Education Realty Trust, Inc. - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

file	filename
8-K - 8-K - Education Realty Trust, Inc.	a8-kannouncing1q2015earnin.htm
EX-99.1 - EXHIBIT 99.1 - Education Realty Trust, Inc.	a2015-q1edrearningsrelease.htm



		FINANCIAL HIGHLIGHTS



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

OPERATING DATA:
		Three Months Ended March 31,
		2015		2014		$ Chg			% Chg
	Same-community revenue	$	48,077	$	44,999	$	3,078		6.8	%
	Total community revenue	60,383		50,711		9,672			19.1	%
	Total revenue	64,129		54,545		9,584			17.6	%

	Same-community net operating income	28,090		26,557		1,533			5.8	%
	Total community net operating income	36,243		28,543		7,700			27.0	%
	Total operating income	13,838		8,312		5,526			66.5	%

	Net income	6,941		12,066		(5,125		)	(42.5	)%
	Per share - basic and diluted	$	0.14	$	0.31	$	(0.17	)	(54.8	)%

	Funds from operations (FFO)	23,096		17,050		6,046			35.5	%
	Per weighted average share/unit ⁽¹⁾	$	0.48	$	0.44	$	0.04		9.1	%

	Core funds from operations (Core FFO)	24,297		19,361		4,936			25.5	%
	Per weighted average share/unit ⁽¹⁾	$	0.50	$	0.50	$	—		—	%

FINANCIAL RATIOS:
		3/31/2015				12/31/2014
	Debt to gross assets	35.6%				35.1%
	Net debt to enterprise value	29.4%				28.1%
	Interest coverage ratio (TTM)	5.2x				5.0x
	Net debt to EBITDA - Adjusted (TTM)	4.7x				4.9x


⁽¹⁾ FFO and Core FFO per share/unit were computed using weighted average shares and units outstanding, regardless of their dilutive impact. See page 5 for a detailed calculation.



FIRST QUARTER 2015		1



		BALANCE SHEET



(Amount in thousands, except share and per share data)		March 31, 2015			December 31, 2014
Assets		(unaudited)
	Collegiate housing properties, net ⁽¹⁾	$	1,574,006		$	1,586,009
	Assets under development	171,039			120,702
	Cash and cash equivalents	23,640			18,385
	Restricted cash	9,149			10,342
	Other assets	74,421			76,199
Total assets		$	1,852,255		$	1,811,637

Liabilities and equity
Liabilities:
	Mortgage and construction loans, net of unamortized premium	$	230,988		$	249,637
	Unsecured revolving credit facility	72,000			24,000
	Unsecured term loans	187,500			187,500
	Senior unsecured notes	250,000			250,000
	Accounts payable and accrued expenses	87,171			76,869
	Deferred revenue	18,383			17,301
Total liabilities		846,042			805,307

Commitments and contingencies		—			—
Redeemable noncontrolling interests		14,962			14,512

Equity:
EdR stockholders' equity:
	Common stock, $0.01 par value per share, 200,000,000 shares authorized, 48,330,648 and 47,999,427 shares issued and outstanding as of March 31, 2015 and December 31, 2014, respectively	483			480
	Preferred shares, $0.01 par value per share, 50,000,000 shares authorized, no shares issued and outstanding	—			—
	Additional paid-in capital	1,027,966			1,034,683
	Accumulated deficit	(34,968		)	(41,909		)
	Accumulated other comprehensive loss	(6,904		)	(4,465		)
Total EdR stockholders' equity		986,577			988,789
Noncontrolling interest		4,674			3,029
Total equity		991,251			991,818
Total liabilities and equity		$	1,852,255		$	1,811,637

⁽¹⁾ Amount is net of accumulated depreciation of $225,141 and $210,047, as of March 31, 2015 and December 31, 2014, respectively.



FIRST QUARTER 2015		2



		OPERATING RESULTS



(Amounts in thousands, except per share data, unaudited)
	Three months ended March 31,
	2015			2014			$ Change
Revenues:
Collegiate housing leasing revenue	$	60,383		$	50,711		$	9,672
Third-party development consulting services	597			802			(205		)
Third-party management services	1,053			1,018			35
Operating expense reimbursements	2,096			2,014			82
Total revenues	64,129			54,545			9,584
Operating expenses:
Collegiate housing leasing operations	24,140			22,168			1,972
Development and management services	2,702			2,341			361
General and administrative	2,470			2,117			353
Development pursuit, acquisition costs and severance	169			1			168
Depreciation and amortization	15,866			13,783			2,083
Ground lease expense	2,848			1,899			949
Loss on impairment of collegiate housing properties	—			1,910			(1,910		)
Reimbursable operating expenses	2,096			2,014			82
Total operating expenses	50,291			46,233			4,058
Operating income	13,838			8,312			5,526
Nonoperating (income) expenses:
Interest expense	5,941			5,601			340
Amortization of deferred financing costs	516			503			13
Interest income	(38		)	(70		)	32
Loss on extinguishment of debt	—			649			(649		)
Total nonoperating expenses	6,419			6,683			(264		)
Income before equity in losses of unconsolidated entities, income taxes and gain on sale of collegiate housing properties	7,419			1,629			5,790
Equity in losses of unconsolidated entities	(194		)	(22		)	(172		)
Income before income taxes and gain on sale of collegiate housing properties	7,225			1,607			5,618
Income tax expense	78			45			33
Income before gain on sale of collegiate housing properties	7,147			1,562			5,585
Gain on sale of collegiate housing properties	—			10,902			(10,902		)
Net income	7,147			12,464			(5,317		)
Less: Net income attributable to the noncontrolling interests	206			398			(192		)
Net income attributable to Education Realty Trust, Inc.	$	6,941		$	12,066		$	(5,125	)



