American Campus Communities, Inc. (ACC), Education Realty Trust, Inc. (EDR): College Attendance Falls, Should Student Housing REITs Worry?

The around 5.6% yield puts this student housing REIT’s yield at the top of the heap. After the large acquisition, the company is focusing on building to spur growth. Management has targeted 80 sites for consideration over the next five years. About 30 have gotten off the drawing board and could be built over the next three years.

The company’s rent roll has grown nicely since its IPO, though its dividend hasn’t really seen much growth. So growth and income investors might find Campus Crest interesting, but rapid dividend growth shouldn’t be expected.

When Bad News is Good News

American colleges are facing a number of headwinds. However, that bad news should be good news for student housing REITs. Of the trio, American Campus and Education Realty appear to be most aggressive in their efforts to get “on campus.” That said, Campus Crest has gained scale quickly and has a notable pipeline of projects in the works. Investors should take a look at all three.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article College Attendance Falls, Should Student Housing REITs Worry? originally appeared on Fool.com and is written by Reuben Brewer.

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