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CorEnergy Announces Fiscal Year 2017 Results
KANSAS CITY, MO - February 28, 2018 - CorEnergy Infrastructure Trust, Inc. (“CorEnergy” or the “Company”) today announced financial results for the fiscal year ended December 31, 2017.
Fiscal Year 2017 Performance Summary
Fiscal Year 2017 financial highlights are as follows:
 
For the Year Ended
 
December 31, 2017
 
 
 
Per Share
 
Total
 
Basic
 
Diluted
Net Income (Attributable to Common Stockholders)1
$
24,648,802

 
$
2.07

 
$
2.07

NAREIT Funds from Operations (NAREIT FFO)1
$
46,308,969

 
$
3.89

 
$
3.59

Funds From Operations (FFO)1
$
46,046,781

 
$
3.87

 
$
3.57

Adjusted Funds From Operations (AFFO)1
$
50,536,194

 
$
4.25

 
$
3.81

Dividends Declared to Common Stockholders
 
 
$
3.00

 
 
1 Management uses AFFO as a measure of long-term sustainable operational performance. 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.
Recent Developments
Maintained dividend: Declared common stock dividend of $0.75 per share ($3.00 annualized) for the fourth quarter 2017, in line with the previous nine quarterly dividends
Building relationship with new tenant: Acquisition of Portland Terminal tenant, Arc Logistics, by Zenith Energy U.S. LP ("Zenith Energy") closed on December 21, 2017.
Last of BDC legacy portfolio rolling off: Received $7.6 million in cash proceeds, plus an interest in Arc Terminal Joliet Holdings, valued at $1.2 million for the Company's pro-rata share of the sale of Lightfoot Partners to Zenith Energy






Increased interest in prolific Pinedale Field: Purchased from Prudential Insurance Group of America ("Prudential") its 18.95% minority interest in the Pinedale LGS for $32.9 million
Prudential provided $41 million of 6.5% fixed rate debt, due December 2022, which was utilized to pay off the Pinedale LP credit facility balance and to complete the purchase of the minority interest
Received favorable PLR: Converted Omega Pipeline to a qualified REIT subsidiary, from a taxable REIT subsidiary (TRS) following the receipt of a private letter ruling (PLR) from the IRS
Increased activity at Fort Leonard Wood: Omega was selected for a Utility Energy Service Contract (UESC) at Fort Leonard Wood.
"CorEnergy exited 2017 in a much stronger position than we entered it. The energy downturn has enabled us to demonstrate the durability of our overall strategy and revenue model. CORR acquired the minority stake in the Pinedale LGS and sold our last remaining BDC investment. We strengthened our balance sheet by issuing perpetual preferred stock, upsizing our credit facility, and refinancing the asset level debt on the Pinedale LGS," said CorEnergy CEO Dave Schulte. "We believe CorEnergy is well positioned for additional growth in 2018, with over $155 million of liquidity and multiple acquisition opportunities in various stages of evaluation. The REIT model of infrastructure ownership is emerging as a flexible source of long-term capital for energy companies. CORR has the ability to own and lease assets in a passive financing, as well as in operating subsidiaries where the preponderance of assets are pipelines and storage terminals."
Dividend Declaration
Common Stock: A fourth quarter 2017 dividend of $0.75 per share (or $3.00 per share annualized) was declared for CorEnergy’s common stock. The dividend was payable on February 28, 2018, to stockholders of record on February 14, 2018.
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. The preferred stock dividend, which equates to an annual dividend payment of $1.84375 per depositary share, was payable on February 28, 2018, to stockholders of record on February 14, 2018.





