Exhibit 99.1
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(NYSE MKT: CTO) Quarter Investor 3rd 2016 Presentation Published: October 19, 2016 |
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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,” “intend,” “anticipate,” “will,” “could,” “may,” “should,” “plan,” “potential,” “predict,” “forecast,” “project,” and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made. Although forward-looking statements are made based upon management’s expectations and beliefs concerning future Company actions and developments and their potential effect upon the Company, a number of factors could cause the Company’s actual results to differ materially from those set forth in the forward-looking statements. Such factors may include uncertainties associated with the closing of pending land transactions or other dispositions of assets, including the likelihood, timing, and final transaction terms thereof, the estimate of the cost of completing infrastructure work affiliated with certain land transactions and the impact on the total estimated gain, as well as the timing of the recognition of that gain, our ability to obtain necessary governmental approvals for our land transactions or to satisfy other closing conditions, the ability to execute share repurchase transactions, the ability for the Company to convert to a real estate investment trust, as well as the uncertainties and risk factors discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, filed with the Securities and Exchange Commission. There can be no assurance that future developments will be in accordance with management’s expectations or that the effect of future developments on the Company will be those anticipated by management. Endnote references (A) through (M) provided in this presentation are defined on Slide 54 2 |
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CTO at a Glance As of September 30, 2016 (unless otherwise noted) Company Founded 1910 Shares Outstanding 5,745,514 Dividend Level $0.04/share – Quarterly Number of Employees 14 Share Price (as of October 14, 2016) $50.03 3 Earnings per Share (year-to-date)$1.96 52 week Stock Price Range$60.09 - $42.53 Board of Directors8 Dividend HistoryPaid Since 1976 Public CompanySince 1969 Corporate HeadquartersDaytona Beach, FL |
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Snapshot As of September 30, 2016 (unless otherwise noted) (1) Equity Market Cap Debt (A) $287.4 million $141.3 million Total Enterprise Value (‘TEV’) (1) (A) Cash (including 1031 restricted cash) Leverage (net debt to TEV) (1) (A) $428.7 million $ 12.1 million 30.1% LAND HOLDINGS INCOME PROPERTIES LOAN INVESTMENTS SUBSURFACE INTERESTS Book Value $0 (1) As of October 14, 2016 (2) The Subsurface Sale agreement was subsequently amended to allow for certain portions of the Interests to be excluded from the Subsurface Sale and retained by the Company, with a corresponding reduction in transaction price. Subsequent to September 30, 2016, LVP provided the Company with a propos al to significantly reduce the Interests covered by the Subsurface Sale. Income Liquidity Asset Rich 4 10,500 Acres Undeveloped Land 29 Properties >1.5 million sq. ft Retail & Office 3 Loans Hotel & Retail ≈500,000 Acres With 4,100 Acres Under Contract $98.5mm (1)(B) NOI = $16.3 million(H) Value @ 6.5% Cap Rate = $252mm Avg. Yield 8.8% $24 million Under Contract ≈$24.0 million (B)(2) OPERATINGSEGMENTS |
