Education Realty Trust, Inc. - FORM 8-K - EX-99.2 - EXHIBIT 99.2 FIRST QUARTER 2016 SUPPLEMENTAL

Attached files

file	filename
EX-99.1 - EXHIBIT 99.1 PRESS RELEASE - MAY 2, 2016 - Education Realty Trust, Inc.	a2016-q1edrearningsrelease.htm
8-K - 8-K - Education Realty Trust, Inc.	a8-kannouncing1q2016earnin.htm



		FINANCIAL HIGHLIGHTS



		FINANCIAL HIGHLIGHTS



		FINANCIAL HIGHLIGHTS



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

OPERATING DATA:
		Three Months Ended March 31,
		2016		2015		$ Chg			% Chg
	Same-community revenue	$	60,181	$	57,848	$	2,333		4.0	%
	Total community revenue	70,183		60,383		9,800			16.2	%
	Total revenue	73,379		64,129		9,250			14.4	%

	Same-community net operating income	38,201		35,210		2,991			8.5	%
	Total community net operating income	45,294		36,243		9,051			25.0	%
	Total operating income	20,216		13,838		6,378			46.1	%

	Net income attributable to EdR	16,669		6,941		9,728			140.2	%
	Per share - basic	$	0.27	$	0.14	$	0.13		92.9	%
	Per share - diluted	0.26		0.14		0.12			85.7	%

	Funds from operations (FFO)	22,781		23,096		(315		)	(1.4	)%
	Per weighted average share/unit ⁽¹⁾	$	0.36	$	0.48	$	(0.12	)	(25.0	)%

	Core funds from operations (Core FFO)	33,948		24,297		9,651			39.7	%
	Per weighted average share/unit ⁽¹⁾	$	0.54	$	0.50	$	0.04		8.0	%

FINANCIAL RATIOS:
		3/31/2016				12/31/2015
	Net debt to gross assets	15.8%				27.2%
	Debt to gross assets	22.4%				28.3%
	Net debt to enterprise value	11.7%				22.0%
	Interest coverage ratio (TTM)	5.4x				4.8x
	Net debt to EBITDA - Adjusted (TTM)	1.5x				4.0x


⁽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.



FIRST QUARTER 2016		1



		BALANCE SHEET



(Amount in thousands, except share and per share data)		March 31, 2016			December 31, 2015
Assets		(unaudited)
	Collegiate housing properties, net ⁽¹⁾	$	1,744,189		$	1,774,796
	Assets under development	185,328			117,384
	Cash and cash equivalents	195,848			33,742
	Restricted cash	8,930			9,784
	Other assets	63,005			66,125
Total assets		$	2,197,300		$	2,001,831

Liabilities and equity
Liabilities:
	Mortgage and construction loans, net of unamortized premium and deferred financing costs	$	118,266		$	204,511
	Unsecured revolving credit facility	—			—
	Unsecured term loans, net of unamortized deferred financing costs	186,581			186,518
	Unsecured senior notes, net of unamortized deferred financing costs	247,743			247,678
	Accounts payable and accrued expenses	93,459			85,670
	Deferred revenue	19,795			19,024
Total liabilities		665,844			743,401

Commitments and contingencies		—			—

Redeemable noncontrolling interests		10,676			13,560

Equity:
EdR stockholders' equity:
	Common stock, $0.01 par value per share, 200,000,000 shares authorized, 65,011,662 and 56,879,003 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively	650			569
	Preferred shares, $0.01 par value per share, 50,000,000 shares authorized, no shares issued and outstanding	—			—
	Additional paid-in capital	1,525,104			1,263,603
	Accumulated deficit	(5,329		)	(21,998		)
	Accumulated other comprehensive loss	(8,921		)	(5,475		)
Total EdR stockholders' equity		1,511,504			1,236,699
Noncontrolling interest		9,276			8,171
Total equity		1,520,780			1,244,870
Total liabilities and equity		$	2,197,300		$	2,001,831

⁽¹⁾ Amount is net of accumulated depreciation of $285,324 and $270,993, as of March 31, 2016 and December 31, 2015, respectively.



FIRST QUARTER 2016		2



		OPERATING RESULTS



(Amounts in thousands, except per share data, unaudited)
	Three months ended March 31,
	2016			2015			$ Change
Revenues:
Collegiate housing leasing revenue	$	70,183		$	60,383		$	9,800
Third-party development consulting services	483			597			(114		)
Third-party management services	894			1,053			(159		)
Operating expense reimbursements	1,819			2,096			(277		)
Total revenues	73,379			64,129			9,250
Operating expenses:
Collegiate housing leasing operations	24,889			24,140			749
Development and management services	2,521			2,702			(181		)
General and administrative	2,581			2,470			111
Development pursuit, acquisition costs and severance	528			169			359
Depreciation and amortization	17,516			15,866			1,650
Ground lease expense	3,309			2,848			461
Reimbursable operating expenses	1,819			2,096			(277		)
Total operating expenses	53,163			50,291			2,872
Operating income	20,216			13,838			6,378
Nonoperating (income) expenses:
Interest expense	4,663			5,941			(1,278		)
Amortization of deferred financing costs	480			516			(36		)
Interest income	(74		)	(38		)	(36		)
Loss on extinguishment of debt	9,920			—			9,920
Total nonoperating expenses	14,989			6,419			8,570
Income before equity in losses of unconsolidated entities, income taxes and gain on sale of collegiate housing properties	5,227			7,419			(2,192		)
Equity in losses of unconsolidated entities	(244		)	(194		)	(50		)
Income before income taxes and gain on sale of collegiate housing properties	4,983			7,225			(2,242		)
Income tax expense	51			78			(27		)
Income before gain on sale of collegiate housing properties	4,932			7,147			(2,215		)
Gain on sale of collegiate housing properties	11,873			—			11,873
Net income	16,805			7,147			9,658
Less: Net income attributable to the noncontrolling interests	136			206			(70		)
Net income attributable to Education Realty Trust, Inc.	$	16,669		$	6,941		$	9,728



