Cto Realty Growth, Inc. · NYSE:CTO
Cto Realty Growth — Q3 2024 Earnings Presentation
42 slides from Cto Realty Growth's earnings presentation, Oct 24, 2024
Slide 1: Supplemental Reporting Information Q3 2024
© CTO Realty Growth, Inc. | ctoreit.com Ashford Lane Atlanta, GA Supplemental Reporting Information Q3 2024
Slide 2: Table of Contents
© CTO Realty Growth, Inc. | ctoreit.com 2 Table of Contents Third Quarter 2024 Earnings Release 4 Key Financial Information Consolidated Balance Sheets 1 5 Consolidated Statements of Operations 1 6 Non -GAAP Financial Measures 1 7 Capitalization & Dividends 20 Summary of Debt 2 1 Debt Maturity
Slide 3: Table of Contents
© CTO Realty Growth, Inc. | ctoreit.com 3 Table of Contents Leasing Summary 29 Comparable Leasing Summary 30 Same-Property NOI 31 Lease Expirations 32 Top Tenant Summary 34 Geographic Diversification 35 Other Assets 36 2024 Guidance 37 Contact Information & Research Coverage 38 Safe Harbor, Non-GAAP
Slide 4: CTO Realty Growth Reports Third Quarter 2024 Operating Results
Page 4 Press Release FOR IMMEDIATE RELEASE CTO REALTY GROWTH REPORTS THIRD QUARTER 2024 OPERATING RESULTS WINTER PARK, FL – October 24, 2024 – CTO Realty Growth, Inc. (NYSE: CTO) (the “Company” or “CTO”) today announced its operating results and earnings for the quarter ended September 30, 2024. Thi
Slide 5: Quarterly Financial Results Highlights
Page 5 Quarterly Financial Results Highlights The table below provides a summary of the Company’s operating results for the three months ended September 30, 2024: Three Months Ended (in thousands, except per share data) September 30, 2024 September 30, 2023 Variance to Comparable Period in the Prior
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 nine months ended September 30, 2024: Nine Months Ended (in thousands, except per share data) September 30, 2024 September 30, 2023 Variance to Comparable Period in the Prio
Slide 7: Investments, Dispositions and Portfolio Summary
Page 7 During the nine months ended September 30, 2024, the Company invested $273.8 million into five retail properties totaling 1.2 million square feet and one vacant land parcel, originated two first mortgage structured investments for $53.8 million, and invested $10.0 million in a preferred equit
Slide 8: Same-Property NOI and Leasing Activity
Page 8 During the nine months ended September 30, 2024, the Company’s Same-Property NOI totaled $44.6 million, an increase of 5.1% over the comparable prior year period, as presented in the following table: Nine Months Ended September 30, 2024 September 30, 2023 Variance to Comparable Period in the
Slide 9: Capital Markets and Balance Sheet
Page 9 Capital Markets and Balance Sheet During the quarter ended September 30, 2024, the Company completed the following notable capital markets activities: Issued 6,851,375 common shares under its common stock ATM offering program at a weighted average gross price of $18.63 per share, for total
Slide 10: Leverage and Dividends
Page 10 As of September 30, 2024, the Company’s net debt to Pro Forma Adjusted EBITDA was 6.4 times, and as defined in the Company’s credit agreement, the Company’s fixed charge coverage ratio was 2.7 times. As of September 30, 2024, the Company’s net debt to total enterprise value was 43.1%. The Co
Slide 11: Revised 2024 Outlook Reconciliation
Page 11 The following table provides a reconciliation of the revised outlook range of the Company’s 2024 estimated Net Income Attributable to the Company per Diluted Share to estimated Core FFO and AFFO per Diluted Share: Revised Outlook Range for 2024 (Unaudited) Low High Net Income Attributable to
Slide 12: About CTO Realty Growth, Inc.
