On June 25, 2025, Wolf Pack Research published a report alleging that CTO Realty Growth, Inc. engaged in "accounting shenanigans like using a sham loan to cover up a top tenant’s failure." The report claimed that the company's management used a sham loan to conceal a top tenant's collapse from shareholders.
The report further accused CTO of obfuscating its financial health by excluding recurring capital expenditures from its Adjusted Funds From Operation (AFFO), a practice it stated was unlike its shopping center REIT peers. It also alleged that management overpaid for properties, thereby sabotaging the company's future for personal gain.
Wolf Pack Research asserted that CTO has not generated enough cash to cover its recurring capital expenditures and dividends since converting to a REIT in 2021, relying instead on shareholder dilution to cover a $38 million dividend shortfall from 2021 to 2024. The report highlighted that CTO had only $8.4 million in cash while facing quarterly dividends of $14 million and average recurring capital expenditures of $5.7 million per quarter, along with $12 million in additional planned capital expenditures.
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