EdR (NYSE:EDR), one of the nation’s largest developers, owners and managers of collegiate housing, today announced results for the quarter ended September 30, 2013.
- Core funds from operations (“Core FFO”) was $8.7 million, or $0.08, per share/unit for the third quarter, compared to $5.9 million, or $0.06, per share/unit in the prior year;
- Same-community net operating income (“NOI”) for the quarter was $9.2 million on a 1.1% increase in revenue and a 2.8% increase in operating expenses;
- Achieved same-community revenue growth of 5.0% for the 2013/2014 lease term, with a net rental rate increase of 2.0% and a 300 basis point growth in occupancy to 94.1%;
- Completed the previously announced $56.2 million acquisition of the Retreat at State College, a 587-bed cottage community serving Penn State University;
- Acquired the Cottages on Lindberg, a 745-bed community, serving Purdue University for $36.0 million;
- Delivered five new owned development communities with 2,750 beds for an aggregate cost of $192.4 million. The communities opened 92.4% leased with four of the five communities at or above 100% occupancy; and
- Amended and upsized the revolving credit facility to $500.0 million and added a new $200 million accordion, while improving facility pricing and extending the maturity date to January 2018.
“As evidenced by the strong same-community revenue growth we achieved for the recently completed leasing cycle, the student housing business, and our Company, are performing well," stated Randy Churchey, EdR's president and chief executive officer. "Moving forward, our focus remains on completing our nearly $400 million of active development and presale opportunities while maintaining a well-capitalized balance sheet. These external growth opportunities will increase our gross assets by 18%, which when combined with the strong same-community revenue growth we achieved this lease term will provide great growth for the Company. With our elevated cost of capital it is not accretive or beneficial to our shareholders for us to issue equity or increase our leverage to make any additional net acquisitions at this time."