CTO Realty Growth, Inc. Fair Value Disclosure
NOTE 9. FAIR VALUE OF FINANCIAL INSTRUMENTS
The following table presents the carrying value and estimated fair value of the Company’s financial instruments not carried at fair value on the consolidated balance sheets at December 31, 2025 and 2024 (in thousands):
December 31, 2025 | December 31, 2024 | |||||||||||
| Carrying Value | | Estimated Fair Value | | Carrying Value | | Estimated Fair Value | |||||
Cash and Cash Equivalents - Level 1 | $ | 6,467 | $ | 6,467 | $ | 9,017 | $ | 9,017 | ||||
Restricted Cash - Level 1 | $ | 34,652 | $ | 34,652 | $ | 8,344 | $ | 8,344 | ||||
Commercial Loans and Investments - Level 2 | $ | 104,804 | $ | 109,828 | $ | 105,043 | $ | 110,665 | ||||
Long-Term Debt - Level 2 | $ | 616,345 | $ | 608,419 | $ | 518,993 | $ | 508,309 | ||||
To determine estimated fair values of the financial instruments listed above, market rates of interest, which include credit assumptions, were used to discount contractual cash flows. The estimated fair values are not necessarily indicative of the amount the Company could realize on disposition of the financial instruments. The use of different market assumptions or estimation methodologies could have a material effect on the estimated fair value amounts.
The following table presents the fair value of assets (liabilities) measured on a recurring basis by level as of December 31, 2025 and 2024 (in thousands). See Note 17, “Interest Rate Swaps” for further disclosure related to the Company’s interest rate swaps.
Fair Value at Reporting Date Using | ||||||||||||
Fair Value | | Quoted Prices in Active Markets for Identical Assets | | Significant Other Observable Inputs | | Significant Unobservable Inputs | ||||||
December 31, 2025 | ||||||||||||
Cash Flow Hedge - 2027 Term Loan Interest Rate Swaps | $ | 1,496 | | $ | — | | $ | 1,496 | | $ | — | |
Cash Flow Hedge - 2028 Term Loan Interest Rate Swaps | $ | (1,351) | | $ | — | | $ | (1,351) | | $ | — | |
Cash Flow Hedge - 2029 Term Loan Interest Rate Swaps | $ | (5) | | $ | — | | $ | (5) | | $ | — | |
Cash Flow Hedge - 2030 Term Loan Interest Rate Swaps | $ | (48) | | $ | — | | $ | (48) | | $ | — | |
Cash Flow Hedge - Credit Facility Interest Rate Swaps | $ | (497) | | $ | — | | $ | (497) | | $ | — | |
Investment Securities | $ | 41,324 | | $ | 41,324 | | $ | — | | $ | — | |
December 31, 2024 | ||||||||||||
Cash Flow Hedge - 2026 Term Loan Interest Rate Swaps | $ | 2,372 | | $ | — | | $ | 2,372 | | $ | — | |
Cash Flow Hedge - 2027 Term Loan Interest Rate Swaps | $ | 5,854 | | $ | — | | $ | 5,854 | | $ | — | |
Cash Flow Hedge - 2028 Term Loan Interest Rate Swaps | $ | 1,001 | | $ | — | | $ | 1,001 | | $ | — | |
Cash Flow Hedge - 2029 Term Loan Interest Rate Swaps | $ | 3,099 | $ | — | $ | 3,099 | $ | — | ||||
Cash Flow Hedge - Credit Facility Interest Rate Swaps | $ | 191 | | $ | — | $ | 191 | $ | — | |||
Investment Securities | $ | 39,666 | | $ | 39,666 | | $ | — | | $ | — | |
No assets were measured on a non-recurring basis as of December 31, 2025 or 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Mar 5, 2021 | |
| 2019 | Mar 6, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Mar 1, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.