Education Realty Trust (EDR - Snapshot Report) recently announced the acquisition of a four-storied apartment, namely 3494 Lindell, in St. Louis, Missouri for $28.45 million in cash.

The Lindell Property is located adjacent to the St. Louis University and is an affluent area with enrollments of approximately 13,200 undergraduate and graduate students and also attracts residents from St. Louis University. The property is currently 91.0% occupied.

The apartment community provides all the luxury for its residents, including a large fitness center, a swimming pool, 197 studios with one or two bedroom apartments and many other facilities. With the continuous investment in the collegiate housing industry, Education Realty expects to create long-term value for its shareholder.

Education Realty reported third quarter 2011 FFO (funds from operations) of 1 cent per share compared with a loss of 55 cents in the year-earlier quarter. Funds from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

Education Realty is a real estate investment trust (REIT) that develops, acquires, owns, and manages student housing communities located in close proximity to university campuses in the United States. The company manages 61 communities in 23 states with more than 34700 beds across more than 11,200 units.

Education Realty currently retains a Zacks #2 Rank, which translates into a short-term Buy rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, American Campus Communities Inc (ACC - Snapshot Report), also holds a Zacks #2 Rank.