EdR Announces Fourth Quarter 2012 Results

  EdR Announces Fourth Quarter 2012 Results

                 - Full Year Core FFO per Share Up Over 9% -

        - Full Year Same-Community Net Operating Income Up Nearly 6% -

Business Wire

MEMPHIS, Tenn. -- February 19, 2013

EdR (NYSE:EDR), one of the nation’s largest developers, owners and managers of
collegiate housing, today announced results for the quarter ended December31,
2012.

Company Highlights

  *Core funds from operations (“Core FFO”) increased 14% to $0.16 per
    share/unit, for the quarter. For the full year, Core FFO increased 9.3% to
    $0.47 per share/unit;
  *Same-community net operating income (“NOI”) for the quarter decreased 2.7%
    on flat revenue and a 3.3% increase in operating expenses. For the full
    year, same-community NOI increased 5.7%;
  *Preleasing for the 2013-2014 lease term is 460 basis points ahead of last
    year with the same-community portfolio 39.1% preleased, compared to 34.5%
    the same time last year;
  *Net rental rate increase of 2.2% anticipated for the 2013-2014 lease term;
  *Borrowing capacity under the credit facility was expanded to $375 million
    in January 2013, with an accordion feature to $500 million and a four-year
    term;
  *Acquired five communities with a total of 2,581 beds for $206.3 million;
  *Entered into a joint venture agreement to develop an $89.2 million,
    901-bed community within two blocks of the University of Minnesota;
  *Sold The Reserve at Star Pass, a 1,020-bed community 4.5 miles from the
    University of Arizona, for $25.5 million;
  *Purchased a 10% interest in Elauwit Networks, an industry-leading provider
    of internet access and high-definition video service, one of the main
    amenities for the student housing industry; and
  *In total, the Company has approximately $442.3 million of potential new
    assets under contract or in development for delivery in 2013 and 2014.

“The recent expansion of our line of credit provides additional financial
flexibility and capacity to take advantage of our many growth opportunities,"
stated Randy Churchey, EdR's president and chief executive officer. "Our
pipeline of new opportunities is robust and we are positioned to drive
earnings growth from our high quality well located communities around the
country."

Net Income Attributable to Common Stockholders

Net income attributable to common stockholders for the quarter was $4.8
million, or $0.04 per diluted share, compared to a loss of $5.8 million, or
$0.07 per diluted share, for the prior year. Operating profits from new
communities, a $7.9 million loss on sale of assets in 2011 and lower interest
expense were the main drivers of the improvement in net income.

Core Funds From Operations

Core FFO for the quarter was $18.1 million, up 44.2%, or $5.5 million, from
the prior year. The improvement in Core FFO reflects an increase in operating
profits from new communities and lower interest expense. Core FFO per
share/unit for the quarter was $0.16 compared to $0.14 in the prior year.

A reconciliation of funds from operations (“FFO”) and Core FFO to net income
is included with the financial tables accompanying this release.

Same-Community Results

Net operating income was $15.0 million for the quarter, a decrease of 2.7%, or
$0.4 million, from the prior year. This decline in operating income was
primarily the result of a 3.3%, or $0.3 million, increase in operating
expenses that was primarily driven by a $0.2 million acceleration in marketing
spend. Net apartment rent showed a slight 0.1% decline in the fourth quarter
as compared to prior year, which was comprised of a 4.1% increase in net
rental rates, offset by a 4.2% decline in occupancies.

Preleasing - Fall 2013

Same-community preleasing for the 2013-2014 lease term is 460 basis points
ahead of the prior year in occupancy with 39.1% of beds preleased for the
fall. Net rental rates for the 2013-2014 lease term are currently projected to
be approximately 2.2% ahead of the prior lease term.

The Company provides a property-by-property leasing schedule in its quarterly
earnings supplement located at
http://www.snl.com/irweblinkx/yearlypresentations.aspx?iid=4095382.

University of Kentucky

In December 2011, the Company was selected by the University of Kentucky
(“UK”) to negotiate the potential revitalization of UK's entire campus housing
portfolio and expansion of such to more than 9,000 beds within five to seven
years (the "UK Campus Housing Revitalization Plan"). The UK Campus Housing
Revitalization Plan is being financed through EdR's On-Campus Equity Plan -
The ONE Plan^SM with EdR leasing, managing and operating the communities.
Construction of Phase I of the plan, a 601-bed community called Central Hall
is on schedule for a summer of 2013 opening.

