Tuesday, American Campus Communities Inc. (ACC), an operator of student housing communities, reported a wider loss for the second quarter from a year ago, despite a 68% increase in revenue. The wider loss was attributed primarily to an increase in operating expenses reflecting additional interest, depreciation and amortization expense incurred for the GMH portfolio and higher non-operating expenses. The company also revised its full year financial guidance.
Net loss attributable to shareholders for the second quarter was $5.31 million or $0.11 per share, compared to $1.45 million or $0.04 per share in the previous year.
Funds from operations, or FFO, for the 2009 second quarter totaled $15.4 million, or $0.31 per share. Funds from operations - modified for operational performance of on-campus participating properties, or FFOM, for the 2009 second quarter was $16.2 million, or $0.33 per share, compared to $10.59 million or $0.28 per share a year ago.
Total revenues for the quarter increased 68.3% to $73.27 million from $43.55 million a year ago.
Segment wise, revenue from wholly-owned properties increased to $66.15 million from $37.29 million last year. On-campus participating properties revenues were $3.92 million, down from $3.95 million a year ago. Revenues from third-party development services increased to $0.89 million from $0.72 million and revenues from third-party management services increased to $2.10 million from $1.22 million last year. Resident services revenue declined to $0.20 million from $0.36 million.
Total operating expenses increased to $62.16 million from $36.28 million last year. Second-quarter operating expenses include depreciation and amortization charges of $20.40 million. Total non-operating expenses increased to $16.27 million from $8.67 million a year ago.
For the six-month period, net loss attributable to shareholders was $5.03 million or $0.12 per share, compared to an income of $3.46 million or $0.11 per share in the same period of the previous year. Total revenues for the period increased to $151.01 million from $84.99 million last year.
Looking forward, the company revised its full year financial guidance to reflect the impact of the recent equity offering, timing related to third-party development starts and the anticipated results of the lease-up efforts for the 2009-2010 academic year.
The company expects results for the full year to range from a loss of $0.02 per share to earnings of $0.08 per share.
Fiscal year 2009 FFO is expected in the range of $1.41 to $1.53 per share and FFOM in the range of $1.35 to $1.47 per share.
Previously, the company expected FFO in the range of $1.59 to $1.77 per share and FFOM in a range of $1.52 to $1.70 per share.
ACC closed Tuesday's regular trading at $23.33, down 0.16 or 0.68%, on a volume of 0.78 million on the NYSE.
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