MEMPHIS, Tenn., Nov. 28, 2005 (PRIMEZONE) -- Education Realty Trust, Inc. (NYSE:EDR), America's most experienced provider of collegiate student housing, today provided annual guidance for 2006.
Based on the judgment and current expectations of the management team, EDR anticipates funds from operations (FFO) in the range of $0.97 to $1.02 per diluted share for 2006. The estimate reflects internal growth from rising occupancy and rental rates, development and third-party management activities, exclusive of anticipated acquisitions. EDR continues to review a robust pipeline of opportunities with a discerning eye for acquisitions that foster the company's prudent growth.
In addition, EDR affirmed its commitment to a dividend target of $1.19 per diluted share for 2006, a continuation of its existing annualized dividend target.
This 2006 guidance is based on a number of assumptions. These assumptions include expected 2006 revenues of $111.1 million to $112.3 million from student housing rentals, third-party development consulting services and third-party management services and estimated expenses of $122.5 million to $122.8 million for student housing rental operations, selling, general and administrative costs, depreciation, amortization and interest, as well as the timely closing of the pending 13-property acquisition from Place Properties, L.P., among others.
More details about the company's 2006 guidance are included in the financial table with this release.
About Education Realty Trust
Education Realty Trust is one of America's largest owners and operators of collegiate student housing, owning and/or managing approximately 29,099 beds at 44 properties serving 36 universities around America and developing communities with another 5,620 beds. EDR is one of the largest real estate investment trusts (REITs) focused solely on collegiate student housing, and is the nation's most experienced provider of collegiate student housing, as the successor to the first national company to own, build and operate collegiate student residences. For more information about EDR, please visit the company's web site at www.educationrealty.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
Statements regarding the company's 2006 outlook are forward-looking. Forward-looking statements are based on current expectations. Actual results may differ materially, especially in the uncertain economic environment, and may be affected by many factors, including: the timely completion of the company's acquisition from Place Properties L.P. and the ability of the company to successfully acquire additional properties at favorable terms; the successful integration of acquired properties into the company's portfolio; the ability of the company to timely register the shares of its common stock issued in a private placement in September 2005; the occupancy levels and the leasing rates achieved at the company's student housing communities; the realization of development services revenue throughout the construction period of development projects; interest rates; the amount of income recognized by the taxable REIT subsidiary and any corresponding income tax expense, and other factors that are described in the company's Annual Report on Form 10-K for the year ended December 31, 2004 under the heading "Business - Risk Factors." Forward-looking statements speak only as of the date on which they are made, and the company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
Education Realty Trust, Inc.
Reconciliation of Projected 2006 Diluted FFO to Projected
2006 Net Income (Loss)
(In thousands, except for share and per share data)
2006
Low Range High Range
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Net Income $ (11,621) $ (10,191)
Add back:
Depreciation &
Amortization 39,192 39,192
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Funds from Operations (FFO) $ 27,571 $ 29,001
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FFO/share $ 0.97 $ 1.02
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Weighted-average
potentially dilutive
shares/units 28,302,228 28,302,228