EdR Announces Year-end Acquisition and Disposition Activity
MEMPHIS, Tenn. -- January 7, 2013
EdR (NYSE:EDR), one of the nation’s largest developers, owners and managers of
collegiate housing, today announced several recent closings and transactions
in November and December 2012.
*EdR completed the previously announced purchase of two communities
adjacent to Texas Tech University in Lubbock, Texas for $74 million with
cash-on-hand and the assumption of two fixed-rate mortgage loans totaling
*The company purchased The Province, a purpose-built collegiate community
adjacent to Kent State University, for $45 million in cash.
*EdR closed on the sale of The Reserve at Star Pass — a 1,020-bed
collegiate housing community 4.5 miles from the University of Arizona —for
$25.5 million. These proceeds were utilized to reduce borrowings under the
Company’s unsecured line of credit.
*EdR acquired the ground lease encumbering its 74% owned asset, University
Towers — a 953-bed collegiate community adjacent to North Carolina State
University in Raleigh, N.C. The $7.5 million purchase price included an
attached 454-space parking deck.
“We continue to improve our portfolio by adding high-quality, accretive assets
in strong, growing markets while also selectively recycling capital out of
assets that no longer meet our return criteria,” said Randy Churchey, EdR’s
president and chief executive officer. “With a robust pipeline, low leverage
and the consistent execution of our positioning strategy, we continue to grow
value for our company and our shareholders.”
Additional Information on the Two Community Acquisitions
Texas Tech University — The Centre at Overton Park and The Suites at Overton
Park include 866 beds within 576 units in a variety of unfurnished one-, two-,
three- and four-bedroom styles each with private bedrooms and baths.
Constructed in 2005 and 2009, respectively, amenities include a
controlled-access parking structure with 1,227 spaces, fitness center, study
rooms and a computer lab.
The properties currently are leased to both students and non-students, with an
expected economic occupancy of 88% over the next twelve months and an average
monthly rental rate of $1,103 per unit. EdR will transition the property to
primarily student residents over the next few years. Based on this and other
information, EdR’s purchase price represents an approximate 5.5% economic cap
rate in Year 1 and 6.3% in Year 2.
Since 2006 Texas Tech has steadily increased enrollment and set a record in
Fall 2012 with more than 32,000 undergraduate and graduate students. With a
26% growth through the past decade, the university predicts it will reach an
enrollment of 40,000 by 2020.
Kent State University — The Province opened in Fall 2012. This 596-bed
collegiate community is adjacent to campus and contains a variety of one-,
two-, three- and four-bedroom apartments — each with private bedrooms and
baths. The Province has many amenities, including Wi-Fi, study rooms and a
The average monthly rental rate is $625 per bed, and the community is
currently 98% leased. Based on this leasing and other information, the
purchase price represents an approximate 6.2 % economic cap rate on expected
next 12 months’ net operating income.
In 2012 the university —the second largest in Ohio — increased its enrollment
approximately 3% to 27,700 full-time students according to the university’s
website. Kent State University has also experienced improved retention (up 2%
to 77%) and better student quality with the freshman class having the highest
academic profile in the school’s history.
EdR (NYSE:EDR) is one of America's largest owners, developers and managers of
collegiate housing. A self-administered and self-managed real estate
investment trust, EdR owns or manages — with these transactions — 67
communities in 24 states with more than 37,000 beds within more than 12,000
units. For more information, please visit the company's web site at
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Statements about the company's business that are not historical facts are
"forward-looking statements." Forward-looking statements are based on current
expectations. You should not rely on our forward-looking statements because
the matters they describe are subject to known and unknown risks and
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achievements expressed or implied by such statements. Such risks are set forth
under the captions "Item 1A. Risk Factors" and "Forward-Looking Statements" in
our annual report on Form 10-K and under the caption "Item 2. Management's
Discussion and Analysis of Financial Condition and Results of Operations" (or
similar captions) in 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 dates on which they are made, and 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.
Randall H. Brown, 901-259-2500
Executive Vice President and Chief Financial Officer
Susan Jennings, 901-259-2506
Vice President, Corporate Communications and Marketing
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