CTO Realty Growth, Inc. (NYSE: CTO) (the “Company” or “CTO”) today
announced its operating results and earnings for the quarter ended
June 30, 2024.
Second Quarter and Recent
Highlights
- Reported Net
Loss per diluted share attributable to common stockholders of
$(0.03) for the quarter ended June 30, 2024.
- Reported Core
FFO per diluted share attributable to common stockholders of $0.45
for the quarter ended June 30, 2024.
- Reported AFFO
per diluted share attributable to common stockholders of $0.48 for
the quarter ended June 30, 2024.
- Received net
proceeds of $33.1 million from the completion of a follow-on public
offering of 1,718,417 shares of the Company’s 6.375% Series A
Cumulative Redeemable Preferred Stock.
- Received net
proceeds of $4.3 million from the issuance of 248,960 common shares
under the Company’s ATM offering program.
- Received
proceeds of $15.2 million as an early repayment of our Sabal
Pavilion seller-financing loan.
- The Company has
approximately $155 million of total liquidity as of June 30, 2024,
including $150 million of undrawn commitments on our Revolving
Credit Facility.
- Reported an
increase in Same-Property NOI of 2.0% as compared to the second
quarter of 2023 and an increase of 4.0% for the six months ended
June 30, 2024, as compared to the same period of 2023.
- Signed not open
pipeline represents $4.7 million, or 5.9%, of annual cash base rent
in place as of June 30, 2024.
- Increased full
year Core FFO guidance to $1.81 to $1.86 per diluted share and full
year AFFO guidance to $1.95 to $2.00 per diluted share,
representing increases of 11.9% and 11.0%, respectively, at the
midpoint of these ranges.
CEO Comments
“We are pleased that our strong leasing results
over the past year are starting to deliver meaningful Same-Property
NOI growth, including an increase of 4% for the first half of the
year,” said John P. Albright, President and Chief Executive Officer
of CTO Realty Growth. “The strength of our leasing continued this
quarter with an 8.8% leasing spread on comparable leases. Given our
solid earnings and increased investment activity outlook, we have
increased our full-year Core FFO and AFFO guidance by 11.9% and
11.0%, respectively, at the mid-points of the ranges, and are
looking forward to an active second half of 2024.”
Quarterly Financial Results
Highlights
The table below provides a summary of the
Company’s operating results for the three months ended June 30,
2024:
| |
|
Three Months Ended |
|
|
|
|
(in thousands, except per share data) |
June 30,2024 |
|
June 30,2023 |
|
Variance to ComparablePeriod in the Prior
Year |
|
|
Net Income Attributable to the Company |
$ |
1,183 |
|
|
$ |
1,800 |
|
|
$ |
(617 |
) |
|
|
(34.3 |
)% |
|
|
Net Income (Loss) Attributable to CommonStockholders |
$ |
(688 |
) |
|
$ |
605 |
|
|
$ |
(1,293 |
) |
|
|
(213.7 |
)% |
|
|
Net Income (Loss) Attributable to CommonStockholders per Common
Share - Diluted (1) |
$ |
(0.03 |
) |
|
$ |
0.03 |
|
|
$ |
(0.06 |
) |
|
|
(200.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core FFO Attributable to Common Stockholders (2) |
$ |
10,353 |
|
|
$ |
9,608 |
|
|
$ |
745 |
|
|
|
7.8 |
% |
|
|
Core FFO Attributable to Common Stockholdersper Common Share -
Diluted (2) |
$ |
0.45 |
|
|
$ |
0.43 |
|
|
$ |
0.02 |
|
|
|
4.7 |
% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO Attributable to Common Stockholders (2) |
$ |
11,051 |
|
|
$ |
10,781 |
|
|
$ |
270 |
|
|
|
2.5 |
% |
|
|
AFFO Attributable to Common Stockholdersper Common Share - Diluted
(2) |
$ |
0.48 |
|
|
$ |
0.48 |
|
|
$ |
— |
|
|
|
0.0 |
% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends Declared and Paid - Preferred Stock |
$ |
0.40 |
|
|
$ |
0.40 |
|
|
$ |
— |
|
|
|
0.0 |
% |
|
| Dividends Declared
and Paid - Common Stock |
$ |
0.38 |
|
|
$ |
0.38 |
|
|
$ |
— |
|
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
The denominator for this measure excludes the impact of 3.6 million
and 3.3 million shares for the three months ended June 30, 2024 and
2023, respectively, related to the Company’s adoption of ASU
2020-06, effective January 1, 2022, which requires presentation on
an if-converted basis for 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
Attributable to Common Stockholders per Common Share - Diluted,
Core FFO Attributable to Common Stockholders, Core FFO Attributable
to Common Stockholders per Common Share - Diluted, AFFO
Attributable to Common Stockholders, and AFFO Attributable to
Common Stockholders per Common Share - Diluted. Further, the
weighted average shares used to compute per share amounts for Core
FFO Attributable to Common Stockholders per Common Share - Diluted
and AFFO Attributable to Common Stockholders per Common Share -
Diluted do not reflect any dilution related to the ultimate
settlement of the 2025 Convertible Senior Notes. |
|
|
|
|
|
Year-to-Date Financial Results
Highlights
The table below provides a summary of the
Company’s operating results for the six months ended June 30,
2024:
| |
|
Six Months Ended |
|
|
|
(in thousands, except per share data) |
June 30,2024 |
|
|
June 30,2023 |
|
Variance to ComparablePeriod in the Prior
Year |
|
|
Net Income (Loss) Attributable to the Company |
$ |
7,025 |
|
|
$ |
(4,193 |
) |
|
|
$ |
11,218 |
|
|
267.5 |
