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Section 1: 8-K (8-K)

Document
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): April 22, 2019


AMERICAN CAMPUS COMMUNITIES, INC.
AMERICAN CAMPUS COMMUNITIES OPERATING PARTNERSHIP LP
(Exact name of Registrant as specified in its Charter)
Maryland
Maryland
001-32265
333-181102-01
76-0753089
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)

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 o

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. o

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:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On April 22, 2019, American Campus Communities, Inc. (the “Company”) issued a press release (the “Earnings Release”) announcing, among other things, earnings for the quarter ended March 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 April 22, 2019, the Company disclosed a supplemental analyst package in connection with its earnings conference call for the quarter ended March 31, 2019 which will take place on April 23, 2019. 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 April 22, 2019
 
Supplemental Analyst Package - First Quarter 2019





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:
April 23, 2019
 
 
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
397608193_acclogocolora12.jpg



American Campus Communities, Inc. Reports First Quarter 2019 Financial Results

Quarter highlighted by strong same store NOI and FFOM per share growth.


AUSTIN, Texas--(BUSINESS WIRE)-April 22, 2019--American Campus Communities, Inc. (NYSE:ACC) today announced the following financial results for the quarter ended March 31, 2019.


Highlights
    
Reported net income attributable to ACC of $29.6 million or $0.21 per fully diluted share, versus $25.9 million or $0.18 per fully diluted share in the first quarter 2018.

Increased FFOM to $95.3 million or $0.69 per fully diluted share versus $86.4 million or $0.62 per fully diluted share in the first quarter prior year, an increase of 11.3 percent per share.

Grew same store net operating income ("NOI") by 5.1 percent over the first quarter 2018. Revenues increased 3.1 percent and operating expenses increased 0.5 percent.

Increased same store average physical occupancy to 96.9 percent for the first quarter 2019 compared to 94.9 percent for the first quarter 2018.

Selected as the student housing master plan development partner for the recent UC Berkeley Student Housing Initiative RFQ. UC Berkeley expects to develop multiple phases of housing on several project sites to provide in excess of 6,000 new beds. The full scope, transaction structure, feasibility, fees, and timing will be negotiated.

Commenced construction on third-party on-campus development projects at Drexel University and Prairie View A&M University.

Won an industry-leading six Innovator Awards at this year's Student Housing Business National Conference including Best New Development by a College, University or Institution; Best Use of Green/Sustainable Development; Best Public/Private Partnership Financing Solution; Best New Development (less than 400 beds); Best Bandwidth/Connectivity Solution and Best In-House Management Innovation. Since the inception of the Innovator Awards, ACC and its communities have won an industry-leading total of 37 awards, furthering its best-in-class reputation among colleges, universities and industry partners.

“We are pleased with our first quarter performance, generating earnings growth of 11 percent and same store NOI growth of over five percent,” said Bill Bayless, American Campus Communities CEO. “We’re off to a great start this year with same store revenues meeting our expectations and operating expenses coming in better than expected. However, we have a lot left to complete with our Fall 2019 lease-up and several third party development transactions remaining to close. We are also delighted to have been selected as the student housing master plan development partner for UC Berkeley, the world’s number one public university as ranked by U.S. News & World Report, further substantiating our position as the world’s best-in-class student housing partner.”




First Quarter Operating Results
Revenue for the 2019 first quarter totaled $242.1 million, versus $220.4 million in the first quarter 2018, and operating income for the quarter totaled $59.0 million compared to $50.4 million in the prior year first quarter. The increase in revenue and operating income was primarily due to growth resulting from an increase in average occupancy and rental rates for the 2018-2019 academic year and development properties completed in 2018. Net income for the 2019 first quarter totaled $29.6 million, or $0.21 per fully diluted share, compared with net income of $25.9 million, or $0.18 per fully diluted share for the same quarter in 2018. FFO for the 2019 first quarter totaled $98.4 million, or $0.71 per fully diluted share, as compared to $89.8 million, or $0.65 per fully diluted share for the same quarter in 2018. FFOM for the 2019 first quarter was $95.3 million, or $0.69 per fully diluted share as compared to $86.4 million, or $0.62 per fully diluted share for the same quarter in 2018. A reconciliation of FFO and FFOM to net income is provided in Table 3.
 
NOI for same store properties was $120.5 million in the quarter, an increase of 5.1 percent from $114.7 million in the 2018 first quarter. Same store property revenues increased by 3.1 percent, reflecting 3.4 percent growth in rental revenue and a 0.7 percent reduction in other income. Same store property operating expenses increased by 0.5 percent. Same store property revenues and operating expenses reflect the reclassification of the provision for uncollectible accounts from operating expenses to revenues due to the company’s adoption of new lease accounting guidance on January 1, 2019. The reclassification had no effect on same store or total property NOI. Excluding the reclassification, same store property revenues and operating expenses would have increased by 3.2 percent and 0.8 percent, respectively. NOI for the total owned portfolio increased 12.4 percent to $133.0 million for the quarter from $118.3 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 continues to progress on the construction of its $767.5 million development pipeline and $107.3 million presale development pipeline that includes expected deliveries in Fall 2019 through 2021. These projects are all core Class A assets located on campus or pedestrian to campus in their respective markets and remain on track to meet their targeted stabilized development yield in the range of 6.25 - 6.8 percent for developments and 5.75 - 6.25 percent for presale developments.
Third-Party Services
The company was selected as the student housing master plan development partner for the recent UC Berkeley Student Housing Initiative RFQ. The initiative is part of UC Berkeley's plan to provide in excess of 6,000 new beds on several project sites. Currently, the parties are in exclusive negotiations for the first development site that will provide 1,500 to 2,000 new on campus beds. The full scope, transaction structure, feasibility, fees, and timing have yet to be determined and will be evaluated during the due diligence process.

During the quarter, the company closed on financing and commenced construction on a third-party on-campus redevelopment project with Drexel University. The project includes the redevelopment of approximately 400 beds of replacement housing and a new Drexel Honors college including associated academic space within the community. The company expects to earn $1.8 million in development fees throughout the construction period with completion of the student residence hall scheduled for Fall 2019 and completion of the honors college scheduled for completion in 2020.

