EX-99.1 2 v424849_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

Third Quarter 2015

Supplemental Analyst Package

 

  Contact:  
  Investor Relations
  704-496-2571
  Investor.Relations@CampusCrest.com

 

 Page 1

 

 

 

 

THIRD QUARTER 2015

SUPPLEMENTAL ANALYST PACKAGE

TABLE OF CONTENTS

 

Financial Highlights 3
   
Condensed Consolidated Balance Sheets 4
   
Condensed Consolidated Statements of Operations 5
   
Reconciliation of Net Income (Loss) Attributable to Common Stockholders to FFO, FFOA and Net Operating Income 6 - 7
   
Wholly Owned Grove Property Results of Operations 8
   
Quarterly Wholly Owned Grove Property Results of Operations 9
   
Same Store Wholly Owned Property Operating Expenses 10
   
Copper Beech Property Results of Operations 11
   
HSRE and Beaumont Joint Venture Property Results of Operations 12
   
Capital Structure as of September 30, 2015 13
   
Outstanding Debt and Maturity Schedule 14
   
Outstanding Debt and Maturity Schedule - Joint Venture 15
   
Portfolio Overview and Occupancy 16 - 18
   
Investor Information 19
   
Forward-Looking Statements 20

 

 Page 2

 

  

CAMPUS CREST COMMUNITIES
 
 
FINANCIAL HIGHLIGHTS (unaudited)
(in $000s, except per share and per bed data)
 
 

 

  Three Months Ended September 30,   Nine Months Ended September 30,  
  2015   2014   $ Change   % Change   2015   2014   $ Change   % Change  
                                 
Total revenues $44,609   $28,309   $16,300   57.6%   $130,617   $78,010   $52,607   67.4%  
NOI $19,214   $15,515   $3,699   23.8%   $67,634   $43,425   $24,209   55.8%  
Net income (loss) attributable to common stockholders 1, 2 ($14,692)   ($129,974)   $115,282   (88.7%)   ($21,002)   ($135,414)   $114,412   (84.5%)  
Net income (loss) per share - basic3 ($0.23)   ($2.01)   $1.78   (88.6%)   ($0.32)   ($2.09)   $1.77   (84.7%)  
FFO ($1,841)   ($118,125)   $116,284   (98.4%)   $8,307   ($95,383)   $103,690   (108.7%)  
FFO per share - basic3 ($0.03)   ($1.82)   $1.79   (98.4%)   $0.13   ($1.48)   $1.61   (108.8%)  
FFOA ($2,048)   $10,447   ($12,495)   (119.6%)   $10,560   $29,000   ($18,440)   (63.6%)  
FFOA per share - basic3 ($0.03)   $0.16   ($0.19)   (118.8%)   $0.16   $0.45   ($0.29)   (64.4%)  
                                 
Debt to total market capitalization 63.0%   50.5%   n/a   12.5%   63.0%   50.5%   n/a   12.5%  
                                 
Operating Statistics                                
                                 
Wholly Owned - Grove                                
Total RevPOB 4 $506   $530   ($24)   (4.4%)   $535   $527   $8   1.6%  
Average Physical Occupancy 5 86.8%   88.1%   n/a   (1.3%)   87.7%   88.5%   n/a   (0.8%)  
                                 
Wholly Owned - Copper Beech                                
Total RevPOB 4 $525   $501   $24   4.9%   $501   $492   $9   1.8%  
Average Physical Occupancy 5 88.3%   90.9%   n/a   (2.6%)   91.2%   89.5%   n/a   1.7%  
                                 

 

1For the three and nine months ended September 30, 2015 and 2014, results include certain equity in earnings (losses) in unconsolidated entities, severance, transaction costs and write offs of other corporate assets.

2For the three months ended September 30, 2015 and 2014, includes results from the Company’s investment in Copper Beech. The Company made its initial investment in Copper Beech on March 18, 2013 and subsequently made additional investments. On September 30, 2013, the Company entered into an amendment to the purchase and sale agreement that enabled the Company to acquire a 67% ownership interest in 28 operating properties, while deferring ownership in 7 properties until the Company exercises future purchase options. On August 18, 2014, the Company elected to not exercise the first purchase option and reverted to a 48% ownership interest in 35 operating properties. On January 30, 2015, the Company completed the initial closing of the Copper Beech transaction. As of September 30, 2015, the Company held a 100% interest in 29 Copper Beech properties and partial interest in 5 Copper Beech properties.

3For the period ended September 30, 2015, shares issuable upon settlement of the exchange feature of the Exchangeable Senior notes were anti-dilutive and were not included in the computation of earnings per share.

4Total revenue per occupied bed includes rental and service revenues.

5Average monthly occupancy.

 

 Page 3

 

  

CAMPUS CREST COMMUNITIES
 
 
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in $000s)
 
 

 

    September 30,   December 31,
    2015   2014
         
Assets        
Investment in real estate, net:        
Student housing properties1   $1,581,512   $935,962
Accumulated depreciation   (163,748)   (128,121)
Land and properties held for sale2   15,019   37,163
Land held for investment3   7,413   7,413
Investment in real estate, net   1,440,196   852,417
Investment in unconsolidated entities1   81,852   259,740
Cash and cash equivalents   16,166   15,240
Restricted cash3   11,434   5,429
Student receivables, net   3,606   1,587
Cost and earnings in excess of construction billings   -      3,887
Intangible assets, net   4,691   -  
Other assets   25,635   35,742
Total assets   $1,583,580   $1,174,042
         
Liabilities and equity        
Liabilities:        
Mortgage and construction loans   $602,223   $300,673
Line of credit and other debt   369,714   317,746
Accounts payable and accrued expenses   35,567   53,816
Construction billings in excess of cost and earnings   -     481
Other liabilities   32,370   22,092
Total liabilities   1,039,874   694,808
Equity:        
Preferred stock   $61   $61
Common stock   648   648
Additional common and preferred paid-in capital   781,540   773,998
Accumulated deficit and distributions   (313,418)   (301,566)
Accumulated other comprehensive loss   (3,695)   (2,616)
Total stockholders' equity   465,136   470,525
Noncontrolling interests   78,570   8,709
Total equity   543,706   479,234
Total liabilities and equity   $1,583,580   $1,174,042
         

 

1 As of September 30, 2015, the Company's 100% interest in 29 Copper Beech properties (and Copper Beech at Ames), pursuant to the closing of the Copper Beech transaction, is included in "Student housing properties." In prior periods, the Company's investment in these properties was included in "Investment in unconsolidated entities."

2 As of September 30, 2015, includes four land parcels and one property that the Company intends to divest.

3 As of September 30, 2015, includes six strategically held land parcels that could be used for the development of phase two properties, with an aggregate bed count ranging from approximately 1,000 to 1,500.

4 Restricted cash includes escrow accounts held by lenders for the purpose of paying taxes, insurance and funding capital improvements.

 

 Page 4

 

  

CAMPUS CREST COMMUNITIES
 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)    
(in $000s, except per share data)    
                         
                         
                         
    Three Months Ended September 30,   Nine Months Ended September 30,
    2015   2014   $ Change   2015   2014   $ Change
                         
Revenues:                        
Student housing rental   $42,254   26,985   $15,269   124,766   74,256   $50,510
Student housing services   2,196   1,043   1,153   5,251   3,043   2,208
Property management services   159   281   (122)   600   711   (111)
Total revenues   44,609   28,309   16,300   130,617   78,010   52,607
Operating expenses:                        
Student housing operations   25,236   12,513   12,723   62,383   33,874   28,509
General and administrative   8,404   3,178   5,226   26,865   10,332   16,533
Severance1   -   720   (720)   570   720   (150)
Write-off of predevelopment costs   -   29,790   (29,790)   -   29,790   (29,790)
Write-off of other assets   796   7,765   (6,969)   2,162   7,765   (5,603)
Transaction costs2   758   286   472   3,890   2,331   1,559
Ground leases   121   120   1   361   357   4
Depreciation and amortization   18,913   7,036   11,877   66,530   21,270   45,260
Total operating expenses   54,228   61,408   (7,180)   162,761   106,439   56,322
Equity in earnings (loss) of unconsolidated entities3,4   (973)   635   (1,608)   (2,332)   63   (2,395)
Impairment of unconsolidated entities   -   (50,866)   50,866   -   (50,866)   50,866
Effect of not exercising Copper Beech purchase option   -   (34,047)   34,047   -   (34,047)   34,047
Operating income (loss)   (10,592)   (117,377)   106,785   (34,476)   (113,279)   78,803
Nonoperating income (expense):                        
Interest expense, net   (9,239)   (3,639)   (5,601)   (26,297)   (9,965)   (16,332)
Gain on purchase of Copper Beech5   (1,242)   -   (1,242)   26,793   -   26,793
Gain on purchase of unconsolidated entity6   6,370   -   6,370   6,370   -   6,370
Gain on sale of assets7   1,400   -   1,400   9,148   -   9,148
Other income (expense)   (626)   (41)   (585)   (677)   129   (806)
Total nonoperating expense, net   (3,337)   (3,680)   342   15,337   (9,836)   25,173
Net income (loss) before income tax benefit (expense)   (13,929)   (121,057)   107,128   (19,139)   (123,115)   103,976
Income tax benefit (expense)   (164)   (1,131)   967   (164)   (731)   567
Income (loss) from continuing operations   (14,093)   (122,188)   108,095   (19,303)   (123,846)   104,543
Income (loss) from discontinued operations8   -   (5,506)   5,506   (1,157)   (3,191)   2,034
Net income (loss)   (14,093)   (127,694)   113,601   (20,460)   (127,037)   106,577
Less: Dividends on preferred stock   3,050   3,050   -   9,150   9,150   -
Less: Net income or (loss) attributable to noncontrolling interests   (2,451)   (770)   (1,681)   (8,608)   (773)   (7,835)
Net income (loss) attributable to common stockholders   ($14,692)   ($129,974)   $115,282   ($21,002)   ($135,414)   $114,412
                         
