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Section 1: 8-K (8-K)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934


Date of report (Date of earliest event reported): February 18, 2020

AMERICAN CAMPUS COMMUNITIES, INC.
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP LP
(Exact name of Registrant as specified in its Charter)
Maryland
001-32265
76-0753089
Maryland
333-181102-01
56-2473181
(State or other jurisdiction of
incorporation or organization)
(Commission file number)
(I.R.S. Employer
Identification Number)

12700 Hill Country Blvd., Suite T-200, Austin, Texas 78738
(Address of Principal Executive Offices)     (Zip Code)

Registrant’s telephone number, including area code: (512) 732-1000

Not applicable
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:                                                                                   
Title of each class
Trading symbol(s)
Name of each exchange on which registered
Common stock, par value $.01 per share
ACC
New York Stock Exchange




Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.




ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On February 18, 2020, American Campus Communities, Inc. (the “Company”) issued a press release (the “Earnings Release”) announcing, among other things, earnings for the quarter ended December 31, 2019. The text of the Earnings Release is included as Exhibit 99.1 to this Current Report.

The Earnings Release is furnished pursuant to Item 2.02 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

ITEM 7.01 REGULATION FD DISCLOSURE

On February 18, 2020, the Company disclosed a supplemental analyst package in connection with its earnings conference call for the quarter ended December 31, 2019 which will take place on February 19, 2020. A copy of the supplemental analyst package is attached hereto as Exhibit 99.2.

The supplemental analyst package is furnished pursuant to Item 7.01 and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

     (d) Exhibits.

Exhibit No.
 
Description
 
Earnings Release Dated February 18, 2020
 
Supplemental Analyst Package - Fourth Quarter 2019
104
 
Cover Page Interactive Data File (embedded within the Inline XBRL document)


























SIGNATURE(S)

Pursuant to the Requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
 
 
AMERICAN CAMPUS COMMUNITIES, INC.
 
 
 
 
 
 
 
 
Dated:
February 19, 2020
 
 
By: 
/s/ Kim K. Voss
 
 
 
 
 
Kim K. Voss
 
 
 
 
 
Executive Vice President, Chief Accounting Officer
 
 
 
 
 
 
 
 



(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
Exhibit 99.1

MEDIA RELEASE
402868265_acclogocolora1021a03.jpg


American Campus Communities, Inc. Reports Fourth Quarter
and Year End 2019 Financial Results

Achieves record levels in total revenue, NOI and FFOM per share with 15 consecutive years of growth in same store rental rate, rental revenue and NOI, and launches ESG Initiative.

AUSTIN, Texas -- (BUSINESS WIRE)—February 18, 2020--American Campus Communities, Inc. (NYSE:ACC) today announced the following financial results for the quarter and year ended December 31, 2019.

Highlights

Fourth Quarter 2019

Reported net income attributable to ACC of $24.7 million or $0.18 per fully diluted share, versus
$47.5 million or $0.34 per fully diluted share in the fourth quarter 2018.

Reported FFOM of $99.4 million or $0.72 per fully diluted share, versus $100.2 million or $0.72 in the fourth quarter prior year.

Grew same store net operating income (NOI) by 1.3 percent over the fourth quarter prior year with revenues increasing 2.1 percent and operating expenses increasing 3.4 percent.

Increased same store average physical occupancy to 97.5 percent for the fourth quarter 2019 compared to 97.3 percent for the fourth quarter 2018.

Selected as the strategic housing master plan partner for West Virginia University. The comprehensive award is anticipated to include multiple phases of on-campus housing including various renovation and redevelopment projects.

Completed the disposition of Landmark, a 606-bed property located in Ann Arbor, Michigan with proceeds of $100.0 million representing an economic cap rate of 4.1 percent.

Subsequent to year end, took advantage of the low interest rate environment by issuing $400.0 million of 10-year senior unsecured notes at a yield of 2.872 percent, representing a record low credit spread and yield for a mid-BBB rated REIT and one of the lowest credit spreads and yields of any 10-year REIT benchmark offering in history.

Launched a long-term partnership with the Hi, How Are You Project as the non-profit’s Hero partner with the mission to support mental health among college students. The partnership provides company staff with peer-to-peer support training, communication resources and events, including the internationally broadcast Hi, How Are You Day benefit concert.

Recognized as an honoree of Texan by Nature 20 (TxN20), an official ranking of the top 20 companies in Texas for its leadership and commitment to conservation and sustainability by Texan by Nature, a Texas-led conservation non-profit founded by former First Lady Laura Bush.




Full Year 2019

Reported net income attributable to ACC of $85.0 million or $0.60 per fully diluted share, versus $117.1 million or $0.84 per fully diluted share for the full year 2018. Excluding a $42.3 million net gain from the disposition of real estate in the prior year, net income attributable to ACC would have been $74.8 million for the full year 2018.

Grew FFOM to a record $336.2 million and $2.42 per fully diluted share, compared to $319.8 million or $2.31 for the full year 2018.

Increased same store NOI by 2.7 percent over the year ended December 31, 2018, with revenues increasing 2.7 percent and operating expenses increasing 2.7 percent, achieving the company’s 15th consecutive year of growth in same store NOI.

Delivered five new owned development and presale development projects into service. Totaling $407.3 million, the communities were 98.1 percent occupied as of September 30 and are located an average of one-tenth of a mile from their respective campuses.

Awarded five new on-campus development projects including an American Campus Equity (ACE)® development, two third-party projects and two multi-phase master plan development partner awards which include the potential for both ACE and third-party transaction structures. Total development value for these projects is expected to be approximately $2.5 billion and over 12,000 beds upon completion.

Continued construction on owned development projects totaling approximately 11,300 beds and $785.8 million with deliveries scheduled to occur in 2020 through 2023.

In May, increased the common dividend to $1.88 per share on an annualized basis, an increase of 39 percent since 2012.

Completed Environmental, Social, Governance (ESG) assessment and published a Letter of Commitment to ESG Initiatives.

“2019 was a successful year for American Campus in many areas—we raised our earnings guidance and performed at the high end of our NOI expectations, set company records in revenue and FFOM per share, and produced our 15th consecutive year of growth in same store rental rate, rental revenue and NOI,” said Bill Bayless, American Campus Communities CEO. “As we enter 2020, we are excited about the opportunities before us including a healthy fundamental environment with new supply levels in our markets near the lowest levels in a decade and the opening of three ACE developments including our pioneering project at Walt Disney World® Resort for the Disney College Program.”

Fourth Quarter Operating Results

Revenue for the 2019 fourth quarter totaled $255.8 million, an increase of 4.1 percent from $245.9 million in the fourth quarter 2018, and operating income for the quarter totaled $55.7 million versus $67.5 million in the prior year fourth quarter. The increase in revenue was primarily due to increased occupancy, rental rates and growth associated with recently completed development and presale development projects. Net income for the 2019 fourth quarter totaled $24.7 million, or $0.18 per fully diluted share, compared with net income of $47.5 million, or $0.34 per fully diluted share, for the same quarter in 2018. FFO for the 2019 fourth quarter totaled $89.8 million, or $0.65 per fully diluted share, compared to $113.3 million, or $0.82 per fully diluted share for the same quarter in 2018. The decrease in operating income, net income and FFO was primarily due to a $14.0 million non-cash impairment charge for an intangible asset related to a property tax incentive arrangement that was recorded upon the acquisition of one owned property in 2015. In addition, net income and FFO in the fourth quarter of 2018 benefited from an $8.7 million gain from the extinguishment of debt. FFOM for the 2019 fourth quarter was $99.4 million, or $0.72 per fully diluted share, as compared to $100.2 million, or $0.72 per fully diluted share for the same quarter in 2018. A reconciliation of FFO and FFOM to net income is provided in Table 3.



Same store NOI was $123.7 million in the quarter, up 1.3 percent from $122.1 million in the 2018 fourth quarter. Same store revenues increased by 2.1 percent over the 2018 fourth quarter due to an increase in average occupancy and rental rates for the 2019-2020 academic year. Same store operating expenses increased by 3.4 percent over the prior year quarter. NOI for the total owned portfolio increased 4.5 percent to $143.9 million for the quarter from $137.7 million in the comparable period of 2018. A reconciliation of same store NOI to total NOI is provided in Table 4.

Portfolio Update

Developments
The company continued construction on its $785.8 million development pipeline that includes expected deliveries in Fall 2020 through 2023. These projects are all core Class A assets located on campus in their respective markets and remain on track to meet their targeted stabilized development yields in the range of 6.25 – 6.8 percent.
Third-Party Services
The company was selected as the strategic housing master plan partner for West Virginia University following a competitive procurement process. The comprehensive award is anticipated to include multiple phases of on-campus housing including various renovation and redevelopment projects although the full scope, transaction structure, feasibility, fees, and timing have not yet been determined and will be evaluated during the due diligence process.

Capital Recycling Update

During the quarter, the company completed the sale of Landmark, a 606-bed property serving students attending the University of Michigan in Ann Arbor. The property was sold for $100.0 million which represents an economic cap rate of 4.1 percent based on in-place rental revenue, escalated trailing-12 operating expenses and historical average capital expenditures.
The company is in the final stages of the sale of one asset serving students attending the University of Maryland in College Park. The disposition of the previously acquired asset is expected to close in the first quarter of 2020 with anticipated proceeds of approximately $148.0 million representing a 4.1 percent economic cap rate.
Capital Markets
On January 30, 2020, the company issued $400.0 million of 10-year unsecured notes at a coupon rate of 2.85 percent and a yield of 2.872 percent. The issuance represented a record low credit spread and yield for a mid-BBB rated REIT and one of the lowest credit spreads and yields of any 10-year REIT benchmark offering in history. The company used the proceeds to prepay $400.0 million of 3.350% unsecured notes that were previously due to mature October 1, 2020. The prepayment resulted in approximately $4.8 million in debt extinguishment costs during the first quarter of 2020, which will be excluded from the company’s FFOM. The issuance and redemption reduced the company’s weighted average interest rate on debt and lengthened the average maturity by 1.1 years to 5.6 years.
At-The-Market (ATM) Share Offering Program
The company did not sell any shares under the ATM during the quarter.
Corporate Responsibility Update
Since its formation, the company has aspired to high standards of ethics, transparency, governance, labor practices, resident engagement, developing and operating efficient and sustainable communities, and being a good business partner. Formalizing its long-term initiative, in 2018 and continuing in 2019, the company created an ESG Committee sponsored by the company’s president and engaged a third-party ESG consultant to assist in the assessment of priorities and communication strategies.



During 2019, the committee and consultant completed an ESG evaluation of the company’s existing strengths, weaknesses, opportunities and threats, executed an entity-level ESG analysis, benchmarked existing practices versus those publicly disclosed from a selection of peers and published a Letter of Commitment to ESG found on the company’s website. In addition, a selection of recent ESG highlights include:
Improved the company’s market-leading governance characteristics by enhancing the board of directors’ diversity of thought and professional expertise and achieved female representation totaling 3 of 8 independent members.

Developed in partnership with the University of California, Irvine, what will be the company’s first net-zero energy community, where annual energy used is matched by renewable energy generated on-site, achieving carbon neutral status. Plaza Verde is targeted to achieve LEED-Platinum rating from the U.S. Green Building Council, along with the company’s ACE project with Northeastern University in Boston, LightView, bringing ACC’s total number of LEED developments to 37.
 
Retrofitted many acquired and older communities with sustainability best practices established in newer developments. For example, since 2015 the company has completed nearly 100 LED lighting retrofit projects, reducing annual energy usage by an estimated 27 million kilowatt hours, the equivalent of the annual energy output of more than 2,400 homes.

Formed a long-term partnership with the Hi, How Are You Project aimed at tackling issues of mental health among college students as part of the company’s mission to support the wellbeing of its residents. A guiding tenet for the American Campus Residence Life program, this awareness initiative includes staff training on peer-to-peer support that launched at more than 200 properties across the country, resident social events to build connection and community, and information on health and wellness.

