EX-99.1 2 ex991-q32019earningsre.htm EXHIBIT 99.1 Exhibit
Exhibit 99.1

MEDIA RELEASE
acclogocolora1021.jpg


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

Increased quarterly FFOM per share by 5 percent; announces three new on-campus development projects


AUSTIN, Texas -- (BUSINESS WIRE)—October 21, 2019--American Campus Communities, Inc. (NYSE:ACC) today announced the following financial results for the quarter ended September 30, 2019.

Highlights

•
Reported net income attributable to ACC of $20.2 million or $0.14 per fully diluted share, versus net loss of $2.3 million or $0.02 per fully diluted share in the third quarter 2018.

•
Increased FFOM per fully diluted share by 4.5 percent to $0.46 or $64.1 million, versus $0.44 or $60.6 million for the third quarter prior year.

•
Grew same store net operating income ("NOI") by 0.4 percent over the third quarter 2018 with revenues increasing 2.2 percent and operating expenses increasing 3.9 percent.

•
Achieved 1.7 percent opening rental revenue growth for 2020 same store properties upon completion of the 2019-2020 academic year lease-up. Results included 1.4 percent average rental rate growth and occupancy of 97.4 percent as of September 30, 2019 versus 97.0 percent for the same date prior year. Adjusted to include only the company’s 55 percent share of the Austin portfolio, the effective rental revenue growth which flows through to FFOM is 2.0 percent.

•
Delivered five new owned development and presale development projects containing 3,159 beds into service for the 2019-2020 academic year. Totaling $405.9 million, this year’s development portfolio was 98.1 percent occupied as of September 30, 2019.

•
Awarded or directly negotiating three new on-campus development projects with Georgetown University in Washington D.C., Texas State University in San Marcos, TX and a second phase project with Northeastern University in Boston.

“We are pleased with the successful delivery of five developments this quarter. This group of new assets has already contributed to the $0.02 earnings guidance raise we recently announced,” said Bill Bayless, American Campus Communities CEO. “With our target development yields of 6.25 percent and above, and private market values for core assets trading in the low 4 percent area, these assets also generated significant net asset value for our shareholders upon delivery. As we look forward to the start of a new leasing season, we see a healthy fundamental environment with Fall 2020 new supply in our markets expected to decline approximately 20 percent from 2019 levels.”
Third Quarter Operating Results

Revenue for the 2019 third quarter totaled $227.7 million versus $213.5 million in the third quarter 2018, and operating income for the quarter totaled $27.3 million versus $21.5 million in the prior year third quarter. The increase in revenue and operating income was primarily due to increased occupancy and rental rates and growth associated with recently completed development and presale development projects. Net income for the 2019 third quarter totaled $20.2 million, or $0.14 per fully diluted share, compared with net loss of $2.3 million, or $0.02 per fully diluted share for the same quarter in 2018. FFO for the 2019 third quarter totaled


$86.0 million, or $0.62 per fully diluted share, as compared to $60.6 million, or $0.44 per fully diluted share for the same quarter in 2018. FFOM for the 2019 third quarter was $64.1 million, or $0.46 per fully diluted share, as compared to $60.6 million, or $0.44 per fully diluted share for the same quarter in 2018. A reconciliation of FFO and FFOM to net income is provided in Table 3.
 
NOI for same store properties was $91.2 million in the quarter, an increase of 0.4 percent from $90.9 million in the 2018 third quarter. Same store property revenues increased by 2.2 percent over the 2018 third quarter due primarily to an increase in occupancy and average rental rates. Same store property operating expenses increased by 3.9 percent versus the prior year quarter. NOI for the total portfolio increased 4.7 percent to $100.0 million for the quarter from $95.5 million in the comparable period of 2018. A reconciliation of same store NOI to total NOI is provided in Table 4.

