PINE Alpine Income Property Trust Inc

CTO Realty Growth, Inc. (NYSE: CTO) (the “Company” or “CTO”) today announced its operating results and earnings for the quarter ended June 30, 2024.

Second Quarter and Recent Highlights

• Reported Net Loss per diluted share attributable to common stockholders of $(0.03) for the quarter ended June 30, 2024.
• Reported Core FFO per diluted share attributable to common stockholders of $0.45 for the quarter ended June 30, 2024.
• Reported AFFO per diluted share attributable to common stockholders of $0.48 for the quarter ended June 30, 2024.
• Received net proceeds of $33.1 million from the completion of a follow-on public offering of 1,718,417 shares of the Company’s 6.375% Series A Cumulative Redeemable Preferred Stock.
• Received net proceeds of $4.3 million from the issuance of 248,960 common shares under the Company’s ATM offering program.
• Received proceeds of $15.2 million as an early repayment of our Sabal Pavilion seller-financing loan.
• The Company has approximately $155 million of total liquidity as of June 30, 2024, including $150 million of undrawn commitments on our Revolving Credit Facility.
• Reported an increase in Same-Property NOI of 2.0% as compared to the second quarter of 2023 and an increase of 4.0% for the six months ended June 30, 2024, as compared to the same period of 2023. 
• Signed not open pipeline represents $4.7 million, or 5.9%, of annual cash base rent in place as of June 30, 2024.
• Increased full year Core FFO guidance to $1.81 to $1.86 per diluted share and full year AFFO guidance to $1.95 to $2.00 per diluted share, representing increases of 11.9% and 11.0%, respectively, at the midpoint of these ranges.

CEO Comments

“We are pleased that our strong leasing results over the past year are starting to deliver meaningful Same-Property NOI growth, including an increase of 4% for the first half of the year,” said John P. Albright, President and Chief Executive Officer of CTO Realty Growth. “The strength of our leasing continued this quarter with an 8.8% leasing spread on comparable leases. Given our solid earnings and increased investment activity outlook, we have increased our full-year Core FFO and AFFO guidance by 11.9% and 11.0%, respectively, at the mid-points of the ranges, and are looking forward to an active second half of 2024.”

Quarterly Financial Results Highlights

The table below provides a summary of the Company’s operating results for the three months ended June 30, 2024:

		Three Months Ended
(in thousands, except per share data)		June 30,2024				June 30,2023				Variance to ComparablePeriod in the Prior Year
Net Income Attributable to the Company		$	1,183			$	1,800			$	(617	)			(34.3	)%
Net Income (Loss) Attributable to CommonStockholders		$	(688	)		$	605			$	(1,293	)			(213.7	)%
Net Income (Loss) Attributable to CommonStockholders per Common Share - Diluted (1)		$	(0.03	)		$	0.03			$	(0.06	)			(200.0	)%
Core FFO Attributable to Common Stockholders (2)		$	10,353			$	9,608			$	745				7.8	%
Core FFO Attributable to Common Stockholdersper Common Share - Diluted (2)		$	0.45			$	0.43			$	0.02				4.7	%
AFFO Attributable to Common Stockholders (2)		$	11,051			$	10,781			$	270				2.5	%
AFFO Attributable to Common Stockholdersper Common Share - Diluted (2)		$	0.48			$	0.48			$	—				0.0	%
Dividends Declared and Paid - Preferred Stock		$	0.40			$	0.40			$	—				0.0	%
Dividends Declared and Paid - Common Stock		$	0.38			$	0.38			$	—				0.0	%
(1)	The denominator for this measure excludes the impact of 3.6 million and 3.3 million shares for the three months ended June 30, 2024 and 2023, respectively, related to the Company’s adoption of ASU 2020-06, effective January 1, 2022, which requires presentation on an if-converted basis for its 2025 Convertible Senior Notes, as the impact would be anti-dilutive.
(2)	See the “Non-GAAP Financial Measures” section and tables at the end of this press release for a discussion and reconciliation of Net Income (Loss) Attributable to the Company to non-GAAP financial measures, including FFO Attributable to Common Stockholders, FFO Attributable to Common Stockholders per Common Share - Diluted, Core FFO Attributable to Common Stockholders, Core FFO Attributable to Common Stockholders per Common Share - Diluted, AFFO Attributable to Common Stockholders, and AFFO Attributable to Common Stockholders per Common Share - Diluted. Further, the weighted average shares used to compute per share amounts for Core FFO Attributable to Common Stockholders per Common Share - Diluted and AFFO Attributable to Common Stockholders per Common Share - Diluted do not reflect any dilution related to the ultimate settlement of the 2025 Convertible Senior Notes.

