OPERATING RESULTS
Operating results for the quarter ended
- Net income was
$2.28 per share, an increase of$2.03 per share, or 812%; - The Company expects to exceed the high end of its guidance for earnings per share in 2017;
- Operating income was approximately
$22.8 million , an increase of approximately$16.5 million , or approximately 257%; and - Revenues from our Operating Segments were as follows:
Increase (Decrease) | ||||||||||||||
Operating Segment |
Revenue for |
vs Same Period in |
vs Same |
|||||||||||
|
$ |
7,073 |
$ |
644 |
10.0 | % | ||||||||
Interest Income from Commercial Loan Investments | 536 | (345 | ) | -39.2 | % | |||||||||
Real Estate Operations | 29,475 | 19,914 | 208.3 | % | ||||||||||
Golf Operations | 1,475 | 11 | 0.8 | % | ||||||||||
Agriculture & Other Income | 154 | 135 | 710.5 | % | ||||||||||
Total Revenues |
$ |
38,713 |
$ |
20,359 |
110.9 | % | ||||||||
CEO and CFO Comments on Operating Results
OTHER HIGHLIGHTS
Other highlights for the quarter ended
- Repurchased 56,243 shares of the Company’s stock for approximately
$2.9 million at an average purchase price of$52.05 per share; - Book value increased by
$1.91 per share to approximately$27.88 per share as ofMarch 31, 2017 , an increase of approximately 7.4% versusDecember 31, 2016 ; and - As of
March 31, 2017 : (i) Total cash was approximately$8.5 million , which includes unrestricted cash and approximately$4.1 million of 1031 restricted cash (“Available Cash”); (ii) Total debt (including the convertible note at face value) to total enterprise value (total debt plus equity market capitalization), net of Available Cash, was approximately 32.9%; and (iii) available borrowing capacity on our credit facility totaled approximately$50.5 million , subject to borrowing base requirements.
Income Property Portfolio Update
The Company’s income property portfolio consisted of the following as of
Property Type | # of Properties |
Annualized |
Avg. Years |
|||||||
Single-Tenant | 22 | $ | 13,500 | 9.1 | ||||||
Multi-Tenant | 11 | 9,900 | 5.2 | |||||||
Total / Wtd. Avg. | 33 | $ | 23,400 | 7.6 | ||||||
In the first quarter of 2017 the Company acquired two income properties for an aggregate purchase price of approximately
Subsequent to Quarter End
On
Loan Investment Update
Portfolio Summary
As of
Land Update
Land Sales
In the first quarter of 2017, the Company sold approximately 1,587 acres of land in two separate transactions with two different buyers generating aggregate sales proceeds of approximately
- The sale of approximately 1,581 acres, on the west side of
Interstate 95 toMinto Communities (for the development of the 3,400-unit age-restricted Latitude Margaritaville community), for approximately$27.2 million , or approximately$17,000 per acre, resulting in an estimated gain of approximately$20.0 million , or$2.20 per share after tax; and - The sale of approximately 6 acres, on the east side of
Interstate 95 at Clyde Morris and LPGA boulevards, for approximately$1.6 million , or approximately$245,000 per acre.
Subsequent to Quarter End
On
On
Land Pipeline Update
As of
Contract (or Buyer)/Parcel | Acres |
Contract |
Price Per Acre |
Estimated |
|||||||
1 | Minto II (AR Residential) | 1,686 | |
|
’18 – ‘19 | ||||||
2 | ICI (SF) – Option Parcel | 146 | |
|
’18 – ‘19 | ||||||
3 | Residential | 194 | |
|
’18 – ‘19 | ||||||
4 | Mixed-Use Retail (NADG) | 82 | |
|
’17 – ‘18 | ||||||
5 | Commercial/Retail – Buc’ees | 35 | |
|
’17 – ‘19 | ||||||
6 | Commercial/Retail | 22 | |
|
’17 – ‘18 | ||||||
7 | Commercial/Retail | 30 | |
|
’17 | ||||||
8 | Commercial/Retail | 9 | |
|
’18 – ‘19 | ||||||
Totals (Average) | 2,204 | |
|
||||||||
As noted above, these agreements contemplate closing dates ranging from the second quarter of 2017 through fiscal year 2019, and the Company expects some of the transactions to close in 2017, although some of the buyers are not contractually obligated to close until after 2017. 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
Beachfront Venture
