Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Q4 2023 Earnings Presentation
42 slides from Cto Realty Growth's earnings presentation, Feb 22, 2024
Slide 1: Supplemental Reporting Information Q4 2023
© CTO Realty Growth, Inc. | ctoreit.com Daytona Beach Restaurants Daytona Beach, FL Supplemental Reporting Information Q4 2023 REALTY GROWTH
Slide 2: Table of Contents
© CTO Realty Growth, Inc. | ctoreit.com 18 Table of Contents Full Year and Fourth Quarter 2023 Earnings Release 4 Key Financial Information ▪ Consolidated Balance Sheets 1 5 ▪ Consolidated Statements of Operations 1 6 ▪ Non -GAAP Financial Measures 1 7 Capitalization & Dividends 20 Summary of Debt 2
Slide 3: Table of Contents
© CTO Realty Growth, Inc. | ctoreit.com 19 Table of Contents Leasing Summary 29 Comparable Leasing Summary 30 Same-Property NOI 31 Lease Expirations 32 Top Tenant Summary 34 Geographic Diversification 35 Other Assets 36 2024 Guidance 37 Contact Information & Research Coverage 38 Safe Harbor, Non-GAA
Slide 4: CTO Realty Growth Reports Fourth Quarter and Full Year 2023 Operating Results
© CTO Realty Growth, Inc. | ctoreit.com 4 Press Release Contact: Matthew M. Partridge Senior Vice President, Chief Financial Officer, and Treasurer (407) 904-3324 mpartridge@ctoreit.com FOR IMMEDIATE RELEASE CTO REALTY GROWTH REPORTS FOURTH QUARTER AND FULL YEAR 2023 OPERATING RESULTS WINTER PARK, F
Slide 5: Select Fourth Quarter 2023 Highlights
© CTO Realty Growth, Inc. | ctoreit.com 5 • On February 16, 2024, the Company completed the sale of its remaining Subsurface Interests for gross proceeds of $5.0 million. Select Fourth Quarter 2023 Highlights • Reported Net Income per diluted share attributable to common stockholders of $0.25 for th
Slide 6: Full Year 2023 Results Summary
© CTO Realty Growth, Inc. | ctoreit.com 6 Net Income (Loss) Attributable to Common Stockholders $ 758 $ (1,623) $ 2,381 146.7% Net Income (Loss) per Diluted Share Attributable to Common Stockholders(1) $ 0.03 $ (0.09) $ 0.12 133.3% Core FFO Attributable to Common Stockholders (2) $ 39,783 $ 32,212 $
Slide 7: Investments and Dispositions
© CTO Realty Growth, Inc. | ctoreit.com 7 Investments During the year ended December 31, 2023, the Company invested $80.0 million into four retail property acquisitions totaling 470,600 square feet and one land parcel and originated two first mortgage structured investments totaling $30.4 million. T
Slide 8: Portfolio Summary and Same-Property NOI
© CTO Realty Growth, Inc. | ctoreit.com 8 Property Type # of Properties Square Feet % of Cash Base Rent Retail 14 2,148 56.7% Office 1 210 5.0% Mixed-Use 5 1,355 38.3% Total / Weighted Average Lease Term 20 3,712 100% Square feet in thousands. Any differences are a result of rounding. Leased Occupan
Slide 9: Leasing Activity
© CTO Realty Growth, Inc. | ctoreit.com 9 Square Feet Weighted Average Lease Term Cash Rent Per Square Foot Tenant Improvements Leasing Commissions New Leases 239 8.6 years $27.46 $ 7,087 $ 3,079 Renewals & Extensions 258 4.6 years $24.92 142 173 Total / Weighted Average 497 8.7 years $26.15 $ 7,229
Slide 10: Capital Markets Activity and Long-Term Debt
© CTO Realty Growth, Inc. | ctoreit.com 10 • Repurchased 14,398 shares of Series A Preferred Stock at an average price of $18.40 per share. • Entered into a $50 million forward starting interest rate swap agreement to fix SOFR at a weighted average fixed swap rate of 3.85% for the period between Feb
Slide 11: 2024 Guidance
© CTO Realty Growth, Inc. | ctoreit.com 11 2024 Guidance The Company’s estimated Core FFO per diluted share and AFFO per diluted share for 2024 is as follows: 2024 Guidance Range Low High Core FFO Per Diluted Share $1.56 to $1.64 AFFO Per Diluted Share $1.70 to $1.78 The Company’s 2024 guidance incl
Slide 12: Safe Harbor
© CTO Realty Growth, Inc. | ctoreit.com 12 We encourage you to review our most recent investor presentation and supplemental financial information, which is available on our website at www.ctoreit.com. Safe Harbor Certain statements contained in this press release (other than statements of historica
Slide 13: Non-GAAP Financial Measures: FFO
© CTO Realty Growth, Inc. | ctoreit.com 13 on our statement of cash flows as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures. We compute FFO in accordance with the definition adopted by the Board of Governors of the National Association of Rea
