CTO Realty Growth, Inc. (NYSE:CTO) Q4 2022 Earnings Conference Call February 24, 2023 9:00 AM ET Company Participants Matt Partridge - Chief Financial Officer John Albright - Chief Executive Officer & President Conference Call Participants Gaurav Mehta - EF Hutton Group Rob Stevenson - Janney Floris van Dijkum - Compass Point Matthew Erdner - JonesTrading Michael Gorman - BTIG Operator Thank you for standing by, and welcome to the CTO Realty Growth Fourth Quarter and Year-End 2022 Operating Results Conferen ...

PART I [Item 1. BUSINESS](index=5&type=section&id=Item%201.%20BUSINESS) The company is a self-managed equity REIT focused on retail and mixed-use properties, with diverse business segments and a 2020 REIT conversion - CTO Realty Growth, Inc. is a **self-managed equity REIT** specializing in high-quality retail and mixed-use properties in faster-growing markets[15](index=15&type=chunk) - As of December 31, 2022, the company owned **23 commercial real estate properties** (8 single-tenant, 15 multi-tenant) across 9 states, totaling **3.7 million square feet** of leasable space[16](index=16&type=chunk) - The company's business segments include management services for PINE, commercial loan and preferred equity investments, and real estate operations (subsurface mineral interests and mitigation credits)[17](index=17&type=chunk)[18](index=18&type=chunk)[21](index=21&type=chunk) Summary of Financial Information by Business Segment (in thousands) | Segment | 2022 Revenues | 2021 Revenues | 2020 Revenues | | :--------------------------------- | :-------------- | :-------------- | :-------------- | | Income Properties | $68,857 | $50,679 | $49,953 | | Management Services | $3,829 | $3,305 | $2,744 | | Interest Income from Commercial Loans and Investments | $4,172 | $2,861 | $3,034 | | Real Estate Operations | $5,462 | $13,427 | $650 | | **Total Revenues** | **$82,320** | **$70,272** | **$56,381** | | **Segment** | **2022 Operating Income** | **2021 Operating Income** | **2020 Operating Income** | | Income Properties | $48,493 | $36,864 | $37,964 | | Management Fee Income | $3,829 | $3,305 | $2,744 | | Commercial Loans and Investments | $4,172 | $2,861 | $3,034 | | Real Estate Operations | $2,969 | $4,812 | $(2,572) | | **Total Operating Income** | **$10,667** | **$23,345** | **$12,280** | | **Segment** | **2022 Identifiable Assets** | **2021 Identifiable Assets** | **2020 Identifiable Assets** | | Income Properties | $902,427 | $630,747 | $531,325 | | Management Services | $1,370 | $1,653 | $700 | | Commercial Loans and Investments | $32,269 | $39,095 | $38,321 | | Real Estate Operations | $4,041 | $26,512 | $59,717 | | Discontinued Real Estate Operations | — | — | $833 | | Corporate and Other | $46,438 | $35,132 | $35,804 | | **Total Assets** | **$986,545** | **$733,139** | **$666,700** | - The business plan focuses on investing in **multi-tenant, retail-oriented properties** in high-growth markets, diversifying geographically, and utilizing Section 1031 like-kind exchanges for tax deferral[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) - In 2022, the company acquired **five income properties** for an aggregate acquisition cost of **$315.6 million**[31](index=31&type=chunk)[33](index=33&type=chunk) - In 2022, **six income properties were sold** for **$81.1 million**, generating aggregate gains of **$4.7 million**[34](index=34&type=chunk) Income Property Occupancy Rates (as of December 31st) | Year | Single-Tenant Economic / Physical Occupancy | Multi-Tenant Economic / Physical Occupancy | | :--- | :------------------------------------ | :----------------------------------- | | 2020 | 100% / 100% | 83% / 82% | | 2021 | 100% / 100% | 86% / 85% | | 2022 | 100% / 100% | 89% / 86% | - The company converted to a **REIT** for U.S. federal income tax purposes effective **December 31, 2020**, and reincorporated in Maryland in January 2021 to comply with REIT requirements[56](index=56&type=chunk)[57](index=57&type=chunk)[62](index=62&type=chunk) [Item 1A. RISK FACTORS](index=15&type=section&id=Item%201A.%20RISK%20FACTORS) The company faces significant risks from real estate ownership, PINE management, financial factors, REIT compliance, and the COVID-19 pandemic - Risks related to commercial real estate ownership include tenant financial hardship, local market conditions, e-commerce competition, and concentration of revenue in specific industries or geographies[12](index=12&type=chunk)[83](index=83&type=chunk)[87](index=87&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk) - Risks associated with PINE management include potential loss of fees, conflicts of interest due to shared officers and directors, and the possibility of PINE internalizing management functions[12](index=12&type=chunk)[83](index=83&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk) - Financial risks include **credit risk** from commercial loans, potential losses from borrower defaults, illiquidity of real estate investments, and challenges in obtaining debt or equity capital on favorable terms[12](index=12&type=chunk)[86](index=86&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk)[158](index=158&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk] - Risks related to **REIT qualification** include potential loss of REIT status, limitations on financial flexibility, and the requirement to distribute at least **90% of taxable income**[12](index=12&type=chunk)[86](index=86&type=chunk)[187](index=187&type=chunk)[188](index=188&type=chunk)[189](index=189&type=chunk)[190](index=190&type=chunk)[191](index=191&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk)[195](index=195&type=chunk)[196](index=196&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk)[202](index=202&type=chunk)[203](index=203&type=chunk)[205](index=205&type=chunk)[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk)[212](index=212&type=chunk)[213](index=213&type=chunk) - The **COVID-19 Pandemic** has significantly impacted global economic activity and financial markets, posing risks to tenant operations, rent payments, and access to capital[20](index=20&type=chunk)[171](index=171&type=chunk)[240](index=240&type=chunk)[241](index=241&type=chunk)[243](index=243&type=chunk)[245](index=245&type=chunk) [Item 1B. UNRESOLVED STAFF COMMENTS](index=44&type=section&id=Item%201B.