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Cto Realty Growth, Inc. (CTO)
:CTO
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CTO Realty Growth
(NYSE:CTO)
Rating:60Neutral
Price Target:
$18.50
▲( 3.58% Upside)
CTO Realty Growth (CTO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$600.40M
Dividend Yield8.34%
Average Volume (3M)240.25K
Price to Earnings (P/E)36.9
Beta (1Y)0.45
Revenue Growth17.48%
EPS Growth-172.41%
CountryUS
Employees37
SectorReal Estate
Sector Strength62
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.01
Shares Outstanding32,934,715
10 Day Avg. Volume207,350
30 Day Avg. Volume240,248
Financial Highlights & Ratios
PEG Ratio1.08
Price to Book (P/B)0.96
Price to Sales (P/S)0.00
P/FCF Ratio9.38
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 Upside25.03% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
CTO Realty Growth Business Overview & Revenue Model
Company DescriptionCTO Realty Growth, Inc. is a Florida-based publicly traded real estate company, which owns income properties comprised of approximately 2.4 million square feet in diversified markets in the United States and an approximately 23.5% interest in Alpine Income Property Trust, Inc., a publicly traded net lease real estate investment trust (NYSE: PINE).
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 due to a net loss in 2024. The balance sheet reveals moderate leverage with a stable equity position, although increased debt levels are a risk. Cash flow metrics are strong with significant improvements in operating and free cash flow.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 | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 132.20M | 124.52M | 109.12M | 82.32M | 70.27M | 56.38M | Gross Profit |
| 86.11M | 91.30M | 78.94M | 59.46M | 47.84M | 41.17M | EBIT |
| 11.03M | 17.61M | 26.51M | 17.71M | 16.06M | 12.28M | EBITDA |
| 40.50M | 75.03M | 71.70M | 46.56M | 36.64M | 29.60M | Net Income Common Stockholders |
| -5.55M | -1.97M | 5.53M | 3.16M | 29.94M | 78.51M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 47.93M | 48.68M | 49.66M | 61.37M | 49.65M | 34.86M | Total Assets |
| 1.24B | 1.18B | 989.67M | 986.54M | 733.14M | 665.93M | Total Debt |
| 0.00 | 534.41M | 506.23M | 496.25M | 278.27M | 273.06M | Net Debt |
| 611.42M | 525.39M | 496.01M | 476.92M | 269.66M | 268.77M | Total Liabilities |
| 650.02M | 568.85M | 532.14M | 481.77M | 302.66M | 315.03M | Stockholders Equity |
| 593.88M | 612.80M | 457.53M | 504.77M | 430.48M | 350.90M |
| Cash Flow | Free Cash Flow | ||||
| 63.18M | 69.35M | 46.42M | -257.83M | -228.80M | -150.88M | Operating Cash Flow |
| 67.90M | 69.35M | 46.42M | 56.10M | 27.58M | 16.93M | Investing Cash Flow |
| -270.85M | -242.15M | -52.56M | -267.63M | -102.97M | -91.12M | Financing Cash Flow |
| 203.49M | 172.35M | 2.77M | 201.38M | 72.91M | -26.89M |
CTO Realty Growth Technical Analysis
Negative
17.86
Price Trends
18.28
Negative
18.71
Negative
18.70
Negative
Market Momentum
-0.05
Negative
43.52
Neutral
41.95
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 17.86 is below the 20-day moving average (MA) of 18.05, below the 50-day MA of 18.28, and below the 200-day MA of 18.70, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 43.52 is Neutral, neither overbought nor oversold. The STOCH value of 41.95 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 3 New Risks
1.
Future sales of our common stock or other securities convertible into our common stock could cause the market value of our common stock to decline and could result in dilution of your shares. Q4, 2024
2.
Artificial intelligence and other machine learning techniques could increase competitive, operational, legal and regulatory risks to our business in ways that we cannot predict. Q4, 2024
3.
