MasaoTaira Summary We have been primarily bullish on CTO Realty Growth, Inc. (NYSE:CTO) since we initiated coverage on the name in October of last year. The Company has had some operational hiccups in recent months, with several tenants facing significant difficulty and/or bankruptcy (e.g., WeWork, Regal). This caused us to cautiously flip to a Hold rating in late November before returning to a Buy following the Q4 2023 results. In this report, we digest the Q1 2024 results, which showed promising devel ...

High-yield real estate stocks are ideal for investors seeking stable income streams. These companies expose investors to the real estate market without the responsibility of directly owning the property and the need for significant capital money. Investing in REITs offers several advantages similar to traditional real estate investment, such as capital appreciation — as the value of the properties increases over time — and an option to diversify investment portfolios, reducing the overall risk.Moreover, REI ...

slobo/iStock Unreleased via Getty ImagesCTO Realty Growth (NYSE:CTO) forms one of my REIT positions with its safe dividend yield, retail property portfolio, and prudent multiple to FFO all forming reasons for continued bullishness. The REIT last declared a quarterly cash dividend of $0.38 per share, kept unchanged sequentially and $1.52 per share annualized, for an 8.9% dividend yield. This was 137% covered by its fiscal 2024 first-quarter adjusted FFO ("AFFO") of $0.52 per share, a roughly 73% payout r ...

CTO has an outsized dividend yield and attractive absolute valuation relative to many in its retail-focused peer group and its long-term growth opportunities. May 2024 Investor Presentation REALTY GROWTH Shops at Legacy Plano, TX Square Feet Investment in 3.9M 50% 8.4% Alpine Income Property Trust2 Based on $15.28 per share common stock price as of March 31, 2024. 3. | --- | --- | --- | --- | |--------------------------|---------------------------------------------------------|------------------------------ ...

CTO Realty Growth, Inc. (NYSE:CTO) Q1 2024 Earnings Conference Call May 3, 2024 9:00 AM ET Company Participants Lisa Vorakoun - Senior Vice President, Chief Accounting Officer and Interim Chief Financial Officer and Treasurer John Albright - Chief Executive Officer and President Conference Call Participants Gopal Mehta - Alliance Global Partners Rob Stevenson - Janney Montgomery and Scott R.J. Milligan - Raymond James Matthew Erdner - Jones Trading John Massocca - B. Riley Securities Operator Good day, and ...

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents CTO Realty Growth, Inc.'s unaudited consolidated financial statements for Q1 2024 and comparative periods, detailing financial position and performance [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (in thousands) | Metric | March 31, 2024 | December 31, 2023 | | :-------------------------- | :------------- | :---------------- | | Total Assets | $1,041,083 | $989,668 | | Total Liabilities | $578,842 | $532,142 | | Total Stockholders' Equity | $462,241 | $457,526 | - Total assets increased by **$51.4 million**, and total liabilities increased by **$46.7 million** from December 31, 2023, to March 31, 2024, primarily driven by growth in real estate assets and long-term debt[28](index=28&type=chunk) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :---------------------------------------------- | :-------------------------------- | :-------------------------------- | | Total Revenues | $28,127 | $24,717 | | Total Operating Expenses | $(22,767) | $(21,760) | | Gain on Disposition of Assets | $9,163 | $— | | Total Operating Income | $14,523 | $2,957 | | Net Income (Loss) Attributable to the Company | $5,842 | $(5,993) | | Basic Net Income (Loss) Attributable to Common Stockholders per share | $0.21 | $(0.32) | | Diluted Net Income (Loss) Attributable to Common Stockholders per share | $0.20 | $(0.32) | - Total revenues increased by **13.8% YoY**, driven by income properties, commercial loans, and real estate operations. Net income attributable to the Company significantly improved from a loss of **$5.993 million** in Q1 2023 to a gain of **$5.842 million** in Q1 2024, largely due to a **$9.163 million** gain on asset dispositions[38](index=38&type=chunk)[316](index=316&type=chunk) [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Consolidated Statements of Comprehensive Income Highlights (in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------------------- | :-------------------------------- | :-------------------------------- | | Net Income (Loss) Attributable to the Company | $5,842 | $(5,993) | | Cash Flow Hedging Derivative - Interest Rate Swaps | $7,513 | $(4,891) | | Total Comprehensive Income (Loss) | $13,355 | $(10,884) | - Total comprehensive income saw a substantial positive swing from a loss of **$10.884 million** in Q1 2023 to a gain of **$13.355 million** in Q1 2024, primarily due to a **$7.513 million** positive change in cash flow hedging derivatives[33](index=33&type=chunk) [Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) Consolidated Statements of Stockholders' Equity Highlights (in thousands) | Metric | Balance January 1, 2024 | Balance March 31, 2024 | | :------------------------------------- | :---------------------- | :--------------------- | | Total Stockholders' Equity | $457,526 | $462,241 | | Net Income Attributable to the Company | — | $5,842 | | Common Stock Dividends Declared | — | $(8,945) | | Other Comprehensive Income | — | $7,513 | - Total stockholders' equity increased from **$457.526 million** at January 1, 2024, to **$462.241 million** at March 31, 2024, driven by net income and other comprehensive income, partially offset by common stock dividends[42](index=42&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------------------- | :-------------------------------- | :-------------------------------- | | Net Cash Provided By Operating Activities | $11,757 | $9,327 | | Net Cash Used In Investing Activities | $(51,974) | $(25,559) | | Net Cash Provided By Financing Activities | $37,215 | $3,650 | | Net Decrease in Cash, Cash Equivalents and Restricted Cash | $(3,002) | $(12,582) | | Cash, Cash Equivalents and Restricted Cash, End of Period | $14,817 | $8,612 | - Net cash provided by operating activities increased by **$2.4 million** YoY to **$11.757 million**. Net cash used in investing activities significantly increased to **$51.974 million**, primarily due to higher acquisition activity of income properties. Net cash provided by financing activities surged to **$37.215 million**, mainly from increased net debt activity and common stock issuance[45](index=45&type=chunk)[172](index=172&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk) [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [NOTE 1. DESCRIPTION OF BUSINESS](index=10&type=section&id=NOTE%201.