Core Thesis - Alpine Income Property Trust (PINE) presents a compelling value proposition with an AFFO yield of nearly 12%, which comfortably supports its 7.6% dividend, but faces various challenges that may affect its quality compared to peers [1][2] Value Proposition - The company's value is driven by a low cost-basis and a stock price that results in an enterprise value of $150 per square foot, significantly below the replacement cost of over $200 per foot [3] - Each $100 invested in PINE generates $11.94 of AFFO, with comparable properties trading at cap rates of 6.5%-9%, indicating that PINE offers superior cash flow compared to direct real estate investments [4] Cash Flow Stability - Cash flows are secured with a weighted average lease term of 9 years, and 50% of tenants hold investment-grade ratings, which is favorable compared to triple net peers [7][9] Market Position - PINE's AFFO multiple of 8.7X is low relative to the broader market and even within the REIT sector, where the average AFFO multiple is 13.1X, indicating that while PINE is cheap, the valuation gap with peers is not substantial [11][12] Quality Concerns - PINE is considered lower quality due to its exposure to cyclical retailers, with a significant number of at-risk tenants, including pharmacies and dollar stores, which have faced recent struggles [13][15] - The company has a longer list of watchlist tenants, and recent bankruptcies among tenants like At Home raise concerns about future cash flows [19][20] Loan Portfolio - PINE has a loan portfolio totaling $69.6 million, which is substantial relative to its $212 million market cap, and the expiration of these loans could negatively impact AFFO [22][23] Future Growth Outlook - Despite an attractive AFFO multiple, PINE's growth is expected to be weaker than peers over the next four years due to elevated tenant churn and the roll-off of lucrative loans [27] - The company may become a more attractive investment if it successfully replaces troubled tenants with more stable ones or if it can reinvest expiring loans into equally high-return investments [29]

Albert Anthony is a Croatian-American media personality and Analyst for financial media platforms Investing.com and Seeking Alpha, where he has grown over +1K followers since 2023. Writing general markets commentary and opinion as The Analyst, he has covered over +200 companies in multiple sectors, with a focus on dividend stocks. The author grew up in the NYC area and has also called home Austin Texas and his parents' native Croatia, where he took part in many business/innovation conferences as a business ...

Core Points - Alpine Income Property Trust, Inc. has declared a quarterly cash dividend of $0.285 per share for Q2 2025, representing an annualized yield of approximately 7.7% based on the stock's closing price on May 23, 2025 [1][2] - The dividend is payable on June 30, 2025, to stockholders of record as of June 12, 2025, with the ex-dividend date also on June 12, 2025 [2] 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 properties, primarily leased to high-quality publicly traded and credit-rated tenants [3]

Group 1: Alpine Income - Alpine Income is a relatively new REIT founded in 2019, with a market cap of $216.6 million, making it a smaller alternative to larger REITs like Realty Income, which has a market cap of $51 billion [4] - The company focuses on single-tenant net-lease properties, resulting in lower overhead costs as tenants are responsible for expenses like taxes, insurance, and maintenance [4][5] - Alpine Income's portfolio consists of 134 properties that are 99% occupied and diversified across 35 U.S. states, with top tenants including well-known brands like Dicks Sporting Goods and Lowe's [5] - The company offers a high dividend yield of 7.6%, significantly above the S&P 500 index average of 1.27%, making it attractive for income-focused investors [6] Group 2: Dollar General - Dollar General's shares have increased by 22% year to date, recovering from previous weaknesses due to high inflation affecting its low-cost business model [7] - The company is better positioned to handle potential threats from new tariff policies, with only 10% of its inventory exposed to global tariffs, compared to 50% for Dollar Tree and nearly 100% for other retailers [8] - Dollar General's focus on low prices and rural areas creates an economic moat, attracting customers away from larger competitors like Walmart and Target [9] - The company has an attractive valuation with a forward price-to-earnings (P/E) multiple of 17, significantly lower than Walmart's 37 times expected earnings, and offers a dividend yield of 2.6% [10]

