EdR

 

FOURTH QUARTER 2011

SUPPLEMENTAL FINANCIAL INFORMATION

TABLE OF CONTENTS

 

Financial Highlights	1
Balance Sheet	2
Operating Results	3
General and Administrative Expense Detail	4
Funds From Operations	5
Wholly-Owned Community Operating Results	6
Wholly-Owned Community Statistics	7
Same-Community Statistics	8
Preleasing Update	9
Development Update	10
Capital Structure	11
Community Listing - Wholly-Owned	12
Investor Information	13
Definitions	14
Safe Harbor Statement	15

 

 

EdR

FINANCIAL HIGHLIGHTS

(Amounts in thousands, except per share data, unaudited)

 

OPERATING DATA:

 

		Three months ended December 31,																Year ended December 31,
		2011				2010				$ Chg				% Chg				2011				2010				$ Chg				% Chg
Same-community revenue		$	27,593			$	25,766			$	1,827				7.1	%		$	99,906			$	95,492			$	4,414				4.6	%
Total community revenue			31,976				26,784				5,192				19.4	%			109,404				96,510				12,894				13.4	%
Total revenue			35,737				31,948				3,789				11.9	%			125,447				116,701				8,746				7.5	%
Same-community net operating income			17,128				14,961				2,167				14.5	%			52,583				49,483				3,100				6.3	%
Community net operating income			20,035				15,695				4,340				27.7	%			58,794				50,217				8,577				17.1	%
Total operating income (loss)			(697	)			3,557				(4,254	)			NM				7,249				12,855				(5,606	)			-43.6	%
Net income (loss)			(5,779	)			(1,818	)			(3,961	)			NM				(11,014	)			(42,058	)			31,044				NM
Per share - basic & diluted			(0.07	)			(0.03	)			(0.04	)			NM				(0.15	)			(0.73	)			0.59				NM
Funds from operations (FFO)			10,651				5,542				5,109				92.2	%			24,470				21,264				3,206				15.1	%
Per weighted average share/unit (1)			0.12				0.09				0.03				33.3	%			0.32				0.36				(0.04	)			-11.1	%
Core funds from operations (Core FFO)			12,547				9,478				3,069				32.4	%			32,661				26,045				6,616				25.4	%
Per weighted average share/unit (1)		$	0.14			$	0.16			$	(0.02	)			-12.5	%		$	0.43			$	0.44			$	(0.01	)			-2.3	%

 

BALANCE SHEET DATA:

 

		12/31/2011				12/31/2010
Debt to gross assets			31.3	%			41.5	%
Net debt to enterprise value			22.9	%			43.9	%
Interest coverage ratio (TTM)			2.7				2.2

 

(1)

FFO and Core FFO per share/unit were computed using weighted average shares and partnership units outstanding, regardless of their dilutive impact. See page 5 for detailed calculation.

 

 

EdR

BALANCE SHEET

(Amount in thousands, except share data)

 

		December 31, 2011				December 31, 2010
		(unaudited)
Assets
Collegiate housing properties, net (1)		$	803,519			$	652,603
Collegiate housing properties - held for sale (2)			-				45,044
Assets under development			56,648				1,146
Cash and cash equivalents			75,813				6,958
Restricted cash			4,826				4,791
Other assets			37,003				26,138
Total assets		$	977,809			$	736,680
Liabilities and equity
Liabilities:
Mortgage and construction loans, net of unamortized premium/discount		$	358,504			$	367,631
Unsecured revolving line of credit			-				-
Secured revolving line of credit			-				3,700
Accounts payable and accrued expenses			31,766				18,324
Deferred revenue			14,409				12,243
Total liabilities			404,679				401,898
Commitments and contingencies			-				-
Redeemable noncontrolling interests			9,776				10,039
Equity:
Stockholders' equity:
Common stock, $0.01 par value, 200,000,000 shares authorized,
91,800,688 and 58,657,056 shares issued and outstanding
December 31, 2011 and 2010, respectively			918				587
Preferred shares, $0.01 par value, 50,000,000 shares authorized,
no shares issues and outstanding			-				-
Additional paid-in capital			662,657				414,850
Accumulated deficit			(101,708	)			(90,694	)
Total EdR stockholders' equity			561,867				324,743
Noncontrolling interests			1,487				-
Total equity			563,354				324,743
Total liabilities and stockholders' equity		$	977,809			$	736,680

 

(1)

Amount is net of accumulated depreciation of $166,336 and $145,315 as of December 31, 2011 and December 31, 2010, respectively

(2)

Amount is net of accumulated depreciation of $11,043 as of December 31, 2010.