%20DESCRIPTION%20OF%20BUSINESS) CTO Realty Growth, Inc. is a publicly traded, self-managed equity REIT focused on owning, managing, and repositioning high-quality retail and mixed-use properties in faster-growing, business-friendly markets - CTO Realty Growth, Inc. operates as a self-managed equity REIT, primarily investing in retail and mixed-use properties in growth markets[51](index=51&type=chunk)[309](index=309&type=chunk) - As of March 31, 2024, the company's portfolio includes **20 commercial real estate properties** (**3.9 million sq ft**) in **8 states**[52](index=52&type=chunk)[282](index=282&type=chunk) - Business segments include income properties, management services (for PINE and other assets), commercial loans and investments, and real estate operations (mitigation credits, formerly subsurface interests)[52](index=52&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk)[329](index=329&type=chunk)[310](index=310&type=chunk) [NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=10&type=section&id=NOTE%202.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines significant accounting policies, including unaudited interim financial statements, consolidation principles, segment reporting, estimates, cash, derivatives, fair value, mitigation credits, interest income, receivables, purchase accounting, real estate sales, and REIT income taxes - Interim financial statements are unaudited and prepared under SEC rules and U.S. GAAP, requiring estimates and assumptions[55](index=55&type=chunk)[58](index=58&type=chunk) - The Company operates in **four primary business segments**: income properties, management services, commercial loans and investments, and real estate operations[57](index=57&type=chunk) - The Company elected REIT taxation status from December 31, 2020, and intends to maintain it, distributing at least **90%** of its taxable income[79](index=79&type=chunk)[80](index=80&type=chunk) - Fair value measurements are categorized into Level 1 (quoted prices), Level 2 (observable inputs), and Level 3 (unobservable inputs) based on U.S. GAAP hierarchy[66](index=66&type=chunk) [NOTE 3. INCOME PROPERTIES](index=18&type=section&id=NOTE%203.%20INCOME%20PROPERTIES) This note details the Company's income property segment, including leasing revenue, future base rental receipts, and acquisition/disposition activities, with Q1 2024 acquisitions totaling **$71.0 million** and a **$4.6 million** gain on disposition Leasing Revenue (in thousands) | Metric | March 31, 2024 | March 31, 2023 | | :---------------------- | :------------- | :------------- | | Lease Payments | $18,501 | $18,038 | | Variable Lease Payments | $6,122 | $4,394 | | Total Leasing Revenue | $24,623 | $22,432 | - Total leasing revenue increased by **$2.191 million** (**9.8%**) YoY, primarily due to portfolio growth and timing of acquisitions versus dispositions[318](index=318&type=chunk) - In Q1 2024, the Company acquired **two properties** for **$71.0 million** and disposed of **one mixed-use property** for **$20.0 million**, generating a **$4.6 million** gain[84](index=84&type=chunk)[85](index=85&type=chunk) [NOTE 4. COMMERCIAL LOANS AND INVESTMENTS](index=19&type=section&id=NOTE%204.%20COMMERCIAL%20LOANS%20AND%20INVESTMENTS) This note describes the Company's commercial loan and investment portfolio, which includes commercial loans and preferred equity secured by real estate, increasing to **$66.552 million** as of March 31, 2024 - Commercial loans and investments are secured by real estate or borrower's equity, with fixed or floating rates[87](index=87&type=chunk)[88](index=88&type=chunk) - In Q1 2024, a **$10.0 million** construction loan was originated (with **$6.7 million** funded), and a **$1.9 million** construction loan was repaid[90](index=90&type=chunk)[91](index=91&type=chunk) Commercial Loans and Investments Carrying Value (in thousands) | Metric | March 31, 2024 | December 31, 2023 | | :------------------------------------- | :------------- | :---------------- | | Current Face Amount | $67,475 | $62,657 | | Unaccreted Origination Fees | $(248) | $(181) | | CECL Reserve | $(675) | $(627) | | Total Commercial Loans and Investments | $66,552 | $61,849 | [NOTE 5. MANAGEMENT SERVICES BUSINESS](index=23&type=section&id=NOTE%205.%20MANAGEMENT%20SERVICES%20BUSINESS) The Company provides fee-based management services, primarily to Alpine Income Property Trust, Inc. (PINE), with Q1 2024 management fee revenue from PINE at **$1.0 million**, slightly down YoY - Management fee income is recognized over time as services are performed, primarily from managing PINE[100](index=100&type=chunk)[101](index=101&type=chunk) Management Fee Revenue from PINE (in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :---------------------- | :-------------------------------- | :-------------------------------- | | Management Fee Revenue | $1,000 | $1,100 | | Dividend Income | $600 | $600 | - The Company holds **15.7%** of PINE's outstanding equity, totaling **$35.6 million** as of March 31, 2024[105](index=105&type=chunk)[120](index=120&type=chunk) - New Portfolio Management Agreement and Subsurface Management Agreement generated less than **$0.1 million** each in Q1 2024[112](index=112&type=chunk)[114](index=114&type=chunk) [NOTE 6. REAL ESTATE OPERATIONS](index=27&type=section&id=NOTE%206.%20REAL%20ESTATE%20OPERATIONS) Real estate operations include land and development costs and mitigation credits, with Q1 2024 sales of Subsurface Interests for **$5.0 million** (a **$4.5 million** gain) and mitigation credits for **$1.0 million** (a **$0.2 million** gain) - The Company sold its remaining **352,000 acres** of Subsurface Interests for **$5.0 million**, generating a **$4.5 million** gain in Q1 2024[115](index=115&type=chunk) - **7.5 mitigation credits** were sold for **$1.0 million** in Q1 2024, resulting in a **$0.2 million** gain[119](index=119&type=chunk) Land and Development Costs (in thousands) | Metric | March 31, 2024 | December 31, 2023 | | :------------------------- | :------------- | :---------------- | | Land and Development Costs | $358 | $358 | | Subsurface Interests | $— | $373 | | Total | $358 | $731 | [NOTE 7. INVESTMENT SECURITIES](index=27&type=section&id=NOTE%207.%20INVESTMENT%20SECURITIES) This note details the Company's **$35.6 million** investment in PINE securities (15.7% of outstanding shares) as of March 31, 2024, accounted for at fair value, with changes recognized in operations - The Company's investment in PINE securities totals **$35.6 million** (**15.7%** of PINE's outstanding shares) as of March 31, 2024, and is accounted for at fair value[120](index=120&type=chunk) Available-for-Sale Securities (in thousands) | Metric | March 31, 2024 | December 31, 2023 | | :-------------------------------------- | :------------- | :---------------- | | Total Equity Securities (Fair Value) | $35,643 | $39,445 | | Unrealized Losses in Investment Income | $(8,092) | $(4,290) | - Unrealized non-cash losses on the investment in PINE were **$3.8 million** in Q1 2024 and **$4.9 million** in Q1 2023 due to decreases in PINE's stock price[167](index=167&type=chunk) [NOTE 8. FAIR VALUE OF FINANCIAL INSTRUMENTS](index=29&type=section&id=NOTE%208.