Education Realty Trust 8-K EdR ANNOUNCES SECOND QUARTER 2016 RESULTS

FINANCIAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS

(Amounts in thousands, except per share data, unaudited)
OPERATING DATA:
		Three months ended June 30,									Six Months Ended June 30,
		2016		2015		$ Chg			% Chg		2016		2015		$ Chg			% Chg
	Same-community revenue	$	51,584	$	49,499	$	2,085		4.2	%	$	110,074	$	105,744	$	4,330		4.1	%
	Total community revenue	61,690		53,734		7,956			14.8	%	131,873		114,117		17,756			15.6	%
	Total revenue	65,140		57,324		7,816			13.6	%	138,519		121,453		17,066			14.1	%
	Same-community net operating income	29,834		29,065		769			2.6	%	67,264		63,547		3,717			5.8	%
	Total community net operating income	35,524		30,866		4,658			15.1	%	80,818		67,109		13,709			20.4	%
	Total operating income	9,486		8,943		543			6.1	%	29,702		22,781		6,921			30.4	%
	Net income attributable to EdR	17,655		2,917		14,738			505.2	%	34,324		9,858		24,466			248.2	%
	Per share - basic	$	0.26	$	0.06	$	0.20		333.3	%	$	0.53	$	0.20	$	0.33		165.0	%
	Per share - diluted	$	0.26	$	0.06	$	0.20		333.3	%	$	0.52	$	0.20	$	0.32		160.0	%
	Funds from operations (FFO)	24,836		18,767		6,069			32.3	%	47,616		41,863		5,753			13.7	%
	Per weighted average share/unit (1)	$	0.36	$	0.38	$	(0.02	)	(5.3	)%	$	0.73	$	0.86	$	(0.13	)	(15.1	)%
	Core funds from operations (Core FFO)	26,417		20,057		6,360			31.7	%	60,363		44,354		16,009			36.1	%
	Per weighted average share/unit (1)	$	0.39	$	0.41	$	(0.02	)	(4.9	)%	$	0.92	$	0.91	$	0.01		1.1	%
FINANCIAL RATIOS:
		6/30/2016				12/31/2015
	Net debt to gross assets	12.2%				27.2%
	Debt to gross assets	19.5%				28.3%
	Net debt to enterprise value	8.4%				22.0%
	Interest coverage ratio (TTM)	6.1x				4.8x
	Net debt to EBITDA - Adjusted (TTM)	0.6x				4.0x
(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.

SECOND QUARTER
1

BALANCE SHEET

(Amount in thousands, except share and per share data)		June 30, 2016			December 31, 2015
Assets		(unaudited)
	Collegiate housing properties, net (1)	$	1,898,602		$	1,774,796
	Assets under development	265,337			117,384
	Cash and cash equivalents	230,402			33,742
	Restricted cash	8,674			9,784
	Other assets	63,457			66,125
Total assets		$	2,466,472		$	2,001,831
Liabilities and equity
Liabilities:
	Mortgage and construction loans, net of unamortized premium and deferred financing costs	$	98,369		$	204,511
	Unsecured revolving credit facility	—			—
	Unsecured term loans, net of unamortized deferred financing costs	186,643			186,518
	Unsecured senior notes, net of unamortized deferred financing costs	247,808			247,678
	Accounts payable and accrued expenses	114,403			85,670
	Deferred revenue	11,890			19,024
Total liabilities		659,113			743,401
Commitments and contingencies		—			—
Redeemable noncontrolling interests		11,828			13,560
Equity:
EdR stockholders' equity:
	Common stock, $0.01 par value per share, 200,000,000 shares authorized, 71,760,137 and 56,879,003 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively	718			569
	Preferred shares, $0.01 par value per share, 50,000,000 shares authorized, no shares issued and outstanding	—			—
	Additional paid-in capital	1,791,014			1,263,603
	Retained earnings (accumulated deficit)	—			(21,998		)
	Accumulated other comprehensive loss	(9,963		)	(5,475		)
Total EdR stockholders' equity		1,781,769			1,236,699
Noncontrolling interest		13,762			8,171
Total equity		1,795,531			1,244,870
Total liabilities and equity		$	2,466,472		$	2,001,831

⁽¹⁾ Amount is net of accumulated depreciation of $284,681 and $270,993, as of June 30, 2016 and December 31, 2015, respectively.

SECOND QUARTER
2

OPERATING RESULTS

(Amounts in thousands, except per share data, unaudited)
	Three months ended June 30,									Six months ended June 30,
	2016			2015			$ Change			2016			2015			$ Change
Revenues:
Collegiate housing leasing revenue	$	61,690		$	53,734		$	7,956		$	131,873		$	114,117		$	17,756
Third-party development consulting services	467			444			23			950			1,041			(91		)
Third-party management services	697			780			(83		)	1,591			1,833			(242		)
Operating expense reimbursements	2,286			2,366			(80		)	4,105			4,462			(357		)
Total revenues	65,140			57,324			7,816			138,519			121,453			17,066
Operating expenses:
Collegiate housing leasing operations	26,166			22,868			3,298			51,055			47,008			4,047
Development and management services	2,728			2,507			221			5,249			5,209			40
General and administrative	2,921			1,769			1,152			5,502			4,239			1,263
Development pursuit, acquisition costs and severance	158			790			(632		)	686			959			(273		)
Depreciation and amortization	19,099			15,911			3,188			36,615			31,777			4,838
Ground lease expense	2,296			2,170			126			5,605			5,018			587
Reimbursable operating expenses	2,286			2,366			(80		)	4,105			4,462			(357		)
Total operating expenses	55,654			48,381			7,273			108,817			98,672			10,145
Operating income	9,486			8,943			543			29,702			22,781			6,921
Nonoperating (income) expenses:
Interest expense	3,635			5,451			(1,816		)	8,298			11,392			(3,094		)
Amortization of deferred financing costs	457			491			(34		)	937			1,007			(70		)
Interest income	(200		)	(67		)	(133		)	(274		)	(105		)	(169		)
Loss on extinguishment of debt	216			—			216			10,136			—			10,136
Total nonoperating expenses	4,108			5,875			(1,767		)	19,097			12,294			6,803
Income before equity in earnings (losses) of unconsolidated entities, income taxes and gain on sale of collegiate housing properties	5,378			3,068			2,310			10,605			10,487			118
Equity in earnings (losses) of unconsolidated entities	107			(202		)	309			(137		)	(396		)	259
Income before income taxes and gain on sale of collegiate housing properties	5,485			2,866			2,619			10,468			10,091			377
Income tax expense	89			90			(1		)	140			168			(28		)
Income before gain on sale of collegiate housing properties	5,396			2,776			2,620			10,328			9,923			405
Gain on sale of collegiate housing properties	12,083			—			12,083			23,956			—			23,956
Net income	17,479			2,776			14,703			34,284			9,923			24,361
Less: Net income (loss) attributable to the noncontrolling interests	(176		)	(141		)	(35		)	(40		)	65			(105		)
Net income attributable to Education Realty Trust, Inc.	$	17,655		$	2,917		$	14,738		$	34,324		$	9,858		$	24,466