Since its inception, the American Campus Charity Foundation has given nearly $4 million to charitable organizations focused on supporting youth in need and education in the Austin community as well as in the local communities where the company operates.
“Corporate responsibility is fundamental to our mission to consistently provide every resident and team member with an environment conducive to healthy living, personal growth, academic achievement and professional success,” said Jim Hopke, American Campus Communities President. “This mission drives the company’s ESG vision to create healthy, sustainable environments with a sense of community and connection by giving back, investing in our employees and driving long-term value for all stakeholders. Our ESG team and the entire organization are pleased with the 2019 advancements and are excited to further not only the ESG program but an overall business strategy that serves our full set of stakeholders – including our investors, residents, employees, university clients, supply chain and vendor partners and communities.”
2020 Outlook
The company believes that the financial results for the fiscal year ending December 31, 2020 may be affected by, among other factors:
national and regional economic trends and events;
the success of leasing the company’s owned properties for the 2020-2021 academic year;
the timing and amount of any acquisitions, dispositions or joint venture activity;
interest rate risk;
the timing of commencement and completion of construction on owned development projects;
the ability of the company to be awarded and the timing of the commencement of construction on third-party development projects;
university enrollment, funding and policy trends;
the ability of the company to earn third-party management revenues;
the amount of income recognized by the taxable REIT subsidiaries and any corresponding income tax expense;
the ability of the company to integrate any acquired properties;
the outcome of legal proceedings arising in the normal course of business; and
the finalization of property tax rates and assessed values in certain jurisdictions.
 



Based upon these factors, management anticipates that fiscal year 2020 FFO will be in the range of $2.44 to $2.54 per fully diluted share and FFOM will be in the range of $2.41 to $2.51 per fully diluted share. Additionally, management anticipates that first quarter 2020 FFO will be in the range of $0.67 to $0.68 per fully diluted share and FFOM will be in the range of $0.67 to $0.69 per fully diluted share. For additional details regarding the company’s 2020 outlook, please see pages S-18 and S-19 of the Supplemental Analyst Package 4Q 2019. All guidance is based on the current expectations and judgment of the company’s management team.

A reconciliation of the range provided for projected net income to projected FFO and FFOM is included in Table 5.
Supplemental Information and Earnings Conference Call
Supplemental financial and operating information, as well as this release, are available in the investor relations section of the American Campus Communities website, www.americancampus.com. In addition, the company will host a conference call to discuss fourth quarter and full year 2019 results and the 2020 outlook on Wednesday, February 19, 2020 at 10:00 a.m. ET (9:00 a.m. CT). The conference call may be accessed by dialing 888-317-6003 passcode 1199756, or 412-317-6061 for international participants.
To listen to the live webcast, go to www.americancampus.com at least 15 minutes prior to the call so that required audio software can be downloaded. A replay of the conference call will be available beginning one hour after the end of the call until March 4, 2020 by dialing 877-344-7529 or 412-317-0088 conference number 10138120. Additionally, the replay will be available for one year at www.americancampus.com.
Non-GAAP Financial Measures
The National Association of Real Estate Investment Trusts ("NAREIT") currently defines Funds from Operations ("FFO") as net income or loss attributable to common shares computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains or losses from depreciable operating property sales, impairment charges and real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. We present FFO because we consider it an important supplemental measure of our operating performance and believe it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs. We also believe it is meaningful to present a measure we refer to as FFO-Modified, or (“FFOM”), which reflects certain adjustments related to the economic performance of our on-campus participating properties and excludes property acquisition costs and other non-cash items, as we determine in good faith. FFO and FFOM should not be considered as alternatives to net income or loss computed in accordance with GAAP as an indicator of our financial performance or to cash flow from operating activities computed in accordance with GAAP as an indicator of our liquidity, nor are these measures indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions.
The company defines property net operating income (“NOI”) as property revenues less direct property operating expenses, excluding depreciation, but including allocated corporate general and administrative expenses.
About American Campus Communities
American Campus Communities, Inc. is the largest owner, manager and developer of high-quality student housing communities in the United States. The company is a fully integrated, self-managed and self-administered equity real estate investment trust (REIT) with expertise in the design, finance, development, construction management and operational management of student housing properties. As of December 31, 2019, American Campus Communities owned 167 student housing properties containing approximately 112,800 beds. Including its owned and third-party managed properties, ACC's total managed portfolio consisted of 203 properties with approximately 139,300 beds. Visit www.americancampus.com.
Forward-Looking Statements
In addition to historical information, this press release contains forward-looking statements under the applicable federal securities law. These statements are based on management’s current expectations and assumptions regarding markets in which American Campus Communities, Inc. (the “Company”) operates, operational strategies, anticipated events and trends, the economy, and other future conditions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are



difficult to predict. For discussions of some risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements, please refer to our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2018 under the heading “Risk Factors” and under the heading “Business - Forward-looking Statements” and subsequent quarterly reports on Form 10-Q. We undertake no obligation to publicly update any forward-looking statements, including our expected 2020 operating results, whether as a result of new information, future events, or otherwise.







Table 1
American Campus Communities, Inc. and Subsidiaries
Consolidated Balance Sheets
(dollars in thousands)
 
 
December 31, 2019
 
December 31, 2018
 
 
(unaudited)
 
 
Assets
 
 
 
 
 
 
 
 
 
Investments in real estate:
 
 
 
 
Owned properties, net
 
$
6,694,715

 
$
6,583,397

On-campus participating properties, net
 
75,188

 
77,637

Investments in real estate, net
 
6,769,903

 
6,661,034

 
 
 
 
 
Cash and cash equivalents
 
54,650

 
71,238

Restricted cash
 
26,698

 
35,279

Student contracts receivable, net
 
13,470

 
8,565

Operating lease right of use assets 1
 
460,857

 

Other assets 1
 
234,176

 
262,730

 
 
 
 
 
Total assets
 
$
7,559,754

 
$
7,038,846

 
 
 
 
 
Liabilities and equity
 
 

 
 

 
 
 
 
 
Liabilities:
 
 

 
 

Secured mortgage, construction and bond debt, net
 
$
787,426

 
$
853,084

Unsecured notes, net
 
1,985,603

 
1,588,446

Unsecured term loans, net
 
199,121

 
198,769

Unsecured revolving credit facility
 
425,700

 
387,300

Accounts payable and accrued expenses
 
88,411

 
88,767

Operating lease liabilities 2
 
473,070

 

   Other liabilities 2
 
157,368

 
191,233

Total liabilities
 
4,116,699

 
3,307,599

 
 
 
 
 
Redeemable noncontrolling interests
 
104,381

 
184,446

 
 
 
 
 
Equity:
 
 

 
 

American Campus Communities, Inc. and Subsidiaries
  stockholders’ equity:
 
 
 
 
Common stock
 
1,373

 
1,370

Additional paid in capital
 
4,458,456

 
4,458,240

Common stock held in rabbi trust
 
(3,486
)
 
(3,092
)
Accumulated earnings and dividends
 
(1,144,721
)
 
(971,070
)
Accumulated other comprehensive loss
 
(16,946
)
 
(4,397
)
Total American Campus Communities, Inc. and
  Subsidiaries stockholders’ equity
 
3,294,676

 
3,481,051

  Noncontrolling interests – partially owned properties
 
43,998

 
65,750

Total equity
 
3,338,674

 
3,546,801

 
 
 
 
 
Total liabilities and equity
 
$
7,559,754

 
$
7,038,846


1.
For purposes of calculating net asset value ("NAV") at December 31, 2019, the company excludes other assets of approximately $4.4 million related to net deferred financing costs on its revolving credit facility and the net value of in-place leases and operating lease right of use assets disclosed above associated with new lease accounting guidance that was adopted by the company on January 1, 2019.
2.
For purposes of calculating NAV at December 31, 2019, the company excludes other liabilities of approximately $46.3 million related to deferred revenue and fee income, as well as operating lease liabilities disclosed above associated with new lease accounting guidance that was adopted by the company on January 1, 2019.







Table 2
American Campus Communities, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income
(dollars in thousands, except share and per share data)
 
 
Three Months Ended
December 31,
 
Twelve Months Ended
December 31,
 
 
2019
 
2018
 
2019
 
2018
 
 
(unaudited)
 
(unaudited)
Revenues
 
 
 
 
 
 
 
 
Owned properties 1
 
$
238,908

 
$
228,105

 
$
877,565

 
$
825,959

On-campus participating properties 1
 
11,558

 
10,991

 
36,346

 
34,596

Third-party development services
 
662

 
3,398

 
13,051

 
7,281

Third-party management services
 
3,818

 
2,503

 
12,936

 
9,814

Resident services
 
889

 
876

 
3,144

 
3,160

Total revenues
 
255,835

 
245,873

 
943,042

 
880,810

 
 
 
 
 
 
 
 
 
Operating expenses
 
 

 
 

 
 
 
 

Owned properties 1
 
95,896

 
91,328

 
390,664

 
373,521

On-campus participating properties 1
 
3,443

 
3,572

 
15,028

 
14,602

Third-party development and management services
 
5,786

 
3,886

 
19,915

 
15,459

General and administrative  2
 
8,486

 
7,482

 
31,081

 
34,537

Depreciation and amortization
 
68,546

 
68,756

 
275,046

 
263,203

Ground/facility leases
 
4,151

 
3,329

 
14,151

 
11,855

(Gain) loss from disposition of real estate, net
 
(229
)
 

 
53

 
(42,314
)
Provision for impairment 3
 
14,013

 

 
17,214

 

Other operating income
 

 

 

 
(2,648
)
Total operating expenses
 
200,092

 
178,353

 
763,152

 
668,215

 
 
 
 
 
 
 
 
 
Operating income
 
55,743

 
67,520

 
179,890

 
212,595

 
 
 
 
 
 
 
 
 
Nonoperating income (expenses)
 
 

 
 

 
 
 
 

Interest income
 
831

 
1,094

 
3,686

 
4,834

Interest expense
 
(28,855
)
 
(27,021
)
 
(111,287
)
 
(99,228
)
Amortization of deferred financing costs
 
(1,347
)
 
(1,072
)
 
(5,012
)
 
(5,816
)
Gain from extinguishment of debt, net 4
 

 
8,651

 
20,992

 
7,867

Other nonoperating income
 

 
731

 

 
1,301

Total nonoperating expenses
 
(29,371
)
 
(17,617
)
 
(91,621
)
 
(91,042
)
 
 
 
 
 
 
 
 
 
   Income before income taxes
 
26,372

 
49,903

 
88,269

 
121,553

Income tax provision 5
 
(524
)
 
(282
)
 
(1,507
)
 
(2,429
)
Net income
 
25,848

 
49,621

 
86,762

 
119,124

Net income attributable to noncontrolling interests
 
(1,128
)
 
(2,117
)
 
(1,793
)
 
(2,029
)
Net income (loss) attributable to ACC, Inc. and
  Subsidiaries common stockholders
 
$
24,720

 
$
47,504

 
$
84,969

 
$
117,095

Other comprehensive income (loss)
 
 

 
 

 
 
 
 

Change in fair value of interest rate swaps and other
 
1,983

 
(2,422
)
 
(12,549
)
 
(1,696
)
Comprehensive income
 
$
26,703

 
$
45,082

 
$
72,420

 
$
115,399

 
 
 
 
 
 
 
 
 
Net income (loss) per share attributable to ACC, Inc.
  and Subsidiaries common shareholders
 
 
 
 

 
 
 
 

 
 
 
 
 
 
 
 
 
Basic
 
$
0.18

 
$
0.34

 
$
0.61

 
$
0.84

 
 
 
 
 
 
 
 
 
Diluted
 
$
0.18

 
$
0.34

 
$
0.60

 
$
0.84

 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding
 
 

 
 

 
 
 
 

 
 
 
 
 
 
 
 
 
Basic
 
137,404,752

 
137,031,547

 
137,295,837

 
136,815,051

 
 
 
 
 
 
 
 
 
Diluted
 
138,372,433

 
137,903,783

 
138,286,778

 
137,722,049


1.
The company adopted new lease accounting guidance on January 1, 2019, which required the reclassification of the provision for uncollectible accounts from operating expenses to revenue. The reclassification is reflected on a prospective basis starting in the first quarter 2019, but the prior year amounts have not been reclassified. The provision for uncollectible accounts for owned properties was $1.2 million and $1.5 million for the three months ended December 31, 2019 and 2018, respectively, and was $7.3 million and $7.1 million for the twelve months ended December 31, 2019 and 2018, respectively. The provision for uncollectible accounts for on-campus participating properties was $0.1 million for both the three months ended December 31, 2019 and 2018, and was a $0.5 million benefit and a $0.3 million expense for the twelve months ended December 31, 2019 and 2018, respectively.
2.
The twelve months ended December 31, 2018 amount includes $5.8 million of transaction costs incurred in connection with the closing of the ACC / Allianz joint venture transaction in May 2018.
3.
The three and twelve months ended December 31, 2019 amount represents a non-cash impairment charge for an intangible asset related to a property tax incentive arrangement at one owned property. The twelve months ended December 31, 2019 also include an impairment charge recorded in March 2019 concurrent with the classification of one owned property as held for sale.
4.
The twelve months ended December 31, 2019 amounts represent the gain on the extinguishment of debt associated with a property that was transferred to the lender in settlement of the property's mortgage loan in July 2019.
5.
Income tax provision / benefit for the twelve months ended December 31, 2018 includes a $1.3 million provision related to an estimated taxable gain resulting from the ACC / Allianz joint venture transaction which closed in May 2018.




