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):  November 1, 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 November 1, 2017 , CorEnergy Infrastructure Trust, Inc. (the “Company”) issued a press release announcing its financial results for the third quarter ended September 30, 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.	
 	 	
Exhibit No.	Description	
99.1	Press Release dated November 1, 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: November 1, 2017	By:	/s/ David J. Schulte	 	
 	 	David J. Schulte	 	
 	 	Chief Executive Officer and President	 	

 

CorEnergy Announces Third Quarter 2017 Results
KANSAS CITY, MO - November 1, 2017 - CorEnergy Infrastructure Trust, Inc. (“CorEnergy” or the “Company”) today announced financial results for the third quarter, ended September 30, 2017 .
Third Quarter Performance Summary
Third quarter financial highlights are as follows:

												
 	For the Three Months Ended	
 	September 30, 2017	
 	 	 	Per Share	
 	Total	 	Basic	 	Diluted	
Net Income (Attributable to Common Stockholders) 1	$	6,780,409		 	$	0.57		 	$	0.57		
NAREIT Funds from Operations (NAREIT FFO) 1	$	12,192,731		 	$	1.02		 	$	0.94		
Funds From Operations (FFO) 1	$	11,471,031		 	$	0.96		 	$	0.89		
Adjusted Funds From Operations (AFFO) 1	$	11,896,606		 	$	1.00		 	$	0.90		
Dividends Declared to Common Stockholders	 	 	$	0.75		 	 	
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

•	Declared common stock dividend of $0.75 per share ($3.00 annualized) for the third quarter 2017, in line with the previous eight quarterly dividends	
		
•	Received first variable rent payments under the Pinedale LGS lease	
		
•	Portland Terminal tenant, Arc Logistics, announced acquisition by Zenith Energy U.S., LP	

“Ultra Petroleum’s success in increasing production, following its bankruptcy, has generated volumes above our threshold for participating rents. This further supports our conviction in the prolific Pinedale field and our mission critical gathering system,” said CorEnergy CEO Dave Schulte. “Our team is assessing several high-quality acquisition opportunities that fit our portfolio

criteria and which we believe could achieve long-term value for our shareholders. We have repositioned our balance sheet this year and have over $145 million of liquidity to execute a transaction efficiently.”
Dividend Declaration
Common Stock: A third quarter 2017 dividend of $0.75 per share (or $3.00 per share annualized) was declared for CorEnergy’s common stock. The dividend is payable on November 30, 2017, to shareholders of record on November 15, 2017.
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 third quarter. The preferred stock dividend, which equates to an annual dividend payment of $1.84375 per depositary share, is payable on November 30, 2017, to shareholders of record on November 15, 2017.
Portfolio Update
Portland Terminal & Lightfoot Partners: On August 29, 2017, the parent company of our Portland Terminal tenant, Arc Logistics, announced its definitive agreement to be acquired by Zenith Energy U.S., LP. The merger is targeted to close by February 7, 2018. It is not clear whether the proposed merger will have an impact on the Portland Terminal Lease.
In connection with the acquisition, units of Lightfoot Capital Partners LP and GP will also be purchased by Zenith Energy. CorEnergy owns approximately 6.6% of the LP and 1.5% of the GP. Accordingly, we will receive our pro-rata share of the proceeds upon the closing of the transaction. As of September 30, 2017, the fair value of CorEnergy’s interest in the Lightfoot entities was $10.5 million, based on the proposed transaction terms. This value is contingent upon the outcome of the Gulf LNG litigation and includes a required reinvestment in the ownership of Arc Terminal Joliet Holdings.
Grand Isle Gathering System: Energy XXI Gulf Coast announced that no significant damage was incurred as a result of Hurricane Harvey or Hurricane Nate. However, in preparation for and during the course of the storms, production was shut in by both EXXI and third-party operators, primarily in the western region for Hurricane Harvey and in all fields for Hurricane Nate. Fields served by the GIGS are located primarily in the central region of EXXI operations.
Pinedale Liquids Gathering System: CorEnergy received variable rent payments for the utilization of the Pinedale LGS by Ultra Petroleum. The payments were not material, but this is the first occurrence of volumes reaching thresholds, above which payments in addition to base rents are generated.

