Education Realty Trust 8-K EdR ANNOUNCES FOURTH QUARTER 2011 RESULTS

EdR

FOURTH QUARTER 2011

SUPPLEMENTAL FINANCIAL INFORMATION

TABLE OF CONTENTS

Financial Highlights	1
Balance Sheet	2
Operating Results	3
General and Administrative Expense Detail	4
Funds From Operations	5
Wholly-Owned Community Operating Results	6
Wholly-Owned Community Statistics	7
Same-Community Statistics	8
Preleasing Update	9
Development Update	10
Capital Structure	11
Community Listing - Wholly-Owned	12
Investor Information	13
Definitions	14
Safe Harbor Statement	15

EdR

FINANCIAL HIGHLIGHTS

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

OPERATING DATA:

	Three months ended December 31,												Year ended December 31,
	2011			2010			$ Chg			% Chg			2011			2010			$ Chg			% Chg
Same-community revenue	$	27,593		$	25,766		$	1,827			7.1	%	$	99,906		$	95,492		$	4,414			4.6	%
Total community revenue		31,976			26,784			5,192			19.4	%		109,404			96,510			12,894			13.4	%
Total revenue		35,737			31,948			3,789			11.9	%		125,447			116,701			8,746			7.5	%
Same-community net operating income		17,128			14,961			2,167			14.5	%		52,583			49,483			3,100			6.3	%
Community net operating income		20,035			15,695			4,340			27.7	%		58,794			50,217			8,577			17.1	%
Total operating income (loss)		(697	)		3,557			(4,254	)		NM			7,249			12,855			(5,606	)		-43.6	%
Net income (loss)		(5,779	)		(1,818	)		(3,961	)		NM			(11,014	)		(42,058	)		31,044			NM
Per share - basic & diluted		(0.07	)		(0.03	)		(0.04	)		NM			(0.15	)		(0.73	)		0.59			NM
Funds from operations (FFO)		10,651			5,542			5,109			92.2	%		24,470			21,264			3,206			15.1	%
Per weighted average share/unit (1)		0.12			0.09			0.03			33.3	%		0.32			0.36			(0.04	)		-11.1	%
Core funds from operations (Core FFO)		12,547			9,478			3,069			32.4	%		32,661			26,045			6,616			25.4	%
Per weighted average share/unit (1)	$	0.14		$	0.16		$	(0.02	)		-12.5	%	$	0.43		$	0.44		$	(0.01	)		-2.3	%

BALANCE SHEET DATA:

	12/31/2011			12/31/2010
Debt to gross assets		31.3	%		41.5	%
Net debt to enterprise value		22.9	%		43.9	%
Interest coverage ratio (TTM)		2.7			2.2

(1) FFO and Core FFO per share/unit were computed using weighted average shares and partnership units outstanding, regardless of their dilutive impact.

See page 5 for detailed calculation.

1

EdR

BALANCE SHEET

(Amount in thousands, except share data)

	December 31, 2011			December 31, 2010
	(unaudited)
Assets
Collegiate housing properties, net (1)	$	803,519		$	652,603
Collegiate housing properties - held for sale (2)		-			45,044
Assets under development		56,648			1,146
Cash and cash equivalents		75,813			6,958
Restricted cash		4,826			4,791
Other assets		37,003			26,138
Total assets	$	977,809		$	736,680
Liabilities and equity
Liabilities:
Mortgage and construction loans, net of unamortized premium/discount	$	358,504		$	367,631
Unsecured revolving line of credit		-			-
Secured revolving line of credit		-			3,700
Accounts payable and accrued expenses		31,766			18,324
Deferred revenue		14,409			12,243
Total liabilities		404,679			401,898
Commitments and contingencies		-			-
Redeemable noncontrolling interests		9,776			10,039
Equity:
Stockholders' equity:
Common stock, $0.01 par value, 200,000,000 shares authorized,
91,800,688 and 58,657,056 shares issued and outstanding
December 31, 2011 and 2010, respectively		918			587
Preferred shares, $0.01 par value, 50,000,000 shares authorized,
no shares issues and outstanding		-			-
Additional paid-in capital		662,657			414,850
Accumulated deficit		(101,708	)		(90,694	)
Total EdR stockholders' equity		561,867			324,743
Noncontrolling interests		1,487			-
Total equity		563,354			324,743
Total liabilities and stockholders' equity	$	977,809		$	736,680

(1) Amount is net of accumulated depreciation of $166,336 and $145,315 as of December 31, 2011 and December 31, 2010, respectively

(2) Amount is net of accumulated depreciation of $11,043 as of December 31, 2010.

