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Investor Presentation Pursue Growth 2030 Strategic Capital Platform NAREIT Investor Deck November 2020
PRESENTATION SUMMARY – Strategic Business Plan Review. – Pursue Growth 2030. 1200 W. Marshall | Richmond, VA – Strategic Capital Platform. – Current Business Update. – Company Competitive Position. Village at Overton | Lubbock, TX 1 University Pointe | Portland, OR 1
STRATEGIC BUSINESS REVIEW Strategic Business Plan Review. Throughout 2019, at the direction of and in collaboration with our board of directors, management undertook an extensive review of its historical business strategies and the corresponding outcomes - with specific focus on examining capital allocation decisions, earnings per share growth, internal growth rates, and net asset value creation– along with examining the impacts on the company’s portfolio quality and competitive position within the sector as a means of producing on-going value. We also utilized the “SOAR” process (Strengths, Opportunities, Aspirations, Results) to fully assess the company’s core competencies and how to best employ them as we evolve our business strategy to drive earnings growth and to maximize long-term shareholder value. This extensive strategic planning process, which took place over more than a year, resulted in the Pursue Growth 2030 strategic initiative, including the establishment of a Strategic Capital Platform using joint ventures and private equity funds. These initiatives will facilitate the company’s return to an entrepreneurial external growth strategy in all market cycles to facilitate earnings growth and to maximize long-term shareholder value. The company had planned to unveil this strategy at a May 2020 investor day, but the COVID-19 pandemic temporarily interrupted its launch. While the pandemic created short-term disruption to our industry and delayed the announcement and discussion of our strategic growth initiatives, the student housing sector appears to be on a path to return to its historical resiliency. The disruption caused by COVID appears to have only enhanced the growth opportunities available to the company in a post-COVID world. We believe our Pursue Growth 2030 initiative coupled with a Strategic Capital Platform will drive earnings growth and create shareholder value throughout the next decade. 2
STRATEGIC BUSINESS REVIEW Historical overview. PRIOR TO 2013 2014-2018 Entrepreneurial external growth coupled Strategic portfolio refinement and with internal value creation unlocked via balance sheet repositioning our best-in-class platform • Sold non-core assets at 6.0-6.5% yields to fund higher • $6 billion in acquisitions with platform-driven upside quality core development and presale assets at from occupancy pickup, pricing maximization and approximately equal yields. expense efficiencies. • Earnings dilution from the 1-2 year lag from disposition • Scale efficiencies helped drive internal growth metrics. capital raises to developments generating income. • Consistently operated with leverage ratio in the mid • Portfolio size remained constant, resulting in lost 40’s. efficiencies of scale leading to lower internal growth rate. • ACC’s cost of public equity was below private • De-levered the balance sheet reducing leverage to the market cap rates facilitating M&A. mid 30’s . • Private market cap rates trended below public cost of equity curtailing M&A . 2005–2013 2014–2018 7.3% 0.8% FFOM PER SHARE FFOM PER SHARE CAGR CAGR 3
STRATEGIC BUSINESS REVIEW Historical look at internal value creation. Estimated Rental Rate Occupancy SSNOI Total Property FY SSRev Growth Growth Impact from SSNOI Count Year Growth1 (Bps)1 (Bps)1 Scale (Bps)2 Growth1 Growth1 Average 3.0% 229 69 2 3.9% 15.9% 2014-2018 Average 2.5% 258 (2) (58) 2.6% 0.1% 2005-2013 Average 3.3% 213 109 45 4.6% 24.7% +80 bps (45) bps +111 bps + 103 bps +200 bps − During M&A growth period (‘05-‘13) occupancy upside in acquired assets resulted in an average of 109 basis points in same store revenue growth contribution, which was diminished by an avg of 111 basis points when growth was primarily from development as ACC developments typically delivered at ACC historical occupancy levels. − During our period of strategic portfolio refinement and deleveraging (‘14-‘18), we lost the efficiency contribution from scale on our internal growth metrics. (103 basis points average diminishment to same store NOI growth). − Improving portfolio quality via development did result in better pricing power as rent growth increased by an average of 45 basis points. Source: Internal company data and public filings. 1. Based on calendar year results. 4 2. Same store NOI (SSNOI) impact from scale estimated based on actual results versus estimated inflationary G&A expense per property, adjusted for property count growth.
