CTO Realty Growth's Q4 2024 Earnings: Unpacking Contradictions in Investments, Acquisitions, and Market Dynamics

These are the key contradictions discussed in CTO Realty Growth, Inc.'s latest 2024Q4 earnings call, specifically including: Structured Investment Expectations, Acquisition Strategy, Vacancy and Leasing Strategy, and Market Conditions:



Investment Activity and Growth:
- In 2024, CTO Realty Growth, Inc. completed $331 million of investments, resulting in a 26% increase in portfolio size to 4.7 million square feet.
- This growth was driven by strategic acquisitions in target markets like Charlotte, Orlando, and Tampa, with investments yielding an average of 9.3%.

Leasing Performance and Tenant Demand:
- The company signed 450,000 square feet of leases in 2024, with an average rent of $24.07 per square foot and a positive cash lease spread of 23%.
- The strong leasing activity was supported by high tenant demand for CTO's properties within strategic markets.

Financial Performance and Leverage:
- CTO reported core FFO of $1.88 per share for 2024, representing a 6% year-on-year increase.
- The improvement in financial performance was attributed to efficient capital raising and a significant reduction in leverage.

Structured Investments and Development:
- CTO originated a $40 million first mortgage loan for an 80,000-square-foot retail center in Atlanta, with a 30-month term and an initial fixed interest rate of 12.15%.
- This loan is part of CTO's strategy to diversify its investment portfolio, align with its target markets, and support development projects.