Year-to-Date Financial Results Highlights

The table below provides a summary of the Company’s operating results for the six months ended June 30, 2024:

		Six Months Ended
(in thousands, except per share data)		June 30,2024				June 30,2023					Variance to ComparablePeriod in the Prior Year
Net Income (Loss) Attributable to the Company		$	7,025			$	(4,193	)			$	11,218			267.5	%
Net Income (Loss) Attributable to CommonStockholders		$	3,967			$	(6,583	)			$	10,550			160.3	%
Net Income (Loss) Attributable to CommonStockholders per Common Share - Diluted (1)		$	0.17			$	(0.29	)			$	0.46			158.6	%
Core FFO Attributable to Common Stockholders (2)		$	21,090			$	18,475				$	2,615			14.2	%
Core FFO Attributable to Common Stockholdersper Common Share - Diluted (2)		$	0.93			$	0.82				$	0.11			13.4	%
AFFO Attributable to Common Stockholders (2)		$	22,699			$	20,644				$	2,055			10.0	%
AFFO Attributable to Common Stockholders perCommon Share - Diluted (2)		$	1.00			$	0.91				$	0.09			9.9	%
Dividends Declared and Paid - Preferred Stock		$	0.80			$	0.80				$	—			0.0	%
Dividends Declared and Paid - Common Stock		$	0.76			$	0.76				$	—			0.0	%
(1)	The denominator for this measure excludes the impact of 3.6 million and 3.3 million shares for the six months ended June 30, 2024 and 2023, respectively, related to the Company’s adoption of ASU 2020-06, effective January 1, 2022, which requires presentation on an if-converted basis for its 2025 Convertible Senior Notes, as the impact would be anti-dilutive.
(2)	See the “Non-GAAP Financial Measures” section and tables at the end of this press release for a discussion and reconciliation of Net Income (Loss) Attributable to the Company to non-GAAP financial measures, including FFO Attributable to Common Stockholders, FFO Attributable to Common Stockholders per Common Share - Diluted, Core FFO Attributable to Common Stockholders, Core FFO Attributable to Common Stockholders per Common Share - Diluted, AFFO Attributable to Common Stockholders, and AFFO Attributable to Common Stockholders per Common Share - Diluted. Further, the weighted average shares used to compute per share amounts for Core FFO Attributable to Common Stockholders per Common Share - Diluted and AFFO Attributable to Common Stockholders per Common Share - Diluted do not reflect any dilution related to the ultimate settlement of the 2025 Convertible Senior Notes.

Investments

During the three months ended June 30, 2024, the Company invested $1.5 million into 1.4 acres of land for future development within the West Broad Village property, which was previously acquired in October of 2022. 

During the six months ended June 30, 2024, the Company invested $72.5 million into two retail properties totaling 319,066 square feet and one vacant land parcel, and originated one $10.0 million first mortgage structured investment. These investments represent a weighted average going-in cash yield of 8.2%.

Dispositions 

During the three months ended June 30, 2024, the Company received proceeds of $15.2 million as an early repayment of our Sabal Pavilion seller-financing loan.

During the six months ended June 30, 2024, the Company sold one retail property for $20.0 million at an exit cash cap rate of 8.2%, generating a gain of $4.6 million.

Portfolio Summary

The Company’s income property portfolio consisted of the following as of June 30, 2024:

Asset Type		# of Properties		Square Feet		Wtd. Avg. RemainingLease Term
Single Tenant		6		252		5.7 years
Multi-Tenant		14		3,643		5.0 years
Total / Wtd. Avg.		20		3,895		4.9 years
Square Feet in thousands.

Property Type		# of Properties		Square Feet		% of Cash Base Rent
Retail		15		2,467		62.5	%
Office		1		210		4.5	%
Mixed-Use		4		1,218		33.0	%
Square Feet in thousands.

Leased Occupancy	94.6	%
Occupancy	92.6	%

Same Property Net Operating Income

During the second quarter of 2024, the Company’s Same-Property NOI totaled $14.9 million, an increase of 2.0% over the comparable prior year period, as presented in the following table:

	Three Months Ended
	June 30,2024				June 30,2023				Variance to ComparablePeriod in the Prior Year
Single Tenant	$	1,292			$	1,191			$	101				8.5	%
Multi-Tenant		13,587				13,391				196				1.5	%
Total	$	14,879			$	14,582			$	297				2.0	%
$ in thousands.

