Consolidated-Tomoka Land Co. (NYSE MKT: CTO) (the “Company”) today
announced the disposition of an income property, leased to a subsidiary
of CVS, located in Melbourne, Florida, which is currently subleased to a
health care provider. The property was sold for approximately $3.2
million or $292 per square foot and had approximately 10 years remaining
on the lease. The proceeds from the sale totaled approximately $3.1
million and resulted in an estimated gain of approximately $0.5 million,
after tax. The Company intends to use the proceeds from this sale as
part of a Section 1031 like-kind exchange for the recently-acquired
137,000 square-foot office property located at 245 Riverside in
Jacksonville, Florida.
Since the beginning of 2015, the Company has completed six dispositions
of non-core income properties for total proceeds of approximately $23.5
million, exceeding the $15 million high-end of the Company’s guidance,
which resulted in net aggregate gains of approximately $3.1 million,
after tax.
John P. Albright, President and Chief Executive Officer of the Company
stated, “The sale of this property continues to demonstrate our
consistent strategy of disposing of non-core properties and using the
proceeds to invest in higher quality income-producing properties located
in stronger markets.” Mr. Albright also noted, “This non-core property
was sold at a cap rate more favorable than the low-end of our
disposition guidance of 7.50%.”
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 1.7
million square feet of income properties, as well as over 10,500 acres
of land in the Daytona Beach area. Visit 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 uncertainties associated with closing land transactions,
including the likelihood, timing, and final transaction terms thereof,
the estimate of the cost of completing infrastructure work affiliated
with certain land transactions and the impact on the total estimated
gain as well as the timing of the recognition of that gain, our ability
to obtain necessary governmental approvals for our land transactions or
to satisfy 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, 2014 and in our Quarterly Report on Form 10-Q
for the quarter ended June 30, 2015, each 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.
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