%20UNRESOLVED%20STAFF%20COMMENTS) The company reported no unresolved staff comments from the SEC - There are **no unresolved staff comments**[252](index=252&type=chunk) [Item 2. PROPERTIES](index=44&type=section&id=Item%202.%20PROPERTIES) The company's principal offices are in Winter Park, Florida, owning 23 income-producing properties across 9 states, plus subsurface interests and mitigation credits - The company's principal offices are located at **369 N. New York Avenue, Suite 201, Winter Park, Florida 32789**[253](index=253&type=chunk) - As of December 31, 2022, the company owned **8 single-tenant and 15 multi-tenant properties** in 9 states, subsurface oil, gas, and mineral interests underlying **355,000 surface acres** in 19 Florida counties, and an inventory of mitigation credits[254](index=254&type=chunk) [Item 3. LEGAL PROCEEDINGS](index=44&type=section&id=Item%203.%20LEGAL%20PROCEEDINGS) The company is involved in incidental legal proceedings but does not anticipate a material effect on its financial condition or operations - The Company may be a party to certain legal proceedings incidental to the normal course of its business[255](index=255&type=chunk) - The Company does not expect these legal proceedings to have a material effect upon its financial condition or results of operations[255](index=255&type=chunk) [Item 4. MINE SAFETY DISCLOSURES](index=44&type=section&id=Item%204.%20MINE%20SAFETY%20DISCLOSURES) The company states that mine safety disclosures are not applicable to its operations - Mine safety disclosures are **not applicable**[256](index=256&type=chunk) PART II [Item 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES](index=44&type=section&id=Item%205.%20MARKET%20FOR%20REGISTRANT'S%20COMMON%20EQUITY,%20RELATED%20STOCKHOLDER%20MATTERS,%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) The company's common stock trades on the NYSE, has paid continuous dividends since 1976, and executed a stock repurchase program in 2022 - The Company's common stock trades on the NYSE under the symbol **'CTO'**[259](index=259&type=chunk) - The Company has paid dividends on a continuous basis since **1976**[259](index=259&type=chunk) Annual Dividends Per Common Share | Year Ended December 31 | Dividends Per Common Share | | :----------------------- | :------------------------- | | 2022 | $1.49 | | 2021 | $1.33 | - As of February 17, 2023, there were **458 stockholders of record**[262](index=262&type=chunk) - No unregistered sales of equity securities occurred during **2022**[263](index=263&type=chunk) - In 2022, the company repurchased **145,724 shares** of common stock for **$2.8 million** at an average price of **$19.15 per share** under its **$10.0 million** repurchase program[354](index=354&type=chunk) - On February 16, 2023, the Board approved a new common stock repurchase program for up to **$5.0 million** at an average price of **$17.00 or less per share**[355](index=355&type=chunk) [Item 6. RESERVED](index=47&type=section&id=Item%206.%20RESERVED) This item is reserved and contains no information [Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=47&type=section&id=Item%207.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section analyzes the company's financial condition and operations as a self-managed equity REIT, including historical data, non-GAAP reconciliations, and performance comparisons - The Company is a publicly traded, **self-managed equity REIT** focused on ownership, management, and repositioning of high-quality retail and mixed-use properties in faster-growing markets[269](index=269&type=chunk) - As of December 31, 2022, the company owned **23 commercial real estate properties** (8 single-tenant, 15 multi-tenant) across 9 states, totaling **3.7 million square feet** of gross leasable space[270](index=270&type=chunk) - The company's business segments include income properties, management services for PINE, commercial loans and investments, and real estate operations (subsurface mineral interests and mitigation credits)[271](index=271&type=chunk)[272](index=272&type=chunk)[275](index=275&type=chunk) Selected Historical Financial Information (in thousands, except per share amounts) | Metric | 2022 | 2021 | 2020 | 2019 | 2018 | | :------------------------------------------ | :----- | :----- | :----- | :----- | :----- | | Total Revenues | $82,320 | $70,272 | $56,381 | $44,941 | $43,658 | | Operating Income | $10,667 | $23,345 | $12,280 | $34,199 | $31,385 | | Net Income Attributable to the Company | $3,158 | $29,940 | $78,509 | $114,973 | $37,168 | | Net Income (Loss) Attributable to Common Stockholders | $(1,623) | $27,615 | $78,509 | $114,973 | $37,168 | | Basic Net Income (Loss) per Share Attributable to Common Stockholders | $(0.09) | $1.56 | $5.56 | $7.68 | $2.26 | | Diluted Net Income (Loss) per Share Attributable to Common Stockholders | $(0.09) | $1.56 | $5.56 | $7.67 | $2.24 | | Dividends Declared and Paid - Common Stock | $1.49 | $1.33 | $4.63 | $0.15 | $0.09 | | Total Assets | $986,545 | $733,139 | $666,700 | $704,194 | $556,841 | | Stockholders' Equity | $504,770 | $430,480 | $350,899 | $285,413 | $211,761 | | Long-Term Debt | $445,583 | $278,273 | $273,830 | $286,310 | $247,114 | Reconciliation of Non-U.S. GAAP Measures (in thousands) | Metric | 2022 | 2021 | 2020 | | :------------------------------------------ | :----- | :----- | :----- | | Net Income Attributable to the Company | $3,158 | $29,940 | $78,509 | | Funds from Operations (FFO) | $34,832 | $22,064 | $27,468 | | FFO Attributable to Common Stockholders | $30,051 | $19,739 | $27,468 | | Core Funds From Operations Attributable to Common Stockholders | $32,212 | $22,766 | $24,573 | | Adjusted Funds From Operations Attributable to Common Stockholders | $33,925 | $25,676 | $26,215 | | FFO Attributable to Common Stockholders per Common Share - Diluted | $1.62 | $1.12 | $1.95 | | Core FFO Attributable to Common Stockholders per Common Share - Diluted | $1.74 | $1.29 | $1.74 | | AFFO Attributable to Common Stockholders per Common Share - Diluted | $1.83 | $1.45 | $1.86 | Total Revenue by Operating Segment (in thousands) | Operating Segment | 2022 Revenue | 2021 Revenue | $ Variance (2022 vs 2021) | % Variance (2022 vs 2021) | | :--------------------------------- | :----------- | :----------- | :------------------------ | :------------------------ | | Income Properties | $68,857 | $50,679 | $18,178 | 35.9% | | Management Services | $3,829 | $3,305 | $524 | 15.9% | | Commercial Loans and Investments | $4,172 | $2,861 | $1,311 | 45.8% | | Real Estate Operations | $5,462 | $13,427 | $(7,965) | (59.3)% | | **Total Revenue** | **$82,320** | **$70,272** | **$12,048** | **17.1%** | - Total revenue increased by **$12.0 million (17.1%)** in 2022 compared to 2021, primarily due to increased income property acquisitions and higher management fees, partially offset by a decrease in real estate operations revenue from a non-recurring land sale in 2021[292](index=292&type=chunk) - Net income attributable to the Company decreased from **$29.9 million** in 2021 to **$3.2 million** in 2022, primarily due to a **$11.9 million loss** on the sale of the Mitigation Bank in 2022, compared to **$28.2 million** in aggregate gains from property dispositions in 2021, and a **$17.6 million impairment charge** in 2021 related to the Land JV[300](index=300&type=chunk)[303](index=303&type=chunk)[304](index=304&type=chunk)[310](index=310&type=chunk) - Cash flows from operating activities increased by **$28.5 million** to **$56.1 million** in 2022, driven by growth in the income property portfolio and proceeds from the Mitigation Bank sale[342](index=342&type=chunk) - Cash flows used in investing activities increased by **$164.6 million** to **$267.6 million** in 2022, mainly due to a net increase in cash outflows for income property acquisitions[343](index=343&type=chunk) - Cash flows provided by financing activities increased by **$128.5 million** to **$201.4 million** in 2022, primarily from increased net debt and proceeds from common stock offerings[344](index=344&type=chunk) - The company expects sufficient liquidity for operations, capital requirements, maintenance, and debt service for the foreseeable future, supported by cash on hand, operating cash flow, and **$186.2 million** available on its **$300.0 million Credit Facility**[353](index=353&type=chunk) [Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=61&type=section&id=Item%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risk is interest rate risk from its variable-rate Credit Facility, hedged by swaps, with a hypothetical 100 basis point increase impacting results by $1.1 million in 2022 - The principal market risk is **interest rate risk**, primarily from the variable-rate Credit Facility[360](index=360&type=chunk)[361](index=361&type=chunk) - A hypothetical **100 basis point (1%) increase** in interest rates would affect the company's financial position, results of operations, and cash flows by **$1.1 million** in 2022 and **$0.7 million** in 2021[361](index=361&type=chunk) - The company uses interest rate swap agreements to hedge against changes in future cash flows from fluctuating interest rates, minimizing exposure to interest rate changes[361](index=361&type=chunk) [Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA](index=61&type=section&id=Item%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This section presents the company's audited consolidated financial statements for 2020-2022, including balance sheets, statements of operations, comprehensive income, stockholders' equity, and cash flows, with detailed notes and schedules [Reports of Independent Registered Public Accounting Firm](index=72&type=section&id=Reports%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Grant Thornton LLP issued unqualified opinions on the consolidated financial statements and internal control over financial reporting, identifying real estate fair value as a critical audit matter - Grant Thornton LLP provided an **unqualified opinion** on the consolidated financial statements for the three years ended December 31, 2022, confirming conformity with U.S. GAAP[403](index=403&type=chunk) - An **unqualified opinion** was also issued on the effectiveness of the company's internal control over financial reporting as of December 31, 2022[404](index=404&type=chunk)[414](index=414&type=chunk) - The evaluation of the fair value of real estate acquired with in-place leases was identified as a **critical audit matter** due to the complexity and sensitivity of significant assumptions (discount rates, terminal rates, market rental rates)[408](index=408&type=chunk)[409](index=409&type=chunk)[410](index=410&type=chunk) [Consolidated Balance Sheets](index=75&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets show total assets increased to $986.5 million in 2022, driven by real estate, with corresponding increases in liabilities and stockholders' equity Consolidated Balance Sheet Highlights (in thousands) | Metric | December 31, 2022 | December 31, 2021 | | :--------------------------------- | :------------------ | :------------------ | | **ASSETS** | | | | Real Estate—Net | $734,721 | $494,695 | | Intangible Lease Assets—Net | $115,984 | $79,492 | | Investment in Alpine Income Property Trust, Inc. | $42,041 | $41,037 | | Commercial Loans and Investments | $31,908 | $39,095 | | Cash and Cash Equivalents | $19,333 | $8,615 | | Restricted Cash | $1,861 | $22,734 | | **Total Assets** | **$986,545** | **$733,139** | | **LIABILITIES** | | | | Long-Term Debt | $445,583 | $278,273 | | **Total Liabilities** | **$481,775** | **$302,659** | | **STOCKHOLDERS' EQUITY** | | | | Total Stockholders' Equity | $504,770 | $430,480 | - Total assets increased by **$253.4 million (34.6%)** from 2021 to 2022, primarily due to a **$240.0 million** increase in Real Estate—Net[422](index=422&type=chunk) - Total liabilities increased by **$179.1 million (59.2%)** from 