During the six months ended June 30, 2024, the Company’s Same-Property NOI totaled $30.0 million, an increase of 4.0% over the comparable prior year period, as presented in the following table:

	Six Months Ended
	June 30,2024				June 30,2023				Variance to ComparablePeriod in the Prior Year
Single Tenant	$	2,439			$	2,140			$	299				14.0	%
Multi-Tenant		27,554				26,696				858				3.2	%
Total	$	29,993			$	28,836			$	1,157				4.0	%
$ in thousands.

Leasing Activity

During the quarter ended June 30, 2024, the Company signed 16 leases totaling 78,593 square feet. On a comparable basis, which excludes vacancy existing at the time of acquisition, CTO signed 11 leases totaling 57,878 square feet at an average cash base rent of $23.34 per square foot compared to a previous average cash base rent of $21.45 per square foot, representing 8.8% comparable growth.

A summary of the Company’s overall leasing activity for the quarter ended June 30, 2024, is as follows:

	Square Feet		Wtd. Avg.Lease Term		Cash Rent perSquare Foot			TenantImprovements			LeasingCommissions
New Leases	31		8.1 years		$	33.28		$	865		$	515
Renewals & Extensions	48		4.0 years			21.06			10			57
Total / Wtd. Avg.	79		6.0 years		$	25.87		$	875		$	572
In thousands except for per square foot and weighted average lease term data. Comparable leases compare leases signed on a space for which there was previously a tenant. Overall leasing activity does not include lease termination agreements or lease amendments related to tenant bankruptcy proceedings.

During the six months ended June 30, 2024, the Company signed 34 leases totaling 182,707 square feet. On a comparable basis, which excludes vacancy existing at the time of acquisition, CTO signed 26 leases totaling 152,577 square feet at an average cash base rent of $25.05 per square foot compared to a previous average cash base rent of $17.77 per square foot, representing 41.0% comparable growth.

A summary of the Company’s overall leasing activity for the six months ended June 30, 2024, is as follows:

	Square Feet		Wtd. Avg.Lease Term		Cash Rent perSquare Foot			TenantImprovements			LeasingCommissions
New Leases	101		10.9 years		$	28.29		$	5,707		$	1,648
Renewals & Extensions	82		3.9 years			24.48			25			97
Total / Wtd. Avg.	183		8.0 years		$	26.58		$	5,732		$	1,745
In thousands except for per square foot and weighted average lease term data. Comparable leases compare leases signed on a space for which there was previously a tenant. Overall leasing activity does not include lease termination agreements or lease amendments related to tenant bankruptcy proceedings.

Capital Markets and Balance Sheet

During the quarter ended June 30, 2024, the Company completed the following notable capital markets activities:

• Issued 248,960 common shares under its ATM offering program at a weighted average gross price of $17.62 per share, for total net proceeds of $4.3 million.
• Completed a follow-on public offering of 1,718,417 shares of the Company’s 6.375% Series A Cumulative Redeemable Preferred Stock. The Company received net proceeds of $33.1 million, after deducting the underwriting discount and offering expenses payable by the Company, which proceeds were used to pay down our Revolving Credit Facility.
• As of June 30, 2024, the Company has $150 million of undrawn commitments on our Revolving Credit Facility, and $4.8 million of cash on hand for total liquidity of $154.8 million.

The following table provides a summary of the Company’s long-term debt, as of June 30, 2024:

Component of Long-Term Debt

Principal

Maturity Date

Interest Rate

Wtd. Avg. Rate as of June 30, 2024

2025 Convertible Senior Notes

$

51.0 million

April 2025

3.875%

3.88%

2026 Term Loan (1)

65.0 million

March 2026

SOFR + 10 bps +[1.25% - 2.20%]

2.87%

Mortgage Note (2)

17.8 million

August 2026

4.060%

4.06%

Revolving Credit Facility (3)

150.0 million

January 2027

SOFR + 10 bps +[1.25% - 2.20%]

5.07%

2027 Term Loan (4)

100.0 million

January 2027

SOFR + 10 bps +[1.25% - 2.20%]

2.95%

2028 Term Loan (5)

100.0 million

January 2028

SOFR + 10 bps +[1.20% - 2.15%]

5.33%

Total Long-Term Debt

$

483.8 million

4.23%

(1)

The Company utilized interest rate swaps on the $65.0 million 2026 Term Loan balance to fix SOFR and achieve a weighted average fixed swap rate of 1.27% plus the 10 bps SOFR adjustment plus the applicable spread.

