Contact:

Mark E. Patten, Sr. Vice President and CFO

mpatten@ctlc.com

Phone:

(386) 944‑5643

Facsimile:

(386) 274‑1223

ANNOUNCES LAND

FOR

IMMEDIATE

RELEASE

CONSOLIDATED-TOMOKA LAND CO. REPORTS THIRD

QUARTER 2017 EARNINGS OF $0.18 PER SHARE AND ANNOUNCES LAND

PIPELINE REACHES $146 MILLION OR 72% OF LAND HOLDINGS

·

Net income was $0.18 per basic share, a decrease of $1.26 per share, or (88%);

·

Operating income was approximately $3.8 million, a decrease of approximately $12.1 million, or (76%); and

·

Revenues from our Operating Segments were as follows:

Increase (Decrease)

Operating Segment

Revenue for

the Quarter

($000’s)

vs Same Period

in 2016

($000’s)

vs Same

Period in 2016

(%)

Income Properties

$

        7,928 

$

               1,907 

32 

%

Interest Income from Commercial Loan Investments

638 

104 

19 

%

Real Estate Operations

2,926 

‑37 

%

Golf Operations

        797 

‑20 

%

Agriculture & Other Income

91 

81 

810 

%

Total Revenues

$

      12,380 

$

      170 

1 

%

·

Net income was $3.13 per basic share, an increase of $1.17 per share, or 60%;

·

Operating income was approximately $34.6 million, an increase of approximately $7.6 million, or 28%; and

·

Revenues from our Operating Segments were as follows:

Increase (Decrease)

Operating Segment

Revenue for

the Nine

Months 

($000’s)

vs Same Period

in 2016 

($000’s)

vs Same

Period in 2016

(%)

Income Properties

$

        22,566 

4,083 

22 

%

Interest Income from Commercial Loan Investments

1,727 

-16 

%

Real Estate Operations

45,658 

26,679 

141 

%

Golf Operations

3,656 

-6 

%

Agriculture & Other Income

324 

276 

575 

%

Total Revenues

$

      73,931 

$

      30,492 

70 

%

Location

Acres

Amount

($000’s)

Price Per Acre

($ Rounded

000’s)

East of I‑95 (surrounding Buc-ee’s location)

123 

$

29,250 

$

238,000 

West of I‑95 (south side of SR 40)

1,016 

$

21,000 

$

21,000 

East of I‑95 (across from Florida Hospital)

45 

$

5,200 

$

116,000 

West of I‑95 (Mitigation Bank) –Term Sheet (1)

2,492 

$

15,000 

$

6,000 

Totals (Average)

3,676 

$

70,450 

$

19,000 

⁽¹⁾

The amount for the Mitigation Bank represents the amount in the term sheet for the buyer’s acquisition of approximately 70% of the joint venture that owns the Mitigation Bank, with the Company retaining 30%.

Transaction (Buyer)

Acres

Amount

($000’s)

Price Per Acre

($ Rounded

000’s)

Estimated

Timing

Commercial/Retail – East of I‑95 (2)

123 

$

29,250 

$

238,000 

‘18 – ‘19

Residential (AR) – Minto II – West of I‑95

1,614 

$

26,500 

$

16,000 

‘18

Residential (SF) – ICI Homes II – West of I‑95

1,016 

$

21,000 

$

21,000 

‘19

Mixed-Use Retail – North American – East of I‑95

62 

$

16,963 

$

273,000 

‘17 – ‘18

Mitigation Bank– Term Sheet (1)  – West of I‑95

2,492 

$

15,000 

$

6,000 

‘18

Commercial/Retail – Buc’ees – East of I‑95 (2)

35 

$

14,000 

$

400,000 

‘18

Commercial/Retail – East of I‑95

21 

$

5,777 

$

275,000 

‘17 – ‘18

Distribution/Warehouse – East of I‑95

71 

$

5,000 

$

70,000 

‘18 – ‘19

Residential (Multi-Family) – East of I‑95 (3)

45 

$

5,200 

$

116,000 

‘18 – ‘19

Residential (SF) – West of I‑95 (4)

200 

$

3,324 

$

17,000 

‘18

Commercial/Retail – Specialty Grocer – East of I‑95

9 

$

2,700 

$

300,000 

‘18

Residential (SF) – ICI Homes – West of I‑95

146 

$

1,400 

$

10,000 

‘19

Totals (Average)

5,834 

$

146,114 

$

25,000 

⁽¹⁾

The amount for the Mitigation Bank represents the amount in the term sheet for the buyer’s acquisition of approximately 70% of the joint venture that owns the Mitigation Bank, with the Company retaining 30%.

⁽²⁾

Land sales transactions which require the Company to incur the cost to provide the requisite mitigation credits necessary for obtaining the applicable regulatory permits for the buyer, with such costs representing either our basis in credits that we own or potentially up to 5% - 10% of the contract amount noted.

⁽³⁾

The acres and amount include the buyer’s option to acquire 19 acres for approximately $2.0 million, in addition to the base contract of 26 acres for approximately $3.2 million.

