Cto Realty Growth, Inc. · NYSE:CTO

Cto Realty Growth — Consolidated Tomoka Land — Investor Presentation (July 2015)

44 slides from Cto Realty Growth's investor presentation, Jul 31, 2015

  1. Slide 1: Plenty of Runway Ahead: 2nd Quarter 2015 Investor Presentation

    Plenty of Runway Ahead (NYSE MKT: CTO) 2nd Quarter 2015 Investor Presentation Published: July 31, 2015

  2. 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

  3. Slide 3: A Snapshot

    A Snapshot ($ in millions except share data) As of June 30, 2015 (unless otherwise noted) CTO: 2015 Share Performance (1) 3.4% RMZ Index: 2015 Index Performance (1) -6.2% CTO: Stock Price (as of July 24, 2015) $57.42 Equity Market Capitalization (as of July 24, 2015) $344.2 Total Debt $129.6 Other L

  4. Slide 4: A Snapshot

    A Snapshot As of June 30, 2015 (unless otherwise noted) Land & 10,500+ acres (All in City of Daytona Beach, FL) Subsurface 490,000± acres Subsurface Rights (2 operating wells with royalty income) 1.3 million Square Feet of Owned Real Estate (1) 43 Single-Tenant and Multi-Tenant Income Properties: In

  5. Slide 5: Effecting Change & Unlocking Value (since YE 2011)

    Effecting Change & Unlocking Value (since YE 2011) As of June 30, 2015 (unless otherwise noted)  Doing More with Less: Corporate Actions −Reduced headcount 16% while increasing assets by 80%  Monetizing our Land: Converting Land to Income −$13.2mm in land sales (131+ acres) vs $6.7mm (40 acres) 4

  6. Slide 6: Strategy Focused on Shareholder Returns

    Strategy Focused on Shareholder Returns As of June 30, 2015 (unless otherwise noted)  Growing our Operating free cash flow −Free cash flow has increased approximately 83% from 2013 to 2014  Repurchasing Our Shares at Attractive Discount to our NAV estimate −Since 2012 repurchased over 56,000 share

  7. Slide 7: Delivering Shareholder Returns – YTD Q2 2015

    Delivering Shareholder Returns – YTD Q2 2015 Adjusted for dividends Outperforming Peers & Indexes 7

  8. Slide 8: Stock Performance (YE 2011 through 6/30/15)

    Stock Performance (YE 2011 through 6/30/15) CTO Total Return since 2012: 114.02% 8

  9. Slide 9: Positive Trends

    Positive Trends Annual Results for 2011 – 2014 and YTD Q2 2015 Total Revenues ($000’s) Basic Earnings Per Share 2011 2012 2013 2014 YTD Q2 2015 Operating Income ($000’s) Book Value Per Share 2011 2012 2013 2014 YTD Q2 2015 9

  10. Slide 10: Increasing Free Cash Flow

    Increasing Free Cash Flow ($’s in millions) YTD Q2 2015 FY 2014 FY 2013 Income Properties $7.1 $13.0 $11.5 Commercial Loan Investments 1.3 2.2 1.7 Real Estate Operations 1.3 8.6 2.3 Golf Operations 0.1 (0.4) (0.4) Agriculture and Other Income (0.1) 0.1 0.1 Total Segment Income (1) $9.7 $23.5 $15.2 P

  11. Slide 11: Sources of Net Operating Cash Flows

    Sources of Net Operating Cash Flows as of June 30, 2015 ($’s in millions) Only 4% of year-to-date Cash Flows has come from Land Sales 11

  12. Slide 12: Balance Sheet - Highlights

    Balance Sheet - Highlights as of June 30, 2015  Income Properties - (Historical Cost)(1) $192.5 million (1)  Low Basis in Land Holdings Average basis $3,700/acre  Basis in Subsurface Interests $0  Deferred Tax Liability -1031 Deferred Gains $40.1 million  Shares Repurchased (in Treasury) 56,234

  13. Slide 13: Income Producing Investments

    Income Producing Investments 1 (1) Geographic Exposure Florida 53% North Carolina 9% 1 Georgia 9% 1 Arizona 7% 1 California 6% 2 Texas 6% 9 3 3 Washington 4% Colorado 3% 21 Maryland 2% 1 Number of Income Property Investments (2) Illinois 1% Location of Loan Investments CTO Headquartered in Daytona B

  14. Slide 14: Improving Income Portfolio Demos

    Improving Income Portfolio Demos As of July 24, 2015 Big Lots & Container Store Lowe’s Glendale, AZ Katy (Houston), TX Single Tenant Portfolio: Average 3 mi. Population: 97,000 14 Average 3 mi. Household Income: $77,500

