Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Consolidated Tomoka Land — Investor Presentation (November 2014)
50 slides from Cto Realty Growth's investor presentation, Nov 3, 2014
Slide 1: Q3 2014 Investor Presentation
i ' : 4 CONSOLIDATED @eTOMOKA Q3 -— 2014 Investor Presentation Published: November 3, 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?
Highlights Portfolio Daytona Who is CTO2 ® Consolidated-Tomoka Land Co. is a real estate operating company founded over 100 years ago and public since 1969 ® CTO is primarily focused on transitioning from land assets into income-producing assets Lond > Income cre ONSOLIDATED TOMORKA
Slide 4: CTO A Snapshot
CTO A Snapshot As of October 24. 2014 unless otherwise noted CTO: Share Performance “ CTO: Stock Price RMZ Index: Index Performance “) Equity Market Capitalization Total Debt (as of September 30, 2014) Other Liabilities (as of september 30, 2014) Total Enterprise Value Debt less Cash / Total Enterpr
Slide 5: A Snapshot — Asset Rich
CTO A Snapshot — Asset Rich As of October 24, 2014 Land & 10,500+ acres Subsurface 490,000+ acres Subsurface Rights taare 38 Single-Tenant Income Properties, 10 States ‘ 5 Self-Developed Flex/Office Properties Properties 21 Billboards First Mortgage Loan for Redevelopment of Retail Income Property L
Slide 6: Why Invest?
CTO Highlights Portfolio Daytona Why Invest¢ Increase Growth Income Runway Credits & Markets Converting Land to Income Florida Real Estate Recovery Share Repurchase Shareholder Friendly yomoxa, Unlocking Shareholder Value
Slide 7: Highlights
Highlights Portfolio Daytona PPPL OL LL LIL IL ED PEEPLES ELISE SLE ILE CUNSOLIDAILLD TOMORA
Slide 8: By the Numbers
CTO {i yhlights F By the Numbers $0.99 Annual Results for 2011 —2013 and YTD as of September 30, 2014 $1.00 Earnings $0.64 $0.80 Total Revenues $25,838 st a Per Share $30,000 z (S000’s) ; $25,000 $0.40 $0.10 $16,233 $0.20 $20,000 $12,966 ec $15,000 $(0.20) $10,000 $0.40) $0.60 $5,000 eee) $0.80) k.,
Slide 9: Balance Sheet
Highlights Portfolio Daytona Balance Sheet as of September 30, 2014 ($ in 000°s) - aes we Property: Plant. and Equipment: Basis in Subsurface Interests Land, Timber, and Subsurface Interests $s 15312 ———__* Goif Buildings, Improvements, and Equipment 3209 $0 per acre Income Properties Land, Building
Slide 10: Focus on Income Investments
CTO Highlights Portfolio. = Daytona Focus on Income Investments Annual Results for 2011 —2013 and YTD as of October 24,2014 ($ in millions ) S554 $70.0 $60.0 $30.3 Ss s- INCOME PROPERTY COMMERCIAL LOAN AGGREGATE INVESTMENTS INVESTMENTS INVESTMENTS CUNSULIDPALTED TOMORKA ©2011 =2012 ™2013 »YTDOCT 201
Slide 11: Income Investments — 2014
Highlights [een Income Investments — 2014 As of October 24, 2014 B® Acquisitions LOWE'S | — 2-single-tenant income properties (Katy, TX & Daytona Beach, FL) WHOLE — 1 multi-tenant retail property (Sarasota, FL) FQops — $39.1mm aggregate purchase price psucs — Weighted average remaining lease term of
Slide 12: Income Producing Investments
Sic | Highlights Income Producing Investments as of October 24. 2014 O Location of Commercial Loan Investments VY) Number of Income Property Investments CONSOLIDATED @U TOMOKA
Slide 13: Top Tenants by Rent
