A US-based REIT focused on single-family rental properties that leverages data-driven underwriting to deliver consistent cash flow and operational efficiency in the affordable housing sector.
Investors may favor CTO for its consistent revenue expansion over five years, reaching $149.5M in 2025, alongside a healthy cash balance of $41.1M that supports ongoing acquisitions or debt paydown. The return to profitability and strong operating cash flow suggest the company has navigated recent headwinds effectively, positioning it for stable long-term growth in the essential affordable housing market.
Concerns persist regarding the large retained earnings deficit of $184.9M and significant non-operating losses that could weigh on future earnings per share if not addressed. The heavy capital expenditure reflected in cash flow from investing of -$71.5M may strain liquidity if financing conditions tighten, potentially limiting the ability to grow the portfolio without further dilution or debt issuance.
CTO Realty Growth Inc. is a leading independent real estate investment trust specializing in single-family rental properties across the United States. The company generates revenue primarily through leasing residential units to tenants while managing operations via its proprietary technology platform and experienced property management teams. Serving diverse markets nationwide, the firm focuses on providing stable housing solutions for renters seeking long-term affordability and flexibility.
The company demonstrated a robust recovery in 2025 with net profit surging to $10.1M from a loss in 2024, driven by significant operational cash flow of $64.6M despite substantial investing outflows. Operating expenses remained contained at $77.6M against revenue growth to $149.5M, highlighting effective cost control and the benefits of portfolio scale.
The affordable single-family rental industry is experiencing structural growth as household formation outpaces new construction, creating demand for managed rental solutions. Investors in this sector look for REITs with sustainable business models that can deliver yields above traditional public market averages while providing essential housing stability.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $82.3M | $109.1M | $124.5M | $149.5M |
| Cost of Revenue | $22.9M | $30.2M | $33.2M | $37.9M |
| Gross Profit | $59.5M | $78.9M | $91.3M | $111.6M |
| Operating Expenses | $48.8M | $52.4M | $73.7M | $77.6M |
| Operating Income | $10.7M | $26.5M | $17.6M | $34.0M |
| G&A | $12.9M | $14.2M | $16.3M | $18.5M |
| Stock-Based Comp | $3.2M | $3.7M | $3.6M | $4.2M |
| D&A | $28.9M | $44.2M | $65.0M | $60.0M |
| Depreciation | $16.6M | $25.7M | $33.5M | $35.2M |
| Amortization | $12.3M | $18.4M | $31.6M | $24.8M |
| Other OpEx | $35.9M | $38.2M | $57.4M | $59.1M |
| Non-Operating Income | $-10.3M | $-20.4M | $-19.9M | $-23.5M |
| Pre-Tax Income | $328.0K | $6.1M | $-2.3M | $10.5M |
| Income Tax | $-2.8M | $604.0K | $-339.0K | $446.0K |
| Continuing Ops | $3.2M | $5.5M | $-2.0M | $10.1M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $3.2M | $5.5M | $-2.0M | $10.1M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $3.2M | $5.5M | $-2.0M | $10.1M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Cash & Equivalents | $19.3M | $10.2M | $9.0M | $6.5M |
| Operating Leases | $63.0K | $422.0K | $305.0K | $241.0K |
| Total Assets | $986.5M | $989.7M | $1.18B | $1.26B |
| Total Liabilities | $481.8M | $532.1M | $568.8M | $696.6M |
| Shareholders' Equity | $504.8M | $457.5M | $612.8M | $567.3M |
| Retained Earnings | $316.3M | $281.9M | $232.1M | $184.9M |
| AOCI | $15.8M | $6.9M | $12.5M | $-405.0K |
| Total L&E | $986.5M | $989.7M | $1.18B | $1.26B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $3.2M | $5.5M | $-2.0M | $10.1M |
| Non-Cash Adjustments | $37.9M | $39.9M | $55.2M | $47.9M |
| Working Capital Changes | $15.0M | $976.0K | $16.1M | $6.6M |
| Cash from Operations | $56.1M | $46.4M | $69.3M | $64.6M |
| Cash from Investing | $-267.6M | $-52.6M | $-242.2M | $-71.5M |
| Debt Issuances | $380.5M | $148.8M | $366.0M | $405.0M |
| Debt Repayments | $233.8M | $99.6M | $342.0M | $292.3M |
| Share Buybacks | $2.8M | $6.4M | $664.0K | $9.4M |
| Dividends Paid | $28.9M | $34.3M | $40.3M | $49.0M |
| Cash from Financing | $201.4M | $2.8M | $172.3M | $30.7M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-10.2M | $-3.4M | $-458.0K | $23.8M |
| Beginning Cash | $31.3M | $21.2M | $17.8M | $17.4M |
| Ending Cash | $21.2M | $17.8M | $17.4M | $41.1M |
Affordable Single-Family Rentals, Value-Add Properties, and Market-Value Assets; Revenue derived from monthly lease payments, rent escalations, and value-added services such as property management fees and utility management.
Rising interest rates impacting refinancing costs and debt service coverage ratios, potential regulatory changes in zoning or rent control laws affecting supply dynamics, and economic slowdowns that could increase tenant turnover or default rates on the affordable housing segment.
Proprietary underwriting technology that identifies high-yield rental markets, a diversified portfolio of over 12,000 units providing risk mitigation against local market downturns, and strong operating margins supported by disciplined expense management.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.