Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Consolidated Tomoka Land — Shareholder Meeting (April 2019)
32 slides from Cto Realty Growth's shareholder meeting presentation, Apr 24, 2019
Slide 1: 2019 Annual Meeting Presentation
2019 ANNUAL MEETING PRESENTATION
Slide 2: Forward Looking Statements
2 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 statements. Words such as “believ
Slide 3: Company snapshot: income properties, land and key metrics
3 14 INCOME PROPERTIES U.S. STATES ANNUALIZED NOI 2.3M SQUARE FEET LOCATED IN $307M EQUITY MARKET CAP $6.76 2018 EARNINGS PER SHARE $39.72 Q1 2019 BOOK VALUE PER SHARE AS OF APRIL 12, 2019 (UNLESS OTHERWISE NOTED) FIDELITY, ALBUQUERQUE NM 210,067 SF WELLS FARGO, RALEIGH NC 450,393 SF ASPEN DEVELOPME
Slide 4: 2018 Highlights
HARVEST CAPITAL FROM MULTI-TENANT PROPERTIES TOTAL SALES PRICE: LOCATION: GAIN: EXIT CAP RATE: $11.4 million Daytona Beach FL $3.7mm ($0.49/share, net of tax) 7.40% SHARE BUYBACK RETURNING CAPITAL TO SHAREHOLDERS INVESTED CAPITAL: TOTAL SHARES: AVG. PRICE/SHARE: $9.8 million 168,602 $58.35 MONETIZIN
Slide 5: Track Record of Strong Operating Results
5 TRACK RECORD OF STRONG OPERATING RESULTS $30,000 $20,000 $10,000 $- $40,000 2013 2014 2015 2016 2017 2018 $20,995 $30,932 $37,755 $90,000 $86,317 $86,689 $80,000 $70,000 $65,885 $60,000 $50,000 $0.00 $2.00 $4.00 $6.00 $8.00 2013 2014 2015 2016 2017 2018 $0.64 $1.11 $1.44 $2.86 $7.53 $6.76 ANNUAL R
Slide 6: Strong Cash Flow Growth
6 STRONG CASH FLOW GROWTH(1)(I) For the Fiscal Years-Ended Potential 70+% Growth in 2019 ASSUMING NO SIGNIFICANT CHANGE TO OTHER ELEMENTS ($000’s) Actual 2015 Actual 2016 Actual 2017 Actual 2018 Estimate 2019 Income Property NOI(2) $14,724 $17,172 $21,323 $28,207 $37,000 Interest Income from Loan In
Slide 7: CTO Snapshot
7 Percentages based on values derived on NAV worksheet from Q1 2019 Investor Presentation 46 Properties 2.3 million Sq. Ft. Retail and Office NOI $32.3 million (C) Subsurface Interests >450,000 Acres 5,400 Total Acres 3,241 Acres (60%)(A) Under Contract for $93.7 million(A) Avg. Price of $29k/a
Slide 8: Portfolio Highlights
PORTFOLIO HIGHLIGHTS HIGH QUALITY & DIVERSIFIED PORTFOLIO As of April 12, 2019; (% = as a % of Total NOI) ANNUAL NOI(C) ≈$32.3MM SQUARE FEET ≈2.3MM WGTD. AVG. LEASE TERM 8.4 YRS.(1) 14 STATES (1) Weighted average for Single-Tenant portfolio only is 9.4 years (2) Square feet in millions 8 PORTFOLIO M
Slide 9: Fidelity Investments Building and ABQ Studios, Albuquerque
9 25 47 UNIVERSITY BLVD. MESA DEL SOL ALBUQUERQUE CTO owned Fidelity Investments Building ABQ Studios By Lucas Shaw October 8, 2018, 3:15 PM EDT Netflix Inc. is buying its first production studio, the New Mexico facility used to make “The Avengers’’ and “Sicario,’’ to accommodate its growing output
Slide 10: 2018 Acquisition: Single-Tenant Retail, Aspen Colorado
10 TENANTS ACQUIRED FOR $26.5 MILLION(1), CURRENT YIELD 5.00%, LEASE TERM 20 YEARS 2018 ACQUISITION: SINGLE-TENANT RETAIL ASPEN, COLORADO ASPEN CORE BUILDING (1) Net of master tenant contribution of $1.5mm of purchase price
Slide 11: 2018 Acquisition: Single-Tenant Retail, Jacksonville Ground Leases
