Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - AMERICAN CAMPUS COMMUNITIES INC | q32016earningsrelease.htm |
| 8-K - 8-K - AMERICAN CAMPUS COMMUNITIES INC | form8-kq32016earningsrelea.htm |
Supplemental
Analyst Package
3Q 2016
October 24, 2016
Table of Contents
Financial Highlights 1
Consolidated Balance Sheets 2
Consolidated Statements of Comprehensive Income 3
Consolidated Statements of Funds from Operations 4
Wholly-Owned Properties Results of Operations 5
Same Store Wholly-Owned Properties Operating Expenses 6
Seasonality of Operations 7
Portfolio Overview 8
Investment Update 9
Owned Development Update 10
Third-Party Development Update 11
Management Services Update 12
Capital Structure 13
Interest Coverage 14
Capital Allocation – Long Term Funding Plan 15
2016 Outlook - Summary 16
2016 Outlook – Changes from Previous Guidance 17
Detail of Property Groupings 18
Definitions 19
Investor Information 21
Financial Highlights
($ in thousands, except share and per share data)
1
Operating Data Three Months Ended September 30, Nine Months Ended September 30,
2016 2015 $ Change % Change 2016 2015 $ Change % Change
Total revenues $ 196,411 $ 180,816 $ 15,595 8.6 % $ 582,389 $ 551,183 $ 31,206 5.7 %
Operating income 29,278 18,551 10,727 57.8 % 121,419 103,179 18,240 17.7 %
Net income attributable to ACC1 9,644 1,855 7,789 419.9 % 73,669 87,632 (13,963 ) -15.9 %
Net income per share - basic 0.07 0.01 0.57 0.78
Net income per share - diluted 0.07 0.01 0.56 0.77
Funds From Operations ("FFO")2 61,146 48,603 12,543 25.8 % 214,642 188,755 25,887 13.7 %
FFO per share - diluted2 0.46 0.42 0.04 9.5 % 1.65 1.66 (0.01 ) -0.6 %
Funds From Operations - Modified ("FFOM")2 60,441 48,696 11,745 24.1 % 210,804 189,963 20,841 11.0 %
FFOM per share - diluted2 0.45 0.43 0.02 4.7 % 1.62 1.67 (0.05 ) -3.0 %
Market Capitalization and Unsecured Notes Covenants3 September 30, 2016 December 31, 2015
Debt to total market capitalization 26.5% 38.2%
Net debt to EBITDA4 5.8x 7.4x
Unencumbered asset value to total asset value 76.7% 71.3%
Total debt to total asset value 34.0% 42.8%
Secured debt to total asset value 12.3% 15.4%
Unencumbered asset value to unsecured debt 352.9% 260.5%
Interest coverage4 4.4x 3.7x
1. Excluding net gains from dispositions of real estate, net loss attributable to ACC for the three months ended September 30, 2015 would have been $2.8 million. Excluding net gains from
dispositions of real estate and losses from the early extinguishment of debt, net income attributable to ACC for the nine months ended September 30, 2016 and 2015 would have been $56.3 million
and $36.7 million, respectively.
2. Refer to page 4 for a reconciliation to net income, the most directly comparable GAAP measure.
3. Refer to the definitions outlined on pages 19 and 20 for detailed definitions of terms appearing on this page.
4. Refer to calculations on page 14, including a reconciliation to net income and interest expense, the most directly comparable GAAP measures.
Consolidated Balance Sheets
($ in thousands)
2
September 30, 2016 December 31, 2015
(unaudited)
Assets
Investments in real estate:
Wholly-owned properties, net $ 5,348,258 $ 5,522,271
Wholly-owned properties held for sale 495,955 55,354
On-campus participating properties, net 87,212 90,129
Investments in real estate, net 5,931,425 5,667,754
Cash and cash equivalents 32,393 16,659
Restricted cash 29,649 33,675
Student contracts receivable, net 16,650 18,475
Other assets1 2 269,258 269,685
Total assets $ 6,279,375 $ 6,006,248
Liabilities and equity
Liabilities:
Secured mortgage, construction and bond debt2 $ 927,264 $ 1,094,962
Unsecured notes2 1,188,218 1,186,700
Unsecured term loans2 348,810 597,719
Unsecured revolving credit facility 20,000 68,900
Accounts payable and accrued expenses 77,247 71,988
Other liabilities3 199,887 144,811
Total liabilities 2,761,426 3,165,080
Redeemable noncontrolling interests 63,718 59,511
Equity:
American Campus Communities, Inc. and
Subsidiaries stockholders' equity:
Common stock 1,319 1,124
Additional paid in capital 4,095,452 3,325,806
Treasury stock (975 ) (403 )
Accumulated earnings and dividends (639,698 ) (550,501 )
Accumulated other comprehensive loss (5,992 ) (5,830 )
Total American Campus Communities, Inc. and
3,450,106 2,770,196 Subsidiaries stockholders' equity
Noncontrolling interests - partially owned properties 4,125 11,461
Total equity 3,454,231 2,781,657
Total liabilities and equity $ 6,279,375 $ 6,006,248
1. As of September 30, 2016, other assets include approximately $3.1 million related to net deferred financing costs on our revolving credit facility and the net value of in-place leases.
2. Beginning in 2016, deferred financing costs associated with secured mortgage, construction and bond debt, unsecured notes, and unsecured term loans are subject to new accounting guidance and are
presented as a direct reduction to the carrying value of the debt. Prior period amounts have been reclassified to conform to the current period presentation.
3. As of September 30, 2016, other liabilities include approximately $58.9 million in deferred revenue and fee income.
Consolidated Statements of Comprehensive Income
(Unaudited, $ in thousands, except share and per share data)
3
Three Months Ended September 30, Nine Months Ended September 30,
2016 2015 $ Change 2016 2015 $ Change
Revenues
Wholly-owned properties $ 185,694 $ 170,275 $ 15,419 $ 546,078 $ 517,641 $ 28,437
On-campus participating properties 6,758 6,565 193 23,018 21,469 1,549
Third-party development properties 773 937 (164 ) 3,929 3,178 751
Third-party management services 2,376 2,261 115 7,039 6,586 453
Resident services 810 778 32 2,325 2,309 16
Total revenues 196,411 180,816 15,595 582,389 551,183 31,206
Operating expenses
Wholly-owned properties 100,602 96,411 4,191 257,175 252,672 4,503
On-campus participating properties 3,784 3,557 227 10,125 9,167 958
Third-party development and management services 3,340 3,555 (215 ) 10,638 10,554 84
General and administrative 5,375 5,086 289 16,810 15,667 1,143
Depreciation and amortization 52,067 51,874 193 159,486 154,103 5,383
Ground/facility leases 1,965 1,782 183 6,736 5,841 895
Total operating expenses 167,133 162,265 4,868 460,970 448,004 12,966
Operating income 29,278 18,551 10,727 121,419 103,179 18,240
Nonoperating income and (expenses)
Interest income 1,272 1,099 173 4,026 3,296 730
Interest expense (19,016 ) (21,053 ) 2,037 (61,762 ) (63,627 ) 1,865
Amortization of deferred financing costs (1,344 ) (1,315 ) (29 ) (5,238 ) (4,032 ) (1,206 )
Gain from disposition of real estate — 4,657 (4,657 ) 17,409 52,699 (35,290 )
Loss from early extinguishment of debt — — — — (1,770 ) 1,770
Other nonoperating income — 388 (388 ) — 388 (388 )
Total nonoperating expense (19,088 ) (16,224 ) (2,864 ) (45,565 ) (13,046 ) (32,519 )
Income before income taxes 10,190 2,327 7,863 75,854 90,133 (14,279 )
Income tax provision (345 ) (311 ) (34 ) (1,035 ) (932 ) (103 )
Net income 9,845 2,016 7,829 74,819 89,201 (14,382 )
Net income attributable to noncontrolling interests (201 ) (161 ) (40 ) (1,150 ) (1,569 ) 419
Net income attributable to ACC, Inc. and
$ 9,644 $ 1,855 $ 7,789 $ 73,669 $ 87,632 $ (13,963 ) Subsidiaries common stockholders
Other comprehensive income (loss)
Change in fair value of interest rate swaps and other 1,271 (1,420 ) 2,691 (162 ) (2,443 ) 2,281
Comprehensive income $ 10,915 $ 435 $ 10,480 $ 73,507 $ 85,189 $ (11,682 )
Net income per share attributable to ACC, Inc.
