jcap_Ex99

Exhibit 99.1

Jernigan Capital Reports Third Quarter EPS and Adjusted EPS Above High End of Guidance Range; Tightens Full-Year EPS Guidance Range and Raises Full-Year Adjusted EPS Guidance Range

MEMPHIS, Tennessee, October 30, 2019 / Business Wire / Jernigan Capital, Inc. (NYSE: JCAP), an owner of self-storage facilities and a leading capital partner for self-storage entrepreneurs nationwide, today announced results for the quarter ended September 30, 2019.

Third Quarter Highlights include:

Earnings per share and adjusted earnings per share of $0.26 and $0.46, respectively, both above the high end of guidance ranges provided with the Company’s second quarter 2019 earnings release;

Tightened full year 2019 earnings per share guidance range to between $1.08 and $1.19 from the prior range of $0.93 to $1.34 and increased full year 2019 adjusted earnings per share guidance range to between $1.88 and $2.00 from the prior range of between $1.72 and $2.13;

Increased the number of wholly-owned self-storage facilities to 15 through developer buyouts of five self-storage facilities underlying the Company’s Miami bridge portfolio and the Company’s Jacksonville 2 development investment, as well as the acquisition of the interests in the entity that owned the property underlying the Company’s Miami construction loan;

Closed on two development investments, in Queens, New York and Nassau County, New York, with an aggregate commitment amount of $21.8 million, bringing aggregate 2019 investments to approximately $101 million, including commitments to new development and developer buyouts;

Commenced leasing of Generation V self-storage facilities underlying two development property investments located in Atlanta, Georgia and St. Paul, Minnesota in which the Company has an aggregate committed investment of $26.8 million, 49.9% profits interests and ROFRs; and

A special committee comprised entirely of independent members of the Company’s board of directors commenced discussions with JCAP Advisors, the Company’s external advisor, regarding a potential internalization transaction.

“Our third quarter results and investment activities reflect another quarter of strong execution of the Company’s business plan and further progress toward outright ownership of our outstanding portfolio of state-of-the-art Generation V self-storage properties,” stated John Good, Chief Executive Officer of Jernigan Capital, Inc. “Revenue, earnings per share and adjusted earnings per share exceeded the high end of our quarterly guidance ranges, and we posted 35% growth in total revenues compared to the third quarter of 2018. Our portfolio of self-storage facilities continues to progress well through construction and lease-up. As of quarter-end, 54 facilities, representing 71% of self-storage projects that we have financed to date, were open and operating. After a solid summer rental season, these properties have continued to lease up well into October. Occupancy is running approximately 290 basis points ahead of initial underwriting for our 46 properties that have been open for at least one leasing season.”

“We continue to see opportunities to acquire developer interests in our core development portfolio,” Mr. Good continued. “During the third quarter, we acquired the developers’ interests in seven of our investments, including the five facilities underlying the Miami bridge loan, our Jacksonville 2 project and our Miami construction loan. Year-to-date, we have made on-balance sheet purchases of our developers’ interests in eight projects and have purchased developers out of four additional projects within our Heitman joint venture. With those acquisitions, we now wholly-own, either on our balance sheet or with our venture partner, 19 state-of-the-art Generation V self-storage properties representing approximately 24% of the net rentable square feet in our overall portfolio. As the pace of acquisition opportunities accelerates, we expect to eventually wholly-own a substantial majority of the self-storage developments we have financed.”

“While we continue to strategically seek new development commitments in select markets around the United States, the sector is in the last innings of the development cycle,” added Jonathan Perry, President and Chief Investment Officer. “During the third quarter, we closed two new development investments in Queens, NY and Nassau County, NY, two submarkets that exhibit the compelling demographics that we expect will drive strong demand and excellent returns over time. With these development investment commitments and the seven acquisitions during the quarter, we have surpassed the midpoint of our full year 2019 investment guidance range.”

Full-Year 2019 Guidance

The following table reflects earnings per share and adjusted earnings per share guidance ranges 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, including interest rate levels. 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, depreciation and amortization on real estate assets, and other expenses. For more information about our calculation of adjusted earnings, see “Non-GAAP Financial Measures” below.




