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): October 31, 2018

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 October 31, 2018, Jernigan Capital, Inc. (“the Company”) issued a press release announcing its financial position as of September 30, 2018, results of operations for the three and nine month periods ended September 30, 2018, and other related information. Also on October 31, 2018, 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, 2018. 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 October 31, 2018
99.2	Jernigan Capital, Inc. Third Quarter 2018 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: October 31, 2018
	Jernigan Capital, Inc.
	By:	/s/ John A. Good
		Name:	John A. Good
		Title:	Chief Executive Officer

EX-99.1

Exhibit 99.1

Jernigan Capital Reports Third Quarter Earnings per Share and Adjusted Earnings per Share at Top End of Guidance Range

MEMPHIS, Tennessee, October 31, 2018 / 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, 2018, and reaffirmed earnings per share and adjusted earnings per share guidance for full-year 2018.

Third Quarter Highlights include:

§ Earnings per share and adjusted earnings per share of $0.57 and $0.75, respectively – results are at the top end of guidance ranges provided with the Company’s second quarter 2018 earnings release.

§ Quarterly net income attributable to common stockholders of $11.2 million represents a  169% increase over $4.1 million reported for third quarter of 2017; quarterly adjusted earnings of $14.5 million represents a  192% increase over $5.0 million reported for third quarter 2017.

§ Continued execution of business plan to own new self-storage properties in top markets through buyout of developer partner’s interest in Charlotte facility – Company now wholly-owns six of the initial 11 self-storage facilities financed in 2015.

§ Received net proceeds in excess of recorded fair value of the Company’s original loan investment in a self-storage project in suburban Tampa area.

§ Construction completed and operations commenced for nine additional Generation V self-storage development properties in which JCAP has an aggregate committed investment of $97.4 million.

§ Continued to source high-quality financing of the Company’s development commitments by procuring from one of the Company’s existing syndicate banks $24.9 million of first mortgage loans on three of the Company's wholly-owned self-storage facilities.

“We are very pleased with our third quarter results and our achievements through the first nine months of the year,” stated Dean Jernigan, Executive Chairman of Jernigan Capital, Inc. “Our strong results are the fruits of a best in class team, focused site selection and meticulous underwriting. We are also excited to have acquired 100% ownership of the state-of-the art self-storage facility that we financed in Charlotte during our inaugural year, furthering our objective to own a substantial majority of the facilities we finance.”

John Good, Chief Executive Officer of the Company added, “Our third quarter results reflect 170% growth in total revenues, 97% growth in earnings per share and 114% growth in adjusted earnings per share compared to the comparable quarter in 2017. Moreover, we are beginning to reap the benefits of the record investment year  we experienced in 2017, as twelve new Generation V stores opened for business in top markets since the end of the second quarter. Our developer partners have now delivered 36 of the 68, or over 50%, of the self-storage projects we have financed. During the third quarter, we experienced the first monetization of an existing investment, as our developer partner of a suburban Tampa project that opened in April 2016 was sold to a third party with net proceeds to JCAP exceeding the fair value at which the investment was recorded at the time of the transaction.”

“During the quarter we procured an aggregate $24.9 million of first mortgage debt financing on three of our wholly-owned self-storage facilities and issued the remaining $15.0 million of preferred stock under our 2016 preferred stock purchase agreement with Highland Capital,” stated Mr. Good. “Our investment commitments are now fully-covered through the back end of 2019 and we have positioned ourselves to maintain conservative leverage levels for the foreseeable future.”

1

Financial Highlights

Earnings per share and adjusted earnings per share for the three months ended September 30, 2018 were $0.57 and $0.75, respectively, which is in line with the top end of the Company’s guidance range.Earnings per share and adjusted earnings per share for the nine months ended September 30, 2018 were $1.16 and $1.80, respectively.

Net income attributable to common stockholders for the three months ended September 30, 2018 was $11.2 million, an increase of $7.0 million, or 169%, over the $4.1 million net income attributable to common stockholders for the comparable quarter in 2017. Net income attributable to common stockholders for the nine months ended September 30, 2018 was $19.2 million, an increase of $8.7 million, or 84%, over the $10.4 million reported for the comparable nine month period in 2017.

Adjusted earnings for the three months ended September 30, 2018 were $14.5 million, a 192% increase over the $5.0 million adjusted earnings for the comparable quarter of 2017. Adjusted earnings for the nine months ended September 30, 2018 was $29.8 million compared to $12.4 million for the comparable nine month period in 2017, a 140% increase.

Total revenues for the three and nine months ended September 30, 2018 were $9.1 million and $21.5 million, respectively, representing increases of $5.7 million, or 170%, and $13.3 million, or 161%, over total revenues for the three and nine months ended September 30, 2017, respectively. The increase in revenues is primarily attributed to the increase in the outstanding principal balances on the Company’s investment portfolio and the increase in rental and other property-related income derived from the Company’s self-storage real estate owned.

General and administrative expenses, excluding management fees to the manager, for the three and nine months ended September 30, 2018 were $1.7 million and $5.6 million, compared to $1.4 million and $4.3 million for the comparable 2017 periods, respectively. Included in these amounts were stock-based compensation expense (“SBE”) of $0.4 million and $0.3 million for the three months ended September 30, 2018 and 2017, respectively, and $1.5 million and $1.0 million for the nine months ended September 30, 2018 and 2017, respectively. The increase in SBE was primarily due to additional restricted stock grants to certain officers and employees of the Company’s external manager during 2017 and 2018. General and administrative expenses also increased as a result of annual compensation increases as well as the addition of a senior executive employee at the Company’s external manager during 2018.

On August 28, 2018, the limited liability company that owned the self-storage project underlying the Company’s Tampa 1 investment sold the property to a third party and distributed net proceeds from the sale to the Company in settlement of its first mortgage loan and 49.9% Profits Interest. In addition to full repayment of the Company’s underlying mortgage loan having outstanding principal of $5.3 million, it received proceeds of $725,000 comprised of $106,000 of prepayment penalty which is recognized in interest income from investments and $619,000 which is recognized as realized gain on investments. These proceeds exceeded the Company’s fair value recognized on this investment through June 30, 2018 by $54,000.

Net income attributable to common stockholders and adjusted earnings for the three and nine months ended September 30, 2018 also include increases in the fair value of investments of $11.1 million and $24.0 million, respectively, compared to increases of $3.4 million and $9.1 million for the comparable periods in 2017. This represents a $7.7 million, or 227%, and $14.9 million, or 165%, year-over-year increase from the three and nine months ended September 30, 2017, respectively. During 2017, the Company consummated 32 on-balance sheet development investments totaling $408.8 compared to three on-balance sheet development investments totaling $25.6 million in 2016. The increase in the fair value of investments is driven primarily by construction progression on the Company’s 2017 investments.

Capital Markets Activities

As of September 30, 2018, the Company had issued 125,000 shares of its Series A Preferred Stock and received $125.0 million in gross proceeds pursuant to the terms of a purchase agreement between the Company and Highland Capital Management (the “Purchase Agreement”). The Company has now issued all shares of Series A Preferred Stock available for issuance under the Purchase Agreement.During the quarter, the Company did not issue any shares of common stock or Series B preferred stock under its ATM programs, and continues to have approximately $20.6 million of capacity under its common stock ATM program and $43.4 million under its Series B preferred stock ATM program.