11 2018 ACQUISITION: SINGLE-TENANT RETAIL ACQUIRED 8 GROUND LEASES FOR $32.3 MILLION, CAP RATE 5.98%, AVG. LEASE TERM 15 YEARS JACKSONVILLE, FLORIDA ADJACENT TO ST. JOHN’S TOWN CENTER
Slide 12: Harvesting Capital from Multi-Tenant
12 HARVESTING CAPITAL FROM MULTI-TENANT Sarasota, FL Whole Foods Centre SOLD Q1 2019 Santa Clara, CA 3600 Peterson Fort Worth, TX Westcliff Shopping Center Winter Park, FL The Grove 245 Riverside Ave Jacksonville, FL Potential Capital to Redeploy into Single-Tenant Net Lease ≈$110mm - $125mm(A) Targ
Slide 13: Recycling Capital into Single-Tenant
Proceeds $24.6mm Gain $6.9mm Sarasota, FL MULTI-TENANT PROPERTY Sales Price/Sq. Ft.: $415 Jacksonville, FL Purchase Price: $32.3 million 8 SINGLE-TENANT RETAIL GROUND LEASES Monetized Multi-Tenant Property Redeployed into Single-Tenant Retail at higher yield Unlevered IRR 13 10.9% RECYCLING CAPITAL
Slide 14: Peer comparison: tenants, lease term, leverage, NAV
BBB 3.4% BBB- 3.3% BBB 3.0% BBB 2.6% B- 5.5% 8.9 47% 63%/37%/0% Discount -5% Stock Price vs NAV(1)(4) Avg. Lease Term (1)(4) Leverage Level (1) (4) Retail/Office/Othe r (4) 14.0 29% 83%/17%/0% Premium 28% B+ 2.4% NR 1.7% NR 2.2% NR 1.6% NR 2.7% 10.2 22% 100%/0%/0% Premium 40% BBB 6.0% AA 3.9% BBB 5.
Slide 15: Momentum Monetizing Land
MOMENTUM MONETIZING LAND 15 (Land Sales in $000’s) Annual Land Sales: 2011 –2018, YTD Q1 2019 & Pipeline(A) as of 4/12/19 (2) (1) (1) ACRES 11.7 99.6 114.0 707.6 1,700.9 2,697.3 2011 – 2018 and YTD Q1 2019 Total Sales $158.0mm Acres Sold 5,358 Total Pipeline(A) : ≈3,241 Acres Proceeds ≈$93.7mm (
Slide 16: Pipeline of Potential Land Sales
PIPELINE OF POTENTIAL LANDSALES(A) SF – Single Family; AR – Age Restricted, MF – Multi-Family; MOB – Medical Office Building Total Acreage West of I-95 ≈4,500 Acres Total Acreage East of I-95 ≈900 Acres Contract/Parcel Acres Contract Amount (rounded) Price Per Acre (rounded) Timing Residential (SF)
Slide 17: Daytona Beach Opportunity Zones
DAYTONA BEACH OPPORTUNITY ZONES APPROXIMATELY 13 SQUARE MILES OF DAYTONA BEACH IN OPPORTUNITY ZONE 17
Slide 18: CTO Land: Downtown Daytona Beach
Halifax River Atlantic Ocean PALMETTO AVE. DAYTONA BEACH BAY ST. INTERNATIONAL SPEEDWAY BLVD. RIDGEWOOD AVE. BEACH ST. MAIN ST. 5.94 ACRES APPROVED OPPORTUNITY ZONE LAND BY THE US DEPARTMENT OF TREASURY 5.94 ACRE PARCEL TOTAL INVESTMENT: $4.8 MILLION 18 CTO LAND: DOWNTOWN DAYTONA BEACH New $30mm HQ
Slide 19: Returning Capital to Shareholders: Share Buybacks
20 RETURNING CAPITAL TO SHAREHOLDERS Cumulative Shares Purchased Cumulative $ Repurchased ($ in millions) Aggregate Avg. Price/Share $54.51 ≈$7.4mm Remaining on $10mm BUYBACK PROGRAM approved in JAN 2019 Share Buybacks(B)(G) % of CTO Shares outstanding 0.25% 0.44% 2.05% 2.60% 2.32% 2.89% Aggregate S
Slide 20: Returning Capital to Shareholders: Dividend
21 RETURNING CAPITAL TO SHAREHOLDERS Annualized Dividend per Share INCREASING DIVIDEND + PAID QUARTERLY Dividends(H) Cumulative % increase in Dividend 50% 75% 100% 200% 350% 575% Note: 2019 based on annualization of Q1 2019 dividend of $0.10 per share CAGR: 38% 900% $0.30 $0.40 2012 Through Q1 2019
Slide 21: 2019 Guidance