FIRST QUARTER 2016		3



		OPERATING RESULTS



(Amounts in thousands, except per share data, unaudited)
	Three months ended March 31,
	2016			2015			$ Change
Other comprehensive income:
Loss on cash flow hedging derivatives	(3,446		)	(2,439		)	(1,007		)
Comprehensive income	$	13,223		$	4,502		$	8,721


Earnings per share information:
Net income attributable to Education Realty Trust, Inc. common stockholders per share – basic	$	0.27		$	0.14		$	0.13
Net income attributable to Education Realty Trust, Inc. common stockholders per share – diluted	$	0.26		$	0.14		$	0.12

Weighted average shares of common stock outstanding – basic	62,677			48,179			14,498
Weighted average shares of common stock outstanding – diluted ⁽¹⁾	62,963			48,501			14,462


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



FIRST QUARTER 2016		4



		FUNDS FROM OPERATIONS



(Amounts in thousands, except per share data, unaudited)		Three months ended March 31,
		2016			2015		$ Change
Net income attributable to EdR		$	16,669		$	6,941	$	9,728
	Gain on sale of collegiate housing assets	(11,873		)	—		(11,873		)
	Real estate related depreciation and amortization	17,113			15,523		1,590
	Equity portion of real estate depreciation and amortization on equity investees	666			420		246
	Noncontrolling interests	206			212		(6		)
Funds from operations ("FFO") available to stockholders and unitholders		22,781			23,096		(315		)
	percent change						(1.4		)%

FFO adjustments:
	Loss on extinguishment of debt	9,920			—		9,920
	Acquisition costs	60			—		60
	Straight-line adjustment for ground leases ⁽¹⁾	1,187			1,201		(14		)
FFO adjustments		11,167			1,201		9,966

Core funds from operations ("Core FFO") available to stockholders and unitholders		$	33,948		$	24,297	$	9,651
	percent change						39.7		%

FFO per weighted average share/unit ⁽²⁾		$	0.36		$	0.48	$	(0.12	)
	percent change						(25.0		)%
Core FFO per weighted average share/unit ⁽²⁾		$	0.54		$	0.50	$	0.04
	percent change						8.0		%

Weighted average shares/units ⁽²⁾		62,963			48,501		14,462
	percent change						29.8		%


⁽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 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 2016		5



		COMMUNITY OPERATING RESULTS



(Amounts in thousands, unaudited)

		Three months ended March 31,
		2016		2015		$ Change			% Change
Revenues
	Same-communities⁽¹⁾	$	60,181	$	57,848	$	2,333		4.0	%
	New-communities ⁽²⁾	9,469		1,307		8,162			NM
	Sold-communities⁽³⁾	533		1,228		(695		)	NM
Total revenues		70,183		60,383		9,800			16.2	%

Operating expenses ⁽⁴⁾
	Same-communities⁽¹⁾	21,980		22,638		(658		)	(2.9	)%
	New-communities ⁽²⁾	2,529		791		1,738			NM
	Sold-communities⁽³⁾	380		711		(331		)	NM
Total operating expenses		24,889		24,140		749			3.1	%

Net operating income
	Same-communities⁽¹⁾	38,201		35,210		2,991			8.5	%
	New-communities ⁽²⁾	6,940		516		6,424			NM
	Sold-communities⁽³⁾	153		517		(364		)	NM
Total net operating income		$	45,294	$	36,243	$	9,051		25.0	%



⁽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 24 of this supplement for a listing of same-communities.
⁽²⁾ See page 24 of this supplement for a listing of which communities are categorized as new-communities.
⁽³⁾ Represents operating results from communities sold in 2015 and 2016.
⁽⁴⁾ 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.



