CTO Realty Growth (CTO) Q3 Earnings call transcript Oct 25, 2024

In the latest earnings call, CTO Realty Growth presented a robust financial report for the third quarter of 2024, highlighting significant achievements across its business segments and setting a positive outlook for the future. The call, led by President and CEO John Albright and CFO Philip Mays, provided insights into the company's strategic investments, leasing activities, and financial performance, underscoring its continued growth trajectory.

Strategic Investments and Leasing Momentum

CTO Realty Growth showcased its strategic investment strategy with the acquisition of three open-air shopping centers in North Carolina, Florida, and Orlando, Florida. The addition of these properties expands the company's geographic reach and strengthens its presence in key growth markets. The successful execution of these deals highlights the company's ability to identify attractive investment opportunities and deliver on its growth strategy.

On the leasing front, CTO Realty Growth reported leasing over 200,000 square feet of new leases, renewals, and extensions, bringing its year-to-date leasing activity to 385,000 square feet at an average rent of $23.74 per square foot. The company's comparable lease spreads stood at 26% for the first 9 months of 2024, a testament to its strong leasing momentum.

Financial Performance and Guidance

The call also revealed a solid financial performance for the third quarter, with core FFO and AFFO recording growth of approximately 6%. This increase in earnings is indicative of the company's operational efficiency and ability to capitalize on strategic opportunities.

Looking ahead, CTO Realty Growth raised its full-year 2024 outlook for core FFO and AFFO, reflecting the company's confidence in its growth prospects. The decision to increase investment guidance to a new range of $300 million to $350 million underscores the company's aggressive stance on growth and expansion.

Shareholder Engagement and Investor Relations

The earnings call also provided a platform for key shareholders and analysts to engage with CTO Realty Growth's management team, offering insights into their concerns and expectations. Analysts probed the company's acquisition strategy, funding mechanisms, and asset dispositions, highlighting the importance of transparency and investor relations in guiding the company's future growth.

Future Outlook and Challenges

As CTO Realty Growth continues to execute on its growth strategy, it faces challenges such as managing leverage, navigating market volatility, and ensuring operational efficiency. The company's ability to balance these factors while maintaining its strategic focus will be crucial in shaping its future performance and investor confidence.

Overall, the third-quarter earnings call presented a comprehensive overview of CTO Realty Growth's financial health and strategic direction, offering a positive outlook for the company's future growth prospects. With a focus on strategic investments, leasing momentum, and financial performance, CTO Realty Growth is poised to continue its growth trajectory, making it an attractive investment opportunity for those seeking exposure to the real estate sector.