CTO Realty Growth, Inc.

Hello and welcome to the CTO Reality Growth Q2 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Jenna McKinney, Director of Finance. Please go ahead.

Good morning everyone and thank you for joining us today for the CTO Realty Growth second quarter 2026 operating results conference call. Participating on the call this morning are John Albright, President and Chief Executive Officer, Philip Mays, Chief Financial Officer, and other members of the executive team that will be available to answer questions during the call. I would like to remind everyone that many of our comments today are considered forward-looking statements under federal securities laws. 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 discussed 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 ctoreet.com. With that, I will turn the call over to John.

Thanks, Jenna, and good morning, everyone. Our strategy of owning and operating high-quality shopping centers in high-growth markets, complemented by our structured investments, continues to produce results across all areas of our business. For the quarter, we again delivered strong results driven by robust same-property NOI growth, healthy leasing, and $153 million of investments at a weighted average initial yield of 10.2%. Starting with leasing, during the quarter, we executed 25 new leases, renewals, and extensions, totaling 213,000 square feet, including 184,000 square feet of comparable leases at a positive cash rent spread of 6%. Year to date, we have now completed 366,000 square feet of leasing, including 330,000 square feet of comparable leases at a cash rent spread of 10%. Leases signed during the quarter include Cooper's Hawk and Out Parcel Development at Ashley Park and Party Barn Kids at Millennia Crossing, which is in front of the Mall of Millennia in Orlando. Reflecting this leasing momentum, At quarter end, our total portfolio was 95.4% leased, up 150 basis points from a year ago. The current spread between leased and occupied rates is 400 basis points, and our signed not open pipeline is 6.3 million, representing approximately 5.8% of in-place annual cash-based rent. We believe this provides a meaningful and visible earnings tailwind as these tenants are expected to take possession and commence paying rent through the balance of 2026 and into 2027. One final leasing note. The Cheesecake Factory recently opened its nearly 7,000 square feet of restaurant space at the collection at Foresight in Georgia on July 21st. The opening was highly successful and the shopping center continues to strengthen its position as a vibrant focal point in Atlanta's most affluent suburbs. In addition, demand for the center's 10-acre out parcel remains strong, and we are in active lease negotiations with an anchor tenant to take possession. Also reflecting the strength of our operating performance, same property NOI for our shopping centers increased 10.1% for the quarter compared to the prior year period. This growth continues to be driven by leasing activity across our portfolio, including the anchor backfields that have commenced paying rent. Phil will provide additional details on same property NOI shortly. Moving to investment activity, during the quarter we acquired Gallery on the Parkway, 152,000 square foot open air retail power center in Dallas, Texas for $53.3 million. The center is fully occupied and anchored by Dick's House of Sports, Nordstrom Rack, Cost Plus World Market, and Portillo's. Situated on 12 acres along the Dallas North Tollway, With over 121,000 vehicles passing daily, this property serves a dense trade area with a population of approximately 368,000 residents within a five-mile radius. It is also just two miles from the proposed site of the Dallas Mavericks New Arena and Entertainment District. On a year-to-date basis, we have now completed $234.2 million of investments at a weighted average yield of 9.5%. On the recycling front, during the quarter, we completed $90.7 million of property dispositions at a weighted average exit cap rate of 6.7%. These sales included Madison Yards, a 163,000 square foot shopping center in Atlanta, Georgia, and Granada Plaza, a 74,000 square foot shopping center in Tampa, Florida. These dispositions allow us to continue recycling capital out of low cap rates, stabilized assets, and into higher yielding investment opportunities. Further, the state of New Mexico is expected to take possession of approximately 98,000 square feet at our Albuquerque, New Mexico office property this fall, bringing the property back to full occupancy. Accordingly, we are now preparing to take this property to market. This will represent our last non-core asset to sell. In addition, we are under contract to sell subject to customary closing conditions, a 76,500 square foot portion of Carolina Pavilion in Charlotte, North Carolina to a national retailer. This square footage consists of two adjacent vacant anchor boxes formerly leased to Value City Furniture and Joanne Fabrics. Assuming this sale closes, we will have resolved all but one of the vacant anchor boxes we have been discussing on prior calls. Based on the eight completed anchored leases and current lease negotiations for the one remaining vacant box, we anticipate a positive lease spread of approximately 75% for these nine anchor spaces combined. Notably, beyond the favorable earnings impact driven by these new anchors, we believe that they will also drive more foot traffic and create vibrancy to our shopping centers. Turning to our structured investment platform, which continues to be an attractive complement to our investment strategy. During the quarter, we originated two preferred equity investments totaling $96.4 million. The first was a previously announced $75 million preferred equity investment in the Class A Premier Retail property located in the Southwest, which generates a 12% initial cash yield and has a two-year term. The second was a $21.4 million preferred equity investment in a grocery-anchored development located in the Northeast, which generates a 12% initial yield, including 3% accrued paid-in-kind interest, and has an 18-month term. After the quarter end, we originated a $37 million first mortgage investment secured by a leasehold interest in a mixed-use property located in Austin, Texas, of which $29.8 million was funded at closing. This investment generates a nine and three quarters initial cash yield and has a two-year term. Including this investment, our pro forma structured investment portfolio stands at approximately $222 million or approximately 15% of undepreciated assets, which is our target. The pro forma structured investment portfolio generates a weighted average yield of approximately 11.5%. Just a brief update on our six identified and out parcel opportunities. As previously discussed, last quarter we signed a lease with Swig for a drive-through customized beverage store at Marketplace at Seminole Town Center located in the Orlando Market. In this quarter, we signed a lease with Cooper's Hawk at Ashley Park located in Atlanta Market. We remain active in lease negotiations for the remaining four out parcels, which are located at Beaver Creek, West Broad Village, Plaza at Rockwall, and Collection at Foresight. We continue to expect these six out parcels combined to generate a low double-digit unlevered yield on approximately $30 million of investment with capital being deployed over the late 2026 and into 2027 and beginning to contribute to earnings in 2027 with the full benefit expected to be recognized in 2028. We look forward to providing updates related to this Initiative as additional leasing is completed. Looking forward, we have built a robust pipeline of acquisition opportunities and are actively underwriting shopping centers that align with our growth strategy. We expect to close at least one additional acquisition before year end, further strengthening our portfolio. Together with our year-to-date activity, this leads us to raise our investment volume guidance by over $100 million to a new range of $300 million to $400 million. In summary, we are very pleased with our performance through the first half of 2026, and we remain excited about the embedded growth drivers across our portfolio, including our below-market in-place rents, our signed but not open pipeline, our out-parcel development opportunities, and our disciplined capital recycling. We believe these initiatives position the company to deliver meaningful earnings growth for years to come. And with that, I'll hand the call over to Phil.