Balance Sheet ▪ Adequate liquidity for opportunistic growth ▪ No near-term debt maturities ▪ Q2 2023 quarter-end net debtto-pro forma EBITDA of 7.9x | --- | --- | --- | --- | |------------------------------------|-------|----------------|-----------------------------------| | Component of Long-Term Debt Type | | Principal | Interest Rate | | 2025 Convertible Senior Notes | Fixed | $51.0 million | 3.88% | | 2026 Term Loan 2 | Fixed | $65.0 million | SOFR + 10 bps + [1.25% - 2.20%] | | Mortgage Note | Fixed | ...

Financial Data and Key Metrics Changes - For Q2 2023, core FFO decreased by 8.5% to $0.43 per share, while AFFO decreased by 2% to $0.48 per share compared to the same period last year [20] - Year-to-date, core FFO was $0.82 per share and AFFO was $0.91 per share, representing year-over-year decreases of 12.8% and 8.1% respectively [20] - The company ended Q2 with total liquidity exceeding $100 million, which includes undrawn commitments on the revolving credit facility, cash, and restricted cash [37] Business Line Data and Key Metrics Changes - The company signed or renewed a total of 13 leases at Collection at Forsyth, representing over 52,000 square feet at an average rent of $27.85 per square foot, with new comparable leases growing rents by more than 35% [16] - The leasing momentum was driven by recent acquisitions, including Collection at Forsyth and West Broad Village, with strong performance from existing tenants [32][123] - The company anticipates increased disposition activity in the latter half of the year to pay down debt, with a forecast to sell between $15 million and $75 million of assets [2][15] Market Data and Key Metrics Changes - The company reported an occupancy rate of 91.4% at the end of Q2, an increase of 150 basis points from Q1, while leased occupancy remained largely unchanged at 93.4% [18] - The Dallas-Fort Worth metroplex is now the second largest market in the portfolio, representing nearly 18% of in-place cash-based rent [30] - The company expects to benefit from significant population growth and retailer demand in its Sunbelt markets [19] Company Strategy and Development Direction - The company is focused on converting its Exchange at Gwinnett development loan into fee simple ownership and has made several high-quality asset acquisitions [13][29] - The strategy includes maintaining a conservative approach to guidance while aiming for potential upside in 2024 [7][70] - The company is actively negotiating on office assets and expects a competitive bidding environment for some properties [4][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the leasing momentum and operational efficiency programs, maintaining full-year earnings guidance despite challenges [34] - The management team noted that the tenant credit watch list is in good shape, with proactive measures taken to address non-performing tenants [45] - The company anticipates that the floating rate debt will weigh on FFO and AFFO in the third quarter but expects improvements in 2024 as issues are resolved [69][70] Other Important Information - The company distributed a regular cash dividend of $0.38 per share for Q2 2023, marking a 1.8% increase compared to Q2 2022 [58] - The company repurchased shares of common stock and Series A preferred stock during the quarter [59] - The company is exploring opportunities for future acquisitions but remains selective due to current market conditions [114][119] Q&A Session Summary Question: What is the expected timing on the backfill of The Hall? - Management indicated that they expect to have a new operator in place by the fourth quarter, with ongoing negotiations [121] Question: How meaningful is the opportunity at Plaza at Rockwall? - The company noted that the Plaza at Rockwall is a below-market rent story, indicating significant potential for revenue growth [55][91] Question: What is the current state of the tenant credit watch list? - Management reported that the tenant credit watch list is in good shape, with proactive measures being taken to address any issues [45] Question: What is holding the company back from raising full-year guidance? - The company cited potential headwinds from floating rate debt and the loss of rent from The Hall as reasons for maintaining a conservative outlook [69][70] Question: What is the expected leased occupancy by year-end? - Management expects leased occupancy to be in the 94% to 95% range by year-end, with potential for further improvement in 2024 [93]

