Education Realty Trust, Inc. - FORM 8-K - EX-99.2 - EXHIBIT 99.2 SECOND QUARTER 2017 SUPPLEMENTAL - July 31, 2017

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EX-99.1 - EXHIBIT 99.1 PRESS RELEASE - JULY 31, 2017 - Education Realty Trust, Inc.a2017-q2edrearningsrelease.htm
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FINANCIAL HIGHLIGHTS

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FINANCIAL HIGHLIGHTS

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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,
 
 
2017
 
2016
 
$ Chg
 
% Chg
 
2017
 
2016
 
$ Chg
 
% Chg
 
Same-community revenue
$
55,574

 
$
54,453

 
$
1,121

 
2.1
 %
 
$
119,066

 
$
117,082

 
$
1,984

 
1.7
 %
 
Total community revenue
70,071

 
61,690

 
8,381

 
13.6
 %
 
150,856

 
131,873

 
18,983

 
14.4
 %
 
Total revenue
74,042

 
65,140

 
8,902

 
13.7
 %
 
159,840

 
138,519

 
21,321

 
15.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-community net operating income
32,688

 
32,555

 
133

 
0.4
 %
 
74,309

 
74,370

 
(61
)
 
(0.1
)%
 
Total community net operating income
39,733

 
35,524

 
4,209

 
11.8
 %
 
91,641

 
80,818

 
10,823

 
13.4
 %
 
Total operating income
8,625

 
9,486

 
(861
)
 
(9.1
)%
 
27,066

 
29,702

 
(2,636
)
 
(8.9
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to EdR
6,060

 
17,655

 
(11,595
)
 
(65.7
)%
 
22,217

 
34,324

 
(12,107
)
 
(35.3
)%
 
Per share - basic
$
0.07

 
$
0.26

 
$
(0.19
)
 
(73.1
)%
 
$
0.29

 
$
0.53

 
$
(0.24
)
 
(45.3
)%
 
Per share - diluted
0.07

 
0.26

 
(0.19
)
 
(73.1
)%
 
0.28

 
0.52

 
(0.24
)
 
(46.2
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funds from operations (FFO)
29,866

 
24,836

 
5,030

 
20.3
 %
 
72,162

 
47,616

 
24,546

 
51.5
 %
 
Per weighted average share/unit (1)
$
0.40

 
$
0.36

 
$
0.04

 
11.1
 %
 
$
0.98

 
$
0.73

 
$
0.25

 
34.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Core funds from operations (Core FFO)
31,042

 
26,417

 
4,625

 
17.5
 %
 
75,060

 
60,363


14,697

 
24.3
 %
 
Per weighted average share/unit (1)
$
0.42

 
$
0.39

 
$
0.03

 
7.7
 %
 
$
1.02

 
$
0.92

 
$
0.10

 
10.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL RATIOS:
 
 
 
 
 
 
 
 
 
 
6/30/2017
 
12/31/2016
 
 
 
 
 
Debt to gross assets
25.8%
 
18.4%
 
 
 
 
 
Net debt to gross assets
25.0%
 
17.4%
 
 
 
 
 
Net debt to enterprise value
21.5%
 
13.5%
 
 
 
 
 
Interest coverage ratio (TTM)
11.4x
 
9.0x
 
 
 
 
 
Net debt to EBITDA - Adjusted (TTM)
2.3x
 
1.7x
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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

1
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BALANCE SHEET

(Amount in thousands, except share and per share data, unaudited)
 
 
 
 
 
 
 
June 30, 2017
 
December 31, 2016
 
 Assets
 
 
 
 
 
 
Collegiate housing properties, net (1)
 
$
2,179,060

 
$
2,108,706

 
 
Assets under development
 
517,011

 
289,942

 
 
Cash and cash equivalents
 
33,496

 
34,475

 
 
Restricted cash
 
8,073

 
7,838

 
 
Other assets
 
65,303

 
65,224

 
 Total assets
 
$
2,802,943

 
$
2,506,185

 
 
 
 
 
 
 
 Liabilities and equity
 
 
 
 
 
 Liabilities:
 
 
 
 
 
 
Mortgage and construction loans, net of unamortized deferred financing costs
 
$
29,751

 
$
62,520

 
 
Unsecured revolving credit facility
 
345,000

 
20,000

 
 
Unsecured term loans, net of unamortized deferred financing costs
 
186,385

 
186,738

 
 
Unsecured senior notes, net of unamortized deferred financing costs
 
248,069

 
247,938

 
 
Accounts payable and accrued expenses
 
162,819

 
127,872

 
 
Deferred revenue
 
12,560

 
20,727

 
 Total liabilities
 
984,584

 
665,795

 
 
 
 
 
 
 
 
 Commitments and contingencies
 
—

 
—

 
 
 
 
 
 
 
 Redeemable noncontrolling interests
 
51,184

 
38,949

 
 
 
 
 
 
 
 
 Equity:
 
 
 
 
 
 EdR stockholders' equity:
 
 
 
 
 
 
Common stock, $0.01 par value per share, 200,000,000 shares authorized, 73,194,924 and 73,075,455 shares issued and outstanding as of June 30, 2017 and December 31, 2016, respectively
 
732

 
731

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

 
—

 
 
Additional paid-in capital
 
1,767,951

 
1,802,852

 
 
Retained earnings
 
—

 
—

 
 
Accumulated other comprehensive loss
 
(2,851
)
 
(3,564
)
 
 Total EdR stockholders' equity
 
1,765,832

 
1,800,019

 
 Noncontrolling interest
 
1,343

 
1,422

 
 Total equity
 
1,767,175

 
1,801,441

 
 Total liabilities and equity
 
$
2,802,943

 
$
2,506,185

 
(1) Amount is net of accumulated depreciation of $343,132 and $315,634, as of June 30, 2017 and December 31, 2016, respectively.

SECOND QUARTER

2
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OPERATING RESULTS

(Amounts in thousands, except per share data, unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended June 30,
 
Six months ended June 30,
 
2017
 
2016
 
$ Change
 
2017
 
2016
 
$ Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
     Collegiate housing leasing revenue
$
70,071

 
$
61,690

 
$
8,381

 
$
150,856

 
$
131,873

 
$
18,983

     Third-party development consulting services
1,156

 
467

 
689

 
2,971

 
950

 
2,021

     Third-party management services
831

 
697

 
134

 
1,776

 
1,591

 
185

     Operating expense reimbursements
1,984

 
2,286

 
(302
)
 
4,237

 
4,105

 
132

     Total revenues
74,042

 
65,140

 
8,902

 
159,840

 
138,519

 
21,321

Operating expenses:
 
 
 
 
 
 
 
 
 
 


     Collegiate housing leasing operations
30,338

 
26,166

 
4,172

 
59,215

 
51,055

 
8,160

     Development and management services
2,775

 
2,728

 
47

 
5,676

 
5,249

 
427

     General and administrative
2,935

 
2,921

 
14

 
6,142

 
5,502

 
640

     Development pursuit, acquisition costs and severance
403

 
158

 
245

 
623

 
686

 
(63
)
     Depreciation and amortization
24,520

 
19,099

 
5,421

 
50,359

 
36,615

 
13,744

     Ground lease expense
2,462

 
2,296

 
166

 
6,022

 
5,605

 
417

     Other operating expense (1)
—

 
—

 
—

 
500

 
—

 
500

     Reimbursable operating expenses
1,984

 
2,286

 
(302
)
 
4,237

 
4,105

 
132

     Total operating expenses
65,417

 
55,654

 
9,763

 
132,774

 
108,817

 
23,957

Operating income
8,625

 
9,486

 
(861
)
 
27,066

 
29,702

 
(2,636
)
Nonoperating (income) expenses:
 
 
 
 
 
 
 
 
 
 


     Interest expense, net of capitalized interest
3,062

 
3,635

 
(573
)
 
6,090

 
8,298

 
(2,208
)
     Amortization of deferred financing costs
358

 
457

 
(99
)
 
779

 
937

 
(158
)
     Interest income
(17
)
 
(200
)
 
183

 
(49
)
 
(274
)
 
225

     Loss on extinguishment of debt
—

 
216

 
(216
)
 
22

 
10,136

 
(10,114
)
Total nonoperating expenses
3,403

 
4,108

 
(705
)
 
6,842

 
19,097

 
(12,255
)
Income before equity in earnings (losses) of unconsolidated entities, income taxes and gain on sale of collegiate housing properties
5,222

 
5,378

 
(156
)
 
