Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Consolidated Tomoka Land — Q3 2016 Earnings Presentation
55 slides from Cto Realty Growth's earnings presentation, Oct 20, 2016
Slide 1: 3rd Quarter 2016 Investor Presentation
(NYSE MKT: CTO) Quarter Investor 3rd 2016 Presentation Published: October 19, 2016
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. Certain statements contained in this presentation (other than statements of historical fact) are forward-looking statements. Words such as “believe,” “estimate,” “expect,” “int
Slide 3: CTO at a Glance
CTO at a Glance As of September 30, 2016 (unless otherwise noted) Company Founded 1910 Shares Outstanding 5,745,514 Dividend Level $0.04/share – Quarterly Number of Employees 14 Share Price (as of October 14, 2016) $50.03 3 Earnings per Share (year-to-date)$1.96 52 week Stock Price Range$60.09 - $42
Slide 4: Snapshot
Snapshot As of September 30, 2016 (unless otherwise noted) (1) Equity Market Cap Debt (A) $287.4 million $141.3 million Total Enterprise Value (‘TEV’) (1) (A) Cash (including 1031 restricted cash) Leverage (net debt to TEV) (1) (A) $428.7 million $ 12.1 million 30.1% LAND HOLDINGS INCOME PROPERTIES
Slide 5: How Low does Stock Market Value our Land?
(L) How Low does Stock As of September 30, 2016 (unless otherwise noted) Market Value our Land? Total Adjusted Enterprise Value (TAEV)(1) (A) $484mm Net TAEV Attributable to Remaining 6,400 Acres of Land (“Remaining Acres”) (1) (A) $54mm Net TAEV per Acre Attributable to Remaining Acres (1) (A) $8,4
Slide 6: Components of Value
Components of As of September 30, 2016 (unless otherwise noted) Value (L) ($ in 000’s) Multi-Tenant 3,882 Subsurface (Contract Value) (B)(5) 24,000 Total NOI $16,375 Impact Fees (1)(M) 2,700 Infrastructure Reimbursements (1) (4) 6,500 Cash and 1031 Restricted Cash (1) 12,100 East of I-95 [1,000 acre
Slide 7: Share Price Performance
(1) Share Price Performance 1 year, 3 year and 5 years ended September 30, 2016 (adjusted for dividends) 1.Source: Bloomberg as of October 17, 2016 Comparative Performance 7 Symbol 1 year 3 years 5 years 5 yr. Annualized CTO 3.0% 33.7% 96.5% 14.5% REIT Index RMZ 19.8% 48.5% 108.2% 15.8% Russell 2000
Slide 8: Share Price Appreciation Versus Single Tenant REITs
(1) Share Price Appreciation Price Appreciation based upon a theoretical investment of $100 ADC EPR 11/20/15 O STOR SRC NNN LXP CTO 1.Source: Bloomberg as of July 15, 2016 Versus Single Tenant REITs 8 Theoretical $100 Investment
Slide 9: 3rd Quarter Highlights & Subsequent Events
3rd Highlights - Quarter & Subsequent Events Income Property Operations Completed $77.4 million in acquisitions at weighted average cap rate of 6.16% Closed on Sale of 14 asset portfolio (see Slide 36): $51.6mm, $11.4mm gain, exit cap rate of 4.73% Sold non-core (vacant) income property (Altamonte S
Slide 10: Positive Trends
Positive Trends Annual Results for 2012 – 2015 and YTD Q3 2016 Total Revenues Basic Earnings Per Share ($000’s) 2012 2013 2014 2015 YTD Q3 2016 Operating Income ($000’s) Book Value Per Share 2012 2013 2014 2015 YTD Q3 2016 10
Slide 11: Monetizing our Land
Monetizing ourLand Annual Land Sales for 2005 – 2015 and YTD 2016 & Pipeline as of 10/14/16 (B) Note: Multi-family included in residential (Land Sales in $000’s) 2012 – YTD 2016 Total Sales $40.4mm Avg. Price/Acre $149k Average Price/Acre Residential Commercial Total Total Acres Sold $ $ $ 20,665 14