2

EdR

OPERATING RESULTS

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

	Three Months Ended December 31,									Year Ended December 31,
	2011			2010			$ Change			2011			2010			$ Change
Revenues:
Collegiate housing leasing revenue	$	31,976		$	26,784		$	5,192		$	109,404		$	96,510		$	12,894
Third-party development services		622			808			(186	)		4,103			2,483			1,620
Third-party management services		911			854			57			3,336			3,189			147
Operating expense reimbursements		2,228			3,502			(1,274	)		8,604			14,519			(5,915	)
Total revenues		35,737			31,948			3,789			125,447			116,701			8,746
Operating expenses:
Collegiate housing leasing operations		11,941			11,089			852			50,610			46,293			4,317
Development and management services (1)		1,392			1,369			23			5,506			5,268			238
General and administrative (1)		2,876			2,678			198			10,421			9,695			726
Severance, development pursuit and acquisition costs		336			1,693			(1,357	)		595			2,438			(1,843	)
Ground leases		1,401			1,016			385			5,498			1,528			3,970
Depreciation and amortization		8,401			7,044			1,357			29,105			25,021			4,084
Loss on impairment of collegiate housing assets		7,859			-			7,859			7,859			-			7,859
Reimbursable operating expenses		2,228			3,502			(1,274	)		8,604			13,603			(4,999	)
Total operating expenses		36,434			28,391			8,043			118,198			103,846			14,352
Operating income (loss)		(697	)		3,557			(4,254	)		7,249			12,855			(5,606	)
Nonoperating expenses:
Interest expense		4,415			5,023			(608	)		18,242			19,787			(1,545	)
Amortization of deferred financing costs		314			284			30			1,244			1,192			52
Interest income		(46	)		(13	)		(33	)		(175	)		(414	)		239
Loss on extinguishment of debt		-			-			-			351			-			351
Total nonoperating expenses		4,683			5,294			(611	)		19,662			20,565			(903	)
Loss before equity in earnings (losses) of unconsolidated entities, income taxes and discontinued operations		(5,380	)		(1,737	)		(3,643	)		(12,413	)		(7,710	)		(4,703	)
Equity in earnings (losses) of unconsolidated entities		(39	)		(18	)		(21	)		(447	)		(260	)		(187	)
Loss before income taxes and discontinued operations		(5,419	)		(1,755	)		(3,664	)		(12,860	)		(7,970	)		(4,890	)
Less: Income tax (benefit) expense		183			175			8			(95	)		442			(537	)
Loss from continuing operations		(5,602	)		(1,930	)		(3,672	)		(12,765	)		(8,412	)		(4,353	)
Income (loss) from discontinued operations		2			308			(306	)		1,990			(33,879	)		35,869
Net loss		(5,600	)		(1,622	)		(3,978	)		(10,775	)		(42,291	)		31,516
Less: Net income (loss) attributable to the noncontrolling interests		179			196			(17	)		239			(233	)		472
Net loss attributable to EdR	$	(5,779	)	$	(1,818	)	$	(3,961	)	$	(11,014	)	$	(42,058	)	$	31,044
Earnings per share information:
Net loss attributable to EdR common shareholders per share - basic and diluted	$	(0.07	)	$	(0.03	)	$	(0.04	)	$	(0.15	)	$	(0.73	)	$	0.58
Weighted-average common shares outstanding - basic and diluted		85,790			58,714						75,485			57,536

(1) See note on page 4 regarding presentation of general and administrative costs.