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(L) How Low does Stock As of September 30, 2016 (unless otherwise noted) Market Value our Land? Total Adjusted Enterprise Value (TAEV)(1) (A) $484mm Net TAEV Attributable to Remaining 6,400 Acres of Land (“Remaining Acres”) (1) (A) $54mm Net TAEV per Acre Attributable to Remaining Acres (1) (A) $8,438 per Acre (1) As of October 14, 2016 (2) The Subsurface Sale agreement was subsequently amended to allow for certain portions of the Interests to be excluded from the Subsurface Sale and retained by the Company, with a corresponding reduction in transaction price. Subsequent to September 30, 2016, LVP provided the Company with a proposal to significantly reduce the Interests covered by the Subsurface Sale. 5 Net TAEV per Acre Attributable to Remaining Acres (excluding 1031 Def Tax Liab.) (1) (A) $(313) per Acre Remaining Acres 6,400 Less: Income Properties (Value @ 6.5% cap rate on NOI) Less: Contract Amount for Subsurface Interests (B)(2) Less: Basis in Commercial Loan Investments Less: Cash & 1031 Restricted Cash Less: Value of Impact Fees (M) & Mitigation Credits, Golf, and Other Assets Net TAEV Attributable to Land (1) Less: Value of Land Pipeline Contracts (4,100 acres @ approx. $24k/acre) (1) (B) ($252mm) ($24mm) ($24mm) ($12mm) ($19mm) $153mm ($99mm) Equity Market Cap [closing price $50.03] (1) $287mm Debt (A) $141mm 1031 Tax Deferred Liabilities$56mm |
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Components of As of September 30, 2016 (unless otherwise noted) Value (L) ($ in 000’s) Multi-Tenant 3,882 Subsurface (Contract Value) (B)(5) 24,000 Total NOI $16,375 Impact Fees (1)(M) 2,700 Infrastructure Reimbursements (1) (4) 6,500 Cash and 1031 Restricted Cash (1) 12,100 East of I-95 [1,000 acres] (3) Industrial (West of [1,000 acres] (3) I-95) 1. 2. 3. Book value of asset(s) and liabilities except as noted Rounded to nearest $100,000 Value estimates could be derived using the average sales price per acre achieved since 2012 as outlined on Slide 12 and indicated values on Slide 15 Total infrastructure costs to be reimbursed for land sales closed within the Tomoka Town Center as of September 30, 2016. Total estimated infrastructure costs equals approximately $12.8 million of which approximately $12.5 million will be reimbursed if all land sales close relating to the Tomoka Town Center. Approximately $600,000 of $12.8 million is remaining to be incurred. See Footnote (2) on Slide 5 Payables, Accrued Liabilities, etc. (1) 9,900 4. Deferred Tax Liability (1) 56,100 5. Note: Total shares outstanding as of September 30, 2016 = 5,745,514 6 Total Liabilities$207,900 Est. Remaining Infrastructure Costs (4) 600 Total Land Values(3) Liabilities (2) Debt (A) $141,300 West of I-95[4,400 acres](3) Other Asset Components$78,800 Golf Assets (1) 2,300 Land Portfolio Under Contract (B) [4,100 acres] $98,500 Value @ 6.5% Cap Rate$252mm Mitigation Credits (1) 1,400 Billboards200 Beach Real Estate Venture (1) 5,800 Income Properties - NOI (H) Single-Tenant$12,293 Other Asset Components (2) Commercial Loan Portfolio (1) $24,000 |
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(1) Share Price Performance 1 year, 3 year and 5 years ended September 30, 2016 (adjusted for dividends) 1.Source: Bloomberg as of October 17, 2016 Comparative Performance 7 Symbol 1 year 3 years 5 years 5 yr. Annualized CTO 3.0% 33.7% 96.5% 14.5% REIT Index RMZ 19.8% 48.5% 108.2% 15.8% Russell 2000 RTY 15.4% 21.5% 108.4% 15.8% JOE -3.9% -6.3% 22.6% 4.1% TRC 11.5% -14.4% 5.1% 1.0% FOR -11.0% -45.6% 7.3% 1.4% ADC 73.3% 92.7% 201.9% 24.7% STAR -14.7% -10.9% 84.4% 13.0% |
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(1) Share Price Appreciation Price Appreciation based upon a theoretical investment of $100 ADC EPR 11/20/15 O STOR SRC NNN LXP CTO 1.Source: Bloomberg as of July 15, 2016 Versus Single Tenant REITs 8 Theoretical $100 Investment |
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3rd Highlights - Quarter & Subsequent Events Income Property Operations Completed $77.4 million in acquisitions at weighted average cap rate of 6.16% Closed on Sale of 14 asset portfolio (see Slide 36): $51.6mm, $11.4mm gain, exit cap rate of 4.73% Sold non-core (vacant) income property (Altamonte Springs, FL) - $3.0mm, exit cap of 9.5% Real Estate Operations Sold 4.5 acre sale to Minto for their Sales Center Sold 17 acres (Commercial buyer – West of I-95) in October 2016: $3.0mm, $174k/acre Kerogen continued lease for 6th year: $957,000 lease and drilling penalty payment Sold $1.2mm in Impact Fees in October 2016 Corporate Repurchased 54,719 shares of CTO stock, approx. $2.7mm, average price/share $49.10 Appointed Laura M. Franklin – New Director Implemented/Amended Governance & Compensation Policies Progress and Momentum 9 |
