CTO Realty Growth Reports Third Quarter 2024 Operating Results

Core Insights - CTO Realty Growth, Inc. reported strong operating results for Q3 2024, with net income per diluted share of $0.17 and significant increases in Core FFO and AFFO [1][2] - The company raised $125.7 million through its common stock ATM offering and closed a new $100 million unsecured term loan with an initial effective interest rate of 4.7% [1][2] - Full-year guidance for Core FFO was increased to a range of $1.83 to $1.87 per diluted share, and for AFFO to a range of $1.96 to $2.00 per diluted share [1][21] Quarterly Financial Results Highlights - Net income attributable to common stockholders increased to $4.35 million, a 191.7% increase from the prior year [2] - Core FFO attributable to common stockholders was $12.63 million, up 20.8% year-over-year, with Core FFO per diluted share at $0.50, a 6.4% increase [2] - AFFO attributable to common stockholders reached $13.14 million, a 22.1% increase, with AFFO per diluted share at $0.51, a 6.3% increase [2] Investment Activities - The company invested $191.3 million in Q3 2024, achieving a weighted average yield of 9.5% [7] - Key investments included the acquisition of three open-air shopping centers for $137.5 million and a $43.8 million first mortgage loan with an initial yield of 11% [7] - Year-to-date investments totaled $273.8 million, with a weighted average cash yield of 9.1% [8] Dispositions - In Q3 2024, the company sold a property for $18.0 million at an exit cap rate of 9.2% [9] - Year-to-date, two retail properties were sold for $38.0 million, generating an aggregate gain of $3.8 million [9] Portfolio Summary - As of September 30, 2024, the company's portfolio consisted of 22 properties with a total of 4.6 million square feet and a leased occupancy rate of 95.8% [10] - The portfolio is primarily retail-focused, with 66.5% of cash base rent coming from retail properties [10] Same-Property Net Operating Income (NOI) - Same-Property NOI for Q3 2024 totaled $16.8 million, reflecting a 6.3% increase from the prior year [11] - Year-to-date Same-Property NOI was $44.6 million, a 5.1% increase compared to the same period last year [12] Leasing Activity - In Q3 2024, the company signed 20 leases totaling 201,806 square feet, with a comparable cash base rent growth of 12.0% [13] - Year-to-date, 54 leases were signed totaling 384,513 square feet, with a comparable cash base rent growth of 26.0% [14] Capital Markets and Balance Sheet - The company issued 6,851,375 common shares under its ATM offering program, raising $125.7 million [15] - As of September 30, 2024, the company had $213 million in liquidity and a net debt to total enterprise value ratio of 43.1% [15][19] Dividends - A cash dividend of $0.38 per share was declared for common stock, representing a payout ratio of 76.0% of the company's Q3 2024 Core FFO per share [20] 2024 Outlook - The company revised its 2024 outlook, projecting Same-Property NOI growth of 4% to 6% and total investments between $300 million and $350 million [21]