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, 2013.
- Core funds from operations (“Core FFO”) was $14.5 million, or $0.13, per share/unit for the second quarter, compared to $11.6 million or $0.12 per share/unit in the prior year;
- Same-community net operating income (“NOI”) for the quarter was $15.1 million on a 0.5% decline in revenue and a 2.6% increase in operating expenses;
- Same-community portfolio preleasing is 180 basis points ahead of last year with 86.6% of beds preleased for the 2013/2014 lease term, compared to 84.8% at this time last year;
- Anticipated net rental rate increase of 2.0% for the 2013/2014 lease term;
- Received final approval and completed all legal documents for the 2015 deliveries of the UK Campus Housing Revitalization Plan. Demolition is underway and construction is scheduled to commence later this fall for the 2015 delivery of 1,610 beds at a total cost of $101.2 million;
- Commenced construction on the third phase of our Storrs Center development at the University of Connecticut. This final phase, which is scheduled to open in 2014, is adjacent to the first two phases, which are both 100% preleased for this fall, and will add 116 beds in 92 apartments for a cost of $12.8 million;
- Announced the pending exercise of its purchase option for a 587-bed cottage community serving Penn State University. The $56.2 million purchase is expected to close this September;
- Completed the disposition of College Grove, an 864-bed community at Middle Tennessee State University, for $20.7 million, recognizing a book gain of $3.9 million;
- EdR strengthened its development team with the addition of Julie Skolnicki, a leader in university program management, as senior vice president of university partnerships; and
- Announced the third consecutive annual increase in the Company's dividend, a 10% increase in its quarterly dividend to $0.11 per share/unit.
"We are nearing the end of the leasing season and the efforts of our team are producing solid internal growth for this fall," commented Randy Churchey, EdR's president and chief executive officer. "At the same time, our development pipeline and external growth opportunities remain robust, and I am pleased that our Board of Directors has recognized this growth with their recent 10% increase in EdR's quarterly dividend."