8-K
CTO Realty Growth, Inc. (CTO)
8-K
2022-04-28
For: 2022-04-28
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): April 28, 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.) |
| 1140 N. Williamson Blvd. ,<br><br>Suite 140<br><br>Daytona Beach , Florida<br><br>(Address of principal executive offices) | 32114<br><br>(Zip Code) |
Registrant’s telephone number, including area code: (386) 274-2202
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 April 28, 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 March 31, 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 April 28, 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 March 31, 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 April 28, 2022 |
| 99.2 Investor Presentation dated April 28, 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: April 28, 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 | CTO REALTY GROWTH REPORTS FIRST QUARTER 2022 OPERATING RESULTS |
|---|
WINTER PARK, FL – April 28, 2022 – CTO Realty Growth, Inc. (NYSE: CTO) (the “Company” or “CTO”) today announced its operating results and earnings for the quarter ended March 31, 2022.
Select Highlights
◾Reported Net Loss per diluted share attributable to common stockholders of $0.17 for the quarter ended March 31, 2022, a decrease of 112.9% from the comparable prior year period.
◾Reported Core FFO per diluted share attributable to common stockholders of $1.39 for the quarter ended March 31, 2022, an increase of 69.5% from the comparable prior year period.
◾Reported AFFO per diluted share attributable to common stockholders of $1.48 for the quarter ended March 31, 2022, an increase of 52.6% from the comparable prior year period.
◾Acquired one multi-tenant income property during the first quarter of 2022 for $39.1 million, representing a going-in cap rate above the range of the Company’s initial guidance for initial investment cash yields.
◾Entered into a loan agreement to provide $8.7 million of funding towards the development of the retail portion of Phase II of The Exchange at Gwinnett in Buford, GA at an initial investment yield above the range of the Company’s initial guidance for initial investment cash yields.
◾Sold two single tenant income properties for a total disposition volume of $24.0 million at a weighted average exit cap rate of 6.0%.
◾Reported a 17.7% increase in Same-Property NOI during the quarter ended March 31, 2022, as compared to the comparable prior year period.
◾Paid a regular common stock cash dividend during the first quarter of 2022 of $1.08 per share.
◾On April 7, 2022, the Company entered into a preferred equity agreement to provide $30.0 million of funding towards the acquisition of the Watters Creek at Montgomery Farm in Allen, Texas at an initial investment yield above the range of the Company’s initial guidance for initial investment cash yields.
◾The Company has announced it will pursue a three-for-one stock split to be effected in the form of a stock dividend of two additional shares of common stock for each outstanding share of common stock.
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CEO Comments
“I’m very pleased with our strong start to the year. We achieved Same-Property NOI growth of nearly 18% in the first quarter as our operational successes in 2021 have driven outsized organic cash flow growth in our recently acquired, retail-focused portfolio,” commented John P. Albright, President and Chief Executive Officer of CTO Realty Growth. “As we look to expand our portfolio, our team has done an excellent job continuing to find attractive opportunities in an increasingly competitive environment, committing more than $77 million of capital to well-located retail properties in the Houston, Atlanta and Dallas markets. For the balance of the year, we have a solid runway of Same-Store NOI growth from new tenants expected to open their doors in the back half of 2022 and we continue to focus on accretively selling our remaining office properties to provide capital for additional acquisitions. Our balance sheet remains well-positioned to fund prospective external growth opportunities and we’re hopeful our newly announced stock split improves the accessibility and liquidity of our stock for the benefit of our current and prospective shareholders.”
Quarterly Financial Results Highlights
The table below provides a summary of the Company’s operating results for the three months ended March 31, 2022:
| (in thousands, except per share data) | For the Three Months Ended March 31, 2022 | For the Three Months Ended March 31, 2021 | | Variance to Comparable Period in the Prior Year | |||||
|---|---|---|---|---|---|---|---|---|---|
| Net Income Attributable to the Company^^ | $ | 202 | | $ | 7,785 | | $ | (7,583) | (97.4%) |
| Net Income (Loss) Attributable to Common Stockholders ^^ | $ | (993) | | $ | 7,785 | | $ | (8,778) | (112.8%) |
| Net Income (Loss) per Diluted Share Attributable to Common Stockholders^(1)^ | $ | (0.17) | | $ | 1.32 | | $ | (1.49) | (112.9%) |
| | | | | | | | | | |
| Core FFO Attributable to Common Stockholders ^(2)^ | $ | 8,227 | | $ | 4,850 | | $ | 3,377 | 69.6% |
| Core FFO per Common Share – Diluted^(2)^ | $ | 1.39 | | $ | 0.82 | | $ | 0.57 | 69.5% |
| | | | | | | | | | |
| AFFO Attributable to Common Stockholders ^(2)^ | $ | 8,717 | | $ | 5,687 | | $ | 3,030 | 53.3% |
| AFFO per Common Share – Diluted^(2)^ | $ | 1.48 | | $ | 0.97 | | $ | 0.51 | 52.6% |
| | | | | | | | | | |
| Dividends Declared and Paid, per Preferred Share | $ | 0.40 | $ | — | | $ | 0.40 | 100.0% | |
| Dividends Declared and Paid, per Common Share | $ | 1.08 | | $ | 1.00 | | $ | 0.08 | 8.0% |
| ^(1)^ | The denominator for this measure in 2022 excludes the impact of 1,007,294 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. | ||||||||
| --- | --- |
The decrease in net income attributable to the Company for the three months ended March 31, 2022 is primarily attributable to a decrease in the closing stock price of PINE resulting in a non-cash, unrealized loss of $2.5 million on the mark-to-market of the Company’s investment in PINE, as compared to a non-cash, unrealized gain of $4.8 million during the three months ended March 31, 2021.
Investments
During the three months ended March 31, 2022, the Company acquired one retail property for total income property acquisition volume of $39.1 million and originated one loan agreement to provide $8.7 million of funding towards a retail development project. The Company’s first quarter 2022 investments included the following:
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| ◾ | Purchased Price Plaza Shopping Center, a 206,000 square foot multi-tenant retail property in the Katy submarket of Houston, Texas for $39.1 million. The property is anchored by Best Buy, Ross Dress for Less, dd’s DISCOUNTS and James Avery Artisan Jewelry, includes four single and multi-tenant outparcels, and is shadow anchored by Home Depot, Sam’s Club and Walmart. |
|---|---|
| ◾ | Entered into a loan agreement to provide $8.7 million of funding towards the development of the retail portion of Phase II of The Exchange at Gwinnett. The Company has a negotiated right of first offer on the retail portion of Phase II of The Exchange at Gwinnett, which is anticipated to be 37,000 square feet of retail at completion. The loan matures on January 26, 2024, has a one-year extension option, and bears a fixed interest-only rate of 7.25%. |
| --- | --- |
Subsequent to quarter-end, the Company entered into a preferred equity agreement to provide $30.0 million of funding towards the acquisition of the Watters Creek at Montgomery Farm, a grocery-anchored, mixed-use property located in Allen, Texas. The Watters Creek at Montgomery Farm is approximately 458,000 square feet of grocery-anchored retail and office, anchored by Market Street, Anthropologie, Mi Cocina, DSW, The Cheesecake Factory, Brio Italian Grille, and Michaels, and includes a variety of national and local retailers and restaurants. The three-year preferred investment for the acquisition was fully funded at closing, is interest-only through maturity, includes an origination fee, and bears a fixed preferred return above the range of the Company’s guidance for initial investment cash yields.
Dispositions
During the three months ended March 31, 2022, the Company sold two single tenant income properties, one of which was classified as a commercial loan and master lease investment due to the tenant’s repurchase option, for $24.0 million at a weighted average exit cap rate of 6.0%.
Income Property Portfolio ****
The Company’s income property portfolio consisted of the following as of March 31, 2022:
| <br><br>Asset Type | # of Properties ^(1)^ | Square Feet | Weighted Average Remaining Lease Term |
|---|---|---|---|
| Single Tenant | 7 | 422 | 6.5 years |
| Multi-Tenant | 14 | 2,416 | 6.9 years |
| Total / Weighted Average Lease Term | 21 | 2,838 | 6.8 years |
| Property Type | # of Properties ^(1)^ | **** | Square Feet | % of Cash Base Rent | ||
|---|---|---|---|---|---|---|
| Retail | 14 | 1,904 | 62.5% | |||
| Office | | 4 | | 532 | | 19.1% |
| Mixed-Use | | 3 | | 402 | | 18.4% |
| Total / Weighted Average Lease Term | 21 | 2,838 | 100.0% |
| Leased Occupancy | 93.3% | | |
|---|---|---|---|
| Economic Occupancy | 90.7% | | |
| Physical Occupancy | 89.6% | | |
Square feet in thousands.
| ^(1)^ | The properties include a property in Hialeah, Florida leased to a master tenant which includes three tenant repurchase options. Pursuant to FASB ASC Topic 842, Leases, the $21.0 million investment has been recorded in the Company’s consolidated balance sheets as Commercial Loan and Master Lease Investment. |
|---|
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Operational Highlights ****
The Company’s Same-Property NOI totaled $6.4 million during the first quarter of 2022, an increase of 17.7% over the comparable prior year period, as presented in the following table.
| (in thousands) | For the Three Months Ended March 31, 2022 | For the Three Months Ended March 31, 2021 | | Variance to Comparable Period in the Prior Year | |||||
|---|---|---|---|---|---|---|---|---|---|
| Single Tenant | $ | 2,009 | | $ | 1,984 | | $ | 25 | 1.3% |
| Multi-Tenant | | 4,404 | | | 3,465 | | | 939 | 27.1% |
| Total | $ | 6,413 | | $ | 5,449 | | $ | 964 | 17.7% |
During the first quarter of 2022, the Company signed leases totaling 56,969 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 | | 24.4 | | 8.9 years | | $31.32 | | $ 691 | | $ 335 |
| Renewals & Extensions | 32.5 | | 6.2 years | | $31.57 | | 368 | | 36 | |
| Total / Weighted Average | 56.9 | | 6.6 years | | $31.46 | | $ 1,059 | | $ 371 |
In thousands except for per square foot and lease term data.
