Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Q3 2023 Earnings Presentation
40 slides from Cto Realty Growth's earnings presentation, Oct 26, 2023
Slide 1: Supplemental Reporting Information Q3 2023
© CTO Realty Growth, Inc. | ctoreit.com REALTY GROWTH Supplemental Reporting Information Q3 2023
Slide 2: Table of Contents
© CTO Realty Growth, Inc. | ctoreit.com Third Quarter 2023 Earnings Release 4 Key Financial Information ▪ Consolidated Balance Sheets 13 ▪ Consolidated Statements of Operations 14 ▪ Non-GAAP Financial Measures 15 Capitalization & Dividends 18 Summary of Debt 19 Debt Maturities 20 Investments 21 Disp
Slide 3: Table of Contents
© CTO Realty Growth, Inc. | ctoreit.com Lease Expirations 30 Top Tenant Summary 32 Geographic Diversification 33 Other Assets 34 2023 Guidance 35 Contact Information & Research Coverage 36 Safe Harbor, Non-GAAP Financial Measures, and Definitions and Terms 37 Table of Contents
Slide 4: CTO Realty Growth Reports Third Quarter 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 THIRD QUARTER 2023 OPERATING RESULTS WINTER PARK, FL – October 26,
Slide 5: Quarterly Financial Results Highlights
© CTO Realty Growth, Inc. | ctoreit.com 5 Quarterly Financial Results Highlights The table below provides a summary of the Company’s operating results for the three months ended September 30, 2023: (in thousands, except per share data) For the Three Months Ended September 30, 2023 For the Three Mont
Slide 6: Investments
© CTO Realty Growth, Inc. | ctoreit.com 6 (1) The denominator for this measure excludes the impact of 3.3 million and 3.1 million shares for the nine months ended September 30, 2023 and 2022, respectively, related to the Company’s adoption of ASU 2020-06, effective January 1, 2022, which requires pr
Slide 7: Same-Property NOI and Leasing Activity
© CTO Realty Growth, Inc. | ctoreit.com 7 For the Three Months Ended September 30, 2023 For the Three Months Ended September 30, 2022 Variance to Comparable Period in the Prior Year Single Tenant $ 1,791 $ 1,699 $ 92 5.4% Multi-Tenant 8,971 9,575 (604) (6.3%) Total $ 10,762 $ 11,274 $ (512) (4.5%) $
Slide 8: Subsurface Interests, Mitigation Credits and Capital Markets
© CTO Realty Growth, Inc. | ctoreit.com 8 Comparable leases compare leases signed on a space for which there was previously a tenant. Overall leasing activity does not include lease termination agreements or lease amendments related to tenant bankruptcy proceedings. Subsurface Interests and Mitigati
Slide 9: Dividends and 2023 Outlook
© CTO Realty Growth, Inc. | ctoreit.com 9 Dividends On August 23, 2023, the Company announced cash dividends on its common stock and Series A Preferred stock for the third quarter of 2023 of $0.38 per share and $0.40 per share, respectively, payable on September 29, 2023 to stockholders of record as
Slide 10: Conference Call and About CTO Realty Growth
© CTO Realty Growth, Inc. | ctoreit.com 10 We encourage participants to dial into the conference call at least fifteen minutes ahead of the scheduled start time. A replay of the earnings call will be archived and available online through the Investor Relations section of the Company’s website at www
Slide 11: Non-GAAP Financial Measures
© CTO Realty Growth, Inc. | ctoreit.com 11 because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs. FFO, Core FFO, AFFO, Pro Forma EBITDA, and Same-Property NOI do not represent cash generated from operating activities and are n
Slide 12: Non-GAAP Financial Measures (Pro Forma EBITDA, Same-Property NOI)
© CTO Realty Growth, Inc. | ctoreit.com 12 We also believe that Pro Forma EBITDA is an additional useful supplemental measure for investors to consider as it allows for a better assessment of our operating performance without the distortions created by other non-cash revenues, expenses or certain ef
