CTO Realty Growth, Inc. (NYSE: CTO)

CTO Realty Growth, Inc. is a publicly traded self managed equity real estate investment trust that elected to be taxed as a REIT beginning with its 2020 taxable year. The company concentrates on acquiring owning and managing high quality retail and mixed use properties primarily in markets that demonstrate faster population and job growth business friendly tax policies and where retail demand outpaces supply. Its investment approach emphasizes fee simple ownership of properties complemented by strategic use of commercial loans and preferred equity investments. As of the end of 2025 the firm held 21 properties encompassing about 5.5 million square feet spread across seven states in the United States. The company’s history includes a reorganization that resulted in a merger which reincorporated the business in Maryland and facilitated compliance with REIT requirements. This structural change allowed the firm to access capital markets under the ticker symbol CTO on the New York Stock Exchange.

The company generates revenue mainly from base rent and expense recoveries collected from tenants leasing space in its income producing properties. Rental income is supported by long term leases many of which are triple or double net arrangements shifting operating costs to tenants. In addition to property earnings the firm receives management fee income for overseeing its investment in PINE for managing third party portfolios under a Portfolio Management Agreement and for administering subsurface interests via a Subsurface Management Agreement. Interest income is derived from a portfolio of commercial loans and preferred equity investments that are typically secured by real estate collateral and bear fixed or floating rates. The company also realizes revenue from its real estate operations which include the sale of mitigation credits and the disposition of subsurface mineral interests. Furthermore the firm earns origination fees when it funds new loan commitments and may receive prepayment penalties on certain debt instruments.

The company operates through the following segments: Income Properties Management Services Commercial Loans and Investments and Real Estate Operations.

• The Income Properties segment consists of 21 retail and mixed use assets including 17 shopping centers and four other properties totaling roughly 5.5 million square feet located in Florida Georgia Texas Arizona North Carolina Virginia and New Mexico. These properties generate the majority of the company’s revenue through lease payments expense recoveries and percentage rent arrangements. The segment focuses on maintaining high occupancy rates executing lease renewals that reflect market conditions and pursuing selective acquisitions and dispositions to recycle capital. As of the end of 2025 the weighted average remaining lease term for the shopping center portfolio was five years while the other properties averaged about four years.

• The Management Services segment provides asset management oversight for PINE third party portfolios and subsurface interests earning fees based on equity values and transaction activity. It receives a base management fee equal to a percentage of PINE’s total equity with a reduced rate on the incremental equity arising from preferred stock proceeds. The segment also earns disposition fees leasing commissions and other advisory fees under the Portfolio Management Agreement and the Subsurface Management Agreement. In addition the segment may earn incentive fees if certain performance thresholds are met by the managed entities.

• The Commercial Loans and Investments segment holds four corporate loan investments and two preferred equity investments that are primarily secured by real estate assets and generate interest income origination fees and potential appreciation. The loans typically have terms ranging from one to ten years and are structured as senior mezzanine or pari passu arrangements depending on the underlying collateral. As of the end of 2025 the carrying value of this segment was approximately $104.8 million. The segment’s earnings are influenced by the credit quality of borrowers the prevailing interest rate environment and the timing of loan repayments.

• The Real Estate Operations segment encompasses revenues from the sale of mitigation credits and subsurface mineral interests as well as associated costs. During 2024 the company sold its remaining mitigation credits for about $1.8 million and disposed of its subsurface interests for roughly $5.0 million generating gains on those transactions. As of the end of 2025 the segment held minimal assets consisting mainly of a small amount of receivables related to prior sales. The segment’s activity is subject to fluctuations in commodity prices regulatory changes and the timing of environmental permit approvals.

The real estate industry is characterized by intense competition for acquiring quality assets and attractive financing terms. The company competes with other publicly traded REITs private equity groups institutional investors and regional operators when bidding for properties and originating loans. Its competitive strengths stem from a disciplined focus on markets with strong economic fundamentals a self managed structure that reduces reliance on external advisors and a diversified platform that combines property ownership management services and lending activities. Additionally the firm benefits from access to a revolving credit facility term loans and the ability to use 1031 like kind exchange transactions to defer taxes on property dispositions. The company also leverages its long standing relationships with lenders and its expertise in evaluating real estate fundamentals to identify opportunities that offer risk adjusted returns.

The company serves a broad range of retail tenants that include national chain restaurants grocery stores fitness centers service providers and boutique retailers. Its shopping center properties typically anchor with larger tenants such as supermarkets or big box stores while surrounding spaces are occupied by smaller local businesses. Lease structures vary with many tenants paying proportionate shares of property operating expenses under triple or double net agreements. Geographic diversification across seven states reduces reliance on any single regional economy. The tenant mix is regularly reviewed to ensure credit quality and to align with the company’s goal of maintaining stable cash flows through long term occupancy.