CTO Realty Growth: The 10x REIT Hiding In The Discount Aisle

Naples Investor 371 Followers Follow Summary CTO Realty Growth delivered a robust quarter: 16.5% revenue growth, 17.8% core FFO/share growth, and raised guidance across four metrics. CTO trades at a 10.4x 2026 core FFO multiple and a 6.92% dividend yield, well below peer REIT multiples of 13–19x, presenting a persistent valuation gap. The next 18 months of growth are largely contracted, driven by $6.3M signed-not-open rent and a strong leasing pipeline, with capital recycling at attractive spreads. I rate CTO a buy: a good business at a fair price with 16% upside to my $25 target, but risks include 2027 refinancing and 15% exposure to credit assets. Editor's note: Seeking Alpha is proud to welcome Naples Investor as a new contributing analyst. You can become one too! Share your best investment idea by submitting your article for review to our editors. Get published, earn money, and unlock exclusive SA Premium access. This article was written by Naples Investor 371 Followers Follow Naples Investor is a middle-market private company business executive with over 35 years experience in finance and accounting with almost 20 years in the top finance or accounting role. I have an MBA in Finance from one of the top 5 Finance programs in the USA as well as a CMA (inactive). Currently, I am consulting, mostly in sell-side due diligence in private equity.My investment style is long-term oriented with an eclectic mix between growth stocks and conservative dividend-paying equities. I've been fortunate to have been featured in two Wall Street Journal articles in the past four years. Analyst’s Disclosure: I/we have a beneficial long position in the shares of CTO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.