2021 to 2022, largely driven by a **$167.3 million** increase in Long-Term Debt[422](index=422&type=chunk) [Consolidated Statements of Operations](index=76&type=section&id=Consolidated%20Statements%20of%20Operations) Total revenues increased to $82.3 million in 2022, but net income significantly decreased to $3.2 million due to disposition losses and higher expenses Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | 2022 | 2021 | 2020 | | :------------------------------------------ | :----- | :----- | :----- | | Total Revenues | $82,320 | $70,272 | $56,381 | | Total Operating Expenses | $(64,611) | $(71,812) | $(54,988) | | Gain (Loss) on Disposition of Assets | $(7,042) | $28,316 | $9,746 | | Total Operating Income | $10,667 | $23,345 | $12,280 | | Net Income Attributable to the Company | $3,158 | $29,940 | $78,509 | | Net Income (Loss) Attributable to Common Stockholders | $(1,623) | $27,615 | $78,509 | | Basic and Diluted Net Income (Loss) Attributable to Common Stockholders per Share | $(0.09) | $1.56 | $5.56 | - Total revenues increased by **$12.0 million (17.1%)** from 2021 to 2022, primarily driven by a **$18.2 million** increase in Income Properties revenue[425](index=425&type=chunk) - Net income attributable to the Company decreased significantly from **$29.9 million** in 2021 to **$3.2 million** in 2022, largely due to a shift from a **$28.3 million gain** on disposition of assets in 2021 to a **$7.0 million loss** in 2022, and increased depreciation and interest expenses[425](index=425&type=chunk) [Consolidated Statements of Comprehensive Income](index=77&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income decreased to $17.4 million in 2022, influenced by lower net income and a gain from cash flow hedging derivatives Consolidated Statements of Comprehensive Income (in thousands) | Metric | 2022 | 2021 | 2020 | | :------------------------------------------ | :----- | :----- | :----- | | Net Income Attributable to the Company | $3,158 | $29,940 | $78,509 | | Cash Flow Hedging Derivative - Interest Rate Swaps | $14,244 | $3,427 | $(1,984) | | **Total Comprehensive Income** | **$17,402** | **$33,367** | **$76,525** | - Total comprehensive income decreased from **$33.4 million** in 2021 to **$17.4 million** in 2022, primarily due to the significant decrease in net income, partially offset by a higher gain from cash flow hedging derivatives[427](index=427&type=chunk) [Consolidated Statements of Stockholders' Equity](index=78&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity increased to $504.8 million in 2022, driven by stock issuance and comprehensive income, partially offset by dividends Consolidated Statements of Stockholders' Equity Highlights (in thousands) | Metric | December 31, 2022 | December 31, 2021 | December 31, 2020 | | :------------------------------------------ | :------------------ | :------------------ | :------------------ | | Preferred Stock | $30 | $30 | — | | Common Stock | $229 | $60 | $7,250 | | Additional Paid-In Capital | $172,471 | $85,414 | $83,183 | | Retained Earnings | $316,279 | $343,459 | $339,917 | | Accumulated Other Comprehensive Income (Loss) | $15,761 | $1,517 | $(1,910) | | **Total Stockholders' Equity** | **$504,770** | **$430,480** | **$350,899** | - Total stockholders' equity increased by **$74.3 million (17.3%)** from 2021 to 2022[429](index=429&type=chunk) - Key drivers for the change in equity in 2022 included **$94.8 million** from stock issuance (net), **$14.2 million** from other comprehensive income, and **$3.2 million** in net income, offset by **$29.6 million** in common stock dividends and **$4.8 million** in preferred stock dividends[429](index=429&type=chunk) [Consolidated Statements of Cash Flows](index=79&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flows increased to $56.1 million in 2022, while investing activities used $267.6 million and financing activities provided $201.4 million Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | 2022 | 2021 | 2020 | | :------------------------------------------ | :----- | :----- | :----- | | Net Cash Provided By Operating Activities | $56,097 | $27,577 | $16,930 | | Net Cash Used In Investing Activities | $(267,629) | $(102,967) | $(91,122) | | Net Cash Provided By (Used In) Financing Activities | $201,377 | $72,914 | $(26,888) | | Net Decrease in Cash, Cash Equivalents and Restricted Cash | $(10,155) | $(2,476) | $(101,080) | | Cash, Cash Equivalents and Restricted Cash, End of Period | $21,194 | $31,349 | $33,825 | - Net cash provided by operating activities increased by **$28.5 million (103.3%)** in 2022, primarily due to increased cash flows from income properties and the sale of the Mitigation Bank[342](index=342&type=chunk)[432](index=432&type=chunk) - Net cash used in investing activities increased by **$164.7 million (160.0%)** in 2022, mainly due to higher income property acquisitions[343](index=343&type=chunk)[432](index=432&type=chunk) - Net cash provided by financing activities increased by **$128.5 million (176.2%)** in 2022, driven by increased net debt and proceeds from capital markets activity (common stock offering and ATM)[344](index=344&type=chunk)[432](index=432&type=chunk) [Notes to Consolidated Financial Statements](index=81&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, business segments, and financial line items, including REIT operations, acquisitions, debt, and tax implications - The Company operates as a publicly traded, **self-managed equity REIT**, focusing on retail and mixed-use properties, management services for PINE, commercial loans, and real estate operations[439](index=439&type=chunk)[440](index=440&type=chunk)[441](index=441&type=chunk)[442](index=442&type=chunk)[446](index=446&type=chunk) - The Company adopted **ASU 2021-01** (LIBOR cessation) and **ASU 2020-06** (convertible instruments accounting) effective **January 1, 2022**, impacting diluted EPS calculations for 2025 Notes[457](index=457&type=chunk)[458](index=458&type=chunk) - As of December 31, 2022, restricted cash totaled **$1.9 million**, including **$0.6 