CTO Realty Growth(US:CTO)2021-02-19 18:17Financial Data and Key Metrics Changes - For the full year of 2020, total revenues increased by 25% to $56.4 million, with fourth-quarter revenues of $16 million representing a more than 33% increase over Q4 2019 [21][22]. - Funds from operations (FFO) for Q4 2020 were $10.1 million or $2.11 per diluted share, a 174% year-over-year increase, while adjusted funds from operations (AFFO) were $10.6 million or $2.20 per diluted share, representing a 210% increase [24][26]. - The company reported a fourth-quarter cash dividend of $1 per share, with a payout ratio of 47% of FFO per share and 45% of AFFO per share [28]. Business Line Data and Key Metrics Changes - The company acquired four properties for $185.1 million in 2020, with a weighted average cap rate of 7.8%, and sold four assets in Q4 for nearly $35 million at a weighted average cap rate of 6.1% [7][8]. - The net spread on investments was approximately 260 basis points, with a weighted average disposition cap rate of 5.2% compared to the acquisition cap rate of 7.8% [9]. Market Data and Key Metrics Changes - The portfolio consisted of 27 properties with 2.5 million square feet of rentable space, 93% occupied, with significant tenants including Wells Fargo and Fidelity [13]. - Nearly 90% of rents come from metropolitan statistical areas (MSAs) with over a million people, and 84% from the top 30 markets according to the Urban Land Institute [15]. Company Strategy and Development Direction - The company is focused on a diversified real estate investment strategy, emphasizing investments in states and markets with positive business trends and above-average population and job growth [6]. - The strategy includes recycling capital from approximately $150 million of existing single-tenant assets into multi-tenanted retail and office assets for better risk-adjusted returns [19]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about property-level initiatives and leasing activity, with a focus on rebranding and upgrading properties to drive growth [16][18]. - There is recognition of uncertainty regarding the operational performance of existing and prospective tenants, but the company believes it is well-positioned to execute its investment strategy [19]. Other Important Information - The company expects total disposition volume in 2021 to be between $75 million and $125 million, with targeted investment yields between 6.75% and 7.25% [37]. - The 2021 guidance anticipates FFO per share between $3.80 and $4.10, and AFFO per share guidance of $3.90 to $4.20 [38]. Q&A Session Summary Question: What does the acquisition pipeline look like today? - The company has $28 million in cash and is actively seeking multi-tenanted retail properties in strong markets [40]. Question: Is the focus on mixed-use opportunities? - The company is looking at mixed-use opportunities as capital for such acquisitions has diminished, presenting good opportunities [41]. Question: Does the 2021 guidance include the land sale gain? - Yes, the guidance includes the $1.8 million land sale gain [42]. Question: What is the recurring FFO per share in Q4? - Existing NOI is a little over $35 million, with adjustments for non-core assets affecting AFFO [48]. Question: What are the expectations for recovering deferred rent in 2021? - The company expects to recover about $400,000 in deferred rent throughout 2021, with collections extending into 2023 [59].