Education Realty Trust, Inc. - FORM 8-K - EX-99.2 - EXHIBIT 99.2 FOURTH QUARTER 2017 SUPPLEMENTAL - February 20, 2018

Attached files

file filename
8-K - 8-K - Education Realty Trust, Inc.a8-kannouncingq42017earnin.htm
EX-99.1 - EXHIBIT 99.1 PRESS RELEASE - FEBRUARY 20, 2018 - Education Realty Trust, Inc.q42017edrearningsrelease.htm


q42017covera01.jpg



tableofcontentsq42017a05.jpg

edrimagelogo.gif
FINANCIAL HIGHLIGHTS

 (Amounts in thousands, except per share data, unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 OPERATING DATA:
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended December 31,
 
Year ended December 31,
 
 
2017
2016
 
$ Chg
% Chg
 
2017
2016
 
$ Chg
% Chg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-community revenue
$
66,031

$
64,900

 
$
1,131

1.7
%
 
$
238,342

$
233,893

 
$
4,449

1.9
 %
 
Total community revenue
91,786

80,437

 
11,349

14.1
%
 
313,727

274,187

 
39,540

14.4
 %
 
Total revenue
95,866

84,224

 
11,642

13.8
%
 
331,066

288,968

 
42,098

14.6
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-community net operating income
43,363

42,719

 
644

1.5
%
 
143,524

142,437

 
1,087

0.8
 %
 
Total community net operating income
59,719

52,626

 
7,093

13.5
%
 
185,369

162,809

 
22,560

13.9
 %
 
Total operating income
32,026

18,133

 
13,893

76.6
%
 
62,961

49,066

 
13,895

28.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to EdR
25,378

14,133

 
11,245

79.6
%
 
47,440

44,924

 
2,516

5.6
 %
 
Per share - basic and diluted
$
0.32

$
0.19

 
$
0.13

68.4
%
 
$
0.60

$
0.65

 
$
(0.05
)
(7.7
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funds from operations (FFO)
48,399

39,692

 
8,707

21.9
%
 
142,753

105,973

 
36,780

34.7
 %
 
Per weighted average share/unit (1)
$
0.63

$
0.54

 
$
0.09

16.7
%
 
$
1.92

$
1.52

 
$
0.40

26.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Core funds from operations (Core FFO)
44,740

43,219

 
1,521

3.5
%
 
141,465

122,980

 
18,485

15.0
 %
 
Per weighted average share/unit (1)
$
0.59

$
0.59

 
$
—

—
%
 
$
1.90

$
1.77

 
$
0.13

7.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL RATIOS:
 
 
 
 
 
 
 
 
12/31/2017
 
12/31/2016
 
 
 
 
 
 
 
Debt to gross assets
27.5%
 
18.5%
 
 
 
 
 
 
 
Net debt to gross assets
27.0%
 
17.5%
 
 
 
 
 
 
 
Debt, net of cash and undrawn forward equity proceeds to gross assets
21.4%
 
7.1%
 
 
 
 
 
 
 
Net debt to enterprise value
25.6%
 
13.5%
 
 
 
 
 
 
 
Interest coverage ratio (TTM)
10.3x
 
9.0x
 
 
 
 
 
 
 
Net debt to EBITDA - Adjusted (TTM)
3.3x
 
1.7x
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) FFO and Core FFO per share/unit were computed using weighted average shares and units outstanding, regardless of their dilutive impact. See page 5 for a detailed calculation.

FOURTH QUARTER 2017
1
edrimagelogo.gif
BALANCE SHEET

(Amount in thousands, except share and per share data, unaudited)
 
 
 
 
 
 
 
December 31, 2017
 
December 31, 2016
 
 Assets
 
 
 
 
 
 
Collegiate housing properties, net (1)
 
$
2,425,031

 
$
2,108,706

 
 
Assets under development
 
487,887

 
289,942

 
 
Cash and cash equivalents
 
24,787

 
34,475

 
 
Restricted cash
 
4,368

 
7,838

 
 
Other assets
 
73,091

 
65,224

 
 Total assets
 
$
3,015,164

 
$
2,506,185

 
 
 
 
 
 
 
 Liabilities and equity
 
 
 
 
 
 Liabilities:
 
 
 
 
 
 
Unsecured debt, net of unamortized deferred financing costs
 
933,449

 
454,676

 
 
Mortgage and construction loans, net of unamortized deferred financing costs
 
—

 
62,520

 
 
Accounts payable and accrued expenses
 
162,434

 
127,872

 
 
Deferred revenue
 
20,473

 
20,727

 
 Total liabilities
 
1,116,356

 
665,795

 
 
 
 
 
 
 
 
 Commitments and contingencies
 
—

 
—

 
 
 
 
 
 
 
 
Redeemable noncontrolling interests
 
52,843

 
38,949

 
 
 
 
 
 
 
 
 Equity:
 
 
 
 
 
 EdR stockholders' equity:
 
 
 
 
 
 
Common stock, $0.01 par value per share, 200,000,000 shares authorized, 75,779,932 and 73,075,455 shares issued and outstanding as of December 31, 2017 and 2016, respectively
 
757

 
731

 
 
Preferred stock, $0.01 par value per share, 50,000,000 shares authorized, no shares issued and outstanding
 
—

 
—

 
 
Additional paid-in capital
 
1,844,639

 
1,802,852

 
 
Retained earnings
 
—

 
—

 
 
Accumulated other comprehensive loss
 
(660
)
 
(3,564
)
 
 Total EdR stockholders' equity
 
1,844,736

 
1,800,019

 
 Noncontrolling interest
 
1,229

 
1,422

 
 Total equity
 
1,845,965

 
1,801,441

 
 
 
 
 
 
 
 
 Total liabilities and equity
 
$
3,015,164

 
$
2,506,185

 
 
 
 
 
 
 
 
(1) Amount is net of accumulated depreciation of $385,118 and $311,069, as of December 31, 2017 and 2016, respectively.

FOURTH QUARTER 2017
2
edrimagelogo.gif
OPERATING RESULTS

(Amounts in thousands, except per share data, unaudited)
 
 
 
 
 
 
 
Three months ended December 31,
 
Year ended December 31,
 
2017
 
2016
 
$ Change
 
2017
 
2016
 
$ Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
     Collegiate housing leasing revenue
$
91,786

 
$
80,437

 
$
11,349

 
$
313,727

 
$
274,187

 
$
39,540

     Third-party development consulting services
1,063

 
636

 
427

 
5,256

 
2,364

 
2,892

     Third-party management services
1,102

 
1,032

 
70

 
3,736

 
3,588

 
148

     Operating expense reimbursements
1,915

 
2,119

 
(204
)
 
8,347

 
8,829

 
(482
)
     Total revenues
95,866

 
84,224

 
11,642

 
331,066

 
288,968

 
42,098

Operating expenses:
 
 
 
 
 
 
 
 
 
 


     Collegiate housing leasing operations
32,067

 
27,811

 
4,256

 
128,358

 
111,378

 
16,980

     Development and management services
3,253

 
2,706

 
547

 
14,147

 
10,671

 
3,476

     General and administrative
2,717

 
2,422

 
295

 
11,441

 
10,413

 
1,028

     Development pursuit, acquisition costs and severance
2,067

 
292

 
1,775

 
2,928

 
1,190

 
1,738

     Depreciation and amortization
22,693

 
22,462

 
231

 
95,501

 
81,413

 
14,088

     Ground lease expense
3,965

 
3,633

 
332

 
13,424

 
12,462

 
962

     Loss on impairment of collegiate housing properties
—

 
2,500

 
(2,500
)
 
—

 
2,500

 
(2,500
)
     Other operating (income) expense(1)
(4,837
)
 
2,146

 
(6,983
)
 
(6,041
)
 
1,046

 
(7,087
)
     Reimbursable operating expenses
1,915

 
2,119

 
(204
)
 
8,347

 
8,829

 
(482
)
     Total operating expenses
63,840

 
66,091

 
(2,251
)
 
268,105

 
239,902

 
28,203

 
 
 
 
 
 
 
 
 
 
 


Operating income
32,026

 
18,133

 
13,893

 
62,961

 
49,066

 
13,895

 
 
 
 
 
 
 
 
 
 
 


Nonoperating (income) expenses:
 
 
 
 
 
 
 
 
 
 


     Interest expense
4,894

 
3,345

 
1,549

 
15,268

 
15,454

 
(186
)
     Amortization of deferred financing costs
389

 
351

 
38

 
1,574

 
1,731

 
(157
)
     Interest income
(32
)
 
(61
)
 
29

 
(98
)
 
(490
)
 
392

     Loss on extinguishment of debt
—

 
—

 
—

 
22

 
10,611

 
(10,589
)
Total nonoperating expenses
5,251

 
3,635

 
1,616

 
16,766

 
27,306

 
(10,540
)
Income before equity in earnings of unconsolidated entities, income taxes and gain on sale of collegiate housing communities
26,775

 
14,498

 
12,277

 
46,195

 
21,760

 
24,435

Equity in (losses) earnings of unconsolidated entities
(206
)
 
289

 
(495
)
 
(65
)
 
(328
)
 
263

Income before income taxes and gain on sale of collegiate housing properties
26,569

 
14,787

 
11,782

 
46,130

 
21,432

 
24,698

Income tax expense
1,532

(2) 
460

 
1,072

 
584

(2) 
684

 
(100
)
Income before gain on sale of collegiate housing properties
25,037

 
14,327

 
10,710

 
45,546

 
20,748

 
24,798

Gain on sale of collegiate housing properties
—

 
—

 
—

 
691

 
23,956

 
(23,265
)
Net income
25,037

 
14,327

 
10,710

 
46,237

 
44,704

 
1,533


FOURTH QUARTER 2017
3
edrimagelogo.gif
OPERATING RESULTS

(Amounts in thousands, except per share data, unaudited)
 
 
 
 
 
 
 
Three months ended December 31,
 
Year ended December 31,
 
2017
 
2016
 
$ Change
 
2017
 
2016
 
$ Change
 
 
 
 
 
 
 
 
 
 
 
 
Less: Net (loss) income attributable to the noncontrolling interests
(341
)
 
