Exhibit 99.2
Fourth Quarter 2018 | 
| 1 |
Forward Looking Statements
This Supplemental Information package contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). These forward-looking statements include, without limitation, statements about our estimates, expectations, predictions and forecasts of our future business plans and financial and operating performance and/or results, including our full-year 2019 earnings guidance and the assumptions underlying such guidance, our ability to successfully source, structure, negotiate and close investments in and acquisitions of self-storage facilities, our ability to fund our outstanding future investment commitments, the availability, terms and our rate of deployment of equity capital and our ability to increase borrowing base of our credit facility, as well as statements of management’s goals and objectives and other similar expressions concerning matters that are not historical facts. When we use the words “may,” “should,” “could,” “would,” “predicts,” “potential,” “continue,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” or similar expressions or their negatives, as well as statements in future tense, we intend to identify forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, beliefs and expectations, such forward-looking statements are not predictions of future events or guarantees of future performance and our actual financial and operating results could differ materially from those set forth in the forward-looking statements. Some factors that might cause such differences are described in the section entitled “Risk Factors” in our most recent Annual Report on Form 10-K, and those set forth in our other reports and information filed with the Securities and Exchange Commission (“SEC”), which factors include, without limitation, the following:
| · | | our ability to successfully source, structure, negotiate and close investments in and acquisitions of self-storage facilities; |
| · | | changes in our business strategy and the market’s acceptance of our investment terms; |
| · | | our ability to fund our outstanding and future investment commitments; |
| · | | our ability to complete construction and obtain certificates of occupancy for self-storage development projects in which we invest; |
| · | | the future availability for borrowings under our credit facility (including borrowing base capacity and the availability of the accordion feature); |
| · | | availability, terms and our rate of deployment of equity and debt capital; |
| · | | our manager’s ability to hire and retain qualified personnel; |
| · | | changes in the self-storage industry, interest rates or the general economy; |
| · | | the degree and nature of our competition; |
| · | | volatility in the value of our assets carried at fair market value; |
| · | | potential limitations on our ability to pay dividends at historical rates; |
| · | | limitations in our existing and future debt agreements on our ability to pay distributions; |
| · | | the impact of our outstanding preferred stock on our ability to execute our business plan and pay distributions on our common stock; and |
| · | | general volatility of the capital markets and the market price of our common stock. |
Given these uncertainties, undue reliance should not be placed on our forward-looking statements. We assume no duty or responsibility to publicly update or revise any forward-looking statement that may be made to reflect future events or circumstances or to reflect the occurrence of unanticipated events. We urge you to review the disclosures concerning risks in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent Annual Report on Form 10-K and in other documents that we file from time-to-time with the SEC.
Non-GAAP Financial Measures
Adjusted Earnings is a non-GAAP measure and is defined as net income attributable to common stockholders plus stock dividends to preferred stockholders, stock-based compensation expense, depreciation and amortization on real estate assets, loss on modification of debt, and other expenses. Management uses Adjusted Earnings and Adjusted Earnings per diluted share as key performance indicators in evaluating the operations of the Company's business. The Company is a capital provider to self-storage developers and believes that these measures are useful to management and investors as a starting point in measuring its operational performance because they exclude various equity-based payments (including stock dividends) and other items included in net income that do not relate to or are not indicative of its present and future operating performance, which can make periodic and peer analyses of operating performance more difficult. The Company’s computation of Adjusted Earnings and Adjusted Earnings per share may not be comparable to other key performance indicators reported by other REITs or real estate companies. Reconciliations of Adjusted Earnings and Adjusted Earnings per share to Net income attributable to common stockholders and Earnings per share, respectively, are provided in the attached table entitled “Calculation of Adjusted Earnings.”
Fourth Quarter 2018 |
| 2 |
Press Release – February 2019
Jernigan Capital Reports Full-Year Earnings per Share and Adjusted Earnings per Share Above
Midpoint of Guidance Range; Introduces 2019 Guidance
MEMPHIS, Tennessee, February 27, 2019 / Business Wire / Jernigan Capital, Inc. (NYSE: JCAP), a leading capital partner for self-storage entrepreneurs nationwide, today announced results for the quarter and year ended December 31, 2018 and introduced earnings per share and adjusted earnings per share guidance for 2019.
Fourth Quarter Highlights include:
| § | | Earnings per share and adjusted earnings per share of $0.87 and $1.04, respectively. |
| § | | Continued transition to property ownership by purchasing the developer partner’s interest in New York City 1 facility – the Company’s seventh wholly-owned self-storage property. |
| § | | Completed construction and commenced leasing of nine additional Generation V self-storage development properties in which the Company has an aggregate committed investment of $100.5 million. |
| § | | Increased amount of revolving credit facility from $100 million to $235 million, with an accordion feature permitting expansion up to $400 million and extended term by up to 3 ½ years from July 2020 to December 2023. |
| § | | Issued an aggregate $20.3 million of common stock under the Company’s at-the-market (“ATM”) programs at an average share price of $21.16, a 15.1% premium to the Company’s reported book value per share on September 30, 2018. |
| § | | Commenced a new $75 million ATM program. |
Full-Year 2018 Highlights include:
| § | | Earnings per share and adjusted earnings per share of $2.10 and $2.92, respectively – $0.09 and $0.11, respectively, above the midpoint of guidance ranges provided with the Company’s third quarter 2018 earnings release. |
| § | | Net income attributable to common stockholders of $36.4 million, a 177% increase over $13.1 million reported for full-year 2017; annual adjusted earnings of $50.4 million, a 222% increase over $15.6 million reported for full-year 2017. |
| § | | Originated 14 on-balance sheet development property and bridge investments for an aggregate committed investment of $184.4 million. |
| § | | Completed construction and commenced leasing of 24 additional Generation V self-storage development properties in which the Company has an aggregate committed investment of $236.0 million. |
| § | | Continued execution of business plan to own newly developed self-storage properties in top markets through buyout of developers’ interests in six facilities – the Company wholly-owned seven self-storage facilities as of December 31, 2018. |
“2018 was an outstanding year for the Company,” stated Dean Jernigan, Executive Chairman of Jernigan Capital, Inc. “Our portfolio of state-of-the-art Generation V self-storage properties continues to mature nicely, with 24 development properties commencing operations in 2018; our developers have now delivered and commenced operations at 42 of 69, or about 61%, of the self-storage projects we have financed. Further, we are excited to now have 100% ownership of seven new self-storage facilities located in great markets, furthering our objective to own a substantial majority of the facilities we finance.”
“I am also extremely proud of the team we have assembled at JCAP,” Mr. Jernigan continued. “During the year, we added two key individuals to our senior team in Jonathan Perry and David Corak, two board members in Rebecca Owen and Randy Churchey and saw a seamless succession of senior management as John Good moved to Chief Executive Officer and Jonathan Perry took on the role of President in addition to his existing role of Chief Investment Officer.”
John Good, Chief Executive Officer of the Company, added, “Our fourth quarter results reflect another quarter of excellent execution in all aspects of our business. We posted 146% growth in total revenues, 358% growth in earnings per share and 352% growth in adjusted earnings per share compared to the comparable quarter in 2017. Moreover, our capital activities during the quarter left us with an outstanding balance sheet poised for additional growth as we move into the new year. During the fourth quarter we upsized, extended and lowered pricing on our secured
Fourth Quarter 2018 |
| 3 |
credit facility, while adding two key new banks to our banking syndicate. In addition, we issued $20.3 million of common stock under the company’s ATM programs at a healthy premium to book value and consensus NAV. In December, we launched a new $75 million Common ATM program. Our investment commitments including 2019 commitment guidance are now fully covered through mid-2020 and we have positioned ourselves to maintain conservative leverage levels in the range of 25% to 30% of total assets for the foreseeable future.”
“We expect 2019 will be another tremendous year for JCAP, as the outstanding efforts of our team over the past four years continue to enhance shareholder value and provide investment opportunities in both the development and operating property arenas,” Mr. Good continued. “As the development cycle winds down and transitions to the acquisition cycle, so too does our business model shift from originating ground-up development investments to acquiring the Generation V facilities that we have financed since our IPO. Having already purchased our developers’ interests in seven facilities on balance sheet and in four facilities within our joint venture in January of this year, we expect continued momentum in our strategic shift from lender to owner.”
