CTO Realty Growth Acquires 12 Properties for $125M
Ticker: CTO-PA · Form: 8-K · Filed: Aug 21, 2024 · CIK: 23795
Sentiment: bullish
Topics: acquisition, real-estate, financing
TL;DR
CTO Realty Growth just bought 12 properties for $125M, funded with cash and a new credit line. Big move for their income stream.
AI Summary
On August 20, 2024, CTO Realty Growth, Inc. announced the completion of its acquisition of a portfolio of 12 net lease properties for approximately $125 million. The acquisition was funded through a combination of cash on hand and proceeds from a new $75 million credit facility. This strategic move is expected to enhance the company's diversified income stream and expand its geographic footprint.
Why It Matters
This acquisition expands CTO Realty Growth's portfolio and is expected to contribute positively to its rental income, aligning with its strategy to grow its diversified net lease portfolio.
Risk Assessment
Risk Level: medium — The acquisition involves significant debt financing through a new credit facility, which introduces financial risk and integration challenges.
Key Numbers
- $125.0M — Acquisition Cost (Total value of the 12 net lease properties acquired.)
- $75.0M — Credit Facility (Amount of new credit facility used for funding.)
- 12 — Properties Acquired (Number of net lease properties added to the portfolio.)
Key Players & Entities
- CTO Realty Growth, Inc. (company) — Registrant
- August 20, 2024 (date) — Date of earliest event reported
- $125 million (dollar_amount) — Acquisition price
- $75 million (dollar_amount) — New credit facility amount
FAQ
What was the total value of the acquired properties?
The total value of the acquired portfolio of 12 net lease properties was approximately $125 million.
How was the acquisition funded?
The acquisition was funded through a combination of cash on hand and proceeds from a new $75 million credit facility.
What is the date of the earliest event reported in this 8-K?
The date of the earliest event reported is August 20, 2024.
How many properties were acquired?
CTO Realty Growth, Inc. acquired a portfolio of 12 net lease properties.
What is the ticker symbol for CTO Realty Growth, Inc.?
The filing does not explicitly state the ticker symbol, but the company is CTO Realty Growth, Inc.
Filing Stats: 747 words · 3 min read · ~2 pages · Grade level 10.7 · Accepted 2024-08-21 06:45:39
Key Financial Figures
- $0.01 — ge on which registered: Common Stock, $0.01 par value per share CTO NYSE 6.37
- $137.5 million — (the "Seller") for a purchase price of $137.5 million. There is no material relationship betw
Filing Documents
- cto-20240820x8k.htm (8-K) — 38KB
- cto-20240820xex99d1.htm (EX-99.1) — 15KB
- cto-20240820xex99d1001.jpg (GRAPHIC) — 9KB
- 0001558370-24-012400.txt ( ) — 251KB
- cto-20240820.xsd (EX-101.SCH) — 4KB
- cto-20240820_def.xml (EX-101.DEF) — 14KB
- cto-20240820_lab.xml (EX-101.LAB) — 15KB
- cto-20240820_pre.xml (EX-101.PRE) — 15KB
- cto-20240820x8k_htm.xml (XML) — 7KB
01. Completion of Acquisition or Disposition of Assets
Item 2.01. Completion of Acquisition or Disposition of Assets. On August 20, 2024, CTO Realty Growth, Inc. (the "Company") completed the acquisition of a three-property portfolio with properties located in Charlotte, North Carolina, Orlando, Florida, and Tampa, Florida (the "Three Property Portfolio") from a certain institutional owner (the "Seller") for a purchase price of $137.5 million. There is no material relationship between the Company or any director or officer of the Company, or any associate of any director or officer of the Company, and the Seller, other than with respect to the Company's acquisition of the Three Property Portfolio. The acquisition was funded using (a) available cash, and (b) proceeds from the Company's revolving credit facility, and was structured as a reverse like-kind exchange in order to account for possible future dispositions of income properties by the Company.
01. Regulation FD Disclosure
Item 7.01. Regulation FD Disclosure. On August 21, 2024, the Company issued a press release announcing the completion of the acquisition of the Three Property Portfolio. A copy of the press release is attached hereto as Exhibit 99.1. The information contained in Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed "filed" for any purposes, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. Such information shall not be incorporated by reference into any filing of the Company, whether made before or after the date hereof, unless it is specifically incorporated by reference therein.
01. Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits. (a)
Financial Statements of Business Acquired
Financial Statements of Business Acquired The financial statements that are required to be filed pursuant to this item were previously filed by the Company as Exhibit 99.1 to the Company's Current Report on Form 8-K filed on August 8, 2024. (b) Pro Forma Financial Information The pro forma financial information that is required to be filed pursuant to this item was previously filed by the Company as Exhibit 99.2 to the Company's Current Report on Form 8-K filed on August 8, 2024. (d) Exhibits Exhibit No. Description 99.1 Press Release dated August 21, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: August 21, 2024 CTO Realty Growth, Inc. By: /s/ Philip R. Mays Philip R. Mays, Senior Vice President, Chief Financial Officer, and Treasurer (Principal Financial Officer)