Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The service offers a free two-week trial for potential investors to explore exclusive income-focused portfolios [1] Group 2 - The article discusses the distinction between being 'rich' and 'wealthy', highlighting that 'rich' refers to those who receive large paychecks, while 'wealthy' refers to those who pay them [2] - The author emphasizes a defensive investment strategy with a medium- to long-term horizon [2]

Core Insights - The article emphasizes the importance of thorough analysis in identifying investment opportunities and market trends, highlighting the author's extensive experience in the financial sector [1]. Group 1 - The author has a background in writing for Fade The Market on Seeking Alpha, focusing on providing insightful analysis and research on investment opportunities [1]. - The author is no longer involved with Fade The Market, indicating a shift in focus or strategy [1]. - The expertise developed over ten years includes evaluating market trends and optimizing financial portfolios [1].

Financial Data and Key Metrics Changes - The company reported a Core FFO of $14.4 million for Q1 2025, an increase of $3.7 million compared to $10.7 million in Q1 2024 [15] - On a per share basis, Core FFO was $0.46 in Q1 2025 compared to $0.48 in Q1 2024, primarily due to reduced leverage and downtime from re-leasing anchor spaces [16] - The net debt to EBITDA ratio was 6.6 times at the end of the quarter, slightly elevated from the previous quarter but a full turn lower than one year ago [15] Business Line Data and Key Metrics Changes - The company signed over 112,000 square feet of new leases, renewals, and extensions at an average rent of $24.14 per square foot, nearly 25% higher than the in-place portfolio average of $19.41 per square foot [7] - The portfolio was 93.8% leased and 91% occupied at quarter end [9] - The signed but not opened leasing pipeline stands at $4 million of annual base rent, representing 4% of cash rents at quarter end [10] Market Data and Key Metrics Changes - The company acquired Ashley Park for $79.8 million, with a cash cap rate near the high end of guidance, indicating strong market interest [5] - There is active tenant interest for nearly half of the 40,000 square feet of vacancy at Ashley Park, with 200,000 square feet of shop space paying below market rent [6] Company Strategy and Development Direction - The company continues to focus on acquiring properties in growth markets in the Southeast and Southwest, with a strong pipeline of potential acquisitions [6] - The management is optimistic about the leasing outlook for anchor spaces previously leased to tenants that filed for bankruptcy, expecting a positive cash leasing spread of 40% to 60% [9] - The company is also considering recycling assets into higher yielding properties as market conditions improve [32] Management's Comments on Operating Environment and Future Outlook - Management noted that despite tariff uncertainties, the company is well-positioned with high-quality properties and a diversified tenant base [10] - The management reaffirmed full-year 2025 guidance for Core FFO per share of $1.80 to $1.86 and AFFO of $1.93 to $1.98, with consistent underlying assumptions [18] Other Important Information - The company executed two SOFR swaps, fixing SOFR for $100 million of principal at a weighted average rate of 3.32% for five years, reducing the applicable interest rate significantly [12] - The company extinguished $51 million of convertible notes, resulting in a charge of approximately $20.5 million to be recorded in Q2 [14] Q&A Session Summary Question: Can you provide more detail on the anchor space negotiations? - Management indicated that leasing activity has been strong and consistent, with no pauses in discussions despite market volatility [21] Question: What drove the new lease spreads? - The increase in lease spreads was primarily due to two significant leases that accounted for a large portion of new leasing activity, driving spreads over 80% [23] Question: What is the expected CapEx for bankrupt tenant spaces? - The expected CapEx for re-leasing is in the range of $9 million to $12 million, with little spent so far as tenants need to complete their work before reimbursements [30][58] Question: How does the company plan to fund new investments? - The company plans to handle funding internally with liquidity and is considering selling remaining office properties to enhance capital [32] Question: Have cap rates changed since the tariff announcement? - Management noted that cap rates for core assets have remained stable or decreased, with strong demand in the shopping center market [49] Question: What is the timeline for marking to market on recent acquisitions? - Management expects to see movement in lease rates for recent acquisitions by mid-next year as they work through tenant transitions [52]

