Q1 2024 CTO Realty Growth Inc Earnings Call Transcript
Key Points
- CTO Realty Growth Inc reported strong leasing activity with over 100,000 square feet of new leases, renewals, options, and extensions at an average rent of $27.12 per square foot.
- The company successfully replaced Regal Cinemas with a regional fitness operator at a significantly higher rent, which is expected to boost same-store NOI in 2024 and more so in 2025.
- Occupancy rates improved, ending the quarter at 92.6%, a 2.3% increase from year-end 2023, with lease occupancy also up by 1% to 94.3%.
- CTO Realty Growth Inc's earnings for Q1 2024 exceeded expectations, with core FFO per share at $0.48, representing a 23% increase compared to Q1 2023.
- The company made strategic acquisitions, including a multi-tenanted retail power center in Orlando, enhancing its presence in top markets and increasing its annual cash base rent in Florida to over 17%.
- The departure of CFO Matt Partridge introduces a period of transition and potential uncertainty as the company searches for a replacement.
- Despite strong leasing activity, the full financial benefits of new leases, such as the fitness operator replacing Regal Cinemas, will not materialize until mid-2025.
- CTO Realty Growth Inc's net debt to EBITDA ratio stands at 7.6 times, indicating a relatively high level of debt compared to earnings before interest, taxes, depreciation, and amortization.
- The company reduced its disposition guidance for the year, which may suggest a slower pace of capital recycling and potential missed opportunities for reinvestment.
- There are ongoing uncertainties in the office asset segment, with significant discussions and decisions regarding the remaining office asset pushed beyond 2024.
Good day and thank you for standing by, and welcome to the CTO Q1 2024 earnings conference call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session to ask a question. During the session, you will need to press star one one on your telephone. You will then hear an automated message. Advising your hand is raised. To withdraw your question, please press star one one. Again.
Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker for today, Lisa American. Please go ahead.
Good morning, everyone, and thank you for joining us today for the CTO Realty Growth First Quarter 2024 operating results conference call. With me today is our CEO and President, John Albright.
Before we begin, I'd like to remind everyone that many of our comments today are considered forward-looking statements under federal securities law.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
