CTO Realty Growth, Inc. · NYSE:CTO
CTO Realty Growth — Q3 2022 Earnings Presentation
35 slides from CTO Realty Growth's earnings presentation, October 2022
Slide 1: Investor Presentation October 2022
REALTY GROWTH Investor Presentation October 2022 West Broad Village Glen Allen, VA
Slide 2: Company Highlights
Company Highlights Differentiated Stable and Investment Flexible Strategy Balance Sheet Focusing on Asset Ample Liquidity and Recycling and Value- No Upcoming Debt Add Acquisitions Maturities Madison Yards West Broad Village Jordan Landing Atlanta, GA Glen Allen, VA West Jordan, UT Sunbelt Retail &
Slide 3: Company Profile
Company Profile 93% 19 3.1M 8.0% LEASED PROPERTIES SQUARE FEET IMPLIED CAP RATE OCCUPANCY 8.4% IMPLIED INVESTMENT YIELD $40M $1.79 – $1.82 INVESTMENT IN AFFO PER SHARE GUIDANCE RANGE ALPINE INCOME PROPERTY TRUST $376M $427M $75M $871M EQUITY MARKET CAP(1) OUTSTANDING DEBT SERIES A PREFERRED ENTERPR
Slide 4: NAV Components
NAV Components Net Operating Income of Income Property Portfolio(1) $60.5 $60.5 $60.5 $60.5 $60.5 ÷ Capitalization Rate 6.50% 6.75% 7.00% 7.25% 7.50% Income Portfolio Value $931.3 $896.8 $864.8 $835.0 $807.1 Other Assets: + Estimated Value for Subsurface Interests, Mitigation Credits and Other Asset
Slide 5: Year-To-Date Highlights
Year-To-Date Highlights Accretive and Opportunistic Investment Activity ▪ Acquired three multi-tenant retail and mixed-used properties (Price Plaza - Houston, TX, Madison Yards – Atlanta, GA, and West Broad Village – Richmond, VA) at a weighted-average going-in cash cap rate of 7.0% for total acquis
Slide 6: Differentiated Investment Strategy
Differentiated Investment Strategy 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 Execution ▪ Focused on retail-based multi-tenanted asse
Slide 7: Peer Comparisons
Peer Comparisons CTO has an outsized dividend yield and attractive absolute valuation relative to many of its retail-focused peer group, implying valuation upside. 16.0x 8.50% 2022E FFO Multiple and Annualized Dividend Yield(1) 15.0x 15.0x 7.6% 7.50% 14.0x CTO is trading at an implied 8.0% cap rate
Slide 8: Real Estate and Investment Strategy
Real Estate and Investment Strategy 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 cash flows and underlying real estate va
Slide 9: Cumulative Investment Activity
Meaningful Progress with Portfolio Repositioning Investment and Disposition Activity 50000.0% $489 500.0 450.0 40000.0% $374 400.0 $365 350.0 Cumulative Investment Activity 30000.0% 300.0 The Shops at Legacy Plano, TX 250.0 20000.0% 200.0 150.0 10000.0% 100.0 50.0 0.0% 0.0 (1) 2020 2021 2022 Guidanc
Slide 10: Durable Portfolio with Growth Opportunities
Durable Portfolio with 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. Repositioning Upside Essential Retail Stable Cash Flow Ashfor
Slide 11: Recent Acquisition – West Broad Village, Glen Allen, VA
Recent Acquisition – West Broad Village, Glen Allen, VA Newly acquired 392,000 square foot ▪ Region’s premier mixed-use destination property ▪ Amplified trade area allowing the property grocery- anchored, mixed-use lifestyle anchored by Whole Foods (S&P: AA- ) to benefit from five-mile average house
Slide 12: Recent Acquisition – Madison Yards, Atlanta, GA
Recent Acquisition – Madison Yards, Atlanta, GA Recently acquired 162,500 square foot grocery- anchored shopping center that has established Atlanta as CTO’s top investment market Madison Yards ▪ Stable, high barrier-to-entry, in-fill location in Atlanta’s Inman Park/Beltline submarket ▪ Over 445 fe
Slide 13: Strong Demographic Portfolio
Strong Demographic Portfolio 228,950 Portfolio Average $130,500 Portfolio Average 0.9% Portfolio Average 2022 - 2027 68% Percentage of Portfolio ABR 5-Mile Population (1) 5-Mile Household Income (1) Projected Annual Population Growth (1) from ULI’s Top 30 Markets (1) Atlanta, GA 23% Dallas, TX 13% R
Slide 14: Meaningful Property Cash Flow & Leasing Momentum
Meaningful Property Cash Flow & Leasing Momentum Leases Signed in 2022 Lease Rollover Schedule(1) 20.0% 19.0% 18% 18.0% 17.0% 16.0% 15% 15% 15.0% 14.0% 13.0% 12.0% % of ABR Expiring 11.0% 10% ▪ YTD Q3 2022 Year-Over-Year Same-Property NOI 21.5% 10.0% 9% o 31.5% YTD Q3 2022 multi-tenant same-property
Slide 15: Repositioning – Ashford Lane, Atlanta, GA
Repositioning – Ashford Lane, Atlanta, GA 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- (Not Owned) focused experience THE HALL T H E H A L L Acquired as Perimeter Place in 2020, with an
Slide 16: Repositioning – Ashford Lane, Atlanta, GA
Repositioning – Ashford Lane, Atlanta, GA Ashford Lane is being repositioned as a higher-end shopping and dining destination within a growing and relatively affluent submarket of Atlanta ▪ Opportunity to deliver increased rental rates with higher-end tenants supported by new multi-family and office
Slide 17: Repositioning – 125 Lincoln & 150 Washington, Santa Fe, NM
