UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of report (Date of earliest event reported):  May 3, 2017

CorEnergy Infrastructure Trust, Inc.
(Exact Name of Registrant as Specified in Its Charter)

Maryland	001-33292	20-3431375	
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)	

1100 Walnut, Ste. 3350, Kansas City, MO	64106	
(Address of Principal Executive Offices)	(Zip Code)	
 
(816) 875-3705
(Registrant’s Telephone Number, Including Area Code)

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).  Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02	Results of Operations and Financial Condition.	

On May 3, 2017, CorEnergy Infrastructure Trust, Inc. (the “Company”) issued a press release announcing its financial results for the first quarter ended March 31, 2017.  A copy of the press release is attached as Exhibit 99.1 to this Form 8-K.

The information in this Item 2.02, and Exhibit 99.1 to this Current Report on Form 8-K, shall not be deemed “filed” for the purposes of or otherwise subject to the liabilities under Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing of the Company under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01	Financial Statements and Exhibits.	

 	(d)	EXHIBITS.	

	99.1	Press Release dated May 3, 2017	

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 	CORENERGY INFRASTRUCTURE TRUST, INC.	 	
 	 	 	 	
Dated:  May 3, 2017	By:	 /s/ David J. Schulte	 	
 	 	David J. Schulte	 	
 	 	Chief Executive Officer and President	 	

Exhibit Index

Exhibit No.	 	Description	
99.1	 	Press Release dated May 3, 2017	

Exhibit 99.1
 
CorEnergy Announces First Quarter 2017 Results
 
KANSAS CITY, Mo - May 3, 2017 - CorEnergy Infrastructure Trust, Inc. (“CorEnergy” or the “Company”) today announced financial results for the first quarter, ended March 31, 2017.
 
Recent Developments
 
	·	Delivered Net Income of $0.56 per common share (basic and diluted) , NAREIT Funds from Operations (NAREIT FFO) 1 of $0.93 per share (diluted), Funds from Operations (FFO) 1 of $0.96 per share (diluted) and Adjusted Funds from Operations (AFFO) 1 of $1.00 per share (diluted)	
 
	·	Declared common stock dividend of $0.75 per share ($3.00 annualized) for the first quarter, in line with the previous six quarterly dividends	
 
	·	Commenced non-binding open season on the MoGas Pipeline to solicit interest in firm transportation contracts on a possible expansion project	
 
	·	Ultra Petroleum, the tenant of the Pinedale Liquids Gathering System, completed its restructuring and recapitalization	
 
	·	Energy XXI Gulf Coast, tenant of the Grand Isle Gathering System, announced several initiatives under new members of senior management	
 
	·	Closed offering of 2.8 million depositary shares of 7.375% Series A Cumulative Preferred Stock generating net proceeds of ~$67.6 million, after underwriting discounts and other estimated offering expenses	
 
	·	Paid down $44.0 million of outstanding balance on the Company’s credit facility with proceeds from the offering	
 
“When comparing the financial performance of CorEnergy in the first quarters of 2016 and 2017, despite the vastly different energy markets at those time periods, we are able to clearly see the consistency of our business model,” said CorEnergy CEO Dave Schulte. “Our team is actively assessing asset acquisitions which will further diversify those stable cash flows and augment our growth potential. In recent weeks, CorEnergy has positioned itself to act on such opportunities by raising capital in the preferred market and paying down the outstanding balance on our revolver.”
 
First Quarter 2017 Performance Summary

First quarter 2017 Total Revenue was $22.1 million, largely consistent with Total Revenue from the first quarter 2016. Net Income attributable to common stockholders for the first quarter 2017 was $6.6 million, or $0.56 per common share (basic and diluted). Net income for first quarter 2016 was adversely affected by a write-down of CorEnergy’s Four Wood and Black Bison Financing Notes. AFFO for the quarter ended March 31, 2017 was $13.3 million, or $1.00 per share (diluted), versus an AFFO for first quarter 2016 of $12.8 million or $0.96 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:

