Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Q4 2022 Earnings Presentation
41 slides from Cto Realty Growth's earnings presentation, Feb 23, 2023
Slide 1: Supplemental Reporting Information Q4 2022
© CTO Realty Growth, Inc. | ctoreit.com REALTY GROWTH Supplemental Reporting Information Q4 2022 Madison Yards Atlanta, GA
Slide 2: Table of Contents
© CTO Realty Growth, Inc. | ctoreit.com Full Year and Fourth Quarter 2022 Earnings Release 4 Key Financial Information ▪ Consolidated Balance Sheets 14 ▪ Consolidated Statements of Operations 15 ▪ Non-GAAP Financial Measures 16 Capitalization & Dividends 19 Summary of Debt 20 Debt Maturities 21 Inve
Slide 3: Table of Contents
© CTO Realty Growth, Inc. | ctoreit.com Top Tenant Summary 33 Geographic Diversification 34 Other Assets 35 2023 Guidance 36 Contact Information & Research Coverage 37 Safe Harbor, Non-GAAP Financial Measures, and Definitions and Terms 38 Table of Contents
Slide 4: Full Year and Fourth Quarter 2022 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 FULL YEAR AND FOURTH QUARTER 2022 OPERATING RESULTS WINTER PARK, F
Slide 5: Fourth Quarter 2022 Highlights
© CTO Realty Growth, Inc. | ctoreit.com 5 ▪ Reported AFFO per diluted share attributable to common stockholders of $0.37 for the quarter ended December 31, 2022. ▪ Completed three mixed-use or retail property acquisitions totaling 1.0 million square feet for a gross value of $194.7 million at a weig
Slide 6: Quarterly Financial Results Highlights
© CTO Realty Growth, Inc. | ctoreit.com 6 (1) The denominator for this measure in 2022 excludes the impact of 3.1 million shares related to the Company’s adoption of ASU 2020-06, effective January 1, 2022, which requires presentation on an if-converted basis for its 2025 Convertible Senior Notes, as
Slide 7: Acquisitions and Investment Activity
© CTO Realty Growth, Inc. | ctoreit.com 7 ▪ square feet of complementary office and includes a combination of national and local tenants spanning the grocery, food & beverage, entertainment, education, home décor, childcare and medical sectors. ▪ Purchased The Collection at Forsyth, a 560,000 square
Slide 8: Same-Property NOI and Leasing Activity
© CTO Realty Growth, Inc. | ctoreit.com 8 Year Ended December 31, 2022 Year Ended December 31, 2021 Variance to Comparable Period in the Prior Year Single Tenant $ 8,557 $ 8,238 $ 319 3.9% Multi-Tenant 14,300 11,988 2,312 19.3% Total $ 22,857 $ 20,226 $ 2,631 13.0% In thousands. The Company’s Same-P
Slide 9: Subsurface Interests and Mitigation Credits
© CTO Realty Growth, Inc. | ctoreit.com 9 Subsurface Interests and Mitigation Credits During the year ended December 31, 2022, the Company sold approximately 14,600 acres of subsurface oil, gas and mineral rights for $1.7 million, resulting in aggregate gains of $1.6 million. As of December 31, 2022
Slide 10: Capital Markets, Liquidity and Dividends
© CTO Realty Growth, Inc. | ctoreit.com 10 As of December 31, 2022, the Company’s net debt to Pro Forma EBITDA was 7.3 times, and as defined in the Company’s credit agreement, the Company’s fixed charge coverage ratio was 3.4 times. As of December 31, 2022, the Company’s net debt to total enterprise
Slide 11: Earnings Conference Call & Webcast
© CTO Realty Growth, Inc. | ctoreit.com 11 Earnings Conference Call & Webcast The Company will host a conference call to present its operating results for the quarter and year ended December 31, 2022 on Friday, February 24, 2023, at 9:00 AM ET. A live webcast of the call will be available on the Inv
Slide 12: Forward-Looking Statements and Non-GAAP Measures
© CTO Realty Growth, Inc. | ctoreit.com 12 There can be no assurance that future developments will be in accordance with management’s expectations or that the effect of future developments on the Company will be those anticipated by management. Readers are cautioned not to place undue reliance on th
Slide 13: Non-GAAP Financial Measures Definitions
© CTO Realty Growth, Inc. | ctoreit.com 13 intangibles, straight-line rental revenue, and other non-cash income or expense. Interest expense, general and administrative expenses, investment and other income or loss, income tax benefit or expense, real estate operations revenues and direct cost of re
Slide 14: Consolidated Balance Sheets
© CTO Realty Growth, Inc. | ctoreit.com 14 Consolidated Balance Sheet CTO Realty Growth, Inc. Consolidated Balance Sheets (In thousands, except share and per share data) As of December 31, 2022 December 31, 2021 ASSETS Real Estate: Land, at Cost $ 233,930 $ 189,589 Building and Improvements, at Cost
Slide 15: Consolidated Statements of Operations
© CTO Realty Growth, Inc. | ctoreit.com 15 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, 2022 2021 2022 2021 Revenu
Slide 16: Same-Property NOI Reconciliation
© CTO Realty Growth, Inc. | ctoreit.com 16 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, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Net Income (Los
Slide 17: Non-GAAP Financial Measures
© CTO Realty Growth, Inc. | ctoreit.com 17 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, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Net Income (Loss) Attribu
