Exhibit 99.1
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| (NYSE MKT: CTO) 2016 Investor Day Presentation Published: December 1, 2016 |
| 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 67 All Financial Information pertaining to fiscal year 2016 is unaudited. This presentation supplements and updates certain portions of the Company’s Q3 Investor Deck (published October 21, 2016 and available on the Company’s website); however, in the event any of the information herein conflicts with information in the Q3 Investor Deck, the information herein shall be deemed to supersede such information in the Q3 Investor Deck. 2 |
| Investor Day Agenda Topic Speaker(s) Time Breakfast – SWOT Analysis Gregg Logan - RCLCO 8:30 a.m. – 9:00 a.m. CTO Presentation John Albright/Mark Patten 9:10 a.m. – 10:00 a.m. Bill Bullock - Minto Communities Robert McDaniel - Integra Land Co. Dick McNerney - Adams Cameron David Murphy - CBRE Jim Wiseman - Margaritaville Real Estate Market Panel 10:10 a.m. – 11:00 a.m. Kerry Karl – Volusia County Association for Responsible Development (VCard) Economic Development 11:00 a.m. – 11:30 a.m. Lunch - Property Tour 11:45 a.m. – 1:00 p.m. 3 |
| Snapshot As of November 30, 2016 (unless otherwise noted) Equity Market Cap Debt (A) Total Enterprise Value (‘TEV’) (A) Cash (including 1031 restricted cash) $305.5 million $171.6 million $477.1 million $ 3.8 million 35.2% (net debt to TEV) (A) Leverage LAND HOLDINGS INCOME PROPERTIES LOAN INVESTMENTS SUBSURFACE INTERESTS Book Value $0 (1) Includes approximately $200k of NOI from billboard leases Income Liquidity Asset Rich 4 10,500 Acres Undeveloped Land 31 Properties ≈1.7 million sq. ft Retail & Office 3 Loans Hotel & Retail ≈500,000 Acres With 4,200 Acres Under Contract $100mm (B) NOI = $19.2 million(H) (1) Value @ 6.5% Cap Rate = $295mm Avg. Yield 8.8% $24 million Renegotiating Contract OPERATINGSEGMENTS |
| (L) How Low does Stock As of November 30, 2016 (unless otherwise noted) Market Value our Land? Total Adjusted Enterprise Value (TAEV)(A) $534mm Net TAEV Attributable to Remaining 6,300 Acres of Land (“Remaining Acres”) (A) $92mm Implied Net TAEV per Acre Attributable to Remaining Acres (A) $14,603 per Acre (1) As of September 30, 2016 5 Implied Net TAEV per Acre Attributable to Remaining Acres (excluding 1031 Def Tax Liab.) (A)$5,714 per Acre Remaining Acres6,300 Less: Income Properties (Value @ 6.5% cap rate on NOI) Less: Contract Amount for Subsurface Interests Less: Basis in Commercial Loan Investments Less: Cash & 1031 Restricted Cash Less: Value of Impact Fees (M) & Mitigation Credits, Golf, and Other Assets (1) Net TAEV Attributable to Land Less: Value of Land Pipeline Contracts (4,200 acres @ approx. $24k/acre)(B) ($295mm) TBD ($24mm) ($4mm) ($19mm) $192mm ($100mm) Equity Market Cap [closing price $53.37]$306mm Debt (A)$172mm 1031 Tax Deferred Liabilities (1)$56mm |
| Focused on Shareholder Returns From 2012 Through November 30, 2016 (unless otherwise noted) Monetizing Land $40.4mm in sales (271 acres), $149k/acre Approx. $100mm under contract (4,200 acres, 40% of land) 76.5 acres sold - 630,000 sq ft Distribution Center [500 jobs] 38.93 acres sold - 350,000 sq ft Tanger Outlet Center [900 jobs] Invested approx. $280.4mm in 34 properties, 8 new states Over $12.4mm in revenues since 2012 Negotiating Monetization of components of portfolio Strong positive cash flow growth since 2012 Since 2014: $14.1mm,≈283k Shares @ Avg Price = $49.89/share Increased from $0.04/share semi-annual to $0.04/share quarterly Transformative Deals Investment in Income Subsurface Interests Growing Cash Flow Share Buyback (C) Dividend (D) 6 |
| Share Price (Adjusted for dividends) Performance August 1, 2011 through November 30, 2016 Source: Bloomberg New Management Delivering Shareholder Returns 7 Symbol Total Return Compounded Annual Return CTO 86.36% 12.37% S&P 500 SPX 91.76% 12.97% REIT Index RMZ 65.10% 9.85% Russell 2000 RTY 79.83% 11.62% |
