EDUCATION REALTY OPERATING PARTNERSHIP L P - FORM 8-K - EX-99.2 - EXHIBIT 99.2 SECOND QUARTER 2015 SUPPLEMENTAL - July 30, 2015

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FINANCIAL HIGHLIGHTS

 (Amounts in thousands, except per share data, unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 OPERATING DATA:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended June 30,
 
Six months ended June 30,
 
 
2015
 
2014
 
$ Chg
 
% Chg
 
2015
 
2014
 
$ Chg
 
% Chg
 
Same-community revenue
$
44,640

 
$
42,094

 
$
2,546

 
6.0
 %
 
$
92,717

 
$
87,093

 
$
5,624

 
6.5
 %
 
Total community revenue
53,734

 
46,309

 
7,425

 
16.0
 %
 
114,117

 
97,020

 
17,097

 
17.6
 %
 
Total revenue
57,324

 
50,040

 
7,284

 
14.6
 %
 
121,453

 
104,585

 
16,868

 
16.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-community net operating income
26,046

 
24,137

 
1,909

 
7.9
 %
 
54,136

 
50,694

 
3,442

 
6.8
 %
 
Total community net operating income
30,866

 
25,334

 
5,532

 
21.8
 %
 
67,109

 
53,877

 
13,232

 
24.6
 %
 
Total operating income (loss)
8,943

 
(3,651
)
 
12,594

 
344.9
 %
 
22,781

 
4,661

 
18,120

 
388.8
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to EdR
2,917

 
(8,808
)
 
11,725

 
133.1
 %
 
9,858

 
3,258

 
6,600

 
202.6
 %
 
Per share - basic and diluted
$
0.06

 
$
(0.23
)
 
$
0.29

 
126.1
 %
 
$
0.20

 
$
0.08

 
$
0.12

 
150.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funds from operations (FFO)
18,767

 
15,284

 
3,483

 
22.8
 %
 
$
41,863

 
$
32,334

 
$
9,529

 
29.5
 %
 
Per weighted average share/unit (1)
$
0.38

 
$
0.39

 
$
(0.01
)
 
(2.6
)%
 
$
0.86

 
$
0.83

 
$
0.03

 
3.6
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Core funds from operations (Core FFO)
20,057

 
17,258

 
2,799

 
16.2
 %
 
$
44,354

 
$
36,621


$
7,733

 
21.1
 %
 
Per weighted average share/unit (1)
$
0.41

 
$
0.44

 
$
(0.03
)
 
(6.8
)%
 
$
0.91

 
$
0.94

 
$
(0.03
)
 
(3.2
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL RATIOS:
 
 
 
 
 
 
 
 
 
 
6/30/2015
 
12/31/2014
 
 
 
 
 
 
 
 
 
Debt to gross assets
37.5%
 
35.1%
 
 
 
 
 
 
 
 
 
Net debt to enterprise value
33.9%
 
28.1%
 
 
 
 
 
 
 
 
 
Interest coverage ratio (TTM)
5.3x
 
5.0x
 
 
 
 
 
 
 
 
 
Net debt to EBITDA - Adjusted (TTM)
4.8x
 
4.9x
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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.

SECOND QUARTER 2015
1
BALANCE SHEET

(Amount in thousands, except share and per share data)
 
June 30, 2015
 
December 31, 2014
 
 Assets
 
 (unaudited)
 
 
 
 
Collegiate housing properties, net (1)
 
$
1,572,254

 
$
1,586,009

 
 
Assets under development
 
214,125

 
120,702

 
 
Cash and cash equivalents
 
17,082

 
18,385

 
 
Restricted cash
 
13,088

 
10,342

 
 
Other assets
 
72,695

 
76,199

 
 Total assets
 
$
1,889,244

 
$
1,811,637

 
 
 
 
 
 
 
 Liabilities and equity
 
 
 
 
 
 Liabilities:
 
 
 
 
 
 
Mortgage and construction loans, net of unamortized premium
 
$
224,689

 
$
249,637

 
 
Unsecured revolving credit facility
 
138,000

 
24,000

 
 
Unsecured term loans
 
187,500

 
187,500

 
 
Senior unsecured notes
 
250,000

 
250,000

 
 
Accounts payable and accrued expenses
 
83,317

 
76,869

 
 
Deferred revenue
 
11,495

 
17,301

 
 Total liabilities
 
895,001

 
805,307

 
 
 
 
 
 
 
 
 Commitments and contingencies
 
—

 
—

 
 Redeemable noncontrolling interests
 
12,261

 
14,512

 
 
 
 
 
 
 
 
 Equity:
 
 
 
 
 
 EdR stockholders' equity:
 
 
 
 
 
 
Common stock, $0.01 par value per share, 200,000,000 shares authorized, 48,350,313 and 47,999,427 shares issued and outstanding as of June 30, 2015 and December 31, 2014, respectively
 
483

 
480

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

 
—

 
 
Additional paid-in capital
 
1,013,878

 
1,034,683

 
 
Accumulated deficit
 
(32,051
)
 
(41,909
)
 
 
Accumulated other comprehensive loss
 
(4,813
)
 
(4,465
)
 
 Total EdR stockholders' equity
 
977,497

 
988,789

 
 Noncontrolling interest
 
4,485

 
3,029

 
 Total equity
 
981,982

 
991,818

 
 Total liabilities and equity
 
$
1,889,244

 
$
1,811,637

 
(1) Amount is net of accumulated depreciation of $240,419 and $210,047, as of June 30, 2015 and December 31, 2014, respectively.

SECOND QUARTER 2015
2
OPERATING RESULTS

(Amounts in thousands, except per share data, unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended June 30,
 
Six months ended June 30,
 
2015
 
2014
 
$ Change
 
2015
 
2014
 
$ Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
     Collegiate housing leasing revenue
$
53,734

 
$
46,309

 
$
7,425

 
$
114,117

 
$
97,020

 
$
17,097

     Third-party development consulting services
444

 
757

 
(313
)
 
1,041

 
1,559

 
(518
)
     Third-party management services
780

 
786

 
(6
)
 
1,833

 
1,804

 
29

     Operating expense reimbursements
2,366

 
2,188

 
178

 
4,462

 
4,202

 
260

     Total revenues
57,324

 
50,040

 
7,284

 
121,453

 
104,585

 
16,868

Operating expenses:
 
 
 
 
 
 
 
 
 
 


