CTO Realty Growth Reports Third Quarter 2022 Operating

WINTER PARK, Fla., Oct. 27, 2022 (GLOBE NEWSWIRE) — CTO Realty Growth, Inc. (NYSE: CTO) (the “Company” or “CTO”) immediately introduced its working outcomes and earnings for the quarter ended September 30, 2022.

Select Highlights

• Reported Net Income per diluted share attributable to frequent stockholders of $0.19 for the quarter ended September 30, 2022.
• Reported Core FFO per diluted share attributable to frequent stockholders of $0.47 for the quarter ended September 30, 2022, a rise of 38.2% from the comparable prior 12 months interval.
• Reported AFFO per diluted share attributable to frequent stockholders of $0.49 for the quarter ended September 30, 2022, a rise of 36.1% from the comparable prior 12 months interval.
• Acquired Madison Yards, a newly constructed, grocery-anchored retail property positioned in Atlanta, Georgia for a purchase order value of $80.2 million. The buy value represents a going-in cap charge under the vary of the Company’s prior steerage for preliminary money yields.
• Sold two single tenant retail properties, the Company’s sole remaining multi-tenant workplace property and one multi-tenant retail property for whole disposition quantity of $57.0 million at a weighted common exit cap charge of 6.3%, producing whole beneficial properties of $5.0 million.
• Reported a 12.0% enhance in Same-Property NOI through the quarter ended September 30, 2022, as in comparison with the comparable prior 12 months interval.
• Expanded revolving credit score facility from $210 million to $300 million, prolonged the revolving credit score facility’s maturity date to January 2027, and entered into a brand new fixed-rate $100 million unsecured time period mortgage with a maturity date of January 2028.
• Paid a $0.38 per share frequent inventory money dividend for the third quarter of 2022, which represented a 14.0% enhance from the comparable prior 12 months interval quarterly frequent inventory money dividend and an annualized yield of seven.6% primarily based on the closing value of the Company’s frequent inventory on October 26, 2022.
• On October 14, 2022, the Company acquired West Broad Village, a mixed-use, grocery-anchored way of life property in Richmond, Virginia for a purchase order value of $93.9 million. The buy value represents a going-in cap charge above the vary of the Company’s prior steerage for preliminary money yields.

CEO Comments

“We’ve had a very strong few months of asset recycling as we continue to make good progress refining our high-quality, retail-focused portfolio. Our newly built grocery-anchored Madison Yards (Publix) asset in Atlanta, Georgia, and our grocery-anchored West Broad Village (Whole Foods) property in Richmond, Virginia are excellent additions as we continue to add exposure to well-performing markets and attractive demographics,” stated John P. Albright, President and Chief Executive Officer of CTO Realty Growth. “These new grocery-anchored acquisitions, combined with our 7.6% current dividend yield, accretive dispositions, 21.5% year-to-date same-store NOI growth, strong leasing activity, newly expanded credit facility and fixed-rate term loan have us well-positioned to drive attractive risk-adjusted cash flows for our shareholders. As we look forward into 2023, we’re confident our shadow disposition pipeline of single tenant office properties and more than $200 million of available liquidity gives us ample capacity to be opportunistic in the quickly evolving transaction market.”

Quarterly Financial Results Highlights

The tables under present a abstract of the Company’s working outcomes for the three months ended September 30, 2022:

Year-to-Date Financial Results Highlights

The tables under present a abstract of the Company’s working outcomes for the 9 months ended September 30, 2022:

Investments

During the three months ended September 30, 2022, the Company acquired Madison Yards, a 162,500 sq. foot grocery-anchored property positioned within the Inman Park/Reynoldstown submarket alongside the Memorial Drive hall of Atlanta, Georgia for a purchase order value of $80.2 million. The property is 99% occupied, anchored by Publix and AMC Theatres, features a well-crafted combine of outlets and eating places, together with AT&T, First Watch, and Orangetheory Fitness. The buy value represents a going-in cap charge under the vary of the Company’s prior steerage for preliminary money yields.

