American Campus Communities Inc. Reports First Quarter 2006 Financial Results.AUSTIN Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum , Texas -- American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Campus Communities Inc. (NYSE NYSE See: New York Stock Exchange :ACC See adaptive cruise control. ) today announced the following financial results for the quarter ended March 31, 2006. Highlights --Quarterly FFOM FFOM Fraction Fermentescible des Ordures Ménagères FFOM Fellow of the Faculty of Occupational Medicine (Royal College of Physicians, London) of $0.39 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share or $7.0 million, compared to $0.33 or $4.2 million in the prior year first quarter. --Increase in net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. ("NOI NOI Net Operating Income NOI Notice of Intent NOI Nation of Islam NOI Notice of Inquiry NOI Neuro Orthopaedic Institute NOI New Organizing Institute NOI Notice of Interest NOI No Offense Intended NOI National Olympiad in Informatics ") for same store owned off-campus properties of 5.4 percent over the first quarter 2005. --Increase in same store occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy for owned off-campus portfolio to 98.9 percent as of March 31, 2006 compared to 97.2 percent as of March 31, 2005. --Increase in same store owned off-campus pre-leasing for the 2006-2007 academic year to 69 percent as of March 31, 2006 compared to 64 percent as of March 31, 2005. --Completed the acquisition of Royal Properties student housing portfolio for a value of $244.3 million that consists of 13 existing properties with 5,745 beds in 10 major university markets. --Increase in total market capitalization Total Market Capitalization The total market value of all of a firm's outstanding securities. by 43.6 percent to $900.1 million as of March 31, 2006 compared to $626.7 million as of December December: see month. 31, 2005. First Quarter 2006 Operating Results Revenue for the 2006 first quarter totaled $28.1 million, up 43.7 percent from $19.5 million in the 2005 first quarter. Net income for the 2006 first quarter totaled $3.7 million, or $0.21 per fully diluted share, compared with $8.2 million, or $0.65 per fully diluted share, for the same quarter in 2005. Net income decreased primarily due to a gain from the disposition of real estate of approximately $5.9 million, or $0.46 per share, that was recognized during the 2005 first quarter. Excluding the gain from disposition of real estate, net income for the 2005 first quarter would have been $0.19 per fully diluted share, resulting in an increase of $.02 per fully diluted share when compared to the net income for the 2006 first quarter. FFO FFO See: Funds from operations for the 2006 first quarter totaled $8.9 million, or $0.49 per fully diluted share, compared with $5.7 million, or $0.45 per fully diluted share, for the first quarter 2005. FFOM for the 2006 first quarter totaled $7.0 million, or $0.39 per fully diluted share, compared with $4.2 million, or $0.33 per fully diluted share, for the first quarter 2005. A reconciliation of FFO and FFOM to net income is shown on Table 3. NOI for same store owned off-campus properties was $7.1 million in the quarter, up 5.4 percent from $6.7 million in the 2005 first quarter. NOI for the total owned off-campus property portfolio increased 54.3 percent to $11.7 million for the quarter from $7.6 million in the comparable period of 2005, primarily due to the impact of acquisitions completed during both periods and a development property placed into service during 2005. "This quarter, we attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. substantial external growth consistent with our disciplined investment criteria criteria (krītēr´ē  ),n. and continued internal growth in our core business," said Bill Bayless, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and president of American Campus Communities. "In addition to increasing our owned portfolio by 52 percent through the Royal acquisition, we also achieved positive same store NOI growth for the sixth consecutive quarter since our initial public offering." Portfolio Update Leasing status for our owned off-campus portfolio is 83 percent applied for and 78 percent pre-leased for the 2006-2007 academic year as of April 28, 2006. Callaway Callaway may refer to:
Construction continues at The Village at Newark Newark, cities, United States Newark. 1 City (1990 pop. 37,861), Alameda co., W Calif., on the east side of San Francisco Bay; inc. 1955. with completion scheduled for Summer 2007 and occupancy expected to occur in Fall 2007. The University of New Orleans History UNO was founded in 1958 as the New Orleans branch of Louisiana State University, originally as "Louisiana State University in New Orleans" or "LSUNO", but became more independent and changed the name to "University of New Orleans" in 1974. continues to be an active on-campus on-campus adjective Referring to an on-site site of a medical complex with multiple buildings. Cf 'Off campus.'. third-party development project. The University is in the process of obtaining necessary approvals for the financing and commencement of construction during the summer of 2006. Supplemental Information and Earnings Conference Call Supplemental financial and operating information, as well as this release, are available in the investor relations Investor relations The process by which the corporation communicates with its investors. section of the American Campus Communities website, www.americancampuscommunities.com. In addition, the company will host a conference call to discuss first quarter results and the 2006 outlook on Wednesday Wednesday: see week. , May 3, 2006 at 10 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy (9:00 a.m. CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. ). To participate by telephone, call 866-362-4666 passcode 79852272 at least five minutes prior to the call. To listen to the live broadcast, go to www.americancampuscommunities.com or www.earnings.com at least 15 minutes prior to the call so that required audio software can be downloaded. Informational slides in the form of the supplemental analyst package can be accessed