CTO Realty Growth Announces the Sale of the Shops at Legacy North for $78.0 Million

Rhea-AI Summary

CTO Realty Growth (NYSE: CTO) announced the sale of the Shops at Legacy North, a 243,000-square-foot mixed-use lifestyle center in Dallas, for $78.0 million (≈$321 per sq ft) on Dec 19, 2025.

The company said the disposition realized an approximate low-5% exit cash cap rate and that net proceeds will be used in a Section 1031 like-kind exchange, retroactively funding CTO’s Pompano Citi Centre acquisition on Dec 17, 2025, with remaining proceeds for future acquisitions.

Year-to-date disposition volume is $85.1 million, representing a weighted average exit cash cap rate of mid-5%. The company noted the sale reflects leasing progress at the property and supports capital recycling into higher-yielding opportunities.

Positive

• Sale price of $78.0 million
• Price equals $321 per square foot
• Disposition at approximate low-5% exit cash cap rate
• Proceeds used to fund Pompano Citi Centre acquisition (Dec 17, 2025)
• YTD disposition volume of $85.1 million

Negative

• Portfolio reduced by 243,000 square feet
• YTD dispositions of $85.1 million may limit near-term recycling scale

Key Figures

Sale price $78.0 million Shops at Legacy North disposition

Property size 243,000 square feet Shops at Legacy North mixed-use center

Price per sq ft $321 per square foot Shops at Legacy North sale metric

YTD disposition volume $85.1 million Includes Shops at Legacy North and Main Street properties

Q3 2025 revenue $37.8 million Quarter ended September 30, 2025

Prior-year Q3 revenue $31.8 million Quarter ended September 30, 2024

Q3 2025 net income $1.0 million Net income attributable to common stockholders, Q3 2025

9M 2025 net loss $23.9 million Net loss to common for nine months ended Sept 30, 2025

Market Reality Check

$18.35 Last Close

Volume Volume 575,966 is 2.02x the 20-day average of 285,435, indicating elevated interest ahead of/around this announcement. high

Technical Price $18.07 is trading above the 200-day MA of $17.47 and sits 13.46% below the 52-week high and 19.95% above the 52-week low.

Peers on Argus

CTO gained 2.55% while key REIT peers were mostly down on the day (e.g., OLP -2.76%, GOOD -1.83%, AHH -1.46%, GNL -1.18%), with only SAFE modestly positive at 0.88%. This points to a stock-specific reaction to the asset sale rather than a broad sector move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 09	Leasing / openings	Positive	-0.2%	New fitness and dining tenants opened at Beaver Creek Crossings, boosting occupancy.
Dec 08	Leasing update	Positive	-0.3%	Albuquerque office reached 100% leased to two investment‑grade tenants with long terms.
Nov 18	Dividend declaration	Positive	-1.4%	Declared Q4 2025 common dividend of <b>$0.38</b> per share with ≈<b>8.8%</b> yield.
Nov 14	Leasing update	Positive	+0.2%	Leasing progress at Shops at Legacy raised leased occupancy to about <b>85%</b>.
Nov 06	Tenant opening	Positive	+1.7%	Grand opening of The Picklr and new space at The Collection at Forsyth lifted occupancy.

Pattern Detected

Recent operational and dividend updates were generally positive but often met with flat-to-negative near-term price reactions, suggesting the market has been cautious on good news. Today’s stronger positive move on a sizable asset sale diverges from that mixed reaction pattern and may reflect the transaction’s clearer capital recycling and earnings accretion message.

Recent Company History

Over the past few months, CTO has focused on leasing and portfolio optimization. In November 2025, it highlighted new leases and rising occupancy at several properties, including The Collection at Forsyth and the Shops at Legacy, and maintained a high-visibility dividend with a $0.38 Q4 2025 payout. Despite these constructive updates, price reactions were modest. Today’s $78.0 million sale of the Shops at Legacy North and the stated earnings accretion from recycling capital into Pompano Citi Centre fit into this ongoing repositioning and leasing-driven growth narrative.

