Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Consolidated Tomoka Land — Investor Presentation (November 2015)
49 slides from Cto Realty Growth's investor presentation, Nov 24, 2015
Slide 1: Plenty of Runway Ahead: 3rd Quarter 2015 Investor Presentation
Plenty of Runway Ahead (NYSE MKT: CTO) 3rd Quarter 2015 Investor Presentation Published: November 23, 2015 Exhibit 99.1
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: A Snapshot: Modest Leverage = Positioned for Growth
CTO: 2015 Share Performance (1) -10.7% RMZ Index: 2015 Index Performance (1) -4.2% CTO: Stock Price (as of November 18, 2015) $54.17 Equity Market Capitalization (as of November 18, 2015) $322.1 Total Debt (2) $154.9 Other Liabilities $47.0 Total Enterprise Value (Equity Market Cap as of November 18
Slide 4: A Snapshot: Asset Rich
Land & Subsurface 10,500+ acres (All in City of Daytona Beach, FL) 490,000± acres Subsurface Interests (2 operating wells with royalty income) Income Properties (1) 1.7 million Square Feet of Owned Real Estate 41 Single-Tenant and Multi-Tenant Income Properties: 33 Single-Tenant Income Properties (p
Slide 5: Strategy Focused on Shareholder Returns
Monetizing Land$22.9mm in sales (170+ acres) (1) last 4 years, $134k/acre Transformative Deals76.5 acres sold - 630,000 sq ft distribution center 38.93 acres sold - 350,000 sq ft outlet shopping center Investment in IncomeInvested approx. $183.2mm in 24 properties, 7 new states Growing Cash FlowPosi
Slide 6: Share Price Performance
Share Price Performance As of November 17, 2015 (adjusted for dividends)
Slide 7: Stock Performance (YE 2011 through 10/30/15)
Stock Performance (YE 2011 through 10/30/15) CTO Total Return since 12/30/11: 90.29% New Management team since Aug 2011 $27.00 stock price at Aug 2011
Slide 8: Annual Results for 2011 – 2014 and YTD Q3 2015
Total Revenues ($000’s) Operating Income ($000’s) Annual Results for 2011 – 2014 and YTD Q3 2015 2011 2012 2013 2014 YTD Q3 2015 2011 2012 2013 2014 YTD Q3 2015 Basic Earnings Per Share Positive Trends Book Value Per Share
Slide 9: Increasing Cash Flows
Increasing Cash Flows INCOME PROPERTIES Revenues Direct Cost of Revenues Net Operating Income ($’s in millions) $13.4 2.3 $11.1 $15.0 2.0 $13.0 Q3 YTD 2015 FY 2014 COMMERCIAL LOAN INVESTMENTS Revenues Direct Cost of Revenues Net Loan Interest Income $1.8 0.0 $1.8 $2.2 0.0 $2.2 REAL ESTATE OPERATIONS
Slide 10: Monetizing our Land – Executing our Strategy
Monetizing our Land– Executing our Strategy Annual Land Sales for 2005 – YTD 2015 (1) (Land Sales in $000’s) As of November 20, 2015
Slide 11: G&A Expenses – Efficiently Operated
G&A Expenses – Efficiently Operated ($’s in millions) Managing Overhead Costs Annual Results for 2012 thru 2014 and YTD Q3 2015 2012 2013 2014 YTD Q3 2015 Reported G&A $6.6 $5.4 $7.0 $6.1 Less: Adjustments (1) Stock Compensation (2) (1.0) (0.9) (1.3) (1.4) Environmental Reserves (3) (0.7) - (0.1) (0
Slide 12: Balance Sheet - Highlights as of September 30, 2015
Balance Sheet - Highlights as of September 30, 2015 Avg Basis for 10,500 acres of Land = $3,700/acre (1) Basis in Subsurface Interests $0 per acre Def Tax Liability on 1031 Deferred Gains $41.3 million 110,000 Shares Bought Back Book Value $22.08/outstanding share Excludes approx. $11.3 million attr
Slide 13: Income Producing Investments Geographic Exposure
