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, 2023.
Select Full Year 2023
Highlights
- Reported Net
Income per diluted share attributable to common stockholders of
$0.03 for the year ended December 31, 2023.
- Reported Core
FFO per diluted share attributable to common stockholders of $1.77
for the year ended December 31, 2023.
- Reported AFFO
per diluted share attributable to common stockholders of $1.91 for
the year ended December 31, 2023.
- Invested $80.0
million into four retail property acquisitions and one land parcel,
totaling 470,600 leasable square feet at a weighted-average
going-in cash cap rate of 7.5%.
- Originated one
first mortgage and provided seller financing through a short-term
first mortgage totaling $30.4 million of structured investments at
a weighted-average initial yield of 8.1%.
- Sold nine income
properties for total disposition volume of $87.1 million at a
weighted average exit cap rate of 7.5%.
- Reported a
decrease of (2.4%) in Same-Property NOI as compared to the
year-ended December 31, 2022.
- Signed 61
comparable leases totaling 341,547 square feet at an average cash
base rent of $26.97 per square foot, resulting in comparable rent
per square foot growth of 7.5%.
- Repurchased
369,300 shares of common stock at an average price of $16.35 per
share.
- Repurchased
21,192 shares of Series A Preferred Stock at an average price of
$18.45 per share.
- Paid regular
common stock cash dividends during the full year of 2023 of $1.52
per share, a 1.8% increase over the Company’s 2022 common stock
cash dividends.
- Subsequent to
year-end 2023, the Company entered into a contract to sell its
mixed-use property in Santa Fe, NM for approximately $20.0 million.
The prospective buyer’s deposit is non-refundable, and closing is
anticipated to occur before March 31, 2024.
- On February 16,
2024, the Company signed a ground lease with a purchase option,
subject to a feasibility period, for the undeveloped 10-acre land
parcel adjacent to The Collection at Forsyth in Cumming, GA.
- On February 16, 2024, the Company
completed the sale of its remaining Subsurface Interests for gross
proceeds of $5.0 million.
Select Fourth Quarter 2023
Highlights
- Reported Net
Income per diluted share attributable to common stockholders of
$0.25 for the quarter ended December 31, 2023.
- Reported Core
FFO per diluted share attributable to common stockholders of $0.48
for the quarter ended December 31, 2023.
- Reported AFFO
per diluted share attributable to common stockholders of $0.52 for
the quarter ended December 31, 2023.
- Sold six
properties during the quarter for total disposition volume of $64.2
million at a weighted average exit cap rate of 7.8%, generating
total gains on sales of $3.1 million.
- Originated one
$15.4 million short-term first mortgage in the form of seller
financing, at a going-in cash yield of 7.5%.
- Reported an
increase in Same-Property NOI of 4.7% as compared to the fourth
quarter of 2022.
- Signed 16
comparable leases during the quarter totaling 74,246 square feet at
an average cash base rent of $29.95 per square foot, resulting in
comparable rent per square foot growth of 17.9%.
- Repurchased
62,015 shares of common stock at an average price of $15.72 per
share.
- Repurchased
14,398 shares of Series A Preferred Stock at an average price of
$18.40 per share.
- Paid a common stock cash dividend
of $0.38 per share, representing an annualized yield of 9.2% based
on the closing price of the Company’s common stock on February 21,
2024.
CEO Comments
“Operational performance in the fourth quarter
was strong, with comparable leasing rent growth of nearly 18% and
same-store NOI growth of just under 5%. Even with some of the
tenant challenges we experienced in the first half of the year, we
continued to improve our portfolio, balance sheet, and long-term
growth profile, and our fourth quarter performance caps off a year
where we delivered $1.91 of AFFO per share,” said John P. Albright,
President and Chief Executive Officer of CTO Realty Growth. “For
2024, we have a number of strategic initiatives we’re focused on to
set the stage for meaningful property NOI growth in 2025, including
the recent openings of Politan Row, Culinary Dropout, and Fogo de
Chão, and rent commencing the majority of our signed-but-not-open
pipeline that represents more than 6% of in-place annualized cash
base rents. We are also seeing more opportunities for investment
and look forward to being active in the transactions market as we
continually search for opportunities to grow our high-quality
retail-focused portfolio.”