FIRST QUARTER 2015		3



		OPERATING RESULTS



(Amounts in thousands, except per share data, unaudited)
	Three months ended March 31,
	2015			2014			$ Change
Other comprehensive income (loss):
Loss on cash flow hedging derivatives	(2,439		)	(1,363		)	(1,076		)
Comprehensive income	$	4,502		$	10,703		$	(6,201	)


Earnings per share information:
Net income attributable to Education Realty Trust, Inc. common stockholders per share – basic and diluted	$	0.14		$	0.31		$	(0.17	)

Weighted average shares of common stock outstanding – basic	48,179			38,338
Weighted average shares of common stock outstanding – diluted ⁽¹⁾	48,501			38,684


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



FIRST QUARTER 2015		4



		FUNDS FROM OPERATIONS



(Amounts in thousands, except per share data, unaudited)		Three Months Ended March 31,
		2015		2014			$ Change
Net income attributable to EdR		$	6,941	$	12,066		$	(5,125	)
	Gain on sale of collegiate housing assets	—		(10,902		)	10,902
	Impairment losses	—		1,910			(1,910		)
	Real estate related depreciation and amortization	15,523		13,622			1,901
	Equity portion of real estate depreciation and amortization on equity investees	420		49			371
	Noncontrolling interests	212		305			(93		)
Funds from operations ("FFO")		23,096		17,050			6,046
	percent change						35.5		%

FFO adjustments:
	Loss on extinguishment of debt	—		649			(649		)
	Straight-line adjustment for ground leases ⁽¹⁾	1,201		1,212			(11		)
FFO adjustments		1,201		1,861			(660		)

FFO on Participating Developments:⁽²⁾
	Interest on loan to Participating Development	—		450			(450		)
FFO on Participating Developments		—		450			(450		)

Core funds from operations ("Core FFO")		$	24,297	$	19,361		$	4,936
	percent change						25.5		%

FFO per weighted average share/unit ⁽³⁾		$	0.48	$	0.44		$	0.04
	percent change						9.1		%
Core FFO per weighted average share/unit ⁽³⁾		$	0.50	$	0.50		$	—
	percent change						—		%

Weighted average shares/units ⁽³⁾		48,501		38,684			9,817
	percent change						25.4		%

⁽¹⁾ This represents the straight-line rent expense adjustment required by GAAP related to ground leases. As the ground lease terms range from 40 to 99 years, the adjustment to straight-line these agreements becomes material to our operating results, distorting the economic results of the communities.
⁽²⁾ FFO on participating developments in 2014 represents the economic impact of interest and fees not recognized in net income due to the Company having a participating investment in the third-party development. The adjustment for development fees is recognized under the same percentage of completion method of accounting used for third-party development fees. The adjustment for interest income is based on terms of the loan. In July 2014, our mezzanine investment was repaid in full, ending the Company's participation in the project and any fees and interest. At the same time all previously deferred amounts were recognized in net income.
⁽³⁾ FFO and Core FFO per weighted average share/unit were computed using the weighted average of all shares and partnership units outstanding, regardless of their dilutive impact.



FIRST QUARTER 2015		5



	COMMUNITY OPERATING RESULTS



(Amounts in thousands, unaudited)

		Three Months Ended March 31,
		2015		2014			$ Change			% Change
Revenues
	Same-communities⁽¹⁾	$	48,077	$	44,999		$	3,078		6.8	%
	New-communities ⁽²⁾	11,939		98			11,841			NM
	Sold-communities⁽³⁾	—		5,614			(5,614		)	NM
	CA revenue⁽⁴⁾	367		—			367			NM
Total revenues		60,383		50,711			9,672			19.1	%

Operating expenses ⁽⁵⁾
	Same-communities⁽¹⁾	19,987		18,442			1,545			8.4	%
	New-communities ⁽²⁾	3,786		545			3,241			NM
	Sold-communities⁽³⁾	—		3,181			(3,181		)	NM
	CA expense⁽⁴⁾	367		—			367			NM
Total operating expenses		24,140		22,168			1,972			8.9	%

Net operating income
	Same-communities⁽¹⁾	28,090		26,557			1,533			5.8	%
	New-communities ⁽²⁾	8,153		(447		)	8,600			NM
	Sold-communities⁽³⁾	—		2,433			(2,433		)	NM
Total net operating income		$	36,243	$	28,543		$	7,700		27.0	%



⁽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 23 of this supplement for a listing of same-communities.
⁽²⁾ See page 23 of this supplement for a listing of which communities are categorized as new-communities.
⁽³⁾ Represents operating results from communities sold in 2014. No communities have been sold in 2015.
⁽⁴⁾ Represents additional same-community revenue and expenses incurred as a result of the Company changing its community assistant program at the end of 2014. The amounts are shown separately as there is no NOI impact and to clearly show the operating growth in revenue and expenses year over year.
⁽⁵⁾ Represents community level operating expenses, excluding management fees, depreciation, amortization, ground lease expense and impairment charges, plus regional and other corporate costs of supporting the communities.



