Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Q3 2022 Earnings Presentation
35 slides from Cto Realty Growth's earnings presentation, Oct 27, 2022
Slide 1: Investor Presentation October 2022
Investor Presentation REALTY GROWTH October 2022 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 Sunbelt Retail & Mixed - Use Multi - tenant portfolio in attractive business - friendly markets with strong demographics and outsized long - term g
Slide 3: Company Profile
© CTO Realty Growth, Inc. | ctoreit.com Company Profile 3 As of October 26, 2022, unless otherwise noted. (1) Based on $20.01 per share common stock price as of October 26, 2022. The Exchange at Gwinnet Buford, GA 19 3.1M 8.0% PROPERTIES SQUARE FEET IMPLIED CAP RATE 8.4% IMPLIED INVESTMENT YIELD 93%
Slide 4: NAV Components
© CTO Realty Growth, Inc. | ctoreit.com NAV Components 4 Net Operating Income of Income Property Portfolio (1) $60.5 $60.5 $60.5 $60.5 $60.5 ÷ Capitalization Rate 6.50% 6.75% 7.00% 7.25% 7.50% Income Portfolio Value $931.3 $896.8 $864.8 $835.0 $807.1 Other Assets: + Estimated Value for Subsurface In
Slide 5: Year-To-Date Highlights
© CTO Realty Growth, Inc. | ctoreit.com Year - To - Date Highlights 5 Accretive and Opportunistic Investment Activity ▪ Acquired three multi - tenant retail and mixed - used properties (Price Plaza - Houston, TX, Madison Yards – Atlanta, GA, and West Broad Village – Richmond, VA) at a weighted - ave
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 re
Slide 7: Peer Comparisons
© CTO Realty Growth, Inc. | ctoreit.com Peer Comparisons 15.0x 12.7x 11.8x 11.4x 11.4x 10.8x 10.2x 10.0x 9.9x 8.8x 8.6x 4.5% 4.3% 4.6% 4.6% 7.6% 5.3% 4.3% 4.7% 4.5% 5.3% 5.8% 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 KIM AAT UE CTO AKR SITC BRX KRG W
Slide 8: 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 9: Meaningful Progress with Portfolio Repositioning
© CTO Realty Growth, Inc. | ctoreit.com Meaningful Progress with Portfolio Repositioning 9 $365 $489 $374 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 Inves
Slide 10: 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. 10 Stable Cash
Slide 11: Recent Acquisition – West Broad Village, Glen Allen, VA
© CTO Realty Growth, Inc. | ctoreit.com Recent Acquisition – West Broad Village, Glen Allen, VA 11 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 ancho
Slide 12: Recent Acquisition – Madison Yards, Atlanta, GA
© CTO Realty Growth, Inc. | ctoreit.com Recent Acquisition – Madison Yards, Atlanta, GA 12 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 P
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 1% 5% 4% 6% 15% 10% 18% 9% 6% 5% 6% 15% 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 (1) % of ABR Expiring Leases
Slide 15: Repositioning – Ashford Lane, Atlanta, GA
© CTO Realty Growth, Inc. | ctoreit.com Repositioning – Ashford Lane, Atlanta, GA 15 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 16: Repositioning – Ashford Lane, Atlanta, GA
© CTO Realty Growth, Inc. | ctoreit.com Repositioning – Ashford Lane, Atlanta, GA 16 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 17: Repositioning – Lincoln & Washington, Santa Fe, NM
© CTO Realty Growth, Inc. | ctoreit.com Repositioning – 125 Lincoln & 150 Washington, Santa Fe, NM 17 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 parking in th
Slide 18: Consistent Dividend Growth
© CTO Realty Growth, Inc. | ctoreit.com Consistent Dividend Growth 18 $0.01 $0.01 $0.02 $0.02 $0.02 $0.03 $0.05 $0.07 $0.12 $0.91 $1.33 $1.48 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (1) Implied 2022 dividend calculated as the paid Q1, Q2 and Q3 2022 dividends of $0.36, 0.37 and 0
Slide 19: 2022 Guidance
© CTO Realty Growth, Inc. | ctoreit.com 2022 Guidance 19 $ and shares outstanding in millions, except per share data. As of October 27, 2022, unless otherwise noted. CTO has provided guidance indicating as much as 55% year - over - year Core FFO per share growth in 2022. Low High Investments $271 mi
Slide 20: Balance Sheet
© CTO Realty Growth, Inc. | ctoreit.com Balance Sheet 20 $51 $83 $100 $139 2022 2023 2024 2025 2026 2027 2028 2029 2030 Unsecured Secured Revolving Credit Facility As of September 30, 2022. $ and shares outstanding in millions. (1) Reflects $38.5 million outstanding under the Company’s $300 million
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: Key Takeaways
© CTO Realty Growth, Inc. | ctoreit.com Key Takeaways 24 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 CT
Slide 25: Appendix
NYSE: CTO Appendix The Shops at Legacy Plano, TX
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 West Broad Village – Glen Allen, VA Richmond, VA Multi - Tenant Mixed Use 392,007 83% 83% 13% The Shops at Legacy – Plano, TX Dallas,
Slide 27: Schedule of Properties
© CTO Realty Growth, Inc. | ctoreit.com Schedule of Properties 27 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 28: Forward Looking Statements & Non-GAAP Financial Measures
© CTO Realty Growth, Inc. | ctoreit.com Forward Looking Statements & Non - GAAP Financial Measures 28 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 29: Non-GAAP Financial Measures
© CTO Realty Growth, Inc. | ctoreit.com Non - GAAP Financial Measures 29 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 30: References & Contacts
© CTO Realty Growth, Inc. | ctoreit.com References & Contacts 30 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 27 , 2022 .. ▪ All information is as of September 30
Slide 31: Consolidated Statements of Operations
© CTO Realty Growth, Inc. | ctoreit.com Consolidated Statements of Operations 31 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, 2022 September 30, 2021 September 30,
Slide 32: Same-Property NOI
© CTO Realty Growth, Inc. | ctoreit.com Same - Property NOI 32 Three Months Ended September 30, 2022 September 30, 2021 Net Income Attributable to the Company $ 4,817 $ 23,947 Gain on Disposition of Assets (4,973) (22,666) Depreciation and Amortization per Income Statement 7,305 5,567 Amortization o
Slide 33: Non-GAAP Financial Measures
© CTO Realty Growth, Inc. | ctoreit.com Non - GAAP Financial Measures 33 Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Net Income Attributable to the Company $ 4,817 $ 23,947 $ 6,237 $ 28,008 Add Back: Effect of Dilutive Interest Rel
Slide 34: Net Debt to Pro Forma EBITDA
© CTO Realty Growth, Inc. | ctoreit.com Net Debt to Pro Forma EBITDA 34 CTO Realty Growth, Inc. Reconciliation of Net Debt to Pro Forma EBITDA (Unaudited, in thousands) Three Months Ended September 30, 2022 Net Income Attributable to the Company $ 4,817 Depreciation and Amortization 7,283 Gain on Di
Slide 35: Realty Growth
REALTY GROWTH The Strand at St. John’s Town Center Jacksonville, FL