During the 9 months ended September 30, 2022, the Company acquired two multi-tenant retail properties for whole earnings property acquisition quantity of $119.3 million and originated three structured investments to offer $57.7 million of funding in direction of three retail and mixed-use properties. These acquisitions and structured investments symbolize a blended weighted common going-in yield of seven.2%.

Subsequent to quarter-end, the Company acquired West Broad Village, a 392,000 sq. foot grocery-anchored way of life property positioned within the Short Pump submarket of Richmond, Virginia for a purchase order value of $93.9 million. The property, anchored by Whole Foods and REI, is 83% occupied and comprised of roughly 315,600 sq. toes of retail and 76,400 sq. toes of complementary workplace and consists of a gorgeous mixture of nationwide and native tenants spanning the grocery, meals & beverage, leisure, training, residence décor, childcare and medical sectors.  The buy value represents a going-in cap charge above the vary of the Company’s prior steerage for preliminary money yields.

Dispositions

During the three months ended September 30, 2022, the Company bought two single tenant retail properties, its sole remaining multi-tenant workplace property, and one multi-tenant retail property in Hialeah, Florida that was categorized as a industrial mortgage funding because of the tenant’s repurchase possibility. Total disposition quantity was $57.0 million at a weighted common exit cap charge of 6.3%, producing whole beneficial properties of $5.0 million.

During the 9 months ended September 30, 2022, the Company bought six properties, two of which have been categorized as a industrial mortgage funding because of the respective tenants’ repurchase choices, for $81.1 million at a weighted common exit cap charge of 6.2%.

Income Property Portfolio

The Company’s earnings property portfolio consisted of the next as of September 30, 2022:

Square toes in 1000’s.

Operational Highlights

The Company’s Same-Property NOI totaled $8.5 million through the third quarter of 2022, a rise of 12.0% over the comparable prior 12 months interval, as offered within the following desk.

During the third quarter of 2022, the Company signed leases totaling 75,231 sq. toes. A abstract of the Company’s leasing exercise is as follows:

In 1000’s apart from per sq. foot and lease time period knowledge.

Subsurface Interests and Mitigation Credits

During the three months ended September 30, 2022, the Company bought roughly 1,500 acres of subsurface oil, gasoline, and mineral rights for $0.7 million, leading to mixture beneficial properties of $0.7 million.

During the 9 months ended September 30, 2022, the Company bought roughly 14,582 acres of subsurface oil, gasoline and mineral rights for $1.6 million, leading to a acquire on the sale of $1.5 million. As of September 30, 2022, the Company owns full or fractional subsurface oil, gasoline, and mineral pursuits underlying roughly 355,000 “surface” acres of land owned by others in 19 counties in Florida.

During the three months ended September 30, 2022, the Company bought roughly 24.7 state mitigation credit for $2.3 million, leading to mixture beneficial properties of $0.7 million.

During the 9 months ended September 30, 2022, the Company bought roughly 26.6 state mitigation credit for $2.6 million, leading to a acquire on the sale of $0.8 million.

Capital Markets and Balance Sheet

During the quarter ended September 30, 2022, the Company accomplished the next notable capital markets exercise:

• On September 20, 2022, the Company amended its senior unsecured Credit Facility. The Credit Facility was elevated to $565 million and is comprised of a $300 million unsecured revolving credit score facility, a brand new $100 million unsecured 2028 time period mortgage, and the Company’s current $165 million of unsecured time period loans (altogether, the “Credit Facility”). The Credit Facility consists of structural adjustments to sure monetary covenants, a sustainability-linked pricing part that reduces the relevant rate of interest margin if the Company meets sure sustainability efficiency targets, and an accordion possibility that enables the Company to request extra commitments as much as a complete of $750 million.
• Issued 565,687 frequent shares below its ATM providing program at a weighted common gross value of $22.02 per share, for whole internet proceeds of $12.3 million.
• Repurchased 85,694 shares for about $1.6 million at a weighted common gross value of $19.17 per share.
• Completed a three-for-one inventory break up and started buying and selling on the post-split value on July 1, 2022. The inventory break up was effected within the type of a inventory dividend of two extra shares of frequent inventory for every excellent share of frequent inventory held as of the report date for the inventory dividend.

