Thu, May 1, 8:23 PM (11 days ago)
### CTO Realty Growth, Inc. (CTO) - Q1 2025 Financial Summary **Company Overview:** CTO Realty Growth, Inc. (CTO) is a self-managed equity REIT focusing on high-quality retail and mixed-use properties in faster-growing, business-friendly markets. As of Q1 2025, CTO manages 24 properties across seven states, comprising 5.2 million square feet of leasable space. **Financial Performance (Q1 2025 vs. Q1 2024):** - **Revenue:** Total revenue increased by 27.3% to $35.8 million, driven by growth in income properties and commercial loans and investments. - **Net Income:** Net income attributable to the company decreased by 61.2% to $2.3 million, primarily due to the absence of gains on disposition of assets seen in Q1 2024. - **Earnings per Share (EPS):** Basic EPS was $0.01, down from $0.21 in Q1 2024. Diluted EPS was also $0.01, compared to $0.20 in Q1 2024. - **Cash Flow:** Operating cash flow decreased by 13.2% to $10.3 million. Investing activities used $80.6 million, while financing activities provided $68.4 million. **Segment Performance:** - **Income Properties:** Revenue increased by 28.6% to $31.7 million, with operating income up by 27.1% to $22.8 million. - **Management Services:** Revenue from PINE and other management services remained stable at around $1.2 million. - **Commercial Loans and Investments:** Interest income increased by 119.2% to $3.0 million. - **Real Estate Operations:** No revenue in Q1 2025, as all assets were sold in 2024. **Balance Sheet Highlights (Q1 2025):** - **Assets:** Total assets were $1.24 billion, with $1.11 billion in income properties. - **Liabilities:** Total liabilities were $650.0 million, with $602.2 million in long-term debt. - **Equity:** Stockholders' equity was $593.9 million. **Debt and Liquidity:** - **Long-Term Debt:** Total debt was $602.2 million, with a weighted average interest rate of 4.35%. - **Credit Facility:** $170.0 million outstanding, with $130.0 million undrawn. - **Liquidity:** CTO believes it has sufficient liquidity to meet operational and capital requirements. **Future Outlook:** - **Investments:** Guidance for 2025 investments ranges from $100.0 million to $200.0 million. - **Dispositions:** No properties sold in Q1 2025. - **Dividends:** Dividends paid were $12.0 million for common stock and $1.9 million for preferred stock. **Risks and Uncertainties:** - **Market Risks:** Exposure to interest rate changes and economic conditions. - **Operational Risks:** Dependence on tenant performance and competitive market conditions. - **Regulatory Risks:** Compliance with REIT requirements and potential changes in tax laws. **Conclusion:** CTO Realty Growth, Inc. showed strong revenue growth in Q1 2025, driven by income properties and commercial loans. However, net income was impacted by the absence of gains on disposition of assets. The company maintains a solid balance sheet and liquidity position, with a focus on strategic investments and risk management.