(2)

Mortgage note assumed in connection with the acquisition of Price Plaza Shopping Center located in Katy, Texas.

(3)

The Company utilized interest rate swaps on $150.0 million of the Credit Facility balance to fix SOFR and achieve a weighted average fixed swap rate of 3.47% plus the 10 bps SOFR adjustment plus the applicable spread.

(4)

The Company utilized interest rate swaps on the $100.0 million 2027 Term Loan balance to fix SOFR and achieve a fixed swap rate of 1.35% plus the 10 bps SOFR adjustment plus the applicable spread.

(5)

The Company utilized interest rate swaps on the $100.0 million 2028 Term Loan balance to fix SOFR and achieve a weighted average fixed swap rate of 3.78% plus the 10 bps SOFR adjustment plus the applicable spread.

As of June 30, 2024, the Company’s net debt to Pro Forma EBITDA was 7.5 times, and as defined in the Company’s credit agreement, the Company’s fixed charge coverage ratio was 2.7 times. As of June 30, 2024, the Company’s net debt to total enterprise value was 47.8%. The Company calculates total enterprise value as the sum of net debt, par value of its 6.375% Series A preferred equity, and the market value of the Company's outstanding common shares.

Dividends

On May 28, 2024, the Company announced a cash dividend on its common stock and Series A Preferred Stock for the second quarter of 2024 of $0.38 per share and $0.40 per share, respectively, payable on June 28, 2024 to stockholders of record as of the close of business on June 13, 2024. The second quarter 2024 common stock cash dividend represents a payout ratio of 84.4% and 79.2% of the Company’s second quarter 2024 Core FFO Attributable to Common Stockholders per Common Share - Diluted and AFFO Attributable to Common Stockholders per Common Share - Diluted, respectively.

2024 Outlook

The Company has increased its Core FFO and AFFO outlook for 2024 and has revised certain assumptions to take into account the Company’s year-to-date performance and revised expectations regarding the Company’s acquisition activities. The Company’s outlook for 2024 assumes continued stability in economic activity, stable or positive business trends related to each of our tenants and other significant assumptions.

The Company’s increased outlook for 2024 is as follows:

	Revised Outlook Range for 2024						Change from Prior Outlook
	Low			High			Low			High
Core FFO per Diluted Share	$	1.81	to	$	1.86		$	0.21	to	$	0.18
AFFO per Diluted Share	$	1.95	to	$	2.00		$	0.21	to	$	0.18

The Company’s 2024 guidance includes but is not limited to the following assumptions: 

• Same-Property NOI growth of 2% to 4%, including the known impact of bad debt expense, occupancy loss and costs associated with tenants in bankruptcy, and/or tenant lease defaults, and before any impact from potential 2024 income property acquisitions and/or dispositions. 
• General and administrative expenses within a range of $15.2 million to $16.2 million. 
• Weighted average diluted shares outstanding of 22.9 million shares.
• Year-end 2024 leased occupancy projected to be within a range of 95% to 96% before any impact from potential 2024 income property acquisitions and/or dispositions. 
• Investment, including structured investments, between $200 million and $250 million at a weighted average initial cash yield between 8.50% and 9.00%. 
• Disposition of assets between $50 million and $75 million at a weighted average exit cash yield between 7.50% and 8.25% 

Earnings Conference Call & Webcast

The Company will host a conference call to present its operating results for the quarter ended June 30, 2024, on Friday, July 26, 2024, at 9:00 AM ET.

A live webcast of the call will be available on the Investor Relations page of the Company’s website at www.ctoreit.com or at the link provided in the event details below. To access the call by phone, please go to the registration link provided in the event details below and you will be provided with dial-in details.

Event Details:

Webcast:	https://edge.media-server.com/mmc/p/n6cuxiih
Registration:	https://register.vevent.com/register/BI83b768fbc540495da856dfd974c470c9

We encourage participants to register and dial into the conference call at least fifteen minutes ahead of the scheduled start time. A replay of the earnings call will be archived and available online through the Investor Relations section of the Company’s website at www.ctoreit.com.

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; 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. 

