Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Consolidated Tomoka Land — Q3 2019 Earnings Presentation
29 slides from Cto Realty Growth's earnings presentation, Oct 18, 2019
Slide 1: 3rd Quarter 2019 Investor Presentation: A Bellwether Moment
NYSE American: CTO 3rd QUARTER 2019 INVESTOR PRESENTATION A BELLWETHER MOMENT Celebrating 50 Years as a Public Company – Closing Bell Ceremony at the NYSE
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: CTO Snapshot: Our Current Scorecard
CTO SNAPSHOT CONSOLIDATED TOMOKA Our Current Scorecard 3 CASH/1031 RESTRICTED CASH MULTI-TENANT PORTFOLIO $105.1mm COMMERCIAL LOAN INVESTMENTS (1) SINGLE-TENANT PORTFOLIO MINERAL INTERESTS LAND JV MITIGATION BANK JV DOWNTOWN DAYTONA LAND ASSEMBLAGE TOTAL DEBT SHARES OUTSTANDING EQUITY MARKET CAP (@1
Slide 4: Track Record of Strong Operating Results
’14 – ’18 CAGR 29% ’14 – ’18 CAGR 52% ’14 – ’18 CAGR 50% ’14 – ’18 CAGR 16% ($000’s) TRACK RECORD OF STRONG OPERATING RESULTS CONSOLIDATED TOMOKA Annual Results for 2014 –2018, YTD as of Q3 for 2019 ($000’s) Consistent Growth in Key Metrics (1) Basic Earnings per Share including from discontinued op
Slide 5: CTO Q3 Update: Continuing to Execute Our Strategy
CTO Q3 UPDATE CONSOLIDATED TOMOKA Continuing to Execute Our Strategy 5 As of October 16, 2019 LAND HARVEST MULTI-TENANT TOTAL SALES PRICE: $97.3mm (5,300 acres) PRICE PER ACRE: ≈$18,000 TOTAL SALES PRICE: $2.8mm GAIN: $2.1mm ($0.33/share, net of tax) WGTD. AVG. EXIT CAP RATE: 4.5% INCOME AGGREGATE P
Slide 6: Land JV vs Implied Value of Land
LAND JV vs IMPLIED VALUE OF LAND CONSOLIDATED TOMOKA Favorable Monetization of Remaining Land Portfolio 6 As of October 16, 2019 (unless otherwise noted) As of September 30, 2019 Interest sold based on 66.5% of implied value established for 100% of the Land JV In addition to the $97 million in proce
Slide 7: CTO Snapshot: Poised to Deploy ≈$100mm in 1031 Proceeds
CTO SNAPSHOT CONSOLIDATED TOMOKA Poised to Deploy ≈$100mm in 1031 Proceeds to Grow Income 52 Properties 2.3 million Sq. Ft. Retail and Office NOI $33.9 million (C) Downtown Daytona Land Assemblage Subsurface Interests >450,000 Acres % of Total Value of Asset Components As of October 16, 2019 (unle
Slide 8: Earnings & Profits Update
EARNINGS & PROFITS UPDATE CONSOLIDATED TOMOKA Requires Shareholder Vote 8 No Decision has been made by CTO to convert to REIT Structure Completed Steps in Evaluation Estimate accumulated historical Earnings and Profits (E&P) Prepared by “Big Four” firm Confirmed ability to distribute 80% of E&P in C
Slide 9: Momentum Monetizing Land
MOMENTUM MONETIZING LAND CONSOLIDATED TOMOKA (Land Sales in $000’s) Monetizing Land with Tax Deferred Strategy Annual Land Sales: 2013 –2018, YTD OCTOBER 16, 2019 9 (2) (1) (1) ACRES 11.7 99.6 114.0 707.6 1,700.9 2,697.3 (1) (1) Includes sales proceeds representing reimbursement of infrastructure co
Slide 10: Income Property Investments
INCOME PROPERTY INVESTMENTS Converting into Income ($000’s) Total Acquisitions for 2013 – 2018, YTD 2019 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 Includes the investment of appr
