EX-99.2 3 q32017supplemental.htm EXHIBIT 99.2 THIRD QUARTER 2017 SUPPLEMENTAL Exhibit

q32017.jpg



tableofcontentsq32017a04.jpg


edrlogogreen.jpg
FINANCIAL HIGHLIGHTS

 (Amounts in thousands, except per share data, unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 OPERATING DATA:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
 
2017
 
2016
 
$ Chg
 
% Chg
 
2017
 
2016
 
$ Chg
 
% Chg
 
Same-community revenue
$
53,245

 
$
51,911

 
$
1,334

 
2.6
 %
 
$
172,311

 
$
168,993

 
$
3,318

 
2.0
 %
 
Total community revenue
71,085

 
61,877

 
9,208

 
14.9
 %
 
221,941

 
193,750

 
28,191

 
14.6
 %
 
Total revenue
75,360

 
66,225

 
9,135

 
13.8
 %
 
235,200

 
204,744

 
30,456

 
14.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-community net operating income
25,852

 
25,349

 
503

 
2.0
 %
 
100,162

 
99,719

 
443

 
0.4
 %
 
Total community net operating income
34,009

 
29,365

 
4,644

 
15.8
 %
 
125,650

 
110,183

 
15,467

 
14.0
 %
 
Total operating income
3,869

 
1,231

 
2,638

 
214.3
 %
 
30,935

 
30,933

 
2

 
—
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income attributable to EdR
(155
)
 
(3,533
)
 
3,378

 
(95.6
)%
 
22,062

 
30,791

 
(8,729
)
 
(28.3
)%
 
Per share - basic and diluted
$
(0.01
)
 
$
(0.05
)
 
$
0.04

 
(80.0
)%
 
$
0.27

 
$
0.45

 
$
(0.18
)
 
(40.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funds from operations (FFO)
22,192

 
18,664

 
3,528

 
18.9
 %
 
94,354

 
66,281

 
28,073

 
42.4
 %
 
Per weighted average share/unit (1)
$
0.30

 
$
0.25

 
$
0.05

 
20.0
 %
 
$
1.28

 
$
0.97

 
$
0.31

 
32.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Core funds from operations (Core FFO)
21,665

 
19,396

 
2,269

 
11.7
 %
 
96,725

 
79,761


16,964

 
21.3
 %
 
Per weighted average share/unit (1)
$
0.29

 
$
0.26

 
$
0.03

 
11.5
 %
 
$
1.31

 
$
1.17

 
$
0.14

 
12.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL RATIOS:
 
 
 
 
 
 
 
 
 
 
9/30/2017
 
12/31/2016
 
 
 
 
 
Debt to gross assets
24.7%
 
18.4%
 
 
 
 
 
Net debt to gross assets
23.6%
 
17.4%
 
 
 
 
 
Net debt to enterprise value
21.9%
 
13.5%
 
 
 
 
 
Interest coverage ratio (TTM)
11.2x
 
9.0x
 
 
 
 
 
Net debt to EBITDA - Adjusted (TTM)
3.0x
 
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.

THIRD QUARTER

1
edrlogogreen.jpg
BALANCE SHEET

(Amount in thousands, except share and per share data, unaudited)
 
 
 
 
 
 
 
September 30, 2017
 
December 31, 2016
 
 Assets
 
 
 
 
 
 
Collegiate housing properties, net (1)
 
$
2,453,702

 
$
2,108,706

 
 
Assets under development
 
348,653

 
289,942

 
 
Cash and cash equivalents
 
47,462

 
34,475

 
 
Restricted cash
 
6,020

 
7,838

 
 
Other assets
 
70,242

 
65,224

 
 Total assets
 
$
2,926,079

 
$
2,506,185

 
 
 
 
 
 
 
 Liabilities and equity
 
 
 
 
 
 Liabilities:
 
 
 
 
 
 
Unsecured debt, net of unamortized deferred financing costs
 
$
778,309

 
$
454,676

 
 
Mortgage and construction loans, net of unamortized deferred financing costs
 
29,772

 
62,520

 
 
Accounts payable and accrued expenses
 
181,676

 
127,872

 
 
Deferred revenue
 
32,479

 
20,727

 
 Total liabilities
 
1,022,236

 
665,795

 
 
 
 
 
 
 
 
 Commitments and contingencies
 
—

 
—

 
 
 
 
 
 
 
 Redeemable noncontrolling interests
 
55,171

 
38,949

 
 
 
 
 
 
 
 
 Equity:
 
 
 
 
 
 EdR stockholders' equity:
 
 
 
 
 
 
Common stock, $0.01 par value per share, 200,000,000 shares authorized, 75,751,216 and 73,075,455 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively
 
757

 
731

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

 
—

 
 
Additional paid-in capital
 
1,849,112

 
1,802,852

 
 
Retained earnings
 
—

 
—

 
 
Accumulated other comprehensive loss
 
(2,484
)
 
(3,564
)
 
 Total EdR stockholders' equity
 
1,847,385

 
1,800,019

 
 Noncontrolling interest
 
1,287

 
1,422

 
 Total equity
 
1,848,672

 
1,801,441

 
 Total liabilities and equity
 
$
2,926,079

 
$
2,506,185

 
(1) Amount is net of accumulated depreciation of $363,412 and $315,634, as of September 30, 2017 and December 31, 2016, respectively.

THIRD QUARTER

2
edrlogogreen.jpg
OPERATING RESULTS

(Amounts in thousands, except per share data, unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
2017
 
2016
 
$ Change
 
2017
 
2016
 
$ Change
Revenues:
 
 
 
 
 
 
 
 
 
 
 
     Collegiate housing leasing revenue
$
71,085

 
$
61,877

 
$
9,208

 
$
221,941

 
$
193,750

 
$
28,191

     Third-party development consulting services
1,222

 
778

 
444

 
4,193

 
1,728

 
2,465

     Third-party management services
858

 
965

 
(107
)
 
2,634

 
2,556

 
78

     Operating expense reimbursements
2,195

 
2,605

 
(410
)
 
6,432

 
6,710

 
(278
)
     Total revenues
75,360

 
66,225

 
9,135

 
235,200

 
204,744

 
30,456

Operating expenses:
 
 
 
 
 
 
 
 
 
 


     Collegiate housing leasing operations
37,076

 
32,512

 
4,564

 
96,291

 
83,567

 
12,724

     Development and management services
5,218

 
2,716

 
2,502

 
10,894

 
7,965

 
2,929

     General and administrative
2,582

 
2,489

 
93

 
8,724

 
7,991

 
733

     Development pursuit, acquisition costs and severance
238

 
212

 
26

 
861

 
898

 
(37
)
     Depreciation and amortization
22,449

 
22,336

 
113

 
72,808

 
58,951

 
13,857

     Ground lease expense
3,437

 
3,224

 
213

 
9,459

 
8,829

 
630

     Other operating income (1)
(1,704
)
 
(1,100
)
 
(604
)
 
(1,204
)
 
(1,100
)
 
(104
)
     Reimbursable operating expenses
2,195

 
2,605

 
(410
)
 
6,432

 
6,710

 
(278
)
     Total operating expenses
71,491

 
64,994

 
6,497

 
204,265

 
173,811

 
30,454

Operating income
3,869

 
1,231

 
2,638

 
30,935

 
30,933

 
2

Nonoperating (income) expenses:
 
 
 
 
 
 
 
 
 
 


     Interest expense, net of capitalized interest
4,284

 
3,811

 
473

 
10,374

 
12,109

 
(1,735
)
     Amortization of deferred financing costs
406

 
443

 
(37
)
 
1,185

 
1,380

 
(195
)
     Interest income
(17
)
 
(155
)
 
138

 
(66
)
 
(429
)
 
363

     Loss on extinguishment of debt
—

 
475

 
(475
)
 
22

 
10,611

 
(10,589
)
Total nonoperating expenses
4,673

 
4,574

 
99

 
11,515

 
23,671

 
(12,156
)
(Loss) income before equity in (losses) earnings of unconsolidated entities, income taxes and gain on sale of collegiate housing properties
(804
)
 
(3,343
)
 
2,539

 
19,420

 
7,262

 
12,158

Equity in (losses) earnings of unconsolidated entities
(243
)
 
(480
)
 
237

 
141

 
(617
)
 
758

(Loss) income before income taxes and gain on sale of collegiate housing properties
(1,047
)
 
(3,823
)
 
2,776

 
19,561

 
6,645

 
12,916

Income tax (benefit) expense
(416
)
 
84

 
(500
)
 
