J.P. Morgan Lowering Estimates For Education Reality Trust

In a report published by J.P. Morgan, it's lowering estimates for Education Reality Trust EDR following 4Q results.

J.P. Morgan reported that, after updating its model following 4Q earnings, it is lowering its 2011 and 2012 FFO estimates for EDR. “Our new estimates are $0.40 and $0.43 – down from prior estimates of $0.42 and $0.44, respectively. Note that our FFO estimates correspond to EDR's “core” FFO, which excludes the impact of the non-cash straight-lining of the ground rent payments at two of EDR's assets. The key driver behind our lower estimates is the earnings drag from holding cash from its January equity offering longer than we previously assumed. Note that our “reported” FFO estimate in each quarter is $0.02/share lower than EDR's “core” FFO in each quarter. Our new 2011 and 2012 AFFO estimates are $0.35 and $0.42, respectively.”

Education Reality Trust closed on Friday at $7.85.