Education Realty Trust, Inc. - FORM 8-K - EX-99.2 - FIRST QUARTER 2014 SUPPLEMENTAL FINANCIAL REPORT

Attached files

file	filename
8-K - 8-K - Education Realty Trust, Inc.	a8-kannouncing1q2014earnin.htm
EX-99.1 - EXHIBIT 99.1 PRESS RELEASE DATE APRIL 28, 2014 - Education Realty Trust, Inc.	a2014-q1edrearningsrelease.htm



		FINANCIAL HIGHLIGHTS



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



OPERATING DATA:
		Three months ended March 31,
		2014			2013			$ Chg		% Chg

	Same-community revenue	$	37,411		$	36,308		$	1,103	3.0	%
	Total community revenue	50,711			39,453			11,258		28.5	%
	Total revenue	54,545			44,671			9,874		22.1	%

	Same-community net operating income	21,398			20,996			402		1.9	%
	Total community net operating income	28,543			21,734			6,809		31.3	%
	Total operating income	8,312			7,113			1,199		16.9	%

	Net income	12,066			3,309			8,757		264.6	%
	Per share - basic & diluted	$	0.10		$	0.03		$	0.07	233.3	%

	Funds from operations (FFO)	17,050			14,609			2,441		16.7	%
	Per weighted average share/unit ⁽¹⁾	$	0.15		$	0.13		$	0.02	15.4	%

	Core funds from operations (Core FFO)	19,361			16,379			2,982		18.2	%
	Per weighted average share/unit ⁽¹⁾	$	0.17		$	0.14		$	0.03	21.4	%

BALANCE SHEET DATA:
		3/31/2014			12/31/2013
	Debt to gross assets	43.4		%	42.8		%
	Net debt to enterprise value	40.7		%	42.5		%
	Interest coverage ratio (TTM)	4.5		x	4.6		x
	Net debt to EBITDA - Adjusted (TTM)	6.2		x	6.3		x

⁽¹⁾ FFO and Core FFO per share/unit were computed using weighted average shares and units outstanding, regardless of their dilutive impact. See page 4 for a detailed calculation.



FIRST QUARTER 2014		1



		BALANCE SHEET



(Amount in thousands, except share and per share data)		March 31, 2014			December 31, 2013
Assets		(unaudited)
	Collegiate housing properties, net ⁽¹⁾	$	1,345,860		$	1,388,885
	Assets under development	168,182			116,787
	Cash and cash equivalents	8,969			22,073
	Restricted cash	29,161			12,253
	Other assets	77,790			70,567
Total assets		$	1,629,962		$	1,610,565

Liabilities and equity
Liabilities:
	Mortgage and construction loans, net of unamortized premium	$	389,735		$	422,681
	Unsecured revolving credit facility	219,900			356,900
	Unsecured term loan	187,500			—
	Accounts payable and accrued expenses	73,200			67,646
	Deferred revenue	22,249			23,498
Total liabilities		892,584			870,725

Commitments and contingencies		—			—

Redeemable noncontrolling interests		10,035			9,871

Equity:
EdR stockholders' equity:
	Common stock, $0.01 par value per share, 200,000,000 shares authorized, 114,877,873 and 114,740,155 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively	1,149			1,148
	Preferred stock, $0.01 par value per share, 50,000,000 shares authorized, no shares issued and outstanding	—			—
	Additional paid-in capital	800,633			813,540
	Accumulated deficit	(76,898		)	(88,964		)
	Accumulated other comprehensive income	(1,363		)	—
Total EdR stockholders' equity		723,521			725,724
Noncontrolling interest		3,822			4,245
Total equity		727,343			729,969

Total liabilities and equity		$	1,629,962		$	1,610,565

(1) Amount is net of accumulated depreciation of $202,789 and $204,181 as of March 31, 2014 and December 31, 2013, respectively.



