Good day, ladies and gentlemen, and thank you for standing by. Welcome to the CTO Realty Growth First Quarter 2022 Operating Results Conference Call. At this time, all participants are on 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, then one on your telephone keypad. If you require any further assistance, please press Star, then zero. At this time, I would like to turn the conference over to Mr. Matt Partridge. Good morning, everyone, and thank you for joining us today for the CTO Realty Growth First Quarter 2022 Operating Results Conference Call. With me today is our CEO and President, John Albright. Before we begin, I'd like to remind everyone that many of our comments today are considered forward-looking statements under federal securities law. 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 disclosed from time to time in greater detail in the company's Form 10-K, Form 10-Q, and SEC filings. You can find our SEC reports, earnings release, and supplemental disclosure package on our website at ctoreit.com. With that, I'll now turn the call over to John. Thanks, Matt, and good morning, everyone. We came into 2022 with a lot of opportunity and momentum from a very active 2021, and we've carried that momentum into the first quarter, both transactionally and operationally. We acquired one new retail property in Houston, Texas, originated a new retail development loan for a project adjacent to one of our recent acquisitions, continued to recycle out of properties in our remaining single-tenant portfolio, and we produced strong property NOI growth and leasing activity. On the acquisitions front, we acquired Price Plaza Shopping Center in Houston, Texas, for $39.1 million. The property sits along Katy Freeway, just up the road from Houston's Energy Corridor, and has a stable tenant base anchored by Ross, dd's DISCOUNTS, and Best Buy. Our dispositions in the quarter were once again centered on our single-tenant net lease assets as we sold our Party City in Long Island and our Carpenter ground lease in Austin, Texas, whereby the lessee of the Carpenter Hotel exercised their contractual repurchase right. Overall, the two dispositions were completed at a combined sales price of $24 million for a weighted average exit cap rate of 6%. To round out our transaction activities within the quarter, we originated an $8.7 million construction loan on phase two of The Exchange at Gwinnett just outside of Atlanta, near Simon's Mall of Georgia. We purchased phase one of the retail portion of the project this past December. As part of the phase two funding commitment, we secured a right of first refusal on the property that gives us the future flexibility in our acquisition pipeline. Following the end of the quarter, we originated a $30 million preferred equity investment in Watters Creek, a grocery-anchored retail property in Allen, Texas, that is just up the road from our Shops at Legacy in Plano. This investment was an opportunity to generate a strong yield on an asset we otherwise would like to own, and it provides capital to the acquiring sponsor to reposition the property to be the premier lifestyle experience in this fast-growing submarket of Dallas. Year to date, we've committed more than $77 million of capital to acquisitions and structured investment with a blended yield of 7.8%. Within our existing portfolio, we signed new leases in the quarter at an average rent of more than $31 per sq ft, with notable demand from food and beverage operators. New leases signed were primarily related to existing vacancy associated with units that were acquired as vacant. Of the backfill opportunities we had, we were able to grow rents by more than 8%, largely through an office user replacement at our Shops at Legacy property, where we've seen solid demand. That property is now 93% leased, up from its 83% occupancy at the time of acquisition just 10 months ago. Of our renewals and extensions during the quarter, we experienced approximately 1.5% growth in the new per square foot lease rates versus the prior rates. The leasing progress we've made over the past year has contributed to our robust same-property net operating income, which increased nearly 18% over the first quarter of 2021. Not surprisingly, this was driven by a 27% same-property NOI increase from our multi-tenanted properties, with Ashford Lane in Atlanta, Crossroads Towne Center in Phoenix, and The Strand in Jacksonville all delivering outsized growth. Our Ashford Lane project has been especially active, driven by our repositioning and creation of The Lawn, which is scheduled to be completed in June. Finally, we've made good progress with our repositioning of the Santa Fe property we acquired in December. Just in the past 2 weeks, we signed a lease with a prominent hospitality user who will create 4 high-end suites on the vacant fourth floor of one of the buildings to satisfy the significant demand they're experiencing from increased tourism and a