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Alpine me Property Trust(PINE) - 2025 Q1 - Quarterly Report

PART I—FINANCIAL INFORMATION Item 1. Financial Statements 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 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 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 investments10 - Total Operating Expenses increased by 32.4% YoY, primarily due to a significant increase in the provision for impairment10 Consolidated Statements of Comprehensive Income 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 Consolidated Statements of Stockholders' Equity 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 dividends14 Consolidated Statements of Cash Flows 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 - Net cash provided by financing activities turned positive, primarily driven by $56.500 million in proceeds from long-term debt in Q1 202516 Notes to Consolidated Financial Statements The notes provide detailed explanations and additional information supporting the consolidated financial statements NOTE 1. BUSINESS AND ORGANIZATION 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 investments202122 - The company is externally managed by Alpine Income Property Manager, LLC, a wholly owned subsidiary of CTO Realty Growth, Inc. (CTO)23 - PINE has elected to be taxed as a REIT, requiring it to distribute at least 90% of its annual REIT taxable income to stockholders25 NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 investments29 - Real estate assets are stated at cost, less accumulated depreciation and amortization, and are reviewed for impairment using an undiscounted cash flow approach3233 - Lease income from operating leases is recognized on a straight-line basis over the lease term, with variable lease payments reimbursed by tenants3839 - Commercial loans and investments are recorded at historical cost, net of unaccreted origination costs and a current expected credit losses (CECL) reserve4142 - 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 Michigan5657 NOTE 3. PROPERTY PORTFOLIO 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 footage58 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 | |