8-K
CTO Realty Growth, Inc. (CTO)
8-K
2022-07-28
For: 2022-07-28
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): July 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 July 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 June 30, 2022. Copies of the press release, investor presentation, and supplemental disclosure package are attached hereto as Exhibits 99.1, 99.2 and 99.3, respectively, and are incorporated herein by reference.
The information in Item 2.02 of this Current Report, including Exhibits 99.1, 99.2 and 99.3, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, unless it is specifically incorporated by reference therein.
Item 7.01. Regulation FD Disclosure
On July 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 June 30, 2022. Copies of the earnings press release, investor presentation, and supplemental disclosure package are attached hereto as Exhibits 99.1, 99.2 and 99.3, respectively, and are incorporated herein by reference.
The furnishing of these materials is not intended to constitute a representation that such furnishing is required by Regulation FD or other securities laws, or that the materials include material investor information that is not otherwise publicly available. In addition, the Company does not assume any obligation to update such information in the future.
The information in Item 7.01 of this Current Report, including Exhibits 99.1, 99.2 and 99.3, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act or the Exchange Act, unless it is specifically incorporated by reference therein.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
| |
|---|
| 99.1 Earnings Press Release dated July 28, 2022 |
| 99.2 Investor Presentation dated July 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: July 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 | <br><br>CTO REALTY GROWTH REPORTS SECOND QUARTER 2022 OPERATING RESULTS |
|---|
WINTER PARK, FL – July 28, 2022 – CTO Realty Growth, Inc. (NYSE: CTO) (the “Company” or “CTO”) today announced its operating results and earnings for the quarter ended June 30, 2022.
Select Highlights
◾Reported Net Income per diluted share attributable to common stockholders of $0.00 for the quarter ended June 30, 2022, an increase of 100.0% from the comparable prior year period.
◾Reported Core FFO per diluted share attributable to common stockholders of $1.41 for the quarter ended June 30, 2022, an increase of 60.2% from the comparable prior year period.
◾Reported AFFO per diluted share attributable to common stockholders of $1.48 for the quarter ended June 30, 2022, an increase of 38.3% from the comparable prior year period.
◾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 guidance for initial investment cash yields.
◾Entered into a loan agreement to provide $19.0 million of funding towards the development of the retail portion of the WaterStar Orlando mixed-use property in Kissimmee, FL at an initial investment yield above the range of the Company’s guidance for initial investment cash yields.
◾Reported a 23.8% increase in Same-Property NOI during the quarter ended June 30, 2022, as compared to the comparable prior year period.
◾Paid a regular common stock cash dividend during the second quarter of 2022 of $1.12 per share, representing an increase of 12.0% from the comparable prior year period, a payout ratio of 75.7% of the Company’s second quarter 2022 AFFO per diluted share, and an annualized yield of 6.9% based on the closing price of the Company’s common stock on July 27, 2022.
◾Completed a three-for-one stock split and began trading at the post-split price on July 1, 2022. The stock split was effected in the form of a stock dividend of two additional shares of common stock for each outstanding share of common stock held as of the record date for the stock dividend.
◾On July 8, 2022, the Company acquired Madison Yards, a newly built, grocery-anchored retail property located in Atlanta, Georgia for a purchase price of $80.2 million. The purchase price represents a going-in cap rate below the range of the Company’s prior guidance for initial cash yields.
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CEO Comments
“I am very encouraged by our second quarter performance as our team continues to make strong operational progress with our leasing and repositioning initiatives and finds attractive opportunities for external growth through our disciplined, retail-focused investment strategy,” said John P. Albright, President and Chief Executive Officer of CTO Realty Growth. “Our recent Madison Yards acquisition was a great opportunity to acquire a newly built grocery-anchored shopping center in one of the strongest markets in the country, further improving our already high-quality, growth market-oriented portfolio. With year-to-date same-store NOI growth of more than 20% and over 200 bps of leased occupancy set to rent commence over the next twelve months, we’re very excited about our prospects to drive double digit same-store NOI growth during the back half of this year and in 2023. This embedded growth should continue to help drive strong earnings for the foreseeable future and further support our attractive and growing dividend.”
Quarterly Financial Results Highlights
The tables below provide a summary of the Company’s operating results for the three months ended June 30, 2022:
| (in thousands, except per share data) | For the Three<br><br>Months Ended<br><br>June 30, 2022 | | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income (Loss) Attributable to the Company^^ | $ | 1,218 | | (3,724) | | 4,942 | 132.7% | |||
| Net Income (Loss) Attributable to Common Stockholders ^^ | $ | 22 | | (3,724) | | 3,746 | 100.6% | |||
| Net Income (Loss) per Diluted Share Attributable to Common Stockholders^(1)^ | $ | 0.00 | | (0.63) | | 0.63 | 100.0% | |||
| | | | | | | | | | | |
| Core FFO Attributable to Common Stockholders ^(2)^ | $ | 8,485 | | 5,218 | | 3,267 | 62.6% | |||
| Core FFO per Common Share – Diluted^(2)^ | $ | 1.41 | | 0.88 | | 0.53 | 60.2% | |||
| | | | | | | | | | | |
| AFFO Attributable to Common Stockholders ^(2)^ | $ | 8,890 | | 6,294 | | 2,596 | 41.2% | |||
| AFFO per Common Share – Diluted^(2)^ | $ | 1.48 | | 1.07 | | 0.41 | 38.3% | |||
| | | | | | | | | | | |
| Dividends Declared and Paid, per Preferred Share | $ | 0.40 | — | | 0.40 | 100.0% | ||||
| Dividends Declared and Paid, per Common Share | $ | 1.12 | | 1.00 | | 0.12 | 12.0% |
All values are in US Dollars.
| ^(1)^ | The denominator for this measure in 2022 excludes the impact of 1.0 million shares related to the Company’s adoption of ASU 2020-06, effective January 1, 2022, which requires presentation on an if-converted basis for its 2025 Convertible Senior Notes, as the impact would be anti-dilutive. |
|---|---|
| ^(2)^ | See the “Non-GAAP Financial Measures” section and tables at the end of this press release for a discussion and reconciliation of Net Income (Loss) Attributable to the Company to non-GAAP financial measures, including FFO Attributable to Common Stockholders, FFO per Common Share - Diluted, Core FFO Attributable to Common Stockholders, Core FFO per Common Share – Diluted, AFFO Attributable to Common Stockholders and AFFO per Common Share - Diluted. |
| --- | --- |
Year-to-Date Financial Results Highlights
The tables below provide a summary of the Company’s operating results for the six months ended June 30, 2022:
| (in thousands, except per share data) | For the Six<br><br>Months Ended<br><br>June 30, 2022 | | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income Attributable to the Company^^ | $ | 1,420 | | 4,061 | | (2,641) | (65.0%) |
All values are in US Dollars.
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| Net Income (Loss) Attributable to Common Stockholders ^^ | $ | (971) | | $ | 4,061 | | $ | (5,032) | (123.9%) |
|---|---|---|---|---|---|---|---|---|---|
| Net Income (Loss) per Diluted Share Attributable to Common Stockholders^(1)^ | $ | (0.16) | | $ | 0.69 | | $ | (0.85) | (123.2%) |
| | | | | | | | | | |
| Core FFO Attributable to Common Stockholders ^(2)^ | $ | 16,712 | | $ | 10,068 | | $ | 6,644 | 66.0% |
| Core FFO per Common Share – Diluted^(2)^ | $ | 2.81 | | $ | 1.71 | | $ | 1.10 | 64.3% |
| | | | | | | | | | |
| AFFO Attributable to Common Stockholders ^(2)^ | $ | 17,607 | | $ | 11,981 | | $ | 5,626 | 47.0% |
| AFFO per Common Share – Diluted^(2)^ | $ | 2.96 | | $ | 2.03 | | $ | 0.93 | 45.8% |
| | | | | | | | | | |
| Dividends Declared and Paid, per Preferred Share | $ | 0.80 | $ | — | | $ | 0.80 | 100.0% | |
| Dividends Declared and Paid, per Common Share | $ | 2.20 | | $ | 2.00 | | $ | 0.20 | 10.0% |
| ^(1)^ | The denominator for this measure in 2022 excludes the impact of 1.0 million shares related to the Company’s adoption of ASU 2020-06, effective January 1, 2022, which requires presentation on an if-converted basis for its 2025 Convertible Senior Notes, as the impact would be anti-dilutive. | ||||||||
| --- | --- | ||||||||
| ^(2)^ | See the “Non-GAAP Financial Measures” section and tables at the end of this press release for a discussion and reconciliation of Net Income Attributable to the Company to non-GAAP financial measures, including FFO Attributable to Common Stockholders, FFO per Common Share - Diluted, Core FFO Attributable to Common Stockholders, Core FFO per Common Share – Diluted, AFFO Attributable to Common Stockholders and AFFO per Common Share - Diluted. | ||||||||
| --- | --- |
Investments
During the three months ended June 30, 2022, the Company originated two structured investments to provide $49.0 million of funding towards two properties. The Company’s second quarter 2022 investments included the following:
| ◾ | Provided $30.0 million of preferred equity for the acquisition of Watters Creek at Montgomery Farm, a grocery-anchored, mixed-use property located in Allen, Texas. 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 of 8.50%. |
|---|---|
| ◾ | Provided a $19.0 million first mortgage for the development of the retail portion of the WaterStar Orlando mixed-use property in Kissimmee, FL. WaterStar Orlando is a mixed-use project at the center of one of the strongest performing retail corridors in Florida, includes 320 onsite residential units, and is in close proximity to the Margaritaville Resort Orlando, Island H20 Water Park, and the western entrance to Walt Disney World. The retail portion of the development is 102,000 square feet and is anchored by Marshalls, Burlington, pOpshelf, Portillo’s and Outback Steakhouse. The loan matures on August 31, 2022, is interest-only through maturity, includes an origination fee, and bears a fixed interest-only rate of 8.00%. |
| --- | --- |
During the six months ended June 30, 2022, the Company acquired one multi-tenant retail property for total income property acquisition volume of $39.1 million and originated three structured investments to provide $57.7 million of funding towards three retail and mixed-use properties. These acquisitions and structured investments represent a blended weighted average going-in yield of 7.9%.
Subsequent to quarter-end, the Company acquired Madison Yards, a 162,500 square foot grocery-anchored property located in the Inman Park/Reynoldstown submarket along the Memorial Drive corridor of Atlanta, Georgia for a purchase price of $80.2 million. The property is 98% occupied, anchored by Publix and AMC Theatres, includes a well-crafted mix of retailers and restaurants, including AT&T, First Watch, and Orangetheory Fitness, and is the Company’s first Publix-anchored center. The purchase price represents a going-in cap rate below the range of the Company’s guidance for initial cash yields.
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Dispositions
During the six months ended June 30, 2022, the Company sold two single tenant income properties, one of which was classified as a commercial loan 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 June 30, 2022:
| <br><br>Asset Type | # of Properties ^(1)^ | Square Feet | Weighted Average Remaining Lease Term |
|---|---|---|---|
| Single Tenant | 7 | 422 | 6.3 years |
| Multi-Tenant | 14 | 2,418 | 6.7 years |
| Total / Weighted Average Lease Term | 21 | 2,840 | 6.6 years |
| Property Type | # of Properties ^(1)^ | **** | Square Feet | % of Cash Base Rent | ||
|---|---|---|---|---|---|---|
| Retail | 14 | 1,905 | 61.5% | |||
| Office | | 4 | | 532 | | 19.5% |
| Mixed-Use | | 3 | | 403 | | 19.0% |
| Total / Weighted Average Lease Term | 21 | 2,840 | 100.0% |
| Leased Occupancy | 93.5% | | |
|---|---|---|---|
| Economic Occupancy | 91.3% | | |
| Physical Occupancy | 90.2% | | |
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 a Commercial Loan Investment. |
|---|
Operational Highlights ****
The Company’s Same-Property NOI totaled $7.4 million during the second quarter of 2022, an increase of 23.8% over the comparable prior year period, as presented in the following table.
| (in thousands) | For the Three<br><br>Months Ended<br><br>June 30, 2022 | For the Three<br><br>Months Ended<br><br>June 30, 2021 | | Variance to Comparable Period in the Prior Year | |||||
|---|---|---|---|---|---|---|---|---|---|
| Single Tenant | $ | 2,190 | | $ | 2,055 | | $ | 135 | 6.6% |
| Multi-Tenant | | 5,256 | | | 3,961 | | | 1,295 | 32.7% |
| Total | $ | 7,446 | | $ | 6,016 | | $ | 1,430 | 23.8% |
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During the second quarter of 2022, the Company signed leases totaling 41,163 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 | | 31.0 | | 12.2 years | | $32.66 | | $ | 2,721 | | $ | 298 |
| Renewals & Extensions | 10.2 | | 3.6 years | | $29.28 | | $ | — | | $ | 28 | |
| Total / Weighted Average | 41.2 | | 10.3 years | | $31.82 | | $ | 2,721 | | $ | 326 |
In thousands except for per square foot and lease term data.
Subsurface Interests
During the three months ended June 30, 2022, the Company sold approximately 8,330 acres of subsurface oil, gas, and mineral rights for $0.5 million, resulting in aggregate gains of $0.5 million.
During the six months ended June 30, 2022, the Company sold approximately 13,080 acres of subsurface oil, gas and mineral rights for $0.9 million, resulting in a gain on the sale of $0.8 million. As of June 30, 2022, the Company owns full or fractional subsurface oil, gas, and mineral interests underlying approximately 356,000 “surface” acres of land owned by others in 19 counties in Florida.
Capital Markets and Balance Sheet
During the quarter ended June 30, 2022, the Company completed the following notable capital markets activity:
| ◾ | Issued 88,065 common shares under its ATM offering program at a weighted average gross price of $66.03 per share, for total net proceeds of $5.7 million. |
|---|---|
| ◾ | Repurchased 20,010 shares for approximately $1.1 million at a weighted average gross price of $57.37 per share. |
| --- | --- |
| ◾ | Completed a three-for-one stock split and began trading at the post-split price on July 1, 2022. The stock split was effected in the form of a stock dividend of two additional shares of common stock for each outstanding share of common stock held as of the record date for the stock dividend. |
| --- | --- |
The following table provides a summary of the Company’s long-term debt, at face value, as of June 30, 2022:
| Component of Long-Term Debt | Principal | Interest Rate | Maturity Date |
|---|---|---|---|
| Revolving Credit Facility | $111.0 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 | $344.8 million | 2.63% | |
| ^(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. | ||
| --- | --- | ||
| ^(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. | ||
| --- | --- |
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As of June 30, 2022, the Company’s net debt to Pro Forma EBITDA was 6.6 times, and as defined in the Company’s credit agreement, the Company’s fixed charge coverage ratio was 3.4 times. As of June 30, 2022, the Company’s net debt to total enterprise value was 41.0%. The Company calculates total enterprise value as the sum of net debt, par value of its 6.375% Series A preferred equity, and the market value of the Company's outstanding common shares.
Dividends
On May 24, 2022, the Company announced a cash dividend on its common stock and Series A Preferred stock for the second quarter of 2022 of $1.12 per share and $0.40 per share, respectively, payable on June 30, 2022 to stockholders of record as of the close of business on June 9, 2022. The second quarter 2022 common stock cash dividend represents a 12.0% increase over the comparable prior year period quarterly dividend and a payout ratio of 79.4% and 75.7% of the Company’s second quarter 2022 Core FFO per diluted share and AFFO per diluted share, respectively.
2022 Outlook
The Company has increased its outlook for 2022 to take into account the Company’s year-to-date performance and revised expectations regarding the Company’s investment activities, forecasted capital markets transactions, and other significant assumptions. The revised per share estimates take into account the Company’s recently completed three-for-one stock split
The Company’s increased outlook for 2022 is as follows:
| | 2022 Revised Outlook Range | | Change from Prior Outlook | ||||
|---|---|---|---|---|---|---|---|
| | Low | | High | | Low | | High |
| Acquisition of Income Producing Assets^^ | $250.0 million | to | $275.0 million | | $50 million | to | $25 million |
| Target Investment Initial Cash Yield | 7.00% | to | 7.25% | | 50 bps | to | 25 bps |
| Disposition of Assets | $50.0 million | to | $80.0 million | | $10 million | to | $10 million |
| Target Disposition Cash Yield | 6.25% | to | 6.75% | | 100 bps | to | 25 bps |
| | | | | | | | |
| Core FFO Per Diluted Share | $1.58 | to | $1.64 | | $0.06 | to | $0.04 |
| AFFO Per Diluted Share | $1.70 | to | $1.76 | | $0.05 | to | $0.03 |
| | | | | | | | |
| Weighted Average Diluted<br><br>Shares Outstanding | 18.3 million | to | 18.5 million | | 0 million | to | 0.3 million |
2nd Quarter Earnings Conference Call & Webcast
The Company will host a conference call to present its operating results for the quarter ended June 30, 2022 on Friday, July 29, 2022, at 9:00 AM ET.
A live webcast of the call will be available on the Investor Relations page of the Company’s website at www.ctoreit.com or at the link provided in the event details below. To access the call by phone, please go to the link provided in the event details below and you will be provided with dial-in details.
Webcast: https://edge.media-server.com/mmc/p/uh9ig8iu
Dial-In: https://register.vevent.com/register/BI03c8d5540d254fb798fffd5daa427848
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We encourage participants to dial into the conference call at least fifteen minutes ahead of the scheduled start time. A replay of the earnings call will be archived and available online through the Investor Relations section of the Company’s website at www.ctoreit.com.
About CTO Realty Growth, Inc.
CTO Realty Growth, Inc. is a publicly traded real estate investment trust that owns and operates a portfolio of high-quality, retail-based properties located primarily in higher growth markets in the United States. CTO also externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE), a publicly traded net lease REIT.
We encourage you to review our most recent investor presentation and supplemental financial information, which is available on our website at www.ctoreit.com.
Safe Harbor
Certain statements contained in this press release (other than statements of historical fact) are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can typically be identified by words such as “believe,” “estimate,” “expect,” “intend,” “anticipate,” “will,” “could,” “may,” “should,” “plan,” “potential,” “predict,” “forecast,” “project,” and similar expressions, as well as variations or negatives of these words.
Although forward-looking statements are made based upon management’s present expectations and reasonable beliefs concerning future developments and their potential effect upon the Company, a number of factors could cause the Company’s actual results to differ materially from those set forth in the forward-looking statements. Such factors may include, but are not limited to: the Company’s ability to remain qualified as a REIT; the Company’s exposure to U.S. federal and state income tax law changes, including changes to the REIT requirements; general adverse economic and real estate conditions; macroeconomic and geopolitical factors, including but not limited to inflationary pressures, interest rate volatility, global supply chain disruptions, and ongoing geopolitical war; the ultimate geographic spread, severity and duration of pandemics such as the COVID-19 Pandemic and its variants, actions that may be taken by governmental authorities to contain or address the impact of such pandemics, and the potential negative impacts of such pandemics on the global economy and the Company’s financial condition and results of operations; the inability of major tenants to continue paying their rent or obligations due to bankruptcy, insolvency or a general downturn in their business; the loss or failure, or decline in the business or assets of PINE; the completion of 1031 exchange transactions; the availability of investment properties that meet the Company’s investment goals and criteria; the uncertainties associated with obtaining required governmental permits and satisfying other closing conditions for planned acquisitions and sales; and the uncertainties and risk factors discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and other risks and uncertainties discussed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission.
There can be no assurance that future developments will be in accordance with management’s expectations or that the effect of future developments on the Company will be those anticipated by management. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to update the information contained in this press release to reflect subsequently occurring events or circumstances.
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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 attributable to the Company is adjusted to exclude extraordinary items (as defined by GAAP), net gain or loss from sales of depreciable real estate assets, impairment write-downs associated with depreciable real estate assets and real estate related depreciation and amortization, including the pro rata share of such adjustments of unconsolidated subsidiaries, non-cash revenues and expenses such as straight-line rental revenue, amortization of deferred financing costs, above- and below-market lease related intangibles, non-cash compensation, and other non-cash income or expense. Cash interest expense is also excluded from Pro Forma EBITDA, and GAAP net income or loss is adjusted for the annualized impact of acquisitions, dispositions and other similar activities.
To derive Same-Property NOI, GAAP net income or loss attributable to the Company is adjusted to exclude extraordinary items (as defined by GAAP), gain or loss on disposition of assets, gain or loss on extinguishment of debt, impairment charges, and depreciation and amortization, including the pro rata share of such adjustments of unconsolidated subsidiaries, if any, non-cash revenues and expenses such as above- and below-market lease related intangibles, straight-line rental revenue, and other non-cash income or expense. Interest expense, general and administrative expenses, investment and other income or loss, income tax benefit or expense, real estate operations revenues and direct cost of revenues, management fee income, and interest income from commercial loans and investments are also excluded from Same-Property NOI. GAAP net income or loss is further adjusted to remove the impact of properties that were not owned for the full current and prior year reporting periods presented. Cash rental income received under the leases pertaining to the Company’s assets that are presented as commercial loans and investments in accordance with GAAP is also used in lieu of the interest income equivalent.
Page 8
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 the Company’s properties, less operating and maintenance expenses, real estate taxes and other property-specific expenses (“Net Operating Income” or “NOI”) of properties that have been owned and stabilized for the entire current and prior year reporting periods. Same-Property NOI attempts to eliminate differences due to the acquisition or disposition of properties during the particular period presented, and therefore provides a more comparable and consistent performance measure for the comparison of the Company's properties. FFO, Core FFO, AFFO, Pro Forma EBITDA, and Same-Property NOI may not be comparable to similarly titled measures employed by other companies.
Page 9
CTO Realty Growth, Inc.
