CTO Realty Growth (CTO, Financial) experienced a 5% decline in its stock price after a short call was issued by Wolfpack. This move comes as investors respond to the analysis provided by Wolfpack, which appears to have created some uncertainty around the company's performance.
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 $21.71 with a high estimate of $23.00 and a low estimate of $19.00. The average target implies an upside of 25.44% from the current price of $17.31. More detailed estimate data can be found on the CTO Realty Growth Inc (CTO) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, CTO Realty Growth Inc's (CTO, Financial) average brokerage recommendation is currently 1.5, indicating "Buy" 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 $19.14, suggesting a upside of 10.57% from the current price of $17.31. 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: May 02, 2025
- Investment Activity: Acquired Ashley Park for $79.8 million.
- Leasing Activity: Signed over 112,000 square feet of new leases, renewals, and extensions at an average rent of $24.14 per square foot.
- Portfolio Occupancy: 93.8% leased and 91% occupied at quarter end.
- Debt: Approximately $604 million of debt, with $120 million subject to floating interest rates.
- Convertible Notes: Retired 3.875% convertible notes for approximately $71.2 million.
- Core FFO: $14.4 million for the first quarter, up from $10.7 million in the first quarter of 2024.
- Core FFO Per Share: $0.46 in Q1 2025 compared to $0.48 in Q1 2024.
- Net Debt to EBITDA: 6.6 times at quarter end.
- Liquidity: Almost $140 million at quarter end.
- Full Year 2025 Guidance: Core FFO of $1.80 to $1.86 and AFFO of $1.93 to $1.98.
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 strong quarter driven by investment volume and leasing activity.
- The acquisition of Ashley Park for $79.8 million is expected to provide significant growth opportunities due to its lease-up potential and below-market rents.
- CTO signed over 112,000 square feet of new leases, renewals, and extensions at an average rent significantly higher than the in-place portfolio average.
- The company has a strong pipeline of potential acquisitions across target growth markets in the Southeast and Southwest.
- CTO's portfolio was 93.8% leased and 91% occupied at the end of the quarter, with a signed leasing pipeline representing 4% of cash rents.
Negative Points
- CTO Realty Growth Inc (CTO) has a net debt to EBITDA ratio of 6.6 times, slightly elevated due to recent acquisitions.
- The company faces a $20.5 million charge related to the extinguishment of debt, which will be recorded in the second quarter.
- Core FFO per share decreased from $0.48 in Q1 2024 to $0.46 in Q1 2025, primarily due to reduced leverage and downtime associated with re-leasing anchor spaces.
- The company is dealing with the aftermath of several tenants filing for bankruptcy, impacting earnings and requiring significant re-leasing efforts.
- CTO anticipates spending $9 to $12 million on capital expenditures related to re-leasing bankrupt tenant spaces.
