A Very Solid Business

Between media companies looking to schools for new revenue streams and charter schools as investment opportunities, I think I’m in the wrong end of the education sector.

Charter schools, as you might remember, were supposed to be innovative alternatives to “traditional” schools, funded with public money and often serving poorer communities.

However, according to something called Entertainment Properties Trust, they might also be a nice addition to your investment portfolio.

What is Entertainment Properties Trust? According to its website, it is “a specialty real estate investment trust (REIT) that invests in properties in select categories which require unique industry knowledge, and offer stable and attractive returns.”

And the website also says this: “Our investment portfolio of nearly $3 billion includes megaplex movie theatres and adjacent retail, public charter schools, and other destination recreational and specialty investments. This portfolio includes over 160 locations spread across 34 states with over 200 tenants.”

The video interview with the CEO embedded in the Answer Sheet post is quite strange, although not especially unsurprising given the concerted effort of politicians to sell off as many public resources as possible to the highest bidder.

I especially enjoyed this little piece of analysis.

Well I think it’s a very stable business, very recession-resistant. It’s a very high-demand product. There’s 400,000 kids on waiting lists for charter schools … the industry’s growing about 12-14% a year. So it’s a high-growth, very stable, recession-resistant business. It’s a public payer, the state is the payer on this, uh, category, and uh, if you do business with states with solid treasuries. then it’s a very solid business.

Pick companies in the right states, the ones willing to divert lots of public money into charters, and you have a winning investment.

What we don’t get from the charter industry, and most independent charters as well, is a better education for the money spent, one of the claims often heard from their political advocates.

One thought on “A Very Solid Business

  • August 20, 2012 at 9:22 pm

    It blows my mind that the actual school would become a for-profit enterprise. How is it that we are ALLOWING them to profit form our kids? They are no longer students but widgets and product to move at the lowest possible cost for the share holders. And the disconnected, the uninformed, and the apathetic just help this along.


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