CTO - Earnings call transcript Q2 2019 | CTO Realty Growth, Inc.

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Operator

Good morning. And welcome to the Consolidated-Tomoka Second Quarter 2019 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. Instructions]. [Operator event this being is note recorded. Please

now John Albright, would like go to to over conference the President turn ahead. I and Please CEO.

John Albright

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

Mark and On Smith, Patten, Secretary. with the is our Dan Counsel me Officer; our Financial General Corporate Chief and call

I'll this turn Mark to to provide disclosures regarding you customary it over with our call the comments on today.

Mark Patten

Thanks, Good everyone. John. morning,

differ During considered from in discussed forward-looking may to changes we securities forward-looking the make statements. be statements these may statements not reflect to And forward-looking these that after may under made. to federal may the actual our release were significantly call be statements company's revisions law. matters certain today, The we statements results future

materially results is in our last Factors and the our quarter filed and second with SEC risks issued differ detail the greater time-to-time which on company's presentation that are actual XXXX our filings in earnings night, could to from in investor now disclosed night. from available also We've last cause website. release expectations

provides investor Our presentation that reference useful and we may may find additional information you call. during this

turn John. I'll to that, over With back it

John Albright

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

Operator

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

Craig Kucera

Just parts side. with the loan during moving wanted the few Start touch the of to quarter. origination a on

a loan your your had year ago. last or you last I a roll think off, I over origination little think loan

more quarter you of that earlier into you making the of opportunistic, types expanding going made think do the more in loans? to and late be are loans those With kind quarter you’re this

John Albright

that Florida. was advantageous in where was we large -- the industry for brokers the came tenants group the been an a buying the to and at the touch industrial we've price very and us, to and reselling saw given and in they broker industrial Craig. this their and group, Yes, Central The land opportunistic. REIT knew the industrial that actually, maybe well Thanks, a just short and or instance, to loan, in are developers the We came it. group with timeframe buyer buy the REIT path from development and one knew opportunity had actually market here --

and towards obviously a short act could on high fast of from. where bridge that kind transaction that need yield, So that's durational to it's loan, kind came go but they of

financing We accomplish of bridge in as other the on hotel The them The the type really but transaction doing transaction want Carpenter obviously of Austin, get construction the interested to was is in of provide the that. refi full ground were package in kind lease seasoned. a Hotel to the most for loan

as a is loan the So and lease price. good short able get there to structure ground as the well, of was part the but at duration fact a

Craig Kucera

it. Got

restricted cash. throughout you in you pipeline, and size see looking You kind of acquisition your closed of Can cash of at, current you're how to types million putting second year? think the about about I the that talk with deals $XX the work half of quarter the maybe the

John Albright

put the for our and you the we several the I'll the last but acquisition done. know and been active on on as kind Mark? balance far we transactions last how pipeline balance, a intend transacting the just talk here Mark kind about the let here that expect acquisitions. obviously, activity cash we've wouldn’t on to then, still of work. let will where were on commentary of after still weeks year. pursuing And we flurry in restricted been are of .But pursuing I has I of already soon, balance, balance were anytime are very as restricted But cash

Mark Patten

$XX Yes, at and million. we that. -- about forward the We of transactions we just million $XX completed and reverses were were utilized we both a

page million Now what $XX of we so as kind are you in restricted about can at the see in XX bucket. source the capital from got we've deck, that's

Craig Kucera

Okay. expect CocinaXXX, sort any impacts have that. from a press In the flow that the you re-tenanting release, transaction? regarding you you cash discuss disclosure didn't of maybe Can

Mark Patten

the we when think of Yes, I some for upside going to hopefully think, pretty forward it's little I percentage basically on replacement then rent the our a then rents bit maybe cash close terms going that. be more Cocina, the of tenant that of return in productive to is settle reflective and unpaid same rent but with opportunity and really their flow, out were will

Craig Kucera

behind subsurface Okay. the great. which is to saw I'm your Operations thoughts you. update I any Course Golf to there? the quarter, And And they're you like going rights that close that looks guys on will But glad this be or have sure

John Albright

Yes, on let give a me latest greatest Golf. and you the

to think So for a city expecting agreement were act new buyer city the the last commission commission commission amendment or -- to LPGA really city master the meeting. commission on the not of city which night we The I at at master lease, were not approving the front is was city issue it all. -- was and -- meeting commissioners the they what them committee at were some in about thought sale, the meeting, confused

So three had weeks. continuance for they basically a

there. fully But our delay that's kind might But the of the through. go to update that's closing. transaction We it still on Golf. update expect So

got ago. lease, weeks On their good couple side, the drilling as subsurface permit our exploration news finally that is oil a of they

the plans to couple should getting in on drill their from them an update weeks here so lease. next on we be their And

Craig Kucera

deals small out borrow storage. fall happened think what few there? landfill the and a on have did I color Any You pipeline, of compensating pit

John Albright

I think, well, I do.

