Core Viewpoint - The focus is on creating a portfolio that emphasizes growth and dividend income, aiming for an easy retirement through compounding dividend income and growth [1]. Group 1: Investment Strategy - The investment strategy is centered around generating monthly dividend income that increases through reinvestment and annual raises [1]. - The portfolio includes long positions in specific stocks such as MO, CTO, VZ, and STWD, indicating a commitment to these investments [1]. Group 2: Personal Approach - The article reflects a personal approach to investing, emphasizing the importance of individual research and aligning investments with personal financial goals [2]. - It highlights that the opinions expressed are personal and not intended as professional investment advice [2].

Core Viewpoint - CTO Realty Growth is currently trading at 8.76 times the midpoint of its improved guidance range for fiscal 2025 funds from operations (FFO) of $1.84 to $1.87 per share, which suggests a potential mispricing in the market [1]. Group 1: Company Performance - CTO Realty Growth has experienced a 17% pullback over the last year, indicating volatility in its stock performance [1]. Group 2: Market Strategy - The equity market serves as a mechanism for wealth creation or destruction over the long term, highlighting the importance of strategic investment decisions [1]. - Pacifica Yield focuses on long-term wealth creation by targeting undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1].

Financial Data and Key Metrics Changes - The company reported core FFO of $15.6 million for the quarter, an increase of $3 million compared to $12.6 million in the same quarter of the previous year [11] - Core FFO per share was $0.48, down from $0.50 in the comparable quarter of the prior year [11] - Same property NOI increased by 2.3% during the quarter, driven by leasing activity across the portfolio [12] Business Line Data and Key Metrics Changes - Year-to-date leasing activity reached 482,000 square feet, with 424,000 square feet being comparable leasing, achieving a weighted average base rent spread of 21.7% [4] - In the third quarter, the company executed 143,000 square feet of new retail leases, renewals, and extensions at an average base rent of $23 per square foot [4] - The lease percentage of the Shops at Legacy stands at approximately 85% following recent leasing activity [6] Market Data and Key Metrics Changes - The signed-not-open (SNO) pipeline is valued at $5.5 million, representing about 5.3% of annual cash base rents as of quarter-end [5] - Approximately 76% of the SNO pipeline is expected to be recognized in 2026, with 100% in 2027 [5] Company Strategy and Development Direction - The company is focused on enhancing liquidity through recent term loan financings and is actively pursuing acquisitions that align with its leasing and operating strengths [7][9] - The company aims to achieve a positive cash leasing spread of 40%-60% across its vacant anchor spaces [5] - The management is optimistic about the value creation from leasing activities and the potential for earnings growth [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the leasing progress and the overall operating performance, highlighting strong demand in the retail sector [4][8] - The company anticipates additional deleveraging as vacant anchor boxes are released and tenants in the SNO pipeline commence paying rent [11] - Management noted that the acquisition of the South Florida shopping center is expected to close before year-end, which will further enhance the company's portfolio [7] Other Important Information - The company ended the quarter with approximately $170 million of liquidity, consisting of $161 million available under the revolving credit facility and $9 million in cash [10] - The company repurchased $9.3 million of common stock at a weighted average purchase price of $16.27 per share [10] Q&A Session Summary Question: What is the pro forma debt to EBITDA after the Florida acquisition and revenue from signed-not-open leases? - Management indicated that the Florida asset will be temporarily financed through the line of credit, and the signed-not-open pipeline would reduce debt to EBITDA by about half a turn as it comes online [15] Question: What is the timing for recognizing revenue from the signed-not-open pipeline? - Management expects to recognize about $4 million of the $5.5 million pipeline in 2026, ramping up throughout the year [17] Question: Where is the most significant vacancy currently? - The largest vacancy is a 40,000 square foot space at Carolina Pavilion, with management exploring options to fill it [18] Question: What is the status of structured investments maturing in early 2026? - Management stated that Founders Square will pay off, while Waters Creek may either extend or pay off [21] Question: How is the company approaching capital allocation between buybacks and structured investments? - Management expressed