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.
Third Quarter 2017 Earnings Conference Call
CorEnergy will host a conference call on Thursday, November 2, 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 1:00 p.m. Central Time on December 2, 2017 by dialing 877-481-4010 (for international, 1-919-882-2331). The Conference ID is 21908 . 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
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 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, 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	
 	 	 	 	
 	September 30, 2017	 	December 31, 2016	
Assets	(Unaudited)	 	 	
Leased property, net of accumulated depreciation of $67,171,667 and $52,219,717	$	474,306,419		 	$	489,258,369		
Property and equipment, net of accumulated depreciation of $11,803,423 and $9,292,712	113,943,021		 	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	10,457,982		 	9,287,209		
Cash and cash equivalents	15,533,509		 	7,895,084		
Deferred rent receivable	20,260,686		 	14,876,782		
Accounts and other receivables	3,853,572		 	4,538,884		
Deferred costs, net of accumulated amortization of $457,277 and $2,261,151	3,657,017		 	3,132,050		
Prepaid expenses and other assets	815,458		 	354,230		
Deferred tax asset, net	1,892,611		 	1,758,289		
Goodwill	1,718,868		 	1,718,868		
Total Assets	$	647,939,143		 	$	650,732,571		
Liabilities and Equity	 	 	 	
Secured credit facilities, net (including $7,534,177 and $8,860,577 with related party)	$	17,534,177		 	$	89,387,985		
Unsecured convertible senior notes, net of discount and debt issuance costs of $2,164,715 and $2,755,105	111,835,285		 	111,244,895		
Asset retirement obligation	12,375,105		 	11,882,943		
Accounts payable and other accrued liabilities	4,634,946		 	2,416,283		
Management fees payable	1,761,756		 	1,735,024		
Unearned revenue	543,050		 	155,961		
Total Liabilities	$	148,684,319		 	$	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 September 30, 2017 and December 31, 2016, respectively	$	130,000,000		 	$	56,250,000		
Capital stock, non-convertible, $0.001 par value; 11,909,244 and 11,886,216 shares issued and outstanding at September 30, 2017 and December 31, 2016 (100,000,000 shares authorized)	11,909		 	11,886		
Additional paid-in capital	341,678,080		 	350,217,746		
Accumulated other comprehensive loss	(2,180	)	 	(11,196	)	
Total CorEnergy Equity	471,687,809		 	406,468,436		
Non-controlling interest	27,567,015		 	27,441,044		
Total Equity	499,254,824		 	433,909,480		
Total Liabilities and Equity	$	647,939,143		 	$	650,732,571		

	
																
Consolidated Statements of Income and Comprehensive Income (Unaudited)	
 	 	 	 	
