American Campus Communities (ACC) Misses Q3 EPS by 7c, Beats on Revenues

American Campus Communities (NYSE: ACC) reported Q3 EPS of ($0.01), $0.07 worse than the analyst estimate of $0.06. Revenue for the quarter came in at $196.94 million versus the consensus estimate of $180.43 million.

Highlights

• Reported net loss attributable to ACC of $1.3 million or $0.01 per fully diluted share, versus net income of $9.6 million or $0.07 per fully diluted share in the third quarter 2016. Net loss in the current quarter includes approximately $4.8 million in expenses related to Hurricanes Harvey and Irma and transaction costs related to the Core Spaces / DRW portfolio transaction.
• Reported quarterly FFOM per share of $0.44 per fully diluted share or $61.2 million, versus $0.45 per fully diluted share or $60.4 million for the third quarter prior year.
• Reported same store wholly-owned net operating income (\"NOI\") decreased by 0.8 percent over the third quarter 2016 with revenues increasing 1.3 percent and operating expenses increasing 3.3 percent. Excluding expenses of $1.9 million associated with Hurricanes Harvey and Irma during the quarter, same store wholly-owned operating expenses and NOI would have increased by 1.0 and 1.7 percent, respectively.
• Achieved an average rental rate increase of 2.9 percent and reported occupancy of 96.6 percent for 2018 same store wholly-owned properties, as of September 30, 2017 versus 97.2 percent for the same date prior year.
• Delivered 10 new owned development projects containing 7,454 beds into service for the 2017-2018 academic year totaling $609.2 million in development cost.
• Executed a predevelopment agreement for a second phase American Campus Equity (ACE®) development on the University of Southern California Health Sciences campus in Los Angeles. The estimated $42.0 million project is expected to include approximately 300 on-campus beds targeting delivery in Fall 2020.
• Executed an agreement to recapitalize and ultimately acquire seven select student housing properties, including three presale developments for delivery in 2018, all totaling 3,776 beds for $590.6 million from affiliates of Core Spaces and DRW Real Estate Investments.
• Continued the company’s strategic Seattle expansion in the University of Washington market with the acquisition of Bridges @ 11th subsequent to quarter end. The 258-bed community is located on university owned land immediately adjacent to the company’s recently acquired TWELVE at U District and only two blocks from Hub U District Seattle.

For earnings history and earnings-related data on American Campus Communities (ACC) click here.

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