CTO Realty Growth Raises 2026 Core FFO Guidance to $2.06–$2.11 After $81.6M Acquisition
CTO Realty Growth acquired Palms Crossing for $81.6 million and reported Q1 Core FFO of $0.52 per share, up from $0.46, with shopping center same-property NOI rising 6.8% (4.2% ex non-recurring). It raised 2026 Core FFO guidance to $2.06–$2.11 per share and investment guidance to $175–$250 million.
1. Q1 Financial Results
CTO reported net income of $0.13 per diluted share and Core FFO of $0.52 per share in Q1 2026, compared with $0.46 in Q1 2025. Adjusted FFO reached $0.56 per diluted share, reflecting improved cash flows and contributions from its shopping center portfolio.
2. Portfolio Operations and Leasing
Shopping center same-property NOI increased 6.8% year-over-year (4.2% excluding non-recurring benefits), driven by a 14% positive cash rent spread on 146,000 square feet of comparable leases. Leased occupancy rose to 95.4%, and the signed-not-open pipeline stood at $6.2 million, representing 5.5% of in-place cash ABR.
3. Acquisition and Investments
The company acquired Palms Crossing, a 399,000-square-foot open-air retail center in McAllen, Texas, for $81.6 million, currently 98% leased by national anchors. It also invested $75.0 million of preferred equity in a Class A retail property at a 12% initial cash yield and received full repayment of a $30.0 million preferred investment in Watters Creek.
4. 2026 Outlook and Guidance
CTO raised its 2026 investment guidance range to $175 million–$250 million and lifted Core FFO per share guidance to $2.06–$2.11 (from $1.98–$2.03) and AFFO to $2.19–$2.24. The revised outlook assumes continued leasing momentum, realized pipeline contributions and disciplined capital deployment in high-growth markets.