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CTO AG真人官方ty Growth Reports Second Quarter 2025 Operating Results

鈥� Signed 190,000 square feet of comparable leases at 22% growth in cash rent spread 鈥�
鈥� Reaffirmed 2025 Outlook 鈥�

WINTER PARK, Fla., July 29, 2025 (GLOBE NEWSWIRE) -- CTO AG真人官方ty Growth, Inc. (NYSE: CTO) (the 鈥淐ompany鈥� or 鈥淐TO鈥�), an owner and operator of retail-based properties located primarily in higher-growth markets, today announced its operating and financial results for the quarter ended June 30, 2025.

Second Quarter 2025 Highlights

• Net Loss attributable to common stockholders of $(0.77) per diluted share.
• Core Funds from Operations (鈥淔FO鈥�) attributable to common stockholders, of $0.45 per diluted share.
• Adjusted Funds from Operations (鈥淎FFO鈥�) attributable to common stockholders of $0.47 per diluted share.
• Signed 190,027 square feet of comparable leases at a positive cash rent spread of 21.6%.
• Current signed-not-open pipeline represents $4.6 million, or 4.6%, of annual cash base rent in place at quarter end.
• Leased occupancy of 93.9%.
• Fully retired Convertible Senior Notes.
• Reaffirmed full year Core FFO and AFFO guidance per diluted share attributable to common stockholders.

鈥淥ur portfolio continues to produce strong leasing activity as we leased 190,000 square feet with significant positive spreads, driving our signed-not-open pipeline to $4.6 million, representing 4.6% of in-place cash ABR. We also made significant progress filling our vacant anchor spaces, with six of the ten now leased with ongoing lease negotiations for the remaining spaces,鈥� stated John P. Albright, President and Chief Executive Officer of CTO AG真人官方ty Growth. 鈥淲e believe that this leasing activity will provide the Company with earnings tailwinds into 2026.鈥�

Quarterly Financial Results Highlights

The table below provides a summary of the Company鈥檚 operating results for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024:

Year-to-Date Financial Results Highlights

The table below provides a summary of the Company鈥檚 operating results for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024:

Portfolio Summary

The Company鈥檚 income property portfolio consisted of the following as of June 30, 2025:

Same Property Net Operating Income

During the three month period ended June 30, 2025 and 2024, the Company鈥檚 Same-Property NOI totaled $17.5 million and $17.4 million, respectively, as presented in the following table:

_{$ in thousands.}

During the six month period ended June 30, 2025 and 2024, the Company鈥檚 Same-Property NOI totaled $33.5 million and $32.7 million, respectively, as presented in the following table:

_{$ in thousands.}

Leasing Activity

During the three months ended June 30, 2025, the Company signed 22 leases totaling 226,732 square feet. On a comparable basis, which excludes vacancy existing at the time of acquisition, CTO signed 14 leases totaling 190,027 square feet at an average cash base rent of $25.54 per square foot compared to a previous average cash base rent of $21.01 per square foot, representing 21.6% comparable growth.

A summary of the Company鈥檚 overall leasing activity for the quarter ended June 30, 2025, is as follows:

_{In thousands except for per square foot and weighted average lease term data. Comparable leases compare leases signed on a space for which there was previously a tenant.}

During the six months ended June 30, 2025, the Company signed 40 leases totaling 339,317 square feet. On a comparable basis, which excludes vacancy existing at the time of acquisition, CTO signed 31 leases totaling 299,429 square feet at an average cash base rent of $24.96 per square foot compared to a previous average cash base rent of $19.72 per square foot, representing 26.6% comparable growth.

