Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Consolidated Tomoka Land — Shareholder Meeting (April 2017)
43 slides from Cto Realty Growth's shareholder meeting presentation, Apr 26, 2017
Slide 1: We’re Picking Up Speed: 2017 Annual Shareholders Meeting
We’re Picking Up Speed 2017 Annual Shareholders Meeting CVS, Dallas, Texas April 26, 2017 (NYSE MKT: CTO)
Slide 2: Forward Looking Statements
PART III Forward Looking Statements Forward Looking Statements 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
Slide 3: About CTO
About CTO Consolidated-Tomoka Land Co. (NYSE: CTO) is a 107-year old Florida-based publicly traded real estate company, which owns a high-quality portfolio of income investments in diversified markets in the United States including: 1.9 million sq. ft. of income properties 8,200 acres of undevel
Slide 4: CTO’s Strategy
PART I CTO’s Strategy Under current management. - sold 2,599 acres of land (1) with additional ≈ 2,100 acres under contract (2) Portfolio value of >$300 million with more than $21 million in NOI (2), growing free cash flow In strong, high-growth markets like Raleigh, Santa Clara, Dallas, and Austin
Slide 5: Stock Price Performance vs Peers & Indexes
PART I Stock Price Performance vs Peers & Indexes 5 Year Return Vs. Peer Group & Indexes, (3/6/2012– 3/6/2017) 150 120 Consolidated-Tomoka Land Co. Russell 2000 90 MSCI REIT Index 2017 Peer Group 60 30 0 -30 3/2012 9/2012 3/2013 9/2013 3/2014 9/2014 3/2015 9/2015 3/2016 9/2016 3/2017 Vs. Land Compan
Slide 6: Highlights of Performance: 2016 Year in Review
PART I Highlights of Performance 2016 Year in review Monetizing land Sold over 700 acres for ≈ $14 million Acquired 10 properties, ≈$86.7 million, average investment cap rate ≈6.3% Investing in income properties Sold ≈$74.3 million of income properties, ≈$11.3 million profit, ≈5.8% blended exit cap
Slide 7: Performance in Perspective
PART I Performance in Perspective Since becoming public in 1969 $2.86: 2016 Highest Earnings (per share) in Company History $19.1(1) million: Total buybacks since 2012, most in Company History Notable Firsts 1st Tanger Outlet development in state of Florida 1st Latitude Margaritaville in United Stat
Slide 8: Track Record of Strong Operating Results
Track Record of Strong Operating Results Annual Results for 2012 – 2016 2016 Highest EPS in CTO History Total Revenues ($000’s) Basic Earnings Per Share $2.86 $80,000 $3.00 $71,075 $2.50 $60,000 $2.00 $36,057 $40,000 $1.50 $1.00 $20,000 $0.50 $-$0.00 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Slide 9: CTO Snapshot
PART I CTO Snapshot As of March 31, 2017 (unless otherwise noted) Operating Segments Land Holdings (2) Subsurface Interests (2) Income Properties Loan Investments from 2014 - 2016 Converting Land to Income Growing Cash Flow (1) As of April 25, 2017 (2) Land holdings and subsurface interests are pa
Slide 10: Momentum Monetizing Land