Highlights Portfolio Top Tenants by Rent As of October 24, 2014 S&P S&P Credit Credit Retailer Type Rating Stores %ofGLA %of Rent 7 Retailer Type Rating Stores %ofGLA %of Rent CVS © DRUG sTORE NR 8 103% 17.0% DRUG STORE B 1 17% = 4.0% Whlgrecns DRUG STORE BBB 573% «© 13.0% |DICK’S| ‘SPORTING GOODS N
Slide 14: Geographic Diversity
Geographic % based on rent as of October 24, 2014 Diversit IL
Slide 15: 2014 Acquisition: Whole Foods Market Centre
Portfolio 2014 Acquisition H@ Whole Foods Market Centre — Sarasota, FL — $19.1mm, 7.1 years remaining (weighted average), rf. — 3-mi Pop. 68,690; 3-mi Median HHI $45,903 59,000 square feet of total retail space 36,000 square feet free-standing WHOLE FOODS MARKET 23,000 square feet ground floor retai
Slide 16: Improving Income Portfolio Demographics
OC Highlights Portfolio Improving Income Portfolio Demos Portfolio average as of August 31, 2014 $90,000 $76,126 $80,019 $66,431 seam $54,856 S55 52 $80,000 $60,000 so 000 IT 51.23 $50,000 alicid $60,000 $51,230 $50,000 $40,000 $40,000 $30,000 ried $20,000 $20,000 $10,000 $10,000 ' so $0 2011 2012 2
Slide 17: Improving Income Portfolio Demographics vs peers
Portfolio Improving Income Portfolio Demos Non-Power Center Average3 mile Population (in 000’s) 120 119 111 ii§fif#ddaddaaa AK RT KIM ROIC WRI cT $93 Non-Power Center Median 3 mile Household Income (in $000’s) baad s72 S71 570 376 6 5 : 20 sai $62 $61 $61 FRT AKR REG ROIC VNO KIM cTo EQY WRI BRX RPA
Slide 18: Distribution Facility Land Transaction
Distribution Facility LAND TRANSACTION -— Daytona Beach, FL CLOSED — AUGUST 15, 2014 Gross Sales Price: $7.8mm @ 76 Acres along I-95 and Dunn Avenue Bi 630,000+ SF distribution facility @ Estimated total capital investment by buyer approximately $80mm H Creation of estimated 400 - 500 new jobs ™® CT
Slide 19: Land Sale
HL ey A pee aie Highlights Land Sale LAND TRANSACTION -— Daytona Beach, FL CLOSED -— October 30, 2014 Gross Land Sales Price: $625,000 Sale of Mitigation Credits: $389,000 Total Proceeds: $1.04 million @ Approx. 21 Acres east of Williamson Blvd ® Potential expansion/relocation of office space for lo
Slide 20: Self-Developed Properties
Self-Developed Properties @ Five properties totaling approximately 84,000 SF all in Daytona Beach, FL Concierge Office: 1 property; approx. 22,000 square feet; 100% leased Two Story Office @ Mason Commerce Center: 2 properties; approx. 31,000 square feet; 94% leased One Story Flex ® Williamson Busin
Slide 21: Commercial Loan Investments
CTO Highlights Portfolio Daytona Commercial Loan Investments As of September 30, 2014 January 2014 Mezzanine Hotel Atlanta, GA $5,000,000 12.00% February 2019 May 2014 B-Note Retail Shopping Center Sarasota, FL $8,960,467 Libor+725 June 2015 May 2014 First Mortgage Loan Redevelopment of Retail Phoen
Slide 22: Golf Operations
Golf Operations OPERATING RESULTS ($ in millions) $5.07 $(0.32) 2013 YID Q3 2014 = OPERATING REVENUE S OPERATING INCOME (LOSS) as $4.66 $4.51 $5.00 $4.00 $3.00 $2.00 $1.00 & $(1.00) LER $(2.00) 2011 2012 56 MEMBERSHIP a6 GROWTH 250 200 118 150 100 50 : 2011 2012 2013 335 YTD Q3 2014 LPGA INTERNATION
Slide 23: Subsurface Interests
Highlights Subsurface Interests a Lease with Kerogen Florida Energy Co. wtainGriahien - Amended 8-year oil exploration lease EXPLORATION LLC * Sept 2014 $600k payment - drilling requirements * Sept 2014 $1.9mm payment — 4" year lease payment * Leased acres total 42,000 in Hendry County, FL * Renewab