FIRST QUARTER 2015		6



	SAME-COMMUNITY EXPENSES BY CATEGORY



(Amounts in thousands, except bed and per-bed data, unaudited)
	Three months ended March 31, 2015						Three months ended March 31, 2014
	Amount		Per Bed		% of Total Operating Expenses		Amount		Per Bed		% of Total Operating Expenses		$ Change			% Change
Utilities⁽¹⁾	$	5,626	$	244	28	%	$	5,432	$	235	29	%	$	194		3.6	%
On-Site Payroll	3,492		151		17	%	3,272		142		18	%	220			6.7	%
General & Administrative⁽²⁾	3,142		136		16	%	3,043		132		17	%	99			3.3	%
Maintenance & Repairs⁽³⁾	1,118		48		6	%	1,082		47		6	%	36			3.3	%
Marketing	998		43		5	%	997		43		5	%	1			0.1	%
Total Direct Operating Expenses	$	14,376	$	622	72	%	$	13,826	$	599	75	%	$	550		4.0	%

Real Estate Taxes	5,033		218		25	%	4,048		175		22	%	985		⁽⁴⁾	24.3	%
Insurance	578		25		3	%	568		25		3	%	10			1.8	%
Total Fixed Operating Expenses	$	5,611	$	243	28	%	$	4,616	$	200	25	%	$	995		21.6	%
Total Property Operating Expenses	$	19,987	$	865	100	%	$	18,442	$	799	100	%	$	1,545	⁽⁴⁾	8.4	%


Same-community beds	23,079

NOTE: Schedule does not include $0.4 million of expenses in 2015 related to the Company's change in its community assistant program at the end of the prior year. See note 4 on page 6.

⁽¹⁾Represents gross costs before recoveries from tenants and includes student amenities such as internet.
⁽²⁾ Includes property-level general and administrative cost and dining costs as well as regional and other corporate costs of supporting the communities.
⁽³⁾ Includes general maintenance costs, grounds and landscaping, turn costs and life safety costs.
⁽⁴⁾ During the first quarter of 2015 the Company accrued an additional $0.8 million in real estate taxes relating to the expected settlement of an assessment dispute with a local school board at one community covering several prior assessment years. Without this charge, real estate taxes would have only increased 4.4% and total operating expenses would have only increased 4.0% over prior year.



FIRST QUARTER 2015		7



		COMMUNITY OPERATIONS - TRAILING FIVE QUARTERS



(Amounts in thousands, except beds and per bed amounts)		Three Months Ended															Total / Weighted Average - Trailing Twelve Months
		March 31, 2014			June 30, 2014			September 30, 2014			December 31, 2014			March 31, 2015			Total / Weighted Average - Trailing Twelve Months
2015 Same Communities
	Revenue	$	44,999		$	42,094		$	40,064		$	48,669		$	48,077		$	178,904
	Operating Expenses	18,442			17,957			22,453			18,714			19,987			79,111
	Net Operating Income	$	26,557		$	24,137		$	17,611		$	29,955		$	28,090		$	99,793
	Margin	59		%	57		%	44		%	62		%	58		%	56		%
	Beds	69,237			69,237			69,237			69,237			69,237			276,948
	Occupancy⁽¹⁾	93.5		%	87.3		%	89.2		%	96.4		%	96.0		%	92.2		%
	Net Apartment Rent per Occupied Bed	$	654		$	645		$	583		$	689		$	678		$	650
	Other Income per Occupied Bed	41			52			66			40			45			51
	Total Revenue per Occupied Bed	$	695		$	697		$	649		$	729		$	723		$	701
	Operating Expense per Available Bed	$	266		$	259		$	324		$	270		$	289		$	286

2015 New Communities
	Revenue	$	98		$	89		$	4,928		$	11,823		$	11,939		$	28,779
	Operating Expenses	545			629			2,180			3,012			3,786			9,607
	Net Operating Income	$	(447	)	$	(540	)	$	2,748		$	8,811		$	8,153		$	19,172
	Margin	(456		)%	(607		)%	56		%	75		%	68		%	67		%
	Beds	120			120			8,256			13,674			13,674			35,724
	Occupancy⁽¹⁾	95.8		%	95		%	95.0		%	95.6		%	95.0		%	95.2		%
	Net Apartment Rent per Occupied Bed	$	729		$	737		$	597		$	883		$	882		$	816
	Other Income per Occupied Bed	120			40			31			22			37			30
	Total Revenue per Occupied Bed	$	849		$	777		$	628		$	905		$	919		$	846
	Operating Expense per Available Bed	$	4,538		$	5,243		$	264		$	220		$	277		$	269

2015 Sold Communities
	Revenue	$	5,614		$	4,127		$	2,664		$	1,153		$	—		$	7,944
	Operating Expenses	3,181			2,389			2,287			860			—			5,536
	Net Operating Income	$	2,433		$	1,738		$	377		$	293		$	—		$	2,408
	Margin	43		%	42		%	14		%	25		%	—		%	30		%
	Beds	12,912			9,549			6,383			1,628			—			17,560
	Occupancy⁽¹⁾	89.0		%	90.0		%	88.5		%	89.2		%	—		%	89.4		%
	Net Apartment Rent per Occupied Bed	$	464		$	455		$	426		$	754		$	—		$	472
	Other Income per Occupied Bed	25			25			46			40			—			34
	Total Revenue per Occupied Bed	$	489		$	480		$	472		$	794		$	—		$	506
	Operating Expense per Available Bed	$	245		$	250		$	362		$	529		$	—		$	316



FIRST QUARTER 2015		8



		COMMUNITY OPERATIONS - TRAILING FIVE QUARTERS



(Amounts in thousands, except beds and per bed amounts)		Three Months Ended															Total / Weighted Average - Trailing Twelve Months
		March 31, 2014			June 30, 2014			September 30, 2014			December 31, 2014			March 31, 2015			Total / Weighted Average - Trailing Twelve Months
Other⁽²⁾
	Revenue	$	—		$	—		$	—		$	—		$	367		$	367
	Operating Expenses	—			—			—			—			367			367
	Net Operating Income	$	—		$	—		$	—		$	—		$	—		$	—
	Margin	—		%	—		%	—		%	—		%	—		%	—		%

