CTO Realty Growth | 10-Q: FY2026 Q1 Revenue: USD 41.17 M

Revenue: As of FY2026 Q1, the actual value is USD 41.17 M.

EPS: As of FY2026 Q1, the actual value is USD 0.13, beating the estimate of USD 0.025.

EBIT: As of FY2026 Q1, the actual value is USD 14.32 M.

Segment Revenue

• Income Properties: Revenue for CTO Realty Growth, Inc. was $36,580 thousand for the three months ended March 31, 2026, an increase of 15.5% from $31,672 thousand in the same period in 2025.
• Management Services: Revenue increased by 14.5% to $1,349 thousand for the three months ended March 31, 2026, up from $1,178 thousand in the prior year period. This includes management fees from Alpine Income Property Trust, Inc. (PINE) of $1.3 million (2026) and $1.1 million (2025), and revenue from an asset management agreement of $0.1 million (2026) and less than $0.1 million (2025).
• Commercial Loans and Investments: Interest income totaled $3,244 thousand for the three months ended March 31, 2026, a 9.6% increase compared to $2,961 thousand for the same period in 2025.
• Total Revenue: Overall total revenue for CTO Realty Growth, Inc. increased by $5,362 thousand, or 15.0%, to $41,173 thousand for the three months ended March 31, 2026, from $35,811 thousand in the prior year.

Operational Metrics

• Income Properties Operating Income: Operating income was $26,412 thousand for the three months ended March 31, 2026, up from $22,781 thousand for the same period in 2025. Direct costs of revenues were - $10,168 thousand in 2026 compared to - $8,891 thousand in 2025.
• Commercial Loans and Investments: A provision for impairment and adjustment to CECL reserve resulted in a $321 thousand increase in net income for the three months ended March 31, 2026, with no adjustment recorded in the prior year period.
• General and Administrative Expenses: These expenses increased by 8.4% to - $5,077 thousand for the three months ended March 31, 2026, from - $4,683 thousand in the prior year, primarily due to a higher employee count from increased operating activity.
• Depreciation and Amortization: Total depreciation and amortization increased by $1.6 million to - $15,956 thousand for the three months ended March 31, 2026, compared to - $14,364 thousand for the same period in 2025, driven by the growth in CTO Realty Growth, Inc.’s income property portfolio.
• Investment and Other Income: This income totaled $3,243 thousand for the three months ended March 31, 2026, significantly higher than $575 thousand for the prior year period. This includes an unrealized non-cash gain of $3.2 million on the investment in PINE in 2026, compared to a loss of - $0.2 million in 2025, while dividend income from PINE was $0.7 million for both periods.
• Interest Expense: Interest expense increased by $1.1 million to - $7,271 thousand for the three months ended March 31, 2026, from - $6,136 thousand in 2025, primarily due to an aggregate increase in CTO Realty Growth, Inc.’s term loan balances.
• Net Income Attributable to the Company: Net income increased by $3.9 million to $6,205 thousand for the three months ended March 31, 2026, compared to $2,261 thousand in the prior year period.

Cash Flow

• Operating Activities: Net cash provided by operating activities increased by $4.3 million to $14,604 thousand for the three months ended March 31, 2026, from $10,311 thousand in 2025, primarily due to increased cash flows from income properties and commercial loans and investments.
• Investing Activities: Net cash used in investing activities decreased by $12.0 million to - $68,675 thousand for the three months ended March 31, 2026, from - $80,669 thousand in 2025. This was mainly due to a $26.3 million increase in principal repayments on commercial loans and investments, partially offset by $6.0 million in cash outflows for investment securities acquisitions and $8.4 million higher cash outflows for income property acquisitions, capex, and construction loan funding.
• Financing Activities: Net cash provided by financing activities decreased by $36.6 million to $31,821 thousand for the three months ended March 31, 2026, from $68,361 thousand in 2025. This was primarily due to a $50.0 million reduction in proceeds from long-term debt issuances, partially offset by $14.2 million higher cash inflows from common stock issuances under the common ATM program.

Unique Metrics

• Income Properties Portfolio (as of March 31, 2026): CTO Realty Growth, Inc. owns and manages 22 commercial real estate properties across seven states, totaling 5.9 million square feet of gross leasable space. The portfolio of 18 shopping centers generates $110.2 million in annualized straight-line base lease payments with a weighted average remaining lease term of 5.0 years, while the 4 other income properties generate $3.7 million with a 3.6-year weighted average remaining lease term.
• Geographic Concentration (as of March 31, 2026): Based on square footage, 28% of the income property portfolio is in Georgia, 23% in Florida, 18% in Texas, and 17% in North Carolina. Base rent revenue concentration for the three months ended March 31, 2026, was 34% from Georgia, 23% from Florida, 15% from Texas, and 13% from North Carolina.
• Acquisitions: In Q1 2026, CTO Realty Growth, Inc. acquired Palms Crossing, an open-air shopping center in McAllen, TX, for $81.8 million, comprising 399,000 square feet, 98% occupied, and a 4.5-year weighted average remaining lease term. In Q1 2025, the company acquired Ashley Park in Newnan, GA, for $80.0 million, comprising 559,000 square feet, 92% occupied, and a 4.1-year weighted average remaining lease term.
• Commercial Loans and Investments (as of March 31, 2026): The portfolio consists of four commercial loan investments and one preferred equity investment, with the $30.0 million Watters Creek preferred equity investment fully repaid in Q1 2026. Unfunded loan commitments for two construction loans totaled $46.2 million.
• Investment in PINE (as of March 31, 2026): The fair value of the investment in PINE was $44.5 million, representing 14.0% of PINE’s outstanding common equity.
• Long-Term Debt (as of March 31, 2026): Total long-term debt face value was $651,800 thousand, with $17,800 thousand due within one year. The Credit Facility had an outstanding balance of $184.0 million, with $116.0 million undrawn commitment.
• Capital Expenditures: Total capital expenditures were $90,660 thousand for the three months ended March 31, 2026, compared to $82,307 thousand in 2025, with income properties accounting for $85,368 thousand (2026) and $80,864 thousand (2025).
• Assets Held for Sale (as of March 31, 2026): One shopping center, Madison Yards in Atlanta, Georgia, was classified as held for sale, with total assets held for sale amounting to $72,126 thousand.

Future Outlook and Strategy

CTO Realty Growth, Inc. plans to fund future acquisitions using cash on hand, operating cash flows, proceeds from property dispositions via 1031 like-kind exchanges, borrowings from its Credit Facility, and additional financing sources. The company’s guidance for 2026 investments in income-producing properties, including structured investments, ranges from $175.0 million to $250.0 million. The core investment strategy remains focused on shopping centers, with potential for capital recycling through the sale of single-tenant properties and utilizing 1031 like-kind exchanges.