Exhibit 99.2

 

 

First Quarter 2015

Supplemental Analyst Package

 

	Contact:
	Investor Relations
	704-496-2571
	Investor.Relations@CampusCrest.com

 

 

 

FIRST QUARTER 2015

SUPPLEMENTAL ANALYST PACKAGE

TABLE OF CONTENTS

 

Financial Highlights	3
Condensed Consolidated Balance Sheets	4
Condensed Consolidated Statements of Operations	5
Reconciliation of Net Income (Loss) Attributable to Common Stockholders to FFO, FFOA and Net Operating Income	6 - 7
Wholly Owned Grove Property Results of Operations	8
Quarterly Wholly Owned Grove Property Results of Operations	9
Same Store Wholly Owned Property Operating Expenses	10
Copper Beech Property Results of Operations	11
HSRE and Beaumont Joint Venture Property Results of Operations	12
Capital Structure as of March 31, 2015	13
Outstanding Debt and Maturity Schedule	14
Outstanding Debt and Maturity Schedule - Joint Venture	15
Portfolio Overview and Occupancy	16 - 18
Investor Information	19
Forward-Looking Statements	20

 

 

CAMPUS CREST COMMUNITIES

 

FINANCIAL HIGHLIGHTS (unaudited)

(in $000s, except per share and per bed data)

 

		Three Months Ended March 31,
		2015				2014				$ Change				% Change
Total revenues		$	40,329			$	24,711			$	15,618				63.2	%
NOI		$	22,896			$	13,995			$	8,901				63.6	%
Net income (loss) attributable to common stockholders 1, 2, 3		$	9,790			$	(1,987	)		$	11,777				n/a
Net income (loss) per share - basic		$	0.15			$	(0.03	)		$	0.18				n/a
Net income (loss) per share - diluted		$	0.14			$	(0.03	)		$	0.17				n/a
FFO		$	3,024			$	12,023			$	(8,999	)			(74.8	)%
FFO per share - basic		$	0.05			$	0.19			$	(0.14	)			(73.7	)%
FFO per share - diluted 4		$	0.05			$	0.19				n/a				n/a
FFOA		$	6,313			$	9,916			$	(3,603	)			(36.3	)%
FFOA per share - basic		$	0.10			$	0.15			$	(0.05	)			(35.0	)%
FFOA per share - diluted 4		$	0.10			$	0.15			$	(0.05	)			n/a
Debt to total market capitalization			57.1	%			40.6	%			n/a				16.5	%
Operating Statistics
Wholly Owned - Grove
Total RevPOB 5		$	549			$	526			$	23				4.4	%
Average Physical Occupancy 6			89.2	%			90.2	%			n/a				(1.0	)%
Wholly Owned - Copper Beech
Total RevPOB 5		$	473			$	473			$	0				0.0	%
Average Physical Occupancy 6			93.7	%			88.6	%			n/a				5.1	%

 

¹For the three months ended March 31, 2015 and 2014, results include certain equity in earnings (losses) in unconsolidated entities, severance, transaction costs and write offs of other corporate assets.

²For the three months ended March 31, 2015 and 2014, includes results from the Company’s investment in Copper Beech. The Company made its initial investment in Copper Beech on March 18, 2013 and subsequently made additional investments. On September 30, 2013, the Company entered into an amendment to the purchase and sale agreement that enabled the Company to acquire a 67% ownership interest in 28 operating properties, while deferring ownership in 7 properties until the Company exercises future purchase options. On August 18, 2014, the Company elected to not exercise the first purchase option and reverted to a 48% ownership interest in 35 operating properties. On January 30, 2015, the Company completed the initial closing of the Copper Beech transaction. As of March 31, 2015, the Company held a 100% interest in 26 Copper Beech properties and partial interest in 9 Copper Beech properties.

³For the period ended March 31, 2015, shares issuable upon settlement of the exchange feature of the Exchangeable Senior notes were dilutive and were included in the computation of diluted earnings per share based on the “if-converted” method. The computation of diluted earnings per share used net income adjusted for interest expense related to the Exchangeable Senior notes of $1.4 million and a share price equal to the March 31, 2015 ending share value of $7.16 per share. The effect of the inclusion of all potentially dilutive securities for 2014 would be anti-dilutive when computing diluted earnings per share. For the period ended and 2014, shares issuable upon settlement of the exchange feature of the Exchangeable Senior notes were anti-dilutive and were, hence, not included in the computation of diluted earnings per share based on the “if-converted” method.

⁴For the three months ended March 31, 2015, the effect of the inclusion of all potentially dilutive securities would be anti-dilutive when computing FFO per share. For the three months ended March 31, 2014, the effect of the inclusion of all potentially diluted securities would be anti-dilutive when computing FFO and FFOA per share. The computation of diluted FFOA per share used net income adjusted for interest expense related to the Exchangeable Senior notes of $1.4 million.

⁵Total revenue per occupied bed includes rental and service revenues.

⁶Average monthly occupancy.

 

 

CAMPUS CREST COMMUNITIES

 

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in $000s)

 

		March 31,				December 31,
		2015				2014
Assets
Investment in real estate, net:
Student housing properties1		$	1,506,297			$	935,962
Accumulated depreciation			(138,830	)			(128,121	)
Land and properties held for sale2			13,588				37,163
Land held for investment2			7,413				7,413
Investment in real estate, net			1,388,468				852,417
Investment in unconsolidated entities1			93,783				259,740
Cash and cash equivalents			35,260				15,240
Restricted cash3			8,045				5,429
Student receivables, net			2,857				1,587
Cost and earnings in excess of construction billings			618				3,887
Intangible assets, net4			21,030				-
Other assets			30,200				35,742
Total assets		$	1,580,261			$	1,174,042
Liabilities and equity
Liabilities:
Mortgage and construction loans		$	566,495			$	300,673
Line of credit and other debt			367,976				317,746
Accounts payable and accrued expenses			36,562				53,816
Construction billings in excess of cost and earnings			-				481
Other liabilities			43,121				22,092
Total liabilities			1,014,154				694,808
Equity:
Preferred stock		$	61			$	61
Common stock			648				648
Additional common and preferred paid-in capital			780,665				773,998
Accumulated deficit and distributions			(288,726	)			(301,566	)
Accumulated other comprehensive loss			(3,174	)			(2,616	)
Total stockholders' equity			489,474				470,525
Noncontrolling interests			76,633				8,709
Total equity			566,107				479,234
Total liabilities and equity		$	1,580,261			$	1,174,042

 

¹ As of March 31, 2015, the Company's 100% interest in 26 Copper Beech properties, pursuant to the initial closing of the Copper Beech transaction in January 2015, is included in "Student housing properties." In prior periods, the Company's investment in these properties was included in "Investment in unconsolidated entities."

²As of March 31, 2015, the Company owned five strategically held land parcels that could be used for the development of four phase two properties and one additional property, with an aggregate bed count ranging from approximately 1,000 to 1,500, and five land parcels which the Company intends to divest. The costs associated with the strategically held parcels are included in land held for investment.

³Restricted cash includes escrow accounts held by lenders for the purpose of paying taxes, insurance and funding capital improvements.

⁴Includes in-place leases from the Copper Beech transaction and the trademark for the Copper Beech brand name.

