CTO 리얼티 그로스 2026년 3분기 실적 발표: 투자액 4억 7,200만 달러 달성 속 FFO 가이던스 상향

핵심 요약

• CTO 리얼티 그로스는 2026년 3분기 희석주당 Core FFO가 전년 동기의 0.48달러에서 10.4% 증가한 0.53달러를 기록했다고 발표했습니다. 연초 대비 누적 희석주당 Core FFO는 13.8% 증가한 1.57달러를 기록했습니다.
• 쇼핑센터 동일자산 NOI는 이번 분기 3.8%, 연초 대비 누적 6.2% 성장했습니다. 일부 비핵심 자산을 포함한 전체 동일자산 NOI는 분기 동안 2.3% 증가했습니다.
• 회사는 이번 분기 동안 467,000제곱피트 규모의 임대 계약을 체결했습니다. 비교 가능 임대 면적은 396,000제곱피트이며, 현금 임대료 스프레드는 7%를 기록했습니다.
• 첫 9개월 동안의 투자 총액은 가중평균 수익률 9.4%에 3억 3,650만 달러를 기록했습니다. 분기 종료 후 추가 거래를 반영한 2026년 투자 규모는 동일한 가중평균 수익률에 4억 7,200만 달러에 달했습니다.
• 경영진은 2026년 희석주당 Core FFO 가이던스를 2.11~2.14달러로, 희석주당 AFFO 가이던스를 2.22~2.25달러로 상향 조정했습니다.
• CTO는 프로포마 조정 EBITDA 대비 순부채 비율 5.9배, 약 2억 5,500만 달러의 유동성으로 분기를 마감했습니다. 경영진은 최근 투자 영향으로 레버리지가 약 6.5배까지 상승한 후, 내재 수익이 기여하기 시작하면서 6배대 초반 범위로 하락할 것으로 예상하고 있습니다.

주요 재무 데이터

사업 및 영업 실적

CTO는 공실이 되었던 11개 앵커 공간 문제를 모두 해결했습니다. 9개 공간은 약 70%의 플러스 스프레드로 재임대되었으며, 2개 공간은 전국 단위 유통업체에 2,070만 달러에 매각하는 계약을 체결하여 4분기 중 매각 절차가 완료될 예정입니다.

조나 로사를 제외한 임대 점유율은 전 분기 95.4%에서 95.7%로 상승했습니다. 인수 당시 임대율이 67%였던 조나 로사를 포함할 경우, 9월 30일 기준 전체 포트폴리오 임대 점유율은 92.4%였습니다.

560만 달러 규모의 계약 완료 미개장 파이프라인은 향후 임대료 성장을 뒷받침할 것으로 예상됩니다. 경영진은 약 320만 달러의 임대료가 2027년 중반경에 시작되고 2028년까지 파이프라인의 대부분이 가동될 것이라고 밝혔습니다. 이 수치는 분기 종료 후 폼파노 시티 센터에서 체결된 임대 계약을 제외한 것입니다.

폼파노 시티 센터에서 앰프드 피트니스는 19,000제곱피트 확장하여 총 53,000제곱피트를 사용하기로 합의했습니다. 또한 계열사가 연구, 시험 및 사무 용도로 56,000제곱피트를 임차했습니다. 이번 추가 공간으로 인해 해당 자산의 보고 면적은 565,000제곱피트로 늘어납니다.

CTO는 약 3,000만 달러 규모의 투자금을 바탕으로 6개 부속 부지(outparcel) 개발 프로그램에서 레버리지를 차감하지 않은 기준 10%대 초반의 복합 수익률을 거둘 것으로 기대하고 있습니다. 경영진은 2027년부터 이익 기여가 시작되어 2028년에 전체 효과가 나타날 것으로 보고 있습니다.

캔자스시티 자산 인수

CTO는 총 약 130만 제곱피트 규모의 2개 자산 인수를 통해 캔자스시티 시장에 진출했습니다.