A summary of the Company鈥檚 overall leasing activity for the six months ended June 30, 2025, is as follows:

_{In thousands except for per square foot and weighted average lease term data. Comparable leases compare leases signed on a space for which there was previously a tenant.}

Capital Markets and Balance Sheet

Our balance sheet as of June 30, 2025, included the following long-term debt and liquidity:

• As of June 30, 2025, the Company has $76.0 million of undrawn commitments, prior to borrowing base limitations, on our Revolving Credit Facility, and $8.6 million of cash on hand.
• The 2025 Notes were settled during the three months ended June 30, 2025. On April 3, 2025, the Company completed separate, privately-negotiated transactions with holders of $35,208,000 in aggregate principal amount of the 2025 Notes in which the holders exchanged their 2025 Notes with the Company for an aggregate of 1,089,555 shares of the Company鈥檚 common stock, and aggregate cash payments of $29.0 million including $0.6 million representing accrued interest. The 2025 Notes received by the Company were retired. At maturity on April 15, 2025, the Company completed the payoff of the remaining 2025 Notes in an aggregate principal amount of $15,826,000 for an aggregate cash payment of $22.0 million including $0.3 million representing accrued interest.

The following table provides a summary of the Company鈥檚 long-term debt, as of June 30, 2025:

As of June 30, 2025, the Company鈥檚 net debt to Pro Forma Adjusted EBITDA was 6.9 times, and as defined in the Company鈥檚 credit agreement, the Company鈥檚 fixed charge coverage ratio was 4.1 times. As of June 30, 2025, the Company鈥檚 net debt to total enterprise value was 46.6%. The Company calculates total enterprise value as the sum of net debt, par value of its 6.375% Series A preferred equity, and the market value of the Company's outstanding common shares.

Dividends

On May 27, 2025, the Company announced a cash dividend on its common stock and Series A Preferred Stock for the second quarter of 2025 of $0.38 per share and $0.40 per share, respectively, payable on June 30, 2025 to stockholders of record as of the close of business on June 12, 2025. The second quarter 2025 common stock cash dividend represented a payout ratio of 84.4% and 80.9% of the Company鈥檚 second quarter 2025 Core FFO Attributable to Common Stockholders per Common Share - Diluted and AFFO Attributable to Common Stockholders per Common Share - Diluted, respectively.

2025 Outlook

The Company has reaffirmed its Core FFO and AFFO outlook for 2025 as well as the assumptions detailed below based on current plans and assumptions. The Company鈥檚 2025 outlook is subject to risks and uncertainties more fully described in this press release and the Company鈥檚 reports filed with the U.S. Securities and Exchange Commission.

The Company鈥檚 outlook for 2025 is as follows:

The Company鈥檚 2025 outlook includes but is not limited to the following assumptions for the year ending December 31, 2025:听

• Investments, including structured investments, between $100.0 million and $200.0 million at a weighted average initial cash yield between 8.0% and 8.5%.听
• Same-Property NOI growth of approximately 1%, as compared to the year ended December 31, 2024, including the estimated impact associated with announced and anticipated store closings.听
• General and administrative expenses within a range of $17.5 million to $18.0 million.听
  

The following table provides a reconciliation of the outlook range of the Company鈥檚 estimated Net Loss Attributable to the Company per Common Share 鈥� Diluted for the year ending December 31, 2025 to the Company鈥檚 estimated Core FFO Attributable to Common Stockholders per Common Share 鈥� Diluted and AFFO Attributable to Common Stockholders per Common Share 鈥� Diluted for the year ending December 31, 2025:

Earnings Conference Call & Webcast

The Company will host a conference call to present its operating results for the quarter ended June 30, 2025, on Wednesday, July 30, 2025 at 9:00 AM ET.

A live webcast of the call will be available on the Investor Relations page of the Company鈥檚 website at or at the link provided in the event details below. To access the call by phone, please go to the registration link provided in the event details below and you will be provided with dial-in details.

Event Details:

We encourage participants to register and dial into the conference call at least fifteen minutes ahead of the scheduled start time. A replay of the earnings call will be archived and available online through the Investor Relations section of the Company鈥檚 website at .

About CTO AG真人官方ty Growth, Inc.

CTO AG真人官方ty Growth, Inc. is a publicly traded real estate investment trust that owns and operates a portfolio of high-quality, retail-based properties located primarily in higher growth markets in the United States. CTO also externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE), a publicly traded net lease REIT.

We encourage you to review our most recent investor presentation and supplemental financial information, which is available on our website at .