Financial Highlights
Earnings per share and adjusted earnings per share for the three months ended December 31, 2018 were $0.87 and $1.04, respectively. Earnings per share and adjusted earnings per share for the year ended December 31, 2018 were $2.10 and $2.92, respectively, which are $0.09 and $0.11, respectively, above the midpoint of the Company’s annual guidance range reaffirmed in the Company’s third quarter 2018 earnings release.
Net income attributable to common stockholders for the three months ended December 31, 2018 was $17.2 million, an increase of $14.5 million, or 537%, over the $2.7 million net income attributable to common stockholders for the comparable quarter in 2017. Net income attributable to common stockholders for the year ended December 31, 2018 was $36.4 million, an increase of $23.2 million, or 177%, over the $13.1 million reported for the comparable period in 2017.
Adjusted earnings for the three months ended December 31, 2018 were $20.6 million, a 534% increase over the $3.3 million adjusted earnings for the comparable quarter of 2017. Adjusted earnings for the year ended December 31, 2018 was $50.4 million compared to $15.6 million for the comparable period in 2017, a 222% increase.
Total revenues for the quarter and year ended December 31, 2018 were $9.7 million and $31.2 million, respectively, representing increases of $5.7 million, or 146%, and $19.0 million, or 156%, over total revenues for the quarter and year ended December 31, 2017, respectively. Annual revenue was $1.4 million higher than the top end of the Company’s annual guidance range reaffirmed in the Company’s third quarter 2018 earnings release. The increase in revenues is primarily attributable to the increase in the outstanding principal balances on the Company’s investment portfolio and the increase in rental and other property-related income derived from the six self-storage facilities that the Company owned during the year.
General and administrative expenses, excluding fees to the manager, for the quarter and year ended December 31, 2018 were $1.7 million and $7.3 million, respectively, compared to $1.5 million and $5.9 million for the comparable 2017 periods, respectively. Included in these amounts were stock-based compensation expense (“SBE”) of $0.3 million for the three months ended December 31, 2018 and 2017, and $1.8 million and $1.3 million for the years ended December 31, 2018 and 2017, respectively. The increase in SBE was primarily due to additional restricted stock grants to certain officers and employees of the Company’s external manager during 2017 and 2018. General and administrative expenses also increased as a result of annual compensation increases as well as the addition of a senior executive employee at the Company’s external manager during 2018. Fees to manager for the quarter and year ended December 31, 2018 include $0.7 million of incentive fees.
Net income attributable to common stockholders and adjusted earnings for the quarter and year ended December 31, 2018 also includes increases in the fair value of investments of $18.9 million and $42.9 million, respectively, compared to increases of $1.7 million and $10.8 million for the comparable periods in 2017. This represents a $17.2 million, or 990%, and $32.1 million, or 297%, year-over-year increase from the quarter and year ended December 31, 2017, respectively. This increase is due to the high volume of on-balance sheet development investments we made in 2017 that began increasing in value in 2018.
Subsequent Events
On January 18, 2019, the Company entered into a loan agreement with respect to a term loan with a principal amount of $9.2 million, which is secured by the Company's wholly-owned self-storage facility in Charlotte, North Carolina.
On January 28, 2019, Storage Lenders, LLC (the “SL1 Venture”), the Company’s real estate venture with Heitman in which the Company has a 10% interest, purchased 100% of the Class A membership units of the LLCs that own the Atlanta 1, Jacksonville, Atlanta 2, and Denver development property investments for an aggregate purchase price of $12.1 million. The SL1 Venture now wholly owns the self-storage properties through these LLCs. On February 27, 2019, the SL1 Venture closed on a $36.1 million term loan secured by these four properties.
Fourth Quarter 2018 |
| 4 |
Capital Markets Activities
On December 28, 2018, the Company entered into an amended and restated senior secured revolving credit facility of up to $235 million, subject to borrowing base requirements, with a syndicate of banks led by KeyBank National Association, Raymond James Bank, N.A., and BMO Harris Bank N.A. The credit facility, which has an accordion feature permitting expansion up to $400 million, subject to certain conditions including obtaining additional commitments from lenders, has a three-year term that expires December 28, 2021 and two one-year extension options to extend the maturity of the facility to December 28, 2023. Advances under the credit agreement bear interest at rates between 225 and 325 basis points over 30-day LIBOR.
As of December 31, 2018, the Company had no borrowings under its secured revolving credit facility and currently has $21.0 million outstanding under the Credit Facility and $118.0 million in total availability. The Company expects such availability to increase over the remainder of 2019 as the Company adds existing on-balance sheet operating properties to the borrowing base, and the Company’s on-balance sheet self-storage investments continue to achieve certificates of occupancy and commence lease-up.
As of December 31, 2018, the Company had issued all authorized shares of Series A Preferred Stock for $125.0 million in gross proceeds pursuant to the terms of the Purchase Agreement. During the fourth quarter, the Company issued $20.3 million of common stock under the Company’s ATM programs at an average share price of $21.16. On December 7, 2018, the Company entered into an Equity Distribution Agreement for a new $75.0 million Common ATM Program, $74.0 million of which was available at December 31, 2018.
Dividends
On October 31, 2018, the Company declared cash and stock dividends on its Series A Preferred Stock. The cash dividend of $2.2 million was paid on January 15, 2019 to holders of record on January 1, 2019. A stock dividend of 2,125 shares of additional Series A Preferred Stock was issued on January 15, 2019 to holders of record on January 1, 2019 for an aggregate value of $2.1 million pursuant to the terms of the Stock Purchase Agreement.
On October 31, 2018, the Company declared a cash dividend on its Series B Preferred Stock. The cash dividend of $0.7 million was paid on January 15, 2019 to holders of record on January 2, 2019.
Additionally, on October 31, 2018, the Company declared a dividend of $0.35 per common share. The dividend was paid on January 15, 2019 to common stockholders of record on January 2, 2019.
Fourth Quarter 2018 |
| 5 |
First Quarter and Full-Year 2019 Guidance
The following table reflects earnings per share and adjusted earnings per share guidance ranges for the three months ending March 31, 2019 and for the full-year 2019. Such guidance is based on management's current expectations of Company investment and acquisition activity (including fair value appreciation, the expected timing of construction progress and receipts of certificates of occupancy, and the assumptions regarding the timing of acquisitions of developer interests), the operational and new supply dynamics of the self-storage markets in which the Company has invested, and overall economic conditions. Adjusted earnings is a performance measure that is not specifically defined by accounting principles generally accepted in the United States (“GAAP”) and is defined as net income attributable to common stockholders (computed in accordance with GAAP) plus stock dividends to preferred stockholders, stock-based compensation expense, and depreciation and amortization on real estate assets. For more information about our calculation of adjusted earnings, see “Non-GAAP Financial Measures” below.
