Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Consolidated Tomoka Land — Investor Presentation (February 2020)
44 slides from Cto Realty Growth's investor presentation, Feb 13, 2020
Slide 1: 2020 Vision: 2019 Year-End Investor Presentation
2020 VISION 2019 YEAR-END INVESTOR PRESENTATION CARPENTER HOTEL, AUSTIN, TX 93 ROOMS WELLS FARGO, RALEIGH, NC 450,393 SF FIDELITY BUILDING, ALBUQUERQUE, NM 210,067 SF ASPEN CORE, ASPEN, CO 19,596 SF 24-HOUR FITNESS, FALLS CHURCH, VA 46,000 SF GENERAL DYNAMICS INFO TECH, RESTON, VA 64,319 SF
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS 2 650Ksf This presentation has been prepared by Consolidated-Tomoka Land Co. (“we,” “us,” “our,” “CTO” or the “Company”) solely for informational purposes. This presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities. Certain s
Slide 3: Our Focus
OUR FOCUS 3 650Ksf Crossroads Towne Center 254,109 SF Multi-Tenant Power Center Anchored by Harkins Theaters Chandler, Arizona Single-Tenant Office 450,393 SF Wells Fargo Office Raleigh, North Carolina We are a real estate investment company with a focus on owning, operating and investing in real es
Slide 4: Our Company Today
OUR COMPANY TODAY 5 Transitioning Into More Opportunistic, Total Return Real Estate Company Income Properties 35 Properties $32.7mm NOI (B) Cash + 1031 Cash ≈$65mm 1031 Cash Loan Investments 4 Loans - ≈$22mm Principal 11.2% Wtd. Avg. Rate Investment in Alpine REIT 22.3% Ownership Joint Venture Inves
Slide 5: CTO By The Numbers
CTO BY THE NUMBERS 6 We are a Total Return Real Estate Company FIDELITY, ALBUQUERQUE NM 210,067 SF WELLS FARGO, RALEIGH NC 450,393 SF GENERAL DYNAMICS INFO TECH, RESTON, VA 64,319 SF THE STRAND, JACKSONVILLE FL 212,402 SF 11 INCOME PROPERTIES 2.0M AS OF FEBRUARY 5, 2020 (UNLESS OTHERWISE NOTED) $32.
Slide 6: CTO Growth – Keys to Success
7 CTO GROWTH – KEYS to SUCCESS Nearing Goal of Transition to Income Investments PROJECTED TO HAVE > $3.00/SHARE (After Tax) IN FREE CASH FLOW FOR 2020 (H) 22.3% OWNERSHIP IN PUBLICLY TRADED SINGLE-TENANT NET LEASE REIT 5-YEAR EXTERNAL MANAGEMENT CONTRACT CASH FLOW GROWTH (H) ALPINE REIT (NYSE: PINE)
Slide 7: Why Invest in CTO?
