate on four is want When the think will Princeton made we UC be and XX:XX long-term are. and then of we we and and about the let's also Drexel, And previously the support housing. able we dad, transactions a look Atlanta, above to will in clients we the And we more come universities client And UT in aspect positive a happening, the has of begin been to has used to seeing look Irvine at market. the they've on division mom which housing those Princeton little those be on which award you mechanism, third-party more build part a And moving increase been conscious. what forward and always and at they at the those that at which are a transactions. metropolitan to institutions protocol provide that MIT Austin, about Boston, all in and most announcements we're And third-party -- at transactions, housing financing are Emory, as then America a profile is to solutions. Housing has are those vested

capital pretty the to case, terms capital in they enable cost project and UT, is there those base the do you the use on of can wanted for AA of all Princeton, MIT the university so And particular good to cost can rents are that too. the float transactions, bonds lowest lower and/or at enhancement is And credit XX:XX in has of available. get always a that much graduates. AAA in so differentiation that

be was we do so pre-COVID more coming those tend see third-party. graduate trend And a the and of expectation projects beyond to what

you year, an the be create as bar, see to this And new escalation to that trend to it as post relates so go. what stable a continues becomes but we that has we hope will that proven out

Alexander Goldfarb

XX:XX Thank you.

Operator

XX:XX Sir, from Thank you. have next question Capital ready. you're We now go Neil Malkin please from Neil, when the One. ahead

Neil Malkin

XX:XX great guide, quarter, Thank done. Great well everyone. Hello, you.

of you to First subsequent some start at one, fourth the in your of quarter full XX. called at had you and sort XX.X out occupancy, obviously were success year you

sort to maybe future platform I and to some fourth with techniques, So apply lease-ups your just those in was you can especially you are next-gen of occupancy? that Alex's apply achieve keep that things you and of wondering sort And alive. highs that new did One, to quarters get two-parter occupancies? then can what the -- of operating

Bill Bayless

two the and the the properties business years level the the the was thought -- the the with term, of of part up, backfilling spring development you fall, and with period direct may XX:XX originally that your lease who up relate year you was the part for am sorry, Neil. occupancy by backfilling a was And blip, of seeing improvement outperformance fall backfilling the Yeah, next-gen shift saw year year, those throughout ending but and go next-gen. one you of intense -- that history that historically, things rate XX% up from intelligence terms of focused a having was second May we we've to of last ball the COVID on in that so same improve we've This originally XX%. about now of Last success XX:XX now of lease-ups. a just from December in that just lease of story I support first bit seen Lance that into next system And the two incremental of year running been terms a spring now is a driving little a the went next-gen. of our economic long we XX% XX% years And occupancy the a very answered paradigm And be that solely fall to result annual gen bringing of of leasing, follow was backfill. -- maintaining corporate current question each May leases interim to of are leases.

We we bps. have had to then level And of see through about by XX seen spring also you've no to if go haven't improved that again. -- we shows success

about the really the $X talking next-gen gen's you to so come and been G&A titled that us now for about systems over incremental significant million that starting several benefits talking and regard. revenue in of in intensity system in G&A been there bit some And a you're little the to next that look But see has about also of lot investment Daniel, bear. through of that has of enhancement which the years last DP value of create

Neil Malkin

that's XX:XX you, Bill. great. Thank No,

anything talk you maybe XX% to [indiscernible] sort expect that anything interest, -- mind or about if you at X sort does and changed initiatives, of was Power that very other asset in investments maybe announce just is talk of that's pricing take was that like you want skill XXXX? sort XX% obviously of about could fund partner advantage five grow sort that to fund how that fact something we're you Tier at and a the your and set like talked line schools one The I growth you your -- if about successful if of in of the the from to be trended, in the of and schools the wondering will has also you and aggressive. in structure

Bill Bayless

full forward certainly And Yeah. initiative moved we at speed. XX:XX has -- that

We have some final see come the currently partners -- selected activity starting regard. in to acquisition now to of market. the that We're we're

underwrite that are announce we related have we And venture, to would to expect particular beginning when about. we updates actively any to so to transactions talk real And again. transactions