 	 	First Quarter
Ended March 31, 2017	 	
 	 	 	 	 	Per Share	 	
 	 	Total	 	 	Basic	 	 	Diluted	 	
Net Income (Attributable to Common Stockholders) 1	 	$	6,632,369	 	 	$	0.56	 	 	$	0.56	 	
NAREIT Funds from Operations (NAREIT FFO) 1	 	$	12,043,210	 	 	$	1.01	 	 	$	0.93	 	
Funds From Operations (FFO) 1	 	$	12,571,362	 	 	$	1.06	 	 	$	0.96	 	
Adjusted Funds From Operations (AFFO) 1	 	$	13,315,358	 	 	$	1.12	 	 	$	1.00	 	
 
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:    On April 12, 2017, Ultra Petroleum, the parent company of the tenant of the Pinedale Liquids Gathering System, announced its successful emergence from Chapter 11 bankruptcy. In support of its plan of reorganization, Ultra raised $2.98 billion in exit financing.
 
Grand Isle Gathering System: Energy XXI Gulf Coast has announced several initiatives including new members on its senior management team, the development of a third-party reserve report and a revised drilling plan.

MoGas Pipeline: On April 1, 2017, MoGas Pipeline LLC commenced a non-binding open season to solicit interest in firm transportation contracts on a possible expansion project on its pipeline which would extend its geographic reach. The non-binding open season is expected to conclude on June 30, 2017, at which time MoGas will assess the interest received.

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.  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.
 
Dividend Declaration
 
Common Stock: A first quarter common stock cash dividend of $0.75 ($3.00 annualized) was declared on April 26, 2017, payable on May 31, 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 first quarter, payable on May 31, 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.
 
First Quarter 2017 Earnings Conference Call

CorEnergy will host a conference call on Thursday, May 4, 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 10:59 p.m. Central Time on June 4, 2017 by dialing 877-481-4010 (for international, 1-919-882-2331). The Conference ID is 10338. 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 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.
 
Contacts
 
CorEnergy Infrastructure Trust, Inc.
Investor Relations
Lesley Schorgl, 877-699-CORR (2677)
info@corenergy.reit

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 a 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.
 
Consolidated Balance Sheets (Unaudited)
 
 	 	March 31, 2017	 	 	December 31, 2016	 	
Assets	 	 	 	 	 	 	
Leased property, net of accumulated depreciation of $57,203,700 and $52,219,717	 	$	484,274,386	 	 	$	489,258,369	 	
Property and equipment, net of accumulated depreciation of $10,131,025 and $9,292,712	 	 	115,574,493	 	 	 	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	 	 	8,563,297	 	 	 	9,287,209	 	
Cash and cash equivalents	 	 	11,375,702	 	 	 	7,895,084	 	
Accounts and other receivables	 	 	20,585,073	 	 	 	19,415,666	 	
Deferred costs, net of accumulated amortization of $2,537,722 and $2,261,151	 	 	2,855,478	 	 	 	3,132,050	 	
Prepaid expenses and other assets	 	 	841,936	 	 	 	354,230	 	
Deferred tax asset	 	 	2,057,135	 	 	 	1,758,289	 	
Goodwill	 	 	1,718,868	 	 	 	1,718,868	 	
Total Assets	 	$	649,346,368	 	 	$	650,732,571	 	
Liabilities and Equity	 	 	 	 	 	 	 	 	
Secured credit facilities, net (including $8,061,844 and $8,860,577 with related party)	 	$	86,992,738	 	 	$	89,387,985	 	
Unsecured convertible senior notes, net of discount and debt issuance costs of $2,558,308 and $2,755,105	 	 	111,441,691	 	 	 	111,244,895	 	
Asset retirement obligation	 	 	12,043,572	 	 	 	11,882,943	 	
Accounts payable and other accrued liabilities	 	 	4,349,149	 	 	 	2,416,283	 	
Management fees payable	 	 	1,745,294	 	 	 	1,735,024	 	
Unearned revenue	 	 	513,355	 	 	 	155,961	 	
Total Liabilities	 	$	217,085,799	 	 	$	216,823,091	 	
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 March 31, 2017, and December 31, 2016	 	$	56,250,000	 	 	 	56,250,000	 	
Capital stock, non-convertible, $0.001 par value; 11,893,146 and 11,886,216 shares issued and outstanding at March 31, 2017, and December 31, 2016 (100,000,000 shares authorized)	 	 	11,893	 	 	 	11,886	 	
Additional paid-in capital	 	 	348,182,779	 	 	 	350,217,746	 	
Accumulated other comprehensive loss	 	 	(8,224	)	 	 	(11,196	)	
Total CorEnergy Equity	 	 	404,436,448	 	 	 	406,468,436	 	
Non-controlling Interest	 	 	27,824,121	 	 	 	27,441,044	 	
Total Equity	 	 	432,260,569	 	 	 	433,909,480	 	
Total Liabilities and Equity	 	$	649,346,368	 	 	$	650,732,571	 	