Slide 12: Analysis of Price per Acre – Sales Since 2012
Analysis As of October 14, 2016 of Price per Acre – Sales Since 2012 + Pipeline West of I-95 East of I-95 East of I-95 408.24 $ 64,250 $ 157.4 West of I-95 Total 3,914.51 $ 73,309 $ 18.7 4,322.75 $ 137,559 $ 31.8 Residential Commercial Total 3,959.48 363.27 $ $ 71,642 65,918 $ $ 18.1 181.5 4,322.75
Slide 13: Potential Land Sales
Potential Land As of October 14, 2016 Sales (B) Commercial/Retail 2 7 3 Total Potential 4,100 Sales = approx. $98.5mm Acres $24k/acre 13 1 6 5 4 Contract/Parcel Acres Contract Amount Price per Acre (rounded) Timing Minto (AR Residential) 1 1,581 $28.7mm $18,000 ’16 – ‘17 Minto (AR Residential) 2 1,6
Slide 14: Status of Large Land Deals Under Contract
Status of Large Land Deals Under Contracts (B) Minto Communities Under Contract 1,581 Acres (Oasis Daytona) Pending Wetlands Permit North American Dev. Sold/Under Contract Group 42 Acres Purchased/82 Acres Under Contract Pre-Leasing Underway Working on Rezoning & Site Plan Application ICI Homes (B)
Slide 15: Potential Land Absorption – West of I-95
(B) Potential Land Absorption – West of I-95 F 1,053 Acres A B E C Acres $20k/acre U/C I/P – Under Contract – In Process D 15 600 2,366 Acres 1,581 Acres 1,686 Acres Contract ParcelUseStatusTimingAmount/Value Estimate AResidentialU/C‘18-’19$31.4mm B ResidentialU/C‘16-’17$28.7mm CResidentialU/C‘16-’1
Slide 16: - CO:-.!SOLIDAl ED •• TO IOKA
- CO:-.!SOLIDAl ED 16 •• TO IOKA
Slide 17: Well-Positioned Land: Industrial Parcel
Portfolio Land Holdings Well-Positioned Land: Industrial Parcel - CO:-.!SOLIDAl ED 17 •• TO IOKA
Slide 18: Well-Positioned Land: North of LPGA
Portfolio Land Holdings Well-Positioned Land: North of LPGA -CONSOLIDATED (Ill TO IOKA 18
Slide 19: Real Estate Venture – Property Summary
(B) Real Estate Venture – Property Summary Beach Front Property Gross Site Area Developable acres Beach frontage 6.04 Acres 3.63 Acres 505 feet Venture Transaction Summary Approximately $5.7mm initial investment 50% ownership interest in venture CTO earns base management fee CTO receiv
Slide 20: Income Producing Investments
Income As of October 14, 2016 Producing Investments Total Portfolio NOI as of 10/14/16 = $18.6mm (1) Based on NOI Approx. 36% NOI from Credit Tenants 20 SINGLE-TENANT 66% MULTI-TENANT 34% OFFICE 50% RETAIL 50% Portfolio Mix(1)(H) Largest Markets (1)(H) City % of NOI Raleigh 18.3% Santa Clara 12.6% O
Slide 21: Income Property Portfolio – Single-Tenant
Income Property Portfolio (G)(H) Single-Tenant Portfolio As of October 14, 2016 Wells Fargo AA-Raleigh, NC Office 450,393 8.0 $2,760,909 Hilton Grand Vacations Lowe's CVS Harris Teeter Container Store At Home Rite Aid Dick's Sporting Goods Best Buy Big Lots Barnes & Noble Walgreens Big Lots Walgreen
Slide 22: Income Property Portfolio – Multi-Tenant
Income Property As of October 14, 2016 Portfolio (G)(H) Multi-Tenant Portfolio 245 Riverside Ave Whole Foods Centre Concierge Mason Commerce (Flex) 7-11/Dallas Pharmacy Williamson Bus.Park Grove at Winter Park Total - Multi-Tenant Class A N/A Class B Class B N/A Class B N/A Jacksonville, FL Sarasota
Slide 23: Fastest Growing MSAs in U.S.
