Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Consolidated Tomoka Land — Q2 2018 Earnings Presentation
24 slides from Cto Realty Growth's earnings presentation, Jul 18, 2018
Slide 1: Building on Our Success – 2nd Quarter 2018 Investor Presentation
BUILDING ON OUR SUCCESS NYSE American: CTO 2nd QUARTER 2018 INVESTOR PRESENTATION Hyman Ave. & Hunter St. Aspen, Colorado CVS Dallas, Texas The Beach Restaurants Daytona Beach, Florida Whole Foods Market Sarasota, Florida Lowe’s Katy, Texas 3600 Peterson Santa Clara, CA
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 July 16, 2018 (unless otherwise noted) Discount to NAV Organic Capital Source Portfolio Quality Trading at Meaningful Discount to NAV Land Sales Provide Organic Source of Capital Faster Income Growth (vs Peers) Focusing Portfolio Toward Net Lease Sector Strong Free
Slide 4: Track Record of Strong Operating Results
’12 – ’17 CAGR 40.7% ’12 – ’17 CAGR 115.6% ’12 – ’17 CAGR 137.3% ’12 – ’17 CAGR 11.0% ($000’s) TRACK RECORD OF STRONG OPERATING RESULTS CONSOLIDATED TOMOKA Annual Results for 2013 – 2017 and YTD Q2 2018 ($000’s) Consistent Growth in Key Metrics (1) Basic Earnings per Share (2) As of period end 4 Tot
Slide 5: Cash Flow Growth
CASH FLOW GROWTH(1)(I) CONSOLIDATED TOMOKA Significant Free Cash Flow Growth For the Fiscal Years-Ended 5 2015 2016 2017 2018 (I) Income Property NOI(2) $14,724 $17,172 $21,323 $27,500 Interest Income from Loan Investments 2,691 2,588 2,053 Cash Flows from Golf Operations(3) (721) (773) (864) Other
Slide 6: CTO Snapshot
CTO SNAPSHOT CONSOLIDATED TOMOKA A Lot More Income than Land Percentages based on values derived on NAV worksheet on Slide #7 36 Properties ≈2.1 million Sq. Ft. Retail and Office NOI $27.5 million (C) Subsurface Interests 460,000 Acres 1 Loan Yield 11% $3.0mm Principal Max Maturity – Aug 2018 5,5
Slide 7: NAV Worksheet
NAV WORKSHEET (A)(F)(I) CONSOLIDATED TOMOKA Indicative of Meaningful Discount in our Stock Price 7 Cap Rate on NOI (C) Contract amounts As of July 16, 2018 As of June 30, 2018 Excludes intangible lease liabilities (5) Excludes NOI for Grove at Winter Park Highlighted Components of NAV Basis for Valu
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 for 2011 – YTD Q2 2018 & Pipeline(A) as of 7/16/18 8 (1) 2011 – YTD Q2 2018 Total Sales $126.7mm Acres Sold 5,214 (2) Total Pipel
Slide 9: Pipeline of Potential Land Sales
PIPELINE OF POTENTAL LAND SALES(A) As of July 16, 2018 SF –Single Family; AR –Age Restricted, MF – Multi-Family MOB – Medical Office Bldg. Substantial Pipeline for Continued Growth to Income CONSOLIDATED TOMOKA 9 Total Acreage East of I- 95 1,000 Acres Total Acreage West of I-95 4,500 Acres 1 12
Slide 10: Income Property Investments
INCOME PROPERTY INVESTMENTS (1) Converting into Income ($000’s) Annual Acquisitions for 2011 – 2017, YTD Q2 2018 + 2018 Guidance (J) Diversified Markets Higher Quality Properties Remaining acquisitions at the mid-point of 2018 guidance range (J) Net of master tenant purchase contribution of $1.5 mil
Slide 11: Portfolio Highlights
PORTFOLIO HIGHLIGHTS As of July 16, 2018 CONSOLIDATED TOMOKA Transitioning to Single-Tenant Over Time 11 Portfolio Mix Annual NOI (C) ≈$27.5mm Wgtd. Avg. Lease Term 8.1 yrs. 13 States Square Feet ≈2.1mm High Quality & Diversified Portfolio 43% 57% Office Retail 70% 30% Single-Tenant Multi-Tenant
Slide 12: Portfolio Highlights