%20FAIR%20VALUE%20OF%20FINANCIAL%20INSTRUMENTS) This note provides fair value measurements for financial instruments, including cash, restricted cash, commercial loans, long-term debt, and interest rate swaps, categorized by Level 1, 2, and 3 inputs Fair Value of Financial Instruments (in thousands) | Metric | March 31, 2024 Carrying Value | March 31, 2024 Estimated Fair Value | December 31, 2023 Carrying Value | December 31, 2023 Estimated Fair Value | | :------------------------------------- | :---------------------------- | :---------------------------------- | :------------------------------- | :----------------------------------- | | Cash and Cash Equivalents - Level 1 | $6,760 | $6,760 | $10,214 | $10,214 | | Restricted Cash - Level 1 | $8,057 | $8,057 | $7,605 | $7,605 | | Commercial Loans and Investments - Level 2 | $66,552 | $68,156 | $61,849 | $63,261 | | Long-Term Debt - Level 2 | $542,020 | $523,310 | $495,370 | $473,807 | Fair Value of Cash Flow Hedges (Level 2 Inputs, in thousands) | Hedged Item | March 31, 2024 Fair Value | December 31, 2023 Fair Value | | :------------------------------------ | :------------------------ | :--------------------------- | | 2026 Term Loan Interest Rate Swaps | $3,491 | $2,813 | | 2027 Term Loan Interest Rate Swaps | $7,170 | $5,759 | | 2028 Term Loan Interest Rate Swaps | $372 | $(1,994) | | Credit Facility Interest Rate Swaps | $3,371 | $313 | [NOTE 9. INTANGIBLE ASSETS AND LIABILITIES](index=31&type=section&id=NOTE%209.%20INTANGIBLE%20ASSETS%20AND%20LIABILITIES) This note details intangible assets and liabilities, primarily related to leases, with net intangible lease assets increasing to **$101.039 million** and net amortization of **$5.007 million** for Q1 2024 Intangible Assets and Liabilities (in thousands) | Metric | March 31, 2024 | December 31, 2023 | | :-------------------------------------- | :------------- | :---------------- | | Sub-total Intangible Lease Assets—Net | $101,039 | $97,109 | | Sub-total Intangible Lease Liabilities—Net | $(14,353) | $(10,441) | | Total Intangible Assets and Liabilities—Net | $86,686 | $86,668 | Net Amortization of Intangible Assets and Liabilities (in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------------------- | :-------------------------------- | :-------------------------------- | | Amortization Expense | $4,533 | $4,391 | | Accretion to Income Properties Revenue | $474 | $679 | | Net Amortization | $5,007 | $5,070 | - The weighted average amortization period for total intangible assets and liabilities was **6.0 years** and **5.6 years**, respectively, as of March 31, 2024[129](index=129&type=chunk) [NOTE 10. PROVISION FOR IMPAIRMENT](index=33&type=section&id=NOTE%2010.%20PROVISION%20FOR%20IMPAIRMENT) This note addresses impairment assessments for long-lived assets and commercial loans, with no income property impairment in Q1 2024, but **$0.05 million** in credit loss impairment charges for commercial loans - No impairment charges were recorded on income property portfolio in Q1 2024 or Q1 2023[132](index=132&type=chunk)[193](index=193&type=chunk) - Impairment charges for credit losses on commercial loans and investments were **$0.05 million** in Q1 2024, down from **$0.5 million** in Q1 2023[134](index=134&type=chunk)[193](index=193&type=chunk) [NOTE 11. OTHER ASSETS](index=33&type=section&id=NOTE%2011.%20OTHER%20ASSETS) This note provides a breakdown of other assets, including tenant receivables, straight-line rent adjustments, leasing commissions, cash flow hedge assets, and infrastructure receivables, totaling **$37.964 million** at March 31, 2024 Other Assets (in thousands) | Metric | March 31, 2024 | December 31, 2023 | | :---------------------------------------------- | :------------- | :---------------- | | Income Property Tenant Receivables, Net | $4,620 | $4,568 | | Income Property Straight-line Rent Adjustment | $6,591 | $6,033 | | Cash Flow Hedge - Interest Rate Swap | $15,954 | $11,770 | | Due from Alpine Income Property Trust, Inc. | $1,395 | $1,395 | | Total Other Assets | $37,964 | $34,953 | - Cash Flow Hedge - Interest Rate Swap asset increased significantly from **$11.770 million** to **$15.954 million**[139](index=139&type=chunk) [NOTE 12. EQUITY](index=33&type=section&id=NOTE%2012.%20EQUITY) This note details equity activities, including a **$500.0 million** shelf registration, a **$150.0 million** ATM program (with **$2.1 million** net proceeds from Q1 2024 sales), and Series A Preferred Stock issuance - The Company has a **$500.0 million** shelf registration statement (2022 Registration Statement) for potential future equity and debt offerings[141](index=141&type=chunk) - Under the **$150.0 million** 2022 ATM Program, **125,857 common shares** were sold in Q1 2024 for **$2.1 million** net proceeds, with **$135.6 million** remaining availability[144](index=144&type=chunk)[178](index=178&type=chunk) - The **6.375% Series A Cumulative Redeemable Preferred Stock**, issued in 2021, has no maturity date and ranks senior to common stock[145](index=145&type=chunk)[146](index=146&type=chunk) [NOTE 13. COMMON STOCK AND EARNINGS PER SHARE](index=37&type=section&id=NOTE%2013.%20COMMON%20STOCK%20AND%20EARNINGS%20PER%20SHARE) This note details common stock, dividends, and EPS calculations, with Q1 2024 basic EPS at **$0.21** (up from $(0.32)) and diluted EPS at **$0.20** (up from $(0.32)), including dilutive 2025 Convertible Senior Notes Dividends Declared and Paid (in thousands, except per share data) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Series A Preferred Stock Dividends| $1,187 | $1,195 | | Series A Preferred Stock Per Share| $0.40 | $0.40 | | Common Stock Dividends | $8,601 | $8,658 | | Common Stock Per Share | $0.38 | $0.38 | Basic and Diluted Earnings Per Share (in thousands, except per share data) | Metric | March 31, 2024 | March 31, 2023 | | :---------------------------------------------- | :------------- | :------------- | | Net Income (Loss) Attributable to Common Stockholders, Used in Basic EPS | $4,655 | $(7,188) | | Basic EPS | $0.21 | $(0.32) | | Diluted EPS | $0.20 | $(0.32) | | Weighted Average Shares Outstanding, Diluted | 26,057,652 | 22,704,829 | - Diluted EPS for Q1 2024 includes **3.5 million** potentially dilutive shares from the 2025 Notes using the if-converted method, which were anti-dilutive in Q1 2023[187](index=187&type=chunk)[363](index=363&type=chunk) [NOTE 14. SHARE REPURCHASES](index=39&type=section&id=NOTE%2014.%20SHARE%20REPURCHASES) This note details common and preferred stock repurchase programs, with **40,726 common shares** repurchased for **$0.7 million** in Q1 2024 under the December 2023 program, leaving **$4.3 million** available - The Company repurchased **40,726 common shares** for **$0.7 million** (average **$16.28/share**) in Q1 2024 under the December 2023 **$5.0 Million** Common Stock Repurchase Program[216](index=216&type=chunk)[349](index=349&type=chunk) - **$4.3 million** remained available under the December 2023 Common Stock Repurchase Program as of March 31, 2024[216](index=216&type=chunk)[342](index=342&type=chunk) - No Series A Preferred Stock was repurchased in Q1 2024 or Q1 2023 under the **$3.0 million** Series A Preferred Stock Repurchase Program[217](index=217&type=chunk) [NOTE 15. LONG-TERM DEBT](index=41&type=section&id=NOTE%2015.