CTO Realty Growth pairs 12.8% guided 2026 Core FFO growth and 7.4% yield with a 9.7x valuation, as Sun Belt leasing and capital recycling offer meaningful upside.
Overview
CTO Realty Growth is a Winter Park, Florida-based REIT focused on multi-tenant open-air shopping, lifestyle, and power centers in high-growth Sun Belt markets. More than 96% of ABR comes from retail leases; complementary earnings come from external management of Alpine Income Property Trust and 9%–12% yielding structured real-estate investments. The portfolio benefits from affluent trade areas, with average household income of $137,000, and 77% of rent from top-30 U.S. markets. Q2 2026 revenue rose 16.5% year over year to $43.83 million; Core FFO per diluted share increased 18% to $0.53, AFFO reached $0.55, and shopping-center same-property NOI grew 10.1%. Occupancy was 95.4%, with approximately 75% anchor re-leasing spreads. Management raised 2026 Core FFO guidance to $2.09–$2.13 per share and AFFO to $2.21–$2.25, implying 12.8% and 13.2% growth, respectively. **The shares trade at 9.7x 2026 Core FFO and yield 7.4%, versus a peer multiple near 13.5x.** Near-term catalysts include converting the $6.1–$6.2 million SNO pipeline, completing outparcel projects, and sustained acquisition and leasing execution; rate stabilization could support multiple expansion.