CTO Realty Growth(US:CTO) Globenewswire·2025-10-06 03:53Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against CTO Realty Growth, Inc. due to allegations of misleading statements regarding the sustainability of dividends and financial practices [4][6]. Group 1: Legal Investigation - The firm is encouraging investors who suffered losses in CTO between February 18, 2021, and June 24, 2025, to discuss their legal rights [1][4]. - There is a deadline of October 7, 2025, for investors to seek the role of lead plaintiff in a federal securities class action against CTO [4][8]. Group 2: Allegations Against CTO - The complaint alleges that CTO and its executives violated federal securities laws by making false statements and failing to disclose critical financial information [6]. - Specific allegations include that CTO's dividends were less sustainable than claimed, and that deceptive practices were used to inflate its Adjusted Funds From Operations (AFFO) [6][7]. Group 3: Financial Concerns - A report by Wolfpack Research criticized CTO for not generating enough cash to cover its recurring capital expenditures and dividends since converting to a REIT in 2021 [7]. - The report highlighted that CTO increased its shares outstanding by 70% since December 2022 to cover a $38 million dividend shortfall from 2021 to 2024 [7]. - CTO's financial situation is precarious, with only $8.4 million in cash against quarterly dividends of $14 million and average recurring capital expenditures of $5.7 million [7]. Group 4: Market Reaction - Following the release of the Wolfpack Report, CTO's stock price fell by $0.98 per share, or 5.42%, closing at $17.10 per share on June 25, 2025 [8].