Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Consolidated Tomoka Land — Shareholder Meeting (April 2014)
47 slides from Cto Realty Growth's shareholder meeting presentation, Apr 23, 2014
Slide 1: Annual Meeting of Shareholders
7 H CONSOLIDATED @e TOMOKA Annual Meeting of Shareholders April 23, 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?
Highliahts Portfolio Daytona Who is CTO2 ® Consolidated-Tomoka Land Co. is a real estate operating company founded over 100 years ago and public since 1969 @ Total Enterprise Value of over $297mm*) ® Company is primarily focused on transitioning from land assets into income-producing assets Lond > i
Slide 4: CTO A Snapshot
CTO A Snapshot $ in millions (except share data) CTO: Q1 2014/ FY 2013 Share Performance 11.0% / 17.2% RMZ Index: Q1 2014/ FY 2013 Performance 10.0% / 2.6% Equity Market Capitalization (as of Apri 17, 2014) $250.2 Total Debt $47.2 Other Liabilities $41.6 Total Enterprise Value $297.4 Debt less Cash
Slide 5: CTO A Snapshot
CTO A Snapshot Land & Subsurface Income Properties Loan Investments Golf Other 10,500+ acres 490,000+acres Subsurface Rights 36 Single-Tenant Income Properties, 10 States“) 3 SelfDeveloped Flex/Office Properties 22 Billboards Mezz Loan on Upper Upscale Hotel Property Semi-Private — LPGA Internationa
Slide 6: Why Invest?
Highlights Portfolio Why Invest¢ Increase Income Credits & Markets Growth Runway Florida Real Estate Recovery Converting Land to Income Shareholder Friendly Share Repurchase CONSOLIDATED TOMOKA Unlocking Shareholder Value
Slide 7: By the Numbers
Highlights Portfolio Daytona By the Numbers as of December 31, 2013 Total Revenues ($000's) Operating Income ($000's) $6,279 $25,838 $10,000 $30,000 gona : $864 $23,000 $16,233 — $20,000 $- ; $15,000 $10,000 $(6,000) $5,000 $ $(10,000) 2011 2012 2013 2011 2012 2013 Earnings Per Share Book Value Per
Slide 8: Picking up the Pace
Highlights Portfolio Daytona Picking up the Pace as of December 31, 2013 eenine $39.3 INCOME PROPERTY COMMERCIAL LOAN LAND TRANSACTIONS INVESTMENTS INVESTMENTS CONSOLIDATED 2011 92012 #2013 TOMORA
Slide 9: Income Investments — FY 2013
Highlights Income Investments — FY 2013 B Acquisitions @ : i 3 Bank of America Hilton — 9 single-tenant income properties =S Grand Vacations — $39.3mm aggregate purchase price — 2 new states; 3 new credits RITE Bi — Average lease term of 10.7 years Cy LOTS ® Dispositions — 5single-tenant income prop
Slide 10: Income Properties - New States
Highlights Income Properties - 3 New States as of April 22, 2014
Slide 11: Top Tenants by Rent
Top Tenants by Rent CTO as of April 22, 2014 Highlights Portfolio Daytona @ Retailer Type Hilton OFFICE Grand Vacations Bankof Ameri ea a> BANK ‘Harris Teeter GROCERY cr 43% of income from Investment Grade tenants CONSOLIDATED TOMOKA Stores 11.6% 83% 28.2% 154% 9.0% 69% 52% % of GLA % of Rent 20.0%
Slide 12: Diversifying by State
Diversifying by State % based on rent as of April 22, 2014 CO, 4%, MD,3% IL, 1° 0
Slide 13: 2013 Acquisition
2013 Acquisition H Big Lots —Germantown, MD (3-mi Pop. 95,311; 3-mi Median HHI $78,488)
Slide 14: 2013 Acquisition
Portfolio 2013 Acquisition H@ Big Lots —Glendale, AZ (3-mi Pop. 109,428; 3-mi Median HHI $65,584) é § od PU SENG 25 es 5 Ne | 7 ‘ i PH Senin, 6 \\ MACERICH’ ~ \ DAN
Slide 15: Portfolio Repositioning
Highlights : Portfolio Portfolio Repositioning a Four near term lease expirations (less than 5 years remaining) — Exploring lease extensions with existing tenants — Performing competitive analysis to identify retailers looking to enter or expand in the market a Three “dark” Florida retail properties
Slide 16: Improving Portfolio Demos
Highlights Portfolio Daytona Improving Portfolio Demos Portfolio average as of March 31, 2014 sue $76,126 $100,000 a $80,000 $54,856 $58,521 rene Si2.350 $42,997 : $51,230 ane $60,000 $40,000 $40,000 $20,000 $20,000 so $0 2011 2012 2013 2011 2012 2013 3-Mile Median Household Income 3-Mile Average Ho
