CTO Realty Growth, Inc. (CTO) Bundle
A Brief History of CTO Realty Growth, Inc.
Company Overview
CTO Realty Growth, Inc. (CTO) is a real estate investment trust (REIT) focused on the ownership, operation, and management of income-producing properties, primarily in the retail and commercial sectors. As of September 30, 2024, CTO's portfolio consists of various multi-tenant income properties across the United States.
Financial Performance
For the nine months ended September 30, 2024, CTO reported total revenue of $88.8 million, reflecting a 12.0% increase from $79.2 million in the same period of 2023. The revenue breakdown is as follows:
| Operating Segment | September 30, 2024 (in thousands) | September 30, 2023 (in thousands) | Variance (in thousands) | % Variance |
|---|---|---|---|---|
| Income Properties | $79,029 | $70,373 | $8,656 | 12.3% |
| Management Services | $3,360 | $3,294 | $66 | 2.0% |
| Commercial Loans and Investments | $4,407 | $2,965 | $1,442 | 48.6% |
| Real Estate Operations | $1,981 | $2,602 | ($621) | (23.9%) |
| Total Revenue | $88,777 | $79,234 | $9,543 | 12.0% |
Acquisitions and Investments
During the nine months ended September 30, 2024, CTO acquired four multi-tenant income properties and one vacant land parcel for a total acquisition cost of $207.8 million. Key acquisitions include:
- The Three Property Portfolio for $137.5 million, comprising shopping centers in North Carolina, Florida, and Texas.
- The Marketplace at Seminole Towne Center for $68.8 million, located in Sanford, Florida.
- A building within an existing multi-tenant income property for $2.3 million in Buford, Georgia.
- A vacant land parcel for future development for $1.5 million in Richmond, Virginia.
Sales and Dispositions
CTO sold two income properties during the nine months ending September 30, 2024, for an aggregate sales price of $38.0 million, resulting in gains of $3.8 million. In comparison, during the same period in 2023, three properties were sold for $22.9 million with gains of $3.3 million.
Debt and Liquidity
As of September 30, 2024, CTO had a total long-term debt of $528.8 million, with an average interest rate of 4.28%. The current commitment level under the Credit Facility was $300 million, with a balance outstanding of $95 million. Cash and cash equivalents totaled $8.2 million, and restricted cash stood at $1.7 million.
| Debt Type | Face Value (in thousands) | Maturity Date | Interest Rate |
|---|---|---|---|
| Credit Facility | $95,000 | January 2027 | SOFR + 0.10% + [1.25% - 2.20%] (5.82%) |
| 2026 Term Loan | $65,000 | March 2026 | SOFR + 0.10% + [1.25% - 2.20%] (2.72%) |
| 2027 Term Loan | $100,000 | January 2027 | SOFR + 0.10% + [1.25% - 2.20%] (2.80%) |
| 2028 Term Loan | $100,000 | January 2028 | SOFR + 0.10% + [1.20% - 2.15%] (5.18%) |
| 2029 Term Loan | $100,000 | September 2029 | SOFR + 0.10% + [1.20% - 2.15%] (4.68%) |
Stockholder Equity
As of September 30, 2024, CTO reported stockholders' equity of $595.8 million, reflecting an increase from $478.1 million as of September 30, 2023. Key components of stockholders' equity include:
- Common Stock: $300,000
- Additional Paid-In Capital: $334.5 million
- Retained Earnings: $261.4 million
- Accumulated Other Comprehensive Income (Loss): ($405,000)
Recent Developments
In April 2024, CTO completed a public offering of 1,500,000 shares of its 6.375% Series A Cumulative Redeemable Preferred Stock, generating net proceeds of $33.1 million. Additionally, CTO implemented an "at-the-market" preferred stock equity offering program with an availability of $24.5 million as of September 30, 2024.
CTO's strategic focus remains on enhancing its portfolio through selective acquisitions while managing its debt levels effectively to ensure liquidity and financial stability.
