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(State or other jurisdiction incorporation or organization)
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(Commission File No.)
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(I.R.S. Employer Identification No.)
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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||
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Emerging growth company.
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or
revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
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Item 5.02.
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Departure of Directors or Certain Officers; Election of
Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
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Item 8.01.
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Other Events.
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Projections(1)
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||||||||||||||||||||
Twelve Months Ending December 31
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||||||||||||||||||||
2020
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2021
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2022
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2023
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2024
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||||||||||||||||
Income Statement
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||||||||||||||||||||
Owned Property Revenue
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$
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22.0
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$
|
42.3
|
$
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64.9
|
$
|
80.2
|
$
|
88.8
|
||||||||||
Owned Property Expense
|
$
|
(12.3
|
)
|
$
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(20.7
|
)
|
$
|
(26.5
|
)
|
$
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(28.9
|
)
|
$
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(30.8
|
)
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|||||
Owned Net Operating Income(2)
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$
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9.6
|
$
|
21.6
|
$
|
38.5
|
$
|
51.4
|
$
|
58.0
|
||||||||||
Interest Income
|
$
|
24.0
|
$
|
15.0
|
$
|
10.3
|
$
|
6.1
|
$
|
4.7
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||||||||||
Other Income
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$
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0.3
|
$
|
0.3
|
$
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0.3
|
$
|
0.3
|
$
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0.3
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||||||||||
JV Income (Excluding Depreciation and amortization)
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$
|
0.2
|
$
|
0.2
|
$
|
0.3
|
$
|
0.3
|
$
|
0.3
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||||||||||
General & Administrative Expense
|
$
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(8.9
|
)
|
$
|
(8.6
|
)
|
$
|
(8.9
|
)
|
$
|
(9.3
|
)
|
$
|
(9.7
|
)
|
|||||
Management Fee
|
$
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(1.2
|
)
|
--
|
--
|
--
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--
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|||||||||||||
Incentive Fee
|
--
|
--
|
--
|
--
|
--
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|||||||||||||||
EBITDA(3)
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$
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24.0
|
$
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28.4
|
$
|
40.3
|
$
|
48.7
|
$
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53.6
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||||||||||
Total Fair Market Value Gain / (Loss) (including Joint Ventures)
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$
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(8.1
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)
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$
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19.4
|
$
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13.7
|
$
|
8.2
|
$
|
7.3
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|||||||||
Gains from Dispositions / Sales
|
$
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0.6
|
--
|
--
|
--
|
--
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||||||||||||||
Preferred Distributions
|
$
|
(19.2
|
)
|
$
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(13.6
|
)
|
$
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(2.8
|
)
|
--
|
--
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|||||||||
Stock Based Compensation
|
$
|
(2.3
|
)
|
$
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(2.1
|
)
|
$
|
(1.9
|
)
|
$
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(1.8
|
)
|
$
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(1.8
|
)
|
|||||
Interest Expense
|
$
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(12.1
|
)
|
$
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(12.1
|
)
|
$
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(11.9
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)
|
$
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(9.8
|
)
|
$
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(8.4
|
)
|
|||||
Depreciation & Amortization (including Joint Ventures)
|
$
|
(19.4
|
)
|
$
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(21.9
|
)
|
$
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(22.1
|
)
|
$
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(21.3
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)
|
$
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(20.2
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)
|
|||||
Corporate Depreciation & Amortization
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$
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(0.1
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)
|
$
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(0.1
|
)
|
$
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(0.1
|
)
|
$
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(0.1
|
)
|
$
|
(0.1
|
)
|
|||||
Restructuring Charges
|
$
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(42.6
|
)
|
--
|
--
|
--
|
--
|
|||||||||||||
Net Income(4)
|
$
|
(79.2
|
)
|
$
|
(1.9
|
)
|
$
|
15.3
|
$
|
23.9
|
$
|
30.5
|
||||||||
EBITDA
|
$
|
24.0
|
$
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28.4
|
$
|
40.3
|
$
|
48.7
|
$
|
53.6
|
||||||||||
Stock Based Compensation
|
$
|
(2.3
|
)
|
$
|
(2.1
|
)
|
$
|
(1.9
|
)
|
$
|
(1.8
|
)
|
$
|
(1.8
|
)
|
|||||
Acquisitions & Capital Additions, interest accrual adjustment and cash funding
|
$
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(30.6
|
)
|
$
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(77.2
|
)
|
$
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(16.6
|
)
|
$
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(11.6
|
)
|
$
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(0.2
|
)
|
|||||
Loan Repayments and External Sales
|
$
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0.0
|
$
|
5.4
|
$
|
0.0
|
$
|
0.0
|
$
|
0.0
|
||||||||||
Other Non-Cash Expenses
|
$
|
3.3
|
$
|
2.1
|
$
|
1.8
|
$
|
1.8
|
$
|
1.8
|
||||||||||
Restructuring Costs & Management Fees
|
$
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43.8
|
--
|
--
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--
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--
|
||||||||||||||
Unlevered Free Cash Flow(5).
