CTO Realty Growth, Inc.

Good day, and thank you for standing by. Welcome to the CTO Realty Growth 2026 Quarter 3 Earnings 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, you will need to press star 11 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Jenna McKinney, Director of Finance. Jenna, please go ahead.

Good morning, everyone, and thank you for joining us today for the CTO Realty Growth Third 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 who 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 materially 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 cporeit.com. With that, I will turn the call over to John.

Thanks, Jenna, and good morning, everyone. The third quarter was very productive for CTO as we continued our strong leasing and investment momentum. During the quarter, we signed 467,000 square feet of leases and completed $102.3 million of investments at a weighted average yield of 9.1%. That brings our nine-month totals to 833,000 square feet of leasing and $336.5 million of investments at a weighted average yield of 9.4%. This activity drove core FFO per diluted share growth of 10.4% for the quarter and 13.8% for the nine months. We have now addressed all 11 of our vacated anchor spaces. And just after the quarter end, we signed approximately 75,000 square feet of new leases at Pompano City Center and completed an additional 135.8 million of investments, bringing year-to-date investments to 472 million at a weighted average yield of 9.4%. Reflecting all of this activity, we're raising our 2026 core FFO guidance, which Phil will walk through shortly. Starting with leasing, our third quarter activity included 396,000 square feet of comparable leases at a 7% cash rent spread. Year-to-date comparable leasing totals, 726,000 square feet at a 9% cash rent spread. Regarding the vacated anchor spaces, we addressed the last remaining box this quarter by subdividing the former con space at Carolina Pavilion in Charlotte and signing leases with Cavenders and 2nd and Charles. We're pleased with how this all played out. Of the 11 spaces, nine have been released at approximately 70% positive spread. The remaining two, as previously announced, are under contract to be sold to a national retailer for $20.7 million with closing expected in the fourth quarter. We expect these new anchors to bring more traffic to our centers and benefit the adjacent small shop space. A few other leasing highlights. First, we signed a 55,000 square foot lease with Crunch Fitness at Crossroads Town Center in Phoenix to replace Harkins Theaters. Although the Harkins lease runs through late 2028, we had negotiated an early termination right. that let us proactively backfill the space at a positive cash spread with a use that will drive more foot traffic. We expect roughly 12 months of downtime between Harkins vacating in early 2027 and the crunch lease commencing in 2028. Second, just after the quarter end, Amp Fitness signed a lease to expand by 19,000 square feet at Pompano City Center, bringing this immersive, experience-driven fitness destination to 53,000 square feet. and Amt Affiliate also leased 56,000 square feet for research, development and testing of gym equipment and experiential rooms as well as office operations. This space is part of the 62,000 square feet of unfinished second floor shell space we identified as upsize when we acquired the property last December. Because the space isn't currently in the center square footage, the lease will increase Pompano City Center to 565,000 square feet. Third, our out parcel program. This quarter, we signed four leases at multi-tenant buildings and two out parcel developments, T-Mobile at the Plaza at Rockwall and Jason's Deli, Acapella Nail Spa and Nothing But Cakes at Beaver Creek in Raleigh. Together with the Swig and Cooper's Hawk leases signed earlier this year, we're making steady progress. We continue to expect a blended Low double-digit unlevered yield on about $30 million of investments across these six out-parcels, with earnings contribution beginning in 2027 and a full benefit in 2028. Turning to occupancy, excluding Zona Rosa, leased occupancy increased to 95.7% from 95.4% last quarter. Including Zona Rosa, which was 67% leased when we acquired it, the total portfolio was 92.4% leased at September 30th. Zona Russo gives us real room to grow, which I'll come back to in a moment. At quarter end, our signed not open pipeline was 5.6 million, or about 4.6% of in-place cash rent. That's down modestly from last quarter, mainly because the state of New Mexico began paying rent at our Albuquerque property in September. Though new leasing during the quarter offset most of this impact. We expect the majority of the signed, not open pipeline to commence rent over the course of 2027. Moving to investments, on our last call, we said we expected to close at least one more acquisition this year. We closed two, both in Kansas City, a new market for CTO with more than 2.2 million people in a pro-business climate. Together, these two centers, both in strong local submarkets, add about 1.3 million square feet to our portfolio. First, Zona Rosa, which we acquired in the third quarter for approximately $63 million, or $82 per square foot, well below replacement costs. It's a top lifestyle center in Kansas City's Northland submarket with about 5.5 million annual visits and is anchored by Dick's Sporting Goods, Barnes & Noble, Old Navy, Burlington, and DSW. Beyond the lease-up opportunity, the property includes 10 acres of entitled development land and about 100,000 square feet of underutilized space we can reposition. Second, Summit Woods Crossing, which we acquired in early October for $103 million, or $189 per square foot, also well below replacement costs. It's a 545,000-square-foot power center in Lee's Summit, one of the metro's most affluent submarkets. It's 99% occupied and anchored by Lowe's, Kohl's, Best Buy, TJ Maxx, and Total Wine with a super target on the site that we don't own. With about 7.3 million annual visits, it's among the most visited shopping centers in the Kansas City metro area. These two acquisitions also strengthen our tenant credit with Dick's and Best Buy, both investment grade, becoming our two largest tenants. On the structured investment side, in July, we originated a $37 million loan, of which $29.8 million was funded at closing. It's secured by a leasehold interest in a mixed-use property in Austin, Texas, has a two-year term, and carries a 9.75% initial cash yield. Then, after quarter-end, we closed a $32 million preferred equity investment in a joint venture that owns 10 shopping centers. is fully funded at closing, has a three-year term, and yields 17%, including 7% pay in kind. Our structured investment portfolio now totals approximately $260 million at a blended rate of 12.1%. Finally, during the quarter, we closed a new expanded credit facility that gives us ample capacity to fund this activity. Phil will cover the details. In summary, we're very pleased with the nine months of 2026. We believe our embedded growth drivers, including below-market in-place rents, the sign-not-open pipeline, lease-up opportunities, out-parcel developments, and disciplined capital recycling, position CTO for meaningful earnings growth. With that, I'll turn the call over to Phil.