EX-99.2 3 jcap-20171101xex99_2.htm EXHIBIT 99.2 20170802 Ex 992

Exhibit 99.2

Picture 6







 



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 2017                       Picture 282

 

 

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 2017                       Picture 283

 

 

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 2017                       Picture 284

 

 

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 2017                       Picture 285

 

 

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 2017                       Picture 286

 

 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

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 2017                       Picture 287

 

 



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 2017                       Picture 288

 

 

 





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 2017                       Picture 289

 

 





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 2017                       Picture 2810

 

 

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 2017                       Picture 2811

 

 

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 









Picture 14



Third Quarter 2017                       Picture 2812

 

 

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 2017                       Picture 2813

 

 

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 through underwriting 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 2017                       Picture 2814

 

 

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 through underwriting 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 2017                       Picture 2815

 

 





Closed Investments by Geography

As of September 30, 2017



 

 Picture 1

 







Third Quarter 2017                       Picture 2816

 

 

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

 

 

Picture 4

Third Quarter 2017                       Picture 2817

 

 

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 2017                       Picture 2818