% |
|
|
Net Income (Loss) Attributable to CommonStockholders |
$ |
3,967 |
|
|
$ |
(6,583 |
) |
|
|
$ |
10,550 |
|
|
160.3 |
% |
|
|
Net Income (Loss) Attributable to CommonStockholders per Common
Share - Diluted (1) |
$ |
0.17 |
|
|
$ |
(0.29 |
) |
|
|
$ |
0.46 |
|
|
158.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core FFO Attributable to Common Stockholders (2) |
$ |
21,090 |
|
|
$ |
18,475 |
|
|
|
$ |
2,615 |
|
|
14.2 |
% |
|
|
Core FFO Attributable to Common Stockholdersper Common Share -
Diluted (2) |
$ |
0.93 |
|
|
$ |
0.82 |
|
|
|
$ |
0.11 |
|
|
13.4 |
% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO Attributable to Common Stockholders (2) |
$ |
22,699 |
|
|
$ |
20,644 |
|
|
|
$ |
2,055 |
|
|
10.0 |
% |
|
|
AFFO Attributable to Common Stockholders perCommon Share - Diluted
(2) |
$ |
1.00 |
|
|
$ |
0.91 |
|
|
|
$ |
0.09 |
|
|
9.9 |
% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends Declared and Paid - Preferred Stock |
$ |
0.80 |
|
|
$ |
0.80 |
|
|
|
$ |
— |
|
|
0.0 |
% |
|
|
Dividends Declared and Paid - Common Stock |
$ |
0.76 |
|
|
$ |
0.76 |
|
|
|
$ |
— |
|
|
0.0 |
% |
|
|
|
|
|
|
(1) |
The denominator
for this measure excludes the impact of 3.6 million and 3.3 million
shares for the six months ended June 30, 2024 and 2023,
respectively, related to the Company’s adoption of ASU 2020-06,
effective January 1, 2022, which requires presentation on an
if-converted basis for 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 Attributable
to Common Stockholders per Common Share - Diluted, Core FFO
Attributable to Common Stockholders, Core FFO Attributable to
Common Stockholders per Common Share - Diluted, AFFO Attributable
to Common Stockholders, and AFFO Attributable to Common
Stockholders per Common Share - Diluted. Further, the weighted
average shares used to compute per share amounts for Core FFO
Attributable to Common Stockholders per Common Share - Diluted and
AFFO Attributable to Common Stockholders per Common Share - Diluted
do not reflect any dilution related to the ultimate settlement of
the 2025 Convertible Senior Notes. |
|
|
|
|
|
Investments
During the three months ended June 30, 2024, the
Company invested $1.5 million into 1.4 acres of land for future
development within the West Broad Village property, which was
previously acquired in October of 2022.
During the six months ended June 30, 2024, the
Company invested $72.5 million into two retail properties totaling
319,066 square feet and one vacant land parcel, and originated one
$10.0 million first mortgage structured investment. These
investments represent a weighted average going-in cash yield of
8.2%.
Dispositions
During the three months ended June 30, 2024, the
Company received proceeds of $15.2 million as an early repayment of
our Sabal Pavilion seller-financing loan.
During the six months ended June 30, 2024, the
Company sold one retail property for $20.0 million at an exit cash
cap rate of 8.2%, generating a gain of $4.6 million.
Portfolio Summary
The Company’s income property portfolio consisted of the
following as of June 30, 2024:
|
Asset Type |
|
# of Properties |
|
Square Feet |
|
Wtd. Avg. RemainingLease Term |
|
|
Single Tenant |
|
6 |
|
252 |
|
5.7 years |
|
|
Multi-Tenant |
|
14 |
|
3,643 |
|
5.0 years |
|
|
Total / Wtd. Avg. |
|
20 |
|
3,895 |
|
4.9 years |
|
|
|
|
|
Square Feet in thousands. |
|
|
|
|
|
Property Type |
|
# of Properties |
|
Square Feet |
|
% of Cash Base Rent |
|
|
Retail |
|
15 |
|
2,467 |
|
62.5 |
% |
|
|
Office |
|
1 |
|
210 |
|
4.5 |
% |
|
|
Mixed-Use |
|
4 |
|
1,218 |
|
33.0 |
% |
|
|
|
|
|
Square Feet in thousands. |
|
|
|
Leased Occupancy |
94.6 |
% |
|
| Occupancy |
92.6 |
% |
|
| |
Same Property Net Operating
Income
During the second quarter of 2024, the Company’s
Same-Property NOI totaled $14.9 million, an increase of 2.0% over
the comparable prior year period, as presented in the following
table:
| |
Three Months Ended |
|
|
|
| |
June 30,2024 |
|
June 30,2023 |
|
Variance to ComparablePeriod in the Prior
Year |
|
|
Single Tenant |
$ |
1,292 |
|
|
$ |
1,191 |
|
|
$ |
101 |
|
|
|
8.5 |
% |
|
|
Multi-Tenant |
|
13,587 |
|
|
|
13,391 |
|
|
|
196 |
|
|
|
1.5 |
% |
|
|
Total |
$ |
14,879 |
|
|
$ |
14,582 |
|
|
$ |
297 |
|
|
|
2.0 |
% |
|
|
|
|
|
$ in thousands. |
|
| |
|
During the six months ended June 30, 2024, the
Company’s Same-Property NOI totaled $30.0 million, an increase of
4.0% over the comparable prior year period, as presented in the
following table:
| |
Six Months Ended |
|
|
|
| |
June 30,2024 |
|
June 30,2023 |
|
Variance to ComparablePeriod in the Prior
Year |
|
|
Single Tenant |
$ |
2,439 |
|
|
$ |
2,140 |
|
|
$ |
299 |
|
|
|
14.0 |
% |
|
|
Multi-Tenant |
|
27,554 |
|
|
|
26,696 |
|
|
|
858 |
|
|
|
3.2 |
% |
|
|
Total |
$ |
29,993 |
|
|
$ |
28,836 |
|
|
$ |
1,157 |
|
|
|
4.0 |
% |
|
|
|
|
|
$ in thousands. |
|
|
|
|
Leasing Activity
During the quarter ended June 30, 2024, the
Company signed 16 leases totaling 78,593 square feet. On a
comparable basis, which excludes vacancy existing at the time of
acquisition, CTO signed 11 leases totaling 57,878 square feet at an
average cash base rent of $23.34 per square foot compared to a
previous average cash base rent of $21.45 per square foot,
representing 8.8% comparable growth.
