On February 20, 2025, CTO Realty Growth Inc (CTO, Financial) released its 8-K filing detailing its financial results for the fourth quarter and full year of 2024. CTO Realty Growth Inc, a Florida-based real estate investment trust, manages a diverse portfolio of income properties across the United States, including income properties, management services, and commercial loans and investments.
Performance Overview and Challenges
CTO Realty Growth Inc reported a net loss per diluted share of $(0.56) for the fourth quarter, which is below the analyst estimate of $0.01. The company also reported a net loss per diluted share of $(0.35) for the full year. Despite these losses, the company achieved a record high Core Funds from Operations (Core FFO) of $1.88 per share for the year. The company's performance is crucial as it reflects the challenges faced in the real estate market, including economic fluctuations and tenant solvency issues.
Financial Achievements and Industry Impact
CTO Realty Growth Inc closed investments totaling $330.8 million in 2024, with a weighted average initial cash yield of 9.3%. This strategic investment is significant for a REIT, as it enhances the company's income-generating potential and supports future growth. Additionally, the company raised $165.2 million through its common stock ATM program, ending the year with $222 million in liquidity, which is vital for sustaining operations and funding new opportunities.
Key Financial Metrics
The company's Core FFO per diluted share was $0.46 for the fourth quarter, slightly below the previous year's $0.48. Adjusted Funds from Operations (AFFO) per diluted share was $0.49, compared to $0.52 in the prior year. These metrics are essential for evaluating the company's ability to generate cash flow and support dividend payments.
| Metric | Q4 2024 | Q4 2023 | Variance |
|---|---|---|---|
| Net Income (Loss) Attributable to Common Stockholders | $(17,095) | $5,850 | $(22,945) |
| Core FFO per Common Share - Diluted | $0.46 | $0.48 | $(0.02) |
| AFFO per Common Share - Diluted | $0.49 | $0.52 | $(0.03) |
Analysis and Commentary
Despite the reported net losses, CTO Realty Growth Inc's strategic investments and capital raising efforts demonstrate a proactive approach to navigating market challenges. The company's focus on high-yield investments and maintaining liquidity positions it well for future growth. As John P. Albright, President and CEO, stated,
2024 was an outstanding year for the Company. We closed $331 million of investments at a weighted average yield of 9.3% and produced record high Core FFO of $1.88 per share."
Conclusion
CTO Realty Growth Inc's financial results highlight both the challenges and opportunities within the real estate investment trust sector. While the company missed analyst EPS estimates, its strategic investments and strong liquidity position underscore its potential for future growth. Investors and analysts will be closely monitoring the company's performance as it continues to navigate the evolving market landscape.
Explore the complete 8-K earnings release (here) from CTO Realty Growth Inc for further details.
