8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November1, 2017

Jernigan Capital, Inc.

(Exact Name of Registrant as Specified in its Charter)

Maryland	001-36892	47-1978772
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

6410 Poplar Avenue, Suite 650	38119
(Address of Principal Executive Offices)	(Zip Code)

(901) 567-9510

(Registrant’s telephone number, including area code)

N/A

(Former Name or Former Address, if Changed Since Last Report)

          Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

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.   ☒

Item 2.02. Results of Operations and Financial Condition.

On November1, 2017, Jernigan Capital, Inc. (“the Company”) issued a press release announcing its financial position as of September 30, 2017, results of operations for the three and nine month periods ended September 30, 2017, and other related information. Also on November1, 2017, the Company made available on its website at www.jernigancapital.com certain supplemental information concerning the Company’s financial results and operations for the three and nine months ended September 30, 2017.  Copies of such press release and supplemental information are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K and are incorporated herein by reference.

In accordance with General Instructions B.2 and B.6 of Form 8-K, the information included in this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing made by the Company under the Exchange Act or Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

Item 7.01. Regulation FD Disclosure.

The disclosure contained in Item 2.02 is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Press release dated November 1, 2017
99.2	Jernigan Capital, Inc. Third Quarter 2017 Supplemental Information

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release dated November 1, 2017.
99.2	Jernigan Capital, Inc. Third Quarter 2017 Supplemental Information.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: November 1, 2017
	Jernigan Capital, Inc.
	By:	/s/ John A. Good
		Name:	John A. Good
		Title:	President and Chief Operating Officer

EX-99.1

Exhibit 99.1

JERNIGAN CAPITAL ANNOUNCES $0.29 EARNINGS PER SHARE AND

$0.35 ADJUSTED EARNINGS PER SHARE FOR THIRD QUARTER 2017

MEMPHIS, Tennessee, November 1, 2017 / Business Wire / Jernigan Capital, Inc. (NYSE: JCAP), a leading capital partner for self-storage entrepreneurs nationwide, today announced results for the quarter ended September 30, 2017, and provided fourth quarter and updated full-year 2017 guidance along with preliminary expectations for 2018.

Highlights for the quarter include:

▪ Reported earnings per share and adjusted earnings per share of $0.29 and $0.35, respectively;

▪ Closed $70.5 million of new on-balance sheet development investments through quarter end ($330.3 million year-to-date through November 1, 2017);

▪ Acquired 100% of developer’s interests in self-storage facility in Orlando MSA;

▪ Achieved certificates of occupancy for five new self-storage facilities and stabilized physical occupancy at greater than 85% at two facilities; and

▪ Obtained $100 million revolving credit facility with an accordion feature permitting expansion up to $200 million.

“We are very pleased with our third quarter and our performance through the first nine months of the year,” Dean Jernigan, Chairman and Chief Executive Officer of Jernigan Capital, Inc. stated. “Our developers continue to find compelling self-storage sites notwithstanding fears of new supply, and our projects that have opened for business continue to track at or above our underwritten performance. In addition, we experienced several milestones this quarter: two self-storage facilities reached underwritten stabilized occupancy levels more than eighteen months ahead of schedule; we purchased our developer partner’s interests in the Ocoee, Florida facility, resulting in our outright ownership of a developed self-storage facility for the first time; four of the 11 facilities in our Heitman joint venture opened for business and have shown strong leasing trends since opening; and we completed an exhaustive study in conjunction with independent third party experts on new supply that we believe provides compelling facts that dispel the supply misperceptions that have pervaded our sector for several quarters. These milestones and strong quarterly results are the direct result of the hard work and dedication of the JCAP team and our development partners, and we are very excited about the growth of the business as we close out 2017 and look ahead to 2018.”

John Good, President and Chief Operating Officer of Jernigan Capital added, “We delivered exceptional growth this quarter, with total revenues and operating income increasing nearly 98% and 486%, respectively, over the third quarter of 2016. These results highlight the effectiveness of our business model and the scalability of our platform. We expect to exceed our initial investment closings guidance of $375 million for 2017.We are currently rolling out a new bridge loan product that we believe will drive significant incremental growth and profitability for the Company and provide us with a pipeline of additional off-market opportunities to acquire well-located latest generation self-storage facilities. This new product will leverage our expertise gained through reviewing more than $8 billion of opportunities over the past three years, our reputation as a leading capital provider to the self-storage sector and our long-standing network of contacts within the sector.  From a capital perspective we now have several attractive capital sources that provide us with the flexibility we need to fund the business. As we look forward, we expect 2018 to produce continued strong asset revenue growth, modest expense growth and substantial fair value gains as 2016 and 2017 development projects are completed and enter lease-up, resulting in additional significant returns to shareholders.”

Financial Highlights

Net income attributable to common stockholders for the three months ended September 30, 2017 was $4.1 million, or $0.29 per share, and adjusted earnings were $5.0 million, or $0.35 per share. Net income attributable to common stockholders for the nine months ended September 30, 2017 was $10.4 million, or $0.94 per share, and adjusted earnings were $12.4 million, or $1.12 per share.

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Total revenues for the three and nine months ended September 30, 2017 were $3.4 million and $8.3 million, respectively, representing increases of $1.7 million, or 97.9%, and $3.9 million, or 88.9%, over revenues for the comparable periods in 2016. General and administrative expenses decreased 5.3% for the three months and increased 5.7% for the nine months ended September 30, 2017, compared to general and administrative expenses in the same periods in 2016.

General and administrative expenses and stock-based compensation expense (“SBE”), for the three and nine months ended September 30, 2017 and 2016 were as follows (dollars in thousands):

	Three months ended September 30,
	2017		2016		% inc (dec)
General and administrative expenses, excluding SBE	$	1,090	$	1,122	(2.9)	%
Plus: SBE		296		341	(13.2)	%
General and administrative expenses	$	1,386	$	1,463	(5.3)	%

	Nine months ended September 30,
	2017		2016		% inc (dec)
General and administrative expenses, excluding SBE	$	3,313	$	3,274	1.2	%
Plus: SBE		1,023		828	23.6	%
General and administrative expenses	$	4,336	$	4,102	5.7	%

The increase in SBE for the nine months ended September 30, 2017 was primarily due to additional restricted stock grants to certain officers and employees of the Company’s external manager during the second quarter of 2017.  

Net income attributable to common stockholders and adjusted earnings for the three and nine months ended September 30, 2017 also include increases in fair value of investments of $3.4 million and $9.1 million, respectively, compared to increases of $4.9 million and $14.2 million for the three and nine months ended September 30, 2016, respectively. Results reflect the impact of the limited number of on-balance sheet closings in 2016 resulting in modest fair value adjustments in 2017 on the 2016 investments.

Capital Markets Activities

On July 25, 2017, the Company entered into a $100 million senior secured revolving credit facility, which has an accordion feature permitting expansion up to $200 million, subject to syndication. The current borrowing capacity under the credit facility is $33.3 million; however, the Company’s development property investments are eligible to be added to the borrowing base once they receive certificates of occupancy. Based on the Company’s estimate of certificates of occupancy expected to be received between now and the end of 2018, the Company anticipates a borrowing base sufficient to secure the full $200 million by December 31, 2018.

On October 26, 2017, the Company issued $10.0 million of its Series A Preferred Stock.

Dividends

On August 1, 2017, the Company declared cash and stock dividends on its Series A Preferred Stock. The cash dividend of $0.2 million was paid on October 13, 2017. A stock dividend of 6,703 shares of common stock was issued on October 13, 2017 for an aggregate value of $0.1 million pursuant to the terms of the Stock Purchase Agreement.

Additionally, on August 1, 2017, the Company declared a dividend of $0.35 per common share. The dividend was paid on October 13, 2017 to common shareholders of record on October 2, 2017.

