CTO - Earnings call transcript Q1 2018 | CTO Realty Growth, Inc.

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Operator

Good morning, and welcome to Consolidated-Tomoka's First Quarter 2018 Earnings Call. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to John Albright. Please go ahead.

John Albright

operator. you, Thank welcome operating and conference to call Good of to Consolidated-Tomoka the results Land review morning, today's Co. for the XXXX. quarter ended March XX, name President Albright, is of My company. the and CEO John

Patten, call in our General me a and Mark details moment. review Secretary. I Corporate the quarter of On is our Counsel CFO; Dan first Smith, with and our will the and Mark financial results

and with a it over points this to customary you disclosures turn provide on regarding I'll format First, call the to today few regarding call. of comments our Mark our

Mark Patten

John. everyone. Thanks, morning, Good

to statements During statements our risks not after release call statements, in company's materially time that The may today, may release and these securities last matters to in greater federal revisions were from considered that to night. we'll company's our forward-looking forward-looking statements issued made. make expectations discussed be significantly detail we could to are reflect future Factors differ these the results SEC and certain differ results from with and the to disclosed may laws. in from actual changes forward-looking earnings statements actual time filings cause be under the in the

QX our which website. investor Let that we available on me note filed presentation night, now last XXXX is our

filed Wednesday, April company's may be in any related to may presentation become scheduled company, when in officers its next will available filed the which carefully annual Annual the The Shareholders, the are of the note, shareholders and and useful and encouraged company filed solicitation Meeting is strongly participants investor company's certain company in with connection SEC information be solicitation the reference XXXX about information entirety and in March, its proxy its materials such statement read with their the call. with contain of proxy the connection we important related to from additional proxy proxies they and for you in back definitive with Shareholders XXXX XX. as executive provides another proxies. the On all other of the during statement find directors Our additional that of SEC materials this we may file deemed may meeting. of have and they

the pertains question quarter We quarter on results, our interest With attendees your to request. first much cooperation which quarter to results solely to today is contained turn this the we as applicable, presentation. require I'll is have this to adviser, of of We call back Wintergreen and meeting, Lastly, should serve as a candidates many largest question our know, shareholder Advisers financial connection prepared your you a Wintergreen will morning, and as the in during likely X to that wishing respectfully at funds end proposal of that the ensure XXXX and our of which have Q&A collectively the we'll the investor the call. appropriately primary focused they remarks, the with and, believe first behalf the nomination from a John. of upcoming on received request that for hold ask transactions our to we shareholder. during that We in annual the it or director you those the of QX to very the XXXX over on appreciate our ensure want that, information occurred

John Albright

first the were in results we the quarter. We Mark. with pleased achieved Thanks,

potentially intersection the $XXX,XXX. and per to of of acre a Buc-ee's XX their than of representing the X the with previous near quarter, contract We a developer price at approximately contract to During $XXX,XXX for the X we acres on with and a $XX executed a default acres new contract nearly grocer Boulevard with our terminated same completed more million, close. specialty LPGA nearly on a on faster sale purchase due acres Boulevard price Williamson that the

turn to relating I other of acres as pipeline Mark X,XXX a going just the potential per portfolio approximately other reflecting total an of of today, our business. few of our to over to over represents of with sale proceeds or $XXX just in activities it operating our average quarter our as approximately results As to well first million, potential elements price property before highlight our of segments over remaining some $XX,XXX. discuss acre XX% landholdings I'm income of matters

Mark Patten

Thanks, John.

solid John we quarter. As mentioned, a first had

transaction, of terms noted, approximately for share impact our in we Kerriton John acres per $XX on million. interest, highlights a revenues tax. subsurface contributed which our nearly for we potential the we XX and land XXX income acquired quarter release discussed of as $X.XX As entry in site earnings Buc-ee's expect net The achieved well revenues from a surface as resulting the which revenue transaction and $X.XX the approximately sale in we rights Henry that of will acres drilling completed million share [ph]. per of surface that share also the $XX of the approximately earnings on per net in provide $X.XX of County, In future include approximately

discuss in the In provided after earnings $X.XX in moment properties per tax. the addition, John X of a multi-tenant sale share that flex-office approximately will

quarter Winter increased of our The of newly the results restaurant our our Grove credit revenues versus XXXX and due capacity million our properties $XXX,XXX the quarter in in year, by of strong in last portfolio Park revenues our from a impact beach $X.X related to decreased income of transaction nearly increased sale year income this land size net including land $X.X the Buc-ee's million, $X.X and weren't opened facility. our nearly over of We including of the in properties. to that position, cash finished property the the last from recent million While first the and revenue and almost $XX Minto in total QX liquidity in primarily versus acquisitions year million approximately

quarterly $XX.XX our total share the enterprise at book during increase at dividend share of bumped Our also to in per XXXX, to relative up of an share, our an XX% X% to annualized we level approximately of be approximately And equate than XX, an $X.XX XX% XXXX. value. the increased which per dividend to March I'll to would quarter-end more mention for XXXX, quarter. the per paid that level increase first would which of quarter leverage dividends our value over increased $X.XX

