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American Campus Communities, Inc. Reports Third Quarter 2020 Financial Results

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American Campus Communities, Inc. (NYSE:ACC) today announced the following financial results for the quarter ended September 30, 2020.

Highlights

  • Reported net loss attributable to ACC of $19.5 million or $0.15 per fully diluted share, versus net income of $20.2 million or $0.14 per fully diluted share in the third quarter 2019.
  • Reported FFOM of $45.2 million or $0.32 per fully diluted share versus $64.1 million or $0.46 per fully diluted share for the third quarter prior year.
  • Same store net operating income (“NOI”) decreased by 14.0 percent versus the third quarter 2019, as revenues decreased 9.3 percent and operating expenses decreased 5.2 percent. Same store revenues were impacted by approximately $15.0 million of rent relief, lost revenues from summer camps and conferences, waived fees, increased uncollectible accounts primarily associated with previous academic year leases, and other COVID-19 related items. In addition, due to the decrease in occupancy of the same store portfolio for Academic Year 2020-2021, same store revenues for the quarter were approximately $8.6 million below those anticipated prior to the impacts of COVID-19.
  • Received payments for approximately 97 percent of rent for the month of September, the first full month of the new academic year.
  • Achieved an average rental rate increase of 1.1 percent and 90.3 percent leased for 2021 same store properties as of September 30, 2020 versus 97.4 percent for the same date prior year.
  • Delivered two owned American Campus Equity (ACE) developments and the second phase of the Disney College Program project into service on schedule and within budget.
  • Commenced construction on a third-party on-campus development project at Georgetown University. The 476-bed development is located four blocks from the United States Capitol and is tracking LEED Platinum certification.
  • Earned Great Place to Work„¢ certification based on extensive ratings provided by employees in anonymous surveys, resulting in 97 percent of employees responding that ACC is a great place to work, 98 percent agreeing that management is honest and ethical in its business practices and that 98 percent are proud to tell others they work at ACC.
  • Recognized for the second consecutive year as an honoree of Texan by Nature 20 (TxN20), an official ranking of the top 20 companies in Texas for its leadership and commitment to conservation and sustainability.

While the COVID-19 pandemic has presented many challenges for us all, we are pleased with the outcome of the Fall 2020 lease-up and the consumer sentiment reflecting students desire to be in the college environment with their peers regardless of the method of curriculum delivery. We are also encouraged that our collection rates have been improving, with approximately 97 percent of rent being paid for the month of September versus the downward trend being experienced in other sectors, said Bill Bayless, American Campus Communities CEO. Once again, the student housing industry exhibited a large degree of resiliency in the Fall 2020 lease-up, with Axiometrics reporting growth in same store rental rates across the industry. More broadly, we are encouraged by the universities policies and procedures this fall as these institutions continue to promote a safe environment to promote academic achievement and personal growth among students. In recent weeks, several universities have announced planned expansions of in-person activities for the Spring 2021 term based upon the success of their current operating policies as we continue to progress toward a return to normalcy throughout the 2020-2021 academic year.

Third Quarter Operating Results

Revenue for the 2020 third quarter totaled $202.7 million versus $227.7 million in the third quarter 2019, and operating income for the quarter totaled $8.2 million versus $27.3 million in the prior year third quarter. The decrease in revenue and operating income was primarily due to the impacts of COVID-19, including a decrease in owned properties occupancy from the Academic Year 2020-2021 lease-up, with owned property revenues for the quarter declining approximately $12.6 million versus those initially anticipated prior to the impact of COVID-19. Additionally, COVID-19 related rent abatements, early lease terminations, lost revenue from summer camps and conferences, increased uncollectible accounts primarily associated with previous academic year leases and waived fee income totaled approximately $15.1 million, partially offset by a decrease in owned properties operating expenses of $5.3 million. Net loss for the 2020 third quarter totaled $19.5 million, or $0.15 per fully diluted share, compared with net income of $20.2 million, or $0.14 per fully diluted share for the same quarter in 2019. FFO for the 2020 third quarter totaled $45.0 million, or $0.32 per fully diluted share, as compared to $86.0 million, or $0.62 per fully diluted share for the same quarter in 2019. FFOM for the 2020 third quarter was $45.2 million, or $0.32 per fully diluted share, as compared to $64.1 million, or $0.46 per fully diluted share for the same quarter in 2019. A reconciliation of FFO and FFOM to net income is provided in Table 3.

NOI for same store properties was $81.8 million in the quarter, a decrease of 14.0 percent from $95.0 million in the third quarter 2019. Same store property revenues decreased by 9.3 percent and same store property operating expenses decreased by 5.2 percent versus the prior year quarter. NOI for the total owned portfolio decreased 14.2 percent to $85.8 million for the quarter from $100.0 million in the comparable period of 2019. A reconciliation of same store NOI to total NOI is provided in Table 4.

Portfolio Update

Developments

During the quarter, the company completed the $46.9 million second phase of the Disney College Program development on schedule and within budget. Due to the COVID-19 related temporary suspension of the Disney College Program, the phase was not occupied as originally scheduled. Walt Disney World Resort continues to take a measured and phased approach to opening and is currently reviewing the timing for resuming the Disney College Program and the related occupancy of the project. In support of the relationship, Walt Disney World has agreed that ground rent will not commence until occupancy occurs and is also in discussions with ACC to market and lease the project to a broader rental market until the internship program is resumed to a level at which participants can fully occupy the available beds. The company continues construction on the remaining phases of the project, which are expected to be completed as originally anticipated through 2023. Collectively, the Disney College Program project represents $614.6 million in development cost and the company still expects to meet its original targeted stabilized development yield of 6.8 percent.