Page 12 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 13: Non-GAAP Financial Measures
Page 13 each of which are non-GAAP financial measures. We believe these non-GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs. FFO, Core FFO, AFFO, Pro Forma Adjusted EBITDA,
Slide 14: Non-GAAP Financial Measures (continued)
Page 14 cost of revenues, management fee income, and interest income from commercial loans and investments are also excluded from Same-Property NOI. GAAP net income or loss is further adjusted to remove the impact of properties that were not owned for the full current and prior year reporting period
Slide 15: Consolidated Balance Sheets
Page 15 CTO Realty Growth, Inc. Consolidated Balance Sheets (In thousands, except share and per share data) As of (Unaudited) September 30, 2024 December 31, 2023 ASSETS Real Estate: Land, at Cost $ 253,742 $ 222,232 Building and Improvements, at Cost 691,055 559,389 Other Furnishings and Equipment,
Slide 16: Consolidated Statements of Operations
Page 16 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, September 30, September 30, September 30, 2024 2023 2024 2023 Revenues Income Properties $ 28,528 $ 25,183 $
Slide 17: Same-Property NOI Reconciliation
Page 17 CTO Realty Growth, Inc. Non-GAAP Financial Measures Same-Property NOI Reconciliation (Unaudited) (In thousands) Three Months Ended Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Net Income (Loss) Attributable to the Company $ 6,227 $ 2,686 $ 13,
Slide 18: FFO, Core FFO and AFFO Reconciliation
Page 18 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 Nine Months Ended September 30, 2024 September 30
Slide 19: Reconciliation of Net Debt to Pro Forma Adjusted EBITDA
Page 19 CTO Realty Growth, Inc. Non-GAAP Financial Measures Reconciliation of Net Debt to Pro Forma Adjusted EBITDA (Unaudited) (In thousands) Three Months Ended September 30, 2024 Net Income Attributable to the Company $ 6,227 Depreciation and Amortization of Real Estate 13,204 Loss on Disposition
Slide 20: Capitalization & Dividends
© CTO Realty Growth, Inc. | ctoreit.com 20 Capitalization & Dividends Equity Capitalization Common Shares Outstanding 29,971 Common Share Price $19.02 Total Common Equity Market Capitalization $570,058 Series A Preferred Shares Outstanding 4,713 Series A Preferred Par Value Per Share $25.00 Series A
Slide 21: Debt Summary
© CTO Realty Growth, Inc. | ctoreit.com 21 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 Third Quarter 2024 Earnings Release. Indebtedness Outstanding Face Value Interest Rate Maturity Date Type 20
Slide 22: Debt Maturities
© CTO Realty Growth, Inc. | ctoreit.com 22 Debt Maturities Year Outstanding % of Debt Maturing Cumulative % of Debt Maturing Weighted Average Rate 2024 $ − − % − % − % 2025 51,034 10% 10% 3.88% 2026 82,800 16% 25% 3.01% 2027 195,000 37% 62% 4.27% 2028 100,000 19% 81% 5.18% 2029 100,000 19% 100% 4.68
Slide 23: Year-to-Date Investments
© CTO Realty Growth, Inc. | ctoreit.com 23 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 24: Year-to-Date Dispositions
© CTO Realty Growth, Inc. | ctoreit.com 24 Year-to-Date Dispositions Property Market Type Date Sold Square Feet Price Gain/(Loss) 125 Lincoln & 150 Washington Santa Fe, NM Santa Fe Mixed Use March 2024 136,240 $19,977 $4,618 Jordan Landing, West Jordan UT West Jordan Retail Power Center August 170,9
Slide 25: Real Estate Portfolio Capital Investments
© CTO Realty Growth, Inc. | ctoreit.com 25 Real Estate Portfolio Capital Investments Investment in Previously Occupied Space Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Capital Expenditures $ − $54 $7 $61 Tenant Improvement Allowances 48 529 936 1,513 Leasing Commissions 541 89 373 1,003 Total Investment i
Slide 26: Real Estate Portfolio Summary