A Who Owns CTO Realty Growth, Inc. (CTO)
Major Shareholders
As of September 30, 2024, CTO Realty Growth, Inc. (CTO) has the following major shareholders:
| Shareholder | Ownership Percentage | Number of Shares |
|---|---|---|
| CTO Realty Growth, Inc. Executive Management | 5.2% | 1,325,000 |
| Institutional Investors | 48.7% | 12,250,000 |
| Retail Investors | 46.1% | 11,500,000 |
Investment in PINE
CTO Realty Growth, Inc. has significant investments in PINE, which include:
- 1,223,854 Operating Partnership (OP) Units.
- 1,138,621 shares of PINE common stock.
- Investment value totaling $43.0 million, representing 15.3% of PINE’s outstanding equity.
Recent Stock Performance
As of September 30, 2024, CTO Realty Growth, Inc.'s stock performance is as follows:
| Metric | Value |
|---|---|
| Current Share Price | $18.57 |
| Market Capitalization | $619.1 million |
| 52-Week High | $22.00 |
| 52-Week Low | $15.50 |
Financial Overview
CTO Realty Growth reported the following financial metrics for the nine months ended September 30, 2024:
| Financial Metric | Value (in thousands) |
|---|---|
| Total Revenue | $31,805 |
| Net Income | $13,252 |
| Total Assets | $595,782 |
| Total Liabilities | $334,467 |
| Stockholders' Equity | $261,373 |
Dividend Distribution
CTO Realty Growth, Inc. has declared dividends as follows:
- Common Stock Dividends Declared: $11,245,000 for Q3 2024.
- Preferred Stock Dividends Declared: $1,878,000 for Q3 2024.
Ownership Changes
Significant changes in ownership and share repurchase activities include:
- Authorized repurchase program of $10 million for common stock.
- Completed purchases of PINE common stock totaling $2.1 million in 2023.
Debt and Financing
As of September 30, 2024, CTO Realty Growth, Inc. reported the following debt metrics:
| Debt Metric | Value (in millions) |
|---|---|
| Outstanding Credit Facility | $95.0 |
| Available Credit Facility | $205.0 |
| Total Long-Term Debt | $300.0 |
CTO Realty Growth, Inc. (CTO) Mission Statement
Overview of Mission Statement
CTO Realty Growth, Inc. operates with a clear mission to focus on the ownership, management, and repositioning of high-quality retail and mixed-use properties in fast-growing markets. The company emphasizes business-friendly environments with favorable tax policies and significant job and population growth, aiming to meet retail demand effectively.
Core Values and Objectives
- Quality Investments: CTO prioritizes high-quality properties that can provide stable cash flows.
- Growth Markets: The company targets metropolitan areas and growth markets to maximize investor returns.
- Operational Excellence: CTO is committed to maintaining high operational standards in property management.
- Shareholder Value: The focus is on delivering long-term value to shareholders through strategic acquisitions and management practices.
Financial Performance Metrics
| Metric | Q3 2024 | Q3 2023 | Variance |
|---|---|---|---|
| Total Revenue | $31.8 million | $28.5 million | +11.5% |
| Net Income (Loss) | $13.3 million | ($1.5 million) | +$14.8 million |
| Operating Income | $4.96 million | $7.69 million | -35.4% |
| Cash Flows from Operating Activities | $45.8 million | $39.9 million | +5.9 million |
| Total Assets | $1.18 billion | $989.7 million | +19.1% |
| Total Liabilities | $580.3 million | $532.1 million | +9.1% |
| Total Stockholders' Equity | $595.8 million | $457.5 million | +30.2% |
Investment Strategy
CTO Realty Growth, Inc. employs a multi-faceted investment strategy focusing on:
- Acquisition of multi-tenant retail properties.
- Investment in commercial loans and preferred equity.
- Management of a diversified portfolio to ensure steady cash flow.
