Investor Presentation - NAREIT Investor Deck June 2020
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Investor
Presentation
NAREIT Investor Deck
June 2020
0
INVESTMENT HIGHLIGHTS
– Best-in-Class company with a proven track record.
– Modernizing an industry in its infancy provides strong growth
potential and cash flow stability. 1200 W. Marshall | Richmond, VA
– Proprietary operating platform supports internal cash flow
growth, margin improvement, and expansion of market share.
– Disciplined and diversified investment strategy.
– Consistent financial performance supported by a conservative
investment grade balance sheet and ample liquidity.
Village at Overton | Lubbock, TX
– ACC’s modern products are desirable in the COVID-19
environment and beyond.
11
University Pointe | Portland, OR
BEST-IN-CLASS
Who we are.
ACC pioneered the modernization of the student housing industry with over $16.4 billion in transactions
since inception.
American Campus Communities (ACC), founded in 1993, is the Transactions since Inception1
largest developer, owner and manager of high-quality student
housing communities in the United States.
$8.1B in Development
$5.8B in Acquisitions
Founding Mission
“…to be the nation’s premier provider of $2.5B in Dispositions
quality student housing communities and
services through a unique understanding and
Comparative Statistics
an unrelenting commitment to students,
2004 IPO Q1 2020
parents, educational institutions and
Enterprise Value : $351M $7.4B2
investors. Our people are our strength, Markets: 12 69
achieving success through a dedication to Properties: 16 166
excellence and integrity.” Beds: 11,773 111,900
Employees: 560 3,1003
Credit Rating: Unrated BBB negative / Baa2 stable4
1. Developments includes both owned and third party projects, properties currently under construction, and properties expected to commence construction during the current calendar year. Dispositions includes transactions completed and under contract.
Acquisitions includes transactions completed. As of 4/20/2020.
2. Based on share price as of 3/31/2020.
3. Employees as of 12/31/2019. 2
4. A credit rating is not a recommendation to buy, sell or hold securities and may be changed or withdrawn at any time.
BEST-IN-CLASS
Where we are.
ACC owns the industry’s preeminent portfolio—located a median distance of only one-tenth of a mile
from campus. 1 Portfolio NOI Composition by Distance to Campus
We primarily focus on developing and owning on-campus and
pedestrian-to-campus properties serving Power 5 conferences and PROPERTIES 34 115 10 1
Carnegie R1 institutions. NOI 35% 59% 6% 0%
94% of NOI within ½ mile from campus
Our investment criteria focuses on differentiated properties in close University
1/2 1 1+
mile mile mile
proximity to campus within submarkets with high barriers to entry. 0.1 miles median distance to campus
Current Portfolio Top 10 Universities by NOI1
ACC ACC Beds as
AY 19-20 Owned % of Total % of Total
University Market Enrollment Beds Enrollment LTM NOI
1 Arizona State University 53,286 7,822 14.7% 9.3%
2 University of Texas at Austin* 51,090 4,724 9.2% 6.5%
3 Drexel University 24,205 3,192 13.2% 5.4%
4 Northern Arizona University 22,791 3,307 14.5% 3.8%
5 Florida State University 42,876 3,666 8.6% 3.6%
6 Virginia Commonwealth University 30,103 2,786 9.3% 2.9%
7 University of Central Florida 55,033 2,045 3.7% 2.8%
8 Texas A&M University 63,859 3,116 4.9% 2.7%
9 University of Kentucky 29,402 2,974 10.1% 2.4%
10 Texas Tech University 38,742 5,020 13.0% 2.3%
41,139 3,865 9.4% 41.8%
Avg Avg Avg Total
Single Property in Market
Multiple Properties in
Market
1. Includes owned properties, properties currently under construction, and properties expected to commence construction during the current calendar year. NOI used for percentage calculations for properties (i) open for the entire trailing 12 month period
are based upon historical data, and (ii) owned for less than the full trailing 12 month period are based upon historical data and management’s estimates. Excludes properties classified as held for sale. Actual results may vary.
*NOI represents ACC’s consolidated interest in these properties. ACC’s economic interest in the University of Texas at Austin portfolio is 55%. 3
MODERNIZATION TO MEET PENT-UP DEMAND
Modernizing an industry.
