Jernigan Capital (NYSE: JCAP) reported Q4 EPS of $0.06, $0.01 worse than the analyst estimate of $0.07. Revenue for the quarter came in at $12.13 million versus the consensus estimate of $10.01 million.

“2019 was an outstanding year for the Company,” stated John Good, Chairman and Chief Executive Officer. “During the fourth quarter, we executed a definitive agreement for our internalization, subsequently closed on February 20, 2020, on terms that our board of directors strongly believed to be in the best interests of our stockholders and which were, in fact, very well received by our stockholders. We continued to strongly execute the Company’s business plan by assuming 100% ownership of 13 newly developed, state-of-the-art Generation V self-storage properties located in some of the best submarkets in the US, all of which we had previously financed. Annual revenue and adjusted earnings per share exceeded the midpoint of our updated full-year guidance ranges, with adjusted earnings per share at the top end of our guidance range. As of quarter-end, 58 facilities, representing 76% of self-storage projects that we have financed to date, were open and operating.”

“We expect 2020 to be a transformational year for JCAP, as the outstanding efforts of our team over the past five years continue to enhance stockholder value,” Mr. Good continued. “For the first time since our IPO, we are self-managed, which serves to better align management with our stockholders, right-size our G&A load and conform to industry best practices among publicly traded equity REITs. We currently own 38% of our portfolio and believe that, by year end, a majority of our assets will be wholly owned self-storage facilities. While we expect to continue our development investment program selectively, our institutional stockholders increasingly view us more as an owner-operator of self-storage properties, or an equity REIT, rather than as a specialty finance company, or mortgage REIT. This view was evidenced by our November 26, 2019 inclusion in the MSCI US REIT Index (RMZ), an index that notably only includes equity REITs as constituents. With the confluence of internalization, G&A right-sizing, increasing opportunities to buy developers out of well-located latest generation projects we have financed and substantial increases in institutional interest in JCAP, we believe the Company is well positioned to meaningfully increase stockholder value for years to come.”

GUIDANCE:

Jernigan Capital sees Q1 2020 EPS of $0.20-$0.29, versus the consensus of ($0.60). Jernigan Capital sees Q1 2020 revenue of $11.235-11.545 million, versus the consensus of $10.36 million.

Jernigan Capital sees FY2020 EPS of $0.52-$0.87, versus the consensus of ($0.37). Jernigan Capital sees FY2020 revenue of $49.1-51.125 million, versus the consensus of $42.89 million.

For earnings history and earnings-related data on Jernigan Capital (JCAP) click here.