FIRST QUARTER 2014		2



		OPERATING RESULTS



(Amounts in thousands, except per share data, unaudited)	Three months ended March 31,
	2014			2013			$ Change
Revenues:
Collegiate housing leasing revenue	$	50,711		$	39,453		$	11,258
Third-party development consulting services	802			391			411
Third-party management services	1,018			969			49
Operating expense reimbursements	2,014			3,858			(1,844		)
Total revenues	54,545			44,671			9,874
Operating expenses:
Collegiate housing leasing operations	22,168			17,719			4,449
Development and management services	2,341			1,771			570
General and administrative	2,117			1,834			283
Development pursuit and acquisition costs	1			189			(188		)
Depreciation and amortization	13,783			10,599			3,184
Ground lease expense	1,899			1,588			311
Loss on impairment of collegiate housing properties	1,910			—			1,910
Reimbursable operating expenses	2,014			3,858			(1,844		)
Total operating expenses	46,233			37,558			8,675
Operating income	8,312			7,113			1,199
Nonoperating expenses:
Interest expense	5,601			4,054			1,547
Amortization of deferred financing costs	503			420			83
Interest income	(70		)	(119		)	49
Loss on extinguishment of debt	649			—			649
Total nonoperating expenses	6,683			4,355			2,328
Income before equity in earnings (losses) of unconsolidated entities, income taxes, discontinued operations and gain on sale of collegiate housing communities	1,629			2,758			(1,129		)
Equity in earnings (losses) of unconsolidated entities	(22		)	(20		)	(2		)
Income before income taxes, discontinued operations, and gain on sale of collegiate housing properties	1,607			2,738			(1,131		)
Income tax expense (benefit)	45			(237		)	282
Income from continuing operations	1,562			2,975			(1,413		)
Income from discontinued operations	—			503			(503		)
Gain on sale of collegiate housing properties	10,902			—			10,902
Net income	12,464			3,478			8,986
Less: Net income attributable to the noncontrolling interests	398			169			229
Net income attributable to Education Realty Trust, Inc.	$	12,066		$	3,309		$	8,757

Other comprehensive loss:
Loss on cash flow hedging derivatives	(1,363		)	—			(1,363		)
Comprehensive income	$	10,703		$	3,309		$	7,394

Earnings per share information:
Net income attributable to Education Realty Trust, Inc. common stockholders per share – basic and diluted	$	0.10		$	0.03		$	0.07
Weighted average shares of common stock outstanding – basic	115,014			113,635
Weighted average shares of common stock outstanding – diluted	116,052			114,673



FIRST QUARTER 2014		3



		FUNDS FROM OPERATIONS



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

		Three months ended March 31,
		2014			2013		$ Change
Net income attributable to EdR		$	12,066		$	3,309	$	8,757

	Gain on sale of collegiate housing assets	(10,902		)	—		(10,902		)
	Impairment losses ⁽¹⁾	1,910			—		1,910
	Real estate related depreciation and amortization	13,622			11,083		2,539
	Equity portion of real estate depreciation and amortization on equity investees	49			48		1
	Noncontrolling interests	305			169		136
Funds from operations ("FFO")		17,050			14,609		2,441

FFO adjustments:
	Loss on extinguishment of debt	649			—		649
	Acquisition costs	—			227		(227		)
	Straight-line adjustment for ground leases ⁽²⁾	1,212			1,093		119
FFO adjustments:		1,861			1,320		541

FFO on Participating Developments:⁽³⁾
	Interest on loan to Participating Development	450			450		—
FFO on Participating Developments		450			450		—

Core funds from operations ("Core FFO")		$	19,361		$	16,379	$	2,982

FFO per weighted average share/unit ⁽⁴⁾		$	0.15		$	0.13	$	0.02
Core FFO per weighted average share/unit ⁽⁴⁾		$	0.17		$	0.14	$	0.03

Weighted average shares/units ⁽⁴⁾		116,052			114,673		1,379

⁽¹⁾The impairment charge relates an asset sold during the three months ended March 31, 2014.
⁽²⁾ Represents the straight-line rent expense adjustment required by GAAP related to ground leases. As ground lease terms range from 40 to 99 years, the adjustment to straight-line these agreements becomes material to our operating results, distorting the economic results of the communities.
⁽³⁾ FFO on Participating Developments represents the economic impact of interest and fees not recognized in net income due to the Company having a participating investment in the third-party development. The adjustment for interest income is based on terms of the loan.
⁽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.