(948
)
 
224

 
(1,172
)
(Loss) income before gain on sale of collegiate housing properties
(631
)
 
(3,907
)
 
3,276

 
20,509

 
6,421

 
14,088

Gain on sale of collegiate housing properties
—

 
—

 
—

 
691

 
23,956

 
(23,265
)
Net (loss) income
(631
)
 
(3,907
)
 
3,276

 
21,200

 
30,377

 
(9,177
)
Less: Net loss attributable to the noncontrolling interests
(476
)
 
(374
)
 
(102
)
 
(862
)
 
(414
)
 
(448
)
Net (loss) income attributable to Education Realty Trust, Inc.
$
(155
)
 
$
(3,533
)
 
$
3,378

 
$
22,062

 
$
30,791

 
$
(8,729
)

THIRD QUARTER

3
edrlogogreen.jpg
OPERATING RESULTS

(Amounts in thousands, except per share data, unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
2017
 
2016
 
$ Change
 
2017
 
2016
 
$ Change
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
      Gain (loss) on cash flow hedging derivatives
367

 
1,651

 
(1,284
)
 
1,080

 
(2,837
)
 
3,917

Comprehensive income (loss) attributable to Education Realty Trust, Inc.
$
212

 
$
(1,882
)
 
$
2,094

 
$
23,142

 
$
27,954

 
$
(4,812
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings per share information:
 
 
 
 
 
 
 
 
 
 


Net (loss) income attributable to Education Realty Trust, Inc. common stockholders per share – basic and diluted (2)
$
(0.01
)
 
$
(0.05
)
 
$
0.04

 
$
0.27

 
$
0.45

 
$
(0.18
)
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares of common stock outstanding – basic
73,687

 
73,205

 
482

 
73,606

 
67,979

 
5,627

Weighted average shares of common stock outstanding – diluted
73,687

 
73,205

 
482

 
73,820

(3) 
68,281

(3) 
5,539

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Represents the change in fair value of contingent consideration liabilities associated with our 2016 acquisitions of Hub at Madison and Urbane.
(2) The numerator for earnings per share - diluted also includes $0.7 million and $1.9 million of accretion of redeemable noncontrolling interests for the three and nine months ended September 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.

THIRD QUARTER

4
edrlogogreen.jpg
FUNDS FROM OPERATIONS


(Amounts in thousands, except per share data, unaudited)
Three months ended September 30,
 
Nine months ended September 30,
 
 
2017
 
2016
 
$ Change
 
2017
 
2016
 
$ Change
Net (loss) income attributable to EdR
$
(155
)
 
$
(3,533
)
 
$
3,378

 
$
22,062

 
$
30,791

 
$
(8,729
)
 
Gain on sale of collegiate housing assets
—

 
—

 
—

 
(691
)
 
(23,956
)
 
23,265

 
Real estate related depreciation and amortization
21,911

 
21,616

 
295

 
71,316

 
57,424

 
13,892

 
Equity portion of real estate depreciation and amortization on equity investees
663

 
700

 
(37
)
 
2,010

 
2,023

 
(13
)
 
Noncontrolling interests
(227
)
 
(119
)
 
(108
)
 
(343
)
 
(1
)
 
(342
)
Funds from operations ("FFO") available to stockholders and unitholders
22,192

 
18,664

 
3,528

 
94,354

 
66,281

 
28,073

 
percent change
 
 
 
 
18.9
 %
 
 
 
 
 
42.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
FFO adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
Loss on extinguishment of debt
—

 
475

 
(475
)
 
22

 
10,611

 
(10,589
)
 
Acquisition costs
—

 
175

 
(175
)
 
27

 
413

 
(386
)
 
Change in fair value of contingent consideration liability (1)
(1,704
)
 
(1,100
)
 
(604
)
 
(1,204
)
 
(1,100
)
 
(104
)
 
Straight-line adjustment for ground leases (2)
1,177

 
1,182

 
(5
)
 
3,526

 
3,556

 
(30
)
FFO adjustments
(527
)
 
732

 
(1,259
)
 
2,371

 
13,480

 
(11,109
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Core funds from operations ("Core FFO") available to stockholders and unitholders
$
21,665

 
$
19,396

 
$
2,269

 
$
96,725

 
$
79,761

 
$
16,964

 
percent change
 
 
 
 
11.7
 %
 
 
 
 
 
21.3
 %
 
 
 
 
 
 


 
 
 
 
 
 
Earnings per share - diluted (3)
$
(0.01
)
 
$
(0.05
)
 
$
0.04

 
$
0.27

 
$
0.45

 
$
(0.18
)
 
percent change
 
 
 
 
(80.00
)%
 
 
 
 
 
(40.0
)%
FFO per weighted average share/unit (4)
$
0.30

 
$
0.25

 
$
0.05

 
$
1.28

 
$
0.97

 
$
0.31

 
percent change
 
 
 
 
20.0
 %
 
 
 
 
 
32.0
 %
Core FFO per weighted average share/unit (4)
$
0.29

 
$
0.26

 
$
0.03

 
$
1.31

 
$
1.17

 
$
0.14

 
percent change
 
 
 
 
11.5
 %
 
 
 
 
 
12.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares/units (4)
73,894

 
73,468

 
426

 
73,820

 
68,281

 
5,539

 
percent change
 
 
 
 
0.6
 %
 
 
 
 
 
8.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 

(1) Represents the change in fair value of contingent consideration liabilities associated with our 2016 acquisitions of Hub at Madison and Urbane.
(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 $0.7 million and $1.9 million of accretion of redeemable noncontrolling interests for the three and nine months ended September 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.

THIRD QUARTER

5
edrlogogreen.jpg
COMMUNITY OPERATING RESULTS


(Amounts in thousands, unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
 
2017
 
2016
 
$ Change
 
% Change
 
2017
 
2016
 
$ Change
 
% Change
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-communities(1)
$
53,245

 
$
51,911

 
$
1,334

 
2.6
%
 
$
172,311

 
$
168,993

 
$
3,318

 
2.0
%
 
New-communities(2)
16,092

 
7,154

 
8,938

 
NM

 
42,265

 
11,219

 
31,046

 
NM

 
Other-communities(3)
1,748

 
2,221

 
(473
)
 
NM

 
6,431

 
7,371

 
(940
)
 
NM

 
Sold-communities(4)
—

 
591

 
(591
)
 
NM

 
934

 
6,167

 
(5,233
)
 
NM

Total revenues
71,085

 
61,877

 
9,208

 
14.9
%
 
221,941

 
193,750

 
28,191

 
14.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses (5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-communities(1)
27,393

 
26,562

 
831

 
3.1
%
 
72,149

 
69,274

 
2,875

 
4.2
%
 
New-communities(2)
8,317

 
3,751

 
4,566

 
NM

 
19,134

 
6,079

 
13,055

 
NM

 
Other-communities(3)
1,366

 
1,615

 
(249
)
 
NM

 
4,177

 
4,523

 
(346
)
 
NM

 
Sold-communities(4)
—

 
584

 
(584
)
 
NM

 
831

 
3,691

 
(2,860
)
 
NM

Total operating expenses
37,076

 
32,512

 
4,564

 
14.0
%
 
96,291

 
83,567

 
12,724

 
15.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net operating income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-communities(1)
25,852

 
25,349

 
503

 
2.0
%
 
100,162

 
99,719

 
443

 
0.4
%
 
New-communities (2)
7,775

 
3,403

 
4,372

 
NM

 
23,131

 
5,140

 
17,991

 
NM

 
Other-communities(3)
382

 
606

 
(224
)
 
NM

 
2,254

 
2,848

 
(594
)
 
NM

 
Sold-communities(4)
—

 
7

 
(7
)
 
NM

 
103

 
2,476

 
(2,373
)
 
NM

Total net operating income
$
34,009

 
$
29,365

 
$
4,644

 
15.8
%
 
$
125,650

 
$
110,183

 
$
15,467

 
14.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Same-communities are defined as those communities that have been open and operating for the whole time in the current and prior periods and are not conducting substantial development or redevelopment activities or have other significant changes in design beds. See page 32 of this supplement for a listing of same-communities.
(2) See page 33 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.