Safe Harbor听

Certain statements contained in this press release (other than statements of historical fact) are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can typically be identified by words such as 鈥渂elieve,鈥� 鈥渆stimate,鈥� 鈥渆xpect,鈥� 鈥渋ntend,鈥� 鈥渁nticipate,鈥� 鈥渨ill,鈥� 鈥渃ould,鈥� 鈥渕ay,鈥� 鈥渟hould,鈥� 鈥減lan,鈥� 鈥減otential,鈥� 鈥減redict,鈥� 鈥渇orecast,鈥� 鈥減roject,鈥� and similar expressions, as well as variations or negatives of these words.听

Although forward-looking statements are made based upon management鈥檚 present expectations and beliefs concerning future developments and their potential effect upon the Company, a number of factors could cause the Company鈥檚 actual results to differ materially from those set forth in the forward-looking statements. Such factors may include, but are not limited to: the Company鈥檚 ability to remain qualified as a REIT; the Company鈥檚 exposure to U.S. federal and state income tax law changes, including changes to the REIT requirements; general adverse economic and real estate conditions; macroeconomic and geopolitical factors, including but not limited to inflationary pressures, interest rate volatility, distress in the banking sector, global supply chain disruptions, and ongoing geopolitical war; credit risk associated with the Company investing in structured investments; the ultimate geographic spread, severity and duration of pandemics such as the COVID-19 Pandemic and its variants, actions that may be taken by governmental authorities to contain or address the impact of such pandemics, and the potential negative impacts of such pandemics on the global economy and the Company鈥檚 financial condition and results of operations; the inability of major tenants to continue paying their rent or obligations due to bankruptcy, insolvency or a general downturn in their business; the loss or failure, or decline in the business or assets of PINE; the completion of 1031 exchange transactions; the availability of investment properties that meet the Company鈥檚 investment goals and criteria; the uncertainties associated with obtaining required governmental permits and satisfying other closing conditions for planned acquisitions and sales; and the uncertainties and risk factors discussed in the Company鈥檚 Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and other risks and uncertainties discussed from time to time in the Company鈥檚 filings with the U.S. Securities and Exchange Commission.听

There can be no assurance that future developments will be in accordance with management鈥檚 expectations or that the effect of future developments on the Company will be those anticipated by management. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to update the information contained in this press release to reflect subsequently occurring events or circumstances.听

Non-GAAP Financial Measures听

Our reported results are presented in accordance with accounting principles generally accepted in the United States of America (鈥淕AAP鈥�). We also disclose Funds From Operations (鈥淔FO鈥�), Core Funds From Operations (鈥淐ore FFO鈥�), Adjusted Funds From Operations (鈥淎FFO鈥�), Pro Forma Earnings Before Interest, Taxes, Depreciation and Amortization (鈥淧ro Forma Adjusted EBITDA鈥�), and Same-Property Net Operating Income (鈥淪ame-Property NOI鈥�), each of which are non-GAAP financial measures. We believe these non-GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs.听

FFO, Core FFO, AFFO, Pro Forma Adjusted EBITDA, and Same-Property NOI do not represent cash generated from operating activities and are not necessarily indicative of cash available to fund cash requirements; accordingly, they should not be considered alternatives to net income as a performance measure or cash flows from operating activities as reported on our statement of cash flows as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures.听

We compute FFO in accordance with the definition adopted by the Board of Governors of the National Association of AG真人官方 Estate Investment Trusts, or NAREIT.听听

NAREIT defines FFO as GAAP net income or loss adjusted to exclude real estate related depreciation and amortization, as well as extraordinary items (as defined by GAAP) such as net gain or loss from sales of depreciable real estate assets, impairment write-downs associated with depreciable real estate assets and impairments associated with the implementation of current expected credit losses on commercial loans and investments at the time of origination, including the pro rata share of such adjustments of unconsolidated subsidiaries. The Company also excludes the gains or losses from sales of assets incidental to the primary business of the REIT which specifically include the sales of mitigation credits, subsurface sales, investment securities, and land sales, in addition to the mark-to-market of the Company鈥檚 investment securities and interest related to the 2025 Notes, if the effect is dilutive. To derive Core FFO, we modify the NAREIT computation of FFO to include other adjustments to GAAP net income related to gains and losses recognized on the extinguishment of debt, amortization of above- and below-market lease related intangibles, and other unforecastable market- or transaction-driven non-cash items, as well as adding back the interest related to the 2025 Notes, if the effect is dilutive. To derive AFFO, we further modify the NAREIT computation of FFO and Core FFO to include other adjustments to GAAP net income related to non-cash revenues and expenses such as straight-line rental revenue, non-cash compensation, and other non-cash amortization. Such items may cause short-term fluctuations in net income but have no impact on operating cash flows or long-term operating performance. We use AFFO as one measure of our performance when we formulate corporate goals.听