Positive Trends Annual Results for 2012 – 2015 and YTD Q3 2016 Total Revenues Basic Earnings Per Share ($000’s) 2012 2013 2014 2015 YTD Q3 2016 Operating Income ($000’s) Book Value Per Share 2012 2013 2014 2015 YTD Q3 2016 10 |
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Monetizing ourLand Annual Land Sales for 2005 – 2015 and YTD 2016 & Pipeline as of 10/14/16 (B) Note: Multi-family included in residential (Land Sales in $000’s) 2012 – YTD 2016 Total Sales $40.4mm Avg. Price/Acre $149k Average Price/Acre Residential Commercial Total Total Acres Sold $ $ $ 20,665 140,116 107,754 336.0 $ $ $ 100,000 96,340 96,535 214.5 $ $ $ 18,480 166,392 47,468 486.5 $ $ $ - 174,669 174,669 24.4 $ $ $ - 158,307 158,307 15.8 $ $ $ - - - - $ $ $ - - - - $ $ $ - 37,133 37,133 16.6 $ $ $ - 256,542 256,542 11.7 $ $ $ - 86,952 86,952 99.7 $ $ $ 151,894 204,939 197,571 114.0 $ $ $ - 186,820 186,820 29.1 $ 24,289 ≈4,100 Executing Our Strategy 11 Land Holdings |
Analysis As of October 14, 2016 of Price per Acre – Sales Since 2012 + Pipeline West of I-95 East of I-95 East of I-95 408.24 $ 64,250 $ 157.4 West of I-95 Total 3,914.51 $ 73,309 $ 18.7 4,322.75 $ 137,559 $ 31.8 Residential Commercial Total 3,959.48 363.27 $ $ 71,642 65,918 $ $ 18.1 181.5 4,322.75 $ 137,559 $ 31.8 Heavily discounted by Market 12 Average Price Per Acres Sales Price Acre Average Price Per Acres Sales Price Acre Sales Price and Price Per Acre ($ in 000’s) Under Contract (B) Land Holdings |
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Potential Land As of October 14, 2016 Sales (B) Commercial/Retail 2 7 3 Total Potential 4,100 Sales = approx. $98.5mm Acres $24k/acre 13 1 6 5 4 Contract/Parcel Acres Contract Amount Price per Acre (rounded) Timing Minto (AR Residential) 1 1,581 $28.7mm $18,000 ’16 – ‘17 Minto (AR Residential) 2 1,686 $31.4mm $19,000 ’18 - ‘19 ICI (SF Residential) 3 600 $9.0mm $15,000 ’16 – ‘17 North Amer. Dev Grp 4 82 $20.2mm $248,000 ’17 – ‘18 Commercial/Retail $1.2mm $294,000 ‘18 5 4 Mixed-Use Retail 22 $5.6mm $253,000 ’17 Commercial/Retail 6 $1.5mm $245,000 ’17 SF Residential 73 $1.0mm $14,000 ’17 Totals/Average 4,100 $98.5mm $24,000 8 7 6 8 SF – Single Family; AR – Age Restricted Total Acres East of I-95 Approx. 1,200 acres Total Acres West of I-95 Approx. 9,300 acres Land Holdings |
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Status of Large Land Deals Under Contracts (B) Minto Communities Under Contract 1,581 Acres (Oasis Daytona) Pending Wetlands Permit North American Dev. Sold/Under Contract Group 42 Acres Purchased/82 Acres Under Contract Pre-Leasing Underway Working on Rezoning & Site Plan Application ICI Homes (B) Under Contract 600 Acres (Bayberry II) Working on Entitlements from City of Daytona Beach Pending Wetlands Permit 14 Land Holdings |
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(B) Potential Land Absorption – West of I-95 F 1,053 Acres A B E C Acres $20k/acre U/C I/P – Under Contract – In Process D 15 600 2,366 Acres 1,581 Acres 1,686 Acres Contract ParcelUseStatusTimingAmount/Value Estimate AResidentialU/C‘18-’19$31.4mm B ResidentialU/C‘16-’17$28.7mm CResidentialU/C‘16-’17$9.0mm D ResidentialN/AN/A$10k-$20k/acre EMitigation BankI/PTBD$5k-$12k/acre F ResidentialN/ATBD$15k-Land Holdings |
- CO:-.!SOLIDAl ED 16 •• TO IOKA |
Portfolio Land Holdings Well-Positioned Land: Industrial Parcel - CO:-.!SOLIDAl ED 17 •• TO IOKA |
Portfolio Land Holdings Well-Positioned Land: North of LPGA -CONSOLIDATED (Ill TO IOKA 18 |
(B) Real Estate Venture – Property Summary Beach Front Property Gross Site Area Developable acres Beach frontage 6.04 Acres 3.63 Acres 505 feet Venture Transaction Summary Approximately $5.7mm initial investment 50% ownership interest in venture CTO earns base management fee CTO receives 9% preferred interest Entitle Property for Vertical Development Exploring Interim Uses Opportunistic Investment 19 Land Holdings |
