Research Desk Line-up: Equity Residential Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 1, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on American Campus Communities, Inc. (NYSE: ACC) ("ACC"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=ACC, following the Company's release of its financial results on July 24, 2017, for its second quarter fiscal quarter. The real estate investment trust re-affirmed its guidance for the fiscal year. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the REIT - Residential industry. Pro-TD has currently selected Equity Residential (NYSE: EQR) for due-diligence and potential coverage as the Company reported on July 25, 2017, its financial results for Q2 2017 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Equity Residential when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on ACC; also brushing on EQR. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

ACC's revenues for Q2 2017 totaled $179.0 million compared to $186.0 million in Q2 2016 while operating income for the reported quarter was $12.6 million versus $39.1 million in the prior year's corresponding quarter. The Company attributed the drop in revenues and operating income to the sale of 20 non-core properties since Q1 2016, and a non-cash provision for real estate impairment recorded during the reported quarter related to a wholly-owned property in lieu of settlement of the property's $27.4 million mortgage loan. ACC's revenue came in ahead of analysts' expectations of $171.09 million.

During Q2 2017, ACC's net loss totaled $2.8 million, or $0.02 per fully diluted share, compared with net income of $18.4 million, or $0.14 per fully diluted share, for Q2 2016.

ACC's Funds from Operations (FFO) for Q2 2017 totaled $68.5 million, or $0.50 per fully diluted share, compared to $71.7 million, or $0.54 per fully diluted share, for Q2 2016. The Company's funds from operations-modified (FFOM) were $72.5 million, or $0.53 per fully diluted share, for the reported quarter compared to $72.2 million, or $0.54 per fully diluted share, for the prior year's same quarter. ACC's FFOM numbers fell short of Wall Street's expectations of $0.54 per share.

For Q2 2017, NOI for same store wholly-owned properties was $88.6 million, reflecting an increase of 2.2% over $86.6 million in Q2 2016. In the reported quarter same store wholly-owned property revenues increased by 2.7% on a y-o-y basis due to an increase in average rental rates for the 2016-2017 academic year and growth in other income. NOI for the total wholly-owned portfolio was $94.7 million for Q2 2017 versus $97.7 million in Q2 2016.

Portfolio Updates

Developments

ACC is expecting to see progress on the construction of its 19 owned development and presale development projects with projected deliveries in 2017, 2018, and 2019. The Company stated that the developments total approximately $1.2 billion, and are all core Class A assets located on or pedestrian to campus in their respective markets, averaging 0.1 miles to campus, and are expected to achieve a stabilized development yield in the range of 6.25% - 7.0%.

Off-Campus Owned

During Q2 2017, ACC commenced construction on 191 College, a $59.3 million, 495-bed development serving students attending Auburn University. The development is scheduled for delivery in July 2019.

During Q2 2017, the Company executed a pre development agreement for an ACE transaction at the University of Arizona. The proposed $97.0 million living-learning honors college is expected to commence construction in late 2017 for a fall 2019 delivery and is currently anticipated to include modern student accommodations for approximately 1,042 students.

Acquisitions

During Q2 2017, ACC entered the Seattle market with the acquisition of TWELVE at U District, a 384-bed community located pedestrian to the University of Washington campus. After the investment of $3.5 million of upfront capital improvements, the acquisition targets a year-one cap rate of 4.5% nominal and 4.4% economic. Over the next two leasing cycles, the Company plans to convert the community to by-the-bed leasing with the lease terms coinciding with the University's academic calendar.

Dispositions

In April 2017, ACC completed the sale of The Province, a 657-bed non-core property serving students attending Wright State University. The property is located more than one-mile from core campus and was sold for $25.0 million which represents an economic cap rate of 6.1% based on in-place rental revenue, escalated trailing-12 operating expenses, and historical average capital expenditures.

Capital Markets

In June 2017, ACC entered into a $200 million senior unsecured term loan, which matures in June 2022. The loan contains an accordion feature that allows the Company to expand the facility by up to an additional $100 million, subject to the satisfaction of certain conditions.

Share Offering Program

During Q2 2017, ACC sold 2.6 million shares of common stock under the At-The-Market (ATM) program at a weighted average price of $47.69 per share for net proceeds of approximately $124.7 million. As on the date of the earnings release, the Company stated that total gross proceeds of $267.0 million have been raised under this program in 2016 and 2017 leaving approximately $233 million of capacity under the current program.

2017 Outlook

ACC re-affirmed its previously stated guidance range for the fiscal year 2017, anticipating that FFO will be in the range of $2.34 to $2.44 per fully diluted share and FFOM will be in the range of $2.32 to $2.42 per fully diluted share.

Stock Performance

At the closing bell, on Monday, July 31, 2017, American Campus Communities' stock was marginally up 0.25%, ending the trading session at $47.94. A total volume of 665.54 thousand shares have exchanged hands. The Company's stock price advanced 0.46% in the past one month and 0.95% in the last three months. The stock is trading at a PE ratio of 73.64 and has a dividend yield of 3.67%. The stock currently has a market cap of $6.45 billion.

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