Back to top

Image: Bigstock

EdR Starts Community Construction at Iowa State University

Read MoreHide Full Article

Student housing REIT, EdR (EDR - Free Report) , in a joint venture with developer, River Caddis Development, has commenced construction on a community pedestrian to the Iowa State University. With this top-tier university witnessing sound growth, the community is expected to enjoy a solid demand and become a notable asset in EdR’s portfolio.

Specifically, EdR will enjoy 70% ownership and management of the $51.9-million development. This community will lead to the addition of 537 pedestrian-to-campus beds in a combination of studio, one-, two-, three- and four-bedroom floor plans to the EdR portfolio. The company is planning for a summer 2018 delivery.

The project will comprise 157 apartment units and 7,500 square feet of ground level retail space. There will be a vast range of amenities like an outdoor hot tub, club room, fitness center, study rooms, leasing lounge and residential parking.  

Unlike residential REITs like AvalonBay Communities, Inc. (AVB - Free Report) and Equity Residential (EQR - Free Report) , whose rental units are open for leasing to all, student housing REITs such as American Campus Communities and EdR lease their real estate units to students. Hence, such real estates are generally set up in places in proximity to colleges and universities.

Moreover, enrolment growth acts as a major driver for student housing assets. In fact, with a higher education earnings gap – millennials with high school diploma earning just 62% of what the college graduates are making – enrolment statistics is likely to get a boost.

Particularly, the Iowa State University, founded in 1858, is a public flagship land-grant and space-grant university in Ames, IA. Its total enrolment in the fall of 2016 was 36,660. In addition, the university’s enrolment has increased by more than 11,000 students since the beginning of the 2006 academic year.

Currently EdR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

However, shares of EdR underperformed the Zacks categorized REIT and Equity Trust – Residential industry over the past three months. Over this time frame, EdR descended 4.8% against 2.1% gain of the industry.



Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


AvalonBay Communities, Inc. (AVB) - free report >>

Equity Residential (EQR) - free report >>

Endeavor Group Holdings, Inc. (EDR) - free report >>

Published in