Core Points - CTO Realty Growth, Inc. has declared a quarterly cash dividend of $0.38 per share for the second quarter of 2025, representing an annualized yield of approximately 8.5% based on the stock's closing price on May 23, 2025 [1] - The cash dividend is payable on June 30, 2025, to stockholders of record as of June 12, 2025, with the ex-dividend date also on June 12, 2025 [2] - Additionally, a quarterly cash dividend of $0.39844 per share for the Company's 6.375% Series A Cumulative Redeemable Preferred Stock has been authorized for the same period, also payable on June 30, 2025 [3] Company Overview - CTO Realty Growth, Inc. specializes in owning and operating high-quality, open-air shopping centers in the Southeast and Southwest markets of the United States [4] - The Company also manages and holds a significant interest in Alpine Income Property Trust, Inc. [4]

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Financial Data and Key Metrics Changes - The company reported a Core FFO of $14.4 million for Q1 2025, an increase of $3.7 million compared to $10.7 million in Q1 2024 [15] - On a per share basis, Core FFO was $0.46 in Q1 2025 compared to $0.48 in Q1 2024, primarily due to reduced leverage and downtime from re-leasing anchor spaces [16] - The net debt to EBITDA ratio was 6.6 times at the end of the quarter, slightly elevated from the previous quarter but a full turn lower than one year ago [15] Business Line Data and Key Metrics Changes - The company signed over 112,000 square feet of new leases, renewals, and extensions at an average rent of $24.14 per square foot, nearly 25% higher than the in-place portfolio average of $19.41 per square foot [7] - The portfolio was 93.8% leased and 91% occupied at quarter end [9] - The signed but not opened leasing pipeline stands at $4 million of annual base rent, representing 4% of cash rents at quarter end [10] Market Data and Key Metrics Changes - The company acquired Ashley Park for $79.8 million, with a cash cap rate near the high end of guidance, indicating strong market interest [5] - There is active tenant interest for nearly half of the 40,000 square feet of vacancy at Ashley Park, with 200,000 square feet of shop space paying below market rent [6] Company Strategy and Development Direction - The company continues to focus on acquiring properties in growth markets in the Southeast and Southwest, with a strong pipeline of potential acquisitions [6] - The management is optimistic about the leasing outlook for anchor spaces previously leased to tenants that filed for bankruptcy, expecting a positive cash leasing spread of 40% to 60% [9] - The company is also considering recycling assets into higher yielding properties as market conditions improve [32] Management's Comments on Operating Environment and Future Outlook - Management noted that despite tariff uncertainties, the company is well-positioned with high-quality properties and a diversified tenant base [10] - The management reaffirmed full-year 2025 guidance for Core FFO per share of $1.80 to $1.86 and AFFO of $1.93 to $1.98, with consistent underlying assumptions [18] Other Important Information - The company executed two SOFR swaps, fixing SOFR for $100 million of principal at a weighted average rate of 3.32% for five years, reducing the applicable interest rate significantly [12] - The company extinguished $51 million of convertible notes, resulting in a charge of approximately $20.5 million to be recorded in Q2 [14] Q&A Session Summary Question: Can you provide more detail on the anchor space negotiations? - Management indicated that leasing activity has been strong and consistent, with no pauses in discussions despite market volatility [21] Question: What drove the new lease spreads? - The increase in lease spreads was primarily due to two significant leases that accounted for a large portion of new leasing activity, driving spreads over 80% [23] Question: What is the expected CapEx for bankrupt tenant spaces? - The expected CapEx for re-leasing is in the range of $9 million to $12 million, with little spent so far as tenants need to complete their work before reimbursements [30][58] Question: How does the company plan to fund new investments? - The company plans to handle funding internally with liquidity and is considering selling remaining office properties to enhance capital [32] Question: Have cap rates changed since the tariff announcement? - Management noted that cap rates for core assets have remained stable or decreased, with strong demand in the shopping center market [49] Question: What is the timeline for marking to market on recent acquisitions? - Management expects to see movement in lease rates for recent acquisitions by mid-next year as they work through tenant transitions [52]