Subsequent to quarter end, the company closed on financing and commenced construction on a third-party on-campus development with Prairie View A&M University, representing the company’s ninth phase of development on the campus. The company expects to earn $2.5 million in development fees throughout the construction period and anticipates providing management services for the project upon completion.
Capital Markets
As previously announced, during the quarter the company expanded its senior unsecured revolving credit facility by utilizing the accordion feature, increasing the facility size to $1 billion from $700 million. The facility continues to have an accordion feature which allows the company to expand the facility by up to an additional



$200 million, subject to the satisfaction of certain conditions. The revolving credit facility matures on March 15, 2022.
At-The-Market (ATM) Share Offering Program
The company did not sell any shares under the ATM during the quarter.
2019 Outlook
The company is maintaining its previously stated guidance range for the fiscal year 2019, anticipating that FFO will be in the range of $2.40 to $2.50 per fully diluted share and FFOM will be in the range of $2.35 to $2.45 per fully diluted share. For additional details regarding the company’s 2019 outlook, please see pages S-15 through S-16 of the Supplemental Analyst Package 1Q 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 for the fiscal year ending December 31, 2019 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 first quarter results and the 2019 outlook on Tuesday, April 23, 2019 at 10:00 a.m. ET (9:00 a.m. CT). The conference call may be accessed by dialing 888-317-6003 passcode 4641106, 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 May 7, 2019 by dialing 877-344-7529 or 412-317-0088 conference number 10129518. 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, contractual executive separation and retirement charges, 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 March 31, 2019, American Campus Communities owned 171 student housing properties containing approximately 109,400



beds. Including its owned and third-party managed properties, ACC's total managed portfolio consisted of 205 properties with approximately 133,700 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 2019 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)
 
 
March 31, 2019
 
December 31, 2018
 
 
(unaudited)
 
 
Assets
 
 
 
 
 
 
 
 
 
Investments in real estate:
 
 
 
 
Owned properties, net
 
$
6,606,019

 
$
6,583,397

Owned property held for sale
 
9,258

 

On-campus participating properties, net
 
78,870

 
77,637

Investments in real estate, net
 
6,694,147

 
6,661,034

 
 
 
 
 
Cash and cash equivalents
 
46,166

 
71,238

Restricted cash
 
33,689

 
35,279

Student contracts receivable
 
14,056

 
8,565

Other assets1
 
537,390

 
262,730

 
 
 
 
 
Total assets
 
$
7,325,448

 
$
7,038,846

 
 
 
 
 
Liabilities and equity
 
 

 
 

 
 
 
 
 
Liabilities:
 
 

 
 

Secured mortgage, construction and bond debt, net
 
$
864,070

 
$
853,084

Unsecured notes, net
 
1,589,096

 
1,588,446

Unsecured term loans, net
 
198,857

 
198,769

Unsecured revolving credit facility
 
457,400

 
387,300

Accounts payable and accrued expenses
 
58,439

 
88,767

Operating lease liabilities2
 
282,550

 

  Other liabilities2
 
185,234

 
191,233

Total liabilities
 
3,635,646

 
3,307,599

 
 
 
 
 
Redeemable noncontrolling interests
 
186,695

 
184,446

 
 
 
 
 
Equity:
 
 

 
 

American Campus Communities, Inc. and Subsidiaries
  stockholders’ equity:
 
 
 
 
Common stock
 
1,370

 
1,370

Additional paid in capital
 
4,455,948

 
4,458,240

Common stock held in rabbi trust
 
(3,162
)
 
(3,092
)
Accumulated earnings and dividends
 
(1,005,041
)
 
(971,070
)
Accumulated other comprehensive loss
 
(10,191
)
 
(4,397
)
Total American Campus Communities, Inc. and
  Subsidiaries stockholders’ equity
 
3,438,924

 
3,481,051

  Noncontrolling interests – partially owned properties
 
64,183

 
65,750

Total equity
 
3,503,107

 
3,546,801

 
 
 
 
 
Total liabilities and equity
 
$
7,325,448

 
$
7,038,846


1.
For purposes of calculating net asset value ("NAV") at March 31, 2019, the company excludes other assets of approximately $5.8 million related to net deferred financing costs on its revolving credit facility and the net value of in-place leases and approximately $280.0 million of right of use assets associated with new lease accounting guidance that was adopted by the company on January 1, 2019.
2.
For purposes of calculating NAV at March 31, 2019, the company excludes other liabilities of approximately $52.7 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 
 March 31,
 
 
 
2019
 
2018
 
 
 
(unaudited)
 
Revenues
 
 
 
 
 
Owned properties1
 
$
224,419

 
$
205,532

 
On-campus participating properties1
 
11,448

 
10,443

 
Third-party development services
 
3,171

 
846

 
Third-party management services
 
2,311

 
2,731

 
Resident services
 
782

 
857

 
Total revenues
 
242,131

 
220,409

 
 
 
 
 
 
 
Operating expenses
 
 

 
 

 
Owned properties1
 
92,169

 
88,060

 
On-campus participating properties1
 
3,957

 
3,425

 
Third-party development and management services
 
4,186

 
4,198

 
General and administrative
 
7,315

 
6,699

 
Depreciation and amortization
 
68,755

 
64,779

 
Ground/facility leases
 
3,549

 
2,842

 
Provision for real estate impairment2
 
3,201

 

 
Total operating expenses
 
183,132

 
170,003

 
 
 
 
 
 
 
Operating income
 
58,999

 
50,406

 
 
 
 
 
 
 
Nonoperating income (expenses)
 
 

 
 

 
Interest income
 
926

 
1,223

 
Interest expense
 
(27,061
)
 
(23,684
)
 
Amortization of deferred financing costs
 
(1,132
)
 
(1,414
)
 
Total nonoperating expenses
 
(27,267
)
 
(23,875
)
 
 
 
 
 
 
 
   Income before income taxes
 
31,732

 
26,531

 
Income tax provision
 
(364
)
 
(281
)
 
Net income
 
31,368

 
26,250

 
Net income attributable to noncontrolling interests
 
(1,728
)
 
(323
)
 
Net income attributable to ACC, Inc. and
  Subsidiaries common stockholders
 
$
29,640

 
$
25,927

 
Other comprehensive (loss) income
 
 

 
 

 
Change in fair value of interest rate swaps and other
 
(5,794
)
 
465

 
Comprehensive income
 
$
23,846

 
$
26,392

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

 
 
 
 
 
 
 
Basic
 
$
0.21

 
$
0.19

 
 
 
 
 
 
 
Diluted
 
$
0.21

 
$
0.18

 
 
 
 
 
 
 
Weighted-average common shares outstanding
 
 

 
 

 
 
 
 
 
 
 
Basic
 
137,101,535

 
136,525,557

 
 
 
 
 
 
 
Diluted
 
138,152,378

 
137,499,963

 


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.  The provision for uncollectible accounts for owned properties was $1.1 million and $0.9 million for the three months ended March 31, 2019 and 2018, respectively.  The provision for uncollectible accounts for on-campus participating properties was a $0.8 million benefit and a $0.1 million expense for the three months ended March 31, 2019 and 2018, respectively. 
2.
Represents an impairment charge recorded for an owned property classified as held for sale as of March 31, 2019.






