CTO Realty Growth, Inc.
Key statistics
from XBRL data in SEC filingsAI briefing
from the latest 10-K, 10-Q and 8-K eventsCTO Realty Growth, Inc. is a self-managed equity REIT that owns and operates retail and mixed-use properties, primarily in higher-growth U.S. markets, and also provides management services and commercial loan investments.
What they do
CTO focuses on ownership, management, and repositioning of high-quality retail and mixed-use properties. As of December 31, 2025, it owned 21 commercial properties across 7 states, totaling 5.5 million square feet. It also manages Alpine Income Property Trust (PINE) under a fee-based management agreement and holds commercial loans and preferred equity investments.
Revenue drivers
- Income Properties — Rents from 21 retail/mixed-use properties (5.5M sq ft) in 7 states; primary revenue source.
- Management Services — Fees from managing PINE and other assets; Q2 2026 management fees were $1.4M, with an annualized run-rate of $5.7M.
- Commercial Loans and Investments — Interest and preferred equity yields from portfolio of 4 loans and 2 preferred equity investments; Q2 2026 included $75M preferred equity at 12% yield and $21.4M at 12% initial yield.
- PINE Dividend Income — Dividends from 15.4% stake in PINE; Q2 2026 dividend income was $0.7M, annualized run-rate $3.2M.
Recent performance
For Q2 2026, net income attributable to common stockholders was $13.2M ($0.38 per diluted share), versus a net loss of $25.3M in Q2 2025. Core FFO was $18.4M ($0.53/share), and AFFO was $19.1M ($0.55/share). Closed $153M of investments at a weighted average initial yield of 10.2%, including the $53.3M acquisition of Gallery on the Parkway in Dallas and $96.4M of preferred equity. Sold $90.7M of properties at a 6.7% exit cap rate. Issued 4.18M shares at $20.29 average, raising $83.6M net.
Strategy
Management's stated strategy is to deploy capital into high-quality, well-located retail centers in core growth markets, using acquisitions and structured investments (preferred equity) at attractive yields. The company is also actively managing dispositions to recycle capital into higher-yielding opportunities. Guidance for 2026 investments was raised to $300-$400 million, and Core FFO per share guidance was increased to $2.09-$2.13.
Risks
- Tenant concentration and retail headwinds — Revenue depends on tenant success; loss of anchor tenants or retail weakness (e-commerce, consumer spending) could hurt occupancy and rents.
- PINE relationship dependency — Management fees and dividend income from PINE are a meaningful revenue stream; a decline in PINE's business or assets would reduce revenues.
- Commercial loan credit risk — Borrower defaults could cause losses, especially if collateral value is insufficient.
- REIT qualification and financial flexibility — Failure to maintain REIT status would trigger corporate tax, and REIT distribution requirements limit financial flexibility.
Outlook
Management raised 2026 investment guidance to $300-$400 million and increased Core FFO guidance to $2.09-$2.13 per diluted share. With a robust acquisition pipeline and embedded NOI growth, they believe the company is positioned for continued earnings growth into 2027. They also expect an $8.9 million annualized income run-rate from PINE as of June 30, 2026.