American Campus Communities, Inc. Reports Second Quarter 2021 Financial Results

AUSTIN, Texas–(BUSINESS WIRE)–American Campus Communities, Inc. (NYSE:ACC) today announced the following financial results for the quarter ended June 30, 2021.


  • Reported net loss attributable to ACC of $9.4 million or $0.07 per fully diluted share, versus net loss of $13.3 million or $0.10 per fully diluted share in the second quarter 2020.
  • Reported FFOM of $58.8 million or $0.42 per fully diluted share, versus $50.9 million or $0.37 per fully diluted share in the second quarter prior year.
  • Same store net operating income (“NOI”) increased 11.6 percent versus the second quarter 2020. Revenues increased 10.3 percent and operating expenses increased 8.9 percent as compared to the prior year quarter.
  • Preleasing for the 2022 same store portfolio for academic year 2021-2022 currently stands at 91.7 percent as of July 23, 2021, as compared to 88.6 percent for the same date prior year.
  • Delivered phase four of the ten-phase Flamingo Crossings Village, located near Walt Disney World® Resort in May. With the completion of phase five in July, the company has delivered 4,996 beds on schedule and within budget. Since commencing leasing activities only two months ago, approximately 3,200 residents have occupied Flamingo Crossings Village, with occupancy expected to increase to at least 85 percent this fall.
  • Extended the maturity of the unsecured revolving credit facility to May 2025 and demonstrated the company’s commitment to Environmental, Social and Governance (“ESG”) practices by introducing sustainability-linked pricing to the facility, whereby the borrowing rate improves if the company meets certain ESG performance targets.
  • Won an industry-leading four Innovator Awards at this year’s InterFace Student Housing National Conference, including On-Campus Best New Development; On-Campus Best Public-Private Financing Solution; On-Campus Best Architecture; and On-Campus Best Implementation of Mixed-Use/Live-Learn. Since the inception of the Innovator Awards, ACC and its communities have won an industry-leading total of 43 awards, furthering its best-in-class reputation among colleges, universities and industry partners.

“The positive trends toward normalization continue on all fronts,” said Bill Bayless, American Campus Communities CEO. “We outperformed our operational and financial expectations for the quarter, our Disney College Program housing continues to make great strides in initial occupancy, and our Fall 2021 lease-up moved ahead of the prior year’s pace in early July. Our preleasing velocity is now trending at a level that we believe will result in occupancy and average rental rate gains producing opening rental revenue growth for the 2021-2022 academic year of 5.1 – 7.6 percent. We are pleased to now be able to provide a financial outlook for the full year that includes these positive trends. While the short-term impacts from the COVID pandemic will linger into fall of 2021 at varying degrees geographically, we continue to believe that we will return to our historic range of occupancy for the 2022-2023 academic year, as the long-term fundamentals of our sector are strong and appear to be gaining tailwinds. Specifically, these tailwinds include admission applications at record highs at the four-year public and private universities we serve and target; new supply is continuing to trend downward nationally through the 2022-2023 academic year; universities nationwide are resuming in-person academic and social activities and are reinstating their on-campus housing policies for first-year students in Fall 2021; and university partnership opportunities to modernize on-campus housing are resuming to pre-pandemic levels and beyond. This environment provides the company a unique opportunity for robust internal growth and high-quality external growth, driving meaningful earnings growth and net asset value creation in the years ahead.”

Second Quarter Operating Results

Revenue for the 2021 second quarter totaled $208.5 million, versus $185.5 million in the second quarter 2020, and operating income for the quarter totaled $19.4 million compared to $12.5 million in the prior year second quarter. The increase in revenue and operating income was primarily due to COVID-19 related financial impacts affecting the prior year period, including rent relief, the loss of revenues from summer camps and conferences, increased uncollectible accounts and waived fees. Net loss for the 2021 second quarter totaled $9.4 million, or $0.07 per fully diluted share, compared with net loss of $13.3 million, or $0.10 per fully diluted share for the same quarter in 2020.

FFO for the 2021 second quarter totaled $56.7 million, or $0.41 per fully diluted share, as compared to $50.3 million, or $0.36 per fully diluted share for the same quarter in 2020. FFOM for the 2021 second quarter was $58.8 million, or $0.42 per fully diluted share as compared to $50.9 million, or $0.37 per fully diluted share for the same quarter in 2020. A reconciliation of FFO and FFOM to net income is provided in Table 3.