Financial Data and Key Metrics Changes - The company achieved AFFO of $0.44 per diluted share for Q1 2025, representing growth of approximately 5% compared to Q1 2024 [5] - Total revenue was $14.2 million for the quarter, including lease income of $11.8 million and interest income from commercial loans of $2.3 million [13] - FFO and AFFO for the quarter were both $0.44 per diluted share, representing growth of 7.3% and 4.8% respectively compared to the same quarter of the prior year [13] - The company increased its common dividend to a new quarterly rate of $0.285, continuing its practice of annual dividend increases since its IPO [6][17] Business Line Data and Key Metrics Changes - The company acquired three properties for $39.7 million at a weighted average initial cap rate of 8.6% and originated two mortgages totaling $39.5 million with a weighted average initial yield of 9.5% [7][8] - Total investment activity for the quarter, including property acquisitions and structured finance investments, totaled $79.2 million at a weighted average initial yield of 9% [7] - The average WALT for acquisitions was 14.3 years, while properties sold had a WALT of 4.7 years, resulting in a portfolio WALT decrease to 9 years from 6.9 years a year ago [10][11] Market Data and Key Metrics Changes - The company noted that it is well-positioned given its tenant mix and sector diversification amidst recent tariff volatility and uncertainty [12] - The company has a pipeline of opportunities across the tenant landscape and remains focused on executing its strategy for growth and stability [12] Company Strategy and Development Direction - The company is focused on a strategic approach to investing, which includes acquiring a mix of high credit tenants for stable cash flows and lesser credits for growth and diversification [10] - The company is actively managing its portfolio by opportunistically selling properties to reduce risk and improve tenant concentrations [10] - The company plans to continue balancing between share buybacks, acquisitions, and investments throughout the year [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current operating environment, noting no significant disruptions from tariff issues [38] - The company is increasing its FFO and AFFO guidance for the full year of 2025 to a range of $1.74 to $1.77 per diluted share, driven by successful investment activity [18] - Management highlighted that they do not anticipate having more leverage by the end of the year and may even reduce it [92] Other Important Information - The company ended the quarter with net debt to pro forma adjusted EBITDA of 7.9 times and had $65 million of liquidity available [15][16] - The company has no debt maturing until 2026, with staggered maturities thereafter [16] Q&A Session Summary Question: Factors driving the AFFO guidance raise - Management identified three main factors: stock buybacks, a swap that reduced interest rates, and investment activity [22][24] Question: Clarification on investment guidance - Management explained that the increase in investment guidance reflects funding for loans and property acquisitions, with a total of about $60 million funded in the quarter [26] Question: Future capital allocation priorities - Management indicated a balanced approach between buybacks, acquisitions, and investments, depending on market conditions [30] Question: Impact of tariffs on tenant activity - Management noted no significant disruptions in tenant activity due to tariffs, with strong performance from restaurants and other sectors [38] Question: Cap rates for future dispositions - Management suggested that future dispositions may have lower cap rates due to the mix of properties being sold [49] Question: Status of Family Dollar and Dollar Tree locations - Management confirmed they have about 31 locations, with a mix of Family Dollar and Dollar Tree properties [58] Question: Provision for impairment charge - Management clarified that the impairment charge was related to properties anticipated to be sold soon, such as Walgreens [80] Question: Timing of funding unfunded commitments - Management indicated that funding timing for loans should remain consistent for the first half of the year [86] Question: Leverage trends and expectations - Management expects to maintain or reduce leverage by year-end, despite recent increases [92]

