WINTER PARK, Fla., July 25, 2024 (GLOBE NEWSWIRE) -- CTO Realty Growth, Inc. (NYSE:CTO) (the "Company" or "CTO") today announced its operating results and earnings for the quarter ended June 30, 2024. Second Quarter and Recent Highlights Reported Net Loss per diluted share attributable to common stockholders of $(0.03) for the quarter ended June 30, 2024. Reported Core FFO per diluted share attributable to common stockholders of $0.45 for the quarter ended June 30, 2024. Reported AFFO per diluted share attributable to common stockholders of $0.48 for the quarter ended June 30, 2024. Received net proceeds of $33.1 million from the completion of a follow-on public offering of 1,718,417 shares of the Company's 6.375% Series A Cumulative Redeemable Preferred Stock. Received net proceeds of $4.3 million from the issuance of 248,960 common shares under the Company's ATM offering program. Received proceeds of $15.2 million as an early repayment of our Sabal Pavilion seller-financing loan. The Company has approximately $155 million of total liquidity as of June 30, 2024, including $150 million of undrawn commitments on our Revolving Credit Facility. Reported an increase in Same-Property NOI of 2.0% as compared to the second quarter of 2023 and an increase of 4.0% for the six months ended June 30, 2024, as compared to the same period of 2023.  Signed not open pipeline represents $4.7 million, or 5.9%, of annual cash base rent in place as of June 30, 2024. Increased 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. CEO Comments "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. "The strength of our leasing continued this quarter with an 8.8% leasing spread on comparable leases. 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." Quarterly Financial Results Highlights The table below provides a summary of the Company's operating results for the three months ended June 30, 2024:     Three Months Ended       (in thousands, except per share data) June 30,2024   June 30,2023   Variance to ComparablePeriod in the Prior Year   Net Income Attributable to the Company $ 1,183     $ 1,800     $ (617 )     (34.3 )%   Net Income (Loss) Attributable to CommonStockholders $ (688 )   $ 605     $ (1,293 )     (213.7 )%   Net Income (Loss) Attributable to CommonStockholders per Common Share - Diluted (1) $ (0.03 )   $ 0.03     $ (0.06 )     (200.0 )%                                       Core FFO Attributable to Common Stockholders (2) $ 10,353     $ 9,608     $ 745       7.8  %   Core FFO Attributable to Common Stockholdersper Common Share - Diluted (2) $ 0.45     $ 0.43     $ 0.02       4.7  %                                       AFFO Attributable to Common Stockholders (2) $ 11,051     $ 10,781     $ 270       2.5  %   AFFO Attributable to Common Stockholdersper Common Share - Diluted (2) $ 0.48     $ 0.48     $ —       0.0  %                                       Dividends Declared and Paid - Preferred Stock $ 0.40     $ 0.40     $ —       0.0  %   Dividends Declared and Paid - Common Stock $ 0.38     $ 0.38     $ —       0.0  %                                       (1) The denominator for this measure excludes the impact of 3.6 million and 3.3 million shares for the three months ended June 30, 2024 and 2023, respectively, related to the Company's adoption of ASU 2020-06, effective January 1, 2022, which requires presentation on an if-converted basis for its 2025 Convertible Senior Notes, as the impact would be anti-dilutive.   (2) See the "Non-GAAP Financial Measures" section and tables at the end of this press release for a discussion and reconciliation of Net Income (Loss) Attributable to the Company to non-GAAP financial measures, including FFO Attributable to Common Stockholders, FFO Attributable to Common Stockholders per Common Share - Diluted, Core FFO Attributable to Common Stockholders, Core FFO Attributable to Common Stockholders per Common Share - Diluted, AFFO Attributable to Common Stockholders, and AFFO Attributable to Common Stockholders per Common Share - Diluted. Further, the weighted average shares used to compute per share amounts for Core FFO Attributable to Common Stockholders per Common Share - Diluted and AFFO Attributable to Common Stockholders per Common Share - Diluted do not reflect any dilution related to the ultimate settlement of the 2025 Convertible Senior Notes.         