In the first quarter of 2017, the Company executed a 15-year lease agreement with the operator of
Financial Results
Revenue
Total revenue for the quarter ended
Increase (Decrease) | ||||||||
Real Estate Operations Segment |
Revenue for |
vs Same Period in |
||||||
Land Sales Revenue | $ | 28,707 | $ | 28,517 | ||||
Revenue from Reimbursement of Infrastructure Costs | 320 | 320 | ||||||
Impact |
217 | 112 | ||||||
Percentage of Completion Revenue ( |
– | (8,958) | ||||||
Subsurface Revenue | 230 | (78) | ||||||
Total Related to Real Estate Operations | $ | 29,474 | $ | 19,913 | ||||
Increase (Decrease) | |||||||||
Income Property Operations Segment |
Revenue for |
vs Same Period in |
|||||||
Q4 2016 & Q1 2017 Acquisitions | $ | 995 | $ | 995 | |||||
Accretion of Above Market/Below Market Intangibles | 531 | (76 | ) | ||||||
Rent from Remaining Portfolio (Impact of 2016 Dispositions) | 5,547 | (275 | ) | ||||||
Total Related to Income Property Operations | $ | 7,073 | $ | 644 | |||||
Net Income
Net income for the quarter ended
The results in the first quarter of 2017 reflected increased revenues of approximately
- A decrease in general and administrative expenses of approximately
$1.6 million primarily due to the following:- A decrease in non-cash stock compensation expense of approximately
$1.7 million which, in part, is due to the accelerated stock compensation expense of approximately$1.6 million recognized in the first quarter of 2016 relating to certain stock awards that were forfeited; - Reduced legal and other costs of approximately
$87,000 which stem from what were anticipated to be non-recurring expenses incurred in the first quarter of 2016 of approximately$1.0 million relating to the investigation of certain claims made by Wintergreen Advisers in a series of public and private letters that were determined to be without merit, offset by an aggregate of approximately$936,000 in costs incurred during the first quarter of 2017 associated with Wintergreen Advisers communications which included approximately$563,000 specifically related to the Company’s proxy contest for the 2017 Annual Meeting of Shareholders;
- A decrease in non-cash stock compensation expense of approximately
- An increase in depreciation and amortization of approximately
$695,000 resulting from the growth in our income property portfolio; - Income of approximately
$2.2 million recognized in connection with the Company’s purchase of the leased fee interest in the 690-acre golf course which terminated the land lease affiliated with the golf operations and triggered an elimination of the previously recognized straight-line rent under the lease - A decrease in investment loss primarily due to the loss of approximately
$576,000 that was recognized in the first quarter of 2016 related to the disposition of certain investment securities; and - The recognition of approximately
$210,000 in impairment charges in the first quarter of 2016.
Review of 2017 Guidance
The following summary provides a review of the Company’s guidance for the year ending
FY 2017 Guidance | 2017 Actual | |||||||
Reported Earnings Per Share (Basic) | |
|
||||||
Acquisition of Income-Producing Assets | $50mm – $70mm | |
||||||
Target Investment Yields (Initial Yield – Unlevered) | 6% – 8% | 6.63% | ||||||
Land Transactions (Sales Value) | $30mm – $50mm | |
||||||
Leverage Target (as % of Total Enterprise Value) | <40% | 32.9% | ||||||
(1) Includes
First Quarter 2017 Earnings Conference Call & Webcast
The Company will host a conference call to present its operating results for the first quarter ended
Teleconference: | |
|||
International: | 1-412-317-6061 | |||
|
1-866-284-3684 |
Please dial in at least five minutes prior to the scheduled start time and use the code 1383327 when prompted.
A webcast of the call can be accessed at: http://services.choruscall.com/links/cto170418.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.
A replay of the Earnings Call will be archived and available online through the Investor Relations section of http://www.ctlc.com.