3

EdR

General and Administrative Expense Detail

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

Note: This schedule provides more clarity on the composition of our general and administrative costs. Historically we have presented all general and administrative costs, including regional and corporate costs of supporting our communities, as one line in our income statement. However, beginning in 2012 we intend to report the management services - owned G&A costs as part of our collegiate housing operating costs and not as part of G&A. We believe the new presentation will improve comparability within the industry and provide a better reflection of the total cost to operate a property. If this new presentation had been implemented for all periods presented, our same-community operating expenses per bed on page 8 would have been $194 and $198 and the same-community operating margins would have been 58.2% and 54.1% for the fourth quarter of 2011 and 2010, respectively. And on a year to date basis, operating expenses per bed would have been $216 and $210 and the operating margins would have been 48.4% and 47.6% for 2011 and 2010, respectively.

	Three Months Ended December 31,							Year Ended December 31,
	2011		2010		$ Change			2011			2010		$ Change
Management services - third-party (1)	$	684	$	642	$	42		$	2,667		$	2,553	$	114
Development consulting services		708		727		(19	)		2,839			2,715		124
Development and management services - third-party		1,392		1,369		23			5,506			5,268		238
Management services - owned (1)		1,080		1,012		68			4,206			4,028		178
Corporate general and administrative		1,796		1,666		130			6,215			5,667		548
General and administrative - non third-party		2,876		2,678		198			10,421			9,695		726
Total general and administrative expense	$	4,268	$	4,047	$	221		$	15,927		$	14,963	$	964
Severance and related	$	-	$	40	$	(40	)	$	-		$	740	$	(740	)
Development pursuit		75		210		(135	)		(146	)		231		(377	)
Acquisition costs		261		1,443		(1,182	)		741			1,467		(726	)
						-								-
Total severance, development pursuit and acquisition costs	$	336	$	1,693	$	(1,357	)	$	595		$	2,438	$	(1,843	)

(1) Management services owned and third-party represents costs related to regional managers, accounting, and other support staff necessary to oversee, manage and support the operation of our communities and those we manage for third-parties.

4

EdR

FUNDS FROM OPERATIONS

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

	Three months ended December 31,									Year ended December 31,
	2011			2010			Change			2011			2010			Change
Net loss attributable to EdR	$	(5,779	)	$	(1,818	)	$	(3,961	)	$	(11,014	)	$	(42,058	)	$	31,044
Gain on sale of collegiate housing assets (1)		-			(611	)		611			(2,388	)		(611	)		(1,777	)
Loss on impairment of collegiate housing assets (1) (2)		7,859			-			7,859			7,859			33,610			(25,751	)
Real estate related depreciation and amortization		8,304			7,664			640			29,101			29,940			(839	)
Equity portion of real estate depreciation and amortization on equity investees		83			111			(28	)		412			479			(67	)
Equity portion of loss on sale of student housing property on equity investees		-			-			-			256			137			119
Noncontrolling interests		184			196			(12	)		244			(233	)		477
Funds from operations ("FFO")		10,651			5,542			5,109			24,470			21,264			3,206
FFO adjustments:
Loss on extinguishment of debt (1)		-			1,426			(1,426	)		757			1,426			(669	)
Acquisition costs		261			1,443			(1,182	)		741			1,467			(726	)
Straight-line adjustment for ground leases (3)		1,051			721			330			4,208			984			3,224
Reorganization/severance costs, net of taxes		-			24			(24	)		-			447			(447	)
FFO adjustments:		1,312			3,614			(2,302	)		5,706			4,324			1,382
FFO on Participating Developments:(4)
Interest on loan to Participating Development		460			217			243			1,598			329			1,269
Development fees on Participating Development, net of costs and taxes		124			105			19			887			128			759
FFO on Participating Developments		584			322			262			2,485			457			2,028
Core funds from operations ("Core FFO")	$	12,547		$	9,478		$	3,069		$	32,661		$	26,045		$	6,616
FFO per weighted average share/unit (5)	$	0.12		$	0.09		$	0.03		$	0.32		$	0.36		$	(0.04	)
Core FFO per weighted average share/unit (5)	$	0.14		$	0.16		$	(0.02	)	$	0.43		$	0.44		$	(0.01	)
Weighted average shares/units (5)		86,901			59,825			27,076			76,596			58,737			17,859

(1) All of or a portion of these amounts may be included in discontinued operations and may not be visible on the face of our statement of operations on page 3.

