Jernigan Capital — Investor Presentation (June 2020)
29 slides from Jernigan Capital's investor presentation, Jun 2, 2020
Slide 1: Investor Presentation June 2020
June 2020 Investor Presentation INVESTOR PRESENTATION June 2020 JERNIGAN CAPITAL 6410 Poplar Ave, Suite 650 Memphis, TN 38119
Slide 2: Safe Harbor Disclosure Regarding Forward-Looking Statements
June 2020 Investor Presentation SAFE HARBOR DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS This presentation includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the future performance, future book value,
Slide 3: Introduction: Our Mission
June 2020 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 sha
Slide 4: Recent Events
June 2020 Investor Presentation RECENT EVENTS 4 (1) As of May 31, 2020. ▪ Year-to-date 2020 activity(1): ▪ In February, purchased 100% of the Class A membership units of the LLCs that own Fort Lauderdale, Boston 2, Atlanta 4, Atlanta 6, Atlanta 5, Atlanta 3, Charlotte 2, Knoxville, and Louisville 1
Slide 5: Significant Identified and Potential Growth Opportunities
June 2020 Investor Presentation ▪ 100% ownership of 31 properties consolidated through acquisition of developers’ interests, either on balance sheet (26 properties) or in Heitman JV (five properties), representing 41% of the net rentable square feet in total portfolio, or 50% of the open and operati
Slide 6: Experienced and Aligned Senior Management Team
June 2020 Investor Presentation EXPERIENCED AND ALIGNED SENIOR MANAGEMENT TEAM 6 Jonathan Perry President & Chief Investment Officer ▪ 20+ years in the self- storage industry ▪ CIO of CubeSmart, leading over $3.5 billion of self-storage investments ▪ Worked in various finance and real estate positio
Slide 7: High ROI Business Model Executed in Top Self-Storage Markets
June 2020 Investor Presentation HIGH ROI BUSINESS MODEL EXECUTED IN TOP SELF-STORAGE MARKETS ATTRACTIVE RISK-ADJUSTED RETURNS THROUGH EQUITY PARTICIPATION (1) Projected IRR range assumes the following: 3 to 5 year lease-up period, an 8.0% to 9.0% development yield, a 5.5% exit cap rate and a sale at
Slide 8: Development Project Investment Timeline
June 2020 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 with fixed
Slide 9: Selective Site Selection
June 2020 Investor Presentation SELECTIVE SITE SELECTION (1) Represents closed loan commitments and wholly owned property investments as of May 31, 2020, including closed investments that have been repaid and closed investments the Company intends to forgo. $11.9 billion INVESTMENTS REVIEWED $1.4 bi
Slide 10: High Quality Self-Storage Properties Located in Attractive Markets
June 2020 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 May 31, 2020. | (3) Other markets include Austin, Balti
Slide 11: Portfolio Overview Statistics
June 2020 Investor Presentation 8% 10% 36% 22% 11% 14% 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
Slide 12: Captive Acquisitions Pipeline
June 2020 Investor Presentation CAPTIVE ACQUISITIONS PIPELINE Note: Percentages and Company’s market average are weighted based on committed total investment amounts. | (1) Excludes JCAP Miami and the five assets underlying the Miami bridge portfolio. | (2) As of May 31, 2020. PORTFOLIO HIGHLIGHTS ▪
Slide 13: JCAP Investment Portfolio
June 2020 Investor Presentation 13 JCAP Investment Portfolio Note: As of May 31, 2020. 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 Orleans Knoxville Louisvill
Slide 14: Business Model Proven from Origination to Acquisition
June 2020 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 prope
Slide 15: Summary & Highlights: Wholly Owned Properties
June 2020 Investor Presentation SUMMARY & HIGHLIGHTS WHOLLY OWNED PROPERTIES (1) The net rentable square feet (“NRSF”) includes only climate controlled and non-climate controlled storage space. It does not include retail space, office space, non-covered RV space or parking spaces. | (2) Physical occ
