Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Consolidated Tomoka Land — Conference Presentation (June 2017)
28 slides from Cto Realty Growth's conference presentation, Jun 6, 2017
Slide 1: Consolidated-Tomoka Land Co. Presentation
Consolidated-Tomoka Land Co. Presentation at Mark E. Patten Senior Vice President & Chief Financial Officer (NYSE MKT: CTO) Monday, June 5, 2017
Slide 2: Forward Looking Statements
Forward Looking Statements 2 Forward Looking Statements 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 stateme
Slide 3: About CTO
About CTO Consolidated-Tomoka Land Co. (NYSE: CTO) is a 107-year old Florida-based publicly traded real estate company, which owns a land portfolio in Daytona Beach, Florida, and a high-quality portfolio of income investments in diversified markets in the United States including: > 1.9 million sq. f
Slide 4: Why Consider CTO?
Why Consider CTO? Trading at Discount to NAV Free Cash Flow Positive Self-Funding Investment Platform – Organically Created Capital from Monetizing Land on Tax Deferred Basis through 1031 Structure Active Share Repurchase Program (B)(D) Strong Pipeline of Land Sales under Contract (A) Majority of As
Slide 5: Notable Issues & Frequent Questions
Notable Issues & Frequent Questions Low Liquidity/Trading Volume 12,000 shares per day We are Not a REIT Low Dividend Payer $0.16/share per year CTO’s Largest Shareholder (27% of shares o/s) has not supported Management and Board for past 18 months Perceived as Florida Land Company – “You’re just li
Slide 6: CTO's Strategy
CTO’s Strategy 6 From 2012 to June 1, 2017 As of June 1, 2017 Consistently Executed Since 2011 Monetizing Land (Using 1031 structure) Grow, Improve, Enhance and Diversify Convert into Income Efficient Overhead - Conservative Balance Sheet Return Capital to Shareholders Commitment to Governance and A
Slide 7: Status of Execution of Business Plan In 2017
Status of Execution of Business Plan In 2017 Sold ≈1,649(1) acres of Land for $36.1mm Strong Pipeline of Land Sales Under Contract ($74.4mm, ≈ 2,100 acres, ≈ 26% of Remaining Land)(2)(A) In 2017 Acquired 4 income properties for $40.0mm(1) at 6.65% Average Cap Rate Significant Acceleration in Share R
Slide 8: Track Record of Strong Operating Results
8 Total Revenues ($000’s) Operating Income ($000’s) Basic Earnings Per Share Book Value Per Share Track Record of Strong Operating Results Annual Results for 2012 – 2016 Consistent Growth in Key Metrics 2016 Highest EPS in CTO History 2012 – 2016 CAGR 43.9% 2012 – 2016 CAGR 156.4% 2012 – 2016 CAGR 1
Slide 9: CTO Snapshot
CTO Snapshot 9 As of March 31, 2017 (unless otherwise noted) Operating Segments Land Holdings (2) Income Properties Loan Investments Subsurface Interests (2) As of June 1, 2017 Land holdings and subsurface interests are part of the real estate operations segment Equity Market Cap (1) $309.3 million
Slide 10: Illustration of Self-Funding Potential
Illustration of Self-Funding Potential 10 $178.8mm @ $29.8k per Acre (1)(2) $74.4mm (A) Potential Proceeds Current Portfolio of Income Properties ≈ $21.9mm ≈ $350.4mm NOI @ 6.25% Cap Rate Land Holdings ≈ 2,100 Acres (A) Under Contract ≈ 6,000 Acres (Not Under Contract) Portfolio Value $0 Converting
Slide 11: Momentum Monetizing Land
11 (Land Sales in $000’s) Momentum Monetizing Land Monetizing Land With Tax Deferred Strategy Annual Land Sales for 2005 – 2016, YTD 2017 & Pipeline (A) as of 6/1/17 2012 – YTD 2017 Total Sales $84.8mm Acres Sold 2,599 Current Management Team 2005 – 2011 Total Sales $86.7mm Acres Sold 1,077
Slide 12: Analysis of Price/Acre (since 2012)
12 Analysis of Price/Acre (since 2012) Demonstrating Value Value Indicators for Remaining Land Holdings East of I-95 West of I-95 Under Contract as of June 1, 2017 (A) Total Average Price per Acre $33.8k (Sales Price & Avg. Price Per Acre in $000’s) $9,600 $11,100 $12,400 $17,200 $18,600 $21,300 $29
Slide 13: Pipeline of Potential Land Sales
1 2 4 7 3 6 5 13 SF – Single Family; AR – Age Restricted Commercial/Retail Contract/Parcel Acres Contract Amount (rounded) Price per Acre (rounded) Timing Minto (AR Residential) 1,686 $31.4mm $19,000 ’18 - ‘19 ICI (SF) – Option Parcel 146 $1.4mm $10,000 ’18 - ‘19 Residential (SF) 129 $2.8mm $21,000
Slide 14: Development Status – On Land Sold by CTO Since 2012