STRATEGIC BUSINESS REVIEW Strategic repositioning hindered earnings growth. From 2013 to 2018, ACC’s strategic portfolio refinement via non-core dispositions to fund high-quality select development, balance sheet improvement and investment in Next Gen resulted in depressed earnings growth. High-Quality Select Development Development Initial 2019 Delivery Year Cost ($M) Yield2 Yield Estimated $660M Sold $1.9B in non-core assets 2013 $311.9 7.0% 9.0% +$0.46 -$0.30 averaging 1.1 miles from value creation from 20.8% -13.7% 2014 $224.4 6.5% 8.1% $2.2B in Development. campus and 14 years of age. 2015 $297.6 6.7% 7.3% 2016 $287.1 6.0% 6.9% Estimated $585M Equity issuance 2017 $609.2 4.8% 5.8% NAV creation from -$0.21 reduced leverage internal growth 690 basis points. 2018 $387.3 6.5% 6.5% -9.6% Portfolio Improvement +$0.27 12.4% Total Owned Beds <1/2 Mile 1 Mile 1+ Miles -$0.13 G&A growth including -5.9% 2013 66% 12% 22% initial investment in Next Gen operating platform $2.31 2018 93% 7% 0% and systems improvement. 4.0% Change 27% (5%) (22%) $2.22 Balance Sheet Improvement 2013 2018 Change 2013 Internal Net Net Dispo Net Equity G&A and 2018 Total Debt/Total Asset Value 43.4% 36.5% (6.9%) FFOM/sh Growth1 Acq/Dev Impact1 Impact1 Other1 FFOM/sh 1 Net Debt/EBITDA 7.5x 6.3x (1.2x) Impact % of Beds On-Campus 15% 25% 10% Source: Internal company data and public filings. 1. FFOM per share build up estimated based on actual results. Internal growth represents NOI growth from the constant pool of assets held from January 1, 2013 to December 31, 2018. Net acq/dev and net dispo impact based on assets developed, acquired or sold from January 1, 2013 to 5 December 31, 2018, less assumed funding charge of 4%. Net equity impact represents the per share dilution from equity raises offset by estimated interest expense savings at 4%. Per share amounts based on diluted weighted average common shares outstanding for the year ended 12/31/13. 2. Initial Yield is calculated using the first full calendar year of NOI divided by the development cost.
