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American Campus Communities, Inc. (NYSE:ACC) today announced the following financial results for the quarter and year ended December 31, 2012.
Fourth Quarter 2012
Increased quarterly FFOM 55.6 percent to $57.1 million or $0.56 per fully diluted share compared to $36.7 million or $0.50 per fully diluted share in the fourth quarter prior year. Excluding $3.3 million of acquisition expenses, fourth quarter FFOM would have been $60.4 million or $0.59 per fully diluted share.
Increased same store wholly-owned Net Operating Income (NOI) by 2.5 percent over the fourth quarter 2011.
Achieved 97.4 percent same store wholly-owned occupancy as of December 31, 2012.
Awarded a second phase American Campus Equity (ACE®) development at Drexel University with an estimated total development cost of $168.0 million. The 1,316-bed community is scheduled to open for occupancy in Fall 2015.
Awarded a faculty and staff housing project by Princeton University with their desire for an ACE transaction structure. The 326-unit community, Merwick Stanworth Housing, will be delivered in two phases. Phase one is targeting a Summer 2014 completion and phase two is expected to be complete in Summer 2015.
Full Year 2012
Increased 2012 full year FFOM 28.8 percent to $165.0 million or $1.91 per fully diluted share compared to $128.1 million or $1.81 per fully diluted share for the full year 2011. Excluding $9.7 million of acquisition expenses, full year FFOM would have been $174.7 million or $2.02 per fully diluted share.
Increased same store wholly-owned Net Operating Income (NOI) by 3.4 percent over the year ended December 31, 2011.
Acquired 40 off-campus properties totaling $1.8 billion containing 23,441 beds with an average distance to campus of 0.48 miles.
Completed construction and opened 11 owned developments totaling $381.4 million containing 6,703 beds, including six on-campus ACE communities totaling $219.9 million and five owned off-campus communities totaling $161.5 million. The average occupancy of the 11 new developments was 95.2 percent as of December 31, 2012.
Disposed of three assets totaling $54.1 million containing 1,584 beds with an average age of 15.5 years and average distance to campus of 1.8 miles.
Completed and delivered four third-party development projects totaling 2,236 beds at Illinois State University, Northern Illinois University, University of Wyoming and a dining hall at Arizona State University.
Commenced or continued construction on eight owned-development projects totaling approximately $415.3 million and containing 5,258 beds to be delivered in 2013 and 2014 with average distance to campus of 0.1 miles.
Raised approximately $1.3 billion in net proceeds from two follow-on equity offerings, which allowed the company to maintain a strong balance sheet with attractive credit ratios during a high-growth year. The offerings included the issuance of 29,900,000 shares of common stock at a weighted average issue price of $44.04 per share.
Fourth Quarter Operating Results
Revenue for the 2012 fourth quarter totaled $155.7 million, up 48.4 percent from $104.9 million in the fourth quarter 2011 and operating income for the quarter increased $10.2 million or 33.2 percent over the prior year fourth quarter. The increase in revenues and operating income was primarily due to growth resulting from property acquisitions, recently completed development properties, and increased rental rates for the 2012-2013 academic year. Net income for the 2012 fourth quarter totaled $23.7 million, or $0.23 per fully diluted share, compared with net income of $15.8 million, or $0.22 per fully diluted share, for the same quarter in 2011. The increase in net income as compared to the prior year quarter is primarily due to the increases in operating income discussed above and a gain recognized on the disposition of two properties during the 2012 fourth quarter, offset by an increase in interest expense related to loans assumed in connection with property acquisitions. FFO for the 2012 fourth quarter totaled $58.5 million, or $0.57 per fully diluted share, as compared to $39.4 million, or $0.54 per fully diluted share for the same quarter in 2011. FFOM for the 2012 fourth quarter was $57.1 million, or $0.56 per fully diluted share as compared to $36.7 million, or $0.50 per fully diluted share for the same quarter in 2011. Excluding acquisition-related costs, FFO for the 2012 fourth quarter totaled $61.8 million or $0.60 per fully diluted share and FFOM for the 2012 fourth quarter totaled $60.4 million or $0.59 per fully diluted share. A reconciliation of FFO and FFOM to net income is shown in Table 3.