CTO Realty Growth, Inc. (NYSE:CTO) Q2 2023 Earnings Conference Call July 28, 2023 9:00 AM ET

Company Participants

Matt Partridge - Chief Financial Officer

John Albright - President & Chief Executive Officer

Conference Call Participants

Matthew Erdner - JonesTrading

Rob Stevenson - Janney Montgomery Scott

Ed Najarian - EF Hutton

Craig Kucera - B. Riley Securities

R.J. Milligan - Raymond James

Michael Gorman - BTIG

Operator

Good day, and thank you for standing by. Welcome to CTO Realty Growth Second Quarter 2023 Operating Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to Matt Partridge, Chief Financial Officer. Please go ahead.

Matt Partridge

Welcome, everyone. Thank you for joining us this morning for CTO Realty Growth's second quarter 2023 operating results conference call. Joining me today is our CEO and President, John Albright.

Before we begin, I'd like to remind everyone that many of our comments today are considered forward-looking statements under federal securities law. The company's actual future results may differ significantly from the matters discussed in these forward-looking statements. And we undertake no duty to update these statements. Factors and risks that could cause actual results to differ materially from expectations are disclosed from time to time in greater detail in the company's Form 10-K, Form 10-Q and other SEC filings. You can find our SEC reports, earnings release, supplemental and most recent investor presentation on our website at ctoreit.com.

With that, I'll now hand it over to John.

John Albright

Thanks Matt, and good morning everyone. We've had a busy second quarter as we've made progress on a number of fronts. During the quarter, we invested in several high-quality assets in what has been an otherwise quiet transactions market. We continued to make progress on our property repositioning programs, delivered another quarter of strong leasing activity, and we continue to build on our foundation for future growth.

Starting with our investments for the quarter, we made additional progress in converting our Exchange at Gwinnett development loan into fee simple ownership. We acquired three buildings within the 28,000-square foot retail portion of the Sprout grocery-anchored Phase II at The Exchange at Gwinnett in the Atlanta submarket for $11.3 million.

Following these acquisitions, there is one small parcel remaining for us to acquire, which we anticipate will occur in the fourth quarter for approximately $2.3 million. Additionally in June, we purchased Plaza at Rockwall in the Dallas-Fort Worth MSA for $61.2 million. This property is a 446,000-square foot multi-tenanted retail power center located on 42 acres along I-30 just 20 miles northeast of downtown Dallas.