A summary of the Company’s overall leasing
activity for the quarter ended June 30, 2024, is as follows:
| |
Square Feet |
|
Wtd. Avg.Lease Term |
|
Cash Rent perSquare Foot |
|
TenantImprovements |
|
LeasingCommissions |
|
|
New Leases |
31 |
|
8.1 years |
|
$ |
33.28 |
|
$ |
865 |
|
$ |
515 |
|
|
Renewals & Extensions |
48 |
|
4.0 years |
|
|
21.06 |
|
|
10 |
|
|
57 |
|
|
Total / Wtd. Avg. |
79 |
|
6.0 years |
|
$ |
25.87 |
|
$ |
875 |
|
$ |
572 |
|
| |
|
|
In thousands except for per square foot and weighted average lease
term data. Comparable leases compare leases signed on a space for
which there was previously a tenant. Overall leasing activity does
not include lease termination agreements or lease amendments
related to tenant bankruptcy proceedings. |
|
| |
|
During the six months ended June 30, 2024, the
Company signed 34 leases totaling 182,707 square feet. On a
comparable basis, which excludes vacancy existing at the time of
acquisition, CTO signed 26 leases totaling 152,577 square feet at
an average cash base rent of $25.05 per square foot compared to a
previous average cash base rent of $17.77 per square foot,
representing 41.0% comparable growth.
A summary of the Company’s overall leasing
activity for the six months ended June 30, 2024, is as follows:
|
|
Square Feet |
|
Wtd. Avg.Lease Term |
|
Cash Rent perSquare Foot |
|
TenantImprovements |
|
LeasingCommissions |
|
|
New Leases |
101 |
|
10.9 years |
|
$ |
28.29 |
|
$ |
5,707 |
|
$ |
1,648 |
|
|
Renewals & Extensions |
82 |
|
3.9 years |
|
|
24.48 |
|
|
25 |
|
|
97 |
|
|
Total / Wtd. Avg. |
183 |
|
8.0 years |
|
$ |
26.58 |
|
$ |
5,732 |
|
$ |
1,745 |
|
| |
|
|
In thousands except for per square foot and weighted average lease
term data. Comparable leases compare leases signed on a space for
which there was previously a tenant. Overall leasing activity does
not include lease termination agreements or lease amendments
related to tenant bankruptcy proceedings. |
|
| |
|
Capital Markets and Balance
Sheet
During the quarter ended June 30, 2024, the
Company completed the following notable capital markets
activities:
- Issued 248,960
common shares under its ATM offering program at a weighted average
gross price of $17.62 per share, for total net proceeds of $4.3
million.
- Completed a
follow-on public offering of 1,718,417 shares of the Company’s
6.375% Series A Cumulative Redeemable Preferred Stock. The Company
received net proceeds of $33.1 million, after deducting the
underwriting discount and offering expenses payable by the Company,
which proceeds were used to pay down our Revolving Credit
Facility.
- As of June 30,
2024, the Company has $150 million of undrawn commitments on our
Revolving Credit Facility, and $4.8 million of cash on hand for
total liquidity of $154.8 million.