Market Pulse Summary

This announcement details CTO’s continued portfolio recycling strategy. The company sold the Shops at Legacy North, a 243,000 square foot Dallas lifestyle center, for $78.0 million, or $321 per square foot, at a low-5% exit cash cap rate. Proceeds are earmarked for a Section 1031 exchange, retroactively funding Pompano Citi Centre and future acquisitions. Combined with $85.1 million year-to-date dispositions and prior leasing progress, investors may watch execution on reinvestments and future occupancy trends.

Key Terms

exit cash cap rate financial

"This disposition at an approximate low-5% exit cash cap rate allows us to recycle"

The exit cash cap rate is the percentage used to convert a property's expected cash income at the time of sale into an estimated sale price; divide the final year’s cash income by this rate to get the terminal value. It matters to investors because small changes in that percentage can greatly alter the projected sale proceeds and overall returns, similar to how a slight change in the interest rate shifts the value of a loan.

section 1031 like-kind exchange financial

"The Company intends to utilize the net proceeds as part of a Section 1031 like-kind exchange"

A section 1031 like-kind exchange lets an investor swap one investment or business property for another similar property and postpone paying capital gains tax on the sale, as long as strict timing and qualification rules are followed. It matters because postponing the tax keeps more money working for you, allowing larger or faster reinvestment—like trading in an asset to upgrade without cashing out—though the tax is delayed, not forgiven.

forward-looking statements regulatory

"Certain statements contained in this press release (other than statements of historical fact) are forward-looking statements"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

reit financial

"the Company’s ability to remain qualified as a REIT; the Company’s exposure"

A real estate investment trust (REIT) is a company that owns, operates, or finances income-producing real estate, like shopping centers, apartments, or office buildings. For investors, REITs offer a way to invest in real estate without having to buy property directly, often providing regular income through dividends. They function like a mutual fund for real estate, making it easier for people to add property investments to their portfolio.

AI-generated analysis. Not financial advice.

WINTER PARK, Fla., Dec. 19, 2025 (GLOBE NEWSWIRE) -- CTO Realty Growth, Inc. (NYSE: CTO) (the “Company” or “CTO”), an owner and operator of high-quality open-air retail centers located predominately in high-growth markets across the Southeast and Southwest, announced today the sale of the Shops at Legacy North, a 243,000-square-foot mixed-use lifestyle center in Dallas, Texas (the “Property”). The Property was sold for $78.0 million, equating to $321 per square foot.

“We are very pleased with the strong pricing achieved on this transaction, which reflects the significant leasing completed at the Shops at Legacy North over the past two years,” said John P. Albright, President and Chief Executive Officer of CTO Realty Growth. “This disposition at an approximate low-5% exit cash cap rate allows us to recycle capital into higher-yielding opportunities including our recent acquisition of Pompano Citi Centre on December 17, 2025, driving immediate earnings accretion.”

The Company intends to utilize the net proceeds as part of a Section 1031 like-kind exchange, retroactively funding the Pompano Citi Centre acquisition, with remaining proceeds earmarked for future acquisitions.

Year-to-date disposition volume is $85.1 million, including the Shops at Legacy North and the Main Street properties, representing a weighted average exit cash cap rate of mid-5%.

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.

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

What did CTO (NYSE: CTO) sell on December 19, 2025?

CTO sold the Shops at Legacy North, a 243,000 sq ft lifestyle center in Dallas, for $78.0 million.

How much did CTO receive per square foot for Shops at Legacy North (CTO)?

The property sold for approximately $321 per square foot.

What exit cap rate did CTO achieve on the Shops at Legacy North sale?

CTO reported an approximate low-5% exit cash cap rate on the transaction.

How will CTO use the proceeds from the $78.0 million sale?

Net proceeds will be used in a Section 1031 like-kind exchange to retroactively fund the Pompano Citi Centre acquisition, with remaining proceeds for future acquisitions.

When did CTO acquire Pompano Citi Centre that the sale helped fund?

CTO acquired Pompano Citi Centre on December 17, 2025.

What is CTO's year-to-date disposition volume after the Shops at Legacy North sale?

Year-to-date disposition volume is $85.1 million, with a weighted average exit cash cap rate of mid-5%.