Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Q2 2023 Earnings Presentation
36 slides from Cto Realty Growth's earnings presentation, Jul 27, 2023
Slide 1: Investor Presentation July 2023
Investor Presentation REALTY GROWTH July 2023 The Collection at Forsyth Cumming, GA
Slide 2: CTO Realty Growth Company Profile
© CTO Realty Growth, Inc. | ctoreit.com CTO Realty Growth Company Profile 2 As of June 30, 2023, unless otherwise noted. 1. As of July 21, 2023. 2. Based on $17.71 per share common stock price as of July 21, 2023. The Collection at Forsyth Cumming, GA 24 4.2M 8.0% PROPERTIES SQUARE FEET IMPLIED CAP
Slide 3: CTO Realty Growth Overview
© CTO Realty Growth, Inc. | ctoreit.com CTO Realty Growth Overview 3 Differentiated Investment Strategy Focusing on Asset Recycling and Value-Add Acquisitions Southeast and Southwest Retail & Mixed-Use Multi-tenant portfolio in attractive business-friendly markets with strong demographics and outsiz
Slide 4: CTO Realty Growth Key Takeaways
© CTO Realty Growth, Inc. | ctoreit.com CTO Realty Growth Key Takeaways 4 Absolute and Relative Valuation Upside CTO currently trades at a meaningful discount to net asset value (NAV) and a relative discount to its retail-focused peer group, as CTO is faster growing with a comparable 2023E FFO multi
Slide 5: Peer Comparisons
© CTO Realty Growth, Inc. | ctoreit.com Peer Comparisons 15.9x 14.5x 13.4x 12.7x 12.5x 11.8x 11.6x 11.5x 11.1x 10.2x 9.7x 4.2% 3.8% 4.4% 4.6% 3.6% 4.1% 8.6% 4.5% 5.1% 4.8% 6.0% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 7.0x 8.0x 9.0x 10.0x 11.0x 12.0x 13.0x 14.0x 15.0x 16.0x FRT UE KIM AKR SITC KRG
Slide 6: Differentiated Investment Strategy
© CTO Realty Growth, Inc. | ctoreit.com Differentiated Investment Strategy 6 CTO has a retail-oriented real estate strategy that focuses on owning, operating and investing in high-quality properties through direct investment and management structures Multi-Tenant Asset Strategy ▪ Focused on retail-b
Slide 7: Real Estate and Investment Focus
© CTO Realty Growth, Inc. | ctoreit.com Real Estate and Investment Focus CTO’s investment strategy is focused on generating relative outsized returns for our shareholders by acquiring and owning well-located properties in markets and states that are business and tax friendly, where the long-term cas
Slide 8: Growth into a Leading Multi-Tenant, Retail-Focused Portfolio
© CTO Realty Growth, Inc. | ctoreit.com Growth into a Leading Multi-Tenant, Retail-Focused Portfolio 8 20191 Number of Properties 34 27 22 23 24 Total Portfolio Square Feet 1.8M 2.5M 2.7M 3.7M 4.2M Occupancy 95% 93% 89% 90% 91% Annualized Cash Base Rent (Cash ABR) $27.6M $38.2M $49.6M $72.6M $81.3M
Slide 9: Durable Portfolio with Meaningful Growth Opportunities
© CTO Realty Growth, Inc. | ctoreit.com Durable Portfolio with Meaningful Growth Opportunities Recently constructed retail and mixed-use portfolio with a combination of value-add lease up, redevelopment and stable, in-place cash flows in some of the strongest markets in the United States. 9 Repositi
Slide 10: Strong Demographic-Driven Portfolio
© CTO Realty Growth, Inc. | ctoreit.com Strong Demographic-Driven Portfolio 10 Percentages listed based on Annualized Cash Base Rent for the Company’s portfolio as of June 30, 2023. Differences are a result of rounding. 1. Source: Esri; Portfolio average weighted by the Annualized Cash Base Rent of
Slide 11: Repositioning – Ashford Lane, Atlanta
© CTO Realty Growth, Inc. | ctoreit.com Repositioning – Ashford Lane, Atlanta 11 Ashford Lane has been repositioned as the premier lifestyle, shopping and dining center within the infill Perimeter submarket of Atlanta ▪ Opportunity to deliver increased rental rates with higher-end tenants supported
Slide 12: Repositioning – Ashford Lane (Atlanta)
