jetcityimage/iStock Editorial via Getty Images CTO Realty Growth (NYSE:CTO) has been a quiet juggernaut in the retail REIT space, up 18% on a total return basis year-to-date and last declaring a quarterly cash dividend of $0.38 per share, unchanged from the prior period and $1.52 per share for an 8% annualized dividend yield. I last overed the REIT in May, when there was still material uncertainty around when the Fed would start paring bock interest rates. Market confidence around the start of rate cuts has ...

CTO Realty (CTO) shares ended the last trading session 8.4% higher at $21.15. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.4% gain over the past four weeks. The increased investor optimism in the stock can be attributed to the favorable operating environment. This real estate company is expected to post quarterly funds from operation (FFO) of $0.47 per share in its upcoming report, which represents a year-over ...

Margarita-Young Investment Thesis CTO Realty Growth (NYSE:CTO) trades at a discount to peers because of near-term debt coming due as early as 2026, which, I believe, has made other investors avoid the company. In my view, this has created a buying opportunity for investors as the Series A preferred offering in April shows that the company has a low cost of capital and, with interest rates dropping, should be able to refinance at similar rates to existing debt instruments. With a decent quality portfolio of ...

CTO Realty (CTO) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. Since a changi ...

pepifoto REITs overwhelmingly trade on Adjusted Funds From Operations or AFFO. REITs with strong AFFO/share growth over the past 5 years tend to trade at high multiples and those with low or negative AFFO/share growth trade at low multiples. While higher AFFO is of course better, our analysis suggests the market is too focused on the raw numbers and is missing the underlying quality. AFFO comes from 18 buckets, each of which has decidedly different implications for the quality of earnings. This article will ...

WINTER PARK, Fla., Aug. 21, 2024 (GLOBE NEWSWIRE) -- CTO Realty Growth, Inc. (NYSE: CTO) (the "Company" or "CTO") today announced closing the acquisition of a portfolio of three open-air shopping centers (the "Three Property Portfolio") for a purchase price of $137.5 million. The Three Property Portfolio consists of Carolina Pavilion in Charlotte, North Carolina; Millenia Crossing in Orlando, Florida; and Lake Brandon Village in Tampa, Florda. Additionally, on August 15, 2024, the Company closed the sale of ...

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]