• 조나 로사: 약 6,300만 달러(제곱피트당 82달러)에 인수했습니다. 해당 자산은 임대율 67% 상태였으며, 인허가를 받은 10에이커의 개발용 부지와 총 약 250,000제곱피트의 공실 중 미활용 공간 약 100,000제곱피트를 포함하고 있습니다. 경영진은 방문객과 점유율을 높이기 위해 헬스 및 피트니스, 엔터테인먼트, 레스토랑, 호텔 용도를 타깃으로 하고 있습니다.
• 서밋 우즈 크로싱: 분기 종료 후 1억 3,000만 달러(제곱피트당 189달러)에 인수했습니다. 545,000제곱피트 규모의 이 센터는 점유율이 99%였습니다. 경영진은 이 자산을 로우스(Lowe's) 및 콜스(Kohl's)를 포함해 시세보다 낮게 계약된 임대 건을 다수 보유한 고품질 자산으로 평가했습니다.

구조화 투자

CTO는 7월에 3,700만 달러 규모의 대출을 집행했으며, 계약 체결 시점에 2,980만 달러가 집행되었습니다. 만기 2년의 이 대출은 오스틴 복합용도 자산의 임차권을 담보로 하며, 9.75%의 초기 현금 수익률을 제공합니다.

분기 종료 후, 회사는 10개 쇼핑센터를 소유한 합작법인에 3,200만 달러 규모의 우선주 투자를 진행했습니다. 만기 3년의 이 투자는 7%의 현물지급(PIK) 수익을 포함해 17%의 수익률을 제공합니다. 경영진은 해당 포지션을 계속 보유할 것으로 예상합니다.

구조화 투자 포트폴리오는 현재 총 약 2억 6,000만 달러 규모이며 복합 수익률은 12.1%입니다. 경영진은 상업용 대출이 감가상각 전 자산의 약 15% 수준인 회사의 목표 상한선에 근접했다고 밝혔습니다.

재무상태표 및 자금 조달

CTO는 4억 달러 규모의 회전한도대출과 2029년 9월부터 2032년 3월 사이에 만기가 도래하는 6억 달러 규모의 기간대출로 구성된 10억 달러 규모의 무담보 신용공여 한도를 약정 체결했습니다. 이 거래를 통해 약정액과 유동성이 2억 5,000만 달러 증가했으며, 가중평균 부채 만기는 1.6년에서 4.3년으로 연장되었습니다.

회사는 또한 주당 평균 총발행가 21.83달러에 ATM(At-The-Market) 주식 발행 프로그램을 통해 2,730만 달러의 순수익을 조달했습니다. 유일한 담보 모기지를 상환한 후 모든 부채는 무담보 상태가 되었습니다.

경영진은 단기 활동 자금을 조달하기 위해 주가에 의존할 필요가 없으며, 기회주의적 자산 재활용(매각 후 재투자)에 주력할 예정이라고 밝혔습니다. 수용 가능한 가격 수준이 형성될 경우 향후 6개월 이내에 일부 자산 재활용 활동이 이뤄질 것으로 예상하고 있습니다.

경영진 가이던스

경영진은 Core FFO 가이던스의 중간값이 2025년 대비 약 14% 성장을 의미한다고 밝혔습니다. 가이던스 범위 내 4분기 실적은 임대료 지급 개시일과 매출 연동 임대료에 부분적으로 좌우될 것입니다.

리스크 및 관전 포인트

• 경영진은 최근 거래 이후 레버리지가 분기 말 5.9배에서 약 6.5배로 상승할 것으로 예상합니다. 그러나 이후 계약 완료 미개장 파이프라인과 부속 부지 수입으로 레버리지가 약 0.2배 감소할 수 있습니다.
• 약 1억 달러 규모를 커버하는 스왑 계약이 2027년에 만기 도래하여 적용 금리가 약 180베이시스포인트 상승할 예정입니다. 경영진은 2028년에는 이와 유사한 수준의 스왑 관련 부담이 발생하지 않을 것으로 기대합니다.
• 크로스로드 타운 센터에서 하킨스 극장이 크런치 피트니스로 교체됨에 따라 2027년 초 하킨스의 퇴거 시점과 2028년 크런치의 임대료 지급 개시 시점 사이에 약 12개월의 공실 기간이 발생할 것으로 예상됩니다.
• 조나 로사는 상당한 임대율 상승 잠재력을 가지고 있지만 67% 임대된 상태로 포트폴리오에 편입되었습니다. 경영진은 이연 수리·보수 비용이 아닌 임차인 관련 투자가 주요 자금 소요 항목이 될 것이라고 설명했습니다.
• 경영진에 따르면 높은 금리가 리테일 센터에 대한 매수자 수요를 없애지는 않았지만, 6개월 전과 비교해 약 25~30베이시스포인트의 가격 조정으로 이어질 수 있습니다.

