Consolidated Tomoka Land Earnings 2021-03-31

Consolidated Tomoka Land Earnings 2021-03-31

CTO 10Q Quarterly Report

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 01-11350

CTO REALTY GROWTH, INC.

(Exact name of registrant as specified in its charter)


Maryland		59-0483700
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

1140 N. Williamson Blvd., Suite 140
Daytona Beach, Florida		32114
(Address of principal executive offices)		(Zip Code)

(386) 274-2202

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class:	Trading Symbol	Name of each exchange on which registered:
COMMON STOCK, $0.01 PAR VALUE	CTO	NYSE

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer	☐	Accelerated Filer	☒

Non-accelerated Filer	☐	Smaller Reporting Company	☐

		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 22, 2021, there were 5,958,589 shares of the registrant’s common stock, $0.01 par value per share, outstanding.

Table of Contents

INDEX


		Page
		No.
PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

Consolidated Balance Sheets – March 31, 2021 (Unaudited) and December 31, 2020		3

Consolidated Statements of Operations – Three months ended March 31, 2021 and 2020 (Unaudited)		4

Consolidated Statements of Comprehensive Income (Loss) – Three months ended March 31, 2021 and 2020 (Unaudited)		5

Consolidated Statements of Stockholders’ Equity – Three months ended March 31, 2021 and 2020 (Unaudited)		6

Consolidated Statements of Cash Flows – Three months ended March 31, 2021 and 2020 (Unaudited)		7

Notes to Consolidated Financial Statements (Unaudited)		9

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		45

Item 3. Quantitative and Qualitative Disclosures About Market Risk		57

Item 4. Controls and Procedures		57

PART II—OTHER INFORMATION		57

Item 1. Legal Proceedings		57

Item 1A. Risk Factors		58

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		58

Item 3. Defaults Upon Senior Securities		58

Item 4. Mine Safety Disclosures		58

Item 5. Other Information		58

Item 6. Exhibits		59

SIGNATURES		60

Table of Contents

PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CTO REALTY GROWTH, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)


	As of
	(Unaudited) March 31, 2021		December 31, 2020
ASSETS
Real Estate:
Land, at cost	$	179,923	$	166,512
Building and Improvements, at cost		317,870		305,614
Other Furnishings and Equipment, at cost		679		672
Construction in Process, at cost		551		323
Total Real Estate, at cost		499,023		473,121
Less, Accumulated Depreciation		(33,319)		(30,737)
Real Estate—Net		465,704		442,384
Land and Development Costs		7,074		7,083
Intangible Lease Assets—Net		53,215		50,176
Assets Held for Sale—See Note 25		4,505		833
Investment in Joint Ventures		48,686		48,677
Investment in Alpine Income Property Trust, Inc.		35,408		30,574
Mitigation Credits		2,622		2,622
Commercial Loan and Master Lease Investments		38,417		38,320
Cash and Cash Equivalents		4,691		4,289
Restricted Cash		609		29,536
Refundable Income Taxes		277		26
Other Assets—See Note 13		12,227		12,180
Total Assets	$	673,435	$	666,700
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Accounts Payable	$	739	$	1,047
Accrued and Other Liabilities—See Note 19		7,042		9,090
Deferred Revenue—See Note 20		3,463		3,319
Intangible Lease Liabilities—Net		23,396		24,163
Liabilities Held for Sale—See Note 25		831		831
Deferred Income Taxes—Net		3,343		3,521
Long-Term Debt		280,248		273,830
Total Liabilities		319,062		315,801
Commitments and Contingencies—See Note 23
Stockholders’ Equity:
Preferred Stock – 100,000,000 shares authorized; $0.01 par value, no shares issued or outstanding at March 31, 2021; 50,000 shares authorized; $100.00 par value, no shares issued or outstanding at December 31, 2020		—		—
Common Stock – 500,000,000 shares authorized; $0.01 par value, 5,957,079 shares issued and outstanding at March 31, 2021; 25,000,000 shares authorized; $1.00 par value, 7,310,680 shares issued and 5,915,756 shares outstanding at December 31, 2020		60		7,250
Treasury Stock – 0 shares at March 31, 2021 and 1,394,924 shares at December 31, 2020		—		(77,541)
Additional Paid-In Capital		13,341		83,183
Retained Earnings		341,645		339,917
Accumulated Other Comprehensive Loss		(673)		(1,910)
Total Stockholders’ Equity		354,373		350,899
Total Liabilities and Stockholders’ Equity	$	673,435	$	666,700