 	For the Three Months Ended	 	For the Nine Months Ended	
 	September 30, 2017	 	September 30, 2016	 	September 30, 2017	 	September 30, 2016	
Revenue	 	 	 	 	 	 	 	
Lease revenue	$	17,173,676		 	$	16,996,155		 	$	51,290,294		 	$	50,988,299		
Transportation and distribution revenue	5,270,628		 	5,119,330		 	15,056,998		 	15,283,461		
Financing revenue	—		 	—		 	—		 	162,344		
Total Revenue	22,444,304		 	22,115,485		 	66,347,292		 	66,434,104		
Expenses	 	 	 	 	 	 	 	
Transportation and distribution expenses	2,384,182		 	1,482,161		 	5,082,732		 	4,222,792		
General and administrative	2,632,546		 	3,021,869		 	8,252,125		 	9,084,961		
Depreciation, amortization and ARO accretion expense	6,017,664		 	5,744,266		 	18,029,567		 	16,778,109		
Provision for loan loss and disposition	—		 	—		 	—		 	5,014,466		
Total Expenses	11,034,392		 	10,248,296		 	31,364,424		 	35,100,328		
Operating Income	$	11,409,912		 	$	11,867,189		 	$	34,982,868		 	$	31,333,776		
Other Income (Expense)	 	 	 	 	 	 	 	
Net distributions and dividend income	$	213,040		 	$	277,523		 	$	477,942		 	$	867,265		
Net realized and unrealized gain on other equity securities	1,340,197		 	1,430,858		 	1,410,623		 	1,001,771		
Interest expense	(2,928,036	)	 	(3,520,856	)	 	(9,585,270	)	 	(10,987,677	)	
Loss on extinguishment of debt	(234,433	)	 	—		 	(234,433	)	 	—		
Total Other Expense	(1,609,232	)	 	(1,812,475	)	 	(7,931,138	)	 	(9,118,641	)	
Income before income taxes	9,800,680		 	10,054,714		 	27,051,730		 	22,215,135		
Taxes	 	 	 	 	 	 	 	
Current tax expense (benefit)	65,131		 	95,125		 	89,022		 	(378,954	)	
Deferred tax expense (benefit)	126,440		 	388,027		 	(134,322	)	 	17,418		
Income tax expense (benefit), net	191,571		 	483,152		 	(45,300	)	 	(361,536	)	
Net Income	9,609,109		 	9,571,562		 	27,097,030		 	22,576,671		
Less: Net Income attributable to non-controlling interest	431,825		 	340,377		 	1,250,096		 	999,838		
Net Income attributable to CorEnergy Stockholders	$	9,177,284		 	$	9,231,185		 	$	25,846,934		 	$	21,576,833		
Preferred dividend requirements	2,396,875		 	1,037,109		 	5,557,113		 	3,111,327		
Net Income attributable to Common Stockholders	$	6,780,409		 	$	8,194,076		 	$	20,289,821		 	$	18,465,506		
 	 	 	 	 	 	 	 	
Net Income	$	9,609,109		 	$	9,571,562		 	$	27,097,030		 	$	22,576,671		
Other comprehensive income (loss):	 	 	 	 	 	 	 	
Changes in fair value of qualifying hedges / AOCI attributable to CorEnergy stockholders	3,038		 	3,039		 	9,016		 	(205,032	)	
Changes in fair value of qualifying hedges / AOCI attributable to non-controlling interest	710		 	710		 	2,106		 	(47,937	)	
Net Change in Other Comprehensive Income (Loss)	$	3,748		 	$	3,749		 	$	11,122		 	$	(252,969	)	
Total Comprehensive Income	9,612,857		 	9,575,311		 	27,108,152		 	22,323,702		
Less: Comprehensive income attributable to non-controlling interest	432,535		 	341,087		 	1,252,202		 	951,901		
Comprehensive Income attributable to CorEnergy Stockholders	$	9,180,322		 	$	9,234,224		 	$	25,855,950		 	$	21,371,801		
Earnings Per Common Share:	 	 	 	 	 	 	 	
Basic	$	0.57		 	$	0.69		 	$	1.71		 	$	1.55		
Diluted	$	0.57		 	$	0.68		 	$	1.71		 	$	1.55		
Weighted Average Shares of Common Stock Outstanding:	 	 	 	 	 	 	 	
Basic	11,904,933		 	11,872,729		 	11,896,803		 	11,909,431		
Diluted	11,904,933		 	15,327,274		 	11,896,803		 	11,909,431		
Dividends declared per share	$	0.750		 	$	0.750		 	$	2.250		 	$	2.250		

	
								
