Alpine Income (PINE) came out with quarterly funds from operations (FFO) of $0.43 per share, beating the Zacks Consensus Estimate of $0.39 per share. This compares to FFO of $0.37 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an FFO surprise of 10.26%. A quarter ago, it was expected that this company would post FFO of $0.38 per share when it actually produced FFO of $0.41, delivering a surprise of 7.89%. Over the last four quarters, the company ha ...

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Alpine Income Property Trust reported strong Q2 2024 results, with FFO and AFFO per diluted share up 16.2% to $0.43, and raised full-year guidance Key Financial Metrics (Q2 2024) | Metric | Q2 2024 | YoY Change | | :--- | :--- | :--- | | FFO per Diluted Share | $0.43 | +16.2% | | AFFO per Diluted Share | $0.43 | +16.2% | - Acquired a net lease retail property for **$14.6 million**, which is 100% leased to two investment-grade tenants[36](index=36&type=chunk) - Originated a first mortgage construction loan with a total commitment of **$6.1 million** at a yield of **11.5%**[5](index=5&type=chunk) - Sold two net lease properties for **$6.6 million** at a weighted average exit cash cap rate of **7.0%**, generating gains of **$0.9 million**[11](index=11&type=chunk) - Increased full-year 2024 FFO and AFFO guidance, representing a **4.2% increase** at the midpoint of the new ranges[6](index=6&type=chunk) [Financial Performance](index=3&type=section&id=Financial%20Performance) The company achieved solid top-line growth and robust FFO and AFFO increases for both the quarter and year-to-date periods [Quarterly Results (Q2 2024)](index=3&type=section&id=Quarterly%20Results%20(Q2%202024)) Q2 2024 saw total revenues grow 10.1% to $12.5 million, with FFO and AFFO per diluted share significantly increasing to $0.43 Q2 2024 Financial Performance Summary (in thousands) | Financial Metric | Q2 2024 | Q2 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $12,490 | $11,348 | +10.1% | | Net Income Attributable to PINE | $204 | $80 | +155.0% | | FFO | $6,313 | $5,770 | +9.4% | | FFO per Diluted Share | $0.43 | $0.37 | +16.2% | | AFFO | $6,399 | $5,843 | +9.5% | | AFFO per Diluted Share | $0.43 | $0.37 | +16.2% | [Year-to-Date Results (Six Months Ended June 30, 2024)](index=3&type=section&id=Year-to-Date%20Results%20(Six%20Months%20Ended%20June%2030%2C%202024)) Year-to-date total revenues increased 10.9% to $25.0 million, with FFO and AFFO per diluted share growing over 16% despite a net loss Year-to-Date Financial Performance Summary (in thousands) | Financial Metric | YTD 2024 | YTD 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $24,956 | $22,504 | +10.9% | | Net (Loss) Income Attributable to PINE | ($56) | $3,419 | -101.6% | | FFO | $12,443 | $11,397 | +9.2% | | FFO per Diluted Share | $0.84 | $0.72 | +16.7% | | AFFO | $12,642 | $11,478 | +10.1% | | AFFO per Diluted Share | $0.85 | $0.73 | +16.4% | [Investment & Disposition Activity](index=5&type=section&id=Investment%20%26%20Disposition%20Activity) Q2 2024 saw $20.7 million in investments, including property acquisitions and loan originations, alongside $20.2 million in dispositions - Acquired one retail property for **$14.6 million**, leased to investment-grade tenants Best Buy and Golf Galaxy (Dick's Sporting Goods)[40](index=40&type=chunk) - Originated one first mortgage construction loan with a total funding commitment of **$6.1 million** at a yield of **11.5%**[41](index=41&type=chunk) - Sold two net lease properties for **$6.6 million** at a weighted average exit cash cap rate of **7.0%**[43](index=43&type=chunk) - Sold a **$13.6 million** A-1 participation interest in a portfolio loan at a yield of **8.0%**[19](index=19&type=chunk) [Property Portfolio Overview](index=5&type=section&id=Property%20Portfolio%20Overview) PINE's portfolio consists of 137 high-quality properties with 99.1% occupancy, diversified across states and industries, with 67% ABR from investment-grade tenants [Portfolio Summary](index=5&type=section&id=Portfolio%20Summary) The portfolio comprises 137 properties totaling 3.8 million square feet, with 99.1% occupancy and 90% of ABR from credit-rated tenants Property Portfolio Key Metrics | Metric | Value | | :--- | :--- | | Number of Properties | 137 | | Square Feet | 3.8 million | | Annualized Base Rent | $39.8 million | | Weighted Average Remaining Lease Term | 6.6 years | | Occupancy | 99.1% | | % of ABR from Investment Grade Rated Tenants | 67% | | % of ABR from Credit Rated Tenants | 90% | [Top Tenants](index=7&type=section&id=Top%20Tenants) The portfolio's top tenants are primarily investment-grade retailers, with Walgreens, Dick's Sporting Goods, and Lowe's as the largest contributors Top Tenants by Annualized Base Rent | Tenant | % of Annualized Base Rent | | :--- | :--- | | Walgreens | 12% | | Dick's Sporting Goods | 10% | | Lowe's | 9% | | Dollar Tree/Family Dollar | 8% | | Best Buy | 6% | | Dollar General | 5% | | Walmart | 5% | [Industry and Geographic Diversification](index=7&type=section&id=Industry%20and%20Geographic%20Diversification) The portfolio is