CTO Realty Growth's Financial Journey and Future Prospects

CTO Realty Growth's Impressive 2024 Financial Performance

CTO Realty Growth, Inc. (NYSE: CTO) recently reported remarkable operational achievements for the quarter and year ending December 31, 2024, demonstrating solid growth and strategic investments.

Highlights of Closed Investments

The company completed investments totaling $330.8 million during 2024, achieving a weighted average initial cash yield of 9.3%. This impressive performance reflects the company's dedication to enhancing its portfolio in growing markets.

Strong Liquidity Position

CTO Realty Growth concluded the year with a robust liquidity of approximately $222 million, bolstered by successfully raising $165.2 million through its common ATM program. This capital position supports continued growth and enhances its ability to respond to market opportunities.

Fourth Quarter 2024 Performance Metrics

In the fourth quarter of 2024, the company experienced a net loss per diluted share of $(0.56), alongside a core funds from operations (Core FFO) of $0.46 per diluted share. Adjusted funds from operations (AFFO) reached $0.49 per diluted share. The company raised an additional $33 million under its common stock ATM offering for this quarter.

Year 2024 Summary and Growth Indicators

For the full year, CTO reported a net loss attributable to common stockholders of $(0.35) per diluted share, with a Core FFO of $1.88 and an AFFO of $2.00 per diluted share. Notably, the company sold two properties for $38 million, marking a strategic move in their asset management.

Leasing Activity and Growing Pipeline

In 2024, CTO signed 70 leases amounting to over 452,000 square feet, with an average cash base rent rise of 23% to $23.36 per square foot. The potential of the current signed-not-open leasing pipeline, valued at $5.2 million, also signals strong future profitability.

Investment and Disposition Strategies

CTO Realty Growth invested $57 million during the final quarter, including key acquisitions such as a Publix-anchored shopping center and structured loans, contributing to a weighted average initial yield of 10.2% for 2024. Selling two properties generated aggregate gains, further strengthening financial health.

Capital Market Activities

Throughout 2024, the company successfully executed significant equity issuances under its common stock ATM program, generating substantial proceeds to fund ongoing and future investments.

Dividends Announced

For the first quarter of 2025, CTO Realty Growth declared a quarterly cash dividend of $0.38 per share of common stock, translating to an impressive annualized yield of approximately 7.5% based on recent market price.

Looking Forward: 2025 Projections

CTO's outlook for 2025 emphasizes a focus on expanding investments in high-quality properties with anticipated total investments ranging from $100 to $200 million. Furthermore, the company forecasts steady growth in Same-Property NOI along with continued operational efficiencies.

Frequently Asked Questions

What is the main focus of CTO Realty Growth, Inc.?

CTO Realty Growth specializes in owning and operating retail-based properties within the United States, concentrated in high-growth markets.

What were the highlights of CTO's financial performance in 2024?

Highlights include $330.8 million in closed investments and a Core FFO of $1.88 per share.

How does CTO support its future growth?

The company supports growth through strategic investments and maintaining a strong liquidity position of $222 million.

What investment strategies does CTO employ?

CTO focuses on acquiring high-quality properties and has an extensive pipeline of leasing opportunities alongside strategic dispositions.

When will dividends be paid to CTO shareholders?

The announced quarterly cash dividend of $0.38 per share will be paid on March 31, 2025, for shareholders on record as of March 13, 2025.

About The Author

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