CTO Realty Growth: I Almost Bought It Until I Saw This

Impact · against what's priced in

CTO Realty Growth presents a conflict between attractive valuation/yield and deteriorating earnings quality. While embedded rent growth provides a tailwind, the cash-basis underfunding of the dividend creates a risk of a payout cut that likely outweighs the current P/FFO discount.

CTO−0.10

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In context

The 8.3% yield and embedded rent growth are offset by a cash-basis payout ratio exceeding 100% due to excluded CapEx, increasing the risk of a dividend cut.

Read from the article alone

• cash flow
• valuation
• CTO
• dividend yield
• p ffo
• real estate
• reits

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