CTO Realty Growth(CTO) - 2022 Q3 - Quarterly Report

PART I—FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS 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] - The company's business segments include income properties, management services, commercial loans and investments, and real estate operations[38][39][40][41] - 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][47][54] Consolidated Balance Sheets 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 | $13,924 | 3.23% | Consolidated Statements of Operations Total revenues increased for both three and nine-month periods, but net income significantly decreased due to lower gains on asset disposition Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | Change ($) | 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 | $(1.37) | -90.13% | Consolidated Statements of Comprehensive Income Total comprehensive income decreased for both three and nine-month periods, despite a substantial increase in cash flow hedging derivative gains Consolidated Statements of Comprehensive Income Highlights (in thousands) | Metric | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | Change ($) | 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 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 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 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] - Business segments include income properties, management services (for PINE), commercial loans and investments, and real estate operations (subsurface mineral interests and mitigation credits)[39][40][41] - 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][84] - 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][168] - 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][244] NOTE 1. DESCRIPTION OF BUSINESS 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=