Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Consolidated Tomoka Land — Q2 2016 Earnings Presentation
37 slides from Cto Realty Growth's earnings presentation, Jul 22, 2016
Slide 1: 2nd Quarter Investor Presentation
2nd Quarter Investor Presentation Published: July 22, 2016 (NYSE MKT: CTO)
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: Snapshot
Snapshot OPERATING SEGMENTS LAND HOLDINGS INCOME PROPERTIES LOAN INVESTMENTS SUBSURFACE INTERESTS 10,500 Acres Undeveloped Land 37 Properties 1.5 million sq. ft Retail & Office 3 Loans Hotel & Retail 500,000 Acres Book Value $0 With » 4,100 Acres Under Contract »$103mm (2)(B) NOI = $16.3 million (H)
Slide 4: Proactive Value Enhancing Measures
Proactive Value Enhancing Measures Action Sizing/Timing Comments Remaining Share Repurchase $7mm Accelerate Buyback through YE 2016 (C) Quarterly Dividend (formerly semi-annual) $0.04/Qtr. 100% Increase (D) Monetize Loan Portfolio $24mm Use of Proceeds – Accretive Investments (B) REIT Conversion N/A
Slide 5: Components of Value
Components of Value (L) As of June 30, 2016 (unless otherwise noted) Other Asset Components (2) Commercial Loan Portfolio (1) $24,000 Subsurface (Contract Value) (B) $24,000 Beach Real Estate Venture (1) $5,700 Impact Fees (1) $2,900 Mitigation Credits (1) $1,400 Infrastructure Reimbursements (1) (4
Slide 6: Net TAEV Attributable to Land
As of June 30, 2016 (unless otherwise noted) Equity Market Cap (1) $277mm Debt (A) $160mm 1031 Tax Deferred Liabilities $51mm Total Adjusted Enterprise Value (TAEV) (1) (A) $488mm Less: Income Properties (@7% cap rate on NOI) ($233mm) Less: Contract Amount for Subsurface Interests (B) ($24mm) Less:
Slide 7: Share Price Performance
Share Price Performance (1) 1 year, 3 year and 5 years ended June 30, 2016 (adjusted for dividends) Symbol 1 year 3 years 5 years 5 yr. Annualized CTO -17.5% 25.0% 67.2% 10.8% REIT Index RMZ 24.1% 46.2% 80.6% 12.5% Russell 2000 RTY -6.7% 22.8% 49.3% 8.3% JOE 14.1% -15.8% -15.0% -3.2% TRC -8.1% -14.4
Slide 8: 2nd Quarter Highlights
2nd Quarter Highlights Land Pipeline (B) : 10 land sales contracts representing »4,100 acres, approx. 39% of land holdings, »$103 million in potential proceeds, approx. $25,000 per acre Settled regulatory matter: Pre-2011 agriculture activities on 3,200 acres West of I-95, (anticipate spending appro
Slide 9: Annual Results for 2012 – 2015 and YTD Q2 2016
Total Revenues ($000’s) Operating Income ($000’s) Annual Results for 2012 – 2015 and YTD Q2 2016 Basic Earnings Per Share Positive Trends Book Value Per Share 2012 2013 2014 2015 YTD Q2 2016 2012 2013 2014 2015 YTD Q2 2016
Slide 10: Financial Statement Snap Shot
Income Statement As of and for the six months ended June 30, 2016 Balance Sheet Financial Statement Snap Shot
Slide 11: Land Holdings: Monetizing our Land
Land Holdings Monetizing our Land (B) Annual Land Sales for 2005 – 2015 and YTD Q2 2016 & Pipeline as of 7/19/16 (Land Sales in $000’s) Note: Multi-family included in residential Avg. Price Per Acre - Closed Transactions (2012 – YTD Q2 2016) » $149k/acre Executing Our Strategy
Slide 12: Land Holdings: Analysis of Price per Acre
Land Holdings Analysis of Price per Acre As of July 19, 2016 East of I-95 West of I-95 Under Contract (B) Sales Price and Price Per Acre ($ in 000’s) Heavily discounted by Market
