Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Consolidated Tomoka Land — Investor Presentation (October 2018)
40 slides from Cto Realty Growth's investor presentation, Oct 17, 2018
Slide 1: Building on Our Success – 3rd Quarter 2018 Investor Presentation
BUILDING ON OUR SUCCESS NYSE American: CTO 3rd QUARTER 2018 INVESTOR PRESENTATION 8 GROUND LEASES Adjacent to St. Johns Town Center in Jacksonville, FL
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 October 10, 2018 (unless otherwise noted) Discount to NAV Organic Capital Source Portfolio Quality Trading at Meaningful Discount to NAV Land Sales Provide Organic Source of Capital Faster Income Growth (vs Peers) Focusing Portfolio Toward Net Lease Sector Strong Fr
Slide 4: Track Record of Strong Operating Results
’13 – ’17 CAGR 37% ’13 – ’17 CAGR 59% ’13 – ’17 CAGR 53% ’13 – ’17 CAGR 9% ($000’s) TRACK RECORD OF STRONG OPERATING RESULTS CONSOLIDATED TOMOKA Annual Results for 2013 – 2017 and YTD Q3 2018 ($000’s) Consistent Growth in Key Metrics (1) Basic Earnings per Share (2) As of period end 4 Total Revenues
Slide 5: Cash Flow Growth
CASH FLOW GROWTH(1)(I) CONSOLIDATED TOMOKA Significant Free Cash Flow Growth – Project >$2/Share For the Fiscal Years-Ended 5 2015 2016 2017 2018 (I) Income Property NOI(2) $14,724 $17,172 $21,323 ≈$29,000 Interest Income from Loan Investments 2,691 2,588 2,053 Cash Flows from Golf Operations(3) (72
Slide 6: CTO Snapshot
CTO SNAPSHOT CONSOLIDATED TOMOKA A Lot More Income than Land Percentages based on values derived on NAV worksheet on Slide #8 45 Properties ≈2.3 million Sq. Ft. Retail and Office NOI $33.1 million (C) Subsurface Interests 460,000 Acres 5,500 Total Acres 3,503 Acres (64%)(A) Under Contract for $
Slide 7: Transition to Single-Tenant Focus
TRANSITION TO SINGLE-TENANT FOCUS CONSOLIDATED TOMOKA Recycle Capital – Focus on Single-Tenant Net-Lease 7 YE 2019 Goal Single-Tenant Multi-Tenant Land Under Contract Remaining Land Other Assets Assets to Monetize(A) Multi-Tenant 245 Riverside Westcliff 3600 Peterson Whole Foods Centre The Grove Oth
Slide 8: NAV Worksheet
NAV WORKSHEET (A)(F) CONSOLIDATED TOMOKA Indicative of Meaningful Discount in our Stock Price 8 Cap Rate on NOI (C) Contract amounts As of October 10, 2018 As of September 30, 2018 Excludes intangible lease liabilities As of October 10, 2018 (unless otherwise noted) Highlighted Components of NAV Bas
Slide 9: Momentum Monetizing Land
MOMENTUM MONETIZING LAND CONSOLIDATED TOMOKA Monetizing Land With Tax Deferred Strategy (Land Sales in $000’s) Dramatic Acceleration Monetizing Land Annual Land Sales: 2011 – YTD at 10.10.2018 & Pipeline(A) as of 10/10/18 9 (2) (1) (1) (1) Includes sales proceeds representing reimbursement of infras
Slide 10: Pipeline of Potential Land Sales
PIPELINE OF POTENTAL LAND SALES(A) As of October 10, 2018 SF –Single Family; AR –Age Restricted, MF – Multi-Family MOB – Medical Office Bldg. Substantial Pipeline of Organic Capital for Growth to Income CONSOLIDATED TOMOKA 10 Total Acreage East of I- 95 1,000 Acres Total Acreage West of I-95 4,5
Slide 11: Income Property Investments
INCOME PROPERTY INVESTMENTS (1) Converting into Income ($000’s) Annual Acquisitions for 2011 – 2017, YTD 10.10.2018 Diversified Markets Higher Quality Properties Net of master tenant purchase contribution of $1.5 million for acquisition of income property in Aspen, CO in Q1 2018 11 2011 – YTD 10.10.