SECOND QUARTER
3

OPERATING RESULTS

(Amounts in thousands, except per share data, unaudited)
	Three months ended June 30,								Six months ended June 30,
	2016			2015		$ Change			2016			2015			$ Change
Other comprehensive income:
(Loss) gain on cash flow hedging derivatives	(1,042		)	2,091		(3,133		)	(4,488		)	(348		)	(4,140		)
Comprehensive income	$	16,613		$	5,008	$	11,605		$	29,836		$	9,510		$	20,326
Earnings per share information:
Net income attributable to Education Realty Trust, Inc. common stockholders per share – basic	$	0.26		$	0.06	$	0.20		$	0.53		$	0.20		$	0.33
Net income attributable to Education Realty Trust, Inc. common stockholders per share – diluted	$	0.26		$	0.06	$	0.20		$	0.52		$	0.20		$	0.32
Weighted average shares of common stock outstanding – basic	68,025			48,514		19,511			65,352			48,345			17,007
Weighted average shares of common stock outstanding – diluted (1)	68,293			48,832		19,461			65,629			48,665			16,964
(1) Weighted average shares of common stock outstanding - diluted assumes the conversion of outstanding redeemable Operating Partnership Units and University Towers Operating Partnership Units.

SECOND QUARTER
4

FUNDS FROM OPERATIONS

(Amounts in thousands, except per share data, unaudited)		Three months ended June 30,									Six months ended June 30,
		2016			2015			$ Change			2016			2015		$ Change
Net income attributable to EdR		$	17,655		$	2,917		$	14,738		$	34,324		$	9,858	$	24,466
	Gain on sale of collegiate housing assets	(12,083		)	—			(12,083		)	(23,956		)	—		(23,956		)
	Real estate related depreciation and amortization	18,695			15,517			3,178			35,808			31,040		4,768
	Equity portion of real estate depreciation and amortization on equity investees	657			423			234			1,323			843		480
	Noncontrolling interests	(88		)	(90		)	2			117			122		(5		)
Funds from operations ("FFO") available to stockholders and unitholders		24,836			18,767			6,069			47,616			41,863		5,753
	percent change							32.3		%						13.7		%
FFO adjustments:
	Loss on extinguishment of debt	216			—			216			10,136			—		10,136
	Acquisition costs	178			90			88			238			90		148
	Straight-line adjustment for ground leases (1)	1,187			1,200			(13		)	2,373			2,401		(28		)
FFO adjustments		1,581			1,290			291			12,747			2,491		10,256
Core funds from operations ("Core FFO") available to stockholders and unitholders		$	26,417		$	20,057		$	6,360		$	60,363		$	44,354	$	16,009
	percent change							31.7		%						36.1		%
FFO per weighted average share/unit (2)		$	0.36		$	0.38		$	(0.02	)	$	0.73		$	0.86	$	(0.13	)
	percent change							(5.3		)%						(15.1		)%
Core FFO per weighted average share/unit (2)		$	0.39		$	0.41		$	(0.02	)	$	0.92		$	0.91	$	0.01
	percent change							(4.9		)%						1.1		%
Weighted average shares/units (2)		68,293			48,832			19,461			65,629			48,665		16,964
	percent change							39.9		%						34.9		%
(1)  This represents the straight-line rent expense adjustment required by GAAP related to ground leases. As the ground lease terms range from 40 to 99 years, the adjustment to straight-line these agreements becomes material to our operating results, distorting the economic results of the communities.
(2)  FFO 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.

SECOND QUARTER
5

COMMUNITY OPERATING RESULTS

(Amounts in thousands, unaudited)
		Three Months Ended June 30,									Six months ended June 30,
		2016		2015		$ Change			% Change		2016		2015		$ Change			% Change
Revenues
	Same-communities(1)	$	51,584	$	49,499	$	2,085		4.2	%	$	110,074	$	105,744	$	4,330		4.1	%
	New-communities (2)	8,527		1,365		7,162			NM		17,996		2,672		15,324			NM
	Sold-communities(3)	1,579		2,870		(1,291		)	NM		3,803		5,701		(1,898		)	NM
Total revenues		61,690		53,734		7,956			14.8	%	131,873		114,117		17,756			15.6	%
Operating expenses (4)
	Same-communities(1)	21,750		20,434		1,316			6.4	%	42,810		42,197		613			1.5	%
	New-communities (2)	3,542		833		2,709			NM		6,071		1,624		4,447			NM
	Sold-communities(3)	874		1,601		(727		)	NM		2,174		3,187		(1,013		)	NM
Total operating expenses		26,166		22,868		3,298			14.4	%	51,055		47,008		4,047			8.6	%
Net operating income
	Same-communities(1)	29,834		29,065		769			2.6	%	67,264		63,547		3,717			5.8	%
	New-communities (2)	4,985		532		4,453			NM		11,925		1,048		10,877			NM
	Sold-communities(3)	705		1,269		(564		)	NM		1,629		2,514		(885		)	NM
Total net operating income		$	35,524	$	30,866	$	4,658		15.1	%	$	80,818	$	67,109	$	13,709		20.4	%
(1) Same-communities are defined as those communities that have been open and operating for the whole time in the current and prior periods. See page 25 of this supplement for a listing of same-communities.
(2) See page 25 of this supplement for a listing of which communities are categorized as new-communities.
(3) Represents operating results from communities sold in 2015 and 2016.
(4) 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.