Income As of October 14, 2016 Producing Investments Total Portfolio NOI as of 10/14/16 = $18.6mm (1) Based on NOI Approx. 36% NOI from Credit Tenants 20 SINGLE-TENANT 66% MULTI-TENANT 34% OFFICE 50% RETAIL 50% Portfolio Mix(1)(H) Largest Markets (1)(H) City % of NOI Raleigh 18.3% Santa Clara 12.6% Orlando 10.2% Jacksonville 9.3% Atlanta 7.2% All Other 42.4% Income Properties |
Income Property Portfolio (G)(H) Single-Tenant Portfolio As of October 14, 2016 Wells Fargo AA-Raleigh, NC Office 450,393 8.0 $2,760,909 Hilton Grand Vacations Lowe's CVS Harris Teeter Container Store At Home Rite Aid Dick's Sporting Goods Best Buy Big Lots Barnes & Noble Walgreens Big Lots Walgreens Bank of America Outback Outback Outback Carrabas Total Single Tenant NR A-BBB+ NR NR B B NR BB NR NR BBB NR BBB A BB BB BB BB Orlando, FL Katy, TX Dallas, TX Charlotte, NC Phoenix, AZ Raleigh, NC Renton, WA McDonough, GA McDonough, GA Glendale, AZ Daytona Beach, FL Alpharetta, GA Germantown, MD Clermont, FL Monterey, CA Charlottesville, VA Charlotte, NC Austin, TX Austin, TX Office Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail 133,914 131,644 10,340 45,089 23,329 116,334 16,280 46,315 30,038 34,512 28,000 15,120 25,589 13,650 32,692 7,216 6,297 6,176 5.2 10.3 25.4 11.6 13.4 13.0 9.8 7.3 4.3 6.3 1.3 9.1 7.3 12.5 4.2 15.0 15.0 15.0 $1,559,446 $917,000 $685,000 $677,250 $630,315 $620,380 $558,139 $551,250 $427,500 $365,400 $364,467 $362,880 $358,246 $327,600 $295,249 $282,250 $201,967 $189,641 Retail 6,528 15.0 $158,307 1,179,456 9.7 $12,293,196 Strong Cash Flow 21 S&P Credit PropertyRentable Remaining Tenant/Building Rating Location TypeSquare Feet Lease Term NOI Income Properties |
Income Property As of October 14, 2016 Portfolio (G)(H) Multi-Tenant Portfolio 245 Riverside Ave Whole Foods Centre Concierge Mason Commerce (Flex) 7-11/Dallas Pharmacy Williamson Bus.Park Grove at Winter Park Total - Multi-Tenant Class A N/A Class B Class B N/A Class B N/A Jacksonville, FL Sarasota, FL Daytona Beach, FL Daytona Beach, FL Dallas, TX Daytona Beach, FL Winter Park, FL Office Retail Office Office Retail Office 136,856 59,341 22,012 30,720 4,685 15,360 4.5 6.9 2.9 4.3 8.0 7.8 $1,717,811 $1,168,651 $395,642 $384,343 $136,000 $80,000 Retail 112,292 - - 457,107 5.3 $6,214,945 Strong Cash Flow 22 Acquired October 14, 2016 3600 Peterson Class A Santa Clara, CA Office 75,841 5.5 $2,332,498 Property Rentable Remaining Tenant/Building Class Location Type Square Feet Lease Term NOI Income Properties |
Fastest Growing MSA’s in U.S. As of August 2016 1 Orlando-Kissimmee-Sanford 4.4% 1,213 4 properties 3 San Jose – Sunnyvale – Santa Clara 3.6% 1,087 1 property 5 Denver – Aurora – Lakewood 3.2% 1,455 7 Portland – Vancouver - Hillsboro 2.9% 1,145 9 Charlotte – Concord – Gastonia 2.6% 1,133 1 property 11 Miami – Ft. Lauderdale – West Palm Bch 2.4% 2,559 13 Phoenix – Mesa – Scottsdale 2.3% 1,946 2 properties 15 Riverside – San Bernardino – Ontario 2.3% 1,376 Exposure to High Growth Markets 23 14Baltimore – Columbia – Towson2.3%1,400 12San Francisco – Oakland – Hayward2.4%2,331 10Washington DC – Arlington - Alexandria2.4%3,2461 property 8Atlanta – Sandy Springs – Roswell2.7%2,6682 properties 6Tampa – St. Petersburg - Clearwater3.1%1,288 4Dallas – Ft. Worth – Arlington3.4%3,5322 properties 2Seattle-Tacoma-Bellevue3.7%1,9741 property RankMSAGrowth RatePopulation SizeCTO Investments Income Properties |
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2016 Acquisition 3600 Peterson (Santa Clara, CA) $30.0mm Investment Class A Office 100% Leased Tenancy: Two tenants 5.53 year lease term 75,841 Square Feet 5.24 Acres Single Story Complete ($14mm) renovation in 2014 Potential FAR of 177,000 Sq Ft Potential for Additional Density 24 Income Properties |
