American Campus Communities (ACC) Misses Q1 EPS by 1c, Revenues Beat; Provides FY19 Fiscal Outlook

American Campus Communities (NYSE: ACC) reported Q1 EPS of $0.21, $0.01 worse than the analyst estimate of $0.22. Revenue for the quarter came in at $242.1 million versus the consensus estimate of $226.47 million.

• Reported net income attributable to ACC of $29.6 million or $0.21 per fully diluted share, versus $25.9 million or $0.18 per fully diluted share in the first quarter 2018.
• Increased FFOM to $95.3 million or $0.69 per fully diluted share versus $86.4 million or $0.62 per fully diluted share in the first quarter prior year, an increase of 11.3 percent per share.
• Grew same store net operating income ("NOI") by 5.1 percent over the first quarter 2018. Revenues increased 3.1 percent and operating expenses increased 0.5 percent.
• Increased same store average physical occupancy to 96.9 percent for the first quarter 2019 compared to 94.9 percent for the first quarter 2018.
• Selected as the student housing master plan development partner for the recent UC Berkeley Student Housing Initiative RFQ. UC Berkeley expects to develop multiple phases of housing on several project sites to provide in excess of 6,000 new beds. The full scope, transaction structure, feasibility, fees, and timing will be negotiated.
• Commenced construction on third-party on-campus development projects at Drexel University and Prairie View A&M University.
• Won an industry-leading six Innovator Awards at this year\'s Student Housing Business National Conference including Best New Development by a College, University or Institution; Best Use of Green/Sustainable Development; Best Public/Private Partnership Financing Solution; Best New Development (less than 400 beds); Best Bandwidth/Connectivity Solution and Best In-House Management Innovation. Since the inception of the Innovator Awards, ACC and its communities have won an industry-leading total of 37 awards, furthering its best-in-class reputation among colleges, universities and industry partners.

“We are pleased with our first quarter performance, generating earnings per share growth of over 11 percent and same store NOI growth of over five percent,” said Bill Bayless, American Campus Communities CEO. “We’re off to a great start this year with same store revenues meeting our expectations and operating expenses coming in better than expected. However, we have a lot left to complete with our Fall 2019 lease-up and several third party development transactions remaining to close. We are also delighted to have been selected as the student housing master plan development partner for UC Berkeley, the world’s number one public university as ranked by U.S. News & World Report, further substantiating our position as the world’s best-in-class student housing partner.”

2019 Outlook

The company is maintaining its previously stated guidance range for the fiscal year 2019, anticipating that FFO will be in the range of $2.40 to $2.50 per fully diluted share and FFOM will be in the range of $2.35 to $2.45 per fully diluted share. For additional details regarding the company’s 2019 outlook, please see pages S-15 through S-16 of the Supplemental Analyst Package 1Q 2019. All guidance is based on the current expectations and judgment of the company’s management team.

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

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