Financial Data and Key Metrics Changes - The company reported a Core FFO of $14.4 million for Q1 2025, an increase of $3.7 million compared to $10.7 million in Q1 2024 [15] - On a per share basis, Core FFO was $0.46 in Q1 2025, down from $0.48 in Q1 2024, primarily due to reduced leverage and downtime from re-leasing anchor spaces [16] - The net debt to EBITDA ratio was 6.6 times at the end of the quarter, slightly elevated from the previous quarter but a full turn lower than a year ago [15] Business Line Data and Key Metrics Changes - The company signed over 112,000 square feet of new leases, renewals, and extensions at an average rent of $24.14 per square foot, nearly 25% higher than the portfolio average of $19.41 per square foot [7] - The portfolio was 93.8% leased and 91% occupied at quarter end [9] - The signed but not open leasing pipeline stands at $4 million of annual base rent, representing 4% of cash rents at quarter end [10] Market Data and Key Metrics Changes - The company acquired Ashley Park for $79.8 million, with a cash cap rate near the high end of guidance, indicating strong market interest [5] - There is active tenant interest for nearly half of the 40,000 square feet of vacancy at Ashley Park, with significant potential for lease-up [6] Company Strategy and Development Direction - The company continues to focus on acquiring properties in growth markets in the Southeast and Southwest, with a strong pipeline of potential acquisitions [6] - The management is optimistic about the leasing outlook for anchor spaces previously leased to tenants that filed for bankruptcy, expecting a positive cash leasing spread of 40% to 60% [9] - The company is considering recycling assets into higher yielding properties as capital returns to the market [34] Management's Comments on Operating Environment and Future Outlook - Management noted that leasing activity remains strong despite recent market volatility, with no significant pauses in negotiations [21] - The company is well-positioned with high-quality properties and a diversified tenant base amid tariff uncertainties [10] - Management reaffirmed full-year 2025 guidance for Core FFO per share of $1.80 to $1.86 and AFFO of $1.93 to $1.98 [18] Other Important Information - The company executed two SOFR swaps, fixing SOFR for $100 million of principal at a weighted average rate of 3.32% for five years, reducing the applicable interest rate significantly [12] - The company extinguished $51 million of convertible notes, resulting in a charge of approximately $20.5 million to be recorded in Q2 [14] Q&A Session Summary Question: Can you provide more detail on the anchor space negotiations? - Management indicated that leasing activity has been consistent and strong, with no pauses in negotiations despite market volatility [21] Question: What drove the new lease spreads? - The increase in lease spreads was primarily due to two significant leases that accounted for a large portion of new leasing activity, driving spreads over 80% [22][23] Question: How much CapEx is required for the bankrupt tenant spaces? - The expected CapEx for re-leasing these spaces is in the range of $9 million to $12 million, with little spent so far [30][31] Question: What is the expected timeframe for tenants to start paying rent after signing leases? - A safe estimate for rent commencement is about a year, although some tenants may move in more quickly [32] Question: How does the company plan to fund new acquisitions? - The company plans to handle funding internally with liquidity and is considering selling remaining office properties to enhance capital [33] Question: Have cap rates changed since the tariff announcement? - Management noted that cap rates for traditional core assets have remained stable or decreased, despite wider credit spreads in the bond market [50] Question: What is the timeline for marking to market on recent acquisitions? - Management expects to see movement in marking to market for acquisitions starting in the middle of next year [55]

Financial Data and Key Metrics Changes - The company reported a Core FFO of $14.4 million for Q1 2025, an increase of $3.7 million compared to $10.7 million in Q1 2024 [14] - On a per share basis, Core FFO was $0.46 in Q1 2025, down from $0.48 in Q1 2024, primarily due to reduced leverage and downtime from re-leasing anchor spaces [15] - The net debt to EBITDA ratio was 6.6 times at quarter end, slightly elevated from the previous quarter but a full turn lower than one year ago [14] Business Line Data and Key Metrics Changes - The company signed over 112,000 square feet of new leases, renewals, and extensions at an average rent of $24.14 per square foot, nearly 25% higher than the in-place portfolio average of $19.41 per square foot [7] - The portfolio was 93.8% leased and 91% occupied at quarter end [8] Market Data and Key Metrics Changes - The company acquired Ashley Park for $79.8 million, with a cash cap rate near the high end of guidance, indicating strong market interest [5] - The company has a signed not open leasing pipeline of $4 million in annual base rent, representing 4% of cash rents at quarter end [9] Company Strategy and Development Direction - The company continues to focus on acquiring properties in the Southeast and Southwest, with a strong pipeline of potential acquisitions [6] - The company is optimistic about re-leasing opportunities for 10 anchor spaces previously leased to tenants that filed for bankruptcy, expecting a positive cash leasing spread of 40% to 60% [8] Management's Comments on Operating Environment and Future Outlook - Management noted that leasing activity remains strong despite recent tariff uncertainties, with a well-diversified tenant base [9] - The company reaffirmed its full-year 2025 guidance for Core FFO per share of $1.80 to $1.86 and AFFO of $1.93 to $1.98 [16] Other Important Information - The company executed two SOFR swaps, fixing SOFR for $100 million of principal at a weighted average rate of 3.32% for five years, reducing the applicable interest rate significantly [11] - The company extinguished its 3.875% convertible notes for approximately $71.2 million, resulting in a debt extinguishment charge of about $20.5 million to be recorded in Q2 [13] Q&A Session Summary Question: Can you provide more detail on the anchor space negotiations? - Management indicated that leasing activity has been consistent and strong, with no pauses in discussions despite market volatility [21] Question: What drove the new lease spreads? - The new lease spreads were primarily driven by two significant leases that accounted for a large portion of the new leasing activity, resulting in spreads over 80% [23] Question: How much CapEx is required for the bankrupt tenant spaces? - The expected CapEx for re-leasing is in the range of $9 million to $12 million, covering all landlord work and commissions [30] Question: What is the expected timeframe for tenants to start paying rent after signing a lease? - A safe estimate for rent commencement is around one year, although some tenants may move in more quickly [31] Question: How does the company plan to fund new investments? - The company plans to handle funding internally with existing liquidity and is considering selling its remaining office property towards the end of the year [32] Question: Have cap rates changed since the tariff announcement? - There has been no increase in cap rates for traditional core assets, with the market remaining strong for retail shopping centers [50] Question: What is the mark-to-market upside for the Ashley Park acquisition? - The company sees opportunities for a mark-to-market upside of 10% to 20% for the Ashley Park acquisition, with significant leasing potential [58] Question: How much of the CapEx has already been spent? - Very little of the CapEx has been spent so far, as tenants need to complete their work before reimbursements begin [59] Question: Is the investment pipeline still primarily core property investments? - The company is starting to see more diverse investment opportunities and is excited about potential activity in the coming months [63]