diversified across defensive retail sectors and 34 states, with key concentrations in dollar stores, sporting goods, and New Jersey Industry Diversification by Annualized Base Rent | Industry | % of Annualized Base Rent | | :--- | :--- | | Dollar Stores | 14% | | Sporting Goods | 13% | | Pharmacy | 13% | | Home Improvement | 13% | Geographic Diversification by Annualized Base Rent | State | % of Annualized Base Rent | | :--- | :--- | | New Jersey | 12% | | Texas | 9% | | New York | 8% | | Illinois | 7% | | Michigan | 7% | | Ohio | 7% | [Capital Structure and Liquidity](index=9&type=section&id=Capital%20Structure%20and%20Liquidity) As of June 30, 2024, PINE's total debt was $269.0 million at a 3.75% weighted average rate, with stable credit metrics Debt Structure as of June 30, 2024 | Debt Component | Principal | Wtd. Avg. Rate (as of 6/30/24) | Maturity Date | | :--- | :--- | :--- | :--- | | 2026 Term Loan | $100.0 million | 3.65% | May 2026 | | 2027 Term Loan | $100.0 million | 2.73% | January 2027 | | Revolving Credit Facility | $69.0 million | 5.39% | January 2027 | | **Total Debt** | **$269.0 million** | **3.75%** | | - As of June 30, 2024, the company's net debt to Pro Forma EBITDA was **7.4x**, and its fixed charge coverage ratio was **3.4x**[28](index=28&type=chunk) [Dividends](index=9&type=section&id=Dividends) The company declared a Q2 2024 cash dividend of $0.275 per share, representing a conservative 64.0% payout ratio of FFO and AFFO - Paid a Q2 2024 cash dividend of **$0.275 per share**, payable on June 28, 2024[29](index=29&type=chunk) - The dividend represents a payout ratio of **64.0%** of Q2 2024 FFO and AFFO per diluted share[29](index=29&type=chunk) - The dividend represents an annualized yield of **6.5%** based on the closing stock price on July 17, 2024[12](index=12&type=chunk) [2024 Full-Year Outlook](index=10&type=section&id=2024%20Full-Year%20Outlook) PINE raised its full-year 2024 FFO and AFFO guidance to $1.58-$1.62 and $1.60-$1.64 per diluted share, respectively, maintaining investment and disposition volumes Revised 2024 Full-Year Guidance | Metric | Revised 2024 Outlook (Low) | Revised 2024 Outlook (High) | Change from Prior (Low) | Change from Prior (High) | | :--- | :--- | :--- | :--- | :--- | | Investments | $50 million | $80 million | - | - | | Dispositions | $50 million | $80 million | - | - | | FFO per Diluted Share | $1.58 | $1.62 | +$0.07 | +$0.06 | | AFFO per Diluted Share | $1.60 | $1.64 | +$0.07 | +$0.06 | - The guidance was increased as the company's net investment spreads have driven strong earnings growth[7](index=7&type=chunk) [Appendix: Financial Statements & Non-GAAP Reconciliations](index=11&type=section&id=Appendix%3A%20Financial%20Statements%20%26%20Non-GAAP%20Reconciliations) This appendix presents unaudited consolidated financial statements and detailed reconciliations of GAAP Net Income to non-GAAP metrics like FFO, AFFO, and Pro Forma EBITDA [Consolidated Statements of Operations](index=15&type=section&id=Consolidated%20Statements%20of%20Operations) The statements show Q2 2024 total revenues of $12.5 million and net income of $0.2 million, with year-to-date total revenues of $25.0 million and a net loss Consolidated Statements of Operations (in thousands) | (In thousands) | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenues | $12,490 | $24,956 | | Total Operating Expenses | $10,411 | $20,294 | | Gain on Disposition of Assets | $918 | $918 | | Interest Expense | ($2,831) | ($5,766) | | **Net Income (Loss)** | **$222** | **($61)** | [Consolidated Balance Sheets](index=14&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2024, total assets were $565.8 million, with total liabilities at $297.4 million and total equity at $268.4 million Consolidated Balance Sheets (in thousands) | (In thousands) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Real Estate—Net | $445,111 | $443,593 | | Total Assets | $565,777 | $564,560 | | Total Liabilities | $297,423 | $288,947 | | Total Equity | $268,354 | $275,613 | | **Total Liabilities and Equity** | **$565,777** | **$564,560** | [Non-GAAP Reconciliations](index=16&type=section&id=Non-GAAP%20Reconciliations) This section details reconciliations from GAAP Net Income to FFO and AFFO for Q2 2024, and the calculation of Net Debt to Pro Forma EBITDA FFO and AFFO Reconciliation (Q2 2024, in thousands) | Reconciliation (Q2 2024, in thousands) | Amount | | :--- | :--- | | Net Income | $222 | | Depreciation and Amortization | $6,352 | | Gain on Disposition of Assets | ($918) | | **Funds from Operations (FFO)** | **$6,313** | | Non-cash adjustments | $86 | | **Adjusted Funds from Operations (AFFO)** | **$6,399** | - The reconciliation of Net Debt to Pro Forma EBITDA results in a ratio of **7.4x** for the quarter ended June 30, 2024[87](index=87&type=chunk) - The company defines FFO per NAREIT guidelines and further adjusts for non-cash items like straight-line rent and amortization of financing costs to calculate AFFO, which management uses to assess operating performance[59](index=59&type=chunk)[77](index=77&type=chunk)[79](index=79&type=chunk)