2015 Total Communities
	Revenue	$	50,711		$	46,310		$	47,656		$	61,645		$	60,383		$	215,994
	Operating Expenses	22,168			20,975			26,920			22,586			24,140			94,621
	Net Operating Income	$	28,543		$	25,335		$	20,736		$	39,059		$	36,243		$	121,373
	Margin	56		%	55		%	44		%	63		%	60		%	56		%
	Beds	82,269			78,906			83,876			84,539			82,911			330,232
	Occupancy⁽¹⁾	92.8		%	87.6		%	89.8		%	96.1		%	95.8		%	92.4		%
	Net Apartment Rent per Occupied Bed	625			621			572			721			716			661
	Other Income per Occupied Bed	39			49			61			37			44			47
	Total Revenue per Occupied Bed	664			670			633			758			760			708
	Operating Expense per Available Bed	269			266			321			268			291			287

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



FIRST QUARTER 2015		9



	PRELEASING SUMMARY



						Preleasing at April 23,
	Design Beds	% of NOI		2014 Opening Occupancy		2015		2014		Preleasing Ahead/(Behind)		Projected Rate Growth

Same-Communities - by Tier
Prior Year Occupancy Below 90% (Tier 1)	2,906	6.9	%	81.6	%	42.0	%	38.8	%	3.2	%	1.4	%
Prior Year Occupancy 90% to 94.9% (Tier 2)	2,063	9.0	%	92.2	%	65.4	%	70.2	%	(4.8	)%	2.4	%
Prior Year Occupancy 95% to 97.9% (Tier 3)	5,772	18.5	%	97.4	%	75.4	%	67.8	%	7.6	%	2.7	%
Subtotal - Tiers 1 - 3	10,741	34.4	%	92.1	%	64.5	%	60.4	%	4.1	%
Prior Year Occupancy 98% and Above (Tier 4)	13,014	65.6	%	99.6	%	86.7	%	87.4	%	(0.7	)%	3.5	%
Total Same-Communities ⁽¹⁾	23,755	100.0	%	96.2	%	76.6	%	75.2	%	1.4	%	3.0	%
Total New-Communities ⁽²⁾	1,947					79.1	%
Total Communities	25,702					76.8	%

Projected Fall Revenue:
The same-community portfolio is projected to obtain a 2.5% to 3.5% increase in revenue for the upcoming lease term, with net rates up 3% and occupancies consistent with the prior year.



NOTE: Leasing update does not include 2,982 same-community beds or 1,610 new-community beds to be delivered in 2015 at the University of Kentucky. Although the university's assignment process does not occur until May, all 4,592 beds, which include the 601 beds delivered in 2013, 2,381 beds delivered in 2014, and 1,610 beds to be delivered in 2015, are currently over 130% applied for this fall.

⁽¹⁾ The same-community designation for leasing purposes is different than for financial reporting purposes. A community is considered same-community for leasing when the Company has managed the leasing process for at least two leasing cycles, including the 2015/2016 leasing cycle. Design Beds for Same-Communities included in the 2015 Preleasing Summary above include the following design beds: (1) Total same-community design beds on page 23 of 23,079 less (2) 601 design beds at Central Hall I & II at the University of Kentucky (see note above), plus (3) 1,277 design beds on communities that are considered same for leasing purposes (see footnote 1 on page 23).

⁽²⁾The new-community designation for leasing purposes is different than for financial statement purposes. A community is considered new-community for leasing when the Company has not previously managed the leasing process. Design beds for Total New-Communities above include the following: (1) our 2014 acquisition of The District on Apache (900 beds) and (2) beds at our 2015 development deliveries - The Oaks on the Square - Phase IV (390 beds) and The Retreat at Louisville (656 beds).



FIRST QUARTER 2015		10



	SAME-COMMUNITY PRELEASING BY REGION AND DISTANCE



						Preleasing at April 23,
	Design Beds	% of NOI		2014 Opening Occupancy		2015		2014		Preleasing Ahead/(Behind)		Projected Rate Growth

Same-Communities - by Region ⁽¹⁾
Mid-Atlantic	5,811	30.5	%	95.0	%	84.0	%	81.5	%	2.5	%	3.1	%
Midwest	2,636	7.5	%	93.6	%	65.6	%	58.6	%	7.0	%	3.0	%
North	3,206	12.9	%	99.3	%	82.1	%	85.9	%	(3.8	)%	3.3	%
South Central	4,094	20.6	%	97.9	%	82.8	%	80.2	%	2.6	%	3.5	%
Southeast	5,681	18.1	%	96.1	%	66.3	%	67.0	%	(0.7	)%	2.1	%
West	2,327	10.4	%	95.4	%	77.7	%	74.7	%	3.0	%	3.5	%
Total Same-Communities	23,755	100.0	%	96.2	%	76.6	%	75.2	%	1.4	%	3.0	%


Same-Communities - by Distance from Campus
0-0.2 miles	13,310	65.9	%	97.4	%	80.8	%	79.5	%	1.3	%	3.2	%
0.21-0.49 miles	2,144	7.2	%	97.1	%	73.1	%	73.7	%	(0.6	)%	3.7	%
0.5-0.99 miles	1,004	4.1	%	99.1	%	75.0	%	99.0	%	(24.0	)%	2.6	%
1.0-1.99 miles	5,437	17.7	%	92.0	%	70.3	%	58.2	%	12.1	%	2.6	%
2.0 & > miles	1,860	5.1	%	97.9	%	70.4	%	82.6	%	(12.2	)%	2.5	%
Total Same-Communities	23,755	100.0	%	96.2	%	76.6	%	75.2	%	1.4	%	3.0	%

NOTE: Leasing update does not include 2,982 same-community beds or 1,610 new-community beds to be delivered in 2015 at the University of Kentucky. Although the university's assignment process does not occur until May, all 4,592 beds, which include the 601 beds delivered in 2013, 2,381 beds delivered in 2014, and 1,610 beds to be delivered in 2015, are currently over 130% applied for this fall.