SECOND QUARTER
6

SAME-COMMUNITY EXPENSES BY CATEGORY

(Amounts in thousands, except bed and per-bed data, unaudited)
	Three months ended June 30, 2016						Three months ended June 30, 2015
	Amount		Per Bed		% of Total Operating Expenses		Amount		Per Bed		% of Total Operating Expenses		$ Change				% Change
Utilities(1)	$	6,203	$	249	28	%	$	5,917	$	238	29	%	$	286			4.8	%
On-Site Payroll	4,045		163		19	%	4,054		163		20	%	(9		)		(0.2	)%
General & Administrative(2)	3,450		139		16	%	3,235		130		16	%	215				6.6	%
Maintenance & Repairs(3)	1,815		73		8	%	1,687		68		8	%	128				7.6	%
Marketing	816		33		4	%	785		32		4	%	31				3.9	%
Total Direct Operating Expenses	$	16,329	$	657	75	%	$	15,678	$	631	77	%	$	651			4.2	%
Real Estate Taxes	4,869		196		22	%	4,138		166		20	%	731				17.7	%
Insurance	552		22		3	%	618		25		3	%	(66		)		(10.7	)%
Total Fixed Operating Expenses	$	5,421	$	218	25	%	$	4,756	$	191	23	%	$	665			14.0	%
Total Property Operating Expenses	$	21,750	$	875	100	%	$	20,434	$	822	100	%	$	1,316			6.4	%
	Six months ended June 30, 2016						Six months ended June 30, 2015
	Amount		Per Bed		% of Total Operating Expenses		Amount		Per Bed		% of Total Operating Expenses		$ Change				% Change
Utilities(1)	$	12,204	$	491	29	%	$	12,073	$	485	29	%	$	131			1.1	%
On-Site Payroll	8,184		329		19	%	8,121		326		19	%	63				0.8	%
General & Administrative(2)	6,895		277		16	%	6,859		276		16	%	36				0.5	%
Maintenance & Repairs(3)	3,111		125		7	%	2,875		116		7	%	236				8.2	%
Marketing	1,762		71		4	%	1,799		72		4	%	(37		)		(2.1	)%
Total Direct Operating Expenses	$	32,156	$	1,293	75	%	$	31,727	$	1,275	75	%	$	429			1.4	%
Real Estate Taxes	9,547		384		22	%	9,232		$	371	22	%	$	315		(4)	3.4	%
Insurance	1,107		44		3	%	1,238		50		3	%	(131		)		(10.6	)%
Total Fixed Operating Expenses	$	10,654	$	428	25	%	$	10,470	$	421	25	%	$	184			1.8	%
Total Property Operating Expenses	$	42,810	$	1,721	100	%	$	42,197	$	1,696	100	%	$	613			1.5	%
Same-community beds	24,880
(1) Represents gross costs before recoveries from tenants and includes student amenities such as internet.
(2) Includes property-level general and administrative cost and dining costs as well as regional and other corporate costs of supporting the communities.
(3) Includes general maintenance costs, grounds and landscaping, turn costs and life safety costs.
(4) During the first quarter of 2015, the Company recognized $0.8 million in real estate taxes related to a tax assessment covering several prior assessment years. Without the charge in the prior year, real estate taxes would have increased approximately $1.1 million (13%) and total property operating expenses would have increased 3.4% over the prior year.

SECOND QUARTER
7

COMMUNITY OPERATIONS - TRAILING FIVE QUARTERS

(Amounts in thousands, except beds and per bed amounts)		Three Months Ended															Total / Weighted Average - Trailing Twelve Months
		June 30, 2015			September 30, 2015			December 31, 2015			March 31, 2016			June 30, 2016
2016 Same Communities
	Revenue	$	49,499		$	47,304		$	59,270		$	58,490		$	51,584		$	216,648
	Operating Expenses	20,434			24,631			21,500			21,060			21,750			88,941
	Net Operating Income	$	29,065		$	22,673		$	37,770		$	37,430		$	29,834		$	127,707
	Margin	59		%	48		%	64		%	64		%	58		%	59		%
	Beds	74,640			74,640			74,640			74,640			74,640			298,560
	Occupancy(1)	83.9		%	89.1		%	97.6		%	96.7		%	84.4		%	91.9		%
	Net Apartment Rent per Occupied Bed	$	733		$	639		$	769		$	761		$	754		$	732
	Other Income per Occupied Bed	57			72			45			49			65			57
	Total Revenue per Occupied Bed	$	790		$	711		$	814		$	810		$	819		$	789
	Operating Expense per Available Bed	$	274		$	330		$	288		$	282		$	291		$	298
2016 New Communities
	Revenue	$	1,365		$	4,822		$	9,646		$	9,469		$	8,527		$	32,464
	Operating Expenses	833			1,860			2,720			2,529			3,542			10,651
	Net Operating Income	$	532		$	2,962		$	6,926		$	6,940		$	4,985		$	21,813
	Margin	39		%	61		%	72		%	73		%	58		%	67		%
	Beds	2,154			8,085			11,376			11,570			14,030			45,061
	Occupancy(1)	96.1		%	89.2		%	92.9		%	92.6		%	65.9		%	83.8		%
	Net Apartment Rent per Occupied Bed	$	631		$	615		$	885		$	849		$	863		$	818
	Other Income per Occupied Bed	29			53			28			34			59			42
	Total Revenue per Occupied Bed	$	660		$	668		$	913		$	883		$	922		$	860
	Operating Expense per Available Bed	$	387		$	230		$	239		$	219		$	252		$	236
2016 Sold Communities
	Revenue	$	2,870		$	2,599		$	2,864		$	2,224		$	1,579		$	9,266
	Operating Expenses	1,601			1,953			1,611			1,300			874			5,738
	Net Operating Income	$	1,269		$	646		$	1,253		$	924		$	705		$	3,528
	Margin	44		%	25		%	44		%	42		%	45		%	38		%
	Beds	6,264			6,264			6,264			5,184			4,032			21,744
	Occupancy(1)	87.3		%	87.6		%	86.6		%	85.9		%	93.3		%	88.0		%
	Net Apartment Rent per Occupied Bed	$	505		$	447		$	510		$	472		$	388		$	459
	Other Income per Occupied Bed	20			27			19			27			31			25
	Total Revenue per Occupied Bed	$	525		$	474		$	529		$	499		$	419		$	484
	Operating Expense per Available Bed	$	255		$	312		$	257		$	251		$	217		$	264

