John Good, CEO of Jernigan Capital, Inc. (NYSE: JCAP), joined Nareit in New York for a video interview at REITweek: 2019 Investor Conference.
Jernigan Capital provides debt and equity capital to private developers, owners, and operators of self-storage facilities.
Good discussed some of the unique challenges Jernigan Capital faces as an mREIT. He noted that the company looks at “overall performance to create long-term value because we have both a piece of the equity and the debt.”
Jernigan Capital’s IPO in 2015 took place right before a broad market downdraft impacted the entire mREIT sector. Good said the self-storage sector has had a “nice run” since 2015. He also said rising interest rates don’t pose a potential threat to the company. “Because we have a significant equity investment in every project and we have rights of first refusal to acquire those projects down the road, we tend to be less impacted by an upward movement in interest rates,” he said.