Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Q2 2020 Earnings Presentation
29 slides from Cto Realty Growth's earnings presentation, Jul 30, 2020
Slide 1: Q2 2020 Investor Presentation
PRESENTATION JULY 2020 NYSE Amencan: CTO Q2 2020 INVESTOR
Slide 2: Safe Harbor / Forward Looking Statements
SAFE HARBOR Statements contained in this presentation that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Words such as “believe,” “estimate,” “expect,” “intend,” “anticip
Slide 3: CTO by the Numbers
AS OF July 27, 2020 (UNLESS OTHERWISE NOTED) FIDELITY,ALBUQUERQUE NM | 210,067 SF WELLS FARGO, RALEIGH NC | 450,393 SF GENERAL DYNAMICS INFO TECH, RESTON, VA | 64,319 SF (NET OF CASH) (4) THE STRAND, JACKSONVILLE FL | 212,402 SF Q3 2020 ANNUALIZED DIVIDEND (C) Q2 2020 BOOK VALUE PER SHARE Q2 2020 NE
Slide 4: Investment highlights and strategic priorities
1)Free cash flow before taxes, capital expenditures and/or dividends 2)Based on 7/27/2020 closing price of $14.44 CTO Realty Growth, Inc. Q2 2020 INVESTOR PRESENTATION 4 REIT CONSIDERATION Pursuing REIT Election for 2020 MONETIZING LAND JV 1,800 Acres Remaining/$90mm - $110mm Estimated Sales Value
Slide 5: Land Joint Venture Summary
After JV Partner receives their capital back plus preferred return, CTO receives 90% of all excess proceeds (1) As of 7/27/2020 CTO Realty Growth, Inc. Q2 2020 INVESTOR PRESENTATION 5 Land Remaining (Under Contract 267 Acres/$31mm)(1) 1,800 acres JV Partner Current Capital Account at 7/15/2020 $45mm
Slide 6: Land Joint Venture: Largest Remaining Parcels
Largest Remaining Parcels CTO Realty Growth, Inc. Q2 2020 INVESTOR PRESENTATION 6 177 Acres/Tomoka North $25mm - $35mm 850 Acres/Industrial Park $20mm - $30mm 155 Acres/Tomoka Village $7mm - $10mm 32 Acres/Florida Hospital $5mm - $8mm LAND JOINT VENTURE
Slide 7: 2020 Income Property Dispositions
PROPERTY LOCATION PRICE CAP RATE Dallas, Texas $15.2 mm 4.50% Daytona Beach, Florida $6.0 mm 4.75% Dallas, Texas (1) $2.4 mm 6.08% Jacksonville, Florida $6.7 mm 4.15% Monterey, California $9.0 mm 3.28% Jacksonville, Florida $7.1 mm 4.90% TOTAL $46.4 mm 4.39% AS OF JULY 27, 2020 1)Multi-tenant income
Slide 8: Impact of COVID-19
Paid 87% Paid 84% Deferred 7% Abated 1% Deferred 5% Abate d 1% Unresolved 8% Unresolved 7% Strong & improving rent collections Deferral arrangements generally defer 2nd quarter rent with payment into late 2020 / early 2021 Current negotiations seeking similar deferral structure or obtaining mo
Slide 9: Historical Financial Results
Annual Results : 2015 – Q2 YTD 2020 ($000’s) $60,000 $25.00 $23.03 $44,941 $43,658 $20.00 $40,000 $15.00 (2) $10.00 $7.53 $6.76 $20,000 $5.00 $2.86 $1.44 $0.07 $0.00 $-2015 2016 2017 2018 2019 YTD Q2 2020 2015 2016 2017 2018 2019 YTD Q2 2020 ($000’s) $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $
Slide 10: Debt Overview / Leverage Summary
DEBT OVERVIEW As of July 27, 2020 (unless otherwise noted) Unsecured 81% Fixed 77% Floating 23% Secured 19% Revolving Credit Facility (1) 2025 Convertible Senior Notes Mortgage Note Payable Mortgage Note Payable $162,845 $62,468 $30,000 $23,536 $37,155 $0 $0 $0 2.02% 3.88% 4.33% 3.17% 2.83 4.72 14.2
Slide 11: Income Property Portfolio
AS OF 7/27/2020 (UNLESS OTHERWISE NOTED) TOP CITIES: Jacksonville Atlanta Phoenix Albuquerque Raleigh Washington, D.C. Area (VA/MD) Population: Avg. HHI: Median HHI: 88,802 $96,289 $78,295 GEOGRAPHIC DIVERSITY PORTFOLIO QUICK GLANCE PORTFOLIO MIX Other, 69% 30 $36.0 ≈2.2 11 9% FL 26% VA 8% 46% 54% T
Slide 12: Location Matters
CTO Properties in Top U.S. Markets: CTO Realty Growth, Inc. Q2 2020 INVESTOR PRESENTATION 12 Houston, TX Washington, D.C. Area (VA/MD) Dallas/Ft. Worth, TX Seattle, WA Charlotte, NC Raleigh, NC Phoenix, AZ Atlanta, GA New York, NY Aspen, CO Jacksonville, FL Austin, TX LOCATION MATTERS
Slide 13: Quality Tenants
MATTERS These high-quality tenants represent >40°/o of CBR(F) w Fidelil}! RAYMOND JAMES A)t, Albertsons0 iZOSS Di2ESS FOi2 LESS ..... BICft - A LOTS•. HOBBY LOBBY Super Sauings ,Super Selection! PNC Clurlington p Northwestern Mutual -\I Wealth Management Company GENERAL DYNAMICS C:HASEO CTO Realty G
