Core Insights - Alpine Income Property Trust (NYSE: PINE) has shown a strong portfolio of investment-grade tenants and an attractive valuation, with the stock price increasing from $15.92 to $19.42 before settling at $16.21 [2] Company Overview - The company focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The stock's performance indicates a positive trend, reflecting investor confidence in the company's fundamentals [2] Investment Strategy - The investment approach emphasizes defensive stocks with a medium- to long-term horizon, appealing to investors seeking stability [2]

Group 1 - The net lease REIT sector has become increasingly popular among retail investors within the broader real estate investment trust industry [1] - This article focuses on the performance and characteristics of net lease REITs, which are a significant area of interest for investors [1]

Core Viewpoint - Alpine Income Property Trust, Inc. has announced a new common stock repurchase program with a total purchase price of up to $10,000,000, allowing the company flexibility in acquiring its shares in the open market [1] Company Overview - Alpine Income Property Trust, Inc. is a publicly traded real estate investment trust (REIT) focused on delivering attractive risk-adjusted returns and dependable cash dividends by investing in single tenant net leased commercial income properties, primarily leased to high-quality publicly traded and credit-rated tenants [2]

Financial Data and Key Metrics Changes - The company achieved AFFO of $0.74 per diluted share for the year, representing growth of 17% [6] - Total revenue for Q4 was $13.8 million, with FFO and AFFO both at $0.44 per diluted share, reflecting growth of 19% and 16% respectively over the prior year [16] - For the full year, total revenue was $52.2 million, with FFO at $1.73 per diluted share, representing 18% growth over the prior year [17] Business Line Data and Key Metrics Changes - The company acquired six properties for $50.5 million in Q4, bringing total acquisitions for the year to twelve at a weighted average cash cap rate of 8.2% [8] - The company originated three commercial loans during the year for $31.1 million at a weighted average yield of 10.7% [9] - The company sold $62 million of property at an average cap rate of 6.9%, reflecting a strategic effort to reduce risk [10] Market Data and Key Metrics Changes - 51% of the company's ABR is attributable to investment-grade rated tenants [9] - The company ended the year with a net debt to EBITDA ratio of 7.4 times, down from 7.7 times at the beginning of the year [19] Company Strategy and Development Direction - The company plans to continue its investment strategy with a barbell approach, focusing on both investment-grade rated tenants and higher-yielding opportunities [11] - The company anticipates an active pipeline of opportunities across the tenant landscape [15] Management's Comments on Operating Environment and Future Outlook - Management noted that the Party City bankruptcy and the vacant theater in Reno will impact 2025 FFO and AFFO per share by approximately $0.08 [23] - The company remains optimistic about the investment landscape, with a strong pipeline of potential acquisitions and loan originations [81] Other Important Information - The company has no debt maturing until 2026, and its weighted average interest rate on debt is 4.1% [20] - The annual run rate for the external management fee is now $4.5 million [24] Q&A Session Summary Question: Should we expect a further paring down of Walgreens exposure? - Management indicated that they are negotiating to reduce Walgreens exposure and are timing it with acquisitions [26][27] Question: Can you provide any color on your appetite for acquisitions versus construction loans? - Management expressed a balanced interest in both acquisitions and loans, seeing robust opportunities on both sides [28][31] Question: What do you expect for the commercial loan maturing in 2025? - Management expects one loan to pay off and three to extend, with confidence in replacing the maturing loan [35][36] Question: What is the expected timing for property sales and acquisitions? - Management anticipates more activity towards the end of the first quarter [38] Question: Are the beachside group assets back to full capacity after storm damage? - Management confirmed that the assets are performing well, with some exceeding pre-hurricane performance [44][45] Question: Are there any other locations expected to be vacant in 2025 or early 2026? - Management stated that there are no other anticipated vacancies beyond the previously mentioned properties [50] Question: Is there a market for at-home assets? - Management acknowledged that there is a market for at-home assets due to their unique configurations and low basis [55] Question: Any unusual line items expected in 2025? - Management indicated that most expenses will have a consistent run rate, with no unusual one-time fees anticipated [58] Question: Will the company consider swaps for the revolver balance? - Management mentioned that they might consider swaps depending on the timing of acquisitions and dispositions [92] Question: Will the company achieve a positive cap rate spread on acquisitions and dispositions? - Management indicated that while some assets may not yield a positive spread, they expect accretive recycling once capital is redeployed [95]

Fourth Quarter 2024 Investor Presentation Company Snapshot 134 Properties $564M Enterprise Value $144 TEV / SF 3.9M Total Portfolio Square Feet 8.1% Implied Cap Rate 100% Retail Net Lease Portfolio 51% of ABR From Investment Grade-Rated Tenants 6.7% Annualized Dividend Yield $267M Equity Market Capitalization Portfolio1 Value + Income 8.7 Years W.A. Lease Term2 As of December 31, 2024, unless otherwise noted. PINE stock price on 12/31/2024 was $16.79. 1. Three properties, which were acquired in the third qu ...