Fourth Quarter and Full-Year 2017 Guidance

As the Company previously announced, one of its development investments, a self-storage facility under construction in Jacksonville, sustained wind damage from Hurricane Irma. In addition, its planned development facility in Houston experienced a significant delay in permitting and the beginning of construction due to Hurricane Harvey. As a result, a significant portion of the Company’s anticipated increase in fair value during the fourth quarter of 2017 is now expected to shift to the first and second quarters of 2018. This shift in timing has the effect of reducing the Company’s prior full-year

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guidance for change in fair value of investments by approximately $5.8 million on the low side and approximately $8.0 million on the high side, with a corresponding decrease in net income and adjusted earnings. The amount of the fourth quarter decrease in estimated change in fair value is captured as corresponding increases in estimated change in fair value in the 2018 guidance presented below.

The following tables reflect earnings per share and adjusted earnings per share guidance for the three months ending December 31, 2017 and updated guidance, reflecting the effect of the timing change caused by the hurricanes discussed above, for the full-year 2017 as compared to the full-year 2017 guidance previously provided. Such guidance is based on management's current expectations of Company investment activity (including fair value appreciation), the self-storage market, 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 payable to preferred stockholders, stock-based compensation expense, depreciation and amortization on real estate assets, and loss on modification of debt.

	Dollars in thousands,
	except share and per share data
	Three months ending
	December 31, 2017
	Low		High
Interest income and other revenues	$	3,500	$	3,610
Rental revenue from real estate owned		160		200
JV income		400		450
Total revenues and JV income	$	4,060	$	4,260
G&A expenses (1)		(2,840)		(2,730)
Property operating expenses (excl. depreciation and amortization)		(120)		(100)
Depreciation and amortization on real estate assets		(260)		(240)
Interest expense		(310)		(290)
Other interest income		100		110
Change in fair value of investments (2)		1,350		1,650
Loss on modification of debt		-		-
Net income		1,980		2,660
Net income attributable to preferred stockholders (3)		(480)		(430)
Net income attributable to common stockholders		1,500		2,230
Add: stock dividends		30		30
Add: stock-based compensation		420		400
Add: depreciation and amortization on real estate assets		260		240
Add: loss on modification of debt		-		-
Adjusted earnings	$	2,210	$	2,900
Earnings per share – diluted	$	0.10	$	0.16
Adjusted earnings per share - diluted	$	0.15	$	0.20
Average shares outstanding - diluted		14,300,000		14,300,000

(1)	Includes $1.1 million (low and high) of management fees for the three months ending December 31, 2017.
(2)	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 three months ending December 31, 2017.
(3)	Represents both cash dividends and stock dividends estimated with respect to outstanding shares of Series A Preferred Stock.

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	Dollars in thousands,
	except share and per share data
	Previous guidance for year ending				Updated guidance for year ending
	December 31, 2017				December 31, 2017				Change
	Low		High		Low		High		Low		High
Interest income and other revenues	$	11,180	$	11,400	$	11,430	$	11,540	$	250	$	140
Rental revenue from real estate owned		390		420		490		530		100		110
JV income		1,900		2,125		2,150		2,200		250		75
Total revenues and JV income	$	13,470	$	13,945	$	14,070	$	14,270	$	600	$	325
G&A expenses (1)		(10,070)		(9,720)		(9,550)		(9,440)		520		280
Property operating expenses (excl. depreciation and amortization) (2)		(200)		(180)		(310)		(290)		(110)		(110)
Depreciation and amortization on real estate assets (2)		(155)		(135)		(490)		(470)		(335)		(335)
Interest expense		(1,200)		(1,075)		(1,070)		(1,050)		130		25
Other interest income		650		675		580		590		(70)		(85)
Change in fair value of investments (3)		16,250		18,750		10,420		10,720		(5,830)		(8,030)
Loss on modification of debt		-		-		(235)		(235)		(235)		(235)
Net income		18,745		22,260		13,415		14,095		(5,330)		(8,165)
Net income attributable to preferred stockholders (4)		(1,800)		(1,700)		(1,515)		(1,465)		285		235
Net income attributable to common stockholders		16,945		20,560		11,900		12,630		(5,045)		(7,930)
Add: stock dividends		475		475		535		535		60		60
Add: stock-based compensation		1,475		1,450		1,445		1,425		(30)		(25)
Add: depreciation and amortization on real estate assets		155		135		490		470		335		335
Add: loss on modification of debt		-		-		235		235		235		235
Adjusted earnings	$	19,050	$	22,620	$	14,605	$	15,295	$	(4,445)	$	(7,325)
Earnings per share – diluted	$	1.41	$	1.71	$	1.00	$	1.06	$	(0.41)	$	(0.65)
Adjusted earnings per share - diluted	$	1.58	$	1.88	$	1.22	$	1.28	$	(0.36)	$	(0.60)
Average shares outstanding - diluted		12,050,000		12,050,000		11,950,000		11,950,000		100,000		100,000

(1)	Includes $3.5 million (low and high) and $3.7 million (low) / $3.6 million (high) of management fees for updated guidance and previous guidance for the year ending December 31, 2017, respectively.
(2)	Adjusted guidance to consider our purchase of 100% of developer’s interests in self-storage facility in Orlando MSA.
(3)	Excludes $1.3 million (low and high) and $1.4 million (low) / $1.6 million (high) of unrealized appreciation in fair value of investments from the real estate venture which is included in JV income for updated guidance and previous guidance for the year ending December 31, 2017, respectively.
(4)	Represents both cash dividends and stock dividends estimated with respect to outstanding shares of Series A Preferred Stock.

The guidance above is based on the following key assumptions regarding the Company’s business activities in the fourth quarter of 2017:

▪ projected closings on $90 million to $100 million of new development property investments with a profits interest for the fourth quarter of 2017 ($395 million to $405 million for the full-year);

▪ fundings of approximately $35 million to $40 million on the Company’s investment commitments during the fourth quarter ($155 million to $160 million for the full-year);

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▪ anticipated proceeds of $30 million from the issuance of Series A Preferred Stock during the fourth quarter of 2017, which includes the issuance of $10 million of Series A Preferred Stock on October 26, 2017; and

▪ no change in the key assumptions used to value the Company’s investments.

Over 75% of the development property investment commitments closed by the Company in 2016 were made through the Heitman joint venture (“JV”). The Company resumed closing on-balance sheet investments in late 2016. The 2017 guidance reflects the impact of the limited number of on-balance sheet closings in 2016 resulting in modest fair value adjustments in 2017 on the 2016 investments. The Company expects that the substantial increase in on-balance sheet investment activity in 2017 will result in significant increases in interest income and fair value appreciation in 2018.

Preliminary Full-Year 2018 Guidance

The following table reflects preliminary guidance for revenues, JV income, G&A expenses, and fair value appreciation for the full-year 2018. Such guidance is based on management's current expectations of Company investment activity (including fair value appreciation), the operational and new supply dynamics of the self-storage markets in which the Company has invested, and overall economic conditions. 

	Dollars in thousands
	Year ending
	December 31, 2018
	Low		High
Interest income from investments	$	23,000	$	25,000
Rental and other property-related income from real estate owned		900		1,000
Other income		80		100
Total revenues	$	23,980	$	26,100
JV income		1,400		1,900
G&A expenses		15,000		13,500
Change in fair value of investments(1)		46,000		56,000

(1) Excludes $0.8 million (low) and $1.2 million (high) of unrealized appreciation in fair value of investments from the real estate venture which is included in JV income.