Slide 17: Deal Sourcing
Highlights Portfolio Deal Sourcing B Sourcing on-market deals through vast broker networks, both national and boutique ® Sourcing off-market deals through developer direct and institutional relationships CHitewrn partners [ZN MID-AMERICA CBRE He Sa 14) HFEF ovum: Hotiday Fenoglio Fowier LE osu Globa
Slide 18: Distribution Facility
Distribution Facility POTENTIAL LAND TRANSACTION @ 76 Acres along I-95 and Dunn Avenue @ 700,000 SF distribution facility @ Capital investment of approximately $80mm (not CTO) ® Creation of 400 - 500 new jobs a CTO owns 75+ acres surrounding the distribution facility a $15mm in incentives from state
Slide 19: Bayberry II
Bayberry || LITIGATION SUCCESS @ Originally sold 596 acres for $6.5mm in 2004 H Developer owed CTO $3.8mm for unreimbursed road costs in 2009 ® In litigation from 2010 to 2013 ® Favorable court ruling for CTO and ultimate foreclosure in January 2014 & Approximate density of 900 lots
Slide 20: Williamson Business Park
H Highlig hts 7 | Williamson Business Park | NEW SELF-DEVELOPED PROPERTY @ Two 15,360 SF buildings & Construction to be complete by the end of April 2014 a 25% leased to Lamar Advertising Actively marketing remaining space al
Slide 21: Commercial Mortgage Investment
Highlights Commercial Mortgage Investment = Purchased performing first mortgage in August 2013 secured by an Upper Upscale Hotel in Atlanta, GA — Face Value of $19.6mm, paid $17.5mm (90 cents on the dollar) — Face Rate of L+450; including discount, current yield was L+526 — Loan was repaid at par in
Slide 22: Golf Operations
Highlights Portfolio Golf Operations ® Strategic Repositioning — New club logo and rebranded golf courses LPGA INTERNATIONAL — New fitness facility opened November 2013 DAYTONA BEACH ® Operating Improvements Ee ed — Membership total: 307 at 12/31/2013 oo cee — Fitness impact — upgrades: 48 golf / 15
Slide 23: Subsurface Interests
| Highlights Portiolio Daytona Subsurface Interests @ Lease with Kerogen Florida Energy Co. - Amended 8-year oil exploration * Payment of $1.0mm for drilling requirements * Payment of $3.3mm for third year lease * Reduced leased acres to 82.000 in Hendry County, FL * Removed from lease 55,000 acres
Slide 24: Additional Sources of Revenue
Highlights Portfolio Daytona Additional Sources of Revenue @ Agriculture - Approximately 3,400 acres in hay and hunting leases — Approximately 6,300 acres in timber production - $276k in 2013 revenue & Billboards - 22 Billboards - $189k in 2013 revenue ® Cash from Impact Fees — $232k in 2013 CUNSOLI
Slide 25: Segment Income
Highlights Segment Income* $ in millions 2011 2012 Income Properties $7.15 $7.79 Commercial Mortgage Loan $0.00 $0.00 Real Estate Operations ($0.25) $2.39 Golf Operations ($1.33) ($0.89) Agriculture and Other ($0.53) ($0.03) Total Segment Income $5.04 $9.26 Total Segment Income Growth 83.7% *Reyenue
Slide 26: Debt Summary
$e fx Highlights Po Debt Summary as of March 31, 2014 100% $sqon0 al 90% 80% 250% s4gc00 0% 16.7% 16.3% 20.0% 60% $30,000 50% 150% - $20,000 40% 10.0% 0%, $10,000 20% SRA 10% y 0% 00% ® Available Credit Capacity = Total Debt/Total Market Cap ® Cash Balance (excludes restricted cash) e Net Debt/Total
Slide 27: CTO Advantage
Highlights CTO Advantage Implied Cap Rate aie Top Three Tenants Credit Rating AVE LEASE elated Multiple Term (Yrs) Market Cap CVS NR CONSOLIDATED N/A N/A WAG BBB 10.0 16% TOMOKA Hilton NR Walgreens BBB ‘A | BCREE REALTY 7.40% 13.70x cvs NR 117 24% K-Mart Coc+ GRAMERCY Bank of America A PROPERTY TRUS
Slide 28: 2014 Guidance
CTO 2014 Guidance $ in millions Earnings per share (ona fatty dtued basis) $1.00 - $1.10 per share Acquisition of Income Producing Assets $50mm- $60mm Target Investment Yields 6% - 9% Disposition of Non-Core Income $8mm - $10mm Properties Target Disposition Yields 7.5% - 9.5% Land Transactions (ales
Slide 29: Where does the Stock Market Value our Land?