FIRST QUARTER 2014		4



	COMMUNITY OPERATING RESULTS



(Amounts in thousands, unaudited)

		Three months ended March 31,
		2014		2013		$ Change				% Change
Revenues
	Same-communities	$	37,411	$	36,308	$	1,103			3.0	%	⁽⁴⁾
	New-communities ⁽¹⁾	11,771		1,519		10,252				NM
	Sold-communities ⁽³⁾	1,529		1,626		(97		)		NM
Total revenues		50,711		39,453		11,258				28.5	%

Operating expenses ⁽²⁾
	Same-communities	16,013		15,312		701			⁽⁵⁾	4.6	%
	New-communities ⁽¹⁾	5,232		1,479		3,753				NM
	Sold-communities ⁽³⁾	923		928		(5		)		NM
Total operating expenses		22,168		17,719		4,449				25.1	%

Net operating income
	Same-communities	21,398		20,996		402				1.9	%
	New-communities ⁽¹⁾	6,539		40		6,499				NM
	Sold-communities ⁽³⁾	606		698		(92		)		NM
Total net operating income		$	28,543	$	21,734	$	6,809			31.3	%



⁽¹⁾ See page 17 of this supplement for a listing of which communities are categorized as same-communities and which are new-communities.
⁽²⁾ Represents community level operating expenses, excluding management fees, depreciation, amortization, ground lease expense and impairment charges, plus regional and other corporate costs of supporting the communities.
⁽³⁾ Effective January 1, 2014, the Trust adopted the new accounting guidance relating to the reporting of discontinued operations. It is anticipated that the Trust's one-off property dispositions will no longer qualify as discontinued operations. This category represents the operating results of sold communities prior to their disposition.
⁽⁴⁾Same community revenue for the quarter increased 3.0% as compared to the prior year with a 2.9% increase in rental rates, a 0.3% improvement in occupancy and a 0.2% decline in other income. Consistent with Company policy, at the beginning of each calendar year the same-community portfolio mix changes when all properties owned and managed by EdR for the entire previous calendar year are moved into the same-community portfolio. Six properties were moved into the same-community portfolio on January 1, 2014. Without this impact on the same-community mix, revenue was up 4.2% for the quarter.
⁽⁵⁾ The $0.7 million increase in operating expenses was mainly due to a $0.3 million increase in utility costs from extreme weather across the country and an expected rise in real estate taxes of $0.4 million.



FIRST QUARTER 2014		5



	SAME-COMMUNITY EXPENSES BY CATEGORY



(amounts in thousands, except bed and per-bed data)
	Three months ended March 31, 2014						Three months ended March 31, 2013
	Amount		Per Bed		% of Total Operating Expenses		Amount		Per Bed		$ Change				% Change
Utilities ⁽¹⁾	$	4,962	$	234	31	%	$	4,643	$	219	$	319			6.9	%
On-Site Payroll	2,883		136		18	%	2,844		134		39				1.4	%
General & Administrative ⁽²⁾	2,653		125		17	%	2,690		127		(37		)		(1.4	)%
Maintenance & Repairs ⁽³⁾	949		45		6	%	988		47		(39		)		(3.9	)%
Marketing	947		45		6	%	910		43		37				4.1	%
Total Direct Operating Expenses	$	12,394	$	585	77	%	$	12,075	$	570	$	319			2.6	%

Real Estate Taxes	3,149		148		20	%	2,737		129		412				15.1	%
Insurance	470		22		3	%	500		24		(30		)		(6.0	)%
Total Fixed Operating Expenses	$	3,619	$	170	23	%	$	3,237	$	153	$	382			11.8	%
Total Property Operating Expenses	$	16,013	$	755	100	%	$	15,312	$	723	$	701		⁽⁴⁾	4.6	%


Same-community beds	21,223


⁽¹⁾Represents gross costs before recoveries and includes student amenities such as internet.
⁽²⁾ Includes property-level general and administrative cost, dining and retail 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.
⁽⁴⁾ The $0.7 million increase in operating expenses was mainly due to a $0.3 million increase in utility costs from extreme weather across the country and an expected rise in real estate taxes of $0.4 million.



FIRST QUARTER 2014		6



	COMMUNITY STATISTICS



	Three Months Ended March 31,
	2014			2013			Change

Occupancy
Physical	92.8		%	91.7		%	110		bps
Economic	91.9		%	90.2		%	170		bps

NarPAB	$	580		$	526		10.3	%
Other income per avail. bed	$	36		$	39		(7.7	)%
RevPAB	$	616		$	565		9.0	%

Operating expense per bed	$	269		$	254		5.9	%

Operating margin	56.3		%	55.1		%	120		bps

Design Beds	82,266			69,780			17.9	%

NOTE: Operating statistics for the prior year exclude communities classified as discontinued operations. Effective January 1, 2014, the Trust adopted the new accounting guidance relating to the reporting of discontinued operations. It is anticipated that the Trust's one-off property dispositions will no longer quality as discontinued operations.