 

 

CAMPUS CREST COMMUNITIES

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in $000s, except per share data)

 

		Three Months Ended March 31,
		2015				2014				$ Change
Revenues:
Student housing rental		$	38,790			$	23,635			$	15,155
Student housing services			1,310				973				337
Property management services			229				103				126
Total revenues			40,329				24,711				15,618
Operating expenses:
Student housing operations			17,204				10,613				6,591
General and administrative			8,038				3,506				4,532
Severance1			508				-				508
Write-off of other assets			769				-				769
Transaction costs2			1,492				585				907
Ground leases			120				117				3
Depreciation and amortization			19,756				6,980				12,776
Total operating expenses			47,887				21,801				26,086
Equity in earnings (loss) of unconsolidated entities3,4			(2,149	)			319				(2,467	)
Operating income (loss)			(9,707	)			3,229				(12,936	)
Nonoperating income (expense):
Interest expense, net			(7,788	)			(3,376	)			(4,412	)
Gain on purchase of Copper Beech5			21,642				-				21,642
Gain on sale of assets6			7,748				-				7,748
Other income (expense)			(55	)			66				(121	)
Total nonoperating expense, net			21,547				(3,310	)			24,857
Net income (loss) before income tax benefit (expense)			11,840				(81	)			11,921
Income tax benefit (expense)			-				190				(190	)
Income (loss) from continuing operations			11,840				109				11,731
Income (loss) from discontinued operations7			(1,157	)			939				(2,096	)
Net income (loss)			10,683				1,048				9,635
Less: Dividends on preferred stock			3,050				3,050				-
Less: Net loss attributable to noncontrolling interests			(2,157	)			(15	)			(2,142	)
Net income (loss) attributable to common stockholders		$	9,790			$	(1,987	)		$	11,777
Per share data - basic
Income (loss) from continuing operations attributable to common stockholders		$	0.17			$	(0.04	)
Income (loss) from discontinued operations attributable to common stockholders		$	(0.02	)		$	0.01
Net income (loss) per share attributable to common stockholders		$	0.15			$	(0.03	)
Per share data - diluted8
Income (loss) from continuing operations attributable to common stockholders		$	0.15			$	(0.04	)
Income (loss) from discontinued operations attributable to common stockholders		$	(0.01	)		$	0.01
Net income (loss) per share attributable to common stockholders		$	0.14			$	(0.03	)
Weighted average common shares outstanding:
Basic			64,720				64,495
Diluted			78,686				64,929

 

¹For the three months ended March 31, 2015, severance includes termination benefits for former executives in connection with the Company's strategic repositioning.

²For the three months ended March 31, 2015 and 2014, includes $1,492 and $585, respectively, of transaction costs in connection with Copper Beech and CSH Montreal including our proportional share of costs incurred within the ventures.

³For the three months ended March 31, 2015 and 2014, includes results from the Company’s investment in Copper Beech. The Company made its initial investment in Copper Beech on March 18, 2013 and subsequently made additional investments. On September 30, 2013, the Company entered into an amendment to the purchase and sale agreement that enabled the Company to acquire a 67% ownership interest in 28 operating properties, while deferring ownership in 7 properties until the Company exercises future purchase options. On August 18, 2014, the Company elected to not exercise the first purchase option and reverted to a 48% interest ownership interest in 35 operating properties. On January 30, 2015, the Company completed the initial closing of the Copper Beech transaction. As of March 31, 2015, the Company held a 100% interest in 26 Copper Beech properties and partial interest in 9 Copper Beech properties.

⁴For the three months ended March 31, 2015, $1,800 equity in losses of unconsolidated entities were contributed from the Montreal operations.

⁵For the three months ended March 31, 2015, a gain of $21,642 was recognized in connection with the purchase of the First Copper Beech Closing, a business combination in which the Company acquired a significant portion of the CB Portfolio with the transaction closing on January 30, 2015.

⁶In connection with the previously announced strategic repositioning the Company recognized a $3.1 million gain from the sale of a portfolio of six undeveloped land parcels. The Company also recognized a $4.6 million gain from the sale of The Grove at Lawrence, Kansas and The Grove at Conway, Arkansas.

⁷For the three months ended March 31, 2015, the Company recorded an expense of $1.2 million related to the wind down of the Company's construction and development operations. For the three months ended March 31, 2014, the Company recorded revenue from its construction and development operations of $7.3 million and expenses of $6.3 million resulting in income of $0.9 million.

⁸For the period ended March 31, 2015, shares issuable upon settlement of the exchange feature of the Exchangeable Senior notes were dilutive and were included in the computation of diluted earnings per share based on the “if-converted” method. The computation of diluted earnings per share used net income adjusted for interest expense related to the Exchangeable Senior notes of $1.4 million and a share price equal to the March 31, 2015 ending share value of $7.16 per share. The effect of the inclusion of all potentially dilutive securities for 2014 would be anti-dilutive when computing diluted earnings per share. For the period ended and 2014, shares issuable upon settlement of the exchange feature of the Exchangeable Senior notes were anti-dilutive and were, hence, not included in the computation of diluted earnings per share based on the “if-converted” method.

 

 

CAMPUS CREST COMMUNITIES

 

RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS TO FUNDS FROM OPERATIONS ("FFO") & FUNDS FROM OPERATIONS ADJUSTED ("FFOA") (unaudited)

(in $000s, except per share data)

 

		Three Months Ended March 31,
		2015				2014				$ Change
Net income (loss) attributable to common stockholders		$	9,790			$	(1,987	)		$	11,777
Real estate related depreciation and amortization			19,254				6,677				12,577
Real estate related depreciation and amortization - unconsolidated entities			3,370				7,333				(3,963	)
Gain on sale of assets1			(7,748	)			-				(7,748	)
Gain on purchase of Copper Beech2			(21,642	)			-				(21,642	)
FFO available to common shares			3,024				12,023				(9,001	)
Elimination of the following:
Transaction costs3			1,492				585				907
Write-off of other assets			769				-				769
Severance			508				-				508
Discontinued operations4			1,157				(939	)			2,096
FV adjustment of CB debt5			(637	)			(1,754	)			1,117
Funds from operations adjusted (FFOA) available to common shares		$	6,313			$	9,916			$	(3,603	)
FFO per share - basic		$	0.05			$	0.19			$	(0.14	)
FFOA per share - basic		$	0.10			$	0.15			$	(0.05	)
FFO per share - diluted6		$	0.05			$	0.19			$	(0.14	)
FFOA per share - diluted6		$	0.10			$	0.15			$	(0.05	)
Weighted average common shares - basic			64,720				64,495
Weighted average common shares - diluted6			78,686				64,929

 

¹In connection with the previously announced strategic repositioning the Company recognized a $3.1 million gain from the sale of a portfolio of six undeveloped land parcels. The Company also recognized a $4.6 million gain from the sale of The Grove at Lawrence, Kansas and The Grove at Conway, Arkansas.

²For the three months ended March 31, 2015, a gain of $21,642 was recognized in connection with the purchase of the first Copper Beech closing, a business combination in which the Company acquired a significant portion of the CB Portfolio with the transaction closing on January 30, 2015.

³For the three months ended March 31, 2015 and March 31, 2014, includes $1,492 and $585, respectively, of transaction costs in connection with Copper Beech and CSH Montreal including our proportional share of costs incurred within the ventures.

⁴For the three months ended March 31, 2015, the Company recorded an expense of $1.2 million due to the wind down of our construction and development operations. For the three months ended March 31, 2014, the Company recorded revenue from our construction and development operations of $7.3 million and expenses of $6.3 million resulting in income of $0.9 million.

⁵Includes the Company proportionate share of provisional non-cash fair value of debt and other purchase accounting adjustments in our investment in Copper Beech. The fair value debt and purchase accounting adjustments included in equity in earnings related to Copper Beech were approximately $0.6 million and $1.8 million for the three months ended March 31, 2015 and 2014, respectively.

⁶For the three months ended March 31, 2015, the effect of the inclusion of all potentially dilutive securities would be anti-dilutive when computing FFO per share. For the three months ended March 31, 2014, the effect of the inclusion of all potentially dilutive securities would be anti-dilutive when computing FFO and FFOA per share. The computation of diluted FFOA per share used net income adjusted for interest expense related to the Exchangeable Senior notes of $1.4 million.

