Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Q2 2022 Earnings Presentation
34 slides from Cto Realty Growth's earnings presentation, Jul 28, 2022
Slide 1: Investor Presentation July 2022
Investor Presentation REALTY GROWTH July 2022 Madison Yards Atlanta, GA
Slide 2: Year-To-Date Highlights
© CTO Realty Growth, Inc. | ctoreit.com Year - To - Date Highlights 2 Accretive and Opportunistic Investment Activity ▪ Total year - to - date investment volume of $177.0 million at a weighted average cap rate of 7.2%, including the following notable i nvestments: o Acquired two multi - tenant retai
Slide 3: Company Profile
© CTO Realty Growth, Inc. | ctoreit.com Company Profile 3 As of July 22, 2022, unless otherwise noted. (1) Based on $21.33 per share common stock price as of July 22, 2022. $40M INVESTMENT IN ALPINE INCOME PROPERTY TRUST $1.70 – $1.76 AFFO PER SHARE GUIDANCE RANGE (STOCK SPLIT ADJUSTED) 22 3.0M 7.
Slide 4: Key Takeaways
© CTO Realty Growth, Inc. | ctoreit.com Key Takeaways 4 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
Slide 5: NAV Components
© CTO Realty Growth, Inc. | ctoreit.com NAV Components 5 Net Operating Income of Income Property Portfolio (1) $52.9 $52.9 $52.9 $52.9 $52.9 ÷ Capitalization Rate 6.00% 6.25% 6.50% 6.75% 7.00% Income Portfolio Value $882.0 $846.8 $814.2 $784.0 $756.0 Other Assets: + Estimated Value for Subsurface In
Slide 6: Recent Acquisition – Madison Yards, Atlanta, GA
© CTO Realty Growth, Inc. | ctoreit.com Recent Acquisition – Madison Yards, Atlanta, GA 6 Recently acquired 162,500 square foot grocery anchored shopping center that has established Atlanta as CTO’s top investment market ▪ Stable, high barrier - to - entry, in - fill location in Atlanta’s Inman Park
Slide 7: Consistent Dividend Growth
© CTO Realty Growth, Inc. | ctoreit.com Consistent Dividend Growth 7 $0.01 $0.01 $0.02 $0.02 $0.02 $0.03 $0.05 $0.07 $0.12 $0.91 $1.33 $1.47 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (1) Implied 2022 dividend calculated as the paid Q1 and Q2 2022 dividends of $1.08 per common share
Slide 8: Peer Comparisons
© CTO Realty Growth, Inc. | ctoreit.com Peer Comparisons 17.1x 13.9x 13.4x 13.4x 13.2x 12.2x 11.4x 10.6x 10.5x 10.2x 10.0x 4.2% 3.7% 4.1% 4.3% 7.0% 3.7% 4.4% 4.5% 4.5% 4.3% 5.0% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% 6.50% 7.00% 7.50% 8.0x 9.0x 10.0x 11.0x 12.0x 13.0x 14.0x 15.0x 16.0x 17.0x 18.0x FRT
Slide 9: Differentiated Investment Strategy
© CTO Realty Growth, Inc. | ctoreit.com Differentiated Investment Strategy 9 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 re
Slide 10: Real Estate and Investment Strategy
© CTO Realty Growth, Inc. | ctoreit.com 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 - t
Slide 11: Meaningful Progress with Portfolio Repositioning
© CTO Realty Growth, Inc. | ctoreit.com Meaningful Progress with Portfolio Repositioning 11 $365 $489 $349 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 Guidance Monetization of Non-Core Legacy Assets Dispositions Inve
Slide 12: 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. 12 Stable Cash
Slide 13: Strong Demographic Portfolio
© CTO Realty Growth, Inc. | ctoreit.com Strong Demographic Portfolio 13 Percentages listed based on Annualized Base Rent. Differences are a result of rounding. (1) Source: Esri; Portfolio average weighted by the Annualized Base Rent of each property. (2) As ranked by Urban Land Institute & PWC in th
Slide 14: Meaningful Property Cash Flow & Leasing Momentum
© CTO Realty Growth, Inc. | ctoreit.com Meaningful Property Cash Flow & Leasing Momentum 14 3% 5% 4% 7% 13% 10% 16% 8% 6% 5% 4% 19% 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 Sig
Slide 15: Repositioning – Ashford Lane, Atlanta, GA
© CTO Realty Growth, Inc. | ctoreit.com Repositioning – Ashford Lane, Atlanta, GA 15 Acquired as Perimeter Place in 2020, with an opportunity to up - tier through targeted lease - up, an improved tenant mix and market repositioning ▪ High barrier - to - entry location with new residential projects,
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)
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 te
Slide 18: Repositioning – Lincoln & Washington, Santa Fe, NM
