CTO Realty Growth 2025 Q2 Earnings Mixed Results with Net Income Drop

CTO Realty Growth reported its fiscal 2025 Q2 earnings on July 29, 2025. Despite revenue growth, the company fell short of net income expectations, reporting a significant loss. CTO Realty reaffirmed stable guidance, indicating confidence in ongoing operations and future leasing momentum. The net loss signals challenges, but operational metrics demonstrate potential for recovery. Guidance remained unchanged, reflecting optimism for 2026.

Revenue
CTO Realty Growth achieved a total revenue of $37.64 million in Q2 2025, marking a 30.5% increase from $28.84 million in Q2 2024. Income from properties contributed significantly, generating $33.38 million. Management fee income added $1.25 million, and interest income from commercial loans and investments reached $3.02 million, culminating in the strong total revenue figure.

Earnings/Net Income
CTO Realty Growth's earnings report for Q2 2025 revealed a deepened loss of $0.77 per share, a stark increase from the $0.03 loss per share in Q2 2024. The net loss amounted to $23.42 million, a considerable decline from the net income of $1.18 million in the previous year’s quarter. Overall, the EPS results were unfavorable.

Price Action
The stock price of CTO Realty Growth edged up 0.34% during the latest trading day, edged down 0.51% during the most recent full trading week, and edged up 1.45% month-to-date.

Post-Earnings Price Action Review
CTO Realty Growth’s post-earnings strategy of purchasing shares 30 days after a revenue increase has consistently delivered moderate returns over the past three years. Despite the revenue growth, the strategy underperformed against the benchmark, achieving a compound annual growth rate (CAGR) of 1.43% and total returns of 6.48%. The benchmark return was notably higher at 59.06%. The strategy experienced no maximum drawdown, but had a low Sharpe ratio of 0.06, with volatility measured at 23.74%. These metrics indicate that while the strategy provided some gains, it carried a higher risk with less reward compared to standard market benchmarks.

CEO Commentary
"Our 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," stated John P. Albright, President and Chief Executive Officer of CTO Realty Growth. "We believe that this leasing activity will provide the Company with earnings tailwinds into 2026."

Guidance
CTO Realty Growth reaffirmed its full-year Core FFO and AFFO guidance per diluted share attributable to common stockholders. The Company expects the ongoing leasing activity to contribute positively to earnings, providing a favorable outlook as it progresses into 2026.

Additional News
CTO Realty Growth has been actively involved in capital markets activities recently, notably fully retiring its Convertible Senior Notes. This move simplifies CTO's capital structure and reflects strategic financial management. Additionally, CTO declared a cash dividend for its common stock and Series A Preferred Stock for Q2 2025, maintaining its payout levels from previous quarters. The dividend announcement underscores CTO’s commitment to delivering shareholder value. Furthermore, the company is strengthening its management team to enhance operational efficiencies and strategic decision-making, with key appointments expected to drive future growth in line with market expansion strategies.