CTO Realty Growth (CTO) Q1 2025 earnings summary

Executive summary

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

• Signed over 112,000 sq ft of new leases, renewals, and extensions at rents 25–37.2% above portfolio average, reflecting strong tenant demand and positive leasing spreads.

• Portfolio consists of 24 properties totaling 5.2 million sq ft, concentrated in high-growth Southeast and Southwest MSAs, with 83% of ABR from Georgia, Texas, Florida, and North Carolina.

• Portfolio leased at 93.8% and occupied at 91% as of March 31, 2025, with a $4 million sign-not-open leasing pipeline.

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

Financial highlights

• Core FFO for Q1 2025 was $14.4–$14.9 million ($0.46–$0.47 per share diluted), up $3.7–$4.1 million year-over-year; AFFO was $15.5 million ($0.49 per share diluted).

• Q1 2025 revenues: $35.8 million, up from $28.1 million in Q1 2024; net income attributable to the company: $2.3 million, down from $5.8 million.

• Same-property NOI increased 2.4% to $17.1 million; income property revenue rose 28.6% to $31.7 million.

• Net debt to EBITDA at 6.6x; net debt: $595–$603.8 million as of March 31, 2025.

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

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

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

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