CTO Realty Growth announced the sale of its 243,000‑square‑foot Shops at Legacy North, a mixed‑use lifestyle center in Dallas, Texas, for $78 million on December 19, 2025. The transaction values the property at $321 per square foot and delivers a low‑5% exit cash cap rate, underscoring the company’s ability to secure attractive pricing in a competitive retail‑mixed‑use market.
The sale is part of CTO Realty Growth’s active portfolio‑optimization strategy. Proceeds will be used in a Section 1031 like‑kind exchange to fund the company’s recent acquisition of Pompano Citi Centre in Florida, which closed on December 17, 2025 for $65.2 million. By recycling capital from a mature Dallas asset into a higher‑yielding Florida property, the company aims to drive immediate earnings accretion and position itself for future growth in high‑potential markets.
Financially, the transaction aligns with the company’s recent performance. In the third quarter of 2025, CTO Realty Growth reported revenue of $37.76 million, slightly above analyst expectations of $37.69 million, and an EPS of $0.03, a modest miss against the $0 consensus. The sale adds $78 million to the company’s cash reserves, strengthening its balance sheet and providing liquidity for strategic acquisitions and portfolio refinements.
The transaction also complements the company’s year‑to‑date disposition activity, which totals $85.1 million. In addition to the Dallas property, CTO Realty Growth sold its Main Street properties in Daytona Beach, FL, for $7.1 million in August 2025. The cumulative disposals demonstrate a disciplined approach to divesting lower‑yield assets and reallocating capital toward higher‑return opportunities.
CEO John P. Albright highlighted the strong pricing achieved on the sale, attributing it to significant leasing activity over the past two years. He emphasized that the capital recycling strategy “provides a clear path to higher‑yielding opportunities and immediate earnings accretion,” reinforcing the company’s focus on portfolio optimization and value creation for shareholders.
The sale signals CTO Realty Growth’s continued commitment to active portfolio management. By divesting a mature Dallas asset and reinvesting in a Florida property with higher yield potential, the company is positioning itself to capture growth in markets with robust retail demand while maintaining a balanced risk profile. This strategic shift is expected to enhance the company’s long‑term return profile and support future acquisition opportunities.
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