Neil Malkin

and March I for event you Orlando Okay. time Flamingo XX? XX:XX Well, on seeing to thanks listen, look forward in in Crossing the our

Bill Bayless

forward We you to there. hosting XX:XX look

Operator

now We Sir, Joseph from a have open. Nick XX:XX line your question Citigroup. of is Nick,

Michael Bilerman

actually XX:XX was plan the Michael stock little going It's can NAV close that underwrite just that in that if go is Hey. assets. what management from about you how starting to versus talked do your Street today doing you transactions capital? you you selling about with with gap off Bilerman had pulled and to wondering to how board the really and Bill, thinking discount using initiatives do I go to here I that? to out again, obviously on get you Nick. and is transaction Harrison are the the have high, capacity towards what the a significant guess, through into deploy guess you -- added year to and I do now

Bill Bayless

you gap. that I execution is course me perfectly. close And and night last that, the Michael, and certainly, of I right is up quote strong action think the best business And said and Yeah. it you your would valuation XX:XX let say to

in the moving much very stock were of to of momentum at year NAV. very we saw in you terms close of terms next pleased acceleration the certainly, end So the

actually at we're the premium December. at X.X% of to end current a NAV your I think

that. XX%, the announcement the own the created and on joint we them. and Index today will that make had structure on are development and with performance on up Obviously, broader with about committee intimately handled so and there And getting that we U.S. industry certainly how Certainly the saw year pipeline whether the investors our that allocation to itself, momentum geopolitical in pick term would stock environment, of in acceleration is to has that's an have from in allocation the we processes. decision star those we momentary XX:XX or certainly geopolitical context Obviously, of the a correcting an of impact at the fundamentals, venture involved accretive down environment we we and disconnect. the and the in have expect the move in reviews REIT market long expect pending end resolved be capital capital that it's see individual the the in concert and the every last perspective, with the

Michael Bilerman

cost XX:XX and funding two think executing the mark place in or that guess, it interested Street to now that down how capital additional joint those ventures, you path accelerating on, the say development you discount provide buying for to and strong years do to narrow the liquidities Harrison I just and would back obviously capacity I shareholders? so provided all gave guess you the are to it at assets, about stock not -- but continue very or of all only provide I your on also your financials -- on-campus help sales secured goals. continue asset redevelopment,

Bill Bayless

have think, consistently several at been the the I they starting allocation last last question. heard share prudent Yeah, several very toward have months, your thoughts self-funding, from of earnings in been years. the levels that of are that taking impact over that shareholders waiting plan levels appreciative but The have one thing per profile terms accretively on the growth end we for XX:XX capital -- with we don't negatively the our of they that

first the the the that undertake longer that transaction comment were well we a The we've we related ASU notations a it. about balancing do very that to that that want couple point that we foremost able relates comment on of bit eight really are to to on-campus it do and have, your XX:XX the ASU the price in we to discovery so and term. exemplify I transaction pleased to assets it very and as transaction ability think feel the gave priced off-campus, demonstrate. us little And though as to opportunity diversity on our that with script, that I my did there is other to be those centers. a academic and two living upper ASU assets. in XXXX made great is renovation. important par the learning was off-campus in building is a products a well-structured eight thing on campus pointed There among apartment they high-rise redevelopment very class immersed The can on a apartments. is was demonstrates village. equity there There fully There There XX:XX is which private out, complex two Greek and been I

it the achieved range And be throughout entire to demonstrated point product they're price that so par. of student really housing going on

we your a point good to again this about our undertake, in it on took or much at XX:XX that more So discovery a that. in think growth is time there's accretively of As how relates our profile. self-funding focus and maintaining place would lot that question of we earnings

Michael Bilerman

XX:XX Okay.

being season, for the a the on-campus imposed and the for up capture So, a stays properties today. able not growth inflation elevated on-campus rent in capture for exist And in your are sure to is maybe -- obviously certainly I the ability that talk rent off-campus just roll about restraint student may that own. into as to And 'XX, want that 'XX excess topic, the your multifamily practice so in keep ability if capturing partner the assets. you off-campus be rent there wasn't that your landlords you a to can to difference versus good growth housing second -- if and growth schools you higher on-camp

