CTO Realty Growth Inc - New - New
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.15%.
Did CTO Beat Earnings? Q1 2025 Results
CTO Realty Growth delivered a stronger-than-expected first quarter, posting earnings per share of $0.01 against a consensus estimate of negative $0.51, a beat of roughly 102%, while revenue of $35.81 million edged past the $35.25 million estimate and surged 27.3% year-over-year. The headline driver was the company's $79.80 million acquisition of Ashley Park, a 559,000-square-foot lifestyle center in Atlanta's Newnan submarket that draws over 6 million annual visits and was secured at a going-in cap rate near the high end of CTO's 8.0% to 8.5% target yield range. Leasing momentum added texture to the results, with 109,000 square feet of comparable leases signed at a blended cash rent spread of 37.2%, including an 82% spread on new leases. Core FFO climbed 34.5% to $14.45 million, though per-share Core FFO dipped 4.2% to $0.46 amid a larger share count. Looking ahead, management reaffirmed full-year guidance for Core FFO per diluted share of $1.80 to $1.86 and AFFO per diluted share of $1.93 to $1.98.
- 37.2% comparable cash leasing spreads on 109,000 square feet
- Same-Property NOI growth of 2.4% year-over-year
- Acquisition of Ashley Park lifestyle center for $79.8 million
- Signed-not-open pipeline of $4.0 million representing 4.0% of in-place cash base rent
- 82% cash spread on comparable new leases
- Income property revenue growth to $31.7 million from $24.6 million year-over-year
- Interest income from commercial loans grew to $2.96 million from $1.35 million year-over-year
“We continued to execute our strategy and produced strong results across our platform to start the year. We acquired Ashley Park, a 559,000-square-foot, lifestyle center located in the Newnan submarket of Atlanta, Georgia for a purchase price of $79.8 million at a going in yield that was at the high end of our guidance. Additionally, our operating fundamentals remain strong as evidenced by our leasing spreads and pipeline.”
CTO Realty Growth CEO, on the earnings call
Forward Guidance & Outlook
CTO reaffirmed its full-year 2025 guidance: Core FFO per diluted share of $1.80 to $1.86 and AFFO per diluted share of $1.93 to $1.98, both attributable to common stockholders. Key assumptions include investments of $100 million to $200 million at weighted average initial cash yields of 8.0% to 8.5%, Same-Property NOI growth of approximately 1% (including impact of announced and anticipated store closings), and general and administrative expenses of $17.5 million to $18.0 million. Full-year 2025 net loss attributable to the company per diluted share is estimated at ($0.46) to ($0.40), with a $0.62 per share loss on extinguishment of debt related to the 2025 Convertible Notes retirement.
CTO YoY Financials
CTO Revenue by Segment
CTO Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.