194

 
(535
)
 
(1,203
)
 
(220
)
 
(983
)
Net income attributable to Education Realty Trust, Inc.
$
25,378

 
$
14,133

 
$
11,245

 
$
47,440

 
$
44,924

 
$
2,516

 
 
 
 
 
 
 
 
 
 
 


Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
      Gain on cash flow hedging derivatives
1,824

 
4,748

 
(2,924
)
 
2,904

 
1,911

 
993

Comprehensive income
$
27,202

 
$
18,881

 
$
8,321

 
$
50,344

 
$
46,835

 
$
3,509

 
 
 
 
 
 
 
 
 
 
 
 
Earnings per share information:
 
 
 
 
 
 
 
 
 
 


Net income attributable to Education Realty Trust, Inc. common stockholders per share – basic and diluted (3)
$
0.32

 
$
0.19

 
$
0.13

 
$
0.60

 
$
0.65

 
$
(0.05
)
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares of common stock outstanding – basic
76,204

 
73,357

 
 
 
74,263

 
69,336

 
 
Weighted average shares of common stock outstanding – diluted (4)
76,388

 
73,595

 
 
 
74,465

 
69,600

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Included in other operating income (expense) for the periods above are the changes in fair value of contingent consideration liabilities associated with our 2016 acquisitions of the Hub at Madison and Urbane. Also included in other operating income for the fourth quarter 2017 was a $4.8 million gain on the settlement of a dispute that arose with the seller of one of our acquired properties post-acquisition.
(2) On December 22, 2017, the Tax Cuts and Jobs Act was enacted, which reduced U.S. corporate tax rates, resulting in an $835 thousand increase in income taxes for the fourth quarter and year ended December 31, 2017.
(3) The numerator of earnings per share - basic and diluted also includes $0.7 million and $2.7 million of accretion of redeemable noncontrolling interests for the three and twelve months ended December 31, 2017, respectively.
(4) Weighted average shares of common stock outstanding - diluted assumes the conversion of outstanding redeemable Operating Partnership Units and University Towers Operating Units and shares issuable upon settlement of the forward ATM agreements.

FOURTH QUARTER 2017
4
edrimagelogo.gif
FUNDS FROM OPERATIONS

(Amounts in thousands, except per share data, unaudited)
Three months ended December 31,
 
Year ended December 31,
 
 
2017
 
2016
 
$ Change
 
2017
 
2016
 
$ Change
Net income attributable to EdR
$
25,378

 
$
14,133

 
$
11,245

 
$
47,440

 
$
44,924

 
$
2,516

 
Gain on sale of collegiate housing assets
—

 
—

 
—

 
(691
)
 
(23,956
)
 
23,265

 
Impairment losses
—

 
2,500

 
(2,500
)
 
—

 
2,500

 
(2,500
)
 
Real estate related depreciation and amortization
22,074

 
22,229

 
(155
)
 
93,390

 
79,653

 
13,737

 
Equity portion of real estate depreciation and amortization on equity investees
913

 
676

 
237

 
2,923

 
2,699

 
224

 
Noncontrolling interests
34

 
154

 
(120
)
 
(309
)
 
153

 
(462
)
Funds from operations ("FFO") available to stockholders and unitholders
48,399

 
39,692

 
8,707

 
142,753

 
105,973

 
36,780

 
percent change
 
 
 
 
21.9
%
 
 
 
 
 
34.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
FFO adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
Loss on extinguishment of debt
—

 
—

 
—

 
22

 
10,611

 
(10,589
)
 
Acquisition costs
8

 
206

 
(198
)
 
35

 
619

 
(584
)
 
Change in fair value of contingent consideration liability and settlement(1)
(4,837
)
 
2,146

 
(6,983
)
 
(6,041
)
 
1,046

 
(7,087
)
 
Straight-line adjustment for ground leases (2)
1,170

 
1,175

 
(5
)
 
4,696

 
4,731

 
(35
)
FFO adjustments
(3,659
)
 
3,527

 
(7,186
)
 
(1,288
)
 
17,007

 
(18,295
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Core funds from operations ("Core FFO") available to stockholders and unitholders
$
44,740

 
$
43,219

 
$
1,521

 
$
141,465

 
$
122,980

 
$
18,485

 
percent change
 
 
 
 
3.5
%
 
 
 
 
 
15.0
 %
 
 
 
 
 
 


 
 
 
 
 

Earnings per share - diluted (3)
$
0.32

 
$
0.19

 
$
0.13

 
$
0.60

 
$
0.65

 
$
(0.05
)
 
percent change
 
 
 
 
68.4
%
 
 
 
 
 
(7.7
)%
FFO per weighted average share/unit (4)
$
0.63

 
$
0.54

 
$
0.09

 
$
1.92

 
$
1.52

 
$
0.40

 
percent change
 
 
 
 
16.7
%
 
 
 
 
 
26.3
 %
Core FFO per weighted average share/unit (4)
$
0.59

 
$
0.59

 
$
—

 
$
1.90

 
$
1.77

 
$
0.13

 
percent change
 
 
 
 
—
%
 
 
 
 
 
7.3
 %
 
 
 
 
 
 
 
 
 
 
 
 

Weighted average shares/units (4)
76,388

 
73,595

 
2,793

 
74,465

 
69,600

 
4,865

 
percent change
 
 
 
 
3.8
%
 
 
 
 
 
7.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: The Tax Cuts and Jobs Act was signed into law in December 2017, and as a result we incurred an increased tax charge of $835 thousand for the fourth quarter and year ended December 31, 2017. This charge reduced earnings per share, FFO and Core FFO per share each by $0.01 for the fourth quarter and year ended December 31, 2017.
 
(1) Included in this line item for the periods above are the changes in fair value of contingent consideration liabilities associated with two of our 2016 acquisitions. Also included for the fourth quarter 2017 was a $4.8 million gain on the settlement of a dispute that arose with the seller of one of our acquired properties post-acquisition.
(2) This represents the straight-line rent expense adjustment required by GAAP related to ground leases. As the 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.
(3) The numerator for earnings per share - diluted also includes $0.7 million and $2.7 million of accretion of redeemable noncontrolling interests for the three and twelve months ended December 31, 2017, respectively.
(4) 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.

FOURTH QUARTER 2017
5
edrimagelogo.gif
COMMUNITY OPERATING RESULTS

(Amounts in thousands, unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended December 31,
 
Year Ended December 31,
 
 
2017
 
2016
 
$ Change
 
% Change
 
2017
 
2016
 
$ Change
 
% Change
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-communities(1)
$
66,031

 
$
64,900

 
$
1,131

 
1.7
%
 
$
238,342

 
$
233,893

 
$
4,449

 
1.9
%
 
New-communities (2)
23,315

 
11,795

 
11,520

 
NM

 
65,580

 
23,014

 
42,566

 
NM

 
Other-communities(3)
2,440

 
3,090

 
(650
)
 
NM

 
8,871

 
10,460

 
(1,589
)
 
NM

 
Sold-communities(4)
—

 
652

 
(652
)
 
NM

 
934

 
6,820

 
(5,886
)
 
NM

Total revenues
91,786

 
80,437

 
11,349

 
14.1
%
 
313,727

 
274,187

 
39,540

 
14.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses (5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-communities(1)
22,668

 
22,181

 
487

 
2.2
%
 
94,818

 
91,456

 
3,362

 
3.7
%
 
New-communities (2)
8,038

 
3,673

 
4,365

 
NM

 
27,172

 
9,752

 
17,420

 
NM

 
Other-communities(3)
1,361

 
1,508

 
(147
)
 
NM

 
5,538

 
6,031

 
(493
)
 
NM

 
Sold-communities(4)
—

 
449

 
(449
)
 
NM

 
830

 
4,139

 
(3,309
)
 
NM

Total operating expenses
32,067

 
27,811

 
4,256

 
15.3
%
 
128,358

 
111,378

 
16,980

 
15.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net operating income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-communities(1)
43,363

 
42,719

 
644

 
1.5
%
 
143,524

 
142,437

 
1,087

 
0.8
%
 
New-communities (2)
15,277

 
8,122

 
7,155

 
NM

 
38,408

 
13,262

 
25,146

 
NM

 
Other-communities(3)
1,079

 
1,582

 
(503
)
 
NM

 
3,333

 
4,429

 
(1,096
)
 
NM

 
Sold-communities(4)
—

 
203

 
(203
)
 
NM

 
104

 
2,681

 
(2,577
)
 
NM

Total net operating income
$
59,719

 
$
52,626

 
$
7,093

 
13.5
%
 
$
185,369

 
$
162,809

 
$
22,560

 
13.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Same-communities are defined as those communities that were owned and operating for the full year as of December 31, 2017 and 2016 and are not conducting substantial development or redevelopment activities or have other significant changes in design beds. See page 29 of this supplement for a listing of same-communities.
(2) See page 30 of this supplement for a listing of which communities are categorized as new-communities.
(3) Effective January 1, 2017, the following communities moved from same-community to other-community: 1) Players Club serving Florida State University due to the demolition and redevelopment of the property and 2) University Towers, serving North Carolina State University. As a result of the university implementing a new freshman live-on requirement in fall 2017, we anticipated changing the way the community will be leased and operated in 2017 making year over year results incomparable.
(4) Represents operating results from communities sold in 2016 or 2017.
(5) Represents community level operating expenses, excluding management fees, depreciation, amortization, ground lease expense and impairment charges, plus regional and other corporate costs of supporting the communities.




