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• It's like a diversified commercial landlord, similar to Federal Realty Investment Trust (FRT), that also holds a significant ownership stake in a net lease real estate company like Realty Income (O).
• Think of it as a broad commercial property owner, somewhat like Regency Centers (REG), that also has a major investment in a specific net lease landlord like W.P. Carey (WPC).

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CTO Realty Growth's major products/services are:

• Income Property Ownership and Management: The company directly owns and manages a diversified portfolio of approximately 2.4 million square feet of income-generating real estate properties across the United States.
• Real Estate Investment Trust (REIT) Equity Investment: The company holds a significant strategic equity interest (approximately 23.5%) in Alpine Income Property Trust, Inc. (PINE), a publicly traded net lease REIT.

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Major Customers of CTO Realty Growth (CTO)

CTO Realty Growth (CTO) is a real estate company that owns a diversified portfolio of income properties, totaling approximately 2.4 million square feet. As such, its customers are the tenants that lease commercial space within these properties across various markets in the United States.

Due to the diversified nature of its tenant base, CTO Realty Growth does not publicly disclose any single tenant that accounts for 10% or more of its total revenues. Therefore, no individual "major customer" companies are named in its public filings. Instead, the company serves a broad range of commercial tenants, which can be categorized as follows:

• Retailers, including various shops, service providers, and potentially larger retail formats depending on the property type.
• Restaurants and other dining establishments.
• Office tenants, encompassing professional service firms (e.g., legal, accounting), financial institutions, and medical offices.

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John P. Albright, President and Chief Executive Officer

Mr. Albright joined CTO Realty Growth in August 2011 as President and Chief Executive Officer. Prior to his tenure at CTO, he served as the Managing Director of Archon Capital, a Goldman Sachs Company, where he was involved with investing on behalf of the Goldman Sachs Real Estate Mezzanine Partners Fund. Before Archon Capital, Mr. Albright held a similar position with Morgan Stanley and Crescent Real Estate Equities. His background includes managing significant real estate investment entities, including those potentially backed by private equity through Goldman Sachs.

Philip R. Mays, Senior Vice President, Chief Financial Officer and Treasurer

Mr. Mays was appointed Senior Vice President, Chief Financial Officer, and Treasurer of CTO Realty Growth, effective June 17, 2024. He most recently held the position of Chief Financial Officer at Shadowbox Studios from September 2021 to February 2024. Before Shadowbox Studios, Mr. Mays served as Chief Financial Officer and Executive Vice President of Cedar Realty Trust, Inc., a NYSE-listed retail REIT, from June 2011 to September 2021. His departure from Cedar Realty Trust coincided with the company's exploration of strategic alternatives and preceded its eventual sale. Earlier in his career, he was Chief Accounting Officer and Vice President of Finance of Federal Realty Investment Trust, another NYSE-listed retail REIT, from May 2005 to June 2011. Mr. Mays also spent seven years as an accountant at Ernst & Young LLP, supervising audits and assisting real estate, construction, and hospitality clients, including public REITs.

Lisa M. Vorakoun, Senior Vice President and Chief Accounting Officer

Ms. Vorakoun has served as CTO Realty Growth's Senior Vice President and Chief Accounting Officer since July 2017. She initially joined the company in 2013 as Controller, managing its accounting and tax functions. Her career began at James Moore & Co., a regional accounting and consulting firm, where she managed audit clients across various industries.

Daniel E. Smith, Senior Vice President, General Counsel and Corporate Secretary

Mr. Smith joined CTO Realty Growth in 2014, serving as the company's general counsel and corporate secretary. Prior to his role at CTO, he was Vice President-Hospitality and Vice President and Associate General Counsel at Goldman Sachs & Co. He also spent ten years at Crescent Real Estate Equities, Ltd., where his most recent position was Senior Vice President and General Counsel.

Steven Robert Greathouse, Senior Vice President and Chief Investment Officer

Mr. Greathouse joined CTO Realty Growth in January 2012, where he is responsible for the acquisition and disposition of income-producing properties and other investment opportunities. Before joining CTO, he was the Director of Finance at N3 Real Estate, a single-tenant triple net property developer. Prior to N3, he worked as a Senior Associate at Morgan Stanley and Crescent Real Estate Equities, focusing on mezzanine loan investments.

