CTO Realty Growth(US:CTO)2024-10-24 20:21Revenue Performance - Total revenue for Q3 2024 increased to $31.8 million, up 11.7% from $28.5 million in Q3 2023, primarily due to increased income from recent property acquisitions [191]. - Revenue from income property operations was $28.5 million in Q3 2024, reflecting a 13.3% increase from $25.2 million in Q3 2023, driven by growth and lease-up of the income property portfolio [193]. - Total revenue for the nine months ended September 30, 2024, increased to $88.7 million, a 12.0% increase from $79.2 million in the same period of 2023 [205]. - Revenue from income property operations totaled $79.0 million, reflecting an increase of $8.6 million or 12.3% compared to $70.4 million in 2023 [206]. - Total revenue for the three months ended September 30, 2024, increased to $31.8 million, a rise of 11.7% compared to $28.5 million in the same period of 2023 [191]. Income and Expenses - Net income attributable to the Company for the three months ended September 30, 2024, was $6.2 million, compared to $2.7 million in 2023, marking a significant increase [204]. - General and administrative expenses increased due to a higher employee count resulting from increased operating activity related to managed income property assets [197]. - Depreciation and amortization expenses rose to $13.2 million in Q3 2024, up from $11.7 million in Q3 2023, due to growth in the income property portfolio [198]. - Total general and administrative expenses for the nine months ended September 30, 2024, were $11.75 million, a 12.0% increase from $10.49 million in 2023 [217]. - Total general and administrative expenses for the three months ended September 30, 2024, were $4.1 million, an increase of 18.5% from $3.4 million in 2023 [199]. Investment Activity - The company acquired properties for a total purchase price of $210.0 million during the nine months ended September 30, 2024, compared to $80.0 million in the same period of 2023 [225]. - The company originated structured investments totaling $63.8 million during the nine months ended September 30, 2024, compared to $15.0 million in the same period of 2023 [225]. - The company expects to invest between $300.0 million and $350.0 million in income-producing properties in 2024 [226]. - The company acquired real estate properties for a total purchase price of $210.0 million during the nine months ended September 30, 2024 [241]. - The company’s total acquisition cost for real estate properties was $207.8 million for the nine months ended September 30, 2024, compared to $80.3 million for the same period in 2023, indicating a strategic expansion in property holdings [241]. Cash Flow - Cash flows provided by operating activities totaled $45.8 million for the nine months ended September 30, 2024, compared to $39.9 million in 2023, an increase of $5.9 million [222]. - Cash flows used in investing activities increased by $117.0 million to $215.3 million for the nine months ended September 30, 2024, compared to $98.3 million in the same period of 2023 [223]. - Cash flows provided by financing activities rose by $94.8 million to $161.6 million for the nine months ended September 30, 2024, compared to $66.8 million in the same period of 2023 [224]. Interest Income and Expense - Interest income from commercial loans and investments rose to $1.6 million in Q3 2024, a 45.0% increase from $1.1 million in Q3 2023, attributed to new loan originations [195]. - Interest expense decreased to $5.6 million for the three months ended September 30, 2024, down from $6.3 million in 2023, primarily due to a reduction in the average outstanding balance [203]. - Interest income from commercial loans and investments increased to $4.4 million for the nine months ended September 30, 2024, up from $3.0 million in 2023, a 48.6% increase [208]. - Interest expense increased by $0.6 million to $16.8 million for the nine months ended September 30, 2024, compared to $16.2 million in 2023 [220]. Shareholder Returns - The company declared dividends of $0.38 per common share for the three months ended September 30, 2024, consistent with the same amount declared in the previous year [240]. - The diluted FFO per common share for the three months ended September 30, 2024, was $0.49, compared to $0.44 for the same period in 2023, representing an increase of 11.4% [240]. - Funds from operations (FFO) attributable to common stockholders for the nine months ended September 30, 2024, was $32,893,000, up from $27,144,000 in 2023, reflecting a 21.4% increase [240]. - Core FFO attributable to common stockholders for the three months ended September 30, 2024, was $12,633,000, compared to $10,462,000 in 2023, indicating a 20.9% increase [240]. - Adjusted funds from operations (AFFO) attributable to common stockholders for the nine months ended September 30, 2024, was $35,840,000, compared to $31,410,000 in 2023, marking a 14.8% increase [240]. Property Portfolio - The current portfolio of 16 multi-tenant properties generates $85.8 million in annualized revenue from base lease payments, with a weighted average remaining lease term of 5.0 years [190]. - The company owns and manages 22 commercial real estate properties across seven states, totaling 4.6 million square feet of gross leasable space as of September 30, 2024 [183]. - The company sold two income properties for a total of $38.0 million during the nine months ended September 30, 2024, resulting in aggregate gains of $3.8 million [189]. - The company sold one multi-tenant income property for $18.0 million during the three months ended September 30, 2024, resulting in a loss of $0.8 million [200]. - The company sold its portfolio of subsurface mineral interests associated with approximately 352,000 surface acres in Florida during the nine months ended September 30, 2024 [184]. Financial Position and Credit Facility - As of September 30, 2024, the company had a $300.0 million Credit Facility with $205.0 million undrawn commitment remaining [224]. - As of September 30, 2024, the outstanding balance on the company's $300.0 million Credit Facility was $95.0 million, with $45.0 million not fixed by an interest rate swap agreement [244]. - The company has a $300.0 million Credit Facility with variable interest rates ranging from SOFR plus 0.10% plus 125 basis points to SOFR plus 0.10% plus 220 basis points based on borrowing levels [244]. - A hypothetical change in interest rates of 100 basis points would affect the company's financial position by $0.5 million as of September 30, 2024 [244]. - The company entered into interest rate swap agreements to hedge against fluctuations in interest rates related to certain debt borrowings [244].