Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Q2 2024 Earnings Presentation
41 slides from Cto Realty Growth's earnings presentation, Jul 25, 2024
Slide 1: Supplemental Reporting Information Q2 2024
© CTO Realty Growth, Inc. | ctoreit.com Ashford Lane Atlanta, GA Supplemental Reporting Information Q2 2024
Slide 2: Table of Contents
© CTO Realty Growth, Inc. | ctoreit.com 2 Table of Contents Second Quarter 2024 Earnings Release 4 Key Financial Information Consolidated Balance Sheets 1 4 Consolidated Statements of Operations 1 5 Non -GAAP Financial Measures 1 6 Capitalization & Dividends 1 9 Summary of Debt 20 Debt Maturit
Slide 3: Table of Contents
© CTO Realty Growth, Inc. | ctoreit.com 3 Table of Contents Leasing Summary 28 Comparable Leasing Summary 29 Same-Property NOI 30 Lease Expirations 31 Top Tenant Summary 33 Geographic Diversification 34 Other Assets 35 2024 Guidance 36 Contact Information & Research Coverage 37 Safe Harbor, Non-GAAP
Slide 4: CTO Realty Growth Reports Second Quarter 2024 Operating Results
Page 4 Press Release Contact: Philip R. Mays Senior Vice President, Chief Financial Officer & Treasurer (407) 904-3324 pmays@ctoreit.com FOR IMMEDIATE RELEASE CTO REALTY GROWTH REPORTS SECOND QUARTER 2024 OPERATING RESULTS WINTER PARK, FL – July 25, 2024 – CTO Realty Growth, Inc. (NYSE: CTO) (the “C
Slide 5: CEO Comments and Quarterly Financial Results Highlights
Page 5 CEO Comments “We are pleased that our strong leasing results over the past year are starting to deliver meaningful Same-Property NOI growth, including an increase of 4% for the first half of the year,” said John P. Albright, President and Chief Executive Officer of CTO Realty Growth. “The str
Slide 6: Year-to-Date Financial Results Highlights
Page 6 Year-to-Date Financial Results Highlights The table below provides a summary of the Company’s operating results for the six months ended June 30, 2024: Six Months Ended (in thousands, except per share data) June 30, 2024 June 30, 2023 Variance to Comparable Period in the Prior Year Net Income
Slide 7: Portfolio Summary and Same Property Net Operating Income
Page 7 Portfolio Summary The Company’s income property portfolio consisted of the following as of June 30, 2024: Wtd. Avg. Remaining Asset Type # of Properties Square Feet Lease Term Single Tenant 6 252 5.7 years Multi-Tenant 14 3,643 5.0 years Total / Wtd. Avg. 20 3,895 4.9 years Square Feet in tho
Slide 8: Leasing Activity
Page 8 Leasing Activity During the quarter ended June 30, 2024, the Company signed 16 leases totaling 78,593 square feet. On a comparable basis, which excludes vacancy existing at the time of acquisition, CTO signed 11 leases totaling 57,878 square feet at an average cash base rent of $23.34 per squ
Slide 9: Summary of Long-Term Debt
Page 9 The following table provides a summary of the Company’s long-term debt, as of June 30, 2024: Component of Long-Term Debt Principal Maturity Date Interest Rate Wtd. Avg. Rate as of June 30, 2024 2025 Convertible Senior Notes $ 51.0 million April 2025 3.875% 3.88% 2026 Term Loan (1) 65.0 millio
Slide 10: 2024 Outlook
Page 10 2024 Outlook The Company has increased its Core FFO and AFFO outlook for 2024 and has revised certain assumptions to take into account the Company’s year-to-date performance and revised expectations regarding the Company’s acquisition activities. The Company’s outlook for 2024 assumes contin
Slide 11: About CTO Realty Growth, Inc. and Safe Harbor
Page 11 About CTO Realty Growth, Inc. CTO Realty Growth, Inc. is a publicly traded real estate investment trust that owns and operates a portfolio of high-quality, retail-based properties located primarily in higher growth markets in the United States. CTO also externally manages and owns a meaningf
Slide 12: Non-GAAP Measures Discussion
Page 12 FFO, Core FFO, AFFO, Pro Forma EBITDA, and Same-Property NOI do not represent cash generated from operating activities and are not necessarily indicative of cash available to fund cash requirements; accordingly, they should not be considered alternatives to net income as a performance measur