Per share data - basic                        
Income (loss) from continuing operations attributable to common stockholders   ($0.23)   ($1.92)       ($0.30)   ($2.04)    
Income (loss) from discontinued operations attributable to common stockholders   -   ($0.09)       ($0.02)   ($0.05)    
Net income (loss) per share attributable to common stockholders   ($0.23)   ($2.01)       ($0.32)   ($2.09)    
                         
Weighted average common shares outstanding:                        
Basic and diluted   64,762   64,770       64,746   64,650    
                         

 

1For the nine months ended September 30, 2015, severance includes termination benefits for former executives in connection with the Company's strategic repositioning.

2Transaction costs were $0.8 million for the three months ended September 30, 2015, primarily attributable to costs associated with our strategic alternative process of $0.4 million and various other costs aggregating to $0.4 million. Transaction costs were $3.9 million for the nine months ended September 30, 2015, primarily attributable to consents, professional fees and other related costs totaling $2.9 million related to the Copper Beech acquisition, $0.4 million associated with our strategic alternative process, and $0.6 million related to various other costs.

3For the nine months ended September 30, 2015 and 2014, includes results from the Company’s investment in Copper Beech. The Company made its initial investment in Copper Beech on March 18, 2013 and subsequently made additional investments. On September 30, 2013, the Company entered into an amendment to the purchase and sale agreement that enabled the Company to acquire a 67% ownership interest in 28 operating properties, while deferring ownership in 7 properties until the Company exercises future purchase options. On August 18, 2014, the Company elected to not exercise the first purchase option and reverted to a 48% interest ownership interest in 35 operating properties. On January 30, 2015, the Company completed the initial closing of the Copper Beech transaction. As of September 30, 2015, the Company held a 100% interest in 29 Copper Beech properties and partial interest in 5 Copper Beech properties.

4For the three months and nine months ended September 30, 2015, $1.3 million and $2.3 million equity in losses of unconsolidated entities were contributed from the Montreal operations, respectively.

5For the three months ended September 30, 2015, the gain on Copper Beech was reduced by $1.2 million which related to a settlement with CB Investors of all outstanding items. This brings the total gain through the nine months ended September 30, 2015 to $26.8 million.

6During the three months ended September 30, 2015, the Company acquired its remaining interest in The Grove at Fayetteville, Arkansas. In connection with that purchase, a $6.4 million gain was recognized.

7In connection with the previously announced strategic repositioning the Company recognized a $3.1 million gain from the sale of a portfolio of six undeveloped land parcels in 1Q 2015. The Company also recognized a $4.6 million gain from the sale of The Grove at Lawrence, Kansas and The Grove at Conway, Arkansas in 1Q 2015. In 3Q 2015, the Company recognized a $1.4 million gain from the sale of The Grove at Laramie, Wyoming, The Grove at Norman, Oklahoma and the Grove at San Angelo, Texas.

8No construction and development revenues were recorded during the three months ended September 30, 2015. For the nine months ended September 30, 2015, the Company recorded expenses of $1.2 million due to the wind down of its construction and development operations. For the three months ended September 30, 2014, the Company recorded $5.6 million of revenues and $11.1 million of expenses for a loss of $5.5 million. For the nine months ended September 30, 2014, the Company recorded revenue from its construction and development operations of $23.2 million and expenses of $26.4 million resulting in loss of $3.2 million.

 

 Page 5

 

 

CAMPUS CREST COMMUNITIES
                         
                         
RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS TO FUNDS FROM OPERATIONS ("FFO") & FUNDS FROM OPERATIONS ADJUSTED ("FFOA") (unaudited)
(in $000s, except per share data)
                         
                         
                         
    Three Months Ended September 30,   Nine Months Ended September 30,
    2015   2014   $ Change   2015   2014   $ Change
                       
Net loss attributable to common stockholders ($14,692)   ($129,974)   $115,282   ($21,002)   ($135,414)   $114,412
Real estate related depreciation and amortization                 18,359                     6,590                      11,769                      64,555                      20,175                      44,380
Real estate related depreciation and amortization - unconsolidated entities                   1,020                     5,259                       (4,239)                        7,065                      19,856                     (12,791)
Gain on sale of assets1                  (1,400)                          -                          (1,400)                       (9,148)                             -                          (9,148)
Gain on purchase of unconsolidated entity2                  (6,370)                          -                          (6,370)                       (6,370)                             -                          (6,370)
Loss (gain) on purchase of Copper Beech3                   1,242                          -                           1,242                     (26,793)                             -                        (26,793)
FFO available to common shares                  (1,841)                 (118,125)                    116,284                        8,307                     (95,383)                    103,690
Elimination of the following:                      
Transaction costs4                      758                        286                           472                        3,890                        2,331                        1,559
Impairment of land and predevelopment costs                        -                      29,790                     (29,790)                             -                         29,790                     (29,790)
Impairment of unconsolidated entities                        -                      50,866                     (50,866)                             -                         50,866                     (50,866)
Write-off of other assets                      796                     7,765                       (6,969)                        2,162                        7,765                       (5,603)
Severance                        -                           720                          (720)                           570                           720                          (150)
Income tax expense                      164                     1,131                          (967)                           164                           731                          (567)
Discontinued operations5                        -                        5,506                       (5,506)                        1,157                        3,191                       (2,034)
Effect of not exercising Copper Beech purchase option                        -                      34,047                     (34,047)                             -                         34,047                     (34,047)
FV adjustment of CB debt6                  (1,925)                    (1,539)                          (386)                       (5,690)                       (5,058)                          (632)
Funds from operations adjusted (FFOA) available to common shares ($2,048)   $10,447   ($12,495)   $10,560   $29,000   ($18,440)
                       
FFO per share - basic ($0.03)   ($1.82)   $1.79   $0.13   ($1.48)   $1.61
FFOA per share - basic ($0.03)   $0.16   ($0.19)   $0.16   $0.45   ($0.29)
                       
Weighted average common shares - basic                 64,762                   64,770                          64,746                      64,650    
                       

 

1In connection with the previously announced strategic repositioning the Company recognized a $3.1 million gain from the sale of a portfolio of six undeveloped land parcels in 1Q 2015. The Company also recognized a $4.6 million gain from the sale of The Grove at Lawrence, Kansas and The Grove at Conway, Arkansas in 1Q 2015. In 3Q 2015, the Company recognized a $1.4 million gain from the sale of The Grove at Laramie, Wyoming, The Grove at Norman, Oklahoma and the Grove at San Angelo, Texas.

2During the three months ended September 30, 2015, the Company acquired its remaining interest in The Grove at Fayetteville, Arkansas. In connection with that purchase, a $6.4 million gain was recognized.

3During the quarter ended September 30, 2015, the Company reached agreement with the CB Investors on all outstanding matters which resulted in a reduction of the gain on the purchase of Copper Beech of $1.2 million.

4Transaction costs were $0.8 million for the three months ended September 30, 2015, primarily attributable to costs associated with our strategic alternative process of $0.4 million and various other costs aggregating to $0.4 million.Transaction costs were $3.9 million for the nine months ended September 30, 2015, primarily attributable to consents, professional fees and other related costs totaling $2.9 million related to the Copper Beech acquisition, $0.4 million associated with our strategic alternative process, and $0.6 million related to various other costs.