via the website. A replay of the conference call will be available beginning two hours after the end of the call until May 10, 2006 by dialing 888-286-8010 or 617-801-6888 passcode 60192254. The replay also will be available for 30 days at www.americancampuscommunities.com and at www.earnings.com. The call will also be available as a podcast (iPOD broadCAST) An audio broadcast that has been converted to an MP3 file or other audio file format for playback in a digital music player or computer. The "pod" in podcast was coined from "iPod," the predominant portable, digital music player, and although podcasts are on http://www.REITcafe.com and on the company's website shortly after the call. Non-GAAP Financial Measures As defined by NAREIT NAREIT National Association of Real Estate Investment Trusts , FFO represents income (loss) before allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as to minority interests (computed in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ), excluding gains (or losses) from sales of property, plus real estate related depreciation and amortization (excluding amortization of loan origination The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. costs) 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, many of which present FFO when reporting their results. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization unique to real estate, gains and losses from property dispositions and extraordinary items, it provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) , rental rates, operating costs operating costs npl → gastos mpl operacionales , development activities and interest costs, providing perspective not immediately apparent from net income. We compute To perform mathematical operations or general computer processing. For an explanation of "The 3 C's," or how the computer processes data, see computer. FFO in accordance with standards established by the Board of Governors of NAREIT in its March 1995 White Paper (as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. in November November: see month. 1999 and April 2002), which may differ from the methodology for calculating FFO utilized by other equity REITs Equity REIT A Real Estate Investment Trust that assumes ownership status in the property it invests in enabling investors of the REIT to earn dividends on rental income from the property and appreciation in property resale. Antithesis of a Mortgage REIT. and, accordingly, may not be comparable to such other REITs. Further, FFO does not represent amounts available for management's discretionary use because of needed capital replacement or expansion, debt service obligations or other commitments and uncertainties. FFO should not be considered as an alternative to net income (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 is it indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions. As noted above, FFO excludes GAAP historical cost depreciation and amortization of real estate and related assets because these GAAP items assume that the value of real estate diminishes over time. However, unlike the ownership of our owned off-campus properties, the unique features of our ownership interest in our on-campus participating properties cause the value of these properties to diminish over time. For example, since the ground leases under which we operate the participating properties require the reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. from operations of specified amounts for capital expenditures and for the repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of debt while our interest in these properties terminates upon the repayment of the debt, such capital expenditures do not increase the value of the property to us and mortgage debt amortization only increases the equity of the ground lessor One who rents real property or Personal Property to another. A lessor of land is a landlord. Cross-references Landlord and Tenant. lessor n. the owner of real property who rents it to a lessee pursuant to a written lease. . Accordingly, when considering our FFO, we believe it is also a meaningful measure of our performance to modify FFO to exclude the operations of our on-campus participating properties and to consider their impact on performance by including only that portion of our revenues from those properties that are reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of our share of net cash flow and the management fees that we receive, both of which increase and decrease with the operating measure of the properties, a measure we refer to as FFOM. The company defines property NOI as property revenues less direct property operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , excluding depreciation, but including allocated corporate general and administrative expenses. About American Campus Communities American Campus Communities Inc. is one of the largest developers, owners and managers of high-quality student housing communities in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The company is a fully integrated, self-managed and self-administered equity real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ) with expertise in the design, finance, development, construction management, leasing and management of student housing properties. American Campus Communities owns and manages a portfolio of 38 student housing communities containing approximately 22,900 beds. Including its owned properties, the company provides management and leasing services at a total of 58 properties with more than 35,600 beds located on or near college and university campuses. Additional information is available at www.americancampuscommunities.com. