American Campus Communities Inc. Reports Fourth Quarter and Year End 2005 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 and year ended December December: see month. 31, 2005. Highlights --Quarterly FFOM FFOM Fraction Fermentescible des Ordures Ménagères FFOM Fellow of the Faculty of Occupational Medicine (Royal College of Physicians, London) of $0.37 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, and annual 2005 FFOM of $1.26 per fully diluted share. --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 7.7 percent over the fourth quarter 2004 and 11.6 percent over the year ended December 31, 2004. --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 98.4 percent as of December 31, 2005 compared to 97.4 percent as of December 31, 2004. --Executed contract to acquire Royal Properties student housing portfolio consisting of 13 existing properties with 5,710 beds in 10 major university markets. --Increased total assets by 50 percent from $367.6 million as of December 31, 2004 to $550.9 million as of December 31, 2005 through acquisitions and developments consistent with company's investment criteria criteria (krītēr´ē  ),n. . 2005 Operating Results Revenue for the 2005 fourth quarter totaled $26.0 million, up 43.3 percent from $18.2 million in the 2004 fourth quarter. Net income for the 2005 fourth quarter totaled $3.9 million, or $0.22 per fully diluted share, compared with $3.3 million, or $0.26 per fully diluted share, for the same quarter in 2004. FFO FFO See: Funds from operations for the 2005 fourth quarter totaled $8.1 million, or $0.47 per fully diluted share, compared with $6.2 million, or $0.48 per fully diluted share, for the fourth quarter 2004. FFOM for the 2005 fourth quarter totaled $6.5 million, or $0.37 per fully diluted share, compared with $4.5 million, or $0.36 per fully diluted share, for the fourth quarter 2004. Included in the 2005 results is a gain of $0.8 million related to the sale of the company's option to acquire a 23 percent interest in the Dobie Center. Additionally, while aggregate dollar amounts for net income, FFO and FFOM increased in 2005, per share amounts for net income and FFO were impacted by the July July: see month. 2005 equity offering and timing of the redeployment re·de·ploy tr.v. re·de·ployed, re·de·ploy·ing, re·de·ploys 1. To move (military forces) from one combat zone to another. 2. of this capital. A reconciliation of FFO and FFOM to net income is shown on Table 3. NOI for same store owned off-campus properties was $6.8 million in the quarter, up 7.7 percent from $6.3 million in the 2004 fourth quarter. NOI for the total owned off-campus property portfolio increased 59.7 percent to $10.1 million for the quarter from $6.3 million in the comparable period of 2004, primarily due to the impact of development and acquisition properties placed into service during the year. For purposes of calculating property NOI, 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 and unallocated corporate general and administrative expenses. For the year ended December 31, 2005, revenues totaled $87.5 million, up 43.8 percent from $60.8 million in 2004. Net income for the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. period totaled $9.7 million, or $0.65 per fully diluted share. FFO for the year-to-date period totaled $20.0 million, or $1.33 per fully diluted share, compared with $8.6 million in 2004, and FFOM for 2005 totaled $18.9 million, or $1.26 per fully diluted share, compared with $6.5 million in 2004. The results for 2004 represent the financial results of the company since our August 17, 2004 initial public offering plus the financial results of our Predecessor predecessor - parent prior to such date. As previously stated, 2005 results include a gain of $0.8 million related to the sale of the company's option to acquire a 23 percent interest in the Dobie Center. In addition, the company benefited from the timing of development properties being placed into service in 2004 and 2005 and property acquisitions in early 2005. A reconciliation of FFO and FFOM to net income is shown on Table 3. "2005 was a milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. year for us as we completed our first full year as a public company," 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. "Our growth through accretive acquisitions Accretive Acquisition An acquisition that will increase the acquiring company's EPS. Notes: As they are expected to increase the acquiring company's future earnings, these acquisitions tend to be favorable for the company's market price. and the strong performance of our core operations have enabled us to build a solid foundation for the future. This, coupled with the quality of our development pipeline and the pending closing of the Royal acquisition, gives us confidence in our prospects for the coming year as we endeavor See Endevor. to be the premier student housing company." Portfolio Update 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 May 2007 and occupancy is expected to occur in Summer 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 project, with the University seeking necessary approvals for the commencement of construction during the summer of 2006. The project at Blinn College Blinn College is a two-year academic institution based in Brenham, Texas with campuses in Brenham, Bryan, Schulenburg, and Sealy. While the Brenham campus is Blinn's main campus, over 70% of students attend the Bryan campus. has been delayed and $0.3 million in predevelopment costs were reserved for in the fourth quarter 2005. 