10-Q · April 28, 2026
CTO reported Q1 2026 revenue of $41,173,000, up 15.0% from $35,811,000 in Q1 2025, driven by income property growth and higher loan interest income. Diluted EPS was $0.56 (actual), beating the consensus estimate of…
Earnings analysis · 10-Q
CTO earnings analysis
Filed July 28, 2026 · Our reading of the company's report
The latest report
CTO delivered Q2 revenue of $43.831 million, up 16.5% year over year, with all three operating segments growing and commercial loans/investments rising 73.4%. GAAP net income swung to $15.112 million and diluted EPS…
Read full summary
CTO delivered Q2 revenue of $43.831 million, up 16.5% year over year, with all three operating segments growing and commercial loans/investments rising 73.4%. GAAP net income swung to $15.112 million and diluted EPS reached $0.38, while Core FFO and AFFO per share increased to $0.53 and $0.55, respectively. The growth case is supported by $34.6 million of six-month operating cash flow and a $300.0 million-$400.0 million investment plan, though leverage, a $1.084 million CECL charge and ATM dilution remain key offsets. Item 1A states there were no material changes to risk factors from the 2025 Form 10-K.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.38
What stood out
-
Revenue growth accelerated year over year
Q2 revenue was $43.831 million, up $6.193 million, or 16.5%, from $37.638 million in Q2 2025. Revenue also increased $2.658 million, or 6.5%, sequentially from the implied Q1 2026 level of $41.173 million.
-
Property operations expanded
Income Properties revenue increased 11.3% to $37.136 million, while segment operating income rose to $26.0 million from $23.2 million. Management attributed growth to portfolio expansion, lease-up activity and same-store revenue.
-
Structured investments drove growth
Commercial Loans and Investments revenue rose 73.4% to $5.229 million, driven principally by two preferred-equity agreements totaling $96.4 million completed during Q2.
-
GAAP earnings swung to profit
Net income attributable to CTO improved to $15.112 million from a $23.418 million loss a year earlier. Diluted GAAP EPS was $0.38, versus a $0.77 loss in Q2 2025, aided by the absence of the prior-year $20.396 million debt-extinguishment loss.
-
Operating cash flow strengthened
Six-month operating cash flow increased $7.1 million to $34.6 million from $27.5 million, reflecting higher cash flow from the expanded and leased-up property portfolio plus commercial investments.
-
Recurring REIT earnings increased
Core FFO per diluted share increased to $0.53 from $0.45 and AFFO per diluted share rose to $0.55 from $0.47. Common dividends remained $0.38 per share, below quarterly AFFO of $0.55 per share.
What to watch
-
Credit-loss reserve charge emerged
CTO recorded a $1.084 million Q2 CECL-reserve charge on commercial loans and investments, compared with no charge in Q2 2025, despite $5.229 million of segment interest income.
-
Higher debt costs and floating-rate exposure
Interest expense rose $0.9 million year over year to $7.8 million as term-loan balances increased. Of the $193.0 million revolver balance, $143.0 million remained unfixed; a 100-basis-point rate increase would affect annualized financial results and cash flows by $1.4 million.
-
Equity issuance diluted per-share base
The company issued 4,917,499 common shares through its ATM in the first half for $97.8 million of net proceeds. Q2 diluted weighted-average shares increased to 35,024,642 from 32,727,831 a year earlier.
-
Capital commitments exceed unrestricted cash
Cash was $8.1 million at June 30, while remaining property-capital commitments were $28.254 million and unfunded construction-loan commitments were $33.5 million. Liquidity also depends on $107.0 million of undrawn revolver capacity and $117.2 million of ATM availability.
Management's outlook
The 10-Q provides no numeric GAAP EPS or revenue outlook. Management maintained its 2026 investment outlook of $300.0 million to $400.0 million for income-producing and structured investments and expects to fund acquisitions with operating cash flow, dispositions/1031 exchanges, revolver borrowings and other financing sources.
Earlier filings 4
10-K · February 19, 2026
CTO delivered multi-year revenue growth to $149.545M in 2025 (from $124.519M in 2024) driven by income properties and higher interest income from commercial loans; operating income doubled to $34.015M in 2025 from…
10-Q · May 1, 2025
CTO reported Q1 revenues of $35,811,000, up $7,684,000 (27.3%) versus Q1 2024, driven by higher income property revenues and interest income from commercial loans. Operating income fell to $7,873,000 from $14,523,000 a…
10-K · February 20, 2025
CTO reported total revenues of $124.519 million in 2024, up from $109.119 million in 2023, driven by income properties ($110.591M) and growth in commercial loan investments. The company completed $224.4 million of…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.