Composition of student housing should continue to transition toward more modern, purpose built supply.
Modernization is opportunity. Supply in 68 ACC University Markets2
On-campus
– Primarily consists of residence halls built in the 1950’s-60’s designed for the Baby Drive: 12%
Median Age: 12 years
Boom generation.
– The median age of existing on-campus housing exceeds 50 years old in ACC
markets. Purpose Built 23%
– New purpose built living learning communities will replace these antiquated Pedestrian: 11%
dormitories with product meeting the needs of current students. Median Age: 8 years
Off-campus
– Majority of current stock is low density alternate housing such as absentee Alternate Supply
landlord communities and single family residences not designed for today’s On-Campus 55%
student.
22%
– New purpose built development off-campus is replacing this sub-standard
alternate housing with modern purpose-built product.
– Current purpose built communities began in the mid 1990’s. Modernization
• The majority of early communities (pre-2010) were drive properties.
is opportunity.
• Since 2010, the majority of development has been built pedestrian to
campus.1
1. According to the Company’s most recent annual review of overall market composition.
2. According to the Company’s analysis; estimated based on 2019 supply categories divided by academic year 2019/2020 preliminary enrollment within ACC’s 68 university markets. Purpose built reflects certain off-campus properties that may 4
lease by the unit rather than by the bed, but compete with ACC properties in the student housing market.
MODERNIZATION TO MEET PENT-UP DEMAND Manageable new supply. New supply in individual markets can occasionally cause short-term disruption but has been manageable over time. – The new supply landscape has remained consistent in ACC markets since our IPO, amounting to only 1.3% of enrollment each year, on average. – At the current rate of new supply, the obsolete alternate student housing stock is decades away from achieving modernization. – 2020 new supply in ACC markets is expected to be down 20% from 2019 levels. New . Supply in ACC Markets 2006 – 2020E1 Source: Company data 5 1. 2019 and 2020 new supply based on academic year 2019/2020 preliminary total enrollment.
FUNDAMENTAL TAILWINDS
Consistent enrollment growth.
Enrollment growth at ACC targeted universities has remained steady throughout the economic cycle.
– Declining national enrollment statistics over the last decade have been driven by non-traditional students leaving private for-profit universities and
community colleges to return to the workforce as the economy has recovered.
– Public 4-year universities have averaged 1.6% annual enrollment growth since 1970 and have continued at these levels since the Great Recession.
Public 4-year University
Public 4-year Universities Remain in Demand Enrollment Growth (CAGR)
20%
Since 1970 1.6%
10% Since 1980 1.5%
Cumulative Enrollment Growth
Since 1990 1.5%
0%
Since 2000 2.3%
-10% Since 2010 1.6%
-20%
-30%
-40%
2009 2010 2011 2012 2013 2014 2015 2016 2017
Public 4-year Private 4-year Nonprofit Public 2-year Private For-profit Total
Source: National Center for Education Statistics 2018 Table 303.25 (Data through Fall 2017). 6
FUNDAMENTAL TAILWINDS
Value of a college degree remains intact.
Public 4-year universities still provide a good return and student debt is manageable.
– At four year public universities, 34% of students graduate with no debt1.
• Of those graduating with debt, the average student loan balance is only $26,9001.
– $23,000 salary differential between college graduates and high school graduates2.
– Annual average in-state tuition costs at the 60 public universities served by ACC is less than $11,000.
– Annual net tuition and fees is less than $10,000 for 77% of students at four-year public institutions (after grant aid)3.
– Student loan default rates average sub-4% at Power 5 and Carnegie R1 institutions.
Average Earnings by Level of Education2 Student Debt Levels1 and Default Rates4
$60,000 14% $45,000 16%
13% $23,000 Sub-4% default rates
$50,000
incremental $54,990 12%
$40,000
at Power 5 and R1 14%
14%
earnings $35,000 institutions 12%
10%
$40,000 $30,000
10%
8% $25,000
$30,000 7% $35,000
8%
6% $20,000 7% 7%
$25,980 $31,990
6%
$20,000 4% $15,000
4%
4%
$10,000
$10,000 3%
2% 2%
$5,000
$26,900 $31,450 $39,900
$0 0% $0 0%
Less than high High school Some college, Bachelor's or 4-year Public 4-year Private Non- 4-year Private For-
school completion no bachelor's higher degree Profit Profit
completion degree
Median Annual Earnings ($) Unemployment Rate (%) Average Loan Balance ($) Default Rate (%)
Source: Company data
1. TICAS, “Quick Facts about Student Debt”, April 2019. 3. The College Board, Trends in College Pricing 2018. 7
2. National Center for Education Statistics 2018 Table 502.30 and Table 501.80. For persons 25-34 years old. 4. Federal Student Aid an Office of the U.S. Department of Education, September 26, 2018.
