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 CorEnergy Announces Fiscal Year 2017 Results
   Wednesday, February 28, 2018 4:30:01 PM ET

CorEnergy Infrastructure Trust, Inc. ("CorEnergy" or the "Company") today announced financial results for the fiscal year ended December 31, 2017.

Fiscal Year 2017 Performance Summary

Fiscal Year 2017 financial highlights are as follows:

                                                                                                               For the Year Ended
                                                                                                                                                      December 31, 2017
                                                                                              --------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                Per Share
                                                                                                   Total                                                Basic             Diluted
                                                                                              --------------                                          --------                                          ----------------------
Net Income (Attributable to Common Stockholders)(1)                                           $ 24,648,802                                            $ 2.07                                                     $       2.07
NAREIT Funds from Operations (NAREIT FFO)(1)                                                  $ 46,308,969                                            $ 3.89                                                     $       3.59
Funds From Operations (FFO)(1)                                                                $ 46,046,781                                            $ 3.87                                                     $       3.57
Adjusted Funds From Operations (AFFO)(1)                                                      $ 50,536,194                                            $ 4.25                                                     $       3.81
Dividends Declared to Common Stockholders                                                                                                             $ 3.00
                                                                                                                                                                                                         

(1) Management uses AFFO as a measure of long-term sustainable operational performance. NAREIT FFO, FFO, and AFFO are non-GAAP measures. Reconciliations of NAREIT FFO, FFO and AFFO, as presented, to Net Income Attributable to CorEnergy Stockholders are included at the end of this press release. See Note 1 for additional information.

Recent Developments

-- Maintained dividend: Declared common stock dividend of $0.75 per share ($3.00 annualized) for the fourth quarter 2017, in line with the previous nine quarterly dividends

-- Building relationship with new tenant: Acquisition of Portland Terminal tenant, Arc Logistics, by Zenith Energy U.S. LP ("Zenith Energy") closed on December 21, 2017.

-- Last of BDC legacy portfolio rolling off: Received $7.6 million in cash proceeds, plus an interest in Arc Terminal Joliet Holdings, valued at $1.2 million for the Company’s pro-rata share of the sale of Lightfoot Partners to Zenith Energy

-- Increased interest in prolific Pinedale Field: Purchased from Prudential Insurance Group of America ("Prudential") its 18.95% minority interest in the Pinedale LGS for $32.9 million -- Prudential provided $41 million of 6.5% fixed rate debt, due December 2022, which was utilized to pay off the Pinedale LP credit facility balance and to complete the purchase of the minority interest

-- Received favorable PLR: Converted Omega Pipeline to a qualified REIT subsidiary, from a taxable REIT subsidiary (TRS) following the receipt of a private letter ruling (PLR) from the IRS

-- Increased activity at Fort Leonard Wood: Omega was selected for a Utility Energy Service Contract (UESC) at Fort Leonard Wood.

"CorEnergy exited 2017 in a much stronger position than we entered it. The energy downturn has enabled us to demonstrate the durability of our overall strategy and revenue model. CORR acquired the minority stake in the Pinedale LGS and sold our last remaining BDC investment. We strengthened our balance sheet by issuing perpetual preferred stock, upsizing our credit facility, and refinancing the asset level debt on the Pinedale LGS," said CorEnergy CEO Dave Schulte. "We believe CorEnergy is well positioned for additional growth in 2018, with over $155 million of liquidity and multiple acquisition opportunities in various stages of evaluation. The REIT model of infrastructure ownership is emerging as a flexible source of long-term capital for energy companies. CORR has the ability to own and lease assets in a passive financing, as well as in operating subsidiaries where the preponderance of assets are pipelines and storage terminals."

Dividend Declaration

Common Stock: A fourth quarter 2017 dividend of $0.75 per share (or $3.00 per share annualized) was declared for CorEnergy’s common stock. The dividend was payable on February 28, 2018, to stockholders of record on February 14, 2018.

Preferred Stock: For the Company’s 7.375% Series A Cumulative Redeemable Preferred Stock, a cash dividend of $0.4609375 per depositary share was declared. The preferred stock dividend, which equates to an annual dividend payment of $1.84375 per depositary share, was payable on February 28, 2018, to stockholders of record on February 14, 2018.

Portfolio Update

Grand Isle Gathering System: The tenant of the Grand Isle Gathering System, Energy XXI Gulf Coast, continues to make strides towards optimizing production while maintaining costs. The company recently announced its 2018 capital budget plan and anticipates drilling six wells this year. These wells are expected to be in the West Delta and South Timbalier fields, which are considered core properties by EXXI and partially served by our system.