Subsurface Interests
During the three months ended March 31, 2022, the Company sold approximately 4,750 acres of subsurface oil, gas, and mineral rights for $0.4 million, resulting in aggregate gains of $0.3 million.
Capital Markets and Balance Sheet
During the quarter ended March 31, 2022, the Company completed the following notable capital markets activity:
| ◾ | The Company issued 43,793 common shares under its ATM offering program at a weighted average gross price of $65.47 per share, for total net proceeds of $2.8 million. |
|---|
The following table provides a summary of the Company’s long-term debt, at face value, as of March 31, 2022:
| Component of Long-Term Debt | Principal | Interest Rate | Maturity Date |
|---|---|---|---|
| Revolving Credit Facility | $66.0 million | 30-day LIBOR + [1.35% – 1.95%] | May 2023 |
| 2025 Convertible Senior Notes | $51.0 million | 3.875% | April 2025 |
| 2026 Term Loan ^(1)^ | $65.0 million | 30-day LIBOR + [1.35% – 1.95%] | March 2026 |
| 2027 Term Loan ^(2)^ | $100.0 million | 30-day LIBOR + [1.35% – 1.95%] | January 2027 |
| Mortgage Note ^(3)^ | $17.8 million | 4.06% | August 2026 |
| Total Debt / Weighted Average Interest Rate | $299.8 million | 2.36% | |
| ^(1)^ | The Company utilized interest rate swaps on the $65.0 million 2026 Term Loan balance, including (i) its redesignation of the existing $50.0 million interest rate swap, entered into as of August 31, 2020, and (ii) a $15.0 million interest rate swap effective August 31, 2021, to fix LIBOR and achieve a weighted average fixed interest rate of 0.35% plus the applicable spread. | ||
| --- | --- |
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| ^(2)^ | The Company utilized interest rate swaps on the $100.0 million 2027 Term Loan balance, including (i) its redesignation of the existing $100.0 million interest rate swap, entered into as of March 31, 2020, and (ii) an additional interest rate swap, effective March 29, 2024, to extend the fixed interest rate through maturity on January 31, 2027, to fix LIBOR and achieve a fixed interest rate of 0.73% plus the applicable spread. |
|---|---|
| ^(3)^ | Mortgage note assumed in connection with the acquisition of Price Plaza Shopping Center located in Katy, Texas during the three months ended March 31, 2022. |
| --- | --- |
As of March 31, 2022, the Company’s net debt to Pro Forma EBITDA was 6.0 times, and as defined in the Company’s credit agreement, the Company’s fixed charge coverage ratio was 3.4 times. As of March 31, 2022, the Company’s net debt to total enterprise value was 35.8%. 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.
Subsequent to quarter-end, the Company announced that its Board of Directors has approved a three-for-one stock split of the Company’s common stock to be effected in the form of a stock dividend. Each stockholder of record at the close of business on June 27, 2022 (the “Record Date”), will receive two additional shares of the Company’s common stock for each share held as of the Record Date. The new shares will be distributed on June 30, 2022. The Company’s stock will begin trading at the post-split price on July 1, 2022. The Company’s second quarter regular common stock cash dividend, which will apply to pre-split shares only, will not be impacted by the stock split.
Dividends
On February 23, 2022, the Company announced a cash dividend on its common stock and Series A Preferred stock for the first quarter of 2022 of $1.08 per share and $0.40 per share, respectively, payable on March 31, 2022 to stockholders of record as of the close of business on March 10, 2022. The first quarter 2022 common stock cash dividend represents an 8.0% increase over the comparable prior year period quarterly dividend and a payout ratio of 77.7% and 73.0% of the Company’s first 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 first quarter performance and revised expectations regarding the Company’s investment activities, forecasted capital markets transactions, and the impact from implementation of certain accounting standards. The Company’s outlook for 2022 assumes continued stability in economic activity, stable or positive business trends related to each of our tenants and other significant assumptions. The effect of the Company’s recently announced three-for-one stock split has not been accounted for in the Company’s revised guidance.
The Company’s increased outlook for 2022 is as follows
| **** | 2022 Outlook | |||
|---|---|---|---|---|
| | | | Low | High |
| Acquisition of Income Producing Assets and Structured Investments^^ | $200 million | $250 million | ||
| Target Initial Cash Yield | 6.50% | 7.00% | ||
| | | | | |
| Disposition of Assets | $40 million | $70 million | ||
| Target Disposition Cash Yield | 5.25% | 6.50% | ||
| | | | | |
| Core FFO per Diluted Share | | | $4.55 | $4.80 |
| AFFO per Diluted Share | | | $4.95 | $5.20 |
| | | | | |
| Weighted Average Diluted Shares Outstanding | | | 6.1 million | 6.3 million |
1st Quarter Earnings Conference Call & Webcast
The Company will host a conference call to present its operating results for the quarter ended March 31, 2022, on Friday,
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April 29, 2022, at 9:00 AM ET. Stockholders and interested parties may access the earnings call via teleconference or webcast:
United States:1-877-815-0063
International: 1-631-625-3205
Please dial in at least fifteen minutes prior to the scheduled start time and use the code 3391827 when prompted.
A webcast of the call can be accessed at: https://edge.media-server.com/mmc/p/pujmnp9n.
To access the webcast, log on to the web address noted above or go to www.ctoreit.com and log in at the investor relations section. Please log in to the webcast at least ten minutes prior to the scheduled time of the Earnings Call.
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
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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”), 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 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 loan and master lease 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
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that are presented as commercial loan and master lease 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 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 of the Company’s rental 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.
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CTO Realty Growth, Inc.
Consolidated Balance Sheets
(In thousands, except share and per share data)
| As of | |||||
|---|---|---|---|---|---|
| (Unaudited)<br><br>March 31, 2022 | **** | December 31, 2021 | |||
| ASSETS | |||||
| Real Estate: | |||||
| Land, at Cost | $ | 205,241 | $ | 189,589 | |
| Building and Improvements, at Cost | 343,717 | 325,418 | |||
| Other Furnishings and Equipment, at Cost | 736 | 707 | |||
| Construction in Process, at Cost | 5,163 | 3,150 | |||
| Total Real Estate, at Cost | 554,857 | 518,864 | |||
| Less, Accumulated Depreciation | (27,844) | (24,169) | |||
| Real Estate—Net | 527,013 | 494,695 | |||
| Land and Development Costs | 694 | 692 | |||
| Intangible Lease Assets—Net | 81,925 | 79,492 | |||
| Assets Held for Sale | — | 6,720 | |||
| Investment in Alpine Income Property Trust, Inc. | 38,587 | 41,037 | |||
| Mitigation Credits | 3,702 | 3,702 | |||
| Mitigation Credit Rights | | 21,018 | | | 21,018 |
| Commercial Loan and Master Lease Investments | 21,830 | 39,095 | |||
| Cash and Cash Equivalents | 9,450 | 8,615 | |||
| Restricted Cash | 26,385 | 22,734 | |||
| Refundable Income Taxes | | 413 | | | 442 |
| Deferred Income Taxes—Net | | 75 | | | — |
| Other Assets | 23,127 | 14,897 | |||
| Total Assets | $ | 754,219 | $ | 733,139 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | ||||
| Liabilities: | | ||||
| Accounts Payable | $ | 1,553 | $ | 676 | |
| Accrued and Other Liabilities | 13,913 | 13,121 | |||
| Deferred Revenue | 4,592 | 4,505 | |||
| Intangible Lease Liabilities—Net | 5,543 | 5,601 | |||
| Deferred Income Taxes—Net | — | 483 | |||
| Long-Term Debt | 298,079 | 278,273 | |||
| Total Liabilities | 323,680 | 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 March 31, 2022 and December 31, 2021 | | 30 | 30 | ||
| Common Stock – 500,000,000 shares authorized; 0.01 par value, 6,011,611 shares issued and outstanding at March 31, 2022 and 5,916,226 shares issued and outstanding at December 31, 2021 | 60 | 60 | |||
| Additional Paid-In Capital | 81,092 | 85,414 | |||
| Retained Earnings | 339,828 | 343,459 | |||
| Accumulated Other Comprehensive Income | 9,529 | 1,517 | |||
| Total Stockholders’ Equity | 430,539 | 430,480 | |||
| Total Liabilities and Stockholders’ Equity | $ | 754,219 | $ | 733,139 |
All values are in US Dollars.