Consolidated Balance Sheets
(In thousands, except share and per share data)
| | | As of | ||||
|---|---|---|---|---|---|---|
| | **** | (Unaudited) June 30, 2022 | **** | December 31, 2021 | ||
| ASSETS | | | | | | |
| Real Estate: | | | | | | |
| Land, at Cost | | $ | 205,245 | | $ | 189,589 |
| Building and Improvements, at Cost | | | 344,205 | | | 325,418 |
| Other Furnishings and Equipment, at Cost | | | 741 | | | 707 |
| Construction in Process, at Cost | | | 10,419 | | | 3,150 |
| Total Real Estate, at Cost | | | 560,610 | | | 518,864 |
| Less, Accumulated Depreciation | | | (31,735) | | | (24,169) |
| Real Estate—Net | | | 528,875 | | | 494,695 |
| Land and Development Costs | | | 686 | | | 692 |
| Intangible Lease Assets—Net | | | 78,328 | | | 79,492 |
| Assets Held for Sale | | | — | | | 6,720 |
| Investment in Alpine Income Property Trust, Inc. | | | 38,483 | | | 41,037 |
| Mitigation Credits | | | 3,436 | | | 3,702 |
| Mitigation Credit Rights | | | 21,018 | | | 21,018 |
| Commercial Loans and Investments | | | 68,783 | | | 39,095 |
| Cash and Cash Equivalents | | | 7,137 | | | 8,615 |
| Restricted Cash | | | 27,189 | | | 22,734 |
| Refundable Income Taxes | | | 286 | | | 442 |
| Deferred Income Taxes—Net | | | 105 | | | — |
| Other Assets | | | 28,029 | | | 14,897 |
| Total Assets | | $ | 802,355 | | $ | 733,139 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | |
| Liabilities: | | | | | | |
| Accounts Payable | | $ | 1,325 | | $ | 676 |
| Accrued and Other Liabilities | | | 15,705 | | | 13,121 |
| Deferred Revenue | | | 5,358 | | | 4,505 |
| Intangible Lease Liabilities—Net | | | 5,277 | | | 5,601 |
| Deferred Income Taxes—Net | | | — | | | 483 |
| Long-Term Debt | | | 343,196 | | | 278,273 |
| Total Liabilities | | | 370,861 | | | 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 June 30, 2022 and December 31, 2021 | | | 30 | | | 30 |
| Common Stock – 500,000,000 shares authorized; $0.01 par value, 6,082,626 shares issued and outstanding at June 30, 2022 and 5,916,226 shares issued and outstanding at December 31, 2021 | | | 61 | | | 60 |
| Additional Paid-In Capital | | | 86,347 | | | 85,414 |
| Retained Earnings | | | 332,916 | | | 343,459 |
| Accumulated Other Comprehensive Income | | | 12,140 | | | 1,517 |
| Total Stockholders’ Equity | | | 431,494 | | | 430,480 |
| Total Liabilities and Stockholders’ Equity | | $ | 802,355 | | $ | 733,139 |
Page 10
CTO Realty Growth, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except share, per share and dividend data)
| | | Three Months Ended | | Six Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | June 30, | | June 30, | | June 30, | | June 30, | ||||
| | **** | 2022 | **** | 2021 | **** | 2022 | **** | 2021 | ||||
| Revenues | | | | | | | | | | | | |
| Income Properties | | $ | 16,367 | | $ | 11,574 | | $ | 31,535 | | $ | 23,023 |
| Management Fee Income | | | 948 | | | 752 | | | 1,884 | | | 1,421 |
| Interest Income From Commercial Loans and Investments | | | 1,290 | | | 709 | | | 2,008 | | | 1,410 |
| Real Estate Operations | | | 858 | | | 1,248 | | | 1,246 | | | 3,141 |
| Total Revenues | | | 19,463 | | | 14,283 | | | 36,673 | | | 28,995 |
| Direct Cost of Revenues | | | | | | | | | | | | |
| Income Properties | | | (4,812) | | | (2,787) | | | (8,828) | | | (5,704) |
| Real Estate Operations | | | (228) | | | (533) | | | (279) | | | (615) |
| Total Direct Cost of Revenues | | | (5,040) | | | (3,320) | | | (9,107) | | | (6,319) |
| General and Administrative Expenses | | | (2,676) | | | (2,665) | | | (5,719) | | | (5,797) |
| Impairment Charges | | | — | | | (16,527) | | | — | | | (16,527) |
| Depreciation and Amortization | | | (6,727) | | | (5,031) | | | (13,096) | | | (9,861) |
| Total Operating Expenses | | | (14,443) | | | (27,543) | | | (27,922) | | | (38,504) |
| Gain (Loss) on Disposition of Assets | | | — | | | 4,732 | | | (245) | | | 5,440 |
| Gain (Loss) on Extinguishment of Debt | | | — | | | (641) | | | — | | | (641) |
| Other Gains and Income (Loss) | | | — | | | 4,091 | | | (245) | | | 4,799 |
| Total Operating Income (Loss) | | | 5,020 | | | (9,169) | | | 8,506 | | | (4,710) |
| Investment and Other Income (Loss) | | | (1,311) | | | 3,903 | | | (3,205) | | | 9,235 |
| Interest Expense | | | (2,277) | | | (2,421) | | | (4,179) | | | (4,865) |
| Income (Loss) Before Income Tax Benefit (Expense) | | | 1,432 | | | (7,687) | | | 1,122 | | | (340) |
| Income Tax Benefit (Expense) | | | (214) | | | 3,963 | | | 298 | | | 4,401 |
| Net Income (Loss) Attributable to the Company | | | 1,218 | | | (3,724) | | | 1,420 | | | 4,061 |
| Distributions to Preferred Stockholders | | | (1,196) | | | — | | | (2,391) | | | — |
| Net Income (Loss) Attributable to Common Stockholders | | $ | 22 | | $ | (3,724) | | $ | (971) | | $ | 4,061 |
| | | | | | | | | | | | | |
| Per Share Information: | | | | | | | | | | | | |
| Basic and Diluted Net Income (Loss) Attributable to Common Stockholders | | $ | 0.00 | | $ | (0.63) | | $ | (0.16) | | $ | 0.69 |
| | | | | | | | | | | | | |
| Weighted Average Number of Common Shares | | | | | | | | | | | | |
| Basic and Diluted | | | 6,004,178 | | | 5,898,280 | | | 5,956,798 | | | 5,888,735 |
| | | | | | | | | | | | | |
| Dividends Declared and Paid – Preferred Stock | | $ | 0.40 | | $ | — | | $ | 0.80 | | $ | — |
| Dividends Declared and Paid – Common Stock | | $ | 1.12 | | $ | 1.00 | | $ | 2.20 | | $ | 2.00 |
Page 11
CTO Realty Growth, Inc.
Non-GAAP Financial Measures
Same-Property NOI Reconciliation
(Unaudited)
(In thousands)
| **** | Three Months Ended | ||||
|---|---|---|---|---|---|
| **** | June 30,<br><br>2022 | **** | June 30,<br><br>2021 | ||
| Net Income (Loss) Attributable to the Company | $ | 1,218 | $ | (3,724) | |
| Gain on Disposition of Assets | | — | | | (4,732) |
| Loss on Extinguishment of Debt | | — | | | 641 |
| Impairment Charges | | — | | | 16,527 |
| Depreciation and Amortization | | 6,727 | | | 5,031 |
| Amortization of Intangibles to Lease Income | | (497) | | | 338 |
| Straight-Line Rent Adjustment | | 507 | | | 490 |
| COVID-19 Rent Repayments | | (26) | | | (434) |
| Other Income Property Related Non-Cash Amortization | | 38 | | | 38 |
| Interest Expense | | 2,277 | | | 2,421 |
| General and Administrative Expenses | | 2,676 | | | 2,665 |
| Investment and Other Loss (Income) | | 1,311 | | | (3,903) |
| Income Tax Expense (Benefit) | | 214 | | | (3,963) |
| Real Estate Operations Revenues | | (858) | | | (1,248) |
| Real Estate Operations Direct Cost of Revenues | | 228 | | | 533 |
| Management Fee Income | | (948) | | | (752) |
| Interest Income from Commercial Loans and Investments | | (1,290) | | | (709) |
| Less: Impact of Properties Not Owned for the Full Reporting Period | | (4,494) | | | (3,557) |
| Cash Rental Income Received from Properties Presented as <br>Commercial Loans and Investments | | 363 | | | 354 |
| Same-Property NOI | $ | 7,446 | $ | 6,016 |
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CTO Realty Growth, Inc.
Non-GAAP Financial Measures
(Unaudited)
(In thousands, except per share data)
| | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Three Months Ended | | Six Months Ended | ||||||||
| | | June 30, 2022 | | June 30, 2021 | | June 30, 2022 | | June 30, 2021 | ||||
| Net Income (Loss) Attributable to the Company | | $ | 1,218 | | $ | (3,724) | | $ | 1,420 | | $ | 4,061 |
| Add Back: Effect of Dilutive Interest Related to 2025 Notes ^(1)^ | | | — | | | — | | | — | | | — |
| Net Income (Loss) Attributable to the Company, If-Converted | | $ | 1,218 | | $ | (3,724) | | | 1,420 | | | 4,061 |
| Depreciation and Amortization of Real Estate | | | 6,707 | | | 5,031 | | | 13,076 | | | 9,861 |
| (Gains) Losses on Disposition of Assets | | | — | | | (4,732) | | | 245 | | | (5,440) |
| Gains on Disposition of Other Assets | | | (632) | | | (748) | | | (964) | | | (2,575) |
| Impairment Charges, Net | | | — | | | 12,474 | | | — | | | 12,474 |
| Unrealized Loss (Gain) on Investment Securities | | | 1,891 | | | (3,386) | | | 4,348 | | | (8,220) |
| Funds from Operations | | $ | 9,184 | | $ | 4,915 | | $ | 18,125 | | $ | 10,161 |
| Distributions to Preferred Stockholders | | | (1,196) | | | — | | | (2,391) | | | — |
| Funds From Operations Attributable to Common Stockholders | | $ | 7,988 | | $ | 4,915 | | $ | 15,734 | | $ | 10,161 |
| Loss on Extinguishment of Debt | | | — | | | 641 | | | — | | | 641 |
| Amortization of Intangibles to Lease Income | | | 497 | | | (338) | | | 978 | | | (734) |
| Less: Effect of Dilutive Interest Related to 2025 Notes^(1)^ | | | — | | | — | | | — | | | — |
| Core Funds From Operations Attributable to Common Stockholders | | $ | 8,485 | | $ | 5,218 | | $ | 16,712 | | $ | 10,068 |
| Adjustments: | | | | | | | | | | | | |
| Straight-Line Rent Adjustment | | | (507) | | | (490) | | | (1,045) | | | (1,175) |
| COVID-19 Rent Repayments | | | 26 | | | 434 | | | 53 | | | 654 |
| Other Depreciation and Amortization | | | (31) | | | (150) | | | (170) | | | (374) |
| Amortization of Loan Costs and Discount on Convertible Debt | | | 212 | | | 478 | | | 446 | | | 953 |
| Non-Cash Compensation | | | 705 | | | 742 | | | 1,611 | | | 1,700 |
| Non-Recurring G&A | | | — | | | 62 | | | — | | | 155 |
| Adjusted Funds From Operations Attributable to Common Stockholders | | $ | 8,890 | | $ | 6,294 | | $ | 17,607 | | $ | 11,981 |
| | | | | | | | | | | | | |
| FFO Attributable to Common Stockholders per Common Share – Diluted | | $ | 1.33 | | $ | 0.83 | | $ | 2.64 | | $ | 1.73 |
| Core FFO Attributable to Common Stockholders per Common Share – Diluted | | $ | 1.41 | | $ | 0.88 | | $ | 2.81 | | $ | 1.71 |
| AFFO Attributable to Common Stockholders per Common Share – Diluted | | $ | 1.48 | | $ | 1.07 | | $ | 2.96 | | $ | 2.03 |
| ^(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 13
CTO Realty Growth, Inc.
Non-GAAP Financial Measures
Reconciliation of Net Debt to Pro Forma EBITDA
(Unaudited)
(In thousands)
| **** | Three Months Ended June 30, 2022 | |
|---|---|---|
| Net Income Attributable to the Company | $ | 1,218 |
| Depreciation and Amortization of Real Estate | 6,707 | |
| Gains on Disposition of Other Assets | (632) | |
| Unrealized Loss on Investment Securities | 1,891 | |
| Distributions to Preferred Stockholders | | (1,196) |
| Straight-Line Rent Adjustment | (507) | |
| Amortization of Intangibles to Lease Income | 497 | |
| Other Depreciation and Amortization | (31) | |
| Amortization of Loan Costs and Discount on Convertible Debt | 212 | |
| Non-Cash Compensation | 705 | |
| Interest Expense, Net of Amortization of Loan Costs and Discount on Convertible Debt | 2,065 | |
| EBITDA | $ | 10,929 |
| | | |
| Annualized EBITDA | $ | 43,716 |
| Pro Forma Annualized Impact of Current Quarter Acquisitions and Dispositions, Net ^(1)^ | | 3,050 |
| Pro Forma EBITDA | $ | 46,766 |
| | | |
| Total Long-Term Debt | | 343,196 |
| Financing Costs, Net of Accumulated Amortization | | 1,194 |
| Unamortized Convertible Debt Discount | | 444 |
| Cash & Cash Equivalents | | (7,137) |
| Restricted Cash | | (27,189) |
| Net Debt | $ | 310,508 |
| | | |
| Net Debt to Pro Forma EBITDA | 6.6x | |
| | | |
| ^(1)^ | Reflects the pro forma annualized impact on Annualized EBITDA of the Company’s acquisition and disposition activity during the three months ended June 30, 2022. | |
| --- | --- |
Page 14
Exhibit 99.2
| Investor Presentation<br>REALTY GROWTH<br>July 2022<br>Madison Yards<br>Atlanta, GA | |
|---|---|
| © CTO Realty Growth, Inc. | ctoreit.com<br>Year<br>-<br>To<br>-<br>Date Highlights<br>2<br>Accretive<br>and<br>Opportunistic<br>Investment<br>Activity<br>▪<br>Total year<br>-<br>to<br>-<br>date investment volume of $177.0 million at a weighted average cap rate of 7.2%, including the following notable i<br>nvestments:<br>o<br>Acquired two multi<br>-<br>tenant retail income properties in Atlanta, GA and Houston, TX for a combined purchase price of $119.3 millio<br>n<br>o<br>Provided $30.0 million of preferred equity to fund the acquisition and repositioning of the Watters Creek at Montgomery Farm<br>gro<br>cery<br>-<br>anchored, mixed<br>-<br>use property in Allen, Texas at an initial preferred return of 8.5%<br>o<br>Provided $27.7 million of first mortgages for the development of two high<br>-<br>quality, multi<br>-<br>tenant retail projects in submarkets of<br>Atlanta, GA and<br>Orlando, FL at a blended initial rate of 7.8%<br>▪<br>Sold two single tenant income properties for total disposition volume of $24.0 million at a weighted average exit cap rate of<br>6.<br>0%<br>▪<br>Currently have several legacy office and non<br>-<br>core properties on the market for disposition<br>Strong<br>Financial<br>Performance<br>▪<br>Increased Core FFO and AFFO full year 2022 guidance by 9% and 3% per share at the midpoint, respectively, since the beginning<br>of<br>2022<br>▪<br>Completed three<br>-<br>for<br>-<br>one common stock split, effective July 1, 2022<br>▪<br>Declared a $0.3733 Q2 2022 quarterly common stock dividend (stock split adjusted), representing a 3.7% increase over the Q1 2<br>022<br>quarterly<br>common stock dividend and a 7.0% current annualized yield<br>Attractive<br>and<br>Well<br>Performing<br>Portfolio<br>▪<br>Year<br>-<br>to<br>-<br>date Q2 2022 Same<br>-<br>Property NOI increase of 20.3%, or 14.2% excluding one<br>-<br>time, non<br>-<br>repeatable items<br>▪<br>Currently 91.7% occupied and 93.7% leased<br>▪<br>Signed 98,000 square feet of new leases, renewals and extensions with increases of 16.7%<br>(1)<br>through the first two quarters of 2022<br>As of July 22, 2022, unless otherwise noted.<br>(1)<br>Excludes newly leased units that were acquired as vacant. |
| --- | |
| © CTO Realty Growth, Inc. | ctoreit.com<br>Company Profile<br>3<br>As of July 22, 2022, unless otherwise noted.<br>(1)<br>Based on $21.33 per share common stock price as of July 22, 2022.<br><br>$40M<br>INVESTMENT IN<br>ALPINE INCOME PROPERTY TRUST<br>$1.70<br>–<br>$1.76<br>AFFO PER SHARE GUIDANCE RANGE<br>(STOCK SPLIT ADJUSTED)<br>22<br>3.0M<br>7.2%<br>PROPERTIES<br>SQUARE FEET<br>IMPLIED CAP RATE<br>94%<br>LEASED<br>OCCUPANCY<br>Q2 2022 ANNUALIZED<br>DIVIDEND<br>(STOCK SPLIT ADJUSTED)<br>$1.49/share<br>7.0%<br>CURRENT ANNUALIZED<br>DIVIDEND YIELD<br>(1)<br>$391M<br>$399M<br>$856M<br>EQUITY MARKET CAP<br>(1)<br>OUTSTANDING DEBT<br>TOTAL ENTERPRISE VALUE<br>(NET OF CASH)<br>SERIES A PREFERRED<br>$75M<br>The Exchange at Gwinnet<br>Buford, GA |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Key Takeaways<br>4<br>Earnings<br>Growth<br>Through<br>Capital<br>Recycling<br>Strong,<br>long<br>-<br>term<br>track<br>record<br>of<br>monetizing<br>assets<br>at<br>favorable<br>spreads<br>to<br>drive<br>accretive<br>earnings<br>growth<br>and<br>attractive<br>risk<br>-<br>adjusted<br>returns<br>..<br>Attractive<br>Dividend<br>and<br>Improving<br>Payout<br>Ratio<br>CTO<br>paid<br>a<br>$<br>0<br>..<br>3733<br>second<br>quarter<br>cash<br>dividend<br>(stock<br>split<br>adjusted),<br>representing<br>a<br>7<br>..<br>0<br>%<br>in<br>-<br>place<br>annualized<br>yield<br>and<br>improving<br>AFFO<br>payout<br>ratio<br>(<br>86<br>%<br>based<br>on<br>the<br>midpoint<br>of<br>2022<br>AFFO<br>guidance)<br>driven<br>by<br>the<br>monetization<br>and<br>reinvestment<br>of<br>low<br>cap<br>rate,<br>single<br>tenant<br>properties<br>and<br>non<br>-<br>income<br>producing<br>assets<br>and<br>strong<br>same<br>-<br>store<br>net<br>operating<br>income<br>growth<br>..<br>Valuation upside to the Peer Group<br>Valuation<br>upside<br>as<br>CTO<br>is<br>faster<br>growing<br>with<br>a<br>comparable<br>2022<br>E<br>FFO<br>multiple<br>compared<br>to<br>the<br>slower<br>growing,<br>retail<br>-<br>focused<br>peers<br>..<br>Differentiated<br>Investment<br>Strategy<br>Retail<br>-<br>based<br>investment<br>strategy<br>focused<br>on<br>grocery<br>-<br>anchored,<br>traditional<br>retail<br>and<br>mixed<br>-<br>use<br>properties<br>with<br>value<br>-<br>add<br>or<br>long<br>-<br>term<br>residual<br>value<br>opportunities<br>with<br>strong<br>real<br>estate<br>fundamentals<br>in<br>growing<br>markets<br>that<br>can<br>be<br>acquired<br>at<br>meaningful<br>discounts<br>to<br>replacement<br>cost<br>..<br>High<br>-<br>Quality<br>Portfolio<br>in<br>Faster<br>Growing,<br>Business<br>Friendly<br>Locations<br>with<br>Operational<br>Upside<br>Recently<br>constructed<br>real<br>estate<br>portfolio<br>with<br>a<br>durable,<br>stable<br>tenant<br>base<br>located<br>in<br>faster<br>growing,<br>business<br>friendly<br>markets<br>such<br>as<br>Atlanta,<br>Dallas,<br>Raleigh,<br>Phoenix,<br>Jacksonville,<br>Tampa,<br>Houston,<br>and<br>Salt<br>Lake<br>City,<br>with<br>acquired<br>vacancy<br>and/or<br>repositioning<br>upside<br>..<br>Profitable<br>External<br>Investment<br>Management<br>External<br>management<br>of<br>Alpine<br>Income<br>Property<br>Trust,<br>Inc<br>..<br>(NYSE<br>:<br>PINE),<br>a<br>high<br>-<br>growth,<br>publicly<br>traded,<br>single<br>tenant<br>net<br>lease<br>REIT,<br>provides<br>excellent<br>in<br>-<br>place<br>cash<br>flow<br>and<br>significant<br>valuation<br>upside<br>through<br>the<br>CTO’s<br>16<br>%<br>retained<br>ownership<br>position<br>..<br>Stable<br>and<br>Flexible<br>Balance<br>Sheet<br>Conservatively<br>levered<br>balance<br>sheet<br>with<br>ample<br>liquidity,<br>no<br>near<br>-<br>term<br>debt<br>maturities<br>and<br>a<br>demonstrated<br>access<br>to<br>multiple<br>capital<br>sources<br>provides<br>financial<br>stability<br>and<br>flexibility<br>..<br>As of July 22, 2022, unless otherwise noted. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>NAV Components<br>5<br>Net Operating Income of Income Property Portfolio<br>(1)<br>$52.9<br>$52.9<br>$52.9<br>$52.9<br>$52.9<br>÷<br>Capitalization Rate<br>6.00%<br>6.25%<br>6.50%<br>6.75%<br>7.00%<br>Income Portfolio Value<br>$882.0<br>$846.8<br>$814.2<br>$784.0<br>$756.0<br>Other Assets:<br>+<br>Estimated Value for Subsurface Interests, Mitigation Credits and Other Assets<br>(2)<br>$20.0<br>$20.0<br>$20.0<br>$20.0<br>$20.0<br>+<br>Par Value Outstanding Balance of Structured Investments Portfolio<br>(2)<br>49.8<br>49.8<br>49.8<br>49.8<br>49.8<br>+<br>Cash, Cash Equivalents & Restricted Cash<br>9.5<br>9.5<br>9.5<br>9.5<br>9.5<br>+<br>Value of Shares & Units in Alpine Income Property Trust (PINE)<br>40.0<br>40.0<br>40.0<br>40.0<br>40.0<br>+<br>Value of PINE Management Agreement<br>(3)<br>9.5<br>9.5<br>9.5<br>9.5<br>9.5<br>Other Assets Value<br>$128.8<br>$128.8<br>$128.8<br>$128.8<br>$128.8<br>Total Implied Asset Value<br>$1,010.8<br>$975.6<br>$943.0<br>$912.8<br>$884.8<br>-<br>Total Debt Outstanding<br>(2)<br>$399.3<br>$399.3<br>$399.3<br>$399.3<br>$399.3<br>-<br>Series A Preferred Equity<br>$75.0<br>$75.0<br>$75.0<br>$75.0<br>$75.0<br>Note: 18,317,378 shares outstanding as of July 28, 2022.<br>(1)<br>Based on 2022 budgeted net operating income of the existing income property portfolio assets as of July 28, 2022.<br>(2)<br>As of July 28, 2022.