In accordance with FASB guidance, the fair value of the real estate acquired with in-place leases is allocated to the acquired tangible assets, consisting of land, building and tenant improvements, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, the value of in-place leases, and the value of leasing costs, based in each case on their relative fair values. In allocating the fair value of the identified intangible assets and liabilities of an ...

WINTER PARK, Fla., July 18, 2024 (GLOBE NEWSWIRE) -- Alpine Income Property Trust, Inc. (NYSE: PINE) (the "Company" or "PINE") today announced its operating results and earnings for the quarter ended June 30, 2024. Select Highlights Reported Net Income per diluted share attributable to the Company of $0.01 for the quarter ended June 30, 2024. Reported both FFO and AFFO per diluted share of $0.43 for the quarter ended June 30, 2024, an increase of 16.2% from the comparable prior year period. Acquired a net l ...

A live webcast of the call will be available on the Investor Relations page of the Company's website at www.alpinereit.com or at the link provided in the event details below. To access the call by phone, please go to the registration link provided in the event details below and you will be provided with dial-in details. About Alpine Income Property Trust, Inc. We encourage you to review our most recent investor presentation which is available on our website at http://www.alpinereit.com. WINTER PARK, Fla., J ...

Core Viewpoint - Alpine Income Property Trust, Inc. (PINE) has reported significant investment and disposition activities year-to-date, highlighting its strategic focus on net leased properties and structured investments to enhance rental revenues and overall financial performance [1][10]. Investment Activities - Year-to-date total investment activity reached $28.9 million as of June 24, 2024, with a weighted average initial investment yield of 9.85% [10]. - The company originated a 15-month first mortgage structured investment totaling $6.1 million, with an initial yield of 11.5%, funding approximately $4.6 million at the loan's start [2]. - A two-tenant net leased retail property was purchased for $14.6 million, fully leased to investment-grade-rated tenants Best Buy and Golf Galaxy, with a weighted average remaining lease term of 4.6 years [9]. Disposition Activities - Total investment sales amounted to $20.2 million at a yield of 7.69%, including the sale of a $13.6 million participation in a $24 million portfolio loan [3]. - The company completed the sale of two net lease properties leased to Hobby Lobby and Festival Foods for a total of $6.6 million, generating aggregate gains of $0.9 million with a weighted average exit cap rate of 7.04% [5]. Market Performance - Shares of Alpine Income, currently holding a Zacks Rank 3 (Hold), have gained 0.9% over the past three months, contrasting with a 1.6% decline in the industry [6]. - The company is expected to maintain a robust investment strategy, with management projecting 2024 investments and dispositions to be within the range of $50-$80 million [11].

