Cto Realty Growth Stock Earnings Reports

CTO Realty Growth reported a strong start to 2026 driven by robust leasing, same-store NOI growth, and active capital deployment. Key operational highlights: executed 153k sq ft of leases/renewals (146k comparable) with average cash rent up ~14%; portfolio leased at 95.4%; signed-not-open pipeline of $6.2M in annual base rent (~5.5% of in-place ABR); shopping-center same-property NOI +6.8% (4.2% excluding nonrecurring items). Investment activity: acquired Palms Crossing (McAllen, TX) for $81.6M (98% leased) expanding Texas exposure; received $30M repayment from Watters Creek and completed a $75M preferred equity structured investment (12% yield, 2-year term), raising structured investments to $158M with a weighted yield of 11.6%. Capital recycling: Madison Yards (Atlanta) under contract and expected to close in May, which will reduce AMC exposure and support positive cap-rate spread recycling. Balance sheet: total debt $651.8M, weighted average interest 4.6%, liquidity ~$125M, net debt / pro forma adjusted EBITDA 6.4x. Issued ~733.9k common shares under ATM for $14.2M. Guidance: raised 2026 core FFO to $2.06–$2.11/sh and AFFO to $2.19–$2.24/sh (guidance midpoint implies ~12% growth); key assumptions include $175M–$250M of investment volume (including structured), shopping-center same-property NOI +3.5%–4.5%, and G&A $19.7M–$20.2M. Management expects outparcel development (~$30M) to deliver low double-digit unlevered yields, with most outparcel benefits contributing in 2027–2028. Management sees no current leasing hesitancy from retailers and targets keeping structured investments below ~15% of the balance sheet.