Table 3
American Campus Communities, Inc. and Subsidiaries
Consolidated Statements of Funds from Operations (“FFO”)
(unaudited, dollars in thousands, except share and per share data)
 
 
Three Months Ended
December 31,
 
Twelve Months Ended
December 31,
 
 
2019
 
2018
 
2019
 
2018
Net income attributable to ACC, Inc. and Subsidiaries
  common stockholders
 
$
24,720

 
$
47,504

 
$
84,969

 
$
117,095

Noncontrolling interests' share of net income
 
1,128

 
2,117

 
1,793

 
2,029

 
 
 
 
 
 
 
 
 
JV ("Joint Venture") partners' share of net income
 
(1,030
)
 
(1,757
)
 
(1,398
)
 
(773
)
JV partners' share of depreciation and amortization
 
(2,156
)
 
(2,051
)
 
(8,644
)
 
(5,135
)
JV partners' share of FFO
 
(3,186
)
 
(3,808
)
 
(10,042
)
 
(5,908
)
 
 
 
 
 
 
 
 
 
(Gain) loss from disposition of real estate
 
(229
)
 

 
53

 
(42,314
)
Elimination of provision for real estate impairment
 

 

 
3,201

 

Total depreciation and amortization
 
68,546

 
68,756

 
275,046

 
263,203

Corporate depreciation 1
 
(1,200
)
 
(1,249
)
 
(4,728
)
 
(4,669
)
FFO attributable to common stockholders and OP unitholders
 
89,779

 
113,320

 
350,292

 
329,436

Elimination of operations of on-campus participating properties ("OCPPs")
 
 

 
 

 
 
 
 

Net income from OCPPs
 
(4,449
)
 
(3,801
)
 
(6,587
)
 
(5,516
)
Amortization of investment in OCPPs
 
(2,046
)
 
(1,963
)
 
(8,380
)
 
(7,819
)
 
 
83,284

 
107,556

 
335,325

 
316,101

Modifications to reflect operational performance of on-campus participating properties
 
 

 
 

 
 

 
 

Our share of net cashflow 2
 
1,004

 
696

 
3,067

 
2,928

Management fees and other
 
652

 
506

 
2,249

 
1,564

Contribution from on-campus participating properties
 
1,656

 
1,202

 
5,316

 
4,492

 
 
 
 
 
 
 
 
 
Transaction costs 3
 
451

 

 
598

 
7,586

Elimination of gain from extinguishment of debt 4
 

 
(8,651
)
 
(20,992
)
 
(7,867
)
Elimination of provision for impairment of intangible asset 5
 
14,013

 

 
14,013

 

Elimination of gain from litigation settlement 6
 

 
(675
)
 

 
(3,323
)
Elimination of FFO from property in receivership 7
 

 
811

 
1,912

 
2,848

Funds from operations-modified (“FFOM”) attributable to common stockholders and OP unitholders
 
$
99,404

 
$
100,243

 
$
336,172

 
$
319,837

 
 
 
 
 
 
 
 
 
FFO per share – diluted
 
$
0.65

 
$
0.82

 
$
2.52

 
$
2.38

 
 
 
 
 
 
 
 
 
FFOM per share – diluted
 
$
0.72

 
$
0.72

 
$
2.42

 
$
2.31

 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding - diluted
 
138,876,150

 
138,576,084

 
138,860,311

 
138,571,270

 
 
 
 
 
 
 
 
 

1.
Represents depreciation on corporate assets not added back for purposes of calculating FFO.
2.
50% of the properties’ net cash available for distribution after payment of operating expenses, debt service (including repayment of principal) and capital expenditures which is included in ground/facility leases expense in the consolidated statements of comprehensive income (refer to table 2).
3.
The three months and year ended December 31, 2019 amounts represent transaction costs incurred in connection with the closing of presale development transactions. The year ended December 31, 2018 amount represents transaction costs incurred in connection with the closing of a presale transaction and transaction costs incurred in connection with the closing of the ACC / Allianz real estate joint venture transaction in May 2018, net of an adjustment to estimated state income tax related to a tax gain resulting from the ACC / Allianz joint venture transaction.
4.
The year ended December 31, 2019 amount represents gains associated with the extinguishment of a mortgage loan due to the transfer of an owned property to the lender in satisfaction of the property's mortgage loan. The three months ended December 31, 2018 amount represents a gain related to the planned extinguishment of debt resulting from the unwinding of a New Market Tax Credit ("NMTC") structure at one of the company's owned properties. The year ended December 31, 2018 amount represents the gain discussed previously, offset by losses associated with the early extinguishment of mortgage loans due to real estate disposition transactions, including the sale of partial ownership interests in properties. Such costs are excluded from gains from dispositions of real estate reported in accordance with GAAP.
5.
Represents a non-cash impairment charge for an intangible asset related to a property tax incentive arrangement at one owned property.
6.
Represents a gain related to cash proceeds received from a litigation settlement.
7.
Represents FFO for an owned property that was transferred to the lender in July 2019 in settlement of the property's mortgage loan.




Table 4
American Campus Communities, Inc. and Subsidiaries
Owned Properties Results of Operations1 
(unaudited, dollars in thousands)
 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
 
2019
 
2018
 
$ Change
 
% Change
 
2019
 
2018
 
$ Change
 
% Change
Owned properties revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same store properties
$
209,011

 
$
204,651

 
$
4,360

 
2.1
%
 
$
791,480

 
$
770,510

 
$
20,970

 
2.7
%
New properties
29,174

 
18,766

 
10,408

 
 
 
78,290

 
28,360

 
49,930

 
 
Sold and held for sale properties 2
1,612

 
3,998

 
(2,386
)
 
 
 
10,939

 
23,100

 
(12,161
)
 
 
Total revenues 3 4
$
239,797

 
$
227,415

 
$
12,382

 
5.4
%
 
$
880,709

 
$
821,970

 
$
58,739

 
7.1
%
Owned properties operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same store properties 
$
85,308

 
$
82,517

 
$
2,791

 
3.4
%
 
$
353,944

 
$
344,509

 
$
9,435

 
2.7
%
New properties
9,755

 
5,112

 
4,643

 
 
 
30,557

 
10,250

 
20,307

 
 
Other 5
128

 
158

 
(30
)
 
 
 
338

 
719

 
(381
)
 
 
Sold and held for sale properties 2 6
705

 
1,975

 
(1,270
)
 
 
 
5,825

 
10,894

 
(5,069
)
 
 
Total operating expenses 3
$
95,896

 
$
89,762

 
$
6,134

 
6.8
%
 
$
390,664

 
$
366,372

 
$
24,292

 
6.6
%
Owned properties net operating income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same store properties 
$
123,703

 
$
122,134

 
$
1,569

 
1.3
%
 
$
437,536

 
$
426,001

 
$
11,535

 
2.7
%
New properties
19,419

 
13,654

 
5,765

 
 
 
47,733

 
18,110

 
29,623

 
 
Other 5
(128
)
 
(158
)
 
30

 
 
 
(338
)
 
(719
)
 
381

 
 
Sold and held for sale properties 2 6
907

 
2,023

 
(1,116
)
 
 
 
5,114

 
12,206

 
(7,092
)
 
 
Total net operating income
$
143,901

 
$
137,653

 
$
6,248

 
4.5
%
 
$
490,045

 
$
455,598

 
$
34,447

 
7.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

1.
The same store grouping above represents properties owned and operating for both of the entire years ended December 31, 2019 and 2018, which are not conducting or planning to conduct substantial development, redevelopment, or repositioning activities, and are not classified as held for sale as of December 31, 2019. Includes the full operating results of properties owned through joint ventures in which the company has a controlling financial interest and which are consolidated for financial reporting purposes.
2.
Includes properties sold in 2018 and 2019, and one property that was transferred to the lender in July 2019 in settlement of the property's mortgage loan.
3.
The company adopted new lease accounting guidance on January 1, 2019, which required the reclassification of the provision for uncollectible accounts from operating expenses to revenue starting in the first quarter 2019. To ensure comparability between periods when calculating same store and new property results of operations, the reclassification has also been made for the prior year. See table 2 for the total amounts reclassified from operating expenses to revenue for all properties for both periods presented.
4.
Includes revenues that are reflected as Resident Services Revenue on the accompanying consolidated statements of comprehensive income.
5.
Includes transaction costs and recurring professional fees related to the formation and operation of the ACC / Allianz joint venture that are included in owned properties operating expenses in the consolidated statements of comprehensive income (refer to table 2).
6.
Does not include the allocation of payroll and other administrative costs related to corporate management and oversight.





Table 5
American Campus Communities, Inc. and Subsidiaries
2020 and Q1 2020 Outlook1 
(dollars in thousands, except share and per share data)
 
 
2020 Guidance
 
Q1 2020 Guidance
 
 
Low
 
High
 
Low
 
High
 
 
 
 
 
 
 
 
 
Net income2
 
$
82,800

 
$
96,300

 
$
29,500

 
$
31,500

Noncontrolling interests' share of net income
 

 

 
500

 
500

 
 
 
 
 
 
 
 
 
Joint Venture ("JV") partners' share of net loss (income)
 
400

 
400

 
(400
)
 
(400
)
JV partners' share of depreciation and amortization
 
(7,600
)
 
(7,600
)
 
(1,900
)
 
(1,900
)
JV partners' share of funds from operations
 
(7,200
)
 
(7,200
)
 
(2,300
)
 
(2,300
)
 
 
 
 
 
 
 
 
 
Total depreciation and amortization
 
268,300

 
268,300

 
66,400

 
66,400

Corporate depreciation
 
(3,900
)
 
(3,900
)
 
(1,000
)
 
(1,000
)
FFO
 
$
340,000

 
$
353,500

 
$
93,100

 
$
95,100

 
 
 
 
 
 
 
 
 
Elimination of operations from on-campus participating properties ("OCPP")
 
(15,000
)
 
(14,600
)
 
(5,600
)
 
(5,500
)
Contribution from OCPPs
 
5,300

 
5,900

 
1,400

 
1,600

Elimination of loss from early extinguishment of debt3
 
4,800

 
4,800

 
4,800

 
4,800

Funds from operations - modified ("FFOM")
 
$
335,100

 
$
349,600

 
$
93,700

 
$
96,000

 
 
 
 
 
 
 
 
 
Net income per share - diluted
 
$
0.59

 
$
0.69

 
$
0.21

 
$
0.23

 
 
 
 
 
 
 
 
 
FFO per share - diluted
 
$
2.44

 
$
2.54

 
$
0.67

 
$
0.68

 
 
 
 
 
 
 
 
 
FFOM per share - diluted
 
$
2.41

 
$
2.51

 
$
0.67

 
$
0.69

 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding - diluted
 
139,228,200

 
139,228,200

 
139,086,700

 
139,086,700

 
 
 
 
 
 
 
 
 

1.
The company believes that the financial results for the fiscal year ending December 31, 2020 may be affected by, among other factors:
national and regional economic trends and events;
the success of leasing the company's owned properties for the 2020-2021 academic year;
the timing and amount of any acquisitions, dispositions or joint venture activity;
interest rate risk;
the timing of commencement and completion of construction on owned development projects;
the ability of the company to be awarded and the timing of the commencement of construction on third-party development projects;
university enrollment, funding and policy trends;
the ability of the company to earn third-party management revenues;
the amount of income recognized by the taxable REIT subsidiaries and any corresponding income tax expense;
the ability of the company to integrate any acquired properties;
the outcome of legal proceedings arising in the normal course of business; and
the finalization of property tax rates and assessed values in certain jurisdictions.
2.
Does not include any potential gain or loss on sale from anticipated dispositions, as such will be eliminated for the purposes of calculating FFOM.
3.
Represents costs related to the prepayment of the company's $400 million 3.350% unsecured notes that were previously due to mature in October 2020 using proceeds from the company's $400 million 10-year unsecured notes issued in January 2020.