2016 Acquisition 3600 Peterson (Santa Clara, CA) $30.0mm Investment Boston Properties Well Located in Growth Market 25 Menlo Equites & Beacon Capital The Campus In April of 2016 Purchased 3625 Peterson Way for $78 MM / $358 In June of 2016 LeEco acquired a 48.6 acre site from Yahoo for $250 MM Income Properties |
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2016 Acquisition CVS Ground Lease (Dallas, TX) $14.9mm Investment Acquired with 25 years of lease term remaining 10,340 Square Feet S&P credit rating: BBB+ 0.91 Acres New construction, built in 2016 Potential FAR of 400,000 sq. feet of vertical development 3-Mile Demographics Population: 177,625 Avg. HH income: $89,619 Redevelopment Opportunity 26 Income Properties |
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2016 Acquisition Bloomin Brands NNN Sale Leaseback ( TX, NC, VA) $14.9mm Investment Acquired all properties with new 15 year lease terms 26,217 rentable square feet S&P credit rating: BB 7.92 Acres Huntersville, NC Charlottesville, VA 3-Mile Demographics - Portfolio Population: 73,217 Avg. HH income: $88,036 Austin, TX Performing Assets Austin, TX Strong Good Markets 27 Income Properties |
2016 Acquisition At Home NNN Lease (Raleigh, NC) $9.2mm Investment Acquired with 13+ years of lease term remaining 116,334 Square Feet S&P credit rating: B 10.64 Acres Built in 1995 3-Mile Demographics Population: 88,281 Avg. HH income: $68,037 Basis Low Rent Low 28 Income Properties |
2016 Acquisition Bank of America Ground Lease (Monterey, CA) $8.4mm Investment 4.2 years of lease term remaining 32,692 Square Feet S&P credit rating: A 1.26 Acres Built in 1982 Potential Redevelopment with zoning for up to 4 stories 3-Mile Demographics Population: 61,735 Avg. HH income: $93,610 Redevelopment Potential 29 Income Properties |
Potential Redevelopment Opportunities Bank of America Monterey, CA Bank of America Branch Two Story 1.26 Acres Up to 4 stories Beach Parcel Daytona Beach, FL Beachfront Land Vacant 6.04 Acres 750,000+ SF 30 Wells FargoAdditional Raleigh, NC40.33 Acres450,000 SF Office250,000 SF 3600 Peterson Way76,000 SF OfficeApproximately Santa Clara, CA5.24 AcresSingle Story177,000 SF CurrentPotential PropertySite SizeImprovementsDevelopment CVS/PharmacyCVSApproximately Dallas, TX0.91 AcresSingle Story400,000 SF Income Properties |
Portfolio Highlights (Raleigh, NC) Single-Tenant $42.3mm Investment Single-Tenant Class A Office Rent @ 50% below market Investment basis - $94/sq. ft. or approx. 50% below replacement cost 8.0 years remaining on lease Rent Escalation in 2019 450,393 Square Feet Investment Grade Tenant: Wells Fargo Bank N.A. (AA-) Approx. 40.0 acres Potential to add 250,000 sq. feet Wells Fargo 31 Income Properties |
Portfolio Highlights (Jacksonville, FL) Multi-Tenant $25.1mm Investment Class A Office Strong Retail/Residential development activity in area Investment basis ($185/sq ft) below replacement cost 4.5 years weighted average remaining on leases 100% Occupied 136,856 Square Feet Former St. Joe Headquarters built in 2003 245 Riverside 32 Income Properties |
Portfolio Highlights (Glendale, AZ) Single-Tenant $8.6mm Investment 13.4 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 renovation of mall announced by Macerich Container Store 33 Income Properties |
Portfolio Highlights (Sarasota, FL) Multi-Tenant $19.1mm Investment 6.9 years weighted average remaining on leases 59,341 Square Feet - 100% 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-Credit 9 yrs remaining on lease @ acquisition 23,000 square feet of ground floor retail 455 space parking garage Shoppes at Sarasota Row 34 Income Properties |