Construction on phase II of the UK Campus Revitalization Plan, which includes
four communities with 2,317 beds and a total project cost of approximately
$133.7 million, was started in the fourth quarter of 2012 and is on schedule
for a summer 2014 opening.

The Company and UK officials continue to work collaboratively on Phase III,
which is estimated to include delivery of approximately 1,500 beds in the
summer of 2015.

Investment Activity - Developments

Since year end, the Company has entered into a 50/50 joint venture to develop
an $89.2 million, 901-bed community within two blocks of the University of
Minnesota. The community will be developed by our partner with collaborative
work on design and site plans. EdR will manage the community when it opens in
the summer of 2014.

“Our existing $190.4 million of Company owned 2013 developments continue to
progress nicely, costs are in line and construction is on pace for the
targeted opening dates.” stated Tom Trubiana, EdR’s executive vice president
and chief investment officer. “Furthermore, with an aggregate $442 million of
potential new assets under contract or in development for delivery in 2013 and
2014, we continue to find and convert attractive investment opportunities that
meet our quality, location and return criteria.”

Investment Activity - Acquisitions

As previously announced, the Company completed the acquisitions of five
communities with a total of 2,581 beds for $206.3 million. These transactions
included;

  *The District on 5th, a 764-bed community located within walking distance
    of the University of Arizona for $66.4 million,
  *Campus Village, a 355-bed community adjacent to Michigan State University
    in East Lansing, MI for $20.9 million,
  *The Province, a 596-bed community adjacent to Kent State University, for
    $45.0 million,
  *The Suites at Overton Park and The Centre at Overton Park an aggregate of
    866 beds adjacent to Texas Tech University for a combined $74.0 million.

In December 2012, the Company purchased a 10% interest in Elauwit Networks -
an industry-leading provider of internet access, high-definition video and
telephone service. While the initial investment for this minority partnership
was nominal for EdR, it provides a variety of potential benefits, including
reduced network operating costs along with opportunities to create innovative
enhancements and generate ancillary income.

Capital Structure

In January 2013, the Company amended its credit facility, increasing the
facility from $175 million to $375 million. The amended facility contains an
accordion feature allowing the Company to increase the size of the facility to
$500 million. The initial term of the facility is four years with one 12-month
extension available under certain conditions. At the borrower’s option, the
interest rate per annum is equal to a base rate or LIBOR plus an applicable
margin ranging from 145 to 205 basis points, depending upon leverage.

At December31, 2012, the Company had cash and cash equivalents totaling $17.0
million and availability on its unsecured revolving credit facility of $296.0
million, considering the subsequent expansion as noted above. The Company’s
debt to gross assets was 31.7%, its net debt to Adjusted EBITDA was 5.7x and
its interest coverage ratio was 4.2x.

Earnings Guidance and Outlook

Based upon the Company's current estimates, Core FFO per share/unit is
expected to be in the range of $0.53 to $0.57 for the full year ending
December 31, 2013, which represents a 13% to 21% increase over 2012. The
following assumptions were used by management:

  *Full year same-community revenue growth of 1% to 3%, including revenue
    growth of 3% to 5% for fall 2013, and operating expense growth of 2.5% to
    3.5% for the year, resulting in NOI growth of 3% to 6% in the fall and NOI
    flat to up 3% for the full year;
  *NOI of $6.0 million to $6.5 million from 2013 development deliveries,
    excluding pre-opening expenses;
  *Third-party development and management fees from existing contracts of
    approximately $5.5 million, respectively, with related general and
    administrative costs of approximately $6.5 million;
  *General and administrative expense is expected to increase 5% to $7.2
    million. This estimate does not include acquisition or development pursuit
    cost as our guidance does not include these types of transactions;
  *Ground lease expense is expected to be $6.3 million, which includes $4.4
    million of straight-lined ground rent that will be excluded from Core FFO;
  *Preopening expenses related to development deliveries of approximately
    $2.0 million;
  *Interest expense is expected to be between $17.0 and $20.0 million, net of
    capitalized interest of $6.0 million to $7.0 million; and
  *Full year weighted average shares/units of 114.9 million.

The guidance for 2013 does not include the impact of any new third-party
development or management contracts, acquisitions including pre-sale
agreements or purchase options, dispositions, additional ONE Plan^SM
developments or capital transactions.