NOI for same store properties was $103.3 million in the quarter, an increase of 11.6 percent from $92.5 million in the 2020 second quarter. Same store property revenues increased by 10.3 percent and same store property operating expenses increased by 8.9 percent versus the prior year quarter. The increase in same store property operating results is primarily due to the normalization of the company’s operations in 2021, as compared to the prior year quarter, which was significantly impacted by COVID-19, as discussed above. NOI for the total owned portfolio increased 13.3 percent to $103.9 million for the quarter from $91.7 million in the comparable period of 2020. A reconciliation of same store NOI to total NOI is provided in Table 4.

Academic Year 2021-2022 Preleasing Update

Preleasing for the company’s 2022 same store portfolio for academic year 2021-2022 currently stands at 91.7 percent as of July 23, 2021, as compared to 88.6 percent for the same date prior year. The company’s 2021 outlook, which is detailed on page S-16 of the Supplemental Analyst Package, includes opening Fall 2021 occupancy of 92.0 to 94.0 percent and average rental rate growth of 3.0 to 3.5 percent.

“As Bill discussed in his InterFace Student Housing Conference presentation on July 14th, the long-term fundamentals of the student housing sector are strong and full normalization is expected in Fall 2022. With regard to Fall 2021, while we are extremely pleased with the progress we have made, lingering short-term impacts of the COVID pandemic have prohibited a full return to normalcy,” said Jennifer Beese, American Campus Communities COO. “These short-term impacts include:

  • current COVID-impacted occupancy in ACC communities is resulting in a lower absolute number of renewal leases for the 2021-2022 academic year, despite renewal percentages being in-line with pre-pandemic ranges;
  • universities relaxing their on-campus housing policies in Fall 2020 caused lower on-campus occupancies (we estimate on-campus housing occupancy in our 68 owned markets to have been approximately 67 percent), resulting in a lower number of first-year 2020 on-campus occupants directly transitioning to off-campus housing in Fall 2021;
  • geographic differences in university policies and consumer behaviors; and
  • continuing COVID-19 related concerns among some students and parents.

Given these lingering impacts, we are very pleased with the student desire to be back in the campus environment, as evidenced by the increasing demand for spring and summer leases at our properties and the meaningful projected rental revenue growth that the Fall 2021 lease-up is anticipated to produce. We remain very optimistic as the trend toward full normalization in Fall 2022 remains on track. With universities resuming their on-campus housing policies, significantly increasing levels of in-person learning and extracurricular events, and most allowing full capacity attendance at fall sporting events, we will once again have the opportunity to implement our exclusive in-person and sports marketing programs as we kick off the 2022 leasing season.”

Portfolio Update


During the quarter, the company delivered the $84.5 million fourth phase of the ten-phase Flamingo Crossings Village, located near Walt Disney World® Resort. With the completion of phase five in July, the company has delivered 4,996 beds, representing $298.9 million of development on schedule and within budget. Since commencing leasing activities on May 27, approximately 3,200 residents have occupied Flamingo Crossings Village. Based on future onboarding plans and taking into consideration COVID protocols, the company anticipates occupancy to be at least 85 percent of available beds by the fall of 2021.

The company continues construction on the remaining five phases of Flamingo Crossings Village, which are expected to be completed through 2023. Barring unforeseen future impacts related to the COVID-19 pandemic, the company expects the project to meet its original 2022 targeted yield, with full stabilization at the 6.8 percent targeted yield in May 2023, as initially anticipated prior to the pandemic.

Capital Markets

During the quarter, the company renewed its $1.0 billion senior unsecured revolving credit facility. The facility now matures in May 2025 and demonstrates the company’s commitment to ESG with sustainability-linked pricing, whereby the borrowing rate improves if the company meets certain ESG performance targets. The facility also includes two 6-month extension options and an accordion feature that allows the company to expand the facility by up to an additional $500 million, subject to the satisfaction of certain conditions. Borrowing rates float at a margin over LIBOR plus an annual facility fee with spreads reflecting current market terms, which are more favorable than those contained in the prior facility. Both the margin and the facility fee are priced on a grid that is tied to the company’s credit rating. Based on the company’s current Baa2/BBB rating, the annual facility fee is 20 basis points and the LIBOR margin is 85 basis points, a reduction of 15 basis points from previous pricing levels.