Recent Acquisitions and Dispositions
In the nine months ending September 30, 2024, CTO made significant transactions:
- Acquisitions: Total acquisition cost of $207.8 million for four multi-tenant income properties.
- Dispositions: Sold two income properties for an aggregate sales price of $38.0 million with gains of $3.8 million.
Market Position and Competition
CTO Realty Growth, Inc. is positioned as a leading player in the retail real estate sector, competing with other REITs in acquiring high-quality assets in attractive markets. The company's strategy is to leverage its operational expertise and market knowledge to outperform competitors.
Future Outlook
CTO has guided for 2024 investments in income-producing properties ranging from $300 million to $350 million. The company aims to fund future acquisitions through:
- Cash on hand and cash from operations.
- Proceeds from dispositions of income properties.
- Borrowings on its Credit Facility.
CTO Realty Growth, Inc. remains focused on maximizing returns for its shareholders while navigating the changing retail landscape and economic conditions.
How CTO Realty Growth, Inc. (CTO) Works
Overview of Operations
CTO Realty Growth, Inc. (CTO) operates primarily in the commercial real estate sector, focusing on acquiring, managing, and leasing income-producing properties. As of September 30, 2024, the company owns 16 multi-tenant properties and 6 single-tenant income properties, with a total annualized revenue generation of approximately $85.8 million from multi-tenant properties and $5.6 million from single-tenant properties.
Financial Performance
For the three months ended September 30, 2024, CTO reported total revenues of $31.8 million, a 11.7% increase from $28.5 million for the same period in 2023. The breakdown of revenues is as follows:
| Operating Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | $ Variance (in thousands) | % Variance |
|---|---|---|---|---|
| Income Properties | 28,528 | 25,183 | 3,345 | 13.3% |
| Management Services | 1,124 | 1,094 | 30 | 2.7% |
| Commercial Loans and Investments | 1,615 | 1,114 | 501 | 45.0% |
| Real Estate Operations | 538 | 1,079 | (541) | (50.1%) |
| Total Revenue | 31,805 | 28,470 | 3,335 | 11.7% |
For the nine months ended September 30, 2024, total revenue increased to $88.8 million from $79.2 million during the same period in 2023, reflecting a 12.0% increase. The following table summarizes the revenue by segment:
| Operating Segment | 9M 2024 Revenue (in thousands) | 9M 2023 Revenue (in thousands) | $ Variance (in thousands) | % Variance |
|---|---|---|---|---|
| Income Properties | 79,029 | 70,373 | 8,656 | 12.3% |
| Management Services | 3,360 | 3,294 | 66 | 2.0% |
| Commercial Loans and Investments | 4,407 | 2,965 | 1,442 | 48.6% |
| Real Estate Operations | 1,981 | 2,602 | (621) | (23.9%) |
| Total Revenue | 88,777 | 79,234 | 9,543 | 12.0% |
Income and Expenses
Net income attributable to the company for the three months ended September 30, 2024, was $6.2 million, compared to $2.7 million in 2023. For the nine months ended September 30, 2024, net income rose to $13.3 million from a loss of $1.5 million in the prior year.
General and administrative expenses for the three months ended September 30, 2024, totaled $4.1 million, an 18.5% increase from $3.4 million in 2023. The breakdown of general and administrative expenses is as follows:
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | $ Variance (in thousands) | % Variance |
|---|---|---|---|---|
| Recurring General and Administrative Expenses | 3,325 | 2,571 | 754 | 29.3% |
| Non-Cash Stock Compensation | 750 | 868 | (118) | (13.6%) |
| Total General and Administrative Expenses | 4,075 | 3,439 | 636 | 18.5% |
Acquisitions and Dispositions
During the nine months ended September 30, 2024, CTO acquired four multi-tenant income properties for a total purchase price of $210 million. This included:
- A portfolio of three open-air shopping centers for $137.5 million.
- The Marketplace at Seminole Towne Center for $68.7 million.
- A property within The Exchange at Gwinnett for $2.3 million.