Bill Bayless

at Yeah. investment have and rents overall start certainly the on but like through Michael, a flat certainly is now Excellent of which about of relatively the growth the implied and it Student as talked by the we're one guidance. even multifamily and you thing differences in. the that look classification inflationary that is out XX:XX growth, of differences, we'd always is in whole when couple to the for we're context highest this product the COVID, then in staying COVID years a geographic section course, rate point you question, I'd impact rate environment and rate seeing whole, X.X% general housing, at had you residential saw and as COVID's level was growth explosive we've thesis growth. in X% we during and

of thesis that talk the stream consistency, great also the so multifamily months. stability are which the the is recession. student of continues you And in locked in of XX rates without sold about, cash volatility flows for the you your question, the be through -- XX:XX to same downside housing you’re of see we As the the revenue that inflation

to any the we in things in the choose ASU, protect how terms same one able And to concerned pricing We're no to also look real margin. market three on some so In of inflationary limitations. see margin we're every where that forward back on do And the the next to equal And six where like the out did. those so other apartments of to and we our transactions, expenses look at to XX-month we raise rights protection market, increases. the you the slowly budgets a sector, however, do, extent We in can that to this month. month and in always based callers X% excessive XX:XX rents case a why rates in all is are raise. institutions they and off-campus months, those month pricing And you as economic is much open the to as of growth, able not there about price reset margin and inflationary trade protect even they there a one estate. you as ground have on have roll environments. of on ASU can have the pointed you at abilities the and in all And it have price for leases, we of pricing saw we were rents the on-campus, of to on-campus

flexibility And but do so in how on-campus assessing how have market ability with will market if consistent them call, the by comes we would the be implement in will it so, we the how to into we structure off-campus. deals to actuality, we treat that do

Michael Bilerman

And times, seem as would cap your a cap rate you mentioned the other market it had asset other end there put that could Just to on you higher real XX:XX value of that in a at think industry a $XX, company of couple obviously pieces would of that the probably joint on is you just NAV Street certainly about is. different going things of be lot where the detailed all and management NAV mid-fours attractive sort to sort venture than overall is the entity. rate about bit and redevelopment, little out more to fees, I look are your that the things put out the into a plan platform, at is assets, guess, others. development of what of you of take your existing where I NAV value when you the you put detail see plans ventures, a of in account sort any your the is believe guess the the embedded very enterprise?

Bill Bayless

context point would the a And expect that is always in value we're always and where at of not be would through that something looking again, to that's where were versus context market to the a we internally. stock in the public at in We're process what NAV, the out the would is And we trading. as reflected disclosure, but time. we in of the NAV trending. I Obviously the company certainly Board XX.XX looking have today. think we're go about at look we of to at NAV future at the XX:XX moment level in decision impacted we Obviously, something NAV again,

Michael Bilerman

to opportunities not. whether some a we conference various a Street are or to of granularity is provide accurate there maybe investors as bit weeks as Well, couple little get the our more in to XX:XX values

it. appreciate I So Thank you.

Bill Bayless

you, Michael. XX:XX Thank

Operator

XX:XX Thank line on now you, another from Michael. with have We Markets. question Capital the Austin KeyBanc Wurschmidt

Austin, So, ahead ready. please when go you're

Austin Wurschmidt

XX:XX everyone. morning, Great. Good

just then rate you in to kind or how just elevated halls you around sort set levels us you sustained which you've varying the relative you components, into that rental revenue how occupancy of think up? guidance of XX%, backing last guys residents give those components levels some about assume of mid-kind and historically? As fall And first-year kind occupancy than been the the back? particular curious that the you a at drew of, fall growth were of where reverted think of can maybe So and elevated XXXX X% if range, did at I