     Collegiate housing leasing operations
22,868

 
20,975

 
1,893

 
47,008

 
43,143

 
3,865

     Development and management services
2,507

 
2,282

 
225

 
5,209

 
4,623

 
586

     General and administrative
1,769

 
1,677

 
92

 
4,239

 
3,794

 
445

     Development pursuit, acquisition costs and severance
790

 
307

 
483

 
959

 
308

 
651

     Depreciation and amortization
15,911

 
14,458

 
1,453

 
31,777

 
28,241

 
3,536

     Ground lease expense
2,170

 
1,934

 
236

 
5,018

 
3,833

 
1,185

     Loss on impairment of collegiate housing properties
—

 
9,870

 
(9,870
)
 
—

 
11,780

 
(11,780
)
     Reimbursable operating expenses
2,366

 
2,188

 
178

 
4,462

 
4,202

 
260

     Total operating expenses
48,381

 
53,691

 
(5,310
)
 
98,672

 
99,924

 
(1,252
)
Operating income (loss)
8,943

 
(3,651
)
 
12,594

 
22,781

 
4,661

 
18,120

Nonoperating (income) expenses:
 
 
 
 
 
 
 
 
 
 


     Interest expense
5,451

 
4,967

 
484

 
11,392

 
10,568

 
824

     Amortization of deferred financing costs
491

 
514

 
(23
)
 
1,007

 
1,017

 
(10
)
     Interest income
(67
)
 
(41
)
 
(26
)
 
(105
)
 
(111
)
 
6

     Loss on extinguishment of debt
—

 
—

 
—

 
—

 
649

 
(649
)
Total nonoperating expenses
5,875

 
5,440

 
435

 
12,294

 
12,123

 
171

Income (loss) before equity in losses of unconsolidated entities, income taxes and gain on sale of collegiate housing properties
3,068

 
(9,091
)
 
12,159

 
10,487

 
(7,462
)
 
17,949

Equity in losses of unconsolidated entities
(202
)
 
(112
)
 
(90
)
 
(396
)
 
(134
)
 
(262
)
Income (loss) before income taxes and gain on sale of collegiate housing properties
2,866

 
(9,203
)
 
12,069

 
10,091

 
(7,596
)
 
17,687

Income tax expense (benefit)
90

 
(357
)
 
447

 
168

 
(312
)
 
480

Income (loss) before gain on sale of collegiate housing properties
2,776

 
(8,846
)
 
11,622

 
9,923

 
(7,284
)
 
17,207

Gain on sale of collegiate housing properties
—

 
—

 
—

 
—

 
10,902

 
(10,902
)
Net income (loss)
2,776

 
(8,846
)
 
11,622

 
9,923

 
3,618

 
6,305

 
 
 
 
 
 
 
 
 
 
 
 

SECOND QUARTER 2015
3
OPERATING RESULTS

(Amounts in thousands, except per share data, unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended June 30,
 
Six months ended June 30,
 
2015
 
2014
 
$ Change
 
2015
 
2014
 
$ Change
 
 
 
 
 
 
 
 
 
 
 
 
Less: Net income (loss) attributable to the noncontrolling interests
(141
)
 
(38
)
 
(103
)
 
65

 
360

 
(295
)
Net income (loss) attributable to Education Realty Trust, Inc.
$
2,917

 
$
(8,808
)
 
$
11,725

 
$
9,858

 
$
3,258

 
$
6,600

 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
      Gain (loss) on cash flow hedging derivatives
2,091

 
(2,394
)
 
4,485

 
(348
)
 
(3,757
)
 
3,409

Comprehensive income (loss)
$
5,008

 
$
(11,202
)
 
$
16,210

 
$
9,510

 
$
(499
)
 
$
10,009

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings per share information:
 
 
 
 
 
 
 
 
 
 


Net income (loss) attributable to Education Realty Trust, Inc. common stockholders per share – basic and diluted
$
0.06

 
$
(0.23
)
 
$
0.29

 
$
0.20

 
$
0.08

 
$
0.12

 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares of common stock outstanding – basic
48,514

 
38,886

 
9,628

 
48,345

 
38,611

 
9,734

Weighted average shares of common stock outstanding – diluted (1)
48,832

 
38,886

 
9,946

 
48,665

 
38,957

 
9,708

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Weighted average shares of common stock outstanding - diluted assumes the conversion of outstanding redeemable Operating Partnership Units and University Towers Operating Partnership Units.

SECOND QUARTER 2015
4
FUNDS FROM OPERATIONS

(Amounts in thousands, except per share data, unaudited)
Three months ended June 30,
 
Six months ended June 30,
 
 
2015
 
2014
 
$ Change
 
2015
 
2014
 
$ Change
Net income (loss) attributable to EdR
$
2,917

 
$
(8,808
)
 
$
11,725

 
$
9,858

 
$
3,258

 
$
6,600

 
Gain on sale of collegiate housing assets
—

 
—

 
—

 
—

 
(10,902
)
 
10,902

 
Impairment losses
—

 
9,870

 
(9,870
)
 
—

 
11,780

 
(11,780
)
 
Real estate related depreciation and amortization
15,517

 
14,299

 
1,218

 
31,040

 
27,921

 
3,119

 
Equity portion of real estate depreciation and amortization on equity investees
423

 
50

 
373

 
843

 
99

 
744

 
Noncontrolling interests
(90
)
 
(127
)
 
37

 
122

 
178

 
(56
)
Funds from operations ("FFO") available to stockholders and unitholders
18,767

 
15,284

 
3,483

 
41,863

 
32,334

 
9,529

 
percent change
 
 
 
 
22.8
 %
 
 
 
 
 
29.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
FFO adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
Loss on extinguishment of debt
—

 
—

 
—

 
—

 
649

 
(649
)
 
Acquisition costs
90

 
22

 
68

 
90

 
23

 
67

 
Severance costs, net of tax
—

 
285

 
(285
)
 
—

 
285

 
(285
)
 
Straight-line adjustment for ground leases (1)
1,200

 
1,212

 
(12
)
 
2,401

 
2,425

 
(24
)
FFO adjustments
1,290

 
1,519

 
(229
)
 
2,491

 
3,382

 
(891
)
 
 
 
 
 
 
 
 
 
 
 
 
 
FFO on Participating Developments:(2)
 
 
 
 
 
 
 
 
 
 
 
 
Interest on loan to Participating Development
—

 
455

 
(455
)
 
—

 
905

 
(905
)
FFO on Participating Developments
—

 
455

 
(455
)
 
—

 
905

 
(905
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Core funds from operations ("Core FFO") available to stockholders and unitholders
$
20,057

 
$
17,258

 
$
2,799

 
$
44,354

 
$
36,621

 
$
7,733

 
percent change
 
 
 
 
16.2
 %
 
 
 
 
 
21.1
 %
 
 
 
 
 
 


 
 
 
 
 
 
FFO per weighted average share/unit (3)
$
0.38

 
$
0.39

 
$
(0.01
)
 
$
0.86

 
$
0.83

 
$
0.03

 
percent change
 
 
 
 
(2.6
)%
 
 
 
 
 
3.6
 %
Core FFO per weighted average share/unit (3)
$
0.41

 
$
0.44

 
$
(0.03
)
 
$
0.91

 
$
0.94

 
$
(0.03
)
 
percent change
 
 
 
 
(6.8
)%
 
 
 
 
 
(3.2
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares/units (3)
48,832

 
39,232

 
9,600

 
48,665

 
38,957

 
9,708

 
percent change
 
 
 
 
24.5
 %
 
 
 
 
 
24.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)  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.
(2)  FFO on participating developments in 2014 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. In July 2014, our mezzanine investment was repaid in full, ending the Company's participation in the project and any fees and interest. At the same time all previously deferred amounts were recognized in net income.
(3)  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.