20,224

 
10,605

 
9,619

Equity in earnings (losses) of unconsolidated entities
129

 
107

 
22

 
384

 
(137
)
 
521

Income before income taxes and gain on sale of collegiate housing properties
5,351

 
5,485

 
(134
)
 
20,608

 
10,468

 
10,140

Income tax expense (benefit)
353

 
89

 
264

 
(532
)
 
140

 
(672
)
Income before gain on sale of collegiate housing properties
4,998

 
5,396

 
(398
)
 
21,140

 
10,328

 
10,812

Gain on sale of collegiate housing properties
691

 
12,083

 
(11,392
)
 
691

 
23,956

 
(23,265
)
Net income
5,689

 
17,479

 
(11,790
)
 
21,831

 
34,284

 
(12,453
)
Less: Net loss attributable to the noncontrolling interests
(371
)
 
(176
)
 
(195
)
 
(386
)
 
(40
)
 
(346
)
Net income attributable to Education Realty Trust, Inc.
$
6,060

 
$
17,655

 
$
(11,595
)
 
$
22,217

 
$
34,324

 
$
(12,107
)

SECOND QUARTER

3
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OPERATING RESULTS

(Amounts in thousands, except per share data, unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended June 30,
 
Six months ended June 30,
 
2017
 
2016
 
$ Change
 
2017
 
2016
 
$ Change
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
      (Loss) gain on cash flow hedging derivatives
(365
)
 
(1,042
)
 
677

 
713

 
(4,488
)
 
5,201

Comprehensive income attributable to Education Realty Trust, Inc.
$
5,695

 
$
16,613

 
$
(10,918
)
 
$
22,930

 
$
29,836

 
$
(6,906
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings per share information:
 
 
 
 
 
 
 
 
 
 


Net income attributable to Education Realty Trust, Inc. common stockholders per share – basic
$
0.07

 
$
0.26

 
$
(0.19
)
 
$
0.29

 
$
0.53

 
$
(0.24
)
Net income attributable to Education Realty Trust, Inc. common stockholders per share – diluted (2)
$
0.07

 
$
0.26

 
$
(0.19
)
 
$
0.28

 
$
0.52

 
$
(0.24
)
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares of common stock outstanding – basic
73,623

 
68,025

 
5,598

 
73,566

 
65,352

 
8,214

Weighted average shares of common stock outstanding – diluted (3)
73,841

 
68,293

 
5,548

 
73,795

 
65,629

 
8,166

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Represents the change in fair value of contingent consideration liabilities associated with the acquisition of Urbane.
(2) The numerator for earnings per share - diluted also includes $0.8 million and $1.2 million of accretion of redeemable noncontrolling interests for the three and six months ended June 30, 2017, respectively.
(3) Weighted average shares of common stock outstanding - diluted assumes the conversion of outstanding redeemable Operating Partnership Units and University Towers Operating Partnership Units and shares issuable upon settlement of the forward equity agreements.

SECOND QUARTER

4
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FUNDS FROM OPERATIONS


(Amounts in thousands, except per share data, unaudited)
Three months ended June 30,
 
Six months ended June 30,
 
 
2017
 
2016
 
$ Change
 
2017
 
2016
 
$ Change
Net income attributable to EdR
$
6,060

 
$
17,655

 
$
(11,595
)
 
$
22,217

 
$
34,324

 
$
(12,107
)
 
Gain on sale of collegiate housing assets
(691
)
 
(12,083
)
 
11,392

 
(691
)
 
(23,956
)
 
23,265

 
Real estate related depreciation and amortization
24,050

 
18,695

 
5,355

 
49,405

 
35,808

 
13,597

 
Equity portion of real estate depreciation and amortization on equity investees
671

 
657

 
14

 
1,347

 
1,323

 
24

 
Noncontrolling interests
(224
)
 
(88
)
 
(136
)
 
(116
)
 
117

 
(233
)
Funds from operations ("FFO") available to stockholders and unitholders
29,866

 
24,836

 
5,030

 
72,162

 
47,616

 
24,546

 
percent change
 
 
 
 
20.3
 %
 
 
 
 
 
51.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
FFO adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
Loss on extinguishment of debt
—

 
216

 
(216
)
 
22

 
10,136

 
(10,114
)
 
Acquisition costs
2

 
178

 
(176
)
 
27

 
238

 
(211
)
 
Change in fair value of contingent consideration liability (1)
—

 
—

 
—

 
500

 
—

 
500

 
Straight-line adjustment for ground leases (2)
1,174

 
1,187

 
(13
)
 
2,349

 
2,373

 
(24
)
FFO adjustments
1,176

 
1,581

 
(405
)
 
2,898

 
12,747

 
(9,849
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Core funds from operations ("Core FFO") available to stockholders and unitholders
$
31,042

 
$
26,417

 
$
4,625

 
$
75,060

 
$
60,363

 
$
14,697

 
percent change
 
 
 
 
17.5
 %
 
 
 
 
 
24.3
 %
 
 
 
 
 
 


 
 
 
 
 
 
Earnings per share - diluted (3)
$
0.07

 
$
0.26

 
$
(0.19
)
 
$
0.28

 
$
0.52

 
$
(0.24
)
 
percent change
 
 
 
 
(73.08
)%
 
 
 
 
 
(46.2
)%
FFO per weighted average share/unit (4)
$
0.40

 
$
0.36

 
$
0.04

 
$
0.98

 
$
0.73

 
$
0.25

 
percent change
 
 
 
 
11.1
 %
 
 
 
 
 
34.2
 %
Core FFO per weighted average share/unit (4)
$
0.42

 
$
0.39

 
$
0.03

 
$
1.02

 
$
0.92

 
$
0.10

 
percent change
 
 
 
 
7.7
 %
 
 
 
 
 
10.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares/units (4)
73,841

 
68,293

 
5,548

 
73,795

 
65,629

 
8,166

 
percent change
 
 
 
 
8.1
 %
 
 
 
 
 
12.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 

(1) This represents the fair value adjustment for Urbane's contingent consideration.
(2)  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.
(3) The numerator for earnings per share - diluted also includes $0.8 million and $1.2 million of accretion of redeemable noncontrolling interests for the three and six months ended June 30, 2017, respectively.
(4)  FFO and Core FFO per weighted average share/unit were computed using the weighted average of all shares and partnership units outstanding, regardless of their dilutive impact, and the dilutive impact of the ATM Forward.

SECOND QUARTER

5
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COMMUNITY OPERATING RESULTS


(Amounts in thousands, unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2017
 
2016
 
$ Change
 
% Change
 
2017
 
2016
 
$ Change
 
% Change
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-communities(1)
$
55,574

 
$
54,453

 
$
1,121

 
2.1
%
 
$
119,066

 
$
117,082

 
$
1,984

 
1.7
 %
 
New-communities(2)
12,526

 
2,856

 
9,670

 
NM

 
26,173

 
4,064

 
22,109

 
NM

 
Other-communities(3)
1,662

 
1,951

 
(289
)
 
NM

 
4,683

 
5,151

 
(468
)
 
NM

 
Sold-communities(4)
309

 
2,430

 
(2,121
)
 
NM

 
934

 
5,576

 
(4,642
)
 
NM

Total revenues
70,071

 
61,690

 
8,381

 
13.6
%
 
150,856

 
131,873

 
18,983

 
14.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses (5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-communities(1)
22,886

 
21,898

 
988

 
4.5
%
 
44,757

 
42,712

 
2,045

 
4.8
 %
 
New-communities(2)
5,741

 
1,530

 
4,211

 
NM

 
10,817

 
2,328

 
8,489

 
NM

 
Other-communities(3)
1,336

 
1,382

 
(46
)
 
NM

 
2,810

 
2,909

 
(99
)
 
NM

 
Sold-communities(4)
375

 
1,356

 
(981
)
 
NM

 
831

 
3,106

 
(2,275
)
 
NM

Total operating expenses
30,338

 
26,166

 
4,172

 
15.9
%
 
59,215

 
51,055

 
8,160

 
16.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net operating income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-communities(1)
32,688

 
32,555

 
133

 
0.4
%
 
74,309

 
74,370

 
(61
)
 
(0.1
)%
 
New-communities (2)
6,785

 
1,326

 
5,459

 
NM

 
15,356

 
1,736

 
13,620

 
NM

 
Other-communities(3)
326

 
569

 
(243
)
 
NM

 
1,873

 
2,242

 
(369
)
 
NM

 
Sold-communities(4)
(66
)
 
1,074

 
(1,140
)
 
