CTO Realty Growth (CTO) Q3 2024 earnings summary

Executive summary

• Portfolio expanded to 4.6 million sq. ft. across high-growth Southeast and Southwest MSAs, with 67% of ABR from Georgia, Texas, and Florida, and 22 properties in seven states as of September 30, 2024.

• Achieved strong Q3 with $191.3 million invested at a 9.5% yield, including three shopping centers in North Carolina and Florida, and significant leasing activity totaling over 200,000 sq ft at an average rent of $21.17 per sq ft.

• Disposed of Jordan Landing, resulting in a portfolio now fully concentrated in the Southeast and Southwest, and sold non-income producing mineral rights in Florida for $5 million.

• Externally manages Alpine Income Property Trust (PINE), holding a $43 million investment representing 15.3% of PINE's equity.

• Business includes income properties, management services, commercial loans and investments, and real estate operations.

Financial highlights

• Q3 2024 revenues were $31.8 million, up 11.7% year-over-year; net income attributable to common stockholders was $4.3 million ($0.17/share), up 191.7% YoY.

• Core FFO per diluted share was $0.50 (up 6.4% YoY); AFFO per diluted share was $0.51 (up 6.3% YoY); nine-month Core FFO was $1.43/share and AFFO was $1.52/share.

• Same-property NOI for Q3 2024 was $16.8 million, up 6.3% YoY.

• Issued 6.9 million shares at $18.63 per share, raising $125.7 million; closed a $100 million five-year term loan at a 4.68% fixed rate.

• Ended Q3 with net debt to EBITDA of 6.4x, net debt to total enterprise value of 43%, and over $200 million in liquidity.

Outlook and guidance

• Raised full-year 2024 Core FFO guidance to $1.83–$1.87 per diluted share and AFFO guidance to $1.96–$2.00 per diluted share.

• Increased investment guidance to $300 million–$350 million for 2024; disposition target: $35 million–$50 million.

• Year-end leased occupancy expected at 96%–97%; same-property NOI growth projected at 4%–6%.