Non-GAAP Financial Measures 

Our reported results are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We also disclose Funds From Operations (“FFO”), Core Funds From Operations (“Core FFO”), Adjusted Funds From Operations (“AFFO”), Pro Forma Earnings Before Interest, Taxes, Depreciation and Amortization (“Pro Forma EBITDA”), and Same-Property Net Operating Income (“Same-Property NOI”), each of which are non-GAAP financial measures. We believe these non-GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs.

FFO, Core FFO, AFFO, Pro Forma EBITDA, and Same-Property NOI do not represent cash generated from operating activities and are not necessarily indicative of cash available to fund cash requirements; accordingly, they should not be considered alternatives to net income as a performance measure or cash flows from operating activities as reported on our statement of cash flows as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures. 

We compute FFO in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT.

NAREIT defines FFO as GAAP net income or loss adjusted to exclude real estate related depreciation and amortization, as well as extraordinary items (as defined by GAAP) such as net gain or loss from sales of depreciable real estate assets, impairment write-downs associated with depreciable real estate assets and impairments associated with the implementation of current expected credit losses on commercial loans and investments at the time of origination, including the pro rata share of such adjustments of unconsolidated subsidiaries. The Company also excludes the gains or losses from sales of assets incidental to the primary business of the REIT which specifically include the sales of mitigation credits, subsurface sales, investment securities, and land sales, in addition to the mark-to-market of the Company’s investment securities and interest related to the 2025 Convertible Senior Notes, if the effect is dilutive. To derive Core FFO, we modify the NAREIT computation of FFO to include other adjustments to GAAP net income related to gains and losses recognized on the extinguishment of debt, amortization of above- and below-market lease related intangibles, and other unforecastable market- or transaction-driven non-cash items, as well as adding back the interest related to the 2025 Convertible Senior Notes, if the effect is dilutive. To derive AFFO, we further modify the NAREIT computation of FFO and Core FFO to include other adjustments to GAAP net income related to non-cash revenues and expenses such as straight-line rental revenue, non-cash compensation, and other non-cash amortization. Such items may cause short-term fluctuations in net income but have no impact on operating cash flows or long-term operating performance. We use AFFO as one measure of our performance when we formulate corporate goals. 

To derive Pro Forma EBITDA, GAAP net income or loss attributable to the Company is adjusted to exclude real estate related depreciation and amortization, as well as extraordinary items (as defined by GAAP) such as net gain or loss from sales of depreciable real estate assets, impairment write-downs associated with depreciable real estate assets, impairments associated with the implementation of current expected credit losses on commercial loans and investments at the time of origination, including the pro rata share of such adjustments of unconsolidated subsidiaries, non-cash revenues and expenses such as straight-line rental revenue, amortization of deferred financing costs, above- and below-market lease related intangibles, non-cash compensation, other non-recurring items such as termination fees, forfeitures of tenant security deposits, and certain adjustments to reconciliation estimates related to reimbursable revenue for recently acquired properties, and other non-cash income or expense. The Company also excludes the gains or losses from sales of assets incidental to the primary business of the REIT which specifically include the sales of mitigation credits, subsurface sales, investment securities, and land sales, in addition to the mark-to-market of the Company’s investment securities. Cash interest expense is also excluded from Pro Forma EBITDA, and GAAP net income or loss is adjusted for the annualized impact of acquisitions, dispositions and other similar activities. 

To derive Same-Property NOI, GAAP net income or loss attributable to the Company is adjusted to exclude real estate related depreciation and amortization, as well as extraordinary items (as defined by GAAP) such as net gain or loss from sales of depreciable real estate assets, impairment write-downs associated with depreciable real estate assets, impairments associated with the implementation of current expected credit losses on commercial loans and investments at the time of origination, including the pro rata share of such adjustments of unconsolidated subsidiaries, non-cash revenues and expenses such as straight-line rental revenue, amortization of deferred financing costs, above- and below-market lease related intangibles, non-cash compensation, other non-recurring items such as termination fees, forfeitures of tenant security deposits, and certain adjustments to reconciliation estimates related to reimbursable revenue for recently acquired properties, and other non-cash income or expense. Interest expense, general and administrative expenses, investment and other income or loss, income tax benefit or expense, real estate operations revenues and direct cost of revenues, management fee income, and interest income from commercial loans and investments are also excluded from Same-Property NOI. GAAP net income or loss is further adjusted to remove the impact of properties that were not owned for the full current and prior year reporting periods presented. Cash rental income received under the leases pertaining to the Company’s assets that are presented as commercial loans and investments in accordance with GAAP is also used in lieu of the interest income equivalent. 