8 WHY INVEST IN CTO? Diversified Real Estate Platform High growth Growing NAV Investor Friendly Generating Cash Flow Dividend Growth Profile Geographically Diverse Portfolio Earnings Cash Flow Multiple Revenue Streams High Growth Potential Paid Annually since 1976 Multi-Tenant Loan Investment Fees F
Slide 8: Overview of CTO
9 OVERVIEW OF CTO Growing Cash Flows – Growing Net Asset Value LOAN INVESTMENTS $22mm NAV $2.4mm NOI MANAGEMENT SERVICES PINE REIT LAND JV INCOME PROPERTIES $508mm NAV $32.7mm NOI (B) EQUITY INVESTMENTS $39mm Invested in PINE 22.3% of PINE o/s Equity OTHER ASSETS Downtown DB Land Mineral Interests &
Slide 9: Management Services Business
10 MANAGEMENT SERVICES BUSINESS [NYSE: PINE] IPO Date Nov. 2019 Share o/s 9.127mm CTO Ownership 22.3% Equity Mkt. Cap $173mm Manager CTO Strategic Focus Single-Tenant Net Lease Research Coverage Raymond James, RW Baird, B. Riley FBR, D.A. Davidson Quarterly Dividend $0.20/share YTD 2020 Investments
Slide 10: Track Record of Results
TRACK RECORD OF RESULTS 11 650Ksf ’15 – ’18 CAGR 12% ’15 – ’18 CAGR 23% ’15 – ’18 CAGR 74% ’15 – ’18 CAGR 21% ($000’s) Annual Results : 2015 – 2019 ($000’s) (1) Basic Earnings per Share including from discontinued operations (2) Annual Results as of December 31 Total Revenues (3) Operating Income (3
Slide 11: Cash Flow Growth
CASH FLOW GROWTH (1) (H) 12 650Ksf Generating Significant Cash Flow For the Fiscal Years-Ended Potential 25+% Net Cash Flow Growth in 2020 ASSUMING NO SIGNIFICANT CHANGE TO OTHER ELEMENTS Actual 2016 Actual 2017 Actual 2018 Actual 2019 Projected 2020 Income Property NOI (2) $17,172 $21,323 $28,207 $
Slide 12: Liquidity and Leverage
LIQUIDITY AND LEVERAGE 13 650Ksf Liquidity Position ($000’s) Debt Schedule ($ millions) Total Commitment of Credit Facility = $200 million Amount Outstanding at face value for Convertible Notes Stated rate = 30-Day LIBOR plus 135-195 bps Maturity includes first 10 years I/O Variable Rate Mortgage Lo
Slide 13: Returning Capital to Shareholders: Dividends
RETURNING CAPITAL to SHAREHOLDERS 14 650Ksf Annualized Dividend per Share % increase in Dividend 50% 17% 14% 50% 50% 50% CAGR: 35% 63% 127% Dividends(F) 2012 Through 2019 and Q1 2020 Increasing Dividend – Paid Quarterly $0.75 $1.00 Actual Projected $0.04 $0.06 $0.07 $0.08 $0.12 $0.18 $0.27 $0.44 $0.
Slide 14: Returning Capital to Shareholders: Share Buybacks
RETURNING CAPITAL to SHAREHOLDERS 15 Share Buybacks(A)(C) Annual Investments From 2013 Through 2019 $ Repurchased ($ in millions) % of CTO Shares outstanding 0.4% 2.0% 2.6% 2.4% 3.0% 12.7% Includes repurchase of 320,741 shares on 4/10/19 from CTO’s largest shareholder, which was completed outside of
Slide 15: 2020 Guidance
2020 GUIDANCE 16 650Ksf FY2020 Guidance Acquisition of Income-Producing Assets $160mm - $210mm Target Investment Yield (Initial Yield – Unlevered) 6.25% - 7.25% Disposition of Income Properties $40mm - $60 mm Target Disposition Yield 6.50% - 7.50% Leverage Target (as % of Total Enterprise Value) 40%
Slide 16: Income Portfolio