The following table provides a summary of the
Company’s long-term debt, as of June 30, 2024:
|
|
Component of Long-Term Debt |
|
Principal |
|
Maturity Date |
|
Interest Rate |
|
Wtd. Avg. Rate as of June 30, 2024 |
|
|
2025 Convertible Senior Notes |
|
$ |
51.0 million |
|
April 2025 |
|
3.875% |
|
3.88% |
|
|
2026 Term Loan (1) |
|
|
65.0 million |
|
March 2026 |
|
SOFR + 10 bps +[1.25% - 2.20%] |
|
2.87% |
|
|
Mortgage Note (2) |
|
|
17.8 million |
|
August 2026 |
|
4.060% |
|
4.06% |
|
|
Revolving Credit Facility (3) |
|
|
150.0 million |
|
January 2027 |
|
SOFR + 10 bps +[1.25% - 2.20%] |
|
5.07% |
|
|
2027 Term Loan (4) |
|
|
100.0 million |
|
January 2027 |
|
SOFR + 10 bps +[1.25% - 2.20%] |
|
2.95% |
|
|
2028 Term Loan (5) |
|
|
100.0 million |
|
January 2028 |
|
SOFR + 10 bps +[1.20% - 2.15%] |
|
5.33% |
|
|
Total Long-Term Debt |
|
$ |
483.8 million |
|
|
|
|
|
4.23% |
|
| |
|
|
|
(1) |
The Company utilized interest rate swaps on the $65.0 million 2026
Term Loan balance to fix SOFR and achieve a weighted average fixed
swap rate of 1.27% plus the 10 bps SOFR adjustment plus the
applicable spread. |
|
|
(2) |
Mortgage note assumed in connection with the acquisition of Price
Plaza Shopping Center located in Katy, Texas. |
|
|
(3) |
The Company utilized interest rate swaps on $150.0 million of the
Credit Facility balance to fix SOFR and achieve a weighted average
fixed swap rate of 3.47% plus the 10 bps SOFR adjustment plus the
applicable spread. |
|
|
(4) |
The Company utilized interest rate swaps on the $100.0 million 2027
Term Loan balance to fix SOFR and achieve a fixed swap rate of
1.35% plus the 10 bps SOFR adjustment plus the applicable
spread. |
|
|
(5) |
The Company utilized interest rate swaps on the $100.0 million 2028
Term Loan balance to fix SOFR and achieve a weighted average fixed
swap rate of 3.78% plus the 10 bps SOFR adjustment plus the
applicable spread. |
|
| |
|
|
As of June 30, 2024, the Company’s net debt to
Pro Forma EBITDA was 7.5 times, and as defined in the Company’s
credit agreement, the Company’s fixed charge coverage ratio was 2.7
times. As of June 30, 2024, the Company’s net debt to total
enterprise value was 47.8%. The Company calculates total enterprise
value as the sum of net debt, par value of its 6.375% Series A
preferred equity, and the market value of the Company's outstanding
common shares.
Dividends
On May 28, 2024, the Company announced a cash
dividend on its common stock and Series A Preferred Stock for the
second quarter of 2024 of $0.38 per share and $0.40 per share,
respectively, payable on June 28, 2024 to stockholders of record as
of the close of business on June 13, 2024. The second quarter 2024
common stock cash dividend represents a payout ratio of 84.4% and
79.2% of the Company’s second quarter 2024 Core FFO Attributable to
Common Stockholders per Common Share - Diluted and AFFO
Attributable to Common Stockholders per Common Share - Diluted,
respectively.
2024 Outlook
The Company has increased its Core FFO and AFFO
outlook for 2024 and has revised certain assumptions to take into
account the Company’s year-to-date performance and revised
expectations regarding the Company’s acquisition activities. The
Company’s outlook for 2024 assumes continued stability in economic
activity, stable or positive business trends related to each of our
tenants and other significant assumptions.
The Company’s increased outlook for 2024 is as
follows:
| |
| |
Revised Outlook Range for 2024 |
|
Change from Prior Outlook |
|
| |
Low |
|
High |
|
Low |
|
High |
|
|
Core FFO per Diluted Share |
$ |
1.81 |
to |
$ |
1.86 |
|
$ |
0.21 |
to |
$ |
0.18 |
|
| AFFO per Diluted Share |
$ |
1.95 |
to |
$ |
2.00 |
|
$ |
0.21 |
to |
$ |
0.18 |
|
| |
The Company’s 2024 guidance includes but is not
limited to the following assumptions:
- Same-Property
NOI growth of 2% to 4%, including the known impact of bad debt
expense, occupancy loss and costs associated with tenants in
bankruptcy, and/or tenant lease defaults, and before any impact
from potential 2024 income property acquisitions and/or
dispositions.
- General and
administrative expenses within a range of $15.2 million to $16.2
million.
- Weighted average
diluted shares outstanding of 22.9 million shares.
- Year-end 2024
leased occupancy projected to be within a range of 95% to 96%
before any impact from potential 2024 income property acquisitions
and/or dispositions.
- Investment,
including structured investments, between $200 million and $250
million at a weighted average initial cash yield between 8.50% and
9.00%.
- Disposition of assets between $50
million and $75 million at a weighted average exit cash yield
between 7.50% and 8.25%
Earnings Conference Call &
Webcast
The Company will host a conference call to
present its operating results for the quarter ended June 30, 2024,
on Friday, July 26, 2024, 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 registration link
provided in the event details below and you will be provided with
dial-in details.
Event Details:
|
Webcast: |
https://edge.media-server.com/mmc/p/n6cuxiih |
|
Registration: |
https://register.vevent.com/register/BI83b768fbc540495da856dfd974c470c9 |
|
|
We encourage participants to register and 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, distress in the banking
sector, global supply chain disruptions, and ongoing geopolitical
war; credit risk associated with the Company investing in
structured investments; 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, 2023 and
other risks and uncertainties discussed from time to time in the
Company’s filings with the U.S. Securities and Exchange
Commission.
There can be no assurance that future
developments will be in accordance with management’s expectations
or that the effect of future developments on the Company will be
those anticipated by management. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date of this press release. The Company undertakes
no obligation to update the information contained in this press
release to reflect subsequently occurring events or
circumstances.
