Presentation NAREIT Investor Deck June 2019 0 BEST-IN-CLASS - - PowerPoint PPT Presentation

Investor Presentation

NAREIT Investor Deck June 2019

ACC pioneered the modernization of the student housing industry with over $16.0 billion in transactions since inception.

BEST-IN-CLASS STUDENT HOUSING COMPANY

• 1. Developments includes both owned and third party projects, properties currently under construction, and properties expected to commence construction during the current calendar year. Dispositions includes transactions completed and under contract.

Acquisitions includes transactions completed. As of 4/22/19.

• 2. Based on share price as of 3/31/2019.
• 3. Employees as of 12/31/2018.

Who we are.

2004 IPO Q1 2019 Enterprise Value : $351M $9.7B2 Markets: 12 68 Properties: 16 171 Beds: 11,773 109,400 Employees: 560 3,1003 Credit Rating: Unrated BBB stable / Baa2 stable

Comparative Statistics American Campus Communities (ACC), founded in 1993, is the largest developer, owner and manager of high-quality student housing communities in the United States.

“…to be the nation’s premier provider of quality student housing communities and services through a unique understanding and an unrelenting commitment to students, parents, educational institutions and

• investors. Our people are our strength,

achieving success through a dedication to excellence and integrity.”

$7.9B in Development $5.9B in Acquisitions $2.2B in Dispositions

Transactions since Inception1 Founding Mission

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Wholly-owned Market AY 18-19 Enrollment ACC Owned Beds ACC Beds as % of Total Enrollment % of Total LTM NOI 1 Arizona State University 51,585 7,822 15.2% 9.1% 2 University of Texas at Austin 51,832 4,980 9.6% 7.7% 3 Drexel University 24,634 3,192 13.0% 5.2% 4 Northern Arizona University 23,140 3,307 14.3% 3.9% 5 Florida State University 41,717 3,665 8.8% 3.8% 6 Virginia Commonwealth University 31,076 2,786 9.0% 2.7% 7 Texas A&M University 63,694 3,116 4.9% 2.6% 8 University of Central Florida 54,322 2,045 3.8% 2.6% 9 University of Michigan 46,716 1,767 3.8% 2.5% 10 University of Kentucky 29,182 2,974 10.2% 2.4% 41,790 3,565 8.5% 42.6% Avg Avg Avg Total

ACC owns the industry’s preeminent portfolio—located a median distance of only one-tenth of a mile from campus.

BEST-IN-CLASS STUDENT HOUSING COMPANY

• 1. Includes owned properties, properties currently under construction, and properties expected to commence construction during the current calendar year and contribute NOI in the next 12 months. NOI used for percentage calculations for properties (i)
• pen 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.

Where we are.

Current Portfolio We primarily focus on developing and owning on-campus and pedestrian-to-campus properties serving Power 5 conferences and Carnegie R1 institutions. Our investment criteria focuses on differentiated properties in close proximity to campus within submarkets with high barriers to entry. Top 10 Universities by NOI1

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University PROPERTIES NOI 1 mile

Portfolio NOI Composition by Distance to Campus1

1/2 mile 1+ mile 0.1 miles median distance to campus 149 95% 9 5% 1 0%

• 40%
• 30%
• 20%
• 10%

0% 10% 20% 2009 2010 2011 2012 2013 2014 2015 2016 2017

Cumulative Enrollment Growth

Public 4-year Public 2-year Private 4-year Private For-profit Total

Consistent enrollment growth.

In ACC target markets, enrollment has remained steady regardless of the economic cycle.

FUNDAMENTAL TAILWINDS

Source: National Center for Education Statistics 2018 Table 303.25 (Data through Fall 2017). Parthenon-EY, “Strength in numbers: strategies for collaborating in a new era for higher education”, 2016.

– Public 4-year universities have averaged 1.6% annual enrollment growth since 1970. – According to a 2016 Ernst & Young study, the biggest decline in enrollment has been among colleges with fewer than 1,000 students, which account for about 40% of degree-granting institutions.

