3 Small Cap REITs With Big Yields

Core Viewpoint - The article highlights three small-cap REITs that are expected to deliver solid total returns through dividends and capital appreciation, focusing on their financial performance and market positioning. Group 1: CTO Realty Growth (CTO) - CTO Realty Growth is a Florida-based REIT with a market cap of approximately $443.2 million and a portfolio of 20 properties totaling 3.9 million square feet, achieving 93% occupancy and generating $81.1 million in annualized base rent (ABR) in 2024 [4][7]. - The company targets business-friendly markets, primarily in the Southeast and Southwest regions, with Atlanta being its largest market, contributing 36% of its portfolio [4][5]. - For Q2 2024, CTO reported total revenue of $28.8 million, a 10.8% increase from $26.0 million in Q2 2023, with Core FFO of $10.4 million ($0.45 per share), reflecting a 7.8% year-over-year increase [7]. - The company raised its 2024 Core FFO guidance to a range of $1.81 to $1.86 per share, indicating a 12% increase at the midpoint [8]. Group 2: Alpine Income Property Trust (PINE) - PINE is a net lease REIT externally managed by CTO, with a portfolio of 137 properties totaling 3.8 million square feet across 34 states, and an ABR of $39.8 million as of Q2 2024 [10][11]. - The company has improved tenant diversity, with 67% of its ABR derived from investment-grade tenants, and reported a current occupancy rate of 99.1% [11][12]. - PINE's AFFO is expected to grow by almost 9% in 2024, while it trades at a lower multiple compared to peers, with a current P/AFFO of 10.99x [13][18]. Group 3: Broadstone Net Lease (BNL) - BNL specializes in single-tenant commercial properties, with a market cap of approximately $3.5 billion and a portfolio of 777 properties located in 44 states, achieving 99.3% occupancy [21][22]. - The company reported total revenue of $105.9 million in Q2 2024, a slight decrease from $109.4 million in Q2 2023, with Core FFO of $73.0 million ($0.37 per share) [24]. - BNL has an average AFFO growth rate of 1.32% since 2021, with a projected increase of 1% in 2024, and currently pays a 6.57% dividend yield [25].