THIRD QUARTER

6
edrlogogreen.jpg
SAME-COMMUNITY EXPENSES BY CATEGORY

(Amounts in thousands, except bed and per-bed data, unaudited)
 
Three months ended September 30, 2017
 
Three months ended September 30, 2016
 
 
 
 
 
Amount
 
Per Bed
 
% of Total Operating Expenses
 
Amount
 
Per Bed
 
% of Total Operating Expenses
 
$ Change
 
% Change
Utilities(1)
$
6,987

 
$
267

 
26
%
 
$
6,815

 
$
260

 
26
%
 
$
172

 
2.5
 %
On-Site Payroll
4,197

 
160

 
15
%
 
4,379

 
167

 
16
%
 
(182
)
 
(4.2
)%
General & Administrative(2)
3,401

 
130

 
12
%
 
3,204

 
122

 
12
%
 
197

 
6.1
 %
Maintenance & Repairs(3)
5,577

 
213

 
20
%
 
5,623

 
215

 
21
%
 
(46
)
 
(0.8
)%
Marketing
1,134

 
43

 
4
%
 
1,011

 
39

 
4
%
 
123

 
12.2
 %
Total Direct Operating Expenses
$
21,296

 
$
813

 
77
%
 
$
21,032

 
$
803

 
79
%
 
$
264

 
1.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Taxes
5,585

 
213

 
21
%
 
4,962

 
190

 
19
%
 
623

 
12.6
 %
Insurance
512

 
20

 
2
%
 
568

 
22

 
2
%
 
(56
)
 
(9.9
)%
Total Fixed Operating Expenses
$
6,097

 
$
233

 
23
%
 
$
5,530

 
$
212

 
21
%
 
$
567

 
10.3
 %
Total Property Operating Expenses
$
27,393

 
$
1,046

 
100
%
 
$
26,562

 
$
1,015

 
100
%
 
$
831

 
3.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2017
 
Nine months ended September 30, 2016
 
 
 
 
 
Amount
 
Per Bed
 
% of Total Operating Expenses
 
Amount
 
Per Bed
 
% of Total Operating Expenses
 
$ Change
 
% Change
Utilities(1)
$
19,890

 
$
760

 
28
%
 
$
19,525

 
$
746

 
28
%
 
$
365

 
1.9
 %
On-Site Payroll
12,114

 
463

 
17
%
 
12,340

 
472

 
18
%
 
(226
)
 
(1.8
)%
General & Administrative(2)
9,620

 
368

 
13
%
 
9,439

 
361

 
14
%
 
181

 
1.9
 %
Maintenance & Repairs(3)
9,434

 
361

 
13
%
 
9,049

 
346

 
13
%
 
385

 
4.3
 %
Marketing
2,771

 
106

 
4
%
 
2,753

 
105

 
4
%
 
18

 
0.7
 %
Total Direct Operating Expenses
$
53,829

 
$
2,058

 
75
%
 
$
53,106

 
$
2,030

 
77
%
 
$
723

 
1.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Taxes
16,787

 
642

 
23
%
 
14,467

 
553

 
21
%
 
2,320

 
16.0
 %
Insurance
1,533

 
59

 
2
%
 
1,701

 
65

 
2
%
 
(168
)
 
(9.9
)%
Total Fixed Operating Expenses
$
18,320

 
$
701

 
25
%
 
$
16,168

 
$
618

 
23
%
 
$
2,152

 
13.3
 %
Total Property Operating Expenses
$
72,149

 
$
2,759

 
100
%
 
$
69,274

 
$
2,648

 
100
%
 
$
2,875

 
4.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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.

THIRD QUARTER

7
edrlogogreen.jpg
COMMUNITY OPERATIONS - TRAILING FIVE QUARTERS

(Amounts in thousands, except beds and per bed amounts)
Three Months Ended
 
Total / Weighted Average - Trailing Twelve Months
 
 
 
September 30, 2016
 
December 31, 2016
 
March 31, 2017
 
June 30, 2017
 
September 30, 2017
 
2017 Same Communities
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
51,911

 
$
64,900

 
$
63,492

 
$
55,574

 
$
53,245

 
$
237,211

 
Operating Expenses
 
26,562

 
22,181

 
21,871

 
22,886

 
27,393

 
94,331

 
Net Operating Income
 
$
25,349

 
$
42,719

 
$
41,621

 
$
32,688

 
$
25,852

 
$
142,880

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

 
78,501

 
78,501

 
78,501

 
78,501

 
314,004

 
Occupancy(1)
 
88.7
%
 
96.8
%
 
95.3
%
 
82.3
 %
 
87.8
%
 
90.6
%
 
Net Apartment Rent per Occupied Bed
 
$
671

 
$
810

 
$
800

 
$
799

 
$
695

 
$
777

 
Other Income per Occupied Bed
 
75

 
44

 
48

 
61

 
78

 
57

 
Total Revenue per Occupied Bed
 
$
746

 
$
854

 
$
848

 
$
860

 
$
773

 
$
834

 
Operating Expense per Available Bed
 
$
338

 
$
283

 
$
279

 
$
292

 
$
349

 
$
300

 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017 New Communities
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
7,154

 
$
11,795

 
$
13,647

 
$
12,526

 
$
16,092

 
$
54,060

 
Operating Expenses
 
3,751

 
3,673

 
5,076

 
5,741

 
8,317

 
22,807

 
Net Operating Income
 
$
3,403

 
$
8,122

 
$
8,571

 
$
6,785

 
$
7,775

 
$
31,253

 
Margin
 
48
%
 
69
%
 
63
%
 
54
 %
 
48
%
 
58
%
 
Beds
 
11,039

 
14,175

 
17,833

 
18,138

 
24,144

 
74,290

 
Occupancy(1)
 
86.9
%
 
89.6
%
 
89.2
%
 
77.5
 %
 
83.3
%
 
84.5
%
 
Net Apartment Rent per Occupied Bed
 
$
663

 
$
871

 
$
803

 
$
820

 
$
721

 
$
794

 
Other Income per Occupied Bed
 
83

 
58

 
55

 
71

 
79

 
67

 
Total Revenue per Occupied Bed
 
$
746

 
$
929

 
$
858

 
$
891

 
$
800

 
$
861

 
Operating Expense per Available Bed
 
$
340

 
$
259

 
$
285

 
$
317

 
$
344

 
$
307

 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017 Other Communities(2)
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
2,221

 
$
3,090

 
$
3,021

 
$
1,662

 
$
1,748

 
$
9,521

 
Operating Expenses
 
1,615

 
1,508

 
1,475

 
1,336

 
1,366

 
5,685

 
Net Operating Income
 
$
606

 
$
1,582

 
$
1,546

 
$
326

 
$
382

 
$
3,836

 
Margin
 
27
%
 
51
%
 
51
%
 
20
 %
 
22
%
 
40
%
 
Beds
 
3,675

 
3,675

 
3,675

 
3,339

 
2,667

 
13,356

 
Occupancy(1)
 
69.1
%
 
87.8
%
 
87.2
%
 
42.3
 %
 
66.6
%
 
72.1
%
 
Net Apartment Rent per Occupied Bed
 
$
692

 
$
903

 
$
883

 
$
899

 
$
765

 
$
870

 
Other Income per Occupied Bed
 
182

 
54

 
59

 
278

 
219

 
119

 
Total Revenue per Occupied Bed
 
$
874

 
$
957

 
$
942

 
$
1,177

 
$
984

 
$
989

 
Operating Expense per Available Bed
 
$
439

 
$
410

 
$
401

 
$
400

 
$
512

 
$
426

 
 
 
 
 
 
 
 
 
 
 
 
 
 

THIRD QUARTER

8
edrlogogreen.jpg
COMMUNITY OPERATIONS - TRAILING FIVE QUARTERS

(Amounts in thousands, except beds and per bed amounts)
Three Months Ended
 
Total / Weighted Average - Trailing Twelve Months
 
 
 
September 30, 2016
 
December 31, 2016
 
March 31, 2017
 
June 30, 2017
 
September 30, 2017
 
2017 Sold Communities
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
591

 
$
652

 
$
625

 
$
309

 
$
—

 
$
1,586

 
Operating Expenses
 
584

 
449

 
455

 
375

 
—

 
1,279

 
Net Operating Income (Loss)
 
$
7

 
$
203

 
$
170

 
$
(66
)
 
$
—

 
$
307

 
Margin
 
1
%
 
31
%
 
27
%
 
(21
)%
 
—
%
 
19
%
 
Beds
 
1,836

 
1,836

 
1,836

 
1,224

 
—

 
4,896

 
Occupancy(1)
 