Non-GAAP Financial Measures
Our reported results are presented in accordance
with accounting principles generally accepted in the United States
of America (“GAAP”). We also disclose Funds From Operations
(“FFO”), Core Funds From Operations (“Core FFO”), 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 real estate related depreciation and
amortization, as well as extraordinary items (as defined by GAAP)
such as net gain or loss from sales of depreciable real estate
assets, impairment write-downs associated with depreciable real
estate assets and impairments associated with the implementation of
current expected credit losses on commercial loans and investments
at the time of origination, 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, subsurface sales, investment securities, 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, as well as adding back the
interest related to the 2025 Convertible Senior Notes, if the
effect is dilutive. 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. 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 real estate
related depreciation and amortization, as well as extraordinary
items (as defined by GAAP) such as net gain or loss from sales of
depreciable real estate assets, impairment write-downs associated
with depreciable real estate assets, impairments associated with
the implementation of current expected credit losses on commercial
loans and investments at the time of origination, 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,
other non-recurring items such as termination fees, forfeitures of
tenant security deposits, and certain adjustments to reconciliation
estimates related to reimbursable revenue for recently acquired
properties, and other non-cash income or expense. 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, subsurface sales, investment securities, and
land sales, in addition to the mark-to-market of the Company’s
investment securities. 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 real estate
related depreciation and amortization, as well as extraordinary
items (as defined by GAAP) such as net gain or loss from sales of
depreciable real estate assets, impairment write-downs associated
with depreciable real estate assets, impairments associated with
the implementation of current expected credit losses on commercial
loans and investments at the time of origination, 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,
other non-recurring items such as termination fees, forfeitures of
tenant security deposits, and certain adjustments to reconciliation
estimates related to reimbursable revenue for recently acquired
properties, and other non-cash income or expense. Interest expense,
general and administrative expenses, investment and other income or
loss, income tax benefit or expense, real estate operations
revenues and direct cost of revenues, management fee income, and
interest income from commercial loans and investments are also
excluded from Same-Property NOI. GAAP net income or loss is further
adjusted to remove the impact of properties that were not owned for
the full current and prior year reporting periods presented. Cash
rental income received under the leases pertaining to the Company’s
assets that are presented as commercial loans and investments in
accordance with GAAP is also used in lieu of the interest income
equivalent.
FFO is used by management, investors and
analysts to facilitate meaningful comparisons of operating
performance between periods and among our peers primarily because
it excludes the effect of real estate depreciation and amortization
and net gains or losses on sales, which are based on historical
costs and implicitly assume that the value 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.
|
CTO Realty Growth, Inc.Consolidated
Balance Sheets(In thousands, except share
and per share data) |
|
| |
|
| |
As of |
|
|
|
(Unaudited) June 30, 2024 |
|
December 31,2023 |
|
|
ASSETS |
|
|
|
|
|
|
|
|
| Real
Estate: |
|
|
|
|
|
|
|
|
|
Land, at Cost |
$ |
236,207 |
|
|
$ |
222,232 |
|
|
|
Building and Improvements, at Cost |
|
601,584 |
|
|
|
559,389 |
|
|
|
Other Furnishings and Equipment, at Cost |
|
872 |
|
|
|
857 |
|
|
|
Construction in Process, at Cost |
|
4,824 |
|
|
|
3,997 |
|
|
|
Total Real Estate, at Cost |
|
843,487 |
|
|
|
786,475 |
|
|
|
Less, Accumulated Depreciation |
|
(63,547 |
) |
|
|
(52,012 |
) |
|
|
Real Estate—Net |
|
779,940 |
|
|
|
734,463 |