Pinedale Liquids Gathering System: On December 29, 2017, we purchased the remaining 18.95% interest in Pinedale LP, from Prudential for approximately $32.9 million. Concurrently, Pinedale LP entered into an amended $41.0 million credit facility, with Prudential as the lender, for a fixed rate of 6.5% for five years.

CorEnergy received approximately $587,000 in participating rents from the utilization of the Pinedale LGS by Ultra Petroleum in 2017. The Company is further encouraged by the recent successes of its tenant in horizontal well drilling, and its plans to expand the program in 2018.

Portland Terminal: On December 21, 2017, Zenith Energy closed on its acquisition of the parent company of the Portland Terminal tenant, Arc Logistics. Pursuant to the Portland Terminal Lease, the tenant maintains the option to repurchase the asset from CorEnergy, subject to a 90-day notice, as well as the right to terminate the lease on the fifth and tenth anniversaries of the agreement. CorEnergy provided Zenith Energy an extension of the deadline for notification of an exercise of its option to terminate the lease agreement on its fifth anniversary to August 1, 2018, from February 1, 2018.

MoGas Pipeline: MoGas continues to explore means to offset the decline in revenue from the amended Spire contract, announced in March 2017. MoGas currently anticipates filing a rate case with the Federal Energy Regulatory Commission (FERC) in the second quarter of 2018.

Omega Pipeline: In November 2017, Omega was selected for a UESC at Fort Leonard Wood in south-central Missouri. The pipeline currently serves that United States Army post with natural gas distribution services and the UESC program will provide comprehensive gas, electricity and water efficiency improvements. CorEnergy believes this initiative could last four to five years and produce incremental earnings.

During 2017, the Company received a private letter ruling from the IRS which qualified the revenue from Omega’s long-term contract with Fort Leonard Wood as REIT-qualifying rent income from real property. Effective December 31, 2017, Omega was converted to a qualified REIT subsidiary, from a taxable REIT subsidiary.

Lightfoot Partners: In connection with the Arc Logistics acquisition by Zenith Energy, we received our pro-rata share of the proceeds upon the closing of the transaction for our holdings in Lightfoot. Total cash proceeds of $7.6 million were net of approximately $1.2 million related to a required reinvestment in Arc Terminal Joliet Holdings. As of December 31, 2017, our remaining private company interests in Lightfoot and Arc Terminal Joliet Holdings were valued at approximately $3.0 million.

Outlook

CorEnergy believes acquisitions enhance the stability of its operations, reducing risk to existing stockholders, because of the diversification benefits and added potential for dividend growth. The Company is evaluating a broad set of infrastructure opportunities and targets transacting on one to two acquisitions per year, with a target range of $50 to $250 million per project. CorEnergy intends to finance these acquisitions through the use of capacity on its revolver, partnerships with co-investors, portfolio level debt, and, if beneficial to existing stockholders, prudent preferred and/or common equity issuances. There can be no assurance that any of these acquisition opportunities will result in consummated transactions.

CorEnergy intends to continue paying quarterly dividends of $0.75 per share ($3.00 annualized). The Company targets revenue growth of 1-3% annually from existing contracts through inflation-based and participating rent adjustments and additional growth from acquisitions. Dependent upon the level of revenue growth achieved, CorEnergy will assess its ability to responsibly grow its dividend above current levels.

Fiscal Year 2017 Earnings Conference Call

CorEnergy will host a conference call on Thursday, March 1, 2018, at 1:00 p.m. Central Time to discuss its financial results. Please dial into the call at 877-407-8035 (for international, 1-201-689-8035) approximately five to ten minutes prior to the scheduled start time. The call will also be webcast in a listen-only format. A link to the webcast will be accessible at corenergy.reit.

A replay of the call will be available until 1:00 p.m. Central Time on April 1, 2018 by dialing 877-481-4010 (for international, 1-919-882-2331). The Conference ID is 25600. A replay of the conference call will also be available on the Company’s website.

About CorEnergy Infrastructure Trust, Inc.

CorEnergy Infrastructure Trust, Inc. (CORR, CORRPRA ), is a real estate investment trust (REIT) that owns essential energy assets, such as pipelines, storage terminals, and transmission and distribution assets. We receive long-term contracted revenue from operators of our assets, primarily under triple-net participating leases. For more information, please visit corenergy.reit.

Forward-Looking Statements

This press release contains certain statements that may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although CorEnergy believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in CorEnergy’s reports that are filed with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required by law, CorEnergy does not assume a duty to update any forward-looking statement. In particular, any distribution paid in the future to our stockholders will depend on the actual performance of CorEnergy, its costs of leverage and other operating expenses and will be subject to the approval of CorEnergy’s Board of Directors and compliance with leverage covenants.