%20LONG-TERM%20DEBT) This note provides a comprehensive overview of the Company's long-term debt, including its Credit Facility, mortgage notes, and convertible senior notes, totaling **$543.334 million** outstanding as of March 31, 2024 Outstanding Indebtedness (Face Value, in thousands) | Debt Type | Face Value | Maturity Date | Interest Rate | | :---------------------------------------- | :--------- | :------------ | :------------ | | Credit Facility | $209,500 | January 2027 | SOFR + 0.10% + [1.25% - 2.20%] | | 2026 Term Loan | $65,000 | March 2026 | SOFR + 0.10% + [1.25% - 2.20%] | | 2027 Term Loan | $100,000 | January 2027 | SOFR + 0.10% + [1.25% - 2.20%] | | 2028 Term Loan | $100,000 | January 2028 | SOFR + 0.10% + [1.20% - 2.15%] | | 3.875% Convertible Senior Notes due 2025 | $51,034 | April 2025 | 3.875% | | Mortgage Note Payable | $17,800 | August 2026 | 4.060% | | Total Long-Term Face Value Debt | $543,334 | | | - The Credit Facility had a **$209.5 million** balance outstanding and **$90.5 million** undrawn commitment as of March 31, 2024[197](index=197&type=chunk)[225](index=225&type=chunk) Interest Expense (in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------------------- | :-------------------------------- | :-------------------------------- | | Interest Expense | $5,233 | $4,352 | | Amortization of Deferred Financing Costs| $256 | $241 | | Amortization of Discount on Convertible Notes | $40 | $39 | | Total Interest Expense | $5,529 | $4,632 | - Total interest expense increased by **$0.9 million** YoY, primarily due to a higher outstanding balance on the Credit Facility[169](index=169&type=chunk) [NOTE 16. INTEREST RATE SWAPS](index=49&type=section&id=NOTE%2016.%20INTEREST%20RATE%20SWAPS) The Company uses interest rate swap agreements to hedge against fluctuating interest rates on its variable-rate debt, which were **100% effective** in Q1 2024 and Q1 2023, with fair value changes in accumulated other comprehensive income - Interest rate swaps are used to hedge against variable interest rate risk on debt, including the Credit Facility and term loans[258](index=258&type=chunk) - All interest rate agreements were **100% effective** during Q1 2024 and Q1 2023, with fair value changes recorded in accumulated other comprehensive income[258](index=258&type=chunk) Interest Rate Swap Agreements Fair Value (in thousands) | Hedged Item | Fair Value as of March 31, 2024 | | :---------------- | :------------------------------ | | 2026 Term Loan | $2,862, $1,066, $(437) | | 2027 Term Loan | $7,717, $(547) | | 2028 Term Loan | $474, $464, $(566) | | Credit Facility | $1,540, $1,036, $451, $344 | [NOTE 17. ACCRUED AND OTHER LIABILITIES](index=51&type=section&id=NOTE%2017.%20ACCRUED%20AND%20OTHER%20LIABILITIES) This note details accrued and other liabilities, including property taxes, tenant improvements, construction costs, interest, environmental reserves, and cash flow hedge liabilities, totaling **$14.541 million** at March 31, 2024 Accrued and Other Liabilities (in thousands) | Metric | March 31, 2024 | December 31, 2023 | | :-------------------------------------- | :------------- | :---------------- | | Accrued Property Taxes | $2,973 | $2,090 | | Reserve for Tenant Improvements | $1,295 | $1,168 | | Accrued Construction Costs | $450 | $1,170 | | Accrued Interest | $1,330 | $773 | | Cash Flow Hedge - Interest Rate Swaps | $1,550 | $4,879 | | Total Accrued and Other Liabilities | $14,541 | $18,373 | - Cash Flow Hedge - Interest Rate Swaps liability decreased significantly from **$4.879 million** to **$1.550 million**[260](index=260&type=chunk) [NOTE 18. DEFERRED REVENUE](index=51&type=section&id=NOTE%2018.%20DEFERRED%20REVENUE) This note outlines deferred revenue components, primarily prepaid rent, interest reserves from commercial loans, and tenant contributions, totaling **$5.290 million** at March 31, 2024 Deferred Revenue (in thousands) | Metric | March 31, 2024 | December 31, 2023 | | :-------------------------------------- | :------------- | :---------------- | | Prepaid Rent | $3,291 | $3,723 | | Interest Reserve from Commercial Loans and Investments | $1,279 | $744 | | Tenant Contributions | $720 | $733 | | Total Deferred Revenue | $5,290 | $5,200 | - Interest reserves from commercial loans and investments increased from **$0.744 million** to **$1.279 million**[238](index=238&type=chunk) [NOTE 19. STOCK-BASED COMPENSATION](index=51&type=section&id=NOTE%2019.%20STOCK-BASED%20COMPENSATION) This note details stock-based compensation plans, with total expense of **$1.387 million** in Q1 2024, and **100,391 performance shares** and **107,191 restricted shares** granted Total Cost of Share-Based Plans Charged Against Income (in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------------------- | :-------------------------------- | :-------------------------------- | | Total Cost of Share-Based Plans | $1,387 | $1,072 | - In Q1 2024, **100,391 performance shares** and **107,191 restricted shares** were granted[241](index=241&type=chunk)[291](index=291&type=chunk) - Unrecognized compensation cost for performance share awards was **$2.6 million** (**2.2 years** remaining weighted average period) and for restricted share awards was **$2.9 million** (**2.1 years** remaining weighted average period) as of March 31, 2024[263](index=263&type=chunk)[292](index=292&type=chunk) [NOTE 20. INCOME TAXES](index=55&type=section&id=NOTE%2020.%20INCOME%20TAXES) This note explains the Company's REIT tax status from December 31, 2020, requiring **90%** taxable income distribution, with non-REIT operations held in Taxable REIT Subsidiaries (TRSs) subject to corporate income tax - The Company elected REIT status for U.S. federal income tax purposes starting December 31, 2020, requiring distribution of at least **90%** of taxable income[295](index=295&type=chunk)[360](index=360&type=chunk) - Non-REIT assets and operations are held in TRSs, which are subject to corporate income tax. As of January 1, 2024, the Company consolidated its TRSs into a single entity[295](index=295&type=chunk)[80](index=80&type=chunk) - The Company uses 1031 Exchanges or other deferred tax structures to mitigate built-in gain tax liability on asset sales within the **5-year** post-REIT conversion period[297](index=297&type=chunk) [NOTE 21. COMMITMENTS AND CONTINGENCIES](index=57&type=section&id=NOTE%2021.%20COMMITMENTS%20AND%20CONTINGENCIES) This note addresses legal proceedings, which are not expected to materially affect financial condition, and **$17.019 million** in remaining capital improvement commitments expected within **twelve months** - The Company does not expect current legal proceedings to have a material effect on its financial condition or results of operations[271](index=271&type=chunk)[340](index=340&type=chunk) Contractual Commitments – Capital Expenditures (in thousands) | Metric | As of March 31, 2024 | | :------------------------- | :------------------- | | Total Commitment | $21,227 | | Less Amount Funded | $(4,208) | | Remaining Commitment | $17,019 | - Remaining commitment of **$17.019 million** for capital improvements is expected to be completed within **twelve months**[179](index=179&type=chunk)[301](index=301&type=chunk) [NOTE 22. BUSINESS SEGMENT DATA](index=57&type=section&id=NOTE%2022.