Consolidated-Tomoka Announces Closing of $6.7 Million Land Transaction and Other Updates
August 30 2018 - 4:20PM
Consolidated-Tomoka Land Co. (NYSE American: CTO) (the “Company”)
today announced the closing of the sale of approximately 21 acres
of land (the “Williamson Crossing Parcel”) for approximately $6.7
million, or approximately $325,000 an acre, to Unicorp National
Development, Inc., of Orlando, Florida (“Unicorp”). The transaction
included Unicorp’s assumption of an existing contract, with a
different third party, for the sale of approximately 2 acres, which
were included in the 21 acres. The Company estimates the gain on
the sale to Unicorp to total approximately $1.5 million, or $0.20
net of tax. The contract closed today was entered into on August 1,
2018. The Company expects to use the proceeds from this transaction
in the acquisition of a single-tenant income property pursuant to
the 1031 like-kind exchange structure.
Year-to-date, the Company has sold more than
2,580 acres of land for an aggregate of more than $37 million, or
approximately $15,000 per acre. As compared to the Company’s
guidance for 2018, this total equates to nearly 69% of the low end
of the range of $55 million and approximately 54% of the high end
of the range of $70 million.
The Company entered into two additional land
contracts with Unicorp, as described in the following summary:
- A contract to sell approximately
101 acres for approximately $9.5 million, which equates to
approximately $94,000 per acre. The 101-acre parcel is part of the
Company’s approximately 187-acre parcel located north of LPGA
Boulevard and bordered by Williamson Boulevard to the west of the
parcel and Clyde Morris Boulevard to the east of the parcel;
and
- A contract to sell approximately 14
acres for $3.8 million, which equates to approximately $277,000 per
acre. This land parcel is located at the southwest corner of LPGA
Boulevard and Clyde Morris Boulevard.
Since August 1, 2018, the Company has also
entered into two additional land contracts with two other
developers for land located east of Interstate 95, as follows:
- A contract to sell approximately 20
acres located north of LPGA Boulevard (and east of Clyde Morris
Boulevard) for $4.0 million, reflecting a price per acre of
approximately $200,000; and
- A contract to sell approximately 18
acres located on the west side of Clyde Morris Boulevard (south of
LPGA Boulevard) for $570,000, reflecting a price per acre of
approximately $32,000.
The Company also announced that it has been in
discussions with North American Development Group (“NADG”)
regarding NADG’s interest in modifying its contract for the
approximately 35 acres remaining under its contract with the
Company to reduce the amount of acres NADG would purchase. There
can be no assurances on the likelihood that such an amendment will
be completed, the timing of doing so, or the resulting
modifications in financial terms.
In addition, the Company today announced that
the purchase and sale agreement pertaining to 80 acres on the west
side of Williamson Boulevard and north of LPGA Boulevard for
potential proceeds of $16 million was terminated by the buyer. The
Company is in discussions with another third party that is
potentially interested in acquiring the 80-acre parcel.
After the sale of the Williamson Crossing Parcel
and the contracts newly entered into and the terminated contract,
all noted above, the Company currently has nineteen (19) executed
purchase and sale agreements with fifteen (15) different buyers,
which in the aggregate represent the potential sale of nearly 4,400
acres, or approximately 79% of our remaining land holdings, with
anticipated sales proceeds of more than $179 million, or
approximately $41,000 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.
Finally, the Company announced that its $3.0
million mortgage loan on a land parcel in Daytona Beach Shores,
Florida was paid off at maturity in August 2018, resulting in an
unlevered IRR of approximately 14% for this one-year duration
investment.
About Consolidated-Tomoka Land
Co.
Consolidated-Tomoka Land Co. is a Florida-based
publicly traded real estate company, which owns approximately 2.1
million square feet of income properties in diversified markets in
the United States, 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 |
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