FIRST QUARTER 2014		7



		SAME-COMMUNITY STATISTICS



	Three Months Ended March 31,
	2014			2013			Change

Occupancy
Physical	93.3		%	92.9		%	40		bps
Economic	93.0		%	90.9		%	210		bps

NarPAB	$	556		$	539		3.2	%
Other income per avail. bed	$	31		$	31		(0.2	)%
RevPAB	$	587		$	570		3.0	%

Operating expense per bed	$	252		$	240		4.6	%

Operating margin	57.2		%	57.8		%	(60	)	bps

Design Beds ⁽¹⁾	63,669			63,669			—	%



⁽¹⁾In June 2013 we converted 64 historically double occupancy rooms at University Towers to single occupancy. This reduced design beds by 64 beds. In August, we reconfigured rooms at the Berk reducing design beds by 2. As these changes did not impact occupied beds they were made to the prior year design beds so that information between periods is comparable.



FIRST QUARTER 2014		8



	PRELEASING SUMMARY



						Preleasing at April 21,
	Design Beds	% of NOI		2013 Opening Occupancy		2014		2013		Preleasing Ahead/(Behind)		Projected Rate Growth

Same-Communities - by Tier
Prior Year Occupancy Below 90% (Tier 1)	4,173	12.9	%	82.7	%	58.0	%	48.3	%	9.7	%	(0.4	)%
Prior Year Occupancy 90% to 94.9% (Tier 2)	5,992	26.7	%	92.3	%	60.9	%	55.6	%	5.3	%	0.9	%
Prior Year Occupancy 95% to 97.9% (Tier 3)	5,514	21.2	%	96.4	%	66.5	%	65.5	%	1.0	%	3.1	%
Subtotal - Tiers 1 - 3	15,679	60.8	%	91.2	%	62.1	%	57.1	%	5.0	%
Prior Year Occupancy 98% and Above (Tier 4)	8,235	39.2	%	99.8	%	86.9	%	87.7	%	(0.8	)%	2.8	%
Total Same-Communities ⁽¹⁾	23,914	100.0	%	94.2	%	70.6	%	67.6	%	3.0	%	2.0	%
Total New-Communities ⁽¹⁾	3,024					70.4	%
Total Communities	26,938					70.6	%

Projected Fall Revenue:
Based on current leasing velocity shown above and individual market conditions, we are projecting fall revenue to be up 3% to 4%, including a 1% to 2% increase in occupancy and an approximate 2% growth in net rental rates.



NOTE: Leasing update does not include 601 same-community and 2,381 new-community beds at the University of Kentucky. Although the university's assignment process does not occur until May, all 2,982 beds are currently 181% applied for this fall.

(1) The same-community designation for leasing purposes is different than for financial statement purposes. A community is considered same-community for leasing when the Company has managed the leasing process for at least two leasing cycles, including the Fall 2014 lease cycle. New-communities include existing new communities listed on page 17 that are not ticked (1) and all more than 50% owned developments delivering in 2014, including the presale at FIU and excluding Kentucky per the note above.



FIRST QUARTER 2014		9



	SAME-COMMUNITY PRELEASING BY REGION AND DISTANCE



						Preleasing at April 21,
	Design Beds	% of NOI		2013 Opening Occupancy		2014		2013		Preleasing Ahead/(Behind)		Projected Rate Growth

Same-Communities - by Region ⁽¹⁾
Mid-Atlantic	4,724	28.1	%	97.2	%	84.4	%	79.8	%	4.6	%	2.4	%
Midwest	2,636	8.7	%	92.2	%	57.8	%	59.8	%	(2.0	)%	2.5	%
North	2,547	10.1	%	97.0	%	83.1	%	74.0	%	9.1	%	3.1	%
South Central	4,094	21.3	%	97.0	%	79.4	%	71.4	%	8.0	%	3.3	%
Southeast	7,821	22.6	%	94.0	%	58.9	%	63.9	%	(5.0	)%	1.0	%
West	2,092	9.2	%	81.5	%	67.4	%	48.9	%	18.5	%	(1.4	)%
Total Same-Communities	23,914	100.0	%	94.2	%	70.6	%	67.6	%	3.0	%	2.0	%