million** for the Mitigation Bank escrow and **$1.3 million** in interest reserve accounts for commercial loans[460](index=460&type=chunk) - The company's investment in PINE totaled **$42.0 million** as of December 31, 2022, representing **14.6%** of PINE's outstanding equity, and is carried at fair value with unrealized gains/losses recognized in net income[444](index=444&type=chunk)[551](index=551&type=chunk) - In 2022, the company acquired **five income properties** for **$315.6 million** and sold **six** for **$81.1 million**, resulting in **$4.7 million** in aggregate gains[496](index=496&type=chunk)[497](index=497&type=chunk)[498](index=498&type=chunk) - The commercial loans and investments portfolio had a carrying value of **$31.9 million** at December 31, 2022, down from **$39.1 million** in 2021, reflecting new originations and principal repayments[515](index=515&type=chunk) - Management fee revenue from PINE was **$3.8 million** in 2022, up from **$3.2 million** in 2021. No incentive fee was earned in 2022 or 2021[518](index=518&type=chunk) - Real estate operations revenue decreased to **$5.5 million** in 2022 from **$13.4 million** in 2021, primarily due to the non-recurring sale of the Daytona Beach Development in 2021. The Mitigation Bank was sold in December 2022 for **$8.1 million**, resulting in an **$11.9 million loss**[526](index=526&type=chunk)[527](index=527&type=chunk) - Total long-term debt (face value) was **$447.6 million** at December 31, 2022, up from **$278.3 million** in 2021, with the Credit Facility, Term Loans, and Convertible Senior Notes being the main components[592](index=592&type=chunk)[612](index=612&type=chunk) - The company's **3.875% Convertible Senior Notes** due 2025 had an outstanding principal amount of **$51.0 million** at December 31, 2022, with a conversion rate adjusted to **62.2047 shares per $1,000 principal**[608](index=608&type=chunk)[609](index=609&type=chunk) - Total stock-based compensation expense was **$3.2 million** in 2022, with **$1.4 million** of unrecognized cost for performance share awards remaining[621](index=621&type=chunk)[625](index=625&type=chunk) - The company elected **REIT taxation status** from **December 31, 2020**, resulting in an **$82.5 million deferred tax benefit** in 2020 from de-recognition of deferred tax assets/liabilities[646](index=646&type=chunk) [SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION](index=120&type=section&id=SCHEDULE%20III%20REAL%20ESTATE%20AND%20ACCUMULATED%20DEPRECIATION) Schedule III details real estate assets and accumulated depreciation, showing a significant increase in total cost to $764.0 million in 2022 due to additions and improvements Real Estate and Accumulated Depreciation (in thousands) | Metric | 2022 | 2021 | 2020 | | :--------------------------------- | :----- | :----- | :----- | | **Cost:** | | | | | Balance at Beginning of Year | $521,260 | $472,126 | $392,842 | | Additions and Improvements | $281,562 | $206,646 | $147,359 | | Cost of Real Estate Sold | $(38,863) | $(157,512) | $(68,075) | | **Balance at End of Year** | **$763,959** | **$521,260** | **$472,126** | | **Accumulated Depreciation:** | | | | | Balance at Beginning of Year | $23,936 | $30,316 | $22,552 | | Depreciation and Amortization | $16,262 | $12,270 | $11,207 | | Depreciation on Real Estate Sold | $(4,686) | $(18,650) | $(3,443) | | **Balance at End of Year** | **$35,512** | **$23,936** | **$30,316** | - The total cost of real estate increased by **$242.7 million (46.6%)** in 2022, primarily due to **$281.6 million** in additions and improvements[675](index=675&type=chunk) - Accumulated depreciation increased by **$11.6 million (48.5%)** in 2022, reflecting **$16.3 million** in depreciation and amortization[675](index=675&type=chunk) [SCHEDULE IV MORTGAGE LOANS ON REAL ESTATE](index=123&type=section&id=SCHEDULE%20IV%20MORTGAGE%20LOANS%20ON%20REAL%20ESTATE) Schedule IV details mortgage loans on real estate, with a portfolio carrying value of $31.9 million in 2022, reflecting new originations and principal collections - As of December 31, 2022, the company's portfolio included **three commercial loan investments** and **one preferred equity investment**, classified as commercial loan investments[678](index=678&type=chunk) Mortgage Loans on Real Estate (in thousands) - December 31, 2022 | Description | Interest Rate | Final Maturity Date | Face Amount of Mortgages | Carrying Amounts of Mortgages | | :------------------------------------------ | :------------ | :------------------ | :----------------------- | :---------------------------- | | Mortgage Note – 4311 Maple Avenue – Dallas, TX | 7.50% | April 2023 | $400 | $395 | | Construction Loan – The Exchange At Gwinnett – Buford, GA | 7.25% | January 2024 | $220 | $173 | | Preferred Investment - Watters Creek – Allen, TX | 8.50% | April 2025 | $30,000 | $29,887 | | Improvement Loan - Ashford Lane – Atlanta, GA | 12.00% | April 2025 | $1,453 | $1,453 | | **Totals** | | | **$32,073** | **$31,908** | Commercial Loans and Investments Segment Activity (in thousands) | Metric | 2022 | 2021 | 2020 | | :--------------------------------- | :----- | :----- | :----- | | Balance at Beginning of Year | $39,095 | $38,320 | $34,625 | | New Mortgage Loans | $53,282 | $364 | $28,360 | | Collection of Principal | $(61,634) | — | $(23,132) | | **Balance at End of Year** | **$31,908** | **$39,095** | **$38,320** | [Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE](index=61&type=section&id=Item%209.%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE) The company reported no changes in or disagreements with its accountants regarding accounting and financial disclosures - There have been **no disagreements** with our accountants on accounting and financial disclosures[363](index=363&type=chunk) [Item 9A. CONTROLS AND PROCEDURES](index=62&type=section&id=Item%209A.