THE ACC ADVANTAGE
Over a decade of continued value creation.
ACC has achieved 15 consecutive years of internal growth in same store rental rate, rental revenue, and NOI.
Total Wholly-Owned NOI per Year1
($ millions)
Same Store Performance since IPO
Average Fall
Occupancy
97.5%
Average Rental
Rate Growth 2.5%
Annual Dividend Per Share
Average Rental
Revenue Growth2 3.2%
Average NOI
Growth 3.8%
1. See Appendix for the applicable definitions and reconciliation.
2. Rental revenue growth based on change in Fall occupancy plus final change in rental rate as reported in the Company’s 3Q analyst package. 8
THE ACC ADVANTAGE
Historically recession resistant cash flows.
Stable Performance Through Cycles
200 40.0%
180 30.0%
160
Year over Year Growth
20.0%
140
Indexed Growth
10.0%
120
0.0%
100
-10.0%
80
60 -20.0%
40 -30.0%
20 -40.0%
0 -50.0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
4 Yr Public University Enrollment Same Store NOI Growth (Indexed) Multifamily Same Store NOI Growth (Indexed)
1 S&P 500 Annual Return
Portfolio Improvement Since Last Downturn
Distance to Campus (% of Beds)
ACC’s recession resilient cash flows have produced similar same store
< 1/2 Mile 1 Mile 1+ Miles
NOI growth to multifamily, with less volatility throughout the economic 2009 58% 22% 20%
cycle. 2019 93% 7% 0%
Strategic capital recycling has further strengthened portfolio quality relative % of Beds On-Campus
to last downturn. 2009 2019
8% 26%
Sources: U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS), Fall Enrollment component final data (2002, 2003, 2006 - 2016) and provisional data (2004, 2005, 2017). ACC Research.
1. Multifamily peer group includes AVB, AIV, EQR, ESS, CPT, MAA, UDR.
9
Note: 2018 & 2019 enrollment growth based on ACC portfolio. NCES data not yet available.THE ACC ADVANTAGE
Management team advantage.
Innovative products and services, new ways of thinking, and continual self-evaluation maintain our
competitive advantage and allow us to meet the emerging needs of an ever-changing marketplace.
Grass Roots Management Industry Leadership
Texan by Nature 20 Honoree
26
Senior Hi, How Are You Project Sponsor
Management Team Great Place to Work® Certification
Members began America’s 100 Most Trustworthy Companies
Careers as RA’s 37 Innovator Awards
28 Pillars of the Industry Awards (NAHB)
Innovative Product Design
Focus on creating a unique sense of
community through shared living at a
price point that previously did not
exist.
Standard
Deviation
10THE ACC ADVANTAGE
Operating platform advantage.
ACC’s core competency lies in its proprietary operating platform built on internally developed systems and
business intelligence which drives our ability to consistently outperform.
Competitors ACC
Leasing
Mail Website Traditional Targeted Social University Brand
Medium Ads / SEO Media Relationships Value
Operations/
Revenue
Management
Pushes Costs Manual Multifamily Out- Centralized Proprietary LAMS and
to Field of-the-box Apps Corporate Support Next Gen Systems
Investment
Decision
Making
Lack of Analytics Business Portfolio
Market / Industry Data Standard Intelligence Optimization
Deviation
11DISCIPLINED AND DIVERSIFIED INVESTMENT STRATEGY
Creating value through development.
ACC has consistently delivered accretive developments throughout the economic cycle, while also
increasing portfolio quality.
