Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Investor Presentation (February 2023)
37 slides from Cto Realty Growth's investor presentation, Feb 23, 2023
Slide 1: Investor Presentation February 2023
Investor Presentation REALTY GROWTH February 2023 West Broad Village Glen Allen, VA
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 February 23, 2023, unless otherwise noted. 1. As of February 23, 2023. 2. Based on $18.69 per share common stock price as of February 22, 2023. The Exchange at Gwinnet Buford, GA 23 3.7M 7.7% PROPERTIES SQUARE FEET IMPLIED CAP RATE 8.1%
Slide 4: 2022 Highlights
© CTO Realty Growth, Inc. | ctoreit.com 2022 Highlights 4 Accretive and Opportunistic Investment Activity ▪ Invested a record $314.0 million into mixed-use or retail property acquisitions concentrated in Atlanta, Dallas, Richmond and Houston at a weighted-average going-in cash cap rate of 7.5% ▪ Sol
Slide 5: Peer Comparisons
© CTO Realty Growth, Inc. | ctoreit.com Peer Comparisons 16.4x 13.3x 13.0x 12.3x 11.9x 11.7x 11.2x 11.1x 11.0x 10.4x 9.7x 4.1% 4.2% 4.5% 8.1% 5.0% 3.9% 4.5% 4.6% 5.0% 5.4% 4.9% 3.50% 4.50% 5.50% 6.50% 7.50% 8.50% 8.0x 9.0x 10.0x 11.0x 12.0x 13.0x 14.0x 15.0x 16.0x FRT UE KIM CTO AKR SITC KRG BRX AAT
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: Accelerating Investment Performance
© CTO Realty Growth, Inc. | ctoreit.com Accelerating Investment Performance 8 $365 $489 $468 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 400.0 450.0 500.0 0.0% 10000.0% 20000.0% 30000.0% 40000.0% 50000.0% 2020 2021 2022 Monetization of Non-Income Producing Legacy Assets Dispositions Investments Inv
Slide 9: Evolution into a Leading Multi-Tenant, Retail-Focused Portfolio
© CTO Realty Growth, Inc. | ctoreit.com Evolution into a Leading Multi-Tenant, Retail-Focused Portfolio 9 20191 Number of Properties 34 27 22 23 Total Portfolio Square Feet 1.8M 2.5M 2.7M 3.7M Occupancy 95% 93% 89% 90% Annualized Cash Base Rent (Cash ABR) $27.6M $38.2M $49.6M $72.6M % of Cash ABR fr
Slide 10: Strong Demographic Portfolio
© CTO Realty Growth, Inc. | ctoreit.com Strong Demographic Portfolio 10 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 & P
Slide 11: Durable Portfolio with Growth Opportunities
© CTO Realty Growth, Inc. | ctoreit.com 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. 11 Repositioning Upsi
Slide 12: Recent Acquisition – The Collection at Forsyth, Cumming, GA
© CTO Realty Growth, Inc. | ctoreit.com Recent Acquisition – The Collection at Forsyth, Cumming, GA 12 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 13: Recent Acquisition – West Broad Village, Glen Allen, VA
© CTO Realty Growth, Inc. | ctoreit.com Recent Acquisition – West Broad Village, Glen Allen, VA 13 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 14: Recent Acquisition – Madison Yards, Atlanta, GA
© CTO Realty Growth, Inc. | ctoreit.com Recent Acquisition – Madison Yards, Atlanta, GA 14 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 15: Meaningful Property Cash Flow & Leasing Momentum
© CTO Realty Growth, Inc. | ctoreit.com Meaningful Property Cash Flow & Leasing Momentum 15 8% 7% 8% 16% 11% 18% 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 in
Slide 16: Repositioning – Ashford Lane, Atlanta, GA
© CTO Realty Growth, Inc. | ctoreit.com Repositioning – Ashford Lane, Atlanta, GA 16 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 17: Repositioning – Ashford Lane, Atlanta, GA
© CTO Realty Growth, Inc. | ctoreit.com Repositioning – Ashford Lane, Atlanta, GA 17 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 tenant
Slide 18: Repositioning – Lincoln & Washington, Santa Fe, NM
© CTO Realty Growth, Inc. | ctoreit.com Repositioning – 125 Lincoln & 150 Washington, Santa Fe, NM 18 Signed a 9,200 square foot lease with the Rosewood Inn of Anasazi operator who will create four high-end suites on the 4th floor ▪ Two-building property with dedicated underground parking in the hea
Slide 19: Consistent Dividend Growth
© CTO Realty Growth, Inc. | ctoreit.com Consistent Dividend Growth 19 $0.01 $0.01 $0.02 $0.02 $0.02 $0.03 $0.05 $0.07 $0.12 $0.91 $1.33 $1.49 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 ▪ 46 consecutive years of paying a common dividend ▪ Under current management (beginning in 2011),
Slide 20: 2023 Guidance
© CTO Realty Growth, Inc. | ctoreit.com 2023 Guidance 20 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 21: Balance Sheet
© CTO Realty Growth, Inc. | ctoreit.com Balance Sheet 21 $51 $83 $100 $214 2023 2024 2025 2026 2027 2028 2029 2030 Unsecured Secured Revolving Credit Facility As of December 31, 2022, unless otherwise noted. $ and shares outstanding in millions. 1. Reflects $113.8 million outstanding under the Compa
Slide 22: 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. 22 John P. Albright President & Chief Executive Officer ▪ Former Co-H
Slide 23: Board of Directors
© CTO Realty Growth, Inc. | ctoreit.com Board of Directors 23 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 24: 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. 24 Social Responsibility Inclusive and Supportive Company Culture ▪ Dedicated to an inclusive
Slide 25: ESG – Environmental Responsibility
© CTO Realty Growth, Inc. | ctoreit.com ESG – Environmental Responsibility 25 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 26: Key Takeaways
© CTO Realty Growth, Inc. | ctoreit.com Key Takeaways 26 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 has
Slide 27: Appendix
NYSE: CTO Appendix The Shops at Legacy Plano, TX
Slide 28: Schedule of Properties
© CTO Realty Growth, Inc. | ctoreit.com Schedule of Properties 28 Property Market Asset Type Property Type Square Feet Occupancy Leased Occupancy % of ABR The Collection at Forsyth Cumming, GA Atlanta, GA Mixed-Use Lifestyle 560,434 86% 87% 14% West Broad Village Glen Allen, VA Richmond, VA Mixed-Us
Slide 29: Schedule of Properties
© CTO Realty Growth, Inc. | ctoreit.com Schedule of Properties 29 Property Market Asset Type Property Type Square Feet Occupancy Leased Occupancy % of ABR The Exchange at Gwinnett Buford, GA Atlanta, GA Retail Grocery-Anchored 69,266 92% 98% 3% Sabal Pavilion Tampa, FL Tampa, FL Office Single Tenant
Slide 30: Forward Looking Statements & Non-GAAP Financial Measures
© CTO Realty Growth, Inc. | ctoreit.com Forward Looking Statements & Non-GAAP Financial Measures 30 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 31: Non-GAAP Financial Measures
© CTO Realty Growth, Inc. | ctoreit.com Non-GAAP Financial Measures 31 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 32: References & Contacts
© CTO Realty Growth, Inc. | ctoreit.com References & Contacts 32 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 February 23, 2023. ▪ All information is as of December 31, 2022,
Slide 33: Consolidated Statements of Operations
© CTO Realty Growth, Inc. | ctoreit.com Consolidated Statements of Operations 33 CTO Realty Growth, Inc. Consolidated Statements of Operations (Unaudited, in thousands, except share, per share and dividend data) Three Months Ended Year Ended December 31, 2022 December 31, 2021 December 31, 2022 Dece
Slide 34: Same-Property NOI
© CTO Realty Growth, Inc. | ctoreit.com Same-Property NOI 34 CTO Realty Growth, Inc. Same-Property NOI Reconciliation (Unaudited, in thousands) Three Months Ended Year Ended December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Net Income (Loss) Attributable to the Company $ (3,079
Slide 35: Non-GAAP Financial Measures
© CTO Realty Growth, Inc. | ctoreit.com Non-GAAP Financial Measures 35 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 36: Net Debt to Pro Forma EBITDA
© CTO Realty Growth, Inc. | ctoreit.com Net Debt to Pro Forma EBITDA 36 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 acquisition and disposition activity during the t
Slide 37: CTO Realty Growth
REALTY GROWTH The Strand at St. John’s Town Center Jacksonville, FL
CTO Realty Growth — Investor Presentation (February 2023) on 6ix