| G&A Expenses – Annual Results for 2013 thru 2015 and YTD Q3 2016 Operating Efficiently ($’s in millions) (1) (2) (3) (4) (5) Adjustments for non-cash charges and certain non-recurring expenses Non-cash charge Incudes non-recurring environmental reserves ($500k for state environmental matter, $188k for federal environmental matter) and legal costs associated with each Pension charge in 2014 (Approx. $700k non-cash), severance primarily in 2013 and other non-recurring charges Utilizing Market Cap as of November 30, 2016 Efficient Operations14 Employees 8 % of Market Cap (5) 1.3% 2013 2014 2015 YTD 2016 Reported G&A $5.4 $7.0 $8.8 $8.5 Less: Adjustments (1) Stock Compensation (2) (0.9) (1.3) (2.2) (2.9) Environmental Reserves (3) - (0.1) (0.9) - Shareholder Matters - - (0.1) (1.3) Other G&A (4) (0.1) (0.9) (0.3) (0.2) G&A – Net of Adjustments $4.4 $4.7 $5.3 $4.1 |
| Land Holdings Acres A J F 750 L H Parcel Industrial K B G om FL Hospital Commercial E C D dditional Acreage I (1) Includes Option parcel of approximately 146 acres for $1.4mm Key Parcels 9 Parcel De scription Potential Use A Minto II B Minto I C ICI (1) Residential Residential Residential 1,686 1,581 D South LPGA Par E Mitigation Land F Parcel F cel Residential Residential 194 2,366 1,053 G TomoMka Town C enter - NADG Commercial 82 H NW Quadrant - I Industrial Park J Parcel Across fr K SE Quadrant - L L E of Williamson, Subtotal LPGA & I-95 Commercial Industrial PGA & Clyde Morris Commercial/Industrial N or LPGA Residential 238 865 83 130 200 9,228 Other Acreage E ast of I-95 Under Contract 105 Remaining Acrea Remaining Acrea Remaining Acrea Approximate A Total Acreage ge East of I-95 ge West of I-95 ge Industrial Under Contract (B) 362 385 210 285 10,575 Land Holdings |
| Potential Land As of November 30, 2016 Sales (B) Commercial/Retail 2 1) $18,000 7 1 3 3A (1) Contract amount may be reduced if Minto elects to not utilize Seller financing option Total Potential Sales 4,200 Acres = approx. $100mm $24k/acre 10 6 5 4 Contract/Parcel Acres Contract Amount Price per Acre (rounded) Timing Minto (AR Residential) 1 1,581 $28.7mm( ’16 – ‘17 Minto (AR Residential) 2 1,686 $31.4mm $19,000 ’18 - ‘19 ICI (SF Residential) 3 604 $9.0mm $15,000 ’16 – ‘17 ICI Option Parcel (SF) 3A 146 $1.4mm $10,000 ’16 – ‘17 North Amer. Dev Grp 4 82 $20.2mm $248,000 ’17 – ‘18 Commercial/Retail 4 $1.2mm $294,000 ‘18 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 4,200 $100mm $24,000 8 7 6 5 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 |
| (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 (1) Includes Option parcel of approximately 146 acres for $1.4mm 11 194 Acres 750 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$10.4mm (1) D ResidentialN/AN/A$10k-$25k/acre EMitigation BankI/PTBD$5k-$12k/acre F ResidentialN/ATBD$15k-Land Holdings |
| Potential Land Sales – Minto Communities (B) West of I-95 www.Minto.com Phase I 3,600 units ≈200k SF Commercial Age Restricted Residential 12 Land Holdings |
| Potential Land Sales – ICI Homes (B) West of I-95 1,000-1,200 Lots 604 acres @ $9MM 146 acres @ $1.4MM (1) (1) Option parcel Single-Family Residential 13 Land Holdings |
| (B) Mitigation Bank – Analysis of Opportunity Gross Site Area Development Costs Mitigation Credits Market Value of Credits 2,366 Acres $3mm - $5mm 350-450 UMAM $100k - $150k Investment Potential Land Value $12mm - $30mm $5k - $12.5k/acre $3mm - $5mm $15mm - $35mm $35mm - $64mm Est. Dev. Costs Total Est. Investment Potential Value of Credits Potential Activation Within 2 years 14 2,366 Acres West of I-95 Land Holdings |
| Portfolio Land Holdings North American Development Group (BJ Eastofi-95 IITOMOKA CONSOLIDATED Tomoka Town Center 15 Outrets Tanger |
| (B) North American Development Group East of I-95 Contractually Obli 8 ≈ 82 Acres under contract - $20.2mm 16 Acres Under Contract gated to Close no later than 201 (A) 23.77 Acres (A) 37.26 Acres [Closed Dec ‘15] 57.79 Acres Land Holdings |
