CTO Realty Growth, Inc. (NYSE: CTO) (the “Company” or “CTO”) today
announced its operating results and earnings for the quarter and
year ended December 31, 2024.
“2024 was an outstanding year for the Company.
We closed $331 million of investments at a weighted average yield
of 9.3% and produced record high Core FFO of $1.88 per share,”
stated John P. Albright, President and Chief Executive Officer of
CTO Realty Growth. “We also opportunistically raised capital ending
the year with $222 million of liquidity to support future growth
and our current signed-not-open leasing pipeline is over $5
million.”
Select Fourth Quarter 2024
Highlights
- Net Loss per
diluted share attributable to common stockholders of $(0.56).
- Core Funds from
Operations (“Core FFO”) of $0.46 per diluted share attributable to
common stockholders.
- Adjusted Funds
from Operations (“AFFO”) of $0.49 per diluted share attributable to
common stockholders.
- Raised net
proceeds of $33.0 million under the Company’s common stock ATM
offering program.
- Investments totaled $57.0 million,
including property acquisitions and structured investments, at a
weighted average initial yield of 10.2%.
Select Full Year 2024
Highlights
- Net Loss per
diluted share attributable to common stockholders of $(0.35).
- Core FFO of
$1.88 per diluted share attributable to common stockholders.
- AFFO of $2.00
per diluted share attributable to common stockholders.
- Raised net
proceeds of $165.2 million under the Company’s common stock ATM
offering program.
- Investments
totaled $330.8 million, including property acquisitions and
structured investments, at a weighted average initial cash yield of
9.3%.
- Sold two
properties for $38.0 million at a weighted average exit cash cap
rate of 8.7%.
- Same-Property
NOI totaled $60.4 million, an increase of 4.0% from the comparable
prior period.
- Signed 70 leases
totaling over 452,000 square feet with a weighted average lease
term of 8.4 years. For comparable leases, increased average cash
base rent to $23.36 per square foot, an increase of 23.0%.
- As of today,
February 20, 2025, signed-not-open pipeline represents $5.2
million, or 5.7%, of annual cash base rent in place as of December
31, 2024.
Quarterly Financial Results
Highlights
The table below provides a summary of the
Company’s operating results for the three months ended December 31,
2024:
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|
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|
| |
|
Three Months Ended |
|
|
|
|
| (in thousands, except per
share data) |
|
December 31, 2024 |
|
December 31, 2023 |
|
Variance to Comparable Period in the Prior
Year |
|
Net Income (Loss) Attributable to the Company |
|
$ |
(15,217 |
) |
|
$ |
7,037 |
|
$ |
(22,254 |
) |
|
(316.2 |
)% |
| Net Income (Loss) Attributable to
Common Stockholders |
|
$ |
(17,095 |
) |
|
$ |
5,850 |
|
$ |
(22,945 |
) |
|
(392.2 |
)% |
| Net Income (Loss) Attributable to
Common Stockholders per Common Share - Diluted (1) |
|
$ |
(0.56 |
) |
|
$ |
0.25 |
|
$ |
(0.81 |
) |
|
(324.0 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Core FFO Attributable to Common
Stockholders (2) |
|
$ |
14,152 |
|
|
$ |
10,846 |
|
$ |
3,306 |
|
|
30.5 |
% |
| Core FFO Attributable to Common
Stockholders per Common Share - Diluted (2) |
|
$ |
0.46 |
|
|
$ |
0.48 |
|
$ |
(0.02 |
) |
|
(4.2 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
| AFFO Attributable to Common
Stockholders (2) |
|
$ |
14,933 |
|
|
$ |
11,663 |
|
$ |
3,270 |
|
|
28.0 |
% |
| AFFO Attributable to Common
Stockholders per Common Share - Diluted (2) |
|
$ |
0.49 |
|
|
$ |
0.52 |
|
$ |
(0.03 |
) |
|
(5.8 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Dividends Declared and Paid -
Preferred Stock |
|
$ |
0.40 |
|
|
$ |
0.40 |
|
$ |
— |
|
|
0.0 |
% |
| Dividends Declared and Paid -
Common Stock |
|
$ |
0.38 |
|
|
$ |
0.38 |
|
$ |
— |
|
|
0.0 |
% |
| |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
For the three months ended December 31, 2024, the denominator for
this measure excludes the impact of 3.7 million shares, related to
the Company’s adoption of ASU 2020-06, which requires presentation
on an if-converted basis for the Company’s 2025 Convertible Senior
Notes, as the impact would be anti-dilutive. For the three months
ended December 31, 2023, the denominator for this measure includes
the impact of 3.4 million shares, as the impact was dilutive for
the period. |
| (2) |
See the “Non-GAAP Financial
Measures” section and tables at the end of this press release for a
discussion and reconciliation of Net Income Attributable to the
Company to non-GAAP financial measures, including FFO Attributable
to Common Stockholders, FFO Attributable to Common Stockholders per
Common Share - Diluted, Core FFO Attributable to Common
Stockholders, Core FFO Attributable to Common Stockholders per
Common Share - Diluted, AFFO Attributable to Common Stockholders,