SECOND QUARTER 2015
5
COMMUNITY OPERATING RESULTS

(Amounts in thousands, unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2015
 
2014
 
$ Change
 
% Change
 
2015
 
2014
 
$ Change
 
% Change
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-communities(1)
$
44,640

 
$
42,094

 
$
2,546

 
6.0
%
 
$
92,717

 
$
87,093

 
$
5,624

 
6.5
%
 
New-communities (2)
8,727

 
89

 
8,638

 
NM

 
20,666

 
187

 
20,479

 
NM

 
Sold-communities(3)
—

 
4,126

 
(4,126
)
 
NM

 
—

 
9,740

 
(9,740
)
 
NM

 
CA revenue(4)
367

 
—

 
367

 
NM

 
734

 
—

 
734

 
NM

Total revenues
53,734

 
46,309

 
7,425

 
16.0
%
 
114,117

 
97,020

 
17,097

 
17.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses (5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-communities(1)
18,594

 
17,957

 
637

 
3.5
%
 
38,581

 
36,399

 
2,182

 
6.0
%
 
New-communities (2)
3,907

 
629

 
3,278

 
NM

 
7,693

 
1,174

 
6,519

 
NM

 
Sold-communities(3)
—

 
2,389

 
(2,389
)
 
NM

 
—

 
5,570

 
(5,570
)
 
NM

 
CA expense(4)
367

 
—

 
367

 
NM

 
734

 
—

 
734

 
NM

Total operating expenses
22,868

 
20,975

 
1,893

 
9.0
%
 
47,008

 
43,143

 
3,865

 
9.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net operating income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-communities(1)
26,046

 
24,137

 
1,909

 
7.9
%
 
54,136

 
50,694

 
3,442

 
6.8
%
 
New-communities (2)
4,820

 
(540
)
 
5,360

 
NM

 
12,973

 
(987
)
 
13,960

 
NM

 
Sold-communities(3)
—

 
1,737

 
(1,737
)
 
NM

 
—

 
4,170

 
(4,170
)
 
NM

Total net operating income
$
30,866

 
$
25,334

 
$
5,532

 
21.8
%
 
$
67,109

 
$
53,877

 
$
13,232

 
24.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Same-communities are defined as those communities that have been open and operating for the whole time in the current and prior periods. See page 23 of this supplement for a listing of same-communities.
(2) See page 23 of this supplement for a listing of which communities are categorized as new-communities.
(3) Represents operating results from communities sold in 2014. No communities have been sold in 2015.
(4) Represents additional same-community revenue and expenses incurred as a result of the Company changing its community assistant program at the end of 2014. The amounts are shown separately as there is no NOI impact and to clearly show the operating growth in revenue and expenses year over year.
(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.



SECOND QUARTER 2015
6
SAME-COMMUNITY EXPENSES BY CATEGORY

(Amounts in thousands, except bed and per-bed data, unaudited)
 
Three months ended June 30, 2015
 
Three months ended June 30, 2014
 
 
 
 
 
Amount
 
Per Bed
 
% of Total Operating Expenses
 
Amount
 
Per Bed
 
% of Total Operating Expenses
 
$ Change
 
% Change
Utilities(1)
$
5,471

 
$
237

 
29
%
 
$
5,073

 
$
220

 
28
%
 
$
398

 
7.8
 %
On-Site Payroll
3,461

 
150

 
19
%
 
3,241

 
140

 
18
%
 
220

 
6.8
 %
General & Administrative(2)
2,751

 
119

 
15
%
 
3,080

 
133

 
17
%
 
(329
)
 
(10.7
)%
Maintenance & Repairs(3)
1,554

 
67

 
8
%
 
1,284

 
56

 
7
%
 
270

 
21.0
 %
Marketing
765

 
33

 
4
%
 
786

 
34

 
5
%
 
(21
)
 
(2.7
)%
Total Direct Operating Expenses
$
14,002

 
$
606

 
75
%
 
$
13,464

 
$
583

 
75
%
 
$
538

 
4.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Taxes
4,016

 
174

 
22
%
 
3,928

 
170

 
22
%
 
88

 
2.2
 %
Insurance
576

 
25

 
3
%
 
565

 
24

 
3
%
 
11

 
1.9
 %
Total Fixed Operating Expenses
$
4,592

 
$
199

 
25
%
 
$
4,493

 
$
194

 
25
%
 
$
99

 
2.2
 %
Total Property Operating Expenses
$
18,594

 
$
805

 
100
%
 
$
17,957

 
$
777

 
100
%
 
$
637

 
3.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2015
 
Six months ended June 30, 2014
 
 
 
 
 
Amount
 
Per Bed
 
% of Total Operating Expenses
 
Amount
 
Per Bed
 
% of Total Operating Expenses
 
$ Change
 
% Change
Utilities(1)
$
11,097

 
$
481

 
29
%
 
$
10,505

 
$
455

 
29
%
 
$
592

 
5.6
 %
On-Site Payroll
6,952

 
301

 
18
%
 
6,513

 
282

 
18
%
 
439

 
6.7
 %
General & Administrative(2)
5,893

 
255

 
15
%
 
6,124

 
265

 
17
%
 
(231
)
 
(3.8
)%
Maintenance & Repairs(3)
2,673

 
116

 
7
%
 
2,366

 
103

 
7
%
 
307

 
13.0
 %
Marketing
1,763

 
76

 
5
%
 
1,783

 
77

 
4
%
 
(20
)
 
(1.1
)%
Total Direct Operating Expenses
$
28,378

 
$
1,229

 
74
%
 
$
27,291

 
$
1,182

 
75
%
 
$
1,087

 
4.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Taxes
9,049

 
392

 
23
%
 
7,976

 
$
346

 
22
%
 
$
1,073

(4) 
13.5
 %
Insurance
1,154

 
50

 
3
%
 
1,132

 
49

 
3
%
 
22

 
1.9
 %
Total Fixed Operating Expenses
$
10,203

 
$
442

 
26
%
 
$
9,108

 
$
395

 
25
%
 
$
1,095

 
12.0
 %
Total Property Operating Expenses
$
38,581

 
$
1,671

 
100
%
 
$
36,399

 
$
1,577

 
100
%
 
$
2,182

(4) 
6.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-community beds
23,079

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTE: Schedule does not include $0.4 million and $0.7 million of expenses for the three months ended June 30, 2015 and the six months ended June 30, 2015, respectively, related to the Company's change in its community assistant program at the end of the prior year. See note 4 on page 6.
 
