As the academic year begins, campus housing REITs will be opening their doors to swarms of students across the country.
Companies in this sector of the REIT market provide housing for college students. As space-challenged institutions of higher education grapple with more students than available dormitory rooms, industry observers say that more student housing options is a necessity.
Campus Crest Communities Inc. (NYSE: CCG) currently has 27 properties up and running, with seven in construction, and more than 25 in the development phase. The company opened six new housing facilities this year and plans to open between six and eight next year, according to Ted Rollins, co-chairman and CEO of Campus Crest.
“I would say that the demand has been steady, and there’s been a lot of growth in this sector,” Rollins said. That demand is coming from college enrollment growth, including an increase in the number of foreign students coming to the United States to study, according to Rollins.
He said the demographics of campus populations have also changed. Younger students are staying in college longer, and older students returning to college.
“Trend analysts have said this is the highest percentage of students attending higher education institutions full-time,” Rollins said.
Campus Construction Abounds
It’s been a busy summer for campus housing REITs, and plans are in the works for more developments to open in time for the 2012 school year. In July 2011, Campus Crest announced two new housing projects at Auburn University and the University of Maine. That same month, Education Realty Trust Inc. (NYSE: EDR) announced plans to begin construction on a second campus housing development at Syracuse University.
Randy Churchey, the company’s president and chief executive officer, said the new development will be their second at the university and third in Syracuse.
American Campus Communities (NYSE: ACC) also announced the beginning of construction on several projects in July, stretching from Texas to New York to Wyoming.
Continued, link to article: http://www.reit.com/Articles/Back-to-School.aspx
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