a preference for buying back shares given the current stock price and indicated that they would continue to do so within credit facility restrictions [25] Question: What is the status of leases expiring in the fourth quarter? - Management does not foresee any risk of non-renewal for the leases expiring, as many tenants are below market rent [32] Question: How much of the potential new base rent from anchor box releasing is already set? - Six closed leases represent about $2.5 million of the potential new base rent, with the remaining $2 million contingent on ongoing negotiations [48] Question: Are there any additional acquisitions expected in 2025? - Management does not expect additional acquisitions beyond the South Florida shopping center transaction due to time constraints [50]

Financial Data and Key Metrics Changes - The company reported core FFO of $15.6 million for the quarter, an increase of $3 million compared to $12.6 million in the same quarter of the previous year [11] - Core FFO per share was $0.48, down from $0.50 in the comparable quarter of the prior year [11] - Same property NOI increased by 2.3% during the quarter, driven by leasing activity across the portfolio [12] - The company ended the quarter with net debt to EBITDA of 6.7x, an improvement from 6.9x at the end of the second quarter [11] Business Line Data and Key Metrics Changes - Year-to-date leasing activity reached 482,000 sq ft, including 424,000 sq ft of comparable leasing, with a weighted average base rent spread of 21.7% [4] - In the third quarter, the company executed 143,000 sq ft of new retail leases, renewals, and extensions at an average base rent of $23 per sq ft [4] - The signed-not-open (SNO) pipeline stands at $5.5 million, representing approximately 5.3% of annual cash base rents [5] Market Data and Key Metrics Changes - The lease percentage of the Shops at Legacy stands at approximately 85% following recent leasing activity [6] - The company signed a significant lease at the Shops at Legacy, a 243,000 sq ft mixed-use lifestyle center located in Dallas, Texas [4] Company Strategy and Development Direction - The company is focused on enhancing liquidity through recent term loan financings and is targeting acquisitions that align with its leasing and operating strengths [7][9] - The company aims to achieve a positive cash leasing spread of 40%-60% across its vacant anchor spaces [5] - The management is optimistic about the value creation from the leasing progress and the potential earnings growth from the SNO pipeline [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the leasing progress and the potential for increased foot traffic from new tenants [5] - The company anticipates that approximately 76% of the SNO pipeline will contribute to earnings growth in 2026, with full recognition in 2027 [5] - Management noted that the acquisition of the South Florida shopping center is expected to close before year-end, which aligns with their strategic goals [7] Other Important Information - The company repurchased $9.3 million of common stock at a weighted average purchase price of $16.27 per share [10] - The company raised its full-year 2025 guidance for core FFO to a range of $1.84-$1.87 per diluted share [12] Q&A Session Summary Question: What is the pro forma debt to EBITDA after the Florida acquisition? - Management indicated that the Florida asset will be temporarily financed through the line of credit, and the signed-not-open pipeline will reduce debt to EBITDA by about half a turn as it comes online [15] Question: When will the revenue from the signed-not-open pipeline start hitting? - Revenue from the pipeline is expected to start in early next year, with approximately $4 million recognized throughout 2026 [17] Question: Where is the most significant vacancy currently? - The largest vacancy is a 40,000 sq ft space at Carolina Pavilion, with management exploring options to fill it [18] Question: What is the status of structured investments maturing in early 2026? - Management expects Founders Square to pay off, while Waters Creek may either extend or pay off [21] Question: How is the company approaching capital allocation between buybacks and structured investments? - Management expressed a preference for buying back shares given the current stock price and dividend yield [25] Question: What is the outlook for the acquisition environment in 2026? - Management indicated a strong pipeline of potential sell opportunities and a focus on matching them with good acquisition candidates [51]

