CTO Realty Growth Announces Sale of Wawa Ground Lease in Jacksonville, Florida For $7.1 Million

Rhea-AI Summary

CTO Realty Growth (NYSE American: CTO) announced the sale of its Wawa ground lease in Jacksonville, Florida, for approximately $7.1 million, with an exit cap rate of about 4.9%. The sale is expected to yield an estimated gain of $246,000 or $0.04 per share after tax. Proceeds will contribute to a future Section 1031 like-kind exchange. Year-to-date, CTO has sold five single-tenant net lease properties and one multi-tenant retail property for over $46 million.

Positive

• Sale of Wawa ground lease at $7.1 million enhances cash position.
• Estimated gain of $246,000 adds to shareholder value.
• Proceeds to be used in Section 1031 exchange, indicating strategic growth.

Negative

• None.

DAYTONA BEACH, Fla., July 23, 2020 (GLOBE NEWSWIRE) -- CTO Realty Growth (NYSE American: CTO) (the “Company”) today announced the closing of the sale of its Wawa ground lease located in Jacksonville, Florida, for a sales price of approximately $7.1 million, reflecting an exit cap rate of approximately 4.9%. The property is currently under a 17-year ground lease to Wawa. The proceeds are expected to be part of a future Section 1031 like-kind exchange. The Company’s estimated gain on the sale is approximately $246,000, or $0.04 per share, after tax. With the closing of this transaction, the Company has over $34 million of proceeds held in 1031 restricted cash accounts. Year to date, the Company has completed the sale of five single-tenant net lease properties and one multi-tenant retail property, for an aggregate sales price of more than $46 million.

About CTO Realty Growth, Inc.
CTO Realty Growth, Inc. is a Florida-based publicly traded real estate company, which owns income properties comprised of approximately 2.2 million square feet in diversified markets in the United States and an approximately 23.5% interest in Alpine Income Property Trust, Inc., a publicly traded net lease real estate investment trust (NYSE: PINE). Visit our website at www.ctorealtygrowth.com.

We encourage you to review CTO’s most recent investor presentations which are available on its website at www.ctorealtygrowth.com.

SAFE HARBOR

Certain statements contained in this press release (other than statements of historical fact) are forward-looking statements. Words such as “believe,” “estimate,” “expect,” “intend,” “anticipate,” “will,” “could,” “may,” “should,” “plan,” “potential,” “predict,” “forecast,” “project,” and similar expressions and variations thereof are intended to identify certain of such forward-looking statements, which speak only as of the dates on which they were made, although not all forward-looking statements contain such words. Although forward-looking statements are made based upon management’s expectations and 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 the completion of 1031 exchange transactions, the availability of investment properties that meet the Company’s investment goals and criteria, the modification of terms of certain agreements pertaining to the acquisition of income producing assets, uncertainties associated with obtaining required governmental permits and satisfying other closing conditions for planned acquisitions and sales, and the impact of the COVID-19 pandemic on the Company’s business and the business of its tenants, as well as the uncertainties and risk factors discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, as filed with the 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 release.

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12%; width:12%; min-width:12%;">Contact:	88%; width:88%; min-width:88%;">Lisa M. Vorakoun, Vice President & Controller lvorakoun@ctorealtygrowth.com
Phone:	(386) 944-5641
Facsimile:	(386) 274-1223

FAQ

What was the sale price of CTO Realty Growth's Wawa ground lease?

CTO Realty Growth sold its Wawa ground lease for approximately $7.1 million.

What is the estimated gain from the Wawa ground lease sale for CTO Realty Growth?

The estimated gain from the sale is approximately $246,000, or $0.04 per share, after tax.

What is the significance of the Section 1031 exchange for CTO Realty Growth?

The proceeds from the sale will be part of a future Section 1031 like-kind exchange, which can provide tax benefits.

How much has CTO Realty Growth sold in total year-to-date?

Year-to-date, CTO Realty Growth has completed the sale of properties for over $46 million.

What is the exit cap rate of the Wawa ground lease sale by CTO Realty Growth?

The exit cap rate of the sale is approximately 4.9%.