애널리스트 Q&A 하이라이트

경영진은 임대 수요가 견조하며 우수한 임차인들에 의해 뒷받침되고 있다고 설명했으나, 시장이 이용 가능한 공간을 확보하기 위해 몰려드는 분위기라고 평가하지는 않았습니다.

앨버커키 오피스 자산의 경우, CTO는 피델리티의 향후 공간 수요를 평가하고 뉴멕시코주의 새 행정부를 기다린 후 2027년에 자산을 최적화할 계획입니다. 경영진은 조기에 매각하여 잠재 가치를 실현하지 못하는 상황을 원치 않는다고 밝혔습니다.

2028년 임대 만기와 관련해 경영진은 록월의 저임대료 JCPenney 임대 계약, 앨버커키의 피델리티 공간, 그리고 크런치 피트니스에 이미 사전 임대된 하킨스 매장 위치를 강조했습니다. 소형 매장 재계약도 추가적인 임대료 성장 기회를 제공할 것으로 기대됩니다.

경영진은 쇼핑센터 자산에 대한 수요가 핵심 자본에 의해 지속해서 뒷받침되고 있다고 밝혔습니다. CTO는 특히 프리미엄 가격을 확보할 수 있고 안정적이지만 성장이 더딘 자산을 중심으로 선별적인 매각을 추진할 방침입니다.

실적 발표 컨퍼런스 콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

Good day and thank you for standing by. Welcome to the CTO Realty Growth 2026 Quarter 3 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your first speaker today, Jenna McKinney, Director of Finance. Jenna, please go ahead.

Jenna McKinney

Good morning, everyone and thank you for joining us today for the CTO Realty Growth Third Quarter 2026 Operating Results Conference Call. Participating on the call this morning are John Albright, President and Chief Executive Officer; Philip Mays, Chief Financial Officer; and other members of the executive team who will be available to answer questions during the call.

I would like to remind everyone that many of our comments today are considered forward-looking statements under federal securities laws. The company's actual future results may differ materially 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 discussed from time to time in greater detail in the company's Form 10-K, Form 10-Q and other SEC filings. You can find our SEC reports, earnings release, supplemental and most recent investor presentation on our website at ctoreit.com.

With that, I will turn the call over to John.

John Albright

Thanks, Jenna and good morning, everyone. The third quarter was very productive for CTO as we continued our strong leasing and investment momentum. During the quarter, we signed 467,000 square feet of leases and completed $102.3 million of investments at a weighted average yield of 9.1%. That brings our 9-month total to 833,000 square feet of leasing and $336.5 million of investments at a weighted average yield of 9.4%. This activity drove core FFO per diluted share growth of 10.4% for the quarter and 13.8% for the 9 months. We have now addressed all 11 of our vacated anchor spaces. And just after the quarter end, we signed approximately 75,000 square feet of new leases at Pompano Citi Centre and completed an additional $135.8 million of investments, bringing year-to-date investments to $472 million at a weighted average yield of 9.4%.

Reflecting all of this activity, we are raising our 2026 core FFO guidance, which Phil will walk through shortly. Starting with leasing, our third quarter activity included 396,000 square feet of comparable leases at a 7% cash rent spread. Year-to-date comparable leasing totals 726,000 square feet at a 9% cash rent spread. Regarding the vacated anchor spaces, we addressed the last remaining box this quarter by subdividing the former Conn's space at Carolina Pavilion in Charlotte and signing leases with Cavender's and 2nd & Charles. We're pleased with how this all played out. Of the 11 spaces, 9 have been re-leased at approximately 70% positive spread. The remaining 2, as previously announced, are under contract to be sold to a national retailer for $20.7 million with closing expected in the fourth quarter. We expect these new anchors to bring more traffic to our centers and benefit the adjacent small shop space.