SECOND QUARTER
8

COMMUNITY OPERATIONS - TRAILING FIVE QUARTERS

(Amounts in thousands, except beds and per bed amounts)		Three Months Ended															Total / Weighted Average - Trailing Twelve Months
		June 30, 2015			September 30, 2015			December 31, 2015			March 31, 2016			June 30, 2016
2016 Total Communities
	Revenue	$	53,734		$	54,725		$	71,780		$	70,183		$	61,690		$	258,378
	Operating Expenses	22,868			28,444			25,831			24,889			26,166			105,330
	Net Operating Income	$	30,866		$	26,281		$	45,949		$	45,294		$	35,524		$	153,048
	Margin	57		%	48		%	64		%	65		%	58		%	59		%
	Beds	83,058			88,989			92,280			91,394			92,702			365,365
	Occupancy(1)	84.5		%	89.0		%	96.3		%	95.5		%	82.0		%	90.7		%
	Net Apartment Rent per Occupied Bed	$	712		$	624		$	767		$	757		$	749		$	726
	Other Income per Occupied Bed	53			67			41			46			63			54
	Total Revenue per Occupied Bed	$	765		$	691		$	808		$	803		$	812		$	780
	Operating Expense per Available Bed	$	275		$	320		$	280		$	272		$	282		$	288
(1) Represents the weighted average physical occupancy for the period presented.

SECOND QUARTER
9

PRELEASING SUMMARY

						Preleasing at July 29,
	Design Beds	% of NOI		2015 Opening Occupancy		2016		2015		Preleasing Ahead/(Behind)		Projected Rate Growth
Same-Communities - by Tier
Prior Year Occupancy Below 90% (Tier 1)	2,000	3.8	%	82.5	%	74.8	%	76.8	%	(2.0	)%	0.4	%
Prior Year Occupancy 90% to 96.9% (Tier 2)	4,558	11.2	%	95.2	%	93.2	%	90.5	%	2.7	%	2.1	%
Prior Year Occupancy 97% and Above (Tier 3)	20,979	85.0	%	99.8	%	97.4	%	99.5	%	(2.1	)%	3.8	%
Total Same-Communities (1)	27,537	100.0	%	97.8	%	95.1	%	96.3	%	(1.2	)%	3.4	%
Total New-Communities (2)	4,685					85.4	%
Total Communities	32,222					93.6	%
Projected Fall Revenue:
The same-community portfolio is projected to obtain a 3.0% to 3.5% increase in revenue for the upcoming lease term, with net rates up 3.4% and occupancies in a range of 50 basis points down to consistent with the prior year.
(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 2016/2017 leasing cycle. Design Beds for Same-Communities included in the 2016 Preleasing Summary above include the following design beds: (1) total same-community design beds on page 25 of 24,880 plus 2,657 design beds on communities that are considered same for leasing purposes (see note 1 on page 25).
(2) The new-community designation for leasing purposes is different than for financial statement purposes. A community is considered new-community for leasing when the Company has not previously managed the leasing process. Design beds for Total New-Communities above include the following: (1) our 2015 acquisitions of the Commons on Bridge (150 beds) and The Province Boulder (317 beds) plus (2) our 2016 acquisitions of Lokal (194 beds) and The Hub at Madison (1,036 beds) plus (3) beds at our 2016 development deliveries of The Retreat at Oxford (1,018 beds), The Retreat at Blacksburg (829 beds), and Limestone Park I & II (1,141 beds).

SECOND QUARTER
10

SAME-COMMUNITY PRELEASING BY REGION AND DISTANCE

						Preleasing at July 29,
	Design Beds	% of NOI		2015 Opening Occupancy		2016		2015		Preleasing Ahead/(Behind)		Projected Rate Growth
Same-Communities - by Region (1)
Mid-Atlantic	5,818	24.8	%	99.0	%	97.2	%	98.7	%	(1.5	)%	3.0	%
Midwest	2,276	4.8	%	91.3	%	70.4	%	87.6	%	(17.2	)%	0.2	%
North	3,205	10.0	%	98.1	%	96.7	%	95.5	%	1.2	%	2.7	%
South Central	8,674	34.9	%	98.1	%	97.6	%	97.6	%	—	%	3.3	%
Southeast	4,337	12.2	%	98.0	%	97.9	%	96.1	%	1.8	%	3.7	%
West	3,227	13.3	%	98.8	%	96.1	%	96.0	%	0.1	%	6.0	%
Total Same-Communities	27,537	100.0	%	97.8	%	95.1	%	96.3	%	(1.2	)%	3.4	%
Same-Communities - by Distance from Campus
0-0.2 miles	19,488	79.7	%	98.4	%	97.2	%	97.4	%	(0.2	)%	3.6	%
0.21-0.49 miles	2,144	5.6	%	96.4	%	84.3	%	92.9	%	(8.6	)%	3.0	%
0.5-0.99 miles	336	0.6	%	95.5	%	80.7	%	92.9	%	(12.2	)%	9.7	%
1.0-1.99 miles	3,709	10.4	%	96.8	%	90.4	%	95.3	%	(4.9	)%	2.4	%
2.0 & > miles	1,860	3.7	%	94.8	%	97.0	%	92.0	%	5.0	%	1.2	%
Total Same-Communities	27,537	100.0	%	97.8	%	95.1	%	96.3	%	(1.2	)%	3.4	%
(1) See definition of regions on page 27.

SECOND QUARTER
11

TOP EdR MARKETS AND STATES BY REVENUE

*The data above is based on revenue for the twelve months ended June 30, 2016 and excludes properties that were sold during the period.

⁽¹⁾ All revenue at the University of Kentucky is from ONE Plan^SM on-campus collegiate housing communities.

SECOND QUARTER
12

TOP EdR MARKETS AND STATES BY REVENUE

*The data above is based on revenue for the twelve months ended June 30, 2016 and excludes properties that were sold during the period.

