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CEO Interview: Campus Crest Communities, Inc. (CCG) - Ted W. Rollins

67 WALL STREET, New York - August 22, 2011 - The Wall Street Transcript has just published its REITs Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online. Topics covered: Acquisition and Financing Costs - Real Estate New Supply - Pricing Power Outlook - Residential and Commercial REITs - Correlation Between Macroeconomy and Real Estate Companies include: Fannie Mae (FNMA.OB); Invesco Mortgage (IVR); American Campus (ACC); American Capital Agency (AGNC); and many more. In the following brief excerpt from the REITs Special Report, expert analysts discuss the outlook for the sector and for investors. Ted W. Rollins is the Co-Chairman of the board of directors and the Chief Executive Officer of Campus Crest Communities, Inc. Together with Mike Hartnett, he founded Campus Crest Group in 2004. Mr. Rollins' core focus has been on operations and finance, while working together with Mr. Hartnett to source development opportunities and oversee construction. Prior to founding Campus Crest Group, Mr. Rollins and Mr. Hartnett cofounded and managed companies that successfully developed and operated service-enriched housing properties. He began his career at Drexel Burnham Lambert as a real estate investment banker in 1985. Mr. Rollins received his BSBA from The Citadel and his MBA from the Fuqua School of Business at Duke University. TWST: Please give us a brief history of Campus Crest Communities and an overview of the company and its operations today. Mr. Rollins: We started about seven years ago. We basically looked at the student housing market, and it was apparent that there was a real need for our product - not only in primary markets, but even more so in secondary markets, which is our main focus. If you think about it in terms of any given state, you'll have a flagship campus - for example, in North Carolina, where we're based, UNC Chapel Hill is the flagship - but you'll also have a lot of great schools like UNC Wilmington, UNC Charlotte, UNC Asheville, these are all schools that need additional beds to continue to grow or to replace some obsolescent beds on campus. That really has been our primary target. We've spent seven years working on these markets, such as UNC secondary schools, or in states such as Texas, where we have a large number of properties. If you look at the industry as a whole, there are two general comments that you can make. One is that there is a limited supply. It's constrained because of the lack of capital available, and it's constrained with state budgetary cuts over the last few years. But at the same time, there is a growing demand. There are more kids going to college. They're staying longer. And although the Baby Boom's children, the Echo Boom, growth is dipping slightly over the next few years, this attendance is still at record levels. In addition to that, if you look at total enrollment, growth is continuing because the graduation rate at high schools is up. And of these graduates, a higher percentage are electing to attend college full time. In addition, foreign enrollment is on the rise. So those components are pretty compelling. TWST: I believe you recently added someone specifically to head development efforts. Would you introduce us to some of your key senior team members? Mr. Rollins: We have a great leadership team. Mike Hartnett and I started the business together. He is our Chief Investment Officer, and he has a great feel for where to put the projects and how to develop them. On our finance side we have Donnie Bobbitt. Donnie is our CFO, and he is one of the best I've ever worked with. He is very focused, and he understands the operational side of the business as well. And so he is not just another accountant that's keeping score. He's very interactive with the senior leadership team. Then we have Earl Howell, who is our President and Chief Operating Officer. Earl is a seasoned operational veteran. He's done a great job. Then we have Rob Dann, who heads our property and development companies. Rob is one of the team members who just joined us. He came from CSM Lodging. At CSM he oversaw 2,500 employees and approximately 40 properties with a wide footprint, so he has extensive experience with all facets of development and property operations. And then we have Brian Sharpe, who heads our construction company and makes the magic happen out in the field. He has, year after year, designed and improved our projects. He is the reason we have such great projects - anything from the details of the design, to integrating with our operations team to make our projects better every year, to actually delivering the projects each year. He is very passionate about what he does. In addition to these people, we have a great group at the VP level supporting us, as well as the hundreds of associates in the field that make things happen every day for our customers. With us it's all about the human element, and I can confidently say that our folks have gotten better and better every year. I would also tell you that our team and the guys I just told you about have a great ability, capacity and focus on improving us each year. For our team, it's all about being the best we can be and focusing on getting better year in and year out. TWST: Would you say that's one of your main competitive advantages? Is it offering all those amenities and that lifestyle? Mr. Rollins: Yes, I think there are several competitive advantages. First, we have tremendous buying power and cost advantages from our internal general contractor and supply company that passes along value to our residents in the form of a better project. This also creates compelling value for our investors who experience a higher return on assets. Second, we have developed a place for our residents to grow and have a fuller college experience. Our residence life programs are first rate and they create the resident experience. Third, we have some of the best and brightest people that work for us in our various entities, and they work tirelessly to continually improve our company for all its stakeholders. I think all this creates a powerful combination. The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online . The Wall Street Transcript does not endorse the views of any interviewees nor does it make stock recommendations. For Information on subscribing to The Wall Street Transcript, please call 800/246-7673