Educational Development Corp to sell headquarters for $32.5 million

TULSA - Educational Development Corporation (NASDAQ:EDUC), currently trading at $1.04 with a market capitalization of $8.93 million, has executed a Commercial Real Estate Contract to sell its headquarters and distribution warehouse in Tulsa, Oklahoma for $32.5 million, the company announced Thursday. According to InvestingPro data, this sale value represents more than 3.5 times the company’s current market value.

The sale of the property, known as the Hilti Complex, will provide funds to pay off the company’s outstanding term loans and revolving loan under its Credit Agreement. With total debt standing at $31.37 million according to InvestingPro data, this transaction represents a crucial step in strengthening the company’s balance sheet. The transaction does not include an adjacent excess land parcel, which will remain under EDC’s ownership.

As part of the agreement, EDC will assign existing tenant leases to the buyer and execute a new triple-net lease for its occupied space in the complex. The property consists of multiple buildings totaling 402,000 square feet on 37 acres.

Approximately 183,800 square feet is currently occupied by Hilti under a 15-year lease, while Crusoe AI leases about 110,000 square feet under a 10-year agreement.

The buyer, whose identity has not been disclosed, will have 45 days from August 18 to complete due diligence. Closing is expected 45 days after the due diligence period concludes. The contract does not include a financing contingency.

EDC’s new lease terms will span 10 years at an initial rate of $8.00 per square foot with 2.5% annual increases. The company will have two five-year renewal options.

"Selling the Hilti Complex and reducing our borrowings is in the best interest of our shareholders," said Craig White, President and CEO of Educational Development Corporation, in the press release. "The interest saved on the reduced borrowings will exceed our monthly rental payments." Despite current challenges reflected in negative earnings, the company maintains impressive gross profit margins of 59.75%. For deeper insights into EDUC’s financial health and additional analysis, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with detailed metrics and expert analysis.

In other recent news, Educational Development Corporation reported its second-quarter 2025 earnings, noting a decrease in revenue alongside a slight improvement in net loss. These financial results were shared during an earnings call where the company discussed its ongoing strategic initiatives to stabilize operations in a challenging market. Additionally, Educational Development Corporation announced an extension of its credit agreement maturity date with BOKF, NA. The Ninth Amendment to the existing credit agreement extends the maturity date on its revolving loan to September 19, 2025. This amendment, effective from July 11, aligns the revolving loan maturity with the company’s existing term loans related to its real estate. These developments reflect the company’s efforts to manage financial obligations and navigate current economic conditions.

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