Portfolio Update

Developments
During the quarter, the company placed into service five owned development and presale development assets totaling $405.9 million. As of September 30, 2019, this year’s portfolio achieved 98.1 percent occupancy. The company also progressed with construction of its $785.8 million development pipeline with expected deliveries in 2020 through 2023. These projects are all core Class A assets and remain on track to meet their targeted stabilized development yield in the range of 6.25 — 6.8 percent.
On-Campus Development Awards
The company has been awarded or is directly negotiating three new on-campus development projects through its public-private partnership platform. Pre-development activities are underway for these projects, which include anticipated third-party development projects with Georgetown University in Washington D.C. and Texas State University in San Marcos, TX, and an anticipated second phase American Campus Equity (ACE®) development with Northeastern University in Boston. The transaction structure, scope, feasibility, fees and timing have not been finalized for the proposed projects.
Capital Recycling Update

The company is under an access agreement and the buyer is completing final due diligence for the sale of one asset with anticipated proceeds of $100 million. In addition, the company is in negotiations for the sale of another property with proceeds of approximately $150 million. The sale of these previously acquired assets are expected to represent a low 4 percent economic cap rate.
Capital Markets
At-The-Market (ATM) Share Offering Program
The company did not sell any shares under the ATM during the quarter.
2019 Outlook
The company is maintaining its recently increased guidance range for the fiscal year 2019, anticipating that FFO will be in the range of $2.61 to $2.63 per fully diluted share and FFOM will be in the range of $2.40 to $2.44 per fully diluted share. For additional details regarding the company’s 2019 outlook, see pages S-18 through S-19 of the Supplemental Analyst Package 3Q 2019. All guidance is based on the current expectations and judgment of the company’s management team.
A reconciliation of the range provided for projected net income to projected FFO and FFOM for the fiscal year ending December 31, 2019 is included in Table 5.


Supplemental Information and Earnings Conference Call
Supplemental financial and operating information, as well as this release, are available in the investor relations section of the American Campus Communities website, www.americancampus.com. In addition, the company will host a conference call to discuss third quarter results and the 2019 outlook on Tuesday, October 22, 2019 at 10:00 a.m. ET (9:00 a.m. CT). The conference call may be accessed by dialing 888-317-6003 passcode 4824168, or 412-317-6061 for international participants.
To listen to the live webcast, go to www.americancampus.com at least 15 minutes prior to the call so that required audio software can be downloaded. A replay of the conference call will be available beginning one hour after the end of the call until November 5, 2019 by dialing 877-344-7529 or 412-317-0088 conference number 10134878. Additionally, the replay will be available for one year at www.americancampus.com.
Non-GAAP Financial Measures
The National Association of Real Estate Investment Trusts ("NAREIT") currently defines Funds from Operations ("FFO") as net income or loss attributable to common shares computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains or losses from depreciable operating property sales, impairment charges and real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. We present FFO because we consider it an important supplemental measure of our operating performance and believe it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs. We also believe it is meaningful to present a measure we refer to as FFO-Modified, or (“FFOM”), which reflects certain adjustments related to the economic performance of our on-campus participating properties and excludes property acquisition costs and other non-cash items, as we determine in good faith. FFO and FFOM should not be considered as alternatives to net income or loss computed in accordance with GAAP as an indicator of our financial performance or to cash flow from operating activities computed in accordance with GAAP as an indicator of our liquidity, nor are these measures indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions.
The company defines property net operating income (“NOI”) as property revenues less direct property operating expenses, excluding depreciation, but including allocated corporate general and administrative expenses.
About American Campus Communities
American Campus Communities, Inc. is the largest owner, manager and developer of high-quality student housing communities in the United States. The company is a fully integrated, self-managed and self-administered equity real estate investment trust (REIT) with expertise in the design, finance, development, construction management and operational management of student housing properties. As of September 30, 2019, American Campus Communities owned 168 student housing properties containing approximately 113,400 beds. Including its owned and third-party managed properties, ACC's total managed portfolio consisted of 205 properties with approximately 140,300 beds. Visit www.americancampus.com.
Forward-Looking Statements
In addition to historical information, this press release contains forward-looking statements under the applicable federal securities law. These statements are based on management’s current expectations and assumptions regarding markets in which American Campus Communities, Inc. (the “Company”) operates, operational strategies, anticipated events and trends, the economy, and other future conditions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. For discussions of some risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements, please refer to our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2018 under the heading “Risk Factors” and under the heading “Business - Forward-looking Statements” and subsequent quarterly reports on Form 10-Q. We undertake no obligation to publicly update any forward-looking statements, including our expected 2019 operating results, whether as a result of new information, future events, or otherwise.






