Investors in CTO Realty Growth, Inc. (CTO) need to pay close attention to the stock based on moves in the options market lately. That is because the May 16, 2025 $2.50 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could ...

WINTER PARK, Fla., April 03, 2025 (GLOBE NEWSWIRE) -- CTO Realty Growth, Inc. (NYSE: CTO) (the “Company” or “CTO”) announced today that the Company entered into privately negotiated exchange agreements with certain holders of its 3.875% Convertible Senior Notes due April 15, 2025 (the “Notes”). Prior to the exchange agreements, the Notes had an aggregate principal amount of $51.0 million, representing approximately 3.8 million underlying shares based on the current conversion ratio of 73.8112 shares of CTO ...

WINTER PARK, Fla., March 27, 2025 (GLOBE NEWSWIRE) -- CTO Realty Growth (NYSE: CTO) (the “Company”) announced today that it will report its financial and operating results for the first quarter of 2025 after the market closes on Thursday, May 1, 2025. A conference call to discuss its financial and operating results is scheduled for Friday, May 2, 2025 at 9:00 AM ET. A live webcast of the call will be available on the Investor Relations page of the Company’s website at www.ctoreit.com or at the link provided ...

Core Viewpoint - CTO Realty Growth, Inc. experienced a 7% stock drop despite strong earnings due to a miss in AFFO/share guidance for 2025, which is expected to be between $1.93 and $1.98, falling short of consensus estimates of $2.01 [1][4][6] Financial Performance - The company reported a core FFO per diluted share guidance range of $1.80 to $1.86 and an AFFO per diluted share guidance of $1.93 to $1.98 for 2025 [5][6] - The 2025 guidance reflects a 6 cent miss at the midpoint, indicating negative growth [6] Leasing Activity - CTO has signed 70 new leases in 2024, covering 452,301 square feet, with new leases at 75% higher rent than expiring leases [14][16] - The company has $5.2 million in annual base rent from signed but not yet opened leases, contributing 16 cents per share in AFFO accretion expected to impact earnings primarily in 2026 [12][13] Tenant Bankruptcies - The company is proactively regaining spaces from bankrupt tenants, with potential re-leasing spreads estimated between 40% and 60% [21][23] - The former leases of bankrupt tenants represented about $2.8 million in annual base rent, equating to approximately 9 cents per share in lost revenue for 2025 [21][23] Market Dynamics - CTO's properties are located in high-growth Sunbelt markets, which have seen virtually no new net supply of shopping centers since 2009, leading to higher occupancy and rental rates [29][30] - The average catchment area for CTO's shopping centers has 203,000 people with an average household income of $143,000, making them attractive to retailers [30] Future Outlook - The stabilized run-rate AFFO/share is projected at $2.24, exceeding the 2026 consensus estimate of $2.11, driven by strong leasing activity and market conditions [25] - The market price of $18.85 is considered undervalued given the expected growth in AFFO as lease commencements occur [31]

Group 1 - The focus is on growth and dividend income as a strategy for retirement planning [1] - The portfolio is structured to generate monthly dividend income that grows through reinvestment and annual increases [1] Group 2 - The article expresses personal opinions and is not intended as investment advice [2][3] - It emphasizes the importance of conducting individual research before making investment decisions [2]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The current market uncertainty has led to a decline in the valuation of previously high-performing stocks, highlighting the risks of investing solely for capital gains [2] - The investment strategy emphasizes defensive stocks with a medium- to long-term horizon, which may offer more stability in volatile markets [2] Group 2 - The article does not provide specific financial advice or recommendations, encouraging readers to conduct their own due diligence before making investment decisions [4][5]

Group 1: Acquisition Details - CTO Realty Growth, Inc. announced the acquisition of Ashley Park in Atlanta, GA, for $79.8 million, enhancing its presence in its largest market [1] - The lifestyle center spans 559,000 square feet and is located on 60 acres in the Newnan submarket, benefiting from a prime location along I-85, attracting over 6 million annual visits with 93% occupancy [2] Group 2: Strategic Importance - Approximately 82% of CTO's annual base rent is derived from assets in Georgia, Florida, Texas, or North Carolina, with Dick's Sporting Goods becoming the company's fifth largest tenant following this acquisition [3] - The acquisition expands CTO Realty's portfolio by 12%, increasing the total to 5.2 million square feet, and was purchased below replacement value with below-market rents, allowing for potential long-term value enhancement [4] Group 3: Financial Performance - CTO Realty completed $330.8 million of investments in 2024 at a weighted average initial cash yield of 9.3% [5] - The company signed 70 leases totaling 452,301 square feet in 2024, with an average cash base rent of $23.36 per square foot, reflecting a 23% increase from the previous average of $18.99 per square foot [6] Group 4: Market Context - Broader market concerns include potential shifts in trade policies that could worsen inflation and restrain consumer spending, which may lead the Federal Reserve to maintain high interest rates, adversely affecting interest-sensitive retail REITs [7] - Shares of CTO Realty have declined 2% over the past six months, slightly better than the real estate market's decline of 2.2% [7]

