Ted Rollins - NAREIT Investor Presentation from November 2011

1. Investor Presentation
NAREIT Investor Presentation
September 2011
November 2011 August 2010
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2. Forward Looking Statements
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 Company’s 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 reflected
in such forward-looking statements are based on reasonable assumptions, the Company’s actual results
and performance could differ materially from those set forth in, or implied by, the forward-looking
statements. You are cautioned not to place undue reliance on any of these forward-looking statements,
which reflect the Company’s views on this date. Furthermore, except as required by law, the Company is
under 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 by
anyone in any jurisdiction in which such offer or solicitation is not permitted by law or in which the person
making the offer or solicitation is not qualified to do so or to any person to whom it is unlawful to make
such offer or solicitation.
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3. Investment Highlights
®
The Grove at Troy, AL
Strengthening Operations
Standardized Brand and Building Design
Vertically Integrated Enterprise
®
The Grove at Mobile—Phase I, AL
Conservative Capital Structure
Attractive Valuation
Experienced Management Team
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4. National Footprint of High-Quality Assets
Operating Portfolio Highlights
Properties (1) 33
Total Units / Beds (1) 6,324 / 17,064
Weighted Average Age (1) 2.7 years
Average Distance to Campus (1) 0.7 miles
Occupancy for 2011/12 (2) 91.2%
(1) As of September 30, 2011. Includes 21 wholly-owned, 6 joint venture and 6 new development properties that opened in August 2011
(2) As of September 30, 2011. Includes 21 wholly-owned and 6 joint venture properties, but excludes 6 new developments delivered in
August 2011
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5. Accomplishments Since IPO
 Achieved 91.2% occupancy(1) for 2011/2012 AY, a 260bp improvement from 2010/2011
Focus on Leasing  Reported 3.2% rental rate growth(1) for 2011/2012 leasing
 Developed an updated comprehensive leasing incentive and tracking program
 Added new senior management and instituted central purchasing and other cost controls,
Operational Initiatives which drive margin expansion
 Established a roving management team to ensure continuity at the property-level
 Completed 6 new developments on time and on budget for 2011/2012 AY
 Expect average initial development yield of greater than 7.25%
Development Pipeline
 Launched 6 new projects for delivery in August 2012
 Expect average initial development yield of 7.50% - 8.00%
 Accessed multiple capital sources to preserve financial flexibility and liquidity
Financing &  Expanded and converted revolver to an unsecured facility
Capital Structure  Secured $48.5 million 7-year Freddie Mac financing
 Maintained conservative leverage
(1) As of September 30, 2011. Includes 21 wholly-owned and 6 joint venture properties, but excludes 6 new developments delivered in
August 2011
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6. All Properties are Attractive and Amenity-Rich
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 furnished units
and a variety of on-site amenities designed to appeal to the college lifestyle
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7. Property Management – Refining and Improving the Process
 Standardized product allows for:
HQ
 Systematic management
Area Area Sales
Manager Manager
 Strength in centralized purchasing Roving
General
Roving Sales
Managers
that improves margins Managers
General
Manager
 Area management with formulaic Sales
Manager
allocation of responsibilities based on Maintenance
Manager
property scoring
MITs
Community
 Proprietary standardized operating Assistants (9)
programs and procedures combined with
local market adaptations
 Management “career ladder" approach
 Maximizes leasing & operational to talent development creates
efficiencies framework for organic internal sourcing
of talent
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8. Consistent and Efficient Branding & Marketing
Our properties are universally branded The Grove®
At The Grove ®, we offer a ―fully-loaded college living‖ experience through our
consistent branding and operating philosophy
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9. Leasing and Rate Improvement for Academic Year 2011/2012
Portfolio Leasing and Rate Status for 2011/2012 Academic Year
Number of 2011-2012 Leases 2010-2011 Leases Rental Rate
Property Properties Units Beds Signed(1) % Signed(1) % % Increase(2)
Wholly-Owned 21 3,920 10,528 9,605 91.2% 9,317 88.5% 2.8%
Joint Venture Properties 6 1,128 3,052 2,781 91.1% 2,719 89.1% 4.9%
Sub Total All Operating Properties 27 5,048 13,580 12,386 91.2% 12,036 88.6% 3.2%
New Developments (2011 Deliveries) 6 1,276 3,484 2,770 79.5% n/a n/a n/a
Total Portfolio 33 6,324 17,064 15,156 88.8% 12,036 88.6% 3.2%
Increased operating portfolio occupancy by 260 basis points and rental rate
by 3.2% year-over-year
(1) As of September 30, 2011 and September 30, 2010, respectively
(2) Average effective rate for 2011/2012 compared to average rate achieved in 2010/2011