Location of Loan Investments (also one in PR) Number of Income Property Investments CTO Headquartered in Daytona Beach, FL 1 3 9 3 18 1 1 1 1 3 Income Producing Investments Pro Forma includes acquisition of Wells Fargo Building on November 18, 2015 and excludes Vero Beach CVS sold on November 20, 20
Slide 14: Income Properties Top Single Tenants by Rent
Income Properties Top Single Tenants by Rent As of November 20, 2015 Approx. 53.7% of rent income from Investment Grade tenants Pro Forma includes acquisition of Wells Fargo Building on November 18, 2015 and excludes Vero Beach CVS sold on November 20, 2015 Guaranteed by Holiday CVS, L.L.C. a wholly
Slide 15: Top Income Properties
Income Properties Top 10 Income Properties (2)(3) Tenant Type Market Property Type Remaining Lease Term Sq. Feet Wells Fargo Building Single Tenant Raleigh Office 9.1 450,393 245 Riverside Multi-Tenant Jacksonville Office 5.8 136,853 Hilton Vacation Ownership Single Tenant Orlando Office 6.2 133,914
Slide 16: 2015 Acquisition: Wells Fargo Building (Raleigh, NC)
2015 Acquisition Income Properties Core Investment Wells Fargo Building (Raleigh, NC) Single-Tenant $42.3mm Investment Single-Tenant Class A Office Acquired @ low end of investment yield guidance Rent @ 50% below market Investment basis - $94/sq. ft. or approx. 50% below replacement cost 9.1 years w
Slide 17: 2015 Acquisition: Riverside (Jacksonville, FL)
2015 Acquisition Income Properties Core Investment 245 Riverside (Jacksonville, FL) Multi-Tenant $25.1mm Investment Class A Office Above mid-point of investment yield guidance Strong Retail/Residential development activity in area Investment basis ($185/sq ft) below replacement cost 5.4 years weight
Slide 18: 2015 Acquisition: The Container Store (Glendale, AZ)
2015 Acquisition Income Properties Above mid-point of investment yield guidance 14.7 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
Slide 19: 2014 Acquisition: Whole Foods Market Centre (Sarasota, FL)
2014 Acquisition Income Properties Core Investment At low end of investment yield guidance 7.1 years weighted average remaining on leases 59,341 Square Feet - 95% 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- Cr
Slide 20: 2014 Acquisition: Lowe's (Katy, TX)
2014 Acquisition Income Properties Core Investment At low end of investment yield guidance 12.8 years remaining on lease A- Credit 3-mi Pop. 97,925 3-mi Avg HHI $98,939 131,644 Square Feet Approx. 15.5 acres Lowe’s (Katy, TX) Single-Tenant $14.7mm Investment
Slide 21: 2014 Acquisition: Grove at Winter Park
2014 Acquisition Income Properties Opportunistic Investment Approx. 112,000 sq ft 14.35 acres 548 Parking Spaces 3-mi Pop. 93,236 3-mi Avg HHI $59,994 Currently negotiating lease with national tenant to take 39k sq foot anchor space Currently negotiating lease with national tenant for 1.25 acre outp
Slide 22: Self-Developed Properties
Self-Developed Properties: weighted average occupancy 91% Income Properties as of September 30, 2015 Concierge Office 22,000 sq. ft. Year Built: 2009 100% leased Major Tenants Merrill Lynch KB Homes Mason Commerce Center 31,000 sq. ft. Year Built: 2009 100% leased Major Tenants State of Florida Will
Slide 23: 2015 Dispositions – Exit Smaller Markets
2015 Dispositions – Exit Smaller Markets Income Properties Recycling Capital = Improving Portfolio Quality $21.2 million in Proceeds Location Remaining Lease Term Sale Date Sales Price Total Gain/(Loss) PSF (1) Sanford, FL (Dark) 8.7 yrs Apr 2015 $3.2 ($0.2) $231.7 Sebastian, FL (Dark) 8.7 yrs Apr 2
Slide 24: Where does the Stock Market Value our Land?