Year-to-Date Financial Results
Highlights
The table below provides a summary of the
Company’s operating results for the year ended December 31,
2023:
| (in thousands, except per
share data) |
For the Year EndedDecember 31,
2023 |
|
For the Year EndedDecember 31,
2022 |
|
Variance to Comparable Period in the Prior
Year |
|
Net Income Attributable to the Company |
$ |
5,530 |
|
$ |
3,158 |
|
|
$ |
2,372 |
75.1 |
% |
| Net Income (Loss) Attributable
to Common Stockholders |
$ |
758 |
|
$ |
(1,623 |
) |
|
$ |
2,381 |
146.7 |
% |
| Net Income (Loss) per Diluted
Share Attributable to Common Stockholders (1) |
$ |
0.03 |
|
$ |
(0.09 |
) |
|
$ |
0.12 |
133.3 |
% |
| |
|
|
|
|
|
|
|
|
|
| Core FFO Attributable to
Common Stockholders (2) |
$ |
39,783 |
|
$ |
32,212 |
|
|
$ |
7,571 |
23.5 |
% |
| Core FFO per Common Share –
Diluted (2) |
$ |
1.77 |
|
$ |
1.74 |
|
|
$ |
0.03 |
1.7 |
% |
| |
|
|
|
|
|
|
|
|
|
| AFFO Attributable to Common
Stockholders (2) |
$ |
43,073 |
|
$ |
33,925 |
|
|
$ |
9,148 |
27.0 |
% |
| AFFO per Common Share –
Diluted (2) |
$ |
1.91 |
|
$ |
1.83 |
|
|
$ |
0.08 |
4.4 |
% |
| |
|
|
|
|
|
|
|
|
|
| Dividends Declared and Paid,
per Preferred Share |
$ |
1.59 |
|
$ |
1.59 |
|
|
$ |
— |
0.0 |
% |
| Dividends Declared and Paid,
per Common Share |
$ |
1.52 |
|
$ |
1.49 |
|
|
$ |
0.03 |
1.8 |
% |
|
(1) |
|
The denominator for this measure excludes the impact of 3.3 million
and 3.1 million shares for the years ended December 31, 2023 and
2022, 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
per Common Share – Diluted, Core FFO Attributable to Common
Stockholders, Core FFO per Common Share – Diluted, AFFO
Attributable to Common Stockholders and AFFO per Common Share –
Diluted. |
| |
|
|
Quarterly Financial Results
Highlights
The table below provides a summary of the
Company’s operating results for the three months ended December 31,
2023:
| (in thousands, except per
share data) |
For the ThreeMonths
EndedDecember 31, 2023 |
|
For the ThreeMonths
EndedDecember 31, 2022 |
|
Variance to Comparable Period in the Prior
Year |
|
Net Income (Loss) Attributable to the Company |
$ |
7,037 |
|
$ |
(3,079 |
) |
|
$ |
10,116 |
328.5 |
% |
| Net Income (Loss) Attributable
to Common Stockholders |
$ |
5,850 |
|
$ |
(4,274 |
) |
|
$ |
10,124 |
236.9 |
% |
| Net Income (Loss) per Diluted
Share Attributable to Common Stockholders (1) |
$ |
0.25 |
|
$ |
(0.21 |
) |
|
$ |
0.46 |
219.0 |
% |
| |
|
|
|
|
|
|
|
|
|
| Core FFO Attributable to
Common Stockholders (2) |
$ |
10,846 |
|
$ |
6,816 |
|
|
$ |
4,030 |
59.1 |
% |
| Core FFO per Common Share –
Diluted (2) |
$ |
0.48 |
|
$ |
0.34 |
|
|
$ |
0.14 |
41.2 |
% |
| |
|
|
|
|
|
|
|
|
|
| AFFO Attributable to Common
Stockholders (2) |
$ |
11,663 |
|
$ |
7,361 |
|
|
$ |
4,302 |
58.4 |
% |
| AFFO per Common Share –
Diluted (2) |
$ |
0.52 |
|
$ |
0.37 |
|
|
$ |
0.15 |
40.5 |
% |
| |
|
|
|
|
|
|
|
|
|
| Dividends Declared and Paid,
per Preferred Share |
$ |
0.40 |
|
$ |
0.40 |
|
|
$ |
— |
0.0 |
% |
| Dividends Declared and Paid,
per Common Share |
$ |
0.38 |
|
$ |
0.38 |
|
|
$ |
— |
0.0 |
% |
|
(1) |
|
For the three months ended December 31, 2023, the denominator for
this measure includes the impact of 3.4 million shares related to
the Company’s adoption of ASU 2020-06, effective January 1, 2022,
which requires presentation on an if-converted basis for its 2025
Convertible Senior Notes, as the impact was dilutive for the
period. For the three months ended December 31, 2022, the
denominator for this measure excludes the impact of 3.2 million
shares, as the impact would be anti-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 (Loss) Attributable to the Company to non-GAAP financial
measures, including FFO Attributable to Common Stockholders, FFO
per Common Share - Diluted, Core FFO Attributable to Common
Stockholders, Core FFO per Common Share – Diluted, AFFO
Attributable to Common Stockholders and AFFO per Common Share -
Diluted. |
| |
|
|
Investments
During the year ended December 31, 2023, the
Company invested $80.0 million into four retail property
acquisitions totaling 470,600 square feet and one land parcel and
originated two first mortgage structured investments totaling $30.4
million. These 2023 acquisitions and structured investments were
completed at a weighted average going-in cash yield of
7.7%.
During the three months ended December 31, 2023,
the Company originated one $15.4 million first mortgage structured
investment, secured by the Company’s recently sold Sabal Pavilion
single tenant office property in Tampa, Florida. The 6-month first
mortgage was arranged in the form of seller financing at the time
of the Company’s property sale, is interest-only through maturity,
and bears a fixed interest rate of 7.5%.
Dispositions
During the year ended December 31, 2023, the
Company sold nine income properties for total disposition volume of
$87.1 million at a weighted average exit cap rate of 7.5%,
generating total gains on sales of $6.6 million.
During the three months ended December 31, 2023,
the Company sold six income properties for total disposition volume
of $64.2 million at a weighted average exit cap rate of 7.8%,
generating total gains on sales of $3.1 million.
Subsequent to year-end 2023, the Company entered
into the following arrangements:
- The Company
entered into a contract to sell its mixed-use property in Santa Fe,
NM for approximately $20.0 million. The prospective buyer’s deposit
is non-refundable, and closing is anticipated to occur before March
31, 2024.