 

 

EdR

OPERATING RESULTS

(Amounts in thousands, except per share data, unaudited)

 

		Three Months Ended December 31,												Year Ended December 31,
		2011				2010				$ Change				2011				2010				$ Change
Revenues:
Collegiate housing leasing revenue		$	31,976			$	26,784			$	5,192			$	109,404			$	96,510			$	12,894
Third-party development services			622				808				(186	)			4,103				2,483				1,620
Third-party management services			911				854				57				3,336				3,189				147
Operating expense reimbursements			2,228				3,502				(1,274	)			8,604				14,519				(5,915	)
Total revenues			35,737				31,948				3,789				125,447				116,701				8,746
Operating expenses:
Collegiate housing leasing operations			11,941				11,089				852				50,610				46,293				4,317
Development and management services (1)			1,392				1,369				23				5,506				5,268				238
General and administrative (1)			2,876				2,678				198				10,421				9,695				726
Severance, development pursuit and acquisition costs			336				1,693				(1,357	)			595				2,438				(1,843	)
Ground leases			1,401				1,016				385				5,498				1,528				3,970
Depreciation and amortization			8,401				7,044				1,357				29,105				25,021				4,084
Loss on impairment of collegiate housing assets			7,859				-				7,859				7,859				-				7,859
Reimbursable operating expenses			2,228				3,502				(1,274	)			8,604				13,603				(4,999	)
Total operating expenses			36,434				28,391				8,043				118,198				103,846				14,352
Operating income (loss)			(697	)			3,557				(4,254	)			7,249				12,855				(5,606	)
Nonoperating expenses:
Interest expense			4,415				5,023				(608	)			18,242				19,787				(1,545	)
Amortization of deferred financing costs			314				284				30				1,244				1,192				52
Interest income			(46	)			(13	)			(33	)			(175	)			(414	)			239
Loss on extinguishment of debt			-				-				-				351				-				351
Total nonoperating expenses			4,683				5,294				(611	)			19,662				20,565				(903	)
Loss before equity in earnings (losses) of unconsolidated entities, income taxes and discontinued operations			(5,380	)			(1,737	)			(3,643	)			(12,413	)			(7,710	)			(4,703	)
Equity in earnings (losses) of unconsolidated entities			(39	)			(18	)			(21	)			(447	)			(260	)			(187	)
Loss before income taxes and discontinued operations			(5,419	)			(1,755	)			(3,664	)			(12,860	)			(7,970	)			(4,890	)
Less: Income tax (benefit) expense			183				175				8				(95	)			442				(537	)
Loss from continuing operations			(5,602	)			(1,930	)			(3,672	)			(12,765	)			(8,412	)			(4,353	)
Income (loss) from discontinued operations			2				308				(306	)			1,990				(33,879	)			35,869
Net loss			(5,600	)			(1,622	)			(3,978	)			(10,775	)			(42,291	)			31,516
Less: Net income (loss) attributable to the noncontrolling interests			179				196				(17	)			239				(233	)			472
Net loss attributable to EdR		$	(5,779	)		$	(1,818	)		$	(3,961	)		$	(11,014	)		$	(42,058	)		$	31,044
Earnings per share information:
Net loss attributable to EdR common shareholders per share - basic and diluted		$	(0.07	)		$	(0.03	)		$	(0.04	)		$	(0.15	)		$	(0.73	)		$	0.58
Weighted-average common shares outstanding - basic and diluted			85,790				58,714								75,485				57,536

 

(1) See note on page 4 regarding presentation of general and administrative costs.

 

 

EdR

General and Administrative Expense Detail

(Amounts in thousands, except per share data, unaudited)

 

Note:

This schedule provides more clarity on the composition of our general and administrative costs. Historically we have presented all general and administrative costs, including regional and corporate costs of supporting our communities, as one line in our income statement. However, beginning in 2012 we intend to report the management services - owned G&A costs as part of our collegiate housing operating costs and not as part of G&A. We believe the new presentation will improve comparability within the industry and provide a better reflection of the total cost to operate a property. If this new presentation had been implemented for all periods presented, our same-community operating expenses per bed on page 8 would have been $194 and $198 and the same-community operating margins would have been 58.2% and 54.1% for the fourth quarter of 2011 and 2010, respectively. And on a year to date basis, operating expenses per bed would have been $216 and $210 and the operating margins would have been 48.4% and 47.6% for 2011 and 2010, respectively.

