Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Consolidated Tomoka Land — REIT World 2017
39 slides from Cto Realty Growth's conference presentation, Nov 13, 2017
Slide 1: On the Right Path
REIT WORLD 2017 INVESTOR PRESENTATION ON THE RIGHT PATH October 19, 2017 NYSE American: CTO Wells Fargo – Raleigh, NC Lowe’s – Katy, TX 3600 Peterson – Santa Clara, CA Whole Foods Center – Sarasota, FL LA Fitness – Brandon, FL Harris Teeter – Charlotte, NC
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS CONSOLIDATED TOMOKA If we refer to “we,” “us,” “our,” or “the Company,” we mean Consolidated-Tomoka Land Co. and its consolidated subsidiaries. Certain statements contained in this presentation (other than statements of historical fact) are forward-looking statements. Word
Slide 3: Why CTO
WHY CTO CONSOLIDATED TOMOKA As of November 9, 2017 (unless otherwise noted) Discount to NAV Organic Capital Source Portfolio Quality vs Peers REIT WORLD 2017 INVESTOR PRESENTATION 3 Trading at Meaningful Discount to NAV Land Sales Provide Organic Source of Capital Faster Pace of Income Acquisition G
Slide 4: Recent Highlights: Land Contracts, Acquisition, Loan Sales
Monetize Land: Contracts Added to Land Pipeline (A) Aggregate Potential Proceeds: $6.6mm (4 contracts) Acres under Contract: 52.2 Average Price per Acre: $127,000 Convert to Income Acquisition of Single-Tenant Office Property (Hillsboro, OR) Purchase Price: $39.8mm [$188/sq. foot] Tenant (Credit Rat
Slide 5: CTO Snapshot
CTO SNAPSHOT CONSOLIDATED TOMOKA A Lot More Income than Land (1) As of September 30, 2017 (2) Percentages based on values derived on NAV worksheet on Slide #27 REIT WORLD 2017 INVESTOR PRESENTATION 5 37 Properties >2.1 million Sq. Ft. Retail and Office NOI $25.2 million (C) Subsurface Interests 46
Slide 6: Track Record
’12 – ’16 CAGR 43.9% Total Revenues ($000’s) TRACK RECORD 6 CONSOLIDATED TOMOKA Annual Results for 2012 – 2016 and YTD 2017 (as of September 30, 2017) Operating Income Book Value Per Share Earnings Per Share (1) ($000’s) ’12 – ’16 CAGR 156.4% ’12 – ’16 CAGR 131.3% ’12 – ’16 CAGR 7.3% Consistent Grow
Slide 7: Cash Flow Growth
CASH FLOW GROWTH 7 CONSOLIDATED TOMOKA For 2015, 2016 and YTD 2017 (as of September 30, 2017) (1) Increasing Free Cash Flow REIT WORLD 2017 INVESTOR PRESENTATION 2015 2016 YTD 2017 Income Property NOI $14,724 $17,172 $15,509 Interest Income from Loan Investments 2,691 2,588 1,727 Oil Lease Payments
Slide 8: Monetizing Land
MONETIZING LAND CONSOLIDATED TOMOKA Monetizing Land With Tax Deferred Strategy (Land Sales in $000’s) 2012 – YTD 2017 Total Sales $88.5mm Acres Sold 2,620 Current Management Team 2005 – 2011 Total Sales $86.7mm Acres Sold 1,077 7 years ≈ 6 years Current CEO Hired August 2011 Dramatic Acceler
Slide 9: Land Pipeline
PIPELINE (A) 14 DIFFERENT BUYERS 73% of Remaining Land As of November 9, 2017 SF –Single Family; AR –Age Restricted, MF – Multi-Family Commercial/Retail Total Acreage East of I-95 1,100 Acres 9 Total Acreage West of I-95 7,000 Acres 1 12 2 3 4 6 7 8 9 11 10 Contract/Parcel Acres Contract Amount
Slide 10: Organic Source of Capital
