Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Consolidated Tomoka Land — Investor Presentation (February 2018)
45 slides from Cto Realty Growth's investor presentation, Feb 8, 2018
Slide 1: Making Waves Year End 2017 Investor Presentation
MAKING WAVES YEAR END 2017 INVESTOR PRESENTATION NYSE American: CTO The Beach Parcel, Daytona Beach
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 February 2, 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) Better Portfolio Balance/Diversification (vs Peers)
Slide 4: Targeted Strategy
TARGETED STRATEGY Doing What We Said We’d Do Since 2011 CONSOLIDATED TOMOKA CONVERT INTO INCOME Grow (primarily single-tenant office & retail), Improve, Enhance & Diversify MONETIZING LAND Using 1031 structure Efficient Overhead – Conservative Balance Sheet Returning Capital to Shareholders – Increa
Slide 5: CTO Snapshot
CTO SNAPSHOT CONSOLIDATED TOMOKA A Lot More Income than Land (1) Percentages based on values derived on NAV worksheet on Slide #31 39 Properties >2.1 million Sq. Ft. Retail and Office NOI $27.0 million (C) Subsurface Interests 460,000 Acres 2 Loans Avg. Yield 9.5% $11.9mm Principal 8,100 Acres
Slide 6: Organic Source of Capital
ORGANIC SOURCE OF CAPITAL Self-Funding Capital Source for Growth CONSOLIDATED TOMOKA $89.1mm +/- Potential Proceeds @ ≈$42.9k per Acre (1)(A) $150.5mm (A) Potential Proceeds NOI MONETIZING 8,100 ACRES OF LAND ≈ 6,025 Acres (A) Under Contract or Term Sheet ≈ 2,075 Acres (Not Under Contract) $0 CONVER
Slide 7: Track Record of Strong Operating Results
’12 – ’17 CAGR 40.7% Total Revenues ($000’s) TRACK RECORD OF STRONG OPERATING RESULTS CONSOLIDATED TOMOKA Annual Results for 2012 – 2017 Operating Income Book Value Per Share Earnings Per Share (1) ($000’s) ’12 – ’17 CAGR 115.6% ’12 – ’17 CAGR 137.3% ’12 – ’17 CAGR 11.0% Consistent Growth in Key Met
Slide 8: Momentum Monetizing Land
MOMENTUM MONETIZING LAND CONSOLIDATED TOMOKA Monetizing Land With Tax Deferred Strategy (Land Sales in $000’s) 2011 –2017 Total Sales $95.7mm Acres Sold 2,650 Dramatic Acceleration Monetizing Land (1) Includes sales proceeds representing reimbursement of infrastructure costs incurred by CTO of $
Slide 9: Pipeline of Potential Land Sales
PIPELINE OF POTENTAL LAND SALES(A) 15 DIFFERENT BUYERS 74% of Remaining Land As of February 2, 2018 SF –Single Family; AR –Age Restricted, MF – Multi-Family RV – Recreational Vehicle Park Total Acreage East of I-95 1,100 Acres Total Acreage West of I-95 7,000 Acres 1 12 2 3 4 8 9 11 10 5 Substan
Slide 10: Land Under Contract: Tomoka Town Center
LAND UNDER CONTRACT(A) CONSOLIDATED TOMOKA Total Acres (Remaining Under Contract) 35 Sales Price $14.4mm Price Per Acre $409,000 Expected Closing Q4 ‘18 Tomoka Town Center Big Box Retail Power Center 10 www.nadg.com/property/Tomoka-town-center
Slide 11: Land Under Contract: Buc-ee's