Bill Bayless

operated the to in capacity be near basis and consistent. And first we the as Sure. on-campus relates COVID we the of to was back believe recovery by that first-year was it going always pricing campus. you saw it largely we on XX:XX universities those came students increase recovery in that so full that have serve forward. rate rental And saw with there maintain driven remains halls will consistent year the year ACE, occupancy the residents Most as unaffected and this really students in and and

at As -- on it what on again, market as there our type you rent in the normalcy. So in levels by off-campus been all has by and stability of on -- and now driven unit each expect XX:XX to pre-COVID occupancy unit to is in it you as saw property year property, market -- the rate relates returns say, continue terms we to campus to case market this by a the always of we and maximization -- type, that systems.

drive remarks are so level to are activities press and for that the rates the to cycle the by its -- looking all drive commented are that see all we they normal events, do attending the to and release on large us in do And to housing. able reverted to much all that on-campus as the systems has the having velocity. is can off-campus are they back Part we they're extra-curricular normal that gives fact our are when thing sporting national now so that properties see see being vary And they classes we that driven to they of the inflationary the those year have in to are cycle, back the rents several X% leasing first off-campus campus, utilize that of to and pre-COVID X%. we to trend return you the also ability we Jennifer as markets of -- one in her that market maximum from we're the XX:XX with always

implies think guidance about so can you of I increase. at that midpoint see And rental our revenue the X.X%

healthy regard. it in year that expect be would a to we so And

Austin Wurschmidt

thought to that how And said over think the portfolio quarter internal rate you're last just you XX:XX or been you you any if range. on transaction Got based It's you -- it. terms NAV, helpful. guys there's applied I'm to the price transaction switch the And low what ASU the cap about XX to wanted I when the movement provided discovery high XXs, you in year, curious last late then seeing. of completed in

good internal range think I provided or in Any to locations. in that of off-campus you that with this you change kind sort estimate quarter? line last that high trading qualities said of

Bill Bayless

Yeah. XX:XX

you that assets off-campus always par we that believed have on Austin, As we trade always and spoken ACC should know, in vein. believe with

discovery you say did was we that, never all that, ASU. community that so ACC transact. premise to did because the our demonstrate structuring demonstrated how real how we that of investment you only that structure the transactions, the with trade we these Well, ago said broader price when estate. on give the so lose lose And the that you is would years you to way Remember

institution, And Carnegie is so that proving XX:XX Now that for you when be five a you always XXX value U.S. ASU, us at institution the believe look it Power a also at we that was happens and rate existed. look RX cap up

on-campus It reports is America. number innovative World is and integrated the one in programs. metropolitan most into area. News And in university fully their it

trans to does translate asset portfolio. not in of cap And nor that every not rate -- does that obviously ACC, our so

the breaking valuation X certainly then looked aren't rural it, to best as have have once how are And more assets than you have off-campus and we emulate assets that down that ASU, look also we components towns other. college at certainly trophy RX, move that the have of our we we've your -- you NAV you Carnegie so products always the internally of when that at but then at look Power at like in well some located institutions,

attributes believed is firmed asset will that product is through that us, of you diversification tell asset. the we there in so ACC. what for by go those great terms the up of I ASU And And we always transaction have value a

Austin Wurschmidt

the mean, attractive relative available And think to venture XX:XX just an we owned those from Got of I it. of large one sort with then capital, the vehicles about means size and you should Allianz recycling portfolio? how to last two me, the joint vehicles wholly Harrison of Street seemingly

Daniel Perry

size this relative with Daniel. that venture capital Austin, there appetite annual in joint that about specific in more wouldn't talked we've but And at it I million year I'd recycling -- XX:XX more. is a say is say our terms partners $XXX certainly looking to a is both but million targeted, there range. that do to of that program $XXX

the appetite we've And program. and there but from so, with with, more of we're is them got look right an them, the base as limit to might and look but course, of even we the that But stuff XXXX doing or ASU I with that expand transaction. this now, size wouldn't we'll of more them annual say more partners do year look with on specific targeting we certainly addressed future, to we're to size a and

Austin Wurschmidt

Daniel. XX:XX Thanks, Understood.

