Tight state budgets and a lack of available capital are resulting in limited student housing, creating investment opportunities as post-secondary education enrollment and attendance are on the rise, says Ted W. Rollins, CEO of Campus Crest Communities, Inc. (CCG).
“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,” Rollins said.
Rollins says Campus Crest Communities focuses on creating a higher-quality living experience within the limited supply of student housing, CCG has tremendous buying power and continued year-over-year improved performance and the company is currently engaging in a pipeline of 80 potential projects.
“If you look at our first-quarter FFO, we made $5.1 million. We have great positive cash flow. We pay an annual dividend, which produces a yield of about 5% for our shareholders. This is in the higher end of the range for what most companies pay. In addition to that, we’re lowly leveraged. We only have somewhere on the order of 30% leverage,” Rollins said.
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