Page 9
CTO Realty Growth, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except share, per share and dividend data)
| **** | Three Months Ended | ||||
|---|---|---|---|---|---|
| **** | March 31,<br><br>2022 | **** | March 31,<br><br>2021 | ||
| Revenues | |||||
| Income Properties | $ | 15,168 | | $ | 11,449 |
| Management Fee Income | 936 | | 669 | ||
| Interest Income from Commercial Loan and Master Lease Investments | 718 | | 701 | ||
| Real Estate Operations | 388 | | 1,893 | ||
| Total Revenues | 17,210 | | 14,712 | ||
| Direct Cost of Revenues | | | | ||
| Income Properties | (4,016) | | (2,917) | ||
| Real Estate Operations | (51) | | (82) | ||
| Total Direct Cost of Revenues | (4,067) | | (2,999) | ||
| General and Administrative Expenses | (3,043) | | (3,132) | ||
| Depreciation and Amortization | (6,369) | | (4,830) | ||
| Total Operating Expenses | (13,479) | | (10,961) | ||
| Gain (Loss) on Disposition of Assets | (245) | | 708 | ||
| Other Gains and Income (Loss) | (245) | | 708 | ||
| Total Operating Income | 3,486 | | 4,459 | ||
| Investment and Other Income (Loss) | (1,894) | | 5,332 | ||
| Interest Expense | (1,902) | | (2,444) | ||
| Income (Loss) Before Income Tax Benefit | (310) | | 7,347 | ||
| Income Tax Benefit | 512 | | 438 | ||
| Net Income Attributable to the Company | $ | 202 | | $ | 7,785 |
| Distributions to Preferred Stockholders | | (1,195) | | | — |
| Net Income (Loss) Attributable to Common Stockholders | $ | (993) | | $ | 7,785 |
| | | | | | |
| Per Share Information: | | | | | |
| Basic and Diluted Net Income (Loss) Attributable to Common Stockholders | $ | (0.17) | | $ | 1.32 |
| | | | | | |
| Weighted Average Number of Common Shares: | | | | | |
| Basic and Diluted | | 5,908,892 | | | 5,879,085 |
| | | | |||
| Dividends Declared and Paid – Preferred Stock | $ | 0.40 | | $ | — |
| Dividends Declared and Paid – Common Stock | $ | 1.08 | | $ | 1.00 |
Page 10
CTO Realty Growth, Inc.
Non-GAAP Financial Measures
Same-Property NOI Reconciliation
(Unaudited)
(In thousands)
| **** | Three Months Ended | ||||
|---|---|---|---|---|---|
| **** | March 31,<br><br>2022 | **** | March 31,<br><br>2021 | ||
| Net Income Attributable to the Company | $ | 202 | $ | 7,785 | |
| (Gain) Loss on Disposition of Assets | | 245 | | | (708) |
| Depreciation and Amortization | | 6,369 | | | 4,830 |
| Amortization of Intangibles to Lease Income | | (481) | | | 396 |
| Straight-Line Rent Adjustment | | 538 | | | 685 |
| COVID-19 Rent Repayments | | (27) | | | (220) |
| Other Income Property Related Non-Cash Amortization | | 38 | | | 121 |
| Interest Expense | | 1,902 | | | 2,444 |
| General and Administrative Expenses | | 3,043 | | | 3,132 |
| Investment and Other Income (Loss) | | 1,894 | | | (5,332) |
| Income Tax Benefit | | (512) | | | (438) |
| Real Estate Operations Revenues | | (388) | | | (1,893) |
| Real Estate Operations Direct Cost of Revenues | | 51 | | | 82 |
| Management Fee Income | | (936) | | | (669) |
| Interest Income from Commercial Loan and Master Lease Investments | | (718) | | | (701) |
| Less: Impact of Properties Not Owned the Full Reporting Period | | (5,171) | | | (4,425) |
| Cash Rental Income Received from Properties Presented as <br>Commercial Loan and Master Lease Investments | | <br><br>364 | | | <br><br>360 |
| Same-Property NOI | $ | 6,413 | $ | 5,449 |
Page 11
CTO Realty Growth, Inc.
Non-GAAP Financial Measures
(Unaudited)
(In thousands, except per share data)
| | |||||
|---|---|---|---|---|---|
| **** | Three Months Ended | ||||
| **** | March 31,<br><br>2022 | **** | March 31,<br><br>2021 | ||
| Net Income Attributable to the Company | $ | 202 | $ | 7,785 | |
| Add Back: Effect of Dilutive Interest Related to 2025 Convertible Senior Notes ^(1)^ | — | — | |||
| Net Income Attributable to the Company, If-Converted | $ | 202 | $ | 7,785 | |
| Depreciation and Amortization | 6,369 | 4,830 | |||
| (Gain) Loss on Disposition of Assets | 245 | (708) | |||
| Gain on Disposition of Other Assets | (332) | (1,827) | |||
| Unrealized (Gain) Loss on Investment Securities | 2,457 | (4,834) | |||
| Funds from Operations | $ | 8,941 | | $ | 5,246 |
| Distributions to Preferred Stockholders | | (1,195) | | | — |
| Funds from Operations Attributable to Common Stockholders | $ | 7,746 | | $ | 5,246 |
| Amortization of Intangibles to Lease Income | | 481 | | (396) | |
| Less: Effect of Dilutive Interest Related to 2025 Convertible Senior Notes ^(1)^ | | — | | — | |
| Core Funds from Operations Attributable to Common Stockholders | $ | 8,227 | | $ | 4,850 |
| Adjustments: | | | | | |
| Straight-Line Rent Adjustment | (538) | (685) | |||
| COVID-19 Rent Repayments | 27 | 220 | |||
| Other Non-Cash Amortization | (139) | (224) | |||
| Amortization of Loan Costs and Discount on Convertible Debt | 234 | 475 | |||
| Non-Cash Compensation | 906 | 958 | |||
| Non-Recurring G&A | — | 93 | |||
| Adjusted Funds from Operations Attributable to Common Stockholders | $ | 8,717 | $ | 5,687 | |
| | | | | | |
| FFO Attributable to Common Stockholders per Common Share – Diluted | $ | 1.31 | $ | 0.89 | |
| Core FFO Attributable to Common Stockholders per Common Share – Diluted | $ | 1.39 | $ | 0.82 | |
| AFFO Attributable to Common Stockholders per Common Share – Diluted | $ | 1.48 | $ | 0.97 |
| ^(1)^ | Interest related to the 2025 Convertible Senior Notes excluded from net income attributable to the Company to derive FFO effective January 1, 2022 due to the implementation of ASU 2020-06 which requires presentation on an if-converted basis, as the impact to net income attributable to common stockholders would be anti-dilutive. |
|---|
Page 12
CTO Realty Growth, Inc.
Non-GAAP Financial Measures
Reconciliation of Net Debt to Pro Forma EBITDA
(Unaudited)
(In thousands)
| **** | Three Months Ended March 31, 2022 | |
|---|---|---|
| Net Income Attributable to the Company | $ | 202 |
| Depreciation and Amortization | 6,369 | |
| Loss on Disposition of Assets | 245 | |
| Gains on Disposition of Other Assets | (332) | |
| Unrealized Loss on Investment Securities | 2,457 | |
| Distributions to Preferred Stockholders | | (1,195) |
| Straight-Line Rent Adjustment | (538) | |
| Amortization of Intangibles to Lease Income | 481 | |
| Other Non-Cash Amortization | (139) | |
| Amortization of Loan Costs and Discount on Convertible Debt | 234 | |
| Non-Cash Compensation | 906 | |
| Interest Expense, Net of Amortization of Loan Costs and Discount on Convertible Debt | 1,669 | |
| EBITDA | $ | 10,359 |
| | | |
| Annualized EBITDA | $ | 41,436 |
| Pro Forma Annualized Impact of Current Quarter Acquisitions and Dispositions, Net ^(1)^ | | 2,770 |
| Pro Forma EBITDA | $ | 44,206 |
| | | |
| Total Long-Term Debt | | 298,079 |
| Financing Costs, Net of Accumulated Amortization | | 1,272 |
| Unamortized Convertible Debt Discount | | 483 |
| Cash & Cash Equivalents | | (9,450) |
| Restricted Cash | | (26,385) |
| Net Debt | $ | 263,999 |
| | | |
| Net Debt to Pro Forma EBITDA | 6.0x | |
| | | |
| ^(1)^ | Reflects the pro forma annualized impact on Annualized EBITDA of the Company’s acquisition and disposition activity during the three months ended March 31, 2022. | |
| --- | --- |
Page 13
Exhibit 99.2
| Investor Presentation<br>April 2022<br>REALTY GROWTH | |
|---|---|
