Campus Crest Communities (CCG)

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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs:   Globe Specialty Metals   •   LogMeIn   •   Invesco Mortgage Capital   •   Medidata   •   Chemspec

 

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Remi Cossart

Campus Crest Communities (NYSE:CCG) develops, builds, manages, and owns student housing. The company is vertically integrated to include the purchase and development of the land, while also owning and managing the properties. Campus Crest owns 27 student housing properties which have an average of 2.2 years and were built for the purpose of maintaining students. Altogether, the properties contain approximately 5,048 apartments and 13,580 beds.^[1]

Campus Crest Communities sees a series of market opportunities of which it hopes to take advantage. The company expects a sustained growth in higher education attendance and the continued presence of college communities. In addition, many universities have experienced cost reduction programs or their dormitories require significant renovation. These changes will push the organizations to outsource the dormitory and residential communities to off-campus housing. Next, the highly fragmented student population prevent there from being significant downward rent pressures. Finally, the company has been able to secure attractive long-term financing through Freddie Mac and Fannie Mae.^[2]

The company completed its initial public offering of stock on the NYSE which occurred on October 13, 2010. The stock priced at $12.50, which was at the bottom of the $12.50 - $14.50 initial price range. The company offered 28.3M shares and raised $354M. The lead underwriters of the deal were Raymond James Financial (RJF), Citigroup (C), and Goldman Sachs Group (GS).^[3]

Campus Crest has experience rising total revenue figures. In 2008, its revenue was $34M, and in 2009, the figure jumped substantially to $107M. Despite these losses, the company has undergone significant net losses in earnings. In 2008, the company reported a net loss of $26M, and in 2009, the figure was a loss of $17M.^[4]

References

1. ↑ CCG S-11/A 2010 PROSPECTUS SUMMARY "Our Company" pg 1
2. ↑ CCG S-11/A 2010 PROSPECTUS SUMMARY "Market Opportunity" pg 2
3. ↑ Renaissance Capital - IPO News "Campus Crest Communities prices IPO at $12.50, the low end of the range" 13 Oct 2010
4. ↑ CCG S-11/A 2010 PROSPECTUS SUMMARY "Statement of Operations Information:" pg 20