Land & Buildings Issues “Ace The Test ACC” Presentation Outlining Urgent Need to Unlock Value for Shareholders at American Campus Communities

Rhea-AI Summary

Land & Buildings Investment Management, a significant shareholder of American Campus Communities (ACC), highlights the need for an aggressive strategy to address the company's underperformance. The presentation emphasizes ACC's trading at a substantial discount to its net asset value (NAV) and calls for actions such as asset sales and capital returns. Persistent underperformance since January 2021 has seen ACC lagging behind peers with an 18% lower return. The company aims to regain credibility by nominating a shareholder representative to the board and optimizing operational efficiencies.

Positive

• ACC has strong fundamental tailwinds with the return to campus trend.
• Opportunity to close the discount to NAV through strategic actions.

Negative

• ACC has underperformed by 18% against apartment peers and 13% against proxy peers since January 2021.
• Ongoing issues include poor capital allocation and weak core growth.

Highlights Need for Company to Make Clear it Will Do Whatever is Necessary to Capture 30% Upside From Discounted Valuation – Including Aggressively Selling Assets and Returning Capital

Believes Board Needs Additional Change, Including a Shareholder Representative, to Regain Credibility and Properly Oversee Management’s Operational and Capital Allocation Decisions

Intends to Nominate Highly Qualified Shareholder Representative for Election to the Board at Company’s 2022 Annual Meeting

Launches Website www.AceTheTestACC.com

L&B Hosting a Webcast Today at 10:00 am ET

STAMFORD, Conn.--(BUSINESS WIRE)-- Today Land & Buildings Investment Management, LLC (together with its affiliates, “Land & Buildings”), a significant shareholder of American Campus Communities, Inc. (“ACC,” or the “Company”) (NYSE:ACC), issued a presentation that details the long history of disappointing returns and performance at ACC and outlines the need for a more aggressive strategy to reverse the prolonged underperformance and drive shares to NAV.

Please join Land & Buildings’ webcast today at 10:00 am ET by clicking here.

The webcast presentation is available at www.AceTheTestACC.com.

Land & Buildings Founder and Chief Investment Officer, Jonathan Litt, said, “ACC has strong fundamental tailwinds as ‘return to campus’ is in full force yet ACC continues to trade at a material discount to its net asset value following a prolonged period of Company missteps and poor investor communications. Management and the Board need to make it clear to the investment community they will do everything in their power to close the gap to NAV.”

Highlights of the presentation include:

• Untapped Opportunity. The Company trades at a substantial discount to NAV, trading at nearly a 5% implied cap rate while private market comps are trading at 3.75% – 4.25% cap.
• Persistent Underperformance and Disappointment. Since our January 2021 cooperation agreement with the Company, ACC’s total shareholder returns have continued to lag peers – underperforming by 18% versus apartments and 13% versus proxy peers. This troubling pattern has been consistent over the past 1-, 3-, 5-, 10-years. This presentation highlights the root causes of that underperformance, including inferior capital allocation, weak core growth and poor investor communication.
• ACC Cliff Notes for Success. L&B recommends the Company communicate that the discount to NAV is unacceptable, and it will close the gap by aggressively selling assets and returning capital to shareholders, cut the fat in G&A and property operating expenses, improve revenue management, continuously evaluate all strategic options and add a shareholder representative on the Board.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211216005244/en/

Media

Sloane & Company

Dan Zacchei / Joe Germani

Dzacchei@sloanepr.com

JGermani@sloanepr.com

Investors

Innisfree M&A Incorporated

Scott Winter / Jonathan Salzberger

(212) 750-5833

Source: Land & Buildings Investment Management, LLC

FAQ

What is the current trading status of American Campus Communities (ACC)?

ACC currently trades at a substantial discount to its net asset value (NAV), with an implied cap rate of nearly 5%.

Who is advocating for changes in ACC's management?

Land & Buildings Investment Management is advocating for changes, including a shareholder representative on the board.

When did ACC enter into a cooperation agreement with Land & Buildings?

ACC entered into a cooperation agreement with Land & Buildings in January 2021.

What strategy is proposed to improve ACC's performance?

The proposed strategy includes aggressively selling assets, returning capital to shareholders, and improving operational efficiencies.

What factors contributed to ACC's underperformance?

Factors include inferior capital allocation, weak core growth, and poor investor communication.