Year-to-Date Financial Results Highlights The table below provides a summary of the Company's operating results for the six months ended June 30, 2024:     Six Months Ended     (in thousands, except per share data) June 30,2024     June 30,2023   Variance to ComparablePeriod in the Prior Year   Net Income (Loss) Attributable to the Company $ 7,025     $ (4,193 )     $ 11,218     267.5 %   Net Income (Loss) Attributable to CommonStockholders $ 3,967     $ (6,583 )     $ 10,550     160.3 %   Net Income (Loss) Attributable to CommonStockholders per Common Share - Diluted (1) $ 0.17     $ (0.29 )     $ 0.46     158.6 %                                       Core FFO Attributable to Common Stockholders (2) $ 21,090     $ 18,475       $ 2,615     14.2 %   Core FFO Attributable to Common Stockholdersper Common Share - Diluted (2) $ 0.93     $ 0.82       $ 0.11     13.4 %                                       AFFO Attributable to Common Stockholders (2) $ 22,699     $ 20,644       $ 2,055     10.0 %   AFFO Attributable to Common Stockholders perCommon Share - Diluted (2) $ 1.00     $ 0.91       $ 0.09     9.9 %                                       Dividends Declared and Paid - Preferred Stock $ 0.80     $ 0.80       $ —     0.0 %   Dividends Declared and Paid - Common Stock $ 0.76     $ 0.76       $ —     0.0 %         (1) The denominator for this measure excludes the impact of 3.6 million and 3.3 million shares for the six months ended June 30, 2024 and 2023, respectively, related to the Company's adoption of ASU 2020-06, effective January 1, 2022, which requires presentation on an if-converted basis for its 2025 Convertible Senior Notes, as the impact would be anti-dilutive.   (2) See the "Non-GAAP Financial Measures" section and tables at the end of this press release for a discussion and reconciliation of Net Income (Loss) Attributable to the Company to non-GAAP financial measures, including FFO Attributable to Common Stockholders, FFO Attributable to Common Stockholders per Common Share - Diluted, Core FFO Attributable to Common Stockholders, Core FFO Attributable to Common Stockholders per Common Share - Diluted, AFFO Attributable to Common Stockholders, and AFFO Attributable to Common Stockholders per Common Share - Diluted. Further, the weighted average shares used to compute per share amounts for Core FFO Attributable to Common Stockholders per Common Share - Diluted and AFFO Attributable to Common Stockholders per Common Share - Diluted do not reflect any dilution related to the ultimate settlement of the 2025 Convertible Senior Notes.         Investments During the three months ended June 30, 2024, the Company invested $1.5 million into 1.4 acres of land for future development within the West Broad Village property, which was previously acquired in October of 2022.  During the six months ended June 30, 2024, the Company invested $72.5 million into two retail properties totaling 319,066 square feet and one vacant land parcel, and originated one $10.0 million first mortgage structured investment. These investments represent a weighted average going-in cash yield of 8.2%. Dispositions  During the three months ended June 30, 2024, the Company received proceeds of $15.2 million as an early repayment of our Sabal Pavilion seller-financing loan. During the six months ended June 30, 2024, the Company sold one retail property for $20.0 million at an exit cash cap rate of 8.2%, generating a gain of $4.6 million. Portfolio Summary The Company's income property portfolio consisted of the following as of June 30, 2024: Asset Type   # of Properties   Square Feet   Wtd. Avg. RemainingLease Term   Single Tenant   6   252   5.7 years   Multi-Tenant   14   3,643   5.0 years   Total / Wtd. Avg.   20   3,895   4.9 years       Square Feet in thousands.       Property Type   # of Properties   Square Feet   % of Cash Base Rent   Retail   15   2,467   62.5 %   Office   1   210   4.5 %   Mixed-Use   4   1,218   33.0 %       Square Feet in thousands.   Leased Occupancy 94.6 %   Occupancy 92.6 %     Same Property Net Operating Income During the second quarter of 2024, the Company's Same-Property NOI totaled $14.9 million, an increase of 2.0% over the comparable prior year period, as presented in the following table:   Three Months Ended         June 30,2024   June 30,2023   Variance to ComparablePeriod in the Prior Year   Single Tenant $ 1,292     $ 1,191     $ 101       8.5 %   Multi-Tenant   13,587       13,391       196       1.5 %   Total $ 14,879     $ 14,582     $ 297       2.0 %       $ in thousands.       