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  "documentTitle": "CTO Realty Growth, Inc. (CTO)",
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  "authorName": "Wolfpack Research",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2025-06-25 00:00:00",
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  "notes": "The slide uses a table to recalculate AFFO by stripping out intangible asset amortization, highlighting a growing delta over three years.",
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      "text": "How Does This End? Without A Major Improvement in Cash Flows, We Think Every Option is Dilutive to NAV",
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      "text": "Reported AFFO (Excl. Intangible Depreciation): 19,292",
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      "text": "CTO’s fundamental problem is that its tenants are not paying enough in terms of rent to cover its costs and sustain its current dividends. CTO is not sitting on a large pile of cash, so management needs to find some other way to make up this gap. So far, it appears management has leaned heavily on dilution.",
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      "text": "In 2024, CTO reported a full year depreciation and amortization add back of $65 million. In their 10-K, CTO discloses that, “The amount of depreciation of property, plant, and equipment, exclusive of amortization related to intangible assets, recognized for the years ended December 31, 2024, 2023, and 2022, was $33.5 million, $25.7 million, and $16.6 million, respectively.”",
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      "text": "In our view, the fact that management’s compensation is directly affected by the assumptions they are making in valuing these assets is very very troubling. And ironically, the more money management spends on a property, the more room they have to play around with the valuation of the intangible assets.",
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      "text": "They could pull other levers, perhaps they could start leaning on debt or selling assets to pay their dividends. All these options are ultimately dilutive to the net asset value of the company and will ultimately drive down the value of the stock. At the end of the day, what we see is a management team who wins as this company fails.",
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      "kind": "paragraph",
      "text": "This creates an intangible asset that depreciates just like the rest of the property, allowing it to be added back into the standard FFO calculation.",
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      "text": "Over the last three years, CTO has added $62 million to their intangible assets. The fair value of these intangible assets is described as a critical audit matter by CTO’s independent auditor, Grant Thornton,57 meaning that the values given by management are not necessarily objective, but subject to considerable judgement.",
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      "text": "The amount of depreciation of property, plant, and equipment, exclusive of amortization related to intangible assets, recognized for the years ended December 31, 2024, 2023, and 2022, was $33.5 million, $25.7 million, and $16.6 million, respectively. — CTO Realty 10-K",
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