DAYTONA BEACH, Fla., Oct. 16, 2019 (GLOBE NEWSWIRE) — Consolidated-Tomoka Land Co. (NYSE American: CTO) (the “Company”) today announced its operating results and earnings for the quarter and nine months ended September 30, 2019.
QUARTER HIGHLIGHTSLand HoldingsAs announced earlier today, the Company closed on the sale of a controlling interest in a wholly-owned entity that holds the Company’s remaining land portfolio of approximately 5,300 acres (the “Land Venture”), including the land parcels the Company currently has under contract, to certain funds managed by Magnetar Capital (“Magnetar”) for total proceeds to the Company of approximately $97.0 million (the “Land Transaction”). The Company may, in the future, receive additional proceeds from the Land Venture in the form of distributions under certain circumstances, based upon the timing and amount realized when the land is ultimately sold by the Land Venture. There can be no assurance as to the likelihood or receiving such distributions, or the amount or timing thereof.As a result of the Land Venture the Company has not provided an update of the land transaction pipeline in this earnings release.Income Property PortfolioIn four separate transactions, acquired 4 single-tenant net lease retail properties for a total investment of approximately $49.5 million, reflecting a weighted average investment cap rate of approximately 6.32%. The four properties had a weighted average lease term of approximately 36.7 years.Sold a 1.56-acre outparcel subject to a ground lease with Wawa, located in Winter Park, Florida, for a sales price of approximately $2.8 million for a gain of approximately $2.1 million, or $0.33 per share, after tax.Commercial Loan Investment PortfolioOriginated a leasehold mortgage loan on the Carpenter Hotel totaling approximately $8.25 million with an interest rate of approximately 11.5%.Book Value Per ShareBook value per share totaled $40.38 as of September 30, 2019; an increase of $1.44 per share, or nearly 4%, compared to year-end 2018.Income Property UpdateThe following table provides a summary of the Company’s income property portfolio as of September 30, 2019 compared with the portfolio as of September 30, 2018:Included in the aggregate investment of approximately $49.5 million, is the purchase of approximately 1.4 acres of land under the Carpenter Hotel in Austin, Texas, for approximately $16.25 million which is leased to the seller pursuant to a new 99-year ground lease (the “Ground Lease”). The Ground Lease includes annual escalations and certain future repurchase rights. Pursuant to FASB ASC Topic 842, Leases, due to the future repurchase rights, the Ground Lease does not qualify for treatment as a property purchase and has been accounted for on the consolidated balance sheets as an increase in commercial loan investments of approximately $16.25 million as of September 30, 2019 (the “Ground Lease Loan”). The Company has imputed interest on the Ground Lease Loan which is being recognized as interest income on commercial loan investments in the Company’s consolidated statements of operations.Commercial Loan Investments UpdateAs of September 30, 2019, the Company’s commercial loan investment portfolio consisted of two loans totaling approximately $16.25 million in principal, including an $8.0 million first mortgage bridge loan secured by 72 acres of land in Orlando, Florida, and an $8.25 million leasehold mortgage loan on an upscale hotel property in Austin, Texas. The weighted average interest rate on the two loans was approximately 11.75% as of September 30, 2019 and the remaining term to maturity was 0.74 years, exclusive of the Ground Lease Loan.Golf Operations UpdateThe Company is under contract to sell the Golf Operations to a third-party for a projected contract price in excess of the adjusted book value as of September 30, 2019. The transaction is expected to close in the fourth quarter of 2019.Debt SummaryThe following table provides a summary of the Company’s long-term debt as of September 30, 2019:    ⁽¹⁾       Utilized interest rate swap to achieve fixed interest rate of 3.17%OPERATING RESULTS3rd Quarter ended September 30, 2019 (compared to same period in 2018):
The operating results in the 3rd Quarter ended September 30, 2019 were impacted by a 17% increase in general and administrative expenses as noted in the following summary (compared to the same period in 2018):For the Nine-Months ended September 30, 2019 (compared to same period in 2018):
The operating results in the Nine Months ended September 30, 2019 benefited from a 4% reduction in general and administrative expenses as noted in the following summary (compared to the same period in 2018):2019 GuidanceThe following summary provides the Company’s guidance for the full year ending December 31, 2019:    ⁽¹⁾       Excludes EPS from the disposition of the multi-tenant properties completed year-to-date in 2019.    ⁽²⁾       As of October 16, 2019    ⁽³⁾       Leverage as a percentage of Total Enterprise Value net of cash and 1031 restricted cash was approximately 46% as of September 30, 2019.Announces Quarterly Dividend of $0.13 per ShareThe Company’s Board of Directors declared a quarterly dividend of $0.13 per share payable on November 29, 2019, to shareholders of record on November 12, 2019, an increase of approximately 18% from the dividend paid in the third quarter of 2019.Laura M. Franklin, Chairman of the Board, stated, “The Board is pleased that the operating results of the Company continue to support our dividend tradition that began in 1976.  The Board will continue to review its dividend strategy on a regular basis.”3rd Quarter Earnings Conference Call & WebcastThe Company will host a conference call to present its operating results for the quarter and nine months ended September 30, 2019 on Thursday, October 17, 2019, at 9:00 a.m. eastern time. Shareholders and interested parties may access the earnings call via teleconference or webcast:Please dial in at least fifteen minutes prior to the scheduled start time and use the code 7721439 when prompted.
A webcast of the call can be accessed at: http://services.choruscall.com/links/cto191017.html.To access the webcast, log on to the web address noted above or go to http://www.ctlc.com and log in at the investor relations section. Please log in to the webcast at least ten minutes prior to the scheduled time of the Earnings Call.About Consolidated-Tomoka Land Co.Consolidated-Tomoka Land Co. is a Florida-based publicly traded real estate company, which owns, as of October 16, 2019, a portfolio of income investments in diversified markets in the United States including approximately 2.3 million square feet of income properties. Visit our website at www.ctlc.com.We encourage you to review our most recent investor presentation for the quarter and nine months ended September 30, 2019, and other presentations that are available on our website at www.ctlc.com.SAFE HARBORCertain statements contained in this press release (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 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 the completion of 1031 exchange transactions, the modification of terms of certain land sales agreements, uncertainties associated with obtaining required governmental permits and satisfying other closing conditions, as well as the uncertainties and risk factors discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018, as 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.CONSOLIDATED-TOMOKA LAND CO.
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED-TOMOKA LAND CO.
CONSOLIDATED STATEMENTS OF OPERATIONS
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