and Subsidiaries common stockholders
Basic $ 0.07 $ 0.01 $ 0.57 $ 0.78
Diluted $ 0.07 $ 0.01 $ 0.56 $ 0.77
Weighted-average common shares outstanding
Basic 130,786,985 112,323,520 128,239,294 111,867,257
Diluted 131,568,371 112,980,208 129,034,401 113,911,864
Consolidated Statements of Funds from Operations
(Unaudited, $ in thousands, except share and per share data)
4
Three Months Ended September 30, Nine Months Ended September 30,
2016 2015 $ Change 2016 2015 $ Change
Net income attributable to ACC, Inc. and
$ 9,644 $ 1,855 $ 7,789 $ 73,669 $ 87,632 $ (13,963 ) Subsidiaries common stockholders
Noncontrolling interests 201 161 40 1,150 1,569 (419 )
Gain from disposition of real estate — (4,657 ) 4,657 (17,409 ) (52,699 ) 35,290
Real estate related depreciation and amortization 51,301 51,244 57 157,232 152,253 4,979
Funds from operations ("FFO") attributable to
61,146 48,603 12,543 214,642 188,755 25,887 common stockholders and OP unitholders
Elimination of operations of on-campus participating properties
Net loss (income) from on-campus participating properties 365 493 (128 ) (1,702 ) (1,206 ) (496 )
Amortization of investment in on-campus participating properties (1,839 ) (1,780 ) (59 ) (5,493 ) (5,231 ) (262 )
59,672 47,316 12,356 207,447 182,318 25,129
Modifications to reflect operational performance of on-campus
participating properties
Our share of net cashflow1 351 468 (117 ) 2,216 2,082 134
Management fees 304 289 15 1,027 957 70
Contribution from on-campus participating properties 655 757 (102 ) 3,243 3,039 204
Property acquisition costs 114 623 (509 ) 114 2,836 (2,722 )
Elimination of loss from early extinguishment of debt2 — — — — 1,770 (1,770 )
Funds from operations-modified ("FFOM") attributable to
$ 60,441 $ 48,696 $ 11,745 $ 210,804 $ 189,963 $ 20,841 common stockholders and OP unitholders
FFO per share - diluted $ 0.46 $ 0.42 $ 1.65 $ 1.66
FFOM per share - diluted $ 0.45 $ 0.43 $ 1.62 $ 1.67
Weighted-average common shares outstanding - diluted 132,877,380 114,532,290 130,407,761 114,021,780
1. 50% of the properties’ net cash available for distribution after payment of operating expenses, debt service (including repayment of principal) and capital expenditures. Represents amounts accrued for
the interim periods, which is included in ground/facility leases expense in the consolidated statements of comprehensive income (refer to page 3).
2. Represents losses associated with the early pay-off of mortgage loans for four properties sold during the nine months ended September 30, 2015. Such costs are excluded from gains from disposition
of real estate reported in accordance with GAAP. However, we view the losses from early extinguishment of debt associated with the sales of real estate as an incremental cost of the sale transactions
because we extinguished the debt in connection with the consummation of the sale transactions and we had no intent to extinguish the debt absent such transactions. We believe that adjusting FFOM
to exclude these losses more appropriately reflects the results of our operations exclusive of the impact of our disposition transactions.
Wholly-Owned Properties Results of Operations
($ in thousands)
5
Three Months Ended September 30, Nine Months Ended September 30,
2016 2015 $ Change % Change 2016 2015 $ Change % Change
Wholly-owned properties revenues
Same store properties $ 143,705 $ 138,283 $ 5,422 3.9 % $ 428,915 $ 415,223 $ 13,692 3.3 %
New properties 23,169 9,704 13,465 59,587 20,243 39,344
Sold and held for sale properties1 19,630 23,066 (3,436 ) 59,901 84,484 (24,583 )
Total revenues2 $ 186,504 $ 171,053 $ 15,451 9.0 % $ 548,403 $ 519,950 $ 28,453 5.5 %
Wholly-owned properties operating expenses
Same store properties3 $ 77,763 $ 75,510 $ 2,253 3.0 % $ 201,892 $ 196,826 $ 5,066 2.6 %
New properties 11,201 6,939 4,262 25,186 13,625 11,561
Sold and held for sale properties1 4 11,638 13,962 (2,324 ) 30,097 42,221 (12,124 )
Total operating expenses $ 100,602 $ 96,411 $ 4,191 4.3 % $ 257,175 $ 252,672 $ 4,503 1.8 %
Wholly-owned properties net operating income
Same store properties $ 65,942 $ 62,773 $ 3,169 5.0 % $ 227,023 $ 218,397 $ 8,626 3.9 %
New properties 11,968 2,765 9,203 34,401 6,618 27,783
Sold and held for sale properties1 7,992 9,104 (1,112 ) 29,804 42,263 (12,459 )
Total net operating income $ 85,902 $ 74,642 $ 11,260 15.1 % $ 291,228 $ 267,278 $ 23,950 9.0 %
Note: The same store grouping above represents properties owned and operating for both of the entire years ended December 31, 2016 and 2015, which are not conducting or planning to conduct
substantial development or redevelopment activities, and are not classified as held for sale as of September 30, 2016. Refer to page 18 for detail of our same store groupings.
1. Includes 20 properties sold in 2015, along with two properties sold during the first nine months of 2016, which are disclosed on page 9. Also includes 19 properties classified as held for sale as of
September 30, 2016. One of these properties consists of two phases that are counted separately in the property portfolio numbers listed on page 18.
2. Includes revenues that are reflected as Resident Services Revenue on the accompanying consolidated statements of comprehensive income.