NM

 
103

 
2,470

 
(2,367
)
 
NM

Total net operating income
$
39,733

 
$
35,524

 
$
4,209

 
11.8
%
 
$
91,641

 
$
80,818

 
$
10,823

 
13.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Same-communities are defined as those communities that have been open and operating for the whole time in the current and prior periods and are not conducting substantial development or redevelopment activities or have other significant changes in design beds. See page 26 of this supplement for a listing of same-communities.
(2) See page 27 of this supplement for a listing of which communities are categorized as new-communities.
(3) Effective January 1, 2017, the following communities moved from same-community to other-community: 1) Players Club serving Florida State University due to the demolition and redevelopment of the property and 2) University Towers, serving North Carolina State University. As a result of the university implementing a new freshman live-on requirement this fall, we anticipate changing the way the community will be leased and operated in 2017 making year over year results incomparable.
(4) Represents operating results from communities sold in 2016 and 2017.
(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

6
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SAME-COMMUNITY EXPENSES BY CATEGORY

(Amounts in thousands, except bed and per-bed data, unaudited)
 
Three months ended June 30, 2017
 
Three months ended June 30, 2016
 
 
 
 
 
Amount
 
Per Bed
 
% of Total Operating Expenses
 
Amount
 
Per Bed
 
% of Total Operating Expenses
 
$ Change
 
% Change
Utilities(1)
$
6,518

 
$
249

 
28
%
 
$
6,521

 
$
249

 
30
%
 
$
(3
)
 
—
 %
On-Site Payroll
3,993

 
153

 
17
%
 
3,952

 
151

 
18
%
 
41

 
1.0
 %
General & Administrative(2)
3,039

 
116

 
13
%
 
3,215

 
123

 
15
%
 
(176
)
 
(5.5
)%
Maintenance & Repairs(3)
2,235

 
85

 
10
%
 
1,994

 
76

 
9
%
 
241

 
12.1
 %
Marketing
810

 
31

 
4
%
 
796

 
30

 
4
%
 
14

 
1.8
 %
Total Direct Operating Expenses
$
16,595

 
$
634

 
72
%
 
$
16,478

 
$
629

 
76
%
 
$
117

 
0.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Taxes
5,781

 
221

 
26
%
 
4,855

 
186

 
22
%
 
926

 
19.1
 %
Insurance
510

 
19

 
2
%
 
565

 
22

 
2
%
 
(55
)
 
(9.7
)%
Total Fixed Operating Expenses
$
6,291

 
$
240

 
28
%
 
$
5,420

 
$
208

 
24
%
 
$
871

 
16.1
 %
Total Property Operating Expenses
$
22,886

 
$
874

 
100
%
 
$
21,898

 
$
837

 
100
%
 
$
988

 
4.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2017
 
Six months ended June 30, 2016
 
 
 
 
 
Amount
 
Per Bed
 
% of Total Operating Expenses
 
Amount
 
Per Bed
 
% of Total Operating Expenses
 
$ Change
 
% Change
Utilities(1)
$
12,905

 
$
493

 
29
%
 
$
12,710

 
$
486

 
30
%
 
$
195

 
1.5
 %
On-Site Payroll
7,917

 
303

 
18
%
 
7,962

 
304

 
19
%
 
(45
)
 
(0.6
)%
General & Administrative(2)
6,220

 
238

 
14
%
 
6,234

 
238

 
15
%
 
(14
)
 
(0.2
)%
Maintenance & Repairs(3)
3,856

 
147

 
9
%
 
3,426

 
131

 
8
%
 
430

 
12.6
 %
Marketing
1,637

 
63

 
4
%
 
1,742

 
67

 
4
%
 
(105
)
 
(6.0
)%
Total Direct Operating Expenses
$
32,535

 
$
1,244

 
73
%
 
$
32,074

 
$
1,226

 
75
%
 
$
461

 
1.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Taxes
11,202

 
428

 
25
%
 
9,505

 
363

 
22
%
 
1,697

 
17.9
 %
Insurance
1,020

 
39

 
2
%
 
1,133

 
43

 
3
%
 
(113
)
 
(10.0
)%
Total Fixed Operating Expenses
$
12,222

 
$
467

 
27
%
 
$
10,638

 
$
406

 
25
%
 
$
1,584

 
14.9
 %
Total Property Operating Expenses
$
44,757

 
$
1,711

 
100
%
 
$
42,712

 
$
1,632

 
100
%
 
$
2,045

 
4.8
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-community beds
26,167

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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.

SECOND QUARTER

7
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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, 2016
 
September 30, 2016
 
December 31, 2016
 
March 31, 2017
 
June 30, 2017
 
2017 Same Communities
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
54,453

 
$
51,911

 
$
64,900

 
$
63,492

 
$
55,574

 
$
235,877

 
Operating Expenses
 
21,898

 
26,562

 
22,181

 
21,871

 
22,886

 
93,500

 
Net Operating Income
 
$
32,555

 
$
25,349

 
$
42,719

 
$
41,621

 
$
32,688

 
$
142,377

 
Margin
 
60
%
 
49
%
 
66
%
 
66
%
 
59
 %
 
60
%
 
Beds
 
78,501

 
78,501

 
78,501

 
78,501

 
78,501

 
314,004

 
Occupancy(1)
 
83.2
%
 
88.7
%
 
96.8
%
 
95.3
%
 
82.3
 %
 
90.8
%
 
Net Apartment Rent per Occupied Bed
 
$
773

 
$
671

 
$
810

 
$
800

 
$
799

 
$
771

 
Other Income per Occupied Bed
 
61

 
75

 
44

 
48

 
61

 
57

 
Total Revenue per Occupied Bed
 
$
834

 
$
746

 
$
854

 
$
848

 
$
860

 
$
828

 
Operating Expense per Available Bed
 
$
279

 
$
338

 
$
283

 
$
279

 
$
292

 
$
298

 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017 New Communities
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
2,856

 
$
7,154

 
$
11,795

 
$
13,647

 
$
12,526

 
$
45,122

 
Operating Expenses
 
1,530

 
3,751

 
3,673

 
5,076

 
5,741

 
18,241

 
Net Operating Income
 
$
1,326

 
$
3,403

 
$
8,122

 
$
8,571

 
$
6,785

 
$
26,881

 
Margin
 
46
%
 
48
%
 
69
%
 
63
%
 
54
 %
 
60
%
 
Beds
 
4,658

 
11,039

 
14,175

 
17,833

 
18,138

 
61,185

 
Occupancy(1)
 
78.5
%
 
86.9
%
 
89.6
%
 
89.2
%
 
77.5
 %
 
85.4
%
 
Net Apartment Rent per Occupied Bed
 
$
726

 
$
663

 
$
871

 
$
803

 
$
820

 
$
798

 
Other Income per Occupied Bed
 
56

 
83

 
58

 
55

 
71

 
65

 
Total Revenue per Occupied Bed
 
$
782

 
$
746

 
$
929

 
$
858

 
$
891

 
$
863

 
Operating Expense per Available Bed
 
$
329

 
$
340

 
$
259

 
$
285

 
$
317

 
$
298

 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017 Other Communities(2)
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
1,951

 
$
2,219

 
$
3,090

 
$
3,021

 
$
1,662

 
$
9,992

 
Operating Expenses
 
1,382

 
1,614

 
1,508

 
1,475

 
1,336

 
5,933

 
Net Operating Income
 
$
569

 
$
605

 
$
1,582

 
$
1,546

 
$
326

 
$
4,059

 
Margin
 
29
%
 
27
%
 
51
%
 
51
%
 
20
 %
 
41
%
 
Beds
 
3,675

 
3,675

 
3,675

 
3,675

 
3,339

 
14,364

 
Occupancy(1)
 
49.7
%
 
69.1
%
 
87.8
%
 
87.2
%
 
42.3
 %
 
72.3
%
 
Net Apartment Rent per Occupied Bed
 
$
846

 
$
692

 
$
903

 
$
883

 
$
899

 
$
845

 
Other Income per Occupied Bed
 
223

 
182

 
54

 
59

 
278

 
117

 
Total Revenue per Occupied Bed
 
$
1,069

 
$
874

 
$
957

 
$
942

 
$
1,177

 
$
962

 
Operating Expense per Available Bed
 
$
376

 
$
439

 
$
410

 
$
401

 
$
400

 
$
413

 
 
 
 
 
 
 
 
 
 
 
 
 
 

SECOND QUARTER

8
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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, 2016
 
