# CTO Realty Growth, Inc.

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/CTO Realty Growth, Inc.).

## Overview

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.

## Products & services

• Ownership and leasing of retail and mixed-use properties
• Property management and repositioning of income properties
• Fee-based management services for PINE and other assets
• Commercial loans and structured investments
• Preferred equity investments in real estate assets

- **Income Properties** (89%) — Retail and mixed-use commercial properties held for rental income and asset appreciation.
- **Commercial Loans and Investments** (8%) — Commercial loan investments and preferred equity positions that generate interest income.
- **Management Services** (3%) — Fee-based asset and property management services, including management of PINE and other portfolios.

- Ownership and leasing of retail and mixed-use properties
- Property management and repositioning of income properties
- Fee-based management services for PINE and other assets
- Commercial loans and structured investments
- Preferred equity investments in real estate assets

## 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.

- **Retail tenants** (primary) — Lease space in shopping centers and other retail properties because CTO’s locations are designed to capture consumer traffic in growth markets.
- **Mixed-use tenants** (primary) — Occupy space in mixed-use assets where proximity to residential and commercial demand supports stable leasing.
- **Borrowers and structured investment counterparties** (secondary) — Use CTO’s commercial loans and preferred equity capital for real estate-related financing needs.
- **Managed asset owners** (secondary) — Pay fees for portfolio and subsurface management services, creating a smaller recurring fee stream.

- Retail tenants leasing storefronts and shopping-center space
- Mixed-use tenants seeking locations in growth markets
- Third-party asset owners using CTO management services
- PINE and other managed portfolios generating fee income
- Commercial loan borrowers and structured investment counterparties

## 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.

- **United States** (100%) — Portfolio and operations are described as U.S.-based; no country-level revenue split was disclosed.

- Operations are concentrated in the United States
- 21 commercial properties across 7 states as of December 31, 2025
- Focus on faster-growing, business-friendly markets
- Targets larger metropolitan areas and growth markets
- Geographic mix matters because local demand drives occupancy and rent

## 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.

- **Acquire and reposition income-producing properties** (short-term) — Expands recurring rental income and improves portfolio quality in target markets.
- **Grow in faster-growing metropolitan and suburban markets** (medium-term) — Supports occupancy, tenant demand, and rent growth in markets with favorable demographics.
- **Diversify earnings through loans and management services** (medium-term) — Reduces dependence on property rental income and adds fee/interest income streams.

- Redeploy capital from dispositions into new income properties
- Use leverage selectively to fund portfolio growth
- Focus on growth markets with strong job and population trends
- Diversify income through management services and commercial loans
- Maintain capital allocation flexibility across dividends, buybacks, and reinvestment

## 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 weakness** [high] — The portfolio is concentrated in retail properties, so lower consumer spending or tenant sales can reduce occupancy and rent collections.
- **Interest rate risk on debt** [high] — The company uses leverage and its borrowing costs and acquisition returns are sensitive to market rates.
- **Cybersecurity incident** [medium] — A breach could disrupt operations, cause data loss, or create liability and reputational damage.
- **Dividend reduction risk** [medium] — Dividend payments depend on financial condition, results of operations, and cash flows, which can vary with property performance and capital markets.

- Retail tenant weakness can reduce occupancy and rental income
- E-commerce and changing consumer behavior can pressure brick-and-mortar demand
- Interest rate risk affects debt costs and acquisition economics
- Property valuation and liquidity risk can impair portfolio flexibility
- Tenant bankruptcy or rent delinquency can disrupt cash flow
- Cybersecurity incidents could disrupt operations or compromise assets
- Dividend sustainability depends on cash flow and financing conditions

## Accounting

CTO’s reported results are heavily influenced by real estate accounting judgments, especially purchase price allocation when acquiring properties. In 2025 the company allocated acquisition cost among land, buildings, in-place lease intangibles, above-market and below-market lease items, which affects depreciation, amortization, and near-term earnings. Revenue recognition is also important because rental income, management fees, and interest income from loans are recognized under different patterns and can create quarter-to-quarter variability. Investors should also watch fair value and impairment-related judgments for real estate assets, loans, and preferred equity investments, since changes in market conditions can affect carrying values and reported results. Because the company uses leverage and leases properties, interest expense and lease-related accounting can also influence comparability across periods.

- **Purchase price allocation for property acquisitions** — 2025 acquisitions included significant intangible asset and liability allocations.
- **Revenue recognition across multiple business lines** — Segment mix can shift quarterly revenue growth rates.
- **Fair value and impairment assessments** — Changes in market conditions may trigger valuation adjustments.

- Purchase price allocation affects depreciation and amortization after acquisitions
- In-place lease and above/below-market lease intangibles affect near-term earnings
- Rental income, management fees, and interest income follow different recognition patterns
- Fair value and impairment judgments matter for properties and loan investments
- Quarterly results can vary with acquisition/disposition timing and lease-up activity
- Leverage increases sensitivity to interest expense and debt accounting

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*Last updated: 2026-08-11T04:46:27.270558+00:00*