17 INCOME PORTFOLIO Total Square Feet(2) States ≈2.0 11 Total Properties Annualized NO I(1)(C) 35 $32.7 Stronger Markets – Stronger Tenants – Stronger Demographics Geographic Diversity Portfolio Mix (1) $ in millions (2) Square feet in millions FL 37% TX 16% NC 13% NM 12% VA 9% CO 5% WA 2% Other 4%
Slide 17: Appendix: Overview of Select Assets
18 APPENDIX OVERVIEW OF SELECT ASSETS
Slide 18: Top Assets by NOI
19 TOP 5 ASSETS by NOI (B) Diverse Portfolio of Tenants – Strong Markets Property & Tenant/Anchor Location 1 The Strand Jacksonville, FL 2 Crossroads Town Center Phoenix, AZ 3 Fidelity Office Albuquerque, NM 4 Wells Fargo Office Raleigh, NC 5 245 Riverside Jacksonville, FL
Slide 19: Income Property Listing
20 INCOME PROPERTY LISTING Tenant/Building Location Property Type Asset Type Rentable Square Feet % of NOI Crossroads Phoenix, AZ Retail Multi-tenant 254,109 15.0% The Strand Jacksonville, FL Retail Multi-tenant 212,402 14.7% Fidelity Albuquerque, NM Office STNL 210,067 10.4% Wells Fargo Raleigh, NC
Slide 20: Income Property Listing
21 INCOME PROPERTY LISTING Tenant/Building Location Property Type Asset Type Rentable Square Feet % of NOI Big Lots Germantown, MD Retail STNL 25,589 1.1% Big Lots Glendale, AZ Retail STNL 34,512 1.1% Chuys Jacksonville, FL Retail STNL 7,950 1.1% Wawa Jacksonville, FL Retail STNL 6,267 1.1% Walgreen
Slide 21: The Strand – Jacksonville, FL
22 THE STRAND – JACKSONVILLE, FL MULTI-TENANT RETAIL ACQUIRED DECEMBER 2019 TOP 10 NOI PROPERTY Acquisition Price $62.7mm
Slide 22: Crossroads Towne Center – Chandler, AZ
23 CROSSROADS TOWNE CENTER – CHANDLER, AZ MULTI-TENANT RETAIL ACQUIRED JANUARY 2020 TOP 10 NOI PROPERTY Acquisition Price $61.8mm
Slide 23: Fidelity Office – Albuquerque, NM
SINGLE-TENANT OFFICE ACQUIRED OCTOBER 2018 24 FIDELITY OFFICE – ALBUQUERQUE, NM TOP 10 NOI PROPERTY Acquisition Price $44.0mm
Slide 24: Wells Fargo Office – Raleigh, NC
SINGLE-TENANT OFFICE ACQUIRED NOVEMBER 2015 25 WELLS FARGO OFFICE - RALEIGH, NC TOP 10 NOI PROPERTY Acquisition Price $42.3mm
Slide 25: 245 Riverside – Jacksonville, FL
MULTI-TENANT OFFICE ACQUIRED JULY 2015 26 245 RIVERSIDE - JACKSONVILLE, FL TOP 10 NOI PROPERTY Acquisition Price $25.1mm
Slide 26: 24 Hour Fitness – Falls Church, VA
SINGLE-TENANT RETAIL ACQUIRED MAY 2019 27 24 HOUR FITNESS – FALLS CHURCH, VA TOP 10 NOI PROPERTY Acquisition Price $21.3mm
Slide 27: Aspen Core – Aspen, CO
SINGLE-TENANT RETAIL ACQUIRED FEBRUARY 2018 28 ASPEN CORE – ASPEN, CO TOP 10 NOI PROPERTY Acquisition Price $26.5mm
Slide 28: General Dynamics – Reston, VA
SINGLE-TENANT OFFICE ACQUIRED JULY 2019 29 GENERAL DYNAMICS - RESTON, VA TOP 10 NOI PROPERTY Acquisition Price $18.6mm
Slide 29: The Carpenter Hotel – Austin, TX
99 YEAR GROUND LEASE ACQUIRED JULY 2019 THE CARPENTER HOTEL - AUSTIN, TX 30 TOP 10 NOI PROPERTY Acquisition Price $16.3mm
Slide 30: Lowe's – Katy, TX
SINGLE-TENANT RETAIL ACQUIRED APRIL 2014 31 LOWE’S - KATY, TX TOP 10 NOI PROPERTY Acquisition Price $14.7mm
Slide 31: Beach Restaurants – Daytona Beach, FL
SINGLE-TENANT RETAIL DEVELOPED JANUARY 2018 32 BEACH RESTAURANTS – DAYTONA BEACH, FL OTHER NOTABLE PROPERTIES Total Investment $18.5mm LAND ENTITLED for up to 1 MILLION SQ. FT. of VERTICAL DEVELOPMENT