|
|
| Land and
Development Costs |
|
300 |
|
|
|
731 |
|
|
|
Intangible Lease Assets—Net |
|
95,054 |
|
|
|
97,109 |
|
|
|
Investment in Alpine Income Property Trust, Inc. |
|
36,561 |
|
|
|
39,445 |
|
|
|
Mitigation Credits |
|
355 |
|
|
|
1,044 |
|
|
|
Commercial Loans and Investments |
|
50,323 |
|
|
|
61,849 |
|
|
| Cash and
Cash Equivalents |
|
4,794 |
|
|
|
10,214 |
|
|
|
Restricted Cash |
|
1,363 |
|
|
|
7,605 |
|
|
|
Refundable Income Taxes |
|
85 |
|
|
|
246 |
|
|
| Deferred
Income Taxes—Net |
|
2,147 |
|
|
|
2,009 |
|
|
| Other
Assets |
|
38,846 |
|
|
|
34,953 |
|
|
|
Total Assets |
$ |
1,009,768 |
|
|
$ |
989,668 |
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
Accounts Payable |
$ |
1,787 |
|
|
$ |
2,758 |
|
|
|
Accrued and Other Liabilities |
|
14,713 |
|
|
|
18,373 |
|
|
|
Deferred Revenue |
|
5,371 |
|
|
|
5,200 |
|
|
|
Intangible Lease Liabilities—Net |
|
13,421 |
|
|
|
10,441 |
|
|
|
Long-Term Debt |
|
482,661 |
|
|
|
495,370 |
|
|
|
Total Liabilities |
|
517,953 |
|
|
|
532,142 |
|
|
|
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
ShareLiquidation Preference, 4,697,225 shares issued and
outstanding at June 30,2024 and 2,978,808 shares issued and
outstanding at December 31, 2023 |
|
47 |
|
|
|
30 |
|
|
|
Common Stock – 500,000,000 shares authorized; $0.01 par value,
23,115,110shares issued and outstanding at June 30, 2024 and
22,643,034 shares issuedand outstanding at December 31,
2023 |
|
231 |
|
|
|
226 |
|
|
|
Additional Paid-In Capital |
|
207,882 |
|
|
|
168,435 |
|
|
|
Retained Earnings |
|
268,269 |
|
|
|
281,944 |
|
|
|
Accumulated Other Comprehensive Income |
|
15,386 |
|
|
|
6,891 |
|
|
|
Total Stockholders’ Equity |
|
491,815 |
|
|
|
457,526 |
|
|
|
Total Liabilities and Stockholders’ Equity |
$ |
1,009,768 |
|
|
$ |
989,668 |
|
|
|
|
|
|
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 30,2024 |
|
|
June 30,2023 |
|
|
June 30,2024 |
|
|
June 30,2023 |
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Properties |
$ |
25,878 |
|
|
$ |
22,758 |
|
|
$ |
50,501 |
|
|
$ |
45,190 |
|
|
|
Management Fee Income |
|
1,131 |
|
|
|
1,102 |
|
|
|
2,236 |
|
|
|
2,200 |
|
|
|
Interest Income From Commercial Loans andInvestments |
|
1,441 |
|
|
|
1,056 |
|
|
|
2,792 |
|
|
|
1,851 |
|
|
|
Real Estate Operations |
|
395 |
|
|
|
1,131 |
|
|
|
1,443 |
|
|
|
1,523 |
|
|
|
Total Revenues |
|
28,845 |
|
|
|
26,047 |
|
|
|
56,972 |
|
|
|
50,764 |
|
|
| Direct
Cost of Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Properties |
|
(8,080 |
) |
|
|
(6,670 |
) |
|
|
(14,833 |
) |
|
|
(13,823 |
) |
|
|
Real Estate Operations |
|
(259 |
) |
|
|
(639 |
) |
|
|
(1,078 |
) |
|
|
(724 |
) |
|
|
Total Direct Cost of Revenues |
|
(8,339 |
) |
|
|
(7,309 |
) |
|
|
(15,911 |
) |
|
|
(14,547 |
) |
|
| General
and Administrative Expenses |
|
(3,459 |
) |
|
|
(3,327 |
) |
|
|
(7,675 |
) |
|
|
(7,054 |
) |
|
|
Provision for Impairment |
|
(67 |
) |
|
|
— |
|
|
|
(115 |
) |
|
|
(479 |
) |
|
|
Depreciation and Amortization |
|
(11,549 |
) |
|
|
(10,829 |
) |
|
|
(22,480 |
) |
|
|
(21,145 |
) |
|
|
Total Operating Expenses |
|
(23,414 |
) |
|
|
(21,465 |
) |
|
|
(46,181 |
) |
|
|
(43,225 |
) |
|
| Gain on
Disposition of Assets |
|
— |
|
|
|
1,101 |
|
|
|
9,163 |
|
|
|
1,101 |
|
|
|
Other Gain |
|
— |
|
|
|
1,101 |
|
|
|
9,163 |
|
|
|
1,101 |
|
|
|
Total Operating Income |
|
5,431 |
|
|
|
5,683 |
|
|
|
19,954 |
|
|
|
8,640 |
|
|
|
Investment and Other Income (Loss) |
|
1,429 |
|
|
|
1,811 |
|
|
|
(1,830 |
) |
|
|
(2,480 |
) |
|
| Interest
Expense |
|
(5,604 |
) |
|
|
(5,211 |
) |
|
|
(11,133 |
) |
|
|
(9,843 |
) |
|
|
Income Before Income Tax Benefit (Expense) |
|
1,256 |
|
|
|
2,283 |
|
|
|
6,991 |
|
|
|
(3,683 |
) |
|
| Income
Tax Benefit (Expense) |
|
(73 |
) |
|
|
(483 |
) |
|
|
34 |
|
|
|
(510 |
) |
|
|
Net Income (Loss) Attributable to the Company |
|
1,183 |
|
|
|
1,800 |
|
|
|
7,025 |
|
|
|
(4,193 |
) |
|
|
Distributions to Preferred Stockholders |
|
(1,871 |
) |
|
|
(1,195 |
) |
|
|
(3,058 |
) |
|
|
(2,390 |
) |
|
|
Net Income (Loss) Attributable to CommonStockholders |
$ |
(688 |
) |
|
$ |
605 |
|
|
$ |
3,967 |
|
|
$ |
(6,583 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Per
Share Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted Net Income (Loss) Attributableto Common
Stockholders |
$ |
(0.03 |
) |
|
|
0.03 |
|
|
|
0.17 |
|
|
|
(0.29 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted
Average Number of Common Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
