CTO Realty Growth (CTO) AI Stock Analysis

• Market Cap: $606.99M
• Dividend Yield: 8.25%
• Average Volume (3M): 269.10K
• Price to Earnings (P/E): 36.9
• Beta (1Y): 0.45
• Revenue Growth: 17.48%
• EPS Growth: -172.41%
• Country: US
• Employees: 37
• Sector: Real Estate
• Sector Strength: 67
• Industry: REIT - Diversified
• EPS (TTM): 0.01
• Shares Outstanding: 32,934,715
• 10 Day Avg. Volume: 223,596
• 30 Day Avg. Volume: 269,099
• PEG Ratio: 1.08
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $22.33
• Price Target Upside: 21.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

CTO Realty Growth's overall stock score reflects solid revenue growth and strong cash flow performance, but is tempered by profitability challenges and negative earnings impacting valuation. Technical analysis shows neutral momentum, while the earnings call highlights strategic investments and leasing activities amidst tenant bankruptcy challenges. The attractive dividend yield offers some support to the stock, though profitability and debt management remain key concerns.

CTO Realty Growth Business Overview & Revenue Model

Company Description

CTO Realty Growth, Inc. is a Florida-based publicly traded real estate company, which owns income properties comprised of approximately 2.4 million square feet in diversified markets in the United States and an approximately 23.5% interest in Alpine Income Property Trust, Inc., a publicly traded net lease real estate investment trust (NYSE: PINE).

How the Company Makes Money

CTO Realty Growth makes money primarily through the acquisition and management of income-generating properties. The company earns revenue by leasing space in its portfolio of retail, office, and mixed-use properties to tenants, which provides a steady stream of rental income. Additionally, CTO Realty Growth may engage in property development or redevelopment projects, generating additional revenue through property sales or enhanced leasing opportunities. The company's revenue is also influenced by its strategic partnerships and joint ventures, which can provide access to new markets and investment opportunities. Overall, CTO Realty Growth aims to maximize shareholder value by efficiently managing its property portfolio and ensuring high occupancy rates.

CTO Realty Growth Financial Statement Overview

Summary

CTO Realty Growth shows strong revenue growth but faces profitability challenges due to a net loss in 2024. The balance sheet reveals moderate leverage with a stable equity position, although increased debt levels are a risk. Cash flow metrics are strong with significant improvements in operating and free cash flow.

Income Statement

CTO Realty Growth has shown a consistent increase in total revenue over the years, with a notable revenue growth rate of 14.09% from 2023 to 2024. However, the company reported a net loss in 2024, leading to a negative net profit margin of -7.05%. The EBIT margin remains positive at 14.14%, indicating operational efficiency, but the EBITDA margin is negative due to high depreciation and amortization expenses. Overall, the revenue growth is promising, but profitability issues impact the score.

Balance Sheet

The company's debt-to-equity ratio stands at 0.85, highlighting a moderate level of leverage. The return on equity has turned negative in 2024 due to net losses, indicating challenges in generating shareholder value. The equity ratio of 51.85% suggests a relatively balanced capital structure. While the balance sheet shows stability, the decrease in stockholders' equity and increased debt burden are concerns.

Cash Flow

CTO Realty Growth exhibited strong operating cash flow growth, with a significant increase from 2023 to 2024. The operating cash flow to net income ratio is robust, reflecting effective cash generation despite reported net losses. Free cash flow has improved significantly, showing a positive trajectory after previous deficits. The cash flow performance is strong, reflecting good liquidity management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
132.20M	124.52M	109.12M	82.32M	70.27M	56.38M
	Gross Profit
86.11M	91.30M	78.94M	59.46M	47.84M	41.17M
	EBIT
11.03M	17.61M	26.51M	17.71M	16.06M	12.28M
	EBITDA
40.50M	75.03M	71.70M	46.56M	36.64M	29.60M
	Net Income Common Stockholders
-5.55M	-1.97M	5.53M	3.16M	29.94M	78.51M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
47.93M	48.68M	49.66M	61.37M	49.65M	34.86M
	Total Assets
1.24B	1.18B	989.67M	986.54M	733.14M	665.93M
	Total Debt
0.00	534.41M	506.23M	496.25M	278.27M	273.06M
	Net Debt
611.42M	525.39M	496.01M	476.92M	269.66M	268.77M
	Total Liabilities
650.02M	568.85M	532.14M	481.77M	302.66M	315.03M
	Stockholders Equity
593.88M	612.80M	457.53M	504.77M	430.48M	350.90M
Cash Flow		Free Cash Flow
63.18M	69.35M	46.42M	-257.83M	-228.80M	-150.88M
	Operating Cash Flow
67.90M	69.35M	46.42M	56.10M	27.58M	16.93M
	Investing Cash Flow
-270.85M	-242.15M	-52.56M	-267.63M	-102.97M	-91.12M
	Financing Cash Flow
203.49M	172.35M	2.77M	201.38M	72.91M	-26.89M

