NEWTOWN SQUARE, Pa., Aug. 6 /PRNewswire-FirstCall/ -- GMH Communities
Trust (NYSE: GCT), one of the leading providers of housing, lifestyle and
community solutions for college students and members of the U.S. military
and their families, today reported results for the second quarter and
six-month period ended June 30, 2007.
Second Quarter 2007 Financial Highlights:
- Funds from operations (FFO) increased to $12.5 million, or $0.17 per
diluted share, for the second quarter of 2007, from $9.6 million, or
$0.13 per diluted share, for the comparable period last year.
- Net income increased to $24.1 million, or $0.58 per diluted share, for
the second quarter of 2007, as compared to a net loss of $541,000, or
$(0.01) per diluted share, for the comparable period last year.
- Net income from continuing operations increased to $12.4 million, or
$0.30 per diluted share, as compared to a net loss of $810,000, or
$(0.02) per diluted share, for the comparable period last year.
- The Company paid a regular quarterly dividend of $0.1650 per share on
July 13, 2007, and management has indicated that this quarterly
dividend is sustainable through the remainder of 2007.
Significant Operating Achievements and Recent Developments:
- As of August 6, 2007, pre-leasing for the Company's wholly-owned
student housing portfolio for 2007-2008 academic year was approximately
87%, as compared to approximately 88% as of the same time last year.
The Company projects an overall net rental rate increase of 2.6% for
the 2007-2008 academic year, when compared with the net rate archived
for the same period last year.
- During May 2007, terminated former line of credit with Wachovia Bank,
otherwise scheduled to mature on June 1, 2007, which had been
secured by all of the Company's student housing and military housing
assets. Entered into three-year $100.0 million revolving note facility
with Merrill Lynch, Pierce, Fenner & Smith Incorporated. Note facility
is secured solely by military housing cash flows from limited number of
projects in operation or under exclusive negotiation and provides
greater flexibility under debt covenants than former line of credit.
- Completed formation of joint venture with Fidelity Real Estate Group
covering six student housing properties, resulting in net proceeds
totaling approximately $61.3 million. Completed sale of five student
housing properties to SCI Real Estate Investments, resulting in
approximately $57.4 million in net proceeds. Entered into management
agreements covering the Fidelity joint venture properties and SCI sale
properties, permitting retention of significant management fee income
in future periods. more...
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