FFO is used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers primarily because it excludes the effect of real estate depreciation and amortization and net gains or losses on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. We believe that Core FFO and AFFO are additional useful supplemental measures for investors to consider because they will help them to better assess our operating performance without the distortions created by other non-cash revenues or expenses. We also believe that Pro Forma EBITDA is an additional useful supplemental measure for investors to consider as it allows for a better assessment of our operating performance without the distortions created by other non-cash revenues, expenses or certain effects of the Company’s capital structure on our operating performance. We use Same-Property NOI to compare the operating performance of our assets between periods. It is an accepted and important measurement used by management, investors and analysts because it includes all property-level revenues from the Company’s properties, less operating and maintenance expenses, real estate taxes and other property-specific expenses (“Net Operating Income” or “NOI”) of properties that have been owned and stabilized for the entire current and prior year reporting periods. Same-Property NOI attempts to eliminate differences due to the acquisition or disposition of properties during the particular period presented, and therefore provides a more comparable and consistent performance measure for the comparison of the Company’s properties. FFO, Core FFO, AFFO, Pro Forma EBITDA, and Same-Property NOI may not be comparable to similarly titled measures employed by other companies.

CTO Realty Growth, Inc.Consolidated Balance Sheets(In thousands, except share and per share data)
	As of
	(Unaudited) June 30, 2024				December 31,2023
ASSETS
Real Estate:
Land, at Cost	$	236,207			$	222,232
Building and Improvements, at Cost		601,584				559,389
Other Furnishings and Equipment, at Cost		872				857
Construction in Process, at Cost		4,824				3,997
Total Real Estate, at Cost		843,487				786,475
Less, Accumulated Depreciation		(63,547	)			(52,012	)
Real Estate—Net		779,940				734,463
Land and Development Costs		300				731
Intangible Lease Assets—Net		95,054				97,109
Investment in Alpine Income Property Trust, Inc.		36,561				39,445
Mitigation Credits		355				1,044
Commercial Loans and Investments		50,323				61,849
Cash and Cash Equivalents		4,794				10,214
Restricted Cash		1,363				7,605
Refundable Income Taxes		85				246
Deferred Income Taxes—Net		2,147				2,009
Other Assets		38,846				34,953
Total Assets	$	1,009,768			$	989,668
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Accounts Payable	$	1,787			$	2,758
Accrued and Other Liabilities		14,713				18,373
Deferred Revenue		5,371				5,200
Intangible Lease Liabilities—Net		13,421				10,441
Long-Term Debt		482,661				495,370
Total Liabilities		517,953				532,142
Commitments and Contingencies
Stockholders’ Equity:
Preferred Stock – 100,000,000 shares authorized; $0.01 par value, 6.375%Series A Cumulative Redeemable Preferred Stock, $25.00 Per ShareLiquidation Preference, 4,697,225 shares issued and outstanding at June 30,2024 and 2,978,808 shares issued and outstanding at December 31, 2023		47				30
Common Stock – 500,000,000 shares authorized; $0.01 par value, 23,115,110shares issued and outstanding at June 30, 2024 and 22,643,034 shares issuedand outstanding at December 31, 2023		231				226
Additional Paid-In Capital		207,882				168,435
Retained Earnings		268,269				281,944
Accumulated Other Comprehensive Income		15,386				6,891
Total Stockholders’ Equity		491,815				457,526
Total Liabilities and Stockholders’ Equity	$	1,009,768			$	989,668

