Jernigan Capital — Investor Presentation (July 2016)
10 slides from Jernigan Capital's investor presentation, Jul 28, 2016
Slide 1: Frequently Asked Questions about JCAP’s Latest Capital Initiative
1 Frequently Asked Questions about JCAP’s Latest Capital Initiative Exhibit 99.2
Slide 2: Safe Harbor Disclosure Regarding Forward-Looking Statements
2 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 including statements regarding the amount of future self - st
Slide 3: What is the purpose of these FAQs?
3 We have just announced a major capital commitment from NexPoint Advisors, L.P. , an affiliate of Highland Capital Management, L.P. (together with its affiliates, “Highland”), a Dallas - based investment company, that we believe will dramatically fuel our growth and substantially enhance shareholde
Slide 4: Who is Highland and why is it investing in JCAP?
4 First and foremost, funds managed by Highland are current JCAP common shareholders, having acquired over 4% of our outstanding common stock in the open market. Highland Capital Management, L.P. is an SEC - registered investment adviser based in Dallas, Texas. Founded in 1993, Highland has approxim
Slide 5: Series A Preferred Stock terms
5 • Up to $125 million of Series A Preferred Stock, liquidation preference $1,000 per share (“Series A Preferred Stock”) • Senior to JCAP’s common stock, junior to JCAP indebtedness, including senior participations/A notes sold on JCAP’s loans, and pari passu with or senior to any other future serie
Slide 6: Cash dividend and participating PIK dividend terms
6 • 7% per annum cumulative cash dividend, payable quarterly in arrears – dividend rate is equal to the dividend rate per share on $20.00 common stock IPO price and roughly equivalent to the effective interest rate (including origination fees amortization) on JCAP self - storage development investme
Slide 7: How much of the JCAP investment pipeline will the Highland commitment support?
7 • Up to $125 million of new commitments with Series A Preferred Stock • Additional $75 million of new commitments with A notes/senior participations on investments financed with Series A Preferred Stock – Since early May, we have successfully sold A notes/senior participations equal to ~58% of JCA
Slide 8: Does JCAP have sufficient pipeline to provide new investments?
8 • Since November 2014, JCAP management has analyzed 490 self - storage sites and approximately $3.6 billion of potential investments • Current term sheets ~$70 million expected to close Q3 2016 • Approximately $91 million in underwriting with closings possible Q4 2016 and likely Q1 2017 • Addition
Slide 9: How much shareholder value is expected to be created from new on-balance sheet investments?
9 How much shareholder value is expected to be created from $200 million of new on - balance sheet investments? We believe these economics will result in material appreciation of our common stock price, significantly reduce our cost of capital and allow for future common equity issuance to support a
Slide 10: Summary of the Highland capital commitment benefits
10 • Provides up to $125 million of capital, supporting $200 million of additional investments in $600+ million pipeline of brand new, high quality, well - located self - storage developments • Possibility to create $8.00 to $10.00 of incremental book value per common share, which is $ 3.00 to $8.00