CTO Realty Growth Announces Sale of Three Single Tenant Outparcels in Chandler, Arizona For $9.2 Million

Rhea-AI Summary

CTO Realty Growth, Inc. (NYSE: CTO) announced the sale of three single tenant outparcels in Chandler, Arizona for $9.2 million, with a weighted average exit cap rate of 5.9%. Year-to-date, the company has sold eight properties for $65.1 million at a 6.4% cap rate, generating gains on sales of $7.1 million. The sales proceeds were used in a Section 1031 like-kind exchange, repaying $64 million of debt under its unsecured revolving credit facility.

Positive

• Successful property sales with attractive pricing
• Year-to-date disposition cap rate of 6.4% is accretive to debt repayment
• Undrawn commitments of $148 million under unsecured revolving credit facility

Negative

• None.

WINTER PARK, Fla., Dec. 04, 2023 (GLOBE NEWSWIRE) -- CTO Realty Growth, Inc. (NYSE: CTO) (the “Company” or “CTO”) today announced the closing of the sale of three single tenant outparcels in Chandler, Arizona for a combined sales price $9.2 million, representing a weighted average exit cap rate of 5.9% and generating aggregate gains on sale of approximately $3.0 million. The outparcels are leased to Olive Garden, Old Chicago Pizza + Taproom, and Mattress Firm and were part of the Company’s Crossroads Towne Center property.

Year-to-date, the Company has sold eight properties for total disposition volume of $65.1 million at a weighted average exit cap rate of 6.4%, generating gains on sales of $7.1 million.

“We’re pleased with the attractive pricing we received on these property sales, as these dispositions continue our efforts to sell smaller format properties to paydown debt as we search for higher growth, larger format investment opportunities,” said John P. Albright, President and Chief Executive Officer of CTO Realty Growth, Inc. “Our year-to-date dispositions cap rate of 6.4% is accretive to the $64 million of debt we recently repaid, which had an in-place floating rate of 7.1%, and also compares favorably to the yield on our most recent acquisition located in a growing submarket of Dallas, Texas.”

The Company utilized the sales proceeds as part of a Section 1031 like-kind exchange (the “1031 Exchange”). The Company repaid $64 million of the outstanding balance under its unsecured revolving credit facility with available cash and proceeds held in 1031 restricted cash accounts. Following the debt repayment, the Company has $148 million of undrawn commitments under its unsecured revolving credit facility.

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.

We encourage you to review our most recent investor presentation and supplemental financial information, which is available on our website at www.ctoreit.com.

Safe Harbor

Certain statements contained in this press release (other than statements of historical fact) are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can typically be identified by words such as “believe,” “estimate,” “expect,” “intend,” “anticipate,” “will,” “could,” “may,” “should,” “plan,” “potential,” “predict,” “forecast,” “project,” and similar expressions, as well as variations or negatives of these words.

Although forward-looking statements are made based upon management’s present expectations and reasonable beliefs concerning future developments and their potential effect upon the Company, a number of factors could cause the Company’s actual results to differ materially from those set forth in the forward-looking statements. Such factors may include, but are not limited to: the Company’s ability to remain qualified as a REIT; the Company’s exposure to U.S. federal and state income tax law changes, including changes to the REIT requirements; general adverse economic and real estate conditions; macroeconomic and geopolitical factors, including but not limited to inflationary pressures, interest rate volatility, distress in the banking sector, global supply chain disruptions, and ongoing geopolitical war; the ultimate geographic spread, severity and duration of pandemics such as the COVID-19 Pandemic and its variants, actions that may be taken by governmental authorities to contain or address the impact of such pandemics, and the potential negative impacts of such pandemics on the global economy and the Company’s financial condition and results of operations; the inability of major tenants to continue paying their rent or obligations due to bankruptcy, insolvency or a general downturn in their business; the loss or failure, or decline in the business or assets of PINE; the completion of 1031 exchange transactions; the availability of investment properties that meet the Company’s investment goals and criteria; the uncertainties associated with obtaining required governmental permits and satisfying other closing conditions for planned acquisitions and sales; and the uncertainties and risk factors discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and other risks and uncertainties discussed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission.

There can be no assurance that future developments will be in accordance with management’s expectations or that the effect of future developments on the Company will be those anticipated by management. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to update the information contained in this press release to reflect subsequently occurring events or circumstances.

Contact:

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

FAQ

What did CTO Realty Growth, Inc. announce?

CTO Realty Growth, Inc. announced the closing of the sale of three single tenant outparcels in Chandler, Arizona for a combined sales price $9.2 million.

What is the year-to-date disposition cap rate?

The year-to-date disposition cap rate is 6.4%.

How did the company utilize the sales proceeds?

The company utilized the sales proceeds as part of a Section 1031 like-kind exchange and repaid $64 million of the outstanding balance under its unsecured revolving credit facility.

What is the amount of undrawn commitments under the unsecured revolving credit facility?

The company has $148 million of undrawn commitments under its unsecured revolving credit facility.