| © CTO Realty Growth, Inc. | ctoreit.com<br>Company Profile<br>2<br>(1)<br>As of April 22, 2022 for income property assets.<br>(2)<br>Based on $63.65 per share common stock price as of April 22, 2022.<br><br>$39M<br>INVESTMENT IN<br>ALPINE INCOME PROPERTY TRUST<br>$4.95<br>–<br>$5.20<br>AFFO PER SHARE GUIDANCE RANGE<br>21<br>2.8M<br>7.7%<br>PROPERTIES<br>SQUARE FEET<br>IMPLIED CAP RATE<br>(1)<br>93%<br>LEASED<br>OCCUPANCY<br>Q1 2022 ANNUALIZED<br>DIVIDEND<br>$4.32/share<br>6.8%<br>CURRENT ANNUALIZED<br>DIVIDEND YIELD<br>(2)<br>$383M<br>$300M<br>$722M<br>EQUITY MARKET CAP<br>(1)<br>OUTSTANDING DEBT<br>TOTAL ENTERPRISE VALUE<br>(Net of Cash)<br>SERIES A PREFERRED<br>$75M<br>The Exchange at Gwinnet<br>Buford, GA |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Key Takeaways<br>3<br>Significant Discount to the Peer Group<br>Meaningful<br>potential<br>upside<br>in<br>valuation<br>as<br>CTO<br>has<br>one<br>of<br>the<br>lowest<br>2022<br>E<br>AFFO<br>multiple<br>of<br>its<br>primarily<br>retail<br>peer<br>group<br>..<br>Earnings<br>Growth<br>Through<br>Capital<br>Recycling<br>Strong,<br>long<br>-<br>term<br>track<br>record<br>of<br>monetizing<br>assets<br>at<br>favorable<br>spreads<br>to<br>drive<br>accretive<br>earnings<br>growth<br>and<br>attractive<br>risk<br>-<br>adjusted<br>returns<br>..<br>Attractive<br>Dividend<br>and<br>Improving<br>Payout<br>Ratio<br>CTO<br>has<br>paid<br>a<br>$<br>1<br>..<br>08<br>first<br>quarter<br>cash<br>dividend,<br>representing<br>a<br>6<br>..<br>8<br>%<br>in<br>-<br>place<br>annualized<br>yield<br>and<br>a<br>quickly<br>improving<br>AFFO<br>payout<br>ratio<br>(<br>85<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>..<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>states<br>such<br>as<br>Georgia,<br>Florida,<br>Texas,<br>Arizona<br>and<br>North<br>Carolina,<br>and<br>with<br>acquired<br>vacancy<br>that<br>represents<br>notable<br>leasing<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>15<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>.. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>NAV Components<br>4<br>Net Operating Income of Income Property Portfolio<br>(1)<br>$47.1<br>$47.1<br>$47.1<br>$47.1<br>$47.1<br>÷<br>Capitalization Rate<br>6.00%<br>6.25%<br>6.50%<br>6.75%<br>7.00%<br>Income Portfolio Value<br>$785.1<br>$753.7<br>$724.7<br>$697.9<br>$673.0<br>Other Assets:<br>+<br>Estimated Value for Subsurface Interests, Structured<br>Investments Portfolio, Mitigation Credits and Other Assets<br>$55.8<br>$55.8<br>$55.8<br>$55.8<br>$55.8<br>+<br>Cash, Cash Equivalents & Restricted Cash<br>35.8<br>35.8<br>35.8<br>35.8<br>35.8<br>+<br>Value of Shares & Units in Alpine Income Property Trust (PINE)<br>38.6<br>38.6<br>38.6<br>38.6<br>38.6<br>+<br>Value of PINE Management Agreement<br>(2)<br>9.0<br>9.0<br>9.0<br>9.0<br>9.0<br>Other Assets Value<br>$139.2<br>$139.2<br>$139.2<br>$139.2<br>$139.2<br>Total Implied Asset Value<br>$924.3<br>$892.9<br>$863.9<br>$837.1<br>$812.2<br>-<br>Total Debt Outstanding<br>$299.8<br>$299.8<br>$299.8<br>$299.8<br>$299.8<br>-<br>Series A Preferred Equity<br>$75.0<br>$75.0<br>$75.0<br>$75.0<br>$75.0<br>Note: 6,011,611 shares outstanding as of March 31, 2022.<br>(1)<br>Based on 2022 budgeted net operating income of the existing income property portfolio assets as of March 31, 2022.<br>(2)<br>Calculated using the trailing 24<br>-<br>month average management fee paid to CTO by PINE as of March 31, 2022, annualized by multip<br>lying 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>Differentiated Investment Strategy<br>5<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 that have a grocery, lifestyle or community<br>-<br>oriented retail component and a complimentary mixed<br>-<br>use component, located in higher<br>growth MSAs within the continental United States<br>▪<br>Acquisition targets exhibit strong current in<br>-<br>place yields with a future potential for increased<br>returns through a combination of vacancy lease<br>-<br>up, redevelopment or rolling in<br>-<br>place leases<br>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 mineral<br>rights) that when monetized, will unlock meaningful equity to be redeployed into income<br>producing assets that can drive higher cash flow and 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 pure<br>play net lease REIT, which is a meaningful source of management fee income and dividend<br>income through its direct investment of REIT shares and OP unit holdings<br>▪<br>CTO intends to monetize its remaining net lease properties at market pricing, creating<br>attractive net investment spreads relative to where it is investing in multi<br>-<br>tenanted assets,<br>and resulting in an opportunity to grow PINE through direct asset sales from CTO to PINE<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>Real Estate Strategy<br>CTO’s investment strategy is focused on generating relative outsized returns for our shareholders through a<br>combination of accretive acquisitions and dispositions, asset<br>-<br>level value creation, acquiring at meaningful discounts to<br>replacement cost, and sustainably growing organizational level cash flow.<br>Differentiated asset investment strategy<br>Markets projected to have outsized job and population<br>growth; states with favorable business climates<br>Attractive single tenant asset portfolio identified for<br>future disposition to fund new investments<br>Primary focus on value<br>-<br>add retail and mixed<br>-<br>use<br>properties with strong real estate fundamentals<br>Seek properties with leasing or repositioning upside<br>or highly stable assets with an identifiable opportunity<br>to drive long<br>-<br>term, outsized risk<br>-<br>adjusted returns<br>Acquiring at meaningful discounts to replacement<br>cost and below market rents<br>Miami<br>Orlando<br>Jacksonville<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>6<br>CTO Target Market |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Meaningful Progress with Portfolio Repositioning<br>7<br>$365<br>$489<br>$305<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>The Shops at Legacy<br>Plano, TX<br>2022 AFFO is set to benefit<br>from the full<br>-<br>year impact of 2021<br>transaction activity<br>Price Plaza Shopping Center<br>Katy, TX<br>(1)<br>Reflects the midpoint of 2022 Guidance provided on April 28, 2022.<br>(1) |
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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>8<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>Westcliff Shopping Center<br>Fort Worth, TX<br>The Exchange at Gwinnett<br>Buford, GA<br>The Strand at St. John’s Town Center<br>Jacksonville, FL<br>Jordan Landing<br>West Jordan, UT<br>Crossroads Towne Center<br>Chandler, AZ<br>Beaver Creek Crossings<br>Apex, NC |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Strong Demographic Portfolio<br>9<br>Percentages listed based on Annualized Base Rent.<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>16%<br>Jacksonville, FL<br>15%<br>Dallas, TX<br>15%<br>Raleigh, NC<br>10%<br>Phoenix, AZ<br>8%<br>Albuquerque, NM<br>7%<br>Houston, TX<br>6%<br>Santa Fe, NM<br>5%<br>Tampa, FL<br>4%<br>Salt Lake City, UT<br>3%<br>Miami, FL<br>3%<br>Washington, DC<br>3%<br>Las Vegas, NV<br>3%<br>Daytona Beach, FL<br>2%<br>Orlando, FL<br>1%<br>> 20%<br>10%<br>-<br>20%<br>5%<br>-<br>10%<br>< 5%<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>221,860<br>Portfolio Average<br>5<br>-<br>Mile Population<br>(1)<br>$110,060<br>Portfolio Average<br>5<br>-<br>Mile Household Income<br>(1)<br>1.7%<br>Portfolio Average 2021<br>-<br>2026<br>Projected Annual Population Growth<br>(1)<br>71%<br>Percentage of Portfolio ABR<br>from<br>ULI’s Top 30 Markets<br>(1) |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Meaningful Property Cash Flow & Leasing Momentum<br>10<br>3%<br>7%<br>3%<br>7%<br>14%<br>10%<br>18%<br>8%<br>4%<br>6%<br>5%<br>16%<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>% of ABR Expiring<br>Leases Signed<br>in Q1 2022<br>▪<br>Q1 2022 Year<br>-<br>Over<br>-<br>Year Same<br>-<br>Property NOI<br>17.7%<br>o<br>27.1% Q1 2022 multi<br>-<br>tenant same<br>-<br>property NOI growth<br>o<br>1.3% Q1 2022 single tenant same<br>-<br>property NOI growth<br>▪<br>Q1 2022 Leasing Spreads<br>2.2%<br>o<br>8.4% new lease spreads (excluding acquired vacancy)<br>o<br>1.5% option & renewal spreads<br>▪<br>Leased Occupancy<br>93%<br>o<br>Over<br>250 bps of future occupancy pickup<br>based on current<br>spread between Occupancy and Leased Occupancy |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Repositioning<br>–<br>Ashford Lane, Atlanta, GA<br>11<br>Acquired as Perimeter Place in 2020, with<br>an opportunity to up<br>-<br>tier through targeted<br>lease<br>-<br>up, an improved tenant mix and<br>market repositioning<br>▪<br>High barrier<br>-<br>to<br>-<br>entry location with new<br>residential projects, increasing density and 24<br>-<br>hour demand<br>▪<br>Near southeast corporate headquarters for UPS,<br>State Farm, First Data, IHG and Mercedes Benz<br>▪<br>Daytime population over 126,000 in 3<br>-<br>mile<br>radius; average household income of $139,000<br>THE HALL<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>Ashford Lane, Atlanta, GA<br>12<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>Ashford Lane<br>Atlanta, GA |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Repositioning<br>–<br>Ashford Lane, Atlanta, GA<br>13<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 17,000 square foot lease with a food