<br>(3)<br>Calculated using the trailing 24<br>-<br>month average management fee paid to CTO by PINE as of June 30, 2022, annualized by multipl<br>ying 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>Recent Acquisition<br>–<br>Madison Yards, Atlanta, GA<br>6<br>Recently acquired 162,500 square foot grocery<br>anchored shopping center that has established Atlanta<br>as CTO’s top investment market<br>▪<br>Stable, high barrier<br>-<br>to<br>-<br>entry, in<br>-<br>fill location in Atlanta’s<br>Inman Park/Beltline submarket<br>▪<br>Over 445 feet of direct Beltline frontage, Atlanta’s 22<br>-<br>mile cultural, multiuse outdoor loop that attracts 1.7<br>million visitors annually<br>▪<br>True live, work, play property, anchored by Publix (17<br>years) and AMC (13 years), complimented by a service,<br>experiential and food driven tenant lineup<br>▪<br>All leases except for one have base term rent increases<br>▪<br>More than 500 directly adjacent multi<br>-<br>family units and<br>townhomes<br>▪<br>Population over 165,000 in a 3<br>-<br>mile radius; average<br>household income of $127,000 in one mile<br>▪<br>High<br>-<br>quality, class A property built in 2019<br>Madison Yards<br>Atlanta, GA<br>Madison Yards<br>Atlanta, GA<br>Madison Yards<br>Atlanta, GA<br>The Beltline<br>Madison Yards |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Consistent Dividend Growth<br>7<br>$0.01<br>$0.01<br>$0.02<br>$0.02<br>$0.02<br>$0.03<br>$0.05<br>$0.07<br>$0.12<br>$0.91<br>$1.33<br>$1.47<br>2011<br>2012<br>2013<br>2014<br>2015<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>2022<br>(1)<br>Implied 2022 dividend calculated as the paid Q1 and Q2 2022 dividends of $1.08 per common share and $1.12 per common share,<br>respectively, multiplied by two to annualize the dividends paid and indicate the dividends that could be paid in all of 2022.<br>T<br>he 2022 implied dividend is presented for<br>illustrative purposes only and there are no guarantees the Company will pay a dividend in the future.<br>(2)<br>2022E AFFO per share for CTO is the midpoint of guidance, as provided on July 28, 2022.<br>(3)<br>Based on $21.33 per share common stock price as of July 22, 2022.<br>▪<br>46 consecutive years of paying a common dividend<br>▪<br>Under current management (beginning in 2011),<br>the Company’s common stock cash dividend has<br>grown in each of the last 10 years<br>▪<br>Company policy is to target a payout ratio of 100%<br>of taxable income<br>▪<br>Dividend increases are driven by increasing<br>taxable income and free cash flow<br>▪<br>Current midpoint of guidance<br>(2)<br>implies an 86%<br>2022E AFFO per share dividend payout ratio<br>(1)<br>CTO converted to a REIT in<br>December of 2020, accelerating<br>the required dividend payout<br>Increasing cash flow and<br>earnings have driven a more<br>than<br>60% increase<br>to CTO’s<br>annualized common stock<br>dividend since 2020<br>Cash Dividend Per Share Paid (Split Adjusted)<br>Current Annualized Per Share Cash Dividend<br>$1.49<br>Annualized Per Share Cash Dividend Yield<br>(3)<br>7.0% |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Peer Comparisons<br>17.1x<br>13.9x<br>13.4x<br>13.4x<br>13.2x<br>12.2x<br>11.4x<br>10.6x<br>10.5x<br>10.2x<br>10.0x<br>4.2%<br>3.7%<br>4.1%<br>4.3%<br>7.0%<br>3.7%<br>4.4%<br>4.5%<br>4.5%<br>4.3%<br>5.0%<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>7.50%<br> 8.0x<br> 9.0x<br> 10.0x<br> 11.0x<br> 12.0x<br> 13.0x<br> 14.0x<br> 15.0x<br> 16.0x<br> 17.0x<br> 18.0x<br>FRT<br>KIM<br>UE<br>AAT<br>CTO<br>SITC<br>BRX<br>KRG<br>WSR<br>AKR<br>RPT<br>(1)<br>All 2022E peer FFO multiples and dividend yield information are based on the closing stock price on July 22, 2022, using annu<br>ali<br>zed dividends and 2022E FFO per share estimates from the KeyBank The Leaderboard report dated July 24, 2022; CTO’s FFO multip<br>le<br>and dividend yield is based on its<br>closing stock price on July 22, 2022, using its Q2 annualized dividend announced on May 24, 2022 (split adjusted), and 2022E<br>Cor<br>e FFO per share guidance as included in the Company’s 2022 Guidance provided on July 28, 2022.<br>CTO has an<br>outsized dividend yield<br>and<br>attractive absolute valuation<br>relative to its retail<br>-<br>focused peer group<br>and recent retail M&A multiples (KRG/RPAI and KIM/WRI), implying significant valuation upside.<br>2022E FFO Multiple and Annualized Dividend Yield<br>(1)<br>8<br>CTO is trading at an implied<br>7.2% cap rate<br>on its income<br>producing property NOI |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Differentiated Investment Strategy<br>9<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 organically drive higher cash flow, FFO 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 and Investment Strategy<br>CTO’s investment strategy is focused on generating relative outsized returns for our shareholders by acquiring and<br>owning well<br>-<br>located properties in markets and states that are business and tax friendly, where the long<br>-<br>term cash<br>flows and underlying real estate values are supported by significant population and job growth.<br>▪<br>Focused on markets/states projected to have outsized job<br>and population growth with favorable business climates<br>▪<br>Geographic emphasis set to benefit from strong retailer<br>demand to serve increasing populations<br>▪<br>Differentiated asset investment strategy prioritizes value<br>-<br>add retail and mixed<br>-<br>use properties with strong real estate<br>fundamentals<br>▪<br>Track record of acquiring at meaningful discounts to<br>replacement cost and below market leases where real<br>estate fundamentals will drive outsized rental rate growth<br>▪<br>Seek properties with leasing or repositioning upside or<br>highly stable assets with an identifiable opportunity to<br>drive long<br>-<br>term, outsized risk<br>-<br>adjusted returns<br>Miami<br>Orlando<br>Jacksonvill<br>e<br>Tampa<br>Atlanta<br>Nashville<br>Charlotte<br>Raleigh<br>-<br>Durham<br>Washington, DC<br>Dallas<br>Houston<br>Austin<br>Denver<br>Boulder<br>Salt Lake City<br>Las Vegas<br>Reno<br>Phoenix<br>10<br>CTO Target Market |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Meaningful Progress with Portfolio Repositioning<br>11<br>$365<br>$489<br>$349<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 July 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>12<br>Stable<br>Cash Flow<br>Essential<br>Retail<br>Repositioning<br>Upside<br>The Shops at Legacy<br>Plano, TX<br>Ashford Lane<br>Atlanta, GA<br>125 Lincoln & 150 Washington<br>Santa Fe, NM<br>Madison Yards<br>Atlanta, GA<br>The Exchange at Gwinnett<br>Buford, GA<br>The Strand at St. John’s Town Center<br>Jacksonville, FL<br>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>13<br>Percentages listed based on Annualized Base Rent. Differences are a result of rounding.<br>(1)<br>Source: Esri; Portfolio average weighted by the Annualized Base Rent of each property.<br>(2)<br>As ranked by Urban Land Institute & PWC in the ‘2022 Emerging Trends in Real Estate’ publication.<br>Income Producing Property<br>Atlanta, GA<br>23%<br>Jacksonville, FL<br>14%<br>Dallas, TX<br>14%<br>Raleigh, NC<br>9%<br>Phoenix, AZ<br>8%<br>Albuquerque, NM<br>6%<br>Houston, TX<br>5%<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>240,100<br>Portfolio Average<br>5<br>-<br>Mile Population<br>(1)<br>$123,850<br>Portfolio Average<br>5<br>-<br>Mile Household Income<br>(1)<br>0.9%<br>Portfolio Average 2022<br>-<br>2027<br>Projected Annual Population Growth<br>(1)<br>74%<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>14<br>3%<br>5%<br>4%<br>7%<br>13%<br>10%<br>16%<br>8%<br>6%<br>5%<br>4%<br>19%<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 2022<br>▪<br>YTD Q2 2022 Year<br>-<br>Over<br>-<br>Year Same<br>-<br>Property NOI<br>20.3%<br>o<br>30.2% YTD Q2 2022 multi<br>-<br>tenant same<br>-<br>property NOI growth<br>o<br>4.0% YTD Q2 2022 single tenant same<br>-<br>property NOI growth<br>▪<br>YTD Q2 2022 Leasing Spreads<br>16.7%<br>o<br>71.5% new lease spreads (excluding acquired vacancy)<br>o<br>2.0% option & renewal spreads<br>▪<br>Leased Occupancy<br>93.7%<br>o<br>Over<br>200 bps of future occupancy pickup<br>based on current<br>spread between Occupancy and Leased Occupancy<br>As of July 22, 2022, unless otherwise noted. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Repositioning<br>–<br>Ashford Lane, Atlanta, GA<br>15<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>5<br>-<br>mile population of more than 248,000; 5<br>-<br>mile<br>average household income of $164,000<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>16<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>17<br>Ashford Lane is being repositioned as a higher<br>-<br>end<br>shopping and dining destination within a growing<br>and relatively affluent submarket of Atlanta<br>▪<br>Opportunity to deliver increased rental rates with<br>higher<br>-<br>end tenants supported by new multi<br>-<br>family<br>and office development<br>▪<br>Additional green space, outdoor seating and eating<br>areas will support improved foot traffic and offer<br>restaurant<br>-<br>focused amenities<br>▪<br>Signed new leases with the following notable tenants<br>in 2021 and 2022:<br>Ashford Lane<br>Atlanta, GA<br>Ashford Lane<br>Atlanta, GA<br>Ashford Lane<br>Atlanta, GA<br>Ashford Lane<br>Atlanta, GA<br>Ashford Lane<br>Atlanta, GA |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Repositioning<br>–<br>125 Lincoln & 150 Washington, Santa Fe, NM<br>18<br>Recently signed a 9,200 square foot<br>lease with the Rosewood Inn of<br>Anasazi operator who will create<br>four high<br>-<br>end suites on the 4<br>th<br>floor<br>▪<br>Two<br>-<br>building property with dedicated<br>underground parking in the heart of Santa Fe,<br>just north of the historic Santa Fe Plaza<br>▪<br>Recently installed paid parking system to drive<br>increased operational cash flow<br>▪<br>Currently negotiating letters of intent and forms<br>of lease with multiple prospective tenants<br>▪<br>Prime 12,000 square foot street<br>-<br>level vacancy<br>available for lease to anchor the property’s<br>repositioning in the market<br>Plaza<br>125 Lincoln & 150 Washington<br>Santa Fe, NM<br>125 Lincoln & 150 Washington<br>Santa Fe, NM<br>125 Lincoln & 150 Washington<br>Santa Fe, NM |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>2022 Guidance<br>19<br>$ and shares outstanding in millions, except per share data.<br>As of July 28, 2022, unless otherwise noted.<br>(1)<br>The effect of the Company’s recently announced three<br>-<br>for<br>-<br>one stock split has been accounted for in the Company’s revised guidanc<br>e.<br>CTO has provided guidance indicating as much as<br>25% year<br>-<br>over<br>-<br>year Core FFO per share growth<br>in 2022.<br>Low<br>High<br>Investments<br>$250 million<br>–<br>$275 million<br>$177.0 million of investments<br>Target Initial Cash Yield<br>7.00%<br>–<br>7.25%<br>7.2%<br>Dispositions<br>$50 million<br>–<br>$80 million<br>$24.0 million of dispositions<br>Target Disposition Cash Yield<br>6.25%<br>–<br>6.75%<br>6.0%<br>Core FFO Per Diluted Share<br>$1.58<br>–<br>$1.64<br>$0.94 in YTD Q2 2022<br>AFFO Per Diluted Share<br>$1.70<br>–<br>$1.76<br>$0.99 in YTD Q2 2022<br>Weighted Average Diluted<br>Shares Outstanding<br>18.3 million<br>–<br>18.5 million<br>18.3 million<br>Revised 2022<br>(1)<br>Year<br>-<br>To<br>-<br>Date Performance |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Balance Sheet<br>20<br>$51<br>$83<br>$100<br>$111<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>111.0 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>$344.8 million<br>As of June 30, 2022.<br>$ 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 $111.0 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 satisfact<br>ion 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 (i) its redesignation of the<br>existing $50.0 million interest rate swap, entered into as of August 31, 2020, and (ii) a $15.0 million interest rate swap ef<br>fe<br>ctive 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 (i) its redesignation of th<br>e existing $100.0 million interest rate swap, entered into as of March 31, 2020, and (ii) an additional interest rate swap, e<br>ffe<br>ctive 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 $133 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>41% net debt<br>-<br>to<br>-<br>total<br>enterprise value (TEV)<br>▪<br>6.6x Net Debt<br>-<br>to<br>-<br>Pro Forma<br>EBITDA<br>(2) |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Experienced Management Team<br>CTO Realty Growth is led by an experienced management team with<br>meaningful shareholder alignment<br>, deep<br>industry relationships and a strong long<br>-<br>term track record.<br>21<br>John P. Albright<br>President & Chief Executive Officer<br>▪<br>Former Co<br>-<br>Head and Managing Director of Archon Capital, a Goldman<br>Sachs Company; Executive Director of Merchant Banking<br>–<br>Investment<br>Management at Morgan Stanley; and Managing Director of Crescent Real<br>Estate (NYSE: CEI)<br>Daniel E. Smith<br>Senior Vice President, General Counsel & Corporate Secretary<br>▪<br>Former Vice President and Associate General Counsel of Goldman Sachs<br>& Co. and Senior Vice President and General Counsel of Crescent Real<br>Estate (NYSE: CEI)<br>Lisa M. Vorakoun<br>Vice President & Chief Accounting Officer<br>▪<br>Former Assistant Finance Director for the City of DeLand, Florida and<br>Audit Manager for James Moore & Company, an Accounting and<br>Consulting Firm<br>Matthew M. Partridge<br>Senior Vice President, Chief Financial Officer & Treasurer<br>▪<br>Former Chief Operating Officer and Chief Financial Officer of Hutton;<br>Executive Vice President, Chief Financial Officer and Secretary of Agree<br>Realty Corporation (NYSE: ADC); and Vice President of Finance for<br>Pebblebrook Hotel Trust (NYSE: PEB)<br>Steven R. Greathouse<br>Senior Vice President & Chief Investment Officer<br>▪<br>Former Director of Finance for N3 Real Estate; Senior Associate of<br>Merchant Banking<br>–<br>Investment Management at Morgan Stanley; and<br>Senior Associate at Crescent Real Estate (NYSE: CEI)<br>Helal A. Ismail<br>Vice President<br>–<br>Investments<br>▪<br>Former Associate of Jefferies Real Estate Gaming and Lodging<br>Investment Banking and Manager at B<br>-<br>MAT Homes, Inc. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>ESG<br>–<br>Corporate Responsibility<br>CTO Realty Growth is committed to sustainability, strong corporate governance,<br>and meaningful corporate social responsibility programs.<br>22<br>Social Responsibility<br>Inclusive and Supportive Company Culture<br>▪<br>Dedicated to an inclusive and supportive office environment filled with diverse backgrounds<br>and perspectives, with a demonstrated commitment to financial, mental and physical wellness<br>Notable Community Outreach<br>▪<br>Numerous and diverse community outreach programs, supporting environmental, artistic, civil<br>and social organizations in the community<br>Corporate Governance<br>▪<br>Independent Chairman of the Board and 5 of<br>6 Directors classified as independent<br>▪<br>Annual election of all Directors<br>▪<br>Annual Board of Director evaluations<br>▪<br>Board oversees risk assessment/management,<br>with oversight for specific areas of risk<br>delegated to Board committees<br>▪<br>Stock ownership requirements for all<br>Executive Management and Directors<br>▪<br>Prohibition against hedging and pledging<br>CTO Realty Growth stock<br>▪<br>Robust policies and procedures for approval of<br>related party transactions<br>▪<br>All team members adhere to a comprehensive<br>Code of Business Conduct and Ethics policy |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>ESG<br>–<br>Environmental Responsibility<br>23<br>Over the past nine years,<br>CTO has planted<br>approximately 170,000<br>pine trees in Florida and<br>has restored over 700<br>acres of former industrial<br>timberland. These<br>170,000 trees absorb<br>more than 1,000 tons of<br>carbon each year.<br>Environmental Responsibility<br>Committed Focus & Targeted Investment<br>▪<br>Committed to maintaining an environmentally conscious culture, the<br>utilization of environmentally friendly & renewable products, and the<br>promotion of sustainable business practices. Notable achievements:<br>o<br>Formed a conservation mitigation bank on approximately 2,500<br>acres of land, resulting in the land being barred from<br>development permanently preserved<br>o<br>Invested in LED lighting, recycling and waste reduction<br>strategies, programmable thermostats, energy management<br>systems in our office and/or at our owned properties<br>o<br>Conveyed over 11,000 acres of land to the State of Florida to<br>significantly enlarge the neighboring Tiger Bay State Forest<br>Tenant Alignment<br>▪<br>Alignment with environmentally aware tenants who have strong<br>sustainability programs and initiatives embedded into their corporate<br>culture and business practices |
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| 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>25<br>Property<br>Market<br>Asset Type<br>Property<br>Type<br>Square<br>Feet<br>In<br>-<br>Place<br>Occupancy<br>Leased<br>Occupancy<br>% of ABR<br>The Shops at Legacy<br>–<br>Plano, TX<br>Dallas, TX<br>Multi<br>-<br>Tenant<br>Mixed Use<br>237,572<br>92%<br>96%<br>13%<br>Ashford Lane<br>–<br>Atlanta, GA<br>Atlanta, GA<br>Multi<br>-<br>Tenant<br>Retail<br>282,839<br>71%<br>80%<br>10%<br>Beaver Creek Crossings<br>–<br>Apex, NC<br>Raleigh, NC<br>Multi<br>-<br>Tenant<br>Retail<br>321,977<br>96%<br>98%<br>9%<br>Madison Yards<br>–<br>Atlanta, GA<br>Atlanta, GA<br>Multi<br>-<br>Tenant<br>Retail<br>162,521<br>96%<br>98%<br>9%<br>The Strand<br>–<br>Jacksonville, FL<br>Jacksonville, FL<br>Multi<br>-<br>Tenant<br>Retail<br>204,552<br>95%<br>95%<br>8%<br>Crossroads Towne Center<br>–<br>Chandler, AZ<br>Phoenix, AZ<br>Multi<br>-<br>Tenant<br>Retail<br>244,843<br>100%<br>100%<br>8%<br>Fidelity<br>–<br>Albuquerque, NM<br>Albuquerque, NM<br>Single Tenant<br>Office<br>210,067<br>100%<br>100%<br>6%<br>Price Plaza Shopping Center<br>–<br>Katy, TX<br>Houston, TX<br>Multi<br>-<br>Tenant<br>Retail<br>205,813<br>95%<br>95%<br>5%<br>245 Riverside<br>–<br>Jacksonville, FL<br>Jacksonville, FL<br>Multi<br>-<br>Tenant<br>Office<br>136,853<br>91%<br>92%<br>5%<br>125 Lincoln & 150 Washington<br>-<br>Santa Fe, NM<br>Santa Fe, NM<br>Multi<br>-<br>Tenant<br>Mixed Use<br>137,659<br>74%<br>85%<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>89%<br>89%<br>4% |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Schedule of Properties<br>26<br>Property<br>Market<br>Asset Type<br>Property<br>Type<br>Square<br>Feet<br>In<br>-<br>Place<br>Occupancy<br>Leased<br>Occupancy<br>% of ABR<br>Sabal Pavilion<br>–<br>Tampa, FL<br>Tampa, FL<br>Single Tenant<br>Office<br>120,500<br>100%<br>100%<br>4%<br>Jordan Landing<br>–<br>West Jordan, UT<br>Salt Lake City, UT<br>Multi<br>-<br>Tenant<br>Retail<br>170,996<br>100%<br>100%<br>3%<br>Westland Gateway Plaza<br>–<br>Hialeah, FL<br>Miami, FL<br>Multi<br>-<br>Tenant<br>Retail<br>108,029<br>100%<br>100%<br>3%<br>Eastern Commons<br>–<br>Henderson, NV<br>Las Vegas, NV<br>Multi<br>-<br>Tenant<br>Retail<br>133,304<br>100%<br>100%<br>3%<br>General Dynamics<br>–<br>Reston, VA<br>Washington, DC<br>Single Tenant<br>Office<br>64,319<br>100%<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>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>60%<br>1%<br>Chuy’s<br>–<br>Jacksonville, FL<br>Jacksonville, FL<br>Single Tenant<br>Retail<br>7,950<br>100%<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>100%<br>< 1%<br>Firebirds<br>–<br>Jacksonville, FL<br>Jacksonville, FL<br>Single Tenant<br>Retail<br>6,948<br>100%<br>100%<br>< 1%<br>Crabby’s Oceanside<br>–<br>Daytona Beach, FL<br>Daytona Beach, FL<br>Single Tenant<br>Retail<br>5,780<br>100%<br>100%<br>< 1% |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Forward Looking Statements & Non<br>-<br>GAAP Financial Measures<br>27<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>28<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>29<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>July<br>28<br>,<br>2022<br>..