The guidance above is based on the following key assumptions regarding the Company’s business activities in the year ending December 31, 2018:

▪ projected closings on $200 million to $230 million of new development property investments with a profits interest in 2018;

▪ estimated fundings of approximately $260 million to $300 million on the Company’s closed and projected investment commitments in 2018(1);

▪ increases in general and administrative expenses largely due to anticipated increases in the Company’s management fees as equity capitalization increases;

▪ no  significant change in the Company’s business model; and

▪ no  additional purchases of developers’ interests.

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(1) At the time of Certificate of Occupancy of each development project financed by the Company, the amount of the Company’s commitment that is actually funded generally ranges from 88% to 90% of the Company’s total commitment, with the balance of such commitment held to fund interest payments and operating reserves during the initial 18 to 24 months lease-up of the project. The amount of estimated fundings reflect this investment methodology.

Conference Call and Webcast Information

The Company will host a webcast and conference call on Thursday, November 2, 2017 at 10:00 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 Thursday, November 16, 2017.

Supplemental financial and operating information as of and for the three and nine months ended September 30, 2017 is available on the Company’s website under Investor Relations – Financial Information – 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: 13669911

The replay can be accessed until midnight Eastern Time on November 16, 2017.

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About Jernigan Capital, Inc.

Jernigan Capital, Inc. 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. Our mission is to be the preeminent capital partner for self-storage entrepreneurs nationwide by offering creative solutions through an experienced team demonstrating the highest levels of integrity, dedication, excellence and community, while maximizing shareholder value. The Jernigan Capital team has extensive experience in over 100 U.S. markets—from acquiring and managing self-storage properties to new self-storage development—providing JCAP with knowledge unmatched by any lender, broker or advisor to the sector. Jernigan Capital is the only source of construction and development capital focused solely on the self-storage sector.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws, including statements regarding our future performance, obtaining certificates of occupancy at certain facilities in which we invest, the future availability for borrowings under our credit facility (including borrowing base capacities and the availability of the accordion amount), our fourth quarter 2017 earnings guidance and full-year 2017 updated earnings guidance, our preliminary full-year 2018 earnings guidance, including related key assumptions, future profits from investments, our anticipated loan closings, our access to capital, and our ability to fund our existing loan commitments. 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. 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 our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) and our other filings with the SEC from time to time, which are accessible on the SEC’s website at www.sec.gov.

Non-GAAP Financial Measures

Adjusted Earnings is a non-GAAP measure and is defined as net income attributable to common stockholders plus stock dividends payable to preferred stockholders, stock-based compensation expense, depreciation and amortization on real estate assets, loss on modification of debt, transaction and other expenses, restructuring costs, and deferred termination fee to manager. Management uses Adjusted Earnings and Adjusted Earnings per 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.”

Contact:

Jernigan Capital, Inc.

Investor Relations:

(901) 567-9580

Investorrelations@jerningancapital.com

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JERNIGAN CAPITAL, INC.

CONSOLIDATED BALANCE SHEETS

	As of
	September 30, 2017		December 31, 2016
	(unaudited)
Assets:
Cash and cash equivalents	$	54,999	$	67,373
Development property investments at fair value		188,540		95,102
Operating property loans at fair value		5,990		9,905
Investment in and advances to real estate venture		12,573		5,373
Self-storage real estate owned, net		15,594		-
Other loans, at cost		1,754		11,752
Deferred costs		3,813		2,207
Prepaid expenses and other assets		734		868
Fixed assets, net		196		199
Total assets	$	284,193	$	192,779
Liabilities:
Senior loan participations	$	668	$	18,582
Secured revolving credit facility		-		-
Due to Manager		1,438		1,008
Accounts payable, accrued expenses and other liabilities		1,035		697
Dividends payable		5,293		4,130
Total liabilities		8,434		24,417
Equity:
Jernigan Capital, Inc. stockholders’ equity:
Cumulative preferred stock		9,445		9,448
Common stock		142		90
Additional paid-in capital		272,726		162,664
Accumulated deficit		(6,554)		(3,840)
Total equity		275,759		168,362
Total liabilities and equity	$	284,193	$	192,779

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JERNIGAN CAPITAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

	Three months ended				Nine months ended
	September 30,				September 30,
	2017		2016		2017		2016
Revenues:
Interest income from investments	$	3,173	$	1,698	$	7,759	$	4,374
Rental and other property-related income from real estate owned		160		-		328		-
Other revenues		28		-		174		-
Total revenues		3,361		1,698		8,261		4,374
Costs and expenses:
General and administrative expenses		1,386		1,463		4,336		4,102
Management fees to Manager		1,036		402		2,373		1,218
Property operating expenses of real estate owned		114		-		188		-
Depreciation and amortization of real estate owned		172		-		233		-
Transaction and other expenses		-		2		-		2,129
Restructuring costs		-		-		-		54
Deferred termination fee to Manager		-		-		-		239
Total costs and expenses		2,708		1,867		7,130		7,742
Operating income (loss)		653		(169)		1,131		(3,368)
Other income (expense):
Equity in earnings from unconsolidated real estate venture		730		436		1,747		854
Change in fair value of investments		3,384		4,867		9,066		14,185
Interest expense		(323)		(148)		(757)		(186)
Loss on modification of debt		(232)		-		(232)		-
Other interest income		245		8		479		43
Total other income		3,804		5,163		10,303		14,896
Net income		4,457		4,994		11,434		11,528
Net income attributable to preferred stockholders		(310)		-		(1,033)		-
Net income attributable to common stockholders	$	4,147	$	4,994	$	10,401	$	11,528
Basic earnings per share attributable to common stockholders	$	0.29	$	0.84	$	0.94	$	1.90
Diluted earnings per share attributable to common stockholders	$	0.29	$	0.84	$	0.94	$	1.90
Dividends declared per share of common stock	$	0.35	$	0.35	$	1.05	$	1.05

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JERNIGAN CAPITAL, INC.

CALCULATION OF ADJUSTED EARNINGS

(in thousands, except share and per share data)

(unaudited)

	Three months ended
	September 30, 2017		September 30, 2016
Net income attributable to common stockholders	$	4,147	$	4,994
Plus: stock dividends payable to preferred stockholders		132		-
Plus: stock-based compensation		296		341
Plus: depreciation and amortization on real estate assets		172		-
Plus: loss on modification of debt		232		-
Plus: transaction and other expenses		-		2
Adjusted Earnings	$	4,979	$	5,337
Adjusted Earnings per share attributable to common stockholders - diluted	$	0.35	$	0.90
Weighted average shares of common stock outstanding - diluted		14,244,345		5,963,093

	Nine months ended
	September 30, 2017		September 30, 2016
Net income attributable to common stockholders	$	10,401	$	11,528
Plus: stock dividends payable to preferred stockholders		503		-
Plus: stock-based compensation		1,023		828
Plus: depreciation and amortization on real estate assets		233		-
Plus: loss on modification of debt		232		-
Plus: transaction and other expenses		-		2,129
Plus: restructuring costs		-		54
Plus: deferred termination fee to Manager		-		239
Adjusted Earnings	$	12,392	$	14,778
Adjusted Earnings per share attributable to common stockholders - diluted	$	1.12	$	2.43
Weighted average shares of common stock outstanding - diluted		11,108,540		6,076,186

