Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Consolidated Tomoka Land — Q2 2014 Earnings Presentation
51 slides from Cto Realty Growth's earnings presentation, Aug 27, 2014
Slide 1: Q2 2014 Investor Presentation
i : : ‘ CONSOLIDATED @e TOMOKA Q?2 -— 2014 Investor Presentation June 30, 2014
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: Who is CTO?
GIO Highlights Portfolio Daytona Who is CTO? ™ Consolidated-Tomoka Land Co. is a real estate operating company founded over 100 years ago and public since 1969 @ CTO is primarily focused on transitioning from land assets into income-producing assets Lond > Income CONSOLIDATED \ TOMOKA
Slide 4: A Snapshot
Ele A Snapshot ‘As of June 30, 2014 unless otherwise noted (Sin millions except share data) CTO: Share Performance 30.67% CTO: Stock Price (as of August 18, 2014) $56.30 RMZ Index: Index Performance 12.87% Equity Market Capitalization (as of August 18, 2014) $329.7 Total Debt $76.2 Other Liabilities
Slide 5: A Snapshot
CTO A Snapshot Land & 10,500+ acres Subsurface 490,000+ acres Subsurface Rights Income 37 Single-Tenant Income Properties, 10 States) . 5 Self-Developed Flex/Office Properties Properties 21 Billboards“) First Mortgage Loan for Redevelopment of Retail Income Property Loan Investments Mezzanine Loan o
Slide 6: Why Invest?
CT®@ Highlights Portfolio Daytona Why Invest¢ Increase Income Credits & Markets Converting Land to Income Florida Real Estate Recovery Share Repurchase Shareholder Friendly oon. Unlocking Shareholder Value ‘
Slide 7: By the Numbers
Highlights Portfolio Daytona By the Numbers Annual Results for 2011 — 2013 and YTD as of June 30, 2014 $0.80 Earnings $0.64 $0.60 Per Share $0.39 Total Revenues $25,838 $30,000 : $0.40 os co ($000’s) $0.10 $0.20 $16,233 $20,000 $12,966 $13,361 si —a ad $15,000 $00.20) $10,000 $00.40) $5,000 - $(0.60
Slide 8: Balance Sheet
Highlights Portfolio Daytona Balance Sheet as of June 30, 2014 ($ in 000°s) ASSETS Property, Plant, and Equipment Land, Timber, and Subsurface Interests Golf Buildings, Improvements, and Equipment Income Properties Land, Buildings, and Improvements Other Furnishings and Equipment Construction in Pro
Slide 9: Focus on Income Investments
Ele Highlights Portfolio Daytona Focus on Income Investments Annual Results for 2011 — 2013 and YTD as of August 18, 2014 ($ in millions ) $60.0 $50.0 $39.3 $40.0 $30.0 $20.3 $20.0 $10.0 Ss $- oe INCOME PROPERTY COMMERCIAL LOAN AGGREGATE INVESTMENTS INVESTMENTS INVESTMENTS CONSOLIDATED TOMOKA 2011 6
Slide 10: Historical Land Revenue
Highlights Portfolio Daytona Historical Land Revenue $40,000 Annual Land Revenue for 2005 — 2013 and YTD as of August 18, 2014 $35,000 (Land Revenue in $000s) $30,000 $23,095 $25,000 $20,703 $20,000 $15,000 82 $10,000 $8,1 $4,258 $5,000 $2,502 $2,990 g--:8 $0 2005 2006 2007 2008 2009 2010 2011 2012
Slide 11: Income Investments — 2014
CTO Highlights Portfolio Daytona Income Investments — 2014 As of August 18, 2014 @ Acquisitions — 2single-tenant income properties — $20.0mm aggregate purchase price — 1 new state (TX) "| — Average remaining lease term of 10.32 years PREG SiGnaSIRE — 2014 Investment Yield Guidance 6-9% H Disposition
Slide 12: Income Producing Investments Portfolio
Highlights |Nperfolie Income Producing Investments 1 Newstate as of August 18. 2014 O Location of Commercial Loan |) V) Number of Income Property Investments Yellow state = new state CONSOLIDATED OU TOMOKA
Slide 13: Top Tenants by Rent
