CTO Realty Growth, Inc.
CTO Realty Growth, Inc. is a self-managed equity REIT that owns, manages, and selectively repositions commercial real estate, with a focus on high-quality retail and mixed-use properties. The company’s portfolio is concentrated in faster-growing, business-friendly U.S. markets where it believes job and population growth support tenant demand and rent growth. In addition to its core property portfolio, CTO also earns fee income from management services and interest income from commercial loans and preferred equity investments. The company is listed on the NYSE under the ticker CTO and has operated as a REIT since its 2021 conversion.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueRetail and mixed-use commercial properties held for rental income and asset appreciation.
Commercial loan investments and preferred equity positions that generate interest income.
Fee-based asset and property management services, including management of PINE and other portfolios.
Customers
CTO’s primary customers are retail and mixed-use tenants that lease space in its owned properties, so the company’s revenue depends heavily on tenant occupancy, rent collections, and store-level performance. These tenants are typically businesses that need physical locations in growing suburban or metropolitan trade areas where consumer traffic and local demographics support sales. A smaller customer base includes third-party asset owners and managed portfolios that pay fees for management services. The company also has borrower and investment counterparties in its commercial loan and preferred equity portfolio, which adds a credit-oriented customer relationship alongside the real estate leasing business.
Lease space in shopping centers and other retail properties because CTO’s locations are designed to capture consumer traffic in growth markets.
Occupy space in mixed-use assets where proximity to residential and commercial demand supports stable leasing.
Use CTO’s commercial loans and preferred equity capital for real estate-related financing needs.
Pay fees for portfolio and subsurface management services, creating a smaller recurring fee stream.
Strategy
CTO’s strategy is to recycle capital from property sales and loan payoffs into additional income-producing properties, using leverage selectively to expand the portfolio. Management emphasizes acquiring assets in markets with strong demographic trends, business-friendly tax policies, and retail demand that exceeds supply. The company also uses fee-based management and commercial lending as complementary businesses that diversify income beyond pure rent collection. Capital allocation remains flexible, with the board reviewing dividends, repurchases, and reinvestment choices based on long-term stockholder returns.
Expands recurring rental income and improves portfolio quality in target markets.
Supports occupancy, tenant demand, and rent growth in markets with favorable demographics.
Reduces dependence on property rental income and adds fee/interest income streams.
Geography
CTO’s portfolio is concentrated in the United States, with 21 commercial properties across 7 states as of year-end 2025. Management says it targets faster-growing, business-friendly markets with accommodative tax policies and above-average job and population growth. That geographic focus is central to the strategy because it aims to support tenant demand, occupancy, and rent growth while reducing exposure to slower-growth markets. The company’s revenue is therefore tied to U.S. regional real estate conditions rather than international markets.
Risks
CTO is exposed to the usual risks of commercial real estate ownership, including tenant bankruptcies, rent collection issues, lease rollover, valuation volatility, and illiquidity of properties. Because a significant portion of the portfolio is retail-oriented, the company is also sensitive to consumer spending, e-commerce substitution, and changing tenant formats that can weaken brick-and-mortar demand. Its growth strategy depends on successful acquisitions and dispositions, so execution risk, financing availability, and interest rate movements can affect returns and leverage capacity. The company also highlighted cybersecurity as a risk because a breach could disrupt operations, compromise cash or data, and damage tenant and investor confidence. Dividend capacity is not guaranteed and depends on cash flow, financing conditions, and portfolio performance.
- Retail tenant and consumer demand weaknessImpact: HighLikelihood: Medium
The portfolio is concentrated in retail properties, so lower consumer spending or tenant sales can reduce occupancy and rent collections.
Exposure: Income Properties
- Interest rate risk on debtImpact: HighLikelihood: Low
The company uses leverage and its borrowing costs and acquisition returns are sensitive to market rates.
Exposure: Credit Facility and property acquisitions
- Dividend reduction riskImpact: MediumLikelihood: Medium
Dividend payments depend on financial condition, results of operations, and cash flows, which can vary with property performance and capital markets.
Exposure: Common stockholders
- Cybersecurity incidentImpact: MediumLikelihood: Low
A breach could disrupt operations, cause data loss, or create liability and reputational damage.
Exposure
Accounting
Judgemental itemsThe split between land, buildings, and lease intangibles changes depreciation and amortization expense and therefore reported earnings.
Impact: 2025 acquisitions included significant intangible asset and liability allocations.
Rental income, management fees, and loan interest are recognized differently, affecting comparability between segments and periods.
Impact: Segment mix can shift quarterly revenue growth rates.
Real estate and loan investments require judgment on recoverability and market value, which can materially affect reported assets and earnings.
Impact: Changes in market conditions may trigger valuation adjustments.
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Last updated: 24/09/2026