| | | | | | | | | | | | |
| | Dollars in thousands, |
| | except share and per share data |
| | Three months ending | | Year ending |
| | March 31, 2019 | | December 31, 2019 |
| | Low | | High | | Low | | High |
Interest income from investments | | $ | 7,850 | | $ | 7,950 | | $ | 36,000 | | $ | 37,000 |
Rental revenue from real estate owned | | | 1,350 | | | 1,400 | | | 7,000 | | | 7,300 |
Other income | | | 35 | | | 40 | | | 140 | | | 160 |
Total revenues | | $ | 9,235 | | $ | 9,390 | | $ | 43,140 | | $ | 44,460 |
G&A expenses (1) | | | (4,015) | | | (3,875) | | | (17,550) | | | (16,250) |
Property operating expenses (excl. depreciation and amortization) | | | (800) | | | (750) | | | (3,500) | | | (3,300) |
Depreciation and amortization on real estate assets | | | (1,125) | | | (1,025) | | | (4,850) | | | (4,350) |
Interest expense | | | (1,350) | | | (1,250) | | | (9,500) | | | (9,000) |
JV income | | | 135 | | | 155 | | | 450 | | | 500 |
Other interest income | | | 20 | | | 30 | | | 80 | | | 120 |
Net unrealized gain on investments (2) | | | 5,000 | | | 7,000 | | | 30,000 | | | 40,000 |
Net income | | | 7,100 | | | 9,675 | | | 38,270 | | | 52,180 |
Net income attributable to preferred stockholders (3) | | | (5,060) | | | (5,040) | | | (20,300) | | | (20,150) |
Net income attributable to common stockholders | | | 2,040 | | | 4,635 | | | 17,970 | | | 32,030 |
Add: stock dividends | | | 2,125 | | | 2,125 | | | 8,500 | | | 8,500 |
Add: stock-based compensation | | | 345 | | | 325 | | | 1,800 | | | 1,750 |
Add: depreciation and amortization on real estate assets (4) | | | 1,185 | | | 1,075 | | | 5,150 | | | 4,630 |
Adjusted earnings | | $ | 5,695 | | $ | 8,160 | | $ | 33,420 | | $ | 46,910 |
Earnings per share – diluted | | $ | 0.10 | | $ | 0.22 | | $ | 0.82 | | $ | 1.46 |
Adjusted earnings per share - diluted | | $ | 0.28 | | $ | 0.39 | | $ | 1.52 | | $ | 2.13 |
Average shares outstanding - diluted | | | 20,700,000 | | | 20,700,000 | | | 22,000,000 | | | 22,000,000 |
| 1) | | Includes $2.0 million (low and high) and $9.4 million (low) / $8.4 million (high) of fees to Manager for the three months ending March 31, 2019 and for the year ending December 31, 2019, respectively. |
| 2) | | Excludes $0.05 million (low and high) and $0.2 million (low and high) of unrealized appreciation in fair value of investments from the real estate venture which is included in JV income for the three months ending March 31, 2019 and for the year ending December 31, 2019, respectively. |
| 3) | | Represents both cash dividends and stock dividends (which stock dividends will be paid out in either shares of the Company’s common stock or additional shares of Series A Preferred Stock, at the option of the Series A stockholders) estimated with respect to outstanding shares of Series A Preferred Stock, as well as cash dividends estimated with respect to outstanding shares of Series B Preferred Stock. |
| 4) | | Includes $0.06 million (low) / $0.05 million (high) and $0.3 million (low and high) of depreciation and amortization on the real estate assets wholly-owned by the real estate venture, which is included in JV income for the three months ending March 31, 2019 and for the year ending December 31, 2019, respectively. |
The guidance above is based on the following key assumptions regarding the Company’s business activities in 2019:
| · | | Projected closings on $85 million to $115 million of new self-storage investments for the full-year 2019, including acquisitions of developer interests (on-balance sheet and JCAP’s proportionate share in the SL1 Venture), new development property investments, new bridge investments and joint venture investments; |
| · | | Fundings of approximately $200 million to $230 million on the Company’s closed and projected investment commitments during the year ending December 31, 2019, including cash payable for the acquisitions of developer interests; and |
| · | | Utilization of the Company’s credit facility over the course of the year with expected borrowings at year-end of between $120.0 million and $160.0 million. |
Fourth Quarter 2018 |
| 6 |
Of the estimated $30.0 million to $40.0 million of fair value appreciation in 2019, the Company expects $5.0 million to $7.0 million to be recognized during the first quarter, $7.5 million to $10.0 million to be recognized in the second quarter, $7.5 million to $10.0 million to be recognized in the third quarter, and $10.0 million to $13.0 million to be recognized in the fourth quarter. The Company’s 2019 fair value guidance reflects updated estimates of the timing of construction completion of the self-storage facilities underlying certain of our development investments, as well as the timing of stabilization of facilities in which we have invested. Timing of fair value appreciation is heavily dependent upon construction progress and the timing of construction completion, both of which are subject to factors outside the control of the Company’s development partners. Moreover, when the Company acquires the developer’s interest in a self-storage project that the Company has financed, the Company no longer accounts for such investment on the fair value method, so acquisitions of developer interests have a potential material effect on future fair value recognized in our financial statements. As such, the amount and exact timing of fair value recognition is subject to change.
Fourth Quarter 2018 |
| 7 |
Jernigan Capital, Inc.
Financial Highlights- Trailing Five Quarters
(unaudited, in thousands, except share and per share data)
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | Three months ended |
| | December 31, | | September 30, | | June 30, | | March 31, | | December 31, |
| | 2018 | | 2018 | | 2018 | | 2018 | | 2017 |
Operating Data: | | | | | | | | | | | | | | | |
Interest income, rental-related income and other revenues | | $ | 9,666 | | $ | 9,091 | | $ | 7,241 | | $ | 5,216 | | $ | 3,930 |
JV income | | | 58 | | | 440 | | | 435 | | | 550 | | | 516 |
Total revenues and JV income | | | 9,724 | | | 9,531 | | | 7,676 | | | 5,766 | | | 4,446 |
General & administrative expenses | | | (4,375) | | | (3,599) | | | (3,616) | | | (3,122) | | | (2,597) |
Property operating expenses of real estate owned | | | (508) | | | (473) | | | (420) | | | (311) | | | (83) |
Depreciation and amortization of real estate owned | | | (982) | | | (854) | | | (887) | | | (702) | | | (238) |
Interest expense | | | (634) | | | (467) | | | (638) | | | (416) | | | (296) |
Other expenses | | | - | | | - | | | - | | | (290) | | | - |
Subtotal | | | 3,225 | | | 4,138 | | | 2,115 | | | 925 | | | 1,232 |
Realized gain on investments | | | - | | | 619 | | | - | | | - | | | - |
Net unrealized gain on investments | | | 18,942 | | | 11,060 | | | 8,623 | | | 4,320 | | | 1,738 |
Other interest income | | | 84 | | | 147 | | | 59 | | | 109 | | | 155 |
Net income | | | 22,251 | | | 15,964 | | | 10,797 | | | 5,354 | | | 3,125 |
Net income attributable to preferred stockholders | | | (5,049) | | | (4,790) | | | (4,580) | | | (3,595) | | | (423) |
Net income attributable to common stockholders | | $ | 17,202 | | $ | 11,174 | | $ | 6,217 | | $ | 1,759 | | $ | 2,702 |
Plus: stock dividends to preferred stockholders | | | 2,125 | | | 2,125 | | | 2,125 | | | 2,125 | | | 44 |
Plus: stock-based compensation | | | 321 | | | 385 | | | 777 | | | 345 | | | 272 |
Plus: depreciation and amortization on real estate assets | | | 982 | | | 854 | | | 887 | | | 702 | | | 238 |
Plus: other expenses | | | - | | | - | | | - | | | 290 | | | - |
Adjusted Earnings | | $ | 20,630 | | $ | 14,538 | | $ | 10,006 | | $ | 5,221 | | $ | 3,256 |
| | | | | | | | | | | | | | | |
Basic earnings per share attributable to common stockholders | | $ | 0.87 | | $ | 0.58 | | $ | 0.40 | | $ | 0.12 | | $ | 0.19 |
Diluted earnings per share attributable to common stockholders | | $ | 0.87 | | $ | 0.57 | | $ | 0.40 | | $ | 0.12 | | $ | 0.19 |
| | | | | | | | | | | | | | | |
Adjusted Earnings per share attributable to common stockholders - diluted | | $ | 1.04 | | $ | 0.75 | | $ | 0.64 | | $ | 0.36 | | $ | 0.23 |
| | | | | | | | | | | | | | | |
Dividends declared per share of common stock | | $ | 0.35 | | $ | 0.35 | | $ | 0.35 | | $ | 0.35 | | $ | 0.35 |
| | | | | | | | | | | | | | | |
Weighted-average shares of common stock outstanding: | | | | | | | | | | | | | | | |
Basic | | | 19,655,942 | | | 19,184,172 | | | 15,274,459 | | | 14,247,174 | | | 14,108,415 |
Diluted | | | 19,816,194 | | | 19,459,751 | | | 15,564,317 | | | 14,555,337 | | | 14,295,639 |
Shares of common stock outstanding: | | | 20,430,218 | | | 19,364,339 | | | 19,254,141 | | | 14,447,043 | | | 14,429,055 |
| | | | | | | | | | | | | | | |
Balance Sheet Data: | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 8,715 | | $ | 42,624 | | $ | 43,331 | | $ | 15,238 | | $ | 46,977 |
Self-Storage Investment Portfolio: | | | | | | | | | | | | | | | |
Development property investments at fair value | | | 373,564 | | | 335,509 | | | 302,245 | | | 239,754 | | | 228,233 |
Bridge investments at fair value | | | 84,383 | | | 81,862 | | | 79,581 | | | 77,435 | | | - |
Operating property loans at fair value | | | - | | | 2,440 | | | 5,862 | | | 5,885 | | | 5,938 |
Self-storage real estate owned | | | 100,099 | | | 74,444 | | | 61,896 | | | 61,633 | | | 15,827 |
Accumulated depreciation on self-storage real estate owned | | | (3,897) | | | (2,915) | | | (2,061) | | | (1,174) | | | (472) |
Self-storage real estate owned, net | | | 96,202 | | | 71,529 | | | 59,835 | | | 60,459 | | | 15,355 |
Investment in and advances to self-storage real estate venture | | | 14,155 | | | 14,401 | | | 14,846 | | | 14,759 | | | 13,856 |
Total assets | | | 590,408 | | | 556,228 | | | 509,860 | | | 417,252 | | | 314,634 |
Gross assets | | | 594,305 | | | 559,143 | | | 511,921 | | | 418,426 | | | 315,106 |
| | | | | | | | | | | | | | | |
Senior loan participation | | | - | | | - | | | - | | | 732 | | | 718 |
Secured revolving credit facility | | | - | | | - | | | - | | | 30,000 | | | - |
Term loans, net of unamortized costs | | | 24,609 | | | 24,578 | | | - | | | - | | | - |
Total liabilities | | | 42,544 | | | 40,689 | | | 16,122 | | | 43,944 | | | 8,814 |
| | | | | | | | | | | | | | | |
Total equity | | | 547,864 | | | 515,539 | | | 493,738 | | | 373,308 | | | 305,820 |
Common book value / common shares outstanding | | $ | 19.01 | | $ | 18.38 | | $ | 18.13 | | $ | 18.35 | | $ | 18.58 |
Fourth Quarter 2018 |
| 8 |
Jernigan Capital, Inc.