Notes

(1)NAREIT FFO represents net income (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable operating property, impairment losses of depreciable properties, real estate-related depreciation and amortization (excluding amortization of deferred financing costs or loan origination costs) and after adjustments for unconsolidated partnerships and non-controlling interests. Adjustments for non-controlling interests are calculated on the same basis. FFO as we have presented it here, is derived by further adjusting NAREIT FFO for distributions received from investment securities, income tax expense (benefit) from investment securities, net distributions and dividend income and net realized and unrealized gain or loss on other equity securities. CorEnergy defines AFFO as FFO Adjusted for Securities Investment plus (gain) loss on extinguishment of debt, provision for loan losses, net of tax, transaction costs, amortization of debt issuance costs, amortization of deferred lease costs, accretion of asset retirement obligation, amortization of above market leases, income tax expense (benefit) unrelated to securities investments, non-cash costs associated with derivative instruments, and certain costs of a nonrecurring nature, less maintenance, capital expenditures (if any), amortization of debt premium, and other adjustments as deemed appropriate by Management. Reconciliations of NAREIT FFO, FFO Adjusted for Securities Investments and AFFO to Net Income Attributable to CorEnergy Stockholders are included in the additional financial information attached to this press release.

 
                                                                                                                   Consolidated Balance Sheets
                                                                                                                        
                                                                                                                            December 31, 2017                                                                                       December 31, 2016
                                                                                                                -----------------------------------------                                                               -----------------------------------------
Assets
  Leased property, net of accumulated depreciation of $72,155,753 and                                                 $ 465,956,467                                                                                           $ 489,258,369
  $52,219,717
  Property and equipment, net of accumulated depreciation of                                                            113,158,872                                                                                             116,412,806
  $12,643,636 and $9,292,712
  Financing notes and related accrued interest receivable, net of                                                         1,500,000                                                                                               1,500,000
  reserve of $4,100,000 and$4,100,000
  Other equity securities, at fair value                                                                                  2,958,315                                                                                               9,287,209
  Cash and cash equivalents                                                                                              15,787,069                                                                                               7,895,084
  Deferred rent receivable                                                                                               22,060,787                                                                                              14,876,782
  Accounts and other receivables                                                                                          3,786,036                                                                                               4,538,884
  Deferred costs, net of accumulated amortization of $623,764 and                                                         3,504,916                                                                                               3,132,050
  $2,261,151
  Prepaid expenses and other assets                                                                                         742,154                                                                                                 354,230
  Deferred tax asset, net                                                                                                 2,244,629                                                                                               1,758,289
  Goodwill                                                                                                                1,718,868                                                                            1,718,868  
                                                                                                                ----------------------------------------                                                                ----------------------------------------
    Total Assets                                                                                                      $ 633,418,113                                                                        $ 650,732,571  
                                                                                                                ======= =========== ====================                                                                ======= =========== ====================
Liabilities and Equity
                                                                                                                         40,745,354                                                                                              89,387,985
  Secured credit facilities, net of debt issuance costs of $254,646
  and $212,592
  (including $0 and $8,860,577 with related party)
                                                                                                                        112,032,083                                                                                             111,244,895
  Unsecured convertible senior notes, net of discount and debt
  issuance costs of
  $1,967,917 and $2,755,105
  Asset retirement obligation                                                                                             9,170,493                                                                                              11,882,943
  Accounts payable and other accrued liabilities                                                                          2,333,782                                                                                               2,416,283
  Management fees payable                                                                                                 1,748,426                                                                                               1,735,024
  Income tax liability                                                                                                    2,204,626                                                                                          --
  Unearned revenue                                                                                                        3,397,717                                                                              155,961  
                                                                                                                ----------------------------------------                                                                ----------------------------------------
    Total Liabilities                                                                                                 $ 171,632,481                                                                        $ 216,823,091  
                                                                                                                ------- ----------- --------------------                                                                ------- ----------- --------------------
Equity
                                                                                                                      $ 130,000,000                                                                                           $  56,250,000
  Series A Cumulative Redeemable Preferred Stock 7.375%,
  $130,000,000 and
  $56,250,000 liquidation preference ($2,500
  per share, $0.001 par value), 10,000,000
  authorized; 52,000
  and 22,500 issued and outstanding at December 31, 2017 and
  December
  31, 2016, respectively
                                                                                                                             11,916                                                                                                  11,886
  Capital stock, non-convertible, $0.001 par value; 11,915,830 and
  11,886,216 shares
  issued and outstanding at December 31, 2017
  and December 31, 2016 (100,000,000
  shares authorized)
  Additional paid-in capital                                                                                            331,773,716                                                                                             350,217,746
  Accumulated other comprehensive loss                                                                               --                                                                              (11,196 )
                                                                                                                ----------------------------------------                                                                ----------------------------------------
    Total CorEnergy Equity                                                                                              461,785,632                                                                          406,468,436  
                                                                                                                ----------------------------------------                                                                ----------------------------------------
  Non-controlling Interest                                                                                           --                                                                           27,441,044  
                                                                                                                ----------------------------------------                                                                ----------------------------------------
    Total Equity                                                                                                        461,785,632                                                                          433,909,480  
                                                                                                                ----------------------------------------                                                                ----------------------------------------
    Total Liabilities and Equity                                                                                      $ 633,418,113                                                                        $ 650,732,571  
                                                                                                                ======= =========== ====================                                                                ======= =========== ====================
                                                                                                                                                                                                                                             