 
(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.
(4) During the first quarter of 2015 the Company accrued an additional $0.8 million in real estate taxes relating to the settlement of an assessment dispute with a local school board at one community covering several prior assessment years. Without this charge, real estate taxes would have only increased 3.3% and total operating expenses would have only increased 3.8% over prior year.


SECOND QUARTER 2015
7
COMMUNITY OPERATIONS - TRAILING FIVE QUARTERS


(Amounts in thousands, except beds and per bed amounts)
Three Months Ended
 
Total / Weighted Average - Trailing Twelve Months
 
 
 
June 30, 2014
 
September 30, 2014
 
December 31, 2014
 
March 31, 2015
 
June 30, 2015
 
2015 Same Communities
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
42,094

 
$
40,064

 
$
48,669

 
$
48,077

 
$
44,640

 
$
181,450

 
Operating Expenses
 
17,957

 
22,453

 
18,714

 
19,987

 
18,594

 
79,748

 
Net Operating Income
 
$
24,137

 
$
17,611

 
$
29,955

 
$
28,090

 
$
26,046

 
$
101,702

 
Margin
 
57
 %
 
44
%
 
62
%
 
58
%
 
58
%
 
56
%
 
Beds
 
69,237

 
69,237

 
69,237

 
69,237

 
69,237

 
276,948

 
Occupancy(1)
 
87.3
 %
 
89.2
%
 
96.4
%
 
96.0
%
 
88.6
%
 
92.6
%
 
Net Apartment Rent per Occupied Bed
 
$
645

 
$
583

 
$
689

 
$
678

 
$
673

 
$
657

 
Other Income per Occupied Bed
 
52

 
66

 
40

 
45

 
54

 
51

 
Total Revenue per Occupied Bed
 
$
697

 
$
649

 
$
729

 
$
723

 
$
727

 
$
708

 
Operating Expense per Available Bed
 
$
259

 
$
324

 
$
270

 
$
289

 
$
269

 
$
288

 
 
 
 
 
 
 
 
 
 
 
 
 
 
2015 New Communities
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
89

 
$
4,928

 
$
11,823

 
$
11,939

 
$
8,727

 
$
37,417

 
Operating Expenses
 
629

 
2,180

 
3,012

 
3,786

 
3,907

 
12,885

 
Net Operating Income
 
$
(540
)
 
$
2,748

 
$
8,811

 
$
8,153

 
$
4,820

 
$
24,532

 
Margin
 
(607
)%
 
56
%
 
75
%
 
68
%
 
55
%
 
66
%
 
Beds
 
120

 
8,256

 
13,674

 
13,674

 
13,824

 
49,428

 
Occupancy(1)
 
95.0
 %
 
95.0
%
 
95.6
%
 
95.0
%
 
63.7
%
 
86.4
%
 
Net Apartment Rent per Occupied Bed
 
$
737

 
$
597

 
$
883

 
$
882

 
$
945

 
$
843

 
Other Income per Occupied Bed
 
40

 
31

 
22

 
37

 
47

 
33

 
Total Revenue per Occupied Bed
 
$
777

 
$
628

 
$
905

 
$
919

 
$
992

 
$
876

 
Operating Expense per Available Bed
 
$
5,243

 
$
264

 
$
220

 
$
277

 
$
283

 
$
261

 
 
 
 
 
 
 
 
 
 
 
 
 
 
2015 Sold Communities
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
4,126

 
$
2,664

 
$
1,153

 
$
—

 
$
—

 
$
3,817

 
Operating Expenses
 
2,389

 
2,287

 
860

 
—

 
—

 
3,147

 
Net Operating Income
 
$
1,737

 
$
377

 
$
293

 
$
—

 
$
—

 
$
670

 
Margin
 
42
 %
 
14
%
 
25
%
 
—
%
 
—
%
 
18
%
 
Beds
 
9,549

 
6,383

 
1,628

 
—

 
—

 
8,011

 
Occupancy(1)
 
90.0
 %
 
88.5
%
 
89.2
%
 
—
%
 
—
%
 
88.6
%
 
Net Apartment Rent per Occupied Bed
 
$
455

 
$
426

 
$
754

 
$
—

 
$
—

 
$
493

 
Other Income per Occupied Bed
 
25

 
46

 
40

 
—

 
—

 
45

 
Total Revenue per Occupied Bed
 
$
480

 
$
472

 
$
794

 
$
—

 
$
—

 
$
538

 
Operating Expense per Available Bed
 
$
250

 
$
362

 
$
529

 
$
—

 
$
—

 
$
395

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

SECOND QUARTER 2015
8
COMMUNITY OPERATIONS - TRAILING FIVE QUARTERS


(Amounts in thousands, except beds and per bed amounts)
Three Months Ended
 
Total / Weighted Average - Trailing Twelve Months
 
 
 
June 30, 2014
 
September 30, 2014
 
December 31, 2014
 
March 31, 2015
 
June 30, 2015
 
Other(2)
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
—

 
$
—

 
$
—

 
$
367

 
$
367

 
$
734

 
Operating Expenses
 
—

 
—

 
—

 
367

 
367

 
734

 
Net Operating Income
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
Margin
 
—
 %
 
—
%
 
—
%
 
—
%
 
—
%
 
—
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2015 Total Communities
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
46,309

 
$
47,656

 
$
61,645

 
$
60,383

 
$
53,734

 
$
223,418

 
Operating Expenses
 
20,975

 
26,920

 
22,586

 
24,140

 
22,868

 
96,514

 
Net Operating Income
 
$
25,334

 
$
20,736

 
$
39,059

 
$
36,243

 
$
30,866

 
$
126,904

 
Margin
 
55
 %
 
44
%
 
63
%
 
60
%
 
57
%
 
57
%
 
Beds
 
78,906

 
83,876

 
84,539

 
82,911

 
83,061

 
334,387

 
Occupancy(1)
 
87.6
 %
 
89.8
%
 
96.1
%
 
95.8
%
 
84.5
%
 
91.6
%
 
Net Apartment Rent per Occupied Bed
 
$
621

 
$
572

 
$
721

 
$
716

 
$
712

 
$
681

 
Other Income per Occupied Bed
 
49

 
61

 
37

 
44

 
53

 
48

 
Total Revenue per Occupied Bed
 
$
670

 
$
633

 
$
758

 
$
760

 
$
765

 
$
729

 
Operating Expense per Available Bed
 
$
266

 
$
321

 
$
268

 
$
291

 
$
275

 
$
289

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Represents the weighted average physical occupancy for the period presented.
(2) Represents additional same-community revenue and expenses incurred as a result of the Company changing its community assistant program at the end of 2014. The amounts are shown separately as there is no NOI impact and to clearly show the operating growth in revenue and expenses year over year.

