USF Tampa Student Housing Rental Request 2016-2018 May 3 , 2016 - - PowerPoint PPT Presentation

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USF Tampa Student Housing Rental Request 2016-2018 May 3 , 2016 - - PowerPoint PPT Presentation

Feb 25, 2023 106 likes •210 views

USF Tampa Student Housing Rental Request 2016-2018 May 3 , 2016 Overview Without a substantive increase in rental rates for FY16/17, the USF Housing System will breach: USF BOT Debt Management Policy (1.3) Board of Governors (1.2)

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SLIDE 1

USF Tampa Student Housing Rental Request

2016-2018

May 3, 2016

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SLIDE 2

Overview

  • Without a substantive increase in rental rates for

FY16/17, the USF Housing System will breach:

– USF BOT Debt Management Policy (1.3) – Board of Governors (1.2)

  • Moody’s preferred rating coverage (1.4)
  • USF Housing rents have only increased once in 4 years

(1.35% compound average growth rate on primary inventory)

  • Expenses continue to rise with no offset of new revenue.
  • Cash flow buildings (Andros) are coming off line

regardless of construction/financing method

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SLIDE 3

Debt Service Coverage

USF has consistently met its debt service coverage ratio by reducing expenses and deferring facilities investments.

DSO / Moody’s: 1.4 BOT Guidelines: 1.3 BOG Requirement: 1.2

Potential Budget Shortfall without a rate increase:

Assumes $3 million annual deferred maintenance schedule and 1.4 schedule.

FYE 2016 FYE 2017 FYE 2018 FYE 2019 Total Operating Revenues 36,844,258 33,067,614 33,542,900 32,970,308 Total Operating Expenses 21,270,319 20,290,890 24,200,864 25,179,132 Net Income 15,573,939 12,776,724 9,342,036 7,791,176 DSO Base Lease 11,124,242 11,116,015 11,094,357 11,075,689 Debt Service Coverage Ratio 1.4 1.15 0.84 0.7 Shortfall NA

  • 2,785,697
  • 6,190,063
  • 7,714,788

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SLIDE 4

SUS Student Housing annual rent increase history

USF has only raised housing rates once in the last four years. State University Student Housing Rental Rate History of Increases

2012 2013 2014 2015 FAMU 4.00% 4.00% 4.00% 4.00% FAU NA 2.43% 1.00% 3.39% FGCU 3.50% 0.00% 0.00% 0.00% FIU 0.00% 0.00% 2.71% 0.00% FSU 5.00% 5.00% 3.00% 3.00% NCF 3.00% 0.00% 0.00% 4.00% UCF 1.97% 0.00% 0.00% 0.00% UF 4.50% 4.50% 3.00% 3.50% UNF 3.10% 4.96% 3.29% 4.32% UWF 5.98% 5.98% 2.87% 0.00% SUS Average (w/o USF) 3.45% 2.69% 1.99% 2.22% USF 0.00% 3.10% 0.00% 0.00%

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SLIDE 5

Compound Annual Growth Rate (CAGR)

Apartment Style Comparisons 2012-2015

LOCAL MARKET CAGR

Avalon Heights 5.31% The Venue at North Campus 4.69% 42 North 3.74% College Court 3.61% Malibu USF 3.28% The Province 3.23% Campus Club 1.93% Monticello 1.77% 4050 Lofts 1.61% The Social (Collegiate Hall) 1.43% Campus Lodge 0.72% Average 3.73%

STATE UNIVERSITY SYSTEM CAGR

University of West Florida 7.37% University of Central Florida 6.48% University of Florida 5.63% New College of Florida 4.00% Florida State University 3.20% Florida Atlantic University 3.01% University of North Florida 2.77% Florida A&M 1.84% Florida International University 1.83% University of South Florida St. Petersburg 1.33% Florida Gulf Coast University 0.00% University of South Florida

  • 0.66%

Average 3.39%

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SLIDE 6

Value of Living On-campus

Research indicates living on-campus improves student retention and graduation rates

  • Safety
  • Convenience (close to classes and resources)
  • Variety of housing options
  • Living Learning communities and access to faculty
  • utside the classroom
  • Academic success (graduation and retention)
  • Connection to campus life
  • Flexibility (change rooms or roommates, length of

contract, cancellation options)

First Year Live on Requirement Removed

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SLIDE 7

SUS Comparison by Type (2015-2016)

SUS Suite Double Rate UF $3060-$3729 FAU $3050-$3650 UWF $3000 FSU $2995-$3665 UNF $2830-$3150 NCF $2708 FIU $2700 UCF $2470-$2835 USF $2200 - $2826 SUS Traditional Double Rate FAMU $3275 UF $2648-$2815 NCF $2586 FSU $2550 USF $2386 UNF $2250

45% of USF inventory 12% of USF Inventory

SUS Apartment Single 4BR Rate FAU $4200-$5180 FIU $3900-$4050 FSU $3620 NCF $3525 USF $3380-$3448 UF $3174-$3429 UWF $3065-$3300 FPU $3040 UCF $2985-$4440 FGCU $2715-$2948

30% of USF Inventory

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Cost Pressures

  • Matching state/university salary & benefit

increases

Minimum wage, Admin. and Staff wage, Health premiums and other benefits

Over past five years, the number of full-time staff in Housing & Residential Education has been reduced by 5%, yet compensation and benefit obligations have increased 23% (64% compensation: $906,407 and 36% benefits: $509,854).

  • Increased deferred maintenance investment

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SLIDE 9

Impact of Andros Demolition

  • $2 million Net Decrease in cash flow by FYE 2019
  • No reduction in annual debt service

– Remaining inventory covering larger proportion of debt

  • Deferred Maintenance backlog is reduced by

$52 million

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SLIDE 10

Recommendation

Approve three year rate schedule

Fall 2016: 9.3% average (1.30 ratio) Fall 2017: 9.0% average (1.35 ratio) Fall 2018: 8.0% average (1.40 ratio)

USF rates remain competitive with SUS

SUS Suite Double Rate

UF $3060-$3729 FAU $3050-$3650 UWF $3000 FSU $2995-$3665 UNF $2830-$3150 NCF $2708 FIU $2700 UCF $2470-$2835 USF $2288 - $3313

SUS Apartment Single 4BR Rate

FAU $4200-$5180 FIU $3900-$4050 USF $3758 FSU $3620 NCF $3525 UF $3174-$3429 UWF $3065-$3300 FPU $3040 UCF $2985-$4440 FGCU $2715-$2948

SUS Traditional Double Rate

FAMU $3275 UF $2648-$2815 NCF $2586 FSU $2550 USF $2481 UNF $2250

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