Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Q1 2023 Earnings Presentation
35 slides from Cto Realty Growth's earnings presentation, Apr 27, 2023
Slide 1: Investor Presentation April 2023
Investor Presentation REALTY GROWTH April 2023 The Strand at St. John’s Town Center Jacksonville, FL
Slide 2: Company Highlights
© CTO Realty Growth, Inc. | ctoreit.com Company Highlights 2 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 outsized long-
Slide 3: Company Profile
© CTO Realty Growth, Inc. | ctoreit.com Company Profile 3 As of April 25, 2023, unless otherwise noted. 1. As of April 27, 2023. 2. Based on $16.74 per share common stock price as of April 25, 2023. The Exchange at Gwinnet Buford, GA 23 3.7M 8.0% PROPERTIES SQUARE FEET IMPLIED CAP RATE 8.4% IMPLIED
Slide 4: Why CTO?
© CTO Realty Growth, Inc. | ctoreit.com Why CTO? 4 Track Record of Earnings Growth Through Capital Recycling Strong, long-term track record of monetizing assets at favorable net investment spreads to drive accretive earnings growth and attractive risk-adjusted returns, including outperforming the RM
Slide 5: Peer Comparisons
© CTO Realty Growth, Inc. | ctoreit.com Peer Comparisons 15.0x 12.7x 12.3x 11.0x 11.0x 11.0x 10.7x 10.3x 9.3x 9.2x 4.4% 8.0x 4.3% 4.8% 5.4% 4.5% 9.1% 4.3% 5.0% 6.0% 5.3% 7.4% 4.20% 5.20% 6.20% 7.20% 8.20% 9.20% 7.5x 8.5x 9.5x 10.5x 11.5x 12.5x 13.5x 14.5x 15.5x FRT UE KIM AKR KRG CTO SITC BRX RPT WS
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: Evolution into a Leading Multi-Tenant, Retail-Focused Portfolio
© CTO Realty Growth, Inc. | ctoreit.com Evolution into a Leading Multi-Tenant, Retail-Focused Portfolio 8 20191 Number of Properties 34 27 22 23 23 Total Portfolio Square Feet 1.8M 2.5M 2.7M 3.7M 3.7M Occupancy 95% 93% 89% 90% 90% Annualized Cash Base Rent (Cash ABR) $27.6M $38.2M $49.6M $72.6M $73.
Slide 9: Strong Demographic Portfolio
© CTO Realty Growth, Inc. | ctoreit.com Strong Demographic Portfolio 9 Percentages listed based on Annualized Cash Base Rent. Differences are a result of rounding. 1. Source: Esri; Portfolio average weighted by the Annualized Cash Base Rent of each property. 2. As ranked by Urban Land Institute & PW
Slide 10: 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. 10 Reposit
Slide 11: Recent Acquisition – The Collection at Forsyth, Cumming, GA
© CTO Realty Growth, Inc. | ctoreit.com Recent Acquisition – The Collection at Forsyth, Cumming, GA 11 Recently acquired 560,000 square foot lifestyle property with significant repositioning upside in one of the fastest growing submarkets of Atlanta ▪ Built in 2006 on 59 acres, the property serves A
Slide 12: Recent Acquisition – West Broad Village, Glen Allen, VA
© CTO Realty Growth, Inc. | ctoreit.com Recent Acquisition – West Broad Village, Glen Allen, VA 12 Newly acquired 392,000 square foot grocery- anchored, mixed-use lifestyle center with attractive long-term upside from value-add leasing ▪ Region’s premier mixed-use destination property anchored by Wh
Slide 13: Recent Acquisition – Madison Yards, Atlanta, GA
© CTO Realty Growth, Inc. | ctoreit.com Recent Acquisition – Madison Yards, Atlanta, GA 13 Recently acquired 162,500 square foot grocery-anchored shopping center that established Atlanta as CTO’s top investment market ▪ Stable, high barrier-to-entry, in-fill location in Atlanta’s Inman Park/Beltline
Slide 14: Meaningful Property Cash Flow & Leasing Momentum
© CTO Realty Growth, Inc. | ctoreit.com Meaningful Property Cash Flow & Leasing Momentum 14 2% 11% 8% 16% 11% 20% 8% 5% 5% 14% 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% Lease Rollover Schedule % of ABR Expiring Leases Signed i
Slide 15: Repositioning – Ashford Lane, Atlanta, GA
© CTO Realty Growth, Inc. | ctoreit.com Repositioning – Ashford Lane, Atlanta, GA 15 Ashford Lane will incorporate outdoor seating and eating areas, along with a number of new green spaces, including The Lawn, that will drive a more community-focused experience (Not Owned) (Not Owned) (Not Owned) T