⁽⁴⁾

The acres and amount include the buyer’s option to acquire 71 acres for approximately $574,000, in addition to the base contract of 129 acres for approximately $2.75 million.

’s)

’s)

Increase (Decrease)

Income Property Operations Segment

Revenue for

the Quarter

($000’s)

vs Same Period

in 2016

($000’s)

Q4 2016 & YTD 2017 Acquisitions

$

1,659 

$

1,659 

Revenue from The Grove at Winter Park

147 

123 

Revenue from Remaining Portfolio

5,570 

132 

Accretion of Above Market/Below Market Intangibles

552 

Total Related to Income Property Operations

$

7,928 

$

1,907 

Increase (Decrease)

Real Estate Operations Segment

Revenue for

the Quarter

($000’s)

vs Same Period

in 2016

($000’s)

Land Sales Revenue

$

- 

$

           (318)

Percentage of Completion Revenue (Tomoka Town Center)

- 

Impact Fees/Mitigation Credit Sales

548 

339 

Subsurface Revenue

2,374 

1,911 

Other

4 

4 

Total Related to Real Estate Operations

$

2,926 

$

      (1,718)

Increase (Decrease)

Real Estate Operations Segment

Revenue for

the Nine Months

($000’s)

vs Same Period

in 2016

($000’s)

Land Sales Revenue

$

      39,564 

$

           39,056 

Revenue from Reimbursement of Infrastructure Costs

1,276 

1,276 

Impact Fees/Mitigation Credit Sales

1,987 

1,506 

Percentage of Completion Revenue (Tomoka Town Center)

- 

(16,455)

Subsurface Revenue

2,827 

1,292 

Other

4 

4 

Total Related to Real Estate Operations

$

      45,658 

$

      26,679 

Increase (Decrease)

Income Property Operations Segment

Revenue for

the Nine Months

($000’s)

vs Same Period

in 2016

($000’s)

Q4 2016 & YTD 2017 Acquisitions

$

                3,989 

$

           3,989 

Revenue from the Grove at Winter Park

                       284 

                  206 

Accretion of Above Market/Below Market Intangibles

                   1,633 

                  (89)

Revenue from Remaining Portfolio

                 16,660 

                (23)

Total Related to Income Property Operations

$

              22,566 

$

           4,083 

Increase (Decrease)

For the

Quarter

Ended

September 30,

2017

vs Same Period in

2016

vs Same

Period in 2016

(%)

Net Income ($000’s)

$

967 

$

%

Basic Net Income Per Share

$

0.18 

$

%

·

A decrease in direct cost of revenues of nearly  $0.6 million primarily related to the decrease in the direct cost of revenues for the Real Estate Operations of approximately $0.8 million, which primarily reflects that we did not close any land transactions during the third quarter of 2017, and an increase of approximately $0.3 million in the operating costs of the Income Property Operations segment;

·

An increase in depreciation and amortization of approximately $1.2 million resulting from the growth in our income property portfolio; and

·

The gain of approximately $11.5 million recognized in the third quarter of 2016 in connection with the Company’s  disposition of a portfolio of 14 single-tenant income properties.

Increase (Decrease)

For the

Nine Months

Ended

September 30,

2017 (1)

vs Same Period

in 2016 

vs Same

Period in 2016

(%)

Net Income ($000’s)

$

17,392 

$

6,236 

56 

%

Basic Net Income Per Share

$

3.13 

$

1.17 

60 

%

⁽¹⁾

Includes $0.24 in non-cash earnings for the elimination of the accrued liability associated with the straight-line accounting for the land lease which was terminated as part of the acquisition of the LPGA International golf course land. This earnings impact was not included in the Company’s  original 2017 guidance for earnings per share.

·

An increase in direct cost of revenues of approximately $11.7 million primarily related to the increase in the direct cost of revenues for the Real Estate Operations of approximately $10.8 million, which reflects an increase of approximately $8.7 million in cost basis related to the increased land sales during the nine-month period and associated transaction costs of approximately $1.3 million;

·

An increase in depreciation and amortization of approximately $3.3 million resulting from the growth in our income property portfolio;

·

Non-cash earnings of approximately $2.2 million related to the transaction to acquire the land underlying our golf operations;  and

·

Income of approximately $12.8 million recognized in 2016 in connection with the Company’s disposition of a portfolio of 14 income properties and other dispositions of income properties offset by the recognition of approximately $2.2 million in impairment charges during the nine months ended September 30, 2016.

Updated

Guidance

YTD 2017

YTD 2017

Actual

Reported Earnings Per Share (Basic)

$

2.95 - $3.10(1)

$

3.13(1)

Acquisition of Income-Producing Assets

$

50mm - $70mm

$

40.0 

Target Investment Yields (Initial Yield – Unlevered)

6% -  8

%  

6.65 

%

Land Transactions (Sales Value)

$

30mm - $50mm

$

39.8mm

Leverage Target (as % of Total Enterprise Value)

<40

%  

32.5 

%

⁽¹⁾

Includes $0.24 in non-cash earnings for the elimination of the accrued liability associated with the straight-line accounting for the land lease which was terminated as part of the acquisition of the LPGA International golf course land. This earnings impact was not included in the Company’s original 2017 guidance for earnings per share.

