8-K
CTO Realty Growth, Inc. (CTO)
8-K
2022-10-27
For: 2022-10-27
View Original
Added on
April 05, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 27, 2022
CTO Realty Growth, Inc.
(Exact name of registrant as specified in its charter)
| <br><br> | <br><br> | <br><br> |
|---|---|---|
| Maryland<br><br>(State or other jurisdiction of incorporation) | 001-11350<br><br>(Commission File Number) | 59-0483700<br><br>(IRS Employer Identification No.) |
| 369 N. New York Avenue ,<br><br>Suite 201<br><br>Winter Park , Florida<br><br>(Address of principal executive offices) | 32789<br><br>(Zip Code) |
Registrant’s telephone number, including area code: (407) 904-3324
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| .01 | |||
|---|---|---|---|
| Title of each class: | Trading Symbol | **** | Name of each exchange on which registered: |
| Common Stock, 0.01 par value per share | CTO | NYSE<br><br> | |
| 6.375% Series A Cumulative Redeemable Preferred Stock, 0.01 par value per share | <br><br>CTO PrA | | <br><br>NYSE |
All values are in US Dollars.
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
On October 27, 2022, CTO Realty Growth, Inc., a Maryland corporation (the "Company"), issued an earnings press release, an investor presentation, and a supplemental disclosure package relating to the Company’s financial results for the quarter ended September 30, 2022. Copies of the press release, investor presentation, and supplemental disclosure package are attached hereto as Exhibits 99.1, 99.2 and 99.3, respectively, and are incorporated herein by reference.
The information in Item 2.02 of this Current Report, including Exhibits 99.1, 99.2 and 99.3, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, unless it is specifically incorporated by reference therein.
Item 7.01. Regulation FD Disclosure
On October 27, 2022, the Company issued an earnings press release, an investor presentation, and a supplemental disclosure package relating to the Company’s financial results for the quarter ended September 30, 2022. Copies of the earnings press release, investor presentation, and supplemental disclosure package are attached hereto as Exhibits 99.1, 99.2 and 99.3, respectively, and are incorporated herein by reference.
The furnishing of these materials is not intended to constitute a representation that such furnishing is required by Regulation FD or other securities laws, or that the materials include material investor information that is not otherwise publicly available. In addition, the Company does not assume any obligation to update such information in the future.
The information in Item 7.01 of this Current Report, including Exhibits 99.1, 99.2 and 99.3, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act or the Exchange Act, unless it is specifically incorporated by reference therein.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
| |
|---|
| 99.1 Earnings Press Release dated October 27, 2022 |
| 99.2 Investor Presentation dated October 27, 2022 |
| 99.3 Supplemental Disclosure Package |
| 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: October 27, 2022
CTO Realty Growth, Inc.
By: /s/ Matthew M. Partridge
Senior Vice President, Chief Financial Officer and Treasurer
(Principal Financial Officer)
Press
Press Release
Contact:Matthew M. Partridge
Senior Vice President, Chief Financial Officer and Treasurer
(407) 904-3324
mpartridge@ctoreit.com
| FOR<br><br>IMMEDIATE<br><br>RELEASE | <br><br>CTO Realty Growth Reports Third Quarter 2022 Operating Results |
|---|
WINTER PARK, FL – October 27, 2022 – CTO Realty Growth, Inc. (NYSE: CTO) (the “Company” or “CTO”) today announced its operating results and earnings for the quarter ended September 30, 2022.
Select Highlights
◾Reported Net Income per diluted share attributable to common stockholders of $0.19 for the quarter ended September 30, 2022.
◾Reported Core FFO per diluted share attributable to common stockholders of $0.47 for the quarter ended September 30, 2022, an increase of 38.2% from the comparable prior year period.
◾Reported AFFO per diluted share attributable to common stockholders of $0.49 for the quarter ended September 30, 2022, an increase of 36.1% from the comparable prior year period.
◾Acquired Madison Yards, a newly built, grocery-anchored retail property located in Atlanta, Georgia for a purchase price of $80.2 million. The purchase price represents a going-in cap rate below the range of the Company’s prior guidance for initial cash yields.
◾Sold two single tenant retail properties, the Company’s sole remaining multi-tenant office property and one multi-tenant retail property for total disposition volume of $57.0 million at a weighted average exit cap rate of 6.3%, generating total gains of $5.0 million.
◾Reported a 12.0% increase in Same-Property NOI during the quarter ended September 30, 2022, as compared to the comparable prior year period.
◾Expanded revolving credit facility from $210 million to $300 million, extended the revolving credit facility’s maturity date to January 2027, and entered into a new fixed-rate $100 million unsecured term loan with a maturity date of January 2028.
◾Paid a $0.38 per share common stock cash dividend for the third quarter of 2022, which represented a 14.0% increase from the comparable prior year period quarterly common stock cash dividend and an annualized yield of 7.6% based on the closing price of the Company’s common stock on October 26, 2022.
◾On October 14, 2022, the Company acquired West Broad Village, a mixed-use, grocery-anchored lifestyle property in Richmond, Virginia for a purchase price of $93.9 million. The purchase price represents a going-in cap rate above the range of the Company’s prior guidance for initial cash yields.
CEO Comments
Page 1
“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,” said 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 below provide a summary of the Company’s operating results for the three months ended September 30, 2022:
| (in thousands, except per share data) | For the Three<br><br>Months Ended<br><br>September 30, 2022 | | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income Attributable to the Company^^ | $ | 4,817 | | 23,947 | | (19,130) | (79.9%) | |||
| Net Income Attributable to Common Stockholders ^^ | $ | 3,622 | | 22,818 | | (19,196) | (84.1%) | |||
| Net Income per Diluted Share Attributable to Common Stockholders^(1)^ | $ | 0.19 | | 1.29 | | (1.10) | (85.3%) | |||
| | | | | | | | | | | |
| Core FFO Attributable to Common Stockholders ^(2)^ | $ | 8,684 | | 5,985 | | 2,699 | 45.1% | |||
| Core FFO per Common Share – Diluted^(2)^ | $ | 0.47 | | 0.34 | | 0.13 | 38.2% | |||
| | | | | | | | | | | |
| AFFO Attributable to Common Stockholders ^(2)^ | $ | 8,957 | | 6,422 | | 2,535 | 39.5% | |||
| AFFO per Common Share – Diluted^(2)^ | $ | 0.49 | | 0.36 | | 0.13 | 36.1% | |||
| | | | | | | | | | | |
| Dividends Declared and Paid, per Preferred Share | $ | 0.40 | 0.38 | | 0.02 | 5.9% | ||||
| Dividends Declared and Paid, per Common Share | $ | 0.38 | | 0.33 | | 0.05 | 14.0% |
All values are in US Dollars.
| ^(1)^ | The denominator for this measure in 2022 includes the impact of 3.1 million shares related to the Company’s adoption of ASU 2020-06, effective January 1, 2022, which requires presentation on an if-converted basis for its 2025 Convertible Senior Notes, as the impact for the quarter ended September 30, 2022 was 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 per Common Share - Diluted, Core FFO Attributable to Common Stockholders, Core FFO per Common Share – Diluted, AFFO Attributable to Common Stockholders and AFFO per Common Share - Diluted. |
| --- | --- |
Year-to-Date Financial Results Highlights
The tables below provide a summary of the Company’s operating results for the nine months ended September 30, 2022:
| (in thousands, except per share data) | For the Nine<br><br>Months Ended<br><br>September 30, 2022 | | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income Attributable to the Company^^ | $ | 6,237 | | 28,008 | | (21,771) | (77.7%) | |||
| Net Income Attributable to Common Stockholders ^^ | $ | 2,651 | | 26,879 | | (24,228) | (90.1%) |
All values are in US Dollars.
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| Net Income per Diluted Share Attributable to Common Stockholders^(1)^ | $ | 0.15 | | $ | 1.52 | | $ | (1.37) | (90.1%) |
|---|---|---|---|---|---|---|---|---|---|
| | | | | | | | | | |
| Core FFO Attributable to Common Stockholders ^(2)^ | $ | 25,396 | | $ | 16,053 | | $ | 9,343 | 58.2% |
| Core FFO per Common Share – Diluted^(2)^ | $ | 1.41 | | $ | 0.91 | | $ | 0.50 | 54.9% |
| | | | | | | | | | |
| AFFO Attributable to Common Stockholders ^(2)^ | $ | 26,564 | | $ | 18,403 | | $ | 8,161 | 44.3% |
| AFFO per Common Share – Diluted^(2)^ | $ | 1.47 | | $ | 1.04 | | $ | 0.43 | 41.3% |
| | | | | | | | | | |
| Dividends Declared and Paid, per Preferred Share | $ | 1.20 | $ | 0.38 | | $ | 0.82 | 217.7% | |
| Dividends Declared and Paid, per Common Share | $ | 1.11 | | $ | 1.00 | | $ | 0.11 | 11.3% |
| ^(1)^ | The denominator for this measure in 2022 excludes the impact of 3.1 million shares related to the Company’s adoption of ASU 2020-06, effective January 1, 2022, which requires presentation on an if-converted basis for its 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 per Common Share - Diluted, Core FFO Attributable to Common Stockholders, Core FFO per Common Share – Diluted, AFFO Attributable to Common Stockholders and AFFO per Common Share - Diluted. | ||||||||
| --- | --- |
Investments
During the three months ended September 30, 2022, the Company acquired Madison Yards, a 162,500 square foot grocery-anchored property located in the Inman Park/Reynoldstown submarket along the Memorial Drive corridor of Atlanta, Georgia for a purchase price of $80.2 million. The property is 99% occupied, anchored by Publix and AMC Theatres, includes a well-crafted mix of retailers and restaurants, including AT&T, First Watch, and Orangetheory Fitness. The purchase price represents a going-in cap rate below the range of the Company’s prior guidance for initial cash yields.
During the nine months ended September 30, 2022, the Company acquired two multi-tenant retail properties for total income property acquisition volume of $119.3 million and originated three structured investments to provide $57.7 million of funding towards three retail and mixed-use properties. These acquisitions and structured investments represent a blended weighted average going-in yield of 7.2%.
Subsequent to quarter-end, the Company acquired West Broad Village, a 392,000 square foot grocery-anchored lifestyle property located in the Short Pump submarket of Richmond, Virginia for a purchase price of $93.9 million. The property, anchored by Whole Foods and REI, is 83% occupied and comprised of approximately 315,600 square feet of retail and 76,400 square feet of complementary office and includes an attractive combination of national and local tenants spanning the grocery, food & beverage, entertainment, education, home décor, childcare and medical sectors. The purchase price represents a going-in cap rate above the range of the Company’s prior guidance for initial cash yields.
Dispositions
During the three months ended September 30, 2022, the Company sold two single tenant retail properties, its sole remaining multi-tenant office property, and one multi-tenant retail property in Hialeah, Florida that was classified as a commercial loan investment due to the tenant’s repurchase option. Total disposition volume was $57.0 million at a weighted average exit cap rate of 6.3%, generating total gains of $5.0 million.
During the nine months ended September 30, 2022, the Company sold six properties, two of which were classified as a commercial loan investment due to the respective tenants’ repurchase options, for $81.1 million at a weighted average exit cap rate of 6.2%.
Page 3
Income Property Portfolio
The Company’s income property portfolio consisted of the following as of September 30, 2022:
| <br><br>Asset Type | # of Properties | Square Feet | Weighted Average Remaining Lease Term |
|---|---|---|---|
| Single Tenant | 5 | 407 | 5.9 years |
| Multi-Tenant | 13 | 2,337 | 6.6 years |
| Total / Weighted Average Lease Term | 18 | 2,744 | 6.5 years |
| Property Type | # of Properties | **** | Square Feet | % of Cash Base Rent | ||
|---|---|---|---|---|---|---|
| Retail | 12 | 1,944 | 67.3% | |||
| Office | | 3 | | 395 | | 13.8% |
| Mixed-Use | | 3 | | 405 | | 18.9% |
| Total / Weighted Average Lease Term | 18 | 2,744 | 100.0% |
| Leased Occupancy | 94.4% | | |
|---|---|---|---|
| Economic Occupancy | 91.8% | | |
| Physical Occupancy | 90.4% | | |
Square feet in thousands.
Operational Highlights ****
The Company’s Same-Property NOI totaled $8.5 million during the third quarter of 2022, an increase of 12.0% over the comparable prior year period, as presented in the following table.
| (in thousands) | For the Three<br><br>Months Ended<br><br>September 30, 2022 | For the Three<br><br>Months Ended<br><br>September 30, 2021 | | Variance to Comparable Period in the Prior Year | |||||
|---|---|---|---|---|---|---|---|---|---|
| Single Tenant | $ | 1,920 | | $ | 1,746 | | $ | 174 | 10.0% |
| Multi-Tenant | | 6,545 | | | 5,815 | | | 730 | 12.6% |
| Total | $ | 8,465 | | $ | 7,561 | | $ | 904 | 12.0% |
During the third quarter of 2022, the Company signed leases totaling 75,231 square feet. A summary of the Company’s leasing activity is as follows:
| <br><br>Retail | Square Feet | Weighted Average Lease Term | Cash Rent Per Square Foot | | Tenant Improvements | | Leasing Commissions | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| New Leases | | 43.4 | | 8.7 years | | $36.14 | | $ | 3,025 | | $ | 1,033 |
| Renewals & Extensions | 31.8 | | 5.8 years | | $29.62 | | $ | — | | $ | 77 | |
| Total / Weighted Average | 75.2 | | 7.6 years | | $33.39 | | $ | 3,025 | | $ | 1,110 |
In thousands except for per square foot and lease term data.
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Subsurface Interests and Mitigation Credits
During the three months ended September 30, 2022, the Company sold approximately 1,500 acres of subsurface oil, gas, and mineral rights for $0.7 million, resulting in aggregate gains of $0.7 million.
During the nine months ended September 30, 2022, the Company sold approximately 14,582 acres of subsurface oil, gas and mineral rights for $1.6 million, resulting in a gain on the sale of $1.5 million. As of September 30, 2022, the Company owns full or fractional subsurface oil, gas, and mineral interests underlying approximately 355,000 “surface” acres of land owned by others in 19 counties in Florida.
During the three months ended September 30, 2022, the Company sold approximately 24.7 state mitigation credits for $2.3 million, resulting in aggregate gains of $0.7 million.
During the nine months ended September 30, 2022, the Company sold approximately 26.6 state mitigation credits for $2.6 million, resulting in a gain on the sale of $0.8 million.
Capital Markets and Balance Sheet
During the quarter ended September 30, 2022, the Company completed the following notable capital markets activity:
| ◾ | On September 20, 2022, the Company amended its senior unsecured Credit Facility. The Credit Facility was increased to $565 million and is comprised of a $300 million unsecured revolving credit facility, a new $100 million unsecured 2028 term loan, and the Company’s existing $165 million of unsecured term loans (altogether, the “Credit Facility”). The Credit Facility includes structural changes to certain financial covenants, a sustainability-linked pricing component that reduces the applicable interest rate margin if the Company meets certain sustainability performance targets, and an accordion option that allows the Company to request additional commitments up to a total of $750 million. |
|---|---|
| ◾ | Issued 565,687 common shares under its ATM offering program at a weighted average gross price of $22.02 per share, for total net proceeds of $12.3 million. |
| --- | --- |
| ◾ | Repurchased 85,694 shares for approximately $1.6 million at a weighted average gross price of $19.17 per share. |
| --- | --- |
| ◾ | Completed a three-for-one stock split and began trading at the post-split price on July 1, 2022. The stock split was effected in the form of a stock dividend of two additional shares of common stock for each outstanding share of common stock held as of the record date for the stock dividend. |
| --- | --- |
The following table provides a summary of the Company’s long-term debt, at face value, as of September 30, 2022:
| Component of Long-Term Debt | Principal | Interest Rate | Maturity Date | |
|---|---|---|---|---|
| Revolving Credit Facility | $38.5 million | SOFR + 10 bps + [1.25% – 2.20%] | January 2027 | |
| 2025 Convertible Senior Notes | $51.0 million | 3.875% | April 2025 | |
| 2026 Term Loan ^(1)^ | $65.0 million | SOFR + 10 bps + [1.25% – 2.20%] | March 2026 | |
| 2027 Term Loan ^(2)^ | $100.0 million | SOFR + 10 bps + [1.25% – 2.20%] | January 2027 | |
| 2028 Term Loan ^(3)^ | | $100.0 million | SOFR + 10 bps + [1.20% – 2.15%] | January 2028 |
| Mortgage Note ^(4)^ | $17.8 million | 4.06% | August 2026 | |
| Total Debt / Weighted Average Interest Rate | $372.3 million | 3.44% | ||
| ^(1)^ | The Company utilized interest rate swaps on the $65.0 million 2026 Term Loan balance to fix SOFR and achieve a weighted average fixed swap rate of 0.26% plus the 10 bps SOFR adjustment plus the applicable spread. | |||
| --- | --- | |||
| ^(2)^ | The Company utilized interest rate swaps on the $100.0 million 2027 Term Loan balance to fix SOFR and achieve a fixed swap rate of 0.64% plus the 10 bps SOFR adjustment plus the applicable spread. | |||
| --- | --- |
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| ^(3)^ | The Company entered into interest rate swaps on the $100.0 million 2028 Term Loan balance to fix SOFR and achieve a weighted average fixed swap rate of 3.78% plus the 10 bps SOFR adjustment plus the applicable spread. |
|---|---|
| ^(4)^ | Mortgage note assumed in connection with the acquisition of Price Plaza Shopping Center located in Katy, Texas. |
| --- | --- |
As of September 30, 2022, the Company’s net debt to Pro Forma EBITDA was 6.4 times, and as defined in the Company’s credit agreement, the Company’s fixed charge coverage ratio was 3.4 times. As of September 30, 2022, the Company’s net debt to total enterprise value was 43.2%. The Company calculates total enterprise value as the sum of net debt, par value of its 6.375% Series A preferred equity, and the market value of the Company's outstanding common shares.
Dividends
On August 22, 2022, the Company announced a cash dividend on its common stock and Series A Preferred stock 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 record as of the close of business on September 12, 2022. The third quarter 2022 common stock cash dividend represents a 14.0% increase over the comparable prior year period 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 increased its outlook for 2022 to take into account the Company’s year-to-date performance and revised expectations regarding the Company’s investment activities, forecasted capital markets transactions, leasing activity, and other significant assumptions.
The Company’s increased outlook for 2022 is as follows:
| | 2022 Revised Outlook Range | | Change from Prior Outlook | ||||
|---|---|---|---|---|---|---|---|
| | Low | | High | | Low | | High |
| Acquisition of Income Producing Assets^^ | $271 million | to | $271 million | | $21 million | to | ($4) million |
| Target Investment Initial Cash Yield | 7.25% | to | 7.25% | | 20 bps | to | 0 bps |
| Disposition of Assets | $81 million | to | $83 million | | $31 million | to | $3 million |
| Target Disposition Cash Yield | 6.15% | to | 6.25% | | (10) bps | to | (50) bps |
| | | | | | | | |
| Core FFO Per Diluted Share | $1.71 | to | $1.74 | | $0.13 | to | $0.10 |
| AFFO Per Diluted Share | $1.79 | to | $1.82 | | $0.09 | to | $0.06 |
| | | | | | | | |
| Weighted Average Diluted<br><br>Shares Outstanding | 18.2 million | to | 18.2 million | | (0.1) million | to | (0.3) million |
3rd Quarter Earnings Conference Call & Webcast
The Company will host a conference call to present its operating results for the quarter ended September 30, 2022 on Friday, October 28, 2022, at 9:00 AM ET.
A live webcast of the call will be available on the Investor Relations page of the Company’s website at www.ctoreit.com or at the link provided in the event details below. To access the call by phone, please go to the link provided in the event details below and you will be provided with dial-in details.
Webcast: https://edge.media-server.com/mmc/p/haf26ajs
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Dial-In: https://register.vevent.com/register/BI7d526face25a498fb3ea12784d73ae34
We encourage participants to dial into the conference call at least fifteen minutes ahead of the scheduled start time. A replay of the earnings call will be archived and available online through the Investor Relations section of the Company’s website at www.ctoreit.com.
About CTO Realty Growth, Inc.
CTO Realty Growth, Inc. is a publicly traded real estate investment trust that owns and operates a portfolio of high-quality, retail-based properties located primarily in higher growth markets in the United States. CTO also externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE), a publicly traded net lease REIT.
We encourage you to review our most recent investor presentation and supplemental financial information, which is available on our website at www.ctoreit.com.
Safe Harbor
Certain statements contained in this press release (other than statements of historical fact) are forward-looking statements within the meaning 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 typically be identified by words such as “believe,” “estimate,” “expect,” “intend,” “anticipate,” “will,” “could,” “may,” “should,” “plan,” “potential,” “predict,” “forecast,” “project,” and similar expressions, as well as variations or negatives of these words.
Although forward-looking statements are made based upon management’s present expectations and reasonable beliefs concerning future developments and their potential effect upon the Company, a number of factors could cause the Company’s actual results to differ materially from those set forth in the forward-looking statements. Such factors may include, but are not limited to: the Company’s ability to remain qualified as a REIT; the Company’s exposure to U.S. federal and state income tax law changes, including changes to the REIT requirements; general adverse economic and real estate conditions; macroeconomic and geopolitical factors, including but not limited to inflationary pressures, interest rate volatility, global supply chain disruptions, and ongoing geopolitical war; the ultimate geographic spread, severity and duration of pandemics such as the COVID-19 Pandemic and its variants, actions that may be taken by governmental authorities to contain or address the impact of such pandemics, and the potential negative impacts of such pandemics on the global economy and the Company’s financial condition and results of operations; the inability of major tenants to continue paying their rent or obligations due to bankruptcy, insolvency or a general downturn in their business; the loss or failure, or decline in the business or assets of PINE; the completion of 1031 exchange transactions; the availability of investment properties that meet the Company’s investment goals and criteria; the uncertainties associated with obtaining required governmental permits and satisfying other closing conditions for planned acquisitions and sales; and the uncertainties and risk factors discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and other risks and uncertainties discussed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission.
There can be no assurance that future developments will be in accordance with management’s expectations or that the effect of future developments on the Company will be those anticipated by management. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to update the information contained in this press release to reflect subsequently occurring events or circumstances.
Non-GAAP Financial Measures
Our reported results are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We also disclose Funds From Operations (“FFO”), Core Funds From Operations (“Core FFO”),
Page 7
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”), each of which are non-GAAP financial measures. We believe these non-GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs.
FFO, Core FFO, AFFO, Pro Forma EBITDA, and Same-Property NOI do not represent cash generated from operating activities and are not necessarily indicative of cash available to fund cash requirements; accordingly, they should not be considered alternatives to net income as a performance measure or cash flows from operating activities as reported on our statement of cash flows as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial 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 net income or loss adjusted to exclude extraordinary items (as defined by GAAP), net gain or loss from sales of depreciable real estate assets, impairment write-downs associated with depreciable real estate assets and real estate related depreciation and amortization, including the pro rata share of such adjustments of unconsolidated subsidiaries. The Company also excludes the gains or losses from sales of assets incidental to the primary business of the REIT which specifically include the sales of mitigation credits, impact fee credits, subsurface sales, and land sales, in addition to the mark-to-market of the Company’s investment securities and interest related to the 2025 Convertible Senior Notes, if the effect is dilutive. To derive Core FFO, we modify the NAREIT computation of FFO to include other adjustments to GAAP net income related to gains and losses recognized on the extinguishment of debt, amortization of above- and below-market lease related intangibles, and other unforecastable market- or transaction-driven non-cash items. To derive AFFO, we further modify the NAREIT computation of FFO and Core FFO to include other adjustments to GAAP net income related to non-cash revenues and expenses such as straight-line rental revenue, non-cash compensation, and other non-cash amortization, as well as adding back the interest related to the 2025 Convertible Senior Notes, if the effect is dilutive. Such items may cause short-term fluctuations in net income but have no impact on operating cash flows or long-term operating performance. We use AFFO as one measure of our performance when we formulate corporate goals.
To derive Pro Forma EBITDA, GAAP net income or loss attributable to the Company is adjusted to exclude extraordinary items (as defined by GAAP), net gain or loss from sales of depreciable real estate assets, impairment write-downs associated with depreciable real estate assets and real estate related depreciation and amortization, including the pro rata share of such adjustments of unconsolidated subsidiaries, non-cash revenues and expenses such as straight-line rental revenue, amortization of deferred financing costs, above- and below-market lease related intangibles, non-cash compensation, and other non-cash income or expense. Cash interest expense is also excluded from Pro Forma EBITDA, and GAAP net income or loss is adjusted for the annualized impact of acquisitions, dispositions and other similar activities.
To derive Same-Property NOI, GAAP net income or loss attributable to the Company is adjusted to exclude extraordinary items (as defined by GAAP), gain or loss on disposition of assets, gain or loss on extinguishment of debt, impairment charges, and depreciation and amortization, including the pro rata share of such adjustments of unconsolidated subsidiaries, if any, non-cash revenues and expenses such as above- and below-market lease related intangibles, straight-line rental revenue, and other non-cash income or expense. Interest expense, general and administrative expenses, investment and other income or loss, income tax benefit or expense, real estate operations revenues and direct cost of revenues, management fee income, and interest income from commercial loans and investments are also excluded from Same-Property NOI. GAAP net income or loss is further adjusted to remove the impact of properties that were not owned for the full current and prior year reporting periods presented. Cash rental income received under the leases pertaining to the Company’s assets that are presented as commercial loans and investments in accordance with GAAP is also used in lieu of the interest income equivalent.
FFO is used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers primarily because it excludes the effect of real estate depreciation and amortization and net gains or losses on sales, which are based on historical costs and implicitly assume that the value
Page 8
of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. We believe that Core FFO and AFFO are additional useful supplemental measures for investors to consider because they will help them to better assess our operating performance without the distortions created by other non-cash revenues or expenses. We also believe that Pro Forma EBITDA is an additional useful supplemental measure for investors to consider as it allows for a better assessment of our operating performance without the distortions created by other non-cash revenues, expenses or certain effects of the Company’s capital structure on our operating performance. We use Same-Property NOI to compare the operating performance of our assets between periods. It is an accepted and important measurement used by management, investors and analysts because it includes all property-level revenues from the Company’s properties, less operating and maintenance expenses, real estate taxes and other property-specific expenses (“Net Operating Income” or “NOI”) of properties that have been owned and stabilized for the entire current and prior year reporting periods. Same-Property NOI attempts to eliminate differences due to the acquisition or disposition of properties during the particular period presented, and therefore provides a more comparable and consistent performance measure for the comparison of the Company's properties. FFO, Core FFO, AFFO, Pro Forma EBITDA, and Same-Property NOI may not be comparable to similarly titled measures employed by other companies.
Page 9
CTO Realty Growth, Inc.
