[April 23, 2018] |
|
American Campus Communities, Inc. Reports First Quarter 2018 Financial Results
American Campus Communities, Inc. (NYSE:ACC) today announced the
following financial results for the quarter ended March 31, 2018.
Highlights
-
Reported net income attributable to ACC of $25.9 million or $0.18 per
fully diluted share, versus $34.1 million or $0.25 per fully diluted
share in the first quarter 2017.
-
Reported quarterly FFOM of $85.8 million or $0.62 per fully diluted
share versus $83.2 million or $0.62 per fully diluted share in the
first quarter prior year.
-
Grew same store net operating income ("NOI") by 0.1 percent over the
first quarter 2017. Revenues increased 1.9 percent and operating
expenses increased 4.5 percent primarily due to the anticipated growth
in property taxes combined with expenses associated with excessive
winter storms. Excluding expenses of approximately $0.5 million
related to these excessive winter conditions, same store operating
expenses would have increased by 3.8 percent and same store NOI would
have increased by 0.6 percent.
-
Achieved same store average physical occupancy of 96.2 percent for the
first quarter 2018 compared to 96.9 percent for the first quarter 2017.
-
Executed a presale agreement for a new 443-bed development project
located pedestrian to the University of Oregon. Upon delivery in Fall
2019, the $70.6 million asset will further diversify the company's
existing product offering and provide additional opportunities for
multi-asset market efficiencies.
-
Began pre-development services for a proposed third-party development
project on the campus of Prairie View A&M University.
-
Won an industry-leading five Innovator Awards at this year's Student
Housing Business National Conference including Best Public/Private
Partnership Development, Best Use of Green & Sustainable Construction
or Development (on and off campus), Best Architecture/Design and Best
Bandwidth/Connectivity Solution. Additionally, two projects acquired
by American Campus Communities and developed by Core Spaces won awards
for Best New Development (400 beds or fewer) and Best
Architecture/Design (more than 400 beds). Since the inception of the
Innovator Awards, ACC and its communities have won an industry-leading
total of 31 awards, furthering its best-in-class reputation among
colleges, universities and industry partners.
"Sector maturity and optimism were on display at this month's Interface
Student Housing Conference with major players across the industry
reflecting on the consistency of cash flows and further growth
opportunities, which are attracting record levels of capital and
compressing cap rates for core assets located near major universities
across the nation," said Bill Bayless, American Campus CEO. "With the
constrained equity capital environment facing most public REITs, we
currently intend to selectively pursue only the highest risk-adjusted
return opportunities. We plan to fund these investments via our
strategic capital recycling initiatives focused on harvesting value from
our existing portfolio of core assets, through joint ventures and/or
dispositions, taking advantage of the strong private market conditions."
First Quarter Operating Results
Revenue for the 2018 first quarter totaled $220.4 million, versus $192.9
million in the first quarter 2017, and operating income for the quarter
totaled $50.4 million compared to $49.2 million in the prior year first
quarter. The increase in revenues and operating income was primarily due
to growth resulting from increased rental rates for the 2017-2018
academic year, development properties completed in 2017 and property
acquisitions completed in 2017. Net income for the 2018 first quarter
totaled $25.9 million, or $0.18 per fully diluted share, compared with
net income of $34.1 million, or $0.25 per fully diluted share for the
same quarter in 2017. FFO for the 2018 first quarter totaled $89.8
million, or $0.65 per fully diluted share, as compared to $86.0 million,
or $0.64 per fully diluted share for the same quarter in 2017. FFOM for
the 2018 first quarter was $85.8 million, or $0.62 per fully diluted
share as compared to $83.2 million, or $0.62 per fully diluted share for
the same quarter in 2017. A reconciliation of FFO and FFOM to net income
is provided in Table 3.
NOI for same store properties was $104.4 million in the quarter, an
increase of 0.1 percent from $104.3 million in the 2017 first quarter.
Same store property revenues increased by 1.9 percent and same store
property operating expenses increased by 4.5 percent over the prior year
quarter primarily due to anticipated growth in property taxes combined
with expenses associated with excessive winter conditions. NOI for the
total owned portfolio increased 13.0 percent to $118.3 million for the
quarter from $104.8 million in the comparable period of 2017. A
reconciliation of same store NOI to total NOI is provided in Table 4.
