| --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------------------------------------------------------|-------|-------|---------------------|---------------------| | | | | | | | | | | | | | | | | | | | | | | | | | October 2024 Third Quarter 2024 Investor Presentation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | The Collection at | Forsyth \| Cumming, | Company Highlights Small-cap shopping center REIT focused on open-air centers in fast growing ...

CTO Realty Growth, Inc. (NYSE:CTO) Q3 2024 Earnings Conference Call October 25, 2024 9:00 AM ET Company Participants John Albright - President & Chief Executive Officer Phil Mays - Senior Vice President, Chief Financial Officer and Treasurer Conference Call Participants Rob Stevenson - Janney Montgomery and Scott Craig Kucera - Lucid Capital Markets John Massocca - B. Riley Securities R.J. Milligan - Raymond James Gaurav Mehta - Alliance Global Partners Operator Good day, and thank you for standing by. Welc ...

Group 1 - CTO Realty reported quarterly funds from operations (FFO) of $0.51 per share, exceeding the Zacks Consensus Estimate of $0.48 per share, and up from $0.48 per share a year ago, representing a 6.25% surprise [1] - The company achieved revenues of $31.81 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 5.49%, compared to $28.47 million in the same quarter last year [1] - Over the last four quarters, CTO Realty has consistently surpassed consensus FFO and revenue estimates [1] Group 2 - The stock's immediate price movement will largely depend on management's commentary during the earnings call and future FFO expectations [2] - CTO Realty shares have increased by approximately 12.8% since the beginning of the year, while the S&P 500 has gained 21.5% [2] Group 3 - The current consensus FFO estimate for the upcoming quarter is $0.49 on revenues of $33.39 million, and for the current fiscal year, it is $1.95 on revenues of $120.5 million [4] - The estimate revisions trend for CTO Realty is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [4] Group 4 - The REIT and Equity Trust - Other industry is currently ranked in the top 29% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [5] - Another company in the same industry, Whitestone, is expected to report quarterly earnings of $0.26 per share, reflecting a year-over-year increase of 13%, with revenues projected at $38.45 million, up 3.5% from the previous year [5]

