Key Highlights

  • CTO Realty Growth reported third quarter total revenue of USD 46.9 million, up from USD 37.8 million a year earlier.
  • The company posted a net loss attributable to common stockholders of USD 7.1 million, compared with net income in the prior year quarter.
  • Funds from operations attributable to common stockholders were USD 20.5 million for the quarter.
  • Adjusted funds from operations reached USD 20.9 million, while core funds from operations were USD 19.8 million.

Revenue Growth Alongside a GAAP Net Loss

CTO Realty Growth (NYSE:CTO) reported third quarter total revenues of USD 46.9 million, up from USD 37.8 million in the same period of 2025. The company posted a net loss attributable to the company of USD 5.2 million for the quarter, compared with net income of USD 2.9 million a year earlier, with the net loss attributable to common stockholders at USD 7.1 million after preferred stock distributions.

The shift to a net loss on a GAAP basis contrasts with the revenue growth reported for the quarter, a pattern common among real estate investment trusts where depreciation and amortization charges weigh on net income even as cash flow metrics remain positive.

Non-GAAP Measures Show a Different Picture

Funds from operations attributable to common stockholders were USD 20.5 million for the quarter, while core funds from operations, which the company uses to exclude certain non-recurring items, were USD 19.8 million. Adjusted funds from operations, a further non-GAAP measure that adjusts for additional non-cash revenues and expenses, reached USD 20.9 million.

These non-GAAP measures, which exclude real estate related depreciation and amortization along with other one time items, are the metrics the company and many real estate investment trust investors use to assess underlying operating performance, distinct from the GAAP net loss reported for the period.

Portfolio Trends and Risk Factors

The gap between GAAP net income and the company's FFO based measures reflects the capital intensive nature of commercial real estate ownership, where depreciation charges can outweigh operating cash flow in a reporting period. Preferred stock distributions of USD 1.9 million further reduced the net loss attributable to common stockholders relative to the company level net loss.

Continued growth in total revenue, up roughly 24% year over year this quarter, could support further FFO growth, while any deterioration in portfolio occupancy or tenant performance could pressure both GAAP and non-GAAP earnings metrics in coming quarters.

FFO Metrics to Track Ahead

The trajectory of funds from operations and adjusted funds from operations relative to this quarter's USD 20.5 million and USD 20.9 million figures, respectively, and continued total revenue growth are among the data points that may shape how the fourth quarter is assessed. The gap between GAAP net income and FFO based measures remains a reference point for understanding the company's reported results.