Slide 11: Single-Tenant Retail Investment, Oceanside NY
SINGLE-TENANT OFFICE INVESTMENT CONSOLIDATED TOMOKA Major MSA Strong Demographics 11 Single Tenant Retail 1.24 Acres 10.17 year Lease Term Built in 1999, renovated 2014 Tenant added 5,000 square feet to foot print in 2014 Located in dense corridor on Long Island, NY (20 minutes to JFK, 1 hour to NYC
Slide 12: Single-Tenant Retail Investment, East Troy WI
SINGLE-TENANT OFFICE INVESTMENT CONSOLIDATED TOMOKA Iconic Asset High-Quality Tenant 12 Single Tenant Retail 158 Acres 10.58 year Lease Term 2.5% Annual Rent Escalations Built in 1977 Recognized iconic entertainment venue Geographically situated to draw from Chicago and Milwaukee markets Acquisition
Slide 13: Single-Tenant Office Investment, Reston VA
SINGLE-TENANT OFFICE INVESTMENT CONSOLIDATED TOMOKA Major MSA Strong Demographics 13 Single Tenant Office 2.98 Acres 9.9 year Lease Term Annual Rent Escalations Built in 1984, renovated 2001/2018 Subsidiary of One of Largest Defense Contractors globally Tenant completed $17 million Renovation in 201
Slide 14: Single-Tenant Ground Lease Investment, Austin TX
SINGLE-TENANT GROUND LEASE INVESTMENT CONSOLIDATED TOMOKA High Growth Market Strong Demographics 14 Single Tenant Ground Lease 93 Rooms 5.28 Acres 99 year Lease Term Annual Rent Escalations Percentage Rent based on NOI hurdle Built in 1949/2018 Discount to replacement cost Acquisition Cap Rate 5.75%
Slide 15: Portfolio Highlights: Stronger Markets, Stronger Credits
PORTFOLIO HIGHLIGHTS CONSOLIDATED TOMOKA Stronger Markets Stronger Credits 15 (% = as a % of Total NOI) As of October 16, 2019 Total Square Feet (2) Investment Grade Tenants (H) ≈2.3 45% States 17 Total Properties Annualized NOI (1) (C) 52 $33.9 Single Tenants >10% of NOI (C) 2 Geographic Diversity
Slide 16: Portfolio Highlights: Portfolio Now >90% Single-Tenant
PORTFOLIO HIGHLIGHTS As of October 16, 2019 CONSOLIDATED TOMOKA Portfolio now > 90% Single-Tenant 16 Portfolio Mix Annual NOI (C) ≈$33.9mm Wgtd. Avg. Lease Term 11.0 yrs. (1) 17 States Square Feet ≈2.3mm High Quality & Diversified Portfolio (% = as a % of Total NOI) (1) Weighted average for Single-T
Slide 17: Top Tenants Versus Peers
TOP TENANTS VERSUS PEERS CONSOLIDATED TOMOKA Which Would You Rather Own? 17 CTO info as of October 16, 2019 and Discount to NAV based on B Reilly FBR NAV as of July, 2019; CTO Avg. Lease Term is STNL properties only BLUE Letters denote S&P Investment Grade ratings % per tenant is as % of NOI for CTO
Slide 18: Commercial Loan Investments
COMMERCIAL LOAN INVESTMENTS CONSOLIDATED TOMOKA Short Duration High Risk Adjusted Yields High Growth Markets 19 $8.0mm Loan Type: First Mortgage Loan - Secured Security: 72 +/- acre land parcel Location: Orlando, FL Rate: 12% Fixed Fees (Origination/Exit): 2.0%/0.50% Maturity: June 2020 Max Maturity
Slide 19: Liquidity & Leverage
LIQUIDITY & LEVERAGE CONSOLIDATED TOMOKA Net Debt to TEV ≈ 30% Fixed Rate Debt ≈ 45% Unsecured Debt ≈ 81% Weighted Average Rate = 4.00% Average Duration 3.8 years As of October 16, 2019 (unless otherwise noted) Debt Schedule (E) ($ in millions) Liquidity Position ($ in 000’s) Total Commitment of Cre