 

		Three Months Ended December 31,												Year Ended December 31,
		2011				2010				$ Change				2011				2010				$ Change
Management services - third-party (1)		$	684			$	642			$	42			$	2,667			$	2,553			$	114
Development consulting services			708				727				(19	)			2,839				2,715				124
Development and management services - third-party			1,392				1,369				23				5,506				5,268				238
Management services - owned (1)			1,080				1,012				68				4,206				4,028				178
Corporate general and administrative			1,796				1,666				130				6,215				5,667				548
General and administrative - non third-party			2,876				2,678				198				10,421				9,695				726
Total general and administrative expense		$	4,268			$	4,047			$	221			$	15,927			$	14,963			$	964
Severance and related		$	-			$	40			$	(40	)		$	-			$	740			$	(740	)
Development pursuit			75				210				(135	)			(146	)			231				(377	)
Acquisition costs			261				1,443				(1,182	)			741				1,467				(726	)
											-												-
Total severance, development pursuit and acquisition costs		$	336			$	1,693			$	(1,357	)		$	595			$	2,438			$	(1,843	)

 

(1)

Management services owned and third-party represents costs related to regional managers, accounting, and other support staff necessary to oversee, manage and support the operation of our communities and those we manage for third-parties.

 

 

EdR

FUNDS FROM OPERATIONS

(Amounts in thousands, except per share data, unaudited)

 

		Three months ended December 31,												Year ended December 31,
		2011				2010				Change				2011				2010				Change
Net loss attributable to EdR		$	(5,779	)		$	(1,818	)		$	(3,961	)		$	(11,014	)		$	(42,058	)		$	31,044
Gain on sale of collegiate housing assets (1)			-				(611	)			611				(2,388	)			(611	)			(1,777	)
Loss on impairment of collegiate housing assets (1) (2)			7,859				-				7,859				7,859				33,610				(25,751	)
Real estate related depreciation and amortization			8,304				7,664				640				29,101				29,940				(839	)
Equity portion of real estate depreciation and amortization on equity investees			83				111				(28	)			412				479				(67	)
Equity portion of loss on sale of student housing property on equity investees			-				-				-				256				137				119
Noncontrolling interests			184				196				(12	)			244				(233	)			477
Funds from operations ("FFO")			10,651				5,542				5,109				24,470				21,264				3,206
FFO adjustments:
Loss on extinguishment of debt (1)			-				1,426				(1,426	)			757				1,426				(669	)
Acquisition costs			261				1,443				(1,182	)			741				1,467				(726	)
Straight-line adjustment for ground leases (3)			1,051				721				330				4,208				984				3,224
Reorganization/severance costs, net of taxes			-				24				(24	)			-				447				(447	)
FFO adjustments:			1,312				3,614				(2,302	)			5,706				4,324				1,382
FFO on Participating Developments:(4)
Interest on loan to Participating Development			460				217				243				1,598				329				1,269
Development fees on Participating Development, net of costs and taxes			124				105				19				887				128				759
FFO on Participating Developments			584				322				262				2,485				457				2,028
Core funds from operations ("Core FFO")		$	12,547			$	9,478			$	3,069			$	32,661			$	26,045			$	6,616
FFO per weighted average share/unit (5)		$	0.12			$	0.09			$	0.03			$	0.32			$	0.36			$	(0.04	)
Core FFO per weighted average share/unit (5)		$	0.14			$	0.16			$	(0.02	)		$	0.43			$	0.44			$	(0.01	)
Weighted average shares/units (5)			86,901				59,825				27,076				76,596				58,737				17,859

 

(1)

All of or a portion of these amounts may be included in discontinued operations and may not be visible on the face of our statement of operations on page 3.

(2)

In October 2011, NAREIT communicated to its members that the exclusion of impairment write-downs of depreciable real estate is consistent with the definition of FFO and prior periods should be restated to be consistent with this guidance. Accordingly, we have restated all periods presented to reflect the current guidance.

(3)

This represents the straight-line rent expense adjustment required by GAAP related to ground leases at two communities. As ground lease terms range from 40 to 99 years, the adjustment to straight-line these agreements becomes material to our operating results, distorting the economic results of the communities. For the three months and year ended December 31, 2011, the adjustment includes $988 and $3,976, respectively, related to GrandMarc at the Corner at the University of Virginia and $56 and $226, respectively, related to University Village on Colvin in Syracuse.