Revenue Performance - Total revenue for Q3 2024 increased to $31.8 million, up 11.7% from $28.5 million in Q3 2023, primarily due to increased income from recent property acquisitions [191]. - Revenue from income property operations was $28.5 million in Q3 2024, reflecting a 13.3% increase from $25.2 million in Q3 2023, driven by growth and lease-up of the income property portfolio [193]. - Total revenue for the nine months ended September 30, 2024, increased to $88.7 million, a 12.0% increase from $79.2 million in the same period of 2023 [205]. - Revenue from income property operations totaled $79.0 million, reflecting an increase of $8.6 million or 12.3% compared to $70.4 million in 2023 [206]. - Total revenue for the three months ended September 30, 2024, increased to $31.8 million, a rise of 11.7% compared to $28.5 million in the same period of 2023 [191]. Income and Expenses - Net income attributable to the Company for the three months ended September 30, 2024, was $6.2 million, compared to $2.7 million in 2023, marking a significant increase [204]. - General and administrative expenses increased due to a higher employee count resulting from increased operating activity related to managed income property assets [197]. - Depreciation and amortization expenses rose to $13.2 million in Q3 2024, up from $11.7 million in Q3 2023, due to growth in the income property portfolio [198]. - Total general and administrative expenses for the nine months ended September 30, 2024, were $11.75 million, a 12.0% increase from $10.49 million in 2023 [217]. - Total general and administrative expenses for the three months ended September 30, 2024, were $4.1 million, an increase of 18.5% from $3.4 million in 2023 [199]. Investment Activity - The company acquired properties for a total purchase price of $210.0 million during the nine months ended September 30, 2024, compared to $80.0 million in the same period of 2023 [225]. - The company originated structured investments totaling $63.8 million during the nine months ended September 30, 2024, compared to $15.0 million in the same period of 2023 [225]. - The company expects to invest between $300.0 million and $350.0 million in income-producing properties in 2024 [226]. - The company acquired real estate properties for a total purchase price of $210.0 million during the nine months ended September 30, 2024 [241]. - The company’s total acquisition cost for real estate properties was $207.8 million for the nine months ended September 30, 2024, compared to $80.3 million for the same period in 2023, indicating a strategic expansion in property holdings [241]. Cash Flow - Cash flows provided by operating activities totaled $45.8 million for the nine months ended September 30, 2024, compared to $39.9 million in 2023, an increase of $5.9 million [222]. - Cash flows used in investing activities increased by $117.0 million to $215.3 million for the nine months ended September 30, 2024, compared to $98.3 million in the same period of 2023 [223]. - Cash flows provided by financing activities rose by $94.8 million to $161.6 million for the nine months ended September 30, 2024, compared to $66.8 million in the same period of 2023 [224]. Interest Income and Expense - Interest income from commercial loans and investments rose to $1.6 million in Q3 2024, a 45.0% increase from $1.1 million in Q3 2023, attributed to new loan originations [195]. - Interest expense decreased to $5.6 million for the three months ended September 30, 2024, down from $6.3 million in 2023, primarily due to a reduction in the average outstanding balance [203]. - Interest income from commercial loans and investments increased to $4.4 million for the nine months ended September 30, 2024, up from $3.0 million in 2023, a 48.6% increase [208]. - Interest expense increased by $0.6 million to $16.8 million for the nine months ended September 30, 2024, compared to $16.2 million in 2023 [220]. Shareholder Returns - The company declared dividends of $0.38 per common share for the three months ended September 30, 2024, consistent with the same amount declared in the previous year [240]. - The diluted FFO per common share for the three months ended September 30, 2024, was $0.49, compared to $0.44 for the same period in 2023, representing an increase of 11.4% [240]. - Funds from operations (FFO) attributable to common stockholders for the nine months ended September 30, 2024, was $32,893,000, up from $27,144,000 in 2023, reflecting a 21.4% increase [240]. - Core FFO attributable to common stockholders for the three months ended September 30, 2024, was $12,633,000, compared to $10,462,000 in 2023, indicating a 20.9% increase [240]. - Adjusted funds from operations (AFFO) attributable to common stockholders for the nine months ended September 30, 2024, was $35,840,000, compared to $31,410,000 in 2023, marking a 14.8% increase [240]. Property Portfolio - The current portfolio of 16 multi-tenant properties generates $85.8 million in annualized revenue from base lease payments, with a weighted average remaining lease term of 5.0 years [190]. - The company owns and manages 22 commercial real estate properties across seven states, totaling 4.6 million square feet of gross leasable space as of September 30, 2024 [183]. - The company sold two income properties for a total of $38.0 million during the nine months ended September 30, 2024, resulting in aggregate gains of $3.8 million [189]. - The company sold one multi-tenant income property for $18.0 million during the three months ended September 30, 2024, resulting in a loss of $0.8 million [200]. - The company sold its portfolio of subsurface mineral interests associated with approximately 352,000 surface acres in Florida during the nine months ended September 30, 2024 [184]. Financial Position and Credit Facility - As of September 30, 2024, the company had a $300.0 million Credit Facility with $205.0 million undrawn commitment remaining [224]. - As of September 30, 2024, the outstanding balance on the company's $300.0 million Credit Facility was $95.0 million, with $45.0 million not fixed by an interest rate swap agreement [244]. - The company has a $300.0 million Credit Facility with variable interest rates ranging from SOFR plus 0.10% plus 125 basis points to SOFR plus 0.10% plus 220 basis points based on borrowing levels [244]. - A hypothetical change in interest rates of 100 basis points would affect the company's financial position by $0.5 million as of September 30, 2024 [244]. - The company entered into interest rate swap agreements to hedge against fluctuations in interest rates related to certain debt borrowings [244].

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. Third Quarter Highlights ◾ Net Income per diluted share attributable to common stockholders of $0.17. ◾ Core Funds from Operations ("FFO") of $0.50 per diluted share attributable to common stockholders, an increase of 6.4% ...