STRATEGIC BUSINESS REVIEW 2019 – Repositioned for value creation. − ACC’s strategically refined portfolio is positioned to have even more resilient performance over the long-term. • Closer location to campus. • Higher product quality & correspondingly lower cap-ex requirements. • Enhanced price-point and product differentiation. • Improved sustainability of cash flows. − Going forward, the company is better suited for accretive capital recycling. − Portfolio of primarily core assets offers an accretive reinvestment opportunity into higher yielding developments. − Increased focus on match-timing and sizing relative to deployment into income producing assets. − Operational systems enhancement through Next Gen and business intelligence investment have increased the efficiency and scalability of the company’s platform. − Prior to COVID, 2019 reflected the beginning of a return to improved earnings per share growth as FFOM per share grew 4.8% year over year compared to 0.8% on average for the 2014-2018 time period. 6 AMERICAN CAMPUS COMMUNITIES :: 6
Pursue Growth 2030 Creating long-term value for our shareholders. 7
STRATEGIC BUSINESS REVIEW SOAR Core Competencies. In 2019, the company undertook a strategic business plan review to identify core competencies and position the company for growth over the next decade. − Consumer centric approach to programming and designing “best-in-market” residential accommodations and communities. − Strategic product design to create accommodations with diverse and affordable price points that maximize potential market share and sustainable revenue growth. − Sophisticated and complex P3 transaction structuring capabilities - focused on win-win outcomes. − Best-in-Class development and proprietary operating platforms. − Software and systems development to create competitive advantage. − Embracing and advancing Business Intelligence capabilities. − Developing Talent. − ESG leader - shaping a brighter future for our students, employees, communities and the planet we all share. 8 AMERICAN CAMPUS COMMUNITIES :: 8
PURSUE GROWTH 2030 Strategic Initiative Pursue Growth 2030. 2030 Return to an entrepreneurial external growth Strategic model and diversify our strategic access to Vision capital to deliver significant earnings growth. Establish a strategic capital platform to emulate our private company competitors’ access to low-cost private equity. Utilize off-balance sheet structure, fee generation and increased operating leverage to drive earnings growth and returns. This strategy ultimately enables ACC to capitalize on the benefits of being a public company with access to public debt and equity while accessing private capital when cost- effective. 9
PURSUE GROWTH 2030 Pursue Growth 2030. ACC’s core competencies can be leveraged to drive earnings growth through multiple investment strategies, whether on or off-balance sheet. – Student Housing Development Opportunities • Continued execution of our shadow development pipeline with NOI yields 175+ basis points above private market cap rates. • Expand development pipeline through accessing private capital targeting lower overall returns, while earning significant upfront, recurring fees. – Student Housing Acquisition Opportunities • ACC has the opportunity to once again be the industry consolidator. • Proven ability to create value through occupancy improvements and pricing strategies to drive revenue growth. • Remain consistently competitive in the acquisition market in any environment by adding a strategic joint venture capital platform. – Fee Income • Fees associated with our joint venture interests – acquisition, development, property management, asset management. • Promote Fees earned as incentive management fees structured to be recognized as FFOM. • Focus on increasing third-party management footprint. • Next Gen licensing fees. – Operating Leverage through Scale Efficiencies • Owned/Managed asset base increasing in excess of G&A growth rate. • Spreading G&A across a wider asset base will help drive internal SSNOI growth. 10
PURSUE GROWTH 2030 Coexisting synergistic platforms. Expanding the company’s capital alternatives for growth with a joint venture strategic capital platform will enhance the ability to be opportunistic in all environments. Public Company Platform Strategic Capital Platform Investment Criteria Tier 1 University markets Broader market focus Market Strategy • Power 5 Conference • ESPN Bowl Eligible • Carnegie R1 • Tertiary in unique situations Core and value-add acquisitions Off-campus developments that do not meet our yield ACE on-campus development requirements or investment criteria Select off-campus development On-campus “equity” developments that do not meet our yield Investment Strategy Opportunistic M&A and core acquisitions requirements or investment criteria Core, pedestrian locations Hold period based on opportunity/maximum returns Long-term hold Potential to sell existing REIT assets into JVs/funds as additional source of capital and/or to mitigate exposure to individual markets or large transactions Acquisition Cap Rates Currently below cost of public equity 4.0–4.75% (low, coupon clipping) Development Yield 175+ bps above private market cap rates 5.25–5.75% Requirements (generally representing 6.0+%) Historical third-party fee revenue Expanded fee potential Average $14–23 million per year Fee Income Significant additional upside through promotes Enhanced P3 opportunity set post-COVID Benefits from increased scale from strategic capital Leveraging existing G&A infrastructure to create additional Efficiencies of Scale platform, improving same store growth avenues for earnings growth 11
PURSUE GROWTH 2030 - DEVELOPMENT Creating value through selective development. ACC has consistently delivered high-quality, value-enhancing developments throughout the economic cycle. – ACC has set a high standard on what projects are selected to be on-balance sheet. Average miles to • Over the last decade, ACC closed on only 15% of all campus for ACC’s underwritten development deals. 0.10 developed assets. – $8.1 billion in owned and third-party development for our university partners since inception. Per bed 2019 annual recurring capex for – $4.8 billion in total owned developments. development assets • $2.7 billion through the ACE program. $155 compared to $292 for acquired properties. • $2.1 billion in off-campus development. – ACC has achieved an average calendar year one NOI Development 2019 NOI margin yield of 6.3% on its development pipeline since IPO. compared to 51.2% 60.8% for acquired properties. 12 Source: Internal company data and public filings.