Financial Data and Key Metrics Changes - The company reported core FFO of $15.6 million for the quarter, an increase of $3 million compared to $12.6 million in the same quarter of the previous year [12] - Core FFO per share was $0.48, down from $0.50 in the comparable quarter of the prior year, reflecting a reduction in leverage [12] - Same property NOI increased by 2.3% during the quarter, driven by leasing activity across the portfolio [13] Business Line Data and Key Metrics Changes - Year-to-date leasing activity reached 482,000 square feet, with 424,000 square feet being comparable leasing, and a weighted average base rent spread of 21.7% [4] - In the third quarter, the company executed 143,000 square feet of new retail leases, renewals, and extensions at an average base rent of $23 per square foot [4] - The lease percentage of the Shops at Legacy stands at approximately 85% following recent leasing activity [6] Market Data and Key Metrics Changes - The signed-not-open (SNO) pipeline is valued at $5.5 million, representing about 5.3% of annual cash base rents as of quarter-end [5] - Approximately 76% of the SNO pipeline is expected to be recognized in 2026, with 100% in 2027 [5] Company Strategy and Development Direction - The company is focused on enhancing liquidity through recent debt term financing and is actively pursuing acquisitions that align with its leasing and operating strengths [8][10] - The company aims to achieve a positive cash leasing spread of 40% to 60% across its vacant anchor spaces [5] - The company is considering capital allocation between share buybacks and structured investments, emphasizing the attractiveness of its own stock given current trading levels [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about leasing progress and value creation, highlighting the potential for earnings growth from the SNO pipeline [9] - The company anticipates that the signed-not-open pipeline will begin contributing to revenue in early 2026, with a total of about $4 million expected to be recognized next year [18] - Management noted that there are no significant risks regarding non-renewal of leases expiring in the fourth quarter [31] Other Important Information - The company ended the quarter with net debt to EBITDA of 6.7 times, a slight improvement from 6.9 times at the end of the previous quarter [12] - The company repurchased $9.3 million of common stock at a weighted average purchase price of $16.27 per share [11] Q&A Session Summary Question: What does the pro forma debt to EBITDA look like after the Florida acquisition? - Management indicated that the Florida asset will be temporarily financed through the line of credit, and the signed-not-open pipeline would reduce debt to EBITDA by about half a turn as it comes online [16][17] Question: What is the timing for revenue recognition from the signed-not-open pipeline? - Management expects about $4 million of the $5.5 million pipeline to be recognized in 2026, ramping up throughout the year [18] Question: Where is the most significant vacancy currently? - The largest vacancy is a 40,000 square foot space at Carolina Pavilion, with management exploring options to fill it [19] Question: What is the status of structured investments maturing in early 2026? - Management indicated that Founders Square will pay off, while Waters Creek may either extend or pay off [20][21] Question: How does the company view capital allocation between buybacks and structured investments? - Management expressed a preference for buying back shares given the current stock price and dividend yield [25] Question: What is the status of leases expiring in the fourth quarter? - Management does not foresee any risks regarding non-renewal of leases expiring in the fourth quarter [31] Question: How much of the potential new base rent from anchor box releasing is already set? - Six closed leases represent about $2.5 million of the potential new base rent, with the remaining $2 million contingent on ongoing negotiations [48]

Financial Highlights - Core FFO Per Share is $0.48[4] - Cash ABR PSF is $19.61[4] - Quarterly same-property NOI growth is 2.3%[4] - FY 2025 Guidance for Core FFO Per Diluted Share is $1.84 - $1.87[4] Portfolio & Leasing Activity - Leased Occupancy is 94.2%, a 360 bps spread to 90.6% occupancy[4] - Comparable leasing spread is 10%[4] - Approximately 125,000 square feet of comparable leasing activity[4] - SNO Pipeline is $5.5 million, representing 5.3% of in-place ABR[4] - 82% of ABR is from Georgia, Texas, Florida & North Carolina[4, 11] Enterprise Value & Valuation - Enterprise Value is $1.2 billion[5, 11] - Equity Market Cap is $533 million[11] - Net Debt Outstanding is $598 million[11]

