1283630--3/16/2007--AMERICAN_CAMPUS_COMMUNITIES

related topics

{investment, property, distribution}

{cost, regulation, environmental}

{provision, law, control}

{cost, contract, operation}

{loan, real, estate}

{cost, operation, labor}

{loss, insurance, financial}

{regulation, change, law}

{property, intellectual, protect}

{operation, natural, condition}

{debt, indebtedness, cash}

{tax, income, asset}

{acquisition, growth, future}

{interest, director, officer}

Risks Related to Our Properties and Our Business Our results of operations are subject to an annual leasing cycle, short lease-up period, seasonal cash flows, changing university admission and housing policies and other risks inherent in the student housing industry. We face significant competition from university-owned on-campus student housing, from other off-campus student housing properties and from traditional multifamily housing located within close proximity to universities. We may be unable to successfully complete and operate our properties or our third-party developed properties. We may be unable to successfully acquire properties on favorable terms. Our debt level reduces cash available for distribution and may expose us to the risk of default under our debt obligations. We may not be able to recover pre-development costs for third-party university developments. Our awarded projects may not be successfully structured or financed and may delay our recognition of revenues. We may encounter delays in completion or experience cost overruns with respect to our properties that are under construction. Our guarantees could result in liabilities in excess of our development fees. Universities have the right to terminate our participating ground leases. Changes in laws and litigation risks could affect our business. Risks Related to the Real Estate Industry Our performance and value are subject to risks associated with real estate assets and with the real estate industry. Potential losses may not be covered by insurance. Unionization or work stoppages could have an adverse effect on us. We could incur significant costs related to government regulation and private litigation over environmental matters. Existing conditions at some of our properties may expose us to liability related to environmental matters. We may incur significant costs complying with the Americans with Disabilities Act and similar laws. We may incur significant costs complying with other regulations. Joint venture investments could be adversely affected by our lack of sole decision-making authority, our reliance on co-venturers financial condition and disputes between our co-venturers and us. Risks Related to Our Organization and Structure We are recently organized and have a limited operating history. To qualify as a REIT, we may be forced to limit the activities of our TRS. Failure to qualify as a REIT would have significant adverse consequences to us and the value of our securities. To qualify as a REIT, we may be forced to borrow funds on a short-term basis during unfavorable market conditions. Our charter contains restrictions on the ownership and transfer of our stock. Certain tax and anti-takeover provisions of our charter and bylaws may inhibit a change of our control. The Maryland business statutes also impose potential restrictions on a change of control of our company. Our rights and the rights of our security holders to take action against our directors and officers are limited.

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1283630--3/16/2007--AMERICAN_CAMPUS_COMMUNITIES_INC