- The Company signed a ground lease
with a purchase option, subject to a feasibility period, for the
undeveloped 10-acre land parcel adjacent to The Collection at
Forsyth in Cumming, GA (the “Property”). As part of the agreement,
the Company will receive monthly feasibility payments of $30,000
from February 16, 2024 through September 30, 2024 (the “Feasibility
Period”). The counterparty will have a right to terminate the
agreement during the Feasibility Period (the “Termination Right”).
Following the Feasibility Period and expiration of the Termination
Right, commencing October 1, 2024, the counterparty will have the
right to enter into a 20-year ground lease requiring monthly ground
lease payments of $43,000 (the ‘Ground Lease”). The Ground Lease
includes increases of 3% annually. Additionally, beginning January
1, 2025 and expiring April 1, 2029 (the “Purchase Right Period”),
the counterparty will have the right to acquire the Property for a
predefined purchase price and the purchase price will increase by
3% each year of the Purchase Right Period.
Portfolio Summary
The Company’s income property portfolio consisted of the
following as of December 31, 2023:
|
Asset Type |
|
# of Properties |
|
Square Feet |
|
Weighted Average Remaining Lease Term |
| Single Tenant |
|
6 |
|
252 |
|
6.2 years |
| Multi-Tenant |
|
14 |
|
3,461 |
|
4.3 years |
| Total / Weighted Average Lease
Term |
|
20 |
|
3,712 |
|
5.1 years |
Square feet in thousands. Any differences are a
result of rounding.
|
Property Type |
|
# of Properties |
|
Square Feet |
|
% of Cash Base Rent |
|
Retail |
|
14 |
|
2,148 |
|
56.7% |
| Office |
|
1 |
|
210 |
|
5.0% |
| Mixed-Use |
|
5 |
|
1,355 |
|
38.3% |
| Total / Weighted Average Lease
Term |
|
20 |
|
3,712 |
|
100% |
Square feet in thousands. Any differences are a
result of rounding.
|
Leased Occupancy |
93.3% |
|
|
| Occupancy |
90.3% |
|
|
Same Property Net Operating
Income
During the full year of 2023, the Company’s
Same-Property NOI totaled $34.5 million, a decrease of (2.4%) over
the prior full year period, as presented in the following
table.
| |
For the Year EndedDecember 31,
2023 |
|
For the Year EndedDecember 31,
2022 |
|
Variance to Comparable Period in the Prior
Year |
|
Single Tenant |
$ |
5,323 |
|
$ |
4,940 |
|
$ |
383 |
|
7.8 |
% |
| Multi-Tenant |
|
29,218 |
|
|
30,451 |
|
|
(1,233 |
) |
(4.0 |
%) |
| Total |
$ |
34,541 |
|
$ |
35,391 |
|
$ |
(850 |
) |
(2.4 |
%) |
$ in thousands.
During the fourth quarter of 2023, the Company’s
Same-Property NOI totaled $11.0 million, an increase of 4.7% over
the comparable prior year period, as presented in the following
table.
| |
For the Three Months EndedDecember 31,
2023 |
|
For the Three Months EndedDecember 31,
2022 |
|
Variance to Comparable Period in the Prior
Year |
|
Single Tenant |
$ |
1,984 |
|
$ |
1,781 |
|
$ |
203 |
11.4 |
% |
| Multi-Tenant |
|
8,994 |
|
|
8,701 |
|
|
293 |
3.4 |
% |
| Total |
$ |
10,978 |
|
$ |
10,482 |
|
$ |
496 |
4.7 |
% |
$ in thousands.
Leasing Activity
During the year ended December 31, 2023, the
Company signed 92 leases totaling 496,643 square feet. On a
comparable basis, which excludes vacancy existing at the time of
acquisition, CTO signed 61 leases totaling 341,547 square feet at
an average cash base rent of $26.97 per square foot compared to a
previous average cash base rent of $25.09 per square foot,
representing 7.5% comparable growth.
A summary of the Company’s overall leasing
activity for the year ended December 31, 2023, is as follows:
|
|
|
Square Feet |
|
Weighted Average Lease Term |
|
Cash Rent Per Square Foot |
|
Tenant Improvements |
|
Leasing Commissions |
|
New Leases |
|
239 |
|
8.6 years |
|
$ |
27.46 |
|
$ |
7,087 |
|
$ |
3,079 |
| Renewals & Extensions |
|
258 |
|
4.6 years |
|
$ |
24.92 |
|
|
142 |
|
|
173 |
| Total / Weighted Average |
|
497 |
|
8.7 years |
|
$ |
26.15 |
|
$ |
7,229 |
|
$ |
3,252 |
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 quarter ended December 31, 2023, the
Company signed 22 leases totaling 96,729 square feet. On a
comparable basis, which excludes vacancy existing at the time of
acquisition, CTO signed 16 leases totaling 74,246 square feet at an
average cash base rent of $29.95 per square foot compared to a
previous average cash base rent of $25.41 per square foot,
representing 17.9% comparable increase.
