CTO Realty Growth: Buy this 9%‑yield while it’s undervalued

Investment idea: CTO Realty Growth, Inc. (NYSE: CTO) is being positioned as a strong buy opportunity thanks to a compelling dividend yield of approximately 9 %, while trading at a low valuation compared with its peer group. The REIT owns and operates high‑quality open‑air retail shopping centers, principally in fast‑growing U.S. markets, and is externally managed. Its portfolio is benefitting from leasing momentum and operational improvements, yet its share price has remained depressed. Key financials and valuation: The forward price to funds from operations (P/FFO) multiple is around 10× (i.e., trading at roughly a 10× multiple) which is relatively low for the sector. Dividend yield ranges in the high single‑digits (8.8 % and above) depending on source/time. Dividend coverage appears reasonably strong via AFFO (adjusted funds from operations) rather than just earnings, making the elevated yield possibly sustainable. Operational catalysts: The company is generating “leasing momentum” as vacancies are filled and rents are resetting higher in its retail centers. It is executing share buy‑backs and other shareholder‑friendly capital allocation moves which help support value beyond dividends. Risks to watch: As a retail‑oriented REIT, CTO’s performance may still be exposed to broader retail headwinds, tenant bankruptcies, or shifts in consumer behavior. High dividend yield sometimes signals market concerns: while coverage is solid, any deterioration in fundamentals could threaten the payout. Leverage and REIT sector valuations can be sensitive to interest‑rate movements; given the yield level, future capital or operational surprises could be material. Bottom line: For income‑seeking investors willing to accept some REIT‑sector risk, CTO Realty Growth offers an attractive entry point — a nearly 9 % yield, solid operational recovery, and valuation discount relative to peers. But the high yield also comes with elevated risk, so monitoring lease trends and payout coverage remains essential. #REITInvesting #HighYieldStocks #ValueOpportunity #DividendGrowth #SlimScan #GrowthStocks #CANSLIM