During the quarter, the company also completed two development projects totaling $170.9 million on the campuses of the University of Southern California Health Sciences and San Francisco State University on schedule and within budget. Due primarily to university policies related to COVID-19, initial occupancy levels for these new developments are below those originally anticipated but the company currently expects to meet the targeted stabilized development yields of 6.25 percent for Academic Year 2021-2022.

Third-Party Services

The company commenced construction on a 476-bed third-party on-campus development project with Georgetown University, which is located on Georgetowns Capitol Campus and is tracking LEED Platinum certification. The company expects to earn $3.0 million in development fees throughout the development period and anticipates providing management services for the project upon completion.

Capital Markets

As of September 30, 2020, the company exhibited a healthy balance sheet with ample liquidity including approximately $44.4 million in cash and $723.3 million available on its unsecured revolving credit facility. In addition, there are no remaining debt maturities in 2020 and approximately $72.3 million in planned development expenditures for the remainder of the year.

At-The-Market (ATM) Share Offering Program

The company did not sell any shares under the ATM during the quarter.

COVID-19 Update

The company continues to implement its COVID-19 response plan consistent with the eight principle objectives previously reported. The company continues to collaborate in good faith with its university partners, and at the request of one of these partners, agreed to refund a portion of students rent that had on-campus lease terms spanning the third and fourth quarter. During the third quarter, refunded rent totaled $2.1 million and the company anticipates an additional $1.2 million for the fourth quarter of 2020, as compared to the $15.1 million in on-campus rent refunds provided during the second quarter of 2020. No other rental refunds related to the companys on-campus ACE properties are being discussed at this time.

During the quarter, the company collected an average of 94.6 percent of rent, representing total delinquency of approximately $8.5 million. This compares to 93.7 percent during the second quarter of 2020, which represented total rent delinquency of $10.4 million. With the inception of new lease contracts for Academic Year 2020-2021, the company experienced substantial improvement in collections with 96.9 percent of September rent being paid.

As previously announced, during the second quarter, the company formed a Resident Hardship Program to provide relief on a case-by-case basis to those residents and families who have endured financial hardship due to the COVID-19 pandemic. For the months of July through September, of the total $8.5 million in delinquent rent noted above, the company granted approximately $4.7 million in rent relief to residents under the Resident Hardship Program.

Supplemental Information and Earnings Conference Call

Supplemental financial and operating information, as well as this release, are available in the investor relations section of the American Campus Communities website, www.americancampus.com. In addition, the company will host a conference call to discuss third quarter results and the 2020 outlook on Tuesday, October 27, 2020 at 10:00 a.m. ET (9:00 a.m. CT). The conference call may be accessed by dialing 888-317-6003 passcode 1389446, or 412-317-6061 for international participants.

To listen to the live webcast, go to www.americancampus.com at least 15 minutes prior to the call so that required audio software can be downloaded. A replay of the conference call will be available beginning one hour after the end of the call until November 10, 2020 by dialing 877-344-7529 or 412-317-0088 conference number 10148202. Additionally, the replay will be available for one year at www.americancampus.com.

Non-GAAP Financial Measures

The National Association of Real Estate Investment Trusts (“NAREIT”) currently defines Funds from Operations (“FFO”) as net income or loss attributable to common shares computed in accordance with generally accepted accounting principles (“GAAP”), excluding gains or losses from depreciable operating property sales, impairment charges and real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. We present FFO because we consider it an important supplemental measure of our operating performance and believe 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 a measure we refer to as FFO-Modified, or (FFOM), which reflects certain adjustments related to the economic performance of our on-campus participating properties and excludes property acquisition costs and other non-cash items, as we determine in good faith. FFO and FFOM should not be considered as alternatives to net income or loss computed in accordance with GAAP as an indicator of our financial performance or to cash flow from operating activities computed in accordance with GAAP as an indicator of our liquidity, nor are these measures indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions.

The company defines property net operating income (NOI) as property revenues less direct property operating expenses, excluding depreciation, but including allocated corporate general and administrative expenses.

About American Campus Communities

American Campus Communities, Inc. is the largest owner, manager and developer of high-quality student housing communities in the United States. The company is a fully integrated, self-managed and self-administered equity real estate investment trust (REIT) with expertise in the design, finance, development, construction management and operational management of student housing properties. As of September 30, 2020, American Campus Communities owned 166 student housing properties containing approximately 111,900 beds. Including its owned and third-party managed properties, ACC’s total managed portfolio consisted of 204 properties with approximately 139,900 beds. Visit www.americancampus.com.

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements under the applicable federal securities law. These statements are based on managements current expectations and assumptions regarding markets in which American Campus Communities, Inc. (the Company) 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. These risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward looking-statements include those related to the COVID-19 pandemic, about which there are still many unknowns, including the duration of the pandemic and the extent of its impact, and those discussed in 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 preleasing activity or expected full year 2020 operating results, whether as a result of new information, future events, or otherwise.