CTO Realty Growth, Inc.Consolidated Statements of Operations (Unaudited)(In thousands, except share, per share and dividend data)
	Three Months Ended								Six Months Ended
	June 30,2024				June 30,2023				June 30,2024				June 30,2023
Revenues
Income Properties	$	25,878			$	22,758			$	50,501			$	45,190
Management Fee Income		1,131				1,102				2,236				2,200
Interest Income From Commercial Loans andInvestments		1,441				1,056				2,792				1,851
Real Estate Operations		395				1,131				1,443				1,523
Total Revenues		28,845				26,047				56,972				50,764
Direct Cost of Revenues
Income Properties		(8,080	)			(6,670	)			(14,833	)			(13,823	)
Real Estate Operations		(259	)			(639	)			(1,078	)			(724	)
Total Direct Cost of Revenues		(8,339	)			(7,309	)			(15,911	)			(14,547	)
General and Administrative Expenses		(3,459	)			(3,327	)			(7,675	)			(7,054	)
Provision for Impairment		(67	)			—				(115	)			(479	)
Depreciation and Amortization		(11,549	)			(10,829	)			(22,480	)			(21,145	)
Total Operating Expenses		(23,414	)			(21,465	)			(46,181	)			(43,225	)
Gain on Disposition of Assets		—				1,101				9,163				1,101
Other Gain		—				1,101				9,163				1,101
Total Operating Income		5,431				5,683				19,954				8,640
Investment and Other Income (Loss)		1,429				1,811				(1,830	)			(2,480	)
Interest Expense		(5,604	)			(5,211	)			(11,133	)			(9,843	)
Income Before Income Tax Benefit (Expense)		1,256				2,283				6,991				(3,683	)
Income Tax Benefit (Expense)		(73	)			(483	)			34				(510	)
Net Income (Loss) Attributable to the Company		1,183				1,800				7,025				(4,193	)
Distributions to Preferred Stockholders		(1,871	)			(1,195	)			(3,058	)			(2,390	)
Net Income (Loss) Attributable to CommonStockholders	$	(688	)		$	605			$	3,967			$	(6,583	)
Per Share Information:
Basic and Diluted Net Income (Loss) Attributableto Common Stockholders	$	(0.03	)			0.03				0.17				(0.29	)
Weighted Average Number of Common Shares
Basic		22,787,252				22,482,957				22,669,246				22,593,280
Diluted		22,828,148				22,482,957				22,674,796				22,593,280
Dividends Declared and Paid - Preferred Stock	$	0.40			$	0.40			$	0.80			$	0.80
Dividends Declared and Paid - Common Stock	$	0.38			$	0.38			$	0.76			$	0.76

CTO Realty Growth, Inc.Non-GAAP Financial MeasuresSame-Property NOI Reconciliation(Unaudited)(In thousands)
		Three Months Ended								Six Months Ended
		June 30,2024				June 30,2023				June 30,2024				June 30,2023
Net Income (Loss) Attributable to the Company		$	1,183			$	1,800			$	7,025			$	(4,193	)
	Gain on Disposition of Assets, Net of Tax		—				(1,101	)			(9,163	)			(1,101	)
	Provision for Impairment		67				—				115				479
	Depreciation and Amortization		11,549				10,829				22,480				21,145
	Amortization of Intangibles to Lease Income		(244	)			(627	)			(718	)			(1,306	)
	Straight-Line Rent Adjustment		346				(122	)			1,039				129
	COVID-19 Rent Repayments		—				(17	)			—				(43	)
	Accretion of Tenant Contribution		13				38				26				76
	Interest Expense		5,604				5,211				11,133				9,843
	General and Administrative Expenses		3,459				3,327				7,675				7,054
	Investment and Other Income (Loss)		(1,429	)			(1,811	)			1,830				2,480
	Income Tax Benefit (Expense)		73				483				(34	)			510
	Real Estate Operations Revenues		(395	)			(1,131	)			(1,443	)			(1,523	)
	Real Estate Operations Direct Cost of Revenues		259				639				1,078				724
	Management Fee Income		(1,131	)			(1,102	)			(2,236	)			(2,200	)
	Interest Income From Commercial Loans and Investments		(1,441	)			(1,056	)			(2,792	)			(1,851	)
	Other Non-Recurring Items (1)		(303	)			—				(553	)			—
	Less: Impact of Properties Not Owned for the Full Reporting Period		(2,731	)			(778	)			(5,469	)			(1,387	)
Same-Property NOI		$	14,879			$	14,582			$	29,993			$	28,836
(1)	Includes non-recurring items including termination fees, forfeitures of tenant security deposits, and certain adjustments to estimates related to recently acquired property CAM reconciliations.

