CTO Realty Growth, Inc. Q4 FY2025 earnings call

• Fourth quarter was robust with record high leased occupancy of 95.9%, 4.3% same-property NOI growth for shopping centers, and acquisition of a South Florida shopping center. • Retail leasing results: Fourth quarter signed 189,000 sq ft including 167,000 sq ft comparable leases and 31% cash rent increase; full year signed 671,000 sq ft including 592,000 sq ft comparable leases at 24% cash rent increase. Backfilling 10 anchor spaces: signed lease for 48,000 sq ft at Market Place at Seminole Town Center, with 7 resolved anchor spaces in 2025 totaling 177,000 sq ft, and active negotiations for 3 anchor spaces at Carolina Pavilion. • Investment activity: Acquired Pompano Citi Center for $65.2 million in December; closed $166 million of investments in 2025 including Ashley Park acquisition and structured investments. • Dispositions: Sold The Shops at Legacy North for $78 million. Near-term anticipated acquisition: Under contract to acquire a 384,000 sq ft shopping center in Texas for ~$83 million. Identified 6 outparcels for development with average $5 million investment capital and low double-digit yield, leases to contribute to earnings in second half of 2027.

For the fourth quarter, core FFO was $15.8 million, a $1.6 million increase compared to the comparable quarter of the prior year. On a per share basis, core FFO was $0.49 per diluted share. For the full year, core FFO was $60.5 million, a $12.6 million increase. Same-property NOI for shopping centers increased 4.3% in the fourth quarter. Shopping center properties represent 93% of total same-property NOI for the fourth quarter. Same-property NOI, including noncore properties, increased 1.1% in the fourth quarter. Noncore properties were impacted by a tenant vacating and lower percentage rent. Shopping centers' growth was driven by leasing activity and reduced maintenance costs. Signed-not-open pipeline stands at $6.1 million, representing ~5.8% of annual cash base rents, with almost half anticipated to be recognized in 2026 and 100% in 2027.

• Initial 2026 core FFO per diluted share guidance is $1.98 to $2.03, AFFO per diluted share is $2.11 to $2.16. • Key assumptions: Investment volume of $100 million to $200 million at weighted average initial yield 8% - 8.5%; shopping center same-property NOI growth 3.5% - 4.5%; general and administrative expenses $19.5 million to $20 million. • Cadence of same-property NOI growth will improve as signed-not-open pipeline tenants take possession and commence paying rent.

Q: About backfilling 10 vacant anchor centers, timing of rent from signed leases starting in 2026 and timing of remaining leases.

A: For still working on ones, like Carolina Pavilion, expect resolved in next 6 months; completed ones, about half in '26 and all online in '27.

Q: On New Mexico office property, value and disposal opportunity.

A: In early discussions with buyers, being patient as state of New Mexico rent commencement will increase value, proceeds to be reinvested in open air center.

Q: Color on Pompano Citi Center mark-to-market lease-up opportunity.

A: JCPenney is large tenant paying nothing, lots of vacancy, active with LOIs going out.

Q: Flavor of market for leasing, categories in demand.

A: Strong national brands like T.J. Maxx, Ross, etc., looking for store expansion.

Q: Revana loan repayment and usage.

A: Expect Repayment, $25 million remaining to be used for site work.

Q: SNO timing change, reason.

A: Tenant moved off, legacy sold, but signed-not-open pipeline still large.

Q: Texas acquisition property comparison to portfolio, value-add.

A: Stabilized asset with upside, land parcel, lease-up, below-market leases.

Q: Acquisitions pipeline, structured investments vs shopping center purchases.

A: Looking for larger shopping center purchases, market has few on market.

Q: Disposition vs acquisition yield spread.

A: At least 100 basis points, likely more.

Q: CapEx run rate.

A: Fourth quarter elevated, run rate better to look at annual basis as one lease can skew it up.

Q: SNO timing 47% in 2026 vs last quarter, reason.

A: Tenant moved off and legacy sold, but signed-not-open pipeline still large.

Q: Market allocation for new properties, Atlanta.

A: Not looking to add to Atlanta, portfolio in strong growth markets.

Q: Relative merits of grocery, anchor, lifestyle and power centers, target.

A: Grocer lower yield, lifestyle more expensive to operate, power more stable with higher growth; not chasing grocers, looking at lifestyle and power.

Q: 2028 lease off, discussions on FFO growth.

A: Most tenants likely to exercise renewal options, or mark-to-market opportunities, portfolio setup good for growth