CTO Realty Growth Expands Common and Preferred Stock ATM Programs, Adding New Sales Agents for Up to $275M in Potential Capital Raises

summarizeSummary

CTO Realty Growth expanded its at-the-market (ATM) common and preferred stock offering programs by adding new sales agents, enabling the company to potentially issue up to $250 million in common stock and $25 million in preferred stock.

check_boxKey Events

• Expanded Common Stock ATM Program

  CTO Realty Growth added Cantor Fitzgerald & Co. and Huntington Securities, Inc. as new sales agents, forward sellers, and forward purchasers to its existing common stock at-the-market offering program. This program allows the company to sell up to $250,000,000 of common stock from time to time.

• Expanded Preferred Stock ATM Program

  The company added Cantor Fitzgerald & Co. and Huntington Securities, Inc. as new sales agents to its existing preferred stock at-the-market offering program. This program allows the company to sell up to $25,000,000 of 6.375% Series A Cumulative Redeemable Preferred Stock from time to time.

• Updates to Existing Agreements

  Amendments were made to existing equity distribution agreements, originally dated November 12, 2024, with other agents to reflect the participation of the newly added sales agents and forward parties in both the common and preferred stock offerings.

auto_awesomeAnalysis

This 8-K filing indicates CTO Realty Growth is enhancing its financial flexibility by expanding its at-the-market (ATM) offering programs for both common and preferred stock. The addition of Cantor Fitzgerald & Co. and Huntington Securities, Inc. as new sales agents and, for common stock, as forward sellers and purchasers, broadens the company's distribution network for these programs. The common stock ATM program, with a potential aggregate offering price of up to $250 million, represents a substantial potential capital raise relative to the company's market capitalization. While ATM programs provide a flexible way to raise capital, they also introduce potential dilution for existing shareholders. The preferred stock ATM program, for up to $25 million, adds further capital-raising capacity. This move, occurring while the stock is trading near its 52-week high, suggests the company is strategically positioning itself to access capital on favorable terms, but the significant potential dilution from the common stock program could weigh on investor sentiment.