Momentum Monetizing Land Monetizing Land With Tax Deferred Strategy Annual Land Sales for 2005 – 2016, YTD 2017 & Pipeline (A) as of 4/25/17 (Land Sales in $000’s) Current Management Team $100,000 2005 – 2011 Total Sales $86.7mm Acres Sold 1,077 2012 – YTD 2017 Total Sales $84.8mm Acres Sold
Slide 11: Analysis of Price/Acre (since 2012)
Analysis of Price/Acre (since 2012) NORTH AMER DEV. GP. BUC-EE'S RACETRAC INTRACOASTAL SPECIALTY GROCER COMMERCIAL E-95 TRANSACTION 6 TANGER SAM'S NORTH AMER. DEV GP. SUPERWASH VOLUSIA ORTHO COMMERCIAL W-95 CARMAX COMMERCIAL W-95 INTEGRA NORTH AMER DEV. GP. HALIFAX HUMANE SOC. VANTRUST - B. BRAUN DI
Slide 12: Pipeline of Potential Land Sales
(A) Pipeline of Potential Land Sales As of April 25, 2017 8 Different Buyers; 26% of Remaining Land Total Acres West of I-95 Approx. 7,100 Acres Total Acres East of I-95 Approx. 1,100 Acres Contract Amount (rounded) Price per Acre (rounded) Contract/Parcel Acres Timing 7 North Amer. Dev Grp 82 $20.2
Slide 13: Land Under Contract (Phase II)
(A) Land Under Contract (Phase II) Phase I Sold in Q1 2017 1,686 Total Acres $31.4mm Sales Price $19,000 Price Per Acre ‘18 – ‘19 Expected Closing Age Restricted Residential First Latitude Margaritaville in U.S. 13 Land Sold by CTO Since 2012
Slide 14: Land Under Contract: Tomoka Town Center
(A) Land Under Contract Tomoka Total Acres Town Center 82 $20.2mm Sales Price $246,000 Price Per Acre ‘17 – ‘18 Expected Closing Big Box Power Center Expected Development 2018 14 Land Sold by CTO Since 2012
Slide 15: Land Under Contract: First Buc-ee’s Outside Texas
(A) Land Under Contract 35 Total Acres $14.0mm Sales Price $400,000 Price Per Acre ‘18 – ‘19 Expected Closing Commercial/Retail First Buc-ee’s Outside Texas 15 Land Sold by CTO Since 2012
Slide 16: Land Under Contract: Buc-ee’s Rendering
(A) Land Under Contract Rendering of typical Buc-ee’s Location Rendering is representative of a typical Buc-ee’s location not intended to represent the actual rendering for the Daytona Beach location Commercial/Retail First Buc-ee’s Outside Texas 16
Slide 17: Land Under Contract: National Specialty Grocer
(A) Land Under Contract 9 Total Acres $2.7mm Sales Price $300,000 Price Per Acre ‘18 – ‘19 Expected Closing Commercial/Retail National Specialty Grocer 17 Land Sold by CTO Since 2012
Slide 18: Absorption of Land West of I-95
(A) Absorption of Land West of I-95 Contract Amount or Est. Value per Acre E 1,053 Acres Parcel Use Est. Timing A 1,686 Acres D 2,366 Acres B 146 Acres C 129 Acres Largest Area of Land Holdings 18 Land Sold by CTO Since 2012 A Residential $31.4mm ‘18 – ‘19 B Residential $1.4mm ‘18 – ‘19 C Residentia
Slide 19: Tanger· Outrets BI BRAUN SHARING EXPERTISE " VanTrust REAL ESTATE LLC ToBuild Home Services-am·s
Tanger· Outrets BI BRAUN SHARING EXPERTISE " VanTrust REAL ESTATE LLC ToBuild Home Services-am·s Since 2012 - CONSOLIDATED leJI TOMOKA S CLUB
Slide 20: Attracting High Quality Companies
PART I Attracting High Quality Companies Total Investment in Development (1) Jobs (1) Open Date (1) Use Year Sold Acres Auto Dealership 2013 6 $5 Million 50 Oct ‘16 Distribution Center 2014 76 $ 85 Million 500 Jun ‘15 Outlet Mall 2015 39 $100 Million 900 Nov ‘16 Building Supply 2014 21 $ 10 Million