Slide 16: Repositioning – Ashford Lane, Atlanta, GA
© CTO Realty Growth, Inc. | ctoreit.com Repositioning – Ashford Lane, Atlanta, GA 16 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 suppor
Slide 17: Consistent Dividend Growth
© CTO Realty Growth, Inc. | ctoreit.com Consistent Dividend Growth 17 $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 18: 2023 Guidance
© CTO Realty Growth, Inc. | ctoreit.com 2023 Guidance 18 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 19: Balance Sheet
© CTO Realty Growth, Inc. | ctoreit.com Balance Sheet 19 $51 $83 $100 $233 2023 2024 2025 2026 2027 2028 2029 2030 Unsecured Secured Revolving Credit Facility As of March 31, 2023, unless otherwise noted. $ and shares outstanding in millions. 1. Reflects $133.2 million outstanding under the Company’
Slide 20: 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. 20 John P. Albright President & Chief Executive Officer ▪ Former Co-H
Slide 21: Board of Directors
© CTO Realty Growth, Inc. | ctoreit.com Board of Directors 21 Laura M. Franklin, 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 the Board of Directors of
Slide 22: 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. 22 Social Responsibility Inclusive and Supportive Company Culture ▪ Dedicated to an inclusive
Slide 23: ESG – Environmental Responsibility
© CTO Realty Growth, Inc. | ctoreit.com ESG – Environmental Responsibility 23 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 24: Appendix
NYSE: CTO Appendix The Shops at Legacy Plano, TX
Slide 25: NAV Components
© CTO Realty Growth, Inc. | ctoreit.com NAV Components As of April 25, 2023, unless otherwise noted. $ in millions. Note: 22,701,249 shares outstanding as of April 25, 2023. 1. Based on estimated 2023 net operating income of the existing income property portfolio assets as of April 25, 2023, plus th
Slide 26: Schedule of Properties
© CTO Realty Growth, Inc. | ctoreit.com Schedule of Properties 26 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 86% 86% 14% West Broad Village Glen Allen, VA Richmond, VA Mix
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 Exchange at Gwinnett Buford, GA Atlanta, GA Retail Grocery-Anchored 75,266 93% 100% 3% Sabal Pavilion Tampa, FL Tampa, FL Office Single
Slide 28: Forward Looking Statements & Non-GAAP Financial Measures
© CTO Realty Growth, Inc. | ctoreit.com Forward Looking Statements & Non-GAAP Financial Measures 28 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 29: Non-GAAP Financial Measures
© CTO Realty Growth, Inc. | ctoreit.com Non-GAAP Financial Measures 29 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 30: References & Contacts
© CTO Realty Growth, Inc. | ctoreit.com References & Contacts 30 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 April 27, 2023. ▪ All information is as of March 31, 2023, unles
Slide 31: Consolidated Statements of Operations
© CTO Realty Growth, Inc. | ctoreit.com Consolidated Statements of Operations 31 CTO Realty Growth, Inc. Consolidated Statements of Operations (Unaudited, in thousands, except share, per share and dividend data) Three Months Ended March 31, 2023 March 31, 2022 Revenues Income Properties $ 22,432 $ 1
Slide 32: Same-Property NOI
© CTO Realty Growth, Inc. | ctoreit.com Same-Property NOI 32 CTO Realty Growth, Inc. Same-Property NOI Reconciliation (Unaudited, in thousands) Three Months Ended March 31, 2023 March 31, 2022 Net Income (Loss) Attributable to the Company $ (5,993) $ 202 Loss on Disposition of Assets — 245 Provision
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: Net Debt to Pro Forma EBITDA
© CTO Realty Growth, Inc. | ctoreit.com Net Debt to Pro Forma EBITDA 34 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 35: Realty Growth
REALTY GROWTH Ashford Lane Atlanta, GA