A few other leasing highlights. First, we signed a 55,000 square foot lease with Crunch Fitness at Crossroads Towne Center in Phoenix to replace Harkins Theatres. Although the Harkins lease runs through late 2028, we had negotiated an early termination right. That let us proactively backfill the space at a positive cash spread with a view that it will drive more foot traffic. We expect roughly 12 months of downtime between Harkins vacating early 2027 and the Crunch lease commencing in 2028. Second, just after the quarter end, Amped Fitness signed a lease to expand by 19,000 square feet at Pompano Citi Centre, bringing this immersive experience-driven fitness destination to 53,000 square feet.

An Amped affiliate also leased 56,000 square feet for research, development and testing of gym equipment and experiential rooms as well as office operations. This space is part of the 62,000 square feet of unfinished second floor shell space we identified as upside when we acquired the property last December. Because the space isn't currently in the center's square footage, the lease will increase Pompano Citi Centre to 565,000 square feet. Third, our outparcel program. This quarter, we signed 4 leases at multi-tenant buildings in 2 outparcel developments, T-Mobile at The Plaza at Rockwall and Jason's Deli, Acapella Nail Spa and Nothing Bundt Cakes at Beaver Creek in Raleigh. Together with the Swig and Cooper's Hawk leases signed earlier this year, we're making steady progress.

We continue to expect a blended low double-digit unlevered yield on about $30 million of investments across these 6 outparcels with earnings contribution beginning in 2027 and the full benefit in 2028.

Turning to occupancy. Excluding Zona Rosa, leased occupancy increased to 95.7% from 95.4% last quarter. Including Zona Rosa, which was 67% leased when we acquired it, the total portfolio was 92.4% leased at September 30. Zona Rosa gives us real room to grow, which I'll come back to in a moment. At quarter end, our signed-not-open pipeline was $5.6 million or about 4.6% of in-place cash rent. That's down modestly from last quarter, mainly because the State of New Mexico began paying rent at our Albuquerque property in September, though new leasing during the quarter offset most of this impact. We expect the majority of the signed-not-open pipeline to commence rent over the course of 2027.

Moving to investments. On our last call, we said we expected to close at least one more acquisition this year. We closed 2, both in Kansas City, a new market for CTO with more than 2.2 million people in a pro-business climate. Together, these 2 centers, both in strong local submarkets, add about 1.3 million square feet to our portfolio. First, Zona Rosa, which we acquired in the third quarter for approximately $63 million or $82 per square foot, well below replacement costs. It's a top lifestyle center in Kansas City's Northland submarket with about 5.5 million annual visits and is anchored by DICK's Sporting Goods, Barnes & Noble, Old Navy, Burlington and DSW.

Beyond the lease-up opportunity, the property includes 10 acres of entitled development land and about 100,000 square feet of underutilized space we can reposition. Second, Summit Woods Crossing, which we acquired in early October for $103 million or $189 per square foot, also well below replacement cost. It's a 545,000 square foot power center in Lee's Summit, one of the metro's most affluent submarket. It's 99% occupied and anchored by Lowe's, Kohl's, Best Buy, T.J. Maxx and Total Wine with a SuperTarget on the site that we don't own. With about 7.3 million annual visits, it's among the most visited shopping centers in the Kansas City metro area. These 2 acquisitions also strengthened our tenant credit with Dick's and Best Buy, both investment grade becoming our 2 largest tenants.

On the structured investment side, in July, we originated a $37 million loan, of which $29.8 million was funded at closing. It's secured by a leasehold interest in a mixed-use property in Austin, Texas, has a 2-year term and carries a 9.75% initial cash yield. Then after quarter end, we closed a $32 million preferred equity investment in a joint venture that owns 10 shopping centers. It is fully funded at closing, has a 3-year term and yields 17%, including 7% pay in kind. Our structured investment portfolio now totals approximately $260 million at a blended rate of 12.1%.

