CONSOLIDATED-TOMOKA LAND CO.

CONSOLIDATED-TOMOKA LAND CO.

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Company Overview
Consolidated-Tomoka Land Co. is a US-based company engaged in the construction of single-family houses and other buildings for sale. The company, through its subsidiaries, is also active in income properties and golf operations. It is headquartered in Daytona Beach, a city in Volusia County, Florida.
The company has a rich history dating back to 1902 in Jacksonville. It began as Consolidated Naval Stores Company, a timber-based company, specializing in harvesting gum converted into turpentine pitch and rosin from long leaf yellow pine for the maintenance of wooden ships.
Consolidated-Tomoka owns more than 11,000 acres of property in the Daytona Beach, Florida area. The company maintains a wide selection of developable sites for all categories of future real estate end products.
Consolidated-Tomoka’s business strategy is to increase long-term shareholder value by maximizing the appreciation in value of the company’s land holdings, accelerating the rate of annual sales, and converting the sales proceeds into a stable long-term income stream by acquiring quality income properties.
Business Summary
Consolidated-Tomoka Land Co. is primarily engaged in real estate, income properties and golf operations (collectively, The Real Estate Business) through its wholly owned subsidiaries, Indigo Group Inc., Indigo Development Inc., Indigo International LLC., Indigo Group Ltd., Indigo Commercial Realty Inc., W. Hay Inc., W. Hay LLC and Palms Del Mar Inc. Real estate operations include land sales and development, agricultural operations, and leasing properties for oil and mineral exploration. Income properties primarily consist of owning properties leased on a triple-net and double-net basis. Golf operations consist of the operation of two golf courses, a clubhouse facility, and food and beverage activities. These operations are predominantly located in Volusia County, Florida, with various income properties located in Florida, Georgia and North Carolina.
Description and history
Consolidated-Tomoka Land Co. is primarily engaged in real estate, income properties and golf operations (collectively, The Real Estate Business) through its wholly owned subsidiaries, Indigo Group Inc., Indigo Development Inc., Indigo International LLC., Indigo Group Ltd., Indigo Commercial Realty Inc., W. Hay Inc., W. Hay LLC and Palms Del Mar Inc. Real estate operations include land sales and development, agricultural operations, and leasing properties for oil and mineral exploration. Income properties primarily consist of owning properties leased on a triple-net and double-net basis. Golf operations consist of the operation of two golf courses, a clubhouse facility, and food and beverage activities. These operations are predominantly located in Volusia County, Florida, with various income properties located in Florida, Georgia and North Carolina.

Real Estate Operations

In 1993, the Company received Development of Regional Impact (DRI) approval on a 4,500-acre tract of land located both east and west of Interstate 95 in Daytona Beach, Florida. The tract of land includes approximately 3,000 acres west of Interstate 95 in a mixed-used development known as LPGA International. The LPGA International development includes the headquarters of the Ladies Professional Golf Association, along with two championship golf courses, clubhouse facilities and residential communities. In addition to these uses, the DRI also provides for resort facilities and other commercial uses. The Company owns approximately 1,320 acres of land within the DRI, primarily located east of Interstate 95.

Development of a 12-acre, four-lot commercial complex located at the north east corner of LPGA and Williamson Boulevards. Site work, building plans, and permitting have been completed. This parcel will include a 22,000 square-foot Class A office building under development by the Company. Development of the Gateway Commerce Park is a 250-acre industrial, warehouse and distribution park located south of Gateway Business Center on the east side of Interstate 95 in Daytona Beach. The first sale within the development closed in February 2004, with construction of a 60,000-square-foot manufacturing and distribution facility by a third party completed during the year ended December 31, 2004. Through December 2009, seven sales totaling approximately 70 acres have closed within the Gateway Commerce Park with buildings approximating 350,000 square feet constructed including 32,000 square feet, which was completed during 2009. The constructed buildings include a two building 31,000 square-foot flex office space complex which was self-developed by the Company to be held in its portfolio of income properties.

Indigo Commercial Realty Inc., a commercial real estate brokerage company, is the Company’s agent in the management of developed and undeveloped acreage. Approximately 24 acres of fully developed sites located in the Daytona Beach area and owned by Indigo Group Inc. were available for sale at December 31, 2009.

Income Properties

As of December 31, 2009, the Company acquired 26 income properties. With the exception of the Dick’s Sporting Goods and Best Buy properties acquired during the year ended December 31, 2006, and two self-developed properties, all properties are leased on a long-term, double or triple-net lease basis. During 2004, CVS Corp. (CVS) completed the acquisition of a portion of the Eckerd pharmacy chain, including all of the Florida stores. As part of the integration of the Eckerd chain into its system, some of the acquired stores were closed. Four stores owned by the Company were closed by CVS. The tenant is obligated on the leases and continues to make lease payments. Two of the four closed stores have been subleased.

Golf Operations

On September 1, 1997, responsibility for the operations of the LPGA International golf courses was transferred from the City of Daytona Beach to a wholly owned subsidiary of the Company. The agreement with the City of Daytona Beach provided for a second golf course and a clubhouse to be constructed by the Company in return for a long-term lease from the City on both golf courses.

The second golf course was constructed by the Company and opened for play in October 1998. The first phase of the clubhouse, which consisted primarily of the cart barn, was completed in 1999. Construction of the final phase of the clubhouse, consisting of a 17,000-square-foot facility, including a pro shop, locker rooms, formal dining and banquet rooms and a swimming pool, was completed in December 2000, and opened for business in January 2001.

Began as Consolidated Naval Stores Company

Business Line
Engaged in the construction of single-family houses and other buildings for sale
Subsidiary
INDIGO COMMERCIAL REALTY INC
Advisor
KPMG LLP
IPO date
9/8/1992
US SIC Code
1542
Company Address
1530, Cornerstone Boulevard

City province or state postal code
32117, DAYTONA BEACH, FL
Phone: +1 386 274 2202
Fax: +1 386 274 1223
Country address: UNITED STATES OF AMERICA
Website url: www.consolidatedtomoka.com