Repositioning – 125 Lincoln & 150 Washington, Santa Fe, NM Plaza 125 Lincoln & 150 Washington Santa Fe, NM 125 Lincoln & 150 Washington 125 Lincoln & 150 Washington Santa Fe, NM Santa Fe, NM Signed a 9,200 square foot lease ▪ Two-building property with dedicated ▪ Currently negotiating letters of in
Slide 18: Consistent Dividend Growth
Consistent Dividend Growth $1.48 ▪ 46 consecutive years of paying a common dividend ▪ Under current management (beginning in 2011), $1.33 the Company’s common stock cash dividend has grown in each of the last 10 years CTO converted to a REIT in ▪ Company policy is to target a payout ratio of 100% Ca
Slide 19: 2022 Guidance
2022 Guidance CTO has provided guidance indicating as much as 55% year-over-year Core FFO per share growth in 2022. Revised 2022 Year-To-Date Performance Low High Investments $271 million – $271 million $271 million of investments Target Initial Cash Yield 7.25% – 7.25% 7.25% Dispositions $81 millio
Slide 20: Balance Sheet
Balance Sheet Debt Maturities ▪ Significant liquidity for $139 opportunistic growth $100 $83 ▪ No near-term debt maturities $51 ▪ Minimal exposure to floating 2022 2023 2024 2025 2026 2027 2028 2029 2030 interest rates Unsecured Secured Revolving Credit Facility (1) Component of Long-Term Debt Type
Slide 21: Experienced Management Team
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. John P. Albright Matthew M. Partridge President & Chief Executive Officer Senior Vice President, Chief Financ
Slide 22: ESG – Corporate Responsibility
ESG – Corporate Responsibility CTO Realty Growth is committed to sustainability, strong corporate governance, and meaningful corporate social responsibility programs. Social Responsibility Corporate Governance ▪ Independent Chairman of the Board and 5 of Inclusive and Supportive Company Culture 6 Di
Slide 23: ESG – Environmental Responsibility
ESG – Environmental Responsibility Environmental Responsibility Committed Focus & Targeted Investment ▪ Committed to maintaining an environmentally conscious culture, the utilization of environmentally friendly & renewable products, and the promotion of sustainable business practices. Notable achiev
Slide 24: Key Takeaways
Key Takeaways Earnings Growth Through Capital Recycling Strong, long-term track record of monetizing assets at favorable spreads to drive accretive earnings growth and attractive risk-adjusted returns. Attractive Dividend and Improving Payout Ratio CTO paid a $0.38 third quarter cash dividend, repre
Slide 25: Appendix
NYSE: CTO Appendix The Shops at Legacy Plano, TX
Slide 26: Schedule of Properties
Schedule of Properties Property Square In-Place Leased Property Market Asset Type % of ABR Type Feet Occupancy Occupancy West Broad Village – Glen Allen, VA Richmond, VA Multi-Tenant Mixed Use 392,007 83% 83% 13% The Shops at Legacy – Plano, TX Dallas, TX Multi-Tenant Mixed Use 237,366 92% 96% 12% A
Slide 27: Schedule of Properties
Schedule of Properties Property Square In-Place Leased Property Market Asset Type % of ABR Type Feet Occupancy Occupancy Sabal Pavilion – Tampa, FL Tampa, FL Single Tenant Office 120,500 100% 100% 4% Jordan Landing – West Jordan, UT Salt Lake City, UT Multi-Tenant Retail 170,996 100% 100% 3% Eastern
Slide 28: Forward Looking Statements & Non-GAAP Financial Measures
Forward Looking Statements & Non-GAAP Financial Measures 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 Securities Act of 1933, as amended and Section 21E
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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 income or loss adjusted to exclude extraordin
Slide 30: References & Contacts
References & Contacts 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 October 27, 2022. ▪ All information is as of September 30, 2022, unless otherwise noted. ▪ Any calculation
Slide 31: Consolidated Statements of Operations
Consolidated Statements of Operations CTO Realty Growth, Inc. Consolidated Statements of Operations (Unaudited, in thousands, except share, per share and dividend data) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2022 2021 2022 2021 Revenues Income Pr
Slide 32: Same-Property NOI
Same-Property NOI CTO Realty Growth, Inc. Same-Property NOI Reconciliation (Unaudited, in thousands) Three Months Ended September 30, 2022 September 30, 2021 Net Income Attributable to the Company $ 4,817 $ 23,947 Gain on Disposition of Assets (4,973) (22,666) Depreciation and Amortization per Incom
Slide 33: Non-GAAP Financial Measures
Non-GAAP Financial Measures CTO Realty Growth, Inc. Non-GAAP Financial Measures (Unaudited, in thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2022 2021 2022 2021 Net Income Attributable to the Company $ 4,817 $ 23,947 $
Slide 34: Net Debt to Pro Forma EBITDA
Net Debt to Pro Forma EBITDA CTO Realty Growth, Inc. Reconciliation of Net Debt to Pro Forma EBITDA (Unaudited, in thousands) Three Months Ended September 30, 2022 Net Income Attributable to the Company $ 4,817 Depreciation and Amortization 7,283 Gain on Disposition Assets (4,973) Gain on Dispositio
Slide 35: REALTY GROWTH
REALTY GROWTH The Strand at St. John’s Town Center Jacksonville, FL