(2) In October 2011, NAREIT communicated to its members that the exclusion of impairment write-downs of depreciable real estate is consistent with the definition of FFO and prior periods should be restated to be consistent with this guidance. Accordingly, we have restated all periods presented to reflect the current guidance.

(3) This represents the straight-line rent expense adjustment required by GAAP related to ground leases at two communities. 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. For the three months and year ended December 31, 2011, the adjustment includes $988 and $3,976, respectively, related to GrandMarc at the Corner at the University of Virginia and $56 and $226, respectively, related to University Village on Colvin in Syracuse.

(4) FFO on participating developments represents the economic impact of interest and fees not recognized in net income due to the Company having a participating investment in the third-party development. The adjustment for development fees is calculated under the same percentage of completion method of accounting used for third-party development fees. The adjustment for interest income is based on terms of the loan.

(5) 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.

5

EdR

WHOLLY-OWNED COMMUNITY OPERATING RESULTS

(Amounts in thousands, unaudited)

	Three Months Ended December 31,										Year Ended December 31,
	2011		2010		$ Change			% Change			2011		2010		$ Change		% Change
Revenues
Same-communities	$	27,593	$	25,766	$	1,827			7.1	%	$	99,906	$	95,492	$	4,414		4.6	%
New-communities(1)		4,383		1,018		3,365			NM			9,498		1,018		8,480		NM
Total revenues		31,976		26,784		5,192			19.4	%		109,404		96,510		12,894		13.4	%
Operating expenses (2)
Same-communities		10,465		10,805		(340	)		-3.1	%		47,323		46,009		1,314		2.9	%
New-communities(1)		1,476		284		1,192			NM			3,287		284		3,003		NM
Total operating expenses		11,941		11,089		852			7.7	%		50,610		46,293		4,317		9.3	%
Net operating income
Same-communities		17,128		14,961		2,167			14.5	%		52,583		49,483		3,100		6.3	%
New-communities(1)		2,907		734		2,173			NM			6,211		734		5,477		NM
Total net operating income	$	20,035	$	15,695	$	4,340			27.7	%	$	58,794	$	50,217	$	8,577		17.1	%

NOTE: This table excludes the following properties, which are classified within discontinued operations on the accompanying consolidated statements of operations: Reserve at Clemson (sold in November 2010), The Gables, Western Place, Berkeley Place and the Pointe at Southern (all sold in December 2010), and Troy Place, The Reserve at Jacksonville, The Reserve at Martin, The Chase at Murray and Clemson Place (all sold in January 2011), Collegiate Village and Clayton Station (both sold in Q2 2011).

(1) See page 12 of this supplement for a listing of which communities are categorized as same-communities and which are new communities.

(2) Represents community-level operating expenses excluding management fees, depreciation, amortization, ground lease expense and impairment loss.

6

 

EdR

WHOLLY-OWNED COMMUNITY STATISTICS

	Three Months Ended December 31,									Year Ended December 31,
	2011			2010			Change			2011			2010			Change
Occupancy
Physical		94.8	%		93.4	%		140	bps		91.7	%		90.4	%		130	bps
Economic		94.6	%		93.7	%		90	bps		87.4	%		86.6	%		80	bps
NarPAB	$	463		$	416			11.4	%	$	406		$	378			7.4	%
Other income per avail. bed	$	22		$	19			14.2	%	$	25		$	23			8.7	%
RevPAB	$	485		$	435			11.5	%	$	431		$	401			7.5	%
Operating expense per bed	$	181		$	180			0.6	%	$	199		$	192			3.6	%
Operating margin		62.7	%		58.6	%		406	bps		53.7	%		52.0	%		171	bps
Design Beds		65,916			61,566			7.1	%		253,691			240,508			5.5	%

NOTE: Operating statistics for all periods presented exclude communities classified as discontinued operations. See note on Pg. 6.