分组1 - CTO Realty reported quarterly funds from operations (FFO) of $0.5 per share, exceeding the Zacks Consensus Estimate of $0.49 per share, but down from $0.51 per share a year ago, representing an FFO surprise of +2.04% [1] - The company posted revenues of $37.76 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.96%, compared to year-ago revenues of $31.81 million [2] - CTO Realty has surpassed consensus FFO estimates three times over the last four quarters and topped consensus revenue estimates four times during the same period [2] 分组2 - The stock has underperformed the market, losing about 16.6% since the beginning of the year, while the S&P 500 gained 16.9% [3] - The current consensus FFO estimate for the coming quarter is $0.51 on revenues of $38.03 million, and for the current fiscal year, it is $1.96 on revenues of $148.87 million [7] - The Zacks Industry Rank for REIT and Equity Trust - Other is currently in the top 35% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Revenue Performance - Total revenue for Q3 2025 increased to $37.8 million, up 18.7% from $31.8 million in Q3 2024, primarily due to increased income from recent property acquisitions and same-store revenue growth [218]. - Revenue from income properties was $33.4 million in Q3 2025, a 17.2% increase from $28.5 million in Q3 2024, driven by portfolio growth and leasing activity [219]. - Total revenue for the nine months ended September 30, 2025 increased to $111.2 million, a 25.3% increase from $88.8 million in the same period of 2024 [233]. - Income properties revenue rose by $19.5 million, or 24.6%, to $98.5 million for the nine months ended September 30, 2025, compared to $79.0 million in 2024 [234]. - For the three months ended September 30, 2025, total revenue increased to $37.8 million, a rise of 18.7% compared to $31.8 million for the same period in 2024 [218]. Income and Expenses - Net income attributable to the Company for the nine months ended September 30, 2025 was $(18.2) million, a decrease of $31.5 million from $13.3 million in 2024, primarily due to a $20.4 million loss on extinguishment of debt [247]. - General and administrative expenses for the nine months ended September 30, 2025 totaled $13.9 million, an 18.4% increase from $11.8 million in 2024 [238]. - Interest expense increased to $19.8 million for the nine months ended September 30, 2025, up $3.0 million from $16.8 million in 2024 [245]. - Depreciation and amortization for the nine months ended September 30, 2025 totaled $44.6 million, an increase of $8.9 million from $35.7 million in 2024 [239]. Cash Flow and Financing - Cash flows provided by operating activities totaled $57.7 million for the nine months ended September 30, 2025, an increase of $11.9 million from $45.8 million in 2024 [249]. - Cash flows from financing activities decreased to $37.8 million for the nine months ended September 30, 2025, down from $161.6 million in the same period of 2024, a decrease of $123.8 million [251]. - Total cash and cash equivalents at September 30, 2025 were $9.3 million, with restricted cash totaling $8.3 million [248]. Property Transactions and Investments - The company sold three single-tenant income properties for $7.1 million during the nine months ended September 30, 2025, generating gains of $1.2 million [214]. - The company acquired one multi-tenant income property for $79.5 million during the nine months ended September 30, 2025, compared to four properties for $210.0 million in the same period of 2024 [254]. - The company expects to invest between $100.0 million and $200.0 million in income-producing properties in 2025, funded through various sources including cash on hand and borrowings [255]. - The company completed acquisitions of real estate totaling $79.5 million for the nine months ended September 30, 2025 [276]. Funds from Operations - Funds from Operations (FFO) for the nine months ended September 30, 2025, were $30.8 million, down from $37.8 million in the same period of 2024 [274]. - Adjusted Funds From Operations (AFFO) attributable to common stockholders for the nine months ended September 30, 2025, were $47.1 million, compared to $35.8 million in 2024 [274]. - Core FFO attributable to common stockholders for the three months ended September 30, 2025, was $15.6 million for the three months ended September 30, 2025, compared to $12.6 million in the same period of 2024 [1]. - AFFO attributable to common stockholders was $16.3 million for the three months ended September 30, 2025, compared to $13.1 million in the prior year [1]. Portfolio and Market Strategy - The company has a strategy focused on investing in high-quality retail and mixed-use properties in fast-growing markets with favorable business conditions [206]. - The company maintains a strategy to diversify its portfolio and increase income-producing properties primarily in larger metropolitan areas and growth markets [261]. - The current portfolio of 18 multi-tenant properties generates $99.6 million in annualized revenue with a weighted average remaining lease term of 4.9 years as of September 30, 2025 [215]. - As of September 30, 2025, the company owned and managed 21 commercial real estate properties, totaling 5.2 million square feet of gross leasable space [207]. Fair Value and Stock Performance - As of September 30, 2025, the fair value of the company's investment in Alpine Income Property Trust, Inc. (PINE) totaled $35.0 million, representing 16.1% of PINE's outstanding equity [212]. - The closing stock price of PINE decreased by $2.62 per share to $14.17 on September 30, 2025, resulting in an unrealized non-cash loss of $(6.2) million [243].