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls and internal control over financial reporting were effective as of December 31, 2022, with no material changes during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2022[365](index=365&type=chunk) - Management assessed and believes the company maintained **effective internal control over financial reporting** as of December 31, 2022, based on the 2013 COSO Framework[368](index=368&type=chunk) - No changes in internal control over financial reporting materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting during the fourth fiscal quarter[369](index=369&type=chunk) [Item 9B. OTHER INFORMATION](index=62&type=section&id=Item%209B.%20OTHER%20INFORMATION) This item states that there is no other information to report - No other information is reported under this item[370](index=370&type=chunk) [Item 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS](index=62&type=section&id=Item%209C.%20DISCLOSURE%20REGARDING%20FOREIGN%20JURISDICTIONS%20THAT%20PREVENT%20INSPECTIONS) The company states that this disclosure item is not applicable - Disclosure regarding foreign jurisdictions that prevent inspections is **not applicable**[371](index=371&type=chunk) PART III [Item 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE](index=62&type=section&id=Item%2010.%20DIRECTORS,%20EXECUTIVE%20OFFICERS,%20AND%20CORPORATE%20GOVERNANCE) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the definitive Proxy Statement - Information is incorporated by reference from the **definitive Proxy Statement**[373](index=373&type=chunk) [Item 11. EXECUTIVE COMPENSATION](index=62&type=section&id=Item%2011.%20EXECUTIVE%20COMPENSATION) Information regarding executive compensation is incorporated by reference from the definitive Proxy Statement - Information is incorporated by reference from the **definitive Proxy Statement**[374](index=374&type=chunk) [Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS](index=63&type=section&id=Item%2012.%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%20AND%20RELATED%20STOCKHOLDER%20MATTERS) Information concerning security ownership of certain beneficial owners and management is incorporated by reference from the definitive Proxy Statement - Information is incorporated by reference from the **definitive Proxy Statement**[376](index=376&type=chunk) [Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE](index=63&type=section&id=Item%2013.%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS,%20AND%20DIRECTOR%20INDEPENDENCE) Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the definitive Proxy Statement - Information is incorporated by reference from the **definitive Proxy Statement**[377](index=377&type=chunk) [Item 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES](index=63&type=section&id=Item%2014.%20PRINCIPAL%20ACCOUNTANT%20FEES%20AND%20SERVICES) Information on principal accountant fees and services is incorporated by reference from the definitive Proxy Statement - Information is incorporated by reference from the **definitive Proxy Statement**[378](index=378&type=chunk) PART IV [Item 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES](index=64&type=section&id=Item%2015.%20EXHIBITS,%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists the financial statements, schedules, and exhibits filed as part of the 10-K report, including audited financials and various agreements - The report includes consolidated financial statements: Balance Sheets, Statements of Operations, Comprehensive Income, Stockholders' Equity, and Cash Flows, along with Notes to Consolidated Financial Statements[381](index=381&type=chunk)[399](index=399&type=chunk) - Financial statement schedules include **Schedule III—Real Estate and Accumulated Depreciation** and **Schedule IV—Mortgage Loans on Real Estate**[382](index=382&type=chunk) - A detailed Exhibit Index is provided, listing various agreements (e.g., merger, purchase and sale, credit facility, management), corporate documents (articles, bylaws), and certifications (Sarbanes-Oxley Act)[383](index=383&type=chunk)[387](index=387&type=chunk) [Item 16. FORM 10-K SUMMARY](index=64&type=section&id=Item%2016.%20FORM%2010-K%20SUMMARY) This item indicates that a Form 10-K summary is not applicable - Form 10-K Summary is **not applicable**[384](index=384&type=chunk) SIGNATURES This section contains the signatures of the registrant's authorized officers and directors, affirming the filing of the report on February 23, 2023 - The report is signed by the President and Chief Executive Officer, Chief Financial Officer, Chief Accounting Officer, Chairman of the Board, and other Directors[396](index=396&type=chunk)[397](index=397&type=chunk) - The report was signed on **February 23, 2023**[396](index=396&type=chunk)[397](index=397&type=chunk)

Financial Data and Key Metrics Changes - Total revenues for Q3 2022 increased nearly 40% to $23 million, with year-to-date total revenues up 31% to $60 million [25] - Year-over-year same property NOI growth for the quarter was 12% [26] - Core FFO for Q3 2022 was $0.47 per share, a 38% increase compared to Q3 2021, while AFFO was $0.49 per share, representing a 36% increase [27] - Year-to-date core FFO was $1.41 per share and AFFO was $1.47 per share, reflecting year-over-year growth of 55% and 41% respectively [28] - The company paid a Q3 regular cash dividend of $0.38 per share, a 14% year-over-year increase [32] Business Line Data and Key Metrics Changes - The company sold several legacy properties, including a multi-tenanted office property, and reinvested in grocery-anchored assets [6][8] - The portfolio now consists of 19 properties, comprising approximately 3.1 million square feet of rentable space across 15 markets [23] - Grocery-anchored asset exposure has more than doubled to nearly 30% of the portfolio [15] Market Data and Key Metrics Changes - The largest markets for the company are now Atlanta, Georgia, Dallas, Texas, Richmond, Virginia, and Raleigh, North Carolina, with strong tenant demand and population growth [23] - The portfolio was 92% occupied at quarter end, with leased occupancy exceeding 94% [25] Company Strategy and Development Direction - The company is focused on portfolio repositioning by selling office and single-tenant assets and investing in