JCAP - Earnings call transcript Q2 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to the Jernigan Capital Second Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Corak. David ahead. go Please

David Corak

being and listen-only Conference the prepared David Call. of open participants questions conference Vice everyone, At your X, Quarter time, for The this Corak, Capital floor XXXX remarks. President all is Today's Finance. Earnings My in Corporate our Wednesday, welcome morning, August Jernigan XXXX. a to are Second Senior recorded, mode. Good following name be is will

your prepared with we you business. are the company's reconciliation and review. contain stated questions to results due press please those Act or is latest from These to statements that other and in included Before Actual associated by release. Private in encourage security differ and federal risks statements in by our Reform of may management's qualified GAAP provided statements with non-GAAP SEC remarks implied the uncertainties defined we to begin, Litigation call statements as filings which of by contained financial this company's cautionary forward-looking XXXX materially forward-looking measures the to could on laws. answers A remember the the SEC, Securities forward-looking the our the

press our You can replay our audio and website www.jernigancapital.com. this webcast SEC find release, conference reports of at on call

turn Good, to over on floor John and Jernigan, and President the Dean? I'll the CEO; myself, Jernigan. addition and COO; now In Luttrell, call Dean today, have to Chairman we Kelly Mr. CFO.

Dean Jernigan

hoped clouds. thought been about that hope, this. our a morning, position Thanks just I will a you We your in I interest morning, a one, coming. of have true Okay. good we and for to cleared see Thanks, now this runway for some in toward Jernigan today. remarks the we're development could a landing tell Well, land of David. of for very has this today suspected. joining We've for soft in soft ring as is out it to and speaking The everyone. we tower parts We Thanks relates us. are that year on sector, sight. landing latter cycle Good few you Capital. to year. feel but soft we are about that self-storage in construction next confident the I we The the we national will landing that have us can

very will be trend are twin years XXXX, We that forward confident concerned. are very a see year. and and to and decrease will are lending as that of XXXX as in starts now we far we as We're peak starting dramatic starts go confident deliveries today next down QX between

As little XXX More the -- into more from this match we properties we data. from at I a you In We each get really the start lot has lines sources are data And point doubt trending tapered do. development will have markets. those numbers in of of growth out X% dramatically, to sources population matching opportunities anyone lending our normal than there XXX population in again we am along of other collecting just XXXX, than growth. across deliveries over top-XX collect just do. as to data. will there and we it that be down, track starts the sector. be lot down still confident more is development I more a markets, we trend extremely collecting project And the time I know, that a being to anyone but doubt development, at looks year there's in will delivered will some of words, supply-demand

submarkets? some about perhaps Austin, few talk Nashville, Raleigh more. have still do So in a you and us we Absolutely, certain challenges heard

job of possible collect daily to good good providers data on today provide as to the marketplace data basis. and much I making think trying doing decisions we're that as job, to very ensure are a good the a

defer for to I'll those So data providers details.

are capital just career. As could you watch for with want may watch have perhaps, noticed, job providers university that to the of their doing data cities, Nashville markets millennials, very about it I and They very want attractive, populations list, attractive list. to of relates do Raleigh we millennials as They're all in I said. a University to minute. X than good may better a early providing stopped job where we've after our migrate and as or are, markets, a But to because Austin, course, examples talk are large

So a X you an cities, will. if pipeline, development outsized among attracted those few have others,

And so about X% population have very growth. turbulence in high those sure double maybe left little the there average. cities markets for Those will double well growth, -- I X are there. But national population probably know be excess, a

So that in extra supply markets that's be going absorbed. will to those be added

all concerned as to markets this that those absorbed in seeing or be all will up rates there about will term, back fact, long trend stabilized numbers. not we're So markets at of today out and normal development I'm any

think X So would our XX-plus back, will And stay last line I a top we of lines that's trending or it that quarters years the over where what's I the few top-line as back over back national companies, last trending that reported looking X growth been average suggested, at at again. think, starts trend the before X quarters, up about early maybe we about the over so public far by on, X%. along more we're to next

the I've companies. because for these the will think public as discussed to strong it I stabilize closer in so XXXX in past, are X%, platforms,