Consolidated Balance Sheets
(In thousands, except share and per share data)
| | | As of | ||||
|---|---|---|---|---|---|---|
| | **** | (Unaudited) September 30, 2022 | **** | December 31, 2021 | ||
| ASSETS | | | | | | |
| Real Estate: | | | | | | |
| Land, at Cost | | $ | 209,298 | | $ | 189,589 |
| Building and Improvements, at Cost | | | 377,758 | | | 325,418 |
| Other Furnishings and Equipment, at Cost | | | 746 | | | 707 |
| Construction in Process, at Cost | | | 10,717 | | | 3,150 |
| Total Real Estate, at Cost | | | 598,519 | | | 518,864 |
| Less, Accumulated Depreciation | | | (31,278) | | | (24,169) |
| Real Estate—Net | | | 567,241 | | | 494,695 |
| Land and Development Costs | | | 685 | | | 692 |
| Intangible Lease Assets—Net | | | 87,671 | | | 79,492 |
| Assets Held for Sale | | | — | | | 6,720 |
| Investment in Alpine Income Property Trust, Inc. | | | 35,260 | | | 41,037 |
| Mitigation Credits | | | 2,846 | | | 3,702 |
| Mitigation Credit Rights | | | 19,999 | | | 21,018 |
| Commercial Loans and Investments | | | 46,201 | | | 39,095 |
| Cash and Cash Equivalents | | | 9,532 | | | 8,615 |
| Restricted Cash | | | 37,292 | | | 22,734 |
| Refundable Income Taxes | | | 448 | | | 442 |
| Deferred Income Taxes—Net | | | 61 | | | — |
| Other Assets | | | 38,536 | | | 14,897 |
| Total Assets | | $ | 845,772 | | $ | 733,139 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | |
| Liabilities: | | | | | | |
| Accounts Payable | | $ | 1,136 | | $ | 676 |
| Accrued and Other Liabilities | | | 18,149 | | | 13,121 |
| Deferred Revenue | | | 5,840 | | | 4,505 |
| Intangible Lease Liabilities—Net | | | 5,995 | | | 5,601 |
| Deferred Income Taxes—Net | | | — | | | 483 |
| Long-Term Debt | | | 370,248 | | | 278,273 |
| Total Liabilities | | | 401,368 | | | 302,659 |
| Commitments and Contingencies | | | | | | |
| Stockholders’ Equity: | | | | | | |
| Preferred Stock – 100,000,000 shares authorized; $0.01 par value, 6.375% Series A Cumulative Redeemable Preferred Stock, $25.00 Per Share Liquidation Preference, 3,000,000 shares issued and outstanding at September 30, 2022 and December 31, 2021 | | | 30 | | | 30 |
| Common Stock – 500,000,000 shares authorized; $0.01 par value, 18,796,612 shares issued and outstanding at September 30, 2022; and 17,748,678 shares issued and outstanding at December 31, 2021 | | | 188 | | | 60 |
| Additional Paid-In Capital | | | 97,419 | | | 85,414 |
| Retained Earnings | | | 329,317 | | | 343,459 |
| Accumulated Other Comprehensive Income | | | 17,450 | | | 1,517 |
| Total Stockholders’ Equity | | | 444,404 | | | 430,480 |
| Total Liabilities and Stockholders’ Equity | | $ | 845,772 | | $ | 733,139 |
Page 10
CTO Realty Growth, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except share, per share and dividend data)
| | | Three Months Ended | | Nine Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | September 30, | | September 30, | | September 30, | | September 30, | ||||
| | **** | 2022 | **** | 2021 | **** | 2022 | **** | 2021 | ||||
| Revenues | | | | | | | | | | | | |
| Income Properties | | $ | 17,694 | | $ | 13,734 | | $ | 49,229 | | $ | 36,757 |
| Management Fee Income | | | 951 | | | 940 | | | 2,835 | | | 2,361 |
| Interest Income From Commercial Loans and Investments | | | 1,323 | | | 726 | | | 3,331 | | | 2,136 |
| Real Estate Operations | | | 3,149 | | | 1,177 | | | 4,395 | | | 4,318 |
| Total Revenues | | | 23,117 | | | 16,577 | | | 59,790 | | | 45,572 |
| Direct Cost of Revenues | | | | | | | | | | | | |
| Income Properties | | | (5,115) | | | (3,984) | | | (13,943) | | | (9,688) |
| Real Estate Operations | | | (1,661) | | | (252) | | | (1,940) | | | (867) |
| Total Direct Cost of Revenues | | | (6,776) | | | (4,236) | | | (15,883) | | | (10,555) |
| General and Administrative Expenses | | | (3,253) | | | (2,680) | | | (8,972) | | | (8,477) |
| Impairment Charges | | | — | | | — | | | — | | | (16,527) |
| Depreciation and Amortization | | | (7,305) | | | (5,567) | | | (20,401) | | | (15,428) |
| Total Operating Expenses | | | (17,334) | | | (12,483) | | | (45,256) | | | (50,987) |
| Gain on Disposition of Assets | | | 4,973 | | | 22,666 | | | 4,728 | | | 28,106 |
| Loss on Extinguishment of Debt | | | — | | | — | | | — | | | (641) |
| Other Gains and Income | | | 4,973 | | | 22,666 | | | 4,728 | | | 27,465 |
| Total Operating Income | | | 10,756 | | | 26,760 | | | 19,262 | | | 22,050 |
| Investment and Other Income (Loss) | | | (3,065) | | | (797) | | | (6,270) | | | 8,438 |
| Interest Expense | | | (3,037) | | | (1,986) | | | (7,216) | | | (6,851) |
| Income Before Income Tax Benefit (Expense) | | | 4,654 | | | 23,977 | | | 5,776 | | | 23,637 |
| Income Tax Benefit (Expense) | | | 163 | | | (30) | | | 461 | | | 4,371 |
| Net Income Attributable to the Company | | | 4,817 | | | 23,947 | | | 6,237 | | | 28,008 |
| Distributions to Preferred Stockholders | | | (1,195) | | | (1,129) | | | (3,586) | | | (1,129) |
| Net Income Attributable to Common Stockholders | | $ | 3,622 | | $ | 22,818 | | $ | 2,651 | | $ | 26,879 |
| | | | | | | | | | | | | |
| Per Share Attributable to Common Stockholders: | | | | | | | | | | | | |
| Basic Net Income per Share | | $ | 0.20 | | $ | 1.29 | | $ | 0.15 | | $ | 1.52 |
| Diluted Net Income per Share | | $ | 0.19 | | $ | 1.29 | | $ | 0.15 | | $ | 1.52 |
| | | | | | | | | | | | | |
| Weighted Average Number of Common Shares | | | | | | | | | | | | |
| Basic | | | 18,386,435 | | | 17,703,284 | | | 18,044,299 | | | 17,678,701 |
| Diluted | | | 21,505,460 | | | 17,703,284 | | | 18,044,299 | | | 17,678,701 |
| | | | | | | | | | | | | |
| Dividends Declared and Paid – Preferred Stock | | $ | 0.40 | | $ | 0.38 | | $ | 1.20 | | $ | 0.38 |
| Dividends Declared and Paid – Common Stock | | $ | 0.38 | | $ | 0.33 | | $ | 1.11 | | $ | 1.00 |
Page 11
CTO Realty Growth, Inc.
Non-GAAP Financial Measures
Same-Property NOI Reconciliation
(Unaudited)
(In thousands)
| **** | Three Months Ended | |||||
|---|---|---|---|---|---|---|
| **** | September 30,<br><br>2022 | **** | September 30,<br><br>2021 | |||
| Net Income Attributable to the Company | $ | 4,817 | $ | 23,947 | ||
| Gain on Disposition of Assets | | (4,973) | | | (22,666) | |
| Depreciation and Amortization per Income Statement | | 7,305 | | | 5,567 | |
| Amortization of Intangibles to Lease Income | | (507) | | | 86 | |
| Straight-Line Rent Adjustment | | 600 | | | 669 | |
| COVID-19 Rent Deferrals | | (26) | | | (84) | |
| Accretion of Tenant Contribution | | 38 | | | 38 | |
| Interest Expense | | 3,037 | | | 1,986 | |
| General and Administrative Expenses | | 3,253 | | | 2,680 | |
| Investment and Other Loss (Income) | | 3,065 | | | 797 | |
| Income Tax Benefit (Expense) | | (163) | | | 30 | |
| Real Estate Operations Revenues | | (3,149) | | | (1,177) | |
| Real Estate Operations Direct Cost of Revenues | | 1,661 | | | 252 | |
| Management Fee Income | | (951) | | | (940) | |
| Interest Income from Commercial Loans and Investments | | (1,323) | | | (726) | |
| Less: Impact of Properties Not Owned for the Full Reporting Period | | (4,219) | | | (2,898) | |
| Same-Property NOI | $ | 8,465 | $ | 7,561 |
Page 12
CTO Realty Growth, Inc.
Non-GAAP Financial Measures
(Unaudited)
(In thousands, except per share data)
| | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Three Months Ended | | Nine Months Ended | ||||||||
| | | September 30, 2022 | | September 30, 2021 | | September 30, 2022 | | September 30, 2021 | ||||
| Net Income Attributable to the Company | | $ | 4,817 | | $ | 23,947 | | $ | 6,237 | | $ | 28,008 |
| Add Back: Effect of Dilutive Interest Related to 2025 Notes ^(1)^ | | | 539 | | | — | | | — | | | — |
| Net Income Attributable to the Company, If-Converted | | $ | 5,356 | | $ | 23,947 | | | 6,237 | | | 28,008 |
| Depreciation and Amortization of Real Estate | | | 7,283 | | | 5,567 | | | 20,359 | | | 15,428 |
| Gains on Disposition of Assets | | | (4,973) | | | (22,666) | | | (4,728) | | | (28,106) |
| Gains on Disposition of Other Assets | | | (1,509) | | | (974) | | | (2,473) | | | (3,549) |
| Impairment Charges, Net | | | — | | | — | | | — | | | 12,474 |
| Unrealized Loss (Gain) on Investment Securities | | | 3,754 | | | 1,326 | | | 8,102 | | | (6,894) |
| Funds from Operations | | $ | 9,911 | | $ | 7,200 | | $ | 27,497 | | $ | 17,361 |
| Distributions to Preferred Stockholders | | | (1,195) | | | (1,129) | | | (3,586) | | | (1,129) |
| Funds From Operations Attributable to Common Stockholders | | $ | 8,716 | | $ | 6,071 | | $ | 23,911 | | $ | 16,232 |
| Loss on Extinguishment of Debt | | | — | | | — | | | — | | | 641 |
| Amortization of Intangibles to Lease Income | | | 507 | | | (86) | | | 1,485 | | | (820) |
| Less: Effect of Dilutive Interest Related to 2025 Notes^(1)^ | | | (539) | | | — | | | — | | | — |
| Core Funds From Operations Attributable to Common Stockholders | | $ | 8,684 | | $ | 5,985 | | $ | 25,396 | | $ | 16,053 |
| Adjustments: | | | | | | | | | | | | |
| Straight-Line Rent Adjustment | | | (600) | | | (669) | | | (1,645) | | | (1,844) |
| COVID-19 Rent Repayments | | | 26 | | | 84 | | | 79 | | | 738 |
| Other Depreciation and Amortization | | | (29) | | | (154) | | | (199) | | | (528) |
| Amortization of Loan Costs, Discount on Convertible Debt, and Capitalized Interest | | | 64 | | | 442 | | | 510 | | | 1,395 |
| Non-Cash Compensation | | | 812 | | | 734 | | | 2,423 | | | 2,434 |
| Non-Recurring G&A | | | — | | | — | | | — | | | 155 |
| Adjusted Funds From Operations Attributable to Common Stockholders | | $ | 8,957 | | $ | 6,422 | | $ | 26,564 | | $ | 18,403 |
| | | | | | | | | | | | | |
| FFO Attributable to Common Stockholders per Common Share – Diluted | | $ | 0.41 | | $ | 0.34 | | $ | 1.33 | | $ | 0.92 |
| Core FFO Attributable to Common Stockholders per Common Share – Diluted | | $ | 0.47 | | $ | 0.34 | | $ | 1.41 | | $ | 0.91 |
| AFFO Attributable to Common Stockholders per Common Share – Diluted | | $ | 0.49 | | $ | 0.36 | | $ | 1.47 | | $ | 1.04 |
| ^(1)^ | A total of 3.1 million shares representing the dilutive impact of the 2025 Notes, upon adoption of ASU 2020-06 effective January 1, 2022, were included in the computation of diluted net income per share attributable to common stockholders for the three months ended September 30, 2022. |
|---|
A total of 3.1 million shares representing the dilutive impact of the 2025 Notes, were not included in the computation of diluted net income per share attributable to common stockholders for the nine months ended September 30, 2022 because they were antidilutive to the net income of under $2.6 million.
Page 13
CTO Realty Growth, Inc.
Non-GAAP Financial Measures
Reconciliation of Net Debt to Pro Forma EBITDA
(Unaudited)
(In thousands)
| **** | Three Months Ended September 30, 2022 | |
|---|---|---|
| Net Income Attributable to the Company | $ | 4,817 |
| Depreciation and Amortization of Real Estate | 7,283 | |
| Gain on Disposition of Assets | | (4,973) |
| Gain on Disposition of Other Assets | (1,509) | |
| Unrealized Loss on Investment Securities | 3,754 | |
| Distributions to Preferred Stockholders | | (1,195) |
| Straight-Line Rent Adjustment | (600) | |
| Amortization of Intangibles to Lease Income | 507 | |
| Other Non-Cash Amortization | (29) | |
| Amortization of Loan Costs and Discount on Convertible Debt | 64 | |
| Non-Cash Compensation | 812 | |
| Interest Expense, Net of Amortization of Loan Costs and Discount on Convertible Debt | 2,819 | |
| EBITDA | $ | 11,750 |
| | | |
| Annualized EBITDA | $ | 47,000 |
| Pro Forma Annualized Impact of Current Quarter Acquisitions and Dispositions, Net ^(1)^ | | 3,834 |
| Pro Forma EBITDA | $ | 50,834 |
| | | |
| Total Long-Term Debt | | 370,248 |
| Financing Costs, Net of Accumulated Amortization | | 1,682 |
| Unamortized Convertible Debt Discount | | 404 |
| Cash & Cash Equivalents | | (9,532) |
| Restricted Cash | | (37,292) |
| Net Debt | $ | 325,510 |
| | | |
| Net Debt to Pro Forma EBITDA | 6.4x | |
| | | |
| ^(1)^ | Reflects the pro forma annualized impact on Annualized EBITDA of the Company’s acquisition and disposition activity during the three months ended September 30, 2022. | |
| --- | --- |
Page 14
Exhibit 99.2
| Investor Presentation<br>REALTY GROWTH<br>October 2022<br>West Broad Village<br>Glen Allen, VA | |
|---|---|
| © CTO Realty Growth, Inc. | ctoreit.com<br>Company Highlights<br>2<br>Differentiated<br>Investment<br>Strategy<br>Focusing on Asset<br>Recycling and Value<br>-<br>Add Acquisitions<br>Sunbelt Retail & Mixed<br>-<br>Use<br>Multi<br>-<br>tenant portfolio in attractive<br>business<br>-<br>friendly markets with strong<br>demographics and outsized long<br>-<br>term<br>growth potential<br>Stable and<br>Flexible<br>Balance Sheet<br>Ample Liquidity and<br>No Upcoming Debt<br>Maturities<br>Active Asset<br>Management<br>Emphasizing<br>Operational Upside<br>Experienced<br>Leadership Team<br>With Deep REIT and<br>Real Estate Experience<br>West Broad Village<br>Glen Allen, VA<br>West Broad Village<br>Glen Allen, VA<br>Jordan Landing<br>West Jordan, UT<br>The Shops at Legacy<br>Plano, TX<br>The Shops at Legacy<br>Plano, TX<br>Madison Yards<br>Atlanta, GA<br>Madison Yards<br>Atlanta, GA<br>Daytona Beachside Restaurants<br>Daytona Beach, FL<br>The Strand at St. John’s Town Center<br>Jacksonville, FL |
| --- | |
| © CTO Realty Growth, Inc. | ctoreit.com<br>Company Profile<br>3<br>As of October 26, 2022, unless otherwise noted.<br>(1)<br>Based on $20.01 per share common stock price as of October 26, 2022.<br>The Exchange at Gwinnet<br>Buford, GA<br>19<br>3.1M<br>8.0%<br>PROPERTIES<br>SQUARE FEET<br>IMPLIED CAP RATE<br>8.4%<br>IMPLIED<br>INVESTMENT YIELD<br>93%<br>LEASED<br>OCCUPANCY<br>$376M<br>$427M<br>$871M<br>EQUITY MARKET CAP<br>(1)<br>OUTSTANDING DEBT<br>ENTERPRISE VALUE<br>(NET OF CASH)<br>SERIES A PREFERRED<br>$75M<br>Q3 2022 ANNUALIZED DIVIDEND<br>$1.52/share<br>7.6%<br>CURRENT ANNUALIZED<br>DIVIDEND YIELD<br>(1)<br><br>$40M<br>INVESTMENT IN<br>ALPINE INCOME PROPERTY TRUST<br>$1.79<br>–<br>$1.82<br>AFFO PER SHARE GUIDANCE RANGE |
| --- | |
| © CTO Realty Growth, Inc. | ctoreit.com<br>NAV Components<br>4<br>Net Operating Income of Income Property Portfolio<br>(1)<br>$60.5<br>$60.5<br>$60.5<br>$60.5<br>$60.5<br>÷<br>Capitalization Rate<br>6.50%<br>6.75%<br>7.00%<br>7.25%<br>7.50%<br>Income Portfolio Value<br>$931.3<br>$896.8<br>$864.8<br>$835.0<br>$807.1<br>Other Assets:<br>+<br>Estimated Value for Subsurface Interests, Mitigation Credits and Other Assets<br>(2)<br>$16.8<br>$16.8<br>$16.8<br>$16.8<br>$16.8<br>+<br>Par Value Outstanding Balance of Structured Investments Portfolio<br>(2)<br>46.4<br>46.4<br>46.4<br>46.4<br>46.4<br>+<br>Cash, Cash Equivalents & Restricted Cash<br>7.4<br>7.4<br>7.4<br>7.4<br>7.4<br>+<br>Value of Shares & Units in Alpine Income Property Trust (PINE)<br>39.6<br>39.6<br>39.6<br>39.6<br>39.6<br>+<br>Value of PINE Management Agreement<br>(3)<br>10.0<br>10.0<br>10.0<br>10.0<br>10.0<br>Other Assets Value<br>$120.2<br>$120.2<br>$120.2<br>$120.2<br>$120.2<br>Total Implied Asset Value<br>$1,051.5<br>$1,017.0<br>$985.0<br>$955.2<br>$927.3<br>-<br>Total Debt Outstanding<br>$426.8<br>$426.8<br>$426.8<br>$426.8<br>$426.8<br>-<br>Series A Preferred Equity<br>$75.0<br>$75.0<br>$75.0<br>$75.0<br>$75.0<br>Note: 18,800,010 shares outstanding as of October 27, 2022.<br>(1)<br>Based on estimated net operating income of the existing income property portfolio assets as of October 26, 2022.<br>(2)<br>As of September 30, 2022.<br>(3)<br>Calculated using the trailing 24<br>-<br>month average management fee paid to CTO by PINE as of September 30, 2022, annualized by mu<br>ltiplying by twelve, and then multiplying by three to account for a termination fee multiple. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Year<br>-<br>To<br>-<br>Date Highlights<br>5<br>Accretive<br>and<br>Opportunistic<br>Investment<br>Activity<br>▪<br>Acquired<br>three<br>multi<br>-<br>tenant<br>retail<br>and<br>mixed<br>-<br>used<br>properties<br>(Price<br>Plaza<br>-<br>Houston,<br>TX,<br>Madison<br>Yards<br>–<br>Atlanta,<br>GA,<br>and<br>West<br>Broad<br>Village<br>–<br>Richmond,<br>VA)<br>at<br>a<br>weighted<br>-<br>average<br>going<br>-<br>in<br>cash<br>cap<br>rate<br>of<br>7<br>..<br>0<br>%<br>for<br>total<br>acquisition<br>volume<br>of<br>$<br>213<br>..<br>2<br>million<br>▪<br>Sold<br>three<br>single<br>tenant<br>income<br>properties,<br>the<br>sole<br>remaining<br>multi<br>-<br>tenant<br>office<br>property,<br>one<br>hotel<br>ground<br>lease,<br>and<br>one<br>muti<br>-<br>tenant<br>retail<br>property<br>for<br>$<br>81<br>..<br>1<br>million<br>at<br>a<br>weighted<br>average<br>exit<br>cap<br>rate<br>of<br>6<br>..<br>2<br>%<br>▪<br>Entered<br>into<br>three<br>structured<br>investments<br>to<br>provide<br>$<br>57<br>..<br>7<br>million<br>of<br>funding<br>towards<br>the<br>development<br>or<br>redevelopment<br>of<br>retail<br>mixed<br>-<br>use<br>properties<br>in<br>submarkets<br>of<br>Atlanta,<br>GA<br>;<br>Dallas,<br>TX<br>;<br>and<br>Orlando,<br>FL<br>at<br>a<br>blended<br>initial<br>yield<br>of<br>8<br>..<br>1<br>%<br>▪<br>Currently<br>have<br>several<br>legacy<br>single<br>tenant<br>office<br>properties<br>on<br>the<br>market<br>for<br>disposition<br>Strong<br>Financial<br>Performance<br>▪<br>Increased Core FFO and AFFO full year 2022 guidance by 17% and 8% per share at the midpoint, respectively, since the beginnin<br>g o<br>f 2022<br>▪<br>Completed three<br>-<br>for<br>-<br>one common stock split, effective July 1, 2022<br>▪<br>Expanded revolving credit facility from $210 million to $300 million and extended the maturity date to January 2027; no debt<br>mat<br>urities until 2025<br>▪<br>Declared a $0.38 Q3 2022 quarterly common stock dividend, representing a 14% increase over the Q3 2021 quarterly common stock<br>di<br>vidend and a<br>Q3 2022 AFFO payout ratio of 78%<br>Attractive<br>and<br>Well<br>Performing<br>Portfolio<br>▪<br>Year<br>-<br>to<br>-<br>date Q3 2022 Same<br>-<br>Property NOI increase of 21.5%<br>▪<br>28% of annualized base rents come from grocery<br>-<br>anchored assets; 88% of annualized base rents come from retail and mixed<br>-<br>use prop<br>erties<br>▪<br>Currently 91% occupied and 93% leased<br>▪<br>Signed 173,363 square feet of new leases, renewals and extensions with an average increase of 18.6%<br>(1)<br>through the first three quarters of 2022<br>As of October 26, 2022, unless otherwise noted.<br>(1)<br>Excludes newly leased units that were acquired as vacant. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Differentiated Investment Strategy<br>6<br>CTO has a retail<br>-<br>oriented real estate strategy that focuses on owning, operating and investing in<br>high<br>-<br>quality properties through direct investment and management structures<br>Multi<br>-<br>Tenant Asset Strategy<br>▪<br>Focused on retail<br>-<br>based multi<br>-<br>tenanted assets<br>that have a grocery, lifestyle or<br>community<br>-<br>oriented retail component and a complimentary mixed<br>-<br>use component,<br>located in higher growth MSAs within the continental United States<br>▪<br>Acquisition targets are in higher growth markets and exhibit<br>strong current in<br>-<br>place<br>yields with a future potential for increased returns<br>through a combination of<br>vacancy lease<br>-<br>up, redevelopment or rolling in<br>-<br>place leases to higher market rental rates<br>Monetization of Non<br>-<br>Income Producing Assets<br>▪<br>CTO has a number of legacy non<br>-<br>income producing assets (mitigation credits and<br>mineral rights) that when monetized, will unlock meaningful equity to be redeployed<br>into income producing assets that<br>can organically drive higher cash flow, FFO and<br>AFFO per share<br>Alpine Income Property Trust and Retained Net Lease Assets<br>▪<br>CTO seeded and externally manages Alpine Income Property Trust (NYSE: PINE), a<br>pure play net lease REIT, which is a<br>meaningful and attractive source of<br>management fee income and dividend income through its direct investment of<br>REIT shares and OP unit holdings<br>Targeting Multi<br>-<br>Tenant, Retail<br>-<br>Based,<br>Value<br>-<br>Add Income Property Acquisitions<br>Monetize Legacy Mitigation Credits,<br>Mineral Rights and Other Assets<br>Manage and Retain Ownership in<br>Alpine REIT (NYSE:PINE)<br>Monetize the Retained Net Lease & Office<br>Properties at Opportunistic Valuations<br>Focused<br>Execution |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Peer Comparisons<br>15.0x<br>12.7x<br>11.8x<br>11.4x<br>11.4x<br>10.8x<br>10.2x<br>10.0x<br>9.9x<br>8.8x<br>8.6x<br>4.5%<br>4.3%<br>4.6%<br>4.6%<br>7.6%<br>5.3%<br>4.3%<br>4.7%<br>4.5%<br>5.3%<br>5.8%<br>3.50%<br>4.50%<br>5.50%<br>6.50%<br>7.50%<br>8.50%<br> 8.0x<br> 9.0x<br> 10.0x<br> 11.0x<br> 12.0x<br> 13.0x<br> 14.0x<br> 15.0x<br> 16.0x<br>FRT<br>KIM<br>AAT<br>UE<br>CTO<br>AKR<br>SITC<br>BRX<br>KRG<br>WSR<br>RPT<br>(1)<br>All 2022E peer FFO multiples and dividend yield information are based on the closing stock price on July 22, 2022, using annu<br>ali<br>zed dividends and 2022E FFO per share estimates from the KeyBank The Leaderboard report dated July 24, 2022; CTO’s FFO multip<br>le<br>and dividend yield is based on its<br>closing stock price on July 22, 2022, using its Q2 annualized dividend announced on May 24, 2022 (split adjusted), and 2022E<br>Cor<br>e FFO per share guidance as included in the Company’s 2022 Guidance provided on July 28, 2022.<br>CTO has an<br>outsized dividend yield<br>and<br>attractive absolute valuation<br>relative<br>to many of its retail<br>-<br>focused peer group, implying valuation upside.<br>2022E FFO Multiple and Annualized Dividend Yield<br>(1)<br>7<br>CTO is trading at an<br>implied<br>8.0%<br>cap rate<br>on its income producing<br>property NOI and has a<br>current<br>dividend yield of 7.6% |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Real Estate and Investment Strategy<br>CTO’s investment strategy is focused on generating relative outsized returns for our shareholders by acquiring and<br>owning well<br>-<br>located properties in markets and states that are business and tax friendly, where the long<br>-<br>term cash<br>flows and underlying real estate values are supported by significant population and job growth.<br>▪<br>Focused on markets/states projected to have outsized job<br>and population growth with favorable business climates<br>▪<br>Geographic emphasis set to benefit from strong retailer<br>demand to serve increasing populations<br>▪<br>Differentiated asset investment strategy prioritizes value<br>-<br>add retail and mixed<br>-<br>use properties with strong real estate<br>fundamentals<br>▪<br>Track record of acquiring at meaningful discounts to<br>replacement cost and below market leases where real<br>estate fundamentals will drive outsized rental rate growth<br>▪<br>Seek properties with leasing or repositioning upside or<br>highly stable assets with an identifiable opportunity to<br>drive long<br>-<br>term, outsized risk<br>-<br>adjusted returns<br>Miami<br>Orlando<br>Jacksonvill<br>e<br>Tampa<br>Atlanta<br>Nashville<br>Charlotte<br>Raleigh<br>-<br>Durham<br>Washington, DC<br>Dallas<br>Houston<br>Austin<br>Denver<br>Boulder<br>Salt Lake City<br>Las Vegas<br>Reno<br>Phoenix<br>8<br>CTO Target Market |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Meaningful Progress with Portfolio Repositioning<br>9<br>$365<br>$489<br>$374<br>0.0<br>50.0<br>100.0<br>150.0<br>200.0<br>250.0<br>300.0<br>350.0<br>400.0<br>450.0<br>500.0<br>0.0%<br>10000.0%<br>20000.0%<br>30000.0%<br>40000.0%<br>50000.0%<br>2020<br>2021<br>2022 Guidance<br>Monetization of Non-Core<br>Legacy Assets<br>Dispositions<br>Investments<br>Investment<br>and<br>Disposition<br>Activity<br>Cumulative Investment Activity<br>(1)<br>Reflects the midpoint of 2022 Guidance provided on October 27, 2022.<br>(1)<br>The Shops at Legacy<br>Plano, TX<br>The Shops at Legacy<br>Plano, TX |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Durable Portfolio with Growth Opportunities<br>Recently constructed retail and mixed<br>-<br>use portfolio with a combination of value<br>-<br>add lease up, redevelopment and<br>stable, in<br>-<br>place cash flows in some of the strongest markets in the United States.