3. See page 6 for detail of same store operating expenses.
4. Does not include the allocation of payroll and other administrative costs related to corporate management and oversight.
Same Store Wholly-Owned Properties Operating Expenses
($ in thousands, except per bed amounts)
6
Three Months Ended September 30,
2016 2015
Total Per Bed
% Change
From Prior
Year
% of Total
Operating
Expenses Total Per Bed
% of Total
Operating
Expenses
General & administrative and other1 $ 16,167 $ 239 5.0 % 21 % $ 15,393 $ 228 20 %
Property taxes2 14,842 219 6.4 % 19 % 13,950 206 18 %
Utilities3 14,909 220 6.0 % 19 % 14,069 208 19 %
Payroll4 15,170 224 1.2 % 19 % 14,983 221 20 %
Repairs and maintenance5 12,850 190 -4.1 % 17 % 13,402 198 18 %
Marketing6 2,421 36 4.1 % 3 % 2,325 34 3 %
Insurance 1,404 21 1.2 % 2 % 1,388 21 2 %
Total same store wholly-owned operating expenses $ 77,763 $ 1,149 3.0 % 100 % $ 75,510 $ 1,116 100 %
Weighted average same store wholly-owned beds 67,650
Nine Months Ended September 30,
2016 2015
Total Per Bed
% Change
From Prior
Year
% of Total
Operating
Expenses Total Per Bed
% of Total
Operating
Expenses
General & administrative and other1 $ 44,012 $ 651 4.0 % 22 % $ 42,334 $ 626 22 %
Property taxes2 43,906 648 5.7 % 22 % 41,529 614 21 %
Utilities3 42,418 627 1.7 % 21 % 41,720 616 21 %
Payroll4 39,380 582 0.6 % 20 % 39,130 578 20 %
Repairs and maintenance5 21,122 312 -0.9 % 10 % 21,319 315 11 %
Marketing6 6,883 102 8.5 % 3 % 6,344 94 3 %
Insurance 4,171 62 -6.3 % 2 % 4,450 66 2 %
Total same store wholly-owned operating expenses $ 201,892 $ 2,984 2.6 % 100 % $ 196,826 $ 2,909 100 %
Weighted average same store wholly-owned beds 67,650
Note: The same store grouping above represents properties owned and operating for both of the entire years ended December 31, 2016 and 2015, which are not conducting or planning to conduct substantial
development or redevelopment activities, and are not classified as held for sale as of September 30, 2016. Refer to page 18 for detail of our same store groupings.
1. Includes 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, bad debt, food service, and other miscellaneous expenses.
2. The increase over the prior year is primarily due to additional property tax expense resulting from higher than anticipated property tax assessments in various markets.
3. Represents gross expenses prior to any recoveries from tenants, which are reflected in wholly-owned properties revenues.
4. Includes payroll and related expenses for on-site personnel including general managers, maintenance staff, and leasing staff.
5. 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. The decrease when compared to the prior period is primarily related to one-time occurrences at three properties during the three
months ended September 30, 2015.
6. Includes costs related to property marketing campaigns associated with our annual leasing efforts. The increase over the prior year is primarily related to planned promotional expenses aimed at achieving our
leasing targets for the 2016/2017 academic year.
Seasonality of Operations
($ in thousands, except per bed amounts)
7
Three Months Ended
Total/Weighted Average-
September 30, 2015 December 31, 2015 March 31, 2016 June 30, 2016 September 30, 2016 Last 12 Months
2016 same store properties
Revenue per occupied bed
Rental revenue per occupied bed per month $ 671 $ 691 $ 687 $ 675 $ 685 $ 685
Other income per occupied bed per month1 76 54 54 65 84 64
Total revenue per occupied bed $ 747 $ 745 $ 741 $ 740 $ 769 $ 749
Average number of owned beds 67,650 67,650 67,650 67,650 67,650 67,650
Average physical occupancy for the quarter 91.2 % 98.0 % 97.8 % 92.0 % 92.1 % 94.9 %
Total revenue $ 138,283 $ 148,196 $ 147,119 $ 138,091 $ 143,705 $ 577,111
Property operating expenses 75,510 62,440 62,063 62,066 77,763 264,332
Net operating income $ 62,773 $ 85,756 $ 85,056 $ 76,025 $ 65,942 $ 312,779
Operating margin 45.4 % 57.9 % 57.8 % 55.1 % 45.9 % 54.2 %
2016 new properties
Revenue per occupied bed
Rental revenue per occupied bed per month $ 649 $ 787 $ 784 $ 785 $ 829 $ 799
Other income per occupied bed per month1 98 74 71 69 83 74
Total revenue per occupied bed $ 747 $ 861 $ 855 $ 854 $ 912 $ 873
Average number of owned beds 5,263 7,738 7,738 7,738 9,466 8,170
Average physical occupancy for the quarter 82.3 % 90.5 % 91.7 % 91.9 % 89.5 % 90.8 %
Total revenue $ 9,704 $ 18,097 $ 18,195 $ 18,223 $ 23,169 $ 77,684
Property operating expenses 6,939 7,117 7,108 6,877 11,201 32,303
Net operating income $ 2,765 $ 10,980 $ 11,087 $ 11,346 $ 11,968 $ 45,381
Operating margin 28.5 % 60.7 % 60.9 % 62.3 % 51.7 % 58.4 %
ALL PROPERTIES
Revenue per occupied bed
Rental revenue per occupied bed per month $ 669 $ 700 $ 698 $ 685 $ 703 $ 696
Other income per occupied bed per month1 78 56 56 66 84 66
Total revenue per occupied bed $ 747 $ 756 $ 754 $ 751 $ 787 $ 762
Average number of owned beds 72,913 75,388 75,388 75,388 77,116 75,820
Average physical occupancy for the quarter 90.6 % 97.2 % 97.0 % 92.0 % 91.7 % 94.5 %
Total revenue $ 147,987 $ 166,293 $ 165,314 $ 156,314 $ 166,874 $ 654,795
Property operating expenses 82,449 69,557 69,171 68,943 88,964 296,635
Net operating income $ 65,538 $ 96,736 $ 96,143 $ 87,371 $ 77,910 $ 358,160
Operating margin 44.3 % 58.2 % 58.2 % 55.9 % 46.7 % 54.7 %
Sold and held for sale properties2
Total revenue $ 23,066 $ 21,775 $ 21,190 $ 19,081 $ 19,630 $ 81,676
Property operating expenses3 13,962 9,607 9,680 8,779 11,638 39,704
Net operating income $ 9,104 $ 12,168 $ 11,510 $ 10,302 $ 7,992 $ 41,972
Note: The same store grouping above represents properties owned and operating for both of the entire years ended December 31, 2016 and 2015, which are not conducting or planning to conduct substantial development or
redevelopment activities, and are not classified as held for sale as of September 30, 2016. Refer to page 18 for detail of our same store groupings.
1. 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, etc.
2. Includes 20 properties sold in 2015, along with two properties sold during the first nine months of 2016, which are disclosed on page 9. Also includes 19 properties classified as held for sale as of September 30, 2016. One of these
properties consists of two phases that are counted separately in the property portfolio numbers listed on page 18.