Portfolio Update
Developments
The company continues to progress on the construction of its 15 owned
development and presale development projects with expected deliveries in
Fall 2018 and 2019. The developments total approximately $1.1 billion
and are all core Class A assets located on or pedestrian to campus in
their respective markets. The projects average less than one-tenth of a
mile to campus and remain on track to achieve stabilized development
yields in the range of 6.25 - 7.0 percent for developments and 5.7 -
6.25 percent for presale developments.
Off-Campus Owned
During the quarter, the company executed a $70.6 million presale
agreement for 959 Franklin, a 443-bed pedestrian development serving
students attending the University of Oregon. The community is located
less than one-tenth of a mile from campus and less than one-fourth of a
mile from the future $1.0 billion Phil and Penny Knight Campus for
Accelerating Scientific Impact. Additionally, the property is
strategically positioned between the company's two existing assets in
the market, 2125 Franklin and The 515, offering opportunities for
multi-asset market efficiencies upon opening in Fall 2019. With a highly
diversified unit mix, including layouts ranging from studios up to 5
bedroom/5 bathroom floorplans, the property will provide additional
diversification from the company's existing assets in the market. Under
the presale agreement, the company is responsible for the management,
operations and initial lease up of the project while the developer
retains delivery and construction cost risk. Upon executing the
agreement, the company provided the developer with $15.6 million in
mezzanine financing for the development of the project.
Potential Joint Venture
The company has executed a non-binding term sheet and is in final
negotiations for the sale of a minority interest in a portfolio of owned
core assets. The company expects to retain a majority ownership stake in
the portfolio and to provide property and asset management services upon
completion. Consistent with the company's 2018 guidance, the transaction
is anticipated to close during the second quarter, although there can be
no assurance with respect to the timing of the closing of the
transaction or whether the transaction will be completed. Assuming the
completion of the transaction, proceeds will be used to pay down
existing variable rate debt.
Third-Party Services
The company began pre-development activities for a proposed third-party
on-campus development project at Prairie View A&M University. The
proposed project represents the company's ninth phase of development on
the campus. The company anticipates providing management services for
the project upon completion although the full scope, feasibility, fees
and timing have not been finalized.
Capital Markets
At-The-Market (ATM) Share Offering Program
The company did not sell any shares under the ATM during the quarter.
2018 Outlook
The company is maintaining its previously stated guidance range for the
fiscal year 2018, anticipating that FFO will be in the range of $2.51 to
$2.60 per fully diluted share and FFOM will be in the range of $2.33 to
$2.43 per fully diluted share. For additional details regarding the
company's 2018 outlook, please see pages S-15 through S-17 of the
Supplemental Analyst Package 1Q 2018. 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, 2018 is
included in Table 5.
Supplemental Information and Earnings Conference Call
Supplemental financial and operating information, as well as this
release, are available in the investor relations section of the American
Campus Communities website, www.americancampus.com.
In addition, the company will host a conference call to discuss first
quarter results and the 2018 outlook on Tuesday, April 24, 2018 at 10:00
a.m. ET (9:00 a.m. CT). The conference call may be accessed by dialing
888-317-6003 passcode 2850172, or 412-317-6061 for international
participants.
To listen to the live webcast, go to www.americancampus.com
at least 15 minutes prior to the call so that required audio software
can be downloaded. A replay of the conference call will be available
beginning one hour after the end of the call until May 8, 2018 by
dialing 877-344-7529 or 412-317-0088 conference number 10117978.
Additionally, the replay will be available for one year at www.americancampus.com.
Non-GAAP Financial Measures
The National Association of Real Estate Investment Trusts ("NAREIT")
currently defines Funds from Operations ("FFO") as net income or loss
attributable to common shares computed in accordance with generally
accepted accounting principles ("GAAP"), excluding gains or losses from
depreciable operating property sales, impairment charges and real estate
depreciation and amortization, 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. We also believe it
is meaningful to present a measure we refer to as FFO-Modified, or
("FFOM"), which reflects certain adjustments related to the economic
performance of our on-campus participating properties and excludes
property acquisition costs, contractual executive separation and
retirement charges, and other non-cash items, as we determine in good
faith. FFO and FFOM should not be considered as alternatives to net
income or 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 are these
measures indicative of funds available to fund our cash needs, including
our ability to pay dividends or make distributions.
