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): August 2, 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 August 2, 2017, CorEnergy Infrastructure Trust, Inc. (the “Company”) issued a press release announcing its financial results for the second quarter ended June 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.	
 	 	
99.1	Press Release dated August 2, 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:  August 2, 2017	By:	/s/ David J. Schulte	 	
 	 	David J. Schulte	 	
 	 	Chief Executive Officer and President	 	

Exhibit Index

	
			
Exhibit No.	 	Description	
99.1	 	Press Release dated August 2, 2017	

CorEnergy Announces Second Quarter 2017 Results and Dividends
KANSAS CITY, Mo - August 2, 2017 - CorEnergy Infrastructure Trust, Inc. (“CorEnergy” or the “Company”) today announced financial results and dividend declarations for the second quarter, ended June 30, 2017.
Second Quarter Performance Summary
Second quarter financial highlights are as follows:

												
 	For the Three Months Ended	
 	June 30, 2017	
 	 	 	Per Share	
 	Total	 	Basic	 	Diluted	
Net Income (Attributable to Common Stockholders) 1	$	6,877,043		 	$	0.58		 	$	0.58		
NAREIT Funds from Operations (NAREIT FFO) 1	$	12,287,971		 	$	1.03		 	$	0.94		
Funds From Operations (FFO) 1	$	12,014,732		 	$	1.01		 	$	0.93		
Adjusted Funds From Operations (AFFO) 1	$	12,499,249		 	$	1.05		 	$	0.94		
 	 	 	 	 	 	
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

•	Underwriters exercised partial over-allotment option of the 7.375% Series A Preferred Stock offering	
		
•	Expanded and enhanced business development and accounting teams	
		
•	Concluded non-binding open season on the MoGas Pipeline	
		
•	Amended and restated Credit Facility agreement	
		
•	Repaid term loan, reducing leverage ratios	

“Recently, CorEnergy executed a number of financial and organizational initiatives. We completed a preferred stock offering and used the proceeds to refinance our credit facility. We expanded our business development team and enhanced our accounting, tax and SEC compliance team,” said CorEnergy CEO Dave Schulte. “As of July 31, 2017, CorEnergy had approximately $146.7 million of liquidity for potential acquisitions.”

Dividend Declaration
Common Stock: A second 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 August 31, 2017, to shareholders of record on August 17, 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 second quarter. The preferred stock dividend, which equates to an annual dividend payment of $1.84375 per depositary share, is payable on August 31, 2017, to shareholders of record on August 17, 2017.
Financing Update

7.375% Series A Cumulative Redeemable Preferred Stock: On May 10, 2017, the underwriters of CorEnergy’s April 2017 preferred equity issuance purchased an additional 150,000 depositary shares at $25.00 per share, partially exercising their overallotment option. This increased the total number of depositary shares issued in the offering to 2.95 million shares and the total proceeds, net of underwriters’ discounts and other offering expenses, to approximately $71.2 million.

CorEnergy Credit Facility: On July 28, 2017, CorEnergy entered in to an amended and restated credit facility agreement (the “Credit Facility”), which provides revolving borrowing commitments of up to $161.0 million, subject to the limitations of a borrowing base. The Company’s prior credit facility was comprised of $108.0 million in revolving borrowing commitments and a $45.0 million term loan.

The Credit Facility has a maturity date of July 28, 2022, subject to a springing maturity on February 28, 2020, and thereafter, if the Company fails to maintain certain liquidity requirements from the springing maturity date through the maturity date of the Company’s convertible notes on June 15, 2020. Borrowings under the Credit Facility will bear interest on the outstanding principal amount using a LIBOR pricing grid, which is expected to equal a LIBOR rate plus an applicable margin of 2.75%-3.75%. There is a fee of 50 basis points on unused portions of the Credit Facility.