(4)

FFO on participating developments represents the economic impact of interest and fees not recognized in net income due to the Company having a participating investment in the third-party development. The adjustment for development fees is calculated under the same percentage of completion method of accounting used for third-party development fees. The adjustment for interest income is based on terms of the loan.

(5)

FFO and Core FFO per weighted average share/unit were computed using the weighted average of all shares and partnership units outstanding, regardless of their dilutive impact.

 

 

EdR

WHOLLY-OWNED COMMUNITY OPERATING RESULTS

(Amounts in thousands, unaudited)

 

		Three Months Ended December 31,																Year Ended December 31,
		2011				2010				$ Change				% Change				2011				2010				$ Change				% Change
Revenues
Same-communities		$	27,593			$	25,766			$	1,827				7.1	%		$	99,906			$	95,492			$	4,414				4.6	%
New-communities (1)			4,383				1,018				3,365				NM				9,498				1,018				8,480				NM
Total revenues			31,976				26,784				5,192				19.4	%			109,404				96,510				12,894				13.4	%
Operating expenses (2)
Same-communities			10,465				10,805				(340	)			-3.1	%			47,323				46,009				1,314				2.9	%
New-communities (1)			1,476				284				1,192				NM				3,287				284				3,003				NM
Total operating expenses			11,941				11,089				852				7.7	%			50,610				46,293				4,317				9.3	%
Net operating income
Same-communities			17,128				14,961				2,167				14.5	%			52,583				49,483				3,100				6.3	%
New-communities (1)			2,907				734				2,173				NM				6,211				734				5,477				NM
Total net operating income		$	20,035			$	15,695			$	4,340				27.7	%		$	58,794			$	50,217			$	8,577				17.1	%

 

NOTE: This table excludes the following properties, which are classified within discontinued operations on the accompanying consolidated statements of operations: Reserve at Clemson (sold in November 2010), The Gables, Western Place, Berkeley Place and the Pointe at Southern (all sold in December 2010), and Troy Place, The Reserve at Jacksonville, The Reserve at Martin, The Chase at Murray and Clemson Place (all sold in January 2011), Collegiate Village and Clayton Station (both sold in Q2 2011).

 

(1) See page 12 of this supplement for a listing of which communities are categorized as same-communities and which are new communities.

(2) Represents community-level operating expenses excluding management fees, depreciation, amortization, ground lease expense and impairment loss.

 

 

EdR

WHOLLY-OWNED COMMUNITY STATISTICS

 

		Three Months Ended December 31,												Year Ended December 31,
		2011				2010				Change				2011				2010				Change
Occupancy
Physical			94.8	%			93.4	%			140	bps			91.7	%			90.4	%			130	bps
Economic			94.6	%			93.7	%			90	bps			87.4	%			86.6	%			80	bps
NarPAB		$	463			$	416				11.4	%		$	406			$	378				7.4	%
Other income per avail. bed		$	22			$	19				14.2	%		$	25			$	23				8.7	%
RevPAB		$	485			$	435				11.5	%		$	431			$	401				7.5	%
Operating expense per bed		$	181			$	180				0.6	%		$	199			$	192				3.6	%
Operating margin			62.7	%			58.6	%			406	bps			53.7	%			52.0	%			171	bps
Design Beds			65,916				61,566				7.1	%			253,691				240,508				5.5	%

 

NOTE: Operating statistics for all periods presented exclude communities classified as discontinued operations. See note on Pg. 6.

 

 

 

 

EdR

SAME-COMMUNITY STATISTICS

 

		Three Months Ended December 31,												Year Ended December 31,
		2011				2010				Change				2011				2010				Change
Occupancy
Physical			94.4	%			93.4	%			100	bps			91.7	%			90.4	%			130	bps
Economic			95.8	%			93.8	%			200	bps			87.8	%			86.3	%			150	bps
NarPAB		$	443			$	414				7.0	%		$	395			$	377				4.8	%
Other income per avail. bed		$	20			$	18				9.6	%		$	23			$	23				0.0	%
RevPAB		$	463			$	432				7.1	%		$	418			$	400				4.6	%
Operating expense per bed		$	175			$	181				-3.1	%		$	198			$	193				2.9	%
Operating margin			62.1	%			58.1	%			400	bps			52.6	%			51.8	%			80	bps
Design Beds			59,658				59,643				0.0	%			238,641				238,585				0.0	%

 

NOTE: Operating statistics for all periods presented exclude communities classified as discontinued operations. See note on Pg. 6.

