2016 I nve sto r Da y Pre se nta tio n Pub lishe d: De c e mb e r - - PowerPoint PPT Presentation

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(NYSE MK T : CT O) 2016 I nve sto r Da y Pre se nta tio n Pub lishe d: De c e mb e r 1, 2016 If we refer to we, us, our, or the Company, we mean Consolidated-Tomoka Land Co. and its consolidated subsidiaries. Certain


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SLIDE 1

2016 I nve sto r Da y Pre se nta tio n

Pub lishe d: De c e mb e r 1, 2016

(NYSE MK T : CT O)

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SLIDE 2

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 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 infrastructure work affiliated with certain land transactions and the impact on the total estimated gain, as well as the timing of the recognition of that gain, our ability to obtain necessary governmental approvals for our land transactions or to satisfy other closing conditions, the ability to execute share repurchase transactions, the ability for the Company to convert to a real estate investment trust, as well as the uncertainties and risk factors discussed in

  • ur Annual Report on Form 10-K for the fiscal year ended December 31, 2015, 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 (M) provided in this presentation are defined on Slide 67
  • All Financial Information pertaining to fiscal year 2016 is unaudited.
  • This presentation supplements and updates certain portions of the Company’s Q3 Investor

Deck (published October 21, 2016 and available on the Company’s website); however, in the event any of the information herein conflicts with information in the Q3 Investor Deck, the information herein shall be deemed to supersede such information in the Q3 Investor Deck.

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SLIDE 3

3

I nve sto r Da y Ag e nda

Topic Speaker(s) Time Breakfast – SWOT Analysis Gregg Logan - RCLCO 8:30 a.m. – 9:00 a.m. CTO Presentation John Albright/Mark Patten 9:10 a.m. – 10:00 a.m. Real Estate Market Panel Bill Bullock - Minto Communities Robert McDaniel - Integra Land Co. Dick McNerney - Adams Cameron David Murphy - CBRE Jim Wiseman - Margaritaville 10:10 a.m. – 11:00 a.m. Economic Development Kerry Karl – Volusia County Association for Responsible Development (VCard) 11:00 a.m. – 11:30 a.m. Lunch - Property Tour 11:45 a.m. – 1:00 p.m.

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SLIDE 4

4

Sna psho t

OPERATING SEGMENTS

LAND HOLDINGS INCOME PROPERTIES LOAN INVESTMENTS SUBSURFACE INTERESTS

10,500 Acres Undeveloped Land 31 Properties ≈1.7 million sq. ft Retail & Office 3 Loans Hotel & Retail ≈500,000 Acres Book Value $0 With  4,200 Acres Under Contract $100mm (B) NOI = $19.2 million(H) (1) Value @ 6.5% Cap Rate = $295mm

  • Avg. Yield 8.8%

$24 million Renegotiating Contract Equity Market Cap $305.5 million Debt (A) $171.6 million Total Enterprise Value (‘TEV’) (A) $477.1 million Cash (including 1031 restricted cash) $ 3.8 million Leverage (net debt to TEV) (A) 35.2%

As of November 30, 2016 (unless otherwise noted)

I nc o me  L iq uidity  Asse t Ric h

(1) Includes approximately $200k of NOI from billboard leases

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SLIDE 5

5

As of November 30, 2016 (unless otherwise noted)

Equity Market Cap [closing price $53.37] $306mm Debt (A) $172mm 1031 Tax Deferred Liabilities (1) $56mm Total Adjusted Enterprise Value (TAEV)(A) $534mm Less: Income Properties (Value @ 6.5% cap rate on NOI) ($295mm) Less: Contract Amount for Subsurface Interests TBD Less: Basis in Commercial Loan Investments ($24mm) Less: Cash & 1031 Restricted Cash ($4mm) Less: Value of Impact Fees (M) & Mitigation Credits, Golf, and Other Assets (1) ($19mm) Net TAEV Attributable to Land $192mm Less: Value of Land Pipeline Contracts (4,200 acres @ approx. $24k/acre)(B) ($100mm) Net TAEV Attributable to Remaining 6,300 Acres of Land (“Remaining Acres”) (A) $92mm Remaining Acres 6,300 Implied Net TAEV per Acre Attributable to Remaining Acres (A) $14,603 per Acre Implied Net TAEV per Acre Attributable to Remaining Acres (excluding 1031 Def Tax Liab.) (A) $5,714 per Acre

Ho w L

  • w do e s Sto c k Ma rke t Va lue o ur L

a nd? (L

)

(1) As of September 30, 2016

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SLIDE 6

 Monetizing Land

$40.4mm in sales (271 acres), $149k/acre

  • Approx. $100mm under contract (4,200 acres, 40% of land)

 Transformative Deals 76.5 acres sold - 630,000 sq ft Distribution Center [500 jobs]

38.93 acres sold - 350,000 sq ft Tanger Outlet Center [900 jobs]

 Investment in Income Invested approx. $280.4mm in 34 properties, 8 new states  Subsurface Interests

Over $12.4mm in revenues since 2012 Negotiating Monetization of components of portfolio

