CorEnergy defines AFFO as FFO plus transaction costs, amortization of debt issuance costs, deferred leasing costs, and above market rent, less maintenance capital expenditures (if any), amortization of debt premium and adjustments to lease revenue resulting from the EIP sale. Management uses AFFO as a measure of long-term sustainable cash flow.The pro forma table below reflects the completion as of December 1, 2011 of the LGS acquisition actually completed December 20, 2012. The pro forma FFO and AFFO calculations include the purchase of the LGS, execution of the Lease Agreement, the sale of 14.95 million shares of common stock, for a total of approximately 24 million shares outstanding, the execution of the $70 million secured term credit facility, and the $30 million co-investment by Prudential. Additional detail on this table is provided in management’s discussion and analysis of financial results in the Company’s Form 10-K for the year ended Nov. 30, 2012.
|Pro forma FFO and AFFO for the year ended Nov. 30, 2012|
|Net Income (attributable to CorEnergy Stockholders)||$||6,086,255||$||0.25|
|Funds From Operations (FFO)||$||14,240,554||$||0.59|
|Adjusted Funds From Operations (AFFO)||$||13,111,199||$||0.54|