  15. Slide 15: Improving Income Portfolio Demos

    Improving Income Portfolio Demos As of July 24, 2015 Big Lots Bank of America Germantown, MD Laguna Beach, CA Single Tenant Portfolio: Average 3 mi. Population: 97,000 15 Average 3 mi. Household Income: $77,500

  16. Slide 16: Top Single Tenants by Rent

    Income Properties Top Single Tenants by Rent As of June 30, 2015 (1) (1) Guaranteed by Holiday CVS, L.L.C. a wholly-owned subsidiary of CVS Caremark Approx. 56% of rent income from Investment Grade tenants 16

  17. Slide 17: 2015 Acquisitions Core Investment

    Income Properties 2015 Acquisitions The Container Store (Glendale, AZ) $8.6mm Investment  Above mid-point of investment yield guidance  14.7 years remaining on lease  3-mi Pop. 106,525  3-mi Avg HHI $76,173  23,329 Square Feet  2015 New Construction  Single-Tenant, Triple Net Lease  Outparce

  18. Slide 18: Upgrading the Portfolio

    Income Properties Upgrading the Portfolio Recent DISPOSITIONS: Recent ACQUISITION:  Sold 2 vacant CVS stores in Florida in April 2015  $8.6mm investment located adjacent to Arrowhead Mall in Glendale, AZ  $6.4mm in sales proceeds  Off-market transaction; closed May 2015  8.7 years remaining lea

  19. Slide 19: 2015 Acquisitions Core Investment

    Income Properties 2015 Acquisitions 245 Riverside (Jacksonville, FL) $25.1mm Investment  Class A Office property  Above mid-point of investment yield guidance  Investment basis ($185/sq ft) below replacement cost  5.4 years weighted average remaining on lease  99% Occupied  136,856 Square Feet

  20. Slide 20: 2014 Acquisition Core Investment

    Income Properties 2014 Acquisition Whole Foods Market Centre (Sarasota, FL) $19.1mm Investment  At low end of investment yield guidance  7.1 years weighted average remaining on leases  59,341 Square Feet - 95% Occupied  3-mi Pop. 68,157  3-mi Avg HHI $63,561  36,000 square feet (or 61% of prop

  21. Slide 21: 2014 Acquisition Core Investment

    Income Properties 2014 Acquisition Lowe’s (Katy, TX) $14.7mm Investment  Lower end of investment yield guidance  12.8 years remaining on lease  A- Credit  3-mi Pop. 97,925  3-mi Avg HHI $98,939  131,644 Square Feet Core Investment 21

  22. Slide 22: 2013 Acquisition Core Investment

    Income Properties 2013 Acquisition Big Lots (Germantown, MD) $5.0mm Investment  Mid-point of investment guidance  9 years remaining on lease  BBB- Credit  3-mi Pop. 90,931  3-mi Avg HHI $105,968  25,589 Square Feet  Low basis  Below market rent rate Core Investment 22

  23. Slide 23: Self-Developed Properties: weighted average occupancy 91%

    Income Properties Self-Developed Properties: weighted average occupancy 91% as of June 30, 2015 Concierge Office Mason Commerce Center Williamson Business Park  2 Story Office  2 Properties – Flex Office  2 Properties – Flex Office  Approx. 22,000 square feet  Approx. 31,000 square feet  Appro

  24. Slide 24: Where does the Stock Market Value our Land?

    Land Holdings Where does the Stock Market Value our Land? As of June 30, 2015 (unless otherwise noted) Shares 5,994,232 Share Price (as of July 24, 2015) $57.42 Market Capitalization (as of July 24, 2015) 344,188,801 Long-Term Debt (at Face Value) (1) 135,400,000 Deferred Income Taxes (Net) 35,515,4

  25. Slide 25: Harvesting Value: Completed Land Transactions

    Land Holdings Harvesting Value: Completed Land Transactions MEDICAL Sold 3.02 acres OFFICE $167k/ac | June 2015 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/a

  26. Slide 26: Harvesting Value: Potential Land Transactions

    Land Holdings Harvesting Value: Potential Land Transactions WEST OF I-95 Total Acres East of I-95 Potential Transaction 1 Approx. 1,400 acres Buyer: Minto Communities Approx. 1,600 acres 3 Potential Transaction 2 Total Acres West of I-95 Approx. 17 +/- acres Approx. 8,100 acres 7 EAST OF I-95 1 4 Po

  27. Slide 27: 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 Golf Club  > 3,000 single-family homes  Golf-cart friendly lifestyle  Resort-style town center with - clubhouse, restaurants, and

  28. Slide 28: Tomoka Town Center

    Land Holdings Tomoka Town Center 18 +/- Acres 39 +/- Acres Approximately 230 Acres 28

  29. Slide 29: Land Sale – Distribution Center

    Land Holdings Land Sale – Distribution Center (630,000 sq ft refrigerated facility) 76.5 Acres Sold in 2014 Q3 2014 Q2 2015 Stock Cars Aren’t the Only Things that Move Fast in Daytona 29