CONSOLIDATED TOMOKA LAND UNDER CONTRACT(A) Total Acres 35 Sales Price $14.0mm (1) Price Per Acre $400,000 (1) Expected Closing Q2 ‘18 First Site Selected for Buc-ee’s Outside Texas 11 (1) Excludes value of mitigation credits to be provided by CTO for required permitting Expected start of constructio
Slide 12: Land Under Contract: Commercial/Retail
CONSOLIDATED TOMOKA LAND UNDER CONTRACT(A) Total Acres 123 Sales Price $29.3mm Price Per Acre $238,000 Expected Closing ‘18 - ‘19 Commercial/Retail 12 Williamson Crossing
Slide 13: Land Under Contract: National Grocer
CONSOLIDATED TOMOKA LAND UNDER CONTRACT(A) Total Acres 9 Sales Price $2.8mm Price Per Acre $310,000 Expected Closing Q3 ‘18 Commercial/Retail National Grocer 13 Williamson Crossing
Slide 14: Land Under Contract: Distribution/Warehouse
CONSOLIDATED TOMOKA LAND UNDER CONTRACT(A) Total Acres 71 Sales Price $5.0mm Price Per Acre $70,000 Expected Closing ‘19 Distribution/Warehouse 400,000 SF Distribution Center 14
Slide 15: Land Under Contract: Multi-Family
CONSOLIDATED TOMOKA LAND UNDER CONTRACT(A) Total Acres 45 Sales Price $5.2mm Price Per Acre $116,000 Expected Closing Q3 ’18 & ’20 Multi-Family 15
Slide 16: Absorption of Land West of I-95
ABSORPTION OF LAND WEST OF I-95(A) Largest Area of Land Holdings Parcel Use Acres $ Amount Amount per Acre Est. Timing 1 ICI 1,016 $21.0mm $21k ’19 2 Minto 1,614 $26.5mm $16k Q4 ’18 3 Mitigation Bank (1) 2,492 $15.0mm $6k Q2 ’18 4 ICI 146 $1.4mm $10k Q4 ’18 5 Residential 200 $3.3mm $17k Q4 ’18 & ‘20
Slide 17: Mitigation Bank Opportunity
MITIGATION BANK OPPORTUNITY(A) Opportunity: Convert approx. 2,500 acres into wetland mitigation bank in Tiger Bay Basin serving eastern Volusia & southern Flagler Counties. Acres: 2,492 Potential JV Closing: Q2 2018 Est. Initial Credit Sales (1) : Q3 2018 Status: Non-binding term sheet signed for th
Slide 18: Portfolio Highlights
PORTFOLIO HIGHLIGHTS As of February 2, 2018 Annual NOI (C) ≈$27.0mm CONSOLIDATED TOMOKA Transitioning to Single-Tenant Over Time Square Feet >2.1mm 19 12 States Portfolio Mix 12 States 47% 53% Office Retail 67% 33% Single-Tenant Multi-Tenant
Slide 19: Portfolio Highlights
PORTFOLIO HIGHLIGHTS CONSOLIDATED TOMOKA As of February 2, 2018 Total Properties Annualized NOI (1) (C) Total Square Feet (2) Weighted Average Lease Term Investment Grade Tenants Different Industries in Tenant Mix States Single Tenants >10% of NOI (C) 39 $27.0 >2.1 7.6 44% 16 12 1 Stronger Markets S
Slide 20: Property Highlights
CONSOLIDATED TOMOKA PROPERTY HIGHLIGHTS (ranked by NOI) LOCATION: Raleigh, NC SQ. FEET: 450,393 TENANT: Wells Fargo CREDIT: A+ REMAINING TERM: 6.8 % of CTO NOI: 10.3% PURCHASE PRICE: $42.3 million PRICE/Sq. Ft. : $98 CAP RATE: 6.53% LOCATION: Hillsboro, OR SQ. FEET: 211,863 TENANT: Wells Fargo CREDI
Slide 21: Property Highlights
CONSOLIDATED TOMOKA PROPERTY HIGHLIGHTS (ranked by NOI) LOCATION: Jacksonville, FL SQ. FEET: 136,856 TENANT: Multiple CREDIT: NR REMAINING TERM (1): 3.9 % of CTO NOI: 7.3% PURCHASE PRICE: $25.1 million PRICE/Sq. Ft. : $183 CAP RATE: 7.76% Diversity & Balance Credit & Value LOCATION: Sarasota, FL SQ.
