CTO Posts $7.050 Million Loss, Raises 2026 Core FFO Outlook
Key Facts
CTO Realty Growth reported on October 27 results for the third quarter ended September 30, 2026, recording total revenue of $46.914 million, compared with $37.757 million in the same period of 2025. The company swung to a net loss of $7.050 million, compared with net income of $1.036 million a year earlier. Diluted loss was $0.19 per share, versus diluted earnings of $0.03 in the third quarter of 2025. At the same time, the company said diluted Core FFO per share grew 10% year over year and raised its annual guidance range for the metric. The results therefore pair an accounting net loss with improvement in an operating metric used by the company; the two should be distinguished.
The increase in revenue came as income from income properties rose to $38.451 million from $33.439 million a year earlier. Interest income from loans and commercial investments also climbed to $6.942 million, compared with $3.142 million in the third quarter of 2025. These items show expansion in both property income and financing and commercial investment income during the period. Revenue growth, however, did not prevent a net loss, after the company had reported net income in the year-earlier period. The company also recorded diluted loss per share instead of the profit reported a year earlier.
In property operations, same-center net operating income at shopping centers grew 3.8% in the third quarter compared with the corresponding period of 2025. Growth was 6.2% for the nine months ended September 30, compared with the same nine months of the prior year. But occupancy across the leased real estate portfolio was 92.4% at the end of September, down 180 basis points year over year. By contrast, occupancy at same-center shopping centers reached 95.8%, up 90 basis points annually. The comparison shows a divergence between occupancy across the overall portfolio and performance at same centers, alongside growth in the latter's operating income.
During the quarter, CTO signed 38 new leases, renewals and extensions covering a total of 467,000 square feet. Same-property leasing covered 396,000 square feet, while the average cash leasing spread increased 7%. The company said its updated annual guidance reflects leasing momentum and investments completed since the start of the year. The chief executive said the company had invested $472 million year to date at a 9.4% weighted average return. He added that it had a signed, unopened leasing pipeline worth $5.6 million, leasing activity that management included among the factors underpinning its updated guidance.
The company raised its 2026 diluted Core FFO per share outlook to a range of $2.11–$2.14, from a previous range of $2.09–$2.13. It also updated its diluted AFFO per share outlook to $2.22–$2.25, compared with the previous range of $2.21–$2.25. These ranges are estimates for Core FFO and AFFO and do not represent a forecast for accounting net income. The company completed investments of $102.3 million in the quarter at a 9.1% weighted average return. These included the $63.3 million purchase of Zona Rosa center in Kansas City.
After the quarter ended, CTO announced additional investments totaling $135.8 million, including a disclosed acquisition worth $103 million and a $32 million preferred equity investment in a joint venture. These transactions brought the company's year-to-date investments to $472.3 million as of the October 27 earnings announcement. On the financing side, liquidity was $254.6 million on September 30, including $245.8 million in undrawn credit commitments and $8.8 million in cash. The company also closed a $1 billion unsecured credit facility, increasing total commitments by $250 million. The amendment extended the average maturity of outstanding debt to 4.3 years from 1.6 years, and the nearest maturity is now in September 2029.