© CTO Realty Growth, Inc. | ctoreit.com Repositioning – 125 Lincoln & 150 Washington, Santa Fe, NM 18 Recently signed a 9,200 square foot lease with the Rosewood Inn of Anasazi operator who will create four high - end suites on the 4 th floor ▪ Two - building property with dedicated underground park
Slide 19: 2022 Guidance
© CTO Realty Growth, Inc. | ctoreit.com 2022 Guidance 19 $ and shares outstanding in millions, except per share data. As of July 28, 2022, unless otherwise noted. (1) The effect of the Company’s recently announced three - for - one stock split has been accounted for in the Company’s revised guidanc
Slide 20: Balance Sheet
© CTO Realty Growth, Inc. | ctoreit.com Balance Sheet 20 $51 $83 $100 $111 2022 2023 2024 2025 2026 2027 Unsecured Secured Revolving Credit Facility Components of Long - Term Debt Principal Interest Rate Type Revolving Credit Facility 111.0 million 30 - Day LIBOR + [1.35% – 1.95%] Floating 2025 Conv
Slide 21: 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. 21 John P. Albright President & Chief Executive Officer ▪ Former C
Slide 22: 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. 22 Social Responsibility Inclusive and Supportive Company Culture ▪ Dedicated to an inclusive
Slide 23: ESG – Environmental Responsibility
© CTO Realty Growth, Inc. | ctoreit.com ESG – Environmental Responsibility 23 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 24: Appendix
NYSE: CTO Appendix The Shops at Legacy Plano, TX
Slide 25: Schedule of Properties
© CTO Realty Growth, Inc. | ctoreit.com Schedule of Properties 25 Property Market Asset Type Property Type Square Feet In - Place Occupancy Leased Occupancy % of ABR The Shops at Legacy – Plano, TX Dallas, TX Multi - Tenant Mixed Use 237,572 92% 96% 13% Ashford Lane – Atlanta, GA Atlanta, GA Multi -
Slide 26: Schedule of Properties
© CTO Realty Growth, Inc. | ctoreit.com Schedule of Properties 26 Property Market Asset Type Property Type Square Feet In - Place Occupancy Leased Occupancy % of ABR Sabal Pavilion – Tampa, FL Tampa, FL Single Tenant Office 120,500 100% 100% 4% Jordan Landing – West Jordan, UT Salt Lake City, UT Mul
Slide 27: Forward Looking Statements & Non-GAAP Financial Measures
© CTO Realty Growth, Inc. | ctoreit.com Forward Looking Statements & Non - GAAP Financial Measures 27 Forward Looking Statements Certain statements contained in this presentation (other than statements of historical fact) are forward - looking statements within the meaning of Section 27 A of the Sec
Slide 28: Non-GAAP Financial Measures
© CTO Realty Growth, Inc. | ctoreit.com Non - GAAP Financial Measures 28 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
Slide 29: References & Contacts
© CTO Realty Growth, Inc. | ctoreit.com References & Contacts 29 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 July 28 , 2022 .. ▪ All information is as of June 30 , 2022 ,
Slide 30: Consolidated Statements of Operations
© CTO Realty Growth, Inc. | ctoreit.com Consolidated Statements of Operations 30 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, 2022 June 30, 2021 June 30, 2022 June 30, 2
Slide 31: Same-Property NOI
© CTO Realty Growth, Inc. | ctoreit.com Same - Property NOI 31 Three Months Ended June 30, 2022 June 30, 2021 Net Income Attributable to the Company $ 1,218 $ (3,724) (Gain) Loss on Disposition of Assets — (4,732) Loss on Extinguishment of Debt — 641 Impairment Charges — 16,527 Depreciation and Amor
Slide 32: Non-GAAP Financial Measures
© CTO Realty Growth, Inc. | ctoreit.com Non - GAAP Financial Measures 32 Three Months Ended Six Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Net Income Attributable to the Company $ 1,218 $ (3,724) $ 1,420 $ 4,061 Add Back: Effect of Dilutive Interest Related to 2025 Converti
Slide 33: Net Debt to Pro Forma EBITDA
© CTO Realty Growth, Inc. | ctoreit.com Net Debt to Pro Forma EBITDA 33 CTO Realty Growth, Inc. Reconciliation of Net Debt to Pro Forma EBITDA (Unaudited, in thousands) Three Months Ended June 30, 2022 Net Income Attributable to the Company $ 1,218 Depreciation and Amortization 6,707 Gains on the Di
Slide 34: Realty Growth – The Strand at St. John's Town Center
REALTY GROWTH The Strand at St. John’s Town Center Jacksonville, FL