5No construction and development revenues were recorded during the three months ended September 30, 2015. For the nine months ended September 30, 2015, the Company recorded expenses of $1.2 million due to the wind down of its construction and development operations. For the three months ended September 30, 2014, the Company recorded $5.6 million of revenues and $11.1 million of expenses for a loss of $5.5 million. For the nine months ended September 30, 2014, the Company recorded revenue from its construction and development operations of $23.2 million and expenses of $26.4 million resulting in loss of $3.2 million.

6Includes the Company's proportionate share of non-cash fair value debt and other purchase accounting adjustments in its investment in Copper Beech accounted for under the equity method, as well as the fair value of debt adjustments for those Copper Beech properties consolidated during the nine months ended September 30, 2015.

 

 Page 6

 

 

CAMPUS CREST COMMUNITIES
                   
                   
RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS TO NET OPERATING INCOME ("NOI") (unaudited)
(in $000s, except per share data)
                   
                   
                   

    Three Months Ended September 30,   Nine Months Ended September 30,  
    20151   20141   20151   20141  
                   
Net income (loss) attributable to common stockholders ($14,692)   ($129,974)   ($21,002)   ($135,414)  
Net loss attributable to noncontrolling interests (2,451)   (770)   (8,608)   (773)  
Preferred stock dividends 3,050   3,050   9,150   9,150  
Income tax expense 164   1,131   164   731  
Other (income) expense 626   41   677   (129)  
Gain on sale of assets (1,400)    -   (9,148)    -  
Gain of purchase of unconsolidated entity (6,370)    -   (6,370)    -  
Severance  -   720   570   720  
(Gain) loss on purchase of Copper Beech 1,242    -   (26,793)    -  
(Income) loss on discontinued operations  -   5,506   1,157   3,191  
Interest expense 9,239   3,639   26,297   9,965  
Equity in losses of unconsolidated entities 973   (635)   2,332   (63)  
Depreciation and amortization 18,913   7,036   66,530   21,270  
Impairment of investment in unconsolidated joint venture  -    -    -    -  
Ground lease expense 121   120   361   357  
General and administrative expense 8,404   3,178   26,865   10,332  
Impairment of unconsolidated entities  -   50,866    -   50,866  
Effect of not exercising Copper Beech purchase option  -   34,047    -   34,047  
Impairment of land, predevelopment costs and asset held for sale  -   29,790    -   29,790  
Write-off of corporate other assets 796   7,765   2,162   7,765  
Transaction costs 758   286   3,890   2,331  
Property management services (159)   (281)   (600)   (711)  
Total NOI $19,214   $15,515   $67,634   $43,425  
Grove same store properties NOI2 $8,688   $12,232   $35,786   $37,709  
Wholly owned Copper Beech properties NOI $7,941    $ -   $22,427    $ -  
New properties NOI3,4 $1,903   $2,407   $7,249   $3,349  
Grove Pullman and Toledo NOI5 $682   $876   $2,172   $2,367  
                 

 

1 "Same store" properties are the Company's wholly-owned operating properties acquired or placed in-service prior to the beginning of the earliest period presented and owned by the Company and remaining in service through the end of the latest period presented or period being analyzed. "New properties" are the Company's wholly-owned operating properties acquired or placed in service after the beginning of the earliest period presented or period being analyzed.

2 Includes NOI contribution from Copper Beech at Ames. This is a consolidated wholly-owned property.

3 For the three and nine months ended September 30, 2015 and 2014, includes financial results for The Grove at Denton. The Company acquired its joint venture partner's interest in The Grove at Denton on January 21, 2014. The occupancy data and net operating income related to Denton are included in new properties in the subsequent pages. Net operating income earned after acquisition is reported above, while amounts earned prior to acquisition were reported under the equity method of accounting.

4 For the three and nine months ended September 30, 2015, includes financial results for The Grove at Fayetteville. The Company acquired its joint venture partner's interest in The Grove at Fayetteville on August 7, 2015. The occupancy data and net operating income related to Fayetteville are included in new properties in the subsequent pages. Net operating income earned after acquisition is reported above, while amounts earned prior to acquisition were reported under the equity method of accounting.

5 Includes NOI contribution from the operations of The Grove at Pullman and the Toledo, OH redevelopment, as well as business interruption insurance proceeds from The Grove at Pullman.

 

 Page 7

 

 

CAMPUS CREST COMMUNITIES
                                     
                                     
WHOLLY OWNED GROVE PROPERTY RESULTS OF OPERATIONS (unaudited)
(in $000s, except bed data)
                                     
                                     
                                     
        Three Months Ended September 30,   Nine Months Ended September 30,
        2015   2014   Change   % Change   2015   2014   Change   % Change
                                 
Same store properties (Number of properties)1, 2   30   30           30   30        
Revenue per occupied bed                                
Rental revenue per occupied bed per month3   $489   $505   ($16)   (3.2%)   $513   $503   $10   2.1%
Services revenue per occupied bed per month   19   21   (2)   (11.9%)   19   21   (2)   (9.9%)
Total revenue per occupied bed   $508   $526   ($18)   (3.4%)   $532   $524   $8   1.6%
                                 
Average number of owned beds   16,308   16,308           16,308   16,308        
Average physical occupancy   87.3%   90.1%       (2.8%)   89.1%   89.9%       (0.9%)
                                 
Total revenue   $21,763   $23,172   ($1,409)   (6.1%)   $69,709   $69,162   $547   0.8%
Property operating expenses   13,075   10,940   2,135   19.5%   33,923   31,453   2,470   7.9%
Net operating income   $8,688   $12,232   ($3,544)   (29.0%)   $35,786   $37,709   ($1,923)   (5.1%)
Operating margin4   39.9%   52.8%       (12.9%)   51.3%   54.5%       (3.2%)
                                 
New properties (Number of properties)5, 6   7   7   0       7   7   0    
Revenue per occupied bed                                
Rental revenue per occupied bed per month3   $481   $535   ($54)   (10.1%)   $533   $533   $0   0.0%
Services revenue per occupied bed per month   18   18   (0)   (0.2%)   16   18   (2)   (11.1%)
Total revenue per occupied bed   $499   $553   ($54)   (9.8%)   $549   $551   ($2)   (0.4%)
                                 
Average number of owned beds   4,321   3,286           4,321   1,906        
Average physical occupancy   85.1%   78.2%       6.9%   82.5%   75.9%       6.5%
                                 
Total revenue   $5,505   $4,264   $1,241   29.1%   $17,612   $7,127   $10,485   147.1%
Property operating expenses   3,474   1,679   1,795   106.9%   9,651   3,275   6,376   194.7%
Net operating income   $2,032   $2,584   ($552)   (21.3%)   $7,961   $3,852   $4,109   106.7%
Operating margin4   36.9%   60.6%       (23.7%)   45.2%   54.0%       (8.8%)
                                 
ALL PROPERTIES (Number of properties)   37   37   0       37   37   0    
Revenue per occupied bed                                
Rental revenue per occupied bed per month3   $487   $509   ($22)   (4.4%)   $517   $506   $11   2.2%
Services revenue per occupied bed per month   19   20   (1)   (6.5%)   18   21   (3)   (14.3%)
Total revenue per occupied bed   $506   $530   ($24)   (4.5%)   $535   $527   $8   1.5%
                                 
Average number of owned beds   20,629   19,594           20,629   18,214        
Average physical occupancy   86.8%   88.1%       (1.3%)   87.7%   88.5%       (0.8%)
                                 
Total revenue   $27,269   $27,436   ($167)   (0.6%)   $87,320   $76,289   $11,031   14.5%
Property operating expenses   16,549   12,619   3,930   31.1%   43,574   34,727   8,847   25.5%
Net operating income   $10,720   $14,817   ($4,097)   (27.7%)   $43,746   $41,562   $2,184   5.3%
Operating margin4   39.3%   54.0%       (14.7%)   50.1%   54.5%       (4.4%)
                                 
The Grove at Pullman & Toledo NOI7   $682   $876   ($194)   (22.1%)   $2,172   $2,367   ($195)   (8.2%)
                                 

 

1Excludes financial results from The Grove at Pullman. On July 14, 2013, the Company experienced a fire at this property during development. As of September 30, 2015, all 584 beds were in operation. For comparability of results, Pullman will continue to be excluded until year over year results are not impacted by the business interruption.

2Excludes financial results from the Toledo, OH redevelopment property the Company acquired on March 15, 2013.

3Beginning with the ‘14/’15 academic year, the Company recognizes revenue for new leases over the term of the lease (typically 11.5 months) rather than in conjunction with the lease payments (typically 12 equal monthly payments). While this policy change will have no cash impact, and will have minimal year-over-year impact on a go-forward basis, the adjustment has the effect of lower reported revenue in three and nine months ended September 30, 2015, as compared to prior year.