The company defines property net operating income ("NOI") as property
revenues less direct property operating expenses, excluding
depreciation, but including allocated corporate general and
administrative expenses.
About American Campus Communities
American Campus Communities, Inc. is the largest owner, manager and
developer of high-quality student housing communities in the United
States. 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
and operational management of student housing properties. As of March
31, 2018, American Campus Communities owned 171 student housing
properties containing approximately 104,800 beds. Including its owned
and third-party managed properties, ACC's total managed portfolio
consisted of 207 properties with approximately 134,400 beds. Visit www.americancampus.com.
Forward-Looking Statements
In addition to historical information, this press release contains
forward-looking statements under the applicable federal securities law.
These statements are based on management's current expectations and
assumptions regarding markets in which American Campus Communities, Inc.
(the "Company") operates, operational strategies, anticipated events and
trends, the economy, and other future conditions. Forward-looking
statements are not guarantees of future performance and involve certain
risks and uncertainties, which are difficult to predict. For discussions
of some risks and uncertainties that could cause actual results to
differ materially from those expressed or implied by the forward-looking
statements, please refer to our filings with the Securities and Exchange
Commission, including our Annual Report on Form 10-K for the year ended
December 31, 2017 under the heading "Risk Factors" and under the heading
"Business - Forward-looking Statements" and subsequent quarterly reports
on Form 10-Q. We undertake no obligation to publicly update any
forward-looking statements, including our expected 2018 operating
results, whether as a result of new information, future events, or
otherwise.
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Table 1
|
American Campus Communities, Inc. and Subsidiaries
|
Consolidated Balance Sheets
|
(dollars in thousands)
|
|
|
|
|
|
|
|
March 31, 2018
|
|
December 31, 2017
|
|
|
(unaudited)
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Investments in real estate:
|
|
|
|
|
Owned properties, net
|
|
$
|
6,543,564
|
|
|
$
|
6,450,364
|
|
On-campus participating properties, net
|
|
|
81,008
|
|
|
|
81,804
|
|
Investments in real estate, net
|
|
|
6,624,572
|
|
|
|
6,532,168
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
55,502
|
|
|
|
41,182
|
|
Restricted cash
|
|
|
28,485
|
|
|
|
23,590
|
|
Student contracts receivable, net
|
|
|
9,726
|
|
|
|
9,170
|
|
Other assets1
|
|
|
288,667
|
|
|
|
291,260
|
|
|
|
|
|
|
Total assets
|
|
$
|
7,006,952
|
|
|
$
|
6,897,370
|
|
|
|
|
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
Secured mortgage, construction and bond debt, net
|
|
$
|
682,295
|
|
|
$
|
664,020
|
|
Unsecured notes, net
|
|
|
1,586,501
|
|
|
|
1,585,855
|
|
Unsecured term loans, net
|
|
|
647,414
|
|
|
|
647,044
|
|
Unsecured revolving credit facility
|
|
|
218,000
|
|
|
|
127,600
|
|
Accounts payable and accrued expenses
|
|
|
52,932
|
|
|
|
53,741
|
|
Other liabilities1
|
|
|
212,754
|
|
|
|
187,983
|
|
Total liabilities
|
|
|
3,399,896
|
|
|
|
3,266,243
|
|
|
|
|
|
|
Redeemable noncontrolling interests
|
|
|
126,999
|
|
|
|
132,169
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
American Campus Communities, Inc. and Subsidiaries stockholders'
equity:
|
|
|
|
|
Common stock
|
|
|
1,366
|
|
|
|
1,364
|
|
Additional paid in capital
|
|
|
4,332,471
|
|
|
|
4,326,910
|
|
Common stock held in rabbi trust
|
|
|
(2,817
|
)
|
|
|
(2,944
|
)
|
Accumulated earnings and dividends
|
|
|
(872,281
|
)
|
|
|
(837,644
|
)
|
Accumulated other comprehensive loss
|
|
|
(2,236
|
)
|
|
|
(2,701
|
)
|
Total American Campus Communities, Inc. and Subsidiaries
stockholders' equity
|
|
|
3,456,503
|
|
|
|
3,484,985
|
|
Noncontrolling interests - partially owned properties
|
|
|
23,554
|
|
|
|
13,973
|
|
Total equity
|
|
|
3,480,057
|
|
|
|
3,498,958
|
|
|
|
|
|
|
Total liabilities and equity
|
|
$
|
7,006,952
|
|
|
$
|
6,897,370
|
|
|
|
|
|
|
|
|
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1.
