Campus Crest Communities (NYSE:CCG), a self-administered and vertically-integrated developer and builder of student housing, is expected to price its IPO this week.
Business Overview (from prospectus)
Campus Crest Communities, Inc. is a self-managed, self-administered and vertically-integrated developer, builder, owner and manager of high-quality, purpose-built student housing. Prior to this offering, our business was conducted through Campus Crest Group, which is wholly-owned and controlled by Ted W. Rollins, our co-chairman and chief executive officer, and Michael S. Hartnett, our co-chairman and chief investment officer, and certain members of their families. We intend to elect and qualify to be taxed as a real estate investment trust, or “REIT,” for U.S. federal income tax purposes commencing with our taxable year ending December 31, 2010.
Offering: 28.3 million shares at $13 - $15 per share. Net proceeds of approximately $287.1 million will be used to reduce outstanding mortgage and construction loan indebtedness.
Revenues decreased by approximately $2.8 million to $56.6 million, for the six months ended June 30, 2010 as compared to 2009...General and administrative expenses increased from approximately $2.5 million for the six months ended June 30, 2009 to approximately $2.6 million for the six months ended June 30, 2010...Total operating expenses decreased by approximately $4.5 million to $54.2 million, for the six months ended June 30, 2010 as compared to 2009...Interest expense increased by $3.3 million to $10.7 million, for the six months ended June 30, 2010 as compared to 2009...Net loss increased by $4.3 million to $8.3 million, for the six months ended June 30, 2010 as compared to 2009...
We are subject to competition for student-tenants from on-campus housing owned by universities and colleges. On-campus student housing has inherent advantages over off-campus student housing (such as the majority of our properties) in integration with the academic community, which may cause student-tenants to prefer on-campus housing to off-campus housing. Additionally, colleges and universities may have financial advantages that allow them to provide student housing on more attractive terms than we are able to. For example, colleges and universities can generally avoid real estate taxes and borrow funds at lower interest rates than private, for profit real estate concerns, such as us. However, residence halls owned and operated by the primary colleges and universities in the markets in which we operate typically charge lower rental rates but offer fewer amenities than those offered at our properties.