CTO · CTO Realty Growth, Inc.

CTO Realty Growth delivered a materially stronger first quarter in 2026, marked by robust operational execution across leasing, acquisition, and capital allocation. Core FFO per diluted share rose 13% year-over-year to $0.52, driven by 6.8% same-property NOI growth for shopping centers — a figure that remains healthy at 4.2% even after excluding non-recurring recovery benefits. This outperformance reflects disciplined leasing activity: 146,000 square feet of comparable leases executed at a +14% cash rent spread, alongside portfolio-wide leased occupancy rising to 95.4%. The $81.6 million acquisition of Palms Crossing — a well-located, 98%-leased asset in McAllen, TX — directly supports the company’s strategy of targeting high-growth Sun Belt markets and adds embedded rent growth via two pad sites and cross-border demand drivers. Management’s decision to raise full-year 2026 Core FFO guidance to $2.06–$2.11 (up from $1.98–$2.03) and expand investment volume guidance to $175–$250 million underscores confidence in both the $6.2 million SNO pipeline (5.5% of in-place cash ABR) and continued execution capability. The repayment of the $30.0 million Watters Creek preferred investment further strengthened balance sheet flexibility, while total liquidity stood at $124.3 million as of March 31, 2026. Though forward-looking statements caution against overreliance on guidance, the combination of elevated leasing spreads, accretive acquisition, and upwardly revised outlook positions CTO favorably relative to peers trading at lower FFO multiples with less growth visibility.