American Campus Community's FFOM Explodes 55% Year-Over-Year

AUSTIN-American Campus Communities Inc., which develops, owns and manages student housing properties throughout the United States, released its Q4 and year-end results from 2012. The main highlights included an increase in quarterly FFOM of 55.6% to $57.1 million ($0.56 per fully diluted share) compared to the $36.7 million (or $0.50 per fully diluted share during Q4 of 2011.

Other highlights quarter to quarter included:

• An NOI increase of 2.5% over Q4 2011.
• A same-store wholly owned occupancy of 97.4% (as of Dec. 31, 2012).
• Awarding of a second phase American Campus Equity (ACE) development at Drexel University with an estimated total development cost of $168 million. The 1,316-bed community is scheduled to open for occupancy in Fall 2015.
• Awarding of a faculty and staff housing project by Princeton University with an ACE transaction structure. The 326-unit community, Merwick Stanworth Housing, will be delivered in two phases. Phase one is targeting a Summer 2014 completion and phase two is expected to be complete in Summer 2015.

Full year highlights included:

• An increase of full year FFOM 28.8 percent to $165 million or $1.91 per fully diluted share compared to $128.1 million or $1.81 per fully diluted share for the full year 2011. Excluding $9.7 million of acquisition expenses, full year FFOM would have been $174.7 million or $2.02 per fully diluted share.
• An increase of same store wholly owned NOI by 3.4 percent over the year ended Dec. 31, 2011.
• The acquisition of 40 off-campus properties totaling $1.8 billion containing 23,441 beds with an average distance to campus of less than one mile.
• The completion of construction, and opening of, 11 owned developments totaling $381.4 million containing 6,703 beds.
• Disposition of three assets totalling $54.1 million containing 1,584 beds with an average age of 15.5 years and average distance to campus of 1.8 miles.
• Completion and delivery of four third-party development projects totaling 2,236 beds at Illinois State University, Northern Illinois University, University of Wyoming and a dining hall at Arizona State University.
• Commencing/contiuing construction on eight owned-development projects totaling approximately $415.3 million and containing 5,258 beds to be delivered in 2013 and 2014 with average distance to campus of 0.1 miles.
• A capital raise of approximately $1.3 billion in net proceeds from two follow-on equity offerings, which allowed the company to maintain a strong balance sheet with attractive credit ratios during a high-growth year. The offerings included the issuance of 299 million shares of common stock at a weighted average issue price of $44.04 per share.