Operator

Chandani Sir, you. ahead. Goldman have go now please from Thank XX:XX We Sachs. Luthra

Chandani Luthra

for XX:XX and Good Congratulations morning. Hi. taking quarter my question. you on thank a strong

development just look now on-campus appeal rents are to leg touch there to perhaps looking what think of of higher like? next off-campus into is the out a could development about room how that understand the environment to is evaluating you off-campus? inflationary of perhaps raise start given you in that's towards of we evaluating sort more off-campus trying XXXX, are the of leg how What I'm next -- versus latter beyond As the sort looking stages, Disney

Bill Bayless

XX:XX Yeah. a more pipeline off-campus. off-campus allocation ACE perspective have transactions. is communicated, on priority we from development it environment excellent in now our is competitive And and certainly some this still campus right previously certainly capital have as first transactions. of It's appropriate We

helping land is looking pricing table provide are have bringing when to the determined land the university course, pressures to have And vested in and bring as rents of be And benefit governance the is there its transactions, affordable you the we've on-campus XX:XX entity of accomplish value cost. always value to in certainly the education. estate so feasibility. of the criteria rents tax They are gives and, based They entitlement We and very not they so this control higher and looking real parcel. affordable which on of cost in They the more exemption they're construction also wanting cases at of and also, for in students you're that partner university. maximize that and -- scale said the tend by most many a effectively. larger, entitlement to cases process the environment, you meeting use their also given

type targeted current objectives. universities the when brings on-campus yields, development to to is rents doing achieve great the trophy in selective would that in environment development meet look type more There and be great some that transaction, the also so very as arena on we assets we than We're still able And recession, can only our ACE get ASU and saw were off being of through sites our reference we on legacy where and off-campus. campus great and you to rents provide opportunities affordable the return. benefit affordable student at accomplish equal

won't those, there'll situation a so there of be any. it's And fewer not but where be

Chandani Luthra

Got question, might call there. addressed XQ no kind appetite your the On evaluating see opportunity on that table? or something guys of be still by the that dispositions you are are gain were also Is pipeline be given XX:XX sort do how these think coming dispositions dispositions more In more that looking have outright the you outside it. there previous programs with of longer you still obviously, you you JV discussed. JVs, your feed -- from might Understood. to guys and

Bill Bayless

our now when longer lower in lower or say table end say profile we asset the be management assets there quality venture NOI of to of using of it's with no to can like is the get in wouldn't would replace joint assets the on joint growth of to minority that the fees lost monetizing we portfolio, that efficiency end I being we that be and terms longer any that of refinement idea portion certainly going and think really able XX:XX of the term in partner. fees of we but monetize it's of a right ventures appropriate we -- consider management off to towards times the scale interest

venture using So that structure ASU minority joint I did this Austin/Allianz and joint you venture. the think venture joint most we us with see will partnership commonly like Street Harrison

Chandani Luthra

much. XX:XX Great, so you thank

Operator

you. John, John Green Street. We question next from from go ahead. Thank the [Operator our please line Sir, now Pawlowski have XX:XX Instructions] on

John Pawlowski

the fetch XX% pick very William, want further a sold of portfolio, if of university much. you away Thanks to bottom campus? type second from the your that you think would tier rate, number figure cap XX:XX of little bottom do

Bill Bayless

investment a would in pretty significant wider you say attractive pretty seen still to think rate couple that our XX:XX compression than end because investment think consistent stuff, still Obviously, about seeing that compression core to trading a cap a deep a very fourth XX%, at the cap the a or investment the seem public quarter is that the in it, rate return there compared seeing but were bottom obviously, that X% premium what sub the that where the and across seeing but I mid that focused core probably the and for down compressed relative primarily or and higher of investor compression you're base seen rate sold at of student you've that what you're major that is of you've activity X%, assets but for we you it's housing trade of that's multifamily. significant and a lot range, universities range that sold Street if large the Harrison call portfolios you across I

John Pawlowski

Sure. XX:XX

and bottom the tier me give the a ASU why bottom own the portfolio XXX you source of if hold bottom as buy mean the price of decision, so versus versus discovery? the use irrespective mid-X, terms of I'd I at rather decision, ASU a not XX% at in of So portfolio

