Equity Market and Investment Strategy - The equity market is a powerful mechanism for long-term wealth creation or destruction through daily price fluctuations [1] - Pacifica Yield focuses on long-term wealth creation by targeting undervalued high-growth companies, high-dividend tickers, REITs, and green energy firms [1] Analyst's Position and Disclosure - The analyst holds a beneficial long position in shares of CTO, ADC, and KIM through stock ownership, options, or other derivatives [2] - The article expresses the analyst's own opinions and is not compensated by any company mentioned [2] Seeking Alpha's Disclosure - Seeking Alpha emphasizes that past performance does not guarantee future results and does not provide investment recommendations or advice [3] - The views expressed in the article may not reflect those of Seeking Alpha as a whole, and the platform is not a licensed securities dealer, broker, or investment adviser [3]

Investment Strategy - The investment strategy focuses on growth and dividend income, aiming to create a portfolio that compounds dividend income and growth for an easy retirement [1] - The portfolio is structured to generate monthly dividend income, which grows through dividend reinvestment and yearly increases [1] Portfolio Composition - The portfolio includes long positions in shares of MO, O, CTO, and STWD, either through stock ownership, options, or other derivatives [1] Disclosure and Disclaimer - The article is a personal opinion and not a recommendation for buying or selling stocks [2] - The investments and strategies discussed are solely personal opinions and commentary, not tailored to individual investment objectives or financial situations [2] - Seeking Alpha's disclosure states that past performance is no guarantee of future results and no investment recommendation is being given [3]

Investment Strategy - The investment strategy focuses on growth and dividend income, aiming to create a portfolio that compounds dividend income and growth for an easy retirement [1] - Dividends are a key component of the strategy, with the portfolio structured to generate monthly dividend income that grows through reinvestment and annual increases [1] Portfolio Composition - The portfolio includes long positions in shares of CTO, O, and NNN, either through stock ownership, options, or other derivatives [1] Disclosure and Disclaimer - The article is a personal opinion and not a recommendation for stock purchase or sale [2] - The investments and strategies discussed are solely personal opinions and commentary, intended for research and educational purposes [2] - Investors should conduct their own research to determine if the discussed companies fit their portfolio parameters [2]

Dividend Announcement - The company declared a quarterly cash dividend of $0.38 per share of common stock for Q4 2024, representing an annualized yield of approximately 7.8% based on the closing price on November 18, 2024 [1] - The common stock cash dividend is payable on December 31, 2024, to stockholders of record as of December 12, 2024, with an ex-dividend date of December 12, 2024 [2] - A quarterly cash dividend of $0.39844 per share was also declared for the company's 6.375% Series A Cumulative Redeemable Preferred Stock for Q4 2024, payable on December 31, 2024, to stockholders of record as of December 12, 2024 [3] Company Overview - CTO Realty Growth, Inc owns and operates high-quality, open-air shopping centers in the higher-growth Southeast and Southwest markets of the United States [4] - The company externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc (NYSE: PINE) [4] - Investors are encouraged to review the company's most recent investor presentation and supplemental financial information available on their website [4]

Company Overview - CTO Realty Growth Inc (NYSE: CTO) has been aggressively expanding since 2019, and this strategy has proven successful, as evidenced by its performance in the third quarter [1] Analyst Background - The author is a financial writer with a degree in Finance and five years of experience working with two financial companies [1] - The author specializes in Energy, Banking, and Tech stocks, focusing on fundamental analysis and long-term stock positions [1] - The author joined Seeking Alpha to share stock analysis and exchange thoughts within a like-minded community [1]

Professional Background - Steven Cress is the VP of Quantitative Strategy and Market Data at Seeking Alpha, where he created the platform's quantitative stock rating system and analytical tools [1] - He is the Founder and Co-Manager of Alpha Picks, a systematic stock recommendation tool aimed at helping long-term investors build a best-in-class portfolio [1] - Previously, he was the Founder and CEO of CressCap Investment Research, which was acquired by Seeking Alpha in 2018 for its quant analysis and market data capabilities [3] - He also founded the quant hedge fund Cress Capital Management and has extensive experience in proprietary trading and international business development at Morgan Stanley and Northern Trust [3] - With over 30 years of experience in equity research, quantitative strategies, and portfolio management, he is highly knowledgeable in investment topics [4] Methodology and Contributions - Steven Cress is dedicated to eliminating emotional biases from investment decisions by using a data-driven approach [2] - He employs sophisticated algorithms and technologies to simplify complex investment research, creating a daily updated grading system for stock trading recommendations [2] - His contributions form the cornerstone of the Seeking Alpha Quant Rating system, which interprets data for investors and provides insights on investment directions [1]

| --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------------------------------------------------------|-------|-------|---------------------|---------------------| | | | | | | | | | | | | | | | | | | | | | | | | | 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].