The following desk gives a abstract of the Company’s long-term debt, at face worth, as of September 30, 2022:

As of September 30, 2022, the Company’s internet debt to Pro Forma EBITDA was 6.4 occasions, and as outlined within the Company’s credit score settlement, the Company’s mounted cost protection ratio was 3.4 occasions. As of September 30, 2022, the Company’s internet debt to whole enterprise worth was 43.2%. The Company calculates whole enterprise worth because the sum of internet debt, par worth of its 6.375% Series A most popular fairness, and the market worth of the Company’s excellent frequent shares.

Dividends

On August 22, 2022, the Company introduced a money dividend on its frequent inventory and Series A Preferred inventory for the third quarter of 2022 of $0.38 per share and $0.40 per share, respectively, payable on September 30, 2022 to stockholders of report as of the shut of business on September 12, 2022. The third quarter 2022 frequent inventory money dividend represents a 14.0% enhance over the comparable prior 12 months interval quarterly dividend and a payout ratio of 80.9% and 77.6% of the Company’s third quarter 2022 Core FFO per diluted share and AFFO per diluted share, respectively.

2022 Outlook

The Company has elevated its outlook for 2022 to consider the Company’s year-to-date efficiency and revised expectations relating to the Company’s funding actions, forecasted capital markets transactions, leasing exercise, and different important assumptions.

The Company’s elevated outlook for 2022 is as follows:  

third Quarter Earnings Conference Call & Webcast

The Company will host a convention name to current its working outcomes for the quarter ended September 30, 2022 on Friday, October 28, 2022, at 9:00 AM ET.

A stay webcast of the decision will probably be obtainable on the Investor Relations web page of the Company’s web site at www.ctoreit.com or on the hyperlink offered within the occasion particulars under. To entry the decision by telephone, please go to the hyperlink offered within the occasion particulars under and you can be supplied with dial-in particulars.

Webcast: https://edge.media-server.com/mmc/p/haf26ajs

Dial-In: https://register.vevent.com/register/BI7d526face25a498fb3ea12784d73ae34 

We encourage contributors to dial into the convention name at the very least fifteen minutes forward of the scheduled begin time. A replay of the earnings name will probably be archived and obtainable on-line via the Investor Relations part of the Company’s web site at www.ctoreit.com.

About CTO Realty Growth, Inc.

CTO Realty Growth, Inc. is a publicly traded actual property funding belief that owns and operates a portfolio of high-quality, retail-based properties positioned primarily in larger development markets within the United States. CTO additionally externally manages and owns a significant curiosity in Alpine Income Property Trust, Inc. (NYSE: PINE), a publicly traded internet lease REIT.

We encourage you to evaluation our most up-to-date investor presentation and supplemental monetary info, which is accessible on our web site at www.ctoreit.com.

Safe Harbor

Certain statements contained on this press launch (apart from statements of historic reality) are forward-looking statements throughout the that means of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can usually be recognized by phrases equivalent to “believe,” “estimate,” “expect,” “intend,” “anticipate,” “will,” “could,” “may,” “should,” “plan,” “potential,” “predict,” “forecast,” “project,” and related expressions, in addition to variations or negatives of those phrases.

