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American Campus Communities Inc. Reports Operating Results (10-Q)

November 08, 2010 | About:
10qk

10qk

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American Campus Communities Inc. (ACC) filed Quarterly Report for the period ended 2010-09-30.

American Campus Communities Inc. has a market cap of $2.17 billion; its shares were traded at around $33.39 with a P/E ratio of 21.4 and P/S ratio of 7. The dividend yield of American Campus Communities Inc. stocks is 4.04%. American Campus Communities Inc. had an annual average earning growth of 5.6% over the past 5 years.ACC is in the portfolios of Chris Davis of Davis Selected Advisers, Ron Baron of Baron Funds, Manning & Napier Advisors, Inc, Jim Simons of Renaissance Technologies LLC, John Keeley of Keeley Fund Management.

Highlight of Business Operations:

Our third-party development and construction management services as of September 30, 2010 consisted of two projects under contract and currently in progress with fees ranging from $2.2 million to $2.5 million. As of September 30, 2010, fees of approximately $1.5 million remained to be earned by us with respect to these two projects, which both have scheduled completion dates of August 2011.

On September 1, 2010, we acquired the remaining 90% interest in 11 student housing properties previously owned in a joint venture in which we held a 10% interest, for a purchase price of $74.9 million. The acquired properties contain 6,806 beds located in various markets throughout the country. As part of the transaction, we assumed $193.8 million of fixed-rate mortgage debt with a weighted average annual interest rate of 5.99% and an average term to maturity of 3.8 years. We also assumed a $7.2 million variable-rate mortgage loan that was paid off in September.

In July 2010, we acquired a 201-unit, 487-bed wholly-owned property (Sanctuary Lofts) located near the campus of Texas State University in San Marcos, Texas, for a purchase price of $21.4 million, which excludes approximately $1.8 million of anticipated transaction costs, initial integration expenses and capital expenditures necessary to bring this property up to our operating standards. We did not assume any debt as part of this transaction.

Overview: As of September 30, 2010, we were in the process of constructing two owned off-campus properties and one ACE property that will be operated under a ground/facility lease with a related university system. We estimate that the total development costs relating to these activities will be approximately $102.6 million. As of September 30, 2010, we have incurred development costs of approximately $27.3 million in connection with these properties, including land costs of approximately $7.6 million. Remaining development costs are estimated to be approximately $75.3 million. The activities are described below:

Lobo Village (formerly University of New Mexico Phase I): As of September 30, 2010, our Lobo Village ACE property was under construction with total development costs estimated to be approximately $39.2 million. The project is scheduled to complete construction and open for occupancy in August 2011 and will serve students attending the University of New Mexico. As of September 30, 2010, the project was approximately 16% complete, and we estimate that remaining development costs will be approximately $30.8 million. As of September 30, 2010, we have funded 100% of the project s development costs and plan to fund the remaining development costs internally.

In May 2010, we announced the establishment of an at-the-market share offering program (the “ATM Equity Program”) through which we may issue and sell, from time to time, shares of common stock having an aggregate offering price of up to $150 million. Actual sales under the program will depend on a variety of factors, including, but not limited to, market conditions, the trading price of the Company s common stock and determinations of the appropriate sources of funding for the Company. During the three months ended September 30, 2010, we sold approximately 0.3 million shares at weighted average price of $28.42 per share for net proceeds of approximately $8.5 million, after payment of approximately $0.1 million of commissions to the sales agents. We may continue to sell shares of common stock under this program from time to time based on market conditions, although we are not under an obligation to sell any shares. As of September 30, 2010, we had approximately $133.7 million available for issuance under this program.

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