<br>10<br>Stable<br>Cash Flow<br>Essential<br>Retail<br>Repositioning<br>Upside<br>The Shops at Legacy<br>Plano, TX<br>Ashford Lane<br>Atlanta, GA<br>125 Lincoln & 150 Washington<br>Santa Fe, NM<br>Madison Yards<br>Atlanta, GA<br>The Exchange at Gwinnett<br>Buford, GA<br>The Strand at St. John’s Town Center<br>Jacksonville, FL<br>Crossroads Towne Center<br>Chandler, AZ<br>Beaver Creek Crossings<br>Apex, NC<br>West Broad Village<br>Glen Allen, VA |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Recent Acquisition<br>–<br>West Broad Village, Glen Allen, VA<br>11<br>Newly acquired 392,000 square foot<br>grocery<br>-<br>anchored, mixed<br>-<br>use lifestyle<br>center with attractive long<br>-<br>term upside<br>from value<br>-<br>add leasing<br>▪<br>Region’s premier mixed<br>-<br>use destination property<br>anchored by Whole Foods (S&P: AA<br>-<br>)<br>▪<br>Built between 2007 and 2014 and prominently<br>situated on 32.6 acres within Richmond’s<br>affluent Short Pump submarket<br>▪<br>National and local tenant lineup concentrated in<br>grocery, food & beverage, education, childcare,<br>entertainment, home décor, and medical sectors<br>▪<br>Amplified trade area allowing the property<br>to benefit from five<br>-<br>mile average household<br>incomes of more than $140,000 and a five<br>-<br>mile population of nearly 175,000<br>▪<br>Acquired for $239 per square foot,<br>meaningfully below replacement cost<br>▪<br>More than 68,000 square feet of acquired<br>vacancy to drive future cash flow<br>West Broad Village<br>Glen Allen, VA<br>West Broad Village<br>Glen Allen, VA<br>West Broad Village<br>Glen Allen, VA<br>West Broad Village<br>West Broad Village<br>Glen Allen, VA |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Recent Acquisition<br>–<br>Madison Yards, Atlanta, GA<br>12<br>Recently acquired 162,500 square foot grocery<br>-<br>anchored shopping center that has established Atlanta<br>as CTO’s top investment market<br>▪<br>Stable, high barrier<br>-<br>to<br>-<br>entry, in<br>-<br>fill location in Atlanta’s<br>Inman Park/Beltline submarket<br>▪<br>Over 445 feet of direct Beltline frontage, Atlanta’s 22<br>-<br>mile cultural, multiuse outdoor loop that attracts 1.7<br>million visitors annually<br>▪<br>True live, work, play property, anchored by Publix (17<br>years) and AMC (13 years), complimented by a service,<br>experiential and food driven tenant lineup<br>▪<br>All leases except for one have base term rent increases<br>▪<br>More than 500 directly adjacent multi<br>-<br>family units and<br>townhomes<br>▪<br>Population over 171,500 in a 3<br>-<br>mile radius; average<br>household income of $130,000 in one mile<br>▪<br>High<br>-<br>quality, class A property built in 2019<br>Madison Yards<br>Atlanta, GA<br>Madison Yards<br>Atlanta, GA<br>The Beltline<br>Madison Yards |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Strong Demographic Portfolio<br>13<br>Percentages listed based on Annualized Base Rent. Differences are a result of rounding.<br>(1)<br>Source: Esri; Portfolio average weighted by the Annualized Base Rent of each property.<br>(2)<br>As ranked by Urban Land Institute & PWC in the ‘2022 Emerging Trends in Real Estate’ publication.<br>Income Producing Property<br>Atlanta, GA<br>23%<br>Dallas, TX<br>13%<br>Richmond, VA<br>13%<br>Raleigh, NC<br>8%<br>Jacksonville, FL<br>8%<br>Phoenix, AZ<br>7%<br>Albuquerque, NM<br>6%<br>Houston, TX<br>5%<br>Santa Fe, NM<br>4%<br>Tampa, FL<br>4%<br>Salt Lake City, UT<br>3%<br>Las Vegas, NV<br>3%<br>Washington, DC<br>2%<br>Daytona Beach, FL<br>2%<br>Orlando, FL<br><1%<br>Denotes an MSA with over one million people;<br>Bold denotes a Top 30 ULI Market<br>(2)<br>% of Annualized Rent By State<br>228,950<br>Portfolio Average<br>5<br>-<br>Mile Population<br>(1)<br>$130,500<br>Portfolio Average<br>5<br>-<br>Mile Household Income<br>(1)<br>0.9%<br>Portfolio Average 2022<br>-<br>2027<br>Projected Annual Population Growth<br>(1)<br>68%<br>Percentage of Portfolio ABR<br>from<br>ULI’s Top 30 Markets<br>(1)<br>> 20% 10%<br>-<br>20% 5%<br>-<br>10% < 5% |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Meaningful Property Cash Flow & Leasing Momentum<br>14<br>1%<br>5%<br>4%<br>6%<br>15%<br>10%<br>18%<br>9%<br>6%<br>5%<br>6%<br>15%<br>0.0%<br>1.0%<br>2.0%<br>3.0%<br>4.0%<br>5.0%<br>6.0%<br>7.0%<br>8.0%<br>9.0%<br>10.0%<br>11.0%<br>12.0%<br>13.0%<br>14.0%<br>15.0%<br>16.0%<br>17.0%<br>18.0%<br>19.0%<br>20.0%<br>Lease Rollover<br>Schedule<br>(1)<br>% of ABR Expiring<br>Leases Signed<br>in 2022<br>▪<br>YTD Q3 2022 Year<br>-<br>Over<br>-<br>Year Same<br>-<br>Property NOI<br>21.5%<br>o<br>31.5% YTD Q3 2022 multi<br>-<br>tenant same<br>-<br>property NOI growth<br>o<br>6.1% YTD Q3 2022 single tenant same<br>-<br>property NOI growth<br>▪<br>YTD Q3 2022 Leasing Spreads<br>18.6%<br>o<br>58.0% new lease spreads (excluding acquired vacancy)<br>o<br>4.4% option & renewal spreads<br>▪<br>Leased Occupancy<br>93%<br>o<br>Over<br>200 bps of future occupancy pickup<br>based on current<br>spread between Occupancy and Leased Occupancy<br>As of September 30, 2022, unless otherwise noted.<br>(1)<br>As of October 26, 2022. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Repositioning<br>–<br>Ashford Lane, Atlanta, GA<br>15<br>Ashford Lane will incorporate<br>outdoor seating and eating areas,<br>along with a number of new green<br>spaces, including<br>The Lawn<br>, that<br>will drive a more community<br>-<br>focused experience<br>(Not Owned)<br>(Not Owned)<br>(Not Owned)<br>THE HALL<br>Ashford Lane<br>Atlanta, GA<br>Acquired as Perimeter Place in 2020, with an<br>opportunity to up<br>-<br>tier through targeted lease<br>-<br>up, an<br>improved tenant mix and market repositioning<br>▪<br>High barrier<br>-<br>to<br>-<br>entry location with new residential projects,<br>increasing density and 24<br>-<br>hour demand<br>▪<br>Near southeast corporate headquarters for UPS, State Farm,<br>First Data, IHG and Mercedes Benz<br>▪<br>5<br>-<br>mile population of more than 248,000; 5<br>-<br>mile average<br>household income of $164,000<br>THE HALL |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Repositioning<br>–<br>Ashford Lane, Atlanta, GA<br>16<br>Ashford Lane is being repositioned as a higher<br>-<br>end<br>shopping and dining destination within a growing<br>and relatively affluent submarket of Atlanta<br>▪<br>Opportunity to deliver increased rental rates with<br>higher<br>-<br>end tenants supported by new multi<br>-<br>family<br>and office development<br>▪<br>Additional green space, outdoor seating and eating<br>areas will support improved foot traffic and offer<br>restaurant<br>-<br>focused amenities<br>▪<br>Signed new leases with the following notable tenants<br>in 2021 and 2022:<br>Ashford Lane<br>Atlanta, GA<br>Ashford Lane<br>Atlanta, GA<br>Ashford Lane<br>Atlanta, GA<br>Ashford Lane<br>Atlanta, GA<br>Ashford Lane<br>Atlanta, GA |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Repositioning<br>–<br>125 Lincoln & 150 Washington, Santa Fe, NM<br>17<br>Signed a 9,200 square foot lease<br>with the Rosewood Inn of Anasazi<br>operator who will create four high<br>-<br>end suites on the 4<br>th<br>floor<br>▪<br>Two<br>-<br>building property with dedicated<br>underground parking in the heart of Santa Fe,<br>just north of the historic Santa Fe Plaza<br>▪<br>Recently installed paid parking system to drive<br>increased operational cash flow<br>▪<br>Currently negotiating letters of intent and forms<br>of lease with multiple prospective tenants<br>▪<br>Prime 12,000 square foot street<br>-<br>level vacancy<br>available for lease to anchor the property’s<br>repositioning in the market<br>Plaza<br>125 Lincoln & 150 Washington<br>Santa Fe, NM<br>125 Lincoln & 150 Washington<br>Santa Fe, NM<br>125 Lincoln & 150 Washington<br>Santa Fe, NM |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Consistent Dividend Growth<br>18<br>$0.01<br>$0.01<br>$0.02<br>$0.02<br>$0.02<br>$0.03<br>$0.05<br>$0.07<br>$0.12<br>$0.91<br>$1.33<br>$1.48<br>2011<br>2012<br>2013<br>2014<br>2015<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>2022<br>(1)<br>Implied 2022 dividend calculated as the paid Q1, Q2 and Q3 2022 dividends of $0.36, 0.37 and 0.38 per common share, respecti<br>vely, annualized to indicate the implied dividends that could be paid in all of 2022. The 2022 implied dividend is presented<br>fo<br>r illustrative purposes only and there are no<br>guarantees the Company will pay a dividend in the future.<br>(2)<br>2022E AFFO per share for CTO is the midpoint of guidance, as provided on October 27, 2022.<br>(3)<br>Based on $20.02 per share common stock price as of October 26, 2022.<br>▪<br>46<br>consecutive<br>years<br>of<br>paying<br>a<br>common<br>dividend<br>▪<br>Under<br>current<br>management<br>(beginning<br>in<br>2011<br>),<br>the<br>Company’s<br>common<br>stock<br>cash<br>dividend<br>has<br>grown<br>in<br>each<br>of<br>the<br>last<br>10<br>years<br>▪<br>Company<br>policy<br>is<br>to<br>target<br>a<br>payout<br>ratio<br>of<br>100<br>%<br>of<br>taxable<br>income<br>▪<br>Dividend<br>increases<br>are<br>driven<br>by<br>increasing<br>taxable<br>income<br>and<br>free<br>cash<br>flow<br>▪<br>Current<br>midpoint<br>of<br>guidance<br>(<br>2<br>)<br>implies<br>an<br>84<br>%<br>2022<br>E<br>AFFO<br>per<br>share<br>dividend<br>payout<br>ratio<br>(1)<br>CTO converted to a REIT in<br>December of 2020, accelerating<br>the required dividend payout<br>Increasing cash flow and<br>earnings have driven a more<br>than<br>63% increase<br>to CTO’s<br>annualized common stock<br>dividend since 2020<br>Cash Dividend Per Share Paid (Split Adjusted)<br>Current Annualized Per Share Cash Dividend<br>$1.52<br>Annualized Per Share Cash Dividend Yield<br>(3)<br>7.6% |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>2022 Guidance<br>19<br>$ and shares outstanding in millions, except per share data.<br>As of October 27, 2022, unless otherwise noted.<br>CTO has provided guidance indicating as much as<br>55% year<br>-<br>over<br>-<br>year Core FFO per share growth<br>in 2022.<br>Low<br>High<br>Investments<br>$271 million<br>–<br>$271 million<br>$271 million of investments<br>Target Initial Cash Yield<br>7.25%<br>–<br>7.25%<br>7.25%<br>Dispositions<br>$81 million<br>–<br>$83 million<br>$81 million of dispositions<br>Target Disposition Cash Yield<br>6.15%<br>–<br>6.25%<br>6.22%<br>Core FFO Per Diluted Share<br>$1.71<br>–<br>$1.74<br>$1.41 YTD in Q3 2022<br>AFFO Per Diluted Share<br>$1.79<br>–<br>$1.82<br>$1.47 YTD in Q3 2022<br>Weighted Average Diluted<br>Shares Outstanding<br>18.2 million<br>–<br>18.2 million<br>18.0 million YTD in Q3 2022<br>Revised 2022<br>Year<br>-<br>To<br>-<br>Date Performance |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Balance Sheet<br>20<br>$51<br>$83<br>$100<br>$139<br>2022<br>2023<br>2024<br>2025<br>2026<br>2027<br>2028<br>2029<br>2030<br>Unsecured<br>Secured<br>Revolving Credit Facility<br>As of September 30, 2022.<br>$ and shares outstanding in millions.<br>(1)<br>Reflects $38.5 million outstanding under the Company’s $300 million senior unsecured revolving credit facility; the Company’<br>s senior unsecured revolving credit facility matures in January 2027 and includes a one<br>-<br>year extension option to January 2028, s<br>ubject to satisfaction of certain conditions; the<br>maturity date reflected assumes the Company exercises the one<br>-<br>year extension option.<br>(2)<br>The Company utilized interest rate swaps on the $65.0 million 2026 Term Loan balance to fix SOFR and achieve a weighted aver<br>age fixed swap rate of 0.26% plus the 10 bps SOFR adjustment plus the applicable spread.<br>(3)<br>The Company utilized interest rate swaps on the $100.0 million 2027 Term Loan balance to fix SOFR and achieve a fixed swap r<br>ate of 0.64% plus the 10 bps SOFR adjustment plus the applicable spread.<br>(4)<br>The Company entered into interest rate swaps on the $100.0 million 2028 Term Loan balance to fix SOFR and achieve a weighted<br>average fixed swap rate of 3.78% plus the 10 bps SOFR adjustment plus the applicable spread.<br>Debt Maturities<br>▪<br>Significant liquidity for<br>opportunistic growth<br>▪<br>No near<br>-<br>term debt maturities<br>▪<br>Minimal exposure to floating<br>interest rates<br>▪<br>43% net debt<br>-<br>to<br>-<br>total<br>enterprise value (TEV)<br>▪<br>6.4x Net Debt<br>-<br>to<br>-<br>Pro Forma<br>EBITDA<br>(1)<br>Component of Long<br>-<br>Term Debt<br>Type<br>Principal<br>Interest Rate<br>Revolving Credit Facility<br>Floating<br>$38.5 million<br>SOFR + 10 bps + [1.25%<br>-<br>2.20%]<br>2025 Convertible Senior Notes<br>Fixed<br>$51.0 million<br>3.88%<br>2026 Term Loan<br>(2)<br>Fixed<br>$65.0 million<br>SOFR + 10 bps + [1.25%<br>-<br>2.20%]<br>2027 Term Loan<br>(3)<br>Fixed<br>$100.0 million<br>SOFR + 10 bps + [1.25%<br>-<br>2.20%]<br>2028 Term Loan<br>(4)<br>Fixed<br>$100.0 million<br>SOFR + 10 bps + [1.20%<br>-<br>2.15%]<br>Mortgage Note<br>Fixed<br>$17.8 million<br>4.06%<br>Total Debt<br>10% Floating<br>$372.3 million<br>3.44% |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Experienced Management Team<br>CTO Realty Growth is led by an experienced management team with<br>meaningful shareholder alignment<br>, deep<br>industry relationships and a strong long<br>-<br>term track record.<br>21<br>John P. Albright<br>President & Chief Executive Officer<br>▪<br>Former Co<br>-<br>Head and Managing Director of Archon Capital, a Goldman<br>Sachs Company; Executive Director of Merchant Banking<br>–<br>Investment<br>Management at Morgan Stanley; and Managing Director of Crescent Real<br>Estate (NYSE: CEI)<br>Daniel E. Smith<br>Senior Vice President, General Counsel & Corporate Secretary<br>▪<br>Former Vice President and Associate General Counsel of Goldman Sachs<br>& Co. and Senior Vice President and General Counsel of Crescent Real<br>Estate (NYSE: CEI)<br>Lisa M. Vorakoun<br>Vice President & Chief Accounting Officer<br>▪<br>Former Assistant Finance Director for the City of DeLand, Florida and<br>Audit Manager for James Moore & Company, an Accounting and<br>Consulting Firm<br>Matthew M. Partridge<br>Senior Vice President, Chief Financial Officer & Treasurer<br>▪<br>Former Chief Operating Officer and Chief Financial Officer of Hutton;<br>Executive Vice President, Chief Financial Officer and Secretary of Agree<br>Realty Corporation (NYSE: ADC); and Vice President of Finance for<br>Pebblebrook Hotel Trust (NYSE: PEB)<br>Steven R. Greathouse<br>Senior Vice President & Chief Investment Officer<br>▪<br>Former Director of Finance for N3 Real Estate; Senior Associate of<br>Merchant Banking<br>–<br>Investment Management at Morgan Stanley; and<br>Senior Associate at Crescent Real Estate (NYSE: CEI)<br>Helal A. Ismail<br>Vice President<br>–<br>Investments<br>▪<br>Former Associate of Jefferies Real Estate Gaming and Lodging<br>Investment Banking and Manager at B<br>-<br>MAT Homes, Inc. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>ESG<br>–<br>Corporate Responsibility<br>CTO Realty Growth is committed to sustainability, strong corporate governance,<br>and meaningful corporate social responsibility programs.<br>22<br>Social Responsibility<br>Inclusive and Supportive Company Culture<br>▪<br>Dedicated to an inclusive and supportive office environment filled with diverse backgrounds<br>and perspectives, with a demonstrated commitment to financial, mental and physical wellness<br>Notable Community Outreach<br>▪<br>Numerous and diverse community outreach programs, supporting environmental, artistic, civil<br>and social organizations in the community<br>Corporate Governance<br>▪<br>Independent Chairman of the Board and 5 of<br>6 Directors classified as independent<br>▪<br>Annual election of all Directors<br>▪<br>Annual Board of Director evaluations<br>▪<br>Board oversees risk assessment/management,<br>with oversight for specific areas of risk<br>delegated to Board committees<br>▪<br>Stock ownership requirements for all<br>Executive Management and Directors<br>▪<br>Prohibition against hedging and pledging<br>CTO Realty Growth stock<br>▪<br>Robust policies and procedures for approval of<br>related party transactions<br>▪<br>All team members adhere to a comprehensive<br>Code of Business Conduct and Ethics policy |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>ESG<br>–<br>Environmental Responsibility<br>23<br>Over the past nine years,<br>CTO has planted<br>approximately 170,000<br>pine trees in Florida and<br>has restored over 700<br>acres of former industrial<br>timberland. These<br>170,000 trees absorb<br>more than 1,000 tons of<br>carbon each year.<br>Environmental Responsibility<br>Committed Focus & Targeted Investment<br>▪<br>Committed to maintaining an environmentally conscious culture, the<br>utilization of environmentally friendly & renewable products, and the<br>promotion of sustainable business practices. Notable achievements:<br>o<br>Formed a conservation mitigation bank on approximately 2,500<br>acres of land, resulting in the land being barred from<br>development permanently preserved<br>o<br>Invested in LED lighting, recycling and waste reduction<br>strategies, programmable thermostats, energy management<br>systems in our office and/or at our owned properties<br>o<br>Conveyed over 11,000 acres of land to the State of Florida to<br>significantly enlarge the neighboring Tiger Bay State Forest<br>Tenant Alignment<br>▪<br>Alignment with environmentally aware tenants who have strong<br>sustainability programs and initiatives embedded into their corporate<br>culture and business practices |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Key Takeaways<br>24<br>Earnings<br>Growth<br>Through<br>Capital<br>Recycling<br>Strong,<br>long<br>-<br>term<br>track<br>record<br>of<br>monetizing<br>assets<br>at<br>favorable<br>spreads<br>to<br>drive<br>accretive<br>earnings<br>growth<br>and<br>attractive<br>risk<br>-<br>adjusted<br>returns<br>..<br>Attractive<br>Dividend<br>and<br>Improving<br>Payout<br>Ratio<br>CTO<br>paid<br>a<br>$<br>0<br>..<br>38<br>third<br>quarter<br>cash<br>dividend,<br>representing<br>a<br>7<br>..<br>6<br>%<br>in<br>-<br>place<br>annualized<br>yield<br>and<br>improved<br>AFFO<br>payout<br>ratio<br>(<br>84<br>%<br>based<br>on<br>the<br>midpoint<br>of<br>2022<br>AFFO<br>guidance)<br>driven<br>by<br>the<br>monetization<br>and<br>reinvestment<br>of<br>low<br>cap<br>rate,<br>single<br>tenant<br>properties<br>and<br>non<br>-<br>income<br>producing<br>assets<br>and<br>strong<br>same<br>-<br>store<br>net<br>operating<br>income<br>growth<br>..<br>Valuation upside to the Peer Group<br>Valuation<br>upside<br>as<br>CTO<br>is<br>faster<br>growing<br>with<br>a<br>comparable<br>2022<br>E<br>FFO<br>multiple<br>compared<br>to<br>the<br>slower<br>growing,<br>retail<br>-<br>focused<br>peers<br>..<br>Differentiated<br>Investment<br>Strategy<br>Retail<br>-<br>based<br>investment<br>strategy<br>focused<br>on<br>grocery<br>-<br>anchored,<br>traditional<br>retail<br>and<br>mixed<br>-<br>use<br>properties<br>with<br>value<br>-<br>add<br>or<br>long<br>-<br>term<br>residual<br>value<br>opportunities<br>with<br>strong<br>real<br>estate<br>fundamentals<br>in<br>growing<br>markets<br>that<br>can<br>be<br>acquired<br>at<br>meaningful<br>discounts<br>to<br>replacement<br>cost<br>..<br>High<br>-<br>Quality<br>Portfolio<br>in<br>Faster<br>Growing,<br>Business<br>Friendly<br>Locations<br>with<br>Operational<br>Upside<br>Recently<br>constructed<br>real<br>estate<br>portfolio<br>with<br>a<br>durable,<br>stable<br>tenant<br>base<br>located<br>in<br>faster<br>growing,<br>business<br>friendly<br>markets<br>such<br>as<br>Atlanta,<br>Dallas,<br>Raleigh,<br>Richmond,<br>Phoenix,<br>Jacksonville,<br>Tampa,<br>Houston,<br>and<br>Salt<br>Lake<br>City,<br>with<br>acquired<br>vacancy<br>and/or<br>repositioning<br>upside<br>..<br>Profitable<br>External<br>Investment<br>Management<br>External<br>management<br>of<br>Alpine<br>Income<br>Property<br>Trust,<br>Inc<br>..<br>(NYSE<br>:<br>PINE),<br>a<br>high<br>-<br>growth,<br>publicly<br>traded,<br>single<br>tenant<br>net<br>lease<br>REIT,<br>provides<br>excellent<br>in<br>-<br>place<br>cash<br>flow<br>and<br>significant<br>valuation<br>upside<br>through<br>the<br>CTO’s<br>16<br>%<br>retained<br>ownership<br>position<br>..<br>Stable<br>and<br>Flexible<br>Balance<br>Sheet<br>Conservatively<br>levered<br>balance<br>sheet<br>with<br>ample<br>liquidity,<br>no<br>near<br>-<br>term<br>debt<br>maturities<br>and<br>a<br>demonstrated<br>access<br>to<br>multiple<br>capital<br>sources<br>provides<br>financial<br>stability<br>and<br>flexibility<br>..<br>As of October 26, 2022, unless otherwise noted. |
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| NYSE: CTO<br>Appendix<br>The Shops at Legacy<br>Plano, TX | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Schedule of Properties<br>26<br>Property<br>Market<br>Asset Type<br>Property<br>Type<br>Square<br>Feet<br>In<br>-<br>Place<br>Occupancy<br>Leased<br>Occupancy<br>% of ABR<br>West Broad Village<br>–<br>Glen Allen, VA<br>Richmond, VA<br>Multi<br>-<br>Tenant<br>Mixed Use<br>392,007<br>83%<br>83%<br>13%<br>The Shops at Legacy<br>–<br>Plano, TX<br>Dallas, TX<br>Multi<br>-<br>Tenant<br>Mixed Use<br>237,366<br>92%<br>96%<br>12%<br>Ashford Lane<br>–<br>Atlanta, GA<br>Atlanta, GA<br>Multi<br>-<br>Tenant<br>Retail<br>277,407<br>78%<br>86%<br>11%<br>Beaver Creek Crossings<br>–<br>Apex, NC<br>Raleigh, NC<br>Multi<br>-<br>Tenant<br>Retail<br>321,977<br>94%<br>98%<br>8%<br>Madison Yards<br>–<br>Atlanta, GA<br>Atlanta, GA<br>Multi<br>-<br>Tenant<br>Retail<br>162,521<br>99%<br>99%<br>8%<br>The Strand<br>–<br>Jacksonville, FL<br>Jacksonville, FL<br>Multi<br>-<br>Tenant<br>Retail<br>210,973<br>91%<br>95%<br>8%<br>Crossroads Towne Center<br>–<br>Chandler, AZ<br>Phoenix, AZ<br>Multi<br>-<br>Tenant<br>Retail<br>244,843<br>100%<br>100%<br>7%<br>Fidelity<br>–<br>Albuquerque, NM<br>Albuquerque, NM<br>Single Tenant<br>Office<br>210,067<br>100%<br>100%<br>6%<br>Price Plaza Shopping Center<br>–<br>Katy, TX<br>Houston, TX<br>Multi<br>-<br>Tenant<br>Retail<br>205,813<br>95%<br>95%<br>5%<br>125 Lincoln & 150 Washington<br>-<br>Santa Fe, NM<br>Santa Fe, NM<br>Multi<br>-<br>Tenant<br>Mixed Use<br>137,209<br>75%<br>84%<br>4%<br>The Exchange at Gwinnett<br>-<br>Buford, GA<br>Atlanta, GA<br>Multi<br>-<br>Tenant<br>Retail<br>69,266<br>92%<br>96%<br>4%<br>As of October 26, 2022, unless otherwise noted. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Schedule of Properties<br>27<br>Property<br>Market<br>Asset Type<br>Property<br>Type<br>Square<br>Feet<br>In<br>-<br>Place<br>Occupancy<br>Leased<br>Occupancy<br>% of ABR<br>Sabal Pavilion<br>–<br>Tampa, FL<br>Tampa, FL<br>Single Tenant<br>Office<br>120,500<br>100%<br>100%<br>4%<br>Jordan Landing<br>–<br>West Jordan, UT<br>Salt Lake City, UT<br>Multi<br>-<br>Tenant<br>Retail<br>170,996<br>100%<br>100%<br>3%<br>Eastern Commons<br>–<br>Henderson, NV<br>Las Vegas, NV<br>Multi<br>-<br>Tenant<br>Retail<br>133,304<br>100%<br>100%<br>2%<br>General Dynamics<br>–<br>Reston, VA<br>Washington, DC<br>Single Tenant<br>Office<br>64,319<br>100%<br>100%<br>2%<br>Landshark Bar & Grill<br>–<br>Daytona Beach, FL<br>Daytona Beach, FL<br>Single Tenant<br>Retail<br>6,264<br>100%<br>100%<br>1%<br>Westcliff Shopping Center<br>–<br>Fort Worth, TX<br>Dallas, TX<br>Multi<br>-<br>Tenant<br>Retail<br>134,693<br>61%<br>61%<br>< 1%<br>369 N. New York Ave<br>–<br>Winter Park, FL<br>Orlando, FL<br>Multi<br>-<br>Tenant<br>Mixed Use<br>30,296<br>84%<br>100%<br>< 1%<br>Crabby’s Oceanside<br>–<br>Daytona Beach, FL<br>Daytona Beach, FL<br>Single Tenant<br>Retail<br>5,780<br>100%<br>100%<br>< 1%<br>As of October 26, 2022, unless otherwise noted. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Forward Looking Statements & Non<br>-<br>GAAP Financial Measures<br>28<br>Forward<br>Looking<br>Statements<br>Certain<br>statements<br>contained<br>in<br>this<br>presentation<br>(other<br>than<br>statements<br>of<br>historical<br>fact)<br>are<br>forward<br>-<br>looking<br>statements<br>within<br>the<br>meaning<br>of<br>Section<br>27<br>A<br>of<br>the<br>Securities<br>Act<br>of<br>1933<br>,<br>as<br>amended<br>and<br>Section<br>21<br>E<br>of<br>the<br>Securities<br>Exchange<br>Act<br>of<br>1934<br>,<br>as<br>amended<br>..<br>Forward<br>-<br>looking<br>statements<br>can<br>typically<br>be<br>identified<br>by<br>words<br>such<br>as<br>“believe,”<br>“estimate,”<br>“expect,”<br>“intend,”<br>“anticipate,”<br>“will,”<br>“could,”<br>“may,”<br>“should,”<br>“plan,”<br>“potential,”<br>“predict,”<br>“forecast,”<br>“project,”<br>and<br>similar<br>expressions,<br>as<br>well<br>as<br>variations<br>or<br>negatives<br>of<br>these<br>words<br>..<br>Although<br>forward<br>-<br>looking<br>statements<br>are<br>made<br>based<br>upon<br>management’s<br>present<br>expectations<br>and<br>reasonable<br>beliefs<br>concerning<br>future<br>developments<br>and<br>their<br>potential<br>effect<br>upon<br>the<br>Company,<br>a<br>number<br>of<br>factors<br>could<br>cause<br>the<br>Company’s<br>actual<br>results<br>to<br>differ<br>materially<br>from<br>those<br>set<br>forth<br>in<br>the<br>forward<br>-<br>looking<br>statements<br>..<br>Such<br>factors<br>may<br>include,<br>but<br>are<br>not<br>limited<br>to<br>:<br>the<br>Company’s<br>ability<br>to<br>remain<br>qualified<br>as<br>a<br>REIT<br>;<br>the<br>Company’s<br>exposure<br>to<br>U<br>..<br>S<br>..