Rollins said Campus Crest continues to see increased college enrollment in America because college degrees have become something job applicants "have to have" in today's marketplace. He said his company is concentrated on tier-two schools, which is where 47% of America's undergraduate population is going to school. The average tuition at these schools is $8,000 per year, making them among the more affordable places to study.
When asked about the company's 91% occupancy rate, Rollins explained that Campus Crest has a fairly young portfolio of housing, and as the portfolio matures, occupancy rates will increase to the mid-90%s or even to 100%. He also noted that as his company continues to grow, it can do so more cost-effectively while controlling risk thanks to the fact that it owns the entire process from development to construction.
Turning to the company's balance sheet, Rollins said his company's portfolio is leveraged by 36%, which is in line with targets. He said the company uses credit swaps to manage its interest-rate risk, which may make its financials slightly more difficult to follow.
Cramer said with so few 6% yielders remaining, Campus Crest may be the right choice for investors.--Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
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