 

 

CAMPUS CREST COMMUNITIES

 

RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS TO NET OPERATING INCOME ("NOI") (unaudited)

(in $000s, except per share data)

 

		Three Months Ended March 31,
		20151				20141
Net income (loss) attributable to common stockholders		$	9,790			$	(1,987	)
Net loss attributable to noncontrolling interests			(2,157	)			(15	)
Preferred stock dividends			3,050				3,050
Income tax (benefit) expense			-				(190	)
Other (income) expense			55				(66	)
Gain on sale of assets			(7,748	)			-
Severance			508				-
Gain on purchase of Copper Beech			(21,642	)			-
(Income) loss on discontinued operations			1,157				(939	)
Interest expense			7,788				3,376
Equity in losses of unconsolidated entities			2,149				(319	)
Depreciation and amortization			19,756				6,980
Ground lease expense			120				117
General and administrative expense			8,038				3,506
Write-off of corporate other assets			769				-
Transaction costs			1,492				585
Property management services			(229	)			(103	)
Total NOI		$	22,896			$	13,995
Grove same store properties NOI2		$	13,602			$	12,814
Wholly owned Copper Beech properties NOI		$	5,884			$	-
New properties NOI3		$	2,689			$	422
Grove Pullman and Toledo NOI4		$	721			$	759

 

¹ "Same store" properties are the Company's wholly-owned operating properties acquired or placed in-service prior to the beginning of the earliest period presented and owned by the Company and remaining in service through the end of the latest period presented or period being analyzed. "New properties" are the Company's wholly-owned operating properties acquired or placed in service after the beginning of the earliest period presented or period being analyzed.

² Includes NOI contribution from Copper Beech at Ames. This is a consolidated joint venture property.

³For the three months ended March 31, 2015 and 2014, includes financial results for The Grove at Denton. The Company acquired its joint venture partner's interest in The Grove at Denton on January 21, 2014. The occupancy data and net operating income related to Denton are included in new properties. Of the $512 net operating income in March 31, 2014, $422 relates to the Company's 100% ownership and the remaining amount relates to the Company's joint venture ownership.

⁴ Includes NOI contribution from the operations of The Grove at Pullman and the Toledo, OH redevelopment, as well as business interruption insurance proceeds from The Grove at Pullman.

  

 

CAMPUS CREST COMMUNITIES

 

WHOLLY OWNED GROVE PROPERTY RESULTS OF OPERATIONS (unaudited)

(in $000s, except bed data)

 

		Three Months Ended March 31,
		2015				2014				Change				% Change
Same store properties (Number of properties)1, 2			30				30
Revenue per occupied bed
Rental revenue per occupied bed per month3		$	525			$	503			$	22				4.4	%
Services revenue per occupied bed per month			17				20				(3	)			(15.0	)%
Total revenue per occupied bed		$	542			$	524			$	19				3.5	%
Average number of owned beds			16,308				16,308
Average physical occupancy			90.7	%			90.1	%							0.6	%
Total revenue		$	24,075			$	23,089			$	986				4.3	%
Property operating expenses			10,473				10,275				198				1.9	%
Net operating income		$	13,602			$	12,814			$	788				6.1	%
Operating margin4			56.5	%			55.5	%							1.0	%
New properties (Number of properties)5, 6			6				1				5
Revenue per occupied bed
Rental revenue per occupied bed per month3		$	568			$	565			$	3				0.5	%
Services revenue per occupied bed per month			15				15				(0	)			0.0	%
Total revenue per occupied bed		$	583			$	580			$	3				0.5	%
Average number of owned beds			3,713				584
Average physical occupancy			82.6	%			91.6	%							(9.0	)%
Total revenue		$	5,368			$	931			$	4,437				476.6	%
Property operating expenses			2,679				420				2,259				538.5	%
Net operating income		$	2,689			$	512			$	2,176				425.2	%
Operating margin4			50.1	%			54.9	%							(4.8	)%
ALL PROPERTIES (Number of properties)			36				31				5
Revenue per occupied bed
Rental revenue per occupied bed per month3		$	533			$	506			$	27				5.4	%
Services revenue per occupied bed per month			17				20				(3	)			(15.0	)%
Total revenue per occupied bed		$	549			$	526			$	24				4.5	%
Average number of owned beds			20,021				16,892
Average physical occupancy			89.2	%			90.2	%							(1.0	)%
Total revenue		$	29,442			$	24,021			$	5,421				22.6	%
Property operating expenses			13,152				10,695				2,457				23.0	%
Net operating income		$	16,290			$	13,326			$	2,964				22.2	%
Operating margin4			55.3	%			55.5	%							(0.2	)%
The Grove at Pullman & Toledo NOI7		$	721			$	759			$	(38	)			(5.1	)%

 

¹Excludes financial results from The Grove at Pullman. On July 14, 2013, the Company experienced a fire at this property during development. As of March 2015, all 584 beds were in operation. For comparability of results, Pullman will continue to be excluded until year over year results are not impacted by the business interruption.

²Excludes financial results from the Toledo, OH redevelopment property the Company acquired on March 15, 2013.

³Beginning with the ‘14/’15 academic year, the Company recognizes revenue for new leases over the term of the lease (typically 11.5 months) rather than in conjunction with the lease payments (typically 12 equal monthly payments). While this policy change will have no cash impact, and will have minimal year-over-year impact on a go-forward basis, the adjustment has the effect of higher reported revenue in Q1 2015 as compared to prior year.

⁴Operating margin is calculated by dividing NOI for the period by total student housing rental and services revenues for the period.

⁵For the three months ended March 31, 2015 and 2014, includes financial results for The Grove at Denton. The Company acquired its joint venture partner's interest in The Grove at Denton on January 21, 2014. The occupancy data and net operating income related to Denton are included in new properties. Of the $512 net operating income in March 31, 2014, $422 relates to the Company's 100% ownership and the remaining amount relates to the Company's joint venture ownership.

⁶For the three months ended March 31, 2015, includes financial results for the 2014 wholly-owned and consolidated deliveries (The Grove at Gainesville, The Grove at Grand Forks, The Grove at Slippery Rock, The Grove at Mt. Pleasant and Copper Beech at Ames).

⁷Includes NOI contribution from the operations of The Grove at Pullman and the Toledo, OH redevelopment property.

 

 

CAMPUS CREST COMMUNITIES

 

QUARTERLY WHOLLY OWNED GROVE PROPERTY RESULTS OF OPERATIONS (unaudited)

(in $000s, except bed data)

 

