The Austin-based real estate investment trust reported its 2015 third quarter earnings after the market close on Monday.
American Campus Communities reported third quarter earnings of 1 cent per share on revenue of $180.8 million. Analysts surveyed by Thomson Reuters projected a loss of 1 cent per share on revenue of $169.2 million.
American Campus Communities' sluggish FFO growth limits its upside, Canaccord said.
"With the majority of near-term development funding coming from asset sales, the non-core portfolio continues to dwindle ($600M currently), which could result in ACC opting to either reduce future development spend, sell core assets or issue equity to fund out-year development," the firm said.
Shares of American Campus Communities were down 0.29% to $40.77 in late afternoon trading on Wednesday.
Separately, TheStreet Ratings team rates AMERICAN CAMPUS COMMUNITIES as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
We rate AMERICAN CAMPUS COMMUNITIES (ACC) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, reasonable valuation levels, increase in stock price during the past year and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins.
You can view the full analysis from the report here: ACC