CTO Realty Growth Reveals Operating Results for Q3 2024
CTO Realty Growth, Inc. (NYSE: CTO) has shared its operating results for the quarter that ended on September 30, 2024, showcasing solid financial performance and strategic advancements.
Highlights from the Third Quarter
During the third quarter, CTO Realty Growth reported several notable achievements:
- Net income attributable to common stockholders reached $0.17 per diluted share.
- Core Funds from Operations (FFO) were $0.50 per diluted share, showing a 6.4% increase compared to the same period last year.
- Adjusted Funds from Operations (AFFO) saw a growth of 6.3%, coming in at $0.51 per diluted share.
- The company raised $125.7 million through its common stock ATM offering program.
- A new 5-year unsecured term loan of $100 million was closed at an initial effective interest rate of 4.7%.
- Liquidity stood strong at $213 million as of September 30, 2024.
- CTO Realty Growth's total investments amounted to $191.3 million, with property acquisitions and structured investments achieving a weighted average yield of 9.5%.
- The company successfully sold one property for $18 million at a cap rate of 9.2%.
- Same-Property Net Operating Income (NOI) increased by 6.3%, totaling $16.8 million.
- In its signed-not-open pipeline, the company holds $6.5 million, representing 7.3% of the annual cash base rent effective as of the end of September.
- Core FFO guidance for the full year was raised to between $1.83 and $1.87 per diluted share.
- Likewise, the full-year AFFO guidance was increased to a range of $1.96 to $2.00 per diluted share.
Management’s Insights
In a statement regarding the quarter, John P. Albright, the President and CEO of CTO Realty Growth, expressed satisfaction with the company’s progress. He highlighted the growth experienced due to strategic acquisitions in high-quality retail centers and the origination of a substantial mortgage development loan, noting the disciplined funding strategy through the ATM offering.
Financial Results Overview
The financial results for the third quarter ended September 30, 2024, were remarkable:
- Net income attributable to the company for the quarter was $6,227,000, a significant increase from $2,686,000 in the previous year.
- Core FFO attributable to common stockholders totaled $12,633,000 compared to $10,462,000 in the third quarter of 2023.
- AFFO attributable to common stockholders stood at $13,142,000, moving up from $10,766,000 year-over-year.
Investment Activities
In the latest quarter, CTO Realty Growth invested $191.3 million in various projects, achieving an impressive weighted average yield of 9.5%. Key transactions included:
- Acquisition of three open-air shopping centers valued at $137.5 million.
- Origination of a $43.8 million first mortgage loan for a prime mixed-use development site.
- A preferred equity investment of $10 million in a subsidiary of a hospitality and entertainment company.
Portfolio Management
As of September 30, 2024, CTO’s property portfolio had seen various developments:
- Leased occupancy rates were recorded at an impressive 95.8%.
- The average remaining lease term across the portfolio was 4.9 years.
- Same-Property NOI for the current quarter illustrated a robust performance, indicating the health and profitability of the core property holdings.
Looking Ahead
For the coming year, CTO Realty Growth is navigating the market with a revised outlook, anticipating stable economic conditions and ongoing tenant business trends. The growth trajectory encouraged revision of the company's Core FFO and AFFO forecasts to better reflect operational performance and acquisition strategies.
Frequently Asked Questions
What are the key financial highlights for CTO Realty Growth in Q3 2024?
CTO Realty Growth reported a net income of $6.2 million and an increase in core FFO of 6.4% to $0.50 per diluted share.
How much liquidity does CTO have as of the end of September 2024?
The company reported a strong liquidity position of $213 million.
What investments did CTO Realty Growth engage in during Q3 2024?
CTO invested $191.3 million in projects, including acquisitions and a mortgage loan, with a weighted average yield of 9.5%.
What is the current occupancy rate of CTO's property portfolio?
CTO's leased occupancy rate is reported at 95.8%.
What is the outlook for CTO Realty Growth in 2024?
The company expects stable economic conditions and has revised its FFO guidance for 2024 upwards, incorporating insights from the year-to-date performance.
