Retail REIT CTO Realty Sells Non-Core Nevada Shopping Center To Reduce Debt

CTO Realty Growth Inc CTO disclosed the closing of the Eastern Commons shopping center sale in Henderson, Nevada, for $18.2 million.

The community shopping center spans 129,600 square feet, with a selling price representing an exit cap rate of 7.4% and generating a gain on sale of around $1.7 million.

The company expects to utilize the available proceeds to repay a portion of the balance under its revolving unsecured credit facility. 

With the closing of this transaction, the company has approximately $53.7 million of proceeds held in 1031 restricted cash accounts.

"This transaction, which was our sole property in the Las Vegas market, was another positive step in our efforts to sell our smaller non-core properties. Similar to our other recent dispositions, we are selling non-core properties to pay down debt while we wait for larger format opportunities at attractive values," said John P. Albright, President and CEO.

Last month, the company reported Q3 FY23 sales of $28.47 million, beating the consensus of $25.51 million and core FFO per share of $0.47 (flat Y/Y).

As of September 30, cash and equivalents stood at $29.6 million.

Price Action: CTO shares are trading higher by 0.70% at $16.58 on the last check Wednesday.