and AFFO Attributable to Common Stockholders per Common Share -
Diluted. Further, the weighted average shares used to compute per
share amounts for Core FFO Attributable to Common Stockholders per
Common Share - Diluted and AFFO Attributable to Common Stockholders
per Common Share - Diluted do not reflect any dilution related to
the ultimate settlement of the 2025 Convertible Senior Notes. |
| |
|
Year-to-Date Financial Results
Highlights
The table below provides a summary of the
Company’s operating results for the year ended December 31,
2024:
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|
|
|
|
|
|
|
|
| |
|
Year Ended |
|
|
|
|
| (in thousands, except per
share data) |
|
December 31, 2024 |
|
December 31, 2023 |
|
Variance to Comparable Period in the Prior
Year |
|
Net Income (Loss) Attributable to the Company |
|
$ |
(1,965 |
) |
|
$ |
5,530 |
|
$ |
(7,495 |
) |
|
(135.5 |
)% |
| Net Income (Loss) Attributable to
Common Stockholders |
|
$ |
(8,779 |
) |
|
$ |
758 |
|
$ |
(9,537 |
) |
|
(1258.2 |
)% |
| Net Income (Loss) Attributable to
Common Stockholders per Common Share - Diluted (1) |
|
$ |
(0.35 |
) |
|
$ |
0.03 |
|
$ |
(0.38 |
) |
|
(1266.7 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Core FFO Attributable to Common
Stockholders (2) |
|
$ |
47,875 |
|
|
$ |
39,783 |
|
$ |
8,092 |
|
|
20.3 |
% |
| Core FFO Attributable to Common
Stockholders per Common Share - Diluted (2) |
|
$ |
1.88 |
|
|
$ |
1.77 |
|
$ |
0.11 |
|
|
6.2 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
| AFFO Attributable to Common
Stockholders (2) |
|
$ |
50,773 |
|
|
$ |
43,073 |
|
$ |
7,700 |
|
|
17.9 |
% |
| AFFO Attributable to Common
Stockholders per Common Share - Diluted (2) |
|
$ |
2.00 |
|
|
$ |
1.91 |
|
$ |
0.09 |
|
|
4.7 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Dividends Declared and Paid -
Preferred Stock |
|
$ |
1.59 |
|
|
$ |
1.59 |
|
$ |
— |
|
|
0.0 |
% |
| Dividends Declared and Paid -
Common Stock |
|
$ |
1.52 |
|
|
$ |
1.52 |
|
$ |
— |
|
|
0.0 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
The denominator for this measure excludes the impact of 3.6 million
and 3.3 million shares for the year ended December 31, 2024 and
2023, respectively, related to the Company’s adoption of ASU
2020-06, which requires presentation on an if-converted basis for
the Company’s 2025 Convertible Senior Notes, as the impact would be
anti-dilutive. |
| (2) |
See the “Non-GAAP Financial
Measures” section and tables at the end of this press release for a
discussion and reconciliation of Net Income (Loss) Attributable to
the Company to non-GAAP financial measures, including FFO
Attributable to Common Stockholders, FFO Attributable to Common
Stockholders per Common Share - Diluted, Core FFO Attributable to
Common Stockholders, Core FFO Attributable to Common Stockholders
per Common Share - Diluted, AFFO Attributable to Common
Stockholders, and AFFO Attributable to Common Stockholders per
Common Share - Diluted. Further, the weighted average shares used
to compute per share amounts for Core FFO Attributable to Common
Stockholders per Common Share - Diluted and AFFO Attributable to
Common Stockholders per Common Share - Diluted do not reflect any
dilution related to the ultimate settlement of the 2025 Convertible
Senior Notes. |
| |
|
Investments
During the three months ended December 31, 2024,
the Company invested $57.0 million, at a weighted average initial
cash yield of 10.2% inclusive of:
- A 74,000 square
foot, Publix-anchored shopping center at a purchase price of $16.8
million located in Dunedin Florida, a submarket of Tampa.
- Origination of a
$40.2 million first mortgage loan, of which $4.1 million was funded
as of December 31, 2024, with an initial term of 30 months and an
initial fixed interest rate of 12.15%. The loan is for the
development of an approximately 80,000 square foot retail center on
approximately 35 acres located in Forsyth County, Georgia, a
growing and affluent suburb of Atlanta. The development is anchored
by a 35,500 square foot Whole Foods Market with the remainder of
the development consisting of small shop space and pad sites.
During the year ended December 31, 2024, the
Company invested an aggregate of $330.8 million, including six
retail properties totaling 1.3 million square feet and one vacant
land parcel for $226.8 million and the origination of three first
mortgage structured investments for $94.0 million, and invested
$10.0 million in a preferred equity investment in a subsidiary of a
publicly-traded hospitality, entertainment and real estate company.
These investments represent a weighted average initial cash yield
of 9.3%.
Dispositions
During the year ended December 31, 2024, the
Company sold two retail properties for $38.0 million at a weighted
average exit cash cap rate of 8.7%, generating aggregate gains of
$3.8 million.