22,787,252 |
|
|
|
22,482,957 |
|
|
|
22,669,246 |
|
|
|
22,593,280 |
|
|
|
Diluted |
|
22,828,148 |
|
|
|
22,482,957 |
|
|
|
22,674,796 |
|
|
|
22,593,280 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends Declared and Paid - Preferred Stock |
$ |
0.40 |
|
|
$ |
0.40 |
|
|
$ |
0.80 |
|
|
$ |
0.80 |
|
|
|
Dividends Declared and Paid - Common Stock |
$ |
0.38 |
|
|
$ |
0.38 |
|
|
$ |
0.76 |
|
|
$ |
0.76 |
|
|
|
|
|
|
CTO Realty Growth, Inc.Non-GAAP Financial
MeasuresSame-Property NOI
Reconciliation(Unaudited)(In thousands) |
|
| |
|
| |
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
June 30,2024 |
|
June 30,2023 |
|
June 30,2024 |
|
June 30,2023 |
|
|
Net Income (Loss) Attributable to the Company |
$ |
1,183 |
|
|
$ |
1,800 |
|
|
$ |
7,025 |
|
|
$ |
(4,193 |
) |
|
|
|
Gain on Disposition of Assets, Net of Tax |
|
— |
|
|
|
(1,101 |
) |
|
|
(9,163 |
) |
|
|
(1,101 |
) |
|
|
|
Provision for Impairment |
|
67 |
|
|
|
— |
|
|
|
115 |
|
|
|
479 |
|
|
|
|
Depreciation and Amortization |
|
11,549 |
|
|
|
10,829 |
|
|
|
22,480 |
|
|
|
21,145 |
|
|
|
|
Amortization of Intangibles to Lease Income |
|
(244 |
) |
|
|
(627 |
) |
|
|
(718 |
) |
|
|
(1,306 |
) |
|
|
|
Straight-Line Rent Adjustment |
|
346 |
|
|
|
(122 |
) |
|
|
1,039 |
|
|
|
129 |
|
|
|
|
COVID-19
Rent Repayments |
|
— |
|
|
|
(17 |
) |
|
|
— |
|
|
|
(43 |
) |
|
|
|
Accretion of Tenant Contribution |
|
13 |
|
|
|
38 |
|
|
|
26 |
|
|
|
76 |
|
|
|
|
Interest
Expense |
|
5,604 |
|
|
|
5,211 |
|
|
|
11,133 |
|
|
|
9,843 |
|
|
|
|
General
and Administrative Expenses |
|
3,459 |
|
|
|
3,327 |
|
|
|
7,675 |
|
|
|
7,054 |
|
|
|
|
Investment and Other Income (Loss) |
|
(1,429 |
) |
|
|
(1,811 |
) |
|
|
1,830 |
|
|
|
2,480 |
|
|
|
|
Income
Tax Benefit (Expense) |
|
73 |
|
|
|
483 |
|
|
|
(34 |
) |
|
|
510 |
|
|
|
|
Real
Estate Operations Revenues |
|
(395 |
) |
|
|
(1,131 |
) |
|
|
(1,443 |
) |
|
|
(1,523 |
) |
|
|
|
Real
Estate Operations Direct Cost of Revenues |
|
259 |
|
|
|
639 |
|
|
|
1,078 |
|
|
|
724 |
|
|
|
|
Management Fee Income |
|
(1,131 |
) |
|
|
(1,102 |
) |
|
|
(2,236 |
) |
|
|
(2,200 |
) |
|
|
|
Interest
Income From Commercial Loans and Investments |
|
(1,441 |
) |
|
|
(1,056 |
) |
|
|
(2,792 |
) |
|
|
(1,851 |
) |
|
|
|
Other
Non-Recurring Items (1) |
|
(303 |
) |
|
|
— |
|
|
|
(553 |
) |
|
|
— |
|
|
|
|
Less:
Impact of Properties Not Owned for the Full Reporting Period |
|
(2,731 |
) |
|
|
(778 |
) |
|
|
(5,469 |
) |
|
|
(1,387 |
) |
|
| Same-Property
NOI |
$ |
14,879 |
|
|
$ |
14,582 |
|
|
$ |
29,993 |
|
|
$ |
28,836 |
|
|
| |
|
|
(1) |
Includes non-recurring items including termination fees,
forfeitures of tenant security deposits, and certain adjustments to
estimates related to recently acquired property CAM
reconciliations. |
|
|
|
|
|
|
CTO Realty Growth, Inc.Non-GAAP Financial
MeasuresFunds from Operations, Core Funds from
Operations, and Adjusted Funds from
OperationsAttributable to Common
Stockholders(Unaudited)(In thousands, except per share
data) |
|
|
|
|
|
| |
|
Three MonthsEnded |
|
Six MonthsEnded |
|
|
|
|
June 30,2024 |
|
June 30,2023 |
|
June 30,2024 |
|
June 30,2023 |
|
|
Net Income (Loss) Attributable to the Company |
$ |
1,183 |
|
|
$ |
1,800 |
|
|
$ |
7,025 |
|
|
$ |
(4,193 |
) |
|
|
|
Add Back: Effect of Dilutive Interest Related to 2025 Notes
(1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
Net Income (Loss) Attributable to the Company, If-Converted |
$ |
1,183 |
|
|
$ |
1,800 |
|
|
$ |
7,025 |
|
|
$ |
(4,193 |
) |
|
|
|
Depreciation and Amortization of Real Estate |
|
11,532 |
|
|
|
10,816 |
|
|
|
22,447 |
|
|
|
21,118 |
|
|
|
|
Gain on
Disposition of Assets, Net of Tax |
|
— |
|
|
|
(824 |
) |
|
|
(9,163 |
) |
|
|
(824 |
) |
|
|
|
Gain on
Disposition of Other Assets |
|
(139 |
) |
|
|
(490 |
) |
|
|
(370 |
) |
|
|
(813 |
) |
|
|
|
Provision for Impairment |
|
67 |
|
|
|
— |
|
|
|
115 |
|
|
|
479 |
|
|
|
|
Realized
and Unrealized Loss (Gain) on Investment Securities |
|
(663 |
) |
|
|
1,174 |
|
|
|
3,376 |
|
|
|
6,092 |
|
|
|
|
Extinguishment of Contingent Obligation |
|
— |
|
|
|
(2,300 |
) |
|
|
— |
|
|
|
(2,300 |
) |
|
|
Funds from Operations |
$ |
11,980 |
|
|
$ |
10,176 |
|
|
$ |
23,430 |
|
|
$ |
19,559 |
|
|
|
|
Distributions to Preferred Stockholders |
|
(1,871 |
) |
|
|
(1,195 |
) |
|
|
(3,058 |
) |
|
|
(2,390 |
) |
|
|
Funds From Operations Attributable to Common Stockholders |
$ |
10,109 |
|
|
$ |
8,981 |
|
|
$ |
20,372 |
|
|
$ |
17,169 |
|