So driven cycle. development this what's

and way really millennials It's millennials. quickly. have in share about I'll caused it's a with interesting, all you some the The need think in just cycle. thoughts development I the this really big

that's no had live X-story millennials X-story in no building, picket either white garden X it the housing. the to close complexes inner to in around multifamily live longer, came the X or and building X, didn't tennis close sprawling or work with started where to to suburbia. in But we these They walk-ups, they urban X, public the the core we The where to kicking wanted they to to to swimming wanted play. they close pools, then, when first their as live, in core, much transportation, to as close years urban decided needed back they apartments course, in far in house guys X longer and without these apartment to off core, That's mind anything develop out to fence cycle where the close be. and of Of They millennials our courts. prior for without or wanted where Well, XXXX. the smaller started the residence.

because were many about great X we architectural I to of from most million Recession. millennials. deal of the those So multifamily they with on for helped need, Great single-family to living as a would of those millennials. influence picked households the us the And shifted X result say the location look. they were the had and probably us They also a of have

of pleased, Vs know, Everybody's buildings, Gen X-story we're planners. Concrete, vertical X, V properties. X, municipal including properties, meaning X, all beautiful. generation a As very vertical, buildings. glass, building X, lot we steel, vertical what call they're and we

smarter need a a the new we're And in of more location a because developing the different developer did for I think developer, a that and a the this a us developer, course, and millennials building, building of location, concrete experienced us helping the and data-driven developer. the define had developer, So favor, developer, sector. the a we, look steel and vertical more

today. there down is listening, So and dramatically. because being down, lenders People or those listening. us of the trend what's developers are much out like listening see going The on, data are we definitely so are so

to John. soft very landing very, today we our say, I'm over in that With a it that, pleased to I'll clearly, So future. turn have

John Good

and Thanks, good for thanks morning. Dean, everyone and here, being

our continue results, XXXX to pleased with themselves, a quarter. The this be financial We speak for performance. solid believe, beat we very

on is since In million the underwritten our XX% to our brings during to that are remains guidance. second our our investment very of projects consistent investments investments of these commitments date capital with expected high, quarter IPO. yields in midpoint we quality development new addition, on-balance-sheet closed of X which XXXX, The our total the $XXX.X of annual alone, and

portfolio approximately for this growth. XX% recognized We also have unlocked in existing prospective substantial our only end value earnings our we provides the through potential of value had and value believe as that financed. continue of with on to All the future book significant we quarter, we fair second the projects us

quarter. on to the the end of Moving

the best facilities As of best of assets is generation total for in V $XXX and submarkets quarter, investments are America end sheet that first this in the we believe million the And comprised high-quality mark self-storage surpassed of balance the some in in we time. XX of the in markets the America.

we has also lease-up with we an of additional season. of an issuing wholly-owned a our by million occupancy rental basis our of signing properties strengthened past XX from this properties of are X $XX that a sheet stock million quarter, for also loan million of balance be of $XX and sheet by issued the while of stock, term secured During will secured preferred nonbinding $XX common very and that the average pleased added through end April We're portfolio weekend. those how performed this self-storage had at in our points end We quarter the the X,XXX properties.

of the excellence and revenue of quality by our expectations higher-than-expected and our marketing as portfolio, that side. and this its the of occupancy. this strength the X both a of the indication We continual management platforms was of our managers locations outperformed our In and is rate third-party result assets, addition, market our micro side very outperformance driven wholly-owned on think quarter as for our on strong the well facilities the