Same-Communities - by Distance from Campus
0-0.2 miles	13,127	65.2	%	93.8	%	76.1	%	68.1	%	8.0	%	2.1	%
0.21-0.49 miles	2,720	8.9	%	90.7	%	69.4	%	62.0	%	7.4	%	(0.1	)%
0.5-0.99 miles	2,006	6.7	%	96.1	%	68.9	%	69.6	%	(0.7	)%	2.8	%
1.0-1.99 miles	4,946	16.2	%	95.9	%	57.6	%	68.9	%	(11.3	)%	2.0	%
2.0 & > miles	1,115	3.0	%	96.2	%	70.6	%	67.2	%	3.4	%	1.1	%
Total Same-Communities	23,914	100.0	%	94.2	%	70.6	%	67.6	%	3.0	%	2.0	%

NOTE: Leasing update does not include 601 same-community and 2,381 new-community beds at the University of Kentucky. Although the university's assignment process does not occur until May, all 2,982 beds are currently 181% applied for this fall.

⁽¹⁾ See definition of regions on page 19.



FIRST QUARTER 2014		10



	NEW SUPPLY AND ENROLLMENT - EdR MARKETS

New supply slowed 9% from 2014 to 2015

EdR Market and Revenue Growth

*Enrollment projection represents the 4-year enrollment CAGR through 2013 for our markets. The mid-point of previously provided fall leasing guidance was used for 2014 and 2015 revenue growth projections.



FIRST QUARTER 2014		11



	OWNED COMMUNITY PROJECTED 2015 NEW SUPPLY AND DEMAND INFORMATION




Owned Community Projected 2015 New Supply and Demand Information by Region

Region ⁽⁴⁾	Owned Beds ⁽³⁾	Percentage of Owned Beds	EdR NOI % ⁽¹⁾	Enrollment Growth 3 Year CAGR - Universities Served	2015 New Supply %	Variance
West	2,327	8%	8%	1.8%	0.3%	1.5%
Mid Atlantic	5,811	19%	27%	0.8%	2.4%	(1.6)%
North	3,707	12%	12%	0.4%	1.8%	(1.4)%
South Central	7,076	24%	26%	2.2%	1.8%	0.4%
Southeast	8,363	28%	20%	1.1%	2.0%	(0.9)%
Midwest	2,636	9%	7%	2.2%	4.3%	(2.1)%
Total	29,920	100%	100%	1.4%	1.8%	(0.4)%


Region ⁽⁴⁾	Anticipated 2015 Enrollment Growth⁽²⁾	2015 Supply Growth	Variance
West	2,749	637	(2,112)
Mid Atlantic	1,269	4,143	2,874
North	2,031	4,087	2,056
South Central	2,524	2,809	285
Southeast	4,079	6,797	2,718
Midwest	2,053	4,064	2,011
Total	14,705	22,537	7,832


NOTE: Schedule represents all markets served by EdR communities and includes all announced 2014 developments. Data was obtained from the National Center for Education Statistics, Axiometrics and local market data.

⁽¹⁾ Includes 2014 development deliveries. NOI is based on current 2014 forecasted net operating income with annualization for 2014 developments.
⁽²⁾ Extrapolated from 2013 enrollment statistics from Nation Center of Education Statistics using the previous 3-year enrollment growth percentage.
⁽³⁾ Total Owned Beds reported herein include Total Communities design beds on page 9 of 26,938 plus 601 beds at Central Hall I & II at the University of Kentucky and 2,381 beds under development for Fall 2014 delivery at the University of Kentucky (see page 14).
⁽⁴⁾See definition of regions on page 19.



FIRST QUARTER 2014		12



	OWNED COMMUNITY PROJECTED 2015 NEW SUPPLY AND DEMAND INFORMATION





Projected 2015 New Supply Sorted by Percentage Increase

New Supply Growth	University Markets		EdR Bed Count		Pro Forma EdR NOI %⁽¹⁾
0%	11	27%	7,528	25%	28%
0.1% to 1.0%	6	15%	3,280	11%	11%
1.0% - 3.0%	9	22%	8,275	28%	21%
3.0% - 5.0%	11	27%	8,185	27%	32%
> 5.0%	4	9%	2,652	9%	8%
Total	41	100%	29,920	100%	100%


University Markets with > 5% Increase in 2015 New Supply

University	New Supply Increase	Pro Forma EdR NOI %
Saint Louis University	7.3%	1.3%
University of Oklahoma	6.8%	1.4%
University of Mississippi	6.5%	4.1%
University of South Carolina	6.9%	1.2%
		8.0%

NOTE: Schedule represents all markets served by EdR communities and includes all announced 2014 developments. Data was obtained from the National Center for Education Statistics, Axiometrics and local market data.
⁽¹⁾ Includes 2014 development deliveries. NOI is based on current 2014 forecasted net operating income with annualization for 2015 developments



