CorEnergy Announces Fiscal 2016 Results
KANSAS CITY, Mo.--(BUSINESS WIRE)-- CorEnergy Infrastructure Trust, Inc. (NYSE: CORR, CORRPrA) (“CorEnergy” or the “Company”) today announced financial results for the fiscal year ended December 31, 2016.
Recent Developments
- Delivered Net Income of $2.14 per common share (basic and diluted), NAREIT Funds from Operations (NAREIT FFO)1 of $3.54 per share (diluted), Funds from Operations (FFO)1 of $3.53 per share (diluted) and Adjusted Funds from Operations (AFFO)1 of $3.93 per share (diluted)
- Declared common stock dividend of $0.75 per share ($3.00 annualized) for the fourth quarter
- On November 28, 2016, the U.S. Bankruptcy Court Approved Ultra Petroleum’s assumption of the Pinedale LGS Lease Agreement with no economic changes.
- On December 30, 2016, the parent company of the tenant of the Grand Isle Gathering System emerged from the U.S. Bankruptcy Court as Energy XXI Gulf Coast, Inc.
- Entered into an amended agreement with Laclede Gas Company for service on the MoGas Pipeline
- Provides dividend guidance of $3.00 per common share
“2016 was a year for validation for CorEnergy,” said Chief Executive Officer Dave Schulte. “Our strategy of investing in critical assets with long-term contracts mitigates commodity price risk, thereby demonstrating the resiliency of our revenue and dividends. Looking to 2017, we have significant financial flexibility to execute acquisitions, further diversifying our portfolio, enhancing our dividend stability, and adding potential long-term growth in our investor-friendly REIT structure.”
Fiscal Year 2016 Performance Summary
2016 Total Revenue of $89.3 million increased from $71.3 million in 2015, largely due to the full year of revenue from the Grand Isle Gathering Lease. Net Income attributable to common stockholders for full year 2016 was $25.5 million, or $2.14 per common share (basic and diluted), which increased from $8.5 million, or $0.79 per common share (basic and diluted) in 2015. The increase in net income is largely attributable to the increase in revenue in 2016, as well as the decrease in the provision from loan loss associated with CorEnergy’s Financing Notes from 2015 results. AFFO for the fiscal year 2016 was $52.4 million, or $3.93 per share (diluted), versus an AFFO for fiscal year 2015 of $40.3 million or $3.56 per common share (diluted). Management uses AFFO as a measure of long-term sustainable operational performance. For completeness, we present other measures of income in the table below:
| Fiscal Year | ||||||||||||
| Ended December 31, 2016 | ||||||||||||
| Per Share | ||||||||||||
| Total | Basic | Diluted | ||||||||||
| Net Income (Attributable to Common Stockholders)1 | $ | 25,514,763 | $ | 2.14 | $ | 2.14 | ||||||
| NAREIT Funds from Operations (NAREIT FFO)1 | $ | 45,573,219 | $ | 3.83 | $ | 3.54 | ||||||
| Funds From Operations (FFO)1 | $ | 45,396,401 | $ | 3.81 | $ | 3.53 | ||||||
| Adjusted Funds From Operations (AFFO)1 | $ | 52,438,268 | $ | 4.41 | $ | 3.93 | ||||||
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.
Portfolio Update
Pinedale Liquids Gathering System: Ultra Petroleum agreed to assume the Lease without amendment, which was approved by the bankruptcy court on November 28, 2016. On February 13, 2017, UPL received court approval of its Disclosure Statement. The confirmation hearing is scheduled to begin on March 14, 2017. CorEnergy will continue to monitor, and take appropriate actions to, the information disclosed throughout the remainder of the bankruptcy proceedings. Our tenant has continued to make timely rental payments in accordance with the lease agreement.
Grand Isle Gathering System: On December 30, 2016, the successor to Energy XXI, Energy XXI Gulf Coast, Inc. emerged from Chapter 11 Bankruptcy with an approximately $300 million credit facility after extinguishing $3.6 billion of debt. The new board of directors has announced changes in senior management. EXXI expects its capital expenditure for 2017 to be in the range of $140 to $170 million and to execute numerous recompletions in 2017. Our tenant has continued to make timely rental payments in accordance with the lease agreement.