3. Does not include the allocation of payroll and other administrative costs related to corporate management and oversight.
Portfolio Overview
8
Rental Revenue per
Physical Occupancy at Fall 2016 Occupied Bed for
Design September 30, Occupancy Final Rental Revenue Academic Year1
Property Type Beds 2016 2015 Change Rate Change Change 2016 / 2017 2015 / 2016
2017 Same Store Wholly-owned Properties
Final Fall 2015 occupancy of 98% or greater 53,388 98.8% 99.7% -0.9% 4.2% 3.3% $ 723 $ 694
Final Fall 2015 occupancy between 95% and 98% 9,704 95.3% 96.8% -1.5% 2.8% 1.3% 727 707
Final Fall 2015 occupancy less than 95% 12,296 92.9% 85.0% 7.9% 1.0% 8.9% 728 721
Subtotal - 2017 Same Store Wholly-owned Properties2 75,388 97.4% 97.0% 0.4% 3.5% 3.9% $ 724 $ 700
New Wholly-owned Properties
2016 Acquisition Property3 546 97.6% n/a n/a n/a n/a $ 639 n/a
2016 Development Deliveries4 5 3,191 90.9% n/a n/a n/a n/a 792 n/a
Subtotal - New Wholly-owned Properties 3,737 91.9% n/a n/a n/a n/a $ 769 n/a
Total - Wholly-owned Properties 79,125 97.1% n/a n/a n/a n/a $ 726 n/a
Held for Sale Wholly-owned Properties6 12,083 94.2% 96.2% -2.0% 0.4% -1.6% $ 511 $ 509
On Campus Participating Properties 5,086 97.9% 99.3% -1.4%
Note: The same store grouping presented above for purposes of disclosing the final leasing status for the 2016/2017 academic year represents properties that will be classified as same store properties in
2017. Refer to page 18 for detail of our same store groupings.
1. Represents average rental revenue per occupied bed for the academic years presented.
2. When including assets classified as held for sale, the company achieved same store wholly-owned occupancy of 96.9 percent as of September 30, 2016 compared to 96.8 percent for the same date
prior year, with an average rental rate increase of 3.3 percent.
3. Includes one wholly-owned property acquired during the third quarter of 2016. Refer to page 9 for additional information about this property acquisition.
4. Includes seven wholly-owned properties that completed construction and opened for occupancy in August and September 2016. Refer to page 10 for more information about these development
properties.
5. Excluding Merwick Stanworth Phase II, a community which will serve faculty and staff members of Princeton University and is expected to stabilize in a manner consistent with a multi-family property
during the first academic year, consistent with the first phase Merwick Stanworth development, the company’s 2016 development deliveries occupancy is 97.4 percent.
6. Includes 19 properties classified as held for sale as of September 30, 2016 that are anticipated to be sold in the fourth quarter 2016 subject to the satisfaction of various contingencies and closing
conditions. One of these properties consists of two phases that are counted separately in the property portfolio numbers listed on page 18.
Investment Update
($ in thousands)
9
ACQUISITIONS
Assumed
Project Location Primary University Served Beds Closing Date Purchase Price Mortgage Debt
University Crossings - Charlotte Charlotte, NC University of North Carolina - Charlotte 546 August 31, 2016 $ —
U Point Syracuse, NY Syracuse University 163 October 13, 2016 —
709 $ 63,100 $ —
DISPOSITIONS
Outstanding
Project Location Primary University Served Beds Closing Date Sales Price Mortgage Debt
The Edge - Orlando Orlando, FL University of Central Florida 930 March 11, 2016 $ —
University Village - Sacramento Sacramento, CA California State Univ. - Sacramento 394 March 24, 2016 —
1,324 $ 73,800 $ —
HELD FOR SALE1
Anticipated Outstanding
Project Location Primary University Served Beds Closing Date2 Sales Price Mortgage Debt3
Abbott Place East Lansing, MI Michigan State University 654 $ —
Burbank Commons Baton Rouge, LA Louisiana State University 532 —
Campus Corner Bloomington, IN Indiana University 796 —
Campus Way Tuscaloosa, AL University of Alabama 680 —
Forest Village and Woodlake Columbia, MO University of Missouri 704 —
Garnet River Walk West Columbia, SC University of South Carolina 476 16,615
Grindstone Canyon Columbia, MO University of Missouri 384 13,739
Lions Crossing State College, PA Penn State University 696 —
Nittany Crossing State College, PA Penn State University 684 —
Pirates Place Townhomes Greenville, NC East Carolina University 528 4,095
The Centre Kalamazoo, MI Western Michigan University 700 19,875
The Cottages of Baton Rouge Baton Rouge, LA Louisiana State University 1,290 62,304
The Cottages of Columbia Columbia, MO University of Missouri 513 19,403
U Club Cottages Baton Rouge, LA Louisiana State University 308 15,363
University Club & The Grove4 Tallahassee, FL Florida State University 736 —
University Crescent Baton Rouge, LA Louisiana State University 612 24,150
University Heights Birmingham, AL University of Alabama at Birmingham 528 —
University Manor Greenville, NC East Carolina University 600 —
University Oaks Columbia, SC University of South Carolina 662 22,150
12,083 Q4 2016 $ 508,000 $ 197,694
1. This portfolio of properties has met all necessary criteria required to be classified as held for sale under generally accepted accounting principles (GAAP) as of September 30, 2016. The net book value of these
properties is included in wholly-owned properties held for sale on the consolidated balance sheet as of September 30, 2016 (refer to page 2).
