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CTO Realty Boosts Portfolio With Ashley Park Acquisition in Atlanta
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CTO Realty Growth, Inc. (CTO - Free Report) recently announced the acquisition of Ashley Park in Atlanta, GA, for $79.8 million. The purchase of this 559,000-square-foot lifestyle shopping center aligns with the company's strategy to enhance its presence in Atlanta, which is the company’s largest market.
Situated on 60 acres in the Newnan submarket of Atlanta, this lifestyle center benefits from its prime location along I-85, just south of Hartsfield-Jackson Airport. At 93% occupancy, the property attracts more than 6 million annual visits and is anchored by major retailers such as Dick’s Sporting Goods (DKS - Free Report) , Best Buy (BBY - Free Report) and Dillard’s (DDS - Free Report) , providing a reliable rental income stream.
Per John P. Albright, the president and chief executive officer of CTO Realty Growth, “approximately 82% of our annual base rent is now derived from assets located in Georgia, Florida, Texas, or North Carolina.” He further noted that with this acquisition, Dick’s Sporting Goods became the company’s fifth largest tenant.
This acquisition expands CTO Realty’s portfolio by 12%, bringing the total to 5.2 million square feet. With CTO Realty purchasing the property at a cost below replacement value and with below-market rents, this REIT has a scope to enhance long-term value through strategic leasing and mark-to-market rent adjustments.
Final Thoughts on CTO Realty Stock
CTO Realty, which manages and owns premium open-air shopping centers situated in the rapidly growing Southeast and Southwest regions of the United States, completed $330.8 million of investments at a weighted average initial cash yield of 9.3% in 2024.
CTO Realty is also experiencing healthy leasing activity and signed 70 leases totaling 452,301 square feet during 2024. On a comparable basis, CTO executed 52 leases covering a total of 352,359 square feet, with an average cash base rent of $23.36 per square foot, up from the previous average of $18.99 per square foot, reflecting a 23% increase in comparable growth.
However, broader market concerns remain. Potential shifts in trade policies could worsen inflation, restraining consumer spending. The inflationary impact of tariffs and other policies may prompt the Federal Reserve to keep interest rates high for a prolonged period, adversely affecting interest-sensitive retail REITs.
Shares of CTO Realty have declined 2% over the past six months, which is slightly narrower than the real estate market’s fall of 2.2%.
Image: Bigstock
CTO Realty Boosts Portfolio With Ashley Park Acquisition in Atlanta
CTO Realty Growth, Inc. (CTO - Free Report) recently announced the acquisition of Ashley Park in Atlanta, GA, for $79.8 million. The purchase of this 559,000-square-foot lifestyle shopping center aligns with the company's strategy to enhance its presence in Atlanta, which is the company’s largest market.
Situated on 60 acres in the Newnan submarket of Atlanta, this lifestyle center benefits from its prime location along I-85, just south of Hartsfield-Jackson Airport. At 93% occupancy, the property attracts more than 6 million annual visits and is anchored by major retailers such as Dick’s Sporting Goods (DKS - Free Report) , Best Buy (BBY - Free Report) and Dillard’s (DDS - Free Report) , providing a reliable rental income stream.
Per John P. Albright, the president and chief executive officer of CTO Realty Growth, “approximately 82% of our annual base rent is now derived from assets located in Georgia, Florida, Texas, or North Carolina.” He further noted that with this acquisition, Dick’s Sporting Goods became the company’s fifth largest tenant.
This acquisition expands CTO Realty’s portfolio by 12%, bringing the total to 5.2 million square feet. With CTO Realty purchasing the property at a cost below replacement value and with below-market rents, this REIT has a scope to enhance long-term value through strategic leasing and mark-to-market rent adjustments.
Final Thoughts on CTO Realty Stock
CTO Realty, which manages and owns premium open-air shopping centers situated in the rapidly growing Southeast and Southwest regions of the United States, completed $330.8 million of investments at a weighted average initial cash yield of 9.3% in 2024.
CTO Realty is also experiencing healthy leasing activity and signed 70 leases totaling 452,301 square feet during 2024. On a comparable basis, CTO executed 52 leases covering a total of 352,359 square feet, with an average cash base rent of $23.36 per square foot, up from the previous average of $18.99 per square foot, reflecting a 23% increase in comparable growth.
However, broader market concerns remain. Potential shifts in trade policies could worsen inflation, restraining consumer spending. The inflationary impact of tariffs and other policies may prompt the Federal Reserve to keep interest rates high for a prolonged period, adversely affecting interest-sensitive retail REITs.
Shares of CTO Realty have declined 2% over the past six months, which is slightly narrower than the real estate market’s fall of 2.2%.
Image Source: Zacks Investment Research
CTO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.