XX labor be are of the factors, of of projects slowly calls, like. noted could than We in and municipalities, there. in continue can some developers properties progress this some to up combination moving from feedback our under pop a extreme due make certain here cases continue permitting are conditions construction number in previous received be we've would some weather to they different to places, delays On that a that on shortages And construction. their

to are experiencing nationwide we departments certificates appear of as seem at addition, property occupancy, projects the in building In highs. at to of of and inspection understaffed the delays end the routinely of be all and work projects cyclical be issuance types of the tail number of completed

We being be continue overworked. are pushed municipalities story and sector think sector-wide. told is back a self-storage this throughout So the deliveries to consistent

a number in longer-term that top-XX sector quarter, markets issue. the not of June, the third top-XX into And many quarter this During the timing a think the potentially back issue second MSAs. short-term some deliveries a trend XXXX of XXXX. especially saw the this is could from We continue and slip the push into in in quarter deliveries we think and

to we As an of going get of into issue sense developer head-on, partners value and the further to this like delays some the year. vulnerable industry, top all else this we're our over our line as which a have everybody our we, is, to impact balance attack are continue year, could while better recognition. the in fair markets And

stands forward, million Looking approximately today. $XXX pipeline our investment at

that quarters this in and notice comparable in that the down prior reported is You'll from year. levels we've last period

pretty phenomenon is as previously loudly, development on fourth our communicated, the we As its in part, cycle's intentional an year. now this

on be be to meticulous run deals home and underwriting focused deal We're continue very to that deem in we deals. selectivity. We our

will senior opportunities added self-storage to Jonathan very Investment investment you at know efforts. exciting from transactions XX-year Over Many bit of our as to on that Investment believe personnel, as as of investment estate innovative invaluable and served Perry for we us CubeSmart had has Finally, We he as President, our in a customized Chief investment billions touch be team he addition I led where Executive that Jonathan Vice to experience many the progresses, time a to Jonathan our we cycle his investment Chief Officer. career, as a June. real team and of Officer. leads will opportunities. We dollars have want

our initiatives very to have Jonathan many developer our I'm in in confident properties. see accretive And and months coming and initiatives. growth we as shareholders that opportunities to pursue add those. our team above over enormous other expect expect our acquire to will the value we strategic We to interest

and things all prepared prepared and that's remarks. for terms turn from me the David to with I'll in balance So the Kelly of of that, over remarks,

Kelly Luttrell

quarterly call the guidance. over both Good John. a exceeding of before quarter's second our to bit of discuss Last provide everybody. of night, per more adjusted Thanks, on results we quarter the end high the David detail reported earnings capital $X.XX, position. $X.XX morning, turning I'll and to share EPS our

to year-over-year. experience noteworthy revenue we that discussion. are revenue a and continue results XXX% elements to warrant believe We further XXX% strong excuse There growth XX% increasing the few quarter-over-quarter -- total with me,

First, rate in came NOI were with in as while were on occupancy higher assets we line expectations. guidance our and X had our above wholly-owned expenses anticipated QX than our

less second due for our slightly investments portfolio; interest primary second above in above guidance quarter, was drivers range properties our faster-than-expected in were, And guidance $X.X in than and interest one, from our value fair and our the at impact largely income portfolio. various Second, anticipated. end rates faster-than-expected high in construction to of for the million. fundings our The two, on the came various third, range of lease-up quarter slightly this change the we at

The a including and as a with beat count these manager. mentioned, were higher share average Lastly, stock effect to outstanding, of higher was the effects in interest fees relative our expense weighted shares June, second common guidance higher our there even related several the from net to quarter all to elements lower our offering. John offering

common You'll EPS guidance well. as earnings also notice for year down EPS We're to full adjusted in adjusting annual the offering. and that components release June of XXXX our slightly adjusted third guidance certain provided and account we quarter our our stock

raised interest our our increased we fees our we the we expected interest expected income, expense Additionally, lowered and to manager. expected

this value also guidance. maintain chosen have narrow full We rather guidance to year than our fair at time

with mentioned, inspections, portfolio, the being and While the construction [indiscernible] we sector in with as of shortages experienced are our overall in pleased labor currently issues pace John delays. our

revisit of to We others, first our to XXXX. our our quarter. our our with fair continue earnings. projects. we projects, by fair the be continue also last the On are that third going scheduled fourth our of third quarter we value recognition to changed monitor all release some in note deferred quarter have deliver the guidance some quarter closely experience our work And several value monitor not to uncertainties, light guidance. with developers We're we'll of on night. we of the to progress we construction in into being but In could If note, of that range provided earnings experienced these delays

