Retail REIT CTO Realty Sells Non-Core Nevada Shopping Center To Reduce Debt
Portfolio Pulse from Lekha Gupta
CTO Realty Growth Inc (NYSE:CTO) has sold the Eastern Commons shopping center in Henderson, Nevada, for $18.2 million. The sale of the 129,600 square foot property, which had an exit cap rate of 7.4%, resulted in a gain of approximately $1.7 million. The proceeds will be used to repay part of the company's revolving unsecured credit facility. Following the sale, CTO has about $53.7 million in 1031 restricted cash accounts. The company's Q3 FY23 sales were $28.47 million, surpassing estimates, with core FFO per share at $0.47. As of September 30, CTO had $29.6 million in cash and equivalents. CTO shares rose 0.70% to $16.58.
November 22, 2023 | 4:13 pm
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POSITIVE IMPACT
CTO Realty Growth sold a non-core shopping center for $18.2M, aiming to reduce debt. Q3 sales exceeded expectations, and the stock price saw a modest increase.
The sale of the non-core asset is positive as it allows CTO to reduce debt, which is generally favorable for financial health and can be seen as a positive signal by investors. The Q3 sales beating estimates is another positive factor that could contribute to a short-term positive impact on the stock price. The recent price action reflects a modest positive investor response.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100