Strong Financial Foundations and Future Growth Prospects slide image

Strong Financial Foundations and Future Growth Prospects

CURRENT BUSINESS UPDATE Recent highlights. ACC experienced an improved operating environment as it moved into the Spring 2021 semester. - 2020 and COVID impact 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 97.6% of rent in the fourth quarter, compared to 93.7% and 94.6% in the second and third quarters, respectively. Refunded rent of only $1.5 million in 4Q compared to $15.1 million and $2.1 million in on- campus rent refunds in 2Q and 3Q, respectively. Rent abatement through the Resident Hardship Program totaled $0.9 million in the fourth quarter compared to $8.6 million in the second quarter and $4.7 million in the third quarter. Current environment. Signed 3,600 leases for spring 2021 move-ins, ~50% more than last year's 2,400 leases. Industry-wide preleasing is progressing at a slower pace than in years prior to COVID, however asking rental rates remain in-line or slightly above prior year pricing and ACC leasing velocity is outpacing peers in the majority of markets. Incrementally positive university announcements regarding Fall 2021 in-person classes, exemplified by the announcements by the U-Cal and Cal State university systems as well as several other major universities who have been fully online in the current academic year. Early indications on college application data and university admissions commentary indicate a potential increase in demand for higher education in the fall for Tier 1 universities. Improved Operating Environment Rent Collections Refunded Rent (millions) RHP Rent Abatements (millions) 2Q20 3Q20 4Q20 93.7% 94.6% 97.6% $15.1 $2.1 $1.5 $8.6 $4.7 $0.9 LIGHTVIEW Lightview | Boston, MA 2
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