Slide 18: Reconciliation of Net Debt to Pro Forma EBITDA
© CTO Realty Growth, Inc. | ctoreit.com 18 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, 2022 Net Loss Attributable to the Company $ (3,079) Depreciation and Am
Slide 19: 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 22,855 Common Share Price $18.28 Total Common Equity Market Capitalization $417,7
Slide 20: 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 Fourth Quarter 2022 Earnings Release. Indebtedness Outstanding Face Value Interest Rate Maturity Date Type Rev
Slide 21: 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 11.40% 11.40% 3.88% 2026 82,800 18.50% 29.90%
Slide 22: 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. Price Plaza Shopping Center – Katy, TX Houston, TX Multi-Tenant Retail March 2022 200,576 $39
Slide 23: Year-to-Date Dispositions
© CTO Realty Growth, Inc. | ctoreit.com Property Market Type Date Sold Square Feet Price Gain (Loss) Party City – Oceanside, NY New York, NY Single Tenant Retail January 2022 15,500 $6,949 ($60) The Carpenter Hotel – Austin, TX Austin, TX Hospitality Ground Lease March 2022 73,508 $17,095 ($178) Wes
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 December 31, 2022 Asset Type Number of Properties Square Feet Cash ABR PSF Occupancy Leased Occupancy Single Tenan
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 58.9 560,434 86% 87% $18.36 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: Portfolio Detail
© CTO Realty Growth, Inc. | ctoreit.com Portfolio Detail 27 Property Type Year Acquired/ Developed Year Built Acreage Square Feet In-Place Occupancy Leased Occupancy Cash ABR PSF Daytona Beach, FL Daytona Beach Restaurant Portfolio Single Tenant (5) 2018 / 2022 1915 - 2018 8.3 40,555 100% 100% $26.2
Slide 28: 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. 28 Renewals and Extensions Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 Leases 8 5 9 9 31 Square Feet 32.5 10.2 31.8 20.9 95.3 New Cash Rent PSF $31.
Slide 29: Comparable Leasing Summary
© CTO Realty Growth, Inc. | ctoreit.com Comparable Leasing Summary $ and square feet in thousands. Any differences are a result of rounding. 29 Renewals and Extensions - Comparable Number of Leases Signed GLA Signed New Cash Rent PSF Expiring Cash Rent PSF % Increase Over Expiring Rent Weighted Aver
Slide 30: 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. 30 Multi-Tenant Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 Number of Comparable Properties 6 8 7 7 4 Same-Property NOI – 2022 $4,404 $5,256 $6,54
Slide 31: Lease Expiration Schedule
© CTO Realty Growth, Inc. | ctoreit.com Lease Expiration Schedule $ and square feet in thousands. Any differences are a result of rounding. 31 Anchor Tenants Year Leases Expiring Expiring SF % of Total Cash ABR % of Total ABR PSF 2023 6 169 5.0% 3,649 5.0% $20.28 2024 2 40 1.2% 685 0.9% 17.10 2025 6
Slide 32: Lease Expiration Schedule
© CTO Realty Growth, Inc. | ctoreit.com Lease Expiration Schedule $ and square feet in thousands. Any differences are a result of rounding. 32 Total Year Leases Expiring Expiring SF % of Total Cash ABR % of Total ABR PSF 2023 39 279 8.3% 6,091 8.4% $21.84 2024 53 204 6.1% 4,943 6.8% 24.24 2025 33 20
Slide 33: Top Tenant Summary
© CTO Realty Growth, Inc. | ctoreit.com Top Tenant Summary 33 Tenant/Concept Credit Rating(1) Leases Leased Square Feet % of Total Cash ABR % of Total Fidelity A+ 1 210 5.6% 3,619 5.0% Ford Motor Credit BB+ 1 121 3.2% 2,265 3.1% AMC CCC+ 2 90 2.4% 2,189 3.0% WeWork CCC+ 1 59 1.6% 1,977 2.7% General
Slide 34: Geographic Diversification
© CTO Realty Growth, Inc. | ctoreit.com Geographic Diversification 34 Markets Properties Square Feet % of Total Cash ABR % of Total 5-Mile 2022 Average Household Income 5-Mile 2022 Total Population 2022-2027 Projected Population Annual Growth Atlanta, GA 4 1,070 28.8% $23,677 32.6% $156,077 223,583
Slide 35: 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. 35 Investment Securities Shares & Operating Partnership Units Owned Value Per Share December 31, 2022 Estimated Value Annualized Dividend Per S
Slide 36: 2023 Guidance
© CTO Realty Growth, Inc. | ctoreit.com 2023 Guidance 36 Low High 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: $ and shares outstanding in millions, except per share
Slide 37: 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., 3rd Floor Winter Park, FL 32789 1140 N. Williamson Blvd., Suite 140 Daytona Beach, FL 32114 M
Slide 38: Safe Harbor
© CTO Realty Growth, Inc. | ctoreit.com Safe Harbor 38 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 39: Non-GAAP Financial Measures
© CTO Realty Growth, Inc. | ctoreit.com Non-GAAP Financial Measures 39 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
© CTO Realty Growth, Inc. | ctoreit.com Non-GAAP Financial Measures 40 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 41: Definitions & Terms
© CTO Realty Growth, Inc. | ctoreit.com Definitions & Terms 41 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, u