Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Consolidated Tomoka Land — Investor Presentation (October 2019)
28 slides from Cto Realty Growth's investor presentation, Oct 24, 2019
Slide 1: Transforming More Than Our Name: Strategy Presentation
TRANSFORMING MORE THAN OUR NAME Strategy Presentation - October 23, 2019
Slide 2: Forward-looking statements disclaimer
This presentation has been prepared by Consolidated-Tomoka Land Co. (“we,” “us,” “our,” “CTO” or the “Company”) solely for informational purposes. This presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities. Certain statements contained in this presenta
Slide 3: Two Major Strategic Initiatives: Unlocking and Creating Value
Consolidated-Tomoka Land Co. Announces Two Major Strategic Initiatives · Captures REIT Market Opportunity · Ability to Grow · Sponsorship of Alpine Property Income Trust, Inc. (NYSE: PINE)(A), an externally managed, single-tenant net lease REIT. OP Units valued at $24.5 million based on a preliminar
Slide 4: Transformation into a Total Return Real Estate Company and Pure-Play REIT
THE TRANSFORMATION INTO A MORE OPPORTUNISTIC, TOTAL RETURN REAL ESTATE COMPANY (CTO) AND THE CREATION OF A PURE-PLAY, SINGLE-TENANT NET LEASE REIT (PINE) Loan Investments $18mm Other(5) $22mm Multi-Tenant(4) $93mm(D) (2) (1) (TODAY) Single-Tenant Net Lease $250mm (D) Cash & 1031 Restricted Cash $231
Slide 5: Total Return Vehicle (CTO) and Yield-Oriented Vehicle (PINE)
TOTAL RETURN VEHICLE FOCUSED ON MAXIMIZING NAV YIELD-ORIENTED VEHICLE FOCUSED EXCLUSIVELY ON SINGLE-TENANT NET LEASE INVESTMENTS properties with longer term lease durations tenant net lease properties, subject to certain additional single-tenant net lease properties from CTO for acquisitions of sing
Slide 6: CTO Income Portfolio – Post Alpine
MD AZ CA 2% 2% 1% WA NY 2% 2% CO 6% FL 25% VA 12% TX 17% NM 15% NC 16% 32 $21.9mm 27% ≈1.5mm 53% 43% Investment Grade Tenants(H) 52% 73% States 11 4% Retail Single-Tenant Multi-Tenant Office Hotel Note: These percentages are prior to re-investing proceeds from sale to Alpine and Land JV For Notes (G
Slide 7: How Will Growth Strategy Be Differentiated?
A REAL ESTATE INVESTMENT COMPANY FOCUSED ON VALUE-ADD AND OPPORTUNISTIC INVESTMENTS GROW Multi-Tenant Opportunistic Acquisitions GROW Manage and Retain Ownership in Alpine REIT (PINE) GROW Loan Investment Portfolio CTO JV Interests, Mineral Rights and Other Retained Net Lease Portfolio OPTIMIZE OPTI
Slide 8: Why Not Spin-Off or Convert to a REIT Now
Recently enacted IRS rules prohibit the spin-off of a REIT or a spin-off of C-Corp with the remaining company converting to a REIT within 10 years These changes eliminate many alternatives to the current strategy Lack of “pure-play” category for existing investments Continuing high level of
Slide 9: Multi-Tenant and Loan Investment Strategy
▪ Multi-tenant Strategy: CTO will pursue multi-tenant office, retail and/or mixed-use properties, located in top MSAs within the United States, that generate current yield while possessing future potential yield enhancement though vacancy lease-up, redevelopment or rolling in-place rents to higher m
Slide 10: The Carpenter Hotel, Austin, TX
99 YEAR GROUND LEASE | ACQUIRED JULY 2019 INVESTMENT THESIS – GROWTH MARKET ▪ Owner faced near-term maturity on construction loan for newly developed 93-key hotel CTO originated a 99-year ground lease and a short-term bridge loan on the leasehold improvements CTO created a secure ground lease with r
Slide 11: Aspen Core Building
SINGLE-TENANT RETAIL | ACQUIRED FEBRUARY 2018 INVESTMENT THESIS – DEVELOPMENT OPTIONALITY ▪ CTO purchased the first and second floor vacant condominium interests and master-leased to family office with experience in high-street retail property Located in downtown Aspen which has high barriers to ent
Slide 12: Wells Fargo, Raleigh, NC
SINGLE-TENANT OFFICE | ACQUIRED NOVEMBER 2015 INVESTMENT THESIS – MASTER LEASE ▪ The Wells Fargo Corporate Center is a 450,000 square foot office property leased 100% to Wells Fargo at a rent level of approximately 50% of current market rates Additionally, the property sits on approximately 40 acres
Slide 13: 245 Riverside, Jacksonville, FL
MULTI-TENANT OFFICE | ACQUIRED JULY 2015 INVESTMENT THESIS Purchased a top, class A office building in Jacksonville at 7.6% cap rate and below replacement cost Brooklyn Riverside Apartments 220 Riverside Apartments OPERATIONAL ACTIONS ▪ ▪ Changed management and leasing companies Invested in deferred