MoGas Pipeline: Effective March 1, 2017, CorEnergy’s wholly-owned subsidiary, MoGas Pipeline LLC successfully amended and extended its Firm Transportation Services Agreement with Laclede Gas Company (“Laclede”), which currently accounts for approximately 56% of MoGas’ revenue. The agreement extends the termination date from October 31, 2017 to October 31, 2030 and Laclede will continue to hold 62,800 dekatherms per day of firm transportation capacity on MoGas. This service will continue at the full tariff rate of $12.385 per dekatherm per month until October 31, 2018, at which time the rate will be reduced to $6.386 per dekatherm per month for the remainder of the agreement, resulting in a $4.5 million reduction in annual revenues. MoGas, a wholly owned subsidiary of the Company, operates the pipeline network, unlike the majority of CorEnergy’s assets which are leased to an operator under a triple-net participating lease.
CorEnergy expects to offset at least $3 million of the reduction in revenue from Laclede before the reduced rate becomes effective in November 2018. The initiatives to recoup revenues include potential pipeline extensions, leveraging MoGas’ multiple pipeline connections, exploring different supply basin optionality, and other revenue enhancement strategies.
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 anticipates transacting on one to two acquisitions per year in 2017 and 2018, 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 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) based on rents received, pending any unforeseen (i) adverse outcomes of the Ultra Petroleum bankruptcy in 2017, or (ii) inability to materially recoup revenues from the reduction in rates for Laclede’s utilization of the MoGas Pipeline by the end of 2018. The Company targets revenue growth of 1-3% annually from existing contracts. Based on low inflation and current production levels, CorEnergy does not anticipate significant inflation-based or participating rents in 2017.
“CorEnergy remains well-positioned with critical assets supported by long-term contracts, ample liquidity for future transactions, and the willingness of our manager to waive incentive fees if necessary to support our dividends,” continued Dave Schulte. “We see our business development pipeline growing as capital formation activity in the energy sector resumes. We expect to transact on one to two acquisitions in 2017 and 2018, further mitigating any potential impact from the MoGas contract adjustment by 2019.”
Dividend Declaration
Common Stock: A fourth quarter common stock cash dividend of $0.75 ($3.00 annualized) was declared on January 25, 2017, payable on February 28, 2017. CorEnergy maintains a quarterly common stock dividend payment cycle of February, May, August and November.
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 for the fourth quarter, payable on February 28, 2017. The preferred dividends, which equate to an annual payment of $1.84375 per depositary share, are paid on or about the last day of February, May, August and November.
Fiscal Year 2016 Earnings Conference Call
CorEnergy will host a conference call on Thursday, March 2, 2017, 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 11:59 p.m. Eastern Time on April 2, 2017 by dialing 877-481-4010 (for international, 1-919-882-2331). The Conference ID is 13655589. A replay of the conference call will also be available on the Company’s website.
About CorEnergy Infrastructure Trust, Inc.
CorEnergy Infrastructure Trust, Inc. (NYSE: CORR, CORRPrA) is a real estate investment trust (REIT) that owns essential midstream and downstream energy assets, such as pipelines, storage terminals, and transmission and distribution assets. We seek 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.
With the parent company and tenant of the Pinedale LGS currently reorganizing pursuant to Chapter 11 bankruptcy proceedings, we refer investors to the risk factors in our 10-K filings as to the potential risks associated with unexpired leases.
