CorEnergy Releases Third Quarter 2013 Financial Results

CorEnergy Infrastructure Trust, Inc. (NYSE: CORR) (“the Company”) today announced financial results for the third quarter ended September 30, 2013.

Third Quarter Highlights and Subsequent Events
  • Declared third quarter dividend of $0.125 per share, paid on October 4, 2013
  • Reiterated expectation for annualized dividend payments of no less than $0.50 per share
  • Successful IPO from legacy private company, Lightfoot’s Arc Logistics Partners LP (NYSE: ARCX)
  • Maintained stable revenue stream from the Pinedale LGS for third consecutive quarter
  • Continued to meet asset requirements for Real Estate Investment Trust (REIT) status

Quarterly Performance Review

CorEnergy reported total revenues of $7.6 million in the quarter ended September 30, 2013. A third quarter dividend of $0.125 was declared on September 18, 2013 and paid on October 4, 2013. Total assets were $284.4 million and total stockholders’ equity was $204.2 million as of September 30, 2013, compared to $288.7 million and $207.5 million, respectively, at June 30, 2013. The modest decrease in total assets is primarily due to the second quarter dividend payment made in July. The decrease in stockholders’ equity is primarily due to the timing of the third quarter dividend payment. Net income attributable to common stockholders was $439 thousand, or $0.02 per common share.

“CorEnergy delivered another quarter of consistent performance across our business – stable revenues, sustained dividend distributions and strong operating fundamentals,” said David Schulte, Chief Executive Officer of CorEnergy. “As our strategy takes hold, we continue to make progress with asset operators and other potential partners. With a large and growing opportunity set, a disciplined investment philosophy and a cohesive management team, we remain focused on our strategy of building a diverse portfolio of energy infrastructure assets.”

Because a majority of the company’s assets are now REIT-qualifying, management believes that non-GAAP performance measures utilized by REITs, including Funds from Operations (“FFO”) and Adjusted Funds from Operations (“AFFO”), also provide useful insights into CorEnergy’s operational performance.
Third Quarter Ended September 30, 2013 Financial Summary
      For the Three Month Period Ended September 30, 2013
      Total     Per Share
Net Income (attributable to CorEnergy Stockholders)     $ 439,452     $0.020
Funds From Operations (FFO)     $3,062,274     $0.130
Adjusted Funds From Operations (AFFO)     $3,336,584     $0.140
Dividends Paid to Stockholders (on October 4, 2013)     $3,018,990     $0.125

FFO and AFFO are non-GAAP measures presented in accordance with the guidelines for calculation and reporting issued by the National Association of Real Estate Investment Trusts. FFO represents net income (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable operating property, real estate-related depreciation and amortization (excluding amortization of deferred financing costs or loan origination costs) and after adjustments for unconsolidated partnerships and joint ventures. The Company considers FFO an important supplemental measure of operating performance that is frequently used by securities analysts, investors and other interested parties. CorEnergy defines AFFO as FFO plus transaction costs, amortization of debt issuance costs, deferred leasing costs, above market rent, and certain costs of a nonrecurring nature, 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 operational performance.

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