$XX I'll as in is in timing due issued that in midpoint notice guidance $X.X midpoint a and of David midpoint is With change QX as third in over $XX.X of to than is to we million our You'll attributed quarter us we million million our higher than for QX the coming value guidance fair to provided to the it expect in discuss the lower that, part and hit portion turn will the This well. solely capital. we slightly May.

David Corak

Kelly. Thanks,

to through stock $XX had John June prices book quarter We active As noted with common capital at offering the public his an in in value. about issued we the to markets. million in through remarks, our premiums ATM and program, public our

preferred A through lastly, issued And of million issued preferred to stock Series also $XX our B million our of we Series $X.X additional preferred ATM. stock We an Capital. Highland

notable some activities quarter had subsequent also end. We to

our evidences entered into term our a our credit facilities with one of the that are as We projects wholly-owned finance believe reflects that demonstrates $XX.X we commercial finance debt the we appropriate line obtain million owning and the our sheet capital banks this access to ability by First, of term on strategic of of the X value the to progresses. banks from further types development demand of secured self-storage nonbinding lease-up, cycle to assets.

offering July This final of to the public issue stock stock. Capital excess recognizing the extend and temporarily, September on of date on $XX from has preferred of some agreed we cash XX to effect that Second, sheet X the XXXX. positive June to A Highland us XX, left balance last with Series the of saving cash million dividend months $XX that the million

leverage ample sheet dry of quarter stood of conservative and These communicated around debt-to-total are have consistent levels. levels to as A stood believe have our by at target plus capital balance that levels assets provided have future we million measured these with capacity as we at XX%. As $XX growth. today, at and Notably, total end We our X% and Series preferred for fortified remaining. continuously powder leverage debt assets the activities

the a believe we entering XXXX of of forward, position terms strength half capital. we're second Looking from in

cash the our commitments capital, estimated contractual table as total to uses as our rest our well Looking you'll is XX investment includes which we contained sources $XX be for XXXX of million to remaining -- of the at incur and on uses our midpoint Page Also, have million that total of investment earnings the investment supplemental, XXXX identified million. XXXX, current expect of obligations per capital through see $XXX our guidance. of $XXX of

Importantly, in A comprised investments. of projected commitments we existing hand, aforementioned in have cash funding our of line our expected all repayments equity Series of property-specific and the preferred XXXX of XXXX a for on combination our debt, and place capacity existing line,

$XX Beyond of of capital beyond. next million over the in that, have which remaining and approximately years, we needs all few XXXX falls

have We proceeds. sales, several sources sales, capital, and to, of joint ATM activities, refinancing not additional common sales, loan Series including, debt limited potential B secured preferred but venture equity noted asset

add As inception, prudently continue value of our believe seek funding we will match with to to have our obligations we company. capital we the to since sources that done best

over prepared that's in we So now Q&A. turn remarks. all it have I'll terms to of

Operator

Our Baird. question R.J. comes Milligan Instructions] W. first Robert from [Operator of

R.J. Milligan

guys. morning Good

color, You the about points ahead on side? underwriting and curious, for are you where in the underwriting the you I'm of pretty occupancy. assets effective now basis relative leasing or that give guys rent terms just if of strong in any that was X,XXX lease-up to cited season comments could guys you're

