Financial Data and Key Metrics Changes - The company reported a Core FFO of $14.4 million for Q1 2025, an increase of $3.7 million compared to $10.7 million in Q1 2024 [14] - On a per share basis, Core FFO was $0.46 in Q1 2025, down from $0.48 in Q1 2024, primarily due to reduced leverage and downtime from re-leasing anchor spaces [15] - The net debt to EBITDA ratio was 6.6 times at quarter end, slightly elevated from the previous quarter but a full turn lower than one year ago [14] Business Line Data and Key Metrics Changes - The company signed over 112,000 square feet of new leases, renewals, and extensions at an average rent of $24.14 per square foot, nearly 25% higher than the in-place portfolio average of $19.41 per square foot [7] - The portfolio was 93.8% leased and 91% occupied at quarter end [8] Market Data and Key Metrics Changes - The company acquired Ashley Park for $79.8 million, with a cash cap rate near the high end of guidance, indicating strong market interest [5] - The company has a signed not open leasing pipeline of $4 million in annual base rent, representing 4% of cash rents at quarter end [9] Company Strategy and Development Direction - The company continues to focus on acquiring properties in the Southeast and Southwest, with a strong pipeline of potential acquisitions [6] - The company is optimistic about re-leasing opportunities for 10 anchor spaces previously leased to tenants that filed for bankruptcy, expecting a positive cash leasing spread of 40% to 60% [8] Management's Comments on Operating Environment and Future Outlook - Management noted that leasing activity remains strong despite recent tariff uncertainties, with a well-diversified tenant base [9] - The company reaffirmed its full-year 2025 guidance for Core FFO per share of $1.80 to $1.86 and AFFO of $1.93 to $1.98 [16] Other Important Information - The company executed two SOFR swaps, fixing SOFR for $100 million of principal at a weighted average rate of 3.32% for five years, reducing the applicable interest rate significantly [11] - The company extinguished its 3.875% convertible notes for approximately $71.2 million, resulting in a debt extinguishment charge of about $20.5 million to be recorded in Q2 [13] Q&A Session Summary Question: Can you provide more detail on the anchor space negotiations? - Management indicated that leasing activity has been consistent and strong, with no pauses in discussions despite market volatility [21] Question: What drove the new lease spreads? - The new lease spreads were primarily driven by two significant leases that accounted for a large portion of the new leasing activity, resulting in spreads over 80% [23] Question: How much CapEx is required for the bankrupt tenant spaces? - The expected CapEx for re-leasing is in the range of $9 million to $12 million, covering all landlord work and commissions [30] Question: What is the expected timeframe for tenants to start paying rent after signing a lease? - A safe estimate for rent commencement is around one year, although some tenants may move in more quickly [31] Question: How does the company plan to fund new investments? - The company plans to handle funding internally with existing liquidity and is considering selling its remaining office property towards the end of the year [32] Question: Have cap rates changed since the tariff announcement? - There has been no increase in cap rates for traditional core assets, with the market remaining strong for retail shopping centers [50] Question: What is the mark-to-market upside for the Ashley Park acquisition? - The company sees opportunities for a mark-to-market upside of 10% to 20% for the Ashley Park acquisition, with significant leasing potential [58] Question: How much of the CapEx has already been spent? - Very little of the CapEx has been spent so far, as tenants need to complete their work before reimbursements begin [59] Question: Is the investment pipeline still primarily core property investments? - The company is starting to see more diverse investment opportunities and is excited about potential activity in the coming months [63]

Core Insights - CTO Realty reported $35.81 million in revenue for Q1 2025, a year-over-year increase of 27.3% [1] - The earnings per share (EPS) for the same period was $0.49, compared to $0.20 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $34.91 million by 2.58% [1] - The EPS also surpassed the consensus estimate of $0.48 by 2.08% [1] Revenue Breakdown - Interest Income from Commercial Loan and Investments was $2.96 million, exceeding the estimated $2.72 million [4] - Management Fee Income was $1.18 million, slightly above the estimated $1.14 million, representing a 6.6% increase compared to the previous year [4] - Net Earnings per Share (Diluted) was $0.01, significantly better than the estimated -$0.49 [4] Stock Performance - CTO Realty shares have returned -6% over the past month, while the Zacks S&P 500 composite has changed by -0.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

CTO Realty (CTO) came out with quarterly funds from operations (FFO) of $0.49 per share, beating the Zacks Consensus Estimate of $0.48 per share. This compares to FFO of $0.52 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of 2.08%. A quarter ago, it was expected that this real estate company would post FFO of $0.48 per share when it actually produced FFO of $0.49, delivering a surprise of 2.08%.Over the last four quarters, the compa ...