<br>▪<br>All<br>information<br>is<br>as<br>of<br>June<br>30<br>,<br>2022<br>,<br>unless<br>otherwise<br>noted<br>..<br>▪<br>Any<br>calculation<br>differences<br>are<br>assumed<br>to<br>be<br>a<br>result<br>of<br>rounding<br>..<br>▪<br>“<br>2022<br>Guidance”<br>is<br>based<br>on<br>the<br>2022<br>Outlook<br>provided<br>in<br>the<br>Company’s<br>Second<br>Quarter<br>2022<br>Operating<br>Results<br>press<br>release<br>filed<br>on<br>July<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>July<br>28<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>147<br>,<br>510<br>common<br>shares<br>and<br>partnership<br>units<br>CTO<br>owns<br>in<br>PINE<br>and<br>is<br>based<br>on<br>PINE’s<br>closing<br>stock<br>price<br>..<br>▪<br>“Leased<br>Occupancy”<br>refers<br>to<br>space<br>that<br>is<br>currently<br>leased<br>but<br>for<br>which<br>rent<br>payments<br>have<br>not<br>yet<br>commenced<br>..<br>▪<br>“MSA”<br>or<br>“Metropolitan<br>Statistical<br>Area”<br>is<br>a<br>region<br>that<br>consists<br>of<br>a<br>city<br>and<br>surrounding<br>communities<br>that<br>are<br>linked<br>by<br>social<br>and<br>economic<br>factors,<br>as<br>established<br>by<br>the<br>U<br>..<br>S<br>..<br>Office<br>of<br>Management<br>and<br>Budget<br>..<br>The<br>names<br>of<br>the<br>MSA<br>have<br>been<br>shortened<br>for<br>ease<br>of<br>reference<br>..<br>▪<br>“Net<br>Debt”<br>is<br>calculated<br>as<br>our<br>total<br>long<br>-<br>term<br>debt<br>as<br>presented<br>on<br>the<br>face<br>of<br>our<br>balance<br>sheet<br>;<br>plus<br>financing<br>costs,<br>net<br>of<br>accumulated<br>amortization<br>and<br>unamortized<br>convertible<br>debt<br>discount<br>;<br>less<br>cash,<br>restricted<br>cash<br>and<br>cash<br>equivalents<br>..<br>▪<br>“Net<br>Operating<br>Income”<br>or<br>“NOI”<br>is<br>revenues<br>from<br>all<br>income<br>properties<br>less<br>operating<br>expense,<br>maintenance<br>expense,<br>real<br>estate<br>taxes<br>and<br>rent<br>expense<br>..<br>▪<br>“Total<br>Enterprise<br>Value”<br>is<br>calculated<br>as<br>the<br>Company’s<br>Total<br>Common<br>Shares<br>Outstanding<br>multiplied<br>by<br>the<br>common<br>stock<br>price<br>;<br>plus<br>the<br>par<br>value<br>of<br>the<br>Series<br>A<br>perpetual<br>preferred<br>equity<br>outstanding<br>and<br>Net<br>Debt<br>..<br>▪<br>“Total<br>Common<br>Shares<br>Outstanding”<br>equaled<br>18<br>,<br>317<br>,<br>378<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>30<br>CTO Realty Growth, Inc.<br>Consolidated Statements of Operations<br>(Unaudited, in thousands, except share, per share and dividend data)<br>Three<br>Months<br>Ended<br>Six Months Ended<br>June<br>30, 2022<br>June<br>30, 2021<br>June<br>30, 2022<br>June<br>30, 2021<br>Revenues<br>Income Properties<br>$<br>16,367<br>$<br>11,574<br>$<br>31,535<br>$<br>23,023<br>Management Fee Income<br>948<br>752<br>1,884<br>1,421<br>Interest Income From Commercial Loans and Investments<br>1,290<br>709<br>2,008<br>1,410<br>Real Estate Operations<br>858<br>1,248<br>1,246<br>3,141<br>Total Revenues<br>19,463<br>14,283<br>36,673<br>28,995<br>Direct Cost of Revenues<br>Income Properties<br>(4,812)<br>(2,787)<br>(8,828)<br>(5,704)<br>Real Estate Operations<br>(228)<br>(533)<br>(279)<br>(615)<br>Total Direct Cost of Revenues<br>(5,040)<br>(3,320)<br>(9,107)<br>(6,319)<br>General and Administrative Expenses<br>(2,676)<br>(2,665)<br>(5,719)<br>(5,797)<br>Impairment Charges<br>—<br>(16,527)<br>—<br>(16,527)<br>Depreciation and Amortization<br>(6,727)<br>(5,031)<br>(13,096)<br>(9,861)<br>Total Operating Expenses<br>(14,443)<br>(27,543)<br>(27,922)<br>(38,504)<br>Gain (Loss) on Disposition of Assets<br>—<br>4,732<br>(245)<br>5,440<br>Gain (Loss) on Extinguishment of Debt<br>—<br>(641)<br>—<br>(641)<br>Other Gains and Income (Loss)<br>—<br>4,091<br>(245)<br>4,799<br>Total Operating Income (Loss)<br>5,020<br>(9,169)<br>8,506<br>(4,710)<br>Investment and Other Income (Loss)<br>(1,311)<br>3,903<br>(3,205)<br>9,235<br>Interest Expense<br>(2,277)<br>(2,421)<br>(4,179)<br>(4,865)<br>Income (Loss) Before Income Tax Benefit (Expense)<br>1,432<br>(7,687)<br>1,122<br>(340)<br>Income Tax Benefit (Expense)<br>(214)<br>3,963<br>298<br>4,401<br>Net Income (Loss) Attributable to the Company<br>1,218<br>(3,724)<br>1,420<br>4,061<br>Distributions to Preferred Stockholders<br>(1,196)<br>—<br>(2,391)<br>—<br>Net Income (Loss) Attributable to Common Stockholders<br>$<br>22<br>$<br>(3,724)<br>$<br>(971)<br>$<br>4,061<br>Per Share Information<br>Basic and Diluted Net Income (Loss) Attributable to Common Stockholders<br>$<br>0.00<br>$<br>(0.63)<br>$<br>(0.16)<br>$<br>0.69<br>Weighted Average Number of Common Shares<br>Basic and Diluted<br>6,004,178<br>5,898,280<br>5,956,798<br>5,888,735 |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Same<br>-<br>Property NOI<br>31<br>Three<br>Months<br>Ended<br>June 30, 2022<br>June 30, 2021<br>Net Income Attributable to the Company<br>$<br>1,218<br>$<br>(3,724)<br>(Gain) Loss on Disposition of Assets<br>—<br>(4,732)<br>Loss on Extinguishment of Debt<br>—<br>641<br>Impairment Charges<br>—<br>16,527<br>Depreciation and Amortization<br>6,727<br>5,031<br>Amortization of Intangibles to Lease Income<br>(497)<br>338<br>Straight<br>-<br>Line Rent Adjustment<br>507<br>490<br>COVID<br>-<br>19 Rent Repayments<br>(26)<br>(434)<br>Other Income Property Related Non<br>-<br>Cash Amortization<br>38<br>38<br>Interest Expense<br>2,277<br>2,421<br>General and Administrative Expenses<br>2,676<br>2,665<br>Investment and Other Income (Loss)<br>1,311<br>(3,903)<br>Income Tax Benefit<br>214<br>(3,963)<br>Real Estate Operations Revenues<br>(858)<br>(1,248)<br>Real Estate Operations Direct Cost of Revenues<br>228<br>533<br>Management Fee Income<br>(948)<br>(752)<br>Interest Income from Commercial Loan and Master Lease Investments<br>(1,290)<br>(709)<br>Less: Impact of Properties Not Owned the Full Reporting Period<br>(4,494)<br>(3,557)<br>Cash Rental Income Received from Properties Presented as<br>Commercial Loan and Master Lease Investments<br>363<br>354<br>Same<br>-<br>Property NOI<br>$<br>7,446<br>$<br>6,016<br>Year<br>-<br>Over<br>-<br>Year Growth<br>23.8%<br>CTO Realty Growth, Inc.<br>Same<br>-<br>Property NOI Reconciliation<br>(Unaudited, in thousands) |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Non<br>-<br>GAAP Financial Measures<br>32<br>Three<br>Months<br>Ended<br>Six<br>Months<br>Ended<br>June 30, 2022<br>June 30, 2021<br>June 30, 2022<br>June 30, 2021<br>Net Income Attributable to the Company<br>$<br>1,218<br>$<br>(3,724)<br>$<br>1,420<br>$<br>4,061<br>Add Back: Effect of Dilutive Interest Related to 2025 Convertible Senior Notes<br>(1)<br>—<br>—<br>—<br>—<br>Net Income Attributable to the Company, If<br>-<br>Converted<br>$<br>1,218<br>$<br>(3,724)<br>$<br>1,420<br>$<br>4,061<br>Depreciation and Amortization<br>6,707<br>5,031<br>13,076<br>9,861<br>Gains (Loss) on Disposition of Assets<br>—<br>(4,732)<br>245<br>(5,440)<br>Gain on Disposition of Other Assets<br>(632)<br>(748)<br>(964)<br>(2,575)<br>Impairment Charges, Net<br>—<br>12,474<br>—<br>12,474<br>Unrealized (Gain) Loss on Investment Securities<br>1,891<br>(3,386)<br>4,348<br>(8,220)<br>Funds from Operations<br>$<br>9,184<br>$<br>4,915<br>$<br>18,125<br>$<br>10,161<br>Distributions to Preferred Stockholders<br>(1,196)<br>—<br>(2,391)<br>—<br>Funds from Operations Attributable to Common Stockholders<br>$<br>7,988<br>$<br>4,915<br>$<br>15,734<br>$<br>10,161<br>Loss on Extinguishment of Debt<br>—<br>641<br>—<br>641<br>Amortization of Intangibles to Lease Income<br>497<br>(338)<br>978<br>(734)<br>Less: Effect of Dilutive Interest Related to 2025 Convertible Senior Notes<br>(1)<br>—<br>—<br>—<br>—<br>Core Funds from Operations Attributable to Common Stockholders<br>$<br>8,485<br>$<br>5,218<br>$<br>16,712<br>$<br>10,068<br>Adjustments:<br>Straight<br>-<br>Line Rent Adjustment<br>(507)<br>(490)<br>(1,045)<br>(1,175)<br>COVID<br>-<br>19 Rent Repayments<br>26<br>434<br>53<br>654<br>Other Depreciation and Amortization<br>(31)<br>(150)<br>(170)<br>(374)<br>Amortization of Loan Costs and Discount on Convertible Debt<br>212<br>478<br>446<br>953<br>Non<br>-<br>Cash Compensation<br>705<br>742<br>1,611<br>1,700<br>Non<br>-<br>Recurring G&A<br>—<br>62<br>—<br>155<br>Adjusted Funds from Operations Attributable to Common Stockholders<br>$<br>8,890<br>$<br>6,294<br>$<br>17,607<br>$<br>11,981<br>FFO Attributable to Common Stockholders per Common Share<br>–<br>Diluted<br>$<br>1.33<br>$<br>0.83<br>$<br>2.64<br>$<br>1.73<br>Core FFO Attributable to Common Stockholders per Common Share<br>–<br>Diluted<br>$<br>1.41<br>$<br>0.88<br>$<br>2.81<br>$<br>1.71<br>AFFO Attributable to Common Stockholders per Common Share<br>–<br>Diluted<br>$<br>1.48<br>$<br>1.07<br>$<br>2.96<br>$<br>2.03<br>CTO Realty Growth, Inc.<br>Non<br>-<br>GAAP Financial Measures<br>(Unaudited, in thousands, except per share data)<br>(1)<br>Interest related to the 2025 Convertible Senior Notes excluded from net income attributable to the Company to derive FFO effe<br>cti<br>ve January 1, 2022 due to the implementation of ASU 2020<br>-<br>06 which requires presentation on an if<br>-<br>converted basis, as the impact<br>to net income attributable to common<br>stockholders would be anti<br>-<br>dilutive. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Net Debt to Pro Forma EBITDA<br>33<br>CTO Realty Growth, Inc.<br>Reconciliation of Net Debt to Pro Forma EBITDA<br>(Unaudited, in thousands)<br>Three Months Ended<br>June 30, 2022<br>Net Income Attributable to the Company<br>$<br>1,218<br>Depreciation and Amortization<br>6,707<br>Gains on the Disposition of Other Assets<br>(632)<br>Unrealized Loss on Investment Securities<br>1,891<br>Distributions to Preferred Stockholders<br>(1,196)<br>Straight<br>-<br>Line Rent Adjustment<br>(507)<br>Amortization of Intangibles to Lease Income<br>497<br>Other Depreciation and Amortization<br>(31)<br>Amortization of Loan Costs and Discount on Convertible Debt<br>212<br>Non<br>-<br>Cash Compensation<br>705<br>Interest Expense, Net of Amortization of Loan Costs and Discount on Convertible Debt<br>2,065<br>EBITDA<br>$<br>10,929<br>Annualized EBITDA<br>$<br>43,716<br>Pro Forma Annualized Impact of Current Quarter Acquisitions and Dispositions, Net<br>(1)<br>3,050<br>Pro Forma EBITDA<br>$<br>46,766<br>Total Long<br>-<br>Term Debt<br>343,196<br>Financing Costs, Net of Accumulated Amortization<br>1,194<br>Unamortized Convertible Debt Discount<br>444<br>Cash & Cash Equivalents<br>(7,137)<br>Restricted Cash<br>(27,189)<br>Net Debt<br>$<br>310,508<br>Net Debt to Pro Forma EBITDA<br>6.6x<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 June 30, 2022. |
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| REALTY GROWTH<br>The Strand at St. John’s Town Center<br>Jacksonville, FL | |
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Exhibit 99.3
| © CTO Realty Growth, Inc. | ctoreit.com<br>REALTY GROWTH<br>Supplemental Reporting Information<br>Q2 2022 | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>1.<br>Second Quarter 2022 Earnings Release<br>3<br>2.<br>Key Financial Information<br>▪<br>Consolidated Balance Sheets<br>12<br>▪<br>Consolidated Statements of Operations<br>13<br>▪<br>Non<br>-<br>GAAP Financial Measures<br>14<br>3.<br>Capitalization & Dividends<br>17<br>4.<br>Summary of Debt<br>18<br>5.<br>Investments<br>19<br>6.<br>Dispositions<br>2<br>0<br>7.<br>Portfolio Detail<br>21<br>8.<br>Leasing Summary<br>23<br>9.<br>Lease Expirations<br>24<br>10.<br>Top Tenant Summary<br>25<br>11.<br>Geographic Diversification<br>26<br>12.<br>Other Assets<br>27<br>13.<br>2022 Guidance<br>28<br>14.<br>Contact Information & Research Coverage<br>29<br>15.<br>Safe Harbor, Non<br>-<br>GAAP Financial Measures, and Definitions and Terms<br>30<br>Table of Contents | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>3<br><br><br><br>Press Release<br><br><br>Contact:<br><br>Matthew M. Partridge<br><br>Senior Vice President<br>,<br>Chief Financial Officer<br><br>and Treasurer<br><br>(407) 904<br>-<br>3324<br><br>mpartridge@ctoreit.com<br><br><br>FOR<br><br>IMMEDIATE<br><br>RELEASE<br><br><br>CTO<br>REALTY<br>GROWTH<br><br>REPORTS<br><br>SECOND<br><br><br>QUARTER<br><br>202<br>2<br><br>OPERATING<br><br>RESULTS<br><br>WINTER PARK<br>, FL<br>–<br><br>July<br><br>2<br>8<br>,<br><br>20<br>2<br>2<br><br>–<br><br>CTO Realty<br><br>Growth, Inc.<br><br>(NYSE: CTO) (the “Company”<br><br>or<br><br>“CTO”<br>) today<br>announced its operating results and earnings for the quarter<br>ended<br><br>June 30<br>, 202<br>2<br>..<br><br><br><br>Select Highlights<br><br><br>▪<br><br>Reported Net<br>Income<br><br>per diluted share<br><br>attributable to common stockholders of<br><br>$0.0<br>0<br><br>for the quarter ended<br>June<br>30<br>, 202<br>2<br>, a<br>n increase<br>of 1<br>00.0<br>%<br>from the comparable prior year period<br>..<br><br><br>▪<br><br>Reported<br><br>Core<br><br>FFO per diluted share<br>attributable to common stockholders<br>of $1.4<br>1<br><br>for the quarter ended June<br>30, 2022, an increase of<br>60.2<br>% from the comparable prior year period.<br><br><br>▪<br><br>Reported<br>AFFO<br>per diluted share<br>attributable to common stockholders<br>of<br>$<br>1.<br>4<br>8<br><br>for the quarter ended<br>June 30,<br><br>202<br>2<br>, an increase of<br>38.3<br>% from the comparable prior year period<br>..<br><br>▪<br><br>Entered into a preferred equity agreement to provide $30.0 million of funding towards the acquisition of the<br>Watters Creek at Montgomery Farm in Allen, Texas at an initial investment yield above the range of the<br>Company’s guidance for initial investment ca<br>sh yields.<br><br>▪<br><br>Entered into a loan agreement to provide $19.0 million of funding towards the development of the retail portion<br>of<br>the<br>WaterStar Orlando<br>mixed<br>-<br>use property<br>in<br>Kissimmee<br>,<br>FL<br><br>at an initial investment yield above the range<br>of the Company’<br>s gu<br>idanc<br>e for initial investment cash yields.<br><br>▪<br><br>Reported<br>a<br>23.8<br>% increase<br><br>in Same<br>-<br>Property NOI during the quarter ended June 30, 2022, as compared to the<br>comparable prior year period<br>..<br><br>▪<br><br>Paid a regular common stock cash dividend during the second quarter of 2022 of $1.12 per share,<br>representing<br>an increase of<br>12.0<br>% from the compar<br>able prior year period<br>,<br>a payout ratio<br>of<br>75.7% of the Company’s second<br>quarter 2022 AFFO per diluted share,<br><br>and an annualized yield of<br>6.9<br>% based on the closing price of the<br>Company’s common stock on<br>July<br><br>2<br>7<br>, 202<br>2<br>..<br><br><br>▪<br><br>Completed a three<br>-<br>for<br>-<br>one stock split<br>and<br><br>began trading at the post<br>-<br>split price on July 1, 2022<br>.. The stock split<br>was<br><br>effected in the form of a stock dividend of two additional shares of common stock for each outstanding<br>share of common stock<br><br>held as of the record date for the stock dividend<br>..<br><br>▪<br><br>O<br>n July 8, 2022, the Company acquired Madison Yards, a<br>newly built, grocery<br>-<br>anchored retail<br><br>property located<br>in Atlanta, Georgia for a purchase price of $80.2 million. The purchase price represents a going<br>-<br>in cap rate<br>below the range of the Company’s<br>prior<br>guidance for initial cash yields. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>4<br>CEO Comments<br><br><br>“I am<br>very<br>encouraged by our second quarter performance as our team<br><br>continues<br>to make strong operational progress<br>with our leasing and repositioning initiatives and<br>find<br>s<br><br>attractive opportunities<br>for external growth through our<br>disciplined<br>,<br><br>retail<br>-<br>focused<br>investment strategy<br>,”<br>said John P. Albright, President and Chief Executive Off<br>icer of CTO<br>Realty Growth. “<br>Our recent Madison Yards acquisition<br><br>was a<br>great<br><br>opportunity to acquire a<br>newly built grocery<br>-<br>anchored shopping center in<br>one of the strongest markets in the country<br>, further<br>improving our already high<br>-<br>quality,<br>growth market<br>-<br>ori<br>ented<br><br>portfolio.<br>With<br>year<br>-<br>to<br>-<br>date same<br>-<br>store NOI growth of more than 20<br>%<br><br>and over 200 bps of<br>leased occupancy set to rent commence over the next twelve months,<br>we’re<br><br>very excited about our<br>prospects to drive<br>double digit same<br>-<br>store NOI growth<br><br>during the<br>back half of this year<br><br>and<br>in<br>2023<br>..<br><br>This embedded growth should<br>continue to help drive<br>strong<br><br>earnings for the foreseeable future and further support our attractive and growing<br>dividend.<br>”<br><br><br><br>Quarterly<br>Financial Results Highlights<br><br><br>The table<br>s<br><br>below<br>provide<br><br>a summary of the Company’s operating results for the<br>three<br><br>months ended<br>June 30<br>, 202<br>2<br>:<br><br><br>(in thousands, except per share data)<br><br>For the Three<br><br>Months Ended<br><br>June<br><br>3<br>0<br>, 2022<br><br><br><br>For the Three<br><br>Months Ended<br><br>June<br><br>3<br>0<br>, 202<br>1<br><br><br>Variance to Comparable<br>Period in<br>the Prior Year<br><br>Net Income<br>(Loss)<br>Attributable to the Company<br><br><br>$<br><br>1,218<br><br><br>$<br><br>(3,724)<br><br><br>$<br><br>4,942<br><br>132.7<br>%<br><br>Net Income (Loss) Attributable to Common<br>Stockholders<br><br><br>$<br><br>22<br><br><br>$<br><br>(3,724)<br><br><br>$<br><br>3,746<br><br>100.6<br>%<br><br>Net Income (Loss) per Diluted Share Attributable to<br>Common<br>Stockholders<br><br>(1)<br><br>$<br><br>0.<br>00<br><br><br>$<br><br>(0.63)<br><br><br>$<br><br>0.63<br><br>100.0<br>%<br><br><br><br><br><br><br><br><br><br><br><br>Core FFO<br>Attributable to Common Stockholders<br><br>(<br>2<br>)<br><br>$<br><br>8,<br>485<br><br><br>$<br><br>5,218<br><br><br>$<br><br>3,267<br><br>62.6<br>%<br><br>Core FFO per Common Share<br>–<br><br>Diluted<br><br>(<br>2<br>)<br><br>$<br><br>1.<br>41<br><br><br>$<br><br>0.<br>88<br><br><br>$<br><br>0.5<br>3<br><br>6<br>0.2<br>%<br><br><br><br><br><br><br><br><br><br><br><br>AFFO<br>Attributable to<br>Common Stockholders<br><br>(<br>2<br>)<br><br>$<br><br>8,<br>890<br><br><br>$<br><br>6,294<br><br><br>$<br><br>2,596<br><br>41.2<br>%<br><br>AFFO per Common Share<br>–<br><br>Diluted<br><br>(<br>2<br>)<br><br>$<br><br>1.48<br><br><br>$<br><br>1.0<br>7<br><br><br>$<br><br>0.<br>4<br>1<br><br>38.3<br>%<br><br><br><br><br><br><br><br><br><br><br><br>Dividends Declared and Paid, per Preferred Share<br><br>$<br><br>0.40<br><br><br>$<br><br>—<br><br><br>$<br><br>0.40<br><br>100.0%<br><br>Dividends Declared and Paid, per Common<br>Share<br><br>$<br><br>1.<br>12<br><br><br>$<br><br>1.00<br><br><br>$<br><br>0.<br>12<br><br>12<br>..0%<br><br>(1)<br><br>The denominator for<br>this<br><br>measure<br><br>in 2022<br><br>excludes<br><br>the impact of 1<br>..<br>0<br><br>million<br><br>shares related to the Company’s adoption of ASU 2020<br>-<br>06,<br>effective January 1, 2022, which requires presentation on an<br>if<br>-<br>converted basis for its 2025 Convertible Senior Notes<br>, as the impact would be<br>anti<br>-<br>dilutive.