<br>federal<br>and<br>state<br>income<br>tax<br>law<br>changes,<br>including<br>changes<br>to<br>the<br>REIT<br>requirements<br>;<br>general<br>adverse<br>economic<br>and<br>real<br>estate<br>conditions<br>;<br>macroeconomic<br>and<br>geopolitical<br>factors,<br>including<br>but<br>not<br>limited<br>to<br>inflationary<br>pressures,<br>interest<br>rate<br>volatility,<br>global<br>supply<br>chain<br>disruptions,<br>and<br>ongoing<br>geopolitical<br>war<br>;<br>the<br>ultimate<br>geographic<br>spread,<br>severity<br>and<br>duration<br>of<br>pandemics<br>such<br>as<br>the<br>COVID<br>-<br>19<br>Pandemic<br>and<br>its<br>variants,<br>actions<br>that<br>may<br>be<br>taken<br>by<br>governmental<br>authorities<br>to<br>contain<br>or<br>address<br>the<br>impact<br>of<br>such<br>pandemics,<br>and<br>the<br>potential<br>negative<br>impacts<br>of<br>such<br>pandemics<br>on<br>the<br>global<br>economy<br>and<br>the<br>Company’s<br>financial<br>condition<br>and<br>results<br>of<br>operations<br>;<br>the<br>inability<br>of<br>major<br>tenants<br>to<br>continue<br>paying<br>their<br>rent<br>or<br>obligations<br>due<br>to<br>bankruptcy,<br>insolvency<br>or<br>a<br>general<br>downturn<br>in<br>their<br>business<br>;<br>the<br>loss<br>or<br>failure,<br>or<br>decline<br>in<br>the<br>business<br>or<br>assets<br>of<br>PINE<br>;<br>the<br>completion<br>of<br>1031<br>exchange<br>transactions<br>;<br>the<br>availability<br>of<br>investment<br>properties<br>that<br>meet<br>the<br>Company’s<br>investment<br>goals<br>and<br>criteria<br>;<br>the<br>uncertainties<br>associated<br>with<br>obtaining<br>required<br>governmental<br>permits<br>and<br>satisfying<br>other<br>closing<br>conditions<br>for<br>planned<br>acquisitions<br>and<br>sales<br>;<br>and<br>the<br>uncertainties<br>and<br>risk<br>factors<br>discussed<br>in<br>the<br>Company’s<br>Annual<br>Report<br>on<br>Form<br>10<br>-<br>K<br>for<br>the<br>fiscal<br>year<br>ended<br>December<br>31<br>,<br>2021<br>and<br>other<br>risks<br>and<br>uncertainties<br>discussed<br>from<br>time<br>to<br>time<br>in<br>the<br>Company’s<br>filings<br>with<br>the<br>U<br>..<br>S<br>..<br>Securities<br>and<br>Exchange<br>Commission<br>..<br>There<br>can<br>be<br>no<br>assurance<br>that<br>future<br>developments<br>will<br>be<br>in<br>accordance<br>with<br>management’s<br>expectations<br>or<br>that<br>the<br>effect<br>of<br>future<br>developments<br>on<br>the<br>Company<br>will<br>be<br>those<br>anticipated<br>by<br>management<br>..<br>Readers<br>are<br>cautioned<br>not<br>to<br>place<br>undue<br>reliance<br>on<br>these<br>forward<br>-<br>looking<br>statements,<br>which<br>speak<br>only<br>as<br>of<br>the<br>date<br>of<br>this<br>presentation<br>..<br>The<br>Company<br>undertakes<br>no<br>obligation<br>to<br>update<br>the<br>information<br>contained<br>in<br>this<br>press<br>release<br>to<br>reflect<br>subsequently<br>occurring<br>events<br>or<br>circumstances<br>..<br>Non<br>-<br>GAAP<br>Financial<br>Measures<br>Our<br>reported<br>results<br>are<br>presented<br>in<br>accordance<br>with<br>accounting<br>principles<br>generally<br>accepted<br>in<br>the<br>United<br>States<br>of<br>America<br>(“GAAP”)<br>..<br>We<br>also<br>disclose<br>Funds<br>From<br>Operations<br>(“FFO”),<br>Core<br>Funds<br>From<br>Operations<br>(“Core<br>FFO”),<br>Adjusted<br>Funds<br>From<br>Operations<br>(“AFFO”),<br>Pro<br>Forma<br>Earnings<br>Before<br>Interest,<br>Taxes,<br>Depreciation<br>and<br>Amortization<br>(“Pro<br>Forma<br>EBITDA”),<br>and<br>Same<br>-<br>Property<br>Net<br>Operating<br>Income<br>(“Same<br>-<br>Property<br>NOI”),<br>each<br>of<br>which<br>are<br>non<br>-<br>GAAP<br>financial<br>measures<br>..<br>We<br>believe<br>these<br>non<br>-<br>GAAP<br>financial<br>measures<br>are<br>useful<br>to<br>investors<br>because<br>they<br>are<br>widely<br>accepted<br>industry<br>measures<br>used<br>by<br>analysts<br>and<br>investors<br>to<br>compare<br>the<br>operating<br>performance<br>of<br>REITs<br>..<br>FFO,<br>Core<br>FFO,<br>AFFO,<br>Pro<br>Forma<br>EBITDA,<br>and<br>Same<br>-<br>Property<br>NOI<br>do<br>not<br>represent<br>cash<br>generated<br>from<br>operating<br>activities<br>and<br>are<br>not<br>necessarily<br>indicative<br>of<br>cash<br>available<br>to<br>fund<br>cash<br>requirements<br>;<br>accordingly,<br>they<br>should<br>not<br>be<br>considered<br>alternatives<br>to<br>net<br>income<br>as<br>a<br>performance<br>measure<br>or<br>cash<br>flows<br>from<br>operating<br>activities<br>as<br>reported<br>on<br>our<br>statement<br>of<br>cash<br>flows<br>as<br>a<br>liquidity<br>measure<br>and<br>should<br>be<br>considered<br>in<br>addition<br>to,<br>and<br>not<br>in<br>lieu<br>of,<br>GAAP<br>financial<br>measures<br>.. 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| © CTO Realty Growth, Inc. | ctoreit.com<br>Non<br>-<br>GAAP Financial Measures<br>29<br>Non<br>-<br>GAAP<br>Financial<br>Measures<br>(continued)<br>We<br>compute<br>FFO<br>in<br>accordance<br>with<br>the<br>definition<br>adopted<br>by<br>the<br>Board<br>of<br>Governors<br>of<br>the<br>National<br>Association<br>of<br>Real<br>Estate<br>Investment<br>Trusts,<br>or<br>NAREIT<br>..<br>NAREIT<br>defines<br>FFO<br>as<br>GAAP<br>net<br>income<br>or<br>loss<br>adjusted<br>to<br>exclude<br>extraordinary<br>items<br>(as<br>defined<br>by<br>GAAP),<br>net<br>gain<br>or<br>loss<br>from<br>sales<br>of<br>depreciable<br>real<br>estate<br>assets,<br>impairment<br>write<br>-<br>downs<br>associated<br>with<br>depreciable<br>real<br>estate<br>assets<br>and<br>real<br>estate<br>related<br>depreciation<br>and<br>amortization,<br>including<br>the<br>pro<br>rata<br>share<br>of<br>such<br>adjustments<br>of<br>unconsolidated<br>subsidiaries<br>..<br>The<br>Company<br>also<br>excludes<br>the<br>gains<br>or<br>losses<br>from<br>sales<br>of<br>assets<br>incidental<br>to<br>the<br>primary<br>business<br>of<br>the<br>REIT<br>which<br>specifically<br>include<br>the<br>sales<br>of<br>mitigation<br>credits,<br>impact<br>fee<br>credits,<br>subsurface<br>sales,<br>and<br>land<br>sales,<br>in<br>addition<br>to<br>the<br>mark<br>-<br>to<br>-<br>market<br>of<br>the<br>Company’s<br>investment<br>securities<br>and<br>interest<br>related<br>to<br>the<br>2025<br>Convertible<br>Senior<br>Notes,<br>if<br>the<br>effect<br>is<br>dilutive<br>..<br>To<br>derive<br>Core<br>FFO,<br>we<br>modify<br>the<br>NAREIT<br>computation<br>of<br>FFO<br>to<br>include<br>other<br>adjustments<br>to<br>GAAP<br>net<br>income<br>related<br>to<br>gains<br>and<br>losses<br>recognized<br>on<br>the<br>extinguishment<br>of<br>debt,<br>amortization<br>of<br>above<br>-<br>and<br>below<br>-<br>market<br>lease<br>related<br>intangibles,<br>and<br>other<br>unforecastable<br>market<br>-<br>or<br>transaction<br>-<br>driven<br>non<br>-<br>cash<br>items<br>..<br>To<br>derive<br>AFFO,<br>we<br>further<br>modify<br>the<br>NAREIT<br>computation<br>of<br>FFO<br>and<br>Core<br>FFO<br>to<br>include<br>other<br>adjustments<br>to<br>GAAP<br>net<br>income<br>related<br>to<br>non<br>-<br>cash<br>revenues<br>and<br>expenses<br>such<br>as<br>straight<br>-<br>line<br>rental<br>revenue,<br>non<br>-<br>cash<br>compensation,<br>and<br>other<br>non<br>-<br>cash<br>amortization,<br>as<br>well<br>as<br>adding<br>back<br>the<br>interest<br>related<br>to<br>the<br>2025<br>Convertible<br>Senior<br>Notes,<br>if<br>the<br>effect<br>is<br>dilutive<br>..<br>Such<br>items<br>may<br>cause<br>short<br>-<br>term<br>fluctuations<br>in<br>net<br>income<br>but<br>have<br>no<br>impact<br>on<br>operating<br>cash<br>flows<br>or<br>long<br>-<br>term<br>operating<br>performance<br>..<br>We<br>use<br>AFFO<br>as<br>one<br>measure<br>of<br>our<br>performance<br>when<br>we<br>formulate<br>corporate<br>goals<br>..<br>To<br>derive<br>Pro<br>Forma<br>EBITDA,<br>GAAP<br>net<br>income<br>or<br>loss<br>is<br>adjusted<br>to<br>exclude<br>extraordinary<br>items<br>(as<br>defined<br>by<br>GAAP),<br>net<br>gain<br>or<br>loss<br>from<br>sales<br>of<br>depreciable<br>real<br>estate<br>assets,<br>impairment<br>write<br>-<br>downs<br>associated<br>with<br>depreciable<br>real<br>estate<br>assets<br>and<br>real<br>estate<br>related<br>depreciation<br>and<br>amortization,<br>including<br>the<br>pro<br>rata<br>share<br>of<br>such<br>adjustments<br>of<br>unconsolidated<br>subsidiaries,<br>non<br>-<br>cash<br>revenues<br>and<br>expenses<br>such<br>as<br>straight<br>-<br>line<br>rental<br>revenue,<br>amortization<br>of<br>deferred<br>financing<br>costs,<br>above<br>-<br>and<br>below<br>-<br>market<br>lease<br>related<br>intangibles,<br>non<br>-<br>cash<br>compensation,<br>and<br>other<br>non<br>-<br>cash<br>income<br>or<br>expense<br>..<br>Cash<br>interest<br>expense<br>is<br>also<br>excluded<br>from<br>Pro<br>Forma<br>EBITDA,<br>and<br>GAAP<br>net<br>income<br>or<br>loss<br>is<br>adjusted<br>for<br>the<br>annualized<br>impact<br>of<br>acquisitions,<br>dispositions<br>and<br>other<br>similar<br>activities<br>..<br>To<br>derive<br>Same<br>-<br>Property<br>NOI,<br>GAAP<br>net<br>income<br>or<br>loss<br>attributable<br>to<br>the<br>Company<br>is<br>adjusted<br>to<br>exclude<br>extraordinary<br>items<br>(as<br>defined<br>by<br>GAAP),<br>gain<br>or<br>loss<br>on<br>disposition<br>of<br>assets,<br>gain<br>or<br>loss<br>on<br>extinguishment<br>of<br>debt,<br>impairment<br>charges,<br>and<br>depreciation<br>and<br>amortization,<br>including<br>the<br>pro<br>rata<br>share<br>of<br>such<br>adjustments<br>of<br>unconsolidated<br>subsidiaries,<br>if<br>any,<br>non<br>-<br>cash<br>revenues<br>and<br>expenses<br>such<br>as<br>above<br>-<br>and<br>below<br>-<br>market<br>lease<br>related<br>intangibles,<br>straight<br>-<br>line<br>rental<br>revenue,<br>and<br>other<br>non<br>-<br>cash<br>income<br>or<br>expense<br>..<br>Interest<br>expense,<br>general<br>and<br>administrative<br>expenses,<br>investment<br>and<br>other<br>income<br>or<br>loss,<br>income<br>tax<br>benefit<br>or<br>expense,<br>real<br>estate<br>operations<br>revenues<br>and<br>direct<br>cost<br>of<br>revenues,<br>management<br>fee<br>income,<br>and<br>interest<br>income<br>from<br>commercial<br>loan<br>and<br>master<br>lease<br>investments<br>are<br>also<br>excluded<br>from<br>Same<br>-<br>Property<br>NOI<br>..<br>GAAP<br>net<br>income<br>or<br>loss<br>is<br>further<br>adjusted<br>to<br>remove<br>the<br>impact<br>of<br>properties<br>that<br>were<br>not<br>owned<br>for<br>the<br>full<br>current<br>and<br>prior<br>year<br>reporting<br>periods<br>presented<br>..<br>Cash<br>rental<br>income<br>received<br>under<br>the<br>leases<br>pertaining<br>to<br>the<br>Company’s<br>assets<br>that<br>are<br>presented<br>as<br>commercial<br>loan<br>and<br>master<br>lease<br>investments<br>in<br>accordance<br>with<br>GAAP<br>is<br>also<br>used<br>in<br>lieu<br>of<br>the<br>interest<br>income<br>equivalent<br>..<br>FFO<br>is<br>used<br>by<br>management,<br>investors<br>and<br>analysts<br>to<br>facilitate<br>meaningful<br>comparisons<br>of<br>operating<br>performance<br>between<br>periods<br>and<br>among<br>our<br>peers<br>primarily<br>because<br>it<br>excludes<br>the<br>effect<br>of<br>real<br>estate<br>depreciation<br>and<br>amortization<br>and<br>net<br>gains<br>or<br>losses<br>on<br>sales,<br>which<br>are<br>based<br>on<br>historical<br>costs<br>and<br>implicitly<br>assume<br>that<br>the<br>value<br>of<br>real<br>estate<br>diminishes<br>predictably<br>over<br>time,<br>rather<br>than<br>fluctuating<br>based<br>on<br>existing<br>market<br>conditions<br>..<br>We<br>believe<br>that<br>Core<br>FFO<br>and<br>AFFO<br>are<br>additional<br>useful<br>supplemental<br>measures<br>for<br>investors<br>to<br>consider<br>because<br>they<br>will<br>help<br>them<br>to<br>better<br>assess<br>our<br>operating<br>performance<br>without<br>the<br>distortions<br>created<br>by<br>other<br>non<br>-<br>cash<br>revenues<br>or<br>expenses<br>..<br>We<br>also<br>believe<br>that<br>Pro<br>Forma<br>EBITDA<br>is<br>an<br>additional<br>useful<br>supplemental<br>measure<br>for<br>investors<br>to<br>consider<br>as<br>it<br>allows<br>for<br>a<br>better<br>assessment<br>of<br>our<br>operating<br>performance<br>without<br>the<br>distortions<br>created<br>by<br>other<br>non<br>-<br>cash<br>revenues,<br>expenses<br>or<br>certain<br>effects<br>of<br>the<br>Company’s<br>capital<br>structure<br>on<br>our<br>operating<br>performance<br>..<br>We<br>use<br>Same<br>-<br>Property<br>NOI<br>to<br>compare<br>the<br>operating<br>performance<br>of<br>our<br>assets<br>between<br>periods<br>..<br>It<br>is<br>an<br>accepted<br>and<br>important<br>measurement<br>used<br>by<br>management,<br>investors<br>and<br>analysts<br>because<br>it<br>includes<br>all<br>property<br>-<br>level<br>revenues<br>from<br>of<br>the<br>Company’s<br>rental<br>properties,<br>less<br>operating<br>and<br>maintenance<br>expenses,<br>real<br>estate<br>taxes<br>and<br>other<br>property<br>-<br>specific<br>expenses<br>(“Net<br>Operating<br>Income”<br>or<br>“NOI”)<br>of<br>properties<br>that<br>have<br>been<br>owned<br>and<br>stabilized<br>for<br>the<br>entire<br>current<br>and<br>prior<br>year<br>reporting<br>periods<br>..<br>Same<br>-<br>Property<br>NOI<br>attempts<br>to<br>eliminate<br>differences<br>due<br>to<br>the<br>acquisition<br>or<br>disposition<br>of<br>properties<br>during<br>the<br>particular<br>period<br>presented,<br>and<br>therefore<br>provides<br>a<br>more<br>comparable<br>and<br>consistent<br>performance<br>measure<br>for<br>the<br>comparison<br>of<br>the<br>Company's<br>properties<br>..<br>FFO,<br>Core<br>FFO,<br>AFFO,<br>Pro<br>Forma<br>EBITDA,<br>and<br>Same<br>-<br>Property<br>NOI<br>may<br>not<br>be<br>comparable<br>to<br>similarly<br>titled<br>measures<br>employed<br>by<br>other<br>companies<br>.. 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| © CTO Realty Growth, Inc. | ctoreit.com<br>References & Contacts<br>30<br>References<br>and<br>terms<br>used<br>in<br>this<br>presentation<br>that<br>are<br>in<br>addition<br>to<br>terms<br>defined<br>in<br>the<br>Non<br>-<br>GAAP<br>Financial<br>Measures<br>include<br>:<br>▪<br>This<br>presentation<br>has<br>been<br>published<br>on<br>October<br>27<br>,<br>2022<br>..<br>▪<br>All<br>information<br>is<br>as<br>of<br>September<br>30<br>,<br>2022<br>,<br>unless<br>otherwise<br>noted<br>..<br>▪<br>Any<br>calculation<br>differences<br>are<br>assumed<br>to<br>be<br>a<br>result<br>of<br>rounding<br>..<br>▪<br>“<br>2022<br>Guidance”<br>is<br>based<br>on<br>the<br>2022<br>Outlook<br>provided<br>in<br>the<br>Company’s<br>Third<br>Quarter<br>2022<br>Operating<br>Results<br>press<br>release<br>filed<br>on<br>October<br>27<br>,<br>2022<br>..<br>▪<br>“Alpine”<br>or<br>“PINE”<br>refers<br>to<br>Alpine<br>Income<br>Property<br>Trust,<br>a<br>publicly<br>traded<br>net<br>lease<br>REIT<br>traded<br>on<br>the<br>New<br>York<br>Stock<br>Exchange<br>under<br>the<br>ticker<br>symbol<br>PINE<br>..<br>▪<br>“Annualized<br>Straight<br>-<br>line<br>Base<br>Rent”,<br>“ABR”<br>or<br>“Rent”<br>and<br>the<br>statistics<br>based<br>on<br>ABR<br>are<br>calculated<br>based<br>on<br>our<br>current<br>portfolio<br>and<br>represent<br>straight<br>-<br>line<br>rent<br>calculated<br>in<br>accordance<br>with<br>GAAP<br>..<br>▪<br>“<br>2022<br>Net<br>Operating<br>Income”<br>or<br>“<br>2022<br>NOI”<br>is<br>budgeted<br>2022<br>property<br>-<br>level<br>net<br>operating<br>income<br>based<br>on<br>the<br>Company’s<br>portfolio<br>as<br>of<br>October<br>20<br>,<br>2022<br>..<br>▪<br>“Credit<br>Rated”<br>is<br>a<br>tenant<br>or<br>the<br>parent<br>of<br>a<br>tenant<br>with<br>a<br>credit<br>rating<br>from<br>S&P<br>Global<br>Ratings,<br>Moody’s<br>Investors<br>Service,<br>Fitch<br>Ratings<br>or<br>the<br>National<br>Associated<br>of<br>Insurance<br>Commissioners<br>(NAIC)<br>(together,<br>the<br>“Major<br>Rating<br>Agencies”)<br>..<br>An<br>“Investment<br>Grade<br>Rated<br>Tenant”<br>or<br>“IG”<br>references<br>a<br>Credit<br>Rated<br>tenant<br>or<br>the<br>parent<br>of<br>a<br>tenant,<br>or<br>credit<br>rating<br>thereof<br>with<br>a<br>rating<br>of<br>BBB<br>-<br>,<br>Baa<br>3<br>or<br>NAIC<br>-<br>2<br>or<br>higher<br>from<br>one<br>or<br>more<br>of<br>the<br>Major<br>Rating<br>Agencies<br>..<br>▪<br>“Contractual<br>Base<br>Rent”<br>or<br>“CBR”<br>represents<br>the<br>amount<br>owed<br>to<br>the<br>Company<br>under<br>the<br>terms<br>of<br>its<br>lease<br>agreements<br>at<br>the<br>time<br>referenced<br>..<br>▪<br>“Dividend”<br>or<br>“Dividends”,<br>subject<br>to<br>the<br>required<br>dividends<br>to<br>maintain<br>our<br>qualification<br>as<br>a<br>REIT,<br>are<br>set<br>by<br>the<br>Board<br>of<br>Directors<br>and<br>declared<br>on<br>a<br>quarterly<br>basis<br>and<br>there<br>can<br>be<br>no<br>assurances<br>as<br>to<br>the<br>likelihood<br>or<br>number<br>of<br>dividends<br>in<br>the<br>future<br>..<br>▪<br>“Investment<br>in<br>Alpine<br>Income<br>Property<br>Trust”<br>or<br>“Alpine<br>Investment”<br>or<br>“PINE<br>Ownership”<br>is<br>calculated<br>based<br>on<br>the<br>2<br>,<br>173<br>,<br>865<br>common<br>shares<br>and<br>partnership<br>units<br>CTO<br>owns<br>in<br>PINE<br>and<br>is<br>based<br>on<br>PINE’s<br>closing<br>stock<br>price<br>..<br>▪<br>“Leased<br>Occupancy”<br>refers<br>to<br>space<br>that<br>is<br>currently<br>leased<br>but<br>for<br>which<br>rent<br>payments<br>have<br>not<br>yet<br>commenced<br>..<br>▪<br>“MSA”<br>or<br>“Metropolitan<br>Statistical<br>Area”<br>is<br>a<br>region<br>that<br>consists<br>of<br>a<br>city<br>and<br>surrounding<br>communities<br>that<br>are<br>linked<br>by<br>social<br>and<br>economic<br>factors,<br>as<br>established<br>by<br>the<br>U<br>..<br>S<br>..<br>Office<br>of<br>Management<br>and<br>Budget<br>..<br>The<br>names<br>of<br>the<br>MSA<br>have<br>been<br>shortened<br>for<br>ease<br>of<br>reference<br>..<br>▪<br>“Net<br>Debt”<br>is<br>calculated<br>as<br>our<br>total<br>long<br>-<br>term<br>debt<br>as<br>presented<br>on<br>the<br>face<br>of<br>our<br>balance<br>sheet<br>;<br>plus<br>financing<br>costs,<br>net<br>of<br>accumulated<br>amortization<br>and<br>unamortized<br>convertible<br>debt<br>discount<br>;<br>less<br>cash,<br>restricted<br>cash<br>and<br>cash<br>equivalents<br>..<br>▪<br>“Net<br>Operating<br>Income”<br>or<br>“NOI”<br>is<br>revenues<br>from<br>all<br>income<br>properties<br>less<br>operating<br>expense,<br>maintenance<br>expense,<br>real<br>estate<br>taxes<br>and<br>rent<br>expense<br>..<br>▪<br>“Total<br>Enterprise<br>Value”<br>is<br>calculated<br>as<br>the<br>Company’s<br>Total<br>Common<br>Shares<br>Outstanding<br>multiplied<br>by<br>the<br>common<br>stock<br>price<br>;<br>plus<br>the<br>par<br>value<br>of<br>the<br>Series<br>A<br>perpetual<br>preferred<br>equity<br>outstanding<br>and<br>Net<br>Debt<br>..<br>▪<br>“Total<br>Common<br>Shares<br>Outstanding”<br>equaled<br>18<br>,<br>800<br>,<br>010<br>shares<br>..<br>Investor<br>Inquiries<br>:<br>Matthew<br>M<br>..<br>Partridge<br>Senior<br>Vice<br>President,<br>Chief<br>Financial<br>Officer<br>and<br>Treasurer<br>(<br>407<br>)<br>904<br>-<br>3324<br>mpartridge@ctoreit<br>..<br>com |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Consolidated Statements of Operations<br>31<br>CTO Realty Growth, Inc.<br>Consolidated Statements of Operations<br>(Unaudited, in thousands, except share, per share and dividend data)<br>Three<br>Months<br>Ended<br>Nine Months Ended<br>September<br>30,<br>2022<br>September<br>30,<br>2021<br>September<br>30,<br>2022<br>September<br>30,<br>2021<br>Revenues<br>Income Properties<br>$<br>17,694<br>$<br>13,734<br>$<br>49,229<br>$<br>36,757<br>Management Fee Income<br>951<br>940<br>2,835<br>2,361<br>Interest Income From Commercial Loans and Investments<br>1,323<br>726<br>3,331<br>2,136<br>Real Estate Operations<br>3,149<br>1,177<br>4,395<br>4,318<br>Total Revenues<br>23,117<br>16,577<br>59,790<br>45,572<br>Direct Cost of Revenues<br>Income Properties<br>(5,115)<br>(3,984)<br>(13,943)<br>(9,688)<br>Real Estate Operations<br>(1,661)<br>(252)<br>(1,940)<br>(867)<br>Total Direct Cost of Revenues<br>(6,776)<br>(4,236)<br>(15,883)<br>(10,555)<br>General and Administrative Expenses<br>(3,253)<br>(2,680)<br>(8,972)<br>(8,477)<br>Impairment Charges<br>−<br>−<br>−<br>(16,527)<br>Depreciation and Amortization<br>(7,305)<br>(5,567)<br>(20,401)<br>(15,428)<br>Total Operating Expenses<br>(17,334)<br>(12,483)<br>(45,256)<br>(50,987)<br>Gain on Disposition of Assets<br>4,973<br>22,666<br>4,728<br>28,106<br>Loss on Extinguishment of Debt<br>−<br>−<br>−<br>(641)<br>Other Gains and Income<br>4,973<br>22,666<br>4,728<br>27,465<br>Total Operating Income<br>10,756<br>26,760<br>19,262<br>22,050<br>Investment and Other Income (Loss)<br>(3,065)<br>(797)<br>(6,270)<br>8,438<br>Interest Expense<br>(3,037)<br>(1,986)<br>(7,216)<br>(6,851)<br>Income Before Income Tax Benefit (Expense)<br>4,654<br>23,977<br>5,776<br>23,637<br>Income Tax Benefit (Expense)<br>163<br>(30)<br>461<br>4,371<br>Net Income Attributable to the Company<br>4,817<br>23,947<br>6,237<br>28,008<br>Distributions to Preferred Stockholders<br>(1,195)<br>(1,129)<br>(3,586)<br>(1,129)<br>Net Income Attributable to Common Stockholders<br>$<br>3,622<br>$<br>22,818<br>$<br>2,651<br>$<br>26,879<br>Earnings Per Share:<br>Basic<br>$<br>0.20<br>$<br>1.29<br>$<br>0.15<br>$<br>1.52<br>Diluted<br>$<br>0.19<br>$<br>1.29<br>$<br>0.15<br>$<br>1.52<br>Weighted Average Number of Common Shares<br>Basic<br>18,386,435<br>17,703,284<br>18,044,299<br>17,678,701<br>Diluted<br>21,505,460<br>17,703,284<br>18,044,299<br>17,678,701 |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Same<br>-<br>Property NOI<br>32<br>Three<br>Months<br>Ended<br>September 30, 2022<br>September 30, 2021<br>Net Income Attributable to the Company<br>$<br>4,817<br>$<br>23,947<br>Gain on Disposition of Assets<br>(4,973)<br>(22,666)<br>Depreciation and Amortization per Income Statement<br>7,305<br>5,567<br>Amortization of Intangibles to Lease Income<br>(507)<br>86<br>Straight<br>-<br>Line Rent Adjustment<br>600<br>669<br>COVID<br>-<br>19 Rent Deferrals<br>(26)<br>(84)<br>Accretion of Tenant Contribution<br>38<br>38<br>Interest Expense<br>3,037<br>1,986<br>General and Administrative Expenses<br>3,253<br>2,680<br>Investment and Other Loss (Income)<br>3,065<br>797<br>Income Tax Benefit (Expense)<br>(163)<br>30<br>Real Estate Operations Revenues<br>(3,149)<br>(1,177)<br>Real Estate Operations Direct Cost of Revenues<br>1,661<br>252<br>Management Fee Income<br>(951)<br>(940)<br>Interest Income from Commercial Loans and Investments<br>(1,323)<br>(726)<br>Less: Impact of Properties Not Owned for the Full Reporting Period<br>(4,219)<br>(2,898)<br>Same<br>-<br>Property NOI<br>$<br>8,465<br>$<br>7,561<br>Year<br>-<br>Over<br>-<br>Year Growth<br>12.0%<br>CTO Realty Growth, Inc.<br>Same<br>-<br>Property NOI Reconciliation<br>(Unaudited, in thousands) |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Non<br>-<br>GAAP Financial Measures<br>33<br>Three<br>Months<br>Ended<br>Nine<br>Months<br>Ended<br>September 30,<br>2022<br>September 30,<br>2021<br>September 30,<br>2022<br>September 30,<br>2021<br>Net Income Attributable to the Company<br>$<br>4,817<br>$<br>23,947<br>$<br>6,237<br>$<br>28,008<br>Add Back: Effect of Dilutive Interest Related to 2025 Convertible Senior Notes<br>(1)<br>539<br>—<br>—<br>—<br>Net Income Attributable to the Company, If<br>-<br>Converted<br>$<br>5,356<br>$<br>23,947<br>$<br>6,237<br>$<br>28,008<br>Depreciation and Amortization<br>7,283<br>5,567<br>20,359<br>15,428<br>Gains (Loss) on Disposition of Assets<br>(4,973)<br>(22,666)<br>(4,728)<br>(28,106)<br>Gain on Disposition of Other Assets<br>(1,509)<br>(974)<br>(2,473)<br>(3,549)<br>Impairment Charges, Net<br>—<br>—<br>—<br>12,474<br>Unrealized (Gain) Loss on Investment Securities<br>3,754<br>1,326<br>8,102<br>(6,894)<br>Funds from Operations<br>$<br>9,911<br>$<br>7,200<br>$<br>27,497<br>$<br>17,361<br>Distributions to Preferred Stockholders<br>(1,195)<br>(1,129)<br>(3,586)<br>(1,129)<br>Funds from Operations Attributable to Common Stockholders<br>$<br>8,716<br>$<br>6,071<br>$<br>23,911<br>$<br>16,232<br>Loss on Extinguishment of Debt<br>—<br>—<br>—<br>641<br>Amortization of Intangibles to Lease Income<br>507<br>(86)<br>1,485<br>(820)<br>Less: Effect of Dilutive Interest Related to 2025 Convertible Senior Notes<br>(1)<br>(539)<br>—<br>—<br>—<br>Core Funds from Operations Attributable to Common Stockholders<br>$<br>8,684<br>$<br>5,985<br>$<br>25,396<br>$<br>16,053<br>Adjustments:<br>Straight<br>-<br>Line Rent Adjustment<br>(600)<br>(669)<br>(1,645)<br>(1,844)<br>COVID<br>-<br>19 Rent Repayments<br>26<br>84<br>79<br>738<br>Other Depreciation and Amortization<br>(29)<br>(154)<br>(199)<br>(528)<br>Amortization of Loan Costs and Discount on Convertible Debt<br>64<br>442<br>510<br>1,395<br>Non<br>-<br>Cash Compensation<br>812<br>734<br>2,423<br>2,434<br>Non<br>-<br>Recurring G&A<br>—<br>—<br>—<br>155<br>Adjusted Funds from Operations Attributable to Common Stockholders<br>$<br>8,957<br>$<br>6,422<br>$<br>26,564<br>$<br>18,403<br>FFO Attributable to Common Stockholders per Common Share<br>–<br>Diluted<br>$<br>0.41<br>$<br>0.34<br>$<br>1.33<br>$<br>0.92<br>Core FFO Attributable to Common Stockholders per Common Share<br>–<br>Diluted<br>$<br>0.47<br>$<br>0.34<br>$<br>1.41<br>$<br>0.91<br>AFFO Attributable to Common Stockholders per Common Share<br>–<br>Diluted<br>$<br>0.49<br>$<br>0.36<br>$<br>1.47<br>$<br>1.04<br>CTO Realty Growth, Inc.<br>Non<br>-<br>GAAP Financial Measures<br>(Unaudited, in thousands, except per share data)<br>(1)<br>A total of 3.1 million shares representing the dilutive impact of the 2025 Notes, upon adoption of ASU 2020<br>-<br>06 effective January<br>1, 2022, were included in the computation of diluted net income per share attributable to common stockholders for the three m<br>on<br>ths ended September 30, 2022. A total of<br>3.1 million shares representing the dilutive impact of the 2025 Notes, were not included in the computation of diluted net in<br>com<br>e per share attributable to common stockholders for the nine months ended September 30, 2022 because they were antidilutive t<br>o t<br>he net income of under $2.6 million. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Net Debt to Pro Forma EBITDA<br>34<br>CTO Realty Growth, Inc.<br>Reconciliation of Net Debt to Pro Forma EBITDA<br>(Unaudited, in thousands)<br>Three Months Ended<br>September 30, 2022<br>Net Income Attributable to the Company<br>$<br>4,817<br>Depreciation and Amortization<br>7,283<br>Gain on Disposition Assets<br>(4,973)<br>Gain on Disposition of Other Assets<br>(1,509)<br>Unrealized Loss on Investment Securities<br>3,754<br>Distributions to Preferred Stockholders<br>(1,195)<br>Straight<br>-<br>Line Rent Adjustment<br>(600)<br>Amortization of Intangibles to Lease Income<br>507<br>Other Depreciation and Amortization<br>(29)<br>Amortization of Loan Costs and Discount on Convertible Debt<br>64<br>Non<br>-<br>Cash Compensation<br>812<br>Interest Expense, Net of Amortization of Loan Costs and Discount on Convertible Debt<br>2,819<br>EBITDA<br>$<br>11,750<br>Annualized EBITDA<br>$<br>47,000<br>Pro Forma Annualized Impact of Current Quarter Acquisitions and Dispositions, Net<br>(1)<br>3,834<br>Pro Forma EBITDA<br>$<br>50,834<br>Total Long<br>-<br>Term Debt<br>370,248<br>Financing Costs, Net of Accumulated Amortization<br>1,682<br>Unamortized Convertible Debt Discount<br>404<br>Cash & Cash Equivalents<br>(9,532)<br>Restricted Cash<br>(37,292)<br>Net Debt<br>$<br>325,510<br>Net Debt to Pro Forma EBITDA<br>6.4x<br>(1)<br>Reflects the pro forma annualized impact on Annualized EBITDA of the Company’s acquisition and disposition activity during th<br>e t<br>hree months ended September 30, 2022. |
