Campus Crest Communities Inc
), a real estate investment trust (REIT), recently completed
the acquisition of the remaining 50.1% stake in The Grove at
Moscow, Idaho, and the remaining 80.0% stake in The Grove at
Valdosta, Georgia from its joint venture partner, Harrison Street
Real Estate, for a total consideration of $16.2 million. The
company also repaid approximately $27.3 million of mortgage debt
secured by these properties.
The acquisition was funded through $43.5 million proceeds
generated from its share offering program.
This is a strategic move by the company as with the completion
of this deal, Campus Crest has taken over wholly-owned interests in
seven properties from Harrison Street and increased its
wholly-owned operating properties from 27 to 29. The company
continues as a joint venture partner in four additional assets with
The selective acquisition of the Harrison Street joint venture
assets continue to be an excellent opportunity for Campus Crest to
grow its wholly-owned portfolio. These assets demonstrate strong
pre-leasing and operational results and are located at universities
with attractive market uniqueness.
Campus Crest reported first quarter 2012 FFO (funds from
operations) of 15 cents per share compared with 17 cents per share
in the year-earlier quarter. Funds from operations, a widely used
metric to gauge the performance of REITs, is obtained after adding
depreciation and amortization and other non-cash expenses to net
Campus Crest is a developer, builder, owner and manager of
high-quality, purpose-built student housing properties located
close to campuses in targeted U.S. markets.The company rents
student housing properties, offers student housing services and
provides construction, development and management services.
Campus Crest currently retains a Zacks #2 Rank, which translates
into a short-term Buy rating. We have a long-term Neutral
recommendation on the stock. One of its competitors,
Education Realty Trust
), also carries a Zacks #2 Rank.
CAMPUS CREST CM (CCG): Free Stock Analysis
EDUCATION RLTY (EDR): Free Stock Analysis
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