At-The-Market (ATM) Share Offering Program

Since the beginning of the second quarter, the company sold 1.2 million shares of common stock under the ATM program at a weighted average price of $49.05 per share, for net proceeds of approximately $58.9 million. The proceeds were primarily used to repay borrowings on the company’s revolving credit facility, which was utilized to fund construction on our high-yielding development pipeline. Total gross proceeds of $59.7 million have been raised under the company’s current ATM program, leaving approximately $440 million of capacity.

COVID-19 Update

The company continues to collaborate in good faith with its university partners and during the quarter refunded $0.7 million of students’ rent for a portion of existing on-campus leases at one university. The company anticipates refunds of $0.7 million in the third quarter and does not expect the need for on-campus refunds to continue into the upcoming 2021-2022 academic year.

The company collected an average of 96.8 percent of rent during the second quarter, representing total delinquency of approximately $5.8 million, which includes approximately $0.3 million in rent relief under the company’s Resident Hardship Program.

2021 Outlook

The company believes that the financial results for the fiscal year ending December 31, 2021 may be affected by, among other factors:

  • national and regional economic trends and events;
  • the success of our leasing activities for the 2021-2022 academic year, which could be impacted as the COVID-19 pandemic continues to evolve;
  • the level of lease terminations, rent refunds, and/or abatements granted to student and commercial tenants;
  • economic hardship experienced by student and commercial tenants and its ultimate effect on rent collections and thus the provision for uncollectible accounts;
  • canceled or delayed third-party development projects;
  • reduced revenues at our third-party managed properties resulting in reduced third-party management fee income;
  • the impact of any stimulus payments that may be received by the company, our tenants, and/or our University partners under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and any future similar governmental actions;
  • any increase in, or reduction to, operating expenses as a result of COVID-19;
  • the amount of leasing and related fees earned for the 2021-2022 and 2022-2023 academic years, which are affected by the timing and velocity of the company’s leasing process;
  • the timing and amount of any acquisitions, dispositions or joint venture activity;
  • interest rate risk;
  • the timing of commencement and completion of construction for owned development projects;
  • university enrollment, funding and policy trends;
  • the amount of income recognized by the taxable REIT subsidiaries and any corresponding income tax expense;
  • the outcome of legal proceedings arising in the normal course of business; and
  • the finalization of property tax rates and assessed values in certain jurisdictions.

Based upon these factors, management anticipates that fiscal year 2021 FFO will be in the range of $1.95 to $2.09 per fully diluted share and FFOM will be in the range of $1.93 to $2.07 per fully diluted share. Additionally, management anticipates that third quarter 2021 FFO will be in the range of $0.32 to $0.36 per fully diluted share and FFOM will be in the range of $0.33 to $0.37 per fully diluted share.

For additional details regarding the company’s outlook, please see pages S-15 and S-16 of the Supplemental Analyst Package 2Q 2021. All guidance is based on the current expectations and judgment of the company’s management team. A reconciliation of the range provided for projected net income to projected FFO and FFOM is included in Table 5.

Supplemental Information and Earnings Conference Call

Supplemental financial and operating information, as well as this release, are available in the investor relations section of the American Campus Communities website, In addition, the company will host a conference call to discuss second quarter results and the 2021 outlook on Tuesday, July 27, 2021 at 10:00 a.m. ET (9:00 a.m. CT). The conference call may be accessed by dialing 888-317-6003 passcode 5977280, or 412-317-6061 for international participants.

To listen to the live webcast, go to at least 15 minutes prior to the call so that required audio software can be downloaded. A replay of the conference call will be available beginning one hour after the end of the call until August 10, 2021 by dialing 877-344-7529 or 412-317-0088 conference number 10157764. Additionally, the replay will be available for one year at

Non-GAAP Financial Measures

The National Association of Real Estate Investment Trusts (“NAREIT”) currently defines Funds from Operations (“FFO”) as net income or loss attributable to common shares computed in accordance with generally accepted accounting principles (“GAAP”), excluding gains or losses from depreciable operating property sales, impairment charges and real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. We present FFO because we consider it an important supplemental measure of our operating performance and believe it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs. We also believe it is meaningful to present a measure we refer to as FFO-Modified, or (“FFOM”), which reflects certain adjustments related to the economic performance of our on-campus participating properties and excludes other items, as we determine in good faith, that do not reflect our core operations on a comparative basis. FFO and FFOM should not be considered as alternatives to net income or loss computed in accordance with GAAP as an indicator of our financial performance or to cash flow from operating activities computed in accordance with GAAP as an indicator of our liquidity, nor are these measures indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions.