Portfolio Update
Grand Isle Gathering System: The tenant of the Grand Isle Gathering System, Energy XXI Gulf Coast, continues to make strides towards optimizing production while maintaining costs. The company recently announced its 2018 capital budget plan and anticipates drilling six wells this year. These wells are expected to be in the West Delta and South Timbalier fields, which are considered core properties by EXXI and partially served by our system.
Pinedale Liquids Gathering System: On December 29, 2017, we purchased the remaining 18.95% interest in Pinedale LP, from Prudential for approximately $32.9 million. Concurrently, Pinedale LP entered into an amended $41.0 million credit facility, with Prudential as the lender, for a fixed rate of 6.5% for five years.
CorEnergy received approximately $587,000 in participating rents from the utilization of the Pinedale LGS by Ultra Petroleum in 2017. The Company is further encouraged by the recent successes of its tenant in horizontal well drilling, and its plans to expand the program in 2018.
Portland Terminal: On December 21, 2017, Zenith Energy closed on its acquisition of the parent company of the Portland Terminal tenant, Arc Logistics. Pursuant to the Portland Terminal Lease, the tenant maintains the option to repurchase the asset from CorEnergy, subject to a 90-day notice, as well as the right to terminate the lease on the fifth and tenth anniversaries of the agreement. CorEnergy provided Zenith Energy an extension of the deadline for notification of an exercise of its option to terminate the lease agreement on its fifth anniversary to August 1, 2018, from February 1, 2018.
MoGas Pipeline: MoGas continues to explore means to offset the decline in revenue from the amended Spire contract, announced in March 2017. MoGas currently anticipates filing a rate case with the Federal Energy Regulatory Commission (FERC) in the second quarter of 2018.
Omega Pipeline: In November 2017, Omega was selected for a UESC at Fort Leonard Wood in south-central Missouri. The pipeline currently serves that United States Army post with natural gas distribution services and the UESC program will provide comprehensive gas, electricity and water efficiency improvements. CorEnergy believes this initiative could last four to five years and produce incremental earnings.
During 2017, the Company received a private letter ruling from the IRS which qualified the revenue from Omega's long-term contract with Fort Leonard Wood as REIT-qualifying rent income from real property. Effective December 31, 2017, Omega was converted to a qualified REIT subsidiary, from a taxable REIT subsidiary.





Lightfoot Partners: In connection with the Arc Logistics acquisition by Zenith Energy, we received our pro-rata share of the proceeds upon the closing of the transaction for our holdings in Lightfoot. Total cash proceeds of $7.6 million were net of approximately $1.2 million related to a required reinvestment in Arc Terminal Joliet Holdings. As of December 31, 2017, our remaining private company interests in Lightfoot and Arc Terminal Joliet Holdings were valued at approximately $3.0 million.
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 targets transacting on one to two acquisitions per year, 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 and/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). The Company targets revenue growth of 1-3% annually from existing contracts through inflation-based and participating rent adjustments and additional growth from acquisitions. Dependent upon the level of revenue growth achieved, CorEnergy will assess its ability to responsibly grow its dividend above current levels.
Fiscal Year 2017 Earnings Conference Call
CorEnergy will host a conference call on Thursday, March 1, 2018, 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 1:00 p.m. Central Time on April 1, 2018 by dialing 877-481-4010 (for international, 1-919-882-2331). The Conference ID is 25600. 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 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.

Notes
1NAREIT 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 and 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 Investment plus (gain) loss on extinguishment of debt, provision for loan losses, net of tax, transaction costs, amortization of debt issuance costs, amortization of deferred lease costs, accretion of asset retirement obligation, amortization of above market leases, income tax expense (benefit) unrelated to securities investments, non-cash costs associated with derivative instruments, and certain costs of a nonrecurring 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 Net Income Attributable to CorEnergy Stockholders are included in the additional financial information attached to this press release.