A summary of the Company’s overall leasing
activity for the quarter ended December 31, 2023, is as
follows:
|
|
|
Square Feet |
|
Weighted Average Lease Term |
|
Cash Rent Per Square Foot |
|
Tenant Improvements |
|
Leasing Commissions |
|
New Leases |
|
41 |
|
9.5 years |
|
$ |
39.87 |
|
$ |
2,714 |
|
$ |
970 |
| Renewals & Extensions |
|
56 |
|
5.8 years |
|
$ |
27.48 |
|
|
- |
|
|
37 |
| Total / Weighted Average |
|
97 |
|
7.7 years |
|
$ |
32.66 |
|
$ |
2,714 |
|
$ |
1,007 |
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.
Subsurface Interests and Mitigation
Credits
During the year ended December 31, 2023, the
Company sold approximately 3,481 acres of subsurface oil, gas, and
mineral rights for $1.0 million, resulting in a gain of $1.0
million.
During the year ended December 31, 2023, the
Company sold approximately 20.5 mitigation credits for $2.3
million, resulting in a gain of $0.7 million.
During the three months ended December 31, 2023,
the Company sold approximately 11.0 mitigation credits for $1.2
million, resulting in a gain of $0.3 million.
On February 16, 2024, the Company completed the
sale of its remaining subsurface oil, gas, and mineral rights
totaling approximately 352,000 acres in 19 counties in the State of
Florida (“Subsurface Interests”) for gross proceeds of $5.0
million. As part of the Subsurface Interests sale, the Company
entered into a management agreement with the buyer to provide
ongoing management services for an annual base management fee of
$100,000 and the potential to earn additional incentive fees if
certain conditions are met.
Capital Markets and Balance
Sheet
During the quarter ended December 31, 2023, the
Company completed the following capital markets activities:
- Repurchased
62,015 shares of common stock at an average price of $15.72 per
share.
- Repurchased
14,398 shares of Series A Preferred Stock at an average price of
$18.40 per share.
- Entered into a $50 million forward
starting interest rate swap agreement to fix SOFR at a weighted
average fixed swap rate of 3.85% for the period between February
2024 and January 2028.
The following table provides a summary of the
Company’s long-term debt, at face value, as of December 31,
2023:
|
Component of Long-Term Debt |
|
Principal |
|
Interest Rate |
|
Maturity Date |
| 2025 Convertible Senior
Notes |
|
$ 51.0 million |
|
3.875% |
|
April 2025 |
| 2026 Term Loan (1) |
|
65.0 million |
|
SOFR + 10 bps + [1.25% – 2.20%] |
|
March 2026 |
| Mortgage Note (2) |
|
17.8 million |
|
4.06% |
|
August 2026 |
| Revolving Credit Facility
(3) |
|
163.0 million |
|
SOFR + 10 bps + [1.25% – 2.20%] |
|
January 2027 |
| 2027 Term Loan (4) |
|
100.0 million |
|
SOFR + 10 bps + [1.25% – 2.20%] |
|
January 2027 |
| 2028 Term Loan (5) |
|
100.0 million |
|
SOFR + 10 bps + [1.20% – 2.15%] |
|
January 2028 |
| Total Debt / Weighted Average
Interest Rate |
|
$ 496.8 million |
|
4.30% |
|
|
|
(1) |
|
The Company utilized interest rate swaps on the $65.0 million 2026
Term Loan balance to fix SOFR and achieve a weighted average fixed
swap rate of 0.26% plus the 10 bps SOFR adjustment plus the
applicable spread. |
| (2) |
|
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 $100.0 million of the Credit Facility 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. |
| (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 0.64% 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 December 31, 2023, the Company’s net debt
to Pro Forma EBITDA was 7.6 times, and as defined in the Company’s
credit agreement, the Company’s fixed charge coverage ratio was 2.6
times. As of December 31, 2023, the Company’s net debt to total
enterprise value was 50.6%. 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 November 21, 2023, the Company announced a
cash dividend on its common stock and Series A Preferred stock for
the fourth quarter of 2023 of $0.38 per share and $0.40 per share,
respectively, payable on December 29, 2023 to stockholders of
record as of the close of business on December 14, 2023. The fourth
quarter 2023 common stock cash dividend represents a payout ratio
of 79.2% and 73.1% of the Company’s fourth quarter 2023 Core FFO
per diluted share and AFFO per diluted share, respectively.
During the year ended December 31, 2023, the
Company paid cash dividends on its common stock and Series A
Preferred stock of $1.52 per share and $1.59 per share,
respectively. The 2023 common stock cash dividends represent a 1.8%
increase over the Company’s full year 2022 common stock cash
dividends and payout ratios of 85.9% and 79.6% of the Company’s
full year 2023 Core FFO per diluted share and AFFO per diluted
share, respectively.
On February 20, 2024, the Company declared a
common stock cash dividend for the first quarter of 2024 of $0.38
per share, representing an annualized yield of 9.2% based on the
closing price of the Company’s common stock on February 21,
2024.
2024 Guidance
The Company’s estimated Core FFO per diluted
share and AFFO per diluted share for 2024 is as
follows:
| |
2024 Guidance Range |
| |
Low |
|
High |
|
Core FFO Per Diluted Share |
$ |
1.56 |
to |
$ |
1.64 |
| AFFO Per Diluted Share |
$ |
1.70 |
to |
$ |
1.78 |
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 22.5 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 $100 million and $150
million at a weighted average initial cash yield between 7.75% and
8.25%
- Disposition of assets between $75
million and $125 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 and year ended
December 31, 2023 on Friday, February 23, 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 link provided in the
event details below and you will be provided with dial-in
details.