7

 

EdR

SAME-COMMUNITY STATISTICS

	Three Months Ended December 31,									Year Ended December 31,
	2011			2010			Change			2011			2010			Change
Occupancy
Physical		94.4	%		93.4	%		100	bps		91.7	%		90.4	%		130	bps
Economic		95.8	%		93.8	%		200	bps		87.8	%		86.3	%		150	bps
NarPAB	$	443		$	414			7.0	%	$	395		$	377			4.8	%
Other income per avail. bed	$	20		$	18			9.6	%	$	23		$	23			0.0	%
RevPAB	$	463		$	432			7.1	%	$	418		$	400			4.6	%
Operating expense per bed	$	175		$	181			-3.1	%	$	198		$	193			2.9	%
Operating margin		62.1	%		58.1	%		400	bps		52.6	%		51.8	%		80	bps
Design Beds		59,658			59,643			0.0	%		238,641			238,585			0.0	%

NOTE: Operating statistics for all periods presented exclude communities classified as discontinued operations. See note on Pg. 6.

8

EdR

2012/2013 PRELEASING UPDATE AS OF FEBRUARY 20TH

		2012-2013					2011-2012						Projected					September 30, 2011
Community	Primary University	Leases		%			Leases			%			Rate Increase			Design Beds		Opening Occupancy
Campus Creek	University of Mississippi		331		52.0	%		220			34.6	%		7.3	%		636		100.0	%
University Village on Colvin	Syracuse University		287		66.4	%		251			58.1	%		5.4	%		432		99.8	%
The Pointe	Pennsylvania State University		947		96.2	%		917			93.2	%		5.3	%		984		100.0	%
The Commons	Florida State University		99		13.5	%		98			13.4	%		5.1	%		732		97.7	%
The Pointe at South Florida	University of South Florida		205		20.5	%		209			20.9	%		5.0	%		1,002		98.4	%
Cape Trails	Southeast Missouri State University		190		52.8	%		186			51.7	%		4.9	%		360		100.0	%
Carrollton Crossing	University of West Georgia		159		47.3	%		169			50.3	%		4.9	%		336		100.0	%
The Reserve at Columbia	University of Missouri		221		32.7	%		354			52.4	%		4.7	%		676		99.9	%
The Reserve on Frankford	Texas Tech University		211		28.6	%		115			15.6	%		4.6	%		737		97.0	%
Wertland Square	University of Virginia		126		82.9	%		152			100.0	%		4.5	%		152		100.0	%
Jefferson Commons	University of Virginia		58		70.7	%		82			100.0	%		4.5	%		82		100.0	%
Pointe West	University of South Carolina		98		20.4	%		80			16.7	%		4.4	%		480		98.1	%
The Reserve at Athens	University of Georgia		382		62.4	%		267			43.6	%		4.3	%		612		99.7	%
The Reserve on South College	Auburn University		184		31.9	%		158			27.4	%		4.3	%		576		100.0	%
The Reserve on Perkins	Oklahoma State University		194		26.5	%		183			25.0	%		4.2	%		732		97.0	%
Campus Lodge	University of Florida		460		41.3	%		378			33.9	%		4.1	%		1,115		96.8	%
The Avenue at Southern	Georgia Southern University		76		12.2	%		100			16.0	%		3.9	%		624		96.8	%
Commons on Kinnear	The Ohio State University		275		54.8	%		250			49.8	%		3.7	%		502		100.0	%
The Commons at Knoxville	University of Tennessee		189		26.7	%		155			21.9	%		3.7	%		708		93.8	%
The Reserve at Saluki Pointe	Southern Illinois University		280		36.5	%		228			29.7	%		3.7	%		768		98.8	%
GrandMarc at the Corner	University of Virginia		323		50.4	%		368			57.4	%		3.6	%		641		89.4	%
Players Club	Florida State University		313		93.2	%		316			94.0	%		3.5	%		336		100.0	%
The Lofts	University of Central Florida		196		26.8	%		218			29.9	%		3.4	%		730		97.8	%
NorthPointe	University of Arizona		121		13.3	%		25			2.7	%		3.0	%		912		93.9	%
University Towers	North Carolina State University		199		20.9	%		255			26.8	%		3.0	%		953		100.0	%
River Pointe	University of West Georgia		72		14.3	%		66			13.1	%		2.2	%		504		93.7	%
College Station at West Lafayette	Purdue University		403		42.0	%		424			44.2	%		2.0	%		960		95.7	%
College Grove	Middle Tennessee State University		198		22.9	%		91			10.5	%		1.3	%		864		85.1	%
The Reserve at Star Pass	University of Arizona		142		13.9	%		72			7.1	%		0.5	%		1,020		76.9	%
The Reserve on West 31st	University of Kansas		158		22.0	%		191			26.6	%		0.5	%		719		85.7	%
The Pointe at Western	Western Michigan University		213		24.3	%		223			25.5	%		-2.0	%		876		76.3	%
Same-communities			7,310		35.2	%		6,801			32.8	%		3.5	%		20,761		94.7	%
Irish Row	University of Notre Dame		240		73.6	%		N/A	(1)		N/A	(1)					326		N/A	(1)
Lotus Lofts	University of Colorado, Boulder		28		70.0	%		N/A	(1)		N/A	(1)					40		N/A	(1)
The Oaks on the Square	University of Conneticut		153		61.2	%		N/A	(1)		N/A	(1)					250		N/A	(1)
The Reserve on Stinson	University of Oklahoma		237		38.7	%		150			24.5	%					612		97.7	%
GrandMarc at Westberry Place	Texas Christian University		75		13.3	%		N/A	(1)		N/A	(1)					562		N/A	(1)
University Village Towers	UC Riverside		67		12.1	%		75			13.5	%					554		86.6	%
East Edge	Univeristy of Alabama		61		7.9	%		N/A	(1)		N/A	(1)					774		N/A	(1)
Westminster House	University of California at Berkeley		9		5.4	%		N/A	(1)		N/A	(1)					167		75.8	%
Campus West	Syracuse University		9		2.9	%		N/A	(1)		N/A	(1)					312		N/A	(1)
3949 Lindell	Saint Louis University		233		91.0	%(2)		N/A	(1)		N/A	(1)					256		N/A	(1)
New-communities			1,112		28.9	%		225									3,853
Wholly-owned communities			8,422		34.2	%		7,026									24,614

