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DAYTONA BEACH, FL—Locally-based Consolidated-Tomoka Land Co. is planning an initial public offering of a single-tenant net lease REIT to be called Alpine Income Property Trust, or PINE. CTO will seed the new REIT with a portfolio of 20 of its single-tenant net lease income properties.

PINE intends to raise the necessary capital in its IPO to acquire 15 of these assets for $125.9 million in cash. CTO will contribute the remaining five assets in exchange for 1.2 million units in PINE's operating partnership, which are expected to be valued at $24.5 million based on a preliminary estimate of the mid-point of the public offering price range of the PINE IPO. In addition, CTO intends to invest $7.5 million in the common stock of PINE through a private placement at the same time as the IPO.

When all is said and done, CTO's ownership of PINE is expected to total 17.5%. Alpine will apply to list its common stock on the New York Stock Exchange under the ticker symbol "PINE" following its IPO.

Alpine also intends to enter into a management agreement with CTO, as well as an exclusivity and right of first offer agreement in which any proposed acquisition of single tenant net leased properties by CTO must first be offered to Alpine. Also, all of CTO's remaining single tenant net leased properties would be subject to a right of first offer in favor of Alpine should CTO seek to sell those assets at any time while the management agreement is in effect.

CTO's Board of Directors has formed a committee of independent directors to approve these transactions.