Financial Highlights - Investment activity reached $80 million[4] - Implied property value per square foot is $225[4,16] - Same-Property NOI quarter-over-quarter growth is 2.4%[4] - Net Debt to Pro Forma Adjusted EBITDA is 6.6x[4,60] Portfolio Overview - Portfolio square footage is 5.2 million[7] - 83% of the portfolio's ABR (Annualized Base Rent) comes from Georgia, Texas, Florida & North Carolina[4,11] - Grocery-Anchored Retail accounts for 20% of the portfolio's asset type[14] - The portfolio's 5-mile population is approximately 191,000[4,15] Leasing Activity - Comparable leasing spread is 37%[4,16,22]

Revenue Performance - Total revenue for Q1 2025 increased to $35.8 million, a 27.3% increase from $28.1 million in Q1 2024, primarily due to increased income from recent property acquisitions and same-store revenue growth [202]. - Revenue from income properties was $31.7 million in Q1 2025, up 28.6% from $24.6 million in Q1 2024, with operating income rising to $22.8 million from $17.8 million [203]. - Interest income from commercial loans and investments reached $3.0 million in Q1 2025, a 119.2% increase from $1.4 million in Q1 2024, driven by new loan originations [205]. Portfolio and Investment Strategy - The current portfolio consists of 18 multi-tenant properties generating $98.3 million in annualized revenue and 6 single-tenant properties generating $5.4 million, both with a weighted average remaining lease term of 4.9 years [199]. - The company focuses on investing in high-quality retail and mixed-use properties in fast-growing, business-friendly markets [191]. - The investment strategy includes a continual review of the existing income property portfolio to identify opportunities for capital recycling based on performance and market conditions [198]. Expenses and Income - Total general and administrative expenses increased by 11.1% to $4.683 million for the three months ended March 31, 2025, compared to $4.216 million in the same period of 2024 [207]. - Depreciation and amortization rose by $3.4 million to $14.3 million for the three months ended March 31, 2025, driven by growth in the income property portfolio [209]. - Net income attributable to the company decreased by $3.5 million to $2.3 million for the three months ended March 31, 2025, primarily due to the absence of gains on asset dispositions [216]. Cash Flows - Cash flows provided by operating activities totaled $10.3 million for the three months ended March 31, 2025, down from $11.8 million in the same period of 2024, a decrease of $1.5 million [218]. - Cash flows used in investing activities increased by $28.6 million to $80.6 million for the three months ended March 31, 2025, compared to $52.0 million in 2024, due to decreased disposition activity [219]. - Cash flows provided by financing activities increased by $31.1 million to $68.3 million for the three months ended March 31, 2025, compared to $37.2 million in 2024 [220]. Acquisitions and Future Investments - The company acquired one multi-tenant income property for $79.5 million during the three months ended March 31, 2025, compared to $71.0 million for acquisitions in the same period of 2024 [222]. - The company expects 2025 investments in income-producing properties to range from $100.0 million to $200.0 million [223]. Shareholder Returns - The company declared and paid dividends of $0.40 for preferred stock and $0.38 for common stock, consistent with the previous year [238]. - Funds from operations (FFO) attributable to common stockholders increased to $14.894 million, up 37.5% from $10.797 million year-over-year [242]. - Adjusted funds from operations (AFFO) attributable to common stockholders rose to $15.521 million, a 33.1% increase compared to $11.648 million in the prior year [242].