Consolidated Balance Sheets-Trailing Five Quarters
(unaudited, in thousands)
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | As of |
| | December 31, | | September 30, | | June 30, | | March 31, | | December 31, |
| | 2018 | | 2018 | | 2018 | | 2018 | | 2017 |
Assets: | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 8,715 | | $ | 42,624 | | $ | 43,331 | | $ | 15,238 | | $ | 46,977 |
Self-Storage Investment Portfolio: | | | | | | | | | | | | | | | |
Development property investments at fair value | | | 373,564 | | | 335,509 | | | 302,245 | | | 239,754 | | | 228,233 |
Bridge investments at fair value | | | 84,383 | | | 81,862 | | | 79,581 | | | 77,435 | | | - |
Operating property loans at fair value | | | - | | | 2,440 | | | 5,862 | | | 5,885 | | | 5,938 |
Self-storage real estate owned, net | | | 96,202 | | | 71,529 | | | 59,835 | | | 60,459 | | | 15,355 |
Investment in and advances to self-storage real estate venture | | | 14,155 | | | 14,401 | | | 14,846 | | | 14,759 | | | 13,856 |
Other loans, at cost | | | 4,835 | | | 4,818 | | | 1,361 | | | 1,103 | | | 1,313 |
Deferred financing costs | | | 4,619 | | | 1,503 | | | 1,644 | | | 1,565 | | | 2,004 |
Prepaid expenses and other assets | | | 3,702 | | | 1,327 | | | 975 | | | 884 | | | 776 |
Fixed assets, net | | | 233 | | | 215 | | | 180 | | | 170 | | | 182 |
Total assets | | $ | 590,408 | | $ | 556,228 | | $ | 509,860 | | $ | 417,252 | | $ | 314,634 |
| | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | |
Senior loan participation | | $ | - | | $ | - | | $ | - | | $ | 732 | | $ | 718 |
Secured revolving credit facility | | | - | | | - | | | - | | | 30,000 | | | - |
Term loans, net of unamortized costs | | | 24,609 | | | 24,578 | | | - | | | - | | | - |
Due to Manager | | | 3,334 | | | 2,309 | | | 1,887 | | | 1,405 | | | 1,484 |
Accounts payable, accrued expenses and other liabilities | | | 2,402 | | | 2,235 | | | 2,916 | | | 3,155 | | | 1,138 |
Dividends payable | | | 12,199 | | | 11,567 | | | 11,319 | | | 8,652 | | | 5,474 |
Total liabilities | | $ | 42,544 | | $ | 40,689 | | $ | 16,122 | | $ | 43,944 | | $ | 8,814 |
| | | | | | | | | | | | | | | |
Equity: | | | | | | | | | | | | | | | |
Series A Cumulative preferred stock | | $ | 122,137 | | $ | 122,137 | | $ | 107,168 | | $ | 72,181 | | $ | 37,764 |
Series B Cumulative preferred stock | | | 37,401 | | | 37,425 | | | 37,463 | | | 35,988 | | | - |
Common stock | | | 204 | | | 193 | | | 192 | | | 144 | | | 144 |
Additional paid-in capital | | | 386,394 | | | 364,108 | | | 361,636 | | | 277,194 | | | 276,814 |
Retained earnings (Accumulated deficit) | | | 1,728 | | | (8,324) | | | (12,721) | | | (12,199) | | | (8,902) |
Total equity | | | 547,864 | | | 515,539 | | | 493,738 | | | 373,308 | | | 305,820 |
Total liabilities and equity | | $ | 590,408 | | $ | 556,228 | | $ | 509,860 | | $ | 417,252 | | $ | 314,634 |
Fourth Quarter 2018 |
| 9 |
Jernigan Capital, Inc.
Consolidated Statements of Operations
(unaudited, in thousands, except per share data)
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | Three months ended | | Year ended |
| | December 31, | | December 31, |
| | 2018 | | 2017 | | 2018 | | 2017 |
Revenues: | | | | | | | | | | | | |
Interest income from investments | | $ | 8,525 | | $ | 3,698 | | $ | 27,576 | | $ | 11,457 |
Rental and other property-related income from real estate owned | | | 1,101 | | | 202 | | | 3,499 | | | 530 |
Other revenues | | | 40 | | | 30 | | | 139 | | | 204 |
Total revenues | | | 9,666 | | | 3,930 | | | 31,214 | | | 12,191 |
| | | | | | | | | | | | |
Costs and expenses: | | | | | | | | | | | | |
General and administrative expenses | | | 1,691 | | | 1,517 | | | 7,270 | | | 5,852 |
Fees to Manager | | | 2,684 | | | 1,080 | | | 7,442 | | | 3,453 |
Property operating expenses of real estate owned | | | 508 | | | 83 | | | 1,712 | | | 271 |
Depreciation and amortization of real estate owned | | | 982 | | | 238 | | | 3,425 | | | 472 |
Other expenses | | | - | | | - | | | 290 | | | - |
Total costs and expenses | | | 5,865 | | | 2,918 | | | 20,139 | | | 10,048 |
| | | | | | | | | | | | |
Operating income | | | 3,801 | | | 1,012 | | | 11,075 | | | 2,143 |
| | | | | | | | | | | | |
Other income (expense): | | | | | | | | | | | | |
Equity in earnings from unconsolidated real estate venture | | | 58 | | | 516 | | | 1,483 | | | 2,263 |
Realized gain on investments | | | - | | | - | | | 619 | | | - |
Net unrealized gain on investments | | | 18,942 | | | 1,738 | | | 42,945 | | | 10,804 |
Interest expense | | | (634) | | | (296) | | | (2,155) | | | (1,053) |
Loss on modification of debt | | | - | | | - | | | - | | | (232) |
Other interest income | | | 84 | | | 155 | | | 399 | | | 634 |
Total other income | | | 18,450 | | | 2,113 | | | 43,291 | | | 12,416 |
Net income | | | 22,251 | | | 3,125 | | | 54,366 | | | 14,559 |
Net income attributable to preferred stockholders | | | (5,049) | | | (423) | | | (18,014) | | | (1,456) |
Net income attributable to common stockholders | | $ | 17,202 | | $ | 2,702 | | $ | 36,352 | | $ | 13,103 |
| | | | | | | | | | | | |
Basic earnings per share attributable to common stockholders | | $ | 0.87 | | $ | 0.19 | | $ | 2.10 | | $ | 1.10 |
Diluted earnings per share attributable to common stockholders | | $ | 0.87 | | $ | 0.19 | | $ | 2.10 | | $ | 1.10 |
| | | | | | | | | | | | |
Dividends declared per share of common stock | | $ | 0.35 | | $ | 0.35 | | $ | 1.40 | | $ | 1.40 |
Fourth Quarter 2018 |
| 10 |
Jernigan Capital, Inc.