As of September  30, 2018, the Company had no borrowings under its secured revolving credit facility and had$81.5 million in total availability. The Company expects such availability to increase over the balance of 2018 and 2019 as the Company’s on-balance sheet self-storage investments continue to achieve certificates of occupancy and commence lease-up.

2

During the three months ended September 30, 2018, the Company obtained term loans in the aggregate principal amount of $24.9 million, which are secured by theCompany's three wholly-owned self-storage facilities in Orlando, Florida and Atlanta, Georgia.

Dividends

On July 31, 2018, the Company declared cash and stock dividends on its Series A Preferred Stock. The cash dividend of $2.0 million was paid on October 15, 2018 to holders of record on October 1, 2018. A stock dividend of 109,494 shares of common stock was issued on October 15, 2018 to holders of record on October 1, 2018 for an aggregate value of $2.1 million pursuant to the terms of the Stock Purchase Agreement.

On July 31, 2018, the Company declared a cash dividend on its Series B Preferred Stock. The cash dividend of $0.7 million was paid on October 15, 2018 to holders of record on October 1, 2018.

Additionally, on July 31, 2018, the Company declared a dividend of $0.35 per common share. The dividend was paid on October 15, 2018 to common stockholders of record on October 1, 2018.

Full-Year 2018 Guidance

The Company is reaffirming its earnings per share guidance range of $1.77 to $2.25 and adjusted earnings per share guidance range of $2.57 to $3.05 for the full-year 2018. Such guidance is based on management's current expectations of Company investment activity (including fair value appreciation and the expected timing of construction progress), the operational and new supply dynamics of the self-storage markets in which the Company has invested, and overall economic conditions. 

The guidance above is based on the following key assumptions that could have an impact on the Company’s financial results:  

- Utilization of debt over the remaining course of the year with expected borrowings at year-end of $55.0 million to $65.0 million.

- No change in the key assumptions used to value the Company’s investments other than the assumption of one 25 basis points interest rate increase for the remainder of 2018.

Additionally, the Company continues to monitor the construction progress of its investments with its development partners. Timing of fair value appreciation is heavily dependent upon construction progress, which is subject to factors outside the control of the Company’s development partners. As such, the exact timing of fair value recognition is subject to change.

Refer to the Company’s Third Quarter 2018 Supplemental Information Package for more information.

3

Conference Call and Webcast Information

The Company will host a webcast and conference call on Thursday,  November 1, 2018 at 11:00 a.m. Eastern Time to discuss the financial results and recent events. A webcast will be available on the Company’s website at investors.jernigancapital.com. To listen to a live broadcast, access the site at least 15 minutes prior to the scheduled start time in order to register anddownload and install any necessary audio software. The replay of the webcast will be available on the Company’s website until Thursday, November 15, 2018.

Supplemental financial and operating information as of and for the three and nine months ended September 30, 2018 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: 13683973

The replay can be accessed until midnightEastern Time on Thursday,  November 15, 2018.

About Jernigan Capital, Inc.

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

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to our full-year 2018 guidance, our ability to successfully source, structure, negotiate and close investments in self-storage facilities, our ability to fund our outstanding future investment commitments, our ability to own and manage our real estate assets, the availability, terms and our rate of deployment of equity capital and our ability to increase the borrowing base of our credit facility. 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 the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, and those set forth in the Company’s other reports and information filed with the Securities and Exchange Commission (“SEC”), 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, and other expenses. 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

4

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.

David Corak

(901) 567-9580

Investorrelations@jernigancapital.com

5

JERNIGAN CAPITAL, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands)

	As of
	September 30, 2018		December 31, 2017
	(unaudited)
Assets:
Cash and cash equivalents	$	42,624	$	46,977
Self-Storage Investment Portfolio:
Development property investments at fair value		335,509		228,233
Bridge loan investments at fair value		81,862		-
Operating property loans at fair value		2,440		5,938
Self-storage real estate owned, net		71,529		15,355
Investment in and advances to self-storage real estate venture		14,401		13,856
Other loans, at cost		4,818		1,313
Deferred financing costs		1,503		2,004
Prepaid expenses and other assets		1,327		776
Fixed assets, net		215		182
Total assets	$	556,228	$	314,634
Liabilities:
Senior loan participation	$	-	$	718
Secured revolving credit facility		-		-
Term loans, net of unamortized costs		24,578		-
Due to Manager		2,309		1,484
Accounts payable, accrued expenses and other liabilities		2,235		1,138
Dividends payable		11,567		5,474
Total liabilities		40,689		8,814
Equity:
Series A preferred stock		122,137		37,764
Series B Cumulative preferred stock		37,425		-
Common stock		193		144
Additional paid-in capital		364,108		276,814
Accumulated deficit		(8,324)		(8,902)
Total equity		515,539		305,820
Total liabilities and equity	$	556,228	$	314,634

6

JERNIGAN CAPITAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

	Three months ended				Nine months ended
	September 30,				September 30,
	2018		2017		2018		2017
Revenues:
Interest income from investments	$	8,086	$	3,173	$	19,051	$	7,759
Rental and other property-related income from real estate owned		970		160		2,398		328
Other revenues		35		28		99		174
Total revenues		9,091		3,361		21,548		8,261
Costs and expenses:
General and administrative expenses		1,727		1,386		5,579		4,336
Management fees to Manager		1,872		1,036		4,758		2,373
Property operating expenses of real estate owned		473		114		1,204		188
Depreciation and amortization of real estate owned		854		172		2,443		233
Other expenses		-		-		290		-
Total costs and expenses		4,926		2,708		14,274		7,130
Operating income		4,165		653		7,274		1,131
Other income (expense):
Equity in earnings from unconsolidated real estate venture		440		730		1,425		1,747
Realized gain on investments		619		-		619		-
Net unrealized gain on investments		11,060		3,384		24,003		9,066
Interest expense		(467)		(323)		(1,521)		(757)
Loss on modification of debt		-		(232)		-		(232)
Other interest income		147		245		315		479
Total other income		11,799		3,804		24,841		10,303
Net income		15,964		4,457		32,115		11,434
Net income attributable to preferred stockholders		(4,790)		(310)		(12,965)		(1,033)
Net income attributable to common stockholders	$	11,174	$	4,147	$	19,150	$	10,401
Basic earnings per share attributable to common stockholders	$	0.58	$	0.29	$	1.17	$	0.94
Diluted earnings per share attributable to common stockholders	$	0.57	$	0.29	$	1.16	$	0.94
Dividends declared per share of common stock	$	0.35	$	0.35	$	1.05	$	1.05

7

JERNIGAN CAPITAL, INC.

