Business Context and Reporting Period
This Form 8-K Current Report was filed by Consolidated-Tomoka Land Co. (CTO Realty Growth, Inc.) on February 21, 2020. The filing reports the completion of a significant asset acquisition on the same date.
Key Financial Metrics and Transaction Details
- Acquisition Price: Approximately $75.4 million.
- Asset Acquired: Perimeter Place, a 269,000 square foot multi-tenant commercial retail property in Atlanta, Georgia.
- Occupancy: Approximately 80% occupied with 42 tenants.
- Anchor Tenants: Ross Dress for Less and Michaels.
- Lease Terms: Weighted average lease term of approximately 3.6 years.
- Management: Leased by JLL and managed by CBRE.
- Funding Sources: Remaining 1031 like-kind exchange proceeds from a November 2019 sale to Alpine Income Property Trust, Inc., and the Company's revolving credit facility.
Material Changes
The primary material change is the addition of the Perimeter Place property to the Company's portfolio. The transaction was structured as a reverse like-kind exchange to facilitate potential future dispositions of income properties. No material relationship exists between the Company and the seller, GLL Perimeter Place, L.P., other than this transaction.
Guidance, Outlook, and Risks
The filing does not provide updated financial guidance, outlook, or specific risk factors related to this transaction beyond standard disclosure. The Company noted that required financial statements of the business acquired and pro forma financial information will be filed by amendment no later than 71 days after the initial Form 8-K filing date.
Investor Verification Checklist
- Verify the impact of the $75.4 million acquisition on the Company's leverage ratios and liquidity once pro forma financials are filed.
- Confirm the status of the 1031 like-kind exchange proceeds utilized for funding.
- Review the upcoming amendment (within 71 days) for detailed financial statements of the acquired property.
- Monitor the utilization of the revolving credit facility used to fund a portion of the purchase.