SECOND QUARTER
13

NEW SUPPLY AND ENROLLMENT - EdR MARKETS

EdR Market Supply, Enrollment and Revenue Growth

EdR Markets (% of enrollment):	2013		2014		2015		2016*			2017*
Projected new supply	2.2	%	2.2	%	2.0	%	1.8	%		2.2	%
Projected enrollment growth	1.3	%	1.4	%	1.5	%	1.5	%		1.8	%
	0.9	%	0.8	%	0.5	%	0.3	%		0.4	%
Same-community:
Occupancy increase	3.0	%	2.0	%	0.4	%	(0.3	)%	(1)
Rate increase	2.0	%	2.0	%	3.4	%	3.4	%	(1)
Total leasing revenue growth	5.0	%	4.0	%	3.8	%	3.1	%
*Enrollment projection represents the 3-year enrollment CAGR through 2015 for our markets.
(1) 2016 represents current guidance with occupancy growth in the midpoint of the range of 50 bps down to consistent with the prior year, and revenue growth of between 3.0% and 3.5%.

SECOND QUARTER
14

OWNED COMMUNITY PROJECTED 2017 NEW SUPPLY AND DEMAND INFORMATION

By Region
Region (2)	% of Owned Beds	EdR NOI % (1)	Enrollment Growth 3 Year CAGR - Universities Served	2017 New Supply %	Variance
West	11%	14%	2.0%	2.3%	(0.3)%
Mid Atlantic	18%	20%	1.8%	1.1%	0.7%
North	18%	17%	(0.1)%	2.0%	(2.1)%
South Central	34%	35%	2.4%	3.2%	(0.8)%
Southeast	12%	9%	3.0%	0.9%	2.1%
Midwest	7%	5%	1.2%	3.2%	(2.0)%
Total	100%	100%	1.8%	2.2%	(0.4)%

Projected 2017 New Supply Sorted by Percentage Increase				University Markets with >5% Increase in 2017 Supply
New Supply Growth	University Markets	EdR Beds	Pro Forma EdR NOI %(1)	University	New Supply Increase	Pro Forma EdR NOI %(1)
0%	40%	27%	29%	Colorado State University	8.5%	1.3%
0.1% to 1.0%	18%	12%	13%	University of Tennessee	6.2%	1.7%
1.0% - 3.0%	22%	25%	22%	University of Oklahoma	7.2%	0.7%
3.0% - 5.0%	8%	27%	29%	Texas Tech University	6.3%	2.2%
> 5.0%	12%	9%	7%	University of Missouri	5.3%	1.1%
Total	100%	100%	100%			7.0%
NOTE: Schedule represents all markets served by EdR communities and includes the 2016 acquisitions and developments and all announced 2017 developments and acquisitions. Data was obtained from the National Center for Education Statistics, AXIOMetrics and local market data.
(1) NOI is based on 2016 forecast net operating income with proforma adjustments for 2016 developments and completed or pending acquisitions.
(2) See definition of regions on page 27.

SECOND QUARTER
15

OWNED DEVELOPMENT SUMMARY

(Amounts in thousands, except bed counts)
Active Projects	Project Type	Bed Count	Estimated Start Date	Anticipated Completion Date	Total Project Development Cost		EdR's Ownership Percentage		EdR's Share of Development Cost		EdR's Share of Development Cost to be Funded
University of Kentucky - Holmes Hall and Boyd Hall (formerly Limestone Park I & II)(1)	ONE Plan (2)	1,141	In progress	Summer 2016	$	83,911	100	%	$	83,911	$	4,510
University of Mississippi - The Retreat - Phase II	Wholly Owned	350	In progress	Summer 2016	26,161		100	%	26,161		1,728
Virginia Polytechnic Institute and State University - Retreat at Blacksburg - Ph I & II	Joint Venture	829	In progress	Summer 2016	64,433		75	%	48,325		8,478
Total - 2016 Deliveries		2,320			$	174,505			$	158,397	$	14,716
University of Kentucky - University Flats	ONE Plan (2)	771	In progress	Summer 2017	$	74,038	100	%	$	74,038	$	49,951
Boise State University	ONE Plan (2)	656	In progress	Summer 2017	39,763		100	%	39,763		34,673
University of Kentucky - Lewis Hall	ONE Plan (2)	346	In progress	Summer 2017	26,935		100	%	26,935		23,771
Michigan State University - SkyVue	Joint Venture	824	In progress	Summer 2017	89,906		90	%	80,915		54,129
Texas State University - The Local: Downtown	Joint Venture	304	In progress	Summer 2017	29,631		80	%	23,705		16,980
Oklahoma State University - Avid Square	Joint Venture	475	In progress	Summer 2017	47,227		70	%	33,059		24,730
Northern Michigan University	ONE Plan (2)	800	In progress	Summer / Dec 2017	50,267		100	%	50,267		50,267
Total - 2017 Deliveries		4,176			$	357,767			$	328,682	$	254,501
University of Pittsburgh	Joint Venture	723	In progress	Summer 2018	$	106,098	80	%	$	84,878	$	84,878
Florida State University - Players Club Redevelopment	Wholly Owned	592	Summer 2017	Summer 2018	37,458		100	%	37,458		37,458
Northern Michigan University	ONE Plan (2)	400	In progress	Summer 2018	25,133		100	%	25,133		25,133
Total - 2018 Deliveries		1,715			$	168,689			$	147,469	$	147,469
Total Active Projects		8,211			$	700,961			$	634,548	$	416,686
Recently Awarded	Project Type	Bed Count	Estimated Start Date	Anticipated Completion Date	Total Project Development Cost
Cornell University - Maplewood	ONE Plan (2)	850	Fall 2016	Summer 2018	$	80,000
NOTE: The initiation and completion of an awarded project that has not begun construction is contingent upon execution of transactional documents, including such items as development agreements, construction agreements and ground leases.
(1) This project, once complete, will consist of multiple communities.
(2) 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.