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| REALTY GROWTH<br>The Strand at St. John’s Town Center<br>Jacksonville, FL | |
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Exhibit 99.3
| © CTO Realty Growth, Inc. | ctoreit.com<br>REALTY GROWTH<br>Supplemental Reporting Information<br>Q3 2022<br>Madison Yards<br>Atlanta, GA | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>1.<br>Third Quarter 2022 Earnings Release<br>3<br>2.<br>Key Financial Information<br>▪<br>Consolidated Balance Sheets<br>12<br>▪<br>Consolidated Statements of Operations<br>13<br>▪<br>Non<br>-<br>GAAP Financial Measures<br>14<br>3.<br>Capitalization & Dividends<br>17<br>4.<br>Summary of Debt<br>18<br>5.<br>Investments<br>19<br>6.<br>Dispositions<br>20<br>7.<br>Portfolio Detail<br>21<br>8.<br>Leasing Summary<br>23<br>9.<br>Lease Expirations<br>24<br>10.<br>Top Tenant Summary<br>25<br>11.<br>Geographic Diversification<br>26<br>12.<br>Other Assets<br>27<br>13.<br>2022 Guidance<br>28<br>14.<br>Contact Information & Research Coverage<br>29<br>15.<br>Safe Harbor, Non<br>-<br>GAAP Financial Measures, and Definitions and Terms<br>30<br>Table of Contents | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>3<br><br><br><br>Press Release<br><br><br>Contact:<br><br>Matthew M. Partridge<br><br>Senior Vice President<br>,<br>Chief Financial Officer<br><br>and Treasurer<br><br>(407) 904<br>-<br>3324<br><br>mpartridge@ctoreit.com<br><br><br><br>FOR<br><br>IMMEDIATE<br><br>RELEASE<br><br><br>CTO<br><br>R<br>EALTY<br>G<br>ROWTH<br>R<br>EPORTS<br><br><br>T<br>HIRD<br>Q<br>UARTER<br>202<br>2<br><br>O<br>PERATING<br>R<br>ESULTS<br><br>WINTER PARK<br>, FL<br>–<br><br>October<br><br>2<br>7<br>,<br><br>20<br>2<br>2<br><br>–<br><br>CTO Realty<br><br>Growth, Inc.<br><br>(NYSE: CTO) (the “Company”<br><br>or<br><br>“CTO”<br>)<br>today announced its operating results and earnings for the quarter<br>ended<br><br>September<br><br>30<br>, 202<br>2<br>..<br><br><br>Select Highlights<br><br><br>▪<br><br>Reported Net<br>Income<br><br>per diluted share<br><br>attributable to common stockholders of<br><br>$0.<br>19<br><br>for the quarter ended<br>September<br><br>30<br>, 202<br>2<br>..<br><br><br>▪<br><br>Reported<br><br>Core<br><br>FFO per diluted share<br>attributable to common stockholders<br>of $<br>0.4<br>7<br><br>for the quarter ended<br>September<br><br>30, 2022, an increase of<br>38.2<br>% from the comparable prior year period.<br><br><br>▪<br><br>Reported<br>AFFO<br>per diluted share<br>attributable to common stockholders<br>of<br>$<br>0.4<br>9<br><br>for the quarter ended<br>September<br><br>30,<br><br>202<br>2<br>, an increase of<br>36.<br>1<br>% from the comparable prior year period<br>..<br><br>▪<br><br>A<br>cquired Madison Yards, a newly built, grocery<br>-<br>anchored retail property located in Atlanta, Georgia for a<br>purchase price of $80.2 million. The purchase price represents a going<br>-<br>in cap rate below the range of the<br>Company’s prior guidance for initial cash yields.<br><br>▪<br><br>Sold two single tenant<br>retail<br><br>properties<br>, the Company’s sole remaining multi<br>-<br>tenant office property<br>and one<br>multi<br>-<br>tenant retail property<br><br>for total disposition volume of $<br>57<br>..0 million at a weighted average exit cap rate of<br>6.<br>3<br>%<br>, generating total gains of $<br>5.0<br><br>million<br>..<br><br>▪<br><br>Reported a<br>12.0<br>% increase in Same<br>-<br>Property NOI during the quarter ended<br>September<br><br>30, 2022, as compared<br>to the comparable prior year period<br>..<br><br>▪<br><br>Expanded revolving credit facility from $<br>210<br><br>million to $<br>30<br>0 million<br>,<br>extended the<br>revolving credit facility<br>’s<br><br>maturity date to Ja<br>nuary 2027<br>, and entered into a<br>new<br><br>fixed<br>-<br>rate<br><br>$100 million unsecured term loan<br><br>with a<br>maturity date of January 2028<br>..<br><br>▪<br><br>Paid a $0.<br>38<br><br>per share common stock cash dividend for the third quarter of 2022, which represented a<br>14.0<br>%<br>increase from the comparable pri<br>or year period quarterly common stock cash dividend and an annualized yield<br>of<br>7<br>..<br>6<br>% based on the closing price of the Company’s common stock on October<br>26<br>, 2022.<br><br>▪<br><br>On<br>October<br><br>1<br>4<br>, 2022, the Company acquired<br>West Broad Village<br>,<br>a m<br>ixed<br>-<br>u<br>se,<br>g<br>rocery<br>-<br>a<br>nchored<br>l<br>ifestyle<br>p<br>roperty in Richmond, Virginia<br><br>for a purchase price of $<br>93.9<br><br>million. The purchase price represents a going<br>-<br>in<br>cap rate<br>above<br><br>the range of the Company’s<br>prior<br>guidance for initial cash yields. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>4<br>CEO Comments<br><br><br><br>“<br>We<br>’ve<br><br>had a<br>very<br>strong<br>few months<br>of<br>asset<br><br>recyclin<br>g<br><br>as we continue to make good progress refining our high<br>-<br>quality,<br>retail<br>-<br>focused portfolio.<br>Our newly built<br><br>grocery<br>-<br>anchored<br><br>Madison Yards<br>(Publix)<br>asset<br>in Atlanta,<br>Georgia,<br><br>and<br>our<br>grocery<br>-<br>anchored<br>West Broad Village<br><br>(W<br>hole Foods)<br><br>property<br>in Richmond, Virginia<br><br>are excellent additions as we<br>continue to add exposure to well<br>-<br>performing markets and attractive demographics<br>,”<br>said John P. Albright, President<br>and Chief Executive Officer of CTO Realty Growth. “<br>These new<br>grocery<br>-<br>anchored<br>acquisitions, combined with our<br>7<br>..<br>6<br>% current dividend yield,<br>accretive dispositions,<br>21.5<br>%<br>year<br>-<br>to<br>-<br>date<br>same<br>-<br>store NOI growth,<br>strong leasing activity,<br>newly expanded credit facility and fixed<br>-<br>rate term loan<br><br>have us well<br>-<br>positioned<br><br>to drive<br>attractive risk<br>-<br>adjusted cash<br>flows<br><br>for our shareholders<br>..<br><br>As we look forward into 2023,<br>we’re confident<br>our shadow disposition pipeline of single<br>tenant office properties and more than $200 million of<br>available liquidity<br><br>gives us ample capacity to be oppor<br>tunistic in<br>the quickly evolving transaction market.<br>”<br><br><br>Quarterly<br>Financial Results Highlights<br><br><br>The table<br>s<br><br>below<br>provide<br><br>a summary of the Company’s operating results for the<br>three<br><br>months ended<br>September<br><br>30<br>,<br>202<br>2<br>:<br><br><br>(in thousands, except per share data)<br><br>For the Three<br><br>Months Ended<br><br>September<br><br>3<br>0<br>, 2022<br><br><br><br>For the Three<br><br>Months Ended<br><br>September<br><br>3<br>0<br>, 202<br>1<br><br><br>Variance to Comparable<br>Period in the Prior Year<br><br>Net Income Attributable to the Company<br><br><br>$<br><br>4,817<br><br><br>$<br><br>23,94<br>7<br><br><br>$<br><br>(1<br>9,<br>130<br>)<br><br>(7<br>9.9<br>%<br>)<br><br>Net Income Attributable to Common Stockholders<br><br><br>$<br><br>3,<br>622<br><br><br>$<br><br>22,81<br>8<br><br><br>$<br><br>(1<br>9,196<br>)<br><br>(8<br>4.1<br>%<br>)<br><br>Net Income per Diluted Share Attributable to<br>Common Stockholders<br><br>(1)<br><br>$<br><br>0.<br>19<br><br><br>$<br><br>1.29<br><br><br>$<br><br>(1.<br>10<br>)<br><br>(8<br>5.<br>3<br>%<br>)<br><br><br><br><br><br><br><br><br><br><br><br>Core FFO<br>Attributable to Common<br>Stockholders<br><br>(<br>2<br>)<br><br>$<br><br>8,<br>684<br><br><br>$<br><br>5,985<br><br><br>$<br><br>2,6<br>99<br><br>4<br>5.1<br>%<br><br>Core FFO per Common Share<br>–<br><br>Diluted<br><br>(<br>2<br>)<br><br>$<br><br>0.4<br>7<br><br><br>$<br><br>0.34<br><br><br>$<br><br>0.<br>13<br><br>38.2<br>%<br><br><br><br><br><br><br><br><br><br><br><br>AFFO<br>Attributable to Common Stockholders<br><br>(<br>2<br>)<br><br>$<br><br>8,<br>9<br>57<br><br><br>$<br><br>6,<br>422<br><br><br>$<br><br>2,<br>5<br>35<br><br>39<br>..<br>5<br>%<br><br>AFFO per Common Share<br>–<br><br>Diluted<br><br>(<br>2<br>)<br><br>$<br><br>0.4<br>9<br><br><br>$<br><br>0.36<br><br><br>$<br><br>0.<br>13<br><br>36.1<br>%<br><br><br><br><br><br><br><br><br><br><br><br>Dividends Declared and Paid, per Preferred Share<br><br>$<br><br>0.40<br><br><br>$<br><br>0.38<br><br><br>$<br><br>0.<br>02<br><br>5.9<br>%<br><br>Dividends Declared and Paid, per Common Share<br><br>$<br><br>0.38<br><br><br>$<br><br>0.33<br><br><br>$<br><br>0.05<br><br>14.0%<br><br>(1)<br><br>The denominator for<br>this<br><br>measure<br><br>in 2022<br><br>includes<br><br>the impact of<br>3<br>..<br>1<br><br>million<br><br>shares related to the Company’s adoption of ASU 2020<br>-<br>06,<br>effective January 1, 2022, which requires presentation on an if<br>-<br>converted basis for its 2025 Convertible Senior Notes<br>, as the impact<br>for the<br>quarter ended September 30, 202<br>2 was<br>dilutive.<br><br><br>(<br>2<br>)<br><br>See the “Non<br>-<br>GAAP Financial Measures” section and tables at the end of this press release for a discussion and reconciliation of Net Incom<br>e<br>(Loss)<br>Attributable to the Company to non<br>-<br>GAAP financial measures, including FFO Attributable t<br>o Common Stockholders, FFO per<br>Common Share<br>-<br><br>Diluted, Core FFO Attributable to Common Stockholders, Core FFO per Common Share<br>–<br><br>Diluted, AFFO Attributable to<br>Common Stockholders and AFFO per Common Share<br>-<br><br>Diluted.<br><br><br><br>Year<br>-<br>to<br>-<br>Date Financial<br><br>Results Highlights<br><br><br>The tables below<br>provide<br><br>a summary of the Company’s operating results<br>for the<br>nine<br><br>months ended<br>September<br><br>30,<br>2022:<br><br><br>(in thousands, except per share data)<br><br>For the<br>Nine<br><br>Months Ended<br><br>September<br><br>3<br>0<br>, 2022<br><br><br><br>For the<br>Nine<br><br>Months Ended<br><br>September<br><br>3<br>0<br>, 202<br>1<br><br><br>Variance to Comparable<br>Period in the Prior Year<br><br>Net Income Attributable to the Company<br><br><br>$<br><br>6,<br>237<br><br><br>$<br><br>28,008<br><br><br>$<br><br>(21,<br>771<br>)<br><br>(7<br>7.7<br>%)<br><br>Net Income Attributable to Common Stockholders<br><br><br>$<br><br>2,<br>651<br><br><br>$<br><br>26,879<br><br><br>$<br><br>(2<br>4,228<br>)<br><br>(<br>90.1<br>%) |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>5<br>Net Income per<br>Diluted Share Attributable to<br>Common Stockholders<br><br>(1)<br><br>$<br><br>0.<br>15<br><br><br>$<br><br>1.52<br><br><br>$<br><br>(<br>1.3<br>7<br>)<br><br>(<br>90.<br>1<br>%)<br><br><br><br><br><br><br><br><br><br><br><br>Core FFO<br>Attributable to Common Stockholders<br><br>(<br>2<br>)<br><br>$<br><br>2<br>5,396<br><br><br>$<br><br>16,<br>053<br><br><br>$<br><br>9,343<br><br>58.2<br>%<br><br>Core FFO per Common Share<br>–<br><br>Diluted<br><br>(<br>2<br>)<br><br>$<br><br>1.<br>41<br><br><br>$<br><br>0.91<br><br><br>$<br><br>0.<br>50<br><br>54.9<br>%<br><br><br><br><br><br><br><br><br><br><br><br>AFFO<br>Attributable to Common Stockholders<br><br>(<br>2<br>)<br><br>$<br><br>26,<br>5<br>64<br><br><br>$<br><br>18,403<br><br><br>$<br><br>8,<br>1<br>61<br><br>4<br>4<br>..3<br>%<br><br>AFFO per Common Share<br>–<br><br>Diluted<br><br>(<br>2<br>)<br><br>$<br><br>1.<br>47<br><br><br>$<br><br>1.04<br><br><br>$<br><br>0.<br>43<br><br>41.3<br>%<br><br><br><br><br><br><br><br><br><br><br><br>Dividends Declared and Paid, per Preferred Share<br><br>$<br><br>1.20<br><br><br>$<br><br>0.38<br><br><br>$<br><br>0.<br>8<br>2<br><br>217.7<br>%<br><br>Dividends Declared and Paid, per Common Share<br><br>$<br><br>1.1<br>1<br><br><br>$<br><br>1.00<br><br><br>$<br><br>0.<br>11<br><br>11.3%<br><br>(1)<br><br>The denominator for<br>this<br><br>measure<br><br>in 2022<br><br>excludes<br><br>the impact of<br>3.1<br><br>million<br><br>shares related to the Company’s adoption of ASU 2020<br>-<br>06,<br>effective January 1, 2022, which<br>requires presentation on an if<br>-<br>converted basis for its 2025 Convertible Senior Notes<br>, as the impact would be<br>anti<br>-<br>dilutive.<br><br><br>(<br>2<br>)<br><br>See the “Non<br>-<br>GAAP Financial Measures” section and tables at the end of this press release for a discussion and reconciliation o<br>f Net Income<br>Attributable to the Company to non<br>-<br>GAAP financial measures, including FFO Attributable to Common Stockholders, FFO per Common Share<br>-<br><br>Diluted, Core FFO Attributable to Common Stockholders, Core FFO per Common Share<br>–<br><br>Diluted, AFFO Attributable<br><br>to Common<br>Stockholders and AFFO per Common Share<br>-<br><br>Diluted.<br><br><br><br>Investments<br><br><br>During the three months ended<br>September<br><br>30, 2022, the<br>Company acquired Madison Yards, a 162,500 square foot<br>grocery<br>-<br>anchored property located in the Inman<br>Park/Reynoldstown submarket along the Memorial Drive corridor of<br>Atlanta, Georgia for a purchase price of $80.2 million. The property is 9<br>9<br>% occupied, anchored by Publix and AMC<br>Theatres, includes a well<br>-<br>crafted mix of retailers and restaurants, including<br>AT&T, First Watch, and Orangetheory<br>Fitness.<br><br>The purchase price represents a going<br>-<br>in cap rate below the range of the Company’s prior guidance for initial<br>cash yields.<br><br><br>During the<br>nine<br><br>months ended<br>September<br><br>30, 202<br>2<br>,<br>the Company acquired<br>two<br><br>multi<br>-<br>tenant retail propert<br>ies<br><br>for total<br>income property acquisition volume of $<br>119.3<br><br>million and originated three structured investments to provide $57.7<br>million of funding towards<br>three<br>retail and<br>mixed<br>-<br>use<br><br>properties<br>..<br>These acq<br>uisitions and structured investments<br>represent a blended weighted average going<br>-<br>in<br>yield of<br>7.<br>2<br>%.<br><br><br>Subsequent to quarter<br>-<br>end, the Company acquired<br>West Broad Village<br>, a<br>392,00<br>0<br><br>square foot grocery<br>-<br>anchored<br>lifestyle<br>property located in<br><br>the<br><br>Short Pump submarket<br>of<br>Richmond, Virginia<br><br>for a purchase price of $<br>93.<br>9<br><br>million. The<br>property<br>,<br>anchored<br><br>by<br>Whole Foods<br><br>and<br>REI<br>,<br>is<br>83<br>% occupied<br><br>and comprised of approximately 315,600 square feet of<br>retail and 76,400 square feet of complementary office and<br><br>includes an attractive combination of national and local<br>tenants spanning the grocery, food & beverage, entertainment, education, home décor, childcare and medical<br>sectors.<br><br>The purchase price represents a going<br>-<br>in cap rate above the range of the Company’<br>s prior guidance for initial<br>cash yields.<br><br><br>Dispositions<br><br><br>During the<br>three<br><br>months ended September 30, 2022, the Company sold<br>two<br><br>single tenant<br>retail<br>properties<br>, its sole<br>remaining multi<br>-<br>tenant<br><br>office<br>property<br>, and one multi<br>-<br>tenant<br>retail<br>property<br><br>in Hialeah, Florida that was classified as a<br>commercial loan investment due to the tenant’s repurchase option<br>..<br>Total<br>disposition volume was<br><br>$<br>57<br>..0 million<br>at a<br>weighted average exit cap rate of 6.3%, generating total gains of $5.0 million.<br><br><br>During the nine<br><br>months ended September 30, 2022, the Company sold<br>six<br><br>properties<br>,<br>two<br><br>of which<br>were<br>classified as a<br>commercial loan investment due to the<br><br>respective<br><br>tenants<br>’<br><br>repurchase option<br>s<br>, for $<br>81.1<br><br>million at a weighted average<br>exit cap rate of 6.<br>2<br>%. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>6<br>Income Property<br>Portfolio<br><br><br>The Company’s income property portfolio consisted of the following<br>as of<br>September<br><br>3<br>0<br>, 2022:<br><br><br><br>Asset<br><br>Type<br><br><br><br># of Properties<br><br><br><br>Square Feet<br><br><br><br>Weighted Average<br>Remaining Lease Term<br><br>Single<br><br>Tenant<br><br><br><br>5<br><br><br><br><br>407<br><br><br><br>5.9<br><br>years<br><br>Multi<br>-<br>Tenant<br><br><br><br>1<br>3<br><br><br><br>2,337<br><br><br><br>6.<br>6<br><br>years<br><br>Total / Weighted Average Lease Term<br><br><br><br>18<br><br><br><br>2<br>,<br>744<br><br><br><br>6.<br>5<br><br>years<br><br><br><br>Property Type<br><br><br><br># of Properties<br><br><br><br>Square Feet<br><br><br><br>% of<br>Cash Base<br>Rent<br><br>Retail<br><br><br><br><br>1<br>2<br><br><br><br>1,9<br>44<br><br><br><br>6<br>7.3<br>%<br><br>Office<br><br><br>3<br><br><br>395<br><br><br>1<br>3.8<br>%<br><br>Mixed<br>-<br>Use<br><br><br>3<br><br><br>40<br>5<br><br><br>1<br>8.9<br>%<br><br>Total / Weighted Average Lease Term<br><br><br><br>18<br><br><br><br>2,<br>7<br>44<br><br><br><br>100.0%<br><br><br><br>Leased Occupancy<br><br>9<br>4<br>..<br>4<br>%<br><br><br><br>Ec<br>onomic Occupancy<br><br>9<br>1.<br>8<br>%<br><br><br><br>Physical Occupancy<br><br>90.<br>4<br>%<br><br><br><br>Square feet in thousands.<br><br><br>Operational<br>Highlights<br><br><br><br>The Company’s Same<br>-<br>Property NOI totaled $<br>8.5<br><br>million during the<br>third<br><br>quarter of 2022, an increase of<br>12.0<br>% over<br>the comparable prior year period, as presented in the following table.<br><br><br>(in thousands)<br><br>For the Three<br><br>Months Ended<br><br>September<br><br>3<br>0<br>, 2022<br><br><br><br>For the Three<br><br>Months Ended<br><br>September<br><br>30<br>, 2021<br><br><br>Variance to Comparable<br>Period in the Prior Year<br><br>Single<br>Tenant<br><br>$<br><br>1<br>,<br>920<br><br><br>$<br><br>1,746<br><br><br>$<br><br>174<br><br>10.0<br>%<br><br>Multi<br>-<br>Tenant<br><br><br>6<br>,<br>545<br><br><br><br>5,815<br><br><br><br>730<br><br>12.6<br>%<br><br>Total<br><br>$<br><br>8,465<br><br><br>$<br><br>7,561<br><br><br>$<br><br>904<br><br>12.0<br>%<br><br><br>During the<br>third<br><br>quarter of 2022, the Company signed leases totaling<br>75,231<br><br>square feet. A summary of the Company’s<br>leasing activity is as follows:<br><br><br><br>Retail<br><br><br><br>Square<br>Feet<br><br><br>Weighted Average<br>Lease Term<br><br><br>Cash Rent Per<br>Square Foot<br><br><br>Tenant<br>Improvements<br><br><br>Leasing<br>Commissions<br><br>New Leases<br><br><br>43.4<br><br><br>8.7<br><br>years<br><br><br>$<br>3<br>6.14<br><br><br>$<br><br>3,025<br><br><br>$<br><br>1,033<br><br>Renewals & Extensions<br><br><br><br>31.8<br><br><br>5.8<br><br>years<br><br><br>$<br>29<br>..62<br><br><br>$<br><br>—<br><br><br>$<br><br>77<br><br>T<br>otal / Weighted Average<br><br><br><br>75.2<br><br><br>7.6<br><br>years<br><br><br>$3<br>3.39<br><br><br>$<br><br>3,025<br><br><br>$<br><br>1,110<br><br>In thousands except for per square foot and lease term data. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>7<br>Subsurface<br>Interests<br><br>and Mitigation Credits<br><br><br>During the three months ended<br>September<br><br>3<br>0<br>, 2022, the Company sold approximately<br>1,500<br><br>acres of subsurface oil,<br>gas, and mineral rights for $0.<br>7<br><br>million, resulting in aggregate gains of $0.<br>7<br><br>million.<br><br><br>During the<br>nine<br><br>months ended<br>September<br><br>30, 202<br>2<br>,<br>the Company sold<br>approximately<br>1<br>4,582<br><br>acres of subsurface oil,<br>gas and mineral rights for $<br>1.6<br><br>million, resulting in a gain on the sale of $<br>1.5<br><br>million.<br>As of<br>September<br><br>30<br>, 202<br>2<br>, the<br>Company owns<br>full or fractional subsurface oil, gas, and mineral interest<br>s underlying approximately<br>355<br>,000<br><br>“surface”<br>acres of land owned by others<br>in<br>19<br><br>counties<br><br>in Florida.<br><br><br>During the three months ended<br>September<br><br>3<br>0<br>, 2022, the Company sold approximately<br>24.7<br><br>state<br><br>mitigation credits<br>for<br>$<br>2.3<br><br>million, resulting in aggregate gains of $0.<br>7<br><br>million.<br><br><br>During the nine months ended September 30, 2022,<br>the Company sold<br>approximately<br><br>26.6 state mitigation credits<br>for<br>$<br>2.6<br><br>million, resulting in a gain on the sale of $<br>0.<br>8<br><br>million.<br><br><br>Capital Markets and<br>Balance Sheet<br><br><br>During the quarter ended<br>September<br><br>3<br>0<br>, 2022, the Company completed the following notable capital markets activity:<br><br><br>▪<br><br>On September<br>2<br>0, 2022, the Company amended its senior unsecured Credit Facility. The Credit Facility was<br>increased to $565 million and is comprised of a $300 million unsecured revolving credit facility, a new $100<br>million unsecured<br>2028<br>term loan, and the Company’s existing $165 million of unsecured term loans<br>(altogether, the “Credit Facility”). The Credit F<br>acility includes structural changes to certain financial covenants,<br>a sustainability<br>-<br>linked pricing component that reduces the applicable interest rate margin if the Company meets<br>certain sustainability performance targets, and an accordion option that all<br>ows the Company to request<br>additional commitments up to a total of $750 million.<br><br>▪<br><br>I<br>ssued<br>565,687<br><br>common shares under its ATM offering program at a weighted average gross price of $<br>22.02<br><br>per share, for total net proceeds of $<br>12.3<br><br>million.<br><br>▪<br><br>Repurchased<br>85,694<br><br>shares for approximately $1.<br>6<br><br>million at a weighted average gross price of $<br>19.17<br><br>per<br>share.<br><br>▪<br><br>Completed a three<br>-<br>for<br>-<br>one stock split and began trading at the post<br>-<br>split price on July 1, 2022. The stock split<br>was effected in the form of a stock<br>dividend of two additional shares of common stock for each outstanding<br>share of common stock held as of the record date for the stock dividend.<br><br><br>The following table provides a summary of the Company’s long<br>-<br>term debt, at face value, as of<br>September<br><br>30, 202<br>2<br>:<br><br><br>Component of Long<br>-<br>Term Debt<br><br><br><br>Principal<br><br><br><br>Interest Rate<br><br><br><br>Maturity Date<br><br>Revolving Credit Facility<br><br><br><br>$<br>38.5<br><br>million<br><br><br><br>SOFR<br><br>+<br>10 bps +<br>[1.