CTO Realty Growth, Inc. (CTO): Business Model Canvas [Dec-2025 Updated]

You're looking at how a specialized real estate investment trust, CTO Realty Growth, Inc., is navigating the market by doubling down on the Sunbelt, and honestly, their approach is working: they are actively repositioning assets to generate significant rent growth, hitting cash rent spreads of 21.6% in Q2 2025. This strategy supports a high leased occupancy rate of 94.6% as of Q3 2025, which helps back up that attractive dividend yield they are projecting around 8.8% annualized for Q4 2025. This Business Model Canvas lays out the nine essential parts-from their key partnerships with national anchors to the cost structure dominated by debt interest-showing you the precise mechanics behind their strategy to drive shareholder returns; see the full breakdown below.

CTO Realty Growth, Inc. (CTO) - Canvas Business Model: Key Partnerships

You're looking at the relationships CTO Realty Growth, Inc. relies on to execute its strategy, which is heavily focused on high-quality, retail-based properties in growth markets. These partnerships are critical for management, capital structure, and tenant mix.

External manager of Alpine Income Property Trust, Inc. (PINE)

CTO Realty Growth, Inc. has a deep, structural partnership with Alpine Income Property Trust, Inc. (PINE). CTO Realty Growth, Inc. externally manages PINE through its wholly owned subsidiary, Alpine Income Property Manager, LLC. This arrangement means executive officers often serve both entities. CTO Realty Growth, Inc. also retains a meaningful ownership stake in PINE itself.

Here are the key figures related to this managed entity as of the latest reports:

• PINE portfolio size: 128 net leased properties.
• Geographic spread: Properties located across 34 states.
• Lease structure: Properties are primarily subject to long-term, net leases.

National and regional anchor tenants

Securing strong, national-credit anchors is a core part of the value proposition for CTO Realty Growth, Inc.'s lifestyle centers. These tenants drive traffic and stabilize cash flow. For instance, the West Broad Village property is anchored by Whole Foods and REI. Also, at Plaza at Rockwall, the opening of Boot Barn and Barnes & Noble helped push occupancy to 99%.

We can map some of these key tenant relationships to the properties they occupy:

Lenders and financial institutions for term loan financing

Maintaining strong relationships with a syndicate of banks is essential for funding acquisitions and managing maturities. CTO Realty Growth, Inc. recently strengthened its balance sheet with significant new debt facilities. This is how they manage their capital structure, often using swaps to manage interest rate exposure.

The third quarter of 2025 saw major financing activity:

The syndicate supporting the new $125.0 million 2030 Term Loan was led by KeyBank National Association as Administrative Agent. Co-Syndication Agents included PNC Bank, National Association, Regions Bank, and Truist Bank. Raymond James Bank, Synovus Bank, and Wells Fargo Bank, National Association also participated.

Real estate brokers and developers for new acquisitions

While specific broker names for every deal aren't always public, the leasing activity shows the volume of transactions managed through these channels. The leasing momentum is defintely a key indicator of successful broker relationships driving occupancy and rent growth.

Here's a snapshot of leasing execution for the nine months ended September 30, 2025:

• Total leases signed: 64 leases.
• Total square feet signed: 481,738 square feet.
• Comparable rent growth: 21.7% increase.
• Average comparable cash base rent: $24.16 per square foot.
• Signed-not-open pipeline (as of October 28, 2025): $5.5 million in annual cash base rent.

Finance: draft 13-week cash view by Friday.

CTO Realty Growth, Inc. (CTO) - Canvas Business Model: Key Activities

You're looking at the core engine driving CTO Realty Growth, Inc.'s performance right now, focusing on the hard numbers that define their day-to-day work in late 2025.

Acquiring and repositioning retail and mixed-use properties is central. This activity is supported by recent investment figures; for instance, CTO Realty Growth reported $80 million in investment activity during Q1 2025. The portfolio focus remains on high-growth markets in the Southeast and Southwest United States, which is the Sunbelt region.

Active leasing and re-leasing is where the value creation really shows up. The execution has been strong, with 190,027 square feet of comparable leases signed in Q2 2025 at a positive cash rent spread of 21.6%. For the first nine months of 2025, the weighted average base rent spread reached 21.7% across 482K square feet of leasing activity. Management is targeting cash leasing spreads of 40% to 60% on the remaining vacant anchor spaces.

