• Commercial Property Leasing: CTO Realty Growth provides leasable space in its portfolio of retail, office, and mixed-use properties to various tenants.
• Real Estate Portfolio Management: The company manages its diversified portfolio of income-producing commercial properties to optimize performance, enhance tenant experience, and maximize asset value.

CTO Realty Growth (CTO) is a real estate investment trust (REIT) that owns and operates a diversified portfolio of income-producing properties, primarily retail, office, and mixed-use assets. As such, the company sells primarily to other companies, which are its tenants.

Based on their latest investor presentations and financial reports (as of Q1 2024 supplemental information), the major customers (tenants by Annualized Base Rent) of CTO Realty Growth include:

• Publix Super Markets (Private)
• Whole Foods Market (Owned by Amazon - AMZN)
• The Fresh Market (Private)
• Lowe's Home Centers (LOW)
• HomeGoods / Marshalls (Owned by The TJX Companies - TJX)
• T.J. Maxx (Owned by The TJX Companies - TJX)
• AMC Theatres (AMC)
• First Watch Restaurants (FWRG)
• Trader Joe's (Private)
• PetSmart (Private)

The key risks to CTO Realty Growth (CTO) primarily revolve around allegations of financial misrepresentation and the associated impact on its financial stability and investor confidence.

1. Securities Fraud Allegations and Governance Risks: CTO Realty Growth is facing multiple securities fraud allegations, investigations, and class-action lawsuits from various law firms, including The Schall Law Firm, Pomerantz LLP, Hagens Berman, and The Law Offices of Frank R. Cruz. These allegations, notably highlighted by a June 2025 report from Wolfpack Research, include claims of dividend overpayment, manipulation of Adjusted Funds From Operations (AFFO) by excluding recurring capital expenditures, and the use of "sham loans" to conceal financial distress, such as a top tenant's bankruptcy at its Ashford Lane property. Such claims suggest systemic issues in financial disclosures and governance practices, risking investor trust, legal action, and potential significant market value loss.
2. Financial Health, Debt, and Liquidity Risks: The company faces significant financial challenges, particularly in a high-interest-rate environment, which impacts its cost of capital and the sustainability of its dividend. CTO Realty Growth has experienced a notable drop in net income, primarily due to increased interest expenses. Concerns persist regarding the company's unprofitability, with widening losses over the past five years, and high leverage, indicated by a 6.9x EBITDA ratio. Allegations also suggest the company has paid out more in dividends than its cash flow from operations, resorting to increasing its share count, thereby diluting existing shareholders, to bridge liquidity gaps. This raises questions about the long-term sustainability of its dividend model and its ability to manage debt if market conditions worsen or refinancing becomes difficult.
3. Regional Economic Slowdown and Asset Vulnerability: While CTO Realty Growth has strategically focused on properties in faster-growing Sunbelt markets, a shift in migration patterns or a regional economic slowdown could render its asset base vulnerable. Such a scenario could lead to increased property vacancies for extended periods, directly impacting rental income and potentially pressuring dividend levels. Furthermore, execution risks, such as delays in re-leasing major anchor spaces, could further strain the company's margins and hinder its ability to reduce its debt burden.

U.S. Commercial Real Estate Market

U.S. Multi-Tenant Retail Real Estate Market

U.S. Office Real Estate Market

Other Products/Services

CTO Realty Growth (CTO) is expected to drive future revenue growth over the next two to three years through several key strategies:

1. Strategic Acquisitions of Income-Producing Properties: The company consistently focuses on acquiring high-quality retail properties, particularly in fast-growing Sun Belt markets such as Florida, Georgia, and Texas. CTO has a history of significant investment activity, including a $191.3 million investment in Q3 2024 and an increased investment guidance of $300 million to $350 million for 2024, which is expected to continue contributing to revenue growth.
2. Robust Leasing Activity and Positive Rent Spreads: CTO has demonstrated strong leasing momentum, signing new leases, renewals, and extensions at substantially higher rents. For instance, the company achieved impressive leasing spreads of 22% on comparable leases in Q2 2025 and 21.7% in Q3 2025, with projections of 40% to 60% for major anchor tenant renewals. This is further supported by a "signed-not-open" (SNO) pipeline, which represents future annual cash base rent from leases already executed but not yet commenced, providing a clear tailwind for upcoming revenue.
3. Organic Growth from Existing Portfolio (Same-Property Net Operating Income): The company anticipates continued growth from its existing portfolio through increases in same-property Net Operating Income (NOI). CTO reported a same-property NOI growth of 0.9% in Q2 2025 and 2.3% in Q3 2025, driven by improved occupancy rates and rental rate escalations within its stabilized assets.
4. Growth in Commercial Loans and Investments & Management Fees: Beyond its core property income, CTO also generates revenue from commercial loans and investments, which saw a significant increase of 95% year-over-year in Q3 2025, and management services income. These diversified streams, while secondary to real estate operations, contribute to overall revenue expansion.

Share Repurchases

• CTO Realty Growth approved a new $10 million common stock repurchase program in September 2025, following the completion of a previous $5 million program where approximately $4.3 million of stock was repurchased.
• During the three months ended September 30, 2025, the company repurchased $4.3 million of common stock, and an additional $5.0 million was repurchased under the new $10.0 million program through October 28, 2025, totaling $9.3 million.
• In 2023, the company repurchased 369,300 shares of common stock at an average price of $16.35 per share and 21,192 shares of Series A Preferred Stock at an average price of $18.45 per share.

Share Issuance

• In 2024, CTO Realty Growth raised net proceeds of $165.2 million by issuing 8,922,793 common shares through its ATM offering program.
• During the first half of 2025, the company issued 1,089,555 shares of common stock in privately-negotiated transactions to settle $35.2 million in aggregate principal amount of 2025 Notes, along with cash payments.
• In 2022, the company issued 5,016,026 shares of common stock through a follow-on equity offering and ATM offering program for total net proceeds of $95.3 million.

Outbound Investments

• CTO Realty Growth's investments totaled $330.8 million in 2024, including property acquisitions and structured investments. In the same year, the company sold two properties for $38.0 million.
• In 2023, the company invested $80.0 million into four retail property acquisitions and one land parcel, and originated two structured investments totaling $30.4 million. It also sold nine income properties for $87.1 million.
• In 2022, the company invested a record $314.0 million into five mixed-use or retail property acquisitions and originated structured investments totaling $59.2 million. Six income properties were sold for $81.1 million during this period.

Capital Expenditures

• Management's top capital allocation priority is developing and acquiring high-quality properties that offer opportunities for long-term cash flow growth, with guidance for investments of $150 million to $200 million in 2025.
• The company is focusing on enhancing its existing portfolio through initiatives such as leasing spaces at higher rents to creditworthy tenants and pursuing an anchor repositioning strategy.
• Efforts are also being made to bring more property management in-house, aiming for cost savings and improved service.