Portfolio Summary
The Company’s income property portfolio consisted of the
following as of December 31, 2024:
|
|
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|
|
| |
|
|
|
|
|
Wtd. Avg. Remaining |
|
Asset Type |
|
# of Properties |
|
Square Feet |
|
Lease Term |
| Single Tenant |
|
6 |
|
252 |
|
5.2 years |
| Multi-Tenant |
|
17 |
|
4,435 |
|
4.8 years |
| Total / Wtd. Avg. |
|
23 |
|
4,687 |
|
4.8 years |
| Square Feet in thousands. |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Property Type |
|
# of Properties |
|
Square Feet |
|
% of Cash Base Rent |
|
Retail |
|
18 |
|
3,258 |
|
66.4 |
% |
| Office |
|
1 |
|
210 |
|
4.1 |
% |
| Mixed-Use |
|
4 |
|
1,219 |
|
29.5 |
% |
| Total |
|
23 |
|
4,687 |
|
100.0 |
% |
| Square Feet in thousands. |
|
|
|
|
|
|
| |
|
|
|
Leased Occupancy |
|
93.4 |
% |
| Occupancy |
|
90.3 |
% |
| |
|
|
|
Same Property Net Operating
Income
During each of the three month periods ended
December 31, 2024 and 2023, the Company’s Same-Property NOI totaled
$17.1 million, as presented in the following table:
| |
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|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
|
|
| |
|
December 31, 2024 |
|
December 31, 2023 |
|
Variance to Comparable Period in the Prior
Year |
|
Single Tenant |
|
$ |
1,974 |
|
$ |
2,168 |
|
$ |
(194 |
) |
|
(8.9 |
)% |
| Multi-Tenant |
|
|
15,129 |
|
|
14,931 |
|
|
198 |
|
|
1.3 |
% |
| Total |
|
$ |
17,103 |
|
$ |
17,099 |
|
$ |
4 |
|
|
0.0 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ in thousands.
During the year ended December 31, 2024, the
Company’s Same-Property NOI totaled $60.4 million, an increase of
4.0% over the year ended December 31, 2023, as presented in the
following table:
| |
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|
|
|
|
|
|
| |
|
Twelve Months Ended |
|
|
|
|
| |
|
December 31, 2024 |
|
December 31, 2023 |
|
Variance to Comparable Period in the Prior
Year |
|
Single Tenant |
|
$ |
5,752 |
|
$ |
5,673 |
|
$ |
79 |
|
1.4 |
% |
| Multi-Tenant |
|
|
54,689 |
|
|
52,450 |
|
|
2,239 |
|
4.3 |
% |
| Total |
|
$ |
60,441 |
|
$ |
58,123 |
|
$ |
2,318 |
|
4.0 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
$ in thousands.
Leasing Activity
During the quarter ended December 31, 2024, the
Company signed 16 leases totaling 67,788 square feet. On a
comparable basis, which excludes vacancy existing at the time of
acquisition, CTO signed 10 leases totaling 52,134 square feet at an
average cash base rent of $22.70 per square foot compared to a
previous average cash base rent of $21.06 per square foot,
representing 7.8% comparable growth.
A summary of the Company’s overall leasing
activity for the quarter ended December 31, 2024, is as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Wtd. Avg. |
|
Cash Rent per |
|
Tenant |
|
Leasing |
| |
|
Square Feet |
|
Lease Term |
|
Square Foot |
|
Improvements |
|
Commissions |
| New Leases |
|
20 |
|
8.7 years |
|
$ |
36.90 |
|
$ |
763 |
|
$ |
486 |
| Renewals & Extensions |
|
48 |
|
4.7 years |
|
|
21.32 |
|
|
— |
|
|
10 |
| Total / Wtd. Avg. |
|
68 |
|
6.4 years |
|
$ |
25.90 |
|
$ |
763 |
|
$ |
496 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
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 year ended December 31, 2024, the
Company signed 70 leases totaling 452,301 square feet. On a
comparable basis, which excludes vacancy existing at the time of
acquisition, CTO signed 52 leases totaling 352,359 square feet at
an average cash base rent of $23.36 per square foot compared to a
previous average cash base rent of $18.99 per square foot,
representing 23.0% comparable growth.
A summary of the Company’s overall leasing
activity for the year ended December 31, 2024, is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Wtd. Avg. |
|
Cash Rent per |
|
Tenant |
|
Leasing |
| |
|
Square Feet |
|
Lease Term |
|
Square Foot |
|
Improvements |
|
Commissions |
| New Leases |
|
201 |
|
10.0 years |
|
$ |
28.22 |
|
$ |
8,127 |
|
$ |
3,407 |
| Renewals & Extensions |
|
251 |
|
3.1 years |
|
|
20.76 |
|
|
78 |
|
|
143 |
| Total / Wtd. Avg. |
|
452 |
|
8.4 years |
|
$ |
24.07 |
|
$ |
8,205 |
|
$ |
3,550 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
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 and year ended December 31,
2024, the Company completed the following notable capital markets
activities:
- During the
quarter ended December 31, 2024, issued 1,696,601 common shares
under its common stock ATM offering program at a weighted average
gross price of $19.77 per share, for total net proceeds of $33.0
million.
- During the year
ended December 31, 2024, issued 8,922,793 common shares under its
common stock ATM offering program at a weighted average gross price
of $18.79 per share, for total net proceeds of $165.2
million.
- During the year
ended December 31, 2024, issued 15,844 shares under its Series A
Preferred Stock ATM offering program at a weighted average gross
price of $23.22 per share, for total net proceeds of $0.4
million.
- As of December
31, 2024, the Company has $213.0 million of undrawn commitments,
prior to borrowing base limitations, on our Revolving Credit
Facility, and $9.0 million of cash on hand.