Calculation of Adjusted Earnings and Reconciliation to Net Income Attributable to Common Stockholders
(unaudited, in thousands, except share and per share data)
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | Three months ended |
| | December 31, | | September 30, | | June 30, | | March 31, | | December 31, |
| | 2018 | | 2018 | | 2018 | | 2018 | | 2017 |
Net income attributable to common stockholders | | $ | 17,202 | | $ | 11,174 | | $ | 6,217 | | $ | 1,759 | | $ | 2,702 |
Plus: stock dividends to preferred stockholders | | | 2,125 | | | 2,125 | | | 2,125 | | | 2,125 | | | 44 |
Plus: stock-based compensation | | | 321 | | | 385 | | | 777 | | | 345 | | | 272 |
Plus: depreciation and amortization on real estate assets | | | 982 | | | 854 | | | 887 | | | 702 | | | 238 |
Plus: other expenses | | | - | | | - | | | - | | | 290 | | | - |
Adjusted Earnings | | $ | 20,630 | | $ | 14,538 | | $ | 10,006 | | $ | 5,221 | | $ | 3,256 |
| | | | | | | | | | | | | | | |
Adjusted Earnings per share attributable to common stockholders - diluted | | $ | 1.04 | | $ | 0.75 | | $ | 0.64 | | $ | 0.36 | | $ | 0.23 |
| | | | | | | | | | | | | | | |
Weighted average shares of common stock outstanding - diluted | | | 19,816,194 | | | 19,459,751 | | | 15,564,317 | | | 14,555,337 | | | 14,295,639 |
| | | | | | |
| | | | | | |
| | Year ended December 31, |
| | 2018 | | 2017 |
Net income attributable to common stockholders | | $ | 36,352 | | $ | 13,103 |
Plus: stock dividends to preferred stockholders | | | 8,500 | | | 547 |
Plus: stock-based compensation | | | 1,828 | | | 1,295 |
Plus: depreciation and amortization on real estate assets | | | 3,425 | | | 472 |
Plus: loss on modification of debt | | | - | | | 232 |
Plus: other expenses | | | 290 | | | - |
Adjusted Earnings | | $ | 50,395 | | $ | 15,649 |
| | | | | | |
Adjusted Earnings per share attributable to common stockholders - diluted | | $ | 2.92 | | $ | 1.31 |
| | | | | | |
Weighted average shares of common stock outstanding - diluted | | | 17,284,160 | | | 11,908,512 |
Fourth Quarter 2018 |
| 11 |
Jernigan Capital, Inc.
Schedule of Owned Properties
As of December 31, 2018
(unaudited, dollars in thousands)
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Location | | | | | | | | | | | | | | | | |
(MSA) | | Date | | Date | | JCAP Capital | | Size | | Months | | % Physical |
Address | | Opened | | Acquired | | Investment (1) | | (NRSF) (2) | | Open (3) | | Occupancy (3) |
Orlando 1/2 | | | | | | | | | | | | | | | | |
11920 W Colonial Dr. | | 5/1/2016 | | 8/9/2017 | | $ | 12,047 | | | 93,965 | | 34 | | | 86.1 | % |
Atlanta 2 | | | | | | | | | | | | | | | | |
340 Franklin Gateway SE | | 5/24/2016 | | 2/2/2018 | | | 8,766 | | | 66,187 | | 33 | | | 79.9 | % |
Atlanta 1 | | | | | | | | | | | | | | | | |
5110 McGinnis Ferry Rd | | 5/25/2016 | | 2/2/2018 | | | 10,467 | | | 71,718 | | 33 | | | 86.0 | % |
Jacksonville 1 | | | | | | | | | | | | | | | | |
1939 East West Pkwy | | 8/12/2016 | | 1/10/2018 | | | 8,686 | | | 59,848 | | 30 | | | 88.8 | % |
Pittsburgh | | | | | | | | | | | | | | | | |
6400 Hamilton Ave | | 5/11/2017 | | 2/20/2018 | | | 7,619 | | | 47,794 | | 21 | | | 32.8 | % |
Charlotte 1 | | | | | | | | | | | | | | | | |
9323 Wright Hill Rd | | 8/18/2016 | | 8/31/2018 | | | 10,525 | | | 85,350 | | 30 | | | 57.6 | % |
New York City 1 | | | | | | | | | | | | | | | | |
1775 5th Ave | | 9/29/2017 | | 12/21/2018 | | | 19,938 | | | 105,347 | | 17 | | | 58.4 | % |
Total Owned Properties | | | | $ | 78,048 | | | | | | | | | |
| (1) | | JCAP Capital Investment represents the sum of the funded principal balance of the loan (net of unamortized origination fees), cash consideration (inclusive of transaction costs), assumed liabilities, net property working capital acquired, all as of the date of acquisition, and any capital costs spent after the date of acquisition. The stabilized yield on our capital investment ranges from 7.5% to 8.5%. |
| (2) | | The net rentable square feet (“NRSF”) includes only climate controlled and non-climate controlled storage space. It does not include retail space, office space, non-covered RV space or parking spaces. |
| (3) | | As of February 24, 2019. |
Fourth Quarter 2018 |
| 12 |
Jernigan Capital, Inc.
Schedule of Completed Projects
As of December 31, 2018
(unaudited, dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Location | | | | | | | | Remaining | | | | | | | | | | | | | | | |
| | (MSA) | | | | | Funded | | Unfunded | | | | | | Size | | Date | | Months | | % Physical |
Closing Date | | Address | | Commitment | | Investment | | Commitment (1) | | Fair Value | | | (NRSF) (2) | | Opened | | Open (3) | | Occupancy (3) |
7/2/2015 | | Milwaukee | | | | | | | | | | | | | | | | | | | | | | | | |
| | 420 W St Paul Ave | | $ | 7,650 | | $ | 7,648 | | $ | 2 | | $ | 9,057 | | | | 81,755 | | 10/9/2016 | | 29 | | | 63.2 | % |
7/31/2015 | | New Haven | | | | | | | | | | | | | | | | | | | | | | | | |
| | 453 Washington Ave | | | 6,930 | | | 6,827 | | | 103 | | | 8,350 | | | | 64,225 | | 12/16/2016 | | 26 | | | 67.0 | % |
10/27/2015 | | Austin | | | | | | | | | | | | | | | | | | | | | | | | |
| | 251 North A W Grimes Blvd | | | 8,658 | | | 7,817 | | | 841 | | | 7,763 | | | | 77,234 | | 3/16/2017 | | 23 | | | 70.1 | % |
8/14/2015 | | Raleigh | | | | | | | | | | | | | | | | | | | | | | | | |
| | 1515 Sunrise Ave | | | 8,792 | | | 8,498 | | | 294 | | | 8,002 | | | | 60,171 | | 3/8/2018 | | 12 | | | 33.5 | % |
11/17/2016 | | Jacksonville 2 | | | | | | | | | | | | | | | | | | | | | | | | |
| | 45 Jefferson Rd | | | 7,530 | | | 7,157 | | | 373 | | | 9,122 | | | | 70,255 | | 3/27/2018 | | 11 | | | 36.6 | % |
1/31/2017 | | Atlanta 4 | | | | | | | | | | | | | | | | | | | | | | | | |
| | 4676 S Atlanta Rd | | | 13,678 | | | 12,957 | | | 721 | | | 16,031 | | | | 105,288 | | 7/12/2018 | | 7 | | | 13.2 | % |
2/24/2017 | | Orlando 3 | | | | | | | | | | | | | | | | | | | | | | | | |
| | 12709 E Colonial Dr | | | 8,056 | | | 7,229 | | | 827 | | | 8,592 | | | | 69,645 | | 7/26/2018 | | 7 | | | 18.6 | % |
4/20/2017 | | Denver 2 | | | | | | | | | | | | | | | | | | | | | | | | |
| | 3110 S Wadsworth Blvd | | | 11,164 | | | 10,235 | | | 929 | | | 12,403 | | | | 74,521 | | 7/31/2018 | | 7 | | | 16.1 | % |
6/29/2017 | | Boston 1 (4) | | | | | | | | | | | | | | | | | | | | | | | | |
| | 329 Boston Post Rd E | | | - | | | - | | | - | | | 2,614 | | | | 90,453 | | 8/8/2018 | | 7 | | | 12.4 | % |
