Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Consolidated Tomoka Land — Shareholder Meeting (April 2015)
33 slides from Cto Realty Growth's shareholder meeting presentation, Apr 22, 2015
Slide 1: Annual Meeting of Shareholders: Plenty of Runway Ahead
Annual Meeting of Shareholders April 22, 2015 (NYSE MKT: CTO) Plenty of Runway Ahead
Slide 2: Forward-looking statements
If we refer to “we,” “us,” “our,” or “the Company,” we mean Consolidated-Tomoka Land Co. and its consolidated subsidiaries. This presentation may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward-looking statements can be identified
Slide 3: Effecting Change & Unlocking Value (in last 3 years)
Effecting Change & Unlocking Value (in last 3 years) Doing More with Less: Corporate Actions −Reduced headcount 18% while increasing assets by 62% Monetizing our Land: Converting Land to Income −$12.4mm in land sales (128 acres) vs $6.7mm (40 acres) prior 4 years −Under contract to sell >1,700 a
Slide 4: Delivering Shareholder Returns
Delivering Shareholder Returns Aggregate performance from 12/30/11 to 3/13/15 (adjusted for dividends) 4
Slide 5: Positive Trends
Positive Trends Annual Results for 2011 – 2014 Total Revenues ($000’s) Basic Earnings Per Share 2011 2012 2013 2014 Operating Income ($000’s) Book Value Per Share 2011 2012 2013 2014 5
Slide 6: Increasing Free Cash Flow
Increasing Free Cash Flow ($’s in millions) 2014 2013 2012 Income Properties $13.0 $11.5 $7.8 Commercial Loan Investments 2.2 1.7 - Real Estate Operations 8.6 2.3 2.4 Golf Operations (0.4) (0.4) (0.9) Agriculture and Other Income 0.1 0.1 (0.1) Total Segment Income (1) $23.5 $15.2 $9.2 Add: Impact Fe
Slide 7: Income Producing Investments
Income Producing Investments as of December 31, 2014 1 (1) 1 1 1 2 9 2 3 22 1 Number of Income Property Investments Location of Loan Investments CTO Headquartered in Daytona Beach, FL (1) % of total rent revenues as of December 31, 2014 10 States – Larger MSAs 7
Slide 8: Top Tenants by Rent
Income Properties Top Tenants by Rent As of December 31, 2014 (1) (2) Approx. 44% of rent income from Investment Grade tenants (1) Guaranteed by Holiday CVS, L.L.C. a wholly-owned subsidiary of CVS Caremark (2) Approximately 3% of rent comprised of other retailers in Whole Foods Market Centre 8
Slide 9: 2014 Acquisitions Core Investments
Income Properties 2014 Acquisitions Whole Foods Market Centre (Sarasota, FL) Lowes (Katy, TX) $19.1mm Investment $14.7mm Investment 7.1 years weighted average lease term 12.8 years remaining lease term 3-mi Pop. 64,952; 3-mi Avg HHI $68,690 3-mi Pop. 98,864; 3-mi Avg HHI $96,622 59,000 sq ft of tota
Slide 10: 2014 Acquisitions Opportunistic Investments
Income Properties 2014 Acquisitions American Signature (Daytona Beach, FL) Winter Park Palms (Winter Park, FL) $5.3mm Investment $3.1mm Investment 5.6 years remaining on lease term 112,292 sq ft ($27.61 per sq ft) 3-mi Pop. 33,524; 3-mi Avg HHI $38,696 3-mi Pop. 89,517; 3-mi Avg HHI $65,407 52,665 s
Slide 11: Recycling non-core properties
Income Properties Recycling non-core properties Recent DISPOSITIONS: ACQUISITION Opportunity: Sold 2 vacant CVS stores in Florida in April 2015 $8.6mm investment located in adjacent to Arrowhead Mall in Phoenix, AZ $6.4mm in sales proceeds Off-market transaction; closing expected May 8.7 y
Slide 12: Improving Income Portfolio Demos
Income Properties Improving Income Portfolio Demos Portfolio average as of December 31st 12 (1) Represents 2015 portfolio demographics adjusted for recent dispositions and acquisitions under contract
Slide 13: Self-Developed Properties: weighted average occupancy 91%
Income Properties Self-Developed Properties: weighted average occupancy 91% as of December 31, 2014 (unless otherwise noted) Concierge Office Mason Commerce Center Williamson Business Park 2 Story Office 2 Properties – Flex Office 2 Properties – Flex Office Approx. 22,000 square feet Appro
Slide 14: Commercial Loan Investments
Loan Investments Commercial Loan Investments As of December 31, 2014 (unless otherwise noted) Date of Investment Loan Type Loan Type Asset Location Loan Balance Rate Maturity Date January 2014 Mezzanine Hotel Atlanta, GA $5,000,000 12.00% February 2019 May 2014 B-Note Retail Shopping Center Sarasota
Slide 15: Historical Land Revenue
Land Holdings Historical Land Revenue Annual Land Revenue for 2005 – 2014 (Land Revenue in $000’s – except Average Price/Acre data) Average Price/Acre Residential $ 20,665 $ 100,000 $ 18,480 $ - $ - $ - $ - $ - $ - $ - Commercial $ 140,116 $ 96,340 $ 166,392 $ 174,669 $ 158,307 $ - $ - $ 37,133 $ 25
Slide 16: Distribution Facility
Land Holdings Distribution Facility LAND TRANSACTION SALE CLOSED – AUGUST 15, 2014 Gross Sales Price: $7.8mm 76 Acres along I-95 and Dunn Ave 630,000+ SF distribution facility Estimated total capital investment by buyer approximately $80mm Creation of an estimated 400 - 500 new jobs 1st jo
Slide 17: Harvesting Value: Completed Land Transactions
Land Holdings Harvesting Value: Completed Land Transactions VICTOR INDIGO Sold 20.96 acres LAKES LLC $30k/ac | October 2014 DISTRIBUTION Sold 75.60 acres CENTER $103k/ac | August 2014 Sold 3.06 acres $128k/ac | February 2014 Sold 2.02 acres $317k/ac | December 2013 Sold 3.41 acres $382k/ac | Decembe
Slide 18: Potential Land Sale – Minto Communities
Land Holdings Potential Land Sale – Minto Communities Approximately 1,600 Acre Parcel Age-Restricted Planned Residential Community Across from LPGA International Overview of Project > 3,000 single-family homes Golf-cart friendly lifestyle Resort-style town center w/ clubhouse, restaura
Slide 19: Harvesting Value: Potential Land Transactions
Land Holdings Harvesting Value: Potential Land Transactions (1) Total Acres WEST OF I-95 East of I-95 Approx. 1,400 acres Potential Transaction 1 Buyer: Minto Communities Total Acres West of I-95 Approx. 1,600 acres Approx. 8,200 acres Potential Transaction 2 Approx. 17 +/- acres EAST OF I-95 Potent
Slide 20: Tomoka Town Center – Conceptual Plan
Land Holdings Tomoka Town Center – Conceptual Plan 79 +/- Acres 24 +/- Acres 18 +/- Acres 39 +/- Acres Approximately 200 Acres 20
Slide 21: Where does the Stock Market Value our Land?