Table 3
American Campus Communities, Inc. and Subsidiaries
Consolidated Statements of Funds from Operations
(unaudited, dollars in thousands, except share and per share data)
 
 
Three Months Ended 
 March 31,
 
 
 
2019
 
2018
 
Net income attributable to ACC, Inc. and Subsidiaries
  common stockholders
 
$
29,640

 
$
25,927

 
Noncontrolling interests1
 
160

 
322

 
Elimination of provision for real estate impairment
 
3,201

 

 
Real estate related depreciation and amortization2
 
65,376

 
63,578

 
Funds from operations (“FFO”) attributable to common stockholders and OP unitholders
 
98,377

 
89,827

 
Elimination of operations of on-campus participating properties
 
 

 
 

 
Net income from on-campus participating properties
 
(3,692
)
 
(3,369
)
 
Amortization of investment in on-campus participating properties
 
(2,029
)
 
(1,942
)
 
 
 
92,656

 
84,516

 
Modifications to reflect operational performance of on-campus participating properties
 
 

 
 

 
Our share of net cashflow3
 
882

 
795

 
Management fees and other4
 
820

 
477

 
Contribution from on-campus participating properties
 
1,702

 
1,272

 
 
 
 
 
 
 
Elimination of FFO from property in receivership5
 
969

 
590

 
Funds from operations-modified (“FFOM”) attributable to common stockholders and OP unitholders
 
$
95,327

 
$
86,378

 
 
 
 
 
 
 
FFO per share – diluted
 
$
0.71

 
$
0.65

 
 
 
 
 
 
 
FFOM per share – diluted
 
$
0.69

 
$
0.62

 
 
 
 
 
 
 
Weighted-average common shares outstanding - diluted
 
138,811,527

 
138,534,412

 
 
 
 
 
 
 

1.
The difference from the amount presented in the company’s consolidated statements of comprehensive income represents consolidated joint venture partners’ share of net income.
2.
The difference from the amount presented in the company’s consolidated statements of comprehensive income represents corporate depreciation and consolidated joint venture partners’ share of depreciation. Corporate depreciation for the three months ended March 31, 2019 was $1.2 million. The joint venture partners' share of depreciation for the three months ended March 31, 2019 was $2.2 million.
3.
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).
4.
Includes a $0.3 million transaction fee related to the conversion of one property at Prairie View A&M University to the on-campus participating property ("OCPP") structure in January 2019.
5.
Represents FFO for an owned property that has been in receivership since May 2017 and is in the process of being transferred to the lender in settlement of the property's $27.4 million mortgage loan that matured in August 2017. FFOM for the prior year comparable period has been adjusted to reflect this elimination.
 





Table 4
American Campus Communities, Inc. and Subsidiaries
Owned Properties Results of Operations1 
(unaudited, dollars in thousands)
 
 
 
Three Months Ended March 31,
 
 
 
2019
 
2018
 
$ Change
 
% Change
Owned properties revenues
 
 
 
 
 
 
 
 
Same store properties2
 
$
205,369

 
$
199,115

 
$
6,254

 
3.1
%
New properties
 
18,558

 
121

 
18,437

 
 
Sold and held for sale properties
 
1,274

 
6,235

 
(4,961
)
 
 
Total revenues2 3
 
$
225,201

 
$
205,471

 
$
19,730

 
9.6
%
Owned properties operating expenses
 
 
 
 
 
 
 
 
Same store properties2
 
$
84,837

 
$
84,382

 
$
455

 
0.5
%
New properties
 
6,115

 
124

 
5,991

 
 
Other4
 
109

 

 
109

 
 
Sold and held for sale properties5
 
1,108

 
2,636

 
(1,528
)
 
 
Total operating expenses2
 
$
92,169

 
$
87,142

 
$
5,027

 
5.8
%
Owned properties net operating income
 
 
 
 
 
 
 
 
Same store properties
 
$
120,532

 
$
114,733

 
$
5,799

 
5.1
%
New properties
 
12,443

 
(3
)
 
12,446

 
 
Other4
 
(109
)
 

 
(109
)
 
 
Sold and held for sale properties5
 
166

 
3,599

 
(3,433
)
 
 
Total net operating income
 
$
133,032

 
$
118,329

 
$
14,703

 
12.4
%
 
 
 
 
 
 
 
 
 
 

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 March 31, 2019.
2.
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.  For purposes of calculating same store and new property results of operations, the reclassification is reflected for all periods presented to ensure comparability between periods.  The amount reclassified from operating expenses to revenue for same store properties was $1.0 million and $0.8 million for the three months ended March 31, 2019 and 2018, respectively. See table 3 for the total amounts reclassified from operating expenses to revenue for all properties for both periods presented.
3.
Includes revenues that are reflected as Resident Services Revenue on the accompanying consolidated statements of comprehensive income.
4.
Includes 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).
5.
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
2019 Outlook1 
(dollars in thousands, except share and per share data)
 
 
Low
 
High
 
 
 
 
 
Net income2
 
$
74,600

 
$
86,700

Noncontrolling interests
 
900

 
1,000

Depreciation and amortization
 
258,200

 
259,100

Funds from operations (“FFO”)
 
$
333,700

 
$
346,800

 
 
 
 
 
Elimination of operations from on-campus participating properties
 
(14,100
)
 
(13,700
)
Contribution from on-campus participating properties
 
5,500

 
6,100

Transaction costs3
 
800

 
800

Funds from operations - modified (“FFOM”)
 
$
325,900

 
$
340,000

 
 
 
 
 
Net income per share - diluted
 
$
0.54

 
$
0.62

 
 
 
 
 
FFO per share - diluted
 
$
2.40

 
$
2.50

 
 
 
 
 
FFOM per share - diluted
 
$
2.35

 
$
2.45

 
 
 
 
 
Weighted-average common shares outstanding - diluted
 
138,866,100

 
138,866,100

 
 
 
 
 

1. The company believes that the financial results for the fiscal year ending December 31, 2019 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 2019-2020 academic year;
the timing of 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 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 or the effect of transferring Blanton Common to the lender, as such will be eliminated for the purposes of calculating FFOM.
3. Represents transaction costs related to the closing of two presale development properties.



















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


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Section 3: EX-99.2 (EXHIBIT 99.2)

ex992q12019supplemental
Q1 Supplemental Package April 22, 2019 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 S-4 Owned Properties Results of Operations S-5 Same Store Owned Properties Operating Expenses S-6 Seasonality of Operations S-7 Owned Development Update S-8 Presale Development Update S-9 Third-Party Development Update S-10 Management Services Update S-11 Capital Structure S-12 Interest Coverage S-13 Capital Allocation – Long Term Funding Plan (2019-2023) S-14 2019 Outlook - Summary S-15 2019 Outlook - Detail S-16 Detail of Property Groupings S-17 Definitions S-18 Investor Information S-20


 
Financial Highlights ($ in thousands, except share and per share data) Operating Data Three Months Ended March 31, 2019 2018 $ Change % Change Total revenues $ 242,131 $ 220,409 $ 21,722 9.9% Operating income 58,999 50,406 8,593 17.0% Net income attributable to ACC1 29,640 25,927 3,713 14.3% Net income per share - basic 0.21 0.19 Net income per share - diluted 0.21 0.18 Funds From Operations - ("FFO")2 98,377 89,827 8,550 9.5% FFO per share - diluted2 0.71 0.65 0.06 9.2% Funds From Operations - Modified ("FFOM")2 95,327 86,378 8,949 10.4% FFOM per share - diluted2 0.69 0.62 0.07 11.3% Market Capitalization and Unsecured Notes Covenants3 March 31, 2019 December 31, 2018 Debt to total market capitalization 32.0% 34.6% Net debt to EBITDA4 6.5x 6.3x Unencumbered asset value to total asset value 81.0% 81.2% Total debt to total asset value 37.3% 36.5% Secured debt to total asset value 10.2% 10.2% Unencumbered asset value to unsecured debt 299.8% 308.0% Interest coverage4 4.1x 4.2x 1. Excluding provision or real estate impairment, net income attributable to ACC for the three months ended March 31, 2019 would have been $32.8 million. 2. Refer to page S-4 for a reconciliation to net income, the most directly comparable GAAP measure. 3. Refer to the definitions outlined on pages S-18 and S-19 for detailed definitions of terms appearing on this page. 4. Refer to calculations on page S-13, including a reconciliation to net income and interest expense, the most directly comparable GAAP measures. S-1


