CTO Realty Growth announces contract to sell the remainder
DAYTONA BEACH, Fla., June 24, 2021 (GLOBE NEWSWIRE) – CTO Realty Growth, Inc. (NYSE: CTO) (the “Company” or “CTO”) today announced the joint venture entity that owns the remaining land Daytona Beach’s portfolio of approximately 1,600 acres (the “Land Company”) has entered into a binding contract with Timberline Acquisition Partners, a subsidiary of Timberline Real Estate Partners (“Timberline”), for the sale of substantially all of its remaining land, including any land that was previously under contract, for $ 67.0 million (the “Land Business Sale”). The CTO’s proceeds after distributions to the other member of the real estate company and before taxes are estimated to be approximately $ 25.6 million. Closing is expected to occur prior to year end and is subject to the performance of due diligence and standard closing conditions.
The Company plans to use the proceeds from the sale of the land business to repay outstanding amounts under its unsecured revolving credit facility and for general business and working capital purposes, which may include the financing of acquisitions of income-producing properties.
“I am delighted to announce the contract for the sale of all of the remaining land in our joint venture, which represents the culmination of a multi-year transformation and monetization of the Company’s interests in its various inherited land holdings,” said said John P. Albright, President and CEO of CTO Realty Growth. “By moving away from land transactions and entitlement activities, we will now be able to fully align the company’s resources with our core strategy of growing our income property portfolio and maximizing the flow of income. cash flow from our assets held. This transaction also unlocks substantial non-income producing equity and allows us to redeploy the capital into additional income generating properties, which will be highly accretive to earnings per share, improve our dividend payout ratios and continue to position the Company. as a high growth, first class diversified real estate investment fund.
Commenting on the transaction, Stan Nix, CEO of Timberline, said: “This transaction underscores our belief in the continued growth of central Florida, offering a range of strategic development opportunities, including an institutional grade logistics fleet of 4, 5 million square feet, many multi-family residential sites and a multitude of retail and other commercial uses. We look forward to continuing the excellent work that John and the CTO team have done over the past few years to create a commercially vibrant destination in West Daytona.
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 properties, primarily retail based, located in higher growth markets in the United States. The CTO also owns an approximate 16% interest in Alpine Income Property Trust, Inc. (NYSE: PINE), a publicly traded net leasehold REIT.
We encourage you to review our most recent investor presentation, which is available on our website at www.ctoreit.com.
Certain statements 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 generally be identified by words such as “believe”, “estimate”, “expect”, “intend”, “anticipate”, “will”, “could”, “could”, “Should”, “,” potential “,” predict “,” foresee “,” project “and similar expressions, as well as variations or negatives of these words.
Although forward-looking statements are made on the basis of current expectations and reasonable beliefs of management regarding future developments and their potential effect on the Company, a number of factors could cause the actual results of the Company to differ materially. those set forth in forward-looking statements. These factors may include, but are not limited to: the Company’s ability to continue to qualify as a REIT; the Company’s exposure to changes in US federal and state tax laws, including changes in REIT requirements; generally unfavorable economic and real estate conditions; the geographic spread, severity and ultimate duration of pandemics such as the recent outbreak of the novel coronavirus, measures that can be taken by government authorities to contain or address the impact of these pandemics, and the potential negative impacts of these pandemics on the global economy and the financial condition and results of operations of the Company; 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 of the business or assets of PINE or the business formed when the Company sold its controlling interest in the entity that held the remaining land portfolio of the Company, of which the Company retained an interest; the completion of 1,031 exchange transactions; the availability of investment properties that meet the Company’s investment objectives and criteria; uncertainties associated with obtaining required government permits and meeting 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 year ended December 31, 2020 or Form 10-Q for the quarter ended March 31, 2021, as filed with the SEC.
There can be no assurance that future developments will be consistent with management’s expectations or that the effects 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 makes no commitment to update the information contained in this press release to reflect subsequent events or circumstances.
|Contact:||Matthew M. Partridge|
|Senior Vice-President, Chief Financial Officer and Treasurer|