|
|
|
Amortization of Intangibles to Lease Income |
|
244 |
|
|
|
627 |
|
|
|
718 |
|
|
|
1,306 |
|
|
|
|
Less:
Effect of Dilutive Interest Related to 2025 Notes (1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
Core Funds From Operations Attributable to Common Stockholders |
$ |
10,353 |
|
|
$ |
9,608 |
|
|
$ |
21,090 |
|
|
$ |
18,475 |
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Straight-Line Rent Adjustment |
|
(346 |
) |
|
|
122 |
|
|
|
(1,039 |
) |
|
|
(129 |
) |
|
|
|
COVID-19
Rent Repayments |
|
— |
|
|
|
17 |
|
|
|
— |
|
|
|
43 |
|
|
|
|
Other
Depreciation and Amortization |
|
(3 |
) |
|
|
(57 |
) |
|
|
(7 |
) |
|
|
(116 |
) |
|
|
|
Amortization of Loan Costs, Discount on Convertible Debt,
andCapitalized Interest |
|
297 |
|
|
|
229 |
|
|
|
518 |
|
|
|
437 |
|
|
|
|
Non-Cash
Compensation |
|
750 |
|
|
|
862 |
|
|
|
2,137 |
|
|
|
1,934 |
|
|
| Adjusted Funds
From Operations Attributable to Common Stockholders |
$ |
11,051 |
|
|
$ |
10,781 |
|
|
$ |
22,699 |
|
|
$ |
20,644 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO
Attributable to Common Stockholders per Common Share -
Diluted(1) |
$ |
0.44 |
|
|
$ |
0.40 |
|
|
$ |
0.90 |
|
|
$ |
0.76 |
|
|
|
|
Core FFO
Attributable to Common Stockholders per Common Share -Diluted
(1) |
$ |
0.45 |
|
|
$ |
0.43 |
|
|
$ |
0.93 |
|
|
$ |
0.82 |
|
|
|
|
AFFO
Attributable to Common Stockholders per Common Share -
Diluted(1) |
$ |
0.48 |
|
|
$ |
0.48 |
|
|
$ |
1.00 |
|
|
$ |
0.91 |
|
|
|
|
|
|
|
(1) |
For the three and six months ended June 30, 2024 and 2023, interest
related to the 2025 Convertible Senior Notes was excluded from net
income (loss) attributable to the Company to derive FFO, as the
impact to net income (loss) attributable to common stockholders
would be anti-dilutive. Further, the weighted average shares used
to compute per share amounts for FFO Attributable to Common
Stockholders per Common Share – Diluted, Core FFO Attributable to
Common Stockholders per Common Share - Diluted, and AFFO
Attributable to Common Stockholders per Common Share - Diluted do
not reflect any dilution related to the ultimate settlement of the
2025 Convertible Senior Notes. |
|
|
|
|
|
|
CTO Realty Growth, Inc.Non-GAAP Financial
MeasuresReconciliation of Net Debt to Pro Forma
EBITDA(Unaudited)(In thousands) |
|
| |
|
|
|
|
Three Months EndedJune 30, 2024 |
|
| Net Income
Attributable to the Company |
$ |
1,183 |
|
|
|
|
Depreciation and Amortization of Real Estate |
|
11,532 |
|
|
|
|
Gain on
Disposition of Other Assets |
|
(139 |
) |
|
|
|
Provision for Impairment |
|
67 |
|
|
|
|
Unrealized Gain on Investment Securities |
|
(663 |
) |
|
|
|
Distributions to Preferred Stockholders |
|
(1,871 |
) |
|
|
|
Amortization of Intangibles to Lease Income |
|
244 |
|
|
|
|
Straight-Line Rent Adjustment |
|
(346 |
) |
|
|
|
Other
Depreciation and Amortization |
|
(3 |
) |
|
|
|
Amortization of Loan Costs, Discount on Convertible Debt, and
Capitalized Interest |
|
297 |
|
|
|
|
Non-Cash
Compensation |
|
750 |
|
|
|
|
Other
Non-Recurring Items (1) |
|
(303 |
) |
|
|
|
Interest
Expense, Net of Amortization of Loan Costs and Discount on
ConvertibleDebt |
|
5,308 |
|
|
| EBITDA |
$ |
16,056 |
|
|
|
|
|
|
|
|
|
| Annualized
EBITDA |
$ |
64,224 |
|
|
|
|
Pro
Forma Annualized Impact of Current Quarter Investments and
Dispositions, Net(2) |
|
(244 |
) |
|
| Pro Forma
EBITDA |
$ |
63,980 |
|
|
| |
|
|
|
|
|
| Total Long-Term
Debt |
$ |
482,661 |
|
|
|
|
Financing Costs, Net of Accumulated Amortization |
|
1,048 |
|
|
|
|
Unamortized Convertible Debt Discount |
|
125 |
|
|
|
|
Cash and
Cash Equivalents |
|
(4,794 |
) |
|
| Net Debt |
$ |
479,040 |
|
|
| |
|
|
|
|
|
|
|
Net Debt
to Pro Forma EBITDA |
|
7.5 |
x |
|
| |
|
|
(1) |
Includes non-recurring items including termination fees,
forfeitures of tenant security deposits, and certain adjustments to
estimates related to recently acquired property CAM
reconciliations. |
|
|
(2) |
Reflects the pro forma annualized impact on Annualized EBITDA of
the Company’s investments and disposition activity during the three
months ended June 30, 2024. |
|
| |
|
|
|
Contact: |
Philip R. Mays |
|
|
Senior Vice President, Chief Financial Officer & Treasurer |
|
|
(407) 904-3324 |
|
|
pmays@ctoreit.com |
CTO Realty Growth (NYSE:CTO)
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From Nov 2024 to Dec 2024
CTO Realty Growth (NYSE:CTO)
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From Dec 2023 to Dec 2024