The following table provides a summary of the
Company’s long-term debt, as of December 31, 2024:
|
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|
|
|
|
|
|
|
|
|
|
Component of Long-Term Debt |
|
|
Principal |
|
Maturity Date |
|
Interest Rate |
|
Wtd. Avg. Rate |
| 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%] |
|
2.62% |
| Mortgage Note (2) |
|
|
17.8 million |
|
August 2026 |
|
4.060% |
|
4.06% |
| Revolving Credit Facility
(3) |
|
|
87.0 million |
|
January 2027 |
|
SOFR + 10 bps +[1.25% - 2.20%] |
|
5.47% |
| 2027 Term Loan (4) |
|
|
100.0 million |
|
January 2027 |
|
SOFR + 10 bps +[1.25% - 2.20%] |
|
2.70% |
| 2028 Term Loan (5) |
|
|
100.0 million |
|
January 2028 |
|
SOFR + 10 bps +[1.20% - 2.15%] |
|
5.08% |
| 2029 Term Loan (6) |
|
|
100.0 million |
|
September 2029 |
|
SOFR + 0.10% +[1.20% - 2.15%] |
|
4.58% |
| Total Long-Term Debt |
|
$ |
520.8 million |
|
|
|
|
|
4.13% |
|
(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 $50.0 million of the Credit Facility balance to fix
SOFR and achieve a fixed swap rate of 3.85% 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. |
| (6) |
The Company utilized interest
rate swaps on the $100.0 million 2029 Term Loan balance to fix SOFR
and achieve a weighted average fixed swap rate of 3.28% plus the 10
bps SOFR adjustment plus the applicable spread. |
| |
|
As of December 31, 2024, the Company’s net debt
to Pro Forma Adjusted EBITDA was 6.3 times, and as defined in the
Company’s credit agreement, the Company’s fixed charge coverage
ratio was 2.8 times. As of December 31, 2024, the Company’s net
debt to total enterprise value was 40.8%. 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
The Company’s Board of Directors has authorized,
and the Company has declared, a quarterly cash dividend of $0.38
per share of common stock for the first quarter of 2025 (the
“Common Stock Cash Dividend”). The Common Stock Cash Dividend
represents an annualized yield of approximately 7.5% based on the
closing price of the Company’s common stock on February 19,
2025.
The Common Stock Cash Dividend is payable on
March 31, 2025, to stockholders of record as of the close of
business on March 13, 2025, and the ex-dividend date for the Common
Stock Cash Dividend is March 13, 2025.
The Board of Directors also authorized, and the
Company has declared, a quarterly cash dividend of $0.39844 per
share of the Company’s 6.375% Series A Cumulative Redeemable
Preferred Stock for the first quarter of 2025, to be paid on March
31, 2025, to stockholders of record as of the close of business on
March 13, 2025.
On November 19, 2024, the Company announced a
cash dividend on its common stock and Series A Preferred Stock for
the fourth quarter of 2024 of $0.38 per share and $0.40 per share,
respectively, payable on December 31, 2024 to stockholders of
record as of the close of business on December 12, 2024. The fourth
quarter 2024 common stock cash dividend represented a payout ratio
of 82.6% and 77.6% of the Company’s fourth quarter 2024 Core FFO
Attributable to Common Stockholders per Common Share - Diluted and
AFFO Attributable to Common Stockholders per Common Share -
Diluted, respectively.
2025 Outlook
The Company’s outlook for 2025 is based on
current plans and assumptions and subject to risks and
uncertainties more fully described in this press release and the
Company’s reports filed with the U.S. Securities and Exchange
Commission.
The Company’s outlook for 2025 is as
follows:
|
|
|
|
|
|
|
|
| |
|
Outlook Range for 2025 |
| (Unaudited) |
|
Low |
|
High |
| Core FFO per Common Share -
Diluted (1) |
|
$ |
1.80 |
to |
$ |
1.86 |
| AFFO per Common Share -
Diluted (1) |
|
$ |
1.93 |
to |
$ |
1.98 |
|
(1) |
Attributable to Common Stockholders |
| |
|
The Company’s 2025 guidance includes but is not
limited to the following assumptions for the year ending December
31, 2025:
- Investments,
including structured investments, between $100.0 million and $200.0
million at a weighted average initial cash yield between 8.0% and
8.5%.
- Same-Property
NOI growth of approximately 1%, as compared to the year ended
December 31, 2024, including the estimated impact associated with
announced and anticipated store closings.
- General and
administrative expenses within a range of $17.5 million to $18.0
million.
