Jernigan Capital — Investor Presentation (September 2019)
31 slides from Jernigan Capital's investor presentation, Sep 3, 2019
Slide 1: Investor Presentation September 2019
September 2019 Investor Presentation INVESTOR PRESENTATION September 2019 JERNIGAN CAPITAL 6410 Poplar Ave, Suite 650 Memphis, TN 38119
Slide 2: Safe Harbor Disclosure Regarding Forward-Looking Statements
September 2019 Investor Presentation SAFE HARBOR DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS This presentation includes "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 and other federal securities
Slide 3: Introduction: Our Mission
September 2019 Investor Presentation INTRODUCTION OUR MISSION OUR TICKER SYMBOL Jernigan Capital provides debt and equity capital to private developers, owners and operators of self-storage facilities with a view toward eventual outright ownership of facilities we finance. Our mission is to maximize
Slide 4: Recent Events
September 2019 Investor Presentation RECENT EVENTS 4 .. $94 million committed investments, comprised of six development investments and seven acquisitions of developers’ interests (1) .. Investment activity since the quarter ended June 30, 2019: .. 7/2/2019: The Company entered into an agreement wit
Slide 5: Management Company Internalization Update
September 2019 Investor Presentation MANAGEMENT COMPANY INTERNALIZATION UPDATE 5 .. Management Agreement between JCAP and the Manager sets forth a process for internalization that begins no later than October 3, 2019 – that process has been well described in public filings. .. If internalization occ
Slide 6: Key Highlights
September 2019 Investor Presentation .. $250+ million pipeline of investments in underwriting .. Increasing short-term opportunity to acquire full ownership of existing projects as majority of JCAP-financed projects are completed and are in lease-up .. Bridge and other creative financing structures
Slide 7: Experienced and Aligned Senior Management Team
September 2019 Investor Presentation EXPERIENCED AND ALIGNED SENIOR MANAGEMENT TEAM ~8.0% Management and Board Ownership Creates Significant Alignment of Interests .. 32+ years in the self- storage industry .. Invested over $3 billion of capital in the self- storage industry .. CEO of CubeSmart from
Slide 8: JCAP's Competitive Advantage
September 2019 Investor Presentation JCAP’S COMPETITIVE ADVANTAGE CREATIVE INVESTMENT STRUCTURES PROVIDE ONE-STOP SHOP .. Development financing of up to 97% loan-to-cost (“LTC”). Banks offer 60% to 65% .. JCAP can offer flexible financing structures on both development projects and projects in lease
Slide 9: High ROI Business Model Executed in Top Self-Storage Markets
September 2019 Investor Presentation HIGH ROI BUSINESS MODEL EXECUTED IN TOP SELF-STORAGE MARKETS ATTRACTIVE RISK-ADJUSTED RETURNS THROUGH EQUITY PARTICIPATION DEVELOPMENT INVESTMENTS Ground-up Construction | Major Redevelopment .. Focus on programmatic self-storage development of Generation V facil
Slide 10: Development Project Investment Timeline
September 2019 Investor Presentation DEVELOPMENT PROJECT INVESTMENT TIMELINE .. Below is a timeline for a typical development project. JCAP investment targets include: .. Targeted investment yield of at least 300bps above prevailing stabilized cap rate .. Investment equal to 90-97% of total cost wit
Slide 11: Selective Site Selection
September 2019 Investor Presentation SELECTIVE SITE SELECTION (1) Represents closed loan commitments and wholly-owned property investments as of 8/31/19, including closed investments that have been repaid. $11.4 billion INVESTMENTS REVIEWED $1.4 billion TERM SHEETS ISSUED $1.0 billion SIGNED TERM SH
Slide 12: High Quality Self-Storage Properties Located in Attractive Markets
September 2019 Investor Presentation HIGH QUALITY SELF-STORAGE PROPERTIES LOCATED IN ATTRACTIVE MARKETS Note: Percentages and Company’s market average are weighted based on committed total investment amounts. | (1) Source: Census Bureau. | (2) As of 8/31/2019. | (3) Other markets include Austin, Bal
Slide 13: Attractive Investment Portfolio
September 2019 Investor Presentation Notes: Percentage of portfolio based on committed total investment amounts. Portfolio overview statistics exclude pipeline investments, including those with executed term sheets. | (1) Represents closed loan commitments and wholly-owned property investments as of
Slide 14: Current Portfolio and Investment Pipeline
September 2019 Investor Presentation 14 CURRENT PORTFOLIO AND INVESTMENT PIPELINE Note: As of August 31, 2019. Boston Washington, DC Kansas City New Haven-Stamford New York City-Northern NJ Philadelphia Tampa Los Angeles Baltimore Miami Atlanta Orlando Minneapolis Jacksonville Houston Austin New Orl
Slide 15: Business Model Proven from Origination to Acquisition
September 2019 Investor Presentation BUSINESS MODEL PROVEN FROM ORIGINATION TO ACQUISITION (1) Funded principal balance of the loan (net of unamortized origination fees) as of the date of acquisition. | (2) Represents cash consideration (inclusive of transaction costs), assumed liabilities, and net