September 30, 2016
 
December 31, 2016
 
March 31, 2017
 
June 30, 2017
 
2017 Sold Communities
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
2,430

 
$
593

 
$
652

 
$
625

 
$
309

 
$
2,179

 
Operating Expenses
 
1,356

 
584

 
449

 
455

 
375

 
1,863

 
Net Operating Income (Loss)
 
$
1,074

 
$
9

 
$
203

 
$
170

 
$
(66
)
 
$
316

 
Margin
 
44
%
 
2
%
 
31
%
 
27
%
 
(21
)%
 
15
%
 
Beds
 
5,868

 
1,836

 
1,836

 
1,836

 
1,224

 
6,732

 
Occupancy(1)
 
88.8
%
 
61.4
%
 
61.4
%
 
61.4
%
 
63.1
 %
 
61.7
%
 
Net Apartment Rent per Occupied Bed
 
$
437

 
$
472

 
$
563

 
$
530

 
$
372

 
$
494

 
Other Income per Occupied Bed
 
30

 
53

 
15

 
24

 
27

 
30

 
Total Revenue per Occupied Bed
 
$
467

 
$
525

 
$
578

 
$
554

 
$
399

 
$
524

 
Operating Expense per Available Bed
 
$
231

 
$
318

 
$
244

 
$
248

 
$
307

 
$
277

 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017 Total Communities
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
61,690

 
$
61,877

 
$
80,437

 
$
80,785

 
$
70,071

 
$
293,170

 
Operating Expenses
 
26,166

 
32,511

 
27,811

 
28,877

 
30,338

 
119,537

 
Net Operating Income
 
$
35,524

 
$
29,366

 
$
52,626

 
$
51,908

 
$
39,733

 
$
173,633

 
Margin
 
58
%
 
47
%
 
65
%
 
64
%
 
57
 %
 
59
%
 
Beds
 
92,702

 
95,051

 
98,187

 
101,845

 
101,202

 
396,285

 
Occupancy(1)
 
82.0
%
 
87.2
%
 
94.8
%
 
93.3
%
 
79.9
 %
 
88.8
%
 
Net Apartment Rent per Occupied Bed
 
$
749

 
$
668

 
$
819

 
$
800

 
$
800

 
$
774

 
Other Income per Occupied Bed
 
63

 
79

 
46

 
50

 
66

 
59

 
Total Revenue per Occupied Bed
 
$
812

 
$
747

 
$
865

 
$
850

 
$
866

 
$
833

 
Operating Expense per Available Bed
 
$
282

 
$
342

 
$
283

 
$
284

 
$
300

 
$
302

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Represents the weighted average physical occupancy for the period presented.
(2) Effective January 1, 2017, the following communities moved from same-community to other-community: 1) Players Club serving Florida State University due to the demolition and redevelopment of the property and 2) University Towers, serving North Carolina State University, as we previously anticipated changing the way the community will be leased and operated in 2017.

SECOND QUARTER

9
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PRELEASING SUMMARY



 
 
 
 
 
 
 
Preleasing at July 25,
 
 
 
 
 
Design Beds
 
% of NOI
 
2016 Opening Occupancy
 
2017
 
2016
 
Preleasing Ahead/(Behind)
 
Projected Rate Growth(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-Communities - by Tier
 
 
 
 
 
 
 
 
 
 
 
 
 
     Prior Year Occupancy Below 90% (Tier 1)
4,046

 
12.4
%
 
81.2
%
 
79.1
%
 
75.6
%
 
3.5
 %
 
(2.3
)%
     Prior Year Occupancy 90% to 96.9% (Tier 2)
3,697

 
13.9
%
 
94.0
%
 
88.1
%
 
88.4
%
 
(0.3
)%
 
1.7
 %
     Prior Year Occupancy 97% and Above (Tier 3)
16,911

 
73.7
%
 
99.7
%
 
96.9
%
 
98.1
%
 
(1.2
)%
 
3.8
 %
Total Same-Communities (2)
24,654

 
100.0
%
 
95.8
%
 
92.7
%
 
93.0
%
 
(0.3
)%
 
3.0
 %
Total Other-Communities (3)
889

 
 
 
 
 
100.0
%
 
88.1
%
 
11.9
 %
 
 
Total New-Communities (4)
2,954

 
 
 
 
 
74.0
%
 
 
 
 
 
 
Total Communities
28,497

 
 
 
 
 
90.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Projected 2017-2018 Opening Revenue:
 
 
The same-community portfolio is projected to open the 2017-2018 lease-term with occupancy flat and a 2.5% to 3.5% increase in rates, resulting in rental revenue growth in the range of 2.5% to 3.5%.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTE: The leasing velocity in the above preleasing summary by tier does not include 6,850 same and new-community beds at the University of Kentucky, 656 new-community beds at Boise State University and 417 new-community beds at Northern Michigan University, since each university's assignment process has not yet occurred. The University of Kentucky beds are currently 98% applied for this fall compared to 106% in the prior year. The beds at Boise State and Northern Michigan University are currently 100% and 185% applied for the fall, respectively. Players Club is not included, as the community is being redeveloped for 2018 delivery and is not leasing for the 2017-2018 lease-term.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) The projected rate growth represents the midpoint of the range for the same-community leasing portfolio, including the same-community beds at Kentucky.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2) 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 2017/2018 leasing cycle. Design beds for Same-Communities included in the 2017 Preleasing Summary above include the following design beds: (1) total same-community design beds on page 26 of 26,167 less 4,592 beds at the University of Kentucky plus (2) 3,079 design beds on communities that are considered same for leasing purposes (see note 1 on page 27).
 
(3) Other-communities includes University Towers, serving North Carolina State University.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(4) 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 include the following: (1) our 2016 acquisitions of Pura Vida Place (100 beds), Carriage House (94 beds) and Urbane (311 beds), plus (2) beds at our 2017 development deliveries including The Local: Downtown (304 beds) and SkyVue (824 beds), plus (3) our 2017 acquisitions of Retreat at Corvallis (1,016 beds) and 319 Bragg (305 beds).

SECOND QUARTER

10
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SAME-COMMUNITY PRELEASING BY REGION AND DISTANCE


 
 
 
 
 
 
 
Preleasing at July 25,
 
 
 
 
 
Design Beds
 
% of NOI
 
2016 Opening Occupancy
 
2017
 
2016
 
Preleasing Ahead/(Behind)
 
Projected Rate Growth(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-Communities - by Region (2)
 
 
 
 
 
 
 
 
 
 
 
 
 
Mid-Atlantic
5,758

 
28.7
%
 
98.1
%
 
95.9
%
 
97.4
%

(1.5
)%
 
4.8
 %
Midwest
1,664

 
3.6
%
 
82.7
%
 
81.7
%
 
76.3
%

5.4
 %
 
(1.8
)%
North
4,243

 
16.2
%
 
95.3
%
 
90.9
%
 
90.4
%

0.5
 %
 
0.4
 %
South Central
5,250

 
19.2
%
 
93.0
%
 
87.3
%
 
89.7
%

(2.4
)%
 
3.0
 %
Southeast
4,001

 
13.4
%
 
99.9
%
 
97.1
%
 
98.7
%

(1.6
)%
 
2.8
 %
West
3,738

 
18.9
%
 
98.4
%
 
97.3
%
 
94.7
%

2.6
 %
 
4.0
 %
Total Same-Communities
24,654

 
100.0
%
 
95.8
%
 
92.7
%
 
93.0
%

(0.3
)%
 
3.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-Communities - by Distance from Campus
 
 
 
 
 
 
 
 
 
 
 
 
 
0-0.2 miles
14,324

 
66.2
%
 
98.4
%
 
93.7
%
 
96.4
%

(2.7
)%
 
3.6
 %
0.21-0.49 miles
2,720

 
10.3
%
 
90.8
%
 
85.4
%
 
85.8
%

(0.4
)%
 
(1.3
)%
0.5-0.99 miles
2,041

 
7.6
%
 
87.2
%
 
90.0
%
 
81.4
%

8.6
 %
 
2.3
 %
1.0-1.99 miles
3,709

 
11.4
%
 
92.5
%
 
92.8
%
 
90.0
%

2.8
 %
 
2.5
 %
2.0 & > miles
1,860

 
4.5
%
 
99.6
%
 
97.5
%
 
95.6
%

1.9
 %
 
2.0
 %
Total Same-Communities
24,654

 
100.0
%
 
95.8
%
 
92.7
%
 
93.0
%

(0.3
)%
 
3.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTE: The leasing velocity in the above leasing update does not include the University of Kentucky since the university's assignment process has not yet occurred. Players Club is not included, as the community is being redeveloped for 2018 delivery and is not leasing for the 2017-2018 lease-term.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) The projected rate growth represents the midpoint of the range for the same-community leasing portfolio, including the same-community beds at Kentucky.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2) See definition of regions on page 29.


