CTO Realty Growth(US:CTO)2025-10-28 20:21Revenue Performance - Total revenue for Q3 2025 increased to $37.8 million, up 18.7% from $31.8 million in Q3 2024, primarily due to increased income from recent property acquisitions and same-store revenue growth [218]. - Revenue from income properties was $33.4 million in Q3 2025, a 17.2% increase from $28.5 million in Q3 2024, driven by portfolio growth and leasing activity [219]. - Total revenue for the nine months ended September 30, 2025 increased to $111.2 million, a 25.3% increase from $88.8 million in the same period of 2024 [233]. - Income properties revenue rose by $19.5 million, or 24.6%, to $98.5 million for the nine months ended September 30, 2025, compared to $79.0 million in 2024 [234]. - For the three months ended September 30, 2025, total revenue increased to $37.8 million, a rise of 18.7% compared to $31.8 million for the same period in 2024 [218]. Income and Expenses - Net income attributable to the Company for the nine months ended September 30, 2025 was $(18.2) million, a decrease of $31.5 million from $13.3 million in 2024, primarily due to a $20.4 million loss on extinguishment of debt [247]. - General and administrative expenses for the nine months ended September 30, 2025 totaled $13.9 million, an 18.4% increase from $11.8 million in 2024 [238]. - Interest expense increased to $19.8 million for the nine months ended September 30, 2025, up $3.0 million from $16.8 million in 2024 [245]. - Depreciation and amortization for the nine months ended September 30, 2025 totaled $44.6 million, an increase of $8.9 million from $35.7 million in 2024 [239]. Cash Flow and Financing - Cash flows provided by operating activities totaled $57.7 million for the nine months ended September 30, 2025, an increase of $11.9 million from $45.8 million in 2024 [249]. - Cash flows from financing activities decreased to $37.8 million for the nine months ended September 30, 2025, down from $161.6 million in the same period of 2024, a decrease of $123.8 million [251]. - Total cash and cash equivalents at September 30, 2025 were $9.3 million, with restricted cash totaling $8.3 million [248]. Property Transactions and Investments - The company sold three single-tenant income properties for $7.1 million during the nine months ended September 30, 2025, generating gains of $1.2 million [214]. - The company acquired one multi-tenant income property for $79.5 million during the nine months ended September 30, 2025, compared to four properties for $210.0 million in the same period of 2024 [254]. - The company expects to invest between $100.0 million and $200.0 million in income-producing properties in 2025, funded through various sources including cash on hand and borrowings [255]. - The company completed acquisitions of real estate totaling $79.5 million for the nine months ended September 30, 2025 [276]. Funds from Operations - Funds from Operations (FFO) for the nine months ended September 30, 2025, were $30.8 million, down from $37.8 million in the same period of 2024 [274]. - Adjusted Funds From Operations (AFFO) attributable to common stockholders for the nine months ended September 30, 2025, were $47.1 million, compared to $35.8 million in 2024 [274]. - Core FFO attributable to common stockholders for the three months ended September 30, 2025, was $15.6 million for the three months ended September 30, 2025, compared to $12.6 million in the same period of 2024 [1]. - AFFO attributable to common stockholders was $16.3 million for the three months ended September 30, 2025, compared to $13.1 million in the prior year [1]. Portfolio and Market Strategy - The company has a strategy focused on investing in high-quality retail and mixed-use properties in fast-growing markets with favorable business conditions [206]. - The company maintains a strategy to diversify its portfolio and increase income-producing properties primarily in larger metropolitan areas and growth markets [261]. - The current portfolio of 18 multi-tenant properties generates $99.6 million in annualized revenue with a weighted average remaining lease term of 4.9 years as of September 30, 2025 [215]. - As of September 30, 2025, the company owned and managed 21 commercial real estate properties, totaling 5.2 million square feet of gross leasable space [207]. Fair Value and Stock Performance - As of September 30, 2025, the fair value of the company's investment in Alpine Income Property Trust, Inc. (PINE) totaled $35.0 million, representing 16.1% of PINE's outstanding equity [212]. - The closing stock price of PINE decreased by $2.62 per share to $14.17 on September 30, 2025, resulting in an unrealized non-cash loss of $(6.2) million [243].