<br>2<br>5%<br>–<br><br>2.20<br>%]<br><br><br><br>January<br><br>202<br>7<br><br>2025 Convertible Senior Notes<br><br><br><br>$51.0 million<br><br><br><br>3.875%<br><br><br><br>April 2025<br><br>2026 Term Loan<br>(1)<br><br><br><br>$65.0 million<br><br><br><br>SOFR<br><br>+<br>10 bps +<br>[1.<br>2<br>5%<br>–<br><br>2.20<br>%]<br><br><br><br>March 2026<br><br>2027 Term Loan<br>(2)<br><br><br><br>$100.0 million<br><br><br><br>SOFR<br><br>+<br>10 bps +<br>[1<br>..25<br>%<br>–<br><br>2.20<br>%]<br><br><br><br>January 2027<br><br>202<br>8<br><br>Term Loan<br>(<br>3<br>)<br><br><br>$100.0 million<br><br><br><br>SOFR<br><br>+<br>10 bps +<br>[1.<br>2<br>0<br>%<br>–<br><br>2.<br>15<br>%]<br><br><br><br>January 202<br>8<br><br>Mortgage Note<br>(<br>4<br>)<br><br><br><br>$17.8 million<br><br><br><br>4.06%<br><br><br><br>August 2026<br><br>Total Debt / Weighted Average Interest Rate<br><br><br><br>$<br>3<br>72.3<br><br>million<br><br><br><br>3.44<br>%<br><br><br><br><br><br>(1)<br><br>The Company utilized interest rate swaps on the $65.0 million 2026 Term Loan balance to fix SOFR and<br>achieve a weighted average fixed<br>swap rate of 0.26% plus the 10 bps SOFR adjustment plus the applicable spread<br>..<br><br>(2)<br><br>The Company utilized interest rate swaps on the $100.0 million 2027 Term Loan balance to fix SOFR and achieve a fixed swap ra<br>te of<br>0.64%<br>plus the 10 bps SOFR adjustment plus the applicable spread<br>.. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>8<br>(3)<br><br>The Company entered into interest rate swaps on the $100.0 million 2028 Term Loan balance to fix SOFR and achieve a weighted<br>average<br>fixed swap rate of 3.78% plus the 10 bps SOFR adjust<br>ment plus the applicable spread<br>..<br><br>(<br>4<br>)<br><br>Mortgage note assumed in connection with the acquisition of Price Plaza<br>Shopping Center<br>located in Katy, Texas.<br><br><br>As of<br>September<br><br>3<br>0<br>, 2022, the Company’s net debt to Pro Forma EBITDA was<br>6.<br>4<br><br>times, and as defined in the<br>Company’s credit agreement, the Company’s fixed charge<br>coverage ratio was<br>3.4<br><br>times<br>.. As of<br>September<br><br>3<br>0<br>, 2022, the<br>Company’s net debt to total enterprise value was<br>4<br>3<br>..<br>2<br>%.<br><br>The Company calculates total enterprise value as the sum of<br>net debt<br>, par value of its 6.375% Series A preferred equity,<br><br>and the market value of the Company's outstanding common<br>shares<br>..<br><br><br>Dividend<br>s<br><br><br>On<br>August 22<br>, 2022, the Company announced a cash dividend on its common stock and Series A Preferred stock for<br>the<br>third<br><br>quarter of 2022 of $<br>0.38<br><br>per share and $0.<br>40<br><br>per share, respectively, payable on<br>September<br><br>3<br>0<br>, 2022 to<br>stockholders of record as of the close of bu<br>siness on<br>September<br><br>12<br>, 2022. The<br>third<br><br>quarter 2022 common stock cash<br>dividend represents a<br><br>1<br>4<br>..0% increase over the comparable prior year period quarterly dividend and a payout ratio of<br>80.9<br>% and<br>77.6<br>% of the Company’s<br>third<br><br>quarter 2022 Core FFO per dilu<br>ted share and AFFO per diluted share,<br>respectively.<br><br><br>202<br>2<br><br>Outlook<br><br><br>The Company has increased its outlook for 2022 to take into account the Company’s year<br>-<br>to<br>-<br>date performance and revised<br>expectations regarding the Company’s investment activities, forecasted capital markets transactions,<br>leasing activity,<br>and<br>other signific<br>ant assumptions.<br><br><br>The Company’s increased outlook for 2022 is as follows<br>:<br><br><br><br><br>2022 Revised Outlook Range<br><br><br>Change from Prior Outlook<br><br><br>Low<br><br><br>High<br><br><br>Low<br><br><br>High<br><br>Acquisition of Income Producing Assets<br><br><br>$<br>2<br>71<br><br>million<br><br>to<br><br>$2<br>7<br>1<br><br>million<br><br><br>$<br>21<br><br>million<br><br>to<br><br>(<br>$<br>4)<br><br>million<br><br>Target Investment Initial Cash Yield<br><br>7.<br>2<br>5<br>%<br><br>to<br><br>7.<br>2<br>5<br>%<br><br><br>2<br>0<br><br>bps<br><br>to<br><br>0<br><br>bps<br><br>Disposition of Assets<br><br>$<br>81<br><br>million<br><br>to<br><br>$<br>8<br>3<br><br>million<br><br><br>$<br>31<br><br>million<br><br>to<br><br>$<br>3<br><br>million<br><br>Target Disposition Cash Yield<br><br>6.<br>15<br>%<br><br>to<br><br>6.<br>2<br>5<br>%<br><br><br>(<br>1<br>0)<br><br>bps<br><br>to<br><br>(<br>50<br>)<br><br>bps<br><br><br><br><br><br><br><br><br><br>Core<br>FFO Per Diluted Share<br><br>$<br>1.<br>71<br><br>to<br><br>$<br>1.<br>7<br>4<br><br><br>$0.<br>13<br><br>to<br><br>$0.<br>10<br><br>AFFO Per Diluted Share<br><br>$<br>1.7<br>9<br><br>to<br><br>$<br>1.<br>82<br><br><br>$0.0<br>9<br><br>to<br><br>$0.0<br>6<br><br><br><br><br><br><br><br><br><br>Weighted Average Diluted<br><br>Shares Outstanding<br><br>18.<br>2<br><br>million<br><br>to<br><br>18<br>..<br>2<br><br>million<br><br><br>(<br>0<br>..1)<br><br>million<br><br>to<br><br>(<br>0.3<br>)<br><br>million<br><br><br>3rd<br><br>Quarter Earnings Conference Call & Webcast<br><br><br>The Company will host a conference call to present its operating results for the quarter ended<br>September<br><br>30, 2022 on<br>Friday,<br>October<br><br>2<br>8<br>, 2022, at 9:00 AM ET.<br><br><br>A live webcast of the call will be available on the Investor Relations page of the Company’s website at<br>www.ctoreit.com<br><br>or at the link provided in the event details below. To access the call by phone, please go to the<br><br>link provided in the event<br>details below and you will be provided with dial<br>-<br>in details.<br><br><br>Webcast:<br>https://edge.media<br>-<br>server.com/mmc/p/haf26ajs |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>9<br>Dial<br>-<br>In:<br>https://register.vevent.com/register/BI7d526face25a498fb3ea12784d73ae34<br><br><br><br>We encourage participants to dial into the conference call at least fifteen minutes ahead of the scheduled start time. A<br>replay of the earnings call will be archived and available online through the Investor Relations section of the Company’s<br>website at<br>www.ctoreit.com<br>..<br><br><br><br><br>About<br>CTO Realty Growth, Inc.<br><br><br>CTO Realty Growth, Inc. is a publicly traded real estate investment trust that owns and operates a portfolio of high<br>-<br>quality, retail<br>-<br>based properties located primarily<br>in higher growth markets in the United States. CTO also externally<br>manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE), a publicly traded net<br>lease REIT.<br><br><br>We encourage you to review our most recent investor presentatio<br>n and supplemental financial information, which is<br>available on our website at<br>www.ctoreit.com<br>..<br><br><br><br>Safe Harbor<br><br><br>Certain statements contained in this press release (other than statements of historical fact) are<br>forward<br>-<br>looking<br>statements within the meaning of Section 27A of the Securities Act of 1933, as amended<br>,<br><br>and Section 21E of the<br>Securities Exchange Act of 1934, as amended. Forward<br>-<br>looking statements can typically be identified by words such<br>as “believe,” “<br>estimate,” “expect,” “intend,” “anticipate,” “will,” “could,” “may,” “should,” “plan,” “potential,”<br>“predict,” “forecast,” “project,” and similar expressions, as well as variations or negatives of these words.<br><br><br>Although forward<br>-<br>looking statements are made<br>based upon management’s present expectations and reasonable beliefs<br>concerning future developments and their potential effect upon the Company, a number of factors could cause the<br>Company’s actual results to differ materially from those set forth in the fo<br>rward<br>-<br>looking statements. Such factors may<br>include, but are not limited to: the Company’s ability to remain qualified as a REIT; the Company’s exposure to U.S.<br>federal and state income tax law changes, including changes to the REIT requirements; general ad<br>verse economic and<br>real estate conditions; macroeconomic and geopolitical factors, including but not limited to inflationary pressures,<br>interest rate volatility, global supply chain disruptions, and ongoing geopolitical war; the ultimate geographic spread,<br><br>severity and duration of pandemics such as the COVID<br>-<br>19 Pandemic and its variants, actions that may be taken by<br>governmental authorities to contain or address the impact of such pandemics, and the potential negative impacts of<br>such pandemics on the global<br><br>economy and the Company’s financial condition and results of operations; the inability<br>of major tenants to continue paying their rent or obligations due to bankruptcy, insolvency or a general downturn in<br>their business; the loss or failure, or decline in<br>the business or assets of PINE; the completion of 1031 exchange<br>transactions; the availability of investment properties that meet the Company’s investment goals and criteria; the<br>uncertainties associated with obtaining required governmental permits and sat<br>isfying other closing conditions for<br>planned acquisitions and sales; and the uncertainties and risk factors discussed in the Company’s Annual Report on<br>Form 10<br>-<br>K for the fiscal year ended December 31, 2021 and other risks and uncertainties discussed from t<br>ime to time<br>in the Company’s filings with the U.S. Securities and Exchange Commission.<br><br><br>There can be no assurance that future developments will be in accordance with management’s expectations or that the<br>effect of future developments on the Company will be<br><br>those anticipated by management. Readers are cautioned not to<br>place undue reliance on these forward<br>-<br>looking statements, which speak only as of the date of this press release. The<br>Company undertakes no obligation to update the information contained in this<br><br>press release to reflect subsequently<br>occurring events or circumstances.<br><br><br>Non<br>-<br>GAAP Financial Measures<br><br><br>Our reported results are presented in accordance with accounting principles generally accepted in the United States of<br>America (“GAAP”). We also<br>disclose<br><br>Funds From Operations (“FFO”), Core Funds From Operations (“Core FFO”), |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>10<br>Adjusted Funds From Operations (“AFFO”), Pro Forma Earnings Before Interest, Taxes, Depreciation and<br>Amortization (“Pro Forma EBITDA”), and Same<br>-<br>Property Net Operating Income<br>(“Same<br>-<br>Property NOI”), each of<br>which are non<br>-<br>GAAP financial measures. We believe these non<br>-<br>GAAP financial measures are useful to investors<br>because they are widely accepted industry measures used by analysts and investors to compare the operating<br>performanc<br>e of REITs.<br><br><br>FFO, Core FFO, AFFO, Pro Forma EBITDA, and Same<br>-<br>Property NOI do not represent cash generated from operating<br>activities and are not necessarily indicative of cash available to fund cash requirements; accordingly, they should not<br>be considered a<br>lternatives to net income as a performance measure or cash flows from operating activities as reported<br>on our statement of cash flows as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP<br>financial measures.<br><br><br>We compute F<br>FO in accordance with the definition adopted by the Board of Governors of the National Association of<br>Real Estate Investment Trusts, or NAREIT. NAREIT defines FFO as GAAP net income or loss adjusted to exclude<br>extraordinary items (as defined by GAAP), net<br>gain or loss from sales of depreciable real estate assets, impairment<br>write<br>-<br>downs associated with depreciable real estate assets and real estate related depreciation and amortization,<br>including the pro rata share of such adjustments of unconsolidated subsi<br>diaries. The Company also excludes the gains<br>or losses from sales of assets incidental to the primary business of the REIT which specifically include the sales of<br>mitigation credits, impact fee credits, subsurface sales, and land sales, in addition to the<br>mark<br>-<br>to<br>-<br>market of the<br>Company’s investment securities and interest related to the 2025 Convertible Senior Notes, if the effect is dilutive. To<br>derive Core FFO, we modify the NAREIT computation of FFO to include other adjustments to GAAP net income<br>related<br>to gains and losses recognized on the extinguishment of debt, amortization of above<br>-<br><br>and below<br>-<br>market lease<br>related intangibles, and other unforecastable market<br>-<br><br>or transaction<br>-<br>driven non<br>-<br>cash items. To derive AFFO, we further<br>modify the NAREIT computation<br><br>of FFO and Core FFO to include other adjustments to GAAP net income related to<br>non<br>-<br>cash revenues and expenses such as straight<br>-<br>line rental revenue, non<br>-<br>cash compensation, and other non<br>-<br>cash<br>amortization, as well as adding back the interest related to the<br>2025 Convertible Senior Notes, if the effect is dilutive.<br>Such items may cause short<br>-<br>term fluctuations in net income but have no impact on operating cash flows or long<br>-<br>term<br>operating performance. We use AFFO as one measure of our performance when we formul<br>ate corporate goals.<br><br><br>To derive Pro Forma EBITDA, GAAP net income or loss<br><br>attributable to the Company<br><br>is adjusted to exclude<br>extraordinary items (as defined by GAAP), net gain or loss from sales of depreciable real estate assets, impairment<br>write<br>-<br>downs ass<br>ociated with depreciable real estate assets and real estate related depreciation and amortization,<br>including the pro rata share of such adjustments of unconsolidated subsidiaries, non<br>-<br>cash revenues and expenses such<br>as straight<br>-<br>line rental revenue, amortiz<br>ation of deferred financing costs, above<br>-<br><br>and below<br>-<br>market lease related<br>intangibles, non<br>-<br>cash compensation, and other non<br>-<br>cash income or expense. Cash interest expense is also excluded from<br>Pro Forma EBITDA, and GAAP net income or loss is adjusted for the<br><br>annualized impact of acquisitions, dispositions<br>and other similar activities.<br><br><br>To derive Same<br>-<br>Property NOI, GAAP net income or loss attributable to the Company is adjusted to exclude<br>extraordinary items (as defined by GAAP), gain or loss on disposition of<br><br>assets, gain or loss on extinguishment of debt,<br>impairment charges, and depreciation and amortization, including the pro rata share of such adjustments of<br>unconsolidated subsidiaries, if any, non<br>-<br>cash revenues and expenses such as above<br>-<br><br>and below<br>-<br>market<br>lease related<br>intangibles, straight<br>-<br>line rental revenue, and other non<br>-<br>cash income or expense. Interest expense, general and<br>administrative expenses, investment and other income or loss, income tax benefit or expense, real estate operations<br>revenues and di<br>rect cost of revenues, management fee income, and interest income from commercial loan<br>s<br><br>and<br>investments are also excluded from Same<br>-<br>Property NOI. GAAP net income or loss is further adjusted to remove the<br>impact of properties that were not owned for the ful<br>l current and prior year reporting periods presented. Cash rental<br>income received under the leases pertaining to the Company’s assets that are presented as commercial loan<br>s<br><br>and<br>investments in accordance with GAAP is also used in lieu of the interest income<br><br>equivalent.<br><br><br>FFO is used by management, investors and analysts to facilitate meaningful comparisons of operating performance<br>between periods and among our peers primarily because it excludes the effect of real estate depreciation and<br>amortization and net gains or losse<br>s on sales, which are based on historical costs and implicitly assume that the value |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>11<br>of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. We believe<br>that Core FFO and AFFO are additional useful suppl<br>emental measures for investors to consider because they will help<br>them to better assess our operating performance without the distortions created by other non<br>-<br>cash revenues or expenses.<br>We also believe that Pro Forma EBITDA is an additional useful suppleme<br>ntal measure for investors to consider as it<br>allows for a better assessment of our operating performance without the distortions created by other non<br>-<br>cash revenues,<br>expenses or certain effects of the Company’s capital structure on our operating performance<br>.. We use Same<br>-<br>Property<br>NOI to compare the operating performance of our assets between periods. It is an accepted and important measurement<br>used by management, investors and analysts because it includes all property<br>-<br>level revenues from the Company’s<br>propert<br>ies, less operating and maintenance expenses, real estate taxes and other property<br>-<br>specific expenses (“Net<br>Operating Income” or “NOI”) of properties that have been owned and stabilized for the entire current and prior year<br>reporting periods. Same<br>-<br>Property<br>NOI attempts to eliminate differences due to the acquisition or disposition of<br>properties during the particular period presented, and therefore provides a more comparable and consistent performance<br>measure for the comparison of the Company's properties. FF<br>O, Core FFO, AFFO, Pro Forma EBITDA, and Same<br>-<br>Property NOI may not be comparable to similarly titled measures employed by other companies. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>12<br>Consolidated Balance Sheet<br>CTO Realty Growth, Inc.<br><br>Consolidated<br>Balance Sheet<br>s<br><br>(<br>In thousands, except<br>share and per<br>share data<br>)<br><br><br><br><br><br>As of<br><br><br><br><br>(Unaudited)<br><br>September<br><br>30,<br>2022<br><br><br><br>December<br><br>31,<br><br>2021<br><br>ASSETS<br><br><br><br><br><br><br><br>Real Estate:<br><br><br><br><br><br><br><br>Land, at Cost<br><br><br>$<br><br><br>209,298<br><br><br>$<br><br><br>189,589<br><br>Building and Improvements, at Cost<br><br><br><br><br>3<br>77,<br>758<br><br><br><br><br>325,418<br><br>Other Furnishings and Equipment, at Cost<br><br><br><br><br>746<br><br><br><br><br>707<br><br>Construction in Process, at Cost<br><br><br><br><br>10,<br>717<br><br><br><br><br>3,150<br><br>Total Real Estate, at Cost<br><br><br><br><br>5<br>9<br>8,519<br><br><br><br><br>518,864<br><br>Less, Accumulated Depreciation<br><br><br><br><br>(31,<br>278<br>)<br><br><br><br><br>(24,169)<br><br>Real Estate<br>—<br>Net<br><br><br><br><br>5<br>6<br>7,241<br><br><br><br><br>494,695<br><br>Land and Development Costs<br><br><br><br><br>6<br>85<br><br><br><br><br>692<br><br>Intangible Lease Assets<br>—<br>Net<br><br><br><br><br>87,<br>671<br><br><br><br><br>79,492<br><br>Assets Held for Sale<br><br><br><br><br>—<br><br><br><br><br>6,720<br><br>Investment in Alpine Income Property Trust, Inc.<br><br><br><br><br>3<br>5,260<br><br><br><br><br>41,037<br><br>Mitigation Credits<br><br><br><br><br>2,846<br><br><br><br><br>3,702<br><br>Mitigation Credit Rights<br><br><br><br><br>19,999<br><br><br><br><br>21,018<br><br>Commercial Loans and Investments<br><br><br><br><br>46,<br>201<br><br><br><br><br>39,095<br><br>Cash and Cash Equivalents<br><br><br><br><br>9,532<br><br><br><br><br>8,615<br><br>Restricted Cash<br><br><br><br><br>37,292<br><br><br><br><br>22,734<br><br>Refundable Income Taxes<br><br><br><br><br>448<br><br><br><br><br>442<br><br>Deferred Income Taxes<br>—<br>Net<br><br><br><br><br>61<br><br><br><br><br>—<br><br>Other Assets<br><br><br><br><br>38,<br>536<br><br><br><br><br>14,897<br><br>Total Assets<br><br><br>$<br><br><br>8<br>4<br>5,772<br><br><br>$<br><br><br>733,139<br><br>LIABILITIES AND STOCKHOLDERS’ EQUITY<br><br><br><br><br><br><br><br>Liabilities:<br><br><br><br><br><br><br><br>Accounts Payable<br><br><br>$<br><br><br>1<br>,13<br>6<br><br><br>$<br><br><br>676<br><br>Accrued and Other Liabilities<br><br><br><br><br>1<br>8,149<br><br><br><br><br>13,121<br><br>Deferred Revenue<br><br><br><br><br>5,<br>840<br><br><br><br><br>4,505<br><br>Intangible Lease<br>Liabilities<br>—<br>Net<br><br><br><br><br>5,<br>995<br><br><br><br><br>5,601<br><br>Deferred Income Taxes<br>—<br>Net<br><br><br><br><br>—<br><br><br><br><br>483<br><br>Long<br>-<br>Term Debt<br><br><br><br><br>3<br>70,248<br><br><br><br><br>278,273<br><br>Total Liabilities<br><br><br><br><br>4<br>01,368<br><br><br><br><br>302,659<br><br>Commitments and Contingencies<br><br><br><br><br><br><br><br>Stockholders’ Equity:<br><br><br><br><br><br><br><br>Preferred Stock<br>–<br><br>100,000,000 shares authorized; $0.01 par value, 6.375% Series A<br>Cumulative Redeemable Preferred Stock, $25.00 Per Share Liquidation Preference,<br>3,000,000 shares issued and outstanding at<br>September<br><br>30, 2022 and December<br><br>31, 2021<br><br><br><br><br>30<br><br><br><br><br>30<br><br>Common Stock<br>–<br><br>500,000,000 shares authorized; $0.01 par value,<br>18,796,612<br><br>shares<br>issued and outstanding at<br>September<br><br>30, 2022<br>;<br><br>and<br>17,<br>748,678<br><br>shares issued and<br>outstanding at December<br><br>31, 2021<br><br><br><br><br>188<br><br><br><br><br>60<br><br>Additional Paid<br>-<br>In Capital<br><br><br><br><br>97,<br>419<br><br><br><br><br>85,414<br><br>Retained Earnings<br><br><br><br><br>3<br>29,<br>317<br><br><br><br><br>343,459<br><br>Accumulated Other Comprehensive Income<br><br><br><br><br>1<br>7,450<br><br><br><br><br>1,517<br><br>Total Stockholders’ Equity<br><br><br><br><br>4<br>44,<br>404<br><br><br><br><br>430,480<br><br>Total Liabilities and Stockholders’ Equity<br><br><br>$<br><br><br>8<br>4<br>5,772<br><br><br>$<br><br><br>733,139 |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>13<br>Consolidated P&L<br>CTO Realty Growth,<br>Inc.<br><br>Consolidated Statement<br>s<br><br>of Operations<br><br><br>(Unaudited<br>)<br><br>(I<br>n thousands, except share, per share and dividend data)<br><br><br><br><br>Three<br><br>Months<br><br>Ended<br><br><br>Nine<br><br>Months Ended<br><br><br><br>September<br><br>30,<br><br><br>September<br><br>30,<br><br><br>September<br><br>30,<br><br><br>September<br><br>30,<br><br><br><br><br>2022<br><br><br><br>2021<br><br><br><br>2022<br><br><br><br>2021<br><br>Revenues<br><br><br><br><br><br><br><br><br><br><br><br><br><br>Income Properties<br><br><br>$<br><br><br>17,<br>694<br><br><br>$<br><br>13,734<br><br><br>$<br><br><br>49,<br>229<br><br><br>$<br><br><br>36,757<br><br>Management Fee Income<br><br><br><br><br>951<br><br><br><br><br>940<br><br><br><br><br>2,835<br><br><br><br><br>2,361<br><br>Interest Income From<br>Commercial Loans and Investments<br><br><br><br><br>1<br>,323<br><br><br><br>726<br><br><br><br><br>3,331<br><br><br><br><br>2,1<br>36<br><br>Real Estate Operations<br><br><br><br><br>3,149<br><br><br><br><br>1,<br>177<br><br><br><br><br>4,395<br><br><br><br><br>4<br>,<br>318<br><br>Total Revenues<br><br><br><br><br>23,<br>117<br><br><br><br><br>1<br>6,577<br><br><br><br><br>59,790<br><br><br><br><br>45,572<br><br>Direct Cost of Revenues<br><br><br><br><br><br><br><br><br><br><br><br><br><br>Income Properties<br><br><br><br><br>(<br>5,115<br>)<br><br><br><br><br>(<br>3,984<br>)<br><br><br><br><br>(<br>13,943<br>)<br><br><br><br><br>(<br>9,688<br>)<br><br>Real Estate Operations<br><br><br><br><br>(<br>1,661<br>)<br><br><br><br><br>(<br>252<br>)<br><br><br><br><br>(<br>1,940<br>)<br><br><br><br><br>(<br>867<br>)<br><br>Total Direct Cost of Revenues<br><br><br><br><br>(<br>6,776<br>)<br><br><br><br><br>(<br>4,236<br>)<br><br><br><br><br>(<br>15,883<br>)<br><br><br><br><br>(<br>10,555<br>)<br><br>General and Administrative Expenses<br><br><br><br><br>(<br>3,253<br>)<br><br><br><br><br>(2,6<br>80<br>)<br><br><br><br><br>(<br>8,972<br>)<br><br><br><br><br>(<br>8,477<br>)<br><br>Impairment Charges<br><br><br><br><br>—<br><br><br><br>—<br><br><br><br><br>—<br><br><br><br><br>(16,52<br>7<br>)<br><br>Depreciation and Amortization<br><br><br><br><br>(<br>7,305<br>)<br><br><br><br><br>(5,<br>567<br>)<br><br><br><br><br>(<br>20,401<br>)<br><br><br><br><br>(<br>15,428<br>)<br><br>Total Operating Expenses<br><br><br><br><br>(1<br>7,334<br>)<br><br><br><br><br>(<br>12,48<br>3<br>)<br><br><br><br><br>(<br>45,256<br>)<br><br><br><br><br>(<br>50,987<br>)<br><br>Gain on Disposition of Assets<br><br><br><br><br>4,973<br><br><br><br>22,666<br><br><br><br><br>4,728<br><br><br><br><br>28,106<br><br>Loss on Extinguishment of Debt<br><br><br><br><br>—<br><br><br><br>—<br><br><br><br><br>—<br><br><br><br><br>(641)<br><br>Other Gains and Income<br><br><br><br><br>4,973<br><br><br><br><br>22,666<br><br><br><br><br>4,728<br><br><br><br><br>27,465<br><br>Total Operating Income<br><br><br><br><br>1<br>0,756<br><br><br><br><br>26,76<br>0<br><br><br><br><br>19,<br>262<br><br><br><br><br><br>22,050<br><br>Investment and Other Income (Loss)<br><br><br><br><br>(<br>3,065<br>)<br><br><br><br><br>(79<br>7<br>)<br><br><br><br><br>(<br>6,270)<br><br><br><br><br>8,438<br><br>Interest Expense<br><br><br><br><br>(<br>3,037<br>)<br><br><br><br><br>(<br>1,98<br>6)<br><br><br><br><br>(7,216)<br><br><br><br><br>(<br>6,851<br>)<br><br>Income Before Income Tax Benefit<br><br>(Expense)<br><br><br><br><br>4,<br>654<br><br><br><br><br>23,97<br>7<br><br><br><br><br>5,776<br><br><br><br><br>2<br>3,637<br><br>Income Tax Benefit (Expense)<br><br><br><br>163<br><br><br><br><br><br>(30)<br><br><br><br><br>461<br><br><br><br><br>4,371<br><br>Net Income Attributable to the Company<br><br><br><br><br>4,<br>817<br><br><br><br><br>23,94<br>7<br><br><br><br><br>6,<br>237<br><br><br><br><br>28,008<br><br>Distributions to Preferred Stockholders<br><br><br><br><br>(1,19<br>5)<br><br><br><br>(1,129)<br><br><br><br><br>(<br>3,586<br>)<br><br><br><br><br>(1,129)<br><br>Net Income Attributable to Common Stockholders<br><br><br>$<br><br><br>3,<br>622<br><br><br>$<br><br><br>22,81<br>8<br><br><br>$<br><br><br>2,<br>651<br><br><br>$<br><br><br>26,879<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>Per Share<br>Attributable to Common Stockholders<br>:<br><br><br><br><br><br><br><br><br><br><br><br><br><br>Basic Net Income<br>per Share<br><br><br>$<br><br><br>0.