Table 1
American Campus Communities, Inc. and Subsidiaries
Consolidated Balance Sheets
(dollars in thousands)
 
 
September 30, 2019
 
December 31, 2018
 
 
(unaudited)
 
 
Assets
 
 
 
 
 
 
 
 
 
Investments in real estate:
 
 
 
 
Owned properties, net
 
$
6,759,867

 
$
6,583,397

On-campus participating properties, net
 
76,854

 
77,637

Investments in real estate, net
 
6,836,721

 
6,661,034

 
 
 
 
 
Cash and cash equivalents
 
56,218

 
71,238

Restricted cash
 
29,569

 
35,279

Student contracts receivable
 
27,360

 
8,565

Operating lease right of use assets 1
 
461,810

 
—

Other assets 1
 
257,304

 
262,730

 
 
 
 
 
Total assets
 
$
7,668,982

 
$
7,038,846

 
 
 
 
 
Liabilities and equity
 
 

 
 

 
 
 
 
 
Liabilities:
 
 

 
 

Secured mortgage, construction and bond debt, net
 
$
827,588

 
$
853,084

Unsecured notes, net
 
1,984,748

 
1,588,446

Unsecured term loans, net
 
199,033

 
198,769

Unsecured revolving credit facility
 
352,100

 
387,300

Accounts payable and accrued expenses
 
86,295

 
88,767

Operating lease liabilities 2
 
469,479

 
—

   Other liabilities 2
 
211,612

 
191,233

Total liabilities
 
4,130,855

 
3,307,599

 
 
 
 
 
Redeemable noncontrolling interests
 
157,863

 
184,446

 
 
 
 
 
Equity:
 
 

 
 

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

 
1,370

Additional paid in capital
 
4,455,565

 
4,458,240

Common stock held in rabbi trust
 
(3,486
)
 
(3,092
)
Accumulated earnings and dividends
 
(1,104,448
)
 
(971,070
)
Accumulated other comprehensive loss
 
(18,929
)
 
(4,397
)
Total American Campus Communities, Inc. and
  Subsidiaries stockholders’ equity
 
3,330,075

 
3,481,051

  Noncontrolling interests – partially owned properties
 
50,189

 
65,750

Total equity
 
3,380,264

 
3,546,801

 
 
 
 
 
Total liabilities and equity
 
$
7,668,982

 
$
7,038,846


1.
For purposes of calculating net asset value ("NAV") at September 30, 2019, the company excludes other assets of approximately $4.9 million related to net deferred financing costs on its revolving credit facility and the net value of in-place leases and operating lease right of use assets disclosed above associated with new lease accounting guidance that was adopted by the company on January 1, 2019.
2.
For purposes of calculating NAV at September 30, 2019, the company excludes other liabilities of approximately $77.6 million related to deferred revenue and fee income, as well as operating lease liabilities disclosed above associated with new lease accounting guidance that was adopted by the company on January 1, 2019.






