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Section 1: 8-K (8-K)

cto_Current_Folio_8-K_Investor_Presentation_04162019

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): April 16, 2019

 

Consolidated-Tomoka Land Co.

(Exact name of registrant as specified in its charter)

 

Florida

001-11350

59-0483700

(State or other jurisdiction of
incorporation)

(Commission File Number)

(IRS Employer Identification
No.)

 

 

1140 N. Williamson Blvd.,
Suite 140
Daytona Beach, Florida

32114

 

(Address of principal executive
offices)

(Zip Code)

 

Registrant’s telephone number, including area code: (386) 274-2202

 

Not Applicable

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

 

 


 

Item 7.01. Regulation FD Disclosure.

 

A copy of material that will be used in investor presentations delivered by representatives of Consolidated-Tomoka Land Co. (the “Company”) from time to time is attached to this Current Report on Form 8-K as Exhibit 99.1. These materials are dated April 16, 2019 and the Company disclaims any obligation to correct or update these materials in the future.

 

The information contained in this Current Report Form 8-K is being furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits

 

 

99.1

Investor Presentation – April 16, 2019

 


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: April 16, 2019

 

 

 

 

 

By:

/s/Mark E. Patten

 

Mark E. Patten

 

Senior Vice President and Chief Financial Officer

 

Consolidated-Tomoka Land Co.

 

 


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Section 2: EX-99.1 (EX-99.1)

cto_Ex99_1

Exhibit 99.1

 

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NYSE American: CTO 1st QUARTER 2019 INVESTOR PRESENTATION MOVING TO THE NEXT STAGE 50 YEARS AS A PUBLIC COMPANY Apollo 11 Launch July 1969

 


 

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FORWARD LOOKING STATEMENTS CONSOLIDATED TOMOKA 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 following: 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 improvements affiliated with certain investments; the impact of permitting or other transactional activities on the total estimated gain for land sales, as well as the timing of the recognition of such gains;, our ability to obtain necessary governmental approvals for our land transactions or to satisfy other closing conditions; the risks associated with development activities including potential tax ramifications; the ability to execute share repurchase transactions; the completion of 1031 transactions; the ability for the Company to convert to a real estate investment trust; the costs of improvements for the Golf Operations assets; the ability to achieve certain leasing activity including the timing and terms thereof; the Company’s determination to pay future dividends; as well as the uncertainties and risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2018, 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. 2 ENDNOTE REFERENCES (A) THROUGH (J) USED THROUGHOUT THIS PRESENTATION ARE FOUND ON SLIDE 30

 


 

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WHY CTO CONSOLIDATED TOMOKA As of April 12, 2019 (unless otherwise noted) Discount to NAV Organic Capital Source Portfolio Quality Equity Market Cap $ 306.6 million Debt (E) $ 229.2 million Total Enterprise Value (“TEV”) (E) $ 535.9 million Cash (including 1031 restricted cash) (1) $ 2.7 million Net Leverage (net debt to TEV) (E) 42.3% Annual Dividend (2)(G) $0.40 Closing Price $60.74 52-Week High $67.02 52-Week Low $49.23 Shares Outstanding 5.048 million (1) As of March 31, 2019 (2) Annualized based on Q1 2019 quarterly dividend declared 3 Income Property Portfolio Properties 46 States 14 Land Holdings Total Land Holdings ≈5,400 Acres Under Contract (all in Daytona Beach, FL) ≈3,241 % of Acres Under Contract 60% Total Value of Contracts $93.7 million (A)

 


 

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Q1 2019 HIGHLIGHTS CONSOLIDATED TOMOKA Continuing to Execute Our Strategy 4 MONETIZING LAND HARVEST MULTI-TENANT REDEPLOY PROCEEDS INTO SINGLE-TENANT RETAIL TOTAL SALES PROCEEDS: $3.3 million ACRES: ≈9.9 PRICE PER ACRE: $333,000 GAIN: $2.3mm ($0.32/share, net of tax) TOTAL SALES PRICE: $24.6 million LOCATION: Sarasota FL GAIN: $6.9mm ($0.96/share, net of tax) EXIT CAP RATE: 5.15% LAND SALE SHARE BUYBACK (1) INVESTED CAPITAL: $23.7 million TOTAL SHARES: 410,684 AVG. PRICE/SHARE: $57.79 MULTI-TENANT DISPOSITION RETURNING CAPITAL to SHAREHOLDERS (1) As of April 12, 2019