SECOND QUARTER

11
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TOP EdR MARKETS AND STATES BY REVENUE

q22017suppl_chart-33938.jpg
*The data above is based on revenue for the twelve months ended June 30, 2017 and excludes properties that were sold during the period.
(1) All revenue at the University of Kentucky is from ONE PlanSM on-campus collegiate housing communities.

SECOND QUARTER

12
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TOP EdR MARKETS AND STATES BY REVENUE


q22017suppl_chart-36421.jpg

*The data above is based on revenue for the twelve months ended June 30, 2017 and excludes properties that were sold during the period.


SECOND QUARTER

13
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NEW SUPPLY AND ENROLLMENT - EdR MARKETS

EdR Market Supply, Enrollment and Revenue Growth                            

 
 
 
 
 
 
 
 
 
 
 
 
 
EdR Markets:
 
2013
 
2014
 
2015
 
2016
 
2017 Est (1)
 
2018 Est (2)
New supply as % of enrollment
 
2.2
%
 
2.2
%
 
2.0
%
 
1.8
 %
 
2.1
%
 
1.6
%
Enrollment growth
 
1.3
%
 
1.4
%
 
1.5
%
 
1.5
 %
 
1.4
%
 
1.4
%
 
 
0.9
%
 
0.8
%
 
0.5
%
 
0.3
 %
 
0.7
%
 
0.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-community:
 
 
 
 
 
 
 
 
 
 
 
 
Occupancy increase (decrease)
 
3.0
%
 
2.0
%
 
0.4
%
 
(1.1
)%
 
—
%
 
 
Rate increase
 
2.0
%
 
2.0
%
 
3.4
%
 
3.4
 %
 
3.0
%
 
 
Total leasing revenue growth
 
5.0
%
 
4.0
%
 
3.8
%
 
2.3
 %
 
3.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Data includes the existing portfolio plus 2017 developments. The estimated enrollment growth is based on the 3-year enrollment CAGR through 2016 for the included communities. Leasing revenue growth for 2017 represents the midpoint of current projections.
(2) Data includes the existing portfolio plus 2017 and 2018 developments. The estimated enrollment growth is based on the 3-year enrollment CAGR through 2016 for the included communities.



















SECOND QUARTER

14
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OWNED COMMUNITY PROJECTED 2018 NEW SUPPLY AND DEMAND INFORMATION

 
 
 
 
 
 
Owned Community Projected 2018 New Supply and Demand Information by Region
 
 
 
 
 
 
 
 
Region (2)
% of Owned Beds
Pro Forma EdR NOI% (1)
Enrollment Growth 3 Year CAGR - Universities Served
2018 New Supply %
Variance
West
15%
15%
1.6%
2.3%
(0.7)%
Mid Atlantic
19%
23%
1.5%
2.1%
(0.6)%
North
17%
16%
0.2%
1.3%
(1.1)%
South Central
30%
30%
1.7%
0.9%
0.8%
Southeast
12%
10%
1.1%
2.0%
(0.9)%
Midwest
7%
6%
2.0%
1.5%
0.5%
     Total
100%
100%
1.4%
1.6%
(0.2)%
 
 
 
 
 
 
 
 
 
 
 
 

Projected 2018 New Supply Sorted by Percentage Increase
 
University Markets with >5% Increase in 2018 Supply
 
 
 
 
 
 
 
 
New Supply Growth
University Markets
EdR Beds
Pro Forma
EdR NOI %(1)
 
University
New Supply Increase
Pro Forma EdR NOI %(1)
0%
43%
47%
50%
 
Arizona State University - Phoenix
5.3%
5%
0.1% to 1.0%
—%
—%
—%
 
Florida State University/Florida A&M
5.8%
2%
1.0% - 3.0%
33%
26%
30%
 
Northern Michigan University
6.4%
1%
3.0% - 5.0%
15%
13%
10%
 
University of Mississippi
6.3%
2%
> 5.0%
9%
14%
10%
 
 
 
10%
     Total
100%
100%
100%
 
 
 

 
 
 
 
 
 
 
 
NOTE: Schedule represents all markets served by EdR communities and includes the 2017 acquisitions and developments and all announced 2018 developments. Data was obtained from the National Center for Education Statistics, AXIOMetrics and local market data.

 
 
 
 
 
 
 
 
(1) NOI is based on 2017 forecast net operating income with proforma adjustments for 2017 acquisitions and developments that have been operating for less than 12 months.

(2) See definition of regions on page 29.

 
 
 
 
 
 
 
 

SECOND QUARTER

15
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OWNED DEVELOPMENT SUMMARY


(Amounts in thousands, except bed counts)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Development Cost Funded by EdR's Balance Sheet (Excludes Partner Contribution)(2)
 
 
 
Active Projects
Project Type
EdR's Ownership Percentage
Bed Count
Estimated Start Date
Anticipated Completion Date
Total Project Development Cost
 
EdR's Economic Ownership Cost(1)
 
 
EdR's Remaining Cost to be Funded
 
University of Kentucky - University Flats
ONE Plan (3)
100%
771

In progress
Summer 2017
$
74,000

 
$
74,000

 
$
74,000

 
$
3,800

 
Boise State University
ONE Plan (3)
100%
656

In progress
Summer 2017
39,800

 
39,800

 
39,800

 
6,900

 
University of Kentucky - Lewis Hall
ONE Plan (3)
100%
346

In progress
Summer 2017
26,900

 
26,900

 
26,900

 
—

 
Michigan State University - SkyVue
Joint Venture
90%
824

In progress
Summer 2017
89,900

 
80,900

 
87,700

 
10,900

 
Texas State University - The Local: Downtown
Joint Venture
80%
304

In progress
Summer 2017
29,600

 
23,700

 
28,100

 
5,500

 
Northern Michigan University - The Woods(4)
ONE Plan (3)
100%
800

In progress
Summer / Dec 2017
50,300

 
50,300

 
50,300

 
19,700

 
            Total - 2017 Deliveries
 
 
3,701

 
 
$
310,500

 
$
295,600

 
$
306,800

 
$
46,800

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oklahoma State University - Avid Square
Joint Venture
70%
475

In progress
Summer 2018
$
47,200

 
$
33,000

 
$
43,700

 
$
16,200

 
University of Pittsburgh
Joint Venture
80%
723

In progress
Summer 2018
106,100

 
84,900

 
100,300

 
74,200

 
Florida State University - Players Club redevelopment
Wholly Owned
100%
592

In progress
Summer 2018
38,000

 
38,000

 
38,000

 
36,500

 
Northern Michigan University - The Woods
ONE Plan (3)
100%
400

Summer 2017
Summer 2018
29,000

 
29,000

 
29,000

 
29,000

 
University of Minnesota - Hub at Minneapolis
Joint Venture
51%
707

In progress
Summer 2018
97,900

 
49,900

 
83,500

 
71,000

 
Arizona State University - Union at Tempe
Joint Venture
90%
857

In progress
Summer 2018
164,900

 
148,400

 
159,100

 
117,600

 
Cornell University - Maplewood
ONE Plan (3)
100%
872

In progress
Summer 2018
86,000

 
86,000

 
86,000

 
79,300

 
Colorado State University - Union on Plum
Joint Venture
70%
229

In progress
Summer 2018
28,200

 
19,700

 
25,700

 
21,100

 
Iowa State University - Union on Lincoln Way
Joint Venture
70%
537

In progress
Summer 2018
51,900

 
36,300

 
47,300

 
39,100

 
            Total - 2018 Deliveries
 
 
5,392

 
 
$
649,200

 
$
525,200

 
$
612,600

 
$
484,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
University of Hawai'i - Hale Mahana
Joint Venture
90%
599

In progress
Fall 2018 or 2019
$
109,600

 
$
98,600

 
$
106,300

 
$
78,000

 
            Total - 2019 Deliveries
 
 
599

 
 
$
109,600

 
$
98,600

 
$
106,300

 
$
78,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Active Projects
 
 
9,692

 
 
$
1,069,300

 
$
919,400

 
$
1,025,700

 
$
608,800

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recently Awarded
Project Type
Anticipated Completion Date
 
 
 
 
 
 
 
 
 
 
Lehigh University
ONE Plan (3)
Fall 2019
 
 
 
 
 
 
 
 
 
Mississippi State University
Possible ONE Plan
Fall 2019
 
 
 
 
 
 
 
 
 
Cornell University - East Hill Village
ONE Plan (3)
Fall 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See notes on next page.
 