SECOND QUARTER 2015
9
PRELEASING SUMMARY



 
 
 
 
 
 
 
Preleasing at July 27,
 
 
 
 
 
 
Design Beds
 
% of NOI
 
2014 Opening Occupancy
 
2015
 
2014
 
Preleasing Ahead/(Behind)
 
Projected Rate Growth
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-Communities - by Tier
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Prior Year Occupancy Below 90% (Tier 1)
2,906

 
5.6
%
 
81.6
%
 
74.6
%
 
69.3
%
 
5.3
 %
 
2.6
%
 
     Prior Year Occupancy 90% to 94.9% (Tier 2)
2,063

 
7.8
%
 
92.2
%
 
92.2
%
 
88.0
%
 
4.2
 %
 
2.1
%
 
     Prior Year Occupancy 95% to 97.9% (Tier 3)
5,772

 
16.7
%
 
97.4
%
 
96.6
%
 
93.8
%
 
2.8
 %
 
3.6
%
 
          Subtotal - Tiers 1 - 3
10,741

 
30.1
%
 
92.1
%
 
89.8
%
 
86.0
%
 
3.8
 %
 

 
Prior Year Occupancy 98% and Above (Tier 4)
15,996

 
69.9
%
 
99.7
%
 
97.9
%
 
98.6
%
 
(0.7
)%
 
3.5
%
 
Total Same-Communities (1)
26,737

 
100.0
%
 
96.6
%
 
94.6
%
 
93.5
%
 
1.1
 %
 
3.2
%
 
Total New-Communities (2)
3,557

 
 
 
 
 
94.4
%
 
 
 
 
 
 
 
Total Communities
30,294

 
 
 
 
 
94.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Projected Fall Revenue:
 
 
 
The same-community portfolio is projected to obtain a 3.0% to 3.5% increase in revenue for the upcoming lease term, with net rates up 3.2% and occupancies consistent with the prior year.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTE: Leasing update includes 2,982 same-community beds and 1,610 new-community beds to be delivered in 2015 at the University of Kentucky.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) The same-community designation for leasing purposes is different than for financial reporting 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 2015/2016 leasing cycle. See page 23 for a listing of communities that are included in the same community bed count for preleasing above.
 
 
(2) The new-community designation for leasing purposes is different than for financial statement purposes. A community is considered new-community for leasing when the Company has not previously managed the leasing process. Design beds for Total New-Communities above include the following: (1) our 2014 acquisition of The District on Apache (900 beds) and (2) beds at our 2015 development deliveries - The Oaks on the Square - Phase IV (391 beds), The Retreat at Louisville (656 beds) and Woodland Glen III, IV & V (1,610 beds). Our 2015 acquisition of The Commons on Bridge is excluded since we did not oversee leasing for the 2015/2016 lease year.
 

SECOND QUARTER 2015
10
SAME-COMMUNITY PRELEASING BY REGION AND DISTANCE


 
 
 
 
 
 
 
Preleasing at July 27,
 
 
 
 
 
Design Beds
 
% of NOI
 
2014 Opening Occupancy
 
2015
 
2014
 
Preleasing Ahead/(Behind)
 
Projected Rate Growth
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-Communities - by Region (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
Mid-Atlantic
5,811

 
26.2
%
 
95.0
%
 
95.1
%
 
93.2
%
 
1.9
 %
 
3.7
%
Midwest
2,636

 
6.9
%
 
93.6
%
 
85.0
%
 
85.8
%
 
(0.8
)%
 
4.1
%
North
3,206

 
10.7
%
 
99.3
%
 
95.0
%
 
96.8
%
 
(1.8
)%
 
1.9
%
South Central
7,076

 
31.1
%
 
98.8
%
 
98.2
%
 
97.8
%
 
0.4
 %
 
3.2
%
Southeast
5,681

 
15.8
%
 
96.1
%
 
94.2
%
 
92.1
%
 
2.1
 %
 
2.0
%
West
2,327

 
9.3
%
 
95.4
%
 
94.4
%
 
89.2
%
 
5.2
 %
 
4.3
%
Total Same-Communities
26,737

 
100.0
%
 
96.6
%
 
94.6
%
 
93.5
%
 
1.1
 %
 
3.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-Communities - by Distance from Campus
 
 
 
 
 
 
 
 
 
 
 
 
 
0-0.2 miles
16,292

 
70.5
%
 
97.9
%
 
97.2
%
 
95.8
%
 
1.4
 %
 
3.1
%
0.21-0.49 miles
2,144

 
6.3
%
 
97.1
%
 
92.4
%
 
91.5
%
 
0.9
 %
 
3.5
%
0.5-0.99 miles
1,004

 
3.5
%
 
99.1
%
 
87.6
%
 
100.0
%
 
(12.4
)%
 
0.9
%
1.0-1.99 miles
5,437

 
15.3
%
 
92.0
%
 
90.3
%
 
85.0
%
 
5.3
 %
 
3.9
%
2.0 & > miles
1,860

 
4.4
%
 
97.9
%
 
91.3
%
 
97.4
%
 
(6.1
)%
 
2.3
%
Total Same-Communities
26,737

 
100.0
%
 
96.6
%
 
94.6
%
 
93.5
%
 
1.1
 %
 
3.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTE: Leasing update includes 2,982 same-community beds and 1,610 new-community beds to be delivered in 2015 at the University of Kentucky.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) See definition of regions on page 25.


SECOND QUARTER 2015
11
TOP EdR MARKETS AND STATES BY REVENUE

*The data above is based on revenue for the twelve months ended June 30, 2015 and excludes properties that were sold during the period.
(1) All revenue at the University of Kentucky is from ONE PlanSM assets.

SECOND QUARTER 2015
12
TOP EdR MARKETS AND STATES BY REVENUE



*The data above is based on revenue for the twelve months ended June 30, 2015 and excludes properties that were sold during the period.


