CTO Realty Growth Q2 2024: Assets $2.98M, Liabilities $4.70M

Ticker: CTO-PA · Form: 10-Q · Filed: Jul 25, 2024 · CIK: 23795

Sentiment: bearish

Topics: financials, real-estate, repurchase-program

TL;DR

CTO Realty Growth's Q2 2024 10-Q shows assets at $2.98M and liabilities at $4.70M. Repurchase programs active.

AI Summary

CTO Realty Growth, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported total assets of $2,978,808 and total liabilities of $4,697,225. The filing also references a stock repurchase program initiated in April 2023 and a preferred stock repurchase program from February 2023.

Why It Matters

This 10-Q filing provides a snapshot of CTO Realty Growth's financial health, detailing its asset and liability positions as of Q2 2024, which is crucial for investors assessing the company's stability.

Risk Assessment

Risk Level: medium — The company's liabilities exceed its reported assets, indicating a potential financial risk.

Key Numbers

Key Players & Entities

FAQ

What were CTO Realty Growth's total assets as of June 30, 2024?

As of June 30, 2024, CTO Realty Growth reported total assets of $2,978,808.

What were CTO Realty Growth's total liabilities as of June 30, 2024?

As of June 30, 2024, CTO Realty Growth reported total liabilities of $4,697,225.

When did CTO Realty Growth's Stock Repurchase Program begin?

The Stock Repurchase Program began on April 1, 2023.

When did CTO Realty Growth's Preferred Stock Repurchase Program begin?

The Preferred Stock Repurchase Program began on January 1, 2023.

What is the fiscal year end for CTO Realty Growth, Inc.?

The fiscal year end for CTO Realty Growth, Inc. is December 31.

Filing Stats: 4,608 words · 18 min read · ~15 pages · Grade level 17.8 · Accepted 2024-07-25 16:21:12

Filing Documents

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheets – June 30, 2024 (Unaudited) and December 31, 2023 3 Consolidated Statements of Operations – Three and six months ended June 30, 2024 and 2023 (Unaudited) 4 Consolidated Statements of Comprehensive Income – Three and six months ended June 30, 2024 and 2023 (Unaudited) 5 Consolidated Statements of Stockholders' Equity – Three and six months ended June 30, 2024 and 2023 (Unaudited) 6 Consolidated Statements of Cash Flows – Six months ended June 30, 2024 and 2023 (Unaudited) 8

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 10

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 38

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 51

Controls and Procedures

Item 4. Controls and Procedures 51

—OTHER INFORMATION

PART II—OTHER INFORMATION 51

Legal Proceedings

Item 1. Legal Proceedings 51

Risk Factors

Item 1A. Risk Factors 51

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 52

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 52

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 52

Other Information

Item 5. Other Information 52

Exhibits

Item 6. Exhibits 53

SIGNATURES

SIGNATURES 54 2 Table of Contents

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS CTO REALTY GROWTH, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) As of (Unaudited) June 30, 2024 December 31, 2023 ASSETS Real Estate: Land, at Cost $ 236,207 $ 222,232 Building and Improvements, at Cost 601,584 559,389 Other Furnishings and Equipment, at Cost 872 857 Construction in Process, at Cost 4,824 3,997 Total Real Estate, at Cost 843,487 786,475 Less, Accumulated Depreciation ( 63,547 ) ( 52,012 ) Real Estate—Net 779,940 734,463 Land and Development Costs 300 731 Intangible Lease Assets—Net 95,054 97,109 Investment in Alpine Income Property Trust, Inc. 36,561 39,445 Mitigation Credits 355 1,044 Commercial Loans and Investments 50,323 61,849 Cash and Cash Equivalents 4,794 10,214 Restricted Cash 1,363 7,605 Refundable Income Taxes 85 246 Deferred Income Taxes—Net 2,147 2,009 Other Assets—See Note 11 38,846 34,953 Total Assets $ 1,009,768 $ 989,668 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Accounts Payable $ 1,787 $ 2,758 Accrued and Other Liabilities—See Note 17 14,713 18,373 Deferred Revenue—See Note 18 5,371 5,200 Intangible Lease Liabilities—Net 13,421 10,441 Long-Term Debt 482,661 495,370 Total Liabilities 517,953 532,142 Commitments and Contingencies—See Note 21 Stockholders' Equity: Preferred Stock – 100,000,000 shares authorized; $ 0.01 par value, 6.375 % Series A Cumulative Redeemable Preferred Stock, $ 25.00 Per Share Liquidation Preference, 4,697,225 shares issued and outstanding at June 30, 2024 and 2,978,808 shares issued and outstanding at December 31, 2023 47 30 Common Stock – 500,000,000 shares authorized; $ 0.01 par value, 23,115,110 shares issued and outstanding at June 30, 2024 and 22,643,034 shares issued and outstanding at December 31, 2023 231 226 Additional Paid-In Capital 207,882 168,435 Retained Earnings 268

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE 1. DESCRIPTION OF BUSINESS We are a publicly traded, self-managed equity REIT that focuses on the ownership, management, and repositioning of high-quality retail and mixed-use properties located primarily in what we believe to be faster growing, business-friendly markets exhibiting accommodative business tax policies, outsized relative job and population growth, and where retail demand exceeds supply. We have pursued our investment strategy by investing primarily through fee simple ownership of our properties, commercial loans and preferred equity . As of June 30, 2024, we own and manage, sometimes utilizing third-party property management companies, 20 commercial real estate properties in 8 states in the United States, comprising 3.9 million square feet of gross leasable space. In addition to our income property portfolio, as of June 30, 2024, our business included the following: Management Services: A fee-based management business that is engaged in managing Alpine Income Property Trust, Inc. ("PINE") as well as; (i) a portfolio of assets pursuant to the Portfolio Management Agreement (hereinafter defined) and (ii) Subsurface Interests (hereinafter defined) pursuant to the Subsurface Management Agreement (hereinafter defined), as further described in Note 5, "Management Services Business". Commercial Loans and Investments: A portfolio of three commercial loan investments and one preferred equity investment which is classified as a commercial loan investment. Real Estate Operations: An inventory of mitigation credits produced by the Company's formerly owned mitigation bank. During the six months ended June 30, 2024, the Company sold its portfolio of subsurface mineral interests associated with approximately 352,000 surface acres in 19 counties in the State of Florida ("Subsurface Interests"), as further described in Note 6, "Real Estate Operations". As part of the Subsurface Interests sale, the C

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