FIRST QUARTER 2016		6



	SAME-COMMUNITY EXPENSES BY CATEGORY



(Amounts in thousands, except bed and per-bed data, unaudited)

	Three months ended March 31, 2016						Three months ended March 31, 2015
	Amount		Per Bed		% of Total Operating Expenses		Amount		Per Bed		% of Total Operating Expenses		$ Change				% Change
Utilities⁽¹⁾	$	6,300	$	240	28	%	$	6,391	$	244	27	%	$	(91	)		(1.4	)%
On-Site Payroll	4,336		165		20	%	4,263		163		19	%	73				1.7	%
General & Administrative⁽²⁾	3,580		137		16	%	3,809		145		17	%	(229		)		(6.0	)%
Maintenance & Repairs⁽³⁾	1,368		52		6	%	1,247		48		6	%	121				9.7	%
Marketing	1,008		38		5	%	1,076		41		5	%	(68		)		(6.3	)%
Total Direct Operating Expenses	$	16,592	$	632	75	%	$	16,786	$	641	74	%	$	(194	)		(1.2	)%

Real Estate Taxes	4,815		184		22	%	5,213		$	199	23	%	$	(398	)	⁽⁴⁾	(7.6	)%
Insurance	573		22		3	%	639		24		3	%	(66		)		(10.3	)%
Total Fixed Operating Expenses	$	5,388	$	206	25	%	$	5,852	$	223	26	%	$	(464	)		(7.9	)%
Total Property Operating Expenses	$	21,980	$	838	100	%	$	22,638	$	864	100	%	$	(658	)		(2.9	)%

Same-community beds	26,224

⁽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 recognized $0.8 million in real estate taxes related to a tax assessment covering several prior assessment years. Without the charge in the prior year, real estate taxes would have increased approximately $0.4 million and total operating expenses would have increased 0.7% over the prior year.



FIRST QUARTER 2016		7



	COMMUNITY OPERATIONS - TRAILING FIVE QUARTERS



(Amounts in thousands, except beds and per bed amounts)		Three Months Ended															Total / Weighted Average - Trailing Twelve Months
		March 31, 2015			June 30, 2015			September 30, 2015			December 31, 2015			March 31, 2016			Total / Weighted Average - Trailing Twelve Months
2016 Same Communities
	Revenue	$	57,848		$	51,101		$	48,832		$	60,945		$	60,181		$	221,059
	Operating Expenses	22,638			21,311			25,828			22,397			21,980			91,516
	Net Operating Income	$	35,210		$	29,790		$	23,004		$	38,548		$	38,201		$	129,543
	Margin	61		%	58		%	47		%	63		%	63		%	59		%
	Beds	78,672			78,672			78,672			78,672			78,672			314,688
	Occupancy⁽¹⁾	96.3		%	84.3		%	89.4		%	97.5		%	96.6		%	92.0		%
	Net Apartment Rent per Occupied Bed	$	719		$	715		$	624		$	751		$	743		$	710
	Other Income per Occupied Bed	45			55			70			44			48			54
	Total Revenue per Occupied Bed	$	764		$	770		$	694		$	795		$	791		$	764
	Operating Expense per Available Bed	$	288		$	271		$	328		$	285		$	279		$	291

2016 New Communities
	Revenue	$	1,307		$	1,365		$	4,822		$	9,646		$	9,469		$	25,302
	Operating Expenses	791			833			1,860			2,720			2,529			7,942
	Net Operating Income	$	516		$	532		$	2,962		$	6,926		$	6,940		$	17,360
	Margin	39		%	39		%	61		%	72		%	73		%	69		%
	Beds	2,004			2,154			8,085			11,376			11,570			33,185
	Occupancy⁽¹⁾	98.2		%	96.1		%	89.2		%	92.9		%	92.6		%	92.1		%
	Net Apartment Rent per Occupied Bed	$	637		$	631		$	615		$	885		$	849		$	791
	Other Income per Occupied Bed	27			29			53			28			34			36
	Total Revenue per Occupied Bed	$	664		$	660		$	668		$	913		$	883		$	827
	Operating Expense per Available Bed	$	395		$	387		$	230		$	239		$	219		$	239

2016 Sold Communities
	Revenue	$	1,228		$	1,267		$	1,072		$	1,189		$	533		$	4,061
	Operating Expenses	711			723			756			714			380			2,573
	Net Operating Income	$	517		$	544		$	316		$	475		$	153		$	1,488
	Margin	42		%	43		%	29		%	40		%	29		%	37		%
	Beds	2,232			2,232			2,232			2,232			1,152			7,848
	Occupancy⁽¹⁾	77.7		%	79.2		%	75.0		%	69.1		%	51.7		%	71.1		%
	Net Apartment Rent per Occupied Bed	$	690		$	697		$	622		$	744		$	867		$	706
	Other Income per Occupied Bed	18			20			18			27			27			22
	Total Revenue per Occupied Bed	$	708		$	717		$	640		$	771		$	894		$	728
	Operating Expense per Available Bed	$	318		$	324		$	339		$	320		$	330		$	328



FIRST QUARTER 2016		8



	COMMUNITY OPERATIONS - TRAILING FIVE QUARTERS



(Amounts in thousands, except beds and per bed amounts)		Three Months Ended															Total / Weighted Average - Trailing Twelve Months
		March 31, 2015			June 30, 2015			September 30, 2015			December 31, 2015			March 31, 2016			Total / Weighted Average - Trailing Twelve Months
2016 Total Communities
	Revenue	$	60,383		$	53,733		$	54,726		$	71,780		$	70,183		$	250,422
	Operating Expenses	24,140			22,867			28,444			25,831			24,889			102,031
	Net Operating Income	$	36,243		$	30,866		$	26,282		$	45,949		$	45,294		$	148,391
	Margin	60		%	57		%	48		%	64		%	65		%	59		%
	Beds	82,908			83,058			88,989			92,280			91,394			355,721
	Occupancy⁽¹⁾	95.8		%	84.5		%	89.0		%	96.3		%	95.5		%	91.5		%
	Net Apartment Rent per Occupied Bed	$	716		$	712		$	624		$	767		$	757		$	718
	Other Income per Occupied Bed	44			53			67			41			46			52
	Total Revenue per Occupied Bed	$	760		$	765		$	691		$	808		$	803		$	770
	Operating Expense per Available Bed	$	291		$	275		$	320		$	280		$	272		$	287

⁽¹⁾ Represents the weighted average physical occupancy for the period presented.