© CTO Realty Growth, Inc. | ctoreit.com Repositioning – Ashford Lane (Atlanta) 12 Ashford Lane and its new vibrant, street-level greenspace called The Lawn incorporates outdoor seating, eating areas, and more than a dozen new dining, service and shopping options to drive a community-focused experien
Slide 13: Recent Acquisition – Plaza at Rockwall (Dallas-Fort Worth)
© CTO Realty Growth, Inc. | ctoreit.com Recent Acquisition – Plaza at Rockwall (Dallas-Fort Worth) 13 Recently acquired 446,500 square foot multi-tenant, retail power center with strong in-place cash yield and future cash flow growth through re-leasing and repositioning opportunities ▪ Attractive go
Slide 14: Recent Acquisition – Exchange at Gwinnett (Atlanta)
© CTO Realty Growth, Inc. | ctoreit.com Recent Acquisition – Exchange at Gwinnett (Atlanta) 14 Newly built, multi-phase 93,350 square foot grocery-anchored property within a larger 106-acre mixed-use development; acquired direct from the developer ▪ Grocery-anchored property within the first walkabl
Slide 15: Recent Acquisition – The Collection at Forsyth (Atlanta)
© CTO Realty Growth, Inc. | ctoreit.com Recent Acquisition – The Collection at Forsyth (Atlanta) 15 560,000 square foot lifestyle property with significant repositioning upside in one of the fastest growing submarkets of Atlanta; acquired in December 2022 ▪ Built in 2006 on 59 acres, the property se
Slide 16: Recent Acquisition – West Broad Village (Richmond)
© CTO Realty Growth, Inc. | ctoreit.com Recent Acquisition – West Broad Village (Richmond) 16 392,000 square foot grocery- anchored, mixed-use lifestyle center with attractive long-term upside from value-add leasing acquired in October 2022 ▪ Region’s premier mixed-use destination property anchored
Slide 17: Meaningful Property Cash Flow & Leasing Momentum
© CTO Realty Growth, Inc. | ctoreit.com Meaningful Property Cash Flow & Leasing Momentum 17 1% 9% 8% 16% 12% 21% 8% 5% 4% 16% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 16.0% 17.0% 18.0% 19.0% 20.0% 21.0% 22.0% 23.0% Lease Rollover Schedule % of ABR Expirin
Slide 18: Consistent Dividend Growth
© CTO Realty Growth, Inc. | ctoreit.com Consistent Dividend Growth 18 $0.01 $0.01 $0.02 $0.02 $0.02 $0.03 $0.05 $0.07 $0.12 $0.91 $1.33 $1.49 $1.52 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ▪ 47 consecutive years of paying a common dividend ▪ Under current management (beginnin
Slide 19: Balance Sheet
© CTO Realty Growth, Inc. | ctoreit.com Balance Sheet 19 $51 $83 $100 $310 2023 2024 2025 2026 2027 2028 2029 2030 Unsecured Secured Revolving Credit Facility As of June 30, 2023, unless otherwise noted. $ and shares outstanding in millions. 1. Reflects $209.7 million outstanding under the Company’s
Slide 20: 2023 Guidance
© CTO Realty Growth, Inc. | ctoreit.com 2023 Guidance 20 Low 2023 High 2023 Core FFO Per Diluted Share $1.50 − $1.55 AFFO Per Diluted Share $1.64 − $1.69 The Company’s estimated Core FFO per diluted share and AFFO per diluted share for 2023 is as follows: Same-Property NOI Growth1 1% − 4% General an
Slide 21: Experienced Management Team
© CTO Realty Growth, Inc. | ctoreit.com Experienced Management Team CTO Realty Growth is led by an experienced management team with meaningful shareholder alignment, deep industry relationships and a strong long-term track record. 21 John P. Albright President & Chief Executive Officer ▪ Former Co-H
Slide 22: Board of Directors
© CTO Realty Growth, Inc. | ctoreit.com Board of Directors 22 Laura M. Franklin, Chairman of the Board, Independent Director Retired. Former Executive Vice President, Accounting and Administration and Corporate Secretary of Washington Real Estate Investment Trust (Washington REIT) and a member of th
Slide 23: ESG – Corporate Responsibility
© CTO Realty Growth, Inc. | ctoreit.com ESG – Corporate Responsibility CTO Realty Growth is committed to sustainability, strong corporate governance, and meaningful corporate social responsibility programs. 23 Social Responsibility Inclusive and Supportive Company Culture ▪ Dedicated to an inclusive