20%
19%
ACC Estimated Unlevered IRRs
15%
15%
The Summit | Philadelphia, PA
10%
11%
0.1
Average miles to
campus for ACC’s
5% developed assets
0%
2005-2009 2010-2014 2015-2017
6 Projects 25 Projects 16 Projects
LightView | Boston, MA
Source: Company estimate of internal rate of returns (IRRs) on ACC designed developments. Terminal economic cap rate of 4.25% . Cash flows include property management fee and annual capital expenditures of $175/bed.
12DISCIPLINED AND DIVERSIFIED INVESTMENT STRATEGY
Build for the masses, not the classes.
ACC’s properties are strategically positioned to target all student demographics with a focus on
affordability.
ACC Effective Rental Rates versus
Competitive Set (% of ACC Properties)
Better Product at a Better Price Point
13
Source: Data from RealPage Axiometrics’ Student Housing Performance Time Series by Month report as of 10/24/2019. Market statistics are based on all properties tracked by RealPage in ACC’s 69 markets located within 1 mile from campus with effective rental rate data for September 2019.DISCIPLINED AND DIVERSIFIED INVESTMENT STRATEGY
Value creation through external growth.
ACC produces stable and consistent same store NOI growth and has a proven ability to deliver accelerated
results during periods of portfolio expansion.
Opportunity set still
provides occupancy upside
Estimated Total 5 Year Avg. Final Fall Occupancy3
Rental Rate Occupancy SSNOI Property
FY SSRev Growth Growth Impact from SSNOI Count
American Campus 97.2%
Year Growth1 (Bps)1 (Bps)1 Scale (Bps)2 Growth1 Growth1 RealPage 175 94.3%
Average 3.0% 229 69 2 3.9% 15.9%
2014-2018 Average 2.5% 258 (2) (58) 2.6% 0.1%
2005-2013 Average 3.3% 213 109 45 4.6% 24.7% Incremental value
+80 bps (45 bps) +111 bps +103 bps +200 bps creation through
long-term M&A
During periods of M&A growth, ACC drives outsized same store revenue growth from occupancy improvement, while same store
revenue and NOI growth both benefit from platform efficiencies and scale.
Without M&A, same store revenue growth is limited to rental rate increases, which have improved with portfolio refinement, and the
benefits of occupancy, platform efficiency, and scale are lost.
As the long-term industry consolidator, ACC has significant opportunity to return to higher internal growth.
Source: Internal company data and public filings.
1. Based on calendar year results.
2. Same store NOI (SSNOI) impact from scale estimated based on actual results versus estimated inflationary G&A expense per property, adjusted for property count growth.
14
3. RealPage Axiometrics’ Student Housing Supply and Demand Model.STRONG BALANCE SHEET
Balance sheet positioned to weather disruption.
The company benefits from broad access to capital, ample liquidity and limited near-term debt maturities.
Balance Sheet Management Balance Sheet Liquidity (in millions)1
Investment Grade Credit Profile Revolver Capacity $1,000.0
• BBB negative / Baa2 stable2.
Drawn to Date ($609.7)
• Provides access to broadest set of capital options.
• Consistent cash flows and credit statistics. Available to Draw $390.3
Cash and Cash Equivalents $176.8
Maintain a staggered debt maturity schedule
• No remaining 2020 maturities and limited mortgage Total $567.1
maturities in 2021.
Broad access to capital
• ACC has raised $6.0 billion from dispositions, joint Debt Maturity Schedule1
ventures and capital markets activity since the $1,000 Unsecured Notes
beginning of 2015.
$900 On-Campus Participating Properties
Access to GSE’s and other secured debt provides flexibility $800 Unsecured Term Loans
$200
Unsecured Revolving Credit Facility
Manageable development exposure with only 1.5-3.2% of $700
gross assets in annual developments through 2023 Mortgage Loans
$600
• $355 million development cost remaining to fund is
$500
covered by current liquidity.
$400
$610 $400 $2
$300
$400 $400
$200 $25 $400 $400
$330
$100 $168 $134
$26 $12 $9 $40
1. As of March 31, 2020. $0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029+
2. A credit rating is not a recommendation to buy, sell, or hold securities and may be changed or withdrawn at any time.
15Current Business Update
Manzanita | Tempe, Arizona
1616CURRENT BUSINESS UPDATE
Recent highlights.