2005 Capital Markets Activity The company successfully accessed the capital markets to strengthen its balance sheet in 2005 through the following activities: --Raised $102.9 million of gross proceeds through an equity offering on July 5, 2005, consisting of the sale of 4,575,000 shares of our common stock at a price per share of $22.50, including 575,000 shares issued as a result of the underwriters' exercise of their over-allotment option in full at the closing. --Amended the company's revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility from $75 million to $100 million and converted it from a secured to unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. facility. --Assumed and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. placed $86.0 million of fixed-rate mortgage debt associated with acquired properties at a weighted average interest rate of 6.2 percent. Subsequent to Year End On February February: see month. 8, 2006, the company substantially completed its due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. investigation relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the acquisition of Royal Properties' portfolio of 13 student housing properties located in 10 growing markets containing 5,710 beds, pursuant to a Contribution and Sale Agreement. The acquisition value of the transaction is $244.3 million which we anticipate will be paid with approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 2,200,000 units of limited partnership interest in the Operating Partnership, the assumption of approximately $123.6 million in fixed-rate mortgage debt, and the remainder in cash. As part of the transaction, Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. J. Henneman, chairman of Royal Properties, will join ACC's board of directors. The transaction is expected to close in early March at which time the company will issue a separate press release and supplemental package. The company has signed a memorandum of understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. with Arizona State University Arizona State University, at Tempe; coeducational; opened 1886 as a normal school, became 1925 Tempe State Teachers College, renamed 1945 Arizona State College at Tempe. Its present name was adopted in 1958. , which clarifies the party's intent related to three potential development components containing approximately 4,850 beds on ASU's campus. Total project cost is estimated at $345 million and the company intends to develop these properties as part of its owned portfolio. The first two components of the on-campus on-campus adjective Referring to an on-site site of a medical complex with multiple buildings. Cf 'Off campus.'. student housing project are scheduled to open together in Fall 2008 on land leased from ASU ASU Arizona State University (Tempe, AZ) ASU Appalachian State University ASU Arkansas State University ASU Angelo State University ASU Alabama State University ASU Australian Services Union . In addition, a service agreement was signed with the University of Hawaii (body, education) University of Hawaii - A University spread over 10 campuses on 4 islands throughout the state. http://hawaii.edu/uhinfo.html. See also Aloha, Aloha Net. - Manoa Mānoa is a valley and a residential neighborhood of Honolulu, Hawaiʻi, USA approximately three miles east and inland from downtown Honolulu and less than a mile from Ala Moana and Waikīkī at for predevelopment and construction management services. Construction on the project is scheduled to commence during the first quarter of 2007. 2006 Outlook The company believes that the financial results for the fiscal year ending December 31, 2006 will be affected by: --national and regional economic trends and events; --the timing of acquisitions; --interest rate risk; --the timing of starts and completion of owned development projects; --the ability and the timing of the company to be awarded and commence construction of third-party development projects; --the amount of income recognized by the taxable REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). subsidiary and any corresponding income tax expense; --the ability of the company to integrate acquired properties; --the success of releasing the company's owned properties for the 2006-2007 academic year; and --other factors Based upon these assumptions management anticipates that fiscal year 2006 FFO will be in the range of $1.48 to $1.62 per fully diluted share and that FFOM will be in the range of $1.36 to $1.50 per fully diluted share. 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, 2006, and assumptions utilized is included in Table 4. 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 fourth quarter and year end results and the 2006 outlook on Thursday Thursday: see week. , March 2, 2006 at 11 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy (10:00 a.m. CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. ). To participate by telephone, call 800-638-5495 passcode 22319795 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 March 8, 2006 by dialing 888-286-8010 or 617-801-6888 passcode 55995904. 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 RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. 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 Indicator Anything used to predict future financial or economic trends. Notes: In the context of technical analysis, an indicator is a mathematical calculation based on a securities price and/or volume. The result is used to predict future prices. 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 indicative: see mood. 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 spec·i·fy tr.v. spec·i·fied, spec·i·fy·ing, spec·i·fies 1. To state explicitly or in detail: specified the amount needed. 2. To include in a specification. 3. 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. 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) 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 25 student housing communities containing approximately 17,100 beds. Including its owned properties, the company provides management and leasing services at a total of 40 properties with more than 26,100 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. 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 terrorism, the threat or use of violence, often against the civilian population, to achieve political or social ends, to intimidate opponents, or to publicize grievances. 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)
