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CTO Realty Growth (CTO)
NYSE:CTO
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CTO Realty Growth
(NYSE:CTO)
Rating:63Neutral
Price Target:
$17.50
▲(4.67% Upside)
CTO Realty Growth (CTO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$543.50M
Dividend Yield9.09%
Average Volume (3M)300.10K
Price to Earnings (P/E)36.9
Beta (1Y)0.45
Revenue Growth22.26%
EPS Growth-328.46%
CountryUS
Employees37
SectorReal Estate
Sector Strength54
IndustryREIT - Diversified
Share Statistics
EPS (TTM)-0.77
Shares Outstanding32,939,610
10 Day Avg. Volume354,677
30 Day Avg. Volume300,104
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.15
Enterprise Value/Revenue8.28
Enterprise Value/Gross Profit11.15
Enterprise Value/Ebitda-43.06
Forecast
1Y Price Target
$20.63Price Target Upside23.39% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
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: -4.73%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong leasing momentum and strategic progress in managing anchor spaces and potential acquisitions, contributing to positive future earnings. However, there were challenges related to temporary occupancy declines and debt settlement impacts. Overall, the positive aspects of leasing and strategic planning outweigh the temporary setbacks.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, with a 22% cash rent spread. Year-to-date leasing reached 339,000 square feet with a 27% cash rent spread.
Significant Progress in Anchor Spaces
Resolved 6 out of 10 anchor spaces with new leases, including Burlington, Boot Barns, Bassett Furniture, Slick City Action Park, and Bob's Discount Furniture, aiming for a positive cash leasing spread of 40% to 60%.
Investment Pipeline and Opportunities
Currently considering acquisitions with one shopping center targeted in a core market, with potential value-add attributes.
Property Portfolio and Occupancy
Property portfolio consisting of 5.3 million square feet was 93.9% leased and 90.2% occupied at the end of the quarter.
Improved Balance Sheet Metrics
Net debt to EBITDA improved to 6.9x from 7.5x a year ago, despite a slight increase from 6.3x at the beginning of the year.
Core FFO Growth
Core FFO increased by $4.3 million compared to the same quarter of the prior year, reaching $14.7 million.
Negative Updates
Temporary Occupancy Decline
Physical occupancy declined due to transitions involving Party City and JOANN's vacating, and Staples transitioning to Barnes & Noble.
Convertible Notes Settlement Impact
The settlement of 3.875% convertible notes resulted in an extinguishment of debt charge of approximately $20.4 million.
Fidelity Office Space Reduction
Fidelity is reducing its space in the Albuquerque property, although it will be backfilled by the State of New Mexico.
Company Guidance
During the CTO Realty Growth Second Quarter 2025 Earnings Conference Call, the company highlighted several key metrics and guidance for the future. CTO signed 227,000 square feet of new leases, renewals, and extensions at an average cash base rent of $25.43 per square foot, with a 22% cash rent spread on 190,000 square feet of comparable leases. Year-to-date, they have completed 339,000 square feet of leasing, achieving a 27% cash rent spread on 299,000 square feet. A significant focus was on 10 anchor spaces with a goal to achieve a 40% to 60% positive cash leasing spread, with 6 of these spaces already resolved. Their property portfolio was 93.9% leased and 90.2% occupied. CTO's signed not open pipeline stood at $4.6 million, representing 4.6% of in-place cash rents. On the financial front, CTO completed the retirement of $51 million in convertible notes, resulting in an extinguishment of debt charge of $20.4 million, excluded from core FFO and AFFO calculations. The company ended the quarter with net debt to EBITDA at 6.9x, and liquidity of $85 million. CTO reaffirmed their full-year 2025 guidance, projecting core FFO of $1.80 to $1.86 per share and AFFO of $1.93 to $1.98 per share, with earnings from their leasing pipeline expected to become more noticeable by the fourth quarter.CTO Realty Growth Financial Statement Overview
Summary
CTO Realty Growth shows promising revenue growth with a 14.09% increase, but profitability is challenged by a net loss and negative net profit margin. The company maintains a positive EBIT margin, indicating operational efficiency, but faces high depreciation and amortization. Strong cash flow management provides liquidity support, although debt levels are a concern.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 | 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 | -27.10M | 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 | 0.00 | 519.29M | 506.23M | 496.25M | 278.27M | 273.06M |
| 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
16.72
Price Trends
17.44
Negative
17.65
Negative
18.20
Negative
Market Momentum
-0.30
Positive
45.24
Neutral
53.40
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 16.72 is below the 20-day moving average (MA) of 16.92, below the 50-day MA of 17.44, and below the 200-day MA of 18.20, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 45.24 is Neutral, neither overbought nor oversold. The STOCH value of 53.40 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 (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $502.42M | 17.99 | 9.16% | 7.71% | 5.57% | -14.50% | |
64 Neutral | $627.12M | 37.14 | 8.51% | 8.97% | 5.85% | ― | |
63 Neutral | $543.50M | 36.87 | -5.66% | 9.09% | 22.26% | -328.46% | |
63 Neutral | $724.65M | 77.72 | 3.55% | 9.56% | -25.73% | ― | |
55 Neutral | $713.67M | ― | -2.41% | 11.66% | -14.73% | 79.63% | |
53 Neutral | $1.23B | 2.72 | -2.60% | 5.67% | -2.15% | -149.23% | |
48 Neutral | $442.23M | ― | -35.52% | 7.28% | -6.69% | -118.66% |
* Real Estate Sector Average
Performance Comparison
CTO
CTO Realty Growth
16.72
-1.06
-5.96%
GOOD
Gladstone Commercial
13.38
-0.18
-1.33%
OLP
One Liberty Properties
23.36
0.32
1.39%
AHH
Armada Hoffler Properties
7.22
-3.27
-31.17%
BRSP
BrightSpire Capital
5.59
0.61
12.25%
PKST
Peakstone Realty Trust
12.36
1.46
13.39%
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.
The most recent analyst rating on (CTO) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on CTO Realty Growth stock, see the CTO Stock Forecast page.
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.
The most recent analyst rating on (CTO) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on CTO Realty Growth stock, see the CTO Stock Forecast page.
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.