During the six months ended June 30, 2024, the Company's Same-Property NOI totaled $30.0 million, an increase of 4.0% over the comparable prior year period, as presented in the following table:   Six Months Ended         June 30,2024   June 30,2023    Variance to ComparablePeriod in the Prior Year   Single Tenant $ 2,439     $ 2,140     $ 299       14.0 %   Multi-Tenant   27,554       26,696       858       3.2 %   Total $ 29,993     $ 28,836     $ 1,157       4.0 %       $ in thousands.       Leasing Activity During the quarter ended June 30, 2024, the Company signed 16 leases totaling 78,593 square feet. On a comparable basis, which excludes vacancy existing at the time of acquisition, CTO signed 11 leases totaling 57,878 square feet at an average cash base rent of $23.34 per square foot compared to a previous average cash base rent of $21.45 per square foot, representing 8.8% comparable growth. A summary of the Company's overall leasing activity for the quarter ended June 30, 2024, is as follows:   Square Feet   Wtd. Avg.Lease Term   Cash Rent perSquare Foot   TenantImprovements   LeasingCommissions   New Leases 31   8.1 years   $ 33.28   $ 865   $ 515   Renewals & Extensions 48   4.0 years     21.06     10     57   Total / Wtd. Avg. 79   6.0 years   $ 25.87   $ 875   $ 572       In thousands except for per square foot and weighted average lease term data. Comparable leases compare leases signed on a space for which there was previously a tenant. Overall leasing activity does not include lease termination agreements or lease amendments related to tenant bankruptcy proceedings.       During the six months ended June 30, 2024, the Company signed 34 leases totaling 182,707 square feet. On a comparable basis, which excludes vacancy existing at the time of acquisition, CTO signed 26 leases totaling 152,577 square feet at an average cash base rent of $25.05 per square foot compared to a previous average cash base rent of $17.77 per square foot, representing 41.0% comparable growth. A summary of the Company's overall leasing activity for the six months ended June 30, 2024, is as follows:   Square Feet   Wtd. Avg.Lease Term   Cash Rent perSquare Foot   TenantImprovements   LeasingCommissions   New Leases 101   10.9 years   $ 28.29   $ 5,707   $ 1,648   Renewals & Extensions 82   3.9 years     24.48     25     97   Total / Wtd. Avg. 183   8.0 years   $ 26.58   $ 5,732   $ 1,745       In thousands except for per square foot and weighted average lease term data. Comparable leases compare leases signed on a space for which there was previously a tenant. Overall leasing activity does not include lease termination agreements or lease amendments related to tenant bankruptcy proceedings.       Capital Markets and Balance Sheet During the quarter ended June 30, 2024, the Company completed the following notable capital markets activities: Issued 248,960 common shares under its ATM offering program at a weighted average gross price of $17.62 per share, for total net proceeds of $4.3 million. Completed a follow-on public offering of 1,718,417 shares of the Company's 6.375% Series A Cumulative Redeemable Preferred Stock. The Company received net proceeds of $33.1 million, after deducting the underwriting discount and offering expenses payable by the Company, which proceeds were used to pay down our Revolving Credit Facility. As of June 30, 2024, the Company has $150 million of undrawn commitments on our Revolving Credit Facility, and $4.8 million of cash on hand for total liquidity of $154.8 million. The following table provides a summary of the Company's long-term debt, as of June 30, 2024:   Component of Long-Term Debt   Principal   Maturity Date   Interest Rate   Wtd. Avg. Rate as of June 30, 2024   2025 Convertible Senior Notes   $ 51.0 million   April 2025   3.875%   3.88%   2026 Term Loan (1)     65.0 million   March 2026   SOFR + 10 bps +[1.25% - 2.20%]   2.87%   Mortgage Note (2)     17.8 million   August 2026   4.060%   4.06%   Revolving Credit Facility (3)     150.0 million   January 2027   SOFR + 10 bps +[1.25% - 2.20%]   5.07%   2027 Term Loan (4)     100.0 million