Core 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, with a deadline for investors to seek lead plaintiff status in a class action lawsuit by October 7, 2025 [1][3][6]. Group 1: Allegations Against CTO - The complaint alleges that CTO and its executives violated federal securities laws by making false and misleading statements about the sustainability of dividends and the true profitability of its Ashford Lane property [3]. - The Wolfpack Research report claims CTO has not generated enough cash to cover its recurring capital expenditures and dividends since converting to a REIT in 2021, relying on share dilution to cover a $38 million dividend shortfall from 2021 to 2024 [4]. - The report also accuses CTO of using a manipulative definition of Adjusted Funds From Operations (AFFO) and hiding financial issues related to a major tenant at Ashford Lane [4]. Group 2: Financial Impact - 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 [5]. - CTO is reported to have only $8.4 million in cash while facing quarterly dividends of $14 million and average recurring capital expenditures of $5.7 million, indicating potential financial strain [4]. Group 3: Legal Proceedings - Investors who purchased CTO securities between February 18, 2021, and June 24, 2025, are encouraged to contact Faruqi & Faruqi to discuss their legal rights and options [1][6]. - The firm is also seeking information from whistleblowers, former employees, and shareholders regarding CTO's conduct [6].

Core 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 [3][5]. Group 1: Legal Investigation - The firm is reminding investors of the October 7, 2025 deadline to seek the role of lead plaintiff in a federal securities class action against CTO [3]. - Investors who suffered losses in CTO between February 18, 2021, and June 24, 2025, are encouraged to contact the firm to discuss their legal rights [1][3]. 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 [5]. - 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) [5]. - The Wolfpack Research report criticized CTO for not generating enough cash to cover dividends and capital expenditures, leading to a reliance on share dilution [6]. Group 3: Financial Impact - Following the release of the Wolfpack Report, CTO's stock price fell by $0.98, or 5.42%, closing at $17.10 per share on June 25, 2025 [7]. - The report highlighted that CTO has only $8.4 million in cash while facing quarterly dividends of $14 million and average recurring capital expenditures of $5.7 million [6].

Core Viewpoint - The complaint against CTO Realty Growth alleges violations of federal securities laws, including misleading statements about the sustainability of dividends and the true profitability of its properties, leading to an overstatement of the company's financial prospects [2][3]. Group 1: Allegations and Financial Practices - The complaint claims that CTO's dividends were less sustainable than represented, and the company used deceptive practices to inflate its Adjusted Funds From Operations (AFFO) [2]. - Wolfpack Research's report criticized CTO for not generating sufficient cash to cover recurring capital expenditures and dividends since its conversion to a REIT in 2021, relying instead on share dilution [3]. - 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, and employed a manipulative definition of AFFO that excluded recurring capital expenditures [3]. Group 2: Financial Position and Market Reaction - As of the report, CTO had only $8.4 million in cash while facing quarterly dividends of $14 million and average recurring capital expenditures of $5.7 million, along with additional planned capital expenditures of approximately $12 million [3]. - 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 [4].

As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) CTO's dividends were less sustainable than Defendants had led investors to believe; (ii) the Company used deceptive and unsustainable practices to artificially inflate its AFFO and overstate the true profitability of its Ashford Lane property; (iii) accordingly, CTO's business and/or financial prospects were overstated ...

Core Viewpoint - The complaint against CTO Realty Growth alleges violations of federal securities laws, including misleading statements about the sustainability of dividends and the true profitability of its properties, leading to an overstatement of the company's financial prospects [2]. Group 1: Allegations and Financial Practices - The complaint claims that CTO's dividends were less sustainable than represented, and the company used deceptive practices to inflate its Adjusted Funds From Operations (AFFO) [2]. - Wolfpack Research's report criticized CTO for not generating sufficient cash to cover recurring capital expenditures and dividends since its conversion to a REIT in 2021, relying instead on share dilution [3]. - 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 [3]. Group 2: Financial Position and Market Reaction - 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, along with additional planned capital expenditures of approximately $12 million [3]. - 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 [4].

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B. Riley estimated it swung to a profit in the second quarter, as the firm continues its efforts to curb the financial strain caused by soured investments https://t.co/gQK7MpOGuz ...

