Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Q1 2024 Earnings Presentation
39 slides from Cto Realty Growth's earnings presentation, May 2, 2024
Slide 1: Supplemental Reporting Information Q1 2024
© CTO Realty Growth, Inc. | ctoreit.com Daytona Beach Restaurants Daytona Beach, FL Supplemental Reporting Information Q1 2024 REALTY GROWTH
Slide 2: Table of Contents
© CTO Realty Growth, Inc. | ctoreit.com 2 Table of Contents First Quarter 2024 Earnings Release 4 Key Financial Information Consolidated Balance Sheets 12 Consolidated Statements of Operations 13 Non-GAAP Financial Measures 14 Capitalization & Dividends 17 Summary of Debt 18 Debt Maturity Sche
Slide 3: Table of Contents
© CTO Realty Growth, Inc. | ctoreit.com 3 Table of Contents Leasing Summary 26 Comparable Leasing Summary 27 Same-Property NOI 28 Lease Expirations 29 Top Tenant Summary 31 Geographic Diversification 32 Other Assets 33 2024 Guidance 34 Contact Information & Research Coverage 35 Safe Harbor, Non-GAAP
Slide 4: CTO Realty Growth Reports First Quarter 2024 Operating Results
Page 4 Press Release Contact: Lisa M. Vorakoun Senior Vice President, Chief Accounting Officer (386) 944-5641 lvorakoun@ctoreit.com FOR IMMEDIATE RELEASE CTO REALTY GROWTH REPORTS FIRST QUARTER 2024 OPERATING RESULTS WINTER PARK, FL – May 2, 2024 – CTO Realty Growth, Inc. (NYSE: CTO) (the “Company”
Slide 5: CEO Comments and Quarterly Financial Results Highlights
Page 5 CEO Comments “We are pleased with our strong acquisition activity to start the year with $71.0 million in property acquisitions, including our $68.7 million Marketplace at Seminole Towne Center in Orlando, Florida. We also successfully sold a small mixed-use property in Santa Fe, New Mexico a
Slide 6: Investments, Dispositions and Portfolio Summary
Page 6 During the three months ended March 31, 2024, the Company originated a $10.0 million first mortgage loan, secured by a retail development in the West Palm Beach, Florida market, of which $6.7 million was funded during the three months ended March 31, 2024, at a fixed interest rate of 11.0%. D
Slide 7: Leasing Activity
Page 7 Leasing Activity During the quarter ended March 31, 2024, the Company signed 19 leases totaling 104,114 square feet. On a comparable basis, which excludes vacancy existing at the time of acquisition, CTO signed 15 leases totaling 94,699 square feet at an average cash base rent of $26.09 per s
Slide 8: Capital Markets and Debt Footnotes
Page 8 (1) The Company utilized interest rate swaps on the $65.0 million 2026 Term Loan balance to fix SOFR and achieve a weighted average fixed swap rate of 1.27% plus the 10 bps SOFR adjustment plus the applicable spread. (2) Mortgage note assumed in connection with the acquisition of Price Plaza
Slide 9: 2024 Guidance and Earnings Conference Call
Page 9 Investment, including structured investments, between $100 million and $150 million at a weighted average initial cash yield between 7.75% and 8.25%. Disposition of assets between $50 million and $75 million at a weighted average exit cash yield between 7.50% and 8.25% Earnings Conference
Slide 10: Forward-Looking Statements
Page 10 on the global economy and the Company’s financial condition and results of operations; the inability of major tenants to continue paying their rent or obligations due to bankruptcy, insolvency or a general downturn in their business; the loss or failure, or decline in the business or assets
Slide 11: Non-GAAP Financial Measures Definitions
Page 11 from sales of depreciable real estate assets, impairment write-downs associated with depreciable real estate assets, impairments associated with the implementation of current expected credit losses on commercial loans and investments at the time of origination, including the pro rata share o
Slide 12: Consolidated Balance Sheets
Page 12 CTO Realty Growth, Inc. Consolidated Balance Sheets (In thousands, except share and per share data) As of (Unaudited) March 31, 2024 December 31, 2023 ASSETS Real Estate: Land, at Cost $ 234,681 $ 222,232 Building and Improvements, at Cost 599,901 559,389 Other Furnishings and Equipment, at
Slide 13: Consolidated Statements of Operations
Page 13 CTO Realty Growth, Inc. Consolidated Statements of Operations (Unaudited) (In thousands, except share, per share and dividend data) Three Months Ended March 31, 2024 March 31, 2023 Revenues Income Properties $ 24,623 $ 22,432 Management Fee Income 1,105 1,098 Interest Income from Commercial