 
Consolidated Balance Sheets ($ in thousands) March 31, 2019 December 31, 2018 (unaudited) Assets Investments in real estate: Owned properties, net $ 6,606,019 $ 6,583,397 Owned property held for sale 9,258 — On-campus participating properties, net 78,870 77,637 Investments in real estate, net 6,694,147 6,661,034 Cash and cash equivalents 46,166 71,238 Restricted cash 33,689 35,279 Student contracts receivable 14,056 8,565 Other assets1 537,390 262,730 Total assets $ 7,325,448 $ 7,038,846 Liabilities and equity Liabilities: Secured mortgage, construction and bond debt, net $ 864,070 $ 853,084 Unsecured notes, net 1,589,096 1,588,446 Unsecured term loans, net 198,857 198,769 Unsecured revolving credit facility 457,400 387,300 Accounts payable and accrued expenses 58,439 88,767 Operating lease liabilities2 282,550 — Other liabilities2 185,234 191,233 Total liabilities 3,635,646 3,307,599 Redeemable noncontrolling interests 186,695 184,446 Equity: American Campus Communities, Inc. and Subsidiaries stockholders' equity: Common stock 1,370 1,370 Additional paid in capital 4,455,948 4,458,240 Common stock held in rabbi trust (3,162) (3,092) Accumulated earnings and dividends (1,005,041) (971,070) Accumulated other comprehensive loss (10,191) (4,397) Total American Campus Communities, Inc. and Subsidiaries stockholders' equity 3,438,924 3,481,051 Noncontrolling interests - partially owned properties 64,183 65,750 Total equity 3,503,107 3,546,801 Total liabilities and equity $ 7,325,448 $ 7,038,846 1. For purposes of calculating net asset value ("NAV") at March 31, 2019, the company excludes other assets of approximately $5.8 million related to net deferred financing costs on its revolving credit facility and the net value of in-place leases and approximately $280.0 million of right of use assets associated with new lease accounting guidance that was adopted by the company on January 1, 2019. 2. For purposes of calculating NAV at March 31, 2019, the company excludes other liabilities of approximately $52.7 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 (Unaudited, $ in thousands, except share and per share data) Three Months Ended March 31, 2019 2018 $ Change Revenues Owned properties1 $ 224,419 $ 205,532 $ 18,887 On-campus participating properties1 11,448 10,443 1,005 Third-party development services 3,171 846 2,325 Third-party management services 2,311 2,731 (420) Resident services 782 857 (75) Total revenues 242,131 220,409 21,722 Operating expenses Owned properties1 92,169 88,060 4,109 On-campus participating properties1 3,957 3,425 532 Third-party development and management services 4,186 4,198 (12) General and administrative 7,315 6,699 616 Depreciation and amortization 68,755 64,779 3,976 Ground/facility leases 3,549 2,842 707 Provision for real estate impairment2 3,201 — 3,201 Total operating expenses 183,132 170,003 13,129 Operating income 58,999 50,406 8,593 Nonoperating income (expenses) Interest income 926 1,223 (297) Interest expense (27,061) (23,684) (3,377) Amortization of deferred financing costs (1,132) (1,414) 282 Total nonoperating expenses (27,267) (23,875) (3,392) Income before income taxes 31,732 26,531 5,201 Income tax provision (364) (281) (83) Net income 31,368 26,250 5,118 Net income attributable to noncontrolling interests (1,728) (323) (1,405) Net income attributable to ACC, Inc. and Subsidiaries common stockholders $ 29,640 $ 25,927 $ 3,713 Other comprehensive (loss) income Change in fair value of interest rate swaps and other (5,794) 465 (6,259) Comprehensive income $ 23,846 $ 26,392 $ (2,546) Net income per share attributable to ACC, Inc. and Subsidiaries common stockholders Basic $ 0.21 $ 0.19 Diluted $ 0.21 $ 0.18 Weighted-average common shares outstanding Basic 137,101,535 136,525,557 Diluted 138,152,378 137,499,963 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.  The provision for uncollectible accounts for owned properties was $1.1 million and $0.9 million for the three months ended March 31, 2019 and 2018, respectively.  The provision for uncollectible accounts for on-campus participating properties was a $0.8 million benefit and a $0.1 million expense for the three months ended March 31, 2019 and 2018, respectively.  2. Represents an impairment charge recorded for an owned property classified as held for sale as of March 31, 2019. S-3


 
Consolidated Statements of Funds from Operations (Unaudited, $ in thousands, except share and per share data) Three Months Ended March 31, 2019 2018 $ Change Net income attributable to ACC, Inc. and Subsidiaries common stockholders $ 29,640 $ 25,927 $ 3,713 Noncontrolling interests1 160 322 (162) Elimination of provision for real estate impairment 3,201 — 3,201 Real estate related depreciation and amortization2 65,376 63,578 1,798 Funds from operations ("FFO") attributable to common stockholders and OP unitholders 98,377 89,827 8,550 Elimination of operations of on-campus participating properties Net income from on-campus participating properties (3,692) (3,369) (323) Amortization of investment in on-campus participating properties (2,029) (1,942) (87) 92,656 84,516 8,140 Modifications to reflect operational performance of on-campus participating properties Our share of net cashflow3 882 795 87 Management fees and other4 820 477 343 Contribution from on-campus participating properties 1,702 1,272 430 Elimination of FFO from property in receivership5 969 590 379 Funds from operations-modified ("FFOM") attributable to common stockholders and OP unitholders $ 95,327 $ 86,378 $ 8,949 FFO per share - diluted $ 0.71 $ 0.65 FFOM per share - diluted $ 0.69 $ 0.62 Weighted-average common shares outstanding - diluted 138,811,527 138,534,412 1. The difference from the amount presented in the company’s consolidated statements of comprehensive income represents consolidated joint venture partners’ share of net income. 2. The difference from the amount presented in the company’s consolidated statements of comprehensive income represents corporate depreciation and consolidated joint venture partners’ share of depreciation. Corporate depreciation for the three months ended March 31, 2019 was $1.2 million. The joint venture partners' share of depreciation for the three months ended March 31, 2019 was $2.2 million. 3. 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). 4. Includes a $0.3 million transaction fee related to the conversion of one property at Prairie View A&M University to the on-campus participating property ("OCPP") structure in January 2019. 5. Represents FFO for an owned property that has been in receivership since May 2017 and is in the process of being transferred to the lender in settlement of the property's $27.4 million mortgage loan that matured in August 2017. FFOM for the prior year comparable period has been adjusted to reflect this elimination. S-4