Financial Performance - Net income attributable to common stockholders was $0.01 per diluted share, a decrease of 95.0% compared to the prior year[5][6] - Core Funds from Operations (FFO) attributable to common stockholders increased by 34.5% to $14.4 million, or $0.46 per diluted share[5][6] - Adjusted Funds from Operations (AFFO) attributable to common stockholders rose by 33.3% to $15.5 million, or $0.49 per diluted share[5][6] - Same-Property Net Operating Income (NOI) totaled $17.1 million, reflecting a 2.4% increase from the prior year[5][9] - Total revenues for the three months ended March 31, 2025, were $35,811,000, an increase of 27.3% compared to $28,127,000 for the same period in 2024[41] - Same-Property NOI for the three months ended March 31, 2025, was $17,136,000, up 2.4% from $16,727,000 for the same period in 2024[43] - Net income attributable to the Company for the three months ended March 31, 2025, was $2,261,000, a decrease of 61.3% compared to $5,842,000 for the same period in 2024[41] - The Company reported a basic net income attributable to common stockholders of $0.01 per share for the three months ended March 31, 2025, down from $0.21 per share for the same period in 2024[41] - Funds from operations (FFO) attributable to common stockholders increased to $14,894,000, up 38.5% from $10,797,000 year-over-year[46] - Core funds from operations attributable to common stockholders were $14,445,000, compared to $10,737,000 in the prior year, representing a 34.3% increase[46] Debt and Liquidity - As of March 31, 2025, the company had liquidity of $138.4 million, including $8.4 million in cash and $130.0 million of undrawn commitments on its Revolving Credit Facility[5][12] - The company's net debt to Pro Forma Adjusted EBITDA was 6.6 times, and the fixed charge coverage ratio was 2.9 times[12][13] - The total long-term debt as of March 31, 2025, was $603.8 million, with a weighted average interest rate of 4.35%[12][13] - Long-term debt increased to $602,216,000 as of March 31, 2025, compared to $518,993,000 as of December 31, 2024, reflecting a 15.9% increase[39] - Net debt stood at $595,406,000, with a net debt to pro forma adjusted EBITDA ratio of 6.6x[48] Investments and Acquisitions - The company acquired Ashley Park, a 559,000-square-foot lifestyle center in Atlanta, Georgia, for $79.8 million, achieving a going-in cap rate near the high end of guidance[3][7] - Investments planned for 2025 are estimated between $100.0 million and $200.0 million, with a weighted average initial cash yield of 8.0% to 8.5%[19] Guidance and Outlook - The Company reaffirmed its full-year Core FFO and AFFO guidance per diluted share attributable to common stockholders[5] - The Company's 2025 outlook for Core FFO per common share is projected to be between $1.80 and $1.86, while AFFO per common share is expected to range from $1.93 to $1.98[19] - Same-Property NOI growth is anticipated to be approximately 1% compared to the year ended December 31, 2024[19] - General and administrative expenses are projected to be between $17.5 million and $18.0 million for 2025[19] - The estimated Net Loss Attributable to the Company per common share for 2025 is projected to be between $(0.46) and $(0.40)[20] Dividends - A cash dividend of $0.38 per share for common stock was announced, representing a payout ratio of 82.6% of the first quarter 2025 Core FFO attributable to common stockholders[17] - The Company declared and paid dividends of $0.40 per share for preferred stock and $0.38 per share for common stock, consistent with the previous year[41] Operational Metrics - The Company aims to enhance its operating performance by focusing on Same-Property NOI as a key performance metric, which excludes the impact of property acquisitions or dispositions[37] - The Company operates a portfolio of retail-based properties primarily in higher growth markets in the United States[23] Other Financial Metrics - The Company utilized interest rate swaps on a total of $315.0 million across various term loans to fix SOFR, achieving fixed swap rates ranging from 1.27% to 3.85%[1][3][4][5][6] - The Company completed transactions to retire $35,208,000 of 2025 Notes in exchange for 1,089,555 shares of common stock and cash payments totaling $29.0 million[16] - Adjusted EBITDA for the three months ended March 31, 2025, was $21,181,000, with an annualized figure of $84,724,000[48] - Pro forma adjusted EBITDA, reflecting the impact of current quarter investments and dispositions, reached $89,593,000[49] - Interest income from commercial loans and investments increased to $2,961,000 for the three months ended March 31, 2025, compared to $1,351,000 for the same period in 2024, representing a 119.5% increase[41] - The company reported a depreciation and amortization of real estate totaling $14,346,000 for the quarter[46] - Unrealized loss on investment securities was $165,000, a significant decrease from $4,039,000 in the previous year[46] - Distributions to preferred stockholders increased to $1,878,000 from $1,187,000 year-over-year[46]

