CTO Realty Growth (CTO) Q1 2025 earnings summary

Executive summary

• Achieved a strong quarter with total revenue rising 27.3% year-over-year to $35.8 million, driven by robust investment volume, leasing activity, and the acquisition of Ashley Park for $79.8–$80 million.

• Signed over 112,000 sq ft of new leases, renewals, and extensions at blended cash leasing spreads of 25%–37.2%, reflecting strong tenant demand.

• Portfolio includes 24 properties totaling 5.2 million sq ft, focused on high-growth Southeast and Southwest MSAs, with 93.8% leased and 91% occupied at quarter end.

• High-quality tenant base, with 43% of ABR from publicly traded tenants and 21% from investment-grade tenants.

• Net income attributable to the company was $2.3 million, down from $5.8 million in Q1 2024, primarily due to the absence of asset sale gains.

Financial highlights

• Core FFO for Q1 2025 was $14.4–$14.9 million ($0.46–$0.47/share diluted), up from $10.8 million ($0.41/share) in Q1 2024; AFFO was $15.5 million ($0.49/share), compared to $11.6 million ($0.52/share) in Q1 2024.

• Q1 2025 revenues: $35.8 million, up from $28.1 million in Q1 2024; same-property NOI: $17.1 million, up 2.4% year-over-year.

• Net debt to EBITDA stood at 6.6x; net debt: $595–$604 million as of March 31, 2025.

• Liquidity at quarter end was $138–$140 million, with $130 million undrawn revolver and no debt maturities for the remainder of 2025.

• Dividend per common share was $0.38; per Series A preferred share was $0.40 for Q1 2025.

Outlook and guidance

• Reaffirmed full-year 2025 guidance: core FFO of $1.80–$1.86 and AFFO of $1.93–$1.98 per diluted share.

• Same-property NOI growth expected at ~1% for 2025.

• Targeting $100–$200 million in new investments at 8.0%–8.5% initial cash yields.

• Rent commencements from the leasing pipeline and anchor re-leasing expected to provide a strong tailwind into 2026.

• General and administrative expenses expected between $17.5–$18.0 million.