Fastest Growing MSA’s in U.S. As of August 2016 1 Orlando-Kissimmee-Sanford 4.4% 1,213 4 properties 3 San Jose – Sunnyvale – Santa Clara 3.6% 1,087 1 property 5 Denver – Aurora – Lakewood 3.2% 1,455 7 Portland – Vancouver - Hillsboro 2.9% 1,145 9 Charlotte – Concord – Gastonia 2.6% 1,133 1 property
Slide 24: 2016 Acquisition 3600 Peterson
2016 Acquisition 3600 Peterson (Santa Clara, CA) $30.0mm Investment Class A Office 100% Leased Tenancy: Two tenants 5.53 year lease term 75,841 Square Feet 5.24 Acres Single Story Complete ($14mm) renovation in 2014 Potential FAR of 177,000 Sq Ft Potential for Additional Density 24 Income Properties
Slide 25: 3600 Peterson Well Located in Growth Market
2016 Acquisition 3600 Peterson (Santa Clara, CA) $30.0mm Investment Boston Properties Well Located in Growth Market 25 Menlo Equites & Beacon Capital The Campus In April of 2016 Purchased 3625 Peterson Way for $78 MM / $358 In June of 2016 LeEco acquired a 48.6 acre site from Yahoo for $250 MM Incom
Slide 26: 2016 Acquisition CVS Ground Lease
2016 Acquisition CVS Ground Lease (Dallas, TX) $14.9mm Investment Acquired with 25 years of lease term remaining 10,340 Square Feet S&P credit rating: BBB+ 0.91 Acres New construction, built in 2016 Potential FAR of 400,000 sq. feet of vertical development 3-Mile Demographics Population: 177,625 Avg
Slide 27: 2016 Acquisition Bloomin Brands Sale Leaseback
2016 Acquisition Bloomin Brands NNN Sale Leaseback ( TX, NC, VA) $14.9mm Investment Acquired all properties with new 15 year lease terms 26,217 rentable square feet S&P credit rating: BB 7.92 Acres Huntersville, NC Charlottesville, VA 3-Mile Demographics - Portfolio Population: 73,217 Avg. HH income
Slide 28: 2016 Acquisition At Home NNN Lease
2016 Acquisition At Home NNN Lease (Raleigh, NC) $9.2mm Investment Acquired with 13+ years of lease term remaining 116,334 Square Feet S&P credit rating: B 10.64 Acres Built in 1995 3-Mile Demographics Population: 88,281 Avg. HH income: $68,037 Basis Low Rent Low 28 Income Properties
Slide 29: 2016 Acquisition Bank of America Ground Lease
2016 Acquisition Bank of America Ground Lease (Monterey, CA) $8.4mm Investment 4.2 years of lease term remaining 32,692 Square Feet S&P credit rating: A 1.26 Acres Built in 1982 Potential Redevelopment with zoning for up to 4 stories 3-Mile Demographics Population: 61,735 Avg. HH income: $93,610 Red
Slide 30: Potential Redevelopment Opportunities
Potential Redevelopment Opportunities Bank of America Monterey, CA Bank of America Branch Two Story 1.26 Acres Up to 4 stories Beach Parcel Daytona Beach, FL Beachfront Land Vacant 6.04 Acres 750,000+ SF 30 Wells FargoAdditional Raleigh, NC40.33 Acres450,000 SF Office250,000 SF 3600 Peterson Way76,0
Slide 31: Portfolio Highlights (Raleigh, NC)
Portfolio Highlights (Raleigh, NC) Single-Tenant $42.3mm Investment Single-Tenant Class A Office Rent @ 50% below market Investment basis - $94/sq. ft. or approx. 50% below replacement cost 8.0 years remaining on lease Rent Escalation in 2019 450,393 Square Feet Investment Grade Tenant: Wells Fargo
Slide 32: Portfolio Highlights (Jacksonville, FL)
Portfolio Highlights (Jacksonville, FL) Multi-Tenant $25.1mm Investment Class A Office Strong Retail/Residential development activity in area Investment basis ($185/sq ft) below replacement cost 4.5 years weighted average remaining on leases 100% Occupied 136,856 Square Feet Former St. Joe Headquart