Slide 12: Acquisition Highlights – Albuquerque, New Mexico
ACQUISITION HIGHLIGHTS CONSOLIDATED TOMOKA 10-Year Lease – Annual Rent Escalations 12 Albuquerque, New Mexico $44.0 Million Investment Single Tenant Office 10 yrs. remaining lease term 210,067 Square Feet 25.34 Acres Annual Rent Escalations Build-to-Suit built in 2009 Investment basis $209/Sq. Ft Ne
Slide 13: Acquisition Highlights – Neighbors with Netflix
ACQUISITION HIGHLIGHTS CONSOLIDATED TOMOKA Albuquerque – Neighbors with Netflix 13 Albuquerque, New Mexico ,ALREADY A STUDIO IN ALL BUT NAME, IS BUYING A STUDIO By Lucas Shaw October 8, 2018, 3:15 PM EDT While the Los Gatos, California- based company will spend upward of $8 billion on movies and TV
Slide 14: Acquisition Highlights – Jacksonville Ground Leases
ACQUISITION HIGHLIGHTS CONSOLIDATED TOMOKA Weighted Avg. 15-Year Leases – Rent Escalations 14 Jacksonville, Florida $32.3 Million Investment 8 Ground Leases – Improved with Single Tenant Retail 14.8 yrs. Weighted Average remaining Lease Term ≈44,000 Square Feet 10.45 Acres Rent Escalations – general
Slide 15: Update on The Grove
Coming to Market in Q4 2018(J) UPDATE ON THE GROVE CONSOLIDATED TOMOKA Unlocking Value – Creating Organic Returns 15 ≈112,000 sq. ft. situated on 14.35 acres 72% Leased (1) (1) As of October 10, 2018 Improvements(J) Initial Investment $3.1M $10.4M (H) WaWa scheduled to open in December 2018 Total Ba
Slide 16: Monetizing Multi-Tenant
MONETIZING MULTI-TENANT CONSOLIDATED TOMOKA Refining Focus to Single-Tenant Net Lease 16 3600 Peterson 245 Riverside Ave Westcliff Shopping Center Potential Capital to Redeploy into Single-Tenant Net Lease ≈$110mm - $125mm(A) Whole Foods Centre The Grove (1) As of October 10, 2018 Multi-Tenant Prope
Slide 17: Portfolio Highlights – Stronger Markets, Stronger Credits
PORTFOLIO HIGHLIGHTS CONSOLIDATED TOMOKA Stronger Markets – Stronger Credits 17 (% = as a % of Total NOI) As of October 10, 2018 Total Square Feet (2) Investment Grade Tenants (H) ≈2.3 33% States 14 Total Properties Annualized NOI (1) (C) 45 $33.1 Single Tenants >10% of NOI (C) 2 Geographic Diversit
Slide 18: Portfolio Highlights – Transitioning to Single-Tenant
PORTFOLIO HIGHLIGHTS As of October 10, 2018 CONSOLIDATED TOMOKA Transitioning to Single-Tenant Over Time 18 Portfolio Mix Annual NOI (C) ≈$33.1mm Wgtd. Avg. Lease Term 8.5 yrs. (1) 14 States Square Feet ≈2.3mm High Quality & Diversified Portfolio (% = as a % of Total NOI) (1) Weighted average for Si
Slide 19: Top Tenants Versus Peers
TOP TENANTS VERSUS PEERS CONSOLIDATED TOMOKA Better Real Estate Better Credit Better Value 19 BBB 3.7% BBB- 3.3% BBB 3.0% BBB 2.7% B- 6.3% 9.1 50% 64%/36%/0% Discount -18% Stock Price vs NAV(1)(4) Avg. Lease Term (1)(4) Leverage Level (1) (4) Retail/Office/Other (4) 14.0 32% 84%/16%/0% Premium 9% B+
Slide 20: How CTO's Portfolio Stacks Up
HOW CTO’S PORTFOLIO STACKS UP CONSOLIDATED TOMOKA Stronger Demographics = Better Markets & Long-Term Real Estate 20 Three Mile Population(1)(3) Implied Cap Rate(2) 3-Mile Median Household Income(1)(3) 3-Mile Avg. Household Income(1)(3) CTO info as of October 2018 Peer implied cap rates info from Jan
Slide 21: Liquidity & Leverage