 Growing Cash Flow

Strong positive cash flow growth since 2012

 Share Buyback (C)

Since 2014: $14.1mm, ≈283k Shares @ Avg Price = $49.89/share

 Dividend (D)

Increased from $0.04/share semi-annual to $0.04/share quarterly

6

F

  • c use d o n Sha re ho lde r Re turns

From 2012 Through November 30, 2016 (unless otherwise noted)

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SLIDE 7

Sha re Pric e Pe rfo rma nc e

7

August 1, 2011 through November 30, 2016

Symbol Total Return Compounded Annual Return CTO 86.36% 12.37% S&P 500 SPX 91.76% 12.97% REIT Index RMZ 65.10% 9.85% Russell 2000 RTY 79.83% 11.62%

Ne w Ma na g e me nt De live ring Sha re ho lde r Re turns

(Adjusted for dividends) Source: Bloomberg

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SLIDE 8

8

G&A E xpe nse s – Ope ra ting E

ffic ie ntly

($’s in millions)

Annual Results for 2013 thru 2015 and YTD Q3 2016

% of Market Cap (5) 1.3%

2013 2014 2015 YTD 2016 Reported G&A $5.4 $7.0 $8.8 $8.5 Less: Adjustments (1) Stock Compensation (2) (0.9) (1.3) (2.2) (2.9) Environmental Reserves (3)

  • (0.1)

(0.9)

  • Shareholder Matters
  • (0.1)

(1.3) Other G&A (4) (0.1) (0.9) (0.3) (0.2) G&A – Net of Adjustments $4.4 $4.7 $5.3 $4.1

E ffic ie nt Ope ra tio ns14 E mplo ye e s

(1) Adjustments for non-cash charges and certain non-recurring expenses (2) Non-cash charge (3) Incudes non-recurring environmental reserves ($500k for state environmental matter, $188k for federal environmental matter) and legal costs associated with each (4) Pension charge in 2014 (Approx. $700k non-cash), severance primarily in 2013 and other non-recurring charges (5) Utilizing Market Cap as of November 30, 2016

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SLIDE 9

F A B E C I H J K L G M D

9

L a nd Ho lding s

L a nd Ho lding s

Under Contract (B)

K e y Pa rc e ls

(1) Includes Option parcel of approximately 146 acres for $1.4mm

Parcel Description Potential Use Acres A Minto II Residential 1,686 B Minto I Residential 1,581 C ICI Residential 750 D South LPGA Parcel Residential 194 E Mitigation Land Parcel Industrial 2,366 F Parcel F Residential 1,053 G Tomoka Town Center - NADG Commercial 82 H NW Quadrant - LPGA & I-95 Commercial 238 I Industrial Park Industrial 865 J Parcel Across from FL Hospital Commercial 83 K SE Quadrant - LPGA & Clyde Morris Commercial/Industrial 130 L E of Williamson, N or LPGA Residential 200 Subtotal 9,228 Other Acreage East of I-95 Under Contract 105 Remaining Acreage East of I-95 362 Remaining Acreage West of I-95 385 Remaining Acreage Industrial 210 Approximate Additional Acreage 285 Total Acreage 10,575

(1)

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SLIDE 10

10

L a nd Ho lding s

Po te ntia l L a nd Sa le s (B)

T

  • ta l Po te ntia l Sa le s = a ppro x. $100mm

 4,200 Ac re s  $24k/ a c re

Total Acres West of I-95

  • Approx. 9,300 acres

Total Acres East of I-95

  • Approx. 1,200 acres

As of November 30, 2016

SF – Single Family; AR – Age Restricted Commercial/Retail

1 2 3 4 7 6 5

Contract/Parcel Acres Contract Amount Price per Acre (rounded) Timing Minto (AR Residential) 1,581 $28.7mm $18,000 ’16 – ‘17 Minto (AR Residential) 1,686 $31.4mm $19,000 ’18 - ‘19 ICI (SF Residential) 604 $9.0mm $15,000 ’16 – ‘17 ICI Option Parcel (SF) 146 $1.4mm $10,000 ’16 – ‘17 North Amer. Dev Grp 82 $20.2mm $248,000 ’17 – ‘18 Commercial/Retail 4 $1.2mm $294,000 ‘18 Mixed-Use Retail 22 $5.6mm $253,000 ’17 Commercial/Retail 6 $1.5mm $245,000 ’17 SF Residential 73 $1.0mm $14,000 ’17 Totals/Average 4,200 $100mm $24,000

3 8 1 2 5 6 4 7 8

3A 3A

(1)

(1) Contract amount may be reduced if Minto elects to not utilize Seller financing option

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SLIDE 11

11

L a nd Ho lding s

Po te ntia l L a nd Ab so rptio n – We st o f I

  • 95 (B)

Parcel Use Status Timing

Contract Amount/Value Estimate A Residential U/C ‘18-‘19 $31.4mm B Residential U/C ‘16-‘17 $28.7mm C Residential U/C ‘16-‘17 $10.4mm (1) D Residential N/A N/A $10k- $25k/acre E Mitigation Bank I/P TBD $5k-$12k/acre F Residential N/A TBD $15k- $20k/acre 1,053 Acres

