WINTER PARK, Fla. - CTO Realty Growth, Inc. (NYSE: CTO), a real estate investment trust, has expanded its footprint in the Orlando market with the acquisition of Marketplace at Seminole Towne Center, a retail power center in Sanford, Florida. The property was purchased for $68.7 million, a transaction that falls within the company's current guidance for initial cash yields.
John P. Albright, President and CEO of CTO Realty Growth, expressed satisfaction with the acquisition, noting the center's prime location and the potential for income growth due to below-market rents. Albright highlighted the strategic importance of the property, which is anchored by major retailers such as Burlington (NYSE:BURL), Marshalls, and Target (NYSE:TGT), and its alignment with the company's long-term value goals for shareholders.
Marketplace at Seminole Towne Center boasts a 98% occupancy rate and is situated on a 41-acre site along major highways I-4 and SR 417. The acquisition not only increases CTO's exposure to the high-growth Orlando market but also makes it the company's fourth-largest market. With a three-mile radius population of over 60,000 and an average household income of around $118,000, the location is poised for continued consumer traffic and business.
The purchase was financed through a combination of restricted cash from previous property dispositions, available cash, and draws from CTO's unsecured revolving credit facility. A portion of the acquisition was structured as a reverse like-kind exchange, anticipating future income property dispositions.
CTO Realty Growth, Inc. is known for owning and operating a portfolio of retail-based properties in higher-growth markets across the United States. The company also has a significant interest in Alpine Income Property Trust, Inc. (NYSE: PINE), a net lease REIT.
This acquisition announcement is based on a press release statement.
InvestingPro Insights
CTO Realty Growth's recent acquisition of Marketplace at Seminole Towne Center reflects its strategic approach to expanding its portfolio in high-growth markets. The company's financial health and investment potential are key factors for investors considering CTO shares. Here are some insights based on real-time data from InvestingPro:
With a market capitalization of $386.15 million, CTO Realty Growth is positioned as a significant player in the real estate investment sector. The company's aggressive share buyback program, as noted in one of the InvestingPro Tips, demonstrates management's confidence in the company's value and could be a positive signal for investors.
Another notable metric is CTO's dividend yield, currently at 9.02%, which is particularly attractive for income-focused investors. This aligns with another InvestingPro Tip highlighting the company's history of maintaining dividend payments for 49 consecutive years, showcasing its commitment to returning value to shareholders.
However, potential investors should be aware of the company's high earnings multiple, with a P/E ratio of 497.35 and an adjusted P/E ratio for the last twelve months as of Q4 2023 at 632.31. This suggests that the stock is trading at a premium compared to earnings, which could be a point of consideration for value-conscious investors.
For those interested in a deeper analysis, there are additional InvestingPro Tips available that provide further insights into CTO Realty Growth's performance and outlook. To explore these tips and more, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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