Strong Financial Foundations and Future Growth Prospects slide image

Strong Financial Foundations and Future Growth Prospects

CURRENT BUSINESS UPDATE Students desire to be in college environment. Universities were able to successfully manage enrollment despite the turmoil caused by COVID-19. ACC achieved an average same store rental rate increase of 1.1% and 90.3% leased rate for Fall 2021. 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 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 1.6%. Universities that reported on international enrollment statistics were also able to absorb a 14.1% decline in international enrollment by admitting more domestic students and ultimately only experiencing a 0.4% decrease in total enrollment. Fall 2020 Enrollment Data Fall 2020 Enrollment Data by CHE Curriculum Delivery # Markets w/ # Markets Data % Change Fall Curriculum Plans w/ Data % Change Change in Total Enrollment 68 -0.3% Hybrid 21 1.2% Total Change in Enrol. - Growth Markets 33 2.5% Primarily in person 13 -0.1% Total Change in Enrol. - Decline Markets 35 -3.0% Primarily online 30 -1.2% Change in First-Year Enrollment 61 -1.6% Fully online 4 -3.3% Change in International Enrollment 60 -14.1% Total 68 -0.3% Source: The Chronicle of Higher Education data as of September 30, 2020 and ACC Research. 3
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