FOURTH QUARTER 2017
6
edrimagelogo.gif
SAME-COMMUNITY EXPENSES BY CATEGORY

(Amounts in thousands, except bed and per-bed data, unaudited)
 
Three months ended December 31, 2017
 
Three months ended December 31, 2016
 
 
 
 
 
Amount
 
Per Bed
 
% of Total Operating Expenses
 
Amount
 
Per Bed
 
% of Total Operating Expenses
 
$ Change
 
% Change
Utilities(1)
$
6,908

 
$
264

 
29
%
 
$
6,753

 
$
258

 
30
%
 
$
155

 
2.3
 %
On-Site Payroll
3,879

 
148

 
17
%
 
3,821

 
146

 
16
%
 
58

 
1.5
 %
General & Administrative(2)
3,834

 
147

 
17
%
 
3,571

 
136

 
16
%
 
263

 
7.4
 %
Maintenance & Repairs(3)
1,677

 
64

 
7
%
 
1,479

 
57

 
7
%
 
198

 
13.4
 %
Marketing
1,080

 
41

 
5
%
 
909

 
35

 
4
%
 
171

 
18.8
 %
Total Direct Operating Expenses
$
17,378

 
$
664

 
76
%
 
$
16,533

 
$
632

 
75
%
 
$
845

 
5.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Taxes
4,781

 
183

 
21
%
 
5,086

 
194

 
23
%
 
(305
)
 
(6.0
)%
Insurance
509

 
19

 
2
%
 
562

 
21

 
3
%
 
(53
)
 
(9.4
)%
Total Fixed Operating Expenses
$
5,290

 
$
202

 
24
%
 
$
5,648

 
$
215

 
25
%
 
$
(358
)
 
(6.3
)%
Total Property Operating Expenses
$
22,668

 
$
866

 
100
%
 
$
22,181

 
$
847

 
100
%
 
$
487

 
2.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2017
 
Year ended December 31, 2016
 
 
 
 
 
Amount
 
Per Bed
 
% of Total Operating Expenses
 
Amount
 
Per Bed
 
% of Total Operating Expenses
 
$ Change
 
% Change
Utilities(1)
$
26,798

 
$
1,024

 
28
%
 
$
26,278

 
$
1,004

 
29
%
 
$
520

 
2.0
 %
On-Site Payroll
15,993

 
611

 
17
%
 
16,162

 
618

 
18
%
 
(169
)
 
(1.0
)%
General & Administrative(2)
13,454

 
514

 
15
%
 
13,011

 
497

 
14
%
 
443

 
3.4
 %
Maintenance & Repairs(3)
11,111

 
425

 
12
%
 
10,528

 
402

 
12
%
 
583

 
5.5
 %
Marketing
3,852

 
147

 
4
%
 
3,661

 
140

 
4
%
 
191

 
5.2
 %
Total Direct Operating Expenses
$
71,208

 
$
2,721

 
76
%
 
$
69,640

 
$
2,661

 
76
%
 
$
1,568

 
2.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Taxes
21,568

 
824

 
23
%
 
19,553

 
747

 
21
%
 
2,015

 
10.3
 %
Insurance
2,042

 
78

 
2
%
 
2,263

 
86

 
2
%
 
(221
)
 
(9.8
)%
Total Fixed Operating Expenses
$
23,610

 
$
902

 
24
%
 
$
21,816

 
$
834

 
24
%
 
$
1,794

 
8.2
 %
Total Property Operating Expenses
$
94,818

 
$
3,623

 
100
%
 
$
91,456

 
$
3,495

 
100
%
 
$
3,362

 
3.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-community beds
26,167

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Represents gross costs before recoveries from tenants and includes student amenities such as internet.
(2) Includes property-level general and administrative cost and dining costs as well as regional and other corporate costs of supporting the communities.
(3) Includes general maintenance costs, grounds and landscaping, turn costs and life safety costs.

FOURTH QUARTER 2017
7
 
COMMUNITY OPERATIONS - TRAILING FIVE QUARTERS


(Amounts in thousands, except beds and per bed amounts)
Three Months Ended
 
Year Ended December 31, 2017
 
 
 
December 31, 2016
 
March 31, 2017
 
June 30, 2017
 
September 30, 2017
 
December 31, 2017
 
2017 Same-Communities
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
64,900

 
$
63,492

 
$
55,574

 
$
53,245

 
$
66,031

 
$
238,342

 
Operating Expenses
 
22,181

 
21,871

 
22,886

 
27,393

 
22,668

 
94,818

 
Net Operating Income
 
$
42,719

 
$
41,621

 
$
32,688

 
$
25,852

 
$
43,363

 
$
143,524

 
Margin
 
66
%
 
66
%
 
59
 %
 
49
%
 
66
%
 
60
%
 
Beds
 
78,501

 
78,501

 
78,501

 
78,501

 
78,501

 
314,004

 
Occupancy(1)
 
96.8
%
 
95.3
%
 
82.3
 %
 
87.8
%
 
95.3
%
 
90.2
%
 
Net Apartment Rent per Occupied Bed
 
$
810

 
$
800

 
$
799

 
$
695

 
$
835

 
$
783

 
Other Income per Occupied Bed
 
44

 
48

 
61

 
78

 
48

 
58

 
Total Revenue per Occupied Bed
 
$
854

 
$
848

 
$
860

 
$
773

 
$
883

 
$
841

 
Operating Expense per Available Bed
 
$
283

 
$
279

 
$
292

 
$
349

 
$
289

 
$
302

 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017 New-Communities
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
11,795

 
$
13,647

 
$
12,526

 
$
16,092

 
$
23,315

 
$
65,580

 
Operating Expenses
 
3,673

 
5,076

 
5,741

 
8,317

 
8,038

 
27,172

 
Net Operating Income
 
$
8,122

 
$
8,571

 
$
6,785

 
$
7,775

 
$
15,277

 
$
38,408

 
Margin
 
69
%
 
63
%
 
54
 %
 
48
%
 
66
%
 
59
%
 
Beds
 
14,175

 
17,833

 
18,138

 
24,144

 
28,092

 
88,207

 
Occupancy(1)
 
89.6
%
 
89.2
%
 
77.5
 %
 
83.3
%
 
90.0
%
 
85.4
%
 
Net Apartment Rent per Occupied Bed
 
$
871

 
$
803

 
$
820

 
$
721

 
$
868

 
$
806

 
Other Income per Occupied Bed
 
58

 
55

 
71

 
79

 
55

 
64

 
Total Revenue per Occupied Bed
 
$
929

 
$
858

 
$
891

 
$
800

 
$
923

 
$
870

 
Operating Expense per Available Bed
 
$
259

 
$
285

 
$
317

 
$
344

 
$
286

 
$
308

 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017 Other-Communities(2)
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
3,090

 
$
3,021

 
$
1,662

 
$
1,748

 
$
2,440

 
$
8,871

 
Operating Expenses
 
1,508

 
1,475

 
1,336

 
1,366

 
1,361

 
5,538

 
Net Operating Income
 
$
1,582

 
$
1,546

 
$
326

 
$
382

 
$
1,079

 
$
3,333

 
Margin
 
51
%
 
51
%
 
20
 %
 
22
%
 
44
%
 
38
%
 
Beds
 
3,675

 
3,675

 
3,339

 
2,667

 
2,667

 
12,348

 
Occupancy(1)
 
87.8
%
 
87.2
%
 
42.3
 %
 
66.6
%
 
97.9
%
 
72.9
%
 
Net Apartment Rent per Occupied Bed
 
$
903

 
$
883

 
$
899

 
$
765

 
$
893

 
$
865

 
Other Income per Occupied Bed
 
54

 
59

 
278

 
219

 
42

 
120

 
Total Revenue per Occupied Bed
 
$
957

 
$
942

 
$
1,177

 
$
984

 
$
935

 
$
985

 
Operating Expense per Available Bed
 
$
410

 
$
401

 
$
400

 
$
512

 
$
510

 
$
448

 
 
 
 
 
 
 
 
 
 
 
 
 
 

FOURTH QUARTER 2017
8
 
COMMUNITY OPERATIONS - TRAILING FIVE QUARTERS


(Amounts in thousands, except beds and per bed amounts)
Three Months Ended
 
Year Ended December 31, 2017
 
 
 
December 31, 2016
 
March 31, 2017
 
June 30, 2017
 
September 30, 2017
 
December 31, 2017
 
2017 Sold-Communities
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
652

 
$
625

 
$
309

 
$
—

 
$
—

 
$
934

 
Operating Expenses
 
449

 
455

 
375

 
—

 
—

 
830

 
Net Operating Income
 
$
203

 
$
170

 
$
(66
)
 
$
—

 
$
—

 
$
104

 
Margin
 
31
%
 
27
%
 
(21
)%
 
—
%
 
—
%
 
11
%
 
Beds
 
1,836

 
1,836

 
1,224

 
—

 
—

 
3,060

 
Occupancy(1)
 
61.4
%
 
61.4
%
 
63.1
 %
 
—
%
 
—
%
 
62.1
%
 
Net Apartment Rent per Occupied Bed
 
$
563

 
$
530

 
$
372

 
$
—

 
$
—

 
$
466

 
Other Income per Occupied Bed
 
15

 
24

 
27

 
—

 
—

 
25

 
Total Revenue per Occupied Bed
 
$
578

 
$
554

 
$
399

 
$
—

 
$
—

 
$
491

 
Operating Expense per Available Bed
 
$
244

 
$
248

 
$
307

 
$
—

 
$
—

 
$
271

 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017 Total Communities
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
80,437

 
$
80,785

 
$
70,071

 
$
71,085

 
$
91,786

 
$
313,727

 
Operating Expenses
 
27,811

 
28,877

 
30,338

 
37,076

 
32,067

 
128,358

 
Net Operating Income
 
$
52,626

 
$
51,908

 
$
39,733

 
$
34,009

 
$
59,719

 
$
185,369

 
Margin
 
65
%
 
64
%
 
57
 %
 
48
%
 
65
%
 
59
%
 
Beds
 
98,187

 
101,845

 
101,202

 
105,312

 
109,260

 
417,619

 
Occupancy(1)
 
94.8
%
 
93.3
%
 
79.9
 %
 
86.2
%
 
94
%
 
88.5
%
 
Net Apartment Rent per Occupied Bed
 
$
819

 
$
800

 
$
800

 
$
702

 
$
844

 
$
788

 
Other Income per Occupied Bed
 
46

 
50

 
66

 
81

 
49

 
61

 
Total Revenue per Occupied Bed
 
$
865

 
$
850

 
$
866

 
$
783

 
$
893

 
$
849

 
Operating Expense per Available Bed
 
$
283

 
$
284

 
$
300

 
$
352

 
$
293

 
$
307

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Represents the weighted average physical occupancy for the period presented.
(2) Effective January 1, 2017, the following communities moved from same-community to other-community: 1) Players Club serving Florida State University due to the demolition and redevelopment of the property and 2) University Towers, serving North Carolina State University, as we previously anticipated changing the way the community will be leased and operated in 2017.