Webcast:
https://edge.media-server.com/mmc/p/qr25b7sf
Dial-In:
https://register.vevent.com/register/BI18b7afe0b0bd43d1bda0f7925b2705d8
We encourage participants to dial into the
conference call at least fifteen minutes ahead of the scheduled
start time. A replay of the earnings call will be archived and
available online through the Investor Relations section of the
Company’s website at www.ctoreit.com.
About CTO Realty Growth,
Inc.
CTO Realty Growth, Inc. is a publicly traded
real estate investment trust that owns and operates a portfolio of
high-quality, retail-based properties located primarily in higher
growth markets in the United States. CTO also externally manages
and owns a meaningful interest in Alpine Income Property Trust,
Inc. (NYSE: PINE), a publicly traded net lease REIT.
We encourage you to review our most recent
investor presentation and supplemental financial information, which
is available on our website at www.ctoreit.com.
Safe Harbor
Certain statements contained in this press
release (other than statements of historical fact) are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements can typically be identified by words such as “believe,”
“estimate,” “expect,” “intend,” “anticipate,” “will,” “could,”
“may,” “should,” “plan,” “potential,” “predict,” “forecast,”
“project,” and similar expressions, as well as variations or
negatives of these words.
Although forward-looking statements are made
based upon management’s present expectations and reasonable beliefs
concerning future developments and their potential effect upon the
Company, a number of factors could cause the Company’s actual
results to differ materially from those set forth in the
forward-looking statements. Such factors may include, but are not
limited to: the Company’s ability to remain qualified as a REIT;
the Company’s exposure to U.S. federal and state income tax law
changes, including changes to the REIT requirements; general
adverse economic and real estate conditions; macroeconomic and
geopolitical factors, including but not limited to inflationary
pressures, interest rate volatility, 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. To derive AFFO, we further
modify the NAREIT computation of FFO and Core FFO to include other
adjustments to GAAP net income related to non-cash revenues and
expenses such as straight-line rental revenue, non-cash
compensation, and other non-cash amortization, as well as adding
back the interest related to the 2025 Convertible Senior Notes, if
the effect is dilutive. Such items may cause short-term
fluctuations in net income but have no impact on operating cash
flows or long-term operating performance. We use AFFO as one
measure of our performance when we formulate corporate goals.
To derive Pro Forma EBITDA, GAAP net income or
loss attributable to the Company is adjusted to exclude 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 |
|
|
|
December 31, 2023 |
|
December 31,2022 |
|
ASSETS |
|
|
|
|
|
|
|
Real Estate: |
|
|
|
|
|
|
|
Land, at Cost |
|
$ |
222,232 |
|
|
$ |
233,930 |
|
|
Building and Improvements, at Cost |
|
|
559,389 |
|
|
|
530,029 |
|
|
Other Furnishings and Equipment, at Cost |
|
|
857 |
|
|
|
748 |
|
|
Construction in Process, at Cost |
|
|
3,997 |
|
|
|
6,052 |
|
|
Total Real Estate, at Cost |
|
|
786,475 |
|
|
|
770,759 |
|
|
Less, Accumulated Depreciation |
|
|
(52,012 |
) |
|
|
(36,038 |
) |
|
Real Estate—Net |
|
|
734,463 |
|
|
|
734,721 |
|
|
Land and Development Costs |
|
|
731 |
|
|
|
685 |
|
|
Intangible Lease Assets—Net |
|
|
97,109 |
|
|
|
115,984 |
|
|
Investment in Alpine Income Property Trust, Inc. |
|
|
39,445 |
|
|
|
42,041 |
|
|
Mitigation Credits |
|
|
1,044 |
|
|
|
1,856 |
|
|
Mitigation Credit Rights |
|
|
— |
|
|
|
725 |
|
|
Commercial Loans and Investments |
|
|
61,849 |
|
|
|
31,908 |
|
|
Cash and Cash Equivalents |
|
|
10,214 |
|
|
|
19,333 |
|
|
Restricted Cash |
|
|
7,605 |
|
|
|
1,861 |
|
|
Refundable Income Taxes |
|
|
246 |
|
|
|
448 |
|
|
