[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 ...

In a significant move toward portfolio optimization, CTO Realty Growth, Inc. (CTO) has successfully closed the sale of a 136,000-square-foot mixed-use property in Santa Fe, New Mexico. The transaction, valued at $20.0 million, resulted in a gain on sale of around $4.6 million.The disposition of the mixed-use property is part of a broader strategy to optimize the portfolio and enhance financial flexibility. CTO Realty Growth intends to utilize the sales proceeds as part of a Section 1031 like-kind exchange, ...

WINTER PARK, Fla., March 19, 2024 (GLOBE NEWSWIRE) -- CTO Realty Growth, Inc. (NYSE:CTO) (the "Company" or "CTO") today announced the closing of the sale of its mixed-use property totaling approximately 136,000 square feet in downtown Santa Fe, New Mexico (the "Property"). The Property was sold for approximately $20.0 million, representing an exit cap rate within the range of the Company's current guidance for disposition cash yields and generating a gain on sale of approximately $4.6 million. "In recent mo ...

CTO Realty Growth, Inc. (CTO) recently disclosed its leasing accomplishments for the year-to-date period, signifying healthy growth and promising prospects in the retail real estate sector.In a recent announcement, CTO unveiled its year-to-date leasing achievements, which include the signing of 16 leases totaling an impressive 112,480 square feet at an average cash base rent of $27.49 per square foot. Particularly noteworthy is the company's substantial comparable growth, evidenced by the signing of 12 leas ...

WINTER PARK, Fla., March 11, 2024 (GLOBE NEWSWIRE) -- CTO Realty Growth, Inc. (NYSE:CTO) (the "Company" or "CTO") today provided an update on its recent leasing activities: Year-to-date, signed 16 leases totaling 112,480 square feet at an average cash base rent of $27.49 per square foot. On a comparable basis, which excludes vacancy existing at the time of acquisition, CTO signed 12 leases totaling 103,065 square feet at an average cash base rent of $26.58 per square foot compared to a previous average cash ...

WINTER PARK, Fla., Feb. 28, 2024 (GLOBE NEWSWIRE) -- CTO Realty Growth, Inc. (NYSE:CTO) (the "Company" or "CTO") announced today that its Senior Vice President, Chief Financial Officer and Treasurer, Matthew M. Partridge, has resigned from the Company, effective as of April 1, 2024 (the "Effective Date"), to pursue another opportunity with a new venture not in the REIT industry. Following the Effective Date, Mr. Partridge intends to provide further assistance with certain needs of the Company during the Com ...

MasaoTaira Summary In our last update on CTO (NYSE:CTO), we moved the shares from a Buy to a Hold primarily due to the near-term headwinds posed by the WeWork bankruptcy. The shares had remained rangebound since the last article, and we added to our position in the low-16s. The Q4 earnings report blew past our expectations and gave us confidence that the recent headwinds are behind us. Strong leasing activity, share repurchase activity, and the sale of the remaining subsurface interests drove a meaningf ...