61.4
%
 
61.4
%
 
61.4
%
 
63.1
 %
 
—
%
 
61.8
%
 
Net Apartment Rent per Occupied Bed
 
$
472

 
$
563

 
$
530

 
$
372

 
$
—

 
$
502

 
Other Income per Occupied Bed
 
53

 
15

 
24

 
27

 
—

 
21

 
Total Revenue per Occupied Bed
 
$
525

 
$
578

 
$
554

 
$
399

 
$
—

 
$
523

 
Operating Expense per Available Bed
 
$
318

 
$
244

 
$
248

 
$
307

 
$
—

 
$
261

 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017 Total Communities
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
61,877

 
$
80,437

 
$
80,785

 
$
70,071

 
$
71,085

 
$
302,378

 
Operating Expenses
 
32,512

 
27,811

 
28,877

 
30,338

 
37,076

 
124,102

 
Net Operating Income
 
$
29,365

 
$
52,626

 
$
51,908

 
$
39,733

 
$
34,009

 
$
178,276

 
Margin
 
47
%
 
65
%
 
64
%
 
57
 %
 
48
%
 
59
%
 
Beds
 
95,051

 
98,187

 
101,845

 
101,202

 
105,312

 
406,546

 
Occupancy(1)
 
87.2
%
 
94.8
%
 
93.3
%
 
79.9
 %
 
86.2
%
 
88.5
%
 
Net Apartment Rent per Occupied Bed
 
$
668

 
$
819

 
$
800

 
$
800

 
$
702

 
$
780

 
Other Income per Occupied Bed
 
79

 
46

 
50

 
66

 
81

 
60

 
Total Revenue per Occupied Bed
 
$
747

 
$
865

 
$
850

 
$
866

 
$
783

 
$
840

 
Operating Expense per Available Bed
 
$
342

 
$
283

 
$
284

 
$
300

 
$
352

 
$
305

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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.

THIRD QUARTER

9
edrlogogreen.jpg
LEASING RESULTS SUMMARY



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

 
9.3
%
 
83.4
%
 
81.2
%
 
2.2
 %
 
(2.6
)%
 
 
     Prior Year Occupancy 90% to 96.9% (Tier 2)
3,697

 
11.0
%
 
92.8
%
 
94.0
%
 
(1.2
)%
 
1.2
 %
 
 
     Prior Year Occupancy 97% and Above (Tier 3)
22,644

 
79.7
%
 
97.7
%
 
99.5
%
 
(1.8
)%
 
3.9
 %
 
 
Total Same-Communities (1)
30,387

 
100.0
%
 
95.2
%
 
96.4
%
 
(1.2
)%
 
3.0
 %
 
 
Total Other-Communities (2)
889

 
 
 
99.4
%
 
 
 
 
 
 
 
 
Total New-Communities (3)
5,144

 
 
 
89.2
%
 
 
 
 
 
 
 
 
Total Communities
36,420

 
 
 
94.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTE: The same-community designation for leasing purposes is different than for financial statement 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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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 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 32 of 26,167 plus (2) 4,220 design beds on communities that are considered same for leasing purposes (see note 1 on page 33).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2) Other-communities includes University Towers, serving North Carolina State University.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(3) 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), SkyVue (824 beds) Sawtooth Hall (656), University Flats (771), Lewis Hall (346) and The Woods (417), plus (3) our 2017 acquisitions of Retreat at Corvallis (1,016 beds) and 319 Bragg (305 beds).

THIRD QUARTER

10
edrlogogreen.jpg
SAME-COMMUNITY LEASING RESULTS BY REGION AND DISTANCE


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

 
22.6
%
 
96.2
%
 
98.1
%
 
(1.9
)%
 
4.9
 %
Midwest
1,664

 
2.9
%
 
86.4
%
 
82.7
%
 
3.7
 %
 
(1.6
)%
North
4,243

 
12.6
%
 
95.1
%
 
95.3
%
 
(0.2
)%
 
0.1
 %
South Central
10,983

 
36.4
%
 
93.2
%
 
96.1
%
 
(2.9
)%
 
3.1
 %
Southeast
4,001

 
10.6
%
 
99.5
%
 
99.9
%
 
(0.4
)%
 
2.9
 %
West
3,738

 
14.9
%
 
98.5
%
 
98.4
%
 
0.1
 %
 
3.9
 %
Total Same-Communities
30,387

 
100.0
%
 
95.2
%
 
96.4
%
 
(1.2
)%
 
3.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-Communities - by Distance from Campus
 
 
 
 
 
 
 
 
 
 
 
0-0.2 miles
20,057

 
73.4
%
 
95.8
%
 
98.6
%
 
(2.8
)%
 
3.7
 %
0.21-0.49 miles
2,720

 
8.0
%
 
91.6
%
 
90.8
%
 
0.8
 %
 
(2.1
)%
0.5-0.99 miles
2,041

 
5.9
%
 
91.6
%
 
87.2
%
 
4.4
 %
 
2.3
 %
1.0-1.99 miles
3,709

 
9.0
%
 
94.4
%
 
92.5
%
 
1.9
 %
 
2.5
 %
2.0 & > miles
1,860

 
3.7
%
 
99.3
%
 
99.6
%
 
(0.3
)%
 
2.1
 %
Total Same-Communities
30,387

 
100.0
%
 
95.2
%
 
96.4
%
 
(1.2
)%
 
3.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
(1) See definition of regions on page 36.


THIRD QUARTER

11
edrlogogreen.jpg
TOP EdR MARKETS AND STATES BY REVENUE

q32017suppl_chart-27787.jpg
*The data above is based on revenue for the twelve months ended September 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.

THIRD QUARTER

12
edrlogogreen.jpg
TOP EdR MARKETS AND STATES BY REVENUE


q32017suppl_chart-30959.jpg

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


THIRD QUARTER

13
edrlogogreen.jpg
NEW SUPPLY AND ENROLLMENT - EdR MARKETS

EdR Market Supply, Enrollment and Revenue Growth                            

 
 
 
 
 
 
 
 
 
 
 
 
 
EdR Markets:
 
2013
 
2014
 
2015
 
2016
 
2017 (1)
 
2018 Est (2)
New supply as % of enrollment
 
2.2
%
 
2.2
%
 
2.0
%
 
1.8
 %
 
2.1
 %
 
1.8
%
Enrollment growth
 
1.3
%
 
1.4
%
 
1.5
%
 
1.5
 %
 
1.4
 %
 
1.4
%
 
 
0.9
%
 
0.8
%
 
0.5
%
 
0.3
 %
 
0.7
 %
 
0.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-community:
 
 
 
 
 
 
 
 
 
 
 
 
Occupancy increase (decrease)
 
3.0
%
 
2.0
%
 
0.4
%
 
(1.1
)%
 
(1.2
)%
 
 
Rate increase
 
2.0
%
 
2.0
%
 
3.4
%
 
3.4
 %
 
3.0
 %
 
 
Total leasing revenue growth
 
5.0
%
 
4.0
%
 
3.8
%
 
2.3
 %
 
1.8
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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.
(2) Data includes the existing portfolio plus 2018 developments. The estimated enrollment growth is based on the 3-year enrollment CAGR through 2016 for the included communities.



















THIRD QUARTER

14
edrlogogreen.jpg
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 as a % of Enrollment
Variance
West
15%
19%
1.8%
2.8%
(1.0)%
Mid Atlantic
20%
22%
1.5%
2.2%
(0.7)%
North
17%
15%
0.2%
1.2%
(1.0)%
South Central
29%
29%
1.7%
1.0%
0.7%
Southeast
12%
9%
1.1%
2.5%
(1.4)%
Midwest
7%
6%
2.0%
1.9%
0.1%
     Total
100%
100%
1.4%
1.8%
(0.4)%
 
 
 
 
 
 
 
 
 
 
 
 

Projected 2018 New Supply Sorted by Percentage Increase
 
University Markets with >5% Increase in 2018 Supply as a % of Enrollment
 
 
 
 
 
 
 
 
New Supply Growth
University Markets
EdR Beds
Pro Forma
EdR NOI %(1)
 
University
New Supply Increase
Pro Forma EdR NOI %(1)
0%
42%
47%
48%
 
Arizona State University - Phoenix
5.2%
9%
0.1% to 1.0%
3%
1%
1%
 
Florida State University/Florida A&M
7.2%
2%
1.0% - 3.0%
33%
26%
25%
 
Syracuse University
6.3%
2%
3.0% - 5.0%
11%
10%
10%
 
University of Mississippi
6.3%
2%
> 5.0%
11%
16%
16%
 
Northern Michigan University
6.0%
1%
     Total
100%
100%
100%
 
 
 
16%
 
 
 
 
 
 
 
 
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 36.