PURSUE GROWTH 2030 - DEVELOPMENT On-campus modernization opportunities post-COVID. Enhanced opportunities to capitalize on the potential acceleration of modernization due to COVID-19. – Impact of COVID highlighted need to accelerate modernization, especially of community bath residence halls “The coronavirus pandemic resulted in fiscal challenges – Financial stress from COVID will push more universities to P3 at institutions and virtual learning dampened housing and off-balance sheet financing structures, like the ACE demand, but Fitch anticipates an increase in project program. financings and public private partnerships (PPPs) over the medium term as institutions look to expand housing – ACC’s public company platform makes us the only company and repurpose assets.” that offers single-source partner equity/developer/manager solution. Project Financings in U.S. Higher Education Report, October 2020 Traditional community bath- Average age of existing on- style beds within ACC markets, campus housing in ACC representing over 39% of 53 markets. 183k existing on-campus housing. Potential P3 transactions ACC Win rate for P3 projects is currently tracking, beyond its pursued and awarded in 2018- 10 awards already in 56 62% 2019. predevelopment. 13 Source: Internal company data and public filings.
PURSUE GROWTH 2030 - ACQUISITIONS Acquisition opportunities post-COVID. Plan to take advantage of potential disruption using JV structures to invest in acquisition opportunities generating fee income, increased scale and enhancing our business intelligence platforms. Increased Outperformance Opportunity Post-COVID – Greater occupancy upside and strategic rental rate repositioning due to COVID-19 disruption. 550 bps OCCUPANCY UPSIDE – Application of sophisticated operating platform 97.5% 900 bps compared to smaller operators that may not OCCUPANCY UPSIDE have been able to navigate the new issues that emerged during COVID-19 as effectively: 92.0% • Skip/no show management. 88.5% • Market research. • Multiple coinciding leasing periods. Avg. ACC Fall 2019* 2020* Occupancy (Pre-COVID) (Post-COVID) (Pre-COVID) *Axio175 within 0.5 miles of campus 14
PURSUE GROWTH 2030 - ACQUISITIONS Next Gen-enhanced proprietary operating platform. ACC’s proprietary operating platform created a significant core competency that will be enhanced with the implementation of our Next Gen business intelligence systems. Current Proprietary Platform Next Gen Enhancements - 100% Digital Leasing - “Instant Leasing” Capabilities Leasing - Intelligent Marketing Campaigns - Enhanced Self-Service Customer Experience Targeted Social University Brand Ads / SEO Media Relationships Value - Dynamic & Perpetual Inventory Management Operations/ - Enhanced Current Period Leasing Revenue Management - Automated Data Generation - ‘Smart’ Rate Setting Through BI Centralized Proprietary LAMS Corporate Support Systems Allows for the combined analysis of ACC’s Investment sector leading Market, Competitor, Leasing and Decision Financial Data Warehouses in ways previously Making unobtainable allowing for unprecedented insights into the business. Analytics Business Portfolio Intelligence Optimization 15
PURSUE GROWTH 2030 - SCALE EFFICIENCIES Scale efficiencies through growth. ACC will benefit from increased scale through growth in the strategic capital platform, improving same store growth. Estimated Total Rental Rate Occupancy SSNOI Property FY SSRev Growth Growth Impact from SSNOI Count Year Growth1 (Bps)1 (Bps)1 Scale (Bps)2 Growth1 Growth1 Average 3.0% 229 69 2 3.9% 15.9% 2014-2018 Average 2.5% 258 (2) (58) 2.6% 0.1% 2005-2013 Average 3.3% 213 109 45 4.6% 24.7% Incremental value +80 bps (45) bps +111 bps +103 bps +200 bps creation through long-term M&A − During periods of M&A growth like 2005-2013, ACC drove outsized same store revenue growth from occupancy improvement, while same store revenue and NOI growth both benefit from platform efficiencies and scale. − Using the Strategic Capital Platform, ACC and its JV partner(s) will benefit from revenue enhancement through ACC’s operating platform, while ACC’s internal growth will also benefit from spreading G&A across a wider asset base. − As the long-term industry consolidator, ACC has significant opportunity to return to higher internal growth. Source: Internal company data and public filings. 16 1. Based on calendar year results. 2. Same store NOI (SSNOI) impact from scale estimated based on actual results versus estimated inflationary G&A expense per property, adjusted for property count growth.