ACC reported a solid start to the year on its first quarter call.
– First quarter 2020 summary.
• 1Q 2020 FFOM per share of $0.70 versus initial guidance of $0.67-$0.69, outperforming
budgeted results every month of the quarter.
• Completed the disposition of The Varsity located in College Park, Maryland for proceeds
of $148 million, representing a 4.1% economic cap rate.
• Announced future on-campus developments at MIT and Virginia Commonwealth
University.
Tooker House | Tempe, AZ
• Development properties have incurred no disruption in construction and are expected to
be delivered on-time and on-budget.
– June 1st NAREIT update summary.
• Same store owned portfolio was 82.6% preleased compared to 84.9% preleased for the
same date prior year.
• 94.8% of residents have made their April rent payments, representing $3.0 million of
delinquency, of which $1.7 million has been abated through the company’s Resident
Hardship Program.
• 93.3% of residents have made their May rent payments, representing $3.8 million of
delinquency, of which $2.6 million has been abated through the company’s Resident
Hardship Program.
• 47 of the 68 universities the company serves have confirmed plans for a return to in- Lightview | Boston, MA
person classes this fall.
17CURRENT BUSINESS UPDATE
Fall picture starting to become more clear.
Students are leasing beds for this fall, especially as schools clarify plans.
– 47 of the 68 universities served by ACC are already planning for in-person classes in the fall, while 12 are still considering
a range of scenarios or a hybrid model.
– 78% of same store beds are located at universities planning for in-person classes in the fall.
• These beds are 83.1% preleased, roughly inline with the prior year’s pace.
– Only two same store properties are at universities currently planning for mostly online classes, one of which is under a
three-year master lease.
Fall Curriculum Plans for ACC’s 68 University Markets 1 COVID-19 Leasing Update2
Still Pre-Leasing Status % of
Considering a Same
Range of Current Prior Variance Design Store
Scenarios, 7, Leases Year % Year % % Beds Beds
Proposing 10%
Hybrid Model, 2021 Same Store Owned Properties
5, 7% 83.1% 83.8% (0.7% ) 74,086 78%
Planning for In-Person
Planning for Planning for Online 89.7% 95.7% (6.0% ) 1,012 1%
Online, 3, 5%
Proposing Hybrid Model 68.5% 70.9% (2.4% ) 4,877 5%
Still Considering a Range of Scenarios 86.7% 95.9% (9.2% ) 8,489 9%
Waiting to
Decide, 6, 9% Planning for Waiting to Decide 81.5% 91.0% (9.5% ) 6,890 7%
In-Person, 47,
Total 2021 Same Store Owned Properties 82.6% 84.9% (2.3%) 95,354 100%
69%
1. Source: The Chronicle of Higher Education data as of May 31, 2020. Note: The Chronicle of Higher Education currently does not track the University of Central Florida which is considering a range of scenarios and is included as such in the above chart. 18
2. Company Data as of May 31, 2020.CURRENT BUSINESS UPDATE
COVID-19 strategic response.
In response to COVID-19, ACC adopted eight guiding principles to “do the right thing” by all stakeholders.
1) Maintain a healthy and academically oriented environment by implementing CDC guidelines in regard to cleaning,
sanitizing and social distancing.
2) Be compassionate and provide financial support to residents and their families financially impacted by the COVID-19 crisis.
3) Strive to ensure all ACC team members have a safe, healthy and productive work environment.
4) Work with ACE university partners to understand their individual unique challenges during the pandemic in an effort to help
them implement their plans and accommodate their decisions with regard to housing refunds.
5) Attempt to limit negative financial and operational impacts to the period directly associated with this crisis.
6) Adapt marketing and leasing strategies to successfully complete the 2020/2021 academic year lease-up.
7) Maintain ample balance sheet liquidity to withstand the duration of the crisis.
8) Reflect on lessons learned to improve future products, services and operational policies, as well as our investment
strategies and standards.
19CURRENT BUSINESS UPDATE
Universities’ initial response to COVID-19.
Universities’ decisions had unintended consequences that might have been avoidable with more time and data.
– Nearly all universities that ACC serves moved to some form of online education for the remainder of the Spring 2020
semester and urged students to vacate on-campus residence halls due in part to their inability to accomplish CDC
guidelines and meet social distancing standards in their older residence halls containing community restrooms.