 
 
 
 
 
 
 
 
 
 
 

SECOND QUARTER

16
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OWNED DEVELOPMENT SUMMARY


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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) Represents total project cost multiplied by EdR's ownership percentage, which is reflective of EdR's economic interest in operating results.
 
(2) For developments that are consolidated in EdR's financials but less than 100% owned, 100% of the developments costs and debt related to the development is included in EdR's balance sheet. As such, EdR's funding requirement and impact on leverage is equal to total project cost less equity contributed by our joint venture partner.
 
(3) 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.
 
(4) The first phase of the project consists of 417 beds and is anticipated to be completed in August 2017.


SECOND QUARTER

17
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CAPITAL ALLOCATION - LONG TERM FUNDING PLAN

(Amounts in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sources and Uses of Capital for All Announced Transactions
 
 
 
 
 
 
 
 
 
 
 
Estimated Capital Uses:
 
 
 
 
 
 
 
 
 
 
 
Total Project Development Cost(2)
 
Acquisition or Development Costs funded by EdR Balance Sheet (Excludes Partner Contribution)(2)
 
Less: Costs Incurred to Date(2)
 
Remaining Capital Needs(2)
 
2017 Announced Acquisitions(1)
 
$
16

 
$
16

 
$
—

 
$
16

 
2017 Development Deliveries
 
311

 
307

 
260

 
47

 
2018 Development Deliveries
 
649

 
613

 
129

 
484

 
2019 Development Deliveries
 
109

 
106

 
28

 
78

 
 
 
$
1,085

 
$
1,042

 
$
417

 
$
625

 
 
 
 
 
 
 
 
 
 
 
Estimated Capital Sources:
 
 
 
 
 
 
 
 
 
 
 
 
 
2017
 
Thereafter
 
Capital Sources
 
Cash on Hand at June 30, 2017
 
 
 
$
—

 
$
33

 
$
33

 
Equity Proceeds Available from ATM Forward Sales(3)
 
 
 
290

 
15

 
305

 
Additional Debt, Including Draws on Revolving Credit Facility(4)
 
 
 
—

 
287

 
287

 
 
 
 
 
$
290

 
$
335

 
$
625

 
 
 
 
 
 
 
 
 
 
 
Debt to Gross Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30, 2017
 
Pro Forma for Funding Needs Through December 31, 2017(5)
 
Pro Forma Assuming All Funding Completed(6)
 
Debt to gross assets
 
 
 
26%
 
24%
 
29%
 
 
 
 
 
 
 
 
 
 
 
NOTE: This analysis demonstrates that EdR could fund all announced acquisitions and developments as of June 30, 2017 and our debt to gross assets is still less than 30%.

(1) Represents the second closing of Urbane which will close in September 2017.
(2) Represents the share of development cost that is funded by EdR's balance sheet, which excludes any partner contributions - see page 16 for details.
(3) Represents available proceeds from completed by unsettled forward sales through June 2017 under the ATM. The Company has the option of settling 6.9 million of the forward sold shares at any time prior to December 31, 2017. The remaining completed forward sales and any additional sales under the current authorization can be settled at the Company's option through December 2018.
(4) The balance on the revolving credit facility as of June 30, 2017 was $345.0 million.
(5) Represents pro forma June 30, 2017 debt to gross assets including the impact of funding only the anticipated capital needed in 2017, in the manner shown in the estimated capital sources table above for 2017.
(6) Represents pro forma December 31, 2017 debt to gross assets as if all announced acquisitions and developments were 100% funded as of June 30, 2017 in the manner shown in the estimated capital sources table above.

SECOND QUARTER

18
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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 Six Months Ended
June 30, 2017 (1)
Remaining Fees to Earn
 
East Stroudsburg University - Pennsylvania Ph II
488

In progress
Summer 2017
$
45,349

$
1,374

$
338

$
892

$
144

 
Texas A&M - Commerce
490

In progress
Summer 2017
29,925

1,260

210

872

178

 
Shepherd University
298

In progress
Summer 2017
22,385

1,025

395

582

48

 
     Total
1,276



$
97,659

$
3,659

$
943

$
2,346

$
370

 
 
 
 
 
 
 
 
 
 
 
Recently Awarded
Anticipated Completion Date
 
 
 
 
 
 
 
University of South Florida - St. Petersburg
Fall 2019 or 2020
 
 
 
 
 
 
 
Thomas More College
Fall 2019
 
 
 
 
 
 
 
 
 
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. During the six months ended June 30, 2017, cost savings of $0.6 million were also recognized on the Bowles Hall redevelopment, which opened in the fall of 2016.
 



SECOND QUARTER

19
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CAPITAL STRUCTURE

 
 
 
 
 
 
 
 
 
 
as of June 30, 2017
 
 
 
 
 
Principal Outstanding
Weighted Average Interest Rate
Average Term to Maturity (in years)
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Debt to Gross Assets
 
 
 
 
 
 
Debt(1)
$
812,272

 
 
 
Variable Rate - Construction Debt
$
29,772

2.8
%
0.3

 
Gross Assets(2)
3,146,075

 
 
 
Fixed Rate - 5 Yr. Unsecured Term Loan(5)
65,000

2.9
%
4.6

 
Debt to Gross Assets
25.8
%
 
 
 
Fixed Rate - 7 Yr. Unsecured Term Loan(5)
122,500

3.5
%
3.5

 
 
 
 
 
 
Fixed Rate - Unsecured Senior Notes
250,000

4.6
%
7.4

 
Net Debt to Gross Assets
 
 
 
 
Variable Rate - Unsecured Revolving Credit Facility
345,000

2.5
%
1.4

 
     Net Debt
$
778,776

 
 
 
Debt(1) / Weighted Average
812,272

3.3
%
3.8

 
Gross Assets(3)
3,112,579

 
 
 
Less: Cash
33,496

 
 
 
Net Debt to Gross Assets
25.0
%
 
 
 
Net Debt
$
778,776

 
 
 
 
 
 
 
 
 

 
 
 
Net Debt to Enterprise Value
 
 
 
 
 
 
 
 
 
     Net Debt
$
778,776

 
 
 
Interest Coverage (TTM)(6)
11.4x
 
 
 
     Market Equity (4)
2,844,934

 

 
Net Debt to EBITDA - Adjusted (TTM)(7)
2.3x
 
 
 
Enterprise Value
$
3,623,710

 

 
Variable Rate Debt to Total Debt
46.1%
 
 
 
 
 
 

 
 
 
 
 
 
Net Debt to Enterprise Value
21.5
%
 
 
 
Undrawn Forward Equity Proceeds(8)
$
304,519

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Excludes unamortized deferred financing costs of $3.1 million.
(2) Excludes accumulated depreciation of $343.1 million.
(3) Excludes accumulated depreciation of $343.1 million and cash of $33.5 million.

(4) Market equity includes 73,194,924 shares of the Company's common stock and 222,737 units outstanding, which are convertible into common shares, and is calculated using $38.75 per share, the closing price of the Company's common stock on June 30, 2017.
(5) 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. In January 2017, the Trust amended the term loans to extend the maturity of the five year tranche by three years to 2022 and reduce the interest rate margin of the seven year tranche by 35 bps.
(6) Equals Adjusted EBITDA of $150.9 million divided by interest expense, net of capitalized interest of $13.2 million. See page 23 for reconciliation to Adjusted EBITDA.

(7) 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.
(8) Represents available proceeds from sales of common stock sold under ATM forward agreements through June 30, 2017. The Company has the option of settling $289.8 million of forward shares sold prior to December 31, 2017, and the remaining $14.7 million forward transactions can be settled, shares issued and proceeds received at any time at the Company's option through December 31, 2018. Undrawn proceeds from the completed ATM forward sales are not factored into the metrics above.