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, 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 Investments plus provision from loan losses, net of tax, transaction costs, amortization of debt issuance costs, amortization of deferred leasing costs, accretion of asset retirement obligations, income tax expense (benefit) unrelated to securities investments and provision for loan losses, above market rent, noncash costs associated with derivative instruments and certain costs of non-recurring 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 Adjusted EBITDA and to Net Income Attributable to Common Stockholders are included in the additional financial information attached to this press release.
| CorEnergy Infrastructure Trust, Inc. | |||||||||||
| Consolidated Balance Sheets | |||||||||||
| December 31, 2016 | December 31, 2015 | ||||||||||
| Assets | |||||||||||
| Leased property, net of accumulated depreciation of $52,219,717 and $33,869,263 | $ |
489,258,369 |
$ | 509,226,215 | |||||||
| Property and equipment, net of accumulated depreciation of $9,292,712 and $5,948,988 | 116,412,806 | 119,629,978 | |||||||||
| Financing notes and related accrued interest receivable, net of reserve of $4,100,000 and $13,784,137 | 1,500,000 | 7,675,626 | |||||||||
| Other equity securities, at fair value | 9,287,209 | 8,393,683 | |||||||||
| Cash and cash equivalents | 7,895,084 | 14,618,740 | |||||||||
| Accounts and other receivables | 19,415,666 | 10,431,240 | |||||||||
| Deferred costs, net of accumulated amortization of $2,261,151 and $2,717,609 | 3,132,050 | 4,187,271 | |||||||||
| Prepaid expenses and other assets | 354,230 | 491,024 | |||||||||
| Deferred tax asset | 1,758,289 | 1,606,976 | |||||||||
| Goodwill | 1,718,868 | 1,718,868 | |||||||||
| Total Assets | $ |
650,732,571 |
$ | 677,979,621 | |||||||
| Liabilities and Equity | |||||||||||
| Secured credit facilities, net (including $8,860,577 and $0 with related party) | $ | 89,387,985 | $ | 105,440,842 | |||||||
| Unsecured convertible senior notes, net of discount and debt issuance costs of $2,755,105 and $3,576,090 | 111,244,895 | 111,423,910 | |||||||||
| Asset retirement obligation |
11,882,943 |
12,839,042 | |||||||||
| Accounts payable and other accrued liabilities | 2,416,283 | 2,317,774 | |||||||||
| Management fees payable | 1,735,024 | 1,763,747 | |||||||||
| Unearned revenue | 155,961 | — | |||||||||
| Total Liabilities | $ |
216,823,091 |
$ | 233,785,315 | |||||||
| Equity | |||||||||||
| Series A Cumulative Redeemable Preferred Stock 7.375%, $56,250,000 liquidation preference ($2,500 per share, $0.001 par value), 10,000,000 authorized; 22,500 issued and outstanding at December 31, 2016, and December 31, 2015 | $ | 56,250,000 | 56,250,000 | ||||||||
| Capital stock, non-convertible, $0.001 par value; 11,886,216 and 11,939,697 shares issued and outstanding at December 31, 2016, and December 31, 2015 (100,000,000 shares authorized) | 11,886 | 11,940 | |||||||||
| Additional paid-in capital | 350,217,746 | 361,581,507 | |||||||||
| Accumulated other comprehensive income (loss) | (11,196 | ) | 190,797 | ||||||||
| Total CorEnergy Equity | 406,468,436 | 418,034,244 | |||||||||
| Non-controlling Interest | 27,441,044 | 26,160,062 | |||||||||
| Total Equity | 433,909,480 | 444,194,306 | |||||||||
| Total Liabilities and Equity | $ |
650,732,571 |
$ | 677,979,621 | |||||||