4Operating margin is calculated by dividing NOI for the period by total student housing rental and services revenues for the period.

5For the three and nine months ended September 30, 2015 and 2014, includes financial results for The Grove at Denton and The Grove at Fayetteville. The Company acquired its joint venture partner's interest in The Grove at Denton on January 21, 2014 and the interest in The Grove at Fayetteville on August 7, 2015. The occupancy data and net operating income related to Denton and Fayetteville are included in new properties. Note that the portion of earnings prior to the properties becoming wholly owned were captured in the Equity in Earnings line in the comprehensive statements of income (loss). For comparability, full period results have been shown herein and therefore will not agree to Page 7.

6For the three and nine months ended September 30, 2015, includes financial results for the 2014 wholly-owned and consolidated deliveries (The Grove at Gainesville, The Grove at Grand Forks, The Grove at Slippery Rock, The Grove at Mt. Pleasant and Copper Beech at Ames).

7Includes NOI contribution from the operations of The Grove at Pullman and the Toledo, OH redevelopment property.

 

 Page 8

 

 

CAMPUS CREST COMMUNITIES
                           
                           
QUARTERLY WHOLLY OWNED GROVE PROPERTY RESULTS OF OPERATIONS (unaudited)
(in $000s, except bed data)
                           
                           
                           

        Three Months Ended  
        September 30, 2014   December 31, 2014   March 31, 2015   June 30, 2015   September 30, 2015  
                           
Same store properties (Number of properties)1, 2   30   30   30   30   30  
Revenue per occupied bed                      
Rental revenue per occupied bed per month3   $505   $512   $525   $529   $489  
Services revenue per occupied bed per month   21   15   17   20   19  
Total revenue per occupied bed   $526   $527   $542   $549   $508  
                       
Average number of owned beds   16,308   16,308   16,308   16,308   16,308  
Average physical occupancy   90.1%   91.6%   90.7%   89.2%   87.3%  
                       
Total revenue   $23,172   $24,120   $24,075   $23,871   $21,763  
Property operating expenses   10,940   10,388   10,473   10,375   13,075  
Net operating income   $12,232   $13,732   $13,602   $13,496   $8,688  
Operating margin4   52.8%   56.9%   56.5%   56.5%   39.9%  
                       
New properties (Number of properties)5, 6, 7   7   7   7   7   7  
Revenue per occupied bed                      
Rental revenue per occupied bed per month3   $535   $531   $558   $563   $481  
Services revenue per occupied bed per month   18   11   14   16   18  
Total revenue per occupied bed   $553   $541   $572   $579   $499  
                       
Average number of owned beds   3,286   4,321   4,321   4,321   4,321  
Average physical occupancy   78.2%   80.5%   80.9%   81.4%   85.1%  
                       
Total revenue   $4,264   $5,649   $6,001   $6,106   $5,505  
Property operating expenses   1,679   2,426   3,058   3,120   3,474  
Net operating income   $2,584   $3,223   $2,943   $2,987   $2,032  
Operating margin4   60.6%   57.1%   49.0%   48.9%   36.9%  
                       
ALL PROPERTIES (Number of properties)   37   37   37   37   37  
Revenue per occupied bed                      
Rental revenue per occupied bed per month3   $509   $516   $532   $535   $487  
Services revenue per occupied bed per month   20   14   16   19   19  
Total revenue per occupied bed   $530   $529   $548   $555   $506  
                       
Average number of owned beds   19,594   20,629   20,629   20,629   20,629  
Average physical occupancy   88.1%   89.2%   88.7%   87.6%   86.8%  
                       
Total revenue   $27,436   $29,770   $30,076   $29,977   $27,269  
Property operating expenses   12,619   12,814   13,531   13,494   16,549  
Net operating income   $14,817   $16,955   $16,545   $16,483   $10,720  
Operating margin4   54.0%   57.0%   55.0%   55.0%   39.3%  
                       
The Grove at Pullman & Toledo NOI8   $876   $910   $721   $769   $682  
                       

 

1Excludes financial results from The Grove at Pullman. On July 14, 2013, the Company experienced a fire at this property during development. As of September 2015, all 584 beds were in operation. For comparability of results, Pullman will continue to be excluded until year over year results are not impacted by the business interruption.

2Excludes financial results from the Toledo, OH redevelopment property the Company acquired on March 15, 2013.

3Beginning with the ‘14/’15 academic year, the Company recognizes revenue for new leases over the term of the lease (typically 11.5 months) rather than in conjunction with the lease payments (typically 12 equal monthly payments). While this policy change will have no cash impact, and will have minimal year-over-year impact on a go-forward basis, the adjustment has the effect of lower reported revenue in the three ended September 30, 2015, as compared to prior year. 

4Operating margin is calculated by dividing NOI for the period by total student housing rental and services revenues for the period.

5For all periods, includes financial results for the 2014 wholly-owned deliveries (The Grove at Gainesville, The Grove at Grand Forks, The Grove at Slippery Rock, The Grove at Mt. Pleasant and Copper Beech at Ames).

6For all periods, includes financial results for The Grove at Denton. The Company acquired its joint venture partner's interest in the Grove at Denton on January 21, 2014.

7For all periods, includes financial results for The Grove at Fayetteville. The Company acquired its joint venture partner's interest in the Grove at Fayetteville on August 7, 2015.

8Includes NOI contribution from the operations of The Grove at Pullman and the Toledo, OH redevelopment property.

 

 Page 9

 

 

CAMPUS CREST COMMUNITIES
                                   
                                   
SAME STORE WHOLLY OWNED GROVE PROPERTY OPERATING EXPENSES (unaudited)
(in $000s, except bed data)
                                   
                                   
                                   
    Three Months Ended September 30, 2015   Three Months Ended September 30, 2014   Y-o-Y Total Change
    Total   % of Total   Per Bed/Month     Total   % of Total   Per Bed/Month   $   %
                                   
Payroll   $2,824   21.6%   $58     $2,401   21.9%   $49   $423   17.6%
Marketing    501   3.8%   10      375   3.4%   8   127   33.8%
Office, Administration & Other    811   6.2%   17      643   5.9%   13   168   26.1%
Bad Debt    464   3.5%   9      1,378   12.6%   28   (914)   (66.3%)
Utilities    3,610   27.6%   74      3,120   28.5%   64   490   15.7%
Repairs and Maintenance1    2,463   18.8%   50      795   7.3%   16   1,668   209.7%
Taxes and Insurance    2,401   18.4%   49      2,228   20.4%   46   174   7.8%
Total   $13,075   100.0%   $267     $10,940   100.0%   $224   $2,135   19.5%
                                   
Same Store                                  
Wholly Owned Beds    16,308              16,308                
Wholly Owned Properties    30              30                
                                   
                                   
    Nine Months Ended September 30, 2015   Nine Months Ended September 30, 2014   Y-o-Y Total Change
    Total   % of Total   Per Bed/Month     Total   % of Total   Per Bed/Month   $   %
                                   
Payroll   $7,762   22.9%   $53     $7,005   22.2%   $48   $757   10.8%
Marketing   1,101   3.2%   7     949   3.0%   6   152   16.0%
Office, Administration & Other   2,102   6.2%   14     1,884   6.0%   13   218   11.6%
Bad Debt   1,497   4.4%   10     2,125   6.8%   14   (628)   (29.6%)
Utilities   10,303   30.4%   70     9,913   31.5%   68   390   3.9%
Repairs and Maintenance1   3,911   11.5%   27     2,759   8.8%   19   1,152   41.8%
Taxes and Insurance   7,247   21.4%   49     6,849   21.8%   47   398   5.8%
Total   $33,923   100.0%   $231     $31,484   100.0%   $215   $2,439   7.7%
                                   
Same Store                                  
Wholly Owned Beds    16,308              16,308                
Wholly Owned Properties    30              30                
                                   

 

1During the '14/'15 academic year, the Company changed its accounting policy in connection with turn expenses to recognize costs in the period in which they are incurred as compared to its previous policy of accounting for the costs of turn ratably over the twelve month academic year. As a result, on a going forward basis, expenses related to turn will be predominantly recognized during the third quarter of the year.