FIRST QUARTER 2014		13



		OWNED DEVELOPMENT SUMMARY



(Amounts in thousands except bed counts)

Active Projects
	Project	Project Type	Bed Count	Estimated Start Date	Anticipated Completion Date	Total Project Development Cost	EdR's Ownership Percentage		EdR's Share of Development Cost	EdR's Share of Development Cost to be Funded
	University of Colorado - The Lotus	Wholly Owned	195	In progress	Summer 2014	20,830	100	%	20,830	3,676
	University of Kentucky - Haggin Hall	ONE Plan ⁽¹⁾	396	In progress	Summer 2014	23,802	100	%	23,802	11,088
	University of Kentucky - Champions Court I	ONE Plan ⁽¹⁾	740	In progress	Summer 2014	45,924	100	%	45,924	12,318
	University of Kentucky - Champions Court II	ONE Plan ⁽¹⁾	427	In progress	Summer 2014	23,808	100	%	23,808	6,317
	University of Kentucky - Woodland Glen I & II	ONE Plan⁽¹⁾	818	In progress	Summer 2014	44,491	100	%	44,491	13,738
	University of Minnesota - The Marshall	Joint Venture	994	In progress	Summer 2014	94,044	50	%	47,022	472	⁽²⁾
	Duke University - 605 West	Joint Venture	384	In progress	Summer 2014	46,133	90	%	41,520	17,347
	University of Connecticut - The Oaks on the Square Ph III	Wholly Owned	116	In progress	Summer 2014	12,819	100	%	12,819	5,864
	Total - 2014 Deliveries		4,070			311,851			260,216	70,820

	University of Kentucky - Woodland Glen III, IV & V	ONE Plan⁽¹⁾	1,610	In progress	Summer 2015	101,172	100	%	101,172	84,087
	University of Georgia - Georgia Heights	Joint Venture	292	In progress	Summer 2015	55,615	50	%	27,808	4,689	⁽²⁾
	Total - 2015 Deliveries		1,902			156,787			128,980	88,776

	University of Kentucky - Limestone Park I & II	ONE Plan ⁽¹⁾	1,141	In progress	Summer 2016	83,911	100	%	83,911	83,911
	Total - 2016 Deliveries		1,141			83,911			83,911	83,911
	Total Active Projects		7,113			552,549			473,107	243,507


Pre-sale
	Project	Project Type	Bed Count	Estimated Start Date	Anticipated Completion Date	Purchase Price
	Florida International University - 109 Tower	Presale	542	In progress	Summer 2014	43,500

(1) The On-Campus Equity Plan, or The ONE Plan ^SM, 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 Plan ^SM offers one service provider and one equity source to universities seeking to modernize on-campus housing to

meet the needs of today's students.

(2) Amount represents EdR's remaining required equity contribution as these projects are not majority owned.



FIRST QUARTER 2014		14



	THIRD-PARTY DEVELOPMENT SUMMARY



(Amounts in thousands except bed counts)


THIRD-PARTY PROJECTS
Project	Bed Count	Estimated Start Date	Anticipated Completion Date	Project Development Cost	Total Project Fees	Fees Earned Prior Year ⁽¹⁾	Fees Earned Three Months Ended March 31, 2014 ⁽¹⁾	Remaining Fees to Earn
West Chester University of Pennsylvania Phase II	653	In progress	Summer 2014	56,639	1,499	934	277	288
Wichita State University	784	In progress	Summer 2014	60,034	1,902	614	490	798
Clarion University of Pennsylvania	728	Spring 2014	Fall 2015	55,104	2,092	—	—	2,092
East Stroudsburg University - Pennsylvania Ph II	488	TBD	TBD	TBD	TBD	—	—	—
Total	2,653			171,777	5,493	1,548	767	3,178

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

⁽¹⁾ Amount may not tie to third-party development services revenue on the statement of operations as this schedule only includes fees earned on projects that are in progress or recently completed.