| CorEnergy Infrastructure Trust, Inc. | |||||||||||||||
| Consolidated Statements of Income | |||||||||||||||
| For the Years Ended December 31, | |||||||||||||||
| 2016 | 2015 | 2014 | |||||||||||||
| Revenue | |||||||||||||||
| Lease revenue | $ | 67,994,130 | $ | 48,086,072 | 28,223,765 | ||||||||||
| Transportation and distribution revenue | 21,094,112 | 14,345,269 | 1,298,093 | ||||||||||||
| Financing revenue | 162,344 | 1,697,550 | 1,077,813 | ||||||||||||
| Sales revenue | — | 7,160,044 | 9,708,902 | ||||||||||||
| Total Revenue | 89,250,586 | 71,288,935 | 40,308,573 | ||||||||||||
| Expenses | |||||||||||||||
| Transportation and distribution expenses | 6,463,348 | 4,609,725 | 1,299,782 | ||||||||||||
| Cost of Sales | — | 2,819,212 | 7,291,968 | ||||||||||||
| General and administrative | 12,270,380 | 9,745,704 | 7,872,753 | ||||||||||||
| Depreciation, amortization and ARO accretion expense | 22,522,871 | 18,766,551 | 13,195,255 | ||||||||||||
| Provision for loan loss and disposition | 5,014,466 | 13,784,137 | — | ||||||||||||
| Total Expenses | 46,271,065 | 49,725,329 | 29,659,758 | ||||||||||||
| Operating Income | $ | 42,979,521 | $ | 21,563,606 | $ | 10,648,815 | |||||||||
| Other Income (Expense) | |||||||||||||||
| Net distributions and dividend income | $ | 1,140,824 | $ | 1,270,755 | 1,836,783 | ||||||||||
| Net realized and unrealized gain (loss) on other equity securities | 824,482 | (1,063,613 | ) | (466,026 | ) | ||||||||||
| Interest expense | (14,417,839 | ) | (9,781,184 | ) | (3,675,122 | ) | |||||||||
| Total Other Expense | (12,452,533 | ) | (9,574,042 | ) | (2,304,365 | ) | |||||||||
| Income before income taxes | 30,526,988 | 11,989,564 | 8,344,450 | ||||||||||||
| Taxes | |||||||||||||||
| Current tax expense (benefit) | (313,107 | ) | 922,010 | 3,843,937 | |||||||||||
| Deferred tax benefit | (151,313 | ) | (2,869,563 | ) | (4,069,500 | ) | |||||||||
| Income tax benefit, net | (464,420 | ) | (1,947,553 | ) | (225,563 | ) | |||||||||
| Net Income | 30,991,408 | 13,937,117 | 8,570,013 | ||||||||||||
| Less: Net Income attributable to non-controlling interest | 1,328,208 | 1,617,206 | 1,556,157 | ||||||||||||
| Net Income attributable to CorEnergy Stockholders | $ | 29,663,200 | $ | 12,319,911 | $ | 7,013,856 | |||||||||
| Preferred dividend requirements | 4,148,437 | 3,848,828 | — | ||||||||||||
| Net Income attributable to Common Stockholders | $ | 25,514,763 | $ | 8,471,083 | $ | 7,013,856 | |||||||||
| Net Income | $ | 30,991,408 | $ | 13,937,117 | 8,570,013 | ||||||||||
| Other comprehensive income (loss): | |||||||||||||||
| Changes in fair value of qualifying hedges attributable to CorEnergy stockholders | (201,993 | ) | (262,505 | ) | (324,101 | ) | |||||||||
| Changes in fair value of qualifying hedges attributable to non-controlling interest | (47,226 | ) | (61,375 | ) | (75,780 | ) | |||||||||
| Net Change in Other Comprehensive Loss | $ | (249,219 | ) | $ | (323,880 | ) | $ | (399,881 | ) | ||||||
| Total Comprehensive Income | 30,742,189 | 13,613,237 | 8,170,132 | ||||||||||||
| Less: Comprehensive income attributable to non-controlling interest | 1,280,982 | 1,555,831 | 1,480,377 | ||||||||||||
| Comprehensive Income attributable to CorEnergy Stockholders | $ | 29,461,207 | $ | 12,057,406 | $ | 6,689,755 | |||||||||
| Earnings Per Common Share: | |||||||||||||||
| Basic | $ | 2.14 | $ | 0.79 | 1.06 | ||||||||||
| Diluted | $ | 2.14 | $ | 0.79 | 1.06 | ||||||||||