Slide 33: Portfolio Highlights (Glendale, AZ)
Portfolio Highlights (Glendale, AZ) Single-Tenant $8.6mm Investment 13.4 years remaining on lease 3-mi Pop. 106,525 3-mi Avg HHI $76,173 23,329 Square Feet 2015 New Construction Single-Tenant, Triple Net Lease Outparcel to Macerich’s Arrowhead Mall (avg. sales of $650 per sq. ft.) Major renovation o
Slide 34: Portfolio Highlights (Sarasota, FL)
Portfolio Highlights (Sarasota, FL) Multi-Tenant $19.1mm Investment 6.9 years weighted average remaining on leases 59,341 Square Feet - 100% Occupied 3-mi Pop. 68,157 3-mi Avg HHI $63,561 36,000 square feet (or 61% of property) leased to free standing Whole Foods Market BBB-Credit 9 yrs remaining on
Slide 35: 14 Asset Portfolio – Sold
14Asset Portfolio – Sold Bank of America - Laguna Beach, CA Bank of America Bank of America Bank of America Bank of America Bank of America Bank of America Bank of America Bank of America Bank of America Walgreens Walgreens JPMorgan Chase CVS Buffalo Wild Wings Single Tenant Single Tenant Single Ten
Slide 36: Opportunistic Investment: The Grove at Winter Park
Opportunistic Investment The Grove at Winter Park (Winter Park, Approx. 112,000 sq ft 35% Leased 14.35 acres 548 Parking Spaces 3-mi Pop. 93,236 3-mi Avg HHI $59,994 FL) $3.1mm Investment (multi-tenant) Negotiating LOI’s on 20,000 sq. feet of infill space Virtually Vacant When Acquired Potential Sta
Slide 37: How Our Portfolio Compares With Triple-Net REITs
How our Income Property Portfolio Compares With Triple-Net REITs 1. 2. Source: National broker reports Top 3 based on NOI (H) Top 3 Locations Cap Rate (1) Top 3 Tenants (2) Rating Term TEV Wells Fargo Hilton Grand Vacations Lowe’s AA-NR A-North Carolina California Florida N/A 8.2 30.1% Bank of Ameri
Slide 38: Transformation of our Portfolio – 2011 vs 2016
Transformation of our Portfolio – 2011 vs 2016 3600 Peterson Santa Clara, CA CVS Tallahassee, FL At Home Raleigh, NC CVS Clermont, FL CVS Melbourne, FL Big Lots Germantown, MD Carrabas Austin, TX CVS Sebastian, FL CVS Dallas, TX CVS Clermont, FL Lowe's Katy, TX RBC (PNC) Altamonte Springs, FL Outbac
Slide 39: Commercial Loan Investments
Commercial Loan As of September 30, 2016 Investments $24.0 million invested Wtd. Avg. Rate 8.8% SOUTHGATE MALL GLENN HOTEL DFW HYATT $9.0mm B-Note Sarasota, FL Rate: LIBOR + 750 Maturity: June ‘17 $10.0mm Mezzanine Loan Dallas, TX Rate: LIBOR + 725 Maturity: Sept. ‘
Slide 40: Liquidity and Leverage
(A) Liquidity and Liquidity Position (excluding restricted cash) ($ in 000’s) Leverage As of September 30, 2016 97% of Debt at Fixed rate as of September 30, 2016 Debt Schedule ($ in millions) Credit Facility Convertible Notes CMBS Loan CMBS Loan Mortgage Loan Total $ 58.8 - - - $ 4.0 75.0 30.0 7.3
Slide 41: REIT Conversion Benefits for Shareholders
(E) REIT Conversion Benefits for Shareholders Potential Valuation Uplift Enhance Cash Flows Expand Shareholder Base Tax Efficient, Substantially Eliminate Corporate Taxation Paid Taxes - $1.2mm (’15), $3.0mm (’14), $1.6mm (‘13) Dedicated REIT investors, ETF and Index Fund buyers, and Income
Slide 42: Share Repurchase Program
(C)(J) Share Repurchase Program New Share Repurchase Program (Authorized in ‘15) $10.0 million Q1 2016 28,862 $1,339,613 $46.41 Q2 2016 33,889 $1,658,922 $48.95 Prior Share Year Repurchase Program (Authorized in ‘08) $8.0 million Average Price/Share Shares Repurchased Investment Increased Pace 42