SECOND QUARTER

20
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CAPITAL STRUCTURE


q22017suppl_chart-34263.jpg
NOTE: At June 30, 2017, the Trust had $304.5 million of undrawn proceeds from shares sold under ATM forward agreements.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average Interest Rate of Debt Maturing Each Year (2)
 
 
2017
 
2018
 
2019
 
2020
 
2021
 
2022
 
2023
 
2024
Fixed Rate Debt
 
—%
 
—%
 
—%
 
—%
 
3.5%
 
2.9%
 
—%
 
4.6%
Variable Rate Debt
 
2.8%
 
2.5%
 
—%
 
—%
 
—%
 
—%
 
—%
 
—%
Total Debt
 
2.8%
 
2.5%
 
—%
 
—%
 
3.5%
 
2.9%
 
—%
 
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. The Company has locked rates on $150 million of unsecured private placement notes with an average interest rate of 4.26%. The notes are evenly split between a 12-year and a 15-year maturity, are expected to close in the third quarter of 2017, and a portion of the proceeds will be used to pay down the balance on the revolver. The current commitments have customary contingencies and closing of the transaction is not guaranteed.
(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.

SECOND QUARTER

21
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UNSECURED SENIOR NOTE COVENANTS

as of June 30, 2017
 
 
 
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
Unsecured Senior Note Covenants(1)
Requirement
 
Current Ratio
 
Total Debt to Total Asset Value
≤ 60%
 
25.8%
 
Secured Debt to Total Asset Value
≤ 40%
 
0.9%
 
Unencumbered Asset Value to Unsecured Debt
> 150%
 
392.6%
 
Interest Coverage
> 1.5x
 
6.9x
 
 
 
 
 
 
 
 
 
 
 
Calculation of Interest Coverage Ratio:
 
 
 
 
Adjusted Pro Forma EBITDA - TTM:
 
 
 
 
EdR Adjusted EBITDA(2)
$
150,941

 
 
 
Pro forma Adjustments - acquisitions & dispositions (1)
3,578

 
 
 
Total Adjusted Pro Forma EBITDA - TTM
$
154,519


 
 
 
 
 
 
 
Pro Forma Interest Expense - TTM:
 
 
 
 
Interest expense, net of capitalized interest
$
13,246

 
 
 
Add back: Capitalized interest
10,175

 
 
 
Pro forma adjustments(1)
(920
)
 
 
 
Pro forma interest expense - TTM
$
22,501


 
 
 
 
 
 
 
Interest Coverage
6.9x

 
 
 
 
 
 
 
 
(1) Computed in accordance with the First Supplemental Indenture filed November 24, 2014 with the SEC. 
(2) See page 23 for a reconciliation to EdR Adjusted EBITDA.


SECOND QUARTER

22
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RECONCILIATION OF NON-GAAP MEASURES


Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA)

(Amounts in thousands)
 
Six Months
 
Plus: Year
 
Less: Six
 
Trailing Twelve
 
 
 
Ended
 
Ended
 
Months Ended
 
Months Ended
 
 
 
June 30, 2017
 
December 31, 2016
 
June 30, 2016
 
June 30, 2017
 
Net income attributable to common shareholders
 
$
22,217

 
$
44,924

 
$
34,324

 
$
32,817

 
Straight line adjustment for ground leases
 
2,349

 
4,731

 
2,373

 
4,707

 
Acquisition costs
 
27

 
619

 
238

 
408

 
Depreciation and amortization
 
50,359

 
81,413

 
36,615

 
95,157

 
Loss on impairment of collegiate housing assets
 
—

 
2,500

 
—

 
2,500

 
Gain on sale of collegiate housing assets
 
(691
)
 
(23,956
)
 
(23,956
)
 
(691
)
 
Interest expense, net of capitalized interest
 
6,090

 
15,454

 
8,298

 
13,246

 
Amortization of deferred financing costs
 
779

 
1,731

 
937

 
1,573

 
Interest income
 
(49
)
 
(490
)
 
(274
)
 
(265
)
 
Loss on extinguishment of debt
 
22

 
10,611

 
10,136

 
497

 
Income tax expense (benefit)
 
(532
)
 
684

 
140

 
12

 
Other operating expense - change in fair value of contingent consideration liability
 
500

 
1,046

 
—

 
1,546

 
Noncontrolling interests
 
(386
)
 
(220
)
 
(40
)
 
(566
)
 
Adjusted EBITDA
 
$
80,685

 
$
139,047

 
$
68,791

 
$
150,941

 
Annualize acquisitions, developments and dispositions(1)
 
—

 
—

 
—

 
4,504

 
Pro Forma Adjusted EBITDA
 
$
80,685

 
$
139,047

 
$
68,791

 
$
155,445

 
 
 
 
 
 
 
 
 
 
 
(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

23
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RECONCILIATION OF NON-GAAP MEASURES


Net operating income (NOI)
(Amounts in thousands)
Three months ended June 30,
 
Six months ended June 30,
 
2017
 
2016
 
2017
 
2016
Operating income
$
8,625

 
$
9,486

 
$
27,066

 
$
29,702

Less: Third-party development services revenue
1,156

 
467

 
2,971

 
950

Less: Third-party management services revenue
831

 
697

 
1,776

 
1,591

Plus: Other operating expense
—

 
—

 
500

 
—

Plus: Development and management services expenses
2,775

 
2,728

 
5,676

 
5,249

Plus: General and administrative expenses, development pursuit, acquisition costs and severance
3,338

 
3,079

 
6,765

 
6,188

Plus: Ground leases
2,462

 
2,296

 
6,022

 
5,605

Plus: Depreciation and amortization
24,520

 
19,099

 
50,359

 
36,615

NOI
$
39,733

 
$
35,524

 
$
91,641

 
$
80,818


Debt to gross assets
(Amounts in thousands)
 
June 30, 2017
 
December 31, 2016
Mortgage and construction loans, excluding unamortized deferred financing costs of $21 and $56 as of June 30, 2017 and December 31, 2016, respectively
 
$
29,772

 
$
62,576

Unsecured revolving credit facility
 
345,000

 
20,000

Unsecured term loan, excluding unamortized deferred financing costs of $1,115 and $762 as of June 30, 2017 and December 31, 2016, respectively
 
187,500

 
187,500

Unsecured senior notes, excluding unamortized deferred financing costs of $1,931 and $2,062 as of June 30, 2017 and December 31, 2016, respectively
 
250,000

 
250,000

Total debt, excluding unamortized deferred financing costs
 
$
812,272

 
$
520,076

 
 
 
 
 
Total assets
 
$
2,802,943

 
$
2,506,185

Accumulated depreciation(1)
 
343,132

 
315,634

Gross assets
 
$
3,146,075

 
$
2,821,819

 
 
 
 
 
Debt to gross assets
 
25.8
%
 
18.4
%
(1) Represents accumulated depreciation on real estate assets.

 
 
 
 


SECOND QUARTER

24
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UPDATED 2017 GUIDANCE

(Amounts in thousands, except per share/unit data)
Year ending December 31, 2017
 
Low End
 
High End
 
 
 
 
Net income attributable to EdR
$
41,700

 
$
49,400

 
 
 
 
Real estate related depreciation and amortization
97,800

 
97,800

Equity portion of real estate depreciation and amortization on equity investees
2,500

 
2,500

Gain on sale of collegiate housing assets
(691
)
 
(691
)
Noncontrolling interests
(300
)
 
(300
)
Funds from operations ("FFO") available to stockholders and unitholders
$
141,009

 
$
148,709

 
 
 
 
FFO adjustments:
 
 
 
Loss on extinguishment of debt
22

 
22

Acquisition costs
27

 
27

Change in fair value of contingent consideration liability (1)
500

 
500

Straight-line adjustment for ground leases (2)
4,700

 
4,700

FFO adjustments
5,249

 
5,249

 
 
 
 
Core funds from operations ("Core FFO") available to stockholders and unitholders
$
146,258

 
$
153,958

 
 
 
 
Earnings per share – diluted (3)
$
0.51

 
$
0.61

 
 
 
 
FFO per weighted average share/unit (4)
$
1.84

 
$
1.94

 
 
 
 
Core FFO per weighted average share/unit (4)
$
1.90

 
$
2.00

 
 
 
 
Weighted average shares/units (4)
76,800

 
76,800

 
 
 
 
 
 
 
 
(1) This represents the fair value adjustment for Urbane's contingent consideration.

(2) Represents the straight-line rent expense adjustment required by GAAP related to ground leases. As ground lease terms range from 40 to 99 years, the adjustment to straight-line these agreements becomes material to our operating results, distorting the economic results of the communities.
(3) The numerator for earnings per share - diluted also includes $2.6 million of accretion of redeemable noncontrolling interests for the year ended December 31, 2017.
(4) FFO and Core FFO per weighted average share/unit were computed using the weighted average of all shares and operating partnership units outstanding, regardless of their dilutive impact.