THIRD QUARTER

15
edrlogoa01a02a02.gif
COMPLETED 2017 DELIVERIES



(Amounts in thousands, except bed counts)
 
 
 
 
 
 
 
 
 
August 2017 Delivered Communities
 
 
 
 
Project
Project Type
Bed Count
Budgeted Total Project Development Cost
EdR's Ownership Percentage
 
University of Kentucky - University Flats
ONE Plan (1)
771

$
74,000

100%
 
Boise State University - Sawtooth Hall
ONE Plan (1)
656

39,800

100%
 
University of Kentucky - Lewis Hall
ONE Plan (1)
346

26,900

100%
 
Michigan State University - SkyVue
Joint Venture
824

89,900

90%
 
Texas State University - The Local: Downtown
Joint Venture
304

29,600

80%
 
Northern Michigan University - The Woods
ONE Plan (1)
417

25,700

100%
 
            Total - August 2017 Delivered Communities
 
3,318

$
285,900

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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.
 
NOTE: We estimate that 2017 delivered developments will be completed approximately $4 million under budget.


THIRD QUARTER

16
edrlogogreen.jpg
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
Budgeted Total Project Development Cost
 
EdR's Economic Ownership Cost(1)
 
 
EdR's Remaining Cost to be Funded
 
Northern Michigan University - The Woods
ONE Plan (3)
100%
433

In progress
January 2018
$
24,600

 
$
24,600

 
$
24,600

 
$
5,400

 
University of Pittsburgh
Joint Venture
80%
723

In progress
Summer 2018
106,100

 
84,900

 
100,300

 
63,300

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

In progress
Summer 2018
38,000

 
38,000

 
38,000

 
34,500

 
Northern Michigan University - The Woods
ONE Plan (3)
100%
379

In progress
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

 
64,300

 
Arizona State University - Union at Tempe
Joint Venture
90%
839

In progress
Summer 2018
164,900

 
148,400

 
159,100

 
91,500

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

In progress
Summer 2018
86,000

 
86,000

 
86,000

 
72,200

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

In progress
Summer 2018
28,200

 
19,700

 
25,700

 
18,300

 
Iowa State University - Union on Lincoln Way
Joint Venture
70%
542

In progress
Summer 2018
51,900

 
36,300

 
47,300

 
34,900

 
            Total - 2018 Deliveries
 
 
5,316

 
 
$
626,600

 
$
516,800

 
$
593,500

 
$
413,400

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
University of Hawai'i - Hale Mahana
Joint Venture
90%
589

In progress
Fall 2018 or 2019
$
109,600

 
$
98,600

 
$
106,300

 
$
68,800

 
            Total - 2019 Deliveries
 
 
589

 
 
$
109,600

 
$
98,600

 
$
106,300

 
$
68,800

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oklahoma State University - One on 4th
Joint Venture
70%
475

In progress
TBD
$
47,200

 
$
33,000

 
$
43,700

 
$
12,500

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Active Projects
 
 
6,380

 
 
$
783,400

 
$
648,400

 
$
743,500

 
$
494,700

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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.


THIRD QUARTER

17
edrlogogreen.jpg
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

 
2018 Development Deliveries
 
627

 
594

 
181

 
413

 
2019 Development Deliveries
 
110

 
106

 
37

 
69

 
TBD Deliveries
 
47

 
44

 
31

 
13

 
 
 
$
800

 
$
760

 
$
249

 
$
511

 
 
 
 
 
 
 
 
 
 
 
Estimated Capital Sources:
 
 
 
 
 
 
 
 
 
 
 
 
 
2017
 
Thereafter
 
Capital Sources
 
Equity Proceeds Available from ATM Forward Sales(3)
 
 
 
$
93

 
$
99

 
$
192

 
Additional Debt, Including Draws on Revolving Credit Facility(4)
 
 
 
56

 
263

 
319

 
 
 
 
 
$
149

 
$
362

 
$
511

 
 
 
 
 
 
 
 
 
 
 
Debt to Gross Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2017
 
Pro Forma for Funding Needs Through December 31, 2017(5)
 
Pro Forma Assuming All Funding Completed(6)
 
Debt to gross assets
 
 
 
25%
 
25%
 
29%
 
 
 
 
 
 
 
 
 
 
 
NOTE: This analysis demonstrates that EdR could fund all announced acquisitions and developments as of September 30, 2017 and our debt to gross assets is still less than 30%.

(1) Represents the second closing of Urbane which will close in the fourth quarter of 2017.
(2) Represents the share of development cost that is funded by EdR's balance sheet, which excludes any partner contributions - see page 17 for details.
(3) Represents available proceeds from completed but unsettled forward sales through September 2017 under the ATM. The Company has the option of settling the 4.8 million completed forward shares sold and any additional sales under the current authorization at any time prior to December 31, 2018.
(4) The balance on the revolving credit facility as of September 30, 2017 was $194.0 million.
(5) Represents pro forma September 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 September 30, 2017 in the manner shown in the estimated capital sources table above.

THIRD QUARTER

18
edrlogogreen.jpg
THIRD-PARTY DEVELOPMENT SUMMARY


(Amounts in thousands, except bed counts)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
THIRD-PARTY PROJECTS
 
 
 
 
 
 
Delivered Project
Bed Count
Project Development Cost
Total Project Fees
Fees Earned Prior Year (1)
Fees Earned Nine Months Ended
September 30, 2017 (1)
 
East Stroudsburg University - Pennsylvania Ph II
488

$
45,349

$
1,374

$
338

$
1,036

 
Texas A&M - Commerce
490

29,925

1,260

210

1,050

 
Shepherd University
298

22,385

1,025

395

630

 
     Total
1,276

$
97,659

$
3,659

$
943

$
2,716

 
 
 
 
 
 
 
 
Recently Awarded
Anticipated Completion Date
 
 
 
 
University of South Florida - St. Petersburg
Fall 2019 or 2020
 
 
 
 
University of South Carolina
Fall 2020 - 2024
 
 
 
 
 
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. A previously announced third-party development at Thomas More College has been removed from the schedule above, as the Board of Trustees of Thomas More College did not approve the transaction.
 
(1) Amount may not tie to third-party development services revenue on the statement of operations as this schedule only includes development and construction oversight fees earned on projects during the period. The fees earned above do not include $1.4 million of our portion of cost savings recognized as additional development fees during the nine months ended September 30, 2017. In addition, the schedule above does not reflect $2.5 million of cost overruns recognized in development and management services expenses related to unforeseen circumstances on one of the third-party developments.
 
 



THIRD QUARTER

19
edrlogogreen.jpg
CAPITAL STRUCTURE

 
 
 
 
 
 
 
 
 
 
as of September 30, 2017
 
 
 
 
 
Principal Outstanding
Weighted Average Interest Rate
Average Term to Maturity (in years)
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Debt to Gross Assets
 
 
 
 
 
 
Debt(1)
$
811,272

 
 
 
Variable Rate - Construction Debt
$
29,772

3.0
%
0.1

 
Gross Assets(2)
3,289,491

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

2.9
%
4.3

 
Debt to Gross Assets
24.7
%
 
 
 
Fixed Rate - 7 Yr. Unsecured Term Loan(5)
122,500

3.5
%
3.3

 
 
 
 
 
 
Fixed Rate - 12 Yr. Unsecured Senior Notes
75,000

4.2
%
11.9

 
Net Debt to Gross Assets
 
 
 
 
Fixed Rate - 15 Yr. Unsecured Senior Notes
75,000

4.3
%
14.9

 
     Net Debt
$
763,810

 
 
 
Fixed Rate - Unsecured Senior Notes
250,000

4.6
%
7.2

 
Gross Assets(3)
3,242,029

 
 
 
Variable Rate - Unsecured Revolving Credit Facility
194,000

2.5
%
1.1

 
Net Debt to Gross Assets
23.6
%
 
 
 
Debt(1) / Weighted Average
$
811,272

3.7
%
5.8

 
 
 
 
 
 
Less: Cash
47,462

 
 
 
Net Debt to Enterprise Value
 
 
 
 
Net Debt
$
763,810

 
 
 
     Net Debt
$
763,810

 
 
 
 
 
 
 
 
     Market Equity (4)
2,729,744

 

 
Interest Coverage (TTM)(6)
11.2x
 
 
 
Enterprise Value
$
3,493,554

 

 
Net Debt to EBITDA - Adjusted (TTM)(7)
3.0x
 
 
 
 
 
 

 
Variable Rate Debt to Total Debt
27.6%
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Debt to Enterprise Value
21.9
%
 
 
 
Undrawn Forward Equity Proceeds(8)
$
192,071

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Excludes unamortized deferred financing costs of $3.2 million.
(2) Excludes accumulated depreciation of $363.4 million.
(3) Excludes accumulated depreciation of $363.4 million and cash of $47.5 million.