owner is to, so the county it's of or really bit a small to it. of no it's easement But site road. a neighboring anything, easement obviously And clear to you site, give a the granularity and the of get the just It's it's land. just the road a not So transaction. dirt really the difficult to kind was there's with

just get that it's some And away. squared going so to time take to

it's So are and still up the interested, on to of just kind clean really come then them. easement the us buyers to back

regards was the they're purchase closed. try to a That and -- just did more transaction when dropped that parcel. deposit then it. that other contract a issue them still that we is XX was to It to get a timing get to going with their the And though, that when behind. keep acres entitlements was to assisted of for interested more called they living left property Even group

back could around. that So come

Craig Kucera

me the I'll in back and from more hop One queue.

rate to wanted about And think that that, proxy how battle was should with it behind on circle Just kind G&A, down forward? is decent year-over-year. run you, a you Or was think maybe going about little that? to of a lighter nicely a or

Mark Patten

probably variable. thing a think good create the Actually, mean, When you that's lot if look don't think be might the of things we a of that. I only really that comp, pretty alterations only rate. thing, I will at that's kind G&A it, a from you're run you when that stock of have including

Operator

go ahead. question Brian comes Partners. Boston from next of Our Please Rohman

Brian Rohman

question. morning. Craig my great Good Frankly, He such did asked a job.

and thanks, Craig, So,

Mark. John, and

Operator

next Steve ahead. will come Private our Instructions]. Please [Operator And from Olson, a question Investor. go

Unidentified Analyst

the million disclosed the thinking on management the authorization? update us Can on and number Board’s that January earlier comment on the remaining it of was I did the and a year new this authorization notice $XX you buyback. on not on shares

Mark Patten

that The for call. program fully Steve. Actually, Thanks, was approved great a on By coming question. the actually been has way the in January thanks utilized.

wrapped So that's now been up.

John Albright

to regards of this that, quite program a with new very active something like and shares obviously, we're then And a or purchased bit year.

we've I a in future, pretty the revisit the good amount in half year. that like So, something done be feel could first we’d of the but here

Unidentified Analyst

there regarding is and ahead that uncertain the then lien Okay. And Carpenter as is mentioned, is be a there The guess lease? entity was about lease release to The I a land building loan, first But any investment, to the interest, the for press referred to subject the leasehold might a being Hotel that that. versus because debt the priority us mortgage. subject it's a land of other or bit I security on a that little --

John Albright

leasehold in that loan, it gap it's no thing of loan, there's of really front the the only in lease. so front is Yes, our ground

Unidentified Analyst

questions rent comment about question, in believe they And of the the Craig's Maybe to will -- your company similar tenant Mark, not Okay. reimbursing the books? because you about liability to they reimbursing other operator I beachfront, assume improvement for upon because be tenant they they the guess the have restaurant, guess, cash to new spent get to answer can them, tenant more the not or reimburse flow, you based other I is I than the spent that I tenant improvements. earlier Cocina. kind mentioned obligated improvements. improvements, will on that CTO lower

John Albright

Yeah is maybe Steve, of with John, help I'll part it. out this

transaction. So are own, we're new tenant some not a they could we there instance, be in, safe other basically there the it's to the of kitchen in buy they’ve all new forth. in that's beyond a will negotiation. stuff throes over But the that And and does order and tenant that to tenant the equipment final the some need because there, to Cocina payment improvements that which for for that of in say did, that requirement costs in would any put seamless facilitate so TI coming

Unidentified Analyst

holding those Western to ground $XX is invest, returns kind think, it’s of or And or view Can investments you to difference, type what sales significantly investments? periods other can where of The as what future? Virginia land different. in Okay. we or investment how you plus in or you the see put lease expect comment million investment the the expected you

John Albright

somewhere X% better. return or Yes, past investments think, in target we’ve we so disclosed with that unleveraged I an our the total

investments sort in so these different manners. profile have of And of all return that

lease in of the buyout on leasehold a the to escalation. it has And So the likely going the most point, perhaps. for initial some is instance as ground yield lease, annual ground at going owner the an that low --

massive there And so the a distance, then building building, Brookfield where building, inside there's development a in general in out fits tenant is improving put us. new that under of station away is with less walking going capital lease the almost nicely basically has And rapidly from construction. has the that very than mile a a Wegmans built total basically from area dynamics return and new a half in. of within Western, in new on metrics that quick lot metro

So that we profile like lot.

the investments. So thoughts how and kind look the on we returns of at that's those

Unidentified Analyst

XXX self-development company portion or O'Connor, potential on question entering land under acres, that final any ground parcel? is of the there for the large to was that into just a And contract any update leases on

John Albright

Yes.

third quarter in and will on the for good that. So definitely we probably question. more color probably And give you dive

site very -- that a actively couple leasing have finally we've site gotten And we that feel we a group. -- a are best. different feel versions We plans hired group, retail plan leasing we work a

with been and contractors, talking on the so dialogue the in in and the we’ve getting estimates And that tenants. at to or squared we're time others. we're picked cost have with away. tenants And some the working also active of O'Connor same to on engineers up that And talking civil

So activity in short, have quarter. you the more color there story long for we'll and is next

Operator

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

John Albright

much you attending very for this call. Thank

Operator

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

You may now disconnect.

CTO Realty Growth (CTO) 18 Jul 192019 Q2 Earnings call transcript