Financial Data and Key Metrics Changes - The company achieved AFFO of $0.44 per diluted share for Q1 2025, representing a growth of approximately 5% compared to Q1 2024 [5] - Total revenue for the quarter was $14,200,000, including lease income of $11,800,000 and interest income from commercial loans of $2,300,000 [11] - FFO and AFFO for the quarter were both $0.44 per diluted share, representing growth of 7.3% and 8% respectively compared to the prior year [11] - The company increased its common dividend to a new quarterly rate of $0.0285, continuing its practice of annual dividend increases since its IPO [5][11] Business Line Data and Key Metrics Changes - The company acquired three properties for $39,700,000 at a weighted average initial cap rate of 8.6% [6] - Total investment activity for the quarter, including property acquisitions and structured finance investments, totaled $79,200,000 at a weighted average initial yield of 9% [6] - The average WALT (Weighted Average Lease Term) for acquisitions was 14.3 years, while the sold properties had a WALT of 4.7 years, resulting in a portfolio WALT increase to 9 years from 6.9 years [9] Market Data and Key Metrics Changes - The company noted that its tenant mix and sector diversification position it well amid recent tariff volatility and uncertainty [9] - The company has $65,000,000 of liquidity at quarter end, consisting of approximately $8,000,000 in cash and $57,000,000 available under its revolving credit facility [12] Company Strategy and Development Direction - The company is focused on a strategic approach to investing, which includes acquiring high credit tenants for stable cash flows and lesser credits for growth and diversification [8] - The company plans to continue monitoring the evolving economic environment while executing its strategy to deliver growth and stability for investors [10] - The company is balancing between share buybacks, acquisitions, and structured investments as part of its capital allocation strategy [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning despite tariff-related uncertainties, noting strong tenant activity and performance [30] - The company is increasing its FFO and AFFO guidance for the full year of 2025 to a range of $1.74 to $1.77 per diluted share, driven by successful investment activity [13] - Management highlighted that the current economic environment presents an attractive pipeline of opportunities across the tenant landscape [10] Other Important Information - The company has no debt maturing until 2026, and its debt maturities are well staggered [12] - The company is actively marketing two non-income producing assets, which are expected to be sold this year [31] Q&A Session Summary Question: Factors driving the increase in AFFO guidance - Management identified three main factors: stock buybacks, a favorable SOFR swap reducing interest rates, and successful investment activity [18][19] Question: Clarification on investment guidance - Management explained that the increase in investment guidance reflects a combination of property acquisitions and loan funding [20] Question: Future capital allocation priorities - Management indicated a focus on balancing share buybacks, acquisitions, and investments, with a history of taking advantage of market dislocations [24] Question: Impact of tariffs on tenant activity - Management noted no significant disruption in tenant activity due to tariffs, with strong performance observed in restaurants and other sectors [30] Question: Details on impairment charges - Management clarified that the impairment charge was related to properties anticipated to be sold in the short term [57] Question: Insights on structured investment portfolio - Management confirmed that the structured investment program focuses on high-quality credits, with no current tenant issues [66] Question: Future NOI considerations - Management highlighted that Party City will no longer contribute to NOI starting in Q2, impacting future earnings [68]

Financial Data and Key Metrics Changes - The company achieved AFFO of $0.44 per diluted share for Q1 2025, representing a growth of approximately 5% compared to the same quarter last year [5] - Total revenue for the quarter was $14,200,000, including lease income of $11,800,000 and interest income from commercial loans of $2,300,000 [11] - FFO and AFFO for the quarter were both $0.44 per diluted share, reflecting growth of 7.3% and 8% respectively compared to the prior year [11] - The company increased its common dividend to a new quarterly rate of $0.0285, continuing its practice of annual dividend increases since its IPO [5][11] Business Line Data and Key Metrics Changes - The company acquired three properties for $39,700,000 at a weighted average initial cap rate of 8.6% [6] - Total investment activity for the quarter, including property acquisitions and structured finance investments, totaled $79,200,000 at a weighted average initial yield of 9% [6] - The average WALT (Weighted Average Lease Term) for acquisitions was 14.3 years, while sold properties had a WALT of 4.7 years, resulting in a portfolio WALT increase to 9 years from 6.9 years year-over-year [9] Market Data and Key Metrics Changes - The company noted that its tenant mix and sector diversification position it well amid recent tariff volatility and uncertainty [9] - The company has $65,000,000 of liquidity at quarter-end, consisting of approximately $8,000,000 in cash and $57,000,000 available under its revolving credit facility [12] Company Strategy and Development Direction - The company is focused on a strategic approach to investing, which includes acquiring high credit tenants for stable cash flows and lesser credits for growth and diversification [8] - The company plans to continue opportunistic share repurchases as its shares trade at attractive relative valuations [9] - The company is increasing its FFO and AFFO guidance for the full year of 2025 to a range of $1.74 to $1.77 per diluted share, driven by successful investment activity [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position despite tariff volatility, noting a strong pipeline of opportunities across the tenant landscape [10] - The company is actively monitoring the evolving economic environment but sees no significant disruption in tenant activity [30] - Management indicated that the company expects to sell vacant properties this year, which will help pay down leverage and reinvest [66] Other Important Information - The company has no debt maturing until 2026, and its debt maturities are well staggered thereafter [12] - The company has been actively repurchasing shares, with approximately 274,000 common shares repurchased for $4,500,000 at an average price of $16.33 per share [11] Q&A Session Summary Question: Factors driving the increase in AFFO guidance - Management identified three main factors: stock buybacks, a swap that reduced interest rates, and investment activity [18][19] Question: Clarification on investment guidance - Management explained that the increase in investment guidance reflects loans and funding, with a total of approximately $60,000,000 funded in the quarter [20] Question: Future capital allocation priorities - Management indicated a balanced approach between buybacks, acquisitions, and investments, with a focus on maintaining liquidity [24][25] Question: Impact of tariffs on deal processes - Management noted no significant disruption from tariff issues, with strong tenant activity and restaurant performance [30] Question: Details on impairment charges - Management clarified that the impairment charge was related to properties anticipated to be sold in the short term [58] Question: Timing of funding unfunded commitments - Management indicated that funding should remain consistent in the first half of the year, with some larger loans maturing in the third quarter [60] Question: Leverage trends and expectations - Management expects leverage to decrease by year-end due to loan payoffs and property sales [66] Question: Tenant watch list in structured investments - Management confirmed that there are no tenant issues in the structured investment program, which focuses on high-quality credits [66]