<br><br><br>(<br>2<br>)<br><br>See the “Non<br>-<br>GAAP Financial Measures” section and tables at the end of this press release for a discussion and reconciliation of Net Incom<br>e<br>(Loss)<br>Attribut<br>able to the Company to non<br>-<br>GAAP financial measures, including FFO Attributable to Common Stockholders, FFO per<br>Common Share<br>-<br><br>Diluted, Core FFO Attributable to Common Stockholders, Core FFO per Common Share<br>–<br><br>Diluted, AFFO Attributable to<br>Common Stockholde<br>rs and AFFO per Common Share<br>-<br><br>Diluted.<br><br><br><br><br>Year<br>-<br>to<br>-<br>Date Financial<br><br>Results Highlights<br><br><br>The tables below<br>provide<br><br>a summary of the Company’s operating results<br>for the six months ended June 30, 2022:<br><br><br>(in<br><br>thousands, except per share data)<br><br>For the<br>Six<br><br>Months Ended<br><br>June<br><br>3<br>0<br>, 2022<br><br><br><br>For the<br>Six<br><br>Months Ended<br><br>June<br><br>3<br>0<br>, 202<br>1<br><br><br>Variance to Comparable<br>Period in the Prior Year<br><br>Net Income Attributable to the Company<br><br><br>$<br><br>1,<br>420<br><br><br>$<br><br>4,061<br><br><br>$<br><br>(2,641)<br><br>(65.0<br>%<br>) |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>5<br>Net Income (Loss) Attributable to Common<br>Stockholders<br><br><br>$<br><br>(971)<br><br><br>$<br><br>4,061<br><br><br>$<br><br>(5,032)<br><br>(<br>1<br>23<br>..<br>9<br>%<br>)<br><br>Net Income (Loss) per Diluted Share Attributable to<br>Common Stockholders<br><br>(1)<br><br>$<br><br>(<br>0.<br>16)<br><br><br>$<br><br>0.6<br>9<br><br><br>$<br><br>(<br>0.<br>85)<br><br>(123.2<br>%)<br><br><br><br><br><br><br><br><br><br><br><br>Core FFO<br>Attributable to Common<br>Stockholders<br><br>(<br>2<br>)<br><br>$<br><br>16,712<br><br><br>$<br><br>10,068<br><br><br>$<br><br>6,644<br><br>66.0<br>%<br><br>Core FFO per Common Share<br>–<br><br>Diluted<br><br>(<br>2<br>)<br><br>$<br><br>2.81<br><br><br>$<br><br>1.71<br><br><br>$<br><br>1.<br>1<br>0<br><br>64.3<br>%<br><br><br><br><br><br><br><br><br><br><br><br>AFFO<br>Attributable to Common Stockholders<br><br>(<br>2<br>)<br><br>$<br><br>17<br>,<br>607<br><br><br>$<br><br>11,981<br><br><br>$<br><br>5,626<br><br>47.0<br>%<br><br>AFFO per Common Share<br>–<br><br>Diluted<br><br>(<br>2<br>)<br><br>$<br><br>2.9<br>6<br><br><br>$<br><br>2.03<br><br><br>$<br><br>0.9<br>3<br><br>45.8<br>%<br><br><br><br><br><br><br><br><br><br><br><br>Dividends Declared and Paid, per Preferred Share<br><br>$<br><br>0.<br>8<br>0<br><br><br>$<br><br>—<br><br><br>$<br><br>0.<br>8<br>0<br><br>100.0%<br><br>Dividends Declared and Paid, per Common Share<br><br>$<br><br>2.20<br><br><br>$<br><br>2<br>..00<br><br><br>$<br><br>0.<br>20<br><br>10<br>..0%<br><br>(1)<br><br>The denominator for<br>this<br><br>measure<br><br>in 2022<br><br>excludes<br><br>the impact of 1<br>..<br>0<br><br>million<br><br>shares related to the Company’s adoption of ASU 2020<br>-<br>06,<br>effective January 1, 2022, which requires presentation on an if<br>-<br>converted basis for its 2025 Convertible Senior Notes<br>, as the impact would be<br>anti<br>-<br>dilutive.<br><br><br>(<br>2<br>)<br><br>See the “N<br>on<br>-<br>GAAP Financial Measures” section and tables at the end of this press release for a discussion and reconciliation of Net Incom<br>e<br>Attributable to the Company to non<br>-<br>GAAP financial measures, including FFO Attributable to Common Stockholders, FFO per Common<br>Share<br>-<br><br>Diluted, Core FFO Attributable to Common Stockholders, Core FFO per Common Share<br>–<br><br>Diluted, AFFO Attributable to Common<br>Stockholders and AFFO per Common Share<br>-<br><br>Diluted.<br><br><br><br><br>Investments<br><br><br>During the three months ended June 30, 2022, the Company originated two<br>structured investment<br>s<br>to provide $49.0<br>million of funding towards two properties. The Company’s<br>second<br><br>quarter 2022 investments included the following:<br><br><br>▪<br><br>Provided<br>$30.0 million<br>of pref<br>erred equity for<br>the acquisition of Watters Creek at Montgomery Farm, a grocery<br>-<br>anchored, mixed<br>-<br>use property located in Allen, Texas. Watters Creek at Montgomery Farm is approximately<br>458,000 square feet of grocery<br>-<br>anchored retail and office, anchored by M<br>arket Street, Anthropologie, Mi<br>Cocina, DSW, The Cheesecake Factory, Brio Italian Grille, and Michaels, and includes a variety of national<br>and local retailers and restaurants. The three<br>-<br>year preferred investment for the acquisition was fully funded at<br>clos<br>ing, is interest<br>-<br>only through maturity, includes an origination fee, and bears a fixed preferred return<br>of<br>8.<br>5<br>0<br>%.<br><br>▪<br><br>Provided a<br><br>$19.0 million<br>first mortgage<br><br>for<br>the development of the retail portion of the WaterStar Orlando<br>mixed<br>-<br>use property in Kissimmee, FL<br>..<br>WaterStar Orlando is a mixed<br>-<br>use project<br>at the center of one of the<br>strongest performing retail corridors in Florida,<br>includes 320 onsite residential units, and is<br>in<br>close proximity<br>to<br><br>the<br>Margaritaville Resort Orlando<br>,<br>Island H20 Water Park<br>,<br><br>and<br>the western entrance to Walt Disney World<br>..<br>The retail portion of the development is 102<br>,000 square feet<br>and is<br>anchored by<br>Marshalls<br>,<br>Burlington<br>,<br>pOpshelf<br>, Portillo’s and Outback Steakhouse<br>..<br><br>The loan matures on August 31, 2022<br>,<br><br>is interest<br>-<br>only through<br>mat<br>urity, includes an origination fee,<br>and bears a fixed interest<br>-<br>only rate of 8.00%.<br><br><br>During the<br>six<br><br>months<br>ended June 30, 202<br>2<br>,<br><br>the Company acquired one<br>multi<br>-<br>tenant<br>retail property for total<br>income<br>property<br>acquisition volume of $39.1 million and originated<br>three<br><br>structured investments<br>to provide $<br>57<br>..7 million of<br>funding towards<br>three<br>retail<br>and<br>mixed<br>-<br>use<br><br>properties<br>..<br>These acquisitions and structured investments represent<br><br>a<br>blended<br>weighted average going<br>-<br>in<br>yield<br><br>of<br>7.9<br>%<br>..<br><br><br>Subsequent to quarter<br>-<br>end, the Company<br>acquired Madison<br>Yards, a 162,500 square foot<br>grocery<br>-<br>anchored<br>property<br>located in the<br><br>Inman Park/Reynoldstown submarket along the Memorial Drive corridor of Atlanta, Georgia for a<br>purchase price of $8<br>0.2 million.<br>Th<br>e<br>p<br>roperty is 98% occupied, anchored by Publix and AMC Theatres, includes a<br>well<br>-<br>crafted mix of retailers and restaurants, including AT&T, First Watch, and Orangetheory Fitness, and is the<br>Company’s |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>6<br>first Publix<br>-<br>anchored center.<br><br>The purchase<br><br>price represents a going<br>-<br>in cap rate below the range of the Company’s<br>guidance for initial cash yields.<br><br><br><br>Dispositions<br><br><br><br>During the<br>six<br><br>mon<br>ths ended June 30, 202<br>2<br>,<br>the<br><br>Company sold two single tenant income properties, one of which was<br>classified as a commercial loan investment due to the tenant’s repurchase option, for $24.0 million at a weighted average<br>exit cap rate of 6.0%.<br><br><br><br>Income Property<br>Portfolio<br><br><br>The Company’s income property portfolio consisted of the following<br>as of<br>June<br><br>3<br>0<br>, 2022:<br><br><br><br>Asset<br><br>Type<br><br><br><br># of Properties<br>(1)<br><br><br><br>Square Feet<br><br><br><br>Weighted Average<br>Remaining Lease Term<br><br>Single<br><br>Tenant<br><br><br><br>7<br><br><br><br><br>422<br><br><br><br>6.3<br><br>years<br><br>Multi<br>-<br>Tenant<br><br><br><br>14<br><br><br><br>2,4<br>18<br><br><br><br>6.7<br><br>years<br><br>Total / Weighted Average Lease Term<br><br><br><br>21<br><br><br><br>2,<br>840<br><br><br><br>6.6<br><br>years<br><br><br><br>Property Type<br><br><br><br># of Properties<br>(1)<br><br><br><br>Square Feet<br><br><br><br>% of<br>Cash Base<br>Rent<br><br>Retail<br><br><br><br><br>14<br><br><br><br>1,9<br>05<br><br><br><br>6<br>1<br>..<br>5<br>%<br><br>Office<br><br><br>4<br><br><br>532<br><br><br>19.<br>5<br>%<br><br>Mixed<br>-<br>Use<br><br><br>3<br><br><br>403<br><br><br>1<br>9.0<br>%<br><br>Total / Weighted Average<br>Lease Term<br><br><br><br>21<br><br><br><br>2,8<br>40<br><br><br><br>100.0%<br><br><br><br>Leased Occupancy<br><br>93.5<br>%<br><br><br><br>Ec<br>onomic Occupancy<br><br>9<br>1.3<br>%<br><br><br><br>Physical Occupancy<br><br>90.2<br>%<br><br><br><br>Square feet in thousands.<br><br>(1)<br><br>The properties include a property in Hialeah, Florida leased to a master tenant which includes three tenant repurchase option<br>s. Pursuant to<br>FASB ASC Topic 842,<br>Leases<br>, the $21.0 million investment has been recorded in the Company’s consolidated balance she<br>ets as<br>a<br>Commercial<br>Loan Investment.<br><br><br><br>Operational Highlights<br><br><br><br>The Company’s Same<br>-<br>P<br>roperty NOI<br><br>totaled $<br>7<br>..4<br><br>million during the<br>second<br>quarter of 2022, an increase<br>of<br>23.8<br>% over<br><br>the comparable prior year period<br>, as presented in the following table.<br><br><br><br><br>(<br>in thousands<br>)<br><br>For the Three<br><br>Months Ended<br><br>June<br><br>3<br>0<br>, 2022<br><br><br><br>For the Three<br><br>Months Ended<br><br>June 30<br>, 2021<br><br><br>Variance to Comparable<br>Period in the Prior Year<br><br>Single Tenant<br><br>$<br><br>2,<br>190<br><br><br>$<br><br>2,055<br><br><br>$<br><br>135<br><br>6.6<br>%<br><br>Multi<br>-<br>Tenant<br><br><br><br>5,256<br><br><br><br>3,961<br><br><br><br>1,295<br><br>32.7<br>% |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>7<br>Total<br><br>$<br><br>7,446<br><br><br>$<br><br>6,016<br><br><br>$<br><br>1,430<br><br>23.8<br>%<br><br><br>During the<br>second<br><br>quarter of 2022, the Company signed leases totaling<br>41<br>,<br>163<br><br>square feet. A summary of the<br>Company’s leasing activity is as follows:<br><br><br><br>Retail<br><br><br><br>Square<br>Feet<br><br><br>Weighted Average<br>Lease Term<br><br><br>Cash Rent Per<br>Square Foot<br><br><br>Tenant<br>Improvements<br><br><br>Leasing<br>Commissions<br><br>New Leases<br><br><br>3<br>1.0<br><br><br>12.2<br><br>years<br><br><br>$<br>32.66<br><br><br>$<br><br>2,721<br><br><br>$<br><br>298<br><br>Renewals & Extensions<br><br><br><br>10.2<br><br><br>3.6<br><br>years<br><br><br>$<br>29.28<br><br><br>$<br><br>—<br><br><br>$<br><br>28<br><br><br>Total / Weighted Average<br><br><br><br>41.<br>2<br><br><br>10.3<br><br>years<br><br><br>$31.<br>82<br><br><br>$<br><br>2,721<br><br><br>$<br><br>326<br><br>In thousands except for per square foot and lease term data.<br><br><br><br>Subsurface<br>Interests<br><br><br>During the three months ended<br>June<br><br>3<br>0<br>, 2022, the Company sold approximately<br>8,330<br><br>acres of subsurface oil, gas, and<br>mineral rights for $0.<br>5<br><br>million, resulting in aggregate gains of $0.<br>5<br><br>million.<br><br><br>During the six months ended June 30, 202<br>2<br>,<br>the Company sold<br>approximately<br>13<br>,<br>08<br>0<br><br>acres of subsurface oil, gas and<br>mineral rights for $<br>0.<br>9<br><br>million, resulting in a gain on the sale of $<br>0.8<br><br>million.<br>As of<br>June 30<br>, 202<br>2<br>, the Company owns<br>full or fractional subsurface oil, gas, and mineral interests underlying approximately<br>356<br>,000 “surface<br>” acres of land<br>owned by others<br>in<br>19<br><br>counties<br><br>in Florida.<br><br><br><br>Capital Markets and<br>Balance Sheet<br><br><br>During the quarter ended<br>June<br><br>3<br>0<br>, 2022, the Company completed the following notable capital markets activity:<br><br><br>▪<br><br>I<br>ssued<br>88,065<br><br>common shares under its ATM offering program at a weighted average gross price of $<br>66.03<br><br>per<br>share, for total net proceeds of $<br>5.7<br><br>million.<br><br>▪<br><br>R<br>epurchased<br>20,010<br><br>shares for approximately $<br>1.1<br><br>million<br>at a weighted average gross price<br>of $<br>57.37<br><br>per<br>share.<br><br>▪<br><br>C<br>ompleted a three<br>-<br>for<br>-<br>one stock split and began trading at the post<br>-<br>split price on July 1, 2022. The stock split<br>was effected in the form of a stock dividend of two additional shares of common stock for each outstanding<br>share of common stock held as of the<br>record date for the stock dividend.<br><br><br>The following table provides a summary of the Company’s long<br>-<br>term debt, at face value, as of<br>June 30, 202<br>2<br>:<br><br><br>Component of Long<br>-<br>Term Debt<br><br><br><br>Principal<br><br><br><br>Interest Rate<br><br><br><br>Maturity Date<br><br>Revolving Credit Facility<br><br><br><br>$<br>111<br>..0 million<br><br><br><br>30<br>-<br>day LIBOR + [1.35%<br>–<br><br>1.95%]<br><br><br><br>May 2023<br><br>2025 Convertible Senior Notes<br><br><br><br>$51.0 million<br><br><br><br>3.875%<br><br><br><br>April 2025<br><br>2026 Term Loan<br>(1)<br><br><br><br>$65.0 million<br><br><br><br>30<br>-<br>day LIBOR +<br>[1.35%<br>–<br><br>1.95%]<br><br><br><br>March 2026<br><br>2027 Term Loan<br>(2)<br><br><br><br>$100.0 million<br><br><br><br>30<br>-<br>day LIBOR +<br>[1.35%<br>–<br><br>1.95%]<br><br><br><br>January 2027<br><br>Mortgage Note<br>(3)<br><br><br><br>$17.8 million<br><br><br><br>4.06%<br><br><br><br>August 2026<br><br>Total Debt / Weighted Average Interest Rate<br><br><br><br>$<br>344.8<br><br>million<br><br><br><br>2.<br>63<br>%<br><br><br><br><br><br>(1)<br><br>The Company utilized interest rate swaps on the $65.0 million 2026 Term Loan balance, including (i) its redesignation of the<br>existing $50.0<br>million interest rate swap, entered into as of August 31, 2020, and (ii) a $15.0 million interest rate swap effectiv<br>e August 31, 2021, to fix<br>LIBOR and achieve a weighted average fixed interest rate of 0.35% plus the applicable spread. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>8<br>(2)<br><br>The Company utilized interest rate swaps on the $100.0 million 2027 Term Loan balance, including (i) its redesignation of the<br><br>existing $100.0<br>million interest rate swap, entered into as of March 31, 2020, and (ii) an additional interest rate swap, effectiv<br>e March 29, 2024, to extend the<br>fixed interest rate through maturity on January 31, 2027, to fix LIBOR and achieve a fixed interest rate of 0.73% plus the ap<br>plicable spread.<br><br>(3)<br><br>Mortgage note assumed in connection with the acquisition of Price Plaza<br>Shopp<br>ing Center<br>located in Katy, Texas.<br><br><br>As of<br>June<br><br>3<br>0<br>, 2022, the Company’s net debt to Pro Forma EBITDA was<br>6.6<br><br>times, and as defined in the Company’s<br>credit agreement, the Company’s fixed charge coverage ratio was<br>3.4<br><br>times. As of<br>June<br><br>3<br>0<br>, 2022, the Company’s<br><br>net<br>debt to total enterprise value was<br>41.0<br>%. The Company calculates total enterprise value as the sum of net debt<br>, par value<br>of its 6.375% Series A preferred equity,<br><br>and the market value of the Company's outstanding common shares<br>..<br><br><br><br>Dividend<br>s<br><br><br>On<br>May<br>24<br>, 2022, the Company announced a cash dividend on its common stock and Series A Preferred stock for the<br>second<br><br>quarter of 2022 of $1.<br>12<br><br>per share and $0.40 per share, respectively, payable on<br>June<br><br>3<br>0<br>, 2022 to stockholders<br>of record as of the close of busi<br>ness on<br>June 9<br>, 2022. The<br>second<br>quarter 2022 common stock cash dividend represents<br>a<br><br>12<br>..0% increase over the comparable prior year period quarterly dividend and a payout ratio of 7<br>9<br>..<br>4<br>% and<br>75.7<br>% of<br>the Company’s<br>second<br><br>quarter 2022 Core FFO per diluted sh<br>are and AFFO per diluted share, respectively.<br><br><br><br>202<br>2<br><br>Outlook<br><br><br>The Company has increased its outlook for 2022 to take into account<br><br>the Company’s year<br>-<br>to<br>-<br>date performance and revised<br>expectations regarding the Company’s investment activities, forecasted capital markets transactions, and other significant<br>assumptions.<br><br>The revised per share estimates<br>take into account<br><br>the Company’s recently<br>completed<br><br>three<br>-<br>for<br>-<br>one stock<br>split<br><br><br>The Company’s increased outlook for 2022 is as follows<br>:<br><br><br><br><br>2022 Revised Outlook Range<br><br><br>Change from Prior Outlook<br><br><br>Low<br><br><br>High<br><br><br>Low<br><br><br>High<br><br>Acquisition of Income Producing Assets<br><br><br>$<br>250<br>..0<br>million<br><br>to<br><br>$2<br>7<br>5.0 million<br><br><br>$50 million<br><br>to<br><br>$25 million<br><br>Target Investment Initial Cash Yield<br><br>7.<br>00<br>%<br><br>to<br><br>7.<br>25<br>%<br><br><br>50 bps<br><br>to<br><br>25 bps<br><br>Disposition of Assets<br><br>$<br>50<br>..0 million<br><br>to<br><br>$<br>80<br>..0 million<br><br><br>$10 million<br><br>to<br><br>$10 million<br><br>Target Disposition Cash Yield<br><br>6.<br>25<br>%<br><br>to<br><br>6.<br>75<br>%<br><br><br>100<br><br>bps<br><br>to<br><br>25<br><br>bps<br><br><br><br><br><br><br><br><br><br>Core<br>FFO Per Diluted Share<br><br>$<br>1.58<br><br>to<br><br>$<br>1.64<br><br><br>$0.06<br><br>to<br><br>$0.04<br><br>AFFO Per Diluted Share<br><br>$<br>1.70<br><br>to<br><br>$<br>1.76<br><br><br>$0.05<br><br>to<br><br>$0.03<br><br><br><br><br><br><br><br><br><br>Weighted Average Diluted<br><br>Shares Outstanding<br><br>18.<br>3<br><br>million<br><br>to<br><br>18<br>..<br>5<br><br>million<br><br><br>0 million<br><br>to<br><br>0.3 million<br><br><br><br>2nd<br><br>Quarter Earnings Conference Call & Webcast<br><br><br>The Company will host a conference call to present its operating results for the quarter ended June 30, 2022 on Friday,<br>July 2<br>9<br>, 2022, at 9:00 AM ET.<br><br><br>A live webcast of the call will be available on the Investor Relations page of the Company’s website at<br>www.ctoreit.com<br><br>or at the link provided in the event details below. To access the call by phone, please go to the<br><br>link provided in the event<br>details below and you will be provided with dial<br>-<br>in details. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>9<br><br>Webcast:<br>https://edge.media<br>-<br>server.com/mmc/p/uh9ig8iu<br><br><br><br><br>Dial<br>-<br>In:<br>https://register.vevent.com/register/BI03c8d5540d254fb798fffd5daa427848<br><br><br><br>We encourage participants to dial into the conference call at least fifteen minutes ahead of the scheduled start time. A<br>replay of<br>the earnings call will be archived and available online through the Investor Relations section of the Company’s<br>website at<br>www.ctoreit.com<br>..<br><br><br><br><br>About<br>CTO Realty Growth, Inc.<br><br><br>CTO Realty Growth, Inc. is a<br>publicly traded real estate investment trust that owns and operates a portfolio of high<br>-<br>quality, retail<br>-<br>based properties located primarily in higher growth markets in the United States. CTO also externally<br>manages and owns a meaningful interest in Alpine I<br>ncome Property Trust, Inc. (NYSE: PINE), a publicly traded net<br>lease REIT.<br><br><br>We encourage you to review our most recent investor presentation and supplemental financial information, which is<br>available on our website at<br>www.ctoreit.com<br>..