Item 2.01.Completion of Acquisition or Disposition of Assets.
On October 14, 2022, CTO Realty Growth, Inc. (the "Company" or "CTO") completed the acquisition of a class A, grocery-anchored mixed-use asset in the Richmond, Virginia Metropolitan Area ("West Broad Village" or the "Property") from a certain institutional owner (the "Seller") for a purchase price of $93.85 million. There is no material relationship between the Company or any director or officer of the Company, or any associate of any director or officer of the Company, and the Seller, other than with respect to the Company's acquisition of West Broad Village. The acquisition was funded using (a) available cash, (b) 1031 like-kind exchange proceeds generated from certain of the Company's previously completed property dispositions, and (c) proceeds from the Company's revolving credit facility, and was structured as a reverse like-kind exchange in order to account for possible future dispositions of income properties by the Company.
This Current Report on Form 8-K includes the historical audited financial statements of West Broad Village and the pro forma consolidated financial information required by Items 9.01(a) and 9.01(b) of Form 8-K related to the Property.
The pro forma financial information included in this Current Report on Form 8-K has been presented for informational purposes only, as required by Form 8-K. It does not purport to represent the actual results of operations that the Company and West Broad Village would have achieved had the Company held the assets of the Property during the periods presented in the pro forma financial information and is not intended to project the future results of operations that the Company may achieve after the acquisition of West Broad Village.
Item 7.01.Regulation FD Disclosure.
On October 17, 2022, the Company issued a press release announcing the completion of the acquisition of West Broad Village. A copy of the press release is attached hereto as Exhibit 99.3. The information contained in Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.3, is being furnished and shall not be deemed “filed” for any purposes, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. Such information shall not be incorporated by reference into any filing of the Company, whether made before or after the date hereof, unless it is specifically incorporated by reference therein.
Item 9.01.Financial Statements and Exhibits.
| (a) | Financial Statements of Business Acquired |
The financial statements that are required to be filed pursuant to this item are being filed with this Current Report on Form 8-K as Exhibit 99.1 and are incorporated by reference herein.
| (b) | Pro Forma Financial Information |
The pro forma financial information that is required to be filed pursuant to this item is being filed with this Current Report on Form 8-K as Exhibit 99.2 and is incorporated by reference herein.
(d)Exhibits
23.1Consent of Grant Thornton LLP
99.1Audited Financial Statements
| ● | Report of Independent Certified Public Accountants |
| ● | Historical Summary of Revenues and Direct Costs of Revenues of West Broad Village for the Six Months Ended June 30, 2022 (Unaudited) and the Year Ended December 31, 2021 (Audited) |
| ● | Notes to Historical Summary of Revenues and Direct Costs of Revenues |
99.2Pro Forma Financial Information
| ● | Summary of Unaudited Pro Forma Consolidated Financial Statements |
| ● | Unaudited Pro Forma Consolidated Balance Sheet of CTO Realty Growth, Inc. as of June 30, 2022 |
| ● | Unaudited Pro Forma Consolidated Statements of Operations of CTO Realty Growth, Inc. for the Six Months Ended June 30, 2022 and the Year Ended December 31, 2021 |
