A real estate investment trust that owns and manages shopping centers and mixed-use properties across the United States, along with a portfolio of commercial loans. It began life in 1902 as Consolidated-Tomoka Land Co., a Florida timberland company founded by a Chicago financier who bought nearly two million acres of pine forest, and it went public in 1969. The company renamed itself CTO Realty Growth in 2020 to reflect its shift from selling land to owning income-producing retail properties.
CTO Realty Growth swings to a $15.1M Q2 profit as the prior year's $20.4M debt extinguishment charge does not repeat.
The story flipped from a loss to a profit. rose 16.5% to $43.8 million and reached $15.1 million, compared with a $23.4 million loss a year ago that included a $20.4 million charge for settling convertible notes. The core rental business is growing, but variable-rate debt exposure has nearly doubled to $143.0 million.
Key takeaways
attributable to the company was $15.1 million, compared with a $23.4 million loss in Q2 2025, when the company recorded a $20.4 million from settling its 3.875% Convertible Senior Notes.
Total rose 16.5% to $43.8 million, driven by an 11.3% increase in income property revenue to $37.1 million and a 73.4% increase in commercial loans and investments revenue to $5.2 million.
attributable to common stockholders reached $19.1 million, up from negative $5.5 million a year ago, while adjusted funds from operations rose to $19.1 million from $15.3 million.
Section summaries
Management's Discussion and Analysis
CTO Realty Growth reports Q2 2026 net income of $15.1M vs a $23.4M loss a year earlier, driven by higher revenue and no debt extinguishment loss.
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Total rose 16.5% to $43.8 million in Q2 2026, led by a 73.4% increase in commercial loans and investments revenue to $5.2 million and an 11.3% increase in income properties revenue to $37.1 million.
attributable to the Company was $15.1 million in Q2 2026 versus a $23.4 million loss in Q2 2025; the prior-year loss included a $20.4 million loss on extinguishment of debt from settling the 2025 Notes.
The company sold two shopping centers for $90.7 million during the first half of 2026, recording $2.1 million in gains, and took a $1.1 million charge in the quarter.
The unhedged variable-rate portion of the rose to $143.0 million from $74.0 million a year ago, increasing the sensitivity to a 100-basis-point rate rise to $1.4 million.
rose 7.9% to $649.5 million, while liquidity included $107.0 million undrawn on the $300.0 million and $117.2 million remaining under the at-the-market equity program.
What changed
The PINE investment, flagged repeatedly for its non-cash impact on , swung from a $4.7 million unrealized loss in Q2 2025 to a $3.2 million unrealized gain in Q1 2026; the Q2 2026 filing does not report a separate PINE fair-value change, suggesting the gain may have held or the impact was immaterial this quarter.
The unhedged variable-rate balance, a persistent watch item, rose to $143.0 million from $74.0 million a year ago and from $134.0 million last quarter, continuing a multi-quarter trend away from hedging.
The $51.0 million convertible notes that matured in April 2025 and drove the $20.4 million Q2 2025 loss on extinguishment are now fully resolved, removing that source of volatility from the income statement.
The company raised its 2026 investment for income-producing properties and structured investments to $300.0 million to $400.0 million, up from the $175 million to $250 million range disclosed in Q1 2026, signaling an acceleration in acquisition activity ahead.
What to watch
Whether the $143.0 million unhedged variable-rate balance is reduced or swapped, given the $1.4 million sensitivity per 100 and the steady increase in unhedged exposure over the past year.
The pace of acquisitions against the raised $300 million to $400 million 2026 investment and the effect on , which reached $649.5 million, and on the $107.0 million undrawn on the .
The fair value of the PINE investment and whether the $3.2 million gain recorded in Q1 2026 holds or reverses, given the investment's history of quarter-to-quarter swings.
The trajectory of and AFFO per share as the 2025 and early 2026 acquisitions season and the share count continues to rise from ATM program usage.
The Company sold two shopping centers for $90.7 million during the first half of 2026, generating gains of $2.1 million, and recorded a $1.1 million charge in Q2 2026.
Liquidity at June 30, 2026 included $8.1 million of cash, $35.4 million of , $107.0 million undrawn on the $300.0 million , and $117.2 million remaining under the 2024 ATM Program.
attributable to common stockholders was $19.1 million in Q2 2026 versus negative $5.5 million in Q2 2025; attributable to common stockholders was $19.1 million versus $15.3 million.
2026 investment for income-producing properties and structured investments is $300.0 million to $400.0 million.
Quantitative and Qualitative Disclosures About Market Risk
Principal market risk is interest rate risk on variable-rate Revolving Credit Facility debt; $143.0M unfixed as of June 30, 2026.
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The company's principal market risk is interest rate risk on its debt, primarily the variable-rate .
Borrowings on the $300.0 million bear interest from plus 0.10% plus 125 to SOFR plus 0.10% plus 220 basis points based on borrowing as a percentage of total asset value.
As of June 30, 2026, the outstanding balance was $193.0 million, of which $143.0 million was not fixed by an agreement, compared with $224.0 million outstanding and $74.0 million unfixed as of June 30, 2025.
A hypothetical 100 change in interest rates would affect financial position, results of operations, and cash flows by $1.4 million and $0.7 million as of June 30, 2026 and 2025, respectively.
The company entered into agreements to hedge against changes in future cash flows from fluctuating interest rates on certain debt borrowings.
Management's objective is to limit the impact of interest rate changes on earnings and cash flows and to manage overall borrowing costs, with exposure minimal except for the impact on and loss.
From time to time, the Company may be a party to certain legal proceedings, incidental to the normal course of its business. While the outcome of legal proceedings cannot be predicted with certainty, the Company is not currently a party to any pending or threatened legal proceed…
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From time to time, the Company may be a party to certain legal proceedings, incidental to the normal course of its business. While the outcome of legal proceedings cannot be predicted with certainty, the Company is not currently a party to any pending or threatened legal proceedings that we believe could have a material adverse effect on the Company’s business or financial condition.
For a discussion of the Company’s potential risks and uncertainties, see the information set forth under the heading Part I, “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (the “Form 10-K”). The risks described in the For…
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For a discussion of the Company’s potential risks and uncertainties, see the information set forth under the heading Part I, “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (the “Form 10-K”). The risks described in the Form 10-K are not the only risks facing the Company. Additional risks and uncertainties not currently known to the Company or that the Company currently deems to be immaterial also may materially adversely affect the Company. As of June 30, 2026, there have been no material changes in our risk factors from those set forth within the Form 10-K.