10

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,
	2017		2016		2017		2016
Shares outstanding:
Weighted average common shares - basic		14,042,350		5,831,135		10,935,776		5,926,215
Effect of dilutive securities		201,995		131,958		172,764		149,971
Weighted average common shares, all classes		14,244,345		5,963,093		11,108,540		6,076,186
Calculation of Earnings per Share - basic
Net income	$	4,457	$	4,994	$	11,434	$	11,528
Less:
Net income allocated to preferred stockholders		310		-		1,033		-
Net income allocated to unvested restricted shares (1)		57		111		156		285
Net income attributable to common shareholders - two-class method	$	4,090	$	4,883	$	10,245	$	11,243
Weighted average common shares - basic		14,042,350		5,831,135		10,935,776		5,926,215
Earnings per share - basic	$	0.29	$	0.84	$	0.94	$	1.90
Calculation of Earnings per Share - diluted
Net income	$	4,457	$	4,994	$	11,434	$	11,528
Less:
Net income allocated to preferred stockholders		310		-		1,033		-
Net income attributable to common shareholders - two-class method	$	4,147	$	4,994	$	10,401	$	11,528
Weighted average common shares - diluted		14,244,345		5,963,093		11,108,540		6,076,186
Earnings per share - diluted	$	0.29	$	0.84	$	0.94	$	1.90
Calculation of Adjusted Earnings per Share - basic
Adjusted Earnings	$	4,979	$	5,337	$	12,392	$	14,778
Less:
Adjusted Earnings allocated to unvested restricted shares (1)		68		118		185		365
Adjusted Earnings attributable to common stockholders - two-class method	$	4,911	$	5,219	$	12,207	$	14,413
Weighted average common shares - basic		14,042,350		5,831,135		10,935,776		5,926,215
Adjusted Earnings per share - basic	$	0.35	$	0.90	$	1.12	$	2.43
Calculation of Adjusted Earnings per Share - diluted
Adjusted Earnings attributable to common stockholders - two-class method	$	4,979	$	5,337	$	12,392	$	14,778
Weighted average common shares - diluted		14,244,345		5,963,093		11,108,540		6,076,186
Adjusted Earnings per share - diluted	$	0.35	$	0.90	$	1.12	$	2.43

(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, 2017 and 2016.

11

JERNIGAN CAPITAL, INC.

2017 GUIDANCE - RECONCILIATION OF ADJUSTED EARNINGS

(in thousands, except share and per share data)

(unaudited)

	Quarter ending December 31, 2017
	Low		High
Net income attributable to common stockholders	$	1,500	$	2,230
Plus: stock dividends payable to preferred stockholders		30		30
Plus: stock-based compensation		420		400
Plus: depreciation and amortization on real estate assets		260		240
Adjusted Earnings	$	2,210	$	2,900
Net income attributable to common stockholders per weighted average share	$	0.10	$	0.16
Adjusted Earnings per weighted average share	$	0.15	$	0.20
Weighted average shares of common stock outstanding		14,300,000		14,300,000

	Year ending December 31, 2017
	Low		High
Net income attributable to common stockholders	$	11,900	$	12,630
Plus: stock dividends payable to preferred stockholders		535		535
Plus: stock-based compensation		1,445		1,425
Plus: depreciation and amortization on real estate assets		490		470
Plus: loss on modification of debt		235		235
Adjusted Earnings	$	14,605	$	15,295
Net income attributable to common stockholders per weighted average share	$	1.00	$	1.06
Adjusted Earnings per weighted average share	$	1.22	$	1.28
Weighted average shares of common stock outstanding		11,950,000		11,950,000

12

EX-99.2

Exhibit 99.2

Table of Contents

Legal Notices
Earnings Release	4
Financial Highlights – Trailing Five Quarters	9
Consolidated Balance Sheets – Trailing Five Quarters	10
Consolidated Statements of Operations	11
Calculation of Adjusted Earnings and Reconciliation to Net Income Attributable to Common Stockholders – Trailing Five Quarters	12
Schedules of Development Projects	13
Closed Investments by Geography	16
Investment Pipeline by Geography	17
Company Information	18

Third Quarter 20172

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 fourth quarter 2017 earnings guidance, updated full-year 2017 earnings guidance and preliminary 2018 earnings guidance, 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 in other documents that we file from time to time with the SEC, which factors include, without limitation, the following:

	our ability to successfully source, structure, negotiate and close investments in 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 obtain certificates of occupancy at the facilities 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; 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 payable to preferred stockholders, stock-based compensation expense, depreciation and amortization on real estate assets, loss on modification of debt, transaction and other expenses, restructuring costs and deferred termination fee to manager. 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.”

Third Quarter 20173

Press Release – November 2017

JERNIGAN CAPITAL ANNOUNCES $0.29 EARNINGS PER SHARE AND

$0.35 ADJUSTED EARNINGS PER SHARE FOR THIRD QUARTER 2017

MEMPHIS, Tennessee, November 1, 2017 / Business Wire / Jernigan Capital, Inc. (NYSE: JCAP), a leading capital partner for self-storage entrepreneurs nationwide, today announced results for the quarter ended September 30, 2017, and provided fourth quarter and updated full-year 2017 guidance along with preliminary expectations for 2018.

Highlights for the quarter include:

▪ Reported earnings per share and adjusted earnings per share of $0.29 and $0.35, respectively;

▪ Closed $70.5 million of new on-balance sheet development investments through quarter end ($330.3 million year-to-date through November 1, 2017);

▪ Acquired 100% of developer’s interests in self-storage facility in Orlando MSA;

▪ Achieved certificates of occupancy for five new self-storage facilities and stabilized physical occupancy at greater than 85% at two facilities; and

▪ Obtained $100 million revolving credit facility with an accordion feature permitting expansion up to $200 million.

“We are very pleased with our third quarter and our performance through the first nine months of the year,” Dean Jernigan, Chairman and Chief Executive Officer of Jernigan Capital, Inc. stated. “Our developers continue to find compelling self-storage sites notwithstanding fears of new supply, and our projects that have opened for business continue to track at or above our underwritten performance. In addition, we experienced several milestones this quarter: two self-storage facilities reached underwritten stabilized occupancy levels more than eighteen months ahead of schedule; we purchased our developer partner’s interests in the Ocoee, Florida facility, resulting in our outright ownership of a developed self-storage facility for the first time; four of the 11 facilities in our Heitman joint venture opened for business and have shown strong leasing trends since opening; and we completed an exhaustive study in conjunction with independent third party experts on new supply that we believe provides compelling facts that dispel the supply misperceptions that have pervaded our sector for several quarters. These milestones and strong quarterly results are the direct result of the hard work and dedication of the JCAP team and our development partners, and we are very excited about the growth of the business as we close out 2017 and look ahead to 2018.”

John Good, President and Chief Operating Officer of Jernigan Capital added, “We delivered exceptional growth this quarter, with total revenues and operating income increasing nearly 98% and 486%, respectively, over the third quarter of 2016. These results highlight the effectiveness of our business model and the scalability of our platform. We expect to exceed our initial investment closings guidance of $375 million for 2017. We are currently rolling out a new bridge loan product that we believe will drive significant incremental growth and profitability for the Company and provide us with a pipeline of additional off-market opportunities to acquire well-located latest generation self-storage facilities. This new product will leverage our expertise gained through reviewing more than $8 billion of opportunities over the past three years, our reputation as a leading capital provider to the self-storage sector and our long-standing network of contacts within the sector. From a capital perspective we now have several attractive capital sources that provide us with the flexibility we need to fund the business. As we look forward, we expect 2018 to produce continued strong asset revenue growth, modest expense growth and substantial fair value gains as 2016 and 2017 development projects are completed and enter lease-up, resulting in additional significant returns to shareholders.”

Financial Highlights

Net income attributable to common stockholders for the three months ended September 30, 2017 was $4.1 million, or $0.29 per share, and adjusted earnings were $5.0 million, or $0.35 per share. Net income attributable to common stockholders for the nine months ended September 30, 2017 was $10.4 million, or $0.94 per share, and adjusted earnings were $12.4 million, or $1.12 per share.

Total revenues for the three and nine months ended September 30, 2017 were $3.4 million and $8.3 million, respectively, representing increases of $1.7 million, or 97.9%, and $3.9 million, or 88.9%, over revenues for the comparable periods in 2016. General and administrative expenses decreased 5.3% for the three months and increased 5.7% for the nine months ended September 30, 2017, compared to general and administrative expenses in the same periods in 2016.

