Breaking Down CTO Realty Growth, Inc. (CTO) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments and seeking a comprehensive understanding of the financial stability of real estate companies? Have you considered CTO Realty Growth, Inc. (CTO)? In 2024, CTO Realty Growth closed investments of $330.8 million, achieving a weighted average initial cash yield of 9.3%. But how does this translate to overall financial health? The company reported a net loss per diluted share of $(0.35), while achieving a record high Core FFO of $1.88 per share. With total debt at $0.53 billion and revenue reaching $124.5 million, let's delve into the critical insights that can help you make informed decisions about CTO Realty Growth.

CTO Realty Growth, Inc. (CTO) Revenue Analysis

CTO Realty Growth, Inc. (CTO) operates as a real estate investment trust (REIT), with its revenue primarily derived from:

• Lease income from its portfolio of commercial properties.
• Property management and other services provided to tenants.
• Gains from property sales.

Analyzing the company's revenue streams involves looking at the performance of its core segments and how they contribute to the overall financial health. For further insights into the types of investors interested in CTO, see: Exploring CTO Realty Growth, Inc. (CTO) Investor Profile: Who’s Buying and Why?

CTO Realty Growth's financial performance can be evaluated through its year-over-year revenue growth. This involves examining historical trends to determine the percentage increase or decrease in revenue over specific periods. To provide an accurate analysis, I would need the specific revenue figures for the past few years. Based on available data up to February 2024, CTO Realty Growth reported total revenues of $104.82 million.

A breakdown of the company’s revenue by segment helps to identify which areas are driving growth and which may be underperforming. This can include:

• Rental Income: Revenue generated from leasing commercial properties.
• Property Sales: Gains from the disposition of real estate assets.
• Other Income: Revenue from management fees, service charges, and other miscellaneous sources.

Understanding the contribution of each segment provides a clearer picture of the company's operational strengths and weaknesses. To illustrate, let's consider a hypothetical breakdown based on typical REIT operations. Please note that the following figures are examples and do not reflect actual data:

Significant changes in revenue streams can arise from various factors, such as:

• Acquisitions and Dispositions: Buying or selling properties can significantly impact revenue.
• Lease Renewals and Vacancies: Changes in occupancy rates and lease terms affect rental income.
• Market Conditions: Economic factors and real estate trends influence property values and rental rates.

For example, a large property acquisition could substantially increase rental income, while the sale of a major asset could temporarily boost revenue through gains on the sale. It is essential to monitor these changes and understand their underlying causes to assess the sustainability of CTO Realty Growth’s revenue streams.

CTO Realty Growth, Inc. (CTO) Profitability Metrics

Analyzing CTO Realty Growth, Inc. (CTO)'s profitability involves examining several key metrics that provide insights into the company's financial health and operational efficiency. These metrics include gross profit, operating profit, and net profit margins, each offering a different perspective on the company’s ability to generate earnings.

To understand CTO Realty Growth, Inc. (CTO)'s profitability, one must delve into its financial statements and compare its performance against industry benchmarks and historical data. Here’s a detailed look at the components:

Gross Profit Margin:

• This metric indicates the percentage of revenue remaining after deducting the cost of goods sold (COGS). A higher gross profit margin suggests that the company is efficient in managing its production costs.
• To assess the trend, one would typically compare the gross profit margins over several periods. For example, an increasing gross profit margin year-over-year could indicate improved operational efficiency or better pricing strategies.

Operating Profit Margin:

• The operating profit margin reflects the percentage of revenue remaining after deducting both the cost of goods sold and operating expenses (such as administrative and selling expenses). This metric provides a clearer picture of the company's profitability from its core business operations.
• A rising operating profit margin often signals better cost control and operational effectiveness. Conversely, a declining margin could point to increased operating expenses or decreased efficiency.

Net Profit Margin:

• The net profit margin is the percentage of revenue remaining after all expenses, including interest and taxes, have been deducted. This is the 'bottom line' profitability metric, showing how much of each dollar of revenue translates into profit for the company.
• Trends in net profit margin are critical for investors. A consistent or increasing net profit margin suggests strong financial health, while a decreasing margin may warrant further investigation into the underlying causes, such as increased debt or higher tax liabilities.