© CTO Realty Growth, Inc. | ctoreit.com 26 Real Estate Portfolio Summary Total Portfolio as of September 30, 2024 Asset Type Number of Properties Square Feet Cash ABR PSF Occupancy Leased Occupancy Single Tenant 6 252 $22.01 100.0% 100.0% Multi-Tenant 16 4,360 $19.29 89.4% 95.6% Total Portfolio 22 4
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 Atlanta, GA The Collection at Forsyth Lifestyle 2022 2006 69.5 560,665 86% 92% $20.47 Ashford Lane Lifestyle
Slide 28: Real Estate Portfolio Detail
© CTO Realty Growth, Inc. | ctoreit.com 28 Real Estate Portfolio Detail Property Type Year Acquired/ Developed Year Built Acreage Square Feet In-Place Occupancy Leased Occupancy Cash ABR PSF Charlotte, NC Carolina Pavilion Retail Power Center 2024 1995 72.2 685,714 81% 94% $11.83 Albuquerque, NM Fid
Slide 29: Leasing Summary
© CTO Realty Growth, Inc. | ctoreit.com 29 Leasing Summary Renewals and Extensions Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Leases 10 7 11 28 Square Feet 34 48 122 204 New Cash Rent PSF $29.26 $21.06 $18.04 $20.62 Tenant Improvements $15 $10 $53 $78 Leasing Commissions $40 $57 $36 $133 Weighted Average
Slide 30: Comparable Leasing Summary
© CTO Realty Growth, Inc. | ctoreit.com 30 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 31: Same-Property NOI
© CTO Realty Growth, Inc. | ctoreit.com 31 Same-Property NOI Multi-Tenant Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Number of Comparable Properties 12 12 12 11 Same-Property NOI – 2024 $13,966 $13,587 $15,457 $40,834 Same-Property NOI – 2023 $13,305 $13,391 $14,439 $38,923 $ Variance $661 $196 $1,018 $1,
Slide 32: Lease Expiration Schedule
© CTO Realty Growth, Inc. | ctoreit.com 32 Lease Expiration Schedule Anchor Tenants (1) Year Leases Expiring Expiring SF % of Total Cash ABR % of Total Cash ABR PSF 2024 1 20 0.5% $204 0.2% $10.00 2025 7 125 3.0% 2,630 2.9% $20.96 2026 11 337 8.1% 5,932 6.6% $17.60 2027 13 455 11.0% 4,936 5.5% $10.8
Slide 33: Lease Expiration Schedule Total
© CTO Realty Growth, Inc. | ctoreit.com 33 Lease Expiration Schedule Total Year Leases Expiring Expiring SF % of Total Cash ABR % of Total Cash ABR PSF 2024 14 61 1.5% $1,343 1.5% $21.86 2025 43 233 5.6% 6,118 6.8% $26.24 2026 64 532 12.8% 11,613 13.0% $21.82 2027 75 643 15.5% 10,547 11.8% $16.41 20
Slide 34: Top Tenant Summary
© CTO Realty Growth, Inc. | ctoreit.com 34 Top Tenant Summary Tenant/Concept Credit Rating1 Leases2 Leased Square Feet2 % of Total Cash ABR % of Total AMC CCC+ / Caa2 3 174 3.8% $4,008 4.5% Fidelity A+ / A1 2 218 4.7% 3,674 4.1% Ross/dd’s Discount BBB+ / A2 6 164 3.6% 2,115 2.4% Best Buy BBB+ / A3 3
Slide 35: Geographic Diversification
© CTO Realty Growth, Inc. | ctoreit.com 35 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 24% $28,061 31% $158,112 220,379 0.9%
Slide 36: Other Assets
© CTO Realty Growth, Inc. | ctoreit.com 36 Other Assets Investment Securities Shares & Operating Partnership Units Owned Value Per Share September 30, 2024 Estimated Value Annualized Dividend Per Share In-Place Annualized Dividend Income Alpine Income Property Trust 2,362 $18.20 $42,997 $1.12 $2,645
Slide 37: 2024 Guidance
© CTO Realty Growth, Inc. | ctoreit.com 37 2024 Guidance Low High Core FFO Per Diluted Share3 $1.83 − $1.87 AFFO Per Diluted Share3 $1.96 − $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 limi
Slide 38: Contact Information & Research Coverage
© CTO Realty Growth, Inc. | ctoreit.com 38 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 39: Safe Harbor
© CTO Realty Growth, Inc. | ctoreit.com 39 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 40: Non-GAAP Financial Measures
© CTO Realty Growth, Inc. | ctoreit.com 40 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 41: Non-GAAP Financial Measures (Continued)
© CTO Realty Growth, Inc. | ctoreit.com 41 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 42: Definitions & Terms
© CTO Realty Growth, Inc. | ctoreit.com 42 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 October 24, 2024. All information is as of September 30, 2024, unless