 
                                                                                                                                 Consolidated Statements of Income and Comprehensive Income
                                                                                                                                                                 
                                                                                                                                                                                                      For the Years Ended December 31,
                                                                                                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                  2017                                                                              2016                                                                              2015
                                                                                                                ----------------------------------------                                          ----------------------------------------                                          ----------------------------------------
Revenue
  Lease revenue                                                                                                       $ 68,803,804                                                                      $ 67,994,130                                                                      $ 48,086,072
  Transportation and distribution revenue                                                                               19,945,573                                                                        21,094,112                                                                        14,345,269
  Financing revenue                                                                                                 --                                                                           162,344                                                                         1,697,550
  Sales revenue                                                                                                     --                                                 --                                                      7,160,044  
                                                                                                                ---------------------------------------                                           ---------------------------------------                                           ---------------------------------------
    Total Revenue                                                                                                       88,749,377                                                     89,250,586                                                     71,288,935  
                                                                                                                ---------------------------------------                                           ---------------------------------------                                           ---------------------------------------
Expenses
  Transportation and distribution expenses                                                                               6,729,707                                                                         6,463,348                                                                         4,609,725
  Cost of Sales                                                                                                     --                                                                    --                                                                         2,819,212
  General and administrative                                                                                            10,786,497                                                                        12,270,380                                                                         9,745,704
  Depreciation, amortization and ARO accretion expense                                                                  24,047,710                                                                        22,522,871                                                                        18,766,551
  Provision for loan loss and disposition                                                                           --                                                      5,014,466                                                     13,784,137  
                                                                                                                ---------------------------------------                                           ---------------------------------------                                           ---------------------------------------
    Total Expenses                                                                                                      41,563,914                                                     46,271,065                                                     49,725,329  
                                                                                                                ---------------------------------------                                           ---------------------------------------                                           ---------------------------------------
Operating Income                                                                                                      $ 47,185,463                                                   $ 42,979,521                                                   $ 21,563,606  
                                                                                                                ------- ---------- --------------------                                           ------- ---------- --------------------                                           ------- ---------- --------------------
Other Income (Expense)
  Net distributions and dividend income                                                                               $    680,091                                                                      $  1,140,824                                                                      $  1,270,755
  Net realized and unrealized gain (loss) on other equity securities                                                     1,531,827                                                                           824,482                                                                        (1,063,613 )
  Interest expense                                                                                                     (12,378,514 )                                                                     (14,417,839 )                                                                      (9,781,184 )
  Loss on extinguishment of debt                                                                                          (336,933 )                                                                  --                                                 --  
                                                                                                                ---------------------------------------                                           ---------------------------------------                                           ---------------------------------------
    Total Other Expense                                                                                                (10,503,529 )                                                                     (12,452,533 )                                                                      (9,574,042 )
                                                                                                                ---------------------------------------                                           ---------------------------------------                                           ---------------------------------------
Income before income taxes                                                                                              36,681,934                                                     30,526,988                                                     11,989,564  
                                                                                                                ---------------------------------------                                           ---------------------------------------                                           ---------------------------------------
Taxes
  Current tax expense (benefit)                                                                                          2,831,658                                                                          (313,107 )                                                                         922,010
  Deferred tax benefit                                                                                                    (486,340 )                                                                        (151,313 )                                                                      (2,869,563 )
                                                                                                                ---------------------------------------                                           ---------------------------------------                                           ---------------------------------------
    Income tax expense (benefit), net                                                                                    2,345,318                                                       (464,420 )                                                                      (1,947,553 )
                                                                                                                ---------------------------------------                                           ---------------------------------------                                           ---------------------------------------
Net Income                                                                                                              34,336,616                                                                        30,991,408                                                                        13,937,117
  Less: Net Income attributable to non-controlling interest                                                              1,733,826                                                      1,328,208                                                      1,617,206  
                                                                                                                ---------------------------------------                                           ---------------------------------------                                           ---------------------------------------
Net Income attributable to CorEnergy Stockholders                                                                     $ 32,602,790                                                                      $ 29,663,200                                                                      $ 12,319,911
  Preferred dividend requirements                                                                                        7,953,988                                                      4,148,437                                                      3,848,828  
                                                                                                                ---------------------------------------                                           ---------------------------------------                                           ---------------------------------------
Net Income attributable to Common Stockholders                                                                        $ 24,648,802                                                   $ 25,514,763                                                   $  8,471,083  
                                                                                                                ======= ========== ====================                                           ======= ========== ====================                                           ======= ========== ====================
                                                                                                                                                                                                                                                                                     
