CTO - Earnings call transcript Q2 2020 | CTO Realty Growth, Inc.

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Operator

Good day, and welcome to the CTO Realty Growth Q2 Earnings Conference Call. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to CEO and President, John Albright. Please go ahead.

John Albright

morning. Good calling Realty for -- Conference for Call. Earnings in you Growth CTO Call Thank call Mark over to the hand I'll to disclaimers. read Patten some him for

Mark Patten

Thanks, everyone. John. Good morning,

be made. time Factors filings results greater make were risks During and and reflect that today, The from we our actual changes forward-looking revisions statements the the with after in company's may cause and to release under in certain matters and expectations earnings could considered the results company's law. are to SEC in to future may detail statements significantly statements are to release federal our materially not the securities be night. we'll to differ these issued disclosed statements, that differ from time last call actual discussed statements forward-looking these may forward-looking from in

our note website. night, available is that now we me Let -- filed last presentation QX which our investor on QX

at Our reference find investor forward to more presentation this provides been that thing just work that for this a add And John. during many I we and wanted and the things one it's the may I look back with years I'll last team, work CTO to for turn forward. company and John useful to to call. going privilege additional information good it you made to X over

John Albright

we're everything questions. Mark's he Essential, contact see his the for to and all in in and but and for we have here I done us. Mark, go, Operator, hopefully, sorry you, appreciated and CTO him we're Thank at think with him close we ready at company, endeavors future well stays wish Alpine

Operator

[Operator Instructions].

B. from today Craig The Kucera come first Riley will FBR. with question

Craig Kucera

good getting say know you Mark, forget, wanted years just at and well. over appreciated sincerely I Essential Before working and as you the with wish you luck several Properties how much past to to I I

Mark Patten

it that. Craig. as I've appreciate well. enjoyed I Thanks,

Craig Kucera

me first I than Can the kind your the looking start I'll question. lighter with I on want start revenue top Well, what issues with for. of line that made was was would helpful. of abatements? or terrific. Well, whether income-producing related of that to write-offs you related side adjustments were maybe walk that there that's to through any to tenant be Anything to some sort COVID-XX, the

John Albright

Yes, the -- can the or I to specifics going figure cash adjustment the some we'll that's or out side. where you're it think an the try deferrals, would rent and just side But data. I be to get exact terms make sort of -- of really on in you

accrual the For the part, most we've been whole way.

So you, I little it it of lighter had significant lighter it's less be P&L be a not from a by why dispositions sure quarter. to but bit the standpoint, just trying think what than some I'm really, about fact the might that be might than for which think the other abatements, the we I'm if probably in $XXX,XXX. abatements, you defined might about think

then we've Craig, of number -- dive obviously, to and ground get portfolio, fairly we're off, back a amount how of as But the loan happy is that you of So and much to we're you mentioned, a have which there's and fair -- you. deeper high-yielding forth. obviously, and a if Mark kind sold have so sold leases do

Craig Kucera

that in out not included that of -- -- had would I come quarter there? I think Or I the or that yet Is about Would fair. in sort That's guess to so guess immediately been of assessment? that worked out. second of fair there's rent. that pool that X% in a regard is

John Albright

for. be get kind of to the Yes. something And Hour to on And extent identified revenue, where have I the adjust you it's ahead it investor that assessment be not it'd a past actually fair will our Fitness, is as would I chance because is tell down a in think prudent the at had you major that's there. probably and to Craig, that that Yes, we we Church. we -- part only period Fitness went but presentation, XX very all pages XX staying Falls Hour the interested and look of that would

actually are that fitness, So us. only they there but in site. strong and other reached other are that it bankruptcy, reject industries, operators, of interested didn't to in But not they've very out credits

how we going rent. scratching But haven't I okay, very strong see people know and rep a down and of in even is that at look heads location, tenant is getting Fitness tenant when broker, so and they we're their be probably it property balance groups. in hired to a from list And Hour are long like, kind on XX different for a

Craig Kucera

the think the That to larger around that today? Great. Alpine some you press Or you conversion. Do the Circling think is I it income, a was I you questions. number, TBD? looked put was something my when have reconversion of do sense the would what is that I a you still one of is in guys today? appreciate have the E&P sense in be million of a of last of the color there. release currently was Kind at the the what REIT news created I distribution occurred time that range. in out if where was $XX right

John Albright

It's over has given income of it's the a I E&P. year, last -- question. our appreciate our sort some it. additional performance generated Actually, great

So probably million the category. in it's $XX million $XX to more kind of

or so. a it So maybe if you million call $XX

Craig Kucera

at And have Got cash REIT it stock in much a, guess, of XX% quarter what about that the of if you between occurs? how of it. cash. component? time, would publicly fourth I there was do some -- time, paid investors something be be similar in what cash the conversion that mix at in you think the something last in year. on point paid put out that stock. that versus expect I believe I do to would and you've sort think Should control I was a over And

John Albright

get certainly the choose, to to And had tax has SEC of of -- The IRS out get in to recently, really the the and do conversions but dividend. But COVID-driven enough think in be to the was it's of up in the to a ways, now and cash a most the one so thing. allowing where company to not used the that come the been out permitted. really shareholders split, But I permission. in But I'm and XX-XX basically many ruling IRS XX% the to think is of XX-XX portion has it's going that you sort theory IRS terms go cash. up the the come you kind could that. sure you that, approval. cover that obviously XX-XX -- a the also, to general XX-XX the codified is if letter it but is -- it's I Board private you Well, on

Craig Kucera

noted I investor share in talking your now in And presentation flow. were you that operating about Great. Okay. cash $X per

great. the I based is and want the the I of portfolio be dispositions? just think just color Any the just on would quarter. was quarter, last then there X% existing that to result confirm, in it

John Albright

cash we off. loans redeployed. being of $XX again, have that's Yes. that in to properties, It's the waiting majority sold sold properties on, sold million down, based be the that And of

it. bulk the So that's of

Craig Kucera

makes No, circling loan sense. it. you investment. Got back just as carry that a what And to remaining

lease? lease I is the is there. on think investment Hotel ground yield ground what the you that primary Can Carpenter the remind me

John Albright

rate that ground way the of it cap it with lease low escalates starts It in a Then starts set every rather rather of -- kind X.XX%. -- X% year type up, rapidly.

at expectation could be nice point, but that ground where likely, most the escalating pace. position a operator that so buys fairly we get is it out lease And that's the rapid at some lease a

Craig Kucera

your want I to talk Okay. about guidance.