FIRST QUARTER 2014		15



		CAPITAL STRUCTURE



Key Metrics
as of March 31, 2014					Principal Outstanding ⁽⁵⁾		Weighted Average Interest Rate ⁽⁵⁾		Average Term to Maturity ⁽⁵⁾ (in years)
(dollars in thousands)
Total Debt to Gross Assets
Debt ⁽¹⁾	$	795,037		Fixed Rate - Mortgage Debt ⁽¹⁾	$	226,026	5.6	%	3.0
Gross Assets ⁽²⁾	1,832,750			Variable Rate - Mortgage Debt	34,000		2.3	%	2.3
Debt to Gross Assets	43.4		%	Variable Rate - Construction Debt	127,611		2.3	%	1.3
				Variable Rate - 5 Yr. Unsecured Term Loan	65,000		3.0	%	4.8
Net Debt to Enterprise Value				Variable Rate - 7 Yr. Unsecured Term Loan	122,500		4.0	%	6.8
Net Debt ⁽¹⁾	$	786,068		Variable Rate - Unsecured Revolving Credit Facility	219,900		1.6	%	3.8
Market Equity ⁽³⁾	1,145,429			Debt ⁽¹⁾ / Weighted Average	$	795,037	3.4	%	3.7
Enterprise Value	$	1,931,497		Less Cash	8,969
				Net Debt	$	786,068
Net Debt to Enterprise Value	40.7		%
				Interest Coverage (TTM)	4.5		x

Debt Maturity Schedule (in millions) ⁽⁵⁾				Net Debt to EBITDA - Adjusted (TTM) ⁽⁴⁾	6.2		x



Weighted Average Interest Rate of Debt Maturing Each Year ⁽⁵⁾
	2014	2015	2016	2017	2018	2019	2020	2021
Fixed Rate Mortgage Loans	4.9%	5.0%	5.5%	5.5%	—%	6.0%	5.7%	—%

Total Debt	4.9%	2.5%	4.7%	5.1%	1.6%	4.4%	5.7%	4.0%


⁽¹⁾ Excludes unamortized debt premium of $2.1 million as of March 31, 2014.
⁽²⁾ Excludes accumulated depreciation of $202.8 million as of March 31, 2014.
⁽³⁾ Market equity includes 115,013,964 shares of the Company's common stock and 1,037,600 Operating Partnership units and is calculated using $9.87 per share, the closing price of the Company's common stock on March 31, 2014.
⁽⁴⁾ Net Debt to EBITDA - Adjusted is calculated to normalize the impact of non-producing construction debt. In the calculation, Net Debt is total debt less cash and excludes non-producing debt related to assets under development at time of calculation. EBITDA is Proforma Adjusted EBITDA, which includes proforma adjustments to reflect all acquisitions and development assets that are opened as if such had occurred at the beginning of the 12 month period being presented.
⁽⁵⁾ On April 1, 2014, the Trust repaid $32.3 million of variable rate construction debt with draws on the Unsecured Revolving Credit Facility. The maturities, weighted average interest rate, and average term to maturity are pro forma to reflect this transaction.



FIRST QUARTER 2014		16



	COMMUNITY LISTING - OWNED

Name

Primary University Served

Acquisition / Development Date

# of Beds

Name

Primary University Served

Acquisition / Development Date

# of Beds

Players Club

Florida State University

Jan ’05

336

Irish Row

University of Notre Dame

Nov '11

326

The Commons

Florida State University

Jan ’05

732

GrandMarc at Westberry Place (ONE Plan)

