Exhibit 99.2

 

 

Third Quarter 2014

Supplemental Analyst Package

 

Contact:

Investor Relations

704-496-2571 

Investor.Relations@CampusCrest.com 

 

 

 

THIRD QUARTER 2014

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
Wholly Owned Property Results of Operations	7
LTM Wholly Owned Property Results of Operations	8
Same Store Wholly Owned Property Operating Expenses	9
HSRE, Beaumont and Copper Beech Joint Venture Property Results of Operations	10
Capital Structure as of September 30, 2014	11
Outstanding Debt and Maturity Schedule	12
HSRE & Beaumont Joint Venture Debt Summary	13
Copper Beech Joint Venture Debt Summary	14
Portfolio Overview and Occupancy	15 - 16
Copper Beech Portfolio Overview and Occupancy	17
Investor Information	18
Forward-Looking Statements	19

  

  

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,
	2014		2013		$ Change		% Change		2014		2013		$ Change		% Change
Total revenues	$28,309		$23,257		$5,052		21.7%		$78,010		$67,302		$10,708		15.9%
NOI	15,660		13,109		2,551		19.5%		$43,571		$37,422		6,149		16.4%
Operating income	(117,377)		6,330		(123,707)		NM		(113,279)		15,342		(128,621)		NM
Net income (loss) attributable to common stockholders1	(129,974)		3,677		(133,651)		NM		(135,414)		7,459		(142,873)		NM
Net income (loss) per share - basic and diluted	($2.01)		$0.06		($2.07)		NM		($2.09)		$0.13		($2.22)		NM
FFO2	(118,895)		14,076		(132,971)		NM		(96,156)		35,020		(131,176)		NM
FFO per share - diluted2,4	($1.84)		$0.22		($2.06)		NM		($1.49)		$0.60		($2.09)		NM
FFOA3	9,678		13,051		(3,373)		(25.8%)		28,228		31,941		(3,713)		(11.6%)
FFOA per share - diluted3,4	$0.15		$0.20		($0.05)		(25.0%)		$0.44		$0.55		($0.11)		(20.0%)
Debt to total market capitalization	50.5%		33.9%		n/a		16.6%		50.5%		33.9%		n/a		16.6%
Operating Statistics (wholly-owned)
Total RevPOB5	$530		$518		$12		2.3%		$526		$517		$9		1.7%
Average Physical Occupancy6	89.2%		91.1%		n/a		(1.9%)		89.8%		92.3%		n/a		(2.5%)

 

¹ For the three and nine months ended September 30, 2014 results include certain write-downs and impairments, primarily related to impairment of unconsolidated entities, impairments of land and predevelopment costs, effect of not exercising Copper Beech purchase option and write off of other corporate assets.

² For the three and nine months ended September 30, 2014 and the period March 18, 2013 to September 30, 2013, 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, subject to receipt of required third-party lender consents, enabled the Company to acquire a 67% ownership interest in 28 operating properties, while deferring ownership in seven 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. As of September 30, 2014, the Company held a 48% effective interest in 35 operating and two non-operating properties which are unconsolidated and a 48% interest in one consolidated operating property.

³ Includes transaction costs and the fair value adjustment of Copper Beech's debt.

⁴ Refer to page 6 for a reconciliation of FFO per share to FFOA per share.

⁵ Total revenue per occupied bed includes rental and service revenues.

⁶ Average monthly occupancy.

 

  

CAMPUS CREST COMMUNITIES
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in $000s)
		September 30,		December 31,
		2014		2013
Assets
Investment in real estate, net:
Student housing properties		$923,531		$716,285
Accumulated depreciation		(120,121)		(102,356)
Development in process		19,802		91,184
Investment in real estate, net		823,212		705,113
Investment in unconsolidated entities1		275,040		324,838
Cash and cash equivalents		18,313		32,054
Restricted cash 2		6,207		32,636
Student receivables, net		2,802		2,825
Cost and earnings in excess of construction billings		24,449		42,803
Other assets, net		46,796		42,410
Total assets		$1,196,819		$1,182,679
Liabilities and equity
Liabilities:
Mortgage and construction loans		$279,152		$205,531
Line of credit and other debt		301,122		207,952
Accounts payable and accrued expenses		69,902		62,448
Construction billings in excess of cost and earnings		8		600
Other liabilities		18,768		11,167
Total liabilities		668,952		487,698
Equity:
Preferred stock		$61		$61
Common stock		648		645
Additional common and preferred paid-in capital		776,605		773,896
Accumulated deficit and distributions		(256,377)		(84,143)
Accumulated other comprehensive loss		(1,451)		(71)
Total stockholders' equity		519,486		690,388
Noncontrolling interests		8,381		4,593
Total equity		527,867		694,981
Total liabilities and equity		$1,196,819		$1,182,679

 

¹ As of December 31, 2013, includes the Company’s investment in Copper Beech equating to a 67% effective ownership interest in 30 properties, of which 28 are operating and two are non-operating properties. 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. As of September 30, 2014, the Company held a 48% effective interest in 35 operating and two non-operating properties which are unconsolidated and a 48% interest in one consolidated operating property.

² As of September 30, 2014 and December 31, 2013, includes approximately $0 and $28,200, respectively, of cash held in escrow from the sale of four wholly-owned Grove-branded student housing properties on December 27, 2013.

 

  

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,
		2014		2013		$ Change		2014		2013		$ Change
Revenues:
Student housing rental		$26,985		$22,165		$4,820		$74,256		$64,118		$10,138
Student housing services		1,043		867		176		3,043		2,645		398
Property management services		281		225		56		711		539		172
Total revenues		28,309		23,257		5,052		78,010		67,302		10,708
Operating expenses:
Student housing operations		12,368		9,923		2,445		33,728		29,341		4,387
General and administrative1		4,043		2,424		1,619		11,198		8,076		3,122
Impairment of land & predevelopment costs		29,790		-		29,790		29,790		-		29,790
Write-off of corporate other assets		7,765		-		7,765		7,765		-		7,765
Transaction costs2		286		247		39		2,331		835		1,496
Ground leases		120		54		66		357		162		195
Depreciation and amortization		7,035		5,581		1,454		21,269		17,154		4,115
Total operating expenses		61,407		18,229		43,178		106,438		55,568		50,870
Equity in earnings (loss) of unconsolidated entities3,4		635		1,302		(667)		63		3,608		(3,545)
Impairment of unconsolidated entities		(50,866)		-		(50,866)		(50,866)		-		(50,866)
Effect of not exercising Copper Beech purchase option		(34,048)		-		(34,048)		(34,048)		-		(34,048)
Operating income		(117,377)		6,330		(123,707)		(113,279)		15,342		(128,621)
Nonoperating income (expense):
Interest expense, net		(3,639)		(3,091)		(548)		(9,965)		(8,764)		(1,201)
Other income (expense)5		(41)		696		(737)		129		1,421		(1,292)
Total nonoperating expense, net		(3,680)		(2,395)		(1,285)		(9,836)		(7,343)		(2,493)
Net income before income tax benefit (expense)		(121,057)		3,935		(124,992)		(123,115)		7,999		(131,114)
Income tax benefit (expense)		(1,131)		(40)		(1,091)		(731)		306		(1,037)
Income from continuing operations		(122,188)		3,895		(126,083)		(123,846)		8,305		(132,151)
Income (loss) from discontinued operations		(5,506)		958		(6,464)		(3,191)		2,655		(5,846)
Net income (loss)		(127,694)		4,853		(132,547)		(127,037)		10,960		(137,997)
Dividends on preferred stock		3,050		1,150		1,900		9,150		3,450		5,700
Net income (loss) attributable to noncontrolling interests		(770)		26		(796)		(773)		51		(824)
Net income (loss) attributable to common stockholders		($129,974)		$3,677		($133,651)		($135,414)		$7,459		($142,873)
Per share data - basic and diluted:
Income (loss) from continuing operations attributable to common stockholders		($1.92)		$0.05				($2.04)		$0.08
Income (loss) from discontinued operations attributable to common stockholders		($0.09)		$0.01				($0.05)		$0.05
Net income (loss) per share attributable to common stockholders		($2.01)		$0.06				($2.09)		$0.13
Weighted average common shares outstanding:
Basic		64,770		64,518				64,650		58,461
Diluted		64,770		64,953				64,650		58,896

 

¹ For three and nine months ended September 30, 2014, includes $720 of severance costs.

