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