Alpine me Property Trust(PINE) - 2021 Q2 - Quarterly Report

PART I—FINANCIAL INFORMATION Financial Statements Unaudited consolidated financial statements for Alpine Income Property Trust, Inc. for Q2 and H1 2021 Consolidated Balance Sheets Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Total Real Estate, at cost | $314,689 | $225,889 | | Total Assets | $367,497 | $262,240 | | Long-Term Debt | $140,806 | $106,809 | | Total Liabilities | $149,057 | $113,147 | | Total Equity | $218,440 | $149,093 | - Total assets increased significantly to $367.5 million as of June 30, 2021, from $262.2 million at year-end 2020, primarily driven by acquisitions of real estate properties[9] Consolidated Statements of Operations Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $6,597 | $4,591 | $12,487 | $8,762 | | Net Income | $346 | $279 | $857 | $294 | | Net Income Attributable to PINE | $304 | $240 | $744 | $253 | | Diluted EPS | $0.03 | $0.03 | $0.08 | $0.03 | | Dividends Declared and Paid | $0.25 | $0.20 | $0.49 | $0.40 | - Total revenues grew 43.7% YoY for the three months ended June 30, 2021, driven by income from property acquisitions. Net income attributable to the company increased to $304,000 in Q2 2021 from $240,000 in Q2 2020[10] Consolidated Statements of Cash Flows Cash Flow Summary - Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net Cash Provided By Operating Activities | $8,866 | $3,547 | | Net Cash Used In Investing Activities | ($65,930) | ($76,087) | | Net Cash Provided By Financing Activities | $63,654 | $61,425 | - For the first six months of 2021, the company generated $8.9 million in cash from operations, used $65.9 million for real estate acquisitions, and raised a net $63.7 million from financing activities, including stock issuance and debt proceeds[16] Notes to Consolidated Financial Statements - The company owns a portfolio of 71 net leased retail and office properties. It is externally managed by a subsidiary of CTO Realty Growth, Inc. (CTO)[21][22] - During the six months ended June 30, 2021, the company acquired 23 income properties for a combined purchase price of $103.2 million[53] - As of June 30, 2021, total outstanding debt was $141.6 million, consisting of a credit facility, a term loan, and mortgage notes[66] - In June 2021, the company completed a follow-on public offering of 3,220,000 shares, receiving net proceeds of $54.3 million[85] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses financial condition, operations, liquidity, and non-GAAP measures, highlighting portfolio growth and acquisition-driven revenue Overview - The company owns and operates a portfolio of 71 high-quality commercial net lease properties, which are 100% occupied[133][134][137] - As of June 30, 2021, the portfolio's leases have a weighted-average remaining lease term of 8.0 years[137] - The company is externally managed by a wholly owned subsidiary of CTO Realty Growth, Inc[139] Results of Operations Comparison of Three Months Ended June 30, 2021 and 2020 (in thousands) | Account | Q2 2021 | Q2 2020 | $ Variance | % Variance | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $6,597 | $4,591 | $2,006 | 43.7% | | Total Operating Expenses | $5,573 | $3,968 | $1,605 | 40.4% | | Net Income | $346 | $279 | $67 | 24.0% | - The $2.0 million (43.7%) increase in Q2 2021 revenue was driven by the expanded income property portfolio, which included the acquisition of 23 properties in H1 2021 and 18 properties in H2 2020[148] Comparison of Six Months Ended June 30, 2021 and 2020 (in thousands) | Account | YTD 2021 | YTD 2020 | $ Variance | % Variance | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $12,487 | $8,762 | $3,725 | 42.5% | | Total Operating Expenses | $10,397 | $7,875 | $2,522 | 32.0% | | Net Income | $857 | $294 | $563 | 191.5% | Liquidity and Capital Resources - As of June 30, 2021, the company had total cash of $8.5 million, including $2.2 million in restricted cash[161] - The company had $100.0 million available for borrowing under its Credit Facility as of June 30, 2021[161][166] - During the first six months of 2021, the company acquired 23 income properties for an aggregate purchase price of $103.2 million[162] Non-GAAP Financial Measures FFO and AFFO Reconciliation (in thousands) | Metric | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $346 | $279 | $857 | $294 | | Funds from Operations (FFO) | $3,809 | $2,565 | $7,463 | $4,603 | | Adjusted Funds from Operations (AFFO) | $3,892 | $1,368 | $7,742 | $3,176 | FFO and AFFO Per Diluted Share | Metric | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | | :--- | :--- | :--- | :--- | :--- | | FFO per diluted share | $0.38 | $0.29 | $0.79 | $0.51 | | AFFO per diluted share | $0.39 | $0.16 | $0.82 | $0.35 | Quantitative and Qualitative Disclosures About Market Risk As a smaller reporting company, the company is exempt from providing quantitative and qualitative market risk disclosures - As a smaller reporting company, PINE is exempt from providing disclosures about market risk under Item 305(e) of Regulation S-K[182] Controls and Procedures Management confirmed effective disclosure controls and procedures, with no material changes in internal control during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[183] - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[183] PART II—OTHER INFORMATION Legal Proceedings The company is not currently involved in any material pending or threatened legal proceedings - The company is not currently a party to any material legal proceedings[184] Risk Factors No material changes to risk factors were reported from the Annual Report on Form 10-K for December 31, 2020 - There have been no material changes in risk factors from those set forth in the company's Annual Report on Form 10-K for the year ended December 31, 2020[186] Unregistered Sales of Equity Securities and Use of Proceeds This item is not applicable for the reporting period - Not applicable[187] Other Information This item is not applicable for the reporting period - Not applicable[189] Exhibits This section lists exhibits filed with Form 10-Q, including agreements, amendments, and Sarbanes-Oxley certifications - Exhibits filed include amendments to credit agreements, loan assumption agreements, and Sarbanes-Oxley certifications[190]