Third Quarter 20174

General and administrative expenses and stock-based compensation expense (“SBE”), for the three and nine months ended September 30, 2017 and 2016 were as follows (dollars in thousands):

	Three months ended September 30,
	2017		2016		% inc (dec)
General and administrative expenses, excluding SBE	$	1,090	$	1,122	(2.9)	%
Plus: SBE		296		341	(13.2)	%
General and administrative expenses	$	1,386	$	1,463	(5.3)	%

	Nine months ended September 30,
	2017		2016		% inc (dec)
General and administrative expenses, excluding SBE	$	3,313	$	3,274	1.2	%
Plus: SBE		1,023		828	23.6	%
General and administrative expenses	$	4,336	$	4,102	5.7	%

The increase in SBE for the nine months ended September 30, 2017 was primarily due to additional restricted stock grants to certain officers and employees of the Company’s external manager during the second quarter of 2017.

Net income attributable to common stockholders and adjusted earnings for the three and nine months ended September 30, 2017 also include increases in fair value of investments of $3.4 million and $9.1 million, respectively, compared to increases of $4.9 million and $14.2 million for the three and nine months ended September 30, 2016, respectively. Results reflect the impact of the limited number of on-balance sheet closings in 2016 resulting in modest fair value adjustments in 2017 on the 2016 investments.

Capital Markets Activities

On July 25, 2017, the Company entered into a $100 million senior secured revolving credit facility, which has an accordion feature permitting expansion up to $200 million, subject to syndication. The current borrowing capacity under the credit facility is $33.3 million; however, the Company’s development property investments are eligible to be added to the borrowing base once they receive certificates of occupancy. Based on the Company’s estimate of certificates of occupancy expected to be received between now and the end of 2018, the Company anticipates a borrowing base sufficient to secure the full $200 million by December 31, 2018.

On October 26, 2017, the Company issued $10.0 million of its Series A Preferred Stock.

Dividends

On August 1, 2017, the Company declared cash and stock dividends on its Series A Preferred Stock. The cash dividend of $0.2 million was paid on October 13, 2017. A stock dividend of 6,703 shares of common stock was issued on October 13, 2017 for an aggregate value of $0.1 million pursuant to the terms of the Stock Purchase Agreement.

Additionally, on August 1, 2017, the Company declared a dividend of $0.35 per common share. The dividend was paid on October 13, 2017 to common shareholders of record on October 2, 2017.

Fourth Quarter and Full-Year 2017 Guidance

As the Company previously announced, one of its development investments, a self-storage facility under construction in Jacksonville, sustained wind damage from Hurricane Irma. In addition, its planned development facility in Houston experienced a significant delay in permitting and the beginning of construction due to Hurricane Harvey. As a result, a significant portion of the Company’s anticipated increase in fair value during the fourth quarter of 2017 is now expected to shift to the first and second quarters of 2018. This shift in timing has the effect of reducing the Company’s prior full-year guidance for change in fair value of investments by approximately $5.8 million on the low side and approximately $8.0 million on the high side, with a corresponding decrease in net income and adjusted earnings. The amount of the fourth quarter decrease in estimated change in fair value is captured as corresponding increases in estimated change in fair value in the 2018 guidance presented below.

The following tables reflect earnings per share and adjusted earnings per share guidance for the three months ending December 31, 2017 and updated guidance, reflecting the effect of the timing change caused by the hurricanes discussed above, for the full-year 2017 as compared to the full-year 2017 guidance previously provided. Such guidance is based on management's current expectations of Company investment activity (including fair value appreciation), the self-storage market, and overall economic conditions. Adjusted earnings is a performance measure that

Third Quarter 20175

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 payable to preferred stockholders, stock-based compensation expense, depreciation and amortization on real estate assets, and loss on modification of debt.

	Dollars in thousands,
	except share and per share data
	Three months ending
	December 31, 2017
	Low		High
Interest income and other revenues	$	3,500	$	3,610
Rental revenue from real estate owned		160		200
JV income		400		450
Total revenues and JV income	$	4,060	$	4,260
G&A expenses (1)		(2,840)		(2,730)
Property operating expenses (excl. depreciation and amortization)		(120)		(100)
Depreciation and amortization on real estate assets		(260)		(240)
Interest expense		(310)		(290)
Other interest income		100		110
Change in fair value of investments (2)		1,350		1,650
Loss on modification of debt		-		-
Net income		1,980		2,660
Net income attributable to preferred stockholders (3)		(480)		(430)
Net income attributable to common stockholders		1,500		2,230
Add: stock dividends		30		30
Add: stock-based compensation		420		400
Add: depreciation and amortization on real estate assets		260		240
Add: loss on modification of debt		-		-
Adjusted earnings	$	2,210	$	2,900
Earnings per share – diluted	$	0.10	$	0.16
Adjusted earnings per share - diluted	$	0.15	$	0.20
Average shares outstanding - diluted		14,300,000		14,300,000

(1)	Includes $1.1 million (low and high) of management fees for the three months ending December 31, 2017.
(2)	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 three months ending December 31, 2017.
(3)	Represents both cash dividends and stock dividends estimated with respect to outstanding shares of Series A Preferred Stock.

Third Quarter 20176

	Dollars in thousands,
	except share and per share data
	Previous guidance for year ending				Updated guidance for year ending
	December 31, 2017				December 31, 2017				Change
	Low		High		Low		High		Low		High
Interest income and other revenues	$	11,180	$	11,400	$	11,430	$	11,540	$	250	$	140
Rental revenue from real estate owned		390		420		490		530		100		110
JV income		1,900		2,125		2,150		2,200		250		75
Total revenues and JV income	$	13,470	$	13,945	$	14,070	$	14,270	$	600	$	325
G&A expenses (1)		(10,070)		(9,720)		(9,550)		(9,440)		520		280
Property operating expenses (excl. depreciation and amortization) (2)		(200)		(180)		(310)		(290)		(110)		(110)
Depreciation and amortization on real estate assets (2)		(155)		(135)		(490)		(470)		(335)		(335)
Interest expense		(1,200)		(1,075)		(1,070)		(1,050)		130		25
Other interest income		650		675		580		590		(70)		(85)
Change in fair value of investments (3)		16,250		18,750		10,420		10,720		(5,830)		(8,030)
Loss on modification of debt		-		-		(235)		(235)		(235)		(235)
Net income		18,745		22,260		13,415		14,095		(5,330)		(8,165)
Net income attributable to preferred stockholders (4)		(1,800)		(1,700)		(1,515)		(1,465)		285		235
Net income attributable to common stockholders		16,945		20,560		11,900		12,630		(5,045)		(7,930)
Add: stock dividends		475		475		535		535		60		60
Add: stock-based compensation		1,475		1,450		1,445		1,425		(30)		(25)
Add: depreciation and amortization on real estate assets		155		135		490		470		335		335
Add: loss on modification of debt		-		-		235		235		235		235
Adjusted earnings	$	19,050	$	22,620	$	14,605	$	15,295	$	(4,445)	$	(7,325)
Earnings per share – diluted	$	1.41	$	1.71	$	1.00	$	1.06	$	(0.41)	$	(0.65)
Adjusted earnings per share - diluted	$	1.58	$	1.88	$	1.22	$	1.28	$	(0.36)	$	(0.60)
Average shares outstanding - diluted		12,050,000		12,050,000		11,950,000		11,950,000		100,000		100,000

(1)	Includes $3.5 million (low and high) and $3.7 million (low) / $3.6 million (high) of management fees for updated guidance and previous guidance for the year ending December 31, 2017, respectively.
(2)	Adjusted guidance to consider our purchase of 100% of developer’s interests in self-storage facility in Orlando MSA.
(3)	Excludes $1.3 million (low and high) and $1.4 million (low) / $1.6 million (high) of unrealized appreciation in fair value of investments from the real estate venture which is included in JV income for updated guidance and previous guidance for the year ending December 31, 2017, respectively.
(4)	Represents both cash dividends and stock dividends estimated with respect to outstanding shares of Series A Preferred Stock.