FOURTH QUARTER 2017
9
edrimagelogo.gif
2017 RESULTS PRESENTED IN 2018 SAME-COMMUNITY MIX

Build-up to 2018 Same-Community Mix
 
 
 
 
 
 
(Amounts in thousands, except beds and per bed amounts)
Three Months Ended
 
Total Full Year 2017
 
 
 
March 31, 2017
 
June 30, 2017
 
September 30, 2017
 
December 31, 2017
 
2017 Same-Communities
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
63,492

 
$
55,574

 
$
53,245

 
$
66,031

 
$
238,342

 
Operating Expenses
 
21,871

 
22,886

 
27,393

 
22,668

 
94,818

 
Net Operating Income
 
$
41,621

 
$
32,688

 
$
25,852

 
$
43,363

 
$
143,524

 
Margin
 
66
%
 
59
%
 
49
%
 
66
%
 
60
%
 
Beds
 
78,501

 
78,501

 
78,501

 
78,501

 
314,004

 
Occupancy(1)
 
95.3
%
 
82.3
%
 
87.8
%
 
95.3
%
 
90.2
%
 
Net Apartment Rent per Occupied Bed
 
$
800

 
$
799

 
$
695

 
$
835

 
$
783

 
Other Income per Occupied Bed
 
48

 
61

 
78

 
48

 
58

 
Total Revenue per Occupied Bed
 
$
848

 
$
860

 
$
773

 
$
883

 
$
841

 
Operating Expense per Available Bed
 
$
279

 
$
292

 
$
349

 
$
289

 
$
302

 
 
 
 
 
 
 
 
 
 
 
 
Plus:
 
 
 
 
 
 
 
 
 
 
Communities moving to Same-Communities in 2018
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
11,299

 
$
9,576

 
$
9,387

 
$
12,223

 
$
42,485

 
Operating Expenses
 
3,618

 
3,608

 
4,838

 
3,399

 
15,463

 
Net Operating Income
 
$
7,681

 
$
5,968

 
$
4,549

 
$
8,824

 
$
27,022

 
Margin
 
68
%
 
62
%
 
48
%
 
72
%
 
64
%
 
Beds
 
14,175

 
14,175

 
14,175

 
14,175

 
56,700

 
Occupancy(1)
 
87.5
%
 
72.6
%
 
81.7
%
 
91.7
%
 
83.4
%
 
Net Apartment Rent per Occupied Bed
 
$
848

 
$
850

 
$
712

 
$
879

 
$
824

 
Other Income per Occupied Bed
 
63

 
79

 
98

 
61

 
75

 
Total Revenue per Occupied Bed
 
$
911

 
$
929

 
$
810

 
$
940

 
$
899

 
Operating Expense per Available Bed
 
$
255

 
$
255

 
$
341

 
$
240

 
$
273

 
 
 
 
 
 
 
 
 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
Moved to Other-Community(2)
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
7,623

 
$
7,602

 
$
7,290

 
$
8,215

 
$
30,730

 
Operating Expenses
 
3,672

 
3,684

 
4,573

 
3,668

 
15,597

 
Net Operating Income
 
$
3,951

 
$
3,918

 
$
2,717

 
$
4,547

 
$
15,133

 
Margin
 
52
%
 
52
%
 
37
%
 
55
%
 
49
%
 
Beds
 
12,600

 
12,600

 
12,600

 
12,600

 
50,400

 
Occupancy(1)
 
91.5
%
 
90.1
%
 
93.4
%
 
95.6
%
 
92.6
%
 
Net Apartment Rent per Occupied Bed
 
$
607

 
$
613

 
$
550

 
$
623

 
$
598

 
Other Income per Occupied Bed
 
54

 
57

 
69

 
59

 
60

 
Total Revenue per Occupied Bed
 
$
661

 
$
670

 
$
619

 
$
682

 
$
658

 
Operating Expense per Available Bed
 
$
291

 
$
292

 
$
363

 
$
291

 
$
309


FOURTH QUARTER 2017
10
edrimagelogo.gif
2017 RESULTS PRESENTED IN 2018 SAME-COMMUNITY MIX

Build-up to 2018 Same-Community Mix
 
 
 
 
 
 
(Amounts in thousands, except beds and per bed amounts)
Three Months Ended
 
Total Full Year 2017
 
 
 
March 31, 2017
 
June 30, 2017
 
September 30, 2017
 
December 31, 2017
 
2018 Same-Communities
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
67,168

 
$
57,548

 
$
55,342

 
$
70,039

 
$
250,097

 
Operating Expenses
 
21,817

 
22,810

 
27,658

 
22,399

 
94,684

 
Net Operating Income
 
$
45,351

 
$
34,738

 
$
27,684

 
$
47,640

 
$
155,413

 
Margin
 
68
%
 
60
%
 
50
%
 
68
%
 
62
%
 
Beds
 
80,076

 
80,076

 
80,076

 
80,076

 
320,304

 
Occupancy(1)
 
94.5
%
 
79.4
%
 
85.8
%
 
94.6
%
 
88.6
%
 
Net Apartment Rent per Occupied Bed
 
$
837

 
$
840

 
$
722

 
$
876

 
$
820

 
Other Income per Occupied Bed
 
50

 
65

 
83

 
48

 
61

 
Total Revenue per Occupied Bed
 
$
887

 
$
905

 
$
805

 
$
924

 
$
881

 
Operating Expense per Available Bed
 
$
272

 
$
285

 
$
345

 
$
280

 
$
296

 
 
 
 
 
 
 
 
 
 
 
 
(1) Represents the weighted average physical occupancy for the period presented.
(2) Represents actual 2017 results for communities expected to be sold during 2018.


FOURTH QUARTER 2017
11
edrimagelogo.gif
TOP EdR MARKETS AND STATES BY REVENUE

chart-93dce4bb59995fb395d.jpg
*The data above is based on actual 2017 revenues, but excludes properties that were sold during 2017.
(1) All revenue at the University of Kentucky is from ONE PlanSM on-campus assets.

FOURTH QUARTER 2017
12
edrimagelogo.gif
TOP EdR MARKETS AND STATES BY REVENUE


chart-ddf96e1a9a395adc9f2.jpg

*The data above is based on actual 2017 revenues, but excludes properties that were sold during 2017.



FOURTH QUARTER 2017
13
edrimagelogo.gif
NEW SUPPLY AND ENROLLMENT - EdR MARKETS



EdR Market Supply, Enrollment and Revenue Growth

 
 
 
 
 
 
 
 
 
 
 
 
 
 
EdR Markets (% of enrollment):
 
2013
 
2014
 
2015
 
2016
 
2017 (1)
 
2018 Est (2)
 
New supply as a % of enrollment
 
2.2
%
 
2.2
%
 
2.0
%
 
1.8
 %
 
2.1
 %
 
1.9
%
 
Enrollment growth
 
1.3
%
 
1.4
%
 
1.5
%
 
1.5
 %
 
1.4
 %
 
1.3
%
 
 
 
0.9
%
 
0.8
%
 
0.5
%
 
0.3
 %
 
0.7
 %
 
0.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-community:
 
 
 
 
 
 
 
 
 
 
 
 
 
Occupancy increase (decrease)
 
3.0
%
 
2.0
%
 
0.4
%
 
(1.1
)%
 
(1.2
)%
 
 
 
Rate increase
 
2.0
%
 
2.0
%
 
3.4
%
 
3.4
 %
 
3.0
 %
 
 
 
Total leasing revenue growth
 
5.0
%
 
4.0
%
 
3.8
%
 
2.3
 %
 
1.8
 %
 
3.0
%
(3) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Data includes the existing portfolio plus 2017 developments. The estimated enrollment growth is based on the 3-year enrollment CAGR through 2016 for the included communities.
 
(2) Data includes the existing portfolio plus 2018 developments but does not include communities we anticipate selling in 2018. The estimated enrollment growth is based on the 3-year enrollment CAGR through 2016 for the included communities. The 2018 supply and demand statistics for EdR markets has been updated since the third quarter supplement to 1) include the Hawai'i market as the development is now expected to deliver in summer 2018 and 2) to update 2016 enrollment numbers for markets that previously did not have final enrollment numbers available.
 
(3) Represents the midpoint of 2018/2019 leasing guidance.
 





FOURTH QUARTER 2017
14
edrimagelogo.gif
OWNED COMMUNITY PROJECTED 2018 NEW SUPPLY AND
DEMAND INFORMATION



Owned Community Projected 2018 New Supply and Demand Information by Region
 
 
 
 
 
 
 
Region (2)
Percentage of Owned Beds
Pro Forma EdR NOI%(1)
Enrollment Growth 3 Year CAGR - Universities Served
2018 New Supply as a % of Enrollment
Variance
West
18%
23%
1.6%
2.8%
(1.2)%
Mid Atlantic
21%
22%
1.5%
2.2%
(0.7)%
North
18%
16%
(0.4)%
1.5%
(1.9)%
South Central
28%
26%
1.9%
0.7%
1.2%
Southeast
8%
7%
1.4%
2.7%
(1.3)%
Midwest
7%
6%
1.1%
2.0%
(0.9)%
     Total
100%
100%
1.3%
1.9%
(0.6)%
 
 
 
 
 
 

Projected 2018 New Supply Sorted by Percentage Increase
 
University Markets with >5% Increase in 2018 Supply as a % of Enrollment
 
 
 
 
 
 
 
 
New Supply Growth
University Markets
EdR Beds
Pro Forma
EdR NOI %(1)
 
University
New Supply Increase
Pro Forma EdR NOI %(1)
0%
46%
52%
51%
 
University of Mississippi
6.6%
2%
0.1% to 1.0%
—%
—%
—%
 
Northern Michigan University
6.5%
2%
1.0% - 3.0%
30%
22%
22%
 
Florida State University
6.3%
2%
3.0% - 5.0%
12%
10%
11%
 
Syracuse University
5.6%
2%
> 5.0%
12%
16%
16%
 
Arizona State University - Tempe
5.5%
8%
     Total
100%
100%
100%
 
 
 
16%
 
 
 
 
 
 
 
 
NOTE: Schedule represents all markets served by EdR communities and includes the 2017 acquisitions and developments and all announced 2018 developments and acquisitions, but excludes communities anticipated to be sold in 2018. Data was obtained from the National Center for Education Statistics, AXIOMetrics and local market data.