properties anchored by high-quality tenants [14] - The acquisition of West Broad Village is seen as a strategic move to enhance the portfolio's tenant quality and geographic exposure [12][10] - The company aims to maximize the value of its existing portfolio through active asset management and leasing initiatives [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong execution and balance sheet, anticipating continued earnings and cash flow growth [39] - There is an expectation of softening tenant demand, but current demand remains strong, particularly from national and regional tenants [44] - The company is prepared for potential challenges, including the WeWork location going dark, but believes it can find a suitable replacement tenant [19][20] Other Important Information - The company completed a 3-for-1 stock split effective July 1 and issued approximately 566,000 shares through its ATM program, raising $12.3 million [33] - The company refinanced its credit facility, extending the maturity date and increasing commitments [34] - Net debt to total enterprise value was approximately 43%, and net debt to EBITDA was 6.4 times at quarter end [36] Q&A Session Summary Question: What are the current trends in the transaction market regarding cap rates? - Management noted a standoff between buyers and sellers, with cap rates increasing by about 100 basis points or more depending on property quality [42] Question: Is there any sign of weakness in tenant demand? - Management indicated that while local tenants may show some softness, demand from national and regional tenants remains strong [44] Question: What is the status of the WeWork lease? - The lease has about eight to nine years left, with rent approximately $2 above market, and there is interest from other operators to take over the space [47] Question: How is AMC performing in the new Atlanta asset? - AMC has been consistent, especially during the release of major films, and the location benefits from a strong local audience [50] Question: Are there any delays in lease commencements? - There are about $2.3 million of signed rent that has not commenced, with some delays expected into the next year [51] Question: What opportunities are emerging in the structured investment portfolio? - Management sees good opportunities arising due to challenges in the debt markets, with potential for equity-like yields [59] Question: How does the company balance share repurchases with long-term growth? - The company focuses on driving NAV and value, taking advantage of market dislocations when appropriate [73]

REALTY GROWTH Madison Yards Atlanta, GA © CTO Realty Growth, Inc. | ctoreit.com Supplemental Reporting Information Q3 2022 11:00 02 11: I alin posso . 11 1 1 100 11 Table of Contents 1. Third Quarter 2022 Earnings Release 3 2. Key Financial Information © CTO Realty Growth, Inc. | ctoreit.com ▪ Consolidated Balance Sheets 12 | --- | --- | |-------|------------------------------------------------------------------------| | | | | ▪ | Consolidated Statements of Operations 13 | | ▪ | Non-GAAP Financial Measures ...

[PART I—FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [ITEM 1. FINANCIAL STATEMENTS](index=2&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents unaudited consolidated financial statements, including balance sheets, statements of operations, and cash flows, with detailed notes on accounting policies - The financial statements are unaudited and prepared in accordance with SEC rules and U.S. GAAP, providing a snapshot of the company's financial position and performance for interim periods[45](index=45&type=chunk) - The company's business segments include income properties, management services, commercial loans and investments, and real estate operations[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk) - Significant accounting policies cover areas such as the retroactive adjustment for a three-for-one stock split, consolidation principles, and the adoption of new accounting standards like ASU 2020-06 for convertible instruments[44](index=44&type=chunk)[47](index=47&type=chunk)[54](index=54&type=chunk) [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$845.8 million** as of September 30, 2022, driven by real estate growth, while total liabilities rose to **$401.4 million** due to increased long-term debt Consolidated Balance Sheet Highlights (in thousands) | Metric | Sep 30, 2022 | Dec 31, 2021 | Change ($) | Change (%) | |:---|:---|:---|:---|:---| | Total Assets | $845,772 | $733,139 | $112,633 | 15.36% | | Real Estate—Net Land and Development Costs | $567,241 | $494,695 | $72,546 | 14.66% | | Total Liabilities | $401,368 | $302,659 | $98,709 | 32.62% | | Long-Term Debt | $370,248 | $278,273 | $91,975 | 33.05% | | Total Stockholders' Equity | $444,404 | $430,480 | $13,924 | 3.23% | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Total revenues increased for both three and nine-month periods, but net income significantly decreased due to lower gains on asset disposition Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | Change ($) | Change (%) | |:---|:---|:---|:---|:---| | Total Revenues | $23,117 | $16,577 | $6,540 | 39.45% | | Net Income Attributable to the Company | $4,817 | $23,947 | $(19,130) | -79.89% | | Basic Net Income Attributable to Common Stockholders (per share) | $0.20 | $1.29 | $(1.09) | -84.50% | | **Metric** | **9 Months Ended Sep 30, 2022** | **9 Months Ended Sep 30, 2021** | **Change ($)** | **Change (%)** | | Total Revenues | $59,790 | $45,572 | $14,218 | 31.20% | | Net Income Attributable to the Company | $6,237 | $28,008 | $(21,771) | -77.73% | | Basic Net Income Attributable to Common Stockholders (per share) | $0.15 | $1.52 | $(1.37) | -90.13% | [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income decreased for both three and nine-month periods, despite a substantial increase in cash flow hedging derivative gains Consolidated Statements of Comprehensive Income Highlights (in thousands) | Metric | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | Change ($) | Change (%) | |:---|:---|:---|:---|:---| | Total