PURSUE GROWTH 2030 The next decade of growth. Pursue Growth 2030 and its Strategic Capital Platform leverages our core competencies to create long-term value for shareholders. – Exploit our competitive position as the leader in the P3 arena to capitalize on the acceleration of the modernization of on-campus housing post-COVID. – Reserve balance sheet for on-campus ACE developments, selective core off-campus development and acquisitions when cost of public capital permits. – Utilize the Strategic Capital Platform to take advantage of low-cost private market capital to invest in core and value-add acquisitions and off-campus development to drive outsized returns. – Our external growth initiatives will increase the company’s platform efficiencies and scale, enhancing internal growth. – A multi-faceted entrepreneurial growth strategy better positions the company for enhanced and sustainable earnings per share growth throughout market cycles. 17
Current Business Update Lightview | Boston, Massachusetts 18
CURRENT BUSINESS UPDATE Recent highlights. ACC experienced an improved operating environment as it moved into the Fall 2020 semester. – First and second quarter 2020 summary. • Completed the disposition of The Varsity located in College Park, Maryland for proceeds of $148 million, representing a 4.1% economic cap rate. • Announced future on-campus developments at MIT and Virginia Commonwealth University. • Successfully raised $800 million through two 10-year bond offerings in January and June at an average yield of 3.4%. • Created the Resident Hardship Program and pledged that every ACC resident will continue to have a home during the COVID-19 crisis regardless of their ability to pay rent. Tooker House | Tempe, AZ – Third quarter 2020 summary. • Achieved an average rental rate increase of 1.1% and 90.3% leased rate for 2021 same store properties as of September 30, 2020. • Received payments for approximately 97% of rent for September, the first full month of the new academic year. • Refunded rent of only $2.1 million compared to $15.1 million in on-campus rent refunds in 2Q. • Rent abatement through the Resident Hardship Program totaled $4.7 million (with the majority related to prior academic year leases) compared to $8.6 million in 2Q. • Delivered the second phase of the Disney College Program development and developeda plan to market and lease the project to a broader market until the internship program resumes. Lightview | Boston, MA 19
CURRENT BUSINESS UPDATE Students desire to be in college environment. Universities were able to successfully manage enrollment despite the turmoil caused by COVID-19. – As of September 30th, classes at 13 of the universities ACC serves were primarily in-person, while 55 universities were using some level of online curriculum delivery methodology. – However, Fall 2020 total enrollment at the universities ACC serves is relatively flat compared to 2019 (-0.3% year over year). – Leasing at properties that primarily serve first-year students was most impacted by COVID-19, but the company expects the long-term impact to be limited as first-year enrollment was only down 1.1%. – Schools were also able to broadly offset losses in international enrollment as international enrollment was down 13.9% year over year, while total enrollment at those schools was roughly flat at -0.3% growth. Fall 2020 Enrollment Data by CHE Curriculum Fall 2020 Enrollment Data Delivery # Markets # Markets w/ Data % Change Fall Curriculum Plans w/ Data % Change Change in Total Enrollment 58 -0.3% Primarily in person 11 0.4% Total Change in Enrol. - Growth Markets 29 2.5% Hybrid 17 -0.2% Total Change in Enrol. - Decline Markets 29 -3.1% Primarily online 27 -0.5% Change in First-Year Enrollment 40 -1.1% Fully online 3 -2.4% Change in International Enrollment 35 -13.9% Total 58 -0.3% Source: The Chronicle of Higher Education data as of September 30, 2020 and ACC Research. 20
