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Education Realty Trust (Education Realty Trust) ROE % : 12.90% (As of Jun. 2018)


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What is Education Realty Trust ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Education Realty Trust's annualized net income for the quarter that ended in Jun. 2018 was $253.7 Mil. Education Realty Trust's average Total Stockholders Equity over the quarter that ended in Jun. 2018 was $1,966.0 Mil. Therefore, Education Realty Trust's annualized ROE % for the quarter that ended in Jun. 2018 was 12.90%.

The historical rank and industry rank for Education Realty Trust's ROE % or its related term are showing as below:

EDR's ROE % is not ranked *
in the REITs industry.
Industry Median: 4.195
* Ranked among companies with meaningful ROE % only.

Education Realty Trust ROE % Historical Data

The historical data trend for Education Realty Trust's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Education Realty Trust ROE % Chart

Education Realty Trust Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.58 5.49 1.79 2.96 2.60

Education Realty Trust Quarterly Data
Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.36 -0.03 5.50 8.85 12.90

Competitive Comparison of Education Realty Trust's ROE %

For the REIT - Residential subindustry, Education Realty Trust's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Education Realty Trust's ROE % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Education Realty Trust's ROE % distribution charts can be found below:

* The bar in red indicates where Education Realty Trust's ROE % falls into.



Education Realty Trust ROE % Calculation

Education Realty Trust's annualized ROE % for the fiscal year that ended in Dec. 2017 is calculated as

ROE %=Net Income (A: Dec. 2017 )/( (Total Stockholders Equity (A: Dec. 2016 )+Total Stockholders Equity (A: Dec. 2017 ))/ count )
=47.44/( (1800.019+1844.736)/ 2 )
=47.44/1822.3775
=2.60 %

Education Realty Trust's annualized ROE % for the quarter that ended in Jun. 2018 is calculated as

ROE %=Net Income (Q: Jun. 2018 )/( (Total Stockholders Equity (Q: Mar. 2018 )+Total Stockholders Equity (Q: Jun. 2018 ))/ count )
=253.656/( (1856.429+2075.529)/ 2 )
=253.656/1965.979
=12.90 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Jun. 2018) net income data. ROE % is displayed in the 30-year financial page.


Education Realty Trust  (NYSE:EDR) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Jun. 2018 )
=Net Income/Total Stockholders Equity
=253.656/1965.979
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(253.656 / 305.528)*(305.528 / 3199.335)*(3199.335 / 1965.979)
=Net Margin %*Asset Turnover*Equity Multiplier
=83.02 %*0.0955*1.6273
=ROA %*Equity Multiplier
=7.93 %*1.6273
=12.90 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Jun. 2018 )
=Net Income/Total Stockholders Equity
=253.656/1965.979
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (253.656 / 164.824) * (164.824 / 18.036) * (18.036 / 305.528) * (305.528 / 3199.335) * (3199.335 / 1965.979)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.539 * 9.1386 * 5.9 % * 0.0955 * 1.6273
=12.90 %

Note: The net income data used here is four times the quarterly (Jun. 2018) net income data. The Revenue data used here is four times the quarterly (Jun. 2018) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Education Realty Trust ROE % Related Terms

Thank you for viewing the detailed overview of Education Realty Trust's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Education Realty Trust (Education Realty Trust) Business Description

Traded in Other Exchanges
N/A
Address
Education Realty Trust Inc is a real estate investment trust engaged in the acquisition, development, and management of collegiate housing communities located near university campuses throughout the United States. In terms of the total number of residential communities and the total number of beds, the majority of the company's real estate portfolio is located in the Mid-Atlantic and South Central regions of the United States. Nearly all of Education Realty's revenue is derived from short-term collegiate housing leases. Most of this revenue is generated by the company's holdings in the Mid-Atlantic and South Central regions. Real estate markets surrounding universities in Kentucky and Texas represent some of Education Realty's largest individual markets.
Executives
John T Thomas director 309 N. WATER STREET, SUITE 500, MILWAUKEE WI 53202
Brewer Edwin B Jr officer: Executive VP and CFO C/O EDUCATION REALTY TRUST, INC., 999 SOUTH SHADY GROVE ROAD, SUITE 600, MEMPHIS TN 38120
Howard A Silver director 999 SOUTH SHADY GROVE ROAD, SUITE 600, MEMPHIS TN 38120
Randy L Churchey director, officer: Chairman and CEO 999 SOUTH SHADY GROVE ROAD, SUITE 600, MEMPHIS TN 38120
John V Arabia director 200 SPECTRUM CENTER DRIVE, SUITE 2100, IRVINE CA 92618
Kimberly Schaefer director C/O SEAWORLD ENTERTAINMENT, INC., 6240 SEA HARBOR DR, ORLANDO FL 32821
Randall H Brown officer: Exec. VP, CFO and Treasurer 2100 REXFORD ROAD, SUITE 414, CHARLOTTE NC 28211