Consolidated Statements of Income (Unaudited)

 	 	For the Three Months Ended	 	
 	 	March 31, 2017	 	 	March 31, 2016	 	
Revenue	 	 	 	 	 	 	
Lease revenue	 	$	17,066,526	 	 	$	16,996,072	 	
Transportation and distribution revenue	 	 	5,010,590	 	 	 	5,099,451	 	
Financing revenue	 	 	—	 	 	 	162,344	 	
Total Revenue	 	 	22,077,116	 	 	 	22,257,867	 	
Expenses	 	 	 	 	 	 	 	 	
Transportation and distribution expenses	 	 	1,335,570	 	 	 	1,362,325	 	
General and administrative	 	 	3,061,240	 	 	 	3,289,852	 	
Depreciation, amortization and ARO accretion expense	 	 	6,005,908	 	 	 	5,296,818	 	
Provision for loan loss and disposition	 	 	—	 	 	 	4,645,188	 	
Total Expenses	 	 	10,402,718	 	 	 	14,594,183	 	
Operating Income	 	$	11,674,398	 	 	$	7,663,684	 	
Other Income (Expense)	 	 	 	 	 	 	 	 	
Net distributions and dividend income	 	$	43,462	 	 	$	375,573	 	
Net realized and unrealized loss on other equity securities	 	 	(544,208	)	 	 	(1,628,752	)	
Interest expense	 	 	(3,454,397	)	 	 	(3,926,009	)	
Total Other Expense	 	 	(3,955,143	)	 	 	(5,179,188	)	
Income before income taxes	 	 	7,719,255	 	 	 	2,484,496	 	
Taxes	 	 	 	 	 	 	 	 	
Current tax benefit	 	 	(33,760	)	 	 	(677,731	)	
Deferred tax benefit	 	 	(298,846	)	 	 	(577,395	)	
Income tax benefit	 	 	(332,606	)	 	 	(1,255,126	)	
Net Income	 	 	8,051,861	 	 	 	3,739,622	 	
Less: Net Income attributable to non-controlling interest	 	 	382,383	 	 	 	348,501	 	
Net Income attributable to CorEnergy Stockholders	 	$	7,669,478	 	 	$	3,391,121	 	
Preferred dividend requirements	 	 	1,037,109	 	 	 	1,037,109	 	
Net Income attributable to Common Stockholders	 	$	6,632,369	 	 	$	2,354,012	 	
 	 	 	 	 	 	 	 	 	