Comparison with Industry Averages:

Comparing CTO Realty Growth, Inc. (CTO)'s profitability ratios with industry averages provides context. If CTO's margins are higher than its peers, it may indicate a competitive advantage. Conversely, lower margins might suggest areas where the company needs to improve efficiency or reduce costs.

Analysis of Operational Efficiency:

• Cost Management: Efficient cost management is crucial for maintaining and improving profitability. Analyzing trends in operating expenses as a percentage of revenue can reveal whether the company is controlling costs effectively.
• Gross Margin Trends: Monitoring gross margin trends helps assess the company's ability to manage production costs and pricing strategies. A rising gross margin typically indicates improved efficiency or stronger pricing power.

For a deeper understanding of CTO Realty Growth, Inc. (CTO) and its investors, consider reading Exploring CTO Realty Growth, Inc. (CTO) Investor Profile: Who’s Buying and Why?.

CTO Realty Growth, Inc. (CTO) Debt vs. Equity Structure

CTO Realty Growth, Inc. (CTO) employs a mix of debt and equity to finance its operations and growth initiatives. Understanding the specifics of their debt levels, ratios, and financing activities is crucial for investors.

As of the fiscal year 2024, CTO Realty Growth, Inc.'s debt profile includes both short-term and long-term obligations. Evaluating these components provides a clear picture of the company's financial commitments:

• Short-term debt: This represents obligations due within one year.
• Long-term debt: This includes debts extending beyond one year, often used for significant investments and acquisitions.

The debt-to-equity ratio is a key metric to assess CTO Realty Growth, Inc.’s financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. A comparison against industry standards provides context on whether CTO's leverage is conservative or aggressive.

Recent activities in debt markets can significantly impact CTO Realty Growth, Inc.'s financial health. These include:

• Debt issuances: New bonds or loans can provide capital for growth but also increase debt burden.
• Credit ratings: Ratings from agencies like Moody's or S&P reflect the creditworthiness of CTO, influencing borrowing costs.
• Refinancing activity: Restructuring existing debt can improve terms, lower interest rates, and extend maturities.

Balancing debt and equity is vital for sustainable growth. Too much debt can increase financial risk, while relying solely on equity might limit growth potential. CTO Realty Growth, Inc. strategically manages this balance to optimize its capital structure.

Here is a table summarizing key components of CTO Realty Growth, Inc.'s debt and equity structure:

Understanding these elements offers investors a comprehensive view of how CTO Realty Growth, Inc. manages its financial resources and positions itself for future growth.

More insights can be found here: Breaking Down CTO Realty Growth, Inc. (CTO) Financial Health: Key Insights for Investors

CTO Realty Growth, Inc. (CTO) Liquidity and Solvency

Understanding CTO Realty Growth, Inc.'s financial health requires a close examination of its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency assesses its ability to meet long-term obligations. Key metrics such as current and quick ratios, working capital trends, and cash flow statements provide valuable insights into these aspects.

Liquidity Ratios:

• Current Ratio: The current ratio measures a company's ability to pay off its current liabilities with its current assets.
• Quick Ratio: The quick ratio, also known as the acid-test ratio, is similar to the current ratio but excludes inventories, which are considered less liquid.

Analysis of CTO Realty Growth, Inc.'s liquidity involves monitoring these ratios over time to identify any potential trends or concerns. A declining current or quick ratio may indicate a weakening liquidity position, while an increasing ratio may suggest improved liquidity.

Working Capital Trends:

Working capital, calculated as current assets minus current liabilities, is another important indicator of a company's short-term financial health. Monitoring changes in working capital can reveal whether a company is effectively managing its short-term assets and liabilities. A decrease in working capital may signal potential liquidity issues, whereas an increase could indicate improved liquidity.

Cash Flow Statements Overview:

Cash flow statements provide a comprehensive view of a company's cash inflows and outflows during a specific period. These statements are typically divided into three sections:

• Operating Activities: Cash flows from the company's core business operations.
• Investing Activities: Cash flows related to the purchase and sale of long-term assets.
• Financing Activities: Cash flows related to debt, equity, and dividends.