Finally, during the quarter, we closed a new expanded credit facility that gives us ample capacity to fund this activity. Phil will cover the details. In summary, we're very pleased with the 9 months of 2026. We believe our embedded growth drivers, including below-market in-place rents, the signed-not-open pipeline, lease-up opportunities, outparcel developments and disciplined capital recycling positions CTO for meaningful earnings growth.

With that, I'll turn the call over to Phil.

Philip Mays

Thanks, John. On this call, I will briefly highlight our quarterly results and provide an update on our balance sheet and revised full year outlook. Starting with operating results. For the third quarter, core FFO was $0.53 per diluted share, up 10.4% from $0.48 a year ago. Growth was driven primarily by leases that commenced paying rent over the past year, along with contributions from our property acquisitions and structured investments. Year-to-date, core FFO was $1.57 per diluted share, up 13.8%. Shopping center same-property NOI grew 3.8% for the quarter and 6.2% for the year-to-date.

As we flagged on our last call, growth moderated as several anchors that opened in late 2025 moved into the prior year comparable period. Including a few noncore properties, total same-property NOI grew 2.3% for the quarter. This reflects the downtime at our last significant noncore property in Albuquerque, where space vacated last December is now leased to the State of New Mexico, which recently commenced paying rent, as John noted. Turning to PINE. Income from our management agreement and equity investment was $2.2 million for the quarter and our annualized run rate is now $9 million, consisting of $5.8 million of management fees and $3.2 million of dividend income.

Moving to the balance sheet. During the quarter, we closed a $1 billion unsecured credit facility, consisting of a $400 million revolver and $600 million of term loans with maturities ranging from September 2029 to March 2032. The facility added $250 million of commitments and liquidity and extended our weighted average debt maturity to 4.3 years from 1.6 years. Also during the quarter, we raised $27.3 million of net proceeds through our ATM program at an average gross price of $21.83 per share and repaid our only secured mortgage. Our debt is now entirely unsecured.

We ended the quarter with net debt to pro forma adjusted EBITDA of 5.9x, essentially in line with the last quarter and down from 6.7x a year ago and approximately $255 million of liquidity. Total debt was $723 million at a weighted average interest rate of 4.7%. Finally, turning to guidance. We're raising our 2026 core FFO guidance to a range of $2.11 to $2.14 per diluted share, up from $2.09 to $2.13. At the midpoint, that represents approximately 14% growth over 2025. We're also raising the low end of our AFFO guidance to a new range of $2.22 to $2.25 per diluted share, up from $2.21 to $2.25. Key assumptions in our revised guidance include shopping center same-property NOI growth of 5% to 6%, investment volumes, including commercial loans and structured investments of approximately $472 million, up from our prior range of $300 million to $400 million and general and administrative expenses of $21 million to $21.5 million.

With that, operator, please open the line for questions.

Operator

[Operator Instructions] Our first question comes from Jay Kornreich of Cantor Fitzgerald.

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Jay Kornreich

Can you talk just about the general supply-demand fundamentals you're seeing across the portfolio? I guess, are the power centers currently a landlord's market via pricing power? And if so, is that a trend you expect to continue throughout 2027?

John Albright

Yes. Thanks, Jay. Yes, we're seeing still good activity on the leasing front from really good quality tenants. I wouldn't say that it's like a mad grab for space or anything like that but good consistent demand and the type of tenants you want.

Jay Kornreich

Okay. And then maybe just shifting to the office property in New Mexico. Just curious if there's any update there for opportunities to start marketing that asset and any update to timing when a potential sale could happen?

John Albright

Sure. So basically, State of New Mexico is now in, so that's great. We're talking to the other tenant, Fidelity, about kind of what their space needs are going forward and then waiting for the new administration in the State of New Mexico to come online next year. So basically, next year, we'll kind of basically optimize the property rather than hastily sell it when it might be leaving some easy money on the table.

Operator

Our next question comes from Matthew Erdner of Jones.

