Investor Alert: Robbins LLP Informs Investors of the CTO Realty Growth, Inc. Class Action Lawsuit

Core Viewpoint - A class action lawsuit has been filed against CTO Realty Growth, Inc. for allegedly misleading investors about its financial health and sustainability of dividends during the specified period [1][2]. Allegations - The lawsuit claims that CTO Realty Growth misrepresented the sustainability of its dividends, which were less stable than communicated to investors [2]. - It is alleged that the company employed deceptive practices to inflate its Adjusted Funds from Operations (AFFO) and overstated the profitability of its Ashford Lane property [2]. - The complaint highlights that CTO's business and financial prospects were overstated, leading to investor misinformation [2]. Financial Concerns - A report by Wolfpack Research accused CTO of failing to generate sufficient cash to cover its recurring capital expenditures and dividends since its conversion to a REIT in 2021 [3]. - The report noted that CTO increased its shares outstanding by 70% since December 2022 to cover a $38 million dividend shortfall from 2021 to 2024 [3]. - CTO reportedly has only $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 an additional $12 million in planned capital expenditures [3]. Stock Impact - Following the publication of the report, CTO's stock price fell by over 5% [3]. Class Action Participation - Shareholders interested in participating as lead plaintiffs in the class action must submit their papers by October 7, 2025 [4]. - Shareholders can remain absent class members if they choose not to participate in the case [4]. Company Background - Robbins LLP is noted as a leader in shareholder rights litigation, focusing on helping shareholders recover losses and improve corporate governance [5].