CTO Stock Forecast & Price Target

CTO Realty Growth has demonstrated solid performance with a 0.9% year-over-year increase in same-property net operating income (NOI) and a significant positive cash rent spread of 21.6% on 190,000 square feet of newly signed leases. The company anticipates a further boost in same-property NOI growth, raising expectations to +250 basis points, driven by an ongoing leasing strength and the successful turnover of existing leases at favorable spreads. Additionally, CTO has increased its full-year guidance for core funds from operations per share, projecting figures between $1.84 and $1.87, which reflects continued operational excellence and potential for enhanced shareholder value.

CTO Realty Growth's stock exhibits a substantial discount of approximately 31% relative to its peers, reflecting challenges in achieving satisfactory valuation metrics. The company's recent physical occupancy decline to 90.2% from 91.0% indicates potential difficulties in property leasing and overall demand within its portfolio. Furthermore, a significant GAAP EPS miss of ($0.77), driven by a $20.4 million loss from extinguishing convertible notes, raises concerns about financial stability and income potential moving forward.