Portfolio Overview - The company has 134 net lease properties[3], representing a total portfolio of 4.1 million square feet[3, 16] - The portfolio's enterprise value is $610 million, equating to $150 per square foot[3] - The portfolio has a 96% retail net lease occupancy rate[3] - 50% of the Annualized Base Rent (ABR) comes from investment-grade rated tenants[3, 16] - The weighted average lease term is 9.0 years[3, 16], up from 7.0 years at the beginning of 2024[14] Financial Performance - The company's equity market capitalization is $262 million[3] - The annualized dividend yield is 6.8%[3, 51] - The company repurchased 273,825 common shares for a net cost of $4.5 million[14] - The company originated/upsized 4 loans totaling $39.5 million with a weighted average initial cash yield of 9.5%[13] Tenant and Market Diversification - The top tenant accounts for 10% of ABR[36] - The top sector, sporting goods, accounts for 16% of ABR[23] - Florida represents the largest state exposure at 14% of ABR[24]

Alpine Income (PINE) came out with quarterly funds from operations (FFO) of $0.44 per share, beating the Zacks Consensus Estimate of $0.43 per share. This compares to FFO of $0.41 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an FFO surprise of 2.33%. A quarter ago, it was expected that this company would post FFO of $0.42 per share when it actually produced FFO of $0.44, delivering a surprise of 4.76%. Over the last four quarters, the company has ...