Slide 22: Property Highlights
CONSOLIDATED TOMOKA PROPERTY HIGHLIGHTS (ranked by NOI) LOCATION: Fort Worth, TX SQ. FEET: 136,185 TENANT: Albertsons & others CREDIT: B REMAINING TERM (1) : 4.4 % of CTO NOI: 3.4% PURCHASE PRICE: $15.3 million PRICE/Sq. Ft. : $112 CAP RATE: 6.02% Diversity & Balance Credit & Value LOCATION: Brandon
Slide 23: Opportunistic Investments
OPPORTUNISTIC INVESTMENTS CONSOLIDATED TOMOKA Entitled for >1 million sq. ft. vertical development 6.04 acres Daytona Beach The Beach Parcel 2 Single-Tenant Net Lease Properties (restaurants) Total Investment at Completion: $17.7 million (H) Est. investment yield (for 2 restaurants properties): 7% -
Slide 24: Opportunistic Investments: The Grove at Winter Park
OPPORTUNISTIC INVESTMENTS CONSOLIDATED TOMOKA Finding Value Creating Organic Returns Organic Income Growth for 2018 ≈112,000 sq. ft. situated on 14.35 acres Anchor Opened February 2017 Outparcel Total est. investment: $12.5 million Current 63.3% Leased (1) Near Term target 72% Cash flow positive in
Slide 25: Income Properties in Top Markets
Income Properties in Top 25 Markets Investment – Indicates ranking of acquisition capital into respective market Development – Indicates ranking of development capital into respective market Source: ‘2018 Emerging Trends in Real Estate’ publication by Urban Land Institute and PWC TARGET MARKET MAP S
Slide 26: Acquisition Methodology
ACQUISITION METHODOLOGY CONSOLIDATED TOMOKA INVESTMENT TARGET Real Estate Attributes Demo – graphics Land Value Market Comps Alternative Use Parking Access Visibility Traffic Counts Location Property Level Sales Credit- Worthiness Tenant Attributes Store Comparisons Rent Coverage Tenant’s Market Pre
Slide 27: Top Tenants Versus Peers
TOP TENANTS VERSUS PEERS CONSOLIDATED TOMOKA Better Real Estate Better Credit BB- 5.3% B- 4.3% B+ 3.8% B+ 3.5% NR 3.4% BBB 6.7% BBB 5.3% BBB 4.0% B+ 4.1% BB+ 3.6% B+ 2.4% NR 2.1% NR 2.0% NR 1.9% NR 3.1% A 22.1% BB+ 5.9% A+ 4.5% A- 3.4% B+ 3.2% BBB 3.3% BB+ 3.3% BBB 3.1% BBB 2.8% B- 7.0% 7.6 9.6 10.5
Slide 28: How CTO's Portfolio Stacks Up
HOW CTO’S PORTFOLIO STACKS UP Three Mile Population(1) Implied Cap Rate(2) 3-Mile Median Household Income(1) CONSOLIDATED TOMOKA 3-Mile Avg. Household Income(1) Stronger Demographics Higher Density Source of Peer Demographic Info: B. Riley FBR CTO info as of February 2, 2018 Peer cap rates as of Feb
Slide 29: CTO's Shareholder Return vs Peers
CTO’S SHAREHOLDER RETURN VS PEERS CONSOLIDATED TOMOKA Outperforming Peers 30 18.6% 1.1% 0.9% -8.3% -12.3% -12.7% -17.1% CTO ADC STOR NNN VER O LXP Source: Bloomberg 1 Year Return (based on hypothetical investment of $100) Vs. Triple-Net REIT Peer Group (2/6/2017– 2/6/2018) -17.8% EPR
Slide 30: NAV Worksheet
NAV WORKSHEET (A)(F)(I) CONSOLIDATED TOMOKA Indicative of Meaningful Discount in our Stock Price 31 Cap Rate on NOI (C) Contract and non-binding term sheet amounts As of February 2, 2018 As of December 31, 2017 Excludes intangible lease liabilities (5) Excludes NOI for Grove at Winter Park Highlight
Slide 31: Liquidity & Leverage
LIQUIDITY & LEVERAGE CONSOLIDATED TOMOKA 65% of Debt at Fixed rate ≈73% Unsecured Weighted Average Rate <4.00% Average Duration 5.1 years As of December 31, 2017 unless otherwise noted Debt Schedule ($ in millions) Liquidity Position ($ in 000’s) Total Commitment of Credit Facility = $130 million Am
Slide 32: Returning Capital to Shareholders