[PART I—FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for CTO Realty Growth, Inc. as of June 30, 2023, and for the three and six-month periods then ended [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2023, total assets decreased to $986.5 million from $1.06 billion, primarily due to reductions in Real Estate—Net and Long-Term Debt Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2023 (Unaudited) | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$986,545** | **$1,061,512** | | Real Estate—Net | $734,721 | $806,062 | | Cash and Cash Equivalents | $19,333 | $7,312 | | **Total Liabilities** | **$481,775** | **$582,945** | | Long-Term Debt | $445,583 | $541,768 | | **Total Stockholders' Equity** | **$504,770** | **$478,567** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2023, total revenues increased to $26.0 million, resulting in net income of $0.6 million, while the six-month period reported a net loss of $6.6 million Key Operating Results (in thousands, except per share data) | Metric | Q2 2023 | Q2 2022 | 6 Months 2023 | 6 Months 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$26,047** | **$19,463** | **$50,764** | **$36,673** | | Income Properties Revenue | $22,758 | $16,367 | $45,190 | $31,535 | | Total Operating Income | $5,683 | $5,020 | $8,640 | $8,506 | | **Net Income (Loss) Attributable to Common Stockholders** | **$605** | **$22** | **$(6,583)** | **$(971)** | | Basic and Diluted EPS | $0.03 | $0.00 | $(0.29) | $(0.05) | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2023, operating cash flow increased to $25.0 million, while investing activities significantly increased cash usage to $106.4 million Summary of Cash Flows (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net Cash Provided By Operating Activities | $25,021 | $22,413 | | Net Cash Used In Investing Activities | $(106,424) | $(54,358) | | Net Cash Provided By Financing Activities | $70,276 | $34,922 | | **Net Increase (Decrease) in Cash** | **$(11,127)** | **$2,977** | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section details accounting policies and financial data, covering business description, income properties, commercial loans, related party transactions, debt, equity, and segment data - The company is a self-managed equity REIT focused on high-quality retail and mixed-use properties, owning **24 properties** with **4.2 million square feet** as of June 30, 2023[22](index=22&type=chunk)[23](index=23&type=chunk) - Business operations include a fee-based management business for PINE, a commercial loan portfolio, subsurface mineral interests, and a **$37.9 million investment** in PINE (14.8% of PINE's equity)[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition, operational results, and liquidity, highlighting revenue growth, increased expenses, and non-GAAP measures [Overview](index=39&type=section&id=Overview) The company is a self-managed equity REIT owning 24 retail and mixed-use properties, also providing management services for PINE and managing a commercial loan portfolio - The investment strategy prioritizes markets with favorable business policies, job growth, and population growth, evaluating acquisitions based on real estate attributes, tenant quality, and market conditions[188](index=188&type=chunk)[194](index=194&type=chunk) - Multi-tenant properties generate **$75.0 million** in annualized base rent with a **4.4-year** weighted average lease term, while single-tenant properties generate **$9.3 million** with a **5.6-year** term[196](index=196&type=chunk) [Comparison of Results of Operations](index=40&type=section&id=Comparison%20of%20Results%20of%20Operations) Q2 2023 saw a 33.8% revenue increase to $26.1 million and higher net income, while the six-month period recorded a net loss due to increased non-cash depreciation, investment losses, and interest expense Revenue Variance - Q2 2023 vs Q2 2022 (in thousands) | Operating Segment | Q2 2023 | Q2 2022 | $ Variance | % Variance | | :--- | :--- | :--- | :--- | :--- | | Income Properties | $22,758 | $16,367 | $6,391 | 39.0% | | Management Services | $1,102 | $948 | $154 | 16.2% | | Commercial Loans & Investments | $1,056 | $1,290 | $(234) | (18.1)% | | Real Estate Operations | $1,131 | $858 | $273 | 31.8% | | **Total Revenue** | **$26,047** | **$19,463** | **$6,584** | **33.8%** | Revenue Variance - 6 Months 2023 vs 2022 (in thousands) | Operating Segment | 6 Months 2023 | 6 Months 2022 | $ Variance | % Variance | | :--- | :--- | :--- | :--- | :--- | | Income Properties | $45,190 | $31,535 | $13,655 | 43.3% | | Management Services | $2,200 | $1,884 | $316 | 16.8% | | Commercial Loans & Investments | $1,851 | $2,008 | $(157) | (7.8)% | | Real Estate Operations | $1,523 | $1,246 | $277 | 22.2% | | **Total Revenue** | **$50,764** | **$36,673** | **$14,091** | **38.4%** | - The increase in net income for Q2 2023 was driven by a **$2.3 million** extinguishment of a contingent liability and higher operating income from the property portfolio, partially offset by increased depreciation and interest expense[212](index=212&type=chunk) - The net loss for the first six months of 2023 was primarily due to higher non-cash depreciation (**$21.1 million** vs **$13.1 million** YoY), a **$6.2 million** unrealized non-cash loss on the PINE investment, and higher interest expense (**$9.8 million** vs **$4.2 