2. The closing of the transaction is subject to the satisfaction of various contingencies and closing conditions.
3. All outstanding mortgage debt will be paid off by the Company prior to the anticipated closing date.
4. Consists of two phases that are counted separately in the property portfolio numbers listed on page 18.
Owned Development Update
($ in thousands)
10
RECENTLY COMPLETED PROJECTS
Project Total Project Opened for
Project Location Primary University Served Type Beds Costs1 Occupancy
Currie Hall Los Angeles, CA University of Southern California ACE 456 $ 51,400 August 2016
Fairview House Indianapolis, IN Butler University ACE 633 40,100 August 2016
University Pointe Louisville, KY University of Louisville ACE 531 44,500 August 2016
Merwick Stanworth Phase II2 Princeton, NJ Princeton University ACE 379 48,600 September 2016
U Club on 28th Boulder, CO University of Colorado Off-Campus 398 55,400 August 2016
U Club Sunnyside Morgantown, WV West Virginia University Off-Campus 534 47,100 August 2016
The Court at Stadium Centre3 Tallahassee, FL Florida State University Off-Campus 260 27,800 August 2016
3,191 $ 314,900
OWNED DEVELOPMENT PROJECTS UNDER CONSTRUCTION
As of September 30, 2016
Project Estimated Land and Total Costs Scheduled
Project Location Primary University Served Type Beds Project Cost1 CIP4 Other5 Incurred Completion
Arizona State Univ. Res. Hall Tempe, AZ Arizona State University ACE 1,594 $ 107,800 $ 47,491 $ — $ 47,491 August 2017
Sky View Flagstaff, AZ Northern Arizona University ACE 626 56,600 20,176 236 20,412 August 2017
University Square Prairie View, TX Prairie View A&M University ACE 466 26,800 9,426 — 9,426 August 2017
U Centre on Turner Columbia, MO University of Missouri Off-Campus 718 69,100 25,296 14,005 39,301 August 2017
U Pointe on Speight Waco, TX Baylor University Off-Campus 700 49,800 15,891 4,705 20,596 August 2017
21Hundred @ Overton Park Lubbock, TX Texas Tech University Off-Campus 1,204 81,600 31,352 16,772 48,124 August 2017
Suites at 3rd Champaign, IL University of Illinois Off-campus 251 25,000 4,373 831 5,204 August 2017
U Club Binghamton Binghamton, NY SUNY Binghamton University Off-campus 562 55,800 13,217 12,232 25,449 August 2017
Callaway House Apartments6 Norman, OK University of Oklahoma Off-campus 915 89,100 30,015 12,651 42,666 August 2017
U Centre on College6 Clemson, SC Clemson University Off-campus 418 41,500 18,250 1 18,251 August 2017
SUBTOTAL - 2017 DELIVERIES 7,454 $ 603,100 $ 215,487 $ 61,433 $ 276,920
Virginia Commonwealth Univ. Richmond, VA Virginia Commonwealth Univ. ACE 1,524 $ 95,700 $ 5,233 $ — $ 5,233 August 2018
Butler University Phase II7 Indianapolis, IN Butler University ACE 648 38,900 — 1,291 1,291 August 2018
SUBTOTAL - 2018 DELIVERIES 2,172 $ 134,600 $ 5,233 $ 1,291 $ 6,524
OWNED DEVELOPMENT PIPELINE8
Project Anticipated Approx. Estimated Targeted
Project Location Primary University Served Type Commencement Targeted Beds Project Cost1 9 Completion
Univ. of California, Berkeley Berkeley, CA University of California, Berkeley ACE Q4 2016 783 $ 94,000 Fall 2018 / Fall 2019
Northeastern University Boston, MA Northeastern University ACE Q1 2017 798 150,000 Fall 2019
Carbondale Development Carbondale, IL Southern Illinois University Off-campus TBD 650 32,000 TBD
2,231 $ 276,000
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. The Total and Estimated Project Cost excludes the costs of the construction of such facilities, as they will be reimbursed by the universities.
2. This community will serve faculty and staff members of Princeton University and, unlike student housing communities, this property is expected to stabilize in a manner consistent with a multi-family property during the first academic year.
3. In conjunction with the purchase of Stadium Centre in July 2015, we entered into a presale agreement to purchase The Court at Stadium Centre, an adjacent property, which was completed in August 2016. We completed the purchase of the
property in May 2016 and the property opened for operations in August 2016.
4. The total construction in progress (“CIP”) balance above excludes $2.9 million related to ongoing renovation projects at operating properties.
5. Consists of amounts incurred to purchase the land for off-campus development projects, as well as other development-related expenditures not included in CIP such as deposits, furniture, etc.
6. In June 2016, we secured two in-process development projects which were part of the broader University House Communities Group, Inc. transaction.
7. Commenced construction in October 2016.
8. Does not include undeveloped land parcels in eight university markets totaling $40.1 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.
9. Estimated Project Cost includes land and other predevelopment costs of $8.4 million incurred as of September 30, 2016 for owned development pipeline projects.
Third-Party Development Update
($ in thousands)
11
Three Months Ended September 30, Nine Months Ended September 30,
2016 2015 $ Change 2016 2015 $ Change
Development services revenue $ 773 $ 937 $ (164 ) $ 3,929 $ 3,178 $ 751
% of total revenue 0.4 % 0.5 % 0.7 % 0.6 %
RECENTLY COMPLETED PROJECTS
Project Location Primary University Served Beds Total Fees Completed
The Nest Chicago, IL Northeastern Illinois University 440 $ 2,100 August 2016
CONTRACTED PROJECTS IN PROGRESS
Fees Earned Fees Remaining Fees
as of Earned in as of Scheduled
Project Location Primary University Served Beds Total Fees September 30, 2016 Current Year September 30, 2016 Completion
Oregon State Univ. Cascades Bend, OR Oregon State University 340 $ 1,900 $ 1,559 $ 540 $ 341 December 2016
Momentum Village Phase II Corpus Christi, TX Texas A&M University Corpus Christi 560 2,300 1,400 1,400 900 August 2017
Esperanza Hall San Antonio, TX Texas A&M University San Antonio 382 1,100 636 636 464 August 2017
1,282 $ 5,300 $ 3,595 $ 2,576 $ 1,705
1. These awards relate to speculative development projects that are subject to final determination of feasibility, negotiation, final award, procurement rules and other applicable law, execution and closing of
definitive agreements on terms acceptable to the company, and fluctuations in the construction and financing markets. Anticipated commencement and fees are dependent upon the availability of project
financing, which is affected by current capital market conditions.
2. Under the terms of a Consultant Agreement, and with the consent of the University’s Board of Regents, we will earn fees for the performance of advisory services related to a not-for-profit entity’s purchase of a
1,790-bed apartment community for the benefit of the University.
ON-CAMPUS AWARD PIPELINE1
Anticipated Anticipated Targeted Estimated
Project Location Financing Structure Commencement Completion Fees
Texas A&M University Corpus Christi2 Corpus Christi, TX Third-party n/a Q4 2016 / Q1 2017 $1,400
Arizona State Univ. Apartments Tempe, AZ ACE TBD Q3 / Q4 2018 n/a
Northern Kentucky University Highland Heights, KY Third-party TBD Fall 2018 / Fall 2019 TBD
Louisville Village Site Louisville, KY ACE TBD Fall 2019 n/a
La Salle University Philadelphia, PA Third-party TBD Fall 2019 TBD
Management Services Update
($ in thousands)
12
Three Months Ended September 30, Nine Months Ended September 30,
2016 2015 $ Change 2016 2015 $ Change
Management services revenue $ 2,376 $ 2,261 $ 115 $ 7,039 $ 6,586 $ 453
% of total revenue 1.2 % 1.3 % 1.2 % 1.2 %
NEW / PENDING MANAGEMENT CONTRACTS
Actual or
Approximate Stabilized Anticipated
Project Location Primary University Served Beds Annual Fees1 Commencement
The Nest Chicago, IL Northeastern Illinois University 440 $ 170 August 2016
Garden Village2 Berkeley, CA University of California, Berkeley 236 120 August 2016
Centennial Place Toronto, Canada Centennial College 742 170 September 2016
Collegeview Commons3 Ontario, Canada Conestoga College 487 50 September 2016
Parkside Toronto, Canada Ryerson University 597 173 November 2016
Texas A&M University Corpus Christi Corpus Christi, TX Texas A&M University Corpus Christi 1,790 480 Q4 2016/Q1 2017
Momentum Village Phase II Corpus Christi, TX Texas A&M University Corpus Christi 560 180 August 2017
Esperanza Hall San Antonio, TX Texas A&M University San Antonio 382 100 August 2017
Collegeview Commons Phase II Ontario, Canada Conestoga College 513 50 September 2017