hall<br>operator who will open in summer/fall 2022<br>▪<br>Signed new leases with the following notable tenants<br>in 2021 and 2022:<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>14<br>Recently signed 9,200 square foot<br>lease with a prominent hospitality<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>High barrier<br>-<br>to<br>-<br>entry location with 34% vacancy<br>at the time of acquisition<br>▪<br>Currently negotiating letters of intent and forms<br>of lease with multiple prospective tenants<br>▪<br>Immediate repositioning opportunity to drive<br>increased cash flow and re<br>-<br>vision the property<br>for a higher and better use<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>13.6x<br>6.8%<br>2.00%<br>2.50%<br>3.00%<br>3.50%<br>4.00%<br>4.50%<br>5.00%<br>5.50%<br>6.00%<br>6.50%<br>7.00%<br> 10.0x<br> 11.0x<br> 12.0x<br> 13.0x<br> 14.0x<br> 15.0x<br> 16.0x<br> 17.0x<br> 18.0x<br> 19.0x<br> 20.0x<br> 21.0x<br> 22.0x<br>CTO<br>Peer Comparisons<br>21.8x<br>17.1x<br>17.0x<br>16.8x<br>16.6x<br>14.7x<br>13.3x<br>13.0x<br>12.7x<br>12.7x<br>3.3%<br>3.5%<br>3.4%<br>3.0%<br>3.3%<br>3.1%<br>3.8%<br>3.6%<br>3.7%<br>4.7%<br>2.00%<br>2.50%<br>3.00%<br>3.50%<br>4.00%<br>4.50%<br>5.00%<br>5.50%<br>6.00%<br>6.50%<br>7.00%<br> 10.0x<br> 11.0x<br> 12.0x<br> 13.0x<br> 14.0x<br> 15.0x<br> 16.0x<br> 17.0x<br> 18.0x<br> 19.0x<br> 20.0x<br> 21.0x<br> 22.0x<br>FRT<br>AAT<br>AKR<br>KIM<br>UE<br>SITC<br>RPT<br>KRG<br>WSR<br>AHH<br>(1)<br>All 2022E peer FFO multiples and dividend yield information are based on the closing stock price on April 22, 2022, using ann<br>ual<br>ized dividends and 2022E FFO per share estimates from the KeyBank The Leaderboard report dated April 22, 2022; CTO’s FFO mult<br>ipl<br>e and dividend yield is based on its<br>closing stock price on April 22, 2022, using its Q1 annualized dividend announced on February 23, 2022, and 2022E Core FFO pe<br>r s<br>hare guidance as included in the Company’s 2022 Guidance provided on April 28, 2022.<br>CTO has an<br>outsized dividend yield<br>and<br>very attractive valuation<br>relative to its REIT peer group and<br>recent retail M&A multiples (KRG/RPAI and KIM/WRI), implying significant valuation upside.<br>2022E FFO Multiple and Annualized Dividend Yield<br>(1) |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Balance Sheet<br>16<br>$51<br>$83<br>$100<br>$66<br>2022<br>2023<br>2024<br>2025<br>2026<br>2027<br>Unsecured<br>Secured<br>Revolving Credit Facility<br>Components of Long<br>-<br>Term Debt<br>Principal<br>Interest Rate<br>Type<br>Revolving Credit Facility<br>66.0 million<br>30<br>-<br>Day LIBOR + [1.35%<br>–<br>1.95%]<br>Floating<br>2025 Convertible Senior Notes<br>51.0 million<br>3.88%<br>Fixed<br>2026 Term Loan<br>(3)<br>65.0 million<br>30<br>-<br>Day LIBOR + [1.35%<br>–<br>1.95%]<br>Fixed<br>Mortgage Note<br>17.8 million<br>4.06%<br>Fixed<br>2027 Term Loan<br>(4)<br>100.0 million<br>30<br>-<br>Day LIBOR + [1.35%<br>–<br>1.95%]<br>Fixed<br>Total Debt<br>$299.8 million<br>$ and shares outstanding in millions.<br>(1)<br>Estimated liquidity is through a combination of revolving credit facility undrawn commitments and existing cash and restric<br>ted cash.<br>(2)<br>Reflects $66.0 million outstanding under the Company’s $210 million senior unsecured revolving credit facility; the Company’<br>s senior unsecured revolving credit facility matures in May 2023 and includes a one<br>-<br>year extension option, subject to satisfacti<br>on of certain conditions; the maturity date reflected<br>assumes the Company exercises the one<br>-<br>year extension option.<br>(3)<br>The Company utilized interest rate swaps on the $65.0 million 2026 Term Loan balance, including (<br>i<br>) its redesignation of the existing $50.0 million interest rate swap, entered into as of August 31, 2020, and (ii) a $15.0 mi<br>lli<br>on interest rate swap effective August 31, 2021, to fix LIBOR and achieve a weighted<br>average fixed interest rate of 0.35% plus the applicable spread.<br>(4)<br>The Company utilized interest rate swaps on the $100.0 million 2027 Term Loan balance, including (<br>i<br>) its redesignation of the existing $100.0 million interest rate swap, entered into as of March 31, 2020, and (ii) an additio<br>nal<br>interest rate swap, effective March 29, 2024, to extend the fixed interest rate<br>through maturity on January 31, 2027, to fix LIBOR and achieve a fixed interest rate of 0.73% plus the applicable spread.<br>Debt Maturities<br>▪<br>More than $170 million of cash<br>and undrawn commitments<br>(1)<br>▪<br>No near<br>-<br>term debt maturities<br>▪<br>Minimal exposure to floating<br>interest rates<br>▪<br>36% net debt<br>-<br>to<br>-<br>total<br>enterprise value (TEV)<br>▪<br>6.0x Net Debt<br>-<br>to<br>-<br>Pro Forma<br>EBITDA<br>(2) |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>2022 Guidance<br>17<br>$ and shares outstanding in millions, except per share data.<br>(1)<br>The effect of the Company’s recently announced three<br>-<br>for<br>-<br>one stock split has not been accounted for in the Company’s revised gui<br>dance.<br>CTO has provided guidance indicating as much as<br>19% year<br>-<br>over<br>-<br>year AFFO per share growth<br>in 2022.<br>Low<br>High<br>Low<br>High<br>Low<br>High<br>Investments<br>$200 million<br>–<br>$250 million<br>$200 million<br>–<br>$250 million<br>$0 million<br>–<br>$0 million<br>Target Initial Cash Yield<br>6.25%<br>–<br>6.75%<br>6.50%<br>–<br>7.00%<br>25 bps<br>–<br>25 bps<br>Dispositions<br>$40 million<br>–<br>$70 million<br>$40 million<br>–<br>$70 million<br>$0 million<br>–<br>$0 million<br>Target Disposition Cash Yield<br>6.50%<br>–<br>7.50%<br>5.25%<br>–<br>6.50%<br>(125 bps)<br>–<br>(100 bps)<br>Core FFO Per Diluted Share<br>$4.30<br>–<br>$4.55<br>$4.55<br>–<br>$4.80<br>$0.25<br>–<br>$0.25<br>AFFO Per Diluted Share<br>$4.90<br>–<br>$5.15<br>$4.95<br>–<br>$5.20<br>$0.05<br>–<br>$0.05<br>Weighted Average Diluted<br>Shares Outstanding<br>6.1 million<br>–<br>6.3 million<br>6.1 million<br>–<br>6.3 million<br>0 million<br>–<br>0 million<br>Initial 2022<br>Revised 2022<br>(1)<br>Increase (Decrease) |
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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>18<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>19<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 6 of<br>7 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>20<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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| 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>22<br>Property<br>Market<br>Asset Type<br>Property<br>Type<br>Square Feet<br>Occupancy<br>% of ABR<br>The Shops at Legacy<br>–<br>Plano, TX<br>Dallas, TX<br>Multi<br>-<br>Tenant<br>Mixed Use<br>237,690<br>84%<br>14%<br>Ashford Lane<br>–<br>Atlanta, GA<br>Atlanta, GA<br>Multi<br>-<br>Tenant<br>Retail<br>283,732<br>71%<br>12%<br>Beaver Creek Crossings<br>–<br>Apex, NC<br>Raleigh, NC<br>Multi<br>-<br>Tenant<br>Retail<br>320,434<br>96%<br>10%<br>The Strand<br>–<br>Jacksonville, FL<br>Jacksonville, FL<br>Multi<br>-<br>Tenant<br>Retail<br>204,552<br>93%<br>9%<br>Crossroads Towne Center<br>–<br>Chandler, AZ<br>Phoenix, AZ<br>Multi<br>-<br>Tenant<br>Retail<br>244,843<br>100%<br>8%<br>Fidelity<br>–<br>Albuquerque, NM<br>Albuquerque, NM<br>Single Tenant<br>Office<br>210,067<br>100%<br>7%<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>6%<br>245 Riverside<br>–<br>Jacksonville, FL<br>Jacksonville, FL<br>Multi<br>-<br>Tenant<br>Office<br>136,853<br>93%<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>136,638<br>73%<br>5%<br>The Exchange at Gwinnett<br>-<br>Buford, GA<br>Atlanta, GA<br>Multi<br>-<br>Tenant<br>Retail<br>69,265<br>92%<br>4%<br>Sabal Pavilion<br>–<br>Tampa, FL<br>Tampa, FL<br>Single Tenant<br>Office<br>120,500<br>100%<br>4%<br>Blue shading denotes a ground lease property or a property that has parcels that are ground leased, where the Company owns th<br>e<br>land, and the tenant owns the building and the improvements and leases the land from the Company. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Schedule of Properties<br>23<br>Property<br>Market<br>Asset Type<br>Property<br>Type<br>Square Feet<br>Occupancy<br>% of ABR<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>3%<br>Westland Gateway Plaza<br>–<br>Hialeah, FL<br>Miami, FL<br>Multi<br>-<br>Tenant<br>Retail<br>108,029<br>100%<br>3%<br>General Dynamics<br>–<br>Reston, VA<br>Washington, DC<br>Single Tenant<br>Office<br>64,319<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>3%<br>Landshark Bar & Grill<br>–<br>Daytona Beach, FL<br>Daytona Beach, FL<br>Single Tenant<br>Retail<br>6,264<br>100%<br>1%<br>Westcliff Shopping Center<br>–<br>Fort Worth, TX<br>Dallas, TX<br>Multi<br>-<br>Tenant<br>Retail<br>136,185<br>60%<br>1%<br>Chuy’s<br>–<br>Jacksonville, FL<br>Jacksonville, FL<br>Single Tenant<br>Retail<br>7,950<br>100%<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>28,008<br>100%<br>< 1%<br>Firebirds<br>–<br>Jacksonville, FL<br>Jacksonville, FL<br>Single Tenant<br>Retail<br>6,948<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>< 1%<br>Blue shading denotes a ground lease property or a property that has parcels that are ground leased, where the Company owns th<br>e l<br>and, and the tenant owns the building and the improvements and leases the land from the Company. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>The Shops at Legacy, Plano, TX<br>24 |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Ashford Lane, Atlanta, GA<br>25 |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Beaver Creek Crossings, Apex, NC<br>26 |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Crossroads Town Center, Chandler, AZ<br>27 |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>The Strand, Jacksonville, FL<br>28 |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Price Plaza Shopping Center, Katy, TX<br>29 |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>125 Lincoln & 150 Washington, Santa Fe, NM<br>30 |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>The Exchange at Gwinnett, Buford, GA<br>31 |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Jordan Landing, West Jordan, UT<br>32 |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Eastern Commons, Henderson, NV<br>33 |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Forward Looking Statements & Non<br>-<br>GAAP Financial Measures<br>34<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>35<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>36<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>April<br>28<br>,<br>2022<br>..<br>▪<br>All<br>information<br>is<br>as<br>of<br>March<br>31<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>First<br>Quarter<br>2022<br>Operating<br>Results<br>press<br>release<br>filed<br>on<br>April<br>28<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>March<br>31<br>,<br>2022<br>,<br>plus<br>the<br>annualized<br>current<br>quarterly<br>dividend<br>and<br>management<br>fees<br>from<br>PINE<br>based<br>on<br>the<br>Company’s<br>PINE<br>ownership<br>as<br>of<br>March<br>31<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>052<br>,<br>497<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>6<br>,<br>011<br>,<br>611<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>37<br>Three<br>Months<br>Ended<br>March 31, 2022<br>March 31, 2021<br>Revenues<br>Income Properties<br>$<br>15,168<br>$<br>11,449<br>Management Fee Income<br>936<br>669<br>Interest Income from Commercial Loan and Master Lease Investments<br>718<br>701<br>Real Estate Operations<br>388<br>1,893<br>Total Revenues<br>17,210<br>14,712<br>Direct Cost of Revenues<br>Income Properties<br>(4,016)<br>(2,917)<br>Real Estate Operations<br>(51)<br>(82)<br>Total Direct Cost of Revenues<br>(4,067)<br>(2,999)<br>General and Administrative Expenses<br>(3,043)<br>(3,132)<br>Depreciation and Amortization<br>(6,369)<br>(4,830)<br>Total Operating Expenses<br>(13,479)<br>(10,961)<br>Gain (Loss) on Disposition of Assets<br>(245)<br>708<br>Other Gains and Income (Loss)<br>(245)<br>708<br>Total Operating Income<br>3,489<br>4,459<br>Investment and Other Income (Loss)<br>(1,894)<br>5,332<br>Interest Expense<br>(1,902)<br>(2,444)<br>Income (Loss) Before Income Tax Benefit<br>(310)<br>7,347<br>Income Tax Benefit<br>512<br>438<br>Net Income Attributable to the Company<br>$<br>202<br>$<br>7,785<br>Distributions to Preferred Stockholders<br>(1,195)<br>—<br>Net Income (Loss) Attributable to Common Stockholders<br>$<br>(993)<br>$<br>7,785<br>Per Share Information:<br>Basic and Diluted Net Income (Loss) Attributable to Common Stockholders<br>$<br>(0.17)<br>$<br>1.32<br>Weighted Average Number of Common Shares:<br>Basic and Diluted<br>5,908,892<br>5,879,085<br>Dividends Declared and Paid<br>–<br>Preferred Stock<br>$<br>0.40<br>$<br>—<br>Dividends Declared and Paid<br>–<br>Common Stock<br>$<br>1.08<br>$<br>1.00<br>CTO Realty Growth, Inc.<br>Consolidated Statements of Operations<br>(Unaudited, in thousands, except share, per share and dividend data) |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Same<br>-<br>Property NOI<br>38<br>Three<br>Months<br>Ended<br>March 31, 2022<br>March 31, 2021<br>Net Income Attributable to the Company<br>$<br>202<br>$<br>7,785<br>(Gain) Loss on Disposition of Assets<br>245<br>(708)<br>Depreciation and Amortization<br>6,369<br>4,830<br>Amortization of Intangibles to Lease Income<br>(481)<br>396<br>Straight<br>-<br>Line Rent Adjustment<br>538<br>685<br>COVID<br>-<br>19 Rent Repayments<br>(27)<br>(220)<br>Other Income Property Related Non<br>-<br>Cash Amortization<br>38<br>121<br>Interest Expense<br>1,902<br>2,444<br>General and Administrative Expenses<br>3,043<br>3,132<br>Investment and Other Income (Loss)<br>1,894<br>(5,332)<br>Income Tax Benefit<br>(512)<br>(438)<br>Real Estate Operations Revenues<br>(388)<br>(1,893)<br>Real Estate Operations Direct Cost of Revenues<br>51<br>82<br>Management Fee Income<br>(936)<br>(669)<br>Interest Income from Commercial Loan and Master Lease Investments<br>(718)<br>(701)<br>Less: Impact of Properties Not Owned the Full Reporting Period<br>(5,171)<br>(4,425)<br>Cash Rental Income Received from Properties Presented as<br>Commercial Loan and Master Lease Investments<br>364<br>360<br>Same<br>-<br>Property NOI<br>$<br>6,413<br>$<br>5,449<br>Year<br>-<br>Over<br>-<br>Year Growth<br>17.7%<br>CTO Realty Growth, Inc.<br>Same<br>-<br>Property NOI Reconciliation<br>(Unaudited, in thousands) |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Non<br>-<br>GAAP Financial Measures<br>39<br>Three<br>Months<br>Ended<br>March 31, 2022<br>March 31, 2021<br>Net Income Attributable to the Company<br>$<br>202<br>$<br>7,785<br>Add Back: Effect of Dilutive Interest Related to 2025 Convertible Senior Notes<br>(1)<br>—<br>—<br>Net Income Attributable to the Company, If<br>-<br>Converted<br>$<br>202<br>$<br>7,785<br>Depreciation and Amortization<br>6,369<br>4,830<br>Gains (Loss) on Disposition of Assets<br>245<br>(708)<br>Gain on Disposition of Other Assets<br>(332)<br>(1,827)<br>Unrealized (Gain) Loss on Investment Securities<br>2,457<br>(4,834)<br>Funds from Operations<br>$<br>8,941<br>$<br>5,246<br>Distributions to Preferred Stockholders<br>(1,195)<br>—<br>Funds from Operations Attributable to Common Stockholders<br>$<br>7,746<br>$<br>5,246<br>Amortization of Intangibles to Lease Income<br>481<br>(396)<br>Less: Effect of Dilutive Interest Related to 2025 Convertible Senior Notes<br>(1)<br>—<br>—<br>Core Funds from Operations Attributable to Common Stockholders<br>$<br>8,227<br>$<br>4,850<br>Adjustments:<br>Straight<br>-<br>Line Rent Adjustment<br>(538)<br>(685)<br>COVID<br>-<br>19 Rent Repayments<br>27<br>220<br>Other Non<br>-<br>Cash Amortization<br>(139)<br>(224)<br>Amortization of Loan Costs and Discount on Convertible Debt<br>234<br>475<br>Non<br>-<br>Cash Compensation<br>906<br>958<br>Non<br>-<br>Recurring G&A<br>—<br>93<br>Adjusted Funds from Operations Attributable to Common Stockholders<br>$<br>8,717<br>$<br>5,687<br>FFO Attributable to Common Stockholders per Common Share<br>–<br>Diluted<br>$<br>1.31<br>$<br>0.89<br>Core FFO Attributable to Common Stockholders per Common Share<br>–<br>Diluted<br>$<br>1.39<br>$<br>0.82<br>AFFO Attributable to Common Stockholders per Common Share<br>–<br>Diluted<br>$<br>1.48<br>$<br>0.97<br>CTO Realty Growth, Inc.<br>Non<br>-<br>GAAP Financial Measures<br>(Unaudited, in thousands, except per share data)<br>(1)<br>Interest related to the 2025 Convertible Senior Notes excluded from net income attributable to the Company to derive FFO effe<br>cti<br>ve January 1, 2022 due to the implementation of ASU 2020<br>-<br>06 which requires presentation on an if<br>-<br>converted basis, as the impact<br>to net income attributable to common<br>stockholders would be anti<br>-<br>dilutive. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Net Debt to Pro Forma EBITDA<br>40<br>CTO Realty Growth, Inc.<br>Reconciliation of Net Debt to Pro Forma EBITDA<br>(Unaudited, in thousands)<br>March 31, 2022<br>Net Income Attributable to the Company<br>$<br>202<br>Depreciation and Amortization<br>6,369<br>Loss on Disposition of Assets<br>245<br>Gains on the Disposition of Other Assets<br>(332)<br>Unrealized Gain on Investment Securities<br>(2,457)<br>Distributions to Preferred Stockholders<br>(1,195)<br>Straight<br>-<br>Line Rent Adjustment<br>(538)<br>Amortization of Intangibles to Lease Income<br>481<br>Other Non<br>-<br>Cash Amortization<br>(139)<br>Amortization of Loan Costs and Discount on Convertible Debt<br>234<br>Non<br>-<br>Cash Compensation<br>906<br>Interest Expense, Net of Amortization of Loan Costs and Discount on Convertible Debt<br>1,669<br>EBITDA<br>$<br>10,359<br>Annualized EBITDA<br>$<br>41,436<br>Pro Forma Annualized Impact of Current Quarter Acquisitions and Dispositions, Net<br>(1)<br>2,770<br>Pro Forma EBITDA<br>$<br>44,206<br>Total Long<br>-<br>Term Debt<br>298,079<br>Financing Costs, Net of Accumulated Amortization<br>1,272<br>Unamortized Convertible Debt Discount<br>483<br>Cash & Cash Equivalents<br>(9,450)<br>Restricted Cash<br>(26,385)<br>Net Debt<br>$<br>263,999<br>Net Debt to Pro Forma EBITDA<br>6.0x<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 March 31, 2022. |
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| REALTY GROWTH<br>Crabby’s Oceanside & Landshark Bar and Grill<br>Daytona Beach, FL | |
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Exhibit 99.3
| © CTO Realty Growth, Inc. | ctoreit.com<br>REALTY GROWTH<br>Supplemental Reporting Information<br>Q1 2022 |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>1.<br>First Quarter 2021 Earnings Release<br>3<br>2.<br>Key Financial Information<br>▪<br>Consolidated Balance Sheets<br>11<br>▪<br>Consolidated Statements of Operations<br>12<br>▪<br>Non<br>-<br>GAAP Financial Measures<br>13<br>3.<br>Capitalization & Dividends<br>16<br>4.<br>Summary of Debt<br>17<br>5.<br>Investments<br>18<br>6.<br>Dispositions<br>19<br>7.<br>Portfolio Detail<br>20<br>8.<br>Leasing Summary<br>22<br>9.<br>Lease Expirations<br>23<br>10.<br>Top Tenant Summary<br>24<br>11.<br>Geographic Diversification<br>25<br>12.<br>Other Assets<br>26<br>13.<br>2022 Guidance<br>27<br>14.<br>Contact Information & Research Coverage<br>28<br>15.<br>Safe Harbor, Non<br>-<br>GAAP Financial Measures, and Definitions and Terms<br>29<br>Table of Contents |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Capitalization & Dividends<br>$ and shares outstanding in thousands, except per share data.<br>As of March 31, 2022, unless otherwise noted<br>Equity Capitalization<br>Common Shares Outstanding<br>6,012<br>Common Share Price<br>$66.32<br>Total Common Equity Market Capitalization<br>$398,690<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>$473,690<br>Debt Capitalization<br>Total Debt Outstanding<br>$299,834<br>Total Capitalization<br>$773,524<br>Cash, Restricted Cash & Cash Equivalents<br>$35,835<br>Total Enterprise Value<br>$737,689<br>Dividends Paid<br>Common<br>Preferred<br>Q2 2021<br>$1.00<br>-<br>Q3 2021<br>$1.00<br>$0.37<br>Q4 2021<br>$1.00<br>$0.40<br>Q1 2022<br>$1.08<br>$0.40<br>Trailing Twelve Months Q1 2022<br>$4.08<br>$1.17<br>Q1 2022 Core FFO Per Diluted Share<br>$1.39<br>Q1 2022 AFFO Per Diluted Share<br>$1.48<br>Q1 2022 Core FFO Payout Ratio<br>77.7%<br>Q1 2022 AFFO Payout Ratio<br>73.0%<br>Dividend Yield<br>Q1 2022<br>$1.08<br>$0.40<br>Annualized Q1 2022 Dividend<br>$4.32<br>$1.59<br>Price Per Share as of March 31, 2022<br>$66.32<br>$25.15<br>Implied Dividend Yield<br>6.5%<br>6.3%<br>16 |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Debt Summary<br>$ in thousands.<br>As of March 31, 2022, unless otherwise noted.<br>(1)<br>See reconciliation as part of Non<br>-<br>GAAP Financial Measures in the Company’s First Quarter 2022 Earnings Release.<br>Indebtedness Outstanding<br>Face Value<br>Interest Rate<br>Maturity Date<br>Type<br>Revolving Credit Facility<br>$66,000<br>30<br>-<br>Day LIBOR + [1.35%<br>–<br>1.95%]<br>May 2023<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>30<br>-<br>Day LIBOR + [1.35%<br>–<br>1.95%]<br>March 2026<br>Fixed<br>Mortgage Note<br>17,800<br>4.06%<br>August 2026<br>Fixed<br>2027 Term Loan<br>100,000<br>30<br>-<br>Day LIBOR + [1.35%<br>–<br>1.95%]<br>January 2027<br>Fixed<br>Total /<br>Wtd<br>.. Avg.<br>$299,834<br>2.36%<br>Fixed vs. Variable<br>Face Value<br>Interest Rate<br>% of Total Debt<br>Total Fixed Rate Debt<br>233,834<br>2.52%<br>78%<br>Total Variable Rate Debt<br>66,000<br>30<br>-<br>Day LIBOR + [1.35%<br>–<br>1.95%]<br>22%<br>Total /<br>Wtd<br>.. Avg.<br>$299,834<br>2.36%<br>100%<br>Leverage Metrics<br>Face Value of Debt<br>$299,834<br>Cash, Restricted Cash & Cash Equivalents<br>($35,835)<br>Net Debt<br>$263,999<br>Total Enterprise Value<br>$737,689<br>Net Debt to Total Enterprise Value<br>36%<br>Net Debt to Pro Forma EBITDA<br>(1)<br>6.0x<br>17 |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Investments<br>$ in thousands.<br>As of March 31, 2022.<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>3/3/2022<br>205,813<br>$39,100<br>95%<br>Total Acquisitions<br>205,813<br>$39,100<br>18<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, GA<br>Atlanta, GA<br>Grocery<br>-<br>Anchored Retail<br>1/26/2022<br>$8,700<br>First Mortgage<br>Total Acquisitions<br>$8,700 |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Property<br>Market<br>Type<br>Date Sold<br>Square Feet<br>Price<br>Gain (Loss)<br>Party City<br>–<br>Oceanside, NY<br>New York, NY<br>Single Tenant Retail<br>1/7/2022<br>15,500<br>$6,949<br>($60)<br>The Carpenter Hotel<br>–<br>Austin, TX<br>Austin, TX<br>Hospitality Ground Lease<br>3/11/2022<br>73,508<br>17,095<br>(178)<br>Total Dispositions<br>89,008<br>$24,044<br>($238)<br>Dispositions<br>19<br>$ in thousands.<br>As of March 31, 2022. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Portfolio Detail<br>20<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>283,732<br>71%<br>81%<br>$6,018<br>$21.21<br>The Exchange at Gwinnett<br>Multi<br>-<br>Tenant Retail<br>2021<br>69,265<br>90%<br>97%<br>2,010<br>$29.01<br>Total Atlanta, GA<br>352,997<br>75%<br>84%<br>$8,028<br>$22.74<br>Jacksonville, FL<br>The Strand at St. Johns Town Center<br>Multi<br>-<br>Tenant Retail<br>2019<br>204,552<br>93%<br>95%<br>$4,652<br>$22.74<br>245 Riverside<br>Multi<br>-<br>Tenant Office<br>2015<br>136,853<br>93%<br>93%<br>2,620<br>$19.15<br>Firebirds Wood Fired Grill<br>Single Tenant Retail<br>2018<br>6,948<br>100%<br>100%<br>298<br>$42.89<br>Chuy's<br>Single Tenant Retail<br>2018<br>7,950<br>100%<br>100%<br>355<br>$44.65<br>Total Jacksonville, FL<br>356,303<br>93%<br>94%<br>$7,925<br>$22.24<br>Dallas, TX<br>The Shops at Legacy<br>Multi<br>-<br>Tenant Mixed Use<br>2021<br>237,690<br>84%<br>93%<br>$6,631<br>$27.90<br>Westcliff Shopping Center<br>Multi<br>-<br>Tenant Retail<br>2017<br>136,185<br>60%<br>60%<br>489<br>$3.59<br>Total Dallas, TX<br>373,875<br>75%<br>81%<br>$7,120<br>$19.04<br>Raleigh, NC<br>Beaver Creek Crossings<br>Multi<br>-<br>Tenant Retail<br>2021<br>320,434<br>96%<br>98%<br>$5,222<br>$16.30<br>Phoenix, AZ<br>Crossroads Town Center<br>Multi<br>-<br>Tenant Retail<br>2020<br>244,843<br>100%<br>100%<br>$4,854<br>$19.83<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>Santa Fe, NM<br>125 Lincoln & 150 Washington<br>Multi<br>-<br>Tenant Mixed Use<br>2021<br>136,638<br>73%<br>86%<br>$2,658<br>$19.45<br>$ 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>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>Tampa, FL<br>Sabal Pavilion<br>Single Tenant Office<br>2020<br>120,500<br>100%<br>100%<br>$2,199<br>$18.25<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>$1,580<br>$24.56<br>Las Vegas, NV<br>Eastern Commons<br>Multi<br>-<br>Tenant Retail<br>2021<br>133,304<br>100%<br>100%<br>$1,539<br>$11.55<br>Miami, FL<br>Westland Gateway Plaza<br>Multi<br>-<br>Tenant Retail<br>2020<br>108,029<br>100%<br>100%<br>$1,460<br>$13.52<br>Daytona Beach, FL<br>Landshark Bar & Grill<br>Single Tenant Retail<br>2018<br>6,264<br>100%<br>100%<br>$628<br>$100.32<br>Crabby's<br>Oceanside<br>Single Tenant Retail<br>2018<br>5,780<br>100%<br>100%<br>273<br>$47.28<br>Total Daytona Beach, FL<br>12,044<br>100%<br>100%<br>$901<br>$74.86<br>Orlando, FL<br>Winter Park Office<br>Multi<br>-<br>Tenant Mixed Use<br>2021<br>28,008<br>100%<br>100%<br>$350<br>$12.50<br>Total Portfolio<br>2,838,170<br>91%<br>93%<br>$52,238<br>$18.41 |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Leasing Summary<br>$ and square feet in thousands, except per square foot data.