CTO Realty Growth, Inc. (NYSE:CTO), a real estate investment trust, has announced the initiation of an at-the-market offering program. As per the announcement made today, the company may periodically sell shares of its 6.37% Series A Cumulative Redeemable Preferred Stock, with a liquidation preference of $25 per share, aiming to raise up to $24.5 million in gross proceeds.
The preferred shares will be sold through an array of sales agents, including BMO Capital Markets Corp., B. Riley Securities, Inc., and several others. These sales agents are authorized to sell the shares on the New York Stock Exchange, among other methods, at market prices or negotiated prices close to market rates.
The sales agents are entitled to a commission not exceeding 2% of the gross sales price for each share sold under their respective equity distribution agreements.
The offering of these shares will be made under a prospectus supplement and a base prospectus, which are part of the company's shelf registration statement on Form S-3.
CTO Realty Growth, Inc., based in Winter Park, Florida, has structured this offering to provide flexibility in capital raising, which may be utilized for various corporate purposes. The company has not specified the exact use of the proceeds from this offering in the announcement.
In other recent news, CTO Realty Growth exhibited a robust performance in the second quarter of 2024, marked by significant leasing activity and promising investment prospects.
The company signed new leases, renewals, and extensions totaling 79,000 square feet at an average rate of $25.87 per square foot, particularly strong in Atlanta and Richmond. CTO Realty Growth ended the quarter with a healthy physical occupancy rate of 92.6% and leased occupancy of 94.6%.
In light of these developments, the company has revised its investment outlook for 2024 to between $200 million and $250 million and has increased its core FFO guidance by 12% and AFFO by 11%. The company is also in negotiations for additional leases in Atlanta and Plano and has a property under a sales contract in Utah.
InvestingPro Insights
CTO Realty Growth, Inc. (NYSE:CTO) has taken a strategic step to enhance its financial flexibility with the initiation of an at-the-market offering program. According to real-time data from InvestingPro, CTO Realty Growth boasts a market capitalization of $437.9 million and is trading at a P/E ratio of 38. This is notable as it indicates the company's current earnings valuation in the market. Additionally, the company has shown a robust revenue growth of 19.62% over the last twelve months as of Q2 2024, which may appeal to investors looking for companies with strong top-line growth.
InvestingPro Tips highlight that CTO Realty Growth has been trading at a high earnings multiple, which could suggest market optimism about its future growth potential. Moreover, the company has maintained dividend payments for an impressive 49 consecutive years, with a current dividend yield of 8.22%, reflecting a strong commitment to returning value to shareholders. For those interested in dividend-paying stocks, CTO's consistent dividend history could be a significant factor in investment decisions. There are additional InvestingPro Tips available that provide deeper insights into CTO's financial health and prospects, which can be accessed for more informed investment strategies.
As CTO Realty Growth navigates the market conditions to complete its offering, these financial metrics and InvestingPro Tips can offer investors a clearer picture of the company's performance and potential. With a fair value estimate of $23.12 according to InvestingPro, the company's shares may have room to grow, signaling a potential opportunity for investors.
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