CTO - Earnings call transcript Q2 2018 | CTO Realty Growth, Inc.

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Operator

Good morning, and welcome to Consolidated-Tomoka's Second Quarter 2018 Earnings Conference Call. All participants will be in listen-only mode. [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 quarter conference to call June Good of to Consolidated-Tomoka the results the Land review XX. morning, today's Company ended for and My of Albright, is President name the John company. CEO

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

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

Mark Patten

John. Thanks, everyone. morning, Good

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

may reference over call. provides information back useful this additional that you during presentation investor we that, find Our the I’ll may With John. to call turn and

John Albright

Thanks Mark.

holdings. we results, with progress land related our made to quarter with our second particularly pleased We’re the

the of mitigation by acres proceeds of completed than a the XX% we total venture more for million. acres completion BlackRock bank land quarter, holds with joint X,XXX the our that of approximately of our During $XX.X representing in land highlighted sale X,XXX of transactions

completed per and an million, in other nearly acre. of average XX,XXX of transactions acres involving XX resulting also approximately approximately We land three proceeds X.X

involving acre. transactions proceeds million, resulting three approximately per in XX X.X acres other average of We land approximately XX,XXX also completed an nearly and of

to of In land we pipeline sales. added potential addition, our

Our sale XXX of XX,XXX holdings price our the potential reflecting pipeline proceeds more of per than approximately an or now land has XX acre with average per acre. X,XXX contracts total approximately of acres million representing potential XX% remaining of approximately

So, of the another is that point to that has company X,XXX consider under not only contract. acres is land

converting be lot of happen a net results. operating is of a about remain and a income our highlight to contracts that XX upbeat and properties. strategy of position further there over single to our opportunity those to the it to While to close few proceeds advance those land need primarily in things of we Mark tenant our monetizing second are on I’m elements from this to into lease going thrilled portfolio turn to quarter

Mark Patten

John. Thanks

a mentioned, we quarter. second As had John solid

As share revenues highlighted, nearly income our than achieved of $XX more our in came release we $XX on net million. of at operating $X.XX and per income million,

the from growth income Our transactions quarter for include mentioned, land highlights continued property the in John revenue our and operations. the

approximately net aspect a wanted million increase both. of respectively and revenue XX% bank XXXX, quarter segment income $X.X from also operations property operating highlight income basically this the $X.X in by Our and approximately to I the one transaction. mitigation same grew over million of

in bank. structured X,XXX mitigation the was that makes acres As the of approximately the land that the transaction of as interest this noted, John sale holds entity a XX% up

approximately real sale revenue. recognized comprised we on than the our interest the from results of investing approximately $X.XX estate XX% the structure retained two While program for of sale components, is the we buyback on the interest. share repurchase of that’s acres approximately We $X.X venture presented gain from land transaction The the $XX.XX to of a average quarter gain a and share operations share. a XX per rather the our our transaction our holdings, had the share good within bank effectively disposition million represents as per $X.XX of based nearly of price this land disposition in the on an the of gain shares, mitigation assets XX,XXX

up to our program addition, million. the approved the buyback In board we have program putting an total in increase currently buyback place $XX back to

down including went $XXX leverage as the percentage our enterprise on at value capacity of to increase approximately to million during $XX on pleased measurably accordion the benefiting also on finished increased pay our the have part borrowing quarter The end credit the credit at facility. approximately Overall, the with cash BB&T. the facility at strong obtained a facility credit continued $XX than commitment we the our which increase $X.X that We to We We lenders million terrific more appreciate a from capacity, the borrowing the on our quarter. the more of top and facility credit available in million and support on up liquidity borrowing $XXX position Fargo amendment capacity team million. facility. of of were commitment, Wells at of the also folks on credit in an than at reflects of million on Bank by our dropped of include our Montreal XX% the to total quarter-end, the led

an share more sales increased income per mention generated from quarterly and our per other dividend XXXX, level that would value which annualized increased of third benefits the of of which an $X.XX quarter income book to over to XX%, of XX% share, to $XX.XX during our paid at XXXX. the the I’ll per an from property than is $X.XX dividends among includes operating June increase the also increased equate which Our board share increase quarter the approximately the land dividend operations, for XX, factors. in XXXX,

to Now, back over I’ll turn it John.

John Albright

questions. for open up Operator? That this it concludes time, At remarks. our prepared we’ll

Operator

Please Riley [Operator Thank Matt comes Instructions] go question from first our you. with And ahead. Boone FBR. B.

Matt Boone

guys. morning Good

of days of closing bank, the sale what in conditions? there that the press conditions the are to transaction, meeting said you terms what guys release and the the required you those are following is mitigation Regarding those update in within conditions meet certain had of XXX

Mark Patten

couple Hi conditions Matt the to they and for were that really credits completed news Actually, Thanks is state was amount had quarter, almost then in to the question. the other awarded morning. elements. credits, of of and XX, do the we that prior good it permit the which from the the with June good getting why and a recognized of administrative number were

Matt Boone

of of opportunities to in can kind market you front, then particular have turning acquisition an currently and XXXX? far seeing you any are great. And thus Okay, the in idea if the XQ properties you give then us what identified

John Albright

have execute going we chasing opportunities. feel reflective busy our on of Matt, very been is this something very of We a that pretty good that for that we is is different seeing Yes, lot to are can what John. goals we year. be the

it’s lot a find here. there assets feel a quality things but So, capital higher with acquire as to to that to we some know, of market challenging be very you for we're good able out going pretty

Matt Boone

Okay.

just assume it active of that the all Okay. given half in fair range So, is? pretty to is where will XXXX be guidance your you back

John Albright

Right.

Matt Boone

how the buyback back acquisitions? the you that, acting guys of any upped million off going versus potential then, XX to on buyback you are viewing, And know you

John Albright

of buying here shares and we kind you dual Well basically an it opportunistic action when active back can have a as we upped is is course see it. been of it pricing of and

present both opportunities we themselves. it is can will if we those do So, not and or, an either

Matt Boone

is And occupancy thanks. Grove like Okay, Winter then that to an just or there kind of Has turning would overall great? Park. update stabilization The where be at reached

John Albright

Yeah, vertical. That plan of be has that couple so months. a created a by velocity the last November. side the open Wawa now. in is under They've good of news gone more on to is the leasing They construction kind

transactions in, kind of at at we we’ll of year we’re kind would seeing end XX's I say, on We'll by So, of of property. that type stabilization the be end the be feel in year. the the confident very of the that occupancy amount

Matt Boone

impact your at transitioned can give you golf last Arcis Golf operations, far? of Okay, guys update has thus then an thanks. kind that to And you what on looking quarter, had

John Albright

is showing positive. morning unusual rain the weather quarter rain the yet in sort what, the up rain an amount in had terms of than experience results. ago. the of over in know afternoon been year really, second isn’t impact think XX the I inches just rather the the we in was of It Unfortunately, You in up and

of in rough the it’s been regard, been they terms activity how little that them – bit are and in very favorable. approaching has management otherwise their it a but So,

Matt Boone

be later potential previously up thought reconversion, is, has there been you’ve one about is I change that it have XX% wanting was talked contract or the to to XX% under last since pursue on you still me land And of process of curious, kind to changed know I the that how thought disposed on plan Okay. from last to process your quarter? any and has now. just maybe

John Albright

process. say that portion we’ve the think that a thought change transition income and Yes, once closing that been made properties. We been contract into of of a sense still let’s on from significant hasn't makes there land has closed

land we're we’re revisit and to right focused a to contracts good obviously I on of so closing. of maybe and year second getting a really they land quarter focused be really just closed, but So, these think execution next on kind now the first, getting time it,

So, definitely a once be closed. I deals think year harder these are time to that about next would think

Matt Boone

it. me. from you. That’s all Got Thank

Mark Patten

Thanks Matt.

Operator

question go [Operator from a Instructions] Private Investor. And ahead. our next Steve Olsen, Please comes

Steve Olsen

try for Thanks taking Good to morning. questions. quick. I I’ll a have be few, my

of NAV rather that east Strickland, you worksheet, LPGA value the the on between east track – some increased can on share land? details and that On XXX-acre track significantly, Williamson,

John Albright

Steve. Sure

of with track it a bit So, you wetlands lot know it. and a that has of associated that is little land tricky

in ultimate that dependent mitigate you value where certain the wetlands. is really certain locations uses So, of on can track

gets we and good how – be see parcel that’s news reflecting why is, the it’s know that to you so of track, is that valuation because in we’re determined that we’ve wide fairly range certain developed, you have the so had interest but of changes of some there. parts that amount on kind fair So

site. by medical. the in It will multifamily, commercial, an say different residential, and It the whether developing we infill and not, have it have to that’s is even a interested has end uses. on buying is group industrial of partial, that could be of many year kind hopefully we So, so more but safe or transparency

different are we’re various talking So, parts of site. and with lot a there the groups on that moving

Steve Olsen

Great. Okay.

not always landfill On period. I contract. the guess, I had don't that under really pipeline, West, I went holding it that see parcel, had that I O'Connor was pleased is a the XXX-acre thought the Daytona to or longer are get certain whether perform over getting the certain obligations – it's deposits, tasks year studying to that or think wetland to and next gets you the there or to continue approvals two? purchaser contract proceed

John Albright

Yes.

because real entitlements. as lot and doesn't large format land know raw take piece And is actually you creation a opportunity of a through contracts property it for they value our have us, group a of they're So, in if buy unentitled. deposits that the don't

So, kind that them they this are is get of and the on else. then studies of group dollars studies they engineers, that work traffic thousands if the has we on so that investing contract consultants, in of use doesn't somebody for and hundreds value spending it that’s that contract that for planning, all decide those a we various could real

so encourage on more working from lot will So, months hard come. but it, a we far, doing they and will see know to in they very work of what they are and

Steve Olsen

company continue observation? about pace upon and shareholders know accurate you that pleased of observation flow cash buyback you if and million, of at the from the that flow, activity upgrading Is depending XXX% little an anticipating investment of opportunities, your I And net the your result quarter. returning cash over in which I the operating XX.X cash think guess dividend, with chart if bit other Okay. in combined with cash flow, you appropriate. look a reasonable where are I you at your that X was would pace is to million that probably

John Albright

Obviously, a stock gotten lot have has volume. of the kicked Yes. Certainly, the and that that’s I price in program mean not been seen buyback weak you recently, accurate. successful. has

that corporations. note lower is interesting the before the for government price know lowered the rate You than federal stock tax to it’s

fair land have So – closings. amount we a of had and

know you you So, basically have into income going reap that bank, are deleveraging as from event the know mitigation land closings, the as those $XX you of as we sort of a we land of million segment, proceeds. had think kind

of we buyback yes, of So, the assumption a the the successful an that rest accurate on through dividend program. return are capital stock still is

Steve Olsen

And have your I today guess on any investments period sacrifice and diligence you probably goals just of as year you imagine, need due transactions, have are the don't in as let continue exchange rigor analysis, to you don't you, not you're as because the goal land, your you and for I what to you acquisitions rigorous and you make more where – close are or within far are guidance or the currently? impact where time, any certain obligated this XXX

John Albright

No, currently. not

XX:XX mitigation You’re right, Steve. cash it we land most see that our deal, transactions kind o'clock really you the that of transaction Basically, part the of when don't were and means lot a ticking. the and have into we the restricted for reversed have other so yes, don't Aspen

Steve Olsen

limited. making and if are Well, fewer I board believes Okay. opportunities sure am thanks appreciate understand and luck. the investments, good management the would

John Albright

it. Appreciate you. Thank

Operator

question-and-answer like the closing to session. turn John back Albright This any concludes conference I for to remarks. our over

John Albright

for we you talking to and in throughout dialing Thank forward to quarter. look the Thank you you.

Operator

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

now may disconnect. You

CTO Realty Growth (CTO) 19 Jul 182018 Q2 Earnings call transcript