<br><br><br><br><br>Safe Harbor<br><br><br>Certain statements contained in this press release (other than statements of historical fact) are forward<br>-<br>looking<br>statements within the meaning of Section 27A of the Securities Act of 1933, as amended<br>,<br><br>and Section 21E of t<br>he<br>Securities Exchange Act of 1934, as amended. Forward<br>-<br>looking statements can typically be identified by words such<br>as “believe,” “estimate,” “expect,” “intend,” “anticipate,” “will,” “could,” “may,” “should,” “plan,” “potential,”<br>“predict,” “forecast,” “<br>project,” and similar expressions, as well as variations or negatives of these words.<br><br><br>Although forward<br>-<br>looking statements are made based upon management’s present expectations and reasonable beliefs<br>concerning future developments and their potential effec<br>t upon the Company, a number of factors could cause the<br>Company’s actual results to differ materially from those set forth in the forward<br>-<br>looking statements. Such factors may<br>include, but are not limited to: the Company’s ability to remain qualified as a R<br>EIT; the Company’s exposure to U.S.<br>federal and state income tax law changes, including changes to the REIT requirements; general adverse economic and<br>real estate conditions; macroeconomic and geopolitical factors, including but not limited to inflationary<br><br>pressures,<br>interest rate volatility, global supply chain disruptions, and ongoing geopolitical war; the ultimate geographic spread,<br>severity and duration of pandemics such as the COVID<br>-<br>19 Pandemic and its variants, actions that may be taken by<br>governmenta<br>l authorities to contain or address the impact of such pandemics, and the potential negative impacts of<br>such pandemics on the global economy and the Company’s financial condition and results of operations; the inability<br>of major tenants to continue paying<br>their rent or obligations due to bankruptcy, insolvency or a general downturn in<br>their business; the loss or failure, or decline in the business or assets of PINE; the completion of 1031 exchange<br>transactions; the availability of investment properties that<br><br>meet the Company’s investment goals and criteria; the<br>uncertainties associated with obtaining required governmental permits and satisfying other closing conditions for<br>planned acquisitions and sales; and the uncertainties and risk factors discussed in the<br><br>Company’s Annual Report on<br>Form 10<br>-<br>K for the fiscal year ended December 31, 2021 and other risks and uncertainties discussed from time to time<br>in the Company’s filings with the U.S. Securities and Exchange Commission.<br><br><br>There can be no assurance that<br>future developments will be in accordance with management’s expectations or that the<br>effect of future developments on the Company will be those anticipated by management. Readers are cautioned not to<br>place undue reliance on these forward<br>-<br>looking statements<br>, which speak only as of the date of this press release. The<br>Company undertakes no obligation to update the information contained in this press release to reflect subsequently<br>occurring events or circumstances. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>10<br>Non<br>-<br>GAAP Financial Measures<br><br><br>Our reported results are presented in accordance with accounting principles generally accepted in the United States of<br>America (“GAAP”). We also disclose Funds From Operations (“FFO”), Core Funds From Operations (“Core FFO”),<br>Adjusted Funds From Operations<br><br>(“AFFO”), Pro Forma Earnings Before Interest, Taxes, Depreciation and<br>Amortization (“Pro Forma EBITDA”), and Same<br>-<br>Property Net Operating Income (“Same<br>-<br>Property NOI”), each of<br>which are non<br>-<br>GAAP financial measures. We believe these non<br>-<br>GAAP financial measu<br>res are useful to investors<br>because they are widely accepted industry measures used by analysts and investors to compare the operating<br>performance of REITs.<br><br><br>FFO, Core FFO, AFFO, Pro Forma EBITDA, and Same<br>-<br>Property NOI do not represent cash generated from<br>operating<br>activities and are not necessarily indicative of cash available to fund cash requirements; accordingly, they should not<br>be considered alternatives to net income as a performance measure or cash flows from operating activities as reported<br>on our s<br>tatement of cash flows as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP<br>financial measures.<br><br><br>We compute FFO in accordance with the definition adopted by the Board of Governors of the National Association of<br>Real Esta<br>te Investment Trusts, or NAREIT. NAREIT defines FFO as GAAP net income or loss adjusted to exclude<br>extraordinary items (as defined by GAAP), net gain or loss from sales of depreciable real estate assets, impairment<br>write<br>-<br>downs associated with depreciable r<br>eal estate assets and real estate related depreciation and amortization,<br>including the pro rata share of such adjustments of unconsolidated subsidiaries. The Company also excludes the gains<br>or losses from sales of assets incidental to the primary business<br>of the REIT which specifically include the sales of<br>mitigation credits, impact fee credits, subsurface sales, and land sales, in addition to the mark<br>-<br>to<br>-<br>market of the<br>Company’s investment securities and interest related to the 2025 Convertible Senior Notes<br>, if the effect is dilutive. To<br>derive Core FFO, we modify the NAREIT computation of FFO to include other adjustments to GAAP net income<br>related to gains and losses recognized on the extinguishment of debt, amortization of above<br>-<br><br>and below<br>-<br>market lease<br>rel<br>ated intangibles, and other unforecastable market<br>-<br><br>or transaction<br>-<br>driven non<br>-<br>cash items. To derive AFFO, we further<br>modify the NAREIT computation of FFO and Core FFO to include other adjustments to GAAP net income related to<br>non<br>-<br>cash revenues and expenses<br>such as straight<br>-<br>line rental revenue, non<br>-<br>cash compensation, and other non<br>-<br>cash<br>amortization, as well as adding back the interest related to the 2025 Convertible Senior Notes, if the effect is dilutive.<br>Such items may cause short<br>-<br>term fluctuations in net i<br>ncome but have no impact on operating cash flows or long<br>-<br>term<br>operating performance. We use AFFO as one measure of our performance when we formulate corporate goals.<br><br><br>To derive Pro Forma EBITDA, GAAP net income or loss<br><br>attributable to the Company<br><br>is adjust<br>ed to exclude<br>extraordinary items (as defined by GAAP), net gain or loss from sales of depreciable real estate assets, impairment<br>write<br>-<br>downs associated with depreciable real estate assets and real estate related depreciation and amortization,<br>including th<br>e pro rata share of such adjustments of unconsolidated subsidiaries, non<br>-<br>cash revenues and expenses such<br>as straight<br>-<br>line rental revenue, amortization of deferred financing costs, above<br>-<br><br>and below<br>-<br>market lease related<br>intangibles, non<br>-<br>cash compensation, an<br>d other non<br>-<br>cash income or expense. Cash interest expense is also excluded from<br>Pro Forma EBITDA, and GAAP net income or loss is adjusted for the annualized impact of acquisitions, dispositions<br>and other similar activities.<br><br><br>To derive Same<br>-<br>Property NOI, GA<br>AP net income or loss attributable to the Company is adjusted to exclude<br>extraordinary items (as defined by GAAP), gain or loss on disposition of assets, gain or loss on extinguishment of debt,<br>impairment charges, and depreciation and amortization, includi<br>ng the pro rata share of such adjustments of<br>unconsolidated subsidiaries, if any, non<br>-<br>cash revenues and expenses such as above<br>-<br><br>and below<br>-<br>market lease related<br>intangibles, straight<br>-<br>line rental revenue, and other non<br>-<br>cash income or expense. Interest expense<br>, general and<br>administrative expenses, investment and other income or loss, income tax benefit or expense, real estate operations<br>revenues and direct cost of revenues, management fee income, and interest income from commercial loan<br>s<br><br>and<br>investments are als<br>o excluded from Same<br>-<br>Property NOI. GAAP net income or loss is further adjusted to remove the<br>impact of properties that were not owned for the full current and prior year reporting periods presented. Cash rental<br>income received under the leases pertaining t<br>o the Company’s assets that are presented as commercial loan<br>s<br><br>and<br>investments in accordance with GAAP is also used in lieu of the interest income equivalent. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>11<br><br>FFO is used by management, investors and analysts to facilitate meaningful comparisons of operati<br>ng performance<br>between periods and among our peers primarily because it excludes the effect of real estate depreciation and<br>amortization and net gains or losses on sales, which are based on historical costs and implicitly assume that the value<br>of real esta<br>te diminishes predictably over time, rather than fluctuating based on existing market conditions. We believe<br>that Core FFO and AFFO are additional useful supplemental measures for investors to consider because they will help<br>them to better assess our opera<br>ting performance without the distortions created by other non<br>-<br>cash revenues or expenses.<br>We also believe that Pro Forma EBITDA is an additional useful supplemental measure for investors to consider as it<br>allows for a better assessment of our operating perf<br>ormance without the distortions created by other non<br>-<br>cash revenues,<br>expenses or certain effects of the Company’s capital structure on our operating performance. We use Same<br>-<br>Property<br>NOI to compare the operating performance of our assets between periods. It<br><br>is an accepted and important measurement<br>used by management, investors and analysts because it includes all property<br>-<br>level revenues from the Company’s<br>properties, less operating and maintenance expenses, real estate taxes and other property<br>-<br>specific expen<br>ses (“Net<br>Operating Income” or “NOI”) of properties that have been owned and stabilized for the entire current and prior year<br>reporting periods. Same<br>-<br>Property NOI attempts to eliminate differences due to the acquisition or disposition of<br>properties during<br>the particular period presented, and therefore provides a more comparable and consistent performance<br>measure for the comparison of the Company's properties. FFO, Core FFO, AFFO, Pro Forma EBITDA, and Same<br>-<br>Property NOI may not be comparable to similarly tit<br>led measures employed by other companies. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>12<br>Consolidated Balance Sheet<br>CTO Realty Growth, Inc.<br><br>Consolidated<br>Balance Sheet<br>s<br><br>(<br>In thousands, except<br>share and per<br>share data<br>)<br><br><br><br><br><br>As of<br><br><br><br><br>(Unaudited)<br><br>June<br><br>30, 2022<br><br><br><br>December<br><br>31,<br><br>2021<br><br>ASSETS<br><br><br><br><br><br><br><br>Real Estate:<br><br><br><br><br><br><br><br>Land, at<br>Cost<br><br><br>$<br><br><br>205,245<br><br><br>$<br><br><br>189,589<br><br>Building and Improvements, at Cost<br><br><br><br><br>344,205<br><br><br><br><br>325,418<br><br>Other Furnishings and Equipment, at Cost<br><br><br><br><br>741<br><br><br><br><br>707<br><br>Construction in Process, at Cost<br><br><br><br><br>10,419<br><br><br><br><br>3,150<br><br>Total Real Estate, at Cost<br><br><br><br><br>560,610<br><br><br><br><br>518,864<br><br>Less, Accumulated Depreciation<br><br><br><br><br>(31,735)<br><br><br><br><br>(24,169)<br><br>Real Estate<br>—<br>Net<br><br><br><br><br>528,875<br><br><br><br><br>494,695<br><br>Land and Development Costs<br><br><br><br><br>686<br><br><br><br><br>692<br><br>Intangible Lease Assets<br>—<br>Net<br><br><br><br><br>78,328<br><br><br><br><br>79,492<br><br>Assets Held for Sale<br><br><br><br><br>—<br><br><br><br><br>6,720<br><br>Investment in Alpine<br>Income Property Trust, Inc.<br><br><br><br><br>38,483<br><br><br><br><br>41,037<br><br>Mitigation Credits<br><br><br><br><br>3,436<br><br><br><br><br>3,702<br><br>Mitigation Credit Rights<br><br><br><br><br>21,018<br><br><br><br><br>21,018<br><br>Commercial Loans and Investments<br><br><br><br><br>68,783<br><br><br><br><br>39,095<br><br>Cash and Cash Equivalents<br><br><br><br><br>7,137<br><br><br><br><br>8,615<br><br>Restricted Cash<br><br><br><br><br>27,189<br><br><br><br><br>22,734<br><br>Refundable Income Taxes<br><br><br><br><br>286<br><br><br><br><br>442<br><br>Deferred Income Taxes<br>—<br>Net<br><br><br><br><br>105<br><br><br><br><br>—<br><br>Other Assets<br><br><br><br><br>28,029<br><br><br><br><br>14,897<br><br>Total Assets<br><br><br>$<br><br><br>802,355<br><br><br>$<br><br><br>733,139<br><br>LIABILITIES AND STOCKHOLDERS’ EQUITY<br><br><br><br><br><br><br><br>Liabilities:<br><br><br><br><br><br><br><br>Accounts Payable<br><br><br>$<br><br><br>1,325<br><br><br>$<br><br><br>676<br><br>Accrued and Other Liabilities<br><br><br><br><br>15,705<br><br><br><br><br>13,121<br><br>Deferred Revenue<br><br><br><br><br>5,358<br><br><br><br><br>4,505<br><br>Intangible Lease Liabilities<br>—<br>Net<br><br><br><br><br>5,277<br><br><br><br><br>5,601<br><br>Deferred Income Taxes<br>—<br>Net<br><br><br><br><br>—<br><br><br><br><br>483<br><br>Long<br>-<br>Term Debt<br><br><br><br><br>343,196<br><br><br><br><br>278,273<br><br>Total<br>Liabilities<br><br><br><br><br>370,861<br><br><br><br><br>302,659<br><br>Commitments and Contingencies<br><br><br><br><br><br><br><br>Stockholders’ Equity:<br><br><br><br><br><br><br><br>Preferred Stock<br>–<br><br>100,000,000 shares authorized; $0.01 par value, 6.375% Series A<br>Cumulative Redeemable Preferred Stock, $25.00 Per Share Liquidation Preference,<br>3,000,000 shares issued and outstanding at June<br><br>30, 2022 and December<br><br>31, 2021<br><br><br><br><br>30<br><br><br><br><br>30<br><br>Common Stock<br>–<br><br>500,000,000 shares authorized; $0.01 par value, 6,082,626 shares<br>issued and outstanding at June<br><br>30, 2022 and 5,916,226 shares issued and outstanding at<br>December<br><br>31, 2021<br><br><br><br><br>61<br><br><br><br><br>60<br><br>Additional Paid<br>-<br>In Capital<br><br><br><br><br>86,347<br><br><br><br><br>85,414<br><br>Retained Earnings<br><br><br><br><br>332,916<br><br><br><br><br>343,459<br><br>Accumulated Other Comprehensive Income<br><br><br><br><br>12,140<br><br><br><br><br>1,517<br><br>Total Stockholders’ Equity<br><br><br><br><br>431,494<br><br><br><br><br>430,480<br><br>Total Liabilities and Stockholders’ Equity<br><br><br>$<br><br><br>802,355<br><br><br>$<br><br><br>733,139 |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>13<br>Consolidated P&L<br>CTO Realty Growth, Inc.<br><br>Consolidated Statement<br>s<br><br>of Operations<br><br><br>(Unaudited<br>)<br><br>(I<br>n thousands, except share, per share and dividend data)<br><br><br><br><br>Three<br><br>Months<br><br>Ended<br><br><br>Six Months Ended<br><br><br><br>June<br><br>30,<br><br><br>June<br><br>30,<br><br><br>June<br><br>30,<br><br><br>June<br><br>30,<br><br><br><br><br>2022<br><br><br><br>2021<br><br><br><br>2022<br><br><br><br>2021<br><br>Revenues<br><br><br><br><br><br><br><br><br><br><br><br><br><br>Income Properties<br><br><br>$<br><br><br>16,367<br><br><br>$<br><br><br>11,574<br><br><br>$<br><br><br>31,535<br><br><br>$<br><br><br>23,023<br><br>Management Fee Income<br><br><br><br><br>948<br><br><br><br><br>752<br><br><br><br><br>1,884<br><br><br><br><br>1,421<br><br>Interest Income From<br><br>Commercial Loans and Investments<br><br><br><br><br>1,290<br><br><br><br><br>709<br><br><br><br><br>2,008<br><br><br><br><br>1,410<br><br>Real Estate Operations<br><br><br><br><br>858<br><br><br><br><br>1,248<br><br><br><br><br>1,246<br><br><br><br><br>3,141<br><br>Total Revenues<br><br><br><br><br>19,463<br><br><br><br><br>14,283<br><br><br><br><br>36,673<br><br><br><br><br>28,995<br><br>Direct Cost of Revenues<br><br><br><br><br><br><br><br><br><br><br><br><br><br>Income Properties<br><br><br><br><br>(4,812)<br><br><br><br><br>(2,787)<br><br><br><br><br>(8,828)<br><br><br><br><br>(5,704)<br><br>Real Estate Operations<br><br><br><br><br>(228)<br><br><br><br><br>(533)<br><br><br><br><br>(279)<br><br><br><br><br>(615)<br><br>Total Direct Cost of Revenues<br><br><br><br><br>(5,040)<br><br><br><br><br>(3,320)<br><br><br><br><br>(9,107)<br><br><br><br><br>(6,319)<br><br>General and Administrative Expenses<br><br><br><br><br>(2,676)<br><br><br><br><br>(2,665)<br><br><br><br><br>(5,719)<br><br><br><br><br>(5,797)<br><br>Impairment Charges<br><br><br><br><br>—<br><br><br><br><br>(16,527)<br><br><br><br><br>—<br><br><br><br><br>(16,527)<br><br>Depreciation and Amortization<br><br><br><br><br>(6,727)<br><br><br><br><br>(5,031)<br><br><br><br><br>(13,096)<br><br><br><br><br>(9,861)<br><br>Total Operating Expenses<br><br><br><br><br>(14,443)<br><br><br><br><br>(27,543)<br><br><br><br><br>(27,922)<br><br><br><br><br>(38,504)<br><br>Gain (Loss) on Disposition of Assets<br><br><br><br><br>—<br><br><br><br><br>4,732<br><br><br><br><br>(245)<br><br><br><br><br>5,440<br><br>Gain (Loss) on Extinguishment of Debt<br><br><br><br><br>—<br><br><br><br><br>(641)<br><br><br><br><br>—<br><br><br><br><br>(641)<br><br>Other Gains and Income (Loss)<br><br><br><br><br>—<br><br><br><br><br>4,091<br><br><br><br><br>(245)<br><br><br><br><br>4,799<br><br>Total Operating Income (Loss)<br><br><br><br><br>5,020<br><br><br><br><br>(9,169)<br><br><br><br><br>8,506<br><br><br><br><br>(4,710)<br><br>Investment and Other Income (Loss)<br><br><br><br><br>(1,311)<br><br><br><br><br>3,903<br><br><br><br><br>(3,205)<br><br><br><br><br>9,235<br><br>Interest Expense<br><br><br><br><br>(2,277)<br><br><br><br><br>(2,421)<br><br><br><br><br>(4,179)<br><br><br><br><br>(4,865)<br><br>Income (Loss) Before Income Tax Benefit<br><br>(Expense)<br><br><br><br><br>1,432<br><br><br><br><br>(7,687)<br><br><br><br><br>1,122<br><br><br><br><br>(340)<br><br>Income Tax Benefit (Expense)<br><br><br><br><br>(214)<br><br><br><br><br>3,963<br><br><br><br><br>298<br><br><br><br><br>4,401<br><br>Net Income (Loss) Attributable to the Company<br><br><br><br><br>1,218<br><br><br><br><br>(3,724)<br><br><br><br><br>1,420<br><br><br><br><br>4,061<br><br>Distributions to Preferred Stockholders<br><br><br><br><br>(1,196)<br><br><br><br><br>—<br><br><br><br><br>(2,391)<br><br><br><br><br>—<br><br>Net Income (Loss) Attributable to Common Stockholders<br><br><br>$<br><br><br>22<br><br><br>$<br><br><br>(3,724)<br><br><br>$<br><br><br>(971)<br><br><br>$<br><br><br>4,061<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>Per Share Information:<br><br><br><br><br><br><br><br><br><br><br><br><br><br>Basic and Diluted Net Income (Loss) Attributable to Common<br>Stockholders<br><br><br>$<br><br><br>0.00<br><br><br>$<br><br><br>(0.63)<br><br><br>$<br><br><br>(0.16)<br><br><br>$<br><br><br>0.69<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>Weighted Average Number of Common Shares<br><br><br><br><br><br><br><br><br><br><br><br><br><br>Basic and Diluted<br><br><br><br><br>6,004,178<br><br><br><br><br>5,898,280<br><br><br><br><br>5,956,798<br><br><br><br><br>5,888,735<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>Dividends Declared and Paid<br>–<br><br>Preferred<br>Stock<br><br><br>$<br><br><br>0.40<br><br><br>$<br><br>—<br><br><br>$<br><br><br>0.80<br><br><br>$<br><br>—<br><br>Dividends Declared and Paid<br>–<br><br>Common Stock<br><br><br>$<br><br><br>1.12<br><br><br>$<br><br><br>1.00<br><br><br>$<br><br><br>2.20<br><br><br>$<br><br><br>2.00 |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>14<br>Non<br>-<br>GAAP Financial Measures<br>CTO Realty Growth, Inc.