 

 

 

EdR

2012/2013 PRELEASING UPDATE AS OF FEBRUARY 20TH

 

				2012-2013								2011-2012								Projected								September 30, 2011
Community		Primary University		Leases				%				Leases				%				Rate Increase				Design Beds				Opening Occupancy
Campus Creek		University of Mississippi			331				52.0	%			220				34.6	%			7.3	%			636				100.0	%
University Village on Colvin		Syracuse University			287				66.4	%			251				58.1	%			5.4	%			432				99.8	%
The Pointe		Pennsylvania State University			947				96.2	%			917				93.2	%			5.3	%			984				100.0	%
The Commons		Florida State University			99				13.5	%			98				13.4	%			5.1	%			732				97.7	%
The Pointe at South Florida		University of South Florida			205				20.5	%			209				20.9	%			5.0	%			1,002				98.4	%
Cape Trails		Southeast Missouri State University			190				52.8	%			186				51.7	%			4.9	%			360				100.0	%
Carrollton Crossing		University of West Georgia			159				47.3	%			169				50.3	%			4.9	%			336				100.0	%
The Reserve at Columbia		University of Missouri			221				32.7	%			354				52.4	%			4.7	%			676				99.9	%
The Reserve on Frankford		Texas Tech University			211				28.6	%			115				15.6	%			4.6	%			737				97.0	%
Wertland Square		University of Virginia			126				82.9	%			152				100.0	%			4.5	%			152				100.0	%
Jefferson Commons		University of Virginia			58				70.7	%			82				100.0	%			4.5	%			82				100.0	%
Pointe West		University of South Carolina			98				20.4	%			80				16.7	%			4.4	%			480				98.1	%
The Reserve at Athens		University of Georgia			382				62.4	%			267				43.6	%			4.3	%			612				99.7	%
The Reserve on South College		Auburn University			184				31.9	%			158				27.4	%			4.3	%			576				100.0	%
The Reserve on Perkins		Oklahoma State University			194				26.5	%			183				25.0	%			4.2	%			732				97.0	%
Campus Lodge		University of Florida			460				41.3	%			378				33.9	%			4.1	%			1,115				96.8	%
The Avenue at Southern		Georgia Southern University			76				12.2	%			100				16.0	%			3.9	%			624				96.8	%
Commons on Kinnear		The Ohio State University			275				54.8	%			250				49.8	%			3.7	%			502				100.0	%
The Commons at Knoxville		University of Tennessee			189				26.7	%			155				21.9	%			3.7	%			708				93.8	%
The Reserve at Saluki Pointe		Southern Illinois University			280				36.5	%			228				29.7	%			3.7	%			768				98.8	%
GrandMarc at the Corner		University of Virginia			323				50.4	%			368				57.4	%			3.6	%			641				89.4	%
Players Club		Florida State University			313				93.2	%			316				94.0	%			3.5	%			336				100.0	%
The Lofts		University of Central Florida			196				26.8	%			218				29.9	%			3.4	%			730				97.8	%
NorthPointe		University of Arizona			121				13.3	%			25				2.7	%			3.0	%			912				93.9	%
University Towers		North Carolina State University			199				20.9	%			255				26.8	%			3.0	%			953				100.0	%
River Pointe		University of West Georgia			72				14.3	%			66				13.1	%			2.2	%			504				93.7	%
College Station at West Lafayette		Purdue University			403				42.0	%			424				44.2	%			2.0	%			960				95.7	%
College Grove		Middle Tennessee State University			198				22.9	%			91				10.5	%			1.3	%			864				85.1	%
The Reserve at Star Pass		University of Arizona			142				13.9	%			72				7.1	%			0.5	%			1,020				76.9	%
The Reserve on West 31st		University of Kansas			158				22.0	%			191				26.6	%			0.5	%			719				85.7	%
The Pointe at Western		Western Michigan University			213				24.3	%			223				25.5	%			-2.0	%			876				76.3	%
Same-communities					7,310				35.2	%			6,801				32.8	%			3.5	%			20,761				94.7	%
Irish Row		University of Notre Dame			240				73.6	%			N/A	(1)			N/A	(1)							326				N/A	(1)
Lotus Lofts		University of Colorado, Boulder			28				70.0	%			N/A	(1)			N/A	(1)							40				N/A	(1)
The Oaks on the Square		University of Conneticut			153				61.2	%			N/A	(1)			N/A	(1)							250				N/A	(1)
The Reserve on Stinson		University of Oklahoma			237				38.7	%			150				24.5	%							612				97.7	%
GrandMarc at Westberry Place		Texas Christian University			75				13.3	%			N/A	(1)			N/A	(1)							562				N/A	(1)
University Village Towers		UC Riverside			67				12.1	%			75				13.5	%							554				86.6	%
East Edge		Univeristy of Alabama			61				7.9	%			N/A	(1)			N/A	(1)							774				N/A	(1)
Westminster House		University of California at Berkeley			9				5.4	%			N/A	(1)			N/A	(1)							167				75.8	%
Campus West		Syracuse University			9				2.9	%			N/A	(1)			N/A	(1)							312				N/A	(1)
3949 Lindell		Saint Louis University			233				91.0	%(2)			N/A	(1)			N/A	(1)							256				N/A	(1)
New-communities					1,112				28.9	%			225												3,853
Wholly-owned communities					8,422				34.2	%			7,026												24,614