Financial Data and Key Metrics Changes - The company reported a Core FFO of $14.4 million for Q1 2025, an increase of $3.7 million compared to $10.7 million in Q1 2024 [15] - On a per share basis, Core FFO was $0.46 in Q1 2025, down from $0.48 in Q1 2024, primarily due to reduced leverage and downtime from re-leasing anchor spaces [16] - The net debt to EBITDA ratio was 6.6 times at the end of the quarter, slightly elevated from the previous quarter but a full turn lower than a year ago [15] Business Line Data and Key Metrics Changes - The company signed over 112,000 square feet of new leases, renewals, and extensions at an average rent of $24.14 per square foot, nearly 25% higher than the portfolio average of $19.41 per square foot [7] - The portfolio was 93.8% leased and 91% occupied at quarter end [9] - The signed but not open leasing pipeline stands at $4 million of annual base rent, representing 4% of cash rents at quarter end [10] Market Data and Key Metrics Changes - The company acquired Ashley Park for $79.8 million, with a cash cap rate near the high end of guidance, indicating strong market interest [5] - There is active tenant interest for nearly half of the 40,000 square feet of vacancy at Ashley Park, with significant potential for lease-up [6] Company Strategy and Development Direction - The company continues to focus on acquiring properties in growth markets in the Southeast and Southwest, with a strong pipeline of potential acquisitions [6] - The management is optimistic about the leasing outlook for anchor spaces previously leased to tenants that filed for bankruptcy, expecting a positive cash leasing spread of 40% to 60% [9] - The company is considering recycling assets into higher yielding properties as capital returns to the market [34] Management's Comments on Operating Environment and Future Outlook - Management noted that leasing activity remains strong despite recent market volatility, with no significant pauses in negotiations [21] - The company is well-positioned with high-quality properties and a diversified tenant base amid tariff uncertainties [10] - Management reaffirmed full-year 2025 guidance for Core FFO per share of $1.80 to $1.86 and AFFO of $1.93 to $1.98 [18] Other Important Information - The company executed two SOFR swaps, fixing SOFR for $100 million of principal at a weighted average rate of 3.32% for five years, reducing the applicable interest rate significantly [12] - The company extinguished $51 million of convertible notes, resulting in a charge of approximately $20.5 million to be recorded in Q2 [14] Q&A Session Summary Question: Can you provide more detail on the anchor space negotiations? - Management indicated that leasing activity has been consistent and strong, with no pauses in negotiations despite market volatility [21] Question: What drove the new lease spreads? - The increase in lease spreads was primarily due to two significant leases that accounted for a large portion of new leasing activity, driving spreads over 80% [22][23] Question: How much CapEx is required for the bankrupt tenant spaces? - The expected CapEx for re-leasing these spaces is in the range of $9 million to $12 million, with little spent so far [30][31] Question: What is the expected timeframe for tenants to start paying rent after signing leases? - A safe estimate for rent commencement is about a year, although some tenants may move in more quickly [32] Question: How does the company plan to fund new acquisitions? - The company plans to handle funding internally with liquidity and is considering selling remaining office properties to enhance capital [33] Question: Have cap rates changed since the tariff announcement? - Management noted that cap rates for traditional core assets have remained stable or decreased, despite wider credit spreads in the bond market [50] Question: What is the timeline for marking to market on recent acquisitions? - Management expects to see movement in marking to market for acquisitions starting in the middle of next year [55]