– The universities’ decisions, made in crisis with a great sense of urgency and little time to fully assess the future
impact, had four unintended consequences:
1) For many students, their college housing is their only home, leaving them with nowhere to go;
2) Many students did not want to go home and risk exposing parents and grandparents who are likely in a higher risk category
for complications from COVID-19;
3) The manner in which universities, as landlords, required or “highly suggested” students leave on-campus housing fueled
demand for student refunds; and
4) The universities’ actions put public relations, media and, at times, political pressure on private, off-campus landlords to
consider giving refunds.
20CURRENT BUSINESS UPDATE
Universities’ plan moving forward.
University administrators are developing plans to resume in-person classes for the fall.
– To assist in reopening plans, ACC has reached out to its partner universities to provide student housing assessments and
market data regarding the availability of total student housing supply in their markets and how each product type enables
implementation of CDC social distancing guidelines.
– The majority of the 68 universities within ACC’s owned markets have publicized on their websites that they are working
towards holding in-person classes in the fall with some universities even working towards holding in-person classes for some
portion of the summer term.
– To more align their housing with CDC guidelines and consumer preferences, universities are considering de-densifying older,
community bath residence halls, which could increase the number of students requiring private off-campus housing.
– University administrators are implementing plans to accommodate remote work for at-risk students and staff and lower
overall classroom and on-campus facilities density.
– Universities are adjusting admittance ratios and deadlines to accomplish originally targeted enrollment levels.
21CURRENT BUSINESS UPDATE
A return to campus is appropriate.
In-person education leads to best student outcome.
– Benefits of in-person education.
• Active learning as a result of mentoring from instructors, tutoring from grad students,
and in-person experiences from labs and group projects.
“77% of students say distance learning is
• The exposure, debate, and collaboration with students of different belief systems and worse or much worse than in-person
socioeconomic backgrounds. classes.”
• The personal growth and life experiences that come from beyond the classroom.
-College Reaction/Axios Poll April 10-12th
– Drawbacks of online education.1
• Increases the probability that a student will drop out of school.
The Pandemic has Reinforced the Importance of a Degree2
• Students average almost half a letter grade lower in online classes.
20.0%
• Disproportionately negatively impacts the students struggling the most.
18.0%
– 4-year graduates have been less impacted by the financial fallout 16.0%
18.1%
from COVID-19.
Unemployment Rate
14.0%
• Since December 2019, the unemployment rate for non-degree earners has increased 12.0%
over 1,400 basis points while the labor force fell 9%. 10.0%
8.0%
• The unemployment rate spread between degree earners and non-degree earners 8.4%
6.0%
increased from 210 basis points to 970 basis points from December 2019 to April 2020.
4.0%
4.0%
2.0%
1.9%
0.0%
Bachelor's degree and higher No college education
1. Brookings Institute, “Promises and pitfalls of online education, June 9, 2017.
Dec-19 Apr-20
2. BLS, “Employment Situation News Release”, May 8, 2020. 22CURRENT BUSINESS UPDATE
ACC’s modern properties are a solution.
ACC’s student housing properties remain desirable to students and parents.
– Modern student housing product types fulfill CDC social distancing
guidelines.
• Resident’s ability to personally control their environment and sanitization while performing
basic living functions.
• Ability of residents within a unit to effectively isolate within their residence and mitigate
interaction with larger groups.
• Spatial comfort during times of desired extended isolation.
– Student housing can be divided into three general product types
that meet these objectives to varying degrees.
• Apartment-style student housing.
• In-suite bathroom residence halls.
• Community bath residence halls.
– ACC’s modern housing remains desirable and continues to lease
under the premise that students will reside in their college
apartments whether classes are in-person or online.
• In the months of March and April, ACC experienced an increase in move-ins, welcoming
almost 1,500 new residents, many of which were displaced as a result of universities
closing on-campus housing.
• For the upcoming academic year, which includes the period during shelter-in-place orders,
ACC has had fewer cancellations than the prior year.
23CURRENT BUSINESS UPDATE
Apartment-style student housing.
Apartment-style beds make up 86% of ACC’s total portfolio.