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This news release contains forward-looking statements, which express the current beliefs and expectations of management. Except for historical information, the matters discussed in this news release are forward-looking statements and can be identified by the use of the words "anticipate," "believe," "expect," "intend," "may," "might," "plan," "estimate," "project," "should," "will," "result" and similar expressions. Such statements are based on current expectations and involve a number of known and unknown risks and uncertainties that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including risks and uncertainties inherent in the national economy, the real estate industry in general, and in our specific markets; the effect of terrorism or the threat of terrorism; legislative or regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. changes including changes to laws governing gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. REITS; our dependence on key personnel whose continued service is not guaranteed; availability of qualified acquisition and development targets; availability of capital and financing; rising interest rates; rising insurance rates; impact of ad valorem According to value. The term ad valorem is derived from the Latin ad valentiam, meaning "to the value." It is commonly applied to a tax imposed on the value of property. and income taxation; changes in generally accepted accounting principals; and our continued ability to successfully lease and operate our properties. While we believe these forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be achieved. These forward-looking statements are made as of the date of this news release, and we undertake no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
Table 1
American Campus Communities Inc. and Subsidiaries
Consolidated Balance Sheets
(dollars in thousands)
March 31, December 31,
2006 2005
------------ ------------
Assets (unaudited)
Investments in real estate:
Owned off-campus properties, net $676,890 $417,098
On-campus participating properties, net 79,387 80,370
------------ ------------
Investments in real estate, net 756,277 497,468
Cash and cash equivalents 11,025 24,641
Restricted cash 12,609 9,502
Student contracts receivable, net 1,904 2,610
Other assets 20,101 16,641
------------ ------------
Total assets $801,916 $550,862
============ ============
Liabilities and stockholders' equity
Liabilities:
Secured debt $422,597 $291,646
Unsecured revolving credit facility 67,000 --
Accounts payable and accrued expenses 9,807 7,983
Other liabilities 26,294 25,155
------------ ------------
Total liabilities 525,698 324,784
Minority interests 35,011 2,851
Stockholders' equity:
Common stock 172 172
Additional paid in capital 253,432 233,388
Accumulated earnings and dividends (12,999) (10,817)
Accumulated other comprehensive income 602 484
------------ ------------
Total stockholders' equity 241,207 223,227
------------ ------------
Total liabilities and stockholders' equity $801,916 $550,862
============ ============
Table 2
American Campus Communities Inc. and Subsidiaries
Consolidated Statements of Operations
(dollars in thousands, except share and per share data)
Three Months Ended
March 31,
-------------------------
2006 2005
------------ ------------
Revenues: (unaudited)
Owned off-campus properties $19,487 $12,489
On-campus participating properties 5,982 5,493
Third-party development services 1,638 645
Third-party management services 662 710
Resident services 320 204
------------ ------------
Total revenues 28,089 19,541
Operating expenses:
Owned off-campus properties 8,149 5,136
On-campus participating properties 1,950 1,875
Third-party development
and management services 1,638 1,464
General and administrative 1,587 1,364
Depreciation and amortization 5,275 3,424
Ground/facility leases 192 212
------------ ------------
Total operating expenses 18,791 13,475
------------ ------------
Operating income 9,298 6,066
Non-operating income and (expenses):
Interest income 185 58
Interest expense (5,336) (3,808)
Amortization of deferred financing costs (355) (246)
Other non-operating income -- 430
------------ ------------
Total non-operating expenses (5,506) (3,566)
------------ ------------
Income before income taxes, minority
interests, and discontinued operations 3,792 2,500
Income tax provision -- (102)
Minority interests (128) (87)
------------ ------------
Income from continuing operations 3,664 2,311
Discontinued operations:
Loss attributable to discontinued
operations -- (2)
Gain from disposition of real estate -- 5,883
------------ ------------
Total discontinued operations -- 5,881
------------ ------------
Net income $3,664 $8,192
============ ============
Net income per share -- basic and diluted $0.21 $0.65
============ ============
Weighted average common shares outstanding:
Basic 17,209,779 12,622,145
============ ============
Diluted 18,176,189 12,769,939
============ ============
Table 3
American Campus Communities Inc. and Subsidiaries
Calculation of FFO and FFOM
(unaudited, dollars in thousands, except share and per share data)
Three Months Ended
March 31,
-------------------------
2006 2005
------------ ------------
Net income $3,664 $8,192
Minority interests 128 87
Gain from disposition of real estate -- (5,883)
Real estate-related depreciation and
amortization 5,155 3,326
------------ ------------
Funds from operations ("FFO") 8,947 5,722
Elimination of operations from on-campus
participating properties:
Net income from on-campus
participating properties (1,355) (1,310)
Amortization of investment
in on-campus participating properties (1,032) (879)
------------ ------------
6,560 3,533
Modifications to reflect operational
performance of on-campus participating
properties:
Our share of net cash flow(a) 192 212
Management fees 278 263
On-campus participating properties
development fees(b) -- 230
------------ ------------
Impact of on-campus participating
properties 470 705
------------ ------------
Funds from Operations -- modified for
operational performance of on-campus
participating properties ("FFOM") $7,030 $4,238
============ ============
FFO per share -- diluted $0.49 $0.45
============ ============
FFOM per share -- diluted $0.39 $0.33
============ ============
Weighted average common shares outstanding
-- diluted 18,176,189 12,769,939
============ ============
(a) 50 percent 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.
(b) Development and construction management fees, including
construction savings earned under the general construction
contract, related to the Cullen Oaks Phase II on-campus
participating property completed in August 2005.
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