 
 
 
 
 
 
 
 
(1) NOI is based on 2017 actual net operating income with pro forma adjustments for 2017 and 2018 developments and acquisitions that have been operating for less than 12 months.
(2) See definition of regions on page 32.
 
 
 
 
 
 
 
 

FOURTH QUARTER 2017
15
edrimagelogo.gif
OWNED DEVELOPMENT SUMMARY

(Amounts in thousands, except bed counts)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Active Projects
Project Type
EdR's Ownership Percentage
Bed Count
Estimated Start Date
Anticipated Completion Date
Total Project Development Cost
 
EdR's Economic Ownership Cost(1)
 
Development Cost Funded by EdR's Balance Sheet (Excludes Partner Contribution)(2)

 
EdR's Remaining Cost to be Funded
 
Northern Michigan University - The Woods
ONE Plan (3)
100%
433

Completed(4)
Completed(4)
$
24,600

 
$
24,600

 
$
24,600

 
$
—

 
University of Pittsburgh
Joint Venture
80%
723

In progress
Summer 2018
106,100

 
84,900

 
100,300

 
45,700

 
Florida State University - Players Club redevelopment
Wholly Owned
100%
592

In progress
Summer 2018
38,000

 
38,000

 
38,000

 
23,000

 
Northern Michigan University - The Woods
ONE Plan (3)
100%
379

In progress
Summer 2018(4)
29,000

 
29,000

 
29,000

 
23,700

 
University of Minnesota - Hub at Minneapolis
Joint Venture
51%
707

In progress
Summer 2018
97,900

 
49,900

 
83,500

 
47,100

 
Arizona State University - Union Tempe
Joint Venture
90%
839

In progress
Summer 2018
164,900

 
148,400

 
159,100

 
65,000

 
Cornell University - Maplewood
ONE Plan (3)
100%
872

In progress
Summer 2018
86,000

 
86,000

 
86,000

 
60,500

 
Colorado State University - Union on Plum
Joint Venture
70%
229

In progress
Summer 2018
28,200

 
19,700

 
25,700

 
14,700

 
Iowa State University - Union on Lincoln Way
Joint Venture
70%
542

In progress
Summer 2018
51,900

 
36,300

 
47,300

 
28,000

 
University of Hawai'i - Hale Mahana
Joint Venture
90%
589

In progress
Summer 2018
109,600

 
98,600

 
106,300

 
53,200

 
Oklahoma State University - One on 4th
Joint Venture
70%
475

In progress
2018
47,200

 
33,000

 
43,700

 
11,200

 
            Total - 2018 Deliveries
 
 
6,380

 
 
$
783,400

 
$
648,400

 
$
743,500

 
$
372,100

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lehigh University - Southside Commons
ONE Plan (3)
100%
428

In progress
Summer 2019
48,300

 
48,300

 
48,300

 
47,200

 
Mississippi State University
ONE Plan (3)
100%
656

Summer 2018
Summer 2019
69,200

 
69,200

 
69,200

 
69,200

 
            Total - 2019 Deliveries
 
 
1,084

 
 
$
117,500

 
$
117,500

 
$
117,500

 
$
116,400

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Active Projects
 
 
7,464

 
 
$
900,900

 
$
765,900

 
$
861,000

 
$
488,500

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Represents total project cost multiplied by EdR's ownership percentage, which is reflective of EdR's economic interest in operating results.
 
(2) For developments that are consolidated in EdR's financials but less than 100% owned, 100% of the developments costs and debt related to the development is included in EdR's balance sheet. As such, EdR's funding requirement and impact on leverage is equal to total project cost less equity contributed by our joint venture partner.
 
(3) The On-Campus Equity Plan, or The ONE PlanSM, is our equity program for universities, which allows universities to use EdR's equity and financial stability to develop and revitalize campus housing while preserving their credit capacity for other campus projects. The ONE PlanSM offers one service provider and one equity source to universities seeking to modernize on-campus housing to meet the needs of today's students.
 
(4) The second phase of NMU delivered in January 2018 with the third and final phase anticipated for a Summer 2018 delivery.

FOURTH QUARTER 2017
16
edrimagelogo.gif
CAPITAL ALLOCATION – LONG TERM FUNDING PLAN

(Amounts in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
Sources and Uses of Capital for All Announced Transactions
 
 
 
 
 
 
 
 
 
Estimated Capital Uses:
 
 
 
 
 
 
 
 
 
 
Total Project Development Cost(1)
 
Acquisition or Development Costs funded by EdR Balance Sheet (Excludes Partner Contribution)(1)
 
Less: Costs Incurred to Date(1)
 
Remaining Capital Needs(1)
2018 Development Deliveries
 
$
783

 
$
743

 
$
371

 
$
372

2019 Development Deliveries
 
118

 
118

 
2

 
116

     Total
 
$
901

 
$
861

 
$
373

 
$
488

 
 
 
 
 
 
 
 
 
Estimated Capital Sources:
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
Thereafter
 
Capital Sources
Disposition proceeds(2)
 
 
 
$
225

 
$
—

 
$
225

Equity Proceeds Available from ATM Forward Equity Sales(3)
 
 
 
190

 
—

 
190

Additional Debt, Including Draws on Revolving Credit Facility(4)
 
11

 
62

 
73

     Total Estimate
 
 
 
$
426

 
$
62

 
$
488

 
 
 
 
 
 
 
 
 
Debt to Gross Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2017
 
Pro Forma for Funding Needs Through December 31, 2018(5)
 
Pro Forma for Funding Needs Through December 31, 2019(6)
Debt to Gross Assets
 
 
 
28%
 
26%
 
27%
 
(1) Represents the share of development cost that is funded by EdR's balance sheet, which excludes any partner contributions - see page 16 for details.
(2) We are currently marketing six properties for sale with all currently in the due diligence phase, and expect to close on between $150.0 and $225.0 million of dispositions during 2018.
(3) Represents available proceeds from completed but unsettled forward equity sales through January 2018 under the ATM. The sales can be settled, shares issued and proceeds received at the Company's option through the end of 2018.
(4) The balance on the revolving credit facility as of December 31, 2017 was $349.0 million.
(5) Represents pro forma December 31, 2017 debt to gross assets including the impact of funding only the anticipated capital needed in 2018, in the manner shown in the estimated capital sources table above.
(6) Represents pro forma December 31, 2017 debt to gross assets including the impact of funding all of the anticipated capital needed in the manner shown in the estimated capital sources table above.

FOURTH QUARTER 2017
17
edrimagelogo.gif
RECENTLY AWARDED OWNED & THIRD-PARTY DEVELOPMENTS


Recently Awarded Developments
 
 
 
 
 
 
 
 
 
 
 
 
 
POSSIBLE OWNED PROJECTS
 
 
 
 
 
 
 
University
Project Type
Anticipated Beds
Anticipated Completion Date
 
 
 
Cornell University - East Hill Village
ONE Plan
470
Fall 2020
 
 
 
Sacramento State University
ONE Plan
1,100
Fall 2021
 
 
 
 
 
 
 
 
 
 
 
POSSIBLE THIRD-PARTY PROJECTS
 
 
 
 
 
 
 
Recently Awarded
Anticipated Beds
Anticipated Completion Date
 
 
 
 
University of South Florida - St. Petersburg
550
Fall 2019 or 2020
 
 
 
 
University of South Carolina
3,700
Fall 2020 - 2024
 
 
 
 
University of Massachusetts - Dartmouth
1,200
Fall 2020
 
 
 
 

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, construction agreements and ground leases.




FOURTH QUARTER 2017
18
edrimagelogo.gif
CAPITAL STRUCTURE

 
 
 
 
 
 
 
Weighted Average Interest Rate
Average Term to Maturity (in years)
 
as of December 31, 2017
 
 
 
 
 
Principal Outstanding
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Debt to Gross Assets
 
 
 
 
Fixed Rate - Unsecured Term Loan maturing 2022 (6)
$
65,000

2.9
%
4.1

 
Debt(1)
$
936,500

 
 
 
Fixed Rate - Unsecured Term Loan maturing 2021
122,500

3.5
%
3.0

 
Gross Assets(2)
3,400,282

 
 
 
Fixed Rate - 12 Yr. Unsecured Senior Notes
75,000

4.2
%
11.7

 
Debt to Gross Assets
27.5
%
 
 
 
Fixed Rate - 15 Yr. Unsecured Senior Notes
75,000

4.3
%
14.7

 
 
 
 
 
 
Fixed Rate - Unsecured Senior Notes
250,000

4.6
%
6.9

 
Net Debt to Gross Assets
 
 
 
 
Variable Rate - Unsecured Revolving Credit Facility
349,000

2.7
%
0.9

(9) 
     Net Debt
$
911,713

 
 
 
Debt(1) / Weighted Average
936,500

3.6
%
5.0

 
Gross Assets(3)
3,375,495

 
 
 
Less: Cash
24,787

 
 
 
Net Debt to Gross Assets
27.0
%
 
 
 
Net Debt
911,713

 
 
 
 
 
 
 
 
 
 
 
 
 
Debt, Net of Cash and Undrawn Forward Equity Proceeds to Gross Assets(3)
 
 
 
 
Net Debt to Enterprise Value
 
 
 
 
Net debt
$
911,713

 
 
 
     Net Debt
$
911,713

 
 
 
Less: Undrawn Forward Equity Proceeds(4)
190,215

 
 
 
     Market Equity(7)
2,653,070

 
 
 
Debt, Net of Cash and Undrawn Forward Equity Proceeds
721,498

 
 
 
Enterprise Value
3,564,783

 
 
 
Gross Assets(3)
3,375,495

 
 
