Education Realty Trust, Inc
), a real estate investment trust (REIT), has recently announced a
secondary offering of 13.5 million shares to enhance its liquidity.
The company has also decided to grant the underwriters a 30-day
option to purchase up to an additional 2.0 million shares to cover
the over-allotment options.
Education Realty intends to use the net proceeds from the
offering to repay debt, fund its development pipeline and for
acquisitions and general working capital purposes.
Earlier, during second quarter 2012, Education Realty sold
approximately 1.4 million shares of common stock at a
weighted average share price of $11.02. The company generated
net proceeds of $15.4 million that were mainly utilized to
fund the then ongoing projects and reduce debt.
As of June 30, 2012, the company had cash and cash equivalents
totaling $8.4 million and $145.0 million available on its unsecured
revolving credit facility.
Education Realty is one of the largest owners, developers and
managers of collegiate housing in the US. The company owns or
manages 60 communities in 23 states with more than 34,900 beds in
more than 11,400 units. The Company's ideal acquisition targets
generally are located in markets that have stable or increasing
collegiate populations and high barriers to entry.
Education Realty currently retains a Zacks #2 Rank, which
translates into a short-term Buy rating. We also have a long-term
Neutral recommendation on the stock. One of its competitors,
American Campus Communities, Inc
) holds a Zacks #3 Rank, which implies a short-term Hold rating
AMER CAMPUS CTY (ACC): Free Stock Analysis
EDUCATION RLTY (EDR): Free Stock Analysis
To read this article on Zacks.com click here.