		Three Months Ended
		March 31, 2014				June 30, 2014				September 30, 2014				December 31, 2014				March 31, 2015
Same store properties (Number of properties)1, 2			30				30				30				30				30
Revenue per occupied bed
Rental revenue per occupied bed per month3		$	503			$	500			$	505			$	512			$	525
Services revenue per occupied bed per month			20				21				21				15				17
Total revenue per occupied bed		$	523			$	521			$	526			$	527			$	542
Average number of owned beds			16,308				16,308				16,308				16,308				16,308
Average physical occupancy			90.1	%			89.8	%			90.1	%			91.6	%			90.7	%
Total revenue		$	23,089			$	22,901			$	23,171			$	24,120			$	24,075
Property operating expenses			10,275				10,269				10,940				10,388				10,473
Net operating income		$	12,814			$	12,632			$	12,231			$	13,732			$	13,602
Operating margin4			55.5	%			55.2	%			52.8	%			56.9	%			56.5	%
New properties (Number of properties)5, 6			1				1				6				6				6
Revenue per occupied bed
Rental revenue per occupied bed per month3		$	565			$	565			$	549			$	536			$	568
Services revenue per occupied bed per month			15				17				16				12				15
Total revenue per occupied bed		$	580			$	582			$	565			$	548			$	583
Average number of owned beds			584				584				2,654				3,705				3,713
Average physical occupancy			91.6	%			95.7	%			82.1	%			82.5	%			82.6	%
Total revenue		$	931			$	975			$	3,696			$	5,027			$	5,368
Property operating expenses			420				453				1,294				2,090				2,679
Net operating income		$	511			$	522			$	2,402			$	2,937			$	2,689
Operating margin4			54.9	%			53.5	%			65.0	%			58.4	%			50.1	%
ALL PROPERTIES (Number of properties)			31				31				36				36				36
Revenue per occupied bed
Rental revenue per occupied bed per month3		$	506			$	503			$	511			$	516			$	533
Services revenue per occupied bed per month			20				21				20				14				17
Total revenue per occupied bed		$	526			$	524			$	531			$	530			$	549
Average number of owned beds			16,892				16,892				18,962				20,013				20,021
Average physical occupancy			90.2	%			90.0	%			89.0	%			89.9	%			89.2	%
Total revenue		$	24,021			$	23,876			$	26,867			$	29,148			$	29,442
Property operating expenses			10,695				10,721				12,234				12,478				13,152
Net operating income		$	13,326			$	13,155			$	14,633			$	16,670			$	16,290
Operating margin4			55.5	%			55.1	%			54.5	%			57.2	%			55.3	%
The Grove at Pullman & Toledo NOI7		$	759			$	753			$	876			$	910			$	721

 

¹Excludes financial results from The Grove at Pullman. On July 14, 2013, the Company experienced a fire at this property during development. As of March 2015, all 584 beds were in operation. For comparability of results, Pullman will continue to be excluded until year over year results are not impacted by the business interruption.

²Excludes financial results from the Toledo, OH redevelopment property the Company acquired on March 15, 2013.

³Beginning with the ‘14/’15 academic year, the Company recognizes revenue for new leases over the term of the lease (typically 11.5 months) rather than in conjunction with the lease payments (typically 12 equal monthly payments). While this policy change will have no cash impact, and will have minimal year-over-year impact on a go-forward basis, the adjustment has the effect of higher reported revenue in Q1 2015 as compared to prior year.

⁴Operating margin is calculated by dividing NOI for the period by total student housing rental and services revenues for the period.

⁵For all periods except March 31, 2014 and June 30, 2014, includes financial results for the 2014 wholly-owned deliveries (The Grove at Gainesville, The Grove at Grand Forks, The Grove at Slippery Rock, The Grove at Mt. Pleasant and Copper Beech at Ames).

⁶For all periods, includes financial results for The Grove at Denton. The Company acquired its joint venture partner's interest in the Grove at Denton on January 21, 2014.

⁷Includes NOI contribution from the operations of The Grove at Pullman and the Toledo, OH redevelopment property.

 

 

CAMPUS CREST COMMUNITIES

 

SAME STORE WHOLLY OWNED GROVE PROPERTY OPERATING EXPENSES (unaudited)

(in $000s, except bed data)

 

		Three Months Ended March 31, 2015												Three Months Ended March 31, 2014												Y-o-Y Total Change
		Total				% of Total				Per Bed/Month				Total				% of Total				Per Bed/Month				$				%
Payroll		$	2,334				22.3	%		$	48			$	2,169				21.1	%		$	44			$	165				7.6	%
Marketing			262				2.5	%			5				303				2.9	%			6				(41	)			(13.6	)%
Office, Administration & Other			724				6.9	%			15				654				6.4	%			13				70				10.6	%
Bad Debt			515				4.9	%			11				358				3.5	%			7				157				43.9	%
Utilities			3,554				33.9	%			73				3,617				35.2	%			74				(63	)			(1.7	)%
Repairs and Maintenance1			678				6.5	%			14				973				9.5	%			20				(295	)			(30.3	)%
Taxes and Insurance			2,406				23.0	%			49				2,201				21.4	%			45				205				9.3	%
Total		$	10,473				100.0	%		$	214			$	10,275				100.0	%		$	210			$	197				1.9	%
Same Store
Wholly Owned Beds			16,308												16,308
Wholly Owned Properties			30												30

 

¹During the '14/'15 academic year, the Company changed its accounting policy in connection with turn expenses to recognize costs in the period in which they are incurred as compared to its previous policy of accounting for the costs of turn ratably over the twelve month academic year. As a result, on a going forward basis, expenses related to turn will be predominantly recognized during the third quarter of the year.

 

 

 

CAMPUS CREST COMMUNITIES

 

COPPER BEECH PROPERTY RESULTS OF OPERATIONS (unaudited)

(in $000s, except bed data)

 

		Three Months Ended March 31,
		2015				2014				Change				% Change
Wholly owned same store properties (Number of properties)1, 2			25				25				-
Revenue per occupied bed
Rental revenue per occupied bed per month		$	439			$	442			$	(3	)			(0.7	)%
Services revenue per occupied bed per month			34				31				3				9.7	%
Total revenue per occupied bed		$	473			$	473			$	0				0.0	%
Average number of owned beds			9,868				9,868
Average physical occupancy			93.7	%			88.6	%							5.1	%
Total revenue		$	13,129			$	12,412			$	717				5.8	%
Property operating expenses			5,285				5,139				146				2.8	%
Net operating income3		$	7,844			$	7,273			$	571				7.9	%
Operating margin4			59.7	%			58.6	%							1.1	%
Joint venture same store properties (Number of properties)5			9				9				-
Revenue per occupied bed
Rental revenue per occupied bed per month		$	504			$	499			$	5				1.0	%
Services revenue per occupied bed per month			37				39				(2	)			(5.4	)%
Total revenue per occupied bed		$	541			$	538			$	4				0.7	%
Average number of owned beds			5,995				5,995
Average physical occupancy			94.6	%			94.8	%							(0.2	)%
Total revenue		$	9,209			$	9,170			$	39				0.4	%
Property operating expenses			2,893				3,152				(259	)			(8.2	)%
Net operating income		$	6,316			$	6,018			$	298				4.9	%
Operating margin4			68.6	%			65.6	%							3.0	%

 

¹On January 30, 2015, the Company completed the initial closing of the Copper Beech transaction and acquired the sellers' remaining interest in 25 student housing properties of a portfolio consisting of 36 student housing properties. Remaining interest in Copper Beech at Ames was also acquired pursuant to the second amendment and has been included in the wholly owned Grove results of operations as it was historically a consolidated property.

²Excludes financial results from Copper Beech at Kalamazoo- Phase I. Pursuant to the initial closing of the Copper Beech transaction on January 30, 2015, the Company had no ownership interest in the property as of March 31, 2015.

³For the three months ended March 31, 2015, $5,884 and $1,960 were recorded as consolidated net operating income and investment in unconsolidated entities, respectively.

⁴Operating margin is calculated by dividing NOI for the period by total student housing rental and services revenues for the period.

⁵Includes financial results for Copper Beech at Indiana - IUP Buy, Copper Beech at San Marcos - Phase I, Copper Beech at Morgantown, Copper Beech at Harrisonburg, Copper Beech at State College - Parkway Plaza, Copper Beech at Greenville, Copper Beech at State College - Northbrook Greens, Copper Beech at West Lafayette - Klondike and Copper Beech at Kalamazoo - Phase II.