- A vacant land parcel for $1.5 million.
Dispositions during the same period included two income properties sold for a total of $38 million, resulting in aggregate gains of $3.8 million.
Debt and Liquidity
At September 30, 2024, CTO had total cash and cash equivalents of $8.2 million and restricted cash of $1.7 million. The company also had a long-term debt balance of $95 million against a Credit Facility commitment of $300 million, with $205 million undrawn.
Cash flows provided by operating activities for the nine months ended September 30, 2024, were $45.8 million, an increase from $39.9 million in 2023. Cash used in investing activities totaled $215.3 million, up from $98.3 million in the prior year, primarily due to increased acquisition activity.
Interest expense for the nine months ended September 30, 2024, was $16.8 million, compared to $16.2 million in the previous year, reflecting higher fixed rates on loans.
Stockholder Equity
As of September 30, 2024, total stockholders' equity was $595.8 million, an increase from $457.5 million in 2023. The company declared dividends of $0.40 per share for preferred stock and $0.38 per share for common stock during the quarter.
How CTO Realty Growth, Inc. (CTO) Makes Money
Income Properties
CTO Realty Growth, Inc. generates a significant portion of its revenue from income properties. For the three months ended September 30, 2024, the total revenue from income properties was $28.5 million, compared to $25.2 million for the same period in 2023. The operating income from these properties was $20.7 million, up from $18.1 million year-over-year. The direct costs associated with these revenues were $7.8 million and $7.1 million for 2024 and 2023, respectively.
The leasing revenue breakdown for the three months ended September 30, 2024, is as follows:
| Category | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Lease Payments | $21,143 | $19,547 |
| Variable Lease Payments | $7,385 | $5,636 |
| Total Leasing Revenue | $28,528 | $25,183 |
Management Services
CTO also earns management fee income primarily from its management of PINE. For the three months ended September 30, 2024, management fee income was $1.1 million, consistent with the same period in 2023. For the nine months ended September 30, 2024, this income totaled $3.36 million, slightly up from $3.29 million in 2023.
Commercial Loans and Investments
Interest income from commercial loans and investments is another revenue source. For the three months ended September 30, 2024, this income was $1.6 million, compared to $1.1 million in 2023. For the nine months ended September 30, 2024, the interest income reached $4.4 million, up from $3.0 million.
Real Estate Operations
In real estate operations, CTO generated $0.54 million in revenue for the three months ended September 30, 2024, down from $1.08 million in the prior year. The decrease was attributed to reduced subsurface sales.
Financial Performance Overview
For the three months ended September 30, 2024, CTO reported total revenue of $31.8 million, an increase from $28.5 million in 2023. The breakdown of total revenue is as follows:
| Segment | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) |
|---|---|---|
| Income Properties | $28,528 | $25,183 |
| Management Services | $1,124 | $1,094 |
| Commercial Loans and Investments | $1,615 | $1,114 |
| Real Estate Operations | $538 | $1,079 |
| Total Revenue | $31,805 | $28,470 |
Net Income
Net income attributable to the company for the three months ended September 30, 2024, was $6.2 million, compared to $2.7 million for the same period in 2023.
Acquisitions and Investments
During the nine months ended September 30, 2024, CTO acquired four multi-tenant income properties and additional assets for a total purchase price of $210 million. Additionally, the company originated structured investments totaling $63.8 million.
Cash Flow and Financial Position
As of September 30, 2024, CTO had cash and cash equivalents totaling $8.2 million and restricted cash of $1.7 million. The cash flows provided by operating activities during the nine months were $45.8 million, compared to $39.9 million in 2023.
CTO's total stockholders' equity stood at $595.8 million as of September 30, 2024, up from $457.5 million a year earlier.
CTO Realty Growth, Inc. (CTO) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- CTO Realty Growth, Inc. (CTO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CTO Realty Growth, Inc. (CTO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CTO Realty Growth, Inc. (CTO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.