Impending Deadline for Investors in CTO Realty Growth: Legal Investigation Underway

Investors Alert: CTO Realty Growth Under Scrutiny

In a significant development for shareholders of CTO Realty Growth, Inc. (NYSE: CTO), the national securities law firm, Faruqi & Faruqi, LLP, has initiated an investigation into potential claims related to the company. This investigation comes as a vital reminder that the deadline for investors to seek the role of lead plaintiff in a federal securities class action is approaching—specifically on October 7, 2025.

Since its inception in 1995, Faruqi & Faruqi has successfully reclaimed hundreds of millions of dollars for investors, and their focus on protecting shareholder rights remains unwavering. Now, the firm is encouraging investors who have incurred losses exceeding $75,000 in CTO Realty Growth from February 18, 2021, to June 24, 2025, to reach out and discuss their legal options directly with Partner Josh Wilson.

The allegations brought forth in the investigation imply that the company’s executives allegedly violated federal securities laws through intentional misrepresentation and failure to disclose critical information. Specifically, claims have been made that CTO's dividends were less sustainable than what was presented to investors, raising concerns about the integrity of the company's financial practices.

A report from Wolfpack Research has exacerbated the situation, comparing CTO unfavorably to B. Riley—a financial institution that saw its value plummet by over 90%. According to the report, CTO has been heavily relying on misleading financial practices, including artificially inflating Adjusted Funds from Operations (AFFO) and misrepresenting the profitability of its properties, particularly the Ashford Lane location. These tactics allegedly contributed to a severe misalignment between stated financial health and actual performance.

In a startling revelation, the Wolfpack Report indicates that CTO has not been generating enough cash to cover recurring capital expenditures and dividends since transitioning to a REIT in 2021. To bridge a staggering dividend shortfall, the company has increased the number of outstanding shares by 70% since December 2022. This practice is concerning and raises significant red flags for stakeholders.

Further complicating the matter, the report highlights CTO’s precarious financial situation, noting it holds just $8.4 million in cash while facing quarterly dividend obligations of $14 million and recurring capital expenses averaging $5.7 million each quarter. This alarming financial snapshot brings into question the sustainability of CTO’s business model moving forward.

The recent market reaction corroborates these concerns; on June 25, 2025, CTO's stock price saw a notable decline of 5.42%, dropping by $0.98 per share to close at $17.10. This drop indicates deteriorating investor confidence as the market reacts to the unfolding situation.

Faruqi & Faruqi reinforces that any investor affected by these circumstances has the right to voice concerns and possibly lead the class action, should they choose to. They stress that participation in the class action doesn’t hinder any potential recovery of losses, offering members a crucial opportunity to stand united against corporate malfeasance.

Moreover, the firm welcomes insights from anyone who may have relevant information about CTO's actions, including whistleblowers and former employees.

For more details about the ongoing investigation and to stay updated, interested parties can visit the firm's dedicated webpage at Faruqi & Faruqi or contact Josh Wilson directly at 877-247-4292.

The time-sensitive nature of these proceedings underscores the importance for investors of CTO Realty Growth to act promptly and seek legal guidance ahead of the approaching deadline. Amid an environment fraught with uncertainty, investors must navigate these troubled waters with informed legal support, championing their rights in the face of corporate challenges.