EX-99.2 3 jcap-20190227ex992267fd6.htm EXHIBIT 99.2 jcap_Ex99_2

Exhibit 99.2

 

I:\Jernigan Capital Shared\Finance\Quarterly Close\2018\Q4 2018 Close Binder\Supplemental Package\Cover Page.png

 

 

 

 

Fourth Quarter 2018

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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

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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

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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

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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

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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

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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

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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

Picture 7

 

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

Picture 7

 

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

Picture 7

 

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

Picture 7

 

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.

 

Picture 5

 

 

Picture 4

 

Fourth Quarter 2018

Picture 7

 

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

Picture 7

 

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

Picture 7

 

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

Picture 7

 

15

 

 

Closed Investments by Geography

As of December 31, 2018

 

Picture 2

 

 

Fourth Quarter 2018

Picture 7

 

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

 

 

Picture 1

 

 

Fourth Quarter 2018

Picture 7

 

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

 

 

 

Picture 6

 

 

Fourth Quarter 2018

Picture 7

 

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

Picture 7

 

19