Attached files
file | filename |
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8-K - Education Realty Trust, Inc. | v199790_8k.htm |
Exhibit
99.1
Contact:
Randall H. Brown,
Executive Vice
President,
CFO & Treasurer,
Education
Realty Trust
901-259-2500 rbrown@edrtrust.com
Susan Jennings, Public
Relations,
Education
Realty Trust
901-259-2506 sjennings@edrtrust.com
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EDUCATION
REALTY TRUST REPOSITIONS PORTFOLIO
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Acquires 641-Bed Property at the University of
Virginia -
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Sells Nine Communities at Smaller
Campuses -
MEMPHIS,
Tenn., October 25, 2010 —— Education Realty Trust Inc. (NYSE:EDR), a leader in
the ownership, development and management of collegiate housing, today announced
the following transactions that will result in a meaningful repositioning and
improvement of its owned portfolio of collegiate apartments.
“Over the
last ten months we have been communicating our intention to sell non-strategic
assets at attractive cap rates and recycle that equity into vibrant, younger
collegiate communities at larger universities. The purchase of The
Grandmarc at the prestigious University of Virginia, along with the sale of
these nine communities, represents solid execution of this
strategy,” stated Randy Churchey, president and chief executive officer of
Education Realty Trust. “We will continue to diligently strengthen
our balance sheet while pursuing our goal to improve the overall quality of our
portfolio which will lead to increased revenue and EBITDA growth.”
Acquisition
Education
Realty Trust completed the purchase of The Grandmarc at the Corner, a 641-bed
student community at the University of Virginia (UVA) in Charlottesville,
Virginia. UVA enrollment for the 2009/2010 academic year was
approximately 24,400. The property was opened in 2006 and is
conveniently located within two blocks of campus and “The Corner” a popular
destination for students due to the wide variety of restaurants, shopping and
entertainment venues. The purchase price was approximately $45.5
million. Related acquisition costs of approximately $1.5 million will
be expensed in the fourth quarter. The Company funded the acquisition
with existing cash and a draw on its credit facility. As of September
30, 2010, The Grandmarc was 90.8% occupied at an average monthly rental rate per
bed of approximately $670.
Dispositions
The
Company has entered into agreements to sell nine communities, including eight of
the former Place communities, for a total of $84.8 million. The sale
of the first four communities is scheduled to close by the end of the fourth
quarter 2010. The gross sales price is $38.7 million with expected
net proceeds of approximately $20.7 million after repayment of related debt of
$17.2 million and other closing costs.
The
remaining five communities are scheduled to close in the first quarter of
2011. The gross sales price is $46.1 million with expected net
proceeds of approximately $29.6 million, after repayment of related debt of
$16.1 million and other closing costs.
Non-refundable
deposits aggregating $2.0 million have been placed in escrow for all communities
being sold.
Asset
Impairment and Loan Prepayment Fees
As part
of its third quarter review of asset carrying values, the Company will recognize
an asset impairment charge of approximately $33.6 million in the third
quarter. The Company also expects to incur loan prepayment fees of
approximately $0.7 million that will be recognized upon repayment of debt in the
next two quarters.
Utilization
of Net Proceeds
Net
proceeds from the sales transactions will be used to reduce outstanding debt,
finance previously announced development projects at the University of Texas,
Johns Hopkins University and the University of Connecticut, and fund additional
development and acquisition opportunities.
Assets
to Be Sold
The nine
properties being sold had an average age of 11 years, were an average distance
of 0.7 miles to campus and served universities and colleges with an average
enrollment of approximately 15,500. As of September 30, 2010, the
portfolio had an occupancy and average monthly rental rate per bed of 95.0% and
$358, respectively.
Community
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University Served
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Design Beds
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4th
Quarter
2010:
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The
Gables
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Western
Kentucky University
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288
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Western
Place
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Western
Kentucky University
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504
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Berkeley
Place
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Clemson
University
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480
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||
The
Pointe at Southern
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Georgia
Southern University
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528
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1st
Quarter
2011:
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Clemson
Place
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Clemson
University
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288
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The
Reserve at Jacksonville
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Jacksonville
State University
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504
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The
Chase at Murray
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Murray
State University
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408
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Troy
Place
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Troy
University
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408
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The Reserve
at Martin
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University
of Tennessee at Martin
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384
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Further
information is included in the company's Form 8K filed concurrently with this
release and can be found on the Education Realty Trust website at www.educationrealty.com.
About Education Realty
Trust
Education
Realty Trust, Inc. (NYSE:EDR) is one of America's largest owners, developers and
managers of collegiate student housing. EDR is a self-administered and
self-managed real estate investment trust that owns or manages 63 communities in
23 states with more than 37,000 beds. For more information please visit the
Company's Web site at www.educationrealty.com.
CONTACT:
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Education Realty
Trust
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Randall H. Brown, Executive Vice President, CFO & Treasurer | ||
901-259-2500
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rbrown@edrtrust.com
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Public Relations | ||
Susan Jennings | ||
901-259-2506
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sjennings@edrtrust.com
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