continued influx of television and movie production in the area. This property is now 86% leased, which is 20 points higher than the 66% in-place occupancy we had at the time of acquisition. We'll have more details regarding this lease and our plan for the property over the coming months, but we're excited about this new partnership and the growth in leased occupancy we've experienced in our short period of ownership. With that, I'll now turn the call over to Matt to talk about our first quarter performance. Thanks, John. As of the end of the quarter, our income property portfolio consisted of 21 properties comprised of approximately 2.8 million sq ft of rentable space located in 9 states and 15 markets. At the end of the quarter, our portfolio was nearly 91% occupied, and we reported leased occupancy of 93.3%. The majority of our quarter-over-quarter increase is related to in-place occupancy was driven by our 245 Riverside multi-tenant office property in Jacksonville, Florida, our mixed-use property in Santa Fe, New Mexico, and at Beaver Creek Crossings, which is our retail property just outside of Raleigh. From a top tenant perspective, Fidelity remains our largest tenant exposure at just under 7%. I will highlight that Ross and dd's DISCOUNTS, Best Buy, and Darden Restaurants have all moved into our top ten tenant list. Our top markets continue to be Dallas, Atlanta, and Jacksonville, and as John mentioned earlier, we reentered Houston this quarter with our Price Plaza acquisition. As a result of our asset recycling over the past 12 months, more than 80% of our portfolio rents now come from mixed-use and retail properties, up from 68% this time last year. Single-tenant properties now represent just 16% of our overall rents, down from 50% at the end of the first quarter of 2021. Total revenues for the first quarter increased 17% year-over-year, with income property, interest income, and master lease investment revenues increasing nearly 31% year-over-year. As John previously referenced, we did report same-property NOI growth of 17.7% for the first quarter. Given the rebalancing of the portfolio over the past few years, we haven't historically reported this metric. However, now that we have an established and more stabilized asset base, we will be reporting this metric going forward. Our same-property NOI year-over-year growth only includes assets owned for the entirety of both Q1 2022 and Q1 2021, so it excludes all assets made in 2021 and year to date in 2022. For the first quarter of 2022, Core FFO grew 70% to $1.39 per share, and AFFO grew 53% to $1.48 per share. Core FFO was positively impacted by the elimination of approximately $175,000 of quarterly amortization related to the discount on convertible debt we previously held on our balance sheet. As part of our implementation of certain accounting standards within the quarter, which are outlined in more detail in our Form 10-Q, this discount was eliminated. The elimination of this amortization was a positive pickup in our Core FFO versus our previously provided guidance, but the amortization was adjusted for in our calculation of AFFO and therefore had no impact on our AFFO performance relative to guidance. As previously announced, the company paid a first quarter regular cash dividend of $1.08 per share, which is an 8% increase over the company's Q4 2021 cash dividend and a current annualized yield of approximately 6.8%. Our quarterly dividend represents a cash payout ratio of 73% of Q1 2022 AFFO per share, and we continue to work towards efficiently paying out approximately 100% of taxable income in 2022. As we turn to our balance sheet, we ended the quarter with total cash and restricted cash of $36 million and more than $140 million of undrawn commitments under our revolving credit facility. Total long-term debt outstanding was $300 million at quarter end, which includes $17.8 million mortgage we assumed with our acquisition of Price Plaza Shopping Center during the quarter. Net debt to total enterprise value at quarter end was approximately 36%, and our net debt to EBITDA was 6x. On the capital markets front, we issued just under 44,000 shares of common stock through our ATM program during the first quarter for total net proceeds of $2.8 million at an average issuance price of $65.47 per share. Subsequent to quarter end, we announced a 3-for-1 common stock split to be effective July 1 for stockholders of record as of June 27. The stock split is both in response to our strong historical performance and our confidence in our future growth, as well as our intention to improve the tradability and accessibility of our stock for retail and institutional stockholders. In terms of our go-forward growth, we did increase our full year guidance to take into account our strong first quarter results, revised expectations for transaction yields, the elimination of the previously referenced non-cash amortization related to our convertible notes, and the