campus crest group march investor presentation

8/3/2019 Campus Crest Group March Investor Presentation

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August 2010

March Investor Presentation


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This presentation contains certain forward-looking statements that are subject to risks and uncertainties.These forward-looking statements are based on certain assumptions, discuss future expectations,describe future plans and strategies, contain financial and operating projections or state other forward-looking information. The Companys ability to predict results or the actual effect of future events, actions,plans or strategies is inherently uncertain. Although the Company believes that the expectations reflectedin such forward-looking statements are based on reasonable assumptions, the Companys actual resultsand performance could differ materially from those set forth in, or implied by, the forward-lookingstatements. You are cautioned not to place undue reliance on any of these forward-looking statements,

which reflect the Companys views on this date. Furthermore, except as required by law, the Company isunder no duty to, and does not intend to, update any of our forward-looking statements after this date,whether as a result of new information, future events or otherwise.

This presentation does not constitute, and may not be used in connection with, an offer or solicitation byanyone in any jurisdiction in which such offer or solicitation is not permitted by law or in which the personmaking the offer or solicitation is not qualified to do so or to any person to whom it is unlawful to makesuch offer or solicitation.

Forward Looking Statements


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Investment Highlights

The Grove

at Milledgeville, GA

Experienced Team with

Value-Maximizing Platform

Compelling Market Dynamics

Modern, Well-Located Portfolio in

Solid Growth Markets

Proven Track Record with

Significant Growth Potential

Conservative Capital Structure and

Attractive Valuation

The Grove

at Nacogdoches, TX


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Echo Boom drives enrollment growth

Increasing percentage of high-schoolgraduates attending college

Increasing foreign enrollments

Increasing percentage of full-time vs.part-time students

Students taking longer to graduate

College Enrollments (1957College Enrollments (1957--2012)2012)

0

2

4

6

8

10

12

14

16

18

20

22

1950 1963 1973 1983 1993 2003 2013

Budgets constrain on-campus housinginvestment

38 states cut their educationalbudgets during the recession

Existing on-campus housing stockbecoming increasingly obsolete

Lack of construction financing isrestricting new entrants


DemandDrivers

DemandDrivers

SupplyFactors

SupplyFactors

Echo BoomEnrolling in College

Baby BoomEnrolling in College

Source: Dept. of Education, National Center for Educational Statistics

(millions)

Enrollment expected to increase by ~1.5 million students over the next 8 years

Enrollment expected to increase by ~1.5 million students over the next 8 years


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Attractive Portfolio and Growth Platform

Portfolio HighlightsPortfolio Highlights

Properties (1)

Total Units / Beds (1)

Weighted Average Age (2)

Average Distance to Campus

Occupancy (2)

27

5,048 / 13,580

2.5 years

0.6 miles

89%

(1) Includes 6 joint venture properties in which Campus Crest owns a 49.9% member interest(2) As of 2/23/2011

Newest portfolio of student housing assets

Amenity rich bed/bath parity, resort-style activities

Close proximity to campus

Barriers to entry

Lower cap-ex requirements

Proactive focus on medium-sized, high-growth markets

Markets have strong enrollment growth 7.2%average growth (3)

Less institutional competition & comparable product

Stronger tuition value proposition

(3) Source: Reported enrollment statistics from university websites;Represents enrollment growth from the academic year 2006/2007 tothe academic year 2009/2010


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Why Our Markets

Well-established university markets with protective community councils

Superior land acquisition and entitlement capabilities

Lack of available financing for local operators

Higher Barriers to Entry

Higher Barriers to Entry

On-campus atmosphere with advantages of off-campus economics

Benefits from symbiotic relationships with universities

Greater impact from marketing dollars

Unique Relationships

with Universities

Unique Relationships

with Universities

We are able to build a superior product at a lower cost because of our captive

general contractor and wholesale purchaser

Construction CostAdvantage

Construction CostAdvantage

Our markets benefit from higher enrollment growth than primary marketsStronger EnrollmentGrowth

Stronger EnrollmentGrowth


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Traditional on-campus, dormitory-style housing alternatives have generallyconsisted of shared rooms, communal bathroom facilities and extremely limited