Core Insights - CTO Realty Growth, Inc. reported strong operating results for Q3 2024, with net income per diluted share of $0.17 and significant increases in Core FFO and AFFO [1][2] - The company raised $125.7 million through its common stock ATM offering and closed a new $100 million unsecured term loan with an initial effective interest rate of 4.7% [1][2] - Full-year guidance for Core FFO was increased to a range of $1.83 to $1.87 per diluted share, and for AFFO to a range of $1.96 to $2.00 per diluted share [1][21] Quarterly Financial Results Highlights - Net income attributable to common stockholders increased to $4.35 million, a 191.7% increase from the prior year [2] - Core FFO attributable to common stockholders was $12.63 million, up 20.8% year-over-year, with Core FFO per diluted share at $0.50, a 6.4% increase [2] - AFFO attributable to common stockholders reached $13.14 million, a 22.1% increase, with AFFO per diluted share at $0.51, a 6.3% increase [2] Investment Activities - The company invested $191.3 million in Q3 2024, achieving a weighted average yield of 9.5% [7] - Key investments included the acquisition of three open-air shopping centers for $137.5 million and a $43.8 million first mortgage loan with an initial yield of 11% [7] - Year-to-date investments totaled $273.8 million, with a weighted average cash yield of 9.1% [8] Dispositions - In Q3 2024, the company sold a property for $18.0 million at an exit cap rate of 9.2% [9] - Year-to-date, two retail properties were sold for $38.0 million, generating an aggregate gain of $3.8 million [9] Portfolio Summary - As of September 30, 2024, the company's portfolio consisted of 22 properties with a total of 4.6 million square feet and a leased occupancy rate of 95.8% [10] - The portfolio is primarily retail-focused, with 66.5% of cash base rent coming from retail properties [10] Same-Property Net Operating Income (NOI) - Same-Property NOI for Q3 2024 totaled $16.8 million, reflecting a 6.3% increase from the prior year [11] - Year-to-date Same-Property NOI was $44.6 million, a 5.1% increase compared to the same period last year [12] Leasing Activity - In Q3 2024, the company signed 20 leases totaling 201,806 square feet, with a comparable cash base rent growth of 12.0% [13] - Year-to-date, 54 leases were signed totaling 384,513 square feet, with a comparable cash base rent growth of 26.0% [14] Capital Markets and Balance Sheet - The company issued 6,851,375 common shares under its ATM offering program, raising $125.7 million [15] - As of September 30, 2024, the company had $213 million in liquidity and a net debt to total enterprise value ratio of 43.1% [15][19] Dividends - A cash dividend of $0.38 per share was declared for common stock, representing a payout ratio of 76.0% of the company's Q3 2024 Core FFO per share [20] 2024 Outlook - The company revised its 2024 outlook, projecting Same-Property NOI growth of 4% to 6% and total investments between $300 million and $350 million [21]

CTO Realty Growth, Inc. (NYSE: CTO ) is a high dividend-yield stock with incredible growth potential, resulting from its strategic locations in blooming regions in the U.S. It's also cheaply valued compared to otherUnderstanding Behavioral Finance is at the core of Mapache Investing's philosophy. We view the markets through the lenses of psychology and aim to avoid the common pitfalls and biases that are the primary causes of losses. With a strong foundation in both value and growth investing, our goal is t ...

CTO Realty Growth, Inc. (CTO) is slated to report third-quarter 2024 results on Oct. 24, after the closing bell. In anticipation of the announcement, industry analysts and investors are eager to assess the company's performance and prospects in the current economic climate.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.In the last reported quarter, this Winter Park, FL-based retail real estate investment trust (REIT) reported adjusted funds from operations (AFFO) per share of 48 ce ...

Group 1 - The article promotes iREIT on Alpha as a source for in-depth research on various income alternatives including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs [1] - It highlights the positive feedback from users, with 438 testimonials, most of which are rated 5 stars, indicating high satisfaction [1] Group 2 - There is a disclosure stating that the author has no stock, option, or similar derivative positions in any of the mentioned companies and no plans to initiate such positions in the next 72 hours [2] - The article emphasizes that past performance is not indicative of future results and that no specific investment recommendations are provided [3]

Core Insights - CTO Realty Growth, Inc. has closed $274 million in investments year-to-date, with a weighted average yield of 9.1% [1][2][7] - The company raised $126 million under its ATM program in the third quarter, issuing approximately 6.9 million common shares at a weighted average price of $18.63 per share [1][4] - A new five-year $100 million unsecured term loan was closed, with an initial effective fixed interest rate of 4.7% [1][5] Investment Activity - The company's investment activity for the third quarter amounted to $191.3 million, bringing the year-to-date total to $273.8 million [2] - The company has exceeded its 2024 guidance for investment activity and plans to provide updated guidance during the full third quarter results announcement on October 24, 2024 [2] Financing Activity - The company originated a $43.8 million first mortgage loan with an initial fixed interest rate of 11% and an origination fee of 1.25%, secured by land for a mixed-use development in Herdon, Virginia [3] - As of September 30, 2024, the company had approximately $200 million of borrowing capacity available under its revolving credit facility [6] Company Overview - CTO Realty Growth, Inc. specializes in owning and operating high-quality, open-air shopping centers in the Southeast and Southwest markets of the United States [8] - The company also manages and holds a significant interest in Alpine Income Property Trust, Inc. [8]