Consolidated-Tomoka Completes Sale of Approximately 30 Acres for $2.9 Million
April 26 2017 - 8:45AM
Business Wire
Consolidated-Tomoka Land Co. (NYSE MKT: CTO) (the “Company”)
today announced the closing of one of the land transactions it had
under contract of approximately 30 acres at a sales price of
approximately $2.9 million, or approximately $98,000 per acre (the
“Commercial Land Sale”). The land is located on the west side of
Interstate 95 on Tomoka Farms Road, immediately south of CarMax.
The estimated gain on the Commercial Land Sale is approximately
$0.6 million, or approximately $0.07 per share, after tax. The
purchaser has indicated its intention of developing an auto
dealership on the site. In addition, the purchaser has an
additional 12.7 acres under a six-month option for $160,000 per
acre or $2.0 million. The Company expects to utilize the proceeds
from this sale to acquire a replacement asset through the 1031
like-kind exchange structure.
Including this sale, in 2017, the Company has sold approximately
1,649 acres for an aggregate sales price of approximately $36.1
million, or nearly $22,000 per acre. The Company’s guidance for
2017 regarding total land sales was approximately $30mm - $50mm, of
which the Company has now exceeded the low end of our range and has
achieved approximately 72% of the upper end of the range. The
Commercial Land Sale was not included in the estimated land sales
to be closed in 2017 as part of the Company’s guidance.
As a result of this sale, the Company currently has eight (8)
executed purchase and sale agreements with eight (8) different
buyers, which in the aggregate represent the potential sale of more
than 2,100 acres, or approximately 26% of our land holdings, with
anticipated sales proceeds of approximately $80.0 million, or
approximately $38,000 per acre. Each of the transactions are in
varying stages of due diligence by the various buyers including, in
some instances, having made submissions to the planning and
development departments of the City of Daytona Beach and other
approval and permitting activities with other applicable
governmental authorities. In addition to other customary closing
conditions, most of the transactions are conditioned upon the
receipt of approvals or permits from various governmental
authorities, as well as other matters that are beyond the Company’s
control. If such approvals are not obtained, the prospective buyers
may have the ability to terminate their respective agreements prior
to closing. As a result, there can be no assurances regarding the
likelihood or timing of any of these potential land transactions
being completed or the final terms thereof, including the sales
price.
About Consolidated-Tomoka Land
Co.
Consolidated-Tomoka Land Co. is a Florida-based publicly traded
real estate company, which owns a portfolio of income investments
in diversified markets in the United States including approximately
1.9 million square feet of income properties, as well as
approximately 8,200 acres of land in the Daytona Beach area. Visit
our website at www.ctlc.com.
We encourage you to review our most recent investor
presentations for the quarter ended March 31, 2017, available on
our website at www.ctlc.com.
SAFE HARBOR
Certain 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, 2016 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.
IMPORTANT ADDITIONAL INFORMATION AND WHERE
TO FIND IT
The Company, its directors and certain of its executive officers
may be deemed to be participants in the solicitation of proxies
from the Company’s shareholders in connection with the matters to
be considered at the Company’s 2017 annual meeting of shareholders
to be held on April 26, 2017. On March 21, 2017, the Company filed
a definitive proxy statement (the “Proxy Statement”) with the U.S.
Securities and Exchange Commission (the “SEC”) in connection with
the solicitation of proxies from the Company’s shareholders for the
2017 annual meeting. INVESTORS AND SHAREHOLDERS ARE STRONGLY
ENCOURAGED TO READ THE PROXY STATEMENT AND ACCOMPANYING WHITE PROXY
CARD WITH RESPECT TO THE 2017 ANNUAL MEETING, AND OTHER DOCUMENTS
FILED WITH THE SEC, CAREFULLY AND IN THEIR ENTIRETY AS THEY CONTAIN
IMPORTANT INFORMATION. Shareholders may obtain the Proxy Statement,
any amendments or supplements to the Proxy Statement and other
documents filed by the Company with the SEC for no charge at the
SEC’s website at www.sec.gov. Copies will also be available at no
charge at the Investor Relations section of our corporate website
at www.ctlc.com.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170426005331/en/
Consolidated-Tomoka Land Co.Mark E. Patten, 386-944-5643Sr. Vice
President & Chief Financial OfficerFacsimile:
386-274-1223mpatten@ctlc.com
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