4. American Campus Communities Inc (NYSE:ACC)
Number of Hedge Fund Holders: 35
Soros Fund Management’s Stake Value: $201,469,000
American Campus Communities Inc (NYSE:ACC) is a publicly traded REIT that owns multiple student housing properties. On August 4, American Campus Communities Inc (NYSE:ACC) announced that its stockholders approved the acquisition of the company by Blackstone Real Estate Income Trust. In accordance with the terms of the merger agreement, an amount in cash equal to $65.47 per share, will be paid for American Campus Communities Inc (NYSE:ACC).
Securities filings for the second quarter of 2022 reveal that George Soros added American Campus Communities Inc (NYSE:ACC) to his portfolio by purchasing 3.12 million shares worth $201.5 million, representing 3.58% of the total securities.
According to Insider Monkey’s second quarter database, 35 hedge funds were bullish on American Campus Communities Inc (NYSE:ACC), compared to 20 funds in the prior quarter. Dmitry Balyasny’s Balyasny Asset Management is a significant position holder in the company, with nearly 2 million shares worth $128 million.
Here is what Baron Discovery Fund has to say about American Campus Communities, Inc. (NYSE:ACC) in its Q1 2022 investor letter:
“We initiated a new position in American Campus Communities, Inc. (NYSE:ACC), the nation’s largest developer, owner, and manager of high-quality student housing communities. The company’s 166 properties (approximately 112,000 beds) are located either on-campus or pedestrian-to-campus (94% of the company’s net operating income comes from properties that are within 1¤2 mile of campus) in submarkets with high barriers to entry. Emerging from a difficult COVID environment when many students took classes virtually and were not on campus, the company is now poised to benefit from a much more favorable fundamental backdrop. Over the next several years, we expect strong demand driven by growing student enrolment. Combined with limited new supply deliveries since many new developments were canceled during COVID, the net result is significant growth in occupancy, rent, and cash flow. In addition to the organic growth, we expect in the next few years, the company also has several greenfield developments that are underway and are expected to supplement growth as they open. As it relates to valuation, currently the company is trading at a discount to both private market values for comparable properties and to the publicly traded multi-family operators. We believe this valuation discrepancy will narrow as the company executes on its business plan. Following the completion of the quarterly letter, American Campus Communities agreed to be acquired by Blackstone for $65.47 per share.”