Slide 24: Subsurface acres and oil/gas counties
CTO Highlights Portfolio Daytona Average success rate for wells drilled in Florida between 1995-2008 was 77% Approximately 95% of total subsurface acres rary a CTO owns full or partial interest in (=| Remaining 5% of total subsurface acres approximately 490,000 subsurface acres wv Counties withactiv
Slide 25: Other Sources of Revenue and Cash
| Highlights [qRGRrGHe Other Sources of Revenue and Cash ® Agriculture (third-party manager) - Approximately 4,000 acres in hay and hunting leases A FM L — Approximately 6,300 acres in timber production — YTD Q3 2014: $258k in revenue (vs. $149k in YTD Q3 2013) @ Billboards - 21 Billboards: 18 on I-
Slide 26: Segment Income
Highlights Segment Income* Income Properties Commercial Loan Investments Real Estate Operations Golf Operations Agriculture and Other Income Total Segment Income Total Segment Income Growth *Revenues less direct cost of revenue cy 77.11%
Slide 27: Liquidity Position and Debt Summary
As of September 30. 2014 Liquidity Position (excluding restricted cash) $ in 000’s $50,000 $40,000 $30,000 $20,000 $10,000 & Available Credit Capacity ™ Cash Balance (excludes restricted cash) CUNSUOLIVALLD \f TOMOKA 10° Highlights Pe Debt Summary - Debt to Market Cap (exchiding restricted cash) 30.
Slide 28: CTO Advantage: Implied Cap Rate
CTO Advantage Implied Cap Rate Top Three Tenants Portfolio Daytona Source: CTO estimates and publicly available documents All information as of October 27, 2014; CTO information as of September 30, 2014 AvgLease Debt+Pref/ Market Credit Rating Term (Yrs) Cap cVs @ NR —_ CONSOLIDATED NIA Walgreens BB
Slide 29: 2014 Guidance
CTO 2014 Guidance Earnings per share (a afilly dihted basis) Acquisition of Income-Producing Assets Target Investment Yields Disposition of Non-Core Income Properties Target Disposition Yields Land Transactions Gales vaiue) Leverage Target (as % of Total Enterprise Value) (1) As of October 24. 2014
Slide 30: Where does the Stock Market Value our Land?
Highlights Portfolio Daytona Where does the Stock Market Value our Land? Trading Value of Land Outstanding Shares 5,867,180 Share Price (asoroctober 24, 2014) $50.23 Market Capitalization (2s of ocoter 24. 2014) $294,708,451 Long-Term Debt $81,190,011 Deferred Income Taxes (Net) $33,989,478 Other Li
Slide 31: Historical Land Revenue
Highlights Portfolio Daytona Historical Land Revenue $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Average Price/Acre Residential Commercial Total Total Acres Sold Annual Land Revenue for 2005 —2013 and YTD as of October 31, 2014 $36,205 (Land Revenue in $000°s) $23,095 $20,703 $
Slide 32: Land sales map
mllelalitelayis Portfolio Daytona Sold 20.96 acres $30k/ac |October 2014 Sold 75.60 acres $103k/ac |August 2014 Sold 3.06 acres @ — $128k/ac | February 2014 Sold 2.02 acres e _— $317k/ac | December 2013 _—— Intracoastal P rscorac f jeanne J a | Sold 3.41 acres Race Trac. $382k/ac | December 2013 Sol
Slide 33: Harvesting Value: Potential Land Transactions
CTO Highlights Portfolio Daytona Harvesting Value: Potential Land Transactions _ WEST OF 1-95 = Potential Transaction 1 Approx. 1,500— 1,700 acres Total Acres West of I-95 Approx. 8.200 acres EAST OF 1-95 Potential Transaction 2 Approx. 15-20 acres Potential Transaction 3 Approx. 30-40 acres Potenti
Slide 34: Shareholder Friendly
