CTO Realty Growth Declares Dividends For the First Quarter 2024
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Insights
The announcement of CTO Realty Growth's quarterly cash dividend of $0.38 per share corresponds to an annualized yield of approximately 9.3%, based on the recent closing price of the company's stock. This yield is significantly higher than the average dividend yield of the S&P 500, which is typically around 2%. High dividend yields can be attractive to income-focused investors, but they may also signal that the market perceives higher risk with the company's stock or that the stock price has recently decreased.
From a financial perspective, the sustainability of such a high yield is critical. It's essential to analyze the company's payout ratio, which indicates the proportion of earnings paid out as dividends to shareholders. A payout ratio that exceeds earnings might not be sustainable in the long term. Investors should also consider the company's earnings growth, as this will impact the ability to maintain or increase dividend payments in the future.
CTO Realty Growth's decision to declare a quarterly cash dividend could be perceived as a signal of confidence in its financial stability and future earnings potential. Dividends are often used by companies as a tool to return value to shareholders and can make a stock more attractive to potential investors. However, the real estate market is subject to cyclical fluctuations and external factors such as interest rates, economic growth and consumer confidence can impact the performance of real estate investment trusts (REITs).
Given that the dividend announcement is for the first quarter of 2024, it is also important to consider the broader economic context, including any forecasts for the real estate market and the economy as a whole. If the economy is expected to enter a downturn, this could affect the occupancy rates and rental incomes for REITs, which in turn could challenge their ability to maintain high dividend yields.
CTO Realty Growth operates as a REIT, which requires it to distribute at least 90% of its taxable income to shareholders in the form of dividends. The high annualized yield of 9.3% is noteworthy in the REIT sector, but it's crucial to evaluate the underlying asset quality and the geographic and sector diversification of the company's real estate portfolio. The performance of the assets within the portfolio will have a direct impact on the company's revenue streams and, by extension, its dividend-paying capacity.
Investors should assess the company's debt profile and its interest coverage ratio, which indicates how easily a company can pay interest on outstanding debt. A strong balance sheet with manageable debt levels is essential for REITs to navigate through market volatility and continue to provide robust dividends to shareholders.
WINTER PARK, Fla., Feb. 20, 2024 (GLOBE NEWSWIRE) -- CTO Realty Growth, Inc. (NYSE: CTO) (the “Company” or “CTO”) announced today that its Board of Directors has authorized, and the Company has declared a quarterly cash dividend of
The Common Stock Cash Dividend is payable on March 28, 2024, to stockholders of record as of the close of business on March 14, 2024, and the ex-dividend date for the Common Stock Cash Dividend is March 13, 2024.
The Board of Directors also authorized, and the Company has declared, a quarterly cash dividend of
About CTO Realty Growth, Inc.
CTO Realty Growth, Inc. is a publicly traded real estate investment trust that owns and operates a portfolio of high-quality, retail-based properties located primarily in higher growth markets in the United States. CTO also externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE), a publicly traded net lease REIT.
We encourage you to review our most recent investor presentation and supplemental financial information, which is available on our website at www.ctoreit.com.
Safe Harbor
Certain statements contained in this press release (other than statements of historical fact) are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can typically be identified by words such as “believe,” “estimate,” “expect,” “intend,” “anticipate,” “will,” “could,” “may,” “should,” “plan,” “potential,” “predict,” “forecast,” “project,” and similar expressions, as well as variations or negatives of these words.
Although forward-looking statements are made based upon management’s present expectations and reasonable beliefs concerning future developments and their potential effect upon the Company, a number of factors could cause the Company’s actual results to differ materially from those set forth in the forward-looking statements. Such factors may include, but are not limited to: the Company’s ability to remain qualified as a REIT; the Company’s exposure to U.S. federal and state income tax law changes, including changes to the REIT requirements; general adverse economic and real estate conditions; macroeconomic and geopolitical factors, including but not limited to inflationary pressures, interest rate volatility, distress in the banking sector, global supply chain disruptions, and ongoing geopolitical war; credit risk associated with the Company investing in structured investments; the ultimate geographic spread, severity and duration of pandemics such as the COVID-19 Pandemic and its variants, actions that may be taken by governmental authorities to contain or address the impact of such pandemics, and the potential negative impacts of such pandemics on the global economy and the Company’s financial condition and results of operations; the inability of major tenants to continue paying their rent or obligations due to bankruptcy, insolvency or a general downturn in their business; the loss or failure, or decline in the business or assets of PINE; the completion of 1031 exchange transactions; the availability of investment properties that meet the Company’s investment goals and criteria; the uncertainties associated with obtaining required governmental permits and satisfying other closing conditions for planned acquisitions and sales; and the uncertainties and risk factors discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and other risks and uncertainties discussed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission.
There can be no assurance that future developments will be in accordance with management’s expectations or that the effect of future developments on the Company will be those anticipated by management. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to update the information contained in this press release to reflect subsequently occurring events or circumstances.
| Contact: | Matthew M. Partridge Senior Vice President, Chief Financial Officer, and Treasurer (407) 904-3324 mpartridge@ctoreit.com |
FAQ
What is the quarterly cash dividend declared by CTO Realty Growth, Inc. for common stock?
What is the annualized yield for the common stock cash dividend declared by CTO Realty Growth, Inc.?
When will the common stock cash dividend be payable to stockholders?
What is the ex-dividend date for the common stock cash dividend declared by CTO Realty Growth, Inc.?
How much is the quarterly cash dividend for CTO Realty Growth, Inc.'s 6.375% Series A Cumulative Redeemable Preferred Stock?
When will the quarterly cash dividend for the preferred stock be paid to stockholders?