Portfolio Update
MoGas Pipeline: Following the conclusion of its open season on June 30, 2017, MoGas Pipeline does not expect any  immediate  incremental revenue to result from that initiative, but MoGas continues to explore means to offset the decline in revenue from the amended Laclede contract, which will become effective  November 1, 2018 .  Such opportunities may include shippers transporting gas across MoGas to strike on Rockies, Mid-continent, Eastern and Gulf Coast basin basis differentials given its strategic location and numerous pipeline interconnects, new end-user customers, new cogeneration customers, and increased capacity from existing shippers.  In addition, MoGas has the right to request from FERC adjustments to its rates to mitigate the effect of higher operating costs or lost revenues, by filing such a request any time MoGas deems necessary and appropriate.

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 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) 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.
Second Quarter 2017 Earnings Conference Call
CorEnergy will host a conference call on Thursday, August 3, 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 webcasted 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 September 3, 2017 by dialing 877-481-4010 (for international, 1-919-882-2331). The Conference ID is 17944. 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 Investments plus provision from loan losses, net of tax, transaction costs, amortization of debt issuance costs, amortization of deferred lease costs, accretion of asset retirement obligations, income tax expense (benefit) unrelated to securities investments, 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 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

1100 Walnut Street, Suite 3350, Kansas City, MO 64106 Main:816-875-3705  | Fax:816-875-5875  | corenergy.reit

	
								
Consolidated Balance Sheets	
 	 	 	 	
 	June 30, 2017	 	December 31, 2016	
Assets	(Unaudited)	 	 	
Leased property, net of accumulated depreciation of $62,187,684 and $52,219,717	$	479,290,402		 	$	489,258,369		
Property and equipment, net of accumulated depreciation of $10,969,426 and $9,292,712	114,749,839		 	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	9,147,158		 	9,287,209		
Cash and cash equivalents	37,280,689		 	7,895,084		
Deferred rent receivable	18,464,918		 	14,876,782		
Accounts and other receivables	3,376,336		 	4,538,884		
Deferred costs, net of accumulated amortization of $2,814,294 and $2,261,151	2,581,420		 	3,132,050		
Prepaid expenses and other assets	601,428		 	354,230		
Deferred tax asset	2,019,051		 	1,758,289		
Goodwill	1,718,868		 	1,718,868		
Total Assets	$	670,730,109		 	$	650,732,571		
Liabilities and Equity	 	 	 	
Secured credit facilities, net (including $7,701,316 and $8,860,577 with related party)	$	41,035,695		 	$	89,387,985		
Unsecured convertible senior notes, net of discount and debt issuance costs of $2,361,512 and $2,755,105	111,638,489		 	111,244,895		
Asset retirement obligation	12,204,201		 	11,882,943		
Accounts payable and other accrued liabilities	2,191,053		 	2,416,283		
Management fees payable	1,745,325		 	1,735,024		
Unearned revenue	543,050		 	155,961		
Total Liabilities	$	169,357,813		 	$	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 June 30, 2017 and December 31, 2016, respectively	$	130,000,000		 	$	56,250,000		
Capital stock, non-convertible, $0.001 par value; 11,901,681 and 11,886,216 shares issued and outstanding at June 30, 2017 and December 31, 2016 (100,000,000 shares authorized)	11,902		 	11,886		
Additional paid-in capital	343,585,389		 	350,217,746		
Accumulated other comprehensive loss	(5,218	)	 	(11,196	)	
Total CorEnergy Equity	473,592,073		 	406,468,436		
Non-controlling interest	27,780,223		 	27,441,044		
Total Equity	501,372,296		 	433,909,480		
Total Liabilities and Equity	$	670,730,109		 	$	650,732,571		

	
																
Consolidated Statements of Income and Comprehensive Income (Unaudited)	
 	 	 	 	
