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Cto Realty Growth, Inc. (CTO)
:CTO
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CTO Realty Growth
(NYSE:CTO)
Select Model
Select Model
Rating:52Neutral
Price Target:
$17.00
▲(6.52% Upside)
CTO Realty Growth's overall stock score reflects a mixed financial performance with strong cash flow generation but significant profitability challenges. The technical analysis suggests a neutral trend, while the valuation is pressured by a negative P/E ratio despite a high dividend yield. The earnings call provides some optimism with strong leasing activity, but also highlights ongoing challenges.
CTO Realty Growth (CTO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$525.72M
Dividend Yield9.52%
Average Volume (3M)262.41K
Price to Earnings (P/E)36.9
Beta (1Y)0.37
Revenue Growth22.26%
EPS Growth-328.46%
CountryUS
Employees37
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)-0.77
Shares Outstanding32,939,610
10 Day Avg. Volume344,462
30 Day Avg. Volume262,407
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)0.82
Price to Sales (P/S)4.01
P/FCF Ratio7.21
Enterprise Value/Market Cap2.22
Enterprise Value/Revenue8.28
Enterprise Value/Gross Profit11.15
Enterprise Value/Ebitda60.89
Forecast
1Y Price Target
$21.67Price Target Upside35.78% 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 generates revenue primarily through rental income from its portfolio of commercial properties. The company leases its properties to various tenants, which provide a steady stream of cash flow. Additionally, CTO may engage in property sales and acquisitions, allowing for capital appreciation and potential gains from increased property values. The company's revenue model is supported by long-term lease agreements, which provide predictability in earnings. Furthermore, CTO may benefit from partnerships with property management firms that enhance operational efficiency and tenant relations, contributing to its overall profitability.
CTO Realty Growth Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong leasing momentum and successful negotiation of anchor spaces, driving future earnings potential. However, challenges such as anchor tenant vacancies, temporary occupancy declines, and debt extinguishment costs were noted. The improvements in core FFO and debt management are positive indicators, but the balance of highlights and lowlights suggests a measured outlook.Q2-2025 Updates
Positive Updates
Strong Leasing Momentum
Signed approximately 227,000 square feet of new leases, renewals, and extensions at an average cash base rent of $25.43 per square foot, including 190,000 square feet of comparable leases at a 22% cash rent spread.
Positive Anchor Space Developments
Full control of 10 anchor spaces with new leases executed for 5, including Burlington and Bob's Discount Furniture, anticipating a positive cash leasing spread of 40% to 60%.
Robust Signed Not Open Pipeline
Signed not open pipeline stands at $4.6 million, representing 4.6% of in-place cash rents, providing earnings tailwinds into 2026.
Carolina Pavilion Leasing Success
Leased 2 of 4 anchor spaces at Carolina Pavilion and in active negotiations for the remaining. Expect to achieve an unlevered double-digit yield.
Improved Debt Management
Settled 3.875% convertible notes with a balance of approximately $51 million, ending the quarter with $606.8 million of debt and net debt to EBITDA improved from 7.5x to 6.9x year-over-year.
Increased Core FFO
Core FFO was $14.7 million for the quarter, a $4.3 million increase compared to $10.3 million in the prior year.
Negative Updates
Anchor Tenant Vacancies
Party City and JOANN's vacated, leading to temporary occupancy challenges with Staples lease expiring and transitioning to Barnes & Noble.
Debt Extinguishment Costs
Repayment of convertible notes resulted in an extinguishment of debt charge of approximately $20.4 million.
Occupancy Rate Decline
Property portfolio was 93.9% leased and 90.2% occupied at the end of the quarter, slightly down due to vacated anchor spaces.
Fidelity Lease Downsize
Fidelity is reducing their space in an Albuquerque property to approximately half, though offset by a new lease with the state of New Mexico.
