CTO Realty Growth Inc Q1 2025 Earnings Call Transcript

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

Question: RJ Milligan - Raymond James - Analyst : Hey, good morning, guys. John, I was wondering if you could give us a little bit more detail on the anchor space negotiations. I'm curious if any of the recent volatility has maybe put a pause in retailer discussions or if you're seeing any impact there as you're looking to re-tenant those boxes.

Question: RJ Milligan - Raymond James - Analyst : Okay, that's helpful. And then, the new lease spread it's obviously a big number in the quarter and I'm assuming that it was just maybe 11 big lease that that was driving that number higher, but maybe you could give some detail on that.

Question: RJ Milligan - Raymond James - Analyst : And so that sort of aligns to the expectation for the pretty healthy spreads on the 10 any of the boxes. Is that the way to look at it? Yes.

Question: Rob Stevenson - Janney Montgomery Scott. - Analyst : Good morning guys. How much CapEx are you guys having to put into those bankrupt tenant spaces that you're in the process of releasing or have already signed deals on?

Question: Rob Stevenson - Janney Montgomery Scott. - Analyst : Okay. And then what is reasonable these days in terms of, after you sign the lease getting these guys to be rent paying? Is it a year? Is it 9 months? Is it, longer depending on the build out? How should we be thinking about the sort of time frame you announced that you signed somebody in one of these spaces today, how long would it generally be before you start seeing, monthly rents?

Question: Rob Stevenson - Janney Montgomery Scott. - Analyst : Alright, that's helpful. And then how are you guys thinking about, you said that you're seeing deals out there. How do you guys think about sort of funding that at the moment? Is that sale of existing assets and what are your current thoughts on selling the remaining office property? Is there other sort of ways that you're thinking about funding stuff, with the stock it call it 18 bucks or so?

Question: Rob Stevenson - Janney Montgomery Scott. - Analyst : Okay. And then last one for me, Phil, you said that the three party cities paid through March and the Joanne's paid through April. Combined, what are those sort of, what's a ballpark in terms of what they were paying you on a monthly basis that we need to start deducting, on a relative basis as we finalize 2nd quarter estimates here.

Question: Rob Stevenson - Janney Montgomery Scott. - Analyst : Okay, that's helpful. Thanks guys and have a good weekend.

Question: Matthew Erdner - Jones Trading - Analyst : Hey, good morning guys. Thanks for taking the question. As we look at the investment guidance, what's going to kind of drive it to that high range, we expect to see some dispositions if we're going to see about $200 million in investments are kind of up at that higher end. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 1:00PM, CTO.N - Q1 2025 CTO Realty Growth Inc Earnings Call

Question: Matthew Erdner - Jones Trading - Analyst : Yeah, I got it. That's helpful. And then, I'm guessing a majority of this would kind of go on the credit facility and you guys don't really have a problem with taking that up and using the liquidity that you guys have available.

Question: Matthew Erdner - Jones Trading - Analyst : Got it. That's helpful. I appreciate it. Right, thank you.

Question: John Massocca - B. Riley Securities. - Analyst : Good morning. And so understanding that you left the investment yield guidance unchanged, have you seen anything since, the tariff announcement change in terms of cap rates, or I was thinking particularly the yield on structured investments just given some of the widening we've seen in credit spreads and kind of bond markets.

Question: John Massocca - B. Riley Securities. - Analyst : Okay, understood, and then, just because you're pretty active on the acquisition front last year, I mean, how is the kind of non-sam for portfolio trending in terms of NOI growth?

Question: John Massocca - B. Riley Securities. - Analyst : Okay, if I think of like the acquisitions you did, I believe within 32 of last year. I mean, what's kind of the timeline to mark to market on those? I know it's kind of potentially accelerated by some of these, bankruptcies that occurred late last year, but is that kind of something that could happen this year still? Is that something that's kind of, 2-3 years out just kind of broad strokes?

Question: John Massocca - B. Riley Securities. - Analyst : Appreciate that color. That's it for me. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 1:00PM, CTO.N - Q1 2025 CTO Realty Growth Inc Earnings Call

Question: Gaurav Mehta - Alliance Global Partners - Analyst : Thank you. Good morning. I wanted to ask you on the Ashley Plaza, acquisition. I think in the prepared remarks you talked about some opportunity for leaser potential and then mark to market as well. Can you provide some numbers around how much mark to market upside is for that acquisition?

Question: Gaurav Mehta - Alliance Global Partners - Analyst : Okay, second question on the on the releasing CapEx of $9million to $12 million, how much of that is already spent and how much, do you expect to spend this year?

Question: Gaurav Mehta - Alliance Global Partners - Analyst : Okay, thank you, that's all I had.

Question: Craig Kucera - Lucid Capital Markets - Analyst : Yeah, hey, good morning guys. John, last quarter I think you mentioned that the pipeline was almost entirely sort of core property investments and you really weren't seeing much in the way of structured investment opportunities. Is that still the case here heading into mid-year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 1:00PM, CTO.N - Q1 2025 CTO Realty Growth Inc Earnings Call

Question: Craig Kucera - Lucid Capital Markets - Analyst : Got it. And I think last quarter you sort of handicapped that you thought you might add anywhere from maybe $40 million to 50 million for the year. Is that still kind of your thinking?

Question: Craig Kucera - Lucid Capital Markets - Analyst : Okay, great, following up on some of your comments on Ashley Park, are you expecting any meaningful CapEx at the property to achieve some of that low hanging fruit, or is it just, a little simpler than that?

Question: Craig Kucera - Lucid Capital Markets - Analyst : Got it. And you had some shifting assumptions in your sign that open ABR recognition timing. Should we expect, kind of a quiet second, maybe even 3rd quarter, or how should we think about the cadence there?

Question: Craig Kucera - Lucid Capital Markets - Analyst : Okay, great, appreciate the time, Pat.