Inve stor Pr e se ntation – 2018 Annual Me e ting April 2018 E . Hyma n Ave nue & Hunte r Stre e t Do wnto wn Aspe n, Co lo ra do (NYSE Ame r ic an: CT O)
F o rwa rd L o o king Sta te me nts Forward–Looking Statements 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 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 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, as well as the uncertainties and risk factors discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, 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. Endnote references (A) through (H) provided in this presentation are defined on Slide 46 2
Disc ussio n Ag e nda E xe c utive Summa ry PART I Cre a ting Sha re ho lde r Va lue PART II E xe c uting Our Stra te g y PART III Bo a rd & Go ve rna nc e PART IV Winte rg re e n – Pe rfo rma nc e & I ssue s, Cla ims, a nd No mine e s PART V T hird-Pa rty Pe rspe c tive s PART VI Co nc lusio n PART VII Bio g ra phie s o f CT O’ s No mine e s APPE NDIX 3
E xe c utive Summa ry Why Ar e We He r e Again Yo u Ask? Winte rg re e n Ha s No mina te d T hre e o f the Sa me Dire c to r Ca ndida te s from 2017 E ve n Afte r CT O Sha re ho lde rs Ma de T he ir Vo ic e s He a rd b y Re je c ting T ho se Ca ndida te s in 2017 2017 Vo ting Re sults: Co st o f the 2017 Pro xy F ig ht: % of Support of T op 50 Co st to CT O’ s Sha re ho lde rs Una ffilia te d (1) Nomine e Institutiona l 2018 Vote s Ca st b e c a use o f Winte rg re e n Inve stors (1)(2) Nomine e F or • John P. Albr ight 86.1% 49 Jo hn J. Alle n 84.6% 48 $1.6 Million Nomine e s • L aur a M. F r anklin 86.1% 49 • William L . Olivar i 84.2% 49 o r O • CT Howar d C. Se r kin 79.6% 49 • T homas P. War low, III 78.2% 49 $0.17 o f • e e n Case y R. Wold 86.0% 49 e a rning s/ sha re • Nomine e s 12.6% 0 E lizabe th N. Cohe r nour gr • 12.6% 0 E van H. Ho Winte r E d wa rd W. Po llo c k 12.6% 0 • 12.5% 0 David J. Winte r s Sinc e 2015 Winte rg re e n’ s Ac tio ns Ha ve Co st CT O’ s Sha re ho lde rs Appro xima te ly $3 million o r $0.33 of e ar nings ! Winte r gr e e n is Wasting Shar e holde r ’s Mone y & Manage me nt’s T ime (1) E xc lude s Winte rg re e n sha re s vo te d a t the me e ting (2) So urc e : Da ta fro m Pro xyI nsig ht.c o m a nd its unive rse o f c o ve ra g e 4
E xe c utive Summa ry You Should Also Know About the “WINT E R- GRE E N- MAIL ” CT O’s Boar d made a mar ke t- base d offe r to buy Winte r gr e e n’s position in CT O Winte rg re e n re q ue ste d a n o ffe r fro m CT O to ac quir e all or a Ma rc h 1, 2018 tion o f Winte rg re e n’ s po sitio n in CT O substantial por CT O’ s Bo a rd sub mitte d a n o ffe r to a c q uire Winte rg re e n’ s sha re s a t a ic e – whic h a t 7% disc ount to the 30- day volume we ighte d ave r age pr Ma rc h 9, 2018 the time o f the o ffe r wo uld appr oximate $60 pe r shar e a s a “no nsta rte r” Winte r gr e e n r e je c te d CT O’s offe r pro po se d tha t CT O pa y Winte rg re e n a Winte r gr e e n’s c ounte r offe r Ma rc h 16, 2018 slight disc ount to a n assume d ne t asse t value of $86.94 – a pr e mium o f mor e than 40% ove r the r e c e nt mar ke t pr ic e CT O’s Boar d doe s not be lie ve paying any pr e mium to Winte r gr e e n is advisable a s it wo uld b e r its disr e war ding Winte r gr e e n for uptive s a nd the antic s at the e xpe nse of all of CT O’s othe r shar e holde r a ppro a c h to valuation is inc onsiste nt with pr e c e de nt tr ansac tions invo lving simila r situa tio ns Anothe r Indic ator of Winte r gr e e n NOT L ooking out for All CT O Shar e holde r s 5
E xe c utive Summa ry Situational Summar y Sto c k Ha s Outpe rfo rme d its Pe e rs a nd its I ndic e s De spite Winte r gr e e n ove r hang T ra c k Re c o rd o f Outsta nding Pe rfo rma nc e Consiste nt str ate gy sinc e 2011 that is ge ne r ating inc r e asing ope r ating inc ome and book value E ffic ie nt Org a niza tio n a nd Re turning Ca pita l to Sha re ho lde rs E ffic ie nt c ost str uc tur e , inc r e asing divide nds, and substantial shar e buybac ks T he Rig ht Bo a rd – Re fre she d, E xpe rie nc e d, with Ma jo r Sha re ho lde r Re pre se nta tio n E xpe r ie nc e inc lude s: Washington RE IT , T ishman Spe ye r , T r ize c Hahn, Car lson Capital , a nd Goldman Sac hs Stro ng Co rpo ra te Go ve rna nc e a nd T ra nspa re nc y Shar e holde r –fr ie ndly gove r nanc e , c ommunic ations, and tr anspar e nc y Winte rg re e n Ha s No Cre dib le Pla n a nd its No mine e s L a c k Re le va nt E xpe rie nc e Winte r gr e e n has no plan but many c onflic ts, nomine e s lac k public c ompany and r e al e state e xpe r ie nc e T he Re a l I ssue : Winte rg re e n F und’ s Pe rfo rma nc e a nd I lliq uid Sta ke in CT O apidly de c lining AUM, inability to e ffic ie ntly mone tize its ≈ 28% position in CT Re tur ns be low pe e r s & indic e s, r O CT O’s Boar d & Manage me nt – De live r ing Value for Our Shar e holde r s 6
E xe c utive Summa ry De live r ing on our T ar ge te d Str ate gy Mo ne tize the Co mpa ny’ s L a nd Ho lding s (Using 1031 struc ture ) e nt manage me nt - sold ≈ 2,685 ac r e s of land with additional ≈ 6,000 ac r Unde r c ur r e s unde r c ontr ac t (A) De plo y the Pro c e e ds fro m L a nd Sa le s into I nc o me -Pro duc ing Asse ts ) with ≈ $27.5 million in NOI tfolio value of >$400 million (F (C) , gr Por owing fr e e c ash flow Gro w, I mpro ve , E nha nc e a nd Dive rsify Our I nc o me Pro pe rty Po rtfo lio Be tte r mar ke ts, be tte r r e al e state , be tte r de mogr aphic s, be tte r te nants Gro w Ne t Asse t Va lue & Na rro w Disc o unt o f Sto c k Pric e to NAV Pr ude ntly mone tizing land, c onve r ting to inc ome , and inc r e asing c ash flows Ma inta in E ffic ie nt Ove rhe a d & Co nse rva tive Ba la nc e She e t Consiste nt le ve r age polic y of < 40% of T E V (appr oximate ly 33% at YE 2017 (E ) ) Re turn Ca pita l to Sha re ho lde rs (Buyb a c ks a nd Divide nds) Re pur c hase d >$22 million in CT O stoc k in past 4 yr s. – ac c r e tive to NAV; double d annual divide nd Co mmitme nt to Go ve rna nc e a nd Alig nme nt with CT O Sha re ho lde rs Aligne d c ompe nsation, annually e le c te d boar d, lar ge pe r c e ntage of NE Os’ ne t wor th in CT O stoc k As o f Ma rc h 29, 2018 (unle ss o the rwise no te d) Consiste ntly E xe c ute d Sinc e 2011 7
E xe c utive Summa ry Compone nts of CT O’s Value Othe r 8% Sub surfa c e Inte re sts ≈ 460,000 Ac re s 2 L o a ns Inc ome Avg . Yie ld 9.5% $11.9mm Princ ipa l 60% L PGA Inte rna tio na l % of T otal Value Go lf Club 36 Pro pe rtie s of Asse t ≈ 2.1 millio n Sq . F t. Compone nts (1) Re ta il a nd Offic e ≈ $27.5 millio n (C) NOI L and 32% ≈ 8,100 Ac re s ≈ 6,000 Ac re s (74%) (A) Unde r Co ntra c t/ T e rm She e t fo r ≈ $136.9 millio n (A) Avg . Pric e o f $23k/ a c re As o f Ma rc h 29, 2018 (unle ss o the rwise no te d) Mor e Inc ome T han L and – Re fle c ts Suc c e ssful E xe c ution of Str ate gy (1) Pe rc e nta g e s b a se d o n va lue s de rive d o n NAV wo rkshe e t in Co mpa ny’ s YE 2017 Inve sto r De c k upda te d thro ug h Ma rc h 29, 2018 (F ) 8
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