CTO Realty Growth Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.43
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTO, the sentiment is Positive. The current price of 18.43 is above the 20-day moving average (MA) of 18.05, above the 50-day MA of 18.33, and below the 200-day MA of 18.71, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 55.60 is Neutral, neither overbought nor oversold. The STOCH value of 66.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTO.

CTO Realty Growth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AHH	73 Outperform	$748.95M	129.65	3.05%	10.22%	-12.13%	-14.54%
OLP	70 Neutral	$528.85M	18.10	9.57%	7.35%	1.82%	-1.03%
GOOD	65 Neutral	$663.96M	49.27	7.51%	8.42%	3.01%	―
CTO	63 Neutral	$606.99M	36.87	-1.05%	8.25%	17.48%	-172.41%
Sector *	60 Neutral	$2.82B	10.29	0.39%	8508.26%	5.90%	-17.41%
BRSP	59 Neutral	$701.89M	―	-6.29%	12.64%	-14.92%	-3.27%
PKST	57 Neutral	$456.35M	―	-6.09%	7.25%	-8.41%	88.62%

CTO Realty Growth Corporate Events

CTO Realty Growth Reports Q1 2025 Financial Results

On May 1, 2025, CTO Realty Growth announced its financial results for the first quarter of 2025, highlighting a net income of $0.01 per diluted share and a core FFO of $0.46 per diluted share. The company acquired a property in Atlanta for $79.8 million and reported a 37.2% increase in cash rent spread from signed leases. Despite a decrease in net income compared to the previous year, the company reaffirmed its full-year guidance and reported strong leasing spreads and a solid pipeline, indicating robust operational fundamentals.

Spark’s Take on CTO Stock

According to Spark, TipRanks’ AI Analyst, CTO is a Neutral.

CTO Realty Growth demonstrates strong revenue growth and cash flow management, reflected in a solid earnings call performance with record core FFO growth. However, challenges such as profitability issues and technical indicators showing mixed signals weigh down the score. The high dividend yield offers a silver lining for investors seeking income, but valuation concerns due to a negative P/E ratio remain.

To see Spark’s full report on CTO stock, click here.

CTO Realty Growth Completes Convertible Notes Exchange

On April 3, 2025, CTO Realty Growth, Inc. completed privately-negotiated transactions with holders of $35.2 million in Convertible Senior Notes, exchanging them for 1,089,555 shares of common stock and $29 million in cash. This move reduced the outstanding principal amount of the Notes to $15.8 million, which is scheduled to be settled in cash by April 15, 2025. The transaction reflects CTO’s strategic financial management and impacts its financial obligations, potentially affecting stakeholder interests.

CTO Realty Growth Reports Record High Core FFO

On February 20, 2025, CTO Realty Growth announced its financial results for the quarter and year ended December 31, 2024. The company closed investments totaling $330.8 million with a yield of 9.3%, raised $165.2 million through its ATM program, and ended the year with $222 million in liquidity. Despite a net loss of $0.35 per share for the full year, CTO reported a record high Core FFO of $1.88 per share, highlighting its strategic capital raising and leasing activities. The signed-not-open leasing pipeline stands at $5.2 million, indicating continued operational growth. The company’s performance reflects its strong investment strategy and liquidity management, positioning it well for future growth.