CTO Highlights Portfolio Daytona Where does the Stock Market Value our Land? Trading Value of Land Shares 5,840,789 Share Price (as of April 17,2014) $42.84 Market Capitalization $250,219,401 Long-Term Debt $47,227,032 Deferred Income Taxes (Net) $32,428,978 Other Liabilities $9,170,546 Less: Book V
Slide 30: Harvesting Value: Land Transactions
Highlights Portfolio Daytona Harvesting Value: Land Transactions ~~ Intracoastal Sold 3.06 acres $128k/ac February 2014 Sold 2.02 acres $317k/ac December 2013 Sold 3.4 acres $382k/ac December 2013 Sold 6.23 acres $168.5k/ac December 2013 Sold 16.6 acres $37k/ac June 2012 Sold 31.31 Acres at an Avera
Slide 31: Corporate Highlights
CTO Highlights Portfolio Daytona Corporate Highlights @ Share Buy Back — In 2014, through April 17, 2014, we have bought back 25,836 shares for $928k at an average price of $35.92 per share ® Board of Directors reduced to 7 from 11 in 2011 @ 13 Full-time employees ® Annual election of board Sharehol
Slide 32: Housing Rebound
CTO Highlights Portfolio Daytona Housing Rebound 6.000 Annual Permits issued for Deltona-Daytona Beach-Ormond Beach Area 5,068 5,000 4,000 Permits Issued ee [—J Ss 2,000 1,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year Source: US Census Bureau Single Family Homes on the rebound CONSOLIDA
Slide 33: Home of NASCAR
Home of NASCAR CUS CL INTERNATIONAL SPEEDWAY CORPORATION” DAYTONA RISING = $400mm renovation of Daytona International F Speedway creating = — 1,200 direct jobs : ALY | — 101,000 seating capacity and 53 suites — Projected completion date: January 2016
Slide 34: Large Commercial Development
Large Commercial Development iN't DAYTONA @ Approved for a 180-acre development including entertainment, restaurants, retail, 7% hotel and residential uses @ Several hundred million dollars invested locally ® Anchored by Bass Pro Shops & Cobb Theatres INSOLIDATED ie IE POMOKA
Slide 35: World-Class University
World-Class University EMBRY-RIDDLE Aeronautical University A - 3 F #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 fr
Slide 36: Major Florida Intersection
Major Florida Intersection 0 WY @ Widening is in full-throttle mode — $134mm project will provide more capacity along I-4 through to the I-95 interchange — Estimated to be complete in early 2015
Slide 37: Top Institutional Shareholders
CTO Top Institutional Shareholders as of March 20, 2014 a} WINTERGREEN FUND BLACKROCK Vanguard® [> Dimensional CARLSON & ‘TheRoycel‘unds —S ae ist) CUONSOLIDA V OMOURA Brookfield @® Northern Trust STATE STREET. SHAREHOLDER SHARES % Wintergreen Advisers LLC 1,543,075 26.24 Third Avenue Management LLC
Slide 38: 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 39: Board of Directors
CTO Board of Directors John P. Albright John J. Allen Jeffry B. Fuqua William L. Olivari Howard C. Serkin A. Chester Skinner, TI 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 Amick
Slide 40: Contact Us
Highliahts Portfolio Contact Us Consolidated-Tomoka Land Co. 1530 Cornerstone Boulevard Daytona Beach, FL 32117 main: 386.274.2202 fax: 386.274.1223 email: info@ctle.com NYSE MKT: CTO For additional information, please see our Annual Report on Form 10-K for the year ended December 31, 2013, copies o
Slide 41: Appendix
Appendix
Slide 42: Well-Positioned Land
Highlights Portfolio Daytona Well-Positioned Land A Notto scale CUNSOLIDAIED TOMORKA (in 0) Granada Bridge Tiand Ave. 1 zg % i s TPGA BW F Ea £ Mason Ave. Bridge Ge 2ST intl Speedway Blvd. | Bridge ) (a Aan, Beville Rd. Atlantic Ocean ® The Company owns 10,500+ acres: — 1,500 acres east of I-95 - Ov
Slide 43: Well-Positioned Land
| Well-Positioned Land Atlantic Ocean
Slide 44: oe 71,500 eae
oe 71,500 eae AADT 3 7] CORNERSTONE 4/ OFFICE PARK = WILLIAMSON BLVD =~ CONSOLIDATED GE tomoxa
Slide 45: Well-Positioned Land
Well-Positioned Land FLORIDA HOSPITAL MEMORIAL MEDICAL CENTER
Slide 46: Well-Positioned Land
Positioned Land Se Le erase
Slide 47: Well-Positioned Land
Well-Positioned Land Hospital UP TO = 200t/ACRES 80t ACRES UPTO 80+ ACRES
Consolidated Tomoka Land — Shareholder Meeting (April 2014) on 6ix