SECOND QUARTER
16

CAPITAL ALLOCATION - LONG TERM FUNDING PLAN

(Amounts in millions)
Sources and Uses of Capital for All Announced Transactions
Estimated Capital Uses:
	Acquisition or Development Costs		Less: Costs Incurred to Date			Remaining Capital Needs
2016 Announced Acquisitions(1)	$	154.0	$	—		$	154.0
2016 Development Deliveries(2)	158.4		143.7			14.7
2017 Development Deliveries(2)	328.7		74.2			254.5
2018 Development Deliveries(2)	147.5		—			147.5
	$	788.6	$	217.9		$	570.7
Estimated Capital Sources:
						Capital Sources
Cash on Hand(3)						$	230.0
Cash from July 2016 ATM Sales(4)						57.9
Draws on Revolving Credit Facility(5)						282.8
						$	570.7
Debt to Gross Assets
			June 30, 2016			June 30, 2016 Pro Forma(6)
Debt to gross assets			19.5		%	26.5		%

NOTE - This analysis demonstrates that EdR could fund all announced acquisitions and developments as of June 30, 2016 and our debt to gross assets is still less than 30%.

⁽¹⁾ Represents acquisition costs of announced acquisitions that are expected to close in 2016.

⁽²⁾ Represents EdR's share of development costs - see page 16 for details.

⁽³⁾ Represents cash on hand at June 30, 2016.

⁽⁴⁾ Represents cash raised from ATM sales in July 2016.

⁽⁵⁾ Represents anticipated draws on the revolving credit facility; the current balance is $0.

⁽⁶⁾ Represents pro forma debt to gross assets as if all announced acquisitions and developments were funded as of June 30, 2016.

SECOND QUARTER
17

THIRD-PARTY DEVELOPMENT SUMMARY

(Amounts in thousands except bed counts)
THIRD-PARTY PROJECTS
Active Projects	Bed Count	Estimated Start Date	Anticipated Completion Date	Project Development Cost		Total Project Fees		Fees Earned Prior Year (1)		Fees Earned Six Months Ended June 30, 2016 (1)		Remaining Fees to Earn
University of Cal. Berkeley - Bowles Hall	186	In progress	Summer 2016	$	35,947	$	1,768	$	826	$	764	$	178
Clarion University of Pennsylvania	728	In progress	(2)	55,104		2,092		2,046		30		16
East Stroudsburg University - Pennsylvania Ph II	488	In progress	Summer 2017	45,349		1,374		—		—		1,374
Texas A&M - Commerce	490	In progress	Summer 2017	29,925		1,260		—		—		1,260
Shepherd University	298	In progress	Summer 2017	22,385		1,025		—		36		989
Total	2,190			$	188,710	$	7,519	$	2,872	$	830	$	3,817
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 Southeastern Louisiana University has been removed from the schedule above, as the predevelopment agreement was terminated in June 2016.
(1) Amount may not tie to third-party development services revenue on the statement of operations as this schedule only includes fees earned on projects that are in progress or recently completed.
(2) The first phase of the project at Clarion University of Pennsylvania for collegiate housing delivered in August 2015, the second phase of the project for collegiate housing delivered in December 2015 and a third phase of the project for other capital improvements is scheduled to deliver in the summer of 2016.

SECOND QUARTER
18

CAPITAL STRUCTURE

as of June 30, 2016					Principal Outstanding		Weighted Average Interest Rate		Average Term to Maturity (in years)
(Amounts in thousands)
Total Debt to Gross Assets
Debt(1)	$	536,816		Variable Rate - Mortgage Debt	33,300		2.6	%	1.0
Gross Assets(2)	2,751,153			Variable Rate - Construction Debt	66,016		2.5	%	2.1
Debt to Gross Assets	19.5		%	Fixed Rate - 5 Yr. Unsecured Term Loan (6)	65,000		2.9	%	2.5
				Fixed Rate - 7 Yr. Unsecured Term Loan (6)	122,500		3.9	%	4.5
Net Debt to Gross Assets				Fixed Rate - Unsecured Senior Notes	250,000		4.6	%	8.4
Net Debt	$	306,414		Variable Rate - Unsecured Revolving Credit Facility	—		1.7	%	2.4
Gross Assets(7)	2,520,751			Debt(1) / Weighted Average	$	536,816	3.8	%	5.6
Net Debt to Gross Assets	12.2		%	Less: Cash	230,402
				Net Debt	$	306,414
Net Debt to Enterprise Value
Net Debt	$	306,414
Market Equity (3)	3,323,722			Interest Coverage (TTM)(4)	6.1x
Enterprise Value	$	3,630,136		Net Debt to EBITDA - Adjusted (TTM)(5)	0.6x
				Variable Rate Debt to Total Debt	18.5%
Net Debt to Enterprise Value	8.4		%
(1) Excludes unamortized deferred financing costs of $4.0 million.
(2) Excludes accumulated depreciation of $284.7 million.
(3) Market equity includes 71,760,137 shares of the Company's common stock and 275,461 units outstanding, which are convertible into common shares, and is calculated using $46.14 per share, the closing price of the Company's common stock on June 30, 2016.
(4) Equals Adjusted EBITDA of $129.6 million divided by interest expense of $21.4 million. See page 22 for reconciliation to Adjusted EBITDA.
(5) 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.
(6) The Trust entered into interest rate swaps to effectively fix the interest rate on the term loans. The weighted average interest rates reflect the swapped (fixed) rate plus the current margin.
(7) Excludes accumulated depreciation of $284.7 million and cash of $230.4 million.

SECOND QUARTER
19

CAPITAL STRUCTURE

NOTE: At June 30, 2016, the Trust had $230.4 million of cash on hand.
Weighted Average Interest Rate of Debt Maturing Each Year (2)
	2016	2017	2018	2019	2020	2021	2022	2023	2024
Fixed Rate Debt	—%	—%	—%	2.9%	—%	3.9%	—%	—%	4.6%
Variable Rate Debt	—%	2.5%	—%	2.5%	—%	—%	—%	—%	—%
Total Debt	—%	2.5%	—%	2.7%	—%	3.9%	—%	—%	4.6%
(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. The revolver has a current balance of $0.
(2) 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.

SECOND QUARTER
20

UNSECURED SENIOR NOTE COVENANTS

as of June 30, 2016
(Amounts in thousands)
Unsecured Senior Note Covenants(1)	Requirement			Current Ratio
Total Debt to Total Asset Value	≤ 60%			19.6%
Secured Debt to Total Asset Value	≤ 40%			3.6%
Unencumbered Asset Value to Unsecured Debt	> 150%			597.7%
Interest Coverage	> 1.5x			5.69x
Calculation of Interest Coverage Ratio:
Adjusted Pro Forma EBITDA - TTM:
EdR Adjusted EBITDA(2)	$	129,622
Pro forma Adjustments - acquisitions & dispositions (1)	8,065
Total Adjusted Pro Forma EBITDA - TTM	$	137,687
Pro Forma Interest Expense - TTM:
Interest expense	$	21,355
Add back: Capitalized interest	5,568
Pro forma adjustments(1)	(2,745		)
Pro forma interest expense - TTM	$	24,178
Interest Coverage	5.69x
(1) Computed in accordance with the First Supplemental Indenture filed November 24, 2014 with the SEC.
(2) See page 22 for a reconciliation to EdR Adjusted EBITDA.