December 31, December 31,
2005 2004
---------- ----------
Assets (unaudited)
Investments in real estate:
Owned off-campus properties, net $ 417,098 $ 272,450
On-campus participating properties, net 80,370 68,064
---------- ----------
Investments in real estate, net 497,468 340,514
Cash and cash equivalents 24,641 4,635
Restricted cash 9,502 9,231
Student contracts receivable, net 2,610 2,164
Other assets 16,641 11,084
---------- ----------
Total assets $ 550,862 $ 367,628
========== ==========
Liabilities and stockholders' equity
Liabilities:
Secured debt $ 291,646 $ 201,014
Accounts payable and accrued expenses 7,983 5,443
Other liabilities 25,155 20,294
---------- ----------
Total liabilities 324,784 226,751
Minority interests 2,851 2,648
Stockholders' equity:
Common stock 172 126
Additional paid in capital 233,388 138,343
Accumulated earnings and dividends (10,817) (282)
Accumulated other comprehensive income 484 42
---------- ----------
Total stockholders' equity 223,227 138,229
---------- ----------
Total liabilities and stockholders' equity $ 550,862 $ 367,628
========== ==========
Table 2
American Campus Communities Inc. and Subsidiaries and
American Campus Predecessor
Consolidated & Combined Statements of Operations
(dollars in thousands, except share and per share data)
Three Months Ended
December 31,
------------------------
2005 2004
---------- ----------
Revenues: (unaudited)
Owned off-campus properties $ 16,802 $ 10,456
On-campus participating properties 6,207 5,595
Third-party development services 1,860 1,065
Third-party management services 731 798
Resident services 449 268
---------- ----------
Total revenues 26,049 18,182
Operating expenses:
Owned off-campus properties 7,156 4,404
On-campus participating properties 2,291 2,122
Third-party development and management
services 2,323 1,422
General and administrative 1,891 1,314
Depreciation and amortization 4,328 2,823
Ground/facility leases 176 148
---------- ----------
Total operating expenses 18,165 12,233
---------- ----------
Operating income 7,884 5,949
Non-operating income and (expenses):
Interest income 327 25
Interest expense (4,607) (3,550)
Amortization of deferred financing costs (336) (232)
Other non-operating income 849 556
---------- ----------
Total non-operating expenses (3,767) (3,201)
---------- ----------
Income (loss) before income taxes,
minority interests, and discontinued
operations 4,117 2,748
Income tax (provision) benefit (180) (29)
Minority interests (79) (30)
---------- ----------
Income (loss) from continuing operations 3,858 2,689
Discontinued operations:
Income (loss) attributable to
discontinued operations - 651
Gain (loss) gain from disposition of
real estate - -
---------- ----------
Total discontinued operations - 651
---------- ----------
Net income (loss) $ 3,858 $ 3,340
========== ==========
Net income per share - basic $ 0.22 $ 0.26
========== ==========
Net income per share - diluted $ 0.22 $ 0.26
========== ==========
Weighted average common shares outstanding:
Basic 17,204,375 12,622,145
========== ==========
Diluted 17,371,328 12,743,145
========== ==========
Twelve Months Ended
December 31,
------------------------
2005 2004
---------- ----------
Revenues: (unaudited)
Owned off-campus properties $ 59,239 $ 35,115
On-campus participating properties 18,470 17,418
Third-party development services 5,854 5,803
Third-party management services 2,786 2,105
Resident services 1,125 382
---------- ----------
Total revenues 87,474 60,823
Operating expenses:
Owned off-campus properties 27,551 16,861
On-campus participating properties 8,325 7,995
Third-party development and management
services 6,969 5,543
General and administrative 6,714 5,234
Depreciation and amortization 16,471 9,973
Ground/facility leases 873 812
---------- ----------
Total operating expenses 66,903 46,418
---------- ----------
Operating income 20,571 14,405
Non-operating income and (expenses):
Interest income 825 82
Interest expense (17,368) (16,698)
Amortization of deferred financing costs (1,176) (1,211)
Other non-operating income 1,279 927
---------- ----------
Total non-operating expenses (16,440) (16,900)
---------- ----------
Income (loss) before income taxes,
minority interests, and discontinued
operations 4,131 (2,495)
Income tax (provision) benefit (186) 728
Minority interests (164) 100
---------- ----------
Income (loss) from continuing operations 3,781 (1,667)
Discontinued operations:
Income (loss) attributable to
discontinued operations (2) 367
Gain (loss) gain from disposition of
real estate 5,883 (39)
---------- ----------
Total discontinued operations 5,881 328
---------- ----------
Net income (loss) $ 9,662 $ (1,339)
========== ==========
Net income per share - basic $ 0.65 $ 0.14(a)
========== ==========
Net income per share - diluted $ 0.65 $ 0.15(a)
========== ==========
Weighted average common shares outstanding:
Basic 14,882,944 12,513,130(a)
========== ==========
Diluted 15,047,202 12,634,130(a)
========== ==========
(a) Share and per share amounts represents the period from August 17,
2004, the date of the company's initial public offering, through
December 31, 2004.