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

CTO REALTY GROWTH, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except share, per share and dividend data)


	Three Months Ended
	March 31,		March 31,
	2021		2020
Revenues
Income Properties	$	11,449	$	11,003
Management Fee Income		669		702
Interest Income from Commercial Loan and Master Lease Investments		701		1,052
Real Estate Operations		1,893		81
Total Revenues		14,712		12,838
Direct Cost of Revenues
Income Properties		(2,917)		(2,113)
Real Estate Operations		(82)		(1,524)
Total Direct Cost of Revenues		(2,999)		(3,637)
General and Administrative Expenses		(3,132)		(3,092)
Impairment Charges		—		(1,905)
Depreciation and Amortization		(4,830)		(4,552)
Total Operating Expenses		(10,961)		(13,186)
Gain on Disposition of Assets		708		—
Gain on Extinguishment of Debt		—		637
Other Gains and Income		708		637
Total Operating Income		4,459		289
Investment and Other Income (Loss)		5,332		(13,186)
Interest Expense		(2,444)		(3,453)
Income (Loss) Before Income Tax Expense		7,347		(16,350)
Income Tax Benefit		438		4,088
Net Income (Loss)	$	7,785	$	(12,262)

Per Share Information—See Note 15:
Basic Net Income (Loss) per Share	$	1.32	$	(2.60)
Diluted Net Income (Loss) per Share	$	1.32	$	(2.60)

Weighted Average Number of Common Shares
Basic		5,879,085		4,711,396
Diluted		5,879,085		4,711,396

Dividends Declared and Paid	$	1.00	$	0.25

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

CTO REALTY GROWTH, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited, in thousands)


	Three Months Ended
	March 31, 2021		March 31, 2020
Net Income (Loss)	$	7,785	$	(12,262)
Other Comprehensive Income (Loss):
Cash Flow Hedging Derivative - Interest Rate Swap (Net of Income Tax Expense of $0 and $(0.5) million, respectively)		1,237		(1,373)
Total Other Comprehensive Income (Loss), Net of Income Tax		1,237		(1,373)
Total Comprehensive Income (Loss)	$	9,022	$	(13,635)

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

CTO REALTY GROWTH, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited, in thousands, except per share data)

For the three months ended March 31, 2021:


									Accumulated
					Additional				Other
	Common		Treasury		Paid-In		Retained		Comprehensive		Stockholders'
	Stock		Stock		Capital		Earnings		Income (Loss)		Equity
Balance January 1, 2021	$	7,250	$	(77,541)	$	83,183	$	339,917	$	(1,910)	$	350,899
Net Income		—		—		—		7,785		—		7,785
Vested Restricted Stock and Performance Shares		—		—		(436)		—		—		(436)
Exercise of Stock Options and Stock Issuance		—		—		292		—		—		292
Stock Compensation Expense from Restricted Stock Grants and Equity Classified Stock Options		—		—		669		—		—		669
Par Value $0.01 per Share and Treasury Stock Derecognized at January 29, 2021		(7,190)		77,541		(70,351)		—		—		—
Equity Issuance Costs		—		—		(16)		—		—		(16)
Dividends Declared for the Period		—		—		—		(6,057)		—		(6,057)
Other Comprehensive Income		—		—		—		—		1,237		1,237
Balance March 31, 2021	$	60	$	—	$	13,341	$	341,645	$	(673)	$	354,373

For the three months ended March 31, 2020:


									Accumulated
					Additional				Other
	Common		Treasury		Paid-In		Retained		Comprehensive		Stockholders'
	Stock		Stock		Capital		Earnings		Income (Loss)		Equity
Balance January 1, 2020	$	6,017	$	(73,441)	$	26,690	$	326,073	$	74	$	285,413
Net Loss		—		—		—		(12,262)		—		(12,262)
Stock Repurchase		—		(3,915)		—		—		—		(3,915)
Equity Component of Convertible Debt		—		—		5,248		—		—		5,248
Vested Restricted Stock and Performance Shares		24		—		(562)		—		—		(538)
Stock Issuance		4		—		237		—		—		241
Stock Compensation Expense from Restricted Stock Grants and Equity Classified Stock Options		—		—		578		—		—		578
Dividends Declared for the Period		—		—		—		(1,184)		—		(1,184)
Other Comprehensive Loss, Net of Income Tax		—		—		—		—		(1,373)		(1,373)
Balance March 31, 2020	$	6,045	$	(77,356)	$	32,191	$	312,627	$	(1,299)	$	272,208

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

CTO REALTY GROWTH, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)


	Three Months Ended
	March 31,		March 31,
	2021		2020
Cash Flow from Operating Activities:
Net Income (Loss)	$	7,785	$	(12,262)
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities:
Depreciation and Amortization		4,830		4,552
Amortization of Intangible Liabilities to Income Property Revenue		(396)		(474)
Amortization of Deferred Financing Costs to Interest Expense		165		150
Amortization of Discount on Convertible Debt		310		504
Gain on Disposition of Property, Plant, and Equipment and Intangible Assets		(708)		—
Gain on Extinguishment of Debt		—		(637)
Impairment Charges		—		1,905
Accretion of Commercial Loan Origination Fees		—		(88)
Non-Cash Imputed Interest		(103)		(103)
Deferred Income Taxes		(178)		(6,473)
Unrealized (Gain) Loss on Investment Securities		(4,834)		13,706
Non-Cash Compensation		958		819
Decrease (Increase) in Assets:
Refundable Income Taxes		(252)		—
Assets Held for Sale		(1)		—
Land and Development Costs		9		(73)
Impact Fees and Mitigation Credits		—		(237)
Other Assets		143		(574)
Increase (Decrease) in Liabilities:
Accounts Payable		(308)		(146)
Accrued and Other Liabilities		(1,225)		2,888
Deferred Revenue		143		(196)
Income Taxes Payable		—		559
Net Cash Provided By Operating Activities		6,338		3,820
Cash Flow from Investing Activities:
Acquisition of Property, Plant, and Equipment		(39,115)		(137,997)
Acquisition of Commercial Loan Investments and Master Lease Investments		—		(6,754)
Cash Contribution to Interest in Joint Venture		(9)		(5)
Proceeds from Disposition of Property, Plant, and Equipment, Net, and Assets Held for Sale		4,702		—
Net Cash Used In Investing Activities		(34,422)		(144,756)
Cash Flow from Financing Activities:
Proceeds from Long-Term Debt		84,000		56,641
Payments on Long-Term Debt		(77,183)		(21,589)
Cash Paid for Loan Fees		(873)		(1,880)
Cash Payments for Exercise of Stock Options and Stock Issuance		(4)		—
Cash Used to Purchase Common Stock		—		(3,915)
Cash Paid for Vesting of Restricted Stock		(436)		(538)
Cash Paid for Equity Issuance Costs		(16)		—
Dividends Paid		(5,929)		(1,184)
Net Cash Provided By (Used In) Financing Activities		(441)		27,535
Net Decrease in Cash and Cash Equivalents		(28,525)		(113,401)
Cash and Cash Equivalents, Beginning of Period		33,825		134,904
Cash and Cash Equivalents, End of Period	$	5,300	$	21,503

Reconciliation of Cash to the Consolidated Balance Sheets:
Cash and Cash Equivalents	$	4,691	$	18,593
Restricted Cash		609		2,910
Total Cash	$	5,300	$	21,503

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

CTO REALTY GROWTH, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

(Unaudited, in thousands)

Price	58.72	EPS	6
Shares	5	P/E	10
MCap	297	P/FCF	18
Net Debt	272	EBIT	42
TEV	569	TEV/EBIT	14
TTM 2019-09-30, in MM, except price, ratios

