ACC - American Campus: Student Housing Investors Should Look To The Private Market

• Student housing in the private market is a highly lucrative operation with high cash flow during the investment holding period.
• Despite increased cash flow, student housing units do not command a meaningful premium over comparable market-rate units upon sale.
• When you buy student housing in the private market, you buy it for the high yield, which is absent in American Campus Communities (ACC).
• Net Asset Value is $45.43 per share at a 5% cap rate, and this 8.2% discount to NAV is not a large enough margin of safety to warrant a buy.
• Student housing occupancy will rebound, but that does not make ACC a good deal.

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