Matthew Erdner

I'd like to kind of touch on the 2 recent acquisitions in Kansas City. You touched a little bit on why you like the environment there. But I guess what's the opportunity that you kind of see at Zona Rosa, just the amount that you guys are able to kind of bring online over the next couple of years?

John Albright

Yes. So the property had been owned by a entity that had foreclosed on it. So there wasn't very much outreach on the leasing side. And so I feel like -- the property has some very high-performing tenants. So we've done this many times before and I think that there's a lot of opportunity on the health and fitness side, on the entertainment side, on the restaurant side and then also talked to hotel developers about the pad sites. And so just really attacking on all sides. And given that we bought it at a nice opportunistic current yield and with all that vacancy opportunity to lease up, it's -- we're really excited about the opportunity there.

Matthew Erdner

Yes, that's good to hear. And then as it relates to kind of the leasing opportunity through '28, it's about 25% of ABR right now. I guess how much of that is attributable to Zona Rosa and kind of the newer acquisitions? And then again, just the opportunity to kind of drive spreads higher there?

John Albright

I'll let Phil address that.

Philip Mays

On the -- you're asking on the '28 expirations, how much is attributable to Zona Rosa?

Matthew Erdner

Yes.

Philip Mays

There's not too much in there. What is in there, we feel really good about. There's the JCPenney's renewal at Rockwall. It's a very, very low rent. So we feel good they'll renew. There's actually Fidelity's renewal, which is in there, which John was talking about earlier at Albuquerque. They've recently generally rightsized. So we feel good about that. And then the other really large one in there is Harkins at Crossroads, which John talked about. We've already kind of proactively re-leased that with Crunch Fitness. Those are the larger ones in there. After that, a lot of small shops. Some have contractual extensions, some don't. So that will be where we'll kind of grow our rents, is in those small shop renewals.

Operator

Our next question comes from Rob Stevenson of Huntington.

Robert Stevenson

How are you thinking about equity funding in the near and intermediate term with the stock now sort of sub-20 at this point?

John Albright

Yes. I mean, obviously, we don't think the stock is at the right price. And now that we've done the investments -- a lot of investments this year, almost sort of getting close to the market cap of the company. We're not like needing to expect that the stock price to be at a certain level to raise equity here. So we've done enough investments. We're definitely looking at the recycling side. Can we get premium pricing on some of the assets that are now stabilized and slower growing? And so you probably see more of that. So we don't really need to rely on the equity price to be at a certain level.

Robert Stevenson

Okay. I guess given that comment, John, how are higher rates impacting the demand for some of the assets that you want to sell at this point? Are you still seeing decent demand and the brokers think that you could achieve the pricing? Is it a situation where people have sort of pulled back, waiting to see what winds up happening over the next couple of months in terms of moves, et cetera? How would you characterize that today?

John Albright

Yes. You still have a large capital base of capital that wants to get back into the space or get into the space as far as the retail shopping centers. And they're going to plow through no matter kind of what. Now they'll have pricing adjustments based on rates but it's not going to inhibit the demand for sure. So the demand is there from the right capital being very core capital. And of course, there'll be a little pricing adjustment, whether it's probably 25 bps, 30 bps from 6 months ago, something like that but nothing dramatic.

Robert Stevenson

Okay. And then, Phil, what is the pace of the $5.6 million signed-not-open? It doesn't sound like Crunch starts until 2028 but when do the big pieces of that $5.6 million start to hit the revenue line for you guys?

Philip Mays

Yes. So we actually put in our investor presentation there. We schedule it out by year. So that might be helpful. But of the $5.6 million, about $3.2 million comes online in '27. And pretty much all of it is online for '28. So we get really the full benefit in '28, a little over half the benefit in '27.

Robert Stevenson

And then last one for...

Philip Mays

That doesn't reflect the leasing of Pompano that John talked about that happened just after the end of the quarter. And so that will be a little more incremental positive on top of what's in the signed-not-open pipeline currently.

Robert Stevenson

Okay. And should we -- that $3.2 million in '27, is that sort of throughout the weighted throughout the -- weighted fairly evenly throughout the year? Or is there like a big chunk in any specific quarters that we need to be aware of in the back half?