Core Insights - CTO Realty reported $35.81 million in revenue for Q1 2025, a year-over-year increase of 27.3% [1] - The earnings per share (EPS) for the same period was $0.49, compared to $0.20 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $34.91 million by 2.58% [1] - The EPS also surpassed the consensus estimate of $0.48 by 2.08% [1] Revenue Breakdown - Interest Income from Commercial Loan and Investments was $2.96 million, exceeding the estimated $2.72 million [4] - Management Fee Income was $1.18 million, slightly above the estimated $1.14 million, representing a 6.6% increase compared to the previous year [4] - Net Earnings per Share (Diluted) was $0.01, significantly better than the estimated -$0.49 [4] Stock Performance - CTO Realty shares have returned -6% over the past month, while the Zacks S&P 500 composite has changed by -0.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

CTO Realty (CTO) came out with quarterly funds from operations (FFO) of $0.49 per share, beating the Zacks Consensus Estimate of $0.48 per share. This compares to FFO of $0.52 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of 2.08%. A quarter ago, it was expected that this real estate company would post FFO of $0.48 per share when it actually produced FFO of $0.49, delivering a surprise of 2.08%.Over the last four quarters, the compa ...

May 2025 First Quarter 2025 Investor Presentation Ashley Park | Atlanta, GA Highlights Q1 2025 Highlights | $80mm | Investment activity | | --- | --- | | $225 | Implied property value per square foot | | ~109,400 | Square feet of comparable leasing activity | | 37% | Comparable leasing spread | | 83% | ABR from Georgia, Texas, Florida & North Carolina | | ~191,000 | Portfolio 5-mile population | | 6.6x | Net Debt to Pro Forma Adjusted EBITDA | | 2.4% | Same-Property NOI quarter-over-quarter growth | $496M $ ...

Revenue Performance - Total revenue for Q1 2025 increased to $35.8 million, a 27.3% increase from $28.1 million in Q1 2024, primarily due to increased income from recent property acquisitions and same-store revenue growth [202]. - Revenue from income properties was $31.7 million in Q1 2025, up 28.6% from $24.6 million in Q1 2024, with operating income rising to $22.8 million from $17.8 million [203]. - Interest income from commercial loans and investments reached $3.0 million in Q1 2025, a 119.2% increase from $1.4 million in Q1 2024, driven by new loan originations [205]. Portfolio and Investment Strategy - The current portfolio consists of 18 multi-tenant properties generating $98.3 million in annualized revenue and 6 single-tenant properties generating $5.4 million, both with a weighted average remaining lease term of 4.9 years [199]. - The company focuses on investing in high-quality retail and mixed-use properties in fast-growing, business-friendly markets [191]. - The investment strategy includes a continual review of the existing income property portfolio to identify opportunities for capital recycling based on performance and market conditions [198]. Expenses and Income - Total general and administrative expenses increased by 11.1% to $4.683 million for the three months ended March 31, 2025, compared to $4.216 million in the same period of 2024 [207]. - Depreciation and amortization rose by $3.4 million to $14.3 million for the three months ended March 31, 2025, driven by growth in the income property portfolio [209]. - Net income attributable to the company decreased by $3.5 million to $2.3 million for the three months ended March 31, 2025, primarily due to the absence of gains on asset dispositions [216]. Cash Flows - Cash flows provided by operating activities totaled $10.3 million for the three months ended March 31, 2025, down from $11.8 million in the same period of 2024, a decrease of $1.5 million [218]. - Cash flows used in investing activities increased by $28.6 million to $80.6 million for the three months ended March 31, 2025, compared to $52.0 million in 2024, due to decreased disposition activity [219]. - Cash flows provided by financing activities increased by $31.1 million to $68.3 million for the three months ended March 31, 2025, compared to $37.2 million in 2024 [220]. Acquisitions and Future Investments - The company acquired one multi-tenant income property for $79.5 million during the three months ended March 31, 2025, compared to $71.0 million for acquisitions in the same period of 2024 [222]. - The company expects 2025 investments in income-producing properties to range from $100.0 million to $200.0 million [223]. Shareholder Returns - The company declared and paid dividends of $0.40 for preferred stock and $0.38 for common stock, consistent with the previous year [238]. - Funds from operations (FFO) attributable to common stockholders increased to $14.894 million, up 37.5% from $10.797 million year-over-year [242]. - Adjusted funds from operations (AFFO) attributable to common stockholders rose to $15.521 million, a 33.1% increase compared to $11.648 million in the prior year [242].