Company Competitive Position Manzanita | Tempe, Arizona 2121
COMPANY COMPETITIVE POSITION ACC’s on-balance sheet investment approach. ACC owns the industry’s preeminent portfolio—located a median distance of only one-tenth of a mile from campus. We primarily focus on developing and owning on-campus and pedestrian-to-campus properties serving Power 5 conferences and Carnegie R1 institutions. Investment criteria focuses on differentiated properties in close proximity to campus within submarkets with high barriers to entry. Current Portfolio Portfolio NOI Composition by Distance to Campus1 1 PROPERTIES 34 115 10 NOI 33% 61% 6% 0% 94% of NOI within ½ mile from campus 1/2 1 1+ University mile mile mile 0.1 miles median distance to campus Single Property in Market Multiple Properties in Market 1. Includes owned properties, properties currently under construction, and properties expected to commence construction during the current calendar year. NOI used for percentage calculations for properties (i) open for the entire trailing 12 month period are based upon historical data, and (ii) owned for less than the full trailing 12 month period are based upon historical data and management’s estimates. Excludes properties classified as held for sale. Actual results may vary. 22
COMPANY COMPETITIVE POSITION Modernizing an industry. Composition of student housing should continue to transition toward more modern, purpose built supply. Modernization is opportunity. Supply in 68 ACC University Markets2 On-campus – Primarily consists of residence halls built in the 1950’s-60’s designed for the Baby Drive: 13% Median Age: 11 years Boom generation. – The median age of existing on-campus housing exceeds 50 years old in ACC markets. Purpose Built 25% – New purpose built living learning communities will replace these antiquated dormitorieswith productmeeting the needs of currentstudents. Pedestrian: 12% Median Age: 7 years Off-campus – Majority of current stock is low density alternate housing such as absentee Alternate Supply landlord communities and single family residences not designed for today’s 52% student. On-Campus – New purpose built development off-campus is replacing this sub-standard 23% alternate housingwith modernpurpose-builtproduct. – Currentpurposebuilt communities began in the mid 1990’s. Modernization • The majority of early communities(pre-2010)weredrive properties. is opportunity. • Since 2010, the majority of development has been built pedestrian to campus.1 1. According to the Company’s most recent annual review of overall market composition. 2. According to the Company’s analysis; estimated based on 2020 supply categories divided by academic year 2020/2021 preliminary enrollment within ACC’s 68 university markets. Purpose built reflects certain off-campus properties that may 23 lease by the unit rather than by the bed, but compete with ACC properties in the student housing market.
