Jernigan Capital Receives a Buy from FBR Capital

By Austin Angelo

In a report released today, David Corak from FBR Capital reiterated a Buy rating on Jernigan Capital (NYSE: JCAP), with a price target of $25. The company’s shares opened today at $22.35.

Corak observed:

“During all of the supply-driven drama occurring in the world of self-storage over the past 12 months, Jernigan Capital has been the best-performing storage REIT at +74% total return versus the equity REITs at +6%. Investors new to the JCAP story often ask how that is possible. The answer is simple: JCAP benefits from the new supply that the equity REITs are struggling to digest. We view JCAP as a way to capitalize on the storage development cycle, with the added opportunity to get into what we believe to be the next great self-storage equity REIT that is Dean Jernigan’s third major self-storage venture. As such, we view the current approximately $22 stock price as a very attractive entry point, compared to our $27 per share intrinsic value estimate based on 2017 commitments and $31.25 per share intrinsic value estimate based on 2018 capital commitments.”

According to TipRanks.com, Corak is a 2-star analyst with an average return of 0.5% and a 40.0% success rate. Corak covers the Financial sector, focusing on stocks such as National Storage Affiliates Trust, Preferred Apartment Communities, and Consolidated-Tomoka Land Co.

Jernigan Capital has an analyst consensus of Moderate Buy, with a price target consensus of $24.

Based on Jernigan Capital’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $2.3 million and quarterly net profit of $1.77 million. In comparison, last year the company earned revenue of $1.14 million and had a net profit of $1.09 million.

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Jernigan Capital, Inc. is a real estate investment trust, which engages in the provision of debt and equity capital to private developers, owners, and operators of self-storage facilities. It focuses on Development Property Investments and Operating Property Loans. Development Property Investments intends to finance ground-up construction of self-storage facilities or major self-storage conversion or redevelopment. The Operating Property Loans includes loans intended to finance the acquisition of, refinance existing indebtedness on, or recapitalize presently operating self-storage facilities. The company was founded by Dean Jernigan in October 1, 2014 and is headquartered in Memphis, TN.