Slide 16: JCAP Capital Sources and Investment Uses
June 2020 Investor Presentation JCAP CAPITAL SOURCES AND INVESTMENT USES (1) Does not include financing spend or operating cash flow. | (2) Includes non-cash interest reserves of approximately $26 million. | (3) As of March 31, 2020, the Company had $51.6 million of net borrowing base capacity under
Slide 17: Contact Jernigan Capital
June 2020 Investor Presentation CONTACT JERNIGAN CAPITAL JERNIGAN CAPITAL, INC investorrelations@jernigancapital.com 6410 Poplar Ave, Suite 650 Memphis, TN 38119 www.jernigancapital.com 17
Slide 18: Appendix
June 2020 Investor Presentation APPENDIX
Slide 19: Portfolio Detail – Wholly Owned Properties
June 2020 Investor Presentation PORTFOLIO DETAIL – WHOLLY OWNED PROPERTIES Note: Represents portfolio as of 3/31/2020. | (1) The net rentable square feet (“NRSF”) includes only climate controlled and non-climate controlled storage space. It does not include retail space, office space, non-covered RV
Slide 20: Portfolio Detail – Wholly Owned Properties (continued)
June 2020 Investor Presentation PORTFOLIO DETAIL – WHOLLY OWNED PROPERTIES (continued) 20 Note: Represents portfolio as of 3/31/2020. | (1) The net rentable square feet (“NRSF”) includes only climate controlled and non-climate controlled storage space. It does not include retail space, office space,
Slide 21: Portfolio Detail – Completed Development Investments
June 2020 Investor Presentation PORTFOLIO DETAIL – COMPLETED DEVELOPMENT INVESTMENTS 21 Note: Represents portfolio as of 3/31/2020. | (1) The net rentable square feet (“NRSF”) includes only climate controlled and non-climate controlled storage space. It does not include retail space, office space, n
Slide 22: Portfolio Detail – Completed Development Investments (continued)
June 2020 Investor Presentation PORTFOLIO DETAIL – COMPLETED DEVELOPMENT INVESTMENTS (continued) 22 Note: Represents portfolio as of 3/31/2020. | (1) The net rentable square feet (“NRSF”) includes only climate controlled and non-climate controlled storage space. It does not include retail space, off
Slide 23: Portfolio Detail – Development Investments in Progress
June 2020 Investor Presentation PORTFOLIO DETAIL – DEVELOPMENT INVESTMENTS IN PROGRESS 23 Note: Represents portfolio as of 3/31/2020. | (1) Estimated C/O dates represent the Company’s best estimate as of March 31, 2020 based on project specific information learned through underwriting and communicat
Slide 24: Portfolio Detail – Heitman JV
June 2020 Investor Presentation PORTFOLIO DETAIL – HEITMAN JV 24 Note: Represents portfolio as of 3/31/2020. | (1) The net rentable square feet (“NRSF”) includes only climate controlled and non-climate controlled storage space. It does not include retail space, office space, non-covered RV space or
Slide 25: Heitman Capital Management Joint Venture Overview
June 2020 Investor Presentation HEITMAN CAPITAL MANAGEMENT JOINT VENTURE OVERVIEW JV Partner Heitman Capital Management LLC Initial Investment Structure 90% Heitman / 10% JCAP Current JV Commitment $74 million (including capital investment in the five properties wholly owned by the venture) JCAP Fee
Slide 26: Highland Capital Series A Preferred Overview
June 2020 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 $136 million as of March 31,
Slide 27: Series B Preferred Stock Overview
June 2020 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 1,571,734 s
Slide 28: Credit Facility Overview
June 2020 Investor Presentation CREDIT FACILITY OVERVIEW Lead Lenders / Arrangers KeyBank National Association and BMO Harris Bank N.A. Structure of the Investment Senior secured revolving credit facility Current Balance As of March 31, 2020, the Company had $198 million outstanding on the credit fa
Slide 29: Term Loans Overview
June 2020 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 March 31, 2020 Term Three years – August 2021 maturity date Cost of Capital Interest