CTO Realty (CTO) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Fri, February 20, 2026 astatine 9:13 AM CST 25 min read

Image source: The Motley Fool.

Friday, Feb. 20, 2026 astatine 9 a.m. ET

• President and Chief Executive Officer — John P. Albright

• Senior Vice President, Chief Financial Officer, and Treasurer — Philip R. Mays

Need a punctuation from a Motley Fool analyst? Email [email protected]

John P. Albright: Thanks, Jenna, and bully morning, everyone. We are pleased to study a robust 4th fourth highlighted by grounds precocious lease occupancy of 95.9%, aforesaid spot NOI maturation for our buying centers of 4.3%, and the antecedently announced acquisition of a buying halfway successful South Florida. Our strategical absorption connected buying centers located successful the higher maturation Southeast and Southwest markets of the U.S. on with the proactive plus absorption leasing is producing beardown results crossed each areas of our business. Nowhere is this amended illustrated than successful our retail leasing results. During the 4th quarter, we signed leases for 189,000 quadrate feet, including 167,000 quadrate feet of comparable leases and a currency rent summation of 31%.

For the afloat year, we signed leases for a grounds 671,000 quadrate feet, including 592,000 quadrate feet of comparable leases astatine a currency rent summation of 24%. Further, we proceed to marque meaningful advancement backfilling our 10 anchor spaces. As antecedently announced successful the 4th quarter, we signed a lease with a nationalist concern people retailer astatine Marketplace Seminole Town Center for 48,000 quadrate feet. This azygous lease consolidated the 34,000 quadrate feet formerly occupied by Big Lots, 9,000 quadrate feet of tiny store space, and 5,000 quadrate feet of caller enlargement space. Further, this lease brought america to 7 resolved anchor spaces successful 2025, totaling 177,000 quadrate feet.

Additionally, we are successful progressive negotiations for the 3 remaining anchor spaces and the Value City, astatine Carolina Pavilion, which we expect to get backmost successful aboriginal 2026. Notably, each combined, we expect to execute a affirmative currency rent dispersed of astir 60%, the precocious extremity of the targeted scope antecedently disclosed. So portion getting these boxes backmost did effect successful impermanent downtime, it yet accelerated our quality to execute higher rents and stronger tenant credits on with driving higher lawsuit postulation to the respective center. More broadly, arsenic of twelvemonth end, our signed not unfastened pipeline stands astatine $6,100,000.0 representing astir 5.8% of yearly cash-based rents.

We judge this pipeline positions america for meaningful net maturation arsenic reflected successful our outlook with astir fractional of the signed not unfastened pipeline anticipated to beryllium recognized successful 2026 and 100% successful 2027. Moving to concern activity. In December, we acquired Pompano City Center, an open-air retail halfway located connected 35 acres successful the Pompano Beach submarket of Fort Lauderdale, Florida, for $65,200,000.0. The spot consists of 509,000 quadrate feet of operating abstraction that is presently 92% occupied, positive 62,000 quadrate feet of unfinished ammunition abstraction chiefly connected the 2nd level presenting aboriginal leasing opportunity. Pompano City Center is anchored by Burlington, TJ Maxx, Nordstrom Rack, Ross Dress for Less, and JCPenney.