I just finished reading the latest report from management. Was disappointed to hear that only 42% of tenants renew their leases. Also, hearing that 2 properties where occupancy dropped almost 30% could cause such a ripple effect to the entire performance.
While they are growing by purchasing and constructing new properties this does not seem to be helping investors in terms of additional cash distributions or share appreciation. Disappointing in my opinion.
I believe the head wind for campus housing like this is the rising costs of education: tuition, books, etc.
In your reading you overlooked the comment that renewal rates have been rising year over year, so obviously a 42% renewal rate is an improvement, not the disappointment you make it out to be. Renewal rates for college students cannot be compared to conventional apartments.
This is college housing, so usually graduating seniors or juniors. Kids in college live in one place one year, then go somewhere else. Not surprised at the 42% numbers. Occupancy is still over 91-92% overall which is very healthy. The reason education costs are rising so fast is because of the demand, especially internationally, for US college educations. Under 10 is a buy imho
what? I have glanced through the CC transcript. and I don't think I read what you are saying. 42% renewal might be about next year 2014-2015... and we are still a way off from that. Anyway... I will read it again later.
Read the latest quarterly meeting report.
If you read my post it said where I got the number.
My concern is how management purchased two major facilities and the same report said that occupancy has dropped 30%. Those acquisitions are going to hurt this portfolio for more than just 2013. I would suggest you look for another security with a better yield. Take a look at LINE, ARP and BBEP.