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited Q1 2025 consolidated financial statements detail balance sheets, operations, comprehensive income, equity, and cash flows, reflecting key financial changes from acquisitions and financing activities [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets show the company's financial position, including assets, liabilities, and equity, at specific points in time Consolidated Balance Sheet Highlights (in thousands) | Metric | March 31, 2025 (Unaudited) | December 31, 2024 | | :--------------------------------- | :--------------------------- | :------------------ | | Total Assets | $647,397 | $604,995 | | Real Estate—Net | $457,153 | $444,017 | | Commercial Loans and Investments | $110,009 | $89,629 | | Long-Term Debt—Net | $356,511 | $301,466 | | Total Liabilities | $383,612 | $328,500 | | Stockholders' Equity | $240,949 | $253,027 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) The consolidated statements of operations present the company's revenues, expenses, and net loss over specific periods Consolidated Statements of Operations Highlights (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Total Revenues | $14,206 | $12,466 | | Total Operating Expenses | $13,088 | $9,883 | | Gain on Disposition of Assets | $1,151 | — | | Net Loss | $(1,278) | $(283) | | Net Loss Attributable to Alpine Income Property Trust, Inc. | $(1,179) | $(260) | | Net Loss Per Common Share (Basic and Diluted) | $(0.08) | $(0.02) | - Total Revenues increased by **14.0% YoY**, driven by higher interest income from commercial loans and investments[10](index=10&type=chunk) - Total Operating Expenses increased by **32.4% YoY**, primarily due to a significant increase in the provision for impairment[10](index=10&type=chunk) [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) The consolidated statements of comprehensive income detail the changes in equity from non-owner sources, including net loss and other comprehensive income items Consolidated Statements of Comprehensive Income Highlights (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Net Loss | $(1,278) | $(283) | | Cash Flow Hedging Derivative - Interest Rate Swaps | $(2,393) | $2,355 | | Total Comprehensive Income (Loss) | $(3,671) | $2,072 | | Comprehensive Income (Loss) Attributable to Alpine Income Property Trust, Inc. | $(3,387) | $1,901 | - The company experienced a shift from comprehensive income to a comprehensive loss, largely due to a negative change in cash flow hedging derivatives (interest rate swaps)[12](index=12&type=chunk) [Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) The consolidated statements of stockholders' equity present changes in equity components, including net loss, stock repurchases, and dividends Changes in Stockholders' Equity (in thousands) | Item | Three Months Ended March 31, 2025 | | :--------------------------------- | :-------------------------------- | | Balance January 1, 2025 | $253,027 | | Net Loss | $(1,179) | | Stock Repurchases | $(4,482) | | Cash Dividends | $(4,495) | | Other Comprehensive Loss | $(2,208) | | Balance March 31, 2025 | $240,949 | - Stockholders' equity decreased by **$12.078 million** from January 1, 2025, to March 31, 2025, primarily due to net loss, stock repurchases, and cash dividends[14](index=14&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The consolidated statements of cash flows categorize cash movements into operating, investing, and financing activities, showing the net change in cash Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Net Cash Provided By Operating Activities | $7,901 | $6,760 | | Net Cash Used In Investing Activities | $(50,166) | $(4,105) | | Net Cash Provided By (Used In) Financing Activities | $45,886 | $(8,408) | | Net Increase (Decrease) in Cash and Cash Equivalents and Restricted Cash | $3,621 | $(5,753) | - Net cash used in investing activities significantly increased due to higher real estate acquisitions (**$39.988 million** in Q1 2025 vs **$1.138 million** in Q1 2024) and commercial loan investments (**$21.383 million** in Q1 2025 vs **$3.597 million** in Q1 2024)[16](index=16&type=chunk) - Net cash provided by financing activities turned positive, primarily driven by **$56.500 million** in proceeds from long-term debt in Q1 2025[16](index=16&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations and additional information supporting the consolidated financial statements [NOTE 1. BUSINESS AND ORGANIZATION](index=11&type=section&id=NOTE%201.%20BUSINESS%20AND%20ORGANIZATION) This note describes the company's business, organizational structure, and REIT tax election - Alpine Income Property Trust, Inc. (PINE) is a REIT owning and operating **134 net leased commercial properties** across **35 states**, with two primary business segments: income properties and commercial loans and investments[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) - The company is externally managed by Alpine Income Property Manager, LLC, a wholly owned subsidiary of CTO Realty Growth, Inc. (CTO)[23](index=23&type=chunk) - PINE has elected to be taxed as a REIT, requiring it to distribute at least **90%** of its annual REIT taxable income to stockholders[25](index=25&type=chunk) [NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=13&type=section&id=NOTE%202.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the key accounting principles and methods used in preparing the financial statements - The company operates in two primary business segments: income properties and commercial loans and investments[29](index=29&type=chunk) - Real estate assets are stated at cost, less accumulated depreciation and amortization, and are reviewed for impairment using an undiscounted cash flow approach[32](index=32&type=chunk)[33](index=33&type=chunk) - Lease income from operating leases is recognized on a straight-line basis over the lease term, with variable lease payments reimbursed by tenants[38](index=38&type=chunk)[39](index=39&type=chunk) - Commercial loans and investments are recorded at historical cost, net of unaccreted origination costs and a current expected credit losses (CECL) reserve[41](index=41&type=chunk)[42](index=42&type=chunk) - As of March 31, 2025, Dick's Sporting Goods accounted for **12%** of lease income, and **10%** of the income property portfolio (by square footage) was located in New Jersey and Michigan[56](index=56&type=chunk)[57](index=57&type=chunk) [NOTE 3. PROPERTY PORTFOLIO](index=21&type=section&id=NOTE%203.%20PROPERTY%20PORTFOLIO) This note provides details on the company's real estate holdings, including acquisitions, dispositions, and future rental receipts - As of March 31, 2025, the company's income property portfolio consisted of **134 properties** with **4.1 million** total square footage[58](index=58&type=chunk) Leasing Revenue (in thousands) | Category | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------- | :-------------------------------- | :-------------------------------- | | Lease Payments | $10,200 | $9,862 | | Variable Lease Payments | $1,626 | $1,602 | Minimum Future Rental Receipts (in thousands) | Year Ending December 31, | Amounts | | :----------------------- | :------ | | Remainder of 2025 | $31,513 | | 2026 | $41,578 | | 2027 | $38,278 | | 2028 | $33,775 | |