CTO Realty Growth Reports Revenue Increase but Significant Net Loss in Q2 2025

CTO Realty Growth, Inc. reported a significant decline in financial performance for the second quarter of 2025, with total revenues reaching $37.6 million, up from $28.8 million in the same period last year. The increase in revenue was primarily driven by a 29% rise in income from properties, which generated $33.4 million compared to $25.9 million in the prior year. However, the company recorded a net loss attributable to common stockholders of $25.3 million, a stark contrast to the net income of $0.7 million reported in the second quarter of 2024. This loss was largely attributed to a $20.4 million loss on the extinguishment of debt related to the settlement of the 2025 Notes.

For the first half of 2025, CTO Realty Growth's total revenues increased to $73.4 million from $57.0 million in the same period of 2024. The company’s income properties segment contributed $65.0 million, reflecting a 28.8% increase from $50.5 million in the previous year. The management services segment also saw a slight increase in revenue, totaling $2.4 million compared to $2.2 million in the prior year. However, the company did not generate any revenue from real estate operations in the first half of 2025, as it had sold its portfolio of subsurface interests in 2024.

In terms of strategic developments, CTO Realty Growth acquired a multi-tenant income property, Ashley Park, for $79.5 million during the first half of 2025. This acquisition is part of the company's ongoing strategy to expand its portfolio of income-producing properties, which now includes 24 commercial real estate properties across seven states, totaling 5.3 million square feet of gross leasable space. The company has also maintained a focus on managing its investment in Alpine Income Property Trust, Inc. (PINE), which is valued at $34.8 million as of June 30, 2025.

Operationally, CTO Realty Growth reported an increase in general and administrative expenses, totaling $9.1 million for the first half of 2025, compared to $7.7 million in the same period last year. This increase was attributed to a higher employee count and increased compensation. The company’s total assets grew to $1.23 billion as of June 30, 2025, up from $1.18 billion at the end of 2024, primarily due to the acquisition of new properties and investments.

Looking ahead, CTO Realty Growth anticipates continued investment in income-producing properties, with a target range of $100 million to $200 million for 2025. The company plans to fund these acquisitions through a combination of cash on hand, cash from operations, and proceeds from the sale of properties through 1031 like-kind exchanges. Despite the challenges faced in the first half of 2025, the company remains focused on its growth strategy and maintaining liquidity to support its operations and capital requirements.