CTO Realty Growth Inc is a Florida-based real estate investment trust company, that owns income properties comprised of approximately 2.7 million square feet in diversified markets in the United States. Its portfolio of assets consists of Income Properties Portfolio, management services, Commercial Loan and Investments.
Quarterly Financial Performance
CTO Realty Growth Inc (CTO, Financial) reported a net loss per diluted share attributable to common stockholders of $(0.03) for the quarter ended June 30, 2024, beating the analyst estimate of -$0.07. However, the company reported revenue of $27.41 million, meeting the analyst estimate.
Key financial highlights for Q2 2024 include:
| Metric | Q2 2024 | Q2 2023 | Variance |
|---|---|---|---|
| Net Income Attributable to the Company | $1,183 | $1,800 | (34.3%) |
| Net Income (Loss) Attributable to Common Stockholders | $(688) | $605 | (213.7%) |
| Core FFO Attributable to Common Stockholders | $10,353 | $9,608 | 7.8% |
| AFFO Attributable to Common Stockholders | $11,051 | $10,781 | 2.5% |
Financial Achievements and Challenges
CTO Realty Growth Inc (CTO, Financial) reported Core FFO per diluted share of $0.45 and AFFO per diluted share of $0.48 for Q2 2024. The company also received net proceeds of $33.1 million from a follow-on public offering of its Series A Cumulative Redeemable Preferred Stock and $4.3 million from the issuance of common shares under its ATM offering program.
Despite these achievements, the company faced challenges, including a net loss attributable to common stockholders and a decrease in net income compared to the same period last year. These challenges highlight the volatility and risks associated with the real estate investment trust (REIT) industry.
Income Statement and Balance Sheet Highlights
CTO Realty Growth Inc (CTO, Financial) reported an increase in Same-Property NOI of 2.0% compared to Q2 2023 and a 4.0% increase for the six months ended June 30, 2024. The company signed 16 leases totaling 78,593 square feet during the quarter, with an 8.8% leasing spread on comparable leases.
As of June 30, 2024, the company had approximately $155 million of total liquidity, including $150 million of undrawn commitments on its Revolving Credit Facility. The company's net debt to Pro Forma EBITDA was 7.5 times, and its fixed charge coverage ratio was 2.7 times.
CEO Commentary
"We are pleased that our strong leasing results over the past year are starting to deliver meaningful Same-Property NOI growth, including an increase of 4% for the first half of the year," said John P. Albright, President and Chief Executive Officer of CTO Realty Growth. "Given our solid earnings and increased investment activity outlook, we have increased our full-year Core FFO and AFFO guidance by 11.9% and 11.0%, respectively, at the mid-points of the ranges, and are looking forward to an active second half of 2024."
Investment and Disposition Activities
During Q2 2024, CTO Realty Growth Inc (CTO, Financial) invested $1.5 million into 1.4 acres of land for future development and $72.5 million into two retail properties and one vacant land parcel. The company also received $15.2 million as an early repayment of its Sabal Pavilion seller-financing loan and sold one retail property for $20.0 million, generating a gain of $4.6 million.
Outlook and Guidance
CTO Realty Growth Inc (CTO, Financial) has increased its full-year Core FFO guidance to $1.81 to $1.86 per diluted share and full-year AFFO guidance to $1.95 to $2.00 per diluted share, representing increases of 11.9% and 11.0%, respectively, at the midpoint of these ranges.
For more detailed information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from CTO Realty Growth Inc for further details.