 	For the Three Months Ended	 	For the Six Months Ended	
 	June 30, 2017	 	June 30, 2016	 	June 30, 2017	 	June 30, 2016	
Revenue	 	 	 	 	 	 	 	
Lease revenue	$	17,050,092		 	$	16,996,072		 	$	34,116,618		 	$	33,992,144		
Transportation and distribution revenue	4,775,780		 	5,064,680		 	9,786,370		 	10,164,131		
Financing revenue	—		 	—		 	—		 	162,344		
Total Revenue	21,825,872		 	22,060,752		 	43,902,988		 	44,318,619		
Expenses	 	 	 	 	 	 	 	
Transportation and distribution expenses	1,362,980		 	1,378,306		 	2,698,550		 	2,740,631		
General and administrative	2,558,339		 	2,773,240		 	5,619,579		 	6,063,092		
Depreciation, amortization and ARO accretion expense	6,005,995		 	5,737,025		 	12,011,903		 	11,033,843		
Provision for loan loss and disposition	—		 	369,278		 	—		 	5,014,466		
Total Expenses	9,927,314		 	10,257,849		 	20,330,032		 	24,852,032		
Operating Income	$	11,898,558		 	$	11,802,903		 	$	23,572,956		 	$	19,466,587		
Other Income (Expense)	 	 	 	 	 	 	 	
Net distributions and dividend income	$	221,440		 	$	214,169		 	$	264,902		 	$	589,742		
Net realized and unrealized gain (loss) on other equity securities	614,634		 	1,199,665		 	70,426		 	(429,087	)	
Interest expense	(3,202,837	)	 	(3,540,812	)	 	(6,657,234	)	 	(7,466,821	)	
Total Other Expense	(2,366,763	)	 	(2,126,978	)	 	(6,321,906	)	 	(7,306,166	)	
Income before income taxes	9,531,795		 	9,675,925		 	17,251,050		 	12,160,421		
Taxes	 	 	 	 	 	 	 	
Current tax expense (benefit)	57,651		 	203,652		 	23,891		 	(474,079	)	
Deferred tax expense (benefit)	38,084		 	206,786		 	(260,762	)	 	(370,609	)	
Income tax expense (benefit), net	95,735		 	410,438		 	(236,871	)	 	(844,688	)	
Net Income	9,436,060		 	9,265,487		 	17,487,921		 	13,005,109		
Less: Net Income attributable to non-controlling interest	435,888		 	310,960		 	818,271		 	659,461		
Net Income attributable to CorEnergy Stockholders	$	9,000,172		 	$	8,954,527		 	$	16,669,650		 	$	12,345,648		
Preferred dividend requirements	2,123,129		 	1,037,109		 	3,160,238		 	2,074,218		
Net Income attributable to Common Stockholders	$	6,877,043		 	$	7,917,418		 	$	13,509,412		 	$	10,271,430		
 	 	 	 	 	 	 	 	
Net Income	$	9,436,060		 	$	9,265,487		 	$	17,487,921		 	$	13,005,109		
Other comprehensive income (loss):	 	 	 	 	 	 	 	
Changes in fair value of qualifying hedges / AOCI attributable to CorEnergy stockholders	3,006		 	3,005		 	5,978		 	(208,071	)	
Changes in fair value of qualifying hedges / AOCI attributable to non-controlling interest	702		 	703		 	1,396		 	(48,647	)	
Net Change in Other Comprehensive Income (Loss)	$	3,708		 	$	3,708		 	$	7,374		 	$	(256,718	)	
Total Comprehensive Income	9,439,768		 	9,269,195		 	17,495,295		 	12,748,391		
Less: Comprehensive income attributable to non-controlling interest	436,590		 	311,663		 	819,667		 	610,814		
Comprehensive Income attributable to CorEnergy Stockholders	$	9,003,178		 	$	8,957,532		 	$	16,675,628		 	$	12,137,577		
Earnings Per Common Share:	 	 	 	 	 	 	 	
Basic	$	0.58		 	$	0.66		 	$	1.14		 	$	0.86		
Diluted	$	0.58		 	$	0.66		 	$	1.14		 	$	0.86		
Weighted Average Shares of Common Stock Outstanding:	 	 	 	 	 	 	 	
Basic	11,896,616		 	11,912,030		 	11,892,670		 	11,927,984		
Diluted	11,896,616		 	15,383,892		 	11,892,670		 	11,927,984		
Dividends declared per share	$	0.750		 	$	0.750		 	$	1.500		 	$	1.500		