|
$
|
38.3
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$
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(43.4
|
)
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$
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23.6
|
$
|
37.1
|
$
|
53.4
|
|||||||||
Net Income
|
$
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(79.2
|
)
|
$
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(1.9
|
)
|
$
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15.3
|
$
|
23.9
|
$
|
30.5
|
||||||||
Depreciation & Amortization (including Joint Ventures)
|
$
|
19.4
|
$
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21.9
|
$
|
22.1
|
$
|
21.3
|
$
|
20.2
|
||||||||||
Total Fair Market Value Gain / (Loss) (including Joint Ventures)
|
$
|
8.1
|
$
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(19.4
|
)
|
$
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(13.7
|
)
|
$
|
(8.2
|
)
|
$
|
(7.3
|
)
|
||||||
Realized Gain
|
$
|
(0.6
|
)
|
--
|
--
|
--
|
--
|
|||||||||||||
Funds From Operations (“FFO”)(6)
|
$
|
(52.2
|
)
|
$
|
0.6
|
$
|
23.7
|
$
|
37.0
|
$
|
43.4
|
|||||||||
FFO / Share(7)
|
$
|
(2.08
|
)
|
$
|
0.02
|
$
|
0.62
|
$
|
0.93
|
$
|
1.07
|
(1) |
Dollar amounts in millions, except per share values.
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(2) |
Owned Net Operating income is defined as owned operating revenue less owned property expenses.
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(3) |
EBITDA represents the Company’s Owned Net Operating Income, plus interest income, other income and joint venture income (excluding depreciation and amortization),
less general and administrative expenses, management fees and incentive fees.
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(4) |
Net Income represents EBITDA plus total fair market value gain / (loss) (including joint ventures) plus gains from dispositions / sales, less preferred
distributions, stock based compensation, interest expense, depreciation and amortization (including joint ventures), corporate depreciation and amortization and restructuring charges.
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(5) |
Unlevered Free Cash Flow represents EBITDA less stock-based compensation expenses, acquisition and capital additions, interest accrual adjustment and cash funding,
plus loan repayments and external sales and plus other non-cash expenses.
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(6) |
FFO represents the Company’s Net Income plus depreciation and amortization (including joint ventures), less total fair market value gain / (loss) (including joint
ventures) and realized gain.
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(7) |
FFO / Share is calculated as FFO divided by the projected number of weighted average shares outstanding, as adjusted for the dilutive impact of share-based
compensation ((i) 25.1 million shares outstanding as of December 31, 2020, (ii) 31.8 million shares outstanding as of December 31, 2021, (iii) 38.1 million shares outstanding as of December 31, 2022, (iv) 39.7 million shares outstanding as
of December 31, 2023 and (v) 40.6 million shares outstanding as of December 31, 2024).
|
Projections(1)
|
||||||||||||||||||||
Twelve Months Ending December 31
|
||||||||||||||||||||
2020
|
2021
|
2022
|
2023
|
2024
|
||||||||||||||||
Net Operating Income – Owned Real Estate(2)
|
$
|
9.2
|
$
|
16.7
|
$
|
24.9
|
$
|
29.7
|
$
|
31.4
|
||||||||||
Net Operating Income – Acquired Real Estate(3)
|
$
|
0.4
|
$
|
4.9
|
$
|
13.6
|
$
|
21.7
|
$
|
26.6
|
||||||||||
Owned Real Estate Net Cash Flows (4)
|
$
|
9.6
|
$
|
21.6
|
$
|
38.5
|
$
|
51.4
|
$
|
58.0
|
||||||||||
Cash Interest Income – Development Investments(5)
|
$
|
2.9
|
$
|
1.4
|
$
|
2.1
|
$
|
4.8
|
$
|
4.6
|
||||||||||
Loan Repayments
|
$
|
11.7
|
$
|
5.4
|
$
|
0.0
|
$
|
0.0
|
$
|
0.0
|
||||||||||
Penalty Revenue
|
$
|
0.4
|
$
|
0.3
|
$
|
0.3
|
$
|
0.1
|
$
|
0.0
|
||||||||||
External Sale & Refinance Proceeds (includes exit fees)
|
$
|
16.1
|
$
|
0.0
|
$
|
0.0
|
$
|
0.0
|
$
|
0.0
|
||||||||||
Cash Fundings
|
$
|
(30.6
|
)
|
$
|
(22.5
|
)
|
$
|
(1.7
|
)
|
$
|
0.0
|
$
|
0.0
|
|||||||
Asset Buyouts – Acquisitions at REIT Level
|
$
|
(43.1
|
)
|
$
|
(41.3
|
)
|
$
|
(7.0
|
)
|
$
|
(10.5
|
)
|
$
|
0.0
|
||||||
Development Investment Net Cash Flows(6)
|
$
|
(42.5
|
)
|
$
|
(56.8
|
)
|
$
|
(6.4
|
)
|
$
|
(5.5
|
)
|
$
|
4.6
|
(1) |
Dollar amounts in millions, except per share values.
|
(2) |
Net Operating Income – Owned Real Estate represents properties owned as of June 30, 2020.
|
(3) |
Net Operating Income – Acquired Real Estate represents properties acquired subsequent to June 30, 2020.
|
(4) |
Owned Real Estate Net Cash Flows represent the net operating income for owned real estate plus the net operating income for acquired real estate.
|
(5) |
Cash Interest Income --Development Investments include all development cash flows including cash flows for properties that were acquired, sold, refinanced or held
during 2020.
|
(6) |
Development Investment Net Cash Flows represent the sum of cash interest income for development investments, loan repayments, penalty revenue, external sale and
refinance proceeds (including exit fees), cash fundings and asset buyouts.
|
JERNIGAN CAPITAL, INC.
|
|||
Date: October 16, 2020
|
By:
|
/s/ John A. Good | |
Name:
|
John A. Good | ||
Title:
|
Chief Executive Officer |
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