F A B E C D

1,686 Acres 1,581 Acres 750 Acres 2,366 Acres

  • U/ C

– Unde r Co ntra c t

  • I

/ P – I n Pro c e ss (1) Includes Option parcel of approximately 146 acres for $1.4mm

194 Acres

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SLIDE 12

12

L a nd Ho lding s

Po te ntia l L a nd Sa le s – Minto Co mmunitie s (B)

Ag e Re stric te d Re side ntia l

Phase I

  • 3,600 units
  • ≈200k SF Commercial

www.Minto.com

West of I-95

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SLIDE 13

13

L a nd Ho lding s

Po te ntia l L a nd Sa le s – I

CI Ho me s (B)

Sing le -F a mily Re side ntia l

  • 1,000- 1,200 Lots
  • 604 acres @ $9MM
  • 146 acres @ $1.4MM (1)

(1) Option parcel

West of I-95

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SLIDE 14

14

L a nd Ho lding s

Mitig a tio n Ba nk – Ana lysis o f Oppo rtunity (B)

2,366 Acres

 Gross Site Area 2,366 Acres  Development Costs $3mm - $5mm  Mitigation Credits 350-450 UMAM  Market Value of Credits $100k - $150k  Investment

  • Potential Land Value

$12mm - $30mm $5k - $12.5k/acre

  • Est. Dev. Costs

$3mm - $5mm

  • Total Est. Investment

$15mm - $35mm  Potential Value of Credits $35mm - $64mm

Po te ntia l Ac tiva tio n Within 2 ye a rs

West of I-95

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15

L a nd Ho lding s

No rth Ame ric a n De ve lo pme nt Gro up (B)

East of I-95

T

  • mo ka T
  • wn Ce nte r
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16

L a nd Ho lding s

No rth Ame ric a n De ve lo pme nt Gro up (B)

23.77 Acres 37.26 Acres [Closed Dec ‘15] 57.79 Acres (A) (A)

≈ 82 Ac re s unde r c o ntra c t - $20.2mm

Contractually Obligated to Close no later than 2018

East of I-95

Acres Under Contract

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17

L a nd Ho lding s

We ll-Po sitio ne d L a nd: I

ndustria l Pa rc e ls

Po te ntia l Va lue Ra ng e : $30k - $70k pe r Ac re

The value range is an estimate only and there can be no assurances that the value ultimately realized for this land will fall within the estimated range.

West of I-95

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SLIDE 18

18

L a nd Ho lding s

L a nd Hig hlig hts - E a st o f I

  • 95

A B E C D

The value ranges are estimates only and there can be no assurances that the value ultimately realized for this land will fall within the estimated range.

Parcel

  • Est. Value Range/Acre

A $150k-$275k B $75k-$170k C $50k-$125k D $200k-$300k E $100k-$200k

East of I-95

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19

L a nd Ho lding s

We ll-Po sitio ne d L a nd: No rth o f L

PGA

Po te ntia l Va lue Ra ng e : $150k - $275k pe r Ac re

The value range is an estimate only and there can be no assurances that the value ultimately realized for this land will fall within the estimated range.

East of I-95

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20

L a nd Ho lding s

We ll-Po sitio ne d L a nd: MOB/ Re ta il/ Multi-F

a mily

Po te ntia l Va lue Ra ng e : $120k - $150k pe r Ac re

The value range is an estimate only and there can be no assurances that the value ultimately realized for this land will fall within the estimated range.

East of I-95

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SLIDE 21

21

L a nd Ho lding s

We ll-Po sitio ne d L a nd: Distrib utio n/ I

ndustria l

Po te ntia l Va lue Ra ng e : $80k - $125k pe r Ac re

The value range is an estimate only and there can be no assurances that the value ultimately realized for this land will fall within the estimated range.

East of I-95

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22

L a nd Ho lding s

Mo ne tizing o ur L a nd (B)

Annual Land Sales for 2005 – 2015 and YTD 2016 & Pipeline as of 11/30/16 (Land Sales in $000’s)

Note: Multi-family included in residential

2012 – YT D 2016 T

  • ta l Sa le s  $40.4mm

Avg . Pric e / Ac re  $149k

E xe c uting Our Stra te g y

Average Price/Acre Residential 20,665 $ 100,000 $ 18,480 $

  • $
  • $
  • $
  • $
  • $
  • $
  • $

151,894 $

  • $

Commercial 140,116 $ 96,340 $ 166,392 $ 174,669 $ 158,307 $

  • $
  • $

37,133 $ 256,542 $ 86,952 $ 204,939 $ 186,820 $ Total 107,754 $ 96,535 $ 47,468 $ 174,669 $ 158,307 $

  • $
  • $

37,133 $ 256,542 $ 86,952 $ 197,571 $ 186,820 $ 23,755 $ Total Acres Sold 336.0 214.5 486.5 24.4 15.8

  • 16.6

11.7 99.7 114.0 29.1 ≈4,200

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SLIDE 23