current capital markets environment. We increased the midpoint of our core FFO per share range by $0.25 per share and the midpoint of our AFFO range by $0.05 per share. These per share increases do not take into account the effects of our announced stock split. We will provide revised per share earnings guidance that takes the stock split into account in July once it has been completed. While we did not increase the acquisition or disposition volume guidance, we did increase our acquisition cap rate guidance by 25 basis points at the midpoint, and we reduced our disposition cap rates by 125 basis points at the low end and 100 basis points at the high end to reflect the actual execution of our first quarter dispositions and revised asset sale expectations. Our updated guidance does update for higher interest rate expectations for the balance of the year and could be heavily influenced by the timing of our investments, dispositions, and capital markets transactions, a continued volatile interest rate environment, and future performance of our current and prospective tenants. With that, I'll turn the call back over to John for his closing remarks. Thanks, Matt. While we are being disciplined in what seems to be an increasingly unpredictable market, I'm optimistic we'll continue to find opportunities for further growth. We've made a lot of progress operationally, and our 2022 guidance is reflecting that progress in the form of strong earnings growth. As we look towards the back half of the year at our lineup of tenant rent commencements, particularly at Ashford Lane, we're also optimistic about what our external and internal growth opportunities can provide for 2023. I look forward to providing additional updates on our portfolio and investment activity throughout the quarter, and I wanna thank all of our investors and partners for their continued support. With that, we'll open it up for questions. Operator? Ladies and gentlemen, if you have a question or comment at this time, please press star then one on your telephone keypad. If your question has been answered or you wish to remove yourself from the queue, simply press the pound key. Again, if you have a question or comment at this time, please press star then one on your telephone keypad. Our first question or comment comes from the line of Rob Stevenson from Janney. Your line is open. Hi. Good morning, guys. John, can you talk about the cap rate on the Price Plaza acquisition and, you know, a little bit about the current pipeline size, given the fact that, you know, you did that, and it's only about, you know, call it, a portion of the overall for the year, as to how big the pipeline is today, or you expect it to be mostly backend weighted there? Yeah. The Price Plaza was kind of in the mid sevens. Our pipeline is weighted kinda to the end of the year, as we see a little bit of pricing getting a little better on the multi-tenant side. We're kind of taking our time. We've done enough and kind of, you know, picking our shots now. Okay. That's what drove the cap rate change in the acquisition and disposition assumptions, the spread there between the multi-tenant and the single-tenant stuff? Yeah. Hey, Rob, it's Matt. Part of what drove the acquisition cap rate assumption was the Watters Creek deal that we announced in April, which was the preferred equity investment, which is yielding in the mid eights. That helped drive the increase there, and then on the disposition side, it was the low cap rate on the two sales in Q1. Okay. How are you guys thinking about using your capital today for acquisition of properties versus, you know, loans, et cetera? Is there a cap that you're gonna sort of hold yourself to on the sort of mezz and loan side, or is it just all based off of where you could deploy capital most accretively today? Yeah. We're not gonna do a lot in the structured investments. We're only gonna do it where, you know, these are assets that, you know, we would like to own. You're basically investing at a better basis and higher yields in some respects. If something happens, there may be opportunity down the road. You know, these are deals that really have come to us versus us searching out this kind of a program. It allows us to kinda get exposure to really, you know, good real estate at better basis and have a better feel for what's going on in different markets as well, get a lot of visibility from these investments. You know, we You know, obviously, the goal is to invest in ownership, and we think there'll be some of those opportunities, you know, later in the year. Okay. Matt, how much was the occupancy gains worth to you guys, FFO per share-wise in the first quarter? 