Texas Christian University

Dec '11

562

University Towers

North Carolina State University

Jan ’05

889

The Reserve on Stinson

University of Oklahoma

Jan '12

612

The Reserve on Perkins

Oklahoma State University

Jan ’05

732

Campus West (ONE Plan)⁽¹⁾

Syracuse University

Aug '12

313

The Pointe

Pennsylvania State University

Jan ’05

984

East Edge ⁽¹⁾

University of Alabama

Aug '12

774

Commons on Kinnear

The Ohio State University

Jan ’05

502

The Province ⁽¹⁾

East Carolina University

Sept '12

728

The Lofts

University of Central Florida

Jan ’05

730

The District on 5th ⁽¹⁾

University of Arizona

Oct '12

764

The Reserve at Athens

University of Georgia

Jan ’05

612

Campus Village⁽¹⁾

Michigan State University

Oct '12

355

The Reserve at Columbia

University of Missouri

Jan ’05

676

The Province⁽¹⁾

Kent State University

Nov '12

596

The Pointe at South Florida

University of South Florida

Jan ’05

1,002

The Suites at Overton Park⁽¹⁾

Texas Tech University

Dec '12

465

Commons at Knoxville

University of Tennessee

Jan ’05

708

The Centre at Overton Park ⁽¹⁾

Texas Tech University

Dec '12

400

Campus Creek

University of Mississippi

Feb ’05

636

Pointe West

University of South Carolina

Mar ’05

480

Total Same-Communities

21,223

Campus Lodge

University of Florida

Jun ’05

1,115

The Reserve on South College

Auburn University

Jul ’05

576

The Lotus

University of Colorado, Boulder

Nov '11

Cape Trails

Southeast Missouri State University

Jan ’06

360

The Oaks on the Square⁽¹⁾

University of Connecticut

Aug '12, Aug ' 13

503

Carrollton Crossing

University of West Georgia

Jan ’06

336

3949 ⁽¹⁾

Saint Louis University

Aug '13

256

River Pointe

University of West Georgia

Jan ’06

504

Central Hall I & II (ONE Plan) ⁽¹⁾

University of Kentucky

Aug '13

601

The Avenue at Southern

Georgia Southern University

Jun ’06

624

2400 Nueces (ONE Plan) ⁽¹⁾

University of Texas at Austin

Aug '13

655

The Reserve at Saluki Pointe

Southern Illinois University

Aug '08, Aug '09

768

Roosevelt Point ⁽¹⁾

Arizona State University - Downtown Phoenix

Aug '13

609

University Village on Colvin (ONE Plan)

Syracuse University

Aug '09

432

The Retreat at Oxford ⁽¹⁾

University of Mississippi

Aug '13

668

GrandMarc at The Corner

University of Virginia

Oct '10

641

The Retreat at State College

Pennsylvania State University

Sept '13

587

Wertland Square

University of Virginia

Mar ’11

152

The Cottages on Lindberg

Purdue University

Sept '13

745

Jefferson Commons

University of Virginia

Mar ’11

The Varsity

University of Michigan

Dec '13

415

The Berk

University of California, Berkeley

May ’11

165

Total New-Communities

5,079

University Village Towers

University of California, Riverside

Sept '11

554

Total Owned-Communities

26,302

⁽¹⁾ The same-community designation for leasing purposes is different than for financial statement purposes. This community is considered same-community for purposes of leasing, as the Company has managed the leasing process for the 2013/2014 lease cycle and is managing the leasing process for the 2014/2015 lease cycle.



FIRST QUARTER 2014		17



		INVESTOR RELATIONS



Executive Management
	Randy Churchey	Chief Executive Officer
	Randy Brown	Chief Financial Officer
	Tom Trubiana	Chief Investment Officer
	Christine Richards	Chief Operating Officer

Corporate Headquarters		Investor Relations
	EdR	ICR, LLC
	999 South Shady Grove Road, Suite 600	Brad Cohen
	Memphis, TN 38120	(203) 682-8211
	(901) 259-2500

Covering Analysts
	Firm	Analyst	Contact #	Email
	Bank of America - Merrill	Jana Galan	(646) 855-3081	jana.galan@baml.com
	Green Street Advisors	Dave Bragg	(949) 706-8142	dbragg@greenstreetadvisors.com
	Hilliard Lyons	Carol Kemple	(502) 588-1839	ckemple@hilliard.com
	J.P. Morgan Securities Inc.	Anthony Paolone	(212) 622-6682	anthony.paolone@jpmorgan.com
	KeyBanc Capital Markets	Karin A. Ford	(917) 368-2293	kford@keybanccm.com
	MLV & Co., LLC	Ryan Meliker	(212) 542-5872	rmeliker@mlvco.com
	Robert W. Baird & Co., Inc.	Paula Poskon	(703) 821-5782	pposkon@rwbaird.com
	Sandler O'Neill + Partners, L.P.	Alex Goldfarb	(212) 466-7937	agoldfarb@sandleroneill.com
	Stifel Nicolaus & Company Inc.	Rod Petrik	(443) 224-1306	rpetrik@stifel.com
	UBS Securities	Ross Nussbaum	(212) 713-2484	ross.nussbaum@ubs.com
	Wunderlich Securities	Craig Kucera	(540) 277-3366	ckucera@wundernet.com



FIRST QUARTER 2014		18



		DEFINITIONS



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

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

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

	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: Oklahoma, Missouri, Kansas, Minnesota; North: Michigan, Ohio, Indiana, Illinois; South Central: Texas, Tennessee, Mississippi, Kentucky; Southeast: Florida, South Carolina, Alabama, Georgia; West: Arizona, California, Colorado

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

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



FIRST QUARTER 2014		19



		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.



FIRST QUARTER 2014		20

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