Although forward-looking statements are made primarily based upon administration’s current expectations and affordable beliefs regarding future developments and their potential impact upon the Company, a lot of components might trigger the Company’s precise outcomes to vary materially from these set forth within the forward-looking statements. Such components might embrace, however will not be restricted to: the Company’s means to stay certified as a REIT; the Company’s publicity to U.S. federal and state earnings tax regulation adjustments, together with adjustments to the REIT necessities; common opposed financial and actual property circumstances; macroeconomic and geopolitical components, together with however not restricted to inflationary pressures, rate of interest volatility, world provide chain disruptions, and ongoing geopolitical struggle; the final word geographic unfold, severity and period of pandemics such because the COVID-19 Pandemic and its variants, actions that could be taken by governmental authorities to include or tackle the affect of such pandemics, and the potential detrimental impacts of such pandemics on the worldwide economy and the Company’s monetary situation and outcomes of operations; the shortcoming of main tenants to proceed paying their lease or obligations on account of chapter, insolvency or a common downturn of their business; the loss or failure, or decline within the business or property of PINE; the completion of 1031 change transactions; the provision of funding properties that meet the Company’s funding objectives and standards; the uncertainties related to acquiring required governmental permits and satisfying different closing circumstances for deliberate acquisitions and gross sales; and the uncertainties and threat components mentioned within the Company’s Annual Report on Form 10-Ok for the fiscal 12 months ended December 31, 2021 and different dangers and uncertainties mentioned once in a while within the Company’s filings with the U.S. Securities and Exchange Commission.

There may be no assurance that future developments will probably be in accordance with administration’s expectations or that the impact of future developments on the Company will probably be these anticipated by administration. Readers are cautioned to not place undue reliance on these forward-looking statements, which converse solely as of the date of this press launch. The Company undertakes no obligation to replace the data contained on this press launch to replicate subsequently occurring occasions or circumstances.

Non-GAAP Financial Measures

Our reported outcomes are offered in accordance with accounting ideas typically accepted within the United States of America (“GAAP”). We additionally disclose Funds From Operations (“FFO”), Core Funds From Operations (“Core FFO”), Adjusted Funds From Operations (“AFFO”), Pro Forma Earnings Before Interest, Taxes, Depreciation and Amortization (“Pro Forma EBITDA”), and Same-Property Net Operating Income (“Same-Property NOI”), every of that are non-GAAP monetary measures. We consider these non-GAAP monetary measures are helpful to buyers as a result of they’re broadly accepted trade measures utilized by analysts and buyers to match the working efficiency of REITs.

FFO, Core FFO, AFFO, Pro Forma EBITDA, and Same-Property NOI don’t symbolize money generated from working actions and will not be essentially indicative of money obtainable to fund money necessities; accordingly, they shouldn’t be thought-about alternate options to internet earnings as a efficiency measure or money flows from working actions as reported on our assertion of money flows as a liquidity measure and must be thought-about along with, and never in lieu of, GAAP monetary measures.

We compute FFO in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. NAREIT defines FFO as GAAP internet earnings or loss adjusted to exclude extraordinary objects (as outlined by GAAP), internet acquire or loss from gross sales of depreciable actual property property, impairment write-downs related to depreciable actual property property and actual property associated depreciation and amortization, together with the professional rata share of such changes of unconsolidated subsidiaries. The Company additionally excludes the beneficial properties or losses from gross sales of property incidental to the first business of the REIT which particularly embrace the gross sales of mitigation credit, affect price credit, subsurface gross sales, and land gross sales, along with the mark-to-market of the Company’s funding securities and curiosity associated to the 2025 Convertible Senior Notes, if the impact is dilutive. To derive Core FFO, we modify the NAREIT computation of FFO to incorporate different changes to GAAP internet earnings associated to beneficial properties and losses acknowledged on the extinguishment of debt, amortization of above- and below-market lease associated intangibles, and different unforecastable market- or transaction-driven non-cash objects. To derive AFFO, we additional modify the NAREIT computation of FFO and Core FFO to incorporate different changes to GAAP internet earnings associated to non-cash revenues and bills equivalent to straight-line rental income, non-cash compensation, and different non-cash amortization, in addition to including again the curiosity associated to the 2025 Convertible Senior Notes, if the impact is dilutive. Such objects might trigger short-term fluctuations in internet earnings however haven’t any affect on working money flows or long-term working efficiency. We use AFFO as one measure of our efficiency once we formulate company objectives.