Managing the portfolio involves overseeing the current asset base. As of Q1/Q2 2025, CTO Realty Growth managed a portfolio comprising 24 properties totaling approximately 5.3 million square feet. The portfolio is heavily weighted toward multi-tenant retail, which represents 95% of Annualized Base Rent (ABR). Leased occupancy remained high, at 93.9% as of June 30, 2025.

The visible pipeline from leasing is a key part of the management activity, providing clear future income. The Signed-Not-Open (SNO) pipeline stood at $5.5 million in annual cash base rent as of Q3 2025, which is 5.3% of the in-place ABR.

Capital management involves balancing growth investments with balance sheet strength. For the full year 2025, CTO Realty Growth anticipates making new investments between $100 million to $200 million with target initial cash yields in the range of 8.00-8.50%. On the debt side, the company took action to simplify its structure, including closing $150.0 million in new term loan financings in Q3 2025 and repaying $65.0 million of a term loan due in March 2026. The net debt to adjusted EBITDA ratio was 6.9x at the end of Q2 2025.

Here's a quick look at the leasing execution metrics driving the portfolio value:

• Q2 2025 Comparable Cash Rent Spread: 21.6%
• Nine Months 2025 Comparable Rent Growth: 21.7%
• Q1 2025 Comparable Leasing Spread: 37%
• Anchor Box Repositioning Target Spread: 40% to 60%
• Total Leasing YTD Sept 30, 2025: 481,738 square feet

The capital allocation guidance for 2025 is summarized below:

CTO Realty Growth, Inc. (CTO) - Canvas Business Model: Key Resources

You're looking at the core assets that power CTO Realty Growth, Inc.'s operations right now, late in 2025. These aren't abstract concepts; they are hard, income-generating real estate and contractual commitments that drive the business.

The foundation of CTO Realty Growth, Inc.'s value is its physical holdings. This REIT has successfully concentrated its portfolio in areas seeing significant demographic and economic tailwinds. Honestly, this focus on high-growth regions is a deliberate strategy to capture superior rent growth over the long haul.

Here are the specific, tangible resources CTO Realty Growth, Inc. relies on:

• Portfolio of 5.2 million square feet of income-producing properties, spread across 24 assets as of Q1 2025.
• High-growth Sunbelt market concentration, primarily in the Southeast and Southwest regions of the United States.
• Experienced, internally managed real estate team, led by President and Chief Executive Officer John P. Albright.
• Signed-not-open (SNO) lease pipeline of $5.5 million in annualized base rent, as reported on October 28, 2025.

To give you a clearer picture of the current operational strength underpinning these resources, look at the leasing activity and portfolio metrics from the third quarter of 2025. This shows you the immediate value being captured.

That SNO pipeline is important; it represents future cash flow that is contractually secured but not yet recognized in current operating results. Specifically, as of late October 2025, that $5.5 million in base rent is equivalent to 5.3% of the annual cash base rent already in place at the end of the quarter. It's a clear line of sight to 2026 NOI growth.

Also, remember that CTO Realty Growth, Inc. externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE), which is another asset class contributing to the overall resource base, though the primary focus remains on its directly owned retail portfolio.

CTO Realty Growth, Inc. (CTO) - Canvas Business Model: Value Propositions

You're looking at the core value CTO Realty Growth, Inc. delivers to its investors and tenants right now, grounded in the latest operational metrics. It's about location quality, income stability, and direct upside potential.

• Exposure to high-growth markets with an average annual household income of $141K (based on 2024 figures in CTO's markets).
• Stable income stream supported by a high leased occupancy rate of 94.2% as of Q3 2025.
• Significant mark-to-market rent upside on re-leasing vacant anchor spaces, evidenced by a year-to-date comparable lease rent spread of 21.7% for the nine months ended September 30, 2025.
• Attractive income return via the declared fourth quarter 2025 common stock cash dividend of $0.38 per share, which annualized to approximately 8.8% based on the November 17, 2025 closing price.

The leasing momentum is a key driver here. You see the impact of active management in the rent spreads achieved on renewed and new leases.

Management is actively working to capture the mark-to-market opportunity. They are in lease negotiations for the remaining four vacant anchor spaces, which, along with the SNO pipeline, is expected to boost net operating income (NOI) into 2026 and beyond. This focus on repositioning existing assets, alongside a portfolio concentrated in high-growth areas, forms the core of the value proposition for shareholders seeking both growth and income.

The portfolio's location quality is quantified by the demographics CTO targets. The average household income figure of $141K in their operating markets significantly outpaces the US average of $113K, per 2024 data. Also, 95% of the annualized base rent comes from cities ranked in the Urban Land Institute's top 30 markets for overall real estate prospects. That's a clear focus on quality geography.

You should note the leasing activity details for the quarter ended September 30, 2025:

• 143,000 square feet leased in Q3 2025.
• 24 leases signed in the quarter.
• Comparable leases for the quarter showed a 10.3% cash base rent spread.

Finance: draft 13-week cash view by Friday.

CTO Realty Growth, Inc. (CTO) - Canvas Business Model: Customer Relationships

You're looking at how CTO Realty Growth, Inc. manages its relationships with the people who pay the rent and the people who own the stock. It's all about long-term stability from tenants and clear communication with shareholders.

Long-term, triple-net lease structures with tenants

CTO Realty Growth, Inc. builds its revenue foundation on long-term commitments, which is typical for a REIT focused on predictable income. The structure of these leases, primarily triple-net, means tenants handle most property operating expenses, which helps keep CTO's operational involvement low.

Looking at the weighted average remaining lease terms as of late 2025 shows a mix of stability across property types:

The leasing activity in the third quarter of 2025 further illustrates the focus on duration. For new leases executed in Q3 2025, the weighted average lease term was quite long at 9.4 years. Renewals and extensions, while shorter, still locked in tenants for an average of 5.6 years. This resulted in an overall weighted average lease term for all Q3 2025 leasing of 7.2 years.

Here's a quick look at the leasing term data from the nine months ended September 30, 2025:

Active asset management to enhance property value and tenant experience

Active asset management is how CTO Realty Growth, Inc. drives value within its existing properties, often by re-tenanting spaces at higher rates. The portfolio occupancy as of Q3 2025 was strong at 94.2% leased.

The focus on capturing embedded mark-to-market opportunities is evident in the leasing spreads achieved. For comparable leases year-to-date through September 30, 2025, CTO signed 424,344 square feet at an average cash base rent of $24.16 per square foot, which was a 21.7% increase over the previous average of $19.85 per square foot. For the third quarter alone, comparable leases showed a 10.3% base rent spread.

A major focus has been on resolving large vacancies. As of October 28, 2025, 6 of the 10 formerly vacant anchor spaces have been leased. This effort is already showing results, such as the leasing update at The Shops at Legacy, where new deals brought the leased occupancy at that center to approximately 85%.

The pipeline of future revenue provides visibility into ongoing asset enhancement:

• Current signed-not-open (SNO) pipeline as of October 28, 2025, represents $5.5 million of annual cash base rent.
• Approximately 76% of that SNO pipeline rent is anticipated to be recognized in 2026.
• The company is targeting a positive cash leasing spread of 40% to 60% across those 10 anchor spaces.

Direct relationship management with large, creditworthy tenants

Managing relationships with major tenants involves securing long-term commitments and filling large spaces strategically. The leasing activity in the first quarter of 2025 showed new leases signed at an impressive 82% cash spread over previous rents, indicating success in attracting tenants willing to pay higher rates.

The company is actively backfilling major spaces. For instance, a 30,000 square foot, 10-year lease was signed with a co-working operator for the Shops at Legacy, slated to open in 2026. This, combined with other large and small shop leases executed over the last two years (nearly 60,000 square feet of smaller shop leases), shows a direct effort to curate tenant mix for vibrancy and stability.

The tenant mix as of Q1 2025 shows diversification across retail categories:

• Casual dining: 13% of Annual Base Rent (ABR).
• Off-price retail: 8% of ABR.
• Entertainment: 8% of ABR.

Investor relations for defintely transparent communication with shareholders

CTO Realty Growth, Inc. maintains a relationship with its shareholders through regular disclosures and dividend actions. As of late 2025, the company had 32,651,101 shares outstanding.

The ownership structure reflects significant institutional interest, with institutional shareholders owning approximately 64.42% of the company, while insiders hold about 34.09% as of November 2025.

The company communicates its financial outlook and performance directly:

• The Board authorized a Q4 2025 quarterly cash dividend of $0.38 per share, announced on November 18, 2025.
• Full-year 2025 guidance for Core FFO per diluted share was reaffirmed between $1.80 and $1.86.
• The company had $170.3 million of liquidity as of September 30, 2025.

You can find the latest Form 10-Q and Investor Presentation materials on the Investor Relations section of the company's website, www.ctoreit.com, following the Q3 2025 earnings release on October 28, 2025.

Finance: draft 13-week cash view by Friday.

CTO Realty Growth, Inc. (CTO) - Canvas Business Model: Channels

You're looking at how CTO Realty Growth, Inc. connects with its customers and capital providers as of late 2025. It's a mix of direct management and public market access, which is pretty standard for a REIT focused on physical assets.

Direct in-house leasing team for portfolio management.

The in-house team is clearly driving significant rent growth across the portfolio, which stood at 5.2 million square feet across 24 properties as of the first quarter of 2025. They are signing leases that bring in substantially more cash than the previous ones. Here's a look at that leasing execution through the third quarter of 2025:

The leased occupancy rate held strong, sitting at 93.8% in Q1 2025 and 93.9% in Q2 2025. Plus, the signed-not-open (SNO) pipeline as of the end of Q3 2025 represented $5.5 million, or 5.3% of annual cash base rents in place, giving us a clear line of sight on future income recognition.

Investor relations and stock exchange (NYSE: CTO) for capital access.

CTO Realty Growth, Inc. uses the NYSE: CTO ticker to access public equity capital. The company maintains an active dialogue with the investment community, evidenced by the declaration of dividends for the Fourth Quarter 2025 on November 18, 2025. You can track the company's financial health and capital structure through these key figures:

• Equity Market Capitalization: $615 million (as of Q1 2025).
• Market Capitalization: $522M (as of October 21, 2025).
• Net Debt to Total Enterprise Value: 47% (as of June 30, 2025).
• Liquidity Position: $170.3 million (as of September 30, 2025).
• Series A Preferred Equity (Par Value): $118 million (as of Q1 2025).

They also actively manage their share base, having repurchased $4.3 million of common stock under a previous program and authorizing a new $10 million repurchase program.

Third-party brokers for property acquisitions and dispositions.

While the leasing is in-house, property sourcing channels involve external partners, which is typical when executing significant capital deployment. The company reported acquiring one property for $79.8 million in Q1 2025. For the full year 2025, CTO anticipated making investments between $100 million and $200 million, often targeting initial cash yields of 8.00-8.50%. Brokerage services are the likely channel used to source and execute these multi-million dollar acquisitions and any subsequent dispositions.

Property websites and on-site management offices for tenant interaction.

Tenant interaction flows through the physical on-site management offices at their retail centers, such as the one anchored by Whole Foods and REI, which is 315,600 square feet of retail space. For investor and broader stakeholder communication, the primary digital channel is the corporate website, www.ctoreit.com, where they post key documents like the Investor Presentation and Supplemental Disclosure.

CTO Realty Growth, Inc. (CTO) - Canvas Business Model: Customer Segments

You're looking at who actually pays the bills for CTO Realty Growth, Inc. as of late 2025. It's not just one type of business; it's a mix that CTO Realty Growth, Inc. relies on for its Annualized Base Rent (ABR).

The core of the revenue base comes from retail operations. This segment includes major national and regional retail anchors that you see every day. For instance, tenants like AMC, Dick's Sporting Goods are part of this group, driving a significant portion of the cash flow.

Then you have the mixed-use component, which is designed to create lifestyle destinations. This group includes operators focused on experiences and services. We see categories like restaurants, fitness centers, and even co-working operators signing leases, such as the recent 10-year lease with a co-working operator at The Shops at Legacy, which is a 30,000 square foot commitment.