⁽¹⁾ See definition of regions on page 25.



FIRST QUARTER 2015		11



	TOP EdR MARKETS AND STATES BY REVENUE

*The data above is based on revenues for the twelve months ended March 31, 2015 and excludes properties that were sold during the period.



FIRST QUARTER 2015		12



	TOP EdR MARKETS AND STATES BY REVENUE

*The data above is based on revenues for the twelve months ended March 31, 2015 and excludes properties that were sold during the period.



FIRST QUARTER 2015		13



	NEW SUPPLY AND ENROLLMENT - EdR MARKETS

New supply expected to slow 15% from 2014 to 2015

EdR Market and Revenue Growth

*Enrollment projection represents the 3-year enrollment CAGR through 2013 for our markets.

NOTE: The mid-point of previously provided fall 2015 leasing guidance was used for the 2015 revenue growth projections.



FIRST QUARTER 2015		14



	OWNED COMMUNITY PROJECTED 2015 NEW SUPPLY & DEMAND INFORMATION




Owned Community Projected 2015 New Supply and Demand Information by Region

Region ⁽⁴⁾	Owned Beds ⁽³⁾	Percentage of Owned Beds	EdR NOI % ⁽¹⁾	Enrollment Growth 3 Year CAGR - Universities Served	2015 New Supply %	Variance
West	3,227	11%	12%	2.2%	0.5%	1.7%
Mid Atlantic	6,201	20%	25%	0.8%	1.6%	(0.8)%
North	3,206	11%	9%	0.6%	1.8%	(1.2)%
South Central	9,342	30%	34%	1.9%	1.2%	0.7%
Southeast	5,681	19%	14%	1.6%	2.4%	(0.8)%
Midwest	2,636	9%	6%	2.2%	3.2%	(1.0)%
Total	30,293	100%	100%	1.5%	1.6%	(0.1)%


Region ⁽⁴⁾	Anticipated 2015 Enrollment Growth⁽²⁾	2015 Supply Growth	Variance
West	3,259	882	2,377
Mid Atlantic	1,269	2,721	(1,452)
North	1,391	3,136	(1,745)
South Central	2,671	2,117	554
Southeast	3,392	5,790	(2,398)
Midwest	2,053	3,064	(1,011)
Total	14,035	17,710	(3,675)

NOTE: Schedule represents all markets served by EdR communities and includes all announced 2015 developments. Data was obtained from the National Center for Education Statistics, Axiometrics and local market data.

⁽¹⁾ Includes 2015 development deliveries. NOI is based on current 2014 net operating income with proforma adjustments for 2015 developments and developments or acquisitions that have been operating less than 12 months.
⁽²⁾ Extrapolated from 2013 enrollment statistics from National Center for Education Statistics using the previous 3-year enrollment growth percentage.
⁽³⁾ Total Owned Beds reported herein include Total Communities design beds on page 23 of 27,637 plus 1,610 of beds related to the 2015 deliveries at the University of Kentucky, 390 beds for 2015 delivery at the University of Connecticut, and 656 beds for 2015 delivery at the University of Louisville (see page 17).
⁽⁴⁾ See definition of regions on page 25.



FIRST QUARTER 2015		15



	OWNED COMMUNITY PROJECTED 2015 NEW SUPPLY & DEMAND INFORMATION





Projected 2015 New Supply Sorted by Percentage Increase

New Supply Growth	University Markets		EdR Bed Count		Pro Forma EdR NOI %⁽¹⁾
0%	12	33%	7,328	25%	25%
0.1% to 1.0%	6	16%	4,808	16%	13%
1.0% - 3.0%	11	30%	12,758	42%	46%
3.0% - 5.0%	4	11%	3,101	10%	8%
> 5.0%	4	10%	2,298	7%	8%
Total	37	100%	30,293	100%	100%


University Markets with > 5% Increase in 2015 New Supply

University	New Supply Increase	Pro Forma EdR NOI %
University of Louisville	8.4%	2.5%
St. Louis University	7.3%	1.2%
University of Oklahoma	6.8%	1.2%
University of Alabama	5.8%	3.0%
		7.9%

NOTE: Schedule represents all markets served by EdR communities and includes all announced 2015 developments. Data was obtained from the National Center for Education Statistics, Axiometrics and local market data.

⁽¹⁾ Includes 2015 development deliveries. NOI is based on current 2014 net operating income with proforma adjustments for 2015 developments and developments or acquisitions that have been operating less than 12 months.