Consolidated Statements of Cash Flows (Unaudited)	
 	For the Nine Months Ended	
 	September 30, 2017	 	September 30, 2016	
Operating Activities	 	 	 	
Net Income	$	27,097,030		 	$	22,576,671		
Adjustments to reconcile net income to net cash provided by operating activities:	 	 	 	
Deferred income tax, net	(134,322	)	 	17,418		
Depreciation, amortization and ARO accretion	19,350,053		 	18,334,719		
Provision for loan loss	—		 	5,014,466		
Loss on extinguishment of debt	234,433		 	—		
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	)	
Net realized and unrealized gain on other equity securities	(1,410,623	)	 	(1,001,771	)	
Unrealized loss (gain) on derivative contract	13,154		 	(105,567	)	
Common stock issued under directors compensation plan	67,500		 	60,000		
Changes in assets and liabilities:	 	 	 	
Increase in deferred rent receivable	(5,383,904	)	 	(6,564,143	)	
Decrease in accounts and other receivables	685,312		 	1,130,115		
Decrease in financing note accrued interest receivable	—		 	95,114		
(Increase) decrease in prepaid expenses and other assets	(105,866	)	 	49,227		
Increase (decrease) in management fee payable	26,732		 	(20,148	)	
Increase in accounts payable and other accrued liabilities	2,437,100		 	1,913,875		
Increase in unearned revenue	29,695		 	343,295		
Net cash provided by operating activities	$	42,837,537		 	$	41,654,565		
Investing Activities	 	 	 	
Proceeds from assets and liabilities held for sale	—		 	644,934		
Purchases of property and equipment, net	(50,924	)	 	(475,581	)	
Proceeds from asset foreclosure and sale	—		 	223,451		
Increase in financing notes receivable	—		 	(202,000	)	
Return of capital on distributions received	91,201		 	3,393		
Net cash provided by investing activities	$	40,277		 	$	194,197		
Financing Activities	 	 	 	
Debt financing costs	(1,342,681	)	 	(193,000	)	
Net offering proceeds on Series A preferred stock	71,161,531		 	—		
Repurchases of common stock	—		 	(2,041,851	)	
Repurchases of convertible debt	—		 	(899,960	)	
Dividends paid on Series A preferred stock	(5,830,859	)	 	(3,111,327	)	
Dividends paid on common stock	(26,034,749	)	 	(26,311,075	)	
Distributions to non-controlling interest	(1,126,231	)	 	—		
Advances on revolving line of credit	10,000,000		 	44,000,000		
Payments on revolving line of credit	(44,000,000	)	 	—		
Principal payments on secured credit facilities	(38,066,400	)	 	(57,802,535	)	
Net cash used in financing activities	$	(35,239,389	)	 	$	(46,359,748	)	
Net Change in Cash and Cash Equivalents	$	7,638,425		 	$	(4,510,986	)	
Cash and Cash Equivalents at beginning of period	7,895,084		 	14,618,740		
Cash and Cash Equivalents at end of period	$	15,533,509		 	$	10,107,754		

	
								
 	For the Nine Months Ended	
 	September 30, 2017	 	September 30, 2016	
Supplemental Disclosure of Cash Flow Information	 	 	 	
Interest paid	$	6,301,929		 	$	7,829,619		
Income taxes paid (net of refunds)	197,202		 	42,200		
 	 	 	 	
Non-Cash Investing Activities	 	 	 	
Change in accounts and other receivables	$	—		 	$	(450,000	)	
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	$	727,518		 	$	494,251		

	
																
