CTO Realty Growth (CTO, Financial) announced first-quarter revenue of $35.81 million, surpassing the market forecast of $34.91 million. The company attributed this achievement to its strategic execution and robust performance across its portfolio.
A significant highlight during the quarter was the acquisition of Ashley Park, a 559,000-square-foot lifestyle center in the Newnan area of Atlanta, Georgia. CTO purchased the property for $79.8 million, achieving a yield at the upper end of its guidance range. The company's solid operating fundamentals are further evidenced by positive leasing spreads and a strong leasing pipeline.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for CTO Realty Growth Inc (CTO, Financial) is $22.14 with a high estimate of $24.00 and a low estimate of $19.00. The average target implies an upside of 22.34% from the current price of $18.10. More detailed estimate data can be found on the CTO Realty Growth Inc (CTO) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, CTO Realty Growth Inc's (CTO, Financial) average brokerage recommendation is currently 1.6, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for CTO Realty Growth Inc (CTO, Financial) in one year is $19.56, suggesting a upside of 8.07% from the current price of $18.1. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the CTO Realty Growth Inc (CTO) Summary page.
CTO Key Business Developments
Release Date: February 21, 2025
- Core FFO (Funds From Operations): $1.88 per share for 2024, a 6% increase from 2023.
- Investment Activity: $331 million in 2024, with a weighted average yield of 9.3%.
- Portfolio Growth: Increased by 1 million square feet or 26% to 4.7 million square feet.
- Total Enterprise Value: Increased by 33% to approximately $1.3 billion.
- Liquidity: Over $200 million at the end of 2024.
- Leasing Activity: 450,000 square feet for the full year 2024 at an average rent of $24.07 per square foot.
- Comparable Lease Basis: 352,000 square feet signed in 2024 at a positive cash lease spread of 23%.
- ATM Program Proceeds: $165 million for the full year at a weighted average price of $18.79 per share.
- Net Debt to EBITDA: Improved to 6.3x by the end of 2024.
- Fourth Quarter Core FFO: $14.2 million, a $3.3 million increase from Q4 2023.
- 2025 Core FFO Guidance: Range of $1.80 to $1.86 per share.
- 2025 AFFO Guidance: Range of $1.93 to $1.98 per share.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- CTO Realty Growth Inc (CTO, Financial) reported a record high core FFO of $1.88 per share for 2024, marking a 6% growth from 2023.
- The company completed $331 million of investments in 2024, with a weighted average yield of 9.3%, expanding its portfolio by 1 million square feet or 26%.
- CTO Realty Growth Inc (CTO) ended 2024 with a significantly reduced leverage and over $200 million of liquidity, enhancing its financial stability.
- The company signed over 450,000 square feet of new leases, renewals, and extensions in 2024, with a positive cash lease spread of 23%.
- CTO Realty Growth Inc (CTO) has a robust acquisition pipeline and anticipates closing one or two acquisitions in the near term, indicating continued growth potential.
Negative Points
- CTO Realty Growth Inc (CTO) faces potential challenges with retailer bankruptcies, impacting spaces previously occupied by Big Lots, Party City, and American Freight.
- The company anticipates a $0.10 per share impact in 2025 related to spaces affected by recent retailer bankruptcies.
- CTO Realty Growth Inc (CTO) has a debt maturity in 2025, with convertible notes amounting to $51 million, which may affect cash flow.
- The company's guidance for 2025 indicates a potential decrease in core FFO per share, ranging from $1.80 to $1.86, compared to 2024.
- CTO Realty Growth Inc (CTO) expects some delays in rent commencement from new tenants due to the time required for permits and build-outs, impacting short-term revenue.