Slide 20: Returning Capital to Shareholders: Share Buybacks
RETURNING CAPITAL to SHAREHOLDERS (B)(D) CONSOLIDATED TOMOKA Annual Investments From 2013 Through 2018, and YTD as of 10/16/19 Consistent Approach Accretive to NAV 21 Share Buybacks(B)(D) Includes repurchase of 320,741 shares on 4/10/19 from CTO’s largest shareholder, which was completed outside of
Slide 21: Returning Capital to Shareholders: Dividends
RETURNING CAPITAL to SHAREHOLDERS CONSOLIDATED TOMOKA 2012 Through 2019 Disciplined Approach to Returning Capital 22 INCREASING DIVIDEND + PAID QUARTERLY Dividends(G) Cumulative % increase in Dividend 50% 75% 100% 200% 350% 575% Note: Based on Q4 2019 dividend of $0.13 per share approved 10.16.19 CA
Slide 22: 2019 Guidance
2019 GUIDANCE CONSOLIDATED TOMOKA Monetizing Land Growing Free Cash Flow Recycling Capital 23 FY2019 Guidance YTD Q3 2019 Actual Earnings Per Share (Basic) (1) $6.75 - $7.50 $0.60 Incremental EPS (Basic) From Dispositions (1) $2.25 - $2.75 $3.07 Acquisition of Income-Producing Assets $80mm - $120mm
Slide 23: CTO Shareholder Base
CTO SHAREHOLDER BASE CONSOLIDATED TOMOKA No Shareholder Owns > 7% of CTO’s Outstanding Shares As of September 30, 2019 24 BlackRock Fund Advisors 6.9% Dimensional Fund Advisors LP 6.3% The Vanguard Group, Inc. 5.1% Carlson Capital 4.6% V3 Capital Management 5.1% Magnetar Financial 3.3% Boston Partne
Slide 24: Appendix
CONSOLIDATED TOMOKA 25 APPENDIX
Slide 25: Single-Tenant Portfolio
CONSOLIDATED TOMOKA (1) Two properties Single-Tenant Portfolio APPENDIX 26 As of October 16, 2019 (C) Lease contains rent escalations N/A N/A (1) Tenant/Building S&P Credit Rating Location Property Type Rentable Square Feet Remaining Lease Term % of NOI Fidelity BBB Albuquerque, NM Office 210,067 9.
Slide 26: Single-Tenant Portfolio (continued)
CONSOLIDATED TOMOKA Single-Tenant Portfolio (C) APPENDIX 27 As of October 16, 2019 (C) Lease contains rent escalations (C) Tenant/Building S&P Credit Rating Location Property Type Rentable Square Feet Remaining Lease Term % of NOI Big Lots BBB- Glendale, AZ Retail 34,512 3.3 1.1% Walgreens BBB Birmi
Slide 27: Multi-Tenant Portfolio
CONSOLIDATED TOMOKA Multi-Tenant Portfolio APPENDIX 28 (C) As of October 16, 2019 (C) Lease contains rent escalations Tenant/Building S&P Credit Rating Location Property Type Rentable Square Feet Remaining Lease Term % of NOI 245 Riverside Ave N/A Jacksonville, FL Office 136,856 2.6 6.3% Westcliff S
Slide 28: End Notes
END NOTES CONSOLIDATED TOMOKA 29 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 29: Contact Us
NYSE American: CTO 3rd QUARTER 2019 INVESTOR PRESENTATION A BELLWETHER MOMENT 1140 N. Williamson Boulevard, Suite 140 Daytona Beach, FL 32114 P: 386.274.2202 Info@ctlc.com www.ctlc.com For additional information, please see our most recent Annual Report on Form 10-K, copies of which may be obtained
Consolidated Tomoka Land — Q3 2019 Earnings Presentation on 6ix