CTO Realty Growth Inc Q1 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Gaurav Mehta - Alliance Global Partners - Analyst : Good morning. Thanks, I wanted to ask you on your Orlando acquisition. Hoping to get some more color on any value-add opportunities in that

Question: Gaurav Mehta - Alliance Global Partners - Analyst : Okay. Second question on your disposition guidance that was lower. And hoping to get some more color on why that was lowered.

Question: Gaurav Mehta - Alliance Global Partners - Analyst : Okay, thank you.

Question: Robert Stevenson - Janney Montgomery Scott LLC - Analyst : Good morning, guys. John, I guess just continuing on the theme of dispositions. Any incremental update on your thinking on the remaining office asset at this point? Is that something that you guys think will transact this year? Or is it looking like more of a '25 or later? How should we be thinking about that at this point?

Question: Robert Stevenson - Janney Montgomery Scott LLC - Analyst : Okay. And then I think in your prepared comments, you talked about the leased but not open yet portion of the portfolio. When do the bulk of those leases commence and start paying rent? Is that late this year with the biggest financial impact in '25? Or is it really mostly all in '25 that you'll start actually seeing that pop up in the occupancy numbers and then also in the rental line?

Question: Robert Stevenson - Janney Montgomery Scott LLC - Analyst : Okay. And then any on the other side of that coin, any known move-outs at this point of note over the next 18 to 24 months?

Question: Robert Stevenson - Janney Montgomery Scott LLC - Analyst : Okay. And then last one for me. After the preferred deal, how are you thinking about incremental use of preferreds going forward? Do you think the cap structure right now is maxed out at this point on preferreds? Is there still room for you to be able to do that if the common isn't at a price that's to your liking? How should we be thinking about that and where that sort of fits in your capital stack?

Question: Robert Stevenson - Janney Montgomery Scott LLC - Analyst : Okay, that's helpful. Thanks and have a great weekend.

Question: RJ Milligan - Raymond James - Analyst : Hey, good morning. First, just to clarify, I'm not sure if I missed it, but for the big same-store NOI growth in single tenant, is that percentage rents? Or is that CAM catch ups? Or is it both?

Question: RJ Milligan - Raymond James - Analyst : That's helpful. And then, John, maybe you could just elaborate a little bit more on the acquisition environment. Obviously, there's been some adjustment in this higher for longer interest rate environment. I'm just curious what you're seeing out there in terms of sellers and seller expectations.

Question: RJ Milligan - Raymond James - Analyst : Thanks, John. Just to add to that, I'm curious what is the interest rate environment where you think that there's going to be more transactions? Is it stability in interest rates? Or is it lower interest rates? Because obviously, this morning, we're seeing the 10 year come down and just there's been a lot of sellers who said, we think rates are going to come down later, so we're going to stay on the sidelines. So I'm just curious, are you looking more for stability or just for lower rates in general?

Question: RJ Milligan - Raymond James - Analyst : Thanks so much. That's it for me.

Question: Matthew Erdner - Jones Trading - Analyst : Hey, good morning, guys. Thanks for taking the question. Could you talk a little bit about acquisition timing? Should we expect that to kind of happen more so in the near term? Or is it back half ended? And then can you also talk about the difference in opportunities that you're seeing between the loans and just overall asset acquisitions?

Question: Matthew Erdner - Jones Trading - Analyst : Yes, that's helpful. Thank you, guys.

Question: John Massocca - B. Riley Securities - Analyst : Good morning. Just kind of quickly on the old Regal box. You mentioned those leases, the rents are kind of higher versus what Regal is paying. I guess how do they compare to Regal's rents, maybe pre-bankruptcy?

Question: John Massocca - B. Riley Securities - Analyst : Okay. Very helpful. And then the Lake Worth loan investment or loan you put in place. Are there any kind of options on that to purchase the property or any kind of other kind of moving pieces to that loan besides just obviously, the interest income and the drawdowns?

Question: John Massocca - B. Riley Securities - Analyst : Okay. That's very helpful. And then kind of last quick detail question. As we think about disposition guidance, I mean, the seller loan repayment included in that? Or to Sabal? Or is that kind of excluded just given the transaction occurred last year?

Question: John Massocca - B. Riley Securities - Analyst : Okay, that's it for me. Thank you very much.