CTO Realty Growth: A High-Yield Dividend Stock with a Strong Buy Consensus Rating

CTO Realty Growth is a high-yield dividend stock with an 8.6% yield and a "Strong Buy" consensus rating from analysts. The REIT owns and manages high-quality retail properties across the US, with a focus on multi-tenant spaces anchored by essential businesses. Its strategy of acquiring high-potential properties and increasing value through leasing and redevelopment has enhanced income and built long-term value across its portfolio. CTO's operational performance remains solid, with strong leasing activity and a high occupancy rate.

If you're seeking reliable passive income, CTO Realty Growth (CTO) stands out as a compelling option. With an impressive 8.6% yield and a "Strong Buy" consensus rating from analysts, CTO offers a robust dividend payout along with potential for long-term capital appreciation [1].

CTO Realty Growth specializes in owning and managing high-quality retail properties across the United States. Its portfolio is characterized by multi-tenant spaces anchored by essential businesses such as grocery stores, lifestyle retailers, and service providers. This focus on stable tenants ensures consistent foot traffic and resilience in uncertain economic conditions [1].

The REIT's strategy involves acquiring high-potential properties and enhancing their value through leasing vacant space, raising below-market rents, and redeveloping key assets. This approach has been successful in boosting immediate income and building long-term value across the portfolio [1].

CTO's operational performance remains strong, as evidenced by its solid leasing activity. In the first quarter of 2025, the REIT signed over 112,000 square feet of new leases, renewals, and extensions at an average rent of $24.14 per square foot, which was 25% above its existing portfolio average. At the end of the latest quarter, CTO's portfolio was 93.8% leased and 91% occupied, with a pipeline of signed leases expected to contribute approximately $4 million in annual base rent in the back half of 2025 [1].

Moreover, CTO's recent acquisition of Ashley Park, a 559,000-square-foot open-air lifestyle center in the Newnan submarket of Atlanta, for $79.8 million, brings immediate scale and future income growth. The REIT has also been re-leasing anchor spaces vacated by bankrupt tenants, with management confident in achieving a 40% to 60% positive cash leasing spread from these re-leases [1].

Despite ongoing macroeconomic headwinds, CTO appears well-insulated due to its focus on high-growth markets, diverse tenant base, and well-located properties. The REIT's development plans, including progress on lease negotiations for its 10 acres of undeveloped land, are expected to serve as a strong growth engine into 2026 [1].

In summary, CTO Realty Growth's focus on high-quality tenants, properties in high-growth markets, strong occupancy rate, and a solid pipeline of lease commencements positions it well to deliver steady growth and support its dividend payouts. Wall Street analysts recommend a "Strong Buy" consensus rating on CTO Realty stock amid macro uncertainty [1].

References:
[1] https://www.barchart.com/story/news/33395283/seeking-passive-income-this-strong-buy-dividend-stock-yields-8-6