² For the three and nine months ended September 30, 2014, includes $286 and $2,331, respectively, of transaction costs related to Copper Beech, the Montreal investments and other transaction costs. Additionally, for the three and nine months ended September 30, 2013, includes $247 and $835, respectively, of transaction costs related to Copper Beech.

³ For the three and nine months ended September 30, 2014 and the period from March 18, 2013 to September 30, 2013, includes results from the Company’s investment in Copper Beech. The Company made its initial investment 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, subject to receipt of required third-party lender consents, enabled the Company to acquire a 67% ownership interest in 28 operating properties, while deferring ownership in seven 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. As of September 30, 2014, the Company held a 48% effective interest in 35 operating and two non-operating properties which are unconsolidated and a 48% interest in one consolidated operating property.

⁴ For the three and nine months ended September 30, 2014, includes $1,539 and $5,058, respectively, of fair value adjustment related to Copper Beech's debt. For the three and nine months ended September 30, 2013, includes $1,220 and $2,165, respectively, of fair value adjustment related to Copper Beech's debt.

⁵ For the three and nine months ended September 30, 2013, includes interest income from the 8.5%, $31,700 loan made to existing investors in Copper Beech on March 18, 2013. In conjunction with the September 30, 2013 amendment to the purchase and sale agreement, the $31,700 loan was repaid by Copper Beech.

  

  

CAMPUS CREST COMMUNITIES
RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS TO FUNDS FROM OPERATIONS ("FFO"), FUNDS FROM OPERATIONS ADJUSTED ("FFOA") & NET OPERATING INCOME ("NOI") (unaudited)
(in $000s, except per share data)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2014		2013		$ Change		2014		2013		$ Change
Net income (loss) attributable to common stockholders	($129,974)		$3,677		($133,651)		($135,414)		$7,459		($142,873)
Net income (loss) attributable to noncontrolling interests	(770)		26		(796)		(773)		51		(824)
Real estate related depreciation and amortization	6,590		5,341		1,249		20,175		16,523		3,652
Real estate related depreciation and amortization - discontinued operations	-		545		(545)		-		2,070		(2,070)
Real estate related depreciation and amortization - unconsolidated entities	5,259		4,487		772		19,856		8,917		10,939
FFO available to common shares and OP units1, 2, 3	(118,895)		14,076		(132,971)		(96,156)		35,020		(131,176)
Elimination of the following:
Transaction costs	286		1,153		(867)		2,331		1,741		590
Impairment of land & predevelopment costs	29,790		-		29,790		29,790		-		29,790
Write off of corporate other assets	7,765		-		7,765		7,765		-		7,765
Severance	720		-		720		720		-		720
Change in valuation allowance for deferred tax asset	1,131		-		1,131		731		-		731
Discontinued operations	5,506		(958)		6,464		3,191		(2,655)		5,846
Impairment of unconsolidated entities	50,866		-		50,866		50,866		-		50,866
Effect of not exercising Copper Beech purchase option	34,048		-		34,048		34,048		-		34,048
FV adjustment of CB debt	(1,539)		(1,220)		(319)		(5,058)		(2,165)		(2,893)
Funds from operations adjusted (FFOA) available to common
shares and OP units	$9,678		$13,051		($3,373)		$28,228		$31,941		($3,713)
FFO per share - diluted1, 2, 3	($1.84)		$0.22		($2.06)		($1.49)		$0.60		($2.09)
FFOA per share - diluted	$0.15		$0.20		($0.05)		$0.44		$0.55		($0.11)
Weighted average common shares and OP units outstanding - basic/dilutive4	64,770		64,518				64,650		58,461
	Three Months Ended September 30,						Nine Months Ended September 30,
	20141		20131				20141		20131
Net income (Loss) attributable to common stockholders	($129,974)		$3,677				($135,414)		$7,459
Net income (Loss) attributable to noncontrolling interests	(770)		26				(773)		51
Preferred stock dividends	3,050		1,150				9,150		3,450
Income tax (benefit) expense	1,131		40				731		(306)
Other (income) expense	41		(696)				(129)		(1,348)
(Income) loss on discontinued operations	5,506		(958)				3,191		(2,655)
Interest expense	3,639		3,091				9,965		8,764
Equity in earnings of unconsolidated entities	(635)		(1,302)				(63)		(3,608)
Depreciation and amortization	7,035		5,581				21,269		17,154
Ground lease expense	120		54				357		162
General and administrative expense5	4,043		2,424				11,198		8,076
Impairment of unconsolidated entities	50,866		-				50,866		-
Effect of not exercising Copper Beech purchase option	34,048		-				34,048		-
Impairment of land & predevelopment costs	29,790		-				29,790		-
Write-off of corporate other assets	7,765		-				7,765		-
Transaction costs	286		247				2,331		835
Property management services	(281)		(225)				(711)		(539)
Total NOI	$15,660		$13,109				$43,571		$37,495
Same store properties NOI6	$10,525		$11,424				$33,461		$35,412
New properties NOI6,7	$4,259		$1,224				$7,743		$1,255
The Grove at Pullman & Toledo NOI8	$876		$461				$2,367		$755

 

¹ For the three and nine months ended September 30, 2014 and the period March 18, 2013 to June 30, 2013, includes results from the Company’s investment in Copper Beech. The Company made its initial investment 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, subject to receipt of required third-party lender consents, enabled the Company to acquire a 67% ownership interest in 28 operating properties, while deferring ownership in seven 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. As of September 30, 2014, the Company held a 48% effective interest in 35 operating and two non-operating properties which are unconsolidated and a 48% interest in one consolidated operating property.

² For the three and nine months ended September 30, 2014, includes $286 and $2,331, respectively, of transaction costs related to Copper Beech, the Montreal investments and other transaction costs. Additionally, for the three and nine months ended September 30, 2013, includes $247 and $835, respectively, of transaction costs related to Copper Beech.

³ For the three and nine months ended September 30, 2014, includes $1,539 and $5,058, respectively, of fair value adjustment related to Copper Beech's debt. For the three and nine months ended September 30, 2013, includes $1,220 and $2,165, respectively, of fair value adjustment related to Copper Beech's debt.

⁴ For the three and nine months ended September 30, 2014, the basic shares were used to calculate FFO and FFOA as the dilutive shares would have been anti-dilutive. For the three and nine months ended September 30, 2013, the dilutive shares were used to calculate FFO and FFOA.

⁵For three and nine months ended September 30, 2014, includes $720 of severance costs.

⁶ "Same store" properties are our wholly-owned operating properties acquired or placed in-service prior to the beginning of the earliest period presented and owned by us and remaining in service through the end of the latest period presented or period being analyzed. "New properties" are our wholly-owned operating properties that we acquired or placed in service after the beginning of the earliest period presented or period being analyzed. 

⁷ Includes NOI contribution from Copper Beech at Ames. This is a consolidated joint venture.