FIRST QUARTER 2015		16



		OWNED DEVELOPMENT SUMMARY



(Amounts in thousands except bed counts)

Active Projects	Project Type	Bed Count	Estimated Start Date		Anticipated Completion Date	Total Project Development Cost		EdR's Ownership Percentage		EdR's Share of Development Cost			EdR's Share of Development Cost to be Funded
University of Kentucky - Woodland Glen III, IV & V	ONE Plan⁽¹⁾	1,610	In progress		Summer 2015	$	101,172	100	%	$	101,172		$	12,425
University of Georgia - Georgia Heights	Joint Venture ⁽²⁾	292	In progress		Summer 2015	55,615		50	%	27,808		⁽²⁾	—		⁽²⁾
University of Connecticut - The Oaks on the Square Ph IV	Wholly Owned	390	In progress		Summer 2015	45,000		100	%	45,000			28,253
University of Louisville - The Retreat at Louisville	Joint Venture	656	In Progress		Summer 2015	45,000		75	%	33,750			6,694
Total - 2015 Deliveries		2,948				$	246,787			$	207,730		$	47,372

University of Kentucky - Limestone Park I & II	ONE Plan ⁽¹⁾	1,141	In progress		Summer 2016	$	83,911	100	%	$	83,911		$	70,034
University of Mississippi - The Retreat - Phase II	Wholly Owned	350	In progress		Summer 2016	25,600		100	%	25,600			21,395
Total - 2016 Deliveries		1,491				$	109,511			$	109,511		$	91,429
Total Active Projects		4,439				$	356,298			$	317,241		$	138,801

Recently Awarded - 2017 Deliveries	Project Type	Bed Count	Total Project Development Cost
Boise State University	ONE Plan ⁽¹⁾
Arkansas State University	ONE Plan ⁽¹⁾
University of Kentucky	ONE Plan ⁽¹⁾
University of Kentucky - Honors College	ONE Plan ⁽¹⁾
Total Recently Awarded - 2017 Deliveries		2,000	$	150,000

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⁾ The On-Campus Equity Plan, or The ONE Plan^SM, is our equity program for universities, which allows universities to use EdR's equity and financial stability to develop and revitalize campus housing while preserving their credit capacity for other campus projects. The ONE Plan SM offers one service provider and one equity source to universities seeking to modernize on-campus housing to meet the needs of today's students.
⁽²⁾This project is not majority owned. As such, it will not be consolidated and we will recognize our portion of profits through equity in earnings on the income statement. Also as a result, the costs to be funded only represent EdR’s remaining required equity contribution.



FIRST QUARTER 2015		17



	THIRD-PARTY DEVELOPMENT SUMMARY



(Amounts in thousands except bed counts)


THIRD-PARTY PROJECTS
Project	Bed Count	Estimated Start Date	Anticipated Completion Date	Project Development Cost		Total Project Fees		Fees Earned Prior Year ⁽¹⁾		Fees Earned Quarter Ended March 31, 2015 ⁽¹⁾		Remaining Fees to Earn
Clarion University of Pennsylvania	728	Spring 2014	Fall 2015	$	55,104	$	2,092	$	931	$	394	$	767
University of Cal. Berkeley - Bowles Hall	186	Summer 2015	Summer 2016	TBD		1,600		—		—		1,600
East Stroudsburg University - Pennsylvania Ph II	488	Spring 2016	Summer 2017	TBD		TBD		—		—		—
Total	1,402			$	55,104	$	3,692	$	931	$	394	$	2,367

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

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



FIRST QUARTER 2015		18



		CAPITAL STRUCTURE




as of March 31, 2015					Principal Outstanding		Weighted Average Interest Rate		Average Term to Maturity (in years)
(Amounts in thousands)


Total Debt to Gross Assets				Fixed Rate - Mortgage Debt	$	139,632	5.5	%	2.9
Debt⁽¹⁾	739,210			Variable Rate - Mortgage Debt	34,000		2.3	%	1.3
Gross Assets⁽²⁾	2,077,396			Variable Rate - Construction Debt	56,078		2.0	%	1.2
Debt to Gross Assets	35.6		%	Fixed Rate - 5 Yr. Unsecured Term Loan ⁽⁶⁾	65,000		2.9	%	3.8
				Fixed Rate - 7 Yr. Unsecured Term Loan ⁽⁶⁾	122,500		3.9	%	5.8
Net Debt to Enterprise Value				Fixed Rate - Unsecured Senior Notes	250,000		4.6	%	9.7
Net Debt⁽¹⁾	$	715,570		Variable Rate - Unsecured Revolving Credit Facility	72,000		1.4	%	3.6
Market Equity ⁽³⁾	1,721,203			Debt⁽¹⁾ / Weighted Average	$	739,210	3.9	%	5.6
Enterprise Value	$	2,436,773		Less: Cash	23,640
				Net Debt	$	715,570
Net Debt to Enterprise Value	29.4		%


Interest Coverage (TTM)⁽⁴⁾	5.2x
Net Debt to EBITDA - Adjusted (TTM)⁽⁵⁾	4.7x
Variable Rate Debt to Total Debt	21.9%


⁽¹⁾ Excludes unamortized debt premium of $1.3 million.
⁽²⁾ Excludes accumulated depreciation of $225 million.
⁽³⁾Market equity includes 48,330,648 shares of the Company's common stock and 318,389 Operating Partnership Units, which are convertible into common shares, and is calculated using $35.38 per share, the closing price of the Company's common stock on March 31, 2015.
⁽⁴⁾ Equals Adjusted EBITDA of $109.3 million divided by interest expense of $21.0 million. See page 22 for reconciliation to Adjusted EBITDA.
⁽⁵⁾ Net Debt to EBITDA - Adjusted is calculated to normalize the impact of non-producing construction debt. In the calculation, Net Debt is total debt (excluding the unamortized debt premium) less cash and excludes non-producing debt related to assets under development at time of calculation. EBITDA is Proforma Adjusted EBITDA, which includes proforma adjustments to reflect all acquisitions, 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.



FIRST QUARTER 2015		19



		CAPITAL STRUCTURE



Weighted Average Interest Rate of Debt Maturing Each Year ⁽¹⁾
	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Fixed Rate Mortgage Loans	—%	4.2%	5.5%	—%	6.0%	5.7%	—%	—%	—%	—%
Total Debt	1.8%	3.1%	4.3%	1.4%	4.3%	5.7%	3.9%	—%	—%	4.6%

⁽¹⁾ The Trust entered into interest rate swaps to effectively fix the interest rate on the term loans. The weighted average interest rates reflect the swapped (fixed) rate plus the current margin.



