Austin, Texas — American Campus Communities (ACC) has announced financial results for the first quarter of 2020 and provided an update on pre-leasing for the upcoming academic year.
The company reported a net income of $80.9 million or $0.58 per fully diluted share this year, versus $29.6 million or $0.21 per fully diluted share in the first quarter 2019. ACC also grew same store net operating income (NOI) by 1.2 percent over numbers seen during the first quarter of last year. Same store average physical occupancy was 97 percent for the first quarter 2020, compared to 96.9 percent in 2019.
The company also completed the disposition of a 901-bed community in College Park, Maryland, and was awarded a second phase of on-campus development at Virginia Commonwealth University in Richmond.
“While the start to 2020 was strong and poised for positive company performance, we quickly shifted our focus in March to respond to the COVID-19 pandemic,” says Bill Bayless, CEO of the Austin, Texas-based firm. “Our teams are working tirelessly to respond to the evolving COVID-19 impacts to our residents, our employees and our university partners. Our resident hardship program has been well received and we pledge that every American Campus Communities resident will continue to have a home during this crisis regardless of their ability to pay rent on a timely basis. We will act in good faith — working with every student and family suffering financial hardship on a case-by-case basis — to ensure our residents continue to have a home and the ability to complete their online instruction in an academically-oriented environment.”
As of April 17, 2020, the company’s same-store, wholly-owned portfolio was 76.6 percent pre-leased for the upcoming academic year, as compared to 76.2 percent pre-leased on the same date last year.
The company also continued construction on its $785.8 million development pipeline, which includes expected deliveries in 2020 through 2023. Development projects totaling $279.7 million are scheduled for delivery in May through August 2020. At present, these projects remain on-time and on-budget, and the company has not experienced supply chain disruption or labor shortages that would impact delivery.