CTO Realty Growth, Inc. (NYSE: CTO) Q4 2024 Earnings Call Transcript
On February 21, 2025, at 9:00 AM ET, CTO Realty Growth, Inc. (NYSE: CTO) held its Fourth Quarter and Full Year 2024 Earnings Call. The participants included Phil Mays, the Chief Financial Officer, and John Albright, the President & Chief Executive Officer. The call was moderated by an operator. Several analysts participated in the call, including Gaurav Mehta from Alliance Global Partners, Rob Stevenson from Janney Montgomery Scott, Matthew Erdner from JonesTrading, RJ Milligan from Raymond James, John Massocca from B. Riley Securities, and Craig Kucera from Lucid Capital Markets. Michael Gorman from BTIG was also present.
CTO’s Financial Performance
During the call, CTO’s management team discussed the company’s financial performance for the fourth quarter and full year 2024. They reported a FFO (Funds From Operations) of $1.25 per share for the quarter, which was above the consensus estimate of $1.23 per share. The full-year FFO came in at $4.82 per share, which was in line with the consensus estimate. The revenue for the quarter was reported to be $136.5 million, which was also above the consensus estimate of $134.6 million. The company’s net income for the quarter was $35.5 million, compared to $32.9 million in the same quarter a year ago.
CTO’s Business Outlook
CTO’s management team also provided an outlook for the future. They mentioned that they expect to see continued growth in their portfolio, with an emphasis on value-add and opportunistic investments. They also stated that they expect to see rental rate growth in their markets, driven by strong demand and limited supply. Additionally, they mentioned that they are focused on reducing their debt levels and increasing their liquidity.
Analysts’ Questions and Management’s Responses
Several analysts asked questions during the call, and the management team provided detailed and polite responses. For example:
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Gaurav Mehta (Alliance Global Partners): “Can you discuss your thoughts on the current state of the multifamily market, and how you’re positioning your portfolio to take advantage of any opportunities?”
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John Albright (CTO): “We believe the multifamily market remains strong, with continued demand for rental housing. We’re positioning our portfolio to take advantage of this by focusing on value-add and opportunistic investments in markets with strong rental growth potential.”
Impact on Individual Investors
For individual investors, CTO’s strong financial performance and positive outlook could be a good sign. The company’s FFO growth and revenue growth are both above consensus estimates, indicating that the company is performing well. Additionally, the management team’s focus on reducing debt and increasing liquidity could be a positive sign for investors looking for a stable and growing real estate investment.
Impact on the World
On a larger scale, CTO’s strong financial performance and positive outlook for the multifamily market could be a good sign for the real estate industry as a whole. With continued demand for rental housing and limited supply, rental rates are likely to continue to rise, which could lead to increased profits for real estate companies and potentially even a housing market boom. However, it’s important to note that there are also risks, such as rising interest rates and economic uncertainty, that could impact the real estate market and CTO’s performance.
Conclusion
In conclusion, CTO Realty Growth, Inc.’s Fourth Quarter and Full Year 2024 Earnings Call provided positive news for the company, with strong financial performance and a positive outlook for the future. For individual investors, this could be a good sign, as the company’s focus on value-add and opportunistic investments and its efforts to reduce debt and increase liquidity could lead to stable and growing returns. On a larger scale, CTO’s strong performance and positive outlook for the multifamily market could be a good sign for the real estate industry as a whole, with continued demand for rental housing and limited supply driving rental rate growth and potentially even a housing market boom. However, it’s important to remember that there are also risks that could impact the real estate market and CTO’s performance, such as rising interest rates and economic uncertainty.