Now portfolio activities I'll loan it portfolio. our back income property to discuss and John turn to in the over

John Albright

Thanks, Mark.

second $XX portfolio, be of both principal outstanding Regarding investment we our million expect repaid the quarter. loan in two the will end approximately the loans totaling that by

for quarter quarter portfolio. a was our income busy property first The

$XX.X a million, the this operators approximately seen in on us our quarter. gives our of strong for property the our net end in escalations first investment to initial a guidance but the of mentioned XX-year bought conference feel Colorado, commercial in February, the beach in January, rent risk-adjusted acquired tenant's lease traffic rate have significant As contribution the that's with retail parcel purchase. Aspen, which net master year-end X below we a built downtown call, lease, restaurant We compelling late at low X-acre return. In we XX,XXX-square-foot cap and property both newly properties opened master during

the or sold gain properties of foot into of our lease approximately approximately Beach recycling as at with concludes the a the these compelling leased replacement $XX.X Beach we properties million per Daytona Fargo $X.X below outside also time, and us in cost a $XXX invested property to for and single-tenant we flex-office X net self-developed. office completed higher represents prepared office that at generated Daytona Operator? multi-tenant assets Finally, square our for and transaction of sale this office in That at $X.XX At We This of acquisition here above in capital million include property to were yield Portland after or of Wells into tax. these transactions reverse single-tenant the one per a XXXX. we'll a approximately as questions. a multi-tenant quarter Hillsboro, share a open the sold remarks. the and up this We our XXXX of for able stronger of Beach cost went transaction proceeds Daytona properties our in fourth Oregon we it replacement than credit. that

Operator

Instructions]. [Operator

Kucera comes question with Craig Riley FDR. first B. from Our

Craig Kucera

closed on acquisition wanted little structure. the I bit with lease particularly the start get quarter the a more just color, during and you to off

a If do of those that, rent you're talking of little about years, ramp-up -- to in of quick something a a initial to couple beyond kind I sort how see Or going escalators? do you X.XX% and from are potentially a just of X.X% flatter? sort you then guess those continue

John Albright

question. for the Sure. Thanks

and interested, tenant where transacted bench was right they have building, mix them and is And the building, the So it of leasing roughly had bought XX% gives optimize to purchasers with only the the us property. value. a deep interested a were the brand-new curate that structure time completely to tenants a are contract the when we in and what

So what master ability -- up than steps percentage a in steeply. structure comes also, fairly to at we a we even do it have cap was escalated low lease and did but low a where fairly rate, it that. going-in the better And rents

to their just up term. the that the feeling And some for wouldn't to pressure be optimal them that allows jam without leasing in so ramp long tenants

the we're so comfortable with And very structure that. in very,

so as credit. building, lease we And putting up one additional master as TI the credit, and and they're as forth. a have then in We they subleases lease have an

we're and the think very So for the structure, I the about compelling really of excited years their the quality the location. returns -- will and the be over property

Craig Kucera

see. I

to on occupancy your of get X.XX% of So call guidance? is top to trying sort what embedded that, assumption it, your up

John Albright

would see it that you fully But kind equity So get much of a -- I say once on it's property. this be could the so high I to a yield up, will that leased small it's digit building, take there. single doesn't would

they'll then can a if And up. on ramping keeps kind kind lease our so on X% X%, rent lease-up clauses And do they master better so also, and imagine you percentage have their that. of than of

Craig Kucera

Okay. got it. Excellent I color.

mentioned I Going you might to mitigation. there that the in complete this a a recognize you you press time which sense frame at that have component of deferred quarter, is Do the that until be you release sales Buc-ee some think will gain?