Financial Performance - Net income attributable to common stockholders for Q3 2025 was $1.036 million, a decrease of 76.2% compared to $4.349 million in Q3 2024[6] - Net income attributable to the company for the three months ended September 30, 2025, was $2,914,000, compared to $6,227,000 in 2024, reflecting a decrease of 53.3%[48] - Basic and diluted net income per share attributable to common stockholders for the three months ended September 30, 2025, was $0.03, down from $0.17 in 2024[46] Funds from Operations - Core Funds from Operations (FFO) attributable to common stockholders for Q3 2025 was $15.632 million, an increase of 23.7% from $12.633 million in Q3 2024[6] - Funds from Operations (FFO) attributable to common stockholders for the three months ended September 30, 2025, was $15,759,000, compared to $12,521,000 in 2024, marking an increase of 25.0%[51] - Adjusted Funds from Operations (AFFO) attributable to common stockholders for Q3 2025 was $16.345 million, up 24.4% from $13.142 million in Q3 2024[6] - Adjusted Funds from Operations (AFFO) attributable to common stockholders for the three months ended September 30, 2025, reached $16,345,000, up from $13,142,000 in 2024, representing a growth of 24.0%[51] Same-Property Net Operating Income - Same-Property Net Operating Income (NOI) for Q3 2025 totaled $18.6 million, reflecting a 2.3% increase from $18.2 million in Q3 2024[12] - Same-Property Net Operating Income (NOI) for the three months ended September 30, 2025, was $18,647,000, slightly up from $18,223,000 in 2024, indicating a growth of 2.3%[48] - For the nine months ended September 30, 2025, the Company's Same-Property NOI was $50.7 million, a 2.9% increase from $49.2 million in the same period of 2024[13] - The Company anticipates Same-Property NOI growth of approximately 2.5% for the year ending December 31, 2025, compared to the previous year[26] Leasing and Occupancy - Year-to-date leasing reached 482,000 square feet, with a portfolio occupancy rate of 94.2%[4] - The Company signed 64 leases totaling 481,738 square feet during the nine months ended September 30, 2025, with a comparable average cash base rent of $24.16 per square foot, representing a 21.7% increase from $19.85 per square foot in the prior year[16] - The average cash rent per square foot for new leases was $23.89, while renewals and extensions averaged $24.81, resulting in a total weighted average cash rent of $24.41 for the nine months ended September 30, 2025[17] Financial Position - Total assets as of September 30, 2025, increased to $1,222,353,000 from $1,181,644,000 as of December 31, 2024, representing a growth of approximately 3.5%[44] - Long-term debt increased to $604,163,000 as of September 30, 2025, up from $518,993,000 at December 31, 2024, reflecting a rise of approximately 16.4%[44] - Total liabilities increased to $665,100,000 as of September 30, 2025, compared to $568,846,000 at December 31, 2024, marking an increase of approximately 16.9%[44] - The company’s total stockholders' equity decreased to $557,253,000 as of September 30, 2025, from $612,798,000 at December 31, 2024, a decline of approximately 9.1%[44] Cash and Debt Management - The company closed on $150 million in new term loan financings at a fixed interest rate of 4.2%[5] - The Company closed $150 million in term loan financings, including a new $125 million term loan due September 2030, with an initial fixed interest rate of approximately 4.2%[18] - The Company's net debt to Pro Forma Adjusted EBITDA was 6.7 times, and the fixed charge coverage ratio was 3.0 times as of September 30, 2025[21] - The net debt to pro forma adjusted EBITDA ratio