CALCULATION OF ADJUSTED EARNINGS

(in thousands, except share and per share data)

(unaudited)

	Three months ended
	September 30, 2018		September 30, 2017
Net income attributable to common stockholders	$	11,174	$	4,147
Plus: stock dividends payable to preferred stockholders		2,125		132
Plus: stock-based compensation		385		296
Plus: depreciation and amortization on real estate assets		854		172
Plus: loss on modification of debt		-		232
Adjusted Earnings	$	14,538	$	4,979
Adjusted Earnings per share attributable to common stockholders - diluted	$	0.75	$	0.35
Weighted average shares of common stock outstanding - diluted		19,459,751		14,244,345

	Nine months ended
	September 30, 2018		September 30, 2017
Net income attributable to common stockholders	$	19,150	$	10,401
Plus: stock dividends payable to preferred stockholders		6,375		503
Plus: stock-based compensation		1,507		1,023
Plus: depreciation and amortization on real estate assets		2,443		233
Plus: loss on modification of debt		-		232
Plus: other expenses		290		-
Adjusted Earnings	$	29,765	$	12,392
Adjusted Earnings per share attributable to common stockholders - diluted	$	1.80	$	1.12
Weighted average shares of common stock outstanding - diluted		16,540,367		11,108,540

8

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,
	2018		2017		2018		2017
Shares outstanding:
Weighted average common shares - basic		19,184,172		14,042,350		16,253,410		10,935,776
Effect of dilutive securities		275,579		201,995		286,957		172,764
Weighted average common shares, all classes		19,459,751		14,244,345		16,540,367		11,108,540
Calculation of Earnings per Share - basic
Net income	$	15,964	$	4,457	$	32,115	$	11,434
Less:
Net income allocated to preferred stockholders		4,790		310		12,965		1,033
Net income allocated to unvested restricted shares (1)		96		57		207		156
Net income attributable to common stockholders - two-class method	$	11,078	$	4,090	$	18,943	$	10,245
Weighted average common shares - basic		19,184,172		14,042,350		16,253,410		10,935,776
Earnings per share - basic	$	0.58	$	0.29	$	1.17	$	0.94
Calculation of Earnings per Share - diluted
Net income	$	15,964	$	4,457	$	32,115	$	11,434
Less:
Net income allocated to preferred stockholders		4,790		310		12,965		1,033
Net income attributable to common stockholders - two-class method	$	11,174	$	4,147	$	19,150	$	10,401
Weighted average common shares - diluted		19,459,751		14,244,345		16,540,367		11,108,540
Earnings per share - diluted	$	0.57	$	0.29	$	1.16	$	0.94
Calculation of Adjusted Earnings per Share - basic
Adjusted Earnings	$	14,538	$	4,979	$	29,765	$	12,392
Less:
Adjusted Earnings allocated to unvested restricted shares (1)		125		68		321		185
Adjusted Earnings attributable to common stockholders - two-class method	$	14,413	$	4,911	$	29,444	$	12,207
Weighted average common shares - basic		19,184,172		14,042,350		16,253,410		10,935,776
Adjusted Earnings per share - basic	$	0.75	$	0.35	$	1.81	$	1.12
Calculation of Adjusted Earnings per Share - diluted
Adjusted Earnings attributable to common stockholders - two-class method	$	14,538	$	4,979	$	29,765	$	12,392
Weighted average common shares - diluted		19,459,751		14,244,345		16,540,367		11,108,540
Adjusted Earnings per share - diluted	$	0.75	$	0.35	$	1.80	$	1.12

(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, 2018 and 2017.

9

JERNIGAN CAPITAL, INC.

2018 GUIDANCE - RECONCILIATION OF ADJUSTED EARNINGS PER SHARE

(unaudited)

	Year ending December 31, 2018
	Low		High
Net income attributable to common stockholders per weighted average share	$	1.77	$	2.25
Plus: stock dividends payable to preferred stockholders		0.49		0.49
Plus: stock-based compensation		0.11		0.11
Plus: depreciation and amortization on real estate assets		0.18		0.18
Plus: other expenses		0.02		0.02
Adjusted Earnings per weighted average share	$	2.57	$	3.05

10

EX-99.2

Exhibit 99.2

Table of Contents

Legal Notices	2
Earnings Release	3
Financial Highlights – Trailing Five Quarters	6
Consolidated Balance Sheets – Trailing Five Quarters	7
Consolidated Statements of Operations	8
Calculation of Adjusted Earnings and Reconciliation to Net Income Attributable to Common Stockholders	9
Schedules of Projects	10
Closed Investments by Geography	15
Capital Sources and Uses	16
Company Information	18

Third Quarter 20181

Forward Looking Statements

This Supplemental Information package contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). These forward-looking statements include, without limitation, statements about our estimates, expectations, predictions and forecasts of our future business plans and financial and operating performance and/or results, including our full-year 2018earnings guidance, our ability to successfully source, structure, negotiate and close investments in self-storage facilities, our ability to fund our outstanding future investment commitments, the availability, terms and our rate of deployment of equity capital and our ability to increase borrowing base of our credit facility, as well as statements of management’s goals and objectives and other similar expressions concerning matters that are not historical facts. When we use the words “may,” “should,” “could,” “would,” “predicts,” “potential,” “continue,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” or similar expressions or their negatives, as well as statements in future tense, we intend to identify forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, beliefs and expectations, such forward-looking statements are not predictions of future events or guarantees of future performance and our actual financial and operating results could differ materially from those set forth in the forward-looking statements. Some factors that might cause such differences are described in the section entitled “Risk Factors” in our most recent Annual Report on Form 10-K for the year ended December 31, 2017, and those set forth in our other reports and information filed with the Securities and Exchange Commission (“SEC”), which factors include, without limitation, the following:

	our ability to successfully source, structure, negotiate and close investments in 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;
	potential limitations on our ability to pay dividends at historical rates;
	limitations in our existing and future debt agreements on our ability to pay distributions;
	the impact of our outstanding preferred stock on our ability to execute our business plan and pay distributions on our common stock; and
	general volatility of the capital markets and the market price of our common stock.

Given these uncertainties, undue reliance should not be placed on our forward-looking statements. We assume no duty or responsibility to publicly update or revise any forward-looking statement that may be made to reflect future events or circumstances or to reflect the occurrence of unanticipated events. We urge you to review the disclosures concerning risks in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent Annual Report on Form 10-K for the year ended December 31, 2017and 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,and other expenses. Management uses Adjusted Earnings and Adjusted Earnings per diluted share as key performance indicators in evaluating the operations of the Company's business. The Company is a capital provider to self-storage developers and believes that these measures are useful to management and investors as a starting point in measuring its operational performance because they exclude various equity-based payments (including stock dividends) and other items included in net income that do not relate to or are not indicative of its present and future operating performance, which can make periodic and peer analyses of operating performance more difficult. The Company’scomputation 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 20182

Press Release – October 2018

Jernigan Capital Reports Third Quarter Earnings per Share and Adjusted Earnings per Share at Top End of Guidance Range

MEMPHIS, Tennessee, October 31, 2018 / 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, 2018, and reaffirmed earnings per share and adjusted earnings per share guidance for full-year 2018.

Third Quarter Highlights include:

§ Earnings per share and adjusted earnings per share of $0.57 and $0.75, respectively – results are at the top end of guidance ranges provided with the Company’s second quarter 2018 earnings release.

§ Quarterly net income attributable to common stockholders of $11.2 million represents a 169% increase over $4.1 million reported for third quarter of 2017; quarterly adjusted earnings of $14.5 million represents a 192% increase over $5.0 million reported for third quarter 2017.

§ Continued execution of business plan to own new self-storage properties in top markets through buyout of developer partner’s interest in Charlotte facility – Company now wholly-owns six of the initial 11 self-storage facilities financed in 2015.