Webcast and Conference Call

EdR will host a conference call for investors and other interested parties
beginning at 10:00 a.m. Eastern Time on Tuesday, February 19, 2013. The call
will be hosted by Randy Churchey, president and chief executive officer, and
Randy Brown, executive vice president and chief financial officer.

The conference call will be accessible by telephone and the Internet. To
access the call, participants in the U.S. may dial (877) 705-6003, and
participants outside the U.S. may dial (201) 493-6725. Participants may also
access the call via live webcast by visiting the company’s investor relations
Web site at www.EdRTrust.com.

The replay of the call will be available at approximately 1:00 p.m. Eastern
Time on February 19, 2013 through midnight Eastern Time on February 26, 2013.
To access the replay, the domestic dial-in number is (877) 870-5176, the
international dial-in number is (858) 384-5517, and the passcode is 408010.
The archive of the webcast will be available on the company’s website for a
limited time.

About EdR

EdR (NYSE:EDR) is one of America’s largest owners, developers and managers of
collegiate housing. EdR is a self-administered and self-managed real estate
investment trust that owns or manages 67 communities in 24 states with over
37,000 beds within more than 12,500 units. For more information please visit
the company's website at www.EdRTrust.com.

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 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 EdR's most recent annual report on Form 10-K and quarterly
reports on Form 10-Q, and as described in EdR's 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.

Non-GAAP Financial Measures

Funds from Operations (FFO)

As defined by the National Association of Real Estate Investment Trusts, FFO
represents net income (loss) (computed in accordance with U.S. generally
accepted accounting principles ("GAAP")), excluding gains (or losses) from
sales of property, plus real estate-related depreciation and amortization and
after adjustments for unconsolidated partnerships and joint ventures.
Adjustments for unconsolidated partnerships and joint ventures will be
calculated to reflect FFO on the same basis. The Company presents FFO
available to all stockholders and unitholders because management considers it
to be an important supplemental measure of the Company’s operating
performance, believes it assists in the comparison of the Company’s operating
performance between periods to that of different REITs and believes it is
frequently used by securities analysts, investors and other interested parties
in the evaluation of REITs, many of which present FFO when reporting their
operating results. As such, the Company also excludes the impact of
noncontrolling interests, only as they relate to operating partnership units,
in the calculation. FFO is intended to exclude GAAP historical cost
depreciation and amortization of real estate and related assets, which assumes
that the value of real estate diminishes ratably over time. Historically,
however, real estate values have risen or fallen with market conditions.
Because FFO excludes depreciation and amortization unique to real estate,
gains and losses from property dispositions and extraordinary items, it
provides a performance measure that, when compared year over year, reflects
the impact to operations from trends in occupancy rates, rental rates,
operating costs, development activities and interest costs, providing
perspective not immediately apparent from net income. 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.

The Company also uses core funds from operations, or Core FFO, as an operating
measure. Core FFO is defined as FFO adjusted to include the economic impact of
revenue on participating projects for which recognition is deferred for GAAP
purposes. The adjustment for this revenue is calculated on the same percentage
of completion method used to recognize revenue on third-party development
projects. Core FFO also includes adjustments to exclude the impact of
straight-line adjustment for ground leases, gains/losses on extinguishment of
debt, transaction costs related to acquisitions and reorganization or
severance costs. The Company believes that these adjustments are appropriate
in determining Core FFO as they are not indicative of the operating
performance of the Company’s assets. In addition the Company believes that
Core FFO is a useful supplemental measure for the investing community to use
in comparing the Company to other REITs as most REITs provide some form of
adjusted or modified FFO.

Net Operating Income (NOI)

The Company considers NOI to be a useful measure of its collegiate housing
operating performance. The Company defines NOI as rental and other
community-level revenues earned from our collegiate housing communities less
community-level operating expenses, excluding management fees, depreciation,
amortization, ground lease expense and impairment charges and including
regional and other corporate costs of supporting the communities. Other REITs
may use different methodologies for calculating NOI, and accordingly, the
Company's NOI may not be comparable to other REITs. The Company believes that
this measure provides an operating perspective not immediately apparent from
GAAP operating income or net income. The Company uses NOI to evaluate
performance on a community-by-community basis because it allows management to
evaluate the impact that factors such as lease structure, lease rates and
tenant base, which vary by property, have on the Company’s operating results.
However, NOI should only be used as an alternative measure of the Company’s
financial performance.

