Adjusted Funds From Operations (AFFO) manipulation
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SHAREHOLDER REMINDER: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of CTO Realty
Prnewswireยท 2025-10-03 13:55
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 [1][3]. Group 1: Allegations Against CTO - The complaint alleges that CTO and its executives violated federal securities laws by making false statements and failing to disclose that CTO's dividends were less sustainable than claimed [3]. - CTO is accused of using deceptive practices to inflate its Adjusted Funds From Operations (AFFO) and overstate the 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 instead on share dilution [4]. Group 2: 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 [5]. - 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 [4]. Group 3: Legal Proceedings - Investors who suffered losses in CTO are encouraged to contact Faruqi & Faruqi to discuss their legal rights and the October 7, 2025 deadline to seek the role of lead plaintiff in a federal securities class action [1][6]. - The lead plaintiff is defined as the investor with the largest financial interest in the relief sought, who will oversee the litigation on behalf of the class [6].