KANSAS CITY, Mo.--(BUSINESS WIRE)--
CorEnergy Infrastructure Trust, Inc. ("CorEnergy" or the "Company")
announced today that it sold its Portland Terminal Facility and its
remaining interest in the Joliet Terminal ("Joliet") to Zenith Energy
Terminals Holdings ("Zenith") for an aggregate consideration of $61
million.
Pursuant to CorEnergy’s lease agreement with its tenant, Zenith had the
option, effective in February 2017, to purchase the terminal. Following
an asset and market review, CorEnergy and Zenith entered a negotiated
sale. The Portland Terminal was purchased by CorEnergy in January 2014
for $42 million, with the Company investing an additional $10 million
for improvements in the asset. Zenith became the parent company of the
tenant when it purchased the original tenant, a subsidiary of Arc
Logistics, LP, in December 2017.
CorEnergy also sold its remaining interests in Joliet, the owner of a
multi-purpose storage facility in Illinois. As of September 30, 2018,
CorEnergy valued these interests at approximately $1.2 million, and
CorEnergy was not anticipating receiving material distributions from the
investment in the near term.
“The rent payments CorEnergy received on the Portland Terminal over the
last five years, as well as the gain on sale from this transaction, have
provided a total annual return within CorEnergy’s low to mid-teens
target range for this type of asset,” said CorEnergy’s CEO and
President, Dave Schulte. “With the funds we are receiving, CorEnergy
expects to invest in another asset in 2019. We remain committed to our
underwriting disciplines and also have the flexibility to deleverage to
further strengthen our capital structure. We do not expect the sale of
Portland to affect CorEnergy’s ability to maintain its current quarterly
dividend of $0.75 per share.” As of December 21, 2018, CorEnergy had
repurchased 177,773 shares of its 7.375% Series A Preferred Stock, for
approximately $4.3 million.
Regarding the partnership with Zenith, Schulte added, “Our tenant’s
operating team developed the commercial potential for the Portland
Terminal, while CorEnergy fulfilled our role of funding the initial
acquisition and upgrades. The relationship has proven beneficial to both
parties. We are pleased with the transaction, to have had Zenith as a
tenant, and to have played a role in its continuing terminal acquisition
success.”
About CorEnergy Infrastructure Trust, Inc.
CorEnergy Infrastructure Trust, Inc. (NYSE: 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.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20181221005588/en/
CorEnergy Infrastructure Trust, Inc.
Investor Relations
Lesley
Schorgl, 877-699-CORR (2677)
info@corenergy.reit
Source: CorEnergy Infrastructure Trust, Inc.