Slide 21: Development Status - Buyers of CTO Land
PART APPEINDIX Development Status - Buyers of CTO Land As of April 25, 2017 Phase I Sold in Q1 2017 <2 miles To <1 mile To 3,400 Total Units 2018 Expected delivery Development Underway First Lots Expected 2018 21
Slide 22: As of April 25, 2017 Sold in Q4 2016 LAND COMPANY Multi-Family Residential• 263
As of April 25, 2017 Sold in Q4 2016 LAND COMPANY Multi-Family Residential• 263 Apartments I 22 -CONSOLIDATED leJI TOMOKA
Slide 23: Diversified High Quality Portfolio
Diversified High Quality Portfolio As of April 25, 2017 Total Portfolio – Annual NOI(D) ≈ $21.1mm Largest Markets (D) Approx. 43% of NOI from Investment Grade Tenants (I) Portfolio Mix (D) Different Industries in Tenant Mix 44% 37% 56% 63% Investment Grade Tenants (I) Single‐TenantMulti‐Tenant Offic
Slide 24: Diversified High Quality Portfolio: Geographic and Tenant Diversification
Diversified High Quality Portfolio As of April 25, 2017 Other 6.2% Boston Reno 2.2% Raleigh 16.4% 2.7% Seattle 2.7% Dallas 4.0% 245 Riverside Ave. Jacksonville, FL Wells Fargo Raleigh, NC 3600 Peterson Santa Clara, CA Century Theatre Reno, NV Charlotte 4.3% Santa Clara 10.7% Houston 4.4% CVS Dallas,
Slide 25: Portfolio Transformation
Portfolio Transformation More Than Doubled NOI While Diversifying and Upgrading Portfolio 5 Other 10.7% Arizona 4.8% Florida 31.0% Florida 60.4% Georgia 6.1% Georgia 21.4% 2011(1) 2017(2) California 12.1% North Carolina 18.2% North Carolina 20.6% Texas 14.7% 589,000 1,866,000 Total Square Feet Total
Slide 26: CTO is a Trusted Counterparty
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Slide 27: Opportunistic Investments in Income
Opportunistic Investments in Income The Beach Parcel The Grove at Winter Park 6.04 acres ≈112,000 sq. ft situated on 14.35 acres Daytona Beach Near Term Investment: 2 Single Tenant Properties (restaurants) New Anchor Tenant • Expected opening Q1 2018 • Effectively vacant property at acquisition • To
Slide 28: Opportunistic Investments in Income: The Beach Parcel
Opportunistic Investments in Income As of April 25, 2017 The Beach Parcel 6.04 acres Daytona Beach Daytona Beach Pier Finding Opportunistic Value Creating Favorable Returns 28
Slide 29: The Beach Parcel
The Beach Parcel 6,000+ sq. ft. - LandShark Bar & Grill Finding Opportunistic Value • Creating Favorable Returns I 29 -CONSOLIDATED leJI TOMOKA
Slide 30: The Grove - Before and After
The Grove - Before and After Finding Opportunistic Value • Creating Favorable Returns I 30 -CONSOLIDATED l . TOMOKA
Slide 31: Potential Redevelopment Opportunities
Potential Redevelopment Opportunities Potential for Redevelopment Property Site Size Current Improvements 0.91 Acres CVS single story Approx. 400,000 sq. ft. Dallas, Texas Bank of America Monterey, California Up to 4 stories, or multiple Single tenant properties 1.26 Acres BofA branch (2 story) 5.24
Slide 32: Fastest Growing MSA’s in U.S.