FIRST QUARTER 2016		9



	PRELEASING SUMMARY



						Preleasing at April 26,
	Design Beds	% of NOI		2015 Opening Occupancy		2016		2015		Preleasing Ahead/(Behind)		Projected Rate Growth

Same-Communities - by Tier
Prior Year Occupancy Below 90% (Tier 1)	2,000	5.0	%	82.5	%	57.2	%	45.7	%	11.5	%	1.0	%
Prior Year Occupancy 90% to 96.9% (Tier 2)	5,290	14.6	%	95.2	%	61.4	%	61.2	%	0.2	%	2.0	%
Prior Year Occupancy 97% and Above (Tier 3)	16,999	80.4	%	99.8	%	87.2	%	86.9	%	0.3	%	3.6	%
Total Same-Communities ⁽¹⁾	24,289	100.0	%	97.3	%	79.1	%	77.9	%	1.2	%	3.2	%
Total New-Communities ⁽²⁾	2,314					73.3	%
Total Communities	26,603					78.6	%

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 does not include 4,592 same-community beds or 1,141 new-community beds to be delivered in 2016 at the University of Kentucky. Although the university's assignment process does not occur until May, all 5,733 beds, which include the 601 beds delivered in 2013, 2,381 beds delivered in 2014, 1,610 beds delivered in 2015, and 1,141 beds to be delivered in August 2016, are currently over 100% applied for this fall. The Lokal, serving Colorado State University, is also not included in the above preleasing as it was acquired late in the first quarter of 2016. Currently, the community is 99.5% occupied.


⁽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 2016/2017 leasing cycle. Design Beds for Same-Communities included in the 2016 Preleasing Summary above include the following design beds: (1) total same-community design beds on page 24 of 26,224 less 2,982 beds at the University of Kentucky plus (2) 1,047 design beds on communities that are considered same for leasing purposes (see note 1 on page 24).

⁽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 2015 acquisitions of The Commons on Bridge (150 beds) and The Province Boulder (317 beds) plus (2) beds at our 2016 development deliveries of The Retreat at Oxford (1,018 beds) and The Retreat at Blacksburg (829 beds).



FIRST QUARTER 2016		10



	SAME-COMMUNITY PRELEASING BY REGION AND DISTANCE



						Preleasing at April 26,
	Design Beds	% of NOI		2015 Opening Occupancy		2016		2015		Preleasing Ahead/(Behind)		Projected Rate Growth

Same-Communities - by Region ⁽¹⁾
Mid-Atlantic	5,818	29.8	%	99.0	%	88.2	%	83.5	%	4.7	%	3.0	%
Midwest	2,276	6.2	%	91.3	%	47.6	%	64.5	%	(16.9	)%	—	%
North	3,205	11.8	%	98.1	%	82.8	%	82.4	%	0.4	%	2.1	%
South Central	4,082	18.9	%	95.9	%	83.1	%	79.7	%	3.4	%	3.6	%
Southeast	5,681	17.5	%	97.9	%	74.4	%	68.0	%	6.4	%	3.0	%
West	3,227	15.8	%	98.8	%	84.6	%	88.1	%	(3.5	)%	5.8	%
Total Same-Communities	24,289	100.0	%	97.3	%	79.1	%	77.9	%	1.2	%	3.2	%


Same-Communities - by Distance from Campus
0-0.2 miles	14,896	72.5	%	98.0	%	83.3	%	80.6	%	2.7	%	3.6	%
0.21-0.49 miles	2,144	7.0	%	96.4	%	68.4	%	69.5	%	(1.1	)%	2.4	%
0.5-0.99 miles	336	0.9	%	95.5	%	64.0	%	82.4	%	(18.4	)%	9.2	%
1.0-1.99 miles	5,053	15.1	%	97.0	%	76.1	%	75.3	%	0.8	%	1.8	%
2.0 & > miles	1,860	4.5	%	94.8	%	69.2	%	72.3	%	(3.1	)%	1.1	%
Total Same-Communities	24,289	100.0	%	97.3	%	79.1	%	77.9	%	1.2	%	3.2	%

NOTE: Leasing update does not include 4,592 same-community beds or 1,141 new-community beds to be delivered in 2016 at the University of Kentucky. Although the university's assignment process does not occur until May, all 5,733 beds, which include the 601 beds delivered in 2013, 2,381 beds delivered in 2014, 1,610 beds delivered in 2015, and 1,141 beds to be delivered in August 2016, are currently over 100% applied for this fall. The Lokal, serving Colorado State University, is also not included in the above preleasing as it was acquired late in the first quarter of 2016. Currently, the community is 99.5% occupied.

⁽¹⁾ See definition of regions on page 26.