%20BUSINESS%20SEGMENT%20DATA) This note provides financial data by business segment, with income properties being the largest, accounting for **90%** of identifiable assets and **87.5%** of consolidated revenues in Q1 2024 - The Company operates in **four primary business segments**: income properties, management services, commercial loans and investments, and real estate operations[300](index=300&type=chunk) - Income properties accounted for **90%** of identifiable assets and **87.5%** of consolidated revenues in Q1 2024[300](index=300&type=chunk) Segment Revenues and Operating Income (in thousands) | Segment | Q1 2024 Revenues | Q1 2023 Revenues | Q1 2024 Operating Income | Q1 2023 Operating Income | | :----------------------------- | :--------------- | :--------------- | :----------------------- | :----------------------- | | Income Properties | $24,623 | $22,432 | $17,870 | $15,279 | | Management Fee Income | $1,105 | $1,098 | $1,105 | $1,098 | | Interest Income From Commercial Loans and Investments | $1,351 | $795 | $1,351 | $795 | | Real Estate Operations | $1,048 | $392 | $229 | $307 | | Total Revenues | $28,127 | $24,717 | | | | Total Operating Income | | | $14,523 | $2,957 | [NOTE 23. SUBSEQUENT EVENTS](index=60&type=section&id=NOTE%2023.%20SUBSEQUENT%20EVENTS) This note discloses subsequent events evaluated through May 2, 2024, including a follow-on public offering of **1,718,417 Series A Preferred Stock shares** on April 11, 2024, generating **$33.1 million** in net proceeds - Subsequent events were evaluated through May 2, 2024[325](index=325&type=chunk) - On April 11, 2024, the Company completed a public offering of **1,718,417 Series A Preferred Stock shares**, yielding **$33.1 million** in net proceeds[358](index=358&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=61&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and results of operations for Q1 2024, covering forward-looking statements, business overview, segment comparisons, liquidity, non-U.S. GAAP measures, and critical accounting estimates [Forward-Looking Statements](index=61&type=section&id=Forward-Looking%20Statements) - The report contains forward-looking statements based on present expectations and assumptions, subject to material differences from actual results due to various risks and uncertainties[326](index=326&type=chunk) - Key risks include those related to commercial real estate ownership, tenant performance, e-commerce competition, acquisition challenges, revenue loss, management fees from PINE, conflicts of interest with PINE, economic downturns, credit risk in commercial loans, illiquidity of real estate investments, 1031 exchange effectiveness, capital access, debt servicing, natural disasters, and maintaining REIT qualification[326](index=326&type=chunk)[308](index=308&type=chunk) [OVERVIEW](index=63&type=section&id=OVERVIEW) - CTO Realty Growth, Inc. is a self-managed equity REIT focused on high-quality retail and mixed-use properties in growth markets, pursuing investment through fee simple ownership, commercial loans, and preferred equity[309](index=309&type=chunk) - The investment strategy emphasizes long-term real estate fundamentals, target markets with strong demographics, and evaluation of property attributes, tenant creditworthiness, and market conditions[313](index=313&type=chunk) - The Company's portfolio includes **14 multi-tenant properties** (**$75.0 million** annualized revenue, **5.2 years** weighted average lease term) and **6 single-tenant properties** (**$5.6 million** annualized revenue, **6.0 years** weighted average lease term) as of March 31, 2024[314](index=314&type=chunk) - The investment strategy is focused on multi-tenant, primarily retail-oriented, properties due to the ROFO Agreement with PINE, which generally prevents investment in single-tenant net lease properties[333](index=333&type=chunk) [COMPARISON OF THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023](index=65&type=section&id=COMPARISON%20OF%20THE%20THREE%20MONTHS%20ENDED%20MARCH%2031%2C%202024%20AND%202023) [Revenue](index=65&type=section&id=Revenue) Total Revenue by Operating Segment (in thousands) | Operating Segment | March 31, 2024 | March 31, 2023 | Variance | % Variance | | :-------------------------------- | :------------- | :------------- | :------- | :--------- | | Income Properties | $24,623 | $22,432 | $2,191 | 9.8% | | Management Services | $1,105 | $1,098 | $7 | 0.6% | | Commercial Loans and Investments | $1,351 | $795 | $556 | 69.9% | | Real Estate Operations | $1,048 | $392 | $656 | 167.3% | | Total Revenue | $28,127 | $24,717 | $3,410 | 13.8% | - Total revenue increased by **$3.4 million** (**13.8%**) YoY, primarily due to increased income from recent income property acquisitions, commercial loans, and mitigation credit sales[316](index=316&type=chunk) [Income Properties](index=67&type=section&id=Income%20Properties) - Income property revenues increased by **$2.2 million** (**9.8%**) to **$24.6 million** in Q1 2024, driven by portfolio growth and acquisition timing[318](index=318&type=chunk) - Operating income from income properties increased by **$2.6 million** to **$17.9 million**, reflecting higher rent revenues and a **$0.4 million** decrease in direct costs[318](index=318&type=chunk) [Management Services](index=67&type=section&id=Management%20Services) - Management fee revenue from PINE decreased slightly to **$1.0 million** in Q1 2024 from **$1.1 million** in Q1 2023 due to a decrease in PINE's total equity[319](index=319&type=chunk) - New Portfolio Management and Subsurface Management Agreements each contributed less than **$0.1 million** in revenue in Q1 2024[319](index=319&type=chunk) [Commercial Loans and Investments](index=67&type=section&id=Commercial%20Loans%20and%20Investments) - Interest income from commercial loans and investments increased by **$0.6 million** (**69.9%**) to **$1.4 million** in Q1 2024, primarily due to new loan originations in late 2023 and Q1 2024[151](index=151&type=chunk)[317](index=317&type=chunk) [Real Estate Operations](index=67&type=section&id=Real%20Estate%20Operations) - Operating income from real estate operations decreased to **$0.2 million** in Q1 2024 from **$0.3 million** in Q1 2023, despite higher revenues[152](index=152&type=chunk) - Mitigation credit sales revenue increased by **$0.9 million** YoY, partially offset by a **$0.2 million** reduction in subsurface sales revenue[152](index=152&type=chunk) [General and Administrative Expenses](index=67&type=section&id=General%20and%20Administrative%20Expenses) General and Administrative Expenses (in thousands) | Metric | March 31, 2024 | March 31, 2023 | Variance | % Variance | | :-------------------------------------- | :------------- | :------------- | :------- | :--------- | | Recurring General and Administrative Expenses | $2,829 | $2,655 | $174 | 6.6% | | Non-Cash Stock Compensation | $1,387 | $1,072 | $315 | 29.4% | | Total General and Administrative Expenses | $4,216 | $3,727 | $489 | 13.1% | - Total general and administrative expenses increased by **$0.489 million** (**13.1%**) YoY, mainly due to higher employee count from increased managed income property assets and increased non-employee director compensation[189](index=189&type=chunk)[211](index=211&type=chunk) [Depreciation and Amortization](index=68&type=section&id=Depreciation%20and%20Amortization) - Depreciation and amortization increased by **$0.6 million** to **$10.9 million** in Q1 2024, reflecting the overall growth of the Company's income property portfolio[190](index=190&type=chunk) [Gain on Disposition of Assets and Provision for Impairment](index=69&type=section&id=Gain%20on%20Disposition%20of%20Assets%20and%20Provision%20for%20Impairment) - In Q1 2024, the Company recognized a **$4.6 million** gain from selling a mixed-use income property for **$20.0 million** and a **$4.5 million** gain from selling Subsurface Interests for **$5.0 million**[192](index=192&type=chunk) - Impairment charges for credit losses on commercial loans and investments decreased to **$0.05 million** in Q1 2024 from **$0.5 million** in Q1 2023[193](index=193&type=chunk) [Investment and Other Income (Loss)](index=69&type=section&id=Investment%20and%20Other%20Income%20%28Loss%29) - Unrealized non-cash losses on the investment in PINE were **$3.8 million** in Q1 2024 and **$4.9 million** in Q1 2023 due to decreases in PINE's stock price[167](index=167&type=chunk) - Dividend income from the investment in PINE remained stable at **$0.6 million** in both Q1 2024 and Q1 2023[168](index=168&type=chunk) [Interest Expense](index=69&type=section&id=Interest%20Expense) - Interest expense increased by **$0.9 million** to **$5.5 million** in Q1 2024, primarily due to a higher outstanding balance on the Company's Credit Facility[169](index=169&type=chunk) [Net Income (Loss) Attributable to the Company](index=69&type=section&id=Net%20Income%20%28Loss%29%20Attributable%20to%20the%20Company) - Net income attributable to the Company significantly increased by **$11.8 million**, from a loss of **$6.0 million** in Q1 2023 to a gain of **$5.8 million** in Q1 2024, mainly driven by **$9.2 million** in gains on asset dispositions[170](index=170&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=70&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) - Cash and cash equivalents totaled **$6.8 million**, and restricted cash totaled **$8.1 million** at March 31, 2024[171](index=171&type=chunk) - Net cash provided by operating activities increased by **$2.4 million** to **$11.7 million** in Q1 2024, driven by income property portfolio growth and commercial loans and investments[172](index=172&type=chunk) - Net cash used in investing activities increased by **$26.4 million** to **$52.0 million** in Q1 2024, primarily due to increased income property acquisition activity[195](index=195&type=chunk)[196](index=196&type=chunk) - Net cash provided by financing activities increased by **$33.6 million** to **$37.2 million** in Q1 2024, mainly from increased net debt activity and common stock issuance[175](index=175&type=chunk) - The Company expects to fund 2024 investments (**$100.0 million** to **$150.0 million**) using cash on hand, operations, 1031 like-kind exchanges, Credit Facility borrowings, and additional financing[177](index=177&type=chunk) - As of March 31, 2024, the Company had **$135.6 million** available under the 2022 ATM Program and **$90.5 million** undrawn commitment under the **$300.0 million** Credit Facility[153](index=153&type=chunk)[197](index=197&type=chunk) [Non-U.S. GAAP Financial Measures](index=74&type=section&id=Non-U.S.%20GAAP%20Financial%20Measures) The Company discloses non-U.S. GAAP financial measures: FFO, Core FFO, and AFFO, widely used in the REIT industry for performance comparison and better assessment of operating performance - The Company discloses non-U.S. GAAP financial measures: Funds From Operations (FFO), Core Funds From Operations (Core FFO), and Adjusted Funds From Operations (AFFO), which are widely used in the REIT industry for performance comparison[159](index=159&type=chunk) - FFO is defined by NAREIT, excluding real estate depreciation/amortization and net gains/losses on sales. Core FFO and AFFO include further adjustments for non-cash items to better assess operating performance[185](index=185&type=chunk) Non-U.S. GAAP Measures Attributable to Common Stockholders (in thousands, except per share data) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------------------- | :-------------------------------- | :-------------------------------- | | FFO Attributable to Common Stockholders | $10,797 | $8,188 | | FFO Attributable to Common Stockholders per Common Diluted Share | $0.41 | $0.36 | | Core FFO Attributable to Common Stockholders | $10,737 | $8,867 | | Core FFO Attributable to Common Stockholders per Common Diluted Share | $0.48 | $0.39 | | AFFO Attributable to Common Stockholders | $11,648 | $9,863 | | AFFO Attributable to Common Stockholders per Common Diluted Share | $0.52 | $0.43 | - FFO, Core FFO, and AFFO per diluted common share all increased YoY, indicating improved operating performance[186](index=186&type=chunk) [CRITICAL ACCOUNTING ESTIMATES](index=77&type=section&id=CRITICAL%20ACCOUNTING%20ESTIMATES) This note identifies Purchase Accounting for Acquisitions of Real Estate Subject to a Lease as the most significant critical accounting estimate, involving fair value allocation to tangible and intangible assets/liabilities - The most significant critical accounting estimate is Purchase Accounting for Acquisitions of Real Estate Subject to a Lease, involving fair value allocation to tangible and intangible assets/liabilities[150](index=150&type=chunk) - Assumptions for fair value allocation are based on market information, including replacement cost, land values, and discounted cash flow models, and are subject to uncertainty[150](index=150&type=chunk) - Acquisitions subject to this estimate totaled **$71.0 million** in Q1 2024 and **$3.3 million** in Q1 2023[150](index=150&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=78&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses the Company's exposure to market risks, primarily interest rate risk related to its variable-rate debt, mitigated by interest rate swap agreements, with a **$0.6 million** impact from a hypothetical **100 basis point** interest rate change - The primary market risk is interest rate risk related to variable-rate debt, particularly the Credit Facility[338](index=338&type=chunk)[339](index=339&type=chunk) - Interest rate swap agreements are utilized to hedge against fluctuating interest rates, minimizing exposure to changes in interest rates[339](index=339&type=chunk) - A hypothetical **100 basis point** (**1%**) change in interest rates would impact financial position, results of operations, and cash flows by **$0.6 million** as of March 31, 2024[339](index=339&type=chunk) [Item 4. Controls and Procedures](index=78&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the Company's disclosure controls and procedures as of March 31, 2024, with no material changes in internal control over financial reporting during Q1 2024 - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of March 31, 2024[323](index=323&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended March 31, 2024[323](index=323&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=78&type=section&id=Item%201.