ORGANIC SOURCE OF CAPITAL 10 Self-Funding Capital Source to Grow vs Serial Issuer of Equity REIT WORLD 2017 INVESTOR PRESENTATION CONSOLIDATED TOMOKA $90.8mm Potential Proceeds @ ≈$41.0k per Acre (1)(A) $152.7mm (A) Potential Proceeds NOI MONETIZING 8,100 ACRES OF LAND ≈ 5,890 Acres (A) Under Contra
Slide 11: Income Property Portfolio
INCOME PROPERTY PORTFOLIO CONSOLIDATED TOMOKA ($000’s) 2012 – YTD 2017 Total Acquisitions $360.2mm (1) Current Management Team 2005 – 2011 Total Acquisitions $59.6mm 7 years ≈ 6 years Current CEO Hired August 2011 Annual Acquisitions for 2005 – 2016 & YTD 2017 as of 11/9/17 Converting Land into
Slide 12: Portfolio Highlights
PORTFOLIO HIGHLIGHTS As of November 9, 2017 Annual NOI (C) ≈$25.2mm CONSOLIDATED TOMOKA Portfolio Mix (1) Transition to Single-Tenant Focus Over Time Square Feet >2.1mm REIT WORLD 2017 INVESTOR PRESENTATION 12 (1) Percentages based on NOI of income property portfolio 51% 49% Office Retail 67% 33% Si
Slide 13: Portfolio Highlights
PORTFOLIO HIGHLIGHTS 13 CONSOLIDATED TOMOKA As of November 9, 2017 Total Properties Annualized NOI (1) (C) Total Square Feet (2) Weighted Average Lease Term Investment Grade Tenants (G) Different Industries in Tenant Mix States Single Tenants >10% of NOI (C) 37 $25.2 2.1 7.6 48% 16 12 1 Stronger Mar
Slide 14: CTO's Portfolio vs Peers
CTO’S PORTFOLIO vs PEERS Three Mile Population(1) Implied Cap Rate(1) 3-Mile Median Household Income(1) 14 CONSOLIDATED TOMOKA 3-Mile Avg. Household Income(1) Stronger Demographics Higher Density Source of Peer Info: FBR & Co. (1) CTO info as of November 9, 2017 REIT WORLD 2017 INVESTOR PRESENTATION
Slide 15: CTO's Tenants vs Peers
CTO’s TENANTS vs PEERS AA- 23.8% BB+ 6.0% A+ 5.0% A- 3.6% B+ 3.4% BBB 6.7% BBB 5.3% BBB 4.0% B+ 4.1% BB+ 3.6% BBB 8.8% AA 3.9% B+ 3.4% A- 2.9% BBB+ 2.5% 15 CONSOLIDATED TOMOKA (1) CTO info as of November 9, 2017 Source of Peer Info and Stock Price versus NAV : FBR & Co. as of November 2017 and Inves
Slide 16: Property Highlights
16 CONSOLIDATED TOMOKA REIT WORLD 2017 INVESTOR PRESENTATION PROPERTY HIGHLIGHTS LOCATION: Raleigh, NC SQ. FEET: 450,393 TENANT: Wells Fargo CREDIT: AA- REMAINING TERM: 6.9 % of CTO NOI: 11.0% PURCHASE PRICE: $42.3 million LOCATION: Hillsboro, OR SQ. FEET: 211,863 TENANT: Wells Fargo CREDIT: AA- REM
Slide 17: Property Highlights
17 CONSOLIDATED TOMOKA REIT WORLD 2017 INVESTOR PRESENTATION PROPERTY HIGHLIGHTS LOCATION: Jacksonville, FL SQ. FEET: 136,856 TENANT: Multiple CREDIT: NR REMAINING TERM (1): 4.0 % of CTO NOI: 8.4% PURCHASE PRICE: $25.1 million Diversity & Balance Credit & Value LOCATION: Sarasota, FL SQ. FEET: 59,34
Slide 18: Property Highlights
18 CONSOLIDATED TOMOKA REIT WORLD 2017 INVESTOR PRESENTATION PROPERTY HIGHLIGHTS LOCATION: Fort Worth, TX SQ. FEET: 136,185 TENANT: Albertsons & others CREDIT: NR REMAINING TERM (1) : 4.5 % of CTO NOI: 3.4% PURCHASE PRICE: $15.0 million Diversity & Balance Credit & Value LOCATION: Brandon, FL SQ. FE
Slide 19: Opportunistic Investments: Beach Parcel
OPPORTUNISTIC INVESTMENTS 19 CONSOLIDATED TOMOKA Received entitlement for >1 million sq. ft. 6.04 acres Daytona Beach The Beach Parcel 2 Single Tenant Properties (restaurants) Estimated investment yield (for 2 restaurant properties): 7% - 11% unlevered (I) Scheduled to Open Q1 2018 Finding Value Cre