  Net Income                                                                                                          $ 34,336,616                                                                      $ 30,991,408                                                                      $ 13,937,117
  Other comprehensive income (loss):
   Changes in fair value of qualifying hedges / AOCI attributable to                                                        11,196                                                                          (201,993 )                                                                        (262,505 )
   CorEnergy stockholders
   Changes in fair value of qualifying hedges / AOCI attributable to                                                         2,617                                                        (47,226 )                                                                         (61,375 )
   non-controlling interest
                                                                                                                -----------------  --------------------                                           -----------------  --------------------                                           -----------------  --------------------
    Net Change in Other Comprehensive Income (Loss)                                                                   $     13,813                                                   $   (249,219 )                                                                    $   (323,880 )
                                                                                                                ------- ---------- --------------------                                           ------- ---------- --------------------                                                   ---------- --------------------
Total Comprehensive Income                                                                                              34,350,429                                                                        30,742,189                                                                        13,613,237
  Less: Comprehensive income attributable to non-controlling interest                                                    1,736,443                                                      1,280,982                                                      1,555,831  
                                                                                                                ---------------------------------------                                           ---------------------------------------                                           ---------------------------------------
Comprehensive Income attributable to CorEnergy Stockholders                                                           $ 32,613,986                                                   $ 29,461,207                                                   $ 12,057,406  
                                                                                                                ======= ========== ====================                                           ======= ========== ====================                                           ======= ========== ====================
  Earnings Per Common Share:
    Basic                                                                                                             $       2.07                                                                      $       2.14                                                                      $       0.79
    Diluted                                                                                                           $       2.07                                                                      $       2.14                                                                      $       0.79
  Weighted Average Shares of Common Stock Outstanding:
    Basic                                                                                                               11,900,516                                                                        11,901,985                                                                        10,685,892
    Diluted                                                                                                             11,900,516                                                                        11,901,985                                                                        10,685,892
  Dividends declared per share                                                                                        $      3.000                                                                      $      3.000                                                                      $      2.750
                                                                                                                                                                                                                                                                                                        