COMPANY COMPETITIVE POSITION Consistent enrollment growth. Enrollment growth at ACC targeted universities has remained steady throughout the economic cycle. – Declining national enrollment statistics over the last decade have been driven by non-traditional students leaving private for-profit universities and community colleges to returnto the workforceas the economyhas recovered. – Public 4-yearuniversitieshave averaged1.6% annual enrollmentgrowthsince 1970 and havecontinuedat these levels since the Great Recession. Public 4-year University Public 4-year Universities Remain in Demand Enrollment Growth (CAGR) 20% Since 1970 1.6% 10% Since 1980 1.5% Since 1990 1.5% 0% Since 2000 2.3% -10% Since 2010 1.6% -20% Cumulative EnrollmentCumulative Growth -30% -40% 2009 2010 2011 2012 2013 2014 2015 2016 2017 Public 4-year Private 4-year Nonprofit Public 2-year Private For-profit Total Source: National Center for Education Statistics 2018 Table 303.25 (Data through Fall 2017). 24
COMPANY COMPETITIVE POSITION Value of a college degree remains intact. Public 4-year universities still provide a good return and student debt is manageable. – At four year public universities, 34% of students graduate with no debt1. • Of those graduating with debt, the average student loan balance is only $26,9001. – $23,000 salary differential between college graduates and high school graduates2. – Annual average in-state tuition costs at the 60 public universities served by ACC is less than $11,000. – Annual net tuition and fees is less than $10,000 for 77% of students at four-year public institutions (after grant aid)3. – Student loan default rates average sub-4% at Power 5 and Carnegie R1 institutions. Average Earnings by Level of Education2 Student Debt Levels1 and Default Rates4 $60,000 14% $45,000 16% 13% $23,000 Sub-4% default rates $40,000 incremental 12% 14% $50,000 $54,990 at Power 5 and R1 14% $35,000 earnings institutions 12% 10% $40,000 $30,000 10% 8% $25,000 $35,000 $30,000 7% 8% 6% $20,000 7% $31,990 7% $25,980 6% $20,000 $15,000 4% 4% 4% $10,000 3% $10,000 2% $5,000 2% $26,900 $31,450 $39,900 $0 0% $0 0% Less than high High school Some college, Bachelor's or 4-year Public 4-year Private Non- 4-year Private For- school completion no bachelor's higher degree Profit Profit completion degree Median Annual Earnings ($) Unemployment Rate (%) Average Loan Balance ($) Default Rate (%) Source: Company data 1. TICAS, “Quick Facts about Student Debt”, April 2019. 3. The College Board, Trends in College Pricing 2018. 25 2. National Center for Education Statistics 2018 Table 502.30 and Table 501.80. For persons 25-34 years old. 4. Federal Student Aid an Office of the U.S. Department of Education, September 26, 2018.
COMPANY COMPETITIVE POSITION Historically recession resistant cash flows. Stable Performance Through Cycles 200 40.0% 180 30.0% Year over Year Growth 160 20.0% 140 10.0% 120 0.0% 100 -10.0% 80 60 -20.0% Indexed Growth Indexed 40 -30.0% 20 -40.0% 0 -50.0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 4 Yr Public University Enrollment Same Store NOI Growth (Indexed) Multifamily Same Store NOI Growth (Indexed)1 S&P 500 Annual Return Portfolio Improvement Since Last Downturn Distance to Campus (% of Beds) ACC’s recession resilient cash flows have produced similar same store < 1/2 Mile 1 Mile 1+ Miles NOI growth to multifamily, with less volatility throughout the economic 2009 58% 22% 20% cycle. 2019 93% 7% 0% Strategic capital recycling has further strengthened portfolio quality relative % of Beds On-Campus to last downturn. 2009 2019 8% 26% Sources: U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS), Fall Enrollment component final data (2002, 2003, 2006 - 2016) and provisional data (2004, 2005, 2017). ACC Research. 1. Multifamily peer group includes AVB, AIV, EQR, ESS, CPT, MAA, UDR. 26 Note: 2018 & 2019 enrollment growth based on ACC portfolio.
COMPANY COMPETITIVE POSITION Build for the masses, not the classes. ACC’s properties are strategically positioned to target all student demographics with a focus on affordability. ACC Effective Rental Rates versus Competitive Set (% of ACC Properties) Better Product at a Better Price Point 27 Source: Data from RealPage Axiometrics’ Student Housing Performance Time Series by Month report as of 10/24/2019. Market statistics are based on all properties tracked by RealPage in ACC’s 69 markets located within 1 mile from campus with effective rental rate data for September 2019.