Contact Information:
CorEnergy Infrastructure Trust, Inc.
Investor Relations
Lesley Schorgl, 877-699-CORR (2677)
info@corenergy.reit





Consolidated Balance Sheets
 
 
 
 
 
December 31, 2017
 
December 31, 2016
Assets
 
 
 
Leased property, net of accumulated depreciation of $72,155,753 and $52,219,717
$
465,956,467

 
$
489,258,369

Property and equipment, net of accumulated depreciation of $12,643,636 and $9,292,712
113,158,872

 
116,412,806

Financing notes and related accrued interest receivable, net of reserve of $4,100,000 and$4,100,000
1,500,000

 
1,500,000

Other equity securities, at fair value
2,958,315

 
9,287,209

Cash and cash equivalents
15,787,069

 
7,895,084

Deferred rent receivable
22,060,787

 
14,876,782

Accounts and other receivables
3,786,036

 
4,538,884

Deferred costs, net of accumulated amortization of $623,764 and $2,261,151
3,504,916

 
3,132,050

Prepaid expenses and other assets
742,154

 
354,230

Deferred tax asset, net
2,244,629

 
1,758,289

Goodwill
1,718,868

 
1,718,868

Total Assets
$
633,418,113

 
$
650,732,571

Liabilities and Equity
 
 
 
Secured credit facilities, net of debt issuance costs of $254,646 and $212,592 (including $0 and $8,860,577 with related party)
40,745,354

 
89,387,985

Unsecured convertible senior notes, net of discount and debt issuance costs of $1,967,917 and $2,755,105
112,032,083

 
111,244,895

Asset retirement obligation
9,170,493

 
11,882,943

Accounts payable and other accrued liabilities
2,333,782

 
2,416,283

Management fees payable
1,748,426

 
1,735,024

Income tax liability
2,204,626

 

Unearned revenue
3,397,717

 
155,961

Total Liabilities
$
171,632,481

 
$
216,823,091

Equity
 
 
 
Series A Cumulative Redeemable Preferred Stock 7.375%, $130,000,000 and $56,250,000 liquidation preference ($2,500 per share, $0.001 par value), 10,000,000 authorized; 52,000 and 22,500 issued and outstanding at December 31, 2017 and December 31, 2016, respectively
$
130,000,000

 
$
56,250,000

Capital stock, non-convertible, $0.001 par value; 11,915,830 and 11,886,216 shares issued and outstanding at December 31, 2017 and December 31, 2016 (100,000,000 shares authorized)
11,916

 
11,886

Additional paid-in capital
331,773,716

 
350,217,746

Accumulated other comprehensive loss

 
(11,196
)
Total CorEnergy Equity
461,785,632

 
406,468,436

Non-controlling Interest

 
27,441,044

Total Equity
461,785,632

 
433,909,480

Total Liabilities and Equity
$
633,418,113

 
$
650,732,571









Consolidated Statements of Income and Comprehensive Income
 
 
 
 
 
 
 
For the Years Ended December 31,
 
2017
 
2016
 
2015
Revenue
 
 
 
 
 
Lease revenue
$
68,803,804

 
$
67,994,130

 
$
48,086,072

Transportation and distribution revenue
19,945,573

 
21,094,112

 
14,345,269

Financing revenue

 
162,344

 
1,697,550

Sales revenue

 

 
7,160,044

Total Revenue
88,749,377

 
89,250,586

 
71,288,935

Expenses
 
 
 
 
 
Transportation and distribution expenses
6,729,707

 
6,463,348

 
4,609,725

Cost of Sales

 

 
2,819,212

General and administrative
10,786,497

 
12,270,380

 
9,745,704

Depreciation, amortization and ARO accretion expense
24,047,710

 
22,522,871

 
18,766,551

Provision for loan loss and disposition

 
5,014,466

 
13,784,137

Total Expenses
41,563,914

 
46,271,065

 
49,725,329

Operating Income
$
47,185,463

 
$
42,979,521

 
$
21,563,606

Other Income (Expense)
 
 
 
 
 
Net distributions and dividend income
$
680,091

 
$
1,140,824

 
$
1,270,755

Net realized and unrealized gain (loss) on other equity securities
1,531,827

 
824,482

 
(1,063,613
)
Interest expense
(12,378,514
)
 