Slide 20: Value Perspective
VALUE PERSPECTIVE 20 CONSOLIDATED TOMOKA REIT WORLD 2017 INVESTOR PRESENTATION $17,750,000 The ‘Newman’ Daytona Rolex wristwatch (which sold at auction on 10/27/2017) $18,000,000 This Rolex ‘Daytona’Watch for This 6.04 Acres + 2 Restaurants on Daytona Beach CTO’s ‘Beach Parcel’ (vacant land acquired
Slide 21: Opportunistic Investments: The Grove at Winter Park
OPPORTUNISTIC INVESTMENTS 21 CONSOLIDATED TOMOKA Finding Value Creating Organic Returns Organic Income Growth for 2018 REIT WORLD 2017 INVESTOR PRESENTATION ≈112,000 sq. ft. situated on 14.35 acres Anchor Opened February 2017 Outparcel Total est. investment: $12.5 million Currently 60% Leased (1) Ca
Slide 22: Development Potential: CVS, Dallas
DEVELOPMENT POTENTIAL 22 CONSOLIDATED TOMOKA Development Potential Potential for Increased Returns REIT WORLD 2017 INVESTOR PRESENTATION CVS, Dallas TX ≈10,340 sq. ft. situated on 0.91 acres Purchase Price: $14.9mm Remaining Lease Term: 24.2 yrs. (1) Zoning provides for FAR of 10:1 (10 square feet f
Slide 23: Potential Expansion Opportunity: Raleigh
POTENTIAL EXPANSION OPPORTUNITY 23 CONSOLIDATED TOMOKA Development Potential Potential for Increased Returns REIT WORLD 2017 INVESTOR PRESENTATION Office Property, Raleigh NC ≈450,393 sq. ft. situated on 40 acres Development Opportunity Addition of 2 buildings totaling ≈ 200,000 sq. ft. Addition of
Slide 24: Investment Optionality: 7-Eleven, Dallas
INVESTMENT OPTIONALITY 24 CONSOLIDATED TOMOKA Expanding Market Value Potential for Increased Returns REIT WORLD 2017 INVESTOR PRESENTATION 7-Eleven, Dallas TX ≈4,685 sq. ft. situated on 0.04 acres Purchase Price: $2.5mm Remaining Lease Term: 6.9 yrs. (1) Infill urban location Major revitalization of
Slide 25: Investment Optionality: Bank of America Monterey
INVESTMENT OPTIONALITY 25 CONSOLIDATED TOMOKA Redevelopment Potential Increased Yield Opportunity REIT WORLD 2017 INVESTOR PRESENTATION Bank of America Monterey, CA Redevelopment Opportunity Selected as ‘Catalyst Site” by City of Monterey, allowing for 4 stories of vertical development Property woul
Slide 26: Income Properties in Top Markets
Income Properties in Top 20 Markets Investment – Indicates ranking of acquisition capital into respective market Development – Indicates ranking of development capital into respective market Source: 2018 ‘Emerging Trends in Real Estate’ publication by Urban Land Institute and PWC TARGET MARKETS Seat
Slide 27: NAV Worksheet
NAV WORKSHEET (A)(F)(I) 27 CONSOLIDATED TOMOKA As of November 9, 2017 Excludes intangible lease liabilities Indicative of Meaningful Discount in our Stock Price REIT WORLD 2017 INVESTOR PRESENTATION As of September 30, 2017 (unless otherwise noted) Highlighted Components of NAV Basis for Value or Es
Slide 28: Liquidity & Leverage
LIQUIDITY & LEVERAGE 28 CONSOLIDATED TOMOKA ≈69% of Debt at fixed rate ≈69% Unsecured Weighted Average Rate <4.00% As of November 9, 2017 Debt Schedule ($ in millions) Liquidity Position ($ in 000’s) Total Commitment of Credit Facility = $100 million Amount Outstanding at face value for Convertible