(1) Prior year leasing and opening occupancy data is not included for communities under development or for newly acquired communities where reliable information is not available.

(2) 3949 Lindell is currently leased as a conventional apartment community. As such, the leases do not currently follow an academic term like our existing portfolio. We will be converting this property to student leases over the next 24 months. The current lease percentage respresents the community's current occupancy. We expect the community to be approximately 91% leased in the fall.

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EdR

DEVELOPMENT UPDATE

(Amounts in thousands except bed counts)

COMPANY OWNED PROJECTS

Project	Project Type	Bed Count	Estimated Start Date	Anticipated Completion Date	Total Project Development Cost		EdR's Ownership Percentage			EdR's Share of Development Cost		EdR Equity Funded to 12/31/2011		EdR Equity to be Funded
Syracuse University - Campus West	ONE Plan	312	In progress	Summer 2012	$	29,747		100	%	$	29,747	$	4,958	$	9,916
University of Alabama	Joint Venture	774	In progress	Summer 2012		41,350		90	%		37,215		7,763		-
University of Connecticut - Storrs Center Phase I	Wholly Owned	250	In progress	Summer 2012		24,240		100	%		24,240		14,922		-
Total - 2012 Deliveries		1,336				95,337					91,202		27,643		9,916
University of Connecticut - Storrs Center Phase II	Wholly Owned	250	In progress	Summer 2013		24,239		100	%		24,239		-		-
The University of Texas at Austin	ONE Plan	622	In progress	Summer 2013		63,993		100	%		63,993		6,269		57,724
University of Mississippi	Joint Venture	668	Spring 2012	Summer 2013		36,700		70	%		25,690		-		7,707
University of Colorado - Lotus Lofts	Wholly Owned	239	Spring 2012	Summer 2013		19,732		100	%		19,732		-		19,785
University of Kentucky - Haggin Field Honors	ONE Plan	601	Spring 2012	Summer 2013		25,794		100	%		25,794		-		25,794
Total - 2013 Deliveries		2,380				170,458					159,448		12,241		111,010
Total Owned Projects		3,716			$	265,795				$	250,650	$	39,884	$	120,926

PARTICIPATING PROJECTS⁽¹⁾

Project	Bed Count		Estimated Start Date	Anticipated Completion Date	Project Development Cost		Total Project Fees		Fees Earned Prior Year		Fees Earned Year Ended December 31, 2011		Remaining Fees to Earn
Johns Hopkins Graduate Housing		572	In progress	Summer 2012		60,700	$	2,122	$	304	$	1,579	$	239

