CTO Realty Growth, Inc. Q1 FY2026 earnings call

• Retail leasing: Executed 153,000 sq ft of leases, renewals, and extensions with 14% average cash rent increase. Positive leasing at Millennia Crossing with signings of Williams Sonoma and Pottery Barn Kids. Carolina Pavilion at 83% leased with active negotiations. • Out parcels: Signed leases with Swig and Cooper's Hawk, with LOIs for remaining four. Expected to generate low double-digit unlevered yield on $30M investments, deploying in 2027 with full benefit in 2028. • Investment activity: Acquired Palms Crossing in Texas. Madison Yards under contract to close in May. Received full repayment of $30M preferred investment in Waters Creek Village. Completed $75M preferred equity investment in Southwest property with 12% yield. • Balance sheet: Total debt $651.8M at 3/31/2026, weighted average interest rate 4.6%, $125M liquidity, leverage 6.4 times net debt to pro forma adjusted EBITDA. Utilized common ATM program to issue ~733,900 shares for $14.2M net proceeds.

Shopping centers: 97% of total same property NOI for the quarter. Same property NOI for shopping centers increased 6.8% compared to the comparable prior year period, excluding non-recurring items it grew 4.2%. Portfolio was 95.4% leased at quarter end, signed not open pipeline totaled 6.2 million of annual cash base rent representing ~5.5% of in-place annual cash-based rent. Acquired Palms Crossing, a 399,000 square foot open-air center in Texas for $81.6 million. Core FFO for Q1 was $16.9 million, AFFO was $18.2 million. Shopping center properties contributed significantly to NOI growth. Leasing activity included 153,000 square feet of leases, renewals, and extensions with 14% average cash rent increase. Six out parcel opportunities had progress with leases signed and LOIs in place.

• Full year 2026 core FFO outlook increased to $2.06 - $2.11 per diluted share. • Full year 2026 AFFO outlook increased to $2.19 - $2.24 per diluted share. • Key assumptions: Investment volume $175M - $250M, shopping centers same property NOI growth 3.5% - 4.5%, G&A expenses $19.7M - $20.2M.

Q: What attracted to the new $75 million Southwest Preferred Equity Investment and how about funding and draw schedule?

A: Attracted to the investment, used Waters Creek repayment and balance sheet for funding, lease commencement expected in ~9 months.

Q: Update on remaining 3 vacant anchor spaces?

A: Conversations going well, terms agreed, lease may take 3 months but work on engineering drawings starts immediately.

Q: What leads to high range of investment guidance?

A: Structured investment could push to high end, hope to be more active in next 4 months with recycling in next 3 months.

Q: Cap on structured investments?

A: Likely below 20%, more in line with 15%.

Q: Yield range change?

A: Acquisitions in 7.5% - 8% range, structured finance in 10% - 13% range.

Q: Leasing spreads this year?

A: Spreads should be close to historical range, expiring rents a bit higher but full year should be good.

Q: Timing of sign-not-open pipeline recognition?

A: ~$1.8M in pipeline, mostly Q3, Q4 weighted, full benefit in 2027 except one tenant in early 2028.

Q: Madison disposition cap rate?

A: A bit higher than 6% due to AMC theater.

Q: Hesitancy in leasing?

A: No hesitancy, no pullback in any category.

Q: Impact of M&A on disposition and acquisition outlook?

A: More capital out there, aggressive price point helpful on recycling but not on acquisition, nimbleness an advantage.

Q: Value add upside on AMS Crossing?

A: Below market rents, growth from vacancy and out parcel.

Q: Inclusion of Madison Yards disposition in guidance?

A: No disposition volume listed, only near term in plan is Madison Yards