CTO - Earnings call transcript Q4 2018 | CTO Realty Growth, Inc.

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Operator

Good morning, and welcome to the Consolidated-Tomoka Q4 2018 Earnings Call. All participants will be in listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. to conference like to now would turn over the Mr. I Albright. John ahead. Please go

John Albright

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

you Secretary. few CFO; with today Mark our General Smith, the with call Dan to our regarding me On disclosures the and over and customary is; of I'll Corporate comments and to call it Mark call. our provide points Patten, our this format turn Counsel on regarding a

Mark Patten

John. morning, Thanks, everyone. Good

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

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

John Albright

up questions. Thanks, this Mark. Operator? open At we'll for time, it

Operator

FBR. ahead. session. Our B. from [Operator Kucera first go Instructions] question will Riley comes We Craig begin the today with question-and-answer now Please

Craig Kucera

there? talking pipeline additional Minto fell guys. week. you late I out kind happened just of some out about contract the with sales morning that on what give Hey, last Can of the color wanted to good start

John Albright

Sure.

all XXX -- a were selling traffic already got first locally. sold really their fees when traffic the home benign. the So a impact fairly year, success, sudden, XXX of X, concerns bought concurrency homes homes per amplified Phase we Since Minto and extraordinary

the So other the doubled even traffic and be the costs their probably impact their pace they and way years, deal. until they is to fees to is the years than more at pending need to equation blow that And look for final more though the of not hard bigger economics would tripled. side this But on before a of they the this that, -- the swung and perhaps too basically land great have even I don't four land. get issue

will that in fees, So it from four cannot was to short be time jump that X that underwrite so and abruptly. in concerned impact they're traffic what the costs Phase is, X years, something more they Phase obviously given

about X then concerned get they're product, when an And what's affordable age the to they building going the land. just they're finally look So Phase community. to like restricted remember,

So they core they amount a -- cannot really that their that pass through certain -- can afford. to their customer customers the beyond

or terminated go just we'll with thought they continue is factors on work see that much they to whether contract. away they together, and risk And So all too those the completely. there

land attractive a Latitude that And know the you to to with with has the is Margaritaville As equation contributing them the St. them Minto into in Panhandle. JV. XXX,XXX probably Joe got probably provide know, units that a Joe deal pretty St. is and because

development of So structure them. for it's really an asset-light type

out to X,XXX than for it's need family, million the appealing don't putting that $XX.X acres rather four probably pretty So -- probably years. on they

strong we still all said we having gotten inbound that, and here have market's some have -- property. interest in that So that

what see we'll happens. So

Craig Kucera

Got it.

of then sort active another be or of of family? guess, the sort with wait be user if any single for tranche would they I So developer a adult while, natural it

John Albright

restricted, age community or four plan master to three going you ups, be first time have could time. with really it that the different Yeah, it a lines land of buyers be can large could is attractive be product that move home have at then same

we there be is component point, on to adult Minto's good but a active likely, sold to restriction not on will So that's an at long until XX% sold some be out. most an property active too don't is is adult, XX% that, news is be Well, that out. the until there have going their

that's other going groups attracted it. not with be an perhaps issue to So being to

Craig Kucera

contracts, But there is when that significant memory. any it. money that consummated? And Got you're loss the these deposit earnest is refreshing isn't my structuring transaction

John Albright

the time, hard. -- Really we hard didn't valuable us. of the they when that then the the have extension, incurred XX-day and money, They did for for went the went cost their is significant first for which course basically they they the money when terminated extension -- it

has So pursuit and a it land the X,XXX commercial, X,XXX of probably entitled. lot of between million to that's feet and to now value we kind $X of $X acres have that and because get land of they for it, million we're that entitled cost square over XXX,XXX getting inbound on units and spent inquiries with why

Craig Kucera

your maybe assets optically. I sale XXXX with back expectations, some in out, fewer it, XX%, your were just of XX% got the you've gone you quarter? of got pace Got okay. sort and in thinking and in and through Can falling lower want to fourth that to you you multi-tenant back a slower of sort sales move from are it shift maybe you color, just October, single-tenant me it's looks percentage walk a to seeing, XXXX the give like you some maybe of sort maybe me expected

John Albright

side? on you the side or acquisition sale on land Craig, mean the do

Craig Kucera

of maybe color you're to competition little of changed? wanted kind kind the what was bit your Minto this is just I mean, XX% closer it expected. on on well -- multi-tenant -- year acquisitions, that's looks was quarter understand in both, and your fell that out And On on But like single-tenant you I XX% of to a expecting the about last to think quarter I higher. some what's get this target

John Albright

Yeah.

transact So the year. this we properties multi-tenanted couple do those a and expect the have market to we of in do

room pace to the multi-tenanted XX% capital And -- the triple-net. that opportunity, certainly But and oversell put really We're would of with basically getting we would of place the transactions in single-tenant period and on don't the bit match we're a happened want the not -- have really so it's the acquisitions. single-tenant portion of single-tenant -- been help that up to Minto up. had of That skew quite in the the it's to pursuing have side. to multi-tenanted going the but the

to a little conservative year. this on just trying So can -- what bit we we're be it's -- accomplish

Craig Kucera

Okay.

I you REIT, you Given your you decision know sort earlier, commentary, go think to a last target a to year through about you a had become becoming date I stated were of REIT, of the late had process. maybe XXXX had haven't you a made if but

had if given that a that Does do or few months. Just you seemed decide maybe that last still sales to land fall you've become a likely out target the over six REIT shifted? is

John Albright

I possibility, together target these we'll dependent things it still like for -- the that that But mentioned, is enhanced and look obviously I so a vote a take sure. so the -- sale transaction. But a here. But But forth. really has is think shareholder we the the shifted because out that be that you still chances perhaps there has this are of a come land given mean, still getting larger transactions that make. environment. but what -- -- as on shot hopeful couldn't can we're of land it

Craig Kucera

think property it year $XX just in bit you guidance. a bigger that like And net of year, have actually about it And not that fair to Right. picture, that optically your yet this having still delevering a might because much -- Is sales. looks way? of a $XX land it you're million maybe million deleveraging growth be to

John Albright

Yeah.

as on properties. of have with land had more and come leverage as acquisitions we multi-tenanted so sales transacted that and come So have some bolt down some the up Minto will would the through forth, we expectations

So.

Mark Patten

acquisitions, your we kind as to point, in into a transactions the the as and actually back quarter. Yeah. fourth And we few execute that's XXXX deploying of of delever would into trigger reversing Craig, transactions the opposed quarter the that's also it's sort that that fourth reverse the of to

Craig Kucera

it. got Okay,

With a broker are we're got mentioned, course, losing Would marketing the think I out that I national seeing or they're you in know I of the about but what is you've sort golf you XXX,XXX the large-scale guess be who golf this for it, year. that? marketplace? course operator as a buyer natural

John Albright

the actually on probably, is market. interest worth Yes, net the high higher it's

-- owning given just golf properties that from obviously there's obviously a weather Foreign migration. and the the buyers side buyers -- course states Florida, in for preference in population the other

heck So, say, would very of even the the at there's you interested look are club. golf the that step that, economics into a actually and though in the fair amount who

hopefully we'll something see on happen this that. year So

but course say more it, net maybe looking as I but would the as -- -- who strong there I that's golf the So, say at operators are worth case it's wouldn't who were are high side. not

Craig Kucera

Got it.

Moving back to the land sales.

$XXX with O'Connor two time? the piece all, six then pipeline additional transaction in this industrial you was you've of ago, of million, have fallout point You go guess, interest your since and seen I months three I had about any think the back largest first Minto. with at

John Albright

companies that to -- There that think only years have industrial Miami out about for will land requirements regards industrial. out from are you of with was tell distribution large-scale about our Jacksonville report supply for pretty land site Orlando, market know industrial. to Miami they a There five much to that out large are couple industrial left JLL of years and There needs. land -- the of from Orlando's six

supply plenty Now cost the there's are markets. opportunity news Jacksonville. some primary plenty so us in good or is, of you're the opportunity seeing opportunity, and still But, limited the not in escalate there for of

more our viable. more position and So becomes Daytona

in there about a the demand opportunity, but little people looks know there is early. the So are market, it

Craig Kucera

currently land Got close you million it. are expected kind year of are about under know the two when that? this that's $XX the Can you how of tranches. expecting sort handicap thinking in you But or to O'Connor kind of to contracts. think close? going I next you with And year you size rest that's and

John Albright

right of have tranche mean tenant closing. like less acres, on early Yeah, -- perhaps late quarter I first what to would I would second and they kind on good demand of timing the in looks looks a tranche because now. little work just that they path the it, third that call XX of timeline maybe a slide it bit like give would all for quarter first they're the that right now that be -- is -- they're could close maybe But conservative, for entitlements. it or it's I

And be would so expectation. a that fair

Craig Kucera

And Got more your it. one just me. I from guidance, so understand

You sort me $X.XX an clarity you bit of what that included the to $X.XX sale in $X.XX a not dispositions. and Is asset just that? give you more if may then can from of have may happens that happen or $X.XX and have incremental little on or to kind EPS that

Mark Patten

that to Yes, went back an sir. first EPS the on We line. forth, basically the additive would guidance be and

we it were between achieve, can the successfully the if to So, execute dispositions $X.XX somewhere would we thinking $X.XX EPS to guidance. to add we're

Craig Kucera

that Is $XX.X that into or so, top sort fall guys you $XX.X baked that that is maybe million. of on occurs? million I would million, land that be think sales that a closing are based And on, of on anticipating $XX.X

Mark Patten

actually. sorry Yeah,

multi-tenant, sales. in land the $X.XX in are to et land $X.XX. $XX.X $X.XX the million the cetera to is So the be sales sales would dispositions, $X.XX Land golf, not

Craig Kucera

Okay.

So multi-tenanted... the expecting it's which kind are the of sales you in of

Mark Patten

some and/or aspect the subsurface. gold of the And

Craig Kucera

I appreciate guys. I it, thanks. Okay. All got it. right,

John Albright

Thank you.

Mark Patten

Thanks, Craig.

Operator

there John any no for conference session. questions conclude this to this At closing Mr. queue. question-and-answer over I are time, would to Instructions] question back turn remarks. the [Operator our like And in further will the Albright

John Albright

you our much and questions. you. quarterly attending call follow-up conference have for please very Thank Thank if any you call

Operator

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

CTO Realty Growth (CTO) 6 Feb 192018 Q4 Earnings call transcript