In the case of REITs ( XLRE ), many have underperformed over the past few years thanks to higher for longer interest rates. However, if you're a long-term investor, this has offered you a chance to pick up some quality REITsContributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their ...

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against CTO Realty Growth, Inc. for possible violations of federal securities laws and unlawful business practices [1][2] Group 1: Investigation Details - The investigation is initiated on behalf of CTO stockholders to assess the legality of the company's business practices [1] - Wolfpack Research published a report alleging "manipulative" accounting practices by CTO, particularly regarding the definition of Adjusted Funds From Operation [2] - The report also claims that management utilized a "sham loan" to hide issues with a significant tenant and anticipates potential future dilution due to financial reserves [2] Group 2: Stock Performance - Following the allegations, CTO's stock price decreased by $0.98, closing at $17.10 per share [2]

Core Viewpoint - The article discusses the significant decline in share prices of CTO Realty Growth, Inc. following allegations from Wolfpack Research regarding misleading statements about dividend sustainability and questionable financial practices [1][2]. Group 1: Allegations and Investigations - Wolfpack Research published a report accusing CTO of misleading investors about its dividend sustainability and engaging in dubious financial activities, prompting Hagens Berman to investigate potential violations of securities laws [1][2]. - The investigation focuses on CTO's assurances regarding adherence to accounting rules and the use of non-GAAP accounting metrics, particularly the definition of Adjusted Funds From Operation (AFFO) [2][4]. - Wolfpack's report claims that CTO's management has misrepresented the quality of its real estate portfolio and asset values, highlighting financial distress in some properties and reliance on dilution to cover a $38 million dividend shortfall [3][4]. Group 2: Financial Practices and Management - The report criticizes CTO's management for using a manipulative definition of AFFO that excludes recurring capital expenditures, which is not consistent with practices of peer REITs, and suggests that this has inflated management bonuses by $8 million [4]. - Hagens Berman's investigation aims to determine if CTO misled investors regarding the quality of its real estate portfolio and the propriety of its financial reporting practices [4]. Group 3: Call to Action for Investors - Hagens Berman encourages CTO investors who have experienced substantial losses to come forward and assist in the investigation, as well as whistleblowers with non-public information [5][6]. - The firm highlights the potential for whistleblowers to receive rewards under the SEC Whistleblower program for providing original information that leads to successful recovery [5].

Core Viewpoint - CTO Realty Growth will report its financial and operating results for Q2 2025 on July 29, 2025, after market close, with a conference call scheduled for July 30, 2025, at 9:00 AM ET [1]. Group 1 - A live webcast of the conference call will be available on the Company's Investor Relations page [2]. - Participants are encouraged to register and dial in at least fifteen minutes before the call starts [3]. - A replay of the earnings call will be archived and accessible online through the Investor Relations section of the Company's website [3]. Group 2 - CTO Realty Growth, Inc. owns and operates high-quality, open-air shopping centers in the Southeast and Southwest markets of the United States [4]. - The Company also manages and holds a significant interest in Alpine Income Property Trust, Inc. [4]. - Recent investor presentations and supplemental financial information can be reviewed on the Company's website [4].

Core Viewpoint - The share price of CTO Realty Growth, Inc. significantly declined following allegations from Wolfpack Research regarding misleading statements about dividend sustainability and questionable financial practices [1]. Group 1: Allegations and Investigations - Hagens Berman, a national shareholders rights firm, has initiated an investigation into CTO Realty Growth, Inc. to determine if the company violated securities laws and is urging affected investors to report their losses [2]. - The investigation focuses on CTO's claims of adhering to accounting rules and the use of non-GAAP accounting metrics, particularly concerning the quality of its real estate portfolio and reported asset values [3][5]. Group 2: Financial Distress and Management Practices - Wolfpack Research's report indicates that CTO's management has misrepresented the quality of its properties, revealing that some are in severe financial distress and that the company relies on dilution to cover a $38 million dividend shortfall [4]. - The report criticizes CTO's definition of Adjusted Funds From Operation (AFFO), claiming it excludes recurring capital expenditures, which is not consistent with industry peers, and suggests that management's compensation is inflated based on this metric [5]. Group 3: Whistleblower Information - Whistleblowers with non-public information about CTO Realty Growth are encouraged to assist in the investigation, with potential rewards under the SEC Whistleblower program for original information leading to successful recovery [6].

