Education Realty Trust, Inc. (NYSE:EDR) Occupancy Rate Goes Up


Dallas, Texas 10/08/2013 (Financialstrend) – Since the beginning of this year’s academic year, the companies and organizations involved in student housing sector have been under tremendous pressure to show profits. This is primarily related to the massive over supply of rental properties pushing the rentals of these once good steady revenue earners down to unsustainable levels. As of August 31 a total of 51,000 new student accommodations were being refurbished as per a survey conducted by Axiometrics. These numbers do not match up when compared against the new IPEDs which are entering the university system. The student population this year is expected grow slower in turn increasing the like hood of rentals going down further.  Education Realty Trust, Inc. (NYSE:EDR) seems to be better placed in comparison to competition to weather this storm based on analysts tracking the stock. On October 4, analysts at Wunderlich have gone on to take a bullish position on a few of the stock in the student housing sector. It has recommended a BUY on Education Realty Trust (EDR).

Analysts show a thumbs up

The Stock of this REIT / student residence company was trading at $8.9 per share down 0.45% compared to previous day close as on October 7. At current valuations, the stock is down 23% from its 52 week high valuations. It is closer to its 52 week low pricing of $8.3 it had reached earlier this year.

Leasing figures for 2013-14 academic year

The company has a forward yield payout of 4.94% for the year with $0.44 being paid out as dividend over the past 12 months trailing period. On September 30, it had released the leasing numbers for the academic year 2013 -2014. Occupancy rates had gone up 3% to 94.1% as compared to 91.1% it had achieved in the previous academic year. It also managed to get its rentals up by 2% in comparison to previous year.