Slide 13: Consolidated Balance Sheets
© CTO Realty Growth, Inc. | ctoreit.com 13 Consolidated Balance Sheet CTO Realty Growth, Inc. Consolidated Balance Sheets (In thousands, except share and per share data) As of (Unaudited) September 30, 2023 December 31, 2022 ASSETS Real Estate: Land, at Cost $ 235,880 $ 233,930 Building and Improvem
Slide 14: Consolidated Statements of Operations
© CTO Realty Growth, Inc. | ctoreit.com 14 Consolidated P&L 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, 2023 2022 2023
Slide 15: Same-Property NOI Reconciliation
© CTO Realty Growth, Inc. | ctoreit.com 15 Non-GAAP Financial Measures CTO Realty Growth, Inc. Non-GAAP Financial Measures Same-Property NOI Reconciliation (Unaudited) (In thousands) Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Net
Slide 16: Non-GAAP Financial Measures: FFO, Core FFO, AFFO
© CTO Realty Growth, Inc. | ctoreit.com 16 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, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Net Income (Lo
Slide 17: Reconciliation of Net Debt to Pro Forma EBITDA
© CTO Realty Growth, Inc. | ctoreit.com 17 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 September 30, 2023 Net Income Attributable to the Company $ 2,686 Depreciation and A
Slide 18: Capitalization & Dividends
© CTO Realty Growth, Inc. | ctoreit.com Capitalization & Dividends $ and shares outstanding in thousands, except per share data. Any differences are a result of rounding. Equity Capitalization Common Shares Outstanding 22,701 Common Share Price $16.21 Total Common Equity Market Capitalization $367,9
Slide 19: Debt Summary
© CTO Realty Growth, Inc. | ctoreit.com 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 Third Quarter 2023 Earnings Release. Indebtedness Outstanding Face Value Interest Rate Maturity Date Type 2025
Slide 20: Debt Maturities
© CTO Realty Growth, Inc. | ctoreit.com Debt Maturities $ in thousands. Any differences are a result of rounding. Year Outstanding % of Debt Maturing Cumulative % of Debt Maturing Weighted Average Rate 2023 $ − − % − % − % 2024 − − % − % − % 2025 51,034 9% 9% 3.88% 2026 82,800 15% 24% 2.45% 2027 316
Slide 21: Year-to-Date Investments
© CTO Realty Growth, Inc. | ctoreit.com Year-to-Date Investments $ in thousands. Any differences are a result of rounding. Property Acquisitions Market Type Date Acquired Square Feet Price Occupancy At Acq. Phase II of The Exchange at Gwinnett (4 of 5 parcels) Buford, GA Atlanta, GA Retail Parcels F
Slide 22: Year-to-Date Dispositions
© CTO Realty Growth, Inc. | ctoreit.com 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, AZ Single Tenant Retail Outpa
Slide 23: Operating Portfolio Capital Investments
© CTO Realty Growth, Inc. | ctoreit.com Operating Portfolio Capital Investments $ in thousands. Any differences are a result of rounding. 23 Investment in Previously Occupied Space Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Capital Expenditures $ - $ - $ - $ - Tenant Improvement Allowances 47 1 238 286 Le
Slide 24: Portfolio Summary
© CTO Realty Growth, Inc. | ctoreit.com Portfolio Summary $ and square feet in thousands, except per square foot data. Any differences are a result of rounding. 24 Total Portfolio as of September 30, 2023 Asset Type Number of Properties Square Feet Cash ABR PSF Occupancy Leased Occupancy Single Tena
Slide 25: Portfolio Detail
© CTO Realty Growth, Inc. | ctoreit.com Portfolio Detail 25 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 69.5 560,433 84% 87% $18.67 Ashford Lane Lifestyle 2020 2005 43
Slide 26: Portfolio Detail
© CTO Realty Growth, Inc. | ctoreit.com Portfolio Detail 26 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% $17.23 Houston, TX Price Plaza Shopping Ce
Slide 27: Leasing Summary