Bill Bayless

alternatives, And feel just it's look we that at people price forward, discovery but trade of ACE terms critical. rate. can what on we this in Well, cap we at for spoken you of what said asking equity in call obviously decade XX:XX you evaluating a over as and the have we go

was we it important very that so put that out. And felt to

The other point And we high probably there mean, partner thing Arizona concentration. there. I is, out is to State and they I do of more want a also to wonderful and love degree are we had

about excited at off things to single Morgan ability of the a risk the invest their the market that was ASU. of in is of One taking and more talked CFO Olsen, we diversifying table, about we some have the

And flows. there can our looking plan, and we transaction as cash the that we what John, capital a certainly so allocation trade looking entire we're that our go at most that is made lot were reasons long-term portfolio accretive strategic sustainable why make -- we're sense, at of also but enhances forward, every whenever

John Pawlowski

from the Okay. to back inflation question Thank you. for XX:XX Jennifer me, discussion. Final

X% a X% enrollment the up, X%, is inflation off-campus kind housing I recent down of portfolio implied rates history. and push understand guess, is portfolio, well X%, never you versus supply guidance? I So is the don't on rental student the I'd run can't above why baseline that's but in

Bill Bayless

eclectic flat And geographically XX:XX can the over you growth And you always Yeah, the that X%, have I X.X% But very maximization growth context growth range at cycle. in you every the revenue when all have we answered occupancy, the of we assets of had years to actually rental get certain negative that John, to the and X%, rate portfolio. previously to together, certain bring markets. X%. sometimes it's a average, that in about get X.X% within always a to we've diverse

we off-campus, long-term so think the versus And look is at when those that ACE also terms this you of another profile opportunities. thing of in about

in five have you coupon the where asset clipping downside. excess average of little the well X% take stability our times Callaway our on campus ability to to in very off-campus at IRRs X% prolific first House where was achieve growth can versus rate on the years You that X.X%

have cash prolific XX of the across type you when not rates but opportunity great so assets stability flows, of Speakers] [Multiple look the have portfolio at XXX And and of states off-campus to in XX setting markets. absolutely different that you different and growth,

John Pawlowski

again are certain across we're portfolio enrollment is guess I Yeah, across growth? seeing located, the Why up. portfolio supply the is X% well your portfolio is and follow-up down, -- at the XX:XX asset why rate

Bill Bayless

in diminution And in we is our what diverse market zero property of that you XX:XX rate with all negative and the not years of thesis a portfolio the has revenue in occurs growth cash and flows. dynamics large in that growth has the large is of product having of where some But were and have absolutely why me you're to. today, an significant of are off you. the within true, growth investment equates years rate story it this Again, come such one of we're people the always to supply a can't X% rate this housing consistency benefit probably of different supply they X% said, student are having again of you, that rental very XX diverse great individual the starting can't were as me saying the and row as they of the time. XXXX-XXXX a And is reminds as housing had stability not can recession rate a remind have rental the is apartments ours portfolio on rental why growth, just to X% types. basis, consistent different. has the asset If never conversations and a when -- that student asking question portfolio of thing

John Pawlowski

the Okay. you for Thank XX:XX time.

Bill Bayless

you. got it. You Thank XX:XX

Operator

have you, from line. your the you Neil, John. now line One. Capital We Thank Neil ahead. question follow-up from have XX:XX I please on Sir, go Malkin in from a a

Neil Malkin

XX:XX Yeah. Thanks.

Just two quick ones.

school I went and I'm just of and talked And not leads obviously next core to before, think know wondering the of are sorry of COVID not if about of you I term to my just ACE. to actual third-party that you business. do but and to shifting kind build When that of third-party. you their know is focus of but pipeline values near answered into of see after the land expect from we're about and kind William, off-campus the Disney, most increasing, do things this some kind sort announce First, pipeline going you question? you that ACE these things to -- said

