Consolidated-Tomoka Announces Closing of Three Land Transactions and Other Land Updates
July 02 2018 - 9:20AM
Consolidated-Tomoka Land Co. (NYSE American:CTO) (the “Company”)
today announced the closing of three land sales transactions, the
completion of all conditions necessary to recognize its sale of the
70% interest in the Tiger Bay Mitigation Bank joint venture (the
“Tiger Bay Mitigation Bank”), and identified 257 acres of the
Company’s land holdings that are located in the newly-established
Opportunity Zones created by the Tax Cuts and Jobs Act Bill (the
“Act”) passed in December 2017.
The three land sales (the “Land Sales”) closed
during the month of June 2018 represented the sale of approximately
32.4 acres of land for aggregate proceeds of approximately $1.7
million, or approximately $53,000 an acre.
The Company also announced that the final
conditions associated with its previously-announced sale of a 70%
interest in the Tiger Bay Mitigation Bank have been satisfied, and
as a result, the proceeds from the sale of approximately $15.3
million were released to the Company and the transaction will be
recognized as a sale of the 70% interest in the joint venture as of
June 30, 2018.
The Company used the proceeds from the Land
Sales and the Tiger Bay Mitigation Bank transaction in a 1031
like-kind reverse exchange as part of the previously-announced
acquisition of the single-tenant retail property in Aspen,
Colorado.
After the Land Sales and the recognition of the
sale of the interest in the Tiger Bay Mitigation Bank and including
new land sales contracts entered into during the quarter, the
Company currently has seventeen (17) executed purchase and sale
agreements with fourteen (14) different buyers, which in the
aggregate represent the potential sale of approximately 4,300
acres, or approximately 78% of our remaining land holdings, with
anticipated sales proceeds of more than $178 million, or
approximately $42,000 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.
The Company also announced that approximately
257 acres of its land holdings, of which 164 acres are already
under contract for approximately $23 million, are located in one of
Florida’s newly established Opportunity Zones, which provides
significant tax advantages to developers and businesses who conduct
business within these zones pursuant to the Act. 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 2.1 million square feet of
income properties, as well as nearly 5,500 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 which are 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 are intended to identify certain
of such forward-looking statements, which speak only as of the
dates on which they were made, although not all forward-looking
statements contain such words. 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 availability of investment
properties that meet the Company’s investment goals and criteria,
the modification of terms of certain land sales agreements,
uncertainties associated with obtaining required governmental
permits and satisfying other closing conditions for planned
acquisitions and sales, 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 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. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date of this release.
Contact: |
Mark E. Patten, Sr.
Vice President & Chief Financial Officer mpatten@ctlc.com |
Phone: |
(386) 944-5643 |
Facsimile: |
(386) 274-1223 |
CTO Realty Growth (AMEX:CTO)
Historical Stock Chart
From Aug 2024 to Sep 2024
CTO Realty Growth (AMEX:CTO)
Historical Stock Chart
From Sep 2023 to Sep 2024