The guidance above is based on the following key assumptions regarding the Company’s business activities in the fourth quarter of 2017:

▪ projected closings on $90 million to $100 million of new development property investments with a profits interest for the fourth quarter of 2017 ($395 million to $405 million for the full-year);

▪ fundings of approximately $35 million to $40 million on the Company’s investment commitments during the fourth quarter ($155 million to $160 million for the full-year);

▪ anticipated proceeds of $30 million from the issuance of Series A Preferred Stock during the fourth quarter of 2017, which includes the issuance of $10 million of Series A Preferred Stock on October 26, 2017; and

▪ no change in the key assumptions used to value the Company’s investments.

Third Quarter 20177

Over 75% of the development property investment commitments closed by the Company in 2016 were made through the Heitman joint venture (“JV”). The Company resumed closing on-balance sheet investments in late 2016. The 2017 guidance reflects the impact of the limited number of on-balance sheet closings in 2016 resulting in modest fair value adjustments in 2017 on the 2016 investments. The Company expects that the substantial increase in on-balance sheet investment activity in 2017 will result in significant increases in interest income and fair value appreciation in 2018.

Preliminary Full-Year 2018 Guidance

The following table reflects preliminary guidance for revenues, JV income, G&A expenses, and fair value appreciation for the full-year 2018. Such guidance is based on management's current expectations of Company investment activity (including fair value appreciation), the operational and new supply dynamics of the self-storage markets in which the Company has invested, and overall economic conditions. 

	Dollars in thousands
	Year ending
	December 31, 2018
	Low		High
Interest income from investments	$	23,000	$	25,000
Rental and other property-related income from real estate owned		900		1,000
Other income		80		100
Total revenues	$	23,980	$	26,100
JV income		1,400		1,900
G&A expenses		15,000		13,500
Change in fair value of investments(1)		46,000		56,000

(1) Excludes $0.8 million (low) and $1.2 million (high) of unrealized appreciation in fair value of investments from the real estate venture which is included in JV income.

The guidance above is based on the following key assumptions regarding the Company’s business activities in the year ending December 31, 2018:

	▪		projected closings on $200 million to $230 million of new development property investments with a profits interest in 2018;
	▪		estimated fundings of approximately $260 million to $300 million on the Company’s closed and projected investment commitments in 2018(1);
	▪		increases in general and administrative expenses largely due to anticipated increases in the Company’s management fees as equity capitalization increases;
	▪		no significant change in the Company’s business model; and
	▪		no additional purchases of developers’ interests.
(1)		At the time of Certificate of Occupancy of each development project financed by the Company, the amount of the Company’s commitment that is actually funded generally ranges from 88% to 90% of the Company’s total commitment, with the balance of such commitment held to fund interest payments and operating reserves during the initial 18 to 24 months lease-up of the project. The amount of estimated fundings reflect this investment methodology.

Third Quarter 20178

Jernigan Capital, Inc.

Financial Highlights- Trailing Five Quarters

(unaudited, in thousands, except share and per share data)

	Three months ended
	September 30,		June 30,		March 31,		December 31,		September 30,
	2017		2017		2017		2016		2016
Operating Data:
Interest income, rental-related income and other revenues	$	3,361	$	2,599	$	2,301	$	2,158	$	1,698
JV income		730		595		422		424		436
Total revenues and JV income		4,091		3,194		2,723		2,582		2,134
General & administrative expenses		(2,422)		(2,078)		(2,208)		(1,942)		(1,865)
Property operating expenses of real estate owned		(114)		(43)		(31)		-		-
Depreciation and amortization of real estate owned		(172)		(38)		(24)		-		-
Transaction and other expenses, restructuring costs, and deferred termination fee to Manager		-		-		-		-		(2)
Interest expense		(323)		(230)		(204)		(373)		(148)
Loss on modification of debt		(232)		-		-		-		-
Subtotal		828		805		256		267		119
Change in fair value of investments		3,384		4,289		1,393		4,185		4,867
Other interest income		245		100		134		37		8
Net income		4,457		5,194		1,783		4,489		4,994
Net income attributable to preferred stockholders		(310)		(177)		(546)		(996)		-
Net income attributable to common stockholders	$	4,147	$	5,017	$	1,237	$	3,493	$	4,994
Plus: stock dividends payable to preferred stockholders		132		-		371		823		-
Plus: stock-based compensation		296		435		292		252		341
Plus: depreciation and amortization on real estate assets		172		38		24		-		-
Plus: loss on modification of debt		232		-		-		-		-
Plus: transaction and other expenses, restructuring costs, and deferred termination fee to Manager		-		-		-		-		2
Adjusted Earnings	$	4,979	$	5,490	$	1,924	$	4,568	$	5,337
Basic earnings per share attributable to common stockholders	$	0.29	$	0.50	$	0.14	$	0.53	$	0.84
Diluted earnings per share attributable to common stockholders	$	0.29	$	0.50	$	0.14	$	0.53	$	0.84
Adjusted Earnings per share attributable to common stockholders - diluted	$	0.35	$	0.55	$	0.21	$	0.69	$	0.90
Weighted-average shares of common stock outstanding:
Basic		14,042,350		9,850,967		8,857,030		6,458,845		5,831,135
Diluted		14,244,345		10,033,029		8,993,528		6,619,848		5,963,093
Dividends declared per share of common stock	$	0.35	$	0.35	$	0.35	$	0.35	$	0.35
Balance Sheet Data:
Cash and cash equivalents	$	54,999	$	100,529	$	28,252	$	67,373	$	13,009
Development property investments at fair value		188,540		163,979		117,936		95,102		84,986
Operating property loans at fair value		5,990		8,790		9,965		9,905		15,090
Investment in and advances to real estate venture		12,573		14,314		10,812		5,373		2,883
Self-storage real estate owned, net		15,594		7,283		7,350		-		-
Total assets		284,193		305,127		192,429		192,779		125,826
Senior loan participations		668		20,147		19,299		18,582		17,521
Secured revolving credit facility		-		-		-		-		-
Total liabilities		8,434		28,733		24,873		24,417		20,983
Total equity		275,759		276,394		167,556		168,362		104,843
Common book value / common shares outstanding	$	18.71	$	18.75	$	17.57	$	17.74	$	17.59

Third Quarter 20179

Jernigan Capital, Inc.

Consolidated Balance Sheets- Trailing Five Quarters

(unaudited, in thousands)

	As of
	September 30,		June 30,		March 31,		December 31,		September 30,
	2017		2017		2017		2016		2016
Assets:
Cash and cash equivalents	$	54,999	$	100,529	$	28,252	$	67,373	$	13,009
Development property investments at fair value		188,540		163,979		117,936		95,102		84,986
Operating property loans at fair value		5,990		8,790		9,965		9,905		15,090
Investment in and advances to real estate venture		12,573		14,314		10,812		5,373		2,883
Self-storage real estate owned, net		15,594		7,283		7,350		-		-
Other loans, at cost		1,754		6,619		14,826		11,752		6,243
Deferred costs		3,813		2,305		2,294		2,207		2,690
Prepaid expenses and other assets		734		1,119		809		868		727
Fixed assets, net		196		189		185		199		198
Total assets	$	284,193	$	305,127	$	192,429	$	192,779	$	125,826
Liabilities:
Senior loan participations	$	668	$	20,147	$	19,299	$	18,582	$	17,521
Secured revolving credit facility		-		-		-		-		-
Due to Manager		1,438		1,027		839		1,008		579
Accounts payable, accrued expenses and other liabilities		1,035		2,399		1,040		697		796
Dividends payable		5,293		5,160		3,695		4,130		2,087
Total liabilities	$	8,434	$	28,733	$	24,873	$	24,417	$	20,983
Equity:
Jernigan Capital, Inc. stockholders’ equity:
Cumulative preferred stock	$	9,445	$	9,445	$	9,446	$	9,448	$	-
Common stock		142		142		90		90		60
Additional paid-in capital		272,726		272,525		163,772		162,664		108,982
Accumulated deficit		(6,554)		(5,718)		(5,752)		(3,840)		(4,199)
Total equity		275,759		276,394		167,556		168,362		104,843
Total liabilities and equity	$	284,193	$	305,127	$	192,429	$	192,779	$	125,826

Third Quarter 201710

Jernigan Capital, Inc.