	Year ending
	December 31, 2019
	Low		High
Interest income from investments	$	36,405	$	36,505
Rental revenue from real estate owned		8,125		8,225
Other income		350		355
Total revenues	$	44,880	$	45,085
G&A expenses (1)		(16,910)		(16,800)
Property operating expenses (excl. depreciation and amortization)		(4,090)		(4,040)
Depreciation and amortization on real estate assets		(6,175)		(6,150)
Interest expense		(8,635)		(8,535)
JV income		470		480
Other expenses		(270)		(270)
Other interest income		35		40
Net unrealized gain on investments (2)		34,600		36,600
Net income		43,905		46,410
Net income attributable to preferred stockholders (3)		(20,495)		(20,485)
Net income attributable to common stockholders		23,410		25,925
Add: stock dividends		8,500		8,500
Add: stock-based compensation		2,155		2,150
Add: depreciation and amortization on real estate assets (4)		6,485		6,455
Add: other expenses (5)		270		270
Adjusted earnings	$	40,820	$	43,300
Earnings per share – diluted	$	1.08	$	1.19
Adjusted earnings per share – diluted	$	1.88	$	2.00
Average shares outstanding – diluted		21,700,000		21,700,000

Includes $8.3 million (low and high) of fees to Manager for the year ending December 31, 2019.

Excludes $0.3 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 year ended December 31, 2019.

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.

Includes $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 year ended December 31, 2019.

Other expenses consist of professional fees incurred with respect to ongoing discussions and negotiations related to our Management Agreement.

Full-Year Key Assumptions:

Closings of approximately $101 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) and new development property investments;

Fundings of approximately $185 million to $195 million on the Company’s closed 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 approximately $160 million.

The Company is adjusting its previously issued guidance for full year 2019. Net income attributable to common stockholders is expected to be between $1.08 and $1.19 per share from the previously estimated range of $0.93 to $1.34 per share, and adjusted earnings is expected to be between $1.88 and $2.00 per share from the previously estimated range of $1.72 to $2.13 per share.

Additionally, the Company continues to monitor its 2019 fair value guidance with updated estimates of construction progress, timing of the receipt of certificates of occupancy from its development partners and the movement of interest rates and spreads. Of the estimated $34.6 million to $36.6 million of fair value appreciation in 2019, the Company recognized $8.8 million during the first quarter, $12.0 million in the second quarter, $8.0 million in the third quarter, and expects $5.8 million to $7.8 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 and 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 under the fair value method, so acquisitions of developer interests have a potentially material effect on future fair value recognized in the Company’s financial statements. As such, the amount and exact timing of fair value recognition is subject to change.

Refer to the Company’s Third Quarter 2019 Supplemental Information Package for more information.

Conference Call and Webcast Information

The Company will host a webcast and conference call on Thursday, October 31, 2019 at 11:00 a.m. Eastern Time to discuss the financial results and recent events. A webcast will be available on the Company’s website at investors.jernigancapital.com. To listen to a live broadcast, access the site at least 15 minutes prior to the scheduled start time in order to register and download and install any necessary audio software. The replay of the webcast will be available on the Company’s website until midnight Eastern Time on Thursday, November 14, 2019.

Supplemental financial and operating information for the three and nine months ended September 30, 2019 is available on the Company’s website under Financials – Quarterly Supplemental Information.

To Participate in the Telephone Conference Call:

Dial in at least 15 minutes prior to start time.

Domestic: 1-877-407-0792

International: 1-201-689-8263

Conference Call Replay:

Domestic: 1-844-512-2921

International: 1-412-317-6671

Passcode: 13681076

About Jernigan Capital, Inc.

Jernigan Capital is a New York Stock Exchange-listed real estate investment trust (NYSE: JCAP) that provides debt and equity capital to private developers, owners and operators of self-storage facilities with a view to eventual outright ownership of facilities we finance. Our mission is to maximize shareholder value by accumulating a multi-billion dollar investment portfolio consisting of the newest, most attractive and best located self-storage facilities in the United States through a talented and experienced team demonstrating the highest levels of integrity, dedication, excellence and community.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to our full-year 2019 guidance and fair value measurements and the assumptions underlying such guidance, our ability to acquire our developers’ interests in additional properties, our management team’s views of the self-storage market generally, our ability to successfully source, structure, negotiate and close investments in and acquisitions of self-storage facilities, the market dynamics of the MSAs in which our investments are located, our ability to fund our outstanding future investment commitments, our ability to own and manage our real estate assets, the availability, terms and our rate of deployment of equity capital and our ability to increase the borrowing base and use the accordion feature of our credit facility and negotiations regarding the internalization of our advisor, which may not occur on favorable terms, or at all, and the continuance of our management agreement if internalization does not occur. The ultimate occurrence of events and results referenced in these forward-looking statements is subject to known and unknown risks and uncertainties, many of which are beyond our control. These forward-looking statements are based upon the Company's present intentions and expectations, but the events and results referenced in these statements are not guaranteed to occur. The Company undertakes no duty or responsibility to publicly update or revise any forward-looking statement to reflect future events or circumstances or to reflect the occurrence of unexpected events. Investors should not place undue reliance upon forward-looking statements. For a discussion of these and other risks facing our business, see the information under the heading “Risk Factors” in the Company’s Annual