Deferred Income Taxes—Net |
|
|
2,009 |
|
|
|
2,530 |
|
|
Other Assets |
|
|
34,953 |
|
|
|
34,453 |
|
|
Total Assets |
|
$ |
989,668 |
|
|
$ |
986,545 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
Accounts Payable |
|
$ |
2,758 |
|
|
$ |
2,544 |
|
|
Accrued and Other Liabilities |
|
|
18,373 |
|
|
|
18,028 |
|
|
Deferred Revenue |
|
|
5,200 |
|
|
|
5,735 |
|
|
Intangible Lease Liabilities—Net |
|
|
10,441 |
|
|
|
9,885 |
|
|
Long-Term Debt |
|
|
495,370 |
|
|
|
445,583 |
|
|
Total Liabilities |
|
|
532,142 |
|
|
|
481,775 |
|
|
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, 2,978,808 shares issued and
outstanding at December 31, 2023 and 3,000,000 shares issued and
outstanding at December 31, 2022 |
|
|
30 |
|
|
|
30 |
|
|
Common Stock – 500,000,000 shares authorized; $0.01 par value,
22,643,034 shares issued and outstanding at December 31, 2023; and
22,854,775 shares issued and outstanding at December 31,
2022 |
|
|
226 |
|
|
|
229 |
|
|
Additional Paid-In Capital |
|
|
168,435 |
|
|
|
172,471 |
|
|
Retained Earnings |
|
|
281,944 |
|
|
|
316,279 |
|
|
Accumulated Other Comprehensive Income |
|
|
6,891 |
|
|
|
15,761 |
|
|
Total Stockholders’ Equity |
|
|
457,526 |
|
|
|
504,770 |
|
|
Total Liabilities and Stockholders’ Equity |
|
$ |
989,668 |
|
|
$ |
986,545 |
|
|
|
|
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, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Properties |
|
$ |
26,290 |
|
|
$ |
19,628 |
|
|
$ |
96,663 |
|
|
$ |
68,857 |
|
|
Management Fee Income |
|
|
1,094 |
|
|
|
994 |
|
|
|
4,388 |
|
|
|
3,829 |
|
|
Interest Income From Commercial Loans and Investments |
|
|
1,119 |
|
|
|
841 |
|
|
|
4,084 |
|
|
|
4,172 |
|
|
Real Estate Operations |
|
|
1,382 |
|
|
|
1,067 |
|
|
|
3,984 |
|
|
|
5,462 |
|
|
Total Revenues |
|
|
29,885 |
|
|
|
22,530 |
|
|
|
109,119 |
|
|
|
82,320 |
|
| Direct Cost of Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Properties |
|
|
(7,572 |
) |
|
|
(6,421 |
) |
|
|
(28,455 |
) |
|
|
(20,364 |
) |
|
Real Estate Operations |
|
|
(847 |
) |
|
|
(553 |
) |
|
|
(1,723 |
) |
|
|
(2,493 |
) |
|
Total Direct Cost of Revenues |
|
|
(8,419 |
) |
|
|
(6,974 |
) |
|
|
(30,178 |
) |
|
|
(22,857 |
) |
| General and Administrative
Expenses |
|
|
(3,756 |
) |
|
|
(3,927 |
) |
|
|
(14,249 |
) |
|
|
(12,899 |
) |
| Provision for Impairment |
|
|
(148 |
) |
|
|
— |
|
|
|
(1,556 |
) |
|
|
— |
|
| Depreciation and
Amortization |
|
|
(11,359 |
) |
|
|
(8,454 |
) |
|
|
(44,173 |
) |
|
|
(28,855 |
) |
|
Total Operating Expenses |
|
|
(23,682 |
) |
|
|
(19,355 |
) |
|
|
(90,156 |
) |
|
|
(64,611 |
) |
| Gain (Loss) on Disposition of
Assets |
|
|
3,978 |
|
|
|
(11,770 |
) |
|
|
7,543 |
|
|
|
(7,042 |
) |
|
Other Gain (Loss) |
|
|
3,978 |
|
|
|
(11,770 |
) |
|
|
7,543 |
|
|
|
(7,042 |
) |
|
Total Operating Income (Loss) |
|
|
10,181 |
|
|
|
(8,595 |
) |
|
|
26,506 |
|
|
|
10,667 |
|
| Investment and Other Income |
|
|
3,283 |
|
|
|
7,046 |
|
|
|
1,987 |
|
|
|
776 |
|
| Interest Expense |
|
|
(6,198 |
) |
|
|
(3,899 |
) |
|
|
(22,359 |
) |
|
|
(11,115 |
) |
|
Income (Loss) Before Income Tax Benefit (Expense) |
|
|
7,266 |
|
|
|
(5,448 |
) |
|
|
6,134 |
|
|
|
328 |
|
| Income Tax Benefit (Expense) |
|
|
(229 |
) |
|
|
2,369 |
|
|
|
(604 |
) |
|
|
2,830 |
|
|
Net Income (Loss) Attributable to the Company |
|
|
7,037 |
|
|
|
(3,079 |
) |
|
|
5,530 |
|
|
|
3,158 |
|
| Distributions to Preferred
Stockholders |
|
|
(1,187 |
) |
|
|
(1,195 |
) |
|
|
(4,772 |
) |
|
|
(4,781 |
) |
|
Net Income (Loss) Attributable to Common Stockholders |
|
$ |
5,850 |
|
|
$ |
(4,274 |
) |
|
$ |
758 |
|
|
$ |
(1,623 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Per Share Attributable to Common
Stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Net Income (Loss) per Share |
|
$ |
0.26 |
|
|
$ |
(0.21 |
) |
|
$ |
0.03 |
|
|
$ |
(0.09 |
) |
|
Diluted Net Income (Loss) Per Share |
|
$ |
0.25 |
|
|
$ |
(0.21 |
) |
|
$ |
0.03 |
|
|
$ |
(0.09 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted Average Number of Common