 

 

CAMPUS CREST COMMUNITIES

 

HSRE AND BEAUMONT JOINT VENTURE AND OTHER PROPERTY RESULTS OF OPERATIONS (unaudited)

(in $000s, except per bed data)

 

		Three Months Ended March 31,
		2015				2014				Change				% Change
HSRE AND BEAUMONT
Same store properties (Number of properties)1			6				6				-
Revenue per occupied bed
Rental revenue per occupied bed per month2		$	551			$	522			$	29				5.6	%
Services revenue per occupied bed per month			16				19				(3	)			(16.7	)%
Total revenue per occupied bed		$	567			$	541			$	26				4.9	%
Average number of owned beds			3,532				3,532
Average physical occupancy			79.3	%			77.3	%							2.0	%
Total revenue		$	4,764			$	4,428			$	336				7.6	%
Property operating expenses			2,419				2,266				153				6.7	%
Net operating income		$	2,345			$	2,162			$	183				8.5	%
Operating margin3			49.2	%			48.8	%							0.4	%
NEW PROPERTIES (Number of properties)1,4			5				0				5
Revenue per occupied bed
Rental revenue per occupied bed per month2		$	897			$	0			$	897				100.0	%
Services revenue per occupied bed per month			104				0				104				100.0	%
Total revenue per occupied bed		$	1,001			$	0			$	1,001				100.0	%
Average number of owned beds			4,277				0
Average physical occupancy			33.4	%			0.0	%							33.4	%
Total revenue		$	4,294			$	0			$	4,294				100.0	%
Property operating expenses			3,777				0				3,777				100.0	%
Net operating income		$	516			$	0			$	516				100.0	%
Operating margin3			12.0	%			0.0	%							12.0	%
ALL PROPERTIES (Number of properties)1,4			11				6				5
Revenue per occupied bed
Rental revenue per occupied bed per month2		$	668			$	522			$	146				28.0	%
Services revenue per occupied bed per month			45			$	19				26				136.8	%
Total revenue per occupied bed		$	713			$	541			$	172				31.9	%
Average number of owned beds			7,809				3,532				4,277				121.1	%
Average physical occupancy			54.2	%			77.3	%							(23.1	)%
Total revenue		$	9,058			$	4,428			$	4,630				104.6	%
Property operating expenses			6,197				2,266				3,931				173.5	%
Net operating income		$	2,861			$	2,162			$	699				32.4	%
Operating margin3			31.6	%			48.8	%							(17.2	)%
Preferred investments5, 6		$	7,323			$	2,682			$	4,640

 

¹Excludes The Grove at Denton; the Company acquired its joint venture partner's interest in this property on January 21, 2014. Also excludes financial results from The Grove at Stillwater, The Grove at Conway and The Grove at Lawrence. The properties were sold during 1Q 2015.

²Beginning with the ‘14/’15 academic year, the Company recognizes revenue for new leases over the term of the lease (typically 11.5 months) rather than in conjunction with the lease payments (typically 12 equal monthly payments). While this policy change will have no cash impact, and will have minimal year-over-year impact on a go-forward basis, the adjustment related to changing the policy has the effect of higher reported revenue in 1Q 2015 as compared to prior year.

³Operating margin is calculated by dividing NOI for the period by total student housing rental and services revenues for the period. Expenses include property management fees as compared to prior year.

 ⁴For the three months ended March 31, 2015, includes financial results for the 2014 joint venture deliveries (The Grove at Greensboro, The Grove at Louisville, evo at Cira Centre South, evo Centre-Ville and evo Vieux-Montreal)

⁵As of March 31, 2015, the Company held preferred investments in The Grove at Indiana, The Grove at Greensboro and The Grove at Louisville of approximately $7,323. These preferred interests entitle the Company to a 9.0% return on the investment but otherwise do not change its effective ownership interest in these properties.

⁶As of March 31, 2014, the Company held preferred investment in The Grove at Indiana of approximately $2,682. This preferred interest entitles the Company to a 9.0% return on the investment but otherwise does not change its effective ownership interest in this property.

 

 

CAMPUS CREST COMMUNITIES

 

CAPITAL STRUCTURE AS OF MARCH 31, 2015

(in $000s, except per share data)

 

Closing common stock price at March 31, 2015		$	7.16
Common stock			64,548
Operating partnership units			10,755
Restricted stock			172
Total shares and units outstanding			75,476
Total equity market value		$	540,407
Total preferred equity outstanding1			152,500
Total consolidated debt outstanding			923,752
Total market capitalization		$	1,616,659
Debt to total market capitalization3, 4			57.1	%
Debt to gross assets2, 3, 4			53.7	%
Total number of unencumbered operating properties			30

 

										Weighted				Average
		Principal				% of Total				Average				Years to
Wholly Owned Debt3, 4		Outstanding				Principal Outstanding				Interest Rate				Maturity
Fixed rate mortgage loans		$	376,311				40.7	%			5.45	%			3.0
Variable rate mortgage loan			16,549				1.8	%			2.33	%			1.9
Construction loans			162,914				17.6	%			2.33	%			1.4
Variable rate credit facility			263,500				28.5	%			2.68	%			1.5
Exchangeable notes5			97,588				10.6	%			5.53	%			3.6
Other debt6			6,888				0.7	%			3.59	%			13.1
Total/Weighted Average		$	923,752				100.0	%			4.05	%			2.4

 

¹8.00% Series A cumulative redeemable preferred stock redeemable February 2017.

²Gross assets is defined as total assets plus accumulated depreciation, as reported in the Company's March 31, 2015 consolidated balance sheet.

³Excludes debt associated with Copper Beech, HSRE and Beaumont joint ventures. See page 15 for details related to this debt. The Company is the guarantor of certain of these loans.

⁴Wholly owned debt reflects principal balance, excluding impact of fair value debt and purchase accounting adjustments as reflected on the consolidated balance sheet.

⁵Senior unsecured exchangeable notes, maturity in October 2018.

⁶Includes $4,503 Line of Credit assumed as part of the Copper Beech transaction and $2,308 bond assumed as a part of the purchase of the Flagstaff, AZ property.

 

 

CAMPUS CREST COMMUNITIES

 

OUTSTANDING DEBT AND MATURITY SCHEDULE

(in $000s)

 