Core Viewpoint - A securities class action lawsuit has been filed against CTO Realty Growth, Inc, alleging misleading statements regarding the sustainability of dividends and the true profitability of its properties, particularly Ashford Lane [1][2]. Group 1: Allegations and Financial Practices - The lawsuit claims that CTO's dividends were less sustainable than previously communicated to investors [2]. - It is alleged that the company used deceptive practices to inflate its Adjusted Funds from Operations (AFFO) and overstate profitability [2]. - The complaint highlights that CTO has relied on increasing shares outstanding by 70% since December 2022 to cover a $38 million dividend shortfall from 2021 to 2024 [3]. Group 2: Impact of Wolfpack Research Report - On June 25, 2025, Wolfpack Research published a report that compared CTO unfavorably to B. Riley, indicating serious financial issues [3]. - The report accused CTO of not generating enough cash to cover recurring capital expenditures and dividends since its conversion to a REIT in 2021 [3]. - Wolfpack predicted imminent further dilution for CTO, noting the company had only $8.4 million in cash while facing quarterly dividends of $14 million and average recurring capital expenditures of $5.7 million [3]. Group 3: Market Reaction - Following the publication 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 [4].

Core 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 financial health and dividend sustainability [1][6]. 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 [4]. - REITs are required to distribute at least 90% of their taxable profits as dividends to benefit from corporate income tax exemptions. CTO claims that its REIT structure allows for tax-efficient operations and sustainable dividends [5]. Allegations and Financial Concerns - The lawsuit alleges that CTO's dividends were less sustainable than represented, and the company used deceptive practices to inflate its Adjusted Funds from Operations (AFFO) and overstate profitability, particularly regarding the Ashford Lane property [6]. - A report by Wolfpack Research criticized CTO for not generating sufficient cash to cover recurring capital expenditures and dividends since its conversion to a REIT, indicating a reliance on share dilution to address a $38 million dividend shortfall from 2021 to 2024 [7]. - The report highlighted that CTO's AFFO definition excluded recurring capital expenditures, which is inconsistent with industry peers, and noted that the company faced significant financial challenges, including only $8.4 million in cash against quarterly dividends of $14 million and additional capital expenditures [7]. 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].

Financial Data and Key Metrics Changes - In Q2 2025, gross written premium grew 16% year over year to $299 million, up from $258 million in Q2 2024 [16] - Revenue increased by 31% to $117 million, up from $90 million in Q2 2024 [17] - Consolidated net loss ratio improved by 46 percentage points year over year to 47% [18] - Q2 net income was $1 million, a $41 million improvement compared to Q2 2024 [21] - Adjusted net income for Q2 was $17 million, a $37 million improvement compared to Q2 2024 [22] Business Line Data and Key Metrics Changes - The hybrid fronting programs contributed $24 million in organic growth, while new programs added $23 million [16] - The HJP segment saw a 9% year over year reduction in gross written premium due to reduced CapEx exposure from existing homes [16] - Premium retention increased by nine percentage points to 39%, up from 30% in Q2 2024 [17] Market Data and Key Metrics Changes - The partnership with Baldwin Group is expected to triple access to new home closings, enhancing premium growth and geographic diversification [10] - The company anticipates that the Baldwin partnership will support continued expansion within the new homes channel [17] Company Strategy and Development Direction - The strategic plan focuses on three pillars: strategic diversification, optimizing risk management, and strengthening financial position [6][7] - The company aims to build a well-balanced portfolio of insurance risks to deliver superior returns on capital [10] - The long-term financial targets include gross written premium over $2 billion and adjusted net income over $125 million by 2028 [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term trajectory of the business, citing strong performance across key financial metrics [14] - The company plans to remain opportunistic in adjusting premium retention based on market conditions and return on equity [18] - Management acknowledged the challenges in the homeowners insurance market but emphasized the importance of proactive services to mitigate risks [44][46] Other Important Information - The company raised its full-year guidance for gross written premium from $1.05 billion - $1.1 billion to $1.07 billion - $1.1 billion [24] - The sale of the homebuilder distribution network is expected to record a gain of approximately $90 million in consolidated financial statements [22] Q&A Session Summary Question: Discussion on guidance for 2025 and rate approvals for HHIP product - Management indicated that while substantial rate increases are largely completed, they will continue to take smaller rate actions as needed [29] Question: Clarification on net loss ratio and cat loss ratio components - Management confirmed unchanged guidance for the second half, with specific cat load expectations for Q3 and Q4 [33] Question: Inquiry about reinsurance structure and per event limits - Management explained that they do not disclose specific per event limits but emphasized their ample reinsurance protection for potential large losses [39][40] Question: Update on homeowners insurance market dynamics - Management acknowledged the challenges in the homeowners market and discussed strategies to mitigate weather-related risks [44][46] Question: Operating leverage and fixed cost investments - Management stated that while fixed expenses may increase, they expect operating leverage to grow slower, allowing for continued profitability [52][54] Question: Criteria for MGA partner selection - Management highlighted the importance of risk evaluation and portfolio balance when selecting new MGA partners [58][60]