 


 

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’14 – ’18 CAGR 29% ’14 – ’18 CAGR 52% ’14 – ’18 CAGR 50% ’14 – ’18 CAGR 16% ($000’s) TRACK RECORD OF STRONG OPERATING RESULTS CONSOLIDATED TOMOKA Annual Results for 2013 –2018, 1st Quarter for 2019 ($000’s) Consistent Growth in Key Metrics (1) Basic Earnings per Share including from discontinued operations (2) Annual Results as of December 31 and 2019 as of 3/31/19 (3) Prior periods adjusted to reflect reclassification of Golf Operations as a discontinued operation 5 Total Revenues (3) Operating Income (3) Book Value Per Share Earnings Per Share (1) (2) $30,932 $37,755 $65,885 $86,317 $86,689 $14,259 $- $20,000 $40,000 $60,000 $80,000 $100,000 2014 2015 2016 2017 2018 Q1 2019 $11,947 $20,882 $37,982 $39,256 $63,493 $11,724 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 2014 2015 2016 2017 2018 Q1 2019 $21.83 $22.81 $25.97 $32.98 $38.95 $39.72 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 2014 2015 2016 2017 2018 Q1 2019 $0.00 $2.00 $4.00 $6.00 $8.00 2014 2015 2016 2017 2018 Q1 2019 $1.11 $1.44 $2.86 $7.53 $6.76 $1.21

 


 

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CTO SNAPSHOT CONSOLIDATED TOMOKA A Lot More Income than Land Percentages based on values derived on NAV worksheet on Slide #6 46 Properties 2.3 million Sq. Ft. Retail and Office NOI $32.3 million (C) Subsurface Interests >450,000 Acres 5,400 Total Acres 3,241 Acres (60%)(A) Under Contract for $93.7 million(A) Avg. Price of $29k/acre % of Total Value of Asset Components (1) As of April 12, 2019 (unless otherwise noted) 6 Income Land Other Components of CTO’s Value 71% 3% 26%

 


 

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NAV WORKSHEET (A)(F) CONSOLIDATED TOMOKA Indicative of Meaningful Discount in our Stock Price 7 Cap Rate on NOI (C) Contract amounts As of April 12, 2019 As of March 31, 2019 Reflects repurchase of 320,741 shares from CTO’s largest shareholder on 4/10/19 Excludes intangible lease liabilities As of April 12, 2019 (unless otherwise noted) Highlighted Components of NAV Basis for Value or Estimate Approx. Acres % of Total Income Properties @ 6.5% Cap Rate (F) Cap Rate on NOI (1) 497,300,000 $ Land Pipeline (Under Contract) Pipeline Amount (2)(A) 3,241 60% 93,700,000 $ Subsurface Interests Estimated Value (A) 15,000,000 $ Downtown Daytona Beach Land Book Value (3) 5,180,000 $ Golf + Mitigation /Impact Fee Credits & Other Assets Book Value (3) 4,300,000 $ Cash + 1031 Restricted Cash Pro Forma (4) 900,000 $ Total Value of Assets included in NAV 616,380,000 $ Less: Debt and Other Liabilities Debt (E) Pro Forma (4) (229,200,000) $ Other Liabilities (Excluding Def. Tax Liability) (5) Book Value (3) (15,100,000) $ Value of NAV Components - Excluding Available Land Holdings 372,080,000 $ 372,080,000 $ Plus: Estimated Value of Notable Available Land Parcels & Other Land Holdings Mixed Use Parcel Estimated Value 203 175,000 $ 225,000 $ 35,500,000 $ 45,700,000 $ Industrial Parcel Estimated Value 850 20,000 $ 40,000 $ 17,000,000 $ 34,000,000 $ E. of Williamson btwn LPGA & Strickland Estimated Value 155 70,000 $ 95,000 $ 10,900,000 $ 14,700,000 $ Clyde Morris & Rifle Range Road Estimated Value 58 40,000 $ 60,000 $ 2,300,000 $ 3,500,000 $ Range of Value Estimates - Notable Available Land Parcels 1,266 23% 65,700,000 $ 97,900,000 $ Subtotal of NAV Components 437,780,000 $ 469,980,000 $ Other Land Holdings 893 17% 8,000 $ 10,000 $ 7,100,000 $ 8,900,000 $ Total Land Holdings 5,400 Net Value of NAV Components 444,880,000 $ 478,880,000 $ Current Equity Market Cap @ April 12, 2019 (4) 306,627,061 $ 306,627,061 $ Estimated Range of Values per Acre (A) Value Range

 


 

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MOMENTUM MONETIZING LAND CONSOLIDATED TOMOKA Monetizing Land With Tax Deferred Strategy (Land Sales in $000’s) Dramatic Acceleration Monetizing Land Annual Land Sales: 2011 –2018, YTD Q1 2019 & Pipeline(A) as of 4/12/19 8 (2) (1) (1) ACRES 11.7 99.6 114.0 707.6 1,700.9 2,697.3 2011 – 2018 and YTD Q1 2019 Total Sales  $158.0mm Acres Sold  5,358 Total Pipeline(A) : ≈3,241 Acres Proceeds ≈$93.7mm (1) (1) Includes sales proceeds representing reimbursement of infrastructure costs incurred by CTO of $1.4mm, $143k, $1.5mm and $1.6mm for 2015, 2016, 2017, and 2018, respectively (2) Includes proceeds of $15.3mm from the sale of 70% interest in mitigation bank joint venture (1) $66,100 $69,400 $2,990 $8,807 $23,946 $13,902 $47,011 $59,019 $3,300 $0 $15,000 $30,000 $45,000 $60,000 $75,000 $90,000 2013 2014 2015 2016 2017 2018 2019

 


 

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Contract/Parcel Acres Contract Amount (rounded) Price per Acre (rounded) Timing Residential (SF) 1,599 $27.0mm $17,000 ‘19 - ‘20 ICI Homes (SF) 1,016 $21.5mm $21,000 ‘19 Commercial/MOB 32 $8.1mm $253,000 ‘19 - ‘20 Residential (MF)/Retail 38 $6.1mm $161,000 Q4 ’19 Unicorp 31 $4.6mm $148,000 ‘19 - ‘20 Commercial/Retail 12 $4.5mm $375,000 ‘19 - ‘20 Residential (MF) 23 $4.0mm $174,000 ‘19 - ‘20 Unicorp 14 $3.8mm $271,000 ‘19 - ‘20 NADG 13 $3.0mm $231,000 ‘19 Senior Housing 13 $2.6mm $200,000 ‘19 - ‘20 Residential (SF) 98 $2.6mm $27,000 ‘19 - ‘20 Residential (MF)/Retail 19 $2.0mm $105,000 ‘20 ICI (SF) – Option Parcel 146 $1.7mm $11,000 ‘19 Borrow Pit 149 $1.6mm $11,000 ‘19 – ‘20 Compensating Storage 38 $0.7mm $19,000 ‘19 Totals/Average 3,241 $93.7mm $29,000 PIPELINE OF POTENTIAL LAND SALES(A) As of April 12, 2019 SF –Single Family; AR –Age Restricted, MF – Multi-Family MOB – Medical Office Bldg. Substantial Pipeline of Organic Capital for Growth to Income CONSOLIDATED TOMOKA 9 Total Acreage East of I- 95  900 Acres Total Acreage West of I-95  4,500 Acres 11 2 3 4 5 6 7 8 10 9 1 13 DIFFERENT BUYERS 60% of Remaining Land 12 13 14 15 1 2 3 7 11 8 9 5 10 6 4 12 13 14 15

 


 

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INCOME PROPERTY INVESTMENTS Converting into Income ($000’s) Total Acquisitions for 2011 – 2018, YTD Q1 2019 and Est. for Remainder of 2019 (J) Diversified Markets Higher Quality Properties Net of master tenant purchase contribution of $1.5 million for acquisition of income property in Aspen, CO in Q1 2018 Includes the investment of approximately $4.7 million for the acquisition of properties in downtown Daytona Beach, Florida in opportunity zone 10 2011 – 2018 Total Income Property Acquisitions  $470.0mm (J) As of April 12, 2019 (1)(2) $39,272 $42,166 $81,734 $91,475 $79,800 $109,800 $110,000 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 2013 2014 2015 2016 2017 2018 2019 Est.

 


 

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RECYCLING CAPITAL INTO SINGLE-TENANT CONSOLIDATED TOMOKA Proceeds $24.6 million Sarasota, FL MULTI-TENANT PROPERTY Sales Price/Sq. Ft.: $415 Harvesting Value Redeploying Capital 11 Monetize Multi-Tenant Property – Redeploy Proceeds into Single-Tenant Retail Jacksonville, FL CAP RATE: 5.98% Purchase Price: $32.3 million 8 SINGLE-TENANT RETAIL GROUND LEASES CAP RATE: 5.15% Acquired: October 2018 Sold: February 2019 Unlevered IRR 10.9%

 


 

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PORTFOLIO HIGHLIGHTS CONSOLIDATED TOMOKA Stronger Markets – Stronger Credits 12 (% = as a % of Total NOI) As of April 12, 2019 Total Square Feet (2) Investment Grade Tenants (H) ≈2.3 36% States 14 Total Properties Annualized NOI (1) (C) 46 $32.3 Single Tenants >10% of NOI (C) 2 Geographic Diversity by State and Market (1) $ in millions (2) Square feet in millions Florida 31% North Carolina 14% New Mexico 11% Oregon 10% California 9% Texas 8% Colorado 4% 7 Other States 13% Jacksonville 12.4% Orlando 11.0% Albuquerque 10.6% Raleigh 10.6% Portland 9.8% Santa Clara 7.7% Aspen 4.0% Atlanta 3.9% Daytona Beach 3.6% Tampa 3.1% Phoenix 3.1% Charlotte 2.9% Houston 2.8% Dallas 2.4% Reno 2.0% Fort Worth 1.9% Other 7.3%

 


 

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PORTFOLIO HIGHLIGHTS As of April 12, 2019 CONSOLIDATED TOMOKA Transitioning to Single-Tenant Over Time 13 Portfolio Mix Annual NOI (C) ≈$32.3mm Wgtd. Avg. Lease Term 8.4 yrs. (1) 14 States Square Feet ≈2.3mm High Quality & Diversified Portfolio (% = as a % of Total NOI) (1) Weighted average for Single-Tenant portfolio only is 9.4 years 49% 51% Office Retail 78% 22% Single-Tenant Multi-Tenant Number of income properly investments CTO headquartered in Daytona Beach, FL

 

 


 

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TOP TENANTS VERSUS PEERS CONSOLIDATED TOMOKA Which Would You Rather Own? 14 BBB 3.4% BBB- 3.3% BBB 3.0% BBB 2.6% B- 5.5% 8.9 47% 63%/37%/0% Discount -5% Stock Price vs NAV(1)(4) Avg. Lease Term (1)(4) Leverage Level (1) (4) Retail/Office/Other (4) 14.0 29% 83%/17%/0% Premium 28% B+ 2.4% NR 1.7% NR 2.2% NR 1.6% NR 2.7% 10.2 22% 100%/0%/0% Premium 40% BBB 6.0% AA 3.9% BBB 5.4% NR 3.2% A+ 2.9% 9.4 42% 51%/49%/0% Discount -35% BB+ 5.6% BBB+ 2.8% NR 4.0% AG Hill A 18.4% BBB 6.3% AA- 5.5% BBB 3.9% BBB 4.8% B+ 3.7% 9.2 23% 82%/16%/2% Premium 43% NR 4.1% NR 3.6% NR 3.4% B- 3.9% NR 5.0% 14.0 36% 100%/0%/0% Premium 18% AA- 5.4% B- 4.4% NR 4.0% B 3.6% B+ 4.3% 11.5 29% 100%/0%/0% Premium 25% NR 10.6% CTO info as of April 12, 2019 and Discount to NAV from B Reilly FBR NAV as of January 11, 2019; CTO Avg. Lease Term is STNL properties only BLUE Letters denote S&P Investment Grade ratings % per tenant is as % of NOI for CTO, as of April 12, 2019, % of Base Rent (for ADC, VEREIT, NNN, O, EPRT), Rent + Interest for STOR - as of March 31, 2019 Source for Peers: Janney Montgomery Scott LLC and BMO as of April 12, 2019

 


 

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HOW CTO’S PORTFOLIO STACKS UP CONSOLIDATED TOMOKA Stronger Demographics = Better Markets & Long-Term Real Estate 15 Three Mile Population(1)(3) Implied Cap Rate(2) 3-Mile Avg. Household Income(1)(3) CTO info as of Q1 2019 Peer implied cap rates info from Janney Montgomery Scott LLC as of April 12, 2019 Peer Demographic Info: B. Riley FBR as of 2018 Another Perspective on the Quality of CTO’s Portfolio (vs. Peers) Assumed Cap Rate (Highest Among Peers) 6.7% CTO Stock Price at 4/12/19 $60.74 Implied Value of Land/Acre (based on est. NAV) $6,100 Average Price of Land Under Contract $29,000/acre 84,575 58,917 55,798 50,932 52,430 63,800 0 20,000 40,000 60,000 80,000 100,000 CTO NNN O ADC VER STOR 5.2% 5.1% 4.7% 6.7% 5.7% 0.0% 5.0% 10.0% CTO NNN O ADC VER STOR $88,640 $76,293 $74,990 $70,831 $71,257 $72,042 $0 $20,000 $40,000 $60,000 $80,000 $100,000 CTO NNN O ADC VER STOR

 


 

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LIQUIDITY & LEVERAGE CONSOLIDATED TOMOKA Net Debt to TEV ≈ 42% Fixed Rate Debt ≈ 56% Unsecured Debt ≈ 76% Weighted Average Rate = 4.11% Average Duration 3.6 years As of April 12, 2019 (1) (unless otherwise noted) Debt Schedule (E) ($ in millions) Liquidity Position ($ in 000’s) Total Commitment of Credit Facility = $150 million Amount Outstanding at face value for Convertible Notes Stated rate = 30-Day LIBOR plus 150-220 bps Maturity includes first 10 years I/O Variable Rate Mortgage Loan fixed with Interest Rate Swap and Principal Amortization beginning during Q2 2018 Amount Outstanding Rate Maturity in Years Credit Facility (1) (3) $99.84 3.99% 2.4 Convertible Notes (2) $75.00 4.50% 1.0 CMBS Loan (4) $30.00 4.33% 15.6 Mortgage Loan (5) $24.39 3.17% 2.0 Totals/Average $229.23 4.11% 3.6 Liquidity & Flexibility Attractive Rates Largely Unsecured 16 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $2,682 $50,155 Available Credit Capacity Unrestricted Cash 1031 Restricted Cash

 


 

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RETURNING CAPITAL to SHAREHOLDERS (B)(D) CONSOLIDATED TOMOKA Cumulative From 2012 Through 4/12/19 Consistent Approach Accretive to NAV 17 Cumulative Shares Purchased Cumulative $ Repurchased ($ in millions) Aggregate Avg. Price/Share $54.51 ≈$7.4mm Remaining on $10mm BUYBACK PROGRAM approved in JAN 2019 Share Buybacks(B)(D) % of CTO Shares outstanding 0.25% 0.44% 2.05% 2.60% 2.32% 2.89% Aggregate Shares 1,025,941 (1) Includes repurchase of 320,741 shares on 4/10/19 from CTO’s largest shareholder, which was completed outside of the new $10 million buyback program 7.04% Aggregate % of Shares Outstanding Repurchased Since 2013 ≈18% $0.5 $1.4 $7.9 $15.3 $22.5 $32.3 $56.1 0 250,000 500,000 750,000 1,000,000 $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 2013 2014 2015 2016 2017 2018 2019

 


 

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RETURNING CAPITAL to SHAREHOLDERS CONSOLIDATED TOMOKA 2012 Through Q1 2019 Disciplined Approach to Returning Capital 18 Annualized Dividend per Share INCREASING DIVIDEND + PAID QUARTERLY Dividends(G) Cumulative % increase in Dividend 50% 75% 100% 200% 350% 575% Note: 2019 based on annualization of Q1 2019 dividend of $0.10 per share CAGR: 38% 900% $0.30 $0.40 $0.04 $0.06 $0.07 $0.08 $0.12 $0.18 $0.27 $0.10 $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.35 $0.40 $0.45 2012 2013 2014 2015 2016 2017 2018 2019

 


 

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2019 GUIDANCE CONSOLIDATED TOMOKA Monetizing Land Growing Free Cash Flow Recycling Capital 19 FY2019 Guidance Q1 2019 Actual Earnings Per Share (Basic) (1)(2) $6.75 - $7.50 $0.25 Incremental EPS (Basic) From Dispositions (2) $2.25 - $2.75 $0.96 Acquisition of Income-Producing Assets $80mm - $120mm - Target Investment Yield (Initial Yield – Unlevered) 5.75% - 7.25% - Disposition of Income Properties (2) $50mm - $100 mm $24.6mm Target Disposition Yield (2) 7.50% - 8.50% 5.15% Land Transactions (Sales Value) $50mm - $70mm $3.3mm Leverage Target (as % of Total Enterprise Value) (3) < 40% of TEV 42% Reaching full year target heavily dependent upon closing of certain land transactions Incremental EPS from Dispositions not included in EPS Guidance As of 4/12/19 – subsequent to repurchase of 320,741 shares from CTO’s largest shareholder on 4/10/19

 


 

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CONSOLIDATED TOMOKA 20 APPENDIX

 


 

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CONSOLIDATED TOMOKA (1) Two properties Single-Tenant Portfolio (C) APPENDIX 21 As of April 12, 2019 (C) Lease contains rent escalations Tenant/Building S&P Credit Rating Location Property Type Asset Type Rentable Square Feet Remaining Lease Term Fidelity N/A Albuquerque, NM Office Single Tenant 210,067 9.7 Wells Fargo A+ Portland, OR Office Single Tenant 211,863 6.8 Wells Fargo A+ Raleigh, NC Office Single Tenant 450,393 5.5 Hilton Grand Vacations BB+ Orlando, FL Office Single Tenant 133,914 7.7 AG Hill N/A Aspen, CO Retail Single Tenant 19,596 18.9 Lowe's BBB+ Katy, TX Retail Single Tenant 131,644 7.8 LA Fitness B+ Brandon, FL Retail Single Tenant 45,000 13.1 Harris Teeter BBB Charlotte, NC Retail Single Tenant 45,089 9.1 Landshark Bar & Grill NR Daytona Beach, FL Retail Single Tenant 6,264 13.8 CVS BBB Dallas, TX Retail Single Tenant 10,340 22.9 At Home B+ Raleigh, NC Retail Single Tenant 116,334 10.5 Reno Riverside BB Reno, NV Retail Single Tenant 52,474 0.7 Container Store NR Phoenix, AZ Retail Single Tenant 23,329 10.9 Rite Aid B Renton, WA Retail Single Tenant 16,280 7.3 Dick's Sporting Goods NR McDonough, GA Retail Single Tenant 46,315 4.8 Jo-Ann Fabric B Saugus, MA Retail Single Tenant 22,500 9.8 Best Buy BBB McDonough, GA Retail Single Tenant 30,038 1.8 Big Lots BBB- Germantown, MD Retail Single Tenant 25,589 4.8 Big Lots BBB- Glendale, AZ Retail Single Tenant 34,512 3.8

 


 

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CONSOLIDATED TOMOKA Single-Tenant Portfolio (C) APPENDIX 22 As of April 12, 2019 (C) Lease contains rent escalations Tenant/Building S&P Credit Rating Location Property Type Asset Type Rentable Square Feet Remaining Lease Term Walgreens BBB Alpharetta, GA Retail Single Tenant 15,120 6.6 Cocina214 NR Daytona Beach, FL Retail Single Tenant 5,780 13.8 Chuys N/A Jacksonville, FL Retail Single Tenant 7,950 13.4 Wawa N/A Jacksonville, FL Retail Single Tenant 6,267 18.8 Walgreens BBB Clermont, FL Retail Single Tenant 13,650 10.0 Firebirds N/A Jacksonville, FL Retail Single Tenant 6,948 8.6 Bank of America A+ Monterey, CA Retail Single Tenant 32,692 1.7 Staples B+ Sarasota, FL Retail Single Tenant 18,120 2.8 Outback BB Charlottesville, VA Retail Single Tenant 7,216 12.5 Chase A+ Jacksonville, FL Retail Single Tenant 3,614 18.5 Outback BB Charlotte, NC Retail Single Tenant 6,297 12.5 Outback BB Austin, TX Retail Single Tenant 6,176 12.5 Cheddars N/A Jacksonville, FL Retail Single Tenant 8,146 8.5 Scrubbles N/A Jacksonville, FL Retail Single Tenant 4,512 18.6 Carrabas BB Austin, TX Retail Single Tenant 6,528 12.5 Moes N/A Jacksonville, FL Retail Single Tenant 3,111 18.7 PDQ N/A Jacksonville, FL Retail Single Tenant 3,366 8.3 Macaroni Grill N/A Arlington, TX Retail Single Tenant 8,123 15.0 Wawa N/A Winter Park, FL Retail Single Tenant 6,119 19.9 Barnes & Noble/Wawa NR Daytona Beach, FL Retail Single Tenant 28,000 - Total Single Tenant 1,829,276 9.4

 


 

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CONSOLIDATED TOMOKA Multi-Tenant Portfolio APPENDIX 23 (C) As of April 12, 2019 (C) Lease contains rent escalations Tenant/Building S&P Credit Rating Location Property Type Asset Type Rentable Square Feet Remaining Lease Term 3600 Peterson NR Santa Clara, CA Office Multi-Tenant 75,841 3.0 245 Riverside Ave N/A Jacksonville, FL Office Multi-Tenant 136,856 3.0 The Grove B Winter Park, FL Retail Multi-Tenant 112,292 8.9 Westcliff Shopping Center B Ft. Worth, TX Retail Multi-Tenant 136,185 3.3 Fuzzy's/World of Beer NR Brandon, FL Retail Multi-Tenant 6,715 5.6 7-Eleven / Vacant AA- Dallas, TX Retail Multi-Tenant 4,685 5.5 Total - Multi-Tenant 472,574 4.3

 


 

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APPENDIX CONSOLIDATED TOMOKA > 600 Homes Sold Since Opening in Q4 2017 Active Adult Community – 3,400 Total Homes Planned Development in Progress on Land Sold by CTO 24 Commercial/Retail Development LPGA Blvd New Phases Amenities Under Construction

 


 

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APPENDIX CONSOLIDATED TOMOKA At Tomoka Town Center 276-Unit Luxury Rental Community Development in Progress on Land Sold by CTO 25 Projected development costs $39 million Final Site Approval expected Feb ’18 Construction start date Spring ‘18 Opening expected Q2 2019 Tomoka Pointe

 


 

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APPENDIX CONSOLIDATED TOMOKA Membership Wholesale Club Only New Development of Sam’s Club in U.S. Development in Progress on Land Sold by CTO 26

 


 

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APPENDIX CONSOLIDATED TOMOKA New Distribution Center & New Office Last Mile Distribution Center for Amazon Development in Progress on Land Sold by CTO 27 Future Home of Costa Del Mar

 


 

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APPENDIX CONSOLIDATED TOMOKA New Multi-Family Location 300 Unit Multi-Family Property 28 Development in Progress on Land Sold by CTO LPGA Blvd

 


 

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APPENDIX CONSOLIDATED TOMOKA Williamson Blvd. & Mason Avenue Self Storage Property 29 Development in Progress on Land Sold by CTO

 


 

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END NOTES CONSOLIDATED TOMOKA 30 End Notes references utilized in this presentation 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 will close or the timing or final terms thereof. Certain transactions require the Company to incur the cost to provide mitigation credits necessary for applicable regulatory permits for the buyer. There can be no assurances regarding the likelihood or timing of future execution of the Company’s share repurchase program. Net operating income (“NOI”) relates to our Income Property Operations segment and is calculated based on our current portfolio as of April 12, 2019 reflecting: (i) expected estimated annualized rents and costs as of and for the twelve months ending March 31, 2019; (ii) excluding non-cash items including straight-line rent and amortization of lease intangibles and depreciation; plus (iii) annual revenue from billboard leases. 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. Debt amount includes the face value of the Convertible Notes as of March 31, 2019 and the Credit Facility balance as of 4/12/19. There can be no assurance that the cap rate range is the proper range for the Company’s portfolio of income properties or that such cap rate range would equate to an appropriate valuation range that the Company might achieve should the income property portfolio be sold as a portfolio, individually, or as part of more than one smaller portfolios comprising the entirety of the Company’s portfolio. Dividends are set by the Board of Directors and declared on a quarterly basis, there can be no assurances as to the likelihood or amount of dividends in the future. Investment grade tenants are defined as tenants with a credit rating of BBB- or higher from the S&P rating agency and is based on our annualized rental revenue that is generated from income properties leased to investment grade tenants, including properties leased to subsidiaries of investment grade companies. There can be no assurances regarding the likelihood of achieving the potential net operating cash flow. There can be no assurances regarding the amount of our total investments or the timing of such investments.

 


 

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NYSE American: CTO 1st QUARTER 2019 INVESTOR PRESENTATION BUILT TO LAST 1140 N. Williamson Boulevard, Suite 140 Daytona Beach, FL 32114 P: 386.274.2202 Info@ctlc.com www.ctlc.com For additional information, please see our most recent Annual Report on Form 10-K, copies of which may be obtained by writing the corporate secretary at the address noted, or at www.ctlc.com. Contact Us Investor Relations: Mark E. Patten P: 386.944.5643 mpatten@ctlc.com

 


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