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1. Dividend Sustainability and Financial Reporting Scrutiny: There are significant concerns regarding the sustainability of CTO's dividend, with analyses suggesting it may be underfunded on a cash basis after accounting for capital expenditures, leading to a payout ratio potentially above 100%. This implies the company might be using its balance sheet or credit facilities to cover dividend payments. Furthermore, a class-action lawsuit has been filed, accusing CTO of misleading investors about dividend sustainability and engaging in deceptive financial practices, including artificially inflating Adjusted Funds from Operations (AFFO) and overstating the true profitability of its Ashford Lane property. This exposes the company to legal and reputational risks, as well as fundamental questions about its financial health.
2. Elevated Financial Leverage: CTO operates with an elevated balance sheet leverage, with net debt to Pro Forma Adjusted EBITDA ratios reportedly around 6x or higher. This level of debt is considered high for REITs and limits the company's financial flexibility. A high leverage ratio amplifies the impact of adverse market conditions, increases interest expenses, and reduces the company's ability to withstand unforeseen economic downturns or operational challenges.
3. Execution Risks in Portfolio Management and Lease Expirations: The company faces execution risks related to its portfolio recycling strategy, specifically the challenge of achieving sufficiently low capitalization rates on dispositions to fund new acquisitions. Additionally, delays in the opening of signed-not-open (SNO) pipelines can result in lower incremental Net Operating Income (NOI). As a relatively concentrated REIT with 21 properties, CTO also faces material risks from significant upcoming lease expirations in 2026 and 2027. A substantial portion of its Annual Base Rent (ABR) does not come from investment-grade tenants, increasing the risk of increased vacancy rates and the need for significant capital expenditures for re-tenanting if leases are not renewed.

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The addressable market for CTO Realty Growth, Inc.'s main products or services is primarily the U.S. commercial real estate market, as the company owns income properties in diversified markets across the United States. Additionally, its interest in Alpine Income Property Trust, Inc. provides exposure to the net lease real estate market.

The U.S. commercial real estate market was valued at $22.5 trillion as of the fourth quarter of 2023. Another estimate places the current size of the U.S. investable commercial real estate universe at approximately $19 trillion. These figures represent the total asset value of commercial real estate in the United States.

Within this broader market, the U.S. net-lease investment volume reached $51.4 billion in 2025. This represents the annual transaction volume within the net lease segment of the commercial real estate market in the United States.

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CTO Realty Growth (NYSE: CTO) is expected to drive future revenue growth over the next 2-3 years through a combination of strategic property acquisitions, continued strong leasing activity leading to increased occupancy and rental rates, monetization of its "signed-not-open" lease pipeline, and development of outparcels within its portfolio.

Here are the key drivers:

1. Strategic Acquisitions of High-Quality Retail Properties: CTO Realty Growth plans to continue expanding its portfolio through targeted acquisitions of high-quality retail properties, primarily in higher-growth markets in the Southeast and Southwest United States. The company closed $165.9 million in investments in 2025 at a weighted average initial cash yield of 9.0%. For 2026, CTO projects an investment volume between $100 million and $200 million, targeting a weighted average initial cash yield of 8.0% to 8.5%. Recent examples include the acquisition of Palms Crossing for $81.6 million in March 2026, which was 98% leased at the time, and being under contract to acquire another Texas shopping center for $83 million, expected to close in 2026.
2. Increased Occupancy and Rental Rate Growth: The company anticipates revenue growth from its existing portfolio through robust leasing activity, which is increasing occupancy and driving higher rental rates. In 2025, CTO signed comparable retail leases that resulted in a record 24% increase in cash base rent, with fourth-quarter 2025 comparable leases achieving an even higher 31% increase in cash rent spread. This strong leasing performance contributed to a record high leased occupancy of 95.9% by the end of 2025. The company forecasts shopping center same-property net operating income (NOI) growth of approximately 3.5% to 4.5% for 2026, indicating continued organic growth from its properties.
3. Monetization of "Signed-Not-Open" Lease Pipeline: CTO has a significant "signed-not-open" lease pipeline, valued at $6.1 million, which represents 5.8% of its in-place annualized base rent (ABR). Approximately half of this pipeline is expected to be recognized as revenue in 2026, with the remainder contributing to growth in 2027, as these new leases commence. This pipeline provides a clear, near-term source of additional revenue.
4. Outparcel Development: CTO Realty Growth has identified six outparcels within its existing properties for potential development. These projects are expected to require an average of $5 million in capital each and are targeting low double-digit yields. The development of these outparcels represents an opportunity to add new leasable space and generate incremental revenue from its current asset base.

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Share Repurchases

• In September 2025, CTO Realty Growth completed a $5 million common stock repurchase program, under which approximately $4.3 million of common stock was repurchased.
• The Board of Directors approved a new $10 million common stock repurchase program in September 2025.
• For the full year 2025, the company repurchased $9.3 million of common stock.

Share Issuance

• During the three months ended June 30, 2025, CTO Realty Growth issued 1,089,555 shares of common stock in connection with the settlement of its 2025 Convertible Senior Notes.

Outbound Investments

• CTO Realty Growth's total investment activity for 2025 reached $165.9 million, with a weighted average initial cash yield of 9.0%.
• In 2025, the company acquired two shopping centers in Atlanta and South Florida for a total of $144.9 million.
• The company originated $21.0 million in structured investment commitments in 2025, including a $5.0 million seller financing arrangement.

Capital Expenditures

• The company has development plans for six outparcels, with capital expected to be invested over 2026 and 2027.