CTO Realty Growth Announces the Sale of its Main Street Properties in Daytona Beach, FL for $7.1 Million

Rhea-AI Summary

CTO Realty Growth (NYSE:CTO) has announced the sale of its Main Street properties in Daytona Beach, Florida for $7.1 million, resulting in a gain of approximately $1.1 million. As part of the transaction, CTO provided seller financing of $5.0 million for 5 years at an annual rate of 6.50%.

The company plans to reinvest the proceeds into larger format shopping centers in high-growth markets across the Southeast and Southwest United States. This strategic move aligns with CTO's focus on simplifying its portfolio and divesting from smaller, noncore investments.

Positive

• Generated a gain of $1.1 million from the property sale
• Secured 6.50% annual interest revenue through $5.0 million seller financing
• Strategic portfolio optimization by divesting from smaller, noncore assets

Negative

• Reduced property portfolio size through divestment
• Potential risks associated with providing seller financing

Insights

Real Estate Investment Analyst

CTO's $7.1M property sale with $1.1M gain signals strategic portfolio refinement toward larger shopping centers in high-growth Southeast/Southwest markets.

CTO Realty Growth has completed the sale of its Main Street properties in Daytona Beach for $7.1 million, generating a gain of $1.1 million on the transaction. The deal includes seller financing of $5.0 million at 6.50% for 5 years, allowing CTO to maintain some income stream while deploying capital elsewhere.

This transaction aligns with CTO's articulated strategy of simplifying its portfolio and divesting smaller, non-core assets. The 18.3% profit margin on this sale ($1.1M gain on $7.1M total) demonstrates effective asset management and value creation from their existing property holdings.

The seller financing component is particularly noteworthy in the current high interest rate environment. By offering 6.50% financing, CTO facilitates the transaction while securing a reliable income stream that exceeds typical treasury yields. This structure provides immediate partial liquidity while maintaining exposure to a familiar asset.

Management's stated intention to redeploy proceeds into larger format shopping centers in high-growth Southeastern and Southwestern markets reflects a strategic pivot toward retail properties with potentially stronger demographic tailwinds and economies of scale. This geographic focus aligns with migration patterns toward Sun Belt states that have experienced population and economic growth exceeding national averages.

As a REIT that also manages Alpine Income Property Trust (PINE), this transaction reinforces CTO's focus on optimizing its portfolio composition while maintaining its qualification as a REIT.

WINTER PARK, Fla., Aug. 20, 2025 (GLOBE NEWSWIRE) -- CTO Realty Growth, Inc. (NYSE: CTO) (the “Company” or “CTO”) announced today that it has sold its Main Street properties in Daytona Beach, Florida for $7.1 million, generating a gain on sale of approximately $1.1 million. As part of the transaction, the Company provided seller financing of $5.0 million for 5 years at an annual rate of 6.50%.

“We continue to simplify our portfolio and harvest value from smaller and noncore investments,” stated John P. Albright, President and Chief Executive Officer of CTO Realty Growth. “We intend to recycle the proceeds from the sale of the Main Street properties into larger format shopping centers in high growth target markets in the Southeast and Southwest.” 

About CTO Realty Growth, Inc.

CTO Realty Growth, Inc. owns and operates high-quality, open-air shopping centers located in the higher growth Southeast and Southwest markets of the United States. CTO also externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE).

We encourage you to review our most recent investor presentation and supplemental financial information, which is available on our website at www.ctoreit.com.

Safe Harbor 

Certain statements contained in this press release (other than statements of historical fact) are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can typically be identified by words such as “believe,” “estimate,” “expect,” “intend,” “anticipate,” “will,” “could,” “may,” “should,” “plan,” “potential,” “predict,” “forecast,” “project,” and similar expressions, as well as variations or negatives of these words. Statements, among others, relating to the Company’s intention to recycle the proceeds from the sale of the Main Street properties into larger format shopping centers in high growth target markets in the Southeast and Southwest are forward-looking statements.

Although forward-looking statements are made based upon management’s present expectations and beliefs concerning future developments and their potential effect upon the Company, a number of factors could cause the Company’s actual results to differ materially from those set forth in the forward-looking statements. Such factors may include, but are not limited to: the Company’s ability to remain qualified as a REIT; the Company’s exposure to U.S. federal and state income tax law changes, including changes to the REIT requirements; general adverse economic and real estate conditions; macroeconomic and geopolitical factors, including but not limited to inflationary pressures, interest rate volatility, distress in the banking sector, global supply chain disruptions, and ongoing geopolitical war; credit risk associated with the Company investing in structured investments; the impact of epidemics or pandemics on the Company’s business and the businesses of its tenants or borrowers and the impact of such epidemics or pandemics on the U.S. economy and market conditions generally; the inability of major tenants or borrowers to continue paying their rent or obligations due to bankruptcy, insolvency or a general downturn in their businesses; the loss or failure, or decline in the business or assets of PINE; the completion of 1031 exchange transactions; the availability of investment properties that meet the Company’s investment goals and criteria; the uncertainties associated with obtaining required governmental permits and satisfying other closing conditions for planned acquisitions and sales; and the uncertainties and risk factors discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and other risks and uncertainties discussed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission.

There can be no assurance that future developments will be in accordance with management’s expectations or that the effect of future developments on the Company will be those anticipated by management. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to update the information contained in this press release to reflect subsequently occurring events or circumstances.

Contact:
Investor Relations
ir@ctoreit.com

FAQ

How much did CTO Realty Growth sell its Daytona Beach Main Street properties for?

CTO Realty Growth sold its Main Street properties in Daytona Beach, Florida for $7.1 million, generating a gain of approximately $1.1 million.

What are the terms of the seller financing provided by CTO Realty Growth for the Main Street properties sale?

CTO provided seller financing of $5.0 million for 5 years at an annual rate of 6.50%.

What is CTO Realty Growth's plan for the proceeds from the Daytona Beach property sale?

CTO plans to reinvest the proceeds into larger format shopping centers in high-growth target markets across the Southeast and Southwest United States.

What is CTO Realty Growth's current business strategy regarding its property portfolio?

CTO is focusing on simplifying its portfolio by divesting from smaller and noncore investments, while targeting larger format shopping centers in high-growth markets.