Philip Mays

Kind of back-end leases, it's right around the middle of the year.

Robert Stevenson

Okay. And then last one for me. So the guidance today, what gets you sort of at the high end? I mean the low end of the guidance range for both core and AFFO is about $0.01 better than what you did in the third quarter. But the high end of that range is a few pennies higher than that. What's the sort of variable that gets you from the sort of low end to the high end of the guidance range for the year?

Philip Mays

Yes. I mean it's a few things. A lot of it's signed-not-open rent commencement. Some of that could come online late this year and that would bump us up. That's probably -- that -- there's always in the fourth quarter, there's percent rent, right? And we have a significant amount that happens in the fourth quarter. So it's really just rent commencement dates, percent rent and where those shake out in the fourth quarter.

Operator

Our next question comes from Craig Kucera of Lucid Capital Markets.

Craig Kucera

I want to circle back to Zona Rosa, which is a pretty interesting acquisition. I guess you have about 250,000 square feet of vacancy there and you mentioned you also had 100,000 square feet of underutilized space. Can you -- are those -- those are independent of each other, correct?

Philip Mays

The 100,000 is part of the 250,000. Yes. So it's in total but there's 100,000 that's just very underutilized where it sits and not really activated because there's not an anchor to really drive people back there currently. And we're working on finding ways to implement and activate that part of the center to get some leasing momentum for that 100,000 specifically. But it's in -- the 250,000 includes that, Craig.

Craig Kucera

Okay. That's helpful. And are you expecting a meaningful amount of CapEx to reposition this acquisition? Or is there a lot of low-hanging fruit maybe like we saw at Carolina Pavilion?

John Albright

Yes, there's not a lot of capital needed to do to -- basically deferred maintenance or anything. There definitely is deferred maintenance but it's not a huge amount. And we're working on all that landscaping, painting, that sort of thing. But the real capital will come with tenants. So very much revenue-producing sort of capital yielding investment.

Craig Kucera

Right. That makes sense. And as far as repositioning there, is this a situation where some of the tenants are paying way below market and you can kind of replace them with markets? Or is it really more what you alluded to before, I think about bringing in like health and fitness and a restaurant, maybe hotels on the pads?

John Albright

Yes, it's more about activating the property to its potential. So there's not any huge mark-to-market. It's just a lot of vacancy opportunity and missing uses.

Craig Kucera

Okay. That makes sense. Changing gears with the $32 million preferred equity investment you made earlier this quarter, are you likely to keep that whole investment or sell a portion similar to what you did at PINE for some of the higher-yielding investments you have there?

John Albright

Yes. That one, we're really lucky to have and happy to help out on the transaction that transpired as a -- on a portfolio that we tried to buy. And so we lost on the transaction but was able to do this preferred investment at a lower basis than where we were willing to buy the portfolio. So we expect that to be a hold.

Craig Kucera

Okay. And Phil, is the swap on the 2030 term loan, is the only swap expiring next year?

Philip Mays

Yes, there's one swap maturing. It's on about $100 million and it rolls up about 180 basis points. I can't remember, Craig, if that's on the 2030 or the 2032 loan but either way, it's 2032 loan. It's $100 million and it will roll up 180 basis points. That's the only one we have changing in '27. In '28, we got a couple but they're fairly close to market. So there won't be a significant drag in '28 from any swaps expiring.

Craig Kucera

Okay. And just one more for me. You mentioned the lease termination at Harkins. How much was that fee? And was that recognized in the third quarter? Or will be recognized this quarter or in the future?

Philip Mays

Yes. There was -- that was really more -- we just got an early termination option. So we actually just in order to get that and have the flexibility to exercise it on timing that works with Crunch coming in and limiting the downtime. We just actually just gave them a little bit of break in rent. We didn't get any income and then we got that option in exchange for that break in rent. And Crunch is well underway of working to get all their approvals and everything. And then we'll hit that option at the most opportune time to limit the downtime there. So there's no kind of onetime income this quarter related to that.

Operator

Our next question comes from Gaurav Mehta at Alliance Global Partners.