To derive Pro Forma EBITDA, GAAP internet earnings or loss attributable to the Company is adjusted to exclude extraordinary objects (as outlined by GAAP), internet acquire or loss from gross sales of depreciable actual property property, impairment write-downs related to depreciable actual property property and actual property associated depreciation and amortization, together with the professional rata share of such changes of unconsolidated subsidiaries, non-cash revenues and bills equivalent to straight-line rental income, amortization of deferred financing prices, above- and below-market lease associated intangibles, non-cash compensation, and different non-cash earnings or expense. Cash curiosity expense can also be excluded from Pro Forma EBITDA, and GAAP internet earnings or loss is adjusted for the annualized affect of acquisitions, tendencies and different related actions.

To derive Same-Property NOI, GAAP internet earnings or loss attributable to the Company is adjusted to exclude extraordinary objects (as outlined by GAAP), acquire or loss on disposition of property, acquire or loss on extinguishment of debt, impairment fees, and depreciation and amortization, together with the professional rata share of such changes of unconsolidated subsidiaries, if any, non-cash revenues and bills equivalent to above- and below-market lease associated intangibles, straight-line rental income, and different non-cash earnings or expense. Interest expense, common and administrative bills, funding and different earnings or loss, earnings tax profit or expense, actual property operations revenues and direct value of revenues, administration price earnings, and curiosity earnings from industrial loans and investments are additionally excluded from Same-Property NOI. GAAP internet earnings or loss is additional adjusted to take away the affect of properties that weren’t owned for the complete present and prior 12 months reporting intervals offered. Cash rental earnings obtained below the leases pertaining to the Company’s property which can be offered as industrial loans and investments in accordance with GAAP can also be utilized in lieu of the curiosity earnings equal.

FFO is utilized by administration, buyers and analysts to facilitate significant comparisons of working efficiency between intervals and amongst our friends primarily as a result of it excludes the impact of actual property depreciation and amortization and internet beneficial properties or losses on gross sales, that are primarily based on historic prices and implicitly assume that the worth of actual property diminishes predictably over time, somewhat than fluctuating primarily based on current market circumstances. We consider that Core FFO and AFFO are extra helpful supplemental measures for buyers to think about as a result of they may assist them to raised assess our working efficiency with out the distortions created by different non-cash revenues or bills. We additionally consider that Pro Forma EBITDA is an extra helpful supplemental measure for buyers to think about because it permits for a greater evaluation of our working efficiency with out the distortions created by different non-cash revenues, bills or sure results of the Company’s capital construction on our working efficiency. We use Same-Property NOI to match the working efficiency of our property between intervals. It is an accepted and vital measurement utilized by administration, buyers and analysts as a result of it consists of all property-level revenues from the Company’s properties, much less working and upkeep bills, actual property taxes and different property-specific bills (“Net Operating Income” or “NOI”) of properties which have been owned and stabilized for all the present and prior 12 months reporting intervals. Same-Property NOI makes an attempt to get rid of variations because of the acquisition or disposition of properties through the explicit interval offered, and due to this fact gives a extra comparable and constant efficiency measure for the comparability of the Company’s properties. FFO, Core FFO, AFFO, Pro Forma EBITDA, and Same-Property NOI might not be corresponding to equally titled measures employed by different firms.

CTO Realty Growth, Inc.
Consolidated Balance Sheets
(In 1000’s, besides share and per share knowledge) 

CTO Realty Growth, Inc.
Consolidated Statements of Operations
(Unaudited)
(In 1000’s, besides share, per share and dividend knowledge)

CTO Realty Growth, Inc.
Non-GAAP Financial Measures
Same-Property NOI Reconciliation
(Unaudited)
(In 1000’s) 

CTO Realty Growth, Inc.
Non-GAAP Financial Measures
(Unaudited)
(In 1000’s, besides per share knowledge) 

CTO Realty Growth, Inc.
Non-GAAP Financial Measures
Reconciliation of Net Debt to Pro Forma EBITDA
(Unaudited)
(In 1000’s)