§ Received net proceeds in excess of recorded fair value of the Company’s original loan investment in a self-storage project in suburban Tampa area.

§ Construction completed and operations commenced for nine additional Generation V self-storage development properties in which JCAP has an aggregate committed investment of $97.4 million.

§ Continued to source high-quality financing of the Company’s development commitments by procuring from one of the Company’s existing syndicate banks $24.9 million of first mortgage loans on three of the Company's wholly-owned self-storage facilities.

“We are very pleased with our third quarter results and our achievements through the first nine months of the year,” stated Dean Jernigan, Executive Chairman of Jernigan Capital, Inc. “Our strong results are the fruits of a best in class team, focused site selection and meticulous underwriting. We are also excited to have acquired 100% ownership of the state-of-the art self-storage facility that we financed in Charlotte during our inaugural year, furthering our objective to own a substantial majority of the facilities we finance.”

John Good, Chief Executive Officer of the Company added, “Our third quarter results reflect 170% growth in total revenues, 97% growth in earnings per share and 114% growth in adjusted earnings per share compared to the comparable quarter in 2017. Moreover, we are beginning to reap the benefits of the record investment year we experienced in 2017, as twelve new Generation V stores opened for business in top markets since the end of the second quarter. Our developer partners have now delivered 36 of the 68, or over 50%, of the self-storage projects we have financed. During the third quarter, we experienced the first monetization of an existing investment, as our developer partner of a suburban Tampa project that opened in April 2016 was sold to a third party with net proceeds to JCAP exceeding the fair value at which the investment was recorded at the time of the transaction.”

“During the quarter we procured an aggregate $24.9 million of first mortgage debt financing on three of our wholly-owned self-storage facilities and issued the remaining $15.0 million of preferred stock under our 2016 preferred stock purchase agreement with Highland Capital,” stated Mr. Good. “Our investment commitments are now fully-covered through the back end of 2019 and we have positioned ourselves to maintain conservative leverage levels for the foreseeable future.”

Financial Highlights

Earnings per share and adjusted earnings per share for the three months ended September 30, 2018 were $0.57 and $0.75, respectively, which is in line with the top end of the Company’s guidance range. Earnings per share and adjusted earnings per share for the nine months ended September 30, 2018 were $1.16 and $1.80, respectively.

Net income attributable to common stockholders for the three months ended September 30, 2018 was $11.2 million, an increase of $7.0 million, or 169%, over the $4.1 million net income attributable to common stockholders for the comparable quarter in 2017. Net income attributable to common stockholders for the nine months ended September 30, 2018 was $19.2 million, an increase of $8.7 million, or 84%, over the $10.4 million reported for the comparable nine month period in 2017.

Third Quarter 20183

Adjusted earnings for the three months ended September 30, 2018 were $14.5 million, a 192% increase over the $5.0 million adjusted earnings for the comparable quarter of 2017. Adjusted earnings for the nine months ended September 30, 2018 was $29.8 million compared to $12.4 million for the comparable nine month period in 2017, a 140% increase.

Total revenues for the three and nine months ended September 30, 2018 were $9.1 million and $21.5 million, respectively, representing increases of $5.7 million, or 170%, and $13.3 million, or 161%, over total revenues for the three and nine months ended September 30, 2017, respectively. The increase in revenues is primarily attributed to the increase in the outstanding principal balances on the Company’s investment portfolio and the increase in rental and other property-related income derived from the Company’s self-storage real estate owned.

General and administrative expenses, excluding management fees to the manager, for the three and nine months ended September 30, 2018 were $1.7 million and $5.6 million, compared to $1.4 million and $4.3 million for the comparable 2017 periods, respectively. Included in these amounts were stock-based compensation expense (“SBE”) of $0.4 million and $0.3 million for the three months ended September 30, 2018 and 2017, respectively, and $1.5 million and $1.0 million for the nine months ended September 30, 2018 and 2017, respectively. The increase in SBE was primarily due to additional restricted stock grants to certain officers and employees of the Company’s external manager during 2017 and 2018. General and administrative expenses also increased as a result of annual compensation increases as well as the addition of a senior executive employee at the Company’s external manager during 2018.

On August 28, 2018, the limited liability company that owned the self-storage project underlying the Company’s Tampa 1 investment sold the property to a third party and distributed net proceeds from the sale to the Company in settlement of its first mortgage loan and 49.9% Profits Interest. In addition to full repayment of the Company’s underlying mortgage loan having outstanding principal of $5.3 million, it received proceeds of $725,000 comprised of $106,000 of prepayment penalty which is recognized in interest income from investments and $619,000 which is recognized as realized gain on investments. These proceeds exceeded the Company’s fair value recognized on this investment through June 30, 2018 by $54,000.

Net income attributable to common stockholders and adjusted earnings for the three and nine months ended September 30, 2018 also include increases in the fair value of investments of $11.1 million and $24.0 million, respectively, compared to increases of $3.4 million and $9.1 million for the comparable periods in 2017. This represents a $7.7 million, or 227%, and $14.9 million, or 165%, year-over-year increase from the three and nine months ended September 30, 2017, respectively. During 2017, the Company consummated 32 on-balance sheet development investments totaling $408.8 compared to three on-balance sheet development investments totaling $25.6 million in 2016. The increase in the fair value of investments is driven primarily by construction progression on the Company’s 2017 investments.

Capital Markets Activities

As of September 30, 2018, the Company had issued 125,000 shares of its Series A Preferred Stock and received $125.0 million in gross proceeds pursuant to the terms of a purchase agreement between the Company and Highland Capital Management (the “Purchase Agreement”). The Company has now issued all shares of Series A Preferred Stock available for issuance under the Purchase Agreement.During the quarter, the Company did not issue any shares of common stock or Series B preferred stock under its ATM programs, and continues to have approximately $20.6 million of capacity under its common stock ATM program and $43.4 million under its Series B preferred stock ATM program.

As of September 30, 2018, the Company had no borrowings under its secured revolving credit facility and had $81.5 million in total availability. The Company expects such availability to increase over the balance of 2018 and 2019 as the Company’s on-balance sheet self-storage investments continue to achieve certificates of occupancy and commence lease-up.

During the three months ended September 30, 2018, the Company obtained term loans in the aggregate principal amount of $24.9 million, which are secured by the Company's three wholly-owned self-storage facilities in Orlando, Florida and Atlanta, Georgia.

Dividends

On July 31, 2018, the Company declared cash and stock dividends on its Series A Preferred Stock. The cash dividend of $2.0 million was paid on October 15, 2018 to holders of record on October 1, 2018. A stock dividend of 109,494 shares of common stock was issued on October 15, 2018 to holders of record on October 1, 2018 for an aggregate value of $2.1 million pursuant to the terms of the Stock Purchase Agreement.

On July 31, 2018, the Company declared a cash dividend on its Series B Preferred Stock. The cash dividend of $0.7 million was paid on October 15, 2018 to holders of record on October 1, 2018.

Additionally, on July 31, 2018, the Company declared a dividend of $0.35 per common share. The dividend was paid on October 15, 2018 to common stockholders of record on October 1, 2018.

Third Quarter 20184

Full-Year 2018 Guidance

The Company is reaffirming its earnings per share guidance range of $1.77 to $2.25 and adjusted earnings per share guidance range of $2.57 to $3.05 for the full-year 2018. Such guidance is based on management's current expectations of Company investment activity (including fair value appreciation and the expected timing of construction progress), the operational and new supply dynamics of the self-storage markets in which the Company has invested, and overall economic conditions. 

