Education Realty Trust, Inc. – Investor Presentation
November 2010
GrandMarc at the Corner (at UVA)
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(1)
Owned portfolio Including 3 joint venture communities that are also managed by the Company.
Repositioned High Quality Portfolio(1)
Currently 44 communities: over 27,800 beds
Repositioned portfolio 35 communities: over 24,000 beds
Excellent Long Term Relationships Should Lead
To Opportunities
Solid industry reputation
Extensive industry network
Over 40 years in student housing industry
Few competitors can match size and national footprint
Excellent Demographic Trends
U. S. enrollment expected to increase 1.5% annually
through 2016
External Growth Opportunities
ONE PlanSM on-campus developments for own account
Off-Campus developments for own account
Potential for acquisitions
Internal Growth Opportunities
Improve performance of current portfolio
Capital recycling program
University Towers, NC State University
The Reserve at Star Pass, University of Arizona
Leader in Collegiate Student Housing
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Leader in Collegiate Student Housing
(1)
After repositioning transactions.
(2)
Includes joint venture properties.
Campus Creek, University of Mississippi
The Commons, University of Tennessee
Solid Capital Structure/Meaningful Capacity for
Growth (as of September 30, 2010)
Debt/Gross Assets 43%
Interest Coverage Ratio 2.2x
Net Debt to EBITDA 7.4x
Debt Financing Covered through 2011
Acquisition Capacity >$200 million (1)
Profitable Third-Party Fee Businesses
Proven third-party development business
Awarded over $1.3 billion of new on-campus
developments since 2000
Over $330 million in developments currently
under contract or recently awarded
Stable third-party management business
Multi-year contracts (typically 2-5 years)
Supports strategic relationships with universities
23 managed properties / over 11,900 beds (2)
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Owned/JV Properties
Managed Properties
EDR is focused on key student housing markets. The strongest enrollment growth is expected in the Southeast and Southwest
regions, with a significant number of EDR’s properties located in these key areas. Approximately 67% of EDR’s EBITDA is from
properties located in states forecasted to increase enrollment by 1.25% or greater.
Market Leadership with Scale in the Student Housing Business
< 0.25%
0.25% to 1.25%
1.25% to 2%
> 2%
(increase in # of students)
High Quality Owned Portfolio
Source: Rosen Consulting LLC (March 2009).
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High Quality Owned Portfolio
Amenity Rich Assets with Geographic and University Diversification
Distance to Campus
EBITDA by State
Portfolio Average Distance to Campus - - 1.1 miles.
Percentage of Beds having a 1 to 1 Ratio to Baths – 69%.
Average Enrollment of Universities served – 29,500.
Average Age of Communities – 10 years.
Note: Reflects impact of recent transactions
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Recent Portfolio Repositioning
Pending Dispositions
9 communities, including 8 of the former Place
communities
$84.8 million sales price and $50.3 million in
net proceeds
Average enrollment of universities served
15,500
Acquisition of GrandMarc
At University of Virginia with enrollment of
24,400
Within 2 blocks of campus
Four years old
Average rental rate $670
Total purchase price of $45.5 million
Impact on Portfolio
Average enrollment of universities served
increases 15% to 29,500
5% improvement in average rental rate
$33.3 million reduction in mostly variable rate
debt with late 2013 and early 2014 maturities
GrandMarc at the Corner, University of Virginia
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Supply/Demand Should Lead to Net Operating Income Growth
Industry Growth Opportunities
Supply
Constrained
Credit crisis inhibited new construction.
Decreased state appropriations limit ability for many universities to update aging and
obsolete on-campus housing.
On-Campus housing capacity as a percentage of undergraduate enrollment decreased from
32% in 1990 to 25% in 2004.
Demand for Student Housing
Increasing Enrollment – 1.5% Annually through 2016
Echo Boom generation
Increasing percentage of high school graduates choosing to attend college.
College students are taking longer to graduate.
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External Growth Opportunities
The ONE PlanSM:
Exclusively designed for on-campus equity
ownership of student apartments
Provides EDR with attractive risk / returns due
to “best location”
Provides universities with needed new on-
campus housing while preserving capital
Increasing acceptance by universities
(Syracuse development and University of
Texas at Austin commencing construction in
2011 for delivery in 2013)
The ONE PlanSM - EDR’s On-Campus Equity Program
University Village Apartments, Syracuse University
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External Growth Opportunities
The ONE Plan – Plus
Creative structuring similar to The ONE PlanSM
Graduate Student Housing at Johns Hopkins – 572 bed,
$61 million development on University owned land
adjacent to campus, commencing construction in 2010
for delivery in 2012
EDR provided second mortgage financing collateralized
by a replenishing cash reserve fund.