 

 Page 10

 

 

CAMPUS CREST COMMUNITIES      
                               
                               
COPPER BEECH PROPERTY RESULTS OF OPERATIONS (unaudited)    
(in $000s, except bed data)      
                               
                               
                               
  Three Months Ended September 30,   Nine Months Ended September 30,
  2015   2014   Change   % Change   2015   2014   Change   % Change
                               
Wholly owned same store properties (Number of properties)1, 2 29   29   -         29   29   -      
Revenue per occupied bed                              
Rental revenue per occupied bed per month $477   $456   $21   4.7%   $461   $456   $5   1.1%
Services revenue per occupied bed per month 48   45   3   7.1%   40   36   4   10.2%
Total revenue per occupied bed $525   $501   $24   4.9%   $501   $492   $9   1.8%
                               
Average number of owned beds 11,520   11,520           11,520   11,520        
Average physical occupancy 88.3%   90.9%       (2.6%)   91.2%   89.5%       1.7%
                               
Total revenue $16,051   $15,745   $306   1.9%   $47,377   $45,657   $1,719   3.8%
Property operating expenses 8,110   6,144   1,965   32.0%   20,261   17,501   2,760   15.8%
Net operating income3 $7,941   $9,601   ($1,659)   (17.3%)   $27,116   $28,157   ($1,041)   (3.7%)
Operating margin4 49.5%   61.0%       (11.5%)   57.2%   61.7%       (4.5%)
                               
Joint venture same store properties (Number of properties)5 5   5   -         5   5   -      
Revenue per occupied bed                              
Rental revenue per occupied bed per month $521   $496   $25   5.1%   $505   $491   $14   2.8%
Services revenue per occupied bed per month 54   48   6   12.2%   41   39   2   4.9%
Total revenue per occupied bed $575   $544   $31   5.8%   $546   $530   $15   2.9%
                               
Average number of owned beds 4,343   4,343           4,343   4,343        
Average physical occupancy 92.9%   94.9%       (2.0%)   94.4%   95.0%       (0.6%)
                               
Total revenue $6,969   $6,729   $241   3.6%   $20,136   $19,692   $444   2.3%
Property operating expenses 2,703   2,345   358   15.3%   6,891   6,744   147   2.2%
Net operating income $4,267   $4,383   ($117)   (2.7%)   $13,244   $12,948   $297   2.3%
Operating margin4 61.2%   65.1%       (3.9%)   65.8%   65.8%       0.0%
                               
ALL PROPERTIES (Number of properties) 34   34   -         34   34   -      
Revenue per occupied bed                              
Rental revenue per occupied bed per month3 $490   $467   $23   4.8%   $473   $466   $7   1.6%
Services revenue per occupied bed per month 50   46   4   8.7%   40   37   3   8.6%
Total revenue per occupied bed $540   $513   $27   5.2%   $513   $503   $11   2.1%
                               
Average number of owned beds 15,863   15,863           15,863   15,863        
Average physical occupancy 89.6%   92.0%       (2.4%)   92.1%   91.0%       1.1%
                               
Total revenue $23,020   $22,474   $546   2.4%   $67,512   $65,349   $2,163   3.3%
Property operating expenses 10,813   8,489   2,323   27.4%   27,152   24,245   2,907   12.0%
Net operating income $12,207   $13,985   ($1,777)   (12.7%)   $40,360   $41,104   ($744)   (1.8%)
Operating margin4 53.0%   62.2%       (9.2%)   59.8%   62.9%       (3.1%)
                               

 

1On January 30, 2015, the Company completed the initial closing of the Copper Beech transaction and acquired the sellers' remaining interest in 25 student housing properties of a portfolio consisting of 36 student housing properties. During Q2 2015, the Company acquired the seller's' remaining interest in 4 additional properties. Remaining interest in Copper Beech at Ames was also acquired pursuant to the second amendment and has been included in the wholly owned Grove results of operations as it was historically a consolidated property.

2Excludes financial results from Copper Beech at Kalamazoo- Phase I. Pursuant to the initial closing of the Copper Beech transaction on January 30, 2015, the Company had no ownership interest in the property as of September 30, 2015.

3For the nine months ended September 30, 2015, $22,427 and $4,689 were recorded as consolidated net operating income and investment in unconsolidated entities, respectively.

4Operating margin is calculated by dividing NOI for the period by total student housing rental and services revenues for the period.

5Includes financial results for Copper Beech at Morgantown, Copper Beech at Harrisonburg, Copper Beech at State College - Parkway Plaza, Copper Beech at Greenville and Copper Beech at Kalamazoo - Phase II.

 

 Page 11

 

 

CAMPUS CREST COMMUNITIES      
                               
                               
HSRE AND BEAUMONT JOINT VENTURE AND OTHER PROPERTY RESULTS OF OPERATIONS (unaudited)
(in $000s, except per bed data)      
                               
                               
                               
  Three Months Ended September 30,   Nine Months Ended September 30,
  2015   2014   Change   % Change   2015   2014   Change   % Change
                               
HSRE AND BEAUMONT                              
Same store properties (Number of properties)1 2   2   -         2   2   -      
Revenue per occupied bed                              
Rental revenue per occupied bed per month2 $542   $597   ($55)   (9.2%)   $594   $587   $7   1.1%
Services revenue per occupied bed per month 23   21   2   10.4%   21   19   2   10.4%
Total revenue per occupied bed $565   $618   ($53)   (8.5%)   $615   $607   $7   1.2%
                               
Average number of owned beds 1,184   1,184           1,184   1,184        
Average physical occupancy 83.7%   82.2%       1.5%   81.8%   79.9%       1.9%
                               
Total revenue $1,680   $1,804   ($124)   (6.9%)   $5,357   $5,161   $196   3.8%
Property operating expenses 864   754   109   14.5%   2,673   2,560   113   4.4%
Net operating income $816   $1,050   ($233)   (22.2%)   $2,684   $2,602   $82   3.2%
Operating margin3 48.6%   58.2%       (9.6%)   50.1%   50.4%       (0.3%)
                               
NEW PROPERTIES (Number of properties)4 5   5   0       5   5   0    
Revenue per occupied bed                              
Rental revenue per occupied bed per month2 $776   $756   $20   2.6%   $839   $756   $83   10.9%
Services revenue per occupied bed per month 85   23   62   272.1%   105   23   82   356.4%
Total revenue per occupied bed $861   $779   $82   10.5%   $944   $779   $164   21.1%
                               
Average number of owned beds 4,277   2,134           4,277   711        
Average physical occupancy 51.0%   36.0%       15.0%   40.9%   36.0%       4.9%
                               
Total revenue $5,632   $1,796   $3,836   213.6%   $14,851   $1,796   $13,055   726.9%
Property operating expenses 3,610   850   2,760   324.7%   13,951   850   13,101   1541.2%
Net operating income $2,022   $946   $1,076   113.8%   $899   $946   ($47)   (4.9%)
Operating margin3 35.9%   52.7%       (16.8%)   6.1%   52.7%       (46.6%)
                               
ALL PROPERTIES (Number of properties)1,4 7   7   0       7   7   0    
Revenue per occupied bed                              
Rental revenue per occupied bed per month2 $703   $667   $36   5.3%   $752   $623   $128   20.6%
Services revenue per occupied bed per month 66   22   44   202.0%   75   20   55   277.6%
Total revenue per occupied bed $769   $689   $80   11.6%   $826   $643   $183   28.5%
                               
Average number of owned beds 5,461   3,318           5,461   1,895        
Average physical occupancy 58.1%   52.5%       5.6%   49.7%   63.4%       (13.7%)
                               
Total revenue $7,312   $3,600   $3,712   103.1%   $20,208   $6,957   $13,250   190.5%
Property operating expenses 4,474   1,604   2,869   178.8%   16,624   3,410   13,215   387.6%
Net operating income $2,839   $1,996   $843   42.2%   $3,583   $3,548   $36   1.0%
Operating margin3 38.8%   55.4%       (16.6%)   17.7%   51.0%       (33.3%)
                               
Preferred investments5, 6 $7,323   $2,682   $4,640       $7,323   $2,682   $4,640    
                               

 

1Excludes The Grove at Denton; the Company acquired its joint venture partner's interest in this property on January 21, 2014. Also excludes financial results from The Grove at Stillwater, The Grove at Conway and The Grove at Lawrence. The properties were sold during 1Q 2015. Excludes The Grove at Fayetteville; the Company acquired its joint venture partner's interest in this property on August 7, 2015.  Also excludes financial results from The Grove at Norman, The Grove at Laramie and The Grove at San Angelo, as those properties were sold during 3Q 2015.  Remaining properties are The Grove at Indiana and The Grove at State College.

2Beginning with the ‘14/’15 academic year, the Company recognizes revenue for new leases over the term of the lease (typically 11.5 months) rather than in conjunction with the lease payments (typically 12 equal monthly payments). While this policy change will have no cash impact, and will have minimal year-over-year impact on a go-forward basis, the adjustment related to changing the policy has the effect of higher reported revenue in the three months and nine months ended September 30, 2015, as compared to prior year.

