Annual report pursuant to Section 13 and 15(d)

SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION

v3.10.0.1
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
12 Months Ended
Dec. 31, 2018
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract]  
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION - CorEnergy Infrastructure Trust, Inc.
 
 
 
 
 
 
Initial Cost to Company
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount Carried at Close of Period December 31, 2018
 
 
 
 
 
 
 
 
Description
 
Location
 
Encumbrances
 
Land
 
Building & Fixtures
 
Improvements / Adjustments (4)
 
Land
 
Building & Fixtures
 
Total
 
Accumulated Depreciation
 
Investment in Real Estate, net, at 12/31/18
 
Date Acquired
 
Life on which depreciation in latest income statement is computed
Pinedale LGS (1)(5)
 
Pinedale, WY
 
$
37,472,000

 
$
105,485,063

 
$
125,119,062

 
$

 
$
105,485,063

 
$
125,119,062

 
$
230,604,125

 
$
53,501,538

 
$
177,102,587

 
2012
 
26 years
United Property Systems (4)
 
St. Louis, MO
 

 
210,000

 
1,188,000

 
78,621

 
210,000

 
1,266,621

 
1,476,621

 
138,096

 
1,338,525

 
2014
 
40 years
Grand Isle Gathering System (2)(3)(4)
 
Gulf of Mexico
 

 
960,000

 
258,471,397

 
(6,143,693
)
 
960,000

 
252,327,704

 
253,287,704

 
33,514,461

 
219,773,243

 
2015
 
27 years
 
 
 
 
$
37,472,000

 
$
106,655,063

 
$
384,778,459

 
$
(6,065,072
)
 
$
106,655,063

 
$
378,713,387

 
$
485,368,450

 
$
87,154,095

 
$
398,214,355

 
 
 
 
(1) In connection with the asset acquisition, CorEnergy and Pinedale LP incurred acquisition costs of $2,557,910, which are included in the total asset balance.
(2) In connection with the asset acquisition, Grand Isle Gathering System incurred acquisition costs of $1,931,396, which are included in the total asset balance.
(3) Initial costs associated with the GIGS asset include amounts capitalized related to an acquired asset retirement obligation (ARO). The negative subsequent adjustment relates to (i) downward revisions of the ARO based on periodic reevaluation as required under FASB ASC 410-20 and (ii) the settlement of a portion of the ARO when a segment of the GIGS pipeline system was decommissioned during the fourth quarter of 2018.
(4) These 2 properties serve as collateral under the CorEnergy Credit Facility. There are no amounts outstanding on the credit facility as of December 31, 2018.
(5) The amount outstanding for the Amended Pinedale Term Credit Facility is $37,472,000 as of December 31, 2018.
NOTES TO SCHEDULE III - CONSOLIDATED REAL ESTATE AND ACCUMULATED DEPRECIATION
Reconciliation of Real Estate and Accumulated Depreciation
 
For the Years Ended December 31,
 
2018
 
2017
 
2016
Investment in real estate:
 
 
 
 
 
Balance, beginning of year
$
538,112,220

 
$
541,478,086

 
$
543,095,478

Addition: Acquisitions and developments
3,599

 
9,649

 
65,371

Deduction: Dispositions and other(1)(2)
(52,747,369
)
 
(3,375,515
)
 
(1,682,763
)
Balance, end of year
$
485,368,450

 
$
538,112,220

 
$
541,478,086

Accumulated depreciation:
 
 
 
 
 
Balance, beginning of year
$
72,155,753

 
$
52,219,717

 
$
33,869,263

Addition: Depreciation
20,986,461

 
19,936,036

 
18,350,454

Deduction: Dispositions and other(2)
(5,988,119
)
 

 

Balance, end of year
$
87,154,095

 
$
72,155,753

 
$
52,219,717

(1) The Grand Isle Gathering System had a change in estimate related to the ARO in 2018, 2017 and 2016. Refer to Note 12 ("Asset Retirement Obligation") for further details.
(2) On December 21, 2018, the Company sold its Portland Terminal Facility with a net carrying value of $45.7 million (i.e. gross investment of $51.7 million less accumulated depreciation of $6.0 million). Refer to Note 3 ("Leased Properties and Leases") for further details.

The aggregate cost of the properties is approximately $4.2 million lower for federal income tax purposes at December 31, 2018. The tax basis of the properties is unaudited.