(if any) amenities and parking

Traditional on-campus, dormitory-style housing alternatives have generallyconsisted of shared rooms, communal bathroom facilities and extremely limited

(if any) amenities and parking

The Evolution of Student Housing The Dormitory Era


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The Evolution of Student Housing Our Student Housing

Purpose-built student housing is specifically designed to appeal to modern-day college students with broad on-site amenities, enhanced privacy and a

focus on the overall lifestyle experience

Purpose-built student housing is specifically designed to appeal to modern-day college students with broad on-site amenities, enhanced privacy and a

focus on the overall lifestyle experience


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The Evolution of Student Housing State of the Art Prototype

The Grove

at San Marcos, TX

The Grove

at Huntsville, TX

The Grove

at Statesboro, GA

The Grove

atNacogdoches, TX

The Grove

atNacogdoches, TX

The Grove

at Huntsville, TX


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Apartment Features:

Private bedrooms with keyed locks

En suite bathrooms

Full furnishings and full kitchens

Modern appliances and washers/dryers

State-of-the-art technology

Ample parking

Gated entrances

On-site Amenities:

Resort-style swimming pools

Basketball and volleyball courts

Game rooms and coffee bars

Fitness centers

Community clubhouses

All of our apartment communities offer bed-bath parity, attractively furnishedunits and a variety of on-site amenities designed to appeal to the college lifestyle

All of our apartment communities offer bed-bath parity, attractively furnishedunits and a variety of on-site amenities designed to appeal to the college lifestyle

Our Properties are Attractive and Amenity-Rich


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At The Grove, we offer a fully-loaded college living experience through our consistentbranding and operating philosophy

At The Grove, we offer a fully-loaded college living experience through our consistentbranding and operating philosophy

Our Properties are Universally Branded The Grove


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Intensive asset management philosophy employed throughout our organizationIntensive asset management philosophy employed throughout our organization

Intensive Asset Management Philosophy

Regular property inspections and audits performed by asset

management team using 800 point check list

Field-focused executive management team

Vertical integration and overlap of construction management andfacilities management leads to superior asset performance

Proprietary Residence Life Programming through SCORES:

S social

C cultural

O outreach

R recreational

E educational

S spiritual

The Grove Nation culture drives excitement, customer focusand unmatched residence life experiences


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Identified 200+ potential markets & conducting due diligence on 80 sites aspotential development opportunities

Identified 200+ potential markets & conducting due diligence on 80 sites aspotential development opportunities

Identified Pipeline of Future Development Opportunities

Development site selection criteria

High enrollment growth colleges / universities

Limited competing product

Proximity to campus

Vertically integrated, highly scalable operating platform

Property & asset management

Development & construction

Wholesale supply

Prototypical roll-out

Reduces costs and shortens development period

Proven track record developed ~$500 million ofstudent housing properties


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2011 Development Projects (2011/2012 Academic Year Occupancy)

ProjectProject EnrollmentEnrollment Distance toDistance to CampusCampus Proposed UnitsProposed Units //BedsBeds EstimatedEstimated CostCost

Wholly-Owned Developments

Ft. Wayne, INIndiana University / Purdue University

13,675 1.1 miles 204 / 540 $19,926

Clarksville, TNAustin Peay State University

10,188 1.3 miles 208 / 560 $21,203

Ames, IAIowa State University

27,945

0.3 miles

216 / 584

$21,411

Columbia, MOUniversity of Missouri

32,415 0.9 miles 216 / 632 $24,931

Joint Venture Developments

Denton, TX

University of North Texas

36,123 0.8 miles 216 / 584 $24,953

Valdosta, GAValdosta State University

12,391 1.9 miles 216 / 584 $21,150

($ in thousands)($ in thousands)

We utilize a proprietary underwriting model with over 60 inputs to evaluate the relativeattractiveness of each market, which we then use to prioritize development opportunities

We utilize a proprietary underwriting model with over 60 inputs to evaluate the relativeattractiveness of each market, which we then use to prioritize development opportunities


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Total Number of Beds (All Properties)Total Number of Beds (All Properties)

Number of Properties (All Properties)Number of Properties (All Properties)