Property insurance costs may continue to increase, and in some cases insurance may not be available. Q4, 2024
CTO Realty Growth Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $736.79M | 127.54 | 3.05% | 11.07% | -12.13% | -14.54% | |
70 Neutral | $526.47M | 18.02 | 9.57% | 7.38% | 1.82% | -1.03% | |
65 Neutral | $662.10M | 49.14 | 7.51% | 8.44% | 3.01% | ― | |
60 Neutral | $2.75B | 10.29 | 0.33% | 8508.22% | 5.95% | -17.48% | |
60 Neutral | $600.40M | 36.87 | -1.05% | 8.34% | 17.48% | -172.41% | |
57 Neutral | $452.31M | ― | -6.09% | 7.53% | -8.41% | 88.62% | |
50 Neutral | $683.62M | ― | -6.29% | 13.63% | -14.92% | -3.27% |
* Real Estate Sector Average
Performance Comparison
CTO
CTO Realty Growth
17.75
1.58
9.77%
GOOD
Gladstone Commercial
13.77
0.69
5.28%
OLP
One Liberty Properties
23.55
1.91
8.83%
AHH
Armada Hoffler Properties
6.83
-3.65
-34.83%
BRSP
BrightSpire Capital
5.08
-0.36
-6.62%
PKST
Peakstone Realty Trust
11.95
0.06
0.50%
CTO Realty Growth Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: -1.33%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
CTO Realty Growth demonstrated robust investment and leasing activities, with significant progress in managing anchor space vacancies and strategic financial management. However, challenges remain with tenant bankruptcies impacting earnings, and a slight decline in FFO per share.Q1-2025 Updates
Positive Updates
Strong Investment Activity
CTO Realty Growth acquired Ashley Park for $79.8 million at a high cap rate, with significant lease-up potential and below-market rents.
Positive Leasing Activity
Signed over 112,000 square feet of new leases, renewals, and extensions at an average rent 25% higher than the existing portfolio.
Anchor Space Re-leasing Progress
Executed leases for two anchor spaces and expecting positive cash leasing spread of 40% to 60% on the remaining spaces.
Financial Stability
Core FFO increased by $3.7 million compared to the previous year, and net debt to EBITDA improved to 6.6x, with liquidity of almost $140 million.
Interest Rate Management
Executed SOFR swaps reducing interest rate by nearly 100 basis points to 4.8%.
Negative Updates
Bankrupt Tenant Spaces
Ten anchor spaces were vacated due to tenant bankruptcies, impacting earnings with $9 million to $12 million expected in re-leasing CapEx.
Convertible Notes Settlement
Settlement of 3.875% convertible notes resulted in an extinguishment of debt charge of approximately $20.5 million.
Core FFO Per Share Decline
Core FFO per share decreased by $0.02 compared to the previous year due to leverage reduction and downtime from re-leasing activities.
Company Guidance
During CTO Realty Growth's First Quarter 2025 earnings call, the company provided guidance indicating a strong performance driven by investment and leasing activities. The acquisition of Ashley Park for $79.8 million was highlighted, with the property offering significant lease-up potential and below-market rents. Leasing activity was robust, with over 112,000 square feet of new leases, renewals, and extensions signed at an average rent of $24.14 per square foot, marking a 25% increase over the in-place portfolio average. The company expects a positive cash leasing spread of 40% to 60% from re-leasing anchor spaces vacated due to tenant bankruptcies. At quarter-end, the portfolio was 93.8% leased and 91% occupied, with a signed-not-open leasing pipeline representing $4 million of annual base rent. For full-year 2025, CTO reaffirmed its guidance for core FFO at $1.80 to $1.86 and AFFO at $1.93 to $1.98, despite macroeconomic uncertainties.CTO Realty Growth Corporate Events
Business Operations and StrategyFinancial Disclosures
CTO Realty Growth Reports Q1 2025 Financial Results
Neutral
May 1, 2025
On May 1, 2025, CTO Realty Growth announced its financial results for the first quarter of 2025, highlighting a net income of $0.01 per diluted share and a core FFO of $0.46 per diluted share. The company acquired a property in Atlanta for $79.8 million and reported a 37.2% increase in cash rent spread from signed leases. Despite a decrease in net income compared to the previous year, the company reaffirmed its full-year guidance and reported strong leasing spreads and a solid pipeline, indicating robust operational fundamentals.
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.
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.