To derive Pro Forma Adjusted EBITDA, GAAP net income or loss attributable to the Company is adjusted to exclude real estate related depreciation and amortization, as well as extraordinary items (as defined by GAAP) such as net gain or loss from sales of depreciable real estate assets, impairment write-downs associated with depreciable real estate assets, impairments associated with the implementation of current expected credit losses on commercial loans and investments at the time of origination, including the pro rata share of such adjustments of unconsolidated subsidiaries, non-cash revenues and expenses such as straight-line rental revenue, amortization of deferred financing costs, above- and below-market lease related intangibles, non-cash compensation, other non-recurring items such as termination fees, forfeitures of tenant security deposits, and certain adjustments to reconciliation estimates related to reimbursable revenue for recently acquired properties, and other non-cash income or expense. The Company also excludes the gains or losses from sales of assets incidental to the primary business of the REIT which specifically include the sales of mitigation credits, subsurface sales, investment securities, and land sales, in addition to the mark-to-market of the Company鈥檚 investment securities. Cash interest expense is also excluded from Pro Forma Adjusted EBITDA, and GAAP net income or loss is adjusted for the annualized impact of acquisitions, dispositions and other similar activities.听

To derive Same-Property NOI, GAAP net income or loss attributable to the Company is adjusted to exclude real estate related depreciation and amortization, as well as extraordinary items (as defined by GAAP) such as net gain or loss from sales of depreciable real estate assets, impairment write-downs associated with depreciable real estate assets, impairments associated with the implementation of current expected credit losses on commercial loans and investments at the time of origination, including the pro rata share of such adjustments of unconsolidated subsidiaries, non-cash revenues and expenses such as straight-line rental revenue, amortization of deferred financing costs, above- and below-market lease related intangibles, non-cash compensation, other non-recurring items such as termination fees, forfeitures of tenant security deposits, and certain adjustments to reconciliation estimates related to reimbursable revenue for recently acquired properties, and other non-cash income or expense. Interest expense, general and administrative expenses, investment and other income or loss, income tax benefit or expense, real estate operations revenues and direct cost of revenues, management fee income, and interest income from commercial loans and investments are also excluded from Same-Property NOI. GAAP net income or loss is further adjusted to remove the impact of properties that were not owned for the full current and prior year reporting periods presented. Cash rental income received under the leases pertaining to the Company鈥檚 assets that are presented as commercial loans and investments in accordance with GAAP is also used in lieu of the interest income equivalent.听

FFO is used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers primarily because it excludes the effect of real estate depreciation and amortization and net gains or losses on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. We believe that Core FFO and AFFO are additional useful supplemental measures for investors to consider because they will help them to better assess our operating performance without the distortions created by other non-cash revenues or expenses. We also believe that Pro Forma Adjusted EBITDA is an additional useful supplemental measure for investors to consider as it allows for a better assessment of our operating performance without the distortions created by other non-cash revenues, expenses or certain effects of the Company鈥檚 capital structure on our operating performance. We use Same-Property NOI to compare the operating performance of our assets between periods. It is an accepted and important measurement used by management, investors and analysts because it includes all property-level revenues from the Company鈥檚 properties, less operating and maintenance expenses, real estate taxes and other property-specific expenses (鈥淣et Operating Income鈥� or 鈥淣OI鈥�) of properties that have been owned and stabilized for the entire current and prior year reporting periods. Same-Property NOI attempts to eliminate differences due to the acquisition or disposition of properties during the particular period presented, and therefore provides a more comparable and consistent performance measure for the comparison of the Company鈥檚 properties. FFO, Core FFO, AFFO, Pro Forma Adjusted EBITDA, and Same-Property NOI may not be comparable to similarly titled measures employed by other companies.

Contact:
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