06 Jan 2020
Story originally published on Daily Memphian.
Self-storage company Jernigan Capital has announced it is buying its external adviser JCAP Advisors to bring it in-house and will “right-size” its annual dividend, lowering it by 34%.
The Memphis-based company also announced its namesake leader, Dean Jernigan, has retired on Dec. 31 as a director of the company.
Jernigan, executive chairman and director who founded the company in October 2014, has a long history in the self-storage industry, founding Storage USA in Memphis in 1984 before selling it 2005 to Extra Space Storage for $2.3 billion.
Jernigan, who was CEO of Jernigan Capital until November 2018 when he handed over the reins to current CEO John Good and president and COO Jonathan Perry, will remain a consultant for the company on a non-exclusive basis, according to a release. He issued a letter to the board of directors announcing his retirement.
CEO Good will resume the role as chairman. He has more than 28 years of experience working with senior management teams and boards of directors of public companies in the real estate investment trust (REIT) and financial services industries.
The board of directors also determined that, based on its “accelerated transition to an equity REIT,” the new annual dividend rate will be 92 cents per share of common stock, down from the current $1.40 a share.
“We have consistently advised the market and our stockholders that at such time as the Company is focused more on the ownership and operation, rather than the financing, of self-storage properties, it would be appropriate for the Company to adopt a dividend policy that resembled that of an equity REIT rather than a mortgage REIT,” Good said in a release.
Story: Christin Yates Thumbnail: SeekingAlpha