4 Bedroom – 2 Bathroom 4 Bedroom – 4 Bathroom
Apartment Apartment
26 West, Austin, TX Vista del Sol, Tempe, AZ
Apartment-style student housing During the pandemic, all of the During the period of March 16th to April
represents the most desirable product ACC student apartment 17th, one of the greatest periods of
with in-unit bathrooms, living rooms communities have remained open pandemic uncertainty,
and full kitchens. This permits students and defined as essential we executed nearly 5,000 leases for Fall
to easily control and sanitize their housing services by all 2020 demonstrating the continued
overall environment. governmental entities that issued desirability for ACC’s modern product
shelter-in-place orders. type among students and parents.
24CURRENT BUSINESS UPDATE
In-suite bathroom residence halls.
In-suite bathroom residence hall beds make up 12% of ACC’s total portfolio.
1 Bedroom – 1 Bathroom 2 Bedroom – 1 Bathroom 2 Bedroom – 1 Bathroom
Double Occupancy Double Occupancy Single Occupancy
The Suites, Flagstaff, AZ Fairview House, Indianapolis, IN Barret Honors College Residential Complex, Tempe, AZ
In-suite bathroom residence halls (regardless of single or For each meal service, residents rely upon the housing
double occupancy) are desirable in that students can provider to implement social distancing seating as well as
control and sanitize their unit and bathroom and they to adjust service operations to ensure touch contamination
provide some dining flexibility with microwaves and mini- amongst the diners is mitigated.
refrigerators.
25CURRENT BUSINESS UPDATE
Community bath residence halls.
Community bath residence hall beds make up only 2% of ACC’s total portfolio.
Traditional Residence Hall
Community Bath
Gladding Residential Center, Richmond, VA
Community bath residence halls are These residence halls are There are several ways to address the
usually defined the least desirable in light of the challenges posed by this product type
as a series of double-occupancy coronavirus, and offer the biggest including, but not limited to, unit
accommodations that share challenge in mitigating dedensification, installing automated
communal bathrooms located outside the spread of infectious disease given fixtures and antimicrobial surfaces and
of the actual living unit the need to use and share extensive on-going cleaning and
with as many as a dozen to several facilities outside of your living unit with sanitization by a full-time attendant.
dozen other floor residents. a large number of students
outside of your unit household.
26FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES
In addition to historical information, this presentation contains forward-looking statements under the applicable federal securities law. These statements are based on
management’s current expectations and assumptions regarding markets in which American Campus Communities operates, operational strategies, anticipated events
and trends, the economy, and other future conditions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties,
which are difficult to predict. For discussions of some risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the
forward-looking statements, please refer to our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended
December 31, 2019 under the heading “Risk Factors” and under the heading “Business - Forward-looking Statements” and subsequent quarterly reports on Form 10-Q.
We undertake no obligation to publicly update any forward-looking statements, including our expected 2020 operating results, whether as a result of new information,
future events, or otherwise.
This presentation contains certain financial information not derived in accordance with United States generally accepted accounting principles (“GAAP”). These
items include earnings before interest, tax, depreciation and amortization (“EBITDA”), net operating income (“NOI”), funds from operations (“FFO”) and FFO-Modified
(“FFOM”). The National Association of Real Estate Investment Trusts (“NAREIT”) currently defines FFO as net income or loss attributable to common shares
computed in accordance with GAAP, excluding gains or losses from depreciable operating property sales, plus real estate depreciation and amortization, and
after adjustments for unconsolidated partnerships and joint ventures. The Company presents FFO because it considers FFO an important supplemental
measure of its operating performance and believes it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs. We also
believe it is meaningful to present FFOM, which reflects certain adjustments related to the economic performance of its on-campus participating properties,
impairment charges, losses on early extinguishment of debt related to property dispositions, and other non-cash charges. FFO and FFOM should not be considered
as alternatives to net income or loss computed in accordance with GAAP as an indicator of the Company's financial performance or to cash flow from operating
activities computed in accordance with GAAP as an indicator of its liquidity, nor are these measures indicative of funds available to fund its cash needs,
including its ability to pay dividends or make distributions. The Company defines property NOI as property revenues less direct property operating expenses,
excluding depreciation, but including allocated corporate general and administrative expenses.
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