Public 4-year Universities Remain in Demand

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Since 1970 1.6% Since 1980 1.5% Since 1990 1.5% Since 2000 2.3% Since 2010 1.6%

Public 4-year University Enrollment Growth (CAGR)

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

% of Recent High School Completers (4 Year College) % of Recent High School Completers (2 Year College)

Robust demand for 4-year public universities.

Demand far exceeds available seats at universities ACC serves.

FUNDAMENTAL TAILWINDS

Source: Company data

• 1. National Center for Education Statistics 2018 Table 302.10.
• 2. National Center for Education Statistics 2018 IPEDS Data Center.

2.0x

• Avg. Applicant to Admissions

Ratio within ACC Markets2

More High School Students are Choosing to Attend 4-year Universities1

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$26,900 $31,450 $39,900

7% 7% 14%

0% 2% 4% 6% 8% 10% 12% 14% 16% $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000

4-year Public 4-year Private Non- Profit 4-year Private For- Profit Average Loan Balance ($) Default Rate (%)

– Graduates from universities served by ACC average an estimated 640% return on the average net cost of attendance.1 – According to the Institute for College Access & Success, “Young adults with only a high school diploma are almost three times as likely to be unemployed, and earn 40% less than, those with at least a bachelor’s degree.”2

High value of a college degree.

A college degree leads to higher income and greater financial security.

FUNDAMENTAL TAILWINDS

Student Loans are Manageable at 4-yr Public Schools4

$25,980 $31,990 $35,000 $54,990

13% 7% 4% 3%

0% 2% 4% 6% 8% 10% 12% 14% $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000

Less than high school completion High school completion Some college, no bachelor's degree Bachelor's or higher degree Median Annual Earnings ($) Unemployment Rate (%)

College Continues to be a High Return Investment3

Source: Company data

• 1. National Center for Education Statistics 2018 IPEDS Data Center. 30 years of the median earnings of students working 10 years after entry minus 34 years of the median earnings of high school graduates divided by the 4 year average net cost of attendance.
• 2. TICAS, “Student Debt and the Class of 2017”, September 2018.
• 3. National Center for Education Statistics 2018 Table 502.30 and Table 501.80. For persons 25-34 years old.
• 4. TICAS, “Quick Facts about Student Debt”, April 2019; Federal Student Aid an Office of the U.S. Department of Education, September 26, 2018.

5 $23,000 incremental earnings

Sub-4% default rates at Power 5 and R1 institutions

MODERNIZATION TO MEET PENT-UP DEMAND

Highly fragmented market.

ACC has a long runway for growth through consolidation of the industry.

ACC Target Market Composition ─ Power 5 conference schools ─ Carnegie R1 research institutions Fragmented Market Provides Opportunity ─ Few well capitalized companies or operators ─ Largest 25 owners cumulative market share of only 7.7% in ACC addressable markets

Source: Company data & estimates.

• 1. Student Housing Business’s list of the Top 25 Owners of Student Housing, November/December 2018.
• 2. National Center for Education Statistics 2018 IPEDS Data Center.

Other Top 25 Owners – 6.3% 478,000 beds1 ACC - 1.4% 104,000 beds1

7.0 Million Addressable Students

ACC Addressable Market2

7.5 million students, 309 Tier 1 Universities 6

MODERNIZATION TO MEET PENT-UP DEMAND

Obsolete housing supply creates opportunity.

ACC Purpose-Built

$767

average rent per month

Typical Supply

On-Campus $757 / $970

shared / private average rent per month

– The median age of existing on-campus housing exceeds 50 years old in ACC markets – primarily built for the Baby Boom generation in the 1950’s-60’s. – Majority of current stock is low density alternate housing such as absentee landlord communities and single family residences not designed for today’s student.

ACC Purpose-Built Typical Supply

Off-Campus

ACC provides a modern, purpose-built product at comparable price points to obsolete existing product.

Source: ACC research; same-store rent per occupied bed as of September 30, 2018 (Academic Year 2018/2019).

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MODERNIZATION TO MEET PENT-UP DEMAND

Diversified investment mediums.

Composition of current housing supply creates multiple avenues for long-term growth.