Slide 14: Same-Property NOI Reconciliation
Page 14 CTO Realty Growth, Inc. Non-GAAP Financial Measures Same-Property NOI Reconciliation (Unaudited) (In thousands) Three Months Ended March 31, 2024 March 31, 2023 Net Income (Loss) Attributable to the Company $ 5,842 $ (5,993) Gain on Disposition of Assets (9,163) — Provision for Impairment 48
Slide 15: FFO, Core FFO and AFFO Reconciliation
Page 15 CTO Realty Growth, Inc. Non-GAAP Financial Measures Funds from Operations, Core Funds from Operations, and Adjusted Funds from Operations Attributable to Common Stockholders (Unaudited) (In thousands, except per share data) Three Months Ended March 31, 2024 March 31, 2023 Net Income (Loss) A
Slide 16: Reconciliation of Net Debt to Pro Forma EBITDA
Page 16 CTO Realty Growth, Inc. Non-GAAP Financial Measures Reconciliation of Net Debt to Pro Forma EBITDA (Unaudited) (In thousands) Three Months Ended March 31, 2024 Net Income Attributable to the Company $ 5,842 Depreciation and Amortization of Real Estate 10,915 Gain on Disposition of Assets (9,
Slide 17: Capitalization & Dividends
© CTO Realty Growth, Inc. | ctoreit.com 17 Capitalization & Dividends Equity Capitalization Common Shares Outstanding 22,909 Common Share Price $16.95 Total Common Equity Market Capitalization $388,309 Series A Preferred Shares Outstanding 2,979 Series A Preferred Par Value Per Share $25.00 Series A
Slide 18: Debt Summary
© CTO Realty Growth, Inc. | ctoreit.com 18 Debt Summary $ in thousands. Any differences are a result of rounding. 1. See reconciliation as part of Non-GAAP Financial Measures in the Company’s First Quarter 2024 Earnings Release. Indebtedness Outstanding Face Value Interest Rate Maturity Date Type 20
Slide 19: Debt Maturities
© CTO Realty Growth, Inc. | ctoreit.com 19 Debt Maturities Year Outstanding % of Debt Maturing Cumulative % of Debt Maturing Weighted Average Rate 2024 $ − − % − % − % 2025 51,034 9% 9% 3.88% 2026 82,800 16% 25% 3.13% 2027 309,500 57% 82% 4.74% 2028 100,000 18% 100% 5.33% Total $543,334 100% 4.52% $
Slide 20: Year-to-Date Investments
© CTO Realty Growth, Inc. | ctoreit.com 20 Year-to-Date Investments Occupancy At Price Acquisition Square Property Acquisitions Market Type Date Acquired Feet Atlanta, GA Single Tenant Retail February 2024 4,000 $2,272 100% Phase II of The Exchange at Gwinnett (5 of 5 parcels) Buford, GA Orlando, FL
Slide 21: Year-to-Date Dispositions
© CTO Realty Growth, Inc. | ctoreit.com 21 Year-to-Date Dispositions Price Gain Square Property Market Type Date Sold Feet Santa Fe Mixed Use March 2024 136,240 $19,977 $4,618 125 Lincoln & 150 Washington Santa Fe, NM Total Dispositions 136,240 $19,977 $4,618 $ in thousands. Any differences are a re
Slide 22: Real Estate Portfolio Capital Investments
© CTO Realty Growth, Inc. | ctoreit.com 22 Real Estate Portfolio Capital Investments Investment in Previously Occupied Space Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Capital Expenditures $ − $ − Tenant Improvement Allowances 48 48 Leasing Commissions 541 541 Total Investment in Previously Occupied Space
Slide 23: Real Estate Portfolio Summary
© CTO Realty Growth, Inc. | ctoreit.com 23 Real Estate Portfolio Summary Total Portfolio as of March 31, 2024 Square Feet Cash ABR PSF Occupancy Leased Occupancy Number of Asset Type Properties Single Tenant 6 252 $21.98 100.0% 100.0% Multi-Tenant 14 3,643 $19.75 92.1% 93.9% Total Portfolio 20 3,895
Slide 24: Real Estate Portfolio Detail
© CTO Realty Growth, Inc. | ctoreit.com 24 Real Estate Portfolio Detail Cash ABR PSF Leased Occupancy In-Place Year Built Acreage Square Feet Occupancy Year Acquired/ Property Type Developed Atlanta, GA The Collection at Forsyth Lifestyle 2022 2008 69.5 560,658 87% 88% $19.72 Ashford Lane Lifestyle
Slide 25: Portfolio Detail
© CTO Realty Growth, Inc. | ctoreit.com 25 Portfolio Detail Cash ABR PSF Leased Occupancy In-Place Year Built Acreage Square Feet Occupancy Year Acquired/ Property Type Developed Albuquerque, NM Fidelity Single Tenant Office 2018 2009 25.3 210,067 100% 100% $17.49 Houston, TX Price Plaza Shopping Ce
Slide 26: Leasing Summary
