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Cautionary Note Regarding Forward-Looking Statements
Certain statements in the below referenced discussion may constitute “forward-looking” statements as defined in Section 27A of the Securities Act of 1933
(the “Securities Act”), Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”), and/or the Private Securities Litigation Reform Act of
1995 (the “PSLRA”), as may be amended from time to time. Statements contained in such discussion that are not historical facts, including statements
regarding future dividend rates and dates, are forward-looking statements within the meaning of the PSLRA that involve a number of risks and uncertainties.
Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “may,” “will,” “should” and their variations identify forwardlooking statements. Statements that refer to or are based on projections, uncertain events or assumptions also identify forward-looking statements. Many
factors could affect the Company’s actual results, and variances from the Company’s current expectations regarding such factors could cause actual results to
differ materially from those expressed in these forward-looking statements, including, among others, our ability to consummate any of future acquisitions;
risks of regulatory approvals, if any required; competitive responses to future acquisitions; uncertainty of our expected financial performance following
completion of any of future acquisitions; unexpected costs, charges or expenses resulting from any of future acquisitions; litigation relating to any of future
acquisitions; any changes in general economic and/or industry specific conditions. The Company undertakes no obligation to publicly update any forwardlooking statements, whether as a result of new information, future events or otherwise. These cautionary statements are being made pursuant to the Securities
Act, the Exchange Act and the PSLRA with the intention of obtaining the benefits of the “safe harbor” provisions of such laws. The Company cautions
investors that any forward-looking statements are not guarantees or indicative of future performance. A detailed discussion of these and other factors that
could affect the Company’s results is included in the Company’s SEC filings.
GTJ
Financing Summary
Flow of Funds from Financing Initiative
Loan Proceeds
Loan Reserve & Escrow Requirements
Returns of Deposits and Reserves
Closing Costs
Net Proceeds Before Payoffs
Mortgage Payoffs
Excess Proceeds
$
$
$
$
$
$
$
233,100,000
(2,203,000)
3,297,000
(6,214,000)
227,980,000
(199,867,000)
28,113,000
Debt Service on Loans Paid Off
Debt Service on Line of Credit Paid Off
Total Debt Service on Loans and Line of Credit Paid Off
Current Debt Service Interest Only ($233.1 mm proceeds at 4.05%)
Approximate Cash Flow Savings
$
$
$
$
$
8,570,000
1,500,000
10,070,000
9,441,000
629,000
GTJ
Additional Potential Acquisitions
Potential Acquisition Price (Average 2014 Cap Rate 6.70%)
Potential Closing Costs (3%)
Total Potential Required Funds
Potential Mortgage Proceeds (60% LTV)
Potential Required Equity (from Additional Refinance Proceeds)
Potential Net Operating Income
Potential Debt Service (on new debt of $35,563,000 @ 4.0%)
Potential Net Cash Flow (10.1% Return on Equity)
$
$
$
$
$
$
$
$
58,000,000
1,740,000
59,740,000
(35,563,000)
24,177,000
3,875,000
(1,423,000)
2,452,000
Potential GTJ Finance Ratios
Current Portfolio
Market Value
Debt
$ 623,600,000 $ 251,188,000
LTV
40.3%
DSCR
1.84
Current Portfolio - After Refinancing
Additional Potential Acquisitions
Portfolio After Refinancing & Potential Acquisitions
$ 623,600,000 $ 304,097,000
$ 58,000,000 $ 35,563,000
$ 681,600,000 $ 339,660,000
48.8%
61.3%
49.8%
1.92
2.72
2.00
DSCR = Net Operating Income Divided by Debt Service
Potential Net Operating Income
Potential Debt Service
$
$
28,861,000 = 2.00
14,419,000