 
                                                                                                                                                   Consolidated Statements of Cash Flow
                                                                                                                                                                        For the Years Ended December 31,
                                                                                                                  ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                      2017                                            2016                                            2015
                                                                                                                  --------------------------------------------                                          --------------------------------------------                                          --------------------------------------------
Operating Activities
  Net Income                                                                                                            $     34,336,616                                                                      $     30,991,408                                                                      $     13,937,117
  Adjustments to reconcile net income to net cash provided by
  operating activities:
    Deferred income tax, net                                                                                                    (486,340 )                                                                            (151,313 )                                                                          (2,869,563 )
    Depreciation, amortization and ARO accretion                                                                              25,708,891                                                                            24,548,350                                                                            20,662,297
    Provision for loan loss                                                                                               --                                                                             5,014,466                                                                            13,784,137
    Loss on extinguishment of debt                                                                                               336,933                                                                        --                                                                        --
    Non-cash settlement of accounts payable                                                                                     (221,609 )                                                                      --                                                                        --
    Loss on sale of equipment                                                                                                      4,203                                                                        --                                                                        --
    Gain on repurchase of convertible debt                                                                                --                                                                               (71,702 )                                                                      --
    Net distributions and dividend income, including recharacterization                                                          148,649                                                                              (117,004 )                                                                            (371,323 )
    of income
    Net realized and unrealized (gain) loss on other equity securities                                                        (1,531,827 )                                                                            (781,153 )                                                                           1,063,613
    Unrealized gain on derivative contract                                                                                --                                                                               (75,591 )                                                                             (70,333 )
    Settlement of derivative contract                                                                                     --                                                                               (95,319 )                                                                      --
    Common stock issued under directors compensation plan                                                                         67,500                                                                                60,000                                                                                90,000
    Changes in assets and liabilities:
      Increase in deferred rent receivables                                                                                   (7,184,005 )                                                                          (8,360,036 )                                                                          (5,016,950 )
      Decrease (increase) in accounts and other receivables                                                                      752,848                                                                              (174,390 )                                                                           2,743,858
      Decrease (increase) in financing note accrued interest receivable                                                   --                                                                                95,114                                                                              (355,208 )
      (Increase) decrease in prepaid expenses and other assets                                                                   (16,717 )                                                                             329,735                                                                               (37,462 )
      Increase (decrease) in management fee payable                                                                               13,402                                                                               (28,723 )                                                                             599,348
      Decrease in accounts payable and other accrued liabilities                                                                (225,961 )                                                                            (231,151 )                                                                            (847,683 )
      Increase in income tax liability                                                                                         2,204,626                                                                        --                                                                        --
      Increase (decrease) in unearned revenue                                                                                  2,884,362                                                            155,961                                                           (711,230 )
                                                                                                                  -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------
  Net cash provided by operating activities                                                                             $     56,791,571                                                   $     51,108,652                                                   $     42,600,618  
                                                                                                                  ------- -------------- --------------------                                           ------- -------------- --------------------                                           ------- -------------- --------------------
Investing Activities
    Proceeds from sale of other equity securities                                                                              7,591,166                                                                        --                                                                        --
    Proceeds from assets and liabilities held for sale                                                                    --                                                                               644,934                                                                             7,678,246
    Deferred lease costs                                                                                                  --                                                                        --                                                                              (336,141 )
    Acquisition expenditures                                                                                              --                                                                        --                                                                          (251,513,344 )
    Purchases of property and equipment, net                                                                                    (116,595 )                                                                            (191,926 )                                                                            (138,918 )
    Proceeds from asset foreclosure and sale                                                                              --                                                                               223,451                                                                        --
    Increase in financing notes receivable                                                                                --                                                                              (202,000 )                                                                            (524,037 )
    Principal payment on financing note receivable                                                                        --                                                                        --                                                                               100,000
    Return of capital on distributions received                                                                                  120,906                                                              4,631                                                            121,578  
                                                                                                                  -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------
  Net cash provided by (used in) investing activities                                                                   $      7,595,477                                                   $        479,090                                                   $   (244,612,616 )
                                                                                                                  ------- -------------- --------------------                                           ------- -------------- --------------------                                           ------- -------------- --------------------
Financing Activities
    Debt financing costs                                                                                                      (1,462,741 )                                                                            (193,000 )                                                                          (1,617,991 )
    Net offering proceeds on Series A preferred stock                                                                         71,161,531                                                                        --                                                                            54,210,476
    Net offering proceeds on common stock                                                                                 --                                                                        --                                                                            73,184,679
    Net offering proceeds on convertible debt                                                                             --                                                                        --                                                                           111,262,500
    Repurchases of common stock                                                                                           --                                                                            (2,041,851 )                                                                      --
    Repurchases of convertible debt                                                                                       --                                                                              (899,960 )                                                                      --
    Dividends paid on Series A preferred stock                                                                                (8,227,734 )                                                                          (4,148,437 )                                                                          (3,503,125 )
    Dividends paid on common stock                                                                                           (34,731,892 )                                                                         (34,896,727 )                                                                         (28,528,224 )
    Distributions to non-controlling interest                                                                                 (1,833,650 )                                                                      --                                                                            (2,486,464 )
    Advances on revolving line of credit                                                                                      10,000,000                                                                            44,000,000                                                                            45,392,332
    Payments on revolving line of credit                                                                                     (54,000,000 )                                                                      --                                                                           (77,533,609 )
    Proceeds from term debt                                                                                                   41,000,000                                                                        --                                                                            45,000,000
    Principal payments on secured credit facilities                                                                          (45,600,577 )                                                                         (60,131,423 )                                                                          (6,328,000 )
    Purchase of non-controlling interest                                                                                     (32,800,000 )                                                                      --                                                     --  
                                                                                                                  -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------
    Net cash (used in) provided by financing activities                                                                 $    (56,495,063 )                                                                    $    (58,311,398 )                                                                    $    209,052,574  
                                                                                                                  ------- -------------- --------------------                                           ------- -------------- --------------------                                           ------- -------------- --------------------
  Net Change in Cash and Cash Equivalents                                                                               $      7,891,985                                                                      $     (6,723,656 )                                                                    $      7,040,576
  Cash and Cash Equivalents at beginning of period                                                                             7,895,084                                                         14,618,740                                                          7,578,164  
                                                                                                                  -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------
  Cash and Cash Equivalents at end of period                                                                            $     15,787,069                                                   $      7,895,084                                                   $     14,618,740  
                                                                                                                  ======= ============== ====================                                           ======= ============== ====================                                           ======= ============== ====================
                                                                                                                                                                                                                                                                                               