CONTACT: American Campus Communities, Inc., Austin
Ryan Dennison, 512-732-1000


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Section 3: EX-99.2 (EXHIBIT 99.2)

ex992q42019supplementala
Q4 Supplemental Package February 18, 2020 Table of Contents Financial Highlights S-1 Consolidated Balance Sheets S-2 Consolidated Statements of Comprehensive Income S-3 Consolidated Statements of Funds from Operations ("FFO") S-5 Owned Properties Results of Operations S-6 Same Store Owned Properties Operating Expenses S-7 Seasonality of Operations S-8 Seasonality of Operations - Build-up to 2020 Same Store Grouping S-9 Investment Update S-10 Owned Development Update S-11 Presale Development Update S-12 Third-Party Development Update S-13 Management Services Update S-14 Capital Structure S-15 Interest Coverage S-16 Capital Allocation – Long Term Funding Plan (2020 - 2023) S-17 Outlook - Summary (Full Year and Q1 2020) S-18 2020 Outlook - Detail S-19 Detail of Property Groupings S-20 Definitions S-21 Investor Information S-23


 
Financial Highlights ($ in thousands, except share and per share data) Operating Data Three Months Ended December 31, Year Ended December 31, 2019 2018 $ Change % Change 2019 2018 $ Change % Change Total revenues $ 255,835 $ 245,873 $ 9,962 4.1% $ 943,042 $ 880,810 $ 62,232 7.1% Operating income 55,743 67,520 (11,777) (17.4%) 179,890 212,595 (32,705) (15.4%) Net income attributable to ACC 24,720 47,504 (22,784) (48.0%) 84,969 117,095 (32,126) (27.4%) Net income per share - basic 0.18 0.34 0.61 0.84 Net income per share - diluted 0.18 0.34 0.60 0.84 Funds From Operations - ("FFO") 1 89,779 113,320 (23,541) (20.8%) 350,292 329,436 20,856 6.3% FFO per share - diluted 1 0.65 0.82 (0.17) (20.7%) 2.52 2.38 0.14 5.9% Funds From Operations - Modified ("FFOM") 1 99,404 100,243 (839) (0.8%) 336,172 319,837 16,335 5.1% FFOM per share - diluted 1 0.72 0.72 — 0.0% 2.42 2.31 0.11 4.8% Market Capitalization and Unsecured Notes Covenants 2 December 31, 2019 December 31, 2018 Debt to total market capitalization 34.3% 34.6% Net debt to EBITDA 3 6.7x 6.3x Unencumbered asset value to total asset value 82.5% 81.2% Total debt to total asset value 39.8% 36.5% Secured debt to total asset value 9.1% 10.2% Unencumbered asset value to unsecured debt 269.5% 308.0% Interest coverage 3 3.8x 4.2x 1. Refer to page S-5 for a reconciliation to net income, the most directly comparable GAAP measure. 2. Refer to the definitions outlined on pages S-21 and S-22 for detailed definitions of terms appearing on this page. 3. Refer to calculations on page S-16, including a reconciliation to net income and interest expense, the most directly comparable GAAP measures. S-1


 
Consolidated Balance Sheets ($ in thousands) December 31, 2019 December 31, 2018 (unaudited) Assets Investments in real estate: Owned properties, net $ 6,694,715 $ 6,583,397 On-campus participating properties, net 75,188 77,637 Investments in real estate, net 6,769,903 6,661,034 Cash and cash equivalents 54,650 71,238 Restricted cash 26,698 35,279 Student contracts receivable, net 13,470 8,565 Operating lease right of use assets 1 460,857 — Other assets 1 234,176 262,730 Total assets $ 7,559,754 $ 7,038,846 Liabilities and equity Liabilities: Secured mortgage, construction and bond debt, net $ 787,426 $ 853,084 Unsecured notes, net 1,985,603 1,588,446 Unsecured term loans, net 199,121 198,769 Unsecured revolving credit facility 425,700 387,300 Accounts payable and accrued expenses 88,411 88,767 Operating lease liabilities 2 473,070 — Other liabilities 2 157,368 191,233 Total liabilities 4,116,699 3,307,599 Redeemable noncontrolling interests 104,381 184,446 Equity: American Campus Communities, Inc. and Subsidiaries stockholders' equity: Common stock 1,373 1,370 Additional paid in capital 4,458,456 4,458,240 Common stock held in rabbi trust (3,486) (3,092) Accumulated earnings and dividends (1,144,721) (971,070) Accumulated other comprehensive loss (16,946) (4,397) Total American Campus Communities, Inc. and Subsidiaries stockholders' equity 3,294,676 3,481,051 Noncontrolling interests - partially owned properties 43,998 65,750 Total equity 3,338,674 3,546,801 Total liabilities and equity $ 7,559,754 $ 7,038,846 1. For purposes of calculating net asset value ("NAV") at December 31, 2019, the company excludes other assets of approximately $4.4 million related to net deferred financing costs on its revolving credit facility and the net value of in-place leases, as well as operating lease right of use assets disclosed above associated with new lease accounting guidance that was adopted by the company on January 1, 2019. 2. For purposes of calculating NAV at December 31, 2019, the company excludes other liabilities of approximately $46.3 million related to deferred revenue and fee income, as well as operating lease liabilities disclosed above associated with new lease accounting guidance that was adopted by the company on January 1, 2019. S-2


 
Consolidated Statements of Comprehensive Income ($ in thousands, except share and per share data) Three Months Ended December 31, Year Ended December 31, 2019 2018 $ Change 2019 2018 $ Change Revenues (unaudited) (unaudited) Owned properties 1 $ 238,908 $ 228,105 $ 10,803 $ 877,565 $ 825,959 $ 51,606 On-campus participating properties 1 11,558 10,991 567 36,346 34,596 1,750 Third-party development services 662 3,398 (2,736) 13,051 7,281 5,770 Third-party management services 3,818 2,503 1,315 12,936 9,814 3,122 Resident services 889 876 13 3,144 3,160 (16) Total revenues 255,835 245,873 9,962 943,042 880,810 62,232 Operating expenses Owned properties 1 95,896 91,328 4,568 390,664 373,521 17,143 On-campus participating properties 1 3,443 3,572 (129) 15,028 14,602 426 Third-party development and management services 5,786 3,886 1,900 19,915 15,459 4,456 General and administrative 2 8,486 7,482 1,004 31,081 34,537 (3,456) Depreciation and amortization 68,546 68,756 (210) 275,046 263,203 11,843 Ground/facility leases 4,151 3,329 822 14,151 11,855 2,296 (Gain) loss from disposition of real estate, net (229) — (229) 53 (42,314) 42,367 Provision for impairment 3 14,013 — 14,013 17,214 — 17,214 Other operating income — — — — (2,648) 2,648 Total operating expenses 200,092 178,353 21,739 763,152 668,215 94,937 Operating income 55,743 67,520 (11,777) 179,890 212,595 (32,705) Nonoperating income (expenses) Interest income 831 1,094 (263) 3,686 4,834 (1,148) Interest expense (28,855) (27,021) (1,834) (111,287) (99,228) (12,059) Amortization of deferred financing costs (1,347) (1,072) (275) (5,012) (5,816) 804 Gain from extinguishment of debt, net 4 — 8,651 (8,651) 20,992 7,867 13,125 Other nonoperating income — 731 (731) — 1,301 (1,301) Total nonoperating expenses (29,371) (17,617) (11,754) (91,621) (91,042) (579) Income before income taxes 26,372 49,903 (23,531) 88,269 121,553 (33,284) Income tax provision 5 (524) (282) (242) (1,507) (2,429) 922 Net income 25,848 49,621 (23,773) 86,762 119,124 (32,362) Net income attributable to noncontrolling interests (1,128) (2,117) 989 (1,793) (2,029) 236 Net income attributable to ACC, Inc. and Subsidiaries common stockholders $ 24,720 $ 47,504 $ (22,784) $ 84,969 $ 117,095 $ (32,126) Other comprehensive income (loss) Change in fair value of interest rate swaps and other 1,983 (2,422) 4,405 (12,549) (1,696) (10,853) Comprehensive income $ 26,703 $ 45,082 $ (18,379) $ 72,420 $ 115,399 $ (42,979) Net income per share attributable to ACC, Inc. and Subsidiaries common stockholders Basic $ 0.18 $ 0.34 $ 0.61 $ 0.84 Diluted $ 0.18 $ 0.34 $ 0.60 $ 0.84 Weighted-average common shares outstanding Basic 137,404,752 137,031,547 137,295,837 136,815,051 Diluted 138,372,433 137,903,783 138,286,778 137,722,049 Refer to the next page for footnote explanations. S-3


 
Consolidated Statements of Comprehensive Income ($ in thousands, except share and per share data) 1. The company adopted new lease accounting guidance on January 1, 2019, which required the reclassification of the provision for uncollectible accounts from operating expenses to revenue. The reclassification is reflected starting in the first quarter of 2019, but the prior year amounts have not been reclassified. The provision for uncollectible accounts for owned properties was $1.2 million and $1.5 million for the three months ended December 31, 2019 and 2018, respectively, and was $7.3 million and $7.1 million for the twelve months ended December 31, 2019 and 2018, respectively. The provision for uncollectible accounts for on-campus participating properties was $0.1 million for both the three months ended December 31, 2019 and 2018, and was a $0.5 million benefit and a $0.3 million expense for the twelve months ended December 31, 2019 and 2018, respectively. 2. The twelve months ended December 31, 2018 amount includes $5.8 million of transaction costs incurred in connection with the closing of the ACC / Allianz joint venture transaction in May 2018. 3. The three and twelve months ended December 31, 2019 amount represents a non-cash impairment charge for an intangible asset related to a property tax incentive arrangement at one owned property. The twelve months ended December 31, 2019 also includes an impairment charge recorded in March 2019 concurrent with the classification of one owned property as held for sale. 4. The twelve months ended December 31, 2019 amount represents the gain on the extinguishment of debt associated with a property that was transferred to the lender in settlement of the property's mortgage loan in July 2019. 5. Income tax provision for the twelve months ended December 31, 2018 includes a $1.3 million provision related to an estimated taxable gain resulting from the ACC / Allianz joint venture transaction which closed in May 2018. S-4