Gaurav Mehta

I wanted to follow up on the $32 million loan that you guys did in 4Q. Why is the yield at 17% higher than, I guess, some of the other loans that you've done in the past?

John Albright

Just because the complexity of the transaction, is fast moving, needed to be done by a date certain. It gave them some flexibility on when they can kind of repay us, expect it to be more of a 2-year duration sort of investment. So it was just really -- they had to have the capital by a certain time and didn't have a lot of time to go shop around. So we -- because we, as I mentioned before, tried to acquire the portfolio, we had already underwritten it. And if they went out to other people that would need time to underwrite it, it would be impossible for them to have something closed in the timing they needed to have it closed.

Gaurav Mehta

Okay. Second question, your commercial loan investments seem like they're 14% of undepreciated assets. Can you remind us what the target is for the loan investment portfolio?

John Albright

Yes. I mean this is basically the level, 15%, I think we mentioned before. So I don't anticipate this going higher than the level where it is right now.

Operator

Our next question comes from John Massocca of B. Riley Securities.

John Massocca

So maybe just given some moving pieces, particularly happening subsequent to quarter end and your outlook on the capital markets, how are you thinking about leverage currently? And I guess you mentioned it a little bit to one of the earlier questions but does that kind of set up for some more maybe systematic dispositions next year? Or are you kind of happy at this level or maybe more opportunistic with sales?

Philip Mays

Yes. I'll take the leverage piece, John. So at the end of the quarter, we were a little under 6x. With all that activity, I think we go up to maybe 6.5x debt-to-EBITDA. And then keep in mind, we have a really robust signed-not-open pipeline. We have these pads. I'm not going to take it down 0.5 turn or anything but they will incrementally bring it down 0.2 turn or so, right? So we'd be in the low 6s. So it's a level we're comfortable with. But that said, we'll be -- we can always look to recycle depending on the opportunities we're seeing. On the market side, I'll let John answer.

John Albright

Yes. I mean I think, as I mentioned before, we'll opportunistically recycle if we get the right pricing for some of the assets. So I expect something to happen in the next 6 months on the recycling side but -- so expect a little bit of that.

John Massocca

Okay. And then on the Summit Woods transaction, anything to be aware of that could be kind of additive there, either kind of re-tenanting or re-leasing? Or is it just kind of a very attractive day 1 yield for the quality of asset you purchased?

John Albright

Yes. I would say it's the latter. That is a really high-quality property with solid tenant quality but there are very below-market leases on that property. The Kohl's and the Lowe's are really low rents. So almost sort of like a covered land play, if you will. But yes, we like the solid nature of the asset.

John Massocca

Okay. And then on Pompano Citi Centre, you're kind of adding square footage with the new tenant. Is there any more opportunities for that with some of the second floor space if you can activate it? Or is that kind of going to be fully utilized post that lease-up?

John Albright

No, we still have room to go there. There's still opportunity there on the leasing side and we're getting really good traction. So we're excited about the runway at Pompano. So the Amped expansion is going to do a lot for just driving more energy there. And we're taking out -- they're taking over corridor space. So expenses that we were paying on sort of dead space, that's going to go away. So it's all kind of lining up really well for us.

John Massocca

And I mean how much more square footage could kind of be added either as the cost of what Amped is doing or just absolutely?

Philip Mays

Yes. No. So the lease at the end of the quarter was low 90s percent like 92%, 93%. So there's a lot of runway just there and that's on the existing square feet. Amped took the vast majority of that unfinished space and for lack of a better way to describe it, it was like enclosed structure parking. I mean -- and they took 55,000 square feet and that space was, I think, right around 60,000 square feet. And we had underwritten that at 0. And while we -- as -- while we tend to do that to be conservative on our underwriting, John and our Head of Leasing take it very personal and they went out and found a creative use for it there. So that unfinished space now is largely filled with Amped but we still have a lot of runway just on the property itself because it's relatively, on a relative basis, low leased.

Operator

I am showing no further questions at this time. This concludes the question-and-answer session. Thank you for your participation in today's conference. This does conclude the program and you may now disconnect.