Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Consolidated Tomoka Land — Investor Presentation (April 2019)
31 slides from Cto Realty Growth's investor presentation, Apr 17, 2019
Slide 1: 1st Quarter 2019 Investor Presentation: Moving to the Next Stage
NYSE American: CTO 1st QUARTER 2019 INVESTOR PRESENTATION MOVING TO THE NEXT STAGE 50 YEARS AS A PUBLIC COMPANY Apollo 11 Launch July 1969
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: Why CTO
WHY CTO CONSOLIDATED TOMOKA As of April 12, 2019 (unless otherwise noted) Discount to NAV Organic Capital Source Portfolio Quality Equity Market Cap $ 306.6 million Debt (E) $ 229.2 million Total Enterprise Value (“TEV”) (E) $ 535.9 million Cash (including 1031 restricted cash) (1) $ 2.7 million Net
Slide 4: Q1 2019 Highlights
Q1 2019 HIGHLIGHTS CONSOLIDATED TOMOKA Continuing to Execute Our Strategy 4 MONETIZING LAND HARVEST MULTI-TENANT REDEPLOY PROCEEDS INTO SINGLE-TENANT RETAIL TOTAL SALES PROCEEDS: $3.3 million ACRES: ≈9.9 PRICE PER ACRE: $333,000 GAIN: $2.3mm ($0.32/share, net of tax) TOTAL SALES PRICE: $24.6 million
Slide 5: 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 2013 –2018, 1st Quarter for 2019 ($000’s) Consistent Growth in Key Metrics (1) Basic Earnings per Share including from discontinued ope
Slide 6: CTO Snapshot
CTO SNAPSHOT CONSOLIDATED TOMOKA A Lot More Income than Land Percentages based on values derived on NAV worksheet on Slide #6 46 Properties 2.3 million Sq. Ft. Retail and Office NOI $32.3 million (C) Subsurface Interests >450,000 Acres 5,400 Total Acres 3,241 Acres (60%)(A) Under Contract for $
Slide 7: NAV Worksheet
NAV WORKSHEET (A)(F) CONSOLIDATED TOMOKA Indicative of Meaningful Discount in our Stock Price 7 Cap Rate on NOI (C) Contract amounts As of April 12, 2019 As of March 31, 2019 Reflects repurchase of 320,741 shares from CTO’s largest shareholder on 4/10/19 Excludes intangible lease liabilities As of A
Slide 8: Momentum Monetizing Land
MOMENTUM MONETIZING LAND CONSOLIDATED TOMOKA Monetizing Land With Tax Deferred Strategy (Land Sales in $000’s) Dramatic Acceleration Monetizing Land Annual Land Sales: 2011 –2018, YTD Q1 2019 & Pipeline(A) as of 4/12/19 8 (2) (1) (1) ACRES 11.7 99.6 114.0 707.6 1,700.9 2,697.3 2011 – 2018 and YTD Q1
Slide 9: Pipeline of Potential Land Sales
Contract/Parcel Acres Contract Amount (rounded) Price per Acre (rounded) Timing Residential (SF) 1,599 $27.0mm $17,000 ‘19 - ‘20 ICI Homes (SF) 1,016 $21.5mm $21,000 ‘19 Commercial/MOB 32 $8.1mm $253,000 ‘19 - ‘20 Residential (MF)/Retail 38 $6.1mm $161,000 Q4 ’19 Unicorp 31 $4.6mm $148,000 ‘19 - ‘20
Slide 10: Income Property Investments
INCOME PROPERTY INVESTMENTS Converting into Income ($000’s) Total Acquisitions for 2011 – 2018, YTD Q1 2019 and Est. for Remainder of 2019 (J) Diversified Markets Higher Quality Properties Net of master tenant purchase contribution of $1.5 million for acquisition of income property in Aspen, CO in Q
Slide 11: Recycling Capital into Single-Tenant
RECYCLING CAPITAL INTO SINGLE-TENANT CONSOLIDATED TOMOKA Proceeds $24.6 million Sarasota, FL MULTI-TENANT PROPERTY Sales Price/Sq. Ft.: $415 Harvesting Value Redeploying Capital 11 Monetize Multi-Tenant Property – Redeploy Proceeds into Single-Tenant Retail Jacksonville, FL CAP RATE: 5.98% Purchase
Slide 12: Portfolio Highlights: Stronger Markets, Stronger Credits
PORTFOLIO HIGHLIGHTS CONSOLIDATED TOMOKA Stronger Markets – Stronger Credits 12 (% = as a % of Total NOI) As of April 12, 2019 Total Square Feet (2) Investment Grade Tenants (H) ≈2.3 36% States 14 Total Properties Annualized NOI (1) (C) 46 $32.3 Single Tenants >10% of NOI (C) 2 Geographic Diversity
Slide 13: Portfolio Highlights: Transitioning to Single-Tenant
PORTFOLIO HIGHLIGHTS As of April 12, 2019 CONSOLIDATED TOMOKA Transitioning to Single-Tenant Over Time 13 Portfolio Mix Annual NOI (C) ≈$32.3mm Wgtd. Avg. Lease Term 8.4 yrs. (1) 14 States Square Feet ≈2.3mm High Quality & Diversified Portfolio (% = as a % of Total NOI) (1) Weighted average for Sing
Slide 14: Top Tenants Versus Peers
TOP TENANTS VERSUS PEERS CONSOLIDATED TOMOKA Which Would You Rather Own? 14 BBB 3.4% BBB- 3.3% BBB 3.0% BBB 2.6% B- 5.5% 8.9 47% 63%/37%/0% Discount -5% Stock Price vs NAV(1)(4) Avg. Lease Term (1)(4) Leverage Level (1) (4) Retail/Office/Other (4) 14.0 29% 83%/17%/0% Premium 28% B+ 2.4% NR 1.7% NR 2
Slide 15: How CTO's Portfolio Stacks Up