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
22,440,404 |
|
|
|
19,884,782 |
|
|
|
22,529,703 |
|
|
|
18,508,201 |
|
|
Diluted |
|
|
25,876,738 |
|
|
|
19,884,782 |
|
|
|
22,529,703 |
|
|
|
18,508,201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
$ |
1.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CTO Realty Growth, Inc. |
|
Non-GAAP Financial Measures |
|
Same-Property NOI Reconciliation |
|
(Unaudited) |
|
(In thousands) |
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, 2023 |
|
December 31, 2022 |
|
December 31,2023 |
|
December 31,2022 |
|
Net Income (Loss) Attributable to the Company |
$ |
7,037 |
|
|
$ |
(3,079 |
) |
|
$ |
5,530 |
|
|
$ |
3,158 |
|
|
Loss (Gain) on Disposition of Assets |
|
(3,978 |
) |
|
|
11,770 |
|
|
|
(7,543 |
) |
|
|
7,042 |
|
|
Provision for Impairment |
|
148 |
|
|
|
— |
|
|
|
1,556 |
|
|
|
— |
|
|
Depreciation and Amortization |
|
11,359 |
|
|
|
8,454 |
|
|
|
44,173 |
|
|
|
28,855 |
|
|
Amortization of Intangibles to Lease Income |
|
(510 |
) |
|
|
(676 |
) |
|
|
(2,303 |
) |
|
|
(2,161 |
) |
|
Straight-Line Rent Adjustment |
|
240 |
|
|
|
521 |
|
|
|
1,159 |
|
|
|
2,166 |
|
|
COVID-19 Rent Repayments |
|
— |
|
|
|
(26 |
) |
|
|
(46 |
) |
|
|
(105 |
) |
|
Accretion of Tenant Contribution |
|
13 |
|
|
|
40 |
|
|
|
128 |
|
|
|
154 |
|
|
Interest Expense |
|
6,198 |
|
|
|
3,899 |
|
|
|
22,359 |
|
|
|
11,115 |
|
|
General and Administrative Expenses |
|
3,756 |
|
|
|
3,927 |
|
|
|
14,249 |
|
|
|
12,899 |
|
|
Investment and Other Income |
|
(3,283 |
) |
|
|
(7,046 |
) |
|
|
(1,987 |
) |
|
|
(776 |
) |
|
Income Tax (Benefit) Expense |
|
229 |
|
|
|
(2,369 |
) |
|
|
604 |
|
|
|
(2,830 |
) |
|
Real Estate Operations Revenues |
|
(1,382 |
) |
|
|
(1,067 |
) |
|
|
(3,984 |
) |
|
|
(5,462 |
) |
|
Real Estate Operations Direct Cost of Revenues |
|
847 |
|
|
|
553 |
|
|
|
1,723 |
|
|
|
2,493 |
|
|
Management Fee Income |
|
(1,094 |
) |
|
|
(994 |
) |
|
|
(4,388 |
) |
|
|
(3,829 |
) |
|
Interest Income from Commercial Loans and Investments |
|
(1,119 |
) |
|
|
(841 |
) |
|
|
(4,084 |
) |
|
|
(4,172 |
) |
|
Other Non-Recurring Items |
|
(1,122 |
) |
|
|
— |
|
|
|
(1,122 |
) |
|
|
— |
|
|
Less: Impact of Properties Not Owned for the Full Reporting
Period |
|
(6,361 |
) |
|
|
(2,584 |
) |
|
|
(31,483 |
) |
|
|
(13,156 |
) |
| Same-Property NOI |
$ |
10,978 |
|
|
$ |
10,482 |
|
|
$ |
34,541 |
|
|
$ |
35,391 |
|
| |
|
CTO Realty Growth, Inc. |
|
Non-GAAP Financial Measures |
|
(Unaudited) |
|
(In thousands, except per share data) |
|
|
| |
|
Three Months Ended |
|
Year Ended |
|
|
|
December 31, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
|
Net Income (Loss) Attributable to the Company |
|
$ |
7,037 |
|
|
$ |
(3,079 |
) |
|
$ |
5,530 |
|
|
$ |
3,158 |
|
|
Add Back: Effect of Dilutive Interest Related to 2025 Notes
(1) |
|
|
539 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Net Income Attributable to the
Company, If-Converted |
|
$ |
7,576 |
|
|
$ |
(3,079 |
) |
|
|
5,530 |
|
|
|
3,158 |
|
|
Depreciation and Amortization of Real Estate |
|
|
11,338 |
|
|
|
8,440 |
|
|
|
44,107 |
|
|
|
28,799 |
|
|
Loss (Gain) on Disposition of Assets, Net of Income Tax |
|
|
(3,978 |
) |
|
|
8,898 |
|
|
|
(7,543 |
) |
|
|
4,170 |
|
|
Gain on Disposition of Other Assets |
|
|
(533 |
) |
|
|
(519 |
) |
|
|
(2,272 |
) |
|
|
(2,992 |
) |
|
Provision for Impairment |
|
|
148 |
|
|
|
— |
|
|
|
1,556 |
|
|
|
— |
|
|
Realized and Unrealized Loss (Gain) on Investment Securities |
|
|
(1,974 |
) |
|
|
(6,405 |
) |
|
|
3,689 |
|
|
|
1,697 |
|
|
Extinguishment of Contingent Obligation |
|
|
(515 |
) |
|
|
— |
|
|
|
(2,815 |
) |
|
|
— |
|
| Funds from Operations |
|
$ |
12,062 |
|
|
$ |
7,335 |
|
|
$ |
42,252 |
|
|
$ |
34,832 |
|
|
Distributions to Preferred Stockholders |
|
|
(1,187 |
) |
|
|
(1,195 |
) |
|
|
(4,772 |
) |
|
|
(4,781 |
) |
| Funds From Operations
Attributable to Common Stockholders |
|
$ |
10,875 |
|
|
$ |
6,140 |
|
|
$ |
37,480 |
|
|
$ |
30,051 |
|
|