Table 1

American Campus Communities, Inc. and Subsidiaries

Consolidated Balance Sheets

(dollars in thousands)

 

 

 

 

 

 

 

September 30, 2020

 

December 31, 2019

 

 

(unaudited)

 

 

Assets

 

 

 

 

 

 

 

 

 

Investments in real estate:

 

 

 

 

Owned properties, net

 

$

6,704,952

 

 

$

6,694,715

 

On-campus participating properties, net

 

 

71,156

 

 

 

75,188

 

Investments in real estate, net

 

 

6,776,108

 

 

 

6,769,903

 

 

 

 

 

 

Cash and cash equivalents

 

 

44,449

 

 

 

54,650

 

Restricted cash

 

 

23,528

 

 

 

26,698

 

Student contracts receivable, net

 

 

22,008

 

 

 

13,470

 

Operating lease right of use assets 1

 

 

458,330

 

 

 

460,857

 

Other assets 1

 

 

257,101

 

 

 

234,176

 

 

 

 

 

 

Total assets

 

$

7,581,524

 

 

$

7,559,754

 

 

 

 

 

 

Liabilities and equity

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

Secured mortgage, construction and bond debt, net

 

$

740,128

 

 

$

787,426

 

Unsecured notes, net

 

 

2,374,680

 

 

 

1,985,603

 

Unsecured term loans, net

 

 

199,385

 

 

 

199,121

 

Unsecured revolving credit facility

 

 

276,700

 

 

 

425,700

 

Accounts payable and accrued expenses

 

 

87,638

 

 

 

88,411

 

Operating lease liabilities 2

 

 

483,694

 

 

 

473,070

 

Other liabilities 2

 

 

202,775

 

 

 

157,368

 

Total liabilities

 

 

4,365,000

 

 

 

4,116,699

 

 

 

 

 

 

Redeemable noncontrolling interests

 

 

20,889

 

 

 

104,381

 

 

 

 

 

 

Equity:

 

 

 

 

American Campus Communities, Inc. and Subsidiaries stockholders equity:

 

 

 

 

Common stock

 

 

1,375

 

 

 

1,373

 

Additional paid in capital

 

 

4,472,489

 

 

 

4,458,456

 

Common stock held in rabbi trust

 

 

(3,951

)

 

 

(3,486

)

Accumulated earnings and dividends

 

 

(1,292,364

)

 

 

(1,144,721

)

Accumulated other comprehensive loss

 

 

(24,614

)

 

 

(16,946

)

Total American Campus Communities, Inc. and Subsidiaries stockholders equity

 

 

3,152,935

 

 

 

3,294,676

 

Noncontrolling interests “ partially owned properties

 

 

42,700

 

 

 

43,998

 

Total equity

 

 

3,195,635

 

 

 

3,338,674

 

 

 

 

 

 

Total liabilities and equity

 

$

7,581,524

 

 

$

7,559,754

 

  1. For purposes of calculating net asset value (“NAV”) at September 30, 2020, the company excludes other assets of approximately $3.1 million related to net deferred financing costs on its revolving credit facility and the net value of in-place leases, as well as operating lease right of use assets disclosed above.
  2. For purposes of calculating NAV at September 30, 2020, the company excludes other liabilities of approximately $70.6 million related to deferred revenue and fee income, as well as operating lease liabilities disclosed above.

Table 2

American Campus Communities, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income

(dollars in thousands, except share and per share data)

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2020

 

2019

 

2020

 

2019

 

 

(unaudited)

 

(unaudited)

Revenues

 

 

 

 

 

 

 

 

Owned properties 1

 

$

191,710

 

 

$

211,082

 

 

$

600,987

 

 

$

638,657

 

On-campus participating properties

 

5,386

 

 

6,944

 

 

20,196

 

 

24,788

 

Third-party development services

 

2,186

 

 

5,611

 

 

5,531

 

 

12,389

 

Third-party management services

 

2,771

 

 

3,342

 

 

9,268

 

 

9,118

 

Resident services

 

622

 

 

726

 

 

1,644

 

 

2,255

 

Total revenues

 

202,675

 

 

227,705

 

 

637,626

 

 

687,207

 

 

 

 

 

 

 

 

 

 

Operating expenses (income)

 

 

 

 

 

 

 

 

Owned properties

 

106,518

 

 

111,836

 

 

284,741

 

 

294,768

 

On-campus participating properties

 

3,783

 

 

3,822

 

 

10,357

 

 

11,585

 

Third-party development and management services

 

5,061

 

 

5,430

 

 

16,245

 

 

14,129

 

General and administrative 2

 

8,638

 

 

7,165

 

 

28,563

 

 

22,595

 

Depreciation and amortization

 

67,369

 

 

68,930

 

 

199,979

 

 

206,500

 

Ground/facility leases

 

3,071

 

 

3,215

 

 

10,033

 

 

10,000

 

(Gain) loss from disposition of real estate

 

 

 

 

 

(48,525)

 

 

282

 

Provision for impairment

 

 

 

 

 

 

 

3,201

 

Total operating expenses

 

194,440

 

 

200,398

 

 

501,393

 

 

563,060

 

 

 

 

 

 

 

 

 

 

Operating income

 

8,235

 

 

27,307

 

 

136,233

 

 

124,147

 

 

 

 

 

 

 

 

 

 

Nonoperating income (expenses)

 

 

 

 

 

 

 

 

Interest income

 

855

 

 

960

 

 

2,576

 