SECOND QUARTER
21

RECONCILIATION OF NON-GAAP MEASURES

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

(Amounts in thousands)	Six Months			Plus: Year			Less: Six			Trailing Twelve
	Ended			Ended			Months Ended			Months Ended
	June 30, 2016			December 31, 2015			June 30, 2015			June 30, 2016
Net income attributable to common shareholders	$	34,324		$	19,911		$	9,858		$	44,377
Straight line adjustment for ground leases	2,373			4,782			2,401			4,754
Acquisition costs	238			293			90			441
Depreciation and amortization	36,615			68,022			31,777			72,860
Gain on sale of collegiate housing assets	(23,956		)	(2,770		)	—			(26,726		)
Interest expense	8,298			24,449			11,392			21,355
Amortization of deferred financing costs	937			2,089			1,007			2,019
Interest income	(274		)	(213		)	(105		)	(382		)
Loss on extinguishment of debt	10,136			403			—			10,539
Income tax expense (benefit)	140			347			168			319
Noncontrolling interests	(40		)	171			65			66
Adjusted EBITDA	$	68,791		$	117,484		$	56,653		$	129,622
Annualize acquisitions, developments and dispositions(1)	—			—			—			8,638
Pro Forma Adjusted EBITDA	$	68,791		$	117,484		$	56,653		$	138,260
(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.

SECOND QUARTER
22

RECONCILIATION OF NON-GAAP MEASURES

Net operating income (NOI)

(Amounts in thousands)	Three months ended June 30,				Six months ended June 30
	2016		2015		2016		2015
Operating income	$	9,486	$	8,943	$	29,702	$	22,781
Less: Third-party development services revenue	467		444		950		1,041
Less: Third-party management services revenue	697		780		1,591		1,833
Plus: Development and management services expenses	2,728		2,507		5,249		5,209
Plus: General and administrative expenses, development pursuit, acquisition costs and severance	3,079		2,559		6,188		5,198
Plus: Ground leases	2,296		2,170		5,605		5,018
Plus: Impairment loss on collegiate housing properties	—		—		—		—
Plus: Depreciation and amortization	19,099		15,911		36,615		31,777
NOI	$	35,524	$	30,866	$	80,818	$	67,109

Debt to gross assets

(Amounts in thousands)	June 30, 2016			December 31, 2015
Mortgage and construction loans, excluding unamortized premium and deferred financing costs of $947 and $953 as of June 30, 2016 and December 31, 2015, respectively	$	99,316		$	205,464
Unsecured term loan, excluding unamortized deferred financing costs of $857 and $982 as of June 30, 2016 and December 31, 2015, respectively	187,500			187,500
Unsecured Senior Notes, excluding unamortized deferred financing costs of $2,192 and $2,322 as of June 30, 2016 and December 31, 2015, respectively	250,000			250,000
Total debt, excluding unamortized premium and deferred financing costs	$	536,816		$	642,964
Total assets	$	2,466,472		$	2,001,831
Accumulated depreciation(1)	284,681			270,993
Gross assets	$	2,751,153		$	2,272,824
Debt to gross assets	19.5		%	28.3		%
(1) Represents accumulated depreciation on real estate assets.

SECOND QUARTER
23

UPDATED 2016 GUIDANCE

(Amounts in thousands, except share and per share data)	Year ending December 31, 2016
	Low End			High End
Net income attributable to EdR	$	52,900		$	57,100
Gain on sale of collegiate housing assets	(23,956		)	(23,956		)
Real estate related depreciation and amortization	73,200			73,200
Equity portion of real estate depreciation and amortization on equity investees	2,800			2,800
Noncontrolling interests	250			250
Funds from operations ("FFO") available to stockholders and unitholders	$	105,194		$	109,394
FFO adjustments:
Loss on extinguishment of debt	10,136			10,136
Acquisition costs	250			250
Straight-line adjustment for ground leases (1)	4,800			4,800
FFO adjustments	15,186			15,186
Core funds from operations ("Core FFO") available to stockholders and unitholders	$	120,380		$	124,580
Net income attributable to EdR common stockholders per share – diluted	$	0.76		$	0.82
FFO per weighted average share/unit (2)	$	1.51		$	1.57
Core FFO per weighted average share/unit (2)	$	1.73		$	1.79
Weighted average shares/units (2)	69,600			69,600
(1) 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.
(2) 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.