Core Insights - CTO Realty Growth, Inc. reported strong operational and financial results for Q1 2025, including the acquisition of a significant property and positive leasing activity [1][3][6] Financial Performance - Net income attributable to the company decreased to $2.261 million for Q1 2025, down 61.3% from $5.842 million in Q1 2024 [4][10] - Core Funds from Operations (FFO) attributable to common stockholders increased by 34.5% to $14.445 million, while Adjusted Funds from Operations (AFFO) rose by 33.3% to $15.521 million [4][5] - Same-Property Net Operating Income (NOI) totaled $17.1 million, reflecting a 2.4% increase from the prior year [5][10] Leasing Activity - The company signed 18 leases totaling 112,585 square feet, with a comparable cash rent growth of 37.2%, increasing from an average of $17.47 to $23.97 per square foot [11][12] - The current signed-not-open pipeline represents $4.0 million, or 4.0%, of annual cash base rent as of March 31, 2025 [5] Property Acquisition - CTO acquired Ashley Park, a 559,000-square-foot lifestyle center in Atlanta, Georgia, for $79.8 million, achieving a going-in cap rate at the high end of the company's guidance [3][6] Portfolio Overview - As of March 31, 2025, the company's portfolio consisted of 24 properties with a total of 5,246 thousand square feet and a weighted average remaining lease term of 4.9 years [7] - The portfolio's leased occupancy rate was reported at 93.8% [7] Capital Structure and Liquidity - The company had liquidity of $138.4 million as of March 31, 2025, with $130.0 million of undrawn commitments on its Revolving Credit Facility [5][13] - Total long-term debt amounted to $603.8 million, with a weighted average interest rate of 4.35% [14][15] 2025 Outlook - The company reaffirmed its Core FFO and AFFO guidance for 2025, projecting Core FFO per common share to be between $1.80 and $1.86, and AFFO per common share to be between $1.93 and $1.98 [20][21]

Group 1 - The investment approach has received over 500 five-star reviews from members who are experiencing benefits [1] - The company invests more than $100,000 annually and dedicates thousands of hours to research profitable real estate investment opportunities [1] Group 2 - Jussi Askola leads the High Yield Landlord investing group, providing real-time updates on his REIT portfolio and transactions [2] - The group offers features such as three distinct portfolios (core, retirement, international), buy/sell alerts, and a chat room for direct interaction with analysts [2] - Jussi Askola is the President of Leonberg Capital, a value-oriented investment firm that advises hedge funds and private equity on REIT investments [2]

Core Insights - Pearl Gray is a proprietary investment fund and independent market research firm specializing in systematic analysis, focusing primarily on Bonds, Investment Funds, and REITs, with a primary sector emphasis on Financials and Real Estate [1] Group 1 - The mission of Pearl Gray is to discover actionable total return ideas at the intersection of rigorous academic theories, practical experience, and common sense [1] - The firm emphasizes that its published content is independent analysis and does not constitute financial advice [1][2] - Analysts at Pearl Gray disclose that they have no stock, option, or similar derivative positions in any of the companies mentioned, nor do they plan to initiate any such positions within the next 72 hours [1] Group 2 - The content provided by Pearl Gray on platforms like Seeking Alpha is intended to set the tone for discussions among subscribers rather than serve as financial advice [2] - Seeking Alpha clarifies that past performance is not indicative of future results and that no recommendations are made regarding the suitability of investments for particular investors [3] - The analysts contributing to Seeking Alpha may include both professional and individual investors who may not be licensed or certified by any regulatory body [3]

Group 1 - The stock of CTO Realty Growth, Inc. (CTO) is experiencing significant attention due to high implied volatility in the options market, particularly for the May 16, 2025 $2.50 Call option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in the stock's price, potentially due to an upcoming event [2] - Analysts currently rate CTO Realty Growth as a Zacks Rank 3 (Hold), with no upward revisions in earnings estimates over the last 60 days, leading to a decrease in the Zacks Consensus Estimate from 51 cents to 50 cents per share [3] Group 2 - The high implied volatility for CTO Realty Growth may indicate a trading opportunity, as options traders often seek to sell premium on options with such volatility, aiming to benefit from time decay [4]