  30. Slide 30: Commercial Loan Investments

    Loan Investments Commercial Loan Investments $24 million invested As of June 30, 2015  DFW Hyatt  Southgate Mall  The Glenn Hotel  Dallas, Texas  Sarasota, Florida  Atlanta, Georgia  $10mm Mezzanine Loan  $9.0mm B-Note  $5mm Mezzanine Loan  Rate: LIBOR + 725  Rate: LIBOR + 750  Rate: 12%

  31. Slide 31: Commercial Loan Investments

    Loan Investments Commercial Loan Investments As of June 30, 2015 Completed Loan Investment Location Loan Amount Term (2) IRR ($’s in millions) (Years) Mortgage Loan – Glenn Hotel Atlanta, GA (1) $17.5 0.4 39.39% Construction Loan – Container Store Glendale, AZ $6.2 1.1 7.81% Mortgage Loan - Plantati

  32. Slide 32: Subsurface Interests

    Subsurface Interests Subsurface Interests  CTO Earned Approx.   $7.9mm in Past 3 years from Subsurface  Basis in Subsurface Interests = $0 Approximately 95% of total subsurface acres  Cap Ex Remaining 5% of total subsurface acres requirements $0  Counties with active or historic oil/gas produc

  33. Slide 33: Liquidity and Leverage

    Liquidity and Leverage as of June 30, 2015 Liquidity Position Leverage Position (excluding restricted cash) ($ in millions) ($ in 000’s)  100% of Debt at Fixed rate as of June 30, 2015  $0 Drawn on $75 million Credit Facility  Average Maturity 8.4 years (1) Borrowing Base Amount Maturity in (A) (

  34. Slide 34: 2015 Guidance (updated as of 7/21/15)

    2015 Guidance (updated as of 7/21/15) Guidance YTD Q2 2015 Earnings per share (on a fully diluted basis) $1.45 - $1.70/ share $0.10/share Acquisition of Income-Producing Assets $70mm - $90mm $33.7mm (1) Target Investment Yields (Initial Yield – Unlevered) 6% - 8% Disposition of Non-Core Income Prope

  35. Slide 35: Shareholder Friendly

    Shareholder Friendly  Share repurchases: approx. 56,200 shares since 2012 ($2.2 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)  Implement

  36. Slide 36: Share Repurchase Program – Activity since 2012

    Share Repurchase Program – Activity since 2012  Total Authorized Share Repurchase Program $8.0 million Shares Average Year Investment Repurchased Price/Share 2012 14,634 $453,654 $31.00 2014 25,836 $927,913 $35.92 2015 15,764 $858,695 $54.47 Totals/ Average 56,234 $2,240,262 $39.84  Total Authoriz

  37. Slide 37: Why Consider being a REIT?

    Why Consider being a REIT?  Tax Efficient Structure  Converting Land into Income Properties – Increasing Taxable Income  Benefits from Expanded Shareholder base − Dedicated REIT Investors − REIT Index and ETF Investors, etc.  Potential to Eliminate Deferred Tax Liability for 1031 Exchanges  Pot

  38. Slide 38: Experienced Team

    Experienced Team Started with Company • Archon Capital, a Goldman Sachs Company John P. Albright • Morgan Stanley 2011 President and CEO • Crescent Real Estate Equities • Simply Self Storage Mark E. Patten • CNL Hotels & Resorts 2012 Senior Vice President and CFO • Vistana Inc. • KPMG Daniel E. Smit

  39. Slide 39: Board of Directors

    Board of Directors Director Since President & Chief Executive Officer of the John P. Albright 2012 Company John J. Allen President of Allen Land Group, Inc. 2009 Chairman of the Board of the Company and Jeffry B. Fuqua 2009 President of Amick Holdings, Inc. Certified Public Accountant and Partner of

  40. Slide 40: Contact Us

    Contact Us Consolidated-Tomoka Land Co. 1530 Cornerstone Boulevard Daytona Beach, FL 32117 main: 386.274.2202 fax: 386.274.1223 email: info@ctlc.com web: www.ctlc.com NYSE MKT: CTO For additional information, please see our most recent Annual Report on Form 10-K, copies of which may be obtained by w

  41. Slide 41: Appendix

    CONSOLIDATED TOMOKA Appendix 41

  42. Slide 42: Well-Positioned Land

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  43. Slide 43: Well-Positioned Land

    Well-Positioned Land “UP. TO» 2002)ACRES Ly; - 80+, ACRES | UP TO 80+ ACRES SONSOLIDATED @a TOMOKA

  44. Slide 44: Well-Positioned Land

    Well-Positioned La nd — a ge werd FLORIDA HOSPITAL § Memon Mroica, Contin CONSOLIDATED @a TOMOKA

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