Our supplemental analyst package and our webcast presentation are one and the same. Webcast slides may be advanced by you to follow along. Management will be making forward-looking statements today, the references to the disclosure in the press release on the website, with the slides and SEC filings.Management would like to inform you that certain statements made during this conference call which are not deemed historical facts may be deemed forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934 as amended by the Private Securities Litigation Reform Act of 1995. Although the company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, they are subject to economic risks and uncertainties. The company can provide no assurance that its expectations will be achieved and actual results may vary. Factors and risks that could cause actual results to differ materially from expectations are detailed in the press release and from time-to-time in the company’s periodic filings with the SEC. The company undertakes no obligation to advice or update any forward-looking statements to reflect events or circumstances after the date of this release. Having said all that, I would now like to turn the call over to Bill Bayless, Chief Executive Officer, for his opening remarks. Bill Bayless Thank you Gina. Good morning and thank you all for joining us as we discuss our Q2 2010 results. Let me address the format of our presentation. Greg will address operational results and the leasing status for the upcoming academic year; William Talbot will discuss our investment activities; Jamie Wilhelm will provide an update on our on-campus development activities and Jon will discuss financial results and also give you an update on our guidance. Daniel Perry and I will then lead the Q&A.
Before turning it over to Greg, let me first congratulate the American Campus Corporate and Property staff on a truly exception quarter. Their hard work in efforts this quarter resulted in more than $400 million in external growth via acquisitions, off-campus development and ace. It also produced solid internal growth and net asset value creation in our core and also meaningful activity in our third-party services segment. Our team’s delivering in every area and we want to take this opportunity to thank them publicly.With that, I will turn it over to Greg. Greg Dowell Thanks, Bill. The hard work and dedication of our people have yielded a great quarter. If you turn to page five of the supplemental package, you will see that our second quarter same store NOI increased by 8.2% over Q2 of 2009. This was the result of a 3% increase in revenue, and a decrease in operating expenses of 2.4%. This decrease in operating expenses was largely attributable to a reduction in marketing costs for the quarter of $1.1 million compared to Q2 of the prior year. Utilizing the sophisticated analysis provided by our proprietary lands platform, we were able to significantly reduce our marketing expenses back to historical levels while actually improving our leasing velocity. As you can see on page eight of the supplemental, June 30, 2010 occupancy at our same store wholly owned properties with 93%, compared to 89.1% for the same day in the prior year. As of June 30, occupancy for the totally wholly owned portfolio was 89.6%. If you turn to page nine, we can review the leasing status of the 2010-2011 academic year. As of Friday, July 23, our same-store wholly owned portfolio was 95.1% leased compared to 92.3% leased for the approximate date in the prior year. The same store ACC legacy portfolio was 94.4% leased compared to 92.3% leased for the same date one year ago, while the GMH same store portfolio was 95.9% leased compared to 92.3% leased for the same date prior year. With the current leasing progress, we now expect final fall 2010 same store occupancy to be in the range of 97% to 98%. This compares to a final occupancy of 95.9% in fall 2009. Read the rest of this transcript for free on seekingalpha.com