Core Viewpoint - The real estate sector, particularly Alpine Income Property Trust, Inc. (PINE), has faced challenges due to elevated interest rates, but it remains a solid investment option with a focus on high-quality commercial net lease properties. However, vulnerabilities, particularly related to tenant Walgreens Boots Alliance, Inc. (WBA), necessitate a reconsideration of previous strong buy ratings [2][14]. Portfolio Analysis - PINE's annualized base rent is significantly exposed to Walgreens, which accounts for 12% of total rent. Walgreens is experiencing declining revenues and is closing over 150 stores in 2024, raising concerns about its ability to pay rent [4][14]. - The majority of PINE's tenants are investment-grade rated, with 65% of total portfolio rent coming from such tenants. The average lease term is 6.9 years, providing revenue predictability [5][6]. - PINE lacks exposure to West Coast markets, particularly California, which presents potential expansion opportunities [6]. Financial Performance - PINE reported Q1 revenue of $12.47 million, reflecting an 11.7% year-over-year growth. Funds from Operations (FFO) per share were $0.41, exceeding expectations by $0.03 [7][8]. - The company has a market cap of $228 million, with cash and equivalents totaling approximately $5.1 million, offset by long-term debt of $272 million. However, there are no debt maturities until 2026, allowing time for cash accumulation [7][8]. - PINE maintains a high occupancy rate of 99% and has been managing operating expenses effectively, reducing them from $10.2 million in Q4 to $9.9 million in Q1 [8]. Dividend Insights - The current dividend yield is 7%, with a declared quarterly dividend of $0.275 per share. The FFO coverage ratio for the dividend is 149%, indicating a strong capacity for future dividend increases [9][14]. - Since 2021, PINE has achieved an average compound annual growth rate (CAGR) of about 8% in dividends, suggesting potential for reliable income growth [9][10]. Valuation Metrics - PINE trades at a price-to-FFO ratio of 10.14x, below the sector median of 12.7x. Wall Street's average price target for PINE is $18.25 per share, indicating a potential upside of 17% [12][13]. - A fair value estimate of approximately $22 per share suggests a potential upside of 41.5% if PINE can achieve a modest growth rate of 4% [13][14]. Conclusion - PINE is well-managed in a challenging interest rate environment, with strong FFO coverage for dividends and potential for growth. However, the significant reliance on Walgreens for rental income poses a risk that needs to be monitored [14].

WINTER PARK, Fla., June 21, 2024 (GLOBE NEWSWIRE) -- Alpine Income Property Trust, Inc. (NYSE: PINE) (the "Company") today announced its year-to-date 2024 investment and disposition activities. 2024 Disposition Activity Safe Harbor About Alpine Income Property Trust, Inc. made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. During the second quarter, the Company acquired a two-tenant n ...

Investment Activity - In Q2 2024, the company acquired a two-tenant net leased retail property for $14.6 million, fully leased to investment-grade tenants Best Buy and Golf Galaxy, with a weighted average remaining lease term of 4.6 years [2] - The property spans approximately 101,000 square feet on 7.38 acres [2] - The company originated a 15-month first mortgage structured investment totaling $6.1 million at an initial yield of 11.5%, funding approximately $4.6 million at loan origination [2] - Year-to-date total investment activity as of June 24, 2024, reached $28.9 million with a weighted average initial investment yield of 9.85% [2] Disposition Activity - In Q2 2024, the company sold two net lease properties leased to Hobby Lobby and Festival Foods for a total of $6.6 million, achieving a weighted average exit cap rate of 7.04% [3] - The sales generated aggregate gains of $0.9 million [3] - Including a previously disclosed sale of a $13.6 million A-1 participation of its $24.0 million portfolio loan, total investment sales amounted to $20.2 million at a yield of 7.69% [3] Company Overview - Alpine Income Property Trust, Inc. is a publicly traded real estate investment trust focused on delivering attractive risk-adjusted returns and dependable cash dividends by investing in, owning, and operating a portfolio of single-tenant net leased properties predominantly leased to high-quality publicly traded and credit-rated tenants [4]

Investment Thesis NETSTREIT (NTST) Agree Realty Corporation (ADC) Realty Income (O) NNN REIT (NNN) However, PINE is significantly smaller than each of the entities mentioned. Please refer to the table below. In this article, I've analyzed PINE's business and balance sheet and provided its valuation outlook - with each section supported by a comparison to its larger competitors (excl. O). adventtr Introduction PINE is the smallest triple-net lease REIT analyzed within Cash Flow Venue. As of March 2024, the C ...