- Outlook
incorporates an estimated $0.10 per common share impact from
announced and anticipated store closings and a $0.05 per common
share impact from the anticipated cash settlement of the Company’s
2025 Convertible Notes which mature in April 2025.
The following table provides a reconciliation of the outlook
range of the Company’s estimated Net Loss Attributable to the
Company per Common Share – Diluted for the year ending December 31,
2025 to the Company’s estimated Core FFO Attributable to Common
Stockholders per Common Share – Diluted and AFFO Attributable to
Common Stockholders per Common Share – Diluted for the year ending
December 31, 2025:
| |
|
|
|
|
|
|
| |
|
Outlook Range for 2025 |
| (Unaudited) |
|
Low |
|
High |
|
Net Loss Attributable to the Company per Common Share -
Diluted |
|
$ |
(0.64 |
) |
|
$ |
(0.58 |
) |
|
Depreciation and Amortization of Real Estate |
|
|
1.86 |
|
|
|
1.86 |
|
|
Gain on Disposition of Assets, Net of Tax (1) |
|
|
- |
|
|
|
- |
|
|
Gain on Disposition of Other Assets (1) |
|
|
- |
|
|
|
- |
|
|
Provision for Impairment (1) |
|
|
- |
|
|
|
- |
|
|
Realized and Unrealized Gain on Investment Securities (1) |
|
|
- |
|
|
|
- |
|
| Funds from Operations, per Common
Share - Diluted |
|
$ |
1.22 |
|
|
$ |
1.28 |
|
|
Distributions to Preferred Stockholders |
|
|
(0.23 |
) |
|
|
(0.23 |
) |
| Funds From Operations
Attributable to Common Stockholders per Common Share - Diluted |
|
$ |
0.99 |
|
|
$ |
1.05 |
|
|
Amortization of Intangibles to Lease Income |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
Loss on Extinguishment of Debt |
|
|
0.82 |
|
|
|
0.82 |
|
| Core FFO Attributable to Common
Stockholders per Common Share - Diluted |
|
$ |
1.80 |
|
|
$ |
1.86 |
|
| Adjustments: |
|
|
|
|
|
|
|
Straight-Line Rent Adjustment |
|
|
(0.04 |
) |
|
|
(0.04 |
) |
|
Amortization of Loan Costs, Discount on Convertible Debt, and
Capitalized Interest |
|
|
0.05 |
|
|
|
0.05 |
|
|
Non-Cash Compensation |
|
|
0.12 |
|
|
|
0.11 |
|
| AFFO Attributable to Common
Stockholders per Common Share - Diluted |
|
$ |
1.93 |
|
|
$ |
1.98 |
|
|
(1) |
The Company’s outlook excludes projections related to these
measures. |
| |
|
Earnings Conference Call &
Webcast
The Company will host a conference call to
present its operating results for the quarter and year ended
December 31, 2024, on Friday, February 21, 2025 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/k4xu8bk2
Registration: https://register.vevent.com/register/BIe7ba8b80e18640dea452c03febbdaca8
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.
| Contact: |
Investor Relations |
| |
ir@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 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, 2024 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 Adjusted 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 Adjusted 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 Adjusted 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 Adjusted 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 Adjusted
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 Adjusted 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 |
|
|
|
December 31, 2024 |
|
December 31, 2023 |
|
ASSETS |
|
|
|
|
|
|
| Real Estate: |
|
|
|
|
|
|
|
Land, at Cost |
|
$ |
257,748 |
|
|
$ |
222,232 |
|
|
Building and Improvements, at Cost |
|
|
720,480 |
|
|
|
559,389 |
|
|
Other Furnishings and Equipment, at Cost |
|
|
883 |
|
|
|
857 |
|
|
Construction in Process, at Cost |
|
|
5,091 |
|
|
|
3,997 |
|
|
Total Real Estate, at Cost |
|
|
984,202 |
|
|
|
786,475 |
|
|
Less, Accumulated Depreciation |
|
|
(82,864 |
) |
|
|
(52,012 |
) |
|
Real Estate—Net |
|
|
901,338 |
|
|
|
734,463 |
|
| Land and Development Costs |
|
|
300 |
|
|
|
731 |
|
| Intangible Lease Assets—Net |
|
|
79,198 |
|
|
|
97,109 |
|
| Investment in Alpine Income
Property Trust, Inc. |
|
|
39,666 |
|
|
|
39,445 |
|
| Mitigation Credits |
|
|
— |
|
|
|
1,044 |
|
| Commercial Loans and
Investments |
|
|
105,043 |
|
|
|
61,849 |
|