<br>2<br>0<br><br><br>$<br><br>1.29<br><br><br>$<br><br><br>0.1<br>5<br><br><br>$<br><br><br>1.52<br><br>Diluted<br>Net Income<br>per Share<br><br><br>$<br><br><br>0.<br>19<br><br><br>$<br><br>1.29<br><br><br>$<br><br><br>0.<br>15<br><br><br>$<br><br><br>1.52<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>Weighted Average Number of Common Shares<br><br><br><br><br><br><br><br><br><br><br><br><br><br>Basic<br><br><br><br>18,386,435<br><br><br><br>17,<br>703,284<br><br><br><br><br>18,044,299<br><br><br><br>17,678,701<br><br>Diluted<br><br><br><br>21,505,460<br><br><br><br>17,703,284<br><br><br><br>18,044,299<br><br><br><br>17,678,701<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>Dividends Declared and Paid<br>–<br><br>Preferred Stock<br><br><br>$<br><br><br>0.<br>40<br><br><br>$<br><br>0.3<br>8<br><br><br>$<br><br><br>1.20<br><br><br>$<br><br>0.38<br><br>Dividends Declared and Paid<br>–<br><br>Common Stock<br><br><br>$<br><br><br>0.38<br><br><br>$<br><br><br>0.3<br>3<br><br><br>$<br><br><br>1.1<br>1<br><br><br>$<br><br><br>1<br>..00 |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>14<br>Non<br>-<br>GAAP Financial Measures<br>CTO Realty Growth, Inc.<br><br>Non<br>-<br>GAAP Financial<br>Measures<br><br>Same<br>-<br>Property NOI Reconciliation<br><br>(Unaudited)<br><br>(In thousands)<br><br><br><br><br><br>Three<br><br>Months<br><br>Ended<br><br><br><br>September<br><br>3<br>0<br>,<br><br>2022<br><br><br><br>September<br><br>3<br>0<br>,<br><br>2021<br><br>Net Income Attributable to the Company<br><br>$<br><br>4,817<br><br><br><br>$<br><br>23,<br>947<br><br><br>Gain<br><br>on Disposition of Assets<br><br><br>(4,973)<br><br><br><br>(<br>2<br>2,666)<br><br>Depreciation and Amortization<br><br>per Income Statement<br><br><br>7,305<br><br><br><br>5,567<br><br>Amortization of Intangibles to Lease Income<br><br><br>(<br>507)<br><br><br><br>86<br><br>Straight<br>-<br>Line Rent Adjustment<br><br><br>600<br><br><br><br>669<br><br>COVID<br>-<br>19 Rent<br>Deferrals<br><br><br>(26<br>)<br><br><br><br>(84)<br><br>Accretion of Tenant Contribution<br><br><br>38<br><br><br><br>38<br><br>Interest Expense<br><br><br>3,037<br><br><br><br>1,986<br><br><br>General and Administrative Expenses<br><br><br>3,253<br><br><br><br>2,680<br><br>Investment and Other<br>Loss (<br>Income)<br><br><br>3,065<br><br><br><br>797<br><br>Income Tax<br><br>Benefit<br><br>(<br>Expense<br>)<br><br><br>(163)<br><br><br><br>30<br><br>Real Estate Operations Revenues<br><br><br>(<br>3,149)<br><br><br><br>(1,<br>177)<br><br>Real Estate<br>Operations Direct Cost of Revenues<br><br><br>1,661<br><br><br><br>252<br><br>Management Fee Income<br><br><br>(9<br>51)<br><br><br><br>(<br>940)<br><br>Interest Income from Commercial Loan<br>s<br><br>and Investments<br><br><br>(1,<br>323)<br><br><br><br>(<br>726)<br><br>Less: Impact of Properties Not Owned<br>for<br>the Full Reporting Period<br><br><br>(4,<br>219)<br><br><br><br>(<br>2,898)<br><br>Same<br>-<br>Property NOI<br><br>$<br><br>8,465<br><br><br><br>$<br><br>7,561 |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>15<br>Non<br>-<br>GAAP Financial Measures<br>CTO Realty Growth, Inc.<br><br>Non<br>-<br>GAAP Financial Measures<br><br>(<br>Unaudited<br>)<br><br>(I<br>n thousands, except per share data<br>)<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>Three Months Ended<br><br><br>Nine<br><br>Months Ended<br><br><br><br>September<br><br>30,<br>2022<br><br><br>September<br><br>30,<br>2021<br><br><br>September<br><br>30,<br>2022<br><br><br>September<br><br>30,<br>2021<br><br>Net Income Attributable to the Company<br><br><br>$<br><br><br>4,817<br><br><br>$<br><br>23,947<br><br><br>$<br><br><br>6,<br>237<br><br><br>$<br><br>28,008<br><br>Add Back: Effect of Dilutive Interest Related to 2025 Notes<br>(1)<br><br><br><br><br>539<br><br><br><br><br>—<br><br><br><br><br>—<br><br><br><br><br>—<br><br>Net Income Attributable to the Company, If<br>-<br>Converted<br><br><br>$<br><br><br>5,<br>356<br><br><br>$<br><br><br>23,947<br><br><br><br><br>6,<br>237<br><br><br><br><br>28,008<br><br>Depreciation and Amortization<br><br>of Real Estate<br><br><br><br><br>7,<br>283<br><br><br><br><br>5,<br>567<br><br><br><br><br>20<br>,359<br><br><br><br><br>15,428<br><br>Gains on Disposition of Assets<br><br><br><br>(4,973)<br><br><br><br>(22,666)<br><br><br><br>(4,728)<br><br><br><br>(28,106)<br><br>Gains on Disposition of Other Assets<br><br><br><br><br>(<br>1,509)<br><br><br><br><br>(974)<br><br><br><br><br>(<br>2,473<br>)<br><br><br><br><br>(<br>3,549<br>)<br><br>Impairment Charges, Net<br><br><br><br><br>—<br><br><br><br>—<br><br><br><br><br>—<br><br><br><br><br>12,474<br><br>Unrealized Loss (Gain) on Investment Securities<br><br><br><br><br>3,754<br><br><br><br>1,326<br><br><br><br><br>8,102<br><br><br><br><br>(<br>6,<br>894<br>)<br><br>Funds from Operations<br><br><br>$<br><br><br>9,<br>9<br>11<br><br><br>$<br><br><br>7,200<br><br><br>$<br><br><br>27,<br>497<br><br><br>$<br><br><br>1<br>7,361<br><br>Distributions to Preferred Stockholders<br><br><br><br><br>(1,19<br>5<br>)<br><br><br><br><br>(1,129)<br><br><br><br><br>(<br>3,586<br>)<br><br><br><br><br>(1,129)<br><br>Funds From Operations Attributable to Common Stockholders<br><br><br>$<br><br><br>8,<br>7<br>16<br><br><br>$<br><br><br>6,071<br><br><br>$<br><br><br>23,<br>9<br>11<br><br><br>$<br><br><br>1<br>6,232<br><br>Loss on Extinguishment of Debt<br><br><br><br><br>—<br><br><br><br>—<br><br><br><br><br>—<br><br><br><br><br>641<br><br>Amortization of Intangibles to Lease Income<br><br><br><br><br>507<br><br><br><br><br>(<br>86<br>)<br><br><br><br><br>1,485<br><br><br><br><br>(<br>820<br>)<br><br>Less: Effect of Dilutive Interest Related to 2025 Notes<br><br>(1)<br><br><br><br><br>(539)<br><br><br><br><br>—<br><br><br><br><br>—<br><br><br><br><br>—<br><br>Core Funds From Operations Attributable to Common<br>Stockholders<br><br><br>$<br><br><br>8,<br>684<br><br><br>$<br><br><br>5,<br>985<br><br><br>$<br><br><br>25,<br>396<br><br><br>$<br><br><br>1<br>6,053<br><br>Adjustments:<br><br><br><br><br><br><br><br><br><br><br><br><br><br>Straight<br>-<br>Line Rent Adjustment<br><br><br><br><br>(<br>600<br>)<br><br><br><br><br>(<br>669<br>)<br><br><br><br><br>(1,<br>645<br>)<br><br><br><br><br>(1,<br>844<br>)<br><br>COVID<br>-<br>19 Rent Repayments<br><br><br><br><br>26<br><br><br><br><br>84<br><br><br><br><br>79<br><br><br><br><br>73<br>8<br><br>Other Depreciation and Amortization<br><br><br><br><br>(<br>29<br>)<br><br><br><br><br>(154)<br><br><br><br><br>(<br>199<br>)<br><br><br><br><br>(528)<br><br><br>Amortization of Loan Costs<br>,<br>Discount on Convertible Debt<br>,<br>and Capitalized Interest<br><br><br><br><br>6<br>4<br><br><br><br><br>442<br><br><br><br><br>51<br>0<br><br><br><br><br>1,395<br><br>Non<br>-<br>Cash<br>Compensation<br><br><br><br><br>812<br><br><br><br><br>7<br>34<br><br><br><br><br>2,423<br><br><br><br><br>2,434<br><br>Non<br>-<br>Recurring G&A<br><br><br><br><br>—<br><br><br><br>—<br><br><br><br><br>—<br><br><br><br><br>15<br>5<br><br>Adjusted Funds From Operations Attributable to Common<br>Stockholders<br><br><br>$<br><br><br>8,<br>9<br>57<br><br><br>$<br><br><br>6,<br>422<br><br><br>$<br><br><br>26,<br>5<br>64<br><br><br>$<br><br><br>1<br>8,403<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>FFO Attributable to Common Stockholders per Common Share<br>–<br><br>Diluted<br><br><br>$<br><br><br>0.4<br>1<br><br><br>$<br><br><br>0.34<br><br><br>$<br><br>1.<br>33<br><br><br>$<br><br>0.92<br><br>Core FFO Attributable to Common Stockholders per Common<br>Share<br>–<br><br>Diluted<br><br><br>$<br><br><br>0.4<br>7<br><br><br>$<br><br><br>0.34<br><br><br>$<br><br><br>1.<br>41<br><br><br>$<br><br><br>0.91<br><br>AFFO Attributable to Common Stockholders per Common Share<br>–<br><br>Diluted<br><br><br>$<br><br><br>0.4<br>9<br><br><br>$<br><br><br>0.36<br><br><br>$<br><br><br>1.<br>47<br><br><br>$<br><br><br>1.04<br><br><br>(1)<br><br><br>A total of 3.1 million shares representing the dilutive impact of the 2025 Notes, upon adoption of ASU 2020<br>-<br>06 effective January 1, 2022,<br>were included in the computation of diluted net income per share attributable to common stockholders for the three mon<br>ths ended September<br>30, 2022.<br><br>A total of 3.1 million shares representing the dilutive impact of the 2025 Notes, were not included in the computation of dil<br>uted net income<br>per share attributable to common stockholders for the nine months ended<br>September 30, 2022 because they were antidilutive to the net income<br>of under $2.6 million<br>.. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>16<br>Non<br>-<br>GAAP Financial Measures<br>CTO Realty Growth, Inc.<br><br>Non<br>-<br>GAAP Financial Measures<br><br>Reconciliation of Net Debt to Pro Forma EBITDA<br><br>(Unaudited)<br><br>(In thousands)<br><br><br><br><br><br><br><br><br>Three Months Ended<br>September<br><br>3<br>0<br>, 2022<br><br>Net Income Attributable to the Company<br><br>$<br><br>4,<br>817<br><br>Depreciation and Amortization<br>of Real Estate<br><br><br>7,<br>283<br><br>Gain<br><br>on Disposition of Assets<br><br><br>(4,9<br>73)<br><br>Gain<br><br>on Disposition of Other Assets<br><br><br><br>(<br>1,509)<br><br>Unrealized Loss on Investment Securities<br><br><br><br>3,754<br><br>Distributions to Preferred Stockholders<br><br><br>(1<br>,19<br>5)<br><br>Straight<br>-<br>Line Rent Adjustment<br><br><br><br>(<br>600)<br><br>Amortization of Intangibles to Lease Income<br><br><br>507<br><br>Other<br>Non<br>-<br>Cash<br><br>Amortization<br><br><br><br>(<br>29<br>)<br><br>Amortization of Loan Costs and Discount on Convertible Debt<br><br><br><br>6<br>4<br><br>Non<br>-<br>Cash Compensation<br><br><br><br>812<br><br>Interest Expense, Net of Amortization of Loan Costs and Discount on Convertible Debt<br><br><br><br>2,<br>819<br><br>EBITDA<br><br>$<br><br>1<br>1,<br>750<br><br><br><br><br><br>Annualized EBITDA<br><br>$<br><br>4<br>7,000<br><br>Pro Forma Annualized Impact of Current Quarter Acquisitions and Dispositions, Net<br>(1)<br><br><br>3,<br>834<br><br>Pro Forma EBITDA<br><br>$<br><br>50,<br>834<br><br><br><br><br>Total Long<br>-<br>Term Debt<br><br><br>3<br>70,248<br><br>Financing Costs, Net of Accumulated Amortization<br><br><br>1,<br>682<br><br>Unamortized Convertible Debt<br>Discount<br><br><br>4<br>04<br><br>Cash & Cash Equivalents<br><br><br>(<br>9,532)<br><br>Restricted Cash<br><br><br>(<br>37,292)<br><br>Net Debt<br><br>$<br><br>3<br>25,510<br><br><br><br><br>Net Debt to Pro Forma EBITDA<br><br><br>6.<br>4<br>x<br><br><br><br><br>(1)<br><br><br>Reflects the pro forma annualized impact on Annualized EBITDA of the Company’s acquisition and disposition activity during th<br>e three<br>months ended<br>September<br><br>30<br>, 2022. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Capitalization & Dividends<br>$ and shares outstanding in thousands, except per share data.<br>Equity Capitalization<br>Common Shares Outstanding<br>18,797<br>Common Share Price<br>$18.74<br>Total Common Equity Market Capitalization<br>$352,249<br>Series A Preferred Shares Outstanding<br>3,000<br>Series A Preferred Par Value Per Share<br>$25.00<br>Series A Preferred Par Value<br>$75,000<br>Total Equity Capitalization<br>$427,249<br>Debt Capitalization<br>Total Debt Outstanding<br>$372,334<br>Total Capitalization<br>$799,583<br>Cash, Restricted Cash & Cash Equivalents<br>$46,825<br>Total Enterprise Value<br>$752,758<br>Dividends Paid<br>Common<br>Preferred<br>Q4 2021<br>$0.33<br>$0.40<br>Q1 2022<br>$0.36<br>$0.40<br>Q2 2022<br>$0.37<br>$0.40<br>Q3 2022<br>$0.38<br>$0.40<br>Trailing Twelve Months Q3 2022<br>$1.45<br>$1.59<br>Q3 2022 Core FFO Per Diluted Share<br>$0.47<br>Q3 2022 AFFO Per Diluted Share<br>$0.49<br>Q3 2022 Core FFO Payout Ratio<br>80.9%<br>Q3 2022 AFFO Payout Ratio<br>77.6%<br>Dividend Yield<br>Q3 2022<br>$0.38<br>$0.40<br>Annualized Q3 2022 Dividend<br>$1.52<br>$1.59<br>Price Per Share as of September 30, 2022<br>$18.74<br>$21.96<br>Implied Dividend Yield<br>8.1%<br>7.3%<br>17 | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Debt Summary<br>$ in thousands.<br>(1)<br>See reconciliation as part of Non<br>-<br>GAAP Financial Measures in the Company’s Third Quarter 2022 Earnings Release.<br>Indebtedness Outstanding<br>Face Value<br>Interest Rate<br>Maturity Date<br>Type<br>Revolving Credit Facility<br>$38,500<br>SOFR + 10 bps + [1.25%<br>–<br>2.20%]<br>January 2027<br>Variable<br>2025 Convertible Senior Notes<br>51,034<br>3.88%<br>April 2025<br>Fixed<br>2026 Term Loan<br>65,000<br>SOFR + 10 bps + [1.25%<br>–<br>2.20%]<br>March 2026<br>Fixed<br>2027 Term Loan<br>100,000<br>SOFR + 10 bps + [1.25%<br>–<br>2.20%]<br>January 2027<br>Fixed<br>2028 Term Loan<br>100,000<br>SOFR + 10 bps + [1.20%<br>–<br>2.15%]<br>January 2028<br>Fixed<br>Mortgage Note<br>17,800<br>4.06%<br>August 2026<br>Fixed<br>Total /<br>Wtd<br>.. Avg.<br>$372,334<br>3.44%<br>Fixed vs. Variable<br>Face Value<br>Interest Rate<br>% of Total Debt<br>Total Fixed Rate Debt<br>333,834<br>3.32%<br>90%<br>Total Variable Rate Debt<br>38,500<br>SOFR + 10 bps + [1.25%<br>–<br>2.20%]<br>10%<br>Total /<br>Wtd<br>.. Avg.<br>$372,334<br>3.44%<br>100%<br>Leverage Metrics<br>Face Value of Debt<br>$372,334<br>Cash, Restricted Cash & Cash Equivalents<br>($46,825)<br>Net Debt<br>$325,509<br>Total Enterprise Value<br>$752,758<br>Net Debt to Total Enterprise Value<br>43%<br>Net Debt to Pro Forma EBITDA<br>(1)<br>6.4x<br>18 | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Year<br>-<br>to<br>-<br>Date Investments<br>$ in thousands.<br>Property Acquisitions<br>Market<br>Type<br>Date<br>Acquired<br>Square<br>Feet<br>Price<br>Occupancy<br>At<br>Acq<br>..<br>Price Plaza Shopping Center<br>–<br>Katy, TX<br>Houston, TX<br>Multi<br>-<br>Tenant Retail<br>March 2022<br>205,813<br>$39,100<br>95%<br>Madison Yards<br>–<br>Atlanta, GA<br>Atlanta, GA<br>Multi<br>-<br>Tenant Retail<br>July 2022<br>162,521<br>$80,200<br>99%<br>Total Acquisitions<br>368,334<br>$119,300<br>19<br>Structured Investments<br>Market<br>Type<br>Date<br>Originated<br>Capital<br>Commitment<br>Structure<br>Phase II of The Exchange at Gwinnett<br>–<br>Buford,<br>GA<br>Atlanta, GA<br>Retail Outparcels<br>January 2022<br>$8,700<br>First Mortgage<br>Watters Creek at Montgomery Farm<br>–<br>Allen, TX<br>Dallas, TX<br>Grocery Anchored Retail<br>April 2022<br>$30,000<br>Preferred Equity<br>WaterStar Orlando<br>–<br>Kissimmee, FL<br>Orlando, FL<br>Retail Outparcels<br>April 2022<br>$19,000<br>First Mortgage<br>Improvement Loan at Ashford Lane<br>–<br>Atlanta, GA<br>Atlanta, GA<br>Tenant Improvement<br>Loan<br>May 2022<br>$1,500<br>Landlord<br>Financing<br>Total Structured Investments<br>$59,200 | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Property<br>Market<br>Type<br>Date Sold<br>Square<br>Feet<br>Price<br>Gain<br>(Loss)<br>Party City<br>–<br>Oceanside, NY<br>New York, NY<br>Single Tenant Retail<br>January 2022<br>15,500<br>$6,949<br>($60)<br>The Carpenter Hotel<br>–<br>Austin, TX<br>Austin, TX<br>Hospitality Ground<br>Lease<br>March 2022<br>73,508<br>17,095<br>(178)<br>Westland Gateway Plaza<br>–<br>Hialeah, FL<br>Miami, FL<br>Multi<br>-<br>Tenant Retail<br>Master Lease<br>July 2022<br>108,029<br>$22,150<br>$986<br>Firebirds Wood Fire Grill<br>–<br>Jacksonville, FL<br>Jacksonville, FL<br>Single Tenant Retail<br>September<br>2022<br>6,948<br>$5,513<br>$931<br>Chuy’s<br>–<br>Jacksonville, FL<br>Jacksonville, FL<br>Single Tenant Retail<br>September<br>2022<br>7,950<br>$5,825<br>($445)<br>245 Riverside<br>–<br>Jacksonville, FL<br>Jacksonville, FL<br>Multi<br>-<br>Tenant Office<br>September<br>2022<br>136,853<br>$23,550<br>$3,501<br>Total Dispositions<br>348,788<br>$81,082<br>$4,735<br>Year<br>-<br>to<br>-<br>Date Dispositions<br>20<br>$ in thousands. | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Portfolio Detail<br>21<br>Property<br>Type<br>Year<br>Acquired/<br>Developed<br>Square<br>Feet<br>In<br>-<br>Place<br>Occupancy<br>Leased<br>Occupancy<br>Cash<br>ABR<br>Cash ABR<br>PSF<br>Atlanta, GA<br>Ashford Lane<br>Multi<br>-<br>Tenant Retail<br>2020<br>277,407<br>78%<br>86%<br>$6,790<br>$24.48<br>Madison Yards<br>Multi<br>-<br>Tenant Retail<br>2022<br>162,521<br>99%<br>99%<br>$4,913<br>$30.23<br>The Exchange at Gwinnett<br>Multi<br>-<br>Tenant Retail<br>2021<br>69,266<br>92%<br>96%<br>2,044<br>$29.51<br>Total Atlanta, GA<br>509,194<br>87%<br>91%<br>$13,747<br>$27.00<br>Dallas, TX<br>The Shops at Legacy<br>Multi<br>-<br>Tenant Mixed<br>Use<br>2021<br>237,366<br>92%<br>96%<br>$7,080<br>$29.83<br>Westcliff Shopping Center<br>Multi<br>-<br>Tenant Retail<br>2017<br>134,693<br>61%<br>61%<br>566<br>$4.20<br>Total Dallas, TX<br>372,059<br>81%<br>83%<br>$7,645<br>$20.55<br>Raleigh, NC<br>Beaver Creek Crossings<br>Multi<br>-<br>Tenant Retail<br>2021<br>321,977<br>94%<br>98%<br>$5,143<br>$15.97<br>Phoenix, AZ<br>Crossroads Town Center<br>Multi<br>-<br>Tenant Retail<br>2020<br>244,843<br>100%<br>100%<br>$4,955<br>$20.24<br>Jacksonville, FL<br>The Strand at St. Johns Town<br>Center<br>Multi<br>-<br>Tenant Retail<br>2019<br>210,973<br>91%<br>95%<br>$4,657<br>$22.07<br>Albuquerque, NM<br>Fidelity<br>Single Tenant Office<br>2018<br>210,067<br>100%<br>100%<br>$3,567<br>$16.98<br>Houston, TX<br>Price Plaza Shopping Center<br>Multi<br>-<br>Tenant Retail<br>2022<br>205,813<br>95%<br>95%<br>$3,164<br>$15.37<br>$ in thousands, except per square foot data. | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Portfolio Detail<br>$ in thousands, except per square foot data.<br>22<br>Property<br>Type<br>Year<br>Acquired/<br>Developed<br>Square<br>Feet<br>In<br>-<br>Place<br>Occupancy<br>Leased<br>Occupancy<br>Cash<br>ABR<br>Cash ABR<br>PSF<br>Santa Fe, NM<br>125 Lincoln & 150 Washington<br>Multi<br>-<br>Tenant Mixed<br>Use<br>2021<br>137,209<br>75%<br>84%<br>$2,797<br>$20.38<br>Tampa, FL<br>Sabal Pavilion<br>Single Tenant Office<br>2020<br>120,500<br>100%<br>100%<br>$2,265<br>$18.80<br>Salt Lake City, UT<br>Jordan Landing<br>Multi<br>-<br>Tenant Retail<br>2021<br>170,996<br>100%<br>100%<br>$1,670<br>$9.77<br>Washington, DC<br>General Dynamics<br>Single Tenant Office<br>2019<br>64,319<br>100%<br>100%<br>$1,623<br>$25.24<br>Las Vegas, NV<br>Eastern Commons<br>Multi<br>-<br>Tenant Retail<br>2021<br>133,304<br>100%<br>100%<br>$1,569<br>$11.77<br>Daytona Beach, FL<br>Landshark Bar & Grill<br>Single Tenant Retail<br>2018<br>6,264<br>100%<br>100%<br>$705<br>$112.59<br>Crabby's<br>Oceanside<br>Single Tenant Retail<br>2018<br>5,780<br>100%<br>100%<br>280<br>$48.46<br>12,044<br>100%<br>100%<br>$985<br>$81.81<br>Orlando, FL<br>Winter Park Office<br>Multi<br>-<br>Tenant Mixed<br>Use<br>2021<br>30,296<br>84%<br>100%<br>$350<br>$11.55<br>Total Portfolio<br>2,743,594<br>92%<br>94%<br>$54,138<br>$19.73 | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Leasing Summary<br>$ and square feet in thousands, except per square foot data.<br>23<br>Renewals and Extensions<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Q4 2022<br>2022<br>Leases<br>8<br>5<br>9<br>22<br>Square Feet<br>32.5<br>10.2<br>31.8<br>74.5<br>New Cash Rent PSF<br>$31.57<br>$29.28<br>$29.62<br>$30.42<br>Tenant Improvements<br>$368<br>$0<br>$0<br>$368<br>Leasing Commissions<br>$36<br>$28<br>$77<br>$141<br>Weighted Average Term<br>6.2<br>3.6<br>5.8<br>5.7<br>New Leases<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Q4 2022<br>2022<br>Leases<br>10<br>7<br>7<br>24<br>Square Feet<br>24.4<br>30.9<br>43.4<br>98.7<br>New Cash Rent PSF<br>$31.32<br>$32.66<br>36.14<br>$33.86<br>Tenant Improvements<br>$691<br>$2,721<br>$3,025<br>$6,437<br>Leasing Commissions<br>$335<br>$298<br>$1,033<br>$1,666<br>Weighted Average Term<br>8.9<br>12.2<br>8.7<br>9.8<br>All Leases Summary<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Q4 2022<br>2022<br>Leases<br>18<br>12<br>16<br>46<br>Square Feet<br>56.9<br>41.1<br>75.2<br>173.2<br>New Cash Rent PSF<br>$31.46<br>$31.82<br>$33.39<br>$32.38<br>Tenant Improvements<br>$1,059<br>$2,721<br>$3,025<br>$6,805<br>Leasing Commissions<br>$371<br>$326<br>$1,110<br>$1,807<br>Weighted Average Term<br>6.6<br>10.3<br>7.6<br>7.9 | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Lease Expiration Schedule<br>$ and square feet in thousands.<br>24<br>Year<br>Leases Expiring<br>Expiring SF<br>% of Total<br>Cash ABR<br>% of Total<br>2022<br>7<br>21<br>0.8%<br>310<br>0.6%<br>2023<br>23<br>150<br>5.5%<br>3,468<br>6.4%<br>2024<br>22<br>75<br>2.7%<br>2,111<br>3.9%<br>2025<br>19<br>108<br>3.9%<br>3,160<br>5.8%<br>2026<br>37<br>397<br>14.5%<br>7,272<br>13.4%<br>2027<br>40<br>382<br>13.9%<br>5,750<br>10.6%<br>2028<br>21<br>463<br>16.9%<br>9,134<br>16.9%<br>2029<br>27<br>258<br>9.4%<br>5,353<br>9.9%<br>2030<br>26<br>130<br>4.7%<br>3,304<br>6.1%<br>2031<br>26<br>88<br>3.2%<br>2,689<br>5.0%<br>Thereafter<br>33<br>446<br>16.2%<br>11,586<br>21.4%<br>Total<br>281<br>2,518<br>91.8%<br>54,138<br>100.0%<br>Vacant<br>226<br>8.2%<br>Total<br>2,744 | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Top Tenant Summary<br>25<br>Tenant/Concept<br>Credit<br>Rating<br>(1)<br>Leases<br>Leased<br>Square Feet<br>% of Total<br>Cash ABR<br>% of Total<br>Fidelity<br>A+<br>1<br>210<br>7.7%<br>3,567<br>6.6%<br>Ford Motor Credit<br>BB+<br>1<br>121<br>4.4%<br>2,265<br>4.2%<br>WeWork<br>CCC+<br>1<br>59<br>2.1%<br>1,977<br>3.7%<br>General Dynamics<br>AA<br>-<br>1<br>64<br>2.3%<br>1,623<br>3.0%<br>At Home<br>B<br>-<br>2<br>192<br>7.0%<br>1,576<br>2.9%<br>Ross/dd’s DISCOUNT<br>BBB+<br>4<br>106<br>3.8%<br>1,334<br>2.5%<br>Best Buy<br>BBB+<br>2<br>82<br>3.0%<br>1,224<br>2.3%<br>Darden Restaurants<br>BBB<br>3<br>27<br>1.0%<br>1,207<br>2.2%<br>AMC<br>CCC<br>+<br>1<br>39<br>1.4%<br>1,102<br>2.0%<br>Publix<br>Not Rated<br>1<br>54<br>2.0%<br>1,076<br>2.0%<br>Harkins Theatres<br>Not Rated<br>1<br>56<br>2.0%<br>961<br>1.8%<br>Regal<br>Cinemas<br>D<br>1<br>45<br>1.6%<br>948<br>1.8%<br>The Hall at Ashford Lane<br>Not Rated<br>1<br>17<br>0.6%<br>877<br>1.6%<br>Hobby Lobby<br>Not Rated<br>1<br>55<br>2.0%<br>715<br>1.3%<br>Landshark Bar & Grill<br>Not Rated<br>1<br>6<br>0.2%<br>705<br>1.3%<br>Burlington<br>BB+<br>1<br>47<br>1.7%<br>699<br>1.3%<br>PNC Bank<br>A<br>2<br>10<br>0.4%<br>684<br>1.3%<br>TJ Maxx/HomeGoods/Marshalls<br>A<br>1<br>50<br>1.8%<br>526<br>1.0%<br>Bob’s Discount Furniture<br>Not Rated<br>1<br>42<br>1.5%<br>509<br>0.9%<br>Seafood City<br>Not Rated<br>1<br>32<br>1.2%<br>483<br>0.9%<br>Other<br>253<br>1,203<br>43.8%<br>30,080<br>55.6%<br>Total<br>281<br>2,518<br>91.8%<br>54,138<br>100.0%<br>Vacant<br>226<br>8.2%<br>Total<br>2,744<br>100.0%<br>$ and square feet in thousands.