 
Owned Properties Results of Operations1 ($ in thousands) Three Months Ended March 31, 2019 2018 $ Change % Change Owned properties revenues Same store properties2 $ 205,369 $ 199,115 $ 6,254 3.1% New properties 18,558 121 18,437 Sold and held for sale properties 1,274 6,235 (4,961) Total revenues2 3 $ 225,201 $ 205,471 $ 19,730 9.6% Owned properties operating expenses Same store properties2 4 $ 84,837 $ 84,382 $ 455 0.5% New properties 6,115 124 5,991 Other5 109 — 109 Sold and held for sale properties6 1,108 2,636 (1,528) Total operating expenses2 $ 92,169 $ 87,142 $ 5,027 5.8% Owned properties net operating income Same store properties $ 120,532 $ 114,733 $ 5,799 5.1% New properties 12,443 (3) 12,446 Other5 (109) — (109) Sold and held for sale properties6 166 3,599 (3,433) Total net operating income $ 133,032 $ 118,329 $ 14,703 12.4% 1. Refer to page S-17 for detail of our store groupings. 2. 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.  For purposes of calculating same store and new property results of operations, the reclassification is reflected for all periods presented to ensure comparability between periods.  The amount reclassified from operating expenses to revenue for same store properties was $1.0 million and $0.8 million for the three months ended March 31, 2019 and 2018, respectively. See page S-4 for the total amounts reclassified from operating expenses to revenue for all properties for both periods presented. 3. Includes revenues that are reflected as Resident Services Revenue on the accompanying consolidated statements of comprehensive income. 4. Refer to page S-6 for detail of same store operating expenses. 5. Includes 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). 6. Does not include the allocation of payroll and other administrative costs related to corporate management and oversight. S-5


 
Same Store Owned Properties Operating Expenses1 2 ($ in thousands, except per bed amounts) Three Months Ended March 31, 2019 2018 % Change % of Total % of Total From Prior Operating Operating Total Per Bed Year Expenses Total Per Bed Expenses Property taxes $ 21,383 $ 247 4.4% 25% $ 20,473 $ 236 24% General & administrative and other3 18,134 209 2.8% 22% 17,643 203 21% Utilities 17,998 208 (4.9%) 21% 18,922 218 22% Payroll 15,803 182 (0.8%) 19% 15,926 184 19% Repairs and maintenance 5,779 67 3.5% 7% 5,582 64 7% Marketing 3,772 42 (2.3%) 4% 3,862 45 5% Insurance 1,968 23 (0.3%) 2% 1,974 23 2% Total same store owned operating expenses3 $ 84,837 $ 978 0.5 % 100% $ 84,382 $ 973 100% Same store owned beds4 86,717 1. Refer to the definition of operating expenses on page S-19 for a detailed description of items included in the various expense categories. 2. Refer to page S-17 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.  For purposes of calculating same store operating expenses, the reclassification is reflected for all periods presented to ensure comparability between periods. Refer to page S-5 for details. 4. Includes 4,611 beds in the ACC / Allianz consolidated joint venture. S-6


 
Seasonality of Operations1 ($ in thousands, except per bed amounts) Three Months Ended Total/Weighted Average- March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 March 31, 2019 Last 12 Months 2019 Same Store Properties Average number of owned beds2 86,717 86,717 86,717 86,717 86,717 86,717 Average physical occupancy for the quarter 94.9% 88.4% 89.9% 97.2% 96.9% 93.1% Rental revenue per occupied bed per month3 $ 753 $ 741 $ 739 $ 768 $ 763 $ 753 Rental revenue $ 185,962 $ 170,336 $ 172,839 $ 194,292 $ 192,304 $ 729,771 Other income4 5 13,153 13,945 16,952 12,820 13,065 56,782 Total revenue $ 199,115 $ 184,281 $ 189,791 $ 207,112 $ 205,369 $ 786,553 Property operating expenses5 84,382 81,791 98,929 83,536 84,837 349,093 Net operating income $ 114,733 $ 102,490 $ 90,862 $ 123,576 $ 120,532 $ 437,460 Operating margin 57.6% 55.6% 47.9% 59.7% 58.7% 55.6% 2019 New Properties Average number of owned beds — — 3,493 6,985 6,985 4,366 Average physical occupancy for the quarter —% —% 96.9% 96.9% 97.6% 97.2% Rental revenue per occupied bed per month3 $ — $ — $ 879 $ 889 $ 878 $ 883 Rental revenue $ — $ — $ 8,927 $ 18,056 $ 17,960 $ 44,943 Other income4 121 136 410 710 598 1,854 Total revenue $ 121 $ 136 $ 9,337 $ 18,766 $ 18,558 $ 46,797 Property operating expenses 124 191 4,831 5,114 6,115 16,251 Net operating income $ (3) $ (55) $ 4,506 $ 13,652 $ 12,443 $ 30,546 Operating margin N/A N/A 48.3% 72.7% 67.0% 65.3% ALL PROPERTIES Average number of owned beds2 86,717 86,717 90,210 93,702 93,702 91,083 Average physical occupancy for the quarter 94.9% 88.4% 90.2% 97.2% 96.9% 93.3% Rental revenue per occupied bed per month3 $ 753 $ 741 $ 745 $ 777 $ 772 $ 760 Rental revenue $ 185,962 $ 170,336 $ 181,766 $ 212,348 $ 210,264 $ 774,714 Other income4 13,274 14,081 17,362 13,530 13,663 58,636 Total revenue $ 199,236 $ 184,417 $ 199,128 $ 225,878 $ 223,927 $ 833,350 Property operating expenses 84,506 81,982 103,760 88,650 90,952 365,344 Net operating income $ 114,730 $ 102,435 $ 95,368 $ 137,228 $ 132,975 $ 468,006 Operating margin 57.6% 55.5% 47.9% 60.8% 59.4% 56.2% Sold, held for sale properties and other6 Total revenue $ 6,235 $ 3,992 $ 1,547 $ 1,537 $ 1,274 $ 8,350 Property operating expenses 2,636 2,340 1,386 1,112 1,217 6,055 Net operating income $ 3,599 $ 1,652 $ 161 $ 425 $ 57 $ 2,295 1. Refer to page S-17 for detail of our store groupings. 2. Includes 4,611 beds in the ACC / Allianz consolidated joint venture. 3. 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. 4. 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. 5. 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 for all periods presented to ensure comparability between periods.  The amount reclassified from operating expenses to revenue was $0.8 million for the three months ended March 31, 2018, $1.7 million for the three months ended June 30, 2018, $2.7 million for the three months ended September 30, 2018, $1.5 million for the three months ended December 31, 2018, and $1.0 million for the three months ended March 31, 2019. 6. Includes costs related to the formation of the ACC / Allianz joint venture as noted on page S-5. S-7


 
Owned Development Update ($ in thousands) OWNED DEVELOPMENT PROJECTS UNDER CONSTRUCTION Project Estimated Total Costs Incurred as Scheduled Project Location Primary University / Market Served Type Beds Project Cost1 of March 31, 2019² Occupancy 191 College Auburn, AL Auburn University Off-campus 495 $ 59,300 $ 47,507 July 2019 LightView Boston, MA Northeastern University ACE 825 153,400 129,986 August 2019 University of Arizona Honors College Tucson, AZ University of Arizona ACE 1,056 84,700 62,826 August 2019 SUBTOTAL - 2019 DELIVERIES 2,376 $ 297,400 $ 240,319 Disney College Program Phases I-II3 4 Orlando, FL Walt Disney World Resort ACE 1,627 $ 108,500 $ 24,775 May & Aug 2020 Currie Hall Phase II Los Angeles, CA University of Southern California ACE 272 42,000 4,313 July 2020 San Francisco State University San Francisco, CA San Francisco State University ACE 584 129,200 27,912 August 2020 SUBTOTAL - 2020 DELIVERIES 2,483 $ 279,700 $ 57,000 Disney College Program Phases III-V3 5 Orlando, FL Walt Disney World Resort ACE 3,369 $ 190,400 $ 24,082 Jan, May & Aug 2021 SUBTOTAL - 2021 DELIVERIES 3,369 $ 190,400 $ 24,082 OWNED DEVELOPMENT PIPELINE6 Project Targeted Anticipated Estimated Targeted Project Location Primary University / Market Served Type Beds Commencement Project Cost1 7 Occupancy Disney College Program Phases VI-VIII3 Orlando, FL Walt Disney World Resort ACE 3,235 Q4 2019 $ 193,000 2022 Disney College Program Phases IX-X3 Orlando, FL Walt Disney World Resort ACE 2,209 Q2 2020 122,700 2023 5,444 $ 315,700 1. 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. 2. Includes $317.4 million in construction in progress "CIP" and excludes $80.4 million of CIP balances related to presale development projects and ongoing renovation projects at operating properties. Total consolidated CIP as of March 31, 2019 was $397.8 million. 3. The company executed a ground lease agreement 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. 4. 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. 5. 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. 6. Does not include land parcels in nine university markets totaling $58.4 million. Commencement of owned off-campus development projects is subject to final determination of feasibility, execution and closing on definitive agreements, municipal approval processes, fluctuations in the construction market, and current capital market conditions. ACE awards provide the company with the opportunity to exclusively negotiate with the subject universities. Commencement of ACE projects is subject to various levels of university board approval, final determination of feasibility, execution and closing on definitive agreements, municipal approval processes, fluctuations in the construction market, and current capital market conditions. 7. Estimated Project Cost includes predevelopment costs of $10.9 million incurred as of March 31, 2019 for owned development pipeline projects. S-8


 
Presale Development Update1 ($ in thousands) PRESALE DEVELOPMENT PROJECTS UNDER CONSTRUCTION Amount Funded Remaining Project Purchase as of Purchase Price Scheduled Project Location Primary University Served Type Beds Price2 March 31, 2019³ to be Funded Occupancy The Flex at Stadium Centre Tallahassee, FL Florida State University Off-campus 340 $ 36,700 $ 353 $ 36,347 August 2019 959 Franklin4 Eugene, OR University of Oregon Off-campus 443 70,600 19,873 50,727 September 2019 SUBTOTAL - 2019 DELIVERIES 783 $ 107,300 $ 20,226 $ 87,074 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. S-9


 
Third-Party Development Update ($ in thousands) Three Months Ended March 31, 2019 2018 $ Change Development services revenue $ 3,171 $ 846 $ 2,325 % of total revenue 1.3% 0.4% CONTRACTED PROJECTS IN PROGRESS Fees Earned Fees Remaining Fees as of Earned in as of Scheduled Project Location Primary University Served Beds Total Fees March 31, 2019 Current Year March 31, 2019 Completion University of Arizona Honors College1 Tucson, AZ University of Arizona — 1 $ 2,400 $ 1,954 $ 212 $ 446 July 2019 University of Illinois - Chicago Chicago, IL University of Illinois, Chicago 548 5,100 4,103 446 997 July 2019 University of California Irvine Phase IV Irvine, CA University of California, Irvine 1,441 5,900 4,769 605 1,131 August 2019 Delaware State University Dover, DE Delaware State University 620 2,500 1,979 226 521 August 2019 Drexel University - Calhoun Hall2 Philadelphia, PA Drexel University 406 1,750 1,323 1,323 427 Sept 2019 & Apr 2020 Prairie View A&M University Phase IX3 Prairie View, TX Prairie View A&M University 540 2,500 — — 2,500 August 2020 Dundee Residence Hall and Glasgow Riverside, CA University of California, Riverside 820 5,000 2,942 308 2,058 August 2020 Dining Hall 4,375 $ 25,150 $ 17,070 $ 3,120 $ 8,080 ON-CAMPUS AWARD PIPELINE4 Anticipated Anticipated Targeted Estimated Project Location Financing Structure Commencement Completion Fees University of California - Riverside North Riverside, CA Third-party Q3 2019 Fall 2021 $6,500 District Phase I Upper Hearst Development for the Berkeley, CA Third-party Q3 2019 Summer 2021 $3,000 Goldman School of Public Policy Concordia University Phase II Austin, TX Third-party Q1 2020 Summer 2021 TBD University of California Irvine Phase V Irvine, CA Third-party Q3 2020 Summer 2022 $3,500 Princeton University Lake Campus Princeton, NJ TBD TBD TBD TBD Graduate Housing University of California Berkeley Phase I Berkeley, CA TBD TBD TBD TBD 1. The University of Arizona Honors College project includes the construction of a parking garage, academic center and a student recreation and wellness center as part of the overall development project. These components will be owned, managed and funded by the University, and the company is earning third-party development fees for its role in providing development services for those components of the project. 2. Includes the construction of a student residence hall and honors college, which will be delivered in Fall 2019 and Spring 2020, respectively. 3. Construction commenced in April 2019. 4. 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. S-10


 
Management Services Update ($ in thousands) Three Months Ended March 31, 2019 2018 $ Change Management services revenue $ 2,311 $ 2,731 $ (420) % of total revenue 1.0% 1.2% NEW / PENDING MANAGEMENT CONTRACTS Actual or Approximate Stabilized Anticipated Project Location Primary University / Market Served Beds Annual Fees1 Commencement The Rixey Arlington, VA Marymount University 551 $ 300 February 2019 Walt Disney World College Program2 Orlando, FL Walt Disney World Resort 7,870 250 April 2019 University of Illinois - Chicago Chicago, IL University of Illinois, Chicago 548 240 August 2019 Delaware State University Dover, DE Delaware State University 620 220 August 2019 Campus1 - Montreal3 Montreal, Quebec McGill University 886 250 September 2019 University of California Irvine Phase IV Irvine, CA University of California, Irvine 1,441 630 September 2019 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 13,276 $ 2,520 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 1,429 $ 61 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 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 will include approximately $3.2 million in reimbursed payroll 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. S-11