 
Net Debt to Enterprise Value
25.6
%
 
 
 
Debt, Net of Cash and Undrawn Forward Equity Proceeds to Gross Assets(3)
21.4
%
 
 
 
 


 
 
 
 
 
 
 
 
 
 
 
 
 
Variable Rate Debt to Total Debt
37.3
%
 
 
 
Interest Coverage (TTM) (8)
10.3
x
 
 
 
Net Debt to EBITDA - Adjusted (TTM) (5)
3.3
x
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
(1) Excludes unamortized deferred financing costs of $3.1 million.
(2) Excludes accumulated depreciation of $385.1 million.
(3) Gross Assets excludes accumulated depreciation of $385.1 million and cash of $24.8 million.
(4) Represents available proceeds from sales of common stock sold under ATM forward agreements through December 31, 2017. The forward transactions can be settled, shares issued and proceeds received at any time at the Company's option through December 31, 2018. Undrawn proceeds from the completed ATM forward sales are not factored into the metrics above.
(5)  Net Debt to EBITDA - Adjusted is calculated to normalize the impact of non-producing construction debt. In the calculation, Net Debt is total debt (excluding the unamortized deferred financing costs) less cash and excludes non income-producing debt related to assets under development at time of calculation. EBITDA is Proforma Adjusted EBITDA, which includes proforma adjustments to reflect all acquisitions, development deliveries and dispositions as if such had occurred at the beginning of the 12 month period being presented.
(6) The Trust entered into interest rate swaps to effectively fix the interest rate on the term loans. The weighted average interest rates reflect the swapped (fixed) rate plus the current margin.
(7) Market equity includes 75,779,932 shares of the Company's common stock and 195,737 units outstanding, which are convertible into common shares, and is calculated using $34.92 per share, the closing price of the Company's common stock on December 31, 2017.
(8) Equals Adjusted EBITDA of $157.1 million divided by interest expense of $15.3 million. See page 22 for reconciliation to Adjusted EBITDA.
(9) The Revolver was amended in February 2018 and the maturity was extended until 2023.

FOURTH QUARTER 2017
19
edrimagelogo.gif
CAPITAL STRUCTURE

as of December 31, 2017
chart-134676dc777255a4a69.jpg
NOTE: At December 31, 2017, the Trust had $24.8 million of cash on hand and $190.2 million of undrawn proceeds from shares sold under ATM forward agreements.
Weighted Average Interest Rate of Debt Maturing Each Year (2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
2019
 
2020
 
2021
 
2022
 
2023
 
2024
 
2025
 
2026
 
2027
 
2028
 
2029
 
2030
 
2031
 
2032
Fixed Rate Debt
 
 
 
—%
 
—%
 
—%
 
3.5%
 
2.9%
 
—%
 
4.6%
 
—%
 
—%
 
—%
 
—%
 
4.2%
 
—%
 
—%
 
4.3%
Variable Rate Debt
 
 
 
—%
 
—%
 
—%
 
—%
 
—%
 
2.7%
 
—%
 
—%
 
—%
 
—%
 
—%
 
—%
 
—%
 
—%
 
—%
Total Debt
 
 
 
—%
 
—%
 
—%
 
3.5%
 
2.9%
 
2.7%
 
4.6%
 
—%
 
—%
 
—%
 
—%
 
4.2%
 
—%
 
—%
 
4.3%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) The unsecured revolving credit facility has an initial maturity of November 19, 2018. In February 2018, the unsecured revolving credit facility was amended, extending the maturity for five years to 2023, increasing the facility $100 million to $600 million and improving pricing, among other things. The debt maturity schedule above uses the extended maturity.
(2) The Trust entered into interest rate swaps to effectively fix the interest rate on the term loans. The weighted average interest rates reflect the swapped (fixed) rate plus the current margin.



FOURTH QUARTER 2017
20
edrimagelogo.gif
 
UNSECURED SENIOR NOTE COVENANTS

as of December 31, 2017
 
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
Unsecured Senior Note Covenants(1)
Requirement
 
Current Ratio
 
Total Debt to Total Asset Value
≤ 60%
 
27.6%
 
Secured Debt to Total Asset Value
≤ 40%
 
—%
 
Unencumbered Asset Value to Unsecured Debt
> 150%
 
360.3%
 
Interest Coverage
> 1.5x
 
5.26x
 
 
 
 
 
 
 
 
 
 
 
Calculation of Interest Coverage Ratio:
 
 
 
 
Adjusted Pro Forma EBITDA:
 
 
 
 
EdR Adjusted EBITDA(2)
$
157,087

 
 
 
Pro forma Adjustments - acquisitions & dispositions (1)
295

 
 
 
Total Adjusted Pro Forma EBITDA
$
157,382


 
 
 
 
 
 
 
Pro Forma Interest Expense:
 
 
 
 
Interest expense
$
15,268

 
 
 
Add back: Capitalized interest
12,527

 
 
 
Pro forma adjustments
2,108

 
 
 
Pro forma interest expense
$
29,903


 
 
 
 
 
 
 
Interest Coverage
5.26x

 
 
 
 
 
 
 
 
(1) Computed in accordance with the First Supplemental Indenture filed November 24, 2014 with the SEC. 

(2) See page 22 for a reconciliation to EdR Adjusted EBITDA.


FOURTH QUARTER 2017
21
edrimagelogo.gif
RECONCILIATION OF NON-GAAP MEASURES


Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA)
(Amounts in thousands)
 
 
 
 
 
 
 
For the Year Ended December 31,
 
 
 
2017
 
2016
 
Net income attributable to common shareholders
 
$
47,440

 
$
44,924

 
Straight line adjustment for ground leases
 
4,696

 
4,731

 
Acquisition costs
 
35

 
619

 
Depreciation and amortization
 
95,501

 
81,413

 
Loss on impairment of collegiate housing assets
 
—

 
2,500

 
Gain on sale of collegiate housing assets
 
(691
)
 
(23,956
)
 
Interest expense
 
15,268

 
15,454

 
Amortization of deferred financing costs
 
1,574

 
1,731

 
Interest income
 
(98
)
 
(490
)
 
Loss on extinguishment of debt
 
22

 
10,611

 
Income tax expense
 
584

 
684

 
Other operating (income) expense(1)
 
(6,041
)
 
1,046

 
Noncontrolling interests
 
(1,203
)
 
(220
)
 
Adjusted EBITDA
 
157,087

 
139,047

 
Annualize acquisitions, developments and dispositions(2)
 
8,002

 
9,938

 
Pro Forma Adjusted EBITDA
 
$
165,089

 
$
148,985

 
 
 
 
 
 
 
(1) Included in other operating income (expense) for the periods above are the changes in fair value of contingent consideration liabilities associated with two of our 2016 acquisitions. Also included in other operating income in 2017 was a $4.8 million gain on the settlement of a dispute that arose with the seller of one of our acquired properties post-acquisition.
(2) Pro forma adjustment to reflect all acquisitions, development deliveries and dispositions as if such transactions had occurred on the first day of the period presented.

FOURTH QUARTER 2017
22
edrimagelogo.gif
RECONCILIATION OF NON-GAAP MEASURES


Net operating income (NOI)
(Amounts in thousands)
Year ended December 31,
 
2017
 
2016
Operating income
$
62,961

 
$
49,066

Less: Third-party development services revenue
(5,256
)
 
(2,364
)
Less: Third-party management services revenue
(3,736
)
 
(3,588
)
Less: Other operating (income) expense
(6,041
)
 
1,046

Plus: Development and management services expenses
14,147

 
10,671

Plus: General and administrative expenses, development pursuit, acquisition costs and severance
14,369

 
11,603

Plus: Ground leases
13,424

 
12,462

Plus: Impairment loss on collegiate housing properties
—

 
2,500

Plus: Depreciation and amortization
95,501

 
81,413

NOI
$
185,369

 
$
162,809


Debt to gross assets
(Amounts in thousands)
 
December 31, 2017
 
December 31, 2016
Unsecured debt, excluding unamortized deferred financing costs of $3,051 and $2,824 as of December 31, 2017 and 2016, respectively
 
$
936,500

 
$
457,500

Mortgage and construction loans, excluding unamortized deferred financing costs of $56 as of December 31, 2016
 
—

 
62,576

Total debt, excluding unamortized deferred financing costs
 
$
936,500

 
$
520,076

 
 
 
 
 
Total assets
 
$
3,015,164

 
$
2,506,185

Accumulated depreciation(1)
 
385,118

 
311,069

Gross assets
 
$
3,400,282

 
$
2,817,254

 
 
 
 
 
Debt to gross assets
 
27.5
%
 
18.5
%
(1) Represents accumulated depreciation on real estate assets.

 
 
 
 

FOURTH QUARTER 2017
23
edrimagelogo.gif
2018 GUIDANCE

(Amounts in thousands, except per share/unit data)
 
Year ending December 31, 2018
 
 
Without Capital Transactions
 
With Capital Transactions
 
 
Low
 
High
 
Low
 
High
 
 
 
 
 
 
 
 
 
Net income attributable to EdR  (1)
 
$
45,300

 
$
49,200

 
$
47,000

 
$
51,400

 
 
 
 
 
 
 
 
 
Real estate related depreciation and amortization
 
94,500

 
98,500

 
89,200

 
93,200

Equity portion of real estate depreciation and amortization on equity investees
 
2,400

 
2,400

 
2,400

 
2,400

Redeemable noncontrolling interests
 
(400
)
 
(400
)
 
(400
)
 
(400
)
Noncontrolling interest depreciation
 
(2,100
)
 
(2,100
)
 
(2,100
)
 
(2,100
)
Funds from operations ("FFO") available to stockholders and unitholders
 
$
139,700

 
$
147,600

 
$
136,100

 
$
144,500

 
 
 
 
 
 
 
 
 
FFO adjustments:
 
 
 
 
 
 
 
 
Straight-line adjustment for ground leases (2)
 
4,600

 
4,600

 
4,600

 
4,600

FFO adjustments
 
4,600

 
4,600

 
4,600

 
4,600

 
 
 
 
 
 
 
 
 
Core funds from operations ("Core FFO") available to stockholders and unitholders
 
$
144,300

 
$
152,200

 
$
140,700

 
$
149,100

 
 
 
 
 
 
 
 
 
Earnings per share – diluted (3)
 
$
0.56

 
$
0.62

 
$
0.58

 
$
0.63

 
 
 
 
 
 
 
 
 
FFO per weighted average share/unit (4)
 
$
1.83

 
$
1.93

 
$
1.75

 
$
1.85

 
 
 
 
 
 
 
 
 
Core FFO per weighted average share/unit (4)
 
$
1.89

 
$
1.99

 
$
1.81

 
$
1.91

 
 
 
 
 
 
 
 
 
Weighted average shares/units (4)
 
76,400

 
76,400

 
77,900

 
77,900

 
 
 
 

 
 
 

Note:  See pages 25 to 28 for details on guidance assumptions.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Does not include any gain or loss on dispositions included in 2018 guidance.
(2) This represents the straight-line rent expense adjustment required by GAAP related to ground leases. As the 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.
(3) The numerator for earnings per share - diluted also includes $2.2 million of accretion of redeemable noncontrolling interests for the year ended December 31, 2018.
(4) 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.