John Good

hit since take been so as And that add you well result a of your -- physical and to X, we process period. underwriting you income Yes, after as as on one. anybody. know, know that X-year you then net -- a X- to to stabilize season lease-up there that And our a to underwrite We rates. I'll season you've day operating leasing that stabilized R.J., a generally,

contributed we amount being XX% us stabilized a can't kind a when process, do, this projects it rates for because, I lease-up as expectations lease up. factor, that early to little numbers. underwritten cash lease-up I again, those So in tracking look hard tracking little that where getting well very that at statistics, XX% bit we in to the probably very from terms company in we are you're range, because well. are to appears dynamic to a when of the are comment on the that of say will into those if of give are it's toward too but early, we're you is

And much get when out, like so X feel we're to target. that very we on to going out years we years be X or

R.J. Milligan

my are other Okay, what start helpful. do that's is would structure I And they possible -- versus work when second see of what sort addition you guess with Jernigan? you acquisitions? buying how there customized buying guys are that interest? one-off for Jonathan, the the a developers' opportunities out And guys question just that to deal expect of

John Good

Okay.

parts. to the that So question with deal X in

interests those X in that as we did, XXXX. interest The summer were those And some you first of point. kind And part were the of the is done to projects know, that we've early of this developer developer purchases. bought

most this first happened portfolio, our in generally As lease-up those you very through the properties. occur. the party of joint venture. a point joint those when in and activity Heitman to Heitman investment into transactions year is got venture voice much of you're And of the know, a At in XXXX, much of still as we

is least have XXXX on-balance-sheet how developer Heitman once X they And maybe and to were So typically us start more balance in season, many mature, then portfolio investments the they're ready and our leasing not happens. get a of that leasing a ripe before seasons you leaves speaking, with to the That say need will sell. of at those investments.

time, of XXXX, in that investments in some wanted who of projects have this or point But a in end have the these was come of monetize I those a developers portfolio so that self-storage. they want to And in equity now we'll will XXXX. go between these us of could the and equity think in And their their was who can investment begun really Now begin at of mature. to to do number we -- will portfolio at begun portion the few other we've start monetize end XXXX, had that to developers projects. happen incidences in to of investments have and

involved Now We for bridge, you question, part began the in and that did that the was your transaction know really transaction. that done January early second of in bridge we've that portfolio the XXXX. a

and for everything major the period likelihood private timing types and to projects these see of to feel own situations that so of equity earlier at We a that of of types is investors in maturity to little projects half monetization That's structure. of of that had equity back similar a cycle. one facing the are into have them. later. IRR Texas And seeing fits Many all like, that one-size development are move mind, as to market time this are of driven, are few have risk deal good year, event. was just loans is the a markets, those construction In their substantial you it is who So private transactions. development coming not investors situation have we their beginning the want a other of we a current equity have some

is different. each think I transaction

are like this there's the for is through toward nice the to couple cycle cycle acquisition a get think us we I here move finally, into so on half feel having leasing that's and of think will And and you seasons, the be Jonathan of I of very going as deals same will particular development least, as existing that And balance cycle a that those in types are to we markets in that at into we've move add-ins we the look have year. of have over those at help of nice in to, XXXX helpful. those of XXXX opportunity are a XXXX markets that a types as to early to this throughout be properties invested There be properties year, And back us projects the well likely that may opportunity. next become markets. few But the think creative think, And more opportunities numerous. those with But end I we structuring be then opportunities. opportunities, the of as begin. as

we And will look those. at so a take

I be think his off we're we have business of those. have knows the in that these cycle now. source opportunity of top feel And to going well. the right the an best in of part guy He most as to the projects a to we player head like

Operator

of Jonathan James. question. with comes question next from proceed Raymond Hughes Please Our your

Jonathan Hughes

some thanks morning, delays the projects. the then components being mentioned on also, today, Dean, built good and Gen of earlier for time. products V Hey that you concrete steel the and

mentioned quantify John, maybe you're could in that. in and you about materials maybe your terms I cost, increases labor? you also seeing talk think, what construction But just then of