CIO Highlighise! = Portfolio Top Tenants by Rent As of June 30, 2014 Credit % of % of Credit % of % of Retailer Retailer Type Rating Stores GLA Rent Retailer Retailer Type Rating Stores GLA Rent CVS _ pruGcsToRE NR 811.6% =~ 20.0% DRUG STORE B 1 19% = 5.0% Wrbgreena. DRUG STORE BBB 5) = 83% ~©—-14.0
Slide 14: Diversifying Portfolio
Diversifying ey sIa!e @ based on rent as of June 30, 2014
Slide 15: 2014 Acquisition: Lowe's, Katy TX
Portfolio 2014 Acquisition M@ Lowes — Katy, TX — $14.7mm, 12.8 years remaining — 3-mi Pop. 99,003; 3-mi Median HHI $92,156
Slide 16: 2014 Acquisition: American Signature Furniture
2014 Acquisition ® American Signature Furniture — Daytona Beach, FL — $5.3mm, 5.6 years remaining — 3-mi Pop. 33,524; 3-mi Median HHI $38,696 AMERICAN SIGNATURE) FURNITURE
Slide 17: Improving Income Portfolio Demos
q® Highlights Portfolio Daytona Improving Income Portfolio Demos Portfolio average as of June 30, 2014 $100,000 $80,000 $54,856 $58,521 $60,000 $100,000 $72,350 $76,126 $80,000 $51,230 $60,000 $40,000 $40,000 $20,000 $20,000 $0 $0 2011 2012 2013 2011 2012 2013 3-Mile Median Household Income 3-Mile A
Slide 18: Improving Income Portfolio Demos
q® Highlights Portfolio Daytona Improving Income Portfolio Demos = Non-Power Center Average 3 mile Population (in 000’s) AKR VNO EQY FRT KIM ROIC WRI cTo REG RPAI BRX DDR Strip Non-Power Center Median 3 mile Household Income (in $000’s) $93 S16 $76 $72 sm. $70 $65 S62 $61 $61 $58 $55 FRT AKR REG ROI
Slide 19: Distribution Facility Land Transaction
Highlights —, Distribution Facility LAND TRANSACTION -— Daytona Beach, FL CLOSED — AUGUST 15, 2014 Gross Sales Price: $7.8mm ™ 76 Acres along I-95 and Dunn Avenue ® 630,000+ SF distribution facility ror ~ “EXPANSION DS» ® Estimated total capital investment by buyer approximately $80mm H Creation of
Slide 20: Bayberry Litigation Success
Bayberry || LITIGATION SUCCESS — Daytona Beach, FL FORECLOSURE COMPLETED JANUARY 2014 Originally sold 596 acres for $6.S5mm in 2004 ® Developer owed CTO $3.8mm for unreimbursed road costs in 2009 H In litigation from 2010 to 2013 Favorable court ruling for CTO and ultimate foreclosure in January 201
Slide 21: Self-Developed Properties
Highlights Self-Developed Properties @ Five properties totaling approximately 84,000 SF all in Daytona Beach, FL ™ Concierge Office: 1 property; approx. 22,000 square feet; 100% leased Two Story Office @ Mason Commerce Center: 2 properties; approx. 31,000 square feet; 94% leased One Story Flex ® Wil
Slide 22: Commercial Loan Investments
a® Highlights Portfolio Daytona Commercial Loan Investments a January 2014: Acquired $5.0mm Mezzanine loan at par — Secured by hotel in Atlanta, GA — Loan matures February 2019 — Fixed interest rate of 12% per annum = May 2014: Funded $3.1mm of $6.3mm First Mortgage loan — Loan to redevelop existing
Slide 23: Golf Operations
Highlights Golf Operations OPERATING RESULTS ($ in millions) $6.00 ies ius $5.07 $5.00 LPGA INTERNATIONAL $4.00 $2.85 DAYTONA BEACH $3.00 é $2.00 $1.00 s. j $- a BAR & GRILL $(1.00) $(0.42) 5 CT — lll $2.00) 2011 2012 2013 YTD Q2 2014 = OPERATING REVENUE mOPERATING INCOME (LOSS) MEMBERSHIP GROWTH HI
Slide 24: Subsurface Interests
Highlights Subsurface Interests =u Lease with Kerogen Florida Energy Co. wetter i - Amended 8-year oil exploration lease EXPLORATION LLC * Sept 2013 $1.0mm payment - drilling requirements * Sept 2013 $3.3mm payment - 34 year lease payment ¢ Leased acres total 82,000 in Hendry County, FL « Renewable
Slide 25: Subsurface Interests