Land Holdings Where does the Stock Market Value our Land? Trading Value of Land Shares 5,905,871 Share Price (as of April 10, 2015) $57.69 Market Capitalization (as of April 10, 2015) $340,709,698 Long-Term Debt (Gross) (1) $135,400,000 Deferred Income Taxes (Net) $34,172,924 Other Liabilities $8,79
Slide 22: Improved Golf Operations
Golf Improved Golf Operations OPERATING RESULTS ($000’s) 2011 2012 2013 2014 (Total Members at year end) MEMBERSHIP GROWTH 22
Slide 23: Subsurface Interests
Subsurface Interests Subsurface Interests CTO Earned Approx. $7.9 million in Past 3 years from Subsurface Interests Approximately 95% of total subsurface acres Remaining 5% of total subsurface acres CTO owns full or partial interest in Counties with active or historic oil/gas production (1) ap
Slide 24: CTO Advantage
CTO Advantage Source: CTO estimates and publicly available documents All information as of April 2015; CTO information as of March 31, 2015 Avg Lease Debt+Pref/ Market Implied Cap Rate Dividend Yield 2015E FFO Multiple Top Three Tenants Credit Rating Term (Yrs) Cap (1) CVS N/R N/A N/A N/A Lowe's A-
Slide 25: 2015 Guidance
2015 Guidance Earnings per share (on a fully diluted basis) $2.80 - $3.10 per share Acquisition of Income-Producing Assets $70mm - $90mm Target Investment Yields (Initial Yield – Unlevered) 6% - 8% Disposition of Non-Core Income Properties $7mm - $15mm Target Disposition Yields 7.5% - 10.0% Land Tra
Slide 26: Shareholder Friendly
Shareholder Friendly Share buy back: 40,470 shares since 2012 ($1.4 million) Board of Directors reduced to 7 in 2014 from 11 in 2011 Increased dividend since 2011 – from $0.04 to $0.08 per share (annualized) Annual election of Directors (eliminated staggered elections) Additional disclosur
Slide 27: Liquidity and Leverage
Liquidity and Leverage as of March 31, 2015 Liquidity Position Debt to Market Cap (2) (excluding restricted cash) (excluding restricted cash) $ in 000’s (1) (1) (1) Total Commitment shown, total borrowing capacity based on borrowing base assets is approx. $58 million (2) Convertible Debt issuance in
Slide 28: Convertible Debt Offering (Closed March 11, 2015)
Convertible Debt Offering (Closed March 11, 2015) Offering Size $75.0 million Coupon 4.50% Conversion Premium 27.5% Term 5 years Stock Price (per share) $54.04 Conversion Price (per share) $68.90 Net Proceeds $71.9 million Provides capital for income property investments for reverse 1031 $47.5 m
Slide 29: Why Consider Converting to a REIT
Why Consider Converting to a REIT Tax Efficient Structure − Growth in Income Property portfolio increases taxable income Benefits from Expanded Investor Base − Large dedicated REIT investors − REIT index investors and ETFs, etc. − Growth and income investors Company’s Deferred Tax Liability Re
Slide 30: Well-Positioned Land – 10,500 Acres
Well-Positioned Land – 10,500 Acres [9 miles from the ocean] 30
Slide 31: Fastest Growing MSA's (by % change)
Fastest Growing MSA’s (by % change) Florida Well Represented (1) 2014 population estimates – U.S. Department of Commerce 31
Slide 32: Daytona Growth + Investment
Daytona Growth + Investment Timing (1) Investment Size (1) Description January 2015 $13 million New Art Museum January 2015 $39 million Campus Expansion Retail Auto Mall Q4 2015 $25 million Expansion Refrigerated DISTRIBUTION Q3 2015 $85 million CENTER Distribution Center DAYTONA RISING January 2016
Slide 33: Q&A
Q&A (NYSE MKT: CTO) Plenty of Runway Ahead
Consolidated Tomoka Land — Shareholder Meeting (April 2015) on 6ix