Dean Jernigan

a to say gone not all deal-breaker. storage been not been costs the are That steel middle rents cost deal-breaker. some. out order around alluding the rolled in has from been lease-up of underwriting facility. fact the Labor fact of back development that, we're I Yes, what has Jonathan. cycle, in That big morning, wouldn't Good just Really of capture have and a occupancy, building the the a that been a a standpoint added too. on both up deal-breaker there. general has is as was us have R.J. that to shortages materially an

that don't can we numbers combination gotten just the but pencil. items, no property screen one of my I I aggressive assessors have radar tax know country. add those way in more, more we're across the off and now, those they longer. were guys, for so the A -- And is early career,

seeing a a we're And an taxes as property little from being well. underwriting bit standpoint so problem of

the have window closed the altogether You developers. add that basically and for banks

We're are going we're the so, it -- new that's the supply reason components to those a rightly forward. and line not need so development. And of of going diminished seeing, just

think responsible in. So development I is we're cycle very this a

The first ever from my experience.

Jonathan Hughes

of I you that just peak had But and did mean, view and banks. been seen have you've about very consistent I in quantify terms on know from talk hard on is other But of the sources in fund that developments? what the a you dual else supports it's terms that, what competitors Okay. year-over-year you've doing. to activity you're seeing maybe basis? somebody to what

Dean Jernigan

to time guys even largest, other don't the on in talk a that see a they they their only conversation We need now where just these think we have clearly all they and the And X lines, developers they're the one day. I markets focused drawn all the of with And had for fund. of battle country in and more storage.

not any smarter not been. ever amount. much, -- upon than has we've it fair lend to more. And much So a just bankers willing I dependent mean, being we're to the ourselves regulating we're We're

has John to think something I add.

John Good

confidently of I answer I've -- I've Yes, year first the that show been loan for the the with last Matrix of been good sources the for yet it that has down with question projects expected begun and to has in Yardi know Jonathan, origination then I last several quarters of call construction through those every that's X pretty think your that when we XXXX has that that earlier the think shared the but updated, an like the And QX not quarter me month the for XXXX, of data. regarding the And combine data projects of will capital. first banks into seen data get pretty to indicative that track the data I for gotten quarter can decline me were said, to this be kind of And soft last originations window, originations. in Well, we're going through expectation the and they of quarters quarter. of would number deliveries quarter seeing precipitous deliveries from year with -- in seeing for Dean loan off consistent running a and not in And proposed show that XXXX, XXX what XXXX combination construction year. where that as when between construction properties now the somewhere and mid-XXX a has of you drop the closing that really per second XXXX. third of cycle you the quarter with we're the of penciling resulted up period that and beginning data were XXX the this you landing number third range, the XXXX had significantly. loan

Jonathan Hughes

obviously, guess, for. one big I traded stabilized that degree. if in I Okay, [X, calculation? X.X changed, obviously And month a a that There premium it look maybe rate, fair that's looking that's your estimate exactly rate portfolio in you what income how more. your is just cap X] Curious used at had last then to at cap embedded value was deal a

John Good

Yes, But and reasonable be as increases. to the a the that we've we have also, I and need at we at I was properties way value Jonathan, then to know conservative the both that recorded are. same ilk reasonably of was rate And think occurred we same time, the don't we prudent conservative. feel the of the And to that have cap fair consistently that in through be and underwritten what trade stay tried south our moved underwrite. properties process, involved were

least kind fair cap we're which any for of so don't have foreseeable at to change right value, intention And the average that rate to now we evaluating X.X future.