Consolidation via acquisitions Consolidation via partnership (P3)/ redevelopment

900,000 beds

Drive Purpose Built

800,000 beds

Pedestrian Purpose Built

1.7 million beds

On-Campus

4.1 million beds

Alternate Supply

Supply % of Supply Median Age On-Campus 22% 52 years PB – Pedestrian 11% 7 years PB – Drive 12% 11 years Alternate Supply 55% N/A

Pent-up demand met via development

Supply in 68 ACC Markets1

• 1. According to the Company’s analysis; estimated based on 2018 supply categories divided by academic year 2018/2019 enrollment within ACC’s 68 markets. Purpose Built reflects certain off-campus properties that may lease by the unit

rather than by the bed, but compete with ACC properties in the student housing market Note: ACC’s addressable market bed count groupings are extrapolated from the makeup of supply within ACC’s 68 markets.

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1.2% 0.6% 1.8% 1.3% 1.3% 0.8% 1.2% 1.5% 1.9% 1.5% 1.1% 1.4% 1.2% 1.4% 2.5% 1.9% 3.2% 3.0% 2.9% 2.2% 2.3% 2.6% 3.2% 2.7% 2.0% 2.4% 2.6% 2.3% 47% 26% 49% 39% 45% 29% 41% 45% 54% 49% 48% 50% 38% 56% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0.0% 0.4% 0.7% 1.1% 1.4% 1.8% 2.1% 2.5% 2.8% 3.2% 3.5%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E

% of ACC Markets Experiencing New Supply New Supply as a % of Enrollment

Off-Campus New Supply as a % of Enrollment in ACC Markets Experiencing New Supply Off-Campus New Supply as a % of Total Enrollment in all ACC Markets % of ACC Markets Experiencing New Supply

Limited new supply.

Annual enrollment growth rate at 4-year public schools is greater than the rate of new supply within ACC markets.

MODERNIZATION TO MEET PENT-UP DEMAND

Source: Company data

• 1. 2018 and 2019 new supply based on academic year 2018/2019 total enrollment.

New Supply in ACC Markets 2006 – 2019E1

– The new supply landscape has remained consistent in ACC markets since our IPO, amounting to only 1.3% of enrollment each year, on average. – At the current rate of new supply, the obsolete alternate student housing stock is decades away from achieving modernization.

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$1.35 $1.42 $1.50 $1.58 $1.66 $1.74 $1.82 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 $2.00 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 $33 $48 $63 $96 $140 $160 $185 $239 $324 $364 $376 $401 $410 $456 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

ACC has achieved 14 consecutive years of internal growth in same store rental rate, rental revenue, and NOI.

THE ACC ADVANTAGE

Total Wholly-Owned NOI per Year

($ millions)

• 1. Rental revenue growth based on change in Fall occupancy plus final change in rental rate as reported in the Company’s 3Q analyst package.

Over a decade of continued value creation.

Annual Dividend Per Share

Average Fall Occupancy Average Rental Rate Growth Average Rental Revenue Growth1 Average NOI Growth

97.6% 2.6% 3.4% 3.9%

Same Store Performance since IPO

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• 50.0%
• 40.0%
• 30.0%
• 20.0%
• 10.0%

0.0% 10.0% 20.0% 30.0% 40.0% 20 40 60 80 100 120 140 160 180 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Year over Year Growth Indexed Growth

4 Yr Public University Enrollment Same Store NOI Growth (Indexed) Multifamily Same Store NOI Growth (Indexed) S&P 500 Annual Return

% of Beds On-Campus

2009 2018 8% 25%

Distance to Campus (% of Beds)

< 1/2 Mile 1 Mile 1+ Miles

2009 58% 22% 20% 2018 93% 7% 0%

Cash flow stability = recession resiliency.

THE ACC ADVANTAGE

Stable Performance Through Cycles Portfolio Improvement Since Last Downturn

• Stable same store growth throughout economic cycle.
• Strategic capital recycling has further enhanced portfolio quality

relative to the last downturn.

• Consistent demand at 4-year public universities with stable

enrollment growth averaging 2.1% from 2005-2017.

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.