Core Viewpoint - CTO Realty Growth, Inc. has announced the acquisition of Ashley Park, a 559,000-square-foot lifestyle center in Atlanta, Georgia, for $79.8 million, enhancing its portfolio and operational synergies in key markets [1][2]. Group 1: Acquisition Details - The acquisition price of $79.8 million reflects a going-in cap rate near the high end of the company's current guidance range for initial cash yields [1]. - The acquisition increases the total portfolio by 12%, bringing it to 5.2 million square feet [1]. - Ashley Park is currently 93% occupied and is anchored by major retailers including Dick's Sporting Goods, Best Buy, Barnes & Noble, Regal, and Dillard's [2]. Group 2: Strategic Importance - The acquisition enhances the company's portfolio by adding a lifestyle shopping center in Atlanta, its largest market, and leverages local personnel for operational synergies [2]. - Approximately 82% of the company's annual base rent is now derived from assets located in Georgia, Florida, Texas, or North Carolina [2]. - Dick's Sporting Goods becomes the company's fifth largest tenant following this acquisition [2]. Group 3: Long-term Value Potential - The property was acquired below replacement cost with below-market rents, presenting an opportunity to unlock long-term value through strategic lease-up and mark-to-market rent opportunities [2].

Financial Data and Key Metrics Changes - The company reported core FFO of $1.88 per share for 2024, a 6% increase from $1.77 per share in 2023 [5][22] - FFO for Q4 2024 was $14.2 million, up from $10.8 million in Q4 2023, with core FFO at $0.46 per share compared to $0.48 per share in the same quarter of the previous year [22] - Total enterprise value rose by 33% to approximately $1.3 billion, with net debt to EBITDA improving to 6.3 times [10][19] Business Line Data and Key Metrics Changes - The company achieved a weighted average yield of 9.3% from $227 million in retail property acquisitions and $104 million in structured investments [6] - Leasing activity for the full year reached over 450,000 square feet at an average rent of $24.07 per square foot, with a positive cash lease spread of 23% [11] - The signed not open leasing pipeline represents almost 6% of in-place cash rents, with expected rent commencement weighted towards the second half of 2025 [12] Market Data and Key Metrics Changes - The company expanded its portfolio by 1 million square feet, a 26% increase, bringing the total to 4.7 million square feet [9] - The company completed its first investment in the Charlotte, North Carolina market while expanding in Orlando and Tampa [10] Company Strategy and Development Direction - The company plans to continue its acquisition strategy, anticipating one or two acquisitions in the near term [17] - The focus remains on high-quality investments with attractive yields, particularly in the Southeast and Southwest markets [6][17] - The company is negotiating with several anchor tenants for undeveloped land adjacent to its shopping center, targeting earnings contribution by late 2026 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong tenant demand for high-quality properties, despite recent retailer bankruptcies [13] - The company expects to recognize over 50% of the signed not open leasing pipeline in 2025, with full benefits in 2026 [12][25] - Management highlighted a robust acquisition pipeline and the potential for significant earnings growth in 2026 [16][17] Other Important Information - The company raised net proceeds of $33 million in Q4 2024, totaling $165 million for the year, which represents over 40% of its common equity market capitalization at the beginning of 2024 [19] - The company plans to settle its convertible notes in cash, with a potential impact of approximately $0.05 per share in 2025 [24] Q&A Session Summary Question: Clarification on convertible notes settlement - The company intends to settle the convertible notes in cash, with no expectation of share issuance [28] Question: Guidance on 2025 acquisitions and structured investments - Currently, the focus is on core acquisition opportunities, with structured investments expected later in the year [32] Question: NOI guidance and trends - NOI is expected to trend evenly, with potential increases in the fourth quarter [34] Question: Timing of rent commencement for new leases - Most new leases are expected to commence in the first half of 2026, with some potentially delayed [68] Question: Performance of AMCs and tenant interest - AMCs are performing well, and the company is optimistic about tenant interest in new spaces [48][72] Question: CapEx impact on 2025 outlook - The CapEx outlook for 2025 includes an incremental $9 million to $12 million, impacting the overall spread [78] Question: Market conditions for acquisitions - The company is not seeing significant acquisition opportunities due to recent retailer bankruptcies, but expects large trades to emerge [106] Question: Outlook for 2025 lease expirations - The company anticipates positive rent trends with no roll-down situations [116]

February 2025 Fourth Quarter 2024 Investor Presentation Ashford Lane | Atlanta, GA Highlights FY 2024 Highlights | 26% | Square feet year-over-year growth | | --- | --- | | $331mm | Investment activity 1 | | 33% | Total enterprise value year-over-year growth | | $231 | Implied property value per square foot | | ~452,000 | Square feet of leasing activity | | 23% | Comparable leasing spread | | 81% | ABR from Georgia, Texas, Florida & North Carolina | | ~203,000 | Portfolio 5-mile population | | 6.3x | Net De ...