 
Consolidated Statements of Funds from Operations ("FFO") (Unaudited, $ in thousands, except share and per share data) Three Months Ended December 31, Year Ended December 31, 2019 2018 $ Change 2019 2018 $ Change Net income attributable to ACC, Inc. and Subsidiaries common stockholders $ 24,720 $ 47,504 $ (22,784) $ 84,969 $ 117,095 $ (32,126) Noncontrolling interests' share of net income 1,128 2,117 (989) 1,793 2,029 (236) JV ("Joint Venture") partners' share of net income (1,030) (1,757) 727 (1,398) (773) (625) JV partners' share of depreciation and amortization (2,156) (2,051) (105) (8,644) (5,135) (3,509) JV partners' share of FFO (3,186) (3,808) 622 (10,042) (5,908) (4,134) (Gain) loss from disposition of real estate (229) — (229) 53 (42,314) 42,367 Elimination of provision for real estate impairment — — — 3,201 — 3,201 Total depreciation and amortization 68,546 68,756 (210) 275,046 263,203 11,843 Corporate depreciation 1 (1,200) (1,249) 49 (4,728) (4,669) (59) FFO attributable to common stockholders and OP unitholders 89,779 113,320 (23,541) 350,292 329,436 20,856 Elimination of operations of on-campus participating properties ("OCPPs") Net income from OCPPs (4,449) (3,801) (648) (6,587) (5,516) (1,071) Amortization of investment in OCPPs (2,046) (1,963) (83) (8,380) (7,819) (561) 83,284 107,556 (24,272) 335,325 316,101 19,224 Modifications to reflect operational performance OCPPs Our share of net cashflow 2 1,004 696 308 3,067 2,928 139 Management fees and other 652 506 146 2,249 1,564 685 Contribution from OCPPs 1,656 1,202 454 5,316 4,492 824 Transaction costs 3 451 — 451 598 7,586 (6,988) Elimination of gain from extinguishment of debt 4 — (8,651) 8,651 (20,992) (7,867) (13,125) Elimination of provision for impairment of intangible asset 5 14,013 — 14,013 14,013 — 14,013 Elimination of gain from litigation settlement 6 — (675) 675 — (3,323) 3,323 Elimination of FFO from property in receivership 7 — 811 (811) 1,912 2,848 (936) Funds from operations-modified ("FFOM") attributable to common stockholders and OP unitholders $ 99,404 $ 100,243 $ (839) $ 336,172 $ 319,837 $ 16,335 FFO per share - diluted $ 0.65 $ 0.82 $ 2.52 $ 2.38 FFOM per share - diluted $ 0.72 $ 0.72 $ 2.42 $ 2.31 Weighted-average common shares outstanding - diluted 138,876,150 138,576,084 138,860,311 138,571,270 1. Represents depreciation on corporate assets not added back for purposes of calculating FFO. 2. 50% of the properties’ net cash available for distribution after payment of operating expenses, debt service (including repayment of principal) and capital expenditures which is included in ground/ facility leases expense in the consolidated statements of comprehensive income (refer to page S-3). 3. The three months and year ended December 31, 2019 amounts represent transaction costs incurred in connection with the closing of presale development transactions. The year ended December 31, 2018 amount represents transaction costs incurred in connection with the closing of a presale development transaction and transaction costs incurred in connection with the closing of the ACC / Allianz real estate joint venture transaction in May 2018, net of an adjustment to estimated state income tax related to a tax gain resulting from the ACC / Allianz joint venture transaction. 4. The year ended December 31, 2019 amount represents gains associated with the extinguishment of a mortgage loan due to the transfer of an owned property to the lender in satisfaction of the property's mortgage loan. The three months ended December 31, 2018 amount represents a gain related to the planned extinguishment of debt resulting from the unwinding of a New Market Tax Credit ("NMTC") structure at one of the company's owned properties. The year ended December 31, 2018 amount represents the gain discussed previously, offset by losses associated with the early extinguishment of mortgage loans due to real estate disposition transactions, including the sale of partial ownership interests in properties. Such costs are excluded from gains from dispositions of real estate reported in accordance with GAAP. 5. Represents a non-cash impairment charge for an intangible asset related to a property tax incentive arrangement at one owned property. 6. Represents a gain related to cash proceeds received from a litigation settlement. 7. Represents FFO for an owned property that was transferred to the lender in July 2019 in settlement of the property's mortgage loan. S-5


 
Owned Properties Results of Operations 1 ($ in thousands) Three Months Ended December 31, Year Ended December 31, 2019 2018 $ Change % Change 2019 2018 $ Change % Change Owned properties revenues Same store properties $ 209,011 $ 204,651 $ 4,360 2.1% $ 791,480 $ 770,510 $ 20,970 2.7% New properties 29,174 18,766 10,408 78,290 28,360 49,930 Sold and held for sale properties 2 1,612 3,998 (2,386) 10,939 23,100 (12,161) Total revenues 3 4 $ 239,797 $ 227,415 $ 12,382 5.4% $ 880,709 $ 821,970 $ 58,739 7.1% Owned properties operating expenses Same store properties 5 $ 85,308 $ 82,517 $ 2,791 3.4% $ 353,944 $ 344,509 $ 9,435 2.7% New properties 9,755 5,112 4,643 30,557 10,250 20,307 Other 6 128 158 (30) 338 719 (381) Sold and held for sale properties 2 7 705 1,975 (1,270) 5,825 10,894 (5,069) Total operating expenses 3 $ 95,896 $ 89,762 $ 6,134 6.8% $ 390,664 $ 366,372 $ 24,292 6.6% Owned properties net operating income Same store properties $ 123,703 $ 122,134 $ 1,569 1.3% $ 437,536 $ 426,001 $ 11,535 2.7% New properties 19,419 13,654 5,765 47,733 18,110 29,623 Other 6 (128) (158) 30 (338) (719) 381 Sold and held for sale properties 2 7 907 2,023 (1,116) 5,114 12,206 (7,092) Total net operating income $ 143,901 $ 137,653 $ 6,248 4.5% $ 490,045 $ 455,598 $ 34,447 7.6% 1. Refer to page S-20 for detail of our store groupings. 2. Includes properties sold in 2018 and 2019 and one property that was transferred to the lender in July 2019 in settlement of the property's mortgage loan. 3. The company adopted new lease accounting guidance on January 1, 2019, which required the reclassification of the provision for uncollectible accounts from operating expenses to revenue starting in the first quarter 2019. To ensure comparability between periods when calculating same store and new property results of operations, the reclassification has also been made for the prior year. See page S-3 for the total amounts reclassified from operating expenses to revenue for all properties for both periods presented. 4. Includes revenues that are reflected as Resident Services Revenue on the accompanying consolidated statements of comprehensive income. 5. Refer to page S-7 for detail of same store operating expenses. 6. Includes transaction costs and recurring professional fees related to the formation and operation of the ACC / Allianz joint venture that are included in owned properties operating expenses in the consolidated statements of comprehensive income (refer to page S-3). 7. Does not include the allocation of payroll and other administrative costs related to corporate management and oversight. S-6


 
Same Store Owned Properties Operating Expenses 1 2 ($ in thousands, except per bed amounts) Three Months Ended December 31, 2019 2018 % Change % of Total % of Total From Prior Operating Operating Total Per Bed Year Expenses Total Per Bed Expenses Property taxes $ 20,365 $ 236 3.3% 24% $ 19,723 $ 229 25% General & administrative and other 3 19,125 222 6.1% 22% 18,025 209 22% Utilities 18,623 216 1.3% 22% 18,393 214 22% Payroll 16,450 192 8.5% 19% 15,165 176 18% Repairs and maintenance 5,057 59 (11.5%) 6% 5,714 66 7% Marketing 3,547 41 1.5% 4% 3,494 41 4% Insurance 2,141 25 6.9% 3% 2,003 23 2% Total same store owned operating expenses 3 $ 85,308 $ 991 3.4 % 100% $ 82,517 $ 958 100% Same store owned beds 86,111 Year Ended December 31, 2019 2018 % Change % of Total % of Total From Prior Operating Operating Total Per Bed Year Expenses Total Per Bed Expenses Property taxes $ 83,180 $ 966 3.8% 24% $ 80,151 $ 931 23% General & administrative and other 3 72,636 844 2.8% 21% 70,636 820 21% Utilities 71,015 824 (2.4%) 20% 72,738 845 21% Payroll 68,967 801 4.8% 19% 65,792 764 19% Repairs and maintenance 34,202 397 2.5% 10% 33,384 388 10% Marketing 15,739 183 12.9% 4% 13,946 162 4% Insurance 8,205 95 4.4% 2% 7,862 91 2% Total same store owned operating expenses 3 $ 353,944 $ 4,110 2.7 % 100% $ 344,509 $ 4,001 100% Same store owned beds 86,111 1. Refer to the definition of operating expenses on page S-22 for a detailed description of items included in the various expense categories. 2. Refer to page S-20 for detail of our same store groupings. 3. The company adopted new lease accounting guidance on January 1, 2019, which required the reclassification of the provision for uncollectible accounts from operating expenses to revenue starting in the first quarter 2019. To ensure comparability between periods when calculating same store operating expenses, the reclassification has also been made for the prior year. S-7


 
Seasonality of Operations 1 ($ in thousands, except per bed amounts) Three Months Ended Total/Weighted Average- December 31, 2018 March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Last 12 Months 2019 Same Store Properties Average number of owned beds 86,111 86,111 86,111 86,111 86,111 86,111 Average physical occupancy for the quarter 97.3% 96.9% 90.6% 90.9% 97.5% 94.0% Rental revenue per occupied bed per month 2 $ 764 $ 760 $ 743 $ 746 $ 777 $ 757 Rental revenue $ 192,071 $ 190,163 $ 173,862 $ 175,233 $ 195,593 $ 734,851 Other income 3 4 12,580 12,816 14,014 16,381 13,418 56,629 Total revenue $ 204,651 $ 202,979 $ 187,876 $ 191,614 $ 209,011 $ 791,480 Property operating expenses 4 82,517 83,826 83,179 101,631 85,308 353,944 Net operating income $ 122,134 $ 119,153 $ 104,697 $ 89,983 $ 123,703 $ 437,536 Operating margin 59.7% 58.7% 55.7% 47.0% 59.2% 55.3% 2019 New Properties Average number of owned beds 6,985 6,985 6,985 8,417 10,144 8,133 Average physical occupancy for the quarter 96.9% 97.6% 65.4% 70.5% 97.4% 83.6% Rental revenue per occupied bed per month 2 $ 889 $ 878 $ 862 $ 907 $ 949 $ 907 Rental revenue $ 18,055 $ 17,960 $ 11,808 $ 16,155 $ 28,140 $ 74,063 Other income 3 4 711 598 951 1,644 1,034 4,227 Total revenue $ 18,766 $ 18,558 $ 12,759 $ 17,799 $ 29,174 $ 78,290 Property operating expenses 4 5,112 6,122 5,787 8,893 9,755 30,557 Net operating income $ 13,654 $ 12,436 $ 6,972 $ 8,906 $ 19,419 $ 47,733 Operating margin 72.8% 67.0% 54.6% 50.0% 66.6% 61.0% ALL PROPERTIES Average number of owned beds 93,096 93,096 93,096 94,528 96,255 94,244 Average physical occupancy for the quarter 97.2% 97.0% 88.8% 89.1% 97.5% 93.1% Rental revenue per occupied bed per month 2 $ 774 $ 768 $ 749 $ 757 $ 795 $ 768 Rental revenue $ 210,126 $ 208,123 $ 185,670 $ 191,388 $ 223,733 $ 808,914 Other income 3 4 13,291 13,414 14,965 18,025 14,452 60,856 Total revenue $ 223,417 $ 221,537 $ 200,635 $ 209,413 $ 238,185 $ 869,770 Property operating expenses 4 87,629 89,948 88,966 110,524 95,063 384,501 Net operating income $ 135,788 $ 131,589 $ 111,669 $ 98,889 $ 143,122 $ 485,269 Operating margin 60.8% 59.4% 55.7% 47.2% 60.1% 55.8% Sold, held for sale properties and other 5 Total revenue $ 3,998 $ 3,664 $ 3,268 $ 2,395 $ 1,612 $ 10,939 Property operating expenses 4 2,133 2,221 1,797 1,312 833 6,163 Net operating income $ 1,865 $ 1,443 $ 1,471 $ 1,083 $ 779 $ 4,776 1. Refer to page S-20 for detail of our store groupings. 2. Rental revenue per occupied bed per month is calculated based upon our net student rental revenue earned during the respective quarter divided by average monthly occupied beds over the periods presented. 3. Other income is all income other than net student rent. This includes, but is not limited to, utility income, damages, parking income, summer conference rent, application and administration fees, income from retail tenants, and the provision for uncollectible accounts reclassified from expenses to revenue as part of the adoption of the new lease accounting guidance on January 1, 2019. 4. The company adopted new lease accounting guidance on January 1, 2019, which required the reclassification of the provision for uncollectible accounts from operating expenses to revenue starting in the first quarter of 2019. To ensure comparability between periods when calculating same store and new property results of operations, the reclassification has also been made for the prior year. See page S-3 for the total amounts reclassified from operating expenses to revenue for all properties for both periods presented. 5. Includes properties sold during the periods presented and costs related to the formation and operation of the ACC / Allianz joint venture as noted on page S-6. S-8