Land Holdings Where does the Stock Market Value our Land? As of September 30, 2015 (unless otherwise noted) 5% increase in Actual Market Value per Acre vs Implied Value = Appreciation in CTO Share Price of approx. $1.69/Share Every $5mm in value attributed to subsurface reduces implied land value by
Slide 25: Harvesting Value: Completed Land Transactions
Land Holdings Sold 20.96 acres $30k/ac | October 2014 Harvesting Value: Completed Land Transactions (1) Sold 170.7 Acres = Average Gross Price » $134k/acre (2) DISTRIBUTION CENTER VICTOR INDIGO LAKES LLC Sold 75.60 acres $103k/ac | August 2014 Sold 3.06 acres $128k/ac | February 2014 Sold 2.02 acres
Slide 26: Harvesting Value: Potential Land Transactions
Land Holdings WEST OF I-95 Potential Transaction 1 Buyer: Minto Communities Approx. 1,600 acres Potential Transaction 2 Approx. 17 +/- acres EAST OF I-95 Potential Transaction 3 Approx. 73 +/- acres Potential Transaction 4 Buyer: Sam’s Club Approx. 18 +/- acres Potential Transaction 5 Buyer: North A
Slide 27: Potential Land Sale – Minto Communities
Land Holdings Potential Land Sale – Minto Communities Approximately 1,600 Acre Parcel Age-Restricted Planned Residential Community Across from LPGA International Golf Club 3,400+/- single-family homes Golf-cart friendly lifestyle Resort-style town center with clubhouse, restaurants, and recreational
Slide 28: Tomoka Town Center
18.0 +/- Acres 38.93 Acres 23.77 Acres 100.8 Acres 4.39 Acres Land Holdings Tomoka Town Center Approximately 185.9 Total Useable Acres
Slide 29: 2015 Land Sale – Tanger Outlets
Land Holdings 2015 Land Sale – Tanger Outlets Transformational Transaction SALES PRICE $9.7 MILLION 38.93 Acres Sold November 2015 Upscale Outlet Shopping Center Estimated development cost - $100mm 350,000 square feet 80-90 Retail Stores No restaurant/F&B retail w/in the Outlet Center Projected 400
Slide 30: Potential Land Sale – Sam's Club
Land Holdings Potential Land Sale – Sam’s Club There can be no assurances regarding the likelihood or timing of this potential transaction, or if it occurs, the final terms including sales price Approximately 18.0 +/- Acre Parcel Retail Use: Warehouse Club Membership Only Retail Warehouse
Slide 31: Potential Land Sale – Integra Land Co.
Land Holdings Potential Land Sale – Integra Land Co. Approximately 14.0 +/- Acre Parcel Multi-Family Rental Community Estimated 260+ rental apartments Received planning/entitlement approvals There can be no assurances regarding the likelihood or timing of this potential transaction, or if it occurs,
Slide 32: 2014 Land Sale – Distribution Center
2014 Land Sale – Distribution Center SALES PRICE $7.8 MILLION 630,000 sq ft refrigerated facility 76.5 Acres Estimated 450 jobs Land Holdings Stock Cars Aren’t the Only Things that Move Fast in Daytona Q3 2014 – Development Starts Q2 2015 – Facility Opens
Slide 33: Real Estate Venture – Ocean Front Property
Land Holdings Real Estate Venture – Ocean Front Property There can be no assurances regarding the likelihood or timing of a potential sale or other transaction related to this land, or if a transaction does occur, the final terms including sales price 6.04 Acre Parcel on Daytona Beach 3.63 Developab
Slide 34: Commercial Loan Investments
Loan Investments Commercial Loan Investments As of September 30, 2015 $10.0mm Mezzanine Loan Dallas, TX Rate: LIBOR + 725 Maturity: Sept. ‘16 $9.0mm B-Note Sarasota, FL Rate: LIBOR + 750 Maturity: June ‘16 $5.0mm Mezzanine Loan Atlanta, GA Rate: 12% fixed Maturity: Feb ‘19 $38.5 million invested Wgt
Slide 35: Commercial Loan Investments Returns
Loan Investments Commercial Loan – Investments Returns Strong Risk-Adjusted Yields As of September 30, 2015 Completed Loan Investment Location Loan Amount Term (2) (Years) IRR Mortgage Loan – Glenn Hotel Atlanta, GA $17.5 0.4 39.39% Construction Loan – Container Store Glendale, AZ $6.2 1.1 7.81% Mor
Slide 36: Subsurface Interests
Approximately 95% of total subsurface acres Remaining 5% of total subsurface acres ü ü ü ü ü ü Counties with active or historic oil/gas production (1) ü ü Subsurface Interests Subsurface Interests (490,000 Acres) Average success rate for wells drilled in Florida between 1995-2008 was 77% (1) Revenue
Slide 37: Liquidity and Leverage as of September 30, 2015
Liquidity and Leverage as of September 30, 2015 Liquidity Position (excluding restricted cash) ($ in 000’s) Leverage Position ($ in millions) Total Commitment of Credit Facility = $75 million Amount outstanding is face value of the Convertible Notes 30-Day LIBOR plus 135-225 bps Maturity includes fi
Slide 38: 2015 Guidance
Guidance (1) YTD Q3 2015 Earnings per share (on a fully diluted basis) $1.45 - $1.70/ share $0.46/share Acquisition of Income-Producing Assets $70mm - $90mm $96.2mm (2)(3) Target Investment Yields (Initial Yield – Unlevered) 6% - 8% Disposition of Non-Core Income Properties $7mm - $15mm $21.2mm (3)
Slide 39: Share Repurchase Program – Activity since 2012
Share Repurchase Program – Activity since 2012 Year Shares Repurchased Investment Average Price/Share 2012 14,634 $453,654 $31.00 2014 25,836 $927,913 $35.92 2015 (1) 70,236 $3,857,600 $54.92 Totals/ Average 110,706 $5,239,167 $47.33 Total Authorized Share Repurchase Program$8.0 million Total Author
Slide 40: Shareholder Friendly
Shareholder Friendly Share repurchases: approx. 110,706 shares since 2012 ($5.2 million) Board of Directors reduced to 7 in 2014 from 11 in 2011 Increased dividend since 2011 – from $0.04 to $0.08 per share (annualized) Annual election of Directors (eliminated staggered elections) in 2012 Implemente
Slide 41: Top Institutional Shareholders
Top Institutional Shareholders (1) Source: Bloomberg as of November 17, 2015 Shareholder Shares % Wintergreen Advisers LLC 1,543,075 25.96 BlackRock Institutional 351,441 5.91 Dimensional Fund Advisors, Inc. 183,331 3.08 Vanguard Group, Inc. 175,757 2.96 Andalusian Capital Partners, LP 164,389 2.77
Slide 42: 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 43: New Businesses and Investment: Rising Tide Lifts All Boats
New Businesses and Investment Rising Tide Lifts All Boats Non-Stop service between JFK and Daytona Beach starting January 2016 New Public Company (NYSE: BLD) $1B Market Cap 7,800 employees worldwide (Approx. 360 local employees) Publicly Traded REIT (NYSE: SKT) Owner/Operator of Upscale Outlet Shopp
Slide 44: Vibrant Business Environment
A B C G D F I L E O K Q N R Business/Employment Highlights Vibrant Business Environment Consolidated-Tomoka Land Co. (NYSE: CTO) 14 S P H J DIST – Distribution; HC – Healthcare; HM – Home Bldg; INS – Insurance, RET - Retail MFG – Manufacturing, O&G – Oil & Gas; UNIV – University; SPRT – Professional
Slide 45: 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
Slide 46: Appendix
Appendix cr CONSOLIDATED TOMOKA
Slide 47: Well-Positioned Land as of November 12, 2015
Well-Positioned Land as of November 12, 2015
Slide 48: Well-Positioned Land
Well-Positioned Land
Slide 49: FLORIDA HOSPITAL
2 2 FLORIDA HOSPITAL 9 ‘MemonlAL MEDICAL CENTER 75 acres cre ONSOLIDATED Oe TomMoKA
Consolidated Tomoka Land — Investor Presentation (November 2015) on 6ix