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|
For purposes of calculating net asset value at March 31, 2018, the
company excludes other assets of approximately $7.3 million related
to net deferred financing costs on its revolving credit facility and
the net value of in-place leases and other liabilities of
approximately $47.3 million related to deferred revenue and fee
income.
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Table 2
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American Campus Communities, Inc. and Subsidiaries
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Consolidated Statements of Comprehensive Income
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(unaudited, dollars in thousands, except share and per share data)
|
|
|
|
|
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Three Months Ended March 31,
|
|
|
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2018
|
|
|
|
2017
|
|
|
|
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Revenues
|
|
|
|
|
Owned properties
|
|
$
|
205,532
|
|
|
$
|
178,831
|
|
On-campus participating properties
|
|
|
10,443
|
|
|
|
10,158
|
|
Third-party development services
|
|
|
846
|
|
|
|
456
|
|
Third-party management services
|
|
|
2,731
|
|
|
|
2,614
|
|
Resident services
|
|
|
857
|
|
|
|
879
|
|
Total revenues
|
|
|
220,409
|
|
|
|
192,938
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
Owned properties
|
|
|
88,060
|
|
|
|
74,957
|
|
On-campus participating properties
|
|
|
3,425
|
|
|
|
3,265
|
|
Third-party development and management services
|
|
|
4,198
|
|
|
|
4,083
|
|
General and administrative1
|
|
|
6,699
|
|
|
|
6,734
|
|
Depreciation and amortization
|
|
|
64,779
|
|
|
|
52,323
|
|
Ground/facility leases
|
|
|
2,842
|
|
|
|
2,357
|
|
Total operating expenses
|
|
|
170,003
|
|
|
|
143,719
|
|
|
|
|
|
|
Operating income
|
|
|
50,406
|
|
|
|
49,219
|
|
|
|
|
|
|
Nonoperating income and (expenses)
|
|
|
|
|
Interest income
|
|
|
1,223
|
|
|
|
1,232
|
|
Interest expense
|
|
|
(23,684
|
)
|
|
|
(14,717
|
)
|
Amortization of deferred financing costs
|
|
|
(1,414
|
)
|
|
|
(1,028
|
)
|
Total nonoperating expense
|
|
|
(23,875
|
)
|
|
|
(14,513
|
)
|
|
|
|
|
|
Income before income taxes
|
|
|
26,531
|
|
|
|
34,706
|
|
Income tax provision
|
|
|
(281
|
)
|
|
|
(257
|
)
|
Net income
|
|
|
26,250
|
|
|
|
34,449
|
|
Net income attributable to noncontrolling interests
|
|
|
(323
|
)
|
|
|
(399
|
)
|
Net income attributable to ACC, Inc. and
Subsidiaries common stockholders
|
|
$
|
25,927
|
|
|
$
|
34,050
|
|
Other comprehensive income
|
|
|
|
|
Change in fair value of interest rate swaps and other
|
|
|
465
|
|
|
|
484
|
|
Comprehensive income
|
|
$
|
26,392
|
|
|
$
|
34,534
|
|
Net income per share attributable to ACC, Inc.
and Subsidiaries common shareholders
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.19
|
|
|
$
|
0.25
|
|
|
|
|
|
|
Diluted
|
|
$
|
0.18
|
|
|
$
|
0.25
|
|
|
|
|
|
|
Weighted-average common shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
136,525,557
|
|
|
|
133,052,444
|
|
|
|
|
|
|
Diluted
|
|
|
137,499,963
|
|
|
|
133,986,322
|
|
|
|
|
|
|
|
|
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1.
|
|
The three months ended March 31, 2017 include $1.1 million of
contractual executive separation and retirement charges incurred in
the first quarter of 2017 with regard to the retirement of the
company's former Chief Financial Officer.
