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What's in Store for CTO Realty Growth (CTO) in Q3 Earnings?
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CTO Realty Growth, Inc. (CTO - Free Report) is slated to report third-quarter 2022 earnings on Oct 27 after market close. The company’s quarterly results are likely to reflect growth in revenues and funds from operations (FFO) per share.
In the last reported quarter, this real estate investment trust (REIT) reported adjusted FFO per share of $1.48, well ahead of the Zacks Consensus Estimate of 44 cents. Results reflected better-than-expected revenues.
CTO has a decent surprise history. Over the trailing four quarters, it beat estimates on each occasion, the average beat being 75.49%. This is depicted in the graph below:
Let’s see how things have shaped up before this announcement.
Factors at Play
CTO Realty, which owns and operates a portfolio of high-quality, retail-based properties positioned mainly in higher growth markets in the United States, is expected to have gained from improvements in the retail real estate market. The company is also expected to have benefited from its capital recycling and expansion efforts.
Even amid macroeconomic uncertainty, retail real estate markets continued to witness strong demand in the third quarter of 2022, helping occupancy levels. With consumers’ increased preference for an in-person shopping experience, tenants have continued their quest for high-quality store locations amid limited supply.
The Zacks Consensus Estimate for revenues from income properties for the third quarter is currently pegged at $17.84 million, up from the $16.37 million reported in the prior quarter and $13.73 million in the year-ago period.
Estimates for management fee income presently stand at $0.95 million, the same as reported in the prior quarter and slightly up from the $0.94 million reported in the year-ago quarter.
However, the Zacks Consensus Estimate for interest income from commercial loans and investments is presently pegged at $0.98 million, down from the $1.29 million reported in the prior quarter but up from the $0.73 million reported in the year-ago period.
The Zacks Consensus Estimate for quarterly revenues is pegged at $20.5 million. This suggests an increase of 23.64% from the year-earlier quarter’s reported tally.
Before the quarterly earnings release, analysts do not seem optimistic about the company’s prospects as the Zacks Consensus Estimate for the July-September quarter’s FFO per share has remained unrevised at 43 cents over the past month. However, it suggests year-over-year growth of 19.4%.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict a surprise in terms of FFO per share for CTO Realty this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
CTO Realty currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are some stocks from the REIT sector — Agree Realty Corporation (ADC - Free Report) , Extra Space Storage Inc. (EXR - Free Report) and Public Storage (PSA - Free Report) — that you may want to consider as our model shows that these have the right combination of elements to report a surprise this quarter.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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What's in Store for CTO Realty Growth (CTO) in Q3 Earnings?
CTO Realty Growth, Inc. (CTO - Free Report) is slated to report third-quarter 2022 earnings on Oct 27 after market close. The company’s quarterly results are likely to reflect growth in revenues and funds from operations (FFO) per share.
In the last reported quarter, this real estate investment trust (REIT) reported adjusted FFO per share of $1.48, well ahead of the Zacks Consensus Estimate of 44 cents. Results reflected better-than-expected revenues.
CTO has a decent surprise history. Over the trailing four quarters, it beat estimates on each occasion, the average beat being 75.49%. This is depicted in the graph below:
CTO Realty Growth, Inc. Price and EPS Surprise
CTO Realty Growth, Inc. price-eps-surprise | CTO Realty Growth, Inc. Quote
Let’s see how things have shaped up before this announcement.
Factors at Play
CTO Realty, which owns and operates a portfolio of high-quality, retail-based properties positioned mainly in higher growth markets in the United States, is expected to have gained from improvements in the retail real estate market. The company is also expected to have benefited from its capital recycling and expansion efforts.
Even amid macroeconomic uncertainty, retail real estate markets continued to witness strong demand in the third quarter of 2022, helping occupancy levels. With consumers’ increased preference for an in-person shopping experience, tenants have continued their quest for high-quality store locations amid limited supply.
The Zacks Consensus Estimate for revenues from income properties for the third quarter is currently pegged at $17.84 million, up from the $16.37 million reported in the prior quarter and $13.73 million in the year-ago period.
Estimates for management fee income presently stand at $0.95 million, the same as reported in the prior quarter and slightly up from the $0.94 million reported in the year-ago quarter.
However, the Zacks Consensus Estimate for interest income from commercial loans and investments is presently pegged at $0.98 million, down from the $1.29 million reported in the prior quarter but up from the $0.73 million reported in the year-ago period.
The Zacks Consensus Estimate for quarterly revenues is pegged at $20.5 million. This suggests an increase of 23.64% from the year-earlier quarter’s reported tally.
Before the quarterly earnings release, analysts do not seem optimistic about the company’s prospects as the Zacks Consensus Estimate for the July-September quarter’s FFO per share has remained unrevised at 43 cents over the past month. However, it suggests year-over-year growth of 19.4%.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict a surprise in terms of FFO per share for CTO Realty this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
CTO Realty currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are some stocks from the REIT sector — Agree Realty Corporation (ADC - Free Report) , Extra Space Storage Inc. (EXR - Free Report) and Public Storage (PSA - Free Report) — that you may want to consider as our model shows that these have the right combination of elements to report a surprise this quarter.
Agree Realty Corporation, slated to release quarterly numbers on Nov 1, has an Earnings ESP of +0.52% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Extra Space Storage, scheduled to report third-quarter earnings on Nov 1, currently has an Earnings ESP of +1.31% and carries a Zacks Rank of 3.
Public Storage, slated to release quarterly numbers on Nov 1, has an Earnings ESP of +1.34% and carries a Zacks Rank of 3 at present.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.