Analyzing the trends in these cash flow categories can provide valuable insights into a company's liquidity and solvency. For example, consistently positive cash flow from operating activities indicates a strong ability to generate cash from its core business, which can be used to meet its obligations and invest in future growth. Conversely, negative cash flow from operating activities may raise concerns about the company's ability to sustain its operations.

Potential Liquidity Concerns or Strengths:

Based on the analysis of liquidity ratios, working capital trends, and cash flow statements, investors can identify potential liquidity concerns or strengths for CTO Realty Growth, Inc. Factors such as declining liquidity ratios, negative working capital, or negative cash flow from operating activities may indicate potential liquidity issues. On the other hand, strong liquidity ratios, positive working capital, and positive cash flow from operating activities may suggest a strong liquidity position.

More insights about the company are available at: Mission Statement, Vision, & Core Values of CTO Realty Growth, Inc. (CTO).

CTO Realty Growth, Inc. (CTO) Valuation Analysis

Determining whether CTO Realty Growth, Inc. (CTO) is overvalued or undervalued requires examining several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield and payout ratios, and analyst consensus.

As of April 2025, CTO Realty Growth, Inc. (CTO) presents a mixed valuation profile based on available data. The key valuation ratios provide a snapshot of how the market perceives the company's value relative to its earnings, book value, and operational cash flow.

• Price-to-Earnings (P/E) Ratio: The P/E ratio, a common metric for evaluating stock valuation, compares a company's stock price to its earnings per share (EPS). As of the latest reports, CTO's P/E ratio stands at -3.95, which means the company is not profitable.
• Price-to-Book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. CTO's most recent P/B ratio is 0.72. A P/B ratio of less than 1 may suggest that the stock is undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio is used to assess a company's total value (including debt) relative to its earnings before interest, taxes, depreciation, and amortization. As of the latest data, CTO's EV/EBITDA ratio is 14.43.

Analyzing CTO Realty Growth, Inc.'s stock price trends over the past year offers additional insights. Recent data indicates the following:

• Last 12 Months: CTO has experienced volatility in its stock price over the last 12 months. As of April 18, 2025, the stock traded at $15.73.

For investors, dividend yield and payout ratios are important indicators, especially for REITs like CTO Realty Growth, Inc., which are often favored for their income-generating potential. Here’s a look at these metrics:

• Dividend Yield: CTO's dividend yield is approximately 9.92%.
• Payout Ratio: CTO's payout ratio is -39.14%.

Analyst consensus provides a summarized view of professional evaluations of CTO Realty Growth, Inc.'s stock. These ratings can influence investor perception and stock performance.

As of April 2025, the analyst consensus on CTO's stock is as follows:

• Overall Rating: The consensus among analysts is a Hold.
• Recommendations:
  • Buy: 1
  • Hold: 2
  • Sell: 0

Here is a detailed table summarizing the analyst ratings and price targets for CTO Realty Growth, Inc.:

Understanding a company's mission, vision, and core values can provide additional context for evaluating its long-term potential. For more insights, refer to: Mission Statement, Vision, & Core Values of CTO Realty Growth, Inc. (CTO).

CTO Realty Growth, Inc. (CTO) Risk Factors

CTO Realty Growth, Inc. (CTO) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, and overall market conditions. Understanding these potential challenges is crucial for investors.

Here's a breakdown of key risk areas:

• Industry Competition: The real estate market is intensely competitive. CTO Realty Growth, Inc. (CTO) competes with numerous other real estate companies, REITs, and individual property owners for tenants and acquisitions. Increased competition could lead to lower occupancy rates and reduced rental income.
• Regulatory Changes: Changes in zoning laws, environmental regulations, or tax policies can adversely affect CTO Realty Growth, Inc. (CTO)'s operations and profitability. Compliance with new regulations may require significant capital expenditures.
• Market Conditions: Economic downturns, rising interest rates, and fluctuations in property values can negatively impact CTO Realty Growth, Inc. (CTO)'s financial performance. A decrease in consumer spending or business investment could reduce demand for commercial properties.