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Core Points - CTO Realty Growth, Inc. has declared a quarterly cash dividend of $0.38 per share for the second quarter of 2025, representing an annualized yield of approximately 8.5% based on the stock's closing price on May 23, 2025 [1] - The cash dividend is payable on June 30, 2025, to stockholders of record as of June 12, 2025, with the ex-dividend date also on June 12, 2025 [2] - Additionally, a quarterly cash dividend of $0.39844 per share for the Company's 6.375% Series A Cumulative Redeemable Preferred Stock has been authorized for the same period, also payable on June 30, 2025 [3] Company Overview - CTO Realty Growth, Inc. specializes in owning and operating high-quality, open-air shopping centers in the Southeast and Southwest markets of the United States [4] - The Company also manages and holds a significant interest in Alpine Income Property Trust, Inc. [4]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The service offers a free two-week trial for potential investors to explore exclusive income-focused portfolios [1] Group 2 - The article discusses the distinction between being 'rich' and 'wealthy', highlighting that 'rich' refers to those who receive large paychecks, while 'wealthy' refers to those who pay them [2] - The author emphasizes a defensive investment strategy with a medium- to long-term horizon [2]

Core Insights - The article emphasizes the importance of thorough analysis in identifying investment opportunities and market trends, highlighting the author's extensive experience in the financial sector [1]. Group 1 - The author has a background in writing for Fade The Market on Seeking Alpha, focusing on providing insightful analysis and research on investment opportunities [1]. - The author is no longer involved with Fade The Market, indicating a shift in focus or strategy [1]. - The expertise developed over ten years includes evaluating market trends and optimizing financial portfolios [1].

Financial Data and Key Metrics Changes - The company reported a Core FFO of $14.4 million for Q1 2025, an increase of $3.7 million compared to $10.7 million in Q1 2024 [15] - On a per share basis, Core FFO was $0.46 in Q1 2025 compared to $0.48 in Q1 2024, primarily due to reduced leverage and downtime from re-leasing anchor spaces [16] - The net debt to EBITDA ratio was 6.6 times at the end of the quarter, slightly elevated from the previous quarter but a full turn lower than one year ago [15] Business Line Data and Key Metrics Changes - The company signed over 112,000 square feet of new leases, renewals, and extensions at an average rent of $24.14 per square foot, nearly 25% higher than the in-place portfolio average of $19.41 per square foot [7] - The portfolio was 93.8% leased and 91% occupied at quarter end [9] - The signed but not opened leasing pipeline stands at $4 million of annual base rent, representing 4% of cash rents at quarter end [10] Market Data and Key Metrics Changes - The company acquired Ashley Park for $79.8 million, with a cash cap rate near the high end of guidance, indicating strong market interest [5] - There is active tenant interest for nearly half of the 40,000 square feet of vacancy at Ashley Park, with 200,000 square feet of shop space paying below market rent [6] Company Strategy and Development Direction - The company continues to focus on acquiring properties in growth markets in the Southeast and Southwest, with a strong pipeline of potential acquisitions [6] - The management is optimistic about the leasing outlook for anchor spaces previously leased to tenants that filed for bankruptcy, expecting a positive cash leasing spread of 40% to 60% [9] - The company is also considering recycling assets into higher yielding properties as market conditions improve [32] Management's Comments on Operating Environment and Future Outlook - Management noted that despite tariff uncertainties, the company is well-positioned with high-quality properties and a diversified tenant base [10] - The management reaffirmed full-year 2025 guidance for Core FFO per share of $1.80 to $1.86 and AFFO of $1.93 to $1.98, with consistent underlying assumptions [18] Other Important Information - The company executed two SOFR swaps, fixing SOFR for $100 million of principal at a weighted average rate of 3.32% for five years, reducing the applicable interest rate significantly [12] - The company extinguished $51 million of convertible notes, resulting in a charge of approximately $20.5 million to be recorded in Q2 [14] Q&A Session Summary Question: Can you provide more detail on the anchor space negotiations? - Management indicated that leasing activity has been strong and consistent, with no pauses in discussions despite market volatility [21] Question: What drove the new lease spreads? - The increase in lease spreads was primarily due to two significant leases that accounted for a large portion of new leasing activity, driving spreads over 80% [23] Question: What is the expected CapEx for bankrupt tenant spaces? - The expected CapEx for re-leasing is in the range of $9 million to $12 million, with little spent so far as tenants need to complete their work before reimbursements [30][58] Question: How does the company plan to fund new investments? - The company plans to handle funding internally with liquidity and is considering selling remaining office properties to enhance capital [32] Question: Have cap rates changed since the tariff announcement? - Management noted that cap rates for core assets have remained stable or decreased, with strong demand in the shopping center market [49] Question: What is the timeline for marking to market on recent acquisitions? - Management expects to see movement in lease rates for recent acquisitions by mid-next year as they work through tenant transitions [52]