| Weighted Average Shares of Common Stock Outstanding: | |||||||||||||||
| Basic | 11,901,985 | 10,685,892 | 6,605,715 | ||||||||||||
| Diluted | 11,901,985 | 10,685,892 | 6,605,715 | ||||||||||||
| Dividends declared per share | $ | 3.000 | $ | 2.750 | $ | 2.570 | |||||||||
| CorEnergy Infrastructure Trust, Inc. | |||||||||||||||||
| Consolidated Statements of Cash Flows (Unaudited) | |||||||||||||||||
| For the Years Ended December 31, | |||||||||||||||||
| 2016 | 2015 | 2014 | |||||||||||||||
| Operating Activities | |||||||||||||||||
| Net Income | $ | 30,991,408 | $ | 13,937,117 | $ | 8,570,013 | |||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
| Deferred income tax, net | (151,313 | ) | (2,869,563 | ) | (4,069,500 | ) | |||||||||||
| Depreciation, amortization and ARO accretion | 24,548,350 | 20,662,297 | 14,289,017 | ||||||||||||||
| Provision for loan loss | 5,014,466 | 13,784,137 | — | ||||||||||||||
| Gain on repurchase of convertible debt | (71,702 | ) | — | — | |||||||||||||
| Net distributions and dividend income, including recharacterization of income | (117,004 | ) | (371,323 | ) | 960,384 | ||||||||||||
| Net realized and unrealized (gain) loss on other equity securities | (781,153 | ) | 1,063,613 | (1,357,496 | ) | ||||||||||||
| Unrealized gain on derivative contract | (75,591 | ) | (70,333 | ) | (70,720 | ) | |||||||||||
| Settlement of derivative contract | (95,319 | ) | — | — | |||||||||||||
| Common stock issued under directors compensation plan | 60,000 | 90,000 | 30,000 | ||||||||||||||
| Changes in assets and liabilities: | |||||||||||||||||
| Increase in accounts and other receivables | (8,534,426 | ) | (2,273,092 | ) | (383,306 | ) | |||||||||||
| Decrease (increase) in financing note accrued interest receivable | 95,114 | (355,208 | ) | — | |||||||||||||
| Decrease (increase) in prepaid expenses and other assets | 329,735 | (37,462 | ) | 96,743 | |||||||||||||
| (Decrease) increase in management fee payable | (28,723 | ) | 599,348 | 468,961 | |||||||||||||
| Decrease in accounts payable and other accrued liabilities | (231,151 | ) | (847,683 | ) | (2,276,773 | ) | |||||||||||
| Increase (decrease) in unearned revenue | 155,961 | (711,230 | ) | 711,230 | |||||||||||||
| Net cash provided by operating activities | $ | 51,108,652 | $ | 42,600,618 | $ | 16,968,553 | |||||||||||
| Investing Activities | |||||||||||||||||
| Proceeds from sale of long-term investment in other equity securities | — | — | 10,806,879 | ||||||||||||||
| Proceeds from assets and liabilities held for sale | 644,934 | 7,678,246 | — | ||||||||||||||
| Deferred lease costs | — | (336,141 | ) | — | |||||||||||||
| Acquisition expenditures | — | (251,513,344 | ) | (168,204,309 | ) | ||||||||||||
| Purchases of property and equipment, net | (191,926 | ) | (138,918 | ) | (11,970 | ) | |||||||||||
| Proceeds from asset foreclosure and sale | 223,451 | — | 948 | ||||||||||||||
| Increase in financing notes receivable | (202,000 | ) | (524,037 | ) | (20,648,714 | ) | |||||||||||
| Principal payment on financing note receivable | — | 100,000 | — | ||||||||||||||
| Return of capital on distributions received | 4,631 | 121,578 | 981,373 | ||||||||||||||
| Net cash provided (used) by investing activities | $ | 479,090 | $ | (244,612,616 | ) | $ | (177,075,793 | ) | |||||||||
| Financing Activities | |||||||||||||||||