Company Guidance
In the second quarter of 2025, CTO Realty Growth reported robust leasing activity, signing approximately 227,000 square feet of new leases, renewals, and extensions at an average cash base rent of $25.43 per square foot, achieving a 22% cash rent spread on 190,000 square feet of comparable leases. Year-to-date, the company completed 339,000 square feet of leasing, with a 27% cash rent spread on 299,000 square feet of comparable leases. The company's property portfolio was 93.9% leased and 90.2% occupied at the quarter's end. The signed not open pipeline stands at $4.6 million, representing 4.6% of in-place cash rents. On the investment front, the company ended the quarter with $606.8 million of debt, with a net debt to EBITDA ratio of 6.9x, and maintained liquidity of approximately $85 million. For the full year 2025, CTO Realty Growth reaffirmed guidance for core FFO of $1.80 to $1.86 per share and AFFO of $1.93 to $1.98 per share.CTO Realty Growth Financial Statement Overview
Summary
CTO Realty Growth shows strong gross profit margins and positive revenue growth, but faces profitability challenges with negative net income and EBIT margins. The balance sheet indicates increased leverage, posing potential risks, though cash flow generation is improving, providing some financial flexibility.Income Statement
CTO Realty Growth shows a mixed performance in its income statement. The gross profit margin remains strong at approximately 74% TTM, indicating efficient cost management. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -22.7% TTM. The EBIT margin is also negative, reflecting operational challenges. Revenue growth is positive at 6.65% TTM, but the overall profitability metrics suggest the company is facing significant headwinds.45
Neutral
Balance Sheet
The balance sheet of CTO Realty Growth presents a moderate risk profile. The debt-to-equity ratio has increased to 1.08 TTM, indicating a higher reliance on debt financing. Return on equity is negative, suggesting that the company is not generating sufficient returns on shareholders' equity. However, the equity ratio stands at 46.5%, showing a reasonable level of equity financing relative to total assets.50
Neutral
Cash Flow
CTO Realty Growth's cash flow statement reveals some positive trends. The free cash flow has grown by 21.8% TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is strong at 5.22, suggesting robust cash flow relative to earnings. However, the free cash flow to net income ratio is 1.0, which is neutral, indicating that all net income is being converted into free cash flow.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 141.00M | 124.52M | 109.12M | 82.32M | 70.27M | 56.38M |
| Gross Profit | 104.62M | 91.30M | 78.94M | 59.46M | 47.84M | 41.17M |
| EBITDA | 19.16M | 75.03M | 71.70M | 46.56M | 36.64M | 29.60M |
| Net Income | -32.02M | -1.97M | 5.53M | 3.16M | 29.94M | 78.51M |
Balance Sheet | ||||||
| Total Assets | 1.23B | 1.18B | 989.67M | 986.54M | 733.14M | 665.93M |
| Cash, Cash Equivalents and Short-Term Investments | 43.30M | 48.68M | 49.66M | 61.37M | 49.65M | 34.86M |
| Total Debt | 621.64M | 534.41M | 506.23M | 455.53M | 284.07M | 298.24M |
| Total Liabilities | 659.16M | 568.85M | 532.14M | 481.77M | 302.66M | 315.03M |
| Stockholders Equity | 574.06M | 612.80M | 457.53M | 504.77M | 430.48M | 350.90M |
Cash Flow | ||||||
| Free Cash Flow | 76.95M | 69.35M | 46.42M | -257.83M | -228.80M | -150.88M |
| Operating Cash Flow | 76.95M | 69.35M | 46.42M | 56.10M | 27.58M | 16.93M |
| Investing Cash Flow | -289.86M | -242.15M | -52.56M | -267.63M | -102.97M | -91.12M |
| Financing Cash Flow | 225.60M | 172.35M | 2.77M | 201.38M | 72.91M | -26.89M |
CTO Realty Growth Technical Analysis
Negative
15.96
Price Trends
16.48
Negative
16.92
Negative
17.51
Negative
Market Momentum
-0.14
Positive
36.18
Neutral
11.50
Positive
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 15.96 is below the 20-day moving average (MA) of 16.50, below the 50-day MA of 16.48, and below the 200-day MA of 17.51, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 36.18 is Neutral, neither overbought nor oversold. The STOCH value of 11.50 is Positive, 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | 474.12M | 16.81 | 9.33% | 8.20% | 5.57% | -14.50% | |
60 Neutral | 690.20M | 73.91 | 2.60% | 9.18% | -25.73% | ― | |
59 Neutral | 654.16M | 34.51 | 16.84% | 9.75% | 5.85% | ― | |
56 Neutral | 733.17M | -26.99 | -7.06% | 11.35% | -14.73% | 79.63% | |
52 Neutral | $525.72M | 36.87 | -5.66% | 9.52% | 22.26% | -328.46% | |
50 Neutral | 480.86M | -1.47 | -44.09% | 6.89% | -6.69% | -118.66% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
Performance Comparison
CTO
CTO Realty Growth
15.96
-1.56
-8.90%
GOOD
Gladstone Commercial
12.31
-2.66
-17.77%
OLP
One Liberty Properties
21.95
-3.69
-14.39%
AHH
Armada Hoffler Properties
6.81
-3.21
-32.04%
PKST
Peakstone Realty Trust
13.07
0.18
1.40%
FVR
FrontView REIT, Inc.
13.61
-4.89
-26.43%
CTO Realty Growth Corporate Events
Business Operations and StrategyFinancial Disclosures
CTO Realty Growth Reports Q2 2025 Financial Results
Neutral
Jul 29, 2025
On July 29, 2025, CTO Realty Growth announced its financial results for the second quarter of 2025, reporting a net loss attributable to common stockholders of $0.77 per diluted share. Despite the loss, the company signed 190,000 square feet of leases with a 21.6% positive cash rent spread, and reaffirmed its 2025 financial outlook. The company also highlighted significant progress in leasing vacant anchor spaces, which is expected to provide earnings tailwinds into 2026.
Executive/Board ChangesShareholder Meetings
CTO Realty Growth Holds 2025 Annual Meeting
Neutral
Jun 20, 2025
On June 18, 2025, CTO Realty Growth, Inc. held its 2025 Annual Meeting of Stockholders where key decisions were made, including the election of board members and the ratification of Grant Thornton LLP as the independent public accounting firm for 2025. Additionally, stockholders approved the executive compensation on a non-binding advisory basis, indicating continued support for the company’s leadership and strategic direction.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.