million** YoY)[219](index=219&type=chunk)[222](index=222&type=chunk)[226](index=226&type=chunk) [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2023, the company had $7.3 million in cash and sufficient liquidity from operating cash flow and credit facility capacity to fund operations for the next twelve months - Cash from operations increased to **$25.0 million** in H1 2023 from **$22.4 million** in H1 2022, driven by portfolio growth but partially offset by higher interest payments[229](index=229&type=chunk) - During H1 2023, the company acquired properties for a total cost of **$76.0 million** and originated a **$15.0 million** structured investment, while also selling one property for **$2.1 million**[234](index=234&type=chunk)[236](index=236&type=chunk) - As of June 30, 2023, the company had a remaining commitment of **$11.5 million** for capital improvements, including tenant improvements and leasing commissions[237](index=237&type=chunk) - The company has **$90.4 million** available under its **$300.0 million** credit facility and **$137.7 million** remaining under its ATM program[238](index=238&type=chunk) [Non-U.S. GAAP Financial Measures](index=48&type=section&id=Non-U.S.%20GAAP%20Financial%20Measures) This section reconciles Net Income (Loss) to non-GAAP measures, with Q2 2023 FFO per diluted share at $0.40, Core FFO at $0.43, and AFFO at $0.48 Reconciliation of Non-U.S. GAAP Measures per Diluted Share | Per Share Data | Q2 2023 | Q2 2022 | 6 Months 2023 | 6 Months 2022 | | :--- | :--- | :--- | :--- | :--- | | FFO Attributable to Common Stockholders | $0.40 | $0.44 | $0.76 | $0.88 | | Core FFO Attributable to Common Stockholders | $0.43 | $0.47 | $0.82 | $0.94 | | AFFO Attributable to Common Stockholders | $0.48 | $0.49 | $0.91 | $0.99 | - The company defines FFO according to NAREIT standards and makes further adjustments for non-cash or non-recurring items to calculate Core FFO and AFFO, which management uses to assess operating performance[247](index=247&type=chunk)[248](index=248&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk on its variable-rate debt, with a 100 basis point increase impacting financial results by approximately $1.1 million - The principal market risk is interest rate risk on the un-hedged portion of the company's **$300.0 million** revolving Credit Facility[259](index=259&type=chunk)[260](index=260&type=chunk) - As of June 30, 2023, **$109.6 million** of the Credit Facility balance was subject to variable interest rates, where a **1%** change in rates would result in a **$1.1 million** impact on earnings and cash flows[260](index=260&type=chunk) [Item 4. Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures are effective as of the end of the period covered by the report[261](index=261&type=chunk) - No material changes to internal control over financial reporting occurred during the three months ended June 30, 2023[261](index=261&type=chunk) [PART II—OTHER INFORMATION](index=51&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) The company may be involved in legal proceedings incidental to its normal course of business but does not expect any current proceedings to have a material effect on its financial condition or results of operations - The company is not currently party to any legal proceedings that are expected to have a material impact on its financial condition[262](index=262&type=chunk) [Item 1A. Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2022 - No material changes in risk factors were reported from those disclosed in the 2022 Form 10-K[264](index=264&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2023, the company repurchased 3,931 shares of common stock for approximately $62,000 and 746 shares of Series A Preferred Stock for approximately $14,000 under approved programs Common Stock Repurchases (Q2 2023) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | May 2023 | 3,931 | $15.73 | Series A Preferred Stock Repurchases (Q2 2023) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | May 2023 | 398 | $18.88 | | June 2023 | 348 | $18.76 | - As of June 30, 2023, approximately **$4.9 million** remained available under the common stock repurchase program and **$2.99 million** remained under the Series A Preferred Stock repurchase program[265](index=265&type=chunk)[266](index=266&type=chunk) [Item 6. Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, CEO and CFO certifications, and XBRL data files

CTO Realty Growth, Inc. (NYSE:CTO) Q1 2023 Earnings Conference Call April 28, 2023 9:00 AM ET Company Participants Matt Partridge - Senior Vice President, Chief Financial Officer, and Treasurer John Albright - President and Chief Executive Officer Conference Call Participants Gaurav Mehta - EF Hutton Rob Stevenson - Janney Montgomery Scott Craig Kucera - B. Riley Securities Floris van Dijkum - Compass Point Operator Good day, and thank you for standing by. Welcome to the CTO Q1 2023 Earnings Conference Call ...

