8-K: CTO Realty Growth Appoints Philip R. Mays as New Chief Financial Officer

CTO Realty Growth has appointed Philip R. Mays as Senior Vice President, Chief Financial Officer, and Treasurer, effective June 17, 2024.

Summary

• CTO Realty Growth has appointed Philip R. Mays as its new Senior Vice President, Chief Financial Officer, and Treasurer, effective June 17, 2024.
• Mr. Mays will also serve in the same capacity for Alpine Income Property Trust, which is externally managed by CTO.
• His previous experience includes serving as CFO at Shadowbox Studios and Cedar Realty Trust, and as Chief Accounting Officer at Federal Realty Investment Trust.
• Mr. Mays's employment agreement includes an initial annual base salary of $375,000, with eligibility for annual and long-term incentive compensation.
• Lisa M. Vorakoun will resume her role as Senior Vice President and Chief Accounting Officer upon Mr. Mays's appointment.

Sentiment

Score: 8

Explanation: The document conveys a positive sentiment due to the appointment of an experienced CFO and the clear terms of his employment agreement. The company's management expresses confidence in the new hire's ability to contribute to growth.

Positives

• The appointment of Philip R. Mays brings significant experience in the REIT sector, including previous CFO roles at public companies.
• Mr. Mays's relationships within the retail shopping center REIT sector are expected to be a valuable addition to the company.
• The employment agreement includes a competitive base salary and incentive compensation structure.
• The company is providing a relocation allowance to support Mr. Mays's move to the area.

Risks

• The document mentions general risks associated with the company's operations, including economic conditions, interest rate volatility, and the impact of pandemics.
• There is a risk associated with the company's investment in structured investments and the potential loss or failure of PINE.
• The company's ability to remain qualified as a REIT is also a risk factor.

Future Outlook

The company anticipates that Mr. Mays's experience and relationships will contribute to the growth of both CTO and Alpine.

Management Comments

• John P. Albright, President and CEO, stated, 'We are excited to welcome Phil to the CTO and Alpine team as our Senior Vice President and Chief Financial Officer.'
• Mr. Albright also noted that 'Phil's public REIT CFO and finance experience are a welcome addition, and we look forward to his contributions to the growth of both companies.'
• Mr. Albright added that 'Phil's relationships within the retail shopping center REIT sector, including the banking, investor and research communities, will be a valuable addition to the Company and will complement the strengths of our existing executive team.'

Industry Context

This announcement is consistent with the trend of REITs hiring experienced financial executives to manage their operations and growth. Mr. Mays's background in retail REITs aligns with CTO's focus on retail-based properties.

Comparison to Industry Standards

• The compensation package for Mr. Mays, including base salary and incentive opportunities, appears to be in line with industry standards for CFOs at publicly traded REITs.
• His previous experience at Cedar Realty Trust and Federal Realty Investment Trust, both NYSE-listed retail REITs, provides a strong benchmark for his capabilities.
• The relocation allowance is a common practice for executive hires in the industry.
• The employment agreement's terms, including severance and change-in-control provisions, are typical for senior executive roles in the REIT sector.

Management Changes

Stakeholder Impact

• Shareholders may view the appointment of an experienced CFO positively, potentially increasing investor confidence.
• Employees may be impacted by the change in leadership within the finance department.
• The appointment could positively impact the company's relationships with banks, investors, and research communities.

Next Steps

• Philip R. Mays will assume his role as Senior Vice President, Chief Financial Officer, and Treasurer on June 17, 2024.
• Lisa M. Vorakoun will resume her role as Senior Vice President and Chief Accounting Officer on the same date.
• The company will likely integrate Mr. Mays into the executive team and begin implementing his strategies.

Key Dates

Keywords

Chief Financial Officer, CFO, Philip R. Mays, CTO Realty Growth, Alpine Income Property Trust, REIT, Executive Appointment, Compensation, Real Estate Investment Trust