1 1

4

10

1924 273

6

95

3

6

0

10

20

30

40

2005 2006 2007 2008 2009 2010 2011E

Properties

4481,924

4,966

9,520

12,03613,580

17,064

0

5,000

10,000

15,000

20,000

2005 2006 2007 2008 2009 2010 2011E

NumberofBeds

Campus Crest has grown to over 13,500 beds over the last five years by leveraging itsplatform and brand to deliver a uniform student housing product across multiple markets

Campus Crest has grown to over 13,500 beds over the last five years by leveraging itsplatform and brand to deliver a uniform student housing product across multiple markets

Proven and Scalable Business Model

(1)

(1) 2011E includes 4 wholly-owned developments and 2 joint venture developments

(1)

Existing Properties New Openings


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Historical Weighted Average RevPOBHistorical Weighted Average RevPOB (2)(2)Historical Weighted Average OccupancyHistorical Weighted Average Occupancy (1)(1)

$448

$472 $473

$486

$420

$430

$440

$450

$460

$470

$480

$490

CY2007 CY2008 CY2009 CY2010

88.0%87.0%

83.0%88.0% 89.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

CY2007 CY2008 CY2009 CY 2010 As of

2/23/2011

Increasing Occupancy and RevPOB

(3)

Campus Crest has delivered occupancy and RevPOB growth while significantlyexpanding its portfolio

Campus Crest has delivered occupancy and RevPOB growth while significantlyexpanding its portfolio

(1) Weighted average occupancy applies to properties that are open for the full calendar year(2) Weighted average RevPOB applies to properties that are open for the full calendar year; RevPOB is defined as average total revenue

per occupied bed (includes student housing leasing and student housing services revenue)

66

1010

99

1919

55

2424

55

2424

33

2727

66

1010

99

1919

55

2424

33

2727

OpeningsOpenings

TotalTotal

OpeningsOpenings

TotalTotal


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-

$100

$200

$300

$400

$500

$600

$700

At 12/31/2010

Capitalized for growth with no maturities until 2014Capitalized for growth with no maturities until 2014

Capital Structure (Including Pro Rata Share of JointCapital Structure (Including Pro Rata Share of Joint

Venture DebtVenture Debt))

Capital Structure (Including Pro Rata Share of JointCapital Structure (Including Pro Rata Share of Joint

Venture DebtVenture Debt))

($ in millions)

Prudent Capital Structure With Fully-Financed Growth

EquityPro Rata Share of JV DebtDebt

$573.1

15.6%

(1) Revolving credit line for up to $125 million; As of 12/31/2010 the Company had drawn $42.5 million.(2) Does not include construction financing for Columbia development(3) Assumes 70% LTV using the undepreciated cost of Ellensburg, Mobile-Phase I, Nacogdoches, Abilene and Greeley

28.4%

7.7%

25.1%

InIn--Place Financing for DevelopmentsPlace Financing for DevelopmentsInIn--Place Financing for DevelopmentsPlace Financing for Developments

Amount

Revolving Credit Facility: $54(1)

Construction Facilities: $53(2)

HSRE Equity Commitment $50

JV Construction Financing $31

Potential Leverage on Unencumbered Assets(3): $70

Total Potential Liquidity $258

($ in millions)


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Over 20 years in corporate accounting and senior financial positions at both private

and public companies and Deloitte & Touche LLP

Over 33 years of experience in service driven businesses; Colonel in U.S. Army Special Forces

Joined Campus Crest as a consultant in 2009

Experienced And Proven Leadership

Ted W. RollinsCo-Founder, Co-Chairmanof the Board & ChiefExecutive Officer

25 years of real estate experience developing and operating service-enriched housing properties

Founded Campus Crest in 2004

Michael S. HartnettCo-Founder, Co-Chairmanof the Board &

Chief Investment Officer

25 years of real estate experience developing and operating service-enriched housing properties

Founded Campus Crest in 2004

Earl C. HowellPresident & ChiefOperating Officer

Donnie L. BobbittExecutive Vice President &Chief Financial Officer


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Investment Highlights

The Grove

at Milledgeville, GA

The Grove

at MobilePhase II, AL

Experienced Team with

Value-Maximizing Platform


Modern, Well-Located Portfolio in

Solid Growth Markets

Proven Track Record with

Significant Growth Potential

Conservative Capital Structure and

Attractive Valuation

campus crest group march investor presentation

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