Education Realty Trust, Inc (EDR), 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 (ACC) holds a Zacks #3 Rank, which implies a short-term Hold rating
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