CTO - CTO Realty Growth: A 9% Dividend Yield From Sun Belt Retail Properties
2024-05-06 16:32:13 ET
Summary
- CTO's dividend yield at 8.9% is 137% covered by its first-quarter adjusted FFO.
- The REIT is trading at a low 9.6x multiple of the midpoint of its AFFO guidance range.
- There is no debt maturing in 2024 with just $51 million coming due next year as leasing spreads continue to show strength.
CTO Realty Growth ( CTO ) forms one of my REIT positions with its safe dividend yield, retail property portfolio, and prudent multiple to FFO all forming reasons for continued bullishness. The REIT last declared a quarterly cash dividend of $0.38 per share , kept unchanged sequentially and $1.52 per share annualized, for an 8.9% dividend yield. This was 137% covered by its fiscal 2024 first-quarter adjusted FFO ("AFFO") of $0.52 per share , a roughly 73% payout ratio that opens up a possible medium-term dividend hike. The REIT also bought back 41,000 shares of its common stock during the first quarter. However, this was in effect canceled out by the issue of 125,000 shares on its ATM program for $2.1 million in gross proceeds during the quarter....
CTO Realty Growth: A 9% Dividend Yield From Sun Belt Retail Properties