ACC - Embedded Expectations Analysis - 2020 08 10
American Campus Communities, Inc. (ACC:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 50.3x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management has concerns about growth, various projects, and the outlook for a fall return to campusSpecifically, management may lack confidence in their ability to maintain an academically oriented environment for their residents and promote their products to all the colleges and universities. Additionally, they may lack confidence in their ability to reduce the density in modern residence hall products to more manageable numbers and sustain same-store NOI growth. Finally, they may be downplaying concerns about student returns to campus, and they appear concerned about the sustainability of project construction at the University of Southern California Health Sciences campus
American Campus Communities is a real estate investment trust focusing on the acquisition, design, financing, development, construction management, leasing, and management of student housing properties. The company has four reportable segments: Owned Properties, which includes off-campus properties that are located in close proximity to the school campus; On-Campus Participating Properties, which includes on-campus properties that are operated under long-term ground/facility leases; Development Services, which consists of development and construction management services; and Property Management Services, which includes third-party management contracts in which the company is responsible for operations.
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
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