CTO Realty Growth, Inc. (CTO) Shares Decline Amid Wolfpack Report- Hagens Berman

CTO Investors with Losses Encouraged to Contact Hagens Berman

SAN FRANCISCO, June 26, 2025 /PRNewswire/ -- On June 25, 2025 investors in CTO Realty Growth, Inc. (NYSE: CTO) saw the price of their shares significantly decline after Wolfpack Research published CTO: The B. Riley Of REITS, accusing CTO of misleading investors about its dividend sustainability and engaging in dubious financial activities.

This report has prompted national shareholders rights firm Hagens Berman to open an investigation into the allegations and whether CTO may have violated the securities laws. The firm urges CTO investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys.

Visit: www.hbsslaw.com/investor-fraud/cto

CTO Realty Growth, Inc. (CTO) Investigation:

CTO represents itself as a "self-managed equity REIT that focuses on the ownership, management, and repositioning of high-quality retail and mixed-use properties[.]"

The investigation is focused on the propriety of CTO's assurances to investors that it adheres to applicable accounting rules and its use of certain non-GAAP accounting metrics.

CTO's statements may have come into question on June 25, 2025, when Wolfpack published its report based, in part, on interviews with former employees and whistleblowers, in which it accuses CTO's management team of:

• "[L]ying to investors about the sustainability of their dividend while enriching themselves[;]" and
• "[E]ngag[ing] in accounting shenanigans like using a sham loan to cover up a top tenant's failure."

In contrast to CTO's assurances of "high-quality retail and mixed-use" exposures, Wolfpack identified a subset of CTO properties in extreme financial distress and concluded that CTO is focused on buying and managing aging shopping centers, has not generated sufficient cash to pay its recurring capex, and relies on dilution to cover a $38 million dividend shortfall.

The "linchpin of management's deception," according to Wolfpack, is its "manipulative definition of Adjusted Funds From Operation (AFFO) where they exclude recurring capex, unlike all of their self-identified shopping center REIT peers[]" and management "uses the same non-GAAP metric for 70% of its performance pay, inflating $8 million in bonuses we think they never should have received[.]"

"We're investigating whether CTO may have misled investors about the quality of its real estate portfolio, the reported asset values, and/or the propriety of its use of AFFO," said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in CTO Realty Growth and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »

If you'd like more information and answers to frequently asked questions about the CTO investigation, read more »

Whistleblowers: Persons with non-public information regarding CTO Realty Growth should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

SOURCE Hagens Berman Sobol Shapiro LLP