Slide 14: Non-GAAP Financial Measures Discussion
© CTO Realty Growth, Inc. | ctoreit.com 14 FFO is used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers primarily because it excludes the effect of real estate depreciation and amortization and net gains or losses
Slide 15: Consolidated Balance Sheets
© CTO Realty Growth, Inc. | ctoreit.com 15 Consolidated Balance Sheet CTO Realty Growth, Inc. Consolidated Balance Sheets (In thousands, except share and per share data) As of December 31, 2023 December 31, 2022 ASSETS Real Estate: Land, at Cost $ 222,232 $ 233,930 Building and Improvements, at Cost
Slide 16: Consolidated Statements of Operations
© CTO Realty Growth, Inc. | ctoreit.com 16 Consolidated P&L CTO Realty Growth, Inc. Consolidated Statements of Operations (In thousands, except share, per share and dividend data) (Unaudited) Three Months Ended Year Ended December 31, December 31, December 31, December 31, 2023 2022 2023 2022 Revenu
Slide 17: Same-Property NOI Reconciliation
© CTO Realty Growth, Inc. | ctoreit.com 17 Non-GAAP Financial Measures CTO Realty Growth, Inc. Non-GAAP Financial Measures Same-Property NOI Reconciliation (Unaudited) (In thousands) Three Months Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Net Income (Los
Slide 18: FFO, Core FFO and AFFO Reconciliation
© CTO Realty Growth, Inc. | ctoreit.com 18 Non-GAAP Financial Measures CTO Realty Growth, Inc. Non-GAAP Financial Measures (Unaudited) (In thousands, except per share data) Three Months Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Net Income (Loss) Attribu
Slide 19: Reconciliation of Net Debt to Pro Forma EBITDA
© CTO Realty Growth, Inc. | ctoreit.com 19 Non-GAAP Financial Measures CTO Realty Growth, Inc. Non-GAAP Financial Measures Reconciliation of Net Debt to Pro Forma EBITDA (Unaudited) (In thousands) Three Months Ended December 31, 2023 Net Income Attributable to the Company $ 7,037 Depreciation and Am
Slide 20: Capitalization & Dividends
© CTO Realty Growth, Inc. | ctoreit.com 20 Capitalization & Dividends Equity Capitalization Common Shares Outstanding 22,643 Common Share Price $17.33 Total Common Equity Market Capitalization $392,404 Series A Preferred Shares Outstanding 2,979 Series A Preferred Par Value Per Share $25.00 Series A
Slide 21: Debt Summary
© CTO Realty Growth, Inc. | ctoreit.com 21 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 Fourth Quarter and Full Year 2023 Earnings Release. Indebtedness Outstanding Face Value Interest Rate Maturi
Slide 22: Debt Maturities
© CTO Realty Growth, Inc. | ctoreit.com 22 Debt Maturities Year Outstanding % of Debt Maturing Cumulative % of Debt Maturing Weighted Average Rate 2024 $ − − % − % − % 2025 51,034 10% 10% 3.88% 2026 82,800 17% 27% 2.45% 2027 263,000 53% 80% 4.51% 2028 100,000 20% 100% 5.48% Total $496,834 100% 4.30%
Slide 23: Year-to-Date Investments
© CTO Realty Growth, Inc. | ctoreit.com 23 Year-to-Date Investments Property Acquisitions Market Type Date Acquired Square Feet Price Occupancy At Acquisition Phase II of The Exchange at Gwinnett (4 of 5 parcels) Buford, GA Atlanta, GA Retail Parcels February, May & June 2023 24,100 $14,554 100% Pla
Slide 24: Year-to-Date Dispositions
© CTO Realty Growth, Inc. | ctoreit.com 24 Year-to-Date Dispositions Property Market Type Date Sold Square Feet Price Gain (Loss) Jollibee – Eastern Commons Henderson, NV Las Vegas, NV Single Tenant Retail Outparcel June 2023 3,698 $2,080 $824 Del Taco – Crossroads Town Center Chandler, AZ Phoenix,
Slide 25: Real Estate Portfolio Capital Investments
© CTO Realty Growth, Inc. | ctoreit.com 25 Real Estate Portfolio Capital Investments Investment in Previously Occupied Space Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Capital Expenditures $ − $ − $ − $467 $467 Tenant Improvement Allowances 47 1 238 5 291 Leasing Commissions 11 72 186 109 378 Total Invest
Slide 26: Real Estate Portfolio Summary
© CTO Realty Growth, Inc. | ctoreit.com 26 Real Estate Portfolio Summary Total Portfolio as of December 31, 2023 Asset Type Number of Properties Square Feet Cash ABR PSF Occupancy Leased Occupancy Single Tenant 6 252 $21.98 100.0% 100.0% Multi-Tenant 14 3,461 $19.49 89.6% 92.8% Total Portfolio 20 3,
Slide 27: Real Estate Portfolio Detail
