American Campus Communities, a publicly-traded real estate investment trust that invests in dormitory housing, has reported a loss of $17.7 million for the third quarter of 2020, compared to income of $20.1 million reported for Q3 2019.
Revenue for the quarter was $202.7 million, down from $227.7 million in revenue in Q3 2019.
The Austin, Texas-based company also reported results for the first nine months of 2020. Comprehensive income for the period was $40.3 million, down from $45.7 million in comprehensive income reported for the first nine months of 2019. Revenue for the nine-month period was $637.6 million, down from $687.2 million reported for the first nine months of 2019.
American Campus Communities’ share price has fallen nearly 20% year-to-date.
American Campus Communities chief executive Bill Bayless said: “While the Covid-19 pandemic has presented many challenges for us all, we are pleased with the outcome of the fall 2020 lease-up and the consumer sentiment reflecting students’ desire to be in the college environment with their peers regardless of the method of curriculum delivery.
“We are also encouraged that our collection rates have been improving, with approximately 97% of rent being paid for the month of September versus the downward trend being experienced in other sectors.
“Once again, the student housing industry exhibited a large degree of resiliency in the fall 2020 lease-up, with Axiometrics [research company] reporting growth in same store rental rates across the industry.
“More broadly, we are encouraged by the universities’ policies and procedures this fall as these institutions continue to promote a safe environment to promote academic achievement and personal growth among students.
“In recent weeks, several universities have announced planned expansions of in-person activities for the spring 2021 term based upon the success of their current operating policies as we continue to progress toward a return to normalcy throughout the 2020-2021 academic year.”
Date published: 27 October 2020