22 FY2019 Guidance Earnings Per Share (Basic) (1)(2) $6.75 - $7.50 Incremental EPS (Basic) From Dispositions (2) $2.25 - $2.75 Acquisition of Income-Producing Assets $80mm - $120mm Target Investment Yield (Initial Yield – Unlevered) 5.75% - 7.25% Disposition of Income Properties (2) $50mm - $100mm T
Slide 22: Residential development on land sold by CTO: major homes and multi-family
Timing: Under Construction Timing: Under Contract Timing: Under Contract 1,614 ACRES MAJOR HOME DEVELOPMENTS: MULTI FAMILY DEVELOPMENTS: Luxury Apartments Leasing Spring 2019 NEW UNITS Apartments Under Construction Luxury Apartments Completed 2017 300 NEW UNITS 264 NEW UNITS Luxury Apartments Coming
Slide 23: Residential development on land sold by CTO
24 # 34 Top U.S. Master-Planned Communities of 2018 JOHN BURNS REAL ESTATE CONSULTING #1 55+ Community of 2018 55PLACES.COM 134 New Home Permits in 2019 DAYTONA BEACH NEWS-JOURNAL 2018 Net Sales JOHN BURNS REAL ESTATE CONSULTING 412 3,400 New Homes Zoned CITY OF DAYTONA BEACH 11 New Home Starts Per
Slide 24: Commercial development on land sold by CTO: industrial and office
Completed July 2015 INDUSTRIAL DEVELOPMENT: OFFICE/WAREHOUSE DEVELOPMENT: 630,000SF Completed January 2018 400,000SF 150,000SF Under Construction 70,000SF Completed January 2013 Under Construction Completed January 2017 66,920SF Completed October 2012 25 Source: Publicly available information 100,00
Slide 25: Retail development on land sold by CTO
Completed January 2018 400,000SF Under Construction 140,000SF 350,000SF Completed January 2013 Construction 2020 100,000SF Under Construction 48,000SF Construction in 2019 50,000SF Opened 2015 Still expanding 144 17 ACRES DEALERSHIPS 26 Source: Publicly available information RETAIL DEVELOPMENT ON LA
Slide 26: Retail migration to Tomoka Town Center
RELOCATION FROM U.S. 92 TO LPGA BLVD. & I-95 DAYTONA BEACH 27 RETAIL MIGRATION TO TOMOKA TOWN CENTER
Slide 27: Tanger Outlets at Tomoka Town Center
28 I-95 & LPGA BOULEVARD DAYTONA BEACH TANGER OUTLETS AT TOMOKA TOWN CENTER
Slide 28: Tomoka Town Center shops, spas, and entertainment
TOMOKA TOWN CENTER SHOPS, SPAS, AND ENTERTAINMENT I-95 & LPGA BOULEVARD DAYTONA BEACH RESTAURANTS AND FOOD 29
Slide 29: Board of Directors
BOARD OF DIRECTORS JOHN P. ALBRIGHT President & Chief Executive Officer Archon Capital, a Goldman Sachs Company Morgan Stanley Crescent Real Estate Equities Joined Consolidated Tomoka Board in 2011 HOWARD C. SERKIN (VICE CHAIRMAN) Chairman, Heritage Capital, Inc. Joined Consolidated Tomoka Board in
Slide 30: Executive Management Team
EXECUTIVE MANAGEMENT TEAM TERESA THORNTON-HILL Vice President & Corporate Counsel ICI Homes Cobb Cole Rogers Towers, P.A. Joined Consolidated Tomoka in 2005 E. SCOTT BULLOCK Vice President of Real Estate International Speedway Corporation Crescent Resources (Duke Energy) Pritzker Realty Group Disney
Slide 31: End Notes
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 terms thereof. Certain transactio
Slide 32: 1902 Stock Certificate, Consolidated Naval Stores Company
37 1902 STOCK CERTIFICATE CONSOLIDATED NAVAL STORES COMPANY SHARES $100 EACH This certifies that is the owner of consolidated naval stores company
Consolidated Tomoka Land — Shareholder Meeting (April 2019) on 6ix