{
  "docId": "019dd923-622c-750b-8b9a-a34e1e87d1d8",
  "docSlug": "ebebcd140b34",
  "documentTitle": "CTO Realty Growth, Inc. (CTO)",
  "authorId": "60_Wolfpack_Research",
  "authorName": "Wolfpack Research",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2025-06-25 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 9,
  "pageCount": 30,
  "prevPage": 8,
  "nextPage": 10,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 3,
  "notes": "The slide uses a narrative structure to link property-level mismanagement with corporate-level financial reporting obfuscation.",
  "elementsJson": [
    "paragraph"
  ],
  "metadataConfidence": 0.9,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b9a-a34e1e87d1d8/9",
  "deckHref": "/decks/019dd923-622c-750b-8b9a-a34e1e87d1d8",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-a34e1e87d1d8.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-a34e1e87d1d8#slide-9",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "CTO is Obscuring the Fact that Their Core Cash Flows from Operations Have Never Been Enough to Cover Their Dividend and Pay for Recurring Capex with an AFFO Metric That Is an Aberration from Their Peers",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-78b5-7512-b5a7-e37372bfc2a6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.78,
        "x": 0.11,
        "y": 0.61
      },
      "kind": "paragraph",
      "text": "According to a former employee familiar with this property and this type of building, CTO has received above-market rents of $27.73 per square foot from Southern University. We believe this makes it more likely that the tenant vacates, surrenders in FY 2026, or is given a massive discount to renew at lease end.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1400e54b-2696-4e41-ab27-af123d685e31",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.78,
        "x": 0.11,
        "y": 0.09
      },
      "kind": "paragraph",
      "text": "And this still matters because CTO has been unable to lure in a replacement tenant, and has only re-let 1/3 of the space according to management on the Q3 2024 earnings call:",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2f9bac5c-7fa1-48ba-bcbb-380dc5864627",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.07,
        "w": 0.78,
        "x": 0.11,
        "y": 0.52
      },
      "kind": "paragraph",
      "text": "One of CTO’s largest tenants is up for renewal in 2026, and the location is not just experiencing lower foot traffic, but their tenant is trying (and failing) to sublease 1/3rd of their space. Shadow vacancies indicate lower interest in the property, which does not bode well for future rents or capital destructive tenant churn.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "bc76dba7-7721-469c-8479-8939f18bcc69",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.11,
        "w": 0.78,
        "x": 0.11,
        "y": 0.19
      },
      "kind": "paragraph",
      "text": "In Q1 2025, occupancy hit an all-time low of 56%, so much for a high-end shopping center. The site appears to have no real future. A local news article points out that the same developer who built the Shops at Legacy built a newer shopping center called Legacy West in 2017 that reportedly has taken much of the luster (and foot traffic) from the Shops. This same developer is now building a new high-end shopping center, Fields West just down the road.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d0c7bfc9-4462-44ec-8c6c-f38199e20d91",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.78,
        "x": 0.11,
        "y": 0.79
      },
      "kind": "paragraph",
      "text": "As seen in Appendix A, when CTO’s peers disclose AFFO, they deduct maintenance capex from FFO; however, CTO does not. This hides the fact that CTO has never, since becoming a REIT in 2020, brought in enough core cash flows from operations to pay for their dividend and recurring capex.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "de8dd83a-53e2-40ec-a1a0-db2a69565d2a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.07,
        "w": 0.7,
        "x": 0.15,
        "y": 0.36
      },
      "kind": "quote",
      "text": "Sometimes things end up with public companies and public real estate investment funds, and they don't necessarily invest the capital to keep them refreshed. The sidewalks get broken, buildings' color changes. You have to go out there and invest the money to do the upkeep.",
      "attrs": null,
      "subkind": "pull-quote",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3b45991a-9eb8-43d7-afa2-0cd4f37f78d5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.7,
        "x": 0.15,
        "y": 0.14
      },
      "kind": "quote",
      "text": "Notable new leases included ...20,000 square feet of the former WeWork space to the Legacy Club.",
      "attrs": null,
      "subkind": "pull-quote",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8702a231-0f3d-4021-a0b2-fe36dc22db83",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "Sometimes things end up with public companies and public real estate investment funds, and they don't necessarily invest the capital to keep them refreshed. The sidewalks get broken, buildings' color changes. You have to go out there and invest the money to do the upkeep. — Karahan (quoted in Local Profile)",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-78b5-7512-b5a7-e7bf5e80ab1b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.78,
        "x": 0.11,
        "y": 0.72
      },
      "kind": "title",
      "text": "CTO is Obscuring the Fact that Their Core Cash Flows from Operations Have Never Been Enough to Cover Their Dividend and Pay for Recurring Capex with An AFFO Metric That Is an Aberration from Their Peers",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "14717070-6b21-424f-b39d-fd4341a4d2f5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.78,
        "x": 0.11,
        "y": 0.45
      },
      "kind": "title",
      "text": "CTO’s Seventh Largest Tenant, Southern U, Has A Shadow Vacancy and Falling Foot-Traffic with Renewal in 2026 Pointing to Lower Future Rents or Vacancy",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ba5ae356-0a3a-44ce-8d52-d61a8a818a0a",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 14,
      "from": 6,
      "beatId": "17c83035-41f6-4454-b0d2-f1032bbe24be",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Struggle",
      "beatSlug": "overcoming-monster-the-struggle",
      "evidence": "Expose contradictions in CTO's financial reporting",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}