CTO Realty Growth (CTO) Q4 2025 earnings summary

Executive summary

• Achieved record leasing activity in 2025, executing over 670,000 sq ft and driving leased occupancy to 95.9% at year-end, with a 31% comparable leasing spread and a focus on Southeast and Southwest U.S. shopping centers.

• Closed $166M in investments at a 9% initial cash yield and completed $85.1M in property dispositions, including the $65.2M Pompano Citi Centre acquisition and $78M Shops at Legacy North sale.

• Net income attributable to common stockholders was $28.3M for Q4 and $0.08 per diluted share for the full year, a significant turnaround from prior year losses.

• SNO pipeline stands at $6.1M, representing 5.8% of annual cash base rents, positioning for future earnings growth.

• Portfolio focused on open-air shopping centers in high-growth Southeast and Southwest MSAs, with 84% of ABR from Georgia, Florida, Texas, and North Carolina.

Financial highlights

• Q4 2025 Core FFO per diluted share was $0.49; AFFO per share was $0.51; full-year Core FFO was $60.5M and $1.87 per share.

• Shopping center same-property NOI increased 4.3% in Q4 and 4.4% for the year; total same-property NOI rose 1.1% in Q4 and 3.2% for the year.

• Total revenues for 2025 were $149.5M, up from $124.5M in 2024.

• Net income attributable to common stockholders for Q4 2025 was $28.3M, compared to a loss of $15.2M in Q4 2024.

• Aggregate gains from property sales totaled $20.9M.

Outlook and guidance

• 2026 Core FFO per diluted share guidance: $1.98–$2.03; AFFO per share: $2.11–$2.16, representing 7.2% and 8.4% growth at the midpoint, respectively.

• Investment volume expected between $100M–$200M at 8.0–8.5% initial cash yield and 3.5–4.5% same-property NOI growth for shopping centers.

• SNO pipeline expected to contribute about half of rent in 2026 and fully in 2027, with recognition ramping up in the latter half of each year.

• General and administrative expenses forecasted at $19.5–$20.0M.