CTO Realty Growth Announces Closing of Public Offering of Common Stock and Full Exercise of Underwriters’ Option to Purchase Additional Shares

Rhea-AI Summary

CTO Realty Growth has successfully completed its public offering of 3,450,000 shares at $19.00 each, generating approximately $65.6 million in gross proceeds. The funds will primarily support a $96 million mixed-use acquisition under contract. If this deal falls through, proceeds will be allocated to other acquisitions or general corporate purposes, including debt repayment. The offering was managed by Wells Fargo Securities and Raymond James, with additional book-running managers involved.

Positive

• Generated approximately $65.6 million in gross proceeds from the offering.
• Funds allocated for a $96 million acquisition, indicating potential growth.

Negative

• Potential dilution of existing shareholders due to the new share issuance.

WINTER PARK, Fla., Dec. 05, 2022 (GLOBE NEWSWIRE) -- CTO Realty Growth, Inc. (NYSE: CTO) (the “Company”) today announced that it has closed its previously announced underwritten public offering of 3,450,000 shares of common stock, which includes the full exercise of the underwriters’ option to purchase additional shares, at a price to the public of $19.00 per share. Total gross proceeds to the Company from the offering, before deducting underwriting discounts and commissions and other offering expenses, were approximately $65.6 million.

The Company intends to use the net proceeds from the offering to fund a portion of the $96 million purchase price of its recently announced lifestyle, mixed-use acquisition opportunity it currently has under contract. If the pending acquisition is not completed for any reason, the Company intends to use the net proceeds to fund other potential acquisition opportunities and for general corporate and working capital purposes, including the repayment of debt. Wells Fargo Securities and Raymond James acted as lead joint book-running managers for the offering. BMO Capital Markets, Truist Securities and KeyBanc Capital Markets acted as book-running managers for the offering. Baird, PNC Capital Markets LLC, Regions Securities LLC, Synovus Securities Inc., B. Riley Securities, Compass Point, Janney Montgomery Scott, JonesTrading Institutional Services and EF Hutton, division of Benchmark Investments, LLC, acted as co-managers for the offering.

All shares of common stock were offered under the Company’s existing shelf registration statement filed with the Securities and Exchange Commission. The offering of these shares was made only by means of a prospectus and a related prospectus supplement, copies of which may be obtained by contacting: Wells Fargo Securities, LLC, 500 West 33rd Street, New York, New York 10001, Attention: Equity Syndicate Department, telephone: (800) 326-5897, email: cmclientsupport@wellsfargo.com; or Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, FL 33716, telephone (800) 248-8863, email: prospectus@raymondjames.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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.

Safe Harbor

This press release may contain “forward-looking statements.” Forward-looking statements include statements that may be identified by words such as “could,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “projects” and similar references to future periods, or by the inclusion of forecasts or projections. Forward-looking statements are based on the Company’s current expectations and assumptions regarding capital market conditions, the Company’s business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, the Company’s actual results may differ materially from those contemplated by the forward-looking statements. No assurance can be given that the net proceeds of the offering will be used as indicated above. The application of the net proceeds of the offering is subject to numerous possible events, factors and conditions, many of which are beyond the control of the Company and not all of which are known to it, including, without limitation, market conditions and the factors set forth under “Risk Factors” in the prospectus supplement relating to the offering and in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, which can be accessed at the Securities and Exchange Commission’s website at www.sec.gov. All forward-looking statements speak only as of the date on which they are made. You are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company’s views only as of the date of this press release. Except as required by law, neither the Company nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements appearing in this press release. The Company does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future developments or otherwise.

Contact:		Matthew M. Partridge Senior Vice President, Chief Financial Officer and Treasurer (407) 904-3324 mpartridge@ctoreit.com

FAQ

What was the share price for CTO's public offering?

CTO's public offering was priced at $19.00 per share.

How many shares were offered in CTO's recent public offering?

CTO Realty Growth offered 3,450,000 shares in its recent public offering.

What will the proceeds from CTO's offering be used for?

The proceeds will fund part of a $96 million mixed-use acquisition and may also support other acquisition opportunities or general corporate purposes.

Who managed CTO's public offering?

Wells Fargo Securities and Raymond James acted as lead joint book-running managers for CTO's offering.

What are the risks associated with CTO's share issuance?

The issuance of new shares may lead to potential dilution for existing shareholders.