AUSTIN, TX-American Campus Communities Inc. has created an at-the-market equity program, which allows the student housing REIT to sell $150 million in common stock from time to time.

The at-the-market equity program, known as an ATM program, is offered through BofA Merrill Lynch, J.P. Morgan Securities Inc. and KeyBanc Capital Markets Inc. The ATM program allows ACC to go out and raise smaller chucks of equity whenever it likes the price at which its stock is trading, says Daniel Perry, the REIT’s senior vice president of capital markets.

“This gives us flexibility to pursue external growth in a manner that keeps leverage low and minimizes our cost of capital,” Perry tells GlobeSt. “If we were to do a regular equity offering, we would have dilution from the money sitting on our balance sheet and the shares outstanding way before we need the money. With the ATM program, we can raise money as we deploy it.”

ACC intends to use the proceeds from any ATM sales for working capital and general corporate purposes including the acquisition or development of student housing properties and the reduction of debt.

Perry notes that many of ACC’s peer REITs have created ATM programs. “A lot of large multifamily companies have used an ATM program,” he says. “We’ve seen that investors accept it, and we’re comfortable with it. This is a very discreet method of issuing stock.”

The total equity offerings though the ATM program, along with the average sell price, will be noted in the company’s Q1.