CTO Realty Growth Expands Presence In Tampa Metro Area with Acquisition of Grocery Anchored Property

Rhea-AI Summary

CTO Realty Growth (NYSE: CTO) has acquired Granada Plaza in Dunedin, Florida for $16.8 million. The 74,000 square-foot shopping center is anchored by Publix and is currently 95% occupied. This marks CTO's second grocery-anchored property in the Tampa market.

The acquisition strengthens CTO's portfolio, with grocery-anchored shopping centers now representing approximately 22% of annual base rent. Florida becomes the company's second-largest state by revenue, contributing about 20% of annual base rent. Publix becomes CTO's sixth-largest tenant.

Year-to-date, CTO has completed $330.7 million of investments at a weighted average yield of 9.3%, comprising $226.7 million in retail properties and $104.0 million in structured investments.

Positive

• Acquisition of 95% occupied shopping center for $16.8M
• Portfolio diversification with grocery-anchored property representing 22% of annual base rent
• Strong weighted average yield of 9.3% on YTD investments of $330.7M
• Geographic expansion in high-growth Tampa market

Negative

• None.

Insights

Financial Analyst

The $16.8 million acquisition of Granada Plaza represents a strategic expansion in the Tampa market, enhancing CTO's grocery-anchored portfolio presence. The property's 95% occupancy rate and Publix anchor tenant provide stable cash flow potential. Year-to-date investments of $330.7 million at a compelling 9.3% weighted average yield demonstrate aggressive portfolio growth. The deal increases grocery-anchored exposure to 22% of annual base rent, while Florida now represents 20% of the portfolio, indicating strong geographic diversification. The acquisition metrics and tenant quality suggest accretive potential, though the relatively small size limits immediate financial impact.

Real Estate Market Analyst

The Dunedin, Florida location presents strong market fundamentals with dense population and growth characteristics typical of Tampa's desirable submarkets. The $227 per square foot acquisition price for the 74,000 square-foot center appears reasonable for a Publix-anchored asset in this market. The property's position in CTO's portfolio strengthens their Southeast market presence while maintaining focus on necessity-based retail. The high occupancy rate and grocery anchor demonstrate the property's resilience and potential for stable performance, particularly important given current market conditions.

WINTER PARK, Fla., Dec. 17, 2024 (GLOBE NEWSWIRE) -- CTO Realty Growth, Inc. (NYSE: CTO) an owner and operator of high-quality, open-air shopping centers located in the higher growth Southeast and Southwest markets of the United States (the “Company”), today announced the addition of its second grocery anchored property in the Tampa, Florida market with the acquisition of Granada Plaza for $16.8 million, prior to closing costs and adjustments.

Granada Plaza is a 74,000 square-foot shopping center, anchored by a high-performing Publix, and located in the city of Dunedin, Florida, a densely populated and growing retail market in the Tampa metro area. The property is situated on seven acres and is 95% occupied.

"This acquisition adds another grocery anchored shopping center to our portfolio and further expands our presence in Tampa,” said John P. Albright, President and Chief Executive Officer of CTO Realty Growth, Inc. "With this acquisition, approximately 22% of our annual base rent is provided by grocery anchored shopping centers and Florida, at approximately 20% of annual base rent, is our second largest state. Further, Publix now becomes our sixth largest tenant.”

Year to date, the Company has completed $330.7 million of investments at a weighted average yield of 9.3% consisting of $226.7 million of retail properties and $104.0 million of structured investments.

About CTO Realty Growth, Inc.

CTO Realty Growth, Inc. owns and operates high-quality, open-air shopping centers located in the higher growth Southeast and Southwest markets of the United States. CTO also externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE).

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. Examples of forward-looking statements in this press release include, without limitation, statements regarding the Company’s balance sheet, increased market capitalization and liquidity supporting the Company’s future growth.

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; credit risk associated with the Company investing in structured investments; 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, 2023 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:
Investor Relations
ir@ctoreit.com

FAQ

What is the purchase price and size of CTO's Granada Plaza acquisition?

CTO Realty Growth acquired Granada Plaza for $16.8 million. The property is a 74,000 square-foot shopping center located in Dunedin, Florida.

What is the current occupancy rate of Granada Plaza?

Granada Plaza is currently 95% occupied.

How much has CTO invested in total during 2024?

CTO has completed $330.7 million of investments year-to-date, with $226.7 million in retail properties and $104.0 million in structured investments.

What percentage of CTO's annual base rent comes from grocery-anchored centers after this acquisition?

After this acquisition, approximately 22% of CTO's annual base rent comes from grocery-anchored shopping centers.

What is Florida's contribution to CTO's annual base rent?

Florida represents approximately 20% of CTO's annual base rent, making it the company's second-largest state by revenue.