SECOND QUARTER
24

COMMUNITY LISTING - OWNED

Name	Primary University Served	Acquisition/Development Date	# of Beds	Name	Primary University Served	Acquisition/Development Date	# of Beds
Players Club	Florida State University	Jan '05	336	3949	Saint Louis University	Aug '13	256
University Towers	North Carolina State University	Jan '05	889	Lymon T. Johnson Hall (ONE Plan)	University of Kentucky	Aug '13	301
The Reserve on Perkins	Oklahoma State University	Jan '05	732	Herman Lee Donovan Hall (formerly Central Hall II) (ONE Plan)	University of Kentucky	Aug '13	300
The Pointe	Pennsylvania State University	Jan '05	984	2400 Nueces (ONE Plan)	University of Texas at Austin	Aug '13	655
The Lofts	University of Central Florida	Jan '05	730	Roosevelt Point	Arizona State University - Downtown Phoenix	Aug '13	609
The Reserve at Columbia	University of Missouri	Jan '05	676	The Retreat at State College	Pennsylvania State University	Sept '13	587
Commons at Knoxville	University of Tennessee	Jan '05	708	The Cottages on Lindberg	Purdue University	Sept '13	745
Campus Creek	University of Mississippi	Feb '05	636	The Varsity	University of Michigan	Dec '13	415
Campus Lodge	University of Florida	Jun '05	1,115	The Lotus	University of Colorado - Boulder	Nov '11, Aug '14	235
Carrollton Crossing	University of West Georgia	Jan '06	336	109 Tower	Florida International University	Aug '14	542
River Pointe	University of West Georgia	Jan '06	504	The Oaks on the Square- Ph III	University of Connecticut	Aug '14	116
The Reserve at Saluki Pointe	Southern Illinois University	Aug '08, Aug '09	768	Frances Jewell Hall (formerly Champions Court I) (ONE Plan)	University of Kentucky	Aug '14	740
University Village on Colvin (ONE Plan)	Syracuse University	Aug '09	432	Georgia M. Blazer Hall (formerly Champions Court II) (ONE Plan)	University of Kentucky	Aug '14	427
GrandMarc at The Corner	University of Virginia	Oct '10	641	Haggin Hall (ONE Plan)	University of Kentucky	Aug '14	396
Wertland Square	University of Virginia	Mar '11	152	Woodland Glen I (ONE Plan)	University of Kentucky	Aug '14	409
Jefferson Commons	University of Virginia	Mar '11	82	Woodland Glen II (ONE Plan)	University of Kentucky	Aug '14	409
The Berk on College	University of California, Berkeley	May '11	122	The District on Apache	Arizona State University - Tempe	Sept '14	900
The Berk on Arch	University of California, Berkeley	May '11	43		Total Same-Communities		24,880
University Village Towers	University of California, Riverside	Sept '11	554
Irish Row	University of Notre Dame	Nov '11	326	The Retreat at Oxford(3)	University of Mississippi	Aug '13	668
GrandMarc at Westberry Place (ONE Plan)	Texas Christian University	Dec '11	562	Commons on Bridge(2)	University of Tennessee	June '15	150
The Reserve on Stinson	University of Oklahoma	Jan '12	612	Oaks on the Square- Ph IV(1)	University of Connecticut	Aug '15	391
Campus West (ONE Plan)	Syracuse University	Aug '12	313	The Retreat at Louisville(1)	University of Louisville	Aug '15	656
East Edge	University of Alabama	Aug '12	774	Woodland Glen III (ONE Plan)(1)	University of Kentucky	Aug '15	782
The Province	East Carolina University	Sept '12	728	Woodland Glen IV (ONE Plan)(1)	University of Kentucky	Aug '15	578
The District on 5th	University of Arizona	Oct '12	764	Woodland Glen V (ONE Plan)(1)	University of Kentucky	Aug '15	250
Campus Village	Michigan State University	Oct '12	355	The Province Boulder(2)	University of Colorado - Boulder	Sept '15	317
The Province	Kent State University	Nov '12	596	Lokal(2)	Colorado State University	March '16	194
The Suites at Overton Park	Texas Tech University	Dec '12	465	The Hub at Madison(2)	University of Wisconsin	May '16	1,036
The Centre at Overton Park	Texas Tech University	Dec '12	400		Total New-Communities		5,022
The Oaks on the Square	University of Connecticut	Aug '12, Aug '13	503		Total Owned-Communities		29,902
(1) The same-community designation for leasing purposes is different than for financial reporting purposes. These communities are considered same-community for 2016/2017 leasing purposes, as the Company managed the leasing process for both the 2015/2016 and 2016/2017 lease cycles. Total same-community beds for leasing purposes is 27,537.
(2) These properties are considered new for purposes of leasing, as we did not manage the leasing process for the 2015/2016 lease year.
(3) The Retreat at Oxford is considered new for purposes of leasing due to the development of the second phase of the property.

SECOND QUARTER
25

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
	CANACCORD|Genuity	Ryan Meliker	(212) 389-8094	rmeliker@canaccordgenuity.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	Dave Bragg	(949) 706-8142	dbragg@greenstreetadvisors.com
	Goldman Sachs	Andrew Rosivach	(212) 902-2796	andrew.rosivach@gs.com
	Hilliard Lyons	Carol Kemple	(502) 588-1839	ckemple@hilliard.com
	J.P. Morgan Securities Inc.	Anthony Paolone	(212) 622-6682	anthony.paolone@jpmorgan.com
	JMP Securities	Aaron Hecht	(415) 835-3963	ahecht@jmpsecurities.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
	UBS Securities	Nick Yulico	(212) 713-3402	nick.yulico@ubs.com

SECOND QUARTER
26

DEFINITIONS

Design beds	Represents the sum of the monthly design beds in the portfolio during the period.
FFO	Funds from operations as defined by the National Association of Real Estate Investment Trusts.
GAAP	U.S. generally accepted accounting principles.
Net apartment rent per occupied bed (NarPOB)	Represents GAAP net apartment rent for the respective period divided by the sum of occupied beds in the portfolio for each month included in the period reported.
Net debt to EBITDA - adjusted	Net debt to EBITDA - adjusted is calculated to normalize the impact of non-producing construction debt. In the calculation, net debt is total debt less cash and excludes non-producing debt related to assets under development at time of calculation. EBITDA is Pro Forma Adjusted EBITDA, which includes proforma adjustments to reflect all acquisitions, dispositions and development assets that are open as if such had occurred at the beginning of the 12 month period being presented.
Operating expense per bed	Represents community-level operating expenses excluding management fees, depreciation and amortization.
Other income per available bed	Represents other GAAP-based income for the respective period divided by the sum of the design beds in the portfolio for each of the included months. Other income includes service/application fees, late fees, termination fees, parking fees, transfer fees, damage recovery, utility recovery, and other misc.
Physical occupancy	Represents a weighted average of the month end occupancies for each month included in the period reported.
Regional Definitions	Regions are defined as follows: Mid-Atlantic: North Carolina, Pennsylvania, Connecticut, New York, Virginia; Midwest: Oklahoma, Missouri; North: Michigan, Ohio, Indiana, Illinois; South Central: Texas, Tennessee, Mississippi, Kentucky; Southeast: Florida, Alabama, Georgia; West: Arizona, California, Colorado.
Revenue per occupied bed (RevPOB)	Represents total revenue (net apartment rent plus other income) for the respective period divided by the sum of occupied beds in the portfolio for each month included in the period reported.
Same community	Includes communities that have been owned for more than a year as of the beginning of the current fiscal year.

SECOND QUARTER
27

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.

SECOND QUARTER
28