Table 3
American Campus Communities Inc. and Subsidiaries and
American Campus Predecessor Calculation of FFO and FFOM
(unaudited, dollars in thousands, except share and per share data)
Three Months Ended
December 31,
------------------------
2005 2004
---------- ----------
Net income (loss) $ 3,858 $ 3,340
Minority interests 79 30
(Gain) loss from disposition of real estate - -
Real estate-related depreciation and
amortization 4,209 2,791
---------- ----------
Funds from operations ("FFO") 8,146 6,161
Elimination of operations from on-campus
participating properties:
Net income from on-campus participating
properties (1,321) (1,179)
Amortization of investment in on-campus
participating properties (986) (871)
---------- ----------
5,839 4,111
Modifications to reflect operational
performance of on-campus participating
properties:
Our share of net cash flow (a) 176 148
Management fees 290 274
On-campus participating properties
development fees (b) 207 15
---------- ----------
Impact of on-campus participating
properties 673 437
---------- ----------
Funds from Operations--modified for
operational performance of on-campus
participating properties ("FFOM") $ 6,512 $ 4,548
========== ==========
FFO per share
Basic $ 0.47 $ 0.49
========== ==========
Diluted $ 0.47 $ 0.48
========== ==========
FFOM per share
Basic $ 0.38 $ 0.36
========== ==========
Diluted $ 0.37 $ 0.36
========== ==========
Weighted average common shares outstanding:
Basic 17,204,375 12,622,145
========== ==========
Diluted 17,371,328 12,743,145
========== ==========
Twelve Months Ended
December 31,
------------------------
2005 2004
---------- ----------
Net income (loss) $ 9,662 $ (1,339)
Minority interests 164 (100)
(Gain) loss from disposition of real estate (5,883) 39
Real estate-related depreciation and
amortization 16,032 10,009
---------- ----------
Funds from operations ("FFO") 19,975 8,609
Elimination of operations from on-campus
participating properties:
Net income from on-campus participating
properties (424) (270)
Amortization of investment in on-campus
participating properties (3,661) (3,531)
---------- ----------
15,890 4,808
Modifications to reflect operational
performance of on-campus participating
properties:
Our share of net cash flow (a) 842 797
Management fees 878 860
On-campus participating properties
development fees (b) 1,275 15
---------- ----------
Impact of on-campus participating
properties 2,995 1,672
---------- ----------
Funds from Operations--modified for
operational performance of on-campus
participating properties ("FFOM") $ 18,885 $ 6,480
========== ==========
FFO per share
Basic $ 1.34 $ 0.48(c)
========== ==========
Diluted $ 1.33 $ 0.47(c)
========== ==========
FFOM per share
Basic $ 1.27 $ 0.34(c)
========== ==========
Diluted $ 1.26 $ 0.34(c)
========== ==========
Weighted average common shares outstanding:
Basic 14,882,944 12,513,130(c)
========== ==========
Diluted 15,047,202 12,634,130(c)
========== ==========
(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
actual cash received for the year-to-date periods and 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.
(c) Share and per share amounts represent the period from August 17,
2004, the date of the Company's initial public offering, through
December 31, 2004.
Table 4
American Campus Communities Inc. and Subsidiaries
2006 Outlook (a)
(unaudited, dollars in thousands, except per share data)
Low High
---------- ----------
Net income $ 2,200 $ 4,300
Minority interests 300 600
Depreciation and amortization 24,600 24,900
Amortization of acquired intangible assets 1,500 1,500
---------- ----------
Funds from operations ("FFO") 28,600 31,300
Elimination of operations from on-campus
participating properties (4,000) (4,000)
Modifications to reflect operational
performance of on-campus participating
properties 1,700 1,700
---------- ----------
Funds from operations - modified for
operational performance of on-campus
participating properties $ 26,300 $ 29,000
========== ==========
Weighted average common shares
outstanding - diluted 19,350 19,350
========== ==========
Net income per share - diluted $ 0.11 $ 0.22
========== ==========
FFO per share - diluted $ 1.48 $ 1.62
========== ==========
FFOM per share - diluted $ 1.36 $ 1.50
========== ==========
(a) Assumes that: (1) the company will complete current contracted
acquisitions during the first quarter of 2006 at current contract
terms based on preliminary fair value adjustments; (2) the company
will complete $40 to $80 million of off-campus property
acquisitions during the third and fourth quarter of 2006; (3) the
2006-2007 academic year lease-up will experience rate increases of
2% to 4% and occupancy levels of 97% to 98% as compared to the
current academic year; (4) Callaway Villas will open on-time and
on-budget; (5) the company will generate third-party development
and management revenues from $7.6 million to $10.0 million; and
(6) The University of New Orleans third-party development project
will commence construction during the summer of 2006.
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