Slide 13: Land Holdings: Land Activity Update
Land Holdings Land Activity Update Tanger Factory Outlet (F)Grand Opening – November 18, 2016 Minto Communities (B) Received Zoning & Entitlements Under ContractMade Joint Permit Application to U.S. Army Corps North American Dev. GroupSite Planning for Power Center Pre-Leasing underway ICI Homes (B)
Slide 14: Land Holdings: Potential Land Sales
Land Holdings Potential Land Sales (B) Total Potential Sales = approx. $103mm » 4,100 Acres » $25k/acre Total Acres West of I-95 Approx. 9,300 acres Total Acres East of I-95 Approx. 1,200 acres As of July 19, 2016 SF – Single Family; AR – Age Restricted Commercial/Retail 6 7 9 3 8 5 10 4 1 2 Contrac
Slide 15: Potential Land Absorption – West of I-95
Land Holdings Potential Land Absorption – West of I-95 (B) Parcel Use Status Timing Amount A Residential U/C ‘18-’19 $31.4mm B Residential U/C 2016 $29.9mm C Residential U/C 2016 $9.0mm D Residential N/A N/A $10k-$20k/acre E Mitigation Bank I/P TBD $5k-$12k/acre F Residential N/C TBD $15k-$20k/acre
Slide 16: Real Estate Venture – Beach Front Property
Land Holdings Real Estate Venture – Beach Front Property (B) Opportunistic Investment Gross Site Area6.04 Acres Developable acres3.63 Acres Beach frontage505 feet Property Summary Approximately $5.7mm investment 50% ownership interest in venture CTO earns base management fee CTO receives 9% preferre
Slide 17: Income Properties
Income Properties Location of Loan Investments Number of Income Property Investments CTO Headquartered in Daytona Beach, FL 1 2 9 3 14 1 1 2 1 3 Income Producing Investments Approx. 59% NOI from Credit Tenants As of June 30, 2016 Office43% Retail57% Based on NOI (H)
Slide 18: Income Property Portfolio
Income Properties Income Property Portfolio (G)(H) As of June 30, 2016 Strong Cash Flow
Slide 19: Portfolio Under Contract to Sell
Income Properties Portfolio Under Contract to Sell(B) Bank of America - Laguna Beach, CA Tenant Tenant Type Market Bank of America Single Tenant Garden Grove, CA Bank of America Single Tenant Westminster, CA Bank of America Single Tenant Laguna Beach, CA Bank of America Single Tenant Walnut, CA Bank
Slide 20: Future Income Growth: The Grove at Winter Park
Opportunistic Investment $3.1mm Investment (multi-tenant) Income Properties Future Income Growth Approx. 112,000 sq ft 35% Leased 14.35 acres 548 Parking Spaces 3-mi Pop. 93,236 3-mi Avg HHI $59,994 Immediate area experiencing strong real estate growth/new development The Grove at Winter Park (Winte
Slide 21: Income Property Portfolio vs Triple-Net REITs
How our Income Property Portfolio Compares With Triple-Net REITs Income Properties Superior Portfolio Quality Implied Cap Rate (1) Top 3 Tenants (2) Credit Rating Average Lease Term Debt+Pref/TEV N/A Wells Fargo Hilton Grand Vacations Walgreens AA- NR BBB 7.5 (G) 29% 5.8% Walgreens Walmart Wawa BBB
Slide 22: Commercial Loan Investments
Loan Investments Commercial Loan Investments As of June 30, 2016 $10.0mm Mezzanine Loan Dallas, TX Rate: LIBOR + 725 Maturity: Sept. ‘17 » $9.0mm B-Note Sarasota, FL Rate: LIBOR + 750 Maturity: June ‘17 $5.0mm Mezzanine Loan Atlanta, GA Rate: 12% fixed Maturity: Feb ‘19 » $24.0 million invested Wtd.