14Asset Portfolio – Sold Bank of America - Laguna Beach, CA Bank of America Bank of America Bank of America Bank of America Bank of America Bank of America Bank of America Bank of America Bank of America Walgreens Walgreens JPMorgan Chase CVS Buffalo Wild Wings Single Tenant Single Tenant Single Tenant Single Tenant Single Tenant Single Tenant Single Tenant Single Tenant Single Tenant Single Tenant Single Tenant Single Tenant Single Tenant Single Tenant Garden Grove, CA Westminster, CA Laguna Beach, CA Walnut, CA La Habra, CA Mission Viejo, CA Mission Viejo, CA Los Alamitos, CA Yorba Linda, CA Boulder, CO Palm Bay, FL Chicago, IL Tallahassee, FL Phoenix, AZ Sales Price (I) $51.6 million 4.73% $11.4 million $1.20/share Exit Cap Gain Rate EPS (net of tax) Portfolio NOI $2.45 million Harvesting Value Reinvest/Replace NOI 35 14-Property Portfolio TenantTenant TypeMarket Income Properties |
Opportunistic Investment The Grove at Winter Park (Winter Park, Approx. 112,000 sq ft 35% Leased 14.35 acres 548 Parking Spaces 3-mi Pop. 93,236 3-mi Avg HHI $59,994 FL) $3.1mm Investment (multi-tenant) Negotiating LOI’s on 20,000 sq. feet of infill space Virtually Vacant When Acquired Potential Stabilized NOI - $1.3mm 36 20 yr lease term Est. Q4 ‘17 opening 39k sq foot anchor space 15 yr lease term Est. Q1 ‘17 opening Anchor Income Properties |
How our Income Property Portfolio Compares With Triple-Net REITs 1. 2. Source: National broker reports Top 3 based on NOI (H) Top 3 Locations Cap Rate (1) Top 3 Tenants (2) Rating Term TEV Wells Fargo Hilton Grand Vacations Lowe’s AA-NR A-North Carolina California Florida N/A 8.2 30.1% Bank of America Lifetime Fitness Amazon A B AA-Texas Illinois California 6.4% 7.6 37.3% Shopko 84 Lumber Walgreens NR NR BBB Texas California Illinois 6.1% 10.7 40.8% Walgreens FedEx Dollar General BBB BBB BBB California Texas Florida 4.4% 9.8 24.7% Peer Average Superior Portfolio Quality 37 5.8%10.531.6% American Multi-CinemaB Regal CinemasB+ 6.6%TopgolfNR12.7N/A32.4% SunocoBBBTexas Mister Car WashBFlorida 5.5%LA FitnessN/A11.4Ohio28.2% WalgreensBBBMichigan WalmartAAFlorida 5.7%WawaNR10.9Ohio26.2% ImpliedTenant CreditAverage LeaseDebt+Pref/ Income Properties |
Transformation of our Portfolio – 2011 vs 2016 3600 Peterson Santa Clara, CA CVS Tallahassee, FL At Home Raleigh, NC CVS Clermont, FL CVS Melbourne, FL Big Lots Germantown, MD Carrabas Austin, TX CVS Sebastian, FL CVS Dallas, TX CVS Clermont, FL Lowe's Katy, TX RBC (PNC) Altamonte Springs, FL Outback Charlottesville, VA Walgreens Palm Bay, FL Rite Aid Renton, WA Walgreens Orlando, FL Whole Foods Centre Sarasota, FL Walgreens Powder Springs, GA Grove at Winter Park Total Properties Acquired/Developed Winter Park, FL 21 Total Properties Sold 18 Barnes & Noble Best Buy Concierge Dick's Sporting Goods Harris Teeter Mason Commerce (2 Properties) Walgreens Walgreens Legacy Portfolio Daytona Beach, FL McDonough, GA Daytona Beach, FL McDonough, GA Charlotte, NC Daytona Beach, FL Clermont, FL Alpharetta, GA Barnes & Noble Best Buy Concierge Dick's Sporting Goods Harris Teeter Mason Commerce (2 Properties) Walgreens Walgreens Legacy Portfolio Daytona Beach, FL McDonough, GA Daytona Beach, FL McDonough, GA Charlotte, NC Daytona Beach, FL Clermont, FL Alpharetta, GA 9 9 Total Portfolio 30 Total Portfolio 27 Stronger Markets Tenant Diversity 38 Williamson Business Park Daytona Beach, FL Wells Fargo Raleigh, NC Walgreens Apopka, FL Outback Charlotte, NC Walgreens Kissimmee, FL Outback Austin, TX RBC (PNC) Orlando, FL Hilton Grand Vacations (2 properties) Orlando, FL Lowe's Lexington, NC Container Store Phoenix, AZ CVS Clermont, FL Big Lots Glendale, AZ CVS Sanford, FL Bank of America Monterey, CA CVS Sebring, FL 7-11/Dallas Pharmacy Dallas, TX CVS Sanford, FL Property Location Barnes & Noble Lakeland, FL As of 10/14/16 Property Location 245 Riverside Ave Jacksonville, FL As of YE 2011 Income Properties |
Commercial Loan As of September 30, 2016 Investments $24.0 million invested Wtd. Avg. Rate 8.8% SOUTHGATE MALL GLENN HOTEL DFW HYATT $9.0mm B-Note Sarasota, FL Rate: LIBOR + 750 Maturity: June ‘17 $10.0mm Mezzanine Loan Dallas, TX Rate: LIBOR + 725 Maturity: Sept. ‘17 $5.0mm Mezzanine Loan Atlanta, GA Rate: 12% fixed Maturity: Feb ‘19 Opportunity to Monetize 39 Loan Investments |
