CTO Realty Growth Inc (CTO, Financial) released its earnings report for the quarter ended September 30, 2023, on October 26, 2023. The company reported a Net Income per diluted share attributable to common stockholders of $0.07, Core FFO per diluted share of $0.47, and AFFO per diluted share of $0.48. However, the company reported a decrease in Same-Property NOI of (4.5%) for the quarter compared to the comparable prior year period.
Financial Performance
CTO reported a net income attributable to the company of $2,686,000, a decrease of 44.2% compared to the same period in the previous year. The net income attributable to common stockholders was $1,491,000, a decrease of 58.8% compared to the same period in the previous year. The company's Core FFO attributable to common stockholders was $10,462,000, an increase of 20.5% compared to the same period in the previous year. The AFFO attributable to common stockholders was $10,766,000, an increase of 20.2% compared to the same period in the previous year.
Property Dispositions and Investments
During the quarter, CTO sold two properties for a total disposition activity of $20.9 million at a weighted average exit cap rate of 6.9%, generating total gains on sales of $2.5 million. The company invested $4.3 million into 10.6 acres of land adjacent to The Collection at Forsyth during the quarter. For the nine months ended September 30, 2023, the company invested $80.0 million into four retail property acquisitions totaling 470,600 square feet and one land parcel, and originated one $15.0 million first mortgage structured investment.
Leasing Activity and Portfolio Summary
CTO signed 14 comparable leases during the quarter totaling 106,190 comparable square feet at an average cash base rent of $25.79 per square foot, representing a comparable decrease of (0.4%). As of September 30, 2023, the company's income property portfolio consisted of 7 single tenant properties and 16 multi-tenant properties, with a total of 4,118 thousand square feet and a weighted average lease term of 5.1 years.
Outlook for 2023
CTO increased the midpoint of full year Core FFO per diluted share guidance by 4.9% and full year AFFO per diluted share guidance by 4.5%. The company's outlook for 2023 assumes continued stability in economic activity, stable or positive business trends related to each of its tenants, and other significant assumptions.
About CTO Realty Growth, Inc.
CTO Realty Growth, Inc. is a publicly traded real estate investment trust that owns and operates a portfolio of high-quality, retail-based properties located primarily in higher growth markets in the United States. CTO also externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE), a publicly traded net lease REIT.
Explore the complete 8-K earnings release (here) from CTO Realty Growth Inc for further details.