JERNIGAN CAPITAL, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)



	As of
	September 30, 2019		December 31, 2018
	(unaudited)
Assets:
Cash and cash equivalents	$	6,961	$	8,715
Self-Storage Investment Portfolio:
Development property investments at fair value		508,887		373,564
Bridge investments at fair value		-		84,383
Self-storage real estate owned, net		232,822		96,202
Investment in and advances to self-storage real estate venture		11,027		14,155
Other loans, at cost		4,417		4,835
Deferred financing costs		4,090		4,619
Prepaid expenses and other assets		7,813		3,702
Fixed assets, net		216		233
Total assets	$	776,233	$	590,408

Liabilities:
Secured revolving credit facility	$	125,000	$	-
Term loans, net of unamortized costs		40,735		24,609
Due to Manager		2,749		3,334
Accounts payable, accrued expenses and other liabilities		5,392		2,402
Dividends payable		12,940		12,199
Total liabilities		186,816		42,544

Equity:
Series A preferred stock		128,512		122,137
Series B Cumulative preferred stock		37,298		37,401
Common stock		222		204
Additional paid-in capital		422,240		386,394
Retained earnings		1,645		1,728
Accumulated other comprehensive income (loss)		(500)		-
Total equity		589,417		547,864
Total liabilities and equity	$	776,233	$	590,408

JERNIGAN CAPITAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)

(unaudited)



	Three months ended				Nine months ended
	September 30,				September 30,
	2019		2018		2019		2018
Revenues:
Interest income from investments	$	10,216	$	8,086	$	27,578	$	19,051
Rental and other property-related income from real estate owned		1,988		970		5,075		2,398
Other revenues		45		35		312		99
Total revenues		12,249		9,091		32,965		21,548

Costs and expenses:
General and administrative expenses		2,137		1,727		6,273		5,579
Fees to Manager		2,131		1,872		6,203		4,758
Property operating expenses of real estate owned		989		473		2,538		1,204
Depreciation and amortization of real estate owned		1,372		854		3,491		2,443
Other expenses		268		-		268		290
Total costs and expenses		6,897		4,926		18,773		14,274

Operating income		5,352		4,165		14,192		7,274

Other income (expense):
Equity in earnings from unconsolidated real estate venture		165		440		407		1,425
Realized gain on investments		-		619		-		619
Net unrealized gain on investments		7,974		11,060		28,847		24,003
Interest expense		(2,546)		(467)		(5,535)		(1,521)
Other interest income		9		147		30		315
Total other income		5,602		11,799		23,749		24,841
Net income		10,954		15,964		37,941		32,115
Net income attributable to preferred stockholders		(5,157)		(4,790)		(15,283)		(12,965)
Net income attributable to common stockholders	$	5,797	$	11,174	$	22,658	$	19,150

Basic earnings per share attributable to common stockholders	$	0.26	$	0.58	$	1.06	$	1.17
Diluted earnings per share attributable to common stockholders	$	0.26	$	0.57	$	1.06	$	1.16

Dividends declared per share of common stock	$	0.35	$	0.35	$	1.05	$	1.05

JERNIGAN CAPITAL, INC.
CALCULATION OF ADJUSTED EARNINGS
(in thousands, except share and per share data)
(unaudited)



	Three months ended
	September 30, 2019		September 30, 2018
Net income attributable to common stockholders	$	5,797	$	11,174
Plus: stock dividends to preferred stockholders		2,125		2,125
Plus: stock-based compensation		549		385
Plus: depreciation and amortization on real estate assets		1,372		854
Plus: depreciation and amortization on SL1 Venture real estate assets		82		-
Plus: other expenses		268		-
Adjusted Earnings	$	10,193	$	14,538