The company defines property net operating income (“NOI”) as property revenues less direct property operating expenses, excluding depreciation, but including allocated corporate general and administrative expenses.

About American Campus Communities

American Campus Communities, Inc. is the largest owner, manager and developer of high-quality student housing communities in the United States. The company is a fully integrated, self-managed and self-administered equity real estate investment trust (REIT) with expertise in the design, finance, development, construction management and operational management of student housing properties. As of June 30, 2021, American Campus Communities owned 166 student housing properties containing approximately 111,900 beds. Including its owned and third-party managed properties, ACC’s total managed portfolio consisted of 205 properties with approximately 141,300 beds. Visit

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements under the applicable federal securities law. These statements are based on management’s current expectations and assumptions regarding markets in which American Campus Communities, Inc. (the “Company”) operates, operational strategies, anticipated events and trends, the economy, and other future conditions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. These risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward looking-statements include those related to the COVID-19 pandemic, about which there are still many unknowns, including the duration of the pandemic and the extent of its impact, and those discussed in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2020 under the heading “Risk Factors” and under the heading “Business – Forward-looking Statements” and subsequent quarterly reports on Form 10-Q. We undertake no obligation to publicly update any forward-looking statements, including our preleasing activity or expected full year 2021 operating results, whether as a result of new information, future events, or otherwise. The information contained on our website is not a part of this release.

Table 1

American Campus Communities, Inc. and Subsidiaries

Consolidated Balance Sheets

(dollars in thousands)




June 30, 2021


December 31, 2020
















Investments in real estate





Owned properties, net









On-campus participating properties, net







Investments in real estate, net












Cash and cash equivalents







Restricted cash







Student contracts receivable, net







Operating lease right of use assets 1







Other assets 1












Total assets














Liabilities and equity















Secured mortgage and bond debt, net









Unsecured notes, net







Unsecured term loans, net







Unsecured revolving credit facility







Accounts payable and accrued expenses







Operating lease liabilities 2







Other liabilities 2







Total liabilities












Redeemable noncontrolling interests

















American Campus Communities, Inc. and Subsidiaries

stockholders’ equity:





Common stock







Additional paid in capital







Common stock held in rabbi trust







Accumulated earnings and dividends







Accumulated other comprehensive loss







Total American Campus Communities, Inc. and

Subsidiaries stockholders’ equity







Noncontrolling interests – partially owned properties







Total equity












Total liabilities and equity









  1. For purposes of calculating net asset value (“NAV”) at June 30, 2021, the company excludes other assets of approximately $9.0 million related to net deferred financing costs on its revolving credit facility and the net value of in-place leases, as well as operating lease right of use assets disclosed above.
  2. For purposes of calculating NAV at June 30, 2021, the company excludes other liabilities of approximately $38.3 million related to deferred revenue and fee income, as well as operating lease liabilities disclosed above.

Table 2

American Campus Communities, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income

(dollars in thousands, except share and per share data)




Three Months Ended

June 30,


Six Months Ended

June 30,
























Owned properties

















On-campus participating properties













Third-party development services













Third-party management services













Total revenues






















Operating expenses (income)









Owned properties













On-campus participating properties













Third-party development and management services













General and administrative 1













Depreciation and amortization













Ground/facility leases













Gain from disposition of real estate










Total operating expenses






















Operating income






















Nonoperating income (expenses)









Interest income













Interest expense













Amortization of deferred financing costs













Loss from extinguishment of debt 2










Other nonoperating income











Total nonoperating expenses






















(Loss) income before income taxes













Income tax provision













Net (loss) income













Net loss attributable to noncontrolling interests













Net (loss) income attributable to ACC, Inc. and

Subsidiaries common stockholders

















Other comprehensive income (loss)









Change in fair value of interest rate swaps and other













Comprehensive (loss) income


























Net (loss) income per share attributable to ACC, Inc.

and Subsidiaries common shareholders


















Basic and Diluted



































Weighted-average common shares outstanding






















































American Campus Communities, Inc., Austin

Ryan Dennison, 512-732-1000

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