 

(1)

Prior year leasing and opening occupancy data is not included for communities under development or for newly acquired communities where reliable information is not available.

(2)

3949 Lindell is currently leased as a conventional apartment community. As such, the leases do not currently follow an academic term like our existing portfolio. We will be converting this property to student leases over the next 24 months. The current lease percentage respresents the community's current occupancy. We expect the community to be approximately 91% leased in the fall.

 

 

EdR

DEVELOPMENT UPDATE

(Amounts in thousands except bed counts)

 

COMPANY OWNED PROJECTS

 

Project		Project Type		Bed Count		Estimated Start Date				Anticipated Completion Date				Total Project Development Cost				EdR's Ownership Percentage				EdR's Share of Development Cost				EdR Equity Funded to 12/31/2011				EdR Equity to be Funded
Syracuse University - Campus West		ONE Plan		312		In progress				Summer 2012				$	29,747				100	%		$	29,747			$	4,958			$	9,916
University of Alabama		Joint Venture		774		In progress				Summer 2012					41,350				90	%			37,215				7,763				-
University of Connecticut - Storrs Center Phase I		Wholly Owned		250		In progress				Summer 2012					24,240				100	%			24,240				14,922				-
Total - 2012 Deliveries				1,336											95,337								91,202				27,643				9,916
University of Connecticut - Storrs Center Phase II		Wholly Owned		250		In progress				Summer 2013					24,239				100	%			24,239				-				-
The University of Texas at Austin		ONE Plan		622		In progress				Summer 2013					63,993				100	%			63,993				6,269				57,724
University of Mississippi		Joint Venture		668		Spring 2012				Summer 2013					36,700				70	%			25,690				-				7,707
University of Colorado - Lotus Lofts		Wholly Owned		239		Spring 2012				Summer 2013					19,732				100	%			19,732				-				19,785
University of Kentucky - Haggin Field Honors		ONE Plan		601		Spring 2012				Summer 2013					25,794				100	%			25,794				-				25,794
Total - 2013 Deliveries				2,380											170,458								159,448				12,241				111,010
Total Owned Projects				3,716										$	265,795							$	250,650			$	39,884			$	120,926

 

PARTICIPATING PROJECTS ⁽¹⁾

 

Project		Bed Count				Estimated Start Date				Anticipated Completion Date				Project Development Cost				Total Project Fees				Fees Earned Prior Year				Fees Earned Year Ended December 31, 2011				Remaining Fees to Earn
Johns Hopkins Graduate Housing			572			In progress				Summer 2012					60,700			$	2,122			$	304			$	1,579			$	239

THIRD-PARTY PROJECTS

 

Project		Bed Count				Estimated Start Date				Anticipated Completion Date				Project Development Cost				Total Project Fees				Fees Earned Prior Year (2)				Fees Earned Year Ended December 31, 2011 (2)				Remaining Fees to Earn
East Stroudsburg University - Pennsylvania			969			In progress				January 2012					59,491				2,246				232				1,886				128
Mansfield University of Pennsylvania			634			In progress				January 2012					35,031				1,449				52				1,362				35
Projects Under Construction - Total			1,603												94,522				3,695				284				3,248				163
Bloomsburg University of Pennsylvania			500			Summer 2013				Summer 2014					TBD				TBD				-				-				-
West Chester University of Pennsylvania Phase II			569			Summer 2013				Summer 2014					TBD				TBD				-				-				-
Recently Awarded Projects - Total			1,069												-				-				-				-				-
Total Third-Party Projects			2,672											$	94,522			$	3,695			$	284			$	3,248			$	163

 

NOTE:

The initiation and completion of an awarded project that has not begun construction is contingent upon execution of transactional documents, including such items as development agreements and ground leases, and obtaining financing.