| Well-Positioned Land: Industrial Parcels West of I-95 The value range is an estimate only and there can be no assurances that the value ultimately realized for this land will fall within the estimated range. Potential Value Range : $30k - $70k per Acre 17 Land Holdings |
| Land Highlights - East of I-95 East of I-95 A B C D E $150k-$275k $75k-$170k $50k-$125k $200k-$300k $100k-$200k B C A D E The value ranges are estimates only and there can be no assurances that the value ultimately realized for this land will fall within the estimated range. 18 Parcel Est. Value Range/Acre Land Holdings |
| Well-Positioned Land: North of LPGA East ofl-95 The value range is an estimate only and there can be no assurances that the value ultimately realized for this land will fall within the estimated range. IITOMOKA CONSOLIDATED Potential Value Range: $150k-$275k per Acre 19 |
| The value range is an estimate only and there can be no assurances that the value ultimately realized for this land will fall within the estimated range. II Potential Value Range: $120k-$150k per Acre DATED 20 |
| Well-Positioned Land: Distribution/Industrial East of I-95 The value range is an estimate only and there can be no assurances that the value ultimately realized for this land will fall within the estimated range. Potential Value Range : $80k - $125k per Acre 21 Land Holdings |
| Monetizing ourLand Annual Land Sales for 2005 – 2015 and YTD 2016 & Pipeline as of 11/30/16 (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 $ - $ - $ 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 $ 174,669 $ 174,669 24.4 $ 23,755 ≈4,200 Executing Our Strategy 22 Land Holdings |
| Analysis As of November 30, 2016 of Price per Acre – Sales Since 2012 + Pipeline West of I-95 East of I-95 East of I-95 West of I-95 Total 408.24 4,064.51 $ $ 64,250 74,709 $ $ 157.4 18.4 4,472.75 $ 138,959 $ 31.1 Residential 4,109.48 $ 73,042 $ 17.8 Commercial Total 363.27 $ 65,918 $ 181.5 4,472.75 $ 138,959 $ 31.1 Heavily discounted by Market 23 Average Price Per AcresSales PriceAcre Average Price Per AcresSales PriceAcre Sales Price and Price Per Acre ($ in 000’s) Under Contract (B) Land Holdings |
| (B) Beach Parcel – 6.04 Expected Opening of Restaurants – Q4 2017 Acres Near Term Investment Two 6,000 SF Restaurant Properties Investment in Land Estimated Development Costs Total Est. Investment $10.8mm $ 6.0mm $16.8mm Estimated 7%-11% Unlevered Yield 24 Land Holdings |
| (B) Beach Parcel – 6.04 Expected Opening of Restaurants – Q4 2017 Acres Near Term Investment Two 6,000 SF Restaurant Properties Restaurant Renderings 25 Land Holdings |
| (B) Beach Parcel – 6.04 Acres Long Term Development Opportunity Summary of Approved Entitlement Up to 900 Total Units 1.2mm square feet Potential Uses Timeshare Hotel Condominium Retail Parking Would Seek Developer for Opportunity high-rise/vertical Future Investment Option 26 Land Holdings |
| (B) Subsurface Interests (500,000 Acres) Was under contract for $24 million Currently renegotiating contract with potential buyer CTO owns full or partial interest in approximately 500,000 subsurface acres Approximately 95% of total subsurface acres Remaining 5% of total subsurface acres Counties with active or historic oil/gas production (1) Average success rate for wells drilled in Florida between 1995-2008 was 77% (1) (1) April ‘08 Report by US Depart of the Interior 27 County Acreage Osceola 145,136 Hendry 91,103 Lee 88,186 Okeechobee 35,326 Polk 32,793 Highlands 31,859 Taylor 22,512 St. Lucie 17,143 De Soto 12,274 All other counties 23,668 TOTAL 500,000 Subsurface Interests |
| Income As of November 30, 2016 Producing Investments Total Portfolio NOI as of 11/30/16 = $19.2mm (1) Based on NOI Approx. 33.8% NOI from Investment 28 Grade Tenants SINGLE-TENANT 65% MULTI-TENANT 35% OFFICE 52% RETAIL 48% Portfolio Mix(1)(H) Largest Markets (1)(H) City % of NOI Raleigh 18.1% Santa Clara 12.1% Orlando 10.0% Jacksonville 9.5% Atlanta 7.2% All Other 43.1% 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 Source: Bureau of Labor Statistics Exposure to High Growth Markets 29 Population in millions 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 |
| Income As of November 30, 2016 Property Portfolio (H) Single-Tenant Portfolio Wells Fargo AA-Raleigh, NC Office 450,393 7.8 $2,760,835 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 5.0 10.2 25.2 11.4 13.3 12.8 9.6 7.2 4.2 6.2 1.2 8.9 7.2 12.3 4.0 14.8 14.8 14.8 $1,539,837 $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 14.8 $158,307 1,179,456 9.5$12,273,513 Strong Cash Flow 30 S&P CreditPropertyRentableRemaining Tenant/BuildingRatingLocationTypeSquare FeetLease TermNOI Income Properties |
| Income As of November 30, 2016 Property Portfolio (H) Multi-Tenant Portfolio 3600 Peterson 245 Riverside Ave Whole Foods Century Theaters Concierge Mason Commerce (Flex) 7 Eleven Williamson Bus.Park Grove at Winter Park Total - Multi-Tenant Class A Class A N/A N/A Class B Class B N/A Class B N/A Santa Clara, CA Jacksonville, FL Sarasota, FL Reno, NV Daytona Beach, FL Daytona Beach, FL Dallas, TX Daytona Beach, FL Winter Park, FL Office Office Retail Retail Office Office Retail Office 75,841 136,856 59,341 52,474 22,012 30,720 4,685 15,360 5.3 4.1 4.1 3.0 2.5 4.3 7.5 7.8 $2,267,134 $1,763,968 $1,155,632 $591,420 $402,389 $329,313 $134,883 $80,103 Retail 112,292 - - 509,581 4.4 $6,724,842 Strong Cash Flow 31 Property Rentable Remaining Tenant/Building Class Location Type Square Feet Lease Term NOI Income Properties |
| 2016 Acquisition Highlights ($’s in millions) Multi-Tenant Office Santa Clara, CA $30.0 7.77% 5.3 75,841 Single-Tenant Raleigh, NC $9.2 6.75% 12.7 116,334 Multi-Tenant Reno, NV $6.9 8.57% 3.0 52,474 Single-Tenant Charlottesville, VA $5.0 5.60% 14.8 7,216 Single-Tenant Austin, TX $2.8 5.60% 14.8 6,528 Strong Long-Term Real Estate 32 Multi-TenantDallas, TX$2.55.53%7.44,685 Totals$86.76.33%9.8318,583 Single-TenantCharlotte, NC$3.65.60%14.86,297 Single-TenantAustin, TX$3.45.60%14.86,176 Single-TenantMonterrey, CA$8.43.50%3.932,692 Single-TenantDallas, TX$14.94.60%25.110,340 Yrs PurchaseCapRemaining on Tenant(s)Investment TypeLocationPriceRateLeaseSquare Feet Income Properties |
| 2016 Acquisition 3600 Peterson (Santa Clara, CA) $30.0mm Investment Single Story - Class A Office 100% Leased Tenancy: Two tenants 5.3 year weighted avg. remaining lease term 75,841 Square Feet 5.24 Acres Complete ($14mm) renovation in 2014 3% annual rent escalations Additonal 100,000 Sq Ft of development permitted Investment basis $395/Sq Ft Potential for Additional Density 33 Acquisition Cap Rate 7.77% Income Properties |
| 2016 Acquisition 3600 Peterson (Santa $30.0mm Clara, CA) Investment Boston Properties Well Located in Growth Market 34 Menlo Equites & Beacon Capital The Campus $600 PSF In April of 2016 Purchased 3625 Peterson Way for $78 MM / $358 PSF In June of 2016 LeEco acquired a 48.6 acre site from Yahoo for $250 MM Income Properties |
| 2016 Acquisition CVS Ground Lease (Dallas, TX) $14.9mm Investment 25 years of lease term remaining 10,340 Square Feet S&P credit rating: BBB+ 0.91 Acres New construction, built in 2016 Up to 400,000 sq. feet of development permitted Rent escalation 7.5% yr. 21 3-Mile Demographics Population: 177,625 Avg. HH income: $89,619 Covered Land Play Redevelopment Opportunity 35 Acquisition Cap Rate 4.60% Income Properties |
| 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 Rent escalations 1% per yr. 3-Mile Demographics - Huntersville, NC Charlottesville, VA Portfolio Population: 73,217 Avg. HH income: $88,036 Austin, TX Performing Assets Austin, TX Strong Good Markets 36 Acquisition Cap Rate 5.60% Income Properties |
| 2016 Acquisition At Home NNN Lease (Raleigh, NC) $9.2mm Investment Acquired with 13+ years of lease term remaining Basis of $79 per SF 116,334 Square Feet S&P credit rating: B 10.64 Acres Built in 1995 Rent escalations 2% per yr. 3-Mile Demographics Population: 88,281 Avg. HH income: $68,037 Low Basis Low Rent 37 Acquisition Cap Rate 6.75% Income Properties |
| 2016 Acquisition At Home NNN Lease (Raleigh, NC) $9.2mm Investment Low Basis Low Rent 38 Income Properties |
| 2016 Acquisition Bank of America Ground Lease (Monterey, CA) $8.4mm Investment 4.0 years lease term remaining 32,692 Square Feet S&P credit rating: A 1.26 Acres Built in 1982 >$220mm in deposits Renewal rate reset based on land value (Potential to increase yield to 7%-8%) 1 10yr Renewal Option Potential Redevelopment - zoned for up to 4 stories 3-Mile Demographics Population: 61,735 Avg. HH income: $93,610 Covered Land Play Redevelopment Opportunity 39 Acquisition Cap Rate 3.50% Income Properties |
| 2016 Acquisition Bank of America Ground Lease (Monterey, CA) $8.4mm Investment Redevelopment Potential 40 Income Properties |
| 2016 Acquisition Century Theatres (Reno, NV) $6.9mm Investment 3.0 years of lease term remaining 52,474 Square Feet 12 screens 1.39 Acres Built in 2000 Intense redevelopment activity in the market 3-Mile Demographics Population: 134,475 Avg. HH income: $51,821 Growing Market Below Replacement Cost 41 Acquisition Cap Rate 8.57% Income Properties |
| 2016 Acquisition Century Theatres (Reno, NV) $6.9mm Investment Rapidly Redeveloping Market 42 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 7.8 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 43 Acquisition Cap Rate 6.53% Income Properties |
| Portfolio Highlights (Raleigh, NC) $42.3mm Investment Wells Fargo 44 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 Outperforming Underwriting 245 Riverside 45 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 46 Acquisition Cap Rate 7.30% Income Properties |
| Portfolio Highlights (Sarasota, FL) Multi-Tenant $19.1mm Investment 6.9 years weighted average remaining on leases 59,341 Square Feet - 99% Occupied 3-mi Pop. 68,157 3-mi Avg HHI $63,561 36,000 SF (61% of property) leased to free standing Whole Foods Market BBB-Credit 9 yrs on lease @ acquisition 23,000 square feet of ground floor retail 455 space parking garage Outperforming Underwriting Shoppes at Sarasota Row 47 Income Properties |
| Portfolio Highlights (Sarasota, FL) $19.1mm Investment Shoppes at Sarasota Row 48 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 900 Units 1.2mm SF 6.04 Acres Opportunity for Expanded Yields 49 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 |
| 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) (1) Total Estimated Investment $12.5mm Negotiating LOI’s on 20,000 sq. feet of infill space Virtually Vacant When Acquired (1) $3.1mm initial investment plus estimated renovations and tenant improvements of $7.9mm Potential Stabilized Yield 8% - 10% 50 20 yr lease term Est. Q4 ‘17 opening 39k sq foot anchor space 15 yr lease term Est. Q1 ‘17 opening Anchor Income Properties |
| Opportunistic Investment The Grove at Winter Park (Winter Park, FL) 51 Income Properties |
| 2016 Dispositions ($’s in millions) $74.3 million in Proceeds Remaining Lease Term Sales Price Exit Cap Rate Total Gain/(Loss) PSF (1) Property/Portfolio Total 10.9 yrs $74.3 5.79% $11.3 $228 (1) Sales price per square foot exit cap rate Favorable to low end of Guidance Weighted average Harvesting Value Reinvest & Replace NOI 52 American Signature (Daytona Beach, FL)3.8 yrs$5.29.55%$0.2$99 CVS (Sebring, FL)3.1 yrs$2.412.10%($0.2)$218 Teledyne (Daytona Beach, FL)9.3 yrs$3.07.23%$0.8$195 Lowe’s (Lexington, NC)9.6 yrs$9.16.29%$0.3$79 PNC Bank (Altamonte Springs, FL)3.1 yrs$3.09.53%($0.9)$727 14 Asset Portfolio (I)14.7 yrs$51.64.73%$11.1$402 Income Properties |