SECOND QUARTER 2015
13
NEW SUPPLY AND ENROLLMENT - EdR MARKETS


New supply growth expected to slow 47% from 2015 to 2016

EdR Market and Revenue Growth
*Enrollment projection represents the 3-year enrollment CAGR through 2014 for our markets.
NOTE: Same-Community Fall Leasing Revenue Growth for 2014 represents actual growth achieved, while 2015 represents the mid-point of our current projections (revenue growth of between 3.0% and 3.5%).

SECOND QUARTER 2015
14
NEW SUPPLY AND ENROLLMENT - EdR MARKETS

 
 
 
 
 
 
 
 
 
Owned Community Projected 2016 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
2016 New Supply %
Variance
 
West
3,544
11%
12%
1.5%
0.4%
1.1%
 
Mid Atlantic
6,824
21%
25%
1.0%
0.9%
0.1%
 
North
3,206
10%
8%
0.2%
0.9%
(0.7)%
 
South Central
10,983
33%
37%
2.2%
2.3%
(0.1)%
 
Southeast
5,681
17%
12%
0.9%
0.2%
0.7%
 
Midwest
2,636
8%
6%
1.6%
0.6%
1.0%
 
     Total
32,874
100%
100%
1.5%
0.8%
0.7%
 
 
 
 
 
 
 
 
 
 
Region (4)
Anticipated 2016 Enrollment Growth (2)
2016 Supply Growth
Variance
 
 
 
 
 
West
2,900
682
2,218
 
Anticipated 2016 Enrollment Growth Projected to Exceed 2016 Supply Growth by 29%
 
Mid Atlantic
2,081
1,947
134
 
 
North
1,124
1,536
(412)
 
 
South Central
3,288
4,173
(885)
 
 
Southeast
1,269
506
763
 
 
Midwest
1,548
594
954
 
 
     Total
12,210
9,438
2,772
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTE: Schedule represents all markets served by EdR communities and includes all announced 2015 and 2016 developments and the pending acquisition of The Province at Boulder, which is expected to close in the fall of 2015. Data was obtained from the National Center for Education Statistics, Axiometrics and local market data.
 
 
 
(1) NOI is based on current 2015 forecast net operating income with proforma adjustments for 2015 and 2016 developments and developments or acquisitions that have been operating less than 12 months.
 
(2) Extrapolated from 2014 enrollment statistics from University Common Data Sets using the previous 3-year enrollment growth percentage.
 
(3) Total Owned Beds reported herein include Total Communities design beds on page 23 of 27,787 plus (1) 2,657 beds related to the 2015 deliveries at the University of Kentucky (1,610 beds), the University of Connecticut (391 beds), and the University of Louisville (656 beds) (see page 17); (2) 317 beds at the 2015 announced acquisition of The Province at Boulder; and (3) 2,113 beds at our 2016 deliveries at the University of Kentucky (1,141 beds), The Retreat at Blacksburg (622 beds) and the second phase at the Retreat at Oxford (350 beds) (also see page 17).
 
(4) See definition of regions on page 25.
 

SECOND QUARTER 2015
15
NEW SUPPLY AND ENROLLMENT - EdR MARKETS

 
 
 
 
 
 
 
 
 
 
 
Projected 2016 New Supply Sorted by Percentage Increase
 
 
 
 
 
 
 
 
New Supply Growth
University Markets
EdR Bed Count
Pro Forma
EdR NOI %(1)
0%
18
47%
19,656
60%
56%
0.1% to 1.0%
7
18%
3,553
11%
9%
1.0% - 3.0%
8
21%
6,323
19%
21%
3.0% - 5.0%
4
11%
2,484
8%
12%
> 5.0%
1
3%
858
2%
2%
     Total
38
100%
32,874
100%
100%
 
 
 
 
 
 
 
 
 
 
 
 
University Markets with > 5% Increase in 2016 New Supply
 
 
 
 
 
 
 
 
 
University
New Supply Increase
Pro Forma EdR NOI %
 
 
 
University of Tennessee
6.3%
2.0%
 
 
 
 
 
 
 
 
 
NOTE: Schedule represents all markets served by EdR communities and includes all announced 2015 and 2016 developments and the pending acquisition of The Province at Boulder, which is expected to close in the fall of 2015. Data was obtained from the National Center for Education Statistics, Axiometrics and local market data.
(1) NOI is based on current 2015 forecast net operating income with proforma adjustments for 2015 and 2016 developments and developments or acquisitions that have been operating less than 12 months.


SECOND QUARTER 2015
16
OWNED DEVELOPMENT SUMMARY

(Amounts in thousands except bed counts)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Active Projects
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 Kentucky - Woodland Glen III, IV & V(1)
ONE Plan (2)
1,610

In progress
Summer 2015
$
101,172

 
100
%
$
101,172

 
$
1,743

 
University of Georgia - Georgia Heights
Joint Venture (3)
292

In progress
Summer 2015
55,615

 
50
%
27,808

(3) 
—

(3) 
University of Connecticut - The Oaks on the Square Ph IV
Wholly Owned
391

In progress
Summer 2015
45,000

 
100
%
45,000

 
12,536

 
University of Louisville - The Retreat at Louisville
Joint Venture
656

In Progress
Summer 2015
45,000

 
75
%
33,750

 
3,030

 
            Total - 2015 Deliveries
 
2,949

 
 
$
246,787

 
 
$
207,730

 
$
17,309

 
 
 
 
 
 
 
 
 
 
 
 
 
University of Kentucky - Limestone Park I & II(1)
ONE Plan (2)
1,141

In progress
Summer 2016
$
83,911

 
100
%
$
83,911

 
$
61,898

 
University of Mississippi - The Retreat - Phase II
Wholly Owned
350

In progress
Summer 2016
25,600

 
100
%
25,600

 
21,242

 
Virginia Tech - Retreat at Blacksburg - Phase I
Joint Venture
622

Summer 2015
Summer 2016
48,325

 
75
%
36,244

 
36,244

 
            Total - 2016 Deliveries
 
2,113

 
 
$
157,836

 
 
$
145,755

 
$
119,384

 
 
 
 
 
 
 
 
 
 
 
 
 
University of Kentucky - University Flats
ONE Plan (2)
771

In progress
Summer 2017
$
74,038

 
100
%
$
74,038

 
$
73,373

 
Virginia Tech - Retreat at Blacksburg - Phase II
Joint Venture
207

Summer 2016
Summer 2017
16,108

 
75
%
12,081

 
12,081

 
            Total - 2017 Deliveries
 
978

 
 
$
90,146

 
 
$
86,119

 
$
85,454

 
 
 
 
 
 
 
 
 
 
 
 
 
Total Active Projects
 
6,040

 
 
$
494,769

 
 
$
439,604

 
$
222,147

 
 
 
 
 
 
 
 
 
 
 
 
 
Recently Awarded - 2017 Deliveries
Project Type
Bed Count
Total Project Development Cost
 
 
 
 
 
 
 
 
Arkansas State University
ONE Plan (2)
 
 
 
 
 
 
 
 
 
 
University of Kentucky - Honors College
ONE Plan (2)
 
 
 
 
 
 
 
 
 
 
Boise State University
ONE Plan (2)
 
 
 
 
 
 
 
 
 
 
Total Recently Awarded - 2017 Deliveries
 
1,229

$
92,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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.