FIRST QUARTER 2016		11



	TOP EdR MARKETS AND STATES BY REVENUE

*The data above is based on revenue for the twelve months ended March 31, 2016 and excludes properties that were sold during the period.

⁽¹⁾ All revenue at the University of Kentucky is from ONE Plan^SM on-campus collegiate housing communities.



FIRST QUARTER 2016		12



	TOP EdR MARKETS AND STATES BY REVENUE

*The data above is based on revenue for the twelve months ended March 31, 2016 and excludes properties that were sold during the period.



FIRST QUARTER 2016		13



	NEW SUPPLY AND ENROLLMENT - EdR MARKETS

New supply growth expected to slow 20% from 2015 to 2016

EdR Market and Revenue Growth

*Enrollment projection represents the 3-year enrollment CAGR through 2014 for our markets.



FIRST QUARTER 2016		14



	OWNED COMMUNITY PROJECTED 2016 NEW SUPPLY AND DEMAND INFORMATION




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	3,738	12%	13%	1.5%	0.5%	1.0%
Mid Atlantic	6,647	20%	25%	0.9%	1.5%	(0.6)%
North	3,205	10%	8%	0.2%	1.2%	(1.0)%
South Central	10,983	34%	37%	2.2%	3.5%	(1.3)%
Southeast	5,681	17%	12%	0.9%	0.7%	0.2%
Midwest	2,276	7%	5%	1.7%	1.6%	0.1%
Total	32,530	100%	100%	1.5%	1.8%	(0.3)%

Region ⁽⁴⁾	Anticipated 2016 Enrollment Growth⁽²⁾	2016 Supply Growth	Variance
West	2,900	761	2,139
Mid Atlantic	2,081	2,300	(219)
North	1,124	1,913	(789)
South Central	3,288	5,686	(2,398)
Southeast	1,269	1,791	(522)
Midwest	1,504	1,422	82
Total	12,166	13,873	(1,707)

NOTE: Schedule represents all markets served by EdR communities and includes the completed acquisition of the Lokal in 2016 and all 2016 developments. Data was obtained from the National Center for Education Statistics, AXIOmetrics and local market data.

⁽¹⁾ NOI is based on 2016 forecast net operating income with proforma adjustments for 2016 developments and acquisitions.
⁽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 24 of 30,210 plus 2,320 beds at our 2016 deliveries at the University of Kentucky (1,141 beds), The Retreat at Blacksburg (829 beds) and the second phase at the Retreat at Oxford (350 beds) (also see page 17).
⁽⁴⁾See definition of regions on page 26.



FIRST QUARTER 2016		15



	OWNED COMMUNITY PROJECTED 2016 NEW SUPPLY AND DEMAND INFORMATION





Projected 2016 New Supply Sorted by Percentage Increase

New Supply Growth	University Markets		EdR Bed Count		Pro Forma EdR NOI %⁽¹⁾
0%	12	32%	15,037	46%	45%
0.1% to 1.0%	8	22%	3,856	12%	13%
1.0% - 3.0%	10	27%	7,715	24%	23%
3.0% - 5.0%	5	14%	3,612	11%	13%
> 5.0%	2	5%	2,310	7%	6%
Total	37	100%	32,530	100%	100%


University Markets with > 5% Increase in 2016 New Supply

University	New Supply Increase	Pro Forma EdR NOI %
University of Mississippi	8.2%	4.4%
University of Louisville	8.6%	2.2%
		6.6%

NOTE: Schedule represents all markets served by EdR communities and includes the completed acquisition of the Lokal in 2016 and all 2016 developments. Data was obtained from the National Center for Education Statistics, AXIOmetrics and local market data.
⁽¹⁾ NOI is based on 2016 forecast net operating income with proforma adjustments for 2016 developments and acquisitions.



FIRST QUARTER 2016		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 - Limestone Park I & II⁽¹⁾	ONE Plan ⁽²⁾	1,141	In progress	Summer 2016	$	83,911	100	%	$	83,911	$	16,789
University of Mississippi - The Retreat - Phase II	Wholly Owned	350	In progress	Summer 2016	26,161		100	%	26,161		8,088
Virginia Tech - Retreat at Blacksburg - Ph I & II	Joint Venture	829	In progress	Summer 2016	64,433		75	%	48,325		20,188
Total - 2016 Deliveries		2,320			$	174,505			$	158,397	$	45,065

University of Kentucky - University Flats	ONE Plan ⁽²⁾	771	In progress	Summer 2017	$	74,038	100	%	74,038		$	59,040
Boise State University	ONE Plan ⁽²⁾	656	In progress	Summer 2017	39,763		100	%	39,763		37,969
University of Kentucky - Lewis Hall	ONE Plan⁽²⁾	346	In progress	Summer 2017	26,935		100	%	26,935		25,667
Michigan State University - SkyVue	Joint Venture	824	In progress	Summer 2017	89,906		90	%	80,915		63,999
Texas State University - The Local: Downtown	Joint Venture	304	In progress	Summer 2017	29,631		80	%	23,705		17,714
Oklahoma State University	Joint Venture	475	In progress	Summer 2017	47,227		70	%	33,059		33,059
Total - 2017 Deliveries		3,376			$	307,500			$	278,415	$	237,448