3Operating margin is calculated by dividing NOI for the period by total student housing rental and services revenues for the period.  Expenses include property management fees as compared to prior year.

4For the three and nine months ended September 30, 2015 and 2014, includes financial results for the 2014 joint venture deliveries (The Grove at Greensboro, The Grove at Louisville, evo at Cira Centre South, evo Centre-Ville and evo Vieux-Montreal).

5As of September 30, 2015, the Company held preferred investments in The Grove at Indiana, The Grove at Greensboro and The Grove at Louisville of approximately $7,323.  These preferred interests entitle the Company to a 9.0% return on the investment but otherwise do not change its effective ownership interest in these properties.

6As of September 30, 2014, the Company held preferred investment in The Grove at Indiana of approximately $2,682.  This preferred interest entitles the Company to a 9.0% return on the investment but otherwise does not change its effective ownership interest in this property.

  

 Page 12

 

 

CAMPUS CREST COMMUNITIES  
             
             
CAPITAL STRUCTURE AS OF SEPTEMBER 30, 2015  
(in $000s, except per share data)  
             
             
             
             
             
Closing common stock price at September 30, 2015           $5.32
             
Common stock           64,632
Operating partnership units           12,809
Restricted stock           124
Total shares and units outstanding           77,565
             
Total equity market value           $412,646
Total preferred equity outstanding1           152,500
Total consolidated debt outstanding           961,265
Total market capitalization           $1,526,411
             
Debt to total market capitalization3, 4           63.0%
Debt to gross assets2, 3, 4           55.0%
             
Total number of unencumbered operating properties           28
             
        Weighted   Average
  Principal  % of Total   Average   Years to
Wholly Owned Debt3, 4 Outstanding Principal Outstanding   Interest Rate   Maturity
             
Fixed rate mortgage loans $396,485 41.2%   5.4%   2.4
Variable rate mortgage loan 45,920 4.8%   3.3%   1.8
Construction loans 150,583 15.7%   2.4%   1.2
Variable rate credit facility 263,500 27.4%   2.2%   1.3
Exchangeable notes5 97,925 10.2%   5.5%   3.1
Other debt6 6,852 0.7%   3.37%   6.0
Total/Weighted Average $961,265 100.0%   3.97%   2.0
             
18.00% Series A cumulative redeemable preferred stock redeemable February 2017.
2Gross assets is defined as total assets plus accumulated depreciation, as reported in the Company's September 30, 2015 consolidated balance sheet.
3Excludes debt associated with Copper Beech, HSRE and Beaumont joint ventures.  See page 15 for details related to this debt.  The Company is the guarantor of certain of these loans.  
4Wholly owned debt reflects principal balance, excluding impact of fair value debt and purchase accounting adjustments as reflected on the consolidated balance sheet.
5Senior unsecured exchangeable notes, maturity in October 2018.          
6Includes $4,181 Line of Credit assumed as part of the Copper Beech transaction and $2,308 bond assumed as a part of the purchase of the Flagstaff, AZ property.    

 

 

 Page 13

 

 

CAMPUS CREST COMMUNITIES                    
                           
                           
OUTSTANDING DEBT AND MATURITY SCHEDULE                    
(in $000s)  
                           
                           
                           
      Principal Balance at   Interest Rate   Maturity   Years to Years to      
Consolidated Debt     9/30/2015     Date   Maturity Maturity     Notes
                           
Corporate debt                          
                           
Citi Credit facility & Term Loan     $263,500   2.21%   1/8/2017   1.3 1.3     One twelve month extension option
                           
Exchangeable Notes1     97,925   5.53%   10/9/2018   3.1 3.1      
                           
Other debt2     6,852   3.37%   8/16/2021   6.0 6.0      
                           
Wholly Owned Construction loans - Grove                          
                           
The Grove at Pullman, WA     $13,887   2.39%   9/5/2016   0.9 0.9     Two twelve month extension option
The Grove at Slippery Rock, PA     17,738   2.34%   6/21/2016   0.7 0.7     Two twelve month extension option
The Grove at Muncie, IN     13,892   2.44%   6/21/2016   0.7 0.7     Two twelve month extension option
The Grove at Ft. Collins, CO     18,998   2.09%   7/13/2016   0.8 0.8     Two twelve month extension option
The Grove at Gainesville, FL     25,593   2.34%   3/13/2017   1.5 1.5     Sixty to one hundred  twenty days extension option
Copper Beech at Ames, IA     22,051   2.44%   5/2/2017   1.6 1.6     Two twelve month extension option
Vivo at Toledo, OH     4,377   2.34%   11/25/2017   2.2 2.2     Thirty to ninety days extension option
                           
Wholly Owned Construction loans - Copper Beech                          
                           
Statesboro, GA Phase II     $9,226   2.69%   11/1/2016   1.1 1.1      
CMU Phase II—Mount Pleasant, MI     9,072   2.69%   2/1/2017   1.4 1.4      
Auburn, AL     15,750   2.19%   2/6/2017   1.4 1.4      
                           
Sub Total3     $150,583   2.37%       1.2 1.2      
                           
Wholly Owned Mortgage loans - Grove                        
                           
The Grove at Milledgeville, GA     $15,477   6.12%   10/1/2016   1.0 1.0     Principal and interest
The Grove at Carrollton, GA     13,954   6.13%   10/11/2016   1.0 1.0     Principal and interest
The Grove at Las Cruces, NM     14,421   6.13%   10/11/2016   1.0 1.0     Principal and interest
The Grove at Denton, TX     16,420   2.34%   3/1/2017   1.4 1.4     Principal and interest, floating rate
The Grove at Asheville, NC     14,166   5.77%   4/11/2017   1.6 1.6     Principal and interest
The Grove at Ellensburg, WA     15,669   5.10%   9/1/2018   3.0 3.0     Principal and interest
The Grove at Nacogdoches, TX     16,666   5.01%   9/1/2018   3.0 3.0     Principal and interest
The Grove at Greeley, CO     14,753   4.29%   10/1/2018   3.0 3.0     Principal and interest
The Grove at Clarksville, TN     16,028   4.03%   7/1/2022   6.9 6.9     Principal and interest
The Grove at Columbia, MO     22,396   3.83%   7/1/2022   6.9 6.9     Principal and interest
The Grove at Statesboro, GA     17,895   4.01%   1/1/2023   7.4 7.4     Principal and interest
The Grove at Fayetteville, AR     14,500   5.64%   9/1/2018   3.0 3.0     Principal and interest
                           
Wholly Owned Mortgage loans - Copper Beech                          
                           
IUP Phase II - Indiana     $5,854   5.90%   10/1/2015   0.0 0.0     Principal and interest
CMU Phase I - Mount Pleasant, MI     17,911   5.47%   10/1/2015   0.0 0.0     Principal and interest
Copper Beech I - State College     4,919   5.61%   2/11/2016   0.4 0.4     Principal and interest
IUP Buy - Indiana     2,307   5.45%   6/6/2016   0.7 0.7     Principal and interest
San Marcos, TX Phase I     32,718   5.45%   6/6/2016   0.7 0.7     Principal and interest
Bloomington     10,354   6.22%   10/1/2016   1.0 1.0     Principal and interest
Allendale Phase I     22,616   5.98%   10/1/2016   1.0 1.0     Principal and interest
Columbia, MO     23,373   6.22%   10/1/2016   1.0 1.0     Principal and interest
Radford     11,807   5.99%   11/6/2016   1.1 1.1     Principal and interest
IUP Phase I - Indiana     6,500   2.15%   6/2/2017   1.7 1.7     Principal and interest
Allendale Phase II     11,485   6.27%   9/6/2017   2.0 2.0     Principal and interest
Columbia, SC Phase I     35,661   6.27%   9/6/2017   2.0 2.0     Principal and interest
Statesboro, GA Phase I     29,862   5.81%   10/6/2017   2.0 2.0     Principal and interest
Copper Beech II - State College     8,353   5.97%   8/1/2019   3.9 3.9     Principal and interest
Columbia, SC Phase II     5,837   5.41%   8/1/2020   4.9 4.9     Principal and interest
Oakwood - State College     5,502   4.99%   10/1/2020   5.1 5.1     Principal and interest
Fresno, CA     15,000   2.19%   9/5/2016   0.9 0.9     Principal and interest
                           
Sub Total3     $442,405   5.22%       2.3 2.3      
                           
Total / Weighted Average3     $961,265   3.97%       2.0 2.0      

 

1Senior unsecured exchangeable notes, maturity in October 2018.

2Includes $4,181 Line of Credit assumed as part of the Copper Beech transaction and $2,308 bond assumed as a part of the purchase of the Flagstaff, AZ property.