	
								
Consolidated Statements of Cash Flows (Unaudited)	
 	 	 	 	
 	For the Six Months Ended	
 	June 30, 2017	 	June 30, 2016	
Operating Activities	 	 	 	
Net Income	$	17,487,921		 	$	13,005,109		
Adjustments to reconcile net income to net cash provided by operating activities:	 	 	 	
Deferred income tax, net	(260,762	)	 	(370,609	)	
Depreciation, amortization and ARO accretion	12,949,644		 	12,149,782		
Provision for loan loss	—		 	5,014,466		
Non-cash settlement of accounts payable	(171,609	)	 	—		
Gain on repurchase of convertible debt	—		 	(68,734	)	
Net distributions and dividend income, including recharacterization of income	148,649		 	(117,004	)	
Net realized and unrealized (gain) loss on other equity securities	(70,426	)	 	429,087		
Unrealized gain on derivative contract	(16,453	)	 	(132,094	)	
Common stock issued under directors compensation plan	30,000		 	30,000		
Changes in assets and liabilities:	 	 	 	
Increase in deferred rent receivable	(3,588,136	)	 	(4,777,761	)	
Decrease in accounts and other receivables	1,162,548		 	1,044,197		
Decrease in financing note accrued interest receivable	—		 	95,114		
Decrease (increase) in prepaid expenses and other assets	134,023		 	(143,996	)	
Increase (decrease) in management fee payable	10,301		 	(63,961	)	
Decrease in accounts payable and other accrued liabilities	(53,621	)	 	(133,100	)	
Increase in unearned revenue	29,695		 	54,094		
Net cash provided by operating activities	$	27,791,774		 	$	26,014,590		
Investing Activities	 	 	 	
Proceeds from assets and liabilities held for sale	—		 	644,934		
Purchases of property and equipment, net	(13,745	)	 	(372,230	)	
Proceeds from asset foreclosure and sale	—		 	223,451		
Increase in financing notes receivable	—		 	(202,000	)	
Return of capital on distributions received	61,828		 	2,134		
Net cash provided by investing activities	$	48,083		 	$	296,289		
Financing Activities	 	 	 	
Debt financing costs	(2,512	)	 	(193,000	)	
Net offering proceeds on Series A preferred stock	71,170,611		 	—		
Repurchases of common stock	—		 	(2,041,851	)	
Repurchases of convertible debt	—		 	(931,266	)	
Dividends paid on Series A preferred stock	(3,433,984	)	 	(2,074,218	)	
Dividends paid on common stock	(17,318,618	)	 	(17,570,352	)	
Distributions to non-controlling interest	(480,488	)	 	—		
Advances on revolving line of credit	—		 	44,000,000		
Payments on revolving line of credit	(44,000,000	)	 	—		
Principal payments on secured credit facilities	(4,389,261	)	 	(54,002,815	)	
Net cash provided (used) by financing activities	$	1,545,748		 	$	(32,813,502	)	
Net Change in Cash and Cash Equivalents	$	29,385,605		 	$	(6,502,623	)	
Cash and Cash Equivalents at beginning of period	7,895,084		 	14,618,740		
Cash and Cash Equivalents at end of period	$	37,280,689		 	$	8,116,117		

	
								
Supplemental Disclosure of Cash Flow Information	 	 	 	
Interest paid	$	5,777,328		 	$	6,758,715		
Income taxes paid (net of refunds)	132,202		 	3,437		
 	 	 	 	
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	$	516,565		 	$	331,823		

	
																