FOURTH QUARTER 2017
24
edrimagelogo.gif
2018 GUIDANCE

(Amounts in millions, except per share/unit data)
 
 
 
 
 
 
 
 
 
 
 
2018 Guidance Assumptions
 
 
 
 
 
Without Capital Transactions
 
With Capital Transactions
 
 
 
Low
 
High
 
Low
 
High
 
Projected Earnings per share/unit – diluted
 
$0.56
 
$0.62
 
$0.58
 
$0.63
 
Projected FFO per share/unit
 
$1.83
 
$1.93
 
$1.75
 
$1.85
 
Projected Core FFO per share/unit
 
$1.89
 
$1.99
 
$1.81
 
$1.91
 
Projected Weighted average shares/units outstanding (in millions)
 
76.4
 
77.9
 
Projected Debt to gross assets - 12/31/2018
 
36%
 
26%
 
 
 
 
 
 
 
 
 
 
 
Components of 2018 Property Net Operating Income
 
 
 
 
 
Low
 
High
 
% change from 2017
 
2018 Same-communities:
 
 
 
 
 
 
 
 
 
    Revenues
 
$
252.0

 
$
254.7

 
0.8% to 1.8%
 
Operating expenses
 
97.5

 
98.5

 
3.0% to 4.0%
 
Net operating income
 
154.5

 
156.2

 
(0.5)% to 0.5%
 
 
 
 
 
 
 
 
 
 
 
2018 New-communities net operating income, net of $4.1 million in preopening expenses
 
37.5

 
39.0

 
 
 
 
 
Other-community NOI
 
2.5

 
2.5

 
 
 
 
 
NOI from communities expected to sell in 2018
 
5.0

 
6.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total property net operating income
 
$
199.5

 
$
203.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leasing expectations for 2018/2019 lease-term revenue growth:
 
 
 
 
 
 
 
 
 
Leasing same-community (financial same in 2019)
 
2.0%
 
4.0%
 
 
 
 
 
2018 financial same-community - fall 2018 revenue growth
 
1.5%
 
3.0%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Development and Management Services
 
 
 
 
 
 
 
 
 
 
 
Low
 
High
 
 
 
 
 
Third-party development services revenue
 
$—
 
 
 
 
 
Third-party management services revenue
 
$3.0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

FOURTH QUARTER 2017
25
edrimagelogo.gif
2018 GUIDANCE

(Amounts in millions, except per share/unit data)
 
 
 
 
 
 
 
 
 
G&A and Nonoperating Expenses
 
 
 
 
 
 
 
 
 
 
 
Low
 
High
 
 
 
 
 
General and administrative expenses
 
$
24.0

 
$
25.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross interest expense, incl. amortization of deferred financing costs
 
$
37.5

 
$
38.5

 
 
 
 
 
Capitalized interest
 
$
(11.0
)
 
$
(12.0
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ground lease expense, excluding straight-line rent
 
$
10.0

 
$
10.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
91.2

 
$
95.2

 
 
 
 
 
Depreciation and amortization add back to Core FFO
 
$
89.2

 
$
93.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
 
 
 
 
Low
 
High
 
 
 
 
 
Income tax expense
 
$—
 
 
 
 
 
Equity in earnings of unconsolidated entities
 
$
1.2

 
$
2.0

 
 
 
 
 
Depreciation addback for Core FFO from unconsolidated entities
 
$2.4
 
 
 
 
 
Net income attributable to noncontrolling interest
 
$1.7
 
 
 
 
 
Noncontrolling interest adjustment to FFO
 
$(2.5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital Assumptions
 
 
 
 
 
 
 
 
 
 
 
Low
 
High
 
Timing
 
 
 
2018 Development deliveries - total project cost
 
$783.0
 
Fall 2018
 
 
 
2019 Development deliveries - total project cost
 
$118.0
 
Fall 2019
 
 
 
Estimated development costs incurred in 2018
 
$426.0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dispositions
 
$
150.0

 
$
225.0

 
Q1 - Q3
 
 
 
Settlement of existing 4.8 million ATM shares
 
$190.0
 
Q2 - Q3 - Q4
 
 
 
Total shares outstanding
 
81.3
 
Year end 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

FOURTH QUARTER 2017
26
edrimagelogo.gif
2018 GUIDANCE

(Amounts in millions, except per share/unit data)
 
 
 
 
 
 
 
 
 
Leverage - Year End Debt to Gross Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guidance without Capital Transactions
 
36%
 
 
 
 
 
Impact of settling ATM shares
 
(5)%
 
 
 
 
 
Impact of closing top end of disposition guidance
 
(5)%
 
 
 
 
 
Guidance - with capital transactions
 
26%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital Sources and Uses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital Sources
 
 
 
 
 
 
 
 
 
Settle existing ATM forward equity shares - 4.8 million shares
 
$
190

 
 
 
 
 
 
 
Proceeds from dispositions
 
225

 
 
 
 
 
 
 
Increase in debt
 
11

 
 
 
 
 
 
 
 
 
$
426

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital Uses
 
 
 
 
 
 
 
 
 
2018 Developments
 
$
372

 
 
 
 
 
 
 
2019 Developments
 
54

 
 
 
 
 
 
 
 
 
$
426

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

FOURTH QUARTER 2017
27
edrimagelogo.gif
2018 GUIDANCE

(Amounts in millions, except per share/unit data)
 
 
 
 
 
 
 
 
 
Midpoint of 2018 Core FFO per share/unit Guidance Compared to 2017 Results
 
 
 
 
 
 
 
 
 
 
 
Core FFO
 
Core FFO per Share/Unit
 
Weighted Average Shares/Units
 
Total Shares/Units Outstanding
 
Full Year 2017
 
$
141.5

 
$
1.90

 
74.5

 
76.4

 
 
 
 
 
 
 
 
 
 
 
Impact of difference in weighted average shares and shares outstanding at 12/31/2017
 
—

 
(0.05
)
 
1.9

 
—

 
Increase in community NOI
 
25.4

 
0.33

 
—

 
—

 
Decrease in third-party fee revenue
 
(6.2
)
 
(0.08
)
 
—

 
—

 
Decrease in general and administrative expense
 
4.3

 
0.06

 
—

 
—

 
Increase in interest expense, net
 
(16.9
)
 
(0.22
)
 
—

 
—

 
All other, net
 
0.2

 
—

 
—

 
—

 
Midpoint of 2018 guidance without Capital Transactions
 
$
148.3

 
$
1.94

 
76.4

 
76.4

 
 
 
 
 
 
 
 
 
 
 
Decrease in NOI from asset dispositions
 
(10.4
)
 
(0.14
)
 
—

 
—

 
Net impact on interest expense and share count from asset sales and settling 4.8 million already sold ATM forward equity shares
 
7.0

 
0.06

 
1.5

 
4.8

 
Midpoint of 2018 Core FFO Guidance with Capital Transactions
 
$
144.9

 
$
1.86

 
77.9

 
81.2

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 















FOURTH QUARTER 2017
28
edrimagelogo.gif
COMMUNITY LISTING - OWNED

Name
 
Primary University Served
 
 Acquisition/Development Date
 
# of Beds
 
Name
 
Primary University Served
 
Acquisition/Development Date
 
# of Beds
Same Communities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Reserve on Perkins
 
Oklahoma State University
 
Jan '05
 
732

 
The Centre at Overton Park
 
Texas Tech University
 
Dec '12
 
400

The Pointe
 
Pennsylvania State
University
 
Jan '05
 
984

 
The Oaks on the Square
 
University of Connecticut
 
Aug '12, Aug '13
 
503

The Lofts
 
University of Central Florida
 
Jan '05
 
730

 
3949
 
Saint Louis University
 
Aug '13
 
256

The Reserve at Columbia
 
University of Missouri
 
Jan '05
 
676

 
Lymon T. Johnson Hall (ONE
Plan)
 
University of Kentucky
 
Aug '13
 
301

Commons at Knoxville
 
University of Tennessee
 
Jan '05
 
708

 
Herman Lee Donovan Hall (ONE
Plan)
 
University of Kentucky
 
Aug '13
 
300

Campus Creek
 
University of Mississippi
 
Feb '05
 
636

 
2400 Nueces (ONE Plan)
 
University of Texas at Austin
 
Aug '13
 
655

Campus Lodge
 
University of Florida
 
Jun '05
 
1,115

 
Roosevelt Point
 
Arizona State University -
Downtown Phoenix
 
Aug '13
 
609

Carrollton Crossing
 
University of West Georgia
 
Jan '06
 
336

 
The Retreat at State College
 
Pennsylvania State University
 
Sept '13
 
587

River Pointe
 
University of West Georgia
 
Jan '06
 
504

 
The Cottages on Lindberg
 
Purdue University
 
Sept '13
 
745

The Reserve at Saluki Pointe
 
Southern Illinois University
 
Aug '08, Aug '09
 
768

 
The Varsity
 
University of Michigan
 
Dec '13
 
415

University Village on Colvin (ONE
Plan)
 