<br><br>Non<br>-<br>GAAP Financial Measures<br><br>Same<br>-<br>Property NOI Reconciliation<br><br>(Unaudited)<br><br>(In thousands)<br><br><br><br><br><br>Three<br><br>Months<br><br>Ended<br><br><br><br>June<br><br>3<br>0<br>,<br><br>2022<br><br><br><br>June<br><br>3<br>0<br>,<br><br>2021<br><br>Net Income<br>(Loss)<br>Attributable to the Company<br><br>$<br><br>1,218<br><br><br><br>$<br><br>(3,724)<br><br><br>Gain on Disposition of Assets<br><br><br>—<br><br><br><br>(<br>4,732<br>)<br><br>Loss on Extinguishment of Debt<br><br><br>—<br><br><br><br>641<br><br>Impairment Charges<br><br><br>—<br><br><br><br>16,527<br><br>Depreciation and Amortization<br><br><br>6,727<br><br><br><br>5,031<br><br>Amortization of Intangibles to Lease Income<br><br><br>(497)<br><br><br><br>338<br><br>Straight<br>-<br>Line Rent Adjustment<br><br><br>507<br><br><br><br>490<br><br>COVID<br>-<br>19 Rent Repayments<br><br><br>(26)<br><br><br><br>(434)<br><br>Other Income Property Related Non<br>-<br>Cash Amortization<br><br><br>38<br><br><br><br>38<br><br>Interest Expense<br><br><br>2,277<br><br><br><br>2,421<br><br>General and Administrative Expenses<br><br><br>2,676<br><br><br><br>2,665<br><br>Investment and Other<br>Loss (<br>Income)<br><br><br>1,311<br><br><br><br>(3,903)<br><br>Income Tax<br>Expense (<br>Benefit<br>)<br><br><br>214<br><br><br><br>(3,963)<br><br>Real Estate Operations Revenues<br><br><br>(858)<br><br><br><br>(1,248)<br><br>Real Estate<br>Operations Direct Cost of Revenues<br><br><br>228<br><br><br><br>533<br><br>Management Fee Income<br><br><br>(948)<br><br><br><br>(752)<br><br>Interest Income from Commercial Loan<br>s<br><br>and Investments<br><br><br>(1,290)<br><br><br><br>(709)<br><br>Less: Impact of Properties Not Owned<br>for<br>the Full Reporting Period<br><br><br>(4,494)<br><br><br><br>(3,557)<br><br>Cash Rental Income Received from Properties Presented as<br><br>Commercial Loan<br>s<br><br>and Investments<br><br><br>363<br><br><br><br>354<br><br>Same<br>-<br>Property NOI<br><br>$<br><br>7,446<br><br><br><br>$<br><br>6,016 |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>15<br>Non<br>-<br>GAAP Financial Measures<br>CTO Realty Growth, Inc.<br><br>Non<br>-<br>GAAP Financial Measures<br><br>(<br>Unaudited<br>)<br><br>(I<br>n thousands, except per share data<br>)<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>Three Months Ended<br><br><br>Six Months Ended<br><br><br><br>June<br><br>30, 2022<br><br><br>June<br><br>30, 2021<br><br><br>June<br><br>30, 2022<br><br><br>June<br><br>30, 2021<br><br>Net Income<br>(Loss)<br>Attributable to the Company<br><br><br>$<br><br><br>1,218<br><br><br>$<br><br><br>(3,724)<br><br><br>$<br><br><br>1,420<br><br><br>$<br><br><br>4,061<br><br>Add Back: Effect of Dilutive Interest Related to 2025 Notes<br>(1)<br><br><br><br><br>—<br><br><br><br><br>—<br><br><br><br><br>—<br><br><br><br><br>—<br><br>Net Income<br>(Loss)<br>Attributable to the Company, If<br>-<br>Converted<br><br><br>$<br><br><br>1,218<br><br><br>$<br><br><br>(3,724)<br><br><br><br><br>1,420<br><br><br><br><br>4,061<br><br>Depreciation and Amortization<br><br>of Real Estate<br><br><br><br><br>6,707<br><br><br><br><br>5,031<br><br><br><br><br>13,076<br><br><br><br><br>9,861<br><br>(Gains) Losses on<br>Disposition of Assets<br><br><br><br><br>—<br><br><br><br><br>(4,732)<br><br><br><br><br>245<br><br><br><br><br>(5,440)<br><br>Gains on Disposition of Other Assets<br><br><br><br><br>(632)<br><br><br><br><br>(748)<br><br><br><br><br>(964)<br><br><br><br><br>(2,575)<br><br>Impairment Charges, Net<br><br><br><br><br>—<br><br><br><br><br>12,474<br><br><br><br><br>—<br><br><br><br><br>12,474<br><br>Unrealized Loss (Gain) on Investment Securities<br><br><br><br><br>1,891<br><br><br><br><br>(3,386)<br><br><br><br><br>4,348<br><br><br><br><br>(8,220)<br><br>Funds from Operations<br><br><br>$<br><br><br>9,184<br><br><br>$<br><br><br>4,915<br><br><br>$<br><br><br>18,125<br><br><br>$<br><br><br>10,161<br><br>Distributions to Preferred Stockholders<br><br><br><br><br>(1,196)<br><br><br><br><br>—<br><br><br><br><br>(2,391)<br><br><br><br><br>—<br><br>Funds From Operations Attributable to Common Stockholders<br><br><br>$<br><br><br>7,988<br><br><br>$<br><br><br>4,915<br><br><br>$<br><br><br>15,734<br><br><br>$<br><br><br>10,161<br><br>Loss on Extinguishment of Debt<br><br><br><br><br>—<br><br><br><br><br>641<br><br><br><br><br>—<br><br><br><br><br>641<br><br>Amortization of Intangibles to Lease Income<br><br><br><br><br>497<br><br><br><br><br>(338)<br><br><br><br><br>978<br><br><br><br><br>(734)<br><br>Less: Effect of Dilutive Interest Related to 2025 Notes<br><br>(1)<br><br><br><br><br>—<br><br><br><br><br>—<br><br><br><br><br>—<br><br><br><br><br>—<br><br>Core Funds From Operations Attributable to Common<br>Stockholders<br><br><br>$<br><br><br>8,485<br><br><br>$<br><br><br>5,218<br><br><br>$<br><br><br>16,712<br><br><br>$<br><br><br>10,068<br><br>Adjustments:<br><br><br><br><br><br><br><br><br><br><br><br><br><br>Straight<br>-<br>Line Rent Adjustment<br><br><br><br><br>(507)<br><br><br><br><br>(490)<br><br><br><br><br>(1,045)<br><br><br><br><br>(1,175)<br><br>COVID<br>-<br>19 Rent Repayments<br><br><br><br><br>26<br><br><br><br><br>434<br><br><br><br><br>53<br><br><br><br><br>654<br><br>Other Depreciation and Amortization<br><br><br><br><br>(31)<br><br><br><br><br>(150)<br><br><br><br><br>(170)<br><br><br><br><br>(374)<br><br>Amortization of Loan Costs and Discount on Convertible<br>Debt<br><br><br><br><br>212<br><br><br><br><br>478<br><br><br><br><br>446<br><br><br><br><br>953<br><br>Non<br>-<br>Cash Compensation<br><br><br><br><br>705<br><br><br><br><br>742<br><br><br><br><br>1,611<br><br><br><br><br>1,700<br><br>Non<br>-<br>Recurring G&A<br><br><br><br><br>—<br><br><br><br><br>62<br><br><br><br><br>—<br><br><br><br><br>155<br><br>Adjusted Funds From Operations Attributable to Common<br>Stockholders<br><br><br>$<br><br><br>8,890<br><br><br>$<br><br><br>6,294<br><br><br>$<br><br><br>17,607<br><br><br>$<br><br><br>11,981<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>FFO Attributable to Common Stockholders per Common Share<br>–<br><br>Diluted<br><br><br>$<br><br><br>1.<br>33<br><br><br>$<br><br><br>0.83<br><br><br>$<br><br>2.64<br><br><br>$<br><br><br>1.73<br><br>Core FFO Attributable to Common Stockholders per Common<br>Share<br>–<br><br>Diluted<br><br><br>$<br><br><br>1.<br>41<br><br><br>$<br><br><br>0.88<br><br><br>$<br><br><br>2.81<br><br><br>$<br><br><br>1.71<br><br>AFFO Attributable to Common Stockholders per Common Share<br>–<br><br>Diluted<br><br><br>$<br><br><br>1.<br>48<br><br><br>$<br><br><br>1.<br>07<br><br><br>$<br><br><br>2.96<br><br><br>$<br><br><br>2.03<br><br><br>(1)<br><br><br>Interest related to the 2025 Convertible Senior Notes excluded from net income attributable to the Company to derive FFO effe<br>ctive January<br>1, 2022 due to the implementation of ASU 2020<br>-<br>06 which requires presentation on an if<br>-<br>converted basis,<br>as the impact<br>to net income<br>attributable to common stockholders would be anti<br>-<br>dilutive<br>.. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>© CTO Realty Growth, Inc. | ctoreit.com<br>16<br>Non<br>-<br>GAAP Financial Measures<br>CTO Realty Growth, Inc.<br><br>Non<br>-<br>GAAP Financial Measures<br><br>Reconciliation of Net Debt to Pro Forma EBITDA<br><br>(Unaudited)<br><br>(In thousands)<br><br><br><br><br><br><br><br><br>Three Months Ended<br>June<br><br>3<br>0<br>, 2022<br><br>Net<br>Income Attributable to the Company<br><br>$<br><br>1,218<br><br>Depreciation and Amortization<br>of Real Estate<br><br><br>6,<br>707<br><br>Gains on Disposition of Other Assets<br><br><br><br>(<br>632<br>)<br><br>Unrealized Loss on Investment Securities<br><br><br><br>1,891<br><br>Distributions to Preferred Stockholders<br><br><br>(1<br>,196<br>)<br><br>Straight<br>-<br>Line Rent Adjustment<br><br><br><br>(<br>507<br>)<br><br>Amortization of Intangibles to Lease Income<br><br><br>497<br><br>Other<br>Depreciation and<br><br>Amortization<br><br><br><br>(<br>31<br>)<br><br>Amortization of Loan Costs and Discount on Convertible Debt<br><br><br><br>212<br><br>Non<br>-<br>Cash Compensation<br><br><br><br>705<br><br>Interest<br>Expense, Net of Amortization of Loan Costs and Discount on Convertible Debt<br><br><br><br>2,065<br><br>EBITDA<br><br>$<br><br>10,<br>929<br><br><br><br><br><br>Annualized EBITDA<br><br>$<br><br>4<br>3,716<br><br>Pro Forma Annualized Impact of Current Quarter Acquisitions and Dispositions, Net<br>(1)<br><br><br>3,050<br><br>Pro Forma EBITDA<br><br>$<br><br>4<br>6,766<br><br><br><br><br>Total Long<br>-<br>Term Debt<br><br><br>343,196<br><br>Financing Costs, Net of Accumulated Amortization<br><br><br>1,<br>194<br><br>Unamortized Convertible Debt<br>Discount<br><br><br>444<br><br>Cash & Cash Equivalents<br><br><br>(<br>7,137<br>)<br><br>Restricted Cash<br><br><br>(<br>27,<br>189<br>)<br><br>Net Debt<br><br>$<br><br>310,<br>50<br>8<br><br><br><br><br>Net Debt to Pro Forma EBITDA<br><br><br>6.<br>6<br>x<br><br><br><br><br>(1)<br><br><br>Reflects the pro forma annualized impact on Annualized EBITDA of the Company’s acquisition and disposition activity during th<br>e three<br>months ended<br>June 30<br>, 2022. |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Capitalization & Dividends<br>$ and shares outstanding in thousands, except per share data.<br>As of June 30, 2022, unless otherwise noted<br>Equity Capitalization<br>Common Shares Outstanding<br>6,083<br>Common Share Price<br>$61.12<br>Total Common Equity Market Capitalization<br>$371,770<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>$446,770<br>Debt Capitalization<br>Total Debt Outstanding<br>$344,834<br>Total Capitalization<br>$791,604<br>Cash, Restricted Cash & Cash Equivalents<br>$34,326<br>Total Enterprise Value<br>$757,278<br>Dividends Paid<br>Common<br>Preferred<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>Q2 2022<br>$1.12<br>$0.40<br>Trailing Twelve Months Q2 2022<br>$4.20<br>$1.57<br>Q2 2022 Core FFO Per Diluted Share<br>$1.41<br>Q2 2022 AFFO Per Diluted Share<br>$1.48<br>Q2 2022 Core FFO Payout Ratio<br>79.4%<br>Q2 2022 AFFO Payout Ratio<br>75.7%<br>Dividend Yield<br>Q2 2022<br>$1.12<br>$0.40<br>Annualized Q2 2022 Dividend<br>$4.48<br>$1.59<br>Price Per Share as of June 30, 2022<br>$61.12<br>$22.98<br>Implied Dividend Yield<br>7.3%<br>6.9%<br>17 | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Debt Summary<br>$ in thousands.<br>As of June 30, 2022, unless otherwise noted.<br>(1)<br>See reconciliation as part of Non<br>-<br>GAAP Financial Measures in the Company’s<br>Second<br>Quarter 2022 Earnings Release.<br>Indebtedness Outstanding<br>Face Value<br>Interest Rate<br>Maturity Date<br>Type<br>Revolving Credit Facility<br>$111,000<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>$344,834<br>2.63%<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>68%<br>Total Variable Rate Debt<br>111,000<br>30<br>-<br>Day LIBOR + [1.35%<br>–<br>1.95%]<br>32%<br>Total /<br>Wtd<br>.. Avg.<br>$344,834<br>2.63%<br>100%<br>Leverage Metrics<br>Face Value of Debt<br>$344,834<br>Cash, Restricted Cash & Cash Equivalents<br>($34,326)<br>Net Debt<br>$310,508<br>Total Enterprise Value<br>$757,278<br>Net Debt to Total Enterprise Value<br>41%<br>Net Debt to Pro Forma EBITDA<br>(1)<br>6.6x<br>18 | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Year<br>-<br>to<br>-<br>Date Investments<br>$ in thousands.<br>As of June 30, 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>March 2022<br>205,813<br>$39,100<br>95%<br>Total Acquisitions<br>205,813<br>$39,100<br>19<br>Structured Investments<br>Market<br>Type<br>Date<br>Originated<br>Capital<br>Commitment<br>Structure<br>Phase II of The Exchange at Gwinnett<br>–<br>Buford, GA<br>Atlanta, GA<br>Retail Outparcels<br>January 2022<br>$8,700<br>First Mortgage<br>Watters Creek at Montgomery Farm<br>–<br>Allen, TX<br>Dallas, TX<br>Grocery Anchored Retail<br>April 2022<br>$30,000<br>Preferred Equity<br>WaterStar Orlando<br>–<br>Kissimmee<br>, FL<br>Orlando, FL<br>Retail Outparcels<br>April 2022<br>$19,000<br>First Mortgage<br>Improvemeny<br>Loan at<br>Ashford<br>Lane<br>–<br>Atlanta, GA<br>Atlanta, GA<br>Tenant Improvement Loan<br>May 2022<br>$1,500<br>Landlord Financing<br>Total Structured Investments<br>$59,200 | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Property<br>Market<br>Type<br>Date Sold<br>Square<br>Feet<br>Price<br>Gain<br>(Loss)<br>Party City<br>–<br>Oceanside, NY<br>New York, NY<br>Single Tenant Retail<br>January 2022<br>15,500<br>$6,949<br>($60)<br>The Carpenter Hotel<br>–<br>Austin, TX<br>Austin, TX<br>Hospitality Ground Lease<br>March 2022<br>73,508<br>17,095<br>(178)<br>Total Dispositions<br>89,008<br>$24,044<br>($238)<br>Year<br>-<br>to<br>-<br>Date Dispositions<br>20<br>$ in thousands.<br>As of June 30, 2022. | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Portfolio Detail<br>21<br>Property<br>Type<br>Year<br>Acquired/<br>Developed<br>Square<br>Feet<br>In<br>-<br>Place<br>Occupancy<br>Leased<br>Occupancy<br>Cash<br>ABR<br>Cash ABR<br>PSF<br>Jacksonville, FL<br>The Strand at St. Johns Town Center<br>Multi<br>-<br>Tenant Retail<br>2019<br>204,573<br>95%<br>95%<br>$4,652<br>$22.74<br>245 Riverside<br>Multi<br>-<br>Tenant Office<br>2015<br>136,853<br>91%<br>92%<br>2,973<br>$21.73<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>356,324<br>94%<br>94%<br>$8,278<br>$23.23<br>Atlanta, GA<br>Ashford Lane<br>Multi<br>-<br>Tenant Retail<br>2020<br>282,839<br>71%<br>80%<br>$5,976<br>$21.13<br>The Exchange at Gwinnett<br>Multi<br>-<br>Tenant Retail<br>2021<br>69,265<br>89%<br>89%<br>1,956<br>$28.24<br>Total Atlanta, GA<br>352,104<br>74%<br>82%<br>$7,932<br>$22.53<br>Dallas, TX<br>The Shops at Legacy<br>Multi<br>-<br>Tenant Mixed Use<br>2021<br>237,572<br>92%<br>96%<br>$7,041<br>$29.64<br>Westcliff Shopping Center<br>Multi<br>-<br>Tenant Retail<br>2017<br>136,185<br>60%<br>60%<br>499<br>$3.67<br>Total Dallas, TX<br>373,757<br>80%<br>83%<br>$7,540<br>$20.18<br>Raleigh, NC<br>Beaver Creek Crossings<br>Multi<br>-<br>Tenant Retail<br>2021<br>321,977<br>96%<br>98%<br>$5,312<br>$16.50<br>Phoenix, AZ<br>Crossroads Town Center<br>Multi<br>-<br>Tenant Retail<br>2020<br>244,843<br>100%<br>100%<br>$4,949<br>$20.21<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>137,659<br>74%<br>85%<br>$2,738<br>$19.89<br>$ in thousands, except per square foot data. | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Portfolio Detail<br>$ in thousands, except per square foot data.<br>22<br>Property<br>Type<br>Year<br>Acquired/<br>Developed<br>Square<br>Feet<br>In<br>-<br>Place<br>Occupancy<br>Leased<br>Occupancy<br>Cash<br>ABR<br>Cash ABR<br>PSF<br>Tampa, FL<br>Sabal Pavilion<br>Single Tenant Office<br>2020<br>120,500<br>100%<br>100%<br>$2,265<br>$18.80<br>Salt Lake City, UT<br>Jordan Landing<br>Multi<br>-<br>Tenant Retail<br>2021<br>170,996<br>100%<br>100%<br>$1,670<br>$9.77<br>Washington, DC<br>General Dynamics<br>Single Tenant Office<br>2019<br>64,319<br>100%<br>100%<br>$1,580<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>2,839,744<br>91%<br>93%<br>$53,246<br>$18.75 | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Leasing Summary<br>$ and square feet in thousands, except per square foot data.<br>23<br>Renewals and Extensions<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Q4 2022<br>2022<br>Leases<br>8<br>5<br>13<br>Square Feet<br>32.5<br>10.2<br>42.7<br>New Cash Rent PSF<br>$31.57<br>$29.28<br>$31.02<br>Tenant Improvements<br>$368<br>$0<br>$368<br>Leasing Commissions<br>$36<br>$28<br>$64<br>Weighted Average Term<br>6.2<br>3.6<br>5.4<br>New Leases<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Q4 2022<br>2022<br>Leases<br>10<br>7<br>17<br>Square Feet<br>24.4<br>30.9<br>55.3<br>New Cash Rent PSF<br>$31.32<br>$32.66<br>$32.07<br>Tenant Improvements<br>$691<br>$2,721<br>$3,412<br>Leasing Commissions<br>$335<br>$298<br>$633<br>Weighted Average Term<br>8.9<br>12.2<br>10.1<br>All Leases Summary<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Q4 2022<br>2022<br>Leases<br>18<br>12<br>30<br>Square Feet<br>56.9<br>41.1<br>98.0<br>New Cash Rent PSF<br>$31.46<br>$31.82<br>$31.61<br>Tenant Improvements<br>$1,059<br>$2,721<br>$3,780<br>Leasing Commissions<br>$371<br>$326<br>$697<br>Weighted Average Term<br>6.6<br>10.3<br>8.1 | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Lease Expiration Schedule<br>$ and square feet in thousands.<br>24<br>Year<br>Leases Expiring<br>Expiring SF<br>% of Total<br>Cash ABR<br>% of Total<br>2022<br>19<br>70<br>2.5%<br>1,623<br>3.0%<br>2023<br>25<br>165<br>5.8%<br>3,733<br>7.0%<br>2024<br>20<br>66<br>2.3%<br>1,792<br>3.4%<br>2025<br>21<br>138<br>4.9%<br>3,821<br>7.2%<br>2026<br>43<br>417<br>14.7%<br>7,615<br>14.3%<br>2027<br>38<br>382<br>13.5%<br>5,998<br>11.3%<br>2028<br>21<br>479<br>16.9%<br>9,412<br>17.7%<br>2029<br>18<br>238<br>8.4%<br>4,515<br>8.5%<br>2030<br>10<br>95<br>3.3%<br>1,814<br>3.4%<br>2031<br>26<br>89<br>3.1%<br>2,641<br>5.0%<br>Thereafter<br>24<br>455<br>16.0%<br>10,283<br>19.3%<br>Total<br>265<br>2,594<br>91.3%<br>53,246<br>100.0%<br>Vacant<br>246<br>8.7%<br>Total<br>2,840<br>100.0% | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Top Tenant Summary<br>25<br>Tenant/Concept<br>Credit<br>Rating<br>(1)<br>Leases<br>Leased<br>Square Feet<br>% of Total<br>Cash ABR<br>% of Total<br>Fidelity<br>A+<br>1<br>210<br>7.4%<br>3,567<br>6.7%<br>Ford Motor Credit<br>BB+<br>1<br>121<br>4.2%<br>2,265<br>4.3%<br>WeWork<br>CCC+<br>1<br>59<br>2.1%<br>1,977<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>2.9%<br>Seritage Growth Properties<br>Not Rated<br>1<br>108<br>3.8%<br>1,460<br>2.7%<br>Ross/dd’s DISCOUNT<br>BBB+<br>4<br>106<br>3.7%<br>1,334<br>2.5%<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>956<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>1.3%<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>Dick’s Sporting Goods<br>BBB<br>1<br>45<br>1.6%<br>494<br>0.9%<br>Other<br>236<br>1,228<br>43.2%<br>29,476<br>55.4%<br>Total<br>265<br>2,594<br>91.3%<br>53,246<br>100.0%<br>Vacant<br>246<br>8.7%<br>Total<br>2,840<br>100.0%<br>$ and square feet in thousands.