Net Income	 	$	8,051,861	 	 	$	3,739,622	 	
Other comprehensive income (loss):	 	 	 	 	 	 	 	 	
Changes in fair value of qualifying hedges / AOCI attributable to CorEnergy stockholders	 	 	2,972	 	 	 	(211,076	)	
Changes in fair value of qualifying hedges / AOCI attributable to non-controlling interest	 	 	694	 	 	 	(49,350	)	
Net Change in Other Comprehensive Income (Loss)	 	$	3,666	 	 	$	(260,426	)	
Total Comprehensive Income	 	 	8,055,527	 	 	 	3,479,196	 	
Less: Comprehensive income attributable to non-controlling interest	 	 	383,077	 	 	 	299,151	 	
Comprehensive Income attributable to CorEnergy Stockholders	 	$	7,672,450	 	 	$	3,180,045	 	
Earnings Per Common Share:	 	 	 	 	 	 	 	 	
Basic	 	$	0.56	 	 	$	0.20	 	
Diluted	 	$	0.56	 	 	$	0.20	 	
Weighted Average Shares of Common Stock Outstanding:	 	 	 	 	 	 	 	 	
Basic	 	 	11,888,681	 	 	 	11,943,938	 	
Diluted	 	 	11,888,681	 	 	 	11,943,938	 	
Dividends declared per share	 	$	0.750	 	 	$	0.750	 	

Consolidated Statements of Cash Flows (Unaudited)

 	 	For the Three Months Ended	 	
 	 	March 31, 2017	 	 	March 31, 2016	 	
Operating Activities	 	 	 	 	 	 	
Net Income	 	$	8,051,861	 	 	$	3,739,622	 	
Adjustments to reconcile net income to net cash provided by operating activities:	 	 	 	 	 	 	 	 	
Deferred income tax, net	 	 	(298,846	)	 	 	(577,395	)	
Depreciation, amortization and ARO accretion	 	 	6,474,779	 	 	 	5,945,501	 	
Provision for loan loss	 	 	—	 	 	 	4,645,188	 	
Net distributions and dividend income, including recharacterization of income	 	 	148,649	 	 	 	(117,004	)	
Net realized and unrealized loss on other equity securities	 	 	544,208	 	 	 	1,628,751	 	
Unrealized gain on derivative contract	 	 	(27,073	)	 	 	(71,363	)	
Changes in assets and liabilities:	 	 	 	 	 	 	 	 	
Increase in accounts and other receivables	 	 	(1,169,407	)	 	 	(3,240,409	)	
Decrease in financing note accrued interest receivable	 	 	—	 	 	 	95,114	 	
Increase in prepaid expenses and other assets	 	 	(99,573	)	 	 	(161,354	)	
Increase in management fee payable	 	 	10,270	 	 	 	130,365	 	
Increase in accounts payable and other accrued liabilities	 	 	1,932,866	 	 	 	1,935,402	 	
Increase in unearned revenue	 	 	—	 	 	 	2,761,202	 	
Net cash provided by operating activities	 	$	15,567,734	 	 	$	16,713,620	 	
Investing Activities	 	 	 	 	 	 	 	 	
Purchases of property and equipment, net	 	 	—	 	 	 	(101,919	)	
Proceeds from asset foreclosure and sale	 	 	—	 	 	 	223,451	 	
Increase in financing notes receivable	 	 	—	 	 	 	(202,000	)	
Return of capital on distributions received	 	 	31,055	 	 	 	1,165	 	
Net cash provided (used) by investing activities	 	$	31,055	 	 	$	(79,303	)	
Financing Activities	 	 	 	 	 	 	 	 	
Debt financing costs	 	 	—	 	 	 	(224,586	)	
Dividends paid on Series A preferred stock	 	 	(1,037,109	)	 	 	(1,037,109	)	
Dividends paid on common stock	 	 	(8,667,329	)	 	 	(8,795,460	)	
Advances on revolving line of credit	 	 	—	 	 	 	44,000,000	 	
Principal payments on secured credit facilities	 	 	(2,413,733	)	 	 	(52,346,250	)	
Net cash used by financing activities	 	$	(12,118,171	)	 	$	(18,403,405	)	
Net Change in Cash and Cash Equivalents	 	$	3,480,618	 	 	$	(1,769,088	)	
Cash and Cash Equivalents at beginning of period	 	 	7,895,084	 	 	 	14,618,740	 	
Cash and Cash Equivalents at end of period	 	$	11,375,702	 	 	$	12,849,652	 	
 	 	 	 	 	 	 	 	 	
