Education Realty Trust "neutral," estimates raised

03/05/07 - Robert W. Baird

NEW YORK, March 5 (newratings.com) - Analysts at Robert W Baird reiterate their "neutral" rating on Education Realty Trust Inc (EDR), while raising their estimates for the company. The target price is set to $51.

In a research note published this morning, the analysts mention that the company’s expensive variable-rate debt is likely to be reduced by the estimated 2007 asset sales of approximately $50 million. An economic slowdown would lead to an improvement in EDR's position relative to its apartment REIT peers, since student housing operations have a much lower correlation to economic activity, the analysts say. Third-party development and construction contracts for projects underway or identified are expected to begin over the next year, Robert W Baird adds. The FFOPS estimates for 2007 and 2008 have been raised from $0.86 to $0.90 and from $0.92 to $1.02, respectively.