© CTO Realty Growth, Inc. | ctoreit.com 26 Leasing Summary Renewals and Extensions Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Leases 10 10 Square Feet 34 34 New Cash Rent PSF $29.26 $29.26 Tenant Improvements $15 $15 Leasing Commissions $40 $40 Weighted Average Term 3.8 years 3.8 years New Leases Q1 2024
Slide 27: Comparable Leasing Summary
© CTO Realty Growth, Inc. | ctoreit.com 27 Comparable Leasing Summary Lease Commissions Tenant Improvements Weighted Average Lease Term % Increase Over Expiring Rent Expiring Cash Rent PSF New Cash Rent PSF GLA Signed Number of Leases Signed Renewals and Extensions - Comparable 1st Quarter 2024 10 3
Slide 28: Same-Property NOI
© CTO Realty Growth, Inc. | ctoreit.com 28 Same-Property NOI Multi-Tenant Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Number of Comparable Properties 12 12 Same-Property NOI – 2024 $13,966 $13,966 Same-Property NOI – 2023 $13,305 $13,305 $ Variance $661 $661 % Variance 5.0% 5.0% Single-Tenant Q1 2024 Q2 20
Slide 29: Lease Expiration Schedule
© CTO Realty Growth, Inc. | ctoreit.com 29 Lease Expiration Schedule Anchor Tenants Year Leases Expiring Expiring SF % of Total Cash ABR % of Total Cash ABR PSF 2024 4 101 2.8% $913 1.2% $8.99 2025 6 113 3.1% 2,469 3.2% $21.76 2026 8 266 7.4% 4,883 6.3% $18.37 2027 11 413 11.4% 4,379 5.7% $10.61 202
Slide 30: Lease Expiration Schedule Total
© CTO Realty Growth, Inc. | ctoreit.com 30 Lease Expiration Schedule Total Year Leases Expiring Expiring SF % of Total Cash ABR % of Total Cash ABR PSF 2024 31 188 5.2% $3,091 4.0% $16.44 2025 42 231 6.4% 6,137 7.9% $26.54 2026 59 452 12.5% 10,371 13.4% $22.95 2027 69 583 16.2% 9,474 12.2% $16.25 20
Slide 31: Top Tenant Summary
© CTO Realty Growth, Inc. | ctoreit.com 31 Top Tenant Summary % of Total Cash ABR % of Total Leased Credit Rating Leases Square Feet Tenant/Concept 1 Fidelity A+ / A3 2 218 5.6% $3,674 4.7% AMC CCC+ / Caa2 2 90 2.3% 2,189 2.8% Best Buy BBB+ / A3 3 112 2.9% 1,749 2.3% Whole Foods Market AA- / A1 1 60
Slide 32: Geographic Diversification
© CTO Realty Growth, Inc. | ctoreit.com 32 Geographic Diversification 2023-2028 Projected Population Annual Growth 5-Mile 2023 Total Population 5-Mile 2023 Average Markets Properties Square Feet % of Total Cash ABR % of Total Household Income Atlanta, GA 4 1,098 28% $26,617 34% $157,418 220,272 1.0%
Slide 33: Other Assets
© CTO Realty Growth, Inc. | ctoreit.com 33 Other Assets In-Place Annualized Dividend Income Annualized Dividend Estimated Value Per Share Value Per Share March 31, 2024 Shares & Operating Investment Securities Partnership Units Owned Alpine Income Property Trust 2,333 $15.28 $35,643 $1.10 $2,566 Int
Slide 34: 2024 Guidance
© CTO Realty Growth, Inc. | ctoreit.com 34 2024 Guidance Low High Core FFO Per Diluted Share $1.60 − $1.68 AFFO Per Diluted Share $1.74 − $1.82 The Company’s estimated Core FFO per diluted share and AFFO per diluted share for 2024 is as follows: The Company’s 2024 guidance includes but is not limite
Slide 35: Contact Information & Research Coverage
© CTO Realty Growth, Inc. | ctoreit.com 35 Contact Information & Research Coverage Contact Information New York Investor Relations Transfer Agent Stock Exchange Corporate Office Locations Ticker Symbol: CTO Series A Preferred Ticker Symbol: CTO-PA www.ctoreit.com Computershare Trust Company, N.A. (8
Slide 36: Safe Harbor
© CTO Realty Growth, Inc. | ctoreit.com 36 Safe Harbor Certain statements contained in this presentation (other than statements of historical fact) are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange A
Slide 37: Non-GAAP Financial Measures
© CTO Realty Growth, Inc. | ctoreit.com 37 Non-GAAP Financial Measures Our reported results are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We also disclose Funds From Operations (“FFO”), Core Funds From Operations (“Core FFO”), Adj
Slide 38: Non-GAAP Financial Measures (Continued)
© CTO Realty Growth, Inc. | ctoreit.com 38 Non-GAAP Financial Measures (Continued) To derive Same-Property NOI, GAAP net income or loss attributable to the Company is adjusted to exclude real estate related depreciation and amortization, as well as extraordinary items (as defined by GAAP) such as ne
Slide 39: Definitions & Terms
© CTO Realty Growth, Inc. | ctoreit.com 39 Definitions & Terms References and terms used in this presentation that are in addition to terms defined in the Non-GAAP Financial Measures include: This presentation was published on May 2, 2024. All information is as of March 31, 2024, unless otherwis