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CTO Realty Growth (CTO)
NYSE:CTO
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CTO Realty Growth
(NYSE:CTO)
68Neutral
CTO Realty Growth (CTO) vs. S&P 500 (SPY)
Market Cap
$575.74M
Dividend Yield8.7%
Average Volume (3M)408.47K
Price to Earnings (P/E)36.9
Beta (1Y)0.57
Revenue Growth14.11%
EPS Growth-667.02%
CountryUS
Employees37
SectorReal Estate
Sector Strength70
IndustryREIT - Diversified
Share Statistics
EPS (TTM)-0.41
Shares Outstanding32,936,966
10 Day Avg. Volume398,405
30 Day Avg. Volume408,468
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.83
Price to Cash Flow (P/CF)6.40
P/FCF Ratio7.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$22.33Price Target Upside27.53% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
CTO Realty Growth Business Overview & Revenue Model
Company DescriptionCTO Realty Growth, Inc. is a real estate investment trust (REIT) focused on acquiring and managing income-producing properties across the United States. The company primarily invests in retail, office, and mixed-use properties, leveraging its expertise in property management and development to drive growth and value creation for its shareholders. CTO Realty Growth is committed to delivering consistent financial performance through strategic asset acquisition and operational excellence.
How the Company Makes MoneyCTO Realty Growth makes money primarily through the acquisition and management of income-generating properties. The company earns revenue by leasing space in its portfolio of retail, office, and mixed-use properties to tenants, which provides a steady stream of rental income. Additionally, CTO Realty Growth may engage in property development or redevelopment projects, generating additional revenue through property sales or enhanced leasing opportunities. The company's revenue is also influenced by its strategic partnerships and joint ventures, which can provide access to new markets and investment opportunities. Overall, CTO Realty Growth aims to maximize shareholder value by efficiently managing its property portfolio and ensuring high occupancy rates.
CTO Realty Growth Financial Statement Overview
Summary
CTO Realty Growth shows strong revenue growth but faces profitability challenges, with a negative net income in 2024. The balance sheet is stable but has increased debt levels. Cash flow is strong, reflecting effective liquidity management.Income Statement
CTO Realty Growth has shown a consistent increase in total revenue over the years, with a notable revenue growth rate of 14.09% from 2023 to 2024. However, the company reported a net loss in 2024, leading to a negative net profit margin of -7.05%. The EBIT margin remains positive at 14.14%, indicating operational efficiency, but the EBITDA margin is negative due to high depreciation and amortization expenses. Overall, the revenue growth is promising, but profitability issues impact the score.65
Positive
Balance Sheet
The company's debt-to-equity ratio stands at 0.85, highlighting a moderate level of leverage. The return on equity has turned negative in 2024 due to net losses, indicating challenges in generating shareholder value. The equity ratio of 51.85% suggests a relatively balanced capital structure. While the balance sheet shows stability, the decrease in stockholders' equity and increased debt burden are concerns.58
Neutral
Cash Flow
CTO Realty Growth exhibited strong operating cash flow growth, with a significant increase from 2023 to 2024. The operating cash flow to net income ratio is robust, reflecting effective cash generation despite reported net losses. Free cash flow has improved significantly, showing a positive trajectory after previous deficits. The cash flow performance is strong, reflecting good liquidity management.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 124.52M | 109.12M | 82.32M | 70.27M | 56.38M | Gross Profit |
| 91.30M | 78.94M | 59.46M | 47.84M | 41.17M | EBIT |
| 17.61M | 26.51M | 17.71M | 16.06M | 12.28M | EBITDA |
| -96.01M | 71.70M | 46.56M | 36.64M | 29.60M | Net Income Common Stockholders |
| -1.97M | 5.53M | 3.16M | 29.94M | 78.51M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 48.68M | 49.66M | 61.37M | 49.65M | 34.86M | Total Assets |
| 1.18B | 989.67M | 986.54M | 733.14M | 665.93M | Total Debt |
| 518.99M | 506.23M | 496.25M | 278.27M | 273.06M | Net Debt |
| 509.98M | 496.01M | 476.92M | 269.66M | 268.77M | Total Liabilities |
| 568.85M | 532.14M | 481.77M | 302.66M | 315.03M | Stockholders Equity |
| 612.80M | 457.53M | 504.77M | 430.48M | 350.90M |
| Cash Flow | Free Cash Flow | |||
| 69.35M | 46.42M | -257.83M | -228.80M | -150.88M | Operating Cash Flow |
| 69.35M | 46.42M | 56.10M | 27.58M | 16.93M | Investing Cash Flow |
| -242.15M | -52.56M | -267.63M | -102.97M | -91.12M | Financing Cash Flow |
| 172.35M | 2.77M | 201.38M | 72.91M | -26.89M |
CTO Realty Growth Technical Analysis
Negative
17.51
Price Trends
18.89
Negative
19.07
Negative
18.62
Negative
Market Momentum
0.09
Negative
57.85
Neutral
75.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTO, the sentiment is Negative. The current price of 17.51 is below the 20-day moving average (MA) of 18.60, below the 50-day MA of 18.89, and below the 200-day MA of 18.62, indicating a bearish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 57.85 is Neutral, neither overbought nor oversold. The STOCH value of 75.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CTO.
