American Campus Communities, a publicly-traded real estate investment trust that invests in dormitory housing, has reported a second-quarter 2021 net loss of $11.1 million, compared to a net loss of $15.4 million reported for the second quarter last year.
Revenue for the quarter was $199.6 million, up from $177.5 million in revenue reported for Q2 2020.
The Austin, Texas-based company also reported results for the first six months of 2021. Net income for the period was $4.9 million, down dramatically from $66.6 million in net income reported for the first six months of 2020. Revenue for the period was $418.1 million, up from $410.3 million reported for the first six months of 2020.
American Campus Communities chief executive Bill Bayless said: “The positive trends toward normalisation continue on all fronts. We outperformed our operational and financial expectations for the quarter, our Disney College Program housing continues to make great strides in initial occupancy, and our fall 2021 lease-up moved ahead of the prior year’s pace in early July. Our preleasing velocity is now trending at a level that we believe will result in occupancy and average rental rate gains producing opening rental revenue growth for the 2021-2022 academic year of 5.1 to 7.6%. We are pleased to now be able to provide a financial outlook for the full year that includes these positive trends. While the short-term impacts from the Covid pandemic will linger into fall of 2021 at varying degrees geographically, we continue to believe that we will return to our historic range of occupancy for the 2022-2023 academic year, as the long-term fundamentals of our sector are strong and appear to be gaining tailwinds.
“Specifically, these tailwinds include admission applications at record highs at the four-year public and private universities we serve and target; new supply is continuing to trend downward nationally through the 2022-2023 academic year; universities nationwide are resuming in-person academic and social activities and are reinstating their on-campus housing policies for first-year students in fall 2021; and university partnership opportunities to modernise on-campus housing are resuming to pre-pandemic levels and beyond. This environment provides the company a unique opportunity for robust internal growth and high-quality external growth, driving meaningful earnings growth and net asset value creation in the years ahead.”
Date published: 3 August 2021