FIRST QUARTER 2015		20



			UNSECURED SENIOR NOTE COVENANTS



as of March 31, 2015
(Amounts in thousands)

Unsecured Senior Note Covenants⁽¹⁾	Requirement		Current Ratio
Total Debt to Total Asset Value	≤ 60%		35.4%
Secured Debt to Total Asset Value	≤ 40%		11%
Unencumbered Asset Value to Unsecured Debt	> 150%		323.1%
Interest Coverage	> 1.5x		3.55x


Calculation of Interest Coverage Ratio:
Adjusted Pro Forma EBITDA - TTM:
EdR Adjusted EBITDA⁽²⁾	$	109,346
Pro forma Adjustments - acquisitions & dispositions⁽¹⁾	1,775
Total Adjusted Pro Forma EBITDA - TTM	$	111,121

Pro Forma Interest Expense - TTM:
Interest expense	$	20,996
Add back: Capitalized interest	5,980
Pro forma adjustments	4,292
Pro forma interest expense - TTM	$	31,268

Interest Coverage	3.55x

⁽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 2015		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, 2015			December 31, 2014			March 31, 2014			March 31, 2015
Net income attributable to common shareholders	$	6,941		$	47,055		$	12,066		$	41,930
Straight line adjustment for ground leases	1,201			4,835			1,212			4,824
Acquisition costs	—			1,058			—			1,058
Depreciation and amortization	15,866			58,974			13,783			61,057
Loss on impairment of collegiate housing assets	—			12,733			1,910			10,823
Gain on sale of collegiate housing assets	—			(33,231		)	(10,902		)	(22,329		)
Gain on insurance settlement	—			(8,133		)	—			(8,133		)
Interest expense	5,941			20,656			5,601			20,996
Amortization of deferred financing costs	516			2,156			503			2,169
Interest income	(38		)	(190		)	(70		)	(158		)
Interest on loan to participating development	—			(6,486		)	—			(6,486		)
Loss on extinguishment of debt	—			3,543			649			2,894
Income tax expense (benefit)	78			261			45			294
Noncontrolling interests	206			599			398			407
Adjusted EBITDA	$	30,711		$	103,830		$	25,195		$	109,346
Annualize acquisitions, developments and dispositions⁽¹⁾	—			—			—			7,350
Pro Forma Adjusted EBITDA	$	30,711		$	103,830		$	25,195		$	116,696

⁽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 2015		22



	COMMUNITY LISTING - OWNED

Name

Primary University Served

Acquisition/Development Date

# of Beds

Name

Primary University Served

Acquisition/Development Date

# of Beds

Players Club

Florida State University

Jan '05

336

Campus Village

Michigan State University

Oct '12

355

The Commons

Florida State University

Jan '05

732

The Province

Kent State University

Nov '12

596

University Towers

North Carolina State University

Jan '05

889

The Suites at Overton Park

Texas Tech University

Dec '12

465

The Reserve on Perkins

Oklahoma State University

Jan '05

732

The Centre at Overton Park

Texas Tech University

Dec '12

400

The Pointe

Pennsylvania State University

Jan '05

984

The Oaks on the Square

University of Connecticut

Aug '12, Aug '13

503

The Lofts

University of Central Florida

Jan '05

730

3949

Saint Louis University

Aug '13

256

The Reserve at Athens

University of Georgia

Jan '05

612

Central Hall I & II (ONE Plan)⁽²⁾

University of Kentucky

Aug '13

601

The Reserve at Columbia

University of Missouri

Jan '05

676

2400 Nueces (ONE Plan)

University of Texas at Austin

Aug '13

655

Commons at Knoxville

University of Tennessee

Jan '05

708

Roosevelt Point

Arizona State University- Downtown Phoenix

Aug '13

609

Campus Creek

University of Mississippi

Feb '05

636

The Retreat at Oxford

University of Mississippi

Aug '13

668

Campus Lodge

University of Florida

Jun '05

1,115

The Retreat at State College

Pennsylvania State University

Sept '13

587

Cape Trails

Southeast Missouri State University

Jan '06

360

The Cottages on Lindberg

Purdue University

Sept '13

745

Carrollton Crossing

University of West Georgia

Jan '06

336

The Varsity

University of Michigan

Dec '13

416

River Pointe

University of West Georgia

Jan '06

504

Total Same-Communities⁽¹⁾

23,079

The Reserve at Saluki Pointe

Southern Illinois University

Aug '08, Aug '09

768

University Village on Colvin (ONE Plan)

Syracuse University

Aug '09

432

The Lotus⁽¹⁾

University of Colorado, Boulder

Nov '11, Aug '14

235

GrandMarc at The Corner

University of Virginia

Oct '10

641

605 West⁽¹⁾

Duke University

Aug '14

384

Wertland Square

University of Virginia

Mar '11

152

109 Tower⁽¹⁾

Florida International University

Aug '14

542

Jefferson Commons

University of Virginia

Mar '11

The Oaks on the Square- Ph III⁽¹⁾

University of Connecticut

Aug '14

116

The Berk

University of California, Berkeley

May '11

165

Champions Court II (ONE Plan)⁽²⁾

University of Kentucky

Aug '14

427

University Village Towers

University of California, Riverside

Sept '11

554

Haggin Hall I (ONE Plan)⁽²⁾

University of Kentucky

Aug '14

396

Irish Row

University of Notre Dame

Nov '11

326

Champions Court I (ONE Plan)⁽²⁾

University of Kentucky

Aug '14

740

GrandMarc at Westberry Place (ONE Plan)

