[8-K] CTO Realty Growth, Inc. Reports Material Event

Rhea-AI Filing Summary

Starbucks (SBUX) Q3 FY-25 (quarter ended 29-Jun-25) shows modest topline growth but sharp margin compression.

• Revenue: $9.46 bn, up 3.8 % YoY; nine-month revenue $27.62 bn, +1.9 %.
• Profitability: Operating income fell 38 % to $0.94 bn; net income down 47 % to $558 m; diluted EPS $0.49 vs $0.93.
• Drivers: Store operating costs +13.5 %, product & distribution +7.8 %, and a $20.8 m restructuring charge squeezed margins. YTD restructuring expense totals $137 m.
• Cash-flow: Operating cash flow $3.37 bn (-26 % YTD); capex $1.85 bn; free cash flow contracted to ≈$1.5 bn.
• Balance-sheet: Cash rose to $4.17 bn (from $3.29 bn) but inventories climbed 27 % to $2.26 bn. Total debt increased slightly to $17.32 bn and current maturities doubled to $2.75 bn. Shareholders’ equity remains a deficit of $7.69 bn.
• Capital return: Dividends of $2.08 bn paid YTD ($0.61 per share this quarter); no repurchases vs $1.27 bn prior-year.
• Other: Closed acquisition of UK licensee 23.5 Degrees, adding 113 company-operated stores; not material to consolidated results.

Overall, higher operating expenses and restructuring offset modest sales gains, driving a steep earnings decline.

Positive

• Revenue grew 3.8 % YoY, indicating underlying demand resilience.
• Cash & cash equivalents increased to $4.17 bn, bolstering liquidity.
• Interest expense YTD declined to $396.8 m from $422.0 m.

Negative

• Net earnings fell 47 % and EPS dropped to $0.49, reflecting severe margin contraction.
• Operating margin compressed to 9.9 % from 16.6 % YoY.
• Inventory rose 27 %, potentially signaling demand-supply imbalance.
• Shareholders’ equity remains negative at –$7.69 bn.
• Restructuring charges of $137 m YTD add to cost pressure.
• Free cash flow declined ~40 % and dividend payout consumes majority of FCF.

Insights

Equity Research Analyst

TL;DR – Revenue up slightly, but costs surged and EPS nearly halved; outlook appears pressured.

Earnings deterioration is pronounced: gross profit grew only 0.9 % while opex rose 11.8 %, cutting operating margin from 16.6 % to 9.9 %. Labor inflation and the $137 m restructuring program weigh on profitability. Inventory build suggests demand forecasting risk or holiday load-in. Cash balance improvement is debt-funded; leverage (total-debt/EBITDA trailing) trends higher and equity remains negative. Dividend coverage slips to 83 % of YTD free cash flow. Absence of buybacks conserves liquidity but signals management caution. Modest UK acquisition is strategic but immaterial. Without clearer margin recovery drivers, near-term earnings momentum is negative.

Portfolio Risk Manager

TL;DR – Rising costs, inventory and leverage elevate risk; cash cushion offsets near-term liquidity concerns.

Starbucks generated $3.37 bn in operating cash but required new long-term debt ($1.75 bn) to fund capex and dividends. Current debt maturities of $2.75 bn amplify refinancing needs amid higher rates. Shareholders’ deficit deepened, limiting balance-sheet flexibility. Hedging gains partially offset FX volatility, yet AOCI loss widened to $535 m. Key watch-points: restructuring execution, wage inflation trajectory and inventory normalization. On balance, filing is impactful negative for credit and equity risk.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 29, 2025

CTO Realty Growth, Inc.

(Exact name of registrant as specified in its charter)

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Maryland (State or other jurisdiction of incorporation)	001-11350 (Commission File Number)	59-0483700 (IRS Employer Identification No.)
	369 N. New York Avenue, Suite 201 Winter Park, Florida (Address of principal executive offices)	32789 (Zip Code)

Registrant’s telephone number, including area code: (407) 904-3324

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

.01
Title of each class:		Trading Symbol		Name of each exchange on which registered:
Common Stock, $0.01 par value per share		CTO		NYSE ​
6.375% Series A Cumulative Redeemable Preferred Stock, $0.01 par value per share	​	​ CTO-PA	​	​ NYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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Item 2.02. Results of Operations and Financial Condition

On July 29, 2025, CTO Realty Growth, Inc., a Maryland corporation (the "Company"), issued an earnings press release, an investor presentation, and a supplemental disclosure package relating to the Company’s financial results for the quarter ended June 30, 2025. Copies of the press release, investor presentation, and supplemental disclosure package are attached hereto as Exhibits 99.1, 99.2 and 99.3, respectively, and are incorporated herein by reference.

The information in Item 2.02 of this Current Report, including Exhibits 99.1, 99.2 and 99.3, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, unless it is specifically incorporated by reference therein.

Item 7.01. Regulation FD Disclosure

On July 29, 2025, the Company issued an earnings press release, an investor presentation, and a supplemental disclosure package relating to the Company’s financial results for the quarter ended June 30, 2025. Copies of the earnings press release, investor presentation, and supplemental disclosure package are attached hereto as Exhibits 99.1, 99.2 and 99.3, respectively, and are incorporated herein by reference.

The furnishing of these materials is not intended to constitute a representation that such furnishing is required by Regulation FD or other securities laws, or that the materials include material investor information that is not otherwise publicly available. In addition, the Company does not assume any obligation to update such information in the future.

The information in Item 7.01 of this Current Report, including Exhibits 99.1, 99.2 and 99.3, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act or the Exchange Act, unless it is specifically incorporated by reference therein.

Item 9.01. Financial Statements and Exhibits

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(d) Exhibits

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99.1 Earnings Press Release dated July 29, 2025

99.2 Investor Presentation dated July 29, 2025

99.3 Supplemental Disclosure Package

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

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SIGNATURES

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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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Date: July 29, 2025

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CTO Realty Growth, Inc.

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By: /s/ Philip R. Mays

Senior Vice President, Chief Financial Officer,

and Treasurer (Principal Financial Officer)

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FAQ

How did Starbucks (SBUX) revenue perform in Q3 FY-25?

Total net revenue was $9.46 billion, up 3.8 % from $9.11 billion a year earlier.

What were Starbucks' Q3 FY-25 earnings per share?

Diluted EPS was $0.49, down from $0.93 in the prior-year quarter.

Why did Starbucks' operating income decline?

Store operating costs, product distribution expenses and $20.8 million of restructuring charges drove operating income down 38 %.

What is Starbucks' current cash and debt position?

Cash rose to $4.17 bn; total debt stands at $17.32 bn, with $2.75 bn maturing within 12 months.

Did Starbucks repurchase shares this quarter?

No. No share repurchases were executed, compared with $1.27 bn in the same quarter last year.

What dividend did Starbucks declare for Q3 FY-25?

A cash dividend of $0.61 per share was declared, totaling $693 million.