 

2,855

 

Interest expense

 

(29,056)

 

 

(28,303)

 

 

(84,007)

 

 

(82,432)

 

Amortization of deferred financing costs

 

(1,349)

 

 

(1,315)

 

 

(3,891)

 

 

(3,665)

 

Gain (loss) from extinguishment of debt 3

 

 

 

20,992

 

 

(4,827)

 

 

20,992

 

Other nonoperating income

 

264

 

 

 

 

264

 

 

 

Total nonoperating expenses

 

(29,286)

 

 

(7,666)

 

 

(89,885)

 

 

(62,250)

 

 

 

 

 

 

 

 

 

 

(Loss) income before income taxes

 

(21,051)

 

 

19,641

 

 

46,348

 

 

61,897

 

Income tax provision

 

(373)

 

 

(305)

 

 

(1,133)

 

 

(983)

 

Net (loss) income

 

(21,424)

 

 

19,336

 

 

45,215

 

 

60,914

 

Net loss (income) attributable to noncontrolling interests

 

1,909

 

 

887

 

 

2,781

 

 

(665)

 

Net (loss) income attributable to ACC, Inc. and Subsidiaries common stockholders

 

$

(19,515)

 

 

$

20,223

 

 

$

47,996

 

 

$

60,249

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

Change in fair value of interest rate swaps and other

 

1,851

 

 

(145)

 

 

(7,668)

 

 

(14,532)

 

Comprehensive (loss) income

 

$

(17,664)

 

 

$

20,078

 

 

$

40,328

 

 

$

45,717

 

 

 

 

 

 

 

 

 

 

Net (loss) income per share attributable to ACC, Inc. and Subsidiaries common shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.15)

 

 

$

0.14

 

 

$

0.34

 

 

$

0.43

 

 

 

 

 

 

 

 

 

 

Diluted

 

$

(0.15)

 

 

$

0.14

 

 

$

0.33

 

 

$

0.43

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

137,632,091

 

 

137,403,842

 

 

137,574,485

 

 

137,259,130

 

 

 

 

 

 

 

 

 

 

Diluted

 

137,632,091

 

 

138,375,527

 

 

138,678,713

 

 

138,257,906

 

 
  1. Refer to Table 4 for more detail regarding the impact of the COVID-19 pandemic on revenues for our same store portfolio.
  2. General and administrative expenses for the nine months ended September 30, 2020 include $1.1 million related to the settlement of a litigation matter.
  3. The three and nine months ended September 30, 2019 amounts represent the gain on the extinguishment of debt associated with a property that was transferred to the lender in settlement of the property’s mortgage loan in July 2019. The nine months ended September 30, 2020 amount represents the loss associated with the January 2020 redemption of the Company’s $400 million 3.35% Senior Notes originally scheduled to mature in October 2020.

Table 3

American Campus Communities, Inc. and Subsidiaries

Consolidated Statements of Funds from Operations (FFO)

(unaudited, dollars in thousands, except share and per share data)

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2020

 

2019

 

2020

 

2019

Net (loss) income attributable to ACC, Inc. and Subsidiaries common stockholders

 

$

(19,515)

 

 

$

20,223

 

 

$

47,996

 

 

$

60,249

 

Noncontrolling interests’ share of net (loss) income

 

(1,909)

 

 

(887)

 

 

(2,781)

 

 

665

 

 

 

 

 

 

 

 

 

 

Joint Venture (“JV”) partners’ share of FFO

 

 

 

 

 

 

 

 

JV partners’ share of net loss (income)

 

1,857

 

 

970

 

 

2,987

 

 

(368)

 

JV partners’ share of depreciation and amortization

 

(1,944)

 

 

(2,145)

 

 

(5,836)

 

 

(6,488)

 

 

 

(87)

 

 

(1,175)

 

 

(2,849)

 

 

(6,856)

 

 

 

 

 

 

 

 

 

 

(Gain) loss from disposition of real estate

 

 

 

 

 

(48,525)

 

 

282

 

Elimination of provision for real estate impairment

 

 

 

 

 

 

 

3,201

 

Total depreciation and amortization

 

67,369

 

 

68,930

 

 

199,979

 

 

206,500

 

Corporate depreciation 1

 

(858)

 

 

(1,135)

 

 

(2,632)

 

 

(3,528)

 

FFO attributable to common stockholders and OP unitholders

 

45,000

 

 

85,956

 

 

191,188

 

 

260,513

 

 

 

 

 

 

 

 

 

 

Elimination of operations of on-campus participating properties (“OCPPs”)

 

 

 

 

 

 

 

 

Net loss (income) from OCPPs

 

1,294

 

 

424

 

 

(206)

 

 

(2,138)

 

Amortization of investment in OCPPs

 

(1,883)

 

 

(2,289)

 

 

(5,965)

 

 

(6,334)

 

 

 

44,411

 

 

84,091

 

 

185,017

 

 

252,041

 

Modifications to reflect operational performance of OCPPs

 

 

 

 

 

 

 

 

Our share of net cashflow 2

 

518

 

 

353

 

 

1,632

 

 

2,063

 

Management fees and other

 

319

 

 

369

 

 

1,146

 

 

1,597

 

Contribution from OCPPs

 

837

 

 

722

 

 

2,778

 

 

3,660

 

 

 

 

 

 

 

 

 

 

Transaction costs 3

 