Slide 14: Perimeter Place, Atlanta, GA
MULTI-TENANT RETAIL | ACQUIRED FEBRUARY 2020 ACQUISITION PRICE: $75.4mm Growth: Opportunity to lease 59,000 square feet of vacant space CTO Realty Growth, Inc. Q2 2020 INVESTOR PRESENTATION 14 PERIMETER PLACE| ATLANTA, GA
Slide 15: Perimeter Rebranding
Opportunity to Build a Stronger Brand CTO Realty Growth, Inc. Q2 2020 INVESTOR PRESENTATION 15 Rebranding Perimeter Place to Ashford Lane PERIMETER REBRANDING
Slide 16: The Strand, Jacksonville, FL
MULTI-TENANT RETAIL | ACQUIRED DECEMBER 2019 ACQUISITION PRICE: $62.7mm Adjacent to St. John’s Town Center CTO Realty Growth, Inc. Q2 2020 INVESTOR PRESENTATION 16 THE STRAND| JACKSONVILLE, FL
Slide 17: Crossroads Towne Center, Chandler, AZ
MULTI-TENANT RETAIL | ACQUIRED JANUARY 2020 ACQUISITION PRICE: $61.8mm Includes 9 outparcels CTO Realty Growth, Inc. Q2 2020 INVESTOR PRESENTATION 17 CROSSROADS TOWNE CENTER| CHANDLER, AZ
Slide 18: Fidelity, Albuquerque, NM
SINGLE-TENANT OFFICE| ACQUIRED OCTOBER 2018 ACQUISITION PRICE: $44mm CTO Realty Growth, Inc. Q2 2020 INVESTOR PRESENTATION 18 FIDELITY | ALBUQUERQUE, NM
Slide 19: Wells Fargo, Raleigh, NC
I ACQUIRED NOVEMBER2015 SINGLE-TENANT OFFICE ACQUISITION PRICE: $42.3mm Includes future development parcel CTO Realty Growth, Inc. Q2 2020 INVESTOR PRESENTATION 19 RALEIGH, NC WELLS FARGO
Slide 20: Aspen Core Building, Aspen, CO
SINGLE-TENANT RETAIL | ACQUIRED FEBRUARY 2018 ACQUISITION PRICE: $26.5mm (1) (1) Excludes $1.5 million of the purchase price contributed by the master tenant in conjunction with the acquisition of the property. CTO Realty Growth, Inc. Q2 2020 INVESTOR PRESENTATION 20 ASPEN CORE BUILDING | ASPEN, CO
Slide 21: 245 Riverside, Jacksonville, FL
MULTI-TENANT OFFICE| ACQUIRED JULY 2015 ACQUISITION PRICE: $25.1mm CTO Realty Growth, Inc. Q2 2020 INVESTOR PRESENTATION 21 245 RIVERSIDE | JACKSONVILLE, FL
Slide 22: General Dynamics, Reston, VA
SINGLE-TENANT OFFICE| ACQUIRED JULY 2019 ACQUISITION PRICE: $18.6mm CTO Realty Growth, Inc. Q2 2020 INVESTOR PRESENTATION 22 GENERAL DYNAMICS | RESTON, VA
Slide 23: Carpenter Hotel, Austin, TX
GROUND LEASE | ACQUIRED JULY 2019 ACQUISITION PRICE: $16.3mm CTO Realty Growth, Inc. Q2 2020 INVESTOR PRESENTATION 23 CARPENTER HOTEL | AUSTIN, TX
Slide 24: Westcliff Center, Ft. Worth, TX
I ACQUIRED MARCH 2017 MULTI-TENANT RETAIL ACQUISITION PRICE: $15mm Lease up opportunity on 38,000 square feet of vacant office/medical office CTO Realty Growth, Inc. Q2 2020 INVESTOR PRESENTATION 24 FT. WORTH, TX WESTCLIFF CENTER
Slide 25: FY 2020 Guidance
FY 2020 Guidance Year to Date Acquisition of Income-Producing Assets $160mm - $210mm $137mm Target Investment Yield (Initial Yield – Unlevered) 6.25% - 7.25% 7.8% Disposition of Income-Producing Assets $40mm - $60 mm $47mm Target Disposition Yield 6.50% - 7.50% 4.4% Leverage Target (as % of Total En
Slide 26: Property schedule by tenant and building
CTO Realty Growth, Inc. Q2 2020 INVESTOR PRESENTATION 26 PropertyRentable Tenant/BuildingLocationTypeAsset TypeSquare Feet% of NOI (A) The StrandJacksonville, FLRetailMulti-tenant212,40213.3% Perimeter PlaceAtlanta, GARetailMulti-tenant268,57213.3% CrossroadsPhoenix, AZRetailMulti-tenant197,929 Part
Slide 27: Property schedule (continued)
Property Rentable Square Tenant/Building Location Type Asset TypeFeet% of NOI (A) Lowe's Katy, TX Retail STNL 131,644 2.5% Burlington North Richland Hills, TX Retail STNL 70,891 2.3% Harris Teeter Charlotte, NC Retail STNL 45,089 2.0% Rite Aid Renton, WA Retail STNL 16,280 1.6% Landshark Bar & Grill
Slide 28: End Notes
End Notes references utilized in this presentation A. Net operating income (“NOI”) relates to our Income Property Operations segment and is calculated based on our current portfolio as of July 27, 2020 reflecting: estimated forward twelve months revenue and expenses as of July 1, 2020, excluding non
Slide 29: Q2 2020 Investor Presentation
PRESENTATION JULY 2020 NYSE Amencan: CTO Q2 2020 INVESTOR