3Wholly owned debt reflects principal balance, excluding impact of fair value debt and purchase accounting adjustments as reflected on the consolidated balance sheet.

 

 Page 14

 

  

CAMPUS CREST COMMUNITIES      
                 
                 
OUTSTANDING DEBT AND MATURITY SCHEDULE - JOINT VENTURE    
(in $000s)                
                 
                 
                 
      Principal Balance Interest Rate Maturity Years to    
Property Ownership   9/30/2015 Date Maturity   Notes
                 
The Grove at State College, PA1 20.0%   18,619 2.24% 9/30/2015 0.0   Interest only
Copper Beech at State College, PA - Parkway Plaza 48.0%   18,500 2.15% 10/1/2018 3.0   Principal and interest
The Grove at Indiana, PA1 20.0%   17,217 2.44% 12/19/2015 0.2   Interest only
evo Centre-Ville and evo Vieux-Montreal1 47.0%   81,886 5.68% 1/13/2016 0.3   Interest only
Copper Beech at Morgantown, WV 48.0%   34,326 5.45% 6/6/2016 0.7   Principal and interest
Copper Beech at Harrisonburg, VA 48.0%   52,922 5.45% 6/6/2016 0.7   Principal and interest
evo at Cira Centre South1 30.0%   96,158 2.39% 7/25/2016 0.8   Interest only
The Grove at Louisville, KY1 30.0%   26,603 2.44% 9/6/2016 0.9   Interest only
The Grove at Greensboro, NC1 30.0%   18,428 2.29% 9/30/2018 3.0   Interest only
Copper Beech at Greenville, NC 48.0%   46,196 5.34% 9/1/2020 4.9   Principal and interest
Copper Beech at Kalamazoo, MI - Phase II 48.0%   7,742 5.68% 10/1/2020 5.0   Principal and interest
                 
Total / Weighted Average     $418,597 4.04%   1.4    
                 
Note: The Company's pro rata share of HSRE and Beaumont joint venture debt as of September 30, 2015 was $88,011. Pro rata share of Copper Beech joint venture debt as of September 30, 2015 was $76,724.
1Footnote indicates the Company is a guarantor of the loan.                

  

 Page 15

 

 

CAMPUS CREST COMMUNITIES
 
 
GROVE PORTFOLIO OVERVIEW AND OCCUPANCY
 
 

                Occupancy, as of
        Year Opened/       September 30,
Property Grouping1   Primary University Acquired Properties  Units  Beds 2015 2014 Change
                     
Wholly Owned Operating Properties - Grove                  
The Grove at Asheville, NC (A)   UNC - Asheville 2005   154 448 99.1% 99.8% (0.6%)
The Grove at Carrollton, GA (A)   University of West Georgia 2006   168 492 97.0% 93.1% 3.9%
The Grove at Las Cruces, NM (A)   New Mexico State University 2006   168 492 81.7% 81.7% 0.0%
The Grove at Milledgeville, GA (A)   Georgia College & State University 2006   168 492 96.1% 99.4% (3.3%)
The Grove at Abilene, TX (A)   Abilene Christian University 2007   192 504 90.5% 91.3% (0.8%)
The Grove at Ellensburg, WA (A)   Central Washington University 2007   192 504 86.3% 100.0% (13.7%)
The Grove at Greeley, CO (A)   University of Northern Colorado 2007   192 504 99.8% 100.0% (0.2%)
The Grove at Mobile, AL—Phase I & II2 (A)   University of South Alabama 2007/2008   384 1,008 86.3% 86.4% (0.1%)
The Grove at Nacogdoches, TX—Phase I & II2 (A)   Stephen F. Austin State Univ. 2007/2012   260 682 85.5% 83.1% 2.3%
The Grove at Cheney, WA (A)   Eastern Washington University 2008   192 512 99.6% 94.7% 4.9%
The Grove at Lubbock, TX (A)   Texas Tech University 2008   192 504 94.2% 92.5% 1.8%
The Grove at Stephenville, TX (A)   Tarleton State University 2008   192 504 100.0% 100.0% 0.0%
The Grove at Troy, AL (A)   Troy University 2008   192 514 96.5% 98.6% (2.1%)
The Grove at Waco, TX (A)   Baylor University 2008   192 504 87.3% 90.3% (3.0%)
The Grove at Murfreesboro, TN (A)   Middle Tennessee State University 2009   186 504 94.0% 99.8% (5.8%)
The Grove at San Marcos, TX (A)   Texas State University 2009   192 504 99.0% 96.4% 2.6%
The Grove at Moscow, ID (A)   University of Idaho 2009   192 504 97.2% 84.7% 12.5%
The Grove at Huntsville, TX (A)   Sam Houston State University 2010   192 504 100.0% 100.0% 0.0%
The Grove at Statesboro, GA (A)   Georgia Southern University 2010   200 536 76.9% 86.6% (9.7%)
The Grove at Ames, IA (A)   Iowa State University 2011   216 584 98.3% 100.0% (1.7%)
The Grove at Clarksville, TN (A)   Austin Peay State University 2011   208 560 71.6% 74.1% (2.5%)
The Grove at Columbia, MO (A)   University of Missouri 2011   216 632 85.3% 74.1% 11.2%
The Grove at Ft. Wayne, IN (A)   Indiana University-Purdue University Ft. Wayne 2011   204 540 71.5% 77.6% (6.1%)
The Grove at Valdosta, GA (A)   Valdosta State University 2011   216 584 91.6% 86.6% 5.0%
The Grove at Denton, TX (A)   University of North Texas 2011   216 584 98.6% 100.0% (1.4%)
The Grove at Auburn, AL (A)   Auburn University 2012   216 600 99.7% 100.0% (0.3%)
The Grove at Fayetteville, AR (A)   University of Arkansas 2012   232 632 86.2% 66.5% 19.8%
The Grove at Flagstaff, AZ (A)   Northern Arizona University 2012   216 584 99.0% 99.3% (0.3%)
The Grove at Orono, ME (A)   University of Maine 2012   188 620 97.4% 100.0% (2.6%)
The Grove at Ft. Collins, CO (A)   Colorado State University 2013   218 612 100.0% 100.0% 0.0%
The Grove at Muncie, IN (A)   Ball State University 2013   216 584 83.4% 87.3% (3.8%)
The Grove at Pullman, WA3 (A)   Washington State University 2013   216 584 99.3% 100.0% (0.8%)
The Grove at Flagstaff, AZ - Phase II2 (A)   Northern Arizona University 2013   54 192 98.4% 99.5% (1.0%)
The Grove at Gainesville, FL (B)   University of Florida 2014   256 682 99.9% 54.3% 45.6%
The Grove at Grand Forks, ND (B)   University of North Dakota 2014   224 600 67.5% 99.8% (32.3%)
The Grove at Mt. Pleasant, MI (B)   Central Michigan University 2014   224 584 68.3% 76.2% (7.9%)
The Grove at Slippery Rock, PA (B)   Slippery Rock University 2014   201 603 93.0% 85.4% 7.6%
Total - Wholly Owned Operating Properties - Grove       37 7,537 20,577 90.9% 91.7% (0.8%)

 

 

1 Groupings detailed as follows: (A) reflects the same store properties as of September 30, 2015; (B) reflects the 2014 development deliveries.

2The Grove at Flagstaff, AZ - Phase I & II are counted as two properties in the Company's property count. The Grove at Nacogdoches, TX - Phase II and The Grove at Mobile, AL—Phase II are not counted as separate assets from Phase I of each respective asset.

3 On July 14, 2013, the Company experienced a fire at this development property. As of September 30, 2015, all 584 beds are in operation.

