CTO Realty Growth Reports Third Quarter 2024 Operating Results | The Manila Times

WINTER PARK, Fla., Oct. 24, 2024 (GLOBE NEWSWIRE) -- CTO Realty Growth, Inc. (NYSE: CTO) (the "Company” or "CTO”) today announced its operating results and earnings for the quarter ended September 30, 2024.

Third Quarter Highlights

Net Income per diluted share attributable to common stockholders of $0.17.
Core Funds from Operations ("FFO”) of $0.50 per diluted share attributable to common stockholders, an increase of 6.4% from the comparable prior period.
Adjusted Funds from Operations ("AFFO”) of $0.51 per diluted share attributable to common stockholders, an increase of 6.3% from the comparable prior period.
Raised net proceeds of $125.7 million under the Company's common stock ATM offering program.
Closed a new 5-year $100 million unsecured term loan, resulting in an initial effective interest rate of 4.7%.
Liquidity of $213 million as of September 30, 2024.
Investments totaled $191.3 million, including property acquisitions and structured investments, at a weighted average yield of 9.5%.
Sold one property for $18.0 million at an exit cap rate of 9.2%.
Same-Property NOI totaled $16.8 million, an increase of 6.3% from the comparable prior period.
Signed-not-open pipeline represents $6.5 million, or 7.3%, of annual cash base rent in place as of September 30, 2024.
Increased full year Core FFO guidance to a range of $1.83 to $1.87 per diluted share attributable to common stockholders.
Increased full year AFFO guidance to a range of $1.96 to $2.00 per diluted share attributable to common stockholders.

"We are pleased to report another strong quarter with significant accomplishments across all aspects of our business,” stated John P. Albright, President and Chief Executive Officer of CTO Realty Growth. "We experienced significant growth as our GLA increased over 20% from our $137 million portfolio acquisition of high-quality retail centers in our target growth markets, and we originated a $44 million first mortgage development loan with an initial yield of 11%. Importantly, we primarily funded our investment activity with disciplined use of our ATM. Finally, we closed a $100 million 5-year term loan with proceeds used to pay down our credit facility, and ended the quarter with $213 million of available liquidity and decreased leverage.”

Quarterly Financial Results Highlights

The table below provides a summary of the Company's operating results for the three months ended September 30, 2024:


	Three Months Ended
(in thousands, except per share data)	September 30, 2024		September 30, Advertisement 2023		Variance to Comparable Period in the Prior Year
Net Income Attributable to the Company	$	6,227	$	2,686	$	3,541	131.8	%
Net Income Attributable to Common Stockholders	$	4,349	$	1,491	$	2,858	191.7	%
Net Income Attributable to Common Stockholders per Common Share - Diluted⁽¹⁾	$	0.17	$	0.07	$	0.10	142.9	%

Core FFO Attributable to Common Stockholders⁽²⁾	$	12,633	$	10,462	$	2,171	20.8	%
Core FFO Attributable to Common Stockholders per Common Share - Diluted⁽²⁾	$	0.50	$	0.47	$	0.03	6.4	%

AFFO Attributable to Common Stockholders⁽²⁾	$	13,142	$	10,766	$	2,376	22.1	%
AFFO Attributable to Common Stockholders per Common Share - Diluted⁽²⁾	$	0.51	$	0.48	$	0.03	6.3	%

Dividends Declared and Paid - Preferred Stock	$	0.40	$	0.40	$	-	0.0	%
Dividends Declared and Paid - Common Stock	$	0.38	$	0.38	$	-	0.0	%

⁽¹⁾		The denominator for this measure excludes the impact of 3.7 million and 3.4 million shares for the three months ended September 30, 2024 and 2023, respectively, related to the Company's adoption of ASU 2020-06, effective January 1, 2022, which requires presentation on an if-converted basis for the Company's 2025 Convertible Senior Notes, as the impact would be anti-dilutive.

⁽²⁾		See the "Non-GAAP Financial Measures” section and tables at the end of this press release for a discussion and reconciliation of Net Income Attributable to the Company to non-GAAP financial measures, including FFO Attributable to Common Stockholders, FFO Attributable to Common Stockholders per Common Share - Diluted, Core FFO Attributable to Common Stockholders, Core FFO Attributable to Common Stockholders per Common Share - Diluted, AFFO Attributable to Common Stockholders, and AFFO Attributable to Common Stockholders per Common Share - Diluted. Further, the weighted average shares used to compute per share amounts for Core FFO Attributable to Common Stockholders per Common Share - Diluted and AFFO Attributable to Common Stockholders per Common Share - Diluted do not reflect any dilution related to the ultimate settlement of the 2025 Convertible Senior Notes.

Year-to-Date Financial Results Highlights

The table below provides a summary of the Company's operating results for the nine months ended September 30, 2024:


	Nine Months Ended
(in thousands, except per share data)	September 30, 2024		September 30, 2023			Variance to Comparable Advertisement Period in the Prior Year
Net Income (Loss) Attributable to the Company	$	13,252	$	(1,507	)	$	14,759	979.4	%
Net Income (Loss) Attributable to Common Stockholders	$	8,316	$	(5,092	)	$	13,408	263.3	%
Net Income (Loss) Attributable to Common Stockholders per Common Share - Diluted⁽¹⁾	$	0.35	$	(0.23	)	$	0.58	252.2	%

Core FFO Attributable to Common Stockholders⁽²⁾	$	33,723	$	28,937		$	4,786	16.5	%
Core FFO Attributable to Common Stockholders per Common Share - Diluted⁽²⁾	$	1.43	$	1.28		$	0.15	11.7	%