Core Viewpoint - Alpine Income (PINE) reported quarterly funds from operations (FFO) of $0.44 per share, exceeding the Zacks Consensus Estimate of $0.42 per share, and showing an increase from $0.37 per share a year ago [1][2] Group 1: Financial Performance - The company achieved an FFO surprise of 4.76% for the recent quarter, following a previous surprise of 12.50% when it reported $0.45 instead of the expected $0.40 [1] - Revenues for the quarter ended December 2024 were $13.79 million, surpassing the Zacks Consensus Estimate by 1.99%, and up from $11.58 million year-over-year [2] - Over the last four quarters, Alpine Income has consistently surpassed consensus FFO and revenue estimates [2] Group 2: Stock Performance and Outlook - Since the beginning of the year, Alpine Income shares have increased by approximately 3.2%, slightly outperforming the S&P 500's gain of 3.1% [3] - The future performance of the stock will largely depend on management's commentary during the earnings call and the company's FFO outlook [3][4] - The current consensus FFO estimate for the upcoming quarter is $0.44 on revenues of $13.93 million, and for the current fiscal year, it is $1.78 on revenues of $56.44 million [7] Group 3: Industry Context - The REIT and Equity Trust - Other industry, to which Alpine Income belongs, is currently ranked in the bottom 34% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Alpine Income may also be influenced by the overall outlook for the industry [8]

Financial Performance - Total revenues for the year ended December 31, 2024, increased to $52.2 million, up 14% from $45.6 million in 2023[320] - Net income attributable to Alpine Income Property Trust, Inc. for 2024 was $2.1 million, a decrease of 29% compared to $2.9 million in 2023[320] - Funds From Operations (FFO) for 2024 were reported at $26.1 million, an increase of 14% from $22.9 million in 2023[331] - Adjusted Funds From Operations (AFFO) for 2024 reached $26.2 million, up from $23.2 million in 2023, reflecting a growth of 13%[331] - Total revenues for the year ended December 31, 2024, increased by 14.4% to $52.2 million compared to $45.6 million in 2023[332] - Lease income rose to $46.0 million in 2024, a 2.3% increase from $45.0 million in 2023, driven by acquisitions despite some tenant credit losses[333] - Interest income from commercial loans and investments surged to $5.8 million in 2024, up 804.4% from $0.6 million in 2023, due to an expanded portfolio[334] - Other revenue increased significantly to $0.5 million in 2024 from less than $0.1 million in 2023, attributed to a new revenue sharing agreement[335] - Total operating expenses decreased slightly by 0.5% to $41.7 million in 2024 from $41.9 million in 2023, despite a rise in real estate expenses[332] Asset Management - The company acquired 12 properties for a total purchase price of $103.6 million during 2024, while selling 15 properties for $62.0 million, resulting in gains of $3.4 million[316] - As of December 31, 2024, the company owned 134 properties with a total gross leasable area of 3.9 million square feet and a portfolio occupancy rate of 98%[317] - The company sold 15 properties in 2024 for $62.0 million, generating gains of $3.4 million, compared to 24 properties sold for $108.3 million in 2023[340] - The company acquired 12 properties for a total of $103.6 million in 2024, including a $31.4 million sale-leaseback transaction[364] Debt and Liquidity - Long-term debt increased to $301.5 million in 2024, up from $275.7 million in 2023, representing a rise of 9%[321] - Interest expense increased by 18.1% to $12.0 million in 2024, driven by a higher average outstanding debt balance[342] - The company has a long-term debt obligation of $302.0 million, with no payments due within one year[370] - The company believes it has sufficient liquidity to fund operations and capital requirements, with $90.4 million available under the 2022 ATM Program and $89.5 million available under the existing Credit Facility[371] - Net cash provided by financing activities increased to $26.4 million in 2024 from a cash outflow of $11.4 million in 2023, reflecting a $17.3 million increase in net proceeds from long-term debt[362] Impairments and Expenses - The company recorded a $1.7 million impairment charge in 2024, down from $3.2 million in 2023, reflecting improved credit loss reserves[338] - General and administrative expenses rose by 4.3% to $6.6 million in 2024, influenced by increased corporate legal and consulting fees[337] - Interest expense increased to $10.1 million in 2023 from $9.5 million in 2022, attributed to higher average interest rates[357] Cash Flow - Cash and cash equivalents totaled $8.0 million as of December 31, 2024, including $6.4 million in restricted cash[359] - Net cash used in investing activities rose to $57.8 million in 2024 from $13.6 million in 2023, driven by a $36.2 million increase in acquisitions[361] Dividends - The company declared and paid dividends of $1.110 per share in 2024, slightly up from $1.100 in 2023[320]