Slide 13: Non-GAAP Measures Discussion (continued)
Page 13 the leases pertaining to the Company’s assets that are presented as commercial loans and investments in accordance with GAAP is also used in lieu of the interest income equivalent. FFO is used by management, investors and analysts to facilitate meaningful comparisons of operating performance
Slide 14: Consolidated Balance Sheets
Page 14 CTO Realty Growth, Inc. Consolidated Balance Sheets (In thousands, except share and per share data) As of (Unaudited) June 30, 2024 December 31, 2023 ASSETS Real Estate: Land, at Cost $ 236,207 $ 222,232 Building and Improvements, at Cost 601,584 559,389 Other Furnishings and Equipment, at C
Slide 15: Consolidated Statements of Operations
Page 15 CTO Realty Growth, Inc. Consolidated Statements of Operations (Unaudited) (In thousands, except share, per share and dividend data) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 Revenues Income Properties $ 25,878 $ 22,758 $ 50,501 $ 45,190 Manag
Slide 16: Same-Property NOI Reconciliation
Page 16 CTO Realty Growth, Inc. Non-GAAP Financial Measures Same-Property NOI Reconciliation (Unaudited) (In thousands) Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Net Income (Loss) Attributable to the Company $ 1,183 $ 1,800 $ 7,025 $ (4,193) Gain on
Slide 17: FFO, Core FFO, and AFFO Reconciliation
Page 17 CTO Realty Growth, Inc. Non-GAAP Financial Measures Funds from Operations, Core Funds from Operations, and Adjusted Funds from Operations Attributable to Common Stockholders (Unaudited) (In thousands, except per share data) Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June
Slide 18: Reconciliation of Net Debt to Pro Forma EBITDA
Page 18 CTO Realty Growth, Inc. Non-GAAP Financial Measures Reconciliation of Net Debt to Pro Forma EBITDA (Unaudited) (In thousands) Three Months Ended June 30, 2024 Net Income Attributable to the Company $ 1,183 Depreciation and Amortization of Real Estate 11,532 Gain on Disposition of Other Asset
Slide 19: Capitalization & Dividends
© CTO Realty Growth, Inc. | ctoreit.com 19 Capitalization & Dividends Equity Capitalization Common Shares Outstanding 23,115 Common Share Price $17.46 Total Common Equity Market Capitalization $403,590 Series A Preferred Shares Outstanding 4,697 Series A Preferred Par Value Per Share $25.00 Series A
Slide 20: Debt Summary
© CTO Realty Growth, Inc. | ctoreit.com 20 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 Second Quarter 2024 Earnings Release. Indebtedness Outstanding Face Value Interest Rate Maturity Date Type 2
Slide 21: Debt Maturities
© CTO Realty Growth, Inc. | ctoreit.com 21 Debt Maturities Year Outstanding % of Debt Maturing Cumulative % of Debt Maturing Weighted Average Rate 2024 $ − − % − % − % 2025 51,034 11% 11% 3.88% 2026 82,800 17% 28% 3.13% 2027 250,000 51% 79% 4.22% 2028 100,000 21% 100% 5.33% Total $483,834 100% 4.23%
Slide 22: Year-to-Date Investments
© CTO Realty Growth, Inc. | ctoreit.com 22 Year-to-Date Investments Property Acquisitions Market Type Date Acquired Square Feet Price Occupancy At Acquisition Phase II of The Exchange at Gwinnett (5 of 5 parcels) Buford, GA Atlanta, GA Multi-Tenant Retail February 2024 4,000 $2,272 100% Marketplace
Slide 23: Year-to-Date Dispositions
© CTO Realty Growth, Inc. | ctoreit.com 23 Year-to-Date Dispositions Property Market Type Date Sold Square Feet Price Gain 125 Lincoln & 150 Washington Santa Fe, NM Santa Fe Mixed Use March 2024 136,240 $19,977 $4,618 Total Dispositions 136,240 $19,977 $4,618 $ in thousands. Any differences are a re
Slide 24: Real Estate Portfolio Capital Investments
© CTO Realty Growth, Inc. | ctoreit.com 24 Real Estate Portfolio Capital Investments Investment in Previously Occupied Space Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Capital Expenditures $ − $54 $54 Tenant Improvement Allowances 48 529 577 Leasing Commissions 541 89 630 Total Investment in Previously Oc