AFFO Attributable to Common Stockholders⁽²⁾	$	35,840	$	31,410		$	4,430	14.1	%
AFFO Attributable to Common Stockholders per Common Share - Diluted⁽²⁾	$	1.52	$	1.39		$	0.13	9.4	%

Dividends Declared and Paid - Preferred Stock	$	1.20	$	1.20		$	-	0.0	%
Dividends Declared and Paid - Common Stock	$	1.14	$	1.14		$	-	0.0	%

⁽¹⁾		The denominator for this measure excludes the impact of 3.6 million and 3.3 million shares for the nine months ended September 30, 2024 and 2023, respectively, related to the Company's adoption of ASU 2020-06, effective January 1, 2022, which requires presentation on an if-converted basis for the Company's 2025 Convertible Senior Notes, as the impact would be anti-dilutive.

⁽²⁾		See the "Non-GAAP Financial Measures” section and tables at the end of this press release for a discussion and reconciliation of Net Income (Loss) Attributable to the Company to non-GAAP financial measures, including FFO Attributable to Common Stockholders, FFO Attributable to Common Stockholders per Common Share - Diluted, Core FFO Attributable to Common Stockholders, Core FFO Attributable to Common Stockholders per Common Share - Diluted, AFFO Attributable to Common Stockholders, and AFFO Attributable to Common Stockholders per Common Share - Diluted. Further, the weighted average shares used to compute per share amounts for Core FFO Attributable to Common Stockholders per Common Share - Diluted and AFFO Attributable to Common Stockholders per Common Share - Diluted do not reflect any dilution related to the ultimate settlement of the 2025 Convertible Senior Notes.

Investments

During the three months ended September 30, 2024, the Company invested $191.3 million, at a weighted average yield of 9.5% inclusive of:

Three open-air shopping centers for a purchase price of $137.5 million consisting of Carolina Pavilion in Charlotte, North Carolina; Millenia Crossing in Orlando, Florida; and Lake Brandon Village in Tampa, Florida.
Origination of a $43.8 million first mortgage loan with an initial term of two years and an initial fixed interest rate of 11.0%. The loan is secured by over 100 acres entitled for an over 2 million square foot mixed-use development located in Herndon, Virginia near Dulles International Airport and adjacent to a Metrorail Silver Line station.
Completion of a $10.0 million preferred equity investment in a subsidiary of a publicly-traded hospitality, entertainment and real estate company with a dividend rate of 14.0%. The investment is not redeemable prior to July 11, 2029, except upon the occurrence of certain specified events.

During the nine months ended September 30, 2024, the Company invested $273.8 million into five retail properties totaling 1.2 million square feet and one vacant land parcel, originated two first mortgage structured investments for $53.8 million, and invested $10.0 million in a preferred equity investment in a subsidiary of a publicly-traded hospitality, entertainment and real estate company. These investments represent a weighted average going-in cash yield of 9.1%.

Dispositions

During the three months ended September 30, 2024, the Company completed the sale of Jordan Landing, located in West Jordan, Utah for $18.0 million.

During the nine months ended September 30, 2024, the Company sold two retail properties for $38.0 million at a weighted average exit cash cap rate of 8.7%, generating an aggregate gain of $3.8 million.

Portfolio Summary

The Company's income property portfolio consisted of the following as of September 30, 2024:


			Wtd. Avg. Remaining
Asset Type	# of Properties	Square Feet	Lease Term
Single Tenant	6	252	5.5 years
Multi-Tenant	16	4,360	5.0 years
Total / Wtd. Avg.	22	4,612	4.9 years
Square Feet in thousands.


Property Type	# of Properties	Square Feet	% of Cash Base Rent
Retail	17	3,184	66.5	%
Office	1	210	4.1	%
Mixed-Use	4	1,218	29.5	%
Total	22	4,612	100.1	%
Square Feet in thousands.

Leased Occupancy	95.8	%
Occupancy	90.0	%

Same Property Net Operating Income

During the three months ended September 30, 2024, the Company's Same-Property NOI totaled $16.8 million, an increase of 6.3% over the comparable prior year period, as presented in the following table:


	Three Months Ended
	September 30, 2024		September 30, 2023		Variance to Comparable Period in the Prior Year
Single Tenant	$	1,339	$	1,365	$	(26	)	(1.9	)%
Multi-Tenant		15,457		14,439		1,018		7.1	%
Total	$	16,796	$	15,804	$	992		6.3	%

$ in thousands.

During the nine months ended September 30, 2024, the Company's Same-Property NOI totaled $44.6 million, an increase of 5.1% over the comparable prior year period, as presented in the following table:


	Nine Months Ended
	September 30, 2024		September 30, 2023		Variance to Comparable Period in the Prior Year
Single Tenant	$	3,778	$	3,505	$	273	7.8	%
Multi-Tenant		40,834		38,923		1,911	4.9	%
Total	$	44,612	$	42,428	$	2,184	5.1	%

$ in thousands.

Leasing Activity

During the quarter ended September 30, 2024, the Company signed 20 leases totaling 201,806 square feet. On a comparable basis, which excludes vacancy existing at the time of acquisition, CTO signed 16 leases totaling 147,648 square feet at an average cash base rent of $21.86 per square foot compared to a previous average cash base rent of $19.52 per square foot, representing 12.0% comparable growth.

A summary of the Company's overall leasing activity for the quarter ended September 30, 2024, is as follows: