CTO Realty Growth, Inc. (NYSE:CTO) Q1 2023 Earnings Conference Call April 28, 2023 9:00 AM ET

Company Participants

Matt Partridge - Senior Vice President, Chief Financial Officer, and Treasurer

John Albright - President and Chief Executive Officer

Conference Call Participants

Gaurav Mehta - EF Hutton

Rob Stevenson - Janney Montgomery Scott

Craig Kucera - B. Riley Securities

Floris van Dijkum - Compass Point

Operator

Good day, and thank you for standing by. Welcome to the CTO Q1 2023 Earnings 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 your speaker today. Matt Partridge, please go ahead.

Matt Partridge

Good morning, everyone, and thank you for joining us today for the CTO Realty Growth first quarter 2023 operating results conference call. With 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 the 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 report, earnings release, supplemental and most recent investor presentation on our website at ctoreit.com.

With that, I'll now turn the call over to John.

John Albright

Thanks, Matt. Good morning, everyone, and thank you for joining us.

Today, we'll provide a brief overview of our first quarter results, discuss the largely completed repositioning of our largest assets, Ashford Lane, and highlight the continued strength we're seeing on the leasing front.

Our operating business continues to demonstrate fundamental strength, driven by resilient consumer, no new supply and strong tenant demand. At CTO, we experienced high retention rates with our first quarter renewals, options and extensions generating comparable rent growth of 8.4%. The high tenant retention is a testament to the quality of our properties and demographic trends in our markets.

These dynamics have us optimistic that we can continue to build on our very strong sign, but not yet open pipeline that will drive organic earnings in the years to come. This pipeline represents more than $4 million of net revenue that will come online in the next 18 months or upwards of $0.15 per share of annualized FFO and more than 300 basis points of future occupancy.