4/14/2017 | | Louisville 1 | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2801 N Hurstbourne Pkwy | | | 8,523 | | | 6,979 | | | 1,544 | | | 8,540 | | | | 65,776 | | 8/15/2018 | | 6 | | | 23.2 | % |
9/20/2016 | | Charlotte 2 | | | | | | | | | | | | | | | | | | | | | | | | |
| | 1010 E 10th St | | | 12,888 | | | 11,445 | | | 1,443 | | | 12,793 | | | | 76,985 | | 8/30/2018 | | 6 | | | 15.1 | % |
9/28/2017 | | Louisville 2 | | | | | | | | | | | | | | | | | | | | | | | | |
| | 3415 Bardstown Rd | | | 9,940 | | | 8,691 | | | 1,249 | | | 10,652 | | | | 76,553 | | 8/31/2018 | | 6 | | | 12.5 | % |
6/12/2017 | | Tampa 4 | | | | | | | | | | | | | | | | | | | | | | | | |
| | 3201 32nd Ave S | | | 10,266 | | | 8,846 | | | 1,420 | | | 11,419 | | | | 73,500 | | 10/9/2018 | | 5 | | | 11.2 | % |
5/2/2017 | | Atlanta 6 | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2033 Monroe Dr | | | 12,543 | | | 10,589 | | | 1,954 | | | 12,774 | | | | 81,170 | | 10/15/2018 | | 4 | | | 18.5 | % |
7/27/2017 | | Jacksonville 3 | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2004 Edison Ave | | | 8,096 | | | 6,836 | | | 1,260 | | | 8,251 | | | | 68,400 | | 11/6/2018 | | 4 | | | 12.2 | % |
6/19/2017 | | Baltimore 1 | | | | | | | | | | | | | | | | | | | | | | | | |
| | 1835 Washington Blvd | | | 10,775 | | | 9,177 | | | 1,598 | | | 10,805 | | | | 84,700 | | 11/20/2018 | | 3 | | | 4.7 | % |
5/19/2017 | | Tampa 3 | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2460 S Falkenburg Rd | | | 9,224 | | | 7,154 | | | 2,070 | | | 8,391 | | | | 70,888 | | 11/29/2018 | | 3 | | | 8.6 | % |
6/28/2017 | | Knoxville | | | | | | | | | | | | | | | | | | | | | | | | |
| | 130 Jack Dance St | | | 9,115 | | | 7,717 | | | 1,398 | | | 8,652 | | | | 72,281 | | 11/30/2018 | | 3 | | | 14.9 | % |
2/24/2017 | | New Orleans | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2705 Severn Ave | | | 12,549 | | | 10,587 | | | 1,962 | | | 12,221 | | | | 86,765 | | 12/21/2018 | | 2 | | | 5.1 | % |
6/30/2017 | | New York City 2 | | | | | | | | | | | | | | | | | | | | | | | | |
| | 465 W 150th St | | | 26,482 | | | 24,760 | | | 1,722 | | | 28,102 | | | | 40,593 | | 12/28/2018 | | 2 | | | 1.6 | % |
Total Completed Development Loans | | $ | 202,859 | | $ | 181,149 | | $ | 21,710 | | $ | 214,534 | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
3/2/2018 | | Miami 6 | | | | | | | | | | | | | | | | | | | | | | | | |
| | 590 NW 137th Ave | | $ | 13,370 | | $ | 13,370 | | $ | - | | $ | 17,372 | | | | 76,665 | | 8/12/2016 | | 30 | | | 78.8 | % |
3/2/2018 | | Miami 4 | | | | | | | | | | | | | | | | | | | | | | | | |
| | 1103 SW 3rd Ave | | | 20,201 | | | 20,201 | | | - | | | 22,823 | | | | 74,685 | | 10/9/2016 | | 29 | | | 81.4 | % |
3/2/2018 | | Miami 8 | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2434 SW 28th Lane | | | 13,553 | | | 13,472 | | | 81 | | | 13,785 | | | | 51,923 | | 12/12/2016 | | 26 | | | 83.6 | % |
3/2/2018 | | Miami 7 | | | | | | | | | | | | | | | | | | | | | | | | |
| | 18460 Pines Blvd | | | 18,462 | | | 17,581 | | | 881 | | | 15,971 | | | | 86,640 | | 3/26/2018 | | 11 | | | 36.0 | % |
3/2/2018 | | Miami 5 | | | | | | | | | | | | | | | | | | | | | | | | |
| | 4001 NW 77th Ave | | | 17,738 | | | 16,883 | | | 855 | | | 14,432 | | | | 77,075 | | 8/13/2018 | | 6 | | | 19.2 | % |
Total Completed Bridge Investments | | $ | 83,324 | | $ | 81,507 | | $ | 1,817 | | $ | 84,383 | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Completed Projects | | $ | 286,183 | | | | | | | | | | | | | | | | | | | | | |
| (1) | | Commitment is fixed during underwriting at an amount deemed sufficient to cover interest carry and excess operating expenses over rental revenue during lease-up and deferred developer’s fees (if any) payable upon stabilization. Remaining unfunded commitment on completed projects is expected to be utilized primarily for such purposes. To the extent not needed for such purposes, such commitment will not be advanced. |
| (2) | | The NRSF includes only climate controlled and non-climate controlled storage space. It does not include retail space, office space, non-covered RV space or parking spaces. |
| (3) | | As of February 24, 2019. |
| (4) | | This loan was repaid in full through a refinancing negotiated by our partner. The investment represents our 49.9% Profits Interest which was retained during the transaction. |
Fourth Quarter 2018 |
| 13 |
Schedule of Projects in Progress
As of December 31, 2018
(unaudited, dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | Location | | | | | | | | Remaining | | | | | | | | | | Estimated |
| | (MSA) | | | | | Funded | | Unfunded | | | | | Size | | Construction | | C/O |
Closing Date | | Address | | Commitment | | Investment | | Commitment | | Fair Value | | (NRSF) (1) | | Start Date | | Quarter (2) |
1/18/2017 | | Atlanta 3 | | | | | | | | | | | | | | | | | | | |
| | 1484 Northside Dr NW | | $ | 14,115 | | $ | 8,711 | | $ | 5,404 | | $ | 9,337 | | | 92,935 | | Q4 2017 | | Q2 2019 |
2/27/2017 | | Atlanta 5 | | | | | | | | | | | | | | | | | | | |
| | 56 Peachtree Valley Rd NE | | | 17,492 | | | 14,095 | | | 3,397 | | | 15,371 | | | 84,988 | | Q3 2017 | | Q1 2019 |
3/1/2017 | | Fort Lauderdale | | | | | | | | | | | | | | | | | | | |
| | 5601 NE 14th Ave | | | 9,952 | | | 7,604 | | | 2,348 | | | 10,475 | | | 79,279 | | Q1 2018 | | Q1 2019 |
3/1/2017 | | Houston | | | | | | | | | | | | | | | | | | | |
| | 1050 Brittmoore Rd | | | 14,825 | | | 10,936 | | | 3,889 | | | 13,285 | | | 133,035 | | Q4 2017 | | Q2 2019 |
4/20/2017 | | Denver 1 | | | | | | | | | | | | | | | | | | | |
| | 6206 W Alameda Ave | | | 9,806 | | | 6,884 | | | 2,922 | | | 7,706 | | | 60,171 | | Q1 2018 | | Q1 2019 |
5/2/2017 | | Tampa 2 | | | | | | | | | | | | | | | | | | | |
| | 9125 Ulmerton Rd | | | 8,091 | | | 5,493 | | | 2,598 | | | 6,020 | | | 71,400 | | Q1 2018 | | Q2 2019 |
8/30/2017 | | Orlando 4 | | | | | | | | | | | | | | | | | | | |
| | 9001 Eastmar Commons | | | 9,037 | | | 6,769 | | | 2,268 | | | 8,264 | | | 77,125 | | Q1 2018 | | Q1 2019 (3) |
9/14/2017 | | Los Angeles 1 | | | | | | | | | | | | | | | | | | | |
| | 959 W Hyde Park Blvd | | | 28,750 | | | 8,692 | | | 20,058 | | | 8,418 | | | 120,038 | | Q2 2019 | | Q3 2020 |
9/14/2017 | | Miami 1 | | | | | | | | | | | | | | | | | | | |
| | 4250 SW 8th St | | | 14,657 | | | 6,882 | | | 7,775 | | | 6,562 | | | 69,175 | | Q2 2018 | | Q4 2019 |