LIQUIDITY & LEVERAGE CONSOLIDATED TOMOKA 52% of Debt at Fixed rate ≈78% Unsecured Weighted Average Rate =3.97% Average Duration 4.0 years As of October 10, 2018 Debt Schedule (E) ($ in millions) Liquidity Position ($ in 000’s) Total Commitment of Credit Facility = $150 million Amount Outstanding at
Slide 22: Returning Capital to Shareholders
RETURNING CAPITAL to SHAREHOLDERS (B)(D) CONSOLIDATED TOMOKA Cumulative From 2012 Through 10/10/18 Disciplined Approach to Returning Capital 22 Cumulative Shares Purchased Cumulative $ Repurchased ($ in millions) Aggregate Avg. Price/Share $51.91 Annualized Dividend per Share Consistent Approach – A
Slide 23: YTD '18 Actuals vs FY '18 Guidance
YTD ‘18 ACTUALS vs FY ‘18 GUIDANCE CONSOLIDATED TOMOKA Achieving Acquisition Guidance Recycling Capital 23 YTD 2018 Guidance YTD Q3 2018 Actuals Earnings Per Share (Basic) (1) (2) $7.25 - $8.25 $4.11 Acquisition of Income-Producing Assets $80mm - $120mm $102.8mm Target Investment Yield (Initial Yiel
Slide 24: Appendix
CONSOLIDATED TOMOKA 24 APPENDIX
Slide 25: Single-Tenant Portfolio
CONSOLIDATED TOMOKA (1) Two properties Single-Tenant Portfolio (C) APPENDIX 25 100% Leased As of October 10, 2018 (1) (C) Tenant/Building S&P Credit Rating Location Property Type Rentable Square Feet Remaining Lease Term % of NOI Fidelity N/A Albuquerque, NM Office 210,067 10.2 10.4% Wells Fargo A+
Slide 26: Single-Tenant Portfolio (continued)
CONSOLIDATED TOMOKA Single-Tenant Portfolio (C) APPENDIX 26 100% Leased As of October 10, 2018 (C) Tenant/Building S&P Credit Rating Location Property Type Rentable Square Feet Remaining Lease Term % of NOI Big Lots BBB Germantown, MD Retail 25,589 5.3 1.1% Staples B- Sarasota, FL Retail 18,120 3.3
Slide 27: Multi-Tenant Portfolio
CONSOLIDATED TOMOKA Multi-Tenant Portfolio APPENDIX 27 (C) As of October 10, 2018 (C) Tenant/Building Class Location Property Type Rentable Square Feet Remaining Lease Term % of NOI 3600 Peterson NR Santa Clara, CA Office 75,841 3.5 7.3% 245 Riverside Ave N/A Jacksonville, FL Office 136,856 3.5 6.0%
Slide 28: Top Income Property – Albuquerque, New Mexico
CONSOLIDATED TOMOKA Top 10 Income Property APPENDIX 28 As of October 10, 2018 Albuquerque, New Mexico Asset Type: Single-Tenant Office Tenant: Fidelity Investments S&P Rating: NR % of Portfolio NOI: 10.4% Square Feet 210,067 Acres: 25.34 Remaining Term: 10.12 Year Built: 2009 Purchase Date: Oct-18 O
Slide 29: Top Income Property – Hillsboro, Oregon
CONSOLIDATED TOMOKA Top 10 Income Property APPENDIX 29 As of October 10, 2018 Hillsboro, Oregon Wells Fargo Hillsboro Asset Type: Single-Tenant Office Tenant: Wells Fargo Bank, N.A. S&P Rating: A+ % of Portfolio NOI: 9.7% Square Feet 211,863 Acres: 18.92 Remaining Term: 7.21 Year Built: 1978/2009 Pu
Slide 30: Top Income Property – Raleigh, North Carolina
CONSOLIDATED TOMOKA Top 10 Income Property APPENDIX 30 As of October 10, 2018 Raleigh, North Carolina Wells Fargo Raleigh Asset Type: Single-Tenant Office Tenant: Wells Fargo Bank, N.A. S&P Rating: A+ % of Portfolio NOI: 8.5% Square Feet 450,393 Acres: 40.56 Remaining Term: 5.95 Year Built: 1996/199
Slide 31: Top Income Property – Santa Clara, California