Supplemental Disclosure of Cash Flow Information
  Interest paid                                                                                                         $     10,780,150                                                                      $     12,900,901                                                                      $      7,873,333
  Income taxes paid (net of refunds)                                                                                             199,772                                                                                37,736                                                                               747,406
                                                                                                                                                                                                                                                                                               
Non-Cash Investing Activities
  Investment in other equity securities                                                                                 $     (1,161,034 )                                                                    $ --                                                                      $ --
  Change in accounts and other receivables                                                                                --                                                                              (450,000 )                                                                      --
  Change in accounts payable and accrued expenses related to                                                              --                                                                        --                                                                              (614,880 )
  acquisition expenditures
                                                                                                                          --                                                                        --                                                                               (39,248 )
  Change in accounts payable and accrued expenses related to
  issuance of
  financing and other notes receivable
                                                                                                                          --                                                                            (1,776,549 )                                                                      --
  Net change in Assets Held for Sale, Property and equipment,
  Prepaid expenses
  and other assets, Accounts payable and other
  accrued liabilities and Liabilities
  held for sale
                                                                                                                                                                                                                                                                                               
Non-Cash Financing Activities
  Change in accounts payable and accrued expenses related to the                                                        $ --                                                                      $ --                                                                      $        (72,685 )
  issuance of common equity
  Change in accounts payable and accrued expenses related to debt                                                                255,037                                                                        --                                                                               (43,039 )
  financing costs
  Reinvestment of distributions by common stockholders in additional                                                             962,308                                                                               815,889                                                                               817,915
  common shares
                                                                                                                                                                                                                                                                                                                      