10/12/2017 | | Miami 2 | | | | | | | | | | | | | | | | | | | |
| | 880 W Prospect Rd | | | 9,459 | | | 1,335 | | | 8,124 | | | 1,082 | | | 58,000 | | Q1 2019 | | Q3 2020 |
10/30/2017 | | New York City 3 | | | | | | | | | | | | | | | | | | | |
| | 5203 Kennedy Blvd | | | 14,701 | | | 4,835 | | | 9,866 | | | 4,383 | | | 68,660 | | Q4 2017 | | Q3 2020 |
11/16/2017 | | Miami 3 | | | | | | | | | | | | | | | | | | | |
| | 120-132 NW 27th Ave | | | 20,168 | | | 4,096 | | | 16,072 | | | 3,542 | | | 96,295 | | Q4 2018 | | Q1 2020 |
11/21/2017 | | Minneapolis 1 | | | | | | | | | | | | | | | | | | | |
| | 2109 University Ave W | | | 12,674 | | | 3,214 | | | 9,460 | | | 3,070 | | | 88,838 | | Q2 2018 | | Q4 2019 |
12/1/2017 | | Boston 2 | | | | | | | | | | | | | | | | | | | |
| | 10 Hampshire Rd | | | 8,771 | | | 3,978 | | | 4,793 | | | 4,246 | | | 76,710 | | Q4 2017 | | Q2 2019 |
12/15/2017 | | New York City 4 | | | | | | | | | | | | | | | | | | | |
| | 6 Commerce Center Dr | | | 10,591 | | | 1,777 | | | 8,814 | | | 1,631 | | | 78,425 | | Q2 2018 | | Q1 2020 |
12/27/2017 | | Boston 3 | | | | | | | | | | | | | | | | | | | |
| | 19 Coolidge Hill Rd | | | 10,174 | | | 2,563 | | | 7,611 | | | 2,402 | | | 62,700 | | Q2 2019 | | Q2 2020 |
12/28/2017 | | New York City 5 | | | | | | | | | | | | | | | | | | | |
| | 375 River St | | | 16,073 | | | 6,523 | | | 9,550 | | | 6,400 | | | 90,200 | | Q4 2018 | | Q4 2019 |
2/8/2018 | | Minneapolis 2 | | | | | | | | | | | | | | | | | | | |
| | 3216 Winnetka Ave N | | | 10,543 | | | 7,802 | | | 2,741 | | | 8,773 | | | 83,026 | | Q2 2018 | | Q1 2019 |
3/30/2018 | | Philadelphia | | | | | | | | | | | | | | | | | | | |
| | 550 Allendale Rd | | | 14,338 | | | 7,870 | | | 6,468 | | | 8,093 | | | 69,383 | | Q2 2018 | | Q3 2019 |
4/6/2018 | | Minneapolis 3 | | | | | | | | | | | | | | | | | | | |
| | 101 American Blvd West | | | 12,883 | | | 2,333 | | | 10,550 | | | 2,206 | | | 86,075 | | Q3 2018 | | Q4 2019 |
5/1/2018 | | Miami 9 | | | | | | | | | | | | | | | | | | | |
| | 10651 W Okeechobee Rd | | | 12,421 | | | 2,803 | | | 9,618 | | | 2,564 | | | 70,538 | | Q1 2019 | | Q2 2020 |
5/15/2018 | | Atlanta 7 | | | | | | | | | | | | | | | | | | | |
| | 2915 Webb Rd | | | 9,418 | | | 861 | | | 8,557 | | | 775 | | | 76,519 | | Q3 2018 | | Q4 2019 |
5/23/2018 | | Kansas City | | | | | | | | | | | | | | | | | | | |
| | 510 Southwest Blvd | | | 9,968 | | | 1,228 | | | 8,740 | | | 1,137 | | | 77,188 | | Q3 2018 | | Q4 2019 |
6/7/2018 | | Orlando 5 | | | | | | | | | | | | | | | | | | | |
| | 7212 W Sand Lake Rd | | | 12,969 | | | 800 | | | 12,169 | | | 673 | | | 76,147 | | Q4 2018 | | Q1 2020 |
6/12/2018 | | Los Angeles 2 | | | | | | | | | | | | | | | | | | | |
| | 7855 Haskell Ave | | | 9,298 | | | 4,597 | | | 4,701 | | | 4,581 | | | 116,022 | | Q3 2019 | | Q4 2020 |
11/16/2018 | | Baltimore 2 | | | | | | | | | | | | | | | | | | | |
| | 8179 Ritchie Hwy | | | 9,247 | | | 390 | | | 8,857 | | | 301 | | | 61,750 | | Q1 2019 | | Q2 2020 |
Total Projects in Progress | | $ | 330,421 | | $ | 133,071 | | $ | 197,350 | | $ | 141,297 | | | | | | | |
| (1) | | The NRSF includes only climate controlled and non-climate controlled storage space. It does not include retail space, office space, non-covered RV space or parking spaces. |
| (2) | | Estimated C/O dates represent the Company’s best estimate as of December 31, 2018 based on project specific information learned through underwriting and communications with respective developers. These dates are subject to change due to unexpected project delays/efficiencies. |
| (3) | | This facility received a temporary C/O or C/O subsequent to December 31, 2018. |
Fourth Quarter 2018 |
| 14 |
Schedule of Heitman JV Development Projects Completed and in Progress
As of December 31, 2018
(unaudited, dollars in thousands)
Development Projects Completed:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | Location | | | | | | | | Remaining | | | | | | | | | | | | | | |
| | (MSA) | | | | | Funded | | Unfunded | | | | | Size | | Date | | Months | | % Physical |
Closing Date | | Address | | Commitment | | Investment | | Commitment (1) | | Fair Value | | (NRSF) (2) | | Opened | | Open (3) | | Occupancy (3) |
9/28/2016 | | Columbia | | | | | | | | | | | | | | | | | | | | | | | |
| | 401 Hampton St | | $ | 9,199 | | $ | 8,868 | | $ | 331 | | $ | 9,972 | | | 70,935 | | 8/23/2017 | | 18 | | | 56.3 | % |
4/15/2016 | | Washington DC | | | | | | | | | | | | | | | | | | | | | | | |
| | 1325 Kenilworth Ave NE | | | 17,269 | | | 17,005 | | | 264 | | | 19,200 | | | 90,115 | | 9/25/2017 | | 17 | | | 59.4 | % |
5/14/2015 | | Miami 1 | | | | | | | | | | | | | | | | | | | | | | | |
| | 490 NW 36th St | | | 13,867 | | | 12,250 | | | 1,617 | | | 14,338 | | | 75,770 | | 2/23/2018 | | 12 | | | 44.7 | % |
12/22/2016 | | Raleigh | | | | | | | | | | | | | | | | | | | | | | | |
| | 7710 Alexander Town Blvd | | | 8,877 | | | 8,432 | | | 445 | | | 9,450 | | | 64,108 | | 6/8/2018 | | 9 | | | 24.2 | % |
9/25/2015 | | Fort Lauderdale | | | | | | | | | | | | | | | | | | | | | | | |
| | 812 NW 1st St | | | 13,230 | | | 12,352 | | | 878 | | | 16,409 | | | 87,384 | | 7/26/2018 | | 7 | | | 24.3 | % |
5/14/2015 | | Miami 2 | | | | | | | | | | | | | | | | | | | | | | | |
| | 1100 NE 79th St | | | 14,849 | | | 13,961 | | | 888 | | | 14,562 | | | 74,080 | | 10/30/2018 | | 4 | | | 27.3 | % |
| | | | $ | 77,291 | | $ | 72,868 | | $ | 4,423 | | $ | 83,931 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
7/19/2016 | | Jacksonville (4) | | | | | | | | | | | | | | | | | | | | | | | |
| | 3211 San Pablo Rd S | | $ | 8,127 | | $ | 7,422 | | $ | 705 | | $ | 11,406 | | | 80,621 | | 7/26/2017 | | 19 | | | 79.0 | % |
8/15/2016 | | Atlanta 2 (4) | | | | | | | | | | | | | | | | | | | | | | | |
| | 11220 Medlock Bridge Rd | | | 8,772 | | | 8,293 | | | 479 | | | 9,004 | | | 70,189 | | 9/14/2017 | | 17 | | | 53.4 | % |
8/25/2016 | | Denver (4) | | | | | | | | | | | | | | | | | | | | | | | |
| | 2255 E 104th Ave | | | 11,032 | | | 10,221 | | | 811 | | | 12,716 | | | 85,575 | | 12/14/2017 | | 14 | | | 51.6 | % |
4/29/2016 | | Atlanta 1 (4) | | | | | | | | | | | | | | | | | | | | | | | |
| | 1801 Savoy Dr | | | 10,223 | | | 9,915 | | | 308 | | | 11,352 | | | 71,150 | | 4/12/2018 | | 10 | | | 35.0 | % |
Total Completed Development Projects | | $ | 38,154 | | $ | 35,851 | | $ | 2,303 | | $ | 44,478 | | | | | | | | | | | |