⁸ 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.

  

  

CAMPUS CREST COMMUNITIES
WHOLLY OWNED PROPERTY RESULTS OF OPERATIONS (unaudited)
(in $000s, except bed data)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2014		2013		Change		% Change		2014		2013		Change		% Change
Same store properties (Number of properties)	28		28						28		28
Revenue per occupied bed
Rental revenue per occupied bed per month	$498		$497		$1		0.2%		$497		$496		$1		0.2%
Services revenue per occupied bed per month	21		19		2		10.5%		21		20		1		5.0%
Total revenue per occupied bed	$519		$516		$3		0.6%		$518		$516		$2		0.4%
Average number of owned beds	14,920		14,920						14,920		14,920
Average physical occupancy	90.0%		91.5%				(1.5%)		90.2%		92.5%				(2.3%)
Total revenue	$20,890		$21,118		($228)		(1.1%)		$62,667		$64,110		($1,443)		(2.3%)
Property operating expenses	10,365		9,694		671		6.9%		29,206		28,698		508		1.8%
Net operating income	$10,525		$11,424		($899)		(7.9%)		$33,461		$35,412		($1,951)		(5.5%)
Operating margin1	50.4%		54.1%				(3.7%)		53.4%		55.2%				(1.8%)
New properties (Number of properties)2, 3, 4, 5	7		2		5				7		2		5
Revenue per occupied bed
Rental revenue per occupied bed per month	$563		$552		$11		1.9%		$565		$552		$13		2.2%
Services revenue per occupied bed per month	17		$6		11		66.7%		18		6		12		68.6%
Total revenue per occupied bed	$580		$558		$22		3.8%		$583		$558		$25		4.3%
Average number of owned beds	3,618		925						2,521		308
Average physical occupancy	86.0%		85.7%				0.3%		87.2%		85.7%				1.5%
Total revenue	$5,408		$1,327		$4,081		75.5%		$11,528		$1,327		$10,201		88.5%
Property operating expenses	1,149		103		1,046		91.0%		3,785		72		3,713		98.1%
Net operating income	$4,259		$1,224		$3,035		71.3%		$7,743		$1,255		$6,488		83.8%
Operating margin1	78.8%		92.2%				(13.4%)		67.2%		94.6%				(27.4%)
ALL PROPERTIES (Number of properties)	35		30		5				35		30		5
Revenue per occupied bed
Rental revenue per occupied bed per month	$510		$500		$10		2.0%		$506		$497		$9		1.8%
Services revenue per occupied bed per month	20		18		2		11.1%		20		20		0		0.0%
Total revenue per occupied bed	$530		$518		$12		2.3%		$526		$517		$9		1.7%
Average number of owned beds	18,538		15,845						17,441		15,228
Average physical occupancy	89.2%		91.1%				(1.9%)		89.8%		92.3%				(2.5%)
Total revenue	$26,298		$22,445		$3,853		17.2%		$74,195		$65,437		$8,758		13.4%
Property operating expenses	11,514		9,797		1,717		17.5%		32,991		28,770		4,221		14.7%
Net operating income	$14,784		$12,648		$2,136		16.9%		$41,204		$36,667		$4,537		12.4%
Operating margin1	56.2%		56.4%				(0.2%)		55.5%		56.0%				(0.5%)
The Grove at Pullman & Toledo NOI6	$876		$461						$2,367		$755

  

¹ Operating margin is calculated by dividing NOI for the period by total student housing rental and services revenues for the period.

² For the three and nine months ended September 30, 2014, includes financial results for the 2013 wholly-owned deliveries (The Grove at Ft. Collins, The Grove at Muncie, and The Grove at Flagstaff - Phase II). The Grove at Flagstaff - Phase II is not included as an additional property, but increases the number of beds. Also includes financial results for The Grove at Denton. For the three months ended September 30, 2014 includes financial results for the 2014 wholly-owned deliveries (The Grove at Gainesville, The Grove at Grand Forks, The Grove at Slippery Rock and The Grove at Mt. Pleasant).

³ For the three and nine months ended September 30, 2014, excludes financial results from The Grove at Pullman, WA. On July 14, 2013, the Company experienced a fire at this development. The Company reached a resolution with its insurance provider and while no assurances can be given, after taking into account its existing insurance coverage, it believes that the damages sustained as a result of this fire will not have a material adverse effect on its financial position or results of operations. As of September 2014, 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.

⁴ For the three and nine months ended September 30, 2014 and 2013, excludes financial results from the Toledo, OH redevelopment the Company acquired on March 15, 2013. The Company has begun a phased redevelopment of the property and has placed a portion of the project in service in August 2014.

⁵ For the nine months ended September 30, 2014, includes a partial period for The Grove at Denton; the Company acquired its joint venture partner's interest in this property on January 21, 2014.

⁶ 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.

  

  

CAMPUS CREST COMMUNITIES
LTM WHOLLY OWNED PROPERTY RESULTS OF OPERATIONS (unaudited)
(in $000s, except bed data)
	Three Months Ended										Total/Weighted Average
	September 30, 2013		December 31, 2013		March 31, 2014		June 30, 2014		September 30, 2014		Last Twelve Months
Same store properties (Number of properties)	28		28		28		28		28		28
Revenue per occupied bed
Rental revenue per occupied bed per month	$497		$501		$498		$495		$498		$498
Services revenue per occupied bed per month	19		20		20		21		21		20
Total revenue per occupied bed	$516		$521		$518		$516		$519		$518
Average number of owned beds	14,920		14,920		14,920		14,920		14,920		14,920
Average physical occupancy	91.5%		92.4%		90.5%		90.1%		90.0%		90.8%
Total revenue	$21,118		$21,551		$20,980		$20,797		$20,890		$84,218
Property operating expenses	9,694		10,330		9,436		9,404		10,365		39,535
Net operating income	$11,424		$11,221		$11,544		$11,393		$10,525		$44,683
Operating margin1	54.1%		52.1%		55.0%		54.8%		50.4%		53.1%
New properties (Number of properties)2, 3, 4	2		2		3		3		7		NA
Revenue per occupied bed
Rental revenue per occupied bed per month	$547		$572		$567		$564		$563		$565
Services revenue per occupied bed per month	10		30		19		19		17		20
Total revenue per occupied bed	$557		$602		$586		$583		$580		$585
Average number of owned beds	925		1,388		1,846		1,972		3,618		2,206
Average physical occupancy	85.7%		87.4%		87.5%		89.3%		86.0%		87.3%
Total revenue	$1,343		$2,190		$2,839		$3,080		$5,408		$13,517
Property operating expenses	166		659		1,147		1,310		1,149		4,265
Net operating income	$1,177		$1,531		$1,692		$1,770		$4,259		$9,252
Operating margin1	87.6%		69.9%		59.6%		57.5%		78.8%		68.4%
ALL PROPERTIES (Number of properties)	30		30		31		31		35		NA
Revenue per occupied bed
Rental revenue per occupied bed per month	$499		$507		$505		$503		$510		$506
Services revenue per occupied bed per month	19		21		20		21		20		20
Total revenue per occupied bed	$518		$528		$525		$524		$530		$526
Average number of owned beds	15,845		16,308		16,766		16,892		18,538		17,126
Average physical occupancy	91.1%		92.0%		90.2%		90.0%		89.2%		90.3%
Total revenue	$22,461		$23,741		$23,819		$23,877		$26,298		$97,735
Property operating expenses	9,860		10,989		10,583		10,714		11,514		43,800
Net operating income	$12,601		$12,752		$13,236		$13,163		$14,784		$53,935
Operating margin1	56.1%		53.7%		55.6%		55.1%		56.2%		55.2%
The Grove at Pullman & Toledo NOI6	$506		$764		$759		$753		$876		$3,152

 

¹ Operating margin is calculated by dividing NOI for the period by total student housing rental and services revenues for the period.