Here's the quick math on how the portfolio's ABR breaks down based on the Q3 2025 figures. This shows you where the money is coming from right now:

The institutional and individual investors form a distinct segment, though they don't occupy space. Their interest is tied directly to the performance and the resulting distributions. CTO Realty Growth, Inc. has been actively managing its dividend, which stood at an attractive level, with a reported yield of around 8.8% in Q2 2025, and the company declared dividends for the Fourth Quarter 2025 in November 2025.

Office tenants are a small, but present, part of the customer base. As of Q3 2025, this segment represents only about 3.6% of the total ABR. Another report from mid-2025 pegged this figure at about 4% of annualized base rent, confirming its minor role in the overall revenue structure.

To be fair, the focus on retail and mixed-use is intentional, given the portfolio's location in Sun Belt states. The leasing activity reflects this focus, with year-to-date comparable leases showing a strong average cash base rent of $24.16 per square foot for the nine months ended September 30, 2025.

The key customer types CTO Realty Growth, Inc. serves are:

• National and regional retail operators.
• Mixed-use operators like fitness and dining.
• Investors seeking REIT dividends.
• Office users, a small base.

Finance: draft 13-week cash view by Friday.

CTO Realty Growth, Inc. (CTO) - Canvas Business Model: Cost Structure

You're looking at the core costs CTO Realty Growth, Inc. has to cover to keep the properties running and the business afloat as of late 2025. These are the necessary drains on cash flow before you even get to shareholder returns.

Significant interest expense on debt remains a major cost. Even though the company actively managed its balance sheet, debt service is a fixed commitment. CTO Realty Growth, Inc. ended the third quarter of 2025 with a net debt to EBITDA ratio of 6.7x, which is an improvement from 6.9x at the end of the second quarter. To give you a concrete look at the interest burden, for the three months ended March 31, 2025, the Interest Expense, net of amortization of loan costs and discount on convertible debt, was reported at $5,770 thousand. This cost is being managed by locking in rates; for instance, new term loans closed near quarter-end had an initial fixed interest rate of approximately 4.2%.

The day-to-day running of the properties drives the property operating expenses. These cover the basics like keeping the lights on and the buildings maintained. For the quarter ending September 30, 2025, CTO Realty Growth, Inc. reported total Operating Expenses of $27.73 million. This cost base supports the portfolio, which generated a Same-Property Net Operating Income (NOI) of $18.6 million for the third quarter of 2025. Here's a quick look at the scale of the portfolio costs relative to revenue generation:

Next up are the General and administrative (G&A) expenses, which cover the internal management team and overhead. For the full year of 2025, management provided guidance that G&A expenses would fall within a range of $17.5 million to $18.0 million. That's the cost of running the corporate office, separate from the direct property costs.

Finally, you have Capital expenditure (CapEx), which is money spent to improve assets or secure future income, like re-tenanting. While specific CapEx for re-tenanting isn't itemized separately, the company's investment activity shows where major capital is being deployed. For full-year 2025, the outlook included investments, including structured investments, between $100.0 million and $200.0 million, expected at initial yields between 8.0% and 8.5%. To fund this and manage maturities, CTO Realty Growth, Inc. closed on $150.0 million in new term loan financings and used a portion of that to repay a $65.0 million term loan due in March 2026.

The company also spent capital on stock buybacks, repurchasing 571,473 shares for $9.3 million through October 28, 2025, at a weighted average price of $16.27 per share.

CTO Realty Growth, Inc. (CTO) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers that drive CTO Realty Growth, Inc.'s top line as of late 2025. This isn't about strategy; it's about the dollars coming in the door right now.

The primary engine remains property operations, but the fee-based income streams are definitely contributing to the overall picture. Here's the quick math on the key revenue components from the third quarter of 2025.

The leasing momentum seen in the third quarter is expected to translate into the full-year results. CTO Realty Growth, Inc. has updated its full-year guidance based on this performance.

• Full-year 2025 Core FFO per share projected between $1.84 and $1.87.

That full-year Core FFO guidance was raised from a previous range of $1.80 to $1.86 per share. Also, the current signed-not-open pipeline represents $5.5 million, or 5.3% of annual cash base rent in place at quarter end, which is a tailwind for future rental income recognition. Finance: draft 13-week cash view by Friday.