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10. Strengthening Fundamentals at the Company Portfolio
9-Months Results of Same-Store Wholly-Owned Operations(1)
September 30, 2011 September 30, 2010 % Change
Total RevPOB (rental and service) $480 $480 0.0%
Average Occupancy 88.8% 88.2% 0.6%
NOI ($000s) $19,917 $18,425 8.1%
NOI Margin 51.8% 48.2% 3.6%
Continued focus on rate, expense management and occupancy
growth will drive NOI growth
(1) Represents 20 properties, as detailed in the Third Quarter 2011 Supplemental Information package
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11. Further Operational Opportunities
®
The Grove at San Angelo, TX
 Tiered
pricing within projects based
upon desirability of rooms/ units
 Cross branding
 Strategic alliance
 Increased wallet share
 Convenience
 Leading Resident Life program
®
The Grove at Jacksonville, AL
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12. Compelling Market Dynamics
• Echo Boom drives enrollment growth
• Increasing percentage of high-school graduates
College Enrollments (1957-2012)
attending college
Demand • Increasing foreign enrollments
(millions) Echo Boom
Enrolling in College
Drivers • Increasing percentage of full-time vs. part-time 22
students 20
18 Baby Boom
• Students taking longer to graduate
Enrolling in College
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14
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• Budgets constrain on-campus housing investment 10
• 38 states cut their educational budgets 8
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during the recession
Supply • Existing on-campus housing stock becoming
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2
Factors increasingly obsolete
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• Lack of construction financing is restricting new 1950 1963 1973 1983 1993 2003 2013
entrants
Source: Dept. of Education, National Center for Educational Statistics
Enrollment expected to increase by ~1.5 million students over the next 8 years
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13. Why Our Markets
Stronger Enrollment • Our markets benefit from higher enrollment growth than primary markets
Growth • 9.5% enrollment growth in our markets over four academic years
• On-campus atmosphere with advantages of off-campus economics
Unique Relationships
• Benefits from symbiotic relationships with universities
with Universities
• Greater impact from marketing dollars
• Well-established university markets with protective community councils
Higher Barriers to Entry • Superior land acquisition and entitlement capabilities
• Lack of available financing for local operators
Construction Cost • We are able to build a superior product at a lower cost because of our captive
Advantage general contractor and wholesale purchaser
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14. The Evolution of Student Housing – The Dormitory Era
Traditional on-campus, ―dormitory-style‖ housing alternatives have generally
consisted of shared rooms, communal bathroom facilities and extremely limited (if
any) amenities and parking
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15. 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
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16. Disciplined Development Process
 Site acquisition based upon on-the-
ground diligence and solid research
 Majority not actually for sale
 Development site selection criteria:
 High enrollment growth colleges/
universities
 Limited competing product
 Proximity to campus
 Track record of 33 projects,
equating to over $620 million of
investment
 Solid pipeline for growth
We utilize a proprietary underwriting model with over 60 inputs to evaluate the relative
attractiveness of each market, which we then use to prioritize development opportunities
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17. 2012/2013 Academic Year Development Projects
($ in thousands)
2012/2013 Academic Year Developments
Distance to
Total Campus Est. Cost
Project University Served Enrollment(1) (miles) Units Beds ($mm)
Wholly-Owned
The Grove at Auburn Auburn University 25,469 0.1 216 600 $26.3
The Grove at Flagstaff Northern Arizona Univ. 17,529 0.3 216 584 33.1
The Grove at Orono University of Maine 11,168 0.5 188 620 25.3
Average/Sub Total(2) 18,055 0.3 620 1,804 $84.7
Joint Venture
The Grove at Fayetteville University of Arkansas 23,199 0.5 232 632 $26.5
The Grove at Laramie University of Wyoming 10,568 0.3 224 612 24.8
The Grove at Stillwater(3) Oklahoma State Univ. 22,411 0.8 206 612 20.7
Average/Sub Total(2) 18,726 0.5 662 1,856 $72.1
Average/ Total(2) 18,391 0.4 1,282 3,660 $156.8
In addition to those listed above, we have identified 200+ potential
markets and are conducting due diligence on 80 sites
(1) All data is as of fall 2011 except for Northern Arizona University, which is as of fall 2010; from school websites
(2) Total Enrollment and Distance to Campus are averages
(3) Acquisition of existing community with 138 units and 384 beds. New development adds 68 units and 228 beds
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18. Integrated Construction & Supply Structure
 We have built the same prototypical building over 500 times
 Continually refining design
 Captive general contractor
 Control cost, quality, timing
 Captive wholesale supply
 Volume purchasing
 Cost is ~$43 per sq. ft.