SECOND QUARTER

25
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COMMUNITY LISTING - OWNED

Name
 
Primary University Served
 
 Acquisition/Development Date
 
# of Beds
 
Name
 
Primary University Served
 
Acquisition/Development Date
 
# of Beds
Same-Communities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 Columbia
 
University of Missouri
 
Jan '05
 
676

 
Lymon T. Johnson Hall (ONE
Plan)(3)
 
University of Kentucky
 
Aug '13
 
301

Commons at Knoxville
 
University of Tennessee
 
Jan '05
 
708

 
Herman Lee Donovan Hall (ONE
Plan)(3)
 
University of Kentucky
 
Aug '13
 
300

Campus Creek
 
University of Mississippi
 
Feb '05
 
636

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

Campus Lodge
 
University of Florida
 
Jun '05
 
1,115

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

Carrollton Crossing
 
University of West Georgia
 
Jan '06
 
336

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

River Pointe
 
University of West Georgia
 
Jan '06
 
504

 
The Cottages on Lindberg
 
Purdue University
 
Sept '13
 
745

The Reserve at Saluki Pointe
 
Southern Illinois University
 
Aug '08, Aug '09
 
768

 
The Varsity
 
University of Michigan
 
Dec '13
 
415

University Village on Colvin (ONE
Plan)
 
Syracuse University
 
Aug '09
 
432

 
The Lotus
 
University of Colorado -
Boulder
 
Nov '11, Aug '14
 
235

GrandMarc at The Corner
 
University of Virginia
 
Oct '10
 
641

 
109 Tower
 
Florida International
University
 
Aug '14
 
542

Wertland Square
 
University of Virginia
 
Mar '11
 
152

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

Jefferson Commons
 
University of Virginia
 
Mar '11
 
82

 
Frances Jewell Hall (ONE Plan)(3)
 
University of Kentucky
 
Aug '14
 
740

The Berk on College
 
University of California,
Berkeley
 
May '11
 
122

 
Georgia M. Blazer Hall (ONE
Plan)(3)
 
University of Kentucky
 
Aug '14
 
427

The Berk on Arch
 
University of California,
Berkeley
 
May '11
 
43

 
Haggin Hall (ONE Plan)(3)
 
University of Kentucky
 
Aug '14
 
396

University Village Towers
 
University of California,
Riverside
 
Sept '11
 
554

 
Woodland Glen I (ONE Plan)(3)
 
University of Kentucky
 
Aug '14
 
409

Irish Row
 
University of Notre Dame
 
Nov '11
 
326

 
Woodland Glen II (ONE Plan)(3)
 
University of Kentucky
 
Aug '14
 
409

GrandMarc at Westberry Place
(ONE Plan)
 
Texas Christian University
 
Dec '11
 
562

 
The District on Apache
 
Arizona State University -
Tempe
 
Sept '14
 
900

Campus West (ONE Plan)
 
Syracuse University
 
Aug '12
 
313

 
Commons on Bridge
 
University of Tennessee
 
June '15
 
150

East Edge
 
University of Alabama
 
Aug '12
 
774

 
Oaks on the Square- Ph IV
 
University of Connecticut
 
Aug '15
 
391

The Province
 
East Carolina University
 
Sept '12
 
728

 
The Retreat at Louisville
 
University of Louisville
 
Aug '15
 
656

The District on 5th
 
University of Arizona
 
Oct '12
 
764

 
Woodland Glen III (ONE Plan)(3)
 
University of Kentucky
 
Aug '15
 
782

Campus Village
 
Michigan State University
 
Oct '12
 
355

 
Woodland Glen IV (ONE Plan)(3)
 
University of Kentucky
 
Aug '15
 
578

The Province
 
Kent State University
 
Nov '12
 
596

 
Woodland Glen V (ONE Plan)(3)
 
University of Kentucky
 
Aug '15
 
250

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

 
The Province Boulder
 
University of Colorado -
Boulder
 
Sept '15
 
317

 
 
 
 
 
 
 
 
 
 
Total Same-Communities
 
 
 
26,167


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COMMUNITY LISTING - OWNED

Name
 
Primary University Served
 
 Acquisition/Development Date
 
# of Beds
 
Name
 
Primary University Served
 
Acquisition/Development Date
 
# of Beds
New-Communities
 
 
 
 
 
 
 
Other-Communities
 
 
 
 
 
 
The Retreat at Oxford(1)
 
University of Mississippi
 
Aug '13, Aug '16
 
1,018

 
University Towers(4)
 
North Carolina State
University
 
Jan '05
 
889

Lokal(1)
 
Colorado State University
 
March '16
 
194

 
 
 
Total Other-Communities
 
 
 
889

The Hub at Madison(1)
 
University of Wisconsin
 
May '16
 
1,038

 
 
 
 
 
 
 

Holmes Hall (ONE Plan)(3)
 
University of Kentucky
 
Aug '16
 
645

 
 
 
Total Owned-Communities
 
 
 
33,102

Boyd Hall (ONE Plan)(3)
 
University of Kentucky
 
Aug '16
 
496

 
 
 
 
 
 
 

The Retreat at Blacksburg(1)
 
Virginia Tech
 
Aug '16
 
829

 
 
 
 
 
 
 
 
Pura Vida Place(2)
 
Colorado State University
 
Aug '16
 
100

 
 
 
 
 
 
 
 
Carriage House(2)
 
Colorado State University
 
Aug '16
 
94

 
 
 
 
 
 
 

Urbane(2)
 
University of Arizona
 
Sept '16
 
311

 
 
 
 
 
 
 

Retreat at Corvallis
 
Oregon State University
 
Jan '17
 
1,016

 
 
 
 
 
 
 
 
319 Bragg
 
Auburn University
 
Feb '17
 
305

 
 
 
 
 
 
 
 
 
 
Total New-Communities
 
 
 
6,046

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(1) The same-community designation for leasing purposes is different than for financial reporting purposes. These communities are considered same-community for 2017/2018 leasing purposes, as the Company managed the leasing process for both the 2016/2017 and 2017/2018 lease cycles. Total same-community beds for leasing purposes is 24,654.
(2) These properties are considered new for purposes of leasing, as we did not manage the leasing process for the 2016/2017 lease year.
(3) The Kentucky communities, totaling 5,733 beds, are excluded from the leasing update on pages 10 and 11, as the assignment process has not yet occurred.
(4) University Towers moved into other-communities on January 1, 2017 due to an anticipated change in the operations of the property related to the University's new live-on requirement. University Towers is considered new for purposes of leasing.

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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
Jeffrey Spector
(646) 855-1363
jeff.spector@baml.com
 
CANACCORD|Genuity
Ryan Meliker
(212) 389-8094
rmeliker@canaccordgenuity.com
 
Citi
Nicholas Joseph
(212) 816-1909
nicholas.joseph@citi.com
 
Evercore ISI
Gwen Clark
(212) 446-5611
gwen.clark@evercoreisi.com
 
FBR Capital Markets & Co.
David Corak
(703) 312-1610
dcorak@fbr.com
 
Green Street Advisors
Ryan Burke
(949) 640-8780
rburke@greenstreetadvisors.com
 
Goldman Sachs
Andrew Rosivach
(212) 902-2796
andrew.rosivach@gs.com
 
Hilliard Lyons
Carol Kemple
(502) 588-1839
ckemple@hilliard.com
 
JMP Securities
Aaron Hecht
(415) 835-3963
ahecht@jmpsecurities.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 Babin
(215) 553-7816
dbabin@rwbaird.com
 
Sandler O'Neill + Partners, L.P.
Alex Goldfarb
(212) 466-7937
agoldfarb@sandleroneill.com


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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 (excluding unamortized deferred financing costs) less cash and excludes non income-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: Idaho, Iowa, Oklahoma, Missouri; North: Michigan, Minnesota, Ohio, Indiana, Illinois, Wisconsin; South Central: Texas, Tennessee, Mississippi, Kentucky; Southeast: Florida, Alabama, Georgia; West: Arizona, California, Colorado, Oregon.
 
 
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.
 
 
EdR's Economic Ownership of Developments
Represents total project cost multiplied by EdR's ownership percentage, which is reflective of EdR's economic interest in operating results.
 
 
Development Cost Funded by EdR's Balance Sheet
For developments that are consolidated in EdR's financials but less than 100% owned, 100% of the development costs and debt related to the development is included in EdR's balance sheet. As such, EdR's funding requirement and impact on leverage is equal to total project cost less equity contributed by our joint venture partner.


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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

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