 

(1)

Participating projects are third-party development projects the Company has a significant investment in but does not own. The Company earns fees on these projects, however, in accordance with GAAP the fees are deferred and not recognized in its operating statements until its investment is recovered. The Company includes the earned fees in computing its Core FFO. See page 5.

(2)

Amount may not tie to third-party development services revenue on the statement of operations as this schedule only includes fees earned on projects that are in progress.

 

 

EdR

CAPITAL STRUCTURE, as of December 31, 2011

(dollars in thousands)

 

Total Debt to Gross Assets
Debt (1)		$	358,495
Gross Assets (2)			1,144,145
Debt to Gross Assets			31.3	%
Interest coverage (TTM)			2.7	x
Net Debt to EBITDA (TTM)			5.7	x

 

Net Debt to Enterprise Value

Net Debt (1)		$	282,682
Market Equity (3)			952,353
Enterprise Value		$	1,235,035
Net Debt to Enterprise Value			22.9	%

 

Total Debt Outstanding

		Principal				Weighted Average								Average Term
		Outstanding				Interest Rate				%				to Maturity
Fixed Rate - Mortgage Debt (1)		$	285,794				5.96	%			79.7	%			4.00	years
Variable Rate - Mortgage Debt			36,930				4.85	%			10.3	%			1.54	years
Variable Rate - Construction Debt			35,771				1.92	%			10.0	%			8.00	years
Total / Weighted Average		$	358,495				5.44	%			100.0	%			4.15	years

 

Future Maturities

Fiscal Year Ending		Amortization				Maturities				Total				Percentage
2012		$	4,223			$	48,065			$	52,288				14.6	%
2013			12,534				25,000				37,534				10.4	%
2014			15,269				50,299				65,568				18.3	%
2015			3,445				8,035				11,480				3.2	%
2016			2,393				65,258				67,651				18.9	%
Thereafter			37,648				86,326				123,974				34.6	%
Mortgage Debt (1)			75,512				282,983				358,495				100.0	%
Revolving Credit Facility			-				-				-
Gross Debt (1)		$	75,512			$	282,983				358,495
Less Cash											75,813
Net Debt										$	282,682

 

(1)

Excludes unamortized debt premium of $9K.

(2)

Excludes accumulated depreciation of $166,336 as of December 31, 2011.

(3)

Market equity includes 91,983,188 shares of the Company's common stock and 1,110,995 operating partnership units and is calculated using $10.23 per share, the closing price of the Company's common stock on December 31, 2011.

 

 

EdR

COMMUNITY LISTING - WHOLLY-OWNED

 