 

 Page 16

 

 

CAMPUS CREST COMMUNITIES
 
 
COPPER BEECH PORTFOLIO OVERVIEW AND OCCUPANCY1
 
 

                    Occupancy, as of
        Year Opened/           September 30,
Property Grouping   Primary University Acquired   Properties Units Beds   2015   2014 Change
                           
Wholly Owned Operating Properties - Copper Beech                          
Copper Beech at Bloomington, IN - Colonial Crest (A)   Indiana University 1970     206 402   86.3%   77.1% 9.2%
Copper Beech at Indiana, PA - IUP I (A)   Indiana University of Pennsylvania 1971     95 239   88.3%   100.0% (11.7%)
Copper Beech at Indiana, PA - IUP II (A)   Indiana University of Pennsylvania 1973     72 172   90.1%   100.0% (9.9%)
Copper Beech at Indiana, PA - IUP Buy (A)   Indiana University of Pennsylvania 1975     43 76   85.5%   100.0% (14.5%)
Copper Beech at State College, PA - CB I (A)   Penn State University 1996     59 177   100.0%   100.0% 0.0%
Copper Beech at State College, PA - CB II (A)   Penn State University 1998     87 257   100.0%   100.0% 0.0%
Copper Beech at State College, PA - Oakwood (A)   Penn State University 2000     48 144   100.0%   100.0% 0.0%
Copper Beech at Harrisonburg, VA - Grand Duke (A)   James Madison University 2001     120 124   98.4%   100.0% (1.6%)
Copper Beech at State College, PA - Oak Hill (A)   Penn State University 2003     106 318   100.0%   100.0% 0.0%
Copper Beech at State College, PA - Northbrook Greens (A)   Penn State University 2003     166 250   99.2%   100.0% (0.8%)
Copper Beech at West Lafayette, IN – Klondike (A)   Purdue University 2003     219 486   89.5%   87.4% 2.1%
Copper Beech at West Lafayette, IN – Baywater (A)   Purdue University 2004     137 488   85.9%   70.1% 15.8%
Copper Beech at Radford, VA (A)   Radford University 2005     222 500   98.8%   100.0% (1.2%)
Copper Beech at Bloomington, IN (A)   Indiana University 2005     107 297   76.8%   71.0% 5.7%
Copper Beech at Mount Pleasant, MI - Phase I (A)   Central Michigan University 2005     204 632   63.0%   100.0% (37.0%)
Copper Beech at Bowling Green, OH - Phase I (A)   Bowling Green University 2005     128 400   100.0%   99.8% 0.2%
Copper Beech at Fresno, CA (A)   California State University at Fresno 2006     178 506   98.8%   90.1% 8.7%
Copper Beech at Allendale, MI - Phase I (A)   Grand Valley State University 2006     206 614   99.5%   100.0% (0.5%)
Copper Beech at Columbia, MO (A)   University of Missouri 2006     214 654   96.3%   89.4% 6.9%
Copper Beech at Bowling Green, OH - Phase II (A)   Bowling Green University 2007     72 216   98.6%   100.0% (1.4%)
Copper Beech at Allendale, MI - Phase II (A)   Grand Valley State University 2007     82 290   100.0%   100.0% 0.0%
Copper Beech at Columbia, SC - Phase I (A)   University of South Carolina 2007     278 824   49.3%   97.6% (48.3%)
Copper Beech at Statesboro, GA - Phase I (A)   Georgia Southern University 2007     246 754   94.4%   97.1% (2.7%)
Copper Beech at Columbia, SC - Phase II (A)   University of South Carolina 2008     72 178   52.8%   98.3% (45.5%)
Copper Beech at Auburn, AL (A)   Auburn University 2009     271 754   97.6%   92.7% 4.9%
Copper Beech at San Marcos, TX - Phase I (A)   Texas State University 2011     273 840   96.2%   88.7% 7.5%
Copper Beech at San Marcos, TX - Phase II (A)   Texas State University 2012     142 410   96.1%   88.3% 7.8%
Copper Beech at Mount Pleasant, MI - Phase II (A)   Central Michigan University 2013     119 256   98.0%   94.5% 3.5%
Copper Beech at Statesboro, GA - Phase II (A)   Georgia Southern University 2013     82 262   96.9%   98.5% (1.5%)
Copper Beech at Ames, IA (B)   Iowa State University 2014     219 636   100.0%   81.3% 18.7%
                           
Sub-Total / Weighted Average           30 4,473 12,156   90.1%   93.4% (3.2%)
                           
Joint Venture Operating Properties - Copper Beech                          
Copper Beech at State College, PA - Parkway Plaza (A)   Penn State University 1967     429 633   99.7%   98.7% 0.9%
Copper Beech at Harrisonburg, VA (A)   James Madison University 2008     414 1,218   96.1%   99.9% (3.9%)
Copper Beech at Greenville, NC (A)   East Carolina University 2008     439 1,232   96.9%   95.5% 1.4%
Copper Beech at Kalamazoo, MI - Phase II (A)   Western Michigan University 2008     115 340   74.7%   67.6% 7.1%
Copper Beech at Morgantown, WV (A)   West Virginia University 2010     335 920   98.3%   100.0% (1.7%)
                           
Total - Copper Beech Portfolio           35 6,205 16,499   91.6%   94.1% (2.5%)
                           

 

 Page 17

 

 

CAMPUS CREST COMMUNITIES
 
 
HSRE AND BEAUMONT PORTFOLIO OVERVIEW AND OCCUPANCY (cont'd)
 
 

                Occupancy, as of
        Year Opened/       September 30,
Property Grouping1 Primary University Acquired Properties Units Beds 2015 2014 Change
                     
HSRE and Beaumont Joint Venture Operating Properties              
The Grove at Indiana, PA (A)   Indiana University of Pennsylvania 2013   224 600 69.5% 65.7% 3.8%
The Grove at State College, PA (A)   Penn State University 2013   216 584 100.0% 100.0% 0.0%
The Grove at Greensboro, NC (B)   University of North Carolina at Greensboro 2014   216 584 76.2% 57.4% 18.8%
The Grove at Louisville, KY (B)   University of Louisville 2014   252 656 65.2% 61.4% 3.8%
evo at Cira Centre South (B)   University of Pennsylvania / Drexel University 2014   344 850 97.3% 46.7% 50.6%
evo Centre-Ville (B)   Concordia University / McGill University / (ÉTS) 2014   715 1,294 53.3% 8.0% 45.3%
evo Vieux-Montreal (B)   McGill University 2014   488 929 43.8% 13.0% 30.8%
                     
Total - Joint Venture Operating Properties       7 2,455 5,497 69.1% 42.5% 26.6%
                     
Total Operating Properties2         79 16,197 42,573 88.3% 92.4% (4.1%)
                     
Same Store Properties (A)                    
Wholly-Owned         62 10,886 29,628 91.0% 92.3% (1.3%)
Joint Venture         7 2,172 5,527 93.3% 93.1% 0.1%
Total - Same Store         69 13,058 35,155 91.4% 92.4% (1.1%)
                     
2014 Deliveries (B)                    
Wholly-Owned         5 1,124 3,105 86.4% 78.8% 7.6%
Joint Venture         5 2,015 4,313 64.8% 31.5% 33.3%
Total - 2014 Deliveries         10 3,139 7,418 73.9% 51.3% 22.6%
                     

 

1 Groupings detailed as follows: (A) reflects the same store properties as of June 30, 2015; (B) reflects the 2014 development deliveries.

2 The redevelopment of the 100% owned property in Toledo, OH is excluded. The Grove at Denton is included for purposes of this presentation. The Company acquired its joint venture partner's interest in the Grove at Denton on January 21, 2014. The occupancy data related to Denton is included in 2014 deliveries.

 

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CAMPUS CREST COMMUNITIES
 
 
INVESTOR INFORMATION
 
 

Executive Management          
           
David Coles Interim Chief Executive Officer        
Aaron Halfacre President and Chief Investment Officer        
John Makuch Interim Chief Financial Officer        
Scott Rochon Chief Accounting Officer        
           
Corporate Headquarters     Investor Relations    
           
2100 Rexford Road  #414     (704) 496-2571    
Charlotte, NC 28211     investor.relations@campuscrest.com    
(704) 496-2500          
           
Covering Analysts          
           
Barclays Capital Inc. Ross Smotrich   (212) 526-2306   ross.smotrich@barclays.com
Citigroup Global Markets Inc. Michael Bilerman / Nick Joseph   (212) 816-1383 / (212) 816-1909   michael.bilerman@citi.com / nicholas.joseph@citi.com
Raymond James & Associates Paul D. Puryear / Buck Horne   (727) 567-2253 / (727) 567-2561   paul.puryear@raymondjames.com / buck.horne@raymondjames.com
Sidoti & Company, LLC Jeff Lau   (212) 453-7029   jlau@sidoti.com
Bank of America Merrill Lynch Jana Galan / Jane Wong   (646) 855-3081 / (646) 855-3378   jana.galan@baml.com / jane.wong1@baml.com
Wunderlich Securities Craig Kucera   (540) 277-3366   ckucera@wundernet.com

 

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CAMPUS CREST COMMUNITIES
 

 

FORWARD - LOOKING STATEMENTS

 

This document, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Forward-looking statements in this press release include, among others, the performance of properties in occupancy and yield targets, outlook and guidance for full year 2013 FFO and the related underlying assumptions, growth and development opportunities, leasing activities, financing strategies, and development and construction projects. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company’s control that may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect the Company’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, except as otherwise required by federal securities laws, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statements, see the risk factors discussed in the Company’s most recent Annual Report on Form 10-K, as updated in the Company’s Quarterly Reports on Form 10-Q.

 

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