Jonathan Hughes

for it me. for taking questions. Thanks my that's Okay,

Operator

with Markets. question of proceed Thomas next Please Capital Todd your question. KeyBanc from comes Our

Unidentified Analyst

on Drew Hey, good morning. Todd. is for This

looking more Just of curious home slower you commitments. regarding deals. you've John, mentioned been new you're selective run that loan the for and pace

at deal be definition in criteria? you your what on has underwriting changed could maybe, pace home-run And of think recently, comment might then new of like what all if your terms of to commitments Just in if a curious, XXXX? the you look

John Good

national I high high our Well, don't might in visibility home year. of in dense fourth of criteria throw submarket. put around ahead maybe a for the throughout the things that's I good to We generally, been below March, or the definitive particular very definition counts traffic of And more tried of have But looking run have new per think projects. of facility we're in square location, that. consistent has urban of degree might just average And infill -- I supply very said significantly submarkets: third some call multifamily submarket. a tenancy be lack that footage And and to want a you finally, and like us. in the capita at

we a pipeline And going right range as hit feel we'll if that's look home this markets to run. now. year. I exist it is for going not. And And we've home why XXXX it that be We're sub know be remains XXXX, this to guidance our year. we're seen. we like in of looked for into that that, just looking We is confident then to definition or markets selectivity So for run think our what that are is our think they

Unidentified Analyst

comment Got it, piece up a that. your that's could the follow helpful. on all inbound Has changed at that? just you on And recently, of volume

John Good

our of through developers. our way pipeline cycle, life half we had We, about developed

very a coming relationships. So they same of our these not their in now pipeline work become continuing educated how underwriting. own adopted but have And of only of is the hard, philosophy are well our type guys kind but in they've to we from underwrite, lot existing

projects job. working home us their those outsourcing meet deals very and they're they're bringing -- run that believe they this they're that So criteria. hard all is But to full-time

with so really of there group working. plenty activity. of We because definitive And don't whom terms have we of is measure it calls, inbound number we're in this

Dean Jernigan

Dean, that And is -- can that other website, agree online see but comes those all who tell this developers company, the let with me the And inbound in are you from through confirm one. the suspect website. our I calls hear comes are our I through onto words down are dramatically. that I query don't We that our every into you down. I in -- Would that? calls, not program pile

John Good

our together core to with company. that's agree we're best like we that feel what on build group and focus were way that. the We completely I agree I doing. always to I get our think that. that's and with intending And

Unidentified Analyst

helpful of to Got last guys. team. of me, the it, the one from then color, Jonathan following acquisition that's And one just Perry kind

the horizon? of see in sort there as REIT, the of you more you future an any on you might is to transition Just guys that needs equity see magnitude? guys staffing that further curious, of that Anything

John Good

immediately. Not

for on additional appropriately at To really not at significant much point. have we're we're crystal can And you very think help we to and scalable now now, where this you give staffing, we're ball I several years. that. at staffed very what doing a a look have really goes we're point that out

develop, let we we do know. plan and basis, to to actively for which future, as As guys we a on daily things as the we'll evolve you strategically continue continue

Operator

FBR. question comes Tim next Hayes question. B. of Our Riley with proceed your from Please

Tim Hayes

does I of of headwind not piece call. were earlier a John the value on fair 'XX from said the for that just on Kelly guidance the to few reflect And landing your you the And as the of well? want each comments that on? soft you together saying delays year comments in were construction potential impacts that Dean, the had try touched and reflective

Dean Jernigan

ahead, Go Kelly.

Kelly Luttrell

the we chose give not as contingency Good -- to experience narrow to morning. any sector not to range to that what No, starts experience we well. range should us delays, we -- virtue significant enough by the capture did

year. of the reasoning go our behind -- of during this at the we year good latter So expected to point, of part have left a portion with that still through a lot half the was deliveries

this range to So that's at time. not narrow the we why opted

Tim Hayes

Got it, okay.

Dean Jernigan

were your I asking. Tim, quite question what And you understand didn't ask again.