10-Q	2021-03-31	Filed 2021-04-29
10-K	2020-12-31	Filed 2021-03-05
10-Q	2020-09-30	Filed 2020-11-06
10-Q	2020-06-30	Filed 2020-08-10
10-Q	2020-03-31	Filed 2020-05-11
10-K	2019-12-31	Filed 2020-03-06
10-Q	2019-09-30	Filed 2019-10-23
10-Q	2019-06-30	Filed 2019-07-31
10-Q	2019-03-31	Filed 2019-04-30
10-K	2018-12-31	Filed 2019-02-28
10-Q	2018-09-30	Filed 2018-10-26
10-Q	2018-06-30	Filed 2018-08-01
10-Q	2018-03-31	Filed 2018-05-01
10-K	2017-12-31	Filed 2018-02-28
10-Q	2017-09-30	Filed 2017-10-30
10-Q	2017-06-30	Filed 2017-08-09
10-Q	2017-03-31	Filed 2017-05-09
10-K	2016-12-31	Filed 2017-02-24
10-Q	2016-09-30	Filed 2016-10-28
10-Q	2016-06-30	Filed 2016-07-29
10-Q	2016-03-31	Filed 2016-05-03
10-K	2015-12-31	Filed 2016-03-01
10-Q	2015-09-30	Filed 2015-10-30
10-Q	2015-06-30	Filed 2015-07-31
10-Q	2015-03-31	Filed 2015-05-06
10-K	2014-12-31	Filed 2015-02-27
10-Q	2014-09-30	Filed 2014-10-28
10-Q	2014-06-30	Filed 2014-08-01
10-Q	2014-03-31	Filed 2014-04-30
10-K	2013-12-31	Filed 2014-03-10
10-Q	2013-09-30	Filed 2013-10-31
10-Q	2013-06-30	Filed 2013-07-30
10-Q	2013-03-31	Filed 2013-05-03
10-K	2012-12-31	Filed 2013-03-08
10-Q	2012-09-30	Filed 2012-11-07
10-Q	2012-06-30	Filed 2012-08-08
10-Q	2012-03-31	Filed 2012-05-09
10-K	2011-12-31	Filed 2012-03-15
10-Q	2011-09-30	Filed 2011-11-09
10-Q	2011-06-30	Filed 2011-08-09
10-Q	2011-05-09	Filed 2011-05-09
10-K	2010-12-31	Filed 2011-03-11
10-Q	2010-11-09	Filed 2010-11-09
10-Q	2010-08-16	Filed 2010-08-16
10-Q	2010-05-04	Filed 2010-05-10
10-K	2009-12-31	Filed 2010-03-12

8-K	2021-02-16	Earnings, Regulation FD, Exhibits
8-K	2020-12-21	Other Events, Exhibits
8-K	2020-12-17	Other Events, Exhibits
8-K	2020-11-20
8-K	2020-11-09
8-K	2020-10-28
8-K	2020-09-08
8-K	2020-09-03
8-K	2020-07-29
8-K	2020-07-29
8-K	2020-06-30
8-K	2020-04-29
8-K	2020-04-28
8-K	2020-04-28
8-K	2020-02-21
8-K	2020-02-12
8-K	2020-02-12
8-K	2020-02-03
8-K	2020-01-24
8-K	2019-12-09
8-K	2019-11-26
8-K	2019-10-23
8-K	2019-10-18
8-K	2019-10-16
8-K	2019-10-16
8-K	2019-10-15
8-K	2019-07-17
8-K	2019-07-17
8-K	2019-06-03
8-K	2019-05-24
8-K	2019-04-24
8-K	2019-04-24
8-K	2019-04-16
8-K	2019-04-16
8-K	2019-02-05
8-K	2019-02-05
8-K	2018-10-17
8-K	2018-10-17
8-K	2018-10-17
8-K	2018-07-18
8-K	2018-07-18
8-K	2018-06-04
8-K	2018-04-25
8-K	2018-04-25
8-K	2018-04-17
8-K	2018-04-17
8-K	2018-04-09
8-K	2018-02-21
8-K	2018-02-07
8-K	2018-02-07

EX-31.1	cto-20210331xex31d1.htm
EX-31.2	cto-20210331xex31d2.htm
EX-32.1	cto-20210331xex32d1.htm
EX-32.2	cto-20210331xex32d2.htm

Three Months Ended

March 31,

March 31,