 
Seasonality of Operations - Build-up to 2020 Same Store Grouping 1 ($ in thousands, except per bed amounts) Three Months Ended Total/Weighted Average- March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Last 12 Months 2019 Same Store Properties 2 Average number of owned beds 85,210 85,210 85,210 85,210 85,210 Average physical occupancy for the quarter 96.9% 90.6% 90.8% 97.5% 94.0% Rental revenue per occupied bed per month $ 757 $ 739 $ 743 $ 774 753 Rental revenue $ 187,509 $ 171,214 $ 172,538 $ 192,858 $ 724,119 Other income 3 12,385 13,648 15,895 12,879 54,807 Total revenue $ 199,894 $ 184,862 $ 188,433 $ 205,737 $ 778,926 Property operating expenses 82,514 81,906 100,233 84,077 348,730 Net operating income $ 117,380 $ 102,956 $ 88,200 $ 121,660 $ 430,196 Operating margin 58.7% 55.7% 46.8% 59.1% 55.2% 2020 New Same Store Properties 4 Average number of owned beds 6,985 6,985 6,985 6,985 6,985 Average physical occupancy for the quarter 97.6% 65.4% 65.5% 96.7% 81.3% Rental revenue per occupied bed per month $ 878 $ 862 $ 874 $ 895 $ 877 Rental revenue 17,960 11,809 11,991 18,131 59,891 Other income 3 377 729 1,140 460 2,706 Total revenue $ 18,337 $ 12,538 $ 13,131 $ 18,591 $ 62,597 Property operating expenses 5,606 5,137 6,293 6,160 23,196 Net operating income $ 12,731 $ 7,401 $ 6,838 $ 12,431 $ 39,401 Operating margin 69.4% 59.0% 52.1% 66.9% 62.9% 2020 SAME STORE PROPERTIES Average number of owned beds 92,195 92,195 92,195 92,195 92,195 Average physical occupancy for the quarter 96.9% 88.7% 88.9% 97.4% 93.0% Rental revenue per occupied bed per month $ 767 $ 746 $ 750 $ 783 $ 762 Rental revenue 205,469 183,023 184,529 210,989 784,010 Other income 3 12,762 14,377 17,035 13,339 57,513 Total revenue $ 218,231 $ 197,400 $ 201,564 $ 224,328 $ 841,523 Property operating expenses 88,120 87,043 106,526 90,237 371,926 Net operating income $ 130,111 $ 110,357 $ 95,038 $ 134,091 $ 469,597 Operating margin 59.6% 55.9% 47.2% 59.8% 55.8% 1. Refer to page S-19 for detail of same store groupings. 2. This section presents operating results for the 2019 same store properties from page S-8 with the exclusion of a 2019 same store property containing 901 beds anticipated to be sold during the first quarter of 2020. 3. Other income is all income other than Net Student Rent. This includes, but is not limited to, utility income, damages, parking income, summer conference rent, application and administration fees, income from retail tenants, and the provision for uncollectible accounts reclassified from expenses to revenue as part of the adoption of the new lease accounting guidance on January 1, 2019. 4. Includes 10 properties opened in 2018 that will become part of the same store grouping for 2020. S-9


 
Investment Update ($ in thousands) DISPOSITIONS Extinguished Project Location Primary University Served Beds Closing Date Sales Price Mortgage Debt College Club Townhomes Tallahassee, FL Florida A&M University 544 May 17, 2019 $ 9,450 $ — Blanton Common 1 Valdosta, GA Valdosta State University 860 July 2, 2019 27,400 27,400 Landmark Ann Arbor, MI University of Michigan 606 November 25, 2019 100,000 — 2,010 $ 136,850 $ 27,400 1. In July 2019, Blanton Common was transferred to the lender in settlement of the property's mortgage loan. The sales price represents the principal amount of mortgage debt extinguished as a result of the transaction. S-10


 
Owned Development Update ($ in thousands) OWNED DEVELOPMENT PROJECTS UNDER CONSTRUCTION 1 Project Estimated Total Costs Incurred as Scheduled Project Location Primary University / Market Served Type Beds Project Cost 2 of December 31, 2019 ³ Occupancy Disney College Program Phases I-II 4 5 Orlando, FL Walt Disney World® Resort ACE 1,627 $ 108,500 $ 81,517 May & Aug 2020 Currie Hall Phase II Los Angeles, CA Univ. of Southern California ACE 272 42,000 22,837 August 2020 Holloway Residences San Francisco, CA San Francisco State Univ. ACE 584 129,200 89,983 August 2020 SUBTOTAL - 2020 DELIVERIES 2,483 $ 279,700 $ 194,337 Disney College Program Phases III-V 4 6 Orlando, FL Walt Disney World® Resort ACE 3,369 $ 190,400 $ 102,366 Jan, May & Aug 2021 SUBTOTAL - 2021 DELIVERIES 3,369 $ 190,400 $ 102,366 Disney College Program Phases VI-VIII 4 7 Orlando, FL Walt Disney World® Resort ACE 3,235 $ 193,000 $ 27,448 Jan, May & Aug 2022 SUBTOTAL - 2022 DELIVERIES 3,235 $ 193,000 $ 27,448 Disney College Program Phases IX-X 4 8 Orlando, FL Walt Disney World® Resort ACE 2,209 $ 122,700 $ 15,298 Jan & May 2023 SUBTOTAL - 2023 DELIVERIES 2,209 $ 122,700 $ 15,298 1. Does not include land parcels in nine university markets totaling $55.9 million. 2. In certain instances at ACE properties, the company agrees to construct spaces within the property that will ultimately be owned, managed, and funded by the universities. Such spaces include but are not limited to dining, childcare, retail, academic, and office facilities. Estimated Project Cost excludes the costs of the construction of such facilities, as they will be reimbursed by the universities. 3. Includes $336.5 million in construction in progress "CIP" and excludes $5.1 million of CIP balances related to ongoing renovation projects at operating properties. Total consolidated CIP as of December 31, 2019 was $341.6 million. 4. The company executed two ground lease agreements with Walt Disney World® Resort to develop, own, and manage housing for college students participating in the Disney student internship program (the “Disney College Program”). The development will be delivered in multiple phases from 2020-2023. 5. Phase I, with estimated project costs of $61.6 million and 778 beds, is scheduled for occupancy in May 2020. Phase II, with estimated project costs of $46.9 million and 849 beds, is scheduled for occupancy in August 2020. 6. Phase III, with estimated project costs of $54.4 million and 984 beds, is scheduled for occupancy in January 2021. Phase IV, with estimated project costs of $84.5 million and 1,521 beds, is scheduled for occupancy in May 2021. Phase V, with estimated project costs of $51.5 million and 864 beds, is scheduled for occupancy in August 2021. 7. Phase VI, with estimated project costs of $61.3 million and 867 beds, is scheduled for occupancy in January 2022. Phase VII, with estimated project costs of $90.3 million and 1,632 beds, is scheduled for occupancy in May 2022. Phase VIII, with estimated project costs of $41.4 million and 736 beds, is scheduled for occupancy in August 2022. 8. Phase IX, with estimated project costs of $81.5 million and 1,473 beds, is scheduled for occupancy in January 2023. Phase X, with estimated project costs of $41.2 million and 736 beds, is scheduled for occupancy in May 2023. S-11


 
Presale Development Update 1 ($ in thousands) RECENTLY COMPLETED PRESALE DEVELOPMENT PROJECTS Amount Funded Remaining Project Purchase as of Purchase Price Actual Project Location Primary University Served Type Beds Price 2 December 31, 2019 3 to be Funded Occupancy 959 Franklin 4 Eugene, OR University of Oregon Off-campus 443 $ 73,800 $ 73,800 $ — September 2019 1. Under the terms of a presale transaction, the company is obligated to purchase the property from the third-party developer as long as certain construction completion deadlines and other closing conditions are met. The company is responsible for leasing, management, and initial operations of the project while the third-party developer retains development risk during the construction period. In accordance with accounting guidance, the company includes presale properties in its consolidated financial statements upon execution of the presale agreement with the developer. 2. Includes the contractual purchase price and ACC-elected upgrades. 3. Includes ACC's investment funded to date, earnest money and mezzanine financing, if applicable. 4. The company executed the presale agreement with the developer in March 2018, at which time it provided $15.6 million of mezzanine financing to the project. The company purchased the remaining ownership interest from the developer in November 2019. S-12


 
Third-Party Development Update ($ in thousands) Three Months Ended December 31, Twelve Months Ended December 31, 2019 2018 $ Change 2019 2018 $ Change Development services revenue $ 662 $ 3,398 $ (2,736) $ 13,051 $ 7,281 $ 5,770 % of total revenue 0.3% 1.4% 1.4% 0.8% CONTRACTED PROJECTS IN PROGRESS Fees Earned Fees Remaining Fees as of Earned in as of Scheduled Project Location Primary University Served Beds Total Fees December 31, 2019 Current Year December 31, 2019 Completion Prairie View A&M University Phase IX Prairie View, TX Prairie View A&M University 540 $ 2,500 $ 1,732 $ 1,732 $ 768 August 2020 Dundee Residence Hall and Glasgow Riverside, CA University of California, Riverside 820 5,000 3,580 946 1,420 August 2020 Dining Hall University of California - Riverside North Riverside, CA University of California, Riverside 1,502 6,700 3,834 3,834 2,866 September 2021 District Phase I 2,862 $ 14,200 $ 9,146 $ 6,512 $ 5,054 ON-CAMPUS AWARD PIPELINE 1 Anticipated Anticipated Targeted Estimated Project Location Financing Structure Commencement Completion Fees Georgetown University - Capitol Campus Washington, D.C. Third-party Q3 2020 Summer 2022 $3,000 Housing Upper Hearst Development for the Berkeley, CA Third-party Q3 2020 Summer 2022 $3,000 Goldman School of Public Policy 2 University of California Irvine Phase V Irvine, CA Third-party Q3 2020 Summer 2022 $5,000 Concordia University Phase II Austin, TX Third-party Q4 2020 Summer 2022 $1,000 Northeastern University - Phase II Boston, MA ACE Q1 / Q2 2021 Fall 2023 N/A Princeton University Lake Campus Princeton, NJ TBD TBD TBD TBD Graduate Housing University of California Berkeley Master Berkeley, CA TBD TBD TBD TBD Development 3 University of California Riverside Master Riverside, CA Third-party TBD TBD TBD Development 3 West Virginia University Master Morgantown, WV TBD TBD TBD TBD Development 3 1. These awards relate to speculative development projects that are subject to final determination of feasibility, negotiation, final award, procurement rules and other applicable law, execution and closing of definitive agreements on terms acceptable to the company, and fluctuations in the construction and financing markets. Anticipated commencement and fees are dependent upon the availability of project financing, which is affected by current capital market conditions. 2. Anticipated commencement and targeted completion dates may be affected by the outcome of a lawsuit filed by the city of Berkeley against the University. 3. These projects include multiple phases to be completed over several years. The full scope, transaction structure, feasibility, fees, and timing will be negotiated. S-13


 
Management Services Update ($ in thousands) Three Months Ended December 31, Year Ended December 31, 2019 2018 $ Change 2019 2018 $ Change Management services revenue $ 3,818 $ 2,503 $ 1,315 $ 12,936 $ 9,814 $ 3,122 % of total revenue 1.5% 1.0% 1.4% 1.1% NEW / PENDING MANAGEMENT CONTRACTS Actual or Approximate Stabilized Anticipated Project Location Primary University / Market Served Beds Annual Fees 1 Commencement Walt Disney World® College Program 2 Orlando, FL Walt Disney World® Resort 7,870 $ 250 April 2019 The Academic & Residential Complex Chicago, IL University of Illinois, Chicago 548 240 August 2019 Tubman Laws Hall Dover, DE Delaware State University 620 220 August 2019 Campus1 - Montreal 3 Montreal, Quebec McGill University 886 250 September 2019 Plaza Verde Irvine, CA University of California, Irvine 1,441 630 September 2019 Nevada State College 4 Henderson, NV Nevada State College 342 100 August 2020 Prairie View A&M University Phase IX Prairie View, TX Prairie View A&M University 540 190 August 2020 Dundee Residence Hall and Glasgow Dining Hall Riverside, CA University of California, Riverside 820 440 September 2020 University of California, Riverside - North District Riverside, CA University of California, Riverside 1,502 540 September 2021 14,569 $ 2,860 DISCONTINUED MANAGEMENT CONTRACTS 2019 Fee Contribution Prior to Project Location Primary University / Market Served Beds Termination Discontinued As Of Collegeview Commons Ontario, Canada Durham College 974 $ 24 March 2019 MyRez at Lester Ontario, Canada University of Waterloo 455 37 April 2019 The Rixey Arlington, VA Marymount University 531 190 February 2020 1,960 $ 251 1. Stabilized annual fees are dependent upon the achievement of anticipated occupancy levels. 2. As the project's facilities manager, the company is responsible for the operations and maintenance of the project. Because of the company’s role in funding payroll costs for on-site personnel and certain other operating costs at the properties, accounting guidance requires the management fee for this project to be recorded on a gross basis in the company’s consolidated financial statements. Accordingly, both management services revenue and third-party management services expenses in the accompanying consolidated statements of comprehensive income for 2019 include approximately $3.3 million in reimbursed payroll and other operating costs. The stabilized annual fee noted above does not include such reimbursed costs and represents the net management fee anticipated to be earned by the company. 3. The stabilized annual fee amount does not include an initial operations fee of $105,000 earned from July 2018 through August 2019. 4. The stabilized annual fee amount does not include an initial operations fee of $140,000 earned from May 2019 through July 2020. S-14