		Principal Balance at								Maturity		Years to
Consolidated Debt		3/31/2015				Interest Rate				Date		Maturity				Notes
Corporate debt
Citi Credit facility & Term Loan		$	263,500				2.68	%		1/8/2017			1.8			One twelve month extension option
Exchangeable Notes1			97,588				5.53	%		10/9/2018			3.6
Other debt2			6,888				3.59	%		3/7/2028			13.1
Wholly Owned Construction loans - Grove
The Grove at Muncie, IN		$	13,892				2.43	%		7/3/2015			0.3			Two twelve month extension option
The Grove at Ft. Collins, CO			19,073				2.08	%		7/13/2015			0.3			Two twelve month extension option
The Grove at Pullman, WA			10,886				2.38	%		9/5/2015			0.4			Two twelve month extension option
The Grove at Slippery Rock, PA			17,738				2.33	%		6/21/2016			1.2			Two twelve month extension option
The Grove at Grand Forks, ND			15,414				2.18	%		2/5/2017			1.9			One eighteen month extension option
The Grove at Gainesville, FL			25,593				2.33	%		3/13/2017			2.0			Sixty to one hundred twenty days extension option
Copper Beech at Ames, IA			21,797				2.43	%		5/2/2017			2.1			Two twelve month extension option
Vivo at Toledo, OH			4,377				2.33	%		11/25/2017			2.7			Thirty to ninety days extension option
Wholly Owned Construction loans - Copper Beech
Statesboro, GA Phase II		$	9,274				2.68	%		11/1/2016			1.6
CMU Phase II—Mount Pleasant, MI			9,120				2.68	%		2/1/2017			1.9
Auburn, AL			15,750				2.18	%		2/6/2017			1.9
Sub Total3		$	162,914				2.33	%					1.4
Wholly Owned Mortgage loans - Grove
The Grove at Milledgeville, GA		$	15,583				6.12	%		10/1/2016			1.5			Principal and interest
The Grove at Carrollton, GA			14,050				6.13	%		10/11/2016			1.6			Principal and interest
The Grove at Las Cruces, NM			14,520				6.13	%		10/11/2016			1.6			Principal and interest
The Grove at Denton, TX			16,548				2.33	%		3/1/2017			1.9			Principal and interest, floating rate
The Grove at Asheville, NC			14,251				5.77	%		4/11/2017			2.1			Principal and interest
The Grove at Ellensburg, WA			15,784				5.10	%		9/1/2018			3.5			Principal and interest
The Grove at Nacogdoches, TX			16,791				5.01	%		9/1/2018			3.5			Principal and interest
The Grove at Greeley, CO			14,880				4.29	%		10/1/2018			3.6			Principal and interest
The Grove at Clarksville, TN			16,166				4.03	%		7/1/2022			7.4			Principal and interest
The Grove at Columbia, MO			22,622				3.83	%		7/1/2022			7.4			Principal and interest
The Grove at Statesboro, GA			18,046				4.01	%		1/1/2023			7.9			Principal and interest
Wholly Owned Mortgage loans - Copper Beech
IUP Phase II - Indiana		$	5,892				5.90	%		10/1/2015			0.5			Principal and interest
CMU Phase I - Mount Pleasant, MI			18,087				5.47	%		10/1/2015			0.5			Principal and interest
Bowling Green Phase I			12,217				5.63	%		10/1/2015			0.5			Principal and interest
Copper Beech I - State College			4,958				5.61	%		2/11/2016			0.9			Principal and interest
Bloomington			10,423				6.22	%		10/1/2016			1.5			Principal and interest
Allendale Phase I			22,776				5.98	%		10/1/2016			1.5			Principal and interest
Columbia, MO			23,530				6.22	%		10/1/2016			1.5			Principal and interest
Radford			11,890				5.99	%		11/6/2016			1.6			Principal and interest
IUP Phase I - Indiana			6,500				2.15	%		6/2/2017			2.2			Principal and interest
Allendale Phase II			11,556				6.27	%		9/6/2017			2.5			Principal and interest
Columbia, SC Phase I			35,881				6.27	%		9/6/2017			2.5			Principal and interest
Statesboro, GA Phase I			30,064				5.81	%		10/6/2017			2.6			Principal and interest
Copper Beech II - State College			8,413				5.97	%		8/1/2019			4.4			Principal and interest
Columbia, SC Phase II			5,888				5.41	%		8/1/2020			5.4			Principal and interest
Oakwood - State College			5,546				4.99	%		10/1/2020			5.6			Principal and interest
Sub Total3		$	392,860				5.32	%					3.0
Total / Weighted Average3		$	923,752				4.05	%					2.5

 

¹Senior unsecured exchangeable notes, maturity in October 2018.

²Includes $4,503 Line of Credit assumed as part of the Copper Beech transaction and $2,308 bond assumed as a part of the purchase of the Flagstaff, AZ property.

³Wholly owned debt reflects principal balance, excluding impact of fair value debt and purchase accounting adjustments as reflected on the consolidated balance sheet.

 

 

CAMPUS CREST COMMUNITIES

 

OUTSTANDING DEBT AND MATURITY SCHEDULE - JOINT VENTURE

(in $000s)

 

						Principal Balance								Maturity		Years to
Property		Ownership				3/31/2015				Interest Rate				Date		Maturity				Notes
The Grove at Norman, OK1			20.0	%			17,871				2.83	%		8/7/2015			0.4			Interest only
The Grove at Fayetteville, AR1			10.0	%			19,078				2.93	%		8/7/2015			0.4			Interest only
The Grove at Laramie, WY1			10.0	%			17,211				2.83	%		9/30/2015			0.5			Interest only
The Grove at San Angelo, TX1			50.0	%			11,166				2.68	%		9/30/2015			0.5			Interest only
The Grove at State College, PA1			20.0	%			18,619				2.23	%		9/30/2015			0.5			Interest only
Copper Beech at State College, PA - Parkway Plaza			48.0	%			18,188				5.24	%		10/1/2015			0.5			Interest only
The Grove at Indiana, PA1			20.0	%			17,217				2.43	%		12/19/2015			0.7			Interest only
evo Centre-Ville and evo Vieux-Montreal1			47.0	%			82,113				5.69	%		1/13/2016			0.8			Interest only
Copper Beech at Indiana, PA - IUP Buy			48.0	%			2,326				5.45	%		6/6/2016			1.2			Interest only
Copper Beech at Morgantown, WV			48.0	%			34,602				5.45	%		6/6/2016			1.2			Interest only
Copper Beech at Harrisonburg, VA			48.0	%			53,348				5.45	%		6/6/2016			1.2			Interest only
Copper Beech at San Marcos, TX - Phase I			48.0	%			32,981				5.45	%		6/6/2016			1.2			Interest only
evo at Cira Centre South1			30.0	%			90,081				2.38	%		7/25/2016			1.3			Interest only
The Grove at Louisville, KY1			30.0	%			24,151				2.43	%		9/6/2016			1.4			Interest only
The Grove at Greensboro, NC1			30.0	%			18,428				2.28	%		9/30/2018			3.5			Interest only
Copper Beech at Greenville, NC			48.0	%			46,542				5.34	%		9/1/2020			5.4			Interest only
Copper Beech at Kalamazoo, MI - Phase II			48.0	%			7,805				5.68	%		10/1/2020			5.5			Interest only
Total / Weighted Average						$	511,727				4.12	%					1.5

 

Note: The Company's pro rata share of HSRE and Beaumont joint venture debt as of March 31, 2015 was $98,346. Pro rata share of Copper Beech joint venture debt as of March 31, 2015 was $93,980.

¹Footnote indicates the Company is a guarantor of the loan.

 

 

CAMPUS CREST COMMUNITIES

 

GROVE PORTFOLIO OVERVIEW AND OCCUPANCY

 