(4) Market equity includes 75,751,216 shares of the Company's common stock and 222,737 units outstanding, which are convertible into common shares, and is calculated using $35.93 per share, the closing price of the Company's common stock on September 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 $153.1 million divided by interest expense, net of capitalized interest of $13.7 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 September 30, 2017. The 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.

THIRD QUARTER

20
edrlogogreen.jpg
CAPITAL STRUCTURE


q32017suppl_chart-28013.jpg
NOTE: At September 30, 2017, the Trust had $192.1 million of undrawn proceeds from shares sold under ATM forward agreements.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average Interest Rate of Debt Maturing Each Year (3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017
 
2018
 
2019
 
2020
 
2021
 
2022
 
2023
 
2024
 
2025
 
2026
 
2027
 
2028
 
2029
 
2030
 
2031
 
2032
Fixed Rate Debt
 
—%
 
—%
 
—%
 
—%
 
3.5%
 
2.9%
 
—%
 
4.6%
 
—%
 
—%
 
—%
 
—%
 
4.2%
 
—%
 
—%
 
4.3%
Variable Rate Debt
 
3.0%
 
2.5%
 
—%
 
—%
 
—%
 
—%
 
—%
 
—%
 
—%
 
—%
 
—%
 
—%
 
—%
 
—%
 
—%
 
—%
Total Debt
 
3.0%
 
2.5%
 
—%
 
—%
 
3.5%
 
2.9%
 
—%
 
4.6%
 
—%
 
—%
 
—%
 
—%
 
4.2%
 
—%
 
—%
 
4.3%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) The unsecured revolving credit facility has an initial maturity of November 19, 2018 and has a one-year extension option that may be exercised if certain conditions are met.
(2) The Company has $150 million of unsecured private placement notes outstanding with an average interest rate of 4.26%. The notes are evenly split between a 12-year and a 15-year maturity.
(3) 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.

THIRD QUARTER

21
edrlogogreen.jpg
 
UNSECURED SENIOR NOTE COVENANTS

as of September 30, 2017
 
 
 
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
Unsecured Senior Note Covenants(1)
Requirement
 
Current Ratio
 
Total Debt to Total Asset Value
≤ 60%
 
24.7%
 
Secured Debt to Total Asset Value
≤ 40%
 
0.9%
 
Unencumbered Asset Value to Unsecured Debt
> 150%
 
411.3%
 
Interest Coverage
> 1.5x
 
5.4x
 
 
 
 
 
 
 
 
 
 
 
Calculation of Interest Coverage Ratio:
 
 
 
 
Adjusted Pro Forma EBITDA - TTM:
 
 
 
 
EdR Adjusted EBITDA(2)
$
153,144

 
 
 
Pro forma Adjustments - acquisitions & dispositions (1)
1,634

 
 
 
Total Adjusted Pro Forma EBITDA - TTM
$
154,778


 
 
 
 
 
 
 
Pro Forma Interest Expense - TTM:
 
 
 
 
Interest expense, net of capitalized interest
$
13,719

 
 
 
Add back: Capitalized interest
11,475

 
 
 
Pro forma adjustments(1)
3,420

 
 
 
Pro forma interest expense - TTM
$
28,614


 
 
 
 
 
 
 
Interest Coverage
5.4x

 
 
 
 
 
 
 
 
(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.


THIRD QUARTER

22
edrlogogreen.jpg
RECONCILIATION OF NON-GAAP MEASURES


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

(Amounts in thousands)
 
Nine Months
 
Plus: Year
 
Less: Nine
 
Trailing Twelve
 
 
 
Ended
 
Ended
 
Months Ended
 
Months Ended
 
 
 
September 30, 2017
 
December 31, 2016
 
September 30, 2016
 
September 30, 2017
 
Net income attributable to common shareholders
 
$
22,062

 
$
44,924

 
$
30,791

 
$
36,195

 
Straight line adjustment for ground leases
 
3,526

 
4,731

 
3,556

 
4,701

 
Acquisition costs
 
27

 
619

 
413

 
233

 
Depreciation and amortization
 
72,808

 
81,413

 
58,951

 
95,270

 
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
 
10,374

 
15,454

 
12,109

 
13,719

 
Amortization of deferred financing costs
 
1,185

 
1,731

 
1,380

 
1,536

 
Interest income
 
(66
)
 
(490
)
 
(429
)
 
(127
)
 
Loss on extinguishment of debt
 
22

 
10,611

 
10,611

 
22

 
Income tax (benefit) expense
 
(948
)
 
684

 
224

 
(488
)
 
Other operating (income) expense - change in fair value of contingent consideration liability
 
(1,204
)
 
1,046

 
(1,100
)
 
942

 
Noncontrolling interests
 
(862
)
 
(220
)
 
(414
)
 
(668
)
 
Adjusted EBITDA
 
$
106,233

 
$
139,047

 
$
92,136

 
$
153,144

 
Annualize acquisitions, developments and dispositions(1)
 
—

 
—

 
—

 
16,185

 
Pro Forma Adjusted EBITDA
 
$
106,233

 
$
139,047

 
$
92,136

 
$
169,329

 
 
 
 
 
 
 
 
 
 
 
(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.

THIRD QUARTER

23
edrlogogreen.jpg
RECONCILIATION OF NON-GAAP MEASURES


Net operating income (NOI)
(Amounts in thousands)
Three months ended September 30,
 
Nine months ended September 30,
 
2017
 
2016
 
2017
 
2016
Operating income
$
3,869

 
$
1,231

 
$
30,935

 
$
30,933

Less: Third-party development services revenue
1,222

 
778

 
4,193

 
1,728

Less: Third-party management services revenue
858

 
965

 
2,634

 
2,556

Less: Other operating income
1,704

 
1,100

 
1,204

 
1,100

Plus: Development and management services expenses
5,218

 
2,716

 
10,894

 
7,965

Plus: General and administrative expenses, development pursuit, acquisition costs and severance
2,820

 
2,701

 
9,585

 
8,889

Plus: Ground leases
3,437

 
3,224

 
9,459

 
8,829

Plus: Depreciation and amortization
22,449

 
22,336

 
72,808

 
58,951

NOI
$
34,009

 
$
29,365

 
$
125,650

 
$
110,183


Debt to gross assets
(Amounts in thousands)
 
September 30, 2017
 
December 31, 2016
Unsecured debt, excluding unamortized deferred financing costs of $3,191 and $2,824 as of September 30, 2017 and December 31, 2016, respectively
 
$
781,500

 
$
457,500

Mortgage and construction loans, excluding unamortized deferred financing costs of $56 as of December 31, 2016
 
29,772

 
62,576

Total debt, excluding unamortized deferred financing costs
 
$
811,272

 
$
520,076

 
 
 
 
 
Total assets
 
$
2,926,079

 
$
2,506,185

Accumulated depreciation(1)
 
363,412

 
315,634

Gross assets
 
$
3,289,491

 
$
2,821,819

 
 
 
 
 
Debt to gross assets
 
24.7
%
 
18.4
%
(1) Represents accumulated depreciation on real estate assets.

 
 
 
 


THIRD QUARTER

24
edrlogogreen.jpg
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
$
40,550

 
$
43,550

 
 
 
 
Real estate related depreciation and amortization
94,000

 
94,000

Equity portion of real estate depreciation and amortization on equity investees
2,700

 
2,700

Gain on sale of collegiate housing assets
(691
)
 
(691
)
Noncontrolling interests
(330
)
 
(330
)
Funds from operations ("FFO") available to stockholders and unitholders
$
136,229

 
$
139,229

 
 
 
 
FFO adjustments:
 
 
 
Loss on extinguishment of debt
22

 
22

Acquisition costs
27

 
27

Change in fair value of contingent consideration liability (1)
(1,204
)
 
(1,204
)
Straight-line adjustment for ground leases (2)
4,700

 
4,700

FFO adjustments
3,545

 
3,545

 
 
 
 
Core funds from operations ("Core FFO") available to stockholders and unitholders
$
139,774

 
$
142,774

 
 
 
 
Earnings per share – diluted (3)
$
0.51

 
$
0.55

 
 
 
 
FFO per weighted average share/unit (4)
$
1.83

 
$
1.87

 
 
 
 
Core FFO per weighted average share/unit (4)
$
1.88

 
$
1.92

 
 
 
 
Weighted average shares/units (4)
74,500

 
74,500

 
 
 
 
 
 
 
 
(1) This represents the fair value adjustment for The Hub at Madison and 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.