About
We encourage you to review our most recent investor presentations for year end 2016 pertaining to the results for the quarter and year ended
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 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, as well as the uncertainties and risk factors discussed in our Annual Report on Form 10-K for the fiscal year ended
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
CONSOLIDATED BALANCE SHEETS |
||||||||
(Unaudited) | ||||||||
|
|
|||||||
ASSETS | ||||||||
Property, Plant, and Equipment: | ||||||||
|
$ | 297,105,291 | $ | 274,334,139 | ||||
Golf Buildings, Improvements, and Equipment | 5,835,936 | 3,528,194 | ||||||
Other Furnishings and Equipment | 1,044,994 | 1,032,911 | ||||||
Construction in Progress | 3,077,653 | 5,267,676 | ||||||
Total Property, Plant, and Equipment | 307,063,874 | 284,162,920 | ||||||
Less, Accumulated Depreciation and Amortization | (18,225,958 | ) | (16,552,077 | ) | ||||
Property, Plant, and Equipment—Net | 288,837,916 | 267,610,843 | ||||||
Land and Development Costs | 44,443,943 | 51,955,278 | ||||||
Intangible Lease Assets—Net | 35,642,983 | 34,725,822 | ||||||
Impact Fee and Mitigation Credits | 2,106,314 | 2,322,906 | ||||||
Commercial Loan Investments | 23,960,467 | 23,960,467 | ||||||
Cash and Cash Equivalents | 4,427,864 | 7,779,562 | ||||||
Restricted Cash | 5,882,767 | 9,855,469 | ||||||
Refundable Income Taxes | 1,041,938 | 943,991 | ||||||
Other Assets | 8,596,868 | 9,469,088 | ||||||
Total Assets | $ | 414,941,060 | $ | 408,623,426 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Accounts Payable | $ | 1,989,680 | $ | 1,518,105 | ||||
Accrued and Other Liabilities | 5,480,252 | 8,667,897 | ||||||
Deferred Revenue | 1,599,142 | 1,991,666 | ||||||
Intangible Lease Liabilities – Net | 30,635,958 | 30,518,051 | ||||||
Accrued Stock-Based Compensation | 28,062 | 42,092 | ||||||
Deferred Income Taxes—Net | 60,351,549 | 51,364,572 | ||||||
Long-Term Debt | 156,813,310 | 166,245,201 | ||||||
Total Liabilities | 256,897,953 | 260,347,584 | ||||||
Commitments and Contingencies | ||||||||
Shareholders’ Equity: | ||||||||
Common Stock – 25,000,000 shares authorized; |
5,928,232 | 5,914,560 | ||||||
Treasury Stock – 367,569 shares at |
(18,225,862 | ) | (15,298,306 | ) | ||||
|
20,623,683 | 20,511,388 | ||||||
Retained Earnings | 149,414,109 | 136,892,311 | ||||||
Accumulated Other Comprehensive Income (Loss) | 302,945 | 255,889 | ||||||
Total Shareholders’ Equity | 158,043,107 | 148,275,842 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 414,941,060 | $ | 408,623,426 | ||||
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
||||||||
Three Months Ended | ||||||||
|
|
|||||||
2017 | 2016 | |||||||
Revenues | ||||||||
|
$ | 7,073,240 | $ | 6,429,241 | ||||
Interest Income from Commercial Loan Investments | 536,489 | 881,245 | ||||||
Real Estate Operations | 29,474,460 | 9,560,898 | ||||||
Golf Operations | 1,474,944 | 1,464,359 | ||||||
Agriculture and Other Income | 154,151 | 18,692 | ||||||
Total Revenues | 38,713,284 | 18,354,435 | ||||||
Direct Cost of Revenues | ||||||||
|
(1,411,713 | ) | (1,176,707 | ) | ||||
Real Estate Operations | (9,156,849 | ) | (2,257,041 | ) | ||||
Golf Operations | (1,498,678 | ) | (1,404,588 | ) | ||||
Agriculture and Other Income | (40,437 | ) | (48,051 | ) | ||||
Total Direct Cost of Revenues | (12,107,677 | ) | (4,886,387 | ) | ||||
General and Administrative Expenses | (3,220,147 | ) | (4,797,457 | ) | ||||
Impairment Charges | — | (209,908 | ) | |||||
Depreciation and Amortization | (2,762,575 | ) | (2,067,367 | ) | ||||
Land Lease Termination | 2,226,526 | — | ||||||
Total Operating Expenses | (15,863,873 | ) | (11,961,119 | ) | ||||
Operating Income | 22,849,411 | 6,393,316 | ||||||
Investment Income (Loss) | 9,183 | (566,384 | ) | |||||
Interest Expense | (2,061,891 | ) | (2,091,766 | ) | ||||
Income Before Income Tax Expense | 20,796,703 | 3,735,166 | ||||||
Income Tax Expense | (8,050,311 | ) | (2,342,601 | ) | ||||
Net Income | 12,746,392 | 1,392,565 | ||||||
Less: Net Loss Attributable to Noncontrolling Interest in Consolidated VIE | — | 32,153 | ||||||
Net Income Attributable to |
$ | 12,746,392 | $ | 1,424,718 | ||||
Per Share Information: | ||||||||
Basic | ||||||||
Net Income Attributable to |
$ | 2.28 | $ | 0.25 | ||||
Diluted | ||||||||
Net Income Attributable to |
$ | 2.27 | $ | 0.25 | ||||
Dividends Declared and Paid | $ | 0.04 | $ | – | ||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170417005879/en/
Sr. Vice President and CFO
mpatten@ctlc.com
Source:
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