%20Legal%20Proceedings) This section states that the Company may be involved in legal proceedings incidental to its normal business operations, but these are not expected to have a material effect on its financial condition or results of operations - The Company may be party to legal proceedings in the normal course of business[340](index=340&type=chunk) - No material effect on financial condition or results of operations is expected from these legal proceedings[340](index=340&type=chunk) [Item 1A. Risk Factors](index=78&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the Company's Annual Report on Form 10-K for a comprehensive discussion of potential risks and uncertainties, with no material changes as of March 31, 2024 - For a discussion of potential risks and uncertainties, refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2023[324](index=324&type=chunk) - As of March 31, 2024, there were no material changes in risk factors from those set forth in the 2023 Annual Report on Form 10-K[341](index=341&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=80&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the Company's common stock repurchase activity, with **40,726 shares** repurchased for **$0.7 million** in Q1 2024 under the December 2023 program, leaving **$4.3 million** available Common Stock Repurchases (Three Months Ended March 31, 2024) | Period | Total Number of Shares Purchased | Average Price per Share | Maximum Dollar Value Remaining Under Program ($000's) | | :----------------------- | :------------------------------- | :---------------------- | :---------------------------------------------------- | | 1/1/2024 - 1/31/2024 | — | $— | $5,000 | | 2/1/2024 - 2/29/2024 | 40,726 | $16.28 | $4,337 | | 3/1/2024 - 3/31/2024 | — | $— | — | | Total | 40,726 | $16.28 | | - As of March 31, 2024, **$4.3 million** remained available under the December 2023 **$5.0 Million** Common Stock Repurchase Program[342](index=342&type=chunk) [Item 3. Defaults Upon Senior Securities](index=80&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there are no defaults upon senior securities to report - Not applicable, implying no defaults upon senior securities[343](index=343&type=chunk) [Item 4. Mine Safety Disclosures](index=80&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that there are no mine safety disclosures to report - Not applicable, implying no mine safety disclosures[343](index=343&type=chunk) [Item 5. Other Information](index=80&type=section&id=Item%205.%20Other%20Information) This section states that there is no other information to report - Not applicable, implying no other information to report[343](index=343&type=chunk) [Item 6. Exhibits](index=81&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Quarterly Report on Form 10-Q, including articles of amendment, bylaws, specimen stock certificates, and certifications required by the Sarbanes-Oxley Act - Exhibits include organizational documents (Articles of Amendment, Bylaws), specimen stock certificates, and certifications (Section 302 and 906 of Sarbanes-Oxley Act)[344](index=344&type=chunk) - XBRL (eXtensible Business Reporting Language) documents are also included as exhibits for financial data tagging[344](index=344&type=chunk) [SIGNATURES](index=82&type=section&id=SIGNATURES) - The report is signed by John P. Albright, President and Chief Executive Officer, and Lisa M. Vorakoun, Senior Vice President and Chief Accounting Officer and Interim Chief Financial Officer and Treasurer, on May 2, 2024[355](index=355&type=chunk)

[First Quarter 2024 Highlights](index=1&type=section&id=First%20Quarter%20and%20Recent%20Highlights) CTO Realty Growth reported strong Q1 2024 results, featuring financial growth, strategic investments, and positive leasing momentum Q1 2024 Key Performance Indicators | Metric | Value | Change (YoY) | | :--- | :--- | :--- | | Net Income per Diluted Share | $0.20 | From ($0.32) | | Core FFO per Diluted Share | $0.48 | +23.1% | | AFFO per Diluted Share | $0.52 | +20.9% | | Same-Property NOI | $15.1M | +6.0% | | Leased Occupancy | 94.3% | +1.0% (QoQ) | - Invested **$71.0 million** in two retail properties at a weighted-average going-in cash cap rate of **8.0%**[3](index=3&type=chunk) - Sold one property for **$20.0 million** at an **8.2%** exit cap rate, generating a **$4.6 million** gain[10](index=10&type=chunk) - Signed 15 comparable leases resulting in a **68.2%** increase in comparable rent per square foot[4](index=4&type=chunk) - Increased the midpoint of full-year Core FFO and AFFO per diluted share guidance by **2.5%** and **2.3%**, respectively[13](index=13&type=chunk) [CEO Comments](index=3&type=section&id=CEO%20Comments) CEO John P. Albright highlighted strong Q1 acquisitions and sales, attributing increased full-year guidance to positive leasing and NOI growth - Highlighted strong acquisition activity, including the **$68.7 million** Marketplace at Seminole Towne Center in Orlando, Florida[15](index=15&type=chunk) - Increased full-year **Core FFO** and **AFFO** guidance due to positive leasing momentum and strong Same-Property NOI growth[15](index=15&type=chunk) - Noted that over **200,000 square feet** of new leases were signed in the last six months, contributing to the positive outlook[15](index=15&type=chunk) [Quarterly Financial Results](index=3&type=section&id=Quarterly%20Financial%20Results%20Highlights) The company reported significant year-over-year financial improvement in Q1 2024, with net income turning positive and strong FFO/AFFO growth Q1 2024 vs Q1 2023 Financial Results (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | Variance | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Income Attributable to Common Stockholders | $4,655 | $(7,188) | $11,843 | 164.8% | | Net Income per Diluted Share | $0.20 | $(0.32) | $0.52 | 162.5% | | Core FFO per Common Share – Diluted | $0.48 | $0.39 | $0.09 | 23.1% | | AFFO per Common Share – Diluted | $0.52 | $0.43 | $0.09 | 20.9% | [Portfolio and Operational Activities](index=3&type=section&id=Portfolio%20and%20Operational%20Activities) CTO actively managed its portfolio in Q1 2024 through strategic investments, dispositions, and robust leasing, boosting occupancy and rent growth [Investments and Dispositions](index=3&type=section&id=Investments%20and%20Dispositions) In Q1 2024, CTO invested **$71.0 million** in retail properties and originated a **$10.0 million** loan, while disposing of a mixed-use property for **$20.0 million** - Acquired two retail properties for **$71.0 million**, including the **$68.7 million** Marketplace at Seminole Towne Center in Orlando, Florida[17](index=17&type=chunk) - Originated a **$10.0 million** first mortgage retail development loan in Florida at a fixed interest rate of **11.0%**[20](index=20&type=chunk) - Sold a mixed-use property in Santa Fe, New Mexico for **$20.0 million**, generating a gain of **$4.6 million**[21](index=21&type=chunk) [Portfolio Summary](index=5&type=section&id=Portfolio%20Summary) As of March 31, 2024, CTO's portfolio comprised 20 properties totaling **3.9 million** square feet, with **94.3%** leased occupancy, primarily retail-focused Portfolio Composition by Property Type (as of March 31, 2024) | Property Type | of Properties | Square Feet (thousands) | % of Cash Base Rent | | :--- | :--- | :--- | :--- | | Retail | 15 | 2,467 | 62.1% | | Office | 1 | 210 | 4.7% | | Mixed-Use | 4 | 1,218 | 33.2% | | **Total** | **20** | **3,895** | **100%** | - Portfolio leased occupancy was **94.3%** and physical occupancy was **92.6%** as of March 31, 2024[23](index=23&type=chunk) [Same-Property Net Operating Income (NOI)](index=5&type=section&id=Same%20Property%20Net%20Operating%20Income) Same-Property NOI increased by **6.0%** to **$15.1 million** in Q1 2024, driven by strong growth in both single-tenant and multi-tenant portfolios Same-Property NOI Growth (Q1 2024 vs Q1 2023, in thousands) | Portfolio Segment | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Single Tenant | $1,148 | $949 | 21.0% | | Multi-Tenant | $13,966 | $13,305 | 5.0% | | **Total** | **$15,114** | **$14,254** | **6.0%** | [Leasing Activity](index=6&type=section&id=Leasing%20Activity) In Q1 2024, CTO signed 19 leases totaling **104,114 square feet**, with comparable leases showing a significant **68.2%** increase in average cash base rent - On a comparable basis, 15 leases were signed totaling **94,699 sq. ft.