© CTO Realty Growth, Inc. | ctoreit.com Leasing Summary $ and square feet in thousands, except per square foot data. Any differences are a result of rounding. Overall leasing activity does not include lease termination agreements or lease amendments related to tenant bankruptcy proceedings. 27 Renew
Slide 28: Comparable Leasing Summary
© CTO Realty Growth, Inc. | ctoreit.com Comparable Leasing Summary $ and square feet in thousands, except per square foot data. Any differences are a result of rounding. Comparable leases compare leases signed on a space for which there was previously a tenant. 28 Renewals and Extensions - Comparabl
Slide 29: Same-Property NOI
© CTO Realty Growth, Inc. | ctoreit.com Same-Property NOI $ and square feet in thousands, except per square foot data. Any differences are a result of rounding. 29 Multi-Tenant Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Number of Comparable Properties 11 11 12 11 Same-Property NOI – 2023 $8,402 $8,703 $8,
Slide 30: Lease Expiration Schedule
© CTO Realty Growth, Inc. | ctoreit.com Lease Expiration Schedule $ and square feet in thousands, except per square foot data. Any differences are a result of rounding. 30 Anchor Tenants Year Leases Expiring Expiring SF % of Total Cash ABR % of Total ABR PSF 2023 0 0 0.0% 0 0.0% $0.00 2024 4 101 2.8
Slide 31: Lease Expiration Schedule
© CTO Realty Growth, Inc. | ctoreit.com Lease Expiration Schedule $ and square feet in thousands, except per square foot data. Any differences are a result of rounding. 31 Total Year Leases Expiring Expiring SF % of Total Cash ABR % of Total ABR PSF 2023 6 16 0.4% 287 0.4% $17.41 2024 51 246 6.7% 4,
Slide 32: Top Tenant Summary
© CTO Realty Growth, Inc. | ctoreit.com Top Tenant Summary 32 Tenant/Concept Credit Rating(1) Leases Leased Square Feet % of Total Cash ABR % of Total Fidelity A+ 1 210 5.1% 3,619 4.7% Ford Motor Credit BB+ 1 121 2.9% 2,333 3.0% AMC CCC+ 2 90 2.2% 2,189 2.8% Best Buy BBB+ 3 112 2.7% 1,749 2.3% South
Slide 33: Geographic Diversification
© CTO Realty Growth, Inc. | ctoreit.com Geographic Diversification 33 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 27% $25,229 33% $157,217 221,616 1.0%
Slide 34: Other Assets
© CTO Realty Growth, Inc. | ctoreit.com Other Assets $ and shares outstanding in thousands, except per share data. Any differences are a result of rounding. 34 Investment Securities Shares & Operating Partnership Units Owned Value Per Share September 30, 2023 Estimated Value Annualized Dividend Per
Slide 35: 2023 Guidance
© CTO Realty Growth, Inc. | ctoreit.com 2023 Guidance 35 Low High Core FFO Per Diluted Share $1.58 − $1.62 AFFO Per Diluted Share $1.72 − $1.76 The Company’s estimated Core FFO per diluted share and AFFO per diluted share for 2023 is as follows: $ and shares outstanding in millions, except per share
Slide 36: Contact Information & Research Coverage
© CTO Realty Growth, Inc. | ctoreit.com 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 32114 M
Slide 37: Safe Harbor
© CTO Realty Growth, Inc. | ctoreit.com Safe Harbor 37 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 Ac
Slide 38: Non-GAAP Financial Measures
© CTO Realty Growth, Inc. | ctoreit.com Non-GAAP Financial Measures 38 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 39: Non-GAAP Financial Measures
© CTO Realty Growth, Inc. | ctoreit.com Non-GAAP Financial Measures 39 To derive Same-Property NOI, GAAP net income or loss attributable to the Company is adjusted to exclude extraordinary items (as defined by GAAP), gain or loss on disposition of assets, gain or loss on extinguishment of debt, impa
Slide 40: Definitions & Terms
© CTO Realty Growth, Inc. | ctoreit.com Definitions & Terms 40 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 26, 2023. ▪ All information is as of September 30, 2023, u