oe Highlights Portfolio Daytona _Subsurface Interests Average success rate for wells drilled in Florida between 1995-2008 was 77% CTO owns full or partial interest in approximately 490,000 subsurface acres li conn wen Fame eey weno Mewereeo camem| om on Frersin Asante = C4 hace Net (= Approximately
Slide 26: Other Sources of Revenue and Cash
Highlights Other Sources of Revenue and Cash @ Agriculture (third-party manager) - Approximately 4,000 acres in hay and hunting leases AEM ii - Approximately 6,300 acres in timber production American Forest - YTD Q2 2014: $75k in revenue (vs. $128k in YTD Q2 2013) @ Billboards - i : -95 (1) 21 Billb
Slide 27: Segment Income
Highlights Segment Income* Income Properties Commercial Loan Investments Real Estate Operations Golf Operations Agriculture and Other Income Total Segment Income Total Segment Income Growth *Revenues less direct cost of revenue Cr
Slide 28: Debt Summary
Debt Summary As of June 30, 2014 Liquidity Position $50,000 F : x restrict chiding ed cash $ in 000’s $40,000 $30,000 $20,000 $29,173 $10,000 $ @ Available Credit Capacity - As Amended = Cash Balance (excludes restricted cash) (1) Available Credit Capacity & Weighted Average Term reflect Credit Faci
Slide 29: CTO Advantage
Highlights Portfolio Daytona CTO Advantage fichier eer ee AvgLease Debt+Pref/ Market Implied Cap Rate Top Three Tenants Credit Rating Term (Yrs) Cap CVS NR (1) Bisson NA Walgreens BBB 99 18% (2) Lowe's A- Walgreens BBB 740% cvs BBB+ 114 26% K-Mart CCC+ Bank of America A 6.80% Adesa Texas (KAR Holdin
Slide 30: 2014 Guidance
Ee 2014 Guidance Earnings per share (ona fuly diuted basis) Acquisition of Income-Producing Assets Target Investment Yields Disposition of Non-Core Income Properties Target Disposition Yields Land Transactions (ales vatue) Leverage Target (as% of Total Enterprise Value) (1) As of August 18, 2014 Cr
Slide 31: Frequently Asked Question
. CTO Frequently Asked Question @ What is the impact of rising interest rates on the value of your assets? An increase in interest rates (or rising inflation) would likely have an adverse impact on cap rates with a commensurate impact on the value of our existing income property portfolio; CTO targe
Slide 32: Where does the Stock Market Value our Land?
GIO Highlights Portfolio Daytona Where does the Stock Market Value our Land? Trading Value of Land Shares 5,855,319 Share Price ¢s or veust is, 2014) $56.30 Market Capitalization é: 0: avzus: 13,2014) $329,654,460 Long-Term Debt $76,227,032 Deferred Income Taxes (Net) $32,788,904 Other Liabilities $
Slide 33: Land sales history
a® Highlights Portfolio Daytona Sold 75.60 acres $103k/ac August 2014 < % Sold 3.06 acres 3 $128k/ac February 2014 Sold 2.02 acres == Intracoastal $31 7kfae: Beak December 2013 Sold 3.41 acres s382h/ac December 2013 r Sold 6.23 acres December 2013 = ~ | Sold 16.60 acres =(P:S)_e $37k/ac ———sz June 2
Slide 34: Harvesting Value: Potential Land Transactions
CKO Highlights Portfolio Daytona Harvesting Value: Potential Land Transactions WEST OF 1-95 Potential Transaction 1 Approx. 1,500— 1,700 acres EAST OF 1-95 Potential Transaction 2 Approx. 15-20 acres Potential Transaction 3 Approx. 30-40 acres Potential Transaction 4 Approx. 15 - 20 acres There can
Slide 35: Shareholder Friendly
EO) Highlights Portfolio Daytona Shareholder Friendly ™ Share Buy Back: Bought back 25,836 shares in February and March 2014 for $928k (average price $35.92 per share) Board of Directors reduced to 7 in 2014 from 11 in 2011 Annual election of board Additional disclosure and transparency Improved sha