 

 

147

 

 

 

 

147

 

Elimination of (gain) loss from extinguishment of debt 4

 

 

 

(20,992)

 

 

4,827

 

 

(20,992)

 

Elimination of litigation settlement expense 5

 

 

 

 

 

1,100

 

 

 

Elimination of FFO from property in receivership 6

 

 

 

104

 

 

 

 

1,912

 

Funds from operations-modified (FFOM) attributable to common stockholders and OP unitholders

 

$

45,248

 

 

$

64,072

 

 

$

193,722

 

 

$

236,768

 

 

 

 

 

 

 

 

 

 

FFO per share – diluted

 

$

0.32

 

 

$

0.62

 

 

$

1.37

 

 

$

1.88

 

 

 

 

 

 

 

 

 

 

FFOM per share – diluted

 

$

0.32

 

 

$

0.46

 

 

$

1.39

 

 

$

1.71

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding – diluted

 

139,235,064

 

 

138,879,244

 

 

139,182,430

 

 

138,854,970

 

 

 

 

 

 

 

 

 

 

  1. Represents depreciation on corporate assets not added back for purposes of calculating FFO.
  2. 50% of the properties net cash available for distribution after payment of operating expenses, debt service (including repayment of principal) and capital expenditures which is included in ground/facility leases expense in the consolidated statements of comprehensive income (refer to Table 2). The decrease as compared to prior year is a result of the universities’ decisions to provide rent abatements to tenants during the latter part of the 2019/2020 academic year and the lower occupancy achieved for the 2020/2021 academic year as a result of COVID-19.
  3. Represents transaction costs incurred in connection with the closing of one presale transaction in August 2019.
  4. The three and nine months ended September 30, 2019 amounts represent the gain on the extinguishment of debt associated with a property that was transferred to the lender in settlement of the property’s mortgage loan in July 2019. The nine months ended September 30, 2020 amount represents the loss associated with the January 2020 redemption of the Company’s $400 million 3.35% Senior Notes originally scheduled to mature in October 2020.
  5. Represents the settlement of a litigation matter that is included in general and administrative expenses in the accompanying consolidated statements of comprehensive income.
  6. Represents FFO for an owned property that was transferred to the lender in July 2019 in settlement of the property’s mortgage loan.

Table 4

American Campus Communities, Inc. and Subsidiaries

Owned Properties Results of Operations1

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2020

 

2019

 

$ Change

 

% Change

 

2020

 

2019

 

$ Change

 

% Change

Owned properties revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Same store properties 2

$

182,728

 

 

$

201,564

 

 

$

(18,836)

 

 

(9.3

%)

 

$

571,861

 

 

$

617,195

 

 

$

(45,334)

 

 

(7.3

%)

New properties

9,604

 

 

4,667

 

 

4,937

 

 

 

 

28,069

 

 

5,110

 

 

22,959

 

 

 

Sold and held for sale properties 3

 

 

5,577

 

 

(5,577)

 

 

 

 

2,701

 

 

18,607

 

 

(15,906)

 

 

 

Total revenues 4

$

192,332

 

 

$

211,808

 

 

$

(19,476)

 

 

(9.2

%)

 

$

602,631

 

 

$

640,912

 

 

$

(38,281)

 

 

(6.0

%)

Owned properties operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Same store properties

$

100,950

 

 

$

106,526

 

 

$

(5,576)

 

 

(5.2

%)

 

$

271,175

 

 

$

281,689

 

 

$

(10,514)

 

 

(3.7

%)

New properties

5,386

 

 

2,608

 

 

2,778

 

 

 

 

12,266

 

 

3,792

 

 

8,474

 

 

 

Other 5

182

 

 

75

 

 

107

 

 

 

 

283

 

 

210

 

 

73

 

 

 

Sold and held for sale properties 3 6

 

 

2,627

 

 

(2,627)

 

 

 

 

1,017

 

 

9,077

 

 

(8,060)

 

 

 

Total operating expenses

$

106,518

 

 

$

111,836

 

 

$

(5,318)

 

 

(4.8

%)

 

$

284,741

 

 

$

294,768

 

 

$

(10,027)

 

 

(3.4

%)

Owned properties net operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Same store properties

$

81,778

 

 

$

95,038

 

 

$

(13,260)

 

 

(14.0

%)

 

$

300,686

 

 

$

335,506

 

 

$

(34,820)

 

 

(10.4

%)

New properties

4,218

 

 

2,059

 

 

2,159

 

 

 

 

15,803

 

 

1,318

 

 

14,485

 

 

 

Other 5

(182)

 

 

(75)

 

 

(107)

 

 

 

 

(283)

 

 

(210)

 

 

(73)

 

 

 

Sold and held for sale properties 3 6

 

 

2,950

 

 

(2,950)

 

 

 

 

1,684

 

 

9,530

 

 

(7,846)

 

 

 

Total net operating income

$

85,814

 

 

$

99,972

 

 

$

(14,158)

 

 

(14.2

%)

 

$

317,890

 

 

$

346,144

 

 

$

(28,254)

 

 

(8.2

%)

1.

The same store grouping above represents properties owned and operating for both of the entire years ended December 31, 2020 and 2019, which are not conducting or planning to conduct substantial development, redevelopment, or repositioning activities, and are not classified as held for sale as of September 30, 2020. Includes the full operating results of properties owned through joint ventures in which the company has a controlling financial interest and which are consolidated for financial reporting purposes.

