WINTER PARK, Fla. - CTO Realty Growth, Inc. (NYSE: CTO), a real estate investment trust, today initiated a public offering of additional shares of its 6.375% Series A Cumulative Redeemable Preferred Stock, each with a liquidation preference of $25.00. This issuance is an addition to the 2,978,808 shares currently outstanding, following a recent repurchase of 21,192 shares by the company.
The proceeds from the offering are earmarked for general corporate and working capital purposes. This includes potential property acquisitions, commercial loans and investment opportunities, and the repayment of existing debt under the company's credit agreement.
CTO's outstanding shares of Series A Preferred Stock, as well as the new shares issued, will be listed on the New York Stock Exchange under the symbol CTO PrA. Raymond James & Associates, Inc. is serving as the book-running manager for this offering.
The offering is being conducted under an existing shelf registration statement on Form S-3 filed with the Securities and Exchange Commission and will only be made through a prospectus supplement and the accompanying prospectus. Interested parties can obtain these documents from Raymond James & Associates, Inc.
CTO Realty Growth owns and operates a portfolio of retail-based properties primarily in high-growth markets across the United States and has a significant interest in Alpine Income Property Trust, Inc. (NYSE: PINE), a net lease REIT.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor will there be any sale of these securities in any state or jurisdiction where such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of any such state or jurisdiction.
The company has made forward-looking statements regarding the offering and the use of net proceeds, which are subject to market conditions and other factors that could cause actual results to differ materially from those anticipated.
This news article is based on a press release statement from CTO Realty Growth, Inc.
InvestingPro Insights
As CTO Realty Growth, Inc. (NYSE: CTO) expands its capital through a public offering of its Series A Cumulative Redeemable Preferred Stock, investors may consider the company's financial health and market position to assess the potential impact of this move.
With a market capitalization of $384.1 million and a substantial dividend yield of 9.07%, CTO stands out for its commitment to returning value to shareholders. This is further emphasized by the fact that the company has maintained dividend payments for an impressive 49 consecutive years, according to an InvestingPro Tip.
Despite the company's high earnings multiple, with a P/E ratio of 492.65 and an adjusted P/E ratio for the last twelve months as of Q4 2023 at 624.11, CTO's share price stability is reflected in its low price volatility, another InvestingPro Tip. This could be a reassuring factor for investors considering participation in the preferred stock offering, as it suggests a level of resilience in the company's stock price.
The financial data also highlights a robust revenue growth of 32.55% for the last twelve months as of Q4 2023, which might counterbalance concerns about the anticipated sales decline in the current year. This growth is backed by a strong gross profit margin of 72.34%, indicating efficient operations and a healthy financial buffer for the company.
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