Higher for Longer Interest Rates: Central banks' shift to 'Higher for Longer' rates significantly impacts REITs like CTO Realty Growth. Increased borrowing costs for new acquisitions and refinancing existing debt can compress margins and slow growth, especially given CTO's reported high leverage risk and net debt/EBITDA of 6.4x.

Inflation and Consumer Spending: Escalating inflation (e.g., US inflation at 3.3% due to Iran War) could be a double-edged sword. While property values and rents may increase with inflation, prolonged high inflation, coupled with the Strait of Hormuz closure sustaining oil price volatility, could dampen consumer confidence and spending, directly affecting the retail tenants that CTO relies on for rental income, despite its focus on essential retail.

Economic Uncertainty from Geopolitical Events: Geopolitical tensions, such as the Iran War escalation and the Strait of Hormuz closure, contribute to global economic uncertainty. This can lead to reduced investor confidence, higher market volatility, and potentially slower economic growth, which could impact real estate investment activity and the financial health of CTO's tenants.