Table 2
American Campus Communities, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income
(dollars in thousands, except share and per share data)
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2019
 
2018
 
2019
 
2018
 
 
(unaudited)
 
(unaudited)
Revenues
 
 
 
 
 
 
 
 
Owned properties 1
 
$
211,082

 
$
202,834

 
$
638,657

 
$
597,854

On-campus participating properties 1
 
6,944

 
6,980

 
24,788

 
23,605

Third-party development services
 
5,611

 
835

 
12,389

 
3,883

Third-party management services
 
3,342

 
2,128

 
9,118

 
7,311

Resident services
 
726

 
692

 
2,255

 
2,284

Total revenues
 
227,705

 
213,469

 
687,207

 
634,937

 
 
 
 
 
 
 
 
 
Operating expenses
 
 

 
 

 
 
 
 

Owned properties 1
 
111,836

 
107,997

 
294,768

 
282,193

On-campus participating properties 1
 
3,822

 
3,875

 
11,585

 
11,030

Third-party development and management services
 
5,430

 
3,831

 
14,129

 
11,573

General and administrative  2
 
7,165

 
7,183

 
22,595

 
27,055

Depreciation and amortization
 
68,930

 
66,131

 
206,500

 
194,447

Ground/facility leases
 
3,215

 
2,951

 
10,000

 
8,526

Loss (gain) from disposition of real estate
 
—

 
—

 
282

 
(42,314
)
Provision for real estate impairment
 
—

 
—

 
3,201

 
—

Other operating income
 
—

 
—

 
—

 
(2,648
)
Total operating expenses
 
200,398

 
191,968

 
563,060

 
489,862

 
 
 
 
 
 
 
 
 
Operating income
 
27,307

 
21,501

 
124,147

 
145,075

 
 
 
 
 
 
 
 
 
Nonoperating income (expenses)
 
 

 
 

 
 
 
 

Interest income
 
960

 
1,274

 
2,855

 
3,740

Interest expense
 
(28,303
)
 
(25,185
)
 
(82,432
)
 
(72,207
)
Amortization of deferred financing costs
 
(1,315
)
 
(1,116
)
 
(3,665
)
 
(4,744
)
Gain (loss) from extinguishment of debt 3
 
20,992

 
—

 
20,992

 
(784
)
Other nonoperating income
 
—

 
570

 
—

 
570

Total nonoperating expenses
 
(7,666
)
 
(24,457
)
 
(62,250
)
 
(73,425
)
 
 
 
 
 
 
 
 
 
   Income (loss) before income taxes
 
19,641

 
(2,956
)
 
61,897

 
71,650

Income tax (provision) benefit 4
 
(305
)
 
219

 
(983
)
 
(2,147
)
Net income (loss)
 
19,336

 
(2,737
)
 
60,914

 
69,503

Net loss (income) attributable to noncontrolling interests
 
887

 
392

 
(665
)
 
88

Net income (loss) attributable to ACC, Inc. and
  Subsidiaries common stockholders
 
$
20,223

 
$
(2,345
)
 
$
60,249

 
$
69,591

Other comprehensive (loss) income
 
 

 
 

 
 
 
 

Change in fair value of interest rate swaps and other
 
(145
)
 
81

 
(14,532
)
 
726

Comprehensive income (loss)
 
$
20,078

 
$
(2,264
)
 
$
45,717

 
$
70,317

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

 
 
 
 

 
 
 
 
 
 
 
 
 
Basic and diluted
 
$
0.14

 
$
(0.02
)
 
$
0.43

 
$
0.50

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding
 
 

 
 

 
 
 
 

 
 
 
 
 
 
 
 
 
Basic
 
137,403,842

 
137,022,012

 
137,259,130

 
136,742,094

 
 
 
 
 
 
 
 