² For the three months ended September 30, 2013, December 31, 2013, March 31, 2014, June 30, 2014, and September 30, 2014 includes financial results for the 2013 wholly-owned deliveries (The Grove at Ft. Collins, The Grove at Muncie, and The Grove at Flagstaff - Phase II). The Grove at Flagstaff - Phase II is not included as an additional property, but increases the number of beds. For the three months ended March 31, 2014, June 30, 2014, and September 30, 2014 includes financial results for The Grove at Denton. For the three months ended September 30, 2014 includes financial results for the 2014 wholly-owned deliveries (The Grove at Gainesville, The Grove at Grand Forks, The Grove at Slippery Rock and The Grove at Mt. Pleasant). 

³ For the three months ended September 30, 2013, December 31, 2013, March 31, 2014, June 30, 2014, and September 30, 2014 excludes financial results from the The Grove at Pullman, WA. On July 14, 2013, the Company experienced a fire at this development. The Company reached a resolution with its insurance provider and while no assurances can be given, after taking into account its existing insurance coverage, it believes that the damages sustained as a result of this fire will not have a material adverse effect on its financial position or results of operations. As of September 2014, 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. 

⁴ For the three months ended September 30, 2013, December 31, 2013, March 31, 2014, June 30, 2014, and September 30, 2014, excludes financial results from the Toledo, OH redevelopment the Company acquired on March 15, 2013. The Company has begun a phased redevelopment of the property and has placed a portion of the project in service in August 2014. 

⁵ For the three months ended March 31, 2014, includes a partial period for The Grove at Denton; the Company acquired its joint venture partner's interest in this property on January 21, 2014.

⁶ For the three months ended September 30, 2013, December 31, 2013, March 31, 2014, June 30, 2014, and September 30, 2014 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, WA. 

 

  

CAMPUS CREST COMMUNITIES
SAME STORE WHOLLY OWNED OPERATING EXPENSES (unaudited)
(in $000s, except bed and property data)
		Three Months Ended September 30, 2014							Three Months Ended September 30, 2013						Y-o-Y Total Change
		Total		% of Total		Per Bed/Month			Total		% of Total		Per Bed/Month		$		%
Payroll		$2,244		21.6%		$50			$2,574		26.5%		$57		($330)		(12.8%)
Marketing		$494		4.8%		$11			$336		3.5%		$7		158		47.2%
Office, Administration & Other1		$1,943		18.7%		$43			$1,144		11.8%		$26		799		69.8%
Utilites		$2,938		28.3%		$66			$3,010		31.0%		$67		(72)		(2.4%)
Repairs and Maintenance		$734		7.1%		$16			$785		8.1%		$18		(51)		(6.5%)
Taxes and Insurance		$2,012		19.4%		$45			$1,846		19.0%		$41		166		9.0%
Total		$10,365		100.0%		$231			$9,694		100.0%		$217		$670		6.9%
Same Store
Wholly Owned Beds		14,920							14,920
Wholly Owned Properties		28							28
		Nine Months Ended September 30, 2014							Nine Months Ended September 30, 2013						Y-o-Y Total Change
		Total		% of Total		Per Bed/Month			Total		% of Total		Per Bed/Month		$		%
Payroll		$6,501		22.3%		$73			$6,814		23.7%		$76		($313)		(4.6%)
Marketing		$1,245		4.3%		$14			$1,046		3.6%		$12		199		19.1%
Office, Administration & Other		$3,574		12.2%		$40			$3,244		11.3%		$36		330		10.2%
Utilites		$9,148		31.3%		$102			$9,154		31.9%		$102		(6)		(0.1%)
Repairs and Maintenance		$2,544		8.7%		$28			$2,676		9.3%		$30		(132)		(4.9%)
Taxes and Insurance		$6,194		21.2%		$69			$5,765		20.1%		$64		429		7.4%
Total		$29,206		100.0%		$326			$28,698		100.0%		$320		$507		1.8%
Same Store
Wholly Owned Beds		14,920							14,920
Wholly Owned Properties		28							28

 

¹ Includes bad debt expense of $1,500 and $609 for three months ended September 30, 2014 and September 30, 2013 respectively.  

 

 

CAMPUS CREST COMMUNITIES
HSRE, BEAUMONT AND COPPER BEECH JOINT VENTURE PROPERTY RESULTS OF OPERATIONS (unaudited)
(in $000s, except per bed data)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2014		2013		Change		% Change		2014		2013		Change		% Change
HSRE AND BEAUMONT
Same store properties (Number of properties)1	6		6						6		6
Revenue per occupied bed
Rental revenue per occupied bed per month	$455		$462		($7)		(1.5%)		$456		$469		($13)		(2.8%)
Services revenue per occupied bed per month	22		19		3		15.8%		20		21		(1)		(4.8%)
Total revenue per occupied bed	$477		$481		($4)		(0.8%)		$476		$490		($14)		(2.9%)
Average number of owned beds	3,364		3,364						3,364		3,364
Average physical occupancy	79.7%		79.1%				0.6%		80.1%		78.6%				1.5%
Total revenue	$3,834		$3,841		($7)		(0.2%)		$11,542		$11,667		($125)		(1.1%)
Property operating expenses	2,182		2,197		(15)		(0.7%)		6,421		6,473		(52)		(0.8%)
Net operating income	$1,652		$1,644		$8		0.5%		$5,121		$5,194		($73)		(1.4%)
Operating margin2	43.1%		42.8%				0.3%		44.4%		44.5%				(0.1%)
ALL PROPERTIES (Number of properties)1,3	14		9						14		9
Revenue per occupied bed
Rental revenue per occupied bed per month	$540		$485		$55		11.3%		$522		$477		$45		9.4%
Services revenue per occupied bed per month	21		$19		2		10.5%		20		$21		(1)		(4.8%)
Total revenue per occupied bed	$561		$504		$57		11.3%		$542		$498		$44		8.8%
Average number of owned beds	7,282		4,553		2,729		59.9%		5,859		3,760		2,099		55.8%
Average physical occupancy	66.8%		79.1%				(12.3%)		73.0%		78.6%				(5.6%)
Total revenue	$8,227		$5,446		$2,781		51.1%		$20,901		$13,275		$7,626		57.4%
Property operating expenses	5,714		2,524		3,190		126.4%		12,770		6,801		5,969		87.8%
Net operating income	$2,513		$2,922		($409)		(14.0%)		$8,131		$6,474		$1,657		25.6%
Operating margin2	30.5%		53.7%				(23.2%)		38.9%		48.8%				(9.9%)
Preferred investments4, 5	$7,322		$11,827		($4,505)				$7,322		$11,827		($4,505)
COPPER BEECH
ALL PROPERTIES (Number of properties)6, 7, 8	36		35		1				36		35		1
Revenue per occupied bed
Rental revenue per occupied bed per month	$466		$459		$7		1.5%		$463		$448		$15		3.3%
Services revenue per occupied bed per month	52		41		11		28.4%		37		40		(3)		(7.5%)
Total revenue per occupied bed	$518		$500		$18		3.7%		$500		$488		$12		2.5%
Average number of owned beds	17,071		16,647						16,786		16,647
Average physical occupancy	91.1%		90.1%				1.0%		90.4%		92.3%				(1.9%)
Total revenue	$24,133		$22,499		$1,634		7.3%		$68,340		$49,400		$18,940		38.3%
Property operating expenses	9,248		9,684		(436)		(4.5%)		26,729		19,050		7,679		40.3%
Net operating income	$14,885		$12,815		$2,070		16.2%		$41,611		$30,350		$11,261		37.1%
Operating margin2	61.7%		57.0%				4.7%		60.9%		61.4%				(0.5%)

 

¹ For the three and nine months ended September 30, 2013, excludes The Grove at Denton; the Company acquired its joint venture partner's interest in this property on January 21, 2014.