THIRD QUARTER

25
edrlogogreen.jpg
UPDATED 2017 GUIDANCE

(Amounts in millions, except per share data)
 
 
 
 
 
 
 
 
2017 Revised Guidance Assumptions
 
 
 
 
$
 
Shares
 
Per Share
 
Notes
Midpoint of Core FFO per Original Guidance
 
 
$
149.8

 
76.8

 
$
1.95

 
 
 
 
 
 
 
 
 
 
 
 
Same-community NOI items:
 
 
 
 
 
 
 

 
January to July
$
(0.3
)
 
 
 
 
 
 
 
 
August to December
(3.2
)
 
 
 
 
 
 
 
 
Sale of Oklahoma community
(0.6
)
 
 
 
 
 
 
 
 
 
 
 
(4.1
)
 
 
 
 
 
The 2.8% reduction in same-community NOI is primarily due to the previously disclosed reduction in 2017/2018 lease term revenue growth from 4% (midpoint of original guidance) to 1.8% (midpoint of updated guidance) as a result of lower than expected opening occupancies for the communities at Texas Tech University, Syracuse University, the University of Mississippi and the University of Kentucky, and the sale of our University of Oklahoma community that was not in original guidance.

 
 
 
 
 
 
 
 
 
 
New-community NOI items:
 

 
 

 
 
 
 
2016 Acquisitions / Developments
$
(2.7
)
 
 
 
 
 
 
 
The reduction in guidance for new community NOI from 2016 Acquisitions/Developments is primarily attributed to our University of Wisconsin community, including a $0.6 million (5%) shortfall in 2017/2018 lease term revenue and $1.9 million increase in expenses, primarily real estate taxes. Real estate tax expense has been recorded at the assessed amount, but the assessment is being appealed.

Removal of 2017 TBD Acquisitions
(1.0
)
 
 
 
 
 
 
 
Reduction in new community NOI from 2017 Acquisitions is the result of the reduction in 2017 acquisitions from $100 million at midpoint, to $28 million actual.

2017 Developments - Oklahoma State University
(1.4
)
 
 
 
 
 
 
 
Postponement of the delivery of the off-campus development at Oklahoma State University.

2017 Developments
(1.2
)
 

 
 
 
 
 
The reduction in guidance for new community NOI from 2017 Developments other than Oklahoma State University is primarily due to the new delivery at Michigan State University, which opened the 2017/2018 lease term 64% occupied.
 
 
 
(6.3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other-community NOI
 
 
1.3

 
 
 
 
 
Increase in other community NOI at University Towers, the off-campus freshman style dorm serving North Carolina State University, as a result of achieving 2017/2018 opening occupancy of almost 100% compared to original guidance of 50%.

Third-party development fees
 
 
1.1

 
 
 
 
 
Third-party development fees in excess of guidance, primarily related to incentive development fees earned from completing two third-party developments under budget.

General and administrative expense
 
 
(1.8
)
 
 
 
 
 
Primarily the $2.5 million accrual of expenses related to third-party development construction cost overruns. Any future recoveries will be recognized when realized.

All other, net
 
 
1.3

 
 
 
 
 
The net impact of all other non-community related items; primarily non-controlling interests and income taxes.

Lower Share Count Guidance
 
 
 
 
(2.3
)
 
 
 
The estimated weighted average shares outstanding during 2017 has been revised downward by 2.3 million shares to 74.5 million, and the estimated total shares outstanding at December 31, 2017 has been revised downward by 6 million shares to 78.8 million. The reduction in weighted average shares outstanding and total shares outstanding is directly attributable to changes in the total amount of capital required in 2017 to maintain our goal of debt to gross assets of 25% at the end of each quarter. This reduction is primarily as a result of the $72 million reduction in estimated 2017 acquisitions, the unbudgeted sale of our University of Oklahoma community which generated $18 million in proceeds and the timing of development spending.

Midpoint of Core FFO Revised Guidance
 
 
$
141.3

 
74.5

 
$
1.90

 
 


THIRD QUARTER

26
edrlogogreen.jpg
UPDATED 2017 GUIDANCE

(Amounts in millions, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Core FFO
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Original Guidance
 
Updated Guidance
 
Difference
 
 
 
Low
 
High
 
Low
 
High
 
Low
 
High
 
% Change
 
Core FFO
 
$
146.0

 
$
153.5

 
$
139.8

 
$
142.8

 
$
(6.2
)
 
$
(10.7
)
 
 
 
Midpoint
 
$149.8
 
$141.3
 
$(8.5)
 
(5.7
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Core FFO per share/unit
 
$
1.90

 
$
2.00

 
$
1.88

 
$
1.92

 
$
(0.02
)
 
$
(0.08
)
 
 
 
Midpoint
 
$1.95
 
$1.90
 
$(0.05)
 
(2.6
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Core FFO Growth - Midpoint
 
21.8%
 
14.9%
 
 
 
 
 
 
 
Core FFO per Share/Unit Growth - Midpoint
 
10.4%
 
7.3%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Full year weighted average shares
 
76.8
 
74.5
 
(2.3)
 
(3.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total shares outstanding at January 1, 2016
 
73.6
 
73.6
 
—
 
 
 
Total shares outstanding at December 31, 2016
 
84.8
 
78.8
 
(6.0)
 
(7.1
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Community Net Operating Income Guidance Assumptions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Original Guidance
 
Updated Guidance
 
Difference
 
 
 
Low
 
High
 
Low
 
High
 
Low
 
High
 
% Change
 
Same Communities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue - full year
 
$
242.8

 
$
245.0

 
$
237.7

 
$
238.3

 
$
(5.1
)
 
$
(6.7
)
 
 
 
Midpoint
 
$243.9
 
$238.0
 
$(5.9)
(1) 
(2.4
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth - full year
 
2.5
%
 
3.5
%
 
1.6
%
 
1.9
%
 
(0.9
)%
 
(1.6
)%
 
 
 
Midpoint
 
3.0%
 
1.8%
 
(1.2)%
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SS revenue growth pacing:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First Quarter
 
1.0%
 
1.4%
 
0.4%
 
 
 
Second Quarter
 
2.5%
 
2.1%
 
(0.4)%
 
 
 
Third Quarter
 
4.5%
 
2.6%
 
(1.9)%
 
 
 
Fourth Quarter
 
4.0%
 
1.4%
 
(2.6)%
 
 
 

THIRD QUARTER

27
edrlogogreen.jpg
UPDATED 2017 GUIDANCE

 
 
Original Guidance
 
Updated Guidance
 
Difference
 
 
 
Low
 
High
 
Low
 
High
 
Low
 
High
 
% Change
 
Operating expense - full year
 
$
96.2

 
$
97.2

 
$
94.6

 
$
95.2

 
$
(1.6
)
 
$
(2.0
)
 
 
 
Midpoint
 
$96.7
 
$94.9
 
$(1.8)
(1) 
(1.9
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating expense growth - full year
 
3.0
%
 
4.0
%
 
3.5
%
 
4.1
%
 
0.5
 %
 
0.1
 %
 
 
 
Midpoint
 
3.5%
 
3.8%
 
0.3%
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SS operating expense growth pacing:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First Quarter
 
6.0%
 
5.1%
 
(0.9)%
 
 
 
Second Quarter
 
3.0%
 
4.5%
 
1.5%
 
 
 
Third Quarter
 
3.0%
 
3.1%
 
0.1%
 
 
 
Fourth Quarter
 
2.0%
 
3.8%
 
1.8%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Direct operating expenses
 
1.0
%
 
2.0
%
 
1.0
%
 
1.5
%
 
—
 %
 
(0.5
)%
 
 
 
Fixed operating expenses
 
9.0
%
 
11.0
%
 
12.0
%
 
13.4
%
 
3.0
 %
 
2.4
 %
 
 
 
Real estate taxes within fixed operating expenses
 
13.0
%
 
15.0
%
 
14.5
%
 
15.0
%
 
1.5
 %
 
—
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOI - full year
 
$
146.6

 
$
147.8

 
$
142.8

 
$
143.4

 
$
(3.8
)
 
$
(4.4
)
 
 
 
Midpoint
 
$147.2
 
$143.1
 
$(4.1)
(1) 
(2.8
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOI growth - full year
 