Slide 16: Summary & Highlights: Wholly-Owned Properties
September 2019 Investor Presentation SUMMARY & HIGHLIGHTS WHOLLY-OWNED PROPERTIES (1) Stabilized yield represents projected stabilized NOI divided by JCAP Capital Investment. JCAP Capital Investment represents the sum of the funded principal balance of the loan (net of unamortized origination fees),
Slide 17: Miami Bridge Investment
September 2019 Investor Presentation MIAMI BRIDGE INVESTMENT (1) The two projects that were under construction at close will each also pay a $1 million preferred return to the developer after payment to JCAP of the PIK interest and before the 49.9% profits interest split. | (2) Physical occupancy as
Slide 18: JCAP Capital Sources and Investment Uses
September 2019 Investor Presentation JCAP CAPITAL SOURCES AND INVESTMENT USES (1) Does not include financing spend or operating cash flow. | (2) Assumes increase in the availability under the Credit Facility. As of June 30, 2019, the Company had $162.9 million of total availability for borrowing und
Slide 19: Contact Jernigan Capital
September 2019 Investor Presentation CONTACT JERNIGAN CAPITAL JERNIGAN CAPITAL, INC investorrelations@jernigancapital.com 6410 Poplar Ave, Suite 650 Memphis, TN 38119 www.jernigancapital.com 19
Slide 20: Appendix
September 2019 Investor Presentation APPENDIX
Slide 21: Portfolio Detail
September 2019 Investor Presentation PORTFOLIO DETAIL Note: Represents portfolio as of 6/30/2019. | (1) JCAP Capital Investment represents the sum of the funded principal balance of the loan (net of unamortized origination fees), cash consideration (inclusive of transaction costs), assumed liabiliti
Slide 22: Portfolio Detail – Continued
September 2019 Investor Presentation PORTFOLIO DETAIL – CONTINUED 22 Note: Represents portfolio as of 6/30/2019. | (1) Represents principal balance of loan gross of origination fees. The principal balance includes interest accrued on the investment. | (2) Construction at the facility was substantial
Slide 23: Portfolio Detail – Continued
September 2019 Investor Presentation PORTFOLIO DETAIL – CONTINUED 23 Note: Represents portfolio as of 6/30/2019. | (1) Represents principal balance of loan gross of origination fees. The principal balance includes interest accrued on the investment. | (2) Construction at the facility was substantial
Slide 24: Portfolio Detail – Continued
September 2019 Investor Presentation PORTFOLIO DETAIL – CONTINUED 24 Note: Represents portfolio as of 6/30/2019. | (1) Represents principal balance of loan gross of origination fees. The principal balance includes interest accrued on the investment. | (2) Construction at the facility was substantial
Slide 25: Portfolio Detail – Continued
September 2019 Investor Presentation PORTFOLIO DETAIL – CONTINUED Note: Represents portfolio as of 6/30/2019. | (1) JCAP Capital Investment represents the sum of the funded principal balance of the loan (net of unamortized origination fees), cash consideration (inclusive of transaction costs), assum
Slide 26: JCAP Is an Equity REIT, Not a Mortgage REIT
September 2019 Investor Presentation JCAP IS AN EQUITY REIT, NOT A MORTGAGE REIT TYPICAL MORTGAGE REIT .. Higher corporate leverage, including leverage of junior debt .. No equity participation .. Structured finance arbitrage rather than property focus .. Communication with borrowers only when probl
Slide 27: Heitman Capital Management Joint Venture Overview
September 2019 Investor Presentation HEITMAN CAPITAL MANAGEMENT JOINT VENTURE OVERVIEW JV Partner Heitman Capital Management LLC Initial Investment Structure 90% Heitman / 10% JCAP Current JV Commitment $133 million (including capital investment in the four properties wholly-owned by the venture) JC
Slide 28: Highland Capital Series A Preferred Overview
September 2019 Investor Presentation HIGHLAND CAPITAL SERIES A PREFERRED OVERVIEW Investor Funds managed by NexPoint Advisors, L.P. Structure of the Investment Series A Preferred Stock Investment Size Up to $125 million of equity capital through September 2018 Current Balance $129.3 million as of Ju
Slide 29: Series B Preferred Stock Overview
September 2019 Investor Presentation SERIES B PREFERRED STOCK OVERVIEW NYSE Symbol JCAP-PB Structure of the Investment Series B Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value per share with a liquidation preference of $25.00 per share Current Investment Size $39.3 million or 1,571,
Slide 30: Credit Facility Overview
September 2019 Investor Presentation CREDIT FACILITY OVERVIEW Lead Lenders / Arrangers KeyBank Capital Markets, Inc., Raymond James Bank, N.A. and BMO Harris Bank N.A. Structure of the Investment Senior secured revolving credit facility Current Balance As of June 30, 2019, the Company had $62.9 mill
Slide 31: Term Loans Overview
September 2019 Investor Presentation TERM LOANS OVERVIEW Lender FirstBank Structure of the Investment Secured by first mortgages on five of JCAP’s wholly-owned self-storage facilities Investment Size $41.2 million as of August 31, 2019 Term Three years – August 2021 maturity date Cost of Capital Int
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