CorEnergy Infrastructure Trust, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Other Securities (Tables)

Fair Value of Other Securities (Tables)

6 Months Ended

Jun. 30, 2013

Assets and liabilities measured on a recurring basis

The following tables provide the fair value measurements of applicable Company assets and liabilities by level within the fair value hierarchy as of June 30, 2013, and November 30, 2012. These assets and liabilities are measured on a recurring basis.



June 30, 2013
			Fair Value
	June 30, 2013		Level 1		Level 2		Level 3
Investments:
Trading securities	$	—	$	—	$	—	$	—
Other equity securities	21,239,935		—		—		21,239,935
Total Assets	$	21,239,935	$	—	$	—	$	21,239,935



November 30, 2012
	November 30, 2012		Fair Value
	November 30, 2012		Level 1		Level 2		Level 3
Assets:
Trading securities	$	55,219,411	$	27,480,191	$	27,739,220	$	—
Other equity securities	19,866,621		—		—		19,866,621
Total Assets	$	75,086,032	$	27,480,191	$	27,739,220	$	19,866,621

The changes for all Level 3 assets measured at fair value on a recurring basis using significant unobservable inputs

The changes for all Level 3 securities measured at fair value on a recurring basis using significant unobservable inputs for the six months ended June 30, 2013 are as follows:



	For the Six Months Ended
	June 30, 2013			May 31, 2012
Fair value beginning balance	$	19,707,126		$	41,856,730
Total realized and unrealized gains included in net income	2,087,251			12,906,601
Return of capital adjustments impacting cost basis of securities	(554,442		)	(1,448,742		)
Fair value ending balance	$	21,239,935		$	53,314,589
Changes in unrealized gains, included in net income, relating to securities still held (1)	$	2,087,251		$	12,906,601

Quantitative table for Valuation Techniques

The following table summarizes the significant unobservable inputs that the Company uses to value its portfolio investments categorized as Level 3 as of June 30, 2013.

Quantitative Table for Valuation Techniques

Significant Unobservable Inputs Used To Value Portfolio Investments

Unobservable Inputs

Range

Weighted Average

Assets at Fair Value

Fair Value

Valuation Technique

Low

High

Other equity securities, at fair value

21,239,935

Public company historical EBITDA analysis

Historical EBITDA Valuation Multiples

9.4x

13.2x

11.3x

Public company projected EBITDA analysis

Projected EBITDA Valuation Multiples

8.8x

11.5x

10.15x

M&A company analysis

EV/LTM 2012 EBITDA

8.8x

10.6x

9.7x

Discounted cash flow

Weighted Average Cost of Capital

9.5%

14.0%

11.8%

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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