NAREIT FFO, FFO Adjusted for Securities Investment and AFFO Reconciliation	
 	For the Three Months Ended	 	For the Six Months Ended	
 	June 30, 2017	 	June 30, 2016	 	June 30, 2017	 	June 30, 2016	
Net Income attributable to CorEnergy Stockholders	$	9,000,172		 	$	8,954,527		 	$	16,669,650		 	$	12,345,648		
Less:	 	 	 	 	 	 	 	
Preferred Dividend Requirements	2,123,129		 	1,037,109		 	3,160,238		 	2,074,218		
Net Income attributable to Common Stockholders	$	6,877,043		 	$	7,917,418		 	$	13,509,412		 	$	10,271,430		
Add:	 	 	 	 	 	 	 	
Depreciation	5,822,383		 	5,539,667		 	11,644,679		 	10,629,420		
Less:	 	 	 	 	 	 	 	
Non-Controlling Interest attributable to NAREIT FFO reconciling items	411,455		 	411,455		 	822,910		 	822,910		
NAREIT funds from operations (NAREIT FFO)	$	12,287,971		 	$	13,045,630		 	$	24,331,181		 	$	20,077,940		
Add:	 	 	 	 	 	 	 	
Distributions received from investment securities	252,213		 	215,139		 	475,379		 	474,873		
Income tax expense from investment securities	310,622		 	533,765		 	114,862		 	58,128		
Less:	 	 	 	 	 	 	 	
Net distributions and dividend income	221,440		 	214,169		 	264,902		 	589,742		
Net realized and unrealized gain (loss) on other equity securities	614,634		 	1,199,665		 	70,426		 	(429,087	)	
Funds from operations adjusted for securities investments (FFO)	$	12,014,732		 	$	12,380,700		 	$	24,586,094		 	$	20,450,286		
Add:	 	 	 	 	 	 	 	
Provision for loan losses, net of tax	—		 	369,278		 	—		 	4,409,359		
Transaction costs	211,269		 	1,000		 	470,051		 	37,915		
Amortization of debt issuance costs	468,871		 	470,506		 	937,742		 	1,087,603		
Amortization of deferred lease costs	22,983		 	22,983		 	45,966		 	45,966		
Accretion of asset retirement obligation	160,629		 	174,375		 	321,258		 	358,457		
Unrealized (gain) loss associated with derivative instruments	10,619		 	33,820		 	(16,453	)	 	57,695		
Less:	 	 	 	 	 	 	 	
Non-cash settlement of accounts payable	171,609		 	—		 	171,609		 	—		
Income tax benefit	214,887		 	123,327		 	351,733		 	297,709		
Non-Controlling Interest attributable to AFFO reconciling items	3,358		 	9,064		 	6,709		 	45,868		
Adjusted funds from operations (AFFO)	$	12,499,249		 	$	13,320,271		 	$	25,814,607		 	$	26,103,704		
 	 	 	 	 	 	 	 	
Weighted Average Shares of Common Stock Outstanding:	 	 	 	 	 	 	 	
Basic	11,896,616		 	11,912,030		 	11,892,670		 	11,927,984		
Diluted	15,351,161		 	15,383,892		 	15,347,215		 	15,406,339		
NAREIT FFO attributable to Common Stockholders	 	 	 	 	 	 	 	
Basic	$	1.03		 	$	1.10		 	$	2.05		 	$	1.68		
Diluted (1)	$	0.94		 	$	0.99		 	$	1.87		 	$	1.59		
FFO attributable to Common Stockholders	 	 	 	 	 	 	 	
Basic	$	1.01		 	$	1.04		 	$	2.07		 	$	1.71		
Diluted (1)	$	0.93		 	$	0.95		 	$	1.89		 	$	1.61		
AFFO attributable to Common Stockholders	 	 	 	 	 	 	 	
Basic	$	1.05		 	$	1.12		 	$	2.17		 	$	2.19		
Diluted (2)	$	0.94		 	$	0.99		 	$	1.94		 	$	1.95		
(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.