(14,417,839
)
 
(9,781,184
)
Loss on extinguishment of debt
(336,933
)
 

 

Total Other Expense
(10,503,529
)
 
(12,452,533
)
 
(9,574,042
)
Income before income taxes
36,681,934

 
30,526,988

 
11,989,564

Taxes
 
 
 
 
 
Current tax expense (benefit)
2,831,658

 
(313,107
)
 
922,010

Deferred tax benefit
(486,340
)
 
(151,313
)
 
(2,869,563
)
Income tax expense (benefit), net
2,345,318

 
(464,420
)
 
(1,947,553
)
Net Income
34,336,616

 
30,991,408

 
13,937,117

Less: Net Income attributable to non-controlling interest
1,733,826

 
1,328,208

 
1,617,206

Net Income attributable to CorEnergy Stockholders
$
32,602,790

 
$
29,663,200

 
$
12,319,911

Preferred dividend requirements
7,953,988

 
4,148,437

 
3,848,828

Net Income attributable to Common Stockholders
$
24,648,802

 
$
25,514,763

 
$
8,471,083

 
 
 
 
 
 
Net Income
$
34,336,616

 
$
30,991,408

 
$
13,937,117

Other comprehensive income (loss):
 
 
 
 
 
Changes in fair value of qualifying hedges / AOCI attributable to CorEnergy stockholders
11,196

 
(201,993
)
 
(262,505
)
Changes in fair value of qualifying hedges / AOCI attributable to non-controlling interest
2,617

 
(47,226
)
 
(61,375
)
Net Change in Other Comprehensive Income (Loss)
$
13,813

 
$
(249,219
)
 
$
(323,880
)
Total Comprehensive Income
34,350,429

 
30,742,189

 
13,613,237

Less: Comprehensive income attributable to non-controlling interest
1,736,443

 
1,280,982

 
1,555,831

Comprehensive Income attributable to CorEnergy Stockholders
$
32,613,986

 
$
29,461,207

 
$
12,057,406

Earnings Per Common Share:
 
 
 
 
 
Basic
$
2.07

 
$
2.14

 
$
0.79

Diluted
$
2.07

 
$
2.14

 
$
0.79

Weighted Average Shares of Common Stock Outstanding:
 
 
 
 
 
Basic
11,900,516

 
11,901,985

 
10,685,892

Diluted
11,900,516

 
11,901,985

 
10,685,892

Dividends declared per share
$
3.000

 
$
3.000

 
$
2.750







Consolidated Statements of Cash Flow
 
For the Years Ended December 31,
 
2017
 
2016
 
2015
Operating Activities
 
 
 
 
 
Net Income
$
34,336,616

 
$
30,991,408

 
$
13,937,117

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
Deferred income tax, net
(486,340
)
 
(151,313
)
 
(2,869,563
)
Depreciation, amortization and ARO accretion
25,708,891

 
24,548,350

 
20,662,297

Provision for loan loss

 
5,014,466

 
13,784,137

Loss on extinguishment of debt
336,933

 

 

Non-cash settlement of accounts payable
(221,609
)
 

 

Loss on sale of equipment
4,203

 

 

Gain on repurchase of convertible debt

 
(71,702
)
 

Net distributions and dividend income, including recharacterization of income
148,649

 
(117,004
)
 
(371,323
)
Net realized and unrealized (gain) loss on other equity securities
(1,531,827
)
 
(781,153
)
 
1,063,613

Unrealized gain on derivative contract

 
(75,591
)
 
(70,333
)
Settlement of derivative contract

 
(95,319
)
 

Common stock issued under directors compensation plan
67,500

 
60,000

 
90,000

Changes in assets and liabilities:
 
 
 
 
 
Increase in deferred rent receivables
(7,184,005
)
 
(8,360,036
)
 