| Cash and Cash Equivalents |
|
|
9,017 |
|
|
|
10,214 |
|
| Restricted Cash |
|
|
8,344 |
|
|
|
7,605 |
|
| Refundable Income Taxes |
|
|
70 |
|
|
|
246 |
|
| Deferred Income Taxes—Net |
|
|
2,467 |
|
|
|
2,009 |
|
| Other Assets |
|
|
36,201 |
|
|
|
34,953 |
|
|
Total Assets |
|
$ |
1,181,644 |
|
|
$ |
989,668 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
Accounts Payable |
|
$ |
3,278 |
|
|
$ |
2,758 |
|
|
Accrued and Other Liabilities |
|
|
21,268 |
|
|
|
18,373 |
|
|
Deferred Revenue |
|
|
10,183 |
|
|
|
5,200 |
|
|
Intangible Lease Liabilities—Net |
|
|
15,124 |
|
|
|
10,441 |
|
|
Long-Term Debt |
|
|
518,993 |
|
|
|
495,370 |
|
|
Total Liabilities |
|
|
568,846 |
|
|
|
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
Share Liquidation Preference, 4,713,069 shares issued and
outstanding at December 31, 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,
31,673,479 shares issued and outstanding at December 31, 2024
and 22,643,034 shares issued and outstanding at December 31,
2023 |
|
|
317 |
|
|
|
226 |
|
|
Additional Paid-In Capital |
|
|
367,828 |
|
|
|
168,435 |
|
|
Retained Earnings |
|
|
232,089 |
|
|
|
281,944 |
|
|
Accumulated Other Comprehensive Income |
|
|
12,517 |
|
|
|
6,891 |
|
|
Total Stockholders’ Equity |
|
|
612,798 |
|
|
|
457,526 |
|
|
Total Liabilities and Stockholders’ Equity |
|
$ |
1,181,644 |
|
|
$ |
989,668 |
|
|
|
|
|
|
|
|
|
|
|
|
CTO Realty Growth, Inc.Consolidated
Statements of Operations (In thousands, except share, per
share and dividend data) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Properties |
|
$ |
31,562 |
|
|
$ |
26,290 |
|
|
$ |
110,591 |
|
|
$ |
96,663 |
|
|
Management Fee Income |
|
|
1,230 |
|
|
|
1,094 |
|
|
|
4,590 |
|
|
|
4,388 |
|
|
Interest Income From Commercial Loans and Investments |
|
|
2,950 |
|
|
|
1,119 |
|
|
|
7,357 |
|
|
|
4,084 |
|
|
Real Estate Operations |
|
|
— |
|
|
|
1,382 |
|
|
|
1,981 |
|
|
|
3,984 |
|
|
Total Revenues |
|
|
35,742 |
|
|
|
29,885 |
|
|
|
124,519 |
|
|
|
109,119 |
|
| Direct Cost of Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Properties |
|
|
(9,155 |
) |
|
|
(7,572 |
) |
|
|
(31,785 |
) |
|
|
(28,455 |
) |
|
Real Estate Operations |
|
|
— |
|
|
|
(847 |
) |
|
|
(1,437 |
) |
|
|
(1,723 |
) |
|
Total Direct Cost of Revenues |
|
|
(9,155 |
) |
|
|
(8,419 |
) |
|
|
(33,222 |
) |
|
|
(30,178 |
) |
| General and Administrative
Expenses |
|
|
(4,519 |
) |
|
|
(3,756 |
) |
|
|
(16,269 |
) |
|
|
(14,249 |
) |
| Provision for Impairment |
|
|
(23 |
) |
|
|
(148 |
) |
|
|
(676 |
) |
|
|
(1,556 |
) |
| Depreciation and
Amortization |
|
|
(29,348 |
) |
|
|
(11,359 |
) |
|
|
(65,049 |
) |
|
|
(44,173 |
) |
|
Total Operating Expenses |
|
|
(43,045 |
) |
|
|
(23,682 |
) |
|
|
(115,216 |
) |
|
|
(90,156 |
) |
| Gain on Disposition of
Assets |
|
|
— |
|
|
|
3,978 |
|
|
|
8,308 |
|
|
|
7,543 |
|
|
Other Gain |
|
|
— |
|
|
|
3,978 |
|
|
|
8,308 |
|
|
|
7,543 |
|
|
Total Operating Income (Loss) |
|
|
(7,303 |
) |
|
|
10,181 |
|
|
|
17,611 |
|
|
|
26,506 |
|
| Investment and Other Income
(Loss) |
|
|
(2,595 |
) |
|
|
3,283 |
|
|
|
2,606 |
|
|
|
1,987 |
|
| Interest Expense |
|
|
(5,756 |
) |
|
|
(6,198 |
) |
|
|
(22,521 |
) |
|
|
(22,359 |
) |
|
Income (Loss) Before Income Tax Benefit (Expense) |
|
|
(15,654 |
) |
|
|
7,266 |
|
|
|
(2,304 |
) |
|
|
6,134 |
|
| Income Tax Benefit (Expense) |
|
|
437 |
|
|
|
(229 |
) |
|
|
339 |
|
|
|
(604 |
) |
|
Net Income (Loss) Attributable to the Company |
|
|
(15,217 |
) |
|
|
7,037 |
|
|
|
(1,965 |
) |
|
|
5,530 |
|
| Distributions to Preferred
Stockholders |
|
|
(1,878 |
) |
|
|
(1,187 |
) |
|
|
(6,814 |
) |
|
|
(4,772 |
) |
|
Net Income (Loss) Attributable to Common Stockholders |
|
$ |
(17,095 |
) |
|
$ |
5,850 |
|
|
$ |
(8,779 |
) |
|
$ |
758 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Per Share Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Net Income (Loss) Attributable to Common Stockholders |
|
$ |
(0.56 |
) |
|
$ |
0.26 |
|
|
$ |
(0.35 |
) |
|
$ |
0.03 |
|
|
Diluted Net Income (Loss) Attributable to Common Stockholders |