Adjusted Earnings before Interest, Taxes, Depreciation and Amortization
(Adjusted EBITDA)

Adjusted EBITDA is defined as net income or loss excluding: (1) straight line
adjustment for ground leases; (2) acquisition costs; (3) depreciation and
amortization; (4) loss on impairment of collegiate housing assets; (5) gain on
sale of collegiate housing assets; (6) interest expense; (7) other
non-operating expense (income); (8) income tax expense (benefit); (9)
non-controlling interest; (10) applicable expenses related to discontinued
operations; and (11) budgeted EBITDA for properties owned less than 12 months
so that a full 12 months of EBITDA is reflected for acquisitions. EBITDA is
not adjusted for properties under development for ownership by the Company
until the properties open. We consider Adjusted EBITDA useful to an investor
in evaluating and facilitating comparisons of our operating performance
between periods and between REITs by removing the impact of our capital
structure (primarily interest expense) and asset base (primarily depreciation
and amortization) from our operating results.

                                                        
                                                                           
EdR AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share data)
                                                                           
                                         December31, 2012   December31, 2011
                                         (unaudited)
Assets
Collegiate housing properties, net       $   1,061,002       $   803,519
Assets under development                 159,264             56,648
Cash and cash equivalents                17,039              75,813
Restricted cash                          6,410               4,826
Other assets                             80,972             37,003        
                                                                           
Total assets                             $   1,324,687      $   977,809   
                                                                           
Liabilities and equity
Liabilities:
Mortgage and construction loans,         $   398,846         $   358,504
net of unamortized premium
Unsecured revolving credit               79,000              —
facility
Accounts payable and accrued             57,123              31,766
expenses
Deferred revenue                         17,964             14,409        
Total liabilities                        552,933            404,679       
                                                                           
Commitments and contingencies            —                   —
                                                                           
Redeemable noncontrolling                8,944               9,776
interests
                                                                           
Equity:
EdR stockholders’ equity:
Common stock, $0.01 par value per
share, 200,000,000 shares                1,131               918
authorized, 113,062,452 and
91,800,688 shares issued and                               
outstanding as of December 31,
2012 and December 31, 2011,                                
respectively
Preferred shares, $0.01 par value,
50,000,000 shares authorized, no         —                   —
shares issued and outstanding
Additional paid-in capital               849,878             662,657
Accumulated deficit                      (93,287        )    (101,708      )
Total EdR stockholders’ equity           757,722            561,867       
Noncontrolling interests                 5,088              1,487         
Total equity                             762,810            563,354       
                                                                           
Total liabilities and equity             $   1,324,687      $   977,809   

                                            
                                               
EdR AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
                                               
                                               Three months ended December31,
                                               2012             2011
                                               (unaudited)
Revenues:
Collegiate housing leasing revenue             $   39,614        $  28,933
Third-party development services               330               622
Third-party management services                995               911
Operating expense reimbursements               2,179            2,228      
Total revenues                                 43,118           32,694     
                                                                 
Operating expenses:
Collegiate housing leasing operations          16,129            11,734
Development and management services            1,510             1,392
General and administrative                     1,512             1,796
Development pursuit and acquisition costs      496               336
Ground leases                                  1,680             1,401
Depreciation and amortization                  11,001            7,603
Reimbursable operating expenses                2,179            2,228      
Total operating expenses                       34,507           26,490     
                                                                 
Operating income                               8,611            6,204      
                                                                 
Nonoperating expenses:
Interest expense                               3,449             4,221
Amortization of deferred financing costs       304               314
Interest income                                (131        )     (46        )
Total nonoperating expenses                    3,622            4,489      
                                                                 
Income before equity in (losses) of
unconsolidated entities, income taxes and      4,989             1,715
discontinued operations
                                                                 
Equity in (losses) of unconsolidated           (23         )     (39        )
entities
Income before income taxes and                 4,966             1,676
discontinued operations
Less: Income tax expense                       233              183        
Income from continuing operations              4,733             1,493
Income (loss) from discontinued operations     244              (7,093     )
Net income (loss)                              4,977             (5,600     )
                                                                 
Less: Net income attributable to the           189              179        
noncontrolling interests
Net income (loss) attributable to EdR          $   4,788        $  (5,779  )
common stockholders
                                                                 
