WINTER PARK, Fla., Aug. 20, 2024 (GLOBE NEWSWIRE) -- CTO Realty Growth, Inc. (NYSE: CTO) (the "Company" or "CTO") announced today that its Board of Directors has authorized, and the Company has declared, a quarterly cash dividend of $0.38 per share of common stock for the third quarter of 2024 (the "Common Stock Cash Dividend"). The Common Stock Cash Dividend represents an annualized yield of approximately 7.9% based on the closing price of the Company's common stock on August 19, 2024. The Common Stock Cas ...

MasaoTaira Summary Despite a quarter of subdued investment activity and a significant share price rally, we are still bullish on CTO Realty Growth (NYSE:CTO). In this report we cover CTO's Q2 earnings and provide an updated view on valuation for the common and preferred. Earnings Update There were no changes to the composition of the income producing portfolio, with no investments or dispositions during the quarter. Rents grew ~2% QoQ in the multitenant portfolio, and were unchanged in the single-tenant por ...

Core Insights - The U.S. real estate market is demonstrating remarkable resilience despite high mortgage rates, driven by a significant supply-demand imbalance and stringent lending standards [1][2] Group 1: Market Overview - High-yielding real estate stocks are seen as an effective investment strategy, providing stable dividend income and potential for capital appreciation [2] - The real estate market's strength is characterized by rising property prices and robust demand [1] Group 2: Company Highlights - **Cousins Properties (CUZ)** focuses on Class A office spaces in the Sun Belt, benefiting from economic growth in the region, with a stock value increase of 48% over the past nine months and a dividend yield of over 4.7% [3][5] - **Realty Income (O)**, known as the "Monthly Dividend Company," has a 98.6% occupancy rate and a dividend yield of 5.21%, with 26 consecutive years of dividend growth and a forward AFFO growth of 2.8% [6][7] - **CTO Realty Growth (CTO)** operates a diversified portfolio in the Sun Belt, recently securing new leases at an average rent of $27.12 per square foot, with a four-year average dividend yield of 12.91% [8][9][10]

The Buy Thesis - CTO Realty Growth (NYSE:CTO) is a retail-focused REIT with strong organic leasing prospects and is currently trading at a low multiple of 11X AFFO and a 7.5% dividend yield [1] Why CTO trades cheaply - Retail real estate is experiencing a renaissance, shifting from a feared asset class to a respected growth play, with increasing demand for space and rising market rental rates [2] - The diversified REIT sector, which includes many retail properties, trades at sharp discounts due to its association with office properties, leading to intentional reclassifications among REITs [2][4] Property portfolio and leasing prospects - As of Q2 2024, CTO's portfolio consists of 62.5% retail, 4.5% office, and 33% mixed-use properties, with a significant portion of retail properties benefiting from high job and population growth areas [5] - CTO reported a 41% leasing spread in the first half of 2024, with 128% increases on new leases and 5% increases on renewals [6][5] Balance sheet and interest expense - CTO has a debt to EBITDA ratio of 6.11X, which is above the average for REITs, but its interest expense is covered 3.6X by revenues, and most of its debt is at a low fixed rate of 4.23% [9][11] - The company faces refinancing risks as most of its debt matures in the next three years, with potential increases in interest expenses if market rates rise [10][11] Valuation - The estimated equity value per share for CTO is between $23.65 and $27.06, with a midpoint of over $25 per share, suggesting a fair value of $25.50 per share, representing a 27% upside from the current price of $20.03 [12][14] - CTO's AFFO/share guidance for the full year is $1.97, which would imply a 13X AFFO multiple, lower than the retail peers' average of 17X due to specific risks associated with the company [13][14] Overall Thesis - The properties and growth prospects of CTO are considered substantially stronger than what is implied by its low AFFO multiple, presenting a favorable risk-reward scenario for investors [16]

Company Overview - CTO Realty Growth (CTO) is undergoing a transformation with a focus on retail real estate, having reported strong leasing activity and impressive 2Q24 operating results [4][6] - The company has engaged in $1.2 billion of investment activity in acquiring new retail assets while disposing of $0.7 billion in non-core/non-retail assets [6] Financial Performance - CTO's 2024 AFFO per share guidance is set at $1.975, which positions the company at a 9.93x multiple, significantly lower than the retail REIT peer average of 14.4x [6] - The stock price increased over 12% in July due to a favorable market view of REITs [6] Preferred Shares - The Series A preferred shares (CTO.PR.A) offer a fixed 6.375% coupon, resulting in annual dividend payments of $1.59375, yielding 7.59% against a backdrop of rising interest rates [7][11] - The anticipated decline in Fed Funds Rate could lead to increased demand for yield, potentially driving up the price of CTO.PR.A shares [12][13] Investment Opportunity - The current pricing of CTO.PR.A shares presents an opportunity for capital appreciation, with potential gains of $4 per share (+19%) if interest rates decline significantly [13] - The strong performance in retail real estate leasing trends supports a positive outlook for CTO, making it an attractive option for fixed-income portfolios [14]

CTO Realty Growth, Inc. (NYSE:CTO) Q2 2024 Earnings Conference Call July 26, 2024 9:00 AM ET Company Participants John Albright - Chief Executive Officer and President Philip Mays - Senior Vice President, Chief Financial Officer and Treasurer Conference Call Participants R.J. Milligan - Raymond James Gopal Mehta - Alliance Global Partners Rob Stevenson - Janney Montgomery and Scott Matthew Erdner - Jones Trading John Massocca - B. Riley Securities Michael Gorman - BTIG Operator Good day, and thank you for s ...

| --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|----------------------------------------|-------|-------|------------------------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | _REALTY GROWTH Investor Presentation - | | | | | | | | July 2024 | | | | | | | | | | | The Collection at Forsyth \| Cumming, GA | $37M Small-cap shopping center REIT focused on open air centers in fast growing MSAs in the Southeast and Southwest Investment in Alpine Income Property Tru ...

CTO Realty (CTO) came out with quarterly funds from operations (FFO) of $0.48 per share, beating the Zacks Consensus Estimate of $0.43 per share. This compares to FFO of $0.48 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an FFO surprise of 11.63%. A quarter ago, it was expected that this real estate company would post FFO of $0.42 per share when it actually produced FFO of $0.52, delivering a surprise of 23.81%. Over the last four quarters, the c ...

WINTER PARK, Fla., July 25, 2024 (GLOBE NEWSWIRE) -- CTO Realty Growth, Inc. (NYSE:CTO) (the "Company" or "CTO") today announced its operating results and earnings for the quarter ended June 30, 2024. CEO Comments June 30, 2023 Variance to Comparable Period in the Prior Year Common Stockholders per Common Share - Diluted (2) (1) (2) Year-to-Date Financial Results Highlights | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |------------------------------------------------------------------------ ...

Investments During the three months ended June 30, 2024, the Company invested $1.5 million into 1.4 acres of land for future development within the West Broad Village property, which was previously acquired in October of 2022. During the six months ended June 30, 2024, the Company invested $72.5 million into two retail properties totaling 319,066 square feet and one vacant land parcel, and originated one $10.0 million first mortgage structured investment. These investments represent a weighted average going ...