 
Diluted
 
138,375,527

 
137,022,012

 
138,257,906

 
137,660,802


1.
The company adopted new lease accounting guidance on January 1, 2019, which required the reclassification of the provision for uncollectible accounts from operating expenses to revenue. The reclassification is reflected on a prospective basis starting in the first quarter 2019, but the prior year amounts have not been reclassified. The provision for uncollectible accounts for owned properties was $3.3 million and $2.9 million for the three months ended September 30, 2019 and 2018, respectively, and was $6.1 million and $5.6 million for the nine months ended September 30, 2019 and 2018, respectively. The provision for uncollectible accounts for on-campus participating properties for the three months ended September 30, 2019 was $0.1 million, nominal for the three months ended September 30, 2018, and a $0.6 million benefit and a $0.2 million expense for the nine months ended September 30, 2019 and 2018, respectively.
2.
The nine months ended September 30, 2018 amount includes $5.8 million of transaction costs incurred in connection with the closing of the ACC / Allianz joint venture transaction in May 2018.
3.
The three and nine months ended September 30, 2019 amounts represent the gain on the extinguishment of debt associated with a property that was transferred to the lender in settlement of the property's mortgage loan in July 2019.
4.
Income tax provision / benefit for the three and nine months ended September 30, 2018 includes a $0.5 million benefit and a $1.3 million provision, respectively, related to an estimated taxable gain resulting from the ACC / Allianz joint venture transaction which closed in May 2018.



Table 3
American Campus Communities, Inc. and Subsidiaries
Consolidated Statements of Funds from Operations (“FFO”)
(unaudited, dollars in thousands, except share and per share data)
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2019
 
2018
 
2019
 
2018
Net income (loss) attributable to ACC, Inc. and Subsidiaries
  common stockholders
 
$
20,223

 
$
(2,345
)
 
$
60,249

 
$
69,591

Noncontrolling interests' share of net (loss) income
 
(887
)
 
(392
)
 
665

 
(88
)
Joint venture partners' share of FFO
 
(1,175
)
 
(1,563
)
 
(6,856
)
 
(2,100
)
Loss (gain) from disposition of real estate
 
—

 
—

 
282

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

 
—

 
3,201

 
—

Total depreciation and amortization
 
68,930

 
66,131

 
206,500

 
194,447

Corporate depreciation 1
 
(1,135
)
 
(1,261
)
 
(3,528
)
 
(3,420
)
FFO attributable to common stockholders and OP unitholders
 
85,956

 
60,570

 
260,513

 
216,116

Elimination of operations of on-campus participating properties
 
 

 
 

 
 
 
 

Net loss (income) from on-campus participating properties
 
424

 
436

 
(2,138
)
 
(1,715
)
Amortization of investment in on-campus participating properties
 
(2,289
)
 
(1,962
)
 
(6,334
)
 
(5,856
)
 
 
84,091

 
59,044

 
252,041

 
208,545

Modifications to reflect operational performance of on-campus participating properties
 
 

 
 

 
 

 
 

Our share of net cashflow 2
 
353

 
644

 
2,063

 
2,232

Management fees and other
 
369

 
302

 
1,597

 
1,058

Contribution from on-campus participating properties
 
722

 
946

 
3,660

 
3,290

 
 
 
 
 
 
 
 
 
Transaction costs 3
 
147

 
(232
)
 
147

 
7,586

Elimination of (gain) loss from extinguishment of debt 4
 
(20,992
)
 
—

 
(20,992
)
 
784

Elimination of gain from litigation settlement 5
 
—

 
—

 
—

 
(2,648
)
Elimination of FFO from property in receivership 6
 
104

 
842

 
1,912

 
2,037

Funds from operations-modified (“FFOM”) attributable to common stockholders and OP unitholders
 
$
64,072

 
$
60,600

 
$
236,768

 
$
219,594

 
 
 
 
 
 
 
 
 
FFO per share – diluted
 
$
0.62

 
$
0.44

 
$
1.88

 
$
1.56

 
 
 
 
 
 
 
 
 
FFOM per share – diluted
 
$
0.46

 
$
0.44

 
$
1.71

 
$
1.58

 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding - diluted
 
138,879,244

 
138,585,384

 
138,854,970

 
138,569,643

 
 