|
$ |
(0.56 |
) |
|
$ |
0.25 |
|
|
$ |
(0.35 |
) |
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted Average Number of Common
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
30,603,089 |
|
|
|
22,440,404 |
|
|
|
25,361,379 |
|
|
|
22,529,703 |
|
|
Diluted |
|
|
30,703,941 |
|
|
|
25,876,738 |
|
|
|
25,401,176 |
|
|
|
22,529,703 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends Declared and Paid - Preferred Stock |
|
$ |
0.40 |
|
|
$ |
0.40 |
|
|
$ |
1.59 |
|
|
$ |
1.59 |
|
|
Dividends Declared and Paid - Common Stock |
|
$ |
0.38 |
|
|
$ |
0.38 |
|
|
$ |
1.52 |
|
|
$ |
1.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CTO Realty Growth, Inc.Non-GAAP Financial
MeasuresSame-Property NOI
Reconciliation(Unaudited)(In thousands) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Year Ended |
|
|
|
December 31, 2024 |
|
December 31, 2023 |
|
December 31, 2024 |
|
December 31, 2023 |
|
Net Income (Loss) Attributable to the Company |
|
$ |
(15,217 |
) |
|
$ |
7,037 |
|
|
$ |
(1,965 |
) |
|
$ |
5,530 |
|
|
Gain on Disposition of Assets, Net of Tax |
|
|
— |
|
|
|
(3,978 |
) |
|
|
(8,308 |
) |
|
|
(7,543 |
) |
|
Provision for Impairment |
|
|
23 |
|
|
|
148 |
|
|
|
676 |
|
|
|
1,556 |
|
|
Depreciation and Amortization |
|
|
29,348 |
|
|
|
11,359 |
|
|
|
65,049 |
|
|
|
44,173 |
|
|
Amortization of Intangibles to Lease Income |
|
|
1,084 |
|
|
|
(510 |
) |
|
|
254 |
|
|
|
(2,303 |
) |
|
Straight-Line Rent Adjustment |
|
|
169 |
|
|
|
240 |
|
|
|
1,681 |
|
|
|
1,159 |
|
|
COVID-19 Rent Repayments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(46 |
) |
|
Accretion of Tenant Contribution |
|
|
13 |
|
|
|
14 |
|
|
|
52 |
|
|
|
128 |
|
|
Interest Expense |
|
|
5,756 |
|
|
|
6,198 |
|
|
|
22,521 |
|
|
|
22,359 |
|
|
General and Administrative Expenses |
|
|
4,519 |
|
|
|
3,756 |
|
|
|
16,269 |
|
|
|
14,249 |
|
|
Investment and Other Income |
|
|
2,595 |
|
|
|
(3,283 |
) |
|
|
(2,606 |
) |
|
|
(1,987 |
) |
|
Income Tax Benefit (Expense) |
|
|
(437 |
) |
|
|
229 |
|
|
|
(339 |
) |
|
|
604 |
|
|
Real Estate Operations Revenues |
|
|
— |
|
|
|
(1,382 |
) |
|
|
(1,981 |
) |
|
|
(3,984 |
) |
|
Real Estate Operations Direct Cost of Revenues |
|
|
— |
|
|
|
847 |
|
|
|
1,437 |
|
|
|
1,723 |
|
|
Management Fee Income |
|
|
(1,230 |
) |
|
|
(1,094 |
) |
|
|
(4,590 |
) |
|
|
(4,388 |
) |
|
Interest Income From Commercial Loans and Investments |
|
|
(2,950 |
) |
|
|
(1,119 |
) |
|
|
(7,357 |
) |
|
|
(4,084 |
) |
|
Other Non-Recurring Items (1) |
|
|
(255 |
) |
|
|
— |
|
|
|
(1,507 |
) |
|
|
— |
|
|
Less: Impact of Properties Not Owned for the Full Reporting
Period |
|
|
(6,315 |
) |
|
|
(1,363 |
) |
|
|
(18,845 |
) |
|
|
(9,023 |
) |
| Same-Property NOI |
|
$ |
17,103 |
|
|
$ |
17,099 |
|
|
$ |
60,441 |
|
|
$ |
58,123 |
|
|
(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 Months Ended |
|
Year Ended |
|
|
|
December 31, 2024 |
|
December 31, 2023 |
|
December 31, 2024 |
|
December 31, 2023 |
|
Net Income (Loss) Attributable to the Company |
|
$ |
(15,217 |
) |
|
$ |
7,037 |
|
|
$ |
(1,965 |
) |
|
$ |
5,530 |
|
|
Add Back: Effect of Dilutive Interest Related to 2025 Notes
(1) |
|
|
— |
|
|
|
539 |
|
|
|
— |
|
|
|
— |
|
| Net Income (Loss) Attributable to
the Company, If-Converted |
|
$ |
(15,217 |
) |
|
$ |
7,576 |
|
|
$ |
(1,965 |
) |
|
$ |
5,530 |
|
|
Depreciation and Amortization of Real Estate |
|
|
29,331 |
|
|
|
11,338 |
|
|
|
64,981 |
|
|
|
44,107 |
|
|
Gain on Disposition of Assets, Net of Tax |
|
|
— |
|
|
|
(3,978 |
) |
|
|
(8,308 |
) |
|
|
(7,543 |
) |
|
Gain on Disposition of Other Assets |
|
|
(354 |
) |
|
|
(533 |
) |
|
|
(904 |
) |
|
|
(2,272 |
) |
|
Provision for Impairment |
|
|
23 |
|
|
|
148 |
|
|
|
676 |
|
|
|
1,556 |
|
|
Realized and Unrealized Loss (Gain) on Investment Securities |
|
|
3,331 |
|
|
|
(1,974 |
) |
|
|
463 |
|
|
|
3,689 |
|
|
Extinguishment of Contingent Obligation |
|
|
— |
|
|
|
(515 |
) |
|
|
— |
|
|
|
(2,815 |
) |
| Funds from Operations |
|
$ |
17,114 |
|
|
$ |
12,062 |
|
|
$ |
54,943 |
|
|
$ |
42,252 |