5,747 $ 1,493
DISCONTINUED MANAGEMENT CONTRACTS
2016 Fee
Contribution
Prior to
Project Location Primary University Served Beds Termination Discontinued As Of
3170 & 3190 Donnelly Windsor, Ontario University of Windsor 117 $ 4 April 2016
675 Richmond London, Ontario University of Western Ontario 451 16 April 2016
West Village Suites Hamilton, Ontario McMaster University 449 45 July 2016
The Luxe Waterloo, Ontario University of Waterloo 955 92 July 2016
Village Suites Oshawa, Ontario Durham College 588 51 July 2016
Centennial Toronto, Canada Centennial College 368 42 September 2016
2,928 $ 250
1. Stabilized annual fees are dependent upon the achievement of anticipated occupancy levels.
2. The stabilized annual fee amount does not include an initial operations fee of $40,000 earned in August 2016. Subsequent to August 2016, the stabilized annual fee will be approximately $120,000
per year.
3. The stabilized annual fee amount does not include an initial operations fee of $90,000 earned from December 2015 through August 2016. Subsequent to August 2016, the stabilized annual fee will
be approximately $50,000 per year.
Capital Structure as of September 30, 2016
($ in millions, except per share data)
13
Market Capitalization & Unsecured Notes Covenants Debt Maturity Schedule
Total Debt1 $ 2,460
Total Equity Market Value2 $ 6,809
Total Market Capitalization $ 9,269
Debt to Total Market Capitalization 26.5%
Net Debt to EBITDA3 5.8x
Total Asset Value4 $ 7,229
Unencumbered Asset Value $ 5,541
Unencumbered Asset Value to Total Asset Value 76.7%
Requirement Current Ratio
Total Debt to Total Asset Value ≤ 60% 34.0%
Secured Debt to Total Asset Value ≤ 40% 12.3%
Unencumbered Asset Value to Unsecured Debt > 150% 352.9%
Interest Coverage3 > 1.5x 4.4x
Weighted Average
Principal Average Term To
Outstanding Interest Rate Maturity
Fixed Rate Mortgage Loans $ 784 5.0%5 4.1 Yrs
Unsecured Revolving Credit Facility 20 1.8% 1.4 Yrs
Unsecured Term Loans 350 2.0% 2.0 Yrs
Unsecured Notes 1,200 3.8% 6.1 Yrs
On-Campus Participating Properties 106 5.1% 15.5 Yrs
Total/Weighted Average $ 2,460 4.0% 5.2 Yrs
Variable Rate Debt as % of Total Debt6 0.8 %
Note – refer to the definitions outlined on pages 19 and 20 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 $41.9 million, unamortized original issue discount on unsecured notes of $2.0 million, and unamortized deferred
financing costs of $15.9 million.
2. Based on share price of $50.87 and fully diluted share count of 133,858,709 as of September 30, 2016. Assumes conversion of 1,252,559 common and preferred Operating Partnership units and 778,726 unvested restricted
stock awards.
3. Refer to calculations on page 14, including a reconciliation to net income and interest expense, the most directly comparable GAAP measures.
4. Excludes accumulated depreciation of $1.0 billion and receivables and intangible assets, net of accumulated amortization, of $51.8 million.
5. Including the amortization of net debt premiums related to mortgage loans assumed in connection with property acquisitions, the effective interest rate for fixed rate mortgage loans is 3.7%.
6. The company’s variable rate debt consists of the unsecured revolving credit facility.
Weighted Average Interest Rate Of Debt Maturing Each Year
Fixed Rate
Mortgage
Loans
6.6% 5.8% 4.2% - 5.6% 5.4% 4.1% 7.2% 4.5% 3.7%
Total
Debt
6.6% 3.5% 3.9% - 3.6% 4.2% 4.1% 4.0% 4.3% 4.6%
Interest Coverage
($ in thousands)
14
Three Months Ended
December 31, March 31, June 30, September 30, Last Twelve
2015 2016 2016 2016 Months
Net income attributable to ACC, Inc. and Subsidiaries common stockholders $ 28,359 $ 45,587 $ 18,438 $ 9,644 $ 102,028
Net income attributable to noncontrolling interests 501 622 327 201 1,651
Interest expense 24,162 22,627 20,119 19,016 85,924
Income tax provision 310 345 345 345 1,345
Depreciation and amortization 54,685 53,716 53,703 52,067 214,171
Amortization of deferred financing costs 1,518 2,542 1,352 1,344 6,756
Share-based compensation 2,481 2,651 2,842 2,328 10,302
Gain from disposition of real estate — (17,409 ) — — (17,409 )
Earnings Before Interest, Taxes, Depreciation,
and Amortization ("EBITDA") $ 112,016 $ 110,681 $ 97,126 $ 84,945 $ 404,768
Pro-forma adjustments to EBITDA1 17,110
Adjusted EBITDA $ 421,878
Interest Expense from consolidated statement of comprehensive income $ 24,162 $ 22,627 $ 20,119 $ 19,016 $ 85,924
Amortization of mortgage debt premiums/discounts 3,150 3,236 3,188 3,104 12,678
Capitalized interest 1,461 2,090 3,565 3,301 10,417
Change in accrued interest payable (4,366 ) 4,884 (4,275 ) (1,778 ) (5,535 )
Cash Interest Expense $ 24,407 $ 32,837 $ 22,597 $ 23,643 $ 103,484
Pro-forma adjustments to Cash Interest Expense1 (8,357 )
Adjusted Interest Expense $ 95,127
Interest Coverage 4.4x
Note: refer to the definitions outlined on pages 19 and 20 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.
Capital Allocation – Long Term Funding Plan
($ in millions)
15
Sources and Uses for Development - As of September 30, 2016
Estimated Development Capital Uses:
Estimated Project Total Costs Remaining
Development Pipeline1 Cost Incurred Capital Needs
2017 Developments Underway or Expected to Start in Current Year $ 603 $ 277 $ 326
2018 Developments Expected to Start in Current Year 229 9 220
Total $ 832 $ 286 $ 546
Estimated Sources:
Capital Sources
Cash and Cash Equivalents $ 32
Estimated Cash Flow Available for Investment - through 20182 110
Remaining Targeted Asset Dispositions3 508 - 530
Total $650 - $672
Selected Credit Metrics4
Credit Metric: September 30, 2016 Pro Forma5
Total Debt to Total Asset Value 34.0% 32.3% - 32.6%
Net Debt to EBITDA6 5.8x 5.2x - 5.3x
Note: This analysis demonstrates anticipated funding for the developments currently underway or with expected starts in the current year. As future developments commence,
they are expected to be funded via additional dispositions, free cash available for investment, and capital market transactions.