CTO Realty Growth, Inc.Non-GAAP Financial MeasuresFunds from Operations, Core Funds from Operations, and Adjusted Funds from OperationsAttributable to Common Stockholders(Unaudited)(In thousands, except per share data)
		Three MonthsEnded								Six MonthsEnded
		June 30,2024				June 30,2023				June 30,2024				June 30,2023
Net Income (Loss) Attributable to the Company		$	1,183			$	1,800			$	7,025			$	(4,193	)
	Add Back: Effect of Dilutive Interest Related to 2025 Notes (1)		—				—				—				—
Net Income (Loss) Attributable to the Company, If-Converted		$	1,183			$	1,800			$	7,025			$	(4,193	)
	Depreciation and Amortization of Real Estate		11,532				10,816				22,447				21,118
	Gain on Disposition of Assets, Net of Tax		—				(824	)			(9,163	)			(824	)
	Gain on Disposition of Other Assets		(139	)			(490	)			(370	)			(813	)
	Provision for Impairment		67				—				115				479
	Realized and Unrealized Loss (Gain) on Investment Securities		(663	)			1,174				3,376				6,092
	Extinguishment of Contingent Obligation		—				(2,300	)			—				(2,300	)
Funds from Operations		$	11,980			$	10,176			$	23,430			$	19,559
	Distributions to Preferred Stockholders		(1,871	)			(1,195	)			(3,058	)			(2,390	)
Funds From Operations Attributable to Common Stockholders		$	10,109			$	8,981			$	20,372			$	17,169
	Amortization of Intangibles to Lease Income		244				627				718				1,306
	Less: Effect of Dilutive Interest Related to 2025 Notes (1)		—				—				—				—
Core Funds From Operations Attributable to Common Stockholders		$	10,353			$	9,608			$	21,090			$	18,475
Adjustments:
	Straight-Line Rent Adjustment		(346	)			122				(1,039	)			(129	)
	COVID-19 Rent Repayments		—				17				—				43
	Other Depreciation and Amortization		(3	)			(57	)			(7	)			(116	)
	Amortization of Loan Costs, Discount on Convertible Debt, andCapitalized Interest		297				229				518				437
	Non-Cash Compensation		750				862				2,137				1,934
Adjusted Funds From Operations Attributable to Common Stockholders		$	11,051			$	10,781			$	22,699			$	20,644
	FFO Attributable to Common Stockholders per Common Share - Diluted(1)	$	0.44			$	0.40			$	0.90			$	0.76
	Core FFO Attributable to Common Stockholders per Common Share -Diluted (1)	$	0.45			$	0.43			$	0.93			$	0.82
	AFFO Attributable to Common Stockholders per Common Share - Diluted(1)	$	0.48			$	0.48			$	1.00			$	0.91
(1)	For the three and six months ended June 30, 2024 and 2023, interest related to the 2025 Convertible Senior Notes was excluded from net income (loss) attributable to the Company to derive FFO, as the impact to net income (loss) attributable to common stockholders would be anti-dilutive. Further, the weighted average shares used to compute per share amounts for FFO Attributable to Common Stockholders per Common Share – Diluted, Core FFO Attributable to Common Stockholders per Common Share - Diluted, and AFFO Attributable to Common Stockholders per Common Share - Diluted do not reflect any dilution related to the ultimate settlement of the 2025 Convertible Senior Notes.

CTO Realty Growth, Inc.Non-GAAP Financial MeasuresReconciliation of Net Debt to Pro Forma EBITDA(Unaudited)(In thousands)
		Three Months EndedJune 30, 2024
Net Income Attributable to the Company		$	1,183
	Depreciation and Amortization of Real Estate		11,532
	Gain on Disposition of Other Assets		(139	)
	Provision for Impairment		67
	Unrealized Gain on Investment Securities		(663	)
	Distributions to Preferred Stockholders		(1,871	)
	Amortization of Intangibles to Lease Income		244
	Straight-Line Rent Adjustment		(346	)
	Other Depreciation and Amortization		(3	)
	Amortization of Loan Costs, Discount on Convertible Debt, and Capitalized Interest		297
	Non-Cash Compensation		750
	Other Non-Recurring Items (1)		(303	)
	Interest Expense, Net of Amortization of Loan Costs and Discount on ConvertibleDebt		5,308
EBITDA		$	16,056
Annualized EBITDA		$	64,224
	Pro Forma Annualized Impact of Current Quarter Investments and Dispositions, Net(2)		(244	)
Pro Forma EBITDA		$	63,980
Total Long-Term Debt		$	482,661
	Financing Costs, Net of Accumulated Amortization		1,048
	Unamortized Convertible Debt Discount		125
	Cash and Cash Equivalents		(4,794	)
Net Debt		$	479,040
	Net Debt to Pro Forma EBITDA		7.5	x
(1)	Includes non-recurring items including termination fees, forfeitures of tenant security deposits, and certain adjustments to estimates related to recently acquired property CAM reconciliations.
(2)	Reflects the pro forma annualized impact on Annualized EBITDA of the Company’s investments and disposition activity during the three months ended June 30, 2024.

Contact:	Philip R. Mays
	Senior Vice President, Chief Financial Officer & Treasurer
	(407) 904-3324
	pmays@ctoreit.com