CONSOLIDATED TOMOKA Top 10 Income Property APPENDIX 31 As of October 10, 2018 Santa Clara, California 3600 Peterson Asset Type: Multi-Tenant Office Tenants: Adesto Technologies Corp. Centrify Corp. S&P Rating: N/R % of Portfolio NOI: 7.3% Square Feet 75,841 Acres: 5.42 Remaining Term: 3.50 Year Buil
Slide 32: Top Income Property – Jacksonville, Florida
CONSOLIDATED TOMOKA Top 10 Income Property APPENDIX 32 As of October 10, 2018 Jacksonville, Florida Asset Type: Mutli-Tenant Office Major Tenants: Raymond James Northwestern Mutual S&P Rating: N/R % of Portfolio NOI: 6.0% Square Feet 136,856 Acres: 3.40 Remaining Term: 3.50 Year Built: 2003 Purchase
Slide 33: Top Income Property – Orlando, Florida
CONSOLIDATED TOMOKA Top 10 Income Property APPENDIX 33 As of October 10, 2018 Orlando, Florida Asset Type: Single-Tenant Office Tenant: Hilton Grand Vacations S&P Rating: BB+ % of Portfolio NOI: 4.8% Square Feet 133,914 Acres: 14.84 Remaining Term: 8.12 Year Built: 1988/2000 Purchase Date: Jan-13 Oc
Slide 34: Top Income Property – Aspen, Colorado
CONSOLIDATED TOMOKA Top 10 Income Property APPENDIX 34 As of October 10, 2018 Aspen, Colorado Aspen Core Asset Type: Single-Tenant Retail Tenant: A.G. Hill S&P Rating: N/R % of Portfolio NOI: 3.7% Square Feet 19,596 Acres: Condo Interest Remaining Term: 19.29 Year Built: 2015 Purchase Date: Feb-18 O
Slide 35: Top Income Property – Sarasota, Florida
CONSOLIDATED TOMOKA Top 10 Income Property APPENDIX 35 As of October 10, 2018 Sarasota, Florida Asset Type: Mutli-Tenant Retail Major Tenants: Whole Foods Market Starbucks S&P Rating: A+ % of Portfolio NOI: 3.7% Square Feet 59,341 Acres: 3.94 Remaining Term: 4.88 Year Built: 2004 Purchase Date: Oct-
Slide 36: Top Income Property – Katy, Texas
CONSOLIDATED TOMOKA Top 10 Income Property APPENDIX 36 As of October 10, 2018 Katy, Texas Asset Type: Single-Tenant Retail Tenant: Lowe's S&P Rating: A- % of Portfolio NOI: 2.8% Square Feet 131,644 Acres: 15.48 Remaining Term: 8.29 Year Built: 1997 Purchase Date: Apr-14 Occupancy: 100% Demographics
Slide 37: Top Income Property – Fort Worth, Texas
CONSOLIDATED TOMOKA Top 10 Income Property APPENDIX 37 As of October 10, 2018 Fort Worth, Texas Asset Type: Multi-Tenant Retail Tenant: Albertsons S&P Rating: B % of Portfolio NOI: 2.8% Square Feet 136,185 Acres: 10.30 Remaining Term: 3.81 Year Built: 1955 Purchase Date: Mar-17 Occupancy: 92% Demogr
Slide 38: Appendix – The Map
APPENDIX CONSOLIDATED TOMOKA The Map 38
Slide 39: End Notes
END NOTES CONSOLIDATED TOMOKA 39 End Notes references utilized in this presentation There can be no assurances regarding the value ultimately received for the Company’s assets, or in the case of the transactions under contract, the likelihood that such transactions will close or the timing or final
Slide 40: Contact Us
NYSE American: CTO 8 GROUND LEASES Adjacent to St. Johns Town Center in Jacksonville, FL BUILDING ON OUR SUCCESS 3rd QUARTER 2018 INVESTOR PRESENTATION Contact Us Investor Relations: Mark E. Patten P: 386.944.5643 mpatten@ctlc.com Consolidated-Tomoka Land Co. 1140 N. Williamson Boulevard, Suite 140
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