Tim Hayes

guess, of landing just the delays. in view soft and your 'XX construction of in if comments 'XX the, was I your specifically, Dean, near-term headwind from wondering, the supply reflective on expected

Dean Jernigan

The the longer also was a the window no. really on of there. the with income side, no, I on closed. worked, no the out speaking Bank little but cost the balancing that supply fact just demand side. numbers bit No, is the

very, a a properties have already mean, there that always I been or completed. particular, recently market have doesn't X been to getting but out today difficult we it's that that just it's particular. submarket have or in very top-XX just find are very We X new starts

we're coming very clear we're talking to me. John and to that and to that anything coming And just regarding It's about. a cycle cycle of not of it's all an end that's so end the a was headwinds

Tim Hayes

just Okay, the and on on from sale any got potential highlighted repayment reflect the expected repayment gain loss the side. early proceeds XQ the fees loan? asset Do or any then it. capital And asset Dave, you loan in sale or

David Corak

sources use You're in talking the system? about in

Tim Hayes

Correct.

David Corak

net portion Yes, back our so of just get that reflects that the we'll proceeds.

Tim Hayes

Okay.

John Good

of of and not are a of is kind definitive assets very this think agreement we point at one yet. I our any earliest

it's agreement. to is or terms So don't appropriately it. get want last get under to loan whatever it any if as is, we my we've years. will and we're of details early marked fee I expectation minimal, been into to over about our any And small in value our payment loss, X But would fair through worked gain a This any. be asset the market accounting entitled

Operator

Instructions] [Operator from next Jefferies. of comes George Our question Hoglund

George Hoglund

morning. Good

to self-storage? interest terms that capital also, get you looking in target planned Just you'd for of it's would going be going also much lot has a capital would sort what one of invest XX% do 'XX we since put been question you of assuming hear it, done you within still acquisitions a the some then could Or kind if how of in And capital acquisitions And forward. that terms then JV? potentially have forward of around much going be competition of the How to -- goalposts to out? view a acquisitions? kind as JV, into in in of

John Good

we think, would third-party invested words, joint acquisitions standpoint say of acquisitions, other in in projects doing I that first that someone. I structure, I or in engage extent the a we think with be not from have George, the likely of JV Yes, all, venture will to in, already we

it's I much what I'm But calls. those kind at acquisition properties sure plans, capital point, we'll we would yet. an to and We of And where as would quite actually commit be cycle say available. insights need hard give are it. structure we're to to this on there not how more develop future we that into think get there

competition Dean bit. might want to think talk a the I about little

Dean Jernigan

assets marketed assets, I Yes, buying was. we XXX assets. I on my we look bought toe-to-toe about to forward it either off-market with CubeSmart, assets, USA or anyone moving over Storage competing mean, bought and did X.X we all of in And believe and I've left Jonathan left they've he's involved there, of Since assets. was billion. has And number probably those. equal I he since another another on days, -- continued

about as right a and is buy the with And capital of put will to And know up do how experience we storage excited to underwrite acquisition far the it. doubt Jonathan's there no about, So excited how it facility. source to that but really experience really we we're a storage my as I So there anybody facility. with,

John Good

capital make to and your this to last that goes one George, we I'll comment need. question potential would you of

access to and supplemental. uses the the sources You have table in

in are just to identified. that be the and would to there's to you get now, capital structures through that we've about only well see $XXX is right additional then joint of amount fully remaining everything about table, of going we million As any the when that million venture that available into our sources covered within amount committed we we have joint on we that cover through amount $XX these existing and of -- that currently sources identified in XXXX, And XXXX that capital require have we're we such for venture capital of other of we've very portfolio.

Operator

Ladies the comments. to session. our to and would question-and-answer have reached end closing call Jernigan gentlemen, we back I turn Dean Mr. of like the for

Dean Jernigan

for soon. seeing and Jernigan interesting to you again, Thanks, Look Capital. your forward Okay. support

Operator

conference. today's concludes This

for your time. You may your disconnect at participation. lines you this Thank

Jernigan Capital (JCAP) 2 Aug 182018 Q2 Earnings call transcript