© (ieee = 9: Shareholder Friendly @ Share Buy Back: Bought back 25,836 shares in February and March 2014 for $928k (average price $35.92 per share) Board of Directors reduced to 7 in 2014 from 11 in 2011 Annual election of board Additional disclosure and transparency Improved shareholder communicati
Slide 35: Housing Rebound
Highlights Fomoliows Daytona Housing Rebound Annual Data for 2004 — 2013 and YTD 2014 as of September 30, 2014 Annual Pernits Issued for 6,000 Deltona-Daytona Beach-Ormond Beach Area 5,068 5,000 Number of Permits sad Pag s #§ 3 1,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTD 2014 Source:
Slide 36: Home of NASCAR
Home of NASCAR CUS CL INTERNATIONAL SPEEDWAY CORPORATION” a $400mm renovation of Daytona International Speedway creating — 1,200 direct jobs — 101,000 seating capacity and 53 suites - Projected completion date: January 2016 a DAYTONA RISING
Slide 37: Large Commercial Development
Large Commercial Development Nt DAYTONA @ Approved for a 180-acre development including : entertainment, restaurants, retail, hotel and residential uses ® Several hundred million dollars invested locally @ Anchored by Bass Pro Shops & Cobb Theatres ® Marriott branded hotel announced @ City and Count
Slide 38: World-Class University
World-Class University EMBRY-RIDDLE Aeronautical University A 2 le 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 f
Slide 39: Major Florida Intersection
Major Florida Intersection U0 YU @ Widening is well underway — $134mm project will provide more capacity along I-4 through to the I-95 interchange — Estimated to be complete in early 2015
Slide 40: Top Institutional Shareholders
CIO Highlight Portfolio Br Top Institutional Shareholders we SHAREHOLDER SHARES % WINT ong REEN Wintergreen Advisers LLC 1,543,075 26.35 BlackRock Institutional 375,181 6.09 Third Avenue Management LLC 258,368 4.40 Vanguard® Vanguard Group, Inc. 165,907 2.83 Dimensional Fund Advisors, Inc. 157,897 2
Slide 41: Experienced Team
CTO Experienced Team seb it Company 3 * Archon Capital, a Goldman Sachs Company J ohn P. Albright Z Morgan Stanley 20 if 1 EATER CBS. * Crescent Real Estate Equities = Simply Self Storage Mark E. Patten * CNL Hotels & Resorts 012 Senior Vice President and CFO + Vistana Inc. * KPMG Daniel E. Smith *
Slide 42: 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 43: Frequently Asked Question
CTO Hiah icy +t< Pornicalio Jet Frequently Asked Question ® What is the impact of rising interest rates on the value of your assets? An increase in interest rates (or rising inflation) would likely have an adverse impact on cap rates with a commensurate impact on the value of our existing income pro
Slide 44: 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 web: www.ctle.com NYSE MKT: CTO For additional information, please see our Annual Report on Form 10-K for the year ended December
Slide 45: Appendix
Appendix
Slide 46: baie
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Slide 47: Automall
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Slide 48: Well-Positioned Land
Well- Positioned Land @ FLORIDA HOSPITAL ee MEMORIAL MEDICAL CENTER oat
Slide 49: Well-Positioned Land
ned Land UPTO 200t/ACRES 80+, ACRES UP TO 80+ ACRES
Slide 50: Well-Positioned Land
Well-Positioned Land 850+ ACRES
Consolidated Tomoka Land — Investor Presentation (November 2014) on 6ix