Earnings per share information:
Net income (loss) attributable to EdR
common stockholders per share – basic &        $   0.04         $  (0.07   )
diluted:
                                                                 
Weighted-average share of common stock         113,027          85,790     
outstanding – basic
Weighted-average share of common stock         114,086          85,790     
outstanding – diluted

                                                  
                                                     
EdR AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands except per share data)
                                                     
                                                     Year ended December31,
                                                     2012         2011
                                                     (unaudited)
Revenues:
Collegiate housing leasing revenue                   $ 131,092     $ 98,491
Third-party development services                     820           4,103
Third-party management services                      3,446         3,336
Operating expense reimbursements                     9,593        8,604     
Total revenues                                       144,951      114,534   
                                                                   
Operating expenses:
Collegiate housing leasing operations                63,194        48,789
Development and management services                  6,268         5,506
General and administrative                           6,803         6,215
Development pursuit and acquisition costs            1,105         595
Ground leases                                        6,395         5,498
Depreciation and amortization                        35,436        25,961
Reimbursable operating expenses                      9,593        8,604     
Total operating expenses                             128,794      101,168   
                                                                   
Operating income                                     16,157       13,366    
                                                                   
Nonoperating expenses:
Interest expense                                     14,390        17,274
Amortization of deferred financing costs             1,215         1,197
Interest income                                      (283      )   (175      )
Loss on extinguishment of debt                       —            351       
Total nonoperating expenses                          15,322       18,647    
                                                                   
Income (loss) before equity in (losses) of
unconsolidated entities, income taxes and            835           (5,281    )
discontinued operations
                                                                   
Equity in (losses) of unconsolidated entities        (363      )   (447      )
Income (loss) before income taxes and                472           (5,728    )
discontinued operations
Income tax benefit                                   (884      )   (95       )
Income (loss) from continuing operations             1,356         (5,633    )
Income (loss) from discontinued operations           7,281        (5,142    )
Net income (loss)                                    8,637         (10,775   )
                                                                   
Less: Net income attributable to the                 216          239       
noncontrolling interests
Net income (loss) attributable to EdR Common         $ 8,421      $ (11,014 )
Stockholders
                                                                   
Earnings per share information:
Net income (loss) attributable to EdR common         $ 0.08       $ (0.15   )
stockholders per share – basic & diluted:
                                                                   
Weighted-average share of common stock               101,244      75,485    
outstanding – basic
Weighted-average share of common stock               102,317      75,485    
outstanding – diluted

                                                   
                                                      
EdR AND SUBSIDIARIES
CALCULATION OF FFO AND CORE FFO
(Amounts in thousands, except per share data)
(Unaudited)
                                                      
                     Three months ended               Year ended December31,
                     December31,
                     2012            2011            2012        2011
                                                                   
                                                                   
Net income (loss)
attributable to      $  4,788         $  (5,779  )    $ 8,421      $ (11,014 )
EdR
                                                                   
(Gain) loss on
sale of collegiate   (69        )     7,859           (5,496   )   5,471
housing assets (1)
Real estate
related              11,038           8,304           37,237       29,101
depreciation and
amortization
Equity portion of
real estate
depreciation and     47               83              225          412
amortization on
equity investees
Equity portion of
loss on sale of
student housing      —                —               88           256
property on equity
investees
Noncontrolling       168             184            305         244       
interests
FFO                  $  15,972        $  10,651       $ 40,780     $ 24,470
FFO adjustments:
Loss on
extinguishment of    —                —               —            757
debt (1)
Acquisition costs    501              261             1,110        741
Straight-line
adjustment for       1,156           1,051          4,364       4,208     
ground leases (2)
FFO adjustments      1,657            1,312           5,474        5,706
                                                                   
FFO on
Participating
Developments: (3)
Interest on loan
to Participating     460              460             1,830        1,598
Development
Development fees
on Participating     —               124            91          887       
Development, net
of costs and tax
FFO on
Participating        460              584             1,921        2,485
Developments
                                                                   
Core FFO             $  18,089       $  12,547      $ 48,175    $ 32,661  
                                                                   
FFO per weighted
average share/unit   $  0.14         $  0.12        $ 0.40      $ 0.32    
(4)
                                                                   
Core FFO per
weighted average     $  0.16         $  0.14        $ 0.47      $ 0.43    
share/unit (4)
                                                                   
Weighted average     114,086         86,901         102,317     76,596    
shares/units (4)

Notes:
(1) All or a portion of these amounts are included in discontinued operations
    and are not visible on the face of our statement of operations.
    This represents the straight-line rent expense adjustment required by GAAP
    related to ground leases at four communities. As the ground lease terms
(2) 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.
    FFO on Participating Developments represents the economic impact of
    interest and fees not recognized in net income due to the Company having a
(3) participating investment in the third-party development. The adjustment
    for development fees is recognized 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.
    FFO and Core FFO per weighted average share/unit were computed using the
(4) weighted average of all shares and operating partnership units
    outstanding, regardless of their dilutive impact.