| Debt financing costs | (193,000 | ) | (1,617,991 | ) | (3,269,429 | ) | |||||||||||
| Net offering proceeds on Series A preferred stock | — | 54,210,476 | — | ||||||||||||||
| Net offering proceeds on common stock | — | 73,184,679 | 141,797,913 | ||||||||||||||
| 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 | (4,148,437 | ) | (3,503,125 | ) | — | ||||||||||||
| Dividends paid on common stock | (34,896,727 | ) | (28,528,224 | ) | (15,187,976 | ) | |||||||||||
| Distributions to non-controlling interest | — | (2,486,464 | ) | (2,737,712 | ) | ||||||||||||
| Advances on revolving line of credit | 44,000,000 | 45,392,332 | 34,676,948 | ||||||||||||||
| Payments on revolving line of credit | — | (77,533,609 | ) | (2,617,606 | ) | ||||||||||||
| Proceeds from term debt | — | 45,000,000 | — | ||||||||||||||
| Principal payments on secured credit facilities | (60,131,423 | ) | (6,328,000 | ) | (2,940,000 | ) | |||||||||||
| Net cash (used) provided by financing activities | $ | (58,311,398 | ) | $ | 209,052,574 | $ | 149,722,138 | ||||||||||
| Net Change in Cash and Cash Equivalents | $ | (6,723,656 | ) | $ | 7,040,576 | $ | (10,385,102 | ) | |||||||||
| Cash and Cash Equivalents at beginning of period | 14,618,740 | 7,578,164 | 17,963,266 | ||||||||||||||
| Cash and Cash Equivalents at end of period | $ | 7,895,084 | $ | 14,618,740 | $ | 7,578,164 | |||||||||||
| Supplemental Disclosure of Cash Flow Information | |||||||||||||||||
| Interest paid | $ | 12,900,901 | $ | 7,873,333 | $ | 2,762,903 | |||||||||||
| Income taxes paid (net of refunds) | $ | 37,736 | $ | 747,406 | $ | 3,260,576 | |||||||||||
| Non-Cash Investing Activities | |||||||||||||||||
| Change in accounts and other receivables | $ | (450,000 | ) | $ | — | $ | — | ||||||||||
| Change in accounts payable and accrued expenses related to acquisition expenditures | $ | — | $ | (614,880 | ) | $ | 270,615 | ||||||||||
| Change in accounts payable and accrued expenses related to issuance of financing and other notes receivable | $ | — | $ | (39,248 | ) | $ | 39,248 | ||||||||||
| 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 | $ | (1,776,549 | ) | $ | — | $ | — | ||||||||||
| Non-Cash Financing Activities | |||||||||||||||||
| Change in accounts payable and accrued expenses related to the issuance of common equity | $ | — | $ | (72,685 | ) | $ | 72,685 | ||||||||||
| Change in accounts payable and accrued expenses related to debt financing costs | $ | — | $ | (43,039 | ) | $ | (176,961 | ) | |||||||||
| Reinvestment of distributions by common stockholders in additional common shares | $ | 815,889 | $ | 817,915 | $ | 140,108 | |||||||||||
| NAREIT FFO, FFO Adjusted for Securities Investment and AFFO Reconciliation | |||||||||||||||||
| For the Years Ended December 31, | |||||||||||||||||
| 2016 | 2015 | 2014 | |||||||||||||||
| Net Income attributable to CorEnergy Stockholders | $ | 29,663,200 | $ | 12,319,911 | $ | 7,013,856 | |||||||||||
| Less: | |||||||||||||||||
| Preferred Dividend Requirements | 4,148,437 | 3,848,828 | — | ||||||||||||||
| Net Income attributable to Common Stockholders | 25,514,763 | 8,471,083 | 7,013,856 | ||||||||||||||
| Add: | |||||||||||||||||
| Depreciation | 21,704,275 | 18,351,011 | 13,133,886 | ||||||||||||||
| Less: | |||||||||||||||||
| Non-Controlling Interest attributable to NAREIT FFO reconciling items | 1,645,819 | 1,645,819 | 1,645,820 | ||||||||||||||
