One-glance verdict
Within fair range
$32.04 our estimate vs market $20.72
Wall Street consensus: $24.60 (-23.2% lower than our fair-value estimate)
35% below our estimate
Fundamentals snapshot
CTO Realty Growth, Inc.
CTO · NYQ · Real Estate · REIT - Diversified
Current price
$20.72
52-week range
$15.07 - $22.71
Market cap
$776.70M
Balance sheet
Stretched
1.29x Concerning
Net debt $644.75M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 3.6% last year.
- Reward Returns 8.5% on equity, ahead of 25% of its peers.
- Risk Forward P/E (33.4x) is higher than trailing (14.8x) - earnings are expected to drop.
- Risk Net debt grew 48.0% over 3 years.
What this company does
CTO Realty Growth, Inc.
CTO Realty Growth is a real estate company that owns and operates retail properties like shopping centers, primarily in fast-growing parts of the U.S. The company makes its money mainly from the rent paid by store tenants, which provides a steady income stream. As a special type of company called a real estate investment trust (a company that owns buildings and is required to pay out most of its profits to investors), this rental income is important because it directly funds payments to its shareholders.
How the company got here
CTO Realty Growth has a long history, starting as Consolidated-Tomoka Land Co. in 1902. For much of its life, it was focused on land in Florida. A key turning point was its decision to transform into a Real Estate Investment Trust (REIT), a type of company that owns and operates income-producing real estate and shares most of its profits with investors through dividends (regular payments to shareholders). This shift involved selling off much of its land and buying properties like shopping centers in various high-growth markets across the United States. This change in strategy led to its renaming as CTO Realty Growth to better reflect its new focus.
What it actually does
CTO Realty Growth is essentially a landlord for businesses. It owns and operates a portfolio of retail-based properties, primarily shopping centers, in fast-growing areas of the United States. Think of the local shopping plaza with a grocery store, a gym, and other shops – CTO owns properties like that. They make money by leasing out space to a variety of tenants, from large national chains to smaller local businesses. The company aims to buy properties in locations with strong population and job growth, which helps ensure their spaces remain in demand.
Income Properties
This is CTO's main business, making up the vast majority of its revenue. The company owns more than 20 commercial properties, mostly open-air shopping centers and mixed-use centers (properties that combine retail, and sometimes office or residential space). They collect rent from a diverse group of tenants, such as grocery stores, restaurants, and national retailers like Dick's Sporting Goods and Best Buy. This segment generates a steady stream of income through lease agreements with these businesses.
Management Services
CTO also makes money by managing another real estate company called Alpine Income Property Trust (ticker: PINE). Because CTO has expertise in real estate, Alpine pays them a fee to handle the day-to-day operations and investment decisions for Alpine's properties. This provides CTO with a consistent source of income that is separate from the rental income they earn from their own properties. CTO also owns a significant stake in Alpine, so it receives dividend income (a share of Alpine's profits) as well.
Commercial Loans and Investments
This is a smaller but growing part of CTO's business. In this segment, the company acts like a bank for other real estate investors, providing loans or investing directly in real estate projects. For example, they might provide a short-term loan to a developer building a new shopping center. In return, CTO earns interest income on these loans and investments, which adds another layer to how they generate revenue.
What management is betting on now
Management's current strategy is focused on expanding their portfolio of high-quality retail properties in fast-growing markets, particularly in the Sun Belt region of the U.S. They are actively buying new properties, like the recent acquisition of a large mixed-use center in Kansas City, and selling off others to reinvest the money. The company is also increasing its investments in structured finance, such as providing preferred equity (a type of investment that gets paid out before common stock) to other real estate projects that offer high initial returns. This dual approach of owning properties and making high-yield investments is intended to drive continued earnings growth.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$41.17M
Net income
$6.21M
Diluted EPS
0.13
Operating cash flow
$14.60M
Free cash flow
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Sources
Revenue
$38.34M
Net income
$28.34M
Diluted EPS
0.81
Operating cash flow
$6.86M
Free cash flow
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Sources
Revenue
$37.76M
Net income
$2.91M
Diluted EPS
0.03
Operating cash flow
$25.50M
Free cash flow
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Sources
Revenue
$37.64M
Net income
$-23.42M
Diluted EPS
-0.77
Operating cash flow
$21.93M
Free cash flow
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Sources
Revenue
$35.81M
Net income
$2.26M
Diluted EPS
0.01
Operating cash flow
$10.31M
Free cash flow
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Sources
Revenue
$35.74M
Net income
$-15.22M
Diluted EPS
-0.69
Operating cash flow
$23.52M
Free cash flow
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Sources
Revenue
$31.80M
Net income
$6.23M
Diluted EPS
0.17
Operating cash flow
$21.19M
Free cash flow
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Sources
Revenue
$28.84M
Net income
$1.18M
Diluted EPS
-0.03
Operating cash flow
$12.88M
Free cash flow
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Is it cheap or expensive?
Fair value $32.04 vs current price $20.72
Wall Street consensus is the average analyst price target: $24.60 (-23.2% lower than our fair-value estimate).
Our most-likely fair value is $32.04 a share — about 54.6% away from today's price of $20.72, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $644.7M. Interest coverage 1.3x.
Net debt
$644.75M
Interest coverage
1.29x
CTO Realty Growth, Inc.'s profit covers its interest bill about 1.3 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
CTO
BASELINE
CTO Realty Growth, Inc.
Total debt $658.88M Interest coverage 1.29x This is the baseline the peer rows are being compared against.
Total debt $2.58B Interest coverage -0.01x -100% vs CTO This peer has almost no interest-payment cushion compared with CTO.
Total debt $1.60B Interest coverage 1.77x +37% vs CTO Carries about 1.4x more debt cushion than CTO.
Total debt $0.00 Interest coverage -0.10x -100% vs CTO This peer has almost no interest-payment cushion compared with CTO.
What you should know
The case for and against CTO
3 Rewards
2 Risks
Rewards
-
Revenue grew 3.6% last year.
-
Returns 8.5% on equity, ahead of 25% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Forward P/E (33.4x) is higher than trailing (14.8x) - earnings are expected to drop.
-
Net debt grew 48.0% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
14.80x
Forward P/E
33.42x
P/B
1.17x
P/S
4.82x
EV/EBITDA
14.34x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
74.6%
Operating margin
25.4%
Net margin
32.6%
ROE
8.5%
ROA
1.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.99x
Current ratio
2.98x
Quick ratio
1.25x
Total debt
$658.88M
Total cash
$14.13M
Growth
How the business has been compounding
Revenue TTM
$154.91M
Revenue 5Y CAGR
20.8%
EPS TTM
1.40
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$68.89M
Free CF TTM
$64.60M
FCF margin
41.7%
Dividend
Shareholder payout
Yield
7.3%
Payout ratio
110.1%
Last ex-div date
2026-09-10