Returning Capital to Shareholders (B)(D) CONSOLIDATED TOMOKA Cumulative Shares Purchased Cumulative From 2012 Through 2017 Buybacks per Year $ Amount # of Shares 2012 $453,654 14,634 2013 $- - 2014 $927,913 25,836 2015 $6,484,844 119,403 2016 $7,431,896 151,453 2017 $7,209,454 135,329 Total $22,507,
Slide 33: 2018 Guidance
2018 Guidance CONSOLIDATED TOMOKA Sustain Momentum Recycling Capital Growing NAV 34 2018 Guidance Earnings Per Share (Basic) (1) (2) $7.25 - $8.25 Acquisition of Income-Producing Assets $80mm - $120mm Target Investment Yield (Initial Yield – Unlevered) 5.75% - 7.25% Disposition of Income Properties
Slide 34: Income Property Portfolio: Single-Tenant
CONSOLIDATED TOMOKA (1) Two properties Income Property Portfolio (C) APPENDIX 35 Single-Tenant 100% Occupied 100% Leased As of February 2, 2018 (1) Tenant/Building Location Property Type Rentable Square Feet Remaining Lease Term % of NOI Wells Fargo Hillsboro, OR Office 211,863 8.0 11.8% Wells Fargo
Slide 35: Income Property Portfolio: Multi-Tenant
CONSOLIDATED TOMOKA Income Property Portfolio (1) Two properties APPENDIX 36 Multi-Tenant (C) As of February 2, 2018 (1) Tenant/Building Location Property Type Rentable Square Feet Remaining Lease Term % of NOI % Occupancy 3600 Peterson Santa Clara, CA Office 75,841 4.2 8.9% 100.0% 245 Riverside Ave
Slide 36: Appendix: The Map
APPENDIX CONSOLIDATED TOMOKA The Map 37
Slide 37: Intersection of Economic Development
APPENDIX CONSOLIDATED TOMOKA Intersection of Economic Development Intersection of I-95 and LPGA Boulevard Under Construction Under Construction Under Construction Under Construction 38
Slide 38: Active Adult Community Development
APPENDIX CONSOLIDATED TOMOKA 300 Home Deliveries per Year Starting Q2 2018 Active Adult Community – 1st Phase: 3,400 homes Development in Progress on Land Sold by CTO 39
Slide 39: North American Tomoka Town Center
APPENDIX CONSOLIDATED TOMOKA North American – Tomoka Town Center ≈400,000 Square Foot Retail Power Center Development in Progress on Land Sold by CTO 40
Slide 40: Tomoka Pointe Luxury Rental Community
APPENDIX CONSOLIDATED TOMOKA At Tomoka Town Center 276-Unit Luxury Rental Community Development in Progress on Land Sold by CTO 41 Projected development costs $39 million Final Site Approval expected Feb ’18 Construction start date Spring ‘18 Opening expected Q2 2019 Tomoka Pointe
Slide 41: Distribution Center Development
APPENDIX CONSOLIDATED TOMOKA Opening Q1 2018 ≈400,000 Square Foot Distribution Center Development in Progress on Land Sold by CTO 42
Slide 42: Single-Family Residential Community
APPENDIX CONSOLIDATED TOMOKA Homes Deliveries Starting in 2018 Single-Family Residential Community – 1,000+ homes Development in Progress on Land Sold by CTO 43
Slide 43: Honda Dealership Adjacent to CarMax
APPENDIX CONSOLIDATED TOMOKA Honda Dealership Adjacent to CarMax Development in Progress on Land Sold by CTO 44
Slide 44: End Notes
END NOTES CONSOLIDATED TOMOKA End note references utilized in this presentation Certain transactions require the Company to incur the cost to provide mitigation credits necessary for applicable regulatory permits for the buyer. There can be no assurances regarding the value ultimately received for t
Slide 45: Making Waves: Contact Us
MAKING WAVES Consolidated-Tomoka Land Co. 1140 N. Williamson Boulevard, Suite 140 Daytona Beach, FL 32114 P: 386.274.2202 Info@ctlc.com www.ctlc.com NYSE American: CTO Investor Relations: Mark E. Patten P: 386.944.5643 mpatten@ctlc.com Contact Us For additional information, please see our most recen
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