2.

The most significant impacts to our third quarter same store property revenues resulting from COVID-19 are as follows:

 

“ Approximately $2.1 million and $17.2 million in rent refunds and/or early lease terminations was provided to tenants at our on-campus ACE properties and certain off-campus residence halls during the three and nine months ended September 30, 2020, respectively;

 

“ Approximately $4.5 million and $12.7 million in rent was forgiven during the three and nine months ended September 30, 2020, respectively, as part of our Resident Hardship Program for residents and families at our same store properties who experienced financial hardship due to COVID-19;

 

“ Approximately $8.4 million and $15.8 million of the decrease during the three and nine months ended September 30, 2020, respectively, as compared to the prior year was a result of lost summer camp and conference revenue, waived fees, an increase in the provision for uncollectible accounts resulting from rent delinquencies, and other items;

 

“ Approximately $8.6 million decrease in revenues as compared to the amount initially anticipated prior to the impact of COVID-19 for the three months and nine months ended September 30,2020, due to the decrease in occupancy from the Academic Year 2020-2021 lease up.

3.

Includes properties sold in 2019 and 2020 and one property that was transferred to the lender in July 2019 in settlement of the property’s mortgage loan.

4.

Includes revenues that are reflected as Resident Services Revenue on the accompanying consolidated statements of comprehensive income.

5.

Includes professional fees related to the operation of consolidated joint ventures that are included in owned properties operating expenses in the consolidated statements of comprehensive income (refer to Table 2).

6.

Does not include the allocation of payroll and other administrative costs related to corporate management and oversight.

 

American Campus Communities, Inc., Austin

Ryan Dennison, 512-732-1000

News

Infarm Drives Expansion of Urban Farming in Japan

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Infarm's rapid growth in Asia continues with new agreement to offer freshly-harvested produce to Summit supermarkets in the Tokyo metropolitan area

Following partnerships announced with East Japan Railway Company (JR East), food retailer, Kinokuniya and distributor Muroo Co. Ltd, Infarm produce to appear at partner retail locations starting in January 2021.

TOKYO, Dec. 2, 2020 /PRNewswire/ — Infarm, the world's fastest growing urban farming network, announced today a partnership with Summit Inc., a wholly owned subsidiary of  Sumitomo Corporation Group to offer fresh produce grown and harvested at the company's Summit Store (supermarket) , one of Tokyo's leading supermarket chains.  With annual revenue (as of March 2020) of USD 3B, Summit Inc. has 120 retail locations across the Tokyo metropolitan area. The first farms will be installed by Infarm at Summit's Gotanno location, in conjunction with the store's rebuilding in December 2020, and produce will be available for purchase at Summit Gotanno store at the end of January 2021.

This announcement marks Infarm's second major partnership in Japan. The company first expanded into the market through partnerships with East Japan Railway Company (JR East), food retailer, Kinokuniya, and national food distributor, Muroo Co. Ltd,  announced in February 2020. Infarm produce will first be available to Kinokuniya consumers on January 19, 2021 at the Aoyama International flagship store and on January 23, 2021 at the Nishi-Ogikubo store located at the JR Nishiogikubo station. Additional Kinokuniya stores are expected to follow through 2021.

“We are very pleased to partner with Infarm. Since last year, we have been communicating with Erez and Mr. Hiraishi, and our business vision and chemistry matched with each other, which led to this partnership. We look forward to serving our customers with Infarm vegetables at our Gotanno store, an important flagship store for Summit,” commented Junpei Yamamoto, Executive Officer of Summit Inc.

 “Japan's busy urban centers present a unique opportunity to improve the way millions of people get access to fresh, sustainable produce.  We're proud to partner with Summit as we continue to grow in this dynamic market. Summit's commitment to offering high-quality food to customers at all price points, while reducing waste and making shopping enjoyable, aligns perfectly with Infarm's vision to make fresh nutritious food available to everyone,” commented Erez Galonska, co-founder and CEO of Infarm.

 According to some estimates, Japan relies on imports for about 60% of its food, contributing to a tremendous amount of cumulative food miles, while annual food waste has been estimated to have reached more than 6.12 million tons[1].  In addition, Japan has one of the highest rates of pesticide use in the world according to estimates offered by the FAO.[2]  By partnering closely with Japanese clients, Infarm hopes to make a positive contribution to retailer efforts to reduce the negative environmental impact of produce with fresh food that is grown as closely as possible to the point of consumption.

 “We continue to experience positive momentum in Japan and believe our approach to farming will be attractive to Tokyo consumers. Our clients can be sure that our harvesters have taken care of each plant as if it were in their very own garden, full of flavour and pesticide-free. We're convinced that Infarm shoppers will taste and notice the difference,” said Ikuo C. Hiraishi, Managing Director, Infarm Japan.

Infarm has developed the world's most advanced, easily scalable and rapidly deployable modular farms that can transform any retail space and fulfil any market demand.  Each in-store farm offers a controlled environment with growing recipes that bring out the natural flavour and properties of each plant.

The individual farms are connected and remotely controlled from a central farming platform that gathers up-to-the-minute information about each plant's growth and learns, adjusts and improves itself continuously, so each plant grows better than the one before.

