CTO-PA — CTO Realty Growth, Inc.

CTO Realty Growth, Inc. Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Core FFO: $15.8 million for Q4 2025, up from $14.2 million in Q4 2024; $0.49 per diluted share vs. $0.46 in the prior year.
• Full Year Core FFO: $60.5 million, a significant increase from $47.9 million in 2024; $1.87 per diluted share vs. $1.88 in 2024.
• Same Property NOI: Increased by 1.1% for Q4, with shopping centers specifically growing by 4.3%.
• Occupancy Rate: Record high lease occupancy at 95.9%.
• Liquidity: Ended the year with $167 million, including $149 million available under a revolving credit facility.

2. Strategic Updates and Business Highlights

• Leasing Activity: Signed leases for 189,000 square feet in Q4, with a cash rent increase of 31%. Full-year leasing reached a record 671,000 square feet with a 24% cash rent increase.
• Acquisitions: Acquired Pompano City Center for $65.2 million, currently 92% occupied, with potential for future leasing opportunities.
• Dispositions: Sold The Shops at Legacy North for $78 million, demonstrating effective capital recycling.
• Future Developments: Identified six outparcels for development, with investments expected to yield low double-digit returns.

3. Forward Guidance and Outlook

• 2026 Core FFO Guidance: Expected to be between $1.98 and $2.03 per diluted share, with same property NOI growth for shopping centers projected at 3.5% to 4.5%.
• Investment Volume: Anticipated between $100 million to $200 million with initial yields of 8% to 8.5%.
• Pipeline: A signed not open pipeline of $6.1 million, with 50% expected to contribute to earnings in 2026.

4. Bad News, Challenges, or Points of Concern

• Non-Core Properties: Same property NOI for non-core properties was adversely affected by the vacancy of Fidelity in New Mexico.
• Market Conditions: Potential challenges in the broader market for acquisitions, with limited inventory available.
• Debt Maturity: Anticipated repayment of a loan from Waters in Q2 2026, which may require asset sales to maintain liquidity.

5. Notable Q&A Insights

• Backfilling Vacancies: Management is optimistic about filling remaining anchor spaces, with expected contributions ramping up in 2026 and full occupancy anticipated by 2027.
• Pompano City Center: There is significant upside potential from lease-up opportunities, particularly with JCPenney's below-market lease.
• Market Strategy: The company plans to focus on lifestyle and power centers over grocery-anchored properties due to yield considerations.
• Future Growth: Management expressed confidence in organic growth from existing leases, with many tenants likely to renew at higher rates.

Overall, CTO Realty Growth, Inc. reported strong financial performance in Q4 2025, with a focus on strategic acquisitions and proactive leasing efforts. However, challenges remain in the non-core property segment and market conditions affecting future acquisitions. The outlook for 2026 appears positive, with expectations for continued growth in earnings and occupancy.