American Campus Communities, Inc. (NYSE:ACC), the largest owner, manager and developer of high-quality student housing properties in the U.S., today released leasing information for the 2015-2016 academic year on Form 8-K, provided a portfolio update, and provided information on the company’s strategies regarding capital allocation and balance sheet management in a presentation available in the Investor Relations section of the company’s website at www.americancampus.com.

Academic Year 2015-2016 Leasing Update

As of September 28, 2015, the Q4 2015 same store properties are 97.7 percent leased with a 2.9 percent final projected rental rate increase compared to 97.7 percent as of September 30, 2014. The total new store properties are leased to 89.9 percent. The combined total wholly-owned portfolio is 96.9 percent leased as of September 28, 2015.

Portfolio Update

At the end of July, the company completed the acquisition of Stadium Centre which included the presale of an additional development phase targeting delivery in Fall 2016. Upon completion the property will contain 970 beds located pedestrian to Florida State University in Tallahassee. The transaction consists of a 710-bed existing asset and a to-be-developed phase of 260-beds, which will function as one property.

“Stadium Centre represents the last of the acquisition properties which the company placed under contract in early 2015. Given the current capital market environment, we do not anticipate any further acquisitions as part of our near term growth strategy,” said Bill Bayless, American Campus CEO. “The inclusion of the to-be-developed phase allowed us to acquire the Stadium Centre assets, on a standalone asset underwrite basis, at a blended cap rate of 6.2 percent nominal and 6.0 percent economic. With our eight existing properties containing over 2,600 beds in the Florida State market, we are optimistic that multiple asset market efficiencies may yield as much as 25 to 50 basis points more than the going-in cap rates imply, approaching returns we achieve on our developments.”

Balance Sheet Management and Capital Allocation Strategy

As previously announced, on September 15, 2015, the company priced a $400 million offering of senior unsecured notes under its existing shelf registration. These five-year notes were issued at 99.811 percent of par value with a coupon of 3.35 percent and are fully and unconditionally guaranteed by the Company.

“With the completion of this offering which, will be used to term out the full balance on our revolving credit facility and near term maturities of mortgage loans, we believe it is an appropriate time to update the market on our capital allocation strategy and funding plans,” stated Bill Bayless. “As always, we strive to allocate our capital to investment opportunities that generate an appropriate risk adjusted return and are accretive to both net asset value and earnings per share. Due to the existing capital market environment, we do not currently believe acquisitions provide an attractive investment. As such, at this time, we are stepping away from the acquisition market and rather are focusing on executing on our high yielding development pipeline. We intend to fund the developments with a mix of available operating cash flow and continuation of our capital recycling program. With a robust private market for student housing properties experiencing valuations at historic highs, disposition of non-core assets along with the potential disposition or joint venture of core assets currently represent our most attractive source of external capital.”

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements under the federal securities law. These statements are based on current expectations, estimates and projections about the industry and markets in which American Campus operates management's beliefs, and assumptions made by management. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict.

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 June 30, 2015, American Campus Communities owned 159 student housing properties containing approximately 96,400 beds. Including its owned and third-party managed properties, American Campus Communities’ total managed portfolio consisted of 198 properties with approximately 126,800 beds.