																				Occupancy, as of
						Year Opened/														March 31,
Property		Grouping1		Primary University		Acquired		Properties				Units				Beds				2015				2014				Change
Wholly Owned Operating Properties - Grove
The Grove at Asheville, NC		(A)		UNC - Asheville		2005							154				448				97.5	%			99.6	%			(1.9	)%
The Grove at Carrollton, GA		(A)		University of West Georgia		2006							168				492				91.5	%			97.6	%			(6.1	)%
The Grove at Las Cruces, NM		(A)		New Mexico State University		2006							168				492				85.2	%			79.9	%			5.3	%
The Grove at Milledgeville, GA		(A)		Georgia College & State University		2006							168				492				99.4	%			97.8	%			1.6	%
The Grove at Abilene, TX		(A)		Abilene Christian University		2007							192				504				85.3	%			93.5	%			(8.2	)%
The Grove at Ellensburg, WA		(A)		Central Washington University		2007							192				504				97.6	%			96.8	%			0.8	%
The Grove at Greeley, CO		(A)		University of Northern Colorado		2007							192				504				98.2	%			99.0	%			(0.8	)%
The Grove at Mobile, AL—Phase I & II2		(A)		University of South Alabama		2007/2008							384				1,008				85.1	%			76.8	%			8.3	%
The Grove at Nacogdoches, TX—Phase I & II2		(A)		Stephen F. Austin State Univ.		2007/2012							260				682				81.2	%			85.6	%			(4.4	)%
The Grove at Cheney, WA		(A)		Eastern Washington University		2008							192				512				95.3	%			94.3	%			1.0	%
The Grove at Lubbock, TX		(A)		Texas Tech University		2008							192				504				92.5	%			92.7	%			(0.2	)%
The Grove at Stephenville, TX		(A)		Tarleton State University		2008							192				504				99.4	%			99.6	%			(0.2	)%
The Grove at Troy, AL		(A)		Troy University		2008							192				514				94.2	%			91.1	%			3.1	%
The Grove at Waco, TX		(A)		Baylor University		2008							192				504				89.9	%			88.3	%			1.6	%
The Grove at Murfreesboro, TN		(A)		Middle Tennessee State University		2009							186				504				95.4	%			95.4	%			0.0	%
The Grove at San Marcos, TX		(A)		Texas State University		2009							192				504				99.4	%			97.4	%			2.0	%
The Grove at Moscow, ID		(A)		University of Idaho		2009							192				504				85.3	%			96.2	%			(10.9	)%
The Grove at Huntsville, TX		(A)		Sam Houston State University		2010							192				504				99.6	%			98.6	%			1.0	%
The Grove at Statesboro, GA		(A)		Georgia Southern University		2010							200				536				85.4	%			70.5	%			14.9	%
The Grove at Ames, IA		(A)		Iowa State University		2011							216				584				96.4	%			98.6	%			(2.2	)%
The Grove at Clarksville, TN		(A)		Austin Peay State University		2011							208				560				70.4	%			78.6	%			(8.2	)%
The Grove at Columbia, MO		(A)		University of Missouri		2011							216				632				66.0	%			62.2	%			3.8	%
The Grove at Ft. Wayne, IN		(A)		Indiana University-Purdue University Ft. Wayne		2011							204				540				82.0	%			90.0	%			(8.0	)%
The Grove at Valdosta, GA		(A)		Valdosta State University		2011							216				584				88.0	%			88.2	%			(0.2	)%
The Grove at Denton, TX		(A)		University of North Texas		2011							216				584				100.5	%			94.5	%			6.0	%
The Grove at Auburn, AL		(A)		Auburn University		2012							216				600				99.0	%			99.0	%			0.0	%
The Grove at Flagstaff, AZ		(A)		Northern Arizona University		2012							216				584				97.4	%			98.8	%			(1.4	)%
The Grove at Orono, ME		(A)		University of Maine		2012							188				620				98.7	%			90.5	%			8.2	%
The Grove at Ft. Collins, CO		(A)		Colorado State University		2013							218				612				100.0	%			99.8	%			0.2	%
The Grove at Muncie, IN		(A)		Ball State University		2013							216				584				79.3	%			66.4	%			12.9	%
The Grove at Pullman, WA3		(A)		Washington State University		2013							216				584				98.6	%			46.1	%			52.5	%
The Grove at Flagstaff, AZ - Phase II2		(A)		Northern Arizona University		2013							54				192				97.9	%			99.5	%			(1.6	)%
The Grove at Gainesville, FL		(B)		University of Florida		2014							256				682				59.2	%			n/a				n/a
The Grove at Grand Forks, ND		(B)		University of North Dakota		2014							224				600				99.5	%			n/a				n/a
The Grove at Mt. Pleasant, MI		(B)		Central Michigan University		2014							224				584				74.8	%			n/a				n/a
The Grove at Slippery Rock, PA		(B)		Slippery Rock University		2014							201				603				85.4	%			n/a				n/a
Total - Wholly Owned Operating Properties - Grove									36				7,305				19,945				89.6	%			88.5	%			1.1	%

 

¹ Groupings detailed as follows: (A) reflects the same store properties as of March 31, 2015; (B) reflects the 2014 development deliveries.

²The Grove at Flagstaff, AZ - Phase I & II are counted as two properties in the Company's property count. The Grove at Nacogdoches, TX - Phase II and The Grove at Mobile, AL—Phase II are not counted as separate assets from Phase I of each respective asset.

³ On July 14, 2013, the Company experienced a fire at this development property. As of March 31, 2015, all 584 beds are in operation.

 

 

CAMPUS CREST COMMUNITIES

 

COPPER BEECH PORTFOLIO OVERVIEW AND OCCUPANCY¹

 

																				Occupancy, as of
						Year Opened/														March 31,
Property		Grouping1		Primary University		Acquired		Properties				Units				Beds				2015				2014				Change
Wholly Owned Operating Properties - Copper Beech
Copper Beech at Bloomington, IN - Colonial Crest		(A)		Indiana University		1970							206				402				79.6	%			81.1	%			(1.5	)%
Copper Beech at Indiana, PA - IUP I		(A)		Indiana University of Pennsylvania		1971							95				239				98.7	%			94.1	%			4.6	%
Copper Beech at Indiana, PA - IUP II		(A)		Indiana University of Pennsylvania		1973							72				172				100.0	%			91.9	%			8.1	%
Copper Beech at State College, PA - CB I		(A)		Penn State University		1996							59				177				100.0	%			89.8	%			10.2	%
Copper Beech at State College, PA - CB II		(A)		Penn State University		1998							87				257				100.0	%			94.2	%			5.8	%
Copper Beech at State College, PA - Oakwood		(A)		Penn State University		2000							48				144				100.0	%			77.1	%			22.9	%
Copper Beech at Harrisonburg, VA - Grand Duke		(A)		James Madison University		2001							120				124				99.2	%			96.8	%			2.4	%
Copper Beech at State College, PA - Oak Hill		(A)		Penn State University		2003							106				318				98.7	%			71.1	%			27.7	%
Copper Beech at West Lafayette, IN – Baywater		(A)		Purdue University		2004							137				488				86.5	%			98.6	%			(12.1	)%
Copper Beech at Radford, VA		(A)		Radford University		2005							222				500				99.0	%			99.8	%			(0.8	)%
Copper Beech at Bloomington, IN		(A)		Indiana University		2005							107				297				70.7	%			80.8	%			(10.1	)%
Copper Beech at Mount Pleasant, MI - Phase I		(A)		Central Michigan University		2005							204				632				96.8	%			100.0	%			(3.2	)%
Copper Beech at Bowling Green, OH - Phase I		(A)		Bowling Green University		2005							128				400				99.8	%			98.3	%			1.5	%
Copper Beech at Fresno, CA		(A)		California State University at Fresno		2006							178				506				94.5	%			95.1	%			(0.6	)%
Copper Beech at Allendale, MI - Phase I		(A)		Grand Valley State University		2006							206				614				99.7	%			99.7	%			0.0	%
Copper Beech at Columbia, MO		(A)		University of Missouri		2006							214				654				82.1	%			100.0	%			(17.9	)%
Copper Beech at Bowling Green, OH - Phase II		(A)		Bowling Green University		2007							72				216				99.5	%			99.1	%			0.5	%
Copper Beech at Allendale, MI - Phase II		(A)		Grand Valley State University		2007							82				290				100.0	%			98.3	%			1.7	%
Copper Beech at Columbia, SC - Phase I		(A)		University of South Carolina		2007							278				824				91.9	%			97.8	%			(5.9	)%
Copper Beech at Statesboro, GA - Phase I		(A)		Georgia Southern University		2007							246				754				94.3	%			65.9	%			28.4	%
Copper Beech at Columbia, SC - Phase II		(A)		University of South Carolina		2008							72				178				94.4	%			97.8	%			(3.4	)%
Copper Beech at Auburn, AL		(A)		Auburn University		2009							271				754				90.5	%			76.8	%			13.7	%
Copper Beech at San Marcos, TX - Phase II		(A)		Texas State University		2012							142				410				88.8	%			96.8	%			(8.0	)%
Copper Beech at Mount Pleasant, MI - Phase II		(A)		Central Michigan University		2013							119				256				98.8	%			35.5	%			63.3	%
Copper Beech at Statesboro, GA - Phase II		(A)		Georgia Southern University		2013							82				262				98.1	%			42.7	%			55.3	%
Copper Beech at Ames, IA		(B)		Iowa State University		2014							219				636				80.5	%			n/a				n/a
Sub-Total / Weighted Average									26				3,772				10,504				92.5	%			88.3	%			4.2	%
Joint Venture Operating Properties - Copper Beech
Copper Beech at State College, PA - Parkway Plaza		(A)		Penn State University		1967							429				633				98.9	%			89.1	%			9.8	%
Copper Beech at Indiana, PA - IUP Buy		(A)		Indiana University of Pennsylvania		1975							43				76				98.7	%			90.8	%			7.9	%
Copper Beech at State College, PA - Northbrook Greens		(A)		Penn State University		2003							166				250				100.0	%			99.2	%			0.8	%
Copper Beech at West Lafayette, IN – Klondike		(A)		Purdue University		2003							219				486				89.7	%			92.4	%			(2.7	)%
Copper Beech at Harrisonburg, VA		(A)		James Madison University		2008							414				1,218				99.5	%			99.8	%			(0.3	)%
Copper Beech at Greenville, NC		(A)		East Carolina University		2008							439				1,232				94.8	%			96.3	%			(1.5	)%
Copper Beech at Kalamazoo, MI - Phase II		(A)		Western Michigan University		2008							115				340				69.4	%			76.8	%			(7.4	)%
Copper Beech at Morgantown, WV		(A)		West Virginia University		2010							335				920				98.9	%			99.5	%			(0.5	)%
Copper Beech at San Marcos, TX - Phase I		(A)		Texas State University		2011							273				840				89.5	%			90.8	%			(1.3	)%
Total - Copper Beech Portfolio									35				6,205				16,499				93.2	%			90.7	%			2.5	%