'Cause just trying to figure out where the big delta was versus the guidance. If I think about the high end of the prior guidance range at $0.455, that's roughly a $1.14 run rate, and you guys did $1.31, $1.39. You guys didn't have any big mineral rights sales. I assume that you benefited from the fact that you didn't issue many shares in the quarter, and so you didn't take dilution from that. That's still a sort of big gap to sort of bridge, I assume, occupancy and the lack of share issuance was there. What was there other big pieces there that we should be aware of? Yeah. We did have some nice pickups on some real estate tax appeals. You know, obviously, the interest rate environment is influencing the balance of the year from a guidance perspective. We are being somewhat conservative on that front and the impact that has on the back half of the year's impact to overall full year guidance. Okay. 'Cause, I mean, I guess the other reason why I ask is the high end of your new range is $4.80 or, you know, $1.20 per quarter, and you already booked $1.39 in the first quarter, and so didn't know how you got down to averaging essentially $1.14 per share in the remaining three quarters or anything close to that. I mean, obviously, interest rates will probably be some sort of a drag, but wouldn't think it's, you know, a $0.10 or $0.20 per share drag on that, especially given the lack of dispositions. Yeah. I was gonna say part of it is the timing of dispositions versus the redeployment. As John mentioned, you know, the acquisition volume's expected to be back half of the year weighted, whereas I think you can expect the dispositions to be more near term. There is a bit of a drag from that perspective. You know, we continue to move tenants out, to be able to rerate up on the rent per square foot side of things with from a leasing perspective. There may be a little bit of drag related to that in the back half of the year as well. Okay. Thanks, guys. Appreciate the time. Sure. Thank you. Our next question or comment comes from the line of Jason Stewart from JonesTrading. Your line is open. Hey, guys. It's Matthew Erdner on behalf of Jason. Thanks for taking the call. So could you guys provide an update on the mitigation bank and the way that you guys are thinking about that right now, and if the plan is to still kinda spin that out and get rid of that at some point? Yeah. You know, that is definitely the goal. We're expecting some credit sales to happen in this quarter, you know, depending on development, you know, basically approvals on some of the buyers of those credits. If we're able to sell, you know, you know, kind of a block of credits, and then that would get us better pricing to sell the whole block after we did that, because people aren't gonna give you full value for credit sales. I would say it's more back half of the year sort of execution. We are, you know, that is a goal for sure. We'd love to monetize that, use that capital to reinvest in the core business and just, you know, obviously have, you know, creative earnings based on, you know, selling that asset and reinvesting. Awesome. Thanks. I noticed that this year and next year, there's a combined 10% of the annualized base rent that's expired. Did you expect to put new tenants in that, or is it gonna be re-leasing the same tenants that you currently have in there? It's gonna be a balance. You know, I think we've got some good visibility into this year, and I think we feel pretty good about the ability to either extend or have tenants exercise their options on a decent amount of what's expiring. We are, as I just mentioned, gonna have some rollover where we think we can move those rents up with new tenants and backfill. It's gonna be a balance. Then next year, same sort of thing. It's gonna be a blend. Awesome. Sounds good. Thanks, guys. Thank you. Thanks, Matt. Thank you. Our next question or comment comes from the line of Craig Kucera from B. Riley Securities. Your line is open. Yeah. Hey, good morning, guys. Obviously you had a pretty solid leasing quarter, but I'm curious as to what traffic has been here in the second quarter, whether you've seen any slowdown or shift in demand or traffic quarter to date. Yeah, I mean, great question, and I, you know, personally anticipate a slowdown, but we haven't seen it yet. The leasing activity is still robust. Got it. Changing gears, you had originated the Watters Creek preferred investment. Can you give us a sense of what the origination fee was on that? It was 50 basis points. You know, it's not, you know, super material. Got it. Just kind of circling back to the mitigation credits, you know, I'm not terribly familiar with that, but is that business as sensitive to changes in interest rates as perhaps a real estate investor, or is that less sensitive just given the nature of the business? Yeah, it's less sensitive to interest rates. It's super sensitive to development activity. As much as you would see if you saw development activity kind of drop off, it's super sensitive to that. But it's less sensitive to interest rates. Got it. Just one more from me. You mentioned a lot of demand from food and beverage. I'm curious, just given the higher inflation costs they're facing