Total Active Projects		5,696			$	482,005			$	436,812	$	282,513

Recently Awarded	Project Type	Bed Count	Estimated Start Date	Anticipated Completion Date	Total Project Development Cost
Cornell University	TBD ⁽³⁾	850	Fall 2016	Summer 2018	$	80,000
Northern Michigan University ⁽⁴⁾	ONE Plan ⁽²⁾	1,200	Summer 2016	Summer 2018	$	75,000

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 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.
⁽³⁾ In February 2016, Cornell University and EdR executed a pre-closing agreement and design and site planning are under way toward an expected fall 2016 groundbreaking and commencement of construction for an approximate 850 bed $80.0 million on-campus housing community targeted for summer 2018 delivery.
⁽⁴⁾ In April 2016, Northern Michigan University and EdR executed a pre-closing agreement and design and site planning are under way. This project is expected to open in phases starting in 2017 with the final phase in 2018.



FIRST QUARTER 2016		17



	THIRD-PARTY DEVELOPMENT SUMMARY



(Amounts in thousands except bed counts)


THIRD-PARTY PROJECTS
Active Projects	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, 2016 ⁽¹⁾		Remaining Fees to Earn
University of Cal. Berkeley - Bowles Hall	186	In progress	Summer 2016	$	35,947	$	1,768	$	826	$	451	$	491
Clarion University of Pennsylvania	728	In progress	(2)	55,104		2,092		2,046		2		44
East Stroudsburg University - Pennsylvania Ph II	488	(3)	Summer 2017	TBD		TBD		—		—		TBD
Texas A&M - Commerce	490	Summer 2016	Summer 2017	25,770		1,131		—		—		1,131
Shepherd University	298	Summer 2016	Summer 2017	21,097		1,025		—		—		1,025
Southeastern Louisiana University	550	Summer 2016	Summer 2017	TBD		TBD		—		—		TBD
Total	2,740			$	137,918	$	6,016	$	2,872	$	453	$	2,691

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.
⁽²⁾ The first phase of the project at Clarion University of Pennsylvania for collegiate housing delivered in August 2015, the second phase of the project for collegiate housing delivered in December 2015 and a third phase of the project for other capital improvements is scheduled to deliver in the summer of 2016.
⁽³⁾ Construction on the second phase of the third-party development at East Stroudsburg University is expected to commence in May 2016 after final site plan approval has been obtained.



FIRST QUARTER 2016		18



		CAPITAL STRUCTURE




as of March 31, 2016					Principal Outstanding		Weighted Average Interest Rate		Average Term to Maturity (in years)
(Amounts in thousands)

Total Debt to Gross Assets
Debt⁽¹⁾	$	557,024		Variable Rate - Mortgage Debt	33,475		2.5	%	0.3
Gross Assets⁽²⁾	2,482,624			Variable Rate - Construction Debt	86,049		2.5	%	1.8
Debt to Gross Assets	22.4		%	Fixed Rate - 5 Yr. Unsecured Term Loan ⁽⁶⁾	65,000		2.9	%	2.8
				Fixed Rate - 7 Yr. Unsecured Term Loan ⁽⁶⁾	122,500		3.9	%	4.8
Net Debt to Gross Assets				Fixed Rate - Unsecured Senior Notes	250,000		4.6	%	8.7
Net Debt⁽¹⁾	$	361,176		Variable Rate - Unsecured Revolving Credit Facility	—		1.7	%	2.6
Gross Assets⁽⁷⁾	2,286,776			Debt⁽¹⁾ / Weighted Average	$	557,024	3.8	%	5.6
Net Debt to Gross Assets	15.8		%	Less: Cash	195,848
				Net Debt	$	361,176
Net Debt to Enterprise Value
Net Debt⁽¹⁾	$	361,176
Market Equity ⁽³⁾	2,715,650			Interest Coverage (TTM)⁽⁴⁾	5.4x
Enterprise Value	$	3,076,826		Net Debt to EBITDA - Adjusted (TTM)⁽⁵⁾	1.5x
				Variable Rate Debt to Total Debt	21.5%
Net Debt to Enterprise Value	11.7		%


⁽¹⁾ Excludes unamortized deferred financing costs of $4.4 million.
⁽²⁾ Excludes accumulated depreciation of $285.3 million.
⁽³⁾Market equity includes 65,011,662 shares of the Company's common stock and 268,394 units outstanding, which are convertible into common shares, and is calculated using $41.60 per share, the closing price of the Company's common stock on March 31, 2016.
⁽⁴⁾ Equals Adjusted EBITDA of $125.5 million divided by interest expense of $23.2 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 deferred financing costs) less cash and excludes non income-producing debt related to assets under development at time of calculation. EBITDA is Proforma Adjusted EBITDA, which includes proforma adjustments to reflect all acquisitions, development deliveries and dispositions as if such had occurred at the beginning of the 12 month period being presented.
⁽⁶⁾ The Trust entered into interest rate swaps to effectively fix the interest rate on the term loans. The weighted average interest rates reflect the swapped (fixed) rate plus the current margin.
⁽⁷⁾ Excludes accumulated depreciation of $285.3 million and cash of $195.8 million.



