CTO Realty Growth(US:CTO) Prnewswireยท2025-08-16 14:00Core Viewpoint - A class action lawsuit has been filed against CTO Realty Growth, Inc. and certain officers for alleged violations of federal securities laws during the Class Period from February 18, 2021, to June 24, 2025, seeking damages for misleading statements regarding the company's business and financial health [1][5]. Company Overview - CTO Realty Growth, Inc. is a publicly traded real estate investment trust (REIT) that owns and operates a portfolio of retail-based properties primarily in higher growth markets in the U.S. The company converted to a REIT in February 2021 and owned 23 income properties across seven states as of December 31, 2024 [3]. Financial Performance Metrics - CTO uses Adjusted Funds from Operations (AFFO) as a key performance metric, which is generally calculated as funds from operations adjusted for recurring capital expenditures. Analysts prefer AFFO as it provides a more accurate measure of a REIT's ability to pay dividends [4]. Allegations in the Lawsuit - The lawsuit alleges that CTO's dividends were less sustainable than represented, that deceptive practices were used to inflate AFFO, and that the company's financial prospects were overstated. It claims that public statements made by the defendants were materially false and misleading [5]. Recent Developments - A report by Wolfpack Research criticized CTO, claiming it has not generated enough cash to cover dividends and capital expenditures since becoming a REIT. The report highlighted a significant increase in shares outstanding and predicted further dilution due to cash shortfalls [6]. Following the report, CTO's stock price fell by 5.42% to close at $17.10 per share on June 25, 2025 [7].