HOW CTO’S PORTFOLIO STACKS UP CONSOLIDATED TOMOKA Stronger Demographics = Better Markets & Long-Term Real Estate 15 Three Mile Population(1)(3) Implied Cap Rate(2) 3-Mile Avg. Household Income(1)(3) CTO info as of Q1 2019 Peer implied cap rates info from Janney Montgomery Scott LLC as of April 12, 2
Slide 16: Liquidity & Leverage
LIQUIDITY & LEVERAGE CONSOLIDATED TOMOKA Net Debt to TEV ≈ 42% Fixed Rate Debt ≈ 56% Unsecured Debt ≈ 76% Weighted Average Rate = 4.11% Average Duration 3.6 years As of April 12, 2019 (1) (unless otherwise noted) Debt Schedule (E) ($ in millions) Liquidity Position ($ in 000’s) Total Commitment of C
Slide 17: Returning Capital to Shareholders: Share Buybacks
RETURNING CAPITAL to SHAREHOLDERS (B)(D) CONSOLIDATED TOMOKA Cumulative From 2012 Through 4/12/19 Consistent Approach Accretive to NAV 17 Cumulative Shares Purchased Cumulative $ Repurchased ($ in millions) Aggregate Avg. Price/Share $54.51 ≈$7.4mm Remaining on $10mm BUYBACK PROGRAM approved in JAN
Slide 18: Returning Capital to Shareholders: Dividends
RETURNING CAPITAL to SHAREHOLDERS CONSOLIDATED TOMOKA 2012 Through Q1 2019 Disciplined Approach to Returning Capital 18 Annualized Dividend per Share INCREASING DIVIDEND + PAID QUARTERLY Dividends(G) Cumulative % increase in Dividend 50% 75% 100% 200% 350% 575% Note: 2019 based on annualization of Q
Slide 19: 2019 Guidance
2019 GUIDANCE CONSOLIDATED TOMOKA Monetizing Land Growing Free Cash Flow Recycling Capital 19 FY2019 Guidance Q1 2019 Actual Earnings Per Share (Basic) (1)(2) $6.75 - $7.50 $0.25 Incremental EPS (Basic) From Dispositions (2) $2.25 - $2.75 $0.96 Acquisition of Income-Producing Assets $80mm - $120mm -
Slide 20: Appendix
CONSOLIDATED TOMOKA 20 APPENDIX
Slide 21: Single-Tenant Portfolio
CONSOLIDATED TOMOKA (1) Two properties Single-Tenant Portfolio (C) APPENDIX 21 As of April 12, 2019 (C) Lease contains rent escalations Tenant/Building S&P Credit Rating Location Property Type Asset Type Rentable Square Feet Remaining Lease Term Fidelity N/A Albuquerque, NM Office Single Tenant 210,
Slide 22: Single-Tenant Portfolio
CONSOLIDATED TOMOKA Single-Tenant Portfolio (C) APPENDIX 22 As of April 12, 2019 (C) Lease contains rent escalations Tenant/Building S&P Credit Rating Location Property Type Asset Type Rentable Square Feet Remaining Lease Term Walgreens BBB Alpharetta, GA Retail Single Tenant 15,120 6.6 Cocina214 NR
Slide 23: Multi-Tenant Portfolio
CONSOLIDATED TOMOKA Multi-Tenant Portfolio APPENDIX 23 (C) As of April 12, 2019 (C) Lease contains rent escalations Tenant/Building S&P Credit Rating Location Property Type Asset Type Rentable Square Feet Remaining Lease Term 3600 Peterson NR Santa Clara, CA Office Multi-Tenant 75,841 3.0 245 Rivers
Slide 24: Active Adult Community Development on Land Sold by CTO
APPENDIX CONSOLIDATED TOMOKA > 600 Homes Sold Since Opening in Q4 2017 Active Adult Community – 3,400 Total Homes Planned Development in Progress on Land Sold by CTO 24 Commercial/Retail Development LPGA Blvd New Phases Amenities Under Construction
Slide 25: Tomoka Town Center Luxury Rental Community
APPENDIX CONSOLIDATED TOMOKA At Tomoka Town Center 276-Unit Luxury Rental Community Development in Progress on Land Sold by CTO 25 Projected development costs $39 million Final Site Approval expected Feb ’18 Construction start date Spring ‘18 Opening expected Q2 2019 Tomoka Pointe
Slide 26: Sam's Club Development on Land Sold by CTO
APPENDIX CONSOLIDATED TOMOKA Membership Wholesale Club Only New Development of Sam’s Club in U.S. Development in Progress on Land Sold by CTO 26
Slide 27: Amazon Distribution Center and New Office
APPENDIX CONSOLIDATED TOMOKA New Distribution Center & New Office Last Mile Distribution Center for Amazon Development in Progress on Land Sold by CTO 27 Future Home of Costa Del Mar
Slide 28: New Multi-Family Property
APPENDIX CONSOLIDATED TOMOKA New Multi-Family Location 300 Unit Multi-Family Property 28 Development in Progress on Land Sold by CTO LPGA Blvd
Slide 29: Self Storage Property
APPENDIX CONSOLIDATED TOMOKA Williamson Blvd. & Mason Avenue Self Storage Property 29 Development in Progress on Land Sold by CTO
Slide 30: End Notes
END NOTES CONSOLIDATED TOMOKA 30 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 31: Built to Last: Contact Us
NYSE American: CTO 1st QUARTER 2019 INVESTOR PRESENTATION BUILT TO LAST 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 by wri
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