² Operating 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.

³ For the three and nine months ended September 30, 2014, includes financial results for the 2013 joint venture deliveries (The Grove at Indiana, The Grove at Norman, and The Grove at State College) as well as the 2014 joint venture deliveries (The Grove at Greensboro, The Grove at Louisville, evo at Cira Centre South, evo à Square Victoria and evo à Sherbrooke).

⁴ As of September 30, 2014, the Company held preferred investment in The Grove at Indiana, The Grove at Greensboro and The Grove at Louisville of approximately $7,322. This preferred interest entitles the Company to a 9.0% return on the investment but otherwise does not change its effective ownership interest in these properties. 

⁵ As of September 30, 2013, the Company held preferred investment in The Grove at San Angelo, The Grove at Conway and The Grove at Indiana of approximately $11,827. 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. In January 2014, the Company amended and restated the HSRE-Campus Crest I, LLC operating agreement, which related to The Grove at San Angelo and The Grove at Conway, which had the effect of exchanging its Class B member preferred interests for limited partnership units, effectively increasing its equity investment in the joint venture to 63.9% from 49.9%. In the event of a sale, the partners are to share equally in the net proceeds. There were no other material changes to the agreement. 

⁶ For the three months ended September 30, 2014, results reflect operating results for the 36 operating properties. Results include Copper Beech at Ames, which is the only Copper Beech property included in our consolidated results.

⁷ For nine months ended September 30, 2013, includes 91 days of results from the Company’s initial investment in Copper Beech on March 18, 2013, which equates to an effective 29% ownership interest in 33 operating properties.

⁸ 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, subject to receipt of required third-party lender consents, enabled the Company to acquire a 67% ownership interest in 28 operating properties, while deferring ownership in seven 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. As of September 30, 2014, the Company held a 48% effective interest in 35 operating and two non-operating properties which are unconsolidated and a 48% interest in one consolidated operating property.

 

  

CAMPUS CREST COMMUNITIES
CAPITAL STRUCTURE AS OF SEPTEMBER 30, 2014
(in $000s, except per share data)

 

Closing common stock price at September 30, 2014				$6.40
Common stock				64,108
Operating partnership units				434
Restricted stock				671
Total shares and units outstanding				65,213
Total equity market value				$417,366
Total preferred equity outstanding				152,500
Total consolidated debt outstanding				580,274
Total market capitalization				$1,150,140
Debt to total market capitalization				50.5%
Debt to gross assets1				44.1%
Total number of unencumbered wholly owned operating properties				19

 

				Weighted		Average
	Principal	% of Total		Average		Years to
Consolidated Debt 2, 3	Outstanding	Principal Outstanding		Interest Rate		Maturity
Fixed rate mortgage loans	163,909	28.2%		4.95%		4.7
Variable rate mortgage loan	16,677	2.9%		2.31%		2.4
Construction loans	98,566	17.0%		2.27%		1.5
Variable rate credit facility	201,000	34.6%		2.35%		2.3
Exchangeable Notes	97,244	16.8%		5.53%		4.0
Other debt	2,878	0.5%		4.92%		14.4
Total/Weighted Average	$580,274	100.0%		3.62%		3.2

 

 

¹ Gross assets is defined as total assets plus accumulated depreciation, as reported in the Company's September 30, 2014 consolidated balance sheet.

² Excludes $251,850 of debt associated with HSRE joint ventures and $77,993 associated with Beaumont joint ventures. See page 16 for this debt. The Company is the guarantor of these loans.

³ Excludes debt associated with the Company’s investment in Copper Beech. See page 17 for this debt.

 

 

CAMPUS CREST COMMUNITIES

OUTSTANDING DEBT AND MATURITY SCHEDULE

(in $000s)

 

			Principal Balance at		Interest Rate		Maturity		Years to
Consolidated Debt			9/30/2014				Date		Maturity			Notes
Credit facility			$201,000		2.35%		1/8/2017		2.3
Exchangeable notes1			97,244		5.53%		10/9/2018		4.1
Other debt
Microsoft 365 Capital Lease			570		4.62%		4/30/2017		2.6			Miscellaneous debt
Flagstaff Municiple Bond			2,308		5.00%		10/31/2031		17.3			Miscellaneous debt
Sub Total / Weighted Average			$2,878		4.92%				14.4
Construction loans
The Grove at Ft. Collins			19,073		2.06%		7/13/2015		0.8			Two twelve month extension options
The Grove at Muncie			13,892		2.41%		7/3/2015		0.8			Two twelve month extension options
The Grove at Pullman			10,866		2.36%		9/5/2015		0.9			Two twelve month extension options
The Grove at Slippery Rock			11,690		2.31%		6/21/2016		1.8			Two twelve month extension options
The Grove at Grand Forks			12,457		2.16%		2/5/2017		2.4			One eighteen month extension option
The Grove at Gainesville			16,225		2.31%		3/13/2017		2.5			Two twelve month extension options
Copper Beech at Ames, IA			14,363		2.40%		5/2/2017		2.6			Two twelve month extension options
Sub Total / Weighted Average			$98,566		2.27%				0.8
Mortgage loans
The Grove at Milledgeville			$15,694		6.12%		10/1/2016		2.0			Principal and interest
The Grove at Las Cruces			14,623		6.13%		10/11/2016		2.1			Principal and interest
The Grove at Carrollton			14,149		6.13%		10/11/2016		2.1			Principal and interest
The Grove at Denton			16,677		2.31%		3/1/2017		2.5			Principal and interest, floating rate
The Grove at Asheville			14,355		5.77%		4/11/2017		2.6			Principal and interest
The Grove at Nacogdoches			16,919		5.01%		9/1/2018		4.0			Principal and interest
The Grove at Ellensburg			15,903		5.10%		9/1/2018		4.0			Principal and interest
The Grove at Greeley			15,009		4.29%		10/1/2018		4.1			Principal and interest
The Grove at Columbia			22,851		3.83%		7/1/2022		7.9			Principal and interest
The Grove at Clarksville			16,307		4.03%		7/1/2022		7.9			Principal and interest
The Grove at Statesboro			18,100		4.01%		1/1/2023		8.4			Interest only until 1/2015
Sub Total / Weighted Average			$180,587		4.71%				4.5
Total / Weighted Average			$580,274		3.62%				3.1

 

¹ Face rate on note is 4.75%.

² Excludes principal amortization and extension options.

