CTO Realty: Long Growth Runway And Valuation Make Them A Buy
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CTO Realty Growth is considered a buy due to its attractive valuation and growth potential. The REIT's forward P/AFFO multiple is significantly lower than the sector median, and its strategic acquisitions in Sun Belt markets support its growth. Despite higher leverage, management's deleveraging efforts and a solid balance sheet are positive indicators.
December 06, 2024 | 12:30 pm
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CTO Realty Growth is recommended as a buy due to its low forward P/AFFO multiple and strategic acquisitions in high-growth markets. The company's efforts to manage leverage and a solid balance sheet further support its growth outlook.
CTO Realty Growth's forward P/AFFO multiple of 10.34x is well below the sector median, indicating an attractive valuation. The company's strategic acquisitions in high-growth Sun Belt markets and increased investment activity support its growth potential. Despite higher leverage, management's efforts to deleverage and a solid balance sheet are positive indicators for future growth, as reflected in the raised FFO and AFFO guidance for 2024.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100