EdR (NYSE:EDR), one of the nation’s largest developers, owners and managers of collegiate housing, today announced results for the quarter ended June 30, 2012.
- Core funds from operations (“Core FFO”) was $11.6 million or $0.12 per share/unit for the second quarter, compared to $8.4 million or $0.11 per share/unit in the prior year;
- Same-community net operating income (“NOI”) for the quarter increased 10.9% on a 7.5% increase in revenues and a 3.8% increase in operating expenses;
- Same-community portfolio is currently 83.9% preleased for the 2012/2013 lease term, compared to 86.1% at this time last year;
- Anticipated same-community net rental rate increase of 5.0% for the 2012/2013 lease term;
- Reduced overall company leverage with debt to gross assets of 28.8% at June 30, 2012, a 18.4% reduction from 35.3% a year earlier;
- Awarded a new third-party development project at Clarion University of Pennsylvania. With a project total cost of $44.7 million, this approximate 700-bed community is anticipated to be delivered in the summer of 2014; and
- EdR’s Board of Directors increased the Company’s quarterly dividend 43% to $0.10 per share/unit, starting with the second quarter dividend that is payable on August 15, 2012.
"All lines of business continued to grow in the first half of 2012,” commented Randy Churchey, EdR's president and chief executive officer. "We are adding $362 million of owned and participating development communities this fall and next, and our pipeline of acquisitions and new developments are at all-time highs. Operationally, we achieved another quarter of double-digit same-community NOI growth, commenced three new third-party development projects and signed two new third-party management agreements."
Net Income Attributable to Common StockholdersNet income attributable to common stockholders for the quarter was $1.3 million, or $0.01 per diluted share, compared to $0.6 million, or $0.01 per diluted share, for the prior year. Improvements in same-community NOI, operating profits of new communities and lower interest expense were the main drivers of the improvement in net income.