 

 

CAMPUS CREST COMMUNITIES
HSRE & BEAUMONT JOINT VENTURE DEBT SUMMARY
(in $000s)

 

			Principal Balance	Interest Rate	Maturity	Years to
Property	Ownership		9/30/2014		Date	Maturity		Notes
The Grove at Fayetteville	10.0%		$                       19,078	2.90%	12/21/2014	0.2		Interest only
The Grove at Stillwater	10.0%		13,325	2.90%	12/20/2014	0.2		Interest only
The Grove at Laramie	10.0%		17,211	2.80%	1/5/2015	0.3		Interest only
The Grove at Lawrence	63.9%		11,492	2.66%	2/9/2015	0.4		Interest only
The Grove at San Angelo	63.9%		11,166	2.66%	2/9/2015	0.4		Interest only
The Grove at Conway	63.9%		9,827	2.66%	2/9/2015	0.4		Interest only
The Grove at Norman	20.0%		17,871	2.80%	5/8/2015	0.6		Interest only
The Grove at State College	20.0%		18,619	2.20%	9/30/2015	1.0		Interest only
The Grove at Indiana	20.0%		17,217	2.40%	12/19/2015	1.2		Interest only
evo à Square Victoria and evo à Sherbrooke1	35.0%		77,993	6.38%	1/13/2016	1.3		Interest only
evo at Cira Centre South	30.0%		81,115	2.35%	7/25/2016	1.8		Interest only
The Grove at Louisville	30.0%		19,357	2.40%	9/6/2016	1.9		Interest only
The Grove at Greensboro	30.0%		15,572	2.25%	9/30/2018	4.0		Interest only
Total / Weighted Average			$329,843	3.43%		1.3

 

Note: The Company's pro rata share of HSRE and Beaumont joint venture debt as of June 30, 2014 was $98,571.

¹ In January 2014, the joint venture repaid the bridge loan with a C$112,000 development loan for both evo à Square Victoria and evo à Sherbrooke.

 

 

CAMPUS CREST COMMUNITIES
COPPER BEECH JOINT VENTURE DEBT SUMMARY
(in $000s)

	Effective		Principal Balance	Interest Rate	Maturity	Years to
Property	Ownership1		9/30/2014		Date	Maturity		Notes
Unconsolidated Properties: 48% Effective Ownership Interest
Copper Beech at West Lafayette, IN – Baywater2	48.0%		$13,952	5.2%	10/11/2014	0.0		Principal and interest
Copper Beech at Statesboro, GA - Phase II2	48.0%		9,703	2.7%	11/1/2014	0.1		Principal and interest
Copper Beech at Mount Pleasant, MI - Phase II	48.0%		10,130	2.7%	2/1/2015	0.3		Principal and interest
Copper Beech at State College, PA - Parkway Plaza	48.0%		18,375	5.2%	10/1/2015	1.0		Principal and interest
Copper Beech at Indiana, PA - IUP II	48.0%		5,939	5.9%	10/1/2015	1.0		Principal and interest
Copper Beech at Mount Pleasant, MI - Phase I	48.0%		18,266	5.5%	10/1/2015	1.0		Principal and interest
Copper Beech at Bowling Green, OH - Phase I	48.0%		12,318	5.6%	10/1/2015	1.0		Principal and interest
Copper Beech at State College, PA - CB I	48.0%		4,998	5.6%	2/11/2016	1.4		Principal and interest
Copper Beech at Indiana, PA - IUP Buy	48.0%		2,345	5.5%	6/6/2016	1.7		Principal and interest
Copper Beech at Morgantown, WV	48.0%		34,885	5.5%	6/6/2016	1.7		Principal and interest
Copper Beech at Harrisonburg, VA	48.0%		53,785	5.5%	6/6/2016	1.7		Principal and interest
Copper Beech at San Marcos, TX - Phase I	48.0%		33,251	5.5%	6/6/2016	1.7		Principal and interest
Copper Beech at Bloomington, IN	48.0%		10,496	6.2%	10/1/2016	2.0		Principal and interest
Copper Beech at Allendale, MI - Phase I	48.0%		22,942	6.0%	10/1/2016	2.0		Principal and interest
Copper Beech at Columbia, MO	48.0%		23,694	6.2%	10/1/2016	2.0		Principal and interest
Copper Beech at Radford, VA	48.0%		11,976	6.0%	11/6/2016	2.1		Principal and interest
Copper Beech at Indiana, PA - IUP I	48.0%		6,500	2.2%	6/2/2017	2.7		Principal and interest
Copper Beech at Allendale, MI - Phase II	48.0%		11,631	6.3%	9/6/2017	2.9		Principal and interest
Copper Beech at Columbia, SC - Phase I	48.0%		36,113	6.3%	9/6/2017	2.9		Principal and interest
Copper Beech at Statesboro, GA - Phase I	48.0%		30,275	5.8%	10/6/2017	3.0		Principal and interest
Copper Beech at Kalamazoo, MI - Phase I	48.0%		29,738	5.8%	10/6/2017	3.0		Principal and interest
Copper Beech at State College, PA - CB II	48.0%		8,475	6.0%	8/1/2019	4.8		Principal and interest
Copper Beech at Columbia, SC - Phase II	48.0%		5,939	5.4%	8/1/2020	5.8		Principal and interest
Copper Beech at Greenville, NC	48.0%		46,900	5.3%	9/1/2020	5.9		Principal and interest
Copper Beech at State College, PA - Oakwood	48.0%		5,592	5.0%	10/1/2020	6.0		Principal and interest
Copper Beech at Kalamazoo, MI - Phase II	48.0%		7,869	5.7%	10/1/2020	6.0		Principal and interest
Sub-Total / Weighted Average			$476,084	5.50%		2.5
Consolidated Property: 48% Ownership Interest
Copper Beech at Ames, IA	48.0%		$14,363	2.4%	5/2/2017	2.6		Principal and interest
Total / Weighted Average			$490,447	5.41%		2.5

 

Note: The Company's pro rata share of Copper Beech debt as of September 30, 2014 was $238,144.

¹ 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, subject to receipt of required third-party lender consents, enabled the Company to acquire a 67% ownership interest in 28 operating properties, while deferring ownership in seven 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. As of September 30, 2014, the Company held a 48% effective interest in 35 operating and two non-operating properties which are unconsolidated and a 48% interest in one consolidated operating property.

 

2 Extensions to the maturity dates for Copper Beech at West Lafyette, IN and Copper Beech at Statesboro, GA - Phase II properties are in process.

 

 