THIRD-PARTY PROJECTS

Project	Bed Count		Estimated Start Date	Anticipated Completion Date	Project Development Cost		Total Project Fees		Fees Earned Prior Year(2)		Fees Earned Year Ended December 31, 2011(2)		Remaining Fees to Earn
East Stroudsburg University - Pennsylvania		969	In progress	January 2012		59,491		2,246		232		1,886		128
Mansfield University of Pennsylvania		634	In progress	January 2012		35,031		1,449		52		1,362		35
Projects Under Construction - Total		1,603				94,522		3,695		284		3,248		163
Bloomsburg University of Pennsylvania		500	Summer 2013	Summer 2014		TBD		TBD		-		-		-
West Chester University of Pennsylvania Phase II		569	Summer 2013	Summer 2014		TBD		TBD		-		-		-
Recently Awarded Projects - Total		1,069				-		-		-		-		-
Total Third-Party Projects		2,672			$	94,522	$	3,695	$	284	$	3,248	$	163

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

(1) Participating projects are third-party development projects the Company has a significant investment in but does not own. The Company earns fees on these projects, however, in accordance with GAAP the fees are deferred and not recognized in its operating statements until its investment is recovered. The Company includes the earned fees in computing its Core FFO. See page 5.

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

10

EdR

CAPITAL STRUCTURE, as of December 31, 2011

(dollars in thousands)

Total Debt to Gross Assets
Debt (1)	$	358,495
Gross Assets (2)		1,144,145
Debt to Gross Assets		31.3	%
Interest coverage (TTM)		2.7	x
Net Debt to EBITDA (TTM)		5.7	x

Net Debt to Enterprise Value

Net Debt (1)	$	282,682
Market Equity (3)		952,353
Enterprise Value	$	1,235,035
Net Debt to Enterprise Value		22.9	%

Total Debt Outstanding

	Principal		Weighted Average						Average Term
	Outstanding		Interest Rate			%			to Maturity
Fixed Rate - Mortgage Debt (1)	$	285,794		5.96	%		79.7	%		4.00	years
Variable Rate - Mortgage Debt		36,930		4.85	%		10.3	%		1.54	years
Variable Rate - Construction Debt		35,771		1.92	%		10.0	%		8.00	years
Total / Weighted Average	$	358,495		5.44	%		100.0	%		4.15	years

Future Maturities

Fiscal Year Ending	Amortization		Maturities		Total		Percentage
2012	$	4,223	$	48,065	$	52,288		14.6	%
2013		12,534		25,000		37,534		10.4	%
2014		15,269		50,299		65,568		18.3	%
2015		3,445		8,035		11,480		3.2	%
2016		2,393		65,258		67,651		18.9	%
Thereafter		37,648		86,326		123,974		34.6	%
Mortgage Debt (1)		75,512		282,983		358,495		100.0	%
Revolving Credit Facility		-		-		-
Gross Debt (1)	$	75,512	$	282,983		358,495
Less Cash						75,813
Net Debt					$	282,682

(1) Excludes unamortized debt premium of $9K.

(2) Excludes accumulated depreciation of $166,336 as of December 31, 2011.

(3) Market equity includes 91,983,188 shares of the Company's common stock and 1,110,995 operating partnership units and is calculated using $10.23 per share, the closing price of the Company's common stock on December 31, 2011.