CTO Realty Growth Risk Analysis
CTO Realty Growth disclosed 99 risk factors in its most recent earnings report. CTO Realty Growth reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CTO Realty Growth Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $506.43M | 16.70 | 9.80% | 7.67% | -0.09% | 1.93% | |
68 Neutral | $575.74M | 36.87 | -0.37% | 8.70% | 14.11% | -667.02% | |
68 Neutral | $684.92M | 28.38 | 5.73% | 11.58% | 6.17% | ― | |
63 Neutral | $612.71M | 50.26 | 7.10% | 9.02% | 1.22% | ― | |
63 Neutral | $419.04M | ― | -0.95% | 7.89% | -10.31% | 98.15% | |
61 Neutral | $4.21B | 15.62 | -3.65% | 12.27% | 6.29% | -21.37% | |
51 Neutral | $580.12M | ― | -11.39% | 15.32% | -11.51% | -756.83% |
* Real Estate Sector Average
Performance Comparison
CTO
CTO Realty Growth
17.51
2.09
13.55%
GOOD
Gladstone Commercial
13.43
1.30
10.72%
OLP
One Liberty Properties
23.66
3.52
17.48%
AHH
Armada Hoffler Properties
6.72
-2.72
-28.81%
BRSP
BrightSpire Capital
4.30
-1.22
-22.10%
PKST
Peakstone Realty Trust
11.08
-1.29
-10.43%
CTO Realty Growth Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -11.57% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant growth in core FFO, portfolio expansion, and strong leasing activity, demonstrating effective execution of strategic goals. However, challenges such as retailer bankruptcies and the cost of settling convertible notes present headwinds. Overall, the positive aspects significantly outweigh the challenges.Highlights
Record Core FFO Growth
Core FFO for 2024 was $1.88 per share, a record high for CTO Realty Growth, representing a growth of 6% from 2023.
Significant Portfolio Expansion
The portfolio grew by one million square feet or 26% to 4.7 million square feet, with a total enterprise value increase of 33% to approximately $1.3 billion.
Strong Leasing Activity
Signed more than 450,000 square feet at an average rent of $24.07 per square foot with a positive cash lease spread of 23%.
Robust Investment Activity
Achieved a weighted average yield of 9.3% with $227 million in retail property acquisitions and $104 million in structured investments.
Reduced Leverage and Improved Liquidity
Net debt to EBITDA improved, ending the year at 6.3 times, with over $200 million of liquidity available.
Lowlights
Impact of Retailer Bankruptcies
Recent bankruptcies affected several leases, including Big Lots, Conn's, and Party City, requiring efforts to regain and re-lease spaces.
Convertible Notes Settlement Cost
Settling convertible notes for cash in 2025 will cost approximately $0.05 per share due to the settlement price being at a premium.
Potential Delays in Rent Commencement
Rent from new tenants in spaces affected by bankruptcies is expected to commence during 2026, potentially delaying revenue recognition.
Company Guidance
During the earnings call for CTO Realty Growth, Inc.'s fourth quarter and full year 2024, the company provided detailed guidance and metrics for 2025. They established a core FFO range of $1.80 to $1.86 per share and an AFFO range of $1.93 to $1.98 per share. The company achieved a record core FFO of $1.88 per share for 2024, marking a 6% growth from 2023. Their portfolio expanded by 26%, adding one million square feet, bringing the total to 4.7 million square feet. CTO Realty completed $227 million in retail property acquisitions and $104 million in structured investments, achieving a weighted average yield of 9.3%. They ended 2024 with a total enterprise value of $1.3 billion, a 33% increase, and over $200 million in liquidity. For 2025, they are planning to manage a lease expiration that could see rents increase by approximately 10%, and they anticipate a robust acquisition pipeline without expected dispositions, leveraging their strengthened balance sheet. They also highlighted a $0.10 per share impact from spaces vacated due to retailer bankruptcies, which they plan to re-lease by 2026, potentially achieving rent spreads between 40% and 60%.CTO Realty Growth Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
CTO Realty Growth Completes Convertible Notes Exchange
Neutral
Apr 3, 2025
On April 3, 2025, CTO Realty Growth, Inc. completed privately-negotiated transactions with holders of $35.2 million in Convertible Senior Notes, exchanging them for 1,089,555 shares of common stock and $29 million in cash. This move reduced the outstanding principal amount of the Notes to $15.8 million, which is scheduled to be settled in cash by April 15, 2025. The transaction reflects CTO’s strategic financial management and impacts its financial obligations, potentially affecting stakeholder interests.
Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
CTO Realty Growth Reports Record High Core FFO
Positive
Feb 20, 2025
On February 20, 2025, CTO Realty Growth announced its financial results for the quarter and year ended December 31, 2024. The company closed investments totaling $330.8 million with a yield of 9.3%, raised $165.2 million through its ATM program, and ended the year with $222 million in liquidity. Despite a net loss of $0.35 per share for the full year, CTO reported a record high Core FFO of $1.88 per share, highlighting its strategic capital raising and leasing activities. The signed-not-open leasing pipeline stands at $5.2 million, indicating continued operational growth. The company’s performance reflects its strong investment strategy and liquidity management, positioning it well for future growth.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.