(5,016,950
)
Decrease (increase) in accounts and other receivables
752,848

 
(174,390
)
 
2,743,858

Decrease (increase) in financing note accrued interest receivable

 
95,114

 
(355,208
)
(Increase) decrease in prepaid expenses and other assets
(16,717
)
 
329,735

 
(37,462
)
Increase (decrease) in management fee payable
13,402

 
(28,723
)
 
599,348

Decrease in accounts payable and other accrued liabilities
(225,961
)
 
(231,151
)
 
(847,683
)
Increase in income tax liability
2,204,626

 

 

Increase (decrease) in unearned revenue
2,884,362

 
155,961

 
(711,230
)
Net cash provided by operating activities
$
56,791,571

 
$
51,108,652

 
$
42,600,618

Investing Activities
 
 
 
 
 
Proceeds from sale of other equity securities
7,591,166

 

 

Proceeds from assets and liabilities held for sale

 
644,934

 
7,678,246

Deferred lease costs

 

 
(336,141
)
Acquisition expenditures

 

 
(251,513,344
)
Purchases of property and equipment, net
(116,595
)
 
(191,926
)
 
(138,918
)
Proceeds from asset foreclosure and sale

 
223,451

 

Increase in financing notes receivable

 
(202,000
)
 
(524,037
)
Principal payment on financing note receivable

 

 
100,000

Return of capital on distributions received
120,906

 
4,631

 
121,578

Net cash provided by (used in) investing activities
$
7,595,477

 
$
479,090

 
$
(244,612,616
)
Financing Activities
 
 
 
 
 
Debt financing costs
(1,462,741
)
 
(193,000
)
 
(1,617,991
)
Net offering proceeds on Series A preferred stock
71,161,531

 

 
54,210,476

Net offering proceeds on common stock

 

 
73,184,679

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
(8,227,734
)
 
(4,148,437
)
 
(3,503,125
)
Dividends paid on common stock
(34,731,892
)
 
(34,896,727
)
 
(28,528,224
)
Distributions to non-controlling interest
(1,833,650
)
 

 
(2,486,464
)
Advances on revolving line of credit
10,000,000

 
44,000,000

 
45,392,332

Payments on revolving line of credit
(54,000,000
)
 

 
(77,533,609
)
Proceeds from term debt
41,000,000

 

 
45,000,000

Principal payments on secured credit facilities
(45,600,577
)
 
(60,131,423
)
 
(6,328,000
)
Purchase of non-controlling interest
(32,800,000
)
 

 







 
For the Years Ended December 31,
 
2017
 
2016
 
2015
Net cash (used in) provided by financing activities
$
(56,495,063
)
 
$
(58,311,398
)
 
$
209,052,574

Net Change in Cash and Cash Equivalents
$
7,891,985

 
$
(6,723,656
)
 
$
7,040,576

Cash and Cash Equivalents at beginning of period
7,895,084

 
14,618,740

 
7,578,164

Cash and Cash Equivalents at end of period
$
15,787,069

 
$
7,895,084

 
$
14,618,740

 
 
 
 
 
 
Supplemental Disclosure of Cash Flow Information
 
 
 
 
 
Interest paid
$
10,780,150

 
$
12,900,901

 
$
7,873,333

Income taxes paid (net of refunds)
199,772

 
37,736

 
747,406

 
 
 
 
 
 
Non-Cash Investing Activities
 
 
 
 
 
Investment in other equity securities
$
(1,161,034
)
 
$

 
$

Change in accounts and other receivables

 
(450,000
)
 

Change in accounts payable and accrued expenses related to acquisition expenditures

 

 
(614,880
)
Change in accounts payable and accrued expenses related to issuance of financing and other notes receivable

 

 
(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
)
Change in accounts payable and accrued expenses related to debt financing costs
255,037

 

 
(43,039
)
Reinvestment of distributions by common stockholders in additional common shares
962,308