 
(1) This project, once complete, will consist of multiple communities.
 
(2) 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.
 
(3) This project is not majority owned. As such, it will not be consolidated and we will recognize our portion of profits through equity in earnings on the income statement. Also as a result, the costs to be funded only represent EdR’s remaining required equity contribution.
 


SECOND QUARTER 2015
17
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 Quarter Ended June 30, 2015 (1)
Remaining Fees to Earn
Clarion University of Pennsylvania
728

Spring 2014
Fall 2015
$
55,104

$
2,092

$
931

$
776

$
385

University of Cal. Berkeley - Bowles Hall
186

Summer 2015
Summer 2016
35,947

1,768

—

19

1,749

East Stroudsburg University - Pennsylvania Ph II
488

Fall 2015
Summer 2017
TBD

TBD

—

—

—

Total
1,402



$
91,051

$
3,860

$
931

$
795

$
2,134

 
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.



SECOND QUARTER 2015
18
CAPITAL STRUCTURE

 
 
 
 
 
 
 
 
 
 
as of June 30, 2015
 
 
 
 
 
Principal Outstanding
Weighted Average Interest Rate
Average Term to Maturity (in years)
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Debt to Gross Assets
 
 
 
 
Fixed Rate - Mortgage Debt
$
139,027

5.5
%
2.6

 
Debt(1)
799,122

 
 
 
Variable Rate - Mortgage Debt
34,000

2.3
%
1.0

 
Gross Assets(2)
2,129,663

 
 
 
Variable Rate - Construction Debt
50,595

2.2
%
2.2

 
Debt to Gross Assets
37.5
%
 
 
 
Fixed Rate - 5 Yr. Unsecured Term Loan (6)
65,000

2.9
%
3.5

 
 
 
 
 
 
Fixed Rate - 7 Yr. Unsecured Term Loan (6)
122,500

3.9
%
5.5

 
Net Debt to Enterprise Value
 
 
 
 
Fixed Rate - Unsecured Senior Notes
250,000

4.6
%
9.4

 
     Net Debt(1)
$
782,040

 
 
 
Variable Rate - Unsecured Revolving Credit Facility
138,000

1.4
%
3.4

 
     Market Equity (3)
1,526,251

 
 
 
Debt(1) / Weighted Average
$
799,122

3.7
%
5.3

 
Enterprise Value
$
2,308,291

 
 
 
Less: Cash
17,082

 
 
 
 
 
 
 
 
Net Debt
$
782,040

 
 
 
Net Debt to Enterprise Value
33.9
%
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Coverage (TTM)(4)
5.3x
 

 
 
 
 
 
 
Net Debt to EBITDA - Adjusted (TTM)(5)
4.8x
 

 
 

 
 
 
Variable Rate Debt to Total Debt
27.9%
 

 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Excludes unamortized debt premium of $1.1 million.
(2) Excludes accumulated depreciation of $240 million.
(3) Market equity includes 48,350,313 shares of the Company's common stock and 318,403 units outstanding, which are convertible into common shares, and is calculated using $31.36 per share, the closing price of the Company's common stock on June 30, 2015.
(4) Equals Adjusted EBITDA of $113.5 million divided by interest expense of $21.0 million. See page 22 for reconciliation to Adjusted EBITDA.
(5)  Net Debt to EBITDA - Adjusted is calculated to normalize the impact of non-income producing construction debt. In the calculation, Net Debt is total debt (excluding the unamortized debt premium) 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.





SECOND QUARTER 2015
19
CAPITAL STRUCTURE


Weighted Average Interest Rate of Debt Maturing Each Year (1)
 
 
2016
 
2017
 
2018
 
2019
 
2020
 
2021
 
2022
 
2023
 
2024
Fixed Rate Debt
 
4.2%
 
5.5%
 
—%
 
4.3%
 
5.7%
 
3.9%
 
—%
 
—%
 
4.6%
Variable Rate Debt
 
2.3%
 
2.2%
 
1.4%
 
—%
 
—%
 
—%
 
—%
 
—%
 
—%
Total Debt
 
3.1%
 
3.7%
 
1.4%
 
4.3%
 
5.7%
 
3.9%
 
—%
 
—%
 
4.6%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 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.

SECOND QUARTER 2015
20
 
UNSECURED SENIOR NOTE COVENANTS

as of June 30, 2015
 
 
 
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
Unsecured Senior Note Covenants(1)
Requirement
 
Current Ratio
 
Total Debt to Total Asset Value
≤ 60%
 
37.6%
 
Secured Debt to Total Asset Value
≤ 40%
 
10.5%
 
Unencumbered Asset Value to Unsecured Debt
> 150%
 
301.3%
 
Interest Coverage
> 1.5x
 
3.76x
 
 
 
 
 
 
 
 
 
 
 
Calculation of Interest Coverage Ratio:
 
 
 
 
Adjusted Pro Forma EBITDA - TTM:
 
 
 
 
EdR Adjusted EBITDA(2)
$
113,487

 
 
 
Pro forma Adjustments - acquisitions & dispositions (1)
1,116

 
 
 
Total Adjusted Pro Forma EBITDA - TTM
$
114,603


 
 
 
 
 
 
 
Pro Forma Interest Expense - TTM:
 
 
 
 
Interest expense
$
21,480

 
 
 
Add back: Capitalized interest
6,113

 
 
 
Pro forma adjustments
2,917

 
 
 
Pro forma interest expense - TTM
$
30,510


 
 
 
 
 
 
 
Interest Coverage
3.76x

 
 
 
 
 
 
 
 
(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.