The guidance above is based on the following key assumptions that could have an impact on the Company’s financial results:

· Utilization of debt over the remaining course of the year with expected borrowings at year-end of $55.0 million to $65.0 million.

· No change in the key assumptions used to value the Company’s investments other than the assumption of one 25 basis points interest rate increase for the remainder of 2018.

Additionally, the Company continues to monitor the construction progress of its investments with its development partners. Timing of fair value appreciation is heavily dependent upon construction progress, which is subject to factors outside the control of the Company’s development partners. As such, the exact timing of fair value recognition is subject to change.

Refer to the Company’s Third Quarter 2018 Supplemental Information Package for more information.

Third Quarter 20185

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,
	2018		2018		2018		2017		2017
Operating Data:
Interest income, rental-related income and other revenues	$	9,091	$	7,241	$	5,216	$	3,930	$	3,361
JV income		440		435		550		516		730
Total revenues and JV income		9,531		7,676		5,766		4,446		4,091
General & administrative expenses		(3,599)		(3,616)		(3,122)		(2,597)		(2,422)
Property operating expenses of real estate owned		(473)		(420)		(311)		(83)		(114)
Depreciation and amortization of real estate owned		(854)		(887)		(702)		(238)		(172)
Interest expense		(467)		(638)		(416)		(296)		(323)
Loss on modification of debt		-		-		-		-		(232)
Other expenses		-		-		(290)		-		-
Subtotal		4,138		2,115		925		1,232		828
Realized gain on investments		619		-		-		-		-
Net unrealized gain on investments		11,060		8,623		4,320		1,738		3,384
Other interest income		147		59		109		155		245
Net income		15,964		10,797		5,354		3,125		4,457
Net income attributable to preferred stockholders		(4,790)		(4,580)		(3,595)		(423)		(310)
Net income attributable to common stockholders	$	11,174	$	6,217	$	1,759	$	2,702	$	4,147
Plus: stock dividends payable to preferred stockholders		2,125		2,125		2,125		44		132
Plus: stock-based compensation		385		777		345		272		296
Plus: depreciation and amortization on real estate assets		854		887		702		238		172
Plus: loss on modification of debt		-		-		-		-		232
Plus: other expenses		-		-		290		-		-
Adjusted Earnings	$	14,538	$	10,006	$	5,221	$	3,256	$	4,979
Basic earnings per share attributable to common stockholders	$	0.58	$	0.40	$	0.12	$	0.19	$	0.29
Diluted earnings per share attributable to common stockholders	$	0.57	$	0.40	$	0.12	$	0.19	$	0.29
Adjusted Earnings per share attributable to common stockholders - diluted	$	0.75	$	0.64	$	0.36	$	0.23	$	0.35
Dividends declared per share of common stock	$	0.35	$	0.35	$	0.35	$	0.35	$	0.35
Weighted-average shares of common stock outstanding:
Basic		19,184,172		15,274,459		14,247,174		14,108,415		14,042,350
Diluted		19,459,751		15,564,317		14,555,337		14,295,639		14,244,345
Shares of common stock outstanding:		19,364,339		19,254,141		14,447,043		14,429,055		14,235,848
Balance Sheet Data:
Cash and cash equivalents	$	42,624	$	43,331	$	15,238	$	46,977	$	54,999
Self-Storage Investment Portfolio:
Development property investments at fair value		335,509		302,245		239,754		228,233		188,540
Bridge loan investments at fair value		81,862		79,581		77,435		-		-
Operating property loans at fair value		2,440		5,862		5,885		5,938		5,990
Self-storage real estate owned		74,444		61,896		61,633		15,827		15,827
Accumulated depreciation on self-storage real estate owned		(2,915)		(2,061)		(1,174)		(472)		(233)
Self-storage real estate owned, net		71,529		59,835		60,459		15,355		15,594
Investment in and advances to self-storage real estate venture		14,401		14,846		14,759		13,856		12,573
Total assets		556,228		509,860		417,252		314,634		284,193
Gross assets		559,143		511,921		418,426		315,106		284,426
Senior loan participation		-		-		732		718		668
Secured revolving credit facility		-		-		30,000		-		-
Term loans, net of unamortized costs		24,578		-		-		-		-
Total liabilities		40,689		16,122		43,944		8,814		8,434
Total equity		515,539		493,738		373,308		305,820		275,759
Common book value / common shares outstanding	$	18.38	$	18.13	$	18.35	$	18.58	$	18.71

Third Quarter 20186

Jernigan Capital, Inc.

Consolidated Balance Sheets- Trailing Five Quarters

(unaudited, in thousands)

	As of
	September 30,		June 30,		March 31,		December 31,		September 30,
	2018		2018		2018		2017		2017
Assets:
Cash and cash equivalents	$	42,624	$	43,331	$	15,238	$	46,977	$	54,999
Self-Storage Investment Portfolio:
Development property investments at fair value		335,509		302,245		239,754		228,233		188,540
Bridge loan investments at fair value		81,862		79,581		77,435		-		-
Operating property loans at fair value		2,440		5,862		5,885		5,938		5,990
Self-storage real estate owned, net		71,529		59,835		60,459		15,355		15,594
Investment in and advances to self-storage real estate venture		14,401		14,846		14,759		13,856		12,573
Other loans, at cost		4,818		1,361		1,103		1,313		1,754
Deferred financing costs		1,503		1,644		1,565		2,004		3,813
Prepaid expenses and other assets		1,327		975		884		776		734
Fixed assets, net		215		180		170		182		196
Total assets	$	556,228	$	509,860	$	417,252	$	314,634	$	284,193
Liabilities:
Senior loan participation	$	-	$	-	$	732	$	718	$	668
Secured revolving credit facility		-		-		30,000		-		-
Term loans, net of unamortized costs		24,578		-		-		-		-
Due to Manager		2,309		1,887		1,405		1,484		1,438
Accounts payable, accrued expenses and other liabilities		2,235		2,916		3,155		1,138		1,035
Dividends payable		11,567		11,319		8,652		5,474		5,293
Total liabilities	$	40,689	$	16,122	$	43,944	$	8,814	$	8,434
Equity:
Series A Cumulative preferred stock	$	122,137	$	107,168	$	72,181	$	37,764	$	9,445
Series B Cumulative preferred stock		37,425		37,463		35,988		-		-
Common stock		193		192		144		144		142
Additional paid-in capital		364,108		361,636		277,194		276,814		272,726
Accumulated deficit		(8,324)		(12,721)		(12,199)		(8,902)		(6,554)
Total equity		515,539		493,738		373,308		305,820		275,759
Total liabilities and equity	$	556,228	$	509,860	$	417,252	$	314,634	$	284,193

Third Quarter 20187

Jernigan Capital, Inc.

