Austin, Texas — American Campus Communities (ACC) has announced financial results for the quarter ended Sept. 30, 2021.
The company reported a net loss of $11.4 million or $0.09 per fully diluted share, as compared to a net loss of $19.5 million or $0.15 per fully diluted share in the third quarter 2020. ACC increased Funds From Operations-Modified (FFOM) per fully diluted share by 25 percent to $0.40 or $56.9 million, versus $0.32 or $45.2 million for the third quarter last year.
The Austin, Texas-based company also grew same store net operating income by 10.5 percent versus the third quarter of 2020, with revenues increasing 8.5 percent and operating expenses increasing 6.8 percent.
ACC achieved 95.8 percent opening fall occupancy with 3.3 and 3.8 percent average rental rate growth over the prior year for its 2021 and 2022 same-store portfolios. This compares to the company’s initial expectation of 92 to 94 percent leased with 2.5 to 3.0 and 3.0 to 3.5 percent average rental rate growth.
“We are currently experiencing the most substantial fundamental tailwinds we’ve seen in many years, including strong enrollment demand at tier-one universities, low levels of new supply, and significant activity in on-campus public-private partnerships, highlighted by two new development awards and a new project start,” says Bill Bayless, the company’s CEO.
“Having successfully navigated the disruption caused by the pandemic, the sector achieved an excellent completion to this year’s lease-up, returning to pre-pandemic national occupancy levels and producing attractive rent growth,” he continues. “We have commenced leasing activity for the 2022-2023 academic year and are excited about the prospects to drive further improvements in opening occupancy for fall 2022. We are highly optimistic that the fundamentals of the student housing operating environment provide investors with a unique opportunity for recession resilient, robust internal growth and meaningful earnings growth and net asset value creation in the years ahead.”
The company delivered phase five of the ten-phase Flamingo Crossings Village, located near Walt Disney World Resort, during the third quarter and was awarded third-party development projects on the campuses of Emory University in Atlanta and The University of Texas at Austin.