Slide 23: Liquidity and Leverage
Liquidity and Leverage (A) Liquidity Position (excluding restricted cash) ($ in 000’s) Debt Schedule ($ in millions) Total Commitment of Credit Facility = $75 million Shown as 0.00% as there is no amount drawn as of June 30, 2016, stated rate = 30-Day LIBOR plus 135-225 bps Maturity includes first 1
Slide 24: REIT Conversion: Benefits for Shareholders
Benefits for Shareholders Potential Valuation Uplift Tax Efficient, Substantially Eliminate Corporate Taxation Enhance Cash FlowsPaid Taxes - $1.2mm (’15), $3.0mm (’14), $1.6mm (‘13) Expand Shareholder BaseDedicated REIT investors, ETF and Index Fund buyers, and Income Oriented Investors Increased L
Slide 25: Share Repurchase Program
Share Repurchase Program (C)(J) Prior Share Repurchase Program (Authorized in ‘08)$8.0 million New Share Repurchase Program (Authorized in ‘15) $10.0 million Year Shares Repurchased Investment Average Price/Share 2008-2016 164,533 $7,971,058 $48.45 Year Shares Repurchased Investment Average Price/Sh
Slide 26: 2016 Guidance
2016 Guidance YTD Q2 2016 Earnings per share $2.75-$3.00/share $0.52/share Acquisition of Income-Producing Assets (B) $70mm - $85mm $2.5mm Target Investment Yields (Initial Yield – Unlevered) 6% - 8% 5.5% Disposition of Non-Core Income Properties (B) $15.0mm - $25mm (K) $19.7mm (K) Target Dispositio
Slide 27: Development on our Land: Tanger Outlets
Grand Opening Nov 2016 Tanger Outlets as of 7.15.16 Development on our Land
Slide 28: Development on our Land: Integra Multi-Family
Multi-Family Moving In Integra as of 7.15.16 Development on our Land
Slide 29: Development on our Land: CarMax
Commercial West of I-95 CarMax as of 7.15.16 Development on our Land
Slide 30: Development on our Land: TopBuild Headquarters
Public Company Headquarters TopBuild as of 7.15.16 Development on our Land
Slide 31: Development on our Land: Volusia Orthopedic
Medical Office Volusia Orthopedic as of 7.15.16 Development on our Land
Slide 32: Top Institutional Shareholders
Shareholder Shares % Wintergreen Advisers LLC 1,543,075 26.47 BlackRock Institutional 314,059 5.39 Dimensional Fund Advisors, Inc. 186,668 3.20 Vanguard Group, Inc. 184,619 3.17 Carlson Capital LP 167,028 2.87 Fenimore Asset Management 158,459 2.72 Andalusian Capital Partners, LP 138,395 2.37 Northe
Slide 33: Experienced Team
John P. Albright President and CEO Archon Capital, a Goldman Sachs Company Morgan Stanley Crescent Real Estate Equities 2011 Mark E. Patten Senior Vice President and CFO Simply Self Storage CNL Hotels & Resorts Vistana Inc. KPMG 2012 Daniel E. Smith Senior Vice President – General Counsel and Corpor
Slide 34: Board of Directors
Director Since John P. Albright President & Chief Executive Officer of the Company 2012 John J. Allen President of Allen Land Group, Inc. 2009 Jeffry B. Fuqua Chairman of the Board of the Company and President of Amick Holdings, Inc. 2009 William L. Olivari Certified Public Accountant and Partner of
Slide 35: Well-Positioned Land
Well-Positioned Land as of June 30, 2016
Slide 36: Footnotes
Footnotes Debt amount includes the face value of the Convertible Notes outstanding as of June 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 the likeli
Slide 37: 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 writing the
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