<br>22<br>Renewals and Extensions<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Q4 2022<br>2022<br>Leases<br>8<br>8<br>Square Feet<br>32.5<br>32.5<br>New Cash Rent PSF<br>$31.57<br>$31.57<br>Tenant Improvements<br>$368<br>$368<br>Leasing Commissions<br>$36<br>$36<br>Weighted Average Term<br>6.2<br>6.2<br>New Leases<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Q4 2022<br>2022<br>Leases<br>10<br>10<br>Square Feet<br>24.4<br>24.4<br>New Cash Rent PSF<br>$31.32<br>$31.32<br>Tenant Improvements<br>$691<br>$691<br>Leasing Commissions<br>$335<br>$335<br>Weighted Average Term<br>8.9<br>8.9<br>All Leases Summary<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Q4 2022<br>2022<br>Leases<br>18<br>18<br>Square Feet<br>56.9<br>56.9<br>New Cash Rent PSF<br>$31.46<br>$31.46<br>Tenant Improvements<br>$1,059<br>$1,059<br>Leasing Commissions<br>$371<br>$371<br>Weighted Average Term<br>6.6<br>6.6 |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Lease Expiration Schedule<br>$ and square feet in thousands.<br>23<br>Year<br>Leases Expiring<br>Expiring SF<br>% of Total<br>Cash ABR<br>% of Total<br>2022<br>26<br>70<br>2.5%<br>1,839<br>3.5%<br>2023<br>28<br>184<br>6.5%<br>4,105<br>7.9%<br>2024<br>19<br>65<br>2.3%<br>1,772<br>3.4%<br>2025<br>21<br>135<br>4.8%<br>3,349<br>6.4%<br>2026<br>43<br>417<br>14.7%<br>7,534<br>14.4%<br>2027<br>30<br>370<br>13.0%<br>5,458<br>10.4%<br>2028<br>21<br>482<br>17.0%<br>9,673<br>18.5%<br>2029<br>18<br>238<br>8.4%<br>4,389<br>8.4%<br>2030<br>11<br>97<br>3.4%<br>1,905<br>3.6%<br>2031<br>26<br>88<br>3.1%<br>2,711<br>5.2%<br>Thereafter<br>19<br>428<br>15.1%<br>9,501<br>18.2%<br>Total<br>262<br>2,575<br>90.7%<br>52,238<br>100.0%<br>Vacant<br>263<br>9.3%<br>Total<br>2,838<br>100.0% |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Top Tenant Summary<br>24<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>7.4%<br>3,567<br>6.8%<br>Ford Motor Credit<br>BB+<br>1<br>121<br>4.2%<br>2,199<br>4.2%<br>WeWork<br>CCC+<br>1<br>59<br>2.1%<br>1,939<br>3.7%<br>General Dynamics<br>A<br>-<br>1<br>64<br>2.3%<br>1,580<br>3.0%<br>At Home<br>B<br>2<br>192<br>6.8%<br>1,546<br>3.0%<br>Seritage Growth Properties<br>Not Rated<br>1<br>108<br>3.8%<br>1,460<br>2.8%<br>Ross/dd’s DISCOUNT<br>BBB+<br>4<br>106<br>3.7%<br>1,333<br>2.6%<br>Best Buy<br>BBB+<br>2<br>82<br>2.9%<br>1,224<br>2.3%<br>Darden Restaurants<br>BBB<br>3<br>27<br>1.0%<br>1,207<br>2.3%<br>Harkins Theatres<br>Not Rated<br>1<br>56<br>2.0%<br>961<br>1.8%<br>Regal Cinemas<br>Not Rated<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>851<br>1.6%<br>Hobby Lobby<br>Not Rated<br>1<br>55<br>1.9%<br>715<br>1.4%<br>Burlington<br>BB+<br>1<br>47<br>1.6%<br>699<br>1.3%<br>PNC Bank<br>A<br>2<br>10<br>0.4%<br>684<br>1.3%<br>Landshark Bar & Grill<br>Not Rated<br>1<br>6<br>0.2%<br>628<br>1.2%<br>Raymond James & Associates<br>BBB+<br>2<br>24<br>0.8%<br>600<br>1.1%<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>1.0%<br>Seafood City<br>Not Rated<br>1<br>32<br>1.1%<br>483<br>0.9%<br>Other<br>233<br>1,222<br>43.0%<br>28,579<br>54.7%<br>Total<br>262<br>2,575<br>90.7%<br>52,238<br>100.0%<br>Vacant<br>263<br>9.3%<br>Total<br>2,838<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>25<br>Markets<br>Leases<br>Square Feet<br>% of Total<br>Cash ABR<br>% of Total<br>Atlanta, GA<br>2<br>353<br>12.4%<br>8,028<br>15.4%<br>Jacksonville, FL<br>4<br>356<br>12.6%<br>7,925<br>15.2%<br>Dallas, TX<br>2<br>374<br>13.2%<br>7,119<br>13.6%<br>Raleigh, NC<br>1<br>320<br>11.3%<br>5,222<br>10.0%<br>Phoenix, AZ<br>1<br>245<br>8.6%<br>4,854<br>9.3%<br>Albuquerque, NM<br>1<br>210<br>7.4%<br>3,567<br>6.8%<br>Houston, TX<br>1<br>206<br>7.3%<br>3,164<br>6.1%<br>Santa Fe, NM<br>1<br>137<br>4.8%<br>2,658<br>5.1%<br>Tampa, FL<br>1<br>121<br>4.2%<br>2,199<br>4.2%<br>Salt Lake City, UT<br>1<br>171<br>6.0%<br>1,670<br>3.2%<br>Las Vegas, NV<br>1<br>64<br>2.3%<br>1,580<br>3.0%<br>Washington, DC<br>1<br>133<br>4.7%<br>1,539<br>2.9%<br>Miami, FL<br>1<br>108<br>3.8%<br>1,460<br>2.8%<br>Daytona Beach, FL<br>2<br>12<br>0.4%<br>902<br>1.7%<br>Orlando, FL<br>1<br>28<br>1.0%<br>350<br>0.7%<br>Total<br>21<br>2,838<br>100.0%<br>52,238<br>100.0%<br>States<br>Properties<br>Square Feet<br>% of Total<br>Cash ABR<br>% of Total<br>Florida<br>9<br>625<br>22.0%<br>12,835<br>24.6%<br>Texas<br>3<br>580<br>20.4%<br>10,283<br>19.7%<br>Georgia<br>2<br>353<br>12.4%<br>8,028<br>15.4%<br>New Mexico<br>2<br>347<br>12.2%<br>6,225<br>11.9%<br>North Carolina<br>1<br>320<br>11.3%<br>5,222<br>10.0%<br>Arizona<br>1<br>245<br>8.6%<br>4,854<br>9.3%<br>Utah<br>1<br>171<br>6.0%<br>1,670<br>3.2%<br>Nevada<br>1<br>133<br>4.7%<br>1,539<br>2.9%<br>Virginia<br>1<br>64<br>2.3%<br>1,580<br>3.0%<br>Total<br>21<br>2,838<br>100.0%<br>52,238<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>(1)<br>As of March 31, 2022.<br>26<br>Investment Securities<br>Shares & Operating<br>Partnership Units<br>Owned<br>Value Per Share<br>March 31, 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>2,052<br>$18.80<br>$38,587<br>$1.08<br>$2,217<br>Structured Investments<br>Type<br>Origination<br>Date<br>Maturity<br>Date<br>Original Loan<br>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>—<br>7.25%<br>Total Structured Investments<br>$9,464<br>$764<br>7.37%<br>Subsurface Interests<br>Acreage<br>Estimated Value<br>Acres Available for Sale<br>(1)<br>365,000 acres<br>$6,000<br>Mitigation Credits and Rights<br>State Credits<br>Federal Credits<br>Federal Credits<br>Mitigation Credits<br>41.1<br>18.8<br>$3,700<br>Mitigation Credit Rights<br>257.6<br>156.4<br>21,000<br>Total Mitigation Credits<br>298.7<br>175.2<br>$24,700 |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>2022 Guidance<br>$ and shares outstanding in millions, except per share data.<br>(1)<br>As of April 28, 2022.<br>27<br>Low<br>High<br>Acquisition & Structured Investments<br>$200<br>-<br>$250<br>Target Initial Investment Cash Yield<br>6.50%<br>-<br>7.00%<br>Dispositions<br>$40<br>-<br>$70<br>Target Disposition Cash Yield<br>5.25%<br>-<br>6.50%<br>Core FFO Per Diluted Share<br>$4.55<br>-<br>$4.80<br>AFFO Per Diluted Share<br>$4.95<br>-<br>$5.20<br>Weighted Average Diluted Shares Outstanding<br>6.1<br>-<br>6.3<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>first<br>quarter<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>and<br>the<br>impact<br>from<br>implementation<br>of<br>certain<br>accounting<br>standards<br>..<br>The<br>Company’s<br>outlook<br>for<br>2022<br>assumes<br>continued<br>stability<br>in<br>economic<br>activity,<br>stable<br>or<br>positive<br>business<br>trends<br>related<br>to<br>each<br>of<br>our<br>tenants<br>and<br>other<br>significant<br>assumptions<br>..<br>The<br>effect<br>of<br>the<br>Company’s<br>recently<br>announced<br>three<br>-<br>for<br>-<br>one<br>stock<br>split<br>has<br>not<br>been<br>accounted<br>for<br>in<br>the<br>Company’s<br>revised<br>guidance<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>Merrill Ross<br>mross@compasspointllc.com<br>(202) 534<br>-<br>1392<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>28 |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Safe Harbor<br>29<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>30<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>31<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>Definitions & Terms<br>32<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>April<br>28<br>,<br>2022<br>..<br>▪<br>All<br>information<br>is<br>as<br>of<br>March<br>31<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>First<br>Quarter<br>2022<br>Operating<br>Results<br>press<br>release<br>filed<br>on<br>April<br>28<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>March<br>31<br>,<br>2022<br>,<br>plus<br>the<br>annualized<br>current<br>quarterly<br>dividend<br>and<br>management<br>fees<br>from<br>PINE<br>based<br>on<br>the<br>Company’s<br>PINE<br>ownership<br>as<br>of<br>March<br>31<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>052<br>,<br>497<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>6<br>,<br>011<br>,<br>611<br>shares<br>.. 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