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the quarterly period ended March 31, 2023 [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) For Q1 2023, CTO Realty Growth reported total assets of **$981.3 million**, a net loss of **$7.2 million**, and **$9.3 million** in operating cash flow Consolidated Balance Sheets (Unaudited) | | March 31, 2023 (In thousands) | December 31, 2022 (In thousands) | | :--- | :--- | :--- | | **Total Assets** | **$981,254** | **$986,545** | | Total Liabilities | $502,625 | $481,775 | | Total Stockholders' Equity | $478,629 | $504,770 | | **Total Liabilities and Stockholders' Equity** | **$981,254** | **$986,545** | Consolidated Statements of Operations (Unaudited) | | Three Months Ended March 31, 2023 (In thousands) | Three Months Ended March 31, 2022 (In thousands) | | :--- | :--- | :--- | | Total Revenues | $24,717 | $17,210 | | Total Operating Income | $2,957 | $3,486 | | Net Income (Loss) Attributable to the Company | $(5,993) | $202 | | Net Loss Attributable to Common Stockholders | $(7,188) | $(993) | | Basic and Diluted Net Loss Per Share | $(0.32) | $(0.06) | Consolidated Statements of Cash Flows (Unaudited) | | Three Months Ended March 31, 2023 (In thousands) | Three Months Ended March 31, 2022 (In thousands) | | :--- | :--- | :--- | | Net Cash Provided By Operating Activities | $9,327 | $11,428 | | Net Cash Used In Investing Activities | $(25,559) | $(16) | | Net Cash Provided By (Used In) Financing Activities | $3,650 | $(6,926) | | Net (Decrease) Increase in Cash | $(12,582) | $4,486 | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, business segments, acquisition activities, related-party transactions, and debt/equity structure - The company is a self-managed equity REIT focused on retail and mixed-use properties, owning **23 properties** (3.7 million sq. ft.) and managing other segments including services for PINE, commercial loans, and subsurface mineral interests[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) - In Q1 2023, the company acquired one property for **$3.3 million**, contrasting with Q1 2022 acquisitions of one property for **$39.1 million** and sales of two properties for **$24.0 million**[58](index=58&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk) - The commercial loan and investment portfolio increased to a carrying value of **$47.1 million** as of March 31, 2023, up from **$31.9 million** at year-end 2022, driven by a new **$15.0 million** mortgage loan origination[63](index=63&type=chunk)[70](index=70&type=chunk) - The company earned **$1.1 million** in management fees from PINE in Q1 2023, up from **$0.9 million** in Q1 2022, with CTO's investment in PINE valued at **$39.3 million** (14.8% of PINE's equity) as of March 31, 2023[73](index=73&type=chunk)[77](index=77&type=chunk) - In Q1 2023, the company repurchased **303,354 shares** of its common stock for **$5.0 million**, and declared dividends of **$0.38 per common share** and **$0.40 per preferred share**[110](index=110&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk) Long-Term Debt Face Value as of March 31, 2023 | Debt Instrument | Face Value (In thousands) | | :--- | :--- | | Credit Facility | $133,150 | | 2026 Term Loan | $65,000 | | 2027 Term Loan | $100,000 | | 2028 Term Loan | $100,000 | | 3.875% Convertible Senior Notes due 2025 | $51,034 | | Mortgage Note Payable | $17,800 | | **Total Long-Term Face Value Debt** | **$466,984** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=57&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2023 financial results, highlighting revenue growth, net loss drivers, liquidity, and non-GAAP performance measures [Comparison of the Three Months Ended March 31, 2023 and 2022](index=61&type=section&id=Comparison%20of%20the%20Three%20Months%20Ended%20March%2031%2C%202023%20and%202022) Total revenue increased by **43.6%** to **$24.7 million** due to income property growth, but a net loss of **$6.0 million** resulted from higher expenses and an unrealized loss on PINE investment Revenue Variance by Segment (Q1 2023 vs Q1 2022) | Operating Segment | Q1 2023 (In thousands) | Q1 2022 (In thousands) | $ Variance | % Variance | | :--- | :--- | :--- | :--- | :--- | | Income Properties | $22,432 | $15,168 | $7,264 | 47.9% | | Management Services | $1,098 | $936 | $162 | 17.3% | | Commercial Loans and Investments | $795 | $718 | $77 | 10.7% | | Real Estate Operations | $392 | $388 | $4 | 1.0% | | **Total Revenue** | **$24,717** | **$17,210** | **$7,507** | **43.6%** | - Depreciation and amortization increased by **$3.9 