FIRST QUARTER 2016		19



		CAPITAL STRUCTURE



NOTE: At March 31, 2015, the Trust had $195.8 million of cash on hand.

Weighted Average Interest Rate of Debt Maturing Each Year ⁽²⁾
	2016	2017	2018	2019	2020	2021	2022	2023	2024
Fixed Rate Debt	—%	—%	—%	2.9%	—%	3.9%	—%	—%	4.6%
Variable Rate Debt	2.5%	2.5%	—%	2.5%	—%	—%	—%	—%	—%
Total Debt	2.5%	2.5%	—%	2.8%	—%	3.9%	—%	—%	4.6%

⁽¹⁾ The unsecured revolving credit facility has an initial maturity of November 19, 2018 and has a one-year extension option that may be exercised if certain conditions are met.
⁽²⁾ The Trust entered into interest rate swaps to effectively fix the interest rate on the term loans. The weighted average interest rates reflect the swapped (fixed) rate plus the current margin.



FIRST QUARTER 2016		20



			UNSECURED SENIOR NOTE COVENANTS



as of March 31, 2016
(Amounts in thousands)

Unsecured Senior Note Covenants⁽¹⁾	Requirement			Current Ratio
Total Debt to Total Asset Value	≤ 60%			22.5%
Secured Debt to Total Asset Value	≤ 40%			4.8%
Unencumbered Asset Value to Unsecured Debt	> 150%			519.2%
Interest Coverage	> 1.5x			5.64x


Calculation of Interest Coverage Ratio:
Adjusted Pro Forma EBITDA - TTM:
EdR Adjusted EBITDA⁽²⁾	$	125,508
Pro forma Adjustments - acquisitions & dispositions⁽¹⁾	2,060
Total Adjusted Pro Forma EBITDA - TTM	$	127,568

Pro Forma Interest Expense - TTM:
Interest expense	$	23,171
Add back: Capitalized interest	5,414
Pro forma adjustments⁽¹⁾	(5,974		)
Pro forma interest expense - TTM	$	22,611

Interest Coverage	5.64x

⁽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.



FIRST QUARTER 2016		21



	RECONCILIATION OF NON-GAAP MEASURES



(Amounts in thousands)	Three Months			Plus: Year			Less: Three			Trailing Twelve
	Ended			Ended			Months Ended			Months Ended
Adjusted EBITDA and Pro Forma Adjusted EBITDA:	March 31, 2016			December 31, 2015			March 31, 2015			March 31, 2016
Net income attributable to common shareholders	$	16,669		$	19,911		$	6,941		$	29,639
Straight line adjustment for ground leases	1,187			4,782			1,201			4,768
Acquisition costs	60			293			—			353
Depreciation and amortization	17,516			68,022			15,866			69,672
Gain on sale of collegiate housing assets	(11,873		)	(2,770		)	—			(14,643		)
Interest expense	4,663			24,449			5,941			23,171
Amortization of deferred financing costs	480			2,089			516			2,053
Interest income	(74		)	(213		)	(38		)	(249		)
Loss on extinguishment of debt	9,920			403			—			10,323
Income tax expense (benefit)	51			347			78			320
Noncontrolling interests	136			171			206			101
Adjusted EBITDA	$	38,735		$	117,484		$	30,711		$	125,508
Annualize acquisitions, developments and dispositions⁽¹⁾	—			—			—			13,016
Pro Forma Adjusted EBITDA	$	38,735		$	117,484		$	30,711		$	138,524

⁽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.



FIRST QUARTER 2016		22



	UPDATED 2016 GUIDANCE



(amounts in thousands, except per share data)
	Original 2016 Guidance
							Capital Transactions
	Low			High			Low			High
Core FFO Per Share - Base	$	1.77		$	1.84

Dispositions	(0.12		)	(0.13		)	$	150,000	-	$	200,000
Acquisitions	0.05			0.05			$	75,000	-	$	125,000

Core FFO Per Share - Net	$	1.70		$	1.76



	Updated 2016 Guidance
							Capital Transactions
	Low			High			Low			High
Core FFO Per Share - Base	$	1.77		$	1.84

Dispositions⁽¹⁾	(0.05		)	(0.05		)	$95,000
Acquisitions⁽¹⁾	0.12			0.12			$284,000
Completed Equity Sales ⁽¹⁾	(0.07		)	(0.07		)	$113,000
Additional Capital Transactions	(0.04		)	(0.05		)	$	100,000	-	$	150,000

Core FFO Per Share - Net	$	1.73		$	1.79

Weighted Average Shares/Units	67,200			67,700
(1) These transactions have either already occurred or have been announced. The completed equity sales represents issuances under the Company's ATM and DRIP program during March and April.



