CTO · CTO Realty Growth, Inc.

CTO Realty Growth, Inc. reported strong Q1 2026 results, with revenue reaching $41.2 million, up 15.0% from $35.8 million in the prior year quarter. This growth stems from the overall expansion of the Company’s income property portfolio, as highlighted in management’s discussion. Gross profit followed suit at $31.0 million, a 15.2% increase from $26.9 million, maintaining a healthy 75.3% gross margin. The portfolio's contribution underscores the stability of rental income streams in the Company's operations.

Net income more than tripled to $6.2 million from $2.3 million, delivering diluted EPS of $0.13 compared to $0.01. This outsized 174.4% growth reflects the combined impact of higher operating results and favorable financial dynamics. Investors benefit from this earnings expansion, which signals improving bottom-line execution amid portfolio maturation.

Strategically, the Company’s focus has shifted under the Exclusivity and Right of First Offer Agreement with PINE (ROFO Agreement), precluding most single-tenant net lease investments. Income property strategy now centers on shopping centers, where tenants typically cover proportionate operating expenses, though property management costs apply. Our Board and management consistently review capital allocation to maximize long-term stockholder returns, balancing growth with liquidity. Future dispositions are expected to qualify for like-kind exchange tax deferral, preserving capital efficiency.

These results position CTO for sustained performance, driven by core property operations and prudent allocation in a focused portfolio strategy.