Slide 25: Real Estate Portfolio Summary
© CTO Realty Growth, Inc. | ctoreit.com 25 Real Estate Portfolio Summary Total Portfolio as of June 30, 2024 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 3,643 $20.19 92.1% 94.2% Total Portfolio 20 3,895
Slide 26: Real Estate Portfolio Detail
© CTO Realty Growth, Inc. | ctoreit.com 26 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 69.5 560,665 86% 87% $20.26 Ashford Lane Lifestyle
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 Albuquerque, NM Fidelity Single Tenant Office 2018 2009 25.3 210,067 100% 100% $17.49 Houston, TX Price Plaza
Slide 28: Leasing Summary
© CTO Realty Growth, Inc. | ctoreit.com 28 Leasing Summary Renewals and Extensions Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Leases 10 7 17 Square Feet 34 48 82 New Cash Rent PSF $29.26 $21.06 $24.48 Tenant Improvements $15 $10 $25 Leasing Commissions $40 $57 $98 Weighted Average Term 3.8 years 4.0 years
Slide 29: Comparable Leasing Summary
© CTO Realty Growth, Inc. | ctoreit.com 29 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 2024 10 3
Slide 30: Same-Property NOI
© CTO Realty Growth, Inc. | ctoreit.com 30 Same-Property NOI Multi-Tenant Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Number of Comparable Properties 12 12 12 Same-Property NOI – 2024 $13,966 $13,587 $27,554 Same-Property NOI – 2023 $13,305 $13,391 $26,696 $ Variance $661 $196 $858 % Variance 5.0% 1.5% 3.2
Slide 31: Lease Expiration Schedule
© CTO Realty Growth, Inc. | ctoreit.com 31 Lease Expiration Schedule Anchor Tenants Year Leases Expiring Expiring SF % of Total Cash ABR % of Total Cash ABR PSF 2024 3 76 2.1% $579 0.7% $7.57 2025 6 113 3.1% 2,481 3.1% $21.86 2026 8 266 7.4% 4,883 6.2% $18.37 2027 11 413 11.4% 4,379 5.5% $10.61 2028
Slide 32: Lease Expiration Schedule Total
© CTO Realty Growth, Inc. | ctoreit.com 32 Lease Expiration Schedule Total Year Leases Expiring Expiring SF % of Total Cash ABR % of Total Cash ABR PSF 2024 20 131 3.6% $1,999 2.5% $15.32 2025 40 221 6.1% 5,909 7.5% $26.76 2026 60 456 12.6% 10,415 13.2% $22.83 2027 71 593 16.4% 9,781 12.4% $16.49 20
Slide 33: Top Tenant Summary
© CTO Realty Growth, Inc. | ctoreit.com 33 Top Tenant Summary Tenant/Concept Credit Rating1 Leases2 Leased Square Feet2 % of Total Cash ABR % of Total Fidelity A+ / A3 1 218 5.6% $3,674 4.6% AMC CCC+ / Caa2 2 90 2.3% 2,189 2.8% Best Buy BBB+ / A3 3 112 2.9% 1,749 2.2% Whole Foods Market AA- / A1 1 6
Slide 34: Geographic Diversification
© CTO Realty Growth, Inc. | ctoreit.com 34 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 1,098 28% $27,723 35% $157,418 220,272 1.0%
Slide 35: Other Assets
© CTO Realty Growth, Inc. | ctoreit.com 35 Other Assets Investment Securities Shares & Operating Partnership Units Owned Value Per Share June 30, 2024 Estimated Value Annualized Dividend Per Share In-Place Annualized Dividend Income Alpine Income Property Trust 2,350 $15.56 $36,561 $1.10 $2,585 Stru
Slide 36: 2024 Guidance
© CTO Realty Growth, Inc. | ctoreit.com 36 2024 Guidance Low High Core FFO Per Diluted Share $1.81 − $1.86 AFFO Per Diluted Share $1.95 − $2.00 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 37: Contact Information & Research Coverage
© CTO Realty Growth, Inc. | ctoreit.com 37 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 38: Safe Harbor
© CTO Realty Growth, Inc. | ctoreit.com 38 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 39: Non-GAAP Financial Measures
© CTO Realty Growth, Inc. | ctoreit.com 39 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 40: Non-GAAP Financial Measures (Continued)
© CTO Realty Growth, Inc. | ctoreit.com 40 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 41: Definitions & Terms
© CTO Realty Growth, Inc. | ctoreit.com 41 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 July 25, 2024. All information is as of June 30, 2024, unless otherwi