© CTO Realty Growth, Inc. | ctoreit.com 27 Real Estate Portfolio Detail Property Type Year Acquired/ Developed Year Built Acreage Square Feet In-Place Occupancy Leased Occupancy Cash ABR PSF Atlanta, GA The Collection at Forsyth Lifestyle 2022 2006 69.5 560,658 86% 88% $19.01 Ashford Lane Lifestyle
Slide 28: Portfolio Detail
© CTO Realty Growth, Inc. | ctoreit.com 28 Portfolio Detail Property Type Year Acquired/ Developed Year Built Acreage Square Feet In-Place Occupancy Leased Occupancy Cash ABR PSF Albuquerque, NM Fidelity Single Tenant Office 2018 2009 25.3 210,067 100% 100% $17.49 Houston, TX Price Plaza Shopping Ce
Slide 29: Leasing Summary
© CTO Realty Growth, Inc. | ctoreit.com 29 Leasing Summary Renewals and Extensions Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Leases 11 11 5 11 38 Square Feet 95 48 59 56 258 New Cash Rent PSF $22.71 $31.37 $20.79 $27.48 $24.92 Tenant Improvements $40 $13 $89 $ − $142 Leasing Commissions $68 $6 $63 $37 $1
Slide 30: Comparable Leasing Summary
© CTO Realty Growth, Inc. | ctoreit.com 30 Comparable Leasing Summary Renewals and Extensions - Comparable Number of Leases Signed GLA Signed New Cash Rent PSF Expiring Cash Rent PSF % Increase Over Expiring Rent Weighted Average Lease Term Tenant Improvements Lease Commissions 1st Quarter 2023 11 9
Slide 31: Same-Property NOI
© CTO Realty Growth, Inc. | ctoreit.com 31 Same-Property NOI Multi-Tenant Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Number of Comparable Properties 11 11 12 11 9 Same-Property NOI – 2023 $8,402 $8,703 $8,971 $8,994 $29,218 Same-Property NOI – 2022 $8,576 $9,097 $9,575 $8,701 $30,451 $ Variance ($174) ($3
Slide 32: Lease Expiration Schedule
© CTO Realty Growth, Inc. | ctoreit.com 32 Lease Expiration Schedule Anchor Tenants Year Leases Expiring Expiring SF % of Total Cash ABR % of Total Cash ABR PSF 2024 4 101 3.0% $913 1.3% $8.99 2025 5 95 2.8% 2,187 3.0% $23.10 2026 9 280 8.4% 5,326 7.3% $19.04 2027 9 349 10.4% 3,937 5.4% $11.28 2028
Slide 33: Lease Expiration Schedule Total
© CTO Realty Growth, Inc. | ctoreit.com 33 Lease Expiration Schedule Total Year Leases Expiring Expiring SF % of Total Cash ABR % of Total Cash ABR PSF 2024 44 232 6.9% $4,152 5.7% $17.83 2025 41 212 6.3% 5,951 8.2% $28.17 2026 61 465 13.9% 10,676 14.6% $22.97 2027 69 527 15.7% 9,035 12.4% $17.13 20
Slide 34: Top Tenant Summary
© CTO Realty Growth, Inc. | ctoreit.com 34 Top Tenant Summary Tenant/Concept Credit Rating1 Leases Leased Square Feet % of Total Cash ABR % of Total Fidelity A+ / A3 2 218 5.9% $3,674 5.0% AMC CCC+ / Caa2 2 90 2.4% 2,189 3.0% Best Buy BBB+ / A3 3 112 3.0% 1,749 2.4% Whole Foods Market AA- / A1 1 60
Slide 35: Geographic Diversification
© CTO Realty Growth, Inc. | ctoreit.com 35 Geographic Diversification Markets Properties Square Feet % of Total Cash ABR % of Total 5-Mile 2023 Average Household Income 5-Mile 2023 Total Population 2023-2028 Projected Population Annual Growth Atlanta, GA 4 1,094 29% $25,484 35% $157,289 220,742 1.0%
Slide 36: Other Assets
© CTO Realty Growth, Inc. | ctoreit.com 36 Other Assets Investment Securities Shares & Operating Partnership Units Owned Value Per Share December 31, 2023 Estimated Value Annualized Dividend Per Share In-Place Annualized Dividend Income Alpine Income Property Trust 2,333 $16.91 $39,445 $1.10 $2,566
Slide 37: 2024 Guidance
© CTO Realty Growth, Inc. | ctoreit.com 37 2024 Guidance Low High Core FFO Per Diluted Share $1.56 − $1.64 AFFO Per Diluted Share $1.70 − $1.78 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 38: Contact Information & Research Coverage
© CTO Realty Growth, Inc. | ctoreit.com 38 Contact Information & Research Coverage Contact Information Corporate Office Locations Investor Relations Transfer Agent New York Stock Exchange 369 N. New York Ave., Suite 201 Winter Park, FL 32789 1140 N. Williamson Blvd., Suite 140 Daytona Beach, FL 3211
Slide 39: Safe Harbor
© CTO Realty Growth, Inc. | ctoreit.com 39 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 40: Non-GAAP Financial Measures
© CTO Realty Growth, Inc. | ctoreit.com 40 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 41: Non-GAAP Financial Measures (Continued)
© CTO Realty Growth, Inc. | ctoreit.com 41 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 42: Definitions & Terms
© CTO Realty Growth, Inc. | ctoreit.com 42 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 February 22, 2024. ▪ All information is as of December 31, 2023, unless