 
Capital Structure as of December 31, 2019 1 ($ in millions, except per share data) Market Capitalization & Unsecured Notes Covenants Debt Maturity Schedule Total Debt ² $ 3,408 Total Equity Market Value ³ 6,531 Total Market Capitalization 9,939 Debt to Total Market Capitalization 34.3% Net Debt to EBITDA ⁴ 6.7x Total Asset Value ⁵ $ 8,573 Unencumbered Asset Value 7,075 Unencumbered Asset Value to Total Asset Value 82.5% Requirement Current Ratio Total Debt to Total Asset Value ≤ 60% 39.8% Secured Debt to Total Asset Value ≤ 40% 9.1% Unencumbered Asset Value to Unsecured Debt > 150% 269.5% Interest Coverage ⁴ > 1.5x 3.8x Weighted Average Principal Average Term To Outstanding ² Interest Rate Maturity Mortgage Loans ⁶ $ 693 4.5% ⁷ 5.3 Yrs Unsecured Revolving Credit Facility 426 3.0% 2.2 Yrs Unsecured Term Loan 200 2.5% 2.5 Yrs Unsecured Notes 2,000 3.7% 8 4.6 Yrs 8 On-Campus Participating Properties 89 4.8% 13.2 Yrs Total/Weighted Average $ 3,408 3.7% 8 4.5 Yrs 8 Variable Rate Debt as % of Total Debt 9 12.6% Weighted Average Interest Rate Of Debt Maturing Each Year Fixed Rate Debt 3.5% 5.4% 2.9% 3.8% 4.2% N/A 3.7% 3.6% 4.1% 3.8% Total Debt 3.5% 5.2% 2.9% 3.9% 4.2% 7.6% 3.7% 3.6% 4.1% 3.8% 1. Refer to pages S-21 and S-22 for detailed definitions of terms appearing on this page. 2. Excludes net unamortized debt premiums related to mortgage loans assumed in connection with acquisitions of $6.4 million, unamortized original issue discount on unsecured notes of $2.3 million, and unamortized deferred financing costs of $14.7 million. 3. Based on share price of $47.03 and fully diluted share count of 138,875,809 as of December 31, 2019. Assumes conversion of 503,717 common and preferred Operating Partnership units and 967,340 unvested restricted stock awards. 4. Refer to calculations on page S-16, including a reconciliation to net income and interest expense, the most directly comparable GAAP measures. 5. Excludes accumulated depreciation of $1.5 billion, receivables and intangible assets, net of accumulated amortization, of $62.6 million, and lease-related right of use assets of $460.9 million associated with the adoption of new lease accounting guidance on January 1, 2019. 6. Includes $330.0 million of mortgage debt related to the ACC / Allianz joint venture of which the company has a 55% interest. 7. Including the amortization of net debt premiums related to mortgage loans assumed in connection with property acquisitions, the effective interest rate for fixed rate mortgage loans is 3.8%. 8. In January 2020, the Company issued $400.0 million of 10-year unsecured notes at a yield of 2.872% that mature in 2030.  Proceeds from the issuance were used to prepay $400.0 million of unsecured notes with a yield of 3.39% percent that were scheduled to mature in October 2020. The issuance and redemption reduced the weighted average interest rate on unsecured notes and total debt from 3.7% and 3.7% to 3.6% and 3.7%, respectively, and also lengthened the average term to maturity on unsecured notes and total debt from 4.6 years and 4.5 years to 6.5 years and 5.6 years, respectively. 9. The company's variable rate debt consists of the unsecured revolving credit facility and $3.1 million of mortgage debt at one of our on-campus participating properties. Remaining variable rate debt has been swapped to a fixed interest rate. S-15


 
Interest Coverage 1 ($ in thousands) Three Months Ended March 31, June 30, September 30, December 31, Last Twelve 2019 2019 2019 2019 Months Net income attributable to ACC, Inc. and Subsidiaries common stockholders $ 29,640 $ 10,386 $ 20,223 $ 24,720 $ 84,969 Net income (loss) attributable to noncontrolling interests 1,728 (176) (887) 1,128 1,793 Interest expense 27,061 27,068 28,303 28,855 111,287 Income tax provision 364 314 305 524 1,507 Depreciation and amortization 68,755 68,815 68,930 68,546 275,046 Amortization of deferred financing costs 1,132 1,218 1,315 1,347 5,012 Share-based compensation 3,765 3,745 3,104 3,003 13,617 Provision for impairment 3,201 — — 14,013 17,214 Gain on extinguishment of debt, net — — (20,992) — (20,992) Loss (gain) from disposition of real estate — 282 — (229) 53 Earnings Before Interest, Taxes, Depreciation, and Amortization ("EBITDA") $ 135,646 $ 111,652 $ 100,301 $ 141,907 $ 489,506 Pro-forma adjustments to EBITDA 2 10,806 Adjusted EBITDA $ 500,312 Interest Expense from consolidated statement of comprehensive income $ 27,061 $ 27,068 $ 28,303 $ 28,855 $ 111,287 Amortization of mortgage debt premiums/discounts 1,246 1,246 1,212 1,233 4,937 Capitalized interest 2,739 3,623 3,072 2,669 12,103 Change in accrued interest payable (7,300) 5,060 (2,013) 2,942 (1,311) Cash Interest Expense $ 23,746 $ 36,997 $ 30,574 $ 35,699 $ 127,016 Pro-forma adjustments to Cash Interest Expense 2 4,385 Adjusted Interest Expense $ 131,401 Interest Coverage 3.8x 1. Refer to pages S-21 and S-22 for detailed definitions of terms appearing on this page. 2. Adjustment to reflect all acquisitions, development deliveries, dispositions, debt repayments, and debt refinancings as if such transactions had occurred on the first day of the 12 month period presented. S-16


 
Capital Allocation – Long Term Funding Plan (2020 - 2023) ($ in millions) Sources and Uses for Development - As of December 31, 2019 Estimated Project Total Costs Remaining Estimated Capital Uses: Cost Incurred Capital Needs Development Pipeline 1: 2020 Developments Underway $ 171 $ 113 $ 58 Disney College Program Housing: Phases I-II (2020 deliveries) 109 82 27 Phases III-V (2021 deliveries) 190 102 88 Phases VI-VIII (2022 deliveries) 193 27 166 Phases IX-X (2023 deliveries) 123 15 108 Core Spaces / DRW Portfolio Transaction: Presale Developments Funding 2 69 — 69 Total $ 855 $ 339 $ 516 Estimated Sources through 2023: Capital Sources Cash and Cash Equivalents as of December 31, 2019 $ 55 Estimated Cash Flow Available for Investment - through 2023 3 257 Anticipated Debt (Repayment) / Funding - through 2023 4 (321) to (121) Anticipated Capital Recycling and/or Equity Funding - through 2023 4 525 to 325 Total $ 516 Selected Credit Metrics 5 Credit Metric: December 31, 2019 Pro Forma 6 Total Debt to Total Asset Value 39.8% 34.4% - 38.0% Net Debt to EBITDA 7 6.7x 5.6x - 6.1x Note: This analysis demonstrates anticipated funding for the developments currently committed, underway, or with expected starts in the current year. As future developments commence, they are expected to be funded via additional dispositions, joint ventures, free cash available for investment, and capital market transactions. 1. Includes owned development projects under construction and management’s Estimated Project Cost for future development deliveries that are expected to commence construction during the current year, as disclosed on page S-11. 2. Reflects the exercise of the option to purchase the remaining interest in the joint ventures with Core Spaces / DRW Real Estate Investments. 3. Available cash flow is derived from disclosures in our 2018 Form 10-K and is calculated as net cash provided by operating activities of $376.6 million, excluding changes in working capital of $29.8 million, less dividend payments of $250.5 million, less principal payments on debt of $11.7 million, less recurring capital expenditures of $20.3 million. Calculation results in available cash flow for investment in 2018 of $64.3 million, which is then annualized over the remaining 16 quarters through the end of 2023. 4. Reflects the company's current anticipated capital sources to fund committed developments through 2023. The actual mix of capital sources may vary based on prevailing capital market conditions and the company's balance sheet management strategy. 5. Refer to definitions outlined on pages S-21 and S-22 for detailed definitions of terms appearing on this page. 6. Ratios represent the pro forma impact of development deliveries and funding alternatives assumed in the Sources and Uses table. The lower end of the pro forma leverage ranges assumes remaining capital needs in excess of debt are funded with equity, while the higher end assumes remaining needs in excess of debt are funded with dispositions. Actual ratios will vary based on the timing of construction funding, future cash flow available for investment, and the ultimate mix of sources from debt, equity, joint ventures, or dispositions. 7. Refer to page S-16 for a reconciliation of EBITDA to net income, the most directly comparable GAAP measure. S-17


 
Outlook - Summary (Full Year and Q1 2020) 1 ($ in thousands, except share and per share data) 2020 Guidance Q1 2020 Guidance Low High Low High Net income2 $ 82,800 $ 96,300 $ 29,500 $ 31,500 Noncontrolling interests' share of net income — — 500 500 Joint Venture ("JV") partners' share of net loss (income) 400 400 (400) (400) JV partners' share of depreciation and amortization (7,600) (7,600) (1,900) (1,900) JV partners' share of funds from operations (7,200) (7,200) (2,300) (2,300) Total depreciation and amortization 268,300 268,300 66,400 66,400 Corporate depreciation (3,900) (3,900) (1,000) (1,000) FFO $ 340,000 $ 353,500 $ 93,100 $ 95,100 Elimination of operations from on-campus participating properties ("OCPP") (15,000) (14,600) (5,600) (5,500) Contribution from OCPPs 5,300 5,900 1,400 1,600 Elimination of loss from early extinguishment of debt3 4,800 4,800 4,800 4,800 Funds from operations - modified ("FFOM") $ 335,100 $ 349,600 $ 93,700 $ 96,000 Net income per share - diluted $ 0.59 $ 0.69 $ 0.21 $ 0.23 FFO per share - diluted $ 2.44 $ 2.54 $ 0.67 $ 0.68 FFOM per share - diluted $ 2.41 $ 2.51 $ 0.67 $ 0.69 Weighted-average common shares outstanding - diluted 139,228,200 139,228,200 139,086,700 139,086,700 1. The company believes that the financial results for the fiscal year ending December 31, 2020 may be affected by, among other factors: • national and regional economic trends and events; • the success of leasing the company's owned properties for the 2020-2021 academic year; • the timing and amount of any acquisitions, dispositions or joint venture activity; • interest rate risk; • the timing of commencement and completion of construction on owned development projects; • the ability of the company to be awarded and the timing of the commencement of construction on third-party development projects; • university enrollment, funding and policy trends; • the ability of the company to earn third-party management revenues; • the amount of income recognized by the taxable REIT subsidiaries and any corresponding income tax expense; • the ability of the company to integrate any acquired properties; • the outcome of legal proceedings arising in the normal course of business; and • the finalization of property tax rates and assessed values in certain jurisdictions. 2. Does not include any potential gain or loss on sale from anticipated dispositions, as such will be eliminated for the purposes of calculating FFOM. 3. Represents costs related to the prepayment of the company's $400 million 3.350% unsecured notes that were previously due to mature in October 2020 using proceeds from the company's $400 million 10-year unsecured notes issued in January 2020. S-18