Consolidated Statements of Operations

(unaudited, in thousands, except per share data)

	Three months ended				Nine months ended
	September 30,				September 30,
	2017		2016		2017		2016
Revenues:
Interest income from investments	$	3,173	$	1,698	$	7,759	$	4,374
Rental and other property-related income from real estate owned		160		-		328		-
Other revenues		28		-		174		-
Total revenues		3,361		1,698		8,261		4,374
Costs and expenses:
General and administrative expenses		1,386		1,463		4,336		4,102
Management fees to Manager		1,036		402		2,373		1,218
Property operating expenses of real estate owned		114		-		188		-
Depreciation and amortization of real estate owned		172		-		233		-
Transaction and other expenses		-		2		-		2,129
Restructuring costs		-		-		-		54
Deferred termination fee to Manager		-		-		-		239
Total costs and expenses		2,708		1,867		7,130		7,742
Operating income (loss)		653		(169)		1,131		(3,368)
Other income (expense):
Equity in earnings from unconsolidated real estate venture		730		436		1,747		854
Change in fair value of investments		3,384		4,867		9,066		14,185
Interest expense		(323)		(148)		(757)		(186)
Loss on modification of debt		(232)		-		(232)		-
Other interest income		245		8		479		43
Total other income		3,804		5,163		10,303		14,896
Net income		4,457		4,994		11,434		11,528
Net income attributable to preferred stockholders		(310)		-		(1,033)		-
Net income attributable to common stockholders	$	4,147	$	4,994	$	10,401	$	11,528
Basic earnings per share attributable to common stockholders	$	0.29	$	0.84	$	0.94	$	1.90
Diluted earnings per share attributable to common stockholders	$	0.29	$	0.84	$	0.94	$	1.90
Dividends declared per share of common stock	$	0.35	$	0.35	$	1.05	$	1.05

Third Quarter 201711

Jernigan Capital, Inc.  

Calculation of Adjusted Earnings and Reconciliation to Net Income Attributable to

Common Stockholders – Trailing Five Quarters

(unaudited, in thousands, except share and per share data)

	Three months ended
	September 30,		June 30,		March 31,		December 31,		September 30,
	2017		2017		2017		2016		2016
Net income attributable to common stockholders	$	4,147	$	5,017	$	1,237	$	3,493	$	4,994
Plus: stock dividends payable to preferred stockholders		132		-		371		823		-
Plus: stock-based compensation		296		435		292		252		341
Plus: depreciation and amortization on real estate assets		172		38		24		-		-
Plus: loss on modification of debt		232		-		-		-		-
Plus: transaction and other expenses		-		-		-		-		2
Adjusted Earnings	$	4,979	$	5,490	$	1,924	$	4,568	$	5,337
Adjusted Earnings per share attributable to common stockholders - diluted	$	0.35	$	0.55	$	0.21	$	0.69	$	0.90
Weighted average shares of common stock outstanding - diluted		14,244,345		10,033,029		8,993,528		6,619,848		5,963,093

Third Quarter 201712

Jernigan Capital, Inc.

Schedule of Completed Development Projects

As of September 30, 2017

(unaudited, dollars in thousands)

	Location					Remaining
	(MSA)			Funded		Unfunded				Size		Date		Months	% Physical
Closing Date	Address	Commitment		Investment		Commitment		Fair Value		(NRSF) (3)		Opened		Open (1)	Occupancy (1)
6/10/2015	Atlanta 1
	5110 McGinnis Ferry Rd		8,132		8,010		122		10,507		71,743	5/25/2016		17		63.8	%
6/19/2015	Tampa 1
	12832 S US Highway 301		5,369		5,285		84		6,058		50,050	4/11/2016		19		85.7	%
6/26/2015	Atlanta 2
	340 Franklin Gateway SE		6,050		5,754		296		8,519		66,137	5/24/2016		17		74.2	%
6/29/2015	Charlotte 1
	9323 Wright Hill Rd		7,624		7,126		498		10,551		87,430	8/18/2016		14		42.7	%
7/2/2015	Milwaukee
	420 W St Paul Ave		7,650		7,377		273		8,762		83,154	10/9/2016	(2)	13		28.5	%
7/31/2015	New Haven
	453 Washington Ave		6,930		6,412		518		8,399		64,225	12/16/2016		11		47.3	%
9/30/2015	Jacksonville 1
	1939 East West Pkwy		6,445		5,988		457		8,830		59,848	8/12/2016		15		91.4	%
10/27/2015	Austin
	251 N AW Grimes Blvd		8,658		7,000		1,658		8,779		77,334	3/16/2017		8		27.8	%
8/10/2015	Pittsburgh
	6400 Hamilton Ave		5,266		4,574		692		6,591		48,024	5/11/2017		6		15	%
1/4/2017	New York City 1
	1775 5th Ave		16,117		13,165		2,952		16,712		105,672	9/29/2017		1		3.6	%
Total Completed Development Loans		$	78,241	$	70,691	$	7,550	$	93,708
4/21/2015	Orlando 1/2 (4)
	11920 W Colonial Dr.		10,506		N/A		N/A		N/A		93,965	5/1/2016		18		68.7	%
Total Owned Properties		$	10,506
Total Completed Investments		$	88,747

(1)	As of October 30, 2017.
(2)	Certificate of Occupancy (“C/O”) was received in August 2016, prior to the property being ready for opening by the manager of the project. Property opened to partial leasing in October 2016. All floors opened to leasing in February 2017.
(3)	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.
(4)	In August 2017, the Company purchased its partner’s remaining 25.1% profits interest in the Orlando 1 investment and its partner’s 50.1% profits interest in the Orlando 2 investment, the 287-unit addition to the Orlando 1 investment, for $1.6 million. The Orlando facility is now wholly-owned by the Company. Orlando 1 (51,235 NRSF) was at 86.2% physical occupancy on July 18, 2017. On July 19, 2017 the 42,730 NRSF Orlando 2 addition opened for business. Occupancy reflected is for the combined facility.