Slide 43: 2016 Guidance – Status Update
2016 Guidance – Status As of September 30, 2016 (unless otherwise noted) Update Acquisition of Income-Producing Assets (B)(1) $70mm - $85mm $79.8mm Disposition of Income Properties (B)(K)(1) $15.0mm - $25mm (K) $22.7mm (K) Land Transactions (sales value) (B)(1) $25.0mm - $35.0mm $5.4mm (1) As of Oct
Slide 44: Development on our Land
Development on our Land Development Update Land Sold by CTO (F) Tanger Factory Outlet Grand Opening – November 18, 2016 Integra Sands Apartments (F) Pre-Leasing set to begin December Under Construction – Complete by Grand Opening October 2016 Site Planning for Power Center Pre-Leasing underway A
Slide 45: Development on our Land: Tanger Outlets
evelopment on our Land Tanger Outlets as of 1 0.15. 16 Tanger· Outrets Grand Opening Nov 2016 - CO:-.!SOLIDAl ED •• TO IOKA D Daytona
Slide 46: Development on our Land: Integra
Daytona Development on our Land Integra as of 1 0.15.1 6 INTEGRA LAND COMPANY Multi-Family Moving In 46
Slide 47: Development on our Land: TopBuild
Daytona Land TopBuild as of 10.15.16 Public Company Headquarters coNsOLIDA1FD TO IOKA 47 Development on our
Slide 48: Development on our Land: CarMax
evelopment on our Land CorMax as of 1 0. 15. 1 6 • I . October ' 16 Grand Opening - CO:-.!SOLIDAl ED •• TO IOKA D Daytona
Slide 49: Development on our Land: Orthopedic Clinic
Daytona evelopment on our Land Orthopedic Clinic of DB as of 10.15.16 Orthopaedic Clinic of Daytona Beach Medical Office - CO:-.!SOLIDAl ED 49 •• TO IOKA D
Slide 50: Top Institutional Shareholders
Top InstitutionalShareholders Shareholder Wintergreen Advisers LLC (1) Shares 1,543,075 % 26.62 BlackRock Institutional 308,343 5.32 Northern Trust Corporation 295,443 5.10 Carlson Capital LP 192,028 3.31 Vanguard Group 188,135 3.25 Dimensional Fund Advisors 186,668 3.22 Fenimore Asset Management 15
Slide 51: Experienced Team
Experienced Team Started with Company • Morgan Stanley • Morgan Stanley • Cobb Cole 14 Full-Time Employees 51 John P. Albright President and CEO • Archon Capital, a Goldman Sachs Company • Crescent Real Estate Equities 2011 Mark E. Patten Senior Vice President and CFO • Simply Self Storage • CNL Hot
Slide 52: Board of Directors
Board of Directors 52 Director Since John P. Albright President & Chief Executive Officer of the Company 2012 John J. Allen President of Allen Land Group, Inc. 2009 Laura M. Franklin Executive Vice President, Accounting & Administration of Washington REIT 2016 Jeffry B. Fuqua Chairman of the Board o
Slide 53: Well-Positioned
Well-Positioned as of September 30, 2016 Land - CO:-.!SOLIDAl LD 53 •• TO IOKA
Slide 54: Endnotes
Endnotes A. B. Debt amount includes the face value of the Convertible Notes outstanding as of September 30, 2016 There can be no assurances regarding the likelihood or timing of the potential transaction(s) or, if any occur, the final terms including sales price There can be no assurances regarding
Slide 55: Contact Us
Contact Us Consolidated-Tomoka Land Co. 1530 Cornerstone Boulevard Daytona Beach, FL 32117 main: 386.274.2202 fax: 386.274.1223 email: info@ctlc.com web: www.ctlc.com NYSE MKT: CTO For additional information, please see our most recent Annual Report on Form 10-K, copies of which may be obtained by w
Consolidated Tomoka Land — Q3 2016 Earnings Presentation on 6ix