MEMPHIS, Tenn.--(BUSINESS WIRE)--Jernigan Capital, Inc. (NYSE:JCAP) today announced that its board of directors has authorized a share repurchase program for up to $10 million of the outstanding shares of common stock of the Company, or approximately 11.6% of the market value of the Company’s outstanding common stock as of the close of trading on May 20, 2016. All repurchased shares will be immediately retired and will become authorized but unissued shares.
"Our board of directors believes that our current share price reflects a dramatic discount to the intrinsic value of our portfolio of investments in state-of-the-art self-storage developments in some of the top markets in the United States," said Dean Jernigan, Chairman and CEO of Jernigan Capital. "The dollar amount of this share repurchase program, if fully executed, is the equivalent of a single investment in a new development project. We believe the return on purchasing our own common stock at these prices significantly exceeds the strong return we would otherwise recognize on an equivalent amount of capital invested in one additional development project, making this a compelling step to creating shareholder value."
Jernigan Capital will repurchase shares at times and at prices considered appropriate by management, although the exact timing of the repurchases and the number of common shares to be purchased will depend on market conditions and other factors. These purchases may be commenced or suspended at any time or periodically without prior notice, and the exact number of shares to be repurchased by the Company is not known, nor can any minimum repurchase amount be guaranteed.
In addition to the share repurchase program, Jernigan Capital also announced that its board of directors declared a cash dividend of $0.35 per share of common stock for the quarter ending June 30, 2016. The dividend is payable on July 15, 2016 to stockholders of record on July 1, 2016.
About Jernigan Capital, Inc.
Jernigan Capital, Inc. is a New York Stock Exchange-listed real estate investment trust (NYSE: JCAP) that provides debt and equity capital to private developers, owners, and operators of self-storage facilities. Our mission is to be the preeminent capital partner for self-storage entrepreneurs nationwide by offering creative solutions through an experienced team demonstrating the highest levels of integrity, dedication, excellence and community, while maximizing shareholder value. The Jernigan Capital team has extensive experience in over 100 U.S. markets—from acquiring and managing self-storage properties to new self-storage development—providing JCAP with knowledge unmatched by any lender, broker or advisor to the sector. Jernigan Capital is the only source of construction and development capital focused solely on the self-storage sector.
This press release includes 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. The words “should,” “expects” and “intends” and similar terms and phrases are used in this press release to identify forward-looking statements. The ultimate occurrence of events and results referenced in these forward-looking statements is subject to known and unknown risks and uncertainties, many of which are beyond our control. These forward-looking statements are based upon the Company's present intentions and expectations, but the events and results referenced in these statements are not guaranteed to occur. Investors should not place undue reliance upon forward-looking statements. For a discussion of risks facing our business, see the information under the heading “Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”), which is accessible on the SEC’s website at www.sec.gov.