<br>(1)<br>A credit rated, or investment grade rated tenant (rating of BBB<br>-<br>, NAIC<br>-<br>2 or Baa3 or higher) is a tenant or the parent of a t<br>enant with a credit rating from S&P Global Ratings, Moody’s Investors Service, Fitch Ratings or the<br>National Association of Insurance Commissioners (NAIC). | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Geographic Diversification<br>26<br>Markets<br>Leases<br>Square Feet<br>% of Total<br>Cash ABR<br>% of Total<br>Atlanta, GA<br>3<br>509<br>18.6%<br>13,747<br>25.4%<br>Dallas, TX<br>2<br>372<br>13.6%<br>7,645<br>14.1%<br>Raleigh, NC<br>1<br>322<br>11.7%<br>5,143<br>9.5%<br>Jacksonville, FL<br>1<br>211<br>7.7%<br>4,657<br>8.6%<br>Phoenix, AZ<br>1<br>245<br>8.9%<br>4,955<br>9.2%<br>Albuquerque, NM<br>1<br>210<br>7.7%<br>3,567<br>6.6%<br>Houston, TX<br>1<br>206<br>7.5%<br>3,164<br>5.8%<br>Santa Fe, NM<br>1<br>137<br>5.0%<br>2,797<br>5.2%<br>Tampa, FL<br>1<br>121<br>4.4%<br>2,265<br>4.2%<br>Salt Lake City, UT<br>1<br>171<br>6.2%<br>1,670<br>3.1%<br>Las Vegas, NV<br>1<br>133<br>4.9%<br>1,569<br>2.9%<br>Washington, DC<br>1<br>64<br>2.3%<br>1,623<br>3.0%<br>Daytona Beach, FL<br>2<br>12<br>0.4%<br>985<br>1.8%<br>Orlando, FL<br>1<br>30<br>1.1%<br>350<br>0.6%<br>Total<br>18<br>2,744<br>100.0%<br>54,138<br>100.0%<br>States<br>Properties<br>Square Feet<br>% of Total<br>Cash ABR<br>% of Total<br>Georgia<br>3<br>509<br>18.6%<br>13,747<br>25.4%<br>Texas<br>3<br>578<br>21.1%<br>10,810<br>20.0%<br>Florida<br>5<br>374<br>13.6%<br>8,257<br>15.3%<br>New Mexico<br>2<br>347<br>12.7%<br>6,364<br>11.8%<br>North Carolina<br>1<br>322<br>11.7%<br>5,143<br>9.5%<br>Arizona<br>1<br>245<br>8.9%<br>4,955<br>9.2%<br>Utah<br>1<br>171<br>6.2%<br>1,670<br>3.1%<br>Nevada<br>1<br>133<br>4.9%<br>1,569<br>2.9%<br>Virginia<br>1<br>64<br>2.3%<br>1,623<br>3.0%<br>Total<br>18<br>2,744<br>100.0%<br>54,138<br>100.0%<br>$ and square feet in thousands. | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Other Assets<br>$ and shares outstanding in thousands, except per share data.<br>27<br>Investment Securities<br>Shares & Operating<br>Partnership Units<br>Owned<br>Value Per Share<br>September 30, 2022<br>Estimated<br>Value<br>Annualized<br>Dividend Per<br>Share<br>In<br>-<br>Place Annualized<br>Dividend Income<br>Alpine Income Property Trust<br>2,174<br>$16.22<br>$35,260<br>$1.10<br>$2,391<br>Structured Investments<br>Type<br>Origination<br>Date<br>Maturity<br>Date<br>Original<br>Loan Amount<br>Amount<br>Outstanding<br>Interest<br>Rate<br>4311 Maple Avenue, Dallas, TX<br>Mortgage Note<br>October 2020<br>April 2023<br>$400<br>$400<br>7.50%<br>110 N. Beach St., Daytona Beach, FL<br>Mortgage Note<br>June 2021<br>December 2022<br>364<br>364<br>10.00%<br>Phase II of The Exchange at Gwinnett<br>Construction Loan<br>January 2022<br>January 2024<br>8,700<br>324<br>7.25%<br>Watters Creek at Montgomery Farm<br>Preferred Investment<br>April 2022<br>April 2025<br>30,000<br>30,000<br>8.50%<br>WaterStar Orlando<br>Construction Loan<br>April 2022<br>November 2022<br>19,000<br>14,249<br>12.00%<br>Improvement Loan at Ashford Lane<br>Improvement Loan<br>May 2022<br>April 2025<br>1,500<br>1,053<br>12.00%<br>Total Structured Investments<br>$59,964<br>$46,390<br>Subsurface Interests<br>Acreage<br>Estimated Value<br>Acres Available for Sale<br>355,000 acres<br>$4,500<br>Mitigation Credits and Rights<br>State Credits<br>Federal Credits<br>Total Book Value<br>Mitigation Credits<br>32.0<br>18.8<br>$2,800<br>Mitigation Credit Rights<br>242.0<br>156.4<br>20,000<br>Total Mitigation Credits<br>274.0<br>175.2<br>$22,800 | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>2022 Guidance<br>$ and shares outstanding in millions, except per share data.<br>28<br>Low<br>High<br>Acquisition & Structured Investments<br>$271<br>-<br>$271<br>Target Initial Investment Cash Yield<br>7.25%<br>-<br>7.25%<br>Dispositions<br>$81<br>-<br>$83<br>Target Disposition Cash Yield<br>6.15%<br>-<br>6.25%<br>Core FFO Per Diluted Share<br>$1.71<br>-<br>$1.74<br>AFFO Per Diluted Share<br>$1.79<br>-<br>$1.82<br>Weighted Average Diluted Shares Outstanding<br>18.2<br>-<br>18.2<br>The<br>Company<br>has<br>increased<br>its<br>outlook<br>for<br>2022<br>to<br>take<br>into<br>account<br>the<br>Company’s<br>year<br>-<br>to<br>-<br>date<br>performance<br>and<br>revised<br>expectations<br>regarding<br>the<br>Company’s<br>investment<br>activities,<br>forecasted<br>capital<br>markets<br>transactions,<br>leasing<br>activity,<br>and<br>other<br>significant<br>assumptions<br>.. | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Contact Information & Research Coverage<br>Contact Information<br>Corporate Office<br>Locations<br>Investor Relations<br>Transfer Agent<br>New York<br>Stock Exchange<br>369 N. New York Ave., 3<br>rd<br>Floor<br>Winter Park, FL 32789<br>1140 N. Williamson Blvd., Suite 140<br>Daytona Beach, FL 32114<br>Matt Partridge<br>SVP, CFO & Treasurer<br>(407) 904<br>-<br>3324<br>mpartridge@ctoreit.com<br>Computershare Trust<br>Company, N.A.<br>(800) 368<br>-<br>5948<br>www.computershare.com<br>Ticker Symbol: CTO<br>www.ctoreit.com<br>Research Analyst Coverage<br>Institution<br>Coverage Analyst<br>Email<br>Phone<br>B. Riley<br>Craig Kucera<br>craigkucera@brileyfin.com<br>(703) 312<br>-<br>1635<br>BTIG<br>Michael Gorman<br>mgorman@btig.com<br>(212) 738<br>-<br>6138<br>Compass Point<br>Floris van Dijkum<br>fvandijkum@compasspointllc.com<br>(646) 757<br>-<br>2621<br>EF Hutton<br>Guarav<br>Mehta<br>gmehta@efhuttongroup.com<br>(212) 970<br>-<br>5261<br>Janney<br>Rob Stevenson<br>robstevenson@janney.com<br>(646) 840<br>-<br>3217<br>Jones Research<br>Jason Stewart<br>jstewart@jonestrading.com<br>(646) 465<br>-<br>9932<br>Raymond James<br>RJ Milligan<br>rjmilligan@raymondjames.com<br>(727) 567<br>-<br>2585<br>29 | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Safe Harbor<br>30<br>Certain<br>statements<br>contained<br>in<br>this<br>presentation<br>(other<br>than<br>statements<br>of<br>historical<br>fact)<br>are<br>forward<br>-<br>looking<br>statements<br>within<br>the<br>meaning<br>of<br>Section<br>27<br>A<br>of<br>the<br>Securities<br>Act<br>of<br>1933<br>,<br>as<br>amended<br>and<br>Section<br>21<br>E<br>of<br>the<br>Securities<br>Exchange<br>Act<br>of<br>1934<br>,<br>as<br>amended<br>..<br>Forward<br>-<br>looking<br>statements<br>can<br>typically<br>be<br>identified<br>by<br>words<br>such<br>as<br>“believe,”<br>“estimate,”<br>“expect,”<br>“intend,”<br>“anticipate,”<br>“will,”<br>“could,”<br>“may,”<br>“should,”<br>“plan,”<br>“potential,”<br>“predict,”<br>“forecast,”<br>“project,”<br>and<br>similar<br>expressions,<br>as<br>well<br>as<br>variations<br>or<br>negatives<br>of<br>these<br>words<br>..<br>Although<br>forward<br>-<br>looking<br>statements<br>are<br>made<br>based<br>upon<br>management’s<br>present<br>expectations<br>and<br>reasonable<br>beliefs<br>concerning<br>future<br>developments<br>and<br>their<br>potential<br>effect<br>upon<br>the<br>Company,<br>a<br>number<br>of<br>factors<br>could<br>cause<br>the<br>Company’s<br>actual<br>results<br>to<br>differ<br>materially<br>from<br>those<br>set<br>forth<br>in<br>the<br>forward<br>-<br>looking<br>statements<br>..<br>Such<br>factors<br>may<br>include,<br>but<br>are<br>not<br>limited<br>to<br>:<br>the<br>Company’s<br>ability<br>to<br>remain<br>qualified<br>as<br>a<br>REIT<br>;<br>the<br>Company’s<br>exposure<br>to<br>U<br>..<br>S<br>..<br>federal<br>and<br>state<br>income<br>tax<br>law<br>changes,<br>including<br>changes<br>to<br>the<br>REIT<br>requirements<br>;<br>general<br>adverse<br>economic<br>and<br>real<br>estate<br>conditions<br>;<br>macroeconomic<br>and<br>geopolitical<br>factors,<br>including<br>but<br>not<br>limited<br>to<br>inflationary<br>pressures,<br>interest<br>rate<br>volatility,<br>global<br>supply<br>chain<br>disruptions,<br>and<br>ongoing<br>geopolitical<br>war<br>;<br>the<br>ultimate<br>geographic<br>spread,<br>severity<br>and<br>duration<br>of<br>pandemics<br>such<br>as<br>the<br>COVID<br>-<br>19<br>Pandemic<br>and<br>its<br>variants,<br>actions<br>that<br>may<br>be<br>taken<br>by<br>governmental<br>authorities<br>to<br>contain<br>or<br>address<br>the<br>impact<br>of<br>such<br>pandemics,<br>and<br>the<br>potential<br>negative<br>impacts<br>of<br>such<br>pandemics<br>on<br>the<br>global<br>economy<br>and<br>the<br>Company’s<br>financial<br>condition<br>and<br>results<br>of<br>operations<br>;<br>the<br>inability<br>of<br>major<br>tenants<br>to<br>continue<br>paying<br>their<br>rent<br>or<br>obligations<br>due<br>to<br>bankruptcy,<br>insolvency<br>or<br>a<br>general<br>downturn<br>in<br>their<br>business<br>;<br>the<br>loss<br>or<br>failure,<br>or<br>decline<br>in<br>the<br>business<br>or<br>assets<br>of<br>PINE<br>;<br>the<br>completion<br>of<br>1031<br>exchange<br>transactions<br>;<br>the<br>availability<br>of<br>investment<br>properties<br>that<br>meet<br>the<br>Company’s<br>investment<br>goals<br>and<br>criteria<br>;<br>the<br>uncertainties<br>associated<br>with<br>obtaining<br>required<br>governmental<br>permits<br>and<br>satisfying<br>other<br>closing<br>conditions<br>for<br>planned<br>acquisitions<br>and<br>sales<br>;<br>and<br>the<br>uncertainties<br>and<br>risk<br>factors<br>discussed<br>in<br>the<br>Company’s<br>Annual<br>Report<br>on<br>Form<br>10<br>-<br>K<br>for<br>the<br>fiscal<br>year<br>ended<br>December<br>31<br>,<br>2021<br>and<br>other<br>risks<br>and<br>uncertainties<br>discussed<br>from<br>time<br>to<br>time<br>in<br>the<br>Company’s<br>filings<br>with<br>the<br>U<br>..<br>S<br>..<br>Securities<br>and<br>Exchange<br>Commission<br>..<br>There<br>can<br>be<br>no<br>assurance<br>that<br>future<br>developments<br>will<br>be<br>in<br>accordance<br>with<br>management’s<br>expectations<br>or<br>that<br>the<br>effect<br>of<br>future<br>developments<br>on<br>the<br>Company<br>will<br>be<br>those<br>anticipated<br>by<br>management<br>..<br>Readers<br>are<br>cautioned<br>not<br>to<br>place<br>undue<br>reliance<br>on<br>these<br>forward<br>-<br>looking<br>statements,<br>which<br>speak<br>only<br>as<br>of<br>the<br>date<br>of<br>this<br>presentation<br>..<br>The<br>Company<br>undertakes<br>no<br>obligation<br>to<br>update<br>the<br>information<br>contained<br>in<br>this<br>press<br>release<br>to<br>reflect<br>subsequently<br>occurring<br>events<br>or<br>circumstances<br>.. | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Non<br>-<br>GAAP Financial Measures<br>31<br>Our<br>reported<br>results<br>are<br>presented<br>in<br>accordance<br>with<br>accounting<br>principles<br>generally<br>accepted<br>in<br>the<br>United<br>States<br>of<br>America<br>(“GAAP”)<br>..<br>We<br>also<br>disclose<br>Funds<br>From<br>Operations<br>(“FFO”),<br>Core<br>Funds<br>From<br>Operations<br>(“Core<br>FFO”),<br>Adjusted<br>Funds<br>From<br>Operations<br>(“AFFO”),<br>Pro<br>Forma<br>Earnings<br>Before<br>Interest,<br>Taxes,<br>Depreciation<br>and<br>Amortization<br>(“Pro<br>Forma<br>EBITDA”),<br>and<br>Same<br>-<br>Property<br>Net<br>Operating<br>Income<br>(“Same<br>-<br>Property<br>NOI”),<br>each<br>of<br>which<br>are<br>non<br>-<br>GAAP<br>financial<br>measures<br>..<br>We<br>believe<br>these<br>non<br>-<br>GAAP<br>financial<br>measures<br>are<br>useful<br>to<br>investors<br>because<br>they<br>are<br>widely<br>accepted<br>industry<br>measures<br>used<br>by<br>analysts<br>and<br>investors<br>to<br>compare<br>the<br>operating<br>performance<br>of<br>REITs<br>..<br>FFO,<br>Core<br>FFO,<br>AFFO,<br>Pro<br>Forma<br>EBITDA,<br>and<br>Same<br>-<br>Property<br>NOI<br>do<br>not<br>represent<br>cash<br>generated<br>from<br>operating<br>activities<br>and<br>are<br>not<br>necessarily<br>indicative<br>of<br>cash<br>available<br>to<br>fund<br>cash<br>requirements<br>;<br>accordingly,<br>they<br>should<br>not<br>be<br>considered<br>alternatives<br>to<br>net<br>income<br>as<br>a<br>performance<br>measure<br>or<br>cash<br>flows<br>from<br>operating<br>activities<br>as<br>reported<br>on<br>our<br>statement<br>of<br>cash<br>flows<br>as<br>a<br>liquidity<br>measure<br>and<br>should<br>be<br>considered<br>in<br>addition<br>to,<br>and<br>not<br>in<br>lieu<br>of,<br>GAAP<br>financial<br>measures<br>..<br>We<br>compute<br>FFO<br>in<br>accordance<br>with<br>the<br>definition<br>adopted<br>by<br>the<br>Board<br>of<br>Governors<br>of<br>the<br>National<br>Association<br>of<br>Real<br>Estate<br>Investment<br>Trusts,<br>or<br>NAREIT<br>..<br>NAREIT<br>defines<br>FFO<br>as<br>GAAP<br>net<br>income<br>or<br>loss<br>adjusted<br>to<br>exclude<br>extraordinary<br>items<br>(as<br>defined<br>by<br>GAAP),<br>net<br>gain<br>or<br>loss<br>from<br>sales<br>of<br>depreciable<br>real<br>estate<br>assets,<br>impairment<br>write<br>-<br>downs<br>associated<br>with<br>depreciable<br>real<br>estate<br>assets<br>and<br>real<br>estate<br>related<br>depreciation<br>and<br>amortization,<br>including<br>the<br>pro<br>rata<br>share<br>of<br>such<br>adjustments<br>of<br>unconsolidated<br>subsidiaries<br>..<br>The<br>Company<br>also<br>excludes<br>the<br>gains<br>or<br>losses<br>from<br>sales<br>of<br>assets<br>incidental<br>to<br>the<br>primary<br>business<br>of<br>the<br>REIT<br>which<br>specifically<br>include<br>the<br>sales<br>of<br>mitigation<br>credits,<br>impact<br>fee<br>credits,<br>subsurface<br>sales,<br>and<br>land<br>sales,<br>in<br>addition<br>to<br>the<br>mark<br>-<br>to<br>-<br>market<br>of<br>the<br>Company’s<br>investment<br>securities<br>and<br>interest<br>related<br>to<br>the<br>2025<br>Convertible<br>Senior<br>Notes,<br>if<br>the<br>effect<br>is<br>dilutive<br>..<br>To<br>derive<br>Core<br>FFO,<br>we<br>modify<br>the<br>NAREIT<br>computation<br>of<br>FFO<br>to<br>include<br>other<br>adjustments<br>to<br>GAAP<br>net<br>income<br>related<br>to<br>gains<br>and<br>losses<br>recognized<br>on<br>the<br>extinguishment<br>of<br>debt,<br>amortization<br>of<br>above<br>-<br>and<br>below<br>-<br>market<br>lease<br>related<br>intangibles,<br>and<br>other<br>unforecastable<br>market<br>-<br>or<br>transaction<br>-<br>driven<br>non<br>-<br>cash<br>items<br>..<br>To<br>derive<br>AFFO,<br>we<br>further<br>modify<br>the<br>NAREIT<br>computation<br>of<br>FFO<br>and<br>Core<br>FFO<br>to<br>include<br>other<br>adjustments<br>to<br>GAAP<br>net<br>income<br>related<br>to<br>non<br>-<br>cash<br>revenues<br>and<br>expenses<br>such<br>as<br>straight<br>-<br>line<br>rental<br>revenue,<br>non<br>-<br>cash<br>compensation,<br>and<br>other<br>non<br>-<br>cash<br>amortization,<br>as<br>well<br>as<br>adding<br>back<br>the<br>interest<br>related<br>to<br>the<br>2025<br>Convertible<br>Senior<br>Notes,<br>if<br>the<br>effect<br>is<br>dilutive<br>..<br>Such<br>items<br>may<br>cause<br>short<br>-<br>term<br>fluctuations<br>in<br>net<br>income<br>but<br>have<br>no<br>impact<br>on<br>operating<br>cash<br>flows<br>or<br>long<br>-<br>term<br>operating<br>performance<br>..<br>We<br>use<br>AFFO<br>as<br>one<br>measure<br>of<br>our<br>performance<br>when<br>we<br>formulate<br>corporate<br>goals<br>..<br>To<br>derive<br>Pro<br>Forma<br>EBITDA,<br>GAAP<br>net<br>income<br>or<br>loss<br>is<br>adjusted<br>to<br>exclude<br>extraordinary<br>items<br>(as<br>defined<br>by<br>GAAP),<br>net<br>gain<br>or<br>loss<br>from<br>sales<br>of<br>depreciable<br>real<br>estate<br>assets,<br>impairment<br>write<br>-<br>downs<br>associated<br>with<br>depreciable<br>real<br>estate<br>assets<br>and<br>real<br>estate<br>related<br>depreciation<br>and<br>amortization,<br>including<br>the<br>pro<br>rata<br>share<br>of<br>such<br>adjustments<br>of<br>unconsolidated<br>subsidiaries,<br>non<br>-<br>cash<br>revenues<br>and<br>expenses<br>such<br>as<br>straight<br>-<br>line<br>rental<br>revenue,<br>amortization<br>of<br>deferred<br>financing<br>costs,<br>above<br>-<br>and<br>below<br>-<br>market<br>lease<br>related<br>intangibles,<br>non<br>-<br>cash<br>compensation,<br>and<br>other<br>non<br>-<br>cash<br>income<br>or<br>expense<br>..<br>Cash<br>interest<br>expense<br>is<br>also<br>excluded<br>from<br>Pro<br>Forma<br>EBITDA,<br>and<br>GAAP<br>net<br>income<br>or<br>loss<br>is<br>adjusted<br>for<br>the<br>annualized<br>impact<br>of<br>acquisitions,<br>dispositions<br>and<br>other<br>similar<br>activities<br>.. 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| © CTO Realty Growth, Inc. | ctoreit.com<br>Non<br>-<br>GAAP Financial Measures<br>32<br>To<br>derive<br>Same<br>-<br>Property<br>NOI,<br>GAAP<br>net<br>income<br>or<br>loss<br>attributable<br>to<br>the<br>Company<br>is<br>adjusted<br>to<br>exclude<br>extraordinary<br>items<br>(as<br>defined<br>by<br>GAAP),<br>gain<br>or<br>loss<br>on<br>disposition<br>of<br>assets,<br>gain<br>or<br>loss<br>on<br>extinguishment<br>of<br>debt,<br>impairment<br>charges,<br>and<br>depreciation<br>and<br>amortization,<br>including<br>the<br>pro<br>rata<br>share<br>of<br>such<br>adjustments<br>of<br>unconsolidated<br>subsidiaries,<br>if<br>any,<br>non<br>-<br>cash<br>revenues<br>and<br>expenses<br>such<br>as<br>above<br>-<br>and<br>below<br>-<br>market<br>lease<br>related<br>intangibles,<br>straight<br>-<br>line<br>rental<br>revenue,<br>and<br>other<br>non<br>-<br>cash<br>income<br>or<br>expense<br>..<br>Interest<br>expense,<br>general<br>and<br>administrative<br>expenses,<br>investment<br>and<br>other<br>income<br>or<br>loss,<br>income<br>tax<br>benefit<br>or<br>expense,<br>real<br>estate<br>operations<br>revenues<br>and<br>direct<br>cost<br>of<br>revenues,<br>management<br>fee<br>income,<br>and<br>interest<br>income<br>from<br>commercial<br>loans<br>and<br>investments<br>are<br>also<br>excluded<br>from<br>Same<br>-<br>Property<br>NOI<br>..<br>GAAP<br>net<br>income<br>or<br>loss<br>is<br>further<br>adjusted<br>to<br>remove<br>the<br>impact<br>of<br>properties<br>that<br>were<br>not<br>owned<br>for<br>the<br>full<br>current<br>and<br>prior<br>year<br>reporting<br>periods<br>presented<br>..<br>Cash<br>rental<br>income<br>received<br>under<br>the<br>leases<br>pertaining<br>to<br>the<br>Company’s<br>assets<br>that<br>are<br>presented<br>as<br>commercial<br>loans<br>and<br>investments<br>in<br>accordance<br>with<br>GAAP<br>is<br>also<br>used<br>in<br>lieu<br>of<br>the<br>interest<br>income<br>equivalent<br>..<br>FFO<br>is<br>used<br>by<br>management,<br>investors<br>and<br>analysts<br>to<br>facilitate<br>meaningful<br>comparisons<br>of<br>operating<br>performance<br>between<br>periods<br>and<br>among<br>our<br>peers<br>primarily<br>because<br>it<br>excludes<br>the<br>effect<br>of<br>real<br>estate<br>depreciation<br>and<br>amortization<br>and<br>net<br>gains<br>or<br>losses<br>on<br>sales,<br>which<br>are<br>based<br>on<br>historical<br>costs<br>and<br>implicitly<br>assume<br>that<br>the<br>value<br>of<br>real<br>estate<br>diminishes<br>predictably<br>over<br>time,<br>rather<br>than<br>fluctuating<br>based<br>on<br>existing<br>market<br>conditions<br>..<br>We<br>believe<br>that<br>Core<br>FFO<br>and<br>AFFO<br>are<br>additional<br>useful<br>supplemental<br>measures<br>for<br>investors<br>to<br>consider<br>because<br>they<br>will<br>help<br>them<br>to<br>better<br>assess<br>our<br>operating<br>performance<br>without<br>the<br>distortions<br>created<br>by<br>other<br>non<br>-<br>cash<br>revenues<br>or<br>expenses<br>..<br>We<br>also<br>believe<br>that<br>Pro<br>Forma<br>EBITDA<br>is<br>an<br>additional<br>useful<br>supplemental<br>measure<br>for<br>investors<br>to<br>consider<br>as<br>it<br>allows<br>for<br>a<br>better<br>assessment<br>of<br>our<br>operating<br>performance<br>without<br>the<br>distortions<br>created<br>by<br>other<br>non<br>-<br>cash<br>revenues,<br>expenses<br>or<br>certain<br>effects<br>of<br>the<br>Company’s<br>capital<br>structure<br>on<br>our<br>operating<br>performance<br>..<br>We<br>use<br>Same<br>-<br>Property<br>NOI<br>to<br>compare<br>the<br>operating<br>performance<br>of<br>our<br>assets<br>between<br>periods<br>..<br>It<br>is<br>an<br>accepted<br>and<br>important<br>measurement<br>used<br>by<br>management,<br>investors<br>and<br>analysts<br>because<br>it<br>includes<br>all<br>property<br>-<br>level<br>revenues<br>from<br>of<br>the<br>Company’s<br>rental<br>properties,<br>less<br>operating<br>and<br>maintenance<br>expenses,<br>real<br>estate<br>taxes<br>and<br>other<br>property<br>-<br>specific<br>expenses<br>(“Net<br>Operating<br>Income”<br>or<br>“NOI”)<br>of<br>properties<br>that<br>have<br>been<br>owned<br>and<br>stabilized<br>for<br>the<br>entire<br>current<br>and<br>prior<br>year<br>reporting<br>periods<br>..<br>Same<br>-<br>Property<br>NOI<br>attempts<br>to<br>eliminate<br>differences<br>due<br>to<br>the<br>acquisition<br>or<br>disposition<br>of<br>properties<br>during<br>the<br>particular<br>period<br>presented,<br>and<br>therefore<br>provides<br>a<br>more<br>comparable<br>and<br>consistent<br>performance<br>measure<br>for<br>the<br>comparison<br>of<br>the<br>Company's<br>properties<br>..<br>FFO,<br>Core<br>FFO,<br>AFFO,<br>Pro<br>Forma<br>EBITDA,<br>and<br>Same<br>-<br>Property<br>NOI<br>may<br>not<br>be<br>comparable<br>to<br>similarly<br>titled<br>measures<br>employed<br>by<br>other<br>companies<br>.. | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Definitions & Terms<br>33<br>References<br>and<br>terms<br>used<br>in<br>this<br>presentation<br>that<br>are<br>in<br>addition<br>to<br>terms<br>defined<br>in<br>the<br>Non<br>-<br>GAAP<br>Financial<br>Measures<br>include<br>:<br>▪<br>This<br>presentation<br>has<br>been<br>published<br>on<br>October<br>27<br>,<br>2022<br>..<br>▪<br>All<br>information<br>is<br>as<br>of<br>September<br>30<br>,<br>2022<br>,<br>unless<br>otherwise<br>noted<br>..<br>▪<br>Any<br>calculation<br>differences<br>are<br>assumed<br>to<br>be<br>a<br>result<br>of<br>rounding<br>..<br>▪<br>“<br>2022<br>Guidance”<br>is<br>based<br>on<br>the<br>2022<br>Outlook<br>provided<br>in<br>the<br>Company’s<br>Third<br>Quarter<br>2022<br>Operating<br>Results<br>press<br>release<br>filed<br>on<br>October<br>27<br>,<br>2022<br>..<br>▪<br>“Alpine”<br>or<br>“PINE”<br>refers<br>to<br>Alpine<br>Income<br>Property<br>Trust,<br>a<br>publicly<br>traded<br>net<br>lease<br>REIT<br>traded<br>on<br>the<br>New<br>York<br>Stock<br>Exchange<br>under<br>the<br>ticker<br>symbol<br>PINE<br>..<br>▪<br>“Annualized<br>Straight<br>-<br>line<br>Base<br>Rent”,<br>“ABR”<br>or<br>“Rent”<br>and<br>the<br>statistics<br>based<br>on<br>ABR<br>are<br>calculated<br>based<br>on<br>our<br>current<br>portfolio<br>and<br>represent<br>straight<br>-<br>line<br>rent<br>calculated<br>in<br>accordance<br>with<br>GAAP<br>..<br>▪<br>“Credit<br>Rated”<br>is<br>a<br>tenant<br>or<br>the<br>parent<br>of<br>a<br>tenant<br>with<br>a<br>credit<br>rating<br>from<br>S&P<br>Global<br>Ratings,<br>Moody’s<br>Investors<br>Service,<br>Fitch<br>Ratings<br>or<br>the<br>National<br>Association<br>of<br>Insurance<br>Commissioners<br>(NAIC)<br>(together,<br>the<br>“Major<br>Rating<br>Agencies”)<br>..<br>An<br>“Investment<br>Grade<br>Rated<br>Tenant”<br>or<br>“IG”<br>references<br>a<br>Credit<br>Rated<br>tenant<br>or<br>the<br>parent<br>of<br>a<br>tenant,<br>or<br>credit<br>rating<br>thereof<br>with<br>a<br>rating<br>of<br>BBB<br>-<br>,<br>Baa<br>3<br>or<br>NAIC<br>-<br>2<br>or<br>higher<br>from<br>one<br>or<br>more<br>of<br>the<br>Major<br>Rating<br>Agencies<br>..<br>▪<br>“Contractual<br>Base<br>Rent”<br>or<br>“CBR”<br>represents<br>the<br>amount<br>owed<br>to<br>the<br>Company<br>under<br>the<br>terms<br>of<br>its<br>lease<br>agreements<br>at<br>the<br>time<br>referenced<br>..<br>▪<br>“Dividend”<br>or<br>“Dividends”,<br>subject<br>to<br>the<br>required<br>dividends<br>to<br>maintain<br>our<br>qualification<br>as<br>a<br>REIT,<br>are<br>set<br>by<br>the<br>Board<br>of<br>Directors<br>and<br>declared<br>on<br>a<br>quarterly<br>basis<br>and<br>there<br>can<br>be<br>no<br>assurances<br>as<br>to<br>the<br>likelihood<br>or<br>number<br>of<br>dividends<br>in<br>the<br>future<br>..<br>▪<br>“Investment<br>in<br>Alpine<br>Income<br>Property<br>Trust”<br>or<br>“Alpine<br>Investment”<br>or<br>“PINE<br>Ownership”<br>is<br>calculated<br>based<br>on<br>the<br>2<br>,<br>173<br>,<br>865<br>common<br>shares<br>and<br>partnership<br>units<br>CTO<br>owns<br>in<br>PINE<br>and<br>is<br>based<br>on<br>PINE’s<br>closing<br>stock<br>price<br>..<br>▪<br>“Leased<br>Occupancy”<br>refers<br>to<br>space<br>that<br>is<br>currently<br>leased<br>but<br>for<br>which<br>rent<br>payments<br>have<br>not<br>yet<br>commenced<br>..<br>▪<br>“MSA”<br>or<br>“Metropolitan<br>Statistical<br>Area”<br>is<br>a<br>region<br>that<br>consists<br>of<br>a<br>city<br>and<br>surrounding<br>communities<br>that<br>are<br>linked<br>by<br>social<br>and<br>economic<br>factors,<br>as<br>established<br>by<br>the<br>U<br>..<br>S<br>..<br>Office<br>of<br>Management<br>and<br>Budget<br>..<br>The<br>names<br>of<br>the<br>MSA<br>have<br>been<br>shortened<br>for<br>ease<br>of<br>reference<br>..<br>▪<br>“Net<br>Debt”<br>is<br>calculated<br>as<br>our<br>total<br>long<br>-<br>term<br>debt<br>as<br>presented<br>on<br>the<br>face<br>of<br>our<br>balance<br>sheet<br>;<br>plus<br>financing<br>costs,<br>net<br>of<br>accumulated<br>amortization<br>and<br>unamortized<br>convertible<br>debt<br>discount<br>;<br>less<br>cash,<br>restricted<br>cash<br>and<br>cash<br>equivalents<br>..<br>▪<br>“Net<br>Operating<br>Income”<br>or<br>“NOI”<br>is<br>revenues<br>from<br>all<br>income<br>properties<br>less<br>operating<br>expense,<br>maintenance<br>expense,<br>real<br>estate<br>taxes<br>and<br>rent<br>expense<br>..<br>▪<br>“Total<br>Enterprise<br>Value”<br>is<br>calculated<br>as<br>the<br>Company’s<br>Total<br>Common<br>Shares<br>Outstanding<br>multiplied<br>by<br>the<br>common<br>stock<br>price<br>;<br>plus<br>the<br>par<br>value<br>of<br>the<br>Series<br>A<br>perpetual<br>preferred<br>equity<br>outstanding<br>and<br>Net<br>Debt<br>.. | |
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