| Commercial Loan As of September 30, 2016 Investments $24.0 million invested Wtd. Avg. Rate 8.8% All investments made in 2014 DFW HYATT SOUTHGATE MALL GLENN HOTEL $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 Opportunity to Monetize 53 Loan Investments |
| Golf Operations Annual Results for 2012 thru 2015 and YTD Q3 2016 Net Results – Cash Basis (1) (1) Aggregate of reported operating losses, capital expenditures and removal of non-cash straight-line lease adjustment 2012 2013 2014 2015 YTD Q3 2016 Membership Count 54 Golf Operations |
| (A) Liquidity and Leverage Update As of November 30, 2016 80% of Debt at Fixed Rates Total Debt of $171.6mm Weighted Average Rate of 3.9% Weighted Average Maturity 5.6 years Nearest maturity 2018 Estimated Available Capacity on Credit Facility ≈ $29mm Attractive Debt Rates and Duration 55 |
| (C)(J) Share Repurchase Program Average Price/Share = $49.89 $14.1mm Since 2014 (1) As of November 30, 2016 Increased Pace 56 $ Invested Shares Purchased |
| Daytona Land Tanger Outlets as of 11.30.16 Tanger· Outrets $1 OOmm Investment-900 Jobs IITOMOKA CONSOLIDATED 57 Development on our |
| Daytona Land Tanger Outlets Grand Opening Tanger· Outlets IITOMOKA CONSOLIDATED Opened November 18, 2016 58 Development on our |
| Daytona Land Integra as of 11 .30.16 LAND COMPANY 264 Unit Multi-Family Project IITOMOKA CONSOLIDATED 59 Development on our |
| TopBuild as of 11 .30.1 6 Public Company Headquarters IITOMOKA coNsoLIDATED 60 |
| Daytona Land CarMax as of 11 .30.1 6 Opened October '1 6 IITOMOKA CONSOLIDATED 61 Development on our |
| Daytona Land Orthopedic Clinic as of 11 .30.16 Medical Office IITOMOKA CONSOLIDATED 62 Development on our |
| Shareholder Friendly - Corporate Governance 2011 - 2015 2011 - Reduced Board of Directors from 11 to 7 (currently 8 until 2017 annual meeting) 2012 - Implemented Non-Staggered Board - Annual Election 2012 - Implemented claw-back provision for equity incentive plan 2011/2014 - Discontinued executive perks (pension, deferred comp, car, club) 2016 Hired Deutsche Bank – Comprehensive review of Strategic Alternatives Increased dividend– from $0.04 (semi-annual) to $0.04 (quarterly) Implemented claw-back for cash bonus plan Prohibited Margin of CTO Stock held by Executives & Board Enhanced stock ownership requirements for CEO & Board 7 of 8 Directors - Independent, Increased Diversity (7 to be nominated at ‘17 Annual Mtg.) Held First ever Earnings Calls (Q2 and Q3) and Investor Day Say-on-Pay Outreach by Board : feedback regarding compensation programs 63 |
| 2016 Guidance – Status As of September 30, 2016 (unless otherwise noted) Update (B)(1) Acquisition of Income-Producing Assets $70mm - $85mm $86.7mm 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 November 30, 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. 64 Leverage Target (as % of Total Enterprise Value) (1)< 40%35.2% Target Disposition Yields (K) (1)7.00% - 10.00%8.20% Target Investment Yields (Initial Yield – Unlevered) (1)6% - 8%6.33% 2016 GuidanceYTD Q3 2016 Earnings per share (K)$2.75-$3.00/share$1.96/share(2) |
| Experienced Team Started with Company • Morgan Stanley • Morgan Stanley • Cobb Cole 14 Full-Time Employees 65 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 66 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 |
| Endnotes A. B. Debt amount includes the face value of the Convertible Notes outstanding There can be no assurances regarding the likelihood or timing of the potential transaction(s) or, if including sales price any occur, the final terms C. D. 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 Not Used Completion dates for construction are based on publicly available information Not Used Net operating income calculated as of November 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 and Subsurface Interests transaction 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 E. F. G. H. I. J. K. L. M. 67 |
| (NYSE MKT: CTO) Q & A 2016 Investor Day Presentation |