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EdR

COMMUNITY LISTING - WHOLLY-OWNED

Name	Primary University Served	Acquisition Date	# of Beds	Name	Primary University Served	Acquisition Date	# of Beds
Players Club	Florida State University	Jan ’05	336	College Grove	Middle Tennessee State University	Apr ’05	864
The Commons	Florida State University	Jan ’05	732	Campus Lodge	University of Florida	Jun ’05	1,115
University Towers	North Carolina State University	Jan ’05	953	The Reserve on South College	Auburn University	Jul ’05	576
The Reserve on Perkins	Oklahoma State University	Jan ’05	732	Cape Trails	Southeast Missouri State University	Jan ’06	360
The Pointe	Pennsylvania State University	Jan ’05	984	Carrollton Crossing	University of West Georgia	Jan ’06	336
College Station at West Lafayette	Purdue University	Jan ’05	960	River Pointe	University of West Georgia	Jan ’06	504
The Reserve on Frankford	Texas Tech University	Jan ’05	737	The Avenue at Southern	Georgia Southern University	Jun ’06	624
Commons on Kinnear	The Ohio State University	Jan ’05	502	The Reserve at Saluki Pointe	Southern Illinois University	Aug '08, Aug '09	768
NorthPointe	University of Arizona	Jan ’05	912	University Village on Colvin	Syracuse University	Aug '09	432
The Reserve at Star Pass	University of Arizona	Jan ’05	1,020			Total Same-Community	19,886
The Lofts	University of Central Florida	Jan ’05	730
The Reserve at Athens	University of Georgia	Jan ’05	612	GrandMarc at The Corner	University of Virginia	Oct '10	641
The Reserve on West 31st	University of Kansas	Jan ’05	719	Wertland Square	University of Virginia	Mar ’11	152
The Reserve at Columbia	University of Missouri	Jan ’05	676	Jefferson Commons	University of Virginia	Mar ’11	82
The Pointe at South Florida	University of South Florida	Jan ’05	1,002	Westminster House	University of California, Berkeley	May ’11	167
The Commons at Knoxville	University of Tennessee	Jan ’05	708	University Village Towers	University of California, Riverside	Sept '11	554
The Pointe at Western	Western Michigan University	Jan ’05	876	Lotus Lofts	University of Colorado, Boulder	Nov '11	40
Campus Creek	University of Mississippi	Feb ’05	636	Irish Row	University of Notre Dame	Nov '11	326
Pointe West	University of South Carolina	Mar ’05	480	GrandMarc at Westberry Place	Texas Christian University	Dec '11	562
				3949 Lindell	Saint Louis University	Dec '11	256
						New-Community	2,780
						Total Wholly-Owned	22,666

12

EdR

INVESTOR INFORMATION

Executive Management
Randy Churchey	Chief Executive Officer
Randy Brown	Chief Financial Officer
Tom Trubiana	Chief Investment Officer
Christine Richards	Chief Operating Officer
Corporate Headquarters	Investor Relations
EdR	ICR, LLC
530 Oak Court Drive, Suite 300	Brad Cohen
Memphis, TN  38117	(203) 682-8211
(901) 259-2500

Covering Analysts

Firm	Analyst	Contact #
Bank of America - Merrill	Jana Galan	(646) 855-3081
Green Street Advisors	Andrew J. McCulloch	(949) 640-8780
Hilliard Lyons	Carol Kemple	(502) 588-1839
Janney Capital Markets	Andrew DiZio	(215) 665-6439
JMP Securities	Mitch Germain	(212) 906-3546
J.P. Morgan Securities Inc.	Anthony Paolone	(212) 622-6682
Keefe, Bruyette & Woods	Taylor Schimkat	(212) 887-3885
KeyBanc Capital Markets	Karin A. Ford	(917) 368-2293
Morgan Keegan & Company	Stephen Swett	(212) 508-7585
Robert W. Baird & Co., Inc.	Paula Poskon	(703) 821-5782
Sandler O'Neill + Partners, L.P.	Alex Goldfarb	(212) 466-7937
Stifel Nicolaus & Company Inc.	Rod Petrik	(443) 224-1306
UBS Securities	Russ Nussbaum	(212) 713-2484

13

EdR

DEFINITIONS

Physical occupancy

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

Economic occupancy

Represents the effective occupancy calculated by taking net apartment rent accounted for on a GAAP basis for the respective period divided by potential rent for the respective period.

Net apartment rent per available bed (NarPAB)

Represents GAAP net apartment rent for the respective period divided by the sum of the design beds in the portfolio for each month included in the period reported.

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/app fees, late fees, termination fees, parking fees, transfer fees, damage recovery, utility recovery, and other misc.

Revenue per available bed (RevPAB)

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

Operating expense per bed

Represents community-level operating expenses excluding management fees, depreciation and amortization.

Design beds

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

Same community

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

14

EdR

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.

15