Consolidated Statements of Operations

(unaudited, in thousands, except per share data)

	Three months ended				Nine months ended
	September 30,				September 30,
	2018		2017		2018		2017
Revenues:
Interest income from investments	$	8,086	$	3,173	$	19,051	$	7,759
Rental and other property-related income from real estate owned		970		160		2,398		328
Other revenues		35		28		99		174
Total revenues		9,091		3,361		21,548		8,261
Costs and expenses:
General and administrative expenses		1,727		1,386		5,579		4,336
Management fees to Manager		1,872		1,036		4,758		2,373
Property operating expenses of real estate owned		473		114		1,204		188
Depreciation and amortization of real estate owned		854		172		2,443		233
Other expenses		-		-		290		-
Total costs and expenses		4,926		2,708		14,274		7,130
Operating income		4,165		653		7,274		1,131
Other income (expense):
Equity in earnings from unconsolidated real estate venture		440		730		1,425		1,747
Realized gain on investments		619		-		619		-
Net unrealized gain on investments		11,060		3,384		24,003		9,066
Interest expense		(467)		(323)		(1,521)		(757)
Loss on modification of debt		-		(232)		-		(232)
Other interest income		147		245		315		479
Total other income		11,799		3,804		24,841		10,303
Net income		15,964		4,457		32,115		11,434
Net income attributable to preferred stockholders		(4,790)		(310)		(12,965)		(1,033)
Net income attributable to common stockholders	$	11,174	$	4,147	$	19,150	$	10,401
Basic earnings per share attributable to common stockholders	$	0.58	$	0.29	$	1.17	$	0.94
Diluted earnings per share attributable to common stockholders	$	0.57	$	0.29	$	1.16	$	0.94
Dividends declared per share of common stock	$	0.35	$	0.35	$	1.05	$	1.05

Third Quarter 20188

Jernigan Capital, Inc.  

Calculation of Adjusted Earnings and Reconciliation to Net Income Attributable to Common Stockholders

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

	Three months ended
	September 30,		June 30,		March 31,		December 31,		September 30,
	2018		2018		2018		2017		2017
Net income attributable to common stockholders	$	11,174	$	6,217	$	1,759	$	2,702	$	4,147
Plus: stock dividends payable to preferred stockholders		2,125		2,125		2,125		44		132
Plus: stock-based compensation		385		777		345		272		296
Plus: depreciation and amortization on real estate assets		854		887		702		238		172
Plus: loss on modification of debt		-		-		-		-		232
Plus: other expenses		-		-		290		-		-
Adjusted Earnings	$	14,538	$	10,006	$	5,221	$	3,256	$	4,979
Adjusted Earnings per share attributable to common stockholders - diluted	$	0.75	$	0.64	$	0.36	$	0.23	$	0.35
Weighted average shares of common stock outstanding - diluted		19,459,751		15,564,317		14,555,337		14,295,639		14,244,345

	Nine months ended
	September 30, 2018		September 30, 2017
Net income attributable to common stockholders	$	19,150	$	10,401
Plus: stock dividends payable to preferred stockholders		6,375		503
Plus: stock-based compensation		1,507		1,023
Plus: depreciation and amortization on real estate assets		2,443		233
Plus: loss on modification of debt		-		232
Plus: other expenses		290		-
Adjusted Earnings	$	29,765	$	12,392
Adjusted Earnings per share attributable to common stockholders - diluted	$	1.80	$	1.12
Weighted average shares of common stock outstanding - diluted		16,540,367		11,108,540

Third Quarter 20189

Jernigan Capital, Inc.

Schedule of Owned Properties

As of September  30, 2018

(unaudited, dollars in thousands)

					Fair Value
Location					Recognized				Projected		Stabilized			Stabilized
(MSA)	Date	Date	Cash		Through Date		Gross		Stabilized		Yield on			Yield on			Size		Months	% Physical
Address	Opened	Acquired	Basis (1)		Acquired		Basis (2)		NOI (3)		Cash Basis			Gross Basis			(NRSF) (4)		Open (5)	Occupancy (5)
Orlando 1/2
11920 W Colonial Dr.	5/1/2016	8/9/2017		12,047		3,780		15,827		1,095		9.1	%		6.9	%		93,965	30		86.7	%
Atlanta 2
340 Franklin Gateway SE	5/24/2016	2/2/2018		8,766		2,900		11,666		759		8.7	%		6.5	%		66,137	29		84.5	%
Atlanta 1
5110 McGinnis Ferry Rd	5/25/2016	2/2/2018		10,467		2,704		13,171		864		8.3	%		6.6	%		71,968	29		83.8	%
Jacksonville 1
1939 East West Pkwy	8/12/2016	1/10/2018		8,686		2,947		11,633		709		8.2	%		6.1	%		59,847	27		90.9	%
Pittsburgh
6400 Hamilton Ave	5/11/2017	2/20/2018		7,414		1,976		9,390		688		9.3	%		7.3	%		48,024	18		33.7	%
Charlotte 1
9323 Wright Hill Rd	8/18/2016	8/31/2018		10,525		2,221		12,746		869		8.3	%		6.8	%		87,380	26		58.9	%
Total Owned Properties			$	57,905	$	16,528	$	74,433	$	4,984		8.6	%		6.7	%

(1)	Cash basis represents the sum of the funded principal balance of the loan (net of unamortized origination fees), cash consideration (inclusive of transaction costs), assumed liabilities, and net property working capital acquired, all as of the date of acquisition. Pittsburgh cash basis also includes $468k of construction costs incurred after the date of acquisition to bring the asset to a state that will allow it to generate its projected stabilized NOI.
(2)	Gross basis represents cash basis as defined above plus fair value appreciation recognized through the date of acquisition.
(3)	Net operating income (NOI) is a non- GAAP financial measure that excludes from operating income the impact of depreciation and general and administrative expense. Projected stabilized NOI represents NOI at an expected time in the future when operations at the facility have stabilized from lease up occupancy and rental rates.
(4)	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.
(5)	As of October28, 2018.

Third Quarter 201810

Jernigan Capital, Inc.

Schedule of Completed Projects

As of September 30, 2018

(unaudited, dollars in thousands)