<br>(1)<br>A credit rated, or investment grade rated tenant (rating of BBB<br>-<br>, NAIC<br>-<br>2 or Baa3 or higher) is a tenant or the parent of a t<br>enant with a credit rating from S&P Global Ratings, Moody’s Investors Service, Fitch Ratings or the<br>National Association of Insurance Commissioners (NAIC). | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Geographic Diversification<br>26<br>Markets<br>Leases<br>Square Feet<br>% of Total<br>Cash ABR<br>% of Total<br>Jacksonville, FL<br>4<br>356<br>12.5%<br>8,278<br>15.5%<br>Atlanta, GA<br>2<br>352<br>12.4%<br>7,931<br>14.9%<br>Dallas, TX<br>2<br>374<br>13.2%<br>7,541<br>14.2%<br>Raleigh, NC<br>1<br>322<br>11.3%<br>5,312<br>10.0%<br>Phoenix, AZ<br>1<br>245<br>8.6%<br>4,949<br>9.3%<br>Albuquerque, NM<br>1<br>210<br>7.4%<br>3,567<br>6.7%<br>Houston, TX<br>1<br>206<br>7.2%<br>3,164<br>5.9%<br>Santa Fe, NM<br>1<br>138<br>4.8%<br>2,738<br>5.1%<br>Tampa, FL<br>1<br>121<br>4.2%<br>2,265<br>4.3%<br>Salt Lake City, UT<br>1<br>171<br>6.0%<br>1,670<br>3.1%<br>Washington, DC<br>1<br>64<br>2.3%<br>1,580<br>3.0%<br>Las Vegas, NV<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>2.7%<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>2,840<br>100.0%<br>53,246<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>13,255<br>24.9%<br>Texas<br>3<br>580<br>20.4%<br>10,705<br>20.1%<br>Georgia<br>2<br>353<br>12.4%<br>7,931<br>14.9%<br>New Mexico<br>2<br>347<br>12.2%<br>6,305<br>11.8%<br>North Carolina<br>1<br>322<br>11.3%<br>5,312<br>10.0%<br>Arizona<br>1<br>245<br>8.6%<br>4,949<br>9.3%<br>Utah<br>1<br>171<br>6.0%<br>1,670<br>3.1%<br>Virginia<br>1<br>64<br>2.3%<br>1,580<br>3.0%<br>Nevada<br>1<br>133<br>4.7%<br>1,539<br>2.9%<br>Total<br>21<br>2,840<br>100.0%<br>53,246<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>As<br>of June 30, 2022.<br>27<br>Investment Securities<br>Shares & Operating<br>Partnership Units<br>Owned<br>Value Per Share<br>June 30, 2022<br>Estimated<br>Value<br>Annualized<br>Dividend Per<br>Share<br>In<br>-<br>Place Annualized<br>Dividend Income<br>Alpine Income Property Trust<br>2,148<br>$17.92<br>$38,490<br>$1.08<br>$2,320<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>Watters Creek at Montgomery Farm<br>Preferred Investment<br>April 2022<br>April 2025<br>30,000<br>30,000<br>8.50%<br>WaterStar Orlando<br>Construction Loan<br>April 2022<br>August 2022<br>19,000<br>16,068<br>8.00%<br>Improvement Loan at Ashford Lane<br>Improvement Loan<br>May 2022<br>April 2025<br>1,500<br>1,053<br>12.00%<br>Total Structured Investments<br>$59,964<br>$47,885<br>Subsurface Interests<br>Acreage<br>Estimated Value<br>Acres Available for<br>Sale<br>356,000 acres<br>$5,000<br>Mitigation Credits and Rights<br>State Credits<br>Federal Credits<br>Total Book Value<br>Mitigation Credits<br>41.0<br>18.8<br>$<br>3,400<br>Mitigation Credit Rights<br>257.6<br>156.4<br>21,000<br>Total Mitigation Credits<br>298.6<br>175.2<br>$<br>24,400 | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>2022 Guidance<br>$ and shares outstanding in millions, except per share data.<br>As of July 28, 2022.<br>28<br>Low<br>High<br>Acquisition & Structured Investments<br>$250<br>-<br>$275<br>Target Initial Investment Cash Yield<br>7.00%<br>-<br>7.25%<br>Dispositions<br>$50<br>-<br>$80<br>Target Disposition Cash Yield<br>6.25%<br>-<br>6.75%<br>Core FFO Per Diluted Share<br>$1.58<br>-<br>$1.64<br>AFFO Per Diluted Share<br>$1.70<br>-<br>$1.76<br>Weighted Average Diluted Shares Outstanding<br>18.3<br>-<br>18.5<br>The<br>Company<br>has<br>increased<br>its<br>outlook<br>for<br>2022<br>to<br>take<br>into<br>account<br>the<br>Company’s<br>year<br>-<br>to<br>-<br>date<br>performance<br>and<br>revised<br>expectations<br>regarding<br>the<br>Company’s<br>investment<br>activities,<br>forecasted<br>capital<br>markets<br>transactions,<br>and<br>other<br>significant<br>assumptions<br>..<br>The<br>revised<br>per<br>share<br>estimates<br>take<br>into<br>account<br>the<br>Company’s<br>recently<br>completed<br>three<br>-<br>for<br>-<br>one<br>stock<br>split<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>EF Hutton<br>Guarav<br>Mehta<br>gmehta@efhuttongroup.com<br>(212) 970<br>-<br>5261<br>Janney<br>Rob Stevenson<br>robstevenson@janney.com<br>(646) 840<br>-<br>3217<br>Jones Research<br>Jason Stewart<br>jstewart@jonestrading.com<br>(646) 465<br>-<br>9932<br>Raymond James<br>RJ Milligan<br>rjmilligan@raymondjames.com<br>(727) 567<br>-<br>2585<br>29 | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Safe Harbor<br>30<br>Certain<br>statements<br>contained<br>in<br>this<br>presentation<br>(other<br>than<br>statements<br>of<br>historical<br>fact)<br>are<br>forward<br>-<br>looking<br>statements<br>within<br>the<br>meaning<br>of<br>Section<br>27<br>A<br>of<br>the<br>Securities<br>Act<br>of<br>1933<br>,<br>as<br>amended<br>and<br>Section<br>21<br>E<br>of<br>the<br>Securities<br>Exchange<br>Act<br>of<br>1934<br>,<br>as<br>amended<br>..<br>Forward<br>-<br>looking<br>statements<br>can<br>typically<br>be<br>identified<br>by<br>words<br>such<br>as<br>“believe,”<br>“estimate,”<br>“expect,”<br>“intend,”<br>“anticipate,”<br>“will,”<br>“could,”<br>“may,”<br>“should,”<br>“plan,”<br>“potential,”<br>“predict,”<br>“forecast,”<br>“project,”<br>and<br>similar<br>expressions,<br>as<br>well<br>as<br>variations<br>or<br>negatives<br>of<br>these<br>words<br>..<br>Although<br>forward<br>-<br>looking<br>statements<br>are<br>made<br>based<br>upon<br>management’s<br>present<br>expectations<br>and<br>reasonable<br>beliefs<br>concerning<br>future<br>developments<br>and<br>their<br>potential<br>effect<br>upon<br>the<br>Company,<br>a<br>number<br>of<br>factors<br>could<br>cause<br>the<br>Company’s<br>actual<br>results<br>to<br>differ<br>materially<br>from<br>those<br>set<br>forth<br>in<br>the<br>forward<br>-<br>looking<br>statements<br>..<br>Such<br>factors<br>may<br>include,<br>but<br>are<br>not<br>limited<br>to<br>:<br>the<br>Company’s<br>ability<br>to<br>remain<br>qualified<br>as<br>a<br>REIT<br>;<br>the<br>Company’s<br>exposure<br>to<br>U<br>..<br>S<br>..<br>federal<br>and<br>state<br>income<br>tax<br>law<br>changes,<br>including<br>changes<br>to<br>the<br>REIT<br>requirements<br>;<br>general<br>adverse<br>economic<br>and<br>real<br>estate<br>conditions<br>;<br>macroeconomic<br>and<br>geopolitical<br>factors,<br>including<br>but<br>not<br>limited<br>to<br>inflationary<br>pressures,<br>interest<br>rate<br>volatility,<br>global<br>supply<br>chain<br>disruptions,<br>and<br>ongoing<br>geopolitical<br>war<br>;<br>the<br>ultimate<br>geographic<br>spread,<br>severity<br>and<br>duration<br>of<br>pandemics<br>such<br>as<br>the<br>COVID<br>-<br>19<br>Pandemic<br>and<br>its<br>variants,<br>actions<br>that<br>may<br>be<br>taken<br>by<br>governmental<br>authorities<br>to<br>contain<br>or<br>address<br>the<br>impact<br>of<br>such<br>pandemics,<br>and<br>the<br>potential<br>negative<br>impacts<br>of<br>such<br>pandemics<br>on<br>the<br>global<br>economy<br>and<br>the<br>Company’s<br>financial<br>condition<br>and<br>results<br>of<br>operations<br>;<br>the<br>inability<br>of<br>major<br>tenants<br>to<br>continue<br>paying<br>their<br>rent<br>or<br>obligations<br>due<br>to<br>bankruptcy,<br>insolvency<br>or<br>a<br>general<br>downturn<br>in<br>their<br>business<br>;<br>the<br>loss<br>or<br>failure,<br>or<br>decline<br>in<br>the<br>business<br>or<br>assets<br>of<br>PINE<br>;<br>the<br>completion<br>of<br>1031<br>exchange<br>transactions<br>;<br>the<br>availability<br>of<br>investment<br>properties<br>that<br>meet<br>the<br>Company’s<br>investment<br>goals<br>and<br>criteria<br>;<br>the<br>uncertainties<br>associated<br>with<br>obtaining<br>required<br>governmental<br>permits<br>and<br>satisfying<br>other<br>closing<br>conditions<br>for<br>planned<br>acquisitions<br>and<br>sales<br>;<br>and<br>the<br>uncertainties<br>and<br>risk<br>factors<br>discussed<br>in<br>the<br>Company’s<br>Annual<br>Report<br>on<br>Form<br>10<br>-<br>K<br>for<br>the<br>fiscal<br>year<br>ended<br>December<br>31<br>,<br>2021<br>and<br>other<br>risks<br>and<br>uncertainties<br>discussed<br>from<br>time<br>to<br>time<br>in<br>the<br>Company’s<br>filings<br>with<br>the<br>U<br>..<br>S<br>..<br>Securities<br>and<br>Exchange<br>Commission<br>..<br>There<br>can<br>be<br>no<br>assurance<br>that<br>future<br>developments<br>will<br>be<br>in<br>accordance<br>with<br>management’s<br>expectations<br>or<br>that<br>the<br>effect<br>of<br>future<br>developments<br>on<br>the<br>Company<br>will<br>be<br>those<br>anticipated<br>by<br>management<br>..<br>Readers<br>are<br>cautioned<br>not<br>to<br>place<br>undue<br>reliance<br>on<br>these<br>forward<br>-<br>looking<br>statements,<br>which<br>speak<br>only<br>as<br>of<br>the<br>date<br>of<br>this<br>presentation<br>..<br>The<br>Company<br>undertakes<br>no<br>obligation<br>to<br>update<br>the<br>information<br>contained<br>in<br>this<br>press<br>release<br>to<br>reflect<br>subsequently<br>occurring<br>events<br>or<br>circumstances<br>.. | |
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| © CTO Realty Growth, Inc. | ctoreit.com<br>Non<br>-<br>GAAP Financial Measures<br>31<br>Our<br>reported<br>results<br>are<br>presented<br>in<br>accordance<br>with<br>accounting<br>principles<br>generally<br>accepted<br>in<br>the<br>United<br>States<br>of<br>America<br>(“GAAP”)<br>..<br>We<br>also<br>disclose<br>Funds<br>From<br>Operations<br>(“FFO”),<br>Core<br>Funds<br>From<br>Operations<br>(“Core<br>FFO”),<br>Adjusted<br>Funds<br>From<br>Operations<br>(“AFFO”),<br>Pro<br>Forma<br>Earnings<br>Before<br>Interest,<br>Taxes,<br>Depreciation<br>and<br>Amortization<br>(“Pro<br>Forma<br>EBITDA”),<br>and<br>Same<br>-<br>Property<br>Net<br>Operating<br>Income<br>(“Same<br>-<br>Property<br>NOI”),<br>each<br>of<br>which<br>are<br>non<br>-<br>GAAP<br>financial<br>measures<br>..<br>We<br>believe<br>these<br>non<br>-<br>GAAP<br>financial<br>measures<br>are<br>useful<br>to<br>investors<br>because<br>they<br>are<br>widely<br>accepted<br>industry<br>measures<br>used<br>by<br>analysts<br>and<br>investors<br>to<br>compare<br>the<br>operating<br>performance<br>of<br>REITs<br>..<br>FFO,<br>Core<br>FFO,<br>AFFO,<br>Pro<br>Forma<br>EBITDA,<br>and<br>Same<br>-<br>Property<br>NOI<br>do<br>not<br>represent<br>cash<br>generated<br>from<br>operating<br>activities<br>and<br>are<br>not<br>necessarily<br>indicative<br>of<br>cash<br>available<br>to<br>fund<br>cash<br>requirements<br>;<br>accordingly,<br>they<br>should<br>not<br>be<br>considered<br>alternatives<br>to<br>net<br>income<br>as<br>a<br>performance<br>measure<br>or<br>cash<br>flows<br>from<br>operating<br>activities<br>as<br>reported<br>on<br>our<br>statement<br>of<br>cash<br>flows<br>as<br>a<br>liquidity<br>measure<br>and<br>should<br>be<br>considered<br>in<br>addition<br>to,<br>and<br>not<br>in<br>lieu<br>of,<br>GAAP<br>financial<br>measures<br>..<br>We<br>compute<br>FFO<br>in<br>accordance<br>with<br>the<br>definition<br>adopted<br>by<br>the<br>Board<br>of<br>Governors<br>of<br>the<br>National<br>Association<br>of<br>Real<br>Estate<br>Investment<br>Trusts,<br>or<br>NAREIT<br>..<br>NAREIT<br>defines<br>FFO<br>as<br>GAAP<br>net<br>income<br>or<br>loss<br>adjusted<br>to<br>exclude<br>extraordinary<br>items<br>(as<br>defined<br>by<br>GAAP),<br>net<br>gain<br>or<br>loss<br>from<br>sales<br>of<br>depreciable<br>real<br>estate<br>assets,<br>impairment<br>write<br>-<br>downs<br>associated<br>with<br>depreciable<br>real<br>estate<br>assets<br>and<br>real<br>estate<br>related<br>depreciation<br>and<br>amortization,<br>including<br>the<br>pro<br>rata<br>share<br>of<br>such<br>adjustments<br>of<br>unconsolidated<br>subsidiaries<br>..<br>The<br>Company<br>also<br>excludes<br>the<br>gains<br>or<br>losses<br>from<br>sales<br>of<br>assets<br>incidental<br>to<br>the<br>primary<br>business<br>of<br>the<br>REIT<br>which<br>specifically<br>include<br>the<br>sales<br>of<br>mitigation<br>credits,<br>impact<br>fee<br>credits,<br>subsurface<br>sales,<br>and<br>land<br>sales,<br>in<br>addition<br>to<br>the<br>mark<br>-<br>to<br>-<br>market<br>of<br>the<br>Company’s<br>investment<br>securities<br>and<br>interest<br>related<br>to<br>the<br>2025<br>Convertible<br>Senior<br>Notes,<br>if<br>the<br>effect<br>is<br>dilutive<br>..<br>To<br>derive<br>Core<br>FFO,<br>we<br>modify<br>the<br>NAREIT<br>computation<br>of<br>FFO<br>to<br>include<br>other<br>adjustments<br>to<br>GAAP<br>net<br>income<br>related<br>to<br>gains<br>and<br>losses<br>recognized<br>on<br>the<br>extinguishment<br>of<br>debt,<br>amortization<br>of<br>above<br>-<br>and<br>below<br>-<br>market<br>lease<br>related<br>intangibles,<br>and<br>other<br>unforecastable<br>market<br>-<br>or<br>transaction<br>-<br>driven<br>non<br>-<br>cash<br>items<br>..<br>To<br>derive<br>AFFO,<br>we<br>further<br>modify<br>the<br>NAREIT<br>computation<br>of<br>FFO<br>and<br>Core<br>FFO<br>to<br>include<br>other<br>adjustments<br>to<br>GAAP<br>net<br>income<br>related<br>to<br>non<br>-<br>cash<br>revenues<br>and<br>expenses<br>such<br>as<br>straight<br>-<br>line<br>rental<br>revenue,<br>non<br>-<br>cash<br>compensation,<br>and<br>other<br>non<br>-<br>cash<br>amortization,<br>as<br>well<br>as<br>adding<br>back<br>the<br>interest<br>related<br>to<br>the<br>2025<br>Convertible<br>Senior<br>Notes,<br>if<br>the<br>effect<br>is<br>dilutive<br>..<br>Such<br>items<br>may<br>cause<br>short<br>-<br>term<br>fluctuations<br>in<br>net<br>income<br>but<br>have<br>no<br>impact<br>on<br>operating<br>cash<br>flows<br>or<br>long<br>-<br>term<br>operating<br>performance<br>..<br>We<br>use<br>AFFO<br>as<br>one<br>measure<br>of<br>our<br>performance<br>when<br>we<br>formulate<br>corporate<br>goals<br>..<br>To<br>derive<br>Pro<br>Forma<br>EBITDA,<br>GAAP<br>net<br>income<br>or<br>loss<br>is<br>adjusted<br>to<br>exclude<br>extraordinary<br>items<br>(as<br>defined<br>by<br>GAAP),<br>net<br>gain<br>or<br>loss<br>from<br>sales<br>of<br>depreciable<br>real<br>estate<br>assets,<br>impairment<br>write<br>-<br>downs<br>associated<br>with<br>depreciable<br>real<br>estate<br>assets<br>and<br>real<br>estate<br>related<br>depreciation<br>and<br>amortization,<br>including<br>the<br>pro<br>rata<br>share<br>of<br>such<br>adjustments<br>of<br>unconsolidated<br>subsidiaries,<br>non<br>-<br>cash<br>revenues<br>and<br>expenses<br>such<br>as<br>straight<br>-<br>line<br>rental<br>revenue,<br>amortization<br>of<br>deferred<br>financing<br>costs,<br>above<br>-<br>and<br>below<br>-<br>market<br>lease<br>related<br>intangibles,<br>non<br>-<br>cash<br>compensation,<br>and<br>other<br>non<br>-<br>cash<br>income<br>or<br>expense<br>..<br>Cash<br>interest<br>expense<br>is<br>also<br>excluded<br>from<br>Pro<br>Forma<br>EBITDA,<br>and<br>GAAP<br>net<br>income<br>or<br>loss<br>is<br>adjusted<br>for<br>the<br>annualized<br>impact<br>of<br>acquisitions,<br>dispositions<br>and<br>other<br>similar<br>activities<br>.. 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| © CTO Realty Growth, Inc. | ctoreit.com<br>Non<br>-<br>GAAP Financial Measures<br>32<br>To<br>derive<br>Same<br>-<br>Property<br>NOI,<br>GAAP<br>net<br>income<br>or<br>loss<br>attributable<br>to<br>the<br>Company<br>is<br>adjusted<br>to<br>exclude<br>extraordinary<br>items<br>(as<br>defined<br>by<br>GAAP),<br>gain<br>or<br>loss<br>on<br>disposition<br>of<br>assets,<br>gain<br>or<br>loss<br>on<br>extinguishment<br>of<br>debt,<br>impairment<br>charges,<br>and<br>depreciation<br>and<br>amortization,<br>including<br>the<br>pro<br>rata<br>share<br>of<br>such<br>adjustments<br>of<br>unconsolidated<br>subsidiaries,<br>if<br>any,<br>non<br>-<br>cash<br>revenues<br>and<br>expenses<br>such<br>as<br>above<br>-<br>and<br>below<br>-<br>market<br>lease<br>related<br>intangibles,<br>straight<br>-<br>line<br>rental<br>revenue,<br>and<br>other<br>non<br>-<br>cash<br>income<br>or<br>expense<br>..<br>Interest<br>expense,<br>general<br>and<br>administrative<br>expenses,<br>investment<br>and<br>other<br>income<br>or<br>loss,<br>income<br>tax<br>benefit<br>or<br>expense,<br>real<br>estate<br>operations<br>revenues<br>and<br>direct<br>cost<br>of<br>revenues,<br>management<br>fee<br>income,<br>and<br>interest<br>income<br>from<br>commercial<br>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>33<br>References<br>and<br>terms<br>used<br>in<br>this<br>presentation<br>that<br>are<br>in<br>addition<br>to<br>terms<br>defined<br>in<br>the<br>Non<br>-<br>GAAP<br>Financial<br>Measures<br>include<br>:<br>▪<br>This<br>presentation<br>has<br>been<br>published<br>on<br>July<br>28<br>,<br>2022<br>..<br>▪<br>All<br>information<br>is<br>as<br>of<br>June<br>30<br>,<br>2022<br>,<br>unless<br>otherwise<br>noted<br>..<br>▪<br>Any<br>calculation<br>differences<br>are<br>assumed<br>to<br>be<br>a<br>result<br>of<br>rounding<br>..<br>▪<br>“<br>2022<br>Guidance”<br>is<br>based<br>on<br>the<br>2022<br>Outlook<br>provided<br>in<br>the<br>Company’s<br>Second<br>Quarter<br>2022<br>Operating<br>Results<br>press<br>release<br>filed<br>on<br>July<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>June<br>30<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>June<br>30<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>Association<br>of<br>Insurance<br>Commissioners<br>(NAIC)<br>(together,<br>the<br>“Major<br>Rating<br>Agencies”)<br>..<br>An<br>“Investment<br>Grade<br>Rated<br>Tenant”<br>or<br>“IG”<br>references<br>a<br>Credit<br>Rated<br>tenant<br>or<br>the<br>parent<br>of<br>a<br>tenant,<br>or<br>credit<br>rating<br>thereof<br>with<br>a<br>rating<br>of<br>BBB<br>-<br>,<br>Baa<br>3<br>or<br>NAIC<br>-<br>2<br>or<br>higher<br>from<br>one<br>or<br>more<br>of<br>the<br>Major<br>Rating<br>Agencies<br>..<br>▪<br>“Contractual<br>Base<br>Rent”<br>or<br>“CBR”<br>represents<br>the<br>amount<br>owed<br>to<br>the<br>Company<br>under<br>the<br>terms<br>of<br>its<br>lease<br>agreements<br>at<br>the<br>time<br>referenced<br>..<br>▪<br>“Dividend”<br>or<br>“Dividends”,<br>subject<br>to<br>the<br>required<br>dividends<br>to<br>maintain<br>our<br>qualification<br>as<br>a<br>REIT,<br>are<br>set<br>by<br>the<br>Board<br>of<br>Directors<br>and<br>declared<br>on<br>a<br>quarterly<br>basis<br>and<br>there<br>can<br>be<br>no<br>assurances<br>as<br>to<br>the<br>likelihood<br>or<br>number<br>of<br>dividends<br>in<br>the<br>future<br>..<br>▪<br>“Investment<br>in<br>Alpine<br>Income<br>Property<br>Trust”<br>or<br>“Alpine<br>Investment”<br>or<br>“PINE<br>Ownership”<br>is<br>calculated<br>based<br>on<br>the<br>2<br>,<br>147<br>,<br>510<br>common<br>shares<br>and<br>partnership<br>units<br>CTO<br>owns<br>in<br>PINE<br>and<br>is<br>based<br>on<br>PINE’s<br>closing<br>stock<br>price<br>..<br>▪<br>“Leased<br>Occupancy”<br>refers<br>to<br>space<br>that<br>is<br>currently<br>leased<br>but<br>for<br>which<br>rent<br>payments<br>have<br>not<br>yet<br>commenced<br>..<br>▪<br>“MSA”<br>or<br>“Metropolitan<br>Statistical<br>Area”<br>is<br>a<br>region<br>that<br>consists<br>of<br>a<br>city<br>and<br>surrounding<br>communities<br>that<br>are<br>linked<br>by<br>social<br>and<br>economic<br>factors,<br>as<br>established<br>by<br>the<br>U<br>..<br>S<br>..<br>Office<br>of<br>Management<br>and<br>Budget<br>..<br>The<br>names<br>of<br>the<br>MSA<br>have<br>been<br>shortened<br>for<br>ease<br>of<br>reference<br>..<br>▪<br>“Net<br>Debt”<br>is<br>calculated<br>as<br>our<br>total<br>long<br>-<br>term<br>debt<br>as<br>presented<br>on<br>the<br>face<br>of<br>our<br>balance<br>sheet<br>;<br>plus<br>financing<br>costs,<br>net<br>of<br>accumulated<br>amortization<br>and<br>unamortized<br>convertible<br>debt<br>discount<br>;<br>less<br>cash,<br>restricted<br>cash<br>and<br>cash<br>equivalents<br>..<br>▪<br>“Net<br>Operating<br>Income”<br>or<br>“NOI”<br>is<br>revenues<br>from<br>all<br>income<br>properties<br>less<br>operating<br>expense,<br>maintenance<br>expense,<br>real<br>estate<br>taxes<br>and<br>rent<br>expense<br>..<br>▪<br>“Total<br>Enterprise<br>Value”<br>is<br>calculated<br>as<br>the<br>Company’s<br>Total<br>Common<br>Shares<br>Outstanding<br>multiplied<br>by<br>the<br>common<br>stock<br>price<br>;<br>plus<br>the<br>par<br>value<br>of<br>the<br>Series<br>A<br>perpetual<br>preferred<br>equity<br>outstanding<br>and<br>Net<br>Debt<br>.. 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