| (1) | | Commitment is fixed during underwriting at an amount deemed sufficient to cover interest carry and excess operating expenses over rental revenue during lease-up and deferred developer’s fees (if any) payable upon stabilization. Remaining unfunded commitment on completed projects is expected to be utilized primarily for such purposes. To the extent not needed for such purposes, such commitment will not be advanced. |
| (2) | | The NRSF includes only climate controlled and non-climate controlled storage space. It does not include retail space, office space, non-covered RV space or parking spaces. |
| (3) | | As of February 24, 2019. |
| (4) | | On January 28, 2019, the Heitman JV purchased 100% of the Class A membership units of the LLCs that owned these facilities. As such, these facilities are wholly-owned by the Heitman JV as of January 28, 2019. |
Development Projects In Progress:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | Location | | | | | | | | Remaining | | | | | | | | | | Estimated |
| | (MSA) | | | | | Funded | | Unfunded | | | | | Size | | Construction | | C/O |
Closing Date | | Address | | Commitment | | Investment | | Commitment | | Fair Value | | (NRSF) (1) | | Start Date | | Quarter (2) |
7/21/2016 | | New Jersey | | | | | | | | | | | | | | | | | | | |
| | 6 Central Ave | | $ | 7,828 | | $ | 5,749 | | $ | 2,079 | | $ | 6,717 | | | 59,897 | | Q2 2017 | | Q1 2019 (3) |
Total Development Projects in Progress | | $ | 7,828 | | $ | 5,749 | | $ | 2,079 | | $ | 6,717 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Total Heitman JV Investments | | $ | 123,273 | | $ | 114,468 | | $ | 8,805 | | $ | 135,126 | | | | | | | |
| (1) | | The NRSF includes only climate controlled and non-climate controlled storage space. It does not include retail space, office space, non-covered RV space or parking spaces. |
| (2) | | Estimated C/O dates represent the Company’s best estimate as of December 31, 2018 based on project specific information learned through underwriting and communications with respective developers. These dates are subject to change due to unexpected project delays/efficiencies. |
| (3) | | This facility received a temporary C/O or C/O subsequent to December 31, 2018. |
Fourth Quarter 2018 |
| 15 |
Closed Investments by Geography
As of December 31, 2018
Fourth Quarter 2018 |
| 16 |
Capital Sources and Investment Uses
As of December 31, 2018
(dollars in millions)
| | | |
| | | |
Estimated Capital to be Used in Investing Activities (1) | | | |
Contractual investment obligations: | | | |
Development property investments | | $ | 219 |
Bridge investments | | | 2 |
Self-storage real estate venture | | | 1 |
Total Committed Investments | | $ | 222 |
Prospective Investments per FY 2019 guidance: | | | 100 |
Total to Fund Investments | | $ | 322 |
| | | |
| | | |
Estimated Sources of Capital | | | |
Cash and cash equivalents as of December 31, 2018 | | $ | 9 |
Identified secured debt on one wholly-owned property (occurred in Q1 2019) | | | 9 |
Remaining credit facility capacity (2) | | | 235 |
Remaining capital needs | | | 69 |
Total Sources | | $ | 322 |
| (1) | | Does not include financing spend or operating cash flow. |
| (2) | | Assumes increase in the availability under the Credit Facility. As of December 31, 2018, $91.3 million was available for borrowing under the Credit Facility. |
The company may use any combination of the following capital sources to fund additional capital needs:
| · | | Refinancing of JCAP mortgage indebtedness (49.9% profits interest and ROFR retained) - $50 million to $70 million |
| · | | Potential sales of facilities underlying current development investments to a third party - $10 million to $20 million |
| · | | Series B Preferred Stock ATM issuances - $10 million |
| · | | Common Stock ATM issuances - $75 million |
| · | | Joint venture financing proceeds - $2 million to $5 million |
| · | | Potential exercise of accordion feature of Credit Facility - $165 million |
Timing of Funding $322 million of Remaining and Prospective Investments
Fourth Quarter 2018 |
| 17 |
Capital Structure
As of December 31, 2018
(dollars in millions)
| | | |
| | | |
Credit Facility Outstanding | | $ | - |
Term Loans | | | 25 |
Series A Preferred Stock | | | 125 |
Series B Preferred Stock | | | 39 |
Common Stock | | | 405 |
Total Capital | | $ | 594 |
Fourth Quarter 2018 |
| 18 |
Jernigan Capital, Inc.
Company Information |
| | | | | | |
Corporate Headquarters | | Trading Symbol | | Investor Relations | | Information Requests |
6410 Poplar Avenue | | Common shares: JCAP | | 6410 Poplar Avenue | | To request an Investor Relations |
Suite 650 | | 7.00% Series B Preferred Stock: JCAP- | | Suite 650 | | package or annual report, please |
Memphis, TN 38119 | | PR B | | Memphis, TN 38119 | | visit our website at |
901.567.9510 | | Stock Exchange Listing | | 901.567.9510 | | www.jernigancapital.com |
| | New York Stock Exchange | | | | |
| | |
Executive Management |
| | |
Dean Jernigan | | John A. Good |
Executive Chairman | | Chief Executive Officer |
| | |
Jonathan Perry | | David Corak |
President and Chief Investment Officer | | Senior Vice President of Corporate Finance |
| | |
Kelly P. Luttrell | | |
Senior Vice President, Chief Financial Officer, Treasurer and Corporate Secretary | | |
| | |
Independent Directors |
| | |
Randall L. Churchey | | Mark O. Decker |
Director | | Director |
| | |
James D. Dondero | | Rebecca Owen |
Director | | Director |
| | |
Howard A. Silver | | Harry J. Thie |
Director | | Director |
| | |
Equity Research Coverage |
| | |
Baird Equity Research | | B. Riley FBR |
RJ Milligan | | Tim Hayes |
rjmilligan@rwbaird.com | | timothyhayes@brileyfbr.com |
| | |
Jefferies LLC | | KeyBanc Capital Markets |
Omotayo Okusanya | | Todd M. Thomas |
tokusanya@jefferies.com | | tthomas@key.com |
| | |
Raymond James & Associates | | |
Jonathan Hughes | | |
jonathan.hughes@raymondjames.com | | |
Any opinions, estimates, forecasts or predictions regarding Jernigan Capital’s performance made by these analysts are theirs alone and do not represent opinions, estimates, forecasts or predictions of Jernigan Capital or its management. Jernigan Capital does not by its reference above or distribution imply its endorsement of or concurrence with such opinions, estimates, forecasts or predictions.
Fourth Quarter 2018 |
| 19 |