Infarm staff regularly visit the farms to harvest mature plants, place them at the point of sale, and plant new seedlings for the next cycle. Consumers have access to the plants at their freshest points, still alive with their roots, free of pesticides and full of nutrients and flavour.

“Flavour for me is a primary concern – as I want to offer each of my customers a unique experience that both surprises and delights the palate. Being able to use herbs and lettuces freshly harvested from Infarm gives me a personal garden to be creative and make my dishes sparkle – it's an experience that can really transform your cooking as a chef or for your family at home,” said Tim Raue, Infarm client and Michelin-starred chef of Restaurant Tim Raue in Berlin.

Founded in 2013, Infarm is one of the world's largest urban farming platforms harvesting and distributing more than 500,000 plants each month across its network. Infarm currently operates across Canada, Denmark, France, Germany, Japan, Luxembourg, the Netherlands, the United Kingdom, the United States and Switzerland where it has deployed more than 1,200 farms in stores and distribution centres. Since 2013 the company has raised more than 300 million USD.

About Infarm

Infarm was founded in Berlin in 2013 by Osnat Michaeli and the brothers Erez and Guy Galonska. Passionate to become self-sufficient and eat better, they were growing their own food, enjoying all the flavour and nutrients, without the chemical pesticides and transport kilometres. With the aim to share the goodness of own-grown produce with everyone, they developed a smart modular farming system, that allows distribution of farms throughout the urban environment, growing fresh produce in any available space and fulfilling any market demand. Today, with cutting edge R&D, patented technologies, and a leading multi-disciplinary team, Infarm is growing a worldwide farming network helping cities become self-sufficient in their food production while significantly improving the safety, quality, and environmental footprint of our food.

With a multinational team of 700 people globally, Infarm has partnered with more than 30 major food retailers including Albert Heijn, Aldi Süd, Amazon Fresh, Auchan, Casino, E.Leclerc, Edeka, Empire Company Ltd (Safeway, Sobeys, ThriftyFoods), Farmdrop, Intermarché, Irma, Kaufland, Kinokuniya, Kroger, Marks & Spencer, Metro, Migros, Selfridges, Selgros, Summit and Whole Foods Market in Canada, Denmark, France, Germany, Japan, Luxembourg, the Netherlands, the United Kingdom, the United States and Switzerland,  deployed more than 1200 farms in stores and distribution centres, saved more than 40,000,000 litres of water and 50,000 square meters of land, while harvesting 500,000+ plants monthly and growing.

About Summit

Summit Inc. was established in 1963 in Tokyo, 100% owned by Sumitomo Corporation. Summit has spread across the Tokyo metropolitan area with 120 supermarkets. The annual revenue as of March 2020 is USD 3B.

[1] https://www.gov-online.go.jp/eng/publicity/book/hlj/html/202005/202005_09_en.html

[2] http://www.fao.org/faostat/en/#data/EP/visualize

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Ping An Research: ESG Investing Showing Dramatic Growth in China in 2020, Outperforming Market Average

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HONG KONG and SHANGHAI, Dec. 2, 2020 /PRNewswire/ — Environmental, Social and Corporate Governance (ESG) investing is enjoying a boom in China, according to the latest report from the Ping An Digital Research Center (PADERC), part of Ping An Insurance (Group) Company of China, Ltd. (hereafter “Ping An” or the “Group”, HKEX: 02318; SSE: 601318). ESG-themed funds are growing in number and issuance size and outperforming the China market average.

The report, ESG Investing in China, says capital flow into ESG-themed exchange-trade fund (ETF) investment in China increased 464% between 2018 and 2019. China has benefitted from a global trend of inflows into ESG-themed ETFs, which hit a record high in 2019 of US$20.5 billion, four times the volume of 2018 of US$4.9 billion.

The report also found that ESG funds are outperforming the China market average. For ESG equity funds, since 2020, the annualized return for pure ESG funds was 47.07%, environmental-based funds 70.02%, pan-ESG concept funds 56.4% and corporate governance funds 47.91%. The annualized return rate of all ESG equity funds has exceeded the average of 42.22% for the overall equity fund market.

The opening of China's capital market is attracting more and more international capital seeking ESG investments, which is raising awareness and increasing interest in ESG investment principles in China.

“With the rapid growth in ESG-linked investments, we are seeing an increase in the quantity and quality of ESG disclosures from Chinese companies. Domestically, there is also an increasing level of stringent regulatory requirements for ESG disclosures and broader guidance on governmental initiatives aiming to build a 'green financial system',” said Chenxi Yu, Deputy Director of PADERC.

Our research on Chinese ESG investment market reveals the following trends:

  • Greater attention on ESG within Chinese capital markets: The number of ESG thematic reports increased from one in 2017 to 53 this year. With the use of Natural Language Processing (NLP) technology, Ping An analyzed 103 ESG thematic research reports issued from 2017 onwards and identified that the content has shifted from conceptual descriptions to specific investment products and analyses of their performance.
  • “Pure ESG” indices in China doubled in 2020: Out of the 19 “pure ESG” indices in China's market, four were released before 2019, six in 2019 and nine in 2020. The indices employ an index strategy in which a company's ESG score is explicitly used as a screening criterion. As more of these indices are released, they offer increasing diversity in investment strategies.
  • Size of ESG funds in China has grown significantly since 2019: The total issuance size of ESG-themed funds increased by 36% compared with the end of 2019, doubling from the rate in the previous year.