We benefit from the experience and efficiencies of our standardized
building design
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19. Prudent Capital Structure
Capital Structure (Including Pro Rata Share of Joint
Enhanced Capital Structure
Venture Debt)
($ in millions)
 Extended average term to maturity of debt from 4.6 to
$700 5.4 years while decreasing the average cost of debt from
$579.5 4.8% to 4.5%(1)
$600
 Refinanced credit facility in 3Q 2011
$500  Converted to unsecured facility
 Increased size to $150mm
$400
 Decreased spread over LIBOR by 100 bps
$300  Lengthened term by approximately a year
$200  More attractive covenant package
41.5%  Demonstrated access to agency financing with inaugural
$100
Freddie Mac $48.5mm financing
-  Obtained construction loans for all new development
9/30/2011 projects
 Refinanced three joint venture construction loans with a
Debt Pro Rata Share of JV Debt Equity
term loan and received an additional commitment on
three others
(1) From December 31, 2010 to September 30, 2011; excludes construction loans
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20. Well-Managed Debt Maturities
($ in millions, except per share data)
$160.0 100.0% 100.0%
$150.0
90.0%
$140.0
$109.0
78.7% 80.0%
$120.0
72.5% 70.0%
$100.0
60.0%
53.2%
$80.0 50.0%
40.0%
$60.0 $51.1
36.1%
$46.0 $2.6
$41.5 30.5% $41.0
30.0%
$40.0
$31.5
20.0%
$5.1
17.3% $48.5
$20.0 $13.4 $14.8
10.0%
$26.4
0.0%
$0.0
$0.0 0.0%
(1)
2011 2012 2013 2014 2015 2016 2017 Thereafter
(2)
Mortgage Debt Construction Loans ProRata Share of JV Debt Senior Unsecured Revolver
Note: $2.6mm of debt classified as construction debt above represents other debt that matures in 2031
(1) Assumes extension option is exercised
(2) Pro forma for a $38.5 million term loan that closed in October 2011; proceeds were used to pay down three construction loans
due in 2011 and 2012. The Company has a commitment for an additional term loan to take out three other construction loans
19 due in 2012

21. Attractive Valuation
Price/2011E FFO(1) Implied Cap Rate(2)
30.0x
10.0%
24.5x
25.0x
7.8%
20.8x 8.0%
20.0x
6.0%
6.0% 5.3%
15.0x 13.4x
4.0%
10.0x
2.0%
5.0x
0.0x 0.0%
EDR ACC CCG CCG EDR ACC
Enterprise Value/Bed(3) Dividend Yield
($ in thousands)
8.0%
$75.0
6.6%
$66.4
$65.0 6.0%
$55.0
$50.0
4.0%
3.3%
3.1%
$45.0
$36.6
2.0%
$35.0
$25.0 0.0%
ACC EDR CCG CCG EDR ACC
Source: Public filings and research reports
Note: Closing price as of 11/10/2011
(1) SNL consensus estimates
(2) Green Street Research nominal cap rate estimates
(3) CCG includes pro rata share of Joint Venture beds – 14,601 beds; ACC excludes beds from On-Campus Participating Properties – 57,968 beds; EDR excludes
20 announced acquisitions of GrandMarc at Westberry Place and Irish Row as these have not closed – 19,774 beds

22. Experienced Leadership Team
*Ted W. Rollins • 25 years of real estate experience developing and operating service-enriched housing properties
Co-Founder, Co-Chairman of
the Board & Chief Executive • Founded Campus Crest in 2004
Officer
*Michael S. Hartnett • 25 years of real estate experience developing and operating service-enriched housing properties
Co-Founder, Co-Chairman of
the Board & Chief Investment • Founded Campus Crest in 2004
Officer
Earl C. Howell • Over 33 years of experience in service driven businesses; Colonel in U.S. Army Special Forces
President & Chief Operating
Officer • Joined Campus Crest as a consultant in 2009
*Donnie L. Bobbitt • Over 20 years in corporate accounting and senior financial positions at both private and public
Executive Vice President & companies and Deloitte & Touche LLP
Chief Financial Officer
• Joined Campus Crest in 2008
Robert M. Dann • 25-year industry veteran with significant experience in strategic planning, portfolio and asset management and
Executive Vice President & operational execution
President of CCREM & CCD
• Joined Campus Crest in 2011
Brian L. Sharpe • Over 30 years of construction experience including acting as the driving force behind company’s product
Executive Vice President & development and development of the General Contractor unit that delivers one of the lowest costs in the industry,
President of CCC combined with high quality
• Joined Campus Crest in 2005
* Denotes present at NAREIT
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23. Investment Highlights
®
The Grove at Troy, AL
Strengthening Operations
Standardized Brand and Building Design
Vertically Integrated Enterprise
Conservative Capital Structure
Attractive Valuation
Experienced Management Team
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