CTO Realty Growth announced the acquisition of Palms Crossing, a 399,000‑square‑foot open‑air retail center in McAllen, Texas, for $81.6 million. The 47‑acre property sits in a market with a 200,000‑person population within five miles and is 98% leased to anchor tenants including Best Buy, Hobby Lobby, Burlington Coat Factory, Barnes & Noble, and Nike.
The purchase expands CTO’s Texas presence, making the state its third‑largest by annualized cash base rent and increasing the share of cash ABR from Georgia, Florida, Texas and North Carolina to 85%. The deal aligns with the company’s strategy of acquiring high‑quality, near‑full‑lease retail centers in growth markets, adding a property with strong anchor tenants and high occupancy to its portfolio and positioning CTO for continued leasing momentum and earnings acceleration.
CTO plans to fund the acquisition with available cash and its revolving credit facility, and expects to sell a property in mid‑2026 to retroactively fund the purchase. The company ended 2025 with $167 million in liquidity, including $149 million available under its revolving credit facility, underscoring its capacity to support the transaction while maintaining a robust cash position.
The acquisition builds on the momentum from CTO’s Q4 2025 earnings, which reported record high leased occupancy of 95.9%, same‑property NOI growth of 4.3%, and an EPS of $0.82 versus a consensus estimate of $0.02. Revenue of $38.34 million also beat expectations. The addition of Palms Crossing, with its high occupancy and strong anchor tenants, reinforces the company’s leasing performance and supports its earnings acceleration narrative.
CEO John Albright highlighted the robust Q4 2025 results and the company’s focus on higher‑growth Southeast and Southwest markets, while CFO Philip Mays provided 2026 guidance of core FFO $1.98‑$2.03 and AFFO $2.11‑$2.16 per diluted share. The acquisition supports these outlooks by adding a high‑quality asset that is expected to contribute to cash flow and occupancy stability in a key growth region.
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