| NAREIT funds from operations (NAREIT FFO) | 45,573,219 | 25,176,275 | 18,501,922 | ||||||||||||||
| Add: | |||||||||||||||||
| Distributions received from investment securities | 1,028,452 | 1,021,010 | 1,941,757 | ||||||||||||||
| Income tax expense (benefit) from investment securities | 760,036 | (196,270 | ) | 656,498 | |||||||||||||
| Less: | |||||||||||||||||
| Net distributions and dividend income | 1,140,824 | 1,270,755 | 1,823,522 | ||||||||||||||
| Net realized and unrealized gain (loss) on other equity securities | 824,482 | (1,063,613 | ) | (466,026 | ) | ||||||||||||
| Funds from operations adjusted for securities investments (FFO) | 45,396,401 | 25,793,873 | 19,742,681 | ||||||||||||||
| Add: | |||||||||||||||||
| Provision for loan losses, net of tax | 4,409,359 | 12,526,701 | — | ||||||||||||||
| Transaction costs | 520,487 | 870,128 | 929,188 | ||||||||||||||
| Amortization of debt issuance costs | 2,025,478 | 1,822,760 | 801,825 | ||||||||||||||
| Amortization of deferred lease costs | 91,932 | 76,498 | 61,369 | ||||||||||||||
| Accretion of asset retirement obligation | 726,664 | 339,042 | — | ||||||||||||||
| Income tax benefit | (619,349 | ) | (493,847 | ) | (882,061 | ) | |||||||||||
| Amortization of above market leases | — | 72,987 | 291,937 | ||||||||||||||
| Unrealized gain associated with derivative instruments | (75,591 | ) | (70,333 | ) | (70,720 | ) | |||||||||||
| Less: | |||||||||||||||||
|
EIP Lease Adjustment(1) |
— | 542,809 | 2,171,236 | ||||||||||||||
| Non-Controlling Interest attributable to AFFO reconciling items | 37,113 | 88,645 | 92,785 | ||||||||||||||
| Adjusted funds from operations (AFFO) | $ | 52,438,268 | $ | 40,306,355 | $ | 18,610,198 | |||||||||||
| Weighted Average Shares of Common Stock Outstanding: | |||||||||||||||||
| Basic | 11,901,985 | 10,685,892 | 6,605,715 | ||||||||||||||
|
Diluted(2) |
15,368,370 | 12,461,733 | 6,605,715 | ||||||||||||||
| NAREIT FFO attributable to Common Stockholders | |||||||||||||||||
| Basic | $ | 3.83 | $ | 2.36 | $ | 2.80 | |||||||||||
|
Diluted(2) |
$ | 3.54 | $ | 2.35 | $ | 2.80 | |||||||||||
| FFO attributable to Common Stockholders | |||||||||||||||||
| Basic | $ | 3.81 | $ | 2.41 | $ | 2.99 | |||||||||||
|
Diluted(2) |
$ | 3.53 | $ | 2.40 | $ | 2.99 | |||||||||||
| AFFO attributable to Common Stockholders | |||||||||||||||||
| Basic | $ | 4.41 | $ | 3.77 | $ | 2.82 | |||||||||||
|
Diluted(2) |
$ | 3.93 | $ | 3.56 | $ | 2.82 | |||||||||||
(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 CorEnergy-sustainable AFFO. CorEnergy believes that the portion of the EIP lease revenue attributable to return of capital, unless adjusted, overstates CorEnergy's distribution-paying capabilities and is not representative of sustainable EIP income over the life of the lease. The Company completed the sale of EIP on April 1, 2015.
(2) The number of weighted average diluted shares represents the total diluted shares for periods when the Convertible Notes were dilutive in the per share amounts presented. For periods presented without per share dilution, the number of weighted average diluted shares for the period is equal to the number of weighted average basic shares presented.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170301006595/en/
CorEnergy Infrastructure Trust, Inc.
Investor Relations
Lesley
Schorgl, 877-699-CORR (2677)
info@corenergy.reit
Source: CorEnergy Infrastructure Trust, Inc.
Released March 1, 2017