 
Capital Structure as of March 31, 2019 ($ in millions, except per share data) Market Capitalization & Unsecured Notes Covenants Debt Maturity Schedule Total Debt1 $ 3,114 Total Equity Market Value2 6,604 Total Market Capitalization 9,718 Debt to Total Market Capitalization 32.0% Net Debt to EBITDA3 6.5x Total Asset Value4 $ 8,357 Unencumbered Asset Value 6,768 Unencumbered Asset Value to Total Asset Value 81.0% Requirement Current Ratio Total Debt to Total Asset Value ≤ 60% 37.3% Secured Debt to Total Asset Value ≤ 40% 10.2% Unencumbered Asset Value to Unsecured Debt > 150% 299.8% Interest Coverage3 > 1.5x 4.1x Weighted Average Principal Average Term To Outstanding1 Interest Rate Maturity Mortgage Loans5 $ 726 4.6%6 5.8 Yrs Construction Loans7 36 5.4% 0.5 Yrs Unsecured Revolving Credit Facility 457 3.7% 3.0 Yrs Unsecured Term Loan 200 3.6% 3.2 Yrs Unsecured Notes 1,600 3.7% 4.9 Yrs On-Campus Participating Properties 95 5.5% 13.6 Yrs Total/Weighted Average $ 3,114 4.0% 4.9 Yrs Variable Rate Debt as % of Total Debt8 23.6% Weighted Average Interest Rate Of Debt Maturing Each Year Mortgage Loans 6.3% 5.6% 5.4% 4.0% n/a 4.2% n/a n/a n/a 4.1% Total Debt 5.8% 3.5% 5.2% 3.7% 3.9% 4.2% 7.6% n/a 3.6% 4.2% Note – refer to the definitions outlined on pages S-18 and S-19 for detailed definitions of terms appearing on this page. 1. Excludes net unamortized debt premiums related to mortgage loans assumed in connection with acquisitions of $10.3 million, unamortized original issue discount on unsecured notes of $1.5 million, and unamortized deferred financing costs of $13.2 million. 2. Based on share price of $47.58 and fully diluted share count of 138,792,635 as of March 31, 2019. Assumes conversion of 630,030 common and preferred Operating Partnership units and 973,916 unvested restricted stock awards. 3. Refer to calculations on page S-13, including a reconciliation to net income and interest expense, the most directly comparable GAAP measures. 4. Excludes accumulated depreciation of $1.4 billion, receivables and intangible assets, net of accumulated amortization, of $69.8 million, and lease-related right of use assets of $280.0 million recorded upon the adoption of new lease accounting guidance on January 1, 2019. 5. Includes $330.0 million of mortgage debt related to the ACC / Allianz joint venture of which the company has a 55% interest. 6. 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 4.1%. 7. Construction loans are associated with presale developments and are an obligation of the third-party developer. In accordance with accounting guidance, the company is including the presale development properties and any associated debt in its consolidated financial statements. The debt will be paid off by the developer using proceeds from the company's purchase of the properties. 8. As of March 31, 2019 the company's variable rate debt consists of the unsecured revolving credit facility, unsecured term loan, a $41.2 million mortgage loan at one of our on-campus participating properties, and construction loans for presale developments. S-12


 
Interest Coverage ($ in thousands) Three Months Ended June 30, September 30, December 31, March 31, Last Twelve 2018 2018 2018 2019 Months Net income (loss) attributable to ACC, Inc. and Subsidiaries common stockholders $ 46,009 $ (2,345) $ 47,504 $ 29,640 $ 120,808 Net income (loss) attributable to noncontrolling interests (19) (392) 2,117 1,728 3,434 Interest expense 23,338 25,185 27,021 27,061 102,605 Income tax provision (benefit) 2,085 (219) 282 364 2,512 Depreciation and amortization 63,537 66,131 68,756 68,755 267,179 Amortization of deferred financing costs 2,214 1,116 1,072 1,132 5,534 Share-based compensation 3,604 2,875 2,254 3,765 12,498 Provision for real estate impairment — — — 3,201 3,201 Loss (gain) on extinguishment of debt, net 784 — (8,651) — (7,867) Gain from disposition of real estate (42,314) — — — (42,314) Earnings Before Interest, Taxes, Depreciation, and Amortization ("EBITDA") $ 99,238 $ 92,351 $ 140,355 $ 135,646 $ 467,590 Pro-forma adjustments to EBITDA1 5,871 Adjusted EBITDA $ 473,461 Interest Expense from consolidated statement of comprehensive income $ 23,338 $ 25,185 $ 27,021 $ 27,061 $ 102,605 Amortization of mortgage debt premiums/discounts 1,310 1,235 1,234 1,246 5,025 Capitalized interest 3,987 2,610 2,067 2,739 11,403 Change in accrued interest payable 7,261 (7,084) 4,709 (7,300) (2,414) Cash Interest Expense $ 35,896 $ 21,946 $ 35,031 $ 23,746 $ 116,619 Pro-forma adjustments to Cash Interest Expense1 (904) Adjusted Interest Expense $ 115,715 Interest Coverage 4.1x Note: refer to the definitions outlined on pages S-18 and S-19 for detailed definitions of terms appearing on this page. 1. 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-13


 
Capital Allocation – Long Term Funding Plan (2019-2023) ($ in millions) Sources and Uses for Development - As of March 31, 2019 Estimated Project Total Costs Remaining Estimated Capital Uses: Cost Incurred Capital Needs Development and Presale Development Pipeline1: 2019 Developments Underway $ 405 $ 261 $ 144 2020 Developments Underway or Expected to Start in Current Year 171 32 139 Disney Internships & College Program Housing Phases I-II (2020 deliveries) 109 25 84 Phases III-V (2021 deliveries) 190 24 166 Phases VI-VIII (2022 deliveries) 193 7 186 Phases IX-X (2023 deliveries) 123 4 119 Core Spaces / DRW Portfolio Transaction: Presale Developments - 2019 Funding2 154 — 154 Total $ 1,345 $ 353 $ 992 Estimated Sources through 2023: Capital Sources Cash and Cash Equivalents as of March 31, 2019 $ 46 Estimated Cash Flow Available for Investment - through 20233 305 Anticipated Debt Funding - through 20234 25 - 225 Anticipated Capital Recycling and/or Equity Funding - through 20234 616 - 416 Total $ 992 Selected Credit Metrics5 Credit Metric: March 31, 2019 Pro Forma6 Total Debt to Total Asset Value 37.3% 34.3% - 38.2% Net Debt to EBITDA7 6.5x 5.7x - 6.3x 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 and presale 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 pages S-8 and S-9. 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 19 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-18 and S-19 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-13 for a reconciliation of EBITDA to net income, the most directly comparable GAAP measure. S-14


 
2019 Outlook - Summary1 ($ in thousands, except share and per share data) Low High Net income2 $ 74,600 $ 86,700 Noncontrolling interests 900 1,000 Depreciation and amortization 258,200 259,100 Funds from operations ("FFO") $ 333,700 $ 346,800 Elimination of operations from on-campus participating properties (14,100) (13,700) Contribution from on-campus participating properties 5,500 6,100 Transaction costs3 800 800 Funds from operations - modified ("FFOM") $ 325,900 $ 340,000 Net income per share - diluted $ 0.54 $ 0.62 FFO per share - diluted $ 2.40 $ 2.50 FFOM per share - diluted $ 2.35 $ 2.45 Weighted-average common shares outstanding - diluted 138,866,100 138,866,100 1. The company believes that the financial results for the fiscal year ending December 31, 2019 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 2019-2020 academic year; • the timing of 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 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 or the effect of transferring Blanton Common to the lender, as such will be eliminated for the purposes of calculating FFOM. 3. Represents transaction costs related to the closing of two presale development properties as disclosed on page S-9. S-15