FIRST QUARTER 2016		23



	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

The Oaks on the Square

University of Connecticut

Aug '12, Aug '13

503

The Commons

Florida State University

Jan '05

732

3949

Saint Louis University

Aug '13

256

University Towers

North Carolina State University

Jan '05

889

Lymon T. Johnson Hall (ONE Plan)⁽⁴⁾

University of Kentucky

Aug '13

301

The Reserve on Perkins

Oklahoma State University

Jan '05

732

Central Hall II (ONE Plan)⁽⁴⁾

University of Kentucky

Aug '13

300

The Pointe

Pennsylvania State University

Jan '05

984

2400 Nueces (ONE Plan)

University of Texas at Austin

Aug '13

655

The Lofts

University of Central Florida

Jan '05

730

Roosevelt Point

Arizona State University-
Downtown Phoenix

Aug '13

609

The Reserve at Athens

University of Georgia

Jan '05

612

The Retreat at State College

Pennsylvania State University

Sept '13

587

The Reserve at Columbia

University of Missouri

Jan '05

676

The Cottages on Lindberg

Purdue University

Sept '13

745

Commons at Knoxville

University of Tennessee

Jan '05

708

The Varsity

University of Michigan

Dec '13

415

Campus Creek

University of Mississippi

Feb '05

636

The Lotus

University of Colorado, Boulder

Nov '11, Aug '14

235

Campus Lodge

University of Florida

Jun '05

1,115

109 Tower

Florida International University

Aug '14

542

Carrollton Crossing

University of West Georgia

Jan '06

336

The Oaks on the Square- Ph III

University of Connecticut

Aug '14

116

River Pointe

University of West Georgia

Jan '06

504

Champions Court I (ONE Plan)⁽⁴⁾

University of Kentucky

Aug '14

740

The Reserve at Saluki Pointe

Southern Illinois University

Aug '08, Aug '09

768

Champions Court II (ONE Plan)⁽⁴⁾

University of Kentucky

Aug '14

427

University Village on Colvin (ONE Plan)

Syracuse University

Aug '09

432

Haggin Hall (ONE Plan)⁽⁴⁾

University of Kentucky

Aug '14

396

GrandMarc at The Corner

University of Virginia

Oct '10

641

Woodland Glen I (ONE Plan)⁽⁴⁾

University of Kentucky

Aug '14

409

Wertland Square

University of Virginia

Mar '11

152

Woodland Glen II (ONE Plan)⁽⁴⁾

University of Kentucky

Aug '14

409

Jefferson Commons

University of Virginia

Mar '11

The District on Apache

Arizona State University - Tempe

Sept '14

900

The Berk on College

University of California, Berkeley

May '11

122

Total Same-Communities

26,224

The Berk on Arch

University of California, Berkeley

May '11

University Village Towers

University of California, Riverside

Sept '11

554

The Retreat at Oxford⁽³⁾

University of Mississippi

Aug '13

668

Irish Row

University of Notre Dame

Nov '11

326

Commons on Bridge⁽²⁾

University of Tennessee

June '15

150

GrandMarc at Westberry Place (ONE
Plan)

Texas Christian University

Dec '11

562

Oaks on the Square- Ph IV⁽¹⁾

University of Connecticut

Aug '15

391

The Reserve on Stinson

University of Oklahoma

Jan '12

612

The Retreat at Louisville⁽¹⁾

University of Louisville

Aug '15

656

Campus West (ONE Plan)

Syracuse University

Aug '12

313

Woodland Glen III (ONE Plan)⁽⁴⁾

University of Kentucky

Aug '15

782

East Edge

University of Alabama

Aug '12

774

Woodland Glen IV (ONE Plan)⁽⁴⁾

University of Kentucky

Aug '15

578

The Province

East Carolina University

Sept '12

728

Woodland Glen V (ONE Plan)⁽⁴⁾

University of Kentucky

Aug '15

250

The District on 5th

University of Arizona

Oct '12

764

The Province Boulder⁽²⁾

University of Colorado, Boulder

Sept '15

317

Campus Village

Michigan State University

Oct '12

355

Lokal

Colorado State University

March '16

194

The Province

Kent State University

Nov '12

596

Total New-Communities

3,986

The Suites at Overton Park

Texas Tech University

Dec '12

465

Total Owned-Communities

30,210

The Centre at Overton Park

Texas Tech University

Dec '12

400

⁽¹⁾ The same-community designation for leasing purposes is different than for financial reporting purposes. These communities are considered same-community for 2016/2017 leasing purposes, as the Company managed the leasing process for both the 2015/2016 and 2016/2017 lease cycles. Total same-community beds for leasing purposes is 24,289.

⁽²⁾ These properties are considered new for purposes of leasing, as we did not manage the leasing process for the 2015/2016 lease year.

⁽³⁾ The Retreat at Oxford is considered new for purposes of leasing due to the development of the second phase of the property.

⁽⁴⁾ The Kentucky communities, totaling 4,592 beds, are excluded from the leasing update on pages 10 and 11 as the assignment process does not occur until May.



FIRST QUARTER 2016		24



		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
	FBR Capital Markets & Co.	Patrick Kealey Jr.	(703) 312-9656	pkealey@fbr.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
	JMP Securities	Aaron Hecht	(415) 835-3963	ahecht@jmpsecurities.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 Babin	(215) 553-7816	dbabin@rwbaird.com
	Sandler O'Neill + Partners, L.P.	Alex Goldfarb	(212) 466-7937	agoldfarb@sandleroneill.com
	UBS Securities	Ross Nussbaum	(212) 713-2484	ross.nussbaum@ubs.com



FIRST QUARTER 2016		25



		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.



FIRST QUARTER 2016		26



		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.



FIRST QUARTER 2016		27

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