Comprehensive Income | $10,127 | $24,164 | $(14,037) | -58.10% | | Cash Flow Hedging Derivative - Interest Rate Swaps | $5,310 | $217 | $5,093 | 2346.99% | | **Metric** | **9 Months Ended Sep 30, 2022** | **9 Months Ended Sep 30, 2021** | **Change ($)** | **Change (%)** | | Total Comprehensive Income | $22,170 | $29,395 | $(7,225) | -24.58% | | Cash Flow Hedging Derivative - Interest Rate Swaps | $15,933 | $1,387 | $14,546 | 1048.74% | [Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity increased to **$444.4 million** as of September 30, 2022, driven by net income, stock issuance, and other comprehensive income, partially offset by dividends and repurchases Consolidated Stockholders' Equity Highlights (in thousands) | Metric | Sep 30, 2022 | Jan 1, 2022 | Change ($) | Change (%) | |:---|:---|:---|:---|:---| | Stockholders' Equity | $444,404 | $430,480 | $13,924 | 3.23% | | Net Income Attributable to the Company (9 months) | $6,237 | N/A | N/A | N/A | | Stock Issuance, Net of Equity Issuance Costs (9 months) | $20,567 | N/A | N/A | N/A | | Common Stock Dividends Declared (9 months) | $(20,815) | N/A | N/A | N/A | | Other Comprehensive Income (9 months) | $15,933 | N/A | N/A | N/A | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased to **$34.1 million**, while investing activities used **$80.4 million**, and financing activities provided **$61.8 million** Consolidated Statements of Cash Flows Highlights (Nine Months Ended Sep 30, in thousands) | Metric | 2022 | 2021 | Change ($) | Change (%) | |:---|:---|:---|:---|:---| | Net Cash Provided By Operating Activities | $34,080 | $12,365 | $21,715 | 175.62% | | Net Cash Used In Investing Activities | $(80,370) | $(7,739) | $(72,631) | -938.50% | | Net Cash Provided By Financing Activities | $61,765 | $37,100 | $24,665 | 66.48% | | Cash, Cash Equivalents and Restricted Cash, End of Period | $46,824 | $75,551 | $(28,727) | -38.02% | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures on the company's business, accounting policies, and specific financial activities, including significant acquisitions, debt, and subsequent events - The company is a retail-focused REIT owning **18 commercial properties** across nine states, totaling **2.7 million square feet** as of September 30, 2022[38](index=38&type=chunk) - Business segments include income properties, management services (for PINE), commercial loans and investments, and real estate operations (subsurface mineral interests and mitigation credits)[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk) - Significant acquisitions in 2022 include Price Plaza Shopping Center (**$39.1 million**) and Madison Yards (**$80.2 million**), while dispositions totaled **$81.1 million** with aggregate gains of **$4.7 million**[82](index=82&type=chunk)[84](index=84&type=chunk) - Long-term debt increased to **$370.2 million** as of September 30, 2022, from **$278.3 million** at December 31, 2021, with new term loans and an assumed mortgage note[14](index=14&type=chunk)[168](index=168&type=chunk) - Subsequent to September 30, 2022, the company acquired West Broad Village for **$93.9 million** and filed a new shelf registration statement for up to **$500.0 million**[243](index=243&type=chunk)[244](index=244&type=chunk) [NOTE 1. DESCRIPTION OF BUSINESS](index=12&type=section&id=NOTE%201.%20DESCRIPTION%20OF%20BUSINESS) CTO Realty Growth, Inc. is a retail-focused REIT owning 18 commercial properties and engaging in management services, commercial loan investments, and real estate operations - The company owns and manages **18 commercial real estate properties** (5 single-tenant, 13 multi-tenant) comprising **2.7 million square feet** in nine states[38](index=38&type=

CTO Realty Growth, Inc. (NYSE:CTO) Q2 2022 Earnings Conference Call July 29, 2022 9:00 AM ET Company Participants John Albright - President and Chief Executive Officer Matthew Partridge - Senior Vice President and Chief Financial Officer Conference Call Participants Gaurav Mehta - EF Hutton Robert Stevenson - Janney Montgomery Scott, LLC Michael Gorman - BTIG, LLC Matthew Erdner - JonesTrading Richard Milligan - Raymond James & Associates, Inc. Operator Hello. Thank you for standing by, and welcome to the C ...

REALTY GROWTH Supplemental Reporting Information Q2 2022 © CTO Realty Growth, Inc. | ctoreit.com Table of Contents 1. Second Quarter 2022 Earnings Release 3 2. Key Financial Information © CTO Realty Growth, Inc. | ctoreit.com ▪ Consolidated Balance Sheets 12 | --- | --- | |-------|------------------------------------------------------------------------| | | | | ▪ | Consolidated Statements of Operations 13 | | ▪ | Non-GAAP Financial Measures 14 | | | Capitalization & Dividends 17 | | | Summary of Debt 18 | | ...

Table of Contents Title of each class: Trading Symbols Name of each exchange on which registered: Common Stock, $0.01 par value per share CTO NYSE 6.375% Series A Cumulative Redeemable Preferred Stock, $0.01 par value per share CTO PrA NYSE UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) ...

CTO REALTY GROWTH Investor Presentation t Hollally ago Year-To-Date Highlights Accretive and Opportunistic Investment Activity ▪ Under contract to acquire Madison Yards, a grocery-anchored, class A shopping center in Atlanta, GA for $80.2 million ▪ Currently have several legacy office properties on the market for disposition ▪ Acquired one multi-tenant retail income property in Houston, TX for $39.1 million at a going-in cap rate above the Company's guided range for initial investment cash yields ▪ Entered ...

REALTY GROWTH Supplemental Reporting Information Q1 2022 © CTO Realty Growth, Inc. | ctoreit.com Table of Contents 1. First Quarter 2021 Earnings Release 3 2. Key Financial Information © CTO Realty Growth, Inc. | ctoreit.com ▪ Consolidated Balance Sheets 11 | --- | --- | |-------|------------------------------------------------------------------------| | | | | ▪ | Consolidated Statements of Operations 12 | | ▪ | Non-GAAP Financial Measures 13 | | | Capitalization & Dividends 16 | | | Summary of Debt 17 | | ...