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Table 3
|
American Campus Communities, Inc. and Subsidiaries
|
Consolidated Statements of Funds from Operations
|
(unaudited, dollars in thousands, except share and per share data)
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2018
|
|
|
|
2017
|
|
Net income attributable to ACC, Inc. and Subsidiaries common
stockholders
|
|
$
|
25,927
|
|
|
$
|
34,050
|
|
Noncontrolling interests
|
|
|
322
|
|
|
|
399
|
|
Real estate related depreciation and amortization
|
|
|
63,578
|
|
|
|
51,518
|
|
Funds from operations ("FFO") attributable to common stockholders
and OP unitholders
|
|
|
89,827
|
|
|
|
85,967
|
|
|
|
|
|
|
Elimination of operations of on-campus participating properties
|
|
|
|
|
Net income from on-campus participating properties
|
|
|
(3,369
|
)
|
|
|
(3,247
|
)
|
Amortization of investment in on-campus participating properties
|
|
|
(1,942
|
)
|
|
|
(1,860
|
)
|
|
|
|
84,516
|
|
|
|
80,860
|
|
Modifications to reflect operational performance of on-campus
participating properties
|
|
|
|
|
Our share of net cash flow1
|
|
|
795
|
|
|
|
757
|
|
Management fees
|
|
|
477
|
|
|
|
468
|
|
Contribution from on-campus participating properties
|
|
|
1,272
|
|
|
|
1,225
|
|
|
|
|
|
|
Contractual executive separation and retirement charges2
|
|
|
-
|
|
|
|
1,095
|
|
Funds from operations-modified ("FFOM") attributable to common
stockholders and OP unitholders
|
|
$
|
85,788
|
|
|
$
|
83,180
|
|
|
|
|
|
|
FFO per share - diluted
|
|
$
|
0.65
|
|
|
$
|
0.64
|
|
|
|
|
|
|
FFOM per share - diluted
|
|
$
|
0.62
|
|
|
$
|
0.62
|
|
|
|
|
|
|
Weighted-average common shares outstanding - diluted
|
|
|
138,534,412
|
|
|
|
135,092,966
|
|
|
|
|
|
|
|
|
|
|
1.
|
|
50% of the properties' net cash available for distribution after
payment of operating expenses, debt service (including repayment of
principal) and capital expenditures which is included in
ground/facility leases expense in the consolidated statements of
comprehensive income (refer to Table 2).
|
|
|
|
2.
|
|
Represents contractual executive separation and retirement charges
incurred in the first quarter of 2017 with regard to the retirement
of the company's former Chief Financial Officer.
|
|
|
|
|
Table 4
|
American Campus Communities, Inc. and Subsidiaries
|
Owned Properties Results of Operations
|
(unaudited, dollars in thousands)
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
$ Change
|
|
% Change
|
|
Owned properties revenues
|
|
|
|
|
|
|
|
|
Same store properties
|
|
$
|
181,137
|
|
$
|
177,731
|
|
|
$
|
3,406
|
|
|
1.9
|
%
|
New properties
|
|
|
24,503
|
|
|
87
|
|
|
|
24,416
|
|
|
|
Sold and held for sale properties1
|
|
|
749
|
|
|
1,892
|
|
|
|
(1,143
|
)
|
|
|
Total revenues2
|
|
$
|
206,389
|
|
$
|
179,710
|
|
|
$
|
26,679
|
|
|
14.8
|
%
|
Owned properties operating expenses
|
|
|
|
|
|
|
|
|
Same store properties3 4
|
|
$
|
76,689
|
|
$
|
73,401
|
|
|
$
|
3,288
|
|
|
4.5
|
%
|
New properties
|
|
|
10,804
|
|
|
250
|
|
|
|
10,554
|
|
|
|
Sold and held for sale properties1 5
|
|
|
567
|
|
|
1,306
|
|
|
|
(739
|
)
|
|
|
Total operating expenses
|
|
$
|
88,060
|
|
$
|
74,957
|
|
|
$
|
13,103
|
|
|
17.5
|
%
|
Owned properties net operating income
|
|
|
|
|
|
|
|
|
Same store properties4
|
|
$
|
104,448
|
|
$
|
104,330
|
|
|
$
|
118
|
|
|
0.1
|
%
|
New properties
|
|
|
13,699
|
|
|
(163
|
)
|
|
|
13,862
|
|
|
|
Sold and held for sale properties1
|
|
|
182
|
|
|
586
|
|
|
|
(404
|
)
|
|
|
Total net operating income
|
|
$
|
118,329
|
|
$
|
104,753
|
|
|
$
|
13,576
|
|
|
13.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: The same store grouping above represents properties owned and
operating for both of the entire years ended December 31, 2018 and
2017, which are not conducting or planning to conduct substantial
development, redevelopment, or repositioning activities, and are not
classified as held for sale as of March 31, 2018.
