Investors of CTO Realty Growth Urged to Act Following Securities Class Action Announcement

Immediate Action Required for Investors of CTO Realty Growth

In a recent development, shareholders of CTO Realty Growth, Inc. (NYSE: CTO) who have experienced financial losses are being urged to contact Wolf Haldenstein Adler Freeman & Herz LLP without delay. A securities class action lawsuit has been initiated in the United States District Court for the Middle District of Florida. This lawsuit affects individuals and entities that acquired shares of CTO securities between February 18, 2021, and June 24, 2025, marking a significant period of contention for the company.

Allegations Against CTO Realty Growth

The lawsuit asserts that CTO Realty Growth, along with its executives, made numerous misleading statements and failed to disclose critical information regarding the sustainability of its dividends. Specifically, it is claimed that:
1. The company's dividends were not as reliable as communicated.
2. CTO employed dubious and unsustainable approaches to inflate their Adjusted Funds From Operations (AFFO) figures, consequently overstating the financial health of their Ashford Lane property.
3. Overall, CTO engaged in communication that misrepresented the company's true business and financial health.

The fallout from these allegations came to a head on June 25, 2025, when a damning report published by Wolfpack Research described CTO Realty Growth as the “B. Riley of REITs”. This report suggested that the company had not generated sufficient cash to cover its ongoing capital expenditures and dividend obligations since its conversion to a Real Estate Investment Trust (REIT) in 2021. Instead, they allegedly relied on dilutive measures, which included a dramatic 70% increase in shares since December 2022, to manage a staggering dividend shortfall of $38 million that occurred from 2021 to 2024.

Furthermore, the report accused CTO of manipulating the definition of AFFO by excluding routine capital expenditures, thus presenting an inflated portrayal of the company’s profitability compared to its competitors. The report also detailed a concerning scenario where CTO faced an urgent need for further dilution, with only $8.4 million in cash at hand, a substantial quarterly dividend requirement of $14 million, and additional recurring capital expenditures estimated at $5.7 million.

The Consequences of the Findings

As a result of the publication of the Wolfpack Research report, CTO's stock price plummeted by $0.98 per share, representing a 5.42% decrease, closing at $17.10 the same day. This swift decline in shareholder value has left many investors reeling and searching for recourse, prompting the current call to action from Wolf Haldenstein.

How Investors Can Get Involved

Investors who have suffered losses during the specified class period are urged to take action by October 7, 2025. This date marks the deadline for seeking the appointment as lead plaintiff within the class action case. Interested individuals can contact Wolf Haldenstein directly at (800) 575-0735 or (212) 545-4774. Those affected or with information relevant to the investigation are also encouraged to reach out for assistance.

Why Choose Wolf Haldenstein?

Wolf Haldenstein Adler Freeman & Herz LLP is a reputable law firm with a lineage of over 125 years dedicated to advocating for investor rights in the realm of securities litigation. Founded in 1888, the firm utilizes their vast experience to bring justice to investors who may have been misled by corporate deceit.

This lawsuit presents a crucial opportunity for investors who have been wronged by CTO Realty Growth's alleged misconduct to seek financial restitution. Therefore, it is imperative for all impacted parties to act promptly and consider joining the class action to hold the company accountable for its supposed misrepresentation.

For more inquiries or case details, please visit Wolf Haldenstein Adler Freeman & Herz LLP’s official website or contact the appointed case director, Gregory Stone, for specific counsel on this issue.