** at an average cash base rent of **$26.09/sq. ft.**, representing a **68.2%** growth over the previous rent of **$15.51/sq. ft.**[27](index=27&type=chunk) Q1 2024 Leasing Summary | Lease Type | Square Feet (thousands) | Weighted Avg. Lease Term | Cash Rent Per Sq. Ft. | | :--- | :--- | :--- | :--- | | New Leases | 70 | 12.4 years | $26.09 | | Renewals & Extensions | 34 | 3.8 years | $29.26 | | **Total / Weighted Avg.** | **104** | **9.4 years** | **$27.12** | [Other Activities](index=6&type=section&id=Subsurface%20Interests%20and%20Mitigation%20Credits) CTO monetized non-core assets in Q1, selling subsurface rights for **$5.0 million** and mitigation credits for **$1.0 million**, generating significant gains - Sold remaining subsurface oil, gas, and mineral rights for **$5.0 million**, realizing a gain of **$4.5 million**[30](index=30&type=chunk) - Sold approximately **7.5 mitigation credits** for **$1.0 million**, resulting in a gain of **$0.2 million**[31](index=31&type=chunk) [Capital Structure and Shareholder Returns](index=6&type=section&id=Capital%20Markets%20and%20Balance%20Sheet) CTO actively managed its capital structure through share repurchases, ATM issuances, and a preferred stock offering, maintaining debt and declaring dividends [Capital Markets and Balance Sheet](index=6&type=section&id=Capital%20Markets%20and%20Balance%20Sheet%20Details) CTO managed its balance sheet in Q1 2024 through share repurchases, ATM issuances, and a preferred stock offering, with total debt at **$543.3 million** and Net Debt to Pro Forma EBITDA of **7.6x** - Subsequent to Q1, completed a public offering of Series A Preferred Stock, receiving net proceeds of **$33.1 million**[33](index=33&type=chunk) - As of March 31, 2024, Net Debt to Pro Forma EBITDA was **7.6x** and the fixed charge coverage ratio was **2.7x**[42](index=42&type=chunk) Long-Term Debt Summary (as of March 31, 2024) | Component | Principal | Interest Rate | Maturity Date | | :--- | :--- | :--- | :--- | | 2025 Convertible Senior Notes | $51.0 million | 3.875% | April 2025 | | 2026 Term Loan | $65.0 million | SOFR + 1.27% (swapped) + spread | March 2026 | | Mortgage Note | $17.8 million | 4.06% | August 2026 | | Revolving Credit Facility | $209.5 million | SOFR + spread | January 2027 | | 2027 Term Loan | $100.0 million | SOFR + 1.35% (swapped) + spread | January 2027 | | 2028 Term Loan | $100.0 million | SOFR + 3.78% (swapped) + spread | January 2028 | | **Total Debt** | **$543.3 million** | **4.52% (Weighted Avg.)** | | [Dividends](index=8&type=section&id=Dividends) The company declared Q1 2024 cash dividends of **$0.38** per common share and **$0.40** per preferred share, with a common stock dividend payout ratio of **73.1%** of AFFO - Declared a Q1 2024 cash dividend of **$0.38** per common share and **$0.40** per Series A Preferred share[37](index=37&type=chunk) - The common stock dividend payout ratio was **73.1%** of the company's Q1 2024 AFFO per diluted share[37](index=37&type=chunk) [2024 Outlook](index=8&type=section&id=2024%20Outlook) Reflecting strong Q1 performance, CTO raised its full-year 2024 guidance for **Core FFO** and **AFFO** per diluted share, with key assumptions including **Same-Property NOI** growth and year-end leased occupancy Updated Full Year 2024 Guidance (Per Diluted Share) | Metric | Low | High | | :--- | :--- | :--- | | Core FFO Per Diluted Share | $1.60 | $1.68 | | AFFO Per Diluted Share | $1.74 | $1.82 | - Key assumptions for 2024 guidance include: - Same-Property NOI growth: **2%** to **4%**[44](index=44&type=chunk) - Year-end leased occupancy: **95%** to **96%**[44](index=44&type=chunk) - Investments: **$100 million** to **$150 million** at **7.75%** - **8.25%** initial cash yield[45](index=45&type=chunk) - Dispositions: **$50 million** to **$75 million** at **7.50%** - **8.25%** exit cash yield[45](index=45&type=chunk) [Appendix: Financial Statements and Reconciliations](index=10&type=section&id=Appendix%3A%20Financial%20Statements%20and%20Reconciliations) This appendix provides definitions for non-GAAP financial measures, unaudited consolidated financial statements, and detailed reconciliations for key metrics [Consolidated Financial Statements](index=13&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited Consolidated Balance Sheets and Statements of Operations for specified periods - Presents the Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023[64](index=64&type=chunk) - Presents the Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023[69](index=69&type=chunk) [Non-GAAP Reconciliations](index=15&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of GAAP Net Income to key non-GAAP measures, including Same-Property NOI, FFO, Core FFO, AFFO, and Net Debt to Pro Forma EBITDA - Provides a reconciliation of Net Income to Same-Property NOI[72](index=72&type=chunk) - Provides a reconciliation of Net Income to FFO, Core FFO, and AFFO[75](index=75&type=chunk) - Provides a reconciliation of Net Debt to Pro Forma EBITDA[77](index=77&type=chunk)

WINTER PARK, Fla., April 04, 2024 (GLOBE NEWSWIRE) -- CTO Realty Growth, Inc. (NYSE:CTO) ("CTO" or the "Company") today announced the pricing of a public offering of 1,500,000 additional shares of the Company's 6.375% Series A Cumulative Redeemable Preferred Stock (the "Series A Preferred Stock"), liquidation preference $25.00 per share, at a public offering price of $20.00 per share. CTO will receive gross proceeds of $30,000,000 from the sale of the Series A Preferred Stock before deducting the underwrit ...

WINTER PARK, Fla., April 03, 2024 (GLOBE NEWSWIRE) -- CTO Realty Growth, Inc. (NYSE:CTO) ("CTO" or the "Company") today announced the commencement of a public offering of additional shares of the Company's 6.375% Series A Cumulative Redeemable Preferred Stock (the "Series A Preferred Stock") with a $25.00 per share liquidation preference. The additional shares of Series A Preferred Stock constitute an additional issuance of shares of Series A Preferred Stock, with 2,978,808 shares of Series A Preferred Stoc ...

WINTER PARK, Fla., March 21, 2024 (GLOBE NEWSWIRE) -- CTO Realty Growth, Inc. (NYSE:CTO) (the "Company" or "CTO") today announced the acquisition of Marketplace at Seminole Towne Center, a 318,000 square foot multi-tenant retail power center in the Sanford submarket of Orlando, Florida (the "Property") for a purchase price of $68.7 million. The purchase price represents a going-in cap rate within the range of the Company's current guidance for initial cash yields. "We are pleased to announce the acquisition ...