and trying to pass on, are you seeing any impacts to leasing negotiations or pushback on rents or are things still holding up pretty well? No, they're holding up pretty well. I just think the business so far for the F&B folks have been so strong that they wanna capture good sites, you know, more for long term of their business plan. It hasn't disrupted their business plans yet. You know, if you think about it, when we're negotiating now, for a lease, you know, some of these things are gonna take a year to build out and open. It's really more long-term perspective from the tenant. Got it. Just one more from me. Just thinking about structured investments, I understand that you're not looking to do as many, maybe the rest of the year after having kind of a robust, you know, first four months, but are you floating out the idea or is there any potential to do maybe a more of a CPI-based type of investment? Or is that really just not what's seen in the marketplace? Yeah, we can do more of a SOFR- based, you know, basically kind of a spread off that, more of a floating rate investment, if you will. You know, so that really effectively kind of protects us and makes it kind of interesting. You know, again, some of these are such short duration that, you know, really for simplicity, we kind of price it into the overall kind of fixed rate, because the investors are basically expecting to do their business plan and refi out our investment fairly short order. If it was something more of a five-year duration, we'd certainly have more kind of bells and whistles to capture, you know, either CPI or interest rate risk. Got it. All right. Thanks, guys. Sure. Thank you. Again, ladies and gentlemen, if you have a question or comment at this time, please press star then one on your telephone keypad. Our next question or comment comes from the line of Michael Gorman from BTIG. Your line is open. Yeah. Thanks. Good morning. John, I wonder if you could just talk a little bit about underwriting in the acquisition market. I know you talked about maybe back-end loading the acquisition deal flow. Obviously, there's been strong operating fundamentals in your own portfolio. When you're approaching these new investments, how are you thinking about the trajectory of leasing, your willingness to take on lease-up risk at this point in the economic cycle, and just kind of how you're approaching that for new investments? Yeah. We're not seeing as much lease-up risk deals. We actually, you know, prefer those because it really knocks out your buyers who are using financing. Obviously those sort of buyers, you know, bringing down the cap rates. We do like the lease up opportunity risk, however you wanna phrase it, just 'cause it gets you a better risk reward. We're not seeing a lot of that. Most of the acquisition activity is more stabilized assets. You know, I would say that, you know, on the acquisition side, if we did something here in a fairly short order or what have you, it would be more of a stabilized asset just 'cause that's what we're seeing. We're not afraid of the lease-up risk, given that what we're seeing in all of our properties is still robust, you know, tenant demand. Okay, great. Maybe, you know, I don't know if this is splitting hairs, but as you think about the acquisition opportunities that are out there, you know, thinking about the back half waiting, is that more about that you think the pricing in the market is gonna change because of the interest rate volatility that we've seen? Or is it that, the current underwriting in the market and current pricing in the market, you just you don't see eye to eye on that and you're getting priced out of deals? Is it more opportunistic waiting, or is the market just too hot right now? Yeah, good point. Definitely the last couple months we have been priced out. Now we're seeing cracks start with regards to buyers retrading deals that we looked at. We're getting calls from brokers encouraging us to bid on an asset when we didn't bid the first round. You're starting to see it. It's really back half waiting is really driven by we expect pricing to get better for us, and we don't want to, you know, you know, push too much forward in buying assets with that possibility. Now, I will say that this environment may allow us to buy some high quality assets that you would never get a shot at buying in the, you know, market like four months ago. You may not pick up, you know, incredible pricing, but you'll pick up incredible quality. Great. That's helpful. Thanks very much. Sure. Thank you. I'm showing no additional questions in the queue at this time. I'd like to turn the conference back over to Mr. John for any closing comments. Thank you very much for attending the call, and we look forward to talking with you, post the call. Thank you. Ladies and gentlemen, thank you for participating in today's conference. This concludes the program. You may now disconnect. Everyone, have a wonderful day.