 
2020 Outlook - Detail ($ in thousands, except share and per share data) FFO Guidance Assumptions & Other Year Ended December 31, 2020 Low High Owned properties ¹ 2020 same store properties Same store revenue $ 853,100 $ 858,100 Assumes academic year 2020/2021 opening same store rental revenue growth of 1.5% - 3-0%. % growth 1.4 % 2.0 % Same store operating expenses (383,600) (380,600) % growth 3.2 % 2.4 % Same store net operating income ("NOI") $ 469,500 $ 477,500 % growth — % 1.7 % 2020 new properties NOI $ 32,500 $ 33,700 2020 NOI contribution from dispositions and other $ 1,000 $ 1,000 Includes NOI contribution from an anticipated $148.0 million disposition during the first quarter and recurring professional fees related to the operation of the ACC/Allianz joint venture. Total owned properties NOI $ 503,000 $ 512,200 Third-party development services revenue $ 8,000 $ 13,100 Third-party management services revenue ² $ 15,300 $ 16,100 Third-party development and mgmt. services expenses ² $ (22,200) $ (22,600) General and administrative expenses $ (36,500) $ (37,300) Ground/facility leases expense $ (17,400) $ (17,800) Less: OCPP ground/facility leases expense $ 3,300 $ 3,700 Interest income ³ $ 1,900 $ 1,900 Interest expense $ (110,700) $ (110,700) Net of $12.8 million of capitalized interest. Less: OCPP interest expense $ 4,100 $ 4,100 Amortization of deferred financing costs ³ $ (4,800) $ (4,800) Corporate depreciation ⁴ $ (3,900) $ (3,900) OCPP overhead $ (1,600) $ (1,600) Income tax provision $ (1,500) $ (1,500) JV partners' share of net loss $ 400 $ 400 For the purposes of calculating NAV, the company excludes $13.8 million of NOI and $148.5 million of mortgage debt related to consolidated joint venture partners' share of NOI and any mortgage debt. JV partners' share of depreciation and amortization $ (7,600) $ (7,600) Contribution from OCPP ⁵ $ 5,300 $ 5,900 FFOM per share - diluted $ 2.41 $ 2.51 1. Refer to page S-20 for detail of the 2020 same store and new property groupings. 2. Includes $4.6 million in reimbursed payroll and other operating costs as described on page S-14. 3. Excluding on-campus participating properties ("OCCPs"). 4. Represents depreciation expense not added back in the calculation of FFO as per the NAREIT definition of FFO. 5. Includes the company's 50% share of OCPP net cash flow and management and development fees received, as per the definition of FFOM on page S-21. S-19


 
Detail of Property Groupings As of December 31, 2019 2019 Grouping 2020 Grouping Same Store Properties New Properties Same Store Properties New Properties # of Design # of Design # of Design # of Design Properties Beds Properties Beds Properties Beds Properties Beds Properties Purchased or Developed Prior to January 1, 2018 143 86,111 143 86,111 Property Sold/ Held for Sale ¹ (1) (901) 2018 Development Deliveries 10 6,985 10 6,985 2019 Development Deliveries 5 3,159 5 3,159 2020 Development Deliveries 3 2,483 3 2,483 2021 Development Deliveries ² — 3,369 — 3,369 2022 Development Deliveries ² — 3,235 — 3,235 2023 Development Deliveries ² — 2,209 — 2,209 Total Owned Properties 143 86,111 18 21,440 152 92,195 8 14,455 Grand Total # of Owned Properties (All Groupings) 161 Grand Total Owned Design Beds (All Groupings) 107,551 Note on Property Portfolio: When disclosing our number of properties and design beds as of a certain date, we include all properties that are owned and operating as of that date, as well as properties that are under construction and anticipated to open for operations in future years. Properties that are in our development pipeline but have not yet commenced construction are not included. 2019: The 2019 same store grouping represents properties owned and operating for both of the entire calendar years ended December 31, 2019 and 2018. This same store grouping will be used for purposes of presenting our 2019 same store operating results. 2020: The 2020 same store grouping represents properties owned and operating for both of the entire calendar years ended December 31, 2020 and 2019. This same store grouping will be used for purposes of presenting our 2020 same store operating results. 1. Represents a 2019 same store property anticipated to be sold during the first quarter of 2020. 2. The Disney College Program project will be delivered in multiple phases over several years with initial deliveries expected in 2020 and full development completion in 2023. All phases are counted as one property in the table above. S-20


 
Definitions ACE The company’s American Campus Equity program, whereby the company enters into long-term ground/facility lease agreements with Universities to invest our capital and to develop, own, and operate on-campus student housing communities. Properties under this structure are considered to be owned and are included in the company's consolidated financial statements. Adjusted EBITDA* EBITDA, including pro forma adjustments to reflect acquisitions, development deliveries, and dispositions as if such transactions had occurred on the first day of the 12-month period presented. Adjusted Interest Expense* Interest Expense, including pro forma adjustments to reflect acquisitions, development deliveries, dispositions, debt repayments, and debt refinancings as if such transactions had occurred on the first day of the 12-month period presented. Cash Cash and cash equivalents, determined on a consolidated basis in accordance with GAAP. Cash Interest Expense* Consolidated interest expense calculated in accordance with GAAP, plus amounts which have been deducted and minus amounts which have been added for, without duplication: (i) the amortization of mark-to-market premiums/discounts on mortgage loans assumed in connection with acquisitions; (ii) capitalized interest; and (iii) the change in accrued interest during the period presented. Design Beds Total beds based on the original property design, generally as specified in the construction documents. EBITDA* Consolidated net income calculated in accordance with GAAP, plus amounts which have been deducted and minus amounts which have been added for, without duplication: (i) interest expense; (ii) provision for income taxes; (iii) depreciation, amortization and all other non- cash items; (iv) provision for gains and losses; (v) noncontrolling interests; and (vi) extraordinary and other non-recurring items, as we determine in good faith. Funds from Operations Determined based on the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (”FFO”) (“NAREIT”). Calculated as consolidated net income or loss attributable to common shares computed in accordance with GAAP, excluding gains or losses from depreciable operating property sales, plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Also excludes non-cash impairment charges. FFO Modified FFO modified to reflect certain adjustments related to the economic performance of our on-campus participating properties, the (”FFOM”) elimination of real estate transaction costs, and other items, as we determine in good faith, that do not reflect our core operations on a comparative basis. The company believes it is meaningful to eliminate the FFO generated from the on-campus participating properties and instead to reflect the company's 50% share of the properties' net cash flow and management and development fees received, as this measure better reflects the economic benefit derived from the company's involvement in the operation of these properties. GAAP Accounting principles generally accepted in the United States of America. Interest Coverage* Adjusted EBITDA / Adjusted Interest Expense. Net Debt* Total Debt less Cash. Net Debt to EBITDA* Net Debt divided by Adjusted EBITDA. Net Operating Income Property revenues less direct property operating expenses, excluding depreciation, but including an allocation of costs related to “NOI” corporate management and oversight. * These definitions are provided for purposes of calculating the company’s unsecured notes covenants and other key ratios. S-21


 
Definitions On-campus Participating A transaction structure whereby the company enters into long-term ground/facility lease agreements with Universities to develop, Properties construct, and operate student housing communities. Under the terms of the leases, title to the constructed facilities is held by the University/lessor and such lessor receives 50% of net cash flows, as defined, on an annual basis through the term of the lease. Operating Expenses General & administrative and other expenses include security costs, shuttle costs, and property-level general and administrative costs as well as an allocation of costs related to corporate management and oversight. Also includes acquisition integration costs, food service, and other miscellaneous expenses. Utilities expense represents gross expenses prior to any recoveries from tenants, which are reflected in owned properties revenues. Payroll expense includes payroll and related expenses for on-site personnel including general managers, maintenance staff, and leasing staff. Repairs and maintenance expense includes general maintenance costs such as interior painting, routine landscaping, pest control, fire protection, snow removal, elevator maintenance, roof and parking lot repairs, and other miscellaneous building repair costs. Also includes costs related to the annual turn process. Marketing expense includes costs related to property marketing campaigns associated with our ongoing leasing efforts. Physical Occupancy Occupied beds, including staff accommodations, divided by Design Beds. Rentable Beds Design Beds less beds used by on-site staff. Same Store Grouping Properties owned and operating for both of the entire annual periods presented, which are not conducting or planning to conduct substantial development, redevelopment, or repositioning activities, and are not classified as held for sale as of the current period-end. Includes the full operating results of properties owned through joint ventures in which the company has a controlling financial interest and which are consolidated for financial reporting purposes. Secured Debt* The portion of Total Debt that is secured by a mortgage, trust, deed of trust, deed to secure indebtedness, pledge, security interest, assignment of collateral, or any other security agreement. Total Asset Value* Undepreciated book value of real estate assets and all other assets, excluding receivables, intangibles, and right of use assets, of our consolidated subsidiaries, all determined in accordance with GAAP. Total Debt* Total consolidated debt calculated in accordance with GAAP, including finance leases and excluding mark-to-market premiums/ discounts on mortgage loans assumed in connection with acquisitions, the original issued discount on unsecured notes, and deferred financing costs. Total Equity Market Value Fully diluted common shares times the company’s stock price at period-end. Unencumbered Asset Value* The sum of (i) the undepreciated book value of real estate assets which are not subject to secured debt; and (ii) all other assets, excluding accounts receivable and intangibles, for such properties. Does not include assets of unconsolidated joint ventures. Unsecured Debt* The portion of Total Debt that is not Secured Debt. * These definitions are provided for purposes of calculating the company’s unsecured notes covenants and other key ratios. S-22


 
Investor Information Executive Management Bill Bayless Chief Executive Officer Jim Hopke President Jennifer Beese Chief Operating Officer Daniel Perry Chief Financial Officer William Talbot Chief Investment Officer Kim Voss Chief Accounting Officer Research Coverage Jacob Kilstein Argus Research Company (646) 747-5447 [email protected] Jeffery Spector / Shirley Wu Bank of America / Merrill Lynch (646) 855-1363 / (646) 855-3081 [email protected] / [email protected] Neil Malkin Capital One (571) 633-8191 [email protected] Michael Bilerman / Nick Joseph Citigroup Equity Research (212) 816-1383 / (212) 816-1909 [email protected] / [email protected] Derek Johnston / Tom Hennessy Deutsche Bank Securities, Inc. (212) 250-5683 / (212) 250-4063 [email protected] / [email protected] Steve Sakwa / Samir Khanal Evercore ISI (212) 446-9462 / (212) 888-3796 [email protected] / [email protected] Richard Skidmore Goldman Sachs & Co. (801) 741-5459 [email protected] John Pawlowski / Alan Peterson Green Street Advisors (949) 640-8780 / (949) 640-8780 [email protected] / [email protected] Aaron Hecht JMP Securities (415) 835-3963 [email protected] Anthony Paolone / Nikita Bely J.P. Morgan Securities (212) 622-6682 / (212) 622-0695 [email protected] / [email protected] Jordan Sadler / Austin Wurschmidt KeyBanc Capital Markets (917) 368-2280 / (917) 368-2311 [email protected] / [email protected] Alexander Goldfarb / Daniel Santos Piper Sandler & Co. (212) 466-7937 / (212) 466-7927 [email protected] / [email protected] Drew Babin / Alex Kubicek Robert W. Baird & Co. (610) 238-6634 / (414) 765-7311 [email protected] / [email protected] American Campus Communities, Inc. is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding American Campus Communities, Inc.'s performance made by such analysts are theirs alone and do not represent the opinions, forecasts or predictions of the company or its management. American Campus Communities, Inc. does not by its reference above or distribution imply its endorsement of or concurrence with such information, conclusions or recommendations. Corporate Headquarters Investor Relations American Campus Communities, Inc. Tel: (512) 732-1000 Ryan Dennison (512) 732-1000 12700 Hill Country Blvd., Suite T-200 Fax: (512) 732-2450 SVP, Capital Markets and Investor Relations [email protected] Austin, Texas 78738 www.americancampus.com S-23


 
Forward-looking Statements and Non-GAAP Financial Measures In addition to historical information, this supplemental package contains forward-looking statements under the applicable federal securities law. These statements are based on management’s current expectations and assumptions regarding markets in which American Campus Communities operates, operational strategies, anticipated events and trends, the economy, and other future conditions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. For discussions of some risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements, please refer to our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2018 under the heading “Risk Factors” and under the heading “Business - Forward-looking Statements” and subsequent quarterly reports on Form 10-Q. We undertake no obligation to publicly update any forward-looking statements, including our expected 2020 operating results, whether as a result of new information, future events, or otherwise. This presentation contains certain financial information not derived in accordance with United States generally accepted accounting principles (“GAAP”). These items include earnings before interest, tax, depreciation and amortization (“EBITDA”), net operating income (“NOI”), funds from operations (“FFO”) and FFO-Modified (“FFOM”). Refer to Definitions for a detailed explanation of terms appearing in the supplement. The Company presents this financial information because it considers each item an important supplemental measure of its operating performance and believes it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs. These measures should not be considered as alternatives to net income or loss computed in accordance with GAAP as an indicator of the Company's financial performance or to cash flow from operating activities computed in accordance with GAAP as an indicator of its liquidity, nor are these measures indicative of funds available to fund its cash needs, including its ability to pay dividends or make distributions.


 
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