XXXX, debt in of $XX skew anywhere end call or the of toward looking of the you're But Is and considering? to at of high that. or capacity be acquisitions. have to I talk office what you at? additional, million existing retail the properties think the can there it, the you looking any from capital million pipeline an maybe at of $XX upwards Clearly, you're, you're about types

John Albright

Yes.

an a motivation in for acquisitions. are clearly, have in environment people sell aren't out I assets, but their is obviously The the to a strange because sellers looking looking this selling it's will of that you is assets, that. people fear the asset. a higher-quality be some time though be little sell, market, So to tell time to to just that even great a are out terrible they the

risk higher wider. that then cap makes So seeing for rates high-quality cap with rates what very seeing you're or are so The interest being not you're rates properties, And sense. low, that the properties as core. compressed, are obviously, with is

opportunistic of higher So with we're kind looking acquisitions higher-yielding for potential, more returns.

office on obviously, as having spent majority more side. been the of -- so our the And we've the flavor retail, on the -- has side, pipeline does, headwinds on it the office of for

Craig Kucera

And of expectations. ahead disposition your that XXXX Great. know I you're

there? done quarter. single-tenant the assets Or ground you've rest the or think more looking of sold of hit this in Wawa you here earlier dispose You still less? you Are the or lease year, to a maybe

John Albright

Yes.

been situations, all as cap So done, basis, do. had able them. a long. day But smaller aggressively we more sell not rate type there on on execute there's selling ground since to we've we're where lot a the we'll lease Obviously, to given

there will more in year. probably the So be sales latter the half some of

Craig Kucera

is $XXX In go the value I venture estimate land to joint to Magnetar. off million. anywhere want you your gears to with change $XX from million remaining the that land put and presentation,

is $XX that inclusive contract? confirm, to that that outside contract? million $XX Or of under of Just under the is million that's

John Albright

That's inclusive.

Operator

Instructions]. from Advisors. question Gilbert The with Linden come Craig next will [Operator

Craig Gilbert

is One I on a just unresolved. had the few.

looks that going to is what's for other, there? and Can So speak the And it, majority X-or-so XX for recovery? percent Hour it Fitness. you any like on prospects maybe the call of

John Albright

Yes.

really space Atlanta; larger small most our the in centers Perimeter, of or Crossroads; balance Strand shop So The Jacksonville. in like is

reasons, we've I of X a interest concern realize, would in I mainly it's tenant weeks, smaller the people X, operators. last say, in lot the had lot a that obvious dramatically. would for spaces say retail. So has of will have that increased lately. these I for activity say

more unresolved. really It's want finding feel And chasing not confident. these less operators stronger It's vacancy. that new so or very who we

opportunity operator. there, to we centers that, a up So strong the really stronger given really trade that's with have

Craig Gilbert

Got it. we re-shutdowns. Florida, maybe it Georgia, that to then where of obviously, manage the you could are trying I it. risk. states, geographic thinking Got that? just looks you're just And in like, How the some mean, Texas, And diversity, see on about

John Albright

to be being a Even base. tenant close our time down if spending it, we that in I solid Yes. to we're not have again, an you, a about honest flows mean were worrying lot shut of to issue. never with cash we came

was So best the that Daytona couple -- a had is and mean, restaurants in of some why trouble the the bit the -- the days Florida COVID is in side, in reason little last weeks. of this on maybe I in had of ever they've our Beach

I in about, not are. do in happens statewide I decides when the at not here I town don't So to week, not a people in think But on the -- And just we're mean, are and to kind I that's talking what to say about national or least we think a trying statewide. basis, more shutdown, that something, would I basis don't on a whether think city a talking where going basis. but it's municipal I Texas guess are don't it. they're Florida, I'm what COVID given back of here on last was

Craig Gilbert

Okay.

the then And last Okay. the just the of on timing one is reconversion.

to rather guess, release driver, the as as of -- the the of soon waiting it than go? press later? is, how I think outer said could I sooner what for late the on it XXXX. main think And you're late I bound guess, you kind What come

John Albright

great way, by asking about that. and thanks the question, Well, for

Corp of there, of into So sequencing-wise, the from we've an meeting. kind I to REIT. there the alluded back merge a if have happen. S-X got are to that to things But you couple C file up shareholder to the

you time the go that you experienced through a filer. So process. even an unknown And we're SEC to of though time, -- file a is amount registration any got statement, that's fairly

of upwards days. be could it So XX

shareholder So for a gating of down to kind items route, there. file kind the get and your are you if you, those soon that, that go you proxy of after meeting, then

Operator

over back will Albright like today's I would to This it question-and-answer remarks. closing now turn conclude session. for John Mr. to any

John Albright

the forward quarter. through company. to Thank you, with throughout of talking and CFO, you, look Again, for Mark being you Thank everyone. thank Patten our progress a undergoing we lot And for you. changes the Bye.

Operator

The today's now attending disconnect. Thank concluded. conference you you and now for has presentation, may

CTO Realty Growth (CTO) 2 Aug 202020 Q2 Earnings call transcript