 
 
 
 
 
 
 

1.
Represents depreciation on corporate assets not added back for purposes of calculating FFO.
2.
50% of the properties’ net cash available for distribution after payment of operating expenses, debt service (including repayment of principal) and capital expenditures which is included in ground/facility leases expense in the consolidated statements of comprehensive income (refer to table 2).
3.
The three months ended September 30, 2019 amount represents transaction costs incurred in connection with the closing of one presale transaction in August 2019. The three months ended September 30, 2018 amount represents transaction costs incurred in connection with the closing of a presale transaction in August 2018, net of an adjustment to estimated state income tax related to a tax gain resulting from the ACC / Allianz real estate joint venture transaction in May 2018. The nine months ended September 30, 2018 amount includes the costs discussed above in addition to transaction costs incurred in connection with the closing of the ACC / Allianz real estate joint venture transaction.
4.
Represents gains and losses associated with the extinguishment of mortgage loans due to real estate disposition transactions, including the sale of partial ownership interests in properties and the transfer of an owned property to the lender in satisfaction of the property's mortgage loan. Such costs are excluded from gains from disposition of real estate reported in accordance with GAAP.
5.
Represents a gain related to cash proceeds received from a litigation settlement.
6.
Represents FFO for an owned property that was transferred to the lender in July 2019 in settlement of the property's mortgage loan.



Table 4
American Campus Communities, Inc. and Subsidiaries
Owned Properties Results of Operations1 
(unaudited, dollars in thousands)
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2019
 
2018
 
$ Change
 
% Change
 
2019
 
2018
 
$ Change
 
% Change
Owned properties revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same store properties
$
194,005

 
$
189,791

 
$
4,214

 
2.2
%
 
$
589,581

 
$
573,187

 
$
16,394

 
2.9
%
New properties
17,799

 
9,337

 
8,462

 
 
 
49,116

 
9,594

 
39,522

 
 
Sold and held for sale properties 2
4

 
1,547

 
(1,543
)
 
 
 
2,215

 
11,774

 
(9,559
)
 
 
Total revenues 3 4
$
211,808

 
$
200,675

 
$
11,133

 
5.5
%
 
$
640,912

 
$
594,555

 
$
46,357

 
7.8
%
Owned properties operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same store properties 
$
102,805

 
$
98,929

 
$
3,876

 
3.9
%
 
$
271,817

 
$
265,102

 
$
6,715

 
2.5
%
New properties
8,886

 
4,831

 
4,055

 
 
 
20,782

 
5,146

 
15,636

 
 
Other 5
75

 
217

 
(142
)
 
 
 
210

 
561

 
(351
)
 
 
Sold and held for sale properties 2 6
70

 
1,169

 
(1,099
)
 
 
 
1,959

 
5,801

 
(3,842
)
 
 
Total operating expenses 3
$
111,836

 
$
105,146

 
$
6,690

 
6.4
%
 
$
294,768

 
$
276,610

 
$
18,158

 
6.6
%
Owned properties net operating income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same store properties 
$
91,200

 
$
90,862

 
$
338

 
0.4
%
 
$
317,764

 
$
308,085

 
$
9,679

 
3.1
%
New properties
8,913

 
4,506

 
4,407

 
 
 
28,334

 
4,448

 
23,886

 
 
Other 5
(75
)
 
(217
)
 
142

 
 
 
(210
)
 
(561
)
 
351

 
 
Sold and held for sale properties 2 6
(66
)
 
378

 
(444
)
 
 
 
256

 
5,973

 
(5,717
)
 
