CTO Realty Growth (CTO) Q4 2024 earnings summary

Executive summary

• Achieved record Core FFO of $1.88 per share for 2024, up 6% year-over-year, with $330.8 million in investments at a 9.3% yield and $222 million in year-end liquidity.

• Portfolio expanded by 1 million sq ft (26%) to 4.7 million sq ft, with a focus on Southeast and Southwest MSAs and 81% of ABR from Georgia, Texas, Florida, and North Carolina.

• Executed 452,000 sq ft of new and renewal leases in 2024, bringing leased occupancy to 93.4% and maintaining 23% blended leasing spreads.

• Total enterprise value rose 33% to $1.3 billion, with leverage reduced and liquidity exceeding $200 million at year-end.

• Sold two properties for $38 million at an 8.7% exit cap rate, generating $3.8 million in gains.

Financial highlights

• FY 2024 revenues were $124.5 million, up from $109.1 million in 2023; net loss attributable to common stockholders was $(17.1) million for 2024.

• Core FFO per diluted share for 2024 was $1.88 (up 6.2% year-over-year); AFFO per diluted share was $2.00 (up 4.7%).

• Q4 Core FFO per diluted share was $0.46 (down 4.2% year-over-year); AFFO per diluted share was $0.49 (down 5.8%).

• Same-property NOI grew 4% year-over-year to $60.4 million.

• Net debt to pro forma adjusted EBITDA improved to 6.3x from 7.6x prior year.

Outlook and guidance

• 2025 Core FFO per diluted share guidance: $1.80–$1.86; AFFO per diluted share: $1.93–$1.98.

• Guidance reflects a $0.05 per share cost from cash settlement of convertible notes and a $0.10 per share impact from retenanting 10 vacant spaces.

• Same-store NOI growth guidance for 2025 is 1%, but would have been 2–3% without the impact of vacancies.

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

• Expecting robust acquisition activity in 2025, primarily core acquisitions, with structured investments likely later in the year.