Financial Data and Key Metrics Changes - The company reported a Core FFO of $14.4 million for Q1 2025, an increase of $3.7 million compared to $10.7 million in Q1 2024 [14] - On a per share basis, Core FFO was $0.46 in Q1 2025, down from $0.48 in Q1 2024, primarily due to reduced leverage and downtime from re-leasing anchor spaces [15] - The net debt to EBITDA ratio was 6.6 times at quarter end, slightly elevated from the previous quarter but a full turn lower than one year ago [14] Business Line Data and Key Metrics Changes - The company signed over 112,000 square feet of new leases, renewals, and extensions at an average rent of $24.14 per square foot, nearly 25% higher than the in-place portfolio average of $19.41 per square foot [7] - The portfolio was 93.8% leased and 91% occupied at quarter end [8] Market Data and Key Metrics Changes - The company acquired Ashley Park for $79.8 million, with a cash cap rate near the high end of guidance, indicating strong market interest [5] - The company has a signed not open leasing pipeline of $4 million in annual base rent, representing 4% of cash rents at quarter end [9] Company Strategy and Development Direction - The company continues to focus on acquiring properties in the Southeast and Southwest, with a strong pipeline of potential acquisitions [6] - The company is optimistic about re-leasing opportunities for 10 anchor spaces previously leased to tenants that filed for bankruptcy, expecting a positive cash leasing spread of 40% to 60% [8] Management's Comments on Operating Environment and Future Outlook - Management noted that leasing activity remains strong despite recent tariff uncertainties, with a well-diversified tenant base [9] - The company reaffirmed its full-year 2025 guidance for Core FFO per share of $1.80 to $1.86 and AFFO of $1.93 to $1.98 [16] Other Important Information - The company executed two SOFR swaps, fixing SOFR for $100 million of principal at a weighted average rate of 3.32% for five years, reducing the applicable interest rate significantly [11] - The company extinguished its 3.875% convertible notes for approximately $71.2 million, resulting in a debt extinguishment charge of about $20.5 million to be recorded in Q2 [13] Q&A Session Summary Question: Can you provide more detail on the anchor space negotiations? - Management indicated that leasing activity has been consistent and strong, with no pauses in discussions despite market volatility [21] Question: What drove the new lease spreads? - The new lease spreads were primarily driven by two significant leases that accounted for a large portion of the new leasing activity, resulting in spreads over 80% [23] Question: How much CapEx is required for the bankrupt tenant spaces? - The expected CapEx for re-leasing is in the range of $9 million to $12 million, covering all landlord work and commissions [30] Question: What is the expected timeframe for tenants to start paying rent after signing a lease? - A safe estimate for rent commencement is around one year, although some tenants may move in more quickly [31] Question: How does the company plan to fund new investments? - The company plans to handle funding internally with existing liquidity and is considering selling its remaining office property towards the end of the year [32] Question: Have cap rates changed since the tariff announcement? - There has been no increase in cap rates for traditional core assets, with the market remaining strong for retail shopping centers [50] Question: What is the mark-to-market upside for the Ashley Park acquisition? - The company sees opportunities for a mark-to-market upside of 10% to 20% for the Ashley Park acquisition, with significant leasing potential [58] Question: How much of the CapEx has already been spent? - Very little of the CapEx has been spent so far, as tenants need to complete their work before reimbursements begin [59] Question: Is the investment pipeline still primarily core property investments? - The company is starting to see more diverse investment opportunities and is excited about potential activity in the coming months [63]

Core Insights - CTO Realty reported $35.81 million in revenue for Q1 2025, a year-over-year increase of 27.3% [1] - The earnings per share (EPS) for the same period was $0.49, compared to $0.20 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $34.91 million by 2.58% [1] - The EPS also surpassed the consensus estimate of $0.48 by 2.08% [1] Revenue Breakdown - Interest Income from Commercial Loan and Investments was $2.96 million, exceeding the estimated $2.72 million [4] - Management Fee Income was $1.18 million, slightly above the estimated $1.14 million, representing a 6.6% increase compared to the previous year [4] - Net Earnings per Share (Diluted) was $0.01, significantly better than the estimated -$0.49 [4] Stock Performance - CTO Realty shares have returned -6% over the past month, while the Zacks S&P 500 composite has changed by -0.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

CTO Realty (CTO) came out with quarterly funds from operations (FFO) of $0.49 per share, beating the Zacks Consensus Estimate of $0.48 per share. This compares to FFO of $0.52 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of 2.08%. A quarter ago, it was expected that this real estate company would post FFO of $0.48 per share when it actually produced FFO of $0.49, delivering a surprise of 2.08%.Over the last four quarters, the compa ...

