Austin, Texas— American Campus Communities (ACC) has reported financial results for the second quarter ended June 30, 2022.
Second Quarter Operating Results
Revenue for the Austin, Texas-based company totaled $245.7 million during the second quarter — an increase of 17.8 percent from $208.5 million in the second quarter of 2021. Operating income for the quarter increased 80.4 percent to $35.1 million versus $19.4 million during the second quarter of the prior year. ACC attributes both increases to movement out of the COVID-19 pandemic.
Net operating income for the second quarter totaled $4.4 million compared with a net loss of $9.4 million during the same quarter in 2021. Funds from operations (FFO) for the second quarter totaled $71.6 million, up from $56.7 million during the second quarter of 2021.
Same-store net operating income (NOI) was $116.8 million — an increase of 11.2 percent from $105 million during the same quarter of the prior year. Same-store property revenues increased by 8.9 percent and same-store property operating expenses increased by 6.4 percent. NOI for the total-owned portfolio increased 20.6 percent to $125.4 million in the second quarter of 2022, up from $103.9 million during the same period last year.
During the second quarter, ACC delivered 736 beds of its 10-phase residential housing development serving participants in the Disney College Program near Walt Disney World resort in Orlando, Florida. To-date, the company has delivered 7,496 beds representing $450.5 million worth of development at the site. ACC is continuing construction on the remaining phases of the project, named Flamingo Crossings Village, which is expected for completion in 2023. The company also began construction on an off-campus graduate housing project located near the University of Texas at Austin.
Earlier this month, independent proxy advisory firm Institutional Shareholder Services (ISS) recommended that stockholders vote in favor of the previously announced, all-cash acquisition of ACC by Blackstone. The proposed acquisition is expected for completion on August 9, subject to approval by the company’s stockholders and the satisfaction or waiver of other customary closing conditions. Due to the company’s pending acquisition, ACC will no longer provide a financial outlook for 2022.