EdR (NYSE:EDR), one of the nation’s largest developers, owners and managers of collegiate housing, today announced results for the quarter ended December 31, 2013.
- Core funds from operations (“Core FFO”) increased 25% to $0.20 per share/unit for the fourth quarter and grew 17% to $0.55 per share/unit for the full year;
- Same-community net operating income (“NOI”) for the quarter was $17.8 million, an increase of 4.2% on a 4.9% increase in revenue partially offset by a 6.0% increase in operating expenses;
- Preleasing for the 2014-2015 lease term is 550 basis points ahead of last year with the same-community portfolio 45.4% preleased. The same-community portfolio is projected to open the 2014-2015 lease term with an increase in revenue ranging from 3% to 4%, comprised of a 1% to 2% increase in occupancy and an approximate 2% increase in net rate;
- University of Kentucky ("UK") Board of Trustees approved the 2016 delivery phase of the multi-year UK campus housing revitalization plan, consisting of 1,141 beds for $83.9 million;
- Recycled capital from the sale and pending sales of $62.9 million of communities with an average distance to campus of 1.9 miles into a $54.0 million acquisition pedestrian to campus at the University of Michigan and a $27.8 million joint venture investment in a community adjacent to the University of Georgia;
- In January 2014, entered into a $187.5 million term loan with five- and seven-year tranches at an effective fixed interest rate of 3.6%; and
- 2014 full year Core FFO guidance range of $0.62 to $0.68 per share/unit, which represents an 18% increase, at the midpoint, over 2013.
"Our company and the student housing business are performing well as evidenced by the strong results for the 2013 leasing cycle and our positive preleasing velocity for 2014," stated Randy Churchey, EdR's president and chief executive officer. "Prospectively, our focus remains on completing our $433 million of active 2014 and 2015 developments and presale opportunities and closing the pending asset dispositions while maintaining a well-capitalized balance sheet. These external growth opportunities will increase our gross assets by 17%, which when combined with our strong same-community revenue growth, will provide meaningful growth in shareholder value."