Slide 24: ESG – Environmental Responsibility
© CTO Realty Growth, Inc. | ctoreit.com ESG – Environmental Responsibility 24 Over the past nine years, CTO has planted approximately 170,000 pine trees in Florida and has restored over 700 acres of former industrial timberland. These 170,000 trees absorb more than 1,000 tons of carbon each year. En
Slide 25: Appendix
NYSE: CTO Appendix The Shops at Legacy Plano, TX
Slide 26: NAV Components
© CTO Realty Growth, Inc. | ctoreit.com NAV Components As of June 30, 2023, unless otherwise noted. $ in millions. Note: 22,698,072 shares outstanding as of July 27, 2023. 1. Based on estimated 2023 net operating income of the existing income property portfolio assets as of July 27, 2023. 2. Calcula
Slide 27: Schedule of Properties
© CTO Realty Growth, Inc. | ctoreit.com Schedule of Properties 27 Property Market Asset Type Property Type Square Feet Occupancy Leased Occupancy % of Cash ABR The Collection at Forsyth Cumming, GA Atlanta, GA Mixed-Use Lifestyle 560,434 85% 88% 13% West Broad Village Glen Allen, VA Richmond, VA Mix
Slide 28: Schedule of Properties
© CTO Realty Growth, Inc. | ctoreit.com Schedule of Properties 28 Property Market Asset Type Property Type Square Feet Occupancy Leased Occupancy % of Cash ABR 125 Lincoln & 150 Washington Santa Fe, NM Santa Fe, NM Mixed Use Mixed-Use 137,177 75% 78% 3% The Exchange at Gwinnett Buford, GA Atlanta, G
Slide 29: Forward Looking Statements & Non-GAAP Financial Measures
© CTO Realty Growth, Inc. | ctoreit.com Forward Looking Statements & Non-GAAP Financial Measures 29 Forward Looking Statements Certain statements contained in this presentation (other than statements of historical fact) are forward-looking statements within the meaning of Section 27A of the Securiti
Slide 30: Non-GAAP Financial Measures
© CTO Realty Growth, Inc. | ctoreit.com Non-GAAP Financial Measures 30 Non-GAAP Financial Measures (continued) We compute FFO in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. NAREIT defines FFO as GAAP net in
Slide 31: References & Contacts
© CTO Realty Growth, Inc. | ctoreit.com References & Contacts 31 References and terms used in this presentation that are in addition to terms defined in the Non-GAAP Financial Measures include: ▪ This presentation has been published on July 27, 2023. ▪ All information is as of June 30, 2023, unless
Slide 32: Consolidated Statements of Operations
© CTO Realty Growth, Inc. | ctoreit.com Consolidated Statements of Operations 32 CTO Realty Growth, Inc. Consolidated Statements of Operations (Unaudited, in thousands, except share, per share and dividend data) Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2
Slide 33: Non-GAAP Financial Measures
© CTO Realty Growth, Inc. | ctoreit.com Non-GAAP Financial Measures 33 CTO Realty Growth, Inc. Non-GAAP Financial Measures (Unaudited, in thousands, except per share data) 1. Interest related to the 2025 Convertible Senior Notes excluded from net income attributable to the Company to derive FFO effe
Slide 34: Same-Property NOI
© CTO Realty Growth, Inc. | ctoreit.com Same-Property NOI 34 CTO Realty Growth, Inc. Same-Property NOI Reconciliation (Unaudited, in thousands) Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Net Income (Loss) Attributable to the Company $ 1,800 $ 1,218 $
Slide 35: Net Debt to Pro Forma EBITDA
© CTO Realty Growth, Inc. | ctoreit.com Net Debt to Pro Forma EBITDA 35 CTO Realty Growth, Inc. Reconciliation of Net Debt to Pro Forma EBITDA (Unaudited, in thousands) 1. Reflects the pro forma annualized impact on Annualized EBITDA of the Company’s investments and disposition activity during the t
Slide 36: Investor Inquiries
REALTY GROWTH Investor Inquiries: Matthew M. Partridge, Chief Financial Officer, (407) 904-3324, mpartridge@ctoreit.com