COMPANY COMPETITIVE POSITION Management team advantage. Innovative products and services, new ways of thinking, and continual self-evaluation maintain our competitive advantage and allow us to meet the emerging needs of an ever-changing marketplace. Grass Roots Management Industry Leadership Two-Time Texan by Nature 20 Honoree Senior Hi, How Are You Project Sponsor Management Team Great Place to Work® Certification 26 Members began America’s 100 Most Trustworthy Companies Careers as RA’s 39 Innovator Awards 28 Pillars of the Industry Awards (NAHB) Innovative Product Design Focus on creating a unique sense of community through shared living at a price point that previously did not exist. Standard Deviation 28
COMPANY COMPETITIVE POSITION Balance sheet positioned to weather disruption. The company benefits from broad access to capital, ample liquidity and limited near-term debt maturities. Balance Sheet Management Balance Sheet Liquidity (in millions)1 Investment Grade Credit Profile Revolver Capacity $1,000.0 • BBB negative / Baa2 stable2. Drawn to Date ($276.7) • Provides access to broadest set of capital options. • Consistent cash flows and credit statistics. Available to Draw $723.3 Cash and Cash Equivalents $44.4 Maintain a staggered debt maturity schedule • No remaining 2020 maturities and limited mortgage Total $767.7 maturities in 2021. Broad access to capital 1 • ACC has raised $6.4 billion from dispositions, joint Debt Maturity Schedule ventures and capital markets activity since the $1,000 beginning of 2015. Unsecured Notes On-Campus Participating Properties $900 Unsecured Term Loans Unsecured Revolving Credit Facility Access to GSE’s and other secured debt provides flexibility $800 Mortgage Loans Manageable development exposure with approximately 2% $700 of gross assets in annual developments through 2023 $600 • $201 million development cost remaining to fund is covered by current liquidity. $500 $800 $400 $200 $400 $2 $300 $400 $200 $24 $400 $400 $277 $330 $100 $167 $132 $26 $9 $8 $40 1. As of September 30, 2020. $0 2. A credit rating is not a recommendation to buy, sell, or hold securities and may be changed or withdrawn at any time. 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029+ 29
FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES In addition to historical information, this presentation contains forward-looking statements under the applicable federal securities law. These statements are based on management’s current expectations and assumptions regarding markets in which American Campus Communities operates, operational strategies, anticipated events and trends, the economy, and other future conditions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. For discussions of some risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements, please refer to our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2019 under the heading “Risk Factors” and under the heading “Business - Forward-looking Statements” and subsequent quarterly reports on Form 10-Q. We undertake no obligation to publicly update any forward-looking statements, including our expected 2020 operating results, whether as a result of new information, future events,or otherwise. This presentation contains certain financial information not derived in accordance with United States generally accepted accounting principles (“GAAP”). These items include earnings before interest, tax, depreciation and amortization (“EBITDA”), net operating income (“NOI”), funds from operations (“FFO”) and FFO-Modified (“FFOM”). The National Association of Real Estate Investment Trusts (“NAREIT”) currently defines FFO as net income or loss attributable to common shares computed in accordance with GAAP, excluding gains or losses from depreciable operating property sales, plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. The Company presents FFO because it considers FFO an important supplemental measure of its operating performance and believes it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs. We also believe it is meaningful to present FFOM, which reflects certain adjustments related to the economic performance of its on-campus participating properties, impairment charges, losses on early extinguishment of debt related to property dispositions, and other non-cash charges. FFO and FFOM should not be considered as alternatives to net income or loss computed in accordance with GAAP as an indicator of the Company's financial performance or to cash flow from operating activities computed in accordance with GAAP as an indicator of its liquidity, nor are these measures indicative of funds available to fund its cash needs, including its ability to pay dividends or make distributions. The Company defines property NOI as property revenues less direct property operating expenses, excluding depreciation, but including allocated corporate general and administrative expenses. 30 The Summit | Philadelphia, PA Plaza on University | Orlando, FL 13