 
                                                                                                                                                                                                                                     NAREIT FFO, FFO Adjusted for Securities Investment and AFFO
                                                                                                                                                                                                                                     Reconciliation (Unaudited)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                               For the Years Ended December 31,
                                                                                                                                                                                                                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                 2017                                        2016                                        2015
                                                                                                                                                                                                                                                                               ----------------------------------------                                          ----------------------------------------                                          ----------------------------------------
Net Income attributable to CorEnergy Stockholders                                                                                                                                                                                                                                                                                     $ 32,602,790                                                                      $ 29,663,200                                                                      $ 12,319,911
Less:
  Preferred Dividend Requirements                                                                                                                                                                                                                                                                                        7,953,988                                                      4,148,437                                                      3,848,828  
                                                                                                                                                                                                                                                                               ---------------------------------------                                           ---------------------------------------                                           ---------------------------------------
  Net Income attributable to Common Stockholders                                                                                                                                                                                                                                                                                     $ 24,648,802                                                                      $ 25,514,763                                                                      $  8,471,083
Add:
  Depreciation                                                                                                                                                                                                                                                                                       23,292,713                                                                        21,704,275                                                                        18,351,011
Less:
                                                                                                                                                                                                                                                                                          1,632,546                                                      1,645,819                                                      1,645,819  
  Non-Controlling Interest attributable to NAREIT FFO reconciling
  items                   
                                                                                                                                                                                                                                                                               -----------------  --------------------                                           -----------------  --------------------                                           -----------------  --------------------
NAREIT funds from operations (NAREIT FFO)                                                                                                                                                                                                                                                                                     $ 46,308,969                                                                      $ 45,573,219                                                                      $ 25,176,275
Add:
  Distributions received from investment securities                                                                                                                                                                                                                                                                                          949,646                                                                         1,028,452                                                                         1,021,010
  Income tax expense (benefit) from investment securities                                                                                                                                                                                                                                                                                        1,000,084                                                                           760,036                                                                          (196,270 )
Less:
  Net distributions and dividend income                                                                                                                                                                                                                                                                                          680,091                                                                         1,140,824                                                                         1,270,755
  Net realized and unrealized gain (loss) on other equity securities                                                                                                                                                                                                                                                                                        1,531,827                                                        824,482                                                     (1,063,613 )
                                                                                                                                                                                                                                                                               ---------------------------------------                                           ---------------------------------------                                           ---------------------------------------
Funds from operations adjusted for securities investments (FFO)                                                                                                                                                                                                                                                                                     $ 46,046,781                                                                      $ 45,396,401                                                                      $ 25,793,873
Add:
  Loss of extinguishment of debt                                                                                                                                                                                                                                                                                          336,933                                                                    --                                                                    --
  Provision for loan losses, net of tax                                                                                                                                                                                                                                                                                   --                                                                         4,409,359                                                                        12,526,701
  Transaction costs                                                                                                                                                                                                                                                                                          592,068                                                                           520,487                                                                           870,128
  Amortization of debt issuance costs                                                                                                                                                                                                                                                                                        1,661,181                                                                         2,025,478                                                                         1,822,760
  Amortization of deferred lease costs                                                                                                                                                                                                                                                                                           91,932                                                                            91,932                                                                            76,498
  Accretion of asset retirement obligation                                                                                                                                                                                                                                                                                          663,065                                                                           726,664                                                                           339,042
  Amortization of above market leases                                                                                                                                                                                                                                                                                   --                                                                    --                                                                            72,987
  Non-cash (gain) loss associated with derivative instruments                                                                                                                                                                                                                                                                                           33,763                                                                           (75,591 )                                                                         (70,333 )
Less:
  Non-cash settlement of accounts payable                                                                                                                                                                                                                                                                                          221,609                                                                    --                                                                    --
  Income tax (expense) benefit                                                                                                                                                                                                                                                                                       (1,345,234 )                                                                         619,349                                                                           493,847
  EIP Lease Adjustment (1)                                                                                                                                                                                                                                                                                   --                                                                    --                                                                           542,809
  Non-Controlling Interest attributable to AFFO reconciling items                                                                                                                                                                                                                                                                                           13,154                                                         37,113                                                         88,645  
                                                                                                                                                                                                                                                                               ---------------------------------------                                           ---------------------------------------                                           ---------------------------------------
Adjusted funds from operations (AFFO)                                                                                                                                                                                                                                                                                     $ 50,536,194                                                   $ 52,438,268                                                   $ 40,306,355  
                                                                                                                                                                                                                                                                               ======= ========== ====================                                           ======= ========== ====================                                           ======= ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Weighted Average Shares of Common Stock Outstanding:
    Basic                                                                                                                                                                                                                                                                                       11,900,516                                                                        11,901,985                                                                        10,685,892
    Diluted                                                                                                                                                                                                                                                                                       15,355,061                                                                        15,368,370                                                                        12,461,733
NAREIT FFO attributable to Common Stockholders
    Basic                                                                                                                                                                                                                                                                                     $       3.89                                                                      $       3.83                                                                      $       2.36
    Diluted (2)                                                                                                                                                                                                                                                                                     $       3.59                                                                      $       3.54                                                                      $       2.35
FFO attributable to Common Stockholders
    Basic                                                                                                                                                                                                                                                                                     $       3.87                                                                      $       3.81                                                                      $       2.41
    Diluted (2)                                                                                                                                                                                                                                                                                     $       3.57                                                                      $       3.53                                                                      $       2.40
AFFO attributable to Common Stockholders
    Basic                                                                                                                                                                                                                                                                                     $       4.25                                                                      $       4.41                                                                      $       3.77
    Diluted (3)                                                                                                                                                                                                                                                                                     $       3.81                                                                      $       3.93                                                                      $       3.56
(1)   Based on the economic return to CorEnergy resulting from the
                         sale of our 40 percent undivided interest in EIP, we determined
                         that it was appropriate to eliminate the portion of EIP lease
                         income attributable to return of capital, as a means to more
                         accurately reflect the EIP lease revenue contribution to our
                         sustainable AFFO. We believe that the portion of the EIP lease
                         revenue attributable to return of capital, unless adjusted,
                         overstates our distribution-paying capabilities and is not
                         representative of sustainable EIP income over the life of the
                         lease. We completed the sale of EIP on April 1, 2015.
(2)                      Diluted per share calculations include dilutive adjustments for
                         convertible note interest expense, discount amortization and
                         deferred debt issuance amortization.
(3)                      Diluted per share calculations include a dilutive adjustment
                         for convertible note interest expense.
                          

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20180228006529r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20180228006529/en/

SOURCE: CorEnergy Infrastructure Trust, Inc.

CorEnergy Infrastructure Trust, Inc. 
Investor Relations 
Lesley Schorgl, 877-699-CORR (2677) 
info@corenergy.reit


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