(A) Liquidity and Liquidity Position (excluding restricted cash) ($ in 000’s) Leverage As of September 30, 2016 97% of Debt at Fixed rate as of September 30, 2016 Debt Schedule ($ in millions) Credit Facility Convertible Notes CMBS Loan CMBS Loan Mortgage Loan Total $ 58.8 - - - $ 4.0 75.0 30.0 7.3 2.77% (3) 4.50% 4.33% 3.66% 1.8 3.5 18.1 (4) 1.4 - 25.0 3.17% (5) 4.6 $ 58.8 $ 141.3 4.14% 6.6 1031 Restricted Cash Balance approximately $3.1 million 1. 2. 3. 4. 5. Total Commitment of Credit Facility = $75 million Amount Outstanding at face value for Convertible Notes Stated rate = 30-Day LIBOR plus 135-225 bps Maturity includes first 10 years I/O Variable Rate Mortgage Loan fixed with Interest Rate Swap Attractive Debt Rates and Duration 40 Borrowing BaseAmountMaturity in Capacity (1)Outstanding (2)RateYears |
(E) REIT Conversion Benefits for Shareholders Potential Valuation Uplift Enhance Cash Flows Expand Shareholder Base Tax Efficient, Substantially Eliminate Corporate Taxation Paid Taxes - $1.2mm (’15), $3.0mm (’14), $1.6mm (‘13) Dedicated REIT investors, ETF and Index Fund buyers, and Income Oriented Investors Issuance of stock for up to 80% for E&P distribution Increased Liquidity Other Considerations E&P Distribution Taxed dividend to shareholders [generally capital gain rate] Eliminate 1031 Deferred Tax Liability at Conversion Impact = approx. $56.1mm OR $9.76/share) Book Value Impact Action Steps Key Steps Earnings/Profits analysis –PROCESS RESUMED Regulatory ruling on 80% stock in E&P distribution Merge with Maryland C-Corp (Form S-4); Shareholder vote Targeting Jan 1, 2018 41 |
(C)(J) Share Repurchase Program New Share Repurchase Program (Authorized in ‘15) $10.0 million Q1 2016 28,862 $1,339,613 $46.41 Q2 2016 33,889 $1,658,922 $48.95 Prior Share Year Repurchase Program (Authorized in ‘08) $8.0 million Average Price/Share Shares Repurchased Investment Increased Pace 42 2008-2016164,533$7,971,058$48.45 Q3 2016 (through 10/17/16)54,719$2,687,063$49.10 YTD 2016117,470$5,685,598$48.40 Remaining Program Amount$4,343,343 Shares YearRepurchasedInvestmentAverage Price/Share |
2016 Guidance – Status As of September 30, 2016 (unless otherwise noted) Update Acquisition of Income-Producing Assets (B)(1) $70mm - $85mm $79.8mm Disposition of Income Properties (B)(K)(1) $15.0mm - $25mm (K) $22.7mm (K) Land Transactions (sales value) (B)(1) $25.0mm - $35.0mm $5.4mm (1) As of October 14, 2016 (2) Reported earnings per share. Earnings per share guidance provided in February 2016 excluded the gain on the disposition of the Portfolio Sale which equaled $1.20 per share, therefore for comparison to the Company’s earnings per share guidance the earnings per share would equal $0.76 per share. 43 Leverage Target (as % of Total Enterprise Value)< 40%< 30.1% Target Disposition Yields (K)(1)7.00% - 10.00%8.20% Target Investment Yields (Initial Yield – Unlevered) (1)6% - 8%6.14% 2016 GuidanceYTD Q3 2016 Earnings per share (K)$2.75-$3.00/share$1.96/share(2) |
Development on our Land Development Update Land Sold by CTO (F) Tanger Factory Outlet Grand Opening – November 18, 2016 Integra Sands Apartments (F) Pre-Leasing set to begin December Under Construction – Complete by Grand Opening October 2016 Site Planning for Power Center Pre-Leasing underway Awaiting submission of Site Plan 2016 (F) TopBuild Headquarters Q1 2017 CarMax (F) North American Dev. Group Sam’s Club Progress & Development 44 |
evelopment on our Land Tanger Outlets as of 1 0.15. 16 Tanger· Outrets Grand Opening Nov 2016 - CO:-.!SOLIDAl ED •• TO IOKA D Daytona |
Daytona Development on our Land Integra as of 1 0.15.1 6 INTEGRA LAND COMPANY Multi-Family Moving In 46 |
Daytona Land TopBuild as of 10.15.16 Public Company Headquarters coNsOLIDA1FD TO IOKA 47 Development on our |
evelopment on our Land CorMax as of 1 0. 15. 1 6 • I . October ' 16 Grand Opening - CO:-.!SOLIDAl ED •• TO IOKA D Daytona |
Daytona evelopment on our Land Orthopedic Clinic of DB as of 10.15.16 Orthopaedic Clinic of Daytona Beach Medical Office - CO:-.!SOLIDAl ED 49 •• TO IOKA D |