Texas Christian University

Dec '11

562

Woodland Glen I & II (ONE Plan)⁽²⁾

University of Kentucky

Aug '14

818

The Reserve on Stinson

University of Oklahoma

Jan '12

612

The District on Apache⁽³⁾

Arizona State University- Tempe

Sept '14

900

Campus West (ONE Plan)

Syracuse University

Aug '12

313

Total New-Communities

4,558

East Edge

University of Alabama

Aug '12

774

Total Owned-Communities

27,637

The Province

East Carolina University

Sept '12

728

The District on 5th

University of Arizona

Oct '12

764

⁽¹⁾ The same-community designation for leasing purposes is different than for financial reporting purposes. These communities, except for 601 design beds at Central Hall I & II, are considered same-community for 2015/2016 leasing purposes, as the Company managed the leasing process for the 2014/2015 lease cycle and is currently managing the leasing process for the 2015/2016 lease cycle. Total same-community beds for leasing purposes is 23,755.

⁽²⁾ The Kentucky communities, totaling 2,982 beds, are excluded from the leasing update on pages 10 and 11, as the assignment process does not occur until May.

⁽³⁾ This property is considered new for purposes of leasing, as we did not manage the leasing process for the 2014/2015 lease year.



FIRST QUARTER 2015		23



		INVESTOR RELATIONS



Executive Management
	Randy Churchey	Chief Executive Officer
	Tom Trubiana	President
	Bill Brewer	Chief Financial Officer
	Christine Richards	Chief Operating Officer
	J. Drew Koester	Chief Accounting Officer

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

Covering Analysts
	Firm	Analyst	Contact #	Email
	Bank of America - Merrill	Jana Galan	(646) 855-3081	jana.galan@baml.com
	Green Street Advisors	Dave Bragg	(949) 706-8142	dbragg@greenstreetadvisors.com
	Goldman Sachs	Andrew Rosivach	(212) 902-2796	andrew.rosivach@gs.com
	Hilliard Lyons	Carol Kemple	(502) 588-1839	ckemple@hilliard.com
	J.P. Morgan Securities Inc.	Anthony Paolone	(212) 622-6682	anthony.paolone@jpmorgan.com
	KeyBanc Capital Markets	Jordan Sadler	(917) 368-2280	jsadler@keybanccm.com
	MLV & Co., LLC	Ryan Meliker	(212) 542-5872	rmeliker@mlvco.com
	RBC Capital Market	Mike Salinsky	(440) 715-2648	mike.salinsky@rbccm.com
	Robert W Baird & Co.	Drew T. Babin	(215) 553-7816	dbabin@rwbaird.com
	Sandler O'Neill + Partners, L.P.	Alex Goldfarb	(212) 466-7937	agoldfarb@sandleroneill.com
	Stifel Nicolaus & Company Inc.	Rod Petrik	(443) 224-1306	rpetrik@stifel.com
	UBS Securities	Ross Nussbaum	(212) 713-2484	ross.nussbaum@ubs.com
	Wunderlich Securities	Craig Kucera	(540) 277-3366	ckucera@wundernet.com



FIRST QUARTER 2015		24



		DEFINITIONS




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

FFO	Funds from operations as defined by the National Association of Real Estate Investment Trusts.

GAAP	U.S. generally accepted accounting principles.

Net apartment rent per occupied bed (NarPOB)	Represents GAAP net apartment rent for the respective period divided by the sum of occupied beds in the portfolio for each month included in the period reported.

Net debt to EBITDA - adjusted	Net debt to EBITDA - adjusted is calculated to normalize the impact of non-producing construction debt. In the calculation, net debt is total debt less cash and excludes non-producing debt related to assets under development at time of calculation. EBITDA is Pro Forma Adjusted EBITDA, which includes proforma adjustments to reflect all acquisitions, dispositions and development assets that are open as if such had occurred at the beginning of the 12 month period being presented.

Operating expense per bed	Represents community-level operating expenses excluding management fees, depreciation and amortization.

Other income per available bed	Represents other GAAP-based income for the respective period divided by the sum of the design beds in the portfolio for each of the included months. Other income includes service/application fees, late fees, termination fees, parking fees, transfer fees, damage recovery, utility recovery, and other misc.

Physical occupancy	Represents a weighted average of the month end occupancies for each month included in the period reported.

Regional Definitions	Regions are defined as follows: Mid-Atlantic: North Carolina, Pennsylvania, Connecticut, New York, Virginia; Midwest: Oklahoma, Missouri; North: Michigan, Ohio, Indiana, Illinois; South Central: Texas, Tennessee, Mississippi, Kentucky; Southeast: Florida, Alabama, Georgia; West: Arizona, California, Colorado.

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

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



FIRST QUARTER 2015		25



		SAFE HARBOR

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Statements about the Company’s business that are not historical facts are “forward-looking statements,” which relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Forward-looking statements are based on current expectations. You should not rely on our forward-looking statements because the matters that they describe are subject to known and unknown risks and uncertainties that could cause the Company’s business, financial condition, liquidity, results of operations, Core FFO, FFO and prospects to differ materially from those expressed or implied by such statements. Such risks are set forth under the captions “Risk Factors,” “Forward-Looking Statements” and "Management’s Discussion and Analysis of Financial Condition and Results of Operations” (or similar captions) in our most recent Annual Report on Form 10-K and our quarterly reports on Form 10-Q, and as described in our other filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made, and, except as otherwise may be required by law, the Company undertakes no obligation to update publicly or revise any guidance or other forward-looking statement, whether as a result of new information, future developments, or otherwise except as required by law.



FIRST QUARTER 2015		26

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