AUSTIN-American Campus Communities Inc. released its Q2 2013 earnings report, which showed a drop in prelease and occupancy numbers, a well as a decline in net operating income. The numbers show same-store NOI declining by 1.3% year over year, while preleasing stood at 90.8%, down from the 91.8% reported during Q2 2012.
The earnings report also points out that the 100 basis point preleasing deficit narrowed 370 basis points from the 470 basis point deficit reported in the company’s Q1 earnings release.
But achieved occupancy for the same store wholly-owned portfolio stood at 91.6% as of June 30, 2013 versus 92.2% for the same date of the previous year.
According to Bill Bayless, American Campus Communities’ CEO, the REIT is projecting a fall 2013 same-store occupancy rate of 95.5% to 98.5% and rental rate growth of 1.1%. During fall 2012, occupancy stood at 96.8%.
Though ACC was highly active in acquisitions during 2012, Bayless says not to expect the same thing this year, as the REIT attempts to get its arms around its expanded portfolio.
“While we are in the midst of a vibrant acquisitions market, the timing of potential acquisitions is likely to occur later in the year, and when coupled with associated acquisition costs, we would not expect a meaningful contribution to earnings in 2013,” he says. Rather, he notes, the goal is to focus on long-term value creation for 2014.