1. Includes development projects under construction, and management’s Estimated Project Cost for future development deliveries that are expected to commence construction during the current
year, as disclosed on page 10. Estimated Project Cost for 2018 developments includes one project not yet under construction: Univ. of California, Berkeley ($94.0 million). If we elect to move
forward with additional developments, we would commence construction in future years.
2. Available cash flow is derived from disclosure in our 2015 Form 10-K and is calculated as net cash provided by operating activities of $261.0 million less dividend payments of $178.5 million, less
principal payments on debt of $14.5 million, less recurring capital expenditures of $19.4 million. Calculation results in available cash flow for investment in 2015 of $49.0 million, which is then
annualized over the remaining 9 quarters through the end of 2018.
3. Remaining targeted dispositions represent non-core assets strategically targeted for disposition as part of the company’s capital recycling program, which include the 19 properties currently
classified as held for sale and anticipated to close in the fourth quarter of 2016 subject to the satisfaction of various contingencies and closing conditions, and two other non-core assets the
company is currently marketing for potential sale in early 2017.
4. Refer to definitions outlined on pages 19 and 20 for detailed definitions of terms appearing on this page.
5. Ratios represent the pro forma impact of dispositions and development deliveries assumed in the Sources and Uses table. Yields for developments range from 6.5% - 7.0% and the nominal
capitalization rate range of non-core student housing asset dispositions is assumed to be 6.4%. Actual ratios will vary based on the timing of dispositions versus the timing of construction funding.
6. Refer to page 14 for a reconciliation of EBITDA to net income, the most directly comparable GAAP measure.
2016 Outlook – Summary1
($ in thousands, except share and per-share data)
16
Prior Current2
Low High Low High
Net income3 $ 108,500 $ 118,800 $ 113,400 $ 118,700
Noncontrolling interests 1,150 1,300 1,800 1,900
Gain from disposition of real estate4 (17,400 ) (17,400 ) (17,400 ) (17,400 )
Depreciation and amortization 202,250 206,800 203,600 203,600
Funds from operations ("FFO") $ 294,500 $ 309,500 $ 301,400 $ 306,800
Elimination of operations from on-campus
participating properties (11,000 ) (11,400 ) (12,300 ) (12,300 )
Contribution from on-campus participating properties 3,800 4,400 4,400 4,500
Acquisition transaction costs — — 100 100
Funds from operations - modified ("FFOM") $ 287,300 $ 302,500 $ 293,600 $ 299,100
Net income per share - diluted $ 0.83 $ 0.91 $ 0.86 $ 0.90
FFO per share - diluted $ 2.25 $ 2.36 $ 2.29 $ 2.33
FFOM per share - diluted $ 2.19 $ 2.31 $ 2.23 $ 2.27
Weighted-average common shares outstanding -
diluted5 130,950,000 130,950,000 131,500,000 131,500,000
1. The company believes that the financial results for the fiscal year ending December 31, 2016 may be affected by, among other factors:
• national and regional economic trends and events;
• the timing of acquisitions and/or dispositions;
• interest rate risk;
• the timing of commencement 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. Refer to page 17 for details on changes in assumptions used to determine the revised guidance range.
3. Excludes loss from early extinguishment of debt and gain from disposition related to properties classified as held for sale as of September 30, 2016, which are anticipated to be sold in the fourth
quarter of 2016 subject to the satisfaction of various contingencies and closing conditions.
4. Represents gains from two properties disposed of during the nine months ended September 30, 2016.
5. Revised to reflect the issuance of common stock through the company's at-the-market share offering program (ATM Equity Program).
2016 Outlook – Changes From Previous Guidance
($ in thousands, except share and per share data)
17
2016 Property Net Operating Income Prior Current Significant Changes From Previous Guidance
Low High Low High
Total wholly-owned properties net operating income $ 395,200 $ 410,900 $ 399,100 $ 404,000 Property net operating income revised to reflect:
2016 same store net operating income growth1 2.0% 3.8% 3.3% 3.6% • Completion of lease-up for 2016/2017 academic year and year to date property operating
performance. AY 2016/2017 final leasing results - occupancy1 96.75% 98.75% 97.4%
AY 2016/2017 final leasing results - rental rate1 3.25% 2.75% 3.5% • Differences in the timing and amount of anticipated disposition activity are expected to
result in approximately $2.0 million of additional wholly-owned properties net operating
income at the low-end of the guidance range and $4.8 million less net operating income at
the high-end of the guidance range. Both the prior and current guidance ranges include
$74 million of disposition activity completed in the first quarter 2016, which contributed
$1.1 million of wholly-owned properties net operating income. The prior guidance range
for dispositions assumed an additional $526 million of dispositions on October 1, 2016 at
the low-end, and an additional $126 million of dispositions on December 1, 2016 at the
high-end. The current guidance has been updated to reflect an additional $508 million of
dispositions on October 31, 2016 at the low-end, and on November 30, 2016 at the high-
end. The anticipated disposition properties are expected to contribute $32 million and
$35.4 million of wholly-owned properties net operating income for the full year 2016 at the
low-end and high-end, respectively.
Dispositions $ 600,000 $ 200,000 $582,0002
Development deliveries $ 280,900 $ 280,900 $287,100
Mezzanine/pre-sale purchases $ 27,900 $ 27,900 $27,800
Third-party Services Prior Current
Low High Low High Revision to third-party development services revenue relates primarily to the timing of
recognition of the $1.4 million fee for the Texas A&M University Corpus Christi consulting
agreement. The prior guidance range assumed the transaction closing during 2016 at the
low-end and at the high-end. The current guidance range has been updated to reflect an
anticipated closing of the transaction in the first quarter of 2017 at the low-end.
Third-party development services revenue $ 5,200 $ 5,200 $ 4,300 $ 5,800
Third-party management services revenue 9,900 9,800 9,600 9,400
Third-party dev. and mgmt services expenses (16,500 ) (15,100 ) (14,600 ) (14,400 )
The prior guidance range for third-party management services revenue assumed we would
provide management services for a majority of the sold properties in the low-end of the
guidance range, subsequent to their disposition. The low-end and the high-end of the
current guidance range assume we will provide management services for only a portion of
the sold properties, and has been updated to reflect the revised disposition timing
assumptions discussed above.
Corporate Expenses and Other Prior Current
Low High Low High
Net income:
General and administrative expenses $ 22,700 $ 22,900 $ 22,500 $ 22,700
Ground/facility leases expense:
ACE properties 6,000 6,000 6,100 6,100
On-campus participating properties 2,500 2,900 2,900 3,000
Interest expense and amortization of deferred financing costs have been revised to reflect
differences in the timing and amount of dispositions as discussed above. The low-end and
the high-end of the range assume the extinguishment of $197.7 million of fixed rate
mortgage loans with an effective interest rate of 4.1%.
