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What Is EdR’s Strategy to Enhance Shareholder Returns?

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Nov. 27 2015, Updated 10:06 a.m. ET

Sustainable growth strategy

In order to maximize long-term stockholder value, EdR (EDR) plans to achieve sustainable long-term growth in cash flows. The company believes that it can achieve its objective by continuing to implement its investment and operating strategies.

To achieve its long-term business objective, the company intends to pursue the following strategies:

  • acquire quality student housing properties that meet its strategic investment objective
  • selectively develop student housing properties on its own account
  • enhance net operating income from its owned properties
  • strengthen its third-party management services and development consulting services
  • maximize profitability through cost control measures

The company plans to acquire properties primarily in markets that have stable or increasing collegiate populations and high barriers to entry.

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Operating strategy

EdR plans to strengthen its net operating income of its student housing communities through a number of operational strategies including revenue maximization through intense marketing efforts, cost control measures, maintaining asset quality, and developing strategic relationships with educational institutions.

Strategy enhances market position

EdR (EDR) believes that its operating strategy has produced positive results in recent years. The company expects that the above strategy will help it to increase its profitability further while maintaining a strong balance sheet and liquidity position in the years to come.

The strategy is also expected to help thwart competition from other major apartment and student housing players like AvalonBay Communities (AVB), Equity Residential (EQR), and American Campus Communities (ACC). EdR makes up 0.20% of the SPDR DJ Wilshire Global Real Estate ETF (RWO).

In the next article, we’ll analyze EdR’s property acquisitions and development.

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