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EdR's 2015/16 Leasing Report: Revenues & Occupancy Rise

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Memphis, TN-based residential real estate investment trust ("REIT") EdREDR delivered strong results for the 2015/2016 leasing cycle. The leading provider of collegiate housing experienced continued improvement in occupancy as well as net rental revenue during the cycle.

Notably, EdR's same-community portfolio opened the 2015/2016 cycle with occupancy of 97%, comparing favorably with last year's opening occupancy of 96.6%. Further, a 3.4% year-over-year rise in net rental rates drove a 3.8% increase in net rental revenue for the leasing term.

This term's growth in rental revenue supports the uptrend in EdR's revenues, which has grown at a compounded annual rate of 3.9% over the last 5 years.

Moreover, Christine Richards, executive vice president and chief operating officer at EdR, expects the trend to continue into the next leasing term as well, given "favorable supply trends" in the markets for 2016.

Also, an ever-growing demand for student housing led by increasing enrollments complement such supply. In fact, analysts at Axiometrics, Inc, a Dallas-based data firm, anticipate over 200,000 new students in the fall of 2016.

EdR is a self-administered and self-managed REIT that serves 81 communities with more than 42,000 beds in 52 universities spread across 23 states.

EdR currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the residential REITs space include Armada Hoffler Properties, Inc. AHH , Essex Property Trust Inc. ESS and Equity LifeStyle Properties, Inc. ELS . All these stocks hold a Zacks Rank #2 (Buy).

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EDUCATION RLTY (EDR): Free Stock Analysis Report

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ARMADA HOFFLER (AHH): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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