Press Release IMMEDIATE ALPINE INCOME PROPERTY TRUST REPORTS FOURTH QUARTER AND FULL YEAR 2024 OPERATING RESULTS - Fourth Quarter Net Loss of $0.06 per diluted share and FFO and AFFO of $0.44 per diluted share - - Closed Investments of $134.7 million at an 8.7% cash yield in 2024 – - Increases Dividend for Q1 2025 - - Provides 2025 Outlook - WINTER PARK, FL – February 6, 2025 – Alpine Income Property Trust, Inc. (NYSE: PINE) (the "Company" or "PINE"), an owner and operator of single tenant net leased commer ...

Core Insights - The company reported a fourth quarter net loss of $0.06 per diluted share, with FFO and AFFO of $0.44 per diluted share [1][3] - Closed investments totaled $134.7 million at an 8.7% cash yield in 2024 [1][4] - The company increased its dividend for Q1 2025 [1][16] - A 2025 outlook was provided, indicating expected investments and dispositions [1][18] Financial Performance - Total revenues for Q4 2024 were $13.791 million, up from $11.581 million in Q4 2023 [3] - Net income attributable to the company for the year was $2.066 million, down from $2.917 million in 2023 [3] - FFO for the year was $26.098 million, an increase from $22.910 million in 2023 [3] - AFFO for the year was $26.185 million, compared to $23.211 million in 2023 [3] Investment Activity - The company completed 12 investments totaling $103.6 million for the year, with a weighted average initial cash cap rate of 8.2% [4] - Dispositions for the year amounted to $75.589 million, with a weighted average exit cash cap rate of 7.1% [6] - The company reduced its exposure to Walgreens and increased the weighted average remaining lease term to 8.7 years [2] Property Portfolio - As of December 31, 2024, the company owned 134 properties with a total of 3.9 million square feet and an annualized base rent of $44.3 million [7] - The occupancy rate of the portfolio was 98.0%, with 51% of ABR attributable to investment-grade rated tenants [7] - The top industries represented in the portfolio included Sporting Goods (16%), Home Improvement (13%), and Dollar Stores (12%) [9] Balance Sheet and Capital Markets - As of December 31, 2024, the company's net debt to total enterprise value was 52.6% [11] - Total liquidity was reported at $95.109 million, with $89.545 million available under the revolving credit facility [11] - The company had total long-term debt of $302 million with a weighted average interest rate of 4.10% [12] Dividend Information - The company declared a quarterly cash dividend of $0.285 per share for Q1 2025, representing a 1.8% increase from the previous quarter [16][17] - The FFO payout ratio for the year was 64.2% [17] 2025 Outlook - The company anticipates investments between $50 million and $80 million and dispositions between $20 million and $30 million in 2025 [18] - Expected FFO and AFFO per diluted share for 2025 are projected to be between $1.70 and $1.73 [18][19]

Core Insights - Investors are evaluating the value opportunities presented by Alpine Income (PINE) and SL Green (SLG) in the REIT and Equity Trust - Other sector [1] Valuation Metrics - Both PINE and SLG have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3] - PINE has a forward P/E ratio of 9.57, while SLG has a forward P/E of 11.95 [5] - PINE's PEG ratio is 1.60, compared to SLG's PEG ratio of 5.33, suggesting PINE is more favorably valued in terms of expected EPS growth [5] - PINE has a P/B ratio of 0.89, indicating a lower market value relative to its book value, while SLG has a P/B of 1.18 [6] - Based on these valuation metrics, PINE earns a Value grade of B, whereas SLG receives a Value grade of D [6] Investment Conclusion - Despite both stocks having solid earnings outlooks, PINE is identified as the superior value option based on the discussed valuation figures [7]