 
2019 Outlook - Detail ($ in thousands, except share and per share data) FFO Guidance As Reported Current Guidance Assumptions & Other Three Months Ended  Year Ended  March 31, 2019 December 31, 2019 Low High Owned properties1: 2019 same store properties: Assumes academic year 2019/2020 opening same store rental revenue growth of 1.5% - 3.0%. Same store revenue2 $ 205,369 $ 797,700 $ 802,700 Update Note: % growth 3.1 % 2.2 % 2.9 % Same Store guidance updated to reflect: Same store operating expenses2 (84,837) (359,500) (356,500) - The reclassification of the provision for uncollectible accounts from operating expense to % growth 0.5 % 3.1 % 2.2 % revenue due to the adoption of the new GAAP lease accounting standard Same store net operating income ("NOI") $ 120,532 $ 438,200 $ 446,200 - Moved $1.2 million of same store NOI to NOI contribution from dispositions (associated with a % growth 5.1 % 1.5 % 3.4 % property now classified as held for sale) 2019 new properties NOI $ 12,443 $ 44,700 $ 45,900 3 2019 NOI contribution from dispositions and other 57 (100) (100) Includes NOI contributed from a held for sale property expected to be sold in the second quarter Total owned properties NOI $ 133,032 $ 482,800 $ 492,000 and recurring professional fees related to the operation of the ACC/Allianz joint venture. Third-party development services revenue $ 3,171 $ 13,400 $ 16,400 Third-party management services revenue4 $ 2,311 $ 12,800 $ 13,600 Third-party development and mgmt. services expenses4 $ (4,186) $ (20,100) $ (20,500) General and administrative expenses $ (7,315) $ (29,800) $ (30,500) Ground/facility leases expense $ (3,549) $ (14,100) $ (14,500) Less: OCPP ground/facility leases expense $ 882 $ 3,300 $ 3,700 Interest income5 $ 885 $ 3,600 $ 3,600 Interest expense3 $ (27,061) $(110,000) $(111,200) Net of $11.5 million of capitalized interest. Less: OCPP interest expense $ 1,303 $ 4,900 $ 4,900 Amortization of deferred financing costs5 $ (1,105) $ (4,700) $ (4,800) Corporate depreciation6 $ (1,222) $ (5,300) $ (5,300) OCPP overhead $ (401) $ (1,600) $ (1,600) Income tax provision $ (364) $ (1,100) $ (1,100) Joint Ventures ("JV"): For purposes of calculating NAV, the company excludes $16.9 million of existing JV partners' Existing JV partners' share of FFO7 $ (3,725) $ (11,200) $ (11,200) share of NOI. Speculative JV partner's share of FFO $ — $ (3,300) $ (400) Represents the anticipated sale of a minority JV interest in a portfolio of properties in the 3rd 8 quarter for proceeds of approximately $180 million at the low end and $90 million at the high end Contribution from OCPP $ 1,702 $ 5,500 $ 6,100 of guidance at the end of the 4th quarter. Transaction costs9 $ — $ 800 $ 800 Elimination of property in receivership3 $ 969 $ — $ — FFOM per share - diluted $ 0.69 $ 2.35 $ 2.45 1. Refer to page S-17 for detail of the 2019 same store and new property groupings. 2. Revised original guidance to reclassify the provision for uncollectible accounts from operating expenses to revenue, which had no effect on net operating income. 3. Actual results for the three months ended March 31, 2019 include the operating results of one property held in receivership that is eliminated when calculating FFOM and therefore was not included in original guidance estimates. 4. Includes approximately $3.2 million in reimbursed payroll costs as described on page S-11. 5. Excluding on-campus participating properties ("OCCPs") 6. Represents depreciation expenses not added back in the calculation of FFO as per the NAREIT definition of FFO. 7. Current guidance for the year ended December 31,2019 includes existing JV partners' share of net income of $2.7 million plus their share of real estate depreciation expense of $8.5 million for a total share of FFO of $11.2 million. 8. 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-18. 9. Represents transaction costs related to the closing of two presale development properties as disclosed on page S-9. S-16


 
Detail of Property Groupings As of March 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 144 86,717 144 86,717 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 Deliveries1 — 3,369 — 3,369 Total Owned Properties 144 86,717 18 15,996 154 93,702 8 9,011 Total # of Owned Properties Excluded2 3 Total Owned Design Beds Excluded2 1,404 Grand Total # of Owned Properties (All Groupings) 165 Grand Total Owned Design Beds (All Groupings) 104,117 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. The Disney College Program project will be delivered in multiple phases over several years with initial deliveries expected to occur in 2020 and full development completion in 2023. All phases are counted as one property in the table above. 2. Represents one property currently in receivership that is in the process of being transferred to the lender in settlement of the property's $27.4 million mortgage loan that matured in August 2017, and one property consisting of two phases for purposes of the property counts above that was classified as held for sale as of March 31, 2019. S-17


 
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-18


 
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 Owned 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. 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-19


 
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 jkilstein@argusresearch.com Jeffery Spector / Shirley Wu Bank of America / Merrill Lynch (646) 855-1363 / (646) 855-3081 jeff.spector@baml.com / s.wu@baml.com Daniel Bernstein / Louis Benedict Capital One (571) 835-7202 / (646) 231-9584 daniel.bernstein@capitalone.com / louis.benedict@capitalone.com Michael Bilerman / Nick Joseph Citigroup Equity Research (212) 816-1383 / (212) 816-1909 michael.bilerman@citi.com / nicholas.joseph@citi.com Derek Johnston / Tom Hennessy Deutsche Bank Securities, Inc. (212) 250-5683 / (212) 250-4063 derek.johnston@db.com / tom.hennessy@db.com Steve Sakwa / Samir Khanal Evercore ISI (212) 446-9462 / (212) 888-3796 steve.sakwa@evercoreisi.com / samir.khanal@evercoreisi.com Andrew Rosivach / Melissa Funk Goldman Sachs (212) 902-2796 / (801) 884-4127 andrew.rosivach@gs.com / melissa.funk@gs.com John Pawlowski / Alan Peterson Green Street Advisors (949) 640-8780 / (949) 640-8780 jpawlowski@greenstreetadvisors.com / apeterson@greenstreetadvisors.com Aaron Hecht JMP Securities (415) 835-3963 ahecht@jmpsecurities.com Anthony Paolone / Nikita Bely J.P. Morgan Securities (212) 622-6682 / (212) 622-0695 anthony.paolone@jpmorgan.com / nikita.bely@jpmorgan.com Jordan Sadler / Austin Wurschmidt KeyBanc Capital Markets (917) 368-2280 / (917) 368-2311 jsadler@key.com / awurschmidt@key.com Drew Babin / Alex Kubicek Robert W. Baird & Co. (610) 238-6634 / (414) 765-7311 dbabin@rwbaird.com / akubicek@rwbaird.com Alexander Goldfarb / Daniel Santos Sandler O'Neill + Partners, L.P. (212) 466-7937 / (212) 466-7927 agoldfarb@sandleroneill.com / dsantos@sandleroneill.com 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 rdennison@americancampus.com Austin, Texas 78738 www.americancampus.com S-20


 
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 2019 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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