	Location					Remaining
	(MSA)			Funded		Unfunded				Size		Date	Months	% Physical
Closing Date	Address	Commitment		Investment		Commitment (1)		Fair Value		(NRSF) (2)		Opened	Open (3)	Occupancy (3)
7/2/2015	Milwaukee
	420 W St Paul Ave		7,650		7,643		7		8,885		81,755	10/9/2016	25		57.5	%
7/31/2015	New Haven
	453 Washington Ave		6,930		6,807		123		8,693		64,225	12/16/2016	22		67.3	%
10/27/2015	Austin
	251 N AW Grimes Blvd		8,658		7,683		975		8,844		77,199	3/16/2017	19		67.6	%
1/4/2017	New York City 1
	1775 5th Ave		16,117		16,117		-		21,506		105,347	9/29/2017	13		53.9	%
8/14/2015	Raleigh
	1515 Sunrise Ave		8,792		8,351		441		8,514		60,171	3/8/2018	8		23.6	%
11/17/2016	Jacksonville 2
	45 Jefferson Rd		7,530		7,034		496		8,825		70,255	3/27/2018	7		29.5	%
1/31/2017	Atlanta 4
	4676 S Atlanta Rd		13,678		11,835		1,843		14,321		105,288	7/12/2018	4		8.5	%
2/24/2017	Orlando 3
	12709 E Colonial Dr		8,056		7,051		1,005		8,238		70,625	7/26/2018	3		10.8	%
4/20/2017	Denver 2
	3110 S Wadsworth Blvd		11,164		8,827		2,337		10,515		74,521	7/31/2018	3		8.9	%
6/29/2017	Boston 1
	329 Boston Post Rd		14,103		12,311		1,792		13,581		90,463	8/8/2018	3		9.1	%
4/14/2017	Louisville 1
	2801 N Hurstbourne Pky		8,523		6,029		2,494		7,260		66,526	8/15/2018	2		11.9	%
9/20/2016	Charlotte 2
	1010 E 10th St		12,888		10,052		2,836		11,093		76,985	8/30/2018	2		5.7	%
9/28/2017	Louisville 2
	3415 Bardstown Rd		9,940		7,220		2,720		8,644		74,304	8/31/2018	2		10.4	%
Total Completed Development Loans		$	134,029	$	116,960	$	17,069	$	138,919
3/2/2018	Miami 6
	590 NW 137th Ave		13,370		13,370		-		17,179		76,665	8/12/2016	27		78.2	%
3/2/2018	Miami 4
	1103 SW 3rd Ave		20,201		19,970		231		22,229		74,685	10/9/2016	25		77.5	%
3/2/2018	Miami 8
	2434 West 28th Lane		13,553		13,241		312		13,325		51,923	12/12/2016	23		83.3	%
3/2/2018	Miami 7
	18460 Pines Blvd		18,462		17,156		1,306		15,341		86,880	3/26/2018	7		27.9	%
3/2/2018	Miami 5
	4001 NW 77th Ave		17,738		16,492		1,246		13,788		77,075	8/13/2018	3		5.7	%
Total Completed Bridge Loans		$	83,324	$	80,229	$	3,095	$	81,862
Total Completed Projects		$	217,353

(1)	Commitment is fixed during underwriting at an amount deemed sufficient to cover interest carry and excess operating expenses over rental revenue during lease-up and deferred developer’s fees (if any) payable upon stabilization. Remaining unfunded commitment on completed projects is expected to be utilized primarily for such purposes. To the extent not needed for such purposes, such commitment will not be advanced.
(2)	The NRSF includes only climate controlled and non-climate controlled storage space. It does not include retail space, office space, non-covered RV space or parking spaces.
(3)	As of October28, 2018.

Third Quarter 201811

Schedule of Projects in Progress

As of September  30, 2018

(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)
1/18/2017	Atlanta 3
	1484 Northside Dr NW		14,115		4,751		9,364		4,642		92,935	Q4 2017	Q2 2019
2/24/2017	New Orleans
	2709 Severn Ave		12,549		7,273		5,276		7,943		86,765	Q3 2017	Q1 2019
2/27/2017	Atlanta 5
	56 Peachtree Valley Rd NE		17,492		11,458		6,034		12,190		84,988	Q3 2017	Q1 2019
3/1/2017	Fort Lauderdale
	5601 NE 14th Ave		9,952		4,854		5,098		5,389		79,279	Q1 2018	Q1 2019
3/1/2017	Houston
	1070 Brittmoore Rd		13,630		7,233		6,397		8,637		133,035	Q4 2017	Q4 2018
4/20/2017	Denver 1
	6206 W Alameda Ave		9,806		5,407		4,399		5,690		60,171	Q1 2018	Q1 2019
5/2/2017	Atlanta 6
	2033 Monroe Dr		12,543		9,521		3,022		11,364		81,170	Q2 2017	Q4 2018 (3)
5/2/2017	Tampa 2
	9185 Ulmerton Rd		8,091		3,440		4,651		3,409		71,400	Q1 2018	Q1 2019
5/19/2017	Tampa 3
	2460 S Falkenburg Rd		9,224		5,786		3,438		6,535		70,888	Q3 2017	Q4 2018
6/12/2017	Tampa 4
	3201 32nd Ave S		10,266		7,857		2,409		10,053		73,500	Q4 2017	Q4 2018 (3)
6/19/2017	Baltimore
	1835 Washington Blvd		10,775		7,476		3,299		8,037		84,700	Q3 2017	Q4 2018
6/28/2017	Knoxville
	7807 Kingston Pike		9,115		6,186		2,929		6,684		72,281	Q3 2017	Q4 2018
6/30/2017	New York City 2
	465 W 150th St		26,482		22,397		4,085		22,905		40,593	Q4 2017	Q4 2018
7/27/2017	Jacksonville 3
	2004 Edison Ave		8,096		5,472		2,624		6,496		68,050	Q4 2017	Q4 2018
8/30/2017	Orlando 4
	9001 Eastmar Commons		9,037		4,749		4,288		5,214		77,125	Q1 2018	Q1 2019
9/14/2017	Los Angeles 1
	943-959 W Hyde Park Blvd		28,750		8,180		20,570		7,838		120,038	Q1 2019	Q3 2020
9/14/2017	Miami 1
	4250 SW 8th St		14,657		5,940		8,717		5,576		69,175	Q2 2018	Q3 2019
10/12/2017	Miami 2
	880 W Prospect Rd		9,459		1,087		8,372		834		58,000	Q1 2019	Q2 2020
10/30/2017	New York City 3
	5203 Kennedy Blvd		14,701		4,222		10,479		3,752		68,660	Q4 2017	Q4 2019
11/16/2017	Miami 3
	120-132 NW 27th Ave		20,168		3,912		16,256		3,315		96,295	Q4 2018	Q1 2020
11/21/2017	Minneapolis 1
	2109 University Ave W		12,674		1,307		11,367		1,157		88,838	Q2 2018	Q3 2019
12/1/2017	Boston 2
	10 Hampshire Rd		8,771		2,313		6,458		2,271		76,710	Q4 2017	Q1 2019
12/15/2017	New York City 4
	6 Commerce Center Dr		10,591		1,469		9,122		1,312		78,425	Q2 2018	Q4 2019
12/27/2017	Boston 3
	19 Coolidge Hill Rd		10,174		2,519		7,655		2,333		62,700	Q4 2018	Q1 2020
12/28/2017	New York City 5
	375 River St		16,073		5,796		10,277		5,613		90,200	Q4 2018	Q4 2019
2/8/2018	Minneapolis 2
	3216 Winnetka Ave N		10,543		5,720		4,823		5,962		83,026	Q2 2018	Q1 2019
3/30/2018	Philadelphia
	550 Allendale Rd		14,338		4,691		9,647		4,374		69,383	Q2 2018	Q3 2019
4/6/2018	Minneapolis 3
	101 American Blvd West		12,883		2,681		10,202		2,532		86,075	Q3 2018	Q4 2019
5/1/2018	Miami 9
	10651 W Okeechobee Rd		12,421		2,626		9,795		2,369		70,538	Q1 2019	Q4 2019
5/15/2018	Atlanta 7
	2915 Webb Rd		9,418		117		9,301		23		76,519	Q3 2018	Q3 2019
5/23/2018	Kansas City
	510 Southwest Blvd		9,968		525		9,443		423		77,188	Q3 2018	Q4 2019

Third Quarter 201812

6/7/2018	Orlando 5
	7212 W Sand Lake Rd		12,969		-		12,969		-	76,147	Q4 2018	Q4 2019
6/12/2018	Los Angeles 2
	7855 Haskell Ave		9,298		4,518		4,780		4,484	116,022	Q3 2019	Q4 2020
Total Projects in Progress		$	419,029	$	171,483	$	247,546	$	179,356

(1)	Estimated C/O dates represent the Company’s best estimate as of September  30, 2018 based on project specific information learned through underwriting and communications with respective developers. These dates are subject to change due to unexpected project delays/efficiencies.
(2)	The NRSF includes only climate controlled and non-climate controlled storage space. It does not include retail space, office space, non-covered RV space or parking spaces.
(3)	This facility received a temporary C/O or C/O subsequent to September 30, 2018.