Development Status – On Land Sold by CTO 14 Since 2012
Slide 15: Active Developments Enhancing Value of Remaining Land Holdings
Active Developments 15 Enhancing Value of CTO’s Remaining Land Holdings Minto Communities & Margaritaville Enterprises ≈ 1,600 Acres 3,400 Units Age-Restricted Residential Under Construction - Delivery of 1st Units in 2018 ICI Homes ≈ 600 Acres 1,000 Units Residential Under Construction - Delivery o
Slide 16: Attracting High Quality Companies
Attracting High Quality Companies 16 DISTRIBUTION CENTER Estimates primarily based on publicly available information >$1 Billion of Investment ≈ 3,500 Jobs Use Year Sold Acres Total Investment in Development (1) Jobs (1) Open Date (1) Auto Dealership 2013 6 $ 5 Million 50 Oct ‘16 Distribution Center
Slide 17: Diversified High Quality Portfolio
17 Total Portfolio – Annual NOI (C) ≈ $21.9mm Diversified High Quality Portfolio As of June 1, 2017 City % of NOI Raleigh 15.6% Santa Clara 10.2% Jacksonville 8.7% Orlando 8.7% Sarasota 7.1% All Other 49.7% Largest Markets (C) Approx. 40% of NOI from Investment Grade Tenants (I) Stronger Real Estate
Slide 18: Diversified High Quality Portfolio
18 Diversified High Quality Portfolio As of June 1, 2017 Stronger Real Estate Geographic and Tenant Diversification 36 Income Properties 20 Markets SF >1.9 million 8.0 Wtd./ Avg. Lease Term 3600 Peterson Santa Clara, CA 245 Riverside Ave. Jacksonville, FL Wells Fargo Raleigh, NC Carrabba’s Austin, T
Slide 19: How CTO's Portfolio Stacks Up
19 How CTO’s Portfolio Stacks Up Stronger Demographics Higher Density 3-Mile Population (1) 3-Mile Avg. Household Income (1) 3-Mile Median Household Income (1) Implied Cap Rate (2) Source: FBR & Co., SNL Financial, Inc. Source: BMO Capital Markets as of 5/29/17 As of June 1, 2017 85,534 58,580 54,50
Slide 20: Top Tenants versus Peers
20 Top Tenants versus Peers Better Credit Better Real Estate Source: FBR & Co., SNL Financial, Inc. % reflects percentage of NOI AA- BB+ BBB- A B+ BBB BBB BBB B+ BB+ BBB AA A NR NR Raleigh, NC Orlando, FL Sarasota, FL Katy, TX Brandon, FL 3.8% 4.0% 4.2% 5.5% 7.0% 0.0% 5.0% 10.0% 15.0% 2.7% 2.8% 3.2%
Slide 21: Opportunistic Investments in Income
Expected opening Q1 2018 Total estimated investment: $16.8 million Prior owner (developer) acquired the land in 2007 for approximately $34.5 million Received entitlement for 1 million sq. ft. 21 Opportunistic Investments in Income Targeted investment yield (near term investment): 7% - 11% unlevered
Slide 22: G&A Expenses vs Peers
23 (% of Total Enterprise Value) 2017 Peer Group. Excludes peer companies that are not December 31st year-end and Preferred Apartments which is an externally advised REIT Adjusted for ≈ $1.5 million in legal, accounting, director fees and other expenses associated with Board’s investigations of alle
Slide 23: Returning Capital to Shareholders
24 Cumulative Shares Purchased Cumulative From 2012 Through June 1, 2017 Returning Capital to Shareholders (B)(D) 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 YTD 2017 $5,281,703 99,810 Total $20,580,010 41
Slide 24: Management Team
25 Management Team John P. Albright President & Chief Executive Officer Archon Capital, a Goldman Sachs Company Morgan Stanley Crescent Real Estate Equities Mark E. Patten Senior Vice President & Chief Financial Officer Simply Self Storage CNL Hotels & Resorts Vistana Inc. KPMG Daniel E. Smith Senio
Slide 25: Board of Directors
26 Board of Directors Experienced Independent Director Since 2008 William L. Olivari Certified Public Accountant, Formerly Partner with Olivari & Associates PA Director since 2011 Howard C. Serkin Chairman, Heritage Capital, Inc. Director since 2010 Thomas P. Warlow, III Chairman, Georgetown Enterpr
Slide 26: CONSOLIDATED
CONSOLIDATED TOMOKA Phase! 1,686 Acres
Slide 27: End Notes
End Notes 28 End note 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 shall be closed or the timing or final terms thereof. T
Slide 28: Contact Us
(NYSE MKT: CTO) For additional information, please see our most recent Annual Report on Form 10-K, copies of which may be obtained by writing the corporate secretary at the address above, or at www.ctlc.com. Consolidated-Tomoka Land Co. 1530 Cornerstone Boulevard, Suite 100 Daytona Beach, FL 32117 P
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