Total ground/facility leases expense 8,500 8,900 9,000 9,100
Interest income 5,300 4,600 5,200 5,200
Interest expense3 74,400 76,200 73,900 74,600
Capitalized interest 10,700 10,900 11,900 11,900
Amortization of deferred financing costs 6,300 6,400 6,400 6,400
Income tax provision 1,400 1,400 1,400 1,400
FFOM:
Corporate depreciation 3,500 3,300 3,200 3,100
Contribution from on-campus participating properties 3,800 4,400 4,400 4,500
1. In the prior guidance, our same store net operating income and leasing guidance represents properties that are owned and operating for both of the entire years ended December 31, 2016 and 2015, and which are not conducting or planning
to conduct substantial development or redevelopment activities. Our current same store guidance assumptions reflect the same store properties included in our prior guidance, but now excludes 19 properties that are classified as held for sale
as of September 30, 2016. Refer to page 18 for detail of our same store groupings.
2. Includes two properties sold during the first quarter of 2016, along with 19 properties currently classified as held for sale and anticipated to close in the fourth quarter of 2016 subject to the satisfaction of various contingencies and closing
conditions. Excludes two other non-core assets the company is currently marketing for potential sale in early 2017.
3. Net of capitalized interest and excluding on-campus participating properties.
Detail of Property Groupings
As of September 30, 2016
18
2016 Grouping 2017 Grouping 2018 Grouping
Same Store Properties New Properties Same Store Properties New Properties Same Store Properties New Properties
# of Design # of Design # of Design # of Design # of Design # of Design
Properties Beds Properties Beds Properties Beds Properties Beds Properties Beds Properties Beds
Properties Purchased or Developed
Prior to January 1, 2015 114 67,650 114 67,650 114 67,650
2015 Acquisition Properties 7 3,535 7 3,535 7 3,535
2015 Development Deliveries 4 3,187 4 3,187 4 3,187
2015 Redevelopment Property 1 1,016 1 1,016 1 1,016
2016 Development Deliveries 7 3,191 7 3,191 7 3,191
2016 Acquisition Property 1 546 1 546 1 546
2017 Development Deliveries 10 7,454 10 7,454 10 7,454
2018 Development Deliveries 1 1,524 1 1,524 1 1,524
Total Wholly-owned Properties 114 67,650 31 20,453 126 75,388 19 12,715 134 79,125 11 8,978
Total # Held for Sale Wholly-owned Properties1 20
Total Held for Sale Wholly-owned Design Beds 12,083
Grand Total # of Wholly-owned Properties (All Groupings) 165
Grand Total Wholly-owned Design Beds (All Groupings) 100,186
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.
2016: The 2016 same store grouping represents properties that will be owned and operating for both of the entire calendar years ended December 31, 2016 and 2015. This same store
grouping will be used for purposes of presenting our 2016 same store operating results.
2017: The 2017 same store grouping represents properties that will be owned and operating for both of the entire calendar years ended December 31, 2017 and 2016. This same store
grouping will be used for purposes of presenting our 2017 same store operating results and our final leasing results for the 2016/2017 academic year.
2018: The 2018 same store grouping represents properties that will be owned and operating for both of the entire calendar years ended December 31, 2018 and 2017. This same store
grouping will be used for purposes of presenting our 2018 same store operating results and our leasing status updates for the 2017/2018 academic year.
1. Represents a portfolio of 19 properties classified as held for sale that are anticipated to be sold in the fourth quarter of 2016 subject to the satisfaction of various contingencies and closing conditions. One of
the properties consists of two phases which are counted separately in the property portfolio numbers above.
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 wholly-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
(”FFO”)
Determined based on the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts
(“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
(”FFOM”)
FFO modified to reflect certain adjustments related to the economic performance of our on-campus participating properties, and the
elimination of property acquisition costs and other non-cash items, as we determine in good faith. 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.
* These definitions are provided for purposes of calculating the company’s bond covenants and other key ratios.
19
Definitions
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
“NOI”
Property revenues less direct property operating expenses, excluding depreciation, but including allocated corporate general and
administrative expenses.
On-campus Participating
Properties
A transaction structure whereby the company enters into long-term ground/facility lease agreements with Universities to develop,
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.
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 Wholly-owned properties owned and operating for both of the entire annual periods presented, which are not conducting or planning to
conduct substantial development or redevelopment activities, and are not classified as held for sale as of the current quarter end date.
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 and intangibles, of our consolidated
subsidiaries, all determined in accordance with GAAP.
Total Debt* Total consolidated debt calculated in accordance with GAAP, including capital leases and excluding mark-to-market premiums/discounts
on mortgage loans assumed in connection with acquisitions.
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 bond covenants and other key ratios.
20
Investor Information
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 VP, Investor Relations rdennison@americancampus.com
Austin, Texas 78738 www.americancampus.com
Executive Management
Bill Bayless Chief Executive Officer
Jim Hopke Chief Operating Officer
Jon Graf Chief Financial Officer
William Talbot Chief Investment Officer
Research Coverage
Jeffery Spector / Jana Galan Bank of America / Merrill Lynch (646) 855-1363 / (646) 855-3081 jeff.spector@baml.com / jana.galan@baml.com
Ryan Meliker / Michael Kodesch Canaccord Genuity (212) 389-8094 / (212) 389-8095 rmeliker@canaccordgenuity.com / mkodesch@canaccordgenuity.com
Thomas Lesnick / Ryan Wineman Capital One (571) 633-8191 / (571) 633-8414 thomas.lesnick@capitalone.com / ryan.wineman@capitalone.com
Michael Bilerman / Nick Joseph Citigroup Equity Research (212) 816-1383 / (212) 816-1909 michael.bilerman@citi.com / nicholas.joseph@citi.com
Vincent Chao / Vlad Rudnytsky Deutsche Bank Securities, Inc. (212) 250-6799 / (212) 250-6090 vincent.chao@db.com / vlad.rudnytsky@db.com
Steve Sakwa / Gwen Clark Evercore ISI (212) 446-9462 / (212) 446-5611 ssakwa@evercoreisi.com / gwen.clark@evercoreisi.com
David Corak FBR & Co. (703) 312-1610 dcorak@fbr.com
Andrew Rosivach / Jeff Pehl Goldman Sachs (212) 902-2796 / (212) 357-4474 andrew.rosivach@gs.com / jeffrey.pehl@gs.com
Dave Bragg / Ryan Burke Green Street Advisors (949) 640-8780 / (949) 640-8780 dbragg@greenst.com / rburke@greenst.com
Carol Kemple Hilliard Lyons (502) 588-1839 ckemple@hilliard.com
Aaron Hecht JMP Securities (415) 835-3963 ahecht@jmpsecurities.com
Anthony Paolone / Emil Shalmiyev J.P. Morgan Securities (212) 622-6682 / (212) 622-6615 anthony.paolone@jpmorgan.com / emil.shalmiyev@jpmorgan.com
Jordan Sadler / Austin Wurschmidt KeyBanc Capital Markets (917) 368-2280 / (917) 368-2311 jsadler@keybanccm.com / awurschmidt@key.com
Drew Babin Robert W. Baird & Co. (215) 553-7816 dbabin@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.
21
Forward-looking Statements
In addition to historical information, this supplemental package contains forward-looking statements under the federal
securities law. These statements are based on current expectations, estimates and projections about the industry
and markets in which American Campus operates, management's beliefs, and assumptions made by management.
Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties,
which are difficult to predict.