Name

Primary University Served

Acquisition Date

# of Beds

Name

Primary University Served

Acquisition Date

# of Beds

Players Club

Florida State University

Jan ’05

336

College Grove

Middle Tennessee State University

Apr ’05

864

The Commons

Florida State University

Jan ’05

732

Campus Lodge

University of Florida

Jun ’05

1,115

University Towers

North Carolina State University

Jan ’05

953

The Reserve on South College

Auburn University

Jul ’05

576

The Reserve on Perkins

Oklahoma State University

Jan ’05

732

Cape Trails

Southeast Missouri State University

Jan ’06

360

The Pointe

Pennsylvania State University

Jan ’05

984

Carrollton Crossing

University of West Georgia

Jan ’06

336

College Station at West Lafayette

Purdue University

Jan ’05

960

River Pointe

University of West Georgia

Jan ’06

504

The Reserve on Frankford

Texas Tech University

Jan ’05

737

The Avenue at Southern

Georgia Southern University

Jun ’06

624

Commons on Kinnear

The Ohio State University

Jan ’05

502

The Reserve at Saluki Pointe

Southern Illinois University

Aug '08, Aug '09

768

NorthPointe

University of Arizona

Jan ’05

912

University Village on Colvin

Syracuse University

Aug '09

432

The Reserve at Star Pass

University of Arizona

Jan ’05

1,020

Total Same-Community

19,886

The Lofts

University of Central Florida

Jan ’05

730

The Reserve at Athens

University of Georgia

Jan ’05

612

GrandMarc at The Corner

University of Virginia

Oct '10

641

The Reserve on West 31st

University of Kansas

Jan ’05

719

Wertland Square

University of Virginia

Mar ’11

152

The Reserve at Columbia

University of Missouri

Jan ’05

676

Jefferson Commons

University of Virginia

Mar ’11

82

The Pointe at South Florida

University of South Florida

Jan ’05

1,002

Westminster House

University of California, Berkeley

May ’11

167

The Commons at Knoxville

University of Tennessee

Jan ’05

708

University Village Towers

University of California, Riverside

Sept '11

554

The Pointe at Western

Western Michigan University

Jan ’05

876

Lotus Lofts

University of Colorado, Boulder

Nov '11

40

Campus Creek

University of Mississippi

Feb ’05

636

Irish Row

University of Notre Dame

Nov '11

326

Pointe West

University of South Carolina

Mar ’05

480

GrandMarc at Westberry Place

Texas Christian University

Dec '11

562

3949 Lindell

Saint Louis University

Dec '11

256

New-Community

2,780

Total Wholly-Owned

22,666

 

 

EdR

INVESTOR INFORMATION

 

Executive Management
Randy Churchey		Chief Executive Officer
Randy Brown		Chief Financial Officer
Tom Trubiana		Chief Investment Officer
Christine Richards		Chief Operating Officer
Corporate Headquarters		Investor Relations
EdR		ICR, LLC
530 Oak Court Drive, Suite 300		Brad Cohen
Memphis, TN  38117		(203) 682-8211
(901) 259-2500

 

Covering Analysts

 

Firm		Analyst		Contact #
Bank of America - Merrill		Jana Galan		(646) 855-3081
Green Street Advisors		Andrew J. McCulloch		(949) 640-8780
Hilliard Lyons		Carol Kemple		(502) 588-1839
Janney Capital Markets		Andrew DiZio		(215) 665-6439
JMP Securities		Mitch Germain		(212) 906-3546
J.P. Morgan Securities Inc.		Anthony Paolone		(212) 622-6682
Keefe, Bruyette & Woods		Taylor Schimkat		(212) 887-3885
KeyBanc Capital Markets		Karin A. Ford		(917) 368-2293
Morgan Keegan & Company		Stephen Swett		(212) 508-7585
Robert W. Baird & Co., Inc.		Paula Poskon		(703) 821-5782
Sandler O'Neill + Partners, L.P.		Alex Goldfarb		(212) 466-7937
Stifel Nicolaus & Company Inc.		Rod Petrik		(443) 224-1306
UBS Securities		Russ Nussbaum		(212) 713-2484

 

 

EdR

DEFINITIONS

 

Physical occupancy

Represents a weighted average of the month end occupancies for each month included in the period reported.

 

Economic occupancy

Represents the effective occupancy calculated by taking net apartment rent accounted for on a GAAP basis for the respective period divided by potential rent for the respective period.

 

Net apartment rent per available bed (NarPAB)

Represents GAAP net apartment rent for the respective period divided by the sum of the design beds in the portfolio for each month included in the period reported.

 

Other income per available bed

Represents other GAAP-based income for the respective period divided by the sum of the design beds in the portfolio for each of the included months. Other income includes service/app fees, late fees, termination fees, parking fees, transfer fees, damage recovery, utility recovery, and other misc.

 

Revenue per available bed (RevPAB)

Represents total revenue (net apartment rent plus other income) for the respective period divided by the sum of the design beds in the portfolio for each month included in the period reported.

 

Operating expense per bed

Represents community-level operating expenses excluding management fees, depreciation and amortization.

 

Design beds

Represents the sum of the monthly design beds in the portfolio during the period.

 

Same community

Includes communities that have been owned for more than a year as of the beginning of the current fiscal year.

 

 

EdR

 

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Statements about the Company’s business that are not historical facts are “forward-looking statements,” which relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters.  Forward-looking statements are based on current expectations. You should not rely on our forward-looking statements because the matters that they describe are subject to known and unknown risks and uncertainties that could cause the Company’s business, financial condition, liquidity, results of operations, Core FFO, FFO and prospects to differ materially from those expressed or implied by such statements. Such risks are set forth under the captions “Risk Factors,” “Forward-Looking Statements” and Management’s Discussion and Analysis of Financial Condition and Results of Operations” (or similar captions) in our most recent Annual Report on Form 10-K and our quarterly reports on Form 10-Q, and as described in our other filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made, and, except as otherwise may be required by law, the Company undertakes no obligation to update publicly or revise any guidance or other forward-looking statement, whether as a result of new information, future developments, or otherwise.