CTO Realty Growth, Inc.

CTO Realty Growth reported second-quarter core FFO of $18.4 million, up from $14.7 million in the prior-year quarter, and core FFO per diluted share of $0.53 versus $0.45. AFFO was $19.1 million, up from $15.3 million, and AFFO per diluted share was $0.55 versus $0.47. Shopping center same-property NOI increased 10.1% year over year in Q2; year-to-date shopping center same-property NOI increased 8.2%, or 7% excluding certain nonrecurring recovery benefits. The company raised full-year 2026 core FFO guidance to $2.09-$2.13 per diluted share from $2.06-$2.11 and AFFO guidance to $2.21-$2.25 from $2.19-$2.24. It also raised investment volume guidance to $300 million-$400 million from $175 million-$250 million and lifted shopping center same-property NOI growth guidance to 5%-6% from 3.5%-4.5%.

John Albright said the company’s strategy of owning high-quality shopping centers in growth markets, plus structured investments, continued to “produce results across all areas” of the business. He emphasized leasing momentum, a growing signed-but-not-open pipeline, disciplined capital recycling, and selective acquisitions as embedded growth drivers. His tone was upbeat and confident, repeatedly pointing to visible earnings tailwinds from new leases, anchor backfills, and outparcel development.

Philip Mays framed the quarter as a strong operating and financial period, with core FFO and AFFO both up meaningfully year over year. He highlighted total debt of $660.8 million, liquidity of $131.8 million, and net debt to pro forma adjusted EBITDA of 5.8x, down 0.6x from the prior quarter. He also noted $83.6 million of net proceeds from ATM equity issuance in Q2, the $17.8 million mortgage note due in August, and said the company expects to repay it with the revolver. On guidance, he cited the new ranges for core FFO, AFFO, investment volume, same-property NOI growth, and G&A expense of $20 million-$20.2 million.

Analysts focused on how quickly the signed-but-not-open pipeline would contribute, with management saying recognition should be fairly even through 2027 and that more than 90% should be online after the near-term ramp. Questions also centered on leasing up remaining big-box vacancies, the sale of the Atlanta asset and the New Mexico office property, and whether structured investments face reinvestment risk; management said rising rates could actually help future deal flow because borrowers may need alternative financing. Management also said the Carolina Pavilion sale was driven by an attractive tenant use case and that proceeds would initially be used to pay down debt.