Note: 2018 enrollment growth based on ACC portfolio. NCES data not yet available. 1

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ACC’s technology, data and process is industry-leading.

THE ACC ADVANTAGE

Technology advantage.

Competitors ACC

Leasing Operations/ Revenue Management Investment Decision Making

Standard Deviation

Traditional Medium Targeted Ads/SEO Social Media University Relationships Proprietary LAMS and Next Gen Systems Manual Multifamily Out-

• f-the-box Apps

Lack of Industry Data Analytics Business Intelligence Portfolio Optimization Mail Website Centralized Corporate Support Brand Value Pushes Costs to Field 12

52.5% 53.2% 54.9% 55.3% 55.1% 50.0% 51.0% 52.0% 53.0% 54.0% 55.0% 56.0% 57.0% 2014 2015 2016 2017 2018

Proprietary Operating Platform Development.

– ACC developed proprietary LAMS operating platform in 2003. – Proprietary Next Gen business intelligence platform rollout is expected in 2H 2019. ACC’s Next Gen system will be revolutionary and utilize ACC’s sector leading industry data.

Scale and centralized support advantage.

ACC’s multi-asset market presence and asset management program have driven margin expansion.

THE ACC ADVANTAGE

NOI Margin History – Total Portfolio Expense control.

– Extensive employee development program. – Multiple property markets.

• Marketing efficiencies unlocked through branding.
• Margin expansion through staffing refinement.

– Traditional asset management.

• Utilities management including lighting, water, cable and

internet.

• Process and contract standardization.

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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.

THE ACC ADVANTAGE

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Management team advantage.

Senior Management Team Members began Careers as RA’s

Standard Deviation

Grass Roots Management Innovative Product Design

Focus on creating a unique sense of community through shared living at a price point that previously did not exist.

Product Diversification

“Build for the Masses, not the Classes”

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7.1x 6.7x 6.0x 5.4x 5.6x 5.8x 6.0x 6.2x 6.4x 6.6x 6.8x 7.0x 7.2x 7.4x 2005-2011 Avg. 2012-2018 Avg. Midpoint Capital Plan 2019-2023 48.3% 39.3% 36.3% 0% 10% 20% 30% 40% 50% 60% 2005-2011 Avg. 2012-2018 Avg. Midpoint Capital Plan 2019-2023

Balance Sheet Management Total Debt / Total Asset Value1 Net Debt / Adjusted EBITDA2

CONTINUAL BALANCE SHEET IMPROVEMENT

Strengthening balance sheet while executing on growth.

The Company benefits from broad access to capital, allowing balance sheet management and deleveraging while executing on growth.

Investment Grade Credit Profile

• BBB stable / Baa2 stable.
• Provides access to broadest set of capital options.
• Consistent cash flows and credit statistics.

Maintain a staggered debt maturity schedule Manage liquidity to fund capital needs

• ACC has raised $4.9 billion from capital markets

activity and dispositions since the beginning of 2015. Strong private market valuations provide source of low-cost capital via JV and/or dispositions Access to GSE’s and other secured debt provides flexibility

• 1. Total Asset Value is undepreciated book value of real estate assets and all other assets, excluding receivables, intangibles, and right of use assets, of our consolidated subsidiaries, all determined in accordance with GAAP.
• 2. Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) for the four most recently completed fiscal quarters. Includes pro forma adjustments to EBITDA to reflect all acquisitions, development deliveries, and dispositions as if such

transactions had occurred on the first day of the 12 month period presented.

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413% 254% 257% 278% 403%

0% 50% 100% 150% 200% 250% 300% 350% 400% 450% ACC RMS S&P DJIA Nasdaq

Cumulative Shareholder Total Return Since ACC IPO

ATTRACTIVE INVESTMENT OPPORTUNITY

ACC’s consistency has led to outperformance.

What an investment in ACC offers...

─ Dependable coupon-clipping dividend. ─ Recession resilient internal growth. ─ Attractive external growth opportunities.

Note: As of March 31, 2019, assumes reinvestment of dividends.

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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, 2018 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 2019 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.

Plaza on University | Orlando, FL

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The Summit | Philadelphia, PA

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