 
815,889

 
817,915







NAREIT FFO, FFO Adjusted for Securities Investment and AFFO Reconciliation (Unaudited)
 
For the Years Ended December 31,
 
2017
 
2016
 
2015
Net Income attributable to CorEnergy Stockholders
$
32,602,790

 
$
29,663,200

 
$
12,319,911

Less:
 
 
 
 
 
Preferred Dividend Requirements
7,953,988

 
4,148,437

 
3,848,828

Net Income attributable to Common Stockholders
$
24,648,802

 
$
25,514,763

 
$
8,471,083

Add:
 
 
 
 
 
Depreciation
23,292,713

 
21,704,275

 
18,351,011

Less:
 
 
 
 
 
Non-Controlling Interest attributable to NAREIT FFO reconciling items
1,632,546

 
1,645,819

 
1,645,819

NAREIT funds from operations (NAREIT FFO)
$
46,308,969

 
$
45,573,219

 
$
25,176,275

Add:
 
 
 
 
 
Distributions received from investment securities
949,646

 
1,028,452

 
1,021,010

Income tax expense (benefit) from investment securities
1,000,084

 
760,036

 
(196,270
)
Less:
 
 
 
 
 
Net distributions and dividend income
680,091

 
1,140,824

 
1,270,755

Net realized and unrealized gain (loss) on other equity securities
1,531,827

 
824,482

 
(1,063,613
)
Funds from operations adjusted for securities investments (FFO)
$
46,046,781

 
$
45,396,401

 
$
25,793,873

Add:
 
 
 
 
 
Loss of extinguishment of debt
336,933

 

 

Provision for loan losses, net of tax

 
4,409,359

 
12,526,701

Transaction costs
592,068

 
520,487

 
870,128

Amortization of debt issuance costs
1,661,181

 
2,025,478

 
1,822,760

Amortization of deferred lease costs
91,932

 
91,932

 
76,498

Accretion of asset retirement obligation
663,065

 
726,664

 
339,042

Amortization of above market leases

 

 
72,987

Non-cash (gain) loss associated with derivative instruments
33,763

 
(75,591
)
 
(70,333
)
Less:
 
 
 
 
 
Non-cash settlement of accounts payable
221,609

 

 

Income tax (expense) benefit
(1,345,234
)
 
619,349

 
493,847

EIP Lease Adjustment (1)

 

 
542,809

Non-Controlling Interest attributable to AFFO reconciling items
13,154

 
37,113

 
88,645

Adjusted funds from operations (AFFO)
$
50,536,194

 
$
52,438,268

 
$
40,306,355

 
 
 
 
 
 
Weighted Average Shares of Common Stock Outstanding:
 
 
 
 
 
Basic
11,900,516

 
11,901,985

 
10,685,892

Diluted
15,355,061

 
15,368,370

 
12,461,733

NAREIT FFO attributable to Common Stockholders
 
 
 
 
 
Basic
$
3.89

 
$
3.83

 
$
2.36

Diluted (2)
$
3.59

 
$
3.54

 
$
2.35

FFO attributable to Common Stockholders
 
 
 
 
 
Basic
$
3.87

 
$
3.81

 
$
2.41

Diluted (2)
$
3.57

 
$
3.53

 
$
2.40

AFFO attributable to Common Stockholders
 
 
 
 
 
Basic
$
4.25

 
$
4.41

 
$
3.77

Diluted (3)
$
3.81

 
$
3.93

 
$
3.56

(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 our sustainable AFFO. We believe that the portion of the EIP lease revenue attributable to return of capital, unless adjusted, overstates our distribution-paying capabilities and is not representative of sustainable EIP income over the life of the lease. We completed the sale of EIP on April 1, 2015.
(2) Diluted per share calculations include dilutive adjustments for convertible note interest expense, discount amortization and deferred debt issuance amortization.
(3) Diluted per share calculations include a dilutive adjustment for convertible note interest expense.