million** due to growth in the income property portfolio[199](index=199&type=chunk) - An unrealized, non-cash loss of **$4.9 million** was recorded on the investment in PINE, compared to a **$2.5 million** loss in the prior-year period[203](index=203&type=chunk) - Interest expense increased by **$2.7 million**, primarily from higher balances and rates on the Credit Facility and new term loan debt[205](index=205&type=chunk) [Liquidity and Capital Resources](index=65&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2023, the company had **$7.0 million** in cash and **$166.8 million** available on its credit facility, with a 2023 investment target of **$100-$200 million** - Cash flow from operating activities decreased by **$2.1 million** to **$9.3 million** in Q1 2023, primarily due to a **$3.2 million** increase in cash paid for interest[208](index=208&type=chunk)[209](index=209&type=chunk) - The company has **$166.8 million** of undrawn commitment under its **$300.0 million** Credit Facility as of March 31, 2023[212](index=212&type=chunk) - 2023 investment guidance ranges from **$100.0 million to $200.0 million**, expected to be funded by cash, operations, dispositions (via 1031 exchanges), and credit facility borrowings[214](index=214&type=chunk) Contractual Commitments as of March 31, 2023 | Commitment Type | Remaining Amount (In thousands) | | :--- | :--- | | Capital Improvements | $19,270 | | Construction Loan Funding | $4,300 | [Non-U.S. GAAP Financial Measures](index=70&type=section&id=Non-U.S.%20GAAP%20Financial%20Measures) The company uses non-GAAP measures like FFO, Core FFO, and AFFO to assess operating performance, with Q1 2023 AFFO at **$0.43 per diluted share** - The company uses FFO, Core FFO, and AFFO as supplemental measures to assess operating performance, excluding items like real estate depreciation and certain non-cash revenues and expenses[224](index=224&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk) Non-U.S. GAAP Measures per Diluted Share | Per Share Data | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | FFO Attributable to Common Stockholders | $0.36 | $0.44 | | Core FFO Attributable to Common Stockholders | $0.39 | $0.46 | | AFFO Attributable to Common Stockholders | $0.43 | $0.49 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=73&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk on its variable-rate Credit Facility, partially mitigated by interest rate swaps - The primary market risk is interest rate risk on the variable-rate Credit Facility[236](index=236&type=chunk)[237](index=237&type=chunk) - As of March 31, 2023, **$33.2 million** of the Credit Facility balance was not fixed by an interest rate swap, with a hypothetical **1% rate change** impacting results by **$0.3 million**[237](index=237&type=chunk) [Item 4. Controls and Procedures](index=73&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal control over financial reporting - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures are effective[238](index=238&type=chunk) - There were no material changes in internal control over financial reporting during Q1 2023[238](index=238&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=73&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to materially affect its financial condition or results of operations - The company does not expect any current legal proceedings to have a material impact on its financial condition or operations[239](index=239&type=chunk) [Item 1A. Risk Factors](index=73&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors from those disclosed in its 2022 Annual Report on Form 10-K - There have been no material changes in risk factors from those set forth in the company's 2022 Annual Report on Form 10-K[241](index=241&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=75&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2023, the company repurchased **303,354 shares** of its common stock for **$5.0 million** under a publicly announced program Share Repurchases in Q1 2023 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2023 | — | — | | Feb 2023 | — | — | | Mar 2023 | 303,354 | $16.48 | | **Total** | **303,354** | **$16.48** | [Item 6. Exhibits](index=76&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents and Sarbanes-Oxley Act certifications - The exhibits filed with the report include corporate bylaws, a form of a performance share award agreement, and certifications required under Sections 302 and 906 of the Sarbanes-Oxley Act[244](index=244&type=chunk)

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=