CTO Realty Growth-CTO Realty Boosts Portfolio With Ashley Park Acquisition in Atlanta

Group 1: Acquisition Details - CTO Realty Growth, Inc. announced the acquisition of Ashley Park in Atlanta, GA, for $79.8 million, enhancing its presence in its largest market [1] - The lifestyle center spans 559,000 square feet and is located on 60 acres in the Newnan submarket, benefiting from a prime location along I-85, attracting over 6 million annual visits with 93% occupancy [2] Group 2: Strategic Importance - Approximately 82% of CTO's annual base rent is derived from assets in Georgia, Florida, Texas, or North Carolina, with Dick's Sporting Goods becoming the company's fifth largest tenant following this acquisition [3] - The acquisition expands CTO Realty's portfolio by 12%, increasing the total to 5.2 million square feet, and was purchased below replacement value with below-market rents, allowing for potential long-term value enhancement [4] Group 3: Financial Performance - CTO Realty completed$ 330.8 million of investments in 2024 at a weighted average initial cash yield of 9.3% [5] - The company signed 70 leases totaling 452,301 square feet in 2024, with an average cash base rent of $23.36 per square foot, reflecting a 23% increase from the previous average of$ 18.99 per square foot [6] Group 4: Market Context - Broader market concerns include potential shifts in trade policies that could worsen inflation and restrain consumer spending, which may lead the Federal Reserve to maintain high interest rates, adversely affecting interest-sensitive retail REITs [7] - Shares of CTO Realty have declined 2% over the past six months, slightly better than the real estate market's decline of 2.2% [7]