2.0
%
 
3.0
%
 
0.2
%
 
0.7
%
 
(1.8
)%
 
(2.3
)%
 
 
 
Midpoint
 
2.5%
 
0.5%
 
(2.0)%
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SS NOI growth pacing:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First Quarter
 
(2.0)%
 
(0.5)%
 
1.5%
 
 
 
Second Quarter
 
2.0%
 
0.4%
 
(1.6)%
 
 
 
Third Quarter
 
6.0%
 
2.0%
 
(4.0)%
 
 
 
Fourth Quarter
 
5.0%
 
0.1%
 
(4.9)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same Community growth - rest of year:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue - last 5 months
 
3.5
%
 
4.5
%
 
1.3
%
 
2.3
%
 
(2.2
)%
 
(2.2
)%
 
 
 
Midpoint
 
4.0%
 
1.8%
 
(2.2)%
 
 
 

THIRD QUARTER

28
edrlogogreen.jpg
UPDATED 2017 GUIDANCE

 
 
Original Guidance
 
Updated Guidance
 
Difference
 
 
 
Low
 
High
 
Low
 
High
 
Low
 
High
 
% Change
 
Fourth Quarter:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
4.0%
 
1.4%
 
(2.6)%
 
 
 
Operating Expense
 
2.0%
 
3.8%
 
1.8%
 
 
 
NOI
 
5.0%
 
0.1%
 
(4.9)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) The reduction from original same-community revenue, operating expense and NOI guidance includes, $2.6 million, $2.0 million and $0.6 million respectively for the removal of The Reserve on Stinson, which was sold in June of 2017.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New Communities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New Community NOI
 
$
42.8

 
$
44.6

 
$
37.2

 
$
37.6

 
$
(5.6
)
 
$
(7.0
)
 
 
 
Midpoint
 
$43.7
 
$37.4
 
$(6.3)
 
(14.4
)%
(2) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Comprised of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOI on 2017 developments and acquisitions
 
$
17.4

 
$
18.7

 
$
14.8

 
$
15.0

 
$
(2.6
)
 
$
(3.7
)
 
 
 
NOI on 2016 developments and acquisitions
 
$
29.5

 
$
30.0

 
$
26.5

 
$
26.7

 
$
(3.0
)
 
$
(3.3
)
 
 
 
Preopening expenses
 
$4.1
 
$4.1
 
$—
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2) $2.7 million relates to reduced acquisition guidance and delay of Oklahoma State University
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Communities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Community NOI
 
$2.0
 
$3.3
 
$1.3
 
65.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preopening expenses related to redevelopment of Players Club, included in above
 
$0.4
 
$0.4
 
$—
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Third Party Development and Management Fees
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Original Guidance
 
Updated Guidance
 
Difference
 
 
Low
 
High
 
Low
 
High
 
Low
 
High
 
% Change
 
Third party development fees
 
$3.4
 
$
4.4

 
$
4.7

 
$1.0
 
$
1.3

 
33.3
 %
 
Third party management fees
 
$3.2
 
$3.5
 
$0.3
 
9.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

THIRD QUARTER

29
edrlogogreen.jpg
UPDATED 2017 GUIDANCE

G&A and Nonoperating Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Original Guidance
 
Updated Guidance
 
Difference
 
 
Low
 
High
 
Low
 
High
 
Low
 
High
 
% Change
 
Interest expense before capitalized interest and including amortization of deferred financing costs
 
$
32.0

 
$
33.0

 
$
29.3

 
$
29.7

 
$
(2.7
)
 
$
(3.3
)
 
 
 
Midpoint
 
$32.5
 
$29.5
 
$(3.0)
 
(9.2
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalized interest
 
$
14.4

 
$
16.2

 
$
12.2

 
$
12.6

 
$
(2.2
)
 
$
(3.6
)
 
 
 
Midpoint
 
$15.3
 
$12.4
 
$(2.9)
 
(19.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
General and administrative expenses (including management and development services)
 
$
24.0

 
$
25.5

 
$
26.2

 
$
27.0

 
$
2.2

 
$
1.5

 
 
 
Midpoint
 
$24.8
 
$26.6
 
$1.8
 
7.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ground lease expense
 
$13.5
 
$13.4
 
$(0.1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Straight line ground rent add back to Core FFO
 
$4.7
 
$4.7
 
$—
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$90.6
 
$95.3
 
$4.7
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization add back to Core FFO
 
$88.2
 
$93.2
 
$5.0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Original Guidance
 
Updated Guidance
 
Difference
 
 
 
 
 
Low
 
High
 
Low
 
High
 
Low
 
High
 
 
 
Income tax expense
 
$0.4
 
$(0.7)
 
$(1.1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity in earnings of unconsolidated entities
 
$0.7
 
$0.5
 
$(0.2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Core FFO depreciation add back related to unconsolidated entities above
 
$2.5
 
$2.7
 
$0.2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss attributable to noncontrolling interests
 
$0.8
 
$1.2
 
$0.4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling interest reduction adjustment to FFO
 
$0.3
 
$0.3
 
$—
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

THIRD QUARTER

30
edrlogogreen.jpg
UPDATED 2017 GUIDANCE

Potential Capital Transactions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Original Guidance
 
Updated Guidance
 
 
 
 
 
 
 
 
 
Low
 
High
 
Low
 
High
 
 
 
 
 
 
 
Acquisitions
 
$
75.0

 
$
125.0

 
$28.7
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dispositions
 
$—
 
$17.7
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity issuances, including settling ATM forward
 
$400
 
$190
 
 
 
 
 
 
 
 
 
11.2 million shares
 
5.0 million shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First Quarter
 
$—
 
$—
 
 
 
 
 
 
 
Second Quarter
 
$110
 
$—
 
 
 
 
 
 
 
Third Quarter
 
$205
 
$110
 
 
 
 
 
 
 
Fourth Quarter
 
$85
 
$93
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Private placement notes offering
 
$150 on 7/1/17 at 4.5%
 
$150 on 9/1/17 at 4.3%
 
 
 
 
 
 
 


THIRD QUARTER

31
edrlogogreen.jpg
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)
 
University of Kentucky
 
Aug '13
 
301

Commons at Knoxville
 
University of Tennessee
 
Jan '05
 
708

 
Herman Lee Donovan Hall (ONE
Plan)
 
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)
 
University of Kentucky
 
Aug '14
 
740

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

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

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

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

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

 
Chellgren Hall (ONE Plan)
 
University of Kentucky
 
Aug '14
 
409

Irish Row
 
University of Notre Dame
 
Nov '11
 
326

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

Campus Village
 
Michigan State University
 
Oct '12
 
355

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

The Province
 
Kent State University
 
Nov '12
 
596

 
Woodland Glen V (ONE Plan)
 
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


THIRD QUARTER

32
edrlogogreen.jpg
COMMUNITY LISTING - OWNED

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

 
Sawtooth Hall (ONE Plan)
 
Boise State University
 
Aug '17
 
656

Lokal(1)
 
Colorado State University
 
March '16
 
194

 
Lewis Hall (ONE Plan)
 
University of Kentucky
 
Aug '17
 
346

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

 
SkyVue
 
Michigan State University
 
Aug '17
 
824

Holmes Hall (ONE Plan)(1)
 
University of Kentucky
 
Aug '16
 
645

 
The Local: Downtown
 
Texas State University
 
Aug '17
 
304

Boyd Hall (ONE Plan)(1)
 
University of Kentucky
 
Aug '16
 
496

 
The Woods (ONE Plan)
 
Northern Michigan University
 
Aug '17
 
417

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

 
 
 
Total New-Communities
 
 
 
9,364

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

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

 
Other-Communities
 
 
 
 
 

Urbane(2)
 
University of Arizona
 
Sept '16
 
311

 
University Towers(3)
 
North Carolina State
University
 
Jan '05
 
889

Retreat at Corvallis(2)
 
Oregon State University
 
Jan '17
 
1,016

 
 
 
Total Other-Communities
 
 
 
889

319 Bragg(2)
 
Auburn University
 
Feb '17
 
305

 
 
 
 
 
 
 
 
University Flats (ONE Plan)
 
University of Kentucky
 
Aug '17
 
771

 
 
 
Total Owned-Communities
 
 
 
36,420

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(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 30,387.
(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) 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, and is reflected as an other-community in the final leasing results.

THIRD QUARTER

33
edrlogogreen.jpg
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
 
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


THIRD QUARTER

34
edrlogogreen.jpg
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.


THIRD QUARTER

35
edrlogogreen.jpg
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.


THIRD QUARTER

36