 

¹ The Company made its initial investment in Copper Beech on March 18, 2013 and subsequently made additional investments. On September 30, 2013, the Company entered into an amendment to the purchase and sale agreement that enabled the Company to acquire a 67% ownership interest in 28 operating properties, while deferring ownership in seven properties until the Company exercises future purchase options. On August 18, 2014, the Company elected to not exercise the first purchase option and reverted to a 48% interest ownership interest in 35 operating properties. On January 30, 2015, the Company completed the initial closing of the Copper Beech transaction and acquired the sellers' remaining interest in 25 student housing properties of a portfolio consisting of 36 student housing properties. Remaining interest in Copper Beech at Ames was also acquired pursuant to the second amendment. As of March 31, 2015, the Company had 26 wholly owned operating properties and 9 joint venture operating properties.

 

 

CAMPUS CREST COMMUNITIES

 

HSRE AND BEAUMONT PORTFOLIO OVERVIEW AND OCCUPANCY (cont'd)

 

																				Occupancy, as of
						Year Opened/														March 31,
Property		Grouping1		Primary University		Acquired		Properties				Units				Beds				2015				2014				Change
HSRE and Beaumont Joint Venture Operating Properties
The Grove at San Angelo, TX		(A)		Angelo State University		2009							192				504				93.8	%			94.6	%			(0.8	)%
The Grove at Fayetteville, AR		(A)		University of Arkansas		2012							232				632				68.5	%			51.3	%			17.2	%
The Grove at Laramie, WY		(A)		University of Wyoming		2012							224				612				80.1	%			83.8	%			(3.8	)%
The Grove at Indiana, PA		(A)		Indiana University of Pennsylvania		2013							224				600				64.5	%			88.2	%			(23.7	)%
The Grove at Norman, OK		(A)		University of Oklahoma		2013							224				600				76.2	%			82.5	%			(6.3	)%
The Grove at State College, PA		(A)		Penn State University		2013							216				584				93.7	%			65.7	%			28.0	%
The Grove at Greensboro, NC		(B)		University of North Carolina at Greensboro		2014							216				584				56.0	%			n/a				n/a
The Grove at Louisville, KY		(B)		University of Louisville		2014							252				656				64.8	%			n/a				n/a
evo at Cira Centre South		(B)		University of Pennsylvania / Drexel University		2014							344				850				57.5	%			n/a				n/a
evo Centre-Ville		(B)		Concordia University / McGill University / (ÉTS)		2014							715				1,294				4.4	%			n/a				n/a
evo Vieux-Montreal		(B)		McGill University		2014							488				929				8.0	%			n/a				n/a
Total - Joint Venture Operating Properties									11				3,327				7,845				53.0	%			77.1	%			(24.0	)%
Total Operating Properties2									82				16,837				44,289				84.5	%			88.3	%			(3.9	)%
Same Store Properties (A)
Wholly-Owned									57				9,953				27,344				91.9	%			88.4	%			3.5	%
Joint Venture									15				3,745				9,527				88.7	%			88.1	%			0.6	%
Total - Same Store									72				13,698				36,871				91.1	%			88.3	%			2.7	%
2014 Deliveries (B)
Wholly-Owned									5				1,124				3,105				79.4	%			0.0	%			79.4	%
Joint Venture									5				2,015				4,313				31.8	%			0.0	%			31.8	%
Total - 2014 Deliveries									10				3,139				7,418				51.7	%			0.0	%			51.7	%

 

¹ Groupings detailed as follows: (A) reflects the same store properties as of March 31, 2015; (B) reflects the 2014 development deliveries.

² The redevelopment of the 100% owned property in Toledo, OH is excluded. The Grove at Denton is included for purposes of this presentation. The Company acquired its joint venture partner's interest in the Grove at Denton on January 21, 2014. The occupancy data related to Denton is included in 2014 deliveries.

 

 

CAMPUS CREST COMMUNITIES

 

INVESTOR INFORMATION

 

Executive Management
David Coles	Interim Chief Executive Officer
Aaron Halfacre	President and Chief Investment Officer
John Makuch	Interim Chief Financial Officer
Scott Rochon	Chief Accounting Officer

 

Corporate Headquarters		Investor Relations
2100 Rexford Road  #414		(704) 496-2571
Charlotte, NC 28211		investor.relations@campuscrest.com
(704) 496-2500

 

Covering Analysts
Barclays Capital Inc.	Ross Smotrich	(212) 526-2306	ross.smotrich@barclays.com
Citigroup Global Markets Inc.	Michael Bilerman / Nick Joseph	(212) 816-1383 / (212) 816-1909	michael.bilerman@citi.com / nicholas.joseph@citi.com
Raymond James & Associates	Paul D. Puryear / Buck Horne	(727) 567-2253 / (727) 567-2561	paul.puryear@raymondjames.com / buck.horne@raymondjames.com
Sidoti & Company, LLC	Jeff Lau	(212) 453-7029	jlau@sidoti.com
Bank of America Merrill Lynch	Jana Galan / Jane Wong	(646) 855-3081 / (646) 855-3378	jana.galan@baml.com / jane.wong1@baml.com
Wunderlich Securities	Craig Kucera	(540) 277-3366	ckucera@wundernet.com

 

 

CAMPUS CREST COMMUNITIES

 

FORWARD - LOOKING STATEMENTS

 

This document, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Forward-looking statements in this press release include, among others, the performance of properties in occupancy and yield targets, outlook and guidance for full year 2013 FFO and the related underlying assumptions, growth and development opportunities, leasing activities, financing strategies, and development and construction projects. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company’s control that may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect the Company’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, except as otherwise required by federal securities laws, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statements, see the risk factors discussed in the Company’s most recent Annual Report on Form 10-K, as updated in the Company’s Quarterly Reports on Form 10-Q.