CAMPUS CREST COMMUNITIES
PORTFOLIO OVERVIEW AND OCCUPANCY
								Occupancy
								September 30,
Property	Grouping1		Primary University	Year Opened/ Acquired	Properties	Units	Beds	2014	2013	Change		Rental Rate Change4
Wholly Owned Operating Properties
The Grove at Asheville, NC	(A)		UNC - Asheville	2005		154	448	100.0%	98.4%	1.6%		4.1%
The Grove at Carrollton, GA	(A)		University of West Georgia	2006		168	492	92.1%	98.2%	(6.2%)		0.9%
The Grove at Las Cruces, NM	(A)		New Mexico State University	2006		168	492	82.3%	82.1%	0.2%		(0.0%)
The Grove at Milledgeville, GA	(A)		Georgia College & State University	2006		168	492	100.0%	98.8%	1.2%		2.8%
The Grove at Abilene, TX	(A)		Abilene Christian University	2007		192	504	90.5%	93.1%	(2.6%)		2.5%
The Grove at Ellensburg, WA	(A)		Central Washington University	2007		192	504	99.4%	98.2%	1.2%		3.1%
The Grove at Greeley, CO	(A)		University of Northern Colorado	2007		192	504	100.0%	99.1%	0.9%		2.8%
The Grove at Mobile, AL--Phase I & II2	(A)		University of South Alabama	2007/2008		384	1,008	85.3%	79.2%	6.1%		0.5%
The Grove at Nacogdoches, TX--Phase I & II2	(A)		Stephen F. Austin State Univ.	2007/2012		260	682	83.1%	85.8%	(2.7%)		(0.4%)
The Grove at Cheney, WA	(A)		Eastern Washington University	2008		192	512	93.4%	94.4%	(1.1%)		0.2%
The Grove at Lubbock, TX	(A)		Texas Tech University	2008		192	504	91.9%	91.8%	0.1%		2.5%
The Grove at Stephenville, TX	(A)		Tarleton State University	2008		192	504	100.0%	89.4%	10.6%		(0.8%)
The Grove at Troy, AL	(A)		Troy University	2008		192	514	97.5%	91.7%	5.8%		3.5%
The Grove at Waco, TX	(A)		Baylor University	2008		192	504	90.1%	89.5%	0.6%		(1.6%)
The Grove at Murfreesboro, TN	(A)		Middle Tennessee State University	2009		186	504	99.6%	95.7%	4.0%		3.0%
The Grove at San Marcos, TX	(A)		Texas State University	2009		192	504	95.7%	98.9%	(3.2%)		0.1%
The Grove at Moscow, ID	(A)		University of Idaho	2009		192	504	84.1%	97.0%	(12.9%)		(5.8%)
The Grove at Huntsville, TX	(A)		Sam Houston State University	2010		192	504	100.0%	99.3%	0.7%		3.2%
The Grove at Statesboro, GA	(A)		Georgia Southern University	2010		200	536	85.8%	72.9%	12.9%		(1.3%)
The Grove at Ames, IA	(A)		Iowa State University	2011		216	584	100.0%	99.6%	0.4%		1.8%
The Grove at Clarksville, TN	(A)		Austin Peay State University	2011		208	560	73.9%	82.7%	(8.8%)		2.7%
The Grove at Columbia, MO	(A)		University of Missouri	2011		216	632	73.9%	66.0%	7.9%		2.5%
The Grove at Ft. Wayne, IN	(A)		Indiana University-Purdue University Ft. Wayne	2011		204	540	74.8%	91.8%	(17.1%)		1.8%
The Grove at Valdosta, GA	(A)		Valdosta State University	2011		216	584	86.5%	86.7%	(0.3%)		3.3%
The Grove at Denton, TX	(A)		University of North Texas	2011		216	584	99.2%	91.4%	7.8%		2.4%
The Grove at Auburn, AL	(A)		Auburn University	2012		216	600	100.0%	99.6%	0.4%		3.4%
The Grove at Flagstaff, AZ	(A)		Northern Arizona University	2012		216	584	99.5%	99.0%	0.5%		5.0%
The Grove at Orono, ME	(A)		University of Maine	2012		188	620	100.0%	91.1%	8.9%		2.8%
The Grove at Ft. Collins, CO	(B)		Colorado State University	2013		218	612	100.0%	99.7%	0.3%		4.4%
The Grove at Muncie, IN	(B)		Ball State University	2013		216	584	85.5%	68.1%	17.5%		2.4%
The Grove at Pullman, WA3	(B)		Washington State University	2013		216	584	100.0%	100.0%	0.0%		5.3%
The Grove at Flagstaff, AZ - Phase II2	(B)		Northern Arizona University	2013		54	192	100.0%	99.1%	0.9%		(0.0%)
The Grove at Gainesville, FL	(C)		University of Florida	2014		256	682	54.1%	n/a	n/a		n/a
The Grove at Grand Forks, ND	(C)		University of North Dakota	2014		224	600	99.7%	n/a	n/a		n/a
The Grove at Mt. Pleasant, MI	(C)		Central Michigan University	2014		224	584	76.2%	n/a	n/a		n/a
The Grove at Slippery Rock, PA	(C)		Slippery Rock University	2014		201	603	85.4%	n/a	n/a		n/a
Total - Wholly Owned Operating Properties					36	7,305	19,945	90.4%	90.8%	(0.4%)		2.0%

 

¹ Groupings detailed as follows: (A) reflects the same store properties as of June 30, 2014; (B) reflects the 2013 development deliveries; (C) reflects the 2014 development deliveries.

² The Grove at Mobile, AL--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 Flagstaff, AZ - Phase II are not counted as a separate assets from Phase I of each respective asset.

³ On July 14, 2013, the Company experienced a fire at this development. The Company has reached a resolution with its insurance provider and while no assurances can be given, after taking into account its existing insurance coverage, it believes that the damages sustained as a result of this fire will not have a material adverse effect on its financial position or results of operations. As of September 30, 2014, all 584 beds are in operation.

 

⁴ Rental rate for 2014/2015 academic year over 2013/2014 academic year achieved rental RevPOB.

 

 

CAMPUS CREST COMMUNITIES
PORTFOLIO OVERVIEW AND OCCUPANCY (cont'd)
								Occupancy
								September 30,				Rental Rate
Property	Grouping1		Primary University	Year Opened/Acquired	Properties	Units	Beds	2014	2013	Change		Change2
Joint Venture Operating Properties
The Grove at Lawrence, KS	(A)		University of Kansas	2009		172	500	73.2%	84.0%	(10.8%)		(2.1%)
The Grove at San Angelo, TX	(A)		Angelo State University	2009		192	504	98.4%	96.6%	1.8%		2.1%
The Grove at Conway, AR	(A)		University of Central Arkansas	2010		180	504	71.3%	69.5%	1.8%		1.6%
The Grove at Fayetteville, AR	(A)		University of Arkansas	2012		232	632	66.0%	56.0%	10.1%		2.9%
The Grove at Laramie, WY	(A)		University of Wyoming	2012		224	612	87.1%	83.2%	3.8%		1.5%
The Grove at Stillwater, OK	(A)		Oklahoma State University	2012		206	612	87.2%	96.3%	(9.1%)		2.7%
The Grove at Indiana, PA	(B)		Indiana University of Pennsylvania	2013		224	600	64.8%	89.5%	(24.7%)		0.2%
The Grove at Norman, OK	(B)		University of Oklahoma	2013		224	600	71.9%	81.7%	(9.8%)		3.4%
The Grove at State College, PA	(B)		Penn State University	2013		216	584	100.0%	69.2%	30.8%		4.5%
The Grove at Greensboro, NC	(C)		University of North Carolina at Greensboro	2014		216	584	57.4%	n/a	n/a		n/a
The Grove at Louisville, KY	(C)		University of Louisville	2014		252	656	61.0%	n/a	n/a		n/a
evo at Cira Centre South	(C)		University of Pennsylvania / Drexel University	2014		344	819	48.4%	n/a	n/a		n/a
evo à Square Victoria	(C)		Concordia University / McGill University / (ÉTS)	2014		715	1,294	13.0%	n/a	n/a		n/a
evo à Sherbrooke	(C)		McGill University	2014		488	929	8.0%	n/a	n/a		n/a
Total - Joint Venture Operating Properties					14	3,885	9,430	58.1%	80.4%	(22.3%)		2.7%
Total Operating  Properties3					50	11,190	29,375	80.0%	88.4%	(8.4%)		2.2%
Same Store Properties (A)
Wholly-Owned					29	5,696	15,504	91.7%	90.8%	0.9%		1.8%
Joint Venture					6	1,206	3,364	80.4%	80.5%	(0.1%)		1.9%
Total - Same Store					35	6,902	18,868	89.7%	89.0%	0.7%		1.8%
2013 Deliveries (B)
Wholly-Owned					3	704	1,972	95.7%	90.4%	5.3%		3.0%
Joint Venture					3	664	1,784	78.7%	80.2%	(1.5%)		4.3%
Total - 2013 Deliveries					6	1,368	3,756	87.7%	85.5%	2.2%		3.5%
2014 Deliveries (C)4
Wholly-Owned					4	905	2,469	78.0%	n/a	n/a		n/a
Joint Venture					5	2,015	4,282	32.1%	n/a	n/a		n/a
Total - 2014 Deliveries					9	2,920	6,751	48.9%	n/a	n/a		n/a

 

¹ Groupings detailed as follows: (A) reflects the same store properties as of June 30, 2014; (B) reflects the 2013 development deliveries; (C) reflects the 2014 development deliveries.