Slide 29: Returning Capital to Shareholders
Returning Capital to Shareholders (B)(D) 29 CONSOLIDATED TOMOKA Cumulative Shares Purchased Cumulative From 2012 Through November 9, 2017 Buybacks per Year $ Amount # of Shares 2012 $453,654 14,634 2013 $- - 2014 $927,913 25,836 2015 $6,484,844 119,403 2016 $7,431,896 151,453 YTD 2017 $7,209,454 135
Slide 30: REIT Evaluation
REIT EVALUATION (J) 30 CONSOLIDATED TOMOKA Alternative for Maximizing Value Shareholder Approval Required Prepared by national (‘Big Four’) third-party tax consultant No Decision has been made by CTO to convert to REIT Structure Estimated E&P ≈$30mm – $45mm(1) REIT WORLD 2017 INVESTOR PRESENTATION E
Slide 31: Income Property Portfolio: Single-Tenant
APPENDIX 31 CONSOLIDATED TOMOKA Income Property Portfolio ● Single-Tenant REIT WORLD 2017 INVESTOR PRESENTATION Tenant/Building S&P Credit Rating Location Property Type Rentable Square Feet Remaining Lease Term % of NOI Wells Fargo AA- Portland, OR Office 211,863 8.1 12.8% Wells Fargo AA- Raleigh, N
Slide 32: Income Property Portfolio: Multi-Tenant
APPENDIX 32 CONSOLIDATED TOMOKA Income Property Portfolio ● Multi-Tenant REIT WORLD 2017 INVESTOR PRESENTATION Tenant/Building Class Location Property Type Rentable Square Feet Remaining Lease Term % of NOI 3600 Peterson NR Santa Clara, CA Office 75,841 4.4 9.2% 245 Riverside Ave N/A Jacksonville, F
Slide 33: Intersection of Economic Development
APPENDIX 34 CONSOLIDATED TOMOKA Intersection of Economic Development REIT WORLD 2017 INVESTOR PRESENTATION Intersection of I-95 and LPGA Boulevard Under Construction Under Construction Under Construction Under Construction
Slide 34: Minto - Latitude Margaritaville
APPENDIX 35 CONSOLIDATED TOMOKA Minto - Latitude Margaritaville REIT WORLD 2017 INVESTOR PRESENTATION Active Adult Community – 1st Phase: 3,400 homes Sales Center Development in Progress on Land Sold by CTO
Slide 35: BBraun Distribution Center
APPENDIX 36 CONSOLIDATED TOMOKA BBraun Distribution Center REIT WORLD 2017 INVESTOR PRESENTATION ≈400,000 Square Foot Distribution Center Development in Progress on Land Sold by CTO
Slide 36: ICI Homes - Mosaic
APPENDIX 37 CONSOLIDATED TOMOKA ICI Homes - Mosaic REIT WORLD 2017 INVESTOR PRESENTATION Active Adult Community – 1,000+ homes Development in Progress on Land Sold by CTO
Slide 37: North American - Tomoka Town Center
APPENDIX 38 CONSOLIDATED TOMOKA North American – Tomoka Town Center REIT WORLD 2017 INVESTOR PRESENTATION ≈500,000 Square Foot Retail Power Center Development in Progress on Land Sold by CTO
Slide 38: End Notes
END NOTES 39 CONSOLIDATED TOMOKA End note references utilized in this presentation There can be no assurances regarding the value ultimately received for the Company’s assets or the likelihood of monetizing our remaining land holdings or the timing, or in the case of the transactions under contract
Slide 39: Contact Us
Wells Fargo – Raleigh, NC Lowe’s – Katy, TX 3600 Peterson – Santa Clara, CA Whole Foods Center – Sarasota, FL LA Fitness – Brandon, FL Harris Teeter – Charlotte, NC REIT WORLD 2017 INVESTOR PRESENTATION ON THE RIGHT PATH NYSE American: CTO Investor Relations: Mark E. Patten P: 386.944.5643 mpatten@c