SECOND QUARTER 2015
21
RECONCILIATION OF NON-GAAP MEASURES


(Amounts in thousands)
 
Six Months
 
Plus: Year
 
Less: Six
 
Trailing Twelve
 
 
 
Ended
 
Ended
 
Months Ended
 
Months Ended
 
Adjusted EBITDA and Pro Forma Adjusted EBITDA:
 
June 30, 2015
 
December 31, 2014
 
June 30, 2014
 
June 30, 2015
 
Net income attributable to common shareholders
 
$
9,858

 
$
47,055

 
$
3,258

 
$
53,655

 
Straight line adjustment for ground leases
 
2,401

 
4,835

 
2,425

 
4,811

 
Acquisition costs
 
90

 
1,058

 
23

 
1,125

 
Depreciation and amortization
 
31,777

 
58,974

 
28,241

 
62,510

 
Loss on impairment of collegiate housing assets
 
—

 
12,733

 
11,780

 
953

 
Gain on sale of collegiate housing assets
 
—

 
(33,231
)
 
(10,902
)
 
(22,329
)
 
Gain on insurance settlement
 
—

 
(8,133
)
 
—

 
(8,133
)
 
Interest expense
 
11,392

 
20,656

 
10,568

 
21,480

 
Amortization of deferred financing costs
 
1,007

 
2,156

 
1,017

 
2,146

 
Interest income
 
(105
)
 
(190
)
 
(111
)
 
(184
)
 
Interest on loan to participating development
 
—

 
(6,486
)
 
—

 
(6,486
)
 
Loss on extinguishment of debt
 
—

 
3,543

 
649

 
2,894

 
Income tax expense (benefit)
 
168

 
261

 
(312
)
 
741

 
Noncontrolling interests
 
65

 
599

 
360

 
304

 
Adjusted EBITDA
 
$
56,653

 
$
103,830

 
$
46,996

 
$
113,487

 
Annualize acquisitions, developments and dispositions(1)
 
—

 
—

 
—

 
4,023

 
Pro Forma Adjusted EBITDA
 
$
56,653

 
$
103,830

 
$
46,996

 
$
117,510

 
 
 
 
 
 
 
 
 
 
 
(1) 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.

SECOND QUARTER 2015
22
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

 
Campus Village
 
Michigan State University
 
Oct '12
 
355

The Commons
 
Florida State University
 
Jan '05
 
732

 
The Province
 
Kent State University
 
Nov '12
 
596

University Towers
 
North Carolina State University
 
Jan '05
 
889

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

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 Athens
 
University of Georgia
 
Jan '05
 
612

 
Central Hall I (ONE Plan)(1)
 
University of Kentucky
 
Aug '13
 
301

The Reserve at Columbia

University of Missouri

Jan '05

676

 
Central Hall II (ONE Plan)(1)

University of Kentucky

Aug '13

300

Commons at Knoxville

University of Tennessee

Jan '05

708

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

Campus Creek

University of Mississippi

Feb '05

636

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

Campus Lodge

University of Florida

Jun '05

1,115

 
The Retreat at Oxford
 
University of Mississippi
 
Aug '13
 
668

Cape Trails

Southeast Missouri State University

Jan '06

360

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

Carrollton Crossing

University of West Georgia

Jan '06

336

 
The Cottages on Lindberg
 
Purdue University
 
Sept '13
 
745

River Pointe

University of West Georgia

Jan '06

504

 
The Varsity
 
University of Michigan
 
Dec '13
 
416

The Reserve at Saluki Pointe

Southern Illinois University

Aug '08, Aug '09

768

 
 
 
Total Same-Communities(2)
 
 
 
23,079

University Village on Colvin (ONE Plan)

Syracuse University

Aug '09

432

 
 
 
 
 
 
 
 
GrandMarc at The Corner

University of Virginia

Oct '10

641

 
The Lotus(2)

University of Colorado, Boulder

Nov '11, Aug '14

235

Wertland Square

University of Virginia

Mar '11

152

 
605 West(2)
 
Duke University
 
Aug '14
 
384

Jefferson Commons

University of Virginia

Mar '11

82

 
109 Tower(2)
 
Florida International University
 
Aug '14
 
542

The Berk on College(1)

University of California, Berkeley

May '11

122

 
The Oaks on the Square- Ph III(2)
 
University of Connecticut
 
Aug '14
 
116

The Berk on Arch(1)

University of California, Berkeley

May '11

43

 
Champions Court I (ONE Plan)(2)
 
University of Kentucky
 
Aug '14
 
740

University Village Towers

University of California, Riverside

Sept '11

554

 
Champions Court II (ONE Plan)(2)

University of Kentucky

Aug '14

427

Irish Row

University of Notre Dame

Nov '11

326

 
Haggin Hall (ONE Plan)(2)

University of Kentucky

Aug '14

396

GrandMarc at Westberry Place (ONE Plan)

Texas Christian University

Dec '11

562

 
Woodland Glen I (ONE Plan)(1)(2)

University of Kentucky

Aug '14

409

The Reserve on Stinson

University of Oklahoma

Jan '12

612

 
Woodland Glen II (ONE Plan)(1)(2)

University of Kentucky

Aug '14

409

Campus West (ONE Plan)

Syracuse University

Aug '12

313

 
The District on Apache(3)

Arizona State University- Tempe

Sept '14

900

East Edge

University of Alabama

Aug '12

774

 
Commons on Bridge(3)
 
University of Tennessee

June '15

150

The Province

East Carolina University

Sept '12

728

 
 
 
Total New-Communities
 
 
 
4,708

The District on 5th

University of Arizona

Oct '12

764

 
 
 
Total Owned-Communities
 
 
 
27,787

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) The Company previously presented this property as part of a larger community. Due to a change in method of identifying individual communities, this property is now referred to as one community.
(2) The same-community designation for leasing purposes is different than for financial reporting purposes. These communities are considered same-community for 2015/2016 leasing purposes, as the Company managed the leasing process for the 2014/2015 lease cycle and is currently managing the leasing process for the 2015/2016 lease cycle. Total same-community beds for leasing purposes is 26,737.
(3) This property is considered new for purposes of leasing, as we did not manage the leasing process for the 2014/2015 lease year.

SECOND QUARTER 2015
23
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
Jana Galan
(646) 855-3081
jana.galan@baml.com
 
CANACCORD|Genuity
Ryan Meliker
(212) 389-8094
rmeliker@canaccordgenuity.com
 
Green Street Advisors
Dave Bragg
(949) 706-8142
dbragg@greenstreetadvisors.com
 
Goldman Sachs
Andrew Rosivach
(212) 902-2796
andrew.rosivach@gs.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
Jordan Sadler
(917) 368-2280
jsadler@keybanccm.com
 
RBC Capital Market
Wes Golladay
(440) 715-2650
wes.golladay@rbccm.com
 
Robert W Baird & Co.
Drew T. Babin
(215) 553-7816
dbabin@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


SECOND QUARTER 2015
24
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 less cash and excludes non-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: Oklahoma, Missouri; North: Michigan, Ohio, Indiana, Illinois; South Central: Texas, Tennessee, Mississippi, Kentucky; Southeast: Florida, Alabama, Georgia; West: Arizona, California, Colorado.
 
 
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
Includes communities that have been owned for more than a year as of the beginning of the current fiscal year.


SECOND QUARTER 2015
25
SAFE HARBOR STATEMENT



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.


SECOND QUARTER 2015
26