was 6.7x as of September 30, 2025[54] Shareholder Returns - The company repurchased 571,473 shares of common stock for $9.3 million at an average price of $16.27 per share[5] - The company declared dividends of $0.38 per common share for the three months ended September 30, 2025, consistent with the same period in 2024[51] Other Financial Metrics - The company emphasizes the importance of non-GAAP financial measures such as FFO, Core FFO, and AFFO for assessing operating performance, which are widely accepted in the industry[35] - General and administrative expenses are expected to be within a range of $18.0 million to $18.5 million for 2025[26] - The company reported a loss on extinguishment of debt of $20,449,000 for the nine months ended September 30, 2025[48] - The company reported a decrease in accumulated other comprehensive income from $12,517,000 to $(584,000) between December 31, 2024, and September 30, 2025[44] - The company’s investment in Alpine Income Property Trust, Inc. decreased to $35,022,000 as of September 30, 2025, down from $39,666,000 at December 31, 2024, a decline of about 11.7%[44] - Cash and cash equivalents slightly increased to $9,281,000 as of September 30, 2025, compared to $9,017,000 at December 31, 2024[44]

Core Insights - CTO Realty Growth, Inc. has raised its full-year 2025 outlook, indicating positive expectations for financial performance [1][29] - The company has strengthened its balance sheet with a $150 million term loan financing, which will help in managing its debt obligations [1][23] - The current signed-not-open pipeline stands at $5.5 million, representing 5.3% of annual cash base rent, which is expected to contribute to future net operating income (NOI) [1][5] Financial Performance - For the third quarter ended September 30, 2025, net income attributable to the company was $2.914 million, a decrease of 53.2% compared to $6.227 million in the same quarter of 2024 [4] - Core Funds from Operations (FFO) attributable to common stockholders increased by 23.7% to $15.632 million, while Adjusted Funds from Operations (AFFO) rose by 24.4% to $16.345 million [4][5] - Same-Property NOI for the third quarter totaled $18.6 million, reflecting a 2.3% increase from $18.2 million in the prior year [5][14] Leasing Activity - The company leased 143,000 square feet in the third quarter, bringing year-to-date leasing to 482,000 square feet, with a portfolio occupancy rate of 94.2% [3][19] - The average cash base rent for comparable leases signed this year increased by 21.7% to $24.16 per square foot compared to $19.85 per square foot previously [19][20] - The company is currently negotiating leases for four vacant anchor spaces, which, along with the signed-not-open pipeline, is expected to drive NOI growth in 2026 and beyond [3][5] Capital Markets and Balance Sheet - As of September 30, 2025, the company had $170.3 million in liquidity and closed on $150 million in new term loan financings at an initial fixed interest rate of 4.2% [5][23] - The company repurchased 571,473 shares of common stock for $9.3 million at a weighted average price of $16.27 per share [5][23] - The company's net debt to Pro Forma Adjusted EBITDA ratio was 6.7 times, and the fixed charge coverage ratio was 3.0 times as of September 30, 2025 [28] 2025 Outlook - The company has increased its Core FFO and AFFO guidance for 2025, projecting Core FFO per diluted share to be between $1.84 and $1.87, and AFFO per diluted share to be between $1.96 and $1.99 [29][30] - The outlook includes assumptions for investments between $100 million and $200 million at a weighted average initial cash yield of 8.0% to 8.5% [29]