PORTFOLIO HIGHLIGHTS CONSOLIDATED TOMOKA As of July 16, 2018 Total Properties Annualized NOI (1) (C) Total Square Feet (2) Weighted Average Lease Term Investment Grade Tenants (H) Different Industries in Tenant Mix States Single Tenants >10% of NOI (C) 36 $27.5 ≈2.1 8.1 43% 16 13 1 Stronger Markets
Slide 13: Top Tenants Versus Peers
TOP TENANTS VERSUS PEERS CONSOLIDATED TOMOKA Better Real Estate Better Credit Bigger Discount 13 CTO info as of June 30, 2018 and Discount to NAV from B Reilly FBR S&P Investment Grade ratings % per tenant is as % of NOI for CTO, as of June 30, 2018, and % of Base Rent (for Agree, VEREIT, NNN, Realt
Slide 14: How CTO's Portfolio Stacks Up
HOW CTO’S PORTFOLIO STACKS UP CONSOLIDATED TOMOKA Stronger Demographics = Better Markets & Long-Term Real Estate 14 Three Mile Population(1)(3) Implied Cap Rate(2) 3-Mile Median Household Income(1)(3) 3-Mile Avg. Household Income(1)(3) CTO info as of July 2018 Peer implied cap rates info from Janney
Slide 15: Golf Operations
GOLF OPERATIONS CONSOLIDATED TOMOKA To Grow Membership Rooftops Will Make the Difference 15 Revenue Membership $ in Millions Transition to Arcis Golf Transition to Arcis Golf 307 355 366 391 406 410 0 100 200 300 400 500 2013 2014 2015 2016 2017 YTD Q2 2018 $5.07 $5.13 $5.24 $5.19 $5.10 $2.64 $- $1.
Slide 16: Liquidity & Leverage
LIQUIDITY & LEVERAGE CONSOLIDATED TOMOKA 72% of Debt at Fixed rate ≈70% Unsecured Weighted Average Rate =4.11% Average Duration 4.7 years As of June 30, 2018 Debt Schedule (E) ($ in millions) Liquidity Position ($ in 000’s) Total Commitment of Credit Facility = $150 million Amount Outstanding at fac
Slide 17: Returning Capital to Shareholders
RETURNING CAPITAL to SHAREHOLDERS (B)(D) CONSOLIDATED TOMOKA Cumulative From 2012 Through 7/16/18 Disciplined Approach to Returning Capital 17 Cumulative Shares Purchased Cumulative $ Repurchased ($ in millions) Aggregate Avg. Price/Share $51.14 Annualized Dividend per Share Consistent Approach – Ac
Slide 18: YTD Q2 '18 Actuals vs FY '18 Guidance
YTD Q2 ‘18 ACTUALS vs FY ‘18 GUIDANCE CONSOLIDATED TOMOKA Strong Start Recycling Capital 18 YTD 2018 Guidance YTD Q2 2018 Actuals Earnings Per Share (Basic) (1) (2) $7.25 - $8.25 $4.04 Acquisition of Income-Producing Assets $80mm - $120mm $26.5mm Target Investment Yield (Initial Yield – Unlevered) 5
Slide 19: Appendix
CONSOLIDATED TOMOKA 19 APPENDIX
Slide 20: Single-Tenant Portfolio
CONSOLIDATED TOMOKA (1) Two properties Single-Tenant Portfolio (C) APPENDIX 20 100% Occupied 100% Leased As of July 16, 2018 (1) (C) Tenant/Building S&P Credit Rating Location Property Type Rentable Square Feet Remaining Lease Term % of NOI Wells Fargo A+ Portland, OR Office 211,863 7.5 11.6% Wells
Slide 21: Multi-Tenant Portfolio
CONSOLIDATED TOMOKA Multi-Tenant Portfolio APPENDIX 21 (C) As of July 16, 2018 (C) Tenant/Building Class Location Property Type Rentable Square Feet Remaining Lease Term % of NOI 3600 Peterson NR Santa Clara, CA Office 75,841 3.8 8.7% 245 Riverside Ave N/A Jacksonville, FL Office 136,856 3.8 7.1% Wh
Slide 22: Appendix: The Map
APPENDIX CONSOLIDATED TOMOKA The Map 22
Slide 23: End Notes
END NOTES CONSOLIDATED TOMOKA 23 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 24: Contact Us
Hyman Ave. & Hunter St. Aspen, Colorado CVS Dallas, Texas The Beach Restaurants Daytona Beach, Florida Whole Foods Market Sarasota, Florida Lowe’s Katy, Texas 3600 Peterson Santa Clara, CA Contact Us Investor Relations: Mark E. Patten P: 386.944.5643 mpatten@ctlc.com Consolidated-Tomoka Land Co. 114
Consolidated Tomoka Land — Q2 2018 Earnings Presentation on 6ix