Slide 14: Westcliff, Fort Worth, TX
MULTI-TENANT RETAIL | ACQUIRED MARCH 2017 INVESTMENT THESIS – REPOSITION OPPORTUNITY Downtown ▪ Urban in-fill shopping center covering over 10 acres CTO actively remerchandising tenant line-up while rolling current rents to market rates Future redevelopment opportunity in supply constrained micro-ma
Slide 15: Beach Restaurants, Daytona Beach
SINGLE-TENANT RETAIL / ENTITLED LAND | ACQUIRED JANUARY 2018 INVESTMENT THESIS – CREATING INCOME ▪ CTO purchased a six-acre vacant beach front parcel in Daytona Beach, FL for $11 million from a lender that had foreclosed on a $25 million loan CTO, using its local development expertise, entitled the
Slide 16: Downtown Daytona Development Site
POTENTIAL LARGE-SCALE MIXED-USE DEVELOPMENT INVESTMENT THESIS – OPPORTUNITY ZONE INVESTMENT ▪ CTO assembled an approximately seven-acre, vacant site in downtown Daytona Beach near the new Brown & Brown office building that is creating over 600 jobs. CTO is in the process of entitling the parcel for
Slide 17: Component of Value: Loan Investments
Existing Portfolio – October 2019 LPGA International Golf Course ORLANDO LAND PARCEL ➢ Loan Amount: $8.25mm ➢ Loan Amount: $8.0mm ➢ Loan Amount: $2.1mm Loan Type: Leasehold First Mortgage Loan - Secured Security: 93-key Boutique Hotel Location: Austin, TX Rate: 11.5% Fixed Fees (Originatio
Slide 18: CTO Outperformance
Range: 8/31/2011-10/21/2019 Annual Return Russell 2000 (RTY) 113.3% 138.8% 11.0% 180.0% 160.0% CTO RTY 140.0% RMZ 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% (20.0%) CTO RMZ Russell 2000 18 Source: CapitallQ RMZ REIT Index (RMZ)68.4%133.2%10.5% SecurityPrice ChangeTotal ReturnCompounded Consolidated-
Slide 19: Management Team
15 TOTAL EMPLOYEES 19 w/CTO Since 2012 STEVEN R. GREATHOUSE SVP of Investments ▪N3 Real Estate ▪Morgan Stanley ▪Crescent Real Estate Equities w/CTO Since 2013 LISA M. VORAKOUN VP and Controller ▪James Moore & Co. w/CTO Since 2014 DANIEL E. SMITH SVP, General Counsel, Corp. Secretary ▪Goldman Sa
Slide 20: Board of Directors
20 GEORGE R. BROKAW Managing Partner, Trail Creek Partners LP Joined Board in 2018 CASEY R. WOLD Founder, Managing Partner & Chief Executive Officer, Vanderbilt Office Properties Joined Board in 2017 HOWARD C. SERKIN (VICE CHAIRMAN) Chairman, Heritage Capital, Inc. Joined Board in 2011 LAURA M. FRAN
Slide 21: Proven Results Appendix
PROVEN RESULTS 21 APPENDIX
Slide 22: 3600 Peterson Way, Santa Clara, CA
MULTI-TENANT OFFICE | ACQUIRED OCTOBER 2016 INVESTMENT THESIS Acquired well-located office building in rapidly evolving densifying market with property that is entitled for additional FAR at a favorable cap rate OPERATIONAL ACTIONS Changed property management and leasing 22 RESULT: SOLD FOR AN UNLEV
Slide 23: Whole Foods, Sarasota, FL
MULTI-TENANT RETAIL | ACQUIRED OCTOBER 2014 INVESTMENT THESIS Acquired Class A urban infill grocery anchored shopping center in a rapidly growing downtown residential market with leasing upside OPERATIONAL ACTIONS ▪ ▪ ▪ Rebranded center Repainted, restriped and redesigned parking garage for better f
Slide 24: The Grove, Winter Park, FL
MULTI-TENANT RETAIL | ACQUIRED DECEMBER 2014 INVESTMENT THESIS Acquired vacant 114,000 square foot, shopping center and vacant out-parcel pad site on 14 acres in Winter Park at opportunistic basis OPERATIONAL ACTIONS ▪ ▪ ▪ Renovated and repositioned property Changed leasing management Leased vacant
Slide 25: Track Record: Loan Investments
GLENN HOTEL $17.5mm First Mortgage Atlanta, GA Rate: LIBOR + 450 SOUTHGATE MALL $9.0mm B-Note Sarasota, FL Rate: LIBOR + 750 GLENN HOTEL $5.0mm Mezzanine Loan Atlanta, GA Rate: 12% fixed ➢ ➢ ➢ $4.0mm First Mortgage Volusia County, FL Rate: 11% fixed ➢ ➢ $14.5mm First
Slide 26: CTO Assets to Be Sold to Alpine
26 CTO ASSETS TO BE SOLD TO ALPINE
Slide 27: Endnotes
A. Alpine intends to apply to list its common stock on the New York Stock Exchange under the symbol “PINE” following the completion of its IPO. B. Based on CTO management’s current expectations. Definitive offering terms have not yet been finalized and are subject to change. C. CTO will receive a fi
Slide 28: Contact Us
TRANSFORMING CARPENTER HOTEL, AUSTIN, TX | 93 ROOMS MORE THAN OUR NAME ASPEN CORE BUILDING, ASPEN, CO | 19,596 SF Contact Us Investor Relations: Mark E. Patten P: 386.944.5643 mpatten@ctlc.com 1140 N. Williamson Boulevard, Suite 140 Daytona Beach, FL 32114 P: 386.274.2202 info@ctlc.com www.ctlc.com
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