Top InstitutionalShareholders Shareholder Wintergreen Advisers LLC (1) Shares 1,543,075 % 26.62 BlackRock Institutional 308,343 5.32 Northern Trust Corporation 295,443 5.10 Carlson Capital LP 192,028 3.31 Vanguard Group 188,135 3.25 Dimensional Fund Advisors 186,668 3.22 Fenimore Asset Management 158,459 2.73 State Street Corp 76,558 1.32 Cardinal Capital Management 61,446 1.06 UBS 57,315 0.99 Fidelity Management & Research 55,750 0.96 TOP SHAREHOLDERS 3,123,220 53.88% 50 1.Source: Bloomberg as of October 12, 2016 |
Experienced Team Started with Company • Morgan Stanley • Morgan Stanley • Cobb Cole 14 Full-Time Employees 51 John P. Albright President and CEO • Archon Capital, a Goldman Sachs Company • 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 Corporate Secretary • Goldman Sachs Realty Management • Crescent Real Estate Equities • Hughes & Luce LLP (now part of K&L Gates) 2014 Steven R. Greathouse Senior Vice President – Investments • N3 Real Estate • Crescent Real Estate Equities 2012 Teresa J. Thornton-Hill Vice President - Corporate Counsel • ICI Homes • Rogers Towers, P.A. 2005 E. Scott Bullock Vice President of Real Estate • International Speedway Corporation • Crescent Resources (Duke Energy) • Pritzker Realty Group • Disney Development Company (Walt Disney Co.) 2015 |
Board of Directors 52 Director Since John P. Albright President & Chief Executive Officer of the Company 2012 John J. Allen President of Allen Land Group, Inc. 2009 Laura M. Franklin Executive Vice President, Accounting & Administration of Washington REIT 2016 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 Olivari and Associates 2008 Howard C. Serkin Chairman of Heritage Capital Group, Inc. 2011 A. Chester Skinner, III Vice Chairman of the Board of the Company and President of Skinner Bros. Realty Co. 2010 Thomas P. Warlow, III President & Chairman - The Martin Andersen-Gracia Andersen Foundation, Inc. 2010 |
Well-Positioned as of September 30, 2016 Land - CO:-.!SOLIDAl LD 53 •• TO IOKA |
Endnotes A. B. Debt amount includes the face value of the Convertible Notes outstanding as of September 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 likelihood or timing of executing the Company’s share repurchase program $0.04 per share dividend per quarter represents $0.16 per share on an annualized basis which would be an increase of 100% from the prior annual dividend of $0.08 per share through May of 2016 There can be no assurances regarding the likelihood or timing of the Company converting to a Real Estate Investment Trust or the ability to obtain certain tax rulings related to the distribution of earnings and profits Completion dates for construction are based on publicly available information Excludes 14 properties included in the portfolio sale outlined on Slide 35 Net operating income calculated as of September 30, 2016 = Rental income less direct costs of revenues and includes: (i) annualized rents and costs for acquisitions in 2015 & 2016 plus (ii) billboard income and does not include revenues and costs for any income properties sold in 2015 & 2016, and excludes non-cash items including impact of straight-line rent and amortization of lease intangibles. Sales price includes buyer’s assumption of $23.1 million mortgage loan secured by the properties As of the date of this presentation the Company meets the required coverage ratio in the Credit Facility for repurchases of stock and anticipates, subject to customary restrictions on share repurchases, to be able to continue to make repurchases under the $10 million program Does not include potential disposition of 14 properties on Slide 35 and Subsurface Interests transaction noted on Slide 3 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 shall be closed or the timing or final terms thereof. Sold approximately $1.2 million of impact fees on October 18, 2016 C. D. E. F. G. H. I. J. K. L. M. 54 |
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 corporate secretary at the address above, or at www.ctlc.com. Explore Daytona at www.exploredb.com 55 |