Recent earnings reports and filings highlight several operational, financial, and strategic risks:

• Operational Risks: These include property management challenges, such as maintaining high occupancy rates, controlling operating expenses, and addressing tenant issues. Failure to effectively manage properties can lead to decreased revenue and increased costs.
• Financial Risks: CTO Realty Growth, Inc. (CTO) faces risks related to its debt levels, access to capital, and interest rate fluctuations. High debt levels can increase vulnerability to economic downturns and limit financial flexibility.
• Strategic Risks: These involve the company's ability to execute its investment strategy, adapt to changing market conditions, and manage potential conflicts of interest. Failure to make sound investment decisions or effectively manage growth can harm financial performance.

Mitigation strategies and plans are essential for managing these risks. While specific details may vary, common strategies include:

• Diversification: Diversifying the property portfolio across different geographic locations and property types can reduce exposure to regional economic downturns or industry-specific challenges.
• Risk Management Policies: Implementing comprehensive risk management policies and procedures can help identify, assess, and mitigate potential risks.
• Financial Planning: Maintaining a strong balance sheet, managing debt levels, and securing access to capital can provide financial flexibility and resilience during challenging times.

Understanding the interplay between CTO Realty Growth, Inc. (CTO)'s mission, vision, and core values provides additional context for assessing its strategic direction and risk management approach. Learn more at: Mission Statement, Vision, & Core Values of CTO Realty Growth, Inc. (CTO).

CTO Realty Growth, Inc. (CTO) Growth Opportunities

CTO Realty Growth, Inc. (CTO) possesses several key growth drivers that underpin its future prospects. These drivers encompass strategic acquisitions, market expansions, and proactive asset management, all geared towards enhancing shareholder value. The company's focus on high-growth markets and value-add opportunities positions it favorably for sustained growth.

Analysis of key growth drivers:

• Strategic Acquisitions: CTO Realty Growth, Inc. (CTO) strategically targets properties in high-growth markets, aiming to enhance its portfolio with accretive acquisitions.
• Market Expansion: The company focuses on expanding its presence in key Sun Belt markets, capitalizing on demographic shifts and economic growth in these regions.
• Proactive Asset Management: CTO Realty Growth, Inc. (CTO) actively manages its existing portfolio to optimize occupancy rates, increase rental income, and enhance property values.

While specific future revenue growth projections and earnings estimates for CTO Realty Growth, Inc. (CTO) beyond 2024 are subject to market conditions and company performance, analysts' estimates provide insight into potential growth trajectories. For example, one analyst consensus estimate forecasts earnings per share (EPS) of $1.18 for the fiscal year ending December 2024. These estimates are based on various factors, including historical performance, market trends, and company guidance.

Strategic initiatives and partnerships that may drive future growth for CTO Realty Growth, Inc. (CTO) include:

• Joint Ventures: CTO Realty Growth, Inc. (CTO) may engage in joint ventures to co-develop or acquire properties, leveraging the expertise and capital of partners to expand its reach and capabilities.
• Redevelopment Projects: The company may undertake redevelopment projects to modernize existing properties, attract new tenants, and increase rental income.
• Strategic Partnerships: CTO Realty Growth, Inc. (CTO) could form strategic partnerships with retailers, developers, or other real estate companies to access new markets, properties, or expertise.

CTO Realty Growth, Inc. (CTO) possesses several competitive advantages that position it for growth:

• Experienced Management Team: The company benefits from an experienced management team with a proven track record of success in real estate investment and management.
• Strong Balance Sheet: CTO Realty Growth, Inc. (CTO)'s strong balance sheet provides financial flexibility to pursue acquisitions, fund development projects, and navigate market uncertainties.
• Focus on High-Growth Markets: The company's focus on high-growth Sun Belt markets positions it to capitalize on favorable demographic and economic trends.

Here's a look at some key financial data points:

For more insights into CTO Realty Growth, Inc. (CTO) and its investors, check out: Exploring CTO Realty Growth, Inc. (CTO) Investor Profile: Who’s Buying and Why?