CTO Stock Recent News

CTO Realty's latest acquisition of a grocery-anchored property in a prime location and with strong community ties marks a strategic buy.

Avoid private equity and REITs offering unsustainable high yields; they often rely on risky investments or leverage, leading to potential capital destruction. We prefer to look at the cashflows first to ensure companies have enough to sustain the dividend while retaining some for growth. This article explores the various pitfalls of traditional high-yield investing and proposes 3 high-yield stocks that offer a better total return potential.

NEW YORK, Dec. 13, 2024 (GLOBE NEWSWIRE) -- Keefe, Bruyette & Woods, Inc., a leading specialist investment bank to the financial services and fintech sectors, and a wholly owned subsidiary of Stifel Financial Corp. (NYSE: SF), announces the upcoming index rebalancing for the fourth quarter of 2024.

CTO Realty Growth offers a 7.44% dividend yield on the common stock, but preferred stock CTO.PR.A provides safer, cumulative dividends at a 6.83% yield. Preferred stockholders have priority over common shareholders in dividend payments, making CTO.PR.A a more secure investment despite its slightly lower yield. CTO's financial ratios indicate potential challenges in maintaining current common stock dividends, enhancing the appeal of the more stable preferred stock dividends.

CTO Realty Growth presents a compelling buy opportunity with a forward P/AFFO multiple of 10.34x, well below the sector median of 17.04x. The REIT's strong growth potential is supported by strategic acquisitions in high-growth Sun Belt markets and a significant increase in investment activity. Despite higher leverage, management's efforts to deleverage and a solid balance sheet support future growth, with raised FFO and AFFO guidance for 2024.

CTO Realty Growth has expanded its gross leasable space by a material pace since the start of 2024. The REIT is paying out a 7.6% common dividend yield that is at least 164% covered by free cash flow. Only $51 million of debt comes due in 2025 against liquidity of $213 million at the end of the third quarter.

The Dividend Harvesting Portfolio reached an all-time high, with a 27.82% return on invested capital and forward dividend income of $1,863.23. I remain bullish on the market, expecting a strong 2025, driven by falling rates, economic growth, and declining unemployment. Realty Income and CTO Realty Growth were added to the portfolio, with plans to focus on other sectors in upcoming months.

CTO Realty Growth has appreciated 14.31% YTD, focusing on quality over quantity in high-growth markets like Florida and Georgia, benefiting from population migration trends. Q3 earnings beat estimates with $31.81 million in revenue and $0.50 FFO, showcasing strong performance and strategic portfolio upgrades, including multi-tenant and grocery-anchored properties. Despite risks like competition and macroeconomic factors, CTO's dividend yield exceeds 7.5%, and it's trading below book value, offering significant upside potential.

WINTER PARK, Fla., Nov. 19, 2024 (GLOBE NEWSWIRE) -- CTO Realty Growth, Inc. (NYSE: CTO) (the “Company” or “CTO”) announced today that its Board of Directors has authorized, and the Company has declared, a quarterly cash dividend of $0.38 per share of common stock for the fourth quarter of 2024 (the “Common Stock Cash Dividend”). The Common Stock Cash Dividend represents an annualized yield of approximately 7.8% based on the closing price of the Company's common stock on November 18, 2024.

CTO Realty Growth, Inc. has been expanding aggressively since 2019, achieving robust revenue and net income growth, making it an excellent choice for real estate diversification. CTO's third quarter 2024 performance highlights a 22% CAGR, significant investments, and strategic asset monetization, showcasing its adaptability and growth-oriented approach. CTO's valuation metrics, including a 7.72% dividend yield and strong cash flow ratios, underscore its potential for income generation and capital appreciation.