John Albright

Corps. would something could less, be has but probably, say It Army kind like with the or of frame X-month it that. do to Yes, time I that's a

have don't that, time say So we good control a would that of. it's element a bit that would I starting But point. be little a of

Craig Kucera

Okay.

have lease rollover Going years. to know I of lease lot few next you rollover, your don't the a

Noble year coming have new & they at maybe do of your Are there? Kind a what tenant? getting looking renewing? are in plans Barnes you the next Or You are due a here so. you or

John Albright

Yes.

other are do have tenants in interested they so what for for very entitlements on to to a have the we they some So work want with tenant and working center. space. that that of They there,

kept we've the very what to so right adjacent Noble particular do, Barnes And & to the property want matches is if -- But DAYTONA across the up marketable other tenant timing this weren't this speedway. with tenant. is to ONE until do on extending at right even it's because able they

you you But Noble our at any in So there's you Daytona property ground, different that this expiration. time. short-term when very a even on would X say, at for kind look though sound list, -- buyers lease a Barnes okay, with like a lease & if might you the -- see risky of Beach,

if very -- a it sell take to it, new we're liquid tenant asset we very a with that be to over but working it's spot. a So wanted would

Craig Kucera

rent sense a have or positive the rent? be be spread you it relative Would relatively do to kind of a of what current flat? And would

John Albright

say basis -- basis, higher credit would on it would lower, but longer be and rent term. a would a lease a a I be that on

less Noble. credit you higher go it, it's to Barnes though to of & sell with equate in a went the term you because have versus would if the rent, lease even perhaps So it valuation what

Craig Kucera

side you Okay, a you this transitioned do your run or you like lower maybe of you'll improvement operator the I see Do on both? got they'll Or think it be you quarter. think Can kind perhaps it. tell golf expense? at It expectations revenue us are? what your some looks to able

John Albright

thanks, Craig. based to we're Golf -- actually on of hopeful pretty out switched they'll have and Yes, a actually impact Arcis that positive Yes, on we over Dallas, both.

biggest opportunity the the On are that revenue built look, side, around us. is rooftops getting us for the

they're just be of be elements going the On I to -- a they're think to and the running course. product managing of at cost side, some better going

Craig Kucera

Okay.

you cash. for Going you're guys for to of your of expecting year? expectations know the G&A non-cash the between I what sort and year, give the overall the cost But the you us of out proxy broke can sense a split and

John Albright

of sort I first total quarter little anything at would terms in you lighter be, We'll now comes we're stock your think about you think we're think G&A, lighter the just generally, see bit months of getting these we're that look expectation. I think thinking I where we of you published the process about of X than $XXX,XXX-or-so a where it the Yes, shakes if comp. else out in report and through we and up. in terms including were if probably your than about But the

Craig Kucera

Okay. That's helpful.

Winter to over Now Park. Grove The at

I think XX% in it's late XXXX, leased. XX%. it was Today,

occupancy? so an yield leased it we once understand is higher X% Or you'll underwriting, sort improving your it's that from Just I and there? you hitting saying XX% to that unlevered are should XX% a of be at see

John Albright

that's correct. No,

timing a getting the the the the say will been property is coming are side. lot permitting is that that just county open but very I longer. slow in in So than underwrote, tenants these on have higher The rents of we

we're to next that so get But velocity so couple the There's that's current are up getting better. should the there. open And tenants of a occupancy. based month, on going

Craig Kucera

Okay.

had is on any the proceeds you received able were You to that think mentioned any find were nice Or that there there much -- a But it specialty that still for that? out grocer pretty you buyer default, defaulted, was a -- that premium. there? or you from and another was hard money I

John Albright

a a it's We Yes. amount. large -- have did mean, I not

we very, not want investors But big do big we always entitlements, is be getting can What deposit. on expensive. did which I've about, to some yes, deposits. very we're money talked So people capture on as to spend really

utilize though we're tenant folks. some the deposit, the this to for money even going So entitlement next collected we did spend be that to able

defaulted, anyway, get relationships So back see. has another actually that here, could come to around. and we'll the excited group grocer with they developer which in a who But we're is

Craig Kucera

E&P released for tell quarter and the you third board know more us that where I an today? on distribution. potential a me. one process Okay, update estimated you in evaluation an REIT in is Can

John Albright

Sure.

kind we're work at getting consider the be we consider of go from these to done more we So and right here a ready get we'd that always of see that typical we've income the the more board a all versus once board and on XX-XX land in decision will focused that monetization of We've won't be to in REIT. now make sales it point, And through where a land done though be love a XX-XX, kind we're position. to and until -- where land, it sales said to But would want XX-XX. like there. we're look more even

Operator

turn seeing At for Albright like questions. this the Instructions]. [Operator conference remarks. I'm no would John further to I to closing any time, back

John Albright

questions, And much Thank call. if you around. we're very attending you. you any Thank have for the

Operator

attending The conference Thank today's has now for concluded. you presentation.

You disconnect. may now

John Albright	President, CEO & Director
Mark Patten	Principal Accounting Officer, Senior VP & CFO
Craig Kucera	B. Riley FBR

CTO Realty Growth (CTO) 18 Apr 182018 Q1 Earnings call transcript