NAREIT FFO, FFO Adjusted for Securities Investment and AFFO Reconciliation (Unaudited)	
 	For the Three Months Ended	 	For the Nine Months Ended	
 	September 30, 2017	 	September 30, 2016	 	September 30, 2017	 	September 30, 2016	
Net Income attributable to CorEnergy Stockholders	$	9,177,284		 	$	9,231,185		 	$	25,846,934		 	$	21,576,833		
Less:	 	 	 	 	 	 	 	
Preferred Dividend Requirements	2,396,875		 	1,037,109		 	5,557,113		 	3,111,327		
Net Income attributable to Common Stockholders	$	6,780,409		 	$	8,194,076		 	$	20,289,821		 	$	18,465,506		
Add:	 	 	 	 	 	 	 	
Depreciation	5,823,777		 	5,537,179		 	17,468,456		 	16,166,599		
Less:	 	 	 	 	 	 	 	
Non-Controlling Interest attributable to NAREIT FFO reconciling items	411,455		 	411,455		 	1,234,365		 	1,234,365		
NAREIT funds from operations (NAREIT FFO)	$	12,192,731		 	$	13,319,800		 	$	36,523,912		 	$	33,397,740		
Add:	 	 	 	 	 	 	 	
Distributions received from investment securities	242,412		 	278,782		 	717,791		 	753,655		
Income tax expense from investment securities	589,125		 	645,083		 	703,987		 	703,211		
Less:	 	 	 	 	 	 	 	
Net distributions and dividend income	213,040		 	277,523		 	477,942		 	867,265		
Net realized and unrealized gain on other equity securities	1,340,197		 	1,430,858		 	1,410,623		 	1,001,771		
Funds from operations adjusted for securities investments (FFO)	$	11,471,031		 	$	12,535,284		 	$	36,057,125		 	$	32,985,570		
Add:	 	 	 	 	 	 	 	
Loss on extinguishment of debt	234,433		 	—		 	234,433		 	—		
Provision for loan losses, net of tax	—		 	—		 	—		 	4,409,359		
Transaction costs	35,822		 	33,984		 	505,873		 	71,899		
Amortization of debt issuance costs	382,745		 	469,004		 	1,320,487		 	1,556,607		
Amortization of deferred lease costs	22,983		 	22,983		 	68,949		 	68,949		
Accretion of asset retirement obligation	170,904		 	184,104		 	492,162		 	542,561		
Unrealized (gain) loss associated with derivative instruments	29,608		 	(60,513	)	 	13,155		 	(2,818	)	
Less:	 	 	 	 	 	 	 	
Non-cash settlement of accounts payable	50,000		 	—		 	221,609		 	—		
Income tax benefit	397,554		 	161,931		 	749,287		 	459,640		
Non-Controlling Interest attributable to AFFO reconciling items	3,366		 	(10,715	)	 	10,075		 	35,153		
Adjusted funds from operations (AFFO)	$	11,896,606		 	$	13,033,630		 	$	37,711,213		 	$	39,137,334		
 	 	 	 	 	 	 	 	
Weighted Average Shares of Common Stock Outstanding:	 	 	 	 	 	 	 	
Basic	11,904,933		 	11,872,729		 	11,896,803		 	11,909,431		
Diluted	15,359,479		 	15,327,274		 	15,351,348		 	15,379,792		
NAREIT FFO attributable to Common Stockholders	 	 	 	 	 	 	 	
Basic	$	1.02		 	$	1.12		 	$	3.07		 	$	2.80		
Diluted (1)	$	0.94		 	$	1.01		 	$	2.81		 	$	2.60		
FFO attributable to Common Stockholders	 	 	 	 	 	 	 	
Basic	$	0.96		 	$	1.06		 	$	3.03		 	$	2.77		
Diluted (1)	$	0.89		 	$	0.96		 	$	2.78		 	$	2.57		
AFFO attributable to Common Stockholders	 	 	 	 	 	 	 	
Basic	$	1.00		 	$	1.10		 	$	3.17		 	$	3.29		
Diluted (2)	$	0.90		 	$	0.98		 	$	2.85		 	$	2.94		
(1) Diluted per share calculations include dilutive adjustments for convertible note interest expense, discount amortization and deferred debt issuance amortization.	
(2) Diluted per share calculations include a dilutive adjustment for convertible note interest expense.