|
|
|
|
1.
|
|
Includes one property sold in 2017, and one property currently in
receivership that is in the process of being transferred to the
lender in settlement of the property's $27.4 million mortgage loan
that matured in August 2017.
|
|
|
|
2.
|
|
Includes revenues that are reflected as Resident Services Revenue on
the accompanying consolidated statements of comprehensive income.
|
|
|
|
3.
|
|
The increase over prior period is primarily due to higher than
expected costs associated to excessive winter storms.
|
|
|
|
4.
|
|
Excluding expenses of approximately $0.5 million related to
excessive winter storms, same store operating expenses would have
increased by only 3.8% and same store NOI would have increased by
0.6%.
|
|
|
|
5.
|
|
Does not include the allocation of payroll and other administrative
costs related to corporate management and oversight.
|
|
|
|
|
|
Table 5
|
American Campus Communities, Inc. and Subsidiaries
|
2018 Outlook(1)
|
(dollars in thousands, except share and per share data)
|
|
|
|
|
|
|
|
Low
|
|
High
|
|
|
|
|
|
Net income
|
|
$
|
93,200
|
|
|
$
|
104,200
|
|
Noncontrolling interests
|
|
|
1,300
|
|
|
|
1,350
|
|
Depreciation and amortization
|
|
|
253,400
|
|
|
|
255,200
|
|
Funds from operations ("FFO")
|
|
$
|
347,900
|
|
|
$
|
360,750
|
|
|
|
|
|
|
Elimination of operations from on-campus participating properties
|
|
|
(12,700
|
)
|
|
|
(12,300
|
)
|
Contribution from on-campus participating properties
|
|
|
4,150
|
|
|
|
4,750
|
|
Elimination of effect of transfer of asset to lender2
|
|
|
(17,000
|
)
|
|
|
(17,000
|
)
|
Funds from operations - modified ("FFOM")
|
|
$
|
322,350
|
|
|
$
|
336,200
|
|
|
|
|
|
|
Net income per share - diluted
|
|
$
|
0.67
|
|
|
$
|
0.75
|
|
|
|
|
|
|
FFO per share - diluted
|
|
$
|
2.51
|
|
|
$
|
2.60
|
|
|
|
|
|
|
FFOM per share - diluted
|
|
$
|
2.33
|
|
|
$
|
2.43
|
|
|
|
|
|
|
Weighted-average common shares outstanding - diluted
|
|
|
138,565,000
|
|
|
|
138,565,000
|
|
|
|
|
|
|
|
|
|
|
1.
|
|
The company believes that the financial results for the fiscal
year ending December 31, 2018 may be affected by, among other
factors:
|
|
|
-
national and regional economic trends and events;
|
|
|
-
the success of leasing the company's owned properties for the
2018-2019 academic year;
|
|
|
-
the timing of acquisitions, dispositions or joint venture
activity;
|
|
|
|
|
|
-
the timing of commencement and completion of construction on
owned development projects;
|
|
|
-
the ability of the company to be awarded and the timing of the
commencement of construction on third-party development projects;
|
|
|
-
university enrollment, funding and policy trends;
|
|
|
-
the ability of the company to earn third-party management
revenues;
|
|
|
-
the amount of income recognized by the taxable REIT subsidiaries
and any corresponding income tax expense;
|
|
|
-
the ability of the company to integrate acquired properties;
|
|
|
-
the outcome of legal proceedings arising in the normal course of
business; and
|
|
|
-
the finalization of property tax rates and assessed values in
certain jurisdictions.
|
|
|
|
2.
|
|
Represents the net effect of a gain on the extinguishment of debt
for one property being transferred to the lender in settlement of
the property's $27.4 million mortgage loan, offset by a loss
expected to be incurred as a result of the transfer to the lender.
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180423006126/en/
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