² Rental rate for 2014/2015 academic year over 2013/2014 academic year achieved rental RevPOB.

³ 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 this property on January 21, 2014. The occupancy data related to Denton is included in Same Store.

⁴ Does not include the Copper Beech at Ames 2014 delivery. CB Ames is included on page 20.

 

 

CAMPUS CREST COMMUNITIES

COPPER BEECH PORTFOLIO OVERVIEW AND OCCUPANCY1

									Occupancy
									September 30,
Property		Primary University	Year Opened/ Acquired		Properties	Units	Beds		2014		2013	Change	Rental Rate Change2
Unconsolidated Properties: 48% Effective Ownership Interest
Copper Beech at State College, PA - CB I		Penn State University	1996			59	177		100.0%		91.5%	8.5%	(4.3%)
Copper Beech at State College, PA - CB II		Penn State University	1998			87	257		100.0%		93.4%	6.6%	(2.2%)
Copper Beech at State College, PA - Oakwood		Penn State University	2000			48	144		99.3%		77.1%	22.2%	(3.9%)
Copper Beech at State College, PA - Northbrook Greens		Penn State University	2003			166	250		100.0%		100.0%	0.0%	0.9%
Copper Beech at State College, PA - Parkway Plaza		Penn State University	1967			429	633		98.7%		86.3%	12.5%	(4.0%)
Copper Beech at Indiana, PA - IUP I		Indiana University of Pennsylvania	1971			95	239		100.0%		100.0%	0.0%	4.2%
Copper Beech at Indiana, PA - IUP II		Indiana University of Pennsylvania	1973			72	172		100.0%		100.0%	0.0%	3.7%
Copper Beech at Indiana, PA - IUP Buy		Indiana University of Pennsylvania	1975			43	76		97.3%		97.4%	(0.1%)	(5.1%)
Copper Beech at Radford, VA		Radford University	2005			222	500		100.0%		100.0%	0.0%	3.0%
Copper Beech at West Lafayette, IN – Klondike		Purdue University	2003			219	486		86.6%		91.2%	(4.5%)	(1.7%)
Copper Beech at West Lafayette, IN – Baywater		Purdue University	2004			137	488		72.3%		99.4%	(27.0%)	(0.6%)
Copper Beech at Bloomington, IN		Indiana University	2005			107	297		71.0%		83.5%	(12.5%)	2.8%
Copper Beech at Mount Pleasant, MI - Phase I		Central Michigan University	2005			204	632		98.6%		100.0%	(1.4%)	(2.4%)
Copper Beech at Mount Pleasant, MI - Phase II		Central Michigan University	2013			119	256		100.0%		35.9%	64.1%	(7.2%)
Copper Beech at Fresno, CA		California State University at Fresno	2006			178	506		90.3%		86.2%	4.2%	(3.2%)
Copper Beech at Bowling Green, OH - Phase I		Bowling Green University	2005			128	400		99.8%		99.2%	0.5%	0.5%
Copper Beech at Bowling Green, OH - Phase II		Bowling Green University	2007			72	216		100.0%		98.1%	1.9%	(5.4%)
Copper Beech at Allendale, MI - Phase I		Grand Valley State University	2006			206	614		100.0%		100.0%	0.0%	(0.4%)
Copper Beech at Allendale, MI - Phase II		Grand Valley State University	2007			82	290		100.0%		100.0%	0.0%	(1.0%)
Copper Beech at Columbia, MO		University  of Missouri	2006			214	654		89.0%		100.0%	(11.0%)	6.4%
Copper Beech at Bloomington, IN - Colonial Crest		Indiana University	1970			206	402		79.4%		82.6%	(3.2%)	(5.8%)
Copper Beech at Columbia, SC - Phase I		University of South Carolina	2007			278	824		97.3%		100.0%	(2.7%)	(0.7%)
Copper Beech at Columbia, SC - Phase II		University of South Carolina	2008			72	178		97.8%		100.0%	(2.2%)	(1.1%)
Copper Beech at Morgantown, WV		West Virginia University	2010			335	920		99.7%		100.0%	(0.3%)	(0.0%)
Copper Beech at Harrisonburg, VA		James Madison University	2008			414	1,218		100.0%		100.0%	0.0%	2.9%
Copper Beech at Greenville, NC		East Carolina University	2008			439	1,232		95.5%		97.8%	(2.4%)	2.2%
Copper Beech at San Marcos, TX - Phase I		Texas State University	2011			273	840		89.8%		92.7%	(3.0%)	7.6%
Copper Beech at San Marcos, TX - Phase II		Texas State University	2012			142	410		88.8%		92.4%	(3.7%)	4.2%
Copper Beech at Harrisonburg, VA - Grand Duke		James Madison University	2001			120	124		100.0%		100.0%	0.0%	3.5%
Copper Beech at State College, PA - Oak Hill		Penn State University	2003			106	318		100.0%		67.0%	33.0%	(8.5%)
Copper Beech at Statesboro, GA - Phase I		Georgia Southern University	2007			246	754		97.1%		65.5%	31.6%	(7.3%)
Copper Beech at Statesboro, GA - Phase II		Georgia Southern University	2013			82	262		98.5%		43.9%	54.6%	(16.3%)
Copper Beech at Kalamazoo, MI - Phase I		Western Michigan University	2007			256	784		82.0%		85.1%	(3.1%)	3.1%
Copper Beech at Kalamazoo, MI - Phase II		Western Michigan University	2008			115	340		69.1%		74.7%	(5.6%)	(0.8%)
Copper Beech at Auburn, AL		Auburn University	2009			271	754		92.7%		77.1%	15.6%	(6.6%)
Sub-Total / Weighted Average					35	6,242	16,647		93.7%		90.6%	3.1%	0.2%
					.
Consolidated Property: 48% Ownership Interest2
Copper Beech at Ames, IA		Iowa State University	2014		1	219	660		77.9%		n/a	n/a
Total - Copper Beech Portfolio					36	6,461	17,307		93.1%		90.6%	2.5%	0.2%

 

¹ 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, subject to receipt of required third-party lender consents, enabled the Company to acquire a 67% ownership interest in 28 operating properties, while deferring ownership in seven 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. As of September 30, 2014, the Company held a 48% effective interest in 35 operating and two non-operating properties which are unconsolidated and a 48% interest in one consolidated operating property.

² Reflected as of September 30, 2014.

³ Rental rate for 2014/2015 academic year over 2013/2014 academic year achieved rental RevPOB.

 

 

CAMPUS CREST COMMUNITIES
INVESTOR INFORMATION

Executive Management
Ted W. Rollins	Chief Executive Officer
Donnie L. Bobbitt	Chief Financial Officer
Aaron Halfacre	Chief Investment Officer
Scott Rochon	Chief Accounting Officer
Angel Herrera	Chief Operating 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
Goldman Sachs & Co.	Andrew Rosivach		(212) 902-2796		andrew.rosivach@gs.com
MLV & Co LLC	Ryan Meliker / Michael Kodesch		(212) 542-5872 / (646) 556-9188		rmeliker@mlvco.com / mkodesch@mlvco.com
Raymond James & Associates	Paul D. Puryear / Buck Horne		(727) 567-2253 / (727) 567-2561		paul.puryear@raymondjames.com / buck.horne@raymondjames.com
RBC Capital Markets, LLC	Mike Salinsky		(440) 715-2648		mike.salinsky@rbccm.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
Green Street Advisors, Inc.	Dave Bragg / Ryan Burke		(949) 640-8780		dbragg@greenstreetadvisors.com / rburke@greenstreetadvisors.com

 

 

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 2014 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.