Supplemental Disclosure of Cash Flow Information	 	 	 	 	 	 	 	 	
Interest paid	 	$	1,047,357	 	 	$	1,398,422	 	
Income taxes paid (net of refunds)	 	$	—	 	 	$	10,683	 	
 	 	 	 	 	 	 	 	 	
Non-Cash Investing Activities	 	 	 	 	 	 	 	 	
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	 	 	 	 	 	 	 	 	
Reinvestment of distributions by common stockholders in additional common shares	 	$	247,333	 	 	$	159,313	 	

NAREIT FFO, FFO Adjusted for Securities Investment and AFFO Reconciliation

 	 	For the Three Months Ended	 	
 	 	March 31, 2017	 	 	March 31, 2016	 	
Net Income attributable to CorEnergy Stockholders	 	$	7,669,478	 	 	$	3,391,121	 	
Less:	 	 	 	 	 	 	 	 	
Preferred Dividend Requirements	 	 	1,037,109	 	 	 	1,037,109	 	
Net Income attributable to Common Stockholders	 	 	6,632,369	 	 	 	2,354,012	 	
Add:	 	 	 	 	 	 	 	 	
Depreciation	 	 	5,822,296	 	 	 	5,089,753	 	
Less:	 	 	 	 	 	 	 	 	
Non-Controlling Interest attributable to NAREIT FFO reconciling items	 	 	411,455	 	 	 	411,455	 	
NAREIT funds from operations (NAREIT FFO)	 	 	12,043,210	 	 	 	7,032,310	 	
Add:	 	 	 	 	 	 	 	 	
Distributions received from investment securities	 	 	223,166	 	 	 	259,734	 	
Income tax expense (benefit) from investment securities	 	 	(195,760	)	 	 	(475,637	)	
Less:	 	 	 	 	 	 	 	 	
Net distributions and dividend income	 	 	43,462	 	 	 	375,573	 	
Net realized and unrealized gain (loss) on other equity securities	 	 	(544,208	)	 	 	(1,628,752	)	
Funds from operations adjusted for securities investments (FFO)	 	 	12,571,362	 	 	 	8,069,586	 	
Add:	 	 	 	 	 	 	 	 	
Provision for loan losses, net of tax	 	 	—	 	 	 	4,040,081	 	
Transaction costs	 	 	258,782	 	 	 	36,915	 	
Amortization of debt issuance costs	 	 	468,871	 	 	 	617,097	 	
Amortization of deferred lease costs	 	 	22,983	 	 	 	22,983	 	
Accretion of asset retirement obligation	 	 	160,629	 	 	 	184,082	 	
Income tax benefit	 	 	(136,846	)	 	 	(174,382	)	
Unrealized (gain) loss associated with derivative instruments	 	 	(27,072	)	 	 	23,875	 	
Less:	 	 	 	 	 	 	 	 	
Non-Controlling Interest attributable to AFFO reconciling items	 	 	3,351	 	 	 	36,804	 	
Adjusted funds from operations (AFFO)	 	$	13,315,358	 	 	$	12,783,433	 	
 	 	 	 	 	 	 	 	 	
Weighted Average Shares of Common Stock Outstanding:	 	 	 	 	 	 	 	 	
Basic	 	 	11,888,681	 	 	 	11,943,938	 	
Diluted (1)	 	 	15,343,226	 	 	 	15,428,787	 	
NAREIT FFO attributable to Common Stockholders	 	 	 	 	 	 	 	 	
Basic	 	$	1.01	 	 	$	0.59	 	
Diluted (1)	 	$	0.93	 	 	$	0.59	 	
FFO attributable to Common Stockholders	 	 	 	 	 	 	 	 	
Basic	 	$	1.06	 	 	$	0.68	 	
Diluted (1)	 	$	0.96	 	 	$	0.67	 	
AFFO attributable to Common Stockholders	 	 	 	 	 	 	 	 	
Basic	 	$	1.12	 	 	$	1.07	 	
Diluted (1)	 	$	1.00	 	 	$	0.96	 	

(1) 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.