Operating expenses increased 3.9% versus the prior year quarter. The firm also achieved 1.7% opening rental revenue growth for 2020 same store properties upon completion of the 2019-2020 academic year lease up. Results included 1.4% average rental rate growth and occupancy of 97.4% as of September 30, 2019 versus 97% for the same date prior year. Adjusted to include only the company's 55% share of the Austin portfolio, the effective rental revenue growth which flows through to FFOM is 2%.

The firm delivered five new owned development and presale development projects containing 3,159 beds into service for the 2019-2020 academic year. Totaling $405.9 million, this year's development portfolio was 98.1% occupied as of September 30, 2019.

"We are pleased with the successful delivery of five developments this quarter. This group of new assets has already contributed to the $0.02 earnings guidance raise we recently announced," said Bill Bayless, CEO of American Campus Communities. "With our target development yields of 6.25% and above, and private market values for core assets trading in the low 4% area, these assets also generated significant net asset value for our shareholders upon delivery. As we look forward to the start of a new leasing season, we see a healthy fundamental environment with Fall 2020 new supply in our markets expected to decline approximately 20% from 2019 levels."

The company has been awarded or is directly negotiating three new on-campus development projects through its public-private partnership platform. Pre-development activities are underway for these projects, which include anticipated third-party development projects with Georgetown University in Washington D.C., Texas State University in San Marcos, TX and a second phase project with Northeastern University in Boston. The transaction structure, scope, feasibility, fees and timing have not been finalized for the proposed projects.

The company also progressed with construction of its $785.8 million development pipeline with expected deliveries in 2020 through 2023. These projects are all core class-A assets and remain on track to meet targeted stabilized development yield in the range of 6.25 to 6.8%.

The company is under an access agreement and the buyer is completing final due diligence for the sale of one asset with anticipated proceeds of $100 million. In addition, ACC is in negotiations for the sale of another property with proceeds of approximately $150 million. The sale of these previously acquired assets are expected to represent a low 4% economic cap rate.

The company is maintaining its recently increased guidance range for fiscal year 2019, anticipating that FFO will be in the range of $2.61 to $2.63 per fully diluted share and FFOM will be in the range of $2.40 to $2.44 per fully diluted share. All guidance is based on the current expectations and judgment of the company's management team.