Adjusted Earnings per share attributable to common stockholders – diluted	$	0.46	$	0.75

Weighted average shares of common stock outstanding – diluted		22,233,594		19,459,751


	Nine months ended
	September 30, 2019		September 30, 2018
Net income attributable to common stockholders	$	22,658	$	19,150
Plus: stock dividends to preferred stockholders		6,375		6,375
Plus: stock-based compensation		1,596		1,507
Plus: depreciation and amortization on real estate assets		3,491		2,443
Plus: depreciation and amortization on SL1 Venture real estate assets		219		-
Plus: other expenses		268		290
Adjusted Earnings	$	34,607	$	29,765

Adjusted Earnings per share attributable to common stockholders – diluted	$	1.62	$	1.80

Weighted average shares of common stock outstanding – diluted		21,365,239		16,540,367

JERNIGAN CAPITAL, INC.
CALCULATION OF EARNINGS PER SHARE AND ADJUSTED EARNINGS PER SHARE
(in thousands, except share and per share data)
(unaudited)



	Three months ended September 30,				Nine months ended September 30,
	2019		2018		2019		2018
Shares outstanding:
Weighted average common shares - basic		22,019,875		19,184,172		21,173,946		16,253,410
Effect of dilutive securities		213,719		275,579		191,293		286,957
Weighted average common shares, all classes		22,233,594		19,459,751		21,365,239		16,540,367

Calculation of Earnings per Share - basic
Net income	$	10,954	$	15,964	$	37,941	$	32,115
Less:
Net income allocated to preferred stockholders		5,157		4,790		15,283		12,965
Net income allocated to unvested restricted shares (1)		56		96		203		207
Net income attributable to common stockholders – two-class method	$	5,741	$	11,078	$	22,455	$	18,943

Weighted average common shares – basic		22,019,875		19,184,172		21,173,946		16,253,410
Earnings per share – basic	$	0.26	$	0.58	$	1.06	$	1.17

Calculation of Earnings per Share - diluted
Net income	$	10,954	$	15,964	$	37,941	$	32,115
Less:
Net income allocated to preferred stockholders		5,157		4,790		15,283		12,965
Net income attributable to common stockholders – two-class method	$	5,797	$	11,174	$	22,658	$	19,150

Weighted average common shares – diluted		22,233,594		19,459,751		21,365,239		16,540,367
Earnings per share – diluted	$	0.26	$	0.57	$	1.06	$	1.16

Calculation of Adjusted Earnings per Share - basic
Adjusted Earnings	$	10,193	$	14,538	$	34,607	$	29,765
Less:
Adjusted Earnings allocated to unvested restricted shares (1)		98		125		310		321
Adjusted Earnings attributable to common stockholders – two-class method	$	10,095	$	14,413	$	34,297	$	29,444

Weighted average common shares – basic		22,019,875		19,184,172		21,173,946		16,253,410
Adjusted Earnings per share – basic	$	0.46	$	0.75	$	1.62	$	1.81

Calculation of Adjusted Earnings per Share - diluted
Adjusted Earnings attributable to common stockholders – two-class method	$	10,193	$	14,538	$	34,607	$	29,765

Weighted average common shares – diluted		22,233,594		19,459,751		21,365,239		16,540,367
Adjusted Earnings per share – diluted	$	0.46	$	0.75	$	1.62	$	1.80

⁽¹⁾

Unvested restricted shares participate in dividends with common shares on a 1:1 basis and thus are considered participating securities under the two-class method for the three and nine months ended September 30, 2019 and 2018.

JERNIGAN CAPITAL, INC.
2019 GUIDANCE - RECONCILIATION OF ADJUSTED EARNINGS PER SHARE
(in thousands, except share and per share data)

(unaudited)



	Year ending December 31, 2019
	Low		High
Net income attributable to common stockholders	$	23,410	$	25,925
Plus: stock dividends to preferred stockholders		8,500		8,500
Plus: stock-based compensation		2,155		2,150
Plus: depreciation and amortization on real estate assets		6,485		6,455
Plus: other expenses		270		270
Adjusted Earnings	$	40,820	$	43,300

Net income attributable to common stockholders per weighted average share – diluted	$	1.08	$	1.19
Adjusted Earnings per weighted average share – diluted	$	1.88	$	2.00

Weighted average shares of common stock outstanding – diluted		21,700,000		21,700,000