Third party development fees and 10 year management
agreement
Off-Campus Developments for Own Account
University of Connecticut – 501 bed, $45 million
development adjacent to campus, commencing
construction in 2011 for delivery in 2012 and 2013
Pursuing numerous joint ventures with local and regional
developers
Potential for Acquisitions
Highly fragmented sector, ownership by small local
property owners/operators
Industry contacts and network will provide opportunities
Sources of acquisitions
Overleveraged acquirers
Overleveraged local or regional developers
Financial institutions
Institutions divesting from student housing business
Operating business; no “brand” support
Ability to move quickly versus lesser capitalized buyers
Acquisition capacity after repositioning >$200 million
Johns Hopkins
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Awarded project in July 2010
Currently negotiating ground lease
$64 million total project cost
Approximately 612 beds in 16 story high rise
collegiate community
Construction expected to start summer 2011
Anticipated opening in summer 2013
EDR will own and manage the asset subject to a
ground lease
The University of Texas at Austin
ONE PlanSM Project at the University of Texas
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Entered Development agreement September 2010
Two phases of collegiate housing with total cost of
approximately $45 million
290 units of studio, one, two and three bedroom
apartments
Part of $220 million mixed use town center next to
the University
Construction expected to start in 2011
Opening of Phase I expected for 2012 and Phase II
in 2013
EDR will own and manage the collegiate housing
component of the development
The project will establish an urban, community-
focused college town center for UConn and the city
of Mansfield
STORRS Center, University of Connecticut
Owned Development at the University of Connecticut
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Improve Performance of Current Portfolio
Reorganized and restructured
New Senior Vice President of Operations Christine
Richards
Streamlined and refocused operating group
Reallocated non operational support functions from
operating group (i.e. capital project management)
Improving certain key functions such as corporate
marketing leader
Reviewing other processes to drive efficiency and
effectiveness
Focused on Technology enhancements
Improved lease tracking and monitoring to maximize
not only occupancy but also rate
Upgraded property websites
Favorable Supply/Demand Characteristics
in Many Markets
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Solid Capital Structure
Debt to Gross Assets 43%
Net Debt to EBITDA 7.4x
Interest Coverage Ratio 2.2x
Debt Financing Covered through 2011
Acquisition Capacity >$200 million
Meaningful Capacity for Growth
Notes:
Maturity in 2011 relates to a construction loan that has a two year extension option which the Company expects to exercise.
Financial data as of September 30, 2010
Acquisition capacity is after repositioning transactions.
Debt Maturities
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Near-Term Outlook and 2010 Forecast
2010-2011 Lease Term Opening
2.3% improvement in occupancy; rates up
approximately 2%
Pricing power slightly better than prior year
Expect positive leasing for 2011/2012
Developments for Own Account
ONE PlanSM on-campus development near the
core of campus at the University of Texas at Austin
Off-Campus development adjacent to the
University of Connecticut
Third Party Fee Development
Credit markets improving
Began construction in 2010
Johns Hopkins
SUNY ESF
East Stroudsburg University
Mansfield University of Pennsylvania
Improved volume of requests for proposals being
received from universities
Acquisition Potential
$150 million acquisition capacity
Recently closed $45.5 million purchase of
GrandMarc
Seeing more volume of opportunities and uptick in
deals closing
The Commons on Kinnear, Ohio State University
The Reserve on Perkins, Oklahoma State University
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Investment Highlights
Repositioned High Quality Portfolio
Excellent Long Term Relationships Should Lead To
Opportunities
Excellent Demographic Trends
External Growth Opportunities
ONE PlanSM On-Campus Development for Own Account
ONE Plan - Plus On-Campus Development
Off-Campus Developments for Own Account
Potential for Acquisitions
Internal Growth Opportunities
Improve Performance of Current Portfolio
Reinvigorate Capital Recycling Program
Solid Capital Structure / Meaningful Capacity for
Growth
Profitable Third-Party Fee Businesses
The Reserve on West 31st, Kansas University
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Forward Looking Statements
This presentation includes certain statements, estimates and projections provided by EDR’s management with
respect to the anticipated future performance of EDR, including “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Such statements, estimates and projections reflect various assumptions by EDR’s management
concerning anticipated results and have been included solely for illustrative purposes.
Forward-looking statements can be identified by the use of the words “anticipate,” “believe,” “expect,” “intend,”
“may,” “might,” “plan,” “estimate,” “project,” “should,” “will,” “result,” and similar expressions. No representations are
made as to the accuracy of such statements, estimates or projections, which necessarily involve known and
unknown risks, uncertainties and other factors that, in some ways, are beyond management’s control. Such factors
include the risk factors discussed in the Company’s registration statement on Form S-3, annual report on Form 10-K
for the year ended December 31, 2009, and quarterly report on Form 10-Q for the period ended September 30,
2010, each as filed with the SEC. These risk factors include, but are not limited to risks and uncertainties inherent in
the national economy, the real estate industry in general, and in our specific markets; legislative or regulatory
changes including changes to laws governing REITS; our dependence on key personnel; rising insurance rates and
real estate taxes; changes in GAAP; and our continued ability to successfully lease and operate our properties.
Accordingly, actual results may vary materially from the projected results contained herein and you should not rely
on any forward-looking statements made herein or made in connection with this presentation. The Company shall
have no obligation or undertaking to update or revise any forward-looking statements to reflect any change in
Company expectations or results, or any change in events.
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