The report provided insights and suggestions for the future development of ESG investment in China, including:

  • Improve data and rating coverage within the domestic stock markets to support the development and enrichment of ESG-themed investment products.
  • Use alternative data and technology, such as NLP, to help investors distinguish between truly ESG-compliant companies from “greenwashing” ones, whose disclosures do not reflect their actual performance.
  • Establish ESG ratings and data for bonds and their issuers to accelerate the integration of ESG in fixed income investment.
  • Develop more diversified ESG products, such as passive funds, quantitative funds and investment products for the primary market, to provide more options for investors.
  • Innovate and develop financial products focused on climate risk mitigation and the transition to a low-carbon economy, as China increases its emphasis on climate change transition measures.

Download the full report: Press here

About Ping An Group

Ping An Insurance (Group) Company of China, Ltd. (“Ping An“) is a world-leading technology-powered retail financial services group. With over 214 million retail customers and nearly 579 million Internet users, Ping An is one of the largest financial services companies in the world.

Ping An has two over-arching strategies, “pan financial assets” and “pan health care”, which focus on the provision of financial and health care services through our integrated financial services platform and ecosystems. Our “finance + technology” and “finance + ecosystem” strategies aim to provide customers and internet users with innovative and simple products and services using technology. As China's first joint stock insurance company, Ping An is committed to upholding the highest standards of corporate reporting and corporate governance. The Group is listed on the stock exchanges in Hong Kong and Shanghai.

In 2020, Ping An ranked 7th in the Forbes Global 2000 list and ranked 21st in the Fortune Global 500 list. Ping An also ranked 38th in the 2020 WPP Kantar Millward Brown BrandZTM Top 100 Most Valuable Global Brands list. For more information, please visit group.pingan.com.

About Ping An Digital Economic Research Center

Ping An Digital Economic Research Center utilizes more than 50 TB high frequency data points, more than 30 years of historical data and more than 1.5 billion data points to drive research on the “AI + Macro Forecast” and provide insights and methods towards precise macroeconomic trends.

 

Cision View original content:http://www.prnewswire.com/news-releases/ping-an-research-esg-investing-showing-dramatic-growth-in-china-in-2020-outperforming-market-average-301183308.html

SOURCE Ping An Insurance (Group) Company of China, Ltd.

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Brightpearl selected to power Shopify's lineup of retail hardware

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BRISTOL, England and AUSTIN, Texas, Dec. 2, 2020 /PRNewswire/ — Brightpearl is today announcing it will power the growth of Shopify's collection of retail hardware.

Shopify, a leading global commerce company who provides trusted tools that help merchants of any size start, grow, market, and manage a retail business, recently launched its new point-of-sale hardware collection which includes a redesigned Tap & Chip Reader, as well as the Dock and Retail Stand, to offer a more comprehensive solution for brick-and-mortar retailers.

Shopify is now employing Brightpearl's retailer-first digital operations platform to automate and support the fulfillment and distribution of new hardware to merchants who are starting or expanding to brick-and-mortar retail. This partnership will enable businesses to seamlessly buy Shopify's point-of-sale hardware products online.

Brightpearl provides digital operations solutions for the world's biggest retail brands including financial management, inventory and sales order management, fulfillment, warehouse and logistics. The company has seen the number of online firms using its platform grow by 80% since spring 2020, with Shopify Hardware being the latest addition.

With the platform deployed in less than 60 days – rapid by ERP metrics – Shopify will benefit from a truly unified platform that can automate the flow of information about customers, order management, financials and inventory. This will allow the ecommerce platform to improve accuracy and efficiency and make quicker business decisions.

Brightpearl's digital operations platform will enable Shopify to easily keep up with the growing demand for multichannel selling across its online hardware stores. Crucially, Brightpearl's system allows Shopify to employ a high degree of automation for fulfilment which will better position the brand to serve a quicker, and more efficient online shopping experience to its customers.

Commenting on the deal, Stuart Pick, VP of Global Alliances for Brightpearl, said: “We're thrilled to have been chosen by Shopify to power their own stores, and to work with a team which shares our passion for streamlining ecommerce.

“The combination of Shopify and Brightpearl is one that an increasing number of merchants across the world are using to power their business, streamline operations and deliver smoother shopping experiences. For Shopify to select Brightpearl to support its own Plus website store is a huge indication of the trust they have in our platform.”

Find out more information about Brightpearl's complete operations platform for brands, retailers and wholesalers here.

Learn more about the new Shopify's point-of-sale hardware here.

About Brightpearl

Brightpearl is a retail operations platform for retailers and wholesalers. Brightpearl's complete back-office solution includes financial management, inventory and sales order management, purchasing and supplier management, CRM, fulfillment, warehouse and logistics. In addition, the solution has high-performing connectors to the major ecommerce platforms, including Magento, BigCommerce and Shopify. Over 1,200 businesses in 26 countries use our platform. We manage over 10m transactions and $3bn of business a year.

Brightpearl is designed for retailers and wholesalers to manage the heart of their business easily from one single system. Brightpearl's US headquarters is in Austin with a global headquarters in Bristol, UK. Connect with us on Twitter (@BrightpearlHQ), LinkedIn (linkedin.com/company/Brightpearl), and Facebook (facebook.com/brightpearl).

Media Contacts:
Mark Hook
Brightpearl
[email protected] 
+44 (0)7915 699 713

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