Slide 36: Housing Rebound
ee Highlights Portfolio Daytona Housing Rebound 5am Annual Permits Issued for Deltona-Daytona Beach-Ormond Beach Area 5,000 4,000 Number of Permits $ s 2,000 1,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTDQ2 2014 Fiscal Year Source: US Census Bureau Single Family Homes on the Rebound CON
Slide 37: Daytona Rising
Daytona Home of NASCAR KOUSC JIMTERNATIONAL SPEEDWAY CORPORATION” DAYTONA RISING = $400mm renovation of Daytona International y Speedway creating — 1,200 direct jobs z ae — 101,000 seating capacity and 53 suites — Projected completion date: January 2016 Ch
Slide 38: Large Commercial Development
Large Commercial Development Nt DAYTONA @ Approved for a 180-acre development including : entertainment, restaurants, retail, © hotel and residential uses ® Several hundred million dollars invested locally @ Anchored by Bass Pro Shops & Cobb Theatres @ Marriott branded hotel announced @ City and Cou
Slide 39: World-Class University
World-Class University EMBRY-RIDDLE Aeronautical University 5 ef F5 4 #1 aeronautical university in the world @ $39mm, 140k SF College of Arts & Sciences building; 220k SF Student Center ™@ Research Park East and West on 77 acres at Daytona International Airport — 50k SF lab space & Diamond Aviation
Slide 40: Major Florida Intersection
Major Florida Intersection 0 YU @ Widening is well underway — $134mm project will provide more capacity along I-4 through to the I-95 interchange — Estimated to be complete in early 2015
Slide 41: Top Institutional Shareholders
\ GIO Top Institutional Shareholders wm WINTERGREEN FUND BLACKROCK TheRoyceFunds CARLSON & CONSOLIDATED FTOMOKA SHAREHOLDER SHARES % Wintergreen Advisers LLC 1,543,075 26.35 BlackRock Institutional 373,727 6.38 Third Avenue Management LLC 258,368 441 Vanguard Group, Inc. 165,907 2.83 Dimensional Fun
Slide 42: Experienced Team
CTO Experienced Team John P. Albright President and CEO Mark E. Patten Senior Vice President and CFO Steven R. Greathouse Vice President — Investments Teresa J. Thornton-Hill Vice President - Corporate Counsel Linda Crisp Vice President - Corporate Secretary Jeff Robbins Director of Real Estate Cr A
Slide 43: Board of Directors
Ere Board of Directors John P. Albright John J. Allen Jeffry B. Fuqua William L. Olivari Howard C. Serkin A. Chester Skinner, IIT Thomas P. Warlow, III Cr President & Chief Executive Officer of the Company President of Allen Land Group, Inc. Chairman of the Board of the Company and President of Amic
Slide 44: Contact Us
C Highlights Portfolio Daytona 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 Annual Report on Form 10-K for the year ended
Slide 45: Appendix
Appendix
Slide 46: Well-Positioned Land
CTO Highlights Well-Positioned Land CONSOLIDATED . TOMOKA 3) 0} Tranada Bridge Trand Ave, 1 u Fe TPCA Bid. 3 = ‘Mason Ave. Bridge Tntl Speedway Blvd] Bdge iE) Beville Rd. Portfolio Atlantic Ocean Daytona @ The Company owns 10,500+ acres: - 1,500 acres east of I-95 - Over 300 acres along I-95 - Land
Slide 47: Well-Positioned Land
Well-Positioned Land 3 ieee ag Atlantic Ocean
Slide 48: Automall Expansion
AUTOMALL SREXPANSION
Slide 49: Distribution Center
PGA INTERNATIONAL ys DS earres cic : 2 SS = > “ nT SDISTRIBUTION CENTER —— : 76VACRES
Slide 50: Florida Hospital Memorial Medical Center
FLORIDA HOSPITAL MEMORIAL MEDICAL CENTER
Slide 51: Well-Positioned Land
Well-Positioned Land UPTO 200t/ACRES UPTO” 80+ ACRES UPTO 80+ ACRES
Consolidated Tomoka Land — Q2 2014 Earnings Presentation on 6ix