May 2025 First Quarter 2025 Investor Presentation Ashley Park | Atlanta, GA Highlights Q1 2025 Highlights | $80mm | Investment activity | | --- | --- | | $225 | Implied property value per square foot | | ~109,400 | Square feet of comparable leasing activity | | 37% | Comparable leasing spread | | 83% | ABR from Georgia, Texas, Florida & North Carolina | | ~191,000 | Portfolio 5-mile population | | 6.6x | Net Debt to Pro Forma Adjusted EBITDA | | 2.4% | Same-Property NOI quarter-over-quarter growth | $496M $ ...

Revenue Performance - Total revenue for Q1 2025 increased to $35.8 million, a 27.3% increase from $28.1 million in Q1 2024, primarily due to increased income from recent property acquisitions and same-store revenue growth [202]. - Revenue from income properties was $31.7 million in Q1 2025, up 28.6% from $24.6 million in Q1 2024, with operating income rising to $22.8 million from $17.8 million [203]. - Interest income from commercial loans and investments reached $3.0 million in Q1 2025, a 119.2% increase from $1.4 million in Q1 2024, driven by new loan originations [205]. Portfolio and Investment Strategy - The current portfolio consists of 18 multi-tenant properties generating $98.3 million in annualized revenue and 6 single-tenant properties generating $5.4 million, both with a weighted average remaining lease term of 4.9 years [199]. - The company focuses on investing in high-quality retail and mixed-use properties in fast-growing, business-friendly markets [191]. - The investment strategy includes a continual review of the existing income property portfolio to identify opportunities for capital recycling based on performance and market conditions [198]. Expenses and Income - Total general and administrative expenses increased by 11.1% to $4.683 million for the three months ended March 31, 2025, compared to $4.216 million in the same period of 2024 [207]. - Depreciation and amortization rose by $3.4 million to $14.3 million for the three months ended March 31, 2025, driven by growth in the income property portfolio [209]. - Net income attributable to the company decreased by $3.5 million to $2.3 million for the three months ended March 31, 2025, primarily due to the absence of gains on asset dispositions [216]. Cash Flows - Cash flows provided by operating activities totaled $10.3 million for the three months ended March 31, 2025, down from $11.8 million in the same period of 2024, a decrease of $1.5 million [218]. - Cash flows used in investing activities increased by $28.6 million to $80.6 million for the three months ended March 31, 2025, compared to $52.0 million in 2024, due to decreased disposition activity [219]. - Cash flows provided by financing activities increased by $31.1 million to $68.3 million for the three months ended March 31, 2025, compared to $37.2 million in 2024 [220]. Acquisitions and Future Investments - The company acquired one multi-tenant income property for $79.5 million during the three months ended March 31, 2025, compared to $71.0 million for acquisitions in the same period of 2024 [222]. - The company expects 2025 investments in income-producing properties to range from $100.0 million to $200.0 million [223]. Shareholder Returns - The company declared and paid dividends of $0.40 for preferred stock and $0.38 for common stock, consistent with the previous year [238]. - Funds from operations (FFO) attributable to common stockholders increased to $14.894 million, up 37.5% from $10.797 million year-over-year [242]. - Adjusted funds from operations (AFFO) attributable to common stockholders rose to $15.521 million, a 33.1% increase compared to $11.648 million in the prior year [242].