 
Total net operating income
$
99,972

 
$
95,529

 
$
4,443

 
4.7
%
 
$
346,144

 
$
317,945

 
$
28,199

 
8.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

1.
The same store grouping above represents properties owned and operating for both of the entire years ended December 31, 2019 and 2018, which are not conducting or planning to conduct substantial development, redevelopment, or repositioning activities, and are not classified as held for sale as of September 30, 2019. Includes the full operating results of properties owned through joint ventures in which the company has a controlling financial interest and which are consolidated for financial reporting purposes.
2.
Includes properties sold in 2018 and 2019 and one property that was transferred to the lender in July 2019 in settlement of the property's $27.4 million mortgage loan.
3.
The company adopted new lease accounting guidance on January 1, 2019, which required the reclassification of the provision for uncollectible accounts from operating expenses to revenue starting in the first quarter 2019. To ensure comparability between periods when calculating same store and new property results of operations, the reclassification has also been made for the prior year. See table 2 for the total amounts reclassified from operating expenses to revenue for all properties for both periods presented.
4.
Includes revenues that are reflected as Resident Services Revenue on the accompanying consolidated statements of comprehensive income.
5.
Includes transaction costs and recurring professional fees related to the formation and operation of the ACC / Allianz joint venture that are included in owned properties operating expenses in the consolidated statements of comprehensive income (refer to table 2).
6.
Does not include the allocation of payroll and other administrative costs related to corporate management and oversight.




Table 5
American Campus Communities, Inc. and Subsidiaries
2019 Outlook1 
(dollars in thousands, except share and per share data)
 
 
Prior Guidance
 
Current Guidance
 
 
Low
 
High
 
Low
 
High
 
 
 
 
 
 
 
 
 
Net income 2
 
$
74,600

 
$
86,700

 
$
102,500

 
$
106,300

Noncontrolling interests' share of net income
 
5,800

 
3,900

 
1,600

 
1,600

Joint venture partners' share of funds from operations
 
(14,500
)
 
(11,600
)
 
(9,700
)
 
(9,700
)
Real estate related depreciation and amortization
 
273,100

 
273,100

 
272,400

 
272,400

Corporate depreciation
 
(5,300
)
 
(5,300
)
 
(4,800
)
 
(4,800
)
Funds from operations ("FFO")
 
$
333,700

 
$
346,800

 
$
362,000

 
$
365,800

 
 
 
 
 
 
 
 
 
Elimination of operations from on-campus participation properties ("OCPP")
 
(14,100
)
 
(13,700
)
 
(14,400
)
 
(14,000
)
Contribution from on-campus participation properties
 
5,500

 
6,100

 
4,800

 
5,400

Elimination of gain from early extinguishment of debt 2
 
—

 
—

 
(21,000
)
 
(21,000
)
Elimination of FFO from property in receivership 2
 
—

 
—

 
1,900

 
1,900

Transaction costs 3
 
800

 
800

 
600

 
600

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

 
$
340,000

 
$
333,900

 
$
338,700

 
 
 
 
 
 
 
 
 
Net income per share - diluted
 
$
0.54

 
$
0.62

 
$
0.74

 
$
0.77

 
 
 
 
 
 
 
 
 
FFO per share - diluted
 
$
2.40

 
$
2.50

 
$
2.61

 
$
2.63

 
 
 
 
 
 
 
 
 
FFOM per share - diluted
 
$
2.35

 
$
2.45

 
$
2.40

 
$
2.44

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

 
138,866,100

 
138,866,100

 
138,866,100

 
 
 
 
 
 
 
 
 

1.
The company believes that the financial results for the fiscal year ending December 31, 2019 may be affected by, among other factors:
•
national and regional economic trends and events;
•
interest rate risk;
•
university enrollment, funding and policy trends;
•
the timing of acquisitions, dispositions or joint venture activity;
•
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;
•
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.
In July 2019, an owned property was transferred to the lender in settlement of the property's $27.4 million mortgage loan. The gain resulting from the transfer as well as the operating results of the property during the receivership period have been eliminated when calculating FFOM in order to more accurately present the company's anticipated operating results for 2019.
3.
Represents transaction costs related to the closing of two presale development properties.





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