Third Quarter 201813

Schedule of Heitman JV Development Projects Completed and in Progress

As of September 30, 2018

(unaudited, dollars in thousands)

Development Projects Completed:

	Location					Remaining
	(MSA)			Funded		Unfunded				Size		Date	Months	% Physical
Closing Date	Address	Commitment		Investment		Commitment (1)		Fair Value		(NRSF) (2)		Opened	Open (3)	Occupancy (3)
7/19/2016	Jacksonville
	3211 San Pablo Rd S		8,127		7,422		705		11,677		80,621	7/26/2017	15		77.6	%
9/28/2016	Columbia
	401 Hampton St		9,199		8,715		484		9,741		70,935	8/23/2017	14		51.7	%
8/15/2016	Atlanta 2
	11220 Medlock Bridge Rd		8,772		8,121		651		8,878		70,189	9/14/2017	13		45.0	%
4/15/2016	Washington DC
	1325 Kenilworth Ave NE		17,269		16,713		556		19,771		90,115	9/25/2017	13		53.7	%
8/25/2016	Denver
	2255 E 104th Ave		11,032		10,123		909		12,610		85,575	12/14/2017	10		49.5	%
5/14/2015	Miami 1
	490 NW 36th St		13,867		12,039		1,828		14,354		75,770	2/23/2018	8		34.6	%
4/29/2016	Atlanta 1
	1801 Savoy Dr		10,223		9,575		648		10,767		71,150	4/12/2018	7		27.1	%
12/22/2016	Raleigh
	7710 Alexander Town Blvd		8,877		8,163		714		9,745		64,103	6/8/2018	5		16.1	%
9/25/2015	Fort Lauderdale
	812 NW 1st St		13,230		11,608		1,622		15,009		87,384	7/26/2018	3		10.9	%
Total Completed Development Projects		$	100,596	$	92,479	$	8,117	$	112,552

(1)	Commitment is fixed during underwriting at an amount deemed sufficient to cover interest carry and excess operating expenses over rental revenue during lease-up and deferred developer’s fees (if any) payable upon stabilization. Remaining unfunded commitment on completed projects is expected to be utilized primarily for such purposes. To the extent not needed for such purposes, such commitment will not be advanced.
(2)	The NRSF includes only climate controlled and non-climate controlled storage space. It does not include retail space, office space, non-covered RV space or parking spaces.
(3)	As of October28, 2018.

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 2
	1100 NE 79th St		14,849		13,622		1,227		15,202		74,113	Q2 2016	Q4 2018(3)
7/21/2016	New Jersey
	10 Central Ave		7,828		4,403		3,425		4,803		59,020	Q2 2017	Q4 2018
Total Development Projects in Progress		$	22,677	$	18,025	$	4,652	$	20,005
Total Heitman JV Investments		$	123,273	$	110,504	$	12,769	$	132,557

(1)	Estimated C/O dates represent the Company’s best estimate as of September  30, 2018 based on project specific information learned through underwriting and communications with respective developers. These dates are subject to change due to unexpected project delays/efficiencies.
(2)	The NRSF includes only climate controlled and non-climate controlled storage space. It does not include retail space, office space, non-covered RV space or parking spaces.
(3)	This facility received a temporary C/O or C/O subsequent to September 30, 2018.

Third Quarter 201814

Closed Investments by Geography

As of September  30, 2018

Third Quarter 201815

Capital Sourcesand Investment Uses

As of September  30, 2018

(dollars in millions)

Estimated Capital to be Used in Investing Activities (1)
Contractual investment obligations:
Development property investments	$	265
Bridge loan investments		3
Self-storage real estate venture		1
Total Committed Investments	$	269
Remaining Prospective Commitments per FY 2018 guidance:		40
Total to Fund Investments	$	309
Estimated Sources of Capital
Cash and Cash Equivalents as of September 30, 2018	$	43
Identified loan repayment (expected in Q4 2018)		17
Identified secured debt on one wholly-owned property (expected in Q4 2018)		8
Remaining credit facility capacity (2)		200
Remaining capital needs		41
Total Sources	$	309

(1)	Does not include financing spend, positive operating cash flow or any additional purchases of developers’ interest.
(2)	Assumes our ability to increase the capacity under our Credit Facility through the exercise of the accordion feature. As of September 30, 2018, $81.5 million was available for borrowing under the Credit Facility.

The company may use any combination of the following capital sources to fund its $41 million of remaining capital needs:

· Refinancing of JCAP mortgage indebtedness (49.9% profits interest and ROFR retained) - $60 million to $70 million

· Potential sales of current investments that JCAP does not wish to own or acquire - $20 million

· Series B preferred ATM issuances - $10 million

· Common stock issuances (ATM) - $20 million

· Secured debt on individual properties - $5 million to $10 million

· Joint venture financing proceeds - $5 million to $10 million

Timing of Funding $309 million of Remaining Commitments

Third Quarter 201816

Capital Structure

As of September  30, 2018

(dollars in millions)

Credit Facility Outstanding	$	-
Term Loans		25
Series A Preferred Stock		125
Series B Preferred Stock		39
Common Stock		374
Total Capital	$	563

Third Quarter 201817

Jernigan Capital, Inc.

Company Information

Corporate Headquarters	Trading Symbol	Investor Relations	Information Requests
6410 Poplar Avenue	Common shares: JCAP	6410 Poplar Avenue	To request an Investor Relations
Suite 650	7.00% Series B Preferred Stock: JCAP-	Suite 650	package or annual report, please
Memphis, TN 38119	PR B	Memphis, TN 38119	visit our website at
901.567.9510	Stock Exchange Listing	901.567.9510	www.jernigancapital.com
	New York Stock Exchange

Executive Management

Dean Jernigan	John A. Good
Executive Chairman	Chief Executive Officer
Jonathan Perry	David Corak
President and Chief Investment Officer	Senior Vice President of Corporate Finance
Kelly P. Luttrell
Senior Vice President, Chief Financial Officer, Treasurer and Corporate Secretary

Independent Directors

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

Equity Research Coverage

Baird Equity Research	B. Riley FBR
RJ Milligan	Tim Hayes
rjmilligan@rwbaird.com	timothyhayes@brileyfbr.com
Jefferies LLC	KeyBanc Capital Markets
Omotayo Okusanya	Todd M. Thomas
tokusanya@jefferies.com	tthomas@key.com
Raymond James & Associates
Jonathan Hughes
jonathan.hughes@raymondjames.com

Any opinions, estimates, forecasts or predictions regarding Jernigan Capital’s performance made by these analysts are theirs alone and do not represent opinions, estimates, forecasts or predictions of Jernigan Capital or its management. Jernigan Capital does not by its reference above or distribution imply its endorsement of or concurrence with such opinions, estimates, forecasts or predictions.

Third Quarter 201818