|
|
Distributions to Preferred Stockholders |
|
|
(1,878 |
) |
|
|
(1,187 |
) |
|
|
(6,814 |
) |
|
|
(4,772 |
) |
| Funds From Operations
Attributable to Common Stockholders |
|
$ |
15,236 |
|
|
$ |
10,875 |
|
|
$ |
48,129 |
|
|
$ |
37,480 |
|
|
Amortization of Intangibles to Lease Income |
|
|
(1,084 |
) |
|
|
510 |
|
|
|
(254 |
) |
|
|
2,303 |
|
|
Less: Effect of Dilutive Interest Related to 2025 Notes (1) |
|
|
— |
|
|
|
(539 |
) |
|
|
— |
|
|
|
— |
|
| Core Funds From Operations
Attributable to Common Stockholders |
|
$ |
14,152 |
|
|
$ |
10,846 |
|
|
$ |
47,875 |
|
|
$ |
39,783 |
|
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Straight-Line Rent Adjustment |
|
|
(169 |
) |
|
|
(240 |
) |
|
|
(1,681 |
) |
|
|
(1,159 |
) |
|
COVID-19 Rent Repayments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
46 |
|
|
Other Depreciation and Amortization |
|
|
(3 |
) |
|
|
1 |
|
|
|
(13 |
) |
|
|
(91 |
) |
|
Amortization of Loan Costs, Discount on Convertible Debt, and
Capitalized Interest |
|
|
203 |
|
|
|
185 |
|
|
|
955 |
|
|
|
821 |
|
|
Non-Cash Compensation |
|
|
750 |
|
|
|
871 |
|
|
|
3,637 |
|
|
|
3,673 |
|
| Adjusted Funds From Operations
Attributable to Common Stockholders |
|
$ |
14,933 |
|
|
$ |
11,663 |
|
|
$ |
50,773 |
|
|
$ |
43,073 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO Attributable to Common Stockholders per Common Share - Diluted
(1) |
|
$ |
0.50 |
|
|
$ |
0.42 |
|
|
$ |
1.89 |
|
|
$ |
1.66 |
|
|
Core FFO Attributable to Common Stockholders per Common Share -
Diluted (1) |
|
$ |
0.46 |
|
|
$ |
0.48 |
|
|
$ |
1.88 |
|
|
$ |
1.77 |
|
|
AFFO Attributable to Common Stockholders per Common Share - Diluted
(1) |
|
$ |
0.49 |
|
|
$ |
0.52 |
|
|
$ |
2.00 |
|
|
$ |
1.91 |
|
|
(1) |
For the three months ended December 31, 2024, and the years ended
December 31, 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. For the three months ended December 31, 2023,
interest related to the 2025 Convertible Senior Notes was added
back to net income attributable to the Company to derive FFO, as
the impact to net income attributable to common stockholders was
dilutive. |
| |
|
|
CTO Realty Growth, Inc.Non-GAAP Financial
MeasuresReconciliation of Net Debt to Pro Forma
Adjusted EBITDA(Unaudited)(In thousands) |
| |
|
|
|
| |
|
Three Months Ended |
|
|
|
December 31, 2024 |
|
Net Loss Attributable to the Company |
|
$ |
(15,217 |
) |
|
Depreciation and Amortization of Real Estate |
|
|
29,331 |
|
|
Gain on Disposition of Other Assets, Net of Tax |
|
|
(354 |
) |
|
Provision for Impairment |
|
|
23 |
|
|
Unrealized Gain on Investment Securities |
|
|
3,331 |
|
|
Distributions to Preferred Stockholders |
|
|
(1,878 |
) |
|
Amortization of Intangibles to Lease Income |
|
|
(1,084 |
) |
|
Straight-Line Rent Adjustment |
|
|
(169 |
) |
|
Other Depreciation and Amortization |
|
|
(3 |
) |
|
Amortization of Loan Costs, Discount on Convertible Debt, and
Capitalized Interest |
|
|
203 |
|
|
Non-Cash Compensation |
|
|
750 |
|
|
Other Non-Recurring Items (1) |
|
|
(255 |
) |
|
Interest Expense, Net of Amortization of Loan Costs and Discount on
Convertible Debt |
|
|
5,440 |
|
| Adjusted EBITDA |
|
$ |
20,118 |
|
| |
|
|
|
| Annualized Adjusted EBITDA |
|
$ |
80,472 |
|
|
Pro Forma Annualized Impact of Current Quarter Investments and
Dispositions, Net (2) |
|
|
1,009 |
|
| Pro Forma Adjusted EBITDA |
|
$ |
81,481 |
|
| |
|
|
|
| Total Long-Term Debt |
|
$ |
518,993 |
|
|
Financing Costs, Net of Accumulated Amortization |
|
|
1,796 |
|
|
Unamortized Convertible Debt Discount |
|
|
45 |
|
|
Cash and Cash Equivalents |
|
|
(9,017 |
) |
| Net Debt |
|
$ |
511,817 |
|
| |
|
|
|
| Net Debt to Pro Forma Adjusted
EBITDA |
|
|
6.3 |
|
|
(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 Adjusted EBITDA of the Company’s investments
and disposition activity during the three months ended December 31,
2024. |
CTO Realty Growth (NYSE:CTO)
Historical Stock Chart
From Jan 2025 to Feb 2025
CTO Realty Growth (NYSE:CTO)
Historical Stock Chart
From Feb 2024 to Feb 2025
