Lawsuit was filed for Investors who lost money with shares in CTO Realty Growth, Inc. (NYSE: CTO)

An investor, who purchased shares of CTO Realty Growth, Inc. (NYSE: CTO), filed a lawsuit over alleged violations of Federal Securities Laws by CTO Realty Growth, Inc. in connection with certain allegedly false and misleading statements made between February 18, 2021 and June 24, 2025.

Investors who purchased shares of CTO Realty Growth, Inc. (NYSE: CTO) have certain options and for certain investors are short and strict deadlines running. Deadline: October 07, 2025. NYSE: CTO investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Winter Park, FL based CTO Realty Growth, Inc. is a publicly traded real estate investment trust that owns and operates a portfolio of high-quality, retail-based properties located primarily in higher growth markets in the United States. CTO Realty Growth, Inc. converted into a REIT in February 2021 and, as of December 31, 2024, owned 23 income properties in seven states, including Ashford Lane, a retail and dining center in Atlanta, Georgia.

Under guidelines established by the U.S. Securities and Exchange Commission ("SEC"), REITs must pay out at least 90% of their taxable profits to shareholders annually as dividends. In return, REIT companies are exempt from most corporate income tax. CTO has touted that its operation as a REIT "provides the tax-efficient organizational structure for [its] stockholders" that "will allow [it] to provide them with an attractive and sustainable dividend."

To measure its performance, CTO Realty Growth, Inc. uses the financial metric Adjusted Funds from Operations ("AFFO"). The AFFO of a REIT, though subject to varying methods of computation, is generally equal to the REIT's funds from operations with adjustments made for recurring capital expenditures (also referred to as "capex") used to maintain the quality of the REIT's underlying assets. Professional analysts tend to prefer AFFO because it takes into consideration additional costs incurred by the REIT as well as additional income sources, such as rent increases. Thus, analysts believe that AFFO provides for a more accurate base number when estimating present values and a better predictor of the REIT's future ability to pay dividends.

CTO Realty Growth, Inc. (NYSE: CTO) reported that its annual Total Revenue rose from $109.11 million in 2023 to $124.51 million in 2024, and that its Net Income of $5.53 million in 2023 turned into a Net Loss of $1.96 million in 2024.

On June 25, 2025, Wolfpack Research ("Wolfpack") published a report entitled "CTO: The B. Riley of REITs" (the "Wolfpack Report" or the "Report"), which compared CTO unfavorably to B. Riley, a financial services company that recently lost more than 90% of its value amid three years of losses, soured investments, delayed financial reports and revelations that the SEC had been investigating whether the firm gave shareholders an accurate picture of its health. Citing interviews with former employees and whistleblowers, the Wolfpack Report accused CTO of, among other things, "not generat[ing] enough cash to pay its recurring capex and cover its dividends since converting to a REIT in 2021" and instead "rel[ying] on dilution (increasing shares outstanding by 70% since December 2022) to cover a $38 million dividend shortfall from 2021 to 2024," employing a "manipulative definition of [AFFO] where they exclude recurring capex, unlike all of their self-identified shopping center REIT peers," and "us[ing] a sham loan to hide the collapse of a top tenant from shareholders at Ashford Lane." (Emphasis in original). Further, Wolfpack predicted imminent further dilution of the Company, noting that CTO has just $8.4 million in cash while facing quarterly dividends of $14 million and average recurring capital expenditures of $5.7 million per quarter, along with approximately $12 million in additional planned capital expenditures.

Shares of Shares of CTO Realty Growth, Inc. (NYSE: CTO) declined from $23.07 per share on August 12, 2022, to as low as $16.84 per share on June 26, 2025.

The plaintiff claims that between February 18, 2021 and June 24, 2025, the defendants made false and/or misleading statements and/or failed to disclose that CTO's dividends were less sustainable than Defendants had led investors to believe, that the Company used deceptive and unsustainable practices to artificially inflate its AFFO and overstate the true profitability of its Ashford Lane property, that accordingly, CTO's business and/or financial prospects were overstated, and that as a result, Defendants' public statements were materially false and misleading at all relevant times.

Those who purchased shares of CTO Realty Growth, Inc. (NYSE: CTO) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.