Syracuse University
 
Aug '09
 
432

 
The Lotus
 
University of Colorado -
Boulder
 
Nov '11, Aug '14
 
235

GrandMarc at The Corner
 
University of Virginia
 
Oct '10
 
641

 
109 Tower
 
Florida International
University
 
Aug '14
 
542

Wertland Square
 
University of Virginia
 
Mar '11
 
152

 
The Oaks on the Square- Ph III
 
University of Connecticut
 
Aug '14
 
116

Jefferson Commons
 
University of Virginia
 
Mar '11
 
82

 
Frances Jewell Hall (ONE Plan)
 
University of Kentucky
 
Aug '14
 
740

The Berk on College
 
University of California,
Berkeley
 
May '11
 
122

 
Georgia M. Blazer Hall (ONE
Plan)
 
University of Kentucky
 
Aug '14
 
427

The Berk on Arch
 
University of California,
Berkeley
 
May '11
 
43

 
Haggin Hall (ONE Plan)
 
University of Kentucky
 
Aug '14
 
396

University Village Towers
 
University of California,
Riverside
 
Sept '11
 
554

 
Chellgren Hall (ONE Plan)
 
University of Kentucky
 
Aug '14
 
409

Irish Row
 
University of Notre Dame
 
Nov '11
 
326

 
Woodland Glen II (ONE Plan)
 
University of Kentucky
 
Aug '14
 
409

GrandMarc at Westberry Place
(ONE Plan)
 
Texas Christian University
 
Dec '11
 
562

 
The District on Apache
 
Arizona State University -
Tempe
 
Sept '14
 
900

Campus West (ONE Plan)
 
Syracuse University
 
Aug '12
 
313

 
Commons on Bridge
 
University of Tennessee
 
June '15
 
150

East Edge
 
University of Alabama
 
Aug '12
 
774

 
Oaks on the Square- Ph IV
 
University of Connecticut
 
Aug '15
 
391

The Province
 
East Carolina University
 
Sept '12
 
728

 
The Retreat at Louisville
 
University of Louisville
 
Aug '15
 
656

The District on 5th
 
University of Arizona
 
Oct '12
 
764

 
Woodland Glen III (ONE Plan)
 
University of Kentucky
 
Aug '15
 
782

Campus Village
 
Michigan State University
 
Oct '12
 
355

 
Woodland Glen IV (ONE Plan)
 
University of Kentucky
 
Aug '15
 
578

The Province
 
Kent State University
 
Nov '12
 
596

 
Woodland Glen V (ONE Plan)
 
University of Kentucky
 
Aug '15
 
250

The Suites at Overton Park
 
Texas Tech University
 
Dec '12
 
465

 
The Province Boulder
 
University of Colorado -
Boulder
 
Sept '15
 
317

 
 
 
 
 
 
 
 
 
 
Total Same-Communities
 
 
 
26,167

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

FOURTH QUARTER 2017
29
edrimagelogo.gif
COMMUNITY LISTING - OWNED

Name
 
Primary University Served
 
 Acquisition/Development Date
 
# of Beds
 
Name
 
Primary University Served
 
Acquisition/Development Date
 
# of Beds
New Communities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Retreat at Oxford(1)
 
University of Mississippi
 
Aug '13, Aug '16
 
1,018

 
Sawtooth Hall (ONE Plan)
 
Boise State University
 
Aug '17
 
656

Lokal(1)
 
Colorado State University
 
March '16
 
194

 
Lewis Hall (ONE Plan)
 
University of Kentucky
 
Aug '17
 
346

The Hub at Madison(1)
 
University of Wisconsin
 
May '16
 
1,038

 
SkyVue
 
Michigan State University
 
Aug '17
 
824

Holmes Hall (ONE Plan)(1)
 
University of Kentucky
 
Aug '16
 
645

 
The Local: Downtown
 
Texas State University
 
Aug '17
 
304

Boyd Hall (ONE Plan)(1)
 
University of Kentucky
 
Aug '16
 
496

 
The Woods (ONE Plan)
 
Northern Michigan University
 
Aug '17
 
417

The Retreat at Blacksburg(1)
 
Virginia Tech
 
Aug '16
 
829

 
 
 
Total New-Communities
 
 
 
9,364

Pura Vida Place(1)
 
Colorado State University
 
Aug '16
 
100

 
 
 
 
 
 
 
 
Carriage House(1)
 
Colorado State University
 
Aug '16
 
94

 
Other-Communities
 
 
 
 
 

Urbane(1)
 
University of Arizona
 
Sept '16
 
311

 
University Towers(2)
 
North Carolina State
University
 
Jan '05
 
889

Retreat at Corvallis
 
Oregon State University
 
Jan '17
 
1,016

 
 
 
Total Other-Communities
 
 
 
889

319 Bragg
 
Auburn University
 
Feb '17
 
305

 
 
 
 
 
 
 
 
University Flats (ONE Plan)
 
University of Kentucky
 
Aug '17
 
771

 
 
 
Total Owned-Communities
 
 
 
36,420

 
(1) These properties will move into same-communities effective January 1, 2018 for financial statement reporting purposes.
(2) University Towers moved into other-communities on January 1, 2017 due to an anticipated change in the operations of the property related to the University's new live-on requirement.

FOURTH QUARTER 2017
30
edrimagelogo.gif
INVESTOR RELATIONS

Executive Management
 
 
 
 
Randy Churchey
Chief Executive Officer
 
 
 
Tom Trubiana
President
 
 
 
Bill Brewer
Chief Financial Officer
 
 
 
Christine Richards
Chief Operating Officer
 
 
 
Lindsey Mackie
Chief Accounting Officer
 
 
 
J. Drew Koester
Senior Vice President - Capital Markets and Investor Relations
 
 
 
 
 
 
Corporate Headquarters
 
 
 
 
EdR
 
 
 
 
999 South Shady Grove Road, Suite 600
 
 
 
 
Memphis, TN 38120
 
 
 
 
(901) 259-2500
 
 
 
 
 
 
 
 
Covering Analysts
 
 
 
 
Firm
Analyst
Contact #
Email
 
Bank of America - Merrill
Juan Sanabria
(646) 855-1589
juan.sanabria@baml.com
 
Citi
Nicholas Joseph
(212) 816-1909
nicholas.joseph@citi.com
 
Evercore ISI
Samir Khanal
(212) 888-3796
samir.khanal@evercoreisi.com
 
FBR Capital Markets & Co.
David Corak
(703) 312-1610
dcorak@fbr.com
 
Green Street Advisors
Ryan Burke
(949) 640-8780
rburke@greenstreetadvisors.com
 
Goldman Sachs
Andrew Rosivach
(212) 902-2796
andrew.rosivach@gs.com
 
Hilliard Lyons
Carol Kemple
(502) 588-1839
ckemple@hilliard.com
 
JMP Securities
Aaron Hecht
(415) 835-3963
ahecht@jmpsecurities.com
 
J.P. Morgan Securities Inc.
Anthony Paolone
(212) 622-6682
anthony.paolone@jpmorgan.com
 
KeyBanc Capital Markets
Austin Wurschmidt
(917) 368-2311
awurschmidt@key.com
 
Robert W Baird & Co.
Drew Babin
(215) 553-7816
dbabin@rwbaird.com
 
Sandler O'Neill + Partners, L.P.
Alex Goldfarb
(212) 466-7937
agoldfarb@sandleroneill.com


FOURTH QUARTER 2017
31
edrimagelogo.gif
DEFINITIONS

 
 
Design beds
Represents the sum of the monthly design beds in the portfolio during the period.
 
 
FFO
Funds from operations as defined by the National Association of Real Estate Investment Trusts.
 
 
GAAP
U.S. generally accepted accounting principles.
 
 
Net apartment rent per occupied bed (NarPOB)
Represents GAAP net apartment rent for the respective period divided by the sum of occupied beds in the portfolio for each month included in the period reported.
 
 
Net debt to EBITDA - adjusted
Net debt to EBITDA - adjusted is calculated to normalize the impact of non-producing construction debt. In the calculation, net debt is total debt (excluding the unamortized deferred financing costs) less cash and excludes non income-producing debt related to assets under development at time of calculation. EBITDA is Pro Forma Adjusted EBITDA, which includes proforma adjustments to reflect all acquisitions, dispositions and development assets that are open as if such had occurred at the beginning of the 12 month period being presented.

 
 
Operating expense per bed
Represents community-level operating expenses excluding management fees, depreciation and amortization.
 
 
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/application fees, late fees, termination fees, parking fees, transfer fees, damage recovery, utility recovery, and other misc.
 
 
Physical occupancy
Represents a weighted average of the month end occupancies for each month included in the period reported.
 
 
Regional Definitions
Regions are defined as follows: Mid-Atlantic: North Carolina, Pennsylvania, Connecticut, New York, Virginia; Midwest: Idaho, Iowa, Oklahoma, Missouri; North: Michigan, Minnesota, Ohio, Indiana, Illinois, Wisconsin; South Central: Texas, Tennessee, Mississippi, Kentucky; Southeast: Florida, Alabama, Georgia; West: Arizona, California, Colorado, Oregon.
 
 
Revenue per occupied bed (RevPOB)
Represents total revenue (net apartment rent plus other income) for the respective period divided by the sum of occupied beds in the portfolio for each month included in the period reported.
 
 
Same community
Same-communities are defined as those communities that were owned and operating for the full year as of December 31, 2017 and 2016 and are not conducting substantial development or redevelopment activities or have other significant changes in design beds.
 
 
EdR's Economic Ownership of Developments
Represents total project cost multiplied by EdR's ownership percentage, which is reflective of EdR's economic interest in operating results.

 
 
Development Cost Funded by EdR's Balance Sheet
For developments that are consolidated in EdR's financials but less than 100% owned, 100% of the developments costs and debt related to the development is included in EdR's balance sheet. As such, EdR's funding requirement and impact on leverage is equal to total project cost less equity contributed by our joint venture partner.


FOURTH QUARTER 2017
32
edrimagelogo.gif
SAFE HARBOR



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 except as required by law.


FOURTH QUARTER 2017
33

Stock widget

Investing forum

Education Realty Trust, Inc. Reports