                                                
                                                  
EdR AND SUBSIDIARIES
2013 GUIDANCE – RECONCILIATION OF FFO and CORE FFO
(Amounts in thousands, except per share data)
(Unaudited)
                                                  
                                                  Year Ended December31, 2013
                                                  Low End         High End
                                                                   
                                                                   
Net income attributable to EdR                    $  7,505         $  12,456 
                                                                   
Real estate related depreciation and              45,515          45,515
amortization
Equity portion of real estate depreciation and    192              192
amortization on equity investees
Noncontrolling interests                          298             258       
FFO                                               $  53,510        $  58,421
                                                                   
FFO adjustments:
Acquisition costs                                 600              600
Straight-line adjustment for ground leases (1)    4,386           4,386     
FFO adjustments                                   4,986            4,986
                                                                   
FFO on Participating Developments: (2)
Interest on loan to Participating Development     1,830           1,830     
FFO on Participating Developments                 1,830            1,830
                                                                   
Core FFO                                          $  60,326       $  65,237 
                                                                   
FFO per weighted average share/unit (3)           $  0.47         $  0.51   
                                                                   
Core FFO per weighted average share/unit (3)      $  0.53         $  0.57   
                                                                   
Weighted average shares/units (3)                 114,859         114,859   

Notes:
    This represents the straight-line rent expense adjustment required by GAAP
    related to ground leases at four communities. As the ground lease terms
(1) 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.
    FFO on participating developments represents the economic impact of
    interest and fees not recognized in net income due to the Company having a
(2) participating investment in the third-party development. The adjustment
    for development fees is recognized 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.
    FFO and Core FFO per weighted average share/unit were computed using the
(3) weighted average of all shares and operating partnership units
    outstanding, regardless of their dilutive impact.

                                                  
                                                     
EdR AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(Unaudited)
                                                     
The following is a reconciliation of the Company's GAAP operating income to
NOI for three and twelve months ended December 31, 2012 and 2011 (in
thousands):
                                                     
                   For the three months ended        For the year ended
                   December31,                      December31,
                 2012            2011           2012         2011
Operating          $  8,611         $ 6,204        $ 16,157     $ 13,366 
income
Less:
Third-party
development        330                622            820            4,103
services
revenue
Less:
Third-party
management         995                911            3,446          3,336
services
revenue
Plus: General
and                3,518              3,524          14,176         12,316
administrative
expenses
Plus: Ground       1,680              1,401          6,395          5,498
leases
Plus:
Depreciation      11,001          7,603       35,436      25,961   
and
amortization
NOI               $  23,485       $ 17,199    $ 67,898    $ 49,702 


The following is a reconciliation of the Company's GAAP net income to Adjusted
EBITDA for the year ended December31, 2012 (in thousands):
                                          
                                              Year Ended December31, 2012
     Net income attributable to common          $        8,421
     shareholders
     Straight line adjustment for ground        4,364
     leases
     Acquisition costs                          1,110
     Depreciation and amortization              35,436
     Depreciation and amortization -            2,438
     discontinued operations
     Gain on sale of collegiate housing         (5,496                )
     assets - discontinued operations
     Loss on sale of equity investee            88
     Interest expense, net                      14,390
     Other nonoperating expense                 932
     Income tax benefit                         (884                  )
     Non-controlling interests                  216                   
     Adjusted EBITDA                            $        61,015
     Pro Forma EBITDA for                       19,024                
     acquisitions/developments
     Pro Forma Adjusted EBITDA                  $        80,039       

Contact:

ICR, LLC
Brad Cohen, 203-682-8211
bcohen@icrinc.com
or
EdR
Randy Brown, 901-259-2500
Executive Vice President and Chief Financial Officer
or
EdR
J. Drew Koester, 901-259-2500
Senior Vice President and Chief Accounting Officer