CTO Realty GrowthNYSE: CTO

- Closed $274 Million in Investments Year-To-Date - - Raised $126 Million Under ATM Program in Third Quarter - - Closed $100 Million Unsecured Term Loan - WINTER PARK, Fla., Sept. 30, 2024 (GLOBE NEWSWIRE) -- CTO Realty Growth, Inc. (NYSE: CTO) an owner and operator of high-quality, open-air shopping centers located in the higher growth Southeast and Southwest markets of the United States (the “Company”), today provided a business update for the third quarter and year-to-date ended September 30, 2024.

The Fed has initiated a rate-cutting cycle, reducing rates by 50 bps, with potential further cuts in November, setting a positive market outlook. The Dividend Harvesting Portfolio reached an all-time high, with a 24% return on invested capital, emphasizing diversification to mitigate downside risk. Dividend income continues to grow, with a forward projected annualized dividend income of $1,735.68, aiming to exceed $1,900 by year-end.

WINTER PARK, Fla., Sept. 25, 2024 (GLOBE NEWSWIRE) -- CTO Realty Growth (NYSE: CTO) (the “Company”) announced today that it will report its financial and operating results for the third quarter of 2024 after the market closes on Thursday, October 24, 2024. The Company will host a conference call to discuss its financial and operating results for the third quarter of 2024 at 9:00 AM ET on Friday, October 25, 2024.

DKL, CTO and VRN made it to the Zacks Rank #1 (Strong Buy) income stocks list on September 16, 2024.

CTO Realty Growth has kept its quarterly dividend stable and currently offers a fully covered 8% dividend yield. The retail REIT is trading at a price-to-free cash flow multiple of 9.71x, below its historical range. Fed rate cuts will deliver a huge boost to investor sentiment and the REIT's multiple.

CTO Realty (CTO) witnessed a jump in share price last session on above-average trading volume. The latest trend in FFO estimate revisions for the stock suggests that there could be more strength down the road.

CTO Realty Growth is undervalued due to near-term debt concerns, presenting a buying opportunity as refinancing at favorable rates is likely with dropping interest rates. The REIT's portfolio focuses on high-quality properties in growth markets, with strong economic fundamentals and long-term leases, enhancing stability and income potential. Q2'24 results exceeded expectations, with top line growth driven by new property acquisitions and improving occupancy rates, indicating strong operational performance.

CTO Realty (CTO) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

REITs trade on AFFO, but the market often overlooks the quality of AFFO growth, leading to mispricings. AFFO growth sources vary in quality; repeatable sources like rental rate growth are more valuable than one-time or cyclical gains. Capital structure changes like debt paydown and share buybacks can enhance AFFO quality by reducing risk and demonstrating management alignment.