Fastest Growing MSA’s in U.S. As of August 2016 Population Size Orlando - Kissimmee - Sanford 4.4% 1,213 Seattle - Tacoma - Bellevue 3.7% 1,974 San Jose - Sunnyvale - Santa Clara 3.6% 1,087 Dallas - Ft. Worth - Arlington 3,532 Denver - Aurora - Lakewood 1,455 Tampa - St. Petersburg - Clearwater 1,28
Slide 33: How CTO’s Portfolio Stacks Up
How CTO’s Portfolio Stacks Up 3-Mile Population (1) Implied Cap Rate (2) 100,000 10.0% 85,355 7.5% 80,000 7.1% 58,580 5.6% 54,502 53,043 60,000 51,526 51,452 4.9% 5.0% 40,000 20,000 0 0.0% CTO NNN O ADC VER SRC CTO NNN O ADC VER SRC 3-Mile Median Household Income (1) 3-Mile Avg. Household Income (1)
Slide 34: Top Tenants versus Peers
Top Tenants versus Peers 13.4% 7.0% 10.5% 5.5% BBB+ 3.3% 0.0% 5.0% 10.0% 15.0% 0.0% 5.0% 10.0% 15.0% 0.0% 5.0% 10.0% 15.0% Better Credit Better Real Estate Source: FBR & Co., SNL Financial, Inc. % reflects percentage of NOI 34 AA-BB+ 7.5% BBB-6.0% A 4.4% BBB AA 4.3% A 3.2% NR 2.8% NR 2.7% BBB BBB
Slide 35: Commercial Loan Investments
Commercial Loan Investments $24 Million Portfolio at March 31, 2017 Weighted Avg. Yield 9.1% Maximum Maturity 1.8 Years DFW HYATT SOUTHGATE MALL GLENN HOTEL $10.0mm Mezzanine Loan Dallas, TX Rate: LIBOR + 725 Maturity: Sept. ’17 Max Maturity: Sept ‘19 $9.0mm B-Note Sarasota, FL Rate: LIBOR + 750 M
Slide 36: Golf Operations
Golf Operations LATITUDE MARGARITAVILLE 3,400 Homes Radius of <5 miles Fee simple interest in 100% of operations Existing Homes at LPGA International & Bayberry I ≈1,000 Homes >700 acres of land Two 18-Hole Championship golf courses 80,000 sq. ft. practice area (3-hole practice course) 18,000 sq. ft
Slide 37: Liquidity & Leverage
Liquidity & Leverage As of March 31, 2017 Liquidity Position ($ in 000’s) 85% of Debt at Fixed 62% Unsecured rate Debt Schedule ($ in millions) Credit Facility Convertible Notes CMBS Loan CMBS Loan Mortgage Loan Total $ 50.5 - - - $ 24.5 75.0 30.0 7.3 2.96% (3) 4.50% 4.33% 3.66% 1.3 3.0 17.6 (4) 0.9
Slide 38: G&A Expense vs Peers
G&A Expense vs Peers G&A Expenses vs Peers(1) For Year Ended December 31, 2016 14 Employees – Avg. Tenure 6 years 7 Board members (% of Total Enterprise Value) 4% 3.4% 3% 2% 1% 0% Peer Group Average(1) Land Co. Average (3) CTO (reported) CTO (Adj Basis) (2) Peer Grp <$750mm TEV (1) Peer Grp >$750mm
Slide 39: Returning Capital to Shareholders
Returning Capital to Shareholders Cumulative From 2012 Through April 25, 2017 Cumulative $ Repurchased Cumulative Shares Purchased 400,000 $16,000,000 320,000 $12,000,000 240,000 $8,000,000 160,000 $4,000,000 80,000 $-0 2012 2013 2014 2015 2016 YTD 2017 Opportunistically Repurchasing Accretive to
Slide 40: Board of Directors
Board of Directors John J. Allen President, Allen Land Group, Inc. and Mitigation Solutions, Inc. Howard C. Serkin Chairman, Heritage Capital, Inc. John P. Albright President & Chief Executive Officer, Consolidated-Tomoka Land Co. Thomas P. Warlow, III Chairman, Georgetown Enterprises, Inc. Presiden
Slide 41: Management Team
Management Team Started with Company John P. Albright President & Chief Executive Officer • • • Archon Capital, a Goldman Sachs Company Morgan Stanley Crescent Real Estate Equities Mark E. Patten Senior Vice President & Chief Financial Officer • • • • Simply Self Storage CNL Hotels & Resorts Vistana
Slide 42: I - CONSOLIDATED (IJI TOMOKA
I 42 - CONSOLIDATED (IJI TOMOKA
Slide 43: Contact Us
We’re Picking Up Speed Contact Us Consolidated-Tomoka Land Co. 1530 Cornerstone Boulevard Daytona Beach, FL 32117 P: 386.274.2202 F: 386.274.1223 info@ctlc.com 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 obtaine
Consolidated Tomoka Land — Shareholder Meeting (April 2017) on 6ix