Form 4: CTO Realty SVP Acquires 11,266 Restricted Shares

CTO Realty Growth, Inc.'s SVP, General Counsel, and Corporate Secretary, Daniel Earl Smith, reported the acquisition of 11,266 restricted common shares.

Summary

• Daniel Earl Smith, SVP, General Counsel & Corporate Secretary of CTO Realty Growth, Inc., acquired 11,266 restricted shares of common stock.
• These shares were acquired at a price of $0.
• The restricted shares will vest in three equal installments on the first, second, and third anniversaries of January 28, 2026, contingent on continued employment.
• Following this transaction, Mr. Smith directly beneficially owns 208,842 shares of common stock, which includes the newly acquired shares and 10,544 previously reported restricted shares.
• Mr. Smith also indirectly beneficially owns 3,000 shares through a Kathyleen R. Smith TOD account and 3,000 shares through a Kathyleen R. Smith WFCS Custodian Trad IRA, where he has authority to direct voting and disposition via a durable power of attorney.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive signal, as increased insider ownership through equity compensation generally aligns executive interests with shareholder value, though it's a routine transaction.

Positives

• Increased insider ownership by a key executive, Daniel Earl Smith, through the acquisition of 11,266 restricted shares.
• The vesting schedule for the restricted shares aligns management's long-term interests with shareholder value over a three-year period.

Risks

• The vesting of the restricted shares is contingent upon the reporting person's continued employment with the Issuer, posing a risk to the full realization of these shares if employment ceases.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that insider equity grants, such as these restricted shares, are a common practice in the real estate investment trust (REIT) sector to incentivize and retain key executives, aligning their interests with long-term company performance.

Related Party Transactions

• Daniel Earl Smith has indirect beneficial ownership of 3,000 shares in a Kathyleen R. Smith TOD account and 3,000 shares in a Kathyleen R. Smith WFCS Custodian Trad IRA, where he has authority to direct voting and disposition via a durable power of attorney. He disclaims beneficial ownership except for his pecuniary interest.

Stakeholder Impact

• Shareholders may view the increased insider ownership as a positive sign of management's commitment and alignment with long-term company performance.
• Employees (specifically Daniel Earl Smith) are incentivized through equity compensation, which ties their financial success to the company's performance.

Next Steps

• One-third of the 11,266 restricted shares will vest on January 28, 2027 (first anniversary).
• Another one-third of the 11,266 restricted shares will vest on January 28, 2028 (second anniversary).
• The final one-third of the 11,266 restricted shares will vest on January 28, 2029 (third anniversary).

Key Dates

Keywords

CTO Realty Growth, Daniel Earl Smith, Insider Transaction, Form 4, Restricted Stock, Beneficial Ownership, Corporate Secretary, General Counsel, Equity Compensation, CTO