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VOL. 127 | NO. 39 | Monday, February 27, 2012

EdR Sees Q4 Net Loss of $5.8M

By Sarah Baker

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The same day Memphis-based EdR announced it would have a majority interest in developing, owning and managing a $36 million cottage-style community near the University of Mississippi, the collegiate housing company reported a fourth quarter net loss of $5.8 million compared to fourth quarter 2010.

That translates to a net loss of $0.07 per diluted share during Q4, compared to a net loss of $1.8 million, or $0.03 per diluted share, during the same period of 2010. EdR attributed the loss to an impairment charge of $7.9 million during the quarter.

Analysts were offered those totals during EdR’s Q4 and full-year 2011 conference call Thursday, Feb. 23, after market close.

But EdR’s Q4 net operating income reached $17.1 million, up 14.5 percent – or $2.2 million – from Q4 2010. Core funds from operations for the three months ended Dec. 31 was $12.5 million, compared to $9.5 million during the same period in 2010.

Full-year core funds from operations notched $32.7 million, a 25.4 percent increase from $26 million during 2010.

“Two years ago, we implemented a plan to create long-term value for our shareholders,” EdR President and CEO Randy Churchey said on the conference call with investors. “It started with a complete evaluation of the business, and resulted in us restructuring our property operations team, our processes and our information technology systems. These efforts, which were completed throughout 2010, have paid off handsomely, yielding market-leading leasing results for the last two years.”

Churchey added that same-store operating expenses have been tightly controlled and that EdR has shifted its focus to larger institutions with robust enrollment growth, as well as on collegiate housing communities that are on or closer to campuses.

“Over the last two years, we’ve purchased over $210 million of collegiate housing assets that met this criteria,” Churchey said. “In addition, we will be delivering over $311 million of owned developments in the summer of 2012 and 2013.”

Formerly known as Education Realty Trust Inc., the developer, owner and manager of collegiate housing changed its name to EdR – aligning it with its New York Stock Exchange ticker symbol, EDR – in January. EdR owns or manages 60 communities in 23 states, with more than 34,200 beds within more than 11,100 units.

During Q4, the University of Kentucky selected EdR to negotiate the potential revitalization and expansion of more than 9,000 residence-hall beds within the next seven years.

The first phase, which breaks ground this spring, includes EdR assuming management of the university’s 6,000 beds as well as the development, construction and ownership of a 601-bed, $25.8 million freshman honors housing community slated for an August 2013 opening.

EdR in Q4 bought four communities with 1,184 beds for $116.7 million. Eight communities were added in 2011 for $189.7 million.

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RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 57 307 5,073
MORTGAGES 101 483 6,709
FORECLOSURE NOTICES 22 77 1,556
BUILDING PERMITS 0 720 11,979
BANKRUPTCIES 84 341 5,300
BUSINESS LICENSES 36 125 2,061
UTILITY CONNECTIONS 152 594 7,058
MARRIAGE LICENSES 36 117 1,458

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