TWST: Please give us a brief history of Campus Crest Communities and an overview of the company and its operations today.

Mr. Rollins: We started about seven years ago. We basically looked at the student housing market, and it was apparent that there was a real need for our product - not only in primary markets, but even more so in secondary markets, which is our main focus. If you think about it in terms of any given state, you'll have a flagship campus - for example, in North Carolina, where we're based, UNC Chapel Hill is the flagship - but you'll also have a lot of great schools like UNC Wilmington, UNC Charlotte, UNC Asheville, these are all schools that need additional beds to continue to grow or to replace some obsolescent beds on campus. That really has been our primary target. We've spent seven years working on these markets, such as UNC secondary schools, or in states such as Texas, where we have a large number of properties.

If you look at the industry as a whole, there are two general comments that you can make. One is that there is a limited supply. It's constrained because of the lack of capital available, and it's constrained with state budgetary cuts over the last few years. But at the same time, there is a growing demand. There are more kids going to college. They're staying longer. And although the Baby Boom's children, the Echo Boom, growth is dipping slightly over the next few years, this attendance is still at record levels. In addition to that, if you look at total enrollment, growth is continuing because the graduation rate at high schools is up. And of these graduates, a higher percentage are electing to attend college full time. In addition, foreign enrollment is on the rise. So those components are pretty compelling.