Amortization of Intangibles to Lease Income |
|
|
510 |
|
|
|
676 |
|
|
|
2,303 |
|
|
|
2,161 |
|
|
Less: Effect of Dilutive Interest Related to 2025 Notes (1) |
|
|
(539 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Core Funds From Operations
Attributable to Common Stockholders |
|
$ |
10,846 |
|
|
$ |
6,816 |
|
|
$ |
39,783 |
|
|
$ |
32,212 |
|
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Straight-Line Rent Adjustment |
|
|
(240 |
) |
|
|
(521 |
) |
|
|
(1,159 |
) |
|
|
(2,166 |
) |
|
COVID-19 Rent Repayments |
|
|
— |
|
|
|
26 |
|
|
|
46 |
|
|
|
105 |
|
|
Other Depreciation and Amortization |
|
|
1 |
|
|
|
(33 |
) |
|
|
(91 |
) |
|
|
(232 |
) |
|
Amortization of Loan Costs, Discount on Convertible Debt, and
Capitalized Interest |
|
|
185 |
|
|
|
264 |
|
|
|
821 |
|
|
|
774 |
|
|
Non-Cash Compensation |
|
|
871 |
|
|
|
809 |
|
|
|
3,673 |
|
|
|
3,232 |
|
| Adjusted Funds From Operations
Attributable to Common Stockholders |
|
$ |
11,663 |
|
|
$ |
7,361 |
|
|
$ |
43,073 |
|
|
$ |
33,925 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| FFO Attributable to Common
Stockholders per Common Share – Diluted |
|
$ |
0.42 |
|
|
$ |
0.31 |
|
|
$ |
1.66 |
|
|
$ |
1.62 |
|
| Core FFO Attributable to
Common Stockholders per Common Share – Diluted |
|
$ |
0.48 |
|
|
$ |
0.34 |
|
|
$ |
1.77 |
|
|
$ |
1.74 |
|
| AFFO Attributable to Common
Stockholders per Common Share – Diluted |
|
$ |
0.52 |
|
|
$ |
0.37 |
|
|
$ |
1.91 |
|
|
$ |
1.83 |
|
|
(1) |
|
For the three months ended December 31, 2022 and the years ended
December 31, 2023 and 2022, interest related to the 2025
Convertible Senior Notes was excluded from net income attributable
to the Company to derive FFO effective January 1, 2023 due to the
implementation of ASU 2020-06 which requires presentation on an
if-converted basis, as the impact to net income(loss) attributable
to common stockholders would be anti-dilutive. 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 Measures |
|
Reconciliation of Net Debt to Pro Forma
EBITDA |
|
(Unaudited) |
|
(In thousands) |
|
|
|
|
Three Months Ended December 31, 2023 |
|
Net Income Attributable to the Company |
$ |
7,037 |
|
|
Depreciation and Amortization of Real Estate |
|
11,338 |
|
|
Gain on Disposition of Assets |
|
(3,978 |
) |
|
Gain on Disposition of Other Assets |
|
(533 |
) |
|
Provision for Impairment |
|
148 |
|
|
Realized and Unrealized Gain on Investment Securities |
|
(1,974 |
) |
|
Extinguishment of Contingent Obligation |
|
(515 |
) |
|
Distributions to Preferred Stockholders |
|
(1,187 |
) |
|
Straight-Line Rent Adjustment |
|
(240 |
) |
|
Amortization of Intangibles to Lease Income |
|
510 |
|
|
Other Depreciation and Amortization |
|
1 |
|
|
Amortization of Loan Costs, Discount on Convertible Debt, and
Capitalized Interest |
|
185 |
|
|
Non-Cash Compensation |
|
871 |
|
|
Other Non-Recurring Items |
|
(1,122 |
) |
|
Interest Expense, Net of Amortization of Loan Costs and Discount on
Convertible Debt |
|
6,013 |
|
| EBITDA |
$ |
16,554 |
|
|
|
|
|
| Annualized EBITDA |
$ |
66,216 |
|
|
Pro Forma Annualized Impact of Current Quarter Acquisitions and
Dispositions, Net (1) |
|
(3,071 |
) |
| Pro Forma EBITDA |
$ |
63,145 |
|
| |
|
|
| Total Long-Term Debt |
$ |
495,370 |
|
|
Financing Costs, Net of Accumulated Amortization |
|
1,260 |
|
|
Unamortized Convertible Debt Discount |
|
204 |
|
|
Cash & Cash Equivalents |
|
(10,214 |
) |
|
Restricted Cash |
|
(7,605 |
) |
| Net Debt |
$ |
479,015 |
|
| |
|
|
| Net Debt to Pro Forma
EBITDA |
|
7.6x |
| |
|
|
|
(1) |
|
Reflects the pro forma annualized impact on Annualized EBITDA of
the Company’s acquisition and disposition activity during the three
months ended December 31, 2023. |
Contact:Matthew M. PartridgeSenior Vice
President, Chief Financial Officer, and Treasurer(407)
904-3324mpartridge@ctoreit.com
Grafico Azioni CTO Realty Growth (NYSE:CTO)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni CTO Realty Growth (NYSE:CTO)
Storico
Da Dic 2023 a Dic 2024
