AUSTIN, Texas--(BUSINESS WIRE)--American Campus Communities, Inc. (NYSE:ACC), the largest owner, manager and developer of high-quality student housing properties in the U.S., today released an interim leasing update for the 2016-2017 academic year in connection with REITWeek 2016: NAREIT’s Investor Forum®, which will begin on June 7, 2016. Additionally, the company announced that on May 31, 2016, Moody’s Investors Service (“Moody’s”) upgraded its corporate credit rating on the company from Baa3 to Baa2.
Academic Year 2016-2017 Preleasing Update
As of June 3, 2016, the company’s same store wholly-owned portfolio was 92.0 percent applied for and 85.8 percent leased compared to 92.2 percent applied for and 85.6 percent leased for the same date prior year, with a 3.0 percent current projected rental rate increase over in-place rents. The company’s new wholly-owned properties are 75.4 percent leased bringing the total wholly-owned portfolio to 85.4 percent leased. When excluding Merwick Stanworth Phase II, a community which will serve faculty and staff members of Princeton University and is expected to stabilize in a manner consistent with a multi-family property during the first academic session, consistent with the first phase Merwick Stanworth development, the company’s 2016 new development deliveries are preleased to an average of 84.7 percent.
“Leasing for the 2016-2017 academic year continues to progress very well,” said Bill Bayless, American Campus CEO. “We are particularly pleased with the leasing strength exhibited by our core portfolio which excludes the group of non-core drive assets targeted for disposition. This portfolio of core assets is preleased to 87.9 percent, 140 basis points ahead of last year, positioning the company well for strong internal value creation as we move into 2017.”
Ratings Agency Action
On May 31, 2016, Moody’s upgraded its corporate credit rating on the company from Baa3 to Baa2 with a stable outlook. In its report, Moody’s noted that “American Campus has experienced consistently strong operating performance, including through the most recent credit and real estate market downturn, which is reflected in the company's stable occupancy in the mid-90% range and solid same-store year-over-year NOI growth.” Further, the report states that “The ratings upgrade reflects ACC's balance sheet improvements which include moderate leverage and a substantial increase in unencumbered assets.”
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 March 31, 2016, American Campus Communities owned 163 student housing properties containing approximately 100,600 beds. Including its owned and third-party managed properties, ACC's total managed portfolio consisted of 203 properties with approximately 131,100 beds. Visit www.americancampus.com.
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.