Financial Performance - Net income attributable to common stockholders was $0.01 per diluted share, a decrease of 95.0% compared to the prior year[5][6] - Core Funds from Operations (FFO) attributable to common stockholders increased by 34.5% to $14.4 million, or $0.46 per diluted share[5][6] - Adjusted Funds from Operations (AFFO) attributable to common stockholders rose by 33.3% to $15.5 million, or $0.49 per diluted share[5][6] - Same-Property Net Operating Income (NOI) totaled $17.1 million, reflecting a 2.4% increase from the prior year[5][9] - Total revenues for the three months ended March 31, 2025, were $35,811,000, an increase of 27.3% compared to $28,127,000 for the same period in 2024[41] - Same-Property NOI for the three months ended March 31, 2025, was $17,136,000, up 2.4% from $16,727,000 for the same period in 2024[43] - Net income attributable to the Company for the three months ended March 31, 2025, was $2,261,000, a decrease of 61.3% compared to $5,842,000 for the same period in 2024[41] - The Company reported a basic net income attributable to common stockholders of $0.01 per share for the three months ended March 31, 2025, down from $0.21 per share for the same period in 2024[41] - Funds from operations (FFO) attributable to common stockholders increased to $14,894,000, up 38.5% from $10,797,000 year-over-year[46] - Core funds from operations attributable to common stockholders were $14,445,000, compared to $10,737,000 in the prior year, representing a 34.3% increase[46] Debt and Liquidity - As of March 31, 2025, the company had liquidity of $138.4 million, including $8.4 million in cash and $130.0 million of undrawn commitments on its Revolving Credit Facility[5][12] - The company's net debt to Pro Forma Adjusted EBITDA was 6.6 times, and the fixed charge coverage ratio was 2.9 times[12][13] - The total long-term debt as of March 31, 2025, was $603.8 million, with a weighted average interest rate of 4.35%[12][13] - Long-term debt increased to $602,216,000 as of March 31, 2025, compared to $518,993,000 as of December 31, 2024, reflecting a 15.9% increase[39] - Net debt stood at $595,406,000, with a net debt to pro forma adjusted EBITDA ratio of 6.6x[48] Investments and Acquisitions - The company acquired Ashley Park, a 559,000-square-foot lifestyle center in Atlanta, Georgia, for $79.8 million, achieving a going-in cap rate near the high end of guidance[3][7] - Investments planned for 2025 are estimated between $100.0 million and $200.0 million, with a weighted average initial cash yield of 8.0% to 8.5%[19] Guidance and Outlook - The Company reaffirmed its full-year Core FFO and AFFO guidance per diluted share attributable to common stockholders[5] - The Company's 2025 outlook for Core FFO per common share is projected to be between $1.80 and $1.86, while AFFO per common share is expected to range from $1.93 to $1.98[19] - Same-Property NOI growth is anticipated to be approximately 1% compared to the year ended December 31, 2024[19] - General and administrative expenses are projected to be between $17.5 million and $18.0 million for 2025[19] - The estimated Net Loss Attributable to the Company per common share for 2025 is projected to be between $(0.46) and $(0.40)[20] Dividends - A cash dividend of $0.38 per share for common stock was announced, representing a payout ratio of 82.6% of the first quarter 2025 Core FFO attributable to common stockholders[17] - The Company declared and paid dividends of $0.40 per share for preferred stock and $0.38 per share for common stock, consistent with the previous year[41] Operational Metrics - The Company aims to enhance its operating performance by focusing on Same-Property NOI as a key performance metric, which excludes the impact of property acquisitions or dispositions[37] - The Company operates a portfolio of retail-based properties primarily in higher growth markets in the United States[23] Other Financial Metrics - The Company utilized interest rate swaps on a total of $315.0 million across various term loans to fix SOFR, achieving fixed swap rates ranging from 1.27% to 3.85%[1][3][4][5][6] - The Company completed transactions to retire $35,208,000 of 2025 Notes in exchange for 1,089,555 shares of common stock and cash payments totaling $29.0 million[16] - Adjusted EBITDA for the three months ended March 31, 2025, was $21,181,000, with an annualized figure of $84,724,000[48] - Pro forma adjusted EBITDA, reflecting the impact of current quarter investments and dispositions, reached $89,593,000[49] - Interest income from commercial loans and investments increased to $2,961,000 for the three months ended March 31, 2025, compared to $1,351,000 for the same period in 2024, representing a 119.5% increase[41] - The company reported a depreciation and amortization of real estate totaling $14,346,000 for the quarter[46] - Unrealized loss on investment securities was $165,000, a significant decrease from $4,039,000 in the previous year[46] - Distributions to preferred stockholders increased to $1,878,000 from $1,187,000 year-over-year[46]