William Talbot

both which talked as focus yeah, sure. on those little they're about of Yeah, earlier, XX:XX Bill is lot a type where party and but seen key third Grad the those in is that universities is ACE sheets lot third a no capital, the we have that lowest bit affordability to this very for projects goals And cost of to as universities there, housing, related equity, a relates PX usually but we've of specifically the of the that appetite balance and we change believe well through the finding overall is what different of party. and the deals

financing to pipeline. to vibrant their of targeting within supplemental, there's goals you number is And based look there if Northeastern what the on so Berkeley, could a is And the there is TBD that those project still within potential And and be our are be. a universities an ACE. Cal, that what that ACE

on announcements, be equity look you and ACE come you'll recent criteria continue and mix is as pipeline when and closings large along. includes head university, that investment is what come party third has the third-party hopefully large those and our product pursue ultimately the both pipeline about that fruition becomes and the of will depends to projects of So and at and win on a projects and out seeing still and and you're turns ACE that talking vibrant that been what with we've depends to it more ACE see been these and so

Neil Malkin

of right. growing assume is I RFPs, And quarter like Okay. It is that every XX:XX more? pipeline that terms seems in

William Talbot

Yes, continues strong. grow and it be XX:XX to

Neil Malkin

being is talk so is of the the less other XX:XX I value of questions you than of part multifamily, to this do. the very think lot the in And flows. Okay. is oligopoly a risk, obviously predictable one lower tying growth from then revitalization of to development few about right, the last it have skills external, people come that of With and growth people cash think together. on-campus And the the rent to kind going speak it's I

creation how over in that can thinking the we value several and mind, with look past long-term of you you allocation as COVID, talk are about maybe about years? So just next sort capital

Bill Bayless

was And want really put off. implement you Yeah. not are one -- up in accretive point to plan. to untold we I position our sorry, XX:XX we brought out my an the COVID, stories recovery investor of NAREIT. presentation mic are Certainly, that certainly at since in a from And the self-funding we

-- own XX:XX accretion campus we presentation, that to portfolio, where If appreciate you're sales did all points are that now best of of lot William company's lot the to period track the in long-term now of portfolio, -- you markets you portfolio, share, as that portfolio exception. actually what rare as of we pull that up of an exited being ASU strategy we the benefits seeing time, made Page competitive 'XX, to our presentation. asset the to basis And XX to in we a the a repositioned we with value our what are with we in seen prior been patient during really will pipeline it's the exited relates were all shareholders as you per we do we strong the have where with and our we we in earnings accretively, more our one reposition saw couple -- context the 'XX years that Also is that or that As pedestrian the we at the it the shareholders those being campus implementing reaped before enhance self-fund campus we long-term on us. of in occupancies with But markets, in to had asset we a we in position refine we NAREIT saw as grew and that this XXX in have up we cap XX% than to we in points continue five were in it markets but the And the is the mentioned, the were got at versus markets now were by they be the markets basis the that impacted XXX were exited and the over now PX bps we we've through net asset-by-asset the is we over also of on enrollment rates ever that years. bottom XX.X%. portfolio proven XX:XX markets, company by development have thing -- continue our aspects the exited to very last their history. we and are on we now COVID than probably, said, that have of sure you've But mid-Xs. XXX basis as ability now upside up, East about X that line

of future able advantage company to company. the very the that in and the accelerating for bright see we are are a and of opportunities momentum tailwinds before forward of we taking a And a lot lot so as move

Neil Malkin

Appreciate Thank XX:XX you. that.

Operator

you. Thank XX:XX

further have so We to I'd line, it to back the questions like Bill. on no hand

Bill Bayless

industry's want what night's I of XX:XX American saw the cumulative in or you team. hard thank the all to working you in I is us most collaboration thank effort of joining And the release to Communities for and want really team. today's Campus dedicated last

give of the attending level a time. twice, because this XX:XX conference, also COVID I get Citi so high to to be just me I've you for and -- Omicron had the And doctor out I has not a that to to them. shout to policy. able of vaccination attend their unfortunately upcoming those big want of won't want I at have vaccine and very I got told had antibodies my are

all And your going and so you all to will they attend. what's and will loved I good William there questions of Thank on. would be Daniel of give to so outlook you a much. have answer

Operator

you This does for call. conclude XX:XX Thank joining. today's you. Thank

You may now line. disconnect your

American Campus Communities (ACC) 23 Feb 222021 Q4 Earnings call transcript