Third Quarter 201713

Schedule of Development Projects in Progress

As of September 30, 2017

(unaudited, dollars in thousands)

	Location					Remaining							Estimated
	(MSA)			Funded		Unfunded				Size		Construction	C/O
Closing Date	Address	Commitment		Investment		Commitment		Fair Value		(NRSF) (2)		Start Date	Quarter (1)
8/14/2015	Raleigh
	1501 Sunrise Ave	$	8,792	$	4,277	$	4,515	$	4,260		60,785	Q4 2016	Q1 2018
9/20/2016	Charlotte 2
	1200 E 10th St		12,888		4,517		8,371		4,360		77,914	Q1 2017	Q2 2018
11/17/2016	Jacksonville 2
	37 Jefferson Rd		7,530		3,899		3,631		4,453		70,930	Q4 2016	Q1 2018
1/18/2017	Atlanta 3
	1484 Northside Dr NW		14,115		3,471		10,644		3,314		92,935	Q3 2017	Q1 2019
1/31/2017	Atlanta 4
	4676 S Atlanta Rd		13,678		5,698		7,980		5,667		103,561	Q2 2017	Q3 2018
2/24/2017	Orlando 3
	12711 E Colonial Dr		8,056		1,468		6,588		1,409		71,113	Q2 2017	Q3 2018
2/24/2017	New Orleans
	2709 Severn Ave		12,549		-		12,549		-		90,315	Q3 2017	Q3 2018
2/27/2017	Atlanta 5
	56 Peachtree Valley Rd NE		17,492		3,910		13,582		3,790		84,988	Q3 2017	Q4 2018
3/1/2017	Fort Lauderdale
	5601 NE 14th Ave		9,952		1,945		8,007		1,875		79,279	Q1 2017	Q4 2018
3/1/2017	Houston
	1070 Brittmoore Rd		13,630		3,382		10,248		3,283		132,967	Q4 2017	Q2 2018
4/14/2017	Louisville 1
	2801 N Hurstbourne Pkwy		8,523		1,471		7,052		1,394		66,150	Q2 2017	Q3 2018
4/20/2017	Denver 1
	6206 W Alameda Ave		9,806		1,906		7,900		1,822		59,150	Q2 2017	Q4 2018
4/20/2017	Denver 2
	3110 S Wadsworth Blvd		11,164		2,877		8,287		2,790		74,615	Q2 2017	Q2 2018
5/2/2017	Atlanta 6
	2033 Monroe Dr		12,543		3,117		9,426		3,017		81,120	Q2 2017	Q3 2018
5/2/2017	Tampa 2
	9185 Ulmerton Rd		8,091		890		7,201		813		71,400	Q3 2017	Q3 2018
5/19/2017	Tampa 3
	Lot 3B Crossroads Town Center		9,224		729		8,495		639		70,888	Q3 2017	Q3 2018
6/12/2017	Tampa 4
	3209 30th Ave S St		10,266		1,364		8,902		1,266		73,500	Q3 2017	Q4 2018
6/19/2017	Baltimore
	1835 Washington Blvd		10,775		2,672		8,103		2,484		83,450	Q3 2017	Q3 2018
6/28/2017	Knoxville
	7807 Kingston Pike		9,115		1,656		7,459		1,573		72,069	Q3 2017	Q4 2018
6/29/2017	Boston
	329 Boston Post Rd		14,103		2,031		12,072		1,898		93,738	Q3 2017	Q3 2018
6/30/2017	New York City 2
	465 W 150th St		26,482		16,712		9,770		16,333		40,593	Q4 2017	Q3 2018
7/27/2017	Jacksonville 3
	2004 Edison Ave		8,096		888		7,208		810		68,700	Q3 2017	Q4 2018
8/30/2017	Orlando 4
	9001 Eastmar Commons		9,037		1,790		7,247		1,698		77,125	Q1 2018	Q1 2019
9/14/2017	Los Angeles
	943-959 W Hyde Park Blvd		28,750		7,382		21,368		7,284		120,038	Q1 2019	Q3 2020
9/14/2017	Miami
	4250 SW 8th St		14,657		5,761		8,896		5,644		69,175	Q2 2018	Q2 2019
9/28/2017	Louisville 2
	3415 Bardstown Rd		9,940		2,230		7,710		2,139		74,172	Q4 2017	Q4 2018
Total Development Loan in Progress		$	319,254	$	86,043	$	233,211	$	84,015

(1)	Estimated C/O dates represent the Company’s best estimate as of September 30, 2017 based on project specific information learned throughunderwriting and communications with respective developers. These dates are subject to change due to unexpected project delays/efficiencies.
(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.

Third Quarter 201714

Schedule of Heitman JV Development Projects Completed and In Progress

As of September 30, 2017

(unaudited, dollars in thousands)

Development Projects Completed:

	Location					Remaining
	(MSA)			Funded		Unfunded				Size		Date	Months	% Physical
Closing Date	Address	Commitment		Investment		Commitment		Fair Value		(NRSF) (2)		Opened	Open (1)	Occupancy (1)
7/19/2016	Jacksonville
	3211 San Pablo Rd S		8,127		6,989		1,138		10,541		80,646	7/26/2017	3		31.3	%
9/28/2016	Columbia
	401 Hampton St		9,199		7,651		1,548		8,525		70,161	8/23/2017	2		13.4	%
8/15/2016	Atlanta 2
	11220 Medlock Bridge Rd		8,772		6,535		2,237		7,423		70,209	9/14/2017	2		4.7	%
4/15/2016	Washington DC
	1325 Kenilworth Ave NE		17,269		14,346		2,923		15,937		90,500	9/25/2017	1		5.2	%
Total Completed Development Loans		$	43,367	$	35,521	$	7,846	$	42,426

(1)	As of October 30, 2017.
(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.

Development Projects In Progress:

	Location					Remaining							Estimated
	(MSA)			Funded		Unfunded				Size		Construction	C/O
Closing Date	Address	Commitment			Investment	Commitment		Fair Value		(NRSF) (2)		Start Date	Quarter (1)
5/14/2015	Miami 1
	490 NW 36th St	$	13,867	$	9,455	$	4,412	$	10,929		75,838	Q1 2016	Q1 2018
5/14/2015	Miami 2
	1100 NE 79th St		14,849		8,486		6,363		8,947		74,113	Q2 2016	Q1 2018
9/25/2015	Fort Lauderdale
	812 NW 1st St		13,230		7,298		5,932		7,796		87,413	Q2 2016	Q1 2018
4/29/2016	Atlanta 1
	1801 Savoy Dr		10,223		5,140		5,083		5,459		71,575	Q4 2016	Q1 2018
7/21/2016	New Jersey
	10 Central Ave		7,828		1,621		6,207		1,561		57,975	Q2 2017	Q2 2018
8/25/2016	Denver
	2225 E 104th Ave		11,032		7,605		3,427		8,678		85,725	Q4 2016	Q4 2017
12/22/2016	Raleigh
	7620 ACC Blvd		8,877		2,431		6,446		2,398		65,110	Q1 2017	Q2 2018
Total Development Projects in Progress		$	79,906	$	42,036	$	37,870	$	45,768
Total Heitman JV Investments		$	123,273	$	77,557	$	45,716	$	88,194

(1)	Estimated C/O dates represent the Company’s best estimate as of September 30, 2017 based on project specific information learned throughunderwriting and communications with respective developers. These dates are subject to change due to unexpected project delays/efficiencies.
(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.

Third Quarter 201715

Closed Investments by Geography

As of September 30, 2017

Third Quarter 201716

Investment Pipeline by Geography

 Executed term sheets for investments in 14 separate self-storage development projects for an aggregate capital commitment of approximately $186 million

 Maintains a robust pipeline in excess of $700 million of additional development investment opportunities in top 50 markets    

Third Quarter 201717

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	Stock Exchange Listing	Suite 650	package or annual report, please
Memphis, TN 38119	New York Stock Exchange	Memphis, TN 38119	visit our website at
901.567.9510		901.567.9510	www.jernigancapital.com

Executive Management

Dean Jernigan	John A. Good
Chairman and Chief Executive Officer	President and Chief Operating Officer
Kelly P. Luttrell
Senior Vice President, Chief Financial Officer, and Treasurer

Independent Directors

Mark O. Decker	James D. Dondero
Director	Director
Howard A. Silver	Harry J. Thie
Director	Director

Equity Research Coverage

Baird Equity Research	FBR Capital Markets
RJ Milligan	David Corak
rjmilligan@rwbaird.com	dcorak@fbr.com
Jefferies LLC	KeyBanc Capital Markets
George Hoglund	Todd M. Thomas
gholund@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.

Third Quarter 201718