Slide 32: Burlington – North Richland Hills, TX
SINGLE-TENANT RETAIL ACQUIRED NOVEMBER 2019 33 BURLINGTON – NORTH RICHLAND HILLS, TX OTHER NOTABLE PROPERTIES Acquisition Price $11.9mm
Slide 33: Westcliff – Fort Worth, TX
MULTI-TENANT RETAIL ACQUIRED MARCH 2017 34 WESTCLIFF- FORT WORTH, TX Downtown Ft. Worth OTHER NOTABLE PROPERTIES Acquisition Price $15.0mm
Slide 34: CVS – Dallas, TX
SINGLE-TENANT RETAIL ACQUIRED SEPTEMBER 2016 35 CVS - DALLAS, TX OTHER NOTABLE PROPERTIES Acquisition Price $14.9mm
Slide 35: Party City – Oceanside, NY
SINGLE-TENANT RETAIL ACQUIRED SEPTEMBER 2019 36 PARTY CITY - OCEANSIDE, NY OTHER NOTABLE PROPERTIES Acquisition Price $7.1mm
Slide 36: Big Lots – Germantown, MD
SINGLE-TENANT RETAIL ACQUIRED SEPTEMBER 2013 37 BIG LOTS - GERMANTOWN, MD OTHER NOTABLE PROPERTIES Acquisition Price $5.0mm
Slide 37: Wawa, Chase – Jacksonville, FL
SINGLE-TENANT RETAIL ACQUIRED OCTOBER 2018 38 WAWA, CHASE - JACKSONVILLE, FL OTHER NOTABLE PROPERTIES Acquisition Price $6.7mm SINGLE-TENANT RETAIL ACQUIRED OCTOBER 2018 Acquisition Price $5.4mm
Slide 38: Moe's, PDQ – Jacksonville, FL
SINGLE-TENANT RETAIL ACQUIRED OCTOBER 2018 39 MOE’S, PDQ - JACKSONVILLE, FL OTHER NOTABLE PROPERTIES Acquisition Price $2.3mm SINGLE-TENANT RETAIL ACQUIRED OCTOBER 2018 Acquisition Price $2.3mm
Slide 39: Downtown Land – Daytona Beach, FL
POTENTIAL LARGE-SCALE MIXED-USE DEVELOPMENT 40 DOWNTOWN LAND – DAYTONA BEACH, FL OTHER NOTABLE PROPERTIES Total Investment $5.7mm
Slide 40: Commercial Loan Investments
41 Loan Amount: $8.0mm Loan Type: First Mortgage Security: 72 +/- acre land parcel Rate: 12% Fixed Maturity: June 2020 Max Maturity: June 2022 Loan Type: Leasehold Mortgage Security: 93-key Boutique Hotel Rate: 11.5% Fixed Maturity: July 2020 $21.8 MILLION PORTFOLIO w/11.2% WTD. AVG. RATE Loan Amoun
Slide 41: Management Team
42 TERESA THORNTON-HILL Vice President & Corporate Counsel ICI Homes Cobb Cole Rogers Towers, P.A. E. SCOTT BULLOCK Vice President of Real Estate International Speedway Corporation Crescent Resources (Duke Energy) Pritzker Realty Group Disney Development Co. (Walt Disney Co.) JOHN P. ALBRIGHT Presid
Slide 42: Board of Directors
43 JOHN P. ALBRIGHT President & Chief Executive Officer Archon Capital, a Goldman Sachs Company Morgan Stanley Crescent Real Estate Equities HOWARD C. SERKIN (CTO VICE CHAIRMAN) Chairman, Heritage Capital, Inc. GEORGE R. BROKAW Managing Partner, Trail Creek Partners LP CHRISTOPHER W. HAGA Partner an
Slide 43: End Notes
44 650Ksf END NOTES End Notes references utilized in this presentation There can be no assurances regarding the likelihood or timing of future execution of the Company’s share repurchase program. Net operating income (“NOI”) relates to our Income Property Operations segment and is calculated based o
Slide 44: Contact Us
2020 VISION 2019 YEAR-END INVESTOR PRESENTATION CARPENTER HOTEL, AUSTIN, TX 93 ROOMS WELLS FARGO, RALEIGH, NC 450,393 SF FIDELITY BUILDING, ALBUQUERQUE, NM 210,067 SF ASPEN CORE, ASPEN, CO 19,596 SF 24-HOUR FITNESS, FALLS CHURCH, VA 46,000 SF GENERAL DYNAMICS INFO TECH, RESTON, VA 64,319 SF For addi
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