Teleconference: USA (Toll Free)

1‑888‑317‑6003

International:

1‑412‑317‑6061

Canada (Toll Free):

1‑866‑284‑3684

(Unaudited)

September 30,
2017

December 31,
 2016

ASSETS

Property, Plant, and Equipment:

Income Properties, Land, Buildings, and Improvements

$

317,215,503 

$

274,334,139 

Golf Buildings, Improvements, and Equipment

6,355,561 

3,528,194 

Other Furnishings and Equipment

652,479 

1,032,911 

Construction in Progress

6,246,950 

5,267,676 

Total Property, Plant, and Equipment

330,470,493 

284,162,920 

Less, Accumulated Depreciation and Amortization

Property, Plant, and Equipment—Net

308,917,610 

267,610,843 

Land and Development Costs

40,750,335 

51,955,278 

Intangible Lease Assets—Net

35,810,734 

34,725,822 

Impact Fee and Mitigation Credits

1,265,437 

2,322,906 

Commercial Loan Investments

11,910,611 

23,960,467 

15,000,000 

— 

Cash and Cash Equivalents

5,944,544 

7,779,562 

Restricted Cash

7,027,196 

9,855,469 

Refundable Income Taxes

1,510,712 

943,991 

Other Assets

8,573,622 

9,469,088 

Total Assets

$

436,710,801 

$

408,623,426 

LIABILITIES AND SHAREHOLDERS’ EQUITY

Liabilities:

Accounts Payable

$

1,307,813 

$

1,518,105 

Accrued and Other Liabilities

7,382,898 

8,667,897 

Deferred Revenue

1,313,025 

1,991,666 

Intangible Lease Liabilities - Net

30,026,994 

30,518,051 

Accrued Stock-Based Compensation

69,877 

42,092 

Deferred Income Taxes—Net

63,458,746 

51,364,572 

Long-Term Debt

173,651,530 

166,245,201 

Total Liabilities

277,210,883 

260,347,584 

Commitments and Contingencies

Shareholders’ Equity:

Common Stock – 25,000,000 shares authorized; $1 par value, 6,026,610 shares issued and 5,581,235 shares outstanding at September 30, 2017; 6,021,564 shares issued and 5,710,238 shares outstanding at December 31, 2016

5,951,720 

5,914,560 

Treasury Stock – 445,375 shares at September 30, 2017; 311,326 shares at December 31, 2016

Additional Paid-In Capital

22,168,687 

20,511,388 

Retained Earnings

153,562,478 

136,892,311 

Accumulated Other Comprehensive Income

251,833 

255,889 

Total Shareholders’ Equity

159,499,918 

148,275,842 

Total Liabilities and Shareholders’ Equity

$

436,710,801 

$

408,623,426 

Three Months Ended

Nine Months Ended

September 30,

September 30,

September 30,

September 30,

2017

2016

2017

2016

Revenues

Income Properties

$

7,928,258 

$

6,021,331 

$

22,566,505 

$

18,483,654 

Interest Income from Commercial Loan Investments

637,801 

534,212 

1,727,449 

2,050,507 

Real Estate Operations

2,926,406 

4,643,646 

45,658,221 

18,979,164 

Golf Operations

797,420 

1,001,368 

3,655,877 

3,877,923 

Agriculture and Other Income

90,717 

10,388 

323,617 

48,070 

Total Revenues

12,380,602 

12,210,945 

73,931,669 

43,439,318 

Direct Cost of Revenues

Income Properties

Real Estate Operations

Golf Operations

Agriculture and Other Income

Total Direct Cost of Revenues

General and Administrative Expenses

Impairment Charges

—

—

—

Depreciation and Amortization

Gain (Loss) on Disposition of Assets

11,479,490 

12,842,438 

 Land Lease Termination

—

—

2,226,526 

—

Total Operating Expenses

3,668,564 

Operating Income

3,757,449 

15,879,509 

34,647,267 

27,005,693 

Investment Income (Loss)

9,724 

2,531 

27,431 

Interest Expense

Income Before Income Tax Expense

1,693,874 

13,427,650 

28,395,332 

19,743,938 

Income Tax Expense

Net Income

966,900 

8,146,004 

17,392,200 

11,119,211 

Less: Net Loss Attributable to Noncontrolling

  Interest in Consolidated VIE

—

15,010 

—

36,964 

Net Income Attributable to Consolidated-Tomoka

  Land Co